4:80 - Accounting and Audits

Policy 4:80

Business and Non-Instructional Operations

Accounting and Audits

The School District’s accounting and audit services shall comply with the Requirements for Accounting, Budgeting, Financial Reporting, and Auditing, as adopted by the IL State Board of Education (ISBE), 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 per government accounting standards as directed by the auditor designated by the Board. The Superintendent, in addition to other assigned financial responsibilities, shall report monthly on the District’s financial performance, both income and expense, about the financial plan represented in the budget.

Annual Audit

At the close of each fiscal year, the Superintendent shall arrange an audit of the District funds, accounts, statements, and other financial matters. The audit shall be performed by an independent certified public accountant designated by the Board and be conducted in conformance with prescribed standards and legal requirements. A complete and detailed written audit report shall be provided to each Board member and the Superintendent. The Superintendent shall annually, on or before October 15, submit an original and one copy of the audit to the North Cook Intermediate Service Center.

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 ISBE. The Superintendent shall provide a copy of the Annual Financial Report to the Board before or after it is submitted.

Inventories

The Superintendent or designee is responsible for establishing and maintaining accurate inventory records. The inventory record of supplies and equipment shall include a description of each item, quantity, location, purchase date, and cost or estimated replacement cost.

Capitalization Threshold

The District’s asset capitalization threshold is $1,500.

Disposition of District Property

The Superintendent or designee shall notify the Board, as necessary, of the following so that the Board may consider its disposition: (1) District personal property (property other than buildings and land) that is no longer needed for school purposes, and (2) school site, building, or other real estate that is unnecessary, unsuitable, or inconvenient. 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

The Board of Education authorizes the Superintendent or designee to establish a petty cash fund which shall be used to purchase minor items for school use provided such funds are maintained in accordance with the provisions below and remain in the custody of an employee who is properly bonded according to State law.

Petty cash will be used for supplies which are more efficiently purchased by an individual staff member on an immediate need basis.

Revolving funds and the petty cash system are established in Board policy 4:50, Paying for Goods and Services. 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 the petty cash fund must be directly related to the purpose for which the account was established and supported with documentation, including signed invoices or receipts. Each disbursement shall be approved by the signature of a person other than the custodian. All deposits into the petty cash fund must be accompanied by a clear description of their intended purpose. Petty cash expenditures will be charged, by item, to the appropriate line item account for each school or department. Replenishment of petty cash funds and revolving funds other than petty cash funds are to be approved by the Board each month as part of the list of bills. All revolving and petty cash funds will be audited by an independent auditor annually.

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 the Treasurer and Superintendent, except that checks from an account containing student activity funds and revolving accounts may be signed by the respective account custodian.

Internal Controls

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 other imprudent employee action.

The Superintendent or designee shall annually audit the District’s financial and business operations for compliance including a review of established internal controls and provide the results to the Board.

Adopted: September 8, 1997
Revised: April 23, 2019

Website by SchoolMessenger Presence. © 2019 Intrado Corporation. All rights reserved.