Section 110.40  Revenue Accounting

a)         Transactions to be recorded in the revenue ledger are those that represent the receipt of cash without creating a liability or without canceling an asset. For example, tax collections are revenues, but cash received from the sale of tax anticipation warrants is not a revenue since a concurrent obligation is incurred to repay at a later date. Revenues act to increase the fund balance, i.e., the equity of the fund. If the LEA is on a cash basis, revenues are recorded only when actually received. If the LEA is on a modified accrual basis, revenues are recorded when earned.

b)         School system revenues are derived from these sources:  local, state, federal, and flow-through.

1)         Revenue from local sources is the amount of money earned within the boundaries of the LEA and available for its use (1000 Revenue).

2)         Revenue from state sources is revenue from funds collected by the state and distributed to LEA's (3000 Revenue).

3)         Revenue from federal sources is revenue from funds collected by the federal government and distributed to LEA's. It is unimportant whether the funds are distributed directly to the LEA system by the federal government or through some intervening agency such as the state (4000 Revenue).

4)         Flow through revenue is money received from another LEA.  This revenue represents funds for specific grant-related purposes (2000 Revenue).

c)         Revenue transactions must be described and coded as to the specific sources from which they are derived or to which they are attributable.

(Source:  Amended at 18 Ill. Reg. 5178, effective March 22, 1994)