A Parents and Citizens’ Association at a Queensland Government school may borrow funds for the provision of resources or services for the benefit of students at the association’s school.
Parents and Citizens’ Associations (P&C) are classified as statutory bodies. Under the Statutory Bodies Financial Arrangements Act 1982, a statutory body may obtain loans with the Treasurer’s approval.
Finance Branch of the Department of Education and Training (DET) will undertake an assessment of the information provided by the P&C to determine whether the loan is recommended for approval. The assessment focuses on the following factors in making a recommendation:
- Whether the P&C has the necessary upfront cash contribution for the project/s; and/or,
- Whether the amount of borrowings sought can be repaid by the P&C.
The purpose for which the borrowings have been requested is not assessed by Finance Branch, but project/s to be funded by the P&C through borrowings should provide resources or services for the benefits of students at the school.
To qualify for a loan, a contribution from the P&C of at least half of the total project cost is generally required.
Loan applications are subject to a rigorous financial assessment by the department and the lender is to be the Queensland Treasury Corporation (QTC), unless the Treasurer approves a loan from another institution. In exceptional cases the Assistant Director-General and Chief Finance Officer has authority to reduce the required amount of contribution on request.