OIG to North Carolina: Refund $8.2 million
Compliance Monitor, October 19, 2005
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4. OIG to North Carolina: Refund $8.2 million
The OIG has determined that North Carolina should refund $8.2 million in federal money that was transferred into North Carolina's general and Year 2000 (Y2K) funds.
The OIG audited refunds and transfers from the state's Information Technology Services' (ITS) internal service fund for fiscal years 2002 and 2003 and all transfers that ITS made to the state's Y2K fund in fiscal years 1997 and 1998.
The OIG determined that ITS transferred $34.2 million in excess revenues from its internal service fund to the state's Y2K fund and general fund. The state failed to return the federal share of $8.2 million (consisting of $4.5 million transferred to the Y2K fund and $3.7 million transferred to the general fund).
The state made the oversight because ITS did not have procedures in place to ensure that the federal government received its share of all revenues in excess of costs, according to the OIG. In addition to recommending the refunds, the OIG further recommended that the state implement appropriate procedures to ensure that the federal government receives its share of any revenues in excess of costs in the future.
To accomplish the audit the OIG
State officials generally disagreed with the findings. Despite the state's assertions, the OIG continues to believe their calculations are accurate.
Click here to read the audit report, "Audit of the North Carolina Office of Information Technology Services Internal Service Fund ," (A-04-04-03503) issued September 30, 2005.
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