Audit Objective
Did the Village of Medina (Village) Village Clerk-Treasurer (Clerk-Treasurer) ensure water and sewer user rents and fees (charges) were accurately billed, collected and deposited?
Audit Period
April 1, 2023 – May 13, 2025
Understanding the Audit Area
A village clerk-treasurer should ensure water and sewer user rents and fees are accurately billed, collected and deposited because these revenues are often the primary source of funding for operating, maintaining and improving a village’s water and sewer system. Accurate billing and collection practices help ensure all users are charged fairly and consistently, revenues are sufficient to support system operations, and taxpayers are not forced to subsidize unpaid or uncollected charges.
Proper collection and timely deposits also strengthen accountability and transparency over public funds by reducing the risk of errors, lost revenues and misuse of funds or undetected irregularities. In addition, maintaining complete and accurate records allows village officials to effectively identify delinquent accounts, support long-term infrastructure planning and make informed financial decisions. Effective oversight of water and sewer revenues also helps ensure compliance with village policies, local laws and applicable regulations which can promote public confidence in the village’s financial management.
During the Village’s 2023-24 fiscal year, June 1, 2023, through May 31, 2024, the Clerk-Treasurer’s office billed 2,387 water and sewer user accounts (user accounts) for services and collected $2.96 million in related user charges.
Audit Summary
Although we determined $296,8671 of water and sewer collections were deposited timely and intact,2 the Clerk-Treasurer did not ensure water and sewer user charges were billed accurately or that delinquent accounts were managed in accordance with Village Code and Board-adopted policies.3 In addition, the Clerk-Treasurer did not establish clear written procedures for collecting and depositing user charges, properly segregating duties or providing adequate oversight of billing and collection activities. As a result, the inconsistent application of Board-adopted policies created inequities among water and sewer users and there was a significant increased risk that billings could be inaccurate and collections could be misappropriated.
We reviewed billing and collections for 75 water and sewer accounts totaling $296,555 for the second quarter of fiscal year 2023-24 and identified deficiencies related to setting up accounts, monitoring meter usage, billing corrections and enforcing delinquent accounts. The Clerk-Treasurer did not ensure user account parameters were accurately entered into the billing system, which caused inaccurate usage information to populate the metering and billing system. For example, one account reflected usage of 3,307,508 cubic feet when the actual reading should have been 33,075 cubic feet. In addition, officials did not adequately monitor accounts with consistently low usage that could indicate malfunctioning meters. When one faulty meter was eventually replaced, billable charges increased by approximately $16 month, or $48 per quarter. Over the four years the meter was in service, Village may have collected approximately $768 in additional user charges.
The report includes 16 recommendations that, if implemented, will strengthen oversight, improve the accuracy of billing and collections, enhance accountability and ensure delinquent accounts are enforced consistently and in accordance with the Board-adopted policy. Village officials agreed with our findings and recommendations and indicated they have initiated corrective action.
We conducted this audit pursuant to Article V, Section 1 of the State Constitution and the State Comptroller’s authority as set forth in Article 3 of the New York State General Municipal Law. Our methodology and standards are included in Appendix C.
The Board has the responsibility to initiate corrective action. A written corrective action plan (CAP) that addresses the findings and recommendations in this report should be prepared and provided to our office within 90 days, pursuant to Section 35 of the New York State General Municipal Law. For more information on preparing and filing your CAP, please refer to our brochure, Responding to an OSC Audit Report, which you received with the draft audit report. We encourage the Board to make the CAP available for public review in the Clerk-Treasurer’s office.
1 Includes $296,555 in user charges, $162 in penalties and $150 in shut-off fees.
2 In the same form as they were received, such as cash or check.
3 Village officials refer to the reconnect fee as the “shut-off fee.” Therefore, for purposes of this report, we will use “shut-off fee.”