STUDENT ACTIVITY FUNDS INTRODUCTION: Student activities are defined as school clubs, classes or other related activities which organize to raise money and/or promote a particular program, project or subject area. They offer many great opportunities for students using funds outside the general budget. The students in the organization are involved in the management of the organization s activities. Acting as agent, not as an administrator or manager, the district is responsible for maintaining records and properly accounting for the activity funds. The school board has fiduciary responsibility to establish and enforce policies and procedures to safeguard activity fund assets consistent with other assets of the school district. The decentralized nature of activity accounts requires strong fiscal controls on the funds. These controls include clearly defined lines of authority and areas of responsibility, as well as policies and procedures to guide the operation of activity funds. This document is designed to provide standardized accounting procedures and fiscal controls for the administration of student activity funds in the Dodgeville School District. Adherence to these guidelines and procedures is expected from all district staff and students involved in the management of these funds. The student activity records should be up-to-date at all times and are subject to audit at any time. The Business Official, or her/his designee, reserves the right to mandate that all funds be remitted to the Business Office and all transactions then flow through the Business Office. These guidelines and procedures reflect existing State statutes, regulations, and guidelines; Board policies; administrative procedures; and generally accepted accounting practices. They are intended to protect the building administrators, the respective staff members who are responsible for maintaining student activity fund financial records, the students and the district. The Business Official shall have responsibility and authority to implement all policies and rules pertaining to the supervision and administration of student activity funds in schools in accordance with established policies and rules of the School Board. The Business Official is also responsible for prescribing appropriate accounting procedures. The principal of the school, as trustee, shall be directly responsible for the conduct of student financial activities in accordance with the policies, rules and procedures set forth by the state, the school district and the Business Official. This policy establishes financial controls for the administration of the normal, legitimate, co-curricular and extra-curricular activities of the student body organization. Each activity covered by this policy must be recognized by the Board of Education before monies can be collected or disbursed in the name of the said activity. The District Administrator is directed to obtain a list and brief description of the objectives, activities, and limitations of each fund prior to the start of said fund.
The Board will review the list upon submission to determine if the objective of each fund serves a continuing District need. All activities shall be on a self-sustaining basis. STUDENT ACTIVITY FUNDS VS. DISTRICT ACTIVITY FUNDS: STUDENT ACTIVITY FUNDS (Fund 60): Student activity funds consist of activities that revolve around student organizations. Disbursement of an organization s monies is subject to the approval of the student organization officers and its supervisor/advisor. Student activity accounts warrant board officers to manage the funds. If it is not a student organization, it should not be classified as a student activity fund. Examples of student activities include: Student Council; Yearbook Club; National Honor Society and Class of 2XXX. Co-curricular activities such as band/orchestra, musical and plays are funded by Fund 10 the General Fund. As such, all proceeds from ticket sales, etc. will be deposited in Fund 10. Examples of district activities include: Athletics, Band, Drama, Show Choir, Uniforms and Field Trips. GENERAL PRINCIPLES: 1. Purpose: The purpose of student activity funds is to account for those activities and functions relating to student organizations. Fundraising projects shall contribute to the educational experiences of students and shall add to, not conflict with, the instructional program. a. Student activity money shall be expended in such a way as to benefit those students currently in school who have contributed to the accumulation of such money. 2. Management: The management of student activity funds shall be in accordance with sound business practices, including sound budgetary and accounting procedures and thorough audits. a. Student participation is an important factor in the democratic management of money raised by the student body and expended for its benefit. Students should make the decisions of the use of the money, with the advisor providing guidance. An authorized representative of the appropriate activity organization (the chair or treasurer, for example), the faculty advisor, and the building principal should all approve each expenditure. 3. Responsibility: The principal is charged with the overall responsibility for all activity funds. All funds collected and disbursed through a school and its organizations are to be accounted for by the principal or his/her designee. 4. Competition to local merchants: Student body business shall be conducted in such a manner as to offer minimum competition to local merchants. 5. Obligations: No student body organization shall be obligated for purchases made by students, faculty, and others unless supported by documentation made in accordance with these procedures. 2
6. Benefits for Staff from Student Activity Funds: a. Student activity funds shall not be used for any purpose that represents a benefit, loan, or credit to school district employees or persons other than pupils. b. School district employees or others may not make purchases through a student body in order to take advantage of student body purchasing privilege or credit capacity. c. The payment of salaries or stipends to school district employees from student activity funds is strictly prohibited. d. Expenditures from student activity funds for professional books and/or magazines, as well as personal memberships in professional organizations for the advisor are prohibited. 7. Gifts: Monies from bequests, scholarships and endowments are not to be retained in the school activity fund. Those dollars are maintained in district Fund 21. 8. Audits: Student activity records and financial procedures are subject to periodic internal audits by the business office and to outside audits by independent auditors. Organization of an Activity Fund Student activity funds are formed at the time a school activity, organization club or class is formed under the sponsorship of an advisor that is a school employee, and after approval by the school board. It is the responsibility of the building principal to notify the districts' bookkeeper of changes in the advisorship of any school activity, organization, club or class. It is the responsibility of the advisor to continually oversee the operation of the fund, and the advisor is to involve students in the management of the organization s activities and the recordkeeping process as a learning activity. Each year, the advisor is to submit to the building principal and administrative assistant a list of student officers and/or others who will be working with the fund. Raising of Funds Fund raising for all students will be in accordance with Board policies. Each school shall submit a biennial balance sheet to the district office. All fund raising activities that are initiated by the students and their advisor must be approved by the building principal. Those that involve the community must also be taken to the administrator by the principal before the fund raising activity is begun. All funds received shall be under the financial control of the school board and shall be deposited in a building school district activity account after being received. Interest earned on the buildings activity account by law is paid to the district treasury in the name of the building. The interest will then be credited to the individual activity, organization, club or class, or to an activity interest account, by the district Business Official or designee. 3
Collection and Deposit of Cash All money collected from any source must be substantiated by prenumbered student body receipts, prenumbered auxiliary receipts, prenumbered class receipt records, or other auditable and checkable records. Money should be deposited daily if possible, and money not deposited should be kept in a safe overnight. Money should not be kept in an employee s room. Disbursement of Activity Funds Funds received shall only be used for purpose related to the educational growth of the organization, club or class members, or for a purpose beneficial to the school community. Funds shall not be used for the daily operations of the building, as those costs are part of the annual budget. Disbursement of activity funds shall be made only after approval by the faculty advisor and the principal. All disbursements must be supported by proper documents - purchase orders, vouchers, and invoices. Signatures of both the principal and the activity advisor shall appear on each check written. Audit of Funds Complete records relating to activity funds will be audited by the districts' bookkeeper by the end of each fiscal year. The Audit will take place in the location specified by the district s auditing firm. Other periodic internal audits will be made as seems necessary. An audit of all funds will be made by a certified auditor at the end of the school year. This audit will be conducted as part of the total school district audit. Dissolving of Funds At the end of a school year, all balances of funds will be carried over to the next school year except that for the class that is graduating. The graduating class, or the class officers, after covering the expenses and activities of that class shall designate before the end of the school year how any remaining balance will be spent. Any funds which remain in a graduating class treasury at the end of a school year of graduation will automatically become part of a designated building activity account as determined by the principal. Any fund no longer active will be phased out by the recommendation of the principal. Every effort should be made to make sure an account does not have a negative balance. All monies accumulated in the account of a specific class or activity will, upon the discontinuance of the activity, be disposed of in accordance with the recommendation of said group and approved by the Principal and District Administrator. 4
STUDENT RESPONSIBILITIES The purpose of student activity accounts is to provide an opportunity for students to participate democratically in the financial administration of their organizations. Students should decide how revenues are to be raised and what expenditures those dollars will go toward. Budget Activity Account Statement of Purpose and Budget: This form must be completed by June 1 st of each school year. This form explains the primary objective of the group, planned activities of the group and a proposed budget for the group. Updates to this form will be accepted through September 30 th. No expenditures will be allowed after September 30 th without this form being completed and approved by the building principal. See Appendix A. Student Activity Account Year-end Summary: This form must be completed by June 1 st of each school year. The purpose is to provide a summary of the activities of the group over the past school year. See Appendix E. Receipts/Deposits Clearance of Money Collected from Pupils: Student clubs and other organizations acting under the name of the school are required to deposit their funds intact in the student activity fund. All money collected by the groups shall be deposited into the student activity fund through the office of the building principal. Receipts: Personal Checks: o Postdated checks will not be accepted. o Personal checks may not be cashed for anyone. o Personal checks must be made out for the exact amount due the school. Cash: o Cash payments must be receipted in duplicate with one copy retained for reconciliation purposes. Ticket Sales: o Only pre-numbered tickets should be used when ticket sales are made. o Ticket reconciliation Forms (Appendix B) to record ticket sales should be submitted with any unused tickets and the collections from the sales. o The advisor and a student officer should perform the ticket reconciliation together, and both should sign the reconciliation form prior to turning in the form and the funds collected. Deposits All coins should be counted, but need not be placed in coin wrappers. All currency should be neatly bound with face side up. All checks must be staple free and stamped upon receipt with a For Deposit Only bank stamp. A completed Activity Account Deposit Envelope (see Appendix C) should accompany each deposit turned in to the designated building activity account administrative assistant. o This form should be completed by an authorized student (chair, treasurer, etc.), and should be signed by an authorized student and advisor. 5
o The form must indicate the amount of money being deposited, which must be validated by the authorized student and advisor. o When submitted to the school office, the amount should be verified by the designated activity account manager and a three-part, pre-numbered receipt form be completed, with one part being issued to the organization s representative. o One receipt must be issued to the organization s representative for the monies received from a group collection; however, the organization must have a detailed record of the group collection. All money must be deposited within board policy guidelines. No money may be dispersed from undeposited funds. Expenditures Purchasing/Disbursements: Purchase Order/Check Requests: Purchase orders (PO) should be used to make purchases. In the event that a vendor does not require a PO in advance of the purchase, the same form can be used to request a check to pay a vendor invoice. Purchase Order/Check Request Forms (Appendix D) shall be completed by a student representative and approved by the advisor as well as the building principal. Receipts from purchases made using a PO should immediately be turned into the school office to be matched with the bill for the purchase when received. A copy of the receipt is acceptable for this purpose. No payment will be made without proper documentation to support the PO or check request. Year-End Audits: Student activity records and financial procedures are subject to internal audits by the Business Office and to outside audits by independent auditors. Fiscal Year End: At the end of the fiscal year, activity groups will carry over all balances to the next fiscal year for the continued use of each group. It should not the intent of student activities to accumulate significant sums for future needs. Money raised in a specific academic year should be spent in that same year if practicable. This ensures that the students raising the money receive benefits from their efforts. Exceptions are made for those groups that plan for bi-annual travel experiences. ADVISOR RESPONSIBILITIES The faculty advisor of each student organization is responsible for supervising all activities of the organization. As such, the advisors approve all transactions of the student activity account. Advisors are expected to be familiar with all the information listed in the Student Responsibilities section above. Advisors should be an employee of the district and are responsible to the school principal. Budget Ensure that the Activity Account Statement of Purpose and Budget is completed, submitted to, and approved by, the building principal by September 30 th of each school year. See Appendix A. 6
Ensure that the Activity Account Year End Summary with supporting documentation is completed, submitted to, and approved by the building principal by June 1 st of each school year. See Appendix E. Fundraising Activities The faculty advisor is in charge of fundraising projects and is responsible to the principal for preparing and maintaining sales and financial records. Receipts/Deposits Clearance of Money Collected from Pupils: Student clubs and other organizations acting under the name of the school are required to deposit their funds intact in the student activity fund. All money collected by the groups shall be deposited into the student activity fund through the office of the building principal. Receipts: Ticket Sales: Using a Ticket Reconciliation Form (Appendix B), the advisor and a student officer should perform the ticket reconciliation when tickets are used. Deposits: All coins should be counted, but need not be placed in coin wrappers. All currency should be neatly bounds with face side up. All checks must be staple free and stamped upon receipt with a For Deposit Only bank stamp. A completed Activity Account Deposit Envelope (Appendix C) should accompany each deposit turned in to the designated building activity accounts manager. o This form should be completed by an authorized student (chair, treasurer, etc.) and validated by the faculty advisor. o When submitted to the school office, a pre-numbered receipt will be issued to the organizations representative. o The organization must have a detailed record of group collections. The faculty advisor is responsible for ensuring that all records are complete and accurate. Monies may not be placed in the faculty advisor s personal bank account, nor kept in the advisor s work area, for safekeeping until remitted to the school office. The advisor is responsible for all money collected until it is delivered to the school office and a receipt is provided. IF monies cannot be turned in to the school office at the conclusion of the event, other arrangements must be made with the building principal. All money must be deposited per board policy guidelines. No money can be dispersed from undeposited funds. Expenditures Purchasing/Disbursements: Purchase Order/Check Requests: Purchase orders (PO) should be used to make purchases. In the event that a vendor does not require a PO in advance of the purchase, the same form can be used to request a check to pay a vendor invoice. Purchase Order/Check Request Forms (Appendix D) shall be completed by a student representative and approved by the advisor as well as the building principal. Receipts from purchases made using a PO should immediately be turned into the school office to be matched with the bill for the purchase when received. A copy of the receipt is acceptable for this purpose. 7
No payment will be made without proper documentation to support the PO or check request. Reimbursement for Cash Purchases: In some cases money might be spent personally by a student or faculty member with the prior permission of the faculty advisor. This practice is strongly discouraged, but it is recognized as necessary on rare occasions. In such cases, the student or faculty member should obtain a receipted bill for the money expended. Where bills or receipts are unobtainable, an itemized statement, signed by the individual must accompany the disbursing order to support this request for reimbursement. Negative Balances: No account, at any time, should have a negative balance. Exceptions may be made by the principal for temporary negative balances that will be funded with incoming receipts, such as from an upcoming fundraiser. Year-End Audits: Student activity records and financial procedures are subject to internal audits by the Business Office and to outside audits by independent auditors. Activity accounts are subject to audits at any time, not just at the end of the year. Fiscal Year End: At the end of the fiscal year, activity groups will carry over all balances to the next fiscal year for the continued use of each group. It should not be the intent of student activities to accumulate significant sums for future needs. Money raised in a specific academic year should be spent in that same year if practical. This ensures that the students raising the money receive the benefits from their efforts. Exceptions are made for those groups that plan for bi-annual travel experiences. Retention of Records: Activity fund financial records should be kept at least seven (7) years and supporting documents must be kept at least until audited. The faculty advisor in charge of the fund raising project is responsible for keeping required sales and financial records and forwarding these records to the next advisor or the building principal if the staff member discontinues as advisor. Revised: 02/11/13 Approved: 09/08/03 8