Audit: Millions of Hurricane Florence relief funds were distributed without oversight

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Hundreds of millions of dollars in Hurricane Florence relief funds were distributed in North Carolina without the intended oversight in place, according to a report from N.C. Office of the State Auditor.

The report said the state Department of Public Safety distributed more than $500 million from that fund with limited monitoring procedures. Another $783 million was distributed without making sure recipients could measure the results.

The report said DPS required recovery fund recipients to submit monthly spending reports “using templates noting legislative reference, appropriation amount and purpose.” But, the report said DPS did not require recipients to submit documents verifying how the money was spent.

In his response, DPS Secretary Eddie Buffalo said the department has limited authority in this area.

However, State Auditor Beth Wood called that statement misleading, saying it was not true. She said, the law that created the Hurricane Florence Disaster recovery fund required oversight of the process.​

The report recommended DPS monitor external recipients of relief funds by spending time ensuring “funds are being spent in accordance with Hurricane Florence Recovery legislation.” It also recommended the department develop policies and procedures ensuring recipients have objective for what they would do with the funds and measures their progress toward meeting the objectives.

The report also stated the General Assembly should “consider monitoring requirements in future legislation regarding the spending of Hurricane Florence Disaster Recovery Funds or other emergency relief funds.”