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Bill Summary · HB 1094

Summary of HB 1094 (Session 2025, North Carolina) – Ferry Division Performance Audit

Purpose and Intent

  • Direct the Office of the State Auditor to conduct a comprehensive performance audit of the Ferry Division of the North Carolina Department of Transportation (NCDOT).
  • The audit is recommended by the Joint Legislative Transportation Oversight Committee and is intended to assess financial practices, operations, and strategic options to improve efficiency, revenue, and cost management.

Key Provisions

  1. Scope of the Audit

    • The Office of the State Auditor shall perform a performance audit of the Ferry Division, covering:
      • (a) Financial aspects: operations and maintenance spending and budget practices.
      • (b) Operational evaluation: current operations, capital projects, maintenance activities, and long-term strategies to maximize revenue and reduce costs.
      • (c) Route and schedule evaluation: assessment of the current route system and potential adjustments to maximize revenue and minimize costs.
      • (d) Revenue diversification: exploration of options to diversify revenue to support ferry capital project needs and recoup operating costs.
      • (e) Additional items the State Auditor deems relevant to evaluate.

  2. Reporting Timeline

    • The State Auditor must deliver the audit report no later than October 1, 2026.
    • The report shall be submitted to:
      • Joint Legislative Transportation Oversight Committee
      • Fiscal Research Division

  3. Effective Date

    • The act becomes effective upon becoming law.

Effects and Impact

  • Who is Affected:

    • The Ferry Division of NCDOT and, more broadly, entities involved in state transportation budgeting, capital projects, and revenue planning.

  • Financial Oversight:

    • A formal financial audit of spending, budgeting practices, and maintenance costs within the Ferry Division.
    • Identification of cost-saving opportunities and efficiency improvements.

  • Operational Improvements:

    • Evaluation of current operations and capital projects with recommendations for long-term strategies to improve cost efficiency and revenue generation.

  • Strategic Revenue Considerations:

    • Analysis of route system effectiveness and potential adjustments to routes and schedules aimed at increasing revenue and reducing operating costs.
    • Exploration of diversified revenue streams to fund capital projects and cover operating costs.

  • Timeline and Accountability:

    • A concrete reporting deadline (October 1, 2026) to ensure timely assessment and oversight.
    • Findings to inform the Joint Legislative Transportation Oversight Committee and the Fiscal Research Division.

Additional Notes

  • The bill is sponsored by Representative Iler, with Co-sponsors Representative Phil Shepard and Representative Frank Iler.
  • The short title is Ferry Division Performance Audit; it is a public bill.
  • The act does not specify remediation steps or funding mechanisms beyond the audit mandate; it focuses on assessment and recommendations to improve financial and operational performance.

Overall takeaway

HB 1094 requires a formal, state-level performance audit of the NC Ferry Division, covering finances, operations, route efficiency, and potential new revenue options, with a final report due by October 1, 2026 to legislative oversight bodies. This aims to enhance efficiency, affordability, and sustainability of ferry services.

Compiled from official sources — confirm details with the bill’s official record.

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