HB3471 97TH GENERAL ASSEMBLY

LRB097 10876 RPM 51395 b

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.

FISCAL NOTE ACT MAY APPLY

STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

A BILL FOR

AN ACT concerning education.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The School Code is amended by changing Sections 2-3.27, 2-3.28, and 10-17 as follows:

(105 ILCS 5/2-3.27) (from Ch. 122, par. 2-3.27)

Sec. 2-3.27. Budgets and accounting practices-Forms and procedures.

(a) Subject to subsection (b) of this Section, to To formulate and approve forms, procedure and regulations for school district accounts and budgets required by this Act reflecting the gross amount of income and expenses, receipts and disbursements and extending a net surplus or deficit on operating items, to advise and assist the officers of any district in respect to budgets and accounting practices and in the formulation and use of such books, records and accounts or other forms as may be required to comply with the provisions of this Act; to publish and keep current pamphlets or manuals in looseleaf form relating to budgetary and accounting procedure or similar topics; to make all rules and regulations as may be necessary to carry into effect the provisions of this Act relating to budgetary procedure and accounting, such rules and regulations to include but not to be limited to the establishment of a decimal classification of accounts; to confer with various district, county and State officials or take such other action as may be reasonably required to carry out the provisions of this Act relating to budgets and accounting.

(b) The State Board of Education shall develop and maintain a uniform accounting and reporting system for the receipts and expenditures of school districts. The accounting records maintained by each school district must be coordinated with the uniform accounting system. Each school district shall 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. Each school district shall submit such reports and statements as may be required by the State Board. The State Board shall design, revise, and direct the use of accounting records and fiscal procedures and prescribe uniform classifications for receipts and expenditures for all school districts. The accounting system must be in accordance with generally accepted accounting principles and must include both budgetary and proprietary (real) accounts. The State Board shall prescribe the necessary forms to be used by school districts in connection with the uniform accounting system.

The accounting system developed by the State Board must be developed in such manner as to allow school districts to record and report any information required by State or federal law. The accounting system must be developed in such a manner as to show expenditures for each attendance center in a school district.

The accounting system shall provide records showing at all times by funds, accounts, and other pertinent classifications the amounts appropriated, estimated revenues, actual revenues or receipts, the amounts available for expenditure, total expenditures, unliquidated obligations, the actual balances on hand, and the unencumbered balances of allotments or appropriations for each school district.

The accounting system shall allow a person to search and manipulate the data and allow for the comparison of data by school district and by attendance centers within a school district. The accounting system shall be available to the public on the State Board of Education's official website.

(Source: Laws 1961, p. 31.)

(105 ILCS 5/2-3.28) (from Ch. 122, par. 2-3.28)

Sec. 2-3.28. Rules and regulations of budget and accounting systems. Subject to subsection (b) of Section 2-3.27 of this Code, to To prescribe rules and regulations defining what shall constitute a budget and accounting system required under this Act. The rules and regulations shall prescribe the minimum extent of verification, the type of audit, the extent of the audit report and shall require compliance with statutory requirements and standards and such requirements as the State Board of Education deems necessary for an adequate budget and accounting system.

(Source: P.A. 81-1508.)

(105 ILCS 5/10-17) (from Ch. 122, par. 10-17)

Sec. 10-17. Statement of affairs.

(a) In Class I or Class II county school units the school board may use either a cash basis or accrual system of accounting; however, any board so electing to use the accrual system may not change to a cash basis without the permission of the State Board of Education.

Subject to subsection (b) of Section 2-3.27 of this Code, school boards School Boards using either a cash basis or accrual system of accounting shall maintain records showing the assets, liabilities and fund balances in such minimum forms as may be prescribed by the State Board of Education. Such boards shall make available to the public a statement of the affairs of the district prior to December 1 annually by submitting the statement of affairs in such form as may be prescribed by the State Board of Education for posting on the State Board of Education's Internet website, by having copies of the statement of affairs available in the main administrative office of the district, and by publishing in a newspaper of general circulation published in the school district an annual statement of affairs summary containing at a minimum all of the following information:

(1) A summary statement of operations for all funds of the district, as excerpted from the statement of affairs filed with the State Board of Education. The summary statement must include a listing of all moneys received by the district, indicating the total amounts, in the aggregate, each fund of the district received, with a general statement concerning the source of receipts.

(2) Except as provided in subdivision (3) of this subsection (a), a listing of all moneys paid out by the district where the total amount paid during the fiscal year exceeds $2,500 in the aggregate per person, giving the name of each person to whom moneys were paid and the total paid to each person.

(3) A listing of all personnel, by name, with an annual fiscal year gross payment in the categories set forth in subdivisions 1 and 2 of subsection (c) of this Section. In this Section, "newspaper of general circulation" means a newspaper of general circulation published in the school district, or, if no newspaper is published in the school district, a newspaper published in the county where the school district is located or, if no newspaper is published in the county, a newspaper published in the educational service region where the regional superintendent of schools has supervision and control of the school district. The submission to the State Board of Education shall include an assurance that the statement of affairs has been made available in the main administrative office of the school district and that the required notice has been published in accordance with this Section.

After December 15 annually, upon 10 days prior written notice to the school district, the State Board of Education may discontinue the processing of payments to the State Comptroller's office on behalf of any school district that is not in compliance with the requirements imposed by this Section. The State Board of Education shall resume the processing of payments to the State Comptroller's Office on behalf of the school district once the district is in compliance with the requirements imposed by this Section.

The State Board of Education must post, on or before January 15, all statements of affairs timely received from school districts.

(b) When any school district is the administrative district for several school districts operating under a joint agreement as authorized by this Code, no receipts or disbursements accruing, received or paid out by that school district as such an administrative district shall be included in the statement of affairs of the district required by this Section. However, that district shall have prepared and made available to the public, in accordance with subsection (a) of this Section, in the same manner and subject to the same requirements as are provided in this Section for the statement of affairs of that district, a statement showing the cash receipts and disbursements by funds (or the revenue, expenses and financial position, if the accrual system of accounting is used) of the district as such administrative district, in the form prescribed by the State Board of Education. The costs of publishing the notice and summary of this separate statement prepared by such an administrative district shall be apportioned among and paid by the participating districts in the same manner as other costs and expenses accruing to those districts jointly.

School districts on a cash basis shall have prepared and made available to the public, in accordance with subsection (a) of this Section, a statement showing the cash receipts and disbursements by funds in the form prescribed by the State Board of Education.

School districts using the accrual system of accounting shall have prepared and made available to the public, in accordance with subsection (a) of this Section, a statement of revenue and expenses and a statement of financial position in the form prescribed by the State Board of Education.

In Class II county school units such statement shall be prepared and made available to the public, in accordance with subsection (a) of this Section, by the township treasurer of the unit within which such districts are located, except with respect to the school board of any school district that no longer is subject to the jurisdiction and authority of a township treasurer or trustees of schools of a township because the district has withdrawn from the jurisdiction and authority of the township treasurer and trustees of schools of the township or because those offices have been abolished as provided in subsection (b) or (c) of Section 5-1, and as to each such school district the statement required by this Section shall be prepared and made available to the public, in accordance with subsection (a) of this Section, by the school board of such district in the same manner as required for school boards of school districts situated in Class I county school units.

(c) The statement of affairs required pursuant to this Section shall contain such information as may be required by the State Board of Education, including:

1. Annual fiscal year gross payment for certificated personnel to be shown by name, listing each employee in one of the following categories:

(a) Under $25,000

(b) $25,000 to $39,999

(c) $40,000 to $59,999

(d) $60,000 to $89,999

(e) $90,000 and over

2. Annual fiscal year payment for non-certificated personnel to be shown by name, listing each employee in one of the following categories:

(a) Under $25,000

(b) $25,000 to $39,999

(c) $40,000 to $59,999

(d) $60,000 and over

3. In addition to wages and salaries all other moneys in the aggregate paid to recipients of $1,000 or more, giving the name of the person, firm or corporation and the total amount received by each.

4. Approximate size of school district in square miles.

5. Number of school attendance centers.

6. Numbers of employees as follows:

(a) Full-time certificated employees;

(b) Part-time certificated employees;

(c) Full-time non-certificated employees;

(d) Part-time non-certificated employees.

7. Numbers of pupils as follows:

(a) Enrolled by grades;

(b) Total enrolled;

(c) Average daily attendance.

8. Assessed valuation as follows:

(a) Total of the district;

(b) Per pupil in average daily attendance.

9. Tax rate for each district fund.

10. District financial obligation at the close of the fiscal year as follows:

(a) Teachers' orders outstanding;

(b) Anticipation warrants outstanding for each fund.

11. Total bonded debt at the close of the fiscal year.

12. Percent of bonding power obligated currently.

13. Value of capital assets of the district including:

(a) Land;

(b) Buildings;

(c) Equipment.

14. Total amount of investments each fund.

15. Change in net cash position from the previous report period for each district fund.

In addition to the above report, a report of expenditures in the aggregate paid on behalf of recipients of $500 or more, giving the name of the person, firm or corporation and the total amount received by each shall be available in the school district office for public inspection. This listing shall include all wages, salaries and expenditures over $500 expended from any revolving fund maintained by the district. Any resident of the school district may receive a copy of this report, upon request, by paying a reasonable charge to defray the costs of preparing such copy.

This Section does not apply to cities having a population exceeding 500,000.

(Source: P.A. 94-875, eff. 7-1-06.)