Signed State Single Audit FY21

TOWN OF WATERFORD, CONNECTICUT 
 
STATE SINGLE AUDIT REPORT  
 
JUNE 30, 2021 
 

 
TOWN OF WATERFORD, CONNECTICUT 
STATE SINGLE AUDIT REPORT 
JUNE 30, 2021 
TABLE OF CONTENTS 
Independent Auditors’ Report on Compliance for Each Major State Program; Report on 
Internal Control over Compliance; and Report on the Schedule of Expenditures of 
State Financial Assistance Required by the State Single Audit Act 
1-3 
Schedule of Expenditures of State Financial Assistance 
4-5 
Notes to Schedule of Expenditures of State Financial Assistance 
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 
 

 CLA is an independent member of Nexia International, a leading, global network of independent  
accounting and consulting firms. See nexia.com/member-firm-disclaimer for details. 
CliftonLarsonAllen LLP 
CLAconnect.com 
 
1 
Independent Auditors’ Report on Compliance for Each Major  
State Program; Report on Internal Control Over Compliance;  
and Report on the Schedule of Expenditures of State Financial  
Assistance Required by the State Single Audit Act 
To the Members of the Board of Finance 
Town of Waterford, Connecticut 
Report on Compliance for Each Major State Program 
We have audited the Town of Waterford, Connecticut’s compliance with the types of compliance 
requirements described in the Office of Policy and Management’s Compliance Supplement that could 
have a direct and material effect on each of the Town of Waterford, Connecticut’s major state programs 
for the year ended June 30, 2021.  The Town of Waterford, Connecticut’s major state programs are 
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 the requirements of laws, regulations, contracts and 
grants applicable to its state programs. 
Auditors’ Responsibility 
Our responsibility is to express an opinion on compliance for each of the Town of Waterford, 
Connecticut’s major state 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 State 
Single Audit Act (C.G.S. Sections 4-230 to 4-236).  Those standards and the State Single Audit Act 
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 state 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 each major state 
program.  However, our audit does not provide a legal determination of the Town of Waterford, 
Connecticut’s compliance. 

 
2 
Opinion on Each Major State 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 each of its 
major state programs for the year ended June 30, 2021.  
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 each major state program to determine the auditing procedures that are appropriate in the 
circumstances for the purpose of expressing an opinion on compliance for each major state program and 
to test and report on internal control over compliance in accordance with the State Single Audit Act, 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 
state 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 state 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 state 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 State 
Single Audit Act.  Accordingly, this report is not suitable for any other purpose.   
 
 

3 
Report on Schedule of Expenditures of State Financial Assistance Required by the State Single 
Audit Act  
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, 2021, 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 December 17, 2021, 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 state financial assistance is presented for purposes of additional analysis as required by the State 
Single Audit Act 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 state financial assistance is fairly 
stated in all material respects in relation to the basic financial statements as a whole. 
CliftonLarsonAllen LLP 
December 17, 2021
West Hartford, Connecticut

TOWN OF WATERFORD, CONNECTICUT
SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE
FOR THE YEAR ENDED JUNE 30, 2021
State Grantor/Pass-Through Grantor/
State Grant Program
  
 Program Title
Core-CT Number
  
Department of Education
Talent Development
11000-SDE64370-12552
$
1,075
             
Child Nutrition State Match
11000-SDE64370-16211
8,538
             
Health Foods Initiative
11000-SDE64370-16212
16,446
           
Adult Education
11000-SDE64370-17030
13,643
           
Health & Welfare - Private School Pupil
11000-SDE64370-17034
6,359
             
School Breakfast Program
11000-SDE64370-17046
13,578
           
Total Department of Education
59,639
           
Department of Social Services
Medicaid
11000-DSS60000-16020
62,310
           
Connecticut State Library
Historic Document Preservation
12060-CSL66094-35150
5,500
             
Department of Children and Families
Youth Service Bureaus
11000-DCF91141-17052
14,189
           
Youth Service Bureau Enhancement
11000-DCF91141-17107
10,720
           
Total Department of Children and Families
24,909
           
Department of Transportation
Town Aid Road-STO
13033-DOT57131-43459
160,434
         
Town Aid Road Grants-Municipal
12052-DOT57131-43455
160,434
         
Total Department of Transportation
320,868
         
Department of Emergency Services and Public Protection
Drug Asset Forfeiture Revolving Account
12060-DPS32155-35142
18,081
           
Enhanced 911 Telecommunications Fund
12060-DPS32741-35190
22,805
           
Nuclear Emergency Safety Fund
12060-DPS32982-90428
133,310
         
Total Department of Emergency Services and Public Protection
174,196
         
Expenditures
The accompanying notes are an integral part of this schedule
4

TOWN OF WATERFORD, CONNECTICUT
SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
State Grantor/Pass-Through Grantor/
State Grant Program
 Program Title
Core-CT Number
Office of Policy and Management
Reimbursement Towns - Tax Loss on State Owned Property
11000-OPM20600-17004
$
143,075
         
Reimbursement Towns - Private Tax Exempt Property
11000-OPM20600-17006
109,838
         
Reimbursement Property Tax - Disability Exemption
11000-OPM20600-17011
1,919
             
Property Tax Relief for Veterans
11000-OPM20600-17024
8,503
             
Municipal Purposes & Projects
12052-OPM20600-43587
34,255
           
Local Capital Improvement
12050-OPM20600-40254
100,497
         
Total Office of Policy and Management
398,087
         
Economic and Community Development
Economic Assistance Bond Fund
12034-ECD46200-40221
219,239
         
Historic Preservation Activities Grants
12060-ECD46840-90455
5,000
             
Total Economic and Community Development
224,239
         
Total State Financial Assistance Before Exempt Programs 
1,269,748
      
Exempt Programs 
Department of Education
Education Cost Sharing
11000-SDE64370-17041-82010
316,189
         
Excess Cost - Student Based
11000-SDE64370-17047
149,687
       
Excess Cost - Student Based
11000-SDE64370-17047
340,059
       
489,746
         
Total Department of Education
805,935
         
Total Exempt Programs 
805,935
         
Total State Financial Assistance 
$
2,075,683
      
Expenditures
The accompanying notes are an integral part of this schedule
5

 
6 
TOWN OF WATERFORD, CONNECTICUT 
NOTES TO SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE 
FOR THE YEAR ENDED JUNE 30, 2021 
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
Basis of Presentation 
The accompanying schedule of expenditures of state financial assistance (the Schedule) includes the 
state grant activity of the Town of Waterford, Connecticut, under programs of the State of Connecticut for 
the year ended June 30, 2021.  Various departments and agencies of the State of Connecticut have 
provided financial assistance through grants and other authorizations in accordance with the General 
Statutes of the State of Connecticut.  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 
The accounting policies of the Town of Waterford, Connecticut, conform to accounting principles 
generally accepted in the United States of America as applicable to governmental organizations.  The 
information in the Schedule is presented based upon regulations established by the State of Connecticut, 
Office of Policy and Management. 
Expenditures reported on the Schedule are presented on the modified accrual basis of accounting.  In 
accordance with Section 4-236-22 of the Regulations to the State Single Audit Act, certain grants are not 
dependent on expenditure activity and, accordingly, are considered to be expended in the fiscal year of 
receipt.  These grant program receipts are reflected in the expenditures column of the Schedule. 
 

 CLA is an independent member of Nexia International, a leading, global network of independent  
accounting and consulting firms. See nexia.com/member-firm-disclaimer for details. 
CliftonLarsonAllen LLP 
CLAconnect.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, 2021, 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 17, 2021.   
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. 
CliftonLarsonAllen LLP 
West Hartford, Connecticut 
December 17, 2021 

 
9 
TOWN OF WATERFORD, CONNECTICUT 
SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
FOR THE YEAR ENDED JUNE 30, 2021 
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 
 
State Financial Assistance 
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 Section 4-236-24 of the Regulations to the 
State Single Audit Act? 
 
yes 
X 
no 
 
The following schedule reflects the major programs included in the audit: 
State Grantor and Program  
 
State Core-CT Number 
 
Expenditures 
 
 
 
 
 
Department of Transportation: 
 
 
  
  Town Aid Road Grants - Municipal 
 
12052-DOT57131-43455 
 $ 
160,434 
  Town Aid Road - STO 
 
13033-DOT57131-43459 
 
160,434 
Office of Policy and Management: 
 
 
 
 
  Local Capital Improvement 
 
12050-OPM20600-40254 
 
100,497 
  Reimbursement Towns - Tax Loss on State  
    Owned Property 
 
11000-OPM20600-17004 
 
143,075 
  Reimbursement Towns - Private  
   Tax Exempt Property 
 
11000-OPM20600-17006 
 
109,838 
 
Dollar threshold used to distinguish between type A and type B programs: 
$ 
200,000 
 
II. FINANCIAL STATEMENT FINDINGS  
No matters were reported. 
III. STATE FINANCIAL ASSISTANCE FINDINGS AND QUESTIONED COSTS 
No matters were reported.