GOLDSBORO, N.C. — State Auditor Dave Bolick held a press conference Wednesday at the Wayne County Museum to outline the findings of a newly released report on the North Carolina Office of Recovery and Resiliency’s (NCORR) Homeowner Recovery Program (HRP). The review, conducted by the N.C. Office of the State Auditor (OSA), details significant financial, administrative, and operational failures in the state’s long-term disaster recovery efforts following Hurricanes Matthew and Florence.
NCORR was responsible for managing more than $1 billion in federal and state recovery funds through the HRP. While the program did provide critical assistance to thousands of residents, the audit—ordered by the General Assembly—revealed widespread issues that caused prolonged delays, financial shortfalls, and additional hardship for disaster survivors. These failures ultimately required a $297 million bailout from the State to keep recovery operations functioning.
“The unfortunate truth of this report is the response from North Carolina to Hurricanes Matthew and Florence was a disaster,” Bolick said during the press conference. “When government decides to focus on administrative procedures ahead of boots on the ground, hurricane victims get hurt. We must develop a long-term, transparent, accountable strategy to respond to future storms.”
Key Findings from the Audit
• Poor Budgeting Practices
The report found NCORR lacked a comprehensive assessment of statewide disaster recovery needs. Inconsistent financial reconciliation across three separate systems—North Carolina Financial System, Disaster Recovery Grant Reporting, and Salesforce—left the agency unable to determine total recovery costs until after the application period ended.
• Unreliable Data and Significant Delays
NCORR spent more than $25.4 million developing its Salesforce platform, yet incomplete and inconsistent data caused widespread delays. Applicants navigated an eight-step process that took an average of 100 days per step, with grant determinations averaging 936 days. Some families remained in temporary housing for more than 1,400 days.
• Lack of Financial Oversight
The agency had no structured financial roadmap and operated reactively, making spending decisions based on available funds rather than needs or performance goals. Nearly $785 million in public funds was paid to vendors without a single reconciled financial record.
• Weak Vendor Oversight
Only one of six administrative contracts included clear performance metrics, and in some cases payments were made without full verification of completed work.
Recommendations
OSA issued both long-term and short-term strategies to strengthen the state’s disaster response. Among the most significant is a proposal to establish a SOLID partnership—a long-term collaboration between the Council of State, Department of Public Safety, and the Legislature to create a sustainable disaster recovery framework.
Other recommendations include:
Long-Term Actions:
- Implement robust budgeting and financial oversight
- Strengthen contract management
- Establish strong data governance systems
Short-Term Priorities:
- Improve financial monitoring
- Enhance contract oversight
- Increase data accuracy and reporting practices
OSA officials confirmed that NCORR participated throughout the review process, and the agency’s full response is included in the published report.
The audit aims to serve as a blueprint for reform, ensuring North Carolina is better prepared for future natural disasters.
