An audit of Nebraska by the Federal government confirmed what State Auditor Mike Foley claimed all along. He says Nebraska received a letter from stating Nebraska must pay back nearly $22-million, Federal money spent between 2009 and 2012 when the Department of Health and Human Services tried to privatize child welfare services.
If Nebraska doesn’t repay the money within 30-days the state will be subject to annual interest expenses of over 10%. Foley says Nebraska can appeal the audit results but if the state loses that interest must be paid and that will cost taxpayers even more money.
The demand for repayment is to cover disallowed expenditures of $7,857,405 in fiscal 2012 and $14,099,650 in fiscal 2011. This repayment comes on the heels of a similar $3.2-million repayment from Nebraska in August of 2012. Nebraska initially appealed but withdrew and paid.
Foley stated he is not sure how the Department of Health and Human Services plans on handling situation.