[read complete report – pdf]

Audit Objective 

Determine whether the Town of Ballston (Town) officials provided adequate oversight of the water fund’s financial operations.

Key Findings 

Officials did not provide adequate oversight of water fund operations. As a result, delinquent accounts were not accurately relevied, and the Town lost revenue.

•  Officials did not maintain an inventory or list of meters purchased and issued to track costs and ensure rates were applied consistently, and meters were accounted for.
• The water clerk (clerk) inaccurately relevied all 25 accounts we reviewed because she included $3,784 that was not yet overdue.
• Officials did not reconcile water purchased or delivered with water used and could not account for water totaling $300,000.
• To meet minimum purchase requirements, the Town paid the Town of Glenville $135,000 for 38.5 million gallons of water it did not receive or use. Officials could have saved $90,000 of this cost by monitoring water flow.
• We reviewed 20 accounts that were adjusted by $586,014 and determined they were not reviewed, approved or supported.

Key Recommendations 

• Develop and distribute written policies and procedures for billing, collecting, enforcing and adjusting water charges.
• Review unpaid water charges and annual relevy lists.
• Reconcile water delivered and water used.

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