Performance Audit Report on Selected Awards to Kansas Department of Commerce

We conducted a performance audit of a National Endowment for the Arts (Arts Endowment) award issued to the Kansas Department of Commerce (KDC). Based on our review, we determined KDC generally met the financial and compliance requirements set forth in the award documents. However, we identified the following areas requiring improvement. For instance, KDC: did not report actual costs on its Federal Financial Report; did not document its methodology for recording and reporting allocated payroll costs for Arts Endowment awards; and did not have written policies and procedures in place to ensure that contractors are not debarred or suspended prior to the award of Federal funds. Thus, we are questioning overstated costs totaling $950. We have made two recommendations for KDC to improve these areas, and one recommendation to the Arts Endowment regarding the questioned costs.