Method of Recognizing Revenues

THE CHIEF EXECUTIVE OFFICER RECOMMENDS:

That the Chicago Board of Education (‘Board’) rescind Board Report 86-0122-RS3 Resolution Authorizing Change in the Method of Recognizing Property Tax Revenues and Adopt a New Policy for Method of Recognizing Revenues.

PURPOSE:

The rationale for rescinding and adopting the new policy is to clarify language adopted in the 1986 Resolution regarding the recognition period of revenues for accounting purposes. This policy preserves the ability of the Chief Financial Officer to recognize revenues in accordance with generally accepted accounting principles and in a manner consistent with the regulatory, legal, and economic frameworks in which revenues are estimated for the budget process and financial plan. Finally, the policy ensures the Chief Financial Officer maintains a revenue recognition policy that is consistent with professional accounting standards and serves the financial interest of the Board.

POLICY TEXT:

1. The Chief Financial Officer must maintain for external financial reporting purposes a revenue recognition policy that is in accordance with generally accepted accounting principles (GAAP) and is consistent with the regulatory, legal, and economic framework in which revenues are estimated for the budget process and financial plan.
2. This Policy shall be effective immediately upon its adoption.