PDF Signed Federal Single Audit Report

TOWN OF WATERFORD, CONNECTICUT 
 
FEDERAL SINGLE AUDIT REPORT 
 
JUNE 30, 2022 
 
 

TOWN OF WATERFORD, CONNECTICUT 
TABLE OF CONTENTS 
JUNE 30, 2022 
 
INDEPENDENT AUDITORS’ 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 
1 
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
4 
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
6 
INDEPENDENT AUDITORS’ 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 
7 
SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
9 
 
 

 
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(1) 
 
INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR 
FEDERAL PROGRAM, REPORT ON INTERNAL CONTROL OVER COMPLIANCE,  
AND REPORT ON THE SCHEDULE OF EXPENDITURES OF  
FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE 
 
 
Board of Finance  
Town of Waterford, Connecticut 
 
Report on Compliance for Each Major Federal Program 
Opinion on Each Major Federal Program 
We have audited the Town of Waterford, Connecticut’s compliance with the types of compliance 
requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct 
and material effect on each of the Town of Waterford, Connecticut’s major federal programs for the 
year ended June 30, 2022. The Town of Waterford, Connecticut’s major federal programs are identified 
in the summary of auditors’ results section of the accompanying schedule of findings and questioned 
costs. 
 
In our opinion, the Town of Waterford, Connecticut complied, in all material respects, with the 
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, 2022. 
 
Basis for Opinion on Each Major Federal Program 
We conducted our audit of compliance in accordance with auditing standards generally accepted in the 
United States of America (GAAS); the standards applicable to financial audits contained in Government 
Auditing Standards issued by the Comptroller General of the United States; and the audit requirements 
of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost 
Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under 
those standards and the Uniform Guidance are further described in the Auditors’ Responsibilities for the 
Audit of Compliance section of our report. 
 
We are required to be independent of the Town of Waterford, Connecticut and to meet our other ethical 
responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that 
the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on 
compliance for each major federal program. Our audit does not provide a legal determination of the 
Town of Waterford, Connecticut’s compliance with the compliance requirements referred to above. 
 
Responsibilities of Management for Compliance 
Management is responsible for compliance with the requirements referred to above and for the design, 
implementation, and maintenance of effective internal control over compliance with the requirements of 
laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the 
Town of Waterford, Connecticut’s federal programs. 
 

Board of Finance 
Town of Waterford, Connecticut 
(2) 
Auditors’ Responsibilities for the Audit of Compliance 
Our objectives are to obtain reasonable assurance about whether material noncompliance with the 
compliance requirements referred to above occurred, whether due to fraud or error, and express an 
opinion on the Town of Waterford, Connecticut‘s compliance based on our audit. Reasonable 
assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee 
that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform 
Guidance will always detect material noncompliance when it exists. The risk of not detecting material 
noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve 
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. 
Noncompliance with the compliance requirements referred to above is considered material if there is a 
substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a 
reasonable user of the report on compliance about the Town of Waterford, Connecticut’s compliance 
with the requirements of each major federal program as a whole. 
 
In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform 
Guidance, we: 
 
 
exercise professional judgment and maintain professional skepticism throughout the audit. 
 
 
identify and assess the risks of material noncompliance, whether due to fraud or error, and 
design and perform audit procedures responsive to those risks. Such procedures include 
examining, on a test basis, evidence regarding the Town of Waterford, Connecticut’s 
compliance with the compliance requirements referred to above and performing such other 
procedures as we considered necessary in the circumstances. 
 
 
obtain an understanding of the Town of Waterford, Connecticut’s internal control over 
compliance relevant to the audit in order to design audit procedures that are appropriate in the 
circumstances 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 the 
Town of Waterford, Connecticut’s internal control over compliance. Accordingly, no such opinion 
is expressed. 
 
We are required to communicate with those charged with governance regarding, among other matters, 
the planned scope and timing of the audit and any significant deficiencies and material weaknesses in 
internal control over compliance that we identified during the audit. 
 
Report on 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 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 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 a 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. 

Board of Finance 
Town of Waterford, Connecticut 
(3) 
Our consideration of internal control over compliance was for the limited purpose described in the 
Auditors’ Responsibilities for the Audit of Compliance section above and was not designed to identify all 
deficiencies in internal control over compliance that might be material weaknesses or significant 
deficiencies in internal control over compliance. Given these limitations, during our audit we did not 
identify any deficiencies in internal control over compliance that we consider to be material 
weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal 
control over compliance may exist that were not identified. 
 
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal 
control over compliance. Accordingly, no such opinion is expressed. 
 
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. 
 
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, 
each major fund, and the aggregate remaining fund information of the Town of Waterford, Connecticut, 
as of and for the year ended June 30, 2022, and the related notes to the financial statements, which 
collectively comprise the Town of Waterford, Connecticut’s basic financial statements, and have issued 
our report thereon dated December 19, 2022, 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 basic 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. 
 
 
 
 
CliftonLarsonAllen LLP 
West Hartford, Connecticut 
February 10, 2023 
 
 

TOWN OF WATERFORD, CONNECTICUT 
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
YEAR ENDED JUNE 30, 2022 
 
 
 
See accompanying Notes to Schedule of Expenditures of Federal Awards.. 
(4) 
 
Federal
Assistance
Passed
Federal Grantor/Pass-Through Grantor/
Listing
Pass-Through Entity
Through to
 Program or Cluster Title
Number
Identifying Number
Subrecipients
Expenditures
United States Department of Agriculture
Passed Through the State of Connecticut Department of Education: 
Child Nutrition Cluster: 
National School Lunch Program
10.555
12060-SDE64370-20560
$
$
44,648
        
$
National School Lunch Program
10.555
12060-SDE64370-20560-2022
1,158,252
   
National School Lunch Program
10.555
12060-SDE64370-23085
1,298
          
School Breakfast Program
10.553
12060-SDE64370-20508
329,114
      
1,533,312
      
State Administrative Expenses for Child Nutrition
10.560
12060-SDE64370-23126
45,773
           
P-EBT Local Admin
10.649
12060-SDE64370-29802
-
                      
3,070
             
Total United States Department of Agriculture
-
                      
1,582,155
      
United States Department of Transportation
Passed Through the State of Connecticut Department of Transportation: 
Highway Safety Cluster: 
State and Community Highway Safety
20.600
12062-DOT57513-20559
15,203
        
National Priority Safety Programs
20.616
12062-DOT57513-22600
5,354
          
20,557
           
Highway Planning and Construction Cluster: 
Highway Planning and Construction
20.205
12062-DOT57191-22108
76
               
76
                  
Alcohol Open Container Requirements
20.607
12062-DOT57513-22091
-
                      
2,901
             
Total United States Department of Transportation
-
                      
23,534
           
United States Department of Education 
Passed Through the State of Connecticut Department of Education: 
Special Education Cluster (IDEA): 
Special Education_Grants to States
84.027
12060-SDE64370-20977-2022
407,722
      
Special Education_Grants to States
84.027
12060-SDE64370-20977-2021
192,450
      
Special Education_Grants to States
84.027
12060-SDE64370-20977-2020
14,601
        
Special Education_Preschool Grants
84.173
12060-SDE64370-20983-2022
8,945
          
Special Education_Preschool Grants
84.173
12060-SDE64370-20983-2021
554
             
624,272
         
Education Stabilization Fund: 
COVID-19 ARP Special Education Grants
84.425U
12060-SDE64370-23083-2022
82,103
        
COVID-19 American Rescue Plan - Emergen
84.425U
12060-SDE64370-29636-2022
15,000
        
COVID-19 American Rescue Plan - Emergen
84.425U
12060-SDE64370-29636-2022
721,973
      
COVID-19 ESSERF K-12 Fund
84.425D
12060-SDE64370-29571-2021
649,754
      
COVID-19 ESSERF K-12 Fund
84.425D
12060-SDE64370-29571-2020
13,333
        
COVID-19 ESSERF K-12 Fund
84.425D
12060-SDE64370-29571-2021
64,026
        
COVID-19 Elementary & Secondary School
84.425W
12060-SDE64370-29650-2021
10,522
        
1,556,711
      
Total Federal
 
 

TOWN OF WATERFORD, CONNECTICUT 
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (CONTINUED) 
YEAR ENDED JUNE 30, 2022 
 
 
 
 
(5) 
 
Federal
Assistance
Passed
Federal Grantor/Pass-Through Grantor/
Listing
Pass-Through Entity
Through to
 Program or Cluster Title
Number
Identifying Number
Subrecipients
Expenditures
Total Federal
 
Title I Grants to Local Educational Agencies
84.010
12060-SDE64370-20679-2022
278,876
      
Title I Grants to Local Educational Agencies
84.010
12060-SDE64370-20679-2021
23,218
        
302,094
         
Career and Technical Education -- Basic Grants to States
84.048
12060-SDE64370-20742-2022
24,865
        
Career and Technical Education -- Basic Grants to States
84.048
12060-SDE64370-20742-2021
23,324
        
48,189
           
Improving Teacher Quality State Grants
84.367
12060-SDE64370-20858-2021
50,675
           
Title IV - Student Support
84.424
12060-SDE64370-22854-2022
7,919
          
Title IV - Student Support
84.424
12060-SDE64370-22854-2021
22,530
        
30,449
           
Total United States Department of Education 
-
                      
2,612,390
      
United States Department of Justice
Passed Through the State of Connecticut Department of Emergency Services and Public Protection: 
Edward Byrne Memorial Justice Assistance Grant Program
16.738
12060-DPS32523-26230
2,341
             
Direct: 
Equitable Sharing Program
16.922
-
                      
2,306
             
Total United States Department of Justice
-
                      
4,647
             
United States Department of Treasury 
Passed Through the State of Connecticut Office of Policy and Management: 
COVID-19 - ARPA Local Fiscal Recovery
21.027
12060-OPM20600-29669
-
                      
545,893
         
United States Department of Homeland Security 
Passed Through the State of Connecticut Department of Emergency Services and Public Protection: 
Disaster Grants - Public Assistance (Presidentially Declared Disas 97.036
12060-DPS32990-21891
26,721
           
Total Federal Expenditures
$
-
                      
$
4,795,340
      
 
 
 

TOWN OF WATERFORD, CONNECTICUT 
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
YEAR ENDED JUNE 30, 2022 
 
 
 
(6) 
 
NOTE 1 
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
Basis of Presentation 
The accompanying schedule of expenditures of federal awards (the Schedule) includes the 
federal award activity of the Town of Waterford, Connecticut, under programs of the federal 
government for the year ended June 30, 2022. The information in the Schedule is presented 
in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, 
Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal 
Awards (Uniform Guidance).   
 
Because the Schedule presents only a selected portion of the operations of the Town of 
Waterford, Connecticut, it is not intended to, and does not, present the financial position, 
changes in fund balance, changes in net position or cash flows of the Town of Waterford, 
Connecticut. 
 
Basis of Accounting 
Expenditures reported on the Schedule are reported using the modified accrual basis of 
accounting. Such expenditures are recognized following the cost principles contained in the 
Uniform Guidance. Under these principles certain types of expenditures are not allowable or 
are limited as to reimbursement. 
 
 
NOTE 2 
INDIRECT COST RECOVERY 
The Town of Waterford, Connecticut, has elected not to use the 10% de minimis indirect 
cost rate provided under Section 200.414 of the Uniform Guidance. 
 
 
NOTE 3 
NONCASH AWARDS 
Donated commodities in the amount of $44,648 are included in the Department of 
Agriculture’s National School Lunch Program, Assistance Listing #10.555. The amount 
represents the market value of commodities received. 
 
 

 
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(7) 
 
INDEPENDENT AUDITORS’ 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 
 
 
 
Board of Finance 
Town of Waterford, Connecticut 
 
 
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, each major fund, and the aggregate remaining fund information 
of the Town of Waterford, Connecticut, as of and for the year ended June 30, 2022, and the related 
notes to the financial statements, which collectively comprise the Town of Waterford, Connecticut’s 
basic financial statements, and have issued our report thereon dated December 19, 2022. 
 
Report on Internal Control Over Financial Reporting 
In planning and performing our audit of the financial statements, we considered the Town of Waterford, 
Connecticut’s internal control over financial reporting (internal control) as a basis for designing 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 Town 
of Waterford, Connecticut’s internal control. Accordingly, we do not express an opinion on the 
effectiveness of the Town of Waterford, Connecticut’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 entity’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 or significant deficiencies may exist that were not identified. 
 
 

Board of Finance 
Town of Waterford, Connecticut 
(8) 
Report on Compliance and Other Matters 
As part of obtaining reasonable assurance about whether the Town of Waterford, Connecticut’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 financial statements. 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. 
 
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 
entity’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. 
 
 
 
 
CliftonLarsonAllen LLP 
West Hartford, Connecticut 
December 19, 2022 
 
 

TOWN OF WATERFORD, CONNECTICUT 
SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30, 2022 
 
 
 
(9) 
 
Section I – Summary of Auditors’ Results 
 
Financial Statements 
 
1. Type of auditors’ report issued: 
Unmodified 
 
2. Internal control over financial reporting: 
 
 
Material weakness(es) identified? 
 
 yes 
        x 
 no 
 
 
Significant deficiency(ies) identified? 
 
 yes 
        x 
 none reported 
 
3. Noncompliance material to financial  
statements noted? 
 
 yes 
        x 
 no 
 
Federal Awards  
 
1. Internal control over major federal programs: 
 
 
Material weakness(es) identified? 
 
 yes 
        x 
 no 
 
 
Significant deficiency(ies) identified? 
 
 yes 
        x 
 none reported 
 
2. Type of auditors’ report issued on  
compliance for federal programs: 
Unmodified 
 
3. Any audit findings disclosed that are 
required to be reported in accordance 
with 2 CFR 200.516(a)? 
 
 yes 
        x 
 no 
 
Identification of Major Federal Programs 
 
 
Assistance Listing Number(s) 
Name of Federal Program or Cluster 
 
 
21.027 
COVID-19 – American Rescue Plan Act Local 
Fiscal Recovery 
 
 
84.425D/84.425U/84.425W 
COVID-19 Education Stabilization Fund 
 
 
10.553/10.555 
Child Nutrition Cluster 
 
Dollar threshold used to distinguish between  
Type A and Type B programs: 
$      750,000 
 
Auditee qualified as low-risk auditee? 
          x 
 yes  
 
          no 
 
 

TOWN OF WATERFORD, CONNECTICUT 
SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) 
YEAR ENDED JUNE 30, 2022 
 
 
 
(10) 
 
Section II – Financial Statement Findings 
 
Our audit did not disclose any matters required to be reported in accordance with Government Auditing 
Standards. 
 
 
Section III – Findings and Questioned Costs – Major Federal Programs 
 
Our audit did not disclose any matters required to be reported in accordance with 2 CFR 200.516(a).