COLUMBIA - The Legislative Audit Council justified its findings of mismanagement and at least $60 million in wasted funds outlined in its review of the state Department of Transportation.

About a dozen state senators took testimony Thursday from the independent auditors, who disagreed with the DOT's criticism of their report.

"They say we had no significant concerns about work that represents 99 percent of all their expenditures," Council Deputy Director Jane Thesing said during the nearly four-hour hearing. "We really have no idea what kind of math that is based on."

Thesing said auditors conducted more than 100 interviews and pored over hundreds of documents during the year-long review. Council members said the report was extensive but comprehensively reviewed all the agency's functions.

DOT Executive Director Elizabeth Mabry sat through the hearing but declined to comment on the testimony. She said she would reserve comment until the DOT's hearing on the matter today.

However, in a statement issued Tuesday to accompany the report's release, Mabry said, "The LAC report does not contain much discussion about the positive findings regarding 99 percent of the expenditures by SCDOT."

The council, which conducts reviews of state agencies at the request of lawmakers, accused the DOT of breaking state and federal law, making ineffective management decisions and showing favoritism to certain employees. It reviewed agency decisions, contracts and operations for 2002 to 2005, using some earlier data.

The senators keyed in on a few select findings, including $1.5 million in interest the council says the DOT lost by purposely postponing billings for reimbursements from the Federal Highway Administration during the legislative session. Lawmakers are sensitive to that issue because it made the DOT appear to have less cash at a time that its funding was under review.

Several lawmakers have said the report likely will lead to the restructuring of the agency, with many preferring to move it to the governor's Cabinet, which they said would provide more accountability.

During the hearing, senators asked if the council found any grounds for criminal charges.

"First of all, we're not criminal investigators and, secondly, we didn't look at everything," Council Director George Schroeder said. "But, as far as we can tell ... we did not see any evidence."

Mabry said in the Tuesday statement that the council "ignored the big picture" by taking aim at certain long-term contracts that were used to complete a progressive building program. She said the program saved taxpayers at least $3 billion by completing 200 projects in seven years instead of 27.

Sen. Chip Campsen, R-Isle of Palms, said it's best to withhold judgment of the DOT until the agency has its hearing.

"We've only heard one side at this point, but there is a lot of red flags," said Campsen, a member of one of the two Senate subcommittees reviewing the findings.

Reach Yvonne M. Wenger at ywenger@postandcourier.com or 745-5891.