A local board is authorized and empowered to accept and expend on behalf of and for the benefit of any child placed by it where legal custody remains with the parents or guardians, committed or entrusted to its care under §§ 63.2-900 and 63.2-903, when no guardian has been appointed, funds or money paid or tendered as pension, compensation, insurance or other benefit from the U.S. Department of Veterans Affairs or under the Railroad Retirement Act or the old age and survivors’ insurance provisions of the Social Security Act, as amended, or funds contributed or paid by parents or other persons for the support of such child, and the local board may, from any such funds received, provide for the current or future maintenance of such child. Whenever any child is discharged by the local board all such funds held by the local board shall be paid to the child’s guardian if such funds exceed $1,000 upon such guardian posting bond as may be required by law, or disbursed in accordance with § 8.01-606, if the sum does not exceed $1,000.