Board of Finance Regular Meeting Agenda (PDF)

FIFTEEN ROPE FERRY ROAD
WATERFORD, CT 06385-2886
Waterford Town Hall
Regular Meeting
1.
BOARD OF FINANCE
AGENDA
Establishment of a quorum and call to order.
Public Comment.
Approval and acceptance of minutes of April 14, 2021.
PHONE: 860-442-0553
www. waterfordct.org
May 19, 2021
7:00 p.m.
Review of the 2021 Audit Engagement Letter from CLA (CliftonLarsonAllen LLP).
To consider and act on a request from Alan Wilenski, Tax Collector, to review a list of tax
accounts to approve for transfer to suspense for the current fiscal year.
To consider and act on a transfer request from the Board of Selectmen, contingent upon
their approval, on behalf of Jeff Lathrop, Interim Director of Fire Services, for an Out of
Series Transfer as follows:
Account | Description Approved | Current Account Account Revised
Budget Available Increase Decrease Available
Amount Budget Budget
Amount Amount
10123- | Dues, 48,675.00 | 18,832.00 (11,050.00) | 7,782.33
52050 Conferences &
Education
10123- | Office 3,000.00 2,791.50 (600.00) 2,191.50
54060 Equipment
10123- | Firefighting 30,000.00 | 8,230.76 (6,000.00) | 2,230.76
54218 | Equipment
10123- | Heating Oil 45,410.00 | (12.55) 50.00 37.54
52090
10123- | Auto Repairs 88,000.00 | (15,404.28) | 17,600.00 2,195.72
53070 Total 17,650.00 | (17,650.00)

Board of Finance Meeting — May 19, 2021
Page 2.
7.
To consider and act on a transfer request from the Board of Selectmen, contingent upon
their approval, on behalf of Kimberly Allen, Finance Director, for an Out of Series Transfer
as follows:
Account | Description Approved | Current Account Account Revised
Budget Available | Increase Decrease Available
Amount Budget Budget
Amount Amount
10107- | Dues, 4,240.00 2,345.00 (70.00) 2,275.00
52050 Conferences
10107- | Furniture 0.00 0.00 70.00 70.00
54010 Total 70.00 (70.00)
To consider and act on a transfer request from the Board of Selectmen, contingent upon
their approval, on behalf of Paige Walton, Assessor, for an Out of Series Transfer as
follows:
Account | Description Approved | Current Account Account Revised
Budget Available | Increase Decrease Available
Amount Budget Budget
_ { Amount Amount
10104- | Postage 1,204.00 (45.13) 100.00 54.87
52020
10104- | Administration | 196,/88.G0 | 33,363.02 (100.00) 33,263.02
51110 Total 100.00 (100.00)
To consider and act on a transfer request from the Board of Selectmen, contingent upon
their approval, on behalf of Steven Sinagra, Emergency Management Director, for an Out
of Series Transfer as follows:
Account | Description Approved | Current Account Account Revised
Budget Available | Increase Decrease Available
Amount Budget Budget
Amount Amount
10122- | Dues, 22,084.00 | 19,696.00 (8,346.71) 11,349.29
52050 | Conference &
Education
10122- | Disp. Center 1.00 1.00 8,346.71 8,346.71
54120 Equipment
Total 8,346.71 | 8,346.71

Board of Finance Meeting — May 19, 2021
Page 3.
10. To consider and act on a transfer request from the Board of Selectmen, contingent upon
11.
12.
13.
14.
15
16.
17.
their approval, on behalf of Chief Brett Mahoney, IT Chairman, for an Out of Series
Transfer as follows:
Account | Description Approved | Current Account Account Revised
Budget Available | Increase Decrease Available
Amount Budget Budget
Amount Amount
10147- | Service 773,708.00 | 77,424.72 (54,000.00) | 23,424.72
52043 Contracts
10147- -| Computer 51,260.00 | 75.35 54,000.00 54,075.35
54130 Equipment
Total 54,000.00 | (54,000.00)
budget.
Old Business:
. New Business:
Liaison Reports
Correspondence
Establish Tax Rate for Fiscal Year 2021-2022.
Discussion: Board of Education FY21 Balance Projection and Capital/CNR Funding.
Review List of FY21/22 Revenues and Estimated Tax Rate Based upon the RTM 2022
a. Craig Merriman, Chair, Waterford Board of Education, FY 22 Budget Update.
b. Virginia Bielucki, Town Accountant, Periodic Financial Statements dated April 13,
2021.
c. Virginia Bielucki, Town Accountant, Status of General Fund Unassigned Balance
dated April 13, 2021.
d. Virginia Bielucki, Town Accountant, Status of Contingency Fiscal Year 2021 dated
Apri! 20, 2021.
18. Adjournment
Ronald Fedor, Chairman

CLA (CiiftonLarsonAllen LLP}
29 South Main Street
4% Floor
West Hartford, Connecticut 06107
860-561-4000 | fax 860-521-9244
CLAconnect.com
May 5, 2021
Board of Finance and Management
Town of Waterford, Connecticut
142 East Main Street
Meriden, CT 06450-8022
Dear Ladies and Gentlemen:
We are pleased to confirm our understanding of the terms and objectives of our engagement and the nature
and limitations of the audit and nonaudit services CliftonLarsonAllen LLP (“CLA,” “we,” “us,” and “our”) will
provide for the Town of Waterford, Connecticut (“you,” “your,” or “the entity”) for the year ended June 30,
2021.
Vanessa E. Rossitto, CPA is responsible for the performance of the audit engagement.
Audit services
We will audit the financial statements of the governmental activities, the business-type activities, each major
fund, and the aggregate remaining fund information, which collectively comprise the basic financial statements
of the Town of Waterford, Connecticut, as of and for the year ended June 30, 2021, and the related notes to the
financial statements.
The Governmental Accounting Standards Board (GASB) provides for certain required supplementary information
(RSI) to accompany the entity’s basic financial statements. The RS! will be subjected to certain limited
procedures, but will not be audited.
1. Management’s discussion and analysis.
2. Budgetary comparison schedules.
3. GASB-required supplementary pension and OPEB information.
We will also evaluate and report on the presentation of the following supplementary information other than RSI
accompanying the financial statements in relation to the financial statements as a whole:
1. Schedule of expenditures of federal awards
2. Schedule of expenditures of state financial assistance
3. Combining and individual fund financial statements
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Town of Waterford, Connecticut
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The following information other than RSI accompanying the financial statements will not be subjected to the
auditing procedures applied in our audit of the financial statements and our auditors’ report will not provide an
opinion or any assurance on that information:
1. Introductory section
2. Statistical tables
Nonaudit services
We will also provide the following nonaudit services:
e Preparation of your financial statements, schedule of expenditures of federal awards, schedule of
expenditures of state financial assistance, and related notes.
e Preparation and submission of the electronic Data Collection Form SF-SAC
e Preparation of adjusting journal entries.
Audit objectives
The objective of our audit is the expression of opinions about whether your basic financial statements are fairly
presented, in all material respects, in conformity with accounting principles generally accepted in the United
States of America (U.S. GAAP). Our audit will be conducted in accordance with auditing standards generally
accepted in the United States of America (U.S. GAAS); the standards for financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States; 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) and the Connecticut State Single Audit Act (State
Single Audit). Our audit will include tests of your accounting records, a determination of major program(s) in
accordance with the Uniform Guidance and the State Single Audit, and other procedures we consider necessary
to enable us to express opinions and render the required reports. We will apply certain limited procedures to
the RSI in accordance with U.S. GAAS. However, we will not express an opinion or provide any assurance on the
RSI because the limited procedures do not provide us with sufficient evidence to express an opinion or provide
any assurance. We will also perform procedures to enable us to express an opinion on whether the
supplementary information as identified above other than RSI accompanying the financial statements is fairly
stated, in all material respects, in relation to the financial statements as a whole.
The objectives of our audit also include:
e Reporting on internal control over financial reporting and compliance with the provisions of laws,
regulations, contracts, and award agreements, noncompliance with which could have a material effect
on the financial statements in accordance with Government Auditing Standards.
e Reporting on internal contro! over compliance related to major programs and expressing an opinion (or
disclaimer of opinion) on compliance with federal and state statutes, regulations, and the terms and
conditions of federal and state awards that could have a direct and material effect on each major
program in accordance with the Uniform Guidance and the State Single Audit.

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Town of Waterford, Connecticut
Page 3
The Government Auditing Standards report on internal control over financial reporting and on compliance and
other matters will include a paragraph that states (1) that the purpose of the report is solely to describe the
scope of our testing of internal control and compliance and the result of that testing, and not to provide an
opinion on the effectiveness of the entity’s internal control or on compliance, and (2) that the report is an
integral part of an audit performed in accordance with Government Auditing Standards in considering the
entity’s internal control and compliance. Both the Uniform Guidance report and the State Single Audit report on
internal control over compliance will each include a paragraph that states that the purpose of the report on
internal control over compliance is solely to describe the scope of our testing of internal control over compliance
and the result of that testing based on the requirements of the Uniform Guidance and the State Single Audit,
respectively. All reports will state that the report is not suitable for any other purpose.
We will issue written reports upon completion of our audit of your financial statements and compliance with
requirements applicable to major programs. We cannot provide assurance that unmodified opinions will be
expressed. Circumstances may arise in which it is necessary for us to modify our opinions, add an emphasis-of-
matter or other-matter paragraph(s), or withdraw from the engagement. If our opinions on the financial
statements or the single audit compliance opinions are other than unmodified, we will discuss the reasons with
you in advance. If circumstances occur related to the condition of your records, the availability of sufficient,
appropriate audit evidence, or the existence of a significant risk of material misstatement of the financial
statements or material noncompliance caused by error, fraudulent financial reporting, or misappropriation of
assets, which in our professional judgment prevent us from completing the audit or forming opinions on the
financial statements or an opinion on compliance, we retain the right to take any course of action permitted by
professional standards, including declining to express opinions or issue reports, or withdrawing from the
engagement.
Auditor responsibilities, procedures, and limitations
We will conduct our audit in accordance with U.S. GAAS and the standards for financial audits contained in
Government Auditing Standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the basic financial statements as a whole are free from material
misstatement, whether due to fraud or error. An audit involves performing procedures to obtain sufficient
appropriate audit evidence about the amounts and disclosures in the basic financial statements. The procedures
selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of
the financial statements, whether due to fraud or error. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of significant accounting estimates made by management, as
well as evaluating the overall presentation of the basic financial statements.
There is an unavoidable risk, because of the inherent limitations of an audit, together with the inherent
limitations of internal control, that some material misstatements or noncompliance may not be detected, even
though the audit is properly planned and performed in accordance with U.S. GAAS, Government Auditing
Standards, the Uniform Guidance and the State Single Audit. Because we will not perform a detailed
examination of all transactions, material misstatements, whether from (1) errors, (2) fraudulent financial
reporting, (3) misappropriation of assets, or (4) violations of laws or governmental regulations that are
attributable to the entity or to acts by management or employees acting on behalf of the entity, may not be
detected. Because the determination of waste and abuse is subjective, Government Auditing Standards do not
require auditors to perform specific procedures to detect waste or abuse in financial audits nor do they expect
auditors to provide reasonable assurance of detecting waste or abuse.

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Page 4
In addition, an audit is not designed to detect immaterial misstatements or violations of laws or governmental
regulations that do not have a direct and material effect on the financial statements or on major programs.
However, we will inform the appropriate level of management and those charged with governance of any
material errors, fraudulent financial reporting, or misappropriation of assets that come to our attention. We will
also inform the appropriate level of management and those charged with governance of any violations of laws
or governmental regulations that come to our attention, unless clearly inconsequential. We will include such
matters in the reports required for a single audit.
In making our risk assessments, we consider internal control relevant to the entity’s preparation and fair
presentation of the basic financial statements and compliance 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 the
entity’s internal control. Tests of controls may be performed to test the effectiveness of certain controls that we
consider relevant to preventing and detecting fraud or errors that are material to the financial statements and
to preventing and detecting misstatements resulting from noncompliance with provisions of laws, regulations,
contracts, and grant agreements that have a material effect on the financial statements. Our tests, if performed,
will be less in scope than would be necessary to render an opinion on internal control and, accordingly, no
opinion will be expressed in our report on internal control issued pursuant to Government Auditing Standards.
As required by the Uniform Guidance and the State Single Audit, we will perform tests of controls over
compliance to evaluate the effectiveness of the design and operation of controls that we consider relevant to
preventing or detecting material noncompliance with the direct and material compliance requirements
applicable to each major federal and state award program. However, our tests will be less in scope than would
be necessary to render an opinion on those controls and, accordingly, no opinion will be expressed in our report
on internal control issued pursuant to the Uniform Guidance and the State Single Audit.
An audit is not designed to provide assurance on internal control or to identify deficiencies, significant
deficiencies, or material weaknesses in internal control. However, we will communicate to you in writing
significant deficiencies or material weaknesses in internal control relevant to the audit of the basic financial
statements that we identify during the audit that are required to be communicated under AICPA professional
standards, Government Auditing Standards, the Uniform Guidance, and the State Single Audit.
As part of obtaining reasonable assurance about whether the financial statements are free of material
misstatement, we will perform tests of the entity’s compliance with the provisions of laws, regulations,
contracts, and grant agreements that have a material effect on the financial statements. However, the objective
of our audit will not be to provide an opinion on overall compliance and we will not express such an opinion in
our report on compliance issued pursuant to Government Auditing Standards.
We will include in our report on internal control over financial reporting and on compliance relevant information
about any identified or suspected instances of fraud and any identified or suspected noncompliance with
provisions of laws, regulations, contracts, or grant agreements that may have occurred that are required to be
communicated under Government Auditing Standards.
Both the Uniform Guidance and the State Single Audit require that we also plan and perform the audit to obtain
reasonable assurance about whether the auditee has complied with federal and state statutes, regulations, and
the terms and conditions of federal and state awards that may have a direct and material effect on each of the

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: Yord, Connecticut
Page 5
entity’s major programs. Our procedures will consist of tests of transactions and other applicable procedures
described in the “OMB Compliance Supplement” and the “Compliance Supplement to the State Single Audit Act”
for the types of compliance requirements that could have a direct and material effect on each of the entity’s
major programs. The purpose of these procedures will be to express an opinion on the entity’s compliance with
requirements applicable to each of its major programs in our report on compliance issued pursuant to the
Uniform Guidance and the State Single Audit.
We will evaluate the presentation of the schedule of expenditures of federal awards and the schedule of
expenditures of state financial assistance accompanying the financial statements in relation to the financial
statements as a whole. We will make certain inquiries of management and evaluate the form, content, and
methods of preparing each schedule to determine whether the information complies with U.S. GAAP, the
Uniform Guidance, and the State Single Audit, the method of preparing has not changed from the prior period,
and the information is appropriate and complete in relation to our audit of the financial statements. We will
compare and reconcile-each schedule to the underlying accounting records and other records used to prepare
the financial statements or to the financial statements themselves.
Our responsibility as auditors is limited to the period covered by our audit and does not extend to any later
periods for which we are not engaged as auditors.
Management responsibilities
Our audit will be conducted on the basis that you (management and, when appropriate, those charged with
governance) acknowledge and understand that you have certain responsibilities that are fundamental to the
conduct of an audit.
You are responsible for the preparation and fair presentation of the financial statements, RSI, the schedule of
expenditures of federal awards, and the schedule of expenditures of state financial assistance in accordance
with U.S. GAAP. Management is also responsible for identifying all federal and state awards received,
understanding and complying with the compliance requirements, and for the preparation of the schedule of
expenditures of federal awards, and schedule of expenditures of state financial assistance (including notes and
noncash assistance received) in accordance with the requirements of the Uniform Guidance and the State Single
Audit.
Management’s responsibilities include the selection and application of accounting principles; recording and
reflecting all transactions in the financial statements; determining the reasonableness of significant accounting
estimates included in the financial statements; adjusting the financial statements to correct materia!
misstatements; and confirming to us in the management representation letter that the effects of any
uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period
presented are immaterial, both individually and in the aggregate, to the financial statements taken as a whole.
Management is responsible for compliance with applicable laws and regulations and the provisions of contracts
and grant agreements, including compliance with federal and state statutes, regulations, and the terms and
conditions of federal and state awards applicable to the entity’s federal and state programs. Your responsibilities
also include identifying significant contractor relationships in which the contractor has responsibility for program
compliance and for the accuracy and completeness of that information.

Town of Waterford, Connecticut
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You are responsible for the design, implementation, and maintenance of effective internal control, including
internal control over compliance, and for evaluating and monitoring ongoing activities to help ensure that
appropriate goals and objectives are met relevant to the preparation and fair presentation of financial
statements that are free from material misstatement, whether due to fraud or error; and that there is
reasonable assurance that government programs are administered in compliance with compliance
requirements.
You are responsible for the design, implementation, and maintenance of internal controls to prevent and detect
fraud; assessing the risk that the financial statements may be materially misstated as a result of fraud; and for
informing us about all known or suspected fraud affecting the entity involving (1) management, (2) employees
who have significant roles in internal control, and (3) others where the fraud could have a material effect on the
financial statements. Your responsibilities include informing us of your knowledge of any allegations of fraud or
suspected fraud affecting the entity received in communications from employees, former employees, grantors,
regulators, or others. In addition, you are responsible for implementing systems designed to achieve compliance
with applicable laws and regulations and the provisions of contracts and grant agreements, including compliance
with federal and state statutes, regulations, and the terms and conditions of federal and state awards applicable
to the entity’s federal and state programs; identifying and ensuring that the entity complies with applicable
laws, regulations, contracts, and grant agreements, including compliance with federal and state statutes,
regulations, and the terms and conditions of federal and state awards applicable to the entity’s federal and state
programs; and informing us of all instances of identified or suspected noncompliance whose effects on the
financial statements should be considered.
You are responsible for taking timely and appropriate steps to remedy any fraud and noncompliance with
provisions of laws, regulations, contracts, and grant agreements that we may report. Additionally, as required by
the Uniform Guidance and the State Single Audit, it is management’s responsibility to evaluate and monitor
noncompliance with federal and state statutes, regulations, and the terms and conditions of federal and state
awards; take prompt action when instances of noncompliance are identified, including noncompliance identified
in audit findings; and to follow up and take prompt corrective action on reported audit findings and to prepare a
summary schedule of prior audit findings and a corrective action plan.
You are responsible for ensuring that management is reliable and for providing us with (1) access to all
information of which you are aware that is relevant to the preparation and fair presentation of the financial
statements, such as records, documentation, and other matters, and for the accuracy and completeness of that
information, and for ensuring the information is reliable and properly reported; (2) access to personnel,
accounts, books, records, supporting documentation, and other information as needed to perform an audit
under the Uniform Guidance and the State Single Audit; (3) additional information that we may request for the
purpose of the audit; and (4) unrestricted access to persons within the entity from whom we determine it
necessary to obtain audit evidence. You agree to inform us of events occurring or facts discovered subsequent
to the date of the financial statements that may affect the financial statements.
You agree to include our report on the schedule of expenditures of federal awards and our report on the
schedule of expenditures on state financial assistance in any document that contains and indicates that we have
reported on the schedule of expenditures of federal awards and the schedule of expenditures of state financial
assistance. You also agree to include the audited financial statements with any presentation of the schedule of
expenditures of federal awards and the schedule of expenditures of state financial assistance that includes our

May 5, 2022
Town of Waterford, Connecticut
report thereon or make the audited financial statements readily available to intended users of the schedule of
expenditures of federal awards and the schedule of expenditures of state financial assistance no later than the
date the schedule of expenditures of federal awards and the schedule of expenditures of state financial
assistance are issued with our report thereon. Your responsibilities include acknowledging to us in the
representation letter that (1) you are responsible for presentation of the schedule of expenditures of federal
awards in accordance with the Uniform Guidance, and the presentation of the schedule of expenditures of state
financial assistance in accordance with the state single audit; (2) you believe the schedule of expenditures of
federal awards, including its form and content, is fairly presented in accordance with the Uniform Guidance, and
the schedule of expenditures of state financial assistance, including its form and content, is fairly presented in
accordance with the state single audit; (3) the methods of measurement or presentation have not changed from
those used in the prior period (or, if they have changed, the reasons for such changes); and (4) you have
disclosed to us any significant assumptions or interpretations underlying the measurement or presentation of
the schedule of expenditures of federal awards and the schedule of expenditures of state financial assistance.
Management is responsible for the preparation and fair presentation of other supplementary information in
accordance with U.S. GAAP. You agree to include our report on the supplementary information in any document
that contains, and indicates that we have reported on, the supplementary information. You also agree to include
the audited financial statements with any presentation of the supplementary information that includes our
report thereon or make the audited financial statements readily available to users of the supplementary
information no later than the date the supplementary information is issued with our report thereon. You agree
to provide us written representations related to the presentation of the supplementary information.
Management is responsible for providing us with a written confirmation concerning representations made by
you and your staff to us in connection with the audit and the presentation of the basic financial statements and
RSI. During our engagement, we will request information and explanations from you regarding, among other
matters, the entity’s activities, internal control, future plans, specific transactions, and accounting systems and
procedures. The procedures we will perform during our engagement and the conclusions we reach as a basis for
our report will be heavily influenced by the representations that we receive in the representation letter and
otherwise from you. Accordingly, inaccurate, incomplete, or false representations could cause us to expend
unnecessary effort or could cause a material fraud or error to go undetected by our procedures. In view of the
foregoing, you agree that we shall not be responsible for any misstatements in the entity’s financial statements
that we may fail to detect as a result of misrepresentations made to us by you.
Management is responsible for establishing and maintaining a process for tracking the status of audit findings
and recommendations. Management is also responsible for identifying and providing report copies to us of
previous financial audits, attestation engagements, performance audits, or other studies related to the
objectives discussed in the “Audit objectives” section of this letter. This responsibility includes relaying to us
corrective actions taken to address significant findings and recommendations resulting from those audits,
attestation engagements, performance audits, or other engagements or studies. You are also responsible for
providing management’s views on our current findings, conclusions, and recommendations, as well as your
planned corrective actions for the report, and for the timing and format for providing that information.

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Town of Waterford, Connecticut
Page 8
Responsibilities and limitations related to nonaudit services
For all nonaudit services we may provide to you, management agrees to assume all management
responsibilities; oversee the services by designating an individual, preferably within senior management, who
possesses suitable skill, knowledge, and/or experience to understand and oversee the services; evaluate the
adequacy and results of the services; and accept responsibility for the results of the services. Management is
also responsible for ensuring that your data and records are complete and that you have received sufficient
information to oversee the services.
The responsibilities and limitations related to the nonaudit services performed as part of this engagement are as
follows:
e Weill prepare a draft of your financial statements, schedule of expenditures of federal awards,
schedule of expenditures of state financial assistance and related notes in conformity with U.S. GAAP,
the Uniform Guidance and the State Single Audit based on information provided by you. Since the
preparation and fair presentation of the financial statements, schedule of expenditures of federal
awards, and schedule of expenditures of state financial assistance is your responsibility, you will be
required to acknowledge in the representation letter our assistance with preparation of the financial
statements, schedule of expenditures of federal awards, and schedule of expenditures of state financial
assistance and that you have reviewed and approved the financial statements, schedule of expenditures
of federal awards, schedule of expenditures of state financial assistance and related notes prior to their
issuance and have accepted responsibility for them. You have a responsibility to be in a position in fact
and appearance to make an informed judgment on those financial statements, schedule of expenditures
of federal awards, and schedule of expenditures of state financial! assistance.
e Weill prepare a draft of the data collection form. You will be required to review and approve this
draft to affirm that it is complete and accurate. We will also submit to the federal audit clearinghouse
after your approval.
e Weill propose adjusting journal entries as needed. You will be required to review and approve those
entries and to understand the nature of the changes and their impact on the financial statements.
These nonaudit services do not constitute an audit under Government Auditing Standards and such services will
not be conducted in accordance with Government Auditing Standards.
Use of financial statements
The financial statements and our report thereon are for management's use. If you intend to reproduce and
publish the financial statements and our report thereon, they must be reproduced in their entirety. Inclusion of
the audited financial statements in a document, such as an annual report or an offering document, should be
done only with our prior approval of the document. You are responsible to provide us the opportunity to review
such documents before issuance.
If the parties (i.e., you and CLA) agree that CLA will not be involved with your official statements related to
municipal securities filings or other offering documents, we will require that any official statements or other
offering documents issued by you with which we are not involved clearly indicate that CLA is not involved with
the contents of such documents. Such disclosure should read as follows:

May 5, 2024
Town of Waterford, Connecticut
Page 9
CliftonLarsonAllen LLP, our independent auditor, has not been engaged to perform and has not
performed, since the date of its report included herein, any procedures on the financial statements
addressed in that report. CliftonLarsonAllen LLP also has not performed any procedures relating to this
offering document.
With regard to the electronic dissemination of audited financial statements, including financial statements
published electronically on your website or submitted on a regulator website, you understand that electronic
sites are a means to distribute information and, therefore, we are not required to read the information
contained in those sites or to consider the consistency of other information in the electronic site with the
original document.
We may issue preliminary draft financial statements to you for your review. Any preliminary draft financial
statements should not be relied on or distributed.
Engagement administration and other matters
We understand that your employees will prepare all confirmations, account analyses, and audit schedules we
request and will locate any documents or invoices selected by us for testing. A list of information we expect to
need for our audit and the dates required will be provided in a separate communication.
At the conclusion of the engagement, we will complete the auditor sections of the electronic Data Collection
Form SF-SAC and perform the steps to certify the Form SF-SAC and single audit reporting package. It is
management’s responsibility to complete the auditee sections of the Data Collection Form. We will create the
single audit reporting package PDF file for submission; however, it is management’s responsibility to review for
completeness and accuracy and electronically submit the reporting package (including financial statements,
schedule of expenditures of federal awards, summary schedule of prior audit findings, auditors’ reports, and
corrective action plan) along with the Data Collection Form to the federal audit clearinghouse and, if
appropriate, to pass-through entities. The Data Collection Form and the reporting package must be
electronically submitted within the earlier of 30 calendar days after receipt of the auditors’ reports or nine
months after the end of the audit period.
We will make the required submissions to the Connecticut State Office of Policy and Management; however,
management is responsible for distribution of the reporting package (including financial statements, schedule of
expenditures of state financial assistance, summary schedule of prior audit findings, auditors’ reports, and
corrective action plan) to State pass-through entities.
We will provide copies of our reports to the entity; however, management is responsible for distribution of the
reports and the financial statements. Unless restricted by law or regulation, or containing confidential or
sensitive information, copies of our reports are to be made available for public inspection.
The audit documentation for this engagement is the sole and exclusive property of CLA and constitutes
confidential and proprietary information. However, subject to applicable laws and regulations, audit
documentation and appropriate individuals will be made available upon request and in a timely manner to the
State of Connecticut, or its designee, a federal agency providing direct or indirect funding, or the U.S.
Government Accountability Office for purposes of a quality review of the audit, to resolve audit findings, or to
carry out oversight responsibilities. We will notify you of any such request. If requested, access to such audit

Ray &, 2024
Town of Waterford, Connecticut
Page 10
documentation will be provided under the supervision of CLA personnel. Furthermore, upon request, we may
provide copies of selected audit documentation to the aforementioned parties. These parties may intend, or
decide, to distribute the copies or information contained therein to others, including other governmental
agencies.
The audit documentation for this engagement will be retained for a minimum of seven years after the report
release date or for any additional period requested by the State of Connecticut. If we are aware that a federal
awarding agency, pass-through entity, or auditee is contesting an audit finding, we will contact the party(ies)
contesting the audit finding for guidance prior to destroying the audit documentation.
CLA will not disclose any confidential, proprietary, or privileged information of the entity to any persons without
the authorization of entity management or unless required by law. This confidentiality provision does not
prohibit us from disclosing your information to one or more of our affiliated companies in order to provide
services that you have requested from us or from any such affiliated company. Any such affiliated company shall
be subject to the same restrictions on the use and disclosure of your information as apply to us.
Our engagement ends on delivery of our signed report. Any additional services that might be requested will be a
separate, new engagement. The terms and conditions of that new engagement will be governed by a new,
specific engagement letter for that service.
Government Auditing Standards require that we make our most recent external peer review report publicly
available. The report is posted on our website at www.CLAconnect.com/Aboutus/.
Mediation
Any disagreement, controversy, or claim (“Dispute”) that may arise out of any aspect of our services or
relationship with you, including this engagement, shall be submitted to non-binding mediation by written notice
(“Mediation Notice”) to the other party. In mediation, we will work with you to resolve any differences
voluntarily with the aid of an impartial mediator.
The mediation will be conducted as specified by the mediator and agreed upon by the parties. The parties agree
to discuss their differences in good faith and to attempt, with the assistance of the mediator, to reach an
amicable resolution of the Dispute.
Each party will bear its own costs in the mediation. The fees and expenses of the mediator will be shared equally
by the parties.
Any Dispute will be governed by the laws of the state of Minnesota, without giving effect to choice of law
principles.
Time limitation
The nature of our services makes it difficult, with the passage of time, to gather and present evidence that fully
and fairly establishes the facts underlying any Dispute that may arise between the parties. The parties agree
that, notwithstanding any statute or law of limitations that might otherwise apply to a Dispute, including one
arising out of this agreement or the services performed under this agreement, for breach of contract or fiduciary
duty, tort, fraud, misrepresentation or any other cause of action or remedy, any action or legal proceeding by

May 5, 2622
you against us must be commenced within twenty-four (24) months (“Limitation Period”) after the date when
we deliver our final audit report under this agreement to you, regardless of whether we do other services for
you relating to the audit report, or you shall be forever barred from commencing a lawsuit or obtaining any legal
or equitable relief or recovery.
The Limitation Period applies and begins to run even if you have not suffered any damage or loss, or have not
become aware of the existence or possible existence of a Dispute.
Fees
Our fixed fee for these services is $60,500. Our fee includes expenses (including travel, other costs such as
report production, word processing, postage, etc., and internal and administrative charges) plus a technology
and client support fee of five percent (5%) of all professional fees billed. This fee is based on anticipated
cooperation from your personnel and their assistance with preparing confirmations and requested schedules. If
the requested items are not available on the dates required or are not accurate, the fees and expenses will likely
be higher. If unexpected circumstances require significant additional time, we will advise you before undertaking
work that would require a substantial increase in the fee and expense estimates. Our invoices will be rendered
each month as work progresses and are payable on presentation. In accordance with our firm policies, work may
be suspended if your account becomes 60 days or more overdue and will not be resumed until your account is
paid in full. If we elect to terminate our services for nonpayment, our engagement will be deemed to have been
completed even if we have not issued our reports. You will be obligated to compensate us for all time expended
and related fees and to reimburse us for all out-of-pocket expenditures through the date of termination.
Additional work resulting from unanticipated changes in your organization or accounting records
If your organization undergoes significant changes in key personnel, accounting systems, and/or internal control,
we are required to update our audit documentation and audit plan. The following are examples of situations
that will require additional audit work:
e Revising documentation of your internal control for changes resulting from your implementation
of new information systems
e Deterioration in the quality of the entity’s accounting records during the current-year
engagement in comparison to the prior-year engagement
e Significant new accounting issues
e New or unusual transactions
e Changes in audit scope or requirements resulting from changes in your activities
e Erroneous or incomplete accounting records
e Evidence of material weaknesses or significant deficiencies in internal control
e Regulatory examination matters

May 5, 2022
e Implementation or adoption of new or existing accounting, reporting, or regulatory
requirements
e New financial statement disclosures
Changes in engagement timing and assistance by your personnel
The fee estimate is based on anticipated cooperation from your personnel and their assistance with
timely preparation of confirmations and requested schedules. If the requested items are not available
on the dates required or are not accurate, we will advise management. Additional time and costs may
be necessary because of such unanticipated delays. Examples of situations that may cause our
estimated fee to increase include:
e Significant delays in responding to our requests for information such as reconciling variances or
providing requested supporting documentation (e.g., invoices, contracts, and other documents)
e = Rescheduling our fieldwork
e Identifying a significant number of proposed audit adjustments
e Schedules prepared by your personnel that do not reconcile to the general ledger
e Numerous revisions to information and schedules provided by your personnel
e Restating financial statements for accounting errors in the prior year
e Lack of availability of entity personnel during audit fieldwork
Changes in accounting and audit standards
Standard setters and regulators continue to evaluate and modify standards. Such changes may result in new or
revised financial reporting and disclosure requirements or expand the nature, timing, and scope of the activities
we are required to perform. To the extent that the amount of time required to provide the services described in
this letter increases due to such changes, our fee may need to be adjusted. We will discuss such circumstances
with you prior to performing the additional work.
Changes related to COVID-19
COVID-19 continues to have significant direct and indirect impacts on financial reporting, disclosure
requirements, and the nature, timing, and scope of the activities we are required to perform. To the extent that
the amount of time required to provide the services described in this letter increases due to such changes, our
fee may need to be adjusted. We will discuss such circumstances with you prior to performing the additional
work,
Other fees
You also agree to compensate us for any time and expenses, including time and expenses of legal counsel, we
may incur in responding to discovery requests or participating as a witness or otherwise in any legal, regulatory,
or other proceedings that we are asked to respond to on your behalf.

v5, 2021
wr of Waterford, Connecticut
Page 13
Finance charges and collection expenses
You agree that if any statement is not paid within 30 days from its billing date, the unpaid balance shall accrue
interest at the monthly rate of one and one-quarter percent (1.25%), which is an annual percentage rate of 15%.
In the event that any collection action is required to collect unpaid balances due us, reasonable attorney fees
and expenses shall be recoverable.
Subcontractors
CLA may, at times, use subcontractors to perform services under this agreement, and they may have access to
your information and records. Any such subcontractors will be subject to the same restrictions on the use of
such information and records as apply to CLA under this agreement.

May 5, 2024
Town of Waterford, Connecticut
Agreement
We appreciate the opportunity to be of service to you and believe this letter accurately summarizes the
significant terms of our engagement. This letter constitutes the entire agreement regarding these services and
supersedes ail prior agreements (whether oral or written), understandings, negotiations, and discussions
between you and CLA. If you have any questions, please let us know. Please sign, date, and return the copy of
this letter to us to indicate your acknowledgment and understanding of, and agreement with, the arrangements
for our audit of your financial statements including the terms of our engagement and the parties’ respective
responsibilities.
Sincerely,
CliftonLarsonAllen LLP
" “at tae Wa hes
vA
Vanessa E. Rossitto, CPA
Principal
860-561-6824
Vanessa.rossitto@CLAconnect.com
Enclosure
Response:
This letter correctly sets forth the understanding of the Town of Waterford, Connecticut.
Authorized governance signature:
Title:
Date:
Authorized management signature:
Title:
Date:

Report on the Firm’s System of Quality Control
November 21, 2019
To the Principals of CliftonLarsonAllen LLP
and the National Peer Review Committee
We have reviewed the system of quality control for the accounting and auditing practice of CliftonLarsonAllen LLP
(the firm) applicable to engagements not subject to PCAOB permanent inspection in effect for the year ended May
31, 2019. Our peer review was conducted in accordance with the Standards for Performing and Reporting on Peer
Reviews established by the Peer Review Board of the American Institute of Certified Public Accountants
(Standards).
A summary of the nature, objectives, scope, limitations of, and the procedures performed in a System Review as
described in the Standards may be found at www.aicpa.org/prsummary. The summary also includes an
explanation of how engagements identified as not performed or reported in conformity with applicable professional
standards, if any, are evaluated by a peer reviewer to determine a peer review rating.
Firm’s Responsibility
The firm is responsible for designing a system of quality control and complying with it to provide the firm with
reasonable assurance of performing and reporting in conformity with applicable professional standards in all
material respects. The firm is also responsible for evaluating actions to promptly remediate engagements deemed
as not performed or reported in conformity with professional standards, when appropriate, and for remediating
weaknesses in its system of quality control, if any.
Peer Reviewer’s Responsibility
Our responsibility is to express an opinion on the design of the system of quality control and the firm’s compliance
therewith based on our review.
Required Selections and Considerations
Engagements selected for review included engagements performed under Government Auditing Standards,
including compliance audits under the Single Audit Act; audits of employee benefit plans; audits performed under
FDICIA; audits of broker-dealers; and examinations of service organizations [SOC 1 and SOC 2 engagements].
As a part of our peer review, we considered reviews by regulatory entities as communicated by the firm, if
applicable, in determining the nature and extent of our procedures.
Opinion
In our opinion, the system of quality control for the accounting and auditing practice of CliftonLarsonAllen LLP
applicable to engagements not subject to PCAOB permanent inspection in effect for the year ended May 31, 2019,
has been suitably designed and complied with to provide the firm with reasonable assurance of performing and
reporting in conformity with applicable professional standards in all material respects. Firms can receive a rating of
pass, pass with deficiency(ies) or fail. CliftonLarsonAllen LLP has received a peer review rating of pass.
Chew/ bebesr LU?
Cherry Bekaert LLP

FIFTEEN ROPE FERR