613 Student Activity Accounting
The school board recognizes the need to provide alternative paths to learning, skill development for its students, and activities for student
enjoyment. It also understands its commitment to and obligation for assuring maximum accountability for public funds and student activity
funds. For these reasons, the school board will assume control over and/or oversee funds for student activities as set forth in this policy.
II. GENERAL STATEMENT OF POLICY
A. Curricular and Co-curricular Activities
The school board shall take charge of, control over, and account for all student activity funds that relate to curricular and co-curricular
B. Extracurricular Activities
1. The school board shall take charge of, control over, and account for the following student extracurricular activities:
a. Any student extracurricular activity related to a contract which must be ratified by the school board or its designee [Note: The school
board must take charge of, control over, and approve all contracts entered into for the purchase of items related to an extracurricular activity
(i.e., contracts for the purchase of items for a fundraising event.];
b. Student activities or transactions that have a fee which the school district is statutorily authorized to charge [Note: The school board may, but is not required to, take charge of and control over these activities or transactions.];
2. The school board shall review and account for the following student extracurricular activities:
Class of 2006
Class of 2005
All 11th and 12 Grade Class Accounts
National Honor Society
East MN Assoc Student Council
Cedar Creek Student Council
St. Francis Intermediate Student Council
C. Non-Student Activities
In overseeing student activity accounts under this policy, the school board shall not maintain or account for funds generated by non-students including, but not limited to, convenience funds of staff members, booster club funds, parent-teacher organization or association funds, or funds donated to the school district for specified purposes other than student activities.
A. Co-curricular Activity
A “co-curricular activity” means those portions of the school-sponsored and directed activities designed to provide opportunities for students to participate in such experiences on an individual basis or in groups, at school and at public events, for improvement of skills (i.e., interscholastic sports, band, etc.). Co-curricular activities are not offered for school credit, cannot be counted toward graduation, and have one or more of the following characteristics:
1. They are conducted at regular and uniform times during school hours, or at times established by school authorities;
2. They are directed or supervised by instructional staff in a learning environment similar to that found in courses offered for credit;
3. They are partially, primarily, or totally funded by public moneys for general instructional purposes under direction and control of
the school board.
B. Curricular Activity
A “curricular activity” means those portions of the school program for which credit is granted, whether the activity is part of a required or
C. Extracurricular (Non-curricular/Supplementary) Activity
An “extracurricular (non-curricular/supplementary) activity” means all direct and personal services for students for their enjoyment that are
managed and operated under the guidance of an adult or staff member. Extracurricular activities have all of the following characteristics:
1. They are not offered for school credit nor required for graduation;
2. They generally are conducted outside school hours or, if partly during school hours, at times agreed by the participants and approved by
3. The content of the activities is determined primarily by the student participants under the guidance of a staff member or other adult.
D. Public Purpose Expenditure
“public purpose expenditure” is one which benefits the community as a whole, is directly related to the functions of the school district, and
does not have as its primary objective the benefit of private interest.
IV. MANAGEMENT AND CONTROL OF ACTIVITY FUNDS
A. Curricular and Co-curricular Activities
1. All money received on account of co-curricular activities shall be turned over to the treasurer, who shall deposit such funds in the
general fund, to be disbursed for expenses and salaries connected with the activities, or otherwise, by the school board upon properly allowed itemized claims.
2. The treasurer shall account for all revenues and expenditures related to curricular and co-curricular activities in accordance with the
Uniform Financial Accounting and Reporting Standards (UFARS), the Manual for Activity Fund Accounting (MAFA) to the extent applicable, and school district policies and procedures.
B. Extracurricular Activities
1. Extracurricular Activities Under Board Control
a. Any and all costs of extracurricular activities under board control may be provided from school revenues.
b. All money received or expended for extracurricular activities under board control shall be turned over to the treasurer, who shall
deposit such funds in the general fund, to be disbursed for expenses and salaries connected with the activities, or otherwise, by the school board upon properly allowed itemized claims.
c. The treasurer shall account for all revenues and expenditures related to extracurricular activities under board control in accordance
with UFARS and MAFA and school district policies and procedures
2. Extracurricular Activities Not Under Board Control
a. All extracurricular activities not under board control shall be self-sustaining with all expenses, except direct salary costs and indirect
costs of the use of school facilities, met by dues, admissions, or other student fundraising events. The general fund shall reflect only those
salaries directly related to and readily identified with the activity and paid by public funds.
b. Revenues and expenditures for extracurricular activities not under board control shall be recorded and be managed according to MAFA and shall be reviewed for compliance with and accepted by the school board in accordance with school district policies and procedures. [Note: MAFA is required to be used when transactions of an extracurricular activity are not under school board control in accordance with Minn. Stat.123B.49, Subd. 4(c).]
c. All student activity funds will be collected and expended:
(1) in compliance with school district policies and procedures;
(2) under the general direction of the principal and with the participation of students and faculty members who are responsible for
generating the revenue;
(3) in a manner which does not produce a deficit or an unreasonably large accumulation of money to a particular student activity fund;
(4) for activities which directly benefit the majority of those students making the contributions in the year the contributions were made
whenever possible; and
(5) in a manner which meets a public purpose.
d. Activity accounts of a graduated class will be terminated prior to the start of the school year following graduation. Any residual money
from a graduating class activity fund will be removed from the terminated student activity account and deposited in accordance with the decision made by the class representatives and the principal – prior to graduation. Prior to depositing such accounts, all donations or gifts accepted for the specific purpose of the student activity account shall be administered in accordance with the terms of the gift or donation and school district policy.
V. DEMONSTRATION OF ACCOUNTABILITY
A. Semi-Annual Activity Fund Reports
The school board shall appoint a Student Finance Advisory Committee at the commencement of each school year. The Committee will review all new student activity funds and continuing student activity funds for conformity with state law, MAFA requirements, and school district policies and procedures. The Committee will provide the school board with a summary accounting of student activity accounts at least semi-annually, including a report on transactions within each account of the student
activity funds. The Committee will make recommendations to the school board on any recommended internal controls regarding student activity funds.
[Note: MAFA recommends that the school board conduct periodic reviews of student activity funds for conformity with state law, MAFA requirements, and school district policies and procedures. The manner in which such reviews are conducted is in the discretion of the school board. The foregoing procedure is the practice suggested by MAFA. It could also be
done by a different standing or special committee appointed by the school board.]
B. Annual External Audit
The school board shall direct its independent certified public accountants to audit, examine, and report upon student activity accounts as part of its annual school district audit in accordance with state law.
C. Fundraiser Report
The Committee will prepare a fundraising report semi-annually which will be reviewed by the school board in May and November. The report will list the activity, type of fundraisers, timing, purpose, and results.
[Note: MAFA recommends that the school board conduct periodic reviews of student fundraising. The manner in which such reviews are conducted is in the discretion of the school board. The foregoing procedure is the practice suggested by MAFA.]
Minn. Stat. 123B.02, Subd. 6 (General Powers of Independent School Districts)
Minn. Stat. 123B.09 (Boards of Independent School Districts)
Minn. Stat. 123B.15, Subd. 7 (Officers of Independent School Districts)
Minn. Stat. 123B.35 (General Policy)
Minn. Stat. 123B.36 (Authorized Fees)
Minn. Stat. 123B.37 (Prohibited Fees)
Minn. Stat. 123B.38 (Hearing)
Minn. Stat. 123B.49 (Extracurricular Activities; Insurance)
Minn. Stat. 123B.52 (Contracts)
Minn. Stat. 123B.76 (Expenditures; Reporting)
Minn.Stat.123B.77(Accounting, Budgeting, and Reporting Requirement)
Minn. Rules Part 3500.1050 (Definitions for Pupil Fees)
Visina v. Freeman, 252 Minn. 177, 89 N.W.2d 635 (1958)
Cross References: Uniform Financial Accounting and Reporting
Manual for Activity Fund Accounting (MAFA)
MSBA/MASA Model Policy 701 (Establishment and Adoption of School District
MSBA/MASA Model Policy 701.1 (Modification of School District Budget)
MSBA/MASA Model Policy 702 (Accounting)
MSBA/MASA Model Policy 703 (Annual Audit)
MSBA/MASA Model Policy 704 (Development and Maintenance of an Inventory of
Fixed Assets and a Fixed Asset Accounting System)
MSBA/MASA Model Policy 706 (Acceptance of Gifts)
Adopted: April 25, 2005
Independent School District No. 15
St. Francis, Minnesota