... r~ BerberichT raha n& Co., P. A... I ~ L, LEG'ISLATIVE POST AUDIT COMMITTEE LEGISLATIVE BRANCH OUT-qF-STATE TRA VELCbsTs PERFORMANCE AUDIT REPORT

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1 11111.', ~,. ~ BerberichT raha n& Co., P. A... r.. Certified Dublic Accountahts r~,. LEG'SLATVE POST AUDT COMMTTEE LEGSLATVE BRANCH OUT-qF-STATE TRA VELCbsTs r ' n u f' ~ L,,, o P PERFORMANCE AUDT REPORT....', YEAR ENDED JUNE 30, ;

2 Berberich Trahan & Co. P. A. Certified Public Accountants 800 SW Jackson Street, Suite 1300 Topeka, KS Telephone Toll Free Facsimile cpakansas@cpakansas.com REPORT ON THE PERFORi\1ANCE AUDT OF OUT-OF-STATE TRAVEL COSTS OF THE LEGSLATORS, LEGSLATVE STAFF AND LEGSLATVE STAFF AGENCES Legislative Post Audit Committee Kansas State Legislature: '! The Legislative Division of Post Audit contracted with our firm to complete a performance audit of the outof-state travel costs of the Legislators, Legislative staff and Legislative staff agencies. As a part of this audit, we were requested to review and analyze a sample of employees' travel records and supporting documentation over the past year and determine whether they complied with all applicable statutory or regulatory travel requirements. The audit included the purpose and authorization for the travel, whether all lodging, meals, and other reimbursed expenses appeared to be reasonable and directly related to the purpose of the travel and whether any personal travel costs were inappropriately reimbursed, etc. We conducted our audit in accordance with the standards for performance audits contained in Government Auditing Standards issued by the Comptroller General of the United States. The pertinent data gathered in completing the above audit as well as our fmdings and recommendations follow. We would be happy to discuss these findings and recommendations with you. June 28, 2000 r l J rj' ~- E MCGLADREYNETWORK ~ Atl l1deoe:1dently Owred Member ~ > 'Noddwidr: Services Thro:Jg'1 RSM l1ternatjona~

3 LEGSLATVE POST AUDT COMMTTEE OUT-OF-STATE TRAVEL COSTS OF THE LEGSLATORS, LEGSLATVE STAFF AND LEGSLATVE STAFF AGENCES Procedure 1: SELECT A SAMPLE OF OUT-OF-STATE TRAVEL COSTS BY LEGSLATORS, LEGSLATVE STAFF M'D LEGSLATVE STAFF AGENCES We selected certain vouchers for testing from a State fiscal year 1999 listing of all state vouchers labeled under the object code "Travel" for the following five departments included in the legislative branch: Legislative Coordinating Council, Legislative Research, Legislature, Legislative Post Audit and Revisor of Statutes. We obtained this listing from the Legislative Division of Post Audit and agreed the total travel expenditures to the total from a Statewide Accounting and Reporting System (STARS) report provided by Accounts and Reports, Department of Administration. We used the following parameters in our sample selection process: ~. L Selected all individual vouchers greater than $ 1,500. Haphazardly selected an additional 10 vouchers to ensure that all departments are covered in the test work. Selected any vouchers from unusual vendors. Selected a voucher from any vendor that has fallen under the scope of $ 1,500 but has had significant activity (greater than three reimbursements) during the fiscal year. All payments to third-party vendors or non-state employees were discarded from the sample population. Our selection process resulted in a sample of 40 vouchers. r ' i L, Procedure 2: REVEW OUT-OF-STATE TRAVEL COSTS BY LEGSLATORS, LEGSLATVE. STAFF AND LEGSLATVE STAFF AGENCES We obtained an understanding of the procedures related to out-of-state travel followed by the five legislative departments. This understanding was obtained through discussions with department heads and administrative assistants. We then gathered all supporting documentation related to the selected vouchers from Procedure #1 including related out-of-state trips and performed the following test work: A revjew for required authorizations and approvals for the travel and related documents r We examined the supporting documentation included with the vouchers for proper advance authorization, which could be in the form of authorization letters, lists of authorized travelers "travel squad," or excerpts from meeting minutes. We found no instances where travel was not properly authorized in advance. We also examined the selected vouchers for proper review and signature by the department director. We noted no instances where the voucher was not properly reviewed and signed by the department director. -2-

4 A determination of whether the length of stay covered by lodging and subsjstence is reasonable given the official dates of the event attended We examined the supporting documentation, such as event brochures, to determine the dates of the event attended and compared these dates to the number of nights claimed for reimbursement. We noted the following findings: 1. Two instances were found where one extra night was claimed in comparison to the event dates and improperly reimbursed for a combined extra cost of $ One instance where an extra day of salary per diem was paid to an individual in the amount of $ 72 in comparison to the dates of the event and the number of days by others attending the same event. 3. One instance where a day of salary per diem in the amount of $ 72 should have been claimed by an individual and was not. A determination of whether any additional costs incurred for a spouse or other person were paid by the State when not appropriate n order to determine if additional costs were incurred and reimbursed for a spouse or other person, we examined event brochures and compared other staff members' reimbursements (who attended the same event) to obtain single lodging rates, shuttle availability and meal costs. We noted the following findings: 1. One instance where a total of $ 160 was incurred due to the spouses' attendance which required a double-occupancy room rate. 2. One instance where car rental fees of $410 were incurred at a conference where shuttle service was available to and from the airport and other sites. The individual's entire family was in attendance. A determination of whether the purpose of the travel was reasonably related to the traveling employee's job responsibilities We determined the purpose of the event attended by an individual by reading event brochures and other supporting documentation. We then compared the nature of the event to the individual's job title or position to determine if the event was reasonably related to their job responsibilities. We noted no instances where the event attended was not reasonably related to the individual's job responsibilities. A determination of whether the level of travel costs incurred were above necessary and reasonable levels n order to determine if travel costs were reasonable, we compared the costs incurred by individuals attending the same event, event brochures and the State Travel Handbook which lists high-cost geographical cities. We noted the following findings: n lo -3-

5 1. Three instances where a more expensive room was chosen by an individual rather than the conference single room. The extra costs totaled $ Eight instances where a personal vehicle was driven to the event and the mileage reimbursement costs incurred were significantly more than airfare to the same location. The mileage reimbursements ranged from $ 407 to $ 852 for a total of $ 4, Four instances where the amount claimed for reimbursement for meals was excessive as the conferences provided a majority of the meals and fellow attendees claimed significantly less reimbursement for meals. The four reimbursements noted ranged from $ 185 to $ 408 for a total of $ 1, One instance where a car was rented at an additional cost of $ 165 when the conference was held at a resort site and shuttle service was available. Procedure 3: OTHER MATTERS Provide suggestions for improvements to the legislative branch travel process Overall, we noted 18 findings out of the 40 vouchers selected for test work. All 18 vouchers with findings were from Department No. 428, Legislature. Based on the findings noted above, we recommend that the Legislature department revise their travel policy to require receipts for meals and provide a framework for allowable costs to ensure that only employee meal costs are reimbursed and the meal costs are reasonable and fair given factors such as number of meals provided by the conference and geographic area. We understand that during Fiscal Year 2000 the policy was revised with the adoption of an amendment to Policy 34 that states receipts are required for "individual meals above $ 10." n addition, we recommend revising the travel policy by placing a cap on mileage reimbursement in an amount equivalent to comparable airfare. Our final recommendation is to consider creating a policy for prior approval of rental vehicles. r L ~j -4-

6 STATE OF KANSAS BEN F. BARRETT DRECTOR WLLAM G: WOLFF ASSOCATE DRECTOR ALAN D. CONROY CHEF FSCAL. ANALYST STAFF..E:GSLATVE COORDNATNG COUNCL NTERM COMMTTEES STANDNG COMMTTEES LEGSLATVE NQURES THE LEGSLATVE RESEARCH DEPARTMENT 300 W. TENTH ROOM 545-N TOPEKA. KANSAS PHONE (785) Z FAX (785) E-MAL: NTERNET: July 18, 2000 Ms. Karen L. Keehn Berberich Trahan & Co., P.A. 800 SW Jackson Street, Suite 1300 Topeka, Kansas Dear Ms. Keehn: Thank you for the opportunity to review and comment on the draft copy of your firm's audit of FY 1999 Legislative Branch out-of-state travel expenditures. The Research Department is pleased to have been included in this review. We note that none of the findings applies to this agency. Consequently, we have no additional comments about the audit. Sincerely, BFB/aem Ben F. Barrett, Director fl!

7 LEGSLATURE OF KANSAS LEGSLATVE DVSON OF POST AUDT July 19, 2000 MERCANTLE BANK TOWER 800 SOUTHWEST JACKSON STREET, SUTE 1200 TOPEKA, KANSAS TELEPHONE (785) FAX (785) E-MAL: John Berberich, Partner Berberich Trahan & Co., P A 800 SW- Jackson, Suite 1300 Topeka, Kansas Dear Mr. Berberich: Legislative Post Audit has received and reviewed your completed audit report, Legislative Branch Out-a-State Travel Costs. As the Legislature's audit agency, we work hard to minimize and contain our travel costs, both for out-of State and in-state travel 'm pleased to see that your firm identified no issues related to our staff's travel expenditures. As always, we were most pleased with the efficiency and professionalism of your staff. appreciate your help with this audit. Barbara J. Hint Legislative Post Auditor

8 NORMAN J. FURSE, A7TORKEY REVSOR OF STATUTES JAME::S A. WLSON. A7TORNEY F!RST ASS1STANT REV1SOR ASS1STANT REVSORS AVS A. SWARTZMAN. ATTORNEY DON S. HAYWARD. ATTORNEY MARY ANN TORRE::NCE::. ATTORNEY WLLAM L. E::DDS. ATTORNEY BRUCE w. KNZE. A7TORNEY THE::RE::SA M. KE::RNAN. ATTORNEY GORDON L. SELF. ATTORNEY JLL A. WOLTERS. AT70RNEY ROBERT J. NUGENT. A7TORNEY MCHAEL K. CORRGAN. ATTORNEY RENAE:: JEFFE::RE::S. ATTORNEY KE::NNETH M. WLKE::. ATTORNEY LSA D. MONTGOME::RY. ATTORNEY OFFCE OF REVSOR OF STATUTES 300 SW 10TH AVE:: STE:: 322. STATE::HO:JSE TOPEKA, KANSAS t 592 (785) FAX (785) LEGAL CONSULTAT!ON-LE:GSLATVE COMM!TTEES AND LEGSLATORS L GfSLAT!VE: BLL DRAFT!NG SECRETARY-LEG1SL,A TVE COORDNATNG COUNCiL SECRETARY-KANSAS COMMSS10N ON lnte:rstate COOPERATON KANSAS STATUTES ANNOTATED ED!TlNG AND PUBUCATON LEGlsLATlVE JNFORMAT10N SYSTEM COMPUTER lnfcrmaton STAFF MARY O. CHENG. M.S. RCHARD M. CHAMPNEY, B.S. July 18, 2000 tvs. Karen L. Keehn Berberich Trahan & Co., P.A. 800 SW Jackson St, Ste 1300 Topeka, KS Dear Ms. Keehn: Thank you for the copy of the audit costs for fiscal appreciates your opportunity to review and respond to the on slative branch out-of-state year The Office of Revisor of Statutes in this matter. have reviewed the report which you provided to me. the report contains no findings which are the result of state travel by employees of the Revisor of Statutes Off no addi t ional observations concerning the audi t time. NJF: 1 Sincerely, P~~vwa.e- NoFman J. iu'"?se -... Revisor of Statutes Because out-of have at this

9 State of Kansas Legislative Administrative Services 300 W 10th Avenue, Suite Topeka, Kansas Telephone: (785) FAX (785) TTY: (785) D Jeffrey M. Russell Director July 24, 2000 Karen 1. Keehn Berberich Trahan & Co., P.A. 800 SW Jackson Street STE 1300 Topeka, Ks Dear Ms. Keehn, Thank you for the opportunity to review and respond to the procedures report on the legislative branch out-ofstate travel costs for State fiscal year This response is meant to offer points of clarification to some items mentioned in your report. will note at the beginning the professionalism offered by your onsite auditor, Cynthia Darting. She was thorough, efficient and very quickly grasped the applicable rules and procedures. Response Page #3...length of stay tem #1 - Occasionally an extra night of lodging is permitted in comparison to the event dates if a Saturday night stay which includes lodging and meals greatly offset the discounted airline fare. The extra night stay is requested by the legislator and is approved by LAS in advance after calculating the savings. "'-=="-'-'-=-_- n some instances legislators are members of an organization's executive or other key committee and are required to attend a meeting prior to the beginning of the event. ="'-'-".:::.-- On occasion, for a variety of reasons, legislators refuse to claim salary or expenses that they are entitled to according to law. Page #3... additional costs tem #1 - We have visited with the auditor and have agreement that one of these two instances was a misread by the auditor. The other was a civilian authorized to travel by the legislature and it was not noticed that the spouse stayed at the hotel. JMR:ms Please feel free to contact me at your convenience should you require any further clarification. Sincew' 4 ~~ Jeffrey M. Russell Director

COMPLIANCE AND CONTROL AUDIT REPORT

COMPLIANCE AND CONTROL AUDIT REPORT LEGISLATURE LEGISLATIVE COORDINATING COUNCIL LEGISLATIVE EDUCATIONAL PLANNING COMMITTEE LEGISLATIVE RESEARCH DEPARTMENT OFFICE OF THE REVISOR OF STATUTES LEGISLATIVE