Up and Coming Weekly is a weekly publication in Fayetteville, NC and Fort Bragg, NC area offering local news, views, arts, entertainment and community event and business information.
Issue link: http://www.epageflip.net/i/1462311
8 UCW MARCH 23 -29, 2022 WWW.UPANDCOMINGWEEKLY.COM Audit Report into Spring Lake finances released by HANNAH LEE NEWS e Office of the State Auditor has released its final report into allegations of the misuse of funds in Spring Lake. e state auditor found that Spring Lake's former accounting technician used at least $430,112 of town funds for person- al use, at least $36,400 in cash was found to be missing from daily deposits, town employees spent $102,877 of town funds on questionable credit card purchases, the town overpaid the former economic de- velopment director $9,900, town officials failed to safeguard town vehicles and the town board did not maintain closed ses- sion meeting minutes for some meetings held during 2019 and 2020. Findings from this investigation are being referred to the Federal Bureau of Investigation and the State Bureau of Investigation to determine if there is suffi- cient evidence to pursue criminal charges related to the misappropriation of public funds. e state auditor's key recommenda- tions include the recommendation that the board consider seeking legal action against the former accounting technician, the board should ensure adherence to procedures governing financial operations designed to prevent and detect missing cash in the daily cash collection process, the current finance director should ensure that the procedures to prevent and detect missing cash in the daily cash collection process are being followed, the finance director should ensure monthly bank reconciliations are completed timely and accurately, the revenue supervisor should reconcile the collections reports to the deposit slips to ensure all monies collected are deposited into the town's bank account, the board should establish a comprehensive policy for credit card usage that includes requirements such as itemized receipts for purchases, a docu- mented town purpose for purchases, vali- dation that the purchases were included in the town's budget, review of all credit card documentation (including receipts and the documented business purpose) before approval of payment and finally the town should seek reimbursement for any amount of the overpayment not yet repaid by the former economic development director. In a response from Spring Lake Mayor Kia Anthony to the state auditor, Anthony states that the Board of Alderman ac- cepts the findings and recommendations contained in the report and will commit to working with the North Carolina Local Government Commission as well as the Office of State Auditor's to address the underlying basis for each finding. However, the state auditor said that Spring Lake has made several statements that "obscure an issue, mislead the reader and minimize the importance of the Office of State Auditor's findings and recommen- dations." e state auditor required Spring Lake to explain the corrective action it plans to take. e report states that while the town agreed with the findings in the report, the town's response did not include the required details. Without those details, the auditor states it will be difficult for the town and other stakeholders to monitor if corrective actions are being implemented and to ensure those responsible are held accountable. e Local Government Commission's Director, State and Local Government Finance Division Sharon Edmundson wrote to the state auditor agreeing that the town's response was not detailed enough. e state auditor also states in her report that if the town had followed their recommendations from the 2016 Investigative Report about questionable purchases, the issues found in the current investigation may not have occurred. Following an emergency board meeting ursday morning, Anthony held a press conference regarding the findings. "e findings in the report demand that those responsible be severely punished for their wrongdoing and that the board puts in place measures designed to prevent its recurrence. e board expects that everyone involved in misappropriating the town's resources will be prosecuted to the fullest extent of the law," Anthony said. Anthony also points out that members have been appointed to serve on the Audit Committee earlier this week and the former Wake County Manager will assist the board in identifying strong candidates for the roles of town manager and finance director. Spring Lake's finances were seized by state authorities in Oct. 2021 after the town had a $1 million loan that had not been reported to state officials. e major- ity of the Board of Alderman serving at that time. are no longer on the board. HANNAH LEE, Assistant Editor. COMMENTS? Editor@upandcom- ingweekly.com. 910-484-6200. Stephen A McDavid Financial Advisor 422 Mc Arthur Rd First Floor Fayetteville, NC 28311 910-488-3699 FREE HEALTH CARE • for Eligible uninsured Adults call 910.485.0555