County finance officer forced out: Were late audits the only reason?

February 27, 2009 by Jeff Aydelette

Finance Officer Jim Philyaw, suspended from his job since February 17, is no longer employed by Pamlico County government, effective immediately.

A terse, two-sentence statement released Friday morning by Pamlico County Manager Tim Buck gave no explanation for Philyaw’s departure, nor was Buck willing to say whether the seven-year employee had been fired or chose to resign.

Insiders report the board of county commissioners gave Philyaw, 64, no opportunity to plead his case or to correct any perceived shortcomings in the operation of his department.

The seven elected officials met for an hour Thursday afternoon in a session closed to reporters and to the public. The board heard from Personnel Officer Stephanie Hucks on the best way to handle the dismissal, in order to comply with a statute known as the State Personnel Act, which governs employer-employee relations for high-ranking local government officials.

Buck emerged from the meeting with a clear consensus, espoused by his bosses on the board, that Philyaw had to go.

A phone call Friday afternoon from this newspaper to the Philyaw residence in Bayboro was not returned. Visitors to the county’s administrative building found the door open to the finance office, revealing Philyaw’s familiar desk apparently untouched since last week.

Perennially late state-mandated audits of the county’s books and records are the most-cited reason for the Finance Officer’s fall from grace. Other rumored aggravations include Philyaw’s less-than-warm relationships with a number of county government department heads, prompted in large part by his tight rein over fiscal matters.

On more than one occasion, county commissioners applauded Philyaw for his arm-twisting and insistence on cost-cutting. In early 2008, during board meetings held to ferret out waste in the county’s $17 million budget for the coming fiscal year, he was encouraged to pursue his bulldog tactics.

However, things changed in July when utility giant Progress Energy threatened to cutoff the county’s electricity on a number of allegedly overdue accounts. The revelation proved embarrassing for elected officials. Later came the finance department’s delays in submitting bookkeeping and journal entries necessary for the county’s independent auditor to complete certified financial statements.

In November, unanticipated turnover on the board of commissioners contributed to behind-the-scenes maneuvering. A 16-year incumbent, Doug Brinson, was defeated for re-election, which left the chairmanship of the board up for grabs.

County Commissioner Paul Delamar III, the board’s youngest member, immediately sought the vacant leadership post, winning the unanimous endorsement of his colleagues.

A short time later, Philyaw failed to detect handwriting on the wall as Delamar began the New Year with a zero-tolerance mentality for late audits.

In early February, things came to a head. The Wilmington-based certified public accounting firm submitted its audit of county finances more than three months beyond the Oct. 31 due date. A principal with the firm placed the blame squarely upon Philyaw and his staff.

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