State Auditor Report Reveals Improper Use of FEMA Funds in Oak Creek- Under the Microscope, US

Oak Creek Township board members in Nebraska are facing allegations of misusing federal funds, according to a report released by the state auditor. The report claims that board members Eileen Rock, Jerome Kudlacek, and Rich Novacek used Federal Emergency Management Agency (FEMA) funds, intended for disaster relief, to give themselves bonuses. The township had requested these funds to reimburse expenses incurred during the 2019 floods, which caused significant damage in Nebraska, including to roads within Oak Creek Township. However, instead of directing the FEMA money towards its intended purpose, the board members allegedly used it for personal gain. State Auditor Mike Foley expressed his concern over the matter, calling it highly inappropriate. Foley discovered the alleged misuse of funds while reviewing the township’s audit waiver request. He emphasized that the board members were double reimbursed for expenses already covered by the township, and the FEMA funds should have been allocated to the township. The auditor also flagged a conflict of interest, as the board members had the power to vote themselves money. Foley hopes that the Nebraska Accountability and Disclosure Commission will require the board members to reimburse the funds. Wishing to emphasize the significance of federal funds, Foley stressed that they should be treated as public funds. The town treasurer, Jerome Kudlacek, claimed there was a misunderstanding and that they are working with the commission to rectify the situation. The state auditor’s report raises concerns about the handling of federal funds and highlights the importance of fiscal accountability in disaster relief efforts.