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Policy 4030 - School Activity Funds

The purpose of this policy is to establish parameters for the accountability of school activity funds.

Policy Document

I. Policy Statement

The Board of Education of Howard County recognizes that schools receive financial support for school-related activities from the community, parent organizations, and students. Since school activity funds are public funds entrusted to the school for the benefit of the student body, the Board requires that these funds be managed in a way that is both fiscally and educationally responsible.

II. Purpose

The purpose of this policy is to establish parameters for the accountability of school activity funds.

III. Definitions

Within the context of this policy, the following definitions apply:

  1. Fiduciary Agent – The person responsible for overseeing school activity funds in accordance with Generally Accepted Accounting Principles (GAAP) and Board procedures and for ensuring that the use of these funds is for education-related purposes.

  2. School Activity Funds – All cash funds held in the name of a school including fundraising proceeds, cash donations, funds transferred from the Board, and funds provided to a school not allocated through the Board budget.

IV. Standards

  1. Each school will use its school activity funds for the benefit of the students currently in the school unless other purposes are specifically designated by a donor.

  2. School activity funds will be accounted for in a manner commensurate with GAAP as defined in the Manual of Policies and Procedures for School Activity Funds.

  3. School activity funds will only be spent for education-related purposes as approved by the principal, including:

    1. Approved expenditures for improvements to real property in accordance with Policy 6060 - Community Improvements to School Sites or School Facilities.

    2. Approved technology expenditures.

    3. Books/media equipment.

    4. Co-Curricular activities (e.g., school trips).

    5. Compensation for services.

    6. Defraying costs or charges for students.

    7. Equipment.

    8. Extra-curricular activities.

    9. Materials of Instruction.

    10. Meeting expenses including refreshments.

    11. Staff development expenses.

    12. Student recognition, awards, or incentives.

    13. Student snacks.

    14. Supplies.

  4. Expenditures for purposes other than those listed in Section IV.C. above require the advance approval of the Chief Academic Officer/Designee.

  5. School activity funds other than those listed in Section IV.C. above will not be used to benefit individual staff members or individual students unless the purpose is education-related.

  6. The Manual of Policies and Procedures for School Activity Funds will include processes for the handling of these funds and the designation of individuals or offices responsible for those processes.

  7. A committee for School Activity Funds will serve as an advisory group to the Director of Finance regarding school activity funds.

  8. All purchases must comply with Policy 4050 - Procurement of Goods and/or Services.

V. Responsibilities

  1. The Superintendent/Designee will ensure that the fiduciary responsibilities for all schools are met.

  2. The school principal is the fiduciary agent for school activity funds and as such will maintain these funds in accordance with GAAP and Board procedures and for ensuring these funds are used for education-related purposes.

VI. Delegation of Authority

The Superintendent is authorized to develop appropriate procedures to implement this policy.

VII. References

C. Relevant Data Sources

  • HCPSS Annual Fundraising & Donations Report

  • HCPSS Annual School Funds Report

  • HCPSS School Activity Fund Internal Audit Reports

D. Other

  • Generally Accepted Accounting Principles (GAAP)

  • Manual of Policies and Procedures for School Activity Funds

VIII. History

ADOPTED: January 27, 2005

REVIEWED:

MODIFIED:

REVISED: April 12, 2012

EFFECTIVE: July 1, 2012