Nebraska
NE audit of DHHS child care subsidy program exposes as much as $12.8M in improper payments • Nebraska Examiner
LINCOLN — A new probe of Nebraska’s child care assistance program has uncovered what the state auditor calls rampant abuses that led to as much as $12.8 million in improper payments to child care providers.
A 33-page audit released Tuesday looked at a sample of nearly $93 million in federal and state funds spent by the Nebraska Department of Health and Human Services on child care subsidies during a nine-month period starting in July 2023.
State Auditor Mike Foley said his team found that some providers took advantage of the state’s “lax oversight” of billings submitted through the Nebraska Family Online Client User System (NFOCUS).
He said offending providers were “startlingly successful” in bilking DHHS out of payments in excess of those to which they were entitled. The public agency subsidizes child care centers and home care providers on a sliding scale basis for the care of children from low-income families.
“Some of the spurious billings were so wildly excessive that one wonders whether anyone at DHHS took even the most cursory glance at them before authorizing their payment,” Foley said.
Millions in billings were at least “inordinately inflated” by various providers, he said, and may be “outright fraudulent.”
‘People tiptoe a little’
Overall, Foley said, it appeared that invoices to the NFOCUS system were routinely processed and paid with little, if any, meaningful oversight. Foley said the audit reflects a “classic problem” in cases of financial abuse.
“People tiptoe a little, fudge the number and nobody says anything. Then it gets bigger and bigger and bigger,” he said.
Among examples of improper billing cited by the audit team:
- DHHS at times paid double and triple billings for the same child during the same period of service. In one instance, a provider billed and was paid by the agency a “toddler” rate for a child and then again, for that same child, a preschool rate for the same two weeks during February. The audit team cited another child care provider for 13 instances of similar multiple billings.
- Billings were processed and paid for child care services supposedly provided to 210 children on Thanksgiving Day 2023, when the child care centers were not even open for business.
- Some child care providers billed for more days than were in the month covered. For instance, Foley said in a news release, one provider billed DHHS and was paid for 168 partial days of service during February, yet only 29 partial days would have been possible. Another provider billed DHHS and was paid for 120 partial days of service during January when only 31 billing days would have been possible. In another situation, the provider billed and was paid for 40 full days of service and 78 partial days in a single month.

The audit covers July 2023 through March 2024, and the sampling of cases reviewed found $328,997 in questionable costs due to various regulation violations, including claims not agreeing with attendance records and parents’ employment that did not appear to meet a requirement for economic self-sufficiency.
With the dollar error rate for the random sample being 13.85%, the team estimated potential dollars at risk, or loss, for the audit period to be $12.87 million.
The auditing team provided DHHS managers opportunity to review and respond to its comments and recommendations, and an agency response is included in the report.
DHHS also released a media statement, saying it agrees with the audit findings and has started processes to recoup funds questioned in the audit.
‘Tireless efforts’ appreciated, CEO says
It also said that an investigation already is underway for one of the providers noted in the audit.
DHHS said that its practices include “internal targeted high-risk reviews” of provider invoices. When a review identifies billed units that exceed authorization, the agency can refer the matter to its fraud unit and can recover full or partial payments. Child care providers also are trained, and refreshed, on billing procedures.
CEO Steve Corsi said that he appreciated Foley’s “tireless efforts to safeguard taxpayer dollars.”
Corsi said that since being appointed as DHHS’ top administrator less than a year ago, the agency’s primary focus has been to put in place effective guards to ensure taxpayer dollars are allocated properly.
“These efforts will be continued aggressively,” Corsi said. “We look forward to the ongoing collaboration with the State Auditor’s Office.”
Foley said that discussions with Corsi left him confident that problems would be fixed.
That is where they’re dropping the ball. They go in after the fact and spot check — but not very thoroughly.
– Mike Foley, Nebraska state auditor
As noted in the audit, Nebraska’s child care subsidy program uses state and federal funds to assist qualified families with the cost of child care. Applicants must meet requirements, including income eligibility, outlined in federal Child Care and Development Block Grant regulations.
Financial help is available on a sliding fee scale to eligible families according to a child’s age and special needs. If a family requests a child care subsidy to facilitate a parent’s employment, the family is required to document that the subsidy helps them retain a job that leads to economic self-sufficiency.
Wrong rates, overlapping times, no attendance logs
The audit released Tuesday delved into payments made to providers who submitted billings through the NFOCUS system.
Providers are supposed to keep detailed attendance logs for children, and the government subsidy is generally granted on a partial- or full-day basis up to a maximum of 60 hours a week.
Among other examples of improper billings that Foley and the audit team said violated administrative requirements that are to be enforced by DHHS:
- Numerous provider billings exceeded the allowable rate for the child. Generally, child care rates for infants and toddlers are higher than those for older, preschool-aged kids. The audit team found 690 instances of DHHS paying rates that exceeded what was allowed based on age.
- Some providers failed to reduce billings by the amounts of the co-payments made by families served, resulting in overpayments by DHHS.
- Provider billings were found to overlap with times when the child already was being cared for by another provider.
- Billings were made for times with little or no attendance log information to document the presence of the child.
- Providers billed for families whose low work pay, according to the audit team, could not have given the family the self-sufficiency required to receive subsidies for employment purposes.
- Billings were paid to providers that had exceeded their licensed capacity.
- One owner operating two separate centers under two different licenses billed DHHS for a partial day of service for six children at each location, even though less than five hours of service in total was provided. Of the six kids, one received only a single hour of service at each location, but the owner billed and was paid for two partial days of service.
Foley said in an interview the crux of the problem is that DHHS “spot checks” cases after providers plug the billing information into the online system used for the child care subsidy program.
He said the NFOCUS system is not set up to audit and relies on human oversight.
“That is where they’re dropping the ball,” Foley said of DHHS workers. “They go in after the fact and spot check — but not very thoroughly.”
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Nebraska
In a first for Nebraska, federal judge awards attorney’s fees to immigrant who was detained without bond hearing
For the first time, a federal judge in Nebraska has awarded court costs and attorney’s fees to an immigrant who prevailed in a lawsuit challenging his detention without bond.
Senior U.S. District Court Judge John Gerrard, an appointee of former President Barack Obama, issued the ruling on Tuesday and awarded $1,535.23 to Edgar Eduardo Cadillo Salazar. Gerrard had previously ruled that Salazar’s detention at the Cass County Jail without bond was unconstitutional and ordered the government to provide him with a bond hearing or release him from custody.
Under the federal Equal Access to Justice Act, individuals and businesses that prevail in civil lawsuits against the federal government can file a motion to hold the government liable for attorney’s fees and court costs. Judges can order the government to cover those costs unless they find that the government’s position was “substantially justified,” or if “special circumstances make an award unjust.”
Before last summer, when the Department of Homeland Security revised its longstanding interpretation of statute, only immigrants who were encountered at the border or other ports of entry were subject to mandatory detention. Immigrants encountered after residing in the U.S. were typically subject to discretionary detention and eligible for a bond hearing.
The new interpretation has led to detention without bond for tens of thousands of immigrants who would have previously been eligible to bond out – and it’s led to an endless stream of wrongful detention lawsuits in Nebraska and around the country. A Reuters investigation found that federal courts have ruled against the mandatory detention policy more than 4,400 times.
In Gerrard’s order granting Salazar’s request for attorney’s fees, he said the government’s position that all undocumented immigrants are ineligible for bond hearings was not substantially justified.
“This ‘new understanding’ of a decades-old statute has resulted in the government detaining hundreds of thousands of nonviolent individuals, often without due process or other constitutional protections,” Gerrard wrote. “It has also sparked thousands of lawsuits where courts have ordered release of those wrongfully detained, for which neither immigration courts nor the Department of Justice have seemed prepared.”
He continued: “The government has not provided any justification, let alone a substantial one, for its radical departure from the historical treatment of noncitizens who entered the United States without inspection. Its arguments rely purely on statutory interpretation; the government apparently expects it can transform an entire area of administrative law because it unilaterally decided that, for thirty years, everyone was wrong about what a statute meant.”
Salazar was later denied bond by an immigration judge and remains in custody, according to his attorney, Alexander Smith.
Two similar motions were denied last month by U.S. District Court Judge Susan Bazis, an appointee of former President Joe Biden. In both cases, Bazis had ruled in favor of the detained immigrants, and they were later released on bond per her orders. But in her opinions denying attorney’s fees under the EAJA, she found that the government’s position on mandatory detention was “substantially justified.”
“The Court cannot say that the Federal Respondents’ pre-litigation decision to treat [the respondent] as being subject to mandatory detention, while not ultimately correct in this Court’s view, lacked a reasonable basis in law or fact,” Bazis wrote in a footnote of her opinions.
The issue of mandatory detention is currently under consideration by the 8th Circuit Court of Appeals, which covers Nebraska and other Midwest states. In oral arguments last month, the appellate court’s conservative judges appeared friendly to the mandatory detention policy.
Nebraska
‘Best we’ve played all year.’ Trent Perry scores 20 points as UCLA routs No. 9 Nebraska
The UCLA men’s basketball team made Senior Night one to savor Tuesday, dominating No. 9 Nebraska 72-52 at Pauley Pavilion for its 20th victory of the season and third over a top-10 ranked opponent.
The Bruins improved to 20-10 overall and 12-7 in the Big Ten with one regular season game remaining, Saturday at crosstown rival USC.
Trent Perry scored 20 points, Eric Dailey Jr. had 14 and three players — Tyler Bilodeau, Skyy Clark and Xavier Booker — each added eight points.
“Nebraska’s got a great team,” UCLA coach Mick Cronin said. “This is the best we’ve played all year — they brought out the best in us. We went from our worst defensive effort to our best. They outhustle everyone they play, but not us. Tonight we were great, but I love the way they play. If we had their attitude we’d have their record.”
Eric Freeny had four points, five rebounds and three steals in 18 minutes for UCLA, which got 26 points in the paint and 17 second-chance points.
“Effort is what it takes to win in March,” Freeny said. “It was our last home game. Coach keeps on pushing me to be better everyday.”
Sam Hoiberg had 12 points to lead Nebraska, but Pryce Sandfort, who began the game leading the conference in three-pointers made per game, was held to nine points.
“Sandford has been unbelievable so to hold him to nine points is amazing,” Cronin said. “Brandon Williams was the unsung hero.”
Williams had six points and three rebounds in 12 minutes off the bench.
The Bruins were in control from the opening tip-off and never trailed the Cornhuskers (25-5, 14-5). UCLA improved to 10-3 in all-time against Nebraska and the win greatly strengthened its resume for the NCAA tournament as the Bruins also beat then-No. 4 Purdue 69-67 on Jan. 20 and then-No. 10 Illinois 95-94 in overtime on Feb. 21 on Donovan Dent’s layup with one second left.
“We have to take attitude we came with tonight, bottle it up and take it on the road,” Dailey Jr. said. “We’ve got so much left. The season’s not over… we’re only as good as our last game. It’s all about how you respond. I love the fight that we played with tonight.”
This is the fifth time in Cronin’s seven seasons that the Bruins have won 20 or more games. They are 17-1 at home (their only loss in overtime to Indiana on Jan. 31).
“Since I’ve been here we don’t lose much at home.” Cronin said.
UCLA went ahead by 15 points, 37-22, on Perry’s three-pointer with 2:41 left and led 37-24 at intermission. The Bruins shot 50% from the field in the first half (15 for 30) while Nebraska was only 31% (nine for 29).
The Bruins increased their advantage to 18 points on Dailey’s dunk less than five minutes into the second half and the visitors got no closer than nine the rest of the way.
Prior to pregame introductions the Bruins honored seniors Bilodeau, Dent and Clark; fifth-year player Jamar Brown; redshirt seniors Steven Jamerson II, Jack Seidler and Anthony Peoples Jr; and redshirt junior Evan Manjikian. In a media timeout, midway through the first half, former coach Jim Harrick (who led UCLA to its 11th national championship in 1995) was honored and got a loud ovation.
“I’m happy for our seniors, I didn’t want them to lose their last game at Pauley,” said Perry, who reversed a subpar performance at Minnesota, where he was 0-for-7 from the field with one rebound and one assist in 26 minutes. “I had to come out here tonight and bounce back for my team. I play for something bigger than myself and I’m fortunate to have the type of guys I do around me.”
UCLA guard Skyy Clark looks to pass while under pressure from Nebraska guard Sam Hoiberg and forward Berke Buyuktuncel in the second half.
(William Liang / Associated Press)
Over the last four games, Dent has 46 assists and just two turnovers.
Bilodeau has scored in double figures in 26 of 28 games played, totaling 20 points or more nine times.
Dailey moved to within five points of reaching the 1,000-career point milestone.
UCLA has now made at least one three-pointer in 887 of 888 games dating to February 2000.
“We had one practice this week, that’s it,” Cronin said. “We watched film, had a heart-to-heart talk and a shoot around today but that’s it.”
Nebraska
4.1-magnitude earthquake hits south-central Nebraska
People across Nebraska and Kansas reported feeling an earthquake Sunday afternoon.
According to the U.S. Geological Survey, a quake measuring 4.1 on the Richter Scale struck around 1 p.m. about 3 miles east of the Webster County village of Cowles, which is in south-central Nebraska near the Kansas border.
A quake of that magnitude is considered “light” and not likely to cause damage.
But the USGS received dozens of reports from people who said they felt the quake, some as far away as Omaha and Manhattan, Kansas. Numerous people took to social media to report feeling the quake.
Two aftershocks of 2.6 magnitude later occurred near the original quake site, one about 90 minutes after the initial quake and one later Sunday night.
Earthquakes are relatively rare in Nebraska, but the state does usually record one or two minor ones per year. The last time Nebraska recorded a quake of a magnitude 4 or above was in December 2023, also in Webster County.
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