Charlotte Center for Legal Advocacy says state auditor’s IOLTA report found no misuse of funds by organization

The Charlotte Center for Legal Advocacy said the recently released performance audit of North Carolina’s Interest on Lawyers’ Trust Accounts program found no misuse of funds by the organization and made no findings specific to it, according to a press release from the advocacy center.

The organization noted that while it was named in the April 21 press release issued by the Office of the NC State Auditor, its direct reference in the audit report itself was limited to being listed as one of several examples of organizations that received IOLTA grants in 2024. The audit found no misappropriation of funds by the Advocacy Center, the release said.

“IOLTA funding is a critical resource that allows us to serve individuals and families who otherwise could not afford legal help,” said Larissa Mañón, CEO of the advocacy center. “We are proud that this audit reflects what we already know to be true: our organization maintains rigorous reporting, compliance and audit controls to ensure every dollar is used as intended.”

According to the press release, the advocacy center receives funding from the federal government, the state of North Carolina, and local governments, foundations and corporations, all of which require performance and financial reports. The organization also undergoes an independent financial audit each year, which is shared with NC IOLTA and other funders including the federal government.

The release described IOLTA as a standard legal financial tool used nationwide, in which attorneys temporarily hold client funds and the interest generated supports civil legal aid and other public services. In North Carolina, the press release noted, IOLTA has distributed more than $134 million since 1983 to expand access to justice for people with low incomes, without the use of taxpayer dollars.

The advocacy center said it supports the audit’s recommendations to enhance oversight as part of its commitment to transparency and accountability.

“We welcome strong oversight and clear standards,” Mañón said. “They reinforce public trust and strengthen the impact of programs like IOLTA. Transparency is essential — not just for accountability, but for ensuring that critical legal services remain available to those who need them most.”

The advocacy center joined other civil legal aid organizations across the state in calling for the reinstatement of IOLTA funding, which has been frozen by the North Carolina General Assembly since July 2025.