Wilmette Public Schools District 39 is dedicated to maintaining a
reasonable fund balance sufficient to mitigate current and future
financial risks and to ensure stable tax rates. This policy establishes
goals and provides guidance concerning the desired level of year-end
fund balance to be maintained by the District as well as categories of
reported fund balance.
Fund - For purposes of this policy a fund is defined
as a fiscal and accounting entity with a self-balancing set of accounts
that comprise its assets, liabilities, fund balance, revenues, and
expenditures. The District maintains separate funds as required by the
Illinois State Board of Education (ISBE). The record of fund activity is
maintained in the District's financial accounting software and is
reported annually in the District's annual financial report (AFR).
Governmental fund types used by the District include the general
fund, special revenue funds, debt service funds and capital projects
funds. Student activity funds maintained by the District are fiduciary
in nature and are not governed by this policy.
General Fund - The general fund should be used to
account for and report all financial resources not accounted for and
reported in another fund.
Special Revenue Funds - Special revenue funds are
used to account for and report the proceeds of specific revenue sources
that are restricted or committed to expenditure for specified purposes
other than debt service or capital projects. The term proceeds of specific revenue sources
establish that one or more specific restricted or committed revenues
should be the foundation for a special revenue fund. If the District no
longer expects that a substantial portion of the inflows will derive
from restricted or committed revenue sources, the District should
discontinue reporting a special revenue fund, and instead report the
fund's remaining resources in the General Fund.
Debt Service Funds - Debt service funds are used to
account for and report financial resources that are restricted,
committed, or assigned to expenditure for principal and interest. Debt
service funds should be used to report resources if legally mandated.
Capital Projects Funds - Capital projects funds are
used to account for and report financial resources that are restricted,
committed, or assigned to expenditure for capital outlays, including the
acquisition or construction of capital facilities and other capital
|Operations & Maintenance
|Special Revenue or General
|Municipal Retirement/Social Security
|Special Revenue (or General, depending on policy/tax levy)
|Fire Prevention & Safety
Fund Balance - Fund balance is a measure of
available financial resources. Fund balance is the difference between a
fund's assets and liabilities.
Statement No. 54 of the Governmental Accounting Standards Board
(GASB) Fund Balance Reporting and Governmental Fund Type Definitions
establishes two categories of fund balance for use by governmental
- The Nonspendable Fund Balance classification
includes amounts that cannot be spent because they are either (a) not in
spendable form, such as inventories and prepaid amounts or (b) legally
or contractually required to be maintained intact.
- The Spendable Fund Balancecategory includes all
resources not included in the Nonspendable Fund Balance category. The
Spendable Fund Balance category has four sub-categories as follows:
- Restricted Fund Balance reflects resources that are
subject to enforceable legal restrictions by outside parties such as
creditors (through debt covenants), grantors, contributors, or other
governments. Such restrictions include property taxes other than those
reported in the General Fund, grants other than general state aid,
proceeds from debt issuances, and other restricted sources.
- Committed Fund Balance is government imposed
constraints on the use of resourcs by formal action of the District's
Board of Education through Board Resolution. The constraint remains
binding unless removed by formal action of the Board of Education. The
formal action should describe the revenue source considered to be
committed, and the specific purpose of its use.
- Assigned Fund Balance reflects the District's
intended use of resources for a specific purpose and assigned in
accordance with the Board of Education or the Superintendent. Fund
balance may be assigned after the end of the fiscal year. Non-negative
residual unrestricted or uncommitted fund balance in funds other than
the General Fund will be considered to be assigned.
- Unsassigned Fund Balance is the residual balance reported in the General Fund or a negative fund balance in a fund other than the General Fund.
The categories and subcategories set forth by GASB are used for
District general purpose external financial reporting in accordance with
GAAP accounting principles. The District may use other or additional
designations for internal accounting and special purpose reporting.
Authority for use and transfer of District funds arises under State law;
the GASB designations are used for descriptive reporting purposes only
and are not intended to express or imply limitation on that authority.
Individual District funds maintained as required by state law and ISBE
regulations may contain monies described under more than one GASB
category or sub-category.
Days Cash on Hand
Wilmette School District 39 will strive to maintain 150 days Cash on
Hand as defined in the Financial Profile Summary of the Illinois State
Board of Education Annual Financial Report.
Resource Use Policy
When an expenditure is incurred for purposes for which both
restricted and unrestricted fund balance is available the District
considers restricted amounts to have been spent first. Also, when an
expenditure is incurred for purposes for which amounts in any of the
unrestricted fund balance classifications could be used the District
considers committed, assigned, and then unassigned amounts, in that
order, to have been spent.
Fund balance deficits in any fund will be budgeted to be reduced and
eliminated in a systematic manner through the transfer of resources from
other funds as allowable, the distribution of property taxes as
permitted by the Property Tax Extension Limitation Law or through the
allocation of unrestricted General State Aid.
Adopted: December 12, 2011