FILE: DK
ACTIVITIES FUNDS MANAGEMENT
Student activity funds are those funds raised or collected for school-approved student groups, gate receipts, and student activity card fees. The Ouachita Parish School Board shall require all student activity funds to be collected and expended for the purpose of supporting the school's extracurricular activities program. Student body representation should be encouraged whenever possible.
The principal of each school shall be responsible for all school/student accounts. The principal may assign one or more school staff member(s) to share the responsibility for assuring that accounting records are maintained in accordance with the district’s Local School Accounting Procedures Manual. The system of accounting for school monies shall be in conformity with the district accounting procedures. The principal, however, shall have the ultimate responsibility for supervising the accounting functions to be performed at the building level.
SCHOOL CLUBS AND ORGANIZATIONS
The School Board shall require all activity funds generated by a club, organization, association, class, athletic team, or any other organization not eligible for a designation under Internal Revenue Service (IRS) Code §501(C)(3), within the school to be deposited into a school fund bank account. Separate records of all financial transactions of the school fund account shall be maintained by the principal for each group. No monies shall be drawn on the school fund account without a request for withdrawal which carries two (2) signatures, one of which shall always be the principal's. No withdrawal shall occur unless the check carries the signature of the principal, or the administrator who assumes his/her duties during his/her absence.
The records of the school account shall be reconciled monthly, and an annual financial report shall be printed and submitted to the Internal Auditors in the Business Department for review and approval, and the principal notified accordingly. The School Board may require and provide for an audit of the school fund of any school within its jurisdiction at any time.
All fundraising activities of all clubs or organizations other than those designated under (IRS) Code §501(C)(3) shall be approved by the principal and may be subject to audits from the central office.
BOOSTER CLUBS/OUTSIDE ORGANIZATIONS
Funds generated by an entity designated under (IRS) Code §501(C)(3) outside the school, such as a parents' club, community, business, civic or other similar type of organization, are considered to be independent funds under the exclusive control and supervision of the club or organization. The Board, however, shall require all such funds, when expended for any school function, activity, or purpose, to adhere fully to all state and federal statutory and regulatory provisions.
In addition, the Board may place restrictions on the donation and usage of any monies by an outside source, i.e. club, organization, or entity, to a school or Board-related entity. Specifically prohibited shall be the donation to an individual employee of the School Board anything of economic value in the form of money, personalized articles, automobiles and/or their use, travel, entertainment or vacations. The Board reserves the right to examine the provisions of any and all prospective donations to a school or Board-related entity to ascertain the propriety of the donation.
Cooperative Endeavor Agreements with Organizations
An organization earning funds in the name of the Ouachita Parish School System or in the name of a school shall be required to enter into a Cooperative Endeavor Agreement with the Ouachita Parish School Board. Among the organizations that shall be required to enter into such an agreement includes, but are not limited to the following: PTA, PTO, PALS, school organizations/clubs, and booster clubs.
All funds earned in the name of the Ouachita Parish School System or in the name of a school must be deposited into the school accounts of the school the funds were earned for, except for (IRS) Code §501(C)(3) corporations. A §501(C)(3) corporation shall be responsible for accounting for the receipt and disbursement of the funds earned in the name of the school for the school.
IRS §501(C)(3) corporations shall be required to:
Provide the School Board with a copy of their IRS designation as a §501(C)(3) corporation to be acknowledged by the School Board as a §501(C)(3). If a §501(C)(3) cannot provide their IRS designation, they will be considered a school organization and must deposit their funds in the school accounts.
For those organizations that have a §501(C)(3) designation, provide a complete accounting of all fundraising events that were conducted in the name of the school. The accounting should include the amount of funds raised and a description and amount of what was purchased for the school with the funds raised in the name of the school. If the corporation plans to donate the funds to the school instead of purchasing items directly for the school, the cash should be donated to the school immediately after the fundraiser.
Booster clubs such as football, band, cheerleaders, etc. that earn money on a weekly basis should provide quarterly financial statements to the School Board instead of providing recaps of each fund raising event. The quarterly financial statements should include a summary, by fundraising event, of all monies collected and how the funds were disbursed. The disbursement of the funds should show the amount donated directly to the school and the amount and description of items purchased for the school.
OTHER FUNDS
Schools may have other fund accounts as part of their school activity funds. Sources of money for these funds may include vending machines, coffee fees, and teacher dues. These funds may only be used to benefit the faculty or school as a whole. Any purchases made from these funds should be done with caution, as restrictions apply to the expenditure of such funds. Any questions about purchases should be directed to the Superintendent or designee for clarification before the purchase is made.
Ref: La. Rev. Stat. Ann. §§17:81, 17:414.3, 51:224
Louisiana Handbook for School Administrators, Bulletin 741, Louisiana Department of Education
Board minutes, 10-17-06
Ouachita Parish School Board