Council accepts 2025 audit; auditors issue clean opinion and note two findings

The Cannon Falls City Council accepted the 2025 financial audit presentation on June 16 after hearing Abdo auditors summarize results and next steps.

Tyler C, senior audit manager at Abdo, told the council the firm will issue an unmodified opinion on the city's 2025 financial statements — the clean opinion auditors and the city commonly seek. He said Abdo also performs testing of state‑statute compliance and recorded two matters requiring attention: a recurring internal‑control finding that auditors prepared the financial statements, and a legal‑compliance finding related to missing original receipts for some credit‑card purchases (notably gas cards).

Tyler said the general fund ended 2025 with about $3.9 million and that the fund balance met the city’s policy target (roughly 40–50% of the following year’s budget), noting a $115,000 increase on the year and $150,000 of revenue above budget largely tied to grants and reimbursements. He reviewed debt, capital and enterprise funds and compared Cannon Falls’ metrics to class‑4 peers.

Council thanked both the audit team and city staff for their work on the audit. The council took separate votes to approve the executive governance summary (B1) and the annual financial report (B2); both motions carried on voice votes.

Staff and the auditors said they will continue to work on corrective steps for the findings, including strengthened receipt controls and use of internal fuel‑tracking systems where practical.