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The Texas Education Agency defines activity funds as funds consisting of resources received and held by the school as trustee to be expended or invested in accordance with conditions of the trust. Specifically, they are funds accumulated from various school-approved money-raising activities and the receipt of student dues or fees, commissions, investment interest and donations. These funds are to be used to promote the general welfare of the school and the educational development and morale of all students. All funds collected by school district personnel from students are defined as activity funds and must be handled through the activity funds accounts.
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Major Classes of Activity Fund Operations
Activity funds historically have been accounted for by school districts in various fund groups: general fund (199), special revenue funds (192 and 461) and agency funds (865). A school district should consider the following questions to determine the proper method and fund in which activity funds should be accounted:Does local board policy allow for recall of excess or unused fund balances into the general fund for general school district use? If so, these activity funds should be accounted for in the general fund, and revenues and expenditures should be budgeted.
Do other persons besides the students involved in the activity fund (teachers, sponsors, principals, administrators, etc.) have access to activity fund? If so, this money should be accounted for in Funds 199, 192 or 461 - Campus Activity Funds.
Do financial decisions of the funds rest solely with the students? If so, this money should be accounted for in Fund 865 - Student Activity Account which serves as an agency account for student club or class funds.
If funds are received from teachers or other employees as contributions to a "flower fund" or break-room fund, those funds would be categorized and accounted for as an agency fund (Fund 877).
If funds are received from a donor or booster organization and that donor or organization has designated a specific purpose for the use of those funds, the district should spend the funds according to the specific purpose.
Cocurricular vs. Extracurricular Activities
- Activity funds direct and account for money that is used to support cocurricular and extracurricular student activities.
- Cocurricular activities are school-sponsored activities that directly add value to classroom instruction and curriculum.
- Extracurricular activities include other district-directed activities, such as athletics and other nonacademic competitions.
Article on Managing Activity Funds
