CHAPTER 1. ACCOUNTING FOR SCHOOL FUNCTIONS; EXTRACURRICULAR ACCOUNT
IC 20-41
ARTICLE 41. EXTRACURRICULAR FUNDS AND
ACCOUNTS
IC 20-41-1
Chapter 1. Accounting for School Functions; Extracurricular
Account
IC 20-41-1-1
"Treasurer"
Sec. 1. As used in this chapter, "treasurer" includes an assistant
treasurer or a deputy treasurer.
As added by P.L.2-2006, SEC.164.
IC 20-41-1-2
Accounting as separate funds
Sec. 2. Any self-supporting programs maintained by a school
corporation, including:
(1) school lunch; and
(2) rental or sale of textbooks;
may be established as separate funds, separate and apart from the
general fund, if no local tax rate is established for the programs.
As added by P.L.2-2006, SEC.164.
IC 20-41-1-3
Custodian responsibilities
Sec. 3. (a) A person who has charge of the collection, custody,
and disbursement of funds collected and expended to pay expenses
incurred in conducting any athletic, social, or other school function,
the cost of which is not paid from public funds, shall:
(1) keep an accurate account of all money received and
expended, showing the:
(A) sources of all receipts;
(B) purposes for which the money was expended; and
(C) balance on hand; and
(2) file a copy of the account with the township trustee, board
of school trustees, or board of school commissioners within two
(2) weeks after the close of each school year.
(b) An account filed under subsection (a)(2) is a public record
open to inspection by any interested person at any reasonable time
during office hours.
As added by P.L.2-2006, SEC.164.
IC 20-41-1-4
Forms
Sec. 4. (a) All forms and records for keeping the accounts of the
extracurricular activities in school corporations shall be prescribed
or approved by the state board of accounts. The records and affairs
of the extracurricular activities may be examined by the state board
of accounts when the state examiner determines an examination is
necessary. The forms prescribed or approved for keeping these
accounts must achieve a simplified system of bookkeeping and shall
be paid for, along with the bond required in this chapter, from the
general fund.
(b) The funds of all accounts of any organization, class, or activity
shall be accounted separately from all others. Funds may not be
transferred from the accounts of any organization, class, or activity
except by a majority vote of its members, if any, and by the approval
of the principal, sponsor, and treasurer of the organization, class, or
activity. However, in the case of athletic funds:
(1) approval of the transfer must be made by the athletic
director, who is regarded as the sponsor; and
(2) participating students are not considered members.
All expenditures of the funds are subject to review by the governing
body of the school corporation.
As added by P.L.2-2006, SEC.164.
IC 20-41-1-5
Requirement of treasurer
Sec. 5. (a) A public school must have a treasurer for purposes of
this chapter. The treasurer must be:
(1) the superintendent or principal of the particular school;
(2) a clerk of the school corporation; or
(3) a member of the faculty appointed by the superintendent or
principal.
This designation must be made immediately upon the opening of the
school term or the vacating of the office of treasurer. Claims shall be
filed and paid under sections 7 and 8 of this chapter. The employing
or appointing officials of a school may appoint and engage a school
treasurer or clerk.
(b) A school corporation may appoint one (1) or more assistant or
deputy treasurers.
(c) A treasurer is not personally liable for an act or omission
occurring in connection with the performance of the duties set forth
in this chapter, unless the act or omission constitutes gross
negligence or an intentional disregard of the treasurer's duties.
As added by P.L.2-2006, SEC.164.
IC 20-41-1-6
Bond
Sec. 6. (a) The treasurer shall give a bond in an amount fixed by
the superintendent and principal of the school approximating the
total amount of the anticipated funds that will come into the
possession of the treasurer at any one (1) time during the regular
school year. Bonds shall be filed with the trustee or board of school
trustees. The surety on the bonds must be a surety company
authorized to do business in Indiana. However, the requirement for
giving the bond and the requirement to deposit the receipts in a
separate bank account, as required in section 9 of this chapter, do not
apply to any school for which the funds, as estimated by the
principal, will not exceed three hundred dollars ($300) during a
school year.
(b) The requirements of this chapter may be fulfilled by providing
a comprehensive bonding instrument, including a single blanket
position bond, for all extracurricular treasurers. A comprehensive
bonding instrument is acceptable instead of individual separate
personal position bonds.
As added by P.L.2-2006, SEC.164.
IC 20-41-1-7
Responsibilities of treasurer
Sec. 7. (a) The treasurer has charge of the custody and
disbursement of any funds collected by a collecting authority and
expended to pay expenses:
(1) approved by the principal or teacher in charge of the school;
(2) incurred in conducting any athletic, social, or other school
function (other than functions conducted solely by any
organization of parents and teachers);
(3) that cost more than twenty-five dollars ($25) during the
school year; and
(4) that are not paid from public funds.
(b) The principal or teacher in charge of the school shall designate
a collecting authority to be in charge of the collection of any funds
described in this section. Upon collection of any funds, the collecting
authority shall deliver the funds, together with an accounting of the
funds, to the custody of the school treasurer. The principal may
designate different collecting authorities for each separate account
of funds described in this section.
As added by P.L.2-2006, SEC.164.
IC 20-41-1-8
Treasurer; duties; accurate accounts; reports
Sec. 8. (a) The treasurer shall keep an accurate account of all
money received by the collecting authority and expended, showing:
(1) the sources of all receipts;
(2) the purposes for which the money was expended; and
(3) the balance on hand.
A copy of the report, together with all records and files of
extracurricular activities, shall be filed as required under section 3 of
this chapter.
(b) However, in a school that has two (2) or more semesters in any
one (1) school year, the treasurer of the school shall file a copy of the
treasurer's financial report of receipts and disbursements with the
township trustee, board of school trustees, or board of school
commissioners not more than two (2) weeks after the close of each
semester. Records and files of extracurricular activities for the entire
school year shall be filed with the last financial semester report of
any one (1) school year.
(c) A copy of the report shall be filed with and kept by the city
superintendent having jurisdiction and the county superintendent
where the superintendent has jurisdiction.
(d) The records under this section shall be kept for five (5) years,
after which they may be destroyed.
As added by P.L.2-2006, SEC.164.
IC 20-41-1-9
Deposits and accounts
Sec. 9. (a) The treasurer shall deposit all receipts in one (1) bank
account. The receipts shall be deposited without unreasonable delay.
The account is known as the school extracurricular account. The
records of each organization, class, or activity shall be kept separate
so that the balance in each fund may be known at all times.
(b) The money in the school extracurricular account may be
invested under the conditions specified in IC 5-13-10 and
IC 5-13-10.5 for investment of state money. However, investments
under this section are at the discretion of the principal. The interest
earned from any investment may be credited to the school
extracurricular account and need not be credited proportionately to
each separate extracurricular fund. The interest earned from the
investment may be used for any of the following:
(1) A school purpose approved by the principal.
(2) An extracurricular purpose approved by the principal.
(c) Amounts expended under this section for the purposes
described in this section are in addition to the appropriation under
IC 20-26-5-4(3).
As added by P.L.2-2006, SEC.164.