A recently released audit of Chattooga County’s 2024 financial records identified deficiencies involving accounting procedures, procurement practices, internal controls, budgeting, and documentation. Major findings included more than $333,000 in ARPA-funded broadband project expenses that lacked sufficient supporting documentation, payments on road projects that exceeded approved bid amounts, missing procurement records, untimely bank reconciliations, and several departments exceeding approved budgets. Auditors also cited inadequate segregation of duties and training deficiencies. Chattooga County Sole Commissioner Andy Allen said “We walked into this mess” when he took office and agreed with the audit findings and said corrective steps have already been implemented, including added accounting staff, stronger oversight, improved documentation requirements, better procurement procedures, regular budget reviews, and additional employee training. (See full story below).

A recently released audit of Chattooga County’s 2024 financial records identified multiple deficiencies in accounting procedures, procurement practices, project oversight, and financial controls, many of which auditors said originated under the county’s previous administration.

The findings were released by Chattooga County Sole Commissioner Andy Allen, who has repeatedly stated that his administration inherited significant financial and record-keeping challenges when taking office in January 2025.

“We walked into this mess,” Allen told The Summerville News in comments published this week.

According to the audit, county officials discovered numerous issues involving accounting records, grant-funded projects, procurement procedures, and budget management. Auditors cited inadequate oversight, missing documentation, insufficient internal controls, and a lack of compliance with certain purchasing requirements.

One of the most significant findings involved a broadband internet project funded through the American Rescue Plan Act (ARPA). Auditors reported that supporting documentation was not maintained or made available for invoices related to engineering, legal, payroll, materials, and marketing expenses associated with the project.

The audit states that total payments of $333,265 lacked sufficient documentation demonstrating services performed, project completion status, or deliverables received. Auditors also reported that no operational documentation was available to demonstrate broadband subscribers or customers utilizing the service.

Additionally, auditors found that sales tax totaling $29,607 was paid to a vendor despite governmental entities being exempt from sales tax. The audit also noted missing engineering drawings and a lack of documentation required under bid specifications.

According to the audit report, the matter was referred to the county attorney by the current administration. A civil lawsuit was filed against the vendor, resulting in a judgment in favor of Chattooga County. However, auditors noted that no funds had been recovered as of the date of the report.

The audit also identified issues involving road projects funded through Local Maintenance and Improvement Grant (LMIG) and Local Road Assistance (LRA) programs. Auditors found insufficient accounting records to support certain expenditures and noted payments that exceeded 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 reported that the county received bids totaling $4,390 and $15,000 but selected the higher-priced vendor. The audit stated that documentation supporting the decision could not be located. Auditors further noted that the awarded vendor was identified as a related party.

The report also described a situation involving three separate invoices submitted for payment that were individually below the county’s $10,000 sealed bid threshold. Auditors stated the invoices were initially processed as a single payment before being separated into individual checks. The audit noted that no contracts, sealed bids, or supporting procurement documentation could be located.

Beyond procurement concerns, auditors cited broader accounting and financial management deficiencies. The report stated that several general ledger accounts were not reconciled properly, bank reconciliations were not completed on a timely basis, and some financial transactions were not recorded correctly.

Auditors also found inadequate segregation of duties within county financial operations, a condition that can increase the risk of errors, fraud, or misappropriation of funds. Staffing shortages and limited training for accounting personnel were cited as contributing factors.

The audit further noted that several county departments exceeded their approved budget appropriations during 2024 and that no amended budgets had been adopted to address changing financial conditions.

Commissioner Allen agreed with the audit findings and outlined corrective steps his administration has taken since taking office. Those steps include hiring additional accounting personnel, implementing new oversight procedures, strengthening documentation requirements, improving procurement practices, conducting regular budget reviews, and providing additional employee training.

Allen has maintained that many of the deficiencies identified in the audit stem from practices and decisions made before his administration took office. Since taking office, the commissioner has emphasized efforts to improve financial accountability, record retention, and internal controls throughout county government.

The audit findings provide one of the most detailed looks yet at the financial and administrative challenges facing Chattooga County government and the steps being taken to address those issues moving forward.