1. Accounting for Kentucky School Activity Funds “Redbook” Effective July 1, 2013 Presented by : Lanny White, CPA September 21, 2016

2. Introduction  Purpose – To present the correct procedures for managing school activity funds and for external support/booster organizations  Objective – Participants to obtain working knowledge of managing school activity funds and external support/booster organizations  Regulated by Kentucky Administrative Regulation (KAR) and the Kentucky Revised Statues (KRS)  School activities are provided by the local board to enrich the students educational experience

3. Local Board Responsibilities  Control and manage schools and their activity funds  Bidding for purchases (not a school or SBDM function)  Entering into leases (not a school or SBDM function)  Designate depositories and incur debt  Regulate investment of excess cash  Approve school –wide fund-raising activities (Form F-SA-2A)  Adopt policies regarding activity funds relative to SBDM

4. Local Board Responsibilities (Continued)  Withhold and pay taxes and other deductions; issue W-2’s, 1099’s, etc.  Regulate expense reimbursement to employees  Deficit balances in activity funds  Receive any gifts, grants or devices to benefit the school  Approve school dues and fees/charges and shall stay in force until removed by board resolution and used for set purpose  Ensure activities do not conflict with implementation of Title IX responsibilities of district

5. Superintendent Responsibilities  Hire employees, including temporary and contract labor  Enforces all board policies and administrative procedures of the district  Submits activity fund budgets to the board with assistance from the district finance officer  Approves magazine sales  Ensure activities do not conflict with implementation of Title IX responsibilities of district

6. SBDM Council (Principal, if no Council)  Make sure school activity fund policies are consistent with board policies  Determine use of school general activity funds from bookstore, snack and beverage sales and other office activity funds not raised by a school organization for a specific purpose  Profits must be used for benefit of students and not for the school’s physical operating expense, which is a local board responsibility  Employee profits/vending must be separate and can be used as directed by employees

7. SBDM Council (Principal, if no Council) (Continued)  Approve school general/office activity fund budgets, participate in creation of bid specifications and assist in formulation of policies and procedures on activity funds  Oversee the expenditure of instructional funds from school fees/dues and other funds not raised for a specific purpose  Ensure compliance with Title IX issues as they relate to fund-raising and expenditures

8. Principal  Act as administrator of school activity funds  Assume role of SBDM council if none exists  Ensures board/council policies are followed  Approve/sign activity fund documentation  Review unopened bank statements – signature/date after review  Appoint a designee to act in absence of principal  Select responsible and trustworthy sponsors to oversee activity funds

9. Principal (Continued)  Obtain board approval for school-wide fund raising activities and approve other fund-raisers  Prepare and submit annual Internal Account Budget to district finance officer (F-SA-3, F-SA-4A/B)  Review and submit monthly and annual financial reports to district finance officer (F-SA-15A/15B)  Prepare with school treasurer a listing of all donations to the school for the local board

10. Principal (Continued)  Obtain required information from support/booster organizations for reporting and monitoring:  Names of officers – beginning of school year  Budgets, revenue/expense, normally due within first 30 days of school year  Annual report, due July 15 th – end of year  Ensure compliance with Title IX issues as they relate to fund-raising and expenditures

11. School Treasurer  Record transactions for the Internal Account and school activity funds (receipts/disbursements)  Maintain financial records (receipts, disbursements, supporting documentation, accounting system that captures the activity fund’s assets and liabilities and changes thereto) (Form F-SA-15A/15B)  Reconcile cash bank accounts to financial records  Prepare with the principal a listing of all donations to the school for the local board

12. Clubs/Activities Sponsor  Determine use of club/activity funds subject to board policy  Help elect officers  Obtain approval for fund-raising from principal or designee (Form F-SA-2A)  Publicize fund-raising activities in advance with purpose and intended use of profits  Ensure funds are expended in accordance with purpose and intended use only

13. Clubs/Activities Sponsor (Continued)  Use Fund-raiser Worksheet to document profits (Form F-SA-2B)  Follow guidelines for handling cash  Submit annual budget to principal (Form F-SA-4A)  Ensure compliance with Title IX issues as they relate to fund-raising and expenditures

14. Receipts – General Guidelines  One treasurer for school activity funds (bond required), cannot be a student  One interest-bearing checking account at board approved bank – exception: charitable gaming  Two signatures on checks (principal/designee and treasurer)  Activity fund ledger for each activity and in total  Ledger/checkbook balance should be maintained daily (Forms F-SA-11, F-SA-12)  Activity fund reconciled to bank monthly, including investments (Form F-SA-15A)

15. Receipts – General Guidelines (Continued)  All money given to treasurer daily  Treasurer shall never collect money directly from students or parents  Treasurer shall not open mail  Checks received in the mail shall be receipted (Form F-SA-6) and submitted to the treasurer  Treasurer and person turning in the money shall jointly count the money  Treasurer must use pre-numbered receipts and account for them  Daily deposits are best, but may keep in secure location until $100 or at least weekly

16. Receipts – General Guidelines (Continued)  After hours collections shall be placed in a night depository, night drop or locked school safe and processed for deposit the next business day by the treasurer  Deposit slip examined by someone to verify amount agrees to the ledger and stamped by bank (performed by an employee other than one preparing the deposit; i.e., check receipt sequence for completeness)  Discrepancies reported to the district’s finance officer  Teachers/sponsors use Multiple receipt form (Form F-SA-6) or pre-numbered receipts  Students third grade and above must sign the Multiple Receipt Form

17. Receipts – General Guidelines (Continued)  Treasurer restrictively endorse checks “ For Deposit Only ” upon receipt  Names and amounts of checks listed on deposit slips or copy of check with receipt numbers on the deposit slip  Do not cash personal checks  Record receipts in the accounting system (Forms F-SA-11, F-SA-12)  Handling of returned checks – fees charged – negative receipts

18. Receipts – General Guidelines (Continued)  Investments to be in accordance with board policy with excess cash invested  Reconcile the bank account monthly – should include investments (Form F- SA-15A)  Principal receives unopened bank statements for review  Schools and district employees cannot borrow or lend monies  No grant monies, day care fees, adult education fees or tuition fees shall be deposited in the school activity funds as this should be handled by the central office  Student fees and charges shall be adopted by the local board and shall remain until removed by the board

19. Receipts – General Guidelines (Continued)  Student fees shall be used for the approved purpose  Investments will be shown on the financial reports  No personal activity allowed (employees, students, etc.)  Electronic receipts should be addressed by detailed policies and procedures

20. Segregation of Duties  Appendix A – provides examples of suggested structures for internal control purposes  Redbook suggests ways to segregate duties using three people in the areas of receipts, bills and bank reconciliation  One person should not have complete access/control over a cash receipt/disbursement transaction  Internal controls over receipts:  receipt log compared to deposit  jointly counting cash receipts

21. Segregation of Duties (Continued)  Internal controls over disbursements:  purchase orders  invoices  packing slip  Principal receives unopened bank statement  Procedures for bank account reconciliations preparation and review  Appendix D provides recommended report review procedures for the principal, treasurer and district finance officer

22. Fund-raising  Fund-raising is an organized activity of soliciting and collecting money for the school activities and shall be maintained in the school activity accounts  The local board will regulate/approve school-wide fund-raising activities (Form F-SA-2A)  The principal or designee shall approve all other fund-raisers including the proposed use (F-SA-2A)  Fund-raising activities should make a profit or have an important instructional purpose  Fund-raising activities are to benefit students and should not be used to cover staff payroll or staff accounts or other operating cost of the school

23. Fund-raising (Continued)  Fund-raising proceeds MUST benefit the entire group of students involved, regardless of participation in the fund-raising event  Fund-raisers cannot be tracked by individual students  All fund-raisers must have Fund-raiser Worksheet completed (Form F-SA- 2B) and complete the form within one week of the completion of the fund- raising event and submit to the principal for review  Reasonable profits on concessions, vending machine sales and bookstore sales shall be verified on Inventory Control Worksheet (Form F-SA-5) and should have different folks collecting cash and completing the form

24. Fund-raising (Continued)  Sales from concessions/bookstores/etc, should use the Form F-SA-17 when giving receipts to the treasurer and should have different folks collecting cash and completing the form  Magazine sales must be approved in writing by superintendent and filed with county clerk

25. Ticket Sales  Pre-numbered tickets must be used for ALL events charging admission  Tickets kept in secure location and rotate/change colors for events  Must use Requisition and Report of Ticket Sales form which includes beginning and ending ticket numbers, signature of person in charge, number of tickets sold, money collected and reconciliation  Suggest a ticket seller and ticket taker (different people)  Principal or treasurer shall not be in charge of sales and treasurer cannot sell tickets

26. Ticket Sales  Ticket taker tears ticket in half and retains the one half  Tickets sold are reconciled to the retained halves  Reconcile the number of tickets collected with number of tickets sold along with cash collected (Form F-SA-1) before giving the form to the treasurer  Treasurer/in-charge reconcile activity  cash and tickets (verify ticket sequence used and all tickets are accounted for and returned)  Treasurer should issue a receipt to the ticket in-charge and attached a receipt copy to the form  Money collected shall be deposited promptly and if after hours secured in a night depository, night drop or a school safe and processed the next business day

27. Ticket Sales  A change fund shall be initiated with a check written to the Athletic Director or responsible person  Change fund shall be kept in secure location between events and not comingled with gate or concession receipts

28. Donations  Donations are gifts of real or personal property to the school from outside sources for the use at the school or students  Donations are to be received by the local boards and comply with donor restrictions  Local board policy may allow schools to receive gifts over a set threshold  If the policy allows the school to receive donations then the principal/treasurer shall prepare a listing of all donations to the school for the local board annually  The Donation Acceptance form (Form F-SA-18) shall be completed for all donations and a donation acknowledgement should be sent to the donor

29. Donations (Continued)  Restricted donations received by the school shall be maintained in a separate activity fund to monitor compliance  Unrestricted donations for general use shall be recorded in the general activity fund which has oversight by the principal/SBDM council and must be used to support student activities  Donated equipment or property will become district property and the district finance officer should be notified to ensure it is included on the district’s inventory listing

30. Transfers  Can only occur with completed Transfer Form (Form F-SA-10)  Sponsor of remitting school activity and principal shall sign form along with an explanation of the transfer  Transfers from the local board should be monitored to ensure restrictions are met and documented  No transfers or reimbursements are allow from the school activity funds to external support/booster organizations or staff accounts

31. Fixed Assets  Fixed assets are real or personal property with an estimated life of more than one year and cost threshold established by the local board (KDE recommends $5,000)  KDE Capital Asset Guide can be used as an reference tool  Workstations/laptops are not required to be capitalized, unless they meet the District’s threshold, but should be tracked for control purposes  Any purchases/donation of fixed assets for school activities should be reported to the district finance officer  The property shall become the district’s asset and will be maintained by the district

32. School Banks  School Banks:  Supporters are key components– local board, principal, sponsor  Financial supporter – bank or credit union  Structure depends type of financial supporter  School bank branch or nonbank branch(financial literacy program)  Nonbank branch has only Bank employees – educational purpose  School bank branch is an actual bank branch with students operating the full service bank branch  A written agreement obtain between Bank and local board  Establish daily reconciling procedures of cash activity

33. School Banks (Continued)  School Banks:  Must obtain written permission forms from the parent or guardian of each student participating in the program  Parents must agree to be responsible for any financial obligations incurred by the student  Sponsor cannot open personal accounts  Never accepts school activity fund monies  The school bank is not included in the district’s annual financial audit

34. Charitable Gaming  Charitable Gaming as fund-raisers involve games of chance for a charitable purpose (ie. Bingo, raffles such as split the pot, pull tabs)  Does not include events that are based on skill such as dart throw, basketball shot, golf putt, bean bag toss, duck pond, cake walks(all players win equal prize) or auctions  Department of Charitable Gaming regulates these activities KRS 238.535  Applies to district, school, clubs and external support/booster organizations  Gaming activities must have a checking account used only for gaming if an exemption or a license is required

35. Charitable Gaming (Continued)  Gaming regulations:  A school or external support /booster organization has 3 or less raffles per calendar year and gross receipts of $150 or less on each has no filing requirement.  Gaming exceeding the above amounts shall have a gaming license or exemption: KRS.238.535, ocg.ky.gov  Exemption applies to bingo, raffles, charity fund-raising events and gross receipts do not exceed $25,000 per calendar year  Should gross receipts exceed $25,000 per calendar year a license is required

36. Charitable Gaming (Continued)  Gaming regulations:  Gaming license requires quarterly reporting to the Office of Charitable Gaming and a fee is paid on gross receipts  Exemptions still file annually gross receipts and expenses  A school exemption/license does not cover an external support/booster organization and an external support/booster organization’s exemption/license does not apply to school activities  The Department of Charitable Gaming offers training courses and a web site that will provide guidance

37. Procurement/Expenditures  Bidding and purchasing is a local board’s responsibility – Kentucky Revised Statutes, Kentucky Administrative Regulations  Schools can purchase off approved bid list (local, cooperatives, GSA, state, etc.)  Items normally subject to bidding requirements:  instructional materials  class rings, yearbooks, school pictures, playground equipment  athletic supplies/equipment  band equipment/uniforms  items for resale (concessions, colas, bookstore, shirts, etc.)

38. Procurement/Expenditures (Continued)  Cash awards, gift cards, or prepaid cards to students are not allowed  Cannot purchase personal items even with reimbursement agreements  Only staff accounts (staff vending) may be used for staff gifts, dinners, etc.  Payments to support/booster organizations are not allowed  No loans to employees, parents, students or sponsors for any reason  No payment of individual’s organization dues/fees that does not provide a direct benefit to the students

39. Procurement/Expenditures (Continued)  No extra compensation or bonuses to district employee (cash and noncash)  No alcoholic beverages, tobacco products, controlled substances, firearms and weapons  No purchase that benefits the adult sponsors or district employees and not the students  No books, magazines, memberships that do not benefit the students  No professional development or staff development allowed  Cannot use activity funds to pay for routine operating expenses, renovations or maintenance of school building/facilities/grounds, furniture for administrative offices

40. Procurement/Expenditures (Continued)  Cannot use activity funds for attendance incentives unless instructional in nature (instructional field trips, books, etc.)  Attendance incentives such as tee-shirts, parties and non-instructional field trips shall be funded by non-tax, non-board controlled funds such as donations or support /booster organizations and local businesses  Student-generated funds should provide student incentives for scholarship, athletics, specialized area performance, school spirit and similar achievements

41. Procurement/Expenditures (Continued)  Some examples of allowable cost  emblems of membership for students  awards such as merit certificates, trophies, plaques for students  equipment, supplies and material for student organizations  approved fund-raiser expenditures  entry fees/cost with competitions and meetings of student groups  parent/student functions such as open house, back to school bash, parent night or orientations  cost of trainings which are required for sponsors/coaches  travel expenses and meals for students and adult sponsors during official school trips  memberships in related organizations for student groups  charitable contributions/donations made with funds collected specifically for that purpose  other allowable expenditures approved by the members of the student group or by the principal and SBDM council for accounts without student involvement  Only checks to the in-charge of petty cash for change or petty cash replenishment

42. Procurement/Expenditures (Continued)  Schools do not pay sales tax nor do they reimburse sales tax on purchases by employees (hotels/restaurants are exceptions)  Booster clubs/PTO/PTA cannot use school’s tax-exempt status  Use purchase orders to initiate a purchase, signed by sponsor and principal (Form F-SA-7)  Must have supporting documentation for all expenditures (purchase order/packing slip/vendor invoice/standard invoice) (Form F-SA-8) and treasurer shall review for completeness of these documents before a check is written

43. Procurement/Expenditures (Continued)  Use pre-numbered checks and mail same day as written  Signature stamps are not allowed for indicating approval of school activity  Treasurer shall be bonded  Invoices should be marked “ Paid ” with date and check number  Deface voided checks, negative expense and no checks made to Cash/ School/Bank  File by month in check numerical sequence order and posted to the Principal’s Combined Activity Fund Ledger (Form F-SA-11) and the Individual Activity Account Ledger (Form F-SA-12)

44. Procurement/Expenditures (Continued)  Reimbursements or refunds to students should use Form F-SA-14 requiring students to sign  Fixed assets – including technology – capitalize district policy, contact district financial officer  Electronic payments should be addressed by detailed policies and procedures

45. Title IX  Title IX of the Education Amendments of 1972 is a federal law that prohibits sex discrimination in education programs that receive federal funds  It is the responsibility of all district staff, volunteers and external support/booster organizations to report purchases from any source for Title IX compliance  All school activity fund expenditures for athletics must be reported to the district staff responsible for Title IX reporting and monitoring of compliance  Appoint district staff to ensure appropriate administrative oversight of support/booster activities and meet with these organizations periodically to ensure equitable funding of boy’s and girl’s athletics

46. Cash Advances and Travel Reimbursements  Club sponsors/teachers may receive a cash advance only if students are participating and expenses are supported by Expense Report with unused cash being returned (Form F-SA-9)  Completed form and support shall be returned by the close of the next business day after the trip  Travel reimbursements based on travel voucher must follow board policies and employees can be reimbursed tax on food and hotel costs (Form F-SA-16)  Travel vouchers shall be submitted within one week of the travel  District and school administrators cannot be reimbursed expenses for travel from the activity fund unless students are on the trip

47. Payment for Services  Determination of worker status must be made by the principal and approved by the district finance officer as to whether the individual performing the services as a district employee or independent contractor  The Internal Revenue Service (IRS) has developed a list of 20 common law factor to aid in the determination of employee or independent contractor  Determined on a job-by-job basis

48. Payment for Services (Continued)  Non-district employees – paid by check from activity fund with standard invoice signed by payee; must keep track of payments to submit to the district finance officer for 1099’s (Form F-SA-8)  District employees – paid through MUNIS payroll not directly from activity fund  Examples of Independent Contractor – referee and artist in residence (Art, Dance, Music, Theater)  Examples of an Employee – ticket seller/taker, teacher, bus driver

49. Credit/Store Cards  Only use if allowed by board  No personal purchases allowed  Must be kept in secure location  Have a sign in/out form to monitor use (Form F-SA-13) and separate identification for each type of card  Must have prior approval for any purchase – if not, employee is liable

50. Credit/Store Cards (Continued)  Still must use PO and obtain itemized receipt  The card and support shall be submitted immediately or no later than the close of the next business day  Lost credit cards – report immediately to the appropriate office

51. Inactive Accounts  Inactive activity fund accounts may be closed at any time  Principal should be notified by the student organization’s sponsor  Student organization should vote on the distribution of remaining funds  Funds should NEVER be transferred to an entity or bank account outside the school  If student organization did not leave written instructions on disposing of the remaining funds, they will be transferred to the school activity general account  Senior class funds become inactive on commencement day and should provide instructions for unused funds before commencement day

52. Inactive Accounts (Continued)  Activity accounts will be considered inactive after 12 months of no activity  Transfers will follow the Form F-SA-10  Inactive activity fund accounts with a deficit balance will be closed by a transfer by the school activity general account as approved by the principal

53. Petty Cash  Existence and amount must be approved by board for small miscellaneous purchases  Principal shall select the person in-charge of petty cash and a check written to that person to established the fund and supported by a standard invoice (Form F-SA-8)  Cash kept in secure location and no loans from the account to anyone  All disbursements require a receipt which is stored with cash  Shown on monthly financial report and reconciled (Form F-SA-15A)  Close petty cash at end of year  No personal activity allowed

54. Budgets ‒ School Activity Funds  Budget development and cycle for school activity funds should be similar to school district’s cycle  Each club/activity must prepare a tentative budget for the next school year by April 15 th and submit to principal (Forms F-SA-4A )  Sponsors and principals shall assist in the budget process for SBDM approval  Principal must submit Internal Account Budget and individual budgets to the district finance officer by May 15 th (Form F-SA-3)  Fund-raising request from school support groups may be included as part of the school budget

55. Budgets ‒ School Activity Funds (Continued)  District finance officer and superintendent will submit all school budgets by the end of May to the local board for approval  Budgets shall include estimated beginning balances; anticipated receipts (all sources) and expenditures by category and estimated ending balances  Local board approval of school activity budgets/activities done by end of May for the following year

56. Financial Reporting  Proper segregation of duties should be maintained on a regular basis – examples provided in Appendix A of the Redbook  Prior year ending balance should be the beginning balances for the next year  Activities with a restricted purpose should be in a separate activity fund  Excessive balances should not be carried forward year to year  Principal or designee shall review monthly balances for excessive amounts and should not allow fund-raiser for those activity funds until they have been reduced

57. Financial Reporting (Continued)  Treasurer shall prepare monthly report and annual report including listing of accounts receivable and payable, reviewed and signed by principal, send to central office (Forms F-SA-15A, F-SA-15B)  Bank statement must be reviewed by principal and treasurer monthly  Reports prepared by treasurer and reviewed by principal then forwarded to the district finance officer  Monthly/Annual AFR and accounts receivables and accounts payables (Forms F- SA-15A/B) annual due July 25  List of receipts and expenditures  List of journal adjustments  List of transfers  List of non-employee payments (annual)  List of donations (annual)

58. Financial Reporting (Continued)  Each club/organization sponsor shall receive a copy of monthly reports (Forms F-SA-15A and F-SA-12)  No school activity fund shall end the year with a deficit balance including receivables and payables (general account will need to reimburse to remove the deficit)  CPA must audit school activity fund annually with a copy of report left at school  Retain financial records for three years

59. External Support/Booster Organizations  Definition ‒ Organizations established by parents/adults to promote school programs, student groups or student activities  Raise funds through board approved activities on and off school property in the name of the school or school activity and maintain funds in a separate bank account  Actions that MUST be carried out by external support/booster organizations:  MUST receive local board approval to establish and operate in the name of the district or any affiliation of the district’s schools or students  MUST be a separate legal entity (corporation, LLC, Association, etc.)  MUST follow IRS and Title IX guidelines  MUST have Federal Employer Identification Number (FEIN)  MUST not use the district’s or school’s FEIN or state tax-exempt number  MUST have external bank account

60. External Support/Booster Organizations (Continued)  MUST submit FEIN and names of officers to principal (normally at the beginning of the school year)  MUST carry insurance for general liability  MUST submit fund-raisers for approval and benefit the group as a whole  MUST ensure funds are expended in accordance with fund-raiser approval form  MUST use tickets in fund-raising involving stations (fall festivals)  MUST not require participation in fund-raisers if tax-exempt status is obtained  MUST submit budget worksheet to the principal (normally within the first 30 days of the school year)  MUST submit the annual financial report to the principal by July 15  MUST report expenditures to the principal annually for Title IX by July 15

61. External Support/Booster Organizations (Continued)  Other general guidelines of external support/booster organizations:  Generally fund-raising efforts carried out by parents/adults  Obtain state tax-exempt number if exempt status obtained  District employees may serve as general members or officer  Local board members may only serve as a general member  Neither district employees nor local board members may serve as treasurer or any officer with check-signing authority  District employees cannot order or receive goods, nor receipt or disburse cash and district employees are not allowed to have access to the funds  School activity funds cannot reimburse for purchases  Cannot pay directly for referees or officials of athletic events or pay/enhance salaries/stipends for any district employee

62. External Support/Booster Organizations (Continued)  Purchases on behalf of the school or school activity becomes district property  To safeguard cash, officers with check-signing authority should be bonded  Individuals not participating in a fund-raiser cannot be excluded from the benefits of the fund-raiser nor penalized in any way  Students may handle funds during a fund-raiser  Funds may be donated directly to the school for the school activity or paid directly by the support/booster organization

63. External Support/Booster Organizations (Continued)  External Support/Boosters Organizations ‒ Structure and Governance considerations:  Form a legal entity to serve as an umbrella entity for all external support/ booster organizations  Depending on the size of the district, more than one entity may need to be formed to make the operations of the umbrella entity more feasible  Adopt by-laws for the umbrella entity so governance is established  Obtain FEIN and file for exempt status with the IRS 501(c)(3)  Once exempt status is obtained, file for state exempt status and register with the State of Kentucky

64. External Support/Booster Organizations (Continued)  Create an accounting system to capture the cash activity by receipts and expenditures and changes in cash balances to be used in tax return filings  File annual informational tax return (Form 990) with the IRS and a copy to the Attorney General of Kentucky (required if contributions solicited)  Cost to be shared by all groups in the umbrella entity  One-time upfront cost to establish the entity and obtain exempt status  Recurring cost for IRS tax filing and Secretary of State (corporation, LLC) annual fee  External support/booster organizations are solely responsible for their compliance with all external policies and regulations (Federal, State and district regulations/policies and procedures)

65. External Support/Booster Organizations (Continued)  The school may disassociate with any external support/booster organization that does not comply with the applicable sections of the Redbook  The school or district, with the approval of the local board of education, may establish ADDITIONAL guidelines/requirements for support/booster organizations  Appendix C of the Redbook has additional resources in assisting external support/booster organizations

66. Frequently Asked Questions (FAQ)  Updated August 1, 2015  Common terms/Definitions  School activity funds (student/district activity funds)  Previous questions of prior FAQ’s unchanged  Responses to previous FAQ’s have been modified and/or changed  FAQs have been revised so the do not conflict with Red Book  FAQs are to provide clarity in certain areas of the Red Book

67. Lanny White, CPA Partner Carr, Riggs & Ingram, LLC 922 State Street Bowling Green, KY 42101 (270) 782-0700 lwhite@cricpa.com www.cricpa.com