Redbook
description
Transcript of Redbook
RedbookFrequently Asked Questions
Presenter
Susan BarkleyDivision of District [email protected] extension 4437
FAQs
• KDE website – same page as the Redbook• http://
education.ky.gov/districts/FinRept/Pages/Accounting-Procedures-for-School-Activity-Funds.aspx
• Will continue to be updated periodically • New information is in red type• Publishing date on website and document
Purpose of the Redbook
• Protect funds raised by students• Protect students against funding
responsibility
Key Provisions
• Item #1 on page 7 – “contributions and collections derived from school-sponsored fundraising activities shall be deposited in the school’s activity fund bank account”
• Item #5 on page 7 – “fundraising activities are to benefit students, so fundraisers to cover staff payroll and other operating costs are not permitted”
Key Provisions
• Item #1 on page 20 – “school activity funds are raised for a specific function or purpose during a specific fiscal year and must be used for that specific function during that period”
• Item #2 on page 20 – “due to timing…a school may have to carry forward funds from year to year”
Required at School Level
Student Activity Funds - Contributions and collections derived from school-sponsored fundraising activities• Fundraising by student clubs and student organizations• To support student clubs and organizations• Expended with input from student clubs and organizations
Required at District Level
• Grants• Day care fees• Adult education fees• Tuition fees• Donations (unless board policy allows donations at the
school level)• Any funding source restricted to an expenditure
disallowed by Redbook (except student fundraising)
Aside from those requirements….
…there are OPTIONS
School Activity Funds
Student Activity Funds
District Activity Funds
School Activity Funds =
School Bank Account
Student Activity• Must be deposited at the
school level• Raised by student
fundraising• Expended with input
from student groups
District Activity• Can be deposited at the
school or the district• Raised by school/district
or staff• Expended with input
from staff
Potential Student Activity Funds
• Funds raised by students• Expended by student
groups
• Chorus Club• Debate Team• Class of 2016• Beta Club• Cheerleading Club• Band• FFA
Potential District Activity Funds
• Support co-curricular and extra-curricular activities• Not raised and
expended by student groups
• Gate receipts• Book fair• Locker fees• Parking fees• School plays• Field trips• Picture sales• Other commission
sales
School Bank Account• School Activity Funds• Subject to Redbook• No operational
expenditures
District Bank Account• District Funds• Not subject to Redbook• Any expenditure that
meets “educational purpose”
Narrow Allowability Increased Flexibility
School Bank Account
• Reported as Agency Fund on district financial statements• Cannot be used for district’s own programs• Not included in per pupil expenditures
District Activity Funds Deposited in District Bank Account
• Use special revenue fund if use is restricted, otherwise use general fund• Project codes 7XXX available to track
funds separately• Guidance forthcoming regarding Fund 21
Best Practice?
• How are you handling district activity funds deposited in the district bank account?
• Submit your best practice on KDE website at http://odss.education.ky.gov/bestpractices/BP_Submit_r1.aspx?view_id=0.
How Can School Activity Funds be Spent?
• School activity funds shall not be expended for operating costs (in old Redbook, too)
• Must benefit student clubs or organizations• Cannot be used to support the district’s own
programs (GAAP)• Go back to the purpose of the Redbook
Tests
• Redbook test: Is the expenditure operational in nature? If so, can’t use school funds
• District test: Does the expenditure have an “educational purpose”? If so, you can use district funds
Operating Expenditures
• Operating transactions are incurred in the course of the operating activities of the institution
• “It’s what we’re here to do”• Anything supporting regular operations
Operational vs. Direct Student Benefit
Even if there is direct student benefit, you cannot use school activity funds to pay for expenditures which are operational in nature
Is the cost incurred solely because of the student group and does the purchase benefit
only that group?
Operating Expenditures
Expenditures for instruction are likely to be operational because that’s what the school is in the business to do: instruction
Operating Costs
Example
s:
•Renovation or maintenance of school facilities or buses•Additions or improvements to buildings or grounds•Furniture for offices•Professional development•Textbooks for general use•Salaries for district-created positions•Substitutes incurred in normal course of business
Transporting Student Groups
• If paid with school activity funds, driver salary/benefits and fuel only
• Cannot pay for maintenance or depreciation of school bus unless used only by the student group• Example: a charter bus rental
Student Fees and Charges
“All student fees and charges shall be adopted by the board. The fee shall remain in place until modified or removed by board resolution. All student fees adopted by the board shall be used for the purposes set forth in the motion and shall not be spent for any other purpose.”
What is a Fee?
Fee• Adopted by the board
• Tracked by individual student
• May be refunded• May be subject to fee
waiver requirements
Donation• A “fee” that is not
adopted by the board• Cannot be tracked by
individual student• Cannot be refunded• Not subject to fee waiver
because it is not a fee
Fee Waiver
• 702 KAR 3:220• Activities meeting that definition require a fee waiver process• Trips intersecting with any part of the school day• Fees to participate in school-sponsored courses, activities, or
programs• Use of school property• Intramural sports, music, or fine arts• Others
• Fee waiver for students qualifying for free or reduced meals
Donating to Specific Students
• Cannot be done through the school accounts• “Donations” can be made directly to parents/students• Will not be tax-deductible to donor• Donations may be made for fee waivers in general
Additional Questions