Report No. 2011-82
Findings in the audit of Kansas City 33 School District (KCSD)
The KCSD did not always competitively bid or effectively monitor contracts, and cost benefit analyses were not performed to determine how to best provide some services. Some contracts had not been signed, and some contract amendments were not in writing.
During the 3 years ended June 30, 2010, the KCSD spent nearly $2 million on student incentives and over $2 million on food and meals purchased while not on travel status, but it does not maintain adequate documentation to support the disbursements. The KCSD should also review the Superintendent's $800 per month car allowance.
Capital Assets and Surplus Property
The KCSD does not maintain a complete list of, and has not regularly disposed of, surplus property. The district spends over $2 million a year for utilities and insurance on the 38 closed schools, but has recently hired an employee to coordinate, manage and oversee the repurposing of the closed schools. Property movement procedures are not followed, making it difficult to track capital assets and ensure they are not misappropriated. Also, the KCSD was paying to lease 11 copiers that were not in use.
The KCSD did not always comply with the Sunshine Law. Open meeting minutes did not always document the vote to close meetings and the reason for closing, and it appears closed meetings were not limited to the topics allowed by law. Also, board members did not always abstain from voting when a conflict of interest existed.
The KCSD does not adequately identify related employees. The KCSD paid excessive amounts of overtime, and although a new policy requiring pre-approval for overtime has helped reduce overtime costs, it is not always enforced.
The KCSD lacked adequate controls over student activity funds, which allowed the former principal of Lincoln College Preparatory Academy to make unauthorized disbursements and unauthorized cash withdrawals totaling approximately $58,000 in 2009. The KCSD should perform timely bank account reconciliations to detect errors or theft promptly.
The KCSD should establish formal written policies and procedures to account for all textbooks purchased and ensure students are held accountable for lost or stolen textbooks.
The KCSD has not performed an analysis of the potential cost savings of increasing their walk-zone from the current 1.5 miles. State law only requires the district provide free transportation for students living at least 3.5 miles from school. In addition, the transportation contractor hired by the district indicated cost savings could be realized by returning to the three-tier bell schedule, rather than the two-tier bell schedule recently adopted.
The KCSD reduced expenditures to stabilize the financial condition, which should continue to be monitored.
In the areas audited, the overall performance of this entity was Fair.*
American Recovery and Reinvestment Act 2009 (Federal Stimulus)
The KCSD was awarded the following Federal Stimulus funding:
$8,598,741 Title I Grant to Local Education Agencies: $4,136,291 received and $4,768,621 expended during the year ended June 30, 2010 (FY2010) for salaries and benefits for 83 supplemental teachers, paraprofessionals, instructional coaches, after school tutoring, and student targeted instructional materials and technology.
$79,554 Title I, Part D Grant to Local Education Agencies: $4,962 received and $2,003 expended during FY2010 for two teachers, a paraprofessional, and classroom supplies.
$5,785,160 Special Education Grant to States: $2,538,232 received and $4,573,042 expended in FY2010 for salaries and benefits for 19 classroom positions, 1 part-time nurse and 1 administrator; professional development; and assistive technologies and computer equipment, supplies, and instructional materials.
$178,094 Early Childhood Special Education Grant: $6,320 received and $33,408 expended during FY2010 for specialized educational services.
$17,572,996 State Fiscal Stabilization Fund - Education State Grants: $16,435,592 received and expended during FY2010 for salary and benefits for 262 staff members, a stipend for certified staff voluntarily participating in professional development, and bus transportation of students for a portion of a month.
$239,940 Education Technology State Grant: $209,364 received and $179,308 expended during FY2010 for salaries and benefits for three resource teachers.
$216,371 Head Start Grant: $0 received and $18,657 expended during FY2010 for playground equipment, classroom furniture, and supplies.
$109,066 Education for Homeless Children and Youth Grant to Local Education Agencies: $0 received and expended during FY2010.
*The rating(s) cover only audited areas and do not reflect an opinion on the overall operation of the entity. Within that context, the rating scale indicates the following:
The audit results indicate this entity is very well managed. The report contains no findings. In addition, if applicable, prior recommendations have been implemented.
The audit results indicate this entity is well managed. The report contains few findings, and the entity has indicated most or all recommendations have already been, or will be, implemented. In addition, if applicable, many of the prior recommendations have been implemented.
The audit results indicate this entity needs to improve operations in several areas. The report contains several findings, or one or more findings that require management's immediate attention, and/or the entity has indicated several recommendations will not be implemented. In addition, if applicable, several prior recommendations have not been implemented.
The audit results indicate this entity needs to significantly improve operations. The report contains numerous findings that require management's immediate attention, and/or the entity has indicated most recommendations will not be implemented. In addition, if applicable, most prior recommendations have not been implemented.