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North Carolina Partnership for Children <br /> m Response to Statements in News and Observer May 19, 2002 Article regarding Smart Start <br /> Q <br /> What the article said What the article didn't say <br /> In its latest audit, Smart Start's parent organization The"latest audit"referred to in the article for the North Carolina Partnership for <br /> was cited for overdrawing its bank accounts by Children(NCPC) is for the FY99-00(2 YEARS AGO.) Since that time the accounting <br /> W $5.5 million,failing to.spend$4.4 million in and management of NCPC has been completely restructured. <br /> O <br /> ° .subsidies to help parents pay for child care, and --Although the audit for the year ended June 30, 2001 has not yet been released,the <br /> not adequately monitoring the$216 million State Auditor has confirmed that it will have only one finding acid it is"partially <br /> CV) program it oversees. resolved."This last remaining finding should be resolved during the current fiscal year. <br /> --The lack of availability of current NCPC audit results is evidence of the delay in <br /> receiving audit reports. Due to this delay it oven takes two audit reports to ensure a <br /> finding is resolved since two fiscal years have passed by the time the audit report for the <br /> first year is received. <br /> t <br /> a <br /> L <br /> C According to the latest round of audits--for the Once again the audits referred to in the article are for the year ended June 30,2000(2 <br /> � fiscal year ending in 2000--more than half the YEARS AGO). The facts arc: <br /> M partnerships either could not get a clean audit or --Only 29(NOT 31 as noted in the article) of 81 local partnerships had any audit <br /> n failed to.spend a third of'their money on child-care findings at all and 14 of those were partnerships who had only been in operation for 2 <br /> subsidies - which is required by law. years; <br /> o --No audit findings is the goal for all partnerships but administrative audit findings <br /> U <br /> are typical in start-up operations. We have been told by the State Auditor's Office that <br /> during the start up years of other statewide organizations such as the community college <br /> M system, similar types of audit findings were found. <br /> L <br /> O <br /> Q ,I review of the audits found that 92 percent of the There has been significant improvement in the local partnership audits. Of the 81 <br /> in <br /> N partnerships had financial problems in the first two partnerships, 29 had audit findings for the year ended June 30,.2000(2 YEARS AGO). <br /> .� years q f Smart Start. By 1997, that percentage fell Of these 29 partnerships, 14 were only in their second year of operation—a poi nt that <br /> ° to 38 percent of 48 partnerships. Mr. Campbell fails to mention when he says there has not been satisfactory <br /> CU The latest review shows problems in more than a improvement. <br /> O . third of the partnerships—not a satisfactory <br /> a improvement, Campbell said <br /> n <br /> E . <br /> 5/20/2002 1 <br />