School Name
Activity Fund Regulations
B, E
Sponsor Acknowledgment
O
Purchase Initiation
O.4 & 5 & 6
Vendor Forms
O.4
Activity Fund Ticket Sheet
L
Student Receipt Roster
O.1
Ringwood Public School
AF manual
sponsor responsibility.jpeg
purchase order
vendor form.jpeg
ticket balance sheet
Purple Student Receipt Roster
Asher
Public
School
AF Procedures
AF Acknowledgement
AF Purchase requisition
Noncommercial Vendor
BALANCE SHEET

I. Current Design and Process

Comparison of the above schools show both a comprehensive and diligent effort to outline in specific detail procedures as they relate to state statutes that govern Activity Funds as outlined in 210:25-5-5-13 (OCAS Technical Assistance Document, pg. 121); as well as, the Larry Lewis book, "Opening, Slightly, the Door...".

E & O.11. Deposits are made according to amounts and date of collections
  • Money is to be deposited at the end of the schools day; specifically, "Deposits are to be made no later than the next business day after receipt unless the deposits total for a day less than $100.00. Weekly deposits are required regardless of the fact that less than $100.00 was collected during the week" (Lewis, 2008, pg. 11).
  • No money is to be left in classrooms.
  • Direct delegation of duties are outlined.

O.1. Information is recorded on pre-numbered receipts to process receipt of funds; specifically, "Secretaries commonly receipt cash and checks submitted by sponsors, teachers, students, and parents, and then properly record the funds received in receipts books. District procedures probably will require money be receipted at the actual time of receipt, rather than placing the funds aside until a less stressful time. A typical receipt will require the one receiving the funds to write the date the money is received. the name of the person giving the funds to the secretary, the amount that is received, the purpose for the funds, the appropriate account number that is to received the funds, any designation by number or name of the school site, and the secretary's signature" (Lewis, 2008, pg. 13).

L. "Receipts for collections shall be given by the School Activity Fund Custodian. Pre-numbered tickets should be used for admissions in order to establish internal control. All tickets not sold by the gate keeper should be accounted for at the end of each event and a written reconciliation made of tickets sold to actual revenues collected. Reconciliation documents should be filed in date order as part of the documentation for the School Activity Fund" (OCAS Technical Assistance Document, p. 121). Lewis writes, "All tickets sold by the gatekeeper should be accounted for at the end of each event..." (pg. 12). He continues, "Tickets not sold are to be accounted for at the end of each event, with a written reconciliation made of tickets sold to actual revenues collected" (pg. 12).


O.4. Requisition or purchase request is present to the School Activity Fund custodian or their designee (OCAS Technical Assistance Document, pg. 122). According to Lewis (2008, pg. 8), "The Board approves policies that govern requests for fundraisers; the collection, deposit, and spending process of activity fund money; the forms to be completed to verify financial information; the verification of receipt of goods or services for which payment is sought, etc."

O.5 "Purchase order is then approved by purchasing agent and the order is placed with the vendor" (OCAS Technical Assistance Document, pg. 123).

O.6 "Checks will be issued only when invoice or supporting document and merchandise is received" (OCAS Technical Assistance Document, pg. 123).

B. The Board of Education oversees the Activity Fund as stipulated by 70 O.S. Section 5-129 which states, "The board of education of each school district shall exercise control over all funds on hand or hereafter received or collected as herein provided, from student or other extracurricular activities conducted on the school district'" (Lewis, 2008, pg. 7). In addition fundraisers shall be approved; specifically, "At the beginning of each fiscal year and at any time thereafter when the need arises, the board approves every activity fund, every fundraising activity, and the purposes for which the monies collected by a fundraiser for a particular account can be expended.....The purpose of this requirement is to have general control over various district fundraising activities....ideas need to be submitted to the administration with a request for fundraisers.....board approval of the purpose of the fundraiser should ensure the money is spent for the purchase for which it was raised, and that, for example, money raised for the board approved purpose of buying new microscopes for science labs is not spent to purchase footballs" (Lewis, 2008, pg. 7).


II. Evaluation

Procedures for both schools reflect both state and LEA guidelines. While written guidelines, handbooks, and documents provide direction, without strict, disciplined administration of the guidelines, well intended actions can falter. It is only with much oversight and routine management can and does the activity fund stay in compliance. Training and education do support correct handling of activity funds. Training and education must be ongoing, however. After reviewing just the few documents above, it does appear that efforts to avoid many of potential trouble spots are addressed. Step by step procedures with foresight included help to divert potential problems or errors. In my opinion, it is not the aspect of human error that plagues the mismanagement of activity funds, it is intentional misuse. I have heard on more than one occasion, that it is just as easy to do it the right way, as it is to do it the wrong way. This suggests, even, the potential for lazy, careless work which can prove just as detrimental. Central office personnel must be willing to work very hard and with great levels of responsibility to keep the activity fund and those responsible for out of trouble.


III. Forms

Activity Fund Custodians not only have to ensure everything is done procedurally correct from the perspective of the many teachers, students, and administrates that oversee the events, they have to make sure that everything balances. Most schools use an accounting software that is approved by OCAS. Knowledge of basic accounting principles are helpful because of the fact that when dealing with money everything must balance. Debits and credits must match up. To do this, monthly balancing or reconciling must be done. The AF custodian runs off:

1. The Custodian's Analysis that shows all the sub accounts
2. The Receipt Register for the month (and includes any outstanding receipts)
3. The Check Register for the month
4. The Outstanding Check Register for the month
5. The Cash Balances Report
6. Register the monthly checks
7. Clear the monthly checks

The AF Custodian balances monthly with the bank statement and the accounting software the school uses. This task can be challenging because reconciling means balancing all the checks written out of the many sub accounts, all of the receipts written and posted, all of the deposits made, any insufficient checks for the month, and interest accrued for the month that has to be posted into the accounting software program. Errors can and do occur; and, when they do, the AF Custodian must find the error and correct it. This may mean spending as little as ten minutes finding an obvious error or it can mean hours of hunting and searching for what usually is a very simple oversight. Below is a form that can be used when out of balance. By following the steps below, many times the error will be found quickly.





BALANCING BANK STATEMENTS ACTIVITY FUND
WHEN OUT OF BALANCE

REPORTS NEED TO BE RUN NOW, DO NOT USE OLD REPORTS.
  • RUN PRIOR MONTH CASH BALANCES
  • RUN PRIOR MONTH CUSTODIANS ANALYSIS
  • RUN OUTSTANDING WARRANTS FOR PRIOR MONTH
CHECK TO MAKE SURE YOU ARE IN BALANCE FOR THE PRIOR MONTH . IT MUST BE IN BALANCE BEFORE YOU WILL BE ABLE TO BALANCE THIS MONTH. IF YOU ARE IN BALANCE WITH THE PRIOR MONTH PROCEED:

  • RUN THE CURRENT MONTH CASH BALANCES
  • RUN THE CURRENT MONTH CUSTODIAN ANALYSIS
  • RUN THE OUTSTANDING WARRANTS FOR THE CURRENT MONTH
  • RUN YOUR PAYMENT CLEARING REGISTER FOR THE CURRENT MONTH






IV. Miscellaneous - Evidence of Board Approval for Transfer of Funds


While this does not occur very often, it does occur. In this particular case, athletics sub account received 20% of the elementary homecoming proceeds, i.e. gate. Asher Little League also received 20% (not mentioned here). As long as the transaction is approved by the Board, it is legal. The transfer of funds is generally made by doing an adjusting entry.

Transfer of Monies Must Be Board Approved


Board MeetingMarch, 2006Asher Public School
"Price asked for a motion to approve a transfer, i.e. elementary homecoming proceeds to athletics. Fleming made a motion. Fowler seconded the motion. Price yes, Fowler yes, Stevens yes, and Fleming yes.














Resources:

Activity Fund Handbook - State Department of Education OCAS Division