AUDITOR SAY STATE AGENCIES HAD MILLIONS IN 'QUESTIONED' SPENDING OF FEDERAL FUNDS

LINCOLN- A new state audit examined how state agencies used the millions of dollars in pandemic-related funds and if the money was properly used. At least two state agencies disagreed with the audit’s findings and maintained that their spending was justified. “They’re big dollar items, and they should not happen,” said State Auditor Mike Foley on Friday.

$12 million of personnel costs shifted from the state to the feds to cover COVID-19 personnel costs incurred by the Nebraska Department of Corrections. Auditors said the long-standing staffing problem was not caused by Covid. Additionally, About $3.6 million in excessive administration costs were charged to a federal rent- and utility-assistance grant administered by the Nebraska Military Department.

The audit said the state received $158 million in pandemic aid to assist low-income families, of which most was funneled to local governments to spend. The firm, Deloitte & Touche, was hired to administrate the program, and was given up to $14.6 million to do that. The report noted that the state was allowed 10% for administrative costs, or about $6.2 million for the remaining state funds, but that about $9.7 million was spent.

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