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State audit finds operations deficiencies at Nebraska agency

LINCOLN, Neb. (AP) — A new Nebraska audit has uncovered serious flaws in the operations of a state agency that's key to the governor's goal of growing Nebraska's economy.

The audit, released Tuesday, says the Department of Economic Development spent millions of dollars on grants and contracts during 2015 without adequate documentation or monitoring. State Auditor Charlie Janssen couldn't confirm the money was used for appropriate reasons.

The audit also questions a more than $14,000 payment made in October as part of a settlement agreement with Brenda Hicks-Sorensen, who became the agency's director in February 2015 but was fired by Gov. Pete Ricketts in October.

Nebraska Department of Administrative Services attorneys say Hicks-Sorensen agreed to resign and waive all claims against the department in exchange for the payment.

Agency officials say they'll fully consider the finding and make appropriate reforms.

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