The
Annual Audit
At the close of each fiscal year, the Superintendent or
designee 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 School Board member and to the Superintendent or
designee. The Superintendent or designee
shall annually, on or before November
15,
submit an original and one copy of the audit to the Regional Superintendent of
Schools.
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 designee shall review and discuss the Annual
Financial Report with the Board before it is submitted.
Inventories
The Superintendent or designee is responsible for establishing and maintaining accurate inventory records that, at a minimum, comply with the
Illinois Program Accounting Manual. The inventory record of supplies and equipment shall include 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 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 sites, buildings, or other real estate that is
unnecessary, unsuitable, or inconvenient. Not withstanding 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
or designee 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 Illinois State Board of Education 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
Internal Controls
The Superintendent or designee 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.
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.
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CROSS REF.: 4.10, 4.55, 4.90
Adopted: April 25, 1996
Revised: March 26, 2002
Revised: August 20, 2008