2012 Budget - South Suburban Parks and Recreation

South Suburban Park and Recreation District
Summary of Significant Financial Policies
Pension Plan
The salaries employees of the District participate in a Money Purchase Pension Plan which is
a defined contribution plan established by the District and is maintained and administered by
Principal Mutual Life. Benefits depend solely on amounts contributed to the plan plus
investment earnings. Employees become plan members after six months of employment.
Under this plan, 6% of the plan members’ compensation is remitted to the Plan Administrator
by the District. The District’s contributions, plus earnings, become vested after three years
of participation in the plan. District contributions for plan members who leave employment
before they are fully vested are used to reduce the District’s current period contribution
requirement. There is no liability for benefits under the plan beyond the District’s payments.
Plan provisions and contribution requirements are established and may be amended by the
District’s Board of Directors.
The District also has a deferred compensation plan created in accordance with Internal
Revenue Code Section 457. This plan is administered by Principal Mutual Life.
Participation in the plan is optional for all employees. The plan allows the employees to
defer a portion of their salary until future years.
Financial Reporting
The District uses Microsoft Dynamics GP for accounting and an add-on package called XL
Report Writer for financial reporting. The finance department sends out monthly financial
reports to staff, managers, and the Board of Directors. These are very useful for analyzing
the performance of the District’s programs and facilities on a monthly basis.
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