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Auditors give Kirksville a clean opinion on 2025 financials; single-audit finds no material weaknesses
Summary
Sikich issued an unmodified opinion on Kirksville's 2025 annual comprehensive financial report, reporting higher total assets, lower liabilities and improved net position; the single-audit found no significant deficiencies for major federal programs, including airport grants.
Kirksville's external auditor told the City Council on July 13 that the city's 2025 annual comprehensive financial report received a clean (unmodified) audit opinion and that the single-audit covering federal grant activity showed no material weaknesses.
Mike Williams, principal in charge of the city audit for the accounting firm Sikich, presented highlights of the report and its supporting schedules, telling the council the audit's independent auditors' report "in our opinion, the financial statements referred to above present fairly in all material respects." Williams pointed out that total reported assets rose in 2025 compared with 2024 and that long-term liabilities decreased, which together improved the city's overall net financial position.
Why it matters: A clean opinion signals that auditors found the city's financial statements to be materially accurate under accounting standards. Williams cited capital grants — notably airport-improvement grants — as a major driver of the revenue increase for the year and said total federal awards listed in the single-audit were roughly $4.0 million.
Details from the report: Williams described the governmental and proprietary funds, noting the general fund's unassigned balance and messaging in the management's discussion and analysis. He said the utility (water and sewer) funds produced positive operating results and that the pension schedules show roughly a high-90s funding ratio on the disclosure table, with a small net pension liability disclosed in the notes.
The single-audit, required because federal program spending exceeded $1 million, identified the airport improvement program as the major program reviewed. Williams said the firm found no significant deficiencies or material weaknesses in internal control for either the city-wide audit or the federal-program procedures.
What council said: Finance Director Lacey King thanked staff across departments for compiling audit support materials. Council members asked a few clarifying questions about the fund-balance presentation and long-term-debt schedules but raised no objections to the findings.
Next steps: The council accepted the report and auditors made their working papers available for follow-up questions. Williams offered to answer additional questions from council or staff after the meeting.
(Attribution: Mike Williams, principal at Sikich; Lacey King, Finance Director.)
