Report: N.C. agencies lack internal oversight

RALEIGH, N.C. The state auditor's office says many government agencies lack adequate staff, guidance, or expertise to properly conduct internal audits.

Les Merritt's office examined state agencies including the university and community college systems and found that some have not followed previous recommendations.

The report issued today says the state hasn't sufficiently reacted to corporate scandals with an eye toward preventing similar situations in state government.

Merritt's report also found what it calls "significant issues" at the Department of Transportation. The problems include a failure to complete audits and release results, a failure to correct deficiencies identified by outside consultants, and a failure by management to fix problems.

The report also says internal audits were "largely non-existent" within the community college system.

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