The Livingston City Commission accepted the FY25 annual comprehensive financial report on Dec. 3 after auditors from Amatics CPA Group presented the report and answered commissioners' questions.

Morgan Scar of Amatics told the commission the audit provides an "unmodified" or clean opinion — the best opinion an auditor can give. "Based on the audit we performed, the financial statements presented here are materially correct in accordance with generally accepted accounting principles," Scar said.

Auditors reported one instance of statutory noncompliance carried forward from prior years: the impact-fee fund has a larger balance than Montana law's testing thresholds would suggest for charges for services. Scar and staff said the balance is intentional and tied to a planned railroad-crossing project. "It's a compliance finding in that it's out of compliance with Montana code, but not, certainly not accidentally," Scar said, adding the funds were being accumulated for a known infrastructure project.

Commissioners asked clarifying questions about the consequence of the finding and whether state action is likely; staff and auditors said the finding is a reporting/compliance item and that the city's intent and project plan explain the imbalance. No public comments were offered on the audit item, and Commissioner Willich moved to approve the FY25 audit report; the motion carried on a roll-call vote.

What it means: A clean audit opinion indicates the city's financial statements are presented fairly in all material respects. The compliance note calls for continued attention in budgeting and reporting but does not indicate material misstatement or fraud.

Key detail: Staff reported no single-audit requirements for FY25 because federal expenditures did not exceed the single-audit threshold this year. The audit packet includes management's discussion and analysis and a report on internal controls and compliance that flagged the single recurring compliance item related to impact fees.