The financial stewardship of North Carolina is under scrutiny following a recent audit of federal grants by the Office of the State Auditor (OSA). The OSA’s 2024 Statewide Single Audit report, a meticulous examination of the $25.65 billion that coursed through North Carolina entities, has signaled out irregularities, highlighting $8.5 million in federal funding that may not have been used as intended.
State Auditor Dave Boliek stated, “These results have been delivered to the governor, agency managers, and the North Carolina General Assembly,” as findings highlight the need for accountability, with Boliek’s office working to ensure that tax dollars are used responsibly and effectively for the benefit of North Carolina residents. The report points out an issue with the North Carolina Department of Commerce, where $8.5 million intended for Unemployment Insurance administration was misapplied by attributing expenses to an incorrect period as specified by the awards, as reported by the Office of the Auditor.
A closer examination reveals gaps in the oversight of federal funds. The Department of Commerce did not fully oversee $55 million designated for employment and training programs. The North Carolina Department of Health and Human Services (DHHS) also did not adequately supervise $106.5 million allocated to address substance abuse and the opioid crisis. The DHHS Division of Mental Health, Developmental Disabilities, and Substance Use Services did not complete necessary monitoring activities, including the required on-site visits, for six Local Management Entities/Managed Care Organizations (LME/MCOs) managing substantial substance and opioid abuse funds.
According to the Office of the Auditor, a total of 22 programs across 21 state entities were evaluated in this thorough audit. In the fiscal year ending June 30, 2024, North Carolina distributed $36.58 billion in federal awards through 618 programs, managed by 103 state entities. The full 229-page report is available for a detailed overview of the state’s fiscal operations and oversight approach.
The release of this audit is expected to have an impact on the North Carolina government. The report identifies fiscal irregularities and lays the groundwork for corrections that State Auditor Boliek and his office are addressing. It provides an opportunity for reflection and potential administrative changes, with the goal of ensuring future federal expenditures are managed effectively and benefit all citizens in the state.
