Administrative Read Reference

Finances

Fund Accounting and Separate Accounts

All libraries that use special tax levies, or the working cash or maintenance tax levies, must abide by fund accounting principles in order to separately account for their revenues and expenses types. In addition, for library districts, the statute [75 ILCS 16/35-25 (a)] includes language that these “funds shall be kept in separate and interest bearing accounts.” However, for very small funds (e.g. audit, social security, etc.), especially near year end when they are typically low, banks and savings and loans may not permit (without excessive fees and charges) keeping such accounts separate.