Senate subcommittee says $1.8 billion unreconciled on treasury books, recommends removal of Treasurer Curtis Loftus

The Senate constitutional subcommittee told the full Senate Finance Committee that its 13‑month investigation found conversion‑related accounting entries that net to $1.8 billion on the treasury books and recommended removal of State Treasurer Curtis Loftus for willful neglect of duty and other causes.

Senator Grimes, presenting the subcommittee’s final report, said the discrepancy first surfaced during preparation of the state’s annual comprehensive financial report and that Comptroller General Gaines had repeatedly sought satisfactory explanations from the treasurer’s office. The subcommittee contracted a forensic audit by Alex Partners and assembled roughly 640 exhibits documenting the findings.

“Today, right now, multi‑billion dollar errors continue to exist in the treasury books, making them inaccurate and incomplete,” Senator Grimes said. He reported that the forensic review traced the $1.8 billion net balance to entries that accumulated during a conversion from the legacy accounting system (Stars) to a newer…