Board Policy 3410

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 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, 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 Audit

     At the close of each fiscal year, the Superintendent or designee shall arrange to have the District books and accounts audited by an independent certified public accountant designated by the Board in conformance with prescribed standards and legal requirements. A complete and detailed written audit report shall be provided to each Board Member and to the Superintendent.  The Superintendent shall annually, on or before October 15, submit an original and one copy of the audit to the Regional Superintendent of Schools.

     

    Inventories

     The Superintendent or designee is responsible for developing and maintaining the 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, unless the supplies and equipment are acquired by the District pursuant to a federal or State grant award, in which case the inventory record shall also include the information required by 2 C.F.R. 200.313, if applicable. The Superintendent, or designee, shall establish procedures for the management of property acquired by the District under grant awards that comply with federal and State law.

     

    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, or designee shall review and discuss the Annual Financial Report with the Board before it is submitted.

     

    Capitalization Threshold

    To be considered a capital asset for financial reporting purposes, a capital item must be at or above a capitalization threshold of $1,000-$5,000 depending on the item and have an estimated useful life greater than one year. To be considered a capital asset for insurance coverage purposes, a capital item must be at or above a capitalization threshold of $1,000 and have an estimated useful life greater than one year. The following Capitalization Table should be used when developing the estimated useful life and calculating the depreciation expense for an item using the straight line depreciation method.

     

    Capitalization Thresholds:

     

     

    Land and Land Improvements

    $5,000

     

    Buildings and Building Improvements

     

    $5,000

     

    Infrastructure and Site Improvements

    $50,000

     

    Equipment and Furnishings

    $2,500

     

     

    Technology and Software

     

    $1,000

     

    Estimated Useful Lives:

     

    Land and Land Improvements (N/A)

    Buildings and Building Improvements (20-50 years)

    HVAC and Boiler Systems

    20-25 years

     

    Roof and Gutter Systems

     

    25-30 years

     

    Electrical and Plumbing Systems

     

    30-50 years

     

    Infrastructure and Site Improvements (20-50 years)

     

    Parking Lots/Sidewalks/Curbs

     

    20-25 years

     

    Landscaping and Trees

     

    25-30 years

     

    Sewer and Lighting

     

    30-50 years

     

    Equipment and Furnishings (5-20 years)

     

     

    Office Equipment

    5-15 years

     

    Cars/Trucks

    7-10 years

     

    Telephones

     

    10-12 years

     

    Library Books

     

    10-15 years

     

    Tables/Desks/Chairs

     

    10-15 years

     

    Fixtures

     

    15-20 years

     

    Technology and Software (5-10 years)

     

     

    Computers

     

    4-5 years

     

    Software

     

    5-7 years

     

    Network Equipment

     

    5-10 years

     

    Technology Infrastructure

     

    8-10 years

     

     

    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. The Superintendent, or designee, shall establish procedures for the disposition of property acquired by the District under grant awards that comply with federal and State law.

     

    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 3430, Petty Cash. 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 or fiduciary 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, employee error, misrepresentation by third parties, or imprudent employee action.