Spring Lake, N.C. — The Office of the State Auditor on Thursday announced new details in an investigation into the Town of Spring Lake’s finances.
Misuse of the town’s funds dates back to 2016, when an audit revealed dozens of officials and town employees in Spring Lake misspent nearly $460,000 over five years, racking up personal purchases on town credit cards, buying items without a purchase order and getting travel reimbursements without required paperwork.
In October 2021, state officials took control of Spring Lake’s finances, citing concerns that the town on the Cumberland-Harnett county line could default on its debt within a month. Spring Lake became the sixth local government unit under financial control of the Local Government Commission.
Key findings in the investigation announced Thursday include:
- The town’s former accounting technician used at least $430,112 of town funds for personal use.
- There was at least $36,400 in cash missing from the revenue department and the recreation department’s daily deposits.
- Town employees spent $102,877 of town funds on questionable credit card purchases.
- The town overpaid the former economic development director by $9,900.
On Thursday, state auditor Beth A. Wood recommended legal action should be considered against the former accounting technician, who was fired in July. At that time, the doors of the Spring Lake Town Hall were locked and some employees were sent home so the misuse of money could be investigated.
