A joint resolution

 

TO PROVIDE AUTHORIZATION FOR THE DEPARTMENT OF ADMINISTRATION TO EXPEND CERTAIN FUNDS TO ENGAGE AN INDEPENDENT compliance consultant FOR REVIEW OF COMPLIANCE of the office of the state treasurer, the Office of the Comptroller General, and the Office of the State Auditor WITH RECOMMENDATIONS IN THE ALIXPARTNERS FORENSIC Accounting REPORT and other relevant recommendations.

 

Whereas, the general appropriations act for Fiscal Year 2024-2025 required the Department of Administration to engage a forensic accounting firm, experienced in forensic accounting, to conduct a forensic accounting review of all cash and investments held in the State Treasury; and

 

Whereas, the general appropriations act for Fiscal Year 2024-2025 further required that the Office of the State Treasurer work in conjunction with the Department of Administration on a plan of implementation to utilize the funds appropriated to the Office of the State Treasurer for support of this forensic accounting review as would be needed to fully cooperate with the forensic accounting firm, subject to review and comment by the Joint Bond Review Committee; and

 

Whereas, the scope of work charged to the forensic accounting firm included making recommendations for any corrective entries and actions necessary, along with recommendations for procedures and controls to be implemented in the future; and

 

Whereas, the Department of Administration awarded the contract for the forensic accounting review to AlixPartners LLP of Washington, DC who has now provided its final report to the Governor, the President of the Senate, the Chairman of the Senate Finance Committee, the Speaker of the House of Representatives, and the Chairman of the House Ways and Means Committee; and

 

Whereas, the report makes a clear recommendation, among others, that an independent third party such as an independent compliance consultant be hired to assess and oversee compliance with all recommendations in this report; and

 

Whereas, as of the most recent deadline for submission of agenda items for review by the Joint Bond Review Committee, no plan of implementation as required by Proviso 117.186 for support of the audit has been received from the Office of the State Treasurer.  Now, therefore,

 

Be it enacted by the General Assembly of the State of South Carolina:

 

SECTION 1.  The General Assembly hereby redirects the funding appropriated to the Office of the State Treasurer for Audit Support pursuant to Proviso 117.186 to the Department of Administration to be utilized to hire an independent compliance consultant to assess and oversee compliance with all recommendations in the AlixPartners forensic accounting report and other relevant studies conducted in Fiscal Years 2023-2024 and 2024-2025. Procurements by the Department of Administration made pursuant to this section are exempt from the purchasing procedures of the South Carolina Procurement Code in Chapter 35, Title 11.

 

SECTION 2.  The Office of the State Treasurer, the Office of the Comptroller General, and the Office of the State Auditor are directed to identify recommendations made in the AlixPartners forensic accounting report and other relevant studies conducted during Fiscal Years 2023-2024 and 2024-2025 that do not require statutory change and begin implementation of those recommendations immediately in coordination and with oversight of the Department of Administration. The Department of Administration has the authority to request support from any agency of the State and all reasonable requests shall be granted. Further, the Office of the State Treasurer, the Office of the Comptroller General, and the Office of the State Auditor shall provide a monthly written report on the status of implementation to the Governor, the President of the Senate, the Chairman of the Senate Finance Committee, the Speaker of the House of Representatives, and the Chairman of the House Ways and Means Committee beginning no later than February 15, 2025 and until such time as the Department of Administration determines the monthly report is no longer necessary.

 

SECTION 3.  This joint resolution takes effect upon approval by the Governor.

 

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