1‘ ‘V - ’7 ‘ 1": 1J4: A'.‘ 'P 1 I). '“o LIBRARY e I Michigan State » University bV‘ESI.) RETURNING MATERIALS: P1ace in book drop to LIBRARIES remove this checkout from w your record. FINES. wit] be charged if book is returned after the date stamped be1ow. y .4 ACTIVITY FINANCES AND ACCOUNTING LANSING EASTERN HIGH SCHOOL LANSING, MICHIGAN by F. D. Manz A PROBLEM Submitted to the Department of Education of Michigan State College in partial fulfillment of the requirements of the degree MASTER OF ARTS Department of Education 1941 M.“ ’ I .E eriivavrsfi mam '3, ,.'-TE;<:A3.5 czmaa "'-- 1' "'Z'“ s:.*,.. I ."‘ I J 1* \ tower EuLCATION JHHAHiES W'JFBJQN 5 T 5 ,1": ‘1, ' . ,~ M: i‘M'a A *" rt UNIVERS‘TY Mur'H :JRF’TM- 1 MS U5 ‘ If) ACKNOWLEDGEMENTS Dr. L. J. Luker — Adviser Dr. F. W. Stemple - Techniques Dr. C. V. Millard - Encouragement Chapter I. II. III. IV. TABLE OF CONTENTS THE PROBLEM AND DEFINITIONS OF The Problem . . . . . . . . Definitions of Terms Used . Limitations of the Study . . Organization of Remainder of THE ACTIVITY TICKET . . . . . The Installment Plan . . . . Allocation of Funds . . . . Activity Budget . . . . . . CENTRAL ACCOUNTING SYSTEM . . The High School Treasurer . TERMS USED How the Accounting System Functions . . EXTRA-CURRICULAR ACTIVITIES . Methods of Financing Activiti Accounting for Athletic Funds SUMMARI AND CONCLUSIONS . . . Summary . . . . . . . . . . Conclusions . . . . . . . . O O O O O O 63.... BIBLIOGMPIIY ~ 0 O O O O O O O O O O O O O O O O O O Page COOSPNH 10 18 21 24 25 27 48 49 52 59 59 65 65 20. LIST OF FIGURES Installment Payment Collections by Home Rooms Checking Installment Payments by Home Rooms . Installment Payment Collections for the Annual Activity Budget . . . . . . . . . . . . . . . Treasurer's Deposit Slip, Original Copy . . . Treasurer's Deposit Slip, Duplicate Copy . . Treasurer's Activity Deposit Summary . . . . Bank Deposit Slip, Original Copy . . . . . . Bank Deposit Slip, Duplicate Copy . . . . . . Activity Withdrawal Slip . . . . . . . . . . The Voucher Check . . . . . . . . . . . . . . Voucher Check, First Carbon . . . . . . . . . Voucher Check, Second Carbon . . . . . . . . Check Register and Book of Original Entry . . Bookkeeping Machine Ledger Card . . . . . . . Account Balances, Treasurer's Monthly Report Activity Accounting Record . . . . . . . . . Athletic Receipts and Disbursements Report . "Home“ Athletic Contest Report . . . . . . . “Visiting“ Athletic Contest Report . . . . . 11 Page 14 16 19 22 28 29 51 32 56 57 4O 45 45 51 54 55 56 CHAPTER I THE PROBLEM AND DEFINITIONS OF TERMS USED The purpose of this investigation has been two fold. On the one hand, the purpose has been to analyze the central accounting systems used in large senior high schools to record systematically incomes and expenditures of school activity funds; and on the other hand, the pur— pose has been to select from the accounting systems studied the best techniques and apply them to the central accounting system for activity finances of Lansing Eastern High School, with necessary procedures and forms. The Problem Stgtgmgnt 91 the ngplgl, To prepare a record and outline a plan for collections from the sale of activity tickets to be sold on the installment plan; to ascertain the best central accounting system to record activity finances of Lansing Eastern High School, to set up an accounting system, with necessary procedures and forms; and to prepare a uniform accounting record for each extra- curricular activity. Importance g; the study. All extra-curricular activities and many curricular activities involve money transactions. A large high school has more diversified and pretentious activities, which require more handling of money and more bookkeeping records. The management of the mone- tary affairs for the maintenance of the regular courses of instruction are properly the business of the board of edu- cation and the superintendent of schools. The providing of money for the maintenance of extra-curricular activities becomes the burden of the principal with the help of the teaching staff. This study of activity finances and ac- counting gives the best method of keeping accurate records for all transactions that take place at Eastern High School, with a proper control of these transactions. The study has suggested safeguards for funds. There should be no more muddled accounts to embarrass teachers who claim they have no money sense, and who use this excuse as a reason to be excused from club and other extra-curricular activities, so essential for the maintenance of a good school progress. Definitions of Terms Used Curricular activity. Curricular activity is any activity within the high school program for which credit toward graduation is granted. Extra-curricular activity. Extra-curricular activity ' is any activity, directly or indirectly connected with the high school program, for which no credit toward graduation is granted. . Activity ticket. An activity ticket is one which entitles the pupil to attend many or all, or participate in many of the school's activities. Activity finances. Activity finances refers to all finances, including incomes and expenditures, of a high school, contributed in whole or in part by the pupils of the school. Activity finances in this report refers to all finances for which no direct appropriation has been made by the board of education for the Operation of activities. Central accountigg system. A central accounting system is a system whereby a member of the faculty, who is especially qualified is chosen to act as a general school treasurer. It is the duty of the treasurer to set up a suitable system of accounts, and to record all money col- lected and disbursed, and disburse on proper authorization. Lansing Eastern Hygh Sghool. Lansing Eastern High School is a senior high school of the “A“ class, located in Lansing, Michigan with an enrollment of 1880 pupils. General Organization Ticket. This is the name of the activity ticket used at Eastern High School. General organ- ization ticket is synonymous with the term activity ticket. 3 High school. The term high school is used in this report to mean a secondary school with an enrollment of not less than seven hundred pupils. Installment pigg. An installment plan refers to a method of payment whereby a pupil is given an opportunity to pay for an activity ticket with a nominal payment each week for a period of weeks or months. Limitations of the Study A comprehensive study has been made of materials found in books in local libraries. All references to ac- tivity finances published in magazines in recent years have been listed. Whenever the magazines were available the articles were studied for information needed in making the study. Bulletins published by educational organizations were helpful, especially, Intramural and Interscholastic Athletics,1 and the Student Council Handbook.2 The writer has drawn heavily upon his experiences of more than twenty years in handling activity finances in a large and a small high school. For nine years he had charge of the activity finances of a township high sdhool in Illinois with an 1P. Roy Brammell, Intramural and Interscholastic Athletics. (Washington, The United States Government "Pr""1'n"tin‘g‘bfrice, 1955), pp. 81-99. 2Ellen Boothroyd Bro e and Paul B. Jacobson, Student Counqgl Handbook. Berrien Springs, Michigan The National Association of Secondary School Principals, 1940), pp. 154-159. ' 5 enrollment of four hundred pupils. For the last twelve years he has been the treasurer of a high school that has grown from 1200 to 1880 pupils during the same period. The writer prepared a questionnaire during the fall of 1940 on activity finances, which was to be mailed to all large high schools of this and bordering states. The in- ‘formation was to be used in the preparation of a thesis on activity finances. The questionnaire was barely finished when a similar one was received from a high school teacher in Grand Rapids, asking for practically the same information. He was going to use the material for the preparation of a thesis toward the requirements for a Master's Degree at the University of Michigan. Since a similar study was being made, and the requirements for a Master's Degree in Education at Michigan State College had been changed, permitting the substitution of a problem for a thesis, this study has been limited to published materials. Later, it is possible, the high schools of Michigan may profit by the Grand Rapids teacher's study, by the in- troduction of improved methods of accounting for activity finances. Activity finances do not wait for studies to be made. From the information and records available, the methods of accounting for funds at Eastern High School will be based on the best practices of the high schools of the nation. Organization of Remainder of the Problem The adaption of various plans for the sale of activity tickets by many administrators is probably an indication of the value of the ticket to the extra-curricular program. In- formation gathered from 371 schools showed that 154 or forty- two per cent employed an activity ticket.1 Fifty-four letters were sent out to schools in all sections of the North Central Association by a faculty committee of the Bloom Township High School, Chicago Heights, Illinois. Fifty—three schools res- ponded and thirteen indicated that the installment sale of tickets had proven satisfactory. It may readily be seen that approximately twenty-five per cent replying were using a definite installment plan of payment. While articles have been written describing the advantages of the installment plan of payment, very little has been written to describe the actual methods for making and recording the collections. Paying for the activity ticket on the installment plan has usually been conducted by the sale of stamps. Later in this study, the stamp method will be described and.compared.with the method used at Eastern High School. The actual forms used for collections and the methods of recording the pay- ments are described and illustrated. W Ibid. , p. 141. A copy of a model activity budget has been included in the study and has been described briefly. Less emphasis has been placed on the budget than other phases of this study. The duties and responsibilities of the school treasurer have been given prominence. Records used by the treasurer to reduce his work to a minimum have been described. Duties and responsibilities of the pupils who assist the treasurer have been discussed with their edu- cational implications. Reports and forms used, and the methods of recording transactions are described in detail. The advantages of the central accounting system from the standpoint of the administrator and the classroom teachers are listed. A uniform record has been prepared for the use of all extra-curricular advisers and treasurers of their activities when the funds are small. The athletic program usually involves funds in excess of the total of all others. For this reason the recording of transactions and the method of distribution of incomes and expenditures are described in detail. Forms illustrated are many of those used at Eastern High School; others are forms that should be in- cluded in a good activity program, but this does not imply that all are used. No attempt will be made to distinguish between forms now in use at Eastern High School, and those that should be included to improve activity finances and accounting. The activity ticket or the general organization ticket as it is called at Eastern, and its collection on the installment plan will be discussed in the next chapter. The educational value of pupil participation in the collec- tion will be described. CHAPTER II THE ACTIVITY TICKET In recent years many schools have sponsored the sale of activity tickets which entitle pupils to attend many or all, or participate in many of the school's activities. The activity ticket at Eastern High School (general organization ticket) admits the pupil to all athletic contests, and pract- ically all other activities of the school. Eligibility for school awards is contingent upon the ownership of an activity ticket. The activities included in the purchase of the ticket and the allocation of funds are discussed later. It is not the purpose at this time to discuss the advantages of the activity ticket, but rather to describe methods for the collections of funds on the installment plan. The activity ticket at Hanover Center.1 The account of a project of the Hanover High School, Hanover Center, Massachusetts, is taken from the December, 1939, Student Life. The student council sponsors an activity ticket which may be purchased any time be- fore the first of November for three dollars, or on the installment plan of ten cents a week for thirty-three weeks, beginning the first week of school in September. This ticket providing it is paid.up to date, ad- mits to all athletic contests and to three dances, supported by the council as invit- ation affairs, to which graduates of the school and their friends are admitted, as ———-—-—T———_— Ibid., p. 147. well as students. The ticket also admits to one play, all special assemblies, covers donations and class dues, and provides each holder with a copy of the school annual. Student ticket salesmen in each home room cooperate with the council in selling seals each Tuesday to those who are buying on the weekly payment plan. The past year about seventy per cent participation was claimed for the support of a completely paid up student ticket. The Stamp Plan at Schenectady, New York.1 The stamp plan, originated in 1935 by the student council of Nott Terrace High School, Schenectady, New York, is a variation of the activity-ticket plan. Stamp books are issued to all clubs and organizations that receive money from the budget. These stamp books are purchased by the individual members of each club. The stamps are used as currency for all the extra—curricular activities of the school. For example, a subscription to the school newspaper, Terrace Tribune, costs four stamps, and admission to the night football games cost four stamps. The sponsor of each club is required to submit an up-to-date list of members to the stamp committee of the student council. Each home room treasurer receives the money for the stamp books and hands in a list of the paidpup members each week. The Installment Plan No seals or stamps are used in selling activity tickets at Eastern High School. The home room solicitor records the payments made on the home room card and the only record of payment held by the pupil is the ticket issued at the beginning of each month until final payment 11bid., p. 149. 10 11 is made. During the first year activity tickets were sold, payments were made to the home room teacher or a represent- ative appointed by the home room membership. This plan proved very unsatisfactory from the accounting stand point as it usually required two or three days to receive final reports for the week from the home room teachers. Plans for the sale of the activity ticket on the installment plan were changed in 1931 and the present method is only a slight modification of the original. Pupils are chosen by the school treasurer, usually members of his classes, the second day of school in Sept- ember. All pupils participating in the collection and sale of tickets are appointed by the school treasurer. Pupils report to the home rooms to which they have been assigned, for the first collection, at the beginning of the home room period on Friday of the first week of school. The collections for the remainder of the collection period are made during the home room period on Tuesday of each week. Each home room teacher is asked to cooperate with the pupil assigned by the treasurer, and is urged to appoint other pupils from his home room to assist with the work is necessary. Three monthly tickets and a coupon book are issued by the time the last payment is made. The September ticket admits the pupil to all football games and other activities 12 during the month, and is issued when the initial payment is made. The October ticket, good for all activities during the month will be issued the first week of the month, if all September payments and the first October payment have been made. The November ticket, good for all activities during the month will be issued the first week of the month, providing all September, October and the first November pay- ments have been made. A coupon book, admitting the pupil to the remaining activities for the school for the current year, will be issued on the fourteenth period, usually the first A week in December, providing fourteen payments have been made. A list of the dates for collections and the names of all collectors is mimeographed and sent to all home room teachers, to inform the teachers of the collection dates and to indicate the names of the pupils to be excused to assist with the work. A pupil purchasing an activity ticket agrees to make an initial payment of twenty-five cents and to pay twenty-five cents per week, until the purchase price of three dollars and fifty cents has been paid. No pupil is required to sign a pledge to make a payment each week, and he is permitted to discontinue payments at any time. If he makes one payment he is entitled to all the activities for the month of September. Unless five payments have been made the October ticket will not be issued. Providing nine payments 13 are made by the first week in November he is entitled to all the benefits of the November ticket. The coupon book will be issued when fourteen payments have been made. Figure 1 illustrates the form used for the collection on the installment plan. The pupil assigned to a home room takes one of these cards with him. He records the names of the pupils purchasing activity tickets. Each payment is in- dicated by placing a numeral '1' in each square opposite the name of the purchaser for as many quarter dollars as he may make in payment on the first payment day. The following week a numeral '2' will be used and so on until the last payment period when the numeral '14“ will be used. If a pupil paid one quarter of'a dollar each week for fourteen weeks, oppo- site his name would appear numbers from one to fourteen in each of the squares. The September ticket is issued when the first payment is made. The October ticket is issued during the fifth collection period, and to indicate that the October ticket has been delivered, a circle is placed around the numeral in the fifth square. To indicate that the Nov- ember ticket has been delivered, a circle is placed around the numeral in the ninth square. The coupon book is issued when the fourteenth payment is made, and the number of the coupon book will be recorded on the margin of the card, (1) to indicate that book has been delivered, and (2) for future reference in case the book is lost. rd 19.11.12. t 141_ t Numbgr L '12— Taxman 1.1.8 on 3: ""1 _.. d. Otal ”11¢*t_9 S -:,H 015. “A! 0- _°' Name of Purchaser vfl s b await) Sismmstsit’rid Figure l. Installment Payment Collections by Home Rooms. 14 15 All collectors report after making their collections to a room centrally located, and check in their collections. Figure 2 illustrates the form used for recording the collec- ticns. At the bottom of the home room card, (see figure 1), are spaces numbered from one to fourteen, in which the collec- tor records the amount received each week. The amount checked in must correspond with the number of numeral 'l's' on the .card for the first collection; the number of numeral ”2's“ the second collection period, etc. The amount collected by home rooms is recorded on the summary sheet, (see figure 2), and the total is added to ascertain the total receipts for the day._ It is possible, at any time, to report to the pupil, the week in which payments were made and the number of pay- ments made during any week. . This method of installment payment collections permits a pupil to make up back payments, at other times than during the home room period on Tuesday. As an example, a pupil may not have made five payments by the first Tuesday in October, and has not received his October ticket. A football game is scheduled for the following Friday night and he wishes to attend. The home room cards, (see figure 1), are indexed numerically by the home room numbers. The pupil making a back payment gives his home room number, his record is easily found, the payment is recorded, and the necessary ticket is issued. This work is handled by trustworthy pupils or the 16 Activity Ticket Summary - Payment No. Home Room Cashier's Name Home Room Teacher Receipts Senior 243 Betty Blume Mr. Van Liere 267 Marjorie Bottom Miss Smith 288 Lorraine Carr Miss Gambell 362 Phyllis Jones Miss Yinger Junior ' 242 Betty Meissner Miss Reynolds 196 Ann Polihonki Mr. Keeping W i ,‘d A l 310 Norma Andrews Mr. Edgerton cphomore 311 Evelyn Barnes Mr. Leyrer 191 Joyce Sass Mr. Feeman ' Total receipts page 2 - Total forwarded from page 1 - Total Collection Checkers Substitutes Arlington Forist Betty Jane Mann Eileen Oehler June Barnes Vivian Taylor Bettymae Wood Maxine Merritt Jeanette Smith Gladys Hopkins Ardis Austin Doris Janetski Betty Wilson Figure 2. Checking Installment Payments by Home Rooms 17 school treasurer. The "numerals" are made with a colored pencil to avoid confusing them with those recorded during the regular collection period. About sixty peOple are required to make the collections from over forty home rooms. Several of the home rooms are large and require more than one collector, and substitutes are needed to replace those pupils who may be absent. On the payment periods when tickets are issued, six people are needed to check in the receipts, and check in tickets re- turned. The installment payment plan used at Eastern High School has definite educational value. 1. Training pupils to handle money. 2. Teaching pupils to keep accurate records. 3. Training pupils to do a Job that is practical. 4. DevelOping desirable traits of character. a. Accuracy b. Responsibility 0. Cooperation Over thirty thousand dollars has been collected during the last ten years by the installment plan described. No serious arguments have developed over payments that have not been recorded. This same plan is used for the collection of payments for the school annual (Lantern). The number of payments is smaller. These payments, likewise are restricted 18 to twenty-five cents or a multiple of twenty-five (see figure 3). The stamp and seal plans may have advantages in as much as the pupil receives a tangible record of payment each time a payment is made. A pupil at Eastern receives a ticket at the beginning of each month until payment in full is made. During the intervening time he is paying on account. From the stand point of ease of collection, speed of collection, and the limited number of records, the installment plan would probably prove superior. Allocation of Funds All funds received from the eel; of the general organization tickets are distributed by the athletic board of control. The membership of the board consists of the principal, the athletic director, the head coach, the treas- urer, and three members of the student body. The members of the studmnt body are choosen by petition, with a primary and final election. One member choosen from the studmnt body must be a girl and she is expected to act as secretary of the board. The principal is in a position to cast the deciding vote whenever a tie vote may develop. During the school year 1940-41, the money received from the sale of the general organization ticket was distributed as follows. 19 q A. A the:— Id,— m doanmmiucoahcm meme nmoapooaaoo Hence chosen on radon moo mmm on» emu SI JUJJNJHHH MEN 4.. 1:1 ououa pesosd a m Hdpo OH O OH (5 on I m o c houmnohsm we use: Figure 3. Installment Payment Collections for the Annual. 20 Lantern (school annual) 200.00 Opera Fund 170.00 Forensic Fund 170.00 Class Play (fall) 170.00 Class Play (spring) 170.00 Class of January 1941 57.75 Class of June 1941 60.75 Class of January 1942 28.75 Class of June 1942 59.50 Class of January 1943 34.50 Class of June 1943 68.00 Easterner (school newspaper) 500.00 Athletics 1900.00 Class Dues 5.00 Special Assemblies 100.00 General Organization Fund 306.75 All allocations are made in a lump sum, except the school annual and the classes. The amounts distributed to the annual and classes are made according to actual sales. Each purchaser of an activity ticket in full is allowed credit for class dues for the current year. Each purchaser is entitled to a twenty-five cent payment on his school annual. The allocation to these groups is contingent upon the payment of an activity ticket in full. A list of all pupils who have paid for activity tickets in full is prepared by the school treasurer in triplicate. One copy the list is given to the home room teacher for his record in distributing the school paper. Home room lists are combined according to classes membership and each class adviser receives a list to indicate which members are to receive dredit for payment of class dues. The third copy is given to the manager of the school annual to indicate those pupils entitled to credit for one payment on their annuals. 21 The method of allocation of activity funds is placed to a great extent in the hands of the principal and those associated with the athletic department. Probably it would be better if each organization was represented by a pupil and the adviser of the activity. Two representatives from each group would make a larger committee. Greater represen-- tation would have this advantage; that more pupils would have a voice in the distribution of the funds. This plan would prove a more democratic procedure. Activity Budget Each activity should find it a wise policy to esti- mate and balance its revenues and expenditures for the year. In preparing a budget, each organization should take care that the estimated revenues and expenditures are nearly equal. A conservative policy would seem to require that there should be at least a small surplus of estimated revenues over esti- mated expenditures. Activities are not run for profit and are liable to lack the close supervision that is ordinarily given to private enterprises. 'Individual and business organ- izations are beginning to learn from governmental bodies the advantages of an annual budget. A well organized student body of a large school will find it advantageous to control its financial problems with a budget. Figure 4 illustrates a model budget for all activities. 22 Budget Sheet Anticipated Income Treasury balance or deficit Gate receipts Activity tickets Season tickets Contracts Dues Candy Sales Special assessments Special projects Miscellaneous Total anticipated income Anticipated Expenditures Trips Equipment Equipment upkeep Medical services Medical supplies Officials Contracts Janitor services Gate expenses Field expenses Scouting Printing Awards and trophies Banquets Parties and roasts Prizes and gifts Programs Welfare and flowers Miscellaneous Total anticipated expenditures xx.xx xx.xx xx.xx xx.xx xx,xx xx.xx xx-.x.x xx.xx xx.xx xx.xx xx.xx xx.xx 11.11 11.13 XX.“ n03 11.“ xx.“ 11.11 xx.xx xx.“ xx.xx 1.1.11 xx.xx xx.xx xx.xx IX.XX Figure 4. Activity Budget 23 Advantages of a Student Body Budget1 1. Estimated revenues and expenditures will be balanced 2. A more intelligent distribution of income will result 3. Departments will plan activities more intelligently 4. Income-producing events will be scheduled in advance The budget form requires a minimum of effort to prepare, (see figure 4). All organizations are required to submit an estimated budget, and it is essential that it be available the first week of school. Without a budget, organizations are encouraged to spend money freely, and are confronted with the danger of having all of their funds spent before the end of the year. The governing body of the organ- izations, must of necessity look into the future, and esti- mate future earnings and expenses. The duties of the high school treasurer will be dis- cussed in Chapter III. Accounting records and how the central accounting system functions in a large high school will be described with necessary forms to illustrate procedures. 1Noble L. Scott, Student Bogy Finances and A countin , (Cincinnati, SouthpWestern Publishing Company, 1931), p. 9. CHAPTER III CENTRAL ACCOUNTING SYSTEM It is important in a secondary school for the principal to see that every fund of any sort intrusted to any student officer, or faculty adviser of any student activity, is subject to an adequate accounting system. Experience has definitely shown that the failure to provide. a definite accounting system is an invitation to dishonesty or carelessness, which is harmful training to pupils and reflects discredit on the administration of the school. A plan employed in a large number of secondary schools requires the depositing of all funds with a school treasurer and the keeping of a separate account of receipts and expenditures by the treasurer of each organization. Activity funds can be protected without the requirement that all funds be handled by the faculty treasurer or other members of the _ faculty. Such a practice may protect the reputation of the principal, but it also deprives the pupils of responsibilities from which they can obtain valuable training. The class, club, and other activity treasurers collect all monies, keep proper records and turn the funds over to the central treasurer who deposits them in the bank in one large school account. No matter how small the sum for which an activity treasurer has 25 responsibility, it is essential that it should be accounted for accurately and regularly. With the coming of the real- ization that the extra-curricular activities are a legitimate and vital part of the curriculum, has come the profession- ally trained administrator; the accounting for extra—curric- ular funds has been placed on a basis which can be compared to the accounting of funds of the board of education. The High School Treasurer Of 367 which answered the question,1 "Do you have a bonded treasurer," 135 or thirty-seven per cent said, "Yes." The sums for which treasurers were bonded ranged from $500 to $25,000. The median for 111 schools which answered the question was $5594. The person who handles the funds is us- ually an adult. For all of the schools which replied the person responsible was: Adult--l79; Pupil-~66; Both Pupil and Adult--ll4; Neither--6; Secretary Board of Education--4. The adult treas- urer was almost universal practice in the schools in which (student) council had legislative control of extra-curriculum funds. It is not infrequent practice to have an adult bonded treasurer, perhaps the principal's secretary, who actually disburses the money, and to have pupil treasurers for each organization, who deposit money with the school treasurer, learn to keep accounts and reconcile their memorandum accounts with the school treas- urer periodically. Certainly the practice of having a bonded adult treasurer of extra-curric- ulum moneys cannot be too highly recommended. The small sum required to bond the treasurer is a legitimate charge against the council, or extra- curriculum fund. Almost two-thirds of the schools which answered the question do not employ this method. 192, cit., I, 154. 26 Eastern High School uses the central treasurer plan for accounting for activity funds. The central treasurer is an instructor in office practice and bookkeeping, appointed by the principal and bonded by the Board of Education. He is really in charge of a school bank where over one hundred activity treasurers or organizations make their deposits, using the same procedure that is employed in any regular banking institution. Records used in the accounting system: 1. A record for each organization, showing deposits and withdrawals with the central treasurer. 2. Withdrawal orders authorizing checks to be drawn upon the central treasurer. 3. A ledger for the central treasurer with its en- tries for each separate organization. 4. A check register and book of original entry. 5. Deposit slips from the central treasurer to the local treasurer. 6. Receipts issued by the local treasurer for money paid into the organization. 7. Voucher checks in triplicate for withdrawals from the local bank. The local treasurer wishing to withdraw money from the school bank must present an itemized account of materials or services to be purchased; in case the charge has already been made, and invoice or statement of the charge. The treasurer and adviser of the activity must sign the requi- sition which authorized the central treasurer to issue the check. 27 How the Accounting System Functions Every operation of the central accounting system is closely patterned after the procedures of an actual banking institution. However, it is obvious that modifications are made in adapting these procedures to the practical needs of Eastern High School. For purposes of illustration, a treas- urer of an activity wishes to deposit money with the school treasurer. A deposit slip is made out in duplicate on a form similar to figures 5 and 6. Figure 5, the original capy, is retained by the school treasurer for his record. Figure 6, the duplicate copy, is given to the organization treasurer as a receipt, and the copy is used to record the transaction on the books of the activity he represents. The name of the person making the deposit is indicated on the deposit slip. The school treasurer retains the original ’ccpy with the money until a deposit is made at the local banking institution. Figure 7, illustrates the form on which a record is made of all deposits stored in the vault until the deposit for the bank is prepared. This record is only temporary, and is destroyed after making the bank de— posit. Deposite are made at the local bank at least once each week. A duplicate deposit slip is prepared for the total of all monies received since the last deposit was made. Figure 8 is the original, and figure 9 is the dup- licate copy of the deposit slip used in preparing the bank _:‘ L—fi Cuprencx Deposited with Eastern High School Treasurer Date Actiyytx 1 L—* -: 1* Silvgr Chggks Total deposited Depositgd by —__i Trggsurgr Figure 5. Treasurer's Deposit Slip, Original COpy 28 Activytx Deposited with Eastern High School Treasurer Date Currencl Silvgr Chgcks Total dgoosited Dgpositgd by —-l_: ngasurgr Figure 6. Treasurer's Deposit Slip, Duplicate Copy in Color 29 50 Date Name of Activity Deposit Total Figure 7. Treasurer's Activity Deposit Summary Deposited with BANK OF LANSING Lansing, Mich. By 194 Dollars Cents Currgncl Silv r Checks as follows: ORIGINAL T ta Figure 8. Bank Deposit Slip, Original Copy 31 Deposited with BANK OF LANSING Lansing, Mich. p1 W—fi Dollars Cents Currency Silver Checks as follows: DUPLICATE Totgfl Figure 9. Bank Deposit Slip, Duplicate Copy 32 33 deposit. After the deposit clip has been made out for all money on hand, and the deposit has actually been made, the central treasurer has a deposit slip corresponding with the amount recorded in the passbook by the teller of the bank. The duplicate copy of the bank deposit slip, retained by the central treasurer, corresponds with the total of all activity deposit slips given to organization treasurers for that particular bank deposit. The general bookkeeper, who assists the central treasurer, verifies the amounts of the deposit slips with the total of the passbook entry, be- fore recording the activity deposit slips in the check re- gister. The duplicate copy of the bank deposit slip is attached to the activity deposit slips for any bank deposit, and the attached clips are filed permanently for future re- ference should the need arise. At all times any entry in the passbook will correspond with the total activity de- posits comprising that entry. Then an organization deposits money with the school treasurer, the deposit is the first step in the administration and control of school finances. Authority for all payments must be recorded and placed in a permanent record to protect the central treasurer, the adviser and the treasurer of the activity. The activity treasurer and adviser will fill out a form similar to figure 10, properly signed, which is pre- sented to the central treasurer. The check is issued and the nonsmmoha .oz Aon unnamed non no umooooc can on ewnmno a . amended on moons e comma op douamompoe one now open damaged: .woauoeq .oz monooob Aonsneema Hoonom swam snowmen Figure 10. Activity Withdrawal Slip 35 order is filed by the school treasurer as proof of authority for issuing the check. All checks are issued in triplicate. The original c0py, or the actual check is printed on safety paper (see figure 11). The first carbon 00py (see figure 12) is a non-negotiable check form printed on a colored paper. The first carbon copy of the check is used to record the trans— action in the book of original entry of the school bank. The book of original entry and check register serve a dual purpose. The second carbon copy of the check is also a non-negotiable instrument (see figure 13) printed upon a paper of contrast— ing color. The second carbon copy is issued to the activ- ity treasurer for whom the check has been issued, to record the transaction on his books. If each activity treasurer re- tains copies of all receipts for money deposited with the central treasurer, and keeps the carbon copies of the checks issued, he has a complete record of all receipts and dis- bursements made by the central treasurer for his account. The carbon copies of the central treasurer's records issued to activity treasurers make it very easy for those advisers and activity treasurers who have little or no knowledge of accounting to keep accurate records. A report is mimeographed each month by the central treasurer showing the balances of all accounts. The monthly report gives each organization treasurer the information needed to reconcile his account. 36 wearoaaou on» no smashed nu :6 Boone o>opc one commune on on posoood sumac“: .moanmoq Aoomom mon zmuammm mmapamomon omouom nooseampm mama seamen manganese access swam essence o mamaaon open HHHHH .02 scanned: .msaessq .oanzeq no azam Ho macho one on Man access meHm zmuam4m_ Figure 11. The Voucher Check 37 commune on op aooooo4 mmmdmoaz .wmanoca mmaroaaou on» no poached qoomom mwnm ummamdw ad ad moose shone one 3939851 .8: ssmflcdx 5583 6283 no mznm ES ca 0 unsaaon _ Ham even 2a.: .oz .883 EH ESE Figure 12. Voucher Check, First Carbon 58 commune on on pmooood cameos“: .mmaumcq msaroafloe one so possess geomon meHm zmHBmam ma ea Rocco o>opm ens mamaaaoouz zoz sewage“: .msaessq .ezamzaq mo uzam Noon on a cecaaoo was open HHHHH .cz accuse menu zmmanau Figure 13. Voucher Check, Second Carbon 39 Figure 14 is a copy of a part of a page taken from the check register and book of original entry, and it covers actual transactions for a short period of time during the month of June, 1941. A few of the transactions recorded in the book of original entry are used to describe how the accounting system functions at Eastern High School. On June 10, 1941, the manager of the Easterner, authorized the school treasurer to issue a check to the Lansing Postmaster. The school treasurer received a copy of an activity withdrawal slip, (see figure 10), properly filled out. The withdrawal slip authorized the treasurer to issue a check to the Lansing Postmaster for $16.50. The original entry (see figure 14) did not give the reason for payment, but this information was recorded on the voucher section of (the check. Check No. 11111 was issued to the Postmaster. The original copy of the check (see figure 11) was mailed to the Postmaster. The first carbon copy (see figure 12) was retained by the school treasurer. The entry in the check register was made from the first carbon copy. After the check was issued the first carbon copy was punched and the capy was filed numerically on a Shannon file. The second carbon copy (see figure 13) was delivered to the manager of the Easterner, who authorized the check to be issued. On June 12, 1941, the conductor of the Madrigal Choir authorized the central treasurer to issue a check to the 4O am on 8.9.: 00!: 83v on so." cosh \ ma enoa Good. .3 emu cm 3 an .3 Goes..." 8 .NH 3. .00 on..." grain 23H CS once so .28 than testes» 33.. 32 can. no .88 ion sneer—35> can: .326 Totes: 5.5"." eds.— 038 3.3 eon season 03: beacon sense noses .> .u / :(BtE data“, .326 35.: secs Tucson 2884 2.8 e To . Hoodoo clan amuse: minnows.“ .5334 Boone.” .98 125 3.8» beacon ecscm Scones Add” 2884 Accessed possesses." eases-a 0.32 see-enema fines— . assume: he: Eugen. sang annual! mecca nose 3 No.6 cue-é 3 .23.... .338 in ta NH NH 1! HH 0." 53 it Figure 14. Check Register and Book of Original Entry 41 Foster Bus Line for transportation. There was not suffi- cient funds in the Madrigal Choir account to settle the bill. The conductor of the Choir is also responsible for the Piano Fund account. Check No. 11117 (see figure 14) illustrates how a check may be issued and charged to two or more accounts. When a check is issued and the charge is made to two or more accounts for which two or more advisers are responsible, the second carbon cOpy is issued to one of the advisers and the other advisers are sent notices of the payments and the amounts of the charges to their respective accounts, to com— plete their records. The deposit made with the Bank of Lansing on June 11, 1941 (see figure 14) illustrates the method for making the entry. The organizations making the deposits with a record of the amount each had deposited had already been listed (see figure 7). Each activity had been issued a receipt (see figure 5) and the original copy was placed with the money. The sum of all the receipts equaled the amount of the bank deposit. A duplicate copy of the Bank of Lansing deposit slip was made out (see figures 8 and 9). The bank deposit slip shows a total of $286.98, which corresponds with the en- try in the passbook of the Bank of Lansing. The duplicate copy of the bank deposit slip is attached to the original cOpies of the receipts issued to the nine organizations cred- ited with deposits with the central treasurer. All deposit slips are filed chronologically for reference. 42 The entries (see figure 14) are posted to cards, (see figure 15) on a small Burroughs Bookkeeping machine. The ledger cards are of a standard form and may be purchased at almost any office supply company selling bookkeeping ma- terials. The central treasurer has many responsibilities that cannot be shifted to others. Fortunately, a great deal of the work can be done by pupils. Two girls usually operate the bookkeeping machine at Eastern. A pupil is chosen for this work in her sophomore year and becomes an assistant to a senior pupil operating the machine. Each bookkeeping machine operator serves an apprenticeship on the machine of not less than one year. The choice of the pupil to operate the machine is probably one of the most important factors in easing the work of the central treasurer. Practically all of the checks are issued by pupils in office practice classes. Ten to twenty pupils learn to write checks with accuracy during the first semester. More pupils are available and as many as forty or fifty pupils write checks some time during the second semester. The original entries are made by pupils in office practice classes and several pupils may record entries on the same day. Almost all of the members of the office practice classes are given an opportunity, some time during the semester, to help prepare the deposits for the Bank of 45 (I‘ll-III‘l‘II‘II‘ \t’ 11’ \ egos again ascend see-1n 3380 .388 one.— .Ss. . :8 Boom ecu 93° «5534 no one: . fl Figure 15. Bookkeeping Machine Ledger Card 44 Lansing. None of the pupils are permitted to take deposits to the bank as this is considered the responsibility of the treasurer. In the course Of a year, more than one hundred pupils assist the school treasurer with the collection of funds from the sale of the general organization tickets and the school annual sale. About one hundred twenty-five pupils in office practice are given an Opportunity to assist the treasurer in some way. Not all pupils are given Opportunities to handle all details, for the treasurer is inclined to use those most capable of assisting him with his work. The treasurer‘s work is more difficult during the first part of each semester. As the work of the treasurer becomes better organized, those pupils trained to do certain parts of the work assist and often actually teach others during the latter part of the semester. On the first of each month the central treasurer prepares a mimeographed report of the balances of all ac- tivity accounts (see figure 16). A copy of this report is delivered to all the advisers and activity treasurers. Ade visors or treasurers check their accounts against the balances with the central treasurer, and any discrepancies are reported immediately. Methods for financing extra-curricular activities and an uniform accounting record will be described in the 45 Advertising Board Athletics xxx.xx Astronomy Club Auditorium Club Auditorium Equipment Fund Auditorium Fund Auditorium Tickets Badminton Club Band Concert Account Bank of Lansing xxxx.xx Basketball Tournament Bible Club Boosters Club Boxing Club Boys' League Cap & Gown Account Capital National Bank xxx.xx Chemistry Club Chemistry Department Class Dues Class of January 1941 Class of January 1942 Class of January 1943 Class of January 1944 Class of June 1936 Class of June 1940 Class of June 1941 Class of June 1942 Class of June 1943 Class Plays Club Council Concessions Account Dads' of Eastern xx.xx Dancing Club Debt Fund Dishonored Checks xx.xx Drama Club Eastern Alumni Association Eastern Individual Pictures Easterner English Department Forensic Fund .xx French Club x.xx Fur, Feather, and Fin Club Girls' Athletic Association General Fund xx.xx General Organization Tickets xx.xx xx.xx xx.xx xx.xx xx.xx .XX XX.XX taunt an anaesthetist“: stunt: 55:25.. E. Esfidfifinssnnmm tssnsi xx.xx xx.xx xxx.xx Figure 16. Account Balances, Treasurer‘s Monthly Report 46 Girl Reserves Girls' League Girls' Discussion Club Girls' Tumbling Club Girls‘ Golf Club Hall Locker Fund History Club Hi-Y Club Honor Society Knitting Club Lantern Account Latin Club Madrigal Choir Magazine Campaign Hixmasters‘ Club Needlecraft Club Office Practice Account Opera Account Paint Splashers P. T. Association Quaker Business Club Quill and Scroll Club Radio Club Science Club Science Department Spanish Club Stage Club Studnnt Council Student Loan Fund subscription Campaign Teachers' Welfare Fund Tennis Club Travel Club Ukulele Club Varsity Club Woodshop Account Home Economics Department x.xx XXX. XX Figure 16. Account Balances, continued 47 next chapter. The financial requirements of the department of athletics are usually greater than those of all other activities combined. The method of accounting for athletic department finances differs somewhat from the method employ- ed in the other smaller accounts. Records and method of handling athletic finances are described in some detail in Chapter IV. CHAPTER IV EXTRA—CURRICULAR ACTIVITIES The Board of Education pays the supervisory and housing bills, thus the major cost of an activities program is borne by the school district. While the Board of Edu- cation employs the teachers, and makes appropriations for equipment and materials for the regular curriculum, it seldom makes appropriations for extra-curricular activities. The Board of Education has on a few occasions appropriated money for sending musical organizations to special contests, and has assisted in purchasing band uniforms. As a general rule funds from taxpaying sources have not been used direct— ly to finance extra—curricular activities. Methods of Financing Activities The majority of the clubs at Eastern High School collect dues. The club dues seldom exceed twenty-five cents per member. No formal regulations have been made to restrict the dues, but the dues usually collected do not exceed the amount spent for refreshments at their parties. All club advisers are given an opportunity at the beginning of a semester to ask permission to assist with one candy sale during the semester. The profits from the sale of candy I is credited at the end of the semester to the accounts of 49 the clubs participating. The sale of candy is permitted after school and only one day each week. The profits average three dollars per sale. Each club or activity is required to pay the Lantern (annual) not less than three dollars for each picture published. The profits from the candy sales usually meet the charges for the pictures. The manager of the candy sale is responsible to the principal and the club council. The manager and his assist- ants supervise the candy purchases and sales, collect and deposit the receipts with the school treasurer. The school treasurer pays all the bills, when properly authorized to do so by the manager of the concession. The selling is done by members of the clubs. Each club participating in the profits volunteers to work for one week. The actual profits from the sale is credited to the club which has done the work for that week. A better policy would probably be to pro-rate the pro- fits, but this would sacrifice the incentive on the part of the club members to promote sales. The major portion of all activity receipts are ob- tained from the sale of the general organization ticket. About sixty per cent of the student body purchase activity tickets (1090 in 1940) making the total receipts from this source over four thousand dollars. Pupils are urged to work for activity tickets if they are unable to buy them, and a few tickets are given outright to deserving pupils. 50 The staffs of the annual and the school paper solicit advertising from business firms. Several hundred dollars are realized from this source each year. The athletic department usually sells advertising space in football programs. The advertising receipts do not amount to more than the cost of printing and materials. However, one way to realize a profit on football programs is to sell them at the more important contests. Athletic contests, the fall and winter class plays, and the opera bring in additional funds from adults and pupils who have no activity tickets. The amount of money varies each year for the different activities. Budgeting experience and the ease with which funds may be allocated by the central treasurer, makes it possible for the more profitable projects to carry the load. Profits of several hundred dollars each year from a magazine subscription sales campaign are usually restricted to some special project. The money received from all activities amounts to twenty to twenty-five thousand dollars each year, and must be accounted for by the administrator and his assistants. The funds of most of the activities can be accounted for by a standardized form (see figure 17). The funds of the athletic association are so much larger than other activities that special forms and methods of handling are required. 51 , ame of Activity »_ Adg;§er Payment to Date Received_from [Receipt Payment Balance it Figure 17. Activity Accounting Record 52 Accounting for Athletic Funds The school treasurer of Eastern High School is respon- sible for all athletic funds. At the beginning of the school year a check for one hundred dollars is issued to the treas- urer. The check is cashed and the hundred dollars (the amount is kept intact by frequent reimbursing from the treas- ury) is available at all times in cash for the financing of trips out of town by athletic teams. Money to pay for meals and incidentals on the trip is advanced by the treasurer from the cash fund to the person in charge of the team. After the trip an itemized statement of the expenses incurred is presented to the treasurer. A check for the cost of the trip is made payable to the athletic director, who in turn endorses the check and returns it to the treasurer. The check is cashed and the money is returned to the cash fund. This method of financing the trip makes it possible for the treasurer to have on file the endorsement of the athletic director for cash expenditures. The endorsement of the athletic director facilitates auditing and protects the treasurer. Bus transportation is paid by check on receipt of the bill for the trip. . All athletic receipts are deposited and all expend- itures are made by the school treasurer. The athletic director authorizes in writing all payments from the 53 athletic account. The treasurer maintains a columnar record in which all receipts and expenditures are distributed. The cash balance of the athletic account is brought forward at the cpening of school in September. A running total of the distribution of all receipts and expenditures is maintained during the year. At any time during the year the total re~ ceipts and their sources and the total of all expenditures and their classifications may be ascertained. At the close of each month a report is made to the principal and athletic director showing the distribution of all receipts and dis- bursements for the school year to date (see figure 18). The items listed on the athletic report (see figure 18) are the same as the headings of the columnar record. After each athletic contest held at home, a financial report is made to the principal and athletic director (see figure 19). After visiting another school for an athletic contest, a report is made to the principal and athletic director of the cost of the trip (see figure 20), which indicates whether the trip was made at a profit or loss. Figures 19 and 20 indicate to the athletic director and principal the current financial status of athletic events. The financial status of the athletic department may be ob— tained during the month from the columnar distribution re- cord without waiting for the report at the end of the month (see figure 18). 54 Athletic Receipts and Disbursements Report September 5, 1940 - June 30, 1941 Balance, September 5, 1940 xxx.xx Receipts Gate xxxx.xx Activity Tickets xxxx.xx Central High School xxx.xx Miscellaneous xxngg xxxx. 01d Balance and Total Receipts xxxx.xx Disbursements Football Contracts xxx.xx Basketball Contracts xxx.xx Miscellaneous Contracts xx.xx Basketball Officials xxx.xx Football Officials xxx.xx Miscellaneous Officials xx.xx X—Country Trips xx.xx Football Trips _ xxx.xx Basketball Trips xxx.xx Swimming Trips xx.xx Tennis Trips xx.xx Golf Trips xx.xx Track Trips xxx.xx Baseball Trips xx.xx Athletic Awards xxx.xx Medical Services xxx.xx Medical Supplies xx.xx Insurance xxx.xx General Equipment xxxx.xx Equipment Upkeep xxx.xx Janitor Services xx.xx Gate and Field Expense xxx.xx Field Lighting xxx.xx Miscellaneous Expenses xxx.xx Scouting Expenses xx.xx Central High School xxx.xx Printing Supplies and Expenses xxx.xx Change - ' xx.xx Total Disbursements xxxx,;; Balance Jgne SOL 1941 xxx.xx Figure 18. Athletic Receipts and Disbursements Report 55 Advance Sale, Adult Advance Sale, Pupil Gate, Reserve Seats Gate, Adult 6 50 cents Gate, Pupil 6 25 cents Season Activity Tickets Season Junior High Tickets Season Adult Tickets Guest Tickets Total Attendance and Total Receipts Expenditures Contract, School Official, Name No. No. No. No. No. No. No. No. No. No. §port Date Visitor chrs Eastern Score Receipts fifilfifififi} Official, Name Official, Name Gate and Miscellaneous Janitor Services Total Expenditures Net Profit or Loss fiflfifififi Figure 19. “Home“ Athletic Contest Report 56 Sport Date School Visited Score Easterngcore Receipts Contract with School Visited 3 Expenditures Meals - Number Transportation #fifi Miscellaneous Expenditures Total Expenditures Net Profit or Loss from Trip Figure 20. “Visiting" Athletic Contest Report 57 Probably the best way to close this chapter will be to quote from a book written on this subject by Charles E. Forsythe, State Director of High School Athletics, of the Michigan High School Athletic Association.1 As far as athletic finances are concerned, it seems immaterial whether there is a separate athletic treasurer in a school, or there is a central internal accounting system in effect, with a general school treasurer. In order that each activity may be considered as a part of the entire school program, it is recommended that the latter plan be followed. A central accounting system for all high school activi- ties presents tne following advantages over the scheme of having separate systems for each activity: 1. Responsibility for disbursements of all school funds may be delegated to one individual. 2. It is in harmony with the plan of having all school activities under the general supervision of an all-school committee. 3. It enables the school administrator to have a composite picture of the general condition, financial and otherwise, of all the school activities. 4. It provides the possibility for a much more accurate audit of school activities funds than otherwise might be the case. 5. The purposes for which expenditures are made may be more easily checked to as- certain if they are in accordance with authorization. 6. Local banking institutions usually will lcharles E. Forsythe, The Administragcion 9; High School Athletics. (New York: Prentice-Hall, Inc., 1939), pp. 234-277. prefer a single school deposit account rather than separate ones for each school activity fund. By the nature of it, the plan appeals to students and school patrons as being more business like. 58 CHAPTER V SUMMARY AND CONCLUSIONS Summary The curricular and extra-curricular programs offer exceptional educational opportunities to the commercial de- partments of secondary schools. Almost every pupil is of necessity concerned with activity finances, but the leader— ship in directing and handling finances, can and should be a responsibility of the commercial department. The activ- ity program involves the preparation of budgets; there are accounting records to keep, checks to write, and de- posits to make. Financial reports must be prepared, tickets must be sold, gate receipts must be checked and secretarial services are needed. Here is waiting a real laboratory for business experiences. With a spirit of cooperation on the part of faculty and pupils has come the development and successful operation of a scheme of corre- lated activities finances. Many schools are selling activity tickets on the in— stallment plan, and others are investigating plans for fin— ancing activity programs in this way. During the past year the writer has had nine inquiries requesting information about the method and records used for the sale of activity 60 tickets on the deferred payment plan. The requests for in- formation have come from large and medium sized secondary schools. Nearly all authors agree that tickets should be sold on the installment plan, but not all agree on the amount to be charged each week. The collections vary from ten to twenty-five cents per week, and the total amount charged for activity tickets range from one dollar and fifty cents to five dollars or more. The total price of an activity ticket should be low enough to encourage the greatest number of participants. Generally it has been found more desirable to arrange the payment schedule so that the ticket is paid for in full not long after the close of the football season. A weekly payment of twenty-five cents would pay for a three to four dollar ticket by the early part of the basketball season. Payments are likely to lag if payments are extended over too long a period of time. Athletics usually appeal to many pupils and it is quite proper to capitalize on this interest to aid in the support of other phases of the activities program. The sale of the activity ticket makes it possible to subsidize other activities which share in the distribution of the funds. Such a subsidy can be justified in as much as some activities have a high educational value, yet are seldom self-supporting. 61 A general organization ticket should be sold on the deferred payment plan, and should include as a minimum, all of the following activities: Admission to all home athletic contests (occasionally a reduction in price at visiting schools through reciprocal agreement on presentation of the ticket); admission to special assemblies (pupils not holding tickets should be admitted without charge); the payment of yearly class dues; subscription to the school paper; allow- ance of one or more twenty-five cent payments on the school annual; admission to school plays, concerts and operettas; admission to debates and other forensic contests, and ad- mission to certain parties. It is not advisable from a standpoint of accommodating the crowds and for financial considerations to include all social events. A committee composed of representatives (faculty and pupil) of all activities concerned should determine the act- _ual allocation of funds from the sale of the organization tickets. The fact that some income-producing activities are only partly dependent upon the activity fund should be taken into consideration when making apportionments. After the total amount to be received has been estimated as nearly as possible and the budgets for the year have been approved, it is a simple matter to apportion the percentages. The actual transfer of funds does not require the issuing of checks. After authorization all transfers are made by entries on the books of the treasurer. 62 Most of the accounting work and the maintenance of necessary records is done by pupils. Pupil participation should be encouraged in handling all financial activities. The training is desirable and is one of the most important considerations; another is the help that pupils can render to the school treasurer. No pupil is paid for his services, but every saving that can be made pays dividends to the pupils by reducing the cost of financing activities. The principal should choose for his treasurer a person whose training and experience make him capable of conducting the work. The treasurer will relieve himself of many responsibilities by directing the pupils in doing a large share of the work. Any treasurer who does not per- mit the pupils to assume the greatest possible degree of responsibility, overlooks an opportunity of inestimable educational value. The twenty figures in this report illustrating how finances are, or could be handled at Eastern High School are given in this report to indicate that the keeping of records is comparatively simple and does not entail the work that many people believe. 63 Conclusions After years of experience in a small and a large high school system, and after a careful examination of numerous methods of internal accounting in secondary schools, the writer wishes to conclude this study with recommendations which he believes are sound administrative practices. 1. The principal should be responsible for the supervision of all internal financial transactions. The principal or his desig- nated representative should be reaponsible for all debts or obligations incurred. He should require regular financial reports from the central treasurer, and yearly reports from all activity treasurers. The central treasury system has been accepted as the most desirable method and the best business practice. The treasurer should be bonded. He must provide a system for making deposits without delay. Checks should be used in payment of all obligations. The treasurer‘s records should be simple, easily interpreted, and readily audited. 64 Pupil participation should be encouraged in every phase of the treasurer's work. A sense of responsibility in pupil assist- ants should be developed because of its educational value. The degree of pupil participation must of necessity depend upon the sense of responsibility the (commercial department is able to develop. 65 BIBLIOGRAPHY Books Brammel, R. Roy., Intramural and Interscholastic Athletiqg. Washington: The United States Government Printing Office, 1933” pp. 81-99. Brogue, Ellen Boothroyd and Jacobson, Paul 8., Student Council Handbook. Berrien Springs, Michigan: The National Association of Secondary—School Principals, 1940. pp. 134-159. Cox, Phillip W. L. and Langfitt, R. Emerson, High School Administration and Supervision. New York: American Book Company, 1934. pp. 496-506. Douglass, Harl R., Organization and Administration g; Secondary Schoolg. Boston: Ginn and Company, 1932. pp. 439-463. Forsythe, Charles E., The Administration 9; High School Athletics. New York: Prentice—Hall, Inc., 1939. pp. 234-277. Foster, Charles R., Extra—Curricular Activities $3 the High School. Richmond: Johnson Publishing Company, 1925. pp. 170-173. Fretwell, Elbert K., Extra-Curricular Activities ig Sgcond— arx Schools. Boston: Houghton Mifflin Company, 1931. pp. 444-473. Morgan, M. Evan and Cline, Erwin C., Systematizing the Work 9; School Principals. New York: Professional and Technical Press, 1930. pp. 196-210. Newsom, N. William and Langfitt, R. Emerson, Administrative Practices $3 Largg High Schools. New York: American Book Company, 1940. pp. 158-183, pp. 363—375. Noble, L. Scott, Student Body Finances and Accounting. Cincinnati: SoutheWestern Publishing Company, 1931. 256 pp. 66 Books, (Continued) Rice, George A., Conrad, Clinton C., and Fleming, Paul, The Administration g; Public High School Through Their Personnel. New York: The MacMillan Company, 1933. pp. 553—559. Terry, Paul W., Supervising Egtra-Curricular Activities. New York: McGraweHill Book Company, 1930. pp. 330-343. Young, H. R., Accounting 9; Extra-Curricular and Activity Funds. National Association of Public School Business Officials (Proceedings), 1940. pp. 242-260. Articles Barker, H. J, “Financing Activities the Modern Way," School Activities, 9, May, 1938, pp. 414-415. Bay, B. C., ”Budgeting the School Activities," Ohio Schools, 17, November, 1939, p. 440. Boyd, R. L., "System of Extra—Curricular Accounting,” School Management, 4, November, 1934, p. 36. Bumgardner, W. L. and Barber, J. E., "Financing Student Activities," Nation‘s Schools, 17, May, 1936, pp. 17-22. Burmahln, E. F., "Accounting Procedure for High School and College Athletics," Athletic Journal, October, 1938, pp. 29-31. Burton, R., "Whitewashing the Activities Campaign," Illinois Tsacher, 24, January, 1936, pp. 143-144. Carey, R. B., "Budget Control Plan of Handling Student Activity Funds,“ Nation'g Schoolg, 11, April,‘l933, Chase, C. C., "Financial Support of Extra-Curricular Activ- ities,” American School Board Journal, 91, October, 1935, p. 46. 67 Conlin, J. W., "It Happened in Mecca!" School Activities, 12, September, 1940, p. 4. Eagle, A. K., "Plan for Financing Co-Curricular Activities in the High School," Virginia Journgl 9; Education, 29, April, 1936, pp. 279—290. Forsythe, C. E., “A High School Athletic Budget Survey," Michigan High School Athletic Association Bulletin, May, 1938, pp. 232-236. Harmeyer, C., "Dime a Week Did It," School Activities, 12, September, 1940, p. 10. Hovde, H. 0., "Protecting Student Finances," Business Educational World, 20, May, 1940, p. 801. Jensen, C. J., "Central Accounting for Extra-Curricular Funds," Business Educational World, 19, March, April, May, 1959, pp. 558-560, 670-673, 793, 794. Laflin, A., "Administering the Finances of Student Organ- izations," Business Educational World, 19, September, 1938, pp. 67-70. Laflin, A., "Student Activity Ticket," Journal g: Business Education, 15, June, 1940, p. 27. Lamphier, M., "How do You Handle School Activities Funds,” Ohio Schools, 19, January, 1941, pp. 24-26. Langford, A. G., “Student.Activities Finances," School Activitigg, 10, November, 1938, pp. 113-115. Mansperger, D. E., ”Systematism or Random," Ohio Schoolg, 15, April, 1937, p. 158. IMason, H. V., “Accounting for Extra-Curricular Activity Funds,” School Activities, 11, September, 1939, McCarthy, J. L., “Practical Internal Accounting for Schools," New York State Egucation, 21, January, 1934, pp. 705-707. Morgan, C., "Financing the Activities Program," Nebraska ,Edgcation Journal, 17, March, 1937, p. 82. 68 Morneweck, C. D., "Evaluation of Current Practices in Financing Extra-Curricular Activities," School Activities, 10, September, 1938, pp. 3-5. Mount, J. 3., "Before the House is Stolen," School Executive, 58, February, 1938, pp. 18-19. Olson, M. W.., "Student Activity Program That Works," Minnesota Journgl 9; Education, 16, September, 1935, pp. 7-8. Paulsen, O. 8., “Budgetary Procedures and Accounting Methods for Student Extra-Curricular Activities,” California Quarterly 2; Secondary Education, 7, June, 1932, pp. 265-278. Peshkin, J., ”What is a Workable Plan for Handling Student Finances,“ Eastern Commercial Teachegg} Association .Elghth.lear-Book, pp. 306-311. Rice, L. A., "Responsibility for Extra-Curricular Bookkeeping," Business Educational World, 19, January, 1939, pp. 367-369. Scudder, R. E., "Practical Central Treasurer System,“ Montana Education, 13, March, 1937, p. 8. Schroder, C., ”Activities on the Installment Plan," School Executivg, 58, August, 1939, pp. 10-11. Slobetz, F. B., ”Internal Accounting System," Schoo Activities, 11, November, 1939, pp. 113-114. Spears, H., "Stamp Tax Activity Fee," Nationlg Schools, 23, February, 1939, p. 32. Stotts, F., "School Accounts,‘I School Activities, 12, October, 1940, p. 12. Studebaker, M. E., “Accounting Records and Control for School Activities,“ Teachers' College Journal, 5, September, 1933, pp. 30-34. ‘Walsh, J. H., "Simplified.Activity Accounting System,“ American School Board Journal, 91, July, 1938, p. 62. 69 Wiatt, B.,_"Collection and Administration of Student Fees,” Eastern-Stateg,Association g: Professional School; for Teachegg, 1938, pp. 348-351. Wiles, L. A., "Accounting for Extra-Curricular Activities," National Association for Public School Businegg Officials, (Proceedings) 1937, pp. 255-265. Zeliff, L. A., "Simplified Accounting for Extra-Curricular Funds," Americag School Spard Journal, 99, November, 1939, pp. 50-52. m 40 v t..‘ -l 1‘. flint ‘ ‘ .- g -\ l . ' ‘a‘ d s ‘0” -'\. 5e“- \ 13‘. D I viz-3:1 .'{« '\'\‘¢ .IMWwillIiflllfllgtfluwi