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Once $4.5M in debt, disability service provider Duet updates county board on financial situation

Disability service provider Duet shared progress on reducing its debt from $4.5 million at Tuesday's Douglas County board meeting, while a law enforcement investigation into the cause continues.

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Once $4.5M in debt, Duet updates Douglas County board on financial situation

OMAHA, Neb. —

Disability service provider Duet, which serves five metro-area counties, updated the Douglas County Board on its financial recovery Tuesday.

Tiffany Malone, the agency’s director who started in December, said she inherited a financial mess she wasn’t expecting. She said Tuesday the organization is making progress.

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“We’ve had to do some things that I would not have expected to do within the first three to six months of a job,” Malone said. “But for Duet and the people we support, it’s worth doing what you can to make it work.”

Malone said Duet sold residential program properties it owned and began paying rent for the same spaces, which helped provide liquidity to pay down debts.

“It was seamless for the people we support and staff,” she said.

Duet has reduced expenses, she said, implemented reform measures introduced by the board in March, and restarted its stakeholder advisory committee.

The financial officer no longer works for Duet, Malone said. Duet partnered with an outside firm for financial management.

Board Chair Roger Garcia said he sees progress.

Garcia said the board’s March notice to terminate Duet’s contract in six months, unless stipulations were met, was not a reflection of the importance of the services provided.

Garcia expects the board will rescind that notice next week.

“We had to make sure that they knew we were serious. They needed to reform their financial management,” Garcia said.

Families served by Duet continue to seek answers about the organization’s financial troubles. Laura McCormick, whose sister Jennifer receives support from Duet, called into the meeting to express her concerns.

“I have no idea how the agency got itself millions of dollars in debt,” McCormick said.

Malone said the cause of the trouble is part of an ongoing law enforcement investigation, which she cannot discuss. She added that she hopes to better understand the details before committing to increased transparency and believes that will happen soon.

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