South Carolina Leaders Launch Forensic Audit into $1.8 Billion Accounting Discrepancy

South Carolina leaders have launched efforts to conduct a forensic audit into a $1.8 billion accounting discrepancy in the state’s coffers. Governor Henry McMaster announced the state Department of Administration’s request for proposals to hire an independent accounting firm to review all cash and investments. The audit aims to determine where the missing funds went or if they even exist.

The missing funds were discovered earlier this year after sitting untouched in a temporary account on the state’s electronic ledger for five years. Former state Comptroller General Richard Eckstrom’s $3.5 billion accounting error also raised concerns. Blame for the discrepancy has been placed on State Treasurer Curtis Loftis, who denies any wrongdoing and claims to have invested the money, earning the state $200 million in interest.

The audit is expected to be completed by December 31, 2024, with $4 million allocated from the state budget for the investigation. While the state works to rectify the situation, questions remain about the existence and status of the $1.8 billion. The audit will provide much-needed clarity on the issue, ensuring similar problems are avoided in the future.