Edited Release
01/31/23
Iowa State Auditor Rob Sand is urging community school districts and employees to address the collection, handling, and disbursement of student activity funds. These funds are collected through student-related activities such as admissions, fundraising events, or other co-curricular or extracurricular activities.
In a release from the Auditor’s office, Sand said the advisory is being issued because his office has found a substantial amount of misuse of student activity funds, as well as a general misunderstanding of how these funds should be collected and disbursed in accordance with Iowa law. He added that student activity funds are public funds, the property of the school district, and must be used to benefit the public.
Over the last ten years, Sand’s office found over $268,000 in student activity funds that were not deposited, improperly deposited, collected, or disbursed during special investigations on the use of student activity funds in 15 Community School Districts.
The investigations also identified bank accounts held outside of the Districts which were administered by employees for student activities such as wrestling, basketball, and other sports. In some instances, the account was operated as a separate entity to provide camps not associated with the CSD.
The Auditor of State Office recommends that community school district boards review the Department Of Education guidance with their faculty and staff on an annual basis.
