5520

Adoption Date: 8/28/1984, Revised: 10/21/2008; 6/20/00; 8/13/02; 4/12/05; 4/25/06; 10/21/08; 10/19/2010
5000 - NON-INSTRUCTIONAL/BUSINESS OPERATIONS

FISCAL ACCOUNTING AND REPORTING
5520 EXTRACLASSROOM ACTIVITIES FUNDS

Extraclassroom activity funds are defined in the Regulations of the Commissioner of Education as "funds raised other than by taxation or through charges of a Board of Education, for, by, or in the name of a school, student body or any subdivision thereof." Basically, extraclassroom activity funds are those operated by and for the students. Monies are usually collected voluntarily by pupils and are spent by them as they see fit so long as they abide by established regulations.

Extraclassroom activities must not be confused with funds accounted for in accordance with the Uniform System of Accounts prescribed by the State Comptroller. Procedures discussed in this policy and applicable regulations apply only to extraclassroom activity funds.

The Board of Education recognizes that the fundamental task of the schools is to prepare young people for life. In order for this preparation to be done properly, the education program of the schools must be as wide as life itself. An integral part of such a program is extraclassroom activities. They represent an essential part of the educational experiences, which should be available to young people. In order to promote the organization and maintenance of extraclassroom activity funds, the Board of Education hereby adopts rules and regulations for the guidance of students, teachers, and principals.

All funds raised with the involvement of staff in support of their area of official responsibility, shall be considered extraclassroom and as such shall be subject to the accounting controls outlined in this policy.

Financial Procedures

All extraclassroom activity funds shall be handled in accordance with the financial procures illustrated by Finance Pamphlet No. 2, The Safeguarding, Accounting and Auditing of Extraclassroom Funds, 2008, published by the New York State Education Department. All commitments and contracts shall be the sole responsibility of the extraclassroom activity club giving rise to the transaction, regardless of a change in advisors, membership or officers.

Payments from the extraclassroom activity fund shall be made only for expenditures that have been documented with an original receipt or invoice. Copies of receipts, faxes or vendor statements will not be accepted.

Inactive Clubs and Leftover Funds

An inactive extraclassroom activity shall be defined as one having no financial activity for one full school year. If an inactive club is identified, the District Treasurer is directed to liquidate the leftover funds of this club in accordance with the following. Leftover funds of inactive or discontinued extraclassroom activities and of graduating classes shall automatically revert to the account of the general student organization or student council. Inactive clubs must follow the organizational procedures set forth in this policy and in Policy #7410 to reactivate previously existing activities.

Sales, Campaigns and Fundraising Activities

The chief faculty advisor shall provide information to the Superintendent or designee on sales, campaigns and fundraising activities of all extraclassroom activity clubs, including the nature of the vent, dates of operations, duration of sale or campaign, and means of solicitation (e.g. door-to-door, direct mailing, etc.). The faculty advisor, together with the student treasurer, shall prepare a profit and loss statement at the end of each fundraising event.

Risk Management

The chief faculty advisor shall work with the business official to assure that the District's exposure to any risks resulting from club activities or fundraiser in minimized. In all cases where a vendor will be using District facilities to conductits event, the District requires a certificate of insurance with the District named as an additional insured.Periodically, the District may request that a primary liability insurance carrier conducts a review of the activities and may prohibit certain events based on the review results.

Tax Exempt Status

The extraclassroom activities of the District are not included in the exemption granted to the School District from New York Sate sales tax.Without exemption, clubs and activities areprohibited from using the school's tax exemption.The taxable status of all fundraising events specified in the administrative regulations to this policy shall be enforced as listed by the District treasurer. Any event not specifically listed shall be deemed taxable unless a written determination that is non-taxable has been issued from the business official to the District Treasurer. The District Treasurer shall be responsible for filing the period sales tax returns for the extraclassroom activity funds.

Contracts, Commitments and Guarantees

As contracts, commitments and guarantees require approval of the District's purchasing agent.All commitments and contracts shall be the sole responsibility of the extraclassroom activity club giving rise to the transaction, regardless of change in advisors, membership or officers.

Policy References:
8 New York Code of Rules and Regulations

(NYCRR) Part 172

Policy Cross References:
» 7410 - EXTRACLASSROOM ACTIVITIES
» 7460 - FUND RAISING BY STUDENTS


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