§ 159-39. Special regulations pertaining to public hospitals.
Part4. Public Hospitals.
§ 159‑39. Special regulations pertaining topublic hospitals.
(a) For the purposes of this Part, "public hospital"means any hospital that
(1) Is operated by a county, city, hospital district, orhospital authority, or
(2) Is owned by a county, city, hospital district or hospitalauthority and operated by a nonprofit corporation or association, a majority ofwhose board of directors or trustees are appointed by the governing body of acounty, city, hospital district, or hospital authority, or
(3) On whose behalf a county or city has issued and hasoutstanding general obligation or revenue bonds, or to which a county or citymakes current appropriations (other than appropriations for the cost of medicalcare to prisoners or indigents).
(b) Except as provided in this Part, none of the provisions ofParts 1, 2, and 3 of this Article apply to public hospitals.
(c) Each public hospital shall operate under an annual balancedbudget. A budget is balanced when the sum of appropriations is equal to the sumof estimated net revenues and appropriated fund balances.
(d) The governing board of each public hospital shall appoint ordesignate a finance officer, who shall have the following powers and duties:
(1) He shall prepare the annual budget for presentation to thegoverning board of the public hospital and shall administer the budget asapproved by the board.
(2) He shall keep the accounts of the hospital in accordancewith generally accepted principles of accounting.
(3) He shall prepare and file a statement of the financialcondition of the hospital as revealed by its accounts upon the request of thehospital governing board or the governing board of any county, city, or otherunit of local government that has issued on behalf of the hospital and hasoutstanding its general obligation or revenue bonds or makes currentappropriations to the hospital (other than appropriations for the cost ofmedical care to prisoners or indigents).
(4) He shall receive and deposit all moneys accruing to the hospital,or supervise the receipt and deposit of money by other duly authorized officersor employees of the hospital.
(5) He shall supervise the investment of idle funds of thehospital.
(6) He shall maintain all records concerning the bonded debt ofthe hospital, if any, determine the amount of money that will be required fordebt service during each fiscal year, and maintain all sinking funds, but shallnot be responsible for records concerning the bonded debt of any county, city,or other unit of local government incurred on behalf of the hospital.
(e) The Local Government Commission has authority to issue rulesand regulations governing procedures for the receipt, deposit, investment,transfer, and disbursement of money and other assets by public hospitals, mayinquire into and investigate the internal control procedures of a publichospital, and may require any modifications in internal control procedureswhich, in the opinion of the Commission, are necessary or desirable to preventembezzlements, mishandling of funds, or continued operating deficits.
(f) The accounting system of a public hospital shall be sodesigned that the true financial condition of the hospital can be determinedtherefrom at any time. As soon as possible after the close of each fiscal year,the accounts shall be audited by a certified public accountant or by anaccountant certified by the Local Government Commission as qualified to auditlocal government accounts. The auditor shall be selected by and shall reportdirectly to the hospital governing board. The audit contract or agreement shallbe in writing, shall include all its terms and conditions, and shall besubmitted to the secretary of the Local Government Commission for his approvalas to form, terms and conditions. The terms and conditions of the audit shallinclude the scope of the audit, and the requirement that upon completion of theexamination the auditor shall prepare a written report embodying financialstatements and his opinion and comments relating thereto. The finance officershall file a copy of the audit with the secretary of the Local GovernmentCommission and with the finance officer of any county, city, or other unit oflocal government that has issued on behalf of the hospital and has outstandingits general obligation or revenue bonds or makes current appropriations to thehospital (other than appropriations for the cost of medical care to prisonersor indigents).
(g) A public hospital may deposit or invest at interest all orpart of its cash balance pursuant to G.S. 159‑30 and may deposit anyfunds held in reserves or sinking funds, or any funds not required forimmediate disbursement, with the State Treasurer for investment pursuant toG.S. 147‑69.2.
(h) Public hospitals are subject to G.S. 159‑31 withregard to selection of an official depository and security of deposits.
(i) Public hospitals are subject to G.S. 159‑32 withregard to daily deposits.
(i1) Public hospitals may accept electronic payments pursuant toG.S. 159‑32.1.
(j) Public hospitals are subject to G.S. 159‑33 withregard to semiannual reports to the Local Government Commission on the statusof deposits and investments.
(k) Any hospital district or hospital authority havingoutstanding general obligation or revenue bonds is subject to G.S. 159‑35,159‑36, 159‑37, and 159‑38. (1973, c. 474, s. 28.1; c. 1215; 1999‑434, s. 5.1; 2005‑417,s. 1.)