Village of Castile – Water Billing for Letchworth State Park (2021M-1)

Issued Date

May 28, 2021

Audit Objective

Determine whether Village of Castile (Village) officials accurately billed New York State Parks, Recreation, and Historic Preservation (State Parks) for water usage for Letchworth State Park (the Park).

Key Findings

Village officials did not accurately bill State Parks for water usage. Village officials:

Were using incorrect water usage overage rates since June 2017. As a result, they overbilled State Parks by $7,577.
Charged $12,000 in late fees that were not authorized by the contract or contract amendment.

Key Recommendations

Ensure the water usage overage rates charged to State Parks follow the contract and contract amendment.
Stop charging late fees that are not authorized by the contract or contract amendment.

Village officials generally disagreed with our findings and recommendations. Appendix B includes our comments on issues raised in the Village’s response letter.

Background

The Village is located in the Town of Castile in Wyoming County. The Village is governed by an elected Board of Trustees (Board) composed of a Village Mayor and four trustees.

The Board is responsible for general oversight of operations and finances. The Board-appointed Village Clerk-Treasurer (Clerk-Treasurer) is responsible for billing and collecting water charges and the Board-appointed Superintendent of the Department of Public Works (Superintendent) is responsible for providing accurate meter readings to the Clerk-Treasurer, among his other duties.

The Village entered into a contract with State Parks to supply potable water to the Park in March 2011. This contract was amended in October 2011. Water service to the Park began in March 2014 and billing in April 2014.

Quick Facts
Village Population	1,100
Fiscal Year 2019-20 Water Revenue	$421,000
Amount Billed to State Parks During Audit Period	$1 million

Audit Period

March 1, 2014 – October 5, 2020