Because of the federal statute of limitations, the investigation into the South Dakota economic development office likely centers on the years between 2008 and 2010 when Mike Rounds was governor. Back then, Rounds had a differently philosophy when it came to running the Office of Economic Development.
Under Governor Rounds, the Office of Economic Development, along with a handful of other departments fell under the Department of Tourism and State Development.
Its annual budget ranged anywhere from $77 million to nearly $87 miillion to bring new businesses and start up companies to South Dakota.
When Daugaard took office he decided to restructure the office by breaking it into a few smaller departments.
Governor spokesperson Tony Venhuizen says it's common for new governors to reorganize state departments when they take office.
Daugaard wanted direct access to cabinet-level people, rather than having them all answer to a single cabinet secretary.
But Venhuizen says every program under the Office of Economic Development gets audited by different watch dogs or inspectors.
For example, the REDI fund, which is the largest program, is annually audited by the Department of Legislative Audit and examined by the State Division of Banking.
Plus, every grant and loan is listed on the Office of Economic Development website for public inspection, transparency and accountability. And according to Venhuizen that's something that wasn't done under Governor Rounds' administration.
The Governor's Office of Economic Development has commissioned an independent review of its programs.