FILE: JHB-R
Cf: JHB
SCHOOL ACTIVITY FUNDS MANAGEMENT REGULATIONS
DEFINITION AND PURPOSE OF SCHOOL ACTIVITY FUNDS
School activity funds are those monies collected by or on behalf of students, school based personnel, parents and/or parent groups for school or school-related purposes, raised in the name of or on behalf of the school, donated to the school by third parties, and/or granted or allotted to the school by the Iberville Parish School Board. Activity funds shall contribute to the educational experience of students and shall not conflict with (but rather add to or supplement) the instructional program and general welfare of the school.
RESPONSIBILITY FOR SCHOOL ACTIVITY FUNDS
School principals, upon their appointment as the chief administrator of a school, assume ultimate responsibility for all activity accounts in their school. The Iberville Parish School Board, through the Superintendent, shall hold the school principal fully accountable and personally liable for any shortages, deficits, or mismanagement of any funds within their control and purview.
All School Board personnel are required to comply with all adopted School Board policies, regulations of the Board of Elementary and Secondary Education (BESE), Louisiana Revised Statutes, and the Code of Ethics for Public Employees. The principal is responsible for ensuring that all personnel under his/her direction comply with said requirements and laws. Questions relative to this should be directed to the Superintendent or the Business Manager.
All principals, assistant principals and school bookkeepers are required to annually be provided a copy of this document, and sign an acknowledgment at the beginning of the school year, stating that they have received a copy of this document, and that they agree to abide by the regulations, policies, principles and practices contained herein, as well as those of the Iberville Parish School Board and other regulatory and statutory authority. Said letters are to be kept on file by the Business Manager.
The Business Manager is available to consult with and provide assistance to both new and current principals on proper and prudent management of funds, and interpretation of rules, regulations, guidelines, polices and practices. The Accounting Supervisor will train all new school bookkeepers on the use of the computerized school activity fund accounting package, and is available for consultation with all school bookkeepers relative to school activity fund accounting procedures and problems.
ACTIVITY FUND USE AUTHORITY
Funds raised by school, club and parent organizations, or allotted by the School Board for specific purposes, are considered restricted funds, meaning that they cannot be used for any other purpose(s) other than that intended by the group, sponsor or donor. The principal is responsible for seeing that such funds are not used for any reason other than their intended purpose. Certain funds are considered unrestricted funds, meaning that they can be used for any legal purpose for the enhancement, betterment or benefit of the school, its students, and/or its operations. Examples of such unrestricted funds include the general school allotment and funds raised through the sale of concessions.
All expenditures made or to be made from school activity funds must be approved by the principal. Prior to the issuance of a purchase order or the actual disbursement of funds, the principal is to ensure that the account has sufficient funds available to cover said request. If there are insufficient funds and the principal intends to cover the shortage with unrestricted funds, a transfer of funds must be made to the account in question. The principal's signature on a purchase order shall imply that he believes in good faith that sufficient funds are or will be available to cover the expenditure.
PROHIBITED USES OF SCHOOL ACTIVITY FUNDS
The following are prohibited uses of school activity funds:
- Lending money to faculty, staff, students, parents, or other persons for any reason or purpose.
- Use of funds for luncheons, gifts, flowers, etc. which are personal in nature and do not benefit the school or student body as a whole. It is permissible to establish a fund to collect monies from individuals for these purposes, and expend funds therefrom. It is NOT permissible to use restricted or unrestricted funds for these purposes.
- Additional payments or supplements to School Board employees for services rendered.
- Cashing of any and all checks.
- The purchase of alcoholic beverages.
- The payment of any personal obligation of any faculty or staff member, student, or parent.
Further, Article VII, Section 14(A) of the Louisiana Constitution of 1974, as amended, states in part "the funds, credit, property, or things of value of the state or any political subdivision [which includes public schools] shall not be loaned, pledged, or donated to or for any person, association, or corporation, public or private". This means that not just school cash funds, but School Board or school owned property or equipment may not be loaned to any individual or group for personal purposes or uses.
PERSONAL TRANSACTIONS
Under no circumstances shall personal transactions be commingled with school activity accounts. Personal transactions shall include, but not be limited to, loans, cashing checks, purchasing stamps from the schools, and ordering and paying for merchandise or equipment for personal use through the school or the School Board.
ACTIVITY FUND INDEBTEDNESS AND PROBLEMS
No debt may be incurred by any school activity fund which cannot be liquidated within one year unless prior written permission is obtained from the Superintendent. All school activity fund obligations must be paid on a timely basis to prevent the incurring of late charges. Habitually late payments are a poor reflection on the School Board, and may be considered willful neglect of duty on the part of the principal.
The Principal shall report the following violations immediately to the Superintendent:
- Shortage of funds due to suspected theft or embezzlement.
- Disbursements for personal purposes.
- Apparent shortage of funds.
- Theft or unauthorized use of property.
- Indebtedness or obligations which will not be liquidated before the end of the school year.
- Intentional disregard by faculty or staff members for proper accounting procedures, practices and policies.
TIMELY DEPOSIT OF FUNDS ON HAND
Deposits of monies on hand should be made daily. Schools may keep monies on hand in their administrative offices in an amount necessary to conduct routine daily operations, provided such remaining funds are secured in the school's safe overnight. In NO instances are monies to be brought home by the principal or any staff member, nor left on the school site over a weekend or a holiday. If any person brings home school funds in contradiction to this policy, he/she will become personally responsible and liable for the loss, misuse, or theft of any such funds.
All checks received by the school should be restrictively endorsed (i.e., For Deposit Only) as soon as possible after they are received. Deposits must be made INTACT, meaning that the entire amount must be deposited, and that no cash may be withdrawn from the deposit. All withdrawals must be evidenced by a check, except for bank debit memos for deposit slips, service charges, etc.
Schools are permitted to keep an imprest petty cash fund on hand for disbursement for small items. Unless permission has been obtained from the Superintendent to keep a larger amount on hand, petty cash funds may not exceed $50 for elementary schools and $100 for middle and high schools.
Ref: La. Rev. Stat. Ann. §17:81
Board minutes, 8-25-97
Iberville Parish School Board