CONNECT 2 COMMENT EMAIL MORE The man accused of murdering his family and then setting fire to his home before taking his own life learned hours earlier that the state was not renewing a contract to administer federal education funds. The decision by the state Department of Education not to renew a $4.3 million contract with Mid-Central Educational Cooperative was made on Sept. Scott Westerhuis was the business manager for Mid-Central. Westerhuis is suspected of killing his wife, Nicole, and the couple’s four children, Kailey, Jaeci, Connor and Michael before taking his own life. Nicole also worked for Mid-Central. The bodies were found in the remains of the family home near Platte early in the morning of Sept. The decision by the state not to renew the contract with Mid-Central came after an audit last year found problems with documenting expenses related to a $4.3 million federal grant that Mid-Central had administered, according to Tony Venhuizen, the chief of staff to Gov.

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Dennis Daugaard. “It sounds like this year’s audit is going to show those same types of problems,” Venhuizen said. “They decided it was time to take this grant in a different direction.” The Mid-Central Educational Cooperative consists of a group of school districts that provides special education and regular education services to children. The group formed in 1978 to provide speech, language and hearing services before expanding its services.

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Mid-Central had administered a $4.3 million federal Gear Up grant. The grants are aimed at helping high-poverty middle and high school students prepare for a post-secondary education. Mid-Central’s contract to administer the grant ends at the end of the month, and the entity was informed Sept. 16 that it would not be renewed. Since fiscal year 2008, the cooperative received $11.1 million in direct federal funding and $19.1 million in other awards, according to federal spending data. The group also has had several other contracts with the South Dakota Department of Education independent of the Gear Up grant. The most recent state audit showed the entity had revenues of $9.2 million.

Mid-Central Superintendent Dan Guericke said he knew of no financial issues facing the couple and Westerhuis’ employment would not have been in jeopardy because of the loss of a state contract. “It would not have led to him losing his job,” Guericke said. Scott Swier, an attorney whose firm represents Mid-Central, said he had no reason to believe Scott Westerhuis committed any wrongdoing before the incident last week. Swier said both Scott and Nicole Westerhuis were still employees of Mid-Central at the time of the fire. He said he couldn’t comment further on personnel issues.

Mid-Central released a statement Tuesday. “Our thoughts and prayers are with the extended families of Scott and Nicole as they mourn the loss of children and grandchildren. We join the community of Platte as we grieve the loss of lives that will impact this community for the foreseeable future.” The Associated Press contributed to this report.

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Story continues below the photo gallery. Show Captions Community coping: The south-central town 100 miles west of Sioux Falls is. “Everyone’s primary concern is our kids,” Platte-Geddes school board member Tami Smit said Tuesday morning. Her two daughters, 10 and 13, were classmates of two of the Westerhuis children. Steven Frey, owner of Little Brick Ice Cream, spoke with Michael Westerhuis the day before he died. He said high school students have come to him for solace. Children remembered: The Platte-Geddes School District saying that it wants people to remember how the Westerhuis family lived, not died.