Question:  I have recently been informed that our ASB's have received checks from CIF that we are supposed to pay coaches, gate ticket people, scorekeepers, janitors, and others out of.  From Chapter 15 of the ASB accounting manual, these people seem like they should be "employees" of ASB, and their payments should be made from payroll. At the very least, these people should be paid as a contracted service. 

Response: Your line of thinking is correct. When people are paid to assist with ASB operations, they are compensated either as an employee or as a consultant. The IRS is the agency with the regulations that determine who gets paid as what. Chapter 15 covers the information you need to make that determination. Because the CIF is sending money to the ASB, but it is the ASB paying the employees, the ASB/school district must follow the legal IRS rules.  If it were CIF paying the coaches, gate ticket people, scorekeepers, and janitors directly, and thus not sending the ASB any money, their processes and procedures are their own.