Auditor General finds "pervasive" control failures, possible fraud in Town of Greenville; FDLE referred

The Auditor General presented an operational audit of the Town of Greenville to the Joint Legislative Auditing Committee, reporting 31 findings that the auditors described as a "pervasive lack of controls" across governance, financial reporting, procurement, grants and personnel practices. The audit focused mostly on October 2022 through February 2024 but examined earlier transactions where necessary.

Auditor Derek Noonan told the committee the audit disclosed multiple control failures: town personnel failed to file candidate qualifying paperwork that led to a one-year council vacancy; meeting notices and minutes were often not posted in accordance with law; the mayor was recorded making a motion to appoint her sister to a council seat and the sister was later hired without documented authorization or a services agreement. The auditors cited missing or untimely financial-disclosure filings and identified business conducted with organizations related to council members or employees without documented public purpose.

The report found budget adoption and recording deficiencies, incomplete or delayed annual financial reports, accounting errors that hindered determination of current financial condition, and utility billing rates that were not supported by ordinances. Auditors also flagged grant administration problems, including a delayed grocery-store construction project with incomplete deliverables and uncertainty about remaining grant reimbursement eligibility.

Personnel and contracting issues were prominent. The audit noted a sequence of managerial staffing problems, longstanding clerk vacancy (affecting minute-taking), and a town manager contract that provided for 52 weeks of severance pay contrary to state law limiting severance. Auditors said payments and contracts sometimes lacked adequate documentation, purchase orders, or evidence of receipt.

Committee members probed details about P-card charges, procurement controls and whether criminal referrals were made. FDLE confirmed it had received a criminal referral from the town and was investigating. Town leadership told the committee that a new mayor and an almost entirely new council and staff have taken office and that they adopted seven new policies since the audit to strengthen procurement, financial controls, inventory and grant oversight. Town officials said they have engaged outside accounting help for bank reconciliations and are cooperating with the Auditor General and investigators.

The committee noted the Auditor General will return to Greenville in approximately 18 months for a follow-up audit to evaluate progress on correcting the findings.