Transcript Illinois Association of School Business Officials Annual

Illinois Association of School
Business Officials Annual
Conference
May 19, 2010
Accounting for Interfund Transfers –
Do You Know the Rules?
Lynda Given
Chapman and Cutler LLP
Andy Mace
Miller, Cooper Co., Ltd.
2815301
Interfund Loans
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School Code Section 10-22.33
From ed to O&M, transportation or life safety
From O&M to ed, transportation or life safety
From transportation to ed, O&M or life safety
Must be repaid within 3 years
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Interfund Transfers
• School Code Section 17-2A
• Authorized by Board resolution among the ed, O&M
and transportation funds
• Public hearing required
– 7-30 days published notice in newspaper of general
circulation
– 48 hour posted notice at principal office of the School
Board
– Set forth date, time, place and subject matter of the
hearing
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Transfers of Interest Income
• Local Government Debt Reform Act Section 9(c)
• By Board authorization to fund most in need of the
interest
• Does not apply to:
– Interest that has been earmarked or restricted by the
School Board for a designated purpose
– Interest on IMRF levy
– Interest on tort immunity levy, tort immunity bonds or
debt service levy to pay tort immunity bonds
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Excess School Building Bond
Proceeds
• School Code Section 10-22.14
• When purposes have been accomplished and
paid for in full
• Transfer to O&M Fund by School Board
resolution
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Excess Life Safety Bond Proceeds
• School Code Section 10-22.14
• When purposes have been accomplished and
paid for in full
• Use for other approved life safety projects
• Transfer to B&I Fund to pay SFPS Bonds
– Secretary within 30 days must direct County Clerk
to abate taxes to pay Bonds
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Special Education
• School Code Section 17-2.2a
• Excess Special Education Building Funds may
be used for other Special Education purposes
(need ROE approval)
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Lease Levy
• School Code Section 17-2.2c
• Transferrable to any fund upon Board
determination that they are no longer needed
for the stated purpose
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Working Cash Fund
• School Code Article 20
• Abolish in full to ed fund at end of fiscal year
• G.I.S. Venture case – February 6, 2009
– Abate to the ed fund
• Then use Section 17-2A for a permanent
transfer to O&M
• Accounting transfer to Capital Projects Fund
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Transfers per New IPAM
• Debt Service Fund
• Capital Projects Fund
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Debt Service Fund
• P&I payments made previously from other
funds s/b made from the Debt Service Fund
• Payments are funded via inter-fund transfers
• Examples:
– Debt Certificates (O&M Fund)
– Capital Leases (Ed Fund)
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Capital Projects Fund
• Significant capital expenditures previously
from other funds s/b made from the Capital
Projects Fund
• Regular/routine capital items may be excluded
• Example – Debt Certificates (O&M)
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