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OMAHA — The Douglas County Board on Thursday announced that it sees no allegations of criminal wrongdoing in a state auditor’s probe of a county program that serves the poor, despite the sheriff’s call for a law enforcement investigation.
Sheriff Aaron Hanson said in response that his investigation will go on.
He said he didn’t think the County Board’s statement fully addressed all concerns raised in the Sept. 22 report by State Auditor Mike Foley. Hanson contends his department has an obligation “to ensure that taxpayer dollars are not spent or distributed contrary to law.”
The County Board spoke in the wake of Hanson’s pledge last week that he’ll open an investigation into the county’s general assistance program for low-income residents. Sparking Hanson’s push was the Foley report, which flagged alleged and potential improper distribution and use of Dollar General gift cards intended for poor county residents. The review also highlighted high administrative costs, though the County Board has questioned the auditor’s calculations.
The County Board in its Thursday statement did not say whether it had communicated with Hanson on the matter. The sheriff is an elected official, as are the seven County Board members.
Led by Chairman Roger Garcia, the County Board said that based on information available from the state auditor review, it didn’t see any allegations of a crime.
Touching upon gift card problems, the board said the county is moving to stop its use of Dollar General gift cards, and is searching instead for a vendor that does not sell tobacco or alcohol, items that are off limits under county guidelines.
When the arrangement with Dollar General started, the vendor reportedly did not sell such prohibited items, and county officials said they thought the cards provided an “accessible, cost-effective way” to deliver aid to the target group, low-income county residents who aren’t eligible for other public assistance.
Foley said of participants’ gift card use: “Montego Menthol Silver and Gold cigarettes, Mike’s Harder Lemonade and Natty Daddy beer were popular choices.”
The County Board’s statement said “only 100” of the nearly 26,000 Dollar General cards distributed from 2023 through 2026 were reviewed by Foley’s team “due to specific red flags.”
Of that sample, the auditor said about 70% of usage was questionable, including about 10% alcohol and tobacco products and items such as food and toys that don’t meet the program’s parameters of clothing, hygiene or cleaning items.
Hanson said the County Board appears to admit that some gift cards were “impermissibly spent,” and he doesn’t think that should be overlooked.
Foley also criticized the county’s cost to run the program. He said the top three salaries among 18 people ranged from $166,614 to $105,000, and he contended that for every $100 of financial aid to the poor in a three-year period reviewed, the county spent roughly $74 on administrative expenses.
On that issue, the County Board said its ratio of administrative costs has improved from 78 cents per $1 of direct aid in fiscal year 2023 to 50 cents in fiscal year 2026. It said the county tracks costs per fiscal year, which does not align directly with the calendar-year periods used by the state auditor team, “making direct comparison difficult.” The board said it is seeking clarification from Foley on calculations.
More generally, the County Board said it views the Foley report as an opportunity to improve the general assistance program procedures to protect funds designated for county residents most in need. State law requires counties to have a department that aids the poor, and Douglas County provides help in the form of rent vouchers, cremation services and household items.
The board said it maintains “strong support” for the general assistance program, staff and services.
“Inevitably some will seek to abuse a public benefits program, whether at the federal, state or local level, but we have seen across decades that the vast majority simply need a helping hand while they gain stability and work toward self-sustainability,” the board statement said.
The County Board plans to affirm its statement as a board resolution during its weekly meeting next Tuesday.
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