State Auditor Mike Foley says the Nebraska Department of Administrative Services failed to collect more than $60,000 that a Lincoln-based paper-recycling company owed to the agency.
Foley said Thursday that Shredding Solutions, Inc. should have paid a market-rate value for the paper, which it gathered from state offices, shredded, and sold for other uses. He says the agency received a flat rate of $25 per ton, even though the company was at times obligated to pay $55 to $100 per ton of paper.
Foley says his office's inquiries prompted an internal agency audit. The company repaid $27,000, but Foley says it still owes the state $33,000.
A man who answered the phone at Shredding Solutions, Inc., says the company will repay any money that is owed to the state.
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