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Independent auditor: regulatory-basis statements fair; not GAAP-compliant
Summary
Jarred, Gilmore & Phillips presented the City of Gas’s 2024 audit, issuing an adverse opinion under U.S. GAAP but an unmodified opinion on the Kansas Municipal Audit and Accounting Guide regulatory basis; the city reported $720,031.88 in cash and disclosed a $137,140 KPERS liability.
Jarred, Gilmore & Phillips, PA presented the City of Gas independent auditor’s report dated June 26, 2025, saying the city’s financial statements do not conform to U.S. generally accepted accounting principles (GAAP) because they were prepared on the Kansas Municipal Audit and Accounting Guide (KMAAG) regulatory basis. The firm issued an adverse opinion on GAAP but an unmodified opinion on the regulatory basis the city used.
The auditor reported the city’s total cash and investments at $720,031.88 and provided fund-level detail: the general fund ended the year with $225,049.15 unencumbered cash, and the report separately lists water, sewer, refuse and trust fund balances. The filing discloses the City’s proportionate share of the Kansas Public Employees Retirement System collective net pension liability at $137,140 and notes the City’s pension contributions for 2024 totaled $15,551.14. The report also estimates a liability for earned but unused annual leave of $4,423.46.
The audit explains the difference between the regulatory basis and GAAP and says those differences are presumed to be material but are a result of the basis of accounting the City adopted under K.S.A. 75-1120a(c). The auditors described their responsibilities under generally accepted auditing standards and noted that their work included tests of records, internal control consideration and evaluation of whether events raise substantial doubt about the city’s ability to continue as a going concern.
Jarred, Gilmore & Phillips also provided supplementary schedules, budget comparisons and notes, and the report states the municipal investment pool holdings, interfund transfers, and other required disclosures. The audit packet and financial statements are signed by the firm and dated June 26, 2025.
The audit materials were provided to the council in the July 8, 2025 meeting packet; the firm also assisted with drafting the city’s 2026 budget documents included in the same packet.
