The School District’s accounting and audit services shall comply with the Requirements for Accounting, Budgeting, Financial Reporting, and Auditing, as adopted by the Illinois State Board of Education, State and federal laws and regulations, and generally accepted accounting principles. Determination of liabilities and assets, prioritization of expenditures of governmental funds, and provisions for accounting disclosures shall be made in accordance with government accounting standards as directed by the auditor designated by the Board. The Superintendent or a designee, in addition to other assigned financial responsibilities, shall report monthly on the District’s financial performance, both income and expense, in relation to the financial plan represented in the budget.
Annual Financial Report
The Superintendent or designee shall annually prepare and submit the Annual Financial Report on a timely basis using the form adopted by the Illinois State Board of Education. The Superintendent or a designee shall review and discuss the Annual Financial Report with the Board before it is submitted.
At the close of each fiscal year, the Superintendent or a designee shall arrange to have the District books and accounts audited by an independent certified public accountant designated by the School Board in conformance with prescribed standards and legal requirements. A complete and detailed written audit report shall be provided to each School Board member and to the Superintendent.
The Superintendent or a designee shall annually, on or before October 15, submit an original and one copy of the audit to the Regional Superintendent of Schools.
The Superintendent is responsible for developing and maintaining an inventory of District buildings and capital equipment. The inventory record of equipment shall include such items as a description of each item, the quantity, the location, the date of purchase, and the cost or the estimated replacement cost.
Disposition of District Property
The Superintendent shall notify the Board, as necessary, of any (1) District personal property no longer needed for school purposes, and (2) school sites, buildings, or other real estate that is unnecessary, unsuitable, or inconvenient, so that the Board may consider its disposition. Notwithstanding the above, the Superintendent or designee may unilaterally dispose of personal property of a diminutive value.
Taxable Fringe Benefits
The Superintendent or designee shall: (1) require that all use of District property or equipment by employees is for the District’s convenience and best interests unless it is a Board-approved fringe benefit, and (2) ensure compliance with the Internal Revenue Service regulations regarding when to report an employee’s personal use of District property or equipment as taxable compensation.
Controls for Revolving Funds and Petty Cash
Revolving funds and the petty cash system are established in Board policy 4:50, Payment Procedures. The Superintendent shall: (1) designate a custodian for each revolving fund and petty cash fund, (2) obtain a bond for each fund custodian, and (3) maintain the funds in compliance with this policy, State law, and ISBE rules. A check for the petty cash fund may be drawn payable to the designated petty cash custodian. Bank accounts for revolving funds are limited to a maximum balance of $500.00. All expenditures from these bank accounts must be directly related to the purpose for which the account was established and supported with documentation, including signed invoices or receipts. All deposits into these bank accounts must be accompanied with a clear description of their intended purpose. The Superintendent or designee shall include checks written to reimburse revolving funds on the Board’s monthly listing of bills indicating the recipient and including an explanation.
Control Requirements for Checks
The Board must approve all bank accounts opened or established in the District’s or a District school’s name or with the District’s Federal Employer Identification Number. All checks issued by the School District must be signed by either the Treasurer or Board President, except that checks from an account containing student activity funds and revolving accounts may be signed by the respective account custodian.
The Superintendent is primarily responsible for establishing and implementing a system of internal controls for safeguarding the District’s financial condition; the Board, however, will oversee these safeguards. The control objectives are to ensure efficient business and financial practices, reliable financial reporting, and compliance with State law and Board policies, and to prevent losses from fraud, waste and abuse as well as employee error, misrepresentation by third parties, or imprudent employee action.
The Superintendent or designee shall annually audit the District’s financial and business operations for compliance with established internal controls and provide the results to the Board. The Board may from time-to-time engage a third party to audit internal controls in addition to the annual audit.
LEGAL REF.: 105 ILCS 5/2-3.27, 5/2-3.28, 5/3-7, 5/3-15.1, 5/5-22,
5/10-21.4, 5/10-22.8 and 5/17-1 et seq.
23 Ill. Admin. Code, Ch. 110 and 125.
ADOPTED: October 4, 1999
REVISED: December 22, 2016, August 2018