A defunct Hoke County nonprofit did a poor job keeping track of state grants and may have used some of the money on personal expenses, according to a state audit released today.

Hoke County Youth and Family Services closed in June 2006 after five years operating. It served domestic violence victims in Hoke and surrounding counties.

State Auditor Les Merritt said a review of the nonprofit's books showed that it did not keep adequate records, that its executive director made cash withdrawals shortly before the organization closed and that it owed the state back taxes, reports Dan Kane.

"After spending over $135,000 of the taxpayers' money, the organization is no longer in existence and cannot supply adequate documentation on how those funds were spent," Merritt said in a news release. "I highly recommend that law enforcement officials investigate whether these funds should be returned to the taxpayers for the public's use."

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Fred Aikens will run for the Democratic nomination for state auditor.

Aikens, 57, is a retired state deputy of corrections and transportation and a retired colonel for the U.S. Army and N.C. National Guard. He served in Kuwait in 2003.

He's also been on numerous government councils and local nonprofits, including a stint chairing the State Government Information Technology Council.

If he wins the primary, Aikens plans to participate in a pilot program for public financing of the race. He said he hopes to increase accountability and reduce the focus of state government on campaign donors.

"I think we have seen enough scandal in Raleigh recently," he said in a statement. "It's time to clean up the mess."

Aikens will face Beth Wood in the primary. Incumbent Republican Les Merritt is seeking re-election.