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Council adopts Resolution 07-2024 waiving GAAP; auditor recommends KMAAG for city size
Summary
The council approved Resolution 07-2024 to waive GAAP reporting and operate under the Kansas Municipal Audit and Accounting Guide (KMAAG), following auditor Danielle Hollingsheads advice that KMAAG is more practical and cost-effective for a city of Lindsborg's size.
Staff explained that the City of Lindsborg has historically operated under the Kansas Municipal Audit and Accounting Guide and that most second-class cities follow KMAAG rather than full GAAP accounting. Staff said Adams Brown auditor Danielle Hollingshead advised that a city this size typically lacks staff capacity to keep pace with new Governmental Accounting Standards Board (GASB) changes and that KMAAG produces a shorter, more cost-effective audit report. "A city your size does not typically have the staffing capacity to accurately keep up with GAAP," Hollingshead said in the staff summary.
Councilmember Rebecca Van Der Wege moved to approve Resolution 07-2024 authorizing the waiver of GAAP accounting for the City of Lindsborg; Councilmember Blaine Heble seconded and the motion passed 6-0 by roll call vote. Staff noted that although a charter ordinance had been used by some cities, the KMAAG Board does not accept a charter ordinance waiver, so the formal council resolution was necessary and will be presented annually at the start of the fiscal year when appropriate.
