FISCAL MANAGEMENT MANUAL - Illinois Community College Board

Fiscal Management Manual ~ June 2009 Page 39
1. Payment of Orders and Bills
The local boards of trustees of community college districts in cities of less than 500,000
inhabitants must approve payment of all bills showing to whom and for what purpose
each payment is to be made and to what budgetary item each
payment should be debited. The payment's purpose and budgetary line item can be
shown by Fiscal Management Manual account codes. College staff should ensure that
each item is properly charged to the correct account and that authority exists for such a
transaction. For example, custodial salaries and utilities can be paid from the Operations
and Maintenance Fund only upon resolution of the local board of trustees.
2. Bidding Policy
Section 3-27.1 of the Public Community College Act requires each district to let all
contracts for supplies, materials, or work involving an expenditure in excess of $10,000
to the lowest responsible bidder after due advertisement, excluding the exceptions which
are listed in Section 3-27.1 of the Act. The local board may adopt a more restrictive
bidding policy.
3. College Investments
Section 3-47 of the Public Community College Act and Sections 235/1 through 235/7 of
the Investment of the Public Funds Act allow current operating funds, special funds,
interest and sinking funds, and other funds belonging to or in the custody of a community
college, including restricted and nonrestricted funds, to be invested. Section 235/2.5
specifically requires that the board adopt an investment policy which will address certain
salient investment issues and that policy shall be in writing, and implemented by January
1, 2000. This section summarizes only Section 235/2 (Authorized Investments) of the
Investment of Public Funds Act. The college should refer to the Act for a complete listing
of requirements and restrictions. These college funds may be invested in the types of
securities listed below.
a. Bonds, notes, certificates of indebtedness, treasury bills, and other securities issued
by the United States.
b. Bonds, notes, debentures, or other similar obligations of the United States or its
agencies.
c. Interest-bearing savings accounts, interest-bearing certificates of deposit, or interestbearing
time deposits with a bank, or any other investment constituting direct
obligations of any bank as defined by the Illinois Banking Act.
d. Short-term obligations of U.S. corporations with assets exceeding $500 million; i.e.,
commercial paper. These obligations must be rated within the three highest
classifications established by two or more standard rating services, the obligations
must mature within 180 days, such purchases may not exceed 10 percent of a