State Education Department
Oversight of School Districts' Cash Management and Investment Programs
Most school districts in New York maintain cash balances of $1
million or more during the year. We examined the Department's
oversight of the districts' cash management practices. We found
that this oversight could be more effective if the Department
had more information about cash management activities at the districts.
We also examined cash management practices at selected districts.
We found that, in some instances, districts had not established
formal cash management policies, had not solicited competition
when obtaining banking services, and left more cash than necessary
in low-yield time and demand deposit accounts. While the districts
had made a number of improvements in their cash management practices,
with further improvements they could earn several millions of
dollars in additional investment income annually.