[read complete report – pdf] | [read complete 2023 report – pdf] 

Purpose of Review

The purpose of our review was to assess the Village of Cato’s (Village’s) progress, as of June 10, 2025, in implementing our recommendations in the audit report Village of Cato – Water Financial Operations (2023M-145), released in March 2024. 

The audit determined that the Village Board (Board) and 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. As a result, bills were inaccurate and collections were not always deposited in accordance with Village law, and the Village didn’t have adequate reserves to finance system repairs and upgrades planned at an approximate cost of $853,000. The audit included 11 recommendations to help Village officials effectively manage the financial operations of the water fund, establish adequate reserves and develop long-term financial and capital plans.

Background

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.