Audit Services

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Request for Proposals Purchasing Department
Audit Services 73 Harlow Street
Proposal No. P26-38 Bangor, ME 04401
207-992-4282
Issue Date: March 6, 2026
I. Introduction
The City of Bangor (City) requests proposals from qualified independent auditors having sufficient
governmental accounting and auditing experience in performing an audit in accordance with the
specifications outlined in this Request for Proposals (RFP). This request is for fiscal years ending
June 30, 2026, 2027, and 2028. Three (3) additional one (1) year renewal options are
contemplated contingent upon mutual agreement of the parties.
The audit will encompass a financial and compliance examination of the City's Annual
Comprehensive Financial Report (including the School Department). The audit will be conducted
in accordance with auditing standards generally accepted by the United States: the standards for
financial statements contained in Government Auditing Standards issued by the Comptroller
General of the United States; audit requirements of Title 2 U.S. Code of Federal Regulations Part
200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements of Federal
Awards and applicable amendments; Federal Aviation Administration compliance requirements
described in the Passenger Facility Audit Guide for Public Agencies, the Maine Uniform
Accounting and Auditing Practices for Community Agencies, and all other applicable laws and
regulations.
II. General Information
Available at the following web address: www.bangormaine.gov/proposals on the City's website.
By submitting a response to this solicitation, the Proposer accepts the responsibility for
downloading, reading, and bidding by the terms and conditions set forth in the City's "General
Information for Vendors."
In your proposal, please specify whether you currently have, or are in the process of developing,
a domestic violence policy. If you do not have such a policy, let us know if you would like to receive
a copy of the City of Bangor's policy as a reference.
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III. Submission
For consideration, submit the proposal Bid Form in sealed envelope or electronically via
submission methods listed below. The envelope or subject line must be clearly marked as
"Proposal No. P26-38: Audit Services" by 2:00 P.M. on Wednesday, April 1, 2026
Submission of documents can be completed by:
A. Emailing to bids@bangormaine.gov; or
B. Hand Deliver to Customer Service, 73 Harlow Street, Bangor, ME; or
C. US Post Office addressed to City of Bangor-Purchasing Department, 73 Harlow Street,
Bangor, ME 04401; or
D. All Other Delivery Services addressed to City of Bangor-Purchasing Department, 73 Harlow
Street, Bangor, ME 04401.
All submissions should reference "Proposal No. P26-38: Audit Services". Proposals will be
publicly opened at the time stated above in the Paul Bunyan Room (First floor near the side
entrance), in City Hall, 73 Harlow Street, Bangor, ME.
A tabulation of all received proposals will be posted on the City's website as soon as possible after
the opening date. Visit https://www.bangormaine.gov/Bids.aspx for results. The "Show
Closed/Awarded/Cancelled Bids" box must be checked to see the proposal information.
IV. Questions
Any questions must be directed in writing to bids@bangormaine.gov no later than 4:30 P.M.,
Friday, March 13, 2026
The City will provide a response by 4:30 P.M. on Friday March 20, 2026. This response will be in
the form of an addendum, accessible on the City's website. Notifications will be sent when new
addenda are released. To receive these notifications, the City strongly encourages all potential
bidders to register as vendors at www.bangormaine.gov/vendorregistration.
V. Late Proposals
It is the responsibility of the Proposer(s) to see that their proposals have sufficient time to be
received by the Purchasing Department before the submittal deadline. Any proposal, portion of
a proposal, or requested proposal revision received at the City Purchasing Department after the
time and date specified, will be returned to the Proposer unopened.
VI. Withdrawal of Proposals
No Proposer may withdraw their proposal for a period of ninety (90) days from the date of
opening. All proposals shall be subject to acceptance by the City during this period.
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To withdraw a proposal prior to the opening, the Proposer shall request the withdrawal in writing.
All costs associated with the withdrawal (i.e., mailing fees) will be borne by the Proposer.
VII. Rejection
The City reserves the right to reject any proposals, waive any informalities or defects in proposals,
or accept a higher-cost proposal if it is deemed to be in the best interest of the City. The City also
reserves the right to request clarification of any details from the successful Proposer.
VIII. Information for Proposers
A. All Federal and State taxes must be excluded from the proposal price. Upon request, a tax
exemption certificate for the City of Bangor shall be furnished to the successful Proposer.
B. The Bid Form, included with this request, must be completed and returned for a proposal to
be considered.
C. Proposers are required to maintain the following insurance policies throughout the life of the
project and name the City of Bangor as an additional insured where applicable:
1. Worker's Compensation Insurance Statutory
2. Employer's Liability Insurance $500,000 each accident
$500,000 disease - policy unit
$500,000 disease - each employee
3. Comprehensive Automobile Liability $1,000,000 combined, single limit per
accident
4. Commercial & General Liability $1,000,000 combined single limit
$2,000,000 aggregate
5. Professional Liability (Errors & $1,000,000 combined single limit
Omissions) $2,000,000 aggregate
IX. Background
The City of Bangor operates under a charter as amended, providing for a council-manager form
of government with a nine (9)-member City Council. The Charter grants to the City Council all
powers to enact, amend, or repeal rules, ordinances, and resolutions relating to the City's
property, affairs, and government in order to preserve public peace, health, and safety, to give
effect to any vote of the City, and to authorize the issuance of debt. The entire Council adopts an
annual budget. The City Manager is the administrative head of the City and responsible to the
City Council for the administration of all departments.
All departments, including all State and Federal grants, of the City are subject to this audit. The
School department and Cross Insurance Center (Bass Park) have their own separate accounting
systems.
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The accounting and financial functions of the City are centralized at City Hall for all departments,
with the exception of Bass Park and parking facilities, both of which are operated by a third-party
contractor. The School department's accounting and financial functions are accounted for within
a separate accounting system.
City of Bangor ACFR, Uniform Guidance (Single Audit), Passenger Facility Charges, and MAAP
reports and Management letters can be viewed on the City's website:
https://www.bangormaine.gov/281/Finance .
More detailed information on the City and its finances can be found in published reports such as
the Annual Budget and Official Statements, also available at the link required above.
X. Principal Contact
The auditor's principal contact with the City of Bangor will be Stephanie Kimball, Finance Director
(FD), or a designated representative, who will coordinate the assistance to be provided by the
City of Bangor to the auditor.
A list of key personnel with the location of their principal offices (Appendix B) and a list of elected
officials (Appendix C) are attached.
XI. Federal and State Financial Assistance
During the fiscal year ending June 30, 2024 (the last completed audit at the time of this posting),
the City of Bangor expended funds received from federal awards (including passenger facility
charges) in 80 separate grant agreements.
There were 31 separate grant agreements included within the MAAP compliance reports for the
year ending June 30, 2024. The City anticipates similar financial assistance will be received in
subsequent years.
XII. Scope of Services
The City desires the auditor to express an opinion on the fair presentation of its basic financial
statements in conformity with generally accepted accounting principles and procedures
applicable to governmental units.
The auditor is not required to audit the combining and individual fund statements and schedules.
However, the auditor is to provide an opinion on the combining and individual fund financial
statements and supporting schedules based on the auditing procedures applied during the audit
of the basic financial statements taken as a whole. The auditor is not required to audit the
statistical section of the report. In connection with the examination of the records and financial
statements, the auditor shall review the system of internal control, operating procedures, and
compliance with budgetary and legal requirements of the City.
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The auditor shall perform an audit of the School department accounts in accordance with the
requirements of Title 20-A MRSA, Section 6051, which will include examining the Financial Report
of Public Schools submitted to the State Department of Education on Form EF-M-45 for fairness
of presentation.
The auditor shall perform a financial and compliance audit for all Federally assisted programs in
accordance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements of Federal Awards.
The auditor shall perform a compliance audit for all agreements required by the Maine Uniform
Accounting and Auditing Practices for Community Agencies.
The auditor must prepare and file the Municipal Audit Procedural Form and a copy of the auditor's
report with the State Department of Audit within thirty (30) days after completion of the audit.
The auditor shall be responsible for performing certain limited procedures involving required
supplementary information required by the Governmental Accounting Standards Board as
mandated by generally accepted auditing standards.
The City views its engagement with an audit firm as an ongoing professional relationship in which
the firm is expected to provide consultation services during the course of the engagement. As
such, the auditor is expected to consult with the City, as required, on auditing, accounting,
financial reporting, and operating matters as they arise and to provide the City with information
on current developments that would affect the City's financial operations and management.
A. The City's objective is to select the firm best qualified to provide the following:
1. Audit of ACFR.
2. "Single audit" covering the City's Federal and State grants (including Passenger Facility
Charges) for each year as required by the Uniform Guidance.
3. Audits of Agreement required by MAAP.
4. Audit of School Activity Funds.
5. Technical assistance to City personnel on various accounting and reporting issues.
6. Technical assistance and advice to City personnel on specialized financial matters that
arise during the contract period.
B. Following the completion of the audit of the financial statements, the auditor shall issue:
1. Basic Financial Statement Reports: Report on the fair presentation of the basic financial
statements in conformity with generally accepted accounting principles.
2. Uniform Guidance Act Reports:
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a. Report on compliance and internal control over financial reporting and other
matters, based on an audit of financial statements performed in accordance with
Government Auditing Standards.
b. Report on compliance with requirements that could have a direct and material
effect on major programs and on internal control over compliance in accordance
with OMB Circular A-133.
3. MAAP Compliance Reports:
a. Report on compliance with requirements applicable to each major department and
internal control over compliance with department programs in accordance with
Maine Uniform Accounting and Auditing Practices for Community Agencies.
b. A compilation report on schedule of agreement settlement forms (ASFs).
4. School Department: Report on the fair presentation of the School Activity Funds.
5. Passenger Facility Charge (PFC) Program: Report on compliance with requirements
applicable to the PFC Program, internal control over compliance, and schedule of
expenditures of PFC charges described in the Passenger Facility Charge Audit Guide for
Public Agencies, issued by the Federal Aviation Administration.
6. Irregularities and Illegal Acts: The auditor will be required to make an immediate written
report of all irregularities and illegal acts or indications of illegal acts of which they
become aware to the Finance Committee, City Manager, and Finance Director.
7. Management Letter:
a. The engagement should include recommendations to management, prepared by
the audit firm in letter form, which include any findings, observations, opinions,
comments, or recommendations relating to internal control, accounting systems,
data processing, compliance with laws, rules, and regulations, or any other matters
that come to the attention of the auditor during the course of the examination.
b. Such recommendations shall not be construed as special or additional studies but
shall be limited to those usually associated with the study of internal control
systems and procedures as a part of an examination of financial statements. The
recommendations will be discussed with the appropriate City officials prior to
publication.
8. Reporting to the Finance Committee: The auditor shall meet with the City's Finance
Committee to present the results of the audit and assure themselves that the Finance
Committee is informed of the following:
a. The auditor's report on the City's basic financial statements and their responsibility
under generally accepted auditing standards.
b. Significant accounting policies.
c. Management judgments and accounting estimates.
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d. Significant audit adjustments.
e. Other information in documents containing audited financial statements.
f. Disagreements with management.
g. Major issues discussed with management prior to retention.
h. Difficulties encountered in performing the audit.
C. Special Considerations:
1. The City will send its Annual Comprehensive Financial Report (ACFR) during the term of
this engagement to the Government Finance Officers Association of the United States
and Canada for review in their Certificate of Achievement for Excellence in Financial
Reporting program.
2. The City currently anticipates it will prepare one (1) or more official statements in
connection with the sale of debt securities, which will contain the general-purpose
financial statements and the auditor's report thereon. The auditor shall be required, if
requested by the fiscal advisor and/or the underwriter, to issue a "consent and citation
of expertise" as the auditor and any necessary "comfort letters.".
3. The City has determined that the U.S. Department of Health and Human Services will
function as the cognizant agency in accordance with the provisions of the Single Audit
Act of 1984 and U.S. Office of Management and Budget (OMB) Circular A-128, Audits of
State and Local Governments.
4. The Uniform Guidance and MAAP reports are not to be included in the annual financial
report but are to be issued separately.
5. No difficulties are anticipated in implementing and complying with reporting
requirements mandated by GASB; however, the City may require the auditor's
assistance with the implementation of new mandates as they arise.
6. As a part of the overall audit engagement, the City expects to receive from the audit
firm a variety of technical assistance throughout the fiscal year. This assistance shall
include answers to accounting, reporting, or internal control questions.
7. Proposals shall contain provisions for dealing with extraordinary circumstances
discovered during the audit that may require an expansion of audit work beyond that
which was originally planned.
8. In addition, the audit firm may be requested to perform special projects for the City
during the engagement. Because of variations in the demand for additional services,
such work will be contracted for, provided, and billed separately to the City on an hourly
basis. Proposals should describe the types of services available from the firm and the
proposed hourly fees to be charged for such services.
D. Working Paper Retention and Access to Working Papers:
1. The firm shall agree to make available its working papers upon request to meet any City
financial need as well as in accordance with any Federal or State grant provisions. Work
papers and reports must be retained, at the auditor's expense, for a minimum of five
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(5) years from submission of the final audit report, unless the firm is notified in writing
by the City of the need to extend the retention period.
2. In addition, the firm shall respond to reasonable inquiries of successor auditors and
allow successor auditors to review working papers relating to matters of continuing
accounting significance.
XIII. Time Requirements
The following are the proposed time requirements, an alternate timeline will be considered if
deemed necessary:
A. Date Audit May Commence:
1. The City will have adjusted or closed all accounts, will have its records ready for audit,
and Finance Department personnel shall be available to meet with the firm's personnel
ninety (90) days after the end of each fiscal year.
2. The City will also make its records and other financial documents available prior to the
end of the fiscal year so that the firm may begin its preliminary work well before the
close of the fiscal year.
B. Schedule for the Fiscal Year Audits: Each of the following should be completed by the auditor
no later than the dates indicated.
1. Interim Work- All interim work is performed during the months of June through August.
Actual time will be negotiated with the selected Proposer.
2. Detailed Audit Plan- Provide the City with a detailed audit plan and a list of all schedules
to be prepared by the City as soon as possible after the interim work is completed.
3. Field Work- Complete all fieldwork no later than November 30th.
4. Draft Reports- Drafts of the required reports, financial statements, and management
letters are available for review by the FD no later than December 15th.
C. Entrance Conferences, Progress Reporting, and Exit Conferences:
1. The firm shall agree to entrance, progress reporting, and exit conferences to review the
audit program with City officials, as well as to review the City's role and assistance in
the audit process.
2. At a minimum, the following conferences will be held according to the dates indicated
on the schedule:
a. Entrance conference with the FD to discuss prior audit problems and the interim
work to be performed. This meeting will also be used to establish an overall liaison
for the audit and to make arrangements for workspace and other needs of the
auditor during June.
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b. Progress conference with FD to summarize the results of the preliminary review
and to identify the key internal controls or other matters to be tested; dates to be
negotiated with the selected firm at the conclusion of interim work.
c. Progress conference with the FD to discuss the year-end work to be performed
during August.
d. Entrance conference with the FD to commence year-end audit work by the first
(1st) week of October.
e. Exit conference with the FD to summarize the results of the fieldwork and to review
significant findings by November.
3. The auditor shall also provide oral reports on the progress of the audit to the FD at
regular intervals.
4. The partner or manager in charge of the audit shall be available to discuss the reports
required by this RFP with the City's Finance Department staff as required, as well as be
available to attend public meetings at which the audit may be discussed.
D. Final Report Due Date:
1. Finance Department personnel shall prepare trial balances and all required
supplemental schedules by the first (1st) week of October. The auditor shall provide all
recommendations, revisions, and suggestions for improvement to the FD no later than
October 31st. One (1) electronic copy of the auditor's opinion shall be delivered to the
FD no later than December 15th.
2. In addition, an electronic copy of each of the Uniform Guidance Act Reports and MAAP
Compliance Reports shall be delivered to the FD no later than January 31st.
XIV. Assistance to be Provided to the Auditor and Report Preparation
A. Finance Department and Clerical Assistance:
1. Finance Department staff will render all feasible assistance to the auditor and will
respond promptly to requests for information, documentation, and explanations as well
as provide all necessary books and records required by the firm.
2. The preparation of confirmations will be the responsibility of the City.
3. In addition, clerical support will be made available to the auditor, as needed, for the
preparation of routine letters and memoranda.
B. Electronic Data Processing (EDP) Assistance: EDP personnel will be available to provide
systems documentation and explanations. The auditor will not be provided computer time
or the use of the City's computer hardware and software, except for access for making
inquiries to the City's financial systems.
C. Statements and Schedules Prepared by City Staff:
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1. City staff will prepare statements and schedules requested by the auditor as soon as
practical once the information becomes available.
2. The City's trial balance and supporting subsidiary schedules will be available by the first
(1st) week of October.
3. On or before November 15th, City staff will have prepared draft financial statements,
notes, and all required supplementary schedules and statistical data.
D. Work Space: The City will provide the auditor with reasonable work space, desks, chairs,
access to the City's financial system, a photocopier, and internet access required to fulfill
their responsibilities to the City.
E. Report Preparation: Preparation, editing, and printing of the Comprehensive Annual
Financial Report will be the responsibility of the City; however, the auditor is expected to aid
with proofreading and suggestions to improve presentations.
XV. Proposal Requirements
A. Proposals must contain the following information as general information:
1. A master copy (so marked) of a technical proposal and two (2) copies along with an
electronic copy to include the following:
a. Title page showing the RFP's subject, the firm's name, date of the proposal, and the
name, address, telephone number, and email address of the contact person.
b. Table of Contents.
c. A signed letter of transmittal briefly stating the Proposer's understanding of the
work to be performed, the commitment to perform the work within the allotted
time period, a statement why the firm believes itself to be the best qualified to
perform the required services, and a statement that the proposal is a firm and
irrevocable offer for the contract term.
d. A detailed proposal that follows the order set forth in Section XV. Proposal
Requirements; Subsection B. Technical Proposal of this RFP.
e. Price proposal that includes the attached Bid Form with a breakdown of all
associated costs.
B. Technical Proposal:
1. General Requirements:
a. Shall demonstrate the qualifications of the firm and of the particular staff to be
assigned to this engagement as well as an audit approach that will meet the
requirements of this RFP. As such, the substance of the proposal will carry more
weight than the form or manner of presentation.
b. Shall address all the points outlined in this RFP and be prepared simply and
economically, providing a straightforward, concise description of the Proposer's
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