In 2016, Scott Westerhuis of Platte diverted a million plus dollars from the Gear Up funds that went to the Mid-Central Cooperative for his personal use. That led Mr. Westerhuis to killing his wife and four children before setting his house on fire and killing himself. That incident led then Governor Dennis Daugaard to set up a State Board of Internal Control. Among the seven-member board’s responsibilities were establishing and maintaining financial guidelines for state agencies.
It was those internal controls that led to the discovery of the $1.8 million embezzlement of state funds from the Child Protection Services account that is currently in the courts. So far nineteen state offices and departments have gone through the review process which led to revelations involving the false creation of vehicle titles in the Department of Revenue which the perpetrators then used to obtain personal loans. Completing the internal control audits for the rest of state government could take another two years.
The Government Operations and Audit Committee, which met yesterday in Pierre, wants to speed up that process wondering naturally what else might come to light with additional audits and internal controls. The Committee recommended to Governor Noem that additional resources for the Board of Internal Control be made available in the next budget in order to speed the process of control and compliance.