FILE:  DO

 

LOANS TO SCHOOLS

 

 

The Washington Parish School Board shall require that any school contemplating entering into a bank loan, installment obligations, lease agreements or any other financing agreement have approval of the Superintendent or designee before entering into any such obligation.  Any school wishing to obtain permission for any indebtedness shall submit a Request for School Loan form in accordance with the following procedures:

 

  1. No loans shall be allowed to schools for capital projects against future allocations to schools.  The allocation to schools is for the operation and maintenance of the school.  When the allocation is used to pay back loans for capital projects, this may result in the school not having enough money to operate and maintain the school. 

  2. No loans shall be allowed to a school or school organization for capital projects against the future sale of property.  All property is owned by Washington Parish School Board and not by individual schools.

  3. No loans shall be allowed to a school for capital projects against the promised donation of a benefactor. 

  4. No loans shall be allowed to a school for capital projects against the future earnings of a booster club, athletic team, or other school organization.

  5. Loans for less than $10,000 may be made to a school from the School Board’s general fund against future allocations, if that loan is for maintenance equipment, such as mowers and tractors, or items needed by an organization that would not be classified as capital projects, such as weight equipment or musical instruments.  No school may have more than $10,000 in loans in aggregate at any one time. 

 

This policy does not stop schools or their organizations from engaging in capital projects.  This policy only prohibits schools or their organizations from borrowing money for those capital projects. 

 

This policy does not refer to grants that may be obtained for capital projects, in which the funds must first be expended by the School Board and then reimbursed by the grantor. 

 

New policy:  June 12, 2014

 

 

Ref:    La. Rev. Stat. Ann. §§17:158.6, 33:2923, 33:4712.7, 39:1410.60

Board minutes, 6-12-14

 

Washington Parish School Board