Question:  I have a question to you regarding a fundraiser being considered. It is a fundraiser to purchase computers and things for our school due to our budget cut. The ASB will be asked if they wish to have this fundraiser, vote and have the minutes reflect their decision for the total amount to be donated to Toll for purchase of those items. The company is Scrip Group Enrollment. They require a voided check to set up our account from ASB and they will electronic deposit any fundraised funds into our account.

Response:  First of all, it is important to re-look at what the general rules of ASB organizations are. ASB organizations have a lot of flexibility and discretion about how they may use their funds, but there are overlying principles that guide what is allowable and what is not. Allowable expenditures are those that promote the general welfare, morale and educational experiences of students.  Allowable expenditures are also those that the students are involved in making the overall decisions.

Prohibited purchases are the opposite:  those that do not directly promote the general welfare, morale or educational experience of students.  These can include salaries or supplies that are the responsibility of the district, repair and maintenance of district-owned equipment, articles for personal use of district employees, expenses for faculty meetings and expenses for parent teach organizations.

Since it is confusing as far as what is and is not allowable, it is critical that districts establish board policy and administrative regulations containing guidelines for their own specific district on what they consider allowable and prohibited expenses.  These policies/regulations should be regularly reviewed and updated as individual questions come up so that they cover the types of items that are specific to your own district.

Based on your question and the information that it contains, FCMAT feels that these are not allowable expenditures because of the following: