PER-2026-8182

The North Carolina Office of the State Auditor found that while IOLTA’s grant award process generally complied with eligibility and purpose requirements, the program did not implement adequate post‑award monitoring as revenues and grant disbursements grew rapidly, limiting assurance that approximately $30 million in funds were used as intended. IOLTA relied largely on self‑reported information, did not consistently require measurable outcomes in grant applications, and did not independently verify expenditures or results; weaknesses similar to those identified in a prior audit. To address these risks, OSA recommends that IOLTA implement risk‑based verification of grantee expenditures, establish procedures to independently validate outcomes, and formally track monitoring results and corrective actions, with Board review of these enhancements within six months.