Board Report October 2025

PONTIAC TOWNSHIP HIGH SCHOOL DISTRICT NO. 90 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2025

NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — CONTINUED

D. Budget and Budgetary Accounting The budget, which was approved on September 16, 2024 is prepared on the cash basis of accounting, which is the same basis that is used in financial reporting. This allows for comparability between budget and actual amounts. This is an acceptable method as prescribed by the Illinois Revised Statutes. For each fund, total fund disbursements may not legally exceed the budgeted disbursements in excess of ten percent. The budget lapses at the end of each fiscal year. All encumbrances lapse at the end of fiscal year. The District follows these procedures in establishing the budgetary data reflected in the financial statements. 1. The Superintendent submits to the Board of Education a proposed operating budget for the fiscal year commencing on that date. The operating budget includes proposed expenditures and the means of financing them. 2. A public hearing is conducted to obtain taxpayer comments. 3. Prior to October 1, the budget is legally adopted through passage of a resolution. 4. Formal budgetary integration is employed as a management control device during the year. 5. The Board of Education may make transfers between the various items in any fund not exceeding in the aggregate 10% of the total of the fund as set forth in the budget. 6. The Board of Education may amend the budget (in other ways) by the same procedures required of its original adoption. E. Common Bank Account Separate bank accounts are not maintained for all District funds. Certain funds maintain their uninvested cash balances in a common checking account, with accounting records being maintained to show the portion of the common bank accounts balance attributable to each participating fund. Occasionally, certain of the funds participating in the common bank account will incur overdrafts (deficits) in the account. The overdrafts result from expenditures, which have been approved by the School Board. However, the deficits represented unauthorized interfund loans. F. Investments Investments are stated either at cost or amortized cost, which approximates market. The District is allowed to invest in securities as authorized by Sections 2 and 6 of the Public Funds Invested Act (30 ILCS 235/2 and 6); and Section 8-7 of the School Code. Generally, allowable investments consist of; interest bearing deposits in financial institutions; the Illinois Public Treasurers' Investment Pool; note and bonds guaranteed by the United States of America; and subject to certain restrictions, short term corporate obligations and repurchase agreements with financial institutions. Illinois Statutes require that investment earnings be allocated to the appropriate individual fund.

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