Town of Waterloo – Board Oversight (2017M-110)

Issued Date
December 01, 2017

Purpose of Audit

The purpose of our audit was to determine if the Board provided adequate oversight of the Town’s financial affairs for the period January 1, 2015 through November 3, 2016.


The Town of Waterloo is located in Seneca County and has a population of approximately 7,500. The Town is governed by an elected five-member Town Board. Budgeted appropriations for all Town funds were approximately $2.4 million for 2016.

Key Findings

  • The Board has not established adequate policies and procedures governing separation payments.
  • Separation payments totaling $50,128 were paid from an “Employee Benefit Reserve” in 2016, which was not appropriately established.
  • The Board did not establish policies and procedures governing the financial operations of the water and sewer districts.
  • The Board did not enter into intermunicipal agreements with the Village of Waterloo for water and sewer services provided to the Town.

Key Recommendations

  • Develop and adopt written procedures to govern separation payments.
  • Ensure that reserves are established according to statute and that only authorized payments are made from reserves.
  • Establish written policies and procedures over water and sewer financial operations.
  • Ensure written intermunicipal agreements are entered into with any municipality for which services are to be provided or shared.