BOF Budget Hearing Agenda & Backup 3/10/25

FIFTEEN ROPE FERRY ROAD
WATERFORD, CT 06385-2886
PHONE: 860-442-0553
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AGENDA “2 8
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Waterford Town Hall Monday, March 10, 2025
Budget Hearing Town Hall 7:00 p.m.
1. Call to Order
2. Public Comment
3. 10113 ~ Economic Development Commission
4. 10114 — Conservation Commission
5. 10110 - Planning & Zoning
6. 10115 - Zoning Board of Appeals
7. 10118 - Building Department
8 10141 - Flood and Erosion Control
9. 10107 - Finance Department
10. Review Projected Revenue
11, Adjournment
Glenn Patterson, Chairman

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TOWN OF
FY2026 BUDGET REQUEST
RTMENT; Economic Developm
BUDGET FUNCTION
‘The Economic Development Commission's purpose is to support and grow Waterford’s economy. The
Commission is empowered by Town Ordinance and State Statutes to serve as a platform to coordinate
activities and groups that work in support of economic development. Broad responsibilities the
Commission may undertake include market analysis, business recruitment and retention, marketing the
‘Town, and recommending actions that the Town can take to meet its development goals.
‘The proposed FY26 EDC budget reflects a .3% increase from FY2S. The Commission voted to continue to
ensure that it has the resources to better support Waterford’s economic development efforts. Key
elements of the budget request include the need for consultant to work with the Commission on
engagement with the business community, effective marketing, and targeted networking.
MEMBERS
Edward Lusher, Chair
Guy Russo
James Nicholas
Michael Buscetto III
Kathleen Mullen - Kohl
ALTERNATES
Julie Greco
Scott Gladstone

TOWN OF WATERFORD
____F¥2026 BUDGET REQUEST
_ DEPARTMENT: Economic Development Commission
BUDGET SUMMARY
ECONOMIC DEVELOPMENT: Proposed Fiscal Year 2026
SERVICES:
10113-52010-101-010-13-00-52 ADVERTISING 500
10113-52020-101-010-13-00-52 POSTAGE 1,000
10113-52030-101-010-13-00-52 PROFESSIONAL FEES 11,800
10113-52050-101-010-13-00-52 DUES,CONFERENCES & EDUCATION 11,752
10113-52060-101-010-13-00-52 PRINTING 200
10113-52070-101-010-13-00-52 REIMBURSABLE EXPENSES 100
TOTAL 
25,352
Advertising Line 10113-52010
$500 Requested
The EDC will advertise via print, digital, and social media platforms. Advertisments for EDC sponsored
events to aimed at helping local small businesses gain access to grants, loans and buisness advising
services would be paid from this line.
Postage 10113-52030
$1000 Requested
The EOC will pay for postage to advertise EDC sponsored events out of this line.
Professional Fees Line 10113-52030
$11,800 Requested
The Town is looking to hire a consultant to act as a community liaison. The consultant would report to
‘the Planning Director. Example of duties would include but would not be limited to; attendance at all
Economic Development Commission meetings; coordination of EDC sponsored events; serve as primary
contact with local businesses and economic agencies such as seCTer and the Chamber of Commerce;
and maintenance of a Waterford small business database.
Dues, Conferences and Education Line 10113-52050
$11,752 Requested
The EDC maintains membership with the Southeastern CT Enterprise Region (SeCTer) for the Town.
SeCTer provides access to regional economic data and project support. The Commission also maintains
memberships with professional organizations for the purposes of implementing and maintaining effective
economic development programs. Members attend educational and networking events whenever
possible.

TOWN OF WATERFORD
*Y2026 BUDGET REQU
DE MENT: Economic Development ¢
Southeastern CT Enterprise Region (seCTer) ..
SeCTer provides the Town with regional business information,
‘educational resources.
‘Chamber of Commerce of Southeastern CT.
Promotes local networking, facilitates communication & collaboration
Business meeting expenses, including shared costs of facilities and admission costs for economic
events, meetings and seminars $ 500
International Council of Shopping Centers (ICSC) Conference Attendance.. $2,100
ICSC is a member organization supporting retail, dining, entertainment, and other marketplace
industries. The organization provides industry insights and networking opportunities to support
development initiatives. The Economic Development Commission recommends that two
representatives from Waterford be funded to attend an International Council of Shopping,
Centers (ICSC) in New York to make connections and promote commercial development
opportunities in Waterford to industry leaders,
Printing Line 10113-52060
$200 Requested
€ This line will cover the cost of materials related to Economic Development Strategy implementation, such
as drafts of graphic designs or similar items that will require Commission review.
Reimbursable Expenses Line 10113-52070
$100 Requested
EDC members on occasion pay out of pocket for expenses associated with travel to seminars and business
‘meetings. This line item provides for the reimbursement of funds expended by EDC members in providing
services to the Town.

TOWN OF WATERFORD
DGET REQUEST
DEPARTMENT: Economic Development Cc
imission.
‘Year Mtoryof Epenares
rene Pro Fro Prout 2020
COmGNAL Fra024 ONGIAL FY2023ONGINAL FYI022 ORGINAL F202 ORGINAL Fr2020
BUOGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL BLOGEY ACTUAL BUDGET ACTUAL
ECONOMIC DEVELOPMENT COMMISSION
senvees
10113-52010 101010130082 AoveRTING 209 | ae) oa as as
1011252020-101.010:13.0052 POSTAGE 3 z 3 Fi 3 = 20 m
10112-52030 101-0101.0052 PROFESSIONAL FES soc 17000 1600078004500 Lat 5 : :
130418 52050-10-010130052 DUESCONFERENCES B EDUCATION ——«S6457_— 9444100718508 AS74070
1011352060-10-01012.0052 RATING m ee 150 ‘30 ae
1018352070 101-010 120052 REIMBURSABLE BENSES 7 mo 10 wos
Tease B27 __Nai anes ass aaa oe a
a
Y

c
ECONOMIC DEVELOPMENT: Proposed Fiscal Year 2026
SERVICES:
10113-52010-101-010-13-00-52 ADVERTISING
10113-52020-101-010-13-00-52 POSTAGE
10113-52030-101-010-13-00-52 PROFESSIONAL FEES
10113-52050-101-010-13-00-52 DUES, CONFERENCES & EDUCATION
10113-52060-101-010-13-00-52 PRINTING
10113-52070-101-010-13-00-52 REIMBURSABLE EXPENSES
TOTAL
1,000
11,800
11,752
200
100
25,352

WATEREORD, CT 06385-2886,
MINUTES
WATERFORD ECONOMIC DEVELOPMENT COMMISSION
November 14, 2024 ~
WATERFORD TOWN HALL FI BB
5:00 PM = ga
2 as
MEMBERS PRESENT: —_ Kathleen Mullen-Kohl, Guy Russo ay on BS
MEMBERS ABSENT: Edward Lusher, Michacl Buscetto, James Nidig& S24
ALTERNATES PRESENT: Julie Greco an > SR
ALTERNATES ABSENT: — Scott Gladstone aN
STAFF PRESENT: Jonathan E, Mullen, AICP, Planning oir Wa iz,
Planner, Dawn Choisy, Recording Seeretary
1 CALL TO ORDER/APPOINTMENT OF ALTERNATES,
G. Russo called the meeting to order at 5:00 and seated J. Greco.
2 APPROVAL OF MINUTES ~ October10, 2024
MOTION: Motion made by K. Mullen-Kohl, seconded by J. Greco to approve the
€ minutes of the September 12, 2024 meeting as written.
VOTE: 3-0
3. UPDATE ON NEW AND EXISTING BUSINESSES
facility on Hartford Turnpike and Cohen Optical in Wat
noted that the Town is waiting on information
Gas station located at 118 Boston Post Road.
iterford Commons. They also
on the construction of the canopy for the
4. NEW BUSINESS
° Upcoming EDC Sponsored Events
J, Mullen stated that the Commission should think about what kind of small
business events they would like to ‘Sponsor.
° FY23/24 Annual Report
MOTION: Motion made by K. Mullen-Kohl, seconded by J. Greco, to
approve the FY23/24 Annual Report as drafted.
VOTE: 3-0
© FY26 Budget
MOTION: — Motion made by K. Mullen-Kohl, seconded by J. Greco, to
approve the FY26 Budget as drafted.
VOTE: 3.0
5. OLD BUSINESS
c © Gateway Signage
J. Mullen stated that the First Selectman ‘wants to explore other options,

Economic Development Commission
‘November 14, 2024
p.20f2
MOTION: Motion made by J. Greco, seconded by K. Mullen-Kohl to add an update
on the Crystal Mall to the agenda.
VOTE: 3-0
* Mall Update
J. Mullen updated the Commission on the Crystal Mall.
6, | ADJOURNMENT
MOTION: Motion made by K. Mullen-Kohl, seconded by J. Greco, to adjourn the
meeting at 5:42,
VOTE: 3-0

Southeastern Connecticut Enterprise Region
*& seCTer
~~ x 19-8 Thames Street P.O. Box 867 * Groton, Connecticut 06340
860-437-4659 * Fax: 860-437-4662 + E-mall: secTer@seCTer.org,
SECTER
Cc
December 17, 2024
First Selectman Brule
15 Rope Ferry Rd
Waterford 06385
Dear Mr. Robert Brule,
‘As you plan Waterford’s 2025/2026 Municipal Budget, the Southeastern Connecticut Enterprise Region (seCTer) is
submitting its annual request of $8,806.95 to provide regional economic development, commercial lending, procurement
technical assistance, small business development, data and grant writing support. The requested funding rate is $0.45 per
capita. As of the 2020 U.S. Census, Waterford’s population was 19517.
seCTer is the local, state and federally designated Economic Development Organization (EDO) for the Economic
Development District (EDD) of southeastern Connecticut. seCTer catalyzes growth and prosperity throughout the EDD.
with a mission of making southeastern Connecticut stronger and more vibrant by 2030.
‘As a benefit to member municipalities such as Waterford, seCTer provides services to Waterford’s residents, leaders, and
existing and prospective businesses on an on-going basis. These services include but are not limited to: writing and
implementing the five-year Comprehensive Economic Development Strategy (CEDS) for the region, securing funding,
for targeted businesses, assistance to businesses to procure government contracts, creating partnerships for businesses to
ize on municipal and state incentives, providing small business development, delivering data and grant writing
guidance, and site finding. seCTer is funded for these efforts, in part, by the U.S. Department of Commerce's Economic
Development Administration (EDA).
‘The 2023 - 2028 CEDS was created by the region for the region and is approved by seCTer’s Board of Directors, the
Southeastern CT Council of Governments, CT Department of Economic and Community Develoment, and the US
Economic Develoment Administration. The CEDS serves as an ambitious and acountable framework for sustained regional
‘economic prosperity through collaboration and innovation. seCTer also created a digital CEDS that is a resource for all in
the region. It is interactive with data that is updated when new releases become available, https://secter.digitalceds.com/.
Please take a look!
seCTer’s Non-Traditional Small Business Lending program supports small to mid-sized manufacturing, fabricating,
biotech, agro-tech and similar businesses in the region with available capital in its Revolving Loan Funds (RLF). seCTer is
pro-active in providing lending to businesses requiring financial aid, including start-ups, by seCTer directly and with lending,
partnerships. seCTer continues to work closely with the U.S. EDA, the U.S. Small Business Administration (SBA), and the
State’s Department of Economic and Community Development (DECD), to facilitate newly introduced loan and grant
programs to small businesses in the region.
seCTerRise, a growth grant program for businesses in the region was launched this year providing, so far, $988,696 in
awards to sixty two businesses. Annually, for the next three years, seCTer will provide to businesses in the region up to
$500,000.00. It is more than likely a business in Waterford will access these funds.
The Economic Development Organization for the Economic Development District of southeastem Connecticut

seCTer also participates in the CT Small Business Boost Fund which provides low interest loans to existing businesses.
Launched this year is the seCTerRise Program, which will provide seed and growth funding to businesses in the region.
‘These funds will not be loans and are accompanied with technical assistance so that businesses have the resources needed
to succeed.
seCTer’s Connecticut APEX Accelerator (CT APEX) is a statewide program that has assisted thousands of Connecticut
businesses to successfully prepare for and win local, state and federal government contracts. In it's program year ending
August 31, 2024, CT APEX served many companies throughout the region resulting in more than $441 million in
governement contracts. CT APEX is funded by DECD and the U.S. Department of Defense. This program is especially vital
towards helping our region’s businesses take advantage of opportunities presented by the unprecedented growth in our local
defense industry. CT APEX’s services are provided at no charge.
ilable to assist in municipal grant applications that forward economic development in the region, particularly
those consistent with CEDS goals and action items, and issues letters of support to strengthen grant applications where
appropriate. seCTer also provides data profiles for member municipalities which elevate grant proposals for a higher chance
of success. This data presentation can be customized to the specific goals of the grant proposal,
Since seCTer’s regional focus benefits all residents, seCTer will serve each of Waterford’s residents. Municipal support
continues to be particularly essential in maintaining seCTer’s economic development program
funding. Sustaining Waterford’s financial contribution of $8,806.95 and is critical in developing and expanding assistance
to economic development officials and volunteers throughout the region, including Waterford.
seCTer’s Fiscal Year 2024 Annual Report is available on our website at www.seCTer.org.
seCTer's staff and board of directors welcome your participation in all of seCTer’s programs, and are similarly eager to
support your programming and initiatives wherever appropriate. Staff will engage with, and offer assistance to, municipal
members and industry associations with leadership in new initiatives, market research, small business development, funding,
site selection and other economic development activities. We are available to discuss our programs in person or virtually
with your municipal leaders, city commissions or finance board, and invite you to call us to arrange for a meeting with any
or all of these groups. We appreciate your past and continued support and thank you for your assistance in furthering this
vital public-private partnership.
Sincerely,
POS
Paul Whitescarver
Executive Director
(860) 437-4659 X201
The Economic Development Organization for the Economic Development District of southeastern Connecticut

SOUTHEASTERN
CONNECTICUT ENTERPRISE
REGION CORPORATION
FINANCIAL STATEMENTS
AS OF JUNE 30, 2023
TOGETHER WITH
INDEPENDENT AUDITORS’ REPORT,
FEDERAL SINGLE AUDIT REPORTS
AND
STATE SINGLE AUDIT REPORTS
| HOYT
FILIPPETTI &
Mall MALAGHAN LLC
CERTIFIED PUBLIC ACCOUNTANTS

SOUTHEASTERN CONNECTICUT ENTERPRISE
REGION CORPORATION
TABLE OF CONTENTS
JUNE 30, 2023
INDEPENDENT AUDITORS’ REPORT
FINANCIAL STATEMENTS
Statement of Financial Position
Statement of Activities
Statement of Functional Expenses
Statement of Cash Flows
Notes to Financial Statements
GOVERNMENT AUDITING STANDARDS REPORT
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
FEDERAL SINGLE AUDIT
Independent Auditors’ Report on Compliance for Each Major Program
and on Internal Control over Compliance Required by the
Uniform Guidance
Schedule of Expenditures of Federal Awards
Notes to Schedule of Expenditures of Federal Awards
Schedule of Federal Findings and Questioned Costs
Summary Schedule of the Status of Prior Federal Audit Findings
16
21
22
24
26

SOUTHEASTERN CONNECTICUT ENTERPRISE
REGION CORPORATION
TABLE OF CONTENTS
JUNE 30, 2023
STATE SINGLE AUDIT
Independent Auditors’ Report on Compliance for Each Major
State Program and Report on Internal Control over Compliance
Required by The State Single Audit Act
Schedule of Expenditures of State Financial Assistance
‘Schedule of Expenditures of State Financial Assistance
Notes to Schedule of Expenditures of State Financial Assistance
Schedule of State Findings and Questioned Costs
‘Summary Schedule of the Status of Prior State Audit Findings
27
30
31
32
34

HOYT Richard M. Hoyt, Jr., CPA PFS Jason E. Cote, CPA
FILIPPETTI & Paul R. Filippetti, CPA Dipti J. Shah, CPA
imi) MALAGHAN LLC __ Terence J. Malaghan, CPA Fiona J. LaFountain, CPA
K, Elise vonHousen, CPA Stephanie F. Brown, CPA
CERTIFIED PUBLIC ACCOUNTANTS — Susan K. Jones, CPA
INDEPENDENT AUDITORS’ REPORT
To the Board of Directors of
‘Southeastern Connecticut Enterprise Region Corporation
Groton, Connecticut
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS
Opinion
We have audited the accompanying financial statements of Southeastem Connecticut Enterprise Region
Corporation (seCTer), which comprise the statement of financial position as of June 30, 2023, and the related
statements of activities, functional expenses and cash flows for the year then ended, and the related notes to
the financial statements.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial
position of seCTer as of June 30, 2023, and the changes in its net assets and its cash flows for the year then
ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
‘We conducted our audit in accordance with 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. Our responsibilities under those standards are
further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our
report. We are required to be independent of seCTer and to meet our other ethical responsibilities, in
accordance with the 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 audit opinions.
Emphasis of Matter
As discussed in Note 1 to the financial statements, seCTer changed its method of accounting for leases due
to the adoption of Accounting Standards Codification Topic 842, Leases. Our opinion is not modified with
respect to this matter.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America, and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, management is required to evaluate whether there are conditions or
events, considered in the aggregate, that raise substantial doubt about seCTer’s ability to continue as a going
concem within one year after the date that the financial statements are available to be issued.
=5
1041 Poquonnock Road ¢ Groton, CT © 06340 ¢ T: 860-536-9685 « F: 860-536-9684 » office@mysticepa.com

Auditors’ Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our
opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not
guarantee that an audit conducted in accordance with generally accepted auditing standards and
Government Auditing Standards will always detect a material misstatement when it exists, The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud
‘may involve collusion, forgery, intentional omissions, misrepresentations, or the override of intemal control.
Misstatements are considered material if there is a substantial likelihood that, individually or in the
aggregate, they would influence the judgment made by a reasonable user based on the financial statements,
In performing an audit in accordance with generally accepted auditing standards and Government Auditing
Standards, we:
+ Exercise professional judgment and maintain professional skepticism throughout the audit.
*+ Identify and assess the risks of material misstatement of the financial statements, 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 amounts and disclosures
in the financial statements,
* Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing. an
opinion on the effectiveness of seCTer’s internal control. Accordingly, no such opinion is
expressed.
+ Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
* Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about seCTer’s ability to continue as a going concen for a
reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings, and certain internal control related matters
that we identified during the audit,
Supplementary Information
Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The
accompanying schedule of expenditures of federal awards and schedule of expenditures of state financial
assistance, as required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards and the State Single Audit Act,
respectively, are presented for purposes of additional analysis and are not a required part of the 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 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 financial statements or to the 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 and schedule of
expenditures of state financial assistance are fairly stated, in all material respects, in relation to the financial
statements as a whole.

Report on Summarized Comparative Information
We have previously audited seCTer’s 2022 financial statements, and we expressed an unmodified audit
opinion on those audited financial statements in our report dated November 2, 2022. In our opinion, the
summarized comparative information presented herein as of and for the year ended June 30, 2022, is
consistent, in all material respects, with the audited financial statements from which it has been derived.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued a report dated November 13, 2023,
‘on our consideration of seCTer’s intemal control over financial reporting and on our tests of its compliance
with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose
of that report is solely to describe the scope of our testing of internal control over financial reporting and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of seCTer’s
internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering seCTer’s internal control over
financial reporting and compliance.
Hat, Filiggetts % Malaghan, ULC
Groton, Connecticut
‘November 13, 2023

SOUTHEASTERN CONNECTICUT ENTERPRISE
REGION CORPORATION
STATEMENT OF FINANCIAL POSITION
€ JUNE 30, 2023
(With Summarized Financial Information for 2022)
ASSETS
2023 2022
Cash $ 608,601 $ — 139,552
Grants receivable 244,727 159,958
Accounts receivable 55,532 214,569
Prepaid expenses 7,394 10,405
Restricted cash and certificate of deposit 3,980,685 4,063,114
Loans receivable, less allowance for
doubtful loans 3,742,026 4,082,350
Property and equipment, net 4,477 5,577
Operating lease, right-of-use asset, ne 67,877 -
Total assets SHTML F865 535
LIABILITIES AND NET ASSETS
LIABILITIES
Operating lease liability $67,577 $ :
Accounts payable 34,742 24,446
Accrued expenses 26,502 28,943
Due to Connecticut - small business lending partner program 5,152 157
Due to Connecticut - small business express program 45,415 66,991
Deferred grant revenue 521,577 139,145
Total liabilities 700,965 259,682
NET ASSETS
Without donor restrictions 287,343 210,379
With donor restrictions 7,722, 8,145,464
Total net assets 8,010,054 8,415,843
Total liabilities and net assets Tam F_8675,525
The accompanying notes are an integral part of these financial statements.
4

SOUTHEASTERN CONNECTICUT ENTERPRISE
REGION CORPORATION
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2023
(With Summarized Financial Information for 2022)
‘SUPPORT AND REVENUE
Grant revenue
Contributions
Contriubuted nonfinancial assets
Interest income
Program fees
Investment income
Loan allowances
[Net assets released from restrictions:
Satisfaction of purpose restrictions
‘Total support and revenue
EXPENSES
Program services
Loan programs
‘Comprehensive economic development strategy
Procurement technical assistance center
Total program services
‘Supporting services
Management and general
Total expenses
Change in net assets
NET ASSETS, beginning of year
NET ASSETS, end of year
2023
Without Donor With Donor 2022
Restrictions Restrictions Total Total
$s 1,333,648 $ - S$ 1,333,648 2,073,629
145,900 : 145,900 100,623
(30,125 - 30,125 30,712
137,298 81,454 218,752 210,734
49,731 2,383 52,114 26,643
75,368 : 75,368 1,182
(62,199) (458,514) (520,713) (133,130)
48,076. (48,076) = =
1,787,947 (422,753) 1,335,194 2,310,363
143,049 - 143,049 138,390
639,909 - 639,909 541,690
$24,302 : 824,302 837,342
1,607,260 - 1,607,260 7,517,422,
133,723 : 133,723 49,409
1,740,983 : 1,740,983 1,566,831
16,964 (422,753) (405,789) 743,532
270,379 8,145,464 8,415,843 7,672,311
$s 287,343 s 7, 722.711 $_ 8,010,054 8,415,843
The accompanying notes are an integral part ofthese financial statements.
Se

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SOUTHEASTERN CONNECTICUT ENTERPRISE
REGION CORPORATION
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2023
(With Summarized Financial Information for 2022)
2023 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Change in net assets $ 405,789) $ 743,532
Adjustments to reconcile the change in net assets to net
cash provided by operating activities:
Increase in allowance for doubtful loans 520,713, 133,130
Amortization of right-to-use asset 36,048 -
Loss on disposal of fixed assets - 14,964
Depreciation and amortization 1,100 1,645
‘Changes in operating assets and liabilities:
Grants receivable (84,769) (117,214)
Accounts receivable 159,037 16,521
Prepaid expenses 3,011 3,498
Loans receivable (180,389) (101,309)
‘Operating lease liability (36,048) -
Accounts payable 10,296 11,581
Accrued expenses (2,441) (15,715)
Due to Connecticut - small business lending partner program 4,995 :
Due to Connecticut small business express program (21,576) 201)
Deferred grant revenue 382,432 89,145
‘Net cash provided by operating activities 386,620 339,577
NET INCREASE IN CASH, RESTRICTED CASH,
AND CERTIFICATE OF DEPOSIT 386,620 839,577
CASH, RESTRICTED CASH, AND CERTIFICATE
OF DEPOST, beginning of year 4,202,666 3,363,089
CASH, RESTRICTED CASH, AND CERTIFICATE
OF DEPOSIT, end of year $4,589,286 $4,202,666
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash S$ 608,601 $ 139,552
Restricted cash and certificate of deposit 3,980,685
86
NON CASH TRANSACTIONS
Right-of-use asset obtained for new operating
lease liability $ 103,625 $ -
The accompanying notes are an integral part of these financial statements.
1

NOTE 1-
SOUTHEASTERN CONNECTICUT ENTERPRISE
REGION CORPORATION
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
PURPOSE OF ORGANIZATION
Southeastern Connecticut Enterprise Region Corporation (seCTer) is a Connecticut non-
stock corporation formed to stimulate and support economic development and diversification
within Southeastern Connecticut by performing the following activities:
Fostering a climate favorable for economic development and diversification.
Supporting the retention and expansion of existing businesses and the startup of new
businesses.
+ Recruiting new businesses through a marketing program that promotes the region’s
resources and competitiveness.
Coordinating economic development activities among the region’s municipalities,
Participating in efforts to meet the infrastructure needs of a growing regional economy.
Defining and updating the region’s economic goals and strategy.
SeCTer's primary sources of revenue are goverment grants, investment income, interest
income from loans, and contributions.
PRIOR YEAR SUMMARIZED FINANCIAL INFORMATION
The financial statements include certain prior year summarized financial information in total
but not by net asset class. Such information does not include sufficient detail to constitute a
presentation in conformity with accounting principles generally accepted in the United States
‘of America. Accordingly, such information should be read in conjunction with seCTer's
audited financial statements as of and for the year ended June 30, 2022, from which the
summarized information was derived. Certain reclassifications have been made to the 2022
amounts in order to conform to the 2023 presentation.
USE OF ESTIMATES
‘The preparation of financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial statements.
Actual results could differ from those estimates.
CASH EQUIVALENTS
For purposes of the statement of cash flows, seCTer defines cash equivalents as liquid
investments with an original maturity of three months or less, exclusive of restricted cash and
certificate of deposit, which are not available for operations. SeCTer had no cash equivalents
as of June 30, 2023.
RESTRICTED CASH AND CERTIFICATE OF DEPOSIT
Restricted cash and certificate of deposit represents cash restricted to the lending programs of
seCTer.

NOTE1-
SOUTHEASTERN CONNECTICUT ENTERPRISE
REGION CORPORATION
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
NET ASSET CATEGORIES
To ensure observance of limitations and restrictions placed on the use of resources available
to seCTer, the accounts of seCTer are maintained in the following net asset categories:
‘Without Donor Restrictions
Net assets without donor restrictions consist of available resources other than donor restricted
contributions. Included in net assets without donor restrictions are grants, which may be
earmarked for specific purposes.
The board of directors has established the following designation of net assets:
¢ Reserve Fund $309,721
With Donor Restrictions
Net assets with donor restrictions represent contributions and investment earnings thereon
that are restricted by the donor as to purpose, time of expenditure, or with the restriction that
the principal be invested in perpetuity, and that only the earnings thereon be used for support
‘of seCTer’s operations. SeCTer's net assets with donor restrictions consist of amounts
received under the Regional Revolving Loan Fund (RRLF), Small Business Loan Fund
(SBLF), Southeast Regional Development Fund loan fund (SRDF) and the Cares Act
Regional Revolving Loan Cares RRLF). A portion of the income eamed from the Cares
RRLF program, including interest income, is restricted for use in funding related indirect
costs of the program. Loan write-offs serve to reduce net assets with donor restrictions.
REVENUE AND REVENUE RECOGNITION
Grants
Grants are generally considered to be exchange transactions in which the grantor requires the
performance of specified activities.
Entitlement to cost reimbursement grants is based on the expenditure of funds in accordance
with grant restrictions. ‘Therefore, revenue is recognized to the extent of grant expenditures.
Grant receipts in excess of amounts expended are recognized as deferred grant revenue.
Contributions
Contributions are defined as voluntary, nonreciprocal transfers, and include amounts received
to fund various programs.
SeCTer recognizes contributions of cash and other assets as restricted support if they are
received with donor stipulations that limit the use of such assets. When a restriction expires,
that is, when a stipulated time restriction ends or purpose restriction is accomplished,
restricted net assets are reclassified to net assets without donor restrictions and reported in the
statement of activities as net assets released from restrictions.

NOTE1-
SOUTHEASTERN CONNECTICUT ENTERPRISE
REGION CORPORATION
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
REVENUE AND REVENUE RECOGNITION (Continued)
Program Fees
Revenue from program fees are recognized as income when the service is performed.
Interest Income
Interest income is recognized as income when earned. Loans which are over ninety (90)
days past due are considered for non-accrual status and once placed on non-accrual status,
those loans do not accrue interest.
Donated Services
SeCTer recognizes donated services, if they create or enhance non-financial assets, or require
specialized skills, and would typically need to be purchased, if not provided by donation,
General volunteer services do not meet this criteria for recognition in the financial
statements. No donated expenses have been recognized in the accompanying financial
statements.
Contributed Nonfinancial Assets
Contributed nonfinancial assets, including the usage of assets such as rent, are recognized at
their estimated fair market value. For the year ended June 30, 2023, seCTer recognized
$30,125 in donated rent.
‘SeCTer reports gifts of land, buildings, and equipment as unrestricted support unless explicit
donor stipulations specify how the donated assets must be used. Gifts of long-lived assets
with explicit restrictions that specify how the assets are to be used and gifts of cash or other
assets that must be used to acquire longelived assets are reported as restricted support.
Absent explicit donor stipulations about how long those long-lived assets must be
maintained, seCTer reports expirations of donor restrictions in full when the donated or
acquired long-lived assets are placed in service.
PROPERTY AND EQUIPMENT
Property and equipment acquisitions and leasehold improvements that individually exceed
$5,000 are capitalized at cost, if purchased, or fair market value, if donated. Depreciation is
provided over the estimated useful lives of property and equipment on a straight-line basis.
Leaschold improvements are amortized over the life of the asset or the remaining lease term,
whichever is shorter. Repairs and maintenance are charged to expense as incurred.
EXPENSES BY FUNCTION
The financial statements of seCTer report certain categories of expenses that are
attributable to more than one program or supporting function. Therefore, these expenses
require allocation on a reasonable basis that is consistently applied. The expenses that are
allocated include depreciation and office and occupancy, which are both allocated on a
square footage basis, as well as salaries and benefits, which are allocated on the basis of
time and effort studies.
-10-

NOTE 1-
NOTE2-
SOUTHEASTERN CONNECTICUT ENTERPRISE
REGION CORPORATION
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
OPERATING LEASE RIGHT-OF-USE ASSET
‘The operating lease right-of-use asset is an intangible asset that represents the value of the
lessee’s right to use a leased asset. For seCTer, the asset represents the right to use the office
space where seCTer is located. This asset is presented net of accumulated amortization. The
amortization of this asset is included in lease expense,
APPLICATION OF ACCOUNTING STANDARDS
As of July 1, 2022, seCTer changed its method of accounting for leases due to the adoption
of Accounting Standards Codification Topic 842, Leases (see Note 13).
INCOME TAXES
The Internal Revenue Service has determined that seCTer is exempt ftom federal income
‘taxes on exempt function income as a public charity under Section 501(c)(3) of the Internal
Revenue Code. Consequently, no provision for income taxes has been made in the
accompanying financial statements.
SeCTer did not recognize any liability for uncertain tax positions as defined by accounting
principles generally accepted in the United States of America.
‘The federal tax return of seCTer for the year ended June 30, 2023 is subject to examination
by the IRS, generally for three years after it has been filed.
SUBSEQUENT EVENTS
Subsequent events have been evaluated through November 13, 2023, which is the date the
financial statements were available to be issued. There were no subsequent events identified
that require disclosure.
CONCENTRATIONS
CONCENTRATIONS OF CREDIT RISK
SeCTer’s financial instruments that are exposed to concentrations of credit risk consist
primarily of cash, grants and accounts receivable, restricted cash and certificate of deposit,
and loans receivable. SeCTer places its deposits in high credit quality institutions and at
times such deposits may exceed federal depository insurance.
Loans receivable consist of loans to Southeastern Connecticut businesses under state, federal,
and privately funded loan programs. Grants receivable consist primarily of amounts due
under a contract with a federal agency. Accounts receivable consists primarily of the current
interest payments due on the outstanding loans, The loans are generally collateralized by
business assets and personal guarantees of the borrower. Loans which are over ninety (90)
days past due are considered for non-accrual status. Once placed on non-acerual stafus, those
loans do not accrue interest, and any payments are applied to principal. Management
maintains an allowance for potential credit losses, and such losses have been within
management expectations.
ole

SOUTHEASTERN CONNECTICUT ENTERPRISE
REGION CORPORATION
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE2- CONCENTRATIONS (Continued)
REVENUE CONCENTRATIONS
Grants from U.S. Department of Defense (DOD) and Connecticut Department of Economie
and Community Development (DECD), comprised 72% of total revenues for the year ended
June 30, 2023.
NOTE3- LIQUIDITY AND AVAILABILITY OF RESOURCES
‘The following reflects seCTer’s financial assets as of the statement of financial position
date, reduced by amounts that are not available for general use due to contractual or
donor-imposed restrictions within one year of the statement of financial position date.
Financial assets, at year-end
Cash S$ 608,601
Grants receivable 244,727
Accounts receivable $5,532
Restricted cash and certificate of deposit 3,980,685
Loans receivable, net 3,742,026
Unused line of credit
Less those unavailable for general expenditures within
‘one year, due to:
Contractual or donor-imposed restrictions 7.722,
Board designations:
Reserve fund 309,721
Financial assets available to meet cash needs
for general expenditures within one year $749,139
S181
NOTE4- LOANS RECEIVABLE
‘A summary of loans receivable by loan program as of June 30, 2023 is as follows:
Connecticut Small Business Boost Fund $ 37,500
Regional Revolving Loan Fund 179,234
Regional Revolving Loan Cares Fund 1,271,825
‘Small Business Loan Fund 185,411
Southeast Regional Development Fund 2,344,763
4,018,733
Less: allowance for doubtful loans 276,707
53,242,026,
+12.

NOTES-
NOTE 6-
NOTE7-
NOTE 8-
SOUTHEASTERN CONNECTICUT ENTERPRISE
REGION CORPORATION
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
RESTRICTED CASH AND CERTIFICATE OF DEPOSIT
Restricted cash and certificate of deposit consist of the following as of June 30, 2023:
Description Total
Certificate of deposit $169,384
Cash and cash equivalents 3.811301.
S_3,980,685
PROPERTY AND EQUIPMENT
A summary of property and equipment as of June 30, 2023 is as follows:
Office equipment $27,424
‘Computer equipment 14,125
41,549
Less: accumulated depreciation and amortization 37,072
$s 4477.
Depreciation and amortization expense for the year ended June 30, 2023 was $1,100.
NOTE PAYABLE
$150,000 line of credit with a local bank. The line of
credit, which is due on demand, bears an interest rate of
3% and is collateralized by a certificate of deposit
maintained with the bank. There were no borrowings
on the line of credit through June 30, 2023. $ :
CONTRACT BALANCES
Accounts receivable and deferred revenue were as follows as of June 30, 2023 and 2022:
2023, 2022
Grants Receivable $244,727 $ 159,958
Program income receivable $55,532, _$ 214,569.
Deferred grant revenue $__ 521577, _$ 139,145
fis

SOUTHEASTERN CONNECTICUT ENTERPRISE
REGION CORPORATION
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE9- CONTINGENCIES
Grants
SeCTer participates in various federal and state grant programs. These programs are subject
to program compliance audits pursuant to the Federal and State Single Audit Acts. The
amount of expenditures which may be disallowed by the granting agencies cannot be
determined at this time, although seCTer anticipates the amounts, if any, to be immaterial.
NOTE 10- NET ASSETS WITH DONOR RESTRICTIONS
‘Net assets with donor restrictions consist of the following at June 30, 2023:
Southeast Regional Development Fund $ 3,927,947
Regional Revolving Loan Fund 971,811
Regional Revolving Loan Cares Fund 1,914,937
‘Small Business Loan Fund 795,416
Lend a Hand Loan Fund
112,600
7,722,711
‘The following assets comprise net assets with donor restrictions at June 30, 2023:
Loans receivable, net $ 3,742,026
Restricted cash and certificate of deposit 3,980,685
7,722,711
Net assets released from restrictions for the year ended June 30, 2023 are as follows:
Purpose restrictions:
Regional Revolving Loan Care Funds $48,076
NOTE 11- DISAGGREGATION OF REVENUE
‘The following table disaggregates seCTer’s support and revenue for the year ended June 30,
2023:
Revenue from contracts with customers
Satisfied over time
Program fees $52,114
Grant revenue 1,333,648
Interest income-loans receivable 218,752
1,604,514
Other support and revenue
Contributions 145,900
Contributed nonfinancial assets 30,125
Investment income 75,368
Loan allowances (520,713)
—~ 269,320)"
Total support and revenue S 1,335,194
-14-

NOTE 12-
NOTE 13-
SOUTHEASTERN CONNECTICUT ENTERPRISE
REGION CORPORATION
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
PENSION PLAN
SeCTer maintains a defined contribution pension plan in which substantially all employees
Participate. Under the terms of the plan, seCTer contributed 8% of eligible employee
compensation. Pension expense for the year ended June 30, 2023 totaled $67,154,
LEASE AGREEMENT
SeCTer leases office space under a lease which ends on March 31, 2025. Under the terms of
the lease, seCTer pays a basic rent per square foot which is subject to review and
renegotiation every five years, plus its proportionate share of certain taxes and operating
expenses of the leased property,
As of July 1, 2022, seCTer changed its method of accounting for leases due to the adoption
of Accounting Standards Codification Topic 842, Leases. Upon adoption, seCTer
recognized a right-of-use asset and an operating lease liability in the amount of $103,625
using a weighted-average discount rate of 5.00%. Operating cash flows for this operating
lease totaled $40,242 for the year ended June 30, 2023.
At June 30, 2023, the lease had a weighted-average lease term of 1.75 years with future
‘minimum lease payments as follows:
2024 $ 40,242
2025 30,182
Total undiscounted cash flows 70,424
Less: present value discount 2,847
Operating lease liability, net S67.577
At June 30, 2023, the operating lease right-to-use lease asset consisted of the following:
Cost S$ 103,625
Less accumulated amortization 36,048
Net carrying balance 3 67,577
Total occupancy expense recognized for the year ended June 30, 2023 was $72,895 of
which $40,242 was operating lease expense, $30,125 was contributed rent, and $2,528 was
for utilities.
ais

HOYT Richard M. Hoyt, Jr., CPAPFS Jason E. Cote, CPA
Ry FILIPPETTI & Paul R. Filippetti, CPA Dipti J. Shah, CPA
Imi MALAGHAN LLC Terence J. Malaghan, CPA Fiona J. LaFountain, CPA
CERTFED BE RECOUNT; ~—-K-Blise vonHousen, CPA Stephanie F. Brown, CPA
CERTIFIED PUBLIC ACCOUNTANTS Susan K Jones, CRA ‘ephanie F. Brown,
c
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 Board of Directors of
‘Southeastem Connecticut Enterprise Region Corporation
Groton, 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 Southeastern
Connecticut Enterprise Region Corporation (seCTer), which comprise the statement of financial position as
of June 30, 2023, and the related statements of activities, functional expenses and cash flows for the year then
ended, and the related notes to the financial statements, and have issued our report thereon dated November
13,2023.
€ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
In planning and performing our audit of the financial statements, we considered seCTer’s intemal 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 opinion on the financial statements, but not for the purpose
of expressing an opinion on the effectiveness of seCTer’s intemal control. Accordingly, we do not express
‘an opinion on the effectiveness of seCTer’s intemal 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
intemal 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
defici in internal control that we consider to be material weaknesses. However, material weaknesses
or significant deficiencies may exist that were not identified.
16
1041 Poquonnock Road ¢ Groton, CT ¢ 06340 © T: 860-536-9685 ¢ F: 860-536-9684 e office@mysticcpa.com

REPORT ON COMPLIANCE AND OTHER MATTERS
As part of obtaining reasonable assurance about whether seCTer’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