710R-A - School Activity Funds

    1. General

      School activity funds must be maintained in accordance with school board policies and in compliance with the law. The following basic principles shall guide the administration of FCPS activity funds.

      1. Funds derived from the student body as a whole shall be used to benefit the student body as a whole.

      2. Generally, school activity funds should be spent in such a way as to benefit those pupils who are in school and who have contributed to the accumulation of such funds.

      3. Activity funds shall be used solely in accordance with the purpose for which such funds are collected.

      4. Projects for raising Frederick County Public Schools’ activity funds shall contribute to the educational experience of students and shall not conflict with the instructional program. The superintendent shall prescribe regulations governing the conduct of such fundraising activities (R-B).

      5. Student representation is encouraged in the management of funds raised by the student body and spent for its benefit. This management is subject to supervision by FCPS personnel.

      6. FCPS activity funds shall be managed in accordance with the best business practices, including sound budgetary and accounting procedures.

      7. Student body business shall be conducted in such a manner as to offer minimum competition with commercial concerns.

      8. Principals or their designees are required to participate in the preparation, modification, and interpretation of the policies, regulations, and procedures affecting student body affairs.

    2. Management of School Activities Funds

      1. Two signatures are required on all checks on school activity accounts: the principal or assistant principal's and the secretary or bookkeeper's.

      2. Each school should utilize a rubber stamp with the imprint For Deposit Only to the account of School. This stamp must be used instead of a signature endorsement on the back of any check made to the school. All checks received by the school shall be made payable to the school.

      3. Reports of activity funds are to be submitted to the finance department as shown below:

        1. transaction statements

        2. bank reconciliations

        3. gate receipts/disbursements

      4. All schools' activity funds will be set up according to established account structures through the student activity software. Any changes or additions to activity fund accounts must be approved by the software specialist/trainer in the finance office.

      5. Receipts must be written when funds are received by the bookkeeper. Funds received by other school staff shall be documented and submitted to the bookkeeper prior to the close of the day. In most cases, individual receipts shall be written but in certain instances a class roster is acceptable if the individual receipts are $25.00 or less. Individual receipts shall be written if requested even if the amount is less than $25.00. Receipts are not required when there is an exchange of a tangible item (i.e. shirt, bumper sticker, etc.).

      6. Funds must be deposited when the amount collected is $100.00 or more. Regardless of the amount, funds must be deposited on the last working day of the week.

      7. The school's transaction activity should be posted daily. Any exceptions should be approved through the finance office.

      8. Bank statements must be reconciled promptly when they come from the bank and a copy of the reconciliation report remitted to the finance department for review as noted in #3 above.

      9. Any receipts and disbursements to petty cash must be carefully documented. Petty cash, in most instances, should not exceed twenty-five dollars, and in no case should it exceed the limit set in school board policy.

      10. Schools may use interest-bearing checking accounts. The principal should review average checking-account balances periodically to determine if there are any excess funds available to purchase certificates of deposit that bear interest at higher rates.

      11. Interest income from all accounts may be allocated between the different funds. Interest income allocated to different funds may be credited to any account at the discretion of the principal. In instances where large funds are included among other funds, it may be necessary to allocate their pro rata share of interest income to them. The allocation can be derived by averaging the monthly balances in the funds and allocating the interest income to the funds on a percentage basis.

      12. Any money donated must be processed through the school account and not donated directly to the activity sponsor.

      13. Deficit balances in any accounts should be removed as soon as possible and must be removed by the end of a fiscal year unless supporting documentation is provided by an accounts receivable.

      14. All disbursements must be made by check except those made from petty-cash funds.

      15. Personal transactions through the school activity funds are prohibited. This includes cashing of personal checks for students, staff, or faculty.

      16. The maintenance and transportation departments will follow special guidelines.

      17. The school board requires an annual audit of all funds collected and spent by each Frederick County School’s activity fund. Additional audits or financial reviews may be conducted as deemed necessary by the executive director of finance. The finance office will notify each school of the audit firm selected to perform the audit.

      18. Internal audits may be performed by persons designated by the executive director of finance.

      19. Copies of the annual audit report shall be maintained in the finance department.

      20. Cash shall not be left unattended in teachers’ desks, lockers, or closets during the school day. Any cash that remains in the school building overnight shall be submitted to the school office and placed in a secure location.

      21. All of the above as well as additional guidelines are provided in the FCPS Manual of Accounting, which outlines a system of internal controls, including the receipt and disbursement of cash, accounting procedures, and other standards necessary to maintain an adequate system of financial safeguards.


    Adopted: October 15, 1982
    Amended: August 22, 1995
    Amended: December 9, 1997
    Amended: August 29, 2007
    Amended: February 15, 2011
    Amended: October 12, 2016