A primer on park district finance

Part II — Focus on the annual statement of receipts and disbursements.

Editor's Note: The following is the second in a series of four articles dealing with park district finances. The third installment will appear in the May/June issue.

By Robert A. Porter

The annual statement of receipts and disbursements is one financial report that appears to be — and is — very simple, but many park districts handle it differently.

The intended purpose of the report is to let taxpayers know how park district funds were spent in the last year, and it is the only financial report which is required to be published in local newspapers. State law gives the treasurer of each district six months after the completion of the fiscal year to finalize and publish the report.

Recent changes

This publication requirement was amended by Public Act 84-640 (effective Sept. 20, 1985). Generally, these changes clarified both the procedures described in, and the interpretation of, the law. Major changes affected the time frame for the publication and filing requirement, payrolls and salaries, and vendor disbursements.

The annual statement of receipts and disbursements shall contain:

• all monies that are received and the sources from which they are received.

• all monies paid out where the total amount paid during the fiscal year exceeds $1,000. The name of each individual to whom monies are paid, the amount paid and the name of the account paid must be included. This does not include payroll.

• all monies spent for personal services, giving the name of each individual receiving payment, the account paid and the total amount paid.

• a summary statement of operations for all funds and account groups, as excerpted from the annual financial report as filed with the appropriate State agency.

The statement shall be subscribed and sworn to by the treasurer, and filed with the county clerk.

Statement's format

The format of the statement varies from agency to agency, and the six-month publication and filing requirement allows for audit competition and adjustments. The publication is paid for from the general fund.

A district may elect not to publish the statement and instead publish the entire audit in its place. This process, however, would be more expensive.

For the specific text of this legal requirement, consult your attorney.

ABOUT THE AUTHOR: Robert A. Porter is the director of the Lemont Township Park District.

Illinois Parks and Recreation 13 March/April 1987