The state Auditor says two Princeville town officials misspent public money.
Beth Wood says a 2011 audit of the eastern North Carolina town's finances led to a probe that discovered there were no receipts for thousands of dollars in purchases made by the mayor and a former finance director. She says the state has since taken control of Princeville's books. Wood has also recommended ways that town commissioners can try to recoup the money.
"For anything that there is no supporting documentation that it's a business purpose for the town, that the commissioners seek reimbursement," says Wood.
"They were entering into contracts for which they hadn't budgeted enough money. Make sure that the commissioners are watching expenditures each month and comparing that to what they budgeted to make sure they're not overspending."
Princeville is the first town in America founded by Blacks. Wood sent her findings to the Edgecombe District Attorney. The SBI and the IRS are also investigating.