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City of Hays accepts 2024 audit; auditors note late FAA reporting for three airport projects
Summary
The City Commission of Hays voted 4-0 to accept the 2024 audit from Adams Brown; auditors issued a clean opinion on the city’s Kansas regulatory basis and noted a significant deficiency for late FAA reporting on three airport projects that had been corrected.
The City Commission of Hays voted 4-0 to accept the city’s 2024 audit, presented by auditors from Adams Brown, who reported a clean opinion on the city’s Kansas regulatory basis accounts but noted a significant deficiency related to late reporting on several Federal Aviation Administration grants.
Jamie Beneshek, lead auditor for Adams Brown, told commissioners the audit provided an “unmodified opinion on regulatory basis,” while the auditors did not audit the financial statements under U.S. generally accepted accounting principles (GAAP). Beneshek said the city had $54,000,007.11 of unencumbered cash at year end and a total debt balance of about $36,000,008.08 across GO bonds, temporary notes, revolving loans and enterprise fleet management as of Dec. 31.
Alexis (last name given in the presentation) summarized the single-audit review of federal awards and said auditors found one significant deficiency (2024-001) in the airport improvement program related to late reporting. "There were 3 of the projects that didn't get turned in on time," she said, noting the late filings were caused by a timing mismatch between the grant period and the city's year-end, third‑party grant administration workflow and medical leave among staff. She added the items had been filed and the city had implemented a corrective action plan with calendar reminders.
Kier Brock, the city’s director of finance, introduced the audit team and noted the absence of any material weaknesses or significant deficiencies in internal control over financial reporting apart from the FAA reporting issue. Auditors reported total federal expenditures of $3,341,507 for the audit period.
The audit governance letter included a recommendation to reconcile the open purchase-order report to the general ledger to address a known software issue that can cause encumbrance differences when purchase orders cross fiscal years. City staff told commissioners the software vendor is aware of the issue and the city has implemented interim manual reconciliation procedures.
Commissioner Reuter moved to accept the 2024 audit as presented by Adams Brown; the motion was seconded by Commissioner Barrick and passed 4-0.
No additional fiscal ordinances or budget amendments were adopted as part of the audit acceptance vote. The auditors provided the commission with a corrective action plan and a governance letter detailing the single-audit finding and recommended internal-control improvements.
