4:090-AP1 Management of Student Activity Funds

Definitions

A student activity fund means funds owned, operated, and managed by teams, ensembles, organizations, clubs, or associations within the student body under the guidance and direction of one or more faculty or staff members for educational, recreational, or cultural purposes. (Examples: homeroom, yearbook, class year, choral or band group, class projects, student clubs, student council, student-sponsored bookstore)

Use of Activity Funds

The purpose of raising and expending activity funds is to promote the general welfare, education, and morale of all the students and to finance approved extracurricular and co-curricular activities of student body organizations.

Activity money should be expended for the benefit of students who contributed to the accumulation of the money.  Money collected by a student body as a whole will be expended for the benefit of the student body as a whole and not for the benefit of a special group.  

The use of student activity funds is subject to 23 Illinois Administrative Code Sec. 100.80 and all applicable Board Policies.

Money raised in a specific academic year may be carried over to the following year, with limitations described herein.

Activity Fund Management (Account Establishment, Transactions, Transfers, and Balances)

  1. No activity may maintain funds without the approval of the Principal or designee and the written authorization of the Board’s Treasurer.  School-sponsored organizations may not maintain their own accounts at a local bank.
  2. All funds will be deposited and disbursed from a depository (bank) approved by the Board of Education.
  3. All deposits, check requests, expenditures, and payments must be approved by the Principal or their designee.
  4. Transfers between activity accounts may occur only with the written approval of the District’s Treasurer.
  5. The activity may not roll over a year-end balance that exceeds 10% of the average annual revenue collected.
  6. If an account of a school-sponsored activity or club has a cash balance remaining after a one-year period during which there is no activity in the account or if the activity or club ceases to exist, this balance may be:  (1) transferred to another activity account, (2) expended by the Principal or their designee in a manner that is consistent with the purpose of the activity account.
  7. Accounts may not be overdrawn without approval from the Principal or designee and in anticipation of receipts of equal or greater value.
  8. Purchasing items for District use, for or from District employees or their immediate family members, is strictly prohibited.

Activity Fund Revenues

Funds for student activity accounts may be accrued through one of the following methods:

    1. Student Participation Fees.  Extra and co-curricular student groups and activities may assess a participation fee to all students to cover expected costs of supplies and activities the group will incur. Such fees are only allowable if:
      1. The Activity Sponsor (Director, Coach, etc.) has submit a detailed, line-item budget of projected expenses and student participation numbers to justify the student fee.
      2. A student may not be denied membership/participation because of inability to pay.
    2. Fundraising.  Fundraising expenses that are clearly identified as a fundraising expense (i.e. supplies, fees, materials, advertising, etc.).
      1. The Principal or their designee exercises general control over all fundraising activities and must approve all such activities as per Board policy 7:325, Student Fund-Raising Activities.
      2. No organization, club, or individual should be involved in a fundraising process that is a lottery in nature and offers prizes to a few but nothing to the majority.  
    3. Donations.  Donations to student activity accounts may be accepted, subject to Board policy 8:080, Gifts to the District.

Activity Fund Expenditures

  1. All purchases shall must have the prior approval of the activity sponsor and the Principal or designee before being processed and follow Board policy 4:060 Purchases and Contracts.  Any purchases of $25,000 or more must be approved by the Board of Education and may be subject to competitive bidding requirements.
  2. Purchases should be made by Procurement Cards whenever possible, subject to Board policy 4:055, Procurement Cards.
  3. All contracts to be entered into on behalf of the District shall be approved by the Principal or designee (not the activity fund sponsor), per Board policy 4:060, Purchases and Contracts.
  4. Activity funds should be expended for the benefit of students who contributed to the accumulation of the money, examples of allowable expenditures include:
    1. A gift to the school, either monetary or otherwise, with the approval of the Activity Sponsor/Coach or the Principal or their designee.  If the gift is monetary and non-designated, it may be spent by the Principal or their designee for Activities and Operations at his/her discretion for the benefit of the student body.
    2. Supplies that are clearly identified as the student club/organization’s operational expenses.  
    3. Uniforms and assistant apparel that will be used by all members of the student organization, including student helpers, coaches, volunteer coaches and other people involved in that team.
    4. Food and beverages when all students in the organization are invited to participate.
    5. Conference and related meal/hotel costs that are required attendance for a sponsor, coach or club member representative.   
    6. Publications such as magazines, books, periodicals when such publications will be used for the benefit of the student organization involved.
    7. Organizational fees, dues, and memberships.
  5. Activity funds may not be expended for the benefit of non-members of the student group, examples of prohibited expenditures include:
    1. Meals and refreshments for coaches/advisors meetings.
    2. Clothing for Coaches that are not specified as being required for participation in the student club/organization.
    3. Prepaid expenses without proper detailed documentation.
    4. Sales tax from which the District is exempt.
    5. Any purchases for uniforms, team apparel, etc. as gifts to people outside of team involvement.  (Team involvement includes coaches, players, volunteer coaches, student helpers).

Account Reconciliation Reports

An account reconciliation report must be submitted by the account custodian to the Business Office each month.  The reconciliation report must include:

  • The list of any outstanding checks
  • A transaction report from the general ledger
  • A copy of the bank statement
  • Bank Statement Edit Listing
  • Bank Reconciliation Report

The general ledger and bank balance amounts should match, indicating that the books are balanced.

 

Cross References:

4:055 Procurement Cards

4:060 Purchases and Contracts

4:080 Accounting and Audits

4:090 Activity Funds

4:142 Student Fees

7:325 Student Fundraising Activities

8:080 Gifts to the District

Legal References:

23 Illinois Administrative Code Sec. 100.80

Date Reviewed: April 26, 2016