TITLE:title
Appointment of Deputy Finance Officer
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INFORMATION CONTACT:
Beverly Liles, Finance Director, 704-283-3675
ACTION REQUESTED:
Appoint John Buchanan, Assistant Finance Director, to serve as a “Deputy Finance Officer” in order to pre-audit obligations
PRIOR BOARD ACTIONS:
None
BACKGROUND:
G.S. 159-8 directs that no county "may expend any moneys…except in accordance with a budget ordinance or project ordinance."
The pre-auditing of obligations, required by G.S. 159-28(a), is a principal legal mechanism for assuring compliance with the budget ordinance and each project ordinance. The pre-audit rule provides that no obligation may be incurred in an activity accounted for in a fund project ordinance unless two requirements are met. First, the obligation must be authorized; that is, one of the ordinances must contain an appropriation to cover it. Second, the authorization must not be exhausted; sufficient unspent and unencumbered funds must remain in the appropriation to meet the obligation when it comes due. Only if both requirements are met is the obligation validly incurred.
Completion of this two-stage review is evidenced by placing the finance officer's certificate on the obligations. Having the deputy finance officer authorized to pre-audit obligations is important and such delegation will occur only with the approval of the County's finance officer and only when adequate internal controls are built into the payment procedures that are used
FINANCIAL IMPACT:
None