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Zebulon — which has had four different town managers during the past two years — is facing scrutiny over its financial oversight in a new state auditor’s report released Monday.
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The report found the town was missing a contract for work done in 2025, accidentally drew more than $16,000 from a town employee’s bank account and sent duplicate payments for services.
The report was conducted after an anonymous tip, according to the auditor’s office.
It comes less than a week after another report, 2,600-pages long, detailed what the auditor called extravagant spending practices in Cary.
“While some errors were ultimately corrected, better controls would have prevented these problems from occurring in the first place,” State Auditor Dave Boliek said in a statement on Monday. “The Town of Zebulon has been cooperative throughout this process and recognized the importance of sound government practices. As the taxpayers’ watchdog, the State Auditor’s Office will continue to engage with local governments when needed, providing transparency and accountability to all corners of North Carolina.”
The town of Zebulon, about 24 miles east of downtown Raleigh, was billed for at least $4,500 worth of consulting work done by former interim Town Manager Taiwo Jaiyeoba in January 2025.
Jaiyeoba, a former city manager of Greensboro, filled in as manager for Zebulon in two stints after full-time town managers in the town resigned.
He provided the auditor’s office an invoice for $4,500 the town paid his firm for consulting related to “Town Manager transition, budget development, and miscellaneous support.”
Jaiyeoba was employed as interim manager from April 2025 until current Town Manager Katy Crosby took over in February 2026.
The previous town manager, Gilbert Todd, approved the consulting services, but the town could not provide the auditor’s office with a contract signed by other town officials.
Todd was only manager for about four months in 2025 before he and an assistant manager resigned.
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The town also hired a consultant in February 2025, also under Todd, and paid the consultant more than $22,000 over several months. The contract was based on execution of certain goals by the consultant and required invoices detailing the work done, but the consultant did not deliver on those goals, the town told the auditor’s office. The town could not provide invoices to the auditor’s office.
The town also made a duplicate $844 payment in 2023 and later that year it accidentally paid off a more than $16,000 credit card balance using a town accountant’s personal bank account. The town later voided the duplicate payment and reimbursed the accountant.
The town accidentally overpaid Jaiyeoba by over $6,000, which was later paid back.
And it has drawn more out of its unrestricted fund balance — money the town has in the bank — than its own financial procedures allow.
The town drew another $4.6 million from its reserves in its current $28.5 million budget, passed earlier this year, despite the policy.
The auditor’s office called for more security measures in spending and record keeping.
The town’s response, included in the report, acknowledges the seriousness of the financial problems.
Zebulon told the auditor’s office it will create a committee to review financial procedures and that town staff will present quarterly financial reports to the town council.
“The Town has already initiated many of the corrective actions described above and remains committed to continuously strengthening its governance, financial management, and internal control environment,” Crosby wrote to the auditor’s office on July 2.
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This story was originally published July 20, 2026 at 6:22 PM.