NORTH PENN SCHOOL DISTRICT
Administrative Regulations
5135(a)
STUDENTS
Reference: Board Policy #5135 &
Administrative Regulation #4137
Elementary and Secondary
Management of Student Activity Funds
Philosophy
North Penn School District Board of Education encourages students to participate in worthwhile
student organizations and activities. Students should gain skills by working effectively together in
democratic groups. Students may gain valuable experience available only as part of the planning,
conducting, and evaluation of activities. The Board of Education believes that the existence of
student activity funds provides a valuable learning experience for the students through the raising,
control and disposition of such funds.
Purpose
Section 511 of the Commonwealth of Pennsylvania Public School Code clearly indicates that each
school should have a policy for Student Activity Funds which provides for reasonable rules and
regulations regarding student activities and procedures in place for organizations, management,
supervision, control and financing of student activities
Use of Activity Accounts
Student Activity Funds are earned by the students and are expended only to benefit the students.
The monies should be designated for student purposes and restricted to use for those students
currently in school. Generally, Student Activity Funds should be used to finance a program of
activities not part of the regular curriculum. They should not be used to circumvent management or
purchasing decisions made for the school district by the board of school directors or district
administration.
Eligibility and Membership
Membership in student organizations or participation in academically related and special interest
clubs is available to all middle and secondary students. Students who choose to participate in
various activities should be involved in the fiscal management of those activities. Each activity
group will consist of a student president, student treasurer, and faculty advisor.
Management of Student Activity and Athletic Funds
Fiscal accountability is a primary responsibility of the faculty advisor of board approved student
activities. The faculty advisor and the student treasurer must maintain a record of their activity
balance. This means that appropriate control must be exercised to ensure that monetary receipts
and expenditures are properly accounted for. Any discrepancies must be brought to the immediate
attention of the activity accounts bookkeeper.
CONTINUED
ADM. REG. 5135
12/1/07 srk
5135(b)
Deposit and Withdrawal of Student Activity Funds
Receipts
All monies to be deposited will be entered in the deposit control book, maintained in the principal's
office/office vault, the same day the monies are collected.
All cash receipts from any activity or event must be deposited in the appropriate student activity
account at gross value immediately following the activity or event. Preparation of the "District
Activities Account - Deposit Ticket" (triplicate pre-coded) will be done at the building level. A
separate deposit ticket will be prepared for each activity desiring to deposit monies. It is extremely
important that the identification of the activity account is listed on the face of the deposit ticket. If a
deposit slip is returned to the business office with a correction, the activity accounts bookkeeper will
return a copy to the club advisor and it is his or her responsibility to correct the club log books.
Procedure for Preparing Bank Deposit and the Deposit Ticket
The basic guidelines to be followed when preparing bank deposit tickets for the activity and athletic
funds are:
1.
All checks being deposited must be endorsed with the stamp of the activity account or with
the stamp of the athletic fund account. If a stamp is not available, the words “For Deposit
Only” followed by the account number should be written on the backs of the checks.
2.
All deposit tickets must be dated as per the date recorded on the control form in the principal's
office/office vault.
3.
It is imperative that the activity account to be credited be recorded in the lower left corner of
the deposit slip, e.g., name of building and appropriate account such as Accolade, principal's
account, music account, etc.
4.
Check cash deposits twice for accuracy - preferably with a second person. Money should be
counted by advisors and not students. If students do count the money, the advisors need to
check and initial.
5.
Bills must be wrapped in the appropriate denomination wrappers, i.e., $1's, $5's, etc. All bills
must be turned in the same direction.
6. Coins must be wrapped in the appropriate denomination wrapper.
Expenditures
There shall be no cash payments from gate receipts or other monies, collected by any organization,
to any vendor or to any individual(s) in payment for materials or for services rendered. Payment
can be made only from an original invoice.
All payments for Activities Fund purchases should be made by check. The form "Activity Account Request for Funds" (triplicate) is to be initiated by the activities advisor for the purpose of
processing a check from the activities account in payment of materials and/or services. The forms
are to be signed by each school’s principal before being sent to the business office for processing.
Form SA-2 will be used each time a deposit is to be made or a pay voucher is processed by an
activities advisor. The completed form will be reviewed mid year and be audited during summer
break by the business office staff.
CONTINUED
ADM. REG. 5135
12/1/07 srk
5135(c)
Procedure for Initiating and Terminating Student Activity Accounts
All new student activity clubs must be approved by the board of school directors. New activity
accounts may be opened as part of the district activity and athletic funds by a written request from
the building principal, through the appropriate director, to the business office.
All faculty club advisors will be approved by the board of school directors on an annual basis .
Student club officers will be approved by the building principal...
Existing activity accounts are terminated by a written request sent to the business office by the
appropriate advisor after being processed through the building principal and the appropriate
director.
Inactive Accounts
When a club or activity account has been inactive for a period of one year, the business office will
notify the principal of the club’s inactive status along with an accounting of the remaining funds.
The principal will make a determination as to the disposition of the balance of the funds
In both existing and inactive accounts, pursuant to the Public School Code of 1949 24 O.S.
Section 5-511, the leftover funds must be used to further a school-related purpose, which includes
transfer to another student activity account or a succeeding class.
Graduated Class Accounts
Graduating classes must use or commit their funds prior to or within one year of their graduation.
The business office will notify the principal at the end of the year
if funds remain following graduation. If there has been a commitment of the funds for a specific
class gift, funds will be moved to a reserve account for no longer than one additional year.
If the funds have not been committed, the principal will make a determination as to the remaining
funds following the guidelines of any inactive club or account.
Interest Earnings
Interest earnings will be prorated between the accounts at the end of the fiscal year. The pro-ration
will be done on the average of the previous 12 months monthly balance. Interest will not be paid to
accounts closed anytime prior to the month of June or to any inactive class accounts.
Ticket Control
Consecutively numbered tickets secured from the building administrator in charge of student
activities are recommended for all events where admission is charged.
All tickets issued to an individual or organization must be accounted for in cash or by returned
unsold tickets. All tickets collected at the gate will be torn in half and returned to the building
administrator for proper disposal.
When special tickets are required for any event or series of events, e.g., season tickets for athletic
events or for a drama production, the printing and payment of such tickets must be requested on a
Student Activity Request for funds form which will be signed by a building administrator. Data
regarding the tickets issued will be recorded on Form SA-6 which will be completed in duplicate.
When single admission roll tickets are required (to be sold at the gate or door) for events such as a
dance, a concert, or an athletic event, the tickets will be requisitioned from the building
administrator in charge of student activities.
CONTINUED
ADM. REG. 5135
12/1/07 srk
5135(d)
All monies received from the sale of tickets must be deposited in the organization's activity account
at gross value.
General Operating Procedures and Uses of Funds
1.
Revenue earned from commissions for administering sales and/or donations from parents or
student groups should be placed in a "general" account to be spent for the general welfare of
the student body and for purchases not currently fundable through the district's General Fund.
The "general" account will be maintained under the direct supervision and control of the
building principal.
2.
Non-school funds (monies which parent groups or faculty groups collect and disburse) shall
not be included in the Student Activity or Athletic Funds. These funds may not be used to
make purchases for any individual or outside organization as a convenience or to make
privileged or tax-free purchases.
3.
Purchases shall be made in accordance with the quotation and bid requirements as
established in the PA school code. Quotes are required for purchases in excess of $4,000
but less than $10,000, and bids are required for purchases in excess of $10,000. The quote
and bid limits apply to all, including products sold in the school store or book store, yearbooks,
pictures, rings, clothing, perishable products, etc. Purchases for fundraising and services
such as prom hotels and music groups are not subject to bid/quote requirements. The
quotation or bid requirement shall not be circumvented by making separate purchases.
4.
Checks will be signed by the president, secretary, and treasurer of the North Penn
School District Board of Education.
5.
At no time shall gate receipts or other monies be taken from the school premises following an
event except for deposit in a bank's night depository by an authorized person.
6.
There shall be no cash payments from an organization's funds or gate receipts to any vendor
or for any services rendered.
7.
Checks for performing groups or other persons who have rendered services or materials must
be processed (Activity Account - Request for Funds) in adequate time to have a check
available on the date of the event.
8.
Tickets must be used at dances or other events where money is ordinarily collected at the
door. Ordering of tickets for any school event will be done by a building administrator in
charge of student activities.
9.
All advisors will submit a financial report to the principal in charge of student activities, for
each fundraising activity.
10.
All advisors will receive monthly statements of balances in the various activities accounts
directly from the Activity Accounts Bookkeeper.
11.
All advisors and the student treasurer must, on a monthly basis, reconcile their individual logs
with the report issued monthly by the district business office. (Use Form SA-8.) Any
discrepancies should be reported immediately. A copy of this reconciliation shall be made a
permanent part of the advisor’s file so that such reconciliation can be examined during the
course of internal audits.
12.
At the end of the school year the high school office vault log, as well as the advisors'
individual log books, shall be collected and filed in the district business office.
CONTINUED
ADM. REG. 5135
12/1/07 srk
5135(e)
13.
An annual audit of the advisor's log shall be conducted by the district business office
staff.
14.
A petty cash fund not to exceed $25 may be established from each activities account. All
expenditures must be documented by receipts - cash register tape or other approved receipt
of the vendor.
15. No confirming orders will be paid from the student activities account.
Legal Requirements
All activities advisors must follow these guidelines:
1.
Reference is made to Section 511 of the School Laws of Pennsylvania:
2.
Reference is made to Board Policy #5135 of the North Penn School District dealing with the
management of student activity funds.
3.
Reference is made to Administrative Regulation #4137 of the North Penn School District
regarding fundraising through soliciting and selling.
Collection of State Sales Tax / Exemption of Sales Tax
The purchase of property or services for use by school organizations in connection with their
activities is tax exempt under the school’s tax exemption number.
Fundraising Sales
When a public school purchases taxable property such as seat cushions, greeting cards, candles,
etc. for resale to raise funds, the public school must pay the applicable sales tax at the time of the
purchase or collect the sales tax from the customer when the item is resold. If sales tax is paid to
the vendor when purchasing the taxable item the school can reimburse itself by adding the amount
of tax paid to the charge to customers when the item is resold. Paying the vendor and building the
sales tax into the purchase price is the most advantageous alternative.
If your school chooses not to pay the tax to the vendor or, as in the case of out-of-state purchases,
may not be able to pay the tax to the unlicensed vendor, the school will accrue and remit the
appropriate rate of tax to the business office who in turn will send it to the Department of Revenue
directly under its sales tax license rather than requiring the students to collect sales tax on
fundraising sales. As explained above, the school can reimburse itself by adding the amount of use
tax it accrued and remitted to the price charged to customers on resale of the item.
Sales from School Stores
If the school organization operates a school store, sells pictures, class rings and/or yearbooks, or
sells property or services to the public, then the sale would require the collection and remission of
the tax directly to the Department of Revenue.
Miscellaneous Issues
Sales of tools, materials or services to a student for use in completing a required project pursuant to
a course of instruction are exempt from sales tax. Tools, materials or services resold as a class
project or in connection with services provided on a fee basis are taxable transactions.
CONTINUED
ADM. REG. 5135
12/1/07 srk
5135(f)
Sales by school-related organizations are totally independent from that of the school. PTO’s,
PTA’s, band boosters and similar organizations cannot use the school’s tax exemption number in
connection with purchases made. The school has no responsibility for remitting sales tax that may
be collected or due and owing from this type of transaction.
Restaurant and Hotel Expenditures
The school tax exemption number may be used in connection with the purchase of food and
beverages at a restaurant as long as billing is directly to the school and payment is made from
school funds. The law excludes from tax the sale of food or beverages on school property by a
school organization. The school tax exemption number may not be used in connection with the
purchase of occupancy of a room or rooms from a hotel/motel because there is no exemption from
hotel occupancy tax that the school district may claim.
Information on State Sales Taxes
The school district has an exemption number which is different than a license. This is a preassigned number by the Department of Revenue and appears on all tax exemption certificates. It is
76-46570-2.
The school district has a license to report collection of sales taxes. It is 46232455.
School organizations for whom we have fiscal responsibility such as classes, bands, choirs, drama
groups, etc., may use the district's exemption certificate to make tax free purchases of tangible
personal property or services from activity fund accounts administered by the schools, provided the
purchase and/or invoice reflects the name of the school district.
Home and school associations, although school-related organizations, are not permitted to use the
school district exemption number.
Taxable vs. Nontaxable Items
Any property purchased by a school or school organization for sale of the type which is not subject
to sales tax may be purchased and resold without the collection or the payment of tax.
Examples:
Taxable Property
Nontaxable Property
> Books (other than textbooks)
> Cakes and cookies
> Calendars
> Candy
> Cosmetics
> Hoagies
> Greeting cards
> Gym suits, jackets,
> Christmas cards, etc.
sweat suits, etc.
> Notebooks
> Soap
> Paper, pen, pencils
> Textbooks
> Stadium cushions
> Stationery and stationery supplies
The law excludes from tax the sale of food or beverages at or from a school in the ordinary course
of its activities. Therefore, sales of food, soft drinks, or other beverages primarily for the faculty and
students, from the school cafeteria, from vending machines, or from an eating stand located on
school property are not subject to tax.
CONTINUED
ADM. REG. 5135
12/1/07 srk
5135(g)
Reports of Sales to Remission of Taxes
Quarterly reports must be submitted to the Department of Revenue of total gross sales, less sales
of nontaxable sales, to determine amount of taxable sales resulting in the amount due to the state.
It is incumbent on all building principals to have advisors complete these reports for forwarding to
the business office on the appropriate dates.
ATTACHMENT
Reviewed: November 1993
Reviewed: December 2007
ADM. REG. 5135
12/1/07 srk
5135(h)
NORTH PENN SCHOOL DISTRICT
Reconciliation of Activity Account
MONTH ________________ YEAR________ ACCOUNT ___________________________
ADVISOR __________________________________________
How to reconcile your activity account:
1. Use business office monthly statement and your log book.
2. Compare total of deposits for the month on each. If deposits are in
transit, you will need to reconcile this amount in #7 below. (In June,
interest added to your account must be recorded in your log book.)
Outstanding
Pay Orders
#_____
Amount
3. Compare total expenditures for the month on each. If pay orders
have not been processed, you will need to list those outstanding and
place the total in #5 below.
4. Write balance from your log book here.
5. Write total outstanding pay orders here.
$__________
+
6. ADD lines 4 and 5.
$__________
7. Write deposits you have made but not yet
included in the business office monthly
statement.
8. SUBTRACT line 7 from line 6. This should
be the amount of the balance shown on
the business office monthly statement.
__________
__________
$__________
ATTEST______________________________
Advisor
__________
Date
______________________________
Treasurer
__________
Date
______________________________
Principal
__________
Date
______________________________
Director of Financial Affairs
___________
Date
Total
ADM. REG. 5135
12/1/07 srk