Carol Stream fire district revises capital fund rules

It would be hard to make the case that a million-dollar fire truck and the purchase of much less expensive office supplies should be paid for out of the same fund.

But for years, depending on whom you ask, it appears the Carol Stream Fire Protection District might have done just that.

Now Chief Rick Kolomay says the district has adopted a new policy establishing a $10,000 minimum expenditure for any item purchased with money from its capital fund. At least one trustee said he hopes the change helps the district return to more accurate accounting approaches.

Trustee Jim Panapoulos said Tuesday that, after repeated inquiries, he has yet to receive an itemized list of exactly what the district has paid for out of its capital expense fund. Panapoulos said the list could help explain recently discovered inaccuracies in accounting and could help make fund balances more accurate.

"I think in the past couple of chiefs, I don't think they understood the accounting process," Panapoulos said. "This chief and the deputy have a good handle on what is considered a capital expense."

The new policy prohibits the district from using its capital fund to pay for any equipment costing less than $10,000, any buildings costing less than $100,000, or any land costing less than $200,000.

The policy also establishes life-expectancy requirements of any purchased items.

Day-to-day expenses now will come out of the operating expense fund.

Recently hired Comptroller Jim Turi devised the policy at the request of the district's auditors. He said the policy is common among taxing bodies.

Kolomay said the district had a similar policy indicating any asset valued at $4,500 or more had to be placed on a depreciation schedule but the new policy will specifically address the capital fund expenses.

He downplayed the effect not having such a policy had on the district's budget woes, which recently forced him to propose many cuts for next year.

"There was a plan in the budget of what would come out of the capital fund," he said. "But our old policy didn't govern how much it had to be. We now have that in place."

He said nothing improper occurred and disputed Panapoulos' claim that he had not given him an itemized list of expenses.

"It was budgeted and planned for but on the recommendations from auditors, we have to take those expenses and put them in operating," Kolomay said. "Nothing has been done wrong."