Board committee discusses activity‑fund balances and disbursement report procedures

District finance staff and board members discussed two recurring finance items at the Sept. 4 committee meeting: apparent inconsistencies in activity‑fund balances between buildings and whether the board should continue receiving a monthly disbursement report listing checks the district already approved.

Activity funds: Board members noted that activity fund balances (student‑raised funds used by clubs and programs) differed between two middle schools for similar programs and asked whether students at both schools have equitable opportunities. Finance staff said activity funds are raised by students for students and are managed separately from board operating funds; timing of fundraisers and the different number of programs at each building can produce different balances. Staff said activity accounts have their own bank account and are not part of the board’s operating disbursement reports. They also said principals and activity directors allocate activity funds and that the district has a longstanding extracurricular committee that reviews club offerings and equity.

Monthly disbursement report: Board members also asked whether the monthly disbursement report — a long list of paid invoices — should remain an action item. Finance staff explained the report historically was provided for transparency and that the items it lists were already approved through purchase orders, payroll or impressed checks. The committee discussed thresholds for purchase order approvals and occasional small invoice overruns (shipping, taxes) that can push an invoice above the original purchase‑order amount. Staff recommended bringing the disbursement report forward as an informational fiscal item with additional background and said they would prepare a memo on how often invoices exceed purchase‑order amounts and for what reasons.

Next steps: the committee agreed to move purchase‑order and payable reports to the consent agenda and to have staff prepare a memo on disbursement procedures, tolerance thresholds for invoice variances and options for consistent building‑level reporting. Finance staff also said they are reviewing activity‑fund practices at the high school, where some programs carry larger multi‑year balances.