DAVE-2025-DHHS

According to Office of State Budget and Management (OSBM) reports, DHHS generated $386 million in lapsed salary funds in SFY 2024-2025, with $151 million from state appropriations and $235 million from receipts and federal funding.

Through analysis of North Carolina Financial System (NCFS) data, OSA determined that vacancy-related lapsed salary funds for the month of September 2025 alone are conservatively estimated at $23.3 million.

Using DHHS reported data, OSA determined that vacancies from 340 positions   that were never advertised and posted from August 2024 to August 2025 accounted for $16.5 million in lapsed salary funds, with $4.9 million from state appropriations and $11.6 million from receipts.

DHHS is statutorily mandated to report the detailed uses of lapsed salaries annually to the Joint Legislative Oversight Committee on Health and Human Services and the Fiscal Research Division by November 1. DHHS has submitted these reports an average of 296 days late since 2017.

DHHS was given the opportunity to respond to the report, and their input has been incorporated.