South Dakota State Departments Face Scrutiny Over Financial Mismanagement, Seek Additional Resources for Prevention

Allegations of financial mismanagement in multiple South Dakota state departments have sparked discussions among the State Board of Internal Control on the need for more staff and resources.

The Department of Social Services, where a former employee allegedly stole $1.7 million over 13 years, has hired an internal control officer.

The Department of Revenue, involved in a separate investigation over falsified vehicle titles, implemented an anonymous reporting system and is considering adding its own internal control officer.

State officials emphasized the importance of enhancing internal controls to prevent future fraud, with some departments advocating for additional personnel.

The board is now evaluating the possibility of expanding its internal resources, though legislative delays may prevent action until mid-2025.