State Audit: NCInnovation in Full Compliance
Audit: “NCInnovation followed what is statutorily required of it
Research Triangle Park, NC – The North Carolina Office of the State Auditor on Friday published its report on NCInnovation. The full report can be downloaded here, and excerpts are below.
NCInnovation supports university research proofs of concept – like research at Appalachian State University to decrease honeybee hive die-off, a critical issue for the agriculture community – that need further development before they can attract private investment. This university-to-industry pipeline has long been central to American innovation, and NCInnovation helps applied research mature to the point of being commercially investible by the private sector.
Findings
- “Private funding commitments were documented in accordance with state law.”
- “NCInnovation grants were awarded to recipients in accordance with state law and NCInnovation procedures.”
- “NCInnovation ensured that grant recipients had methods to measure results.”
Private Philanthropic Contributions
- “Auditors obtained and reviewed supporting documentation for all of NCInnovation’s 29 pledges and determined that all 29 pledges were (1) made in writing, and (2) due to be received within the timeframes required by state law.”
NCInnovation’s Initial Slate of Eight “Pilot” Research Grants
- “Auditors determined that NCInnovation followed its procedures in selecting the eight pilot grant awards.”
- “NCInnovation ensured that all eight (100%) recipients that were awarded grants as part of its pilot grant program had a method to measure whether results were achieved.”
NCInnovation’s Compliance with Generally Accepted Accounting Principles (GAAP)
- “Two different, independent CPA firms have confirmed that NCInnovation’s records and accounts are maintained in accordance with generally accepted accounting principles (GAAP) and that NCInnovation is in compliance with the relevant requirements of state law.”
Following a rigorous, independent review process as affirmed by the State Auditor, NCInnovation anticipates presenting to the full Board of Directors in May the Board Program Committee’s recommendations for the next round of research grants.
NCInnovation CFO Linda Hall said, “With nearly 30% of its pilot grant funding going to UNC System universities in western North Carolina, NCInnovation is a key component of long-term recovery for the region. By keeping successful research in the communities that create it, NCInnovation enables generational economic development opportunities that transcend one-time appropriations.
“Above all, NCInnovation takes seriously its responsibility to help commercialize UNC System applied research in accordance with state law. We are gratified by the Auditor’s findings – that NCInnovation is operating in accordance with state law and its own internal procedures – and we look forward to continuing our important work on behalf of all North Carolinians.”
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NCInnovation, Inc. is a Research Triangle Park, NC-based 501(c)(3) public-private partnership designed to accelerate commercialized innovation from North Carolina’s research universities. Backed by more than $25 million in private philanthropic commitments, NCInnovation uses the interest and income from a $500 million State-funded endowment to provide non-dilutive grant funding, mentors, and support services so that North Carolina university proofs-of-concept return value to the regional communities that created them. Learn more at NCInnovation.org.
