North Carolina State Audit Uncovers Brazen Fiscal Mismanagement in Elm City; Town Officials Cited for Self-Dealing

A North Carolina state audit of Elm City found unauthorized payments to mayors, Facebook Marketplace truck buys, and missing receipts for thousands of dollars.

By: AXL Media

Published: Mar 28, 2026, 9:04 AM EDT

Source: Information for this report was sourced from The News & Observer

A Culture of Slopshod Record-Keeping

The North Carolina State Auditor’s office has released a scathing report detailing years of fiscal neglect in the small town of Elm City. Spanning from 2022 to 2025, the audit paints a picture of a municipal government operating with little to no oversight. Key findings include town officials performing manual labor for the town without board approval and a total lack of documentation for various high-value reimbursements. State Auditor Dave Boliek emphasized that these repeated violations of town policy have significantly increased the risk of fraud, waste, and abuse of public tax dollars.

Self-Dealing and Conflict-of-Interest Violations

The audit highlighted several "diabolical" examples of self-dealing involving former town leaders. In one instance, a former commissioner received over $2,000 for performing repairs on town vehicles without providing a single invoice for parts or labor. In another case, a former mayor was paid $275 to shampoo carpets at Town Hall and a local sheriff’s substation using a cleaning machine borrowed from a church. These payments were made without hourly rates, time logs, or price comparisons, violating the town’s established conflict-of-interest policies.

Facebook Marketplace and Auction Purchases

Elm City’s procurement process was described as highly unconventional and undocumented. In 2024, a former mayor received a $2,500 reimbursement for purchasing a 2009 truck via Facebook Marketplace, claiming she "knew the public works department needed another truck." There was no record of board approval for this transaction. Additionally, the audit noted the purchase of a trailer at an auction hosted by the mayor's cousin, further blurring the lines between municipal business and personal family connections.