Officials within two state departments under the microscope following allegations of financial misconduct say they’re taking steps to tighten internal controls.
Former employees of both the Department of Social Services and Department of Revenue are the subjects of investigations by the attorney general’s office.
The DSS investigation centers around a former staffer who is accused of embezzling $1.8 million over the course of several years. Department secretary Matt Althoff told the state Board of Internal Controls the attorney general's investigation into the incident is informing efforts to improve the department.
“There’s a lot of things they have helped us see in ourselves. I want to be very clear – that’s the biggest source points for some of our mitigation efforts that have been implemented or are in the process of being implemented,” Althoff said.
Althoff pointed to a stricter disbursement approval process and tightening the way software permissions are granted as examples of improvements. He also noted the DSS has a dedicated internal control officer.
Kristin Jasper is legal counsel for the Department of Revenue. She told the board at its Monday meeting her office is undergoing widespread reviews to identify areas of risk and address potential problems.
“I liken this to potholes. You fill the big hole, and once the big pot hole is filled, you realize where some of the other smaller areas of weaknesses, or where other problems are located," Jasper said. "That’s where we’re at right now. We are building and looking at what are now exposed weakness, and are building external controls around those.”
Jasper said examples of new controls include an internal anonymous reporting system and additional internal training programs.
