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Hutchinson utility commission accepts 2025 audit, auditors flag upcoming GASB reporting changes
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Summary
The Hutchinson Utility Commission accepted an unqualified 2025 financial audit after an auditors'9 presentation noting fair presentation of the commission'9s financial statements, changes in cash and capital spending, improved pension funding and forthcoming GASB reporting standard updates.
The Hutchinson Utility Commission on Thursday accepted an unqualified audit of its 2025 financial statements after a presentation by auditor Justin McGraw.
McGraw told commissioners the independent audit opinion is that the commission'9s financial statements "are presented fairly" and can be relied on for assessing performance and decision making. He said current assets declined in 2025 as cash was spent on capital work in the electric and gas systems, while net capital assets rose after transformer and substation projects, gas-main improvements and equipment purchases.
McGraw said long-term liabilities fell in 2025 as scheduled debt payments continued and the commission'9s net pension liability decreased, noting the pension plan funding improved from the prior year. He also reviewed nonoperating items and a 2024 reimbursement relating to Heartland Corn that made 2024 an outlier.
The auditor warned commissioners to prepare for two accounting standards changes taking effect in 2026: GASB 103 (financial reporting model improvements) and GASB 104 (capital-assets disclosures). McGraw said GASB 103 will refine management'9s discussion and analysis and change classifications between operating and nonoperating items; GASB 104 will require additional disclosure when governments intend to sell capital assets within 12 months, including fair-value information.
After a short question-and-answer period, Commissioner Matt moved to approve the financial audit and Commissioner Tom seconded; the motion carried by voice vote.
The commission also received the auditor'9s management letter, which highlighted implementation items and encouraged staff to review classification and disclosure changes ahead of the 2026 reporting cycle.
The commission'9s next steps include monitoring how the new GASB guidance affects presentation and disclosure in its 2026 financial statements and integrating recommended adjustments from the management letter into upcoming reporting.
