Megan Ornellas will serve as interim director of the Hoosier Lottery until a replacement can be found for Kathryn Densborn, who resigned following a flap over her lavish spending on a new headquarters.

Indiana Gov. Mitch Daniels' administration announced Ornellas' appointment Monday. Ornellas is the chief of staff for the Family and Social Services Administration, the state's largest agency. Ornellas will begin her duties Tuesday.

Densborn came under fire earlier this month following reports of lavish spending on the move to a 35,000-square-foot office that included a $25,000 workout gym.

Before becoming FSSA's chief of staff, Ornellas was the agency's chief financial officer.

Daniels Chief of Staff Earl Goode said the governor has set high standards for economy and appearances at the lottery, and he insists on "rigorous enforcement."