The audit says a non-profit company called 2Plus ran the program through a contract with the North Carolina Department of Transportation.
Among the allegations, that vans were used to transport South Carolina residents work in North Carolina. Other vans were used by a resort on the Outer Banks to shuttle its nonresident alien workers between the resort property and local housing.
The audit also claims "2Plus billed DOT at least $163,272 for personal mileage fees, backup van fees, and insurance deductibles that appeared excessive or unreasonable."
The department said it was turning its findings over to the State Bureau of Investigation.
In its written response to the audit, the DOT said it concurred with many of the findings as was taken steps to strengthen oversight.
2Plus has received more than $4 million in state and federal funds over the last 11 years to operate the vanpool program.