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Montgomery auditor issues unmodified opinion on FY2025 financials; flags IT security and recurring budget recommendations
Summary
Lauterbach and Eamon delivered an unmodified audit opinion on the Village of Montgomery's FY2025 financial statements and highlighted a positive change in governmental net position, while repeating recommendations on funds-over-budget and adding an IT security recommendation.
The Village of Montgomery received an unmodified independent auditor's opinion on its fiscal year 2025 financial statements, the auditing firm Lauterbach and Eamon told the village board Monday.
Joe Loudant, audit manager for Lauterbach and Eamon, said the village's fiscal year ended April 30, 2025, and the audit field work was completed over the summer. He said the firm issued a clean, unmodified opinion and included required communications such as the annual comprehensive financial report, the management letter and an SAS 114 communication of matters of importance to the board. "We did not have any disagreements this year," Loudant said during his presentation.
The audit showed a net increase in governmental activities of about $2.1 million and a decrease in business-type activities of approximately $1.7 million. Loudant noted the general fund increased about $252,000; the special revenue (TIF No. 2) rose roughly $8.2 million; capital improvements decreased slightly and vehicle/equipment replacement showed no change. Proprietary fund highlights included a $1.7 million decrease in the water fund and a $26,000 increase in refuse.
Loudant drew the board's attention to the management letter, which lists best-practice recommendations. The letter includes one new recommendation on IT security awareness and monitoring of emerging risks and repeats prior recommendations relating to funds over budget and a deficit fund balance. "Management has acknowledged these comments and is working to correct them," Loudant said.
Board members pressed staff on the repeated funds-over-budget note. A trustee asked, "When are we going to look into that?" Finance staff responded that budget adjustments have begun and the village will be more active in implementing them as unexpected expenditures arise.
Loudant also highlighted that the village received an IGFOA certificate of achievement for fiscal year 2024 and reviewed upcoming GASB pronouncements (Nos. 102, 103 and 104) with implementation dates in 2026'27, recommending staff track their applicability.
The board had no formal action on the audit presentation beyond receiving the report and taking questions. Board members and staff said they would follow up on the management letter recommendations and continue monitoring budget adjustments and IT risk mitigation.
