daugaard-npr-setting the record straight

7/29/2019 Daugaard-NPR-Setting the Record Straight

1/5

SettingtheRecordStraightTheFACTSaboutNationalPublicRadiosupcomingstory

Introduction

LauraSullivan,areporterforNationalPublicRadio(NPR),isworkingonastoryontheIndian

ChildWelfareActinSouthDakota.Sullivan,anativeofSanFrancisco,worksforWashington,DC-basedNPR.

EverystateofficialwhohasdealtwithSullivan,includingSecretaryofSocialServicesKim

Malsam-RysdonandGovernorsOfficePressSecretaryJoeKafka,hascharacterizedSullivanas

beingone-sidedandpredisposedtoaparticularposition,regardlessofthefacts.

Inadditiontootherinsinuations,SullivanismakingnumerousallegationsagainstGovernor

DennisDaugaardregardinghisyearsasExecutiveDirectorofChildrensHomeSocietyofSouth

Dakota.Eachoftheseallegationsdemonstratesacleardisregardforthefacts.(Thefulltextof

Sullivansemailisincludedattheendofthisdocument).

GovernorDaugaardbelievesstronglyinopennessandtransparencyingovernment,andhe

knowsthatafulldisclosureofallthefactswilldemonstratethatSullivansreportingisbasedon

incorrectinformation,half-truths,andanobviousdesiretocreateastoryratherthanreportthe

factsofthematter.

BeforeSullivanandNPRreleasetheirstory,GovernorDaugaardwouldliketobeforthcoming

withthefactssothateverySouthDakotanreporters,electedofficials,andvotersknowsthe

truth.AcopyofthisdocumentisalsobeingsenttoSullivanandhereditorsatNPRin

Washington,DC,sotheycanconsiderthefactsbeforetheygoforwardwithSullivansreport.

ThereisalonghistoryofcontractsbetweentheStateandChildrensHomeSocietytoprovide

servicesforchildren,beginningyearsbeforeGovernorDaugaardsassociationwithChildrens

HomeSociety.

DSShashadcontractswithChildrensHomeSocietygoingbackto1978,whenitwasfirst

licensedasaspecializedgrouptreatmenthome.Currently,ChildrensHomeSocietyislicensed

asapsychiatricresidentialtreatmentfacility(PRTF)forchildrenaged4to13.

AfterseveralyearsasavolunteersupporterofChildrensHomeSociety,andthenasafull-timefundraiserforChildrensHomeFoundation,DennisDaugaardbecameChiefOperatingOfficerin

2002.Heassumedthispositionasapartofaplannedtransitionaftertheannounced

retirementofformerExecutiveDirectorDavidLoving,whointendedtoretirein2003.

Accordingtothatplan,DaugaardassumedthepositionofExecutiveDirectorofChildrens

HomeSocietyuponLovingsretirementin2003.


2/5

Contractasapsychiatricresidentialtreatmentfacilityforchildren

Thereare11PRTFsinSouthDakotathatcontractwithDSS,andthreeoftheseareoperatedby

ChildrensHomeSociety.AnyprogramthatmeetsstateandfederallicensurecriteriaasaPRTF

canprovideservicestoDSSandreceiveastatecontractthatprovidesforuniform

reimbursementmethodsbasedonthenumberofchildrenservedforDSS.Thisisnotacasewherecontractorscompeteagainsteachotherforcontractsandisconsistentwithlaws

reviewedandpassedasrecentlyas2010.

AlthoughGovernorDaugaardcaresdeeplyaboutChildrensHomeSociety,hisplantobalance

thestatebudgetactuallycutreimbursementratestoallPRTFcontractors,includingChildrens

HomeSociety,by4.5percent.AssumingthatChildrensHomeSocietyservesthesamenumber

ofchildreninStateFiscalYear(SFY)2012thatitservesinSFY2011,thatamountstoacutof

$313,587.

PRIDE/Kinshipcontractfortrainingoffosterandadoptiveparents

DSSinitiatedthePRIDEcontractin1998toprovidetrainingforfosterandadoptivefamilies.A

requestforproposal(RFP)processwasusedin1998toselectanagencytoprovidethisservice

inSiouxFalls,andChildrensHomeSocietywastheonlyagencytosubmitaproposal.Inthe

yearsthatfollowed,thesizeofthecontractwasincreasedtoincludemoregeographicareas,

andaddingtheKinshipprogramin2003.In2010,DSSagainissuedapublicRFPforthe

contract,andChildrensHomeSocietywasonceagaintheonlyagencytosubmitaproposal.

ChildrensHomeSocietymanagesthePRIDE/Kinshipprogramonabreak-evenbasis,meaning

thatthesocietyonlyusesfundingfromtheprogramtoreimburseitsactualcosts.Ifactual

costsincurredbyChildrensHomeSocietyarelessthanthecontractamount,theexcess

fundingstayswiththestate.Asaconsequence,ChildrensHomeSocietydoesnotprofitfromthisprogram,whichoverthelastfiveyearshasaccountedforonlyabout4.5percentoftheir

annualbudget.

InasmallstatelikeSouthDakota,DSSofficialsareawareofwhetherthereareanyother

agenciesthatmightcompeteinanRFPprocess.Duringtheperiodinquestion,therewereno

othersuchagenciesinSouthDakota,whichiswhyinboth1998andin2010ChildrensHome

SocietywastheonlyagencythatrespondedtotheRFP.

Othercontracts

DSSalsocontractswithChildrensHomeSocietytoprovidetrainingandsupportforadoptivefamilies,andtotrainDSSChildProtectionServicesstaff.ChildrensHomeSocietyistheonly

agencyinSouthDakotathatispositionedtoprovidetheseservices,andtheawardingofthese

contractscomplieswithstatelaw.

DSSChildProtectiveServicescontractswithfiveagenciesinSouthDakotatoprovidetreatment

fostercareforchildrenwithsignificantemotionalorbehavioralneeds.Anylicensedagencyis


3/5

eligibletoprovidetheseservices,whicharereimbursedatauniformratebasedonchildren

servedperday.

NoneoftheDSSofficialsmentionedweresubordinatestoLt.GovernorDaugaardduring

theRoundsAdministration.

AslieutenantgovernorintheRoundsAdministration,Daugaardwasapart-timelieutenant

governor.Thishasbeenthetypicalarrangementformostofthestateslieutenantgovernors.

Likeastatelegislator,apart-timelieutenantgovernorservesduringthetwo-monthlegislative

session,buthasanotherfull-timejob.

Lt.GovernorDaugaardpresidedoverthesenate,offeredadvicetoGovernorRounds,and

occasionallyledspecialprojectsfortheGovernor.Hedidnotoverseeanypersonnel,andhad

nodirectinfluenceoverdecisionsmadebyDSSemployees.TheSecretaryofSocialServices

reporteddirectlytoGovernorRoundsandtohisChiefofStaff.

AlloftheinformationaboutChildrensHomeSocietycontractswaspubliclyavailable,

ChildrensHomeSocietywasaprominentproviderofservices,andGovernorDaugaards

positionwithChildrensHomeSocietywasverywell-publicized.

Allstatecontractsareavailabletoanymemberofthepublic,uponrequest.Inaddition,many

statecontractsareavailableonlineathttp://open.sd.gov.NPRreporterSullivanobtained

thesecontractsbysimplyaskingforthemfromthestateauditorsoffice.

GovernorDaugaardspositionwithChildrensHomeSocietyhasbeenwidelyreportedforyearsinnumerousnewsoutletsinSouthDakota.Thefollowingexamplesaretheresultofan

incompleteten-minutesearchoftheonlinearchivesofjustonesource,KELOLANDNews,which

goesbackadecade:

DaugaardisthechiefoperatingofficeroftheChildrensHomeSocietyofSouthDakota.RoundsAnnouncesRunningMate,KELOLANDNews,June19,2002

(http://www.keloland.com/NewsDetail6162.cfm?Id=18335)

DennisDaugaard,theexecutivedirectorofChildrensHomeSocietysaidFourteenMillionDollarDonation,KELOLANDNews,August6,2006


Thelieutenantgovernorisaformerstatelegislator,andiscurrentlytheexecutivedirectoroftheChildrensHomeSocietyofSouthDakota.DaugaardEncouragedbyCampaignResponse,KELOLANDNews,October30,2007


DaugaardseeshistimeastheexecutivedirectorofChildrensHomeSociety,aSiouxFallscharity,asanasset.DaugaardsTopPriority:EconomicDevelopment,KELOLAND

News,November1,2010(http://www.keloland.com/NewsDetail6162.cfm?Id=106606)


4/5

Inaddition,DaugaardsworkexperienceatChildrensHomeSocietywasafrequenttalking

pointduringhiscampaignforgovernorin2010,asdemonstratedintheNovember1,2010

KELOLANDNewsstory.DaugaardnotonlydiscussedhismanagementofChildrensHome

Societytodemonstratehisexperienceleadinganorganization,healsocitedthefactthat

ChildrensHomeSocietyisasignificantrecipientoffundingfromDSStodemonstratehis

understandingofMedicaidissues.

Inshort,DaugaardsworkatChildrensHomeSocietywasamajorpartofhiscampaign,whichis

whyitwasmentionedintwostatewidecampaigncommercials,eachofwhichranforweeks:

Ileftthebank,then,andjoinedChildrensHomeSociety,ahomeforabusedandneglectedchildren,andbecametheirexecutivedirector.DennisDaugaard,speakingin

aDaugaardforGovernorcampaigncommercialavailableat

http://www.youtube.com/watch?v=h78lAI2Msfk

DennishasbeenagreatleaderforChildrensHome.LindaMickelsonGraham,speakinginaDaugaardforGovernorcampaigncommercialavailableat

http://www.youtube.com/watch?v=B3m9pB4rVbY

Anyonewhowasengagedinpolitics,especiallyaformerstatelawmaker,musthavebeen

woefullyunder-informedifheorshewasunawarethatDaugaardwastheexecutivedirectorat

ChildrensHomeSociety.

Sullivansquestionsandreportingseemdesignedtocreatetheappearanceofaconflictof

interestwherenonepreviouslyexisted.Infact,thisconcernisstronglyrefutedbythefact

that,althoughallofthefactsarewidelyknownandwidelyavailable,theissuehasneverbeen

raisedbyanyofGovernorDaugaardspoliticalopponents,noranymemberoftheSouthDakota

press.

GovernorDaugaardhasruninfourstatewideelections:twiceforlieutenantgovernor,inafive-

wayRepublicanprimaryforGovernor,andina2010generalelectioncampaignthatincluded

manyvigorousattacksfromhisDemocraticopponent.Nooneinanycampaignorinthepress

haseverquestionedtheproprietyofDaugaardswidely-knownroleasExecutiveDirectorof

ChildrensHomeSociety.Infact,hisopponentsoftenpraisedhisworkforChildrensHome

Society.

BackgroundofLauraSullivansreportingmethods

Earlierthisyear,SullivaninterviewedSDSecretaryofSocialServicesKimMalsam-Rysdon.SecretaryMalsam-Rysdonsaidthatitwasthemostunfair,one-sidedinterviewshehadever

witnessed,andthatitwasveryclearthatMs.Sullivanhadhermindmadeup,nomatterthe

facts,aboutthisstory.

Asapartofherstory,SullivanwrotethefollowingemailtoGovernorsOfficePressSecretary

JoeKafkaonOctober4:


5/5

From:LauraSullivan

Sent:Tuesday,October04,20113:40PM

To:Kafka,Joe(GOV)

Subject:NPRinterviewrequest

Joe,

Justtofollowuponourphoneconversation,wewillbeairingastoryonfoster

careandtheIndianChildWelfareActinSouthDakotainafewweeks.Aspartof

that series, one story will focus very specifically on the role of Gov. Dennis

Daugaardinsecuringmillionsofdollarsinno-bidcontractsforChildrensHome

SocietywhilehewasalsoLt.Governor.

WehaveobtainedaseriesofcontractsfromthetimewhenMr.Daugaardwas

bothexecutivedirectorandLt.Governor.Onallofthem,Mr.Daugaardsignshis

nameExecutiveDirectorofChildrensHomeSociety,notLt.Governor,whilehis

subordinatesinstategovernment,includingDebBowman,VirgenaWieselerand

BrendaTidball-Zeltingersenthisorganizationmillionsofdollarswithoutbidsor

competition.Weunderstandthereareotherssignedbythethensecretaryofthe

DepartmentofCorrections.

IwouldliketoaskGov.DaugaardifhefeltitwasappropriateasLt.Governorto

givesuchcontractstoChildrensHomeandwhetherhefeelsthiswasinthebest

interestof tax payers orotherorganizationswhichmay have alsowanted to

competeforsuchcontracts.Iwouldalsoliketoaskhimifheisconcernedatall

thatintheveryleastthesecontractscouldpresenttheappearanceofaconflict

ofinterestorthatheusedhisinfluenceatLt.Governortosecurethemoneyforhisorganization.

WespokewithtwoformerlawmakerswhosaidtheywerenotawarethatGov.

Daugaard was a paid executive of Childrens Home. They thought he was an

unpaidboardmemberandsaidtheynowviewhisappearanceatappropriations

hearingswheresocialservicesfundingwasdiscussedasinappropriate.

We have also reached out to Virgena Wieseler and others named in the

contractsforcomment.

Thankyouforyourtime,Laura

PressSecretaryJoeKafka,awidely-respected29-yearveteranofTheAssociatedPresswith

impeccablecredentialsworkinginWashington,DCandinSouthDakota,addedthatItwas

apparentfromSullivansquestionsthatshewentintothisstorywithafixedpointofviewand

intendstoachievethatresult,withoutregardtothefacts.IthoughtNPRwasbetterthanthat.

daugaard-npr-setting the record straight

Documents