Auditor's report sparks debate over Douglas County assistance program

OMAHA, Neb. — A new report from the Nebraska State Auditor is raising concerns about how taxpayer-funded assistance dollars were spent through Douglas County’s General Assistance Program, prompting calls for reform and a sheriff’s investigation.

The program is designed to help low-income Douglas County residents meet basic needs. Assistance is distributed through Dollar General gift cards that are intended to be used only for hygiene-related purchases.

However, State Auditor Mike Foley said a random review of 100 gift cards found many were used to buy items outside the program’s approved guidelines, including toys, pet food, alcohol and tobacco products.

According to the audit, nearly 70% of the sampled cards showed improper purchases.

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Critics of the program say the findings suggest a larger problem.

“He only audited 100 gift cards, and they found hundreds of dollars misspent,” said Doug Kagan of Nebraska Taxpayers for Freedom. “If they had done a complete audit of thousands of gift cards, you would have found that thousands and thousands of dollars were misused.”

In response to the findings, the state auditor requested that Douglas County Sheriff Aaron Hanson investigate the program.

“We need to determine, is this just gross mismanagement on the part of the County or was this intentional fraud ... or a little bit of both?” Hanson said.

County officials, however, pushed back against characterizations that the program should be eliminated.

Members of the Douglas County Board of Commissioners acknowledged the need for improvements and stronger oversight, but emphasized the importance of maintaining assistance for residents experiencing poverty.

“Being on this Board, you see poverty every day,” Commissioner Brian Fahey said. “You see how hard the poorest people in Douglas County live. You ask yourself why with the resources we have as a City and a County allow people to exist in this condition at all?”

Despite the audit findings, the Board of Commissioners reaffirmed its support for the General Assistance Program and the safety-net services it provides.

Sheriff Hanson said his investigation is already underway. County officials said the review could take several months before conclusions are reached.

The audit and subsequent investigation are expected to shape future discussions about how Douglas County administers emergency assistance programs while ensuring taxpayer dollars are spent as intended.

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