LM Apr 2018

Financial Resources... cont’d. be transferred to the O&M fund at any time with a board resolution. Thus there is a possibility that funds cannot be utilized in the bond and interest fund can be transferred to an operating fund maximizing the amount available. 3. TheCapital Project Fund This fund is the repository for two kinds of revenue. First, it remains the repository for funds derived from the county occupational sales tax and funds derived from the sale of construction bonds to renovate or build a school building. Once more, the auditor must be utilized to separate these two sources of revenue. Funds derived from the sales tax may not be transferred to any other fund. Funds derived from a bond sale and in which all relevant encumbrances have been paid may take the remaining funds in the capital projects fund and transfer them to the O&M fund. On occasion, this can be a considerable sum as a residual left from a previous capital project. Funds in the capital

projects fund can be utilized for future capital projects, so it may seem unnecessary to transfer funds to another operating fund like the O&M fund. However, districts should keep in mind that funds in the education, operation and transportation fund have the “unlimited ability to make permanent transfers to each other.” Thus funds once deposited in the O&M fund may be transferred with a board resolution to the education or transportation funds as needed. Hopefully, this information will provide school administrators with additional opportunities to maximize the local resources within the legal framework of the requirements of school finance. As always, contact me at the IASA if you have any additional questions: bphillips@iasaedu.org or 217–753–2213.

LEADING OUR SCHOOLS IN OUR COMMUNITIES

Join us in Springfield February 26–27, 2019 A jointly sponsored event designed for district leadership teams: the superintendent, school board members, business officials and building principals for the ALLIANCE LEADERSHIP SUMMIT

Save the Date!

FEBRUARY 26–27, 2019

SUPERINTENDENTS, ASSEMBLE YOUR DISTRICT LEADERSHIP TEAM AND MARK YOUR CALENDARS!

 Hear from educational experts and political analysts  Discuss educational leadership issues  Engage in the legislative process

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