The preaudit is a statutory internal control process to ensure that public funds are spent appropriately. If implemented properly the preaudit can be an effective tool in preventing and/or mitigating employee mistake, misappropriation, and even fraud. The problem with the preaudit process is that it is difficult to follow the strictures of the statute, particularly […]
Posts Tagged ‘preaudit’
IT’S BACK . . . New E-Verify Contracting Requirements
Monday, October 5th, 2015In the waning days of the 2015 legislative session, the General Assembly enacted legislation that once again changes the E-Verify contracting prohibition for state and local government contracts. In some respects HB318 (Protect North Carolina Workers Act) limits the prohibition; in many other respects, however, the prohibition has been expanded. Local governments, school units, […]
New Law Modernizes Preaudit and Disbursement Processes–Part II
Thursday, September 24th, 2015Effective October 1, 2015, local governments, public authorities, and school units are subject to new preaudit and disbursement processes. In S.L. 2015-246, the legislature modified G.S. 159-28 (applicable to local governments and public authorities) and G.S. 115C-441 (applicable to school units) to address common issues faced by local units in implementing the preaudit and disbursement […]
New Law Modernizes the Preaudit and Disbursement Processes — Part I
Thursday, June 25th, 2015In recent years local governments and public authorities (collectively, local units) have struggled to comply with the statutory preaudit (G.S. 159-28(a)) and disbursement (G.S. 159-28(b) & (d)) processes, in particular when making web-based purchases, or when using credit cards, purchase cards, and fuel cards. In 2013 the North Carolina Court of Appeals made compliance even […]
Preauditing Employee Salaries and Wages
Friday, March 21st, 2014Having turned the corner on the Great Recession, the Town of FingersCrossing recently hired a few new employees. The finance office begins to process the first payroll since the new employees began working for the town. It is also the first payroll for the town’s newly-promoted finance officer, Connie Scientious. Connie has diligently reviewed the […]
The Perils of Preauditing P-Cards (and Other Electronic Payment Methods)
Friday, October 11th, 2013A county ambulance crew member calls Fiona, the county finance officer, at 9pm on Sunday night. The crew just responded to their third call of the night and he needs to refuel the ambulance. Fiona grabs a copy of the county’s budget ordinance and a printout of current expenditures and encumbrances and rushes out the door to […]
Court of Appeals Reaffirms New Interpretation of Pre-audit Requirement
Thursday, May 23rd, 2013In Executive Medical Transportation, Inc. v Jones County Department of Social Services, 735 S.E.2d 352 (NC Ct. App. 2012), disc. rev. den’d, 737 S.E.2d 378 (N.C. 2013), the North Carolina Court of Appeals held that an oral agreement between a medical transport company and the county was void because the agreement did not include a […]
A New Interpretation of the Preaudit Requirement
Thursday, November 8th, 2012UPDATE August 2013: The Court of Appeals reaffirmed this new interpretation in May 2013. Click here for more details. In July 2008, the Jones County Department of Social Services (JCDSS) entered into an oral services contract with a medical transportation services company. The contract was for one year. It was renewed annually in July of […]