State audit flags delayed deposits in Cato town clerk’s handling of $5.8 million in collections

A New York State Comptroller audit found that Cato’s former town clerk did not deposit and remit all collections within the deadlines required by New York Town Law. The review covered collections handled from January 1, 2023, through February 12, 2026, totaling approximately $5.8 million.

The Comptroller issued the audit July 10, 2026. It identified a weakness in the handling of public money, but also said the collections reviewed were generally recorded and reported accurately and in a timely manner.

What the audit reviewed

The examination focused on the Cato town clerk/tax collector’s collection activity during the three-year review period. The report’s finding concerns the timing of deposits and remittances: The former clerk did not send all collections to the appropriate recipients within statutory timeframes.

The approved audit information does not state how much each delayed deposit involved or how long individual deposits were delayed. It also does not establish whether the former clerk remains employed. The finding is about untimely deposits and remittances, not a reported criminal finding or a determination that taxpayers lost money.

For residents and taxpayers, the audit provides a public record for evaluating how the town safeguards and accounts for collections. It also puts attention on the town’s financial controls, oversight and transparency around money collected on the public’s behalf.

Town response and next steps

The Town of Cato’s official webpage links to the Comptroller’s final audit and to a Town Board corrective-action plan. Those documents identify the town’s published response and the steps it says are intended to address the audit findings.

The town’s page also lists a July 22, 2026, workshop concerning health-insurance eligibility for elected officials and employees. That workshop is separate from the audit finding, but it shows that Town Board activity is continuing after the report’s release.

Cato is a town in Cayuga County that encompasses the Village of Cato and the Village of Meridian. The Comptroller’s audit and the town’s corrective-action materials are the key public documents for following whether the identified deposit and remittance problems are addressed. The approved materials do not establish that all corrective actions have been completed.