97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3471

 

Introduced 2/24/2011, by Rep. Daniel Biss

 

SYNOPSIS AS INTRODUCED:
 
105 ILCS 5/2-3.27  from Ch. 122, par. 2-3.27
105 ILCS 5/2-3.28  from Ch. 122, par. 2-3.28
105 ILCS 5/10-17  from Ch. 122, par. 10-17

    Amends the School Code. Requires the State Board of Education to develop and maintain a uniform accounting and reporting system for the receipts and expenditures of school districts. Provides that the accounting records maintained by each district must be coordinated with the uniform accounting system. Requires each district to record the receipts and expenditures of the district in accordance with a uniform classification of accounts or chart of accounts and reports as prescribed by the State Board. Requires each district to submit such reports and statements as may be required by the State Board. Requires the State Board to design, revise, and direct the use of accounting records and fiscal procedures and prescribe uniform classifications for receipts and expenditures for all districts. Sets forth requirements for the accounting system. Provides that the State Board shall prescribe the necessary forms to be used by districts in connection with the uniform accounting system.


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FISCAL NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

 

 

A BILL FOR

 

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1    AN ACT concerning education.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The School Code is amended by changing Sections
52-3.27, 2-3.28, and 10-17 as follows:
 
6    (105 ILCS 5/2-3.27)  (from Ch. 122, par. 2-3.27)
7    Sec. 2-3.27. Budgets and accounting practices-Forms and
8procedures.
9    (a) Subject to subsection (b) of this Section, to To
10formulate and approve forms, procedure and regulations for
11school district accounts and budgets required by this Act
12reflecting the gross amount of income and expenses, receipts
13and disbursements and extending a net surplus or deficit on
14operating items, to advise and assist the officers of any
15district in respect to budgets and accounting practices and in
16the formulation and use of such books, records and accounts or
17other forms as may be required to comply with the provisions of
18this Act; to publish and keep current pamphlets or manuals in
19looseleaf form relating to budgetary and accounting procedure
20or similar topics; to make all rules and regulations as may be
21necessary to carry into effect the provisions of this Act
22relating to budgetary procedure and accounting, such rules and
23regulations to include but not to be limited to the

 

 

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1establishment of a decimal classification of accounts; to
2confer with various district, county and State officials or
3take such other action as may be reasonably required to carry
4out the provisions of this Act relating to budgets and
5accounting.
6    (b) The State Board of Education shall develop and maintain
7a uniform accounting and reporting system for the receipts and
8expenditures of school districts. The accounting records
9maintained by each school district must be coordinated with the
10uniform accounting system. Each school district shall record
11the receipts and expenditures of the district in accordance
12with a uniform classification of accounts or chart of accounts
13and reports as prescribed by the State Board. Each school
14district shall submit such reports and statements as may be
15required by the State Board. The State Board shall design,
16revise, and direct the use of accounting records and fiscal
17procedures and prescribe uniform classifications for receipts
18and expenditures for all school districts. The accounting
19system must be in accordance with generally accepted accounting
20principles and must include both budgetary and proprietary
21(real) accounts. The State Board shall prescribe the necessary
22forms to be used by school districts in connection with the
23uniform accounting system.
24    The accounting system developed by the State Board must be
25developed in such manner as to allow school districts to record
26and report any information required by State or federal law.

 

 

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1The accounting system must be developed in such a manner as to
2show expenditures for each attendance center in a school
3district.
4    The accounting system shall provide records showing at all
5times by funds, accounts, and other pertinent classifications
6the amounts appropriated, estimated revenues, actual revenues
7or receipts, the amounts available for expenditure, total
8expenditures, unliquidated obligations, the actual balances on
9hand, and the unencumbered balances of allotments or
10appropriations for each school district.
11    The accounting system shall allow a person to search and
12manipulate the data and allow for the comparison of data by
13school district and by attendance centers within a school
14district. The accounting system shall be available to the
15public on the State Board of Education's official website.
16(Source: Laws 1961, p. 31.)
 
17    (105 ILCS 5/2-3.28)  (from Ch. 122, par. 2-3.28)
18    Sec. 2-3.28. Rules and regulations of budget and accounting
19systems. Subject to subsection (b) of Section 2-3.27 of this
20Code, to To prescribe rules and regulations defining what shall
21constitute a budget and accounting system required under this
22Act. The rules and regulations shall prescribe the minimum
23extent of verification, the type of audit, the extent of the
24audit report and shall require compliance with statutory
25requirements and standards and such requirements as the State

 

 

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1Board of Education deems necessary for an adequate budget and
2accounting system.
3(Source: P.A. 81-1508.)
 
4    (105 ILCS 5/10-17)  (from Ch. 122, par. 10-17)
5    Sec. 10-17. Statement of affairs.
6    (a) In Class I or Class II county school units the school
7board may use either a cash basis or accrual system of
8accounting; however, any board so electing to use the accrual
9system may not change to a cash basis without the permission of
10the State Board of Education.
11    Subject to subsection (b) of Section 2-3.27 of this Code,
12school boards School Boards using either a cash basis or
13accrual system of accounting shall maintain records showing the
14assets, liabilities and fund balances in such minimum forms as
15may be prescribed by the State Board of Education. Such boards
16shall make available to the public a statement of the affairs
17of the district prior to December 1 annually by submitting the
18statement of affairs in such form as may be prescribed by the
19State Board of Education for posting on the State Board of
20Education's Internet website, by having copies of the statement
21of affairs available in the main administrative office of the
22district, and by publishing in a newspaper of general
23circulation published in the school district an annual
24statement of affairs summary containing at a minimum all of the
25following information:

 

 

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1        (1) A summary statement of operations for all funds of
2    the district, as excerpted from the statement of affairs
3    filed with the State Board of Education. The summary
4    statement must include a listing of all moneys received by
5    the district, indicating the total amounts, in the
6    aggregate, each fund of the district received, with a
7    general statement concerning the source of receipts.
8        (2) Except as provided in subdivision (3) of this
9    subsection (a), a listing of all moneys paid out by the
10    district where the total amount paid during the fiscal year
11    exceeds $2,500 in the aggregate per person, giving the name
12    of each person to whom moneys were paid and the total paid
13    to each person.
14        (3) A listing of all personnel, by name, with an annual
15    fiscal year gross payment in the categories set forth in
16    subdivisions 1 and 2 of subsection (c) of this Section.
17In this Section, "newspaper of general circulation" means a
18newspaper of general circulation published in the school
19district, or, if no newspaper is published in the school
20district, a newspaper published in the county where the school
21district is located or, if no newspaper is published in the
22county, a newspaper published in the educational service region
23where the regional superintendent of schools has supervision
24and control of the school district. The submission to the State
25Board of Education shall include an assurance that the
26statement of affairs has been made available in the main

 

 

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1administrative office of the school district and that the
2required notice has been published in accordance with this
3Section.
4    After December 15 annually, upon 10 days prior written
5notice to the school district, the State Board of Education may
6discontinue the processing of payments to the State
7Comptroller's office on behalf of any school district that is
8not in compliance with the requirements imposed by this
9Section. The State Board of Education shall resume the
10processing of payments to the State Comptroller's Office on
11behalf of the school district once the district is in
12compliance with the requirements imposed by this Section.
13    The State Board of Education must post, on or before
14January 15, all statements of affairs timely received from
15school districts.
16    (b) When any school district is the administrative district
17for several school districts operating under a joint agreement
18as authorized by this Code, no receipts or disbursements
19accruing, received or paid out by that school district as such
20an administrative district shall be included in the statement
21of affairs of the district required by this Section. However,
22that district shall have prepared and made available to the
23public, in accordance with subsection (a) of this Section, in
24the same manner and subject to the same requirements as are
25provided in this Section for the statement of affairs of that
26district, a statement showing the cash receipts and

 

 

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1disbursements by funds (or the revenue, expenses and financial
2position, if the accrual system of accounting is used) of the
3district as such administrative district, in the form
4prescribed by the State Board of Education. The costs of
5publishing the notice and summary of this separate statement
6prepared by such an administrative district shall be
7apportioned among and paid by the participating districts in
8the same manner as other costs and expenses accruing to those
9districts jointly.
10    School districts on a cash basis shall have prepared and
11made available to the public, in accordance with subsection (a)
12of this Section, a statement showing the cash receipts and
13disbursements by funds in the form prescribed by the State
14Board of Education.
15    School districts using the accrual system of accounting
16shall have prepared and made available to the public, in
17accordance with subsection (a) of this Section, a statement of
18revenue and expenses and a statement of financial position in
19the form prescribed by the State Board of Education.
20    In Class II county school units such statement shall be
21prepared and made available to the public, in accordance with
22subsection (a) of this Section, by the township treasurer of
23the unit within which such districts are located, except with
24respect to the school board of any school district that no
25longer is subject to the jurisdiction and authority of a
26township treasurer or trustees of schools of a township because

 

 

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1the district has withdrawn from the jurisdiction and authority
2of the township treasurer and trustees of schools of the
3township or because those offices have been abolished as
4provided in subsection (b) or (c) of Section 5-1, and as to
5each such school district the statement required by this
6Section shall be prepared and made available to the public, in
7accordance with subsection (a) of this Section, by the school
8board of such district in the same manner as required for
9school boards of school districts situated in Class I county
10school units.
11    (c) The statement of affairs required pursuant to this
12Section shall contain such information as may be required by
13the State Board of Education, including:
14        1. Annual fiscal year gross payment for certificated
15    personnel to be shown by name, listing each employee in one
16    of the following categories:
17            (a) Under $25,000
18            (b) $25,000 to $39,999
19            (c) $40,000 to $59,999
20            (d) $60,000 to $89,999
21            (e) $90,000 and over
22        2. Annual fiscal year payment for non-certificated
23    personnel to be shown by name, listing each employee in one
24    of the following categories:
25            (a) Under $25,000
26            (b) $25,000 to $39,999

 

 

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1            (c) $40,000 to $59,999
2            (d) $60,000 and over
3        3. In addition to wages and salaries all other moneys
4    in the aggregate paid to recipients of $1,000 or more,
5    giving the name of the person, firm or corporation and the
6    total amount received by each.
7        4. Approximate size of school district in square miles.
8        5. Number of school attendance centers.
9        6. Numbers of employees as follows:
10            (a) Full-time certificated employees;
11            (b) Part-time certificated employees;
12            (c) Full-time non-certificated employees;
13            (d) Part-time non-certificated employees.
14        7. Numbers of pupils as follows:
15            (a) Enrolled by grades;
16            (b) Total enrolled;
17            (c) Average daily attendance.
18        8. Assessed valuation as follows:
19            (a) Total of the district;
20            (b) Per pupil in average daily attendance.
21        9. Tax rate for each district fund.
22        10. District financial obligation at the close of the
23    fiscal year as follows:
24            (a) Teachers' orders outstanding;
25            (b) Anticipation warrants outstanding for each
26        fund.

 

 

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1        11. Total bonded debt at the close of the fiscal year.
2        12. Percent of bonding power obligated currently.
3        13. Value of capital assets of the district including:
4            (a) Land;
5            (b) Buildings;
6            (c) Equipment.
7        14. Total amount of investments each fund.
8        15. Change in net cash position from the previous
9    report period for each district fund.
10    In addition to the above report, a report of expenditures
11in the aggregate paid on behalf of recipients of $500 or more,
12giving the name of the person, firm or corporation and the
13total amount received by each shall be available in the school
14district office for public inspection. This listing shall
15include all wages, salaries and expenditures over $500 expended
16from any revolving fund maintained by the district. Any
17resident of the school district may receive a copy of this
18report, upon request, by paying a reasonable charge to defray
19the costs of preparing such copy.
20    This Section does not apply to cities having a population
21exceeding 500,000.
22(Source: P.A. 94-875, eff. 7-1-06.)