STUDENT ACTIVITY FUND AND OTHER ORGANIZATIONS
This policy is a confirmation that the Board of Education, by the authority of Minnesota Statute 123B.49, assumes the direction and control of the student activity funds.
Private organizations, such as PTAs, Parent Booster Clubs, etc. are independent entities that perform their own financial accounting, and cannot have a school district account.
II. GENERAL STATEMENT OF POLICY
The use of student activity fund accounts shall be in compliance with the Manual for Uniform Financial Accounting and Reporting Standards (UFARS) for Minnesota Schools.
A. The supervision and control of student activity accounts shall be the responsibility of the school principal or designee.
B. The student activity accounts shall be separate and identifiable in the School District’s UFARS chart of accounts.
C. The student activity accounts shall be included in the annual school district audit with periodic reporting to the School Board.
D. All gifts and donations made to or originating from the student activity accounts’ require School Board approval.
E. All contracts must be approved by the School Board.
III. INACTIVE ACCOUNTS
The School Board may terminate a program or activity. In general the Board will dissolve a student activity account after two years of inactivity and the balances shall be transferred or donated to another student activity.
IV. OTHER ORGANIZATIONS
The School Board shall not maintain or account for funds generated by non-students, including but not limited to, convenience funds for staff members, Parent Booster Clubs, or parent-teacher organizations or association funds.
Such organizations must maintain bank accounts separate from school district accounts and separate disbursement and accounting mechanisms.
A. In order to maintain proper separation of disbursement and accounting mechanisms, school district employees are not permitted to make deposits into a bank account maintained by such an organization, or write checks against such account, or reconcile such an account. A school employee shall not act as the treasurer for one of these organizations. For purposes of this policy, a school employee does not include a school board member or temporary or seasonal employee (working fewer than 67 days in a calendar year).
B. Such organizations shall not use the District’s letterhead, tax exemption I.D., and shall not hold themselves out to be a branch of the school.
C. The School District encourages external fundraising groups to follow appropriate accounting practices and conduct annual audits of financial records by an independent source.
D. The School District’s business office shall provide guidance on compliance with this policy upon request of the individual organizations.
Legal References: Minn. Stat. 123B.76-77 - Uniform Financial Reporting and Accounting Standards (UFARS)
Cross References: UFARS Manual, Chapter 14, Manual on Activity Fund Accounting (MAFA)
ADOPTED BY THE BOARD OF EDUCATION: April 2, 2001
REVISED BY THE BOARD OF EDUCATION: February 6, 2006, November 20, 2006
703.1 Administrative Guidelines
STUDENT ACTIVITY FUND AND OTHER ORGANIZATIONS
The purpose of this guideline is to assist in the implementation of Policy 703, pertaining to the School Board’s assuming the direction and control of the student activity accounts.
Whenever it is beneficial and in the best interest of the district for students to participate on a sport or educational activity connected with their studies and outside of the territorial limits of the district, the board may authorize such activity.
A. Student activities have all of the following characteristics:
1. The activity is not offered for school credit or required for graduation.
2. The activity is conducted outside schools hours, or if partly, during school hours, at times agreed by the participants, and approved by school principal.
3. The activity content is determined primarily by the student participants under the guidance of a school advisor.
4. The activity is self-sustaining. All expenses, except advisor salary and indirect costs incurred by the use of school facilities, are paid by the activity.
B. Private organizations, such as PTAs, Parent Booster Clubs, etc., are Independent entities that perform their own accounting, and can not have a student activity account.
1. In order to maintain proper separation of disbursement and accounting mechanisms, school district employees are not permitted to make deposits into a bank account maintained by such an organization, or write checks against such account, or reconcile such an account. A school employee shall not act as the treasurer for one of these organizations. For purposes of this policy, a school employee does not include a school board member or temporary or seasonal employee (working fewer than 67 days in a calendar year).
2. Such organizations shall not use the District’s letterhead, tax exemption I.D., and shall not hold themselves out to be a branch of the school.
C. A student activity account is not to be used by the schools to receive commission sales from vending machines, and school picture sales.
A student activity account must serve a specific group of students and is not to be used to circumvent the district’s standard purchasing and accounting practices.
A. Acceptable activity account expenditures:
1. Expendable supplies spent on the operation of the activity.
2. Contracted services, and equipment purchases require School Board Approval before the actual expenditure is made.
B. Unacceptable activity account expenditures:
1. Salaries of advisors and/or any incidental expenses arising from the use of school property.
2. Payments for services performed by an employee of the district.
3. Faculty travels, unless such travel expense is clearly in connection with the operation of the student activity.
C. Certain expenditures may be authorized by the principal using a student activity check request form.
1. Supplies and materials for the operation of the activity.
2. Customary expenses of student activities, such as travel, food, lodging, registration fees, tickets for admissions, refreshments, and entertainment.
D. All transportation needs should be coordinated with the transportation office.
A. Revenue should include any donations, membership fees, admissions, or proceeds of any activity sponsored fund raisers. Gifts and donations must be approved by the school board for activities. Gifts may require governing board approval for acceptance.
B. Deposits in the designated activity fund bank account are to be made promptly.
C. All revenue collected from vending machines or school pictures are district revenues, and are to be deposited in the district’s bank account.
A. A check will be issued on the basis of properly approved check request form. The request shall provide the following information:
1. Name of Organization
2. Explanation of Disbursement
3. Name of Vendor(s)
4. Date Requested
5. Account Code
6. Appropriate Documentation (i.e., original invoice, sales slip)
B. Disbursement must be approved by:
1. Individual Activity Fund Student Treasurer (when applicable)
2. Activity Advisor and/or
C. Deficit financing, or writing a check against an account which has an insufficient cash balance is not an acceptable practice.
D. The student activity “petty cash envelop” is maintained in the principal’s office and should be used to reduce the number of check requests and expedite reimbursements. As a general rule, petty cash should be used for reimbursable expenses less than $100 and as often as possible.
E. The use of personal checking accounts by advisors or principals to support student activity expenses is prohibited by law.
VI. DISCONTINUED ACTIVITY ACCOUNTS
An activity fund balance should be disposed of when the original purpose of the fund no longer exists. The principles dealing with the liquidation of a nonprofit corporation, contained in M.S. 317.57, 1974 are applied.
A. First, all liabilities and obligations should be paid.
B. Second, any money that was received subject to a special limitation, if the condition or limitation occurs because of the liquidation of the account, it should be returned to the donor.
C. If any funds were donated with a specific purpose, which purpose could be fulfilled by donating the funds to another organization, then the funds should be so donated.
D. In the absence of any restrictions, money remaining after the above distributions may be distributed, subject to the exception listed below.
1. One restriction on the distribution is: Student activity funds shall not be used for any purpose which represents an accommodation, loan, or credit to any individual.
2. A student activity may be dissolved by the members whenever entire membership graduates (i.e. class funds) or when the organization cannot be advised or maintained by a district employee.
3. Balances shall be transferred or donated to another organization prior to being dissolved.
VII. FISCAL REQUIREMENTS
A. Any changes, termination or addition of an activity account shall be documented by the school principal and coordinated with the business office.
B. The school principal shall insure that all accounts are in compliance with the Manual on Activity Fund Accounting (MAFA). The principal shall be responsible for providing each activity advisor with the manual and supervising their compliance.
C. The account records shall be reconciled monthly by the activity treasurer and the school district business office.
D. An annual student activities budget shall be prepared for approval by the School Board.
E. Activity account reporting shall routinely be provided to the School Board and included in the annual financial audit report.
VIII. ENTERING INTO CONTRACTS
All contracts must be approved by the School Board. Any other contract arrangement is considered null and void by the school district, and may become the personal liability of school personnel.
The contracts for vending machines, year book and school picture sales must be approved by the School Board.
Cross References: Uniform Financial Accounting and Reporting Standards (UFARS)
Policy 653 – Field Trips
Policy 744 – Co-Curricular & Athletic Transportation
Legal References: Minn. Stat. 123B.76.77, UFARS
Minn. Stat. 123B.76-77, Chapter 14 – MAFA Manual
Minn. Stat. 123B.49 - Co-Extracurricular
Minn. Rule 3500.1050 - Co-Extracurricular
Minn. Stat. 123B.35-38 - Pupil Fees
Minn. Stat. 123B.09 & .52 - Contracts
Minn. Stat. 123B.02, subd. 6 - Gifts
Minn. Stat. 471.345 - MN Bid Law
Dated: May 7, 2001
Revised: February 6, 2006, November 20, 2006