Audit finds Taylorsville paid over $746K to company owned by town employees

A sign welcoming visitors to the town of Taylorsville is shown. FILE

RALEIGH — A new audit from the N.C. State Auditor’s Office (OSA) reports the findings of an investigation into allegations pertaining to the town of Taylorsville’s contract with a company owned by town employees called Miller Septic Service.

Taylorsville is located in Alexander County and has a population of 2,300 people per the 2022 U.S. Census.

The findings include $746,839 for septic and sewer services paid by the town to that company for services performed “in violation of the Town’s Procurement Policy.”

The audit also says the work Miller Septic performed was conducted during the work hours for the town by the employees involved in the company. The audit spanned the time period of March 2006 through January 2023.

“For the fiscal year ended June 30, 2023, the Town operated on a budget of approximately $4.9 million for its General Fund and Water and Sewer Enterprise Fund,” per the audit report.

The audit says the payments went through because there were no procedures in place to make sure the employees who own Miller Septic Service were not being paid twice; once for their work for the town and again through payments to their company.

Recommendations to correct the matter include the town council ensuring that the town manager enforces procurement policies and that appropriate procedures be put in place to prevent such instances from occurring.

In its response, officials from Taylorsville agreed with the findings and included corrective measures to be taken with regard to town policies, procedures, fiscal management, and procurement methods.

“Under new management, all policies will be strictly followed and monitored for compliance,” the Taylorsville Town Council wrote in its response to the audit.

The council members also said Aaron Wilke had been named as the new town manager as of Oct. 3 and that he would be following all policies and procedures accordingly.

About A.P. Dillon 1213 Articles
A.P. Dillon is a North State Journal reporter located near Raleigh, North Carolina. Find her on Twitter: @APDillon_