Lincoln, Neb. — Nebraska State Auditor Mike Foley has released an audit letter detailing more than $38,000 in improper credit card charges at Warren Memorial Hospital (Friend Community Healthcare System) in Friend, Nebraska.
The hospital is owned by the city of Friend.
The former CEO and CFO resigned after the audit flagged extensive questionable spending, including travel, entertainment, and golf expenses across multiple states.
The former administrator was not named in the release.
The letter questions hundreds of transactions, including thousands of dollars spent on golfing trips in Nebraska, Florida, Colorado, Nevada, Illinois, and Tennessee.
The findings have been forwarded to law enforcement. The former administrator is reportedly attempting to reimburse the hospital.
The audit indicated that the administrator attempted to deceive officials by falsely claiming a primary credit card was cancelled, when it was actually used alongside a second card to fund these expenses.
Nebraska statute criminalizes any willful obstruction or hindrance of an audit, examination, or
related activity by the Auditor of Public Accounts, as well as any attempt to mislead someone tasked with
carrying out those duties.
Foley’s office said the following are among the hundreds of questionable expenses revealed in the letter to have been incurred by the Hospital’s former chief executive:
- Travel and Lodging: United Airlines ticket upgrades, as well as extraordinary alcohol and room
service charges at a Ritz-Carlton hotel and elsewhere. - Retail and Subscriptions: Subscription streaming services (including YouTube TV and Hulu),
online marketplaces like eBay, and wholesale clubs or retailers such as Sam’s Club, Costco, and
Menards. - Local Services and Dining: Purchases at Dollar General, 402 Creamery Ice Cream Shop, Vic’s
Pizza, and Rocket Car Wash. - “It’s always infuriating to see public money being misused,” Foley remarked, “but depriving an
important medical facility of scarce funds – solely for extravagant personal aggrandizement – is especially disturbing.”
A full copy of the letter can be found at auditors.nebraska.gov.
