§ 159-42. Special regulations pertaining to public housing authorities.
Part7. Public Housing Authorities.
§ 159‑42. Special regulations pertaining topublic housing authorities.
(a) Definition. As used in this Part, the term "housingauthority" means any entity as defined in G.S. 157‑3(1) that is notsubject to G.S. 157‑4.2.
(b) Applicability. Except as provided in this Part, none ofthe provisions of Parts 1, 2, or 3 of this Article apply to housing authoritiesin compliance with this Part.
(c) Annual Budget. Each housing authority shall operate underan annual budget. The budget shall take the form of estimated revenues plusfund balances available for the program, as defined by the U.S. Department ofHousing and Urban Development regulations or their successors, that are equalto or greater than estimated expenditures. The proposed budget shall beavailable for public inspection in a manner consistent with G.S. 159‑12(a).Before adopting the budget, the housing authority governing board shall hold apublic hearing at which time any persons who wish to be heard on the budget mayappear. The governing board shall cause notice of the public hearing to bepublished in a newspaper of general circulation in the area once a week for twoconsecutive weeks prior to the public hearing.
(d) Project Ordinances. The annual budget shall not includethose estimated revenues and expenditures accounted for in a project ordinance.A housing authority shall adopt a project ordinance, as defined by G.S. 159‑13.2,for those programs which span two or more fiscal years. The form of the projectordinance shall be in accordance with the relevant funding agency guidelinesfor that project. The estimated revenues plus fund balances available for aproject shall be equal to or greater than the estimated expenditures. Theestimated revenues and expenditures related to approved projects for a fiscalyear may be included in the annual budget on an informational basis.
(e) Finance Officer. The housing authority governing boardshall appoint or designate a finance officer with the following powers andduties:
(1) Preparation of the annual budget for presentation to thegoverning board.
(2) Administration of the approved budget.
(3) Maintenance of the accounts and other financial records inaccordance with generally accepted principles of accounting.
(4) Preparation and filing of statements of the financialcondition, at least annually and at other times as requested by the governingboard.
(5) Receipt and deposit, or supervision of the receipt anddeposit, of all moneys accruing to the housing authority.
(6) Supervision of the investment of the idle funds of thehousing authority.
(7) Maintenance of all records concerning the bonded debt of thehousing authority, if any.
(8) Maintenance of any sinking funds of the housing authority.
(f) Accounting Procedures. A housing authority must complywith federal rules and regulations issued by the U.S. Department of Housing andUrban Development pertaining to procedures for the receipt, deposit,investment, transfer, and disbursement of money and other assets. TheCommission may inquire into and investigate, with reasonable cause, theinternal control procedures of a housing authority. The Commission may requireany modifications in internal control procedures which, in the opinion of theCommission, are necessary or desirable to prevent embezzlement, mishandling offunds, or continued operating deficits.
(g) Audits. The accounting system of a housing authority shallbe so designed that the true financial condition of the housing authority canbe determined at any time. As soon as possible after the close of each fiscalyear, the accounts shall be independently audited by a certified publicaccountant. The auditor shall be selected by the housing authority governingboard and shall report directly to that body. The audit contract or agreementshall be in writing and shall include all its terms and conditions. The termsand conditions of the audit shall include the scope of the audit and therequirement that upon completion of the examination the auditor shall prepare awritten report embodying the financial statements and the auditor's opinion andcomments relating thereto. The finance officer shall file a copy of the auditwith the Secretary of the Commission.
(h) Bonding of Employees. The bonding requirements of G.S. 159‑29shall apply to the finance officer and those employees of the housing authorityhandling or having custody of more than one hundred dollars ($100.00) at anyone time or those employees who have access to the inventories of the housingauthority.
(i) Investments. A housing authority may deposit or invest,at interest, all or part of its cash balance pursuant to U.S. Department ofHousing and Urban Development regulations.
(j) Official Depository. Housing authorities shall complywith G.S. 159‑31, except in those circumstances where the statute is inconflict with U.S. Department of Housing and Urban Development guidance, whichshall control.
(k) Deposits and Payments. Housing authorities shall complywith G.S. 159‑32, 159‑32.1, and 159‑33. (2001‑206, s. 1.)