Hampton Co. announces closure of second state audit

HAMPTON COUNTY, S.C. (WTOC) — Hampton County says a state audit of its Capital Project Sales Tax (CPST) spending is now closed.

“It is time for this County to look forward,” County Council Chairman Dr. Roy Hollingsworth wrote in a press release to WTOC. “The next step in rebuilding trust and transparency in our community is to find out what people want for the future of Hampton County and determine a plan to use CPST funding, beginning in the next fiscal year, in a way that fits our community’s needs.”

The South Carolina Department of Revenue issued initial audit findings to the county in July 2024. The audit reviewed county CPST spending from 2016 through 2024.

The county appealed those findings, and the state and county have now reached an agreement to close the audit. The Department of Revenue says the county documented an additional $1.5 million in eligible CPST expenses and found no evidence of fraud or intentional wrongdoing by county officials.

As part of the audit closure, Hampton County says it must spend $2 million over the next five years on county council-approved capital improvement projects.

“The audit confirms what we already knew: there were gaps that needed to be addressed,” Hampton County Administrator Lavar Youmans wrote in a press release to WTOC. “Hampton County took responsibility and has made measurable steps to implement meaningful improvements in how we manage and track capital projects, including incorporating new project management and expense tracking systems that we didn’t have before.”

County leaders say reforms already underway include:

• Quarterly public updates on planned CPST spending and project progress
• A countywide wage and salary study and a new performance evaluation system
• Improved financial standing: officials say the General Fund moved from a $3.5 million deficit to a positive balance of more than $1.6 million
• Rollout of the Springbrook financial software system
• Strategic planning and zero-based budgeting
• Stronger internal controls and standardized financial policies
• Public outreach meetings with the treasurer, auditor, and county administrator