The total amount of alleged misappropriations between October 2023 and November 2024 is around $14,000. State Auditor Mike Foley criticized the lack of oversight, noting that Logeman had nearly exclusive control over the financial operations of the nonprofit corporation overseeing the complex
Nebraska auditor alleges fraud affecting publicly-funded housing in Cuming County village
by Cindy Gonzalez, Nebraska Examiner
February 6, 2025
LINCOLN — A Nebraska auditor’s probe has uncovered alleged misuse of public money — including at the local WinnaVegas casino — by the manager of a publicly funded eight-apartment complex in Cuming County.
During her year as the sole employee of Barber’s Sunrise Villa Apartments in Bancroft, Neb., a town of fewer than 500 residents, the manager is alleged to have paid herself more than double her authorized salary, gaining an extra $11,000 over a 14-month period, according to findings released Thursday.
The 11-page auditor’s report identified the manager as Kayla Logeman. It said she also used the company debit card to make $820 in withdrawals at the casino resort in Sloan, Iowa and made a $27.51 fuel purchase at the nearby Pony Express gas station.
The auditing team’s report said it confirmed that Logeman’s “gambling activity” coincided with the withdrawals in question, and pointed to state theft laws that might have been violated. The auditors forwarded the findings to the Nebraska State Patrol, Attorney General and Cuming County Attorney for further review.
It also sent findings to the USDA, U.S. Internal Revenue Service and Nebraska Department of Revenue.
In all, the auditing team said Logeman’s alleged improprieties from October 2023 to November 2024 totaled about $14,000.
She has been placed on unpaid leave, said the report, which noted that the review was spurred by complaints of possible financial improprieties.
‘Recipe for disaster’
Nebraska State Auditor Mike Foley, in a statement, said the manager exercised “virtually exclusive control” over the corporate bank account and payroll expenses, despite having a board of directors.
“Entrusting the financial operations of an organization to one person alone, with no oversight, is a recipe for disaster,” Foley said.
The nonprofit corporation set up to oversee operations of the apartment complex is the Bancroft Betterment Corporation, established in 1992 and governed by a board of directors charged with financial accountability and oversight of the housing operation.
If there is anything lower than misappropriating public money meant to provide care for some of the most vulnerable members of our society, I don’t know what it could possibly be.
– State Auditor Mike Foley
In 1993, the corporation received a loan from the U.S. Department of Agriculture’s Rural Development Multifamily Housing Program, which aims to provide competitive financing for rental housing for low-income, elderly or disabled persons and their families. The loan, according to the auditing team, has an outstanding balance of about $214,500.
Said Foley: “If there is anything lower than misappropriating public money meant to provide care for some of the most vulnerable members of our society, I don’t know what it could possibly be. Unfortunately, that is what very well may have occurred here.”
According to the state auditing team, the Bancroft Betterment Corporation receives funding from rental revenue paid by tenants as well as any federal rental assistance for tenants in excess of the amounts owed to USDA Rural Development for the loan.
Board responds with fixes
The head of the nonprofit’s board declined to comment Thursday to the Nebraska Examiner. But the group responded, in the report, to the auditing team’s recommendations.
Auditor’s Office recommendations to the nonprofit included implementing procedures to prevent one person from being in a position “both to perpetuate and to conceal financial errors or irregularities.”
The board stated in the report that it had made several corrections, including removing all financial access and abilities from employees. It said only the four board members have access to banking privileges. The board also canceled any debit cards associated with its accounts.
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