Lincoln County School District partners for ‘cash sweep’
The Lincoln County School District is partnering with First Bank to do an Insured Cash Sweep.
First Bank representatives Jeremy Winborne and Vickie Webb were at the board’s regular monthly meeting Monday to explain the cash sweep and what it would mean for the district.
District Financial Director Sam Stewart introduced the concept to board members before Winborne and Webb presented.
“Some of our accounts don’t have a lot of activity,” Stewart said. “They would loan them out to other institutions. Our money would be FDIC insured.”
Webb explained the inner workings of the insured cash sweep.
“By putting it in those accounts, you do have full FDIC coverage,” Webb said. “You’ll be able to see all your funds still and you can still use it.”
Webb said First Bank has been using this program for over a year and that it has worked well. Essentially, the money leaves the bank overnight and it comes back the next day.
“We found that schools with 16th section money are prime candidates for this program,” Webb said. “It’ll help us keep your deposits insured with very little effort on your part. There’s no difference in the interest.”
After presenting the program to Superintendent David Martin, Stewart called the Treasury office in Jackson to see if the district was able to do this.
“With your permission, they would start with one account,” Stewart said. “We would do it for a month.”
“I don’t see any real downside for you guys,” Webb said. “If you don’t want to continue with the program, you can stop.”
Stuart said the only negative aspect he sees is the possibility of more accounting work for the district. It wouldn’t cost the district anything to participate.
After hearing from Winborne and Webb, the board entered into a time of discussion. The proposal was approved by a majority of the school board, with the vote falling four to one.
“It’s still helping our children in the long run because this will help the community,” board member Dianne Gill said.
Story by Gracie Byrne
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