Highlights of Recent Audits and Reports

  • Identified nearly $4.9 million in questioned costs at the government funded Four-County Community Services nonprofit agency. The former Executive Director of Four-County received more than $215,000 in questionable payments, while employees received nearly $641,000 in improperly paid bonuses.
  • Found that the state Department of Administration could improve its revenue stream by establishing an on-line bidding process to sell surplus property at the best price. The department also failed to adequately safeguard its surplus property and motor fleet parts inventory.
  • Discovered that the North Carolina Board of Pharmacy does not inspect all pharmacies on a regular basis. The failure to regularly inspect pharmacies increases the risk of problems and violations that could threaten public health and safety.
  • Found that the NC Agricultural Finance Authority lost nearly $1.8 million over a four-year period as its loan volume steadily declined. The authority had made only one loan in the fiscal year audited.
  • Reported that the North Carolina Rural Economic Development Center retained about $20 million in interest earnings from undisbursed state funds, did not verify job creation or other performance measures for at least five grants, failed to diligently enforce grantee reporting requirements, and paid its executive unreasonable salaries.
  • Found that only 3 percent of the elevators with violations in 2012 had a follow-up inspection by the state Department of Labor as required by law. The Department’s Wage Bureau did not complete follow up investigations on agreements made with companies to correct violations of labor laws.
  • Disclosed that the Administrative Office of the Courts did not make detailed driving while impaired case data readily available to the public as intended by the law. The AOC also did not evaluate driving while impaired dismissal rate anomalies or determine causes of exceptions in DWI dismissal rates.
  • Determined that a Department of Public Instruction analyst knowingly submitted false travel reimbursement requests totaling over $3,400 during a nine-month period. Investigators also determined that a former Division Director engaged in discussions and activity regarding a return to state service within six months of her retirement date in violation of state law.
  • Discovered that an instructor inappropriately gave a student a boat motor owned by Cape Fear Community College. In addition, the instructor falsified annual inventory records by indicating that the motor remained on the college’s campus when it was in the possession of the student.
  • Found that an employee of Durham Technical Community College used college resources to manage her Internet businesses. She used a college computer to manage her bird supply internet store and sell Amway products during working hours.
  • Found that the owner of a child care facility transferred ownership to an employee to avoid a state sanction and possible permanent disqualification from participating in the State Child Care Subsidy Program. The original owner maintained complete control of the organization and attempted to conceal her involvement with the business by lying to state officials investigating the facility.
  • Carried out legislatively requested audit of Medicaid that identified administrative costs $180 million higher than peer group average, poor budget forecasting and disregard for budget directives.
  • Found questionable expenses of more than $12,000 by the mayor of Princeville, as well as two suspect contracts worth thousands of dollars more. The case has been referred to law enforcement officials and the IRS.
  • Discovered more than $12 million in uncollected fines at the Department of Transportation.
  • Identified $10.5 million in annual cost-savings for prisoner health care at the state Department of Correction.
  • Identified millions of dollars in uncollected fines, fees, and penalties at the Administrative Office of the Courts.
  • Found that implementation of the Department of Health and Human Services Medicaid Management Information System was $320 million over budget and nearly two years behind schedule.
  • Discovered that the former executive director of the Historically Minority Colleges and Universities Consortium at North Carolina Central University diverted more than $1 million to an undisclosed, private bank account. The former executive director and former provost were indicted for embezzling $349,000 of these diverted funds.
  • Identified $580,000 in improper overtime payments made to employees at the Department of Health and Human Services working on the Medicaid computer system.
  • Discovered poor oversight of $80 million in grants administered by the Department of Commerce.
  • Found that a daycare administrator in Lenoir and Greene counties created and submitted false tax, employment, insurance, retirement and payroll information to increase Smart Start and More at Four funding. An out-of-court settlement closed one facility and forced the owner to relinquish her administrative role in the organization. DHHS sought $191,000 in restitution.
  • Uncovered gross mismanagement regarding the contract and operation of the North Carolina Department of Transportation Rural Vanpool Program. DOT allowed the contractor to operate the program without a contract for more than 11 years. Investigators discovered the contractor billed DOT at least $163,272 for personal mileage fees, backup van fees, and insurance deductibles that appeared excessive or unreasonable.
  • Spurred legislative action to improve oversight of the State Health Plan and statewide contract management practices.
  • Helped improve transparency and public access to the Department of Environment and Natural Resources environmental permitting process.
  • Identified fraud and cost savings opportunities related to employee travel at the Department of Public Instruction.
  • Determined that the North Carolina High School Athletic Association and Chatham County Schools intentionally misrepresented the employment of the Athletic Association’s Associate Commissioner to increase his retirement benefits.
  • Conducted legislative requested audits of the Roanoke Island Commission; the N.C. Indian Cultural Center; the Department of Public Instruction administration's School Breakfast Program; and Legal Aid of North Carolina's Farmworker Program.