Questions
:1. We are opening a new middle and a new high school this year. Our principal would like to use his district one time start-up funds to buy PE clothes for the ASB. Is this an allowable expenditure from district funds?
2. The same principal/school would also like to give each school ASB $10,000 from his district start-up funds. Is this allowable? His intention is not for this amount to be paid back. Would this be a gift of public funds?
Response: Either of these transactions would be permissible unless they were against district policy or procedure in some way. Remember, that student body funds are actually part of the school district. So, in essence, this is a transfer between programs of the district. Although the student body transactions are in their "own set of books", the student funds are part of the annual audit and are reported as an agency fund within the school district’s financial records when represented at year end.
In our opinion, these transactions would not be considered a gift of public funds. Expenditures of school funds must be for a direct and primary public purpose to avoid being a gift. An approved public purpose must be within the scope of a school district’s jurisdiction and purpose, which does not extend to purposes such as aid to the indigent and the like, or the promotion of social welfare, though these may be lawful public purposes for other agencies. To justify the expenditure of public funds, a school district’s governing board must determine that the expenditure will benefit the education of students within its schools. Expenditures that most directly and tangibly benefit students’ education are more likely justified. Expenditures driven by personal motives are not justified even if they have been a long standing local custom or are based on benevolent feelings. Since both of the expenditures in question will directly and tangibly benefit the students’ education, they appear to be appropriate.
7/3/08
