Audit takes Golden LEAF to task

If the purpose of an audit is to identify institutional weaknesses and to suggest improvements, the Golden LEAF Foundation was handed a fairly lengthy to-do list Monday.

At the core of the scolding report released by N.C. Auditor Beth Wood is a question of whether Golden LEAF and the state are doing enough to make sure federal tobacco settlement money is being used effectively and free of political influence.

The unfavorable audit comes as the foundation prepares to celebrate 10 years since the N.C. General Assembly chartered Golden LEAF, based in Rocky Mount, to manage half of North Carolina’s share of the federal settlement with cigarette companies. The foundation since then has awarded more than $393 million in grants, which are intended to boost economies in rural communities traditionally dependent on the tobacco industry.

Golden LEAF President Dan Gerlach says the foundation takes great measures to hold its grantees accountable and to ensure investments are free of political influence. He also said the foundation is willing to do more.

That’s good. Because although conservative lawmakers and other opponents of Golden LEAF would have you believe this audit is a mandate for the N.C. General Assembly to dismantle the foundation, the report serves better as a playbook for making the foundation work better.

Some say the foundation, with a board appointed by the governor and legislative leaders, is too political in nature. But handing $70 million a year back over to lawmakers in Raleigh, given their recent track record, hardly seems like a step toward accountability.