Illinois Administrative Code
Title 89 - SOCIAL SERVICES
Part 509 - FISCAL/ADMINISTRATIVE RECORDKEEPING AND REQUIREMENTS
Section 509.40 - Accounting Requirements

a) Each agency shall establish and maintain an accounting system in accordance with generally accepted accounting principles (GAAP).

b) Accounting transactions shall be properly classified, adequately documented and recorded in appropriate books of original entry (journals), and posted to general ledgers on a monthly basis.

c) For programs funded by the Department, expenses shall be recorded by specific program. Expenses for all other programs may be booked on total. Expenses that cannot appropriately be charged to one or more specific programs shall be allocated on a reasonable basis to the various benefitting programs, both Department-funded programs and programs funded from other sources. It will be the agency's responsibility to document its program expense allocation methodology and rationale.

d) All fiscal records shall be maintained for at least five years after the end of the fiscal year to which they relate. If need for them still remains, because of unresolved audit issues, litigation or for similar reasons, related records must be retained until the matters are completely resolved. Failure to maintain adequate records to document the expenditure of DHS funds creates a presumption in favor of the Department for recovery of the funds.

e) All depreciation shall be computed on the straight line basis. The agency shall clearly identify in its depreciation schedule any capital assets of $500 or more acquired with Department grant funds.

f) The Department may establish additional accounting requirements for specific grants or programs. Agencies receiving such grants or receiving funds for such programs shall comply with those special requirements.