Local Finance Bulletin #62

Impending Changes to Bonding Requirements for Finance Officers: Prepare Now for January 1, 2023 and Beyond

Wednesday, November 23, 2022

Since 2005, the Local Government Budget and Fiscal Control Act (LGBFCA) has required finance officers for units of local government and public authorities in North Carolina to provide to their respective entities a “faithful performance bond with sufficient sureties in an amount . . . not less than fifty thousand dollars.” Due to the General Assembly’s recent enactment of S.L. 2022-53, that minimum coverage amount will change on January 1, 2023, for units with “annually budgeted funds” in excess of $500,000.

This bulletin explains bonding requirements for finance officers of units of local government and public authorities subject to the LGBFCA and explains how these entities and their finance officers should prepare for the implementation of Section 9.(a) of S.L. 2022-53 on January 1, 2023.

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