Cannon Falls accepts clean 2024 audit; one recurring internal-control finding noted

CANNON FALLS, Minn. — The Cannon Falls City Council on May 29 voted to accept the city’s 2024 financial statement audit after a presentation from ABDO audit manager Tyler Seaman.

Seaman told the council ABDO was issuing an “unmodified opinion,” commonly referred to as a clean audit, and that testing of applicable Minnesota statutes found no instances of noncompliance. He said the audit included one internal-control finding, described as “preparation of financial statements,” a recurring item the firm often issues when auditors prepare the statements rather than city management.

The audit presentation summarized year-end results and key metrics. The city’s general fund balance ended 2024 at about $3.8 million, which Seaman said is roughly 80% of the city’s 2025 budget — above the council’s fund-balance policy of 40%–50% of the following year’s budget. The general fund increased by about $240,000 in 2024; revenues exceeded budget mainly because of grant receipts, higher investment income and building-permit revenue, while expenditures finished about $40,000 under the final budget.

Seaman reviewed special revenue, capital project and enterprise fund activity. He said the city held roughly $4.2 million in total cash and investments across funds at year-end 2024. Highlights included about $140,000 in state ambulance aid that increased the ambulance fund balance, a near-$400,000 capital charge to the stormwater fund tied to the 2020 Fourth Street and utility project, and a recycling fund balance of about $280,000. Seaman also noted the city has four outstanding debt funds with bonds scheduled to mature by 2034 and discussed callable dates that can limit prepayment options.

Councilmember Jepsen moved to approve the 2024 audit report; Councilmember Chad seconded the motion. The mayor called the vote: “Aye.” The motion carried.

City staff and councilmembers responding to the presentation praised the administration and finance team for the audit results. John (city staff) described the clean opinion and declining debt trends as putting the city in a strong financial position and noted the ongoing need to track pledged revenues, special assessments and callable dates on bonds when planning future budgets.

The council did not direct further formal action at the meeting beyond acceptance of the audit; staff and auditors said they would use the audit information in budget and capital-planning work for 2025 and beyond.