A recent investigation by the North Carolina Office of the State Auditor (OSA) has uncovered fraudulent activities within the Town of Mount Olive's Water Department and Municipal Airport. The probe, initiated by tips to the State Auditor's Tipline, has brought to light troubling incidents of financial mismanagement and protocol breaches.
Key findings from the audit include the discovery that an employee of the water department was able to not only void numerous monthly cutoff fees but also to manipulate system records, thereby avoiding disconnection of her own utilities without payment. In a similar vein, a town commissioner repeatedly had his utility cutoff fee waived and maintained service despite an outstanding balance that eventually totaled $942. Furthermore, due to errors in utility rate entry, Mount Olive saw a loss of over $210,000 in revenue. These infractions show a clear need to swiftly act on the recommendations provided by OSA.
State Auditor Dave Boliek commented on the importance of proper local management, stating, "Proper management at the local level is incredibly important to ensuring resources are not abused and protocol is followed." His office's investigative division, after a thorough examination, identified significant issues that have been acknowledged by local officials. "Now, it's time for our recommendations to be put into action," Boliek added.
The report also detailed irregularities in the operations of the municipal airport. The town was found to have been purchasing fuel on behalf of the airport operator, in contradiction to the contractual obligations of the latter. Moreover, the airport operator engaged in risky business by allowing fuel purchases on in-house credit, while the town's finance director failed effectively to verify monthly fuel commission invoices.
In the wake of the findings, Interim Town Manager Glenn Holland conveyed the town's stance, stating that Mount Olive "takes these allegations seriously" and accepts all findings and recommendations of the report. It is an affirmation indicating the town's readiness to confront these challenges head-on and to restore proper procedures and accountability within its departments.
