Town of Marlborough - Water and Sewer Financial Operations (2018M-160)

Issued Date
October 26, 2018

[read complete report - pdf]

Audit Objective

Determine whether Town officials properly billed, collected and accounted for water and sewer bills.

Key Findings

  • As of December 31, 2017, the water fund owed the general fund $340,000.
  • The Budget Officer made billing adjustments in 2017 totaling $228,146 without Board approval.
  • The water and sewer funds do not pay administrative costs for services they receive from the general fund.
  • Customers were overcharged for water and sewer late penalties in 2017 by $8,654.

Key Recommendations

  • Prepare an annual cost analysis to calculate the water and sewer rates to be billed.
  • Review and repay all outstanding interfund advances.
  • Ensure late penalties are properly computed on overdue customer accounts.

Town officials generally agreed with our recommendations and indicated they planned to initiate corrective action.