The State of North Carolina is responsible, through financial audit, for the proper accounting of federal HPF grants. CLG share monies in accordance with Office of Management and Budget Circular A-102, Attachment P, "Audit Requirements." The HPO is prepared to provide assistance to all local governments in developing and implementing financial management systems which meet the requirements listed below. To be eligible to receive a portion of the local share of the HPF, the state requires that each CLG:

1. Maintain adequate financial management systems which:

   a. Meet federal standards specified in Office of Management and Budget Circular A-102, Attachment G, "Standards for Grantee Financial Management Systems."
   
   b. Can be audited in accordance with the General Accounting Office's Standards for Audit of Government Organizations, Programs, Activities, and Functions.

   c. Are periodically evaluated by the HPO.

2. Adhere to all requirements of the National Register Programs Manual, and;
   
   
3. Adhere to any requirements mandated by Congress regarding the use of such funds.