A state audit has found that Penn Yan officials failed to properly approve or monitor overtime spending at the village’s water treatment plant, leading to unnecessary expenses for local ratepayers.
According to a report from the Office of the New York State Comptroller, water plant employees earned more than $530,000 in overtime between June 2017 and November 2024 — including nearly $321,000 paid for weekend shifts alone. In several years, overtime costs accounted for as much as 32 percent of total wages.
Auditors said the overtime was not formally approved by village supervisors, as required by the employee handbook. In many cases, the Chief Water Operator modified work schedules or took on in-house projects without documentation or cost-benefit analysis.
“The water customers may have been unnecessarily burdened with unneeded overtime costs and higher pension costs associated with pensionable overtime earnings,” the audit stated.
The report also found:
- From June 2021 to November 2024, non-weekend overtime cost $142,778. The Chief Water Operator was responsible for 63 percent of that total.
- Officials did not maintain complete timesheets showing daily start and end times or reasons for overtime.
- A fourth operator was hired in 2021 to reduce overtime, but the schedule was never changed, and costs continued to rise.
Auditors recommended six corrective actions, including requiring prior approval for all overtime, conducting cost-benefit reviews for in-house work, and ensuring operators keep complete timesheets.
Village officials agreed with the findings and said they have begun implementing changes. The full audit is available through the Office of the State Comptroller.
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