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 ILCS 16/30-45. 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. The Library District follows the financial procedures established by Illinois Statute.
Article II. Treasurer’s Bond/Insurance Policy
The amount of the annual Treasurer’s Bond is set by statute (75 ILCS 16/30-45). The Library Director and other financial personnel will be bonded. The amount of the bond shall be set by the Board in July upon the recommendation of the auditor.
As provided by statute (75 ILCS 16/30-45), as an alternative to the Treasurer’s Bond, the Library District may secure an insurance policy with coverage for negligent or intentional acts by District officials and employees.
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 a modified cash basis. The accounts of the District are maintained in accordance with the principles of fund accounting. Funds established include but may not be limited to:
- General Fund
- IMRF/Social Security Fund
- Special Reserve Fund
- Working Cash Fund
- Project Fund
Article V. Disbursements
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.
Article VI. Transfers
Transfers between library funds permitted by law require a majority vote of the Trustees present at any meeting of the Board.
Article VII. 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 16/30-65c.
Article VIII. 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 31 each year. The original notarized copy shall be filed with the County Clerk within ten days after publication.
Article IX. Records Filed and Retained
The Treasurer shall insure that the documents to be retained are filed with the Secretary.
Article X. Control
The Treasurer and the Library Director shall maintain financial practices which shall afford security for District monies.