The North Carolina State Auditors Office released the official report this morning regarding an investigation into the Town of Taylorsville finances and procedures.
The investigation began in January.
The report states:
Key Findings
. From March 2006 through January 2023, the Town paid Miller Septic Service, a business owned by two Town employees, $746,839 for septic and sewer services in violation of the Town’s Procurement Policy.
The Town did not have any procedures in place to ensure that the owners of Miller Septic Service were not performing services for the Town, through the company, while they were being paid as Town employees.
KEY RECOMMENDATIONS
The Town Council should ensure that the Town Manager enforces the Town Procurement Policy.
The Town Council should ensure that the Town has safeguards, such as policies and procedures, to prevent employees from being paid through their company and the Town at the same time.
The report states
The former Town Manager’s (David Odom) approval of payments made to Miller Septic Service, a company owned by two Town employees, showed potential favoritism and preferential treatment during the purchasing process for more than 17 years. The former Town Manager ignored his responsibility to ensure that there was no favoritism in the purchasing process. The Town’s Procurement Policy states: The Town of Taylorsville procurement practices are based on the principle of fair and open competition. The practice of favoritism, whether to the user, department, or a vendor, is not permissible. All persons involved in the procurement process have a responsibility to provide fiscal stewardship when expending Town funds. (emphasis added)
Former Town Manager Did Not Enforce Policy The former Town Manager did not follow or enforce the Procurement Policy when purchasing services from Miller Septic Service. The former Town Manager was aware of the policy prohibiting purchases from or through employees of the Town government. In fact, he acknowledged his understanding of the policy to investigators in a discussion on March 16, 2023. Despite being aware of the Town’s policy, he continued to purchase services from Miller Septic Service. Town Procurement Policy The Town Procurement Policy prohibits the Town from making purchases from or through companies in which Town employees have a financial interest. Specifically, the Procurement Policy states: In accordance with the Town’s Ethics Policy, purchasing from or through employees of town government or through companies in which town employees have a financial interest, either director or indirectly, are not permitted. Recommendation The Town Council should ensure that the Town Manager enforces all policies, including the Procurement Policy.
According to current Town Manager Aaron Wike, the investigation is complete by the Office of the State Auditor.
The findings have been referred to the District Attorney to determine if there is sufficient evidence to pursue criminal charges.
To view the complete report
https://www.auditor.nc.gov/documents/reports/investigative/inv-2023-0785/open