In 2023, South Carolina officials discovered a big financial anomaly: $1.8 billion was found unmarked in a governmental bank account. This surprising finding spurred a concerted inquiry to determine the sources, purpose, and intended destination of these monies. In response, Governor Henry McMaster formed a working group that included representatives from the State Treasurer’s Office, Comptroller General’s Office, State Auditor’s Office, Department of Administration, Attorney General’s Office, and Governor’s Office.
The working group, directed by Executive Director Marcia Adams of the Department of Administration, was entrusted with doing preliminary analysis and documentation for a comprehensive forensic accounting study. The group has been meeting since April, with 11 official meetings and countless more sessions to coordinate and improve processes across the participating organizations.
Governor McMaster emphasized the significance of interagency cooperation in correcting this financial issue. He applauded the working group’s efforts to analyze the 2022 Annual Comprehensive Financial Report (ACFR) restatement and improve collaboration methods. This groundwork is critical for the next independent forensic examination.
As required by Proviso 93.19 in the 2024-2025 state budget, the Department of Administration issued a call for bids to hire an independent accounting firm. This business will perform a forensic accounting analysis of cash and investments held by the State Treasury, as well as an examination of past financial records.
The forensic review’s principal aims are to establish the source and intended use of the $1.8 billion and to provide recommendations for improvements to the state’s financial monitoring mechanisms. The working group will continue to assist the external accounting firm throughout the examination, ensuring that the probe is complete and transparent.
The revelation of $1.8 billion in unrecorded cash triggered a substantial response from the South Carolina government. The state hopes to explain the issue, improve financial supervision, and prevent similar inconsistencies in the future through the coordinated efforts of numerous state departments and an approaching forensic study by an independent firm.
