Audit Objective 

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

Key Findings 

Village officials did not develop and manage a comprehensive investment program. During the 12-month audit period, the Village earned $1,516 from money on deposit in the Village’s two checking accounts, which had an average monthly available balance of $4.8 million. Had officials considered other legally permissible investment options, the Village may have earned an additional $148,755 in interest earnings. Village officials did not: 

• Solicit interest rate quotes or prepare monthly cash flow forecasts. 
• Consider other legally authorized investment options when investing available funds. 

Key Recommendations 

• Develop and manage a comprehensive investment program that considers all four objectives of a comprehensive investment program - legality, safety, liquidity and yield. 
• Prepare monthly cash flow forecasts to estimate available funds for investment, monitor investments and periodically solicit interest rate quotes. 

Village officials generally agreed with our recommendations and have initiated, or indicated they planned to initiate corrective action.