The Political Beat Candidate Guide: North Carolina State Auditor

CHARLOTTE — General elections in North Carolina are set for Nov. 5, and many statewide offices have candidates in the running from the Democratic and Republican parties.

Democrat Jessica Holmes, who was appointed to the position following the resignation of Beth Wood, faces Republican Dave Boliek. Libertarian Bob Drach is also running.

Below are the unedited responses from the candidates.

Dave Boliek

What is your Occupation? Former prosecutor. Small business owner. Trustee and former Chair at UNC-Chapel Hill.

Why are you running? I am running for State Auditor because we need a qualified and experienced leader in this important office. I’m a native North Carolinian and this state has been good to me and my family. I want to work hard to keep North Carolina the greatest State in the nation and make a difference through the State Auditor’s office.

What is the most important issue and how do I plan to address it? Accountability is the most important issue for the State Auditor. The Auditor’s job is to protect taxpayer dollars and hold agencies accountable. Every level of our state government should beheld accountable for: 1. Spending and use of taxpayer dollars; 2. Efficiency and being customer-service oriented; and 3. Accountable for waste, fraud and abuse. On day one, we will audit the DMV (Department of Motor Vehicles) for economy and efficiency. Citizens across North Carolina deserve a better DMV, and a full audit WITH SOLID RECOMMENDATIONS FOR REFORM can be the catalyst for making it better. We’re also going to create a rapid response team to handle situations at the state and local government level in need of support from the Auditor’s office. We will also be a helping hand to smaller municipalities and counties that need expertise to accomplish required auditing functions.

How will you use the auditor’s office to be the best steward of taxpayer funds? I will ask the tough question to all government agencies and organizations receiving taxpayer funds, starting with: “What is the return on taxpayer investment with this agency or program? ”Taxpayers should expect a return on investment. That return should help make North Carolina a better place to live, provide opportunities for all North Carolinians to be successful, invest in future generations to maintain a high quality of life in North Carolina, or ensure the way taxpayer dollars is efficient and makes a difference to the citizens of the state.

Is there a State Agency that needs the most attention from the auditor’s office?

The DMV will be audited from top to bottom beginning on Day 1 if I am elected. There is clearly a breakdown in the way the agency is managed and there is a lack of resources and support given to individual DMV offices to accomplish the tasks of issuing licenses, issuing IDs, registering motor vehicles and other regulatory functions. A full audit with recommendations for reform is vital to North Carolina and our taxpayers.

What sets you apart from your opponents?

Support from both parties and real-world experience. Both living former elected state auditors– one a Republican and one a Democrat – have endorsed my campaign because of my experience and qualifications. My experience in the private sector as a business owner, prosecutor, board member (such as UNC-Chapel Hill, where we reformed its $4.4 billion annual budget), and my educational background that includes both a law degree and an MBA set me apart as the most experienced and most qualified candidate in the race for state auditor.

Bob Drach

What is your occupation? Accountant.

Why are you running? Improve financial management in state government. Restore the credibility of the Office of the State Auditor.

What is the most important issue and how do you plan to address it? There is dysfunction in the Office of the State Auditor. The prior auditor resigned in disgrace and was replaced by a political appointee and trained lawyer who the prior discredited auditor says “does not have a clue.” while endorsing another poorly qualified lawyer for the job. “No resentment,” she says. If it sounds like a mess, that is because it is. The solution is to bring in a qualified, independent accountant and change agent – that is me.

How would you use the auditor’s office to be the best steward of taxpayer funds? We need to get rid of the political bias and the appearance of favoritism that tarnishes the Office of State Auditor. Only a candidate like me who is neither a democrat or a republican can do this -- the other candidates both can be accused of the appearance of a conflict of interests. Once the Auditor is re-established as credible and unbiased, the office can expose the waste, fraud, and abuse that diverts state money and causes harm to the most vulnerable people in our state.

Is there a state agency that needs the most attention from the auditor’s office? State government spends over $30 billion, and it all needs to be audited. But to meet the professional standards of auditing one must be impartial. To target a state agency or program would reflect poorly on an auditor. Instead, audits are initiated at the request of the state legislature or by others through mechanisms like the waste, fraud, and abuse tip line at the Office of State Auditor. You know, 60% of fraud can’t be discovered by standard audit procedures. It requires an insider -- someone who sees something to say something, to expose most fraud. Thus, creating an environment seen as unbiased and safe, including legal protections for whistleblowers, is the most important thing an auditor can do.

What sets you apart from your opponents? I am qualified and independent; they are not. I am a Certified Management Accountant (CMA); they are lawyers. I worked over 4 years at Deloitte, one of the world’s premier accounting, tax, and consulting firms; they have no such experience. I earned my Masters in Business Administration (MBA) from Stanford University; they have law degrees. I am independent of the two major political parties; they both have conflicts of interest in dealing with representatives of their respective parties. I am a former Peace Corps Volunteer and believe in national service and giving back to the community.

Jessica Holmes

What is your occupation? North Carolina State Auditor

Why are you running? We are fortunate to live in a state “where the weak grow strong and the strong grow great.” My life story is a testament to North Carolina’s state toast. The auditor’s office touches almost every issue that impacts our daily lives from education, infrastructure and roads, environment quality, affordable housing, human services including nursing home care and supplemental nutrition assistance programs, etc. Coming from humble beginnings and as a first-generation college student, I have personally benefited from federal and state programs under the purview of the State Auditor’s authority including being a graduate of Head Start and public schools, receiving free and reduced priced lunch, SNAP benefits and having lived in affordable housing. Ensuring that tax dollars are used effectively and most efficiently isn’t a talking point for me – it’s personal.

What is the most important issue and how do you plan to address it? There are direct and indirect costs to taxpayers due to high vacancy rates, currently over 20% across state government, such as its impact on public safety, customer service, and thousands of dollars wasted to train and retrain employees. I have and will continue to advocate for meaning salary increases for state employees so we can recruit and retain the talent needed to provide the level of services North Carolinians deserve. Another important issue is regarding pork barrel spending and special projects that do not support the core functions of government. There have been increasingly substantial allocations to for-profit corporations and nongovernmental entities with little to no oversight or metrics to define success or determine a tangible return on investment. Some of these appropriations are allocated outside of the typical appropriations process and are not debated in committee. Such instances breed a perfect storm of increased risks of fraud, waste and abuse of taxpayer dollars. Specifically, regarding no-bid contracts, I recommend that all government contracting undergo a competitive bidding process to ensure we are getting the best return on investment and applicants are given fair and thoughtful consideration thereby increasing transparency and opportunities for public input and awareness. Moreover, I would recommend grants detail clear metrics to determine success and accountability measures and an inherent process to evaluate potential conflicts of interests.

How would you use the auditor’s office to be the best steward of taxpayer funds? The North Carolina State Auditor is the state’s independent watchdog charged with identifying fraud and wasteful government spending. My top priority is to perform impactful audits and investigations to ensure federal and state taxpayer dollars serve its intended purpose to benefit North Carolinians. For example, ensuring hurricane relief dollars get to people impacted by floods and storm damage and that seniors and people with disabilities receive the services and care they need and that state agencies are working as effectively and efficiently as possible. I prioritize audits and investigations around sound methodology accounting for impact on North Carolinians including risk of harm to vulnerable populations such as seniors, people with disabilities, students, veterans, foster children and underserved communities, and the kitchen table issues we all care about.

Is there a state agency that needs the most attention from the auditor’s office? As a Deputy Commissioner in the NC Industrial Commission, I resolved controversies by rendering impartial and well-reasoned decisions according to law. I will continue to honor these same principles as State Auditor and lead OSA with integrity, transparency and a focus on accountability. The State Auditor is the taxpayers watch dog, not it’s attack dog. I have and will continue to work with state agencies to identify issues and inefficiencies and be solutions oriented notwithstanding political talking points insinuating nonexistent voter fraud or criticizing the DMV without acknowledging that our state has grown by approximately 3 million additional new residents since 2000 and that there has not been proportional allocations to increase the number of DMV license examiners or DMV offices.

What sets you apart from your opponents? I am the only candidate in this race who has ever been elected to public office. In November 2014, our state’s most populous county elected me as the youngest Wake County Commissioner ever elected to the board. I represented over one million constituents at-large and helped manage a $1.1 billion budget in a governmental agency with over 4,000 employees. Subsequently, I was unanimously elected by my colleagues and became the youngest person to ever serve as Chair of the board. Meanwhile, I was appointed as a Board Member of the NC Association of County Officials. Local government experience is an asset as the State Auditor is an ex-officio member of the NC Local Government Commission, which approves the issuance of debt and assists local governments regarding fiscal management. Also, I am the only candidate in this race with actual experience as State Auditor. Moreover, I have taken advantage of membership in the National State Auditors Association by brainstorming ideas and challenges with State Auditors across the country.

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