The Department of Agriculture’s Weights and Measures Program helps ensure the accuracy of commercial measuring devices and price systems. Among other things, program staff inspect point-of-sale systems (e.g., electronic scanners in grocery stores or retail businesses) for price accuracy across the state. We found the program’s price verification process did not appear to provide sufficient coverage of those systems. That is because state law includes few requirements for price verification inspections and the program considered them a low priority. The program inspected point-of-sale systems at 365 business in fiscal year 2018, which is likely only a fraction of all point-of-sale systems in the state. Moreover, more than half (59%) of the businesses inspected in fiscal year 2018 failed a price verification inspection.
Follow-Up Audit: Reviewing Agencies’ Implementation of Selected Performance Audit Recommendations
The three agencies we reviewed fully implemented two of the six recommendations made in our prior audit reports. As part of a 2016 audit of the Department for Children and Families’ (DCF) policies and procedures to ensure the safety of children, we found problems related to background checks and monthly in-person visits and issued two recommendations. We determined the department partially implemented one recommendation and fully implemented the other. As part of a 2015 audit to follow up on safety issues at the Kansas Juvenile Correctional Complex (KJCC), we found continued issues with supervision of juvenile offenders, tool inventory and destruction, and tracking of disciplinary actions and issued three recommendations. We determined KJCC fully implemented one recommendation and partially implemented two recommendations. As part of a 2015 audit to follow-up on issues related to the Kansas Department of Education’s (KSDE) oversight of virtual schools, we found two additional issues related to oversight and issued one recommendation. We determined KSDE partially implemented the recommendation.
Statewide Single Audit State of Kansas Fiscal Year 2018
The Office of Information Technology Services (OITS) is responsible for providing centralized information processing and technical management services to all state agencies. As an agency that does not generally receive a state appropriation, OITS must cover its expenses by charging agencies for the more than 40 services it provides. To determine whether OITS’ service rates accurately reflected its expenses to provide those services, we reviewed 24 service rates—two of which we examined in detail, and 22 that we reviewed more simply. OITS’ fiscal year 2019 rates did not accurately reflect prior year expenses for the two services we examined in detail. They also did not accurately reflect forecasted expenses for any of the 24 services we reviewed.
Online Sales Tax: Reviewing Issues Related to Online Sales Tax Laws in Kansas
Kansas lacks two specific laws that many states have that require more retailers to collect and remit sales tax for online purchases. Kansas lacks a law to require online retailers conducting a minimum amount of business in the state to collect and remit sales tax, and Kansas lacks a law to require a marketplace facilitator to collect and remit sales tax on behalf of its retailers. We estimate the state could collect an additional $40 million to $70 million in sales tax revenue annually over what the state collected in FY 2018 if it had two additional laws. However, due to a lack of data and other information, we were not able to account for a few factors that could overstate our estimate.
State Agency Information Systems: Reviewing Security Controls in Selected State Agencies: Osawatomie State Hospital