NC Disaster Funds Mismanaged: Families Still Reeling

A scathing report from the North Carolina Office of the State Auditor has exposed significant failings in the state's disaster recovery efforts following Hurricanes Matthew and Florence. Poor budgeting practices, unreliable data systems, and weak oversight are blamed for leaving families in temporary housing for years while awaiting aid. The audit focused on the Homeowner Recovery Program, which managed over $1 billion in disaster recovery funds, finding that its response fell "far short" of needs.

The state's disaster response program, NCORR, faced issues including a lack of complete needs assessment and financial commitments that exceeded available funds, necessitating a $297 million bailout. Inconsistent reconciliation across three disparate financial and program management systems—the North Carolina Financial System, Disaster Recovery Grant Reporting system, and Salesforce—made accurate money tracking difficult and contributed to homeowner delays. The implementation cost of Salesforce alone exceeded $25 million, a sum comparable to the entire budget of the State Auditor's Office.

Beyond system failures, the application and construction processes were excessively lengthy, with grant determinations averaging 936 days. Some households incurred over $230,000 in lodging costs while waiting. Vendor oversight was also criticized, with a lack of key performance indicators in contracts and payments made without full verification of work. The audit recommends strengthening budget controls, improving data governance, enhancing contractor oversight, and establishing a transparent, long-term strategy for future hurricane response.