This chapter surveys a principal's risks and responsibilities in relation to managing school income from the following: co-curricular activities, expenditures for various equipment needs, property inventories, contracts issued for commemorative school items, custodianship of school textbooks, proceeds from merchandising certain items in school buildings, safeguarding office and audiovisual equipment, funds generated by sale of workbooks and other school supplies, and proceeds from admissions to various athletic and social activities. Each of the foregoing, involving the legal responsibility of the principal, are examined in light of the statutory and case law guidelines that are necessary to good building and program management. The paper concludes that many principals report that a majority of their time is spent managing school operations. How efficiently they handle operational problems will be reported on their annual evaluation. (Author/LD)