Gov. Kristi Noem (R-SD)
By: Makenzie Huber
PIERRE, S.D. (South Dakota Searchlight) – Gov. Kristi Noem signed an executive order Monday and signaled the preparation of a legislative package to strengthen internal controls in South Dakota state government after several cases of allegedly criminal state employee conduct.
Noem did not directly mention any of those specific cases in the executive order or a news release.
“We are taking enhanced measures to strengthen the fortitude of our financial infrastructure and make sure that we are taking care of taxpayer dollars,” Noem said in the news release. “And we will guarantee that state employees are responsible stewards for the people that they serve.”
The executive order requires state employees to participate in training covering the concepts of public trust, duty to act, internal controls, conflict of interest and a “service mindset for the citizens of South Dakota.” The commissioner of the Bureau of Human Resources and Administration will develop the program. State employees and supervisors will take the training on an annual basis.
Noem said her “four cornerstones” approach to strengthening fiscal oversight also includes more support for the State Board of Internal Control — including hiring an additional internal control officer, which Noem said she’s already done — and “enhancements” to policies, procedures, systems and technology.
Noem did not release any specific legislative proposals but indicated her legislative package would include “clearer and stronger accountability measures.” Noem’s office did not immediately respond to further South Dakota Searchlight questions about the legislation and training program.
Noem will deliver her annual budget address next week, and the annual legislative session will begin in January. That’s the same month the governor is expected to be formally nominated as President-elect Donald Trump’s secretary of Homeland Security.
Separately, state Attorney General Marty Jackley has said he plans to propose legislation this session, which would include requirements for state employee supervisors to report questionable employee behavior to his office, protections for whistleblowers, stronger protections for the state auditor, and transparency requirements for reporting on allegations of state employee misbehavior.
State departments have also told lawmakers they’re making their own improvements, and that impending technology changes to the accounting and motor vehicle systems will provide more accountability. Meanwhile, the head of a legislative audit committee has said further legislative proposals addressing internal controls may have to wait until pending criminal cases are resolved and lawmakers have complete information.
Jackley’s office has brought charges against several former state employees recently.
A former state Department of Social Services worker pleaded not guilty in August to stealing an estimated $1.8 million from the department’s Division of Child Protection Services over the course of 13 years. She allegedly created and approved fraudulent financial support orders for children.
In the state Department of Revenue, a deceased former employee allegedly used her position to create 13 fake vehicle titles used to secure $400,000 in loans, according to the Attorney General’s Office. The office filed charges in a related case last month against two other former employees — one who allegedly created a false vehicle title to claim she had a trade-in vehicle, allowing her to avoid some excise taxes, and another employee who allegedly failed to report the situation and cooperate with law enforcement. The two women have pleaded not guilty.
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