Audit identifies deficiency at New Hanover Clerk of Superior Court’s office

NEW HANOVER COUNTY, NC (WWAY) — A periodic financial audit of the New Hanover County Clerk of Superior Court identified a deficiency in internal control and an instance of noncompliance, according to a report from the Office of the State Auditor.

The audit covered the period of July 1, 2017 to February 28, 2018.

Auditors found that the Clerk’s Office did not transfer unclaimed funds to the North Carolina Department of State Treasurer in accordance with state law. During the audit, the Clerk’s Office transferred 915 unclaimed items totaling $427,124 to the Treasurer.

Auditors examined 66 of the items and discovered 19 of the items should have been transferred in prior years.

• 18 of the items totaling $3,018 in unclaimed funds should have been transferred to the Treasurer between 2013-2016.
• One item totaling $200 should have been transferred to the Treasurer in 2011.

The auditor’s office says as a result, the return of unclaimed funds to the rightful owners was delayed.

According to the Clerk, the items were transferred late because employees did not understand the North Carolina Administrative Office of the Courts policies and procedures for timely submission of unclaimed funds to the Treasurer.

In a letter of response, New Hanover County Clerk of Superior Court Jan Kennedy said the concern raised is valid and ‘it is important to note that no fraud was identified and that the Clerk’s Office always follows state law and strives to respond to all matters in a timely matter.’

The letter also says implementation and training has already started by all departments in the Clerk’s Office.