NORTH CAROLINA GENERAL ASSEMBLY

1969 SESSION

CHAPTER 458

SENATE BILL 505

AN ACT TO PLACE THE AUTHORITY IN THE STATE AUDITOR FOR INSTALLING OR CHANGING ACCOUNTING SYSTEMS IN STATE DEPARTMENTS, INSTITUTIONS OR AGENCIES.

The General Assembly of North Carolina do enact:

Section 1.  G.S. 147-58(17) is rewritten to read as follows:

"(17)    The auditor may, as often as he deems advisable, conduct a detailed review of the bookkeeping and accounting systems in use in the various departments, institutions, commissions, boards and agencies which are supported partially or entirely from State funds. Such examinations would be for the purpose of evaluating the adequacy of systems in use by these agencies and institutions. In instances where the Auditor determines that existing systems are outmoded, inefficient or otherwise inadequate, he shall prescribe and supervise the installation of such changes, as, in his judgment, appear necessary to secure and maintain internal control and facilitate the recording of accounting data for the purpose of preparing reliable and meaningful financial statements and reports. In all cases in which major changes in the accounting systems are made, he will be responsible for seeing that the new system is designed to accumulate information required for the preparation of Budget Reports and other financial reports required by the Budget Division of the Department of Administration. In instances in which departments, institutions, boards, commissions and agencies feel it desirable to revise or alter existing accounting systems, said agencies or institutions shall request the Auditor to make a survey of their systems for the purpose of seeing if such a change is desirable, including the advisability of purchasing or renting accounting equipment. Requisitions for the purchase of accounting equipment or contracts for the rental of accounting equipment for any State department, institution, or agency shall be approved by the Auditor.

Sec. 2.  Amend G.S. 143-22 by striking out the following words and phrases beginning after the word "State", in the sixth line: "and for the purpose of determining whether the proper system of modern accounting is had in such departments, institutions, commissions and agencies and to require and direct the installation of the same whenever, in his opinion, it is necessary and proper in order to acquire and to secure a perfect correlated and control system in the accounting of all departments, institutions, commissions, divisions, and State agencies including every department or agency handling or expending State funds". Also amend G.S. 143-22 by striking out the last two lines reading as follows: "All auditing systems or uses prescribed, or to be prescribed hereunder, shall be administered by the Auditor."

Sec. 3.  Amend G.S. 143-3 by rewriting the second paragraph thereof to read as follows: "The Director shall have power to have the books and accounts of any of such agencies or persons audited, and supervise generally the budget accounts of such departments, institutions and agencies within the terms of this article. The Director may require that the cost of making all audits shall be paid from the regular maintenance appropriation made by the General Assembly for such department, institution or agency which may be thus audited."

Sec. 4.  All laws and clauses of laws in conflict with this Act are hereby repealed.

Sec. 5.  This Act shall be in full force and effect from and after July 1, 1969.

In the General Assembly read three times and ratified, this the 12th day of May, 1969.