NCSB Journal Summer 2026

BAR UPDATES

2026 First Quarter Random Audits

Lawyers selected for random audit are drawn from a randomized list of all active lawyers in the state. Audits for the first quarter of 2026 were conducted in Chatham, Guilford, John ston, Mecklenburg, Orange, Pitt, Union, Wake, Wilson, and Yancey Counties. One audit was conducted in Yancey County; two each were conducted in

Chatham, Orange, and Wilson counties; three each were conducted in Johnston, Pitt, and Union Counties; six were con ducted in Mecklenburg County; ten were conducted in Guilford County, and 14 were conducted in Wake County. Following are the results of the audits. 1. 33% failed to provide a copy of the Bank Directive regarding checks presented against insufficient funds; 2. 30% failed to take the required one hour trust account CLE course; 3. 28% failed to maintain images of cleared checks or maintain them in the re quired format; 4. 26% failed to sign, date, and/or main tain reconciliation reports; 5. 17% failed to complete quarterly transaction reviews; 6. Up to 10% failed to; • properly identify client on confirma tions of wire/electronic/online transfers of funds; • properly complete monthly reconcili ations; • properly complete quarterly reconcili ations; • review bank statements and cancelled checks each month; • prevent over-disbursing funds from the trust account resulting in negative client balances; • identify the client and source of funds, when the source was not the client, on the original deposit slip; • identify the client from whose balance the funds were drawn on the face of each check; • escheat unidentified/abandoned funds as required by GS 116B- 53; • promptly remove earned fees or cost reimbursements. 7. Areas of consistent rule compliance; • properly maintained a ledger for each person or entity from whom or for whom trust money was received; • properly prevented bank service fees being paid with entrusted funds;

• properly maintained a ledger of lawyer’s funds used to offset bank service fees; • properly recorded the bank date of de posit on the client’s ledger; • promptly remitted to clients’ funds in possession of the lawyer to which clients were entitled; • properly signed trust account checks (no signature stamp or electronic signature used); • properly maintained records that are retained only in electronic format; • provided written accountings to clients at the end of representation or at least an nually if funds were held for more than 12 months; • properly used business size checks con taining the Auxiliary On-Us field; • properly removed signature authority from employee(s) responsible for perform ing monthly or quarterly reconciliations; • properly deposited funds received with a mix of trust and non-trust funds into the trust account. Based on the geographic plan for 2026, audits for the second quarter will be con ducted in Brunswick, Cabarrus, Cumber land, Forsyth, Mecklenburg, New Hanover, Robeson, Rowan, and Wake counties. n

Bar Exam Applicants (cont.)

Sarah Young Arden,NC Dana Young

Chapel Hill, NC Timothy Younger Hampton, VA Olivia Yukon Charleston, SC William Zimmerman Los Angeles, CA Skylar Zimny Woodstock, IL

SUMMER 2026

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