<body><div><img src="https://img.particlenews.com/image.php?type=thumbnail_580x000&amp;url=1gbhPg_18lqZAMJ00" alt="https://img.particlenews.com/image.php?url=1gbhPg_18lqZAMJ00" width="1200" height="600" >LAKE CITY, SC (WMBF) - The public can now access a long-awaited final forensic audit report that highlights financial irregularities in Lake City.This report details the city’s financial and administrative records from July 1, 2021, to June 30, 2024.An independent forensic audit was ordered to evaluate years of financial activity and determine the root of the city’s money issues.The final version of the audit shows that significant financial irregularities, fraud and waste happened because of weak internal controls and inconsistent policy enforcement.Financial overspending and lossesThe report shows that Lake City overspent by $6.1 million across fiscal years 2022-2024, and took in $2.7 million less than it spent.The city lost $1.5 million after falling victim to a phishing scheme in August of 2022. The city made three payments to the “illegitimate vendor.”Of the losses, $700,000 has since been recovered.City events cost $326,954, and the audit found wasteful spending on unused vehicles, such as a $38,280 Tahoe.Internal control weaknessesThe report uncovered missing purchase orders, a lack of competitive bidding and split transactions to avoid bidding thresholds. Competitive bidding involves obtaining quotes from multiple companies to secure the best price. There was also missing or incomplete documentation for purchases, payroll adjustments and timesheets, along with questionable and unreasonable credit card charges, including personal and prohibited purchases.The report said that 19 credit cards were used over three years amid suspicious activity.Specifically, the report identified $29,109.43 in questionable charges and $17,090.25 in unreasonable charges.In addition to timesheet issues, there were incomplete or missing Personnel Action Forms for new hires, terminations and payroll adjustments.Grant compliance issuesThe report details the misuse of ARPA funds, overstated deferred revenue accounts and $139,500 in EPA wastewater treatment plant funds lost to fraud. ARPA funds are special COVID-19 relief funds, for which the city received more than $3 million for employee premium pay.Of that money, $332,746 went to the pay. However, more than $1 million was spent on items like affordable housing projects, five Tahoe trucks for police, and a John Deere mower, which might not be eligible purchases. The report said that, due to poor record-keeping, auditors cannot verify whether spending was on eligible items, even though the city claims all ARPA funds have been spent. The auditors suggest the city check with the state to see if these purchases are okay. For the EPA wastewater treatment plant funds, the city received money to construct a new laboratory at Lake Swamp Wastewater Treatment Facility.While the report said most of the money was used for construction costs, $139,500 was paid to a “fraudulent payee,” referring to the phishing scheme the city fell for. </div></body>

Lake City Audit Reveals Significant Financial Irregularities

The long-awaited final forensic audit report for Lake City, South Carolina, has been released, revealing extensive financial irregularities and mismanagement. The audit, covering the period from July 1, 2021, to June 30, 2024, highlights significant overspending and losses totaling $6.1 million, with the city taking in $2.7 million less than it spent. Among the issues are a $1.5 million loss due to a phishing scam and wasteful spending on city events and unused vehicles. Weak internal controls and a lack of competitive bidding practices contributed to these problems. Additionally, there were misuse of ARPA funds and fraud involving EPA wastewater treatment plant funds. The report calls for improved financial oversight and policy enforcement.

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LAKE CITY, SC (WMBF) - The public can now access a long-awaited final forensic audit report that highlights financial irregularities in Lake City. This report details the city’s financial and administrative records from July 1, 2021, to June 30, 2024. An independent forensic audit was ordered to evaluate years...

Lake City’s long-awaited final forensic audit highlights questionable spending, practices

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LAKE CITY, SC (WMBF) - The public can now access a long-awaited final forensic audit report that highlights financial irregularities in Lake City. This rep

Lake City’s long-awaited final forensic audit highlights questionable spending, practices

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