Mold and flies in compost?

Is having mold or flies in your compost normal? every couple days i'll go out there to mix it and there will often be a layer of white fuzz across the top. and theres always flies, or maggots in it, is this normal? Sometimes i get mushrooms too, which is kinda cool, but is this normal? good/bad? Is it too wet? would adding paper help? we dont really have alot of leaves in our yard, and we have dogs, so we just mulch the gr clippings and leave em on the lawn.. So our compost is mostly from our rabbit litter (cedar chips and rabbit waste) and random kitchen scraps when my fiance remembers to save them. If its too wet would adding paper help? what is the best way to add it? we have a paper shredder but it does confetti cut which i read somewhere isn't good? would it be better to rip it in strips? or ball it up? (would be a great job for our 5 year old cousin) Oh, and our compost is in a large metal trash can with a bunch of holes put in it. Any advice would be incredibly helpful!