A monthly report of cash receipts and disbursements to the activity fund should be prepared and reviewed by the activity fund supervisor and submitted to the school district office. Column headings in the report should include the following:
The activity fund bookkeeper should also prepare a monthly financial report for each student organization, showing the organization's cash receipts and disbursements. These reports should be reviewed by the activity fund supervisor and submitted to the student organization's sponsor. Each sponsor should then compare the activity fund bookkeeper's report with their own records. Any discrepancies should be resolved immediately. Additionally, the school finance office should periodically perform internal audits of the reports and supporting records.
Governmental Accounting Standards Board (GASB) Statement 34 made significant changes in financial reporting for all governments, including school districts. Chapters 4 and 5 discuss fully the reporting structure established by this accounting standard and its specific requirements, including the presentation of government-wide financial statements, fund financial statements, and the Required Supplementary Information. The purpose of the government-wide statements is to provide a broad overview of the governmental entity. Because fiduciary fund resources are not available for use by the government, fiduciary activities are excluded from the entity-wide financial statements. In accordance with the new reporting structure, fiduciary activities, including student activity funds, are reported only in the fund financial statements.
The impact of GASB Statement 34 on district and student activity funds is summarized below:
Many school districts and individual school sites derive significant revenue from enterprise activities and alternative sources: vending machines, school stores, class ring sales, and a wide variety of fundraising activities (magazine sales, candy sales, school pictures, etc.). In addition, large sums of money are generated through interscholastic sports in the form of gate receipts and other contributions. These revenues are typically associated with activities conducted at the school level that generate revenues to be used for the benefit of the school. In many instances, particular student organizations are in charge of one or more such enterprise activities. In other instances, the district administers the revenues for its own programs. If a student organization is in charge of an enterprise activity, the money should be accounted for through that organization's activity fund. If the district determines the use of the funds, the money should be accounted for with other district funds in the district's accounts. However, in all instances, the funds should be recorded in the district's books.
School districts and student groups are also increasingly benefited by affiliated organizations that support curricular, cocurricular, and extracurricular activities. Affiliated organizations include groups such as Parent-Teacher Associations (PTAs), Parent-Teacher Organizations (PTOs), school foundations, and athletic booster clubs. Contributions by these groups often include supplies, materials, equipment, and even school facilities, such as weight training rooms.
Specific board of education policies are needed to address these issues. In the case of activity funds derived from enterprise activities, board authorization to operate the activity is needed, and all funds should be accounted for in the district's books. In the case of revenue from affiliated organizations, board authorization to receive such funds is needed. In some cases, owing to the requirements of GASB Statement 39, affiliated organizations may be included in the financial statements of the school district as discretely presented component units. (See chapter 5 for a discussion of GASB Statement 39.) Whether or not affiliated organizations are included as component units, decisions regarding allocation of their contributions should be made on the basis of whether the curricular or cocurricular program is the primary beneficiary, as well as on the basis of fundamental fairness in resource allocation.
The following examples are illustrative of issues discussed in this section: