Auditors from Arledge & Associates told the Shawnee City Commission that the city’s FY2024 financial statements include an adverse opinion tied to omission of one component unit’s audited balances.

"There are two instances of component units" that changed from prior years, audit partner Kenzie Gorti said, and the adverse opinion relates specifically to balances for the Shawnee Civic and Cultural Development Authority (SCCDA) that were not audited for inclusion in the city’s statements. Gorti said those omitted balances required the adverse modification while the remaining opinion units received unmodified opinions.

The firm also identified three items in the schedule of findings and questioned costs: (1) the omission of SCCDA balances in the report; (2) a prior‑period adjustment needed to include an authority previously excluded; and (3) the timing of electronic filing with the State and Federal Clearinghouse, a repeat finding from prior years. Gorti noted the single audit tested federal programs including ARPA (assistance listing 21.027), the Clean Water State Revolving Fund capitalization grants and disaster grants for public assistance.

Commissioners pressed auditors about the city’s ability to “cure” the finding related to the noncooperative component unit. One commissioner said the city has no legal authority to compel an independent entity to provide audited numbers. "Whenever cities are not able to obtain audited numbers from one of their component units, that has to be excluded," Gorti said.

The auditors provided the required management‑letter items and said they did not encounter disagreements with management on audit matters. Gorti thanked city staff for their cooperation and described next steps, including staff follow‑up on the single‑audit compliance matters and the timing of federal filings. The commission did not take a separate vote on the audit presentation; the report was presented for review and discussion.