Effective as of 10/9/2018:
SUMMARY OF ASB INCOME, EXPENSE AND EQUITY ACCOUNTS
ASB 4000 accounts are revenue accounts (income). All ASB sources of income should be deposited and recorded to the appropriate 4000 account.
ASB 6000 accounts are expense accounts. All ASB expenses should be paid and charged to the appropriate 6000 account.
The 3000 ASB General Fund account is an equity account (fund balance reserve account) which reflects the net worth of the ASB.
Ø No income or expense transactions are posted to this account. At the end of the year (June 30th), the net profit or loss (difference between the ASB income and expense accounts) is transferred to this ASB General Fund account.
Ø Additional information regarding this one-time, year-end closing journal entry is outlined in the annual Year End ASB Memo sent out by District Finance.
GUIDANCE
It is recommended that the 3000 ASB General Fund account be between 10% and 20% of the annual budgeted revenue (income) to cover unexpected expenses and losses.
ASB General Fund balances that exceed 20% are discouraged because funds raised are to be expended for the benefit of those students currently enrolled and who have contributed to the accumulation of such funds.
PROCESS
If the ASB General Fund account balance exceeds the recommended level, we recommend the following process:
Ø Have the ASB Advisor and Student Council discuss and make decisions to vote on specific additional expenses. These additional expenses should exceed revenues (income). The ASB Secretary should document these decisions and include the ASB budget changes and additional purchases in the meeting minutes. District policies require signature of approval from the ASB Secretary and ASB Advisor for the ASB meeting minutes.
Ø The purchases should have a long term impact to the school benefitting as many current and future students as possible. Purchases with one time benefits for few or select students or services for students are discouraged (for example, a school dance, DJ, athletic trainer, etc.). Specific questions about allowable purchases may be directed to the Leadership & Learning Department who will consult with the designated committee.
Ø Once all decisions have been noted in the minutes, the ASB Treasurer must revise the ASB budget to reflect the additional expenditures. District policies require signature of approval from the ASB President, ASB Treasurer, ASB Advisor, and Principal for the ASB budget.
If expenses exceed the revenues as planned in the revised ASB budget, the 3000 ASB General Fund account balance will decrease at year-end due to the net loss.
Attachment 1 FCMAT Budget Example
Attachment 2 Example ASB Adopted Budget
Contact: Stacey Seiders, Program Manager :: sseiders@sandi.net :: (619) 725-7125