Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Finance topic
No spam. Unsubscribe anytime.
Sterling commission waives GAAP reporting for fiscal year 2025
Summary
The Sterling City Commission unanimously approved a resolution waiving the requirement to prepare financial statements under GAAP for Fiscal Year 2025, citing the city's longstanding use of a modified cash basis and the complexity and cost of GAAP compliance.
The Sterling City Commission on Jan. 5, 2026, approved a resolution waiving the requirement to prepare financial statements under generally accepted accounting principles (GAAP) for Fiscal Year 2025.
City Manager Ian Hutcheson explained that Kansas Statutes Annotated (KSA) 75-1120a(a) generally requires municipalities to use GAAP but allows a governing body to waive the requirement. Hutcheson said the city has historically used a modified cash basis for reporting — tracking cash, certain accounts payable and encumbrances — and that GAAP requires additional reporting of non-cash assets and liabilities, which can be more complex and costly to implement.
City Attorney Scott Bush prepared the resolution language required by statute and had no objection to the recommendation. Commissioner Todd Rowland moved and Commissioner Clint Bundy seconded to approve the waiver; the motion carried, 5-0.
The waiver must be passed for each fiscal year the city elects not to follow GAAP, per the cited statute. No further policy changes or budget adjustments were recorded in the minutes alongside the waiver vote.
