OLD LAWN PARK Documentation

OAK LAWN PARK DISTRICT
INTERNAL CONTROL DOCUMENT
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Financial Statement and Accounting Process

Descriptions and Internal Control Documentation
FINANCIAL STATEMENT AND ACCOUNTING PROCESS DESCRIPTIONS AND INTERNAL CONTROL

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Introduction ..........................................................................................................................................................................4
Internal Control Evaluation ................................................................................................................................................4
COSO Integrated Framework.............................................................................................................................................4
Control Types .....................................................................................................................................................................6
Organization of the Park District Finance Manual...........................................................................................................6
Accounting Process Description.........................................................................................................................................6
Financial Statement Description .........................................................................................................................................6
Combined Balance Sheet......................................................................................................................................................8
Balance Sheet Detail .............................................................................................................................................................8
Statement of Revenues, Expenditures and Changes in Fund Balance...........................................................................11
All Governmental Funds ..................................................................................................................................................11
Statement of Revenues, Expenses and Changes in Retained Earnings..........................................................................12
Proprietary (Enterprise) Funds .........................................................................................................................................12
Statement of Revenues and Expenditures / Expenses Detail ..........................................................................................13
Cash Process Description ...................................................................................................................................................14
Administration Office.........................................................................................................................................................14
Collateral Insurance ...........................................................................................................................................................14
Cash Control Procedures ...................................................................................................................................................14
Bank Reconciliations........................................................................................................................................................15
Petty Cash .........................................................................................................................................................................16
Investment Process Description.........................................................................................................................................16
Administration Office Procedures ....................................................................................................................................17
Debt Issuance Process Description....................................................................................................................................17
Debt Issuance Procedures ..................................................................................................................................................17
Revenue Process Description .............................................................................................................................................18
Description of the Revenue Process ..................................................................................................................................18
Administration Office.........................................................................................................................................................18
Credit Card Receipts..........................................................................................................................................................18
Administration Office - Property and Replacement Taxes ............................................................................................18
Fees and Admissions...........................................................................................................................................................19
Administration ..................................................................................................................................................................19
Oakview............................................................................................................................................................................19
Pavilion.............................................................................................................................................................................20
Pools .................................................................................................................................................................................21
Golf...................................................................................................................................................................................21
Ice Arena...........................................................................................................................................................................21
Racquet Club ....................................................................................................................................................................22
Rentals .................................................................................................................................................................................23
Oak View..........................................................................................................................................................................23
Pavilion.............................................................................................................................................................................24
Golf...................................................................................................................................................................................24
Ice Arena...........................................................................................................................................................................24

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Other ....................................................................................................................................................................................24
Administration ..................................................................................................................................................................24
Payroll Process Description ...............................................................................................................................................25
Description of the Payroll Process....................................................................................................................................25
Payroll Check Issuance Process........................................................................................................................................25
Non-Salary Process Description ........................................................................................................................................26
Description of the Non-Salary Process.............................................................................................................................27
Purchase Orders................................................................................................................................................................27
Check Requests.................................................................................................................................................................27
Vouchers ..............................................................................................................................................................................28
Procurement Card Program ..............................................................................................................................................28
General Information .........................................................................................................................................................28
Acceptable MasterCard Purchase Card Purchases ...........................................................................................................29
Unacceptable MasterCard Purchase Card Purchases........................................................................................................29
Program Restrictions ........................................................................................................................................................29
Reconciliation and Payment .............................................................................................................................................30
Misuse of the MasterCard Purchase Card includes: .........................................................................................................30
When The Records Do Not Agree with The Monthly Statement.....................................................................................30
Lost or Stolen Cards .........................................................................................................................................................31
Sales Tax..............................................................................................................................................................................31
Check Disbursement Procedures ......................................................................................................................................31
Bid Process ..........................................................................................................................................................................32
Goods or Services greater than $10,000 ...........................................................................................................................32
Responsible Bidder’s Ordinance ......................................................................................................................................32
Fixed Asset / Capital Outlay Process Description............................................................................................................33
Funding Process..................................................................................................................................................................34
Long-term .........................................................................................................................................................................34
Capitalization Policies and Procedures ............................................................................................................................34
Equipment Classifications .................................................................................................................................................36
Depreciation Expense Policies ...........................................................................................................................................36
Physical Inventory of Fixed Asset Procedures .................................................................................................................36
Disposal of Buildings and Equipment...............................................................................................................................37
Donated Equipment............................................................................................................................................................37
Forms ...................................................................................................................................................................................38

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Introduction
This Manual documents the District’s internal controls, processes and procedures.
Internal Control Evaluation

Management of the Park District is responsible for establishing and maintaining an internal control structure
designed to ensure that the assets of the District are protected from loss, theft or misuse and to ensure that
adequate accounting data are compiled to allow for the preparation of financial statements in conformity with
generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not
absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost
of control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires
estimates and judgments by management.
COSO Integrated Framework

Management is the key to an effective internal control structure. No system of internal controls, no matter how
well designed, can function properly without the knowledge and support of management at all levels. This fact
was made clear in the report “Internal Control-Integrated Framework” issued by the Committee of Sponsoring
Organizations of the Treadway Commission; also know as the COSO Report. (COSO is a voluntary private-sector
organization dedicated to improving the quality of financial reporting through business ethics, effective internal
controls and corporate governance. The sponsoring organizations are the American Institute of Certified Public
Accountants, the Institute of Internal Auditors, Financial Executives International, Institute of Management
Accountants and the American Accounting Association.) This report established the framework which
organizations look to for structuring and evaluating their internal controls. The conceptual framework for internal
controls outlined in the COSO Report is the basis for the GFOA’s publication “Evaluating Internal Controls – A
Local Government Manager’s Guide”.
The COSO Internal Controls – Integrated Framework defines internal control as a “process, effected by an
entity’s board of directors, management and other personnel, designed to provide reasonable assurance regarding
the achievement of objectives in the following categories:
• Reliability of financial reporting

• Effectiveness and efficiency of operations
• Compliance with applicable laws and regulations”
The Integrated Framework uses three dimensions that provide management with criteria by which to evaluate
internal controls.
The first dimension is objectives. Internal controls are designed to provide reasonable assurance that objectives
are achieved in the following categories: effectiveness and efficiency of operations (including safeguarding of
assets), reliability of financial reporting, and compliance with applicable laws and regulations.
The second dimension required by COSO is an entity-level focus and an activity-level focus. Internal controls
must be evaluated at two levels: at the entity level, and at the activity or process level.
The third dimension includes the five components of internal controls:

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• Control environment - The control environment sets the tone of an organization, influencing the control
consciousness of its people. It is the foundation for all other components of internal control, providing
discipline and structure. Control environment factors include: the integrity, ethical values and competence
of the entity’s people; management’s philosophy and operating style; the way management assigns
authority and responsibility, and organizes and develops its people; and the attention and direction
provided by the board of directors.
• Risk assessment - Every entity faces a variety of risks from external and internal sources that must be
assessed. A precondition of risk assessment is establishment of objectives, linked at different levels and
internally consistent. Risk assessment is the identification and analysis of relevant risks to achievement of
the objectives, forming a basis for determining how the risks should be managed. Because economic,
industry, regulatory and operating conditions will continue to change, mechanisms are needed to identify
and deal with the special risks associated with change.
• Control activities - Control activities are the policies and procedures that help ensure management
directives are carried out. They help ensure that necessary actions are taken to address risks to
achievement of the entity’s objectives. Control activities occur throughout the organization, at all levels
and in all functions. They include a range of activities as diverse as approvals, authorizations,
verifications, reconciliations, reviews of operating performance, security of assets and segregation of
duties.
• Information/communication - Pertinent information must be identified, captured, and communicated in a
form and timeframe that enables people to carry out their responsibilities. Information systems produce
reports containing operational, financial and compliance-related information that make it possible to run
and control the business. They deal not only with internally generated data, but also information about
external events, activities and conditions necessary to informed decision-making and external reporting.
Effective communication also must occur in a broader sense, flowing down, across and up the
organization. All personnel must receive a clear message from top management that control
responsibilities must be taken seriously. They must understand their own role in the internal control
system, as well as how individual activities relate to the work of others. They must have a means of
communicating significant information upstream. There also needs to be effective communication with
external parties, such as customers, suppliers, regulators and shareholders.
• Monitoring - Internal control systems need to be monitored, a process that assesses the quality of the
system’s performance over time. This is accomplished through ongoing monitoring activities, separate
evaluations or a combination of the two. Ongoing monitoring occurs in the course of operations. It
includes regular management and supervisory activities, and other actions personnel take in performing
their duties. The scope and frequency of separate evaluations will depend primarily on an assessment of
risks and the effectiveness of ongoing monitoring procedures. Internal control deficiencies should be
reported upstream, with serious matters reported to top management and the board.
These three dimensions represent the Integrated Framework. The framework works in the following manner. For
any given objective, such as reliability of financial reporting, management must evaluate the five components of
internal control at both the entity level and at the activity (or process) level.
According to COSO, determining whether a particular internal control system is “effective” is a subjective
judgment resulting from an assessment of whether the five components are present and functioning effectively.
Their effective functioning provides reasonable assurance that one or more of the primary objectives is achieved.
These components are therefore also criteria for effective internal control.

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Control Types
In addition to determining that the internal controls identified fall within one of the five COSO internal control
components, each identified control is also evaluated to determine what type of control it is, and if that type of
control is appropriate for the related activity or process being evaluated. The internal controls have been classified
into one the following nine types:
• Authorization controls
• Management review
• Reconciliation
• Segregation of duties
(Note: The underlined number is used in the process descriptions to identify controls.)
Organization of the Park District Finance Manual
The Park District Office Finance Manual is organized into three main sections. The first section displays the 2003
annual financial statements. Each line item in the financial statements is a result of an accounting process or
specific procedures. The financial statement line is referenced either to a process description, or to a detailed
schedule. If referenced to a detailed schedule, the amounts in the schedule are referenced to a process description.
The second section consists of our process descriptions and the third section includes forms. This manual is a
work in process. As discussed in the Internal Control Component – Monitoring above, the effectiveness of
controls require ongoing monitoring. Annually the financial statement section of this report should be updated
and the process description reviewed. As processes change or are updated, or new descriptions are developed,
this manual should be updated descriptions are developed, this manual should be updated.
Accounting Process Description
The process description describes how the process is performed, the staff performing each task and the manager or
supervisor who reviews or reconciles information. The process descriptions include a reference to the control type and
internal control component as listed above (i.e. “A – Control Activities” means “Authorization controls with the control
activities component”)
Financial Statement Description
The Oak Lawn Park District 2006 annual financial report is used as a reference for the documenting of our
processes. Each line item in the financial statements is a result of an accounting process or specific procedures.
The financial statement line is referenced either to a process description, or to a detailed schedule. If referenced to
a detailed schedule, the amounts in the schedule are referenced to a process description.
By cross-referencing financial statement line items to its process description, an evaluation of internal controls
can be made for all major financial statement lines. The financial statements included are the balance sheet,

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statement of revenues, expenditures and changes in fund balance – all governmental funds and the statement of
revenues, expenses and changes in retained earnings – proprietary (enterprise) funds.

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Combined Balance Sheet
Assets 2006 Reference

Current Assets
Cash And Cash Equivalents $ 5,860,016 Page 11-13
Cash In Escrow $ 1,361,026 Page 11
Property Tax Receivable $ 2,319,007 Page 15
Accounts Receivable $ 107,037
Interfund Receivable $ 136,841
Inventory $ 62,364 Page 6
Prepaid Expenses $ 31,818
Deposits $ 2,235
Total Current Assets $ 9,880,344
Non-Current Assets
Capital Assets
Capital Assets Not Being Depreciated $ 22,937,272 Page 6
Other Capital Assets, Net Of Depreciation $ 10,821,021 Page 6
Total Non-Current Assets $ 33,758,293
Total Assets $ 43,638,637
Liabilities
Current Liabilities
Accounts Payable $ 932,665
Bonds Payable $ 2,353,900 Page 6-7
Notes Payable $ 463,843 Page 6-7
Accrued Payroll $ 150,518
Unearned Revenue $ 240,383
Interfund Payable $ 136,841
Accrued Vacation $ 106,084
Total Current Liabilities $ 4,384,234
Non-Current Liabilities
Bonds Payable $ 3,115,000 Page 6-7
Notes Payable $ 4,920,000 Page 6-7
Total Non-Current Liabilities $ 8,035,000
Total Liabilities $ 12,419,234
Net Assets
Invested In Capital Assets, Net Of Related Debt $ 22,905,550 Derived
Restricted Net Assets $ 1,361,026 Derived
Unrestricted Net Assets $ 6,952,827 Derived
Total Net Assets $ 31,219,403
Balance Sheet Detail 2006 Reference

Inventories

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Golf Course And Driving Range $ 59,281
Ice Rink $ 3,083
Racquet Club $ -
Total Inventories $ 62,364
Fixed Assets
Governmental Activities
Assets Not Being Depreciated
Land $ 9,857,734 Page 28
Construction In Progress $ 3,012,540
Sub-Total $ 12,870,274
Assets Subject To Depreciation
Building & Improvements $ 9,396,186 Page 28-29
Equipment $ 2,487,053 Page 29
Sub-Total $ 11,883,239
Less Accumulated Depreciation
Building & Improvements $ (4,861,872) Page 30
Equipment $ (1,843,552) Page 30
Sub-Total $ (6,705,424)
Total $ 18,048,089
Business Activities
Assets Not Being Depreciated
Land & Land Improvements $ 8,909,656 Page 29
Construction In Progress $ 1,157,342
Sub-Total $ 10,066,998
Assets Subject To Depreciation
Building & Improvements $ 8,848,233 Page 28-29
Page 29-30
Machinery & Equipment $ 725,834
Sub-Total $ 9,574,067
Less Accumulated Depreciation
Building & Improvements $ (3,373,583) Page 30
Equipment $ (557,278) Page 30
Sub-Total $ (3,930,861)
Total $ 15,710,204
Total Net Assets $ 33,758,293
General Obligation Bonds
General Obligation Bonds - Alternate Revenue Source, Due $ 2,480,000 Page 14
December 2011
General Obligation Bonds - Installment Purchase Agreement,
Due June 1, 2009 $ 1,000,000 Page 14
General Obligation Bonds - Alternate Revenue Source, Due
December 15, 2006 $ 1,710,000 Page 14
Total $ 5,190,000

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Notes Payable
First Midwest Bank, due December 1, 2006 $ 292,743 Page 14
JP Morgan Trust Co., due April 4, 2015 $ 5,370,000 Page 14
Total $ 5,662,743
Total Bonds and Notes Payable $ 10,852,743

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Statement of Revenues, Expenditures and Changes in Fund Balance
All Governmental Funds
2006 Reference
REVENUES
Property Taxes $ 4,522,103 Page 15
Replacement Taxes $ 145,899 Page 15
Program and Operating Fees $ 1,988,979 Page 15
Property rental $ 169,891 Page 20-21
Interest $ 191,954
Miscellaneous $ 150,062
TOTAL REVENUES $ 7,168,888
EXPENDITURES
Current
Recreation
Administration $ 2,031,073 Page 10
Program $ 3,007,461 Page 10
Debt Service
Principal $ 2,822,363 Page 10
Interest $ 385,504 Page 10
Legal Fees $ 4,390 Page 10
Capital Outlay $ 4,110,363 Page 10
TOTAL EXPENDITURES $ 12,361,154
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES $ (5,192,266)
OTHER FINANCING SOURCES (USES)
Issuance of Debt $ 7,080,000 Page 14
Transfers In $ 302,569
Transfers Out $ (1,226,366)
TOTAL OTHER FINANCING
SOURCES (USES) $ 6,156,203
NET CHANGE IN FUND BALANCES $ 963,937
FUND BALANCE
BEGINNING OF YEAR $ 5,212,509
END OF YEAR $ 6,176,446

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Statement of Revenues, Expenses and Changes in Retained Earnings
Proprietary (Enterprise) Funds
2006 Reference
OPERATING REVENUES
Charges for Services
Program and Operating Fees $ 1,579,637 Page 15
Rentals $ 634,136 Page 20-21
Other $ 458,029 Page 21
TOTAL OPERATING REVENUES $ 2,671,802
DIRECT OPERATING REVENUES

Administration and Operations $ 2,496,208 Page 10
Depreciation $ 276,429 Page 10
TOTAL DIRECT OPERATING REVENUES $ 2,772,637
OPERATING
LOSS $ (100,835)
NON-OPERATING INCOME (EXPENSES)

Interest Income $ 4,207
Parking Lot Rental Income $ 40,555 Page 20
TOTAL NON-OPERATING INCOME $ 44,762
LOSS BEFORE TRANSFERS $ (56,073)
TRANSFERS $ 923,797
TOTAL TRANSFERS $ 923,797
CHANGE IN NET ASSETS $ 867,724
NET ASSETS
BEGINNING OF YEAR $ 14,698,074
PRIOR YEAR ADJUSTMENT $ 45,264
BEGINNING OF YEAR, RESTATED $ 14,743,338
END OF YEAR $ 15,611,062

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Statement of Revenues and Expenditures / Expenses Detail
General 2006
Government Recreation Enterprise Total Reference
Salaries, wages, benefits $ 1,380,496 $ 1,619,237 $ 1,238,421 $ 4,238,154 Page 21-22
Contractual $ 179,663 $ 430,560 $ 127,191 $ 737,414 Page 22
Materials & Supplies $ 143,162 $ 351,716 $ 486,727 $ 981,605 Page 22
Insurance $ 314,902 $ 103,685 $ 39,629 $ 458,216 Page 22
Utilities $ 59,509 $ 259,740 $ 432,685 $ 751,934 Page 22
Other $ (46,659) $ 242,523 $ 113,643 $ 309,507 Page 22
Capital Outlay $ - $ - $ 57,912 $ 57,912 Page 22
Sub-total $ 2,031,073 $ 3,007,461 $ 2,496,208 $ 7,534,742
Debt Service
Principal $ 2,822,363 $ - $ - $ 2,822,363
Interest and Fiscal Charges $ 389,894 $ - $ - $ 389,894
Capital Outlay $ 4,015,331 $ 95,032 $ - $ 4,110,363 Page 22
Depreciation $ - $ - $ 276,429 $ 276,429
Total $ 9,258,661 $ 3,102,493 $ 2,772,637 $ 15,133,791

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Cash Process Description
Programs are offered by the Park District to meet the recreational and cultural needs of the citizen of Oak Lawn
community and property tax receipts are the primary sources of funds for the Park District. Property taxes are
levied against the real estate property within the Park District’s boundaries. Registration for programs is offered
to residents of Oak Lawn as well as non-residents. To register, a registration form is completed and is either
brought to, mailed, or faxed to a facility. Payment by cash, check or credit card, must accompany the registration
form.
Financial statement accounts that are included in the cash process description include:
• Cash and cash equivalents

• Restricted cash
Administration Office
The District maintains approximately 11 bank accounts, each having a specific purpose (disbursements, investing, checking,
depository, etc). The District utilizes a cash management system that “sweeps” daily balances to / from the operating
account from the various accounts at Founder’s Bank. Accordingly, the District’s bank accounts are zero-balance, non-
interest bearing accounts. The main check signer for the District is the Director of the District. The President of the Board of
Commissioners is also an authorized signer.
Collateral Insurance
Deposits with financial institutions are classified into three categories.
• Deposits covered by federal depository insurance, or by collateral held by the Park District or its agent in
the Park District’s name.
• Deposits covered by collateral held by pledging financial institution, or its trust department, or its agent in
the Park District’s name.
• Deposits covered by collateral held by the pledging financial institution, or its trust department, or its
agent but not in the Park District’s name, and deposits that are uninsured and uncollateralized.
The District maintains funds in banks with FDIC insurance coverage. All funds in excess of the FDIC insurance
coverage limitation of $100,000 are collateralized in our name by the financial institution.
Cash Control Procedures
Uniform cash control procedures were adopted by the District in order to minimize the risk that money is not
placed in deposit envelopes, that the deposit envelope is not placed in the drop safe daily, and that the deposit is
not deposited in the bank. Facility managers and department heads are informed of these procedures and
implement them to the extent possible at their facility. These procedures are classified as: cash drawer, deposit,
and deposit pick-up procedures.
Cash Drawer

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Start shift / day
Cashier and facility manager/supervisor verify count in cash drawer.
All transactions are recorded through the cash register and a receipt is generated for each transaction.
All checks received should be immediately and restrictively endorsed.
End shift / day

Cashier and facility manager/supervisor verify count in cash drawer and complete cash drawer log.
Funds are to be matched to register tape.
Make the deposit including a completed deposit slip.
Overages/shortages are noted.
Complete deposit log.
Cashier and facility manager/supervisor initial deposit envelope across the seal.
Deposit envelope placed in drop safe.
Deposit
Each facility identifies people responsible for handling cash and access to safe key.
All registrations/receipts must be entered into computer upon receipt. If no computer is available for input,
transfer the receipt information onto a spreadsheet. (Deposit detail would be entered into the computer when it
becomes available.) Record the deposit in the deposit log and place in drop safe.
Each deposit is entered into the deposit log. If there is no deposit for a given day, it would also be noted on the
deposit (and courier) log(s).
Registrations being sent to Oak View / Administration should be entered onto the registration log.
The person at Oak View / Administration responsible for entering registrations will verify receiving the
registrations by initialing the registration log sheet.
The registration log sheet would be returned to the originating facility as proof of receipt.
Deposit Pick-up
The first stop for the courier is the Administration Building to pick-up drop safe keys (the second key required to
open safe) for each facility. The courier and administration staff person complete the key log and initial / sign as
evidence that the keys were signed out. The courier and administration staff would also initial / sign the key log
when the keys are returned that same day.
The courier and the facility manager / supervisor (or other designated staff) are required to jointly retrieve the
deposits from the drop safe.
The facility manager / supervisor removes the deposits from the drop safe and the courier enters the following
information into the courier log:
Facility name and bag number
Envelope number (# 1, 2, 3, etc., representing each envelope entered in the courier log.
Amount of deposit in each envelope.
Initials of facility manager / supervisor and courier indicating receipt of envelopes.
The courier places deposit envelopes into the deposit bag and locks it.
The courier takes all deposit bags to the bank (Founders). When the courier receives the bank deposit slips, he/she
places a check mark next to the appropriate deposit information on the courier log. The bank deposit slips are
delivered to Administration.
Bank deposit slips are matched to deposit detail sheets by the front desk staff at Administration.
Bank Reconciliations
Bank reconciliations are prepared by the Controller. Reconciliations are performed on a monthly basis for all
accounts. The bank statements usually arrive between the 5th and 10th of the following month, and reconciliations
are usually completed by the end of that month. (R-Control Activities)
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Accounts have outstanding items each month. They are mainly outstanding checks, deposits in transit, and
occasionally differences in deposits between the bank and the District. The accounts with outstanding checks are
the payroll disbursement account (#5069402 – Founder’s Bank) and the vendor check account (#5069403 –
Founder’s Bank). The bank sends a list of paid checks to the District every month. Once received, the paid checks
are entered into the computer system by the front desk staff in Administration. The in-house computer system
would then generate the cumulative list of outstanding checks. Since some checks are never cashed, this account
is ‘cleaned’ up by canceling the outstanding check from the outstanding list. Those checks are transferred to a
liability account for record-keeping and properly remitted to the state after seven years.
Petty Cash
The Administration Office is responsible for approving the establishment of all petty cash funds. (A-Control
Activities) Accountability in each facility is assigned to the facility manager who is responsible for safeguarding
the fund. The maximum amount in the fund is limited to $800.00. Petty cash funds are maintained on an ‘imprest’
basis, meaning that the amount of the fund should remain constant. Currency + coin + petty cash receipts =
authorized maximum amount for the fund. Original receipts must accompany all reimbursement requests. (R-
Control Activities)
Petty cash may not be used to cash personal or payroll checks.
The Administration Office conducts surprise petty cash audits semi-annually and verifies each fund when the
fund is replenished. (M-Control Activities)
Investment Process Description
State Statutes authorize the Park District to invest in obligations of the U.S. Treasury; federally insured bank
accounts, credit union accounts or money markets; high-rated short-term corporate obligations; repurchase
agreements; and the Illinois Fund administered by the State of Illinois Treasurer.
The Park District’s bank accounts are zero-balance, non-interest bearing accounts. On a daily basis, the bank
“sweeps” daily balances from the various operating bank accounts into the District’s operating account. Any
funds in excess of our compensating balance amount (currently at $380,000) are swept into an interest bearing
repurchase agreement account. The District Controller periodically receives interest rate quotes via the telephone
for Certificates of Deposits at financial institutions approved to do business with the District. (M-Control
Activities) Depending on the current interest rate market, funds may be invested in certificates of deposit or
repurchase agreement (money market) account.
Replacement tax deposits made by the Illinois Department of Revenue to the District are deposited directly into
the Illinois Fund. Depending on interest rates, the funds may remain in this fund or transferred to our operating
account at Founders Bank.
Financial statement accounts that are included in the investment process description are cash and cash
equivalents.

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Administration Office Procedures
Investment accounting procedures in the Administration Office are focused on maximizing the return on our
investments in compliance with the State Statutes. Certificate of Deposits, the Repurchase Agreement account at
Founder’s Bank, and the Illinois Fund are the primary investment vehicles used by the District. Depositing funds
in one of these vehicles involve the following procedures:
(1) The Controller or Superintendent of Finance and Personnel would review or obtain current interest
rate quotes from local financial institutions and or the Illinois Fund.
(2) The Controller or Superintendent of Finance and Personnel, based on an assessment of our cash
needs and the prevailing interest rates, would wire transfer funds to / from the Repurchase
Agreement, or other investment account to the investment vehicle that offers the best interest rate.
Debt Issuance Process Description
The issuance of debt by the District is governed by the State of Illinois. The use of general obligation debt by park
districts is principally governed by two Illinois State Statutes:
1. Outstanding general obligation bonds may not exceed .575% of the assessed valuation of a district.
2. Total general obligation indebtedness may not exceed 2.875% of the assessed valuation of a district unless
an increase is approved by referendum.
In addition to the State Statutes, the Property Tax Extension Limitation Act (PTELA) or “Tax Caps” limits the
annual debt service tax levy which is used to repay obligations of the district.
Financial statement accounts that are included in the debt issuance process description include:
• General obligation bonds

• Notes payable
Debt Issuance Procedures
The Oak Lawn Park District typically issues general obligation bonds each year to fund capital improvements and
to provide for the debt service on existing obligations. Each fall an assessment is made by the Superintendent of
Finance and Personnel and the Park District Treasurer as to the funding needs of the District. The Treasurer
makes an assessment of the interest rate markets in order to determine the annual general obligation bond amount.
The Treasurer would recommend the amount to the Board. He would also notify the Park District Attorney of this
amount in order for him to prepare the necessary bid documents that are sent to financial institutions. Bid
documents are opened at the December board meeting at which time the Board would formally approve the
lowest interest rate bid. (M-Control Activities)

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Revenue Process Description
Programs offered by the Park District are continually evaluated in order to best meet the recreational and cultural
needs of the citizen of Oak Lawn community. New programs are added while others are cancelled depending on
enrollment and demand. Brochures are issued four times throughout the year listing all programs offered through
the Park District. The registration process occurs several weeks before the programs start. Registration for
programs is first open to residents of Oak Lawn and opens to non-residents approximately two weeks later.
Registrations are accepted through the starting date of the program or up until the program is filled or cancelled,
or until the registration deadline. To register, a registration form must be completed and depending on the
program, may either be brought, mailed, or faxed to a facility. Unless otherwise arranged, payment by cash, check
or credit card, must accompany the registration form.
Financial statement accounts that are included in the revenue process description include:
• Taxes
• Program and operating fees
Description of the Revenue Process

Administration Office
The District maintains 7 bank accounts that are used as depository accounts for Administration, Recreation, Pavilion, Ice
Rink, Racquet Club, Swimming Pools, and the Golf Course. The respective facility deposits funds into their account to
facilitate the accounting of their receipts. The funds are then swept out daily to the Districts operating account.
Credit Card Receipts
The District accepts credit card payments from patron for registration fees. Amounts received via credit cards are
deposited directly into the each facilities bank account as discussed above.
Administration Office - Property and Replacement Taxes
Property Taxes - The Park District files its levy for property taxes with the County each December. Property tax
receipts are received primarily in two installments, in March and September or beyond, in the year following our
levy (i.e. the taxes levied for 2003 are received in 2004). The Cook County Treasurer’s Office wire transfers
property tax payments directly into the “Administration Account” (account # 5069410) at Founders Bank. The
Cook County Treasurer’s Office notifies the Park District of all tax payments via an email sent to the Controller.
Upon notification, the Controller would record the tax payment in the accounting records of the district. (M-
Information/Communication)
Replacement Taxes - Annually the Park District is notified by the Illinois Department of Revenue of the
estimated amount of Personal Property Replacement Taxes we will receive based on the State fiscal year which
begins on July 1 and ends on June 30. Payments are made in January, March, April, May, July, August, October,
and December each year. The Illinois Office of the Comptroller electronically transfers the Park Districts
allocation to our Illinois Fund account managed by the State of Illinois Treasurer. The State Comptroller notifies
the Park District via fax when funds have been deposited into our account. Based upon interest rates and our
liquidity, the Superintendent of Finance and Personnel will evaluate whether the funds should be transferred to
our Administration Account at Founders Bank or leave on deposit in the Illinois Fund. Upon notification,
Superintendent of Finance and Personnel would record the tax payment in the accounting records of the
district. (M-Information / Communication)

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Fees and Admissions
Fees and admissions are collected for participation in programs and classes. Programs include both those that
require advance registration and “drop-in” programs such as open gym. These fees and admissions are accepted at
numerous locations throughout the district and can be paid, with some exceptions, in person, by mail, or by fax.
Most fees and admissions are collected in advance or at the time the program takes place. Under limited
circumstances, fees are paid in installments. With the exception of the cash register at the Golf Course Clubhouse
(see Rentals – Golf), all cash registers are tied into the Districts accounting system for recording the transaction in
the Districts books and records.
Administration
Administration does not offer programs but will accept non-credit card registrations. Patrons wishing to register
and make payments generally see the front desk staff, however anyone in Administration can accept registrations.
The Administration Office does not maintain a cash drawer so payments must be for the exact amount. Patrons
are given a receipt for all transactions. The receipt is initialed by Administration staff accepting the payment,
dated, and they enter the program code and participant’s name. Administration however does not keep a duplicate
copy of this receipt nor are they pre-numbered. A money receipt book is kept for all non-registration payments
(i.e. entertainment books, freedom of information act requests, NSF check payments, etc.) which does contain a
duplicate copy maintained by Administration.
Oakview
Registration forms are date and time stamped and placed into a drop safe for delivery to Oak View for processing
the next morning. Registration forms are entered into a registration log which lists the facility, program number,
amount paid, and the participant’s name. This log is initialed by the courier the next morning when the forms are
removed from the drop safe (see cash control procedures).
Registration takes place at the front desk at Oak View. All front desk staff are permitted to accept registrations.
The standard registration forms are used for all programs except the programs listed below. These payments are
taken through the cash register:
General Gift Certificates Donations for theatre ad books

Pool memberships Open Gym
Mom’s time out OV Babysitting
Concert Income Video income
Theatre Donations Season Tickets-gift certificate
Dance Recitals Senior Co-op
Spec. Rec. Fund Raiser Spec. Rec. Donations
Nature Tours Oak View Facility Rentals
Super Cooker Park Permits
Games Galore Pool Coupon Books
Co-op Support Rev. Make-up/costume fees (theatre)
Pool Coupons – Adult, Child, Senior, Family, Camp

The cash register is located behind the front desk and its access is limited to the front desk staff. When not in use,
it is under lock and key. Normally there are two front desk staff for each shift. Since there is only one cash
register, it is shared by the front desk staff. At the beginning of each shift the cash drawer is counted and balanced
(balance in drawer is $150.00). The drawer is also balanced at the end of the shift by one of the front desk staff
and verified by the second. (R-Control Activities) If a discrepancy exists with the count, the drawer is re-
verified. A cash drawer log is completed, indicating any over / shortage, and initialed by the parties involved.

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Receipts are not issued for registrations being paid via check or credit card. The cancelled check or credit card
receipts serve as the patrons receipt. Patrons paying by cash are issued a hand written receipt. The front desk staff
however does not keep a duplicate copy of this receipt nor are they pre-numbered.
Once the registration process is completed, the forms are entered into a registration log. A three part deposit slip
is prepared by the front desk staff, one part accompanies the deposit to the bank, one part remains at Oak View as
a copy, and one part is sent to Administration for verification against the accounting records and for bank
reconciliation purposes. The deposit is then entered in the deposit log (see cash control procedures) and the
deposit is placed in the drop safe. (R-Control Activities)
Deposits from Oak View are deposited into the Recreation Account (account #5069404) at Founders Bank.
Dance, pre-school, and summer camp programs allow patrons to pay their fees in two installments. One-half of
the fee is due at the time of registration and the balance is due at a specified date. Supervisors of the programs are
responsible for verifying these class lists for timely payments. Second notice letters are sent out by the program
supervisor for delinquent accounts. Late fees are assessed by the supervisor of a given program.
Pavilion
All programs, classes, and leagues run by the Pavilion require a registration form and they are processed by the
front desk staff at the Pavilion. The Pavilion does utilize a cash register which is located behind the front desk and
its access is limited to the front desk staff. When not in use, it is under lock and key. With only one cash register,
it is shared by the front desk staff. Due to overlapping shifts, the drawer is closed out at the following intervals:
Weekdays (Open-Noon), (Noon-3pm), (3pm-6pm), (6pm-Close)

Weekends (Open-Noon), (Noon-5pm), (5pm-Close)
The cash drawer is counted and balanced (balance in drawer is $100.00) in the break room behind the front desk
and is verified by a second individual. If a discrepancy exists with the count, the drawer is re-verified by the front
desk staff counting the drawer. A cash drawer log is completed, indicating any over / shortage, and initialed by
the parties involved.
Receipts are given to all customers. The receipt depends on the transaction. Receipts are not issued for
registrations being paid via check or credit card. The cancelled check or credit card receipts serve as the patrons
receipt. Hand written receipts are given to all customers that pay with cash. These receipts are not pre numbered.
Adult league registrants are given a copy of the registration form because it is in triplicate. Another copy goes to
Oak View for processing, and the final copy is given to the league supervisor. Transactions through the point of
sale register print a receipt that is given to the customer. Point of sale transaction receipts are kept at the facility.
Once the registration process is completed, the registration forms are entered into a registration log and placed in
a drop safe for delivery the next day to Oak View for processing. A three part deposit slip is prepared by the front
desk staff, one part accompanies the deposit to the bank, one part remains at the Pavilion as a copy, and one part
is sent to Administration for verification against the accounting records and for bank reconciliation purposes. The
deposit is then entered in the deposit log (see cash control procedures) and the deposit is placed in the drop safe.
(R-Control Activities)
Deposits from the Pavilion are deposited into the Pavilion Account (account #5069405) at Founders Bank.
High school competitive soccer and sport camp programs allow patrons to pay their fees in installments. For
soccer, $100.00 is required at the time the registration is accepted and the balance must be paid before the start of
the league. Sports camp is paid in three installments. One-third of the fee is due at the time of registration, one-
third is due the third week of camp and the balance is due the seventh week of camp. Supervisors of the programs
are responsible for verifying that all payments are made. They also conduct follow up and make calls to
delinquent accounts. Soccer teams cannot compete in the league if their fees have not been paid.
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Pools
The pool locations do not accept registrations for aquatic programs, only the outdoor pools accept daily fees.
Each outdoor pool has one cash register located at the entrance to the pool which is shared by staff. Only the
cashier and manager on duty are allowed to accept payments (cash and checks only), all of which are rung-up on
the cash register. Due to the location of the cash register, it is not allowed to be unattended at anytime the pool is
open to the public. The drawer is balanced (balance in drawer is $100.00 at Central and Centennial and $150.00 at
Memorial) at the end of the shift by the manager on duty in the presence of the cashier(s). If a discrepancy exists
with the count, the drawer is re-verified. A cash drawer log is completed, indicating any over / shortage, and
initialed by the parties involved. It is also entered on the manager’s pool log. (M-Control Activities)
Patrons generally discard receipts which create unsafe conditions when mixed with water. Accordingly, receipts
are not issued unless the patron requests one.
A three part deposit slip is prepared by the cashier. The deposit slip is initialed by the cashier and the manager on
duty. One part of the deposit slip accompanies the deposit to the bank, one part remains at the pool as a copy, and
one part is sent to Administration for verification against the accounting records and for bank reconciliation
purposes. The deposit is then entered in the deposit log (see cash control procedures). The manager will then seal
the deposit in an envelope, initial it across the seal and place it in a drop safe in the presence of the cashier. (R/M-
Control Activities)
Golf
All greens fees, and payments for cart rentals, golf outings, league play, simulators, etc. are taken by the cashiers
in the pro shop. The golf course utilizes a cash register which is located in the pro shop and can be accessed by all
cashiers. With the exception of golf outings which require a contract and leagues that have a sign-in sheet, all
other programs are rung through the cash register.
The cash drawer is counted and balanced (balance in drawer is $150.00) each shift by a cashier or supervisor but
is not verified by a second individual. Register tapes are matched to the deposit slip to verify accuracy. If a
discrepancy exists with the count, the drawer is re-verified by a second individual, either another cashier or by a
supervisor. A cash drawer log is completed, indicating any over / shortage, and initialed by the parties involved.
Receipts are given to all patrons golfing or renting a cart. These receipts are presented to the Starter as proof that
fees have been paid. Golf outings require a contract, a copy of which is given as a receipt to the organizer of the
outing. These contracts are pre-numbered. The golf course copy of the contract is filed in a contract binder.
The cashier on duty is responsible for preparing deposits. A three part deposit slip is prepared by the cashier, one
part accompanies the deposit to the bank, one part remains at the golf course as a copy, and one part is sent to
Administration for verification against the accounting records and for bank reconciliation purposes. The deposit is
then entered in the deposit log (see cash control procedures) and the deposit is placed in a safe. (R-Control
Activities)Deposits from the Golf Course are deposited into the Golf Course account (account #5069408) at
Founders Bank.
Ice Arena
Registration takes place at the front desk in the Ice Arena. All front desk attendants are trained in accepting and
entering the registrations into the cash register. Class registrations are accepted only during office hours, so only
the attendants or program managers handle the registrations and fees. Registration forms are used for all programs
that have a class code to be entered into the system. The ice arena utilizes a cash register that is used to record
registrations and all other transactions, including Open skate and skate rental fees and freestyle payments for
punch cards or drop-in fees.
There are two cash registers are located behind the front desk with access limited to the front desk staff and
Office Manager. One register is used for open skate and has a balance of $100.00. The other register is used for
registrations and has a balance of $200.00. When not in use, they are under lock and key. The cash registers are
usually used by only one person at a time. The drawers are balanced at the beginning and end of each shift by the
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front desk staff using the drawer and are verified by a supervisor. The ice arena uses a log for the cash register
and the computer terminal to document the drawer balance, any over / shortage, and every person on every shift
each day.
Two part receipts are given for all freestyle payments, contract and rental payments, birthday party payments, and
room rentals. One copy is given to the patron and one copy is kept on file at the ice arena. Receipts for
registration transactions are only given for cash payments. Receipts are not issued for registrations being paid via
check or credit card. The cancelled check or credit card receipts serve as the patrons receipt. Any payments that
are accepted after hours, i.e. rental payments, concession deposits, are deposited in the safe and the paperwork is
left at the front office to be entered into the system the next day by the Office Manager.
A separate cash register is located behind the counter in the concession area. All concession workers have access
to the cash register. The drawer is balanced (balance in drawer is $100.00) each night unless there is no activity.
The drawer is balanced by the concession staff cashier and is verified by a supervisor. The drawer is recounted
the next morning by the concession staff cashier before using the drawer.
At the end of each shift, the front desk staff prepares the bank deposit. The deposit is verified by a supervisor
before being sealed in an envelope. A three part deposit slip is prepared by the front desk staff, one part
accompanies the deposit to the bank, one part remains at the ice arena as a copy, and one part is sent to
Administration for verification against the accounting records and for bank reconciliation purposes. The deposit is
then entered in the deposit log (see cash control procedures) and the deposit is placed in a safe. The Office
Manager would also verify the deposits on a daily basis. (R-Control Activities)
Deposits from the Ice Arena are deposited into the Ice Rink account (account #5069406) at Founders Bank.
The house league hockey program allows patrons to pay their fees in two installments. One-half of the fee is due
at the time of registration and the balance is due at a specified date. The Office Manager is responsible for
verifying that all payments are received. Players whose payment is not made (or arrangements for payment) are
suspended from participating until the fee is paid.
Racquet Club
Registration takes place at the front desk of the Racquet Club. The only exception is four days when the
gymnastics department has a separate table set up to accept registration. All front desk staff can accept
registration. Registration forms are used for all programs and are entered into a registration log. There are
separate logs for tennis, gymnastics, and any registration going to Oak View for processing. After the registration
is logged, the payment is attached to the registration form and the registrations for gymnastics and those going to
Oak View for processing are put in the drop safe. Tennis registrations are put in the locked box bolted to the floor
(located next to the safe). The only people able to open the locked box are the Director of Tennis, the Racquet
Club Manager and the Assistant Manager.
Registration for tennis programs are done by the Assistant Manager at the Racquet Club. On a daily basis the
Director of Tennis opens the locked box and verifies the registrations with the tennis registration log sheet.
Because many patrons are placed in progressional tennis programs by the Director of Tennis, it is necessary for
her to review the registrations for placement in the correct level / class. Once she has reviewed the registrations,
she initials the registration log to verify all registrations are intact. She then puts the registrations and log sheet
back in the locked box. The Assistant Manager then takes the registrations and log sheet and enters the
registration batch into the computer and makes the deposit for the batch. Original registration forms are sent to
the Administration Office along with the batch and deposit paperwork. A second copy of the paperwork is kept at
the Racquet Club.
The cash register is located at the front desk and is accessible by the front desk staff, manager, assistant manager,
gymnastics manager, and gymnastics assistant manager. The cash register is used to record all payments received
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by the Racquet Club. The cash drawer is closed out by the employee who worked that shift and is not verified by
a second individual. In the event it is very busy, the new shift may start while the previous shift closes out behind
the front counter. As a rule, the drawer is balanced (balance in drawer is $100.00) after each shift. In very slow
times (summer), two shifts may be combined together. (The back-up drawer is kept at $250.00.) The printer prints
a start of shift receipt, a receipt for each transaction and an end of shift receipt, each of which are three part
receipts. (R-Information / Communication) These receipts, along with a daily cash report form is used in
balancing each shift. (R-Control Activities) One complete receipt tape is sent to administration with a copy of the
daily cash report form and copies of all credit card transactions. A duplicate copy of all this is kept at the Racquet
Club. The third copy of each transaction receipt goes to the patron.
Deposit logs and a log of starting amounts of the front and back-up drawers are kept at the front desk and filled
out for every shift. Each employee is responsible to verify the amounts in the drawer before they start their shift.
A record of this is also on the daily cash report form.
Deposits are prepared by the front desk staff. Deposits are not verified by a second individual as there is only one
person on duty at a time. A three part deposit slip is prepared by the front desk staff, one part accompanies the
deposit to the bank, one part remains at the Racquet Club as a copy, and one part is sent to Administration for
verification against the accounting records and for bank reconciliation purposes. The deposit is then entered in the
deposit log (see cash control procedures). (R-Control Activities)
Deposits from the Racquet Club are deposited into the Racquet Club account (account #5069407) at Founders
Bank.
Extended payment plans are not offered at the Racquet Club except for tennis members who are charged monthly
dues as part of their membership plan. If these members fall two months behind in dues, their membership is
suspended and they are not allowed to use the facility until their dues are up-to-date. Letters are sent to members
behind in their monthly dues.
Rentals
Rental fees are collected primarily from the rental of rooms and parking lots at various facilities throughout the
district.
Oak View
Oak View offers various rooms for rentals. Patrons requesting a room rental fill out a four part rental form. A
room deposit is received at the time the rental form is received. The patron is given one copy as their receipt. The
deposit check is attached to the rest of the forms and is placed in the safe in the front office.
Each morning a Registration Imputer opens the safe and retrieves the registration forms and gives them to the
Facility Manager. If the Facility Manager is not there, the room rental forms go back in the safe. The Facility
Manager enters the date in the facility reservation system. Once entered the Facility Manager signs and puts an
“O” in the right hand corner of the rental form. She/he gives the one copy to the maintenance department, the one
copy she/he keeps and one copy is put at the front desk in chronological order. He/she then logs the deposit check
and places it in the safe in the inner office, where the bank deposits are kept (see cash control procedures). (M-
Control Activities)
When the front desk receives a payment on the rental, they attach the check, cash or charge to the copy
maintained at the front desk and puts it in the front desk safe for the Facility Manager.
When the Facility Manager receives the copy with the payment attached, she/he puts an “X” in the “O” on the
copy he/she maintains and returns the front desk copy with the payment to the front desk where it is rung up in
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the cash register. These payments would then be included in the daily deposits prepared by the front desk staff.
(M-Control Activities)
Security checks received are sent to Administration where they are logged. After the rental is over and there has
been no damage, etc to the room, the Facility Manager e-mails the Superintendent of Finance and Personal to
inform him that it is alright to send the deposit checks back to the renters. (S-Control Activities)
Pavilion
The Pavilion provides rentals for shows and expos. The Pavilion Manager handles all arrangements and is
responsible for issuing invoices and assuring payments are received. When payments are received, they are
recorded through the cash register and the payment is processed along with other cash drawer amounts.
Golf
Party rentals take place at the clubhouse and are handled by the Clubhouse Manager or Assistant Manager. Each
rental requires a contract, a copy of which is given to the renter. The original is maintained by the Clubhouse
Manager who would issue a separate room rental receipt at the conclusion of the rental. The room rental receipt is
a two part receipt, one copy is given to the renter and one copy is attached to the original contract and filed at the
clubhouse. Deposits of room rental deposits and final payments are rung up on the cash register behind the bar
area by the Manager or Assistant Manager. The payment is then deposited with all other receipts for the day. The
cash register in the Clubhouse is not tied into the Districts accounting system. Accordingly, a “Z” reading is taken
and the information is entered onto a spreadsheet. The information on the spreadsheet is then entered into the
accounting system by someone other than the person completing the spreadsheet.
The cash register located in the bar area is also used to record food and beverage purchases in the dining room.
The register can only be used by one person at a time. During the slow season, the drawer is closed at the end of
the day. During the peak season, it is closed at the end of each shift.
The cash drawer is counted and balanced using a prescribed form (balance in drawer is $150.00) generally by the
person who used the drawer but is not verified by a second individual. If a discrepancy exists with the count, the
drawer is re-verified by the person counting the drawer. A cash drawer log is completed, indicating any over /
shortage, and initialed by the parties involved.
A three part deposit slip is prepared by the person who closed out the drawer, one part accompanies the deposit to
the bank, one part remains at the golf course as a copy, and one part is sent to Administration for verification
against the accounting records and for bank reconciliation purposes. The deposit is then entered in the deposit log
(see cash control procedures) and the deposit is placed in a safe. (R-Control Activities)
Ice Arena
Room rentals are handled by the office manager and require that the fee be paid in full at the time the room is
rented. Each rental requires a completed facility rental form along with a $ 50 deposit. The original is filed in the
Ice Arena Office and a copy is given to the customer. Deposits of room rental fees are made by the office
manager or in their absence, the supervisor on duty by entering them into the cash register. Birthday party fees are
collected by the hostess at the completion of the party. The hostess prepares the deposit by completing a deposit
slip in the presence of the front desk staff, attaching the payment to the deposit slip and placing it in the drop safe.
Other
Administration
Beyond the recording of receipts for taxes and parking lot rental, Administration is responsible for the recording
of receipts based upon contractual arrangements such as vending commissions. Deposits are made primarily by
the Superintendent of Finance and Personnel. A three part deposit slip is prepared, one part accompanies the
deposit to the bank, one part remains in the deposit book as a copy, and one part is given to the Controller as
documentation to prepare the journal entry to record the receipt in the accounting records. Once prepared, the
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Superintendent of Finance and Personnel gives the deposit and the deposit slips for the bank and for the journal
entry to the Controller who would verify the deposit and enters the deposit into the deposit log (see cash control
procedures). At month’s end and as part of the bank reconciliation process, the Controller would verify that all
deposits have been recorded properly in the financial records. (R/S-Control Activities)
Payroll Process Description
This process identifies the procedures for hiring employees and the issuance of payroll checks.
Financial statement accounts that are included in this process are salary, wages, and benefits.
Description of the Payroll Process

The payroll department at the Park District is comprised of three individuals. Payroll is processed on a biweekly
basis is for all employees. Overall payroll processes checks for approximately 55 full-time employees and 260
part-time employees (as of 4/30/03). The District has recently initiated a direct deposit option for all employees.
Every employee, whether they are being hired for the first time, or rehired, must complete the following steps
before they can begin working at the Park District:
Complete application form. The completion of the form is self-explanatory. The applicant must complete the type
of work they are applying for. If this section is left blank or a generic response such as “anything” or “open” is
indicated, the application will be disqualified. The applicant also must complete the section for references
including the phone numbers for each reference. The applicant must sign and date the security release form
included in the application.
Complete the Payroll Status/Change form. The completed form must be signed / approved by the Department
Head responsible for the employee, the Superintendent of Finance and Personal, and the Director of the Park
District.
Complete tax forms W-4 Employee’s Withholding Allowance Certificate and IL-W- 4 Employee’s Illinois
Withholding Allowance Certificate
I-9 Employment Eligibility Verification form with either of the following forms of identification:
a. Driver’s License or State I.D. with photo or school I.D. with photo and
b. Social Security card or birth certificate
c. A U.S. passport or alien registration card is sufficient identification by itself
Other forms of identification are acceptable but these are the most common ones given. A list of acceptable forms
of identification for the Form I-9 is available in the payroll department.
Orientation (Employee) procedure (Full time and Part Time employees)
Employee pre employment physical (Full time employees only)
Employee background check
Driver Abstract
The paperwork is reviewed for completeness by the Office Manager before employment begins. Completed
paperwork received by the Tuesday proceeding the pay week will be paid on the next payday. Completed
paperwork received after Tuesday proceeding the payroll week will delay the employee’s check until the
following payday. (M-Control Activities)
Payroll Check Issuance Process

Employee timesheets are printed and delivered to each department via inter-office mail.
The department head or supervisor fills out employee timesheets based on time cards, time sheets and salary
agreements. Except for exempt staff, administration front desk staff and instructors, virtually all other employees
use time cards. Instructors use either a time sheet or salary agreement (salary agreement is used when an

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instructor gets paid per class or per class participant rather than on an hourly basis). Administration front desk
staff (and Oak View front desk staff when they work in a different department) completes time sheets. Exempt
staff time is recorded in the payroll system via an auto post function. Salary agreements are signed by the
employee at the time they are entered into, time sheets are signed by the employee at the time of completion.
Employee timesheets are signed by the department head or supervisor who completed them and are delivered to
the payroll department beginning 5:00 pm Monday of the payroll week. The payroll clerk audits/edits the time
cards and salary agreements against the employee timesheets and verifies that the timesheets have been signed.
Any questions are directed back to the department head or supervisor. (R-Control Activities)
The payroll clerk takes an adding machine tape of the hours for each department. The payroll clerk enters the
employee information from the timesheets into the computer. The only pay information that the payroll clerk does
not enter is the administration department payroll. After the entire payroll information is input, a Gross Earnings
Report is run. The Gross Earnings Report lists each employee, the hours worked and the rate per hour and the
department totals hours. The payroll clerk compares total hours by department from the Gross Earnings Report to
the adding machine tapes taken earlier; any discrepancies are reconciled.
Before payroll checks are run, the Superintendent of Finance and Personnel checks the Gross Earnings Report for
anything unusual. If nothing unusual is spotted the checks are printed by the Office Manager. Once the checks are
given to the Administration Office Manager, the payroll clerk does not handle the checks again. (M/S-Control
Activities)
The Office Manager takes the printed payroll checks and runs them through the check-signing machine. When all
the checks have been signed, the Office Manager gives the checks to receptionist for bursting and stuffing into the
payroll envelopes. (S-Control Activities)
The completed checks are then locked in the safe where only the Superintendent of Finance and Personnel, the
Controller/Accounting Supervisor and /or the Office Manager can retrieve them.
Every other payroll period, each department will receive a copy of their department’s gross earnings report. The
department head or supervisor will check the hours and rates for each employee for accuracy. Any discrepancies
or differences are reported to the business office.
Non-Salary Process Description
A purchase order, check request or voucher must accompany every purchase. Purchase orders are required for
those items that have a long-range effect on the budget. Electricity or other utilities do not require a purchase
orders, but purchase of equipment or contractual services that will be received and paid for at a later date would
require a purchase orders.
A check request will be used to reimburse expenses already incurred, emergency purchases or day to day
purchases with immediate receipt of goods. This would include, but is not limited to, purchases for supplies,
emergencies, repairs, subscription, registration, maintenance agreements, petty cash, mileage reimbursements etc.
Vouchers are used to affect payment such as monthly service payments to utility companies or other fixed
monthly bills that do not affect the encumbrance accounts but post directly to the proper expense accounts.
Financial statement accounts that are included in this process include:
• Contractual services
• Materials and supplies
• Insurance
• Utilities
• Other
• Capital outlay

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Description of the Non-Salary Process
Purchase Orders
The purchase orders are completed by Supervisors or above based upon their program / departmental needs. The
person completing the purchase order indicates what is being purchased along with the purchase price and
reviews the budget in order to ascertain that the purchase is within the budget. If the purchase is within budget,
the purchase order must be approved by the manager whose budget is being charged and the request is forward to
the Business Office. (M-Control Activities) If the purchase is not within the budget, the purchase cannot be
made unless it is demonstrated that the purchase is covered by additional revenues or is a necessary and/or an
unforeseen expense. In these cases, the additional revenues or explanation as a necessary and/or unforeseen
expense is verified by the Controller and / or Superintendent of Finance and Personnel by discussing with the
appropriate supervisor and by verifying the budget. The purchase order and supporting documentation is then
approved by the manager whose budget is being charged and the request is forwarded to the Business Office. (M-
Control Activities) Absent the purchase being in budget, being funded through additional revenues, or a
necessary or unforeseen expense, the purchase cannot be made.
In the Business Office, all purchase orders are given to an Accounts Payable Clerk who reviews them for vendor
information, appropriate signatures, account number(s), assigns a purchase order number and obtains the
Controllers approval for purchase orders less than or equal to $1,000 and the Directors approval for purchase
orders more than $1,000. This approval is indicated by the signature of the Controller and / or Director. Once the
purchase order is approved, it is returned to the Accounts Payable Clerk who distributes them to the appropriate
staff. (M-Control Activities)
Check not required – the Accounts Payable Clerk maintains the administration copy of the purchase order, places
the journal copy in the purchase order file, and sends the vendor copy, Business Office copy, receiving copy and
originator’s copy to purchase order originator. The purchase order originator would then be allowed to order
items on the purchase order. When goods are received, goods received are checked against purchase order. If
everything ordered has been received, the receiving copy of the purchase order is signed by the employee who
received and verified the goods. The packing slip and signed receiving copy are then sent to the Accounts Payable
Clerk in the Business Office. If the order is incomplete, the packing slip is filed until the rest of the goods are
received. If it is determined that the remaining goods will be delayed, a partial payment for the goods can be
requested. In this case, the packing slip for the goods received is marked “OK to pay for these items only”, signed
by the employee who received and verified the goods, and sent to the Accounts Payable Clerk in the Business
Office. The Accounts Payable Clerk would enter the completed purchase orders into the accounts payable system
in order to issue a check. Once entered into the accounts payable system but before the check is issued, all
completed purchase orders are inspected by the Controller for compliance with the outlined procedures. Purchase
orders not in compliance with the Park District procedures are returned to staff for an explanation. (M-Control
Activities)
Check Requests
A check request is used for expense reimbursement or a purchase; therefore there should be an invoice or receipt. Forms can be
downloaded from the computer and available to be printed when a check request is needed. The original invoice or receipt is
attached to the check request form, the check request form is approved by the appropriate manager, and sent to the Accounts
Payable Clerk in the Business Office for payment. When the check request is received by the Accounts Payable Clerk, it is checked
for completeness, assigned a voucher number and forwarded to the Superintendent of Finance and Personal or Controller for
approval if $1,000 or less and the Director if it is over $1,000.00. (M-Control Activities) A copy of the approved check request
will be sent to the originator for his/her file. All requests should be given at least 5 business days before a check will be printed and
in the case of a check over $1,000.00, allow 7 business days.

DOCUMENTATION
27
Vouchers
A voucher is used for the payment of regular monthly bills such as utilities, waste removal, health insurances, etc.
The Accounts Payable Clerk in the Business Office is responsible for all voucher payments. The Accounts
Payable Clerk checks the invoice for accuracy, assigns a voucher number, and gives to the Controller for review
and signature. Vouchers are approved by the Controller if under $1,000 and by the Director if over $1,000 before
a check is issued.
Procurement Card Program

The MasterCard Procurement Card (P-Card) program is a simplified and cost-effective method of purchasing and
remitting payment for approved expenditures. The P-Card can be used for retail purchases in person, by telephone
or by fax. The P-Card will be used in accordance with the guidelines established in the Procurement Card
Procedures Manual and this document. A copy of the manual will be given to each employee that is issued a P-
Card. The P-Card is to be used with the same sense of responsibility and security that would be used with a
personal credit card.
All credit cards will be issued at the request of the Oak Lawn Park District and card usage will be audited and
may be restricted at any time. Only the employee whose name is on the P-Card is authorized to use the card. (R-
Control Activities)
This document, and the Procurement Card Procedures Manual, provides the guidelines under which the P-Card
may be used. Each employee that receives a P-Card will be given a copy of the Procurement Card Procedures
Manual. After reading the manual the employee must sign Cardholder Authorization Form (located in the back of
the manual) stating that they understand and will comply with the guidelines of the program. The Business Office
will schedule training sessions for all employees before they receive their P-Card. (A-
Information/Communication) Once the employee receives their card they must fill out the Acknowledgment
Form (located in the back of the manual) for the receipt of their card and then call the Harris Bank activation
number to activate the card.
Record keeping will be essential to ensure the success of the program. This is not an extraordinary requirement
since standard reimbursement policies require the retention of all receipts. (Refer to the NON-SALARY
PROCESS DESCRIPTION section of this document beginning on page 26).
General Information
• The Purchase Card may be used at any merchant that accepts MasterCard credit cards.
• The Purchase Card is not to be used for personal purchases.
• The employee is responsible for the security of their card and any transactions made against the card.
The Purchase Card is issued in the employee’s name and it will be assumed that any purchases made
against the Purchase Card will have been made by that employee.
• Use of the Purchase Card not in accordance with the guidelines established for this program will result
in revocation of the card.
• The employee will not be charged an annual fee for their card.
• Harris Bank will pay merchants within 48 hours of (the merchants’) posting of the transaction to
MasterCard.
• The appropriate department budget is reduced by each transaction and reflected by the financial
statements of the following month.
• Original receipts and a copy of the Monthly Card member Activity Report (printed from Harris details
Online Website) should be forwarded to the Business Office each month. (R-Control Activities)
• All purchasing procedures and guidelines are to be adhered to. (Refer to the Oak Lawn Park District
Financial Procedures Manual).

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28
• The Purchase Card program has been established as another method of payment for eligible purchases.
It does not eliminate the District’s purchasing policy or procedures. It is intended to increase
efficiency and reduce costs. No circumvention of the purchasing procedures by the improper use of the
Purchase Card shall be tolerated.
• Finally, it is intended that the guidelines established herein be viewed as the minimum standards for
departments, who may wish to establish additional controls beyond these guidelines. Contact the
Business Office regarding establishing additional internal controls.
Acceptable MasterCard Purchase Card Purchases
The following information provides examples of purchases that are appropriate for the Purchase Card:
• Purchases of a small dollar amount
• Fuel
• Approved supplies
• Conference/Seminar registrations (Board Members and Director only)
• Travel/Conference expenses, including lodging (Board Members and Director only)
• Hardware stores
Unacceptable MasterCard Purchase Card Purchases
The following items define where the Purchase Card is not an appropriate choice:
• Alcoholic beverages/tobacco
• Lottery tickets
• Technology related products
• Cash advances or ATM’s
• Services
• Gift certificates
Department specific regulations may add further restrictions to this list so the employee must check with their
supervisor for any additional restrictions.
This list is not intended to be all-inclusive. If there are specific questions, please call the Business Office for
assistance.
Program Restrictions
Each MasterCard Purchase Card has been assigned a monthly credit limit determined by the Director, Department
Head and Superintendent of Finance & Personnel. Harris Bank will only take directions from the authorized
program administrator. The program administrator (i.e., Business Office) must approve all requests and limit
changes or Harris Bank will not make those changes. (A-Control Environment)
The MasterCard will be accepted for purchases of generally approved Park District commodities. Businesses and
services not determined to offer products commonly accepted for Park District use have been blocked from
accepting the Purchase Card. (A-Control Activities) Limiting the acceptable Merchant Category Codes does
this. The Merchant Category Code is a four (4)-digit classification code used in the authorization and settlement
systems to identify the type of merchant (commonly known as Standard Industrial Code “SIC”).

DOCUMENTATION
29
Levels of credit authorization are in place to clearly define the individual purchasing limit controls. We have
chosen to define our control limits by levels. Each designated level will have a transaction limit, daily limit and
monthly limit. Each Department Head and the Superintendent of Finance & Personnel will determine the assigned
levels.
If a merchant declines an employee’s card and that employee feels the decline should not have occurred, contact
the Business Office or Corporate Client Services at 1-800-263-2263 within 24 hours.
Request for transaction, daily and monthly limit changes are to be made by each Department Head to the
Superintendent of Finance & Personnel. (A-Control Environment)
Reconciliation and Payment

The MasterCard Purchase Card program carries corporate, not individual, liability. A single invoice covering all
Park District purchases using the Purchase Card program will be paid each month by the Business Office.
It is required that all original receipts for goods purchased are retained. (R-Control Activities) If purchases
via phone or mail, the merchant will be required to include a receipt with the goods when the product is shipped.
If that is not possible, a packing slip must be obtained when the shipment is received to document the purchase.
Each cardholder will need to review their statement (at a minimum of one time per month) for all transactions
made against their MasterCard Purchase Card during the previous billing cycle. (R-Control Activities) Each
cardholder will be notified by e-mail to review and approve their transactions on the last working day of the
month. Original receipts and a copy of the Harris Bank statement (printed from the website), with each purchase
coded to the appropriate general ledger number should be forwarded to the department manager, superintendent
and/or department head for their review and signature each month. The approved statements should then be
forwarded to the Business Office. (M/R-Control Activities)
The cardholder may keep a transaction log of all receipts and statements. The log serves to remind cardholders of
transactions and assists in reconciliation of the monthly statements. A periodic audit will be conducted of card
activity, retention of receipts, reconciled detail and signed monthly statements.
Misuse of the MasterCard Purchase Card includes:
• Using the Purchase Card for personal purchases

• Purchase of unauthorized items
• Use of the Purchase Card by someone other than the cardholder
• Fraudulent or inaccurate record keeping
In the case of misuse, the appropriate Supervisor, Department Head and/or Business Office staff shall document
the occurrence on the Cardholder Misuse Report and forward it to the Superintendent of Finance & Personnel for
further action. (M-Control Activities)
When The Records Do Not Agree with The Monthly Statement

There may be an occasion when items found on the transaction log do not correlate with the retained receipts or
monthly cardholder statement. Reconciliation of the monthly statement is very important to determine if the
employee has made a particular transaction, the amount of the transaction is correct, or there is a quality or
service issue. (R-Control Activities)
The first recourse is to contact the merchant involved to try to resolve the error. If the merchant agrees that an
error has been made, the account will be credited. The transaction in question is to be highlighted on the
statement as a reminder that the item is still pending resolution. The statement should be checked to ensure that
the credit is received on the next monthly statement. (R-Control Activities)

DOCUMENTATION
30
If unable to resolve the issue directly with the merchant, contact the customer service department at Harris Bank,
1-800-263-2263 and immediately notify the Business Office. When calling be sure to have detailed information
regarding the dispute. State that you would like to dispute a charge on your Purchase Card. You are required by
law to submit the information in writing to initiate a claims dispute with Harris Bank. The amount of the next
monthly statement will be reduced by the amount of the disputed item until the question is resolved. (See
Cardholder Dispute Form at the back of the manual).
Any charge that a cardholder wishes to dispute must be identified in writing within 30 days of the statement date
to Harris Bank.
Each cardholder is responsible for the transactions identified on their statement. When an audit is conducted on
each account, each cardholder must be able to produce receipts that a Park District approved transaction occurred.
If an error is discovered the cardholder is responsible to show that the error or dispute resolution process has been
followed.
Lost or Stolen Cards

The MasterCard Purchase Card is the property of the Oak Lawn Park District and should be secured just as you
would secure your personal credit cards. (A-Control Activities) If your card is lost or stolen contact Harris Bank
customer service number (1-800-263-2263) immediately, then notify the Business Office. When calling customer
service, be prepared to provide your social security number.
Upon notifying Harris Bank, the card will be deactivated immediately. If the card is reported lost or stolen and is
later used, the Merchant will decline it. Prompt action in these circumstances is very important to reduce Park
District liability for fraudulent charges.
Sales Tax
Merchants are usually required by taxing authorities to include sales tax when goods are purchased. The amount
is dependent on a variety of factors, including the state and city where the goods are purchased. Purchases of
items by public entities for their own use are generally exempt from sales tax. The exemption applies to the public
entity, not to the individual.
It is the cardholder’s responsibility to notify the merchant the Park District is tax exempt. The Park District
Illinois state tax-exempt number is “E9997-9942-05” and a copy of the Park District tax-exempt form is included
in the back of this manual. You may need to make a copy of the form, insert the vendor name, and then date the
form prior to issuance (i.e., faxing or mailing). Do not distribute this form to any other employee in the
organization. If they need one, they have been provided with a copy. Should you have additional questions, please
contact the Business Office for assistance.
Check Disbursement Procedures

All open blank check stock is kept in the safe in the Administration Office. Access is restricted via key or
combination access. Blank check stock is taken to the computer for printing as needed and is generally run
weekly by the Accounts Payable Clerk. The Office Manager places one of two signatures on the checks using a
signature plate. The checks, if under $1,000 are given to the Controller or Superintendent of Finance and
Personnel who places the second signature on the check using a signature stamp (S-Control Activities). If the
check is $1,000 or more they are held for the manual signature of the President of the Board of Commissioners.
The President signs checks on a weekly basis. If a check greater than $1,000 is needed immediately, the
President’s signature is affixed using the signature stamp and a copy of the check is kept for the President’s
review. Once signed, checks are given to the front desk staff that either mail them directly to the vendors or holds

DOCUMENTATION
31
the check to be picked up by the person requesting it, based on instructions on the original disbursement
document.
All checks are processed via the above procedure; accordingly no manual checks are prepared.
Bid Process
Where advertised bids are required by the State Code, the advertisement shall describe the character of the undertaking in
sufficient detail to enable bidders thereon to know that their obligations will be either from the advertisement itself or by
reference to detailed plans and specifications on file with the District at the time of the publication of the advertisement. The
advertisement shall state the date; time and place of the opening of the bids, and no bid shall be received subsequent to the
time set forth in said advertisement. The Business Department shall also invite bids by mail, telephone or otherwise. All
bids shall be sealed and opened at the time and place indicated in said advertisement and shall be open to public inspection.
If two or fewer bids are received, the bids will not be opened and the following occurs:
1. The bid opening date is extended by ten (10) days
2. Staff contacts all potential bidders to solicit bids for the new date.
3. Vendors who submitted sealed bids for the original date are contacted and offered the option of
submitting a new bid and having the original bid forfeited, or keeping the original bid.
4. The bid opening proceeds on the second date according to the original specifications regardless of the
number of bids received.
Goods or Services greater than $10,000

All contracts in excess of $10,000 (except as otherwise authorized herein) shall be awarded by the Board and to
the lowest responsible bidder. In determining the responsibility of any bidder, the Board may take into account
other factors in addition to financial responsibility, such as past records of transactions with the bidder,
experience, adequacy of equipment, ability to perform, time limits, services to be rendered by the bidder, location
of bidder, conformity with specifications, terms of delivery and other pertinent considerations. Any and all bids
reviewed in response to an advertisement or otherwise may be rejected by the Board if the bidder is not
determined responsible or the character or quality of the services, supplies, materials, equipment or labor does not
conform to the Board’s requirements or if the public interest may otherwise be served thereby. The Board
reserves the right to award a contract for all or only a portion of the specified bid work.
Responsible Bidder’s Ordinance
In determining which bidder is a “responsible bidder” on Oak Lawn Park District projects, the bidder must
comply with the following criteria and submit an affidavit of compliance, in addition to any other requirements as
determined from time to time by the park district for the specific type of work to be performed. District attorney
shall promulgate an affidavit, which shall be executed with the park district contract and which shall require the
following certifications:
A. Compliance with all applicable laws and codes and ordinances prerequisite to doing business in Illinois
and the Village of Oak Lawn, including Village licenses:
B. Affidavit of compliance with:
1. Submittal of Federal Employer Tax Identification Number or Social Security Number (for
individual):
2. Provisions of Section 2000(e) of Chapter 21, Title 42 of the United States Code and Federal
Executive Order No. 11375 (known as the Equal Opportunity Employer provisions);

DOCUMENTATION
32
C. Certificate of insurance indicating at least the following coverage at minimum limits established by the
park district; general liability, worker’s compensation, completed operations, automobile, hazardous
occupation, product liability and professional liability;
D. Compliance with all provisions of the Illinois Prevailing Wage Act, including wages, medical and
hospitalization insurance and retirement for those trades as covered by the Act;
E. Participation in apprenticeship and training programs approved and registered with United States
Department of Labor’s Bureau of Apprenticeship and Training;
F. Compliance with the applicable provisions of the Illinois Human Rights Act and the rules of the Illinois
Human Rights Commission;
G. Adoption of a Sexual Harassment Policy pursuant to Illinois Public Act 87-1257’
H. Furnishing of required Performance and Payment Bonds:
I. Certificate of no delinquency in the payment of any tax administered by the Illinois Department of
Revenue;
J. Certificate that the bidder is not barred from bidding or contracting as a result of a violation of either
Section 33E of 33E-4 of Ch. 720, Article 5 of the Illinois Compiled Statutes;
K. Affidavit that the bidder has not only the financial responsibility but also the ability to respond by the
discharge of the contractor’s obligations in accordance with that which is expected or demanded under the
terms of the contract;
L. Compliance with a Contractor’s Drug-Free Workplace Certification;
M. Submission of an Indemnity and Hold Harmless Agreement; and
N. An Anti-collusion Affidavit of Compliance;
This ordinance shall be in full force and effect from and after its passage and approval in the manner provided by
law.
PASSED THIS 13TH day of August, 2007

Oak Lawn Park District Board of Commissioners
Fixed Asset / Capital Outlay Process Description
This process assesses the need for facilities and equipment, determines how best to acquire them, oversees their
design and construction and operates and maintains them.
Financial statement accounts that are covered by the internal controls listed on the Internal Control Grid include
the following:
• Land, building, machinery and equipment and improvements

• Accumulated depreciation
DOCUMENTATION
33
• Depreciation expense
Funding Process
Annual
Annual capital projects are funded based upon the availability of proceeds from the annual general obligation
bonds. The proceeds from the annual general obligation bonds issued are first designated for the retirement of
alternative revenue bonds, installment purchase contracts, mortgages and any other non-general obligation debt
payments. Of the remaining funds, the Treasurer would recommend an amount that would be available for the
current year capital projects.
Long-term
Projects that are larger in nature and require funding in excess of the funding provided for annual projects are the
result of extended discussions between the Board and staff. These discussions focus on the feasibility and scope
of the project. Once the scope and cost of the project is determined, the Treasurer and or the Superintendent of
Finance and Personnel would determine the financing option that would best serve the District. The Park District
Attorney is responsible for preparing the necessary documents to issue the debt necessary to fund the project.
Capitalization Policies and Procedures
The Park District establishes a capitalization policy for financial accounting purposes for land, buildings, and
equipment used in the operations of the District. Assets are capitalized based on the following criteria:
1. Land – Cost to be capitalized includes all costs connected with the acquisition of land and costs incurred
in preparing the land for its ultimate use. These include but are not limited to the cost of purchase,
appraisals, professional services, and title insurance.
2. Land Improvements – Improvements to be capitalized include the value of permanent improvements

having a cost in excess of $ 5,000. Examples included fences, roads, lighting systems curbs, sidewalks,
pavements, gutters, tunnels and bridges. All costs of land improvements associated with newly
constructed buildings will be capitalized.
3. Buildings – Cost to be capitalized includes all costs related to the acquisition or construction of buildings.
Acquisition cost includes but is not limited to the cost of purchase, professional services, appraisals and
title insurance. Construction costs include but are not limited to the cost of professional services,
materials, labor and site preparation.
4. Building Improvements – Building Improvements to be capitalized are significant alterations or

structural changes that a) cost in excess of $5,000 and b) meet one or more of the following conditions:
a. The project extends the useful life of the building beyond what was originally scheduled.
b. The project substantially changes the use or purpose of the original space.
c. The project expands the total square footage of the building.
Note: As part of the annual budget process, the Board of Commissioners approves funding for repairs and
maintenance. This would include the funding of new repairs and maintenance projects as well as carry-
over projects. (M-Control Activities)

DOCUMENTATION
34
5. Demolition of Buildings – The book value of the building will be written off when a building is
demolished. If the land is maintained and the original value cannot be determined, the land will be
recorded at no value.
6. Purchased Equipment – Purchased Equipment to be capitalized is any article of nonexpendable tangible

personal property with a useful life of one year or more and a cost of $5,000 or more.
7. Software – Operating software included in the price of the hardware will be capitalized. When purchased
separately, software will be capitalized if the cost exceeds $5,000.
8. Donated Assets – Land, buildings, and books received as a gift will be capitalized at the fair market or
appraised value at the date of the gift. If market value or appraised value is not available, the gifts will be
recorded at no value or the acquisition cost incurred by the District. Equipment received as a gift having a
fair market value or appraised value of $ 5,000 or more will be capitalized.
11. Sales or Disposals of Capitalized Assets – The book value of land, building, and equipment will be
removed from the accounting system when sold, disposed of, or declared surplus property by the Board of
Commissioners.

DOCUMENTATION
35
Equipment Classifications
The following is a listing of the different equipment classifications:
Computer Equipment: Includes all data processing, word processing, computing, microcomputers and
operating software only when included with the purchase of the hardware.
Office Equipment: copiers, fax machines, and audio visual equipment, etc.
Furniture and Fixtures: Includes general purpose furniture such as desks, cabinets, and tables.
Vehicles: Includes light and heavy-duty vehicles such as trucks, tractors, and rider-mowers.
Miscellaneous Equipment: Includes all items that meet the capitalization criteria but do not fall into any of the
other equipment classifications.
Depreciation Expense Policies
Fixed assets used in governmental fund types of the Park District have been recorded in the general fixed assets
account group. As such, no depreciation is provided on general fixed assets. The District will implement GASB
Statement 34 for the year ended April 30, 2004. This statement requires the depreciation expenses on these assets
to be included as either a direct expense of a function or as an allocated expense for shared assets.
The general guidelines for the depreciation procedures of the District apply only to the costs associated with
buildings, property, equipment and other physical assets used in the operations of the District. Assets are
depreciated according to the following policy:
1. Depreciation on capitalized assets will be calculated over the estimated useful life on a straight-line basis.
2. Land improvements, buildings, equipment, and books will be depreciated using the straight-line method
over a useful life as determined by the Administration Office.
3. A prorated year’s depreciation will be recorded for buildings, building renovations, equipment, and land
improvements in the year they are capitalized.
4. Depreciation of newly constructed buildings will commence in the first month of useful occupancy.
Physical Inventory of Fixed Asset Procedures
Maintenance conducts and annual inventory of all vehicles owed by the District. Computer equipment inventory
is updated as equipment is added, moved or replaced and is tracked on-line with software.

DOCUMENTATION
36
Disposal of Buildings and Equipment
Disposals include equipment which is stolen, destroyed, discarded as surplus property, or otherwise legally
disposed of. The Superintendent of Finance and Personnel is responsible for accounting for the disposal of all
equipment at the time of disposal. The Oak Lawn Police Department is notified when equipment is stolen.
Purchase order requests and purchase orders must indicate if equipment is being traded in as part of the purchase.
Donated Equipment
When a gift of equipment is made to the Park District, the Superintendent of Finance and Personnel will make
certain that the proper accounting entries are made to record the gift if it has a value of $5,000 or more.

DOCUMENTATION
37
Forms

DOCUMENTATION
38
FINANCIAL STATEMENT AND ACCOUNTING PROCESS DESCRIPTIONS AND
INTERNAL CONTROL DOCUMENTATION
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OAK LAWN PARK DISTRICT

INTERNAL CONTROL DOCUMENT

Financial Statement and Accounting Process

FINANCIAL STATEMENT AND ACCOUNTING PROCESS DESCRIPTIONS AND INTERNAL CONTROL

FINANCIAL STATEMENT AND ACCOUNTING PROCESS DESCRIPTIONS AND INTERNAL CONTROL

FINANCIAL STATEMENT AND ACCOUNTING PROCESS DESCRIPTIONS AND INTERNAL CONTROL

Internal Control Evaluation

COSO Integrated Framework

• Reliability of financial reporting

The third dimension includes the five components of internal controls:

FINANCIAL STATEMENT AND ACCOUNTING PROCESS DESCRIPTIONS AND INTERNAL CONTROL

FINANCIAL STATEMENT AND ACCOUNTING PROCESS DESCRIPTIONS AND INTERNAL CONTROL

Accounting Process Description

Financial Statement Description

FINANCIAL STATEMENT AND ACCOUNTING PROCESS DESCRIPTIONS AND INTERNAL CONTROL

FINANCIAL STATEMENT AND ACCOUNTING PROCESS DESCRIPTIONS AND INTERNAL CONTROL

Assets 2006 Reference

Balance Sheet Detail 2006 Reference

FINANCIAL STATEMENT AND ACCOUNTING PROCESS DESCRIPTIONS AND INTERNAL CONTROL

FINANCIAL STATEMENT AND ACCOUNTING PROCESS DESCRIPTIONS AND INTERNAL CONTROL

Total Bonds and Notes Payable $ 10,852,743

FINANCIAL STATEMENT AND ACCOUNTING PROCESS DESCRIPTIONS AND INTERNAL CONTROL

FINANCIAL STATEMENT AND ACCOUNTING PROCESS DESCRIPTIONS AND INTERNAL CONTROL

DIRECT OPERATING REVENUES

NON-OPERATING INCOME (EXPENSES)

LOSS BEFORE TRANSFERS $ (56,073)

TOTAL TRANSFERS $ 923,797

CHANGE IN NET ASSETS $ 867,724

END OF YEAR $ 15,611,062

FINANCIAL STATEMENT AND ACCOUNTING PROCESS DESCRIPTIONS AND INTERNAL CONTROL

FINANCIAL STATEMENT AND ACCOUNTING PROCESS DESCRIPTIONS AND INTERNAL CONTROL

• Cash and cash equivalents

Deposits with financial institutions are classified into three categories.

Cash Control Procedures

FINANCIAL STATEMENT AND ACCOUNTING PROCESS DESCRIPTIONS AND INTERNAL CONTROL

End shift / day

Petty cash may not be used to cash personal or payroll checks.

Investment Process Description

FINANCIAL STATEMENT AND ACCOUNTING PROCESS DESCRIPTIONS AND INTERNAL CONTROL

Debt Issuance Process Description

• General obligation bonds

Debt Issuance Procedures

FINANCIAL STATEMENT AND ACCOUNTING PROCESS DESCRIPTIONS AND INTERNAL CONTROL

Description of the Revenue Process

Credit Card Receipts

Administration Office - Property and Replacement Taxes

FINANCIAL STATEMENT AND ACCOUNTING PROCESS DESCRIPTIONS AND INTERNAL CONTROL

General Gift Certificates Donations for theatre ad books

Pool Coupons – Adult, Child, Senior, Family, Camp

FINANCIAL STATEMENT AND ACCOUNTING PROCESS DESCRIPTIONS AND INTERNAL CONTROL

Weekdays (Open-Noon), (Noon-3pm), (3pm-6pm), (6pm-Close)

Payroll Process Description

Description of the Payroll Process

Payroll Check Issuance Process

FINANCIAL STATEMENT AND ACCOUNTING PROCESS DESCRIPTIONS AND INTERNAL CONTROL

Non-Salary Process Description

FINANCIAL STATEMENT AND ACCOUNTING PROCESS DESCRIPTIONS AND INTERNAL CONTROL

FINANCIAL STATEMENT AND ACCOUNTING PROCESS DESCRIPTIONS AND INTERNAL CONTROL

Procurement Card Program

FINANCIAL STATEMENT AND ACCOUNTING PROCESS DESCRIPTIONS AND INTERNAL CONTROL

Acceptable MasterCard Purchase Card Purchases

Unacceptable MasterCard Purchase Card Purchases

FINANCIAL STATEMENT AND ACCOUNTING PROCESS DESCRIPTIONS AND INTERNAL CONTROL