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. 94-S-35