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School finance update: budget position, textbook fund use and activity fund audit prompt booster-club oversight discussion
Summary
Treasury and finance staff told the board that operating expenditures are generally under budget while some revenue uploads lag; the activity fund audit returned an unmodified opinion, but discussion focused on booster fundraising, third-party fundraisers and how activity funds are managed.
Pulaski County finance staff presented a preliminary budget summary and an audit of school activity funds, telling the school board that most expenditure categories are under budget but some revenue reporting lags because of reconciling delays at the treasurer’s office.
The presenters said the textbook fund carried an apparent balance but cautioned that textbook-adoption costs can exhaust those funds quickly. "Textbook funds are a little bit tricky as far as what we can spend it on," a finance staff member said; the staff said they would check Department of Education guidance for allowable uses.
Auditors issued an unmodified opinion on the activity fund audit, the presenters said, noting that three schools had no comments, three had one comment, and one school had a larger finding that the auditors discussed with staff. The board discussed receipts and disbursements for high school activity accounts and asked whether booster and third-party fundraisers were appropriately recorded.
Board members raised concerns about third-party payment platforms and fundraising that may not pass through official school activity accounts. Finance staff said activity funds should use school cash systems and receipts and that outside booster clubs that operate independently should register and may be required to be 501(c)(3) organizations. "They do have fundraiser forms that they have to fill out," a finance staff member said, describing existing paperwork for boosters that use school facilities.
Board members discussed options including consolidating some small dormant funds, encouraging booster clubs to operate as separate 501(c)(3) entities to reduce the school division’s bookkeeping burden, and reinforcing messaging that school-related purchases should use official school payment channels. Staff said they will look into specifics of certain accounts flagged in the audit and provide follow-up information.
