An important note for counties and municipalities regarding audits that are not submitted to the Local Government Commission (LGC) on or before March 31:
Pursuant to Session Law 2023-59 (G.S. 159-34(e) – (h)), the secretary of the LGC is required to provide a Notice of Noncompliance to all counties and municipalities that do not submit the FY 2025 audit report within 9 months of fiscal year end (March 31). Further, if a county or municipality does not submit the audit report within 12 months of fiscal year end (June 30), the secretary may direct the withholding of a portion of the unit’s sales tax distributions. Counties and municipalities may appeal this withholding action.
A Notice of Noncompliance will be issued to all counties and municipalities that do not submit FY 2025 audits on or before March 31, 2026. These notices will be mailed by the end of April to the unit’s primary address, as required by law. Note that LGC staff will mail these notices on yellow paper, in yellow envelopes, to make them easier to identify. To further assist in ensuring the notices are received, notices will also be emailed, as a courtesy, to units using email addresses on file with LGC staff.
If your unit receives a Notice of Noncompliance, your unit should:
- File the required audit report, or
- Take action to file a written appeal.
Appeals must be filed by June 30, 2026, for consideration by the LGC before the withholding action is taken.
More details on this process and information on submitting an appeal are available on our website: Notice of Noncompliance & Appeals.
Questions? Please email LGCNotifications@nctreasurer.com.