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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.