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Audit Objective

Determine whether Village officials maximized interest earnings.

Key Findings

• 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.

Key Recommendations

• 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.