507.00 Accounting Standards

Download as PDF

Method of Accounting

The college shall maintain its books of account utilizing a system of fund accounting and accrual accounting procedures. All accounting shall be in accord with generally accepted accounting procedures as defined by the Governmental Accounting Standards Board.

Chart of Accounts

The college's financial books of record shall be maintained utilizing the chart of accounts defined in the Illinois Community College Board's Fiscal Management Manual as it may from time to time be revised.

Establishment of Funds

The college shall establish and maintain separate financial records for each of the following funds:

  1. Education Fund - The Education Fund shall be utilized to pay the general costs of operating the instructional programs of the college including student services and administration.
  2. Operations and Maintenance Fund - The Operations and Maintenance Fund shall be used to pay the expenses of maintaining all buildings and grounds owned, rented, or leased by the college.
  3. Auxiliary Fund - The Auxiliary Fund shall be used to account for those services where a fee is charged for the purpose of recovering the cost of the service. This fund shall include the accounts of the college bookstore, the student activities program, the athletic program and such other similar services as may from time to time be included by action of the Board.
  4. Bond and Interest Fund - The Bond and Interest Fund shall be utilized to pay principal and interest for any bonds issued by the college.
  5. Operations and Maintenance Fund (Restricted) - This fund shall be used to pay for the cost of construction and equipping of college buildings.
  6. Liability Protection and Settlement Fund - This fund shall be used to pay the costs of claims of tort liability, worker's compensation, unemployment, property, and Medicare insurance.
  7. Audit Fund - This fund shall be used to pay expenses associated with the annual audit of the college's financial records.
  8. Restricted Purposes Fund - This fund shall be used to account for monies received by the college which have restrictions regarding their use. Each specific project or grant program shall be accounted for separately using a group of self-balancing accounts within this fund.
  9. Working Cash Fund – This fund shall be used to account for the proceeds of working cash bonds.

Finances