COLUMBIA, S.C. -- An audit of the state's finances is supposed to reveal what led to a $1.8 billion accounting error that left that money sitting in a state account by the end of the year. Final results of that audit have now been delayed for two more weeks, according to a letter from the Department of Administration to the Governor.
South Carolina officials are still working to understand how the mystery $1.8 billion ended up unaccounted for and where the funds should go.
Independent accounting firm Alixpartners was hired by the Department of Administration to look into the state's treasury department account and recommend corrective action in a report by the end of the year. The proviso that outlines the terms of the audit allows the Department to get an extension if needed.
In a December 13 letter from the Department of Administration's Executive Director Marcia Adams to Governor Henry McMaster, Adams says "While as of the date of this letter AlixPartners has made substantial and tangible progress... there are additional meetings, interviews, document reviews, etc. needed."
The investigation into the missing funds has sparked tensions between lawmakers, the state Comptroller General and Treasurer Curtis Loftis. The Governor created a task force including the Comptroller General and Treasurer's office, while the Senate finance committee grilled Loftis on the funds in an April meeting.
State Treasurer Curtis Loftis has maintained that the funds were never missing and were always accessible. He and the Comptroller General said the other should have been responsible for the money.
"The $1.8 billion was never missing. It has never been hidden. Ever. Anybody using SCEIS can find that fund right exactly where it's supposed to be," Loftis said.
Loftis threatened to release state financial data relating to the $1.8 billion, putting the state at risk for a cyberattack by releasing sensitive information, according to a Senate subcommittee's report. The report also accused him of "a lack of response and control of the fund.
The final report from the independent audit is now set for January 15.