Audit: NC paid $111M for Helene base camps without tracking key services

A new rapid response report from the North Carolina Office of the State Auditor (OSA) is raising questions about more than $111 million spent to operate 55 Hurricane Helene base camps and comfort stations, finding the state paid fixed contract rates for services such as meals, showers, laundry, and beds without tracking how much of those services were actually used. 

The report, released Tuesday by State Auditor Dave Boliek, looks at contracts between North Carolina Emergency Management (NCEM) and Texas-based disaster response contractor SLSCO LTD (SLS). The facilities supported first responders, utility crews, state employees, and disaster survivors across western North Carolina following Hurricane Helene. 

State Auditor Dave Boliek said the report is not intended to question the need for emergency response but instead highlights the importance of evaluating costs once the immediate crisis has passed. 

“These base camps were an essential service in the immediate aftermath of Hurricane Helene,” said Boliek in a press release. “Now that we are in the long-term rebuilding phase of recovery, and knowing that future emergencies will strike, it is essential that we, as a state, have discussions on associated costs. $111 million is no small total, and the absence of key metrics raises a clear need to assess how these camps are utilized and consider the full return on the expense.” 

According to the audit, NCEM paid a total of $111,067,464 over roughly seven months, averaging about $516,593 per day. The largest individual site, located in Swannanoa, accounted for more than $27 million in expenses. Auditors found many of those costs were based on the anticipated number of people each location was expected to serve rather than actual usage. 

Meals, for example, were billed at a flat rate based on facilities serving 155, 250, or 750 people. That pricing translated to an effective cost of $41.67 per meal, regardless of how many meals were actually served or eaten. The report states neither SLS nor NCEM tracked actual meal consumption, and invoices were not adjusted based on the number of meals provided.

The audit found a similar lack of tracking for other services. Laundry charges were based on anticipated demand rather than the number of loads completed, while shower usage, restroom usage, and handwashing activity also were not measured because those metrics were not required under the state’s disaster contract.

Labor costs were another major expense. General staff were billed at $87.30 per hour, POD managers at $145.50 per hour, and site coordinators at $12,100 per week. Overtime increased those hourly rates to $130.95 for general staff and $218.25 for POD managers. The report also notes NCEM did not have formal job descriptions for those positions, leaving qualifications to the contractor.

NCEM, responded to the report, defended the spending, emphasizing the unprecedented scale of the Hurricane Helene response. 

The agency said thousands of first responders from North Carolina and 39 other states, along with National Guard personnel, military members and utility crews, required housing, food and logistical support while conducting rescue, recovery and infrastructure operations. NCEM argued that disaster contracts are inherently expensive because they prioritize life safety and rapid deployment during catastrophic events. 

NCEM also noted every invoice reviewed in the audit had already been examined by the Federal Emergency Management Agency (FEMA) as part of the Public Assistance Program. According to the agency, FEMA determined the costs were necessary, and eligible for 100% federal reimbursement. 

“While capturing the specific number of meals, showers, or beds used may be helpful in day-to-day commodity procurement, disaster procurement is based on supporting the needs of local communities, of SERT partners, and of emergency responders in a time of significant stress and when life safety and sustainment is the priority,” wrote DPS Secretary Jeff Smythe in response. “North Carolina Emergency Management is dedicated and focused on ensuring the right resources are available when needed to respond to catastrophic incidents and to support the North Carolinians we all serve.” 

“Audit: NC paid $111M for Helene base camps without tracking key services” was originally published on www.carolinajournal.com.