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NYS Comptroller


Taxpayers' Guide to State and Local Audits

Audits of Local Governments and School Districts

Village of Waverly – Revolving Loan Programs (2011M-265)

Released: March 30, 2012 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was to examine the Village's revolving loan programs for the period June 1, 2009, through July 13, 2011.


The Village of Waverly is located in the Town of Barton in Tioga County. The Village is governed by a Board of Trustees which comprises six elected members and an elected Village Mayor. There were 24 loans with outstanding principal balances totaling $334,711, as of June 30, 2011.

Key Findings

  • Village officials' lending, monitoring, and collection procedures, as well as their internal controls over disbursing loan moneys, were inadequate.
  • Pursuant to article 18 of the General Municipal Law, there appears to be a conflict of interest with a former Board member whose business received a $40,000 loan. As of June 1, 2011, the business was 24 months delinquent in repaying this loan.

Key Recommendations

  • Develop and implement comprehensive lending procedures and establish collection enforcement and monitoring procedures to help ensure that all money lent is repaid in accordance with the loan agreements.
  • Ensure that late payment penalties are enforced on all delinquent loan accounts.

Local Government and School Accountability Contact Information:

Phone: (518) 474-4037; Email:
Address: Office of the State Comptroller, Division of Local Government and School Accountability
110 State Street, 12th Floor; Albany, NY 12236