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A Microsoft Word version of this letter is available for download
and PRINTING. |
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January 26, 2011 TO THE ADMINISTRATOR ADDRESSED: Subject: Depository Contract for Independent School Districts In accordance with Subchapter G, Chapter 45, Texas Education Code (TEC), each school district must select a depository or depositories to receive school funds during the 2011-2013 biennium. The board of trustees has the responsibility for making the selection and executing a new contract effective the first day of the new fiscal year, either July 1, 2011 or September 1, 2011. TEC §45.205(c) states that “the contract term and any extension must coincide with the school district’s fiscal year.” In accordance with TEC §45.206(a), a school district must select a depository through competitive bidding or through requests for proposals. A school district must mail to each bank located in the district and, if desired, to other banks, a notice stating the time and place in which bid applications or proposals will be received for selecting a depository or depositories [reference TEC §45.206(a-1) and (a-2)]. In addition, a school district’s notice, in utilizing either a competitive bid or requests for proposals, must include a uniform bid blank or proposal blank in the form prescribed by State Board of Education (SBOE) rule. However, as stated in TEC §45.206(b), “the school district may add to the uniform bid or proposal blank other terms that do not unfairly restrict competition between banks in or near the territory of the district.” The SBOE rule regarding uniform bid and proposal blanks can be accessed at http://ritter.tea.state.tx.us/rules/tac/chapter109/ch109d.html. The agency requires the district to submit three executed contract forms to the Division of Financial Audits along with one copy of the accepted bid or proposal filed by the selected depository, a copy of the Competitive Bid / RFP Data Sheet, and if applicable, a signed Texas Surety Bond form for Texas Education Agency (TEA) approval. The Vendor Direct Deposit Authorization form must also be completed and submitted to this office only if the district changes depository banks or changes the account information to which all funds are sent. However, if the district is eligible, and elects, to extend the current contract in accordance with TEC §45.205(b), only the executed Board Resolution Extending Depository Contract for Funds form should be submitted to this office. The Division of Financial Audits must receive the completed contracts or resolution to extend the current contract no later than June 15, 2011. If the contracts or the extension form are not received by that date, there is a possibility that a district’s July or September payment will be delayed, depending on the district’s fiscal year. The depository contract packets will not be mailed to the district. However, the district may download, complete, and print the on-line forms located at the following TEA website under Financial Audits / Depository Contracts: http://www.tea.state.tx.us/index4.aspx?id=2147484119. For additional information, the district may refer to the Depository Contracts Frequently Asked Questions or the Summary of Laws and Procedures Pertaining to Depository Contracts for Independent School Districts, which are also available at the above website. The district may also view the document labeled “School District Depository Contract Status for the 2011-2013 Biennium” to verify if the district qualifies for an extension of its contract for the current biennium. Please mail three (3) of the completed original contracts and any additional applicable forms or the one (1) original extension form to the: Division of Financial Audits When the contracts have been determined by the agency to meet all statutory requirements, two of the signed original depository contracts will be returned to the district (one signed original for the district’s records and one signed original for the bank’s records). The third original depository contract, with any additional applicable forms, will be retained on file at the Agency. Thank you for your cooperation. Any questions regarding this matter should be directed to Dana Flores, Division of Financial Audits, at (512) 463-9095. Sincerely, Rita Chase |
