YOUR ALLY
What You Need to Know about Managing Activity Funds
M BY LANCE CAIN ATPE Staff Attorney
oney may not buy happiness—but if you are not careful in handling activity funds for your school, it can lead to a big headache. Handling someone else’s money can feel like a daunting task, especially if you lack experience or training. But handling activity funds is a necessary part of certain campus jobs. Activity funds are collected by a school through fundraising, student activity fees, and other school-related activities. The money is held in trust by the school and used to benefit the school or promote student activities.
an auditor is responsible for yearly audits of each activity fund. If you find yourself in charge of an activity fund, lay the groundwork for success by asking for training in basic accounting procedures (collecting, handling, depositing, and documenting) and limitations on fund uses. It is also a good idea to familiarize yourself with applicable district policies and handbooks. Once you take control of the fund, follow procedures closely and keep careful documentation. There may be numerous forms involved, but do not be intimidated. Having a record of when and where the money was collected, deposited, and spent can There are two types of activity funds: prevent future challenges. Don’t be afraid to ask for 1) Student activity funds (SAF) are generated by help. Because money is involved, it is always better individual student groups rather than the campus. to clarify than to assume. Decisions on how to spend SAFs are made by the Prior to any fundraising, verify that all permisstudents involved. Clubs relating to specific ac- sion forms are submitted and approved. During tivities such as cheerleading, specific classes such fundraising activities, maintain an abundance as journalism, or student of the proper forms/regroups such as National ceipts, carefully docuHonor Society are comment each transaction, mon examples. and secure all cash and 2) Campus activity checks. After fundraisCONSEQUENCES FOR funds (CAF) are raised ing, make sure all funds MISHANDLING OR MISUSING by the school or donatare properly and promptACTIVITY FUNDS CAN BE SEVERE ly deposited pursuant to ed to the school and are AND IMPACT YOUR JOB OR considered by the Texas your district’s policies. Education Agency to be It is common for fundCERTIFICATE AND INVOLVE district general funds. raising activities to occur CRIMINAL CHARGES. Expenditures of these outside of normal school funds should align with hours. Therefore, it is imapplicable state law and local policy. A campus may portant to know what to do with the money ahead have several CAFs at once. A CAF may be gener- of time because there may not be anyone available al (e.g., a principal’s account) or benefit a specific to ask. Unless you receive specific permission, group, like a library account or third grade account. never leave the money in your classroom, take the Responsibility for activity funds may fall upon money home, deposit it into an unauthorized acnumerous school employees. Having multiple in- count, or otherwise leave it unsecured. Unless it dividuals oversee such accounts reduces the risk is specifically authorized in your local policy, nevof mistakes and fraud. The club sponsor may be er mix school funds with personal bank or digital responsible for collections, deposits, and record wallet accounts—this practice may immediately keeping. A campus secretary or bookkeeper may raise concerns about possible theft or embezzlebe asked to monitor activities, handle receipts, and ment of funds. otherwise assist the sponsor. Usually, the campus If any money goes missing during or after a principal or designee is ultimately responsible for fundraiser, report it immediately. You will always safeguarding and accounting of all funds. Finally, continued on page 38 ATPE NEWS 13
