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Activity Fund Classifications

School activity fund accounts identify the classes, clubs, or groups conducting activities for which the transactions are administered by the school. They are classified into one of the categories listed below that indicate the types of revenues and expenditures associated with the accounts.

The accounts are not limited to the example accounts listed below.

School-Wide Activity Accounts

(School-Sponsored Sports; Administration; School Publications; Library; Band; Chorus) These accounts are financed by revenue obtained directly from the operation of a school-wide activity. Expenditures must benefit the entire student body, directly or indirectly, or benefit that program which is available to all interested students.

Student Funds

(Class accounts; DECA; Honor Society; Clubs; etc.)
Accounts which derive revenue through students’ club activities. All expenditures must benefit the club. Club revenues must be receipted in accordance with District policies/procedures.

A general guideline for the overall use of fund-raisers for any student activity club is that the profit should be used as a supplement to education. Food purchases are allowable when intended to encourage student involvement.

Funds remaining in inactive or dissolved clubs should be spent on related school activities, transferred to a similar account, or transferred to a school-wide account. Authorization by the principal is required for the treatment of inactive and dissolved club funds.

Any transfer of funds to a specific student activity account from an account of another activity fund classification (School-Wide, Trust, or Enterprise) must be approved, in writing, by an organization representative of the entire student body of the school.

Clubs with ongoing purchases totaling over $10,000 annually from one vendor must comply with the Procurement Code. (The APS Purchasing Department maintains an approved vendor bid list.)

Trust Accounts

(Yearbooks, School Pictures, Textbooks)
Trust Accounts are used to collect money for subsequent distribution to a third party recipient. Expenditures must benefit the ultimate recipient. These accounts do not have to comply with the State Procurement Code (page 26).

Examples of Trust Accounts are yearbooks (provided that nothing goes into this fund, but the price paid voluntarily by students for yearbooks and proceeds from the sale of advertisements), accounts for class rings, school pictures, cap and gown rentals, graduation announcements.

Profits from Trust Accounts may be transferred in the same manner as profits from enterprise accounts; likewise, purchases with these profits must adhere to the State Procurement Code. This does not apply to the actual purchasing of the yearbooks, etc., only to subsequent purchases made from profits.
Fund-raisers initiated by a specific club and proceeds and expenses deposited to a special club account are considered Student Funds, not Trust Funds.

Enterprise Accounts

(Snack Bar, Interest Earned, Vending)
Enterprise Accounts derive revenue from Savings/Investment Account interest and/or from the sale of merchandise or services (snack bars, vending machines). These revenues should remain in the account to the extent needed to pay expenses of the activity. Net proceeds may then be spent after transferring approved amounts to other activity fund accounts. All expenditures must directly or indirectly benefit the student body.

  • Inasmuch as proceeds are generated from the student body as a whole, all transfers from these accounts must be to accounts that benefit the student body as a whole; i.e., School-Wide Activity Accounts.
  • Principals may assign oversight of specified vending machines to student groups to which a designated portion of the profits may be transferred. This determination should be justified and without favoritism.
  • Snack bar operations run by school groups must include use of cash register tapes or daily inventory forms to support the proceeds remitted to the bookkeeper for deposit.


The only expenses which should be reflected on these accounts should be those related to that particular account. If funds are used to supply other accounts, they should be transferred first to that account, and then, the proposed expense should be charged to the account to which the funds are transferred.

Faculty Funds

Accounts which derive revenue from profits generated from faculty, including teacher lounge vending machines. This fund may also receive up to a 10% allocation of profit from snack bar activities open to faculty as well as students.
Faculty Funds should not be confused with Social or Sunshine Funds. Funds from the two accounts must not be co-mingled.

Social, Sunshine, Hospitality Accounts

When the faculty establishes these types of accounts, which are financed strictly from donations from the faculty members, the faculty may elect to handle those funds separately from the school’s activity fund. If this election is made:

  • The custodian of the fund must arrange for a separate bank account for the fund.
  • The school district’s tax exempt number or tax ID number may not be used in any manner.
  • The school’s mailing permit may not be used.
  • No accounting to the school need be made.

If the staff elects to deposit the funds in the school’s activity accounts, adherence to the rules and procedures in this manual will apply, except for the spending limitations set under the Anti-Donation law.

A contribution to these accounts is strictly voluntary.

Class Fees (General Rule)

Please refer to the APS Instructional Procedural Directive on Student Fees, Charges, Fines.
In general, the charging of class fees is prohibited for classes which are part of the required curriculum, but it is permissible for classes which are elective or extra-curricular. Revenues obtained from students enrolled in such classes are to be used to purchase instructional materials necessary for those courses. All students must be issued receipts when the fees are collected in order to provide an audit trail.

For those classes in which the students pay deposits, there must be receipts supporting both the collection and the refunding of the deposits.


It is permissible for students to pay for materials as part of the required curriculum when they become their personal property.

Educational and School Support Accounts

(Lost or Damaged Textbooks, Industrial Arts)
These accounts for which the school is either acting as a collecting agent for the Board of Education or collecting funds for a school program for which an approved fee is assessed.
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