Auditor gives Sedalia clean opinion but flags internal-control issues and single-audit findings

Amanda Schultz, an audit partner at Williams Keepers, told the Sedalia City Council on Sept. 16 that the firm issued an unmodified (clean) opinion on the city's audited financial statements for the fiscal year ended March 31, 2025.

"We issue an unmodified or a clean opinion on the city's financial statements," Schultz said, noting that management is ultimately responsible for the statements but auditors apply procedures to form that opinion.

Schultz said the city required a single audit this year because it received and spent more than $750,000 in federal grant funding; the firm identified approximately $3,500,000 in federal grant expenditures during FY2025, the majority from the Coronavirus State and Local Fiscal Relief Funds. Williams Keepers issued a clean opinion on compliance for the single audit.

The auditors also reported two significant deficiencies in the management letter. One is a continuing recommendation tied to the auditor-assisted preparation of the financial statements; Schultz said the firm frequently proposes year-end accruals and adjustments and recommended the city post more adjustments before audit time to reduce that reliance. The second is a current-year finding related to segregation of duties: manual journal entries can be proposed, posted, reviewed and approved by a single individual, which the auditors identified as a control weakness.

"We did not identify any material weaknesses," Schultz told council, and she thanked city staff for facilitating a timely audit.

Schultz also discussed implementation of new Governmental Accounting Standards Board (GASB) statements: GASB 100 (accounting changes and error corrections) had little impact, while GASB 101 (compensated absences) increased the city's reported liability by changing how leave usage is measured. The auditors worked with city personnel on calculations and noted the compensated-absences liability will need recalculation each year.

Council members had no further questions after the presentation. Williams Keepers placed the detailed reports and the management letter in the council packet for review.

Provenance (selected evidence excerpts)

- Topic intro: Amanda Schultz introduces the audit, the opinion letter and the audited financial statements (excerpt around s=1690.20–1759.63).

- Topic finish: Schultz summarizes findings and invites questions (excerpt around s=2363.79–2376.01).

Speakers (attributed in this article)

- Amanda Schultz, Audit Partner, Williams Keepers (business) — presented the FY2025 audit results and management letter.

- Boggess (Chairwoman, Finance Administration Committee) (government) — introduced the audit item to council.

- Jessica (city staff) (government) — referenced by the auditor as assisting with audit calculations and year-end entries.

- Jason (city staff) (government) — referenced by the auditor as part of management support during the audit.

Authorities referenced

- GASB Statement No. 100 — accounting changes and error corrections (mentioned by auditors).

- GASB Statement No. 101 — accounting for compensated absences (mentioned by auditors; increased reported liability).

Clarifying details

- Single-audit threshold: $750,000 in federal grant expenditures triggers a single audit; the auditor reported approximately $3,500,000 in federal grant spending during FY2025, primarily Coronavirus State and Local Fiscal Relief Funds.

- Management letter findings: two significant deficiencies (1) auditor-assisted preparation of financial statements; (2) segregation of duties for manual journal entries. No material weaknesses were identified.

Proper names

[{"name":"Williams Keepers","type":"business"},{"name":"GASB (Governmental Accounting Standards Board)","type":"other"}]

Searchable tags

["audit","finance","GASB","single_audit","Williams_Keepers","Sedalia"]