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Activity Fund Audit Compliance Procedures

Each Albuquerque Public School and district department, upon approval from the Finance Department, may maintain an activity fund account.  Activity funds include accounts for which the disbursement or receipt of money is under the control and supervision of a school official or employee.  School activities are those activities that are financed in whole or in part by the operation of the school activity program and have their money administered at the school. The funds may be of a classroom or extra-curricular nature and may include student clubs, student organizations, student publications, and sale of merchandise through a classroom or school store.

The management of activity funds shall be in accordance with sound business practices, including budgetary procedures and thorough audits.  Each activity fund account shall be audited, by the APS Internal Audit Department, at least one time per school year.  Audits that are rated non-compliant shall be repeated on a quarterly basis until the audit rating is better than non-compliant.  Activity fund audit results shall be presented to the Albuquerque Public Schools Audit Committee during scheduled meetings.

In an effort to minimize the occurrence of audit findings and to implement stronger controls on activity fund accounts, requirements for management of all activity funds shall be as follows:

  1. All schools and district departments (i.e. Fine Arts) that have an activity fund account shall use district approved activity fund accounting software.
  2. A school or district department meeting the following conditions shall have the activity fund transferred to the district finance and accounting software  and shall be directly supervised by the Finance Department:
    1. Any school or district department which is currently rated non-compliant and is also rated non-compliant in the next consecutive activity fund audit; or,
    2. Any school or district department whose last two out of three consecutive audits are rated non-compliant.
    3. Schools or district departments under the supervision of the Finance Department shall be required to close its school or district department checking account.  Signatory authority over investment accounts, if any, shall be transferred to the Finance Department during the time the school or district department is under the Finance Department’s supervision.
    4. Schools or district departments under the supervision of the Finance Department shall continue to receive and receipt funds, make deposits, and forward supporting documentation to Finance as deemed appropriate in the Activity Funds Manual.  However, disbursement of funds shall be requested by the school or district department through the district finance and accounting software.
    5. Any school transferred to the Finance Department shall notify its parent organization in writing that all fundraising shall be the responsibility of the school administration for the period of time the school's activity funds are directly supervised by the Finance Department. During this period of time, the school's parent organization shall be unauthorized and prohibited from any fundraising activities except as agreed to and under the supervision of the school administration.
    6. Any school or district department transferred to the Finance Department shall be under the supervision of the department for a two-year period and must attain audit ratings better than non-compliant during that time.  At the conclusion of two years of acceptable audit ratings, the school/department may once again manage their own funds.
    7. Training relative to this process shall be provided to the school/department personnel by the Finance Department.

     

    Administrative Position: Chief Finance Officer/Chief Operations Office

    Department Director: Executive Director of Accounting/Internal Auditor

    References:
    Legal Cross Ref.:  §22-8-1 et. seq NMSA 1978

    Board Policy Cross Ref.:  DM Activity Funds and Cash in Schools
    Procedural Directive Cross Ref.:  Activity Fund Manual

    NSBA/NEPN Classification: DM

    Introduced: April 9, 2014
    Reviewed: April 22, 2014
    Reviewed: April 25, 2014
    Adopted: April 25, 2014

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