A recent state audit has revealed that Village of Penn Yan officials failed to properly manage overtime costs at the village’s Water Treatment Plant (WTP), resulting in hundreds of thousands of dollars in avoidable spending.
The audit, released by the Office of the New York State Comptroller in July, found that from June 2021 through November 2024, the WTP incurred $338,108 in overtime wages — nearly one-third of the total wages paid to its operators. In total, overtime accounted for more than 11,500 hours and $532,065 over a broader review period dating back to 2017.
Auditors found that overtime was not formally approved in advance, as required by the village’s employee handbook. Additionally, the Chief Water Operator did not submit required annual work schedules for approval. Instead, scheduling was handled informally through weekly meetings without consistent tracking of planned or completed overtime work.
The audit found the Chief Water Operator responsible for 63% of non-weekend overtime costs during the review period, totaling $89,667. Despite explanations citing seasonal demand and facility upgrades, auditors determined that those factors had minimal impact on actual water pumping hours and did not justify the spike in overtime.
The most significant cost driver was a change made in 2018 classifying all weekend work as overtime — a policy shift not supported by the collective bargaining agreement and not clearly explained by current officials. Weekend overtime alone accounted for 62% of all overtime hours and 60% of the related costs.
Efforts to reduce overtime, including hiring an additional operator in 2021, were unsuccessful because work schedules remained unchanged. In-house improvement projects also added to the burden, yet the Chief Water Operator did not conduct cost-benefit analyses or maintain records to justify the use of internal labor over contracted vendors.
Auditors concluded that the lack of start and end times on timesheets further limited the village’s ability to monitor work hours or control costs, ultimately passing unnecessary expenses onto local water customers.
The report offers six recommendations, including requiring documented schedule and overtime approvals, better use of cost analysis for project planning, and improved timekeeping practices. Village officials agreed with the findings and indicated that corrective actions are underway.
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