State audit: Cato officials mishandled water accounts, incorrectly billed customers

CATO, N.Y. — A small community in Cayuga County plagued by water issues for years has not taken many of the steps outlined by the New York State Comptroller to fix them, including reforms to make sure customers are billed the right amount.

An audit follow-up published by the State Comptroller’s office details the decisions made after an audit of the Village of Cato’s water systems was released in March 2024.

Of the 11 audit recommendations, the Board and Village officials partially implemented three recommendations and did not implement eight recommendations, according to the State Comptroller’s office.

Two of the recommendations not fully implemented revolve around ensuring that customers are billed the correct amount, including establishing written policies for billing and reviewing adjustments for customers’ accounts as needed. The State Comptroller’s office reviewed two accounts, finding one was underbilled by $168 and another was overbilled by a dollar.

Village leaders blamed incorrect bills and adjustments made to customers’ accounts on incorrect meter readings, broken meters and unauthorized adjustments.

“They [the Village} did not have documentation to support these adjustments or their assertions. Without adequate adjustment reports and supporting documentation the ability for the Board to provide managerial oversight is limited,” the report noted.

The Village Clerk stated that she will do a cursory review of water billings on a quarterly basis. If she notices anomalies in the bills, a Department of Public Works (DPW) Supervisor will reread the meters and then make an adjustment, according to the report.

The comptroller’s initial audit found the village board and public officials did not effectively manage the financial operations of the water fund, leading to inaccurate bills for customers and a lack of funds to finance needed repairs and upgrades at an estimated cost of $853,000.

The State Comptroller’s report says village leaders did not develop long term financial and capital plans until the Cayuga County Health Department forced the Board to submit a plan.

In August of 2024, CNY Central spoke with neighbors who were frustrated with the Village’s water systems. The mismanagement by village leaders wasn’t just a financial issue: it was a quality-of-life issue as well. Neighbors reported water main breaks multiple times per year, forcing frequent boil water advisories that disrupted everyday life.