Omaha residents are watching a state‑level audit of the Nebraska Startup Academy, a nonprofit created in 2022 to help fledgling businesses in North and South Omaha. The organization received funding through the North and South Omaha Recovery Grant Program, a COVID‑19 recovery effort that allocated public money to spur economic growth.
According to a report released by State Auditor Mike Foley, the academy may have misused grant money and overstated its job‑creation results. Foley’s office found that nearly $900,000 of the grant came from the state and that a large portion of those funds was spent on payroll expenses. The auditor also said the nonprofit initially reported “dozens” of new jobs, but after reviewing the data the figure was revised repeatedly and now stands at about three jobs.
Foley raised additional concerns about a possible conflict of interest. He noted that workers at the academy accepted and transferred money from organizations where they held separate positions, and that individuals behind the academy have an economic interest in Move Venture Capital, a relationship he said was not disclosed on a tax return.
The Nebraska Startup Academy pushed back, saying Foley’s preliminary review does not establish intentional misuse of public funds or fraudulent conduct. In a statement, the nonprofit highlighted that its programs have built a statewide platform serving more than 750 entrepreneurs, including over 80 from North and South Omaha ZIP codes, over the past three years.
Foley emphasized that the audit comes as Nebraska faces a billion‑dollar budget shortfall, increasing scrutiny on programs that receive state funding. He suggested the nonprofit reevaluate its use of funds and implement changes to ensure future grant provisions are followed.
While the auditor concluded that no further audit was necessary, the differing pictures of the academy’s impact—Foley’s focus on documented job creation versus the academy’s claim of broad entrepreneurial support—leave lawmakers and taxpayers with unanswered questions.
What’s next: The Nebraska Startup Academy has said it will review the auditor’s findings and consider adjustments to its financial practices. State officials may monitor the nonprofit’s compliance with grant requirements as the state continues to address its budget challenges.
Sources: 3newsnow.com, ketv.com, ketv.com
