Nebraska State Auditor Mike Foley’s office recently completed an audit of the Material Division of the Department of Administrative Services and he found a number of deficient accounting practices.
Foley says auditors found a nearly $14-million contract for photocopying equipment was apparently given to the wrong bidder. Auditors also found a $3-million-plus contract with the Omaha Paper Company was entered into the system as having total estimated expenditures of just under $11-million. Auditors also found a nearly $9-million contract for road oil used in construction was awarded after only two bids were taken. State law requires three. Other errors include four former Department of Administrative Services employees received a paycheck they didn’t earn and overpayments for unearned holiday pay, retirement and health insurance premiums were paid out but not recovered by the department.
Foley says the ball is now in the Department of Administrative Services court and they need to clean up their procedures. The state will conduct another audit in about a year to check their progress.