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Hope Mills mayor clarifies audit findings, apologizes for earlier lease claim
Summary
Mayor apologized for incorrectly saying the local chamber had been evicted and clarified audit details, saying state auditors received anonymous complaints and the confidential draft listed 23 allegations (2 substantiated, 3 partially substantiated), and invited the state auditor to review updated policies.
Mayor opened the May 11 budget workshop by apologizing to Commissioner Hamilton for permitting citizens to address her by name at a prior meeting and to Charlie Gardner Jr. for a mistaken report that the chamber had been evicted from its lease space. "They asked to terminate their lease early and I agreed to let them do so without any fine or penalty," the mayor said, reading correction details into the record.
The mayor then summarized the town's recent state audit process. He said the audit began in August 2025 after anonymous complaints to the state auditor's tip line and that the draft report contained 23 allegations, of which two were substantiated, three were partially substantiated and 18 were unsubstantiated. He noted the draft was confidential under North Carolina General Statute 147-64.6D and urged transparency as the town implements corrective actions.
The mayor described steps already taken: formal approval of revised purchasing, travel, credit-card and fund-balance policies and a 90-day timeline for completing certain corrective items. He invited the N.C. State Auditor's office to return after the town completes policy updates so staff and auditors could "re-look" at the town's changes and confirm adherence to recommendations.
The outgoing finance director's written recommendations were read into the record. Drew Holland recommended a set of actions intended to strengthen fiscal stability, including considering a 6-cent property-tax rate increase, avoiding one-time funds for recurring expenses, preserving street-department salaries in the general fund, keeping the planned 2% cost-of-living and 2% merit pool, and restoring $300,000 to fund-balance reserves as the audit advised.
Why it matters: The mayor framed tonight's session as part of a broader effort to correct procedural lapses identified by the auditor, to improve internal controls and to clarify public messaging after inaccurate reporting about the chamber lease circulated online. The mayor asked the board to await completed policy updates before asking the auditor to return.
What comes next: Staff said updated policies and clarifications would be circulated to the board and that the auditor's office could be invited back when staff and the new finance director have finished implementing recommendations.
