Agency Responses to Audit Recommendations

Previous Audit Recommendations			Agency Updates as of July 2026
Audit Report	ID	Recommendation	Current Status	Description of Current Status
Department of Administration
Reviewing Available Options for Acquiring State Office Space (2025)	1	The Department of Administration should create detailed instructions about how finance staff need to compile and calculate costs to operate state-owned buildings and about how to calculate the state lease rate.	In Progress	For the FY 28/29 rate setting process, the Department of Administration – Office of Financial Management has utilized the Apptio platform to standardize rate setting and provide documented justification of yearly building rent rates and monumental surcharge. Agency use codes assigned to operating expense transactions in SMART were used to identify cost pools for the two rates. Rate per square foot was then calculated using total square footage of state-owned and leased office space. The Apptio platform enables OFM to project expected revenue and target rates to optimize year-end fund balance. An enablement guide is being created to provide detailed instructions on use of Apptio. This pilot approach will be monitored over the next budget cycle. If this approach is validated, OFM will establish formal policy documenting both the logic and process used to calculate rates.
Department of Commerce
Evaluating the STAR Bonds Financing Program (2024)	1	The Department of Commerce should define its quality-of-life goals for STAR bond districts and measure whether districts meet these goals.	Have Implemented	The agency has defined three quality of life goals that each STAR Bond project should meet. In each project plan approval letters include details regarding how the project will meet those goals. This information will be shared in the STAR Bond annual report.
Evaluating Whether the Department of Commerce’s Economic Development Transparency Database Includes the Required Information and Functionality (2024)	1	The Department of Commerce should ensure that the transparency database contains all statutorily required programs and information. If there is any information that cannot be measured or included, the department should include an explanation on the database for why that information does not appear.	Will Not Implement
Evaluating the Adequacy of the Department of Commerce’s Pre-Employment Screening (2024)	1	Commerce should strengthen their process for checking the backgrounds of applicants applying for jobs that oversee financial matters in accordance with EEOC best practices.	Have Implemented	Through the Cybersecurity statute (KSA 75-7236-7243). It limits background checks to employees who are involved in the collection, maintenance or access to personal information. This appears to be IT and fiscal folks and maybe a handful of program managers. The agency desires broader authority to include leadership and employees with access to financial and funding related programs., the agency can conduct background checks on potential future employees who would fill leadership positions. The agency will again work on this in the 2027 session to broad this authority since the tightened timeline and lack of interest from the legislature did not provide for real movement of this legislative fix.
	2	Commerce should use their available templates to create interview notes, reference check summaries, and internet search summaries and retain those documents in accordance with the state’s retention policy for personnel files to ensure Commerce can justify hiring decisions if they’re questioned in the future.	Have Implemented	The agency is currently utilizing standardized templates to document interview notes, reference check summaries and internet search reviews. These records are maintained in digital format and stored within the online archive system.
Evaluating the Alternative Fuel and Community Service Tax Credits (2024)	1	The Department of Commerce should clearly and completely document how it determines the basic eligibility of proposed projects as well as how it determines the final list of projects to award community service tax credits.	Have Implemented	Commerce now follows a standardize operating procedure to ensure transparency in awarding grants, including Community Service Program (CSP) tax credits. Project eligibility is confirmed and documented by the program manager before the review process. Eligibility determinations are based on statutory requirements and clearly stated in the program guidelines. The Department requires all reviewers to disclose and avoid conflicts of interest and maintains records of reviewer comments and scores. Final project selections are based on documented evaluation criteria, reviewer assessments, and a thorough review process led by the program manager to verify accuracy and consistency in scoring.
Ford County
Reviewing Ford County’s Ballot Reconciliation Process During the 2024 Primary Election (2024)	1	The Ford County election officer should ensure that poll workers follow procedures for reconciling the number of ballots cast with poll books check-ins on election day according to statute.	Have Implemented	The county updated training manuals and went over check-in sheets with workers.
Reviewing Ford County’s Ballot Reconciliation Process During the 2022 General Election (2024)	1	The Ford County election officer should continue working with the Secretary of State s office to revise and develop forms and policies to improve election security processes.	Have Implemented	The county always follows SOS updates and relays that information to board workers.
Reviewing Ford County’s Ballot Reconciliation Process During the 2024 General Election (2025)	1	The Ford County election officer should strengthen poll working training about the importance of obtaining all voters’ signatures in the poll books.	Have Implemented	I have implemented and always updating training practices.
	2	The Ford County election officer should develop a process or checklist to ensure election workers check tabulation machines for ballots after election day and the final canvass.	Have Implemented	I have improved check lists and training on how to use them.
Reviewing Ford County’s Tabulation Machine Testing Process During the 2024 General Election (2025)	1	The Ford County election officer should develop a process or checklist and strengthen its training to ensure they identify and resolve errors found during pre-election testing and post-election testing of its tabulation machines.	Have Implemented	I have done check list and go over them with the testers to let them know what is needed.
Kansas Department of Education
Evaluating Adult Virtual School Funding (2025)	1	The Central Plains school district should review all transcripts each year with Graduation Alliance to ensure accurate transcripts.	Have Implemented	At the beginning of every month our team at USD 112 meet to go through transcripts. We make sure that they meet all requirements to receive a USD 112 diploma. During this time we well communicate/meet with graduation alliance to make sure all classes and transcripts are accurate. We are currently planning end of the year meetings to discuss all the yearly transcripts moving forward.
	2	KSDE officials should create a written policy and procedure manual that incorporates the rules the department intends to apply when reviewing adult virtual education credits. The department should ensure those policies do not inadvertently restrict or limit statutorily compliant credits from being funded.	Have Implemented	KSDE has written policies and procedures for auditing adult virtual education credits. The KSDE Enrollment Handbook is the written policy manual adopted by the state board and it includes the rules that KSDE applies when auditing virtual credits claimed for students aged 20 and older.
	3	KSDE should incorporate general audit practices such as supervisory review and appropriate audit documentation into their written policies for adult virtual school funding audits.	Have Implemented	KSDE has a process for supervisory review of audits with documentation.
	4	Once the department has created a written policy and procedure manual for adult virtual school funding audits, officials should train all audit staff to ensure that department policies are consistently followed.	Have Implemented	All KSDE auditors are thoroughly trained in all KSDE audit polices and procedures.
Kansas State Department of Education and Select School Districts
Evaluating Access Controls of District Accounting Systems (2025)	1	We recommend that the Kansas State Department of Education develop resources such as policy templates and provide routine guidance to school districts related to accounting system access controls, specifically in the 3 categories of account management, identity management, and user limits controls.	In Progress	The KSDE IT Department is in the final stages of drafting a Cybersecurity Implementation Guide for school districts. The guidance is based on the NIST Cybersecurity Framework 2.0 and will be presented to district at the KSDE Great Ideas Conference in July of 2026.
	2	We recommend that the 20 districts in our selection implement security practices related to accounting system access controls, specifically in the 3 categories of account management, identity management, and user limits controls and codify those practices in written policy.	Have Implemented	4 of the 20 selected school districts reported they have implemented our recommendation.
			In Progress	15 of the 20 selected school districts reported they are in the process of implementing our recommendation.
			Will Not Implement	1 of the 20 selected school district reported they would not implement our recommendation.
Osawatomie State Hospital
Evaluating Staff Safety at Osawatomie State Hospital (2024)	1	To ensure staff have clear expectations regarding physical security and processes, Osawatomie State Hospital management should develop and regularly review, update, and clarify policies. This includes areas we noted in the report such as: Security staff patrol processes and documentation, Security staff fire training, Key return for departing staff, and Progressive Discipline.	In Progress	The City of Osawatomie Fire Department is now under contract to respond to fire alarms at Osawatomie State Hospital through an automated notification system which meets applicable State Fire Code requirements. Additionally, Safety and Security staff have received training on patrol procedures, building checks, and documentation requirements with related policies, procedures, and forms updated to improve consistency in patrol activities, documentation practices, supervisory oversight, and accountability. The hospital has also updated LD-4.3 Key Control Policy and is actively working with Johnson Controls to modernize the facility’s access control and key card management system. This initiative will allow patient care areas to be secured primarily through electronic access controls, enabling key cards to be activated or deactivated immediately regardless of whether a physical card is returned to the facility. Of the four patient care buildings on campus, one currently has a fully functioning electronic access control system. Two buildings have identified hardware deficiencies which require replacement, while one building continues to experience significant access control issues that are actively being investigated and troubleshooted. Additionally, the software maintenance and support contract for the access control system expired in 2024. OSH is working to obtain a new contract with the vendor who maintains state equipment in order to fix the identified hardware deficiencies. That contract is currently in the IT security review phase and we look forward to it s execution and addressing the issue.
	2	Osawatomie State Hospital should regularly review, update, and clarify existing policies to ensure policies and practices align. This includes areas we noted in the report such as: Personal security alarm checks, Communication of safety assessment reports, and Safety concerns form.	Have Implemented	Policies are reviewed by the policy owner annually to ensure the practice and policy align. Policies are reviewed and approved by committees every two years unless otherwise noted. Personal alarm checks are conducted monthly by our Safety Coordinator. The Safety Concern Form was implemented and updated in May 2025. Any comments submitted are reported quarterly to the Administrative Executive Committee.
	3	As part of Osawatomie State Hospital’s policy review and updating, management should develop data systems and tracking to inform the updates. This includes important areas we identified such as: Use of personal security alarms, Overtime, and Disciplinary action.	Have Implemented	An audit of all policies was completed in April 2025, and archived policies have been removed from PowerDMS. The Personal Security Alarm Policy was updated April 7th, 2025. The Chief Financial Officer is monitoring employee overtime then sends a monthly report to the Superintendent to review and then discuss with Department Heads. Human Resources is monitoring disciplinary actions and reporting quarterly to the Administrative Executive Committee and Governing Body.
	4	Osawatomie State Hospital should use newly created and already existing data to monitor safety issues to include: Environment of Care Committee results, Trends in personal security alarms (i.e., by area, staff member, and patient), Overtime by staff member, Trends in disciplinary action (i.e., by area and staff member).	Have Implemented	Monthly audits are conducted on each rotation and unit by the Safety Coordinator, to ensure all staff members have their personal alarms. Any instances of noncompliance are reported to the appropriate supervisors and is shared with Administrative Executive Committee. Also our Safety Coordinator sends out Monthly Safety Update campus wide and has included information about personal safety alarms every month.
	5	To improve morale and working conditions, Osawatomie State Hospital management should work on communication and setting clear expectations. Management should develop processes to ensure all staff are held to expectations consistently.	In Progress	Upon review of the job-specific competencies, it was determined the competency assessment substantially overlapped with the employee performance evaluation, resulting in the same areas being evaluated twice. To address this duplication, Osawatomie State Hospital (OSH) has developed a set of core competencies which apply organization-wide and is in the process of aligning these competencies with relevant policies and procedures.
Kansas Office of Veterans Services
Reviewing Veterans’ Claims Assistance Program Matching Requirements (2025)	1	KOVS should provide written guidance to the veteran service organizations that define what activities or costs are allowable as matching support of the VCAP program. This should include how to estimate and report on shared office staff and resources (i.e., state headquarters)	Have Implemented	The Kansas Office of Veterans Services has amended Attachment G, Scope of Work, Billing Procedures section to the standard business contract to reflect the LPA requirements Calculating Grant Match in Kind Payments . Both service organizations acknowledged and signed the contract for FY26. KOVS has updated K.A.R. 97-6-6 to reflect the changes to attachment G and it is in the process of being approved.
	2	KOVS should require the organizations to provide documentation with their match summary reports that’s sufficiently detailed to allow officials to determine what the amounts are and how they support the VCAP program directly.	Have Implemented	Per the current annual contract with each participating VSO, the VSOs are required to submit monthly invoices reflecting their operational expenses and how they support the VCAP program.
	3	KOVS officials should review this documentation and request clarifications or additional information as needed prior to approving grant reimbursements or future grant applications.	Have Implemented	Each VSO participating in the program provides detailed invoices that reflect operational expenses related to assistance services occurring at both their field offices and organizational headquarters. The KOVS Deputy Director reviews the submitted documentation and requests clarification as necessary prior to approving grant reimbursements.
	4	KOVS should ensure that they understand what their annual VCAP allocations are and extend grant contracts that are correct when they are signed. Furthermore, KOVS should follow proper state contract procedures when changes are needed and make sure that any changes to the contracts are properly documented.	Have Implemented	The Division of Budget issues direction on the annual VCAP allocation and KOVS has a clear understanding of the funding available for the program. KOVS coordinates with DoB to ensure it follows proper state procedures when any changes are necessary. In FY25 unused grant amounts for each VSO were unencumbered in a timely manner and were reappropriated in FY26 budget allocations for the VCAP program. Both VSOs are tracking the funding available to them for services provided.
Kansas Department of Health and Environment, Kansas Department for Aging and Disability Services, and Department for Children and Families
Evaluating State Agencies’ Registries of Perpetrators of Abuse, Neglect, and Exploitation (2025)	1	KDHE should consult with KDADS, DCF, CMS, and the Legislature to clarify its role in the state s ANE investigation system. As part of this, KDHE should determine how to reconcile its obligations under state law with its obligations to CMS, such that suspected perpetrators are investigated adequately and timely.	In Progress	The Kansas Department of Health and Environment, Bureau of Facilities and Licensing (KDHE/BFL), will continue to collaborate with the Kansas Department for Aging and Disability Services (KDADS), the Department for Children and Families (DCF), the Centers for Medicare and Medicaid Services (CMS), and other appropriate stakeholders to further clarify KDHE s regulatory role within the state’s Adult Abuse, Neglect, and Exploitation (ANE) framework. As part of this effort, KDHE BFL will review existing complaint intake, referral, and survey processes to ensure they remain consistent with applicable state and federal requirements; identify opportunities to strengthen interagency communication and referral practices; and participate in discussions regarding potential statutory, regulatory, or procedural improvements. Any future expansion of KDHE BFL responsibilities will require appropriate statutory authority, resource considerations, and coordination with state and federal partners.
	2	KDADS should consult with KDHE, DCF, and the Legislature to clarify its role in the state s ANE investigation system. As part of this, KDADS should develop processes to ensure it gets needed documents to update the KNAR.	In Progress	KDADS continues to work with DCF and KDHE to improve the registry process within the context of state and federal laws. KDADS will continue to collaborate on referral processes for requesting placement of nurse aides on the Kansas Nurse Aide Registry (KNAR) KDADS forwards on complaints about licensed staff who are not also certified under KDADS authority to the appropriate licensing board. If the complaint is substantiated and the subject of the complaint also has a Certified Nurse Aide (CNA), Certified Medication Aide (CMA), or Home Health Aide (HHA) certification, KDADS issues a Notice of Finding for placement on our KNAR. Through many hours of meetings with DCF and KDHE, KDADS ultimately determined a statutory fix is required to bring clarity to the fragmented system and better define each agency s role in accordance with federal and state law.
	3	DCF should consult with KDADS, KDHE, and the Legislature to clarify its role in the state s ANE investigation system. As part of this, DCF should develop processes to ensure it makes complete referrals to other agencies.	In Progress	DCF/APS added new fields to the electronic case records system, KIPS, to track whether an alleged perpetrator holds a license issued by a state regulatory agency, including KDHE/KDADs. The field is mandatory, so the APS Protection Specialist must review it for each investigation. Furthermore, the PPS Quality Assurance team will be pulling reports for APS leadership to review. The report will allow APS leadership to ensure that when an alleged perpetrator is substantiated for abuse, neglect or financial exploitation, the file can be reviewed to ensure APS is in compliance with KSA 39-1433(4)(c). The expectations have been provided to the APS Management Team for supervisors to review with staff.
The Kansas Department of Revenue
Reviewing Tax Credits Awarded and Used through the High Performance Incentive Program and the Kansas Affordable Housing Tax Credit (2025)	1	The Kansas Department of Revenue (KDOR) should continue correcting its HPIP data to ensure its accuracy by reviewing HPIP-certified businesses tax returns and ensuring data from the returns are captured in ATP. KDOR should report the corrected HPIP data to the Legislature. As part of correcting its data, KDOR should evaluate whether the ATP system is capable of processing HPIP data. If it s not, KDOR should consider working with the Legislature to identify ways to upgrade or replace ATP.	Have Implemented	The Department is now reviewing HPIP data on a monthly basis to ensure accuracy. KDOR verified and reported TY 2019 through TY 2023 HPIP data to the Kansas Senate Committee on Assessment and Taxation and the House Committee on Taxation on January 22, 2026. The Department is continuing to evaluate our current tax system and the possibility of enhancing our tax credit reporting system. Any corrective measures must be carried out within an extremely narrow window, so as not to disrupt the processing of tax returns during the regular and extended filing seasons. As a result, there is limited flexibility to undertake such a significant system update, given the demands of other legislative priorities.
Kansas Department of Revenue, City of Wichita, and City of Manhattan
Reviewing Select Cities’ Use of Transient Guest Tax Revenues (2025)	1	Wichita should stop charging administrative and audit fees to their tourism and convention fund or update their charter ordinance to include these fees as an allowable expense.	Have Implemented	The Wichita City Council approved Charter Ordinance 243 on 16 December 2025, and it became effective at the end of the protest petition period. The Ordinance was provided to KDOR on 4 March 2026 and feedback was provided to KLPA on 4 March 2026.
	2	Wichita and the Kansas Department of Revenue should develop a plan to resolve conflicting statutory and city ordinance definitions. This could include: –Wichita revising the business definitions in its ordinance to align with state law. –Wichita collecting its own transient guest tax revenues rather than using KDOR to collect them. –KDOR and Wichita developing processes for periodically comparing ordinances to state law to ensure they align as intended.	Have Implemented	The Wichita City Council approved Charter Ordinance 243 on 16 December 2025, and it became effective at the end of the protest petition period. The Ordinance was provided to KDOR on 4 March 2026 and feedback was provided to KLPA on 4 March 2026. The City will engage KDOR if the City ordinance ever changes in the future and will monitor annual legislative action if the relevant State statutes change.
	3	The Kansas Department of Revenue should develop written agreements or contracts with the cities they collect transient guest taxes for that clarify the department s role in the collections process. The clarification should include what each party is expected to do to ensure state law and charter ordinances regarding guest tax collections align.	In Progress	The Department began work on the written agreements in September 2025. Work resumed on these agreements following the conclusion of the 2026 legislative session. Each agreement will provide the local government’s role in tax administration and the Department’s role in tax collection of the transient guest tax. The Department will prioritize agreements when transient guest tax is imposed by a city or county for the first time. We will then systematically develop written agreements for the more than 150 transient guest tax systems currently in place by local governments. This effort will be both time and labor intensive as all of the agreements will not necessarily be uniform among the local units.
	4	The Kansas Department of Revenue should include language in their transient guest tax guidance documents that clarifies business responsibility to track differences between state law and city charter ordinances and which one applies in the event of a conflict.	In Progress	The Department is reviewing and updating guidance documents that clarifies a business responsibility to track differences between state law and city charter ordinances. The Department is also working with local governments to support these businesses and provide consistent direction to retailers regarding the collection of the transient guest tax.
	5	Manhattan should monitor and coordinate with their contracted external accounting firm to ensure their annual comprehensive financial reports are completed on time.	Have Implemented	As of the finalization of this report, the City of Manhattan’s 2023 audit has been completed and received an unmodified opinion. The City is working with Allen Gibbs & Houlik, L.C. (AGH) to assist with the preparation of audit workpapers and has created a schedule with our accounting firm BT&Co. PA for the timely completion of the annual audit.