State Treasurer Dale Folwell has instructed State Auditor Beth Wood to conduct a “thorough audit” of Goldsboro’s books amid concerns that “its finances might be in disarray and therefore vulnerable to mismanagement or misappropriation.”
The decision, which was announced via a press release earlier today, comes after the city failed to submit a required annual audit the past two years.
“It is troubling that the state’s 30th largest city, the county seat and home to Seymour Johnson Air Force Base, no less, has been unable to get its act together to conduct a basic but critical oversight function. Audits are necessary to assess financial well-being, to ensure bills are being paid and money is not missing,” Folwell said, adding that Goldsboro has not only failed to submit audits for 2020 and 2021, but its 2019 audit contained multiple bookkeeping adjustments to capital assets and notes receivable — a potential sign of “major weaknesses” in day-to-day operations.
“We are very appreciative of Finance Director Catherine Gwynn’s efforts at resolving these issues. However, the longer audits are missing, the higher the odds are that there are internal financial control issues. If there are internal control issues, the potential for waste, fraud and abuse increases,” Folwell said. “Hardworking Goldsboro taxpayers deserve to know their elected and appointed officials uphold the highest standards as stewards of public funds. That confidence is lacking at this point, so I am asking State Auditor Beth Wood to investigate the city’s books and financial statements. We stand ready, willing and able to assist her staff, the city administration and elected officials in this process, and to make sure all records are properly preserved for examination.”
