LORIS, SC (WMBF) – The city of Loris is still working through completing audits for 2015-2016 and city administrator Damon Kempski said the loss of financial documents about three years ago has complicated that process over time.
“The shredding of the documents has complicated the audit process. Some of the information that was shredded was supposed to be scanned and digitized before it was shredded and we found out after the fact that that wasn’t necessarily the case, so there was a gap in the amount of information we were able to provide to the auditors,” said Kempski.
Kempski said he believes the information was supposed to be scanned and shredded, but they haven’t found any digital copies.
He said a former employee is believed to have shredded the documentation, and he doesn’t want to speculate when it comes to why this happened but wants the public to know the issue is being looked into.
“The person that is being looked at as being responsible for the action is no longer employed here,” said Kempski.
According to Kempski, there’s a grace period the state gives municipalities to get audits done. Since that grace period has ended for the 2015-2016 audit year, Kempski said the state is withholding money the city usually gets to put into their general fund until the audits are complete.
"This is something that just took effect. There was that polite grace period that they have said ‘OK, now we've kind of gotten to the end of that now we're doing this to kind of stimulate your actions.. for you to do this,’ And its procedure. It’s procedural. It’s one of those things that this is how they handle it for anybody regardless of the circumstances, they're aware of our situation and we're getting it taken care of,” said Kempski.
The audit for 2015-2016 is for an 18 month time period. Kempski said once that audit is complete, they don’t anticipate having any problems getting the audits after that done.