The town of Zebulon said it is learning more reasons why it is on a list of municipalities that will face increased scrutiny from the state going forward.
In July, a state audit revealed the town lacked internal controls to effectively manage its finances and overspent from its general fund.
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The Local Government Commission, or LGC, announced last Friday that Zebulon would be added to the Unit Assistance List, or UAL. Being on the list means the state will watch the town's spending and budgets more closely.
The town said in an update Wednesday night that Local Government Commission staff spoke with the town manager about being added to the UAL.
State staff said their review showed the town's fund balance went down between 2023 and 2025. They also said the state's audit of the town's financials affected the decision to add Zebulon to the UAL.
The town's LGC coach will be reaching out again within the next week about what this process will look like.
"Public statements, updates and other information about the Town’s UAL designation will be posted on the Town’s Progress Dashboard," the Town of Zebulon said in a post online.
The NC Treasury sent WRAL News a statement about why the town is on the UAL list.
A recent investigative report by the Office of the State Auditor identified significant weaknesses in the Town of Zebulon’s oversight of disbursements, including unsupported, duplicate, and invalid payments and inadequate segregation of duties. The Town also had recurring budget-to-actual variances and failed to maintain the General Fund balance required by its own financial policy.” Statement from the NC Treasury
Cary and Rocky Mount are also on the UAL list.