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Auditors give Neosho an unmodified opinion; general fund posts nearly $953,000 increase
Summary
KPM presented the fiscal 2025 audit for Neosho, issuing an unmodified (clean) opinion on the financial statements and on compliance for ARPA federal awards; staff highlighted a $953,006.78 net increase in the general fund and other fund balances. Council had no questions and commended staff.
Wayland Mueller, a manager and CPA with KPM, told the Neosho City Council the firm issued an unmodified ("clean") opinion on the city's fiscal 2025 financial statements and on compliance for the federal program KPM tested, the coronavirus state and local fiscal recovery funds (ARPA). "In our opinion, the financial statements referred to above present fairly in all material respects," Mueller said, calling that the "best opinion" an auditor can give.
Mueller walked the council through highlights from the report, pointing to consolidated fund statements and notes. He said total general-fund revenues were about $8.8 million, up roughly $460,000 from the prior year, and that the general fund recorded a net increase in fund balance of $953,006.78, leaving an ending general-fund balance of about $10.8 million in the audit report. He also reported combined governmental fund balances and business-type results: the water and sewer fund showed increased charges for services and a net increase in net position.
Mueller summarized the management letters that accompanied the audit. His management recommendations emphasized cybersecurity, monitoring water-loss percentage, and preparing for a forthcoming Governmental Accounting Standards Board reporting change (GASB 103) that will change some presentation elements in next year's financial statements. He also presented a governance letter noting no disagreements with management and no significant difficulties encountered during the audit.
Council members thanked city staff for work that produced the clean audit. One council member commended "David and Leslie and the rest of the staff," saying they had steered the city through earlier, less-smooth periods. Mueller closed by offering to answer future questions and noting that his colleague Hayden Dale was observing.
The council took no formal vote on the audit itself during the presentation; the audit and letters were provided for the council's review and record.
