Local News

Audit: UNC Hospitals Official Had Discrepancies in Expense Reports

Posted June 28, 2007

— An audit released Thursday found the pharmacy director at UNC Hospitals, which also provides service to the University of North Carolina at Chapel Hill, received travel and phone reimbursements from the hospital and the school for the same expenses.

The audit, which doesn't name the director, also documents several instances where he was reimbursed for travel and phone expenses related to his family, which according to State Auditor Les Merritt, is against state law.

UNC Hospitals' public affairs office confirmed that Director James C. McAllister III is the subject of the auditor's investigation.

The university reimbursed McAllister $1,201.77 for a trip his son took to Las Vegas, according to the audit. McAllister said he unintentionally submitted the expense report and reimbursed the school the full cost of his son’s trip.

McAllister also submitted two expense reports for a business-related trip to Miami, the report found. The hospital and the university each reimbursed him $534.39 for the same airline ticket. On another trip to Cincinnati, the report found, he double-billed the hospital and university for his meals. In both cases, he placed the blame on an administrative assistant.

The audit also found the hospital and university reimbursed McAllister more than $3,400 for phone service on two different lines. According to Merritt, at least one of those phones was used by McAllister's son. The auditor’s office also found a pattern in which he routinely requested reimbursement for the telephone number with the highest monthly charges.

The auditor requested McAllister repay all of the duplicate reimbursements and face punishment from UNC Hospitals. In their response to the audit, UNC Hospitals and UNC-Chapel Hill agreed with the findings and said management is evaluating internal controls.

A letter from UNC Hospitals President Gary Park also said McAllister would be disciplined according to internal policy, but the letter does n't say what the punishment would be.


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  • Moo by you Jun 29, 2007

    I just read the audit. It's very clear that the investigation was very thorough and had been going on for a good while. Things have change a lot in the way the administration works between the Hospital and University now. The pharmacy director was an employee of the hospital 10 years ago, now it's a contract position. Oh well, thank goodness he got caught and if he looses his job over it, maybe some of the other cheats will get caught as well. Someone said to let Roy Cooper's office know about this so he can get to working on it. I believe it was his office that did the audit.

  • Moo by you Jun 29, 2007

    This is the same guy that was at Duke. I know the administrative assistant who worked for the director that McAllister replaced. I think I also heard that his assistant at Duke later came to UNC Hospitals to be his assistant. I don't believe the salary is correct. I had several years experience with the state pay scales, although it was 10 years ago, I don't believe they have increased that much. If they have, maybe I shouldn't have retired.

  • Pumpkin Jun 29, 2007

    ncsuspam you have falling and bumped your head - it happens at ncsu everyday - they just have not been caught - i work at ncsu and believe me, i know

  • ms b Jun 29, 2007

    I knew someone by this name (Jim McAlister) in pharmacy who used to be at Duke (~10 years ago). Son had same first name. don't know, but this may be the same guy. Too bad if it is because he always seemed a nice enough fellow. And yes, UNC DOES require original receipts - or a boatload of explanation and then you have to pay taxes on the reimbursement. At least on the academic side. We hear all kinds of horror stories about what goes on with the docs at the hospital, simply because folks are afraid to say not to them.

  • dianadarling Jun 29, 2007

    The N&O is reporting he has been removed.

  • robin_hood_2 Jun 29, 2007

    keep digging.

  • be the first to throw stones Jun 28, 2007

    In AMERICA, you are still innocent until proven guilty. Those of you who are so quick to judge should take a moment to consider how it would feel if it was YOU in the hot seat. Would you be willing to let the facts come completely to light before making a judgement? Can news coverage or the 'powers that be' skew the information at hand? (Can you say Nifong?) If he truly did these things, then he will get what he deserves...if not from UNC, then from a higher power. It is this mob mentality that makes us look like ignorant hicks to the rest of the nation.

  • ncsuspam Jun 28, 2007

    b/c in chapel hill people are really greedy and they don't have any common sense.. they more than likely are liberals

  • unchcspharmd Jun 28, 2007

    Why does someone making $188,824 per year (with a $14,632 bonus) need to risk it all over $3000?

  • Seeminglyopposed Jun 28, 2007

    I doubt if the McAllisters are the same, being it is UNC. So don't even go there, and you know why. The old race thing tarheel2. Because one was black and a thief that makes this one black and a thief?