Audit: Zebulon lacked proper financial oversight, overspent from general fund

July 21, 2026 - 03:34

The town of Zebulon operated without adequate financial safeguards, leading to overspending from its general fund, according to a state audit released Monday. The report from the State Auditor's Office found that the town lacked basic internal controls over its budgeting and spending processes, leaving taxpayer money vulnerable to misuse.

Auditors identified several specific failures. The town did not consistently monitor its budget against actual expenses, which allowed departments to overspend without detection. Officials also failed to properly document transfers between funds, making it difficult to track where money was going. The audit noted that the general fund, which covers day-to-day operations like police, fire, and public works, was particularly strained by unapproved expenditures.

The report did not accuse any individual of fraud, but it highlighted a pattern of weak oversight. For example, the town did not require purchase orders for many expenses, and invoices were often paid without a clear record of approval. The auditor recommended that Zebulon implement a formal purchasing policy, require monthly budget reviews, and improve training for staff handling public funds.

Town leaders have acknowledged the findings. In a written response included in the audit, officials said they have already started making changes, including hiring a new finance director and adopting stricter spending rules. The audit covers the fiscal year ending June 30, 2023, but the state warned that similar issues may persist until the new controls are fully in place.