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Auditor reports 2024 financial statements fairly presented on regulatory basis; city receives one ARPA compliance finding
Summary
Auditors presented the 2024 audit to the Pratt City Commission, reporting an unmodified opinion on the regulatory‑basis statements but an adverse GAAP opinion due to the city’s use of a regulatory basis; auditors noted one ARPA internal‑control finding and recommended corrective actions. The commission approved the audit.
The Pratt City Commission accepted the city auditor’s presentation of the 2024 financial audit on Aug. 18 and voted to approve the audit after questions from commissioners.
Danielle Hollingshed, the lead auditor, said the independent auditor’s report contains an adverse opinion on generally accepted accounting principles (GAAP) because the city elected to present its statements on a regulatory basis rather than GAAP. She said the auditors issued an unmodified opinion on the regulatory‑basis financial statements, indicating the financials are presented fairly under that basis.
Hollingshed said the city’s pooled cash balance as of Dec. 31, 2024, showed an unencumbered cash balance of about $18,597,000, an increase of roughly $6.1 million from the prior year’s $12,482,000. She attributed much of the increase to the city’s electric fund reserves. The audit’s long‑term debt schedule showed roughly $7.6 million in outstanding debt, with certain loans reflected as expected to be paid off in 2040–2041 depending on forgiveness outcomes related to a water supply loan.
The auditors reviewed relevant Kansas statutes and cited three items in a notes section, including a late quarterly financial filing, a one‑day shortfall in a 20‑day notice requirement related to bond payments, and a temporary negative unencumbered cash balance in a federal/state grant fund that was replenished the following January. Hollingshed characterized these as statutory compliance notes rather than severe violations and recommended continued monitoring.
The audit team also performed an examination of ARPA expenditures after the city exceeded $750,000 in federal spending; they identified one compliance finding related to internal controls (timesheet approval and signature procedures) and attached a corrective action plan. The auditors noted no disagreements with management and said the city worked cooperatively during the audit.
Commissioners asked whether the statutory notes had practical consequences; the auditor said she had not seen follow‑up from the state that would cause financial penalties and described the issues as not severe. After discussion the commission moved to approve the 2024 audit by voice vote.
The commission did not record a roll‑call tally in the transcript; the vote was announced as approved.
