Legislators plan to examine alleged state employee crimes in upcoming meetings

The legislative Government Operations and Audit Committee plans to analyze and question state agencies about alleged crimes within their departments that have come to light this summer.

A former state Department of Social Services worker pleaded not guilty last month to stealing an estimated $1.8 million from the department’s Division of Child Protection Services over the course of 13 years. The trial is scheduled to begin on Dec. 4.

Further revelations emerged this summer about the state Department of Revenue, where two former employees have been accused of falsifying documents. One of the employees used her position within the department to create 13 fake vehicle titles used to secure $400,000 in loans, according to the Attorney General’s Office, which is reportedly investigating similar allegations in the second case.

The committee will discuss the Department of Revenue situation at its Oct. 21 meeting, and will consider whether an outside organization is needed to conduct deeper financial audits in state government. The committee will discuss the Department of Social Services matter on Dec. 11 and 12.

On Tuesday during a meeting in Pierre, lawmakers on the committee pressed Bureau of Finance and Management Commissioner Jim Terwilliger for information about the State Board of Internal Control , which is tasked with implementing a system among state agencies to detect and prevent financial fraud.

The board adopted a plan in 2019 to create a statewide internal control framework. The board has worked through 19 agencies since then and has 10 more to go. Terwilliger said the board implemented internal controls within four state agencies in fiscal year 2024.

Terwilliger said the state is “much better off” than it was before the framework, but there is more work to do in light of the recent investigations.

“When things like this happen, it’s frustrating because it shouldn’t happen and you put people in places of trust,” Terwilliger said.

Sen. Jean Hunhoff, R-Yankton, said she’d like to see the Bureau of Finance and Management reevaluate how it tracks its success with internal controls, since it only tracks how many state agencies implement internal controls throughout the fiscal year.

“I do believe, based on the history of what’s happened this summer, we need to have some kind of metric there other than saying ‘I’m going to all agencies,’” Hunhoff said.

This article originally appeared on Sioux Falls Argus Leader: Legislators plan to examine alleged state employee crimes in upcoming meetings