NC Audit Raises Serious Questions About State Bar Grant Money

A state audit is shining a harsh light on the North Carolina State Bar’s handling of grant money, revealing that more than $30 million in awards lacked proper assurance that funds were being used appropriately.

At the center of the controversy is the Interest on Lawyers’ Trust Accounts program, better known as IOLTA. The program collects interest from certain attorney trust accounts and distributes those funds as grants. But according to the audit, major payments went out without independent verification to confirm accountability from some of the top recipients.

First-term Republican State Auditor Dave Boliek did not mince words. He said attorneys across North Carolina are forced to participate in the IOLTA system, yet the money taken from those accounts is being directed to organizations with plainly partisan and political agendas. He argued that as the program continues to expand, taxpayers and legal professionals alike have every reason to demand stronger oversight.

The numbers alone tell a troubling story. IOLTA revenue and grant awards climbed sharply, rising from $3 million in 2018 to $16.7 million in 2024. Grant payments also surged, doubling from $6 million in 2023 to $11.9 million in 2025.

Among the largest grants flagged in the audit were $4.5 million to Legal Aid of North Carolina for several programs, more than $1 million to the North Carolina Justice Center, more than $1 million to Pisgah Legal Services, and $555,000 to the Charlotte Center for Legal Advocacy. According to the audit, those payments were made without requiring independent verification.

The audit’s findings are likely to intensify concerns about transparency, accountability, and political bias in a program that operates using money lawyers are compelled to surrender from trust account interest. With millions more dollars flowing through the system than in years past, calls for deeper scrutiny are only growing louder.