Danbury Catches Up On Delayed Audits, Reports Strong Fund Balance

DANBURY, CT — The City of Danbury has completed its fiscal year 2024 audit, marking the third previously delayed audit finished during Mayor Roberto L. Alves’ first term and bringing the city’s financial reporting fully up to date.

The FY24 audit highlights an unassigned fund balance of 18.86 percent and general fund revenues that exceeded the amended budget by about $2.3 million. The Annual Comprehensive Financial Report also found an $8.8 million surplus from the 2023-24 Board of Education budget, a figure consistent with earlier projections, according to a news release from the Mayor's Office.

“With the needed resources, direction, and leadership, I am proud to announce that three audits have now been filed in less than two years,” Alves said in a statement. “Work has already begun on the 2025 audit to ensure Danbury does not land back under the watch of the State.”

When Alves took office in December 2023—halfway through the FY24 cycle—Danbury had just submitted a severely delayed FY21 audit and had yet to make progress on FY22. The backlog led to oversight by the Connecticut Municipal Finance Advisory Commission and prompted Moody’s Investors Service to withdraw the city’s credit rating.

During the recent audits, the city and school district finance teams identified a budgeting formula for employee health and dental benefits that created significant surpluses in multiple years. According to the report, this formula accounted for 80 percent of the school system’s FY24 surplus and has since been corrected in the FY25 budget.

“As we reviewed financial reports in FY23 and FY24, we immediately took on measures to improve financial operations,” said Superintendent Dr. Kara Casimiro. “By bringing in new expertise, adding internal controls, and strengthening our collaboration with City Hall, we’ve turned a new page.”

Alves praised the stronger partnership between the city and school district, adding that the collaborative approach has been key to recent financial improvements.

The FY24 Annual Comprehensive Financial Report has been submitted to the City Council’s Audit Committee for review later this month. State and federal single audits are expected to be completed before Dec. 1, 2025.