Not all activity funds are 'active'
By Alice Felts
In these times of financial unrest, having a hefty bank account for extras is a real plus. But certified public accounting firm Cherry, Bekaert, and Holland doesn't see it that way when it comes to some Fauquier County public schools.
Some county schools have tens of thousands of dollars in their student activity funds, while others have considerably less.
School activity fund money is raised by parents and students, and are designed to “generally benefit the welfare of children at the individual school,” according to Andy Hawkins, executive director of budget and operations for the school system.
Parent-Teacher Organizations (PTOs) can raise money and donate it from their own separate account to the schools for materials, supplies and field trips.
Schools also can make money from such things as school photos and yearbooks and place the profits in their school activity account.
While PTO funds do not come under Hawkins' supervision, he said school principals have guidelines and specific procedures for school activity expenditures. “All have been good stewards of the money,” he said.
Maybe too good.
Money raised by schools is supposed to be earmarked for a specific item or event. But, according to the auditors, that money should be spent on the children who raised it, and in a timely manner. Long-term holdings do not benefit those students.
C. Hunter Ritchie Elementary currently has the biggest balance of all of the county schools — almost $410,000 raised by students. According to Hawkins, this money may have been collecting in the school's activity fund for as long as 15 years.
Principal Lee Bell attributes the large account to two main reasons: taking a conservative spending approach and saving for something big, such as playground renovation.
“Times will not always be good,” said Bell. “You spend less than what you earn, and when you spend, you spend wisely.”
Hawkins said that “[$410,000] is a lot of money. Mr. Bell has enough for a playground. A playground should cost somewhere between $60,000 to $100,000.”
In addition to the students' fundraising efforts of $410,000, money also comes from Ritchie's PTO. The organization sponsors a sock hop, fun fair, 5K Walk/Run and various product sales.
Bell said a lot of the proceeds go to technology. Recent purchases include computerized overhead projectors, monitors and software.
In addition, all teachers are reimbursed a pre-determined amount for discretionary spending for classroom supplies.
Families also benefit, as the PTO buys many back-to-school supplies for students, reducing the list of items parents have to purchase.
The school board, however, doesn't seem to think these expenditures are enough.
At a recent school board work session, Scott District representative Maureen Riordan said that if she had known Ritchie's activity fund was so large, she might not have spent as much time and effort helping her children's school raise more money.
The board's finance committee has discussed “the establishment of a budget planning committee at each school to develop a plan for the expenditure of activity funds.”
It was suggested a formal committee would consist of parents, community members and teachers.
Hawkins said that the board has focused on the auditors' recommendations to set a maximum amount each school can hold in its student activity account.
But he does not expect the school board to set a specific dollar limit. Instead, he anticipates a policy to be introduced in which the results of fundraising efforts must approximately equal school activity expenditures in a one-year time frame. Hawkins said schools should not raise more than they will spend.
“Ritchie is the only school with an account out of line,” he noted.
Hawkins believes the school will be told “to cease any fundraising until the account is at a more reasonable level.”
The principals have not been officially informed of the proposed changes to the maintenance of the student activity funds. Regarding Ritchie Elementary, Hawkins said, “Once Mr. Bell knows, he will make the changes.”
E-mail the reporter: afelts@timespapers.com.