NTP Syncornization Issue

Hi,
Here is our NTP configuration:
/etc/ntp.conf

restrict 127.0.0.1
driftfile /var/lib/ntp/drift
server x.x.x.x burst iburst
restrict x.x.x.x mask 255.255.255.255 nomodify notrap

/etc/sysconfig/ntpd

OPTIONS="-u ntp:ntp -p /var/run/ntpd.pid -g"

I guess, there is an issue for synchronization because "refid" filed is always "LOCAL(1)":

remote refid st t when poll reach delay offset jitter

*10.110.1.254 LOCAL(1) 8 u 92 128 377 0.786 7.026 2.193

Please advise.