Administrator: Richland County addressing audit issues

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Richland County officials are taking action to address issues outlined in a S.C. Department of Revenue audit of the Transportation Penny Tax program, the county administrator said, providing no further details.

“Richland County is continuing to review and present information to the S.C. Department of Revenue in an effort to resolve questions that have been raised concerning the penny program,” according to a prepared statement from County Administrator Leonardo Brown.

Brown read the statement at a news conference on Friday but did not take questions. A news release from Richland County said it is the county’s general practice not to comment on pending litigation.

Results of the 2017 audit were released in February and questioned spending on some Penny Tax programs.

In March 2018, Richland County froze spending on projects involving the Small Local Business Enterprise program as well as money spent on two public relations firms and a mentor program. That move come after the S.C. Supreme Court agreed with the Department of Revenue that a portion of Penny Tax money has been spent on projects not related to transportation.  

“As the reported findings are preliminary in nature, we have no conclusory statements to make about the report at this time,” Brown’s statement said. “We are committed to establishing, fostering and maintaining our identity as an open government and will make every effort to be transparent throughout this process. It is important to note that this audit is part of an ongoing pending litigation matter between Richland County and the S.C. Department of Revenue.”

Richland County residents approved a 2012 referendum establishing the Penny Tax, designed to collect $1.03 billion from a 1% sales tax for various transportation-related projects, such as road safety improvements, bike paths and greenways.

The county took over management of the Penny Tax program from an independent development team in November and last week announced a restructuring of its greenway program.

Brown said Richland County Council Chairman Paul Livingston will provide a more detailed response to the audit at a later date.