Question: We have a new principal who wants to pre-approve all expenditures from ASB. Is this legal? I thought ASB was run by the students?? I thought they were the ones who could approve or deny an expenditure before it was done. Please explain...

Response:  Well, you are both right!!!  All ASB expenditures must be approved prior to expenditure and/or commitment. Regardless of the school type, the principal or designee is responsible for protecting the interests of the students and ensuring that the funds are spent for their benefit.  Who must give that approval differs depending on whether the ASB in question is an unorganized or organized ASB.

ASB organizations have tremendous flexibility and discretion regarding how they may use their funds. The principal and ASB advisors are responsible for ensuring that the funds are used to purchase goods and services that promote the general welfare, morale and educational experiences of the students. In general, ASB expenses that meet these criteria are allowable if they are directly linked to the students’ benefit. Another important point is that the expenditures must be for goods and services other than those which the school district should provide from its own funding sources.

In high schools and middle schools, the students are involved in deciding how the ASB funds are spent. This helps ensure that the interests of the students are protected. Education Code section 48933 tells us that for organized ASB there are three required signatures. These signatures must include a student representative, a board designee (principal) and a certificated advisor. So, the board designee (usually the principal) WILL be one of the people pre-approving the expenditure, but not on his or her own.

In elementary schools, the students are often not involved in the decision making and operation. Few elementary schools/unorganized ASBs have a formal student body organization, though one can be established if desired. Usually, the governing board designates the principal as the primary authority to operate the student activities and authorize all expenses from ASB funds, which is allowed due to Education Code section 48938. However, the principal should designate an alternate/second person to approve the disbursement of ASB funds. So, in this case of an unorganized ASB, an adult (i.e. principal if that is who the board has designated) can be the sole person pre-approving the expenditure, although it does not change what the funds are supposed to be used for.

9/16/08