(The Center Square) – Inadequate internal controls, including review procedures, that would have ensured accurate financial reporting are cited in an audit of the North Carolina Global TransPark by the state auditor’s office.
The report covers the fiscal year ending June 30. The absence of a finance director since February 2022 was cited by state Auditor Jessica Holmes’ report as the primary culprit for the deficiencies found.
In a Dec. 12 response from Global TransPark Authority Executive Director Preston Hunter, the hiring of a finance director took place Aug. 26. Hunter also wrote that a contingency plan for staff vacancies would be generated before June 30 next year, and procedures for year-end review of financials would be addressed.
• “Capital-related accounts were overstated by $7.3 million because expenditures were incorrectly capitalized and related to prior year activity that was already recorded.”
• “Operating revenues were overstated by $7.6 million because nonoperating revenues were misclassified and lease income was recorded in the wrong fiscal year.”
• “Cash accounts were misclassified by $1.2 million because year-end presentation adjustments were not calculated correctly.”
• “Salaries and benefits were overstated by $896,000 because supplies and services expenses were misclassified, and a year-end journal entry was not recorded correctly.”
• “Leases receivable and the related deferred inflows were understated by $553,000 because lease agreements were not properly evaluated and recorded.”
• “Additional audit adjustments were required to correct misstatements in the financial statements, notes to the financial statements, and required supplementary information.”
The Global TransPark bills itself as a “world-class, 2,500-acre multimodal, industrial and business park.” An 11,500-foot runway and 33,000-square foot composite training center are anchors.
Originally three decades ago, the park was intended for air cargo transport infrastructure and manufacturing facilities. Things didn’t work out, a new vision was hatched, and the aviation and aerospace industry as well as nearby military installations are benefactors.
Hunter, native of Lenoir County and former engineer with the state Department of Transportation, was named the park’s executive director in February 2022 and has announced his retirement effective at the end of the year. He’s worked for state government more than 33 years.
Jeremy Stroud, from nearby Snow Hill and deputy director, was announced last Thursday as his successor. He has 18 years with the department.
