Determine whether Village officials maximized interest earnings.
- The Board did not develop and manage a comprehensive investment program to ensure interest earnings were maximized.
- Had officials invested available funds in a financial institution with higher available interest rates, interest earnings could have been increased by approximately $42,200 during the audit period.
- Periodically solicit interest rate quotes from multiple financial institutions.
- Prepare monthly cash flow forecasts that estimate available funds for investment.
- Ensure available funds are invested within legal limits, to maximize interest earnings.
Village officials generally agreed with our recommendations and have initiated, or indicated they planned to initiate corrective action.