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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 could have increased by approximately $31,300 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. Appendix B includes our comment on an issue that was raised in the Town’s response letter.