(The Center Square) – North Carolina scored poorly overall and is ranked No. 48 in the nation in financial transparency in a report released this week by Truth in Accounting.
The report says the state “did not have audited financial reports for their largest pension plans, and a high percentage of complex and convoluted deferred items distorted their financial positions.”
The report grades states on audit quality, timeliness, pension reporting and accounting practices it says can distort a government’s financial position. Data is based on 2024 information available as of Aug. 25, 2025.
The report said North Carolina lost 25 points on its transparency score “because their largest pension plans do not issue separate audited financial reports.”
The state scored 45 from a possible 100 points. Georgia (44) and Connecticut (40) were the only states worse. New Mexico (87), West Virginia (87) and Indiana (86) led.
“Timely financial information is crucial during government decision-making, such as budgeting,” the report said. “However, most states filed their 2024 annual financial reports after completing their budget process.”
The Center Square’s request for response on Tuesday morning from the state’s treasurer and auditor remained unfulfilled Friday morning.
Truth in Accounting draws praise for its analysis in exposing hidden liabilities, full-accrual accounting and taxpayer awareness. The report draws criticism for perceived ideological bias, reporting windows and oversimplification of pension dynamics.
