The purpose of this school committee policy is to comply with the enactment of a state law on student activity accounts as codified in Section 47 of Chapter 71 of the General Laws of Massachusetts (MGL) passed in 1996.
A program of co-curricular activities established by the School Committee should ensure that young people have an opportunity to take part in co-curricular and extra-classroom experiences; should provide efficient procedures for their creation, operation, and demise; and should outline a system for the safeguarding, accounting, and internal control of extra-classroom activity funds.
The School Committee authorizes the principals to receive money in connection with the conduct of authorized student organizations and legitimate co-curricular activities (field trips). The School Business Administrator shall develop operation procedures and guidelines for these accounts and conduct annual internal audits of these accounts.
A student activity account shall only be used for monies raised by approved student organizations and expended by those students for their direct benefit. At no time shall accounts be used to benefit staff.
A. Bank accounts will be issued via the Town Treasurer at a bank with a branch in Lexington.
a. All accounts shall be interest bearing as allowable under banking services selected by theTown Treasurer;
b. Two Accounts shall be established:
i. Savings/Depository Account:
1. There will be no maximum amount set for the savings/depository account.
2. All receipts shall be deposited with the Town Treasurer and credited against abuilding designated student activity savings/depository account.
ii. Checking Account: Each school principal will be provided with a checking account for expenditure purposes.
1. The maximum a school can have in its checking account at any time for an Elementary School, $3,000; Middle School maximum, $10,000; and High School maximum, $25,000.
2. No individual check or series of checks from the Student Activity Checking Accounts shall be written over $3,000. Vendors owed more than this amount by contract or agreement shall have deposits made mid-contract/agreement payments made timely through the Town Warrant process or use the district credit card procedures. Writing multiple checks to circumvent this clause will cause the checking account to be frozen and check writing privileges to be revoked.
3. Deposits into the checking account shall be made under the direction of the Town Treasurer.
c. Expenditures
i. All expenditures shall be reported and recorded under the Town's financial system and follow all other school committee policies that apply and be submitted to School Accounting Manager timely;
ii. Expenditures from the savings/depository account are encouraged since these will pass through the warrant process prior to the check being issued.
iii. Expenditures from the checking account, while discouraged are necessary in the following circumstances: Town warrant process will not meet payment deadline, Town procurement card will not be accepted, and attendance is unknown until day of event. Documentation of checks written shall be submitted to the Finance Office within three business days of the check being written.
B. Reporting and Record Keeping:
a. The School Business Administrator shall provide a Student Activity Manual to all employees upon hiring and distribute updates to all employees as necessary providing guidelines and procedures for all aspects of this policy;
b. Principals, faculty, and staff shall comply with this policy, and the guidelines and procedures provided in the Student Activity Manual.
c. Principals shall submit monthly reconciliations to the School Finance Office for all banking activity within 30 days of receipt of the monthly bank statements. The School Finance Office will reconcile all banking activity against the town financial system and submit full reconciliation package to the Town Treasurer.
d. The School Business Administrator shall conduct an annual internal audit of each Student Activity Account to document compliance with this policy.
C. The Superintendent must approve all student organizations requiring student activity accountsunder each building fund.
a. Students will follow the requirements for forming a student organization under School Committee policy.
b. Students will recommend the establishment of Student Activity Accounts to the buildingPrincipal.
c. The Principal, in turn, will make a recommendation to the Superintendent of Schools.
d. The accounts must be specific to a student organization.
e. Discretionary or commingled accounts will not be allowed under this policy.
D. The interest earned and any audited undesignated fund balance in each school's student activity fund shall remain in the account and be recorded as a separate line item by the building Principal. These funds shall be used to cover the following expenditures without requiring further approval from the School Committee:
a. To cover the cost of periodic outside audits of the accounts;
b. To purchase forms and supplies related to maintaining the student activity agency account by the school;
c. To reimburse the Town or pay directly for any banking fees associated with the accounts, or the acceptance of credit cards, or other online payment option that may become available;and
d. To cover the cost of a student(s) attending a class or school function when students are charged for such but the district financial assistance policy determines the family is unable to cover such expenses.

Lexington Public Schools, Lexington MA
Adopted by Lexington School Committee: July 2015