Review of Consulting and Professional Service Costs Claimed by Kansas Advocacy and Protective Services Inc., Topeka, Kansas

EXECUTIVE SUMMARY:

The objective of the review was to determine the allowability of consultant fees, legal fees and selected health insurance costs charged to Federal grants when these amounts were paid to, or on behalf of, members of Kansas Advocacy and Protective Services' (KAPS) board of directors.  The review covered the period October 1, 1995 through September 30, 2002.  During the period of our review, KAPS paid a total of $491,936 of unallowable consulting and legal fees, and health insurance costs to, or on behalf of, members of the KAPS board of directors.  We recommended the amount be refunded to the applicable Federal programs.  The law firm that responded to the draft report for KAPS indicated it could not respond to the validity of the facts and reasonableness of the recommendations because of the lack of records.  They further indicated that 'KAPS will cooperate fully with the Federal agencies involved in order to bring resolution to this matter.