|
FINANCES
Article I Responsibility.
The Board as a whole is responsible for establishing the financial policies of the Library except as they are regulated by law. The Treasurer's legal responsibilities appear in
75 ILCS16/30-45. The Treasurer is responsible for the execution of the policy and the law regarding finances, and for the bookkeeping, record keeping and reporting procedures to support that policy. The Library Director is responsible to the Treasurer for the execution of the bookkeeping, record keeping and reporting procedures established by law, the Board and the Treasurer.
Article II Bonds.
The amount of the annual Treasurer's Bond shall be set by the Board at the July meeting.
It shall be a minimum of 1/2 of the total funds received by the District in the last previous fiscal year (75 ILCS 16/30-45). The Library Director and the Bookkeeper shall each be bonded for the same amount.
Article III Fiscal Year.
The fiscal year of the District is July 1 through June 30. (75 ILCS 16/35-40)
Article IV Method of Accounting.
Financial statements are prepared in accordance with generally accepted accounting principles for units of local government.
The Library District prepares its financial statements on the basis of cash receipts and disbursements which omit recognition of revenue until received rather than when earned. Expenses are recognized when paid rather than when obliged. However, the cash book is kept open after June 30 so that checks dated prior to June 30 may be approved at the July Board meeting. Expenses obligated prior to June 30 may be paid until September 30.
(75 ILCS 16/30-90) In order to ensure observance of limitations and restrictions placed on the use of public monies, the accounts of the District are maintained in accordance with the principles of "fund accounting."
In the government-wide financial statements, capital assets are valued at historical cost, or estimated historical cost if actual is unavailable, except for donated capital assets, which are recorded at their estimated fair value at the date of donation. Depreciation of all exhaustible capital assets is recorded as an allocated expense in the Statement of Activities, with accumulated depreciation reflected in the Statement of Net Assets. Depreciation is provided over the assets’ estimated useful lives by using the straight-line method of depreciation.
Article V General Fund.
The General Fund shall consist of the proceeds of taxes levied for the maintenance and support of the Library in accordance with 75 ILCS 16/35-5 of the Illinois Compiled Statutes together with miscellaneous income including fines and non-resident fees. Expenditures from this fund shall be made only upon warrants certified to be correct by the Library Director and approved or ratified by the Board. Certification of the payroll will be made at the Board meeting following payday. Disbursements shall be by checks signed by two of four authorized Trustees. A check-signing machine with the signatures of two of the four authorized trustees may be used with appropriate control procedures. The authorized Trustees are the four Officers of the Board. Balances may be carried in the General Fund from year to year to meet reasonable cash flow needs concomitant with applicable law or transferred to the Special Reserve Fund. Transfers of year ending balances must be accomplished prior to September 30. (75 ILCS 16/35-25)
Article VI Bond Fund.
A Bond Fund when in use shall consist of the proceeds of taxes levied in accordance with 75 ILCS 16/40-10 of the Illinois Compiled Statutes for the purpose of meeting interest and redemption payments on outstanding bonds. Disbursements shall be made by the Treasurer as necessary.
Article VII Trust Fund.
The Trust Fund shall consist of all money or proceeds of the sale of personal property or real estate donated to the Library for future unbudgeted purposes designated by the donor. Expenditures of accumulated funds require Board approval. The Library Director is authorized to expend monies donated for the purchase of books and other library material. Other expenditures shall be in accordance with the Board's policy on gifts and donations. Checks shall be signed using the procedure established for the General Fund. (75 ILCS 16/30-75) Any money not designated for a special purpose by the donor must be transferred into the General Fund at the close of the fiscal year.
Article VIII Special Reserve Fund.
The Special Reserve Fund was established by Cook Memorial Public Library District Ordinance 1974/75 #6. Such a fund is authorized in 75ILCS16/40-50 of the Illinois Compiled Statutes. A plan including cost estimates shall be established and amended as required by law. Each year, part of all of the unexpended balance of the proceeds of the public library tax may be deposited in the Special Reserve Fund for the purpose of future construction, purchasing a site, purchasing, repairing, remodeling or improving an
existing building, building an addition to an existing building, or for purchasing appropriate equipment. Non-recurring expenditures not to exceed $1,000 may be authorized by the Library Director. Otherwise, expenditures require prior Board approval. Checks are signed using the procedure established for the General Fund. (75 ILCS 16/40-5/50)
Article IX Working Cash Fund.
The Working Cash Fund was established in accordance with 75 ILCS 16/30-95 of the Illinois Compiled Statutes by Cook Memorial Public Library District Ordinance 1974/75 #7. The Fund enables the District to have sufficient money at all times to meet demands for committed expenditures. The balance in the Fund shall not exceed 2%of the full, fair cash value of all taxable property within the District in 1978 ($724,161). Each year all or part of the unexpended balance of the proceeds of the public library tax may be deposited in the working cash fund. Monies in the Fund are not considered an asset of the Library and may be carried forward from year to year without reducing a future library levy. The proceeds of the Working Cash Fund may be transferred to the General Fund by action of the Board and disbursed in anticipation of the collection of taxes. Taxes collected subsequent to such action shall replenish the Working Cash Fund to its original balance. (75 ILCS 16/30-95)
Article X Illinois Municipal Retirement and Social Security Fund.
The Illinois Municipal Retirement and Social Security Fund was established in accordance with 40 ILCS 5/7-171 of the Illinois Compiled Statutes. Membership in the Illinois Municipal Retirement Fund was accomplished by Cook Memorial Public Library District Ordinance 73-4. The Fund was established to provide monies for municipality contributions to the IMRF and Social Security. Income is provided by a special tax levied in addition to all other levies made by the Library. The County Clerk, in reducing tax levies, shall not consider the IMRF and Social Security tax as part of the general tax levy which may be extended. The amount of the levy shall be determined by the Library Board. Revenue derived from the levy shall be deposited in the Fund and used only for the purposes specified. Disbursements shall be made in the manner established for the General Fund.
Article XI Transfers.
Transfers between library funds permitted by law require a majority vote of the Trustees present at any meeting of the Board.
Article XII Audit of the Treasurer.
A licensed public accountant shall be engaged by the Board to audit the funds and accounts of the Library as provided in 75 ILCS 16/30-65 c. as soon as possible after the end of the fiscal year. A copy of the professional audit must be forwarded to the State Librarian and the County Clerk of Lake County prior to December 30. The State Comptroller requires an
Annual Report in its format prior to December 30. (50 ILCS 310/0.01)
Article XIV Report of Receipts and Disbursements.
A report of Receipts and Disbursements shall be prepared and certified by the Treasurer at the close of each fiscal year in accordance with 30 ILCS 15/0.01 et seq. of the Illinois Compiled Statutes. A certified copy of the Report shall be published in a newspaper of local circulation prior to December 31each year. The original notarized copy shall be filed with the County Clerk within ten days after publication.
Article XV Records Filed and Retained.
The Treasurer shall insure that the documents to be retained are filed with the Secretary.
Article XVI Control.
The Treasurer and the Library Director shall maintain financial practices which shall afford security for District monies.
Adopted: 10/19/76
Revised: 7/18/95
Revised: 2/17/98
Revised: 3/20/01
Revised: 1/20/04
Revised: 3/20/07
|
