Activity Funds: Everyone’s Problem — and Opportunity

 

Student activity funds are a district-wide compliance issue that school business managers must manage with the same oversight and transparency they use for district funds.

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Tom Rossi

 Published November 2025

Money is missing. That’s usually how the conversation starts.

For years, student activity funds sat quietly in the background — until someone asked where the money went.

Oversight was loose, when it existed at all, and funds were often tracked in a notebook. The more advanced schools used spreadsheets. I know because I built one of those spreadsheets for my brother’s school shortly after he became the school principal. 

Back then, money was moved freely, often with little documentation or concern. 

Then came GASB 84, and everything changed. Activity funds have suddenly become a district-wide compliance issue. Auditors are required to ask tougher questions, and business officials are responsible for managing these funds with the same oversight, transparency, and controls they use for district funds. 

The challenge is that these funds differ from district funds. They are managed by schools — support staff, teachers, and administrators — who wear many hats and rarely have any accounting training. And, unlike district funds, they’re not budgeted.

The Systems Problem 

Most of the tools used to manage activity funds were never designed for them or were built decades before GASB 84 was even a thought. As a result, schools often try to fit modern compliance and transparency standards into systems designed for something else entirely. 

The irony is that oversight and transparency shouldn’t mean complexity. The best systems are intuitive. If the system requires days of training, it’s the wrong system.  

When systems are clear, consistent, and easy to use, everyone wins. Staff spend less time fixing mistakes and more time supporting students. The right systems make compliance stronger and work easier.

The best systems are intuitive. If the system requires days of training, it’s the wrong system.

The Human Problem 

Activity funds rely on people who rarely have financial training. Advisors are teachers first, focused on the students and programs. Clerks and principals do their best to be organized, but neither group typically comes from a financial background. They’re managing money on top of everything else, often with tools that make the job harder than it has to be. 

To be clear, your people are not the problem. The systems are. 

Most existing solutions were built for accountants, when schools need effective systems built for non-accountants. Tools that make sense to the people who use them every day. 

When the tools are simple and supportive, people build confidence. And when people are confident, they use the tools.  


The Opportunity 

I often say, “Activity funds are the best financial literacy tool you aren’t using.” And for most school districts, it’s true. 

Every fundraiser, purchase, and budget decision is a chance for students to learn about money, responsibility, and trust. These aren’t simulated classroom activities; they’re real transactions with real dollars, and they have real consequences that directly impact their program.  

When students participate, they see how planning, approvals, and accountability work in practice. They build confidence, take ownership, and start to see how money is managed responsibly. When students own the process, they make better decisions —not just about money, but also about leadership, teamwork, and integrity. 

I am not suggesting you give the students the checkbooks and walk away. Student involvement doesn’t mean less oversight; it means better oversight. It means giving students a structured, transparent system where they can learn to make responsible financial decisions under the guidance of adults who review, approve, and support every step. 

Where to Start: If your district is still using spreadsheets or paper forms to track activity funds, begin by mapping your current process. Identify where confusion or bottlenecks happen—approvals, deposits, or reporting. Then look for tools and workflows that make those steps simpler and more transparent, not more complicated. The goal isn’t to add software; it’s to remove friction so compliance and learning can happen side by side. 


Everyone’s Problem — and Everyone’s Opportunity 

Activity funds touch every part of a school district. They involve students, advisors, school clerks, principals, and business officials. They’re not just a school-level responsibility or a district-level responsibility; they’re a shared responsibility. 

But they’re also a shared opportunity. When systems offer clarity, transparency, and the right level of oversight, everyone wins. Schools stay compliant, districts remain informed, and students gain hands-on experience managing real money with real accountability. 

That’s what happens when your activity funds are managed right —students learn, and everyone else might get a little smarter about money too.

  

   

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