A recently released audit of Chattooga County’s 2024 financial records identified numerous deficiencies involving accounting procedures, procurement practices, project oversight, budgeting, and internal financial controls, prompting county officials to implement corrective measures.
The audit, which examined financial activity from 2024, highlighted concerns related to documentation, grant management, purchasing procedures, and recordkeeping. Current Chattooga County Sole Commissioner Andy Allen said many of the issues originated before he took office in January 2025.
“We walked into this mess,” Allen told The Summerville News, adding that his administration agrees with the audit findings and has already taken steps to address the problems.
Among the most significant findings was a broadband expansion project funded through the American Rescue Plan Act (ARPA). Auditors reported that supporting documentation was unavailable for $333,265 in project-related expenses, including engineering, legal, payroll, materials, and marketing costs.
According to the audit, county officials were unable to provide documentation showing services performed, project completion status, or deliverables received. Auditors also noted there was no operational documentation available to demonstrate broadband subscribers or customers using the service.
The audit further found that $29,607 in sales tax was paid to a vendor despite governmental entities being exempt from sales taxes. Missing engineering drawings and required bid documentation were also cited.
County officials referred the matter to the county attorney, resulting in a civil lawsuit against the vendor. The county obtained a judgment in its favor, though auditors reported that no funds had been recovered as of the audit’s publication.
Road improvement projects funded through Local Maintenance and Improvement Grant (LMIG) and Local Road Assistance (LRA) programs also drew scrutiny. Auditors reported insufficient accounting records to support certain expenditures and identified payments exceeding approved bid amounts by approximately $105,312 on LMIG projects and $76,718 on LRA projects.
Another finding involved the purchase of a 2020 Polaris Ranger using ARPA funds. Auditors found the county received bids of $4,390 and $15,000 but selected the higher-priced vendor. Documentation explaining the decision could not be located, and auditors noted the awarded vendor was identified as a related party.
The report also described concerns involving procurement practices. Auditors found three invoices that were individually below the county’s $10,000 sealed bid threshold had initially been processed together before being separated into individual payments. No contracts, sealed bids, or procurement records related to the purchases could be located.
In addition to procurement issues, auditors identified broader weaknesses in financial management. Findings included untimely bank reconciliations, unreconciled general ledger accounts, inaccurate transaction recording, and inadequate segregation of duties within county financial operations.
The audit stated that staffing shortages and limited employee training contributed to some of the deficiencies.
Auditors also reported that several county departments exceeded their approved budgets during 2024 and noted that no amended budgets had been adopted to address changing financial conditions.
Allen said his administration has already begun implementing corrective measures, including hiring additional accounting personnel, strengthening oversight procedures, improving documentation requirements, enhancing procurement practices, conducting regular budget reviews, and providing additional employee training.
The commissioner has repeatedly stated that improving financial accountability, record retention, and internal controls has been a priority since taking office.
The audit provides a detailed assessment of the financial and administrative challenges facing Chattooga County government while outlining areas where county leaders are working to improve compliance and oversight moving forward.