A state working group, under the direction of Governor Henry McMaster, has completed its preliminary work. This paves the way for an independent forensic accounting review into questions surrounding $1.8 billion in state funds. This review, mandated by the 2024-2025 state budget, aims to clarify the existence and nature of these funds.
The Department of Administration, tasked with coordinating the effort, has issued a request for proposals to secure an independent accounting firm. This firm will conduct a thorough examination of cash and investments held in the State Treasury and analyze historical financial reports. A contract is anticipated to be awarded around July 16.
The working group, comprised of representatives from the State Treasurer’s Office, Comptroller General’s Office, State Auditor’s Office, Department of Administration, Attorney General’s Office, and the Governor’s Office, has diligently analyzed the 2022 Annual Comprehensive Financial Report (ACFR) restatement. Their work has involved collecting and organizing extensive documentation and improving inter-agency collaboration on financial oversight.
Since April, the group, which also included outside legal counsel, convened 11 times and held numerous individual and cross-agency meetings. Key achievements include centralizing bank and investment statements, creating a platform for accessing conversion entries to the state’s current South Carolina Enterprise Information System (SCEIS), and documenting relationships between agencies, the treasury, and ACFR funds. They also established an environment to test potential SCEIS changes.
The working group will continue to meet, analyzing transactions related to the $1.8 billion, including work on the 2022 ACFR restatement and improving inter-agency processes. They will also collaborate with the selected accounting firm throughout the review.
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