20 NCAC 03 .0505. AUDIT BILLINGS

(a)  All invoices for services rendered in an audit engagement as defined in 20 NCAC 3 .0503 shall be submitted to the Commission for approval before any payment is made.  Payment before approval is a violation of law.

(b)  Invoices to be approved shall be submitted in duplicate to the Secretary at the mailing address of the Commission.

(c)  Invoices shall be approved only under the following circumstances:

(1)           There is a valid contract;

(2)           The report of audit has been received;

(3)           The audit billing and the report of audit conform to the requirements of the contract and of this Section;

(4)           Except in the case of a fixed fee, the audit billing shows all calculations necessary to compute the fee from the rates shown in the contract; and

(5)           There are no circumstances known to the secretary indicating a failure on the part of the auditor to perform the audit as provided in this Section.

Notwithstanding the above, the Commission may approve interim billings up to a maximum of 75 percent of a fixed or maximum fee, or, in the case where there is no fixed or maximum fee, up to a maximum of 75 percent of last year's billings for the annual audit of the subject unit.  Provided however, that the Secretary or a deputy secretary may approve a higher or lower amount, on an interim billing if he finds that such would be more equitable under a particular set of circumstances.

 

History Note:        Authority G.S. 159‑3(f);

Eff. February 1, 1976;

Readopted Eff. September 23, 1977.