SC Auditor Resigns Over $1.8B Accounting Error

George Kennedy, South Carolina's State Auditor since 2015, resigned following the discovery of a $1.8 billion accounting error, initially thought to be a surplus. The error arose from a decade-old conversion of accounting systems and was not detected until a recent forensic audit by AlixPartners, which revealed most funds were fictitious and the remainder had been spent without proper accounting adjustments. Both Kennedy and former Comptroller General Richard Eckstrom, who resigned earlier in 2023, were aware of the discrepancies for years. The report criticized the lack of action to investigate the error, leading to calls for the auditor's office to become independent. Despite the findings, Governor Henry McMaster did not assign blame to any individual or office for the oversight.