Town of Moriah - Cash Management (2019M-169)

Issued Date
November 27, 2019

[read complete report - pdf]

Audit Objective

Determine whether Town officials maximized interest earnings.

Key Findings

  • The Board did not develop and manage a comprehensive investment program to ensure interest earnings were maximized.
  • Had the Supervisor invested available funds in a financial institution with higher available interest rates, revenue would have increased by $80,688 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 in a manner, within legal limits, to maximize interest earnings.

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