NC Local Government Commission
The Local Government Commission is composed of nine members: the State Treasurer, the Secretary of State, the State Auditor, the Secretary of Revenue, and five others by appointment. The State Treasurer serves as Chairman and selects the Secretary of the Commission, who heads the administrative staff serving the Commission.
A major function of the Commission is the approval, sale, and delivery of substantially all North Carolina local government bonds and notes. A second key function is monitoring certain fiscal and accounting standards prescribed for units of local government by the Local Government Budget and Fiscal Control Act. In addition, the Commission furnishes on-site assistance to local governments concerning existing financial and accounting systems, as well as aid in establishing new systems. Educational programs and materials are also provided for local officials concerning finance and cash management.
Before any local government can incur bonded indebtedness, the proposed bond issue must be approved by the Commission. In determining whether to give such approval, the Commission may consider, among other things, the government's debt management procedures and policies, its compliance with the Local Government Budget and Fiscal Control Act, and its ability to service the proposed debt. All general obligation issues are sold on the basis of formal sealed bids submitted at the Commission's offices in Raleigh and are subsequently delivered to the successful bidder by the Commission. The Commission maintains records for all local governments of principal and interest payments coming due on bonded indebtedness in the current and future years and monitors the payments by the local governments of debt service through a system of monthly reports.
The Commission has the statutory authority to impound the books and records of any unit of local government and to assume full control of all its financial affairs (a) when the unit defaults on any debt service payment or, in the opinion of the Commission, will default on a future debt service payment if the financial policies and practices of the unit are not improved or (b) when the unit persists, after notice and warning from the Commission, in willfully or negligently failing or refusing to comply with the provisions of The Local Government Finance Act. When the Commission takes action under this authority, it is vested with all of the powers of the governing board of the unit of local government as to the levy of taxes, expenditure of money, adoption of budgets and all other financial powers conferred upon such governing board by law.
Additional information can be obtained on the NC Department of State Treasurer's website