2016CITY OF BANGOR, MAINE
Reports Required by Government Auditing
Standards, the Uniform Guidance and the Passenger Facility
Charge Audit Guide for Public Agencies
For the Year Ended June 30, 2016
CITY OF BANGOR, MAINE
Reports Required by Government Auditing Standards, the Uniform Guidance
and the Passenger Facility Charge Audit Guide for Public Agencies
For the year ended June 30, 2016
Report Page
Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and
Other Matters Based on an Audit of Financial Statements Performed in Accordance with
Government Auditing Standards 1-2
Independent Auditor’s Report on Compliance for Each Major Federal Program; Report on Internal
Control over Compliance; and Report on Schedule of Expenditures of Federal Awards Required
by the Uniform Guidance 3-5
Schedule of Expenditures of Federal Awards 6-8
Independent Auditor’s Report on Compliance and on Internal Control over Compliance Required by
the Passenger Facility Charge Audit Guide for Public Agencies, Issued by the Federal Aviation
Administration 9-11
Schedule of Expenditures of Passenger Facility Charges 12
Notes to Schedule of Expenditures of Federal Awards and the Schedule of Expenditures of
Passenger Facility Charges 13
Schedule of Findings and Questioned Costs:
Section I -Summary of Auditor's Results 14
Section II -Findings Required to be Reported under Government Auditing Standards 15
Section III -Findings and Questioned Costs for Federal Awards 16
Section IV -Findings and Questioned Costs for Expenditures of the Passenger Facility Charge
Program 17
Section V -Status of Prior Year Findings to be Reported under Government Auditing Standards 18
Section VI -Status of Prior Year Findings and Questioned Costs for Federal Awards 19
Section VII -Status of Prior Year Findings and Questioned Costs for Expenditures of the
Passenger Facility Charge Program 20
1
Certified Public Accountants and Business Consultants
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON
COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
City Council
City of Bangor, Maine
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States,the financial statements of the governmental
activities, the business-type activities, the discretely presented component unit, each major fund, and
the aggregate remaining fund information of the City of Bangor, Maine as of and for the year ended
June 30, 2016,and the related notes to the financial statements,which collectively comprise the City of
Bangor, Maine’s basic financial statements,and have issued our report thereon dated December 28,
2016.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City of Bangor,
Maine's internal control over financial reporting (internal control)to determine the audit procedures
that are appropriate in the circumstances for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the City of Bangor,
Maine’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City of
Bangor, Maine’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent or
detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a material
misstatement of the City’s financial statements will not be prevented,or detected and corrected on a
timely basis. A significant deficiency is a deficiency, or a combination of deficiencies in internal control
that is less severe than a material weakness, yet important enough to merit attention by those charged
with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses may exist that have not been identified.
2
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON
COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS, CONTINUED
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City of Bangor, Maine's financial
statements are free from material misstatement, we performed tests of its compliance with certain
provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have
a direct and material effect on the determination of financial statement amounts. However, providing
an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we
do not express such an opinion. The results of our tests disclosed no instances of noncompliance or
other matters that are required to be reported under Government Auditing Standards.
We noted certain matters that we have reported to management of the City of Bangor, Maine in a
separate letter dated December 28, 2016.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
City’s internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the entity’s internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
December 28, 2016, except for the testing of CFDA #s 20.106 (AIP),
14.238 (Shelter Plus Care), and PFC, which were dated February 1, 2017
South Portland, Maine
3
Certified Public Accountants and Business Consultants
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM; REPORT
ON INTERNAL CONTROL OVER COMPLIANCE; AND REPORT ON SCHEDULE OF EXPENDITURES OF
FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE
City Council
City of Bangor, Maine
Report on Compliance for Each Major Federal Program
We have audited the City of Bangor, Maine’s compliance with the types of compliance requirements
described in the OMB Compliance Supplement that could have a direct and material effect on each of
the City of Bangor, Maine’s major federal programs for the year ended June 30, 2016. The City of
Bangor, Maine’s major federal programs are identified in the summary of auditor’s results section of the
accompanying schedule of findings and questioned costs.
Management’s Responsibility
Management is responsible for compliance with the requirements of federal statutes, regulations,
contracts, and the terms and conditions of federal awards applicable to its federal programs.
Auditor’s Responsibility
Our responsibility is to express an opinion on compliance for each of the City of Bangor, Maine’s major
federal programs based on our audit of the types of compliance requirements referred to above. We
conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; and the requirements of Title 2 U.S.
Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements of Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance
require that we plan and perform the audit to obtain reasonable assurance about whether
noncompliance with the types of compliance requirements referred to above that could have a direct
and material effect on a major federal program occurred. An audit includes examining, on a test basis,
evidence about the City of Bangor, Maine’s compliance with those requirements and performing such
other procedures,as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major
federal program. However, our audit does not provide a legal determination of the City of Bangor,
Maine’s compliance.
Opinion on Each Major Federal Program
In our opinion, the City of Bangor, Maine, complied, in all material respects, with the types of
compliance requirements referred to above that could have a direct and material effect on each of its
major federal programs for the year ended June 30, 2016.
4
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM; REPORT
ON INTERNAL CONTROL OVER COMPLIANCE; AND REPORT ON SCHEDULE OF EXPENDITURES OF
FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE, CONTINUED
Report on Internal Control over Compliance
Management of the City of Bangor, Maine, is responsible for establishing and maintaining effective
internal control over compliance with the types of compliance requirements referred to above. In
planning and performing our audit of compliance, we considered the City of Bangor, Maine’s internal
control over compliance with the types of requirements that could have a direct and material effect on
each major federal program to determine the auditing procedures that are appropriate in the
circumstances for the purpose of expressing an opinion on compliance for each major federal program
and to test and report on internal control over compliance in accordance with the Uniform Guidance,
but not for the purpose of expressing an opinion on the effectiveness of internal control over
compliance. Accordingly, we do not express an opinion on the effectiveness of the City of Bangor,
Maine’s internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their
assigned functions, to prevent, or detect and correct,noncompliance with a type of compliance
requirement of a federal program on a timely basis. A material weakness in internal control over
compliance is a deficiency, or combination of deficiencies, in internal control over compliance,such that
there is a reasonable possibility that material noncompliance with a type of compliance requirement of
a federal program will not be prevented, or detected and corrected,on a timely basis. A significant
deficiency in internal control over compliance is a deficiency, or combination of deficiencies, in internal
control over compliance with a type of compliance requirement of a federal program that is less severe
than a material weakness in internal control over compliance, yet important enough to merit attention
by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over
compliance that might be material weaknesses or significant deficiencies. We did not identify any
deficiencies in internal control over compliance that we consider to be material weaknesses. However,
material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of
the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
5
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM; REPORT
ON INTERNAL CONTROL OVER COMPLIANCE; AND REPORT ON SCHEDULE OF EXPENDITURES OF
FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE, CONTINUED
Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance
We have audited the financial statements of the governmental activities, the business-type activities,
the discretely presented component unit, each major fund, and the aggregate remaining fund
information of the City of Bangor, Maine, as of and for the year ended June 30, 2016, and the related
notes to the financial statements, which collectively comprise the City of Bangor, Maine’s basic financial
statements. We issued our report thereon dated December 28, 2016, which contained unmodified
opinions on those financial statements. Our audit was conducted for the purpose of forming opinions
on the financial statements that collectively comprise the basic financial statements. The accompanying
schedule of expenditures of federal awards is presented for purposes of additional analysis as required
by the Uniform Guidance and is not a required part of the basic financial statements. Such information
is the responsibility of management and was derived from and relates directly to the underlying
accounting and other records used to prepare the basic financial statements. The information has been
subjected to the auditing procedures applied in the audit of the financial statements and certain
additional procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or to the basic financial
statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the schedule of expenditures of
federal awards is fairly stated in all material respects in relation to the basic financial statements as a
whole.
December 28, 2016, except for the testing of CFDA #s 20.106 (AIP)
and 14.238 (Shelter Plus Care), which were dated February 1, 2017
South Portland, Maine
CITY OF BANGOR, MAINE
Schedule of Expenditures of Federal Awards
For year ended June 30, 2016
Federal Pass-through/CFDA/Passed
CFDA Grantor Cluster Through to
Federal Awards Number Number Expenditures Totals Subrecipients
Department of Agriculture:
Passed through the Maine Department of Education:
Child Nutrition Cluster:
School Breakfast Program 10.553 3014 187,222$ -
Food Distribution - Food Donation Program 10.555 3024 55,641 -
School Lunch Program 10.555 3024 762,107 -
Total Child Nutrition Cluster 1,004,970 -
Fresh Fruits and Veggies 10.582 3028 71,206 -
Passed through the Maine Department of Health and Human Services:-
WIC 15-168 Administration 10.557 CDC-15-168 181,571 -
WIC 15-168 Food 10.557 CDC-15-168 662,789 -
WIC 16-168 Administration 10.557 CDC 16-168 405,392 -
WIC 16-168 Food 10.557 CDC 16-168 1,534,807 2,784,559 -
Passed through the Maine Bureau of Health:-
Supplemental Nutrition Assistance Program 10.561 OFI 15-351 39,642 -
Supplemental Nutrition Assistance Program 10.561 OFI 16-351 119,817 159,459 -
Total Department of Agriculture 4,020,194
Department of Housing and Urban Development:
Community Development Block Grants 14.218 MC-23-0004 1,011,790 -
Shelter Plus Care:
ME 0082C1T011100 TRA 14.238 N/A 3,192 -
ME 0029L1T001407 TRA 14.238 N/A 220,856 -
ME 0029L1T001508 TRA 14.238 N/A 78,273 -
ME 0028L1T001306 TRA 14.238 N/A 73,549 -
ME 0028L1T001508 TRA 14.238 N/A 311,365 -
ME 0026L1T001306 PRA 14.238 N/A 51,950 -
ME 0026L1T0101407 PRA 14.238 N/A 74,652 -
ME 0092L1T001302 PRA 14.238 N/A 7,047 -
ME 0092L1T001403 PRA 14.238 N/A 12,137 -
ME0083C1T011100 TRA 14.238 N/A 4,739 837,760 -
Total Department of Housing and Urban Development 1,849,550
Department of Justice:
Edward Byrne Memorial Program 16.738 2015-DJ-BX-0564 23,865 9,979
Total Department of Justice 23,865
See accompanying notes to schedule of expenditures of federal awards.6
CITY OF BANGOR, MAINE
Schedule of Expenditures of Federal Awards, Continued
For year ended June 30, 2016
Federal Pass-through/CFDA/Passed
CFDA Grantor Cluster Through to
Federal Awards Number Number Expenditures Totals Subrecipients
Department of Transportation:
Airport Improvement Plan No. 66 20.106 3-23-0005-66 2,048,712$ -
Airport Improvement Plan No. 67 20.106 3-23-0005-67 1,240,393 -
Airport Improvement Plan No. 70 20.106 3-23-0005-70 138,110 -
Airport Improvement Plan No. 58 20.106 3-23-0005-58 30,024 -
Airport Improvement Plan No. 59 20.106 3-23-0005-59 1,522 -
Airport Improvement Plan No. 62 20.106 3-23-0005-62 33,240 -
Airport Improvement Plan No. 61 20.106 3-23-0005-61 2,154 -
Airport Improvement Plan No. 63 20.106 3-23-0005-63 34,796 -
Airport Improvement Plan No. 65 20.106 3-23-0005-65 160,289 -
Airport Improvement Plan No. 68 20.106 3-23-0005-68 159,309 -
Airport Improvement Plan No. 69 20.106 3-23-0005-69 1,325,417 5,173,966 -
Federal Transit Cluster:
Federal Transit - Operating 20.507 ME904211 310,000 -
Federal Transit - Operating 20.507 ME2016015 386,000 -
Federal Transit - Operating PM 20.507 ME2016015 117,500 -
Federal Transit - Operating ADA 20.507 ME2016015 220,000 -
Bus and Bus Facilities Formula Program 20.528 ME2016011 11,034 -
Total Federal Transit Cluster 1,044,534
Passed through the Maine Department of Transportation:
Highway Planning and Construction (Harlow/Cumberland)20.205 WIN 18577, CSN TBD 2,052 -
Highway Planning and Construction (Hammond St Resurfacing)20.205 PIN 18578, CSN 33906 2,925 -
Highway Planning and Construction (Penobscot Bridge Signals)20.205 PIN 19441, CSN TBD 29,291 -
Highway Planning and Construction (Griffin/Burleigh/Broadway)20.205 WIN 18579, CSN TBD 1,992 -
Highway Planning and Construction (Hogan/Stillwater Right Turn) 20.205 PIN 18486.10, CSN 32818 2,714 -
Highway Planning and Construction (Hogan/Bgr Mall Blvd Right Turn)20.205 PIN 18486, CSN 32821 8,996 -
Highway Planning and Construction (Broadway)20.205 PIN 20401, CSN 33908 699,332 -
Highway Planning and Construction (Union-Griffin to Vermont)20.205 WIN18640, CSN TBD 7,114 -
Highway Planning and Construction (Union - East of Vermont)20.205 WIN18642, CSN TBD 6,385 -
Highway Planning and Construction (Main St. Safety Improvements)20.205 PIN 18448. CSN 32679 408,575 -
Highway Planning and Construction (Main St Cedar/Patten)20.205 PIN 20392, CSN TBD 162,060 -
Highway Planning and Construction (Union/Main to Hammond)20.205 PIN 20574, CSN 32640 341,611 -
Highway Planning and Construction (Ohio/Hammond Intersection)20.205 PIN 20393, CSN 32627 1,737 -
Highway Planning and Construction (Main/Dutton to Patten)20.205 PIN 18381, CSN TBD 176,022 -
Highway Planning and Construction (Hogan Road Sidewalk)20.205 TAP-2269, CSN 33829 5,529 1,856,335 -
Safety Conference 20.505 PIN 19615, CSN 34095 631 -
Total Department of Transportation 8,075,466
See accompanying notes to schedule of expenditures of federal awards.7
Federal Pass-through/CFDA/Passed
CFDA Grantor Cluster Through to
Federal Awards Number Number Expenditures Totals Subrecipients
Environmental Protection Agency:
Brownfields Assessment and Cleanup 66.818 N/A 67,326$ -
Passed through Maine Department of
Economic Development:
Brownfields Revolving Loan 14.228 013-19A-0587-89-6331 103,500 -
Passed through Maine Department of
Environmental Protection:
NPS - Sucker Brook (7604)66.460 2014PT14 36,120 -
Performance Partnership Grant (Capehart)66.605 2015RT01 10,840 -
Passed through the State Revolving Loan Fund Program:
Combined Sewer Overflow 66.458 N/A 919,537 -
Total Environmental Protection Agency 1,137,323
Department of Education:
Passed through the Maine Department of Education:
Adult Basic Education 84.002 6296 52,448 -
Title 1A 84.010 3107 1,395,346 -
Title 1A Continuous Improvement 84.010 3106 5,832 1,401,178 -
Impact Aid 84.041 2012 30,037 -
21st Century 84.287 3356 115,247 -
Title IIA 84.367 3042 271,451 -
Special Education Cluster:
Special Education - Grants to Local States 84.027 3046 1,008,150 -
Preschool 84.173 6247 19,500 -
Total Special Education Cluster 1,027,650
Total Department of Education 2,898,011
Department of Health & Human Services:
Substance Abuse and Mental Health Services Administration:
Drug-Free Communities Support Program 93.276 5H79SP018689-03 31,200 -
Drug-Free Communities Support Program 93.276 5H79SP018689-02 69,902 101,102 -
Passed through Eastern Maine Healthcare:
Partnerships to Improve Comm Health 93.331 1U58DP005930 12,573 -
Partnerships to Improve Comm Health 93.331 5NU58DP005930 26,382 38,955 -
Passed through the Maine Bureau of Health:
Sodium Reduction 93.082 CDC 15-1049 35,331 18,473
Sodium Reduction 93.082 CDC 16-1049 84,590 119,921 36,136
In-home Asthma 93.070 CDC 16-3057 97,509 -
Partnerships for Success 93.243 OSA 16-414 75,660 48,505
HMP Prevention 93.243 OSA 15-414 12,818 88,478 5,179
Healthy Maine Partnership 93.959 CDC 16-337 68,943 53,334
Prevention 93.959 OSA 16-154 13,047 81,990 -
Total Department of Health & Human Services 527,955
Department of Homeland Security:
Law Enforcement Reimbursement Program 97.090 HSTS0213HSLR008 66,995 -
Law Enforcement Reimbursement Program 97.090 HSTS0216HSLR711 19,930 86,925 -
NEDCTP (8713)97.072 HSTS0215HNCP408 124,850 -
SAFER Grant 97.083 EMW-2013-FH-00666 215,245 -
Passed through the Maine Emergency Management Agency:-
Homeland Security Grant Program (7911)97.067 N/A 164,851 -
Homeland Security Grant Program (7907)97.067 N/A 21,139 185,990 -
Total Department of Homeland Security 613,010
Total Federal Awards 19,145,374$
See accompanying notes to schedule of expenditures of federal awards.
CITY OF BANGOR, MAINE
Schedule of Expenditures of Federal Awards, Continued
For year ended June 30, 2016
8
9
Certified Public Accountants and Business Consultants
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER
COMPLIANCE REQUIRED BY THE PASSENGER FACILITY CHARGE AUDIT GUIDE FOR PUBLIC AGENCIES,
ISSUED BY THE FEDERAL AVIATION ADMINISTRATION
City Council
City of Bangor, Maine
Report on Compliance
We have audited the City of Bangor, Maine’s compliance with the types of compliance requirements
described in the Passenger Facility Charge Audit Guide for Public Agencies, issued by the Federal
Aviation Administration (Guide) for its passenger facility charge program for the year ended June 30,
2016.
Management’s Responsibility
Management is responsible for compliance with the requirements of laws, regulations, and contracts
applicable to the passenger facility charge program.
Auditor’s Responsibility
Our responsibility is to express an opinion on compliance for the City of Bangor, Maine’s passenger
facility charge program based on our audit of the types of compliance requirements referred to above.
We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; and the Guide. Those standards and
the Guide require that we plan and perform the audit to obtain reasonable assurance about whether
noncompliance with the types of compliance requirements referred to above that could have a direct
and material effect on the passenger facility charge program occurred. An audit includes examining, on
a test basis, evidence about the City of Bangor, Maine’s compliance with those requirements and
performing such other procedures,as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for the passenger
facility charge program. However, our audit does not provide legal determination of the City of Bangor,
Maine’s compliance.
Opinion on the Passenger Facility Charge Program
In our opinion, the City of Bangor, Maine, complied, in all material respects, with the types of
compliance requirements referred to above that could have a direct and material effect on the
passenger facility charge program for the year ended June 30, 2016.
10
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER
COMPLIANCE REQUIRED BY THE PASSENGER FACILITY CHARGE AUDIT GUIDE FOR PUBLIC AGENCIES,
ISSUED BY THE FEDERAL AVIATION ADMINISTRATION, CONTINUED
Report on Internal Control over Compliance
Management of the City of Bangor, Maine, is responsible for establishing and maintaining effective
internal control over compliance with the types of compliance requirements referred to above. In
planning and performing our audit of compliance, we considered the City of Bangor, Maine’s internal
control over compliance with the types of requirements that could have a direct and material effect on
the passenger facility charge program to determine the auditing procedures that are appropriate in the
circumstances for the purpose of expressing an opinion on compliance for the passenger facility charge
program and to test and report on internal control over compliance in accordance with the Guide, but
not for the purpose of expressing an opinion on the effectiveness of internal control over compliance.
Accordingly, we do not express an opinion on the effectiveness of the City of Bangor, Maine’s internal
control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their
assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance
requirement of the passenger facility charge program on a timely basis. A material weakness in internal
control over compliance is a deficiency, or a combination of deficiencies, in internal control over
compliance, such that there is a reasonable possibility that material noncompliance with a type of
compliance requirement of the passenger facility charge program will not be prevented, or detected
and corrected on a timely basis. A significant deficiency in internal control over compliance is a
deficiency, or combination of deficiencies, in internal control over compliance with a type of compliance
requirement of the passenger facility charge program that is less severe than a material weakness in
internal control over compliance, yet important enough to merit attention by those charged with
governance.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over
compliance that might be material weaknesses or significant deficiencies. We did not identify any
deficiencies in internal control over compliance that we consider to be material weaknesses. However,
material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of
the Guide. Accordingly, this report is not suitable for any other purpose.
11
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER
COMPLIANCE REQUIRED BY THE PASSENGER FACILITY CHARGE AUDIT GUIDE FOR PUBLIC AGENCIES,
ISSUED BY THE FEDERAL AVIATION ADMINISTRATION, CONTINUED
Report on Schedule of Expenditures of Passenger Facility Charges Required by the Guide
We have audited the financial statements of the governmental activities, the business-type activities,
the discretely presented component unit, each major fund, and the aggregate remaining fund
information of the City of Bangor, Maine as of and for the year ended June 30, 2016, and the related
notes to the financial statements, which collectively comprise the City of Bangor, Maine’s basic financial
statements. We issued our report thereon dated December 28, 2016, which contained unmodified
opinions on those financial statements. Our audit was conducted for the purpose of forming opinions
on the financial statements that collectively comprise the basic financial statements. The accompanying
schedule of expenditures of passenger facility charges is presented for purposes of additional analysis as
specified in the Guide, and is not a required part of the basic financial statements. Such information is
the responsibility of management and was derived from and relates directly to the underlying
accounting and other records used to prepare the basic financial statements. The information has been
subjected to the auditing procedures applied in the audit of the financial statements and certain
additional procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or to the basic financial
statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the schedule of expenditures of
passenger facility charges is fairly stated in all material respects in relation to the basic financial
statements as a whole.
February 1, 2017
South Portland, Maine
CITY OF BANGOR, MAINE
Schedule of Expenditures of Passenger Facility ChargesFor the Year and Each Quarter Within the Year Ended June 30, 2016
Memorandum Memorandum
Only Only
Cumulative Quarter Ended Quarter Ended Cumulative
Approved Amounts Total September 30,December 31,Quarter Ended Quarter Ended Year Ended Totals
Impose and Use June 30, 2015 2015 2015 March 31, 2016 June 30, 2016 June 30, 2016 June 30, 2016
95-01-C-00-BGR (as amended)
Passenger facility charge revenue and interest $8,961,006 7,627,512 - - - - - 7,627,512
Expenditures:
Reconstruct Domestic Terminal Apron - South 2,301,222 2,301,222 - - - - - 2,301,222
Reconstruct Domestic Terminal Apron - North 1,070,596 937,451 - - - - - 937,451
Reconstruct International Terminal Apron - North 3,464,415 2,213,478 - - - - - 2,213,478
Reconstruct Commuter Apron Area 2,124,773 2,175,361 - - - - - 2,175,361
Total expenditures $8,961,006 7,627,512 - - - - - 7,627,512
10-02-C-00-BGR
Passenger facility charge revenue and interest $1,998,100 1,894,542 - - - - - 1,894,542
Expenditures:
PFC application assistance 23,100 23,100 - - - - - 23,100
Snow removal equipment 1,975,000 1,871,442 - - - - - 1,871,442
Total expenditures $1,998,100 1,894,542 - - - - - 1,894,542
12-03-C-00-BGR
Passenger facility charge revenue and interest $2,576,497 2,576,497 - - - - 2,576,497
Expenditures:
Electrical Improvement 604,797 604,797 - - - - - 604,797
Terminal Renovations 1,928,000 1,381,458 162,777 174,851 48,160 107,210 492,998 1,874,456
PFC Application Costs 43,700 - - - - - - -
Total expenditures $2,576,497 1,986,255 162,777 174,851 48,160 107,210 492,998 2,479,253
14-04-C-00-BGR
Passenger facility charge revenue and interest $3,000,000 768,868 297,365 199,175 178,352 232,481 907,373 1,676,241
Expenditures:
Terminal Building Renovations 2,950,400 1,172,226 741,329 573,243 154,275 237,030 1,705,877 2,878,103
PFC Application Costs 49,600 - - - - - - -
Total expenditures $3,000,000 1,172,226 741,329 573,243 154,275 237,030 1,705,877 2,878,103
12
13
CITY OF BANGOR, MAINE
Notes to Schedule of Expenditures of Federal Awards
and the Schedule of Expenditures of Passenger Facility Charges
June 30, 2016
PURPOSE OF THE SCHEDULE
Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (Uniform Guidance), and the Passenger Facility Charge Audit Guide for
Public Agencies require a Schedule of Expenditures of Federal Awards and a Schedule of Expenditures of
Passenger Facility Charges showing total expenditures for each federal award program as identified in the
Catalog of Federal Domestic Assistance (CFDA)and each passenger facility charge program.
SIGNIFICANT ACCOUNTING POLICIES
A.Reporting Entity -The accompanying schedule includes all federal award programs and passenger facility
charge programs of the City of Bangor, Maine for the fiscal year ended June 30, 2016. The reporting entity
is defined in notes to basic financial statements of the City of Bangor, Maine.
B.Basis of Presentation -The information in the accompanying schedule of expenditures of federal awards
and the schedule of expenditures of passenger facility charges is presented in accordance with the Uniform
Guidance and the Audit Guide for Public Agencies.
1.Pursuant to the Uniform Guidance, federal awards are defined as assistance provided by a federal
agency, either directly or indirectly, in the form of grants, contracts, cooperative agreements, loans,
loan guarantees, property, interest subsidies, insurance or direct appropriations.
2.Major Programs -The Uniform Guidance establishes the level of expenditures or expenses to be used
in defining major federal award programs. Major programs for the City of Bangor, Maine are identified
in the summary of auditor’s results in the schedule of findings and questioned costs.
3.The passenger facility charge programs are defined by the Federal Aviation Administration’s Record of
Decision for each program.
C.Basis of Accounting -The information presented in the schedule of expenditures of federal awards is
presented on the modified accrual basis of accounting, which is consistent with the reporting in the City's
fund financial statements. The schedule of expenditures of passenger facility charges is presented on the
cash basis of accounting.
D. During the fiscal year, the City had some grants that were not completely expended and the unspent funds
were returned to the awarding or pass-through agencies. The amounts returned to the agencies have
been excluded from current year expenditures.
E. Indirect Cost Rate -The City of Bangor, Maine has elected not to use the 10-percent de minimus indirect
cost rate allowed under the Uniform Guidance.
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CITY OF BANGOR, MAINE
Schedule of Findings and Questioned Costs
For the year ended June 30, 2016
Section I -Summary of Auditor's Results
Financial Statements
Type of auditor’s report issued:Unmodified
Internal control over financial reporting:
Material weaknesses identified?No
Significant deficiencies identified?None reported
Noncompliance material to financial statements noted?No
Federal Awards
Internal Control over major programs:
Material weaknesses identified?No
Significant deficiencies identified?None reported
Type of auditor’s report issued on compliance
for major programs:Unmodified
Any audit findings disclosed that are required
to be reported in accordance with
the Uniform Guidance, Section 200.516?No
Identification of major programs:
CFDA Numbers Name of Federal Program or Cluster
10.557 WIC -Nutrition Program
10.553 –10.555 Child Nutrition Cluster
14.238 Shelter Plus Care
20.106 Airport Improvement Program
Dollar threshold used to distinguish
between Type A and Type B programs:$750,000
Auditee qualified as low-risk auditee?Yes
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CITY OF BANGOR, MAINE
Schedule of Findings and Questioned Costs, Continued
Section II -Findings Required to be Reported Under Government Auditing Standards
None
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CITY OF BANGOR, MAINE
Schedule of Findings and Questioned Costs, Continued
Section III -Findings and Questioned Costs for Federal Awards
None
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CITY OF BANGOR, MAINE
Schedule Findings and Questioned Costs, Continued
Section IV -Findings and Questioned Costs for Expenditures of the Passenger Facility Charge Program
None
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CITY OF BANGOR, MAINE
Schedule of Findings and Questioned Costs, Continued
Section V -Status of Prior Year Findings to be Reported under Government Auditing Standards
None
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CITY OF BANGOR, MAINE
Schedule of Findings and Questioned Costs, Continued
Section VI -Status of Prior Year Findings and Questioned Costs for Federal Awards
None
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CITY OF BANGOR, MAINE
Schedule of Findings and Questioned Costs, Continued
Section VII -Status of Prior Year Findings and Questioned Costs for Expenditures of the Passenger Facility
Charge Program
None