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Audit firm gives Canton City a clean FY2025 opinion; general fund shows operating gap
Summary
Rushton auditors reported an unmodified (clean) opinion on Canton's FY2025 financial statements, citing increased capital net position and liquidity while the general fund showed an operating loss offset by other financing sources; no material internal-control weaknesses were identified.
Rushton's audit team delivered the City of Canton's FY2025 comprehensive financial report and told the council the auditors issued an unmodified opinion on the city's financial statements. "We have issued an unmodified opinion," the presenter said, describing the result as a clean opinion under the applicable auditing standards.
The audit highlighted a rise in the city's net investment in capital assets to about $193 million, up from $178 million the prior year, and reported unrestricted net position of roughly $31 million compared with $36 million the year before. The auditor said the general fund recorded an operating loss of roughly $3.3 million, offset in part by about $935,000 in transfers in and proceeds from debt for fleet purchases.
The auditor reviewed revenue and expenditures by function: property tax revenue rose about 13%, building-permit receipts declined sharply from an unusually high prior year, and public-safety spending accounted for about 55% of expenditures. The audit found no material weaknesses or significant deficiencies in internal control and reported no single-audit findings for federal funds in excess of $1 million.
Auditors noted upcoming Governmental Accounting Standards Board changes (GASB) that will affect future reporting (including items listed for 2026 and beyond) and said the city implemented recent GASB guidance without material restatements. The firm emphasized that certain large items such as pension estimates rely on actuarial assumptions and are inherently subject to estimation.
The council thanked the finance team for the work behind the report and had no further requests for immediate action; the audit was presented for information and review ahead of routine council follow-ups.
