Audit Objective

Determine whether Marathon Joint Fire District (District) officials developed and managed a comprehensive investment program.

Key Findings

District officials did not develop and manage a comprehensive investment program.

• The Board of Fire Commissioners (Board) did not develop and adopt a comprehensive written investment policy as required by New York State General Municipal Law Section 39 until the end of our audit period.
• The District earned interest totaling approximately $2,000 from the District’s checking and savings accounts, which had an average daily balance of approximately $567,000 during the audit period. However, the District could have earned approximately $14,600, or $12,600 more had officials used other available investment options.
• Officials did not consider other legally permissible investment options or formally solicit interest rate quotes that may have resulted in higher interest earnings.

As a result of our audit, the Board subsequently approved an investment policy in March 2023 and invested $653,000 into an investment fund with higher interest rates.

Key Recommendation

• Periodically solicit interest rates and obtain investment information to ensure available funds are invested to maximize interest earnings.

District officials agreed with our findings and indicated they plan to initiate corrective action.