20 NCAC 03 .0405             COMMENTS TO FEDERAL AND STATE GRANTOR AGENCIES

(a)  A request from a federal or state agency requesting comment by the Commission on the accounting system and internal controls of a governmental unit which has applied to it for a grant or loan shall be presumed to have been made with the knowledge and consent of the governmental unit.

(b)  Comments shall be based on a comparison of the governmental units accounting system and internal controls with the standards set forth in 20 NCAC 3 .0401 with particular attention to the following areas, as applicable:

(1)           the chart of accounts,

(2)           purchasing,

(3)           receipt and disbursement of cash,

(4)           investment policies,

(5)           inventories,

(6)           fixed asset ledgers,

(7)           payrolls,

(8)           billings and accounts receivable,

(9)           degree of currency of posting journals and ledgers,

(10)         policies concerning interim financial statements.

(c)  The required data shall be obtained in any way in which the responsible deputy secretary deems appropriate, including, but not limited to:

(1)           review of audit reports and management letters,

(2)           consultation with the independent auditor of the governmental unit,

(3)           personal visits by representatives of the Commission,

(4)           conferences with officials of the governmental unit,

(5)           additional data furnished by and attested to by officials of the governmental unit.

History Note:        Authority G.S. 159‑3(f);

Eff. February 1, 1976;

Readopted Eff. September 23, 1977;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. January 9, 2018.