ITEM NUMBER: 6.E.
School Board Regular Meeting
- Meeting Date:
- 07/08/2019
- Prepared By:
- Eric Hudspith
Item Type:
Action
Subject:
Act on Resolution Regarding Board Control of Extracurricular Activities
Background:
Student Activities are authorized under Minnesota Statutes, section 123B.49. Student activity accounts are for extracurricular activities where funds are raised by the students and for the students that are currently enrolled. The District has numerous Student Activities operating under the guidelines of School Board Policies 712 and 725 and currently have all been approved by the School Board as “Not Under Board Control.” This means the accounting for revenues and expenditures have not been reported and approved by the School Board similar to other revenues and expenditures.
In January 2017, the Governmental Accounting Standards Board (GASB) issued Statement 84, which establishes criteria for identifying and reporting fiduciary activities for all state and local governments. The statement was effective on July 1, 2019.
Minnesota Department of Education (MDE) has released guidance for districts on how to comply with GASB 84. Due to the recent omnibus education bill signed into law (2019 First Special Session, Chapter 11, Article 1), school districts must move Student Activities from “Not Under Board Control” to “Under Board Control” to be in compliance with GASB 84 and the Laws of Minnesota. Attachment (A) shows the particular changes to MN State Statute 123B.49, subdivision 4.
To help districts get started with this important shift, Minnesota School Boards Association (MSBA) has provided the following resolution for school boards. MSBA also plans to release an updated model policy that will need to be modified by the School Board during the next school year to comply with the updated MN State Statute 123B.49.
RESOLUTION REGARDING BOARD CONTROL OF EXTRACURRICULAR ACTIVITIES
WHEREAS, Minnesota Session Laws 2019, 1st Special Session, CH. 11, Art. 1, Sec. 5 will require changes in the accounting for student activity funds and school boards must take charge of and control all student activities of the public schools in the district and that all money received or expended for extracurricular activities shall be recorded in the same manner as other revenues and expenditures of the district;
THEREFORE, BE IT RESOLVED, that the School Board of Mankato Area Public Schools, Independent School District No. 77, directs the district’s administration to implement the requirements of Minnesota Session Laws 2019, 1st Special Session, CH. 11, Art. 1, Sec. 5.
In January 2017, the Governmental Accounting Standards Board (GASB) issued Statement 84, which establishes criteria for identifying and reporting fiduciary activities for all state and local governments. The statement was effective on July 1, 2019.
Minnesota Department of Education (MDE) has released guidance for districts on how to comply with GASB 84. Due to the recent omnibus education bill signed into law (2019 First Special Session, Chapter 11, Article 1), school districts must move Student Activities from “Not Under Board Control” to “Under Board Control” to be in compliance with GASB 84 and the Laws of Minnesota. Attachment (A) shows the particular changes to MN State Statute 123B.49, subdivision 4.
To help districts get started with this important shift, Minnesota School Boards Association (MSBA) has provided the following resolution for school boards. MSBA also plans to release an updated model policy that will need to be modified by the School Board during the next school year to comply with the updated MN State Statute 123B.49.
RESOLUTION REGARDING BOARD CONTROL OF EXTRACURRICULAR ACTIVITIES
WHEREAS, Minnesota Session Laws 2019, 1st Special Session, CH. 11, Art. 1, Sec. 5 will require changes in the accounting for student activity funds and school boards must take charge of and control all student activities of the public schools in the district and that all money received or expended for extracurricular activities shall be recorded in the same manner as other revenues and expenditures of the district;
THEREFORE, BE IT RESOLVED, that the School Board of Mankato Area Public Schools, Independent School District No. 77, directs the district’s administration to implement the requirements of Minnesota Session Laws 2019, 1st Special Session, CH. 11, Art. 1, Sec. 5.
Recommended Action:
The administration recommends that the School Board take action to approve the resolution to implement the change in student activity accounting effective on July 1, 2019.