ADDING IT ALL UP- UNDERSTANDING SCHOOL FINANCES
When looking at the school’s finances it can sometimes be difficult to understand what funds are used by the school district and how each of the funds can be used.
There are two “buckets” of money: Operating Funds and Restricted Funds. The operating funds are just that, the funds used for our day-to- day functions like instruction, transporting students to and from school. Restricted funds are used for a specific purpose. Illinois School Code prevents the transfer of money between Operating and Restricted Funds. Below is a chart that illustrates the two funds.
OPERATING FUNDS VS RESTRICTED FUNDS
Operating Fund Education Fund (10)- Instruction and instruction related items (largest fund) | Restricted Fund Debt Services Fund(30)- Making payments on debt. |
Operating Fund Operations and Maintenance Fund (20)- For the upkeep of buildings and grounds. | Restricted Fund IMRF Fund (50)- For the District’s share of required IMRF payments. |
Operating Fund Transportation Fund (40)- For transporting students. | Restricted Fund Capital Projects Fund (60)- For developing and improving capital assets. |
Operating Fund Working Cash (70) - For providing a cash cushion (like a savings account) | Restricted Fund Tort Fund (80)- For liability insurance and risk management |
Restricted Fund Life Safety Fund- For eligible code-required building projects. |