Question: ASB would like to purchase two couches and end tables for the school library. The district does not provide these items, would it be a legal purchase?
Response: Allowable expenditures from ASB funds need to be directly linked to the students' benefit and also must be outside of what must be and has been provided by the school district's general funding sources in the past. There is no "list" of what is acceptable or not (and legal or not), so we always suggest that school districts specify in their ASB policy what is considered appropriate. Also, if the expenditure is for a middle or high school, like yours, the students have to be involved and agree on the decisions of how the ASB funds are to be spent prior to them occurring, with the advisor and principal/designee also approving. For elementary schools, the students’ prior approval is not necessary, but the principal or designee must pre-approve the expenditure.
The following questions should be asked when making a determination of whether or not the expense constitutes an allowable use of ASB/Club funds:
§ Does the expenditure promote the general welfare, morale and educational experience of the students?
§ Have the students agreed to the expenditure? (organized ASB only)
§ Is the expenditure a responsibility of the district?
§ Has the ASB/Club or the district paid for this expenditure in the past?
§ Is the ASB/Club being asked to pay for the expenditure because of district budget cuts?
§ Does the expenditure benefit a group of students?
Based on the limited information provided, this should be an allowable expenditure if the appropriate approvals are obtained and the district does not have board policy or rules in place prohibiting ASB from purchasing furniture. Also remember that if the cost of the furniture is over $500, there are inventory guidelines in place that must be followed. That information can be found in chapter 16 of the FCMAT "Associated Student Body Accounting Manual and Desk Reference", which can be found online at: http://www.fcmat.org/stories/storyReader$911.
Whenever questioning ASB fund expenditures, always remember that students have to approve of all expenditures charged to the ASB funds. That is the major guideline. Secondly, board policy must be followed and there must be a direct benefit to the students. Also, when you are in doubt of appropriate expenditures in any case, including student body funds, it is appropriate to ask your independent auditor as they will be auditing these funds annually and it is best to ensure that they are in agreement when you have new situations such as what you have asked here.
3/27/08
