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Audit Objective

Determine whether Groton Central School District (District) officials maximized interest earnings.

Key Findings

District officials did not maximize interest earnings. During the audit period, the District’s interest earnings totaled $72,555, but the District could have earned another $367,963 if officials invested available funds in a financial institution that offered higher interest rates.

• The Business Official did not:
  • Develop and manage a comprehensive investment program or comply with the District’s Board of Education’s (Board) investment policy.
  • Solicit interest rate quotes to maximize interest earnings or prepare monthly cash flow forecasts.

Key Recommendations

• Prepare monthly cash flow forecasts that estimate available funds for investment.
• Ensure available funds are invested, within legal limits, to maximize interest earnings.

District officials generally agreed with our findings and recommendations and indicated they plan to initiate corrective action. Appendix B includes our comments on issues raised in the District’s response letter.