The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Saturday, April 20, 1996               TAG: 9604200344
SECTION: LOCAL                    PAGE: B1   EDITION: NORTH CAROLINA 
SOURCE: By MASON PETERS, STAFF WRITER 
DATELINE: HERTFORD                           LENGTH: Long  :  104 lines

ALBEMARLE COMMISSION NEARLY BROKE ACCOUNTANT SAYS AGENCY HAS $100,000 IN BILLS

Dirty laundry by the hamperful fell out of the Albemarle Commission this week when the chief financial officer said the best way to clean up the agency's money troubles would be to ``get rid of Hal Walker.''

Walker is the $55,851.41-a-year executive director of the Albemarle Commission.

``If we didn't have Hal Walker's salary to meet, it would solve some of our problems,'' said Charlena ``Charly'' Spence, the Albemarle Commission's in-house accountant who gets $41,741.35 a year under the agency's 1996-97 budget.

Walker told friends Friday that he thought Spence ``was trying to get my job.''

Walker and Spence are among the three highest paid staffers on the commission.

Spence publicly criticized Walker following a Thursday night meeting in Sunbury of about 50 of the governing delegates who run the Albemarle Commission.

When chairman Leonard Ballou opened the proceedings with a call for a financial report, Spence painted a gloomy picture of precarious money-juggling to pay salaries and keep bill collectors from the commission's elegant front door in Hertford.

``Right now we have $15,000 in the bank and $100,000 in accounts payable,'' said Spence.

``This is not going to go away. I know of no additional revenue coming in at the present time and I do not have money for the payroll this week,'' Spence added.

The Albemarle Commission operates on a $3.5 million annual budget.

In comments after the Thursday meeting, Spence said she had informed Ballou and others on the commission about the chronic insolvency of the agency.

Walker said Friday that he had heard nothing about any such reports being made by Spence.

Walker also said that Spence knew earlier this month that $37,000 was coming in from a state client of the commission and that would meet this week's payroll.

``She sat down with me and we went over every detail of the budget presented to the delegates Thursday night,'' said Walker, ``She knew we had $37,000 coming in.''

Earlier in the week Walker had pointedly praised Spence for her efforts to straighten out the finances of the commission.

Walker said that after the strained and awkward meeting Thursday night he told his bosses that he would resign if requested to.

``The responses I got were all upbeat and friendly,'' Walker said. ``Nobody asked me to quit and I'm not going to.''

The Albemarle Commission has a history of bookkeeping problems and tangled finances that made life difficult for previous directors.

At the tense Sunbury meeting in Jimmy's Barbecue, Ballou, who is director of institutional research at Elizabeth City State University, managed to push through several items on the agenda that will save a little money and solve some problems:

Beginning July 1 when a new fiscal year begins, the Northeast North Carolina Economic Development Commission will assume responsibility for the Dismal Swamp Canal Visitor Center on U.S. 17 near the Virginia state line. The change had been sought by Penny Leary-Smith, director of the welcome center, who said Walker wanted to withhold some of the $75,000 annual state funding for the center to help balance the Albemarle Commission budget.

Walker will assume responsibility for administering Emergency Medical Services that are supported by the Albemarle Commission. This would remove one salaried position from the commission's present EMS budget and temporarily reduce by 50 percent the present $65,495 that the commission gives to EMS.

The 24 cities and counties that support the Albemarle Commission would voluntarily pay their dues early this year to build up the agency's depleted general fund.

Walker emphasized that this is a ``most important'' first step to solvency.

Walker has already laid off some Albemarle Commission workers as a money-saving measure. He would not speculate on Spence's future with the agency.

``I was a little surprised when she took today off,'' Walker said Friday.

When it became clear earlier this month that the Albemarle Commission was rapidly going broke, Walker said years of bad budget management was largely to blame.

``I'm the captain of the ship, so I have to accept the responsibility,'' he said, ``But I hope the delegates understand what really happened.''

He said general fund withdrawals against expected future income had too frequently unbalanced the books when payments to the commission failed to come in on time.

The Albemarle Commission plays a coordinating role in programs that benefit the aged, provide small business help, train workers and other forms of economic pump-priming in aid of the disadvantaged.

``I'm not going to cut those benefits that go to the aged,'' Walker said.

Unlike the Northeast Economic Development Commission, which serves approximately the same geographic area, the Albemarle Commission is expected to pay its own way out of fees from state, federal and local funding.

Meanwhile, Ballou told the commission delegates in Sunbury that he thought the new damage control moves that are planned or are in place would restore the solvency of the Albemarle Commission.

``Morale is not going to return overnight,'' Ballou said, ``but please remember that this year we are observing our 25th anniversary.

``The Albemarle Commission has done a lot of good.'' by CNB