State auditor raises concerns over Omaha nonprofit’s $1.2 million grant

OMAHA, Neb. (WOWT) - Nebraska Auditor Mike Foley is raising concerns about an Omaha nonprofit’s job reporting and use of a $1.2 million recovery grant.

In a letter to the Nebraska Department of Economic Development, Foley said Nebraska Startup Academy had received $886,956.56 of the award from the North and South Omaha Recovery Grant Program as of July 31, 2026. His office’s findings came from preliminary planning work, not a full financial audit.

The academy projected it would help create and support about 60 startups and more than 300 full-time jobs over three years. Foley said its initial progress reports overstated job creation; amended reports showed two direct and two indirect jobs during 2024 and 2025. Those reports do not establish a final total for the three-year projection period.

The academy’s tax filings reported $813,966 in compensation for four personnel during those two years, according to the letter. The letter does not establish that all of the compensation came from the Omaha grant.

Foley also alleged the academy reported different revenue figures to the department and on its tax return, and failed to keep grant money separate from other funding.

He raised concerns about a potential conflict of interest, saying academy leaders also held positions with Move Venture Capital. Three startups supported by the academy appeared in the investment firm’s portfolio, according to auditors.

In its response included in the letter, the department said it would strengthen data verification and conflict-monitoring procedures and train staff to address grant noncompliance.

Read the letter below

--

Watch breaking news unfold on our livestream. Download the First Alert 6 streaming app to your TV or find us in your favorite streaming platform.