An audit by the state comptroller and inspector general shows a former food services director for the state corrections system falsified documents, cheating state taxpayers out of nearly $500,000. Our Erin Connolly reports.

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An audit released Tuesday by state watchdogs alleges Howard Dean, who worked at the Oneida Correctional Facility, defrauded taxpayers to the tune of $500,000. The report says it happened over a 17-year period and managers simply looked the other way.

Comptroller Tom DiNapoli said, ''It's unacceptable that some of the individuals responsible for our correctional system deliberately disregarded the rules and New York's taxpayers.''

The report states Dean falsified a number of documents that his supervisors knew were improper. He also submitted false time sheets claiming he worked on Fridays, when in fact he hasn't worked a Friday since 1992.

DiNapoli said, ''This certainly gives new meaning to the term casual Friday. In this case he not only dressed down he didn't even bother to show up on Fridays.''

And these fraudulent activities came right out of taxpayers' pockets. Dean cost us almost $230,000 for taking Fridays off, improper travel reimbursements of over $200,000, and inappropriate use of state vehicles, gas and tolls of about $30,000. The rest of the half a million came from things like falsified claims for hotels and meals.

DiNapoli said, ''It is outrageous, and people should feel outraged by this kind of abuse in the system.''

Fisch said, ''He was so arrogant and brazen that he also falsely claimed and received reimbursement for 75 nights he did not stay at a hotel.''

DiNapoli adds those who acted inappropriately should be held accountable and there should be an effort to recoup some of the money lost. The case has been handed over to the Oneida County District Attorney for his review.

Oneida County District Attorney Scott McNamara said, ''Basically what we have to decide now is if there is someone we would prosecute or how many people we would prosecute.''

A second audit is now being conducted by the state comptroller's office to find out if the alleged fraud is more widespread. As the director, Howard Dean's salary was about $110,000. He retired in 2008 and now collects a pension near $60,000 a year.

We reached out to officials at the Department of Correctional Services.

Spokesman Erik Kriss said, "While management may have looked the other way in the past, that stopped when Commissioner Brian Fischer took over the Department in 2007. He revoked Mr. Dean's travel status and changed Mr. Dean's official workstation as soon as he was made aware of those arrangements. Commissioner Fischer is working hard to change any culture of acquiescence that may have existed at this agency.''