6610 - STUDENT ACTIVITY FUNDS

Southern Local School District

Administrative Guidelines

6610 - STUDENT ACTIVITY FUNDS

	A.	Collection and Deposit of Cash
		All money collected from any source should be substantiated by pre-numbered student activity group receipts, cash registers supplying cumulative readings, pre-numbered tickets or other auditable, checkable records. In all cases, where tickets are used, ticket reports and unsold tickets must be available for audit. The audit trail is most important. Where it is not practicable to collect the cash in a central office, collections from various classes may be collected by the appropriate person and turned into the Treasurer once every twenty-four (24) hours.
	B.	Financial Forms

		1.	Should be pre-numbered
		2.	Perpetual inventory should be maintained on pre-numbered collection forms, receipts, tickets, etc.
		3.	Pre-numbered forms should not be printed in the school printing department
		4.	Sponsor should keep records of collections, by source
		5.	No collection should be turned over to cashier without receiving a pre-numbered receipt

	C.	Disbursements
		All disbursements shall be made by check (warrant), prepared by the Treasurer, supported by a proper, approved requisition and purchase order, and verified by a receiving invoice. They also should be verified for accuracy of price extensions and totals.
	D.	Purchase Order Process

		1.	Requisition prepared by originator and submitted to principal or supervisor, for approval
		2.	Reviewed by principal; if approved, forward to the Superintendent or authorized administrator
		3.	Approve purchase order
		4.	Forward to Treasurer for certification and encumbrance of funds, posting to files, copy to vendor, originator, and business office
		5.	Originator verifies receipt of material, compares with purchase order, and submits shipping itemized invoice to Treasurer as correct and proper for payment
		6.	Originator compares billing invoice and shipping invoice to purchase order for prices, column extensions, necessary adjustments, etc.
		7.	Treasurer issues check (warrant) for payment
		8.	Small expenditures (within established dollar limitations) may be made from a petty cash fund maintained on an imprest system (described in Supplement 17 - USAS Manual). Such imprest system must address dollar amount, location, limitation of disbursement; also cash plus receipts must always equal the amount authorized for petty cash.

	E.	Auditing
		The State Department of Education requires an annual audit of student activity funds. The Bureau of Inspection and Supervision of Public Offices recommends that at the end of each school year, an internal audit be conducted in order to verify compliance with Board policies, receipts, expenditures, cash on hand, petty cash, and to balance all ledgers and journals with the depository. A copy of this audit should be on file in both the Superintendent's and Treasurer's Office. All organizational records and internal audit working papers should also be retained in the Treasurer's Office so that they may be audited by the Bureau.
		Each activity fund established under R.C. 3315.062, will be audited by the Bureau of Inspection and Supervision of Public Offices at the same time the examination of the records and accounts of the School District is made or at such other time as needed or as requested by the Board.
	F.	Management of Funds

		1.	Fund 200
			The Fund 200 consists of those student activity programs which have student participation in the activity and have students involved in the management of the program. This includes those student activities which consist of a student body, student president, student treasurer, and faculty advisor. The Fund 200 is a fiduciary fund-type trust fund classification.
		2.	Fund 300
			The Fund consists of those programs which have student participation in the activity but do not have student management of the programs. This would usually include athletic programs but could also include the band, cheerleaders, flag corps, and other similar types of activities. The primary criterion for determining how funds are classified is "who determines how the money is spent?" The Fund 300 is a governmental fund-type special revenue classification.

	G.	Establishment and Maintenance of Student Activity Funds
		In compliance with the laws of the State for the establishment and maintenance of a student activity fund the following guidelines shall govern each such District fund:

		1.	The gross amount of monies received and paid out in connection with student activity funds subsidized by the Board shall be recorded through the general Board accounts.
		2.	Each student activity organization or group which has financial transactions shall establish an account on the District records in which it shall record its transactions.
		3.	Advisors or sponsors shall be selected at the direction of the Board and their duties shall consist of preparing the annual budget and purpose clause of their activity group, supervising the activities of their group including preparation of fund raising potentials, maintaining group financial oversight and such other duties as assigned by the principal or Superintendent.
		4.	Student-activity funds shall not be used for any purpose which represents an accommodation, loan, or credit to Board employees or other persons. Post-dated checks may not be accepted and checks may not be cashed for anyone.
		5.	Board employees or others may not make purchases through a student body in order to take personal advantage of student-body purchasing privileges.
		6.	No student-activity organization shall be obligated for purchases made by students, faculty, and/or others unless supported by a written purchase order signed by he Superintendent/Treasurer.
			Examples of expenditures which are prohibited are:

			a.	all items for personal use;
			b.	contributions to fund-raising drives for charitable organizations unless part of a group's purpose and objectives statement.

		7.	A financial report of the condition of each student activity fund shall be submitted to the Board monthly by the Treasurer.
		8.	Fund-raising projects for any student activity shall, in general, contribute to the educational experience of students and shall not conflict, but add to, the instructional program.
		9.	All sales projects or programs must be approved by the principal and the principal.
		10.	The Board shall appoint cashiers and shall execute a bond in an amount and with surety to be approved by the Board. Such bond shall be payable to the Board and deposited with the Treasurer.
		11.	All sources of revenue must be approved by the Board and shall be included in the student-activity group's current-year budget. Receipts and expenditures must be coded by USAS Classification provided by the State Auditor's Office.

			a.	Records shall be maintained of the receipt and disbursement of all such monies in accounts according to the activity involved.
			b.	Disbursements shall be made by check only upon the request of a staff advisor and the approval of the Superintendent.
			c.	and the Treasurer.

		12	;No purchase may be made unless there is sufficient cash in the fund to pay for that purchase, plus outstanding orders. Where insufficient funds exist, a request for transfer from the General Fund may be made to the activity fund.
		13.	All funds should be of an exchange nature and large balances should not be permitted to accumulate. Money should not be raised or collected unless there is a definite purpose for doing so.

	Investments shall be approved by the Board. Interest earned on the investment of these monies should be handled in accordance with State law.

	All funds accumulated in the name of a specific class or discontinued activity must be withdrawn from that account within one year following the graduation of said class or discontinuance of such activity in order to meet any outstanding bills and any residual funds shall revert automatically to the general fund.

	In no event shall a balance be divided among members of the class.

H.

Establishment and Maintenance of Athletic Funds (Student Activity Funds)

		1.	The principal and Superintendent shall be responsible for the approval of requisitions for expenditures of funds.
		2.	Purchase orders for goods and services purchased through the athletic fund will be approved by the Superintendent and Treasurer.
		3.	No athletic fund organization shall be obligated for the purchases made by students, faculty, and others, unless such purchase is supported by a written purchase order signed by the Superintendent and Treasurer.
		4.	Disbursements from the athletic fund will be made by check and approved by the Superintendent and Treasurer.
		5.	At the conclusion of each athletic program, the head coach shall, within four (4) weeks, submit an inventory of all equipment and supplies to the athletic director.
		6.	Athletic director shall annually submit for approval by the Board a statement of projected revenues and expenditures.
		7.	All athletic fund-raising activities by a school shall be approved by the principal.

	I.	All monies collected should be deposited with the Treasurer or in a designated depository within twenty-four (24) hours of collection or the next business day following the last business day of that week.
	J.	Funds collected through the principal's office will be processed through either the General Fund or the Principal's Fund.
	K.	Payments from a student-activity fund to an employee are subject to standard payroll deductions.
	L.	All expenditures from a student-activity fund shall be in accordance with the approved budget. Authorization for an expenditure must be accompanied by an approved requisition processed by a formal purchase order, and certified by the Treasurer that funds are available for the expenditure.
	M.	Expenditures of funds, derived from the student body as a whole, shall be so expended as to benefit the student body as a whole, and not for the benefit of a special group.

Revised 11/18/91