Today, the North Carolina Office of the State Auditor (OSA) released a focused performance audit of NCInnovation (NCI), an organization supported by a $500 million public endowment reserve. The scope of the audit included the documentation of private funding commitments, awarding of grants to recipients, and the measurement of program results. The report found that NCI followed statutory obligations related to the audit objectives. OSA also offered recommendations for the organization to improve operations.
"Within the scope of the audit performance, this report offers a clear evaluation of NCI’s private funding commitments and grant procedures. It’s straightforward, lays out the facts, and can help strengthen NCI's internal operations," said State Auditor Dave Boliek.
Findings:
- Private funding commitments were documented in accordance with state law.
- NCI grants were awarded to recipients in accordance with state law and NCI procedures.
- NCI ensured that grant recipients had methods to measure results.
Recommendations:
- Management should continue to ensure that all pledges are documented in a regular and consistent manner, such as through use of the formal pledge agreement form.
- Management should leverage their experience conducting the pilot grant program during future grant award activities and should formally document policies and procedures that will be followed during future grant award activities.
- Management should continue working with the Program Committee of the Board of Directors, including providing details of projects not recommended for funding in the future to strengthen transparency, communication, and oversight of future grant awards.
Read the full report here.