Issued Date
August 28, 2020
Audit Objective
To determine whether District officials maximized interest earnings.
Key Findings
District officials did not follow their investment policy. As a result, officials did not maximize interest earnings for the District.
- Officials did not develop and manage a comprehensive investment program.
- Officials did not seek competitive interest rates.
- Officials earned interest totaling $246,431 during the audit period. However, they could have earned an additional $614,606 if they used other available investment options.
Key Recommendations
- Develop and manage a comprehensive investment program.
- Prepare monthly cash flow forecasts to estimate available funds for investment.
- Solicit interest rate quotes and obtain investment information to ensure available funds are invested, within legal limits, to maximize interest earnings.
District officials generally agreed with our recommendations and indicated they planned to initiate corrective action.