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Castalia in hot water with state over audits

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CASTALIA — Town officials have received a notice of warning from the state for not filing annual audits for the last three years.

The Local Government Commission is scheduled to take action on the matter at its meeting Tuesday, according to a press release issued Monday by State Treasurer Dale Folwell, who chairs the commission.

Castalia is on the agenda for the LGC’s next meeting for not submitting financial audits in 2017, 2018 and 2019.

The commission will determine whether to classify Castalia as a distressed unit, the first step in identifying and implementing long-term solutions for the water and wastewater systems.

The LGC will consider a resolution to adopt criteria and identify governmental units that qualify for an initial round of Viable Utility Reserve funding.

Resolutions will be voted on to issue notices of warning to several municipalities for noncompliance with statutory requirements to submit annual audits to the LGC. The municipalities will be given 30 days to show they’re correcting the issues by hiring outside entities to complete and file the audits.

Also included in the action are Wilkesboro, the county seat of Wilkes County, for failure to submit annual audits for 2018 and 2019, and Ronda, also in Wilkes County, for failure to submit annual audits for 2018 and 2019.