Thanks to Dist. 15 for openness

To the editor: Thanks needs to be given to the Board of Education in District 15 for the hard work on the issue of transparency and clearing up the financial picture in Palatine Township School district. All members of the board of education should be commended for agreeing to this new openness, especially members of the communication committee, Tim Millar and Sue Quinn.

Community stakeholders appreciate clarification of the complex topic of public school finance. In the future even more transparency is desired.

During last month's District 15 communication committee meeting it came to light that District 15, with its roughly $150 million budget, was having problems with aspects of "bookkeeping." The annual report to all stakeholders, published on the ISBE Web site, is reported and required by school code to be completed using the accrual method of accounting. Accrual accounting is the most reliable and accurate method of financial reporting, giving the clearest snapshot of district spending. Accrual accounting is the IRS required method of financial accounting for most private sector businesses.

While this accrual method is only done at the end of the fiscal year; the daily District 15 (checkbook) calculations are being done using another accounting method, cash basis. Why?

Using one standard method for all bookkeeping purposes (accrual accounting) will make budgeting decisions crystal clear and prevent deficit spending.

This leaves an important question. Why is cash basis accounting used by a Malcolm Baldridge Award-winning school district, which should have its books in perfect order and use accrual accounting?

Lisa Cadwallader Neal

Rolling Meadows