Upon the recommendation of a Legislative Study Commission, the OSC was established by the 1986 Session of the General Assembly effective August 1, 1986.  Prior to the establishment of the OSC, several of the State accounting system activities were fragmented among the Office of the State Auditor, the Office of State Budget and Management, and the Department of Administration.  The Office of the State Controller was established to perform certain accounting, reporting, and disbursing functions, thus forming the nucleus for the unified oversight and operation of the NCAS.

The statutory responsibilities of the OSC and the State Controller are defined in a series of articles, which include:

General Statute 143-3 through 143-3.2  State Controller has the exclusive authority for issuing all warrants; performing functions of preaudit of state agency expenditures; payment of money upon the State Treasurer; prescribing the manner in which all disbursements are made; authorizing and/or rescinding the use of disbursing accounts by an agency; requiring the form and regularity of reporting for these activities; and accounting systems development, maintenance, and coordination.

General Statute 143-11 State Controller produces reports to accompany the budget including: an itemized and complete financial statement for the State for the previous fiscal year, and a statement of special funds.

General Statute 143-17 State Controller has the responsibility to check for and control agency compliance with allotments approved by the Director of the Budget.

General Statute 143-20 State Controller has the responsibility for keeping a record of the appropriations, allotments, expenditures, and revenues of each State department, institution, board, commission, office, or other agency in any manner handling State funds.

General Statute 143-20.1 State Controller has the responsibility for publishing guidelines specifying the procedures for the state agencies to prepare annual financial statements.  State Controller also has the responsibility to combine the agencies’ financial statements into an annual Comprehensive Annual Financial Report in accordance with generally accepted accounting principles.

General Statute 143b-426.39 State Controller powers and duties are summarized in this article as follows:
• Prescribe, develop, operate, and maintain, in accordance with generally accepted principles of governmental accounting, a uniform State accounting system for all State agencies;
• Prescribe and supervise the installation of any changes in the State accounting system as necessary to secure and maintain internal control and facilitate the recording of accounting data for the purpose of preparing reliable and meaningful statements and reports;
• Maintain complete, accurate, and current financial records and balances for all funds and accounts in a manner consistent with the uniform State accounting system;
• Prescribe the uniform classification of accounts to be used by all State agencies;
• Prescribe a form for the periodic reporting of financial accounts, transactions, and other matters;
• Prescribe the manner in which disbursements of the State agencies shall be made;
• Operate a central payroll system;
• Maintain State agency records of all appropriations, allotments, expenditures, and revenues;
• Perform appropriate reconciliation with the balances and accounts kept by the State Treasurer;
• Develop and implement the State cash management policy;
• Implement a statewide accounts receivable program;
• Prepare monthly summary reports that show, by State agency, appropriations or funding sources and the results of financial transactions;
• Prepare a quarterly report on the financial condition and results of operations for the State entity for the period;
• Prepare annually, by October 31, a Comprehensive Annual Financial Report (CAFR) of the preceding fiscal year for the State entity in accordance with generally accepted accounting principles; and
• Perform additional functions and duties assigned to the Office within the scope and context of the Executive Budget Act.


General Statute 147-86.11 State Controller has the responsibility for developing and implementing a uniform statewide cash management plan for all State agencies and for monitoring the results of those plans.

General Statute 147-86.20 through 147-86.27  State Controller has the responsibility for:

• Examining the policies and procedures submitted by a State agency to determine whether they are consistent with statewide policies and procedures;
• Provide summary reports, by agency, of accounts receivable;
• Implementing a statewide setoff debt collection program to provide for collection of accounts receivable that have been written off; and
• Implementing a statewide accounts receivable program including:
• Monitoring the State’s accounts receivable collection efforts;
• Coordinating information, systems, and procedures between State agencies to maximize the collection of past due accounts receivable; and
• Adopting policies and procedures for the management and collection of accounts receivable by State agencies.