Understand Extracurricular Fund Management in Educational Institutions

Student Activity Accounting Get Your Feet Wet

Extracurricular Fund for PUPIL FUNCTIONS Pupil Extracurricular Functions Pupil/Student Organizations and Clubs Organized student activities that do not fall within the scope of the regular district curriculum. Students shall be involved in the decision making process related to the use of the funds. Section 20-9-504 MCA.

Funds that do not belong in extra-curricular accounts Faculty flower/coffee/lounge funds Booster club money Rental receipts for district facilities & equipment. Book fines Drivers Education fees Petty Cash Sale of district supplies or equipment Lunch monies Reimbursements from insurance companies Course fees

If Not Student Activity Account. USE Fund 15 - Miscellaneous Programs FUND 15 Donations / Grants Student Clubs Activity Ticket Sales Gate Receipts clothing Concessions Student Activity Account Fundraisers Spirit Pack Yearbook Referees Student Trips Coaches Drama/Plays Activity Workers Student Council

Administrative Policy The Board of Trustees must adopt a policy (MTSBA Model 7425) The Student Activity Guide published by MASBO in shall be followed in establishing accounting procedures for extra-curricular funds. Once policies are established they should be subject to constant review and expanded when necessary. All transactions in extra-curricular funds are subject to the approval of the Board of Trustees. An audit of the extra-curricular funds is conducted in conjunction with the audit of other funds of the district.

Internal Controls / Audit Considerations Audit Report: Required Supplemental Information - Schedule of Revenues and Expenditures - Extracurricular Fund GASB 84 - Trustee Report Accounting - Special Revenue Fund within the Government Wide Financial Statements Monthly Report to the Board of Trustees reconciliation and fund activity Each individual account must maintain a positive account balance

CASH BOXES Necessary for ticket sales, cake raffles, dances, etc.. Use the change fund to create your cash boxes Make your process clear on how much lead time to prepare a cash box for check out Have the person overseeing the cash box verify cash when checking out and checking it back in

Change Fund A change fund may be establishing by: Issuing a check against the bank control account, thereby reducing the cash in the bank account and increasing the cash on hand account. Retained throughout the year and would then be redeposited separately at the end of the school year.

Ticket Sales All events that charge admission (Plays, athletics, raffles, etc.) Have a system for reconciling tickets sold back to funds collected Internal controls might look like: Only Pre-Number colored strip tickets Different tickets & colors for each price class Tickets are checked out to seller Seller must reconcile at end of event number of tickets sold to money collected Watch for seller tearing off tickets at end of event to reconcile Seller and fund custodian must sign reconciliation sheet at end of event

TRAVEL A request for travel authorization and funding must be prepared well in advance of the time the funds are needed Travel forms are to contain at least the following information Date of request, date funds needed, destination/purpose of trip, estimated departure & return times, number of persons making trip, estimate of cash required, estimate of other expenses, signature of person requesting authorization, signature of approval from principal, superintendent or designee, check number and date of payment, credit card or checkbook issued, signature of fund custodian.

Payment Options for student travel Credit cards/Procurement Cards Open Account Purchase orders Per diem Cash Advances (not best practice) RECEIPTS MUST BE TURNED IN USING ANY OF THE ABOVE OPTIONS AND A FINAL ACCOUNTABILITY REPORT MUST BE TURNED IN TO THE FUND CUSTODIAN

Receipting in Money Receipts must contain the following information Date of receipt issued Payer Amount received Purpose or source of money Designated fund or funds to which to cash is to be deposited Receipts should be pre-numbered and must consist of the original and one copy Computer generated receipts and all receipts need to be initialed by fund custodian

Depositing of Receipts Closing day of each month a deposit should be made Deposit slips must show the receipt numbers that, when totaled, correlate with the deposited amount The amount of cash held at the school must not exceed the maximum coverage of burglary insurance

Cashing of Personal, extracurricular checks & school warrants. This is absolutely prohibited

Referees Referee s must be MOA licensed officials before no taxes are to be taken out Referee s must sign activity contract stating that they are solely responsible for all taxes Contract must include Contract Date Officials Name Officials Signature Officials S.S. # for 1099 s if needed (Over $600.00) Athletic Directors Signature Date If you have referees that are not MOA officials, the school district is liable for all taxes, unemployment and workers comp. Run through regular payroll Issue 1099 to ANY referee receiving more than $600.

Official Independent Contractors!! Section XXVI MHSA Handbook, page 273. Schools must pay all fees & expense allowances directly to officials with individual checks prior to the contest. Schools are NOT permitted to pay pools or officials groups any fees which are then to be later distributed to member officials. MOA members cannot accept checks written to other MOA officials. If unforeseen circumstances result in a change in official(s) scheduled to work a contest, and the school has written checks for the previously scheduled official(s), the incorrect checks(s) will not be issued or cashed. It is recommended that the school has one week from the date of the contest to reissue appropriate checks to the officials who actually worked.

Investments Compliance with MCA 20-9-213(4). Distribution of Interest Income: Credited to a general operating account within the fund to be used to offset expenses incurred in administering the fund distributed on a prorated basis.

Inventory/Fixed Assets Generally recommended that activities that require support from inventory or capital assets be accounted for within Fund 15 If for instance a very actively engaged group of students raises funds to acquire a piece of equipment that exceeds the capitalization threshold Record the Capital Outlay Expense in Fund 15 Issue a student activity account disbursement from the student club and deposit it to Fund 15.

Intra-Fund Transfers Transfers of money from one student account to another is allowed only when such transfer is justifiable and supported by proper authorization Approval of fund account sponsor, president or treasurer Approval of school Principal Approval of Board of Trustees consent agenda Appropriate Accounting - Transfer Code not revenue/expense Seperate column on the Schedule of Student Activity Fund Accounts

Extracurricular Payroll If the activity requires compensation to District Staff, consider using Fund 15 as opposed to the student activity accounts. Alternatively, utilize District Fund 84 to code the payroll expense(s) Issue a student activity account disbursement from the student club and deposit it to Fund 84. District Fund 84 should be a Zero Balance Account at the end of each month.

Disbursing Procedures and Requirements All extracurricular fund disbursements must initiate with and be authorized by representatives of the fund accounts to which the disbursement will be charged. (Class or Club president, treasurer)

Disbursement authorization Must Contain Name of Vendor or payee Date of order Fund account or accounts to be charged Detailed description of items or services purchased Signatures required (fund sponsor, president or treasurer and fund custodian Verification of receipts of goods or services (invoices, packing slips, etc.) Following payment, check number should be added to authorization form NO CHECKS SHOULD BE ISSUED PAYABLE TO CASH!!

References Student Activity Fund Accounting manual found on MASBO web site. www.MASBO.com ASBO Student Activity Fund Accounting Manual www.asbointl.org

THE END Carrie Fisher-Belgrade School District (406) 924-2031 cfisher@bsd44.org TJ Harold-Marmon-Ronan School District (406) 676-3390 TJ.Marmon@ronank12.edu Dustin Zuffelato Columbia Falls School District (406) 892-6554 d_zuffelato@cfmtschools.net Stacy Montgomery-Forsyth School District (406) 346-2796 smontgomery@forsyth.k12.mt.us

Enjoy the Rest of your Summer Conference!!