Must an agency funded only partly by a county obtain an independent annual audit?

Plain-English summary

The Attorney General said an agency receiving only part of its funding from a county did not need the mandatory independent annual audit required for an agency funded wholly by county funds. Any agency receiving county money still had to provide a full, detailed annual fiscal report to county council. The county could also order a special audit of any agency receiving its funds when it considered one necessary.

Currency note

This opinion was issued in 2003. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

Historical summary

Partly funded agencies

The AG agreed that partial county funding did not trigger the mandatory independent annual audit. A full annual fiscal report remained required.

County councils

The mandatory independent annual audit covered the county's records and transactions and wholly county-funded agencies. The statute also permitted special audits for any agency receiving county funds.

Common questions

Does partial county funding alone require the annual independent audit?
No, according to this opinion.

Can the county require a special audit?
Yes. The opinion pointed to the county's statutory power to provide one when needed.

Background and statutory framework

The request contrasted the cost of a certified public accountant's audit with a fiscal report for partly funded agencies. The AG read §§ 4-9-140 and 4-9-150 according to their different language for reports and audits.

Citations and references

The opinion cited S.C. Code Ann. §§ 4-9-140 and 4-9-150.

Official title

Questioning whether agencies funded in part by the county need an audit performed by a certified public accountant or just a financial report.

Requester

Sammy G. Diamaduros, Esquire

Source

• Landing page: https://www.scag.gov/opinions/opinions-archive/august-18-2003-1/
• Original PDF: https://www.scag.gov/wp-content/uploads/2013/03/03aug-18-Diamaduros.pdf

Original opinion text

The State of South Carolina

OFFICE OF THE ATTORNEY GENERAL
HENRY MCMASTER
AlTORNEY GENERAL

August 18, 2003

L.
Sammy G. Diamaduros, Esquire
P. 0. Drawer 643
Union, South Carolina 293 79
Dear Mr. Diamaduros:
In a letter to this office you questioned whether agencies funded in part by the county need an audit performed by a certified public accountant or just a financial report. You provided a letter setting forth your opinion that an audit is not necessary as to agencies funded in part by a county. Instead, it would be sufficient for those agencies to provide a full, detailed fiscal report to county council. You also commented that it would be cost prohibitive for agencies that are funded only in part by the county in that agencies which may only receive a certain percentage of their funds from a county would incur a large cost to perform an audit.

hr.

~

I

S.C. Code Ann. Section 4-9-140 (1986) provides that "(a)ll county offices, departments, boards, commissions or institutions receiving county funds shall make a full, detailed annual fiscal report to the county council at the end of the fiscal year." S.C. Code Ann. Section 4-9-150 (Supp. 2002) provides that The council shall provide for an independent annual audit of all financial records and transactions of the county and any agency funded in whole by county funds and may provide for more frequent audits as it considers necessary. Special audits may be provided for any agency receiving county funds as the county governing body considers necessary. (Emphasis added). Language that is clear and unambiguous must be interpreted !iterni1y". Green '.r. Zimmem1an. 269 S.C. 535, 238 S.E.2d 323 (1977). Consistent with Section 4-9-140, any agency receiving county funds must make a full annual report to the county each year. There must also be an audit of any agencies funded in whole by the county I am in agreement with your conclusion that if an agency is funded only in part by the county, no audit is necessary. However, as further provided by Section

/}

REMBERT C. DENNIS 8Uil.J)ING

J. . "k:V./ __..,.,

•

POST OFFICE Box 11549

•

COLUMBIA ,

s.c. 29211-1549 • TELEPHONE : 803-734-3970 • f ACSIMil..E: 803-253-6283

Mr. Diamaduros
Page2
August 18, 2003

4-9-150, special audits may be provided for any agency receiving county funds as considered necessary by a county. With kind regards, I am, Very truly yours,

L
Charles H. Richardson
Senior Assistant Attorney General
CHR/an

~lil

12

I