State auditor: Changes needed in county gravel purchase process

LINCOLN, Neb. – A representative of the Nebraska Auditor of Public Accounts has recommended that Red Willow County work with the county attorney to implement procedures for ensuring that purchases and contracts are awarded in compliance with statutory bidding requirements.

Craig Kubicek, Deputy Auditor for the State of Nebraska issued a letter to Red Willow County Board Chairman Earl McNutt Thursday which stated that a financial audit or attestation is unnecessary at this time, however, one issue merits corrective action.

The APA was alerted to concerns about the purchase of gravel in 2021 from Richards Gravel Pit Inc. From July to October 2021, four separate purchases of gravel from Richards totaled $27,459.

In June of 2021, the county had approved the purchase of gravel through a competitive bidding process from approved vendors Paulsen, EIA, and Southwest Gravel Products for 40,000 tons of gravel to be delivered between July 1, 2021, and June 30, 2022.

The minutes of the June 2021 commissioner’s meeting also indicated that “The Board accepted all bids and reserved the right to have a non-awarded supplier provide gravel at his bid price, if necessary.”

The auditor stated in his letter that Nebraska state statute does not permit the County to use a “non-awarded supplier” when bids are accepted. He further stated that the Board may use a “non-awarded supplier” only after having previously rejected the submitted bids.

At the June 6, 2022, Red Willow County Commissioner meeting, the board decided to table gravel bids for the 2022-23 year, which were to have been set on June 27. Commissioner Cayla Richards was absent from that meeting.

At the June 13, 2022 meeting under the consent agenda, the board approved $12,309.63 for Richards Brothers Ventures for gravel for the fairgrounds, with Cayla Richards abstaining.

Both Commissioners Earl McNutt and Cayla Richards were defeated in the primary election in May. Challengers Ted Gans and Charles Fritsche will run unopposed for the District 1 and 3 seats in November.