State Auditor Confirms Investigation Into Town Of Benson

BENSON, N.C. — The North Carolina Office of the State Auditor has confirmed it is investigating the Town of Benson’s budgeting practices and financial management and has already identified areas of concern as the review continues.

In a statement to Johnston County Report, Randy Brechbiel, communications director for the North Carolina Office of the State Auditor, confirmed the agency engaged the Town of Benson in mid-May.

“The State Auditor’s Office engaged the Town of Benson in mid-May to look into the Town’s budgeting practices and financial management,” Brechbiel said. “We’ve identified some areas of concern, but the investigation remains ongoing.”

The acknowledgement that state auditors have already identified concerns raises additional questions about the town’s financial operations and suggests the review has progressed beyond a routine request for information.

The investigation comes as Benson officials continue to grapple with a severe financial crisis that town leaders say developed over several years.

During a May 13 budget workshop, former Town Manager Dane Rideout told commissioners the town was facing a “crisis across all departments” and estimated Benson’s negative fund balance at approximately $2.75 million. Rideout said the town’s reserve funds had been depleted and described years of overspending and financial mismanagement that contributed to the situation.

“There are no funds in the rainy day funds across the Town of Benson,” Rideout said during the meeting. “All those funds had been expended when I started.”

Rideout told commissioners the town had repeatedly spent more money than it generated in revenue while drawing down reserve funds that should have been maintained for emergencies and future needs. He also cited years of poor financial oversight, delayed revenue adjustments, and spending decisions that left the town in a weakened financial position.

Information obtained by Johnston County Report indicates the state review is examining multiple years of financial records and includes a review of accounting practices, budgeting procedures, financial controls, and overall fiscal management dating back to at least fiscal year 2021.

The Auditor’s Office has not disclosed the nature of the concerns identified thus far, nor has it indicated whether the review was prompted by a complaint, referral, financial reporting irregularity, or information developed independently by investigators.

The state review comes during a period of significant upheaval within Benson’s municipal government.

On May 21, Rideout resigned following controversy surrounding comments that surfaced on social media. Assistant Town Manager Calla Godwin also resigned, citing what she described as a hostile work environment.

Those departures left Benson without its top two administrative officials and added to ongoing instability within town leadership. Benson has employed eight town managers during the past five years.

Meanwhile, town leaders are attempting to address mounting financial challenges through spending reductions, departmental restructuring, and the elimination of vacant positions. Rideout previously told commissioners the town was working to recover from years of financial decisions that contributed to the town’s fiscal problems.

The Office of the State Auditor has not provided a timeline for completion of the investigation or indicated when any findings may be released publicly.

Johnston County Report has requested additional information from the Auditor’s Office regarding the scope of the investigation and the concerns identified by investigators. No further details were immediately available.