Hampton County Audit Report Finds ‘Waste, Abuse And Unauthorized Spending’

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A blistering forensic audit of Hampton County, South Carolina has confirmed what many residents long suspected – that county government spent years mismanaging millions of taxpayer dollars by diverting restricted funds for operating expenses, racking up lavish credit card charges and bailing out favored nonprofits.

All while critical public projects went unfunded…

Released last Thursday (June 26, 2025) by Eide Bailly LLP on behalf of the S.C. Office of State Auditor (SCOSA), the 50-page report outlined a staggering pattern of internal control failures, missing documentation and unauthorized fund transfers between 2016 and 2024 — with most of the questionable conduct occurring during the tenure of longtime administrator Rose Dobson-Elliott.

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MILLIONS DIVERTED FROM RESTRICTED FUNDS

The audit’s most serious findings center on the misuse of the county’s Capital Projects Sales Tax (CPST) fund — a voter-approved 1% tax meant to fund priority infrastructure projects like a recreation complex, library improvements and emergency services facilities. Instead, between 2015 and 2021, $9 million from the CPST fund was loaned to the general fund to cover shortfalls — with $3 million still outstanding. These transactions, auditors noted, were not allowed under South Carolina law.

Additional questionable loans included:

• $750,000 from the Airport Commission Fund (with $100,000 still owed and another $375,000 potentially unpaid);
• $243,000 in undocumented transfers from the E911 Fund;
• $933,000+ in “advances” from a mix of restricted funds — including the school district, fire bonds, and community groups.

Most of these inter-fund transfers lacked documentation or council approval. In FY 2024 alone, auditors found $276,000 in unmatched transactions across 25 journal entries — missing both explanation and accountability.

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RELATED | HAMPTON COUNTY OWES $3.6 MILLION TO CAPITAL PROJECTS FUND

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CHAOTIC ACCOUNTING, MISSING RECORDS, AND OVERSIGHT FAILURES

The audit found that many key financial documents were missing or never existed. Transactions lacked documentation. County staff frequently moved money between accounts with no oversight or policy. Between 2015 and 2019, the treasurer’s office operated using a handwritten ledger instead of modern accounting software.

Budget decisions lacked transparency, with no records of how figures were developed or reviewed. Department heads didn’t receive spending reports, and council did not approve inter-fund loans.

Much of the financial dysfunction outlined in the audit occurred under the leadership of Dobson-Elliott, who returned to county government in 2015 as interim administrator, replacing outgoing administrator Sabrena Graham. Her hiring — later made permanent — sparked local opposition, with some Hampton County residents publicly raising concerns about her career history.

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Dobson-Elliott had previously served as Hampton County’s administrator from 1991 to 2002, resigning amid what she described at the time as “unresolved issues” that hampered her ability to do the job.

Despite this track record, she was reappointed and ultimately served a second stint as administrator from 2015 to late 2022, when she resigned to take a job in neighboring Jasper County.

In August 2024, Dobson-Elliott was indicted by the South Carolina statewide grand jury and was charged with embezzlement of public funds in an amount less than $10,000 tied to her most recent term. She was released on a $10,000 personal recognizance bond while her case is pending.

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RELATED | LOWCOUNTRY SOUTH CAROLINA OFFICIALS INDICTED

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LAVISH SPENDING, CREDIT CARD ABUSE AND NONPROFIT BAILOUTS

The report revealed what auditors referred to as “waste and abuse” of county-issued credit cards, with nearly $750,000 in charges during the scope period. Purchases included:

• Meals, alcohol, room service, and Uber rides during out-of-state travel;
• Ice cream, coffee drinks, and excessive restaurant tips;
• More than $15,000 in finance charges and late fees;
• Little to no documentation or oversight — and in many cases, no explanation for expenses.

Former county administrators appeared to use credit cards “almost exclusively” for routine purchases, in direct violation of county policy.

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Auditors flagged multiple transactions involving private nonprofits with no evidence of county council authorization:

• Hampton County made five direct payments to ‘Friends of the Arts’ group totaling $44,732 to cover a nonprofit’s private bank loan, including a final loan payoff of more than $41,000. The funds were disbursed from the county’s accounts and approved by the former administrator.
• A separate $5,000 in credit card charges were used to support a gala for the Friends of the Arts — including liquor, iPads, and tablecloths.
• The county also spent more than $14,000 on T-shirts and merchandise for Mal’s Palz – an animal shelter nonprofit — with invoices billed to a private individual rather than the county.

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WHAT’S NEXT?

It remains to be seen whether criminal charges or formal ethics complaints will follow in the wake of the report. While the document makes no legal conclusions, it flags numerous transactions that may violate state law and urges additional review by both the state and county.

The S.C. State Law Enforcement Division (SLED) has reportedly obtained financial records tied to the credit card activity and nonprofit payments. Whether the agency — or the Office of the Inspector General — will initiate further investigation is unknown.

One thing is clear: Hampton County voters approved a capital projects tax to fund libraries, recreation centers, and emergency infrastructure. Instead, that money propped up a failing general fund and paid for Uber rides and open bars.

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THE REPORT…

(SCOSA)

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ABOUT THE AUTHOR …

As a private investigator turned journalist, Jenn Wood brings a unique skill set to FITSNews as its research director. Known for her meticulous sourcing and victim-centered approach, she helps shape the newsroom’s most complex investigative stories while producing the FITSFiles and Cheer Incorporated podcasts. Jenn lives in South Carolina with her family, where her work continues to spotlight truth, accountability, and justice.

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