§ 147-64.4. Definitions. - North Carolina Statutes

§ 147‑64.4. Definitions.

The words and phrases used inthis Article have the following meanings:

(1)        "Audit". –An independent review or examination of government organizations, programs,activities, and functions. The purpose of an audit is to help ensure fullaccountability and assist government officials and employees in carrying outtheir responsibilities. The elements of such an audit are:

a.         Financial andcompliance: to determine whether financial operations are properly conducted,whether the financial reports of an audited entity are presented fairly, andwhether the entity has complied with applicable laws and regulations; and,

b.         Economy andefficiency: to determine whether the entity is managing or utilizing itsresources (such as personnel and property) in an economical and efficientmanner and the causes of any inefficiencies or uneconomical practices,including inadequacies in laws and regulations, management information systems,administrative policies and procedures, or organizational structures; and,

c.         Program results: todetermine whether the desired results or benefits are being achieved, whetherthe objectives established by the General Assembly or other authorizing bodyare being met, and whether the agency has considered alternatives which mightyield desired results at lower costs.

d.         An audit may includeall three elements or only one or two. It is not intended or desirable thatevery audit include all three. Economy and efficiency and program result auditsshould be selected when their use will meet the needs of expected users ofaudit results.

(2)        "Accountingsystem". – The total structure of records and procedures which discover,record, classify, and report information on the financial position andoperating results of a governmental unit or any of its funds, balanced account groups, and organizational components.

(3)        "Federalagency". – Any department, agency, or instrumentality of the federalgovernment and any federally owned or controlled corporation.

(4)        "Stateagency". – Any department, institution, board, commission, committee,division, bureau, officer, official or any other entity for which the State hasoversight responsibility, including but not limited to, any university, mentalor specialty hospital, community college, or clerk of court. (1983,c. 913, s. 2; 1987, c. 564, s. 31.)