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NYS Comptroller

THOMAS P. DiNAPOLI

Taxpayers' Guide to State and Local Audits

Audits of Local Governments and School Districts

Village of Williamsville – Financial Condition of the Water and Sewer Funds (2011M-286)


Released: May 4, 2012 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was to review the financial condition of the water and sewer funds for the period June 1, 2006, through November 1, 2011.

Background

The Village of Williamsville is located in Erie County. The Village is governed by a five-member elected Board of Trustees comprising the Mayor and four Trustees. For the 2011-12 fiscal year, budgeted appropriations totaled approximately $3.2 million in the general fund, $.9 million in the water fund and $1.1 million in the sewer fund.

Key Findings

  • The water and sewer funds have experienced a steady decline in fund balance levels over the last several years which has placed both funds in an unstable financial position. At the close of the 2010-11 fiscal year, the sewer fund had unexpended surplus funds of $24,691 and the water fund had a deficit fund balance of $121,425. Since January 2007, the Village has increased water rates five times and sewer rates twice. However, these increases have not consistently generated sufficient revenue to support operations. Both funds have incurred operating deficits over the last five years.
  • In order to provide adequate cash flow, the water fund has relied on interfund loans of over $300,000, which it currently cannot repay.

Key Recommendations

  • Develop a plan to eliminate the fund balance deficit in the water fund and improve the financial condition of both the water and sewer funds within a reasonable time period.
  • Review all outstanding interfund advances in the water fund and take action to repay them as soon as possible. Ensure that all interfund advances are approved by the Board before being made.

Local Government and School Accountability Contact Information:

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