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Harrisonville aldermen accept 2024 audit; auditors flag emergency services fund shortfalls
Summary
The Board of Aldermen approved the city's annual audit for the year ended Dec. 31, 2024, receiving a clean opinion from KPM CPAs while auditors highlighted a multi-year overdraft and a deficit in the emergency services fund and summarized single-audit testing of federal grant programs.
The Harrisonville Board of Aldermen voted to accept the annual audit for the year ended Dec. 31, 2024, during its regular meeting, approving Resolution 2025-13 after a presentation from the city's external auditors.
Auditor John Cummings of KPM CPAs told the board the firm issued an unmodified (clean) opinion on the city's financial statements and called attention to accounting changes and several notable fund-level items. "In our opinion, the financial statements referred to above present fairly in all material respects the respective financial position of the governmental activities, the business type activities ... of the city of Harrisonville, Missouri as of 12/31/2024," Cummings said.
Cummings said the audit included a required restatement after implementing new GASB guidance on compensated absences and noted several fund details relevant to the board's budgeting and reserves. He reported general fund revenues of $14,900,220 and expenses of $15,495,867 for 2024, a net increase to the general fund of $891,009, and an ending general fund balance of $34,963,962, of which about $21,000,000 is restricted for capital projects.
The auditor told aldermen the emergency services fund showed negative pooled cash of about $1,200,000 and a reported deficit of $589,367. "On the emergency services fund, cash was overdrawn by about $1,200,000 in that fund," Cummings said, and he recommended the board consider appropriate transfers and continued scrutiny of charge-for-service rates and collectability.
Cummings also described the city's single-audit work, noting KPM tested three major federal programs because each exceeded the federal single-audit threshold. The city's audited federal expenditures included the Airport Improvement Program (CFDA 20.106) with $4,167,977; Coronavirus State and Local Fiscal Recovery Funds with $1,945,557; and a FEMA Hazard Mitigation Grant with $828,065. He said no material weaknesses or reportable findings were identified under 2 CFR 200.516(a).
Aldermen moved quickly to approve the audit acceptance. Alderman Turner moved to approve the resolution, seconded by Alderman Doerhoff earlier in the meeting; later, Alderman Cheney made a motion to adopt the resolution after the presentation, seconded by Alderman Milner. A roll-call vote recorded ayes from Milner, Turner, Cheney, Fouch, Doerhoff and Mills; Aldermen Franklin and Davidson were recorded as excused. The motion carried and the council bill became Resolution 2025-13.
Alderman Mills praised city finance staff after the vote: "I'll just, commend the, finance department, for another another great year." City Administrator Harrison Bell and aldermen also thanked the finance team and KPM CPAs for the audit work.
