McBee council approves interim administrator after auditor flags repeated bookkeeping errors

Mayor John Campolong convened the Town of McBee’s special council meeting Sept. 28 to hear a preliminary financial review from Rebecca Lee, CPA, who reported recurring accounting errors, unposted audit adjustments and weaknesses in internal controls and grant reporting.

Lee told the council “there were numerous errors in the general ledger and in [the] utility fund that carry into the current year,” and said audit adjustments from June 30, 2016 had not been coordinated for 2017–2021. She recommended coordinating adjustments with the auditors after October 15, updating policy and procedure manuals (some dating from 2010–2016), installing oversight or a part-time administrator, segregating duties so the same employee cannot both post and approve adjustments, and requiring monthly financial reporting to the council.

The recommendations touched on personnel policy and oversight, which prompted a legal and procedural debate. Mayor Campolong moved to enter executive session under “SC Code FOIA 30-4-470 (a)(b)(1)(2) to listen to [Lee’s] recommendations.” Council Member Glenn Odom objected, citing the state law and arguing the town had hired Lee to prepare a public study paid for by residents; he said he did not see grounds for executive session if the discussion would not concern employment, contracts or allegations of crime. Attorney Martin Driggers responded that whether the council may lawfully go into executive session depends on whether employment or personnel matters will be discussed. Lee said she planned to address “personnel policies, procedures, allocations.”

After the debate and a brief public comment in which local resident James Linton thanked the council for the review, the council entered a closed session. When it reconvened the council voted to verify that only personnel and budget matters were discussed during the executive session and then approved a motion to hire Rebecca Lee as interim town administrator for a three-month term to correct office practices. The motion names Terri, Latondra and Clerk Tisha Jones to report to Lee during that period; Lee was directed to report monthly to the council. Recorded motions at the meeting state those final votes were carried with “all in favor.”

Lee told council she was not performing a fraud investigation and said she could not determine whether misuse or fraud had occurred without fully reconciled books. She warned that improper use or reporting of incoming federal/state grants — including COVID-era funding — can require repayment if grant conditions are not met and urged caution and improved compliance processes.

Council members described the findings as serious and supported changing oversight and procedures. Council Member A.C. McLeod Jr. said the town needs stronger policies and collective council oversight. Council Member Glenn Odom pressed for a formal policy on commingling of funds and asked that future audit reports be presented to council so members can ask auditors questions directly.

The council’s immediate actions were limited to appointing Lee as interim administrator for three months and instructing her to implement or recommend corrections to bookkeeping, internal controls, personnel allocations and grant-reporting processes. The meeting ended with a motion to adjourn.

The council referenced the South Carolina Freedom of Information Act (cited in the meeting as “SC Code FOIA 30-4-470 (a)(b)(1)(2)”) during the executive-session debate. The council discussed auditors’ adjustments, years 2016–2021 as the range Lee cited, and an anticipated auditors’ review of adjustments after Oct. 15. No formal audit report was presented at the meeting; Lee said a written report was not yet available.