Douglas County votes to notify Duet it may withdraw unless financial controls are met

The Douglas County Board of Commissioners on March 31 approved a resolution giving formal notice that the county may withdraw from its interlocal agreement supporting Duet unless the provider meets specified financial‑management and governance conditions. The measure passed 6–1, with Commissioner Borgeson voting no.

Chair (S1) framed the item as time‑sensitive because the interlocal requires notice by April 1 to preserve the county’s option to exit in future fiscal years. County attorney Don Klein (S20) told the board he has asked the Nebraska state auditor’s office to consider conducting a financial audit of Duet after questions were raised about the provider’s accounting and historic operations.

Tiffany Malone (S17), Duet’s recently appointed executive director, told commissioners she found the agency in “significant financial turmoil” after taking the post about four months ago: cash reserves were low, payroll continuity was fragile, and the agency had relied on stopgap measures such as staff reductions and sale‑leaseback transactions. Malone said those emergency moves provided short‑term liquidity but increased long‑term liabilities and that Duet needs unrestricted operating capital and time to implement governance, audit and financial reforms.

Commissioners pressed for details about the allegations and investigation. Several members said the resolution’s purpose is to require Duet to produce the books and a plan for financial stability; Commissioner Friend (S11) said the board needs the books so it can determine whether missteps occurred and whether mitigation is possible. Commissioner Borgeson (S9) proposed an amendment to reword the resolution so the county’s "intent is to remain" if contingencies are met; the amendment failed 2–5 after legal staff warned a termination notice is required by contract deadlines to preserve the option to withdraw.

Public commenters and guardians urged caution. Several relatives and guardians described Duet’s services as essential for medically fragile residents and said withdrawing support would be devastating; others demanded accountability and answers about alleged misappropriation and large prior deficits. Duet staff and its CFO, John Burns (S22), described mitigation steps already taken and urged commissioners to allow the organization time to implement reforms.

The final resolution, as adopted, gives Duet six months to meet the conditions the county set for financial reporting, governance changes and external audits; it also directs county attorneys to coordinate with the state auditor and seek forensic review as needed. The board removed a separate paragraph that would have lowered funding in the short term; by striking that clause, the board left current funding levels to be handled through the normal budget process.

What happens next: the county attorney will work with the state auditor to determine whether a formal audit will proceed and on what timetable, and the board will review Duet’s progress and documentation over the next six months before deciding whether to withdraw from the interlocal. The board’s vote preserves a legal option to pull funding later while also signaling support for reforms and continuity of services if conditions are met.