NCInnovation (NCI), a state-funded venture aiming to commercialize university research, has passed its first performance audit with no legal violations according to a report by the NC State Auditor’s Office. The organization secured $500 million in taxpayer funds to support public university research with market potential. The audit affirmed compliance with statutory requirements and proper documentation of private funding commitments and grant awards.
State Auditor Dave Boliek noted that NCI’s board and financial reporting met requirements but called for more public detail on progress. The audit made recommendations for improvement including enhancing transparency, formalizing grant award policies, and improving conflict of interest awareness.
The report also highlighted concerns about conflicts of interest related to the selection of Wells Fargo as the investment manager for NCI’s $500 million endowment. While auditors did not identify any conflicts of interest, questions were raised about Wells Fargo’s prior donation to NCI and the former Wells Fargo executive serving as chair of NCI’s Investment Committee.
Boliek emphasized the importance of clearer updates for taxpayer oversight and the long-term impact of NCI’s activities on North Carolina’s economy. However, some lawmakers are pushing to reclaim and repurpose the $500 million taxpayer funds allocated to NCI through House Bill 154, which proposes redirecting the funds to disaster relief efforts.
As NCI navigates these challenges, the organization must address recommendations for improved transparency, conflict of interest management, and financial record-keeping to ensure effective use of taxpayer dollars and foster public trust.
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