10a NCAC 27a .0114 AREA AUTHORITY FINANCIAL FAILURE DEFINED
(a) An area authority shall be deemed to be in imminent danger of failing financially if the Division determines at any time that one or more of the following conditions are met:
(1) The projected annual expenditures of the area authority exceed the sum of the projected annual revenues and fund balance of the authority and the governing board of the authority has not demonstrated an ability or willingness to take appropriate action to correct the imbalance; or
(2) The area authority has not complied with the reporting requirements of G.S. 122C-124, as set forth in the annual Memorandum of Agreement between the Division and the area authority.
(b) An area authority shall be deemed to be in imminent danger of failing to provide direct service to clients if it is in imminent danger of failing financially as defined in this Rule.
History Note: Authority G.S. 122C-125;
Eff. February 1, 1996;
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. June 25, 2016.