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General Principles

General Principles

This page enumerates the general principles relating to Student Activity Funds

General Principles


GENERAL PRINCIPLES
1) Student Activity Funds are student-owned property, in the nature of a trust for educational purposes. Additionally, there are private funds, which are funds given by students for a special purpose to a school official acting as their agent for purchase of goods and/or services (e.g., class rings; class trips, etc…).

 
2) Student Activity Funds are used to finance a program of activities not part of the regular curriculum; however, the activities can operate only for purposes that are related to the school educational program.  For a student activity to be educationally related, it must not only be approved or sponsored by the school board, it must, in truth, be related functionally and in subject matter to the school program.

 

3) Student Activity Funds may augment but not replace funds provided by the School District.

 

4) The principal is to approve the establishment or termination of each and every activity.

 

5) Student Activity Funds should be collected and disbursed under the general direction of the principal:

    a) However, the principal should involve in the decision-making process those student groups and faculty members who are responsible for generating revenue for approved projects.

    b) In order to evidence the involvement of students in the decision-making process, detailed minutes are to be kept of each meeting showing students present, the issues to be resolved, and the decision/outcome that was reached.  

 

6) Student Activity Funds shall, in so far as possible, be expended in such a way as to benefit those pupils currently in school who have contribut­ed to the accumulation of such funds.  The amount of monies in the Student Activity Funds is not to exceed current needs.

 

7) Preferably, interest earned on the Student Activity Funds checking account is to be prorated to each activity based on its average monthly balance.  

    a) However, if this is not practical (because the amount of interest earned is not material or because there are too many funds), then it is permissible to apply the interest earnings directly to the Student Body Activity Account (SBAA).

    b) Interest earned on investment accounts specifically related to certain activities (i.e., CD accounts tied to a memorial or scholarship fund) should be credited directly to the related activity account.

 

8) The management of Student Activity Funds shall be in accordance with sound business practices, including sound budgetary and accounting procedures which may be subjected to periodic audits. The preferred method to account for Student Activity Funds is an automated double-entry accounting system (such as QuickBooks). The use of accounting software greatly strengthens the internal control environment.

 

9) Monies belonging to the Faculty Association or the Home and School Association shall not be deposited into the same bank account as student activity funds. Adherence to the principles listed above will do much to guarantee a worthwhile program of student activities and to generate confidence in the conduct of these activities on the part of students, parents, and faculty.