More than $3.3 million missing from Lexington County small town’s budget
More than $3.3 million in assets is missing from the town of Swansea’s coffers, according to a recent budget audit.
The news comes as former Swansea Mayor Jerald Sanders awaits trial for charges of embezzlement and misconduct in office after being indicted last year on accusations he had checks written to him from public funds without authorization that were then deposited into an account only he had access to. Sanders pleaded not guilty to those charges.
The audit, completed at the end of February, does not specify what assets are included in the missing $3.3 million, nor does it say where the assets may have gone. Sanders is not named in the audit.
In addition to identifying just more than $3.3 million in missing assets, the audit lays out a number of accounting problems with the town’s budget. They include no balances in accounts payable or receivable. The audit states “most governmental entities” have such balances that are reported at the end of each year.
The audit also found accounts added to the town’s general ledger that “appear to be invalid” and “appear to be improperly accounted for.”
The audit identifies several other areas where income was improperly documented if it was documented at all.
The Lexington County town is located about 20 miles south of Columbia and has fewer than 1,000 residents.
Town Council member Doris Simmons said no one on council has been told what the $3.3 million might include.
“More than likely it’s money,” she said, but added it could also include vehicles or equipment.
It’s unclear how the audit will impact the town’s efforts to pass a budget for the 2022-23 fiscal year, which began July 1. That budget is for $1.7 million and assumes revenue and expenses are balanced.
Simmons said despite the audit, she believes town council will pass the budget because it includes water rate increases as well as a millage increase. A public hearing has already been held. The council will read the budget a second time during an Aug. 22 meeting, Simmons said.
Simmons said it is also unclear whether the missing assets have impacted town operations. Council members have been kept away from budget documents in prior years, she alleged. She suggested some of the $3.3 million may have been moved prior to the 2021-22 fiscal year.
John Brown, a CPA who audited the town’s budget, did not immediately respond to a request for more information Thursday. He previously told the Post and Courier the audit only looked at the 2021 budget. The news of the missing $3.3 million in assets was first reported by the Post and Courier.
The town’s current mayor, Viola McDaniel, also did not respond to a request for information Thursday.
This story may be updated with additional information.
