VALENTINE, Neb. - The Niobrara Council is responding to the Nebraska state auditor’s allegations of mishandling public funds. The nonprofit, which helps manage the Niobrara National Scenic River, is sending a letter to the auditor stating that it’s not a state agency and therefore not required to issue a statement of corrective action. However, the Council is making changes in response to the auditor’s concerns.

One modification involves revising Niobrara Council Executive Director Kalli Kieborz’s contract to allow her to have outside employment. Kieborz is an elected member of the Valentine City Council, a position that currently pays $2400 a year. According to the auditor’s report, Kieborz’s contract had barred her from “any other gainful employment.”

Additionally, the auditor's report noted that the two Niobrara Council employees received more than $7,500 last year in what he classified as improper bonuses. The Niobrara Council clarified that these payments were mislabeled and should have been categorized as retention payments or another classification.

“It was pointed out that tagging the payment as a bonus should not happen, but rather it could have been categorized as retention or something else,” the Niobrara Council letter reads.

State Auditor Mike Foley also criticized the Council for its delayed submission of annual reports to the Legislature, with some reports being filed up to three years late since 2016. The Council says all reports are now currently up-to-date.

Another issue raised by the auditor involves Keiborz’s compensation for unused vacation days, amounting to $39,919 since 2005. “This serious concern illustrates the Council’s need to implement a formal policy and review procedures for ensuring that leave records, such as timesheets, are properly maintained and reviewed by a second individual for all Council employees,” the audit report states. “Such exigency is made all the more pressing when, as in the case of the payments to the Executive Director for accrued but unused vacation leave, thousands of dollars could hang in the balance.”

The Council’s response indicated that while Kieborz, being a salaried employee, will not be required to fill out timesheets, she will maintain a detailed calendar and resume submitting a monthly activity report to the Council members.

Following the auditor's report, Niobrara National Scenic River Superintendent Susan Cook informed the board that her regional manager has requested a delay in signing a cooperative agreement that provides approximately $100,000 annually to the Niobrara Council. “He wants to thoroughly review the audit before any funds are transferred or agreements signed,” Cook said.

Council members expressed concerns about the financial impact of this decision. "We need to reevaluate our current budget and consider potential adjustments going forward," Council Member Mike Tuerk said.