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Nebraska auditor calls nonprofit's use of $142K in federal funds a "fiscal train wreck," citing widespread mismanagement and misuse.
Nebraska State Auditor Mike Foley declared the Karen Society of Nebraska a "fiscal train wreck and disgrace" after an audit found it likely misused over 99% of $142,752 in federal grant funds from July 2023 to December 2024.
The report revealed widespread issues, including unverified contractor payments, lack of documentation, and $23,544 paid for overlapping work hours while executive director James Knyawhtoo held a full-time tech job.
The nonprofit made mortgage payments on a Lincoln property owned by Knyawhtoo, transferred $18,900 to an unknown PayPal account, and conducted $14,649 in unexplained Western Union transactions.
Auditors found no board approvals, no tax filings, and Knyawhtoo ceased cooperating.
Foley referred the case to prosecutors, calling the misuse of funds a betrayal of taxpayer trust.
El auditor de Nebraska llama al uso sin fines de lucro de $142K en fondos federales un "desastre fiscal", citando mala administración y mal uso generalizados.