CHARLOTTE, N.C. — A newly completed audit found the City of Charlotte wasted at least a quarter million dollars in taxpayer money by paying for more than 1,100 employee smartphones, iPads, data and cell services that sat unused for months. Auditors started their review after an Employee Hotline call "suggested there were mobile devices going unused for at least 90 days."
The subsequent audit found roughly 17% of all city-owned devices went unused for at least 90 days with 752 continuing to sit unused for seven months dating back to November 2019. Auditors concluded "Inadequate controls over the management of mobile devices have resulted in unnecessary expenses."
The city deactivated 538 of the questionable devices after auditors started asking questions, which is expected to save $21,300 a month or $255,600 annually, according to the audit. In the meantime, the city is also researching the "continued business need" of other devices.
North Carolina Policy Watch Director Rob Schofield said the audit is just another example of human behavior and a reminder that bureaucratic oversight is critical.
"We tend to be slothful sometimes and not pay attention to the details and cut some corners," Schofield said. "We actually ought to be investing more in audits, because it's important that people have faith in their government. This kind of stuff goes on in all large institutions. It's endemic to government, but large corporations see this kind of waste. Whether it be at that local cell phone level or whether it be a giant corporate tax loophole, we need to have everybody playing by the same rules."
City of Charlotte Deputy Chief Information Officer Brad Dunkle said the long list of unused lines is the result of a previously decentralized system. He said the city will now require department heads to review idle lines every month and then justify if they're actually needed.
"We are always looking to uncover every rock we can to find any dollars we can," he said. "I can assure you there's nobody in the city that's purposely letting these lines go idle and wasting money, wasting taxpayer dollars."
Dunkle said the city was in the process of creating a new cellular device policy before the audit. He considers the tip that sparked the review "a good thing."
"We welcomed this audit," Dunkle said. "It's going to help us get this policy through."
He expects the new policy to be implemented by October.