The Niobrara National Scenic River. (Courtesy of NPS)

LINCOLN — Nebraska’s state auditor has questioned the handling of public funds by a small nonprofit that helps manage the Niobrara Scenic River corridor.

Among eyebrow-raising items described Wednesday by Auditor Mike Foley is nearly $40,000 in unused leave pay that went to a top executive who had a purported two-decade-long perfect attendance streak.

According to an audit of the Valentine-based Niobrara Council, executive director Kalli Kieborz had not recorded the use of a single day of sick or vacation leave during a 21-year period. As compensation for that unused leave, over time she reportedly received nearly $40,000.

Foley, however, noted Facebook posts from earlier this year that he said depicted Kieborz  ice-fishing at Valentine Refuge Lake during what appeared to be normal business hours. 

Said Foley: “Even a baseball hall of fame great like Baltimore Orioles shortstop Cal Ripkin, Jr., known as the ‘Iron Man,’ could compile a record of only 17 years without missing a game — and he rested during the off-season!”

The audit team said it received citizen complaints that the Niobrara Council office had been closed without explanation during working hours — ”allegations that, if true, cast further doubt upon the already dubious proposition that the executive director managed incredibly to eschew any type of work leave for more than 21 years.”

Improper bonuses

The audit and a related media release laid out other alleged misuse of funds by the nonprofit, along with recommendations on tightening procedures. 

Created by the Nebraska Legislature in 1998, the 16-member Niobrara Council is charged with managing and protecting the Niobrara corridor in conjunction with the National Park Service. Made up of various county commissioners and natural resources experts, the council gets administrative and accounting support from the Nebraska Game and Parks Commission.

The council has only two paid employees, the audit team said: the executive director and the education manager.

Combined, the pair reportedly received more than $7,500 last year in what the auditing team described as improper bonuses. Paid with state and federal funds, the bonuses reportedly violated federal regulations and were questionable under state law prohibiting gratuitous payments when no extra work has been performed.

Among other findings in the 23-page audit report, which focused on 2023:

• A $500 payment made to the executive director’s sister last year for conducting eight river user counts fell short of required bidding procedures and created the appearance of a conflict of interest. 

• The council since 2016 reportedly failed to submit timely annual reports to the Legislature, as required by state law. Auditors said some tardy annual reports were filed between one and three years later without explanation.

• The executive director was overpaid reportedly more than $1,800 for health insurance reimbursements that lacked support documentation or for which she was not entitled.

• The executive director was an elected member of the Valentine City Council, despite a contract that barred her from “any other gainful employment” without documented council authorization. According to the auditors, Kieborz’s contract requires that she “devote her entire time and energy to the furtherance of the business” of the Niobrara Council. She reportedly did not get appropriate permission to serve the past dozen years as a Valentine council member, a position that currently pays $2,400 a year.

Council pledges ‘closer examination’ of findings

A reporter’s calls to the Niobrara Council and its representatives were not immediately answered Wednesday.

The Niobrara Council did include a general and brief written response in the audit report.

It said that the council decided by consensus that each item in the report will receive closer examination by council committees that have expertise in the respective area.

The council said it hopes to have solutions and recommended action after its August public board meeting.

“Although we are not providing line item comments to the report at this time, we would like it noted that we take the comments and recommendations very seriously and that is the reason the committees have been assigned,” the council wrote.

Foley said the situation illustrates that “large and small entities alike are at risk for mishandling public funds.”

He added, “No matter an organization’s size, proper oversight is always needed to safeguard the citizens’ tax dollars.”

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