105.2 - Statewide Accounting Policy - Separately Issued Fund Financial Statements
Policy Area: Accounting and Financial Reporting
Policy Sub Area: Statewide Financial Reporting
Authority: GS 143B-426.39
Effective Date: 7/1/2006
Last Revision Date: 4/30/2017
Policy Owner/Division: Statewide Accounting
Policy
The following applies to separately issued and audited GAAP-based fund (or departmental) financial statements issued for reporting units that are not legally separate:
State agencies, universities, community colleges, and other component units may issue separate GAAP-based financial statements for one or more individual funds (or departments), which are intended to represent financial activities of the specific fund(s) (or departments) and not the State or component unit as a whole. These presentations should apply all relevant GAAP to the extent those principles apply to the fund (or departmental) financial statements. Thus, these financial statements should include all relevant GAAP financial statements, note disclosures, and required supplementary information, including management's discussion and analysis (MD&A). The MD&A should discuss all topics required by GAAP (as applicable).
For example, this policy applies to the following reporting units that have separately issued and audited GAAP-based financial statements:
- N.C. Education Lottery (enterprise fund)
- USS North Carolina Battleship Commission (enterprise fund)
- Licensing boards (enterprise funds)
- 911 Fund (special revenue fund)
- N.C. Turnpike Authority (enterprise fund)
- Workers’ Compensation Fund (enterprise fund)
- Departmental Audits (Health and Human Services, Public Instruction, Public Safety, Revenue, Transportation, and Treasurer)
Procedures
N/A
Accounting Guidance
AICPA Audit and Accounting Guide: State and Local Governments, Chapter 15
GFOA Recommended Practice: Including Management's Discussion and Analysis in Departmental Reports
Related Documents (Memos/Forms)
The following resources are available from the OSC webpage. The links are below.
- Cash Flows template using the direct method
- MD&A requirements
- State Auditor Forms
Revision History
- 1/31/2017 - Update links
- 4/30/2017 - Added N.C. Turnpike Authority, Workers’ Compensation Fund, and Departmental Audits to the Policy section. Deleted University bookstores. Updated the Accounting Guidance section.