Audit Flags County Facilities Corporation, Drives Questions About Debt

Bamberg County’s audited financial statements for 2021 through 2024 reveal a pattern of operating losses, frequent interfund transfers, and continuing debt service commitments that together have renewed scrutiny of the Bamberg Facilities Corporation. The nonprofit entity was created in June 2013 to finance county capital projects, yet county audits treat the corporation as a blended component unit, meaning it is reported as part of county government for financial reporting purposes.

Bamberg Facilities Corporation functions as a financing vehicle that issues revenue bonds to fund facilities used by the county. County lease or rent payments flow back to the corporation and are used to retire bond debt. The corporation is governed by a board appointed by County Council, and credit analysts have treated BFC debt as a county obligation, reinforcing the view that the corporation operates as an arm of county government rather than a private entity.

The audits document persistent shortfalls in enterprise operations. The Solid Waste and Landfill Fund in Fiscal Year 2023 reported operating revenues of 997,333 and operating expenses of 1,153,606, producing an operating loss of 156,273 and a net decrease in fund position of 82,076 after non operating items and transfers. Similar patterns appear across multiple years, with transfers from other county funds repeatedly used to balance operations. Audits for FY 2023 and FY 2024 also show restricted fund balances set aside for debt service, signaling continuing long term commitments tied to financing arrangements.

Despite explicit audit disclosures about BFC, its standalone financial statements, board membership, detailed lease payment schedules, and bond obligations are not routinely included in monthly public financial reports. Several years ago county attorneys sent a cease and desist letter to a resident asserting BFC was a private nonprofit not subject to disclosure requirements, a position that audits appear to complicate.

A FOIA request filed December 19, 2025 seeks BFC financial statements and audits, lease and installment purchase agreements with the county, bond and debt schedules, and records identifying BFC board members and county appointed appointees. The audits do not establish wrongdoing, yet they raise concrete questions about whether BFC financing structures contribute to recurring enterprise losses, dependence on transfers, and growing long term liabilities.

For Bamberg County residents and policymakers the implications are clear. Greater transparency about the corporation that finances public facilities is essential for informed budget decisions, effective oversight by County Council, and public confidence in the county’s fiscal health.