An independent auditor released a report Wednesday about how $1.8 billion ended up either unaccounted for or improperly recorded in South Carolina’s bank accounts.
Their conclusion was $1.6 billion of the $1.8 Billion is the result of incorrect journal entries recorded during a phased bank conversion process and the remaining approximately $200 million is already included in the reported bank balances of the State Treasurers Office.
In other words, the report states that $1.6 billion of the total is not actual cash and the remaining $200 million belongs in the State's General Fund. In a statement from the Governor's Office following the report.
Governor McMaster said the funds do not exist and the issue was the result of unintended accounting and mistakes by different parties in the transition from an old accounting system to a new system.
McMaster added that he is confident that corrective actions recommended in the $3 million dollar forensic accounting review will be adopted by the legislature so this does not happen again.