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Response #1:The AG has stated that a “lease purchase agreement” is not a true lease, but a purchase. Therefore, the District may enter into lease purchase agreements as long as the provisions of the Public Bid law are followed. See, AG Op. No. 00-0433. The lease purchase agreement must contain a non-appropriation clause and not contain an anti-substitution clause, otherwise Bond Commission approval is required.
Response #2: The fact that the non-public fund account is “set up” at the bank under the District’s Tax Id number does not make the funds subject to audit. As long as the two funds are kept separate through proper accounting procedures and public funds are not co-mingled with the non-public funds, then the non-public account will not be subject to audit. However, if even a minimal amount of public funds are co-mingled with the non-public funds, then the non-public fund account would become subject to audit.
Louisiana Legislative Auditor website: 05/14/2025 09:22:15 PM
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