County Gets Progress Report on FY-24 Audit and Overview of Coming Impacts of New Marijuana and Hemp Laws

Early in its regularly scheduled October 20 Open Meeting, the Warren County Board of Supervisors received two presentations on past and future matters with financial impacts on the county.

The first was a presentation by Michael Lupton of RFCA (Robinson Farma Cox Associates) on the status of the long anticipated Audit review of the Fiscal Year-2024 County Budget. The second was a staff Update on the status of “Virginia’s New Marijuana and Hemp Laws,” as they are scheduled to go into effect amid the evolving legalization of those items statewide.

Both presentations were graphic-assisted, with the RFCA one beginning at the 1:13 mark of the County video and the Hemp Laws overview starting at the 26:40 mark. Involved County staff in the Hemp/Marijuana discussion included Finance Director Alisa Scott, Commissioner of the Revenue Sherry Sours, and Planning Director Kelly Wahl. The staff summary of that latter topic focused on retail sales, taxing implications, and revenue dispersal, among other issues.

Audit Issues

As to delays in finalizing the FY-2024 Audit Report, Lupton noted the unresolved status of finances related to the Town and County Economic Development Authority financial scandal. “And finally Other Matters to disclose here, the disclaimer of opinion on the EDA financial statements, since those financial statements have not been audited we cannot issue an opinion on those financial statements,” Lupton told the board.

RFCA representative Michael Lupton delivered a detailed, graphics-assisted presentation on the FY-24 audit processes and reasons for delays in completion. Royal Examiner Photos Roger Bianchini

On other variables related to material weaknesses in the existing FY-2024 budget review, Lupton said this: “As part of our audit, we issued three findings. And all three of these we believed to be material weaknesses. So, again, those types of control deficiencies are those where there’s a reasonable possibility that the financial statements are essentially inaccurate. And that the controls don’t allow for timely prevention or detection of those inaccuracies.”

Fielding comments and questions from the board, Lupton observed of the evolving process of the audit review that, “It seems like we’re getting there. Definitely over the last few months that we were finishing up the FY-24 audit, there was momentum in that way. But again, we’re so far removed as it relates to the audit that we’re talking about now to where we are in the present day that I would defer to the finance team to speak to the processes that have been put into place for improvements in that way, and to address and resolve these findings for FY-25 and FY-26.”

Chairman Cheryl Cullers may have been speaking for the board as a whole in seeking additional feedback from Lupton and his audit team: “I don’t want to put you on the spot, but I would like to know where we’re moving, and how that process and progress is going to play out. Because we’ve got FY-25 and 26 yet to do. And where we are with that. And what things, suggestions, or whatever have been made … and we’ve heard the weaknesses. But how we improve this process,” Cullers concluded.

Lupton responded that he has been working with County staff, specifying Finance Director Alisa Scott, in developing the path forward. See Scott’s comments on the process status beginning at the 16:18 County video mark, for Scott’s reply on the status moving forward.

RFCA’s Lupton and County Finance Director Alisa Scott at the podium, presenting to a full board, below, with a largely unoccupied public gallery, on October 20.

We will stand ready to report progress on these audits and any reorganizational efforts moving forward, with particular interest in EDA budget variables as they develop.

Other Business

The Tuesday, October 20th regular WC Board of Supervisors meeting opened with a Closed Session at 5 p.m., and the open meeting began at 6 p.m.

The motion into Closed Session read:

“I move that the Board enter into a closed meeting under Section 2.2-3711(A)(5) for the discussion concerning a prospective business or industry or expansion of an existing business or industry where no previous announcement has been made of the business’ or industry’s interest in locating or expanding its facilities in the community. The subject matter is the real property located at 1330 Progress Drive.

“I further move that the Board enter into a closed meeting under Section 2.2-3711(A)(6) for the discussion or consideration of the investment of public funds where competition or bargaining is involved, where, if made public initially, the financial interest of the governmental unit would be adversely affected. The subject matter is a possible investment in public facilities to facilitate economic development.”

Action Items

The Board had three Public Hearings scheduled, as well as a 15-item Consent Agenda to move forward. The Board adopted the Consent Agenda as presented, with no removals for further discussion.

Above, from left, the board trio of Stanmeyer, Carter, and Cullers listens to staff and a contractor representative detail complications surrounding the FY-24 audit process. The 6 p.m. convened regular meeting adjourned at 8:25 p.m.

And all three Public Hearings were approved. No citizens spoke at any of the three Public Hearings. Those Public Hearings were:

G.1. CUP2026-09-02 – 0 Locust Grove Rd – Maintenance Building in Residential-One (R-1) – A request for a conditional use permit for a maintenance building in a residential subdivision, owned and operated by the subdivision’s homeowners’ association or the County. The property is located at 0 Locust Grove Road and is identified on tax map 13C, Section 3, Block 3, as lot 490. The property is zoned Residential-One (R-1) and is located in the Shenandoah Magisterial District. – Staff report: Kelly Wahl, Planning Director.

Approved by a 5-0 vote on a motion by Hugh Henry, seconded by John Stanmeyer.

G.2. CUP2026-07-01 – Short Term Tourist Rental – 285 Dry Run Court – A request for a conditional use permit for a short-term tourist rental. The property is located at 285 Dry Run Court and is identified on tax map 15C, section 1, block 6, as lot 32. The property is zoned Residential-One (R-1) and is located in the Shenandoah Magisterial District. – Staff report: Kelly Wahl, Planning Director.

Approved by a 3-2 vote, with Supervisor Jamieson and Board Chair Cullers dissenting from the Carter, Henry, Stanmeyer majority.

G.3. Public Hearing – Lease Agreement of Hangar A3 to Frederik Willem van Weezendonk – Staff Report: Mike Berry, Public Works Director.

Approved by a 5-0 vote

Watch the Warren County Board of Supervisors Meeting of October 20, 2026