McLean County government is committed to delivering public service at the highest level, while minimizing the use of taxpayer resources. To achieve this objective, McLean County has incorporated strong, goal-oriented financial policies to incorporate into all its operations. The purpose of the McLean County's Financial Management and Internal Controls Ordinance is to establish guidelines for control of the administration and implementation of the County's funds in accordance with the County's goals and objectives, to properly safeguard the assets of the County, to allow for sound financial decision-making, and to ensure the accuracy of the County's financial reports.
[Adopted 12-12-2024]
A.
The McLean County Board is responsible for the enactment of financial policies, the adoption of an annual budget and levy, the evaluation of claims made on County funds, and the issuance of bonds to provide funds for acquisition or construction of capital projects. Under Chapter 5 of the McLean County Code, the County Board appoints and delegates portions of its financial and budgetary authority to the County Administrator.
B.
The McLean County Treasurer is responsible for collecting, receiving, safekeeping and investment of all revenues and other public funds of the County, and the disbursement of all such funds. Training and continuing education of designated financial staff will be required to maintain certifications and skill.
C.
The McLean County Auditor is responsible for auditing all claims against the County and to recommend to the County Board the payment or rejection of all claims presented, to provide statistical and financial information on County operations, to approve orders for supplies issued by the various County officers, to maintain a file of all contracts entered into by the County and all authorized County officers, to maintain a continuous internal audit of the operations and financial records of the County officers, to audit the inventory of all real and personal property owned by the County, to audit the documentation, records, and bases for the amounts billed to the County, to be the general accountant of the County, and to devise and install a system of financial records in the offices and divisions of the County.
A.
Accounting methods employed by the County shall, at a minimum, satisfy such requirements as may be prescribed by federal or state laws, regulations, or guidelines. Additional accounting methods shall be employed to satisfy applicable government accounting standards promulgated by such competent authoritative sources as the Governmental Accounting Standards Board (GASB) and Financial Accounting Standards Board (FASB), where applicable.
B.
The County's fiscal year shall be January 1 through December 31.
A.
Revenue sources. Practical planning requires understanding the revenue streams that fund County operations. County revenue policies aim to achieve financial resiliency and minimize or eliminate service disruptions caused by revenue shortfalls. The County requires a diversity of revenue sources to better manage fluctuations in individual revenue sources related to economic conditions. The County will conduct an annual review of its projected revenue streams in conjunction with the executive budget recommendation. This aims to enhance revenue diversity to the extent allowed by law, while ensuring that taxes levied do not unduly burden County residents or businesses or lead to adverse economic effects when measured against the associated public services provided.
(1)
The County will strive to maintain diversified and stable revenue sources to protect it from unforeseen short-run fluctuations in any one revenue source.
(2)
Annually, and in conjunction with the expenditure projections, the County will prepare revenue projections for the ensuing year using an objective, analytical process.
(3)
The County charges user fees for items and services. Every effort shall be made to identify and establish appropriate rates for public services, as authorized by state law. The County shall review all fees assessed in its annual budget preparation process to determine the appropriate rate of fees for services and recommend any proposed changes to be implemented in the ensuing budget year.
(4)
The County defines one-time revenues as those that cannot be relied on in future budget periods. To the extent feasible, one-time revenues will be applied toward one-time expenditures and will not be used to fund ongoing programs.
(5)
When dealing with unpredictable revenues, revenue estimates must be made in a conservative manner, and accompanied by a commitment to reduce expenditures mid-year if the updated revenue estimates show revenues not meeting projections.
B.
Grants.
(1)
Each County department applies and implements grant programs through written and executed grant agreements outlined by each granting agency and based on agreed compensation, performance, regulations, and guidelines. The County will only seek out grants that are consistent with its public mission and stated priorities and when the cost of administering the grant is at least fully offset by the funds received.
(2)
The McLean County Board supports efforts to pursue grant revenues to provide or enhance County-mandated and non-mandated services and capital needs. Activities which are, or will be, recurring shall be initiated with grant funds only if one of the following conditions are met:
(a)
The activity or service can be terminated in the event the grant revenues are discontinued; or
(b)
The activity could be assumed by the County's General Fund, or another identified fund. Departments are encouraged to seek additional sources of revenue to support the services prior to expiration of grant funding.
A.
General policy.
(1)
The McLean County Board is committed to producing a balanced budget in a timely fashion.
(2)
The County recognizes the importance of forecasting revenues and expenditures to clearly illustrate the level of funding available for services and investment in capital improvement and equipment. The County will use a practical forecasting strategy to project revenues and expenditures as accurately as possible.
B.
Requirements.
(1)
The McLean County Board will adopt a combined annual appropriation and budget ordinance, which sets forth the revenues and expenditures deemed necessary to meet and defray all legal liabilities and expenditures to be incurred by and against McLean County in the upcoming year.
(a)
In May of each year, the County Board will establish the annual budget policy to be utilized in the development of the budget for the next fiscal year.
(c)
The final budget will be approved and adopted by the McLean County Board with the intention of adopting a balanced budget (where total revenues equal total expenses) by December 1.
(2)
The budget document is prepared for all budgetary funds using the modified accrual basis.
(3)
All County funds, except for fiduciary funds, are budgeted in the Annual Budget that is approved by the County Board. Budgeted amounts are considered the maximum authorization to incur obligations and not a mandate to spend.
(4)
The County is committed to producing a balanced budget in a timely manner. A budget is balanced when total expenses do not exceed total revenues and appropriated fund balance within an individual fund.
(5)
The budgets for all governmental funds and proprietary funds are presented on a modified accrual basis recognizing revenues when they become available and measurable; and expenditures when the liability is incurred. McLean County's accrual period is 90 days after the close of the fiscal year.
(6)
(7)
The budget may be amended through an emergency appropriation or budget transfer which requires a 2/3 majority vote (14) of the County Board. Department heads may authorize transfers between non-personnel budget lines in their department budget as long as they do not exceed the total combined appropriation for non-personnel categories; and transfers between personnel lines as long as they do not exceed the total combined appropriation for personnel categories.
(8)
Upon recommendation of the County Administrator, a contingency line-item account, not to exceed 5% of the total appropriations in each fund, may be established in each fund to cover emergencies and unanticipated expenditures. Contingency funds may be utilized following Subsection B(7) listed above.
C.
Review. The McLean County Board shall review the financial policies contained herein and any potential new policies annually during the budget process to ensure continued relevance and to identify any gaps that should be addressed by new policies.
[Amended 1-15-2026]
A.
Purpose. To provide a clear, consistent, and controlled policy that applies to all County offices and departments for the processing and payment of all county disbursements made from County funds (e.g., accounts payable, reimbursements, electronic funds transfers) regardless of funding source (e.g., general fund, special revenue, capital) in order to:
B.
Scope. This policy applies to all County departments and to all disbursements made from County funds, regardless of funding source (e.g., general fund, grants, special revenue, capital).
C. APPROVER/AUTHORIZED SIGNER DISBURSEMENT SUPPORTING DOCUMENTATION VOUCHER/INVOICE
Definitions.
An individual assigned by policy or delegation with authority to approve disbursements.
Any payment from county funds (e.g., check, EFT, direct deposit, wire).
Documents that substantiate the validity, amount, payee, purpose, and budgetary availability of the disbursement (e.g., invoice, purchase order, packing slip, contract, travel expense form).
A document requesting payment, with supporting documentation (e.g., invoice, purchase order, receiving report, contract).
D.
General policy.
(1)
All disbursement activity including vendor voucher (invoice) entry and approvals must be made in the ERP System.
(2)
No disbursement shall be made unless it is supported by an approved voucher/invoice and all required supporting documentation.
(3)
Disbursements must comply with county budgeting policies - there must be an available appropriation in the relevant account before payment.
(4)
All disbursement activity should be recorded accurately and timely. All vouchers (invoices) are to be entered into the ERP, when practicable, on a weekly basis to minimize the possibility of late payment fees and to record monthly expenditures promptly.
(5)
All disbursements should be reviewed for reasonableness, legality, and compliance with procurement and contract policies.
(6)
All vouchers (invoices) must be approved within five business days of ERP hub notification.
(7)
Separation of duties shall be maintained: initiation, approval, and execution of payment should involve different individuals.
(8)
Check numbers are generated by the ERP system when payments are processed. Control over check numbering is maintained within the ERP system. Voided checks must be retained and properly documented.
(9)
Electronic funds transfers (EFT), ACH, or wire payments are allowed but must follow the same approval, documentation, and controls as check disbursements.
(10)
Blank check stock, signature files, and access to bank accounts must be secured and access restricted to authorized personnel.
(11)
The county shall reconcile bank statements monthly and review outstanding checks/unclaimed payments. When operational events, data delays, or circumstances exist that prevent monthly reconciliation, the delay should be confirmed by the department head. The delay shall be rectified as soon as time permits. Departments shall adhere to the Public Fund Accounting Act 30 ILCS 20/1 when submitting all deposits, receipts, and supporting documentation to the Treasurer.
E.
Procedures.
(1)
Initiation and voucher entry.
(2)
Approval/review.
(a)
The department approver receives notification in the ERP hub and reviews the voucher (invoice) for accuracy, completeness, compliance with budget appropriateness of charges, alignment with procurement or contract policies, and proper coding (chart of accounts) prior to approval.
(b)
Approvers must not approve vouchers (invoices) for themselves.
(3)
Payment execution.
(a)
Once approved by the department, the voucher (invoice) is routed through the ERP system to the County Auditor. The County Auditor shall review and approve the voucher (invoice) within the ERP system workflow within five business days of receiving the ERP hub approval notification.
(b)
If the voucher (invoice) is not approved by the County Auditor, it is routed through the ERP system back to the department approver for correction(s) or clarification within five business days.
(c)
If voucher (invoice) cannot be resolved and advanced by County Auditor within 15 business days, it is forwarded to the department's oversight committee by the Department Head.
(d)
Upon Oversight Committee approval, the County Auditor shall advance the invoice in the ERP system to the Accounts Payable Department.
(e)
Accounts Payable staff receive ERP hub approval notification and review for accuracy and complete documentation before the disbursement is scheduled for payment (check run, EFT, or wire). Final review and any necessary adjustments may be made by the Accounts Payable staff; if adjustments are required, the department will be notified accordingly.
(f)
The Treasurer's Office will process Accounts Payable on a timely and periodic basis.
(g)
Payment methods and timing (daily, weekly, etc.) are determined by the County Treasurer's Office.
(h)
The Accounts Payable Specialists, Treasurer or their designee will review the accounts payable batch and corresponding invoices prior to checks being generated.
(i)
Checks are printed, signed (by authorized signers), and mailed or delivered. EFTs/ACH/wire payments are initiated according to bank/treasury procedures.
(j)
All payments are recorded in the general ledger via the ERP.
F.
Voided checks.
(1)
Voided checks are to be clearly marked "Voided" and returned by the Department Head to the Treasurer's Office promptly. Treasurer's Office will process all voided checks and reissue payment as appropriate.
(2)
Cancelled checks and bank statements are to be maintained at the County Treasurer's Office with the exception of individual bank accounts allowed through state statutes or administrative code:
(3)
Refunds or rebates issued to the County will be submitted to County Treasurer's Office and credited against the original expense line in the current fiscal year.
G.
Emergency payments. Periodically, the situation may arise where a check needs to be generated and issued immediately. The department head must provide all required information and an explanation of exigent circumstances and submit to the Auditor and Treasurer. The Treasurer will approve for disbursement. In the event that the Auditor or Treasurer is unavailable, the County Administrator's approval is required.
H.
A prepaid credit with the County's credit card provider will be maintained as the Treasurer deems necessary to ensure services are not disrupted, payments are not late, and vendor relations are not damaged.
I.
All disbursements for the procurement of goods or services must also comply with Chapter 116 of the McLean County Code, the County Procurement Ordinance, in addition to all other laws, rules, and regulations that may apply.
J.
The Treasurer's Office shall approve non-vendor-related transactions for payroll, transfers, and working cash disbursements for departments with seasonal operations.
K.
Each month a list of monthly disbursements will be prepared for review and approval by the County Board.
L.
Roles and responsibilities.
(1)
Departments/requestors: Initiate vouchers promptly, ensure accuracy and completeness of supporting documentation. If a new vendor needs to be created, department is responsible for verifying and sending W9 information to Accounts Payable prior to initiating voucher for payment.
(2)
Approvers/managers: Review and approve disbursements within their delegated authority; ensure spending is appropriate and budgeted.
(3)
County Auditor: Reviews and approves vouchers (invoices) for advancement to Accounts Payable Department, ensures compliance, reviews adherence to policy, recommend improvements, and prepares list of disbursements to the County Board.
(4)
Accounts payable: Enter vouchers into the ERP, schedule payments, monitor check runs and EFTs, safeguard blank stock, liaise with banks, create new vendor files, maintain vendor files.
(5)
County Treasurer: Oversee disbursement processes, maintain internal controls, ensure compliance.
M.
Policy violations.
(1)
Noncompliance with this policy, including but not limited to unauthorized disbursement or bypassing approval may subject the responsible individuals to disciplinary actions, up to termination or legal consequences, depending on severity.
(2)
Suspected policy violations or irregularities should be reported to County Administration or State's Attorney Civil Division.
A.
The County's salary administration guidelines will be followed for departments whose personnel budgets are subject to the County Board's personnel appropriation procedures.
B.
The County Administrator's Office is responsible for computing salaries and fringe benefits costs for all departments.
C.
Increases for non-bargaining employees will be recommended by the County Administrator as part of the budget cycle and forwarded to the County Board for inclusion in the annual budget.
The following policies establish the framework for the County's overall capital asset planning and management.
A.
The County's Capital Improvement Plan (CIP) sets forth the plan for the design, construction, and renovation of safe, functional, and efficient buildings and building systems in order to deliver cost-effective County services to the public.
B.
The County strives to maintain all assets at a level adequate to protect the County's capital interest and to minimize future maintenance and replacement costs.
C.
Through the annual budget process, funding for the fiscal year projects in the County's Capital Improvement Plan will be identified. If the County is unable to provide appropriate funding for any scheduled projects, this will be documented in the Capital Improvement Plan.
D.
The Auditor maintains a fixed asset inventory of furniture, equipment, buildings, and improvements with a value greater than $10,000 and a useful life of one year or more.
The County will prudently manage the issuance of debt to ensure that debt does not unduly burden County taxpayers or pose a risk to the County's credit ratings and overall credit worthiness. The McLean County Public Building Commission (PBC), formed by the County Board on September 12, 1967, has the authority to enter into lease agreements for buildings, properties and other facilities utilized by McLean County. The PBC has the further authority to issue revenue bonds necessary to finance the acquisition, construction, or renovation of a county facility.
A.
When applicable, the County shall review its outstanding debt for the purpose of determining if the financial marketplace will afford the County the opportunity to refund an issue and lessen its debt service costs.
B.
The County will confine long-term borrowing to capital improvements or projects that cannot be financed from current revenues.
C.
When the County finances capital projects by issuing bonds through the PBC, it will pay back the bonds within a period not to exceed the useful life of the project.
D.
The County will not use long-term debt for current operations.
E.
The County will maintain good communications with bond rating agencies regarding its financial condition. The County will follow a policy of full disclosure on every financial report and borrowing prospectus.
The County will comply with continuing disclosure requirements established by the Securities and Exchange Commission Rule 12c2-12 and the continuing disclosure agreements required by its bond issues through the PBC. The County may engage the services of a dissemination agent to assist with its continuing disclosure obligations.