State auditor report shows ‘unreasonable’ spending on dinners, travel by Nebraska Wheat Board

A new report from State Auditor Mike Foley shows the Nebraska Wheat Board reimbursed board members for dinner and travel purchases that the auditor’s office said “appear unreasonable.”

Fees paid to the Nebraska Wheat Board help fund the group’s activities. Each bushel of wheat marketed in the state is subject to .5% of net value when it’s sold.

“To ensure that funds are being spent in the best way, the board of directors oversees all expenditures,” according to the board’s website.

The auditor’s report detailed several receipts from restaurants such as Fleming’s Prime Steakhouse in Arizona, The Capital Grille in Washington D.C., and Mahogany Prime Steakhouse in Omaha. In the office’s report, auditors said the board’s purchasing card paid for a $408 meal that included steaks costing more than $50 each.

“The cost per person for this meal was $102.16, which would be 405.40% of the DAS per diem rate of $25.20 for dinner in Phoenix,” the report read. “Using the Board’s purchasing card rather than the expense reimbursement process caused the Board to pay $307.84 more than the amount that should have been reimbursed.”

Defending the purchase, the board’s executive director Royce Schaneman wrote, “Many of the restaurants in this area had prices over the GSA rate. We tried to find a restaurant that was less expensive than the hotel restaurant without going too far away which would have caused higher priced uber rides. We picked a restaurant that met the dietary needs of everyone in attendance.”

In follow-up responses, the auditor’s office said the hotel where board staff stayed had a restaurant that, “while also above the per diem rate, was less expensive than Fleming’s and would not have required additional transportation.”

The auditor’s report included a Google Maps review that shows restaurants in the same area as Fleming’s that were less expensive.

In another instance, the auditor’s report found that the board purchased a $1,150 group meal at The Drover restaurant in Omaha for an international trade team and members of Nebraska’s congressional staff. The meal cost around $88 per person, including Schaneman and his spouse. The auditor’s report said the board was not reimbursed for his spouse’s meal expense.

Another international trade-related dinner at Misty’s Steakhouse in Lincoln racked up a total of $941 for 15 people. The auditor’s office found that the private dinner cost about $62.75 per person, which the auditor’s office estimated was about 345% of the rate allowed to spend on a government employee’s meal.

In response to the auditor’s report, the Nebraska Wheat Board wrote, “We acknowledge the findings regarding group meal costs exceeding per diem guidelines. While the group meals in question are deemed reasonable use of the P-card, were justified official functions of the board – hosting trade teams, engaging stakeholders, and supporting strategic discussions – we understand the importance of adhering to established per diem guidelines. Moving forward, we will make every effort to stay within those rates whenever possible and will work to ensure our internal policies remain aligned with state requirements.”

The board defended its use of the purchasing card for private dinners since they “play a meaningful role in our outreach, education, and marketing efforts.”

The auditor also recommended the board review its reimbursements for travel-related expenses. The board reimbursed a parking garage fee of $176 when members traveled to Naples, Italy, to attend United Export Strategy meetings. The auditor’s office found it would’ve been more cost-effective to use economy parking instead of using a parking garage.

The board defended that decision, citing “security, time efficiency, weather protection and convenience” reasons.