About the Yankee Institute for Public Policy
The Yankee Institute for Public Policy, Inc. is a nonpartisan educational and research organization
founded more than two decades ago. Today, the Yankee Institute’s mission is to “promote
economic opportunity through lower taxes and new ideas for better government in Connecticut.”
Question 5: Student Activity Funds:
monitors such funds? Are income and disbursements verified for accuracy, and
proper usage? Are bank statements reviewed on a monthly basis? Who conducts
the review?
Background: Student activity accounts and other cash-collection
activities are extremely common sources of embezzlement and misuse. These
accounts do not typically involve taxpayer dollars, thus the monitoring of such
funds leaves much to be desired. Consider that school administrators have
stolen children’s candy money, and one secretary responsible for a student
activity fund embezzled $483,000.
Proposed Solution: Although such funds are not part of the school
budget, each fund should be listed along with its income, expenses, and
balances during budget presentations. The grand total of such funds would be
very revealing.
Because theft and misuse of such funds is so common, an independent
source must be available to provide proper oversight. For example, practically
all such funds are controlled at the school level only. The central-office finance
department should be required to oversee income and disbursements. The
town treasurer or a volunteer FAC committee or taxpayer group could also do
it.
Part 5 in our 10 part series to prevent future corruption in Gloucester County. These plans must be enacted by the school board or we are open to wide abuses and theft which costs all of us a great deal of hard earned money.
