The New York State Comptroller’s office has released a report stating that Village of Cato’s officials are not following the corrective actions recommended in a 2024 audit report on its water financial operations.
In March 2024, the office released a report following an audit of the Cayuga County village’s water financial operations. In it, the office stated that village officials “did not effectively manage the financial operations of the water fund, establish adequate reserves, or develop long-term financial and capital plans until the Cayuga County Health Department forced the Board to submit a plan.” Because of this, the report claimed bills were inaccurate and funds were not always deposited in accordance with village law. Furthermore, the audit found that the village lacked adequate reserves for system repairs and upgrades planned to cost approximately $853,000.
The comptroller’s office provided 11 recommendations to the village on how it could effectively manage the financial operation of the water funds, establish proper reserves, and develop long-term financial and capital plans as part of the audit. The comptroller’s office revisited the village on June 10, 2025, and now claims that the village has partially implemented only three of the 11 recommendations.
According to the comptroller’s office, the village board has partially implemented plans to ensure billing registers are reviewed regularly for accuracy, develop a comprehensive written multiyear financial and capital plans that project operating and capital needs and financing sources for a minimum of a three to five-year period, and review water rates to ensure sufficient revenues are
generated to finance expenditures and pay for maintenance and infrastructure improvement costs. The office states that the remaining eight recommendations have not been acted upon, meaning the water fund’s financial operations are not being effectively managed.
The full report can be viewed here.
Have all the Finger Lakes news from Finger Lakes News Radio delivered to your email every morning for FREE! Sign up by clicking here
The Village is located in the Towns of Cato and Ira in Cayuga County. The Village is governed by the elected five-member Board, which includes the Mayor. The Board is responsible for the general management and control of the Village’s finances and operations.
The Board-appointed Clerk-Treasurer is the Village’s chief fiscal officer and is responsible for the custody and accounting of all Village money, as well as quarterly water billings, collections and enforcement of water charges. The Department of Public Works Superintendent oversees the water department and is responsible for day-to-day operations.
Results of Review
Of the 11 audit recommendations, the Board and Village officials partially implemented three recommendations and did not implement eight recommendations.
