Pikeville correcting violations - Wayne-Wilson News Leader, Fremont, NC

07 February 2008 — The recent investigation into town records didn’t discover wrongdoing on behalf of town clerk Kathie Fields, but a letter the town received from the Department of the State Treasurer did point out several town violations of North Carolina General Statutes. The board took steps at their February meeting to correct those violations.

The first violation the letter pointed out was failure to use a pre-audit certificate on town checks and obligations. The pre-audit certificate is a stamp that acknowledges that a disbursement has been approved as required by the Local Government Budget and Fiscal Control Act. Mayor Sieger stated that the stamp would be on all checks and obligations from now on.

Also noted was the town’s lack of separation of duties. Because the town has a limited salary budget, a small staff has been used to complete the large number of tasks required to operate the town.

The same person receives invoices, enters them into the system, writes and signs checks, and sends checks to vendors, as well as reconciling town bank accounts. The letter noted that lack of separation could lead to errors going undiscovered and opens the town to potential fraud.

To correct that violation, the board unanimously voted Monday night to hire a second part-time employee to help with office duties.

Another violation involved Mrs. Fields’ appointment as tax collector. This violated a statute that does not allow the town’s chief accounting officer to be appointed tax collector except by written permission of the Local Government Commission.

The board voted to turn collection of property taxes over to Wayne County. The county already handles vehicle taxes in town.

Mayor Sieger noted that the county would receive a 1.75 percent collection fee.

“We can’t do it ourselves for that cost,” he said.

The board unanimously approved the turnover.

The final issue pointed out by the Department of the Treasurer involved the bond maintained on the town finance officer. The town had maintained a $10,000 bond, but statues require a $50,000 bond. The town has since raised the bond amount.

With the addition of a town employee, the board also approved two budget amendments for extra equipment in the office. The board approved purchase of a second computer for town business, as well as a new server box to accommodate all the office computers.

The board also settled another old business matter regarding a Landscape Design/Jericho Farms sign.

The company originally came to the board in October to request a variance on the town sign ordinance after discovering that their sign violated the ordinance. However, in discussion of the situation, it was thought that the sign may also violate ordinances regarding a nearby trailer park.

After tabling the issue last month, Commissioner Vance Greeson brought back research to the board stating that in 1971 when the park was established, it was with the stipulation that a park be included. No structure was to be erected less than 180 feet from the center of the park, and the sign violated that stipulation.

Mayor Sieger pointed out that the company had specifically asked the board for a variance to allow the sign because it did violate ordinances.

Commissioner Lyman Galloway stated that he understood the ordinance to apply to permanent structures, and the sign didn’t really violate because it was easily moved.

Commissioner Al Greene also questioned if there was a statute of limitations on such issues, similar to an abandonment clause, because the area designated as the park had failed to really be used as such for several decades.

Town Attorney Jean Hollowell said she would have to look into the issue further to have any definitive answers on the question.

Commissioner Greeson said he wouldn’t be so persistent on the rules if citizens had not pointed out the sign as a concern. But since citizens spoke up, he felt it was his duty as a commissioner to discuss the issue.

Danny VanDevender of Landscape Design said he felt that being told to remove the sign would be penalizing the company unnecessarily.

“We followed DOT rules, kept the area clean,” he said. “We have approval of the land owner, so why should we be penalized for something that’s already been in effect?”

“If we’re going to enforce this ordinance, we need to enforce them all,” said Commissioner Dennis Lewis. “If we make an exception for one, we need to make an exception for all. We’ve done wrong by not enforcing this from the beginning.”

Commissioner Greeson moved to deny the variance request. He and Commissioner Edith McClenny voted for the motion, and Commissioners Greene and Galloway voted against it. Commissioner Lewis abstained from voting. Mayor Sieger broke the tie by voting against the motion.

Commissioner Greene then voted to allow the sign to remain until the lawyer could determine a final rule on the ordinance, at which time the company could be asked to change or remove the sign. The motion was unanimously approved.

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Issue of 7 February 2008

Wayne Wilson News Leader
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