Portland City Council accepted the city's Annual Comprehensive Financial Report (ACFR) for the fiscal year ending June 30, 2025, and adopted a related plan of action intended to address material weaknesses identified by outside auditors.

Christopher Hare, council operations policy analyst, summarized the ACFR and the plan; he said the audit was conducted by Baker Tilly and cited Oregon Revised Statutes for filing plans of action with the Secretary of State. Council discussion centered on why material weaknesses persisted: staff and budget representatives (including Ruth Levine, budget director) said the most significant findings were concentrated in PBOT last year and continued at a smaller scale, with additional weaknesses in Parks and the Bureau of Facilities. Staff described causes as staffing constraints, process gaps and incomplete coordination between operating bureaus and central accounting.

Councilors pressed for resources and clearer public engagement in the upcoming budget cycle to ensure the work to address weaknesses is funded and sustained. The council approved acceptance of the report (12 ayes) and separately adopted the plan of action (12 ayes) in the same meeting.

Staff said actions taken and planned include reallocating staff to close out capital assets, enhanced training, creating better reporting connections between bureaus and central accounting and prioritizing resources to resolve the identified problems. The adopted plan of action will be filed with the Oregon Secretary of State as required by statute.