Shaun Adams
Robbinsville – The Local Government Commission has refuted statements made by Town of Robbinsville Mayor Shaun Adams during a May 6 meeting.
"I got an email from the LGC yesterday that they're going to freeze some of our taxes that's redistributed; some of our sales tax," Adams told the board. "It's going to cost about $85,000 that they're going to hold on us.
"Potentially, we could have to face $100,000 in those fines you were discussing," continued Adams, as he nodded in the direction of finance officer Machelle Crisp.
Later in the meeting, Adams changed the former amount from $85,000 to $83,000.
Prior to his statement, Crisp had just filled the board in on recent penalties and interest that had just been brought up to date (at the end of April) for not paying toward the North Carolina Retirement System. Crisp also said that the penalties and interest for 2026 had amounted to $3,536, but that missing payments from 2024 and 2025 could add up to between $10,000-$12,000.
Adams said that the oversights were caused by the town's former finance officer, which was Linda Parton. Parton resigned earlier this year.
The Graham Star received an email from the Local Government Commission shortly after the meeting recap was published in its May 21 edition ("Town out $200K"), which said that the information given to the board by Adams was inaccurate.
"Robbinsville is not currently subject to any sales tax withholding, and a determination hasn’t been made for any withholding to occur this year (nor an amount of any withholding)," the LGC's email reads. "Robbinsville did receive a 2026 Notice of Noncompliance for the FY (Fiscal Year) 2025 audit not being filed. Robbinsville was missing the FY 2024 and FY 2025 audit reports; however, Robbinsville has improved its position to now missing only the FY 2025 audit."
Adams mentioned during May 6's meeting that Lexington-based RH CPAs – who have been contracted by the town to perform the audits – were set to submit the 2023-24 audit at the "end of the week."
When asked for comment by The Star, Adams clarified that Robbinsville "is in jeopardy of having a portion of our sales-tax distributions withheld" if the 2024-25 audit is not submitted by June 30, citing an email notice from the Local Government Commission and N.C. General Statute 159-34(g).
"A county or municipality that fails to file a copy of its annual audit report with the secretary within 12 months of its fiscal year end may have a portion of its sales tax distributions withheld," reads the statute. "The total cumulative amount that may be withheld is an amount equal to one hundred fifty percent (150%) of the cost of the required annual audit as indicated in the audit contract between the county or municipality and its external auditor for the audit, if such a contract has been executed, or one hundred fifty percent (150%) of the actual fee for the most recently filed audit report if a contract has not been executed for the current year audit."
Adams said RH CPAs is paid $43,000 for its work on the audit, which runs up a $64,500 cost is held to the 150% stated in the statute.
Regarding the payroll taxes that Crisp had caught up, Adams noted that the town has contracted with CPA and former Graham County Manager Becky Garland to help bring all accounting information for the town up to speed. Garland and Crisp have been working together on the effort, Adams said.
"Some of the payroll taxes were not paid last year and based on what Becky Garland had told me, fines could reach up to $100,000," Adams stated.