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