IC 20-41
    ARTICLE 41. EXTRACURRICULAR FUNDS ANDACCOUNTS

IC 20-41-1
    Chapter 1. Accounting for School Functions; ExtracurricularAccount

IC 20-41-1-1
"Treasurer"
    Sec. 1. As used in this chapter, "treasurer" includes an assistanttreasurer or a deputy treasurer.
As added by P.L.2-2006, SEC.164.

IC 20-41-1-2
Accounting as separate funds
    Sec. 2. Any self-supporting programs maintained by a schoolcorporation, including:
        (1) school lunch; and
        (2) rental or sale of textbooks;
may be established as separate funds, separate and apart from thegeneral fund, if no local tax rate is established for the programs.
As added by P.L.2-2006, SEC.164.

IC 20-41-1-3
Custodian responsibilities
    Sec. 3. (a) A person who has charge of the collection, custody,and disbursement of funds collected and expended to pay expensesincurred in conducting any athletic, social, or other school function,the cost of which is not paid from public funds, shall:
        (1) keep an accurate account of all money received andexpended, showing the:
            (A) sources of all receipts;
            (B) purposes for which the money was expended; and
            (C) balance on hand; and
        (2) file a copy of the account with the township trustee, boardof school trustees, or board of school commissioners within two(2) weeks after the close of each school year.
    (b) An account filed under subsection (a)(2) is a public recordopen to inspection by any interested person at any reasonable timeduring office hours.
As added by P.L.2-2006, SEC.164.

IC 20-41-1-4
Forms
    Sec. 4. (a) All forms and records for keeping the accounts of theextracurricular activities in school corporations shall be prescribedor approved by the state board of accounts. The records and affairsof the extracurricular activities may be examined by the state boardof accounts when the state examiner determines an examination is

necessary. The forms prescribed or approved for keeping theseaccounts must achieve a simplified system of bookkeeping and shallbe paid for, along with the bond required in this chapter, from thegeneral fund.
    (b) The funds of all accounts of any organization, class, or activityshall be accounted separately from all others. Funds may not betransferred from the accounts of any organization, class, or activityexcept by a majority vote of its members, if any, and by the approvalof the principal, sponsor, and treasurer of the organization, class, oractivity. However, in the case of athletic funds:
        (1) approval of the transfer must be made by the athleticdirector, who is regarded as the sponsor; and
        (2) participating students are not considered members.
All expenditures of the funds are subject to review by the governingbody of the school corporation.
As added by P.L.2-2006, SEC.164.

IC 20-41-1-5
Requirement of treasurer
    Sec. 5. (a) A public school must have a treasurer for purposes ofthis chapter. The treasurer must be:
        (1) the superintendent or principal of the particular school;
        (2) a clerk of the school corporation; or
        (3) a member of the faculty appointed by the superintendent orprincipal.
This designation must be made immediately upon the opening of theschool term or the vacating of the office of treasurer. Claims shall befiled and paid under sections 7 and 8 of this chapter. The employingor appointing officials of a school may appoint and engage a schooltreasurer or clerk.
    (b) A school corporation may appoint one (1) or more assistant ordeputy treasurers.
    (c) A treasurer is not personally liable for an act or omissionoccurring in connection with the performance of the duties set forthin this chapter, unless the act or omission constitutes grossnegligence or an intentional disregard of the treasurer's duties.
As added by P.L.2-2006, SEC.164.

IC 20-41-1-6
Bond
    Sec. 6. (a) The treasurer shall give a bond in an amount fixed bythe superintendent and principal of the school approximating thetotal amount of the anticipated funds that will come into thepossession of the treasurer at any one (1) time during the regularschool year. Bonds shall be filed with the trustee or board of schooltrustees. The surety on the bonds must be a surety companyauthorized to do business in Indiana. However, the requirement forgiving the bond and the requirement to deposit the receipts in aseparate bank account, as required in section 9 of this chapter, do notapply to any school for which the funds, as estimated by the

principal, will not exceed three hundred dollars ($300) during aschool year.
    (b) The requirements of this chapter may be fulfilled by providinga comprehensive bonding instrument, including a single blanketposition bond, for all extracurricular treasurers. A comprehensivebonding instrument is acceptable instead of individual separatepersonal position bonds.
As added by P.L.2-2006, SEC.164.

IC 20-41-1-7
Responsibilities of treasurer
    Sec. 7. (a) The treasurer has charge of the custody anddisbursement of any funds collected by a collecting authority andexpended to pay expenses:
        (1) approved by the principal or teacher in charge of the school;
        (2) incurred in conducting any athletic, social, or other schoolfunction (other than functions conducted solely by anyorganization of parents and teachers);
        (3) that cost more than twenty-five dollars ($25) during theschool year; and
        (4) that are not paid from public funds.
    (b) The principal or teacher in charge of the school shall designatea collecting authority to be in charge of the collection of any fundsdescribed in this section. Upon collection of any funds, the collectingauthority shall deliver the funds, together with an accounting of thefunds, to the custody of the school treasurer. The principal maydesignate different collecting authorities for each separate accountof funds described in this section.
As added by P.L.2-2006, SEC.164.

IC 20-41-1-8
Treasurer; duties; accurate accounts; reports
    Sec. 8. (a) The treasurer shall keep an accurate account of allmoney received by the collecting authority and expended, showing:
        (1) the sources of all receipts;
        (2) the purposes for which the money was expended; and
        (3) the balance on hand.
A copy of the report, together with all records and files ofextracurricular activities, shall be filed as required under section 3 ofthis chapter.
    (b) However, in a school that has two (2) or more semesters in anyone (1) school year, the treasurer of the school shall file a copy of thetreasurer's financial report of receipts and disbursements with thetownship trustee, board of school trustees, or board of schoolcommissioners not more than two (2) weeks after the close of eachsemester. Records and files of extracurricular activities for the entireschool year shall be filed with the last financial semester report ofany one (1) school year.
    (c) A copy of the report shall be filed with and kept by the citysuperintendent having jurisdiction and the county superintendent

where the superintendent has jurisdiction.
    (d) The records under this section shall be kept for five (5) years,after which they may be destroyed.
As added by P.L.2-2006, SEC.164.

IC 20-41-1-9
Deposits and accounts
    Sec. 9. (a) The treasurer shall deposit all receipts in one (1) bankaccount. The receipts shall be deposited without unreasonable delay.The account is known as the school extracurricular account. Therecords of each organization, class, or activity shall be kept separateso that the balance in each fund may be known at all times.
    (b) The money in the school extracurricular account may beinvested under the conditions specified in IC 5-13-10 andIC 5-13-10.5 for investment of state money. However, investmentsunder this section are at the discretion of the principal. The interestearned from any investment may be credited to the schoolextracurricular account and need not be credited proportionately toeach separate extracurricular fund. The interest earned from theinvestment may be used for any of the following:
        (1) A school purpose approved by the principal.
        (2) An extracurricular purpose approved by the principal.
    (c) Amounts expended under this section for the purposesdescribed in this section are in addition to the appropriation underIC 20-26-5-4(3).
As added by P.L.2-2006, SEC.164.