NC audit shows how $159.7 million in unspent Florence relief funds will be spent
An audit of funds distributed in response to 2018’s Hurricane Florence found that about $159.7 million of $942.4 million in state money had not been spent by January 31, 2021.
State Auditor Beth Wood’s office reviewed funds allocated in six different disaster recovery bills passed by the N.C. General Assembly between 2018 and 2020. That included $754.7 million allocated shortly after the slow-moving hurricane made landfall near Wrightsville Beach, bringing catastrophic flooding to much of Eastern North Carolina.
The N.C. Department of Public Safety had the highest amount of unspent disaster relief money with $96.17 million. A large portion of the unspent funds — $56.5 million — is slated to be used to pay for the state portion of projects that will largely be funded by the federal government, the audit said.
“The State of North Carolina provides the required 25 percent non-federal share on FEMA disaster grants and does not pass those costs on to local governments,” NC Emergency Management Director Will Ray said in a written statement. “Much of the unspent Hurricane Florence funding is set aside to cover that state portion on projects to buy out or elevate flood-prone homes and repair infrastructure like roads and bridges.”
For instance, DPS told auditors it is set to spend another $12.4 million to repair or rebuild homes that were damaged during the storm. An additional $8 million will be used to help people who lived in flooded homes purchase new housing outside of the floodplain and $5 million will be spent on buyouts.
According to the National Hurricane Center, Hurricane Florence caused an estimated $22 billion in damage to North Carolina, ranging from flooded homes to ruined crops to the destruction of roads and other infrastructure.
The N.C. Department of Agriculture had the second-highest amount of unspent funds, with $48.56 million, according to the audit. Of that money, $46.1 million had been allocated for the Hurricane Florence Agricultural Disaster Program.
But, per the audit, the department plans to spend at least $19.6 million restoring floodwater drainage networks and helping with matching funds.
The audit concluded that DPS, which administered the disaster relief money, had properly “accounted for, allocated and distributed” all of the funds allocated to it by the Florence recovery legislation.
In a response to Wood, Cassandra Skinner Hoekstra, DPS’ interim secretary, wrote that the department agreed with auditors’ conclusions.
This story was originally published September 30, 2021 at 7:30 AM with the headline "NC audit shows how $159.7 million in unspent Florence relief funds will be spent."