Issued Date
December 22, 2023
Audit Objective
Determine whether Hamilton Fulton Montgomery Board of Cooperative Educational Services (BOCES) officials developed and managed a comprehensive investment program.
Key Findings
BOCES officials did not develop and manage a comprehensive investment program. During the 12-month audit period, BOCES held $7.4 million in money market accounts and earned interest totaling $105,000, and held $4.6 million in non-interest bearing accounts. Had officials considered other available investment options, BOCES may have earned $448,000 in investment income, or $343,000 more than the $105,000 earned during our audit period. Officials did not:
- Adopt a comprehensive investment policy as required by General Municipal Law (GML) Section 39.
- Solicit interest rate quotes or invest available funds in financial institutions that offered a competitive yield.
- Prepare monthly cash flow forecasts to monitor and estimate funds available for investment.
Key Recommendations
- Adopt a comprehensive investment policy.
- Solicit interest rate quotes and ensure available funds are invested to benefit BOCES operations.
- Consider all four objectives of a comprehensive investment program – legality, safety, liquidity and yield – when investing available funds.
BOCES officials generally agreed with our recommendations and indicated they planned to initiate corrective action.