Accounting Policies Overview

Accounting Policies Overview

Fiscal & Administrative Review Assistance for IDHS Providers

Grantees of the State of Illinois must have accounting policies and procedures that are documented, accurate, and detailed. This is critical to the successful implementation of a grant program.

The following policies must be developed, and available for IDHS review, for your organization:

Maintenance of Accounting Records, Soft-ware Backup and Off-Site Storage Policy Credit Card Use Policy
Property Control Policy Purchase Policy
Procurement Policy Travel Policy
Capitalization Policy Disposition of Grant Funded Assets Policy
Depreciation Policy Interest on Grant Funds Policy
Record Retention Policy Cost Principles Policy
Cash Management (Disbursement) Policy Payroll/Payroll Tax Policy
Cash Receipts Policy Personal Services Compensation Policy
Petty Cash Policy Fringe Benefit Policy

Note - these may be stand-alone or bundled, but easily accessible to personnel.

Why does my organization need accounting policies and procedures?

  1. Increased visibility into grant operations with the ability to accurately track, segregate, and document grant funds
  2. Strengthened internal controls to safeguard against fraud, waste, and abuse of grant funds
  3. Maintain accountability and consistency in grant reporting
  4. Clear policies that are documented and available to your organization's team members create a roadmap for the effective use of grant funds

Grantee reminders

  1. Policies should be memorialized in writing and approved by your organization's board or governing body
  2. Policies should be easily accessible to organization personnel such as in an employee manual, grants manual, or other guiding documents
  3. Personnel should be trained on accounting policies during onboarding and receive an annual refresher training with documentation of attendees