Determine whether District officials maximized interest earnings.
District officials did not develop and manage a comprehensive investment program. As a result, officials did not maximize interest earnings for the District.
- Officials did not formally solicit interest rate quotes or prepare cash flow forecasts to estimate the amount of funds available for investment.
- Officials earned interest totaling $40,652 during the audit period. However, they could have earned about $159,100 more had officials used other available investment options.
- Periodically solicit interest rate quotes from multiple financial institutions.
- Ensure available funds are invested within legal limits, to maximize interest earnings.
- Prepare cash flow forecasts that estimate funds available each month for investment.
District officials generally agreed with our recommendations and have initiated, or indicated they planned to initiate corrective action.