Twitter
Facebook
Instagram
WALLACE — The auditor conducting the state-required audit for the town of Wallace told the Town Council at their meeting on Nov. 13 that there were some “significant deficiencies” discovered during the audit. In addition to expenditures exceeding appropriations during the previous fiscal year, and a late debt service payment, the town also missed the deadline for completing the audit.
The auditor, T.D. Hill of the accounting firm RH CPAs, also said two “material weaknesses” included prior-period adjustments and preparation of financial statements.
Another concern expressed by Hill in his presentation was the town’s “fund balance as a percentage of expenditures.” The audit revealed that in the 2024 fiscal year, that percentage fell to 29.8 percent. The state’s Local Government Commission (LGC) minimum threshold is 34 percent. Hill’s report said, “This is considered a financial performance indicator and will require a formal response to be submitted to LGC within 60 days.”
During Hill’s presentation to the council, he showed several charts depicting the financial health of the town. One graphic summarizing the general fund revealed the expenditures of the town have exceeded the revenues each year from 2021 through 2024, with expenditures growing each year. In 2024, the graph stated the revenues into the town were $4,628,120 while expenditures were $5,519,314.
Despite the issues, Hill complimented Wallace Town Manager Rob Taylor, saying he had been cooperative in gathering all the information needed to complete the audit.
A few town council members had general questions for the auditor, but had no comments regarding the deficiencies or weaknesses outlined in the audit.
Wallace Mayor Jason Wells later told Duplin Journal that the late filing of the audit was the result of what he referred to as the “perfect storm.”
“Turnover in the finance director position, four in a year,” Wells said in a text message. He added that issues with implementing new software and getting new auditors up to speed also played a factor.
As far as the overages revealed in the audit, Wells said planned grant matches as well as the software issues were factors.
He said the issues were “things we could have fixed and dealt with. We just didn’t know where we were while new software was being implemented.”
Wells added that the budget included funds anticipated from FEMA that were not reimbursed.
The council also held a public hearing during the meeting regarding the rezoning of property located on Old Wilmington Road near NC Highway 11. The landowner requested that the 11 acres be rezoned to allow the placement of up to eight mobile homes on the property, which is located just outside the town limits, but within the extraterritorial jurisdiction of Wallace. After the hearing, the board approved the request.
Two more public hearings were scheduled by the council for their December meeting to consider a rezoning request and the annexation of property on NC Highway 41, just east of the Walmart area beside Rocking Horse Lane. The land is being developed for commercial use by Avery-Davis Investments of Knightdale, N.C. A portion of the property is currently zoned for residential use. The developers are asking that the affected land be rezoned as a highway business district.
Regarding the same location, the board agreed to the closure of the Olde Field Road on the property to open up the area for commercial construction.
During the public comment portion of the meeting, 12-year-old Isla Blanton addressed the council, requesting permission to place a “mini-food pantry” near the town hall area and also near the fire department.
“I recently noticed food pantries in Wallace have limited hours,” Blanton told the council. “Food insecurity is a reality. The government shutdown has increased the need for assistance.”
Blanton said she wanted to create a mini-food pantry that resembles the free book kiosks that she hopes people will stock with donated non-perishable food items.
Wells responded to Blanton’s request, saying he liked the idea and suggested Blanton contact Taylor to explore the best location and process for placing the food pantry.
Blanton is the daughter of Duane and Harley Blanton of Wallace and is in the 6th grade at Harrell’s Christian Academy.
In other business, the council approved a request from Taylor to amend the budget to allow funds designated for stormwater maintenance to be transferred to the project to improve water flow through the small pond at Farrior Park. The project has been completed and was mostly financed with a $115,000 grant to the town. The cost of the improvement exceeded the grant amount by $3,432.60.
Taylor informed the council that work is underway on the town’s capital improvement plan for the years 2026-2030. The council will vote on the plan at the December meeting.
