State Education Department

Oversight of School Districts' Cash Management and Investment Programs (Follow-Up Review)

Most school districts in New York maintain cash balances of $1 million or more during the year. In our prior audit report 94-S-35, we examined the State Education Department's oversight of the districts' cash management practices and concluded that this oversight could be more effective if the Department had more information about cash management activities at the districts. We also identified opportunities for significant improvements in the investment programs of some of the districts we visited. In our follow-up review, we found that actions have been taken to implement some of the recommendations contained in our prior report. However, recommendations requiring Department staff to visit the districts have not been implemented, due to reductions in Department staff. We suggest that alternative actions be considered to address the weaknesses identified in our prior audit.

For a complete copy of Report 96-F-6 click here.
For a copy of the 90-day response click here.