School Law Bulletin [serial] 17, 2 (Spring 1986)

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20 D SCHOOL LAW BULLETIN Some states, like North Carolina, have laws or regula- tions that dictate how school activity funds shall be man- aged and controlled.'^ Many states require that school ac- tivity funds be audited each year. '* North Carolina further requires that the local school board appoint a treasurer at each school to keep a complete record of all "special funds." These "special funds" must be deposited in an official school bank account on which only the principal and the treasur
...er may draw checks. •'^ For North Carolina purposes, the term "special funds" is defined by means of illustrations as "funds realized from gate receipts from interscholastic athletic com- petition, sale of school annuals and newspapers and dues of student organizations [emphasis added]."'* In the absence of state statutes or regulations, some state courts have concluded that the funds raised by student clubs and other forms of extra-class activities are public or quasi- public funds subject to the supervision and control of local boards of education.

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