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Nebraska auditor finds calling stirring the pot

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By NATE JENKINS / The Associated Press

Sunday, Jun 29, 2008 - 05:19:19 pm CDT

LINCOLN, Neb. — The easygoing banter stops and State Auditor Mike Foley’s voice breaks into a high pitch that’s equal parts disbelief and anger.

It’s like taking a hard foul from a preacher in a pickup basketball game: You didn’t know he had it in him, and you can’t help but grin.

“We find a guy making $800,000 a year, and his tax return is in the HHS (state Health and Human Services) file, so it’s not like they didn’t know. He owns two motor homes, a $300,000 house in Omaha, and yet his child is receiving free services from the state. How is that possible?”

Story Photo
Nebraska State Auditor Mike Foley talks about recent investigations during an interview Friday, June 20, 2007, in his office at the Nebraska State Capitol in Lincoln, Neb. Foley, a former state senator, was elected to the office in November 2006. (AP)

Foley was recalling an audit late last year that revealed state workers were reducing or writing off bills of some state patients without first verifying whether they had the financial wherewithal to pay. It was one of several Foley audits that has grabbed headlines since he became auditor just 1 1/2 years ago.

State auditors have sometimes been the supporting actors among Nebraska’s six statewide elected officials, doing important work but not occupying center stage.

Not so with Foley. The tall, thin New York native had a reputation as a quietly diligent lawmaker mainly focused on anti-abortion issues during his six years in the Legislature.

But since being elected state auditor in 2006 he seems to have found his true calling, regularly stirring the political pot with high-profile audit findings and breathing fire when he discloses them. Foley says it’s the best job he’s ever had and that it’s drawing some latent, obsessive tendencies out of his 54-year-old bones.

“The first few months I thought, ’This job is going to be so easy.“’ Foley said. “Because with this talented staff, all I gotta do is show up, and they’re going to do the work, and I’m going to sign the reports and I’m going to go home and be with my family and my other life. But now as I get deeper and deeper into this, I’m thinking about these cases all the time, I’m working on them at home.

“You just get intrigued.”

Earlier this month he released an audit that showed an Omaha business with a large state contract to take care of autistic people had inflated employee time sheets, double-billed, spent nearly $20,000 on home improvements, $14,000 on meals, and thousands more on shopping sprees.

Foley seemed genuinely offended and surprised when explaining that the business hired attorneys he said tried to hide information from his office. Such tactics, he said, motivate him to “take people apart.”

Last week, the two top executives of the Autism Center of Nebraska were fired.

News conferences where he unleashes his office’s latest findings of government corruption have turned into major news events. A local Lincoln radio station has taken to calling him “Super Foley.”

“I’m convinced the only way to fix things in government is to make it public,” he said.

He ran for auditor thinking it would be a good fit with his education and background in finance — previous jobs include corporate planning analyst for Nebraska Public Power District and director of financial analysis for the National Association of Regulatory Utilities. Foley also had an itch to dig deeper into issues he was only able to “scratch the surface of” while a state senator.

There is some sniping that Foley has raised his profile by picking sensational topics, then publicizing audit findings with pithy sound bites that play well with the media and public.

Sometimes he shows his wife his prepared comments lambasting state agencies and other audit targets. He asks her, “’Am I going over the edge here?“’

“I don’t like beating up on people. ... I think some people have that perception.”

But he clearly likes the political scene.

Thirty years ago as a student at Michigan State University, Foley got Beltway fever as an intern for a congressman and liked the Washington scene so much he thought he’d never leave.

But he fell in love with a Nebraska native, decided Washington wasn’t the best place to raise a family, and left for Lincoln. Just three years later he was elected to the Legislature, in 2000.

Keeping tabs on his six children is his hobby. And he says the recent spotlight hasn’t caused him to consider other political opportunities.

He says he would be “stunned” if he didn’t run for another term as auditor.

Foley says he has a great rapport with Gov. Dave Heineman, who he said supports his audits.

“When I told him about some of the stuff we were finding at the Autism Center, he said ’Mike, this crap has got to stop.“’

Are some state employees blind to the source of their paychecks and the money they handle at their jobs?

“I want to stress it’s a minority, but they’re there. And they have control over the money in many cases, they’re spending money like drunken sailors and they’ve simply forgotten where the money comes from.”


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hmm..... wrote on June 29, 2008 6:52 pm:
" You could try asking him if he has an interest in running for higher office? "

sic em wrote on June 29, 2008 6:59 pm:
" Go Mke, go! Great atory by Nate Jenkins. "

Great story wrote on June 29, 2008 8:29 pm:
" But how do you contact him to report fraud? "

mom wrote on June 29, 2008 9:28 pm:
" Foley-- Look into the State Foster Care Review Board. "

Mike wrote on June 29, 2008 10:16 pm:
" Wow, he is actually doing his job. What an amazing guy. If I recall, a lot of the major things, like the autism thing, were brought to his attention by whistleblowers, not as a part of their regular audit duties. "

We Need More Foleys wrote on June 29, 2008 10:37 pm:
" Man, this guy is good. How can anyone be displeased with his service as Auditor???? "

Tom wrote on June 29, 2008 10:54 pm:
" He needs to look at Att.Gen.'s office. Lots of money being spent, not much action. "

The Good Doctor wrote on June 29, 2008 11:07 pm:
" Our State Watchdog is actually a Glory Hound. He's more interested in good press conferences than good government. "

klumpy wrote on June 30, 2008 6:57 am:
" Mr. Foley serves this state admirably. It is good that he does not suffer from "if you don't have anything nice to say, don't say anything at all" complex that most of us have. "

New to LIncoln wrote on June 30, 2008 7:52 am:
" Great job Mike, Next you need to look at LPS you will find a bunch of wasted money there. "

dr wrote on June 30, 2008 8:01 am:
" nice job keep up the good work. the only people that should be mad at Mike are the people that are crooks anyway. "

Good doctor wrote on June 30, 2008 8:19 am:
" Mike must be after the "good doctor". Got get em Mike. They have been stealing from taxpayers way too long! "

Outside the Box wrote on June 30, 2008 8:50 am:
" A couple of random observations on this story:

-It's interesting how he says he thought he could "show up and sign reports". Thankfully he's doing more than that - or we would need to audit his office.
-Sure Foley likes to get his name in the paper, but compared to other elected officials (Bruning), Mr. Foley is making a positive difference for taxpayers.
-I wonder how many people who laud Foley's accomplishments will continue to knock Scott Kleeb for being a carpetbagger. . . Who cares how these talented people got here, if they want to serve our state, we should let them. "

Lisa wrote on June 30, 2008 9:09 am:
" 800,000 a year in Nebraska?? - sounds like his paycheck is government corruption. Why wouldn't he like a job making 800,000 IN NEBRASKA "

Snowflake wrote on June 30, 2008 9:30 am:
" Thank you, Mike Foley. You are doing a great job at watching our tax dollars. Let's find more fraud and nail them. "

uh . . . wrote on June 30, 2008 9:32 am:
" The $800K income was someone who was duping HHS into providing free services for a child. I don't think the state auditor makes more than $100K per year. "

Re Lisa wrote on June 30, 2008 9:46 am:
" Foley doesn't make $800,000 per year. He was commenting on an audit his office did about some guy in Omaha that makes 800k per year and is receiving some state welfare benefits. I must admit that the article was poorly written in that reguard, and I had to reread it to figure out that paragraph too. Foley is doing a great job, keep up the good work. Make sure to look into the public schools if you can Mike, tons and tons of wasted money there. "

Grain of Salt wrote on June 30, 2008 11:59 am:
" Mike Foley would do equally well to recognize that there are some state agencies in Nebraska who actually exceed tax appropriation expectations. Instead, he grandstands on all the negative stuff, and seems free to intersperse his personal opinions without rebuttal or fact finding--a fault carried forth by media reporting with inadequate followup.

While Foley may be doing a good job, a leader of his ilk should be able to offer solutions, not just pour boiling oil on people and departments who may be doing all they can with very little support. It doesn't mean they are bad stewards of tax dollars each and every time. Sometimes the opposite is true.

The state accounting system is overly complex, even mysterious at times. The state offers little if no training for these complexities, and does not have sufficient tax support in the low-staffed and overworked accounting department to fill the void. This is where the real criminal deficiency is. This department needs more help! For Foley to grandstand on this deficiency often depicts dedicated workers who must put up with this defunct system, as incompetent when in fact, they are not.

For example: Foley's staff's audit of the women's commission was inconclusive, defammatory, and inflammatory and neglected to mention the fraudulent behavior of pro-life appointees who registered for expensive seminars and didn't show up, and then bought themselves four individual laptop computers after the commission was effectively destroyed.

It's easy to criticize, but it is more admirable to find solutions. I recommend that many of Foley's outrageous accusations be taken with a grain of salt. Maybe he could concentrate next on how to improve and fix the system. "

Glad your in Office wrote on June 30, 2008 12:39 pm:
" Wow!! Were have you been. We need you to clean up this system. Keep up the good work. We have a lot more that needs to be checked out. "

Alan wrote on June 30, 2008 12:59 pm:
" I'm all for Foley's audits. Public humiliation may be the only sanction that will get some government employees to play by the rules they expect the rest of us to obey. If the rules are too complex, fix them! If some of these people were in the private sector they would not be looking for new jobs, they would be looking through bars. "

Curious wrote on June 30, 2008 1:58 pm:
" How about Mr. Foley and his staff checking out all the Nebraska government contracts that aren't awarded to the lowest bidder? I've seen plenty of qualified companies tossed out so that the usual "in-crowd" bidders can keep lapping up the bids and wasting our tax dollars. It's all there in black and white. Does anyone in local or state government care about this at all? "

We need more like this wrote on June 30, 2008 2:12 pm:
" To report fraud, waste, or misuse go to the Auditor's website there is a form that you can fill out online (anonymously), a telephone number, or you can send a letter in the mail.

http://www.auditors.state.ne.us/index_htmlpage=content/sae_unit/sae_form.html


Hotline Numbers:
Lincoln: 471-3686
Outside of Lincoln: (1-800-842-8348)

Auditor of Public Accounts
State Capitol, Suite 2303
P.O. Box 98917
Lincoln, NE 68509-8917

Your complaint/concern will be investigated by the SAE Unit of the Nebraska Auditor of Public Accounts' Office. SAE conducts evaluations and audits of reported State and local government waste, fraud, and misuse. To help us do our job, please provide all relevant facts such as date; time; person involved; location and vehicle plate number, if applicable. All complaints and/or concerns will be reviewed and responded to by SAE staff.

All complainants names are considered confidential information by this office. Not all complaints and/or concerns are founded. Providing accurate information to disgruntled taxpayers to correct misperceptions is just as important to us as eliminating fraud and waste. However, these tips/calls have uncovered several major embezzlements, fraud, misuse, and waste.


Foley is just the kind of person we need in government. Everyone talks about the need to change government to make it work for the people, but the majority of politicians get into office and only end up working for other politicians and lobbyists. Foley is not doing that. He is working for the people to ensure that the money that we pay in taxes is being used for the purpose in which it was intended. He is not making friends in government. Other governmental agencies and politicians will end up hating him. But if the people (voters) are smart they will elect more just like him. Thanks Foley!!! "

Another Mom wrote on June 30, 2008 5:04 pm:
" Keep up the great work Mr Foley! "

State Employee wrote on June 30, 2008 5:45 pm:
" As a state employee I am glad Foley is doing such a bang-up job. With increasing costs and the need to hold taxes low so all citizens can keep hard earned money in our own pockets, because we are taxpayer's too. A good, knowledgeable watch-dog is exactly what the state needs. The people who are abusing the systems need to be rooted out and exposed.
The Auditor's office also helps agencies improve and refine their processes so there is less waste and so agencies can be as streamlined to follow the rules -- often confusing-- set forth by the legislature. "

I just heard wrote on June 30, 2008 7:36 pm:
" that Mike Foley is not able to audit the dept. of roads. Is this true? Why can't he go into that wasteland? "

state employee also wrote on June 30, 2008 8:07 pm:
" who has dealt with the auditors numerous times. They might give you some recommendations, but sometimes their recommendations are unreasonable and cost the taxpayer more money to implement their recommendations. Maybe one time, he could say "Hey, we just came from this agency and they had a great report." Doesn't hurt to recognize a job well done...instead of just trashing on good employees who try to do what the senators put into law. "

Foley Poley Poo wrote on July 1, 2008 7:05 am:
" “I’m convinced the only way to fix things in government is to make it public,” he said. And so many of you rubes think government is for the public, by the public. I'll kneel in front of the greatness of Foley when he attacks a REAL demon, i.e., something that can possibly provide political pain for the Gov or Big Business.....until that time, he's knocking over straw men. "

John O wrote on July 1, 2008 7:14 am:
" Foley is the only public official I have ever seen who calls a news conference to say he is going to have a news conference. Talk about grandstanding! He really have to wonder what his intentions are...and I do not think they are very pure in the long run. "

Bill wrote on July 1, 2008 8:05 am:
" I cannot believe there are people griping about Foley's media attention here. Are you kidding me?! These people would somehow find negativity in anything. I feel embarrassed for them. Go Mike, you are restoring the people's faith in their leaders. "

Nina wrote on July 1, 2008 11:57 am:
" A kindred spirit - I, too, like to 'stir the pot' to see that those without power are cared for, and those with power do the right thing. Auditor Foley is doing a great job, accomplishing what we Nebraskans are paying him to do. What an enviable position - a whistleblower who is in charge of it all! "

DOC wrote on July 1, 2008 9:57 pm:
" Okay Class, which way do you want it? A do nothing auditor or one that does something and has news conferences? How does the IRS keep people in line? An occasional blip in the paper about someone that is going up the river for awhile for tax fraud. The auditor is using the same "evil" methods. Is his way perfect? Are his methods perfect? Does he miss some departments? Please get ready to throw the first stone? Oh, where did you go? "