South Dakota Legislature likely to address DSS theft in upcoming meetings

SIOUX FALLS, S.D. (Dakota News Now) – The South Dakota Government Operations and Audit Committee is likely to address the $1.78 million stolen from the Department of Social Services in its upcoming meetings. That’s according to two state senators on the committee who are responding to last week’s announcement of Attorney General Marty Jackley.

MORE: Former DSS employee indicted for stealing $1.78 million from state

Members of the GOAC reacted by indicating they would be taking a closer look into how the Department of Social Services audits itself, as well as how the external audits the department faces work.

Those calling for a review include Sen. David Wheeler (R-Huron), who said Tuesday that they need to get to the bottom of how that much money could be stolen over more than 13 years.

“Anytime you have a theft of that magnitude of state funds raises serious issues regarding the controls that were in place, how did it happen, how’s it allowed to go on for that amount,” Wheeler said.

Joining him in that sentiment is Sen. Tim Reed (R-Brookings), who said in a post on X Friday, “As a member of Government Operations and Audit Committee I will be asking that we investigate this specific issue and review auditing procedures.”

Department of Social Services Cabinet Secretary Matt Althoff meanwhile said they’re working through their own guardrails.

“We need to review this. This is something that GOAC is supposed to be looking at, should be looking at to ensure that we are providing proper legislative oversight for the executive branch,” Wheeler said.

As the Attorney General said, employees at the Department of Social Services discovered suspicious financial activity and reported it to the Division of Criminal Investigation. DSS staff cooperated completely with the investigation.

DSS utilizes both internal and external audits, reconciliations, and internal controls to safeguard public funds – additional safeguards have already been implemented, and we continue working to identify further prevention and detection methods.

Advertisement

As this is an ongoing criminal case, DSS cannot comment further.

Wheeler said they’re going to be looking at all of the procedures that were in place, see if they were being followed, and if the right restraints were there at all.

“So it’s going to be an important issue for the legislature to take up to ensure that the appropriate controls are in place. We don’t want something like this happening again,” Wheeler said.

Wheeler also added that it’s one of the duties of the Legislature to act as oversight for the executive branch, and this is within their scope of operation.

“We need to review this. This is something that GOAC is supposed to be looking at, should be looking at to ensure that we are providing proper legislative oversight for the Executive branch,” Wheeler said.

The GOAC next meets July 31 in Pierre.

Copyright 2024 Dakota News Now. All rights reserved.