A school district should consider the following questions to determine the proper method and fund in which activity funds should be accounted;
- Do other persons beside the students involved in the activity fund (teachers, sponsors, principals, administrators etc.) have access to activity fund? If so, this money should be accounted for in fund 461 – Campus Activity Funds (CAF).
Campus Activity Funds (CAF) is under the management of the campus principal. The revenue sources in this activity fund generally include vending machines, concessions, campus fundraisers and commissions from school pictures, publications, school stores, student transcripts, student i.d badges, car registrations and cell phone fines. This fund may also have sub-accounts for the library, grade level, or other groups not defined as student clubs or organizations.
Campus activity funds are considered public funds and must be expended for educational related purposes. The campus Principal may elect to use these funds on items such as staff appreciation breakfast or lunch in order to boost employee morale. Gifts to employees are not allowed. Excessive rewards to employees may appear to be gifts of public funds, which is prohibited by law. Employee incentives may be allowable and can be addressed on an as needed basis.
- Does activity fund financial decision rest solely with the students? If so, this money should be accounted for in fund 865 – Student Activity Funds (SAF) which serves as a agency account for student club or class funds.
Student Activity Funds (SAF) belongs to a bona fide chapter such as student groups or organizations. These funds do not belong to the district; however, the district must act as a trustee of the funds. These funds are accounted for in a trust fund group. The revenue sources of this fund typically include dues and fundraisers. All expenditures from this fund must be expended for the benefit of the students as approved by the students. The club or organization sponsor shall oversee the funds.
Expenditures from student activity funds (Fund 865) are not subject to purchasing and bid laws but must adhere to guidelines established and district regulations. The ultimate responsibility of this fund is also under the control of the campus principal.