[read complete report – pdf]

Audit Objective 

To determine whether Greenville Fire District (District) officials managed a comprehensive investment program. 

Key Findings 

District officials developed a comprehensive investment program but did not effectively manage the program. During the 17-month audit period, the District earned $539 from money on deposit in the District’s checking and money market accounts, which had average available funds for investing of $845,365. Had officials considered other legally permissible investment options, the District may have earned an additional $38,700 more than earned. Officials did not: 

• Develop investment procedures to convey management’s expectations for managing the District’s investment program, 
• Solicit interest rate quotes, or 
• Consider other legally permissible investment options. 

Key Recommendations 

• Develop written procedures for the investment program’s operation consistent with the District’s investment policy guidelines. 
• Consider all four objectives of a comprehensive investment program - legality, safety, liquidity and yield - when investing available funds. 

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