Associated Press
A North Carolina audit is finding problems with a program that gives businesses big tax breaks.
At issue in the report State Auditor Beth Wood released Monday are grants issued under the Commerce Department's Job Development Investment Grant program. The decade-old program has awarded 145 grants totaling more than $600 million.
The audit says state officials are relying on companies to confirm they've met job-creation and investment targets without independently checking the information. It also says the Economic Investment Committee, which oversees the JDIG program, should be informed about other companies being considered.
The audit recommends that the Commerce Department confirm the accuracy of company data used to compute grant payments. The audit says the program also needs measurable criteria to determine grant award amounts.
Commerce Department Secretary Sharon Decker said the program is important to economic growth.
"JDIG remains our state's most powerful and consistent performance-based incentive in our ongoing efforts to bring net job growth to North Carolina, and ... I welcome the opportunity to make it even stronger," she said.
She said the state is holding companies accountable.
"First, it is important for the taxpayers of North Carolina to know that we now require companies to formally attest to the veracity of the information they provide to us and ultimately to the N.C. Department of Revenue in order to meet either the eligible position or capital investment requirements. This is a legally binding affirmation and not one that companies take lightly," she said.
But she said the state is taking steps to address the audit's concerns.