NC agencies slow to eliminate vacancies flagged in audit

In an update to an audit released in January by the Division of Accountability, Value, and Efficiency (DAVE), only 129 (15.6%) of 819 long-term vacancies planned for elimination across state agencies occurred by Feb. 1

The division has been analyzing long-term vacancies and associated lapsed salaries across state agencies.

“The remaining positions continued to generate millions in lapsed salary, underscoring the importance of aligning staffing plans with budgeted positions and actual workforce needs,” North Carolina State Auditor Dave Boliek said in a press release. “The report also highlights that some agencies pursued alternative workforce strategies rather than eliminating the specific vacancies initially identified. Notably, the Department of Adult Correction (DAC) eliminated more than 1,500 vacant positions to redirect funding toward operating expenses, including contract nurses and medical providers.”

The report notes that the 690 vacancies not eliminated continued to generate lapsed salary, totaling $10.9 million over four months ($7.2 million in appropriations and $3.7 million in receipts) and are projected to generate $32.7 million annually.

State agency responses were aggregated into outcome categories. 475 vacancies identified in OSA’s January 2026 report are no longer planned for elimination, 461 of which were because DAC’s eliminations primarily involved vacancies not originally planned for elimination. In total, 129 vacancies were eliminated before the OSA follow-up, and 94 were added to the formal elimination process afterward. 92 vacancies were transferred or reclassified instead of being eliminated, 86 of which were due to DHHS’s workforce management actions. 16 vacancies have not yet been eliminated; five are unfunded placeholder positions to facilitate future hiring; four have been filled; and four others are held due to uncertainty about potential elimination in the House or Senate budgets.

The 661-page performance audit released in January showed, as of Aug. 6, there were 8,846 long-term vacancies across 46 state agencies, totaling $1.04 billion in lapsed salary.

State agencies reported the information to NCOSA’s Division of Accountability, Value, and Efficiency (DAVE), which was created in August. The enabling legislation requires each state agency to report to the DAVE on how the agency spends taxpayer funds and instructs NCOSA to put together a report by the end of the year on which state agencies and jobs can be cut.

Lapsed salary is defined by the Office of State Budget and Management (OSBM) as the amount not expended for salary during the entire period in which the position was vacant. The long-term vacant positions are funded by state appropriations, specific agency-generated receipts, and federal funding and grants.

The state agency with the highest number of long-term vacancies (six months or more) was the Department of Health and Human Services (NCDHHS), with 3,074 vacancies, or $375 million in lapsed salary.

In the April report, NCDHHS is shown to have eliminated 34 long-term vacancies, with 173 remaining.

The report states that, according to NCDHHS management, NCDHHS actively managed its workforce by repurposing 86 positions from RJ Blackley, a closed facility. The plan for these positions has changed since last fall because NCDHHS was awarded funds under the Rural Health Transformation Program (RHTP). Repurposing these positions will be more efficient and timely because it eliminates certain administrative steps required when creating new positions for RHTP from scratch. These positions do not currently have dollars associated with them and will be funded by RHTP when that funding becomes available.’

Auditors said that there is a degree of variation and nuance among different vacancy categories, particularly when it comes to the vacant position’s funding source. Specifically, receipt-funded or federally funded positions may not always produce actual funds for the agencies to use.

“Overall, the findings show that eliminating long-term vacancies can meaningfully support operations and improve budget transparency, but also that agencies are using varied approaches to actively manage their workforces and resources,” Boliek said. “These practices provide greater budget transparency to policymakers and the public on how tax dollars are being spent.”

He said his office will continue to produce reports and that DAVE is currently engaged with community colleges and public universities across the state.

“NC agencies slow to eliminate vacancies flagged in audit” was originally published on www.carolinajournal.com.