Historically, little attention has been given to accounting for
activity funds in school districts. The nature of activity
funds, however, makes them especially vulnerable to error,
misuse, and fraud. In addition, activity funds often total to
large sums of money, especially when capturing the amounts that
flow through an educational organization in the form of school
board funds, student-generated funds, receipts and disbursements
related to athletics, and the myriad co-curricular and
extracurricular events sponsored by school districts today. As a
result, this revision of this handbook recommends policies and
procedures1 for improving controls over these funds and promotes
capturing all student activity-related monies in the district's
financial records. Please note, however, that the guidelines in
this chapter are minimum controls on which local school
districts may expand. In addition, these guidelines are not
generally viewed as mandated in any jurisdiction, so each state
may have imposed greater or less