MCCOLL — The town of McColl’s finances became a focal point during a Town Council meeting this week after it was revealed the town is delinquent with its required annual audits to the state.

The issue arose when residents initially inquiring as to when the town could expect to see the police department staffed again began asking whether or not the town could even afford to hire them.

On the town’s finances, Mayor Pro Tem Brian Blue said the municipality is currently behind on their required audits because they can’t find a company to do it.

“I was notified in late November, close to about December, that the auditor dropped us. And he said what happened was with all the publicity in the town, what happened in the town, that he could not carry us (any) more because it was too much on his firm. So during that time, we have been actually calling every day. And we get the same answer. Nobody’s calling back,” said Blue.

Although Blue stated the auditor had dropped them in November, the S.C. State Treasurers Office show the town is delinquent with audits back to 2021.

According to state law, the State Treasurer’s Office is required to withhold certain funding if local governments do not submit their completed audit within the time parameters prescribed in state law. While counties may request an extension, it is not clear whether Marlboro County has done so, or if municipalities can.

Blue said they’re working “as hard as they can” to find auditors to do the reports for them.

But this isn’t the first time the town has fallen behind with the required reportings. In 2018, a report issued by Brown CPA, LLC, Certified Public Accountants, under contract with the South Carolina Office of the State Auditor stated the town hadn’t been in compliance since 2015.

We were unable to agree financial activity as reported on the supplemental schedule of the Municipality’s audit report for the period January 1, 2018 through December 31, 2018 because this period has not been audited yet,” the report reads. “The Municipality’s last audit report was for the year ended December 31, 2015 and the auditor’s report was dated December 27, 2018. South Carolina Code of Laws Section 5-7-240 mandates municipalities and counties perform annual audits to ensure the proper collection, reporting and distribution of fine and assessments from the point of collection to the point of distribution.”

Even using the 2015 audit report for the inspection, there were errors in the reporting.

“During our inspection of the audit report was for the year ended December 31, 2015 with an auditor’s report dated December 27, 2018, the most recent audit report available, we noted the information on court fines fees and assessments was not properly presented in accordance with professional standards or South Carolina law, rules and regulations,” the inspectors wrote, noting “the schedule of court fines, fees, and assessments was included within a footnote to the financial statements and not presented in accordance with and South Carolina law” and “the independent auditor’s (2015) report on the financial statements did not properly cover the schedule of court fines, fees, and assessments.”

In response, then-Mayor Bobby Odom penned the following on May 22, 2019:

We have reviewed the comments provided herein and are in agreement with the comments and will remediate these items as follows.

We will review State of South Carolina guidelines for minimum and maximum amounts for police fines and assessments in an effort to conform with State Law. Additionally we will place greater effort in timely remitting to the South Carolina State Treasurer’s Office the monthly State Treasurer Revenue Remittance Forms which we understand are due by the 15’h day of the following month. We have had personnel turnover within our Town which has resulted in some of the problems identified.

With respect to the presentation and reporting on the schedule of fines, fees, and assessments within our annual financial statements we will provide our outside auditor with a copy of this report and request that they review the comments and to correct the presentation and reporting deficiencies identified. We are in the process of getting caught up on our past due annual financial statement audits and anticipate issuing the reports in the near term.

We are always receptive to positive constructive criticism in our effort to improve upon compliance and financial reporting.

Reach Kasie Strickland at 864-855-0355.