Grants Management & Compliance

North Carolina state law (N.C.G.S. 143C-6-23 and 09 NCAC 03M) requires every non-state entity that is not subject to the requirements of the Local Government Commission (LGC) that receives state or federal pass-through grant funds from state agencies to file annual reports on how those grant funds were used no later than three months after the end of the non-state entity’s fiscal year. Reporting levels are based on the level of state financial assistance from all funding sources.

There are three reporting levels with different forms to be completed at each level, and there is an audit requirement for Level 3:

Level 1: Less than $25,000
Level 2: Between $25,000 and $499,999
Level 3: ≥ $500,000
Level 3 addition: ≥ $750,000

This applies to non-profits and all other non-state entities that are not subject to the requirements of the LGC. Government entities including counties and local governments are not required to file these reports.

Reports Required for Each Reporting Level

Level 1: Less than $25,000 in state and federal pass-through funds
Certification form
State Grants Compliance Reporting for Receipts of less than $25,000
Send reports to DPS_GrantComplianceReports@ncdps.gov

Level 2: Between $25,000 and $499,999 in state and federal pass-through funds
Certification Form
State Grants Compliance Reporting for Receipts of $25,000 or more
Schedule of Receipts and Expenditures
Program Activities and Accomplishments
Send reports to DPS_GrantComplianceReports@ncdps.gov

Level 3: $500,000 or more in state and federal pass-through funds
Certification Form
State Grants Compliance Reporting for Receipts of $25,000 or more
Schedule of Receipts and Expenditures
Program Activities and Accomplishments Report
Submission of required audit in accordance with Generally Accepted Government Auditing Standards (gao.gov/yellowbook)
Send reports to DPS_GrantComplianceReports@ncdps.gov

Addition if $750,000 or more in state and federal pass-through funds (see also 2 CFR 200.501)
State Grants Compliance Reporting for Receipts of $750,000 or more (in lieu of State Grants Compliance Reporting for Receipts of $25,000 or more)
Submit audit to: harvester.census.gov/facweb/
Make copies of audit available to public.

SUMMARY OF GRANT REPORTING AND AUDIT REQUIREMENTS
Type of Grantee or Sub-grantee	$500K State Law Reporting & Audit Requirements (N.C.G.S. 143C-6-23 and 09 NCAC 03M)	LGC Audit (and reporting) Requirements (N.C.G.S. 159-34 & 20 NCAC 03)	$750K Federal Audit Requirement (2 CFR 200.501)	Comments/Notes
State Govt. Agency	No	No	Yes - if over $750K federal funds expended in FY, single audit required	Statewide Single Audit (SSA) - Office of State Auditor (OSA) conducts single audit required by federal law for entire state each year. OSA also typically conducts annual financial and compliance audits of every state agency. State agencies may also be subject to internal audits and audits from other govt. agencies for grants.
County & Local Governments. (and certain designated "public authorities" such as utilities, public hospitals, etc.)	No - exempt if they are subject to Local Government Commission (LGC) requirements	Yes - every county, city & town in NC must submit annual audit to LGC	Yes - if over $750K federal funds expended in FY, single audit required	>$100K combined fed. & state funds expended in FY = "yellow-book" audit per LGC v. >$500K state funds expended in FY = single audit required per LGC
Non-Profits (and all other non-state entities that are not subject to LGC)	Yes	No	Yes - if over $750K federal funds expended in FY, single audit required	>$500K combined fed. & state funds expended or received in FY = single (or program-specific) audit required

Reports Required for Each Reporting Level

SUMMARY OF GRANT REPORTING AND AUDIT REQUIREMENTS