The Unified Government will adopt a budget amendment to repay $429,000 to the Kansas Department for Aging and Disability Services (KDADS) after a state audit found deficiencies in financial and program documentation at the Area Agency on Aging (PSA‑1).

Assistant County Administrator Alan Howes and Aging Director Ruth Jones briefed the Administration and Human Services standing committee on the audit. Howes said KDADS issued a final report on Aug. 5 following a 2024 review; "the recruitment demand from KDADS in the amount of $429,000, to to come out of aging fund balance," he said. Howes and staff described transitions in personnel, an ERP change to Workday, and the unusual ARPA funding inflow as complicating factors during the audited period.

KDADS findings included late financial reporting, subledger reconciliation gaps, delayed single‑audit completion, improper volunteer stipend practice at congregate meal sites, missing time and activity records that led to the largest recoupment, incomplete supporting documentation for reimbursement requests, and an outstanding subrecipient audit review for Leavenworth County that staff later completed.

Ruth Jones said the volunteer stipend practice dated from COVID‑era guidance and was shifted to formal part‑time employment when KDADS said stipends were not an allowable flat volunteer payment. "The learning curve for the management of the grants is about 12 months," Jones said, noting staff turnover and system changes.

Grants financial administrator Lupe Valdovino described corrective actions: implementing a time‑and‑effort log to document staff allocations, quarterly reviews of records, improved reconciliation between the subledger and general ledger, and desk reviews and a site visit to Leavenworth to monitor the subrecipient. "We have now put in place a time and effort log that all staff is doing," Valdovino said.

The committee approved a budget amendment to cover the KDADS recoupment by drawing on the aging fund balance; members and staff emphasized cooperation with KDADS and that the repayment represents documentation shortcomings rather than service delivery failures. Finance staff said the single audit is back on schedule and the organization has developed procedures to address the findings.

Ending: Staff said the actions will reduce the risk of future recoupments, and they will continue reconciliation and monitoring work. The committee voted 5–0 to adopt the budget amendment.