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Butler County supervisors reinstate Senior Center director on probation after investigation; termination motion fails
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Summary
After an HR investigation and an audit review that flagged undisclosed cash and recordkeeping issues tied to a $1,500 DHHS grant, the Butler County Board of Supervisors voted March 6, 2026, to reinstate Senior Center Director Diana McDonald on a one-year probation with a Performance Improvement Plan; a separate motion to terminate failed.
Butler County supervisors voted March 6, 2026, to reinstate Senior Center Director Diana McDonald on a one-year probation under a Performance Improvement Plan after an HR investigation and a state audit review raised questions about unreported cash and recordkeeping at the Butler County Senior Center. An earlier motion to terminate McDonald failed on a roll call vote.
The action followed an investigation that HR Director Aida Hickman said began Dec. 2, 2025, and reviewed interactions between Senior Center staff and Nebraska Auditor of Public Accounts auditors. Hickman told the board a Dec. 1, 2025 recorded phone call included language in which McDonald referenced using cash to bail an inmate; Hickman characterized the recording as demonstrating intent. Hickman also said a $1,500 grant from the Nebraska Department of Health and Human Services (DHHS), awarded in August 2024 with stated permitted uses, was not disclosed during an APA cash audit and that handwritten receipts were later produced showing purported distributions to five employees.
"Strict adherence to ethical standards must be maintained," Hickman said as she recommended termination, citing alleged falsification of personnel and cash-handling records, inconsistent recordkeeping, and misinformation provided to APA auditors.
McDonald, who has served as Senior Center Director for about ten years, denied using county funds for personal purposes and said she kept the $1,500 on hand intending to use it to buy a refrigerator with staff agreement. "I told (my) son that to get him off (my) back," McDonald said, addressing the recorded call. She acknowledged she should have handled the matter differently and said she had not previously received formal training for her role.
County Treasurer Karey Adamy told the board that when the five employees returned the $1,500 to the Senior Center it became county funds and should have been reported and processed through the County Treasurer's office. Hickman and other staff told supervisors that additional cash was found in McDonald’s desk after a Feb. 27, 2026 suspension and that the center lacked clear written procedures for receipts, donations, and cash handling.
In a divided vote, Supervisor Brad Vandenberg moved, seconded by Scot Griess, to terminate McDonald; only Vandenberg and Griess voted in favor, while Bob Coufal, Bauer, Tony Krafka and Chairman Scott Steager voted against, and the motion failed. The board then moved to reinstate McDonald on a one-year probation with a Performance Improvement Plan to be drafted by HR Director Hickman; that motion passed unanimously. The board also approved a motion to continue McDonald’s paid suspension until the PIP goals and review schedule are finalized.
Supporters of McDonald, including advisory board member Greg Janak and community members Dayle Ourada and Gladys Scofield, spoke during the meeting to vouch for her service and the Senior Center’s improved attendance. Supervisors and staff noted operational deficiencies beyond the cash issues, including missed two-hour NDOT refresher training for drivers, five county-paid tablets (at $140 per month) that were unused, and a 2024 van needing a lift or panel repairs.
Hickman recommended several administrative fixes: formal written procedures for all cash and donations, mandatory training for Senior Center employees and relevant Board members, and clear supervisory oversight with periodic audits. County Attorney Julie Reiter said she would research legal guidance on donated funds and bequests to clarify permitted uses.
The board set the next regular meeting for March 16, 2026. The March 6 minutes show the sequence of executive sessions, publicly stated investigation findings, and multiple formal motions recorded by roll call.
What happens next: HR will prepare the Performance Improvement Plan with specific goals, review intervals, and criteria for evaluating whether McDonald meets the terms of probation; McDonald will remain on paid suspension until those elements are in place, per the board vote.