City auditor gives unmodified opinion; board debates school health care and special-education overruns

The Shelton Board of Aldermen heard an annual audit presentation on Feb. 25 from auditor Dave Capuleti, who said the city's financial statements received an unmodified opinion and that the city
nded the year with roughly $1.4 million in net revenues over expenditures and an increase in unassigned fund balance of about $4,000,000.

Capuleti said the audit found no reportable internal-control deficiencies. "We gave an unmodified opinion, and we don't have any findings or internal controls to talk about tonight," he told the board.

Board members focused questions on the Board of Education's budget shortfalls. Capuleti identified two principal overexpenditure areas: health-care costs and special-education spending. When a member pointed to a line showing an overspend of about $3,000,005 under education, Capuleti confirmed that figure represented the overspent appropriation on that line.

Mayor John Angliss said the city's health-care overages largely reflect the variability of a self-insured program and that local leaders did not control some of those cost drivers. He also criticized how federal special-education funds have been handled, saying, "For 13 years, [the formula] hasn't changed ... they spent it in other ways on special education. That is a crime." Chair (speaker 4) disagreed with framing the Board of Education as intentionally overspending.

Capuleti concluded the review by noting improved fiscal health: a rebuilt fund balance (about $4.4 million), modest debt per capita and a growing capital and grant list that bolstered the city's position with lenders.

The discussion produced no formal audit finding or corrective-action motion; the board proceeded to other agenda items after the auditor's presentation.