RALEIGH -- Republican Governor Pat McCrory is reacting to a highly critical audit which showed some $1.6 million wasted in the NC Tracks Medicaid billing system, both during the first years of his term and the last years of the term of Democratic Governor Bev Perdue.

The audit said there was hiring of employees who were friends and relatives of a department manager and excessive payments of overtime and temporary help.

"It needs to be corrected and not done again. The people who were doing this were hirees from the previous administration."

While the problems predate McCrory's term, State Auditor Beth Wood said she made the Department of Health and Human Services Department aware of problems when his administration took office. The person who was in charge of NC Tracks at the time of the problems has since retired.