TOWN OF WATERFORD CONNECTICUT FEDERAL SINGLE AUDIT REPORT 2020

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TOWN OF 
WATERFORD, 
CONNECTICUT 
FEDERAL SINGLE AUDIT REPORT  
JUNE 30, 2020 
 

 
 
TOWN OF WATERFORD, CONNECTICUT 
FEDERAL SINGLE AUDIT REPORT 
JUNE 30, 2020 
TABLE OF CONTENTS 
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 
1-3 
Schedule of Expenditures of Federal Awards 
4-5 
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 
7-8 
Schedule of Findings and Questioned Costs 
9 
 

blumshapiro 
accounting• tax• advisory 
29 South Main Street 
P.O. Box 272000 
West Hartford, CT 06127-2000 
Tel 860.561.4000 
blumshapiro.com 
 
1 
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 
To the Members of the Board of Finance 
Town of Waterford, Connecticut 
Report on Compliance for Each Major Federal Program 
We have audited the Town of Waterford, Connecticut’s compliance with the types of 
compliance requirements described in the OMB Compliance Supplement that could have a 
direct and material effect on the Town of Waterford, Connecticut’s major federal program for 
the year ended June 30, 2020.  The Town of Waterford, Connecticut’s major federal program 
is identified in the summary of auditors’ results section of the accompanying schedule of 
findings and questioned costs.   
Management’s Responsibility 
Management is responsible for compliance with federal statutes, regulations, and the terms 
and conditions of its federal awards applicable to its federal programs. 
Auditors’ Responsibility 
Our responsibility is to express an opinion on compliance for the Town of Waterford, 
Connecticut’s major federal 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 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).  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 Town of Waterford, Connecticut’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 
major federal program.  However, our audit does not provide a legal determination of the Town 
of Waterford, Connecticut’s compliance. 
 

 
2 
Opinion on Each Major Federal Program 
In our opinion, the Town of Waterford, Connecticut, complied, in all material respects, with the types of 
compliance requirements referred to above that could have a direct and material effect on its major 
federal program for the year ended June 30, 2020.   
Report on Internal Control over Compliance 
Management of the Town of Waterford, Connecticut, 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 Town of Waterford, Connecticut’s 
internal control over compliance with the types of requirements that could have a direct and material 
effect on the major federal program to determine the auditing procedures that are appropriate in the 
circumstances for the purpose of expressing an opinion on compliance for the 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 Town of Waterford, Connecticut’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 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. 
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.   

3 
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, 2020, and the related notes to the financial statements, which 
collectively comprise the Town of Waterford, Connecticut’s basic financial statements.  We issued our 
report thereon dated November 17, 2020, 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. 
West Hartford, Connecticut 
November 17, 2020 

TOWN OF WATERFORD, CONNECTICUT  
  
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS   
FOR THE YEAR ENDED JUNE 30, 2020
Federal
Federal Grantor/Pass-Through Grantor/
CFDA
Pass-Through Entity
 Program or Cluster Title
Number
Identifying Number
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
$
253,092
      
School Breakfast Program
10.553
12060-SDE64370-20508
39,848
        
COVID-19 National School Lunch Program
10.555
12060-SDE64370-20572
70,042
        
COVID-19 School Breakfast Program
10.555
12060-SDE64370-29576
44,317
        
$
407,299
          
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-DOT57343-20559
3,074
          
State and Community Highway Safety
20.600
12062-DOT57513-20559
13,201
        
16,275
            
Alcohol Open Container Requirements
20.607
12062-DOT57513-22091
4,326
              
Total United States Department of Transportation
20,601
            
United States Department of Justice
Passed Through the State of Connecticut Office of Policy and Management: 
Edward Byrne Memorial Justice Assistance Grant Program
16.738
12060-OPM20350-21921
49,289
        
Passed Through the State of Connecticut Department of Emergency Services and Public Protection: 
Edward Byrne Memorial Justice Assistance Grant Program
16.738
 12060-DPS32523-26185 
10,142
        
Edward Byrne Memorial Justice Assistance Grant Program
16.738
 12060-DPS32523-26230 
8,765
          
68,196
            
Direct: 
Equitable Sharing Program
16.922
6,967
              
Total United States Department of Justice
75,163
            
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-SDE64370-20977-2020
366,885
      
Special Education Grants to States
84.027
12060-SDE64370-20977-2019
202,981
      
Special Education Preschool Grants
84.173
12060-SDE64370-20983-2020
3,120
          
Special Education Preschool Grants
84.173
12060-SDE64370-20983-2019
13,351
        
586,337
          
Title I Grants to Local Educational Agencies
84.010
12060-SDE64370-20679-2020
288,476
      
Title I Grants to Local Educational Agencies
84.010
12060-SDE64370-20679-2019
45,332
        
333,808
          
Career and Technical Education - Basic Grants to States
84.048
12060-SDE64370-20742-2020
12,134
        
Career and Technical Education - Basic Grants to States
84.048
12060-SDE64370-20742-2018
10,000
        
22,134
            
Total Federal
The accompanying notes are an integral part of this schedule
4

                                                                                                  (CONTINUED)
TOWN OF WATERFORD, CONNECTICUT  
  
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS   
FOR THE YEAR ENDED JUNE 30, 2020
Federal
Federal Grantor/Pass-Through Grantor/
CFDA
Pass-Through Entity
 Program or Cluster Title
Number
Identifying Number
Expenditures
Total Federal
Improving Teacher Quality State Grants
84.367
12060-SDE64370-20858-2019
$
42,633
            
Title IV - Student Support
84.424
12060-SDE64370-22854-2020 $
16,457
        
Title IV - Student Support
84.424
12060-SDE64370-22854-2019
7,061
          
23,518
            
Passed Through LEARN:  
English Language Acquisition State Grants
84.365
4,473
              
Total United States Department of Education 
1,012,903
       
United States Department of Homeland Security 
Passed Through the Southeastern Regional Action Council: 
Emergency Management Performance Grants
97.042
 12060-DPS32160-21881 
2,500
              
Passed Through the State of Connecticut:
COVID-19 Disaster Grants - Public Assistance (Presidentially 
Declared Disasters)
97.036
68,032
            
Direct: 
Port Security Grant Program
97.056
24,000
            
Total United States Department of Homeland Security 
94,532
            
United States Department of Health and Human Services 
Direct: 
Aging Cluster: 
Special Programs for the Aging Title III, Part B Grants for Supportive
Services and Senior Centers
93.044
1,122
              
United States Department of the Treasury
Passed Through the State of Connecticut:
COVID-19 Coronavirus Relief Fund
21.019
105,036
          
Total Federal Awards 
$
1,716,656
       
The accompanying notes are an integral part of this schedule
5

 
6 
TOWN OF WATERFORD, CONNECTICUT 
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
FOR THE YEAR ENDED JUNE 30, 2020 
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, 2020.  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, 
wherein certain types of expenditures are not allowable or are limited as to reimbursement. 
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.  
3. NONCASH AWARDS 
Donated commodities in the amount of $44,021 are included in the Department of Agriculture’s National 
School Lunch Program, CFDA #10.555.  The amount represents the market value of commodities 
received. 

blumshapiro 
accounting• tax• advisory 
29 South Main Street 
P.O. Box 272000 
West Hartford, CT 06127-2000 
Tel 860.561.4000 
blumshapiro.com 
 
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 
To the Members of the 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, 2020, 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 November 17, 2020.   
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 may exist that have not been identified. 
 

8 
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 Town of Waterford, 
Connecticut’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 Town of Waterford, Connecticut’s 
internal control and compliance.  Accordingly, this communication is not suitable for any other purpose. 
West Hartford, Connecticut 
November 17, 2020 

9 
TOWN OF WATERFORD, CONNECTICUT 
SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
FOR THE YEAR ENDED JUNE 30, 2020 
I.
SUMMARY OF AUDITORS’ RESULTS
Financial Statements 
Type of auditors’ report issued: 
Unmodified 
Internal control over financial reporting: 
• Material weakness(es) identified?
yes 
X 
no 
• Significant deficiency(ies) identified?
yes 
X 
none reported 
Noncompliance material to financial statements noted?
yes 
X 
no 
Federal Awards 
Internal control over major programs: 
• Material weakness(es) identified?
yes 
X 
no 
• Significant deficiency(ies) identified?
yes 
X 
none reported 
Type of auditors’ report issued on compliance for major programs: 
Unmodified 
Any audit findings disclosed that are required to be reported in 
accordance with 2 CFR Section 200.516(a)? 
yes 
X 
no 
Major programs: 
CFDA # 
Name of Federal Program or Cluster 
84.027/84.173  
Special Education Cluster (IDEA) 
Dollar threshold used to distinguish between type A and type B programs: 
$      750,000 
Auditee qualified as low-risk auditee? 
  X 
yes 
no 
II.
FINANCIAL STATEMENT FINDINGS
No matters were reported. 
III. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
No matters were reported.