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The Daily Tar Heel

Audit shows $10 million problem

A program intended to support military members and their families, funded with about $10 million in federal money, suffered from serious organizational mismanagement and ineffectiveness, Chancellor Holden Thorp announced Wednesday.

An internal audit and review of the Odum Institute’s Citizen Soldier Support Program was prompted by allegations of mismanagement of federal funds.

The program is intended to help soldiers and their families find mental health support and readjust to life after deployment, according to its Web site.

The audit found the program suffered from red tape associated with the University without taking advantage of the institution’s expertise.

“My view is that this program has serious flaws, and I don’t think we’ve given the federal government the best return on its investment,” Thorp said at the Board of Trustees audit and finance committee meeting.

Thorp said the program was limited in its early years by leadership turnover and funding delays, but has shown some success since then.

Still, he said the program would have to make significant changes to remain in operation.

“This program has to show dramatic improvement in a short period of time to remain viable,” he said.

On June 13, 2008, U.S. Rep. Sue Myrick, R-N.C., sent a letter to UNC-system President Erskine Bowles questioning the management of the federal money provided to the program.

In response to Myrick’s letter, UNC ordered an internal audit. The audit recommended better training for employees, as well as the creation of stronger financial controls. The institute has addressed these recommendations, Thorp said.

UNC also investigated the extent to which the program met the needs of military families and satisfied its federal obligations.

“The CSSP will have to make some rather profound changes to the way it operates,” the report states.

Thorp said he reactivated the internal review committee and that program leaders will deliver another progress report next month.


Contact the University Editor at udesk@unc.edu.

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