LGC Approves Town Of Smithfield Loan, Assumes Control Of Pikeville’s Finances

RALEIGH – The Local Government Commission (LGC) on Tuesday voted to impound the books of the Town of Pikeville and assume control of its finances until its fiscal health is restored. According to the LGC, the Wayne County town has not submitted an audit for fiscal year 2020, has failed to keep its accounts current and has demonstrated other failures to comply with the Local Government Budget and Fiscal Control Act.

Pikeville’s audited financial statements for 2019 show it had just 4.8% of unrestricted available funds to meet its $765,000 budget. It has five debt payments totaling more than $158,000 coming due over the next few weeks.

In addition to Pikeville, the LGC previously has taken control of the financial affairs of Cliffside Sanitary District (Rutherford County), Kingstown (Cleveland County), Eureka (Wayne County), Robersonville (Martin County) and Spencer Mountain (Gaston County).

Smithfield Loan Approval
At Tuesday’s meeting, the Town of Smithfield secured approval for $784,572 to finance an expansion of the town’s police department building. LGC Secretary Sharon Edmundson commended the Town of Smithfield for working to improve their financial condition, which positioned them to seek approval for debt before the Commission. The town previously had been included on the DST Unit Assistance List for financial health or fiscal management concerns.

The Local Government Commission monitors more than 1,300 units of local government, and must approve most borrowing by those entities. It oversees independent audits, and provides resources, guidance and oversight on topics ranging from annual budgets, internal controls and debt management to financial guidance related to pension and other post-employment benefits funds. 

LINK: Town of Smithfield 2019-2020 Fiscal Year Audit
LINK: Town of Smithfield 2018-2019 Fiscal Year Audit

1 COMMENT

Leave a Reply