State Treasurer Defends Office, Says $1.8 Billion Was an accounting entry as Panel Probes SKIS Fund

State Treasurer Curtis Loftus told a constitutional subcommittee of the South Carolina Senate on the record that the State Treasurer’s Office’s internal review found cash and investments “properly accounted for” even as lawmakers pressed him over an $1.8 billion SKIS accounting entry and related public statements.

The treasurer opened by presenting a report from his office, saying, “The report issued by my office today is the end product of a comprehensive internal review… Every citation or assertion of fact is supportive of evidence, as provided in 300 pages of exhibits.” He also said, “We passed with flying colors. We’re proud to confirm that there is no mystery bank account. There never was.”

Why it matters: The hearing probed why the $1.8 billion figure was described in public testimony and media accounts as though it were a bank account balance. That description prompted intensive media coverage and concern from municipal and institutional borrowers and credit observers because of the potential perception of a multibillion-dollar bookkeeping error in state financial reporting.

Loftus told senators his office accepted the outside consulting firm Alex Partners’ findings and said the firm’s principal recommendation for the treasurer’s office was to…