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A school district must have a depository bank into which the ɬÀï·¬ Education Agency (TEA) can deposit funds for the district. The district creates a depository relationship with a bank by executing a depository contract with the bank.

Related ɬÀï·¬ Statutes and Rules

• Financial Accountability System Resource Guide,ÌýModule 1, Financial Accounting and ReportingÌý(PDF, 2,483 KB)
• ÌýÌý

Recent Changes

Changes to Depository Contract Rules, EffectiveÌýJune 4, 2019

, was amended by Senate Bill 1376. As a result, as of June 4, 2019, a school district is not required to submit to TEAÌýits:

• Depository Contract for Funds of ISDs,
• ɬÀï·¬ Surety Bond form, if applicable, or
• Board Resolution Extending theÌýDepository Contract for Funds of ISDs.

All remaining depository contract rules are still in effect. If a school district makes changes to its direct deposit account, the district still must electronically submit a Direct Deposit Authorization form to TEA.

Procedure for Depository Contract—School District

Each school district's depository contract must be renewed every two years. The next cycle is 2023-2025.ÌýThe district must choose to select a depository either by bid or by request for proposals. The school district should review the following documents before sending out forms for bids or requests for proposal to banks:

• Summary of Laws and Procedures Pertaining to Depository Contracts for Independent School Districts (PDF, 62 KB)
• Depository Contracts Frequently Asked Questions (PDF, 49 KB)

The forms for bids and requests for proposal are provided in the following links:

• Bid Form (PDF, 89 KB; Word, 128 KB)
• Request for Proposal Form (PDF, 78 KB; Word, 128 KB)
• Attachment A (PDF, 2,135KB; Excel, 252 KB)
• Attachment B (PDF, 22 KB; Word, 36 KB)
• Sample Bid Notice (PDF, 486 KB; Word, 54 KB)
• Sample Request for Proposal Notice (PDF, 487 KB); Word, 54 KB)
• Depository Contract Data Sheet for Independent School DistrictsÌý(PDF, 400 KB) (optional;Ìýfor school records only;Ìýdo not submit to TEA)

The depository contract form and surety bond form are provided in the following links:

• District Depository Contract for Funds of Independent School DistrictsÌý(PDF, 706 KB)
• ɬÀï·¬ÌýSchool Depository Surety Bond Form (PDF, 509 KB)Ìý(if applicable)

For links to the vendor Direct Deposit AuthorizationÌýform and instructions, see Account Information UpdateÌýbelow.

Electronic Submission of Depository Contract Files

If a school district makes changes to its direct deposit account, the district still must electronically submit a Direct Deposit Authorization form to TEAÌýusingÌýthe ɬÀï·¬Login (TEAL) AUDITÌýapplication.

Please review Depository Contracts Electronic Submission Process for instructions on submitting depository contract files to TEA.

Extension of Depository Contract

A school district may extend its depository contract forÌýthree (3)Ìýadditional two-year terms if:

• the district did not file an extension in theÌýthree previous bienniums and
• the district and the depository bank agree to extend the current depository contract with or without changes to the contractÌýif both the district and bank mutually agree to the existing and/or new terms.Ìý

To extend the term of its depository contract, the district and depository bank must execute the following form:

Board Resolution Extending Depository Contract for Funds of Independent School DistrictsÌý(PDF, 390 KB)

A list of ISDs that were eligible for a contract extension had been provided in previous years; however, due to changes toÌý, the information required to assemble the listing is no longer submitted to TEA.Ìý As a result, we are no longer able to generate a list of ISDs that are eligible for a contract extension.

Ìý

Account Information Update

If theÌýschool district is making changes to the direct deposit account, then the district must submit a vendor direct deposit authorization form:

• Direct Deposit Authorization form with instructions (PDF, 743 KB)

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