§ 122C-125. Area Authority financial failure; State assumption of financial control. - North Carolina Statutes

§122C‑125.  Area Authority financial failure; State assumption offinancial control.

At any time that the Secretaryof the Department of Health and Human Services determines that an areaauthority is in imminent danger of failing financially and of failing toprovide direct services to clients, the Secretary, after providing writtennotification of the Secretary's intent to the area board and after providingthe area authority an opportunity to be heard, may assume control of thefinancial affairs of the area authority and appoint an administrator toexercise the powers assumed.  This assumption of control shall have the effectof divesting the area authority of its powers as to the adoption of budgets,expenditures of money, and all other financial powers conferred in the areaauthority by law. County funding of the area authority shall continue when theState has assumed control of the financial affairs of the area authority.  Atno time after the State has assumed this control shall a county withdraw fundspreviously obligated or appropriated to the area authority.  The Secretaryshall adopt rules to define imminent danger of failing financially and offailing to provide direct services to clients.

Upon assumption of financialcontrol, the Department shall, in conjunction with the area authority, developand implement a corrective plan of action and provide notification to the areaauthority's board of directors of the plan.  The Department shall also keep thecounty board of commissioners and the area authority's board of directorsinformed of any ongoing concerns or problems with the area authority'sfinances. (1995, c. 507, s. 23.2; 1995 (Reg. Sess., 1996), c.749, s. 7; 1997‑443, s. 11A.118(a).)