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REDBOOK TODAY’S BURNING QUESTIONS. SOME FAMILIAR QUOTES…

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Presentation on theme: "REDBOOK TODAY’S BURNING QUESTIONS. SOME FAMILIAR QUOTES…"— Presentation transcript:

1 REDBOOK TODAY’S BURNING QUESTIONS

2 SOME FAMILIAR QUOTES…

3 “THE PRINCIPAL SAID IT WAS OK”

4 “BUT IT BENEFITS THE STUDENTS”

5 “THAT’S THE WAY I’VE ALWAYS DONE IT”

6 I’VE LEARNED…

7 IT’S NOT “CAN I?” IT’S “HOW CAN I?”

8

9 Susan Barkley Division of District Support extension 4437

10 RESOURCES KDE website – Redbook page ges/Accounting-Procedures-for-School- Activity-Funds.aspx FAQs

11 WHAT ARE OPERATIONAL COSTS?

12 HOW CAN SCHOOL ACTIVITY FUNDS BE SPENT? School activity funds shall not be expended for operating costs (in old Redbook, too) Must exclusively benefit student clubs or organizations Cannot be used to support the district’s own programs (GAAP)

13 OPERATING EXPENDITURES Operating transactions are incurred in the course of the operating activities of the institution “It’s what we’re here to do” Anything supporting regular operations

14 Operating Expenditures Instructional Expenditures Expenditures for instruction are likely to be operational because that’s what the school is in the business to do: instruction

15 OPERATIONAL VS. DIRECT STUDENT BENEFIT Even if there is direct student benefit, you cannot use school activity funds to pay for expenditures which are operational in nature

16 DISTRICT OR STUDENT ACTIVITY?

17 PURPOSE OF THE REDBOOK Protect funds raised by students Protect students against funding responsibility

18 KEY PROVISIONS Item #1 on page 7 – “contributions and collections derived from school-sponsored fundraising activities shall be deposited in the school’s activity fund bank account” Item #5 on page 7 – “fundraising activities are to benefit students, so fundraisers to cover staff payroll and other operating costs are not permitted”

19 REQUIRED AT SCHOOL LEVEL Student Activity Funds - Contributions and collections derived from school-sponsored fundraising activities Fundraising by student clubs and student organizations To support student clubs and organizations Expended with input from student clubs and organizations

20 REQUIRED AT DISTRICT LEVEL Grants Day care fees Adult education fees Tuition fees Donations (unless board policy allows donations at the school level) Any funding source restricted to an expenditure disallowed by Redbook (except student fundraising)

21 Aside from those requirements…. …there are OPTIONS

22 SCHOOL ACTIVITY FUNDS Student Activity Funds District Activity Funds School Activity Funds = School Bank Account

23 STUDENT ACTIVITY Must be deposited at the school level Raised by student fundraising Expended with input from student groups DISTRICT ACTIVITY Can be deposited at the school or the district Raised by school/district or staff Expended with input from staff

24 SCHOOL BANK ACCOUNT School Activity Funds Subject to Redbook No operational expenditures DISTRICT BANK ACCOUNT District Funds Not subject to Redbook Any expenditure that meets “educational purpose” Narrow Allowability Increased Flexibility

25 SCHOOL FUNDS – ACCOUNTING RULES Reported as Agency Fund on district financial statements Cannot be used for district’s own programs Not included in per pupil expenditures

26 DISTRICT ACTIVITY FUNDS DEPOSITED IN DISTRICT BANK ACCOUNT Use special revenue fund if use is restricted, otherwise use general fund Project codes 7XXX available to track funds separately Can use fund 2, 21, or 22

27 TESTS Redbook test: Is the expenditure operational in nature? If so, can’t use school funds District test: Does the expenditure have an “educational purpose”? If so, you can use district funds

28 WHERE DO WE PUT THESE FUNDS? Gate receipts Picture sales Basketball team FFA Bookfair Lab fees Cheerleaders Elementary school fall festival School store

29 BEST PRACTICE? How are you handling district activity funds deposited in the district bank account? Submit your best practice on KDE website at px?view_id=0. px?view_id=0

30 CAN WE CHARGE STUDENT GROUPS FOR TRIPS?

31 ALLOWED Travel expense and meals for student members and sponsors Allowable expenditures that directly and solely benefit the student group

32 TEST What is “operational” as it relates to trips?

33 DIRECTLY AND SOLELY Driver salary and benefits Fuel Maintenance items directly and solely attributable to the group trip, not simply a share of general maintenance Must pass auditor scrutiny No depreciation Don’t simply use the cost per mile (SEEK)

34 CAN I TRANSFER MONEY TO THE DISTRICT?

35 SWEEPING FAQ #7 allows sweeping Intact Monthly

36 WHAT IF THEY CAN’T SPEND THE MONEY THEY ALREADY HAVE? Collected for operational purposes Funds raised without a specific purpose Auditors say I can’t transfer it

37 KEY PROVISIONS Item #1 on page 20 – “school activity funds are raised for a specific function or purpose during a specific fiscal year and must be used for that specific function during that period” Item #2 on page 20 – “due to timing…a school may have to carry forward funds from year to year”

38 Don’t raise funds simply to have money

39 FRAUD PREVENTION

40 #1 THING YOU SHOULD DO THAT YOU AREN’T DOING Bank Statement Review

41 ADDITIONAL QUESTIONS & DISCUSSION


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