Pender County misses state audit deadline, seeks to avoid loss of sales tax revenue
PENDER COUNTY, NC (WWAY) — Pender County has missed the state deadline to submit its annual financial audit, prompting county officials to seek an appeal that could prevent the loss of state sales tax revenue.
The deadline to submit the audit to North Carolina’s Local Government Commission (LGC) passed on Tuesday.
The missed deadline follows questions raised during a Pender County Board of Commissioners meeting in May, when Commissioner Randy Burton asked Finance Director Margaret Blue about the status of the audit.
“Speaking of audits, how’s ours?” Burton asked.
“It’s coming along, slowly but surely,” Blue responded.
“It hasn’t been submitted or finished yet, right?” Burton asked.
“Correct,” said Blue in response.
Following that meeting, WWAY contacted Pender County Communications Manager Brandi Cobb, who said staff turnover within the county’s finance department had slowed the audit process.
By missing the deadline, the county could lose up to $140,000 in state sales tax revenue, money that could be used to help fund county priorities, including public schools.
In a statement provided to WWAY on Wednesday, Cobb said the county has already taken steps to prevent any funding from being withheld.
“Staff have submitted the appeal form required by the LGC to delay any potential withholding action and have communications from the LGC that such appeals will be deemed successful,” Cobb said in the statement.
The Local Government Commission oversees financial audits for counties and municipalities across North Carolina and enforces state reporting requirements.
Cobb said the county’s independent audit firm will submit the completed audit to the LGC once it is finished, but did not provide a timeline for when that will occur.
The audit delay comes one week after the Pender County Board of Commissioners unanimously approved using $2.7 million from the county’s fund balance to cover a budget shortfall for Pender County Schools after school leaders requested additional local funding.
