The results of our audit disclosed deficiencies in internal control and /or instances of noncompliance or other matters that are considered reportable under Government Auditing Standards. Specially, the North Carolina Industrial Commission (NCIC) has not implemented a data matching program to proactively identify employers doing business in North Carolina who are not complying with the Workers' Compensation Act. Improvements are needed to the data sets to ensure a reliable data match can be performed. In addition, the NCIC has not used available data to follow-up on businesses that cancel their workers' compensation coverage or let their coverage lapse. Finally, the Commission has not strictly enforced penalty assessments and collections thereby potentially depriving the school system of much needed funds.

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