The latest stroke of the accountant's pen at the North Carolina Office of the State Auditor (OSA) has drawn us a clearer financial picture for the Tar Heel State. As per the freshly inked report summary pouring out of the OSA – which unpacks the yearly fiscal saga that is North Carolina's ledger – we learn that the state's balance sheet has had a bit of a makeover, in a good way. Auditors, armed with calculators and fine-toothed combs, have certified the State of North Carolina's Annual Comprehensive Financial Report (ACFR) with a nod of approval, assuring number crunchers and policy makers alike that these digits indeed add up.
With a palpable sense of achievement in the air, State Auditor Dave Boliek laid it out in plain terms, stating, "The State Auditor’s Office audits the financial information used to determine whether North Carolina’s financial statements are reliable. Our team made six adjustments this year and had one material finding related to the Department of Commerce," as reported by the North Carolina Office of the State Auditor. Despite the adjustment-related stumble, Boliek ensured that all was set straight, ushering in accurate figures for public consumption.
Turning a discerning eye to the numbers, the audit revealed six material adjustments, essentially fiscal facelifts, that have been remedied post haste. The Department of Commerce, in a financial faux pas, was found to be both overstating and understating by the tune of $872.8 million and $262.5 million, respectively. These hiccups are slated to feature in the State’s forthcoming Single Audit Report. Yet, on a buoyant note, the auditors declared the State's financial statements for the fiscal year ended June 30, to be on the mark after correction was done.
But let's talk growth, because that's what the report summary is crooning about. With an uptick of $6 billion or a healthy 6.51%, North Carolina's net position is standing tall at a combined $98.15 billion - governmental activities raking in $88.67 billion and business-type activities not far behind with $9.48 billion. The state's coffers have been further lined thanks to the Individual Income Tax revenue which ballooned by $637.82 million, a hearty 3.87% increase. Flipping the page to spending, Health and Human Services saw their cash outflow growing by $5.67 billion (16.37%), while Higher Education funding ticked upwards by $884.48 million (13.51%). A nod was also given to the state's taste for sturdy infrastructure, with its investment in capital assets at a robust $76.57 billion, marking a 4.85% increase from the previous fiscal year.
The state’s financial stability has been recognized by the three major rating agencies: Standard & Poor’s, Moody’s Investors Service, and Fitch Ratings. Each has maintained North Carolina’s AAA bond rating, a distinction held by only 14 states. The OSA report notes this rating as a sign of the state’s strong financial management.
