This document provides guidelines and discusses issues related to policies, processes, and procedures for Associated Student Body funds. It outlines 10 guidelines for proper use and oversight of public money generated by students. Some common issues found by auditors are then listed, such as lack of controls over cash receipting and fundraising. Examples are given of money mishandled or misappropriated from various school activities and organizations. The document concludes by listing some "hot topics" that auditors focus on to ensure accountability over accounting of public funds.

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11 GGuuiiddeelliinneess
1. Public money, generated by the students or in the
name of students, may be used only for Cultural,
Athletic, Recreational, or Social purposes that are
optional and non credit.
2. Money raised during the school day, and/or on school
property, and/or using school personnel, and/or
school materials is public money.
3. ASB funds are restricted public money and cannot be
used for curricular purposes.
4. Co-curricular is not a legal term. Only curricular and
extra- curricular are defined in the law.
5. Public money cannot be given away for private use.
6. Students and staff must collaborate on the generation
and use of public money.
7. You must have a system to monitor and protect the use
of public money.
8. You must follow the federal, state, school board, and
your own rules about ASB.
9. In a corporate sense, the Principal is the CEO and CFO;
the school board is the Board of Directors.
10. The State Auditor is only one of many regulatory
agencies interested in ASB.
22 IIssssuueess
The Auditor finds: • Poor controls over cash receipting
and fundraising • Lack of note in the student council
minutes • Lack of proper ASB budget process • Lack
of written procedures • Lack of contracts with outside
vendors • Not using official prenumbered district
receipts • Mode of payment not annotated • Not
restrictively endorsing checks immediately • Lack of
reconciliation • No gross profit analysis • No
inventory control • Lack of student and principal’s
approval for ASB expenditures • Lack of support
documentation (records) • The public loses
confidence and votes NO!
33 WWhhaatt GGooeess WWrroonngg??
 $8,443: Student Store bank deposits short from inventory
expectations.
 $????: ASB Advisor paid cash for services at dances, then
counted the money and tore off tickets to match the
deposit.
 $742: Teacher collected money for field trips, deposited
the money in personal account, paid for fees and turned
in the money left over.
 $3,966: Drill team advisor deposited money into
personal account and paid for activities such as camp.
 $372: Baseball coach failed to turn in all the proceeds
from a soft drink sale at a fund raising activity.
 $10,000: Cash misappropriated from school safe over the
weekend.
 $15,000 & $8,000: Blending of fundraising with Booster
Club activities (Sports team & ASB).
 $1,010: Class T-shirt sales not reconciled
44 HHoott TTooppiiccss!!
Expect the Auditor to stress accountability over
accounting. How are you raising and spending
public money in the students' best interest?
 Cheer uniforms & other clothing items
 The suds from car washes
 Raffles
 Summer athletic programs
 Donations by Parent Support Groups
 Sales tax collection and submission.
 Charitable fund raising
 General Fund fundraising
 Staff accepting incentives
 Public vs. Private Fundraising