Grants Management & Compliance

North Carolina state law (N.C.G.S. 143C-6-23 and 09 NCAC 03M) requires every non-state entity that is not subject to the requirements of the Local Government Commission (LGC) that receives state or federal pass-through grant funds from state agencies to file annual reports on how those grant funds were used no later than three months after the end of the non-state entity’s fiscal year.  Reporting levels are based on the level of state financial assistance from all funding sources.
 

Effective 7/1/24, there are two reporting levels with different forms to be completed at each level, and there is an audit requirement for Level 2: 

Level 1: Between $1 and $749,999 
Level 2: ≥ $750,000

This applies to non-profits and all other non-state entities that are not subject to the requirements of the LGC.  Government entities including counties and local governments are not required to file these reports. 

Reports Required for Each Reporting Level:

Level 1: Between $1 and $749,999 in state and federal pass-through funds

Certification Form

Schedule of Receipts and Expenditures

Program Activities and Accomplishments 

Send reports to: DPS_GrantComplianceReports@ncdps.gov

Level 2: $750,000 or more in state and federal pass-through funds

Certification Form

Schedule of Receipts and Expenditures

Program Activities and Accomplishments Report

Submission of required single (or program-specific) audit in accordance with Generally Accepted Government Auditing Standards (gao.gov/yellowbook)

Send reports to DPS_GrantComplianceReports@ncdps.gov

Addition if $750,000 or more in federal expenditures
(see also 2 CFR 200.501)

Submit federally required audit to: harvester.census.gov/facweb/

Make copies of audit available to public.

 

Summary of Grant Reporting and Audit Requirements
Effective 7-1-24
Type of Grantee LGC Audit (and reporting) Requirements (N.C.G.S. 159-34 & 20 NCAC 03) Level 1 - 2 State Law Reporting & Audit Requirements (N.C.G.S. 143C-6-23 and 09 NCAC 03M) $750K Federal Audit Requirement (2 CFR 200.501) Comments/Notes
State Govt. Agency No No Yes - if equal/over $750K federal funds expended in FY, single audit required Statewide Single Audit (SSA) - OSA conducts single audit required by federal law for entire state each year.  OSA also typically conducts annual financial and compliance audits of every state agency.  State agencies may also be subject to internal audits and audits from other govt. agencies for grants.
County & Local Govts. (and certain designated "public authorities" such as utilities, public hospitals, etc.) Yes - every county, city & town in NC must submit annual audit to LGC No - exempt if they are subject to LGC requirements Yes - if equal/over $750K federal funds expended in FY, single audit required ≥$100K combined fed. & state funds expended in FY = "yellow-book" audit per LGC v. ≥$500K state funds expended in FY = single audit required per LGC.
Non-Profits (and all other non-state entities that are not subject to LGC) No Yes Yes - if equal/over $750K federal funds expended in FY, single audit required ≥$750K combined fed. & state funds expended or received in FY = single (or program-specific) audit required under state law.  $750K fed. funds expended in FY, single (or program-specific) audit must also be filed online in Federal Audit Clearinghouse.