The state's auditor general office says the new report covers problems that have been going on for years.
Outside leaders say business is bad at the city hall in Hampton.
A recent state audit shows everything from questionable bookkeeping and unaccounted spending, to uninsured city police cars.
"It just was not a good situation," said state senator Rob Bradley.
Bradford county sheriff Gordon Smith says that's an understatement.
"There's been outright criminal acts in the city of Hampton where people have stolen money from the taxpayers. Hampton's a wonderful city with beautiful people, hardworking people that go to work, do what they're supposed to, come home, got one of our best elementary schools in the county. These people are just good people and they've been taken advantage of," said Bradford county sheriff Gordon Smith.
Smith says Hampton police chief John Hodges is partially to blame.
Hodges says the audit is nothing more than a witch hunt.
"I'm disturbed about what's really going on here. What the public is being led to believe is that there's corruption here and there is none. I've been here for thirty one years and if I've seen any sign of corruption, I'd be taking action," said Hodges.
The controversy will definitely continue.
This audit may close the door on the city of Hampton.
State leaders say there's no timetable regarding the future of Hampton's status.
But the state is withholding some funding until some of the problems are fixed.