A state audit released Tuesday is critical of the Kansas City School District for not adequately documenting some four million dollars worth of student incentives, food and meals.

The audit report also said the district failed to list and dispose of surplus property, and did not always comply with the Sunshine Law.

State Auditor Tom Schweich’s audit gives an overall performance rating of Fair.

The report says the district spends over two million dollars a year for utilities and insurance on 38 closed schools, but has recently hired an employee to oversee repurposing of those facilities.

The audit found the KCSD has reduced expenditures to stabilize the financial condition, but the auditor noted the financial condition should continue to be monitored. Auditors recommended the KCSD also review the Superintendent’s $800 per month car allowance.

The auditor found:
*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 also establish formal written policies and procedures to account for all textbooks purchased and ensure students are held accountable for lost or stolen textbooks.

The audit found 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.

To view the complete county audit report, Citizens Summary and audit rating scale, click here.