Nebraska economic development director says some Omaha recovery grantees ignore reporting rules
At an Oct. 21 legislative hearing on the roughly $235 million North and South Omaha Recovery Grant Program, Director Maureen Larsen said grantees that skip reports and receipts are a main problem. Senators relayed grantee complaints about changing rules and staff turnover. Funds must be spent before Dec. 31, 2027.
Lincoln. The director of the Nebraska Department of Economic Development told lawmakers on Oct. 21 that one of her staff's biggest problems with the North and South Omaha Recovery Grant Program is grantees that "ghost" the agency and ignore its reporting and receipt requirements, the Nebraska Examiner reported.
Maureen Larsen spoke at a hearing of the Legislature's Economic Recovery Special Committee in Lincoln, where testimony was limited to invited department administrators. About 130 groups, from business leaders to lesser known entrepreneurs, were awarded grants from the roughly $235 million program in January 2024 for projects in some of the state's most distressed communities, according to the Examiner. The program was created by Legislative Bill 531, which Gov. Jim Pillen signed on June 6, 2023.
Complaints on both sides
State Sen. Terrell McKinney of North Omaha said grantees had told him that communication with department staff has been "problematic and causing issues," and that they faced "everchanging reporting requirements" and delays from staff turnover. He said he worried some capital projects would not be finished in time. State Sen. Margo Juarez of South Omaha said afterward that there appeared in some cases to be a communication gap on what is expected of grantees.
Ms. Larsen said she would look into specific complaints if lawmakers named the grantees, and acknowledged a high turnover rate in the department's Omaha office. She said the department is hiring and bringing in temporary workers. Some projects are effectively finished, she said, but none is officially closed, because funding was front loaded and the department is waiting on final documentation.
“We are working with past auditor findings. We are working with statutory requirements, rules, regulations and setting up best practices and policies for grant management.”
What the program requires
Under the department's program manual, grantees log each expense in its grants system with a supporting document, such as a receipt, invoice or timesheet, and proof of payment, and submit them each month. The department may reject or reduce a payment request when those reports are late. Performance reports are due within 15 days of the end of each reporting period, and records must be kept for five years after the money is spent or returned.
Funds must be spent before Dec. 31, 2027. The department may require grantees to return money not used for the program's purpose, and for material noncompliance it may withhold payments, suspend or end a grant, or require repayment. It has suspended the $5 million grant to Fallen Giant Films, a film venture, citing "significant noncompliance" in its financial management, the Examiner reported.
Ms. Larsen said that if projects are not finished by the deadline, lawmakers would likely decide what comes next.
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