State Accident Fund’s Financial Report Overdue; SC State University, Denmark Tech Continue Timely Reporting Problems

Oct. 16, 2015
For Immediate Release

Columbia, S.C. – The State Accident Fund today joins a short list of state entities that remain out of compliance with legally required financial reporting deadlines. The two other entities on the list are S.C. State University and Denmark Technical College whose timely reporting problems continue. 

The three agencies have not submitted their audited financial statements for fiscal year 2014-15 to state Controller Richard Eckstrom’s office by legal due dates established by the S.C. General Assembly. The fiscal year ended June 30. 

The State Accident Fund’s deadline was Thursday, Oct. 15. The due date for S.C. State University and Denmark Technical College was Sept. 30. All three failed to meet their deadlines the previous three fiscal years as well.

The South Carolina Medical Malpractice Joint Underwriting Association, after also missing its 2014-15 deadline (Oct. 10), submitted its audited financial statements on Oct. 15. 

For S.C. State University, its failure to demonstrate that it exercises appropriate control over its financial resources is one reason recently cited by the Southern Association of Colleges and Schools for maintaining the university’s accreditation on probation. Providing timely results of an independent audit of its financial statements as part of a statewide audit is a requirement for demonstrating appropriate financial controls. For more information about this, see the accompanying SACS “Disclosure Statement Regarding the Status of South Carolina State University” (issued June 18, 2015) and its accreditation principles that include core requirement 2.11.1.

Eckstrom says that state agencies create problems when they fail to meet their deadlines because it delays his staff’s completion of the statewide comprehensive annual financial report (CAFR), thereby delaying the state’s ability to provide essential information on state government’s financial condition to the General Assembly, credit rating agencies and other users. 

Deadlines for agencies to submit their annual audited financial statements to Eckstrom’s office are spelled out in the state’s budget passed each year by the General Assembly.

“We expect management and oversight bodies of all delinquent agencies to increase their commitment to meeting the crucial reporting deadlines mandated by Proviso 117.62 of the 2014 15 Appropriations Act,” Eckstrom says. “These reporting deadlines directly impact the timely completion of the state’s CAFR. We greatly appreciate the majority of agencies that have provided us their financial statements on time.” 

For more information please contact Eric Ward, public information director, at 803-734-2538; 803-206-6293 or eward@cg.sc.gov.

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