The mission of the State Auditor’s Office is to serve as a deterrent to fiscal mismanagement, fraud, and misuse of assets by state agencies and providers of Medicaid services and to provide audit coverage of those entities as required by law or regulation. Medicaid audit reports are provided to the Department of Health and Human Services and to the Medicaid service providers. The State Auditor's Office performs the audit of the State's General Purpose Financial Statements, and the Single Audit of the State's Schedule of Expenditures of Federal Awards.
The State Audits Section of the State Auditor's Office performs financial audits of state agencies, the annual financial audit of the State's General Purpose Financial Statements, and the annual Single Audit of the State's Schedule of Expenditures of Federal Funds. These audits cover all State agencies with appropriated funds of nearly $6 billion. The size of the agencies ranges from very small to an agency with appropriations of $1.8 billion.
Copies of all financial and compliance audit reports and management letters are provided to the Governor's Office, Comptroller General, State Treasurer, Senate Finance Committee, House Ways and Means Committee, the Board's Budget Division, Legislative Audit Council, and State Library. These reports are particularly important because they point out material weaknesses in an agency's accounting system or procedures. They also highlight instances in which regulations or laws were violated.
Technical assistance is provided to other governmental entities by either assisting with or fully completing reviews of financial records and record keeping systems of organizations which have been identified through allegations as having financial problems of a management or criminal nature. Assistance is primarily furnished to the South Carolina Attorney General's Office, the State Law Enforcement Division, the U.S. Attorney's Office and the South Carolina Court Administration. Assistance is also provided to other state agencies, local governments and other federal government entities when appropriate requests are received. These special reviews are completed by obtaining pertinent financial records from the organization or from third party sources, interviewing employees or other individuals, and completing audit and review procedures appropriate to the specific circumstances. The review findings are normally summarized in a confidential report. The special review may result in the need for the auditor to appear in court and testify regarding the findings.
The Medicaid Audits Section of the State Auditor's Office performs audits and reviews of cost reports filed by institutional providers of Medicaid services. These cost reports are used by the Health and Human Services Finance Commission to establish amounts to be paid to these providers for services provided to qualified Medicaid recipients. Each year, approximately 100 Medicaid contractors are audited with program funding of over $230 million. This Section also supports investigative agencies in their investigations involving Medicaid providers.