Nebraska Audit Alleges $1 Billion Accounting Error in Lancaster County

The Office of the Nebraska State Auditor released a report on September 15, 2026, alleging nearly $1 billion in accounting errors within the Lancaster County Treasurer’s Office. State Auditor Mike Foley characterized the discrepancies as the result of sloppy accounting practices, including duplicated collections and disbursements, rather than embezzlement. Specific findings include overpayments to the Lincoln Airport Authority and the City of Lincoln’s Property Tax Commission, alongside an estimated $1.27 million underpayment to the state in unused property tax credits from 2023 through 2025.

Lancaster County Treasurer Rachel Garver accepted responsibility for the oversights but disputed the billion-dollar figure. She stated the discrepancy was a reporting error in a semi-annual statement that counted income twice and asserted that the actual amount of over- and underpayments was approximately $3 million. Garver maintained that no taxpayer money was lost and that the errors have been reconciled. Christa Yoakum, chair of the Lancaster County Board, suggested the higher figure resulted from how funds are counted when moved from holding accounts.

The audit also identified issues in the Lancaster County Clerk’s Office, citing 128 instances where employees added 501 hours to the payroll system beyond time clock records. Auditors also found violations of remote work policies where supervisors claimed remote work while on vacation. County Clerk Matt Hansen defended the office's overall documentation but stated that recommendations for improvement are being implemented. Foley indicated that further audit work is forthcoming to ensure corrective measures are taken.