What is a school corporations obligation of repayment?
School corporations have an obligation to repay cash advances received during the fiscal year, including interest cost and costs of issuance. Cash advances are considered short term and any general fund money not needed for operating costs must be repaid as soon as the school corporation has enough money on hand to eliminate the cash flow deficit. School corporations are required to repay cash advances as soon as state aid and property taxes are received. If the state aid or property tax revenue is received after February 1 for Series A Warrants or June 30 for Series B Warrants, it must be used immediately to repay outstanding cash advances. If cash advances are not paid by the required dates, interest will be added to the unpaid amounts. It is important to note that the cost of issuing the warrants and the warrant interest cost are treated as cash advances which must be repaid.
