The Rundown with Kansas Legislative Division of Post Audit

The Unified Government (UG) of Wyandotte County consolidated in 1997 and provides countywide services to all of Wyandotte County and city services to Kansas City, Kansas (KCK). This audit focused on county-dedicated money. Of the 3 state-administered revenue streams we selected, the UG did not correctly allocate 1 state-administered revenue stream. Specifically, the UG allocated less Special Highway revenue to the county and more to each city than required. The UG distributed the Local Sales Tax and Expanded Lottery Revenue according to the requirements we evaluated.  The UG spent monies in the 3 county funds we reviewed according to the general statutory and budgetary requirements we evaluated. The UG must provide 18 services countywide, but the law does not require services to be provided proportionally by location or population. We performed a limited review of the UG’s budget to assess the extent to which departments were supported by the County General Fund in calendar year 2024 and found the Legislative Auditor Department was fully funded through the County General Fund although it serves both the county and KCK. In the course of our work, we also found several discrepancies or inaccuracies for calendar year 2024 actual expenditures within the UG budget document. Lastly, we found that interlocal agreements provided by the UG were not always fully executed. We made 3 recommendations for the Unified Government. 

In the 2024-25 school year, the state provided $51 million statewide to school districts to serve students who are English language learners. State law requires that any district spending from the bilingual fund must be directly attributable to a bilingual program.We evaluated 25 selected districts’ 2024-25 bilingual expenditures to determine how they spent those funds and whether a selection of those expenditures complied with state law. Most of the 25 selected districts’ bilingual expenditures were used to pay for the salaries and benefits of various staff. Of the $4 million in bilingual expenditures we reviewed in detail, a little more than $385,000 (9%) did not comply with state law. The compliance issues we identified may stem from vague state law and confusing guidance from KSDE.

We reviewed several years of data for 3 types of assessments that English learners and reviewed other data  to determine how English learners performance compared to other students. Over the 5 years we reviewed, the Kansas assessment scores of English learners were consistently lower than other students’ scores. Overall, English learners’ KELPA scores have remained relatively stable from 2021 through 2025.  In the last several years, the difference in NAEP scores between English learners and other students has widened in Kansas. In the last several years, Kansas English learners had lower graduation rates and higher dropout rates than Kansas students overall.From 2021 through 2023, a smaller percentage of English learners enrolled in a post-secondary institution compared to other students, but the 2 groups had more similar outcomes related to earning a degree or a certificate.

As of 2024, most states fund ESOL services based on either a single or multiple weighting. Kansas’s bilingual funding method differed from 5 comparison states, but its eligibility and spending rules were similar.  Kansas’s current bilingual funding formula offers flexibility, but other methods may tie more directly to student needs. Most stakeholders we talked to suggested changing Kansas’s current method for funding ESOL services.

The Legislature created the Industrial Revenue Bond (IRB) program in 1961 to promote economic development. Local governments issue IRBs to fund business facilities with the goals of growing the local economy and increasing property tax revenue. Businesses that use IRBs can get a 10-year property tax exemption (IRBX). During 2010-2024, local governments issued about $18.3 billion in industrial revenue bonds and exempted about $1.1 billion in related property taxes, most of which would’ve likely gone to school districts and local governments. 

Statute requires local governments to prepare cost-benefit analyses (CBAs) if they want to offer IRBXs but provides limited guidance on their quality. We compared foregone property tax revenue estimates in 23 CBAs to the actual foregone property taxes reported by county appraisers. The CBA estimates differed greatly from county appraiser amounts (between 94% lower and 6,065% higher). Some CBAs underestimated completed project values, some overestimated how much investment would translate into appraised value, and some used erroneous figures and assumptions when estimating property taxes.

Finally, we identified 3 subsidiaries of foreign businesses that received $282 million in IRB funds in 2024.

KSHSAA and 19 of the 20 school districts we reviewed had written policies that aligned with state law, and 16 of 20 districts said they would also allow participation in non-KSHSAA-regulated activities. The Kansas State High School Activities Association (KSHSAA) regulates 21 activities for 7th – 12th grades. State law requires school districts to allow eligible virtual and nonpublic-school students to participate in KSHSAA-regulated activities and directly related events. To participate in a KSHSAA-regulated activity, virtual and nonpublic-school students apply online to KSHSAA. KSHSAA officials decide whether a virtual or nonpublic-school student is eligible to participate in KSHSAA-regulated activities. During the last 3 school years, KSHSAA officials approved 88% of the 3,200 applications they received from virtual and nonpublic-school students. By contrast, school districts have discretion over whether virtual and nonpublic-school students can participate in non-KSHSAA-regulated activities. We reviewed KSHSAA’s and a selection of 20 school districts’ policies for the 2025-2026 school year to determine whether they align with state law. KSHSAA’s 2025-2026 policy for KSHSAA-regulated activities and directly related events aligns with state law. 19 of the 20 school districts (95%) we reviewed had adopted written policies that align with state law, although 3 adopted their policies after the 2025-2026 school year started. Further, 4 districts hadn’t updated their student handbooks or other guidance documents to align with state law. School district officials we talked to had varying views on the requirements in state law. And although it's not required, 16 of the 20 school districts (80%) we reviewed said they would allow virtual and nonpublic-school student participation in non-KSHSAA-regulated activities. Finally, while reviewing KSHSAA’s data, we saw 4 instances in which school districts told KSHSAA to deny students’ applications for reasons other than residency.

The Kansas State Fire Marshal's Office (KSFM) is responsible for creating and enforcing regulations related to fire safety. KSFM's regulations adopt the 2006 edition of the International Code Council's International Fire Code, the 2006 edition of the National Fire Protection Association's Life Safety Code, and other similar standards. KSFM inspects residential facilities, including nursing homes and assisted living facilities, for compliance with the Life Safety Code. KSFM inspects childcare facilities for compliance with the International Fire Code. We found KSFM does inconsistent inspections of residential and childcare facilities. For example, not all inspectors check the same things, and some inspectors don't cite facilities for certain violations. We also found inspectors don't adequately support the violations they cite with references to applicable requirements. These issues were due to the vast number of requirements inspectors are responsible for and inadequately designed controls.

Local fire departments may also inspect residential and childcare facilities for fire safety, either under an agreement with KSFM or independently. We found KSFM and 3 local fire departments (Hays, Olathe, and Newton) had similar processes for inspecting residential and childcare facilities. However, the 3 local departments inspect according to more recent editions of the International Fire Code than KSFM does. KSFM used the 2006 edition, while the 3 departments used editions from between 2015 and 2024. Differences between the editions likely contributed to inspection inconsistencies and stakeholder frustration.

Data limitations and federal laws prevented us from evaluating the accuracy of TANF benefit payments. The federal government does not require states to assess the accuracy of their TANF benefit payments. DCF has an employee performance review process that includes reviewing TANF payments for process and accuracy errors. However, the data DCF provided to us from that process is not sufficient or reliable for determining the department's accuracy in making TANF benefit payments. Federal law prohibits us from looking at the application data that would allow us to assess the accuracy of TANF benefit payments.

Unintended preferences didn't appear to ultimately influence who was admitted to either the KSU College of Veterinary Medicine or the KU School of Medicine, but control weaknesses may have allowed preferences at certain points in the process. We looked for certain controls in CVM and SOM's admission processes to determine whether there were significant opportunities for preferential treatment. We also used regression models to analyze CVM and SOM's 2023-2025 admission data to determine whether certain factors might have affected applicants' outcomes.
 
CVM policy is to invite all academically qualified Kansas residents for an interview. We didn’t find any unintended preferences in how the CVM selected applicants for an interview. However, we found several weaknesses in CVM’s process that could allow unintended preference in how applicants are scored at the interview stage. Our models showed some possibility of preferential treatment at the application material scoring stage, but this didn’t appear to have a large effect on who received admission offers. Our models also showed some possibility of preferential treatment at the interview scoring phase, but this also didn’t appear to have a large effect on who received admission offers. After the interview stage, the CVM calculates applicants’ final scores and rankings, which help decide which applicants will be offered admission. CVM does not have controls over the “not recommended for admission” designation, which can impact some candidates. Although there were small indicators of preferential scoring along the way, we did not find evidence of unintended preferences in which applicants ultimately were offered admission to the DVM program. 
 

SOM policy is to offer an interview to all applicants with Kansas ties who meet certain GPA and MCAT standards. We found several weaknesses in SOM’s file review process that could allow unintended preference in who is invited for an interview. Our models showed some possibility of preferential treatment at the interview invitation stage. We also found weaknesses in SOM’s process that could allow unintended preferences in how applicants are scored at the interview stage. Our models showed some possibility of preferential treatment in how interviews were scored, but this didn’t appear to have a large effect on who received admission offers. Our models also showed some possibility of preferential treatment in how applicants’ overall suitability was scored, but this also didn’t appear to have a large effect on who received admission offers. After the interview stage, SOM uses a standardized rubric to determine applicants’ final rankings for admission. Although there were small indicators of preference along the way, we did not find evidence of unintended preferences in which applicants ultimately were offered admission to the MD program.  

Based on the limited information we could review, we identified an estimated $700,000 to $1.2 million in Supplemental Nutrition Assistance Program (SNAP) benefits paid to recipients who may not live in Kansas in fiscal years 2023 and 2024. SNAP is a federal program that provides monthly funds to low-income families to buy food. There are a few common types of fraud schemes in the SNAP program including skimming, cash-for-card schemes, and imposter fraud. Federal and state law require DCF to take several steps to identify and prevent fraud in the SNAP program. DCF has policies that appear to comply with most of the federal and state requirements we reviewed, but we identified 1 state law DCF has not implemented. We did several tests to identify SNAP benefits that were potentially being misuses, but our analyses were limited by a federal law that prevents DCF from sharing certain SNAP recipient data with us. Based on the data we could review, we estimated that in fiscal years 2023 and 2024 DCF distributed about $700,000 to $1.2 million in SNAP benefits to recipients who may not have lived in Kansas. DCF told us that Kansas's simplified reporting requirements prevent them from quickly identifying when a recipient moves out of state. Making payments to individuals who have potentially left the state could have a small fiscal impact on Kansas.

Temporary assistance for needy families (TANF) is a federal program that provides states with funding to serve low-income families. TANF cash assistance provides monthly funds to low-income families to pay for a variety of needs. To be eligible for TANF cash assistance applicants must meet several criteria. TANF applicants must complete multiple forms that include over 250 pieces of information. DCF staff process each application by taking several steeps including verifying certain information and conducting and interview. It took DCF an average of 22 days to approve or deny TANF applications in fiscal years 2023 and 2024, but staff reported only spending about 1 hour actively verifying applications. On average, we estimated it took applicants who completed an online application in one sitting about 1 hour to complete a TANF application in fiscal year 2025. Stakeholders we talked to estimated it takes 15 minutes to 2 hours for individuals to complete the application. Federal and state law require DCF to take several steps to identify and prevent fraud and other misuse in the TANF program. Generally, DCF appeared to comply with the requirements we reviewed but we identified 1 state law DCF has not implemented. Last, we identified transactions at impermissible locations totaling about $23,000 in fiscal years 2023 and 2024, but this number is likely understated.

We completed 15 audits on 13 state agencies, 1 school district, and 1 city between CY 2024 and CY 2025. This summary report shows 7 of the 15 entities did not substantially comply with applicable IT security standards and best practices. Entities struggled with properly scanning and patching their computers. Entities also had compliance problems because they did not create, maintain, or test continuity of operations and disaster recovery plans, as well as incident response plans. Other significant issues included poor security awareness training or failed social engineering tests. More than half the entities had significant management process weaknesses, including inadequate asset inventories, contract issues, or lacking a designated information security officer. Additional security weaknesses included inadequate network, boundary, and data protection processes. We also noted some entities did not adequately protect their electronic backup data. Some entities had poor access or environmental controls for their data centers, and a few entities had inadequate account security control. Lastly, we identified significant security issues within entities' specific IT systems. The findings in this report are similar to those in previous summary IT reports. The main reasons for compliance problems across the 15 entities included insufficient top management attention, inadequate resources, and poor contractor administration.