Douglas County sheriff plans to investigate county program for the poor

OMAHA — The Douglas County sheriff on Thursday announced that he will open an investigation into the practices of a county program designed to help the poor.

Sheriff Aaron Hanson said his intent is to ensure that taxpayer dollars have not been criminally spent. The move comes on the heels of a report by the State Auditor’s Office, which flagged alleged and potential improper distribution and use of gift cards intended for low-income county residents.

“We owe it, not only to every citizen in Douglas County, but especially to those this program is designed to assist, to ensure that hard earned property tax dollars are not being impermissibly or fraudulently misspent to the detriment of taxpayers and those who actually need the help this program is designed to provide,” Hanson wrote in a  media release.

Attached to Hanson’s media release was a letter addressed to Douglas County Board Chair Roger Garcia and Vice Chair Mike Friend. Referencing State Auditor Mike Foley’s findings, Hanson said he had consulted with Douglas County Attorney Don Kleine about the matter.

Nebraska auditor criticizes Douglas County’s ‘high’ cost to administer program for the poor

Both Hanson and Kleine are up for re-election in November. 

Hanson, in the letter, told Garcia and Friend that he had financial crime investigators in his office and would be “happy to assist” the county’s general assistance staff in vetting applications for potential fraud.

In addition to “problematic” distribution and use of Dollar General gift cards, Foley criticized the county’s general assistance office for high administrative costs, contending that for every $100 of financial aid to the poor in a three-year period, the county spent roughly $74 on administrative expenses. He said the top three salaries among 18 people ranged from $166,614 to $105,000.

Friend said county officials were analyzing Foley’s report. While he said he was concerned about the findings, he doesn’t think at this point that the matter merits a law enforcement investigation.

Melissa Sewick, director of the county’s general assistance program, has defended her team’s efforts to “responsibly” administer public assistance, which she said includes a range from determining eligibility to helping clients connect with other resources. She said, however, that county officials recognize the importance of efficiency, have made some changes and continue to evaluate their processes in light of the auditor report.

Garcia was out of town and deferred to a statement by the county’s chief administrative officer. In that, Patrick Bloomingdale said: “I will discuss the proposed investigation with the County Board in executive session next Tuesday.”

Hanson thanked county officials in advance for their cooperation in the investigation, which he said was likely to be complex.

The sheriff previously had  sent a letter Jan. 7 to Garcia, Friend, Bloomingdale, Kleine, Commissioner PJ Morgan and County Finance Director Lori Pirsch.

That letter talked about a “worthwhile concept of renewing the working relationship” between the county’s office that handles general assistance and the Sheriff’s Office. 

Hanson said that in the past, the two offices had worked “proactively together” to investigate fraudulent applications that he said resulted in inappropriate disbursements to people. That “interplay” steadily declined over the decade, the sheriff wrote. 

According to Hanson, the general assistance office sent 14 referrals to the sheriff between November 2020 and May 2021. Since May 2021, there have been no referrals, he said, adding: “I suspect the drop-off was the result of personnel changes in that office.”

Hanson’s Jan. 7 letter included a memo from Chief Deputy William Niemack, who told the sheriff that he would like to “examine the current status of criminal fraud against Douglas County, specifically regarding general assistance.”

Niemack wrote that the sheriff’s criminal investigation division was not yet at full capacity at that time, but was increasing to 10 investigators. He asserted that a past proactive partnership led to efficient use of funds and violators being held accountable.