You are here: Home Internal Audit Activity Fund Manual Chapter I - Activity Fund Accounting Activity Fund Principles

Activity Fund Principles

  • 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 by the school. They 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.
  • Student activity funds must be used to finance a program of non-curricular activities augmenting, but not replacing, the activities provided by the school district.
  • Projects for the raising of student activity funds shall contribute to the educational experience of students and shall not conflict with the instructional program.
  • Funds derived from the student body must be spent to benefit those students currently enrolled who have contributed to the raising of such funds and must benefit the student body as a whole.
  • Student representation is an important factor in the democratic management of funds which are raised by and expended for the benefit of students and shall be required whenever possible or feasible.
  • The management of student activity funds must be in accordance with accepted business practices, including budgetary and accounting procedures, as well as audits, in the same manner as the district’s operational funds.
  • The Board of Education shall, from time to time, promulgate and revise rules and regulations for the supervision and administration of student body financial activities to conform in principle with the laws governing public monies.
  • The club sponsor shall bring all monies collected, and balanced to the receipts, to the bookkeeper or the designated cashier by the end of each school day. Snack bar deposits must include cash register tapes, inventory sheets, etc., as supporting documentation.
  • Student activity funds shall never be used for any purpose which represents accommodation, loan, or credit to any individual (6-10-40 N.M.S.A., 1978 Compilation, as amended.).
  • Policies governing student activity expenditures apply whether payment method is check or petty cash. Evidence supporting all expenditures must be kept on file and must be in the form of an itemized receipt or invoice. Statements or canceled checks do not completely meet this requirement. Where exceptions are noted elsewhere in the manual, the bookkeeper is responsible for verifying the validity of the obligation prior to payment. A voucher system for disbursements is required.
  • No student body shall be required to pay for any expenditure made by a student or teacher, or by any other employee who has not first obtained a purchase order and received authorization from the proper office.
  • Maintain all documentation for subsequent review by internal personnel and external auditors to ensure that the required procedures have been followed.
  • No activity fund account shall ever be permitted to incur a deficit balance.
  • A minimum of two signatures are required for any banking activity. One must be the school principal or his/her administrative designee.
  • Schools must maintain enough money in the checking account to cover anticipated expenditures for the year.
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