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Purpose
The Office of the State Auditor initiated an investigative audit in response to nine allegations received regarding the Town of Fremont (Town). During the investigative audit, five additional allegations were added to the investigative audit. The allegations that were substantiated are included in this report. The period covered by the allegations spanned seven fiscal years
(2014-2021).

Background
The Town is located in Wayne County, North Carolina. According to the 2022 census population estimate, the Town had approximately 1,190 residents.

1 The Town operates under a Mayor-Council form of government, whereby the Mayor is elected directly by the voters. The Board of Aldermen appoints the Town Administrator to carry out the day-to-day administrative operations of the Town.

2 For the fiscal year ending June 30, 2024, the Town is operating on a budget of approximately
$4.35 million for its General Fund, Water and Sewer Fund, and Electric Fund.

Key Findings
 The former Town Administrator (A) and former Mayor improperly used Town property by allowing two individuals to reside in Town Hall for approximately six months.
 The Town did not report to the Internal Revenue Service $235,013 of compensation paid to the former Town Administrator (A) and former Payroll Clerk for services performed from 2014 through 2021.
 The Town’s former Payroll Clerk paid herself and two other employees for more holiday time than they earned. The total overpayment was $14,268 during the period January 2014 – December 2021.
 The Town did not ensure that the compensation for the former Town Administrator (A)
and the former Payroll Clerk was authorized and accurate. As a result, there is no
assurance that over $500,000 in compensation over a seven-year period was accurate.

INV-2024-0884

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