School Extra-Curricular Finances Under Heavy Scrutiny
Most schools have far more money flowing through their extra-curricular activities than you could imagine. This puts them at serious risk of loss.
The State Board of Accounts has some very definitive rules for how to handle the accounting for extra-curricular activities (ECA). The reason is simple: without specific policies and procedures in place—and good training of personnel—there is a substantial risk of loss of revenues from ticket sales, concessions, fundraisers, and other non-educational school activities.
This is important because in a typical large high school, the amount of ECA funds may exceed one million dollars during the school year. Even if only seven percent is lost through theft, disappearing inventory, bad bookkeeping, etc., that means there is $70,000 less in funds that would otherwise be available for student benefit—year after year. No wonder you often see headlines in Indiana and other states about embarrassing ECA investigations and scandals.
Bookkeeping Plus is committed to helping schools discover and minimize their areas of ECA risk. If your school is not in compliance with SBOA standards or lacks the necessary internal controls, give me a call and I’ll be happy to talk it over with you. —Beth A. Marsh, CEO