He referenced NH RSA 29:8-b about Tax Anticipation Notes. Carroll County has long utilized tax anticipation notes, as taxes are not collected from the county towns until December.
RSA 29:8b requires that the county not spend the money raised by the TAN on anything other then what was approved by the delegation budget for that financial year.
McCarthy is asserting that TAN funds were used for things other then approved appropriations, which may or may not be true. I did not provide a link to RSA 29:8-b because it is not yet on the books. Governor Sununu signed the new section into law on May 7th 2017 and it won't be effective until July 8th 2017. As this amendment to the statute was not in effect when the audit was undertaken, McCarthy should not have accused the county of violating the law nor suggest that the auditor missed a " violation" by the county in her work.