Publisher's summary
Because the Board did not adopt realistic budgets, the sewer fund incurred operating deficits and a decline in its overall financial health. The Board overestimated revenues by $379,000 in fiscal years 2014-15 through 2018-19, resulting in net operating deficits in the sewer fund totaling $144,000. The Board also did not annually review contractual revenues, resulting in potential unrealized revenue totaling approximately $295,000. Finally, the Board did not document a basis for, or adequately monitor, shared service costs, resulting in possible sewer fund inequities. However, with rate increases in effect and the adoption of more realistic revenue estimates in 2018-19 and 2019-20, there has been marked improvement.
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Report Highlights
Village of Gowanda
Audit Objective
Background
Determine whether the Board and Village officials
properly accounted for and effectively managed The Village (Village) of Gowanda is located
the financial operations of the sewer fund. in Erie and Cattaraugus Counties. The
Board of Trustees (Board) is responsible
Key Findings for the overall management and oversight
of the Village’s financial operations.
ll The Board overestimated revenues by The Mayor serves as the Village’s chief
$379,000 in fiscal years 2014-15 through executive and budget officer.
2018-19, resulting in net operating deficits in
the sewer fund totaling $144,000. The Village Treasurer (Treasurer) is the
chief financial officer and is responsible
ll The Board did not annually review contractual
for maintaining the Village’s accounting
revenues, resulting in potential unrealized
records. The Chief Operator is responsible
revenue totaling approximately $295,000.
for oversight of the day-to-day sewer
ll The Board did not document a basis for, or operations.
adequately monitor, shared service costs,
resulting in possible sewer fund inequities. The Village provides sewer services to
Village residents and a portion of the Town
of Perrysburg. The Village also contracts
Key Recommendations with the New York State Department of
ll Adopt budgets that include realistic revenue Corrections and Community Supervision
estimates. (DOCCS) for sewage disposal at the
Collins and Gowanda facilities and allows
ll Review rates and contractual revenues
bulk disposal from permitted entities.
annually and revise them, as needed,
to generate sufficient revenues to cover Quick Facts
expenditures.
Population 2,700
ll Develop an equitable basis for shared service
costs and adjust it, as needed, based on 2018-19 Sewer Fund
$744,064
Expenditures
actual expenditures.
2018-19 DOCCS
Village officials agreed with our recommendations Subsidy
$506,250
and indicated they planned to initiate corrective
action.
Audit Period
June 1, 2014 – September 12, 2019
Of f ic e of t he New York State Comptroller 1