21. Banking Arrangements including Bank Overdrafts, Other Borrowing and Leasing

Last updated: Tue, Sep 20th, 2016 6:54:08 pm

21.1          Boards of Management are requested to review their banking arrangements to ensure that cash balances which are surplus to immediate requirements are invested in a suitable interest earning account with their bank or other institution to generate income for the school.

21.2          The payment of bank charges should be queried and arrangements made to avoid such charges where possible.

21.3          In order to ensure that the most efficient and practical arrangements are put in place, Boards are requested to seek tenders from at least three banking institutions for the provision of banking services. Boards will select the tender which aims to maximise the net benefit to the board i.e. maximise investment income over bank charges. Such arrangements should be kept under periodic review.

21.4          Where cash flow difficulties arise the Board of Management should review its spending plans as a matter of urgency with a view to ensuring that the School does not go into an overdrawn position with its bank. Where the difficulties relate to the tranching of monies from the Department the matter should be raised with Schools Division Financial Section as soon as possible. 

21.5          The Board of Management must not incur overdrafts or other borrowing (including lease purchase, hire purchase or other similar arrangements) except with the prior written approval of the Department. Interest on such borrowing should not be charged to the school fund except where the borrowing has been approved by the Department.

Monies must not be borrowed or leasing arrangements entered into, by the Board of Management in order to fund a third party. See Circular 004/2012 in this regard

21.6          All proposals for lease, rental of equipment and rental/lease of additional facilities or accommodation must be submitted to the Department for advance approval.

21.7          No legal agreement should be entered in relation to the rental or leasing of school property before the legal instrument has been examined and sanctioned by the Department’s Planning & Building Unit