Audit Objective 

Determine whether Hammondsport Central School District (District) officials developed and managed a comprehensive investment program. 

Key Findings 

The Board of Education (Board) and District officials did not develop and manage a comprehensive investment program. From July 1, 2022 through February 29, 2024, the District earned $321,316 from its 37 interest bearing bank accounts and 27 certificates of deposits (CDs). Had officials considered alternative legally permissible investment options, the District may have earned $738,137, or $416,821 more than earned. 

District officials did not: 

• Create, and the Board did not adopt, a comprehensive investment program with written procedures for the investment of District funds. 
• Prepare monthly cash flow forecasts to estimate funds available for investment. 
• Formally solicit interest rate quotes. 
• Annually review and re-adopt the investment policy as required by New York State General Municipal Law (GML) Section 39. 

Key Recommendations 

The audit report includes four recommendations to help improve the District’s investment program. 

Except as noted in Appendix A, District officials generally agreed with our recommendations. Appendix B includes our comments on the District’s response.