During their meeting Tuesday, Pelzer Town Council decided to begin the process of a “forensic audit” of the Town’s finances.
Town officials said they did not suspect any criminal activity such as fraud or embezzlement but wanted to have a detailed look at the town’s financials, which a number of residents and several council members have called for over the years.
Councilmember Donna Ide made the motion which was seconded by Councilman Mike Matthews. Ide said she has been collecting information but offered no reason why she wanted an audit. During discussion, Councilman Eddie Waits had questions about what the audit would accomplish and how far back it would go.
“We have needed one for several years,” he said. He questioned why Mayor Ragland was supportive of a forensic audit now and not in the past. Waits pointed out that the town has had a change of leadership with three mayors in recent years. He said he supported an audit. “I think it will be a clean slate and show people where the town is. There has been mistrust in the past”, he said. Waits said with the support of the entire council there would be no “old skeletons” about the financial handlings of the town. He did question the Mayor about what has changed regarding the mayor’s support for an audit.
A forensic audit is a detailed examination of financial records and transactions and can be used to investigate potential fraud, misconduct, or other irregularities.
Mayor Will Ragland said he did not expect to see any fraud or embezzlement from an audit and that his main reason for not supporting one in the past was the cost.
Responding to Waits question, Ragland said “It seems like a great time.” He said he has also been going through accounts, files and invoices. “I am not requesting an audit because I feel any criminal activity, which I don’t, but to find any flaws and the need to correct them.”
The move follows the recent resignation of Town Clerk Cheryl Bates, which has left the town without a town clerk, the person who is most familiar with the day to day operations and financial responsibilities. Laura Rainey has been filling in the position on a part time basis during the interim.
Mayor Will Ragland said the Town will be posting an opening for the position soon.
“We are working on a job description, deciding if it will be a full time or part time position, sorting through information and working with the accountant to come up with the duties of the town clerk,” he said.
In other busines, Council approved second reading on a new fee schedule for the Planning Commission and then went into executive session for an update on the Pelzer Pool property condemnation.
Following the executive session, Mayor Ragland said the issue is still in litigation and the final price of the property is being contested by the property owners. He said he expectes the issue to be settled by August.
