RALEIGH — A recent audit released by the N.C. Office of the State Auditor (OSA) found that the N.C. Department of Transportation (NCDOT) did not exceed its spending plan for Fiscal Year 2023.
The NCDOT had planned to spend around $7.88 billion but only spent $7.37 billion. The NCDOT’s cash balance was $2.4 billion as of June 30, 2023, per the audit report.
Monitoring and enforcement of each of the NCDOT’s divisions was credited with the agency staying within its spending plan. Additionally, spending estimates for construction and operations used specific statistical modeling to comply with the spending plan.
The NCDOT agreed with the findings of the report.
“We will continue to improve spend plan development and execution to ensure plan compliance and optimal performance in the future,” wrote NCDOT Secretary J.R. Hopkins in the agency’s response letter. “I appreciate the engagement staff’s hard work and professionalism and believe the positive outcome of this audit is based in part to their guidance and direction during the development of the spend plan process. Please feel free to let me know if you have any questions.”
This is the second year in a row the NCDOT has received good audit news.
Last year, the OSA’s audit of the NCDOT showed the agency did not exceed its spending plan for 2022. During 2022, the NCDOT had planned to spend approximately $6.86 billion, and actually only spent $6.34 billion.
The findings of the 2022 NCDOT spending plan were an improvement over the FY 2021 audit which found the NCDOT was still at risk of exceedingly its spending plan.
In a 2020 review of the NCDOT, it was discovered that overspending amounted to $742 million, primarily attributed to insufficient planning and monitoring by the chief engineer’s office. Additionally, the agency’s spending plan did not rely on actual cost estimates for operations and projects. This financial mismanagement led to a reduction of $2 billion in construction contracts that year, along with the implementation of rolling employee furloughs.
Following the audit, a legislative hearing took place, during which then-State Auditor Beth Wood testified that cash mismanagement was a significant contributing factor.
A subsequent 2020 audit by the OSA revealed improper salary raises and adjustments within the NCDOT, totaling around $39 million.
