PDF Signed Federal SA Report

TOWN OF WATERFORD, CONNECTICUT 
FEDERAL SINGLE AUDIT REPORT 
YEAR ENDED JUNE 30, 2025 

TOWN OF WATERFORD, CONNECTICUT 
TABLE OF CONTENTS 
YEAR ENDED JUNE 30, 2025 
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 
5 
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
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
8 
SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
10 

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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 
Qualified 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, 2025. 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. 
Qualified Opinion on 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds 
In our opinion, except for the noncompliance described in the Basis for Qualified Opinion section of our 
report, 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 the COVID-19 – 
Coronavirus State and Local Fiscal Recovery Funds program for the year ended June 30, 2025 
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, 2025. 
Basis for Qualified 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. 

Board of Finance 
Town of Waterford, Connecticut 
(2) 
Matter Giving Rise to Qualified Opinion on COVID-19 State and Local Fiscal Recovery Funds 
As described in the accompanying schedule of findings and questioned costs, Town of Waterford, 
Connecticut did not comply with requirements regarding Assistance Listing No. 21.027 COVID-19 – 
Coronavirus State and Local Fiscal Recovery Funds described in finding number 2025-001 for 
Reporting. 
Compliance with such requirements is necessary, in our opinion, for Town of Waterford, Connecticut to 
comply with the requirements applicable to that program. 
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. 
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.

Board of Finance 
Town of Waterford, Connecticut 
(3) 
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 
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 and therefore, material weaknesses or significant 
deficiencies may exist that were not identified. However, as discussed below, we did identify certain 
deficiencies in internal control over compliance that we consider to be a material weakness. 
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. We consider 
the deficiencies in internal control over compliance described in the accompanying schedule of findings 
and questioned costs as item 2025-001 to be a material weakness.  
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. 
Government Auditing Standards requires the auditor to perform limited procedures on Town of 
Waterford, Connecticut’s response to the internal control over compliance findings identified in our audit 
described in the accompanying schedule of findings and questioned costs. Town of Waterford, 
Connecticut’s response was not subjected to the other auditing procedures applied in the audit of 
compliance and, accordingly, we express no opinion on the response.  
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. 

Board of Finance 
Town of Waterford, Connecticut 
(4) 
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, 2025, 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, 2025, 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 
December 19, 2025 

TOWN OF WATERFORD, CONNECTICUT 
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
YEAR ENDED JUNE 30, 2025 
See accompanying Notes to Schedule of Expenditures of Federal Awards.. 
(5) 
Federal
Assistance
Federal Grantor/Pass-Through Grantor/
Listing
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
89,705
$        
National School Lunch Program
10.555
12060-SDE64370-20560
411,367
      
501,072
$      
School Breakfast Program
10.553
12060-SDE64370-20508
78,620
     
Local Food for Schools - USDA
10.185
12060-SDE64370-23292
2,932
       
Total United States Department of Agriculture
582,624
   
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
13,382
        
13,382
     
Alcohol Open Container Requirements
20.607
12062-DOT57513-22091
45,498
     
Total United States Department of Transportation
58,880
     
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-SDE64370-20977-2025
537,391
      
Special Education Grants to States
84.027
12060-SDE64370-20977-2024
164,158
      
701,549
   
Special Education Preschool Grants
84.173
12060-SDE64370-20983-2024
20,321
        
20,321
     
721,870
   
Title I Grants to Local Educational Agencies
84.010
12060-SDE64370-20679-2025
22,036
        
Title I Grants to Local Educational Agencies
84.010
12060-SDE64370-20679-2024
325,732
      
347,768
   
Career and Technical Education -- Basic Grants to States
84.048
12060-SDE64370-20742-2025
27,672
        
Career and Technical Education -- Basic Grants to States
84.048
12060-SDE64370-20742-2024
49,815
        
77,487
     
Improving Teacher Quality State Grants
84.367
12060-SDE64370-20858-2025
4,625
          
Improving Teacher Quality State Grants
84.367
12060-SDE64370-20858-2024
53,151
        
57,776
     
Title IV - Student Support
84.424
12060-SDE64370-22854-2025
12,423
        
Title IV - Student Support
84.424
12060-SDE64370-22854-2024
12,394
        
24,817
     
English Language Acquisition State Grants
84.365
12060-SDE64370-20868-2025
13,607
        
13,607
     
Total United States Department of Education 
1,243,325
     
Total Federal

TOWN OF WATERFORD, CONNECTICUT 
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (CONTINUED) 
YEAR ENDED JUNE 30, 2025 
 
 
 
See accompanying Notes to Schedule of Expenditures of Federal Awards.. 
(6) 
 
Federal
Assistance
Federal Grantor/Pass-Through Grantor/
Listing
Pass-Through Entity
 Program or Cluster Title
Number
Identifying Number
Expenditures
Total Federal
 
United States Department of Homeland Security 
Passed Through the State of Connecticut Department of 
  Emergency Services and Public Protection: 
Emergency Management Performance Grants
97.042
12060-DPS32160-21881
52,264
$        
Direct:
Assistance to Firefighters Grant
97.044
33,915
          
Total United States Department of Homeland Security 
86,179
          
United States National Endowment for the Humanities 
Passed Through the State of Connecticut Economic and Community Development: 
Promotion of the Arts Partnership Agreements
45.025
12060-ECD46820-20328
1,250
            
Total United States National Endowment for the Humanities 
1,250
            
Passed Through the State of Connecticut Department of Education: 
COVID-19 ARPA-FAFSA Completion
21.027
12060-SDE64370-28092
2,519
$          
COVID-19 ARPA-ParaEducational PD
21.027
12060-SDE64370-28098
8,000
            
COVID-19 ARPA Summer Mental Health Support Grant 
21.027
12060-SDE64370-28096
17,803
          
COVID-19 ARPA-Free Meals for Students
21.027
12060-SDE64370-28105
7,941
            
Passed Through the State of Connecticut Department of Administrative Services: 
COVID-19 ARPA Senior Centers 
21.027
12060-SDR63901-28009
58,221
          
Passed Through the State of Connecticut Department of Emergency 
  Services and Public Protection: 
COVID-19 ARPA-Auto Theft and Violence
21.027
12060-DPS32155-28122
35,266
          
Direct:
COVID-19 State and Local Fiscal Recovery Funds
21.027
2,043,828
     
2,173,578
     
Total United States Department of the Treasury
2,173,578
     
Total Expenditures of Federal Awards 
4,145,836
$   
 
 
 

TOWN OF WATERFORD, CONNECTICUT 
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
YEAR ENDED JUNE 30, 2025 
 
 
 
(7) 
 
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, 2025. 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 $89,705 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. 
 
 
NOTE 4 
SUBRECIPIENTS 
The Town of Waterford, Connecticut did not provide any federal funds to subrecipients for 
the year ended June 30, 2025. 
 

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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, 2025, 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, 2025. 
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 
(9) 
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, 2025 
 

TOWN OF WATERFORD, CONNECTICUT 
SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30, 2025 
 
 
 
(10) 
 
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? 
        x 
 yes 
         
 no 
 
• 
Significant deficiency(ies) identified? 
 
 yes 
        x 
 none reported 
 
2. Type of auditors’ report issued on  
compliance for federal programs: 
Qualified 
 
3. Any audit findings disclosed that are 
required to be reported in accordance 
with 2 CFR 200.516(a)? 
        x 
 yes 
         
  no 
 
Identification of Major Federal Programs 
 
 
Assistance Listing Number(s) 
Name of Federal Program or Cluster 
 
 
21.027 
COVID-19 – Coronavirus State and Local Fiscal 
Recovery Funds 
 
 
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, 2025 
 
 
 
(11) 
 
Section II – Financial Statement Findings 
 
Our audit did not disclose any matters required to be reported in accordance with Government Auditing 
Standards. 
 

TOWN OF WATERFORD, CONNECTICUT 
SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) 
YEAR ENDED JUNE 30, 2025 
 
 
 
(12) 
 
Section III – Findings and Questioned Costs – Major Federal Programs 
 
2025-001 
Reporting 
 
Federal Agency:  
Department of the Treasury 
Federal Program Name:  
COVID-19 – Coronavirus State and Local Fiscal  
 
Recovery Funds 
Assistance Listing Number:  
21.027 
Federal Award Identification Number and Year:  
March 3, 2021 through December 31, 2026 
Award Period:  
2025 
 
Type of Finding: Material Weakness in Internal Control over Compliance 
 
Criteria:  
The Town is required to submit annual Project and Expenditure Reports as of 
March 31st, per Coronavirus State and Local Fiscal Recovery Fund Reporting 
Compliance Requirements. The Town internal control processes over reporting 
require review and approval of project expenditure reports for accuracy prior to 
submission to the granting agency. 
 
Condition:  
Testing of the March 31, 2025 report revealed cumulative expenditures did not 
match underlying accounting records, indicating no effective controls to ensure 
accuracy. 
 
Questioned Costs:  Total cumulative expenditures were underreported by $271,749. 
 
Context: 
The Town submitted Project and Expenditure Reports that did not tie to 
underlying accounting records. 
 
Cause:  
Expenditures were underreported due to incorrect report parameters used to 
generate supporting documentation used in the report preparation and 
inadequate review controls. 
 
Effect:  
Inaccurate reporting could result in misrepresentation of progress in 
program/project status and eligible expenditures to date. Without proper controls 
in place over reporting, inaccurate project information could be reported and not 
detected by the Town. 
 
Repeat Finding: 
No 
 
Recommendation:  We recommend the Town strengthen processes and internal controls over grant 
expenditure reporting to ensure accurate data and proper review before 
submission. 
Views of  
Responsible 
Officials:  
Management agrees with this finding.