(The Center Square) – NCInnovation management has pledged “transparency and cooperation” with the North Carolina treasurer’s office following an audit released last week.
Thursday’s letter of response to Dave Boliek, elected in November, said in part, “NCInnovation has already implemented measures responsive to each recommendation. The Executive Leadership Team commits to continuing those efforts and ensuring NCInnovation remains fully compliant with its duties, responsibilities, and reporting obligations.”
Bennet Waters, president and chief executive officer, signed the response. Boliek’s opening graphs of the report note the organization with aim to enhance research-to-commercialization at the state’s public universities are supported by a $500 million endowment reserve of public money.
The audit says the agency does “what is statutorily required of it.” Appropriation from lawmakers the last two fiscal years was $250 million in each. The Legislature this spring will craft the next biennial state budget.
“That said,” Boliek writes, “the Office of the State Auditor’s performance audit of NCInnovation does present recommendations the organization should implement in order to lower operational risk with private fundraising and improve transparency and communication to its Board of Directors.”
Recommendations are formal pledge agreements; fully informing the Board of Directors; and awareness the auditors may return unannounced at any time.
Critics of NCInnovation, an entity independent of the government, call it a corporate welfare operation. Similar programs faced scrutiny in Texas and Georgia, one in the former eventually losing state funding and another in the latter with little to no accountability via audits.
Reclaim State Assets from NCInnovation – or House Bill 154 – is being shepherded by the House of Representative’s cochairmen of the Oversight Committee. Reps. Harry Warren, R-Rowan, and Jake Johnson, R-Polk, are joined as primary sponsors by Reps. Julia Howard, R-Davie, and John Blust, R-Guilford.
The bill filed Feb. 18 seeks to dissolve the relationship of the state and NCInnovation. The language says a return of state funds and assets is merited. If passed, the proposal would become law immediately.
According to the nonprofit’s website, grants have been awarded for projects at N.C. A&T, Appalachian State, East Carolina, UNC Greensboro, UNC Wilmington, Western Carolina and two at UNC Charlotte.
