Audit finds Soft Warfare’s Base 1 grant spending allowable but behind schedule; committee seeks application records

The Legislative Post Audit Committee heard on Jan. 23 the results of a limited‑scope audit of Soft Warfare’s use of a $3 million Base 1 grant administered by the Kansas Department of Commerce.

The audit presentation said Soft Warfare spent grant funds “on items generally allowed in its grant award, but it did not spend all funds within 2 years as the original contract required.” The report records that Soft Warfare had spent just over $1.6 million of the $3 million award as of Sept. 30, 2024, and that the company had spent about $900,000 of its required $1 million match through the same date.

The audit said the Base 1 grant program uses federal pandemic funds for infrastructure‑related costs tied to economic development projects, and that the Commerce Department awarded about $99 million to 35 recipients in April 2022. Soft Warfare’s project was described in its application as a modular data center and a longer‑term educational cybersecurity range at a site in Great Bend. The audit noted Soft Warfare’s application estimated the total project cost at $4 million, with $3 million from the Base 1 grant and a 25% match from the company.

Auditor Kristen…