(The Center Square) – Deeper investigation into Medicaid and other areas of government spending are coming, the state auditor of North Carolina said Monday following release of a statewide single audit examining $28 billion in federal grants for the 2025 fiscal year.
Medicaid accounted for more than half of $43.9 billion in expenditures of federal awards for the year ended last June 30. Nineteen findings were in the report from first-term Republican Dave Boliek and staff, with questioned costs totaling $342,093.
“The federal government administers a massive amount of funding,” Boliek said. “Look no further than the $24.7 billion flowing through Medicaid. This annual audit gives us a chance to examine at a high level how federal grants are used in North Carolina and where there may be questionable expenditures.
“It’s our duty at the state level to make sure any funds directed to North Carolina are used properly and responsibly. While the single audit provides a high-level financial overview, the work done by our team and the findings and questioned costs will help steer us toward deeper dives into Medicaid and other areas of government spending.”
The Department of Health and Human Services, led by gubernatorial appointee Dr. Devdutta Sangvai, had eight federal findings. Subawards on two occasions to counties totaling $138.8 million were not reported as required. An improper payment of $113,115 has since been recovered.
The audit said the Department of Commerce, led by gubernatorial appointee Lee Lilley, lacked adequate internal controls to include review procedures and accurate financial reporting. The combination led to $873 million in overstatements and $260 million in understatements.
