NC S406

Modifies the uniform budget format to require local school administrative units to report expenditures from local funds by program report code and object code, distinguishing between county appropriations and other local funds.

Requires superintendents to describe projected expenditures from local funds by program report code and object code in annual budget preparation.

Permits county commissioners to allocate local funds by program report code and allows boards of education to submit projected expenditures in this format; commissioners must approve budget amendments that increase or decrease county appropriations to a program report code by 25% or more (or lesser percentage if specified).

Requires annual independent audits to include a comparison of budgeted and actual expenditures by program report code and object code, with audit reports filed within 30 days of completion.

Mandates local school administrative units report audit results to the State Board of Education within 60 days of completion; the Department of Public Instruction must post this information on its website categorized by unit to enhance transparency.