North Carolina State Auditor

The State Auditor of North Carolina is a statewide elected office in the U.S. state of North Carolina. The state auditor is a constitutional officer responsible for overseeing and reviewing the financial accounts of all state government agencies. The auditor also conducts performance audits of state agencies, ensures state agencies' accounting conforms with Generally Accepted Accounting Principles, evaluates the integrity of computer-generated information, and investigates the misuse of state funds or property. The incumbent is Jessica Holmes, who became state auditor on December 16, 2023.

Auditors have been employed by North Carolina's government since it was an English colony. The Office of Auditor of Public Accounts was created in 1862. Six years later it was replaced by the Office of State Auditor, filled by a candidate popularly elected every four years and not subject to term limits. The state auditor was responsible for several accounting and fiscal duties for much of the position's existence, though these were assigned elsewhere in the 20th century. The state auditor leads the Department of State Auditor and sits on the North Carolina Council of State.

History of the office
The Fundamental Constitutions of Carolina, adopted on March 1, 1669, for the Province of Carolina, provided for twelve auditors to maintain various accounts, but there is no evidence that the offices were ever brought into use. Over the following decades, boards of auditors were appointed by the North Carolina General Assembly and the King of England's comptrollers to attend to matters in various localities as stipulated by the English crown. In 1782 the General Assembly appointed Richard Caswell as the Comptroller of the State of North Carolina, responsible for the maintenance of public accounts. The assembly also established ten boards of auditors for different areas of the state.

In 1862 the General Assembly altered the previous system by establishing the Office of Auditor of Public Accounts, who was to be elected every two years by the legislature. The post was abolished in 1865. The North Carolina Constitution of 1868 created the Office of State Auditor, superseding the auditor of public accounts and abolishing the post of comptroller. The auditor was to "superintend the fiscal affairs of the State; examine and settle accounts of persons indebted to the State; liquidate claims by persons against the State; and to draw warrants on the State Treasurer for moneys to be paid out of the treasury." The document also moved the office out of the legislative branch of government and into the executive branch, stipulating that its holder was to be popularly elected every four years.

The auditor's original duties included writing an annual report on state revenue and spending—including projections for the following fiscal year, maintaining general accounts of the state, recommending improvements to state fiscal management, settling claims against the state and its own claims against persons, certifying treasury balances, and issuing warrants for treasury disbursements. In 1872 the auditor was made responsible for compiling local tax lists for county sheriffs to aid in their collection and ascertaining that sheriffs properly collected. The office was relieved of these responsibilities in 1923. In 1921 the General Assembly empowered the auditor to audit and adjust public accounts and tasked them with overseeing all state accounting systems. In 1955 the assembly transferred the general accounting duties and responsibility for treasury disbursement warrants to the Budget Bureau. In 1971 North Carolina adopted a new constitution which altered the office little, though the Executive Organization Act of 1971 created the Department of State Auditor. In 1974 the General Assembly authorized the state auditor to conduct operational audits of state agencies.

Ralph Campbell Jr., sworn in to the office of state auditor in 1993, was the first black person ever elected to a statewide executive office in North Carolina. During his tenure he equipped auditing staff with computers. Les Merritt, who assumed office in 2005, was the first Certified Public Accountant to serve as state auditor. Beth Wood, sworn in 2009, was the first woman to hold the office. Incumbent Jessica Holmes, sworn in on December 16, 2023, is the first black woman to hold the office.

Powers, duties, and structure
The state auditor is a constitutional officer. Article III, Section 7, of the Constitution of North Carolina stipulates the popular election of the state auditor every four years. Unlike most of the 18 other states with an elected auditor, North Carolina does not require candidates for the office to be Certified Public Accountants. The office holder is not subject to term limits. In the event of a vacancy in the office, the Governor of North Carolina has the authority to appoint a successor until a candidate is elected at the next general election for members of the General Assembly. Per Article III, Section 8 of the constitution, the auditor sits on the Council of State. The auditor is ex officio a member of the Local Government Commission, the Capital Facilities Finance Agency, the Debt Affordability Advisory Committee, and several other bodies. They are a nonvoting member of the Office of State Budget and Management's Council of Internal Auditing. They are fifth in line of succession to the governor. As with all Council of State officers, the auditor's salary is fixed by the General Assembly and cannot be reduced during their term of office. In 2022, the auditor's annual salary was US$146,421.

The state auditor leads the Office of the State Auditor. The department is split into a general administration division and an auditing division. The former division is led by the state auditor's chief deputy and handles administrative concerns including personnel matters, internal budgeting and procurement, and intra-department coordination. The latter division is headed by a deputy state auditor and several audit managers and is responsible for conducting audits. As of December 2022, the department has 124 employees retained under the terms of the State Human Resources Act. The department is headquartered in the Albemarle Building in downtown Raleigh. It also maintains offices in Pitt, New Hanover, Forsyth, and Buncombe counties.

Article V, Chapter 147 of the North Carolina General Statutes grants the state auditor broad authority to examine all documents and financial affairs of all state agencies. The official is also responsible for auditing federal grant programs in the state and can audit private entities which receive state funds. The state auditor works with the state controller to compile the state's annual comprehensive financial report and, as required by federal law, issues the Statewide Single Audit Report. The auditor's office performs various financial and technological audits and other investigations, including performance audits of state agencies, ensuring state agencies' accounting conformity with Generally Accepted Accounting Principles, evaluations of the integrity of computer-generated information, and inquiries into the misuse of state funds or property. The Department of State Auditor maintains a tip line to collect reports on government malfeasance. It can conduct special investigations at the request of the General Assembly or the governor. The auditor is empowered to summon people to produce records and answer questions under oath, but does not have law enforcement powers and cannot bring criminal charges against individuals. The office does not conduct personal tax audits. The auditor can request advisory opinions on legal matters from the North Carolina Attorney General.