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Assurance Services • Published 4/29/2019 School Activity Funds: Fun or Fraud?


The Governmental Accounting Standards Board (GASB) has issued Statement No. 84, Fiduciary Activities, which is effective for fiscal years beginning after December 15, 2018. The implementation of GASB 84 will have a major impact on Student Activity Fund (SAF) reporting. 

What Does This Mean for My School District?

School activity accounts will have an enhanced reporting requirement, which may warrant a heightened focus on review of controls, in addition to the revised reporting. School activity accounts are inherently risky due to cash collections and the limited resources available to oversee these transactions at the school level.

What Do I Need to Do?

Since the standard is effective for School Boards for the 2019-2020 fiscal year, School Board officials should account for these funds in non-fiduciary funds. Internal audits of your school activity accounts are key to identifying risks and mitigating monetary losses to the school district.

Questions to Consider:

  • Do you have a risk assessment?
  • Do you have a policy for the number of school activity accounts to be reviewed each year?
  • Do you have a method for tracking the results of your internal audits?

How P&N Can Help

Because of the sheer volume of student activities of many school districts, it is critical to have a plan in place to monitor these accounts and to move them from the fiduciary reporting model. Our team can help with the following:

  • Reviewing your internal policies and procedures for best practices;
  • Assisting with design of controls (including proper authorization of accounts, documentation of expenses, and segregation of duties between approvers and recorders of SAF transactions);
  • Conducting agreed upon procedures on a test basis for cash receipts and disbursements;
  • Implementing changes in financial system to track and report student activity funds in accordance with the LAUGH Guide;
  • Training personnel in proper recording of SAF accounts and transactions.

Contact us today to start a discussion about how P&N can help you implement these new standards. You can also learn more about our experience in the governmental sector here.

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