State investigators examined more than $317,000 in credit-card transactions, while earlier government records show repeated warnings about the town’s financial oversight.

PILOT MOUNTAIN, N.C. — A small Surry County town is confronting serious questions about how public money was managed after its former town manager was indicted on a felony embezzlement charge.

But the investigation into former Town Manager Michael Boaz reveals something larger than questionable purchases on a government credit card.

State records show that Pilot Mountain’s elected leadership had received financial warnings years before the criminal indictment.

Nearly 800 transactions examined

On May 11, 2026, the North Carolina Office of the State Auditor released an investigative report examining 793 credit-card transactions totaling $317,604 between January 2022 and November 2024.

Investigators identified purchases that included:

• $2,300 in Visa gift cards.
• $10,758 in food-related purchases across 189 transactions.
• $2,139 in additional food purchases in King, North Carolina.
• $1,576 in DoorDash orders.
• $276 for ammunition without a documented business purpose.
• $419 for a hotel stay connected to a personal family vacation.

The total amount reviewed does not mean investigators established that every dollar was stolen. However, the report documented numerous purchases lacking adequate receipts, explanations, or legitimate government purposes.

Who was approving the spending?

One of the most troubling findings involved the town’s internal financial controls.

According to the State Auditor, Boaz was permitted under town policy to approve his own travel expenses.

Investigators also found that he used a stamp bearing a former mayor’s signature to sign checks, bypassing an independent second signature.

These practices raise questions about whether the town had sufficient safeguards to prevent improper spending.

State officials say warnings went back years

The concerns did not begin with the 2026 indictment.

In November 2024, then-State Treasurer Dale Folwell publicly challenged statements suggesting that Pilot Mountain had not received adequate warnings about its finances.

According to Folwell, Local Government Commission staff had been raising concerns about the town’s financial management for approximately eight years.

State officials had visited the town, sent written warnings, and entered into fiscal accountability agreements with local leadership in 2021 and 2023.

The warnings included concerns about insufficient available general fund reserves and weaknesses in financial controls.

That history raises a significant accountability issue: If elected officials had received repeated warnings, why were the problems not resolved sooner?

Money intended for community projects

Earlier financial reviews also identified more than $749,000 in budget amendments reportedly made without approval from the town’s Board of Commissioners.

Reporting on those findings indicated that restricted funds associated with emergency services facilities, street repairs, and other projects had been used to cover general operating expenses.

For residents, these concerns are about more than accounting procedures.

When restricted public funds are used improperly, projects and services that residents depend on can be put at risk.

Criminal case and town response

A Surry County grand jury indicted Boaz in May 2026 on a felony embezzlement charge.

The indictment represents a criminal accusation, not a finding of guilt.

In September, local reporting indicated that his case had been continued to October 12, 2026. The Johnny Report has not independently verified the outcome of that scheduled hearing.

Pilot Mountain’s current leadership has said it is strengthening financial oversight, reviewing reimbursement procedures, and evaluating additional safeguards.

The town has also hired a new town manager.

The larger accountability question

The state investigation identified questionable transactions, inadequate documentation, and financial oversight weaknesses.

But the earlier warnings create an additional issue for taxpayers.

Financial problems were flagged well before criminal charges were announced.

The public deserves to know which recommendations were implemented, which warnings went unaddressed, whether improper expenditures can be recovered, and what safeguards now protect the town’s money.

The central question is not simply whether one former official broke the law. It is whether the system responsible for protecting public money worked when residents needed it most.

The Johnny Report will continue following the criminal proceedings and the town’s financial accountability measures.

Sources & Public Records.

• NC State Auditor — Pilot Mountain Investigative Report (May 11, 2026)
• NC State Treasurer — Financial Warnings to Pilot Mountain (November 20, 2024)
• WXII 12 — Investigation and Questionable Spending
• WFDD — Former Town Manager Indicted