Legislative Post Audit presents recent audits, flags issues from water operator certification to TANF and facility safety

Chris Clark, director of the Legislative Division of Post Audit, briefed the Ways and Means Committee on a slate of audits completed over the past year, underscoring findings the committee may choose to follow up through legislation or oversight.

Clark summarized multiple limited‑scope and full audits: low pass rates on water supply and wastewater operator certification exams; little use of the state’s alternative fuel tax credit because of statutory restrictions; incomplete documentation in Commerce’s awarding of community service tax credits; gaps in pre‑employment screening at the Department of Commerce; safety and staffing weaknesses at Osawatomie State Hospital; mixed results from evaluations of tax increment financing and star bonds programs; and concerns about TANF benefit amounts and caseload declines.

Why it matters: the audits identify operational risks, compliance gaps and policy outcomes across state programs that could affect public safety, program integrity and state finances.

Audit highlights

- Water system operator certification: From 2022–2024 roughly half of examinees passed water supply or wastewater operator exams, with lower pass rates on higher-level exams. KDHE officials told auditors low pass rates are largely due to examinees not adequately preparing; KDHE is exploring partnerships (for example with community colleges) to improve preparation.

- Alternative fuel tax credit and community service tax credits: The alternative fuel credit has been rarely used since 2007 because statutory changes limited eligibility; the community service tax credit awarded $8 million in 2023–24 but Commerce did not fully document eligibility checks, limiting assessment of selection decisions.

- Department of Commerce hiring practices: Post Audit found Commerce lacked adequate procedures to mitigate risks for staff overseeing financial programs; Commerce did not perform criminal-history checks through the KBI and did not consistently document hiring procedures. Clark noted House Bill 2342 addresses related concerns.

- Osawatomie State Hospital: The audit found inadequate processes for campus patrols, missing keys (56 keys missing, including grand master keys), insufficient fire‑trained security staff, overreliance on contract nursing (about 50% of nursing staff contracted) and high overtime use. Management did not consistently monitor safety risks or collect data to address recurring problems.

- Tax increment financing and star bonds: Of six TIF districts examined, three did not recover costs timely; districts showed growth in some “quality of life” industries, but auditors could not directly compare quantified benefits to costs. Star bonds districts grew in industries respondents said they value, though auditors could not definitively attribute changes to the program.

- TANF and DCF programs: Kansas’s TANF cash assistance benefit amount has not been updated since 1997 and has lost purchasing power. Caseloads declined about 77% from 2009 to 2023, influenced by eligibility changes, wage increases and inflation.

Committee reaction and follow-up

Committee members thanked Clark and asked for additional materials in some audits (for example, which states have guarantees similar to CAPERS 3, and further details on delinquent motor vehicle tax remittances by a county that created an $11,000,000 delinquency). Clark noted full reports and podcasts are available on the post audit website and encouraged legislators to submit audit proposals while the legislature is in session.

Ending

Clark offered to provide additional details requested by members and reminded the committee that post audit accepts proposals for new work; members said they will review the published reports and consider follow-up oversight or legislative action.