Town fails to file audits with state

The Town of Windsor has been included in a list of South Carolina towns that are delinquent in providing their annual 2008 financial audits to the state.

The list was released this week by the state treasurer's office. The audits were due on July 31.

In the release, State Treasurer Converse Chellis said all state funding to the areas will be withheld until the financial inspections are received by the state.

While Windsor Mayor Frank Mizell said the town is working to comply with the state, he said the town cannot afford to conduct an audit. Instead, Mizell said the town hires an accountant to do a compilation of its finances. The process also involves analyzing financial records, such as bank receipts and canceled checks, but is less extensive than an audit.

Having an audit conducted would cost Windsor about $5,000, Mizell said.

"If we spent $5,000 a year for an audit, we'd go bankrupt," he said.

According to Mizell, Windsor has a population of only about 100 people. He said the town has no debt and few expenses, after keeping the town clean and the grass cut at the town hall, paying for streetlights and other supply costs.

"We just don't have the resources to do an audit. Can they not do something for small municipalities?" he asked.

According to Deputy State Treasurer Scott Malyerck, the treasurer's office pushed for a law requiring South Carolina cities and towns to submit financial records to the state to make them accountable to taxpayers for the money that was spent.

In some cases in the past, the records were not being submitted because of criminal activity, he said.

Before the law was passed, about 125 to 130 cities and towns in the state did not submit financial records to the state each year. The threat of withholding state funds has reduced that number significantly, Malyerck said.

In addition to Windsor, the list includes: Andrews, Atlantic Beach, Clio, Furman, Gaston, Hodges, Iva, Lincolnville, Lowndesville, Lowrys, Luray, Meggett, Olar, Patrick, Peak, Quinby, Reevesville, Sellers, Snelling, Smyrna, St. Stephens, Summit, Vance and Waterloo.

Atlantic Beach, Cross Hill, Gaston, Lincolnville, Sellers, St. Stephens and Ulmer were also listed as delinquent with their 2007 records.

Because of the size of Windsor, the amount of state funds being held is about $792. Malyerck said the state is willing to work with smaller towns or cities that might not be able to afford audit services so that they are still able to fall in line with the law and receive state funds.

"We don't want to hold the money," he said.

Once the financial information is received, the funding will be restored.

Mizell said the town is working to rectify the situation.

"Somehow we're going to comply with the law," he said. "We'll do whatever we have to."

Contact April Bailey at abailey@aikenstandard.com.