Palmetto State News

COLUMBIA, S.C. – The working group established by Governor Henry McMaster this spring to investigate the existence of $1.8 billion in state funds has prepared the necessary documentation and information for a forensic accounting review to commence in the new fiscal year.

In accordance with Proviso 93.19 of the 2024-2025 state budget, the Department of Administration, under Executive Director Marcia Adams, issued a request for proposals to engage an independent accounting firm. This firm will perform a forensic accounting review of cash and investments held in the State Treasury and review cash and investments found in the state’s historical annual comprehensive financial reports (ACFRs). The contract is expected to be awarded around July 16.

“We recognize the importance of people and agencies working together — collaborating, communicating, and cooperating — across boundaries to work for the citizens of our state,” said Governor Henry McMaster. “I commend the working group for doing just this. We will continue to build on their hard work and support and count on their aid to the outside accounting firm to conduct what will be a thorough review.”

The working group includes employees 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. They have been analyzing the 2022 Annual Comprehensive Financial Report (ACFR) restatement, collecting and organizing information and documentation, and enhancing processes among agencies involved in overseeing state financial activity.

“These individuals and agencies have been committed to working together to determine the existence, purpose, and intended destination of the $1.8 billion in question,” said Department of Administration Executive Director Marcia Adams.

Since April, the working group has met 11 times along with numerous individual and cross-agency meetings. Their accomplishments include creating a centralized location for various bank statements; developing a platform for direct access to entries related to legacy systems conversion; recreating reconciliations of ending cash balances; documenting relationships between agencies; and creating an environment for testing potential changes before implementation.

The working group will continue meeting to discuss transactions related to the $1.8 billion in question and enhance processes among agencies involved in financial oversight. Additionally, they will collaborate with the selected accounting firm during its review.