SIOUX FALLS, S.D. -

A new federal report is criticizing the state's efforts to combat Medicaid fraud, finding that a key within South Dakota's Department of Social Services is understaffed.

The federal report says the state's Medicaid Fraud Control Unit, which is part of the attorney general's office, was generally in compliance with federal requirements. But federal officials determined that unit was getting few referrals of potential cases from the Social Services Department area that they argue is understaffed.

Sara Rabern, spokeswoman Attorney General Marty Jackley, says "the source of referrals is not important" to the Fraud Control Unit.

Medicaid is the health care program serving poor and disabled people.