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Audit finds mismanagement in Village of Cato’s water financial operations

A recent audit of the Village of Cato’s water financial operations, issued on March 22 revealed significant mismanagement by the village board and officials.

The audit, covering the period from June 2021 to July 2023, identified issues such as $42,696 in unauthorized billing adjustments and calculation errors in 71 of 464 water bills, leading to nearly $8,000 in discrepancies.


Additionally, 27% of the water produced, costing about $20,000, was categorized as lost or unauthorized non-revenue water.

The report criticized the village for not having adequate reserves or long-term financial and capital plans for water needs until prompted by the Cayuga County Health Department.

Key recommendations from the audit include establishing written policies for billing and collections, ensuring water adjustments are approved, and reviewing water rates and reserve balances for future needs.

Village officials have acknowledged the findings and promised to take corrective action to address these shortcomings.