**DIBA - STUDENT ACTIVITY AGENCY ACCOUNTS** **Last Updated Date:** 02/25/2014 **Adoption Date:** 01/10/2006 In accordance with M.G.L. Ch. 71, S. 47 (as amended by Chapter 66 of the Acts of 1996), a school principal may receive monies in connection with the conduct of particular student activities and must deposit said monies via the school business administrator to the town treasurer. The town treasurer shall maintain an account for each school entitled the “                      School Activity Agency Account.” Each school principal may maintain a checking account for expenditure purposes. Deposits into the checking account shall be made from each school’s municipal student activity agency account to the extent monies are available in said account. The maximum a school can have in its checking account at any time is as follows: •           Elementary schools:    $5,000 •           Middle school:            $25,000 •           High school:                $25,000 The checking account shall be maintained as an imprest fund and may be periodically replenished via the submission of a warrant to the town treasurer. The warrant may also be used in the event of expenditures which exceed the checking account limit but are within the available funds in the municipal agency account. The checking account must be established with a financial institution authorized to conduct business in the Commonwealth of Massachusetts. The interest earned on each municipal student activity agency account shall remain in the account and be recorded as a separate line item in the records kept by the school principal or his/her designee for that school. The interest shall be used to cover the following types of expenditures without requiring further approval from the School Committee: 1.         The cost of periodic, independent audits of the accounts; 2.         The cost of forms, supplies and equipment to maintain the financial records of the accounts; 3.         The cost of a student participating in a class or school function for which students are charged and the principal determines that the family is unable to pay such a charge; 4.         The cost of recognition/refreshments for parent/student activities and for volunteers who have helped to support student activities. In the event that the interest generated by these accounts is insufficient to cover such expenditures, the School Committee may elect to include these expenditures in its budget. The superintendent or superintendent’s designee shall establish financial record keeping guidelines that are consistent with generally accepted accounting principles. The superintendent or superintendent’s designee shall ensure that an annual written report is prepared by each school principal and submitted to the School Committee. The report shall be submitted no more than ninety (90) days after the end of the fiscal year and shall summarize the revenues and expenditures of the account, including the use of all interest income. **Policy References:** M.G.L. Ch. 71, S. 47