More than 20-percent of residents recently signed a petition requesting a state audit with the hope of uncovering wrong-doings.
The preliminary findings show nearly 50 violations in Cedar Grove from October 1st, 2004, to December 31st, 2005.
Violations range from a high turnover rate of key administrative employees, to failing to adhere to the loan payment terms on more than $1 million dollars.
"We need to get that city straightened up,” says Coordinator of State Audit Janet Beier. “There is just too much going on over there, and no one is caring. You can't find the mayor. He has a business of his own. He's supposed to be over there over-seeing all the paperwork, all the bank accounts. He's just supposed to do the whole office. He needs to make sure things are done properly and he wasn't there."
State auditors are giving Cedar Grove officials until November 17th to respond with a written statement explaining the preliminary findings and violations.
After their response, auditors will provide recommendations for improvement.