TN Code § 49-2-110 (2021)
2021 Tennessee Code|Title 49 - Education|Chapter 2 - Local Administration|Part 1 - General Provisions|§ 49-2-110. Student Activity Funds

  The several schools may, if authorized by the particular board of education having jurisdiction over the school or schools, receive funds for student activities as provided in this section and for events held at or in connection with the school, including contracts with other schools for interschool events; and funds derived from such sources shall be the property of the respective schools; however, the board of education granting the authorization shall provide for its school system reasonable regulations, standards, procedures and an accounting manual covering the various phases of student body activity funds and other internal school funds accounting, including, but not limited to:  The bonding of those who are responsible for handling the funds;   The proper handling of cash receipts, the making of deposits, the management of funds, the expenditures of funds and the accounting for funds;   The auditing of funds;   The making of financial reports;   The carrying of necessary insurance;   The use of proper business and accounting forms;   The collection of state and federal taxes;   The purchase of supplies and equipment;   The powers and responsibilities of the principal of the school in connection with the handling of student body activity funds and other internal school funds;   The preparation of a student body activity fund budget and the budgetary control of expenditures; and   Ways and means of evaluating and improving all phases of student body financial activities and the handling of other internal school funds in accordance with accounting practices and procedures as are generally recognized in public school systems.     The manual referenced in subsection (a) shall be published in accordance with the rules, regulations, policies and procedures of the state publications committee.   The school shall not require any student to pay a fee to the school for any purpose, except as authorized by the board of education, and no fees or tuitions shall be required of any student as a condition to attending the public school or using its equipment while receiving educational training.    The principal of each school shall have the duty of instituting and following the reasonable regulations, standards, procedures and the accounting manual adopted by the board of education having jurisdiction over the school.   The principal shall be liable to account for the safekeeping and handling of all funds of every character raised by student activities, school services and school events, regardless of the sources of the funds or the purpose for which they were raised.   The principal shall not be liable to account for the safekeeping and handling of funds raised by organizations excluded from the record keeping requirements of this section unless the funds are in the principal's sole custody.     The department of education shall prepare a uniform accounting policy manual for local school systems, subject to the approval of the comptroller of the treasury and the commissioner of finance and administration, and each local school system is required to adopt the manual when issued and maintain all activity fund books and records in accordance with the requirements of the manual.   Organizations composed of parents and teachers or parents and students working in coordination, including, but not limited to, parent-teacher associations, parent-teacher organizations, band booster clubs and athletic support organizations, shall not be required to utilize or conform to any record keeping or accounting requirements provided for in the policy manuals or otherwise, and are excluded from the accounting, record keeping and other requirements of this section.    If funds raised by organizations composed of parents and teachers or parents and students are used in a manner that benefits less than the student body as a whole, then no provision of § 49-2-203 or the uniform accounting policy manual for local school systems shall be construed to prohibit such use of funds; provided, that such use:  Benefits the overall school program; and   Is subject to the policies of the local board of education.     This subsection (g) shall not be construed to prohibit the use of funds in any manner that was authorized prior to April 17, 1995, under § 49-2-203 and the uniform accounting policy manual for local school systems.