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A Microsoft Word version of this letter is available for download
and PRINTING. |
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September 15, 2010
TO THE ADMINISTRATOR ADDRESSED: Subject: Depository Contract for Funds of Open-Enrollment Charter Schools beginning November 1, 2010 The Texas Administrative Code (TAC), Section 100.1043(b) states that “State funds received by a charter holder must be deposited into a bank with which the charter holder has entered into a depository contract.” In addition, according to TAC, Section 100.101, the charter holder must file with the Texas Education Agency (TEA), Division of Financial Audits a depository contract by November 1st of each year. However, if there have been no changes to the current accepted depository contract on file with the Agency, then the charter holder may file a statement to this effect in lieu of the depository contract. If the school is making changes to the current direct deposit account information on file with the Texas Education Agency Accounting Division, then a Vendor Direct Deposit Authorization form must be submitted along with the depository contract. The charter holder must allow the Agency sufficient time to review the direct deposit form since this form must be approved by the Agency’s Legal Division and the Charter School Division before the Accounting Division can process. The charter holder must complete and submit one (1) original Depository Contract for Funds of Open-Enrollment Charter Schools and one (1) original Vendor Direct Deposit Authorization form or a signed statement indicating no change to the current accepted contract on file by November 1, 2010 to the following address: Texas Education Agency In order to process these documents in an expeditious manner and ensure funding is received by the school on a timely basis, the charter holders are encouraged to review the instructions and also carefully review the documents for accuracy and completeness prior to submission (e.g. 30 days prior to the November 1st due date). Please note that any depository contract or direct deposit forms received by this Agency will not be accepted if the form is incomplete or incorrect. The charter holder may download the depository contract forms and information, as well as the Vendor Direct Deposit Authorization form and specific instructions for charter schools at the TEA website under Financial Audits / Depository Contracts: http://www.tea.state.tx.us/index4.aspx?id=2147484119 The Texas Administrative Code, Section 100.1043(a)(1) states that “State funds received by a charter holder are public funds for all purposes under state law, and may be used only for a purpose for which a school district may use local funds under Texas Education Code (TEC), §45.105(c).” [The school may also refer to Texas Education Code, Section 12.107(a)(1)] Also note that the Texas Government Code, Section 2257.021 states that, “A deposit of public funds shall be secured by eligible security to the extent and in the manner required by this chapter.” Should you have any questions or if you require further assistance, please contact me or Fred Tracy in the Division of Financial Audits at (512) 463-9095. Sincerely, Dana Flores  |
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