The Bangor City Council's Finance Committee convened on September 22, 2025, to review the fiscal year 2024 audit, revealing significant challenges and areas for improvement in the city's financial management. The meeting featured auditors Marcus Pratt and Jen Connors, who presented findings that highlighted ongoing compliance issues related to new accounting standards and a backlog in financial reconciliations.

The audit process was complicated by the implementation of GASB 96 and GASB 87, which require the city to report subscription-based technology agreements and leases as assets and liabilities. This has created a substantial workload for city staff, as they must continuously identify and document these agreements across various departments, including the airport and school department.

Additionally, the auditors noted that the finance department has struggled with staffing turnover, which has contributed to delays in completing bank reconciliations and other financial tasks. The backlog has compounded issues from the previous year's audit, leading to a cycle of unresolved findings that affect compliance with federal programs.

Despite these challenges, the financial statements received an unmodified opinion, indicating that they fairly represent the city's financial position. However, the audit revealed a material weakness in cash account reconciliations, which remains a concern due to the potential for undetected errors. The auditors emphasized the need for timely reconciliations to enhance the reliability of financial reporting.

The committee's discussions underscored the importance of addressing these issues to improve the city's financial health and accountability. As the city moves forward, it will need to prioritize staffing and training within the finance department to ensure compliance and timely financial management. The implications of these findings are significant, as they affect not only the city's financial integrity but also public trust in local governance.