It is a best practice in school districts to maximize revenues that are supplemental to property taxes and Foundation School Program state aid. Funds generated by campus activities and student club activities play a significant role in providing supplemental revenue sources for the benefit of students and staff across nearly all of the 8,500 plus campuses. While these activities are successful in most instances, financial losses can occur on occasion. Questions to ask regarding proactive monitoring and controlling for instances where potential financial losses may occur include:
- How does your school district sufficiently monitor planned campus activity and student club activities to identify and minimize potential financial losses (where costs exceed cash receipts generated)?
- Are designated school officials required to promptly report all instances where potential costs may exceed receipts (losses) to allow executive management the opportunity to actively monitor and apply loss prevention measures before the conclusion of any activities in question?
- Does your school district have policies and procedures that specify how financial losses from campus activity and student club activities are to be recouped or charged against other financial assets and/or future cash receipts?
- Are there any instances where the district has elected to subsidize certain campus activities or student club activities in accordance with the school district’s policies and procedures? When is the last time the school district has reviewed its policies and procedures in this area with the district’s attorney-on-retainer?
- Following financial losses has the district considered decreasing the number, and/or frequency of campus activity and student club activities?
- When financial losses have occurred has the school district provided training on campus activities and student club activities best practices for financial management?
- When financial losses have occurred has the school district increased monitoring by and reporting to executive management?
- When financial losses have occurred has the school district amended policies and procedures, if necessary, related to campus activity and student club activities?
- Following financial losses has the district modified or removed certain employees’ authorization to be directly involved in campus activity and student club activities?
- Are school employees held personally responsible for financial losses, in certain scenarios, for failing to provide prompt and sufficient notice about potential financial losses?
Campus activities and student club activities play an essential role in promoting increased engagement by students, staff and parents not to mention providing supplemental revenue sources. These activities also serve great teaching moments as students gain insights on entrepreneur opportunities and good money management practices. School districts should do everything feasible and reasonable to promote these activities and ensure adequate controls are in place to ensure supplemental revenues are maximized by minimizing the risk of any financial losses by individual fund-raising activities.