Below is the link that explains both
the folder and the sub-folder ..
http://support.microsoft.com/kb/260240
When you use a security configuration or analysis tool (for example, Local Security Policy or Security Configuration and Analysis), temporary files are created in the My Documents\Security\Database folder. These files are created when you make changes to Local Security Policy or when you analyze the computer's security settings. These temporary files are named Sctxxx.tmp, where a character replaces xxx.
The files are created as a byproduct of the routine that is used to verify that the user has write permissions on the Security\Templates folder. The Sctxxx.tmp files do not contain data and you can manually delete them.
- pbear