The Local Government Commission will monitor county finance for at least the next year, county Manager Eddie Madden told commissioners last night. “It’s much like being audited by the IRS,” Madden explained.

Report By Logan K.

On october 29th, it was announced that, The local government watchdog arm of North Carolina state government will be keeping a closer eye on Columbus County’s finances as a result of its last two audits.

In April, 17 of the state’s 100 counties were on the Unit Assistance List, according to the Local Government Commission.

According to a report by the News Reporter

“Columbus County’s 2019-20 audit was the main reason for the county’s inclusion on the list, Madden said. That audit resulted in five concerns — three labeled “significant” — including a discrepancy of more than $750,000 in the county’s fund balance. Four of those findings had also been identified in the 2018-19 audit.

Madden said to expect a similar letter for the 2020-21 audit in the future as many of the same issues remained.

Madden pointed out to the board that neither he nor interim finance director Jay Leatherman worked for the county during the period of the 2019-20 audit, and Commissioners Lavern Coleman, Chris Smith and Brent Watts had not been elected. Madden and Leatherman arrived with only a few months left in the 2020-21 fiscal year, which ended June 30. 

After hearing the 2019-20 audit presentation at its early March meeting, the commissioners appointed Leatherman as interim finance director. After a closed session Finance Director Bobbie Faircloth, who presented the audit findings, was escorted out of the chambers during that closed session and suspended without pay the next day. 

Faircloth has since become the part-time project manager for the Town of Fair Bluff after leaving county employment May 3.

Madden was hired by Columbus County in late January but officially started as county manager on March 27, after the audit presentation.

Columbus County fired former finance director

The LGC cited deficiencies in the 2019-20 audit, Madden said. It’s likely the LGC will also issue a unit letter to the county for the 20-21 audit. Madden noted that the problems occurred before most of the board was elected, and before he was hired earlier this year. “

According to CCN News

“Madden was hired in March, and brought Jay Leatherman onboard as finance officer. The unit letter would normally have been mailed to county officials, Madden said, but he wanted to explain to the commissioners exactly what to expect.
The county already had difficulties with the LGC over the West Columbus Elementary School project and the Whiteville City Schools building program. Those issues were settled after negotiations with the LGC and a review of the financing.

The LGC will review all the county’s finances, Madden said, and will oversee next year’s budget process. The Commission has the authority to take over management of local governments in extreme cases.”

This is a developing story, Stay Tuned…

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