Broadalbin-Perth Central School District – Cash Management (2020M-65)

Issued Date
October 09, 2020

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Audit Objective

Determine whether District officials maximized interest earnings.

Key Findings

District officials did not develop and manage a comprehensive investment program. As a result, officials did not maximize interest earnings for the District.

  • Officials did not formally solicit interest rate quotes or prepare cash flow forecasts to estimate the amount of funds available for investment.
  • Officials earned interest totaling $40,652 during the audit period. However, they could have earned about $159,100 more had officials used other available investment options.

Key Recommendations

  • Periodically solicit interest rate quotes from multiple financial institutions.
  • Ensure available funds are invested within legal limits, to maximize interest earnings.
  • Prepare cash flow forecasts that estimate funds available each month for investment.

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