Town of Spring Lake faces possible financial takeover by the state

For the second time in less than five weeks, Spring Lake has received a warning about a potential takeover of its finances by the state.

The Local Government Commission voted Monday to assume control of Spring Lake's finances if town officials violate terms laid out in the commission's resolution. If town officials breach their fiscal agreement with the commission, fail to provide the commission information or take action that impedes the state auditor's investigation, the state will have the authority to step in, according to a resolution released by the Department of the State Treasurer.

According to the commission's resolution, Spring Lake isn't in compliance with a state law that says local governments must "establish and maintain an accounting system designed to show in detail its assets, liabilities, equities, revenues, and expenditures."

Spring Lake has been under scrutiny from state officials as the town attempts to get its finances together. In June, the commission sent a warning to the town about a possible takeover if it did not pass a balanced budget. The town is currently being investigated for missing money and is undergoing an audit, according to state officials.

Read more: https://www.fayobserver.com/story/news/2021/07/27/town-spring-lake-faces-possible-financial-takeover-state-north-carolina/5374553001/
(Fayettesville Observer)