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CASTALIA — The N.C. Local Government Commission has ordered Castalia town officials to hire an outside auditor.
The commission voted unanimously last week to adopt an enforcement resolution that requires Castalia to hire an outside entity to straighten out its finances.
The town hasn’t filed an annual audit report for the last three years, according to a press release from State Treasurer Dale Folwell, who chairs the commission.
Attempts to reach town officials for comment were unsuccessful.
Town officials received a notice of warning from the LGC heading into the commission’s Nov. 10 meeting that it planned to take action because Castalia reportedly didn’t submit financial audits in 2017, 2018 and 2019.
The commission classifies Castalia as a distressed unit, the first step in identifying and implementing long-term solutions for the water and wastewater systems.
The LGC’s resolution identifies governmental units that qualify for an initial round of viable utility reserve funding.
Castalia officials have 30 days to show they’re correcting the issue by hiring outside entities to complete and file the audits.
Also included in the action were 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.