Local Finance Bulletin #66

The Local Government Commission (LGC) oversees the financial management of local governments in North Carolina, ensuring compliance with legal requirements and sound fiscal practices. One of its key tools for monitoring financial health is the Unit Assistance List (UAL), which identifies local governments facing financial challenges. According to the fiscal year 2021 audit results, 150 units—138 municipalities and 12 counties—were on the list.

This bulletin provides local governments with strategies to avoid being placed on the UAL and to remove themselves from it. It focuses on three key areas identified by the LGC: the annual budget process, financial management practices, and the annual audit process. The bulletin highlights the importance of maintaining self-supporting funds, implementing strong internal controls, and using audited financial statements to assess financial health. It also emphasizes the need for qualified finance officers and strong organizational policies to ensure long-term fiscal sustainability.