Special Report on Charlotte Police Chief Settlement Highlights Lack of Transparency, Risk Management Fund

The North Carolina Office of the State Auditor (OSA) has released its completed special reporton the $305,000 settlement agreement between the City of Charlotte and Charlotte-Mecklenburg Police Department Chief of Police Johnny Jennings.

The report was conducted to determine the circumstances and sources of funding for the initially undisclosed $305,000 payment. OSA's review found that of the total payment, $280,000 came from the City's General Fund and $25,000 came from the Risk Management Fund. The Risk Management Fund, which is typically used to pay claims made against the City, had a total of $27.4 million in expenses for Fiscal Year 2024.

"We launched this investigation because the people of Charlotte deserve to know how their money is being spent. This is the people's money, and it shouldn't be kept behind closed doors," said State Auditor Boliek. "Our report brought transparency to the City of Charlotte. However, as shown in the mayor's response, City leadership doesn't share our interest in being open and transparent about spending the people's money."

The payment had been kept from the public until State Auditor Dave Boliek requestedCharlotte Mayor Vi Lyles disclose the amount. Within five days of OSA's engagement, Police Chief Jennings announced his upcoming retirement and released information about the agreement. The breakdown of the settlement is as follows:

• $175,000 in severance pay from the General Fund
• $45,699 in a retention bonus from the General Fund
• $45,284 value of extra vacation days from the General Fund
• $25,000 legal fee from the Risk Management Fund
• $14,017 in retroactive pay increase from the General Fund

The special report provided three recommendations including improving transparency in settlement reporting, the timely release of closed-session minutes, and reevaluating the use of the General Fund for settlement payments. The response from the City of Charlotte is included in the report.