Council approves $543,553 in ARPA reallocations after debate over $200,000 audit contract

The Danbury City Council on Oct. 1 approved a resolution reallocating $543,553.21 in American Rescue Plan Act (ARPA) funds, a package that drew questions about a $200,000 line item for financial-management and audit support.

Dan Garrick, the city’s director of finance, told the council the $200,000 is intended to cover consulting work by CLA to complete delayed audits for fiscal years 2023 and 2024. Garrick said the city has reduced audit lag from a year-and-a-half to months and that CLA helped accelerate the ’22 audit; the additional funds are to continue that engagement into the current audit cycle.

“This is for the city and board of education,” Garrick said, adding that staffing shortages at the schools prompted the need for consultant support and that the consulting engagement has already improved turnaround times.

Councilman Fox pressed Garrick for more detail on why outside help was needed and whether the city’s regular auditors could perform the work. Fox also raised process questions about a September board-of-awards meeting that recommended contracting actions his office could not find labeled as contingent upon council approval.

Garrick replied that much of the consultant payment covered the ’23 audit and was independent of the current reallocation, and that any awards contingent on council approval would not proceed without the council’s action. He also said recent state ARPA funds — a separate $12 million grant for schools referenced in council discussion — are distinct from the local ARPA reallocation before the council.

Council members asked for clearer reporting on open bonds and ARPA balances. Councilman Fox and others said a regular schedule showing how much has been spent on bond projects and what remains would reduce confusion when projects such as a high-school pavilion appear in the press.

After discussion, Councilman Tomczyk moved to authorize the mayor or his designee to execute all actions necessary to effectuate the reallocations documented in exhibit 1-A-N; the motion carried on a voice vote.

What it means: The approved package preserves funding for audit completion work the finance director says is necessary to bring the city’s audits current and reallocates other ARPA monies. Council members left on record a request for clearer line-item detail and for routine reporting on open bond and ARPA project balances.

Next steps: The mayor’s office and finance department will execute the authorized actions; council members requested an ARPA and bond reporting template to be circulated in the coming days.