Finance staff outline March audit visit and budget schedule as public raises repeated-audit concerns

Finance staff told the Finance Committee that external auditors will be in the office March 12–14 as the city moves through its annual budget process, and staff confirmed departments have entered their requests into the new Cassell budget system.

The timeline matters because the auditors’ on-site work and a full set of department submissions will shape the draft the council reviews at its April workshops. "They'll be here the twelfth through the fourteenth," Finance staff member Ashley said when announcing the audit visit and the budget workshop schedule for later in April.

Public comment at the meeting focused on the city’s audited financial statements. Resident John Linehan told the committee he reviewed the city's audit report and cited repeated findings, including material weaknesses in cash reconciliation, deficiencies in financial-statement preparation and repeated material audit adjustments. "That is a position that we cannot afford as a city," Linehan said of a recently filled deputy position, and he told the committee, "I do think we need an in house CPA here at the City of Ellsworth." He urged hiring an accountant with accounting credentials to improve internal controls.

Council members and staff answered that the city has made measurable progress over the past 12 months while acknowledging work remains. Councilmember Tammy said the finance operation is "in such a different place" compared with a year ago and credited staff and recent management changes for major improvements. Another councilmember noted the difference between having a CPA and having accounting expertise on staff, saying on the record that the immediate need is accounting capability in the finance office rather than paying a premium for a CPA designation.

Meeting participants discussed staffing continuity in the finance office. Committee members said finance director Nate Moore had been expected to relocate; staff negotiated a remote arrangement so he can assist through the budget season. Meeting discussion described that arrangement as temporary and subject to reevaluation after the budget process.

Staff and council also described practical changes to this year's budget workflow. Departments entered budget requests through Cassell for the first full year, which several department representatives said made it easier to view actuals, compare prior years and make corrections during review. The finance office said printed binders will be provided for the in-person budget workshops and that the final budget book will be uploaded to the city website before the council’s April budget meeting.

Committee members and staff repeatedly emphasized that audit work can highlight lingering problems even while the city’s internal processes improve. Finance staff said they will provide auditors with requested physical documents during the March visit and will work with the audit firm to minimize disruption.

Looking ahead, staff said federally funded projects that factor into the budget — including the Thriving Communities and the Village Partnership Initiative grants and several Community Development Block Grant projects — were not, at the time of the meeting, subject to cancellations. Staff said they had paused spending only briefly while confirming continued eligibility and would proceed once they received formal authorization to spend.

The meeting closed with procedural details for council members: preliminary workshop binders will be printed for in-person workshops; members may request a full printed final book but the finance office plans to distribute an electronic final budget to reduce printing costs.