Omaha, Nebraska – State Auditor Mike Foley has formally questioned the use of a $1.2 million grant awarded through the North and South Omaha Recovery Grant Program to the Nebraska Startup Academy, a nonprofit launched in 2022 to grow the state’s startup ecosystem.
Auditor’s concerns
In a letter to the Nebraska Department of Economic Development (DED), Foley alleges that the Academy’s financial reporting was inaccurate and that the majority of the grant was diverted to internal personnel rather than the projects outlined in its mission statement.
According to Foley’s findings, $813,966 – roughly 68 % of the total award – was paid to four Academy staff members, including the executive director, the director of entrepreneurship, and two board members, during 2024 and 2025.
Unmet promises
The grant application projected the creation of 60 new businesses and more than 300 full‑time jobs within three years. Foley asks, “Where are all those promised startups and new jobs?” He notes that the Academy reported only two direct jobs and one indirect job in 2024, plus one indirect job in 2025.
Foley also points out a discrepancy in the Academy’s reported revenue. The nonprofit claimed 2024 revenue of $183,952.83, yet its tax return shows $770,633 for the same year.
Academy’s response
The Nebraska Startup Academy has not yet issued a public statement responding to the auditor’s letter. The organization’s website continues to emphasize its goal of establishing Nebraska as a Midwest innovation hub, but no detailed accounting of grant expenditures has been posted.
Implications for state funding
Foley’s letter underscores the importance of transparency and accountability for state‑funded programs, especially those aimed at economic development. The Department of Economic Development is expected to review the auditor’s findings and determine whether corrective action or repayment is required.
Stakeholders in Omaha’s business community have expressed concern that the controversy could affect future grant opportunities for local nonprofits. “We need to ensure that taxpayer dollars are used to create real jobs and new companies, not just to cover salaries,” said a local chamber of commerce representative.
Next steps
The auditor’s office will continue its investigation, and the DED has indicated it will work with both parties to resolve the matter. Residents and entrepreneurs awaiting the promised startup support are encouraged to monitor updates from the auditor’s office and the Department of Economic Development.
Original reporting: KLKN-TV – News, Weather and Sports for Lincoln, Nebraska — read the source article.
