School Board of the City of Virginia Beach
Policy 3-51

BUSINESS AND NONINSTRUCTIONAL OPERATIONS

School Activity Funds/Internal Accounts

A. Generally

Virginia Board of Education regulations define School Activity Funds as, "All funds received from extracurricular school activities such as entertainment, athletic contests, cafeteria, club dues, etc., and from any and all activities of the school involving personnel, students, or property . . ." The School Board is responsible for administering these regulations in the division's schools. Funds defined by law as public funds are not subject to these regulations and are to be handled as provided by law.

B. Guidelines

The Superintendent is delegated and directed by the School Board to supervise the operation of these accounts and to ensure that they are operated according to these guidelines:

1. No School Board funds or accounts are to be commingled with School Activity Funds or accounts.

2. Each school shall keep an accurate record of all receipts and disbursements so that a clear and concise statement of the condition of each fund may be determined at all times. Monthly reports of such funds shall be prepared and filed in the office of the principal and Office of Business Services.

3. It shall be the duty of each principal to see that such records are maintained in accordance with School Board Policy, Regulations promulgated by the Superintendent, and State Board of Education Regulations.

4. The principal or person so designated by the principal shall perform the duties of school finance officer or central treasurer.

5. The school finance officer and principal shall be bonded.

6. Specific forms, as prescribed by the Virginia Board of Education, shall be used to record entries and transactions of the student activities funds.

7. School Activity Funds (internal accounts) must be audited at least once a year by a certified public accountant, duly qualified accountant, or accounting firm approved by the School Board. The cost of such audit is a proper charge against the School Operating Fund or School Activity Funds. This annual audit shall result in an Annual Audit Report referred to in 8, below.

8. A copy of a school's Annual Audit Report referred to in 7, above, must be maintained in the office of the principal of that school and in the office of the Superintendent. Following the completion of all schools' Annual Audit Reports, a report containing a summary of all such reports will be presented to each School Board member at the School Board meeting immediately following the presentation of such report to the Audit Committee.

9. No account is to be overdrawn for any reason, unless receipts are forthcoming.

10. Specific activity sub-accounts are not to accumulate balances in excess of one year's basic operating expenses unless written justification is provided and approval is secured from the Superintendent or a designee.

11. School Activity Funds shall not be used for salary supplements or similar payments to compensate school employees for any activity related to school resources or students.

12. Financial records of School Activity Funds shall be retained and disposed of in accordance with regulations concerning financial records retention and disposition promulgated pursuant to the Virginia Public Records Act (§ 42.1-76, et. seq.) by the State Library Board; however, records pertaining to non-appropriated school activity funds need not be retained longer than five (5) years.

Editor's Note
See also "Accounting Procedures for School Activity Funds in Virginia Beach Public Schools."

Legal Reference:

Code of Va., § 22.1-89.2. Financial records retention and disposition schedule.

Board of Education Regulations Governing School Activity Funds, § VAC 20-240-10 et seq.

Library of Virginia Records, Management Division, General Schedule No.2, "Fiscal Records," http://leo.vsla.edu/records/schedules/gs-2.html

 

Cross Reference:

Policy 3-42 and Regulation 3-42.1, Record Keeping.

Policy 3-47, Surety Bonds.

Policy 3-46, Audits.

Virginia Beach City Public Schools Internal Audit Charter approved by the School Board August 20, 1996.

 

Adopted by School Board: February 16, 1993
Amended by School Board: October 19, 1993
Amended by School Board: February 16, 1999