Audit Objective 

Determine whether Piseco Common School District (District) officials invested in accordance with statutory requirements.

Key Findings 

District officials did not invest in accordance with statutory requirements. As a result, District investments were at an increased risk of loss. 

• District officials did not adhere to the District’s investment policy and invested $35,000 in an investment account that is not statutorily authorized.
• The Board of Education (Board) readopted its investment policy annually, but did not ensure the District’s investments were in compliance with the policy’s list of eligible investments. 
• The Board did not develop procedures to address investment requirements.

Key Recommendations 

• Consult with the District’s attorney and consider market conditions to place unauthorized investments in authorized accounts. Consider all four objectives of a comprehensive investment program - legality, safety, liquidity and yield - when investing available funds. 
• Review the investment policy annually and amend the policy as needed. 
• Ensure future investments are made in accordance with statutory requirements and the District’s investment policy. 

District officials generally agreed with our recommendations and have initiated, or indicated they planned to initiate corrective action.