City approves 2024 audit and hires Hay Rice for 2025 audit contract

The Liberal City Commission approved the city’s 2024 financial audit and authorized a contract with Hay Rice and Associates to perform the 2025 audit for an amount not to exceed $58,000.

Dustin Ormiston, representing Hay Rice and Associates, told the commission the firm issued “an unmodified opinion on the regulatory basis” of accounting used by the city and explained that, because the city uses the regulatory basis prescribed by the state, the audit includes a required statement that the financial statements are not presented in accordance with Generally Accepted Accounting Principles (GAAP). Ormiston said the firm considered federal reporting and internal control matters required by the Uniform Guidance.

Vice Mayor Landry moved to approve the 2024 audit as presented; Commissioner Parsons seconded. The vote was 4-0 in favor. Commissioner Warren moved to approve the 2025 audit contract with Hay Rice and Associates in an amount not to exceed $58,000, funded from the general fund, airport, solid waste, water and wastewater funds; Parsons seconded. The motion carried 4-0.

Ormiston walked commissioners through the audit report, telling them the packet includes the impact monitor report, fund balances, notes to the financial statements, and budgetary comparison schedules. He said the firm’s report on major federal programs and internal control spans later pages of the report and noted that rating companies commonly look back three years of audited financials when assessing bonds.

City Manager Scarlet and staff were thanked during the meeting for cooperating with auditors and responding to suggestions during the audit process. No additional action was taken beyond approving the audit and the contract.

The approvals allow staff to proceed with closing the 2024 audit record and engaging Hay Rice for work on the 2025 audit under the authorized budget and funding sources.