Subcommittee hears Alex Partners: $1.8 billion traced to conversion entries, agencies to implement corrections

The constitutional subcommittee of the Senate Finance Committee on Thursday heard that a forensic review by Alex Partners traced approximately $1.8 billion in disputed balances inside a state treasury fund to incorrect conversion entries made during the state's migration to the SKIS accounting system.

The finding matters because the amount has circulated in public testimony as apparent cash available for appropriation even though Alex Partners concluded most of it was an accounting artifact. Clarifying that distinction — and making agreed corrective entries — is now the focus of several state offices and of a recently passed Senate joint resolution that would require a third‑party compliance monitor should implementing legislation be enacted.

Director Adams of the Department of Administration told the committee that the department issued the request for proposals used to hire Alex Partners after a proviso last fiscal year. The RFP went out June 24, 2024; Alex Partners received a notice of award July 17 and began work July 18. The contract cost the state $3,000,000, Director Adams said. The consultant delivered the report in mid‑January 2025 after roughly six months of review, including dozens of meetings and hundreds of data requests.

Clarissa Adams, chief of staff at the Office of the State Treasurer, read the treasurer's office response to the…