A recent state audit this month found that millions of dollars in the Rocky Mount city budget were mismanaged in recent years, which the auditor blamed on a lack of oversight and due diligence by the City Council.
Dave Boliek, the state auditor for North Carolina, said his office conducted the audit after receiving reports on a tip line, as well as direct reports to the auditor himself, that the city was in financial trouble. Concerns about the budget were also expressed publicly in a recent City Council meeting.
“Because of that City Council meeting, and what was reported publicly by the City Council, in addition to the tips that we received on our tip line, we felt it was imperative that we engage the city of Rocky Mount with an audit,” Boliek said.
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Since taking office in January 2025, Boliek said he’s received “more inquiries about the city of Rocky Mount than any other entity of state, local or county government.”
The city first discovered and notified the public of the financial crisis in September 2025, Mayor Sandy Roberson said in a press conference last week. Roberson said they asked the state auditor to come to Rocky Mount to conduct an investigation into the city’s finances.
One of the most notable findings from the report is a drop in the city’s cash and investment balance from roughly $100 million to $21.8 million between August 2023 and August 2025. Meanwhile, total annual purchases and other payments exceeded $300 million during fiscal year 2024.
The increase in annual purchases and payments mostly stemmed from personnel costs and capital projects. Police salaries were increased by 47%, then firefighter salaries increased by 22%, followed by a 12.2% increase applied to the city’s minimum salary range, the report said.
Rocky Mount, which is located along Interstate 95 and US 64 in both Nash and Edgecombe counties, has hoped that a new casino could jump-start its economy with tourism dollars. Capital spending toward a casino was one project the report identified as a concern. Others included redevelopment of a fire station and an enterprise vehicle fleet. Together, those amounted to $67.4 million for fiscal year 2024, signifying a 153% increase in spending from the previous fiscal year, the report said.
How it happened
Rocky Mount didn’t have adequate financial staff at the time and failed to reconcile its checking account for 13 months, Roberson said during the press conference. Without reconciliations, they just didn’t know how much money was in the account, he said.
The North Carolina Local Government Commission identified the city as a “municipality in financial distress” for three consecutive years before the audit, the auditor’s report said.
The commission warned Rocky Mount about issues such as declining revenue and fund balances, delayed financial reporting and chronic budget overruns in annual reviews and communications to city leadership, emphasizing that failure to make any changes would result in an “unsustainable” financial trajectory for the city, according to the report.
The city’s failure to address the commission’s concerns prompted Boliek’s office to step in, the report said. When asked by CPP whether city leaders were aware of the LGC’s warnings at the time, and what steps the city took in response, Roberson said: “Every year, the LGC reviews a municipality’s finances and makes recommendations on areas needed for improvement. In response, the municipality defines steps that they agree will be taken to ensure financial stability.”
The city’s financial troubles appear to date back to fiscal year 2021, after the loss of its longtime finance director. Since then, the city’s finance department has had five directors, including hires with “little local government finance experience,” according to the report. Other factors that contributed to the current financial instability included a lack of due diligence when hiring the former city manager, Keith Rogers Jr., and a lack of oversight by the Rocky Mount City Council.
During the press conference, Roberson said in many cases Rogers “bifurcated contracts so that they fell below the minimum threshold requiring council approval.” As a result, many contracts and jobs were created without the council’s knowledge or approval. Under Rogers specifically, personnel costs increased by 27%, and the 153% increase in spending on capital projects also occurred during his tenure, Roberson said.
Rogers was appointed as city manager in March 2023 by a unanimous vote from the City Council, despite being described as a “stretch candidate” by the executive search firm, POLIHIRE, which the city contracted to recruit candidates for the position, according to the auditor’s report.
When asked by Carolina Public Press about POLIHIRE’s description of Rogers, Roberson said the firm should’ve completed background checks on all potential candidates and does not remember Rogers being described as a “stretch candidate,” though the firm expressed this according to City Council meeting minutes, the auditor’s report said.
There is also no evidence that the Rocky Mount City Council conducted any reference checks of its own to assess Rogers’ qualifications for the job, the report said. Boliek said they still don’t know why.
Soon after Rogers’ appointment, city finances began to decline, Roberson said. Within that same year, City Council members Andre Knight and Reuben C. Blackwell IV became “suspicious” about city management and started voicing their concerns publicly, according to a press release from the city last year.
Council members Knight and Blackwell couldn’t be reached for comment.
While Rogers maintained support from the majority of the Rocky Mount City Council for much of his tenure, that support waned as concerns were increasingly raised, Roberson said. By August 2024, most council members voted to place Rogers on administrative leave, according to the press release. Having lost support from most of the council, Rogers resigned voluntarily, the mayor said.
The following June, Rogers began a new position as a county administrator for Charles City County, Virginia, where he still serves today, according to the county’s website. Rogers couldn’t be reached for comment.
As part of their investigation, auditors discovered that Rogers had a history of “poor management and decision-making” in his previous role as town manager in Dumfries, Virginia. In this role, he was engaged in a pattern of “unqualified hires, questionable salary increases without council approval, inadequate segregation of duties, and structurally unsound budgeting,” resulting in a $1 million overspend, the report said.
Other notable findings include a personal connection between Rogers and the former Rocky Mount human resources director before the hiring process, which was disclosed to auditors in interviews with current city employees and council members, the report said. When asked by CPP whether he was aware of this connection, Roberson said he didn’t remember seeing that statement in the audit.
Additionally, after being appointed city manager, Rogers asked POLIHIRE to help recruit the former finance director, who served in the position from September 2023 to September 2024. The former finance director was the only candidate considered for the position in the recruitment process, which is not standard practice, according to the report. This suggests the former finance director’s hiring may have been a “predetermined outcome,” the report said.
According to the report, the city has responded to the budget crisis by halting all “nonessential projects,” eliminating 86 full-time positions, and increasing property taxes and utility rates for residents.
How Rocky Mount is moving forward
While the general audit was just released to the public, the State Auditor’s office is also conducting additional reviews of “utility bills and procurement-card purchases related to the city of Rocky Mount,” said a spokesperson from the office.
The city hopes to receive the results from the State Auditor’s additional investigation sometime this spring, Roberson said. If further review reveals any laws were broken, Roberson said he will pursue criminal charges.
“Once received, the city will determine if there is a need to secure another outside forensic audit to investigate areas the State Auditor may not have researched,” he said. “The City Council and I are committed to uncover all answers we need.”
As far as what changes he hopes to see in Rocky Mount following the audit, Roberson said the “most important” change has already happened: hiring a new finance director, Cheryl Spivey, who came on in July 2025, Roberson’s chief of staff said.
“Cheryl Spivey has LGC experience and is taking the lead in bringing the city’s finances back in order,” Roberson said. “The city of Rocky Mount has also implemented enhanced oversight mechanisms, including mandatory monthly bank reconciliations for all significant accounts, formal review processes, and direct reporting to the City Council.”
Roberson also said the city is “committed to following each of the recommendations the State Auditor states in his report.”
Elton Daniels, the current city manager, said he wants to work collaboratively moving forward to address the identified issues and improve their systems and management.
“We remain focused on protecting essential services while building a more stable and resilient organization,” Daniels said. “Through deliberate and thoughtful actions, we are positioning the city to achieve a stronger and more sustainable financial footing in the future.”
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