LINCOLN- In what was described as an "extraordinarily bold move," the Nebraska Department of Health and Human Services attempted to bypass the scrutiny of the Nebraska State Auditor by hiring its own "hand-picked" private accounting firm last year. State Auditor Mike Foley revealed the move during a public hearing on Tuesday concerning a bill seeking to clarify that the auditor is the "exclusive authority" in reviewing state spending.

DHHS and Foley have clashed in the past over the Auditor's often blunt and sometimes critical audits of the agency. Foley, testifying before the Legislature's Appropriations Committee, called last year's effort to replace his office's services "a direct assault upon the inherent constitutional authority" of his office.

A spokesman for the Department said the agency sought a Request for Information a year ago from private firms as part of its "due diligence to determine if other options may save taxpayer resources." Jeff Powell, the spokesman, said is costs the agency $830,000 each time the State Auditor conducts a federally required "Statewide Single Audit," which reviews the spending of federal dollars by state departments.

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