It's probably much ado about mostly nothing. They probably should not have closed 4 hours early to host this event, but they did have a plausible reason to host it; it was not just somebody needing space for their private sorority event who didn't want to pay, but one in a series of community outreach events. The tactics the auditor used were overly aggressive... however, the information the auditor was fed was not right either and it is hard for me to tell whether the tactics were intended to get to the bottom of it or score a political win. Probably just a polite ask for information would have closed this issue without a problem.