Audit Objective
Determine whether Pembroke Central School District (District) officials developed and managed a comprehensive investment program.
Key Findings
District officials did not develop and manage a comprehensive investment program. From January 1, 2022 through April 30, 2023, the District earned investment earnings totaling over $153,000 from money on deposit in its 15 bank accounts at two financial institutions, which had an average of $13.4 million available for investing. Had officials considered other legally permissible investment options, the District may have earned approximately $390,000, or $237,000 more than earned. District officials did not:
- Create, and the Board did not adopt, a comprehensive investment program with written procedures for the investment of District funds.
- Prepare monthly cash flow forecasts to estimate funds available for investment.
- Monitor investments.
- Formally solicit interest rate quotes.
- Consider other legally permissible investment options prior to our audit commencing.
- Annually review and re-adopt the investment policy as required by New York State General Municipal Law (GML) Section 39.
Key Recommendations
- Develop and manage a comprehensive investment program with written investment program procedures.
- Consider all four objectives of a comprehensive investment program - legality, safety, liquidity and yield - when investing available funds.
District officials agreed with our recommendations and indicated that they have initiated or plan to initiate corrective action.