Audit finds place Yanceyville on LGC assistance list; council asked to sign response letter

Town Attorney Lee Farmer told the council that the town’s audited financial statements contained significant deficiencies and material weaknesses, leading to designation of Financial Performance Indicators of Concern (FPIC). Farmer said that because of those findings, Yanceyville was placed on the Local Government Commission’s Units Assistance List and must submit a response to the Local Government Commission within 60 days of the auditor’s presentation.

Farmer said a draft response letter has been prepared and outlined recommended remedies: implement segregation-of-duties measures, perform a re-audit review for future expenditures, and continue work with Fidelity Bank and the law firm Scott & Watlington P.A. He also noted the town may need to adjust water and sewer fees in the next budget year to address bond deficiencies. Farmer asked that, absent objection, council members and the town manager sign and submit the response to the Local Government Commission.

Why this matters: placement on the Local Government Commission’s assistance list signals serious financial-control concerns and triggers oversight and required corrective steps; the council must act on a formal response and implement internal-control improvements.