Student activity funds checked every month, with every club dollar tied to its vote and every gap cited
Gaps found the month they happen, not at year end, with every dollar tied to its vote.
See one case, screen by screen ↓Student Activity Fund Audit is software that checks a district's student activity funds every month instead of once a year. Eight agents read the club minutes, receipts, purchase orders, travel claims, cash count sheets and deposit slips, lay each dollar out in the order it should move from the club vote to the payment, and draft a finding for every gap. The internal auditor approves each finding with a reason code, and the principal acknowledges it on the record.
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Student activity funds are the small bank accounts every school keeps for its clubs, classes, teams and student council — ASB accounts in California and Washington. Students vote to raise and spend money in their meeting minutes, an advisor and the principal approve, a school bookkeeper writes the purchase order and the check, and fundraiser cash is counted, deposited and posted. Under GASB Statement 84, most of these accounts now sit in the district's governmental funds, because the district approves the spending and the fundraisers, so student activity fund accounting is part of the audited statements, not a side ledger. In California, Education Code 48933(b) requires three approvals before student body funds are spent: a district designee, the advisor and a student representative.
Today a district's school internal audit visits a sample of schools once a year, working from paper binders and from minutes a student secretary typed or wrote by hand, often in Spanish or another home language. The ledger shows who posted a deposit, not who counted the cash. So spending nobody voted for and cash handled by one person surface months after the money is gone, and the same findings return every year: no approval, a missing receipt, one counter, a late deposit. Student Activity Fund Audit puts eight agents in front of that reading every month, so the internal auditor's time goes to the gaps, and every gap arrives with the page it came from.
Estimated split of one school's audit, in hours, by hand and with the agents. The 'before' column totals 13 hours, within the one to two auditor days a school visit typically takes; the 'after' column is the auditor's review time, about 2 hours — our arithmetic, kept modest.
Eight agents read the minutes, receipts and cash sheets and lay every dollar out in order; the auditor approves and the principal acknowledges.
Tuesday, November 10, 2026: the October close at Marlow Bay Unified School District, 62 schools and 1,140 club accounts. Here is what happens to Ferncastle Middle School's month, screen by screen, in the working solution.
The agents read all 4,310 October transactions in 62 schools and found 37 gaps in 19 schools; 43 schools are clean and 6 findings are drafted and waiting. The bank statement feed for 3 schools arrived late, so the agents re-read those schools' deposits at 6:42 AM and nothing was missed.
Ferncastle Middle School: 2 findings drafted and waiting for you.
Ferncastle's 21 club accounts run down the left with their gap counts: Club de Folklórico has 2, the Robotics Club 1. Each payment is a row of six dominoes in the order money should move — club vote, advisor, principal, purchase order, receipt, payment — and each deposit has its own row, from the fundraiser's approval to the posting.
Naomi opens the club-vote domino. The September 18 minutes, typed in Spanish by the student secretary, say "se aprobó gastar hasta $1,000 en vestuario", beside the English reading "approved spending up to $1,000 on costumes": 14 in favor, 0 against, page 1, motion 1, confidence 0.96. Student names show as Student 1 · president, Student 2 · treasurer.
Check 4417 paid Tlalli Costume Works $1,240 on October 6: invoice TCW-2219, 12 skirts at $85, 12 hair ribbons at $10 and $100 shipping. The advisor's requisition, the principal's approval and PO-FMS-0931 were all written for $1,240, so every approval was there — but the vote was for $1,000.
$240 over the club vote of up to $1,000.
The September 22 tamale sale sold 463 tamales at $5, $2,315, matched by the deposit and the bank credit. But the cash count sheet names Lucía Ortega as counter and as second counter, and she prepared and delivered the deposit herself. The agent read the names and signature lines on the sheet and the slip, at confidence 0.93, not the user who posted the deposit.
Never accuses anyone: it shows the evidence and a person decides.
The Drafting agent wrote CA-FMS-2026-10 with two findings — the costume purchase over the club vote and the one-person cash count — each as condition, criteria, cause, effect and fix, citing the minutes, the invoice, the count sheet and deposit slip 0923-114. Jonah prepared it at 8:52 AM. Approve stays locked until Naomi picks a reason code, and the person who prepares a finding can never approve it.
Naomi approved at 9:38 AM with AF-02 · Spending over the club vote and AF-05 · One person counted and deposited, and sent it at 9:41 AM. Gloria chooses her plan: the club votes on the extra $240 at its November 19 meeting, and from today two people count all cash collected and the bookkeeper makes the deposit. The plan is due November 24, 2026.
Principals acknowledge within 10 school days; on day 11 the action escalates to the Assistant Superintendent for Business. Ferncastle's action shows as acknowledged; across the district 7 actions are open, 2 of them overdue, and reminders go to several principals in one action.
At 5:58 AM the Sampling agent drew 75 October transactions, 45 at random by school size and 30 weighted by risk, with seed 20261101-4417 logged so anyone can draw it again. 52 are tested and the 4 exceptions — Ferncastle's check 4417 among them — are now findings. A redraw needs a written reason.
The trail runs from the Document reader's 9,184 October documents at 4:30 AM to Gloria's acknowledgement at 10:05 AM, people and agents alike, and is never edited. Priya reads and exports the pack, redacted by default, and can change nothing.
The same October close, seen by the four people who carry it — what their month looked like, and what it looks like now.
Eight agents read the minutes, receipts and cash sheets and lay every dollar out in order; the auditor approves and the principal acknowledges.
Runs each school's month close: gathers the ledger, the bank feed and the scanned documents, runs the other agents in order, and keeps the close clock.
Reads scanned minutes, receipts, invoices, count sheets, deposit slips, purchase orders and travel claims in English, Spanish, Vietnamese and Tagalog, and cites every value to its page.
Finds each motion in the minutes, its amount ceiling and its vote, and ties every disbursement to the vote that allowed it.
Reads the names and signatures on count sheets, deposit slips and approvals, and flags the same person in two roles that must differ.
Reconciles every fundraiser: units sold times price against the count, the deposit, the bank and the posting, including online sales.
Draws the auditor's sample at every month's close, half at random by school size and half weighted by risk, so year end is already tested.
Writes each finding as condition, criteria, cause, effect and recommendation, with the evidence attached, and the corrective action note to the principal in plain words.
Classifies each activity account under GASB 84 with its basis and builds the year-to-date schedule for the financial statements.
Approves with a reason; the principal acknowledges. The agents propose; a named person decides.
The assistant answers from the records, cites the document and page, and opens the screen it is talking about.
Why is the Folklórico costume purchase flagged?
Check 4417 paid $1,240 to Tlalli Costume Works on October 6. On September 18 the club voted to spend up to $1,000: "se aprobó gastar hasta $1,000 en vestuario". The requisition left the minutes date blank. So $240 was spent without a vote.
Which schools had one person count and deposit cash?
Six October deposits, Ferncastle Middle School's $2,315 tamale sale among them. The other 1,706 deposits were counted by two people.
Pull October's sample for the external auditor
It is already drawn: 75 transactions, 45 at random by school size and 30 weighted by risk, seed 20261101-4417. 52 are tested with 4 exceptions, and each exception is now a finding.
Draft the note to Ferncastle's principal
The Drafting agent wrote it at 8:31 AM and Jonah Price prepared it at 8:52 AM: two findings, the costume overspend and the one-person cash count, each with its fix and the documents attached. It needs your approval with a reason code before it is sent.
13 screens from the working solution, on its sample data. Pick one to see it large.
The audit rules every school is checked against are settings, versioned and on the audit trail.
| Setting | Default | Choose from |
|---|---|---|
| Spending over the club vote | $0 tolerance | The tolerance before a difference is a gap |
| Deposit window | 2 school days | From the end of the sale |
| Counters on all cash collected | 2 | Two different people sign; the counter never makes the deposit |
| Purchase order date | On or before the invoice | On or off |
| Cash look-back for patterns | 60 days | How far back the Segregation agent reads |
| Principal acknowledgement | 10 school days | Escalates to the Assistant Superintendent for Business on day 11 |
| Agent confidence threshold | 0.85 | Below it, a person reads the page |
| Keep financial records | 7 years after the fiscal year | Legal hold per school or club; exports redacted by default |
Every figure is labelled: a target the solution is built to, an estimate, a typical published result, or a proven one.
Sources: GASB Statement 84, Fiduciary Activities (effective date as postponed by GASB Statement 95) · Fiscal Crisis and Management Assistance Team, Fiscal Alert: GASB 84 and its Impact on Associated Student Body Accounts (May 2020) · California Education Code 48933(b) (three approvals before student body funds are spent) · a large urban school district's published internal audit of student body accounts at 24 schools, July 2018 to February 2019 (fundraisers without approval at 10 of 24 schools; purchases not approved in advance at 8 elementary schools) · "demo" = seen in the working solution, on its sample data · "target" = design goal, measured in the live solution · "typical" = published figures · "estimated" = our arithmetic from published inputs. Marlow Bay Unified School District, its schools, clubs and vendors, and the people named on this page are fictional — characters and sample data in the working solution.
Student Activity Fund Audit is software that checks a district's student activity funds every month instead of once a year. Eight agents read the club minutes, receipts, purchase orders, travel claims, cash count sheets and deposit slips, lay each dollar out in the order it should move from the club vote to the payment, and draft a finding for every gap. The internal auditor approves each finding with a reason code, and the principal acknowledges it on the record.
Student activity funds, or school activity funds, are the accounts a school keeps for its clubs, classes, teams and student council — ASB accounts in California and Washington. Students vote to raise and spend the money, an advisor and the principal approve, and a school bookkeeper writes the purchase order and the check and posts the deposits.
Usually, yes. Under GASB Statement 84, an activity fund is reported in the district's governmental funds when the district is administratively involved — for example, the principal co-approves spending and the board approves fundraisers. In the working solution's sample district, the Reporting agent classifies 1,118 accounts as governmental and 22 scholarship and memorial accounts held for named students as custodial, each with its basis, and the director of fiscal services approves any reclassification.
The Minutes agent reads each motion in the minutes — its date, purpose, amount ceiling and vote — in the language the students wrote them, and ties every disbursement to the vote that allowed it. A payment over the ceiling is tinted with the difference, and a payment with no vote is a gap. It never treats an advisor's signature as a student vote.
The Segregation agent reads the names and signatures on every cash count sheet, deposit slip and approval, not only the system user who posted the entry. It flags the same person as counter and second counter, as counter and depositor, or as preparer and approver, and shows the lines; a person decides what it means. At the October close it read 1,712 deposits and flagged 6.
No. The agents read, match, draft and sample; they never approve a finding, send a notice, write off a shortfall or reclassify an account. Values below the confidence threshold go to a person.
Yes. A staff auditor prepares each finding, the internal auditor approves it with a reason code, and the person who prepared it can never approve it. The principal acknowledges with a plan and a date, and an external auditor can read and export everything but change nothing.
The Agentic Solution Engine builds and deploys it from your requirements and documents — your board policy, your audit rules and a month of your schools' records — and it goes live once every quality gate has passed. We will walk you through it on your own school accounts first.
Every federally funded buy documented the day it is requested, with its proof.
1-min demoSingle Audit PreparationRepeat findings caught two months before fieldwork, each with a signed plan.
1-min demoSection 117 Foreign Gift ReportingNo foreign source missed or understated, every reported line traced to its record.
1-min demoWe'll run Student Activity Fund Audit on a month of your own schools' minutes, receipts and deposits.