As a general rule any "bugs" or their larva that you can see should not be there, the presence of these indicates that your materail is too wet to compost well. Because some CAFOs use fly larva to aid in digesting the large piles of manure produced there are some people that have gotten to thinking that these pests are okay in compost while they are not. There is some thought that these flies are predators of other insects, but the true predator is much smaller than these flies. Most often I have found that when these bugs are present in compost there is also a rather unpleasant odor further indicating that this compost is anaerobically digesting, not good, instead of aerobically digesting, good.

You most likely are seeing soldier fly larva.

OMG, I googled for pictures of soldier fly larva, and thats exactly what they are. Oh how disgusting, I basically cultivated maggots in my compost. I suppose that means I should throw out everything in my bin?

Thanks,
Siliva

Ok, I found some more information and looks like there is nothing wrong with having these in the bin, but I should control moisture, heat and acid levels better.

The upside is that they will help process the material in your bin more quickly. Their presence is really no big deal.

Deanna

Their presence typically means that the compost is too wet.

Black Soldier Fly Larvae are somewhat common in compost piles and its not because they are too wet. Compost is supposed to be moist, but not too damp, and it contains decaying organic material. Its a perfect habitat for BSFL.

The larvae are not bad for the compost and they are not bad for your plants. They are really gross to look at and I would prefer not to see them.

I keep my pile on the dry side... it has lots of dry straw and I rarely add any additional moisture and I still get the occaisonal BSFL mass of goo. Eventually they will hatch and fly away. I wouldn't worry about them and I wouldn't look at them either.

You mentioned not seeing any earth worms. That is not surprising. Earthworms don't really like a warm active pile, they prefer the pile when its cooler and closer to finished compost. I wouldn't worry about lack of worms either.

Here is a link that might be useful: Black Soldier Fly larvae