Audit finds Nebraska Department of Labor overspent nearly $7 million

[Omaha Steve]

http://www.omaha.com/index.php?u_page=2798&u_sid=10351002

Published Thursday June 5, 2008
Audit finds Nebraska Department of Labor overspent nearly $7 million
BY MARTHA STODDARD
WORLD-HERALD BUREAU

LINCOLN — The Nebraska Department of Labor has spent nearly $7 million more than it received in federal grants during the past five years, according to a state audit released today.

State Auditor Mike Foley said the special audit by his office showed the overspending resulted from years of accounting errors. He blamed staff incompetence rather than fraudulent conduct.

"The accounting errors represent a complete meltdown in the agency’s fiscal reporting," he said.

The errors led senior officials at the Department of Labor to believe their federal spending matched the money authorized, Foley said. In fact, the department was spending an average of 3.5 percent more than they were allocated each year.

Foley said the errors affected 20 federal grant programs and make the state liable for repaying millions of dollars.