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Four allegations related to employee pay and town purchases were filed against the town on Sept. 17, according to an investigation summary from the N.C. Office of the State Auditor. Two additional allegations were made during the investigation.

None of the allegations were substantiated, mostly because the town lacked records to prove the claims one way or another, the report said. One of the allegations was not investigated.

“We note that this investigation was not exhaustive and OSA (Office of the State Auditor) cannot guarantee the absence of any wrongdoing,� the investigation summary said. “Furthermore, this investigation does not preclude the possibility of future allegations, whether similar or different in nature, from being subject to investigation or audit by OSA.�

Board members, the mayor, the town’s attorney and the town clerk met with the office of the state auditor to go over the findings on March 24.

Lack of records, policy

The first allegation in the report accused the town of paying its interim police chief overtime pay instead of compensatory time, which is paid time off instead of overtime pay.

Auditors found the town’s overtime policies has an exemption policy for administrative, professional or managerial positions, but no policy outlines which employees are exempt from overtime. Because the policy did not exist, auditors could not determine whether the interim chief should have been given overtime pay or compensatory time.

Another allegation said a town employee used compensatory time they had not earned.

But the town does not maintain a record of accrued compensated absences, and the same employee who processes payroll keeps up with the accrual of compensated absences on a spreadsheet that gets overwritten every month. That, combined with the town’s lack of policy on which employees should receive overtime pay or compensatory time, left auditors unable to prove the allegation.

The town was also accused of buying $1,000 of gravel for a public event without getting approval from its board of aldermen.

Auditors discovered the town does not have purchasing policies and procedures, so it is not clear how expensive a purchase must be to require the board’s approval. Auditors were unable to substantiate the claim.

Disproved allegations

Two claims were proven wrong, including an allegation that the town was holding meetings without giving proper notice.

Auditors found the town provided notice of its public meetings at town hall, the post office and on the town’s Facebook page.

The second complaint centered around the town buying property that was partly owned by town attorney Rob Denton.

The allegation said Denton had a conflict of interest when he sold the property to the town, but auditors said the claim was unsubstantiated since the town worked with an attorney from a different law firm for the purchase.

Auditors did not investigate the sixth allegation, that members of the town’s board of alderman tried to convince another board member which candidate should be named police chief. The investigation summary said the claim doesn’t contain elements of fraud, waste or abuse of public funds.

Auditor recommendations

Auditors recommended the town take several steps moving forward:

• Maintain records documenting which employees are exempt from overtime.
• Maintain documentation of accrued absences.
• Segregate duties so the employee responsible for payroll is not also responsible for keeping track of accrued compensated absences.
• Develop purchasing policies and procedures making it clear when board approval is needed for a purchase.

Michelle Lewis, mayor of Glen Alpine, said the board of aldermen plans to discuss the recommendations at its April 14 meeting.