Audit Objective

Determine whether Onondaga Cortland Madison Board of Cooperative Educational Services (BOCES) officials maximized interest earnings.

Key Findings

BOCES officials did not maximize interest earnings. As a result, over an 18-month period, officials missed an opportunity for BOCES to realize additional interest earnings totaling $310,865.

The Assistant Superintendent for Administration (Assistant Superintendent) and BOCES officials did not:

• Develop and manage a comprehensive investment program or develop procedures for the operation of the investment program in compliance with the Board of Education’s (Board’s) investment policy.
• Invest available funds throughout the audit period in an authorized cooperative municipal investment fund (Investment Fund) that offered higher interest rates.
• Prepare monthly cash flow forecasts or ensure interest rate quotes were solicited to maximize interest earnings.

Key Recommendations

• Develop written investment program procedures.
• Prepare monthly cash flow forecasts and ensure available funds are invested in legally permissible investments to maximize interest earnings.

BOCES officials generally agreed with our findings and recommendations and indicated they plan to initiate corrective action.