NC H17

State Auditor must include corrective action recommendations in audit reports when a state agency fails to follow required practices under G.S. 147-64.6(b).

Auditor shall conduct follow-up with state agencies one year after submitting recommendations to determine if significant progress has been made in correcting deficiencies.

If a state agency fails to make significant progress, the Auditor must report to legislative committee chairs with recommendations for legislative action, including requiring agency testimony, modifying agency authority, adjusting appropriations, or other lawful action.

Beginning January 1, 2018, the State Auditor must publish an annual report on the Auditor's website identifying all findings of deficiencies from the prior calendar year.

Annual deficiency reports must categorize findings by those resulting in financial loss to the State, those involving failure to comply with state law regarding public fund expenditure, and all other findings.