The state Auditor of Public Accounts has issued a report Monday alleging the former executive director of the Rushville Housing Authority may have misused tens of thousands of dollars for personal benefit over a three-year period ending this past February.
Following allegations of financial improprieties involving Krystal Freeseman sent to their office, the APA audited the Authority’s financials and bank statements going back to January 1, 2021, finding $31,016.52 in possible fraud involving excessive payroll, unsupported reimbursements, a property tax payment and more.
In their report, APA auditors say records show Freeseman received $9,783 in wages more than what was reported to the IRS for the period, as well as 15 unsupported reimbursements totaling $8,214.17 which were unrelated to her wages.
The APA also claims Freeseman paid property taxes for her husband and herself in the amount of $1,388.46, apparently spent $2,612.36 for new flooring at her home, and made questionable payments to credit card companies and questionable use of the Authority’s credit card in the amounts of $7,297.98 and $1,692.93, respectively.
In addition, the report said while APA staff are not handwriting experts, Freeseman appeared to have forged the signature of another Authority-authorized signer on 22 checks totaling $17,618.32 for the excessive wages, unsupported reimbursements and two payments to vendors.
Auditors noted Freeseman did reimburse the Authority $13,179.26 in February 2024 at the time her employment was terminated, but the potentially unauthorized expenditure of public funds for her own personal benefit gave rise to concerns of potential violations of state law, and the report was being forwarded to the Nebraska State Patrol, Attorney General, Nebraska Accountability and Disclosure Commission and Sheridan County Attorney for further review.
Freeseman served as the Authority’s Executive Director from at least August 9, 2011, through February 6, 2024, as Authority representatives were unsure exactly when she started working in that position.
The report also admonished the Authority to take steps to tighten controls on financial activities and record-keeping.
