State law calls for an annual financial-compliance audit of the general purpose financial statements and “the financial affairs and transactions of a state agency required to comply with federal government audit requirements…” RubinBrown, under contract with Legislative Post Audit, conducted this two-part audit. The first part was the report on the state’s Comprehensive Annual Financial Report (report R-13-005, released in March 2013). This second part, the Report on Federal Awards in Accordance with OMB Circular A-133, reports on compliance with laws, regulations, and provisions of contracts and grant agreements.
The auditors concluded that, except for the Unemployment Insurance program, the state complied, in all material respects, with the requirements applicable to each of the federal programs audited. However, the auditors reported 28 deficiencies in internal control, two of which were material weaknesses. The auditors also projected up to $73.4 million in questioned costs ($65,000 in known questioned costs). Six of the findings were repeated from prior years.
American Recovery and Reinvestment Act: A Review of Reporting
The State has implemented ARRA reporting requirements fairly well. Agencies generally have done a good job of filing their Section 1512 reports timely, and all agencies required to report have done so. All but two of 74 reports flagged by federal reviewers were satisfactorily resolved. The methodology agencies used to calculate jobs created and retained was consistent with federal guidance. However, two of the four programs we reviewed inaccurately calculated and reported the number of jobs created. We were able to reconcile expenditures listed on the Section 1512 report to the State’s accounting system for 16 of 18 programs we reviewed. However, the differences were relatively minor.
State Universities: Can State Universities Provide Postsecondary Education More Efficiently To Reduce Costs? (A K-GOAL Audit)
Our focus was on general-use operating expenditures funded with State General Fund and tuition revenues; we excluded restricted funds like federal grants and student fees, the University of Kansas Medical School, and Kansas State’s Veterinary Medicine School and Extension Programs. In fiscal year 2008, general use operating expenditures per FTE student ranged from $8,330 at Fort Hays State to $14,191 at the University of Kansas. Overall, Emporia State and the University of Kansas spent about $2,000 more per FTE student than their in-State counterparts. The vast majority of the universities’ general use operating expenditures were for education-related expenditures (72% to 85% of the total). Most of the differences in the amounts spent for educational programs appeared to be caused by differences among the six universities in staffing and salary levels. Numerous options exist for delivering universities’ academic programs and courses more economically or efficiently. Actions that universities in other states have reported taking to help reduce academic spending include eliminating or combining low-enrollment course sections, academic departments, or degree programs within universities; collaborating across universities to share course content, teachers, and instructional programs; increasing the number of courses offered online or through distance learning; and increasing faculty workloads. Actions they’ve reported taking to help reduce their institutional spending include maximizing the use of existing classroom and laboratory space to reduce the need for additional space; consolidating or changing administrative functions or processes—both within and across universities; outsourcing some non-academic services such as food service and grounds maintenance; sharing purchasing costs, and reducing energy costs. The State’s six universities have implemented some of these ideas to varying degrees, but there are numerous opportunities for additional efficiencies. Given recent budget cuts, the universities already may have taken some of the actions described in this report.
Compliance and Control Audit: Fort Hays State University
Fiscal Year 1993
Between 1983 and 1987, the Board of Regents and the State universities eliminated or modified 185 individual degrees and made16 additional changes to departments or subject areas. Of those changes, 29 allowed the universities to reallocate a total of about $1 million to other university activities. The remaining changes generally did not affect the numbers of faculty and courses, often because another degree was still offered in the same subject area.
Entry Into Retirement Annuity Plans at the Regents’ Institutions
Most employees who were signed up immediately for a retirement annuity plan either had a valid contract or the required experience when they started work. But many of those employees got their contract just before they started; they had not been enrolled in a valid plan at another school. The State incurs a cost of about $250,000 a year to pick up these employee’ retirement contributions. The Legislature will need to determine if it intended for these contibutions to be picked up.
This report lists average classes taught and average hours spent each week in class for all levels of instructor, by school and by department. Graduate teaching assistants served as primary instructors for two-thirds of the 768 courses they were assigned to, mostly in math and English.
Housing and Other Maintenance Support Provided to State Employees
The purpose of this audit represents the status of individual agencies as to their arrangements for providing employee maintenance. To obtain an analysis of the varying procedures among agencies and to then submit recommendations for updating and standardizing procedures on a state-wide basis. The primary focus will be given to family-type housing maintenance as this is the most significant area of maintenance in terms of varying procedures and cost factors involved. Observations concerning dormitory housing and food service support will also be included in this audit.