This post was originally published on this site.
WHITEVILLE, N.C. (WECT) – A financial audit found a roughly $1.9 million error in the City of Whiteville’s books, something city leadership said it’s working to address immediately.
According to a copy of the draft 2025 financial audit, which WECT obtained through a public records request, the city’s financial reports didn’t show the true value of the city’s wealth. They had to make a $1.859 million adjustment to capital assets, with their financial records not reconciled accurately, according to the audit.
As a result of the error, “The City’s management and other users of the financial statements do not have accurate information for decisions-making and monitoring of the City’s financial position and adherence to laws, regulations, and other requirements,” the audit said. “Errors in financial reporting could occur and not be detected.”
The audit recommends the city check financial documents regularly so that needed changes are made timely and correctly during the year. City leadership agreed with the finding and says it is working to fix the problem immediately.
“The City is in the process of reviewing policies and internal controls to help ensure accurate reporting of all capital asset additions,” the city’s response said.
The city paid Whiteville-based auditor Thompson, Price, Scott, Adams & Company $18,750 to perform the audit, according to a copy of the contract.
Last week, WECT reported the audit also found the City of Whiteville spent $7 million and only brought in $6.2 million in revenue, leaving the city’s main spending fund in the red by over $700,000. The audit showed the city spending roughly $1 million more on “construction in progress” and public safety efforts in fiscal year 2025 compared to 2024.
Mayor Terry Mann said he does not expect taxes to go up, or for city staff to lose their jobs, because of that. But spending cuts will be made across the board, he said. The primary reason for the shortfall was inflation, the mayor said.
“We can get through this,” Mann said last Friday. “The city finance director and city manager have identified the shortcomings, and they say they can be corrected, and city council is gonna do all they can do to keep from having a tax increase.”
State Auditor Dave Boliek said last week he is aware of the financial situation in Whiteville, but wouldn’t clarify if his office is looking into it.
The city is sending the draft audit to the Local Government Commission for approval. After that, the city will have 60 days to make any necessary corrections.
WECT Investigates is asking city leadership several questions about the audit findings, including how the error happened, if it impacted city spending and planning, what’s being done to prevent future mistakes and who’s responsible for the flaw.
WECT is still looking through the 2025 audit, and audits from previous years, for more clarity on how tax dollars are being spent.
Copyright 2025 WECT. All rights reserved.