3453 - Activity Funds

Policy 3453

Business/Non-Instructional Operations

Activity Funds

Consistent with State Statutes, the Board of Education will approve the existence of activity funds to provide supplemental educational opportunities to the district students and to provide for other specific purposes the Board considered desirable.

The establishment of activity funds will be approved by Board action.  On an annual basis, the Board will consider the continuance of existing funds.

The Superintendent of Schools or his designee will approve signatories for the expenditure of all authorized activity funds.

Funds will be administered and maintained in accordance with rules and regulations established by Board action. Earned interest will be allocated annually to all sub-accounts on a pro-rated basis.

Legal Reference:        Connecticut General Statutes
                                    10-237 School activity funds.

Policy adopted:           April 4, 2017           

Newtown, Connecticut


Business/Non-Instructional Operations

Management of Activity Funds

Section 10-237 of the Connecticut General Statutes authorizes the establishment of school activity funds and “expenditures from such funds in the manner and upon such authorization as the Board of Education prescribes by regulation.”  These regulations are established to define the procedures for the proper management of these accounts.

Manager of an Activity Fund

The Board of Education must approve the initial establishment of any activity fund and designate the administrator responsible to manage, monitor, and oversee its operation.  The Board will authorize, at its discretion, the continuance of these activity funds on an annual basis.  This will be done prior to the close of the fiscal year.

The designated administrator will be responsible for the proper receipt of funds and the appropriate expenditure of funds.  Only transactions dealing with student-related activities or for those activities expressly permitted by Board action may flow through these funds.

Receipt Control

Activity funds may be generated from a number of sources including athletics, publications, concessions, club activities, donations, fund raising drives, collections from students, and other such activities.  Receipt control procedures include, but are not limited to:

            1.     All funds should be accounted for by pre-numbered receipt forms, written promptly upon receipt of funds.  When funds are subsequently deposited, the deposit ticket should indicate which receipts are being deposited.

            2.     All funds should be turned in to the school office within 24 hours of receipt.

            3.     All checks should be endorsed for deposit immediately upon receipt.

            4.     Bank deposits should be made as promptly as possible - daily if feasible.

            5.     Appropriate security measures - locked cash boxes, safes, and vaults - should be used to protect all cash and cash items.


Expenditures of activity funds may be made only for student-related activities or for items expressly approved by Board action.  The expenditure of student funds should be linked to the student activities responsible for generating the funds.  This could include instructional and educational materials, field trips, school pictures, refreshments, expenses associated with fund raisers or other enrichment activities deemed appropriate by the designated school administrator.  Expenditures that are expressly prohibited include repairs and maintenance of district-owned equipment, custodial supplies and equipment, payment for services that are the responsibility of the district or for district assignments.  Any item purchased with activity funds for student or employee use must be approved by the designated administrator.  Any questions involving the appropriateness of an expenditure will be resolved by the Superintendent or his/her designee.

All expenditures must be made by a check written on the school’s checking account.

            1.     All checks used are pre-numbered by the printer.

            2.     All checks are to be co-signed by two individuals whose signatures, on an annual basis, have been approved by the Superintendent of Schools.  Approved signatures should be on file with the banking facility.  Authorized signatories will include the individual responsible for the daily maintenance of the activity fund records.

            3.     All checks should be supported by appropriate vendor invoices, receipts, or properly approved payment vouchers.  Invoices shall be properly priced and mathematically accurate, with the checks matching invoices.  Any differences should be recorded.

            4.     Checks are drawn only for authorized expenditures.

Record Keeping

The designated administrator shall ensure that the following record-keeping requirements, as a minimum, are met:

            1.     Pre-numbered duplicate receipt records are maintained.

            2.     Files of invoices are maintained.  Those that have been paid should bear evidence of the approval of the designated administrator.  A file of unpaid invoices should be maintained so the status of the fund can be accurately determined.

            3.     After monthly reconciliation of the bank statement, all bank statements, receipts, and canceled checks are to be kept together.

            4.     Appropriate ledgers are to be maintained for separate accounts within the general fund to ensure that funds are being expended by the activity and/or students raising the funds.


The designated administrator shall submit to the Business Office a monthly summary of transactions of the student activity fund.


All records are subject to municipal audit.  In addition, the Superintendent will implement internal audit checks to ensure compliance with applicable State Statutes, Board regulations, and sound business practices.

Distribution of Interest

Interest will be distributed to the individual funds annually.  It will be a pro-rata distribution of the interest earned by the consolidated fund based on the end-of-the-year fund balance report.

Unexpended Class Funds

All invoices or obligations reimbursed by the Senior Class must be paid out of the Senior Class Fund no later than the opening day of the following school year.  No new obligations may be incurred any later than one week after graduation.  Remaining funds must be disbursed as directed by a formal vote or action of the Senior Class prior to the graduation date.  The unexpended balance in the senior class fund on the second day of the new school year, upon request of the Principal and approval of the Superintendent, shall be reallocated to the activity fund managed by the principal account.

Inactive Accounts

An account will be considered inactive when no activity has taken place in that account for two or more school years.  When the account is classified as inactive, the Principal will request authorization from the Superintendent or designee to allocate these funds to the recognized principal account.

Legal Reference: Connecticut General Statutes
                             10-237 School activity funds

Regulation approved:    April 4, 2017

Newtown, Connecticut

Inspiring Each Student to Excel

3 Primrose St., Newtown, CT 06470
Phone: 203-426-7600