A new report from the New York State Comptroller’s Office claims there are flaws with the Cato Town Supervisor’s record-keeping.
The comptroller’s office said it conducted an audit from January 1, 2022, to November 6, 2025, to determine whether or not the Town of Cato Supervisor maintained “complete, accurate, and up-to-date accounting records and reports.” The office added that such records are necessary to ensure officials are able to effectively monitor a town’s financial health, make sound financial decisions, and ensure compliance with various laws.
The supervisor is responsible for receiving, distributing, and retaining custody of the town’s money, the office said, adding the town’s budgeted appropriations totaled $2.27 million in 2025.
According to a report recently released by the comptroller’s office, “the supervisor did not maintain complete, accurate, and up-to-date accounting records and reports.” Because of this, the office said the town board lacked reliable reports and records and was at an increased risk of theft, waste, and abuse of town resources.
The audit alleges the supervisor assigned his record-keeping duties to an appointed bookkeeper without adequate oversight, resulting in errors in the town’s accounting records. The errors and deficiencies allegedly included $348,817 in receipts and $744,572 in dispersments that were not included in accounting records.
Additionally, the bookkeeper is accused of preparing inadequate bank reconcilliations that identified unreconciled differences that were left uninvestigated.
“We confirmed that these variances were most likely due to unrecorded transfers between bank accounts and nine handwritten checks totaling $7,403 that were not recorded,” the comptroller’s office stated.
As a result of inaccurate payroll records, the office claims that one town employee was overpaid $2,600.
The report also alleges that the supervisor did not file the town’s AFR as required by state law. It noted that the bookkeeper filed the 2017 report in August 2022, more than four years late.
As of November 6, 2025, the office added that the 2018 through 2024 AFRs remained unfiled.
In addition, the Supervisor did not file the Town’s AFR, as required by New York State (NYS) General Municipal Law (GML) Section 30, since 2017.1 While the bookkeeper filed the 2017 AFR in August 2022, it was filed more than four years late. However, as of November 6, 2025, the 2018 through 2024 AFRs remained unfiled.
In its report, the comptroller’s office listed ten recommendations to improve the town supervisor’s records and reports, adding that town officials agreed with the recommendations.
The town board is expected to send a Corrective Action Plan to the comptroller’s office within 90 days, as required by state law.
