1. (1) An LEA or school shall comply with this Section R277-113-9 for all activities provided, sponsored, or supported by a school.
2. (2) An LEA shall ensure that revenues raised from or during activities provided, sponsored, or supported by a school are classified, recorded, and deposited as public funds in compliance with LEA cash handling, program accounting, and expenditure of funds policies as required by Section R277-113-5.

3. (3) An LEA shall:

   1. (a) maintain records in sufficient detail to:

      1. (i) track individual contributions and expenditures;
      2. (ii) track overall financial outcomes; and
      3. (iii) verify compliance with relevant regulations; and
   2. (b) make records of activities available to parents, students, and donors, except as restricted by state or federal law;

4. (4) An LEA may establish LEA specific rules or policies:

   1. (a) designating categories of activities or groups as provided, sponsored, or supported by the school; and
   2. (b) regarding use of facilities or LEA resources.
5. (5) An LEA shall document their annual review of fundraising activities that support or subsidize LEA or public school-authorized clubs, activities, sports, classes, or programs to determine if the activities are provided, sponsored, or supported by a school.

6. (6)(a) An LEA may enter into contractual agreements to allow for fundraising and use of LEA facilities.

   1. (b) An agreement under Subsection (6)(a) shall take into consideration the LEA's fiduciary responsibility for the management and use of public funds, resources, and assets.
   2. (c) An LEA shall review an agreement under Subsection (6)(a) with the LEA's insurer or legal counsel to consider risk to the LEA.

7. (7) An LEA shall comply with this Subsection (7) for any activity not provided, sponsored, or supported by a school:

   1. (a) an LEA shall conduct transactions at arm's length;
   2. (b) an LEA may not co-mingle revenue and expenditures with public funds; and
   3. (c) a public school employee may only provide educational services outside of the employee's regular employment consistent with Rule R277-107.

KEY: school sponsored activities, public funds, fiscal policies and procedures, audit committee

Date of Last Change: July 8, 2025

Notice of Continuation: September 9, 2021

Authorizing, and Implemented or Interpreted Law: Art X, Sec 3; 53E-3-401(4); 53E-3-501(1)(e)