[read complete report – pdf] 

Audit Objective

Determine whether Village of Greene (Village) officials developed and managed a comprehensive investment program.

Key Findings

Village officials developed a comprehensive investment program but did not effectively manage the program. During the 22-month audit period, the Village earned approximately $5,800 from money on deposit in the Village’s checking and savings accounts, which had an average daily balance of approximately $3.7 million. Had officials considered other legally permissible investment options, the Village may have earned approximately $96,900, or $91,100 more than earned. Officials did not:

• Prepare monthly cash flow forecasts to estimate funds available for investment.
• Monitor investments.
• Formally solicit interest rate quotes.
• Consider other legally permissible investment options.
• Develop investment procedures to convey management’s expectations for managing the Village’s investment program.
• Annually review the Village’s investment policy, as required by New York State General Municipal Law (GML) Section 39.

Key Recommendations

• Develop written investment program procedures and annually review the investment policy  
• Consider all four objectives of a comprehensive investment program - legality, safety, liquidity and yield - when investing available funds.

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