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NYS Comptroller

THOMAS P. DiNAPOLI

Audits of Local Governments and School Districts

Report Highlights

Village of Herkimer - Water and Sewer Financial Operations (2019M-102)

Released: August 16, 2019 -- [read complete report - pdf]

Audit Objective

Determine whether Village officials effectively managed the billing, collection and enforcement of water and sewer charges.

Key Findings

  • Key duties over water and sewer operations such as billing, collecting, entry of payments and adjustments were inadequately segregated and lacked effective oversight procedures.
  • Water and sewer receivable control accounts were not reconciled to unpaid customer account balances.
  • The Board did not review the water and sewer re-levy list and the list of unpaid customer accounts.

Key Recommendations

  • Adequately segregate duties or implement effective mitigating controls over water and sewer financial operations.
  • Reconcile the water and sewer receivable control account to unpaid customer balances on a monthly basis.
  • Review the water and sewer accounts re-levy list and compare it to the complete list of unpaid customer accounts prior to approval.

Village officials generally agreed with our findings and indicated they had already taken or planned to take corrective action.

Appendix B includes our comment on an issue raised in the Village’s response letter.

Background

The Village of Herkimer (Village) is located in the Town of Herkimer in Herkimer County and provides water and sewer services to its residents. The Village also provides water services to some customers that reside in the Town of Russia and to three water districts that serve portions of the Towns of Herkimer and German Flatts.

The Village’s elected Board of Trustees (Board) includes four Trustees and a Mayor. The Board is responsible for oversight and general management of the Village’s financial operations. The Mayor is the Village’s chief executive officer and is responsible for its day-to-day management. The Clerk-Treasurer is the chief fiscal officer, the custodian of all Village funds, and responsible for maintaining the Village’s accounting records and overseeing the water and sewer billing, collection and enforcement.

Quick Facts
2017-18 Water and Sewer Revenue (combined)$1.8 million
Water Customers2,740
Sewer Customers2,528

Audit Period

June 1, 2017 – October 17, 2018


Local Government and School Accountability Contact Information:

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