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1 DELAYED LAST STATE AID - BORROWING PROCESS

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Presentation on theme: "1 DELAYED LAST STATE AID - BORROWING PROCESS"— Presentation transcript:

1 1 DELAYED LAST STATE AID - BORROWING PROCESS

2 2 ITEMS POSTED ON WEB Application and Cash Flow Worksheet Summary of Borrowing Process Q&A Sample Promissory Note 4/15/14 Memo

3 3 DUE DATES–If Borrowing June 9 May 27 – Applications due to ECS June 4 – ECS Approval June 12 – Promissory Note to Finance July 8 or 9 – Payment to District, for repayment to bank

4 4 DUE DATES–If Borrowing June 23 June 10 – Applications due to ECS June 18 – ECS Approval June 26 – Promissory Note to Finance July 8 or 9 – Payment to district, for repayment to bank

5 5 APPLICATION Includes: Application Form Cash Flow Worksheet Supporting Documentation Written Bank Proposal – required submission for interest cost reimbursements

6 6 APPLICATION–cont’d Term of note: Loan effective date between June 9 and June 30 Loan effective date between June 23 and June 30 is recommended if loan amount is less than June 23 state aid payment – for portion attributable to June 23 payment. Loan maturity date will be July 8 or July 9.

7 7 APPLICATION–cont’d Interest Rate: The Executive County Superintendents (ECS) should review the interest rates on loan applications received and notify districts if the interest rate obtained by their bank does not appear reasonable in comparison to other banks in the area.

8 8 CASH FLOW WORKSHEET Line 1 - April 30 bank balances bank reconciliations as support Line 13 - Add estimated revenues for months May-June Line 19 - Deduct estimated expenditures for months May-June A/P register and vendor listing as support Line 20 - Maximum potential needed to borrow

9 9 CASH FLOW WORKSHEET– cont’d Lines represent federal programs in the district. This section is used to assess if the district has federal funds available for draw- down that may improve cash position. Line 24 (Line 22 less Line 23) represents the difference between federal program expenditures made and the federal reimbursements received. Explanation of receivable required Districts should draw funds on a timely basis

10 10 Used to analyze general fund and Preschool Districts must include Preschool costs in the application (See Q&A #16) CASH FLOW WORKSHEET– cont’d

11 11 COUNTY APPROVAL FORM County Approval Form will be ed to the county offices The maximum allowable approved principal should be the lesser of Line 20 on the Cash Flow Worksheet or the amount of the June state aid payments.

12 COUNTY SUBMISSION TO DOE County Approval District Application Cash Flow Worksheet Bank Letter Confirming Interest Rate Signed Promissory Note 12


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