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flag North Carolina audits $28 billion in federal grants and finds no material noncompliance.

flag North Carolina’s 2025 Statewide Single Audit found no material noncompliance for the first time in over 20 years while examining $28 billion in federal grants. flag The audit identified 19 issues, including significant reporting failures at the Department of Health and Human Services regarding unreported subawards totaling $138.8 million and a $113,115 improper payment recovered by the state. flag Additionally, the Department of Commerce faced a material weakness in financial reporting with misstatements affecting nearly $1.1 billion.

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