INV-0239

We received allegations through the State Auditors Hotline concerning certain practices within the North Carolina Administrative Office of the Courts (AOC). The allegations addressed a number of issues including the use of salary reserves and lapsed salaries to award pay raises to AOC employees, acting Directors of the AOC retaining their position as Superior Court Judge, payment of travel expenses, and the use of funds in the Technology Division. We have completed a special review of these allegations. Our review consisted of interviews with AOC personnel and examinations of personnel records, payroll records, and expense reimbursement requests. We also examined applicable North Carolina General Statues and policies within AOC. We question the practice of using salary reserves generated from employees within the clerks of Superior Court to fund salary increases to AOC staff. We recommend that the General Assembly examine the use of these salary reserves by AOC and determine if they are being used in accordance with legislative intent.