Lawmakers want to know the 'good, bad and ugly' about alleged $1.8 million theft

(The Center Square) - Members of South Dakota's Government Operations and Audit Committee grilled Auditor General Russell Olson over why a $1.8 million alleged theft by a state employee wasn't discovered but received few answers.

Lonna Carroll, 68, of Algona an employee for Child Protection Services in Hughes County. She was indicted by a grand jury on two counts of grand theft earlier this month, according to Attorney General Marty Jackley.

The first count accuses Carroll of stealing more than $500,000 between July 2013 and March 2023. The second count in the indictment said Carroll took more than $100,000 between January 2010 and June 30, 2013.

In South Dakota's single audit report for the fiscal year that ended June 30, the Department of Social Services, which oversees Child Protective Services, was cited for a "material weakness" in the handling of Temporary Assistance for Needy Families, known as TANF. The claims were only handled by one person and not reviewed by another employee. The department handled $7.2 million in claims in fiscal year 2023, according to the audit.

The Department of Social Services agreed with the auditor's recommendation that its internal controls should be strengthened but did not add details.

Olson was vague in some of his answers during Thursday's meeting, which frustrated lawmakers. In response to a question by Sen. David Wheeler, R-Huron, Olson said, "This finding came about based on issues that were noticed that led to the investigation, yes."

When asked other questions, he said he was not comfortable answering them because of the ongoing criminal investigation.

Committee Chairman Ernie Otten, R-Tea, said the hearing should include more details.

"My intent is when we come into October, if you want Clint Eastwood it, we will--the good, the bad and the ugly," Otten said. "We find out what went on and how do we stop it."