DGR - LRSD Board Policy

Published by jackbgarvey on Wed, 07/10/2013 - 10:19

LITTLE ROCK SCHOOL DISTRICT - NEPN CODE:  DG-R

 

BANKING SERVICES

 

A.        Bank Depository Selection

The following points will be considered in recommendations made to the Board for the selection of banks as the depository for school district funds:

·         Safeguarding of funds requires that the bank possess:

-         ability to secure collateral in the appropriate amounts to legally cover investments and bank deposits; and

-         a capitalization position sufficient to guarantee the ability to provide necessary banking services.

         

Operational procedures that are efficient and effective can best be achieved by the school district if it can:

-         maintain the fewest accounts possible;

-            maintain the smallest amount of cash balance;

-            minimize audit checks;

-            minimize bookkeeping transactions; and

-            minimize the risk of error.  

 

Economy of operation will be achieved with having one depository bank:

-         to require the least number of checks, forms, etc.;

-         to demand the services of the least number of school clerical personnel; and

-         to allow for the smallest amount of "float," or minimum cash balance.

 

·         Special services of high importance to the school district include:

 

-         the provision for “checkless” transactions;

-         the ability to handle large sum investments; and

-         an adequate inventory of investments.

 

 

 

Date:  March 24, 2000

Legal Reference:  A.C.A.  6-20-222