Nonprofit cites mounting costs, subcontractors reportedly not getting paid
RAPID CITY, S.D. – Meals on Wheels and other senior nutrition programs in seven western South Dakota communities are unexpectedly shuttering, prompting warnings from the state to its third-party vendor that it’s in breach of its contract.
The Department of Human Services has put Western SD Senior Services Inc. on notice that closures of meal programs in Timber Lake, Hot Springs, Dupree, Bison, Martin, Wall, and Faith could bring legal action and the loss of millions in public funds.
“(The department) will work to try to find alternate providers for these locations. But during any interim period, we must remind you of Western SD Senior Services Inc.’s contractual responsibility to provide continuity of services through the current contract period,” according to a letter sent by DHS Long-Term Services and Supports Director Heather Krzmarzick to Western SD Senior Services Inc. in late September, after the Rapid City-based Meals on Wheels provider notified the state of closures.
That some of the Meals on Wheels sites operated by Western SD Senior Services were shuttered prior to the state receiving any contractually obligated “requests to change or close nutrition sites” also constituted a breach of its contract, according to DHS.
“LTSS has not approved these requests, and that leads to the second major concern regarding contractual compliance, which is that Western SD Senior Services Inc. has not provided any written documentation explaining how continuity of services will be provided for the contract period,” Krzmarzick wrote in the two-page letter.
Western SD Senior Services is under contract with the state through September 2025 and received reimbursements from the state totaling $2,279,461 in fiscal year 2024.
First reported by the Timber Lake Topic, the nonprofit’s executive director, George Larson told the newspaper that closures are a result of mounting financial deficits and that efforts to bridge the gap with privately raised funds are underway.
According to the Topic, Larson said the agency needs to raise $55,000 in additional funding to continue operating the Timber Lake site alone for another year. The site was providing meals to 28-30 clients every Monday through Friday when it closed.
“We’re working on a plan now so seniors of the highest need can still receive meals,” he said. “But we need to get some commitments from communities and staff before we can put it in place.”
Sen. Ryan Maher told The Dakota Scout this week that he’s urging his colleagues on the Government Operations and Audit Committee (GOAC) to look into the matter after he received calls from Western SD Senior Services subcontractors — restaurants and food service businesses hired to prepare and deliver meals — complaining they haven’t been paid since as far back as December.
“I’ve turned this all over to GOAC and the auditor general, so we’ll see what comes of it,” he said. “But something’s not right; the numbers aren’t jiving.”
