The state of South Dakota is waiting for reports from the Department of Legislative Audit on the flow of federal money through Mid Central Educational Cooperative to outside organizations. 

Back in December, an Eide Bailly forensic audit commissioned by Mid Central turned up very few problems and showed that the money coming in matched the money going out of the educational cooperative.

But it didn’t show how the money was actually spent and if it was allowed under the grant.  It also didn’t look at any of the activity carried out by subcontractors for GEAR UP.

The Department of Legislative Audit is currently working on a special report that follows the money through organizations, like the American Indian Institute for Innovation, which got millions in grant money from Mid Central.

Auditor General Marty Guindon tells me that he does not have an estimated completion time for that information to be released to the public yet.

Mid Central’s board voted to have Guindon’s department conduct its Single Audit required by federal law for the fiscal year ending in June of 2015, because legislative audit has already gone over most of Mid Central’s books for its 2015 single audit report to the state.  That report not only will look at the finances, but also if Mid Central followed the rules for the federal grant programs.

The Department of Legislative Audit has also added a place for people to anonymously report fraud, non-compliance or abuse in the state. 

However, the state of South Dakota does have not whistleblower laws like those enacted in other states. 

Meanwhile Attorney General Marty Jackley will check out the political science class’ GEAR UP web at USD on Thursday.
The students constructed the web based on our KELOLAND News investigative reports and their own research into who was involved with the GEAR UP funds. 

Jackley tells KELOLAND News he’s always interested in any information he can get on a case he’s working on.

The GEAR UP case involving the three people charged with felonies is back in court in August.