The guide contains five chapters. Chapter 1 suggests basic
principles that should be considered when the counties establish
their local policies governing School Activity Funds. Contents
of this chapter include common sources of revenue that will
be anticipated from school activities, out-of-school and miscel-
laneous sources of receipts, general provisions for expenditures,
and management of School Activity Funds.
 Chapter 2 of the guide presents a suggested accounting sys-
tem utilizing the recommended minimum regular accounts. Some
schools may wish to modify this accounting system so as to
meet their individual needs. The suggested accounting system
is based on generally accepted school procedures, some of which
are as follows:
 1. Official receipts should be issued for all money received.
 2. All money received should be deposited in a bank.
 3. All money expended should be expended by check, except
 for small cash purchases paid from the petty cash fund.
 4. Supporting documents should be kept for all expenditures
 made.
 5. Bank reconciliation statements should be made each month.
 6. Monthly and yearly financial statements should be pre-
 pared.
 7. An audit should be made each year, and copies of the audit
 should be filed with persons having administrative author-
 ity for the school.
 Chapter 3 of the guide classifies and defines the minimum
accounts which make up the component parts of the School Ac-
tivity Funds. Money which an individual school may be required
to account for comes from several sources but can be grouped
into two major categories: Student Activities and Non-Student
Activities. The transactions involving both student activities and
non-student activities are recorded under the same accounts as
they appear on the monthly report form for internal accounts,
FA-35p. A separate identification can be made by further break-
downs-as needed by the individual schools-under the minimum
accounts.
 Chapter 4 includes the State-adopted accounting forms with