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Council accepts Williamsburg County Transit audit for FY2022–23; auditors cite control and reporting issues
Summary
Love Bailey and Associates presented a qualified audit opinion for Williamsburg County Transit for FY2022 and FY2023, citing missing inventory observation and OPEB balance issues and two internal control findings; council accepted the audit by voice vote.
Love Bailey and Associates presented the Williamsburg County Transit System financial audit for fiscal years 2022 and 2023; council accepted the audit after the presentation and a motion by a council member.
Will Walls, audit manager, said the firm issued a qualified opinion for both years because the auditors were unable to perform a required inventory observation for the June 30 year ends and because of an OPEB balance issue in 2023. Walls identified two internal control findings: (1) the general ledger was not reviewed and balanced monthly, which resulted in some transactions posted to incorrect accounts, and (2) grant reimbursements from the South Carolina Department of Transportation were not submitted and received in a timely fashion.
Walls summarized the transit system’s financial statement highlights: operating revenues rose from about $314,000 in 2022 to $454,000 in 2023 (driven largely by increased Medicaid revenues), while operating expenses rose from roughly $1.5 million to $1.9 million. Depreciation and no capital additions reduced total assets from about $1.9 million in 2022 to $1.3 million in 2023; net position moved from a roughly $430,000 deficit to about an $890,000 deficit.
Chris Clark of Paragon Advisory Solutions and other council members noted that COVID‑era disruptions contributed to billing and reimbursement backlogs; Clark said recent management and consultant efforts have positioned the transit department to improve controls and processes. The council then moved and seconded acceptance of the audit; the motion passed by voice vote.
Next steps: Council and management noted follow‑up items, including timely submission of SCDOT grant reimbursements and monthly ledger review and reconciliation. The audit report and management responses will be part of the record and subject to follow‑up by staff and consultants.
Ending note: The transit audit was accepted before the council resumed other agenda items, including ordinances and the budget vote.
