§ 18B-702. Financial operations of local boards.
§18B‑702. Financial operations of local boards.
(a) Generally. Alocal board may transact business as a corporate body, except as limited bythis section. A local board shall not be considered a public authority underG.S. 159‑7(b)(10).
(b) Borrowing Money. A local board may borrow money only for the purchase of land, buildings,equipment and stock needed for the operation of its ABC system. A local boardmay pledge a security interest in any real or personal property it owns otherthan alcoholic beverages. A city or county whose governing body appoints alocal board shall not in any way be held responsible for the debts of thatboard.
(c) Audits. A localboard shall submit to the Commission an annual independent audit of itsoperations, performed in accordance with generally accepted accountingstandards and in compliance with a chart of accounts prescribed by theCommission. The audit report shall contain a summary of the requirements ofthis Chapter, or of any local act applicable to that local board, concerningthe distribution of profits of that board and a description of how thosedistributions have been made, including the names of recipients of the profitsand the activities for which the funds were distributed. A local board shallalso submit to any other audits and submit any reports demanded by theCommission.
(d) Deposits andInvestments. A local board may deposit moneys at interest in any bank ortrust company in this State in the form of savings accounts or certificates ofdeposit. Investment deposits shall be secured as provided in G.S. 159‑31(b)and the reports required by G.S. 159‑33 shall be submitted. A local boardmay invest all or part of the cash balance of any fund as provided in G.S. 159‑30(c)and (d), and may deposit any portion of those funds for investment with theState Treasurer in the same manner as State boards and commissions under G.S.147‑69.3.
(e) Compliance withCommission Rules. The Commission shall adopt, and each local board shallcomply with, fiscal control rules concerning the borrowing of money,maintenance of working capital, investments, appointment of a financialofficer, daily deposit of funds, bonding of employees, auditing of operations,and the schedule, manner and other procedures for distribution of profits. TheCommission may also adopt any other rules concerning the financial operationsof local boards which are needed to assure the proper accountability of publicfunds.
(f) Applicability ofCriminal Statutes. The provisions of G.S. 14‑90 and G.S. 14‑254shall apply to any person appointed to or employed by a local board, and anyperson convicted of a violation of G.S. 14‑90 or G.S. 14‑254 shallbe punished as a Class H felon. (1937, c. 49, ss. 10, 12; cc.411, 431; 1939, c. 98; 1957, cc. 1006, 1335; 1963, c. 1119, s. 2; 1967, c.1178; 1969, cc. 118, 902; 1971, c. 872, s. 1; 1973, cc. 85, 185; c. 1000, ss.1, 2; 1977, c. 618; 1979, c. 467, s. 20; c. 617; 1981, c. 412, s. 2; 1981 (Reg.Sess., 1982), c. 1262, s. 11; 1991, c. 459, s. 2.)