RIVER RIDGE COMMUNITY UNIT SCHOOL DISTRICT NO. 210 Hanover, Illinois

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1 RIVER RIDGE COMMUNITY UNIT SCHOOL DISTRICT NO. 210 Hanover, Illinois Annual Financial Report June 30, 2017

2 * * * * * * BOARD OF EDUCATION G. Allen Crist, President, to April 2021 Raymie Diestelmeier, Vice-President, to April 2019 Barbara Schaible, Secretary, to April 2019 Don McLane, Member, to April 2019 Amy Finn, Member, to April 2021 Diane Haring, Member, to April 2021 Lisa Walters, Member, to April 2021 * * * * * * SECRETARY Barbara Schaible * * * * * * TREASURER Gloria Schleicher * * * * * * SUPERINTENDENT Brad Albrecht * * * * * *

3 Annual Financial Report June 30, 2017 Table of Contents Page Independent Auditor s Report 1-3 Independent Auditor s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards 4-5 Financial Statements Statements of Assets and Liabilities Arising From Cash Transactions 6 Statements of Revenue Received, Expenditures Disbursed, Other Sources (Uses) and Changes in Fund Balances 7 Educational Fund Statement of Revenue Received Actual and Budget 8-11 Statement of Expenditures Disbursed Actual and Budget Operations and Maintenance Fund Statement of Revenue Received Actual and Budget Statement of Expenditures Disbursed Actual and Budget 22 Debt Services Fund Statement of Revenue Received Actual and Budget 23 Statement of Expenditures Disbursed Actual and Budget 24 Transportation Fund Statement of Revenue Received Actual and Budget 25 Statement of Expenditures Disbursed Actual and Budget 26 Municipal Retirement/Social Security Fund Statement of Revenue Received Actual and Budget 27 Statement of Expenditures Disbursed Actual and Budget Capital Projects Fund Statement of Revenue Received Actual and Budget 31 Statement of Expenditures Disbursed Actual and Budget 32 Tort Fund Statement of Revenue Received Actual and Budget 33 Statement of Expenditures Disbursed Actual and Budget 34 Fire Prevention and Safety Fund Statement of Revenue Received Actual and Budget 35 Statement of Expenditures Disbursed Actual and Budget 36 Notes to Financial Statements 37-64

4 Annual Financial Report June 30, 2017 Table of Contents Other Information Teachers Retirement System of the State of Illinois Schedule of the Employer s Proportionate Share of Net Pension Liability 65 Schedule of Employer Contributions 65 Illinois Municipal Retirement Fund Schedule of Changes in Net Pension Liability and Related Ratios 66 Schedule of Contributions 67 Notes to Other Information Supplemental Information Agency Funds Activity Funds and Trust Funds Statement of Assets and Liabilities Arising From Cash Transactions 70 Activity Fund Statement of Operating Revenues Received and Expenditures Disbursed 71 Schedule of Restricted Local Tax Levies Analysis of Changes in Cash Basis Fund Balance 72 Schedule of Assessed Valuations, Property Tax Rates, Extensions and Collections 73 Ten Year Statistics Assessed Valuations, Tax Rates and Extensions 74 Schedule of Average Daily Attendance, Operating Expense Per Pupil and Total Operating Expense 75 Fund Balances Adjusted for Tax Receipts 76

5 BENNING GROUP, LLC CERTIFIED PUBLIC ACCOUNTANTS Independent Auditor s Report Board of Education River Ridge Community Unit School District No. 210 Jo Daviess County, Illinois Report on the Financial Statements We have audited the accompanying financial statements of River Ridge Community Unit School District No. 210, as of and for the fiscal year ended June 30, 2017, and the related notes to the financial statements, which collectively comprise the District s financial statements as listed in the table of contents. Management s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with the financial reporting provisions of the Illinois State Board of Education. Management is also responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. 50 W. Douglas Street, Suite Weaver Road, Suite th Street Freeport, Illinois Rockford, Illinois Monroe, Wisconsin (815) (815) (608) Fax (815) Fax (815) Fax (608)

6 Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles As described more fully in Note 1, the financial statements are prepared by River Ridge Community Unit School District No. 210 on the basis of financial reporting prescribed or permitted by the Illinois State Board of Education, which is a basis of accounting other than accounting principles generally accepted in the United States of America, to comply with the requirements of the Illinois State Board of Education. The effects on the financial statements of the variances between the regulatory basis of accounting described in Note 1 and accounting principles generally accepted in the United States of America, although not reasonably determinable, are presumed to be material. Adverse Opinion on U.S. Generally Accepted Accounting Principles In our opinion, because of the significance of the matter discussed in the Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles paragraph, the financial statements referred to in the first paragraph do not present fairly, in accordance with accounting principles generally accepted in the United States of America, the financial position of River Ridge Community Unit School District No. 210, as of June 30, 2017, or the changes in its financial position for the year then ended. Unmodified Opinion on Regulatory Basis of Accounting In our opinion, the financial statements referred to in the first paragraph present fairly, in all material respects, the assets and liabilities arising from cash transactions of River Ridge Community Unit School District No. 210 as of June 30, 2017, and the revenues it received and expenditures it paid, and budgetary results for the year then ended, in accordance with the financial reporting provisions of the Illinois State Board of Education as described in Note 1. Other Matters Other Information Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise River Ridge Community Unit School District No. 210 s financial statements. The information listed in the table of contents as Other Information, which is the responsibility of management, is presented for the purpose of additional analysis and is not a required part of the financial statements. Such information has not been subjected to the auditing procedures applied in the audit of the financial statements, and accordingly, we do not express an opinion or provide any assurance on it. Supplemental Information Our audit was conducted for the purpose of forming an opinion on the financial statements taken as a whole. The schedules listed in the table of contents as Supplemental Information are presented for the purposes of additional analysis and are not a required part of the financial statements of River Ridge Community Unit School District No Such information is the responsibility of management and has been derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the BR-1 2

7 auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements taken as a whole on the basis of accounting as described in Note 1. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated October 30, 2017, on our consideration of River Ridge Community Unit School District No. 210 s internal control over financial reporting and our tests of its compliance with certain provision of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering River Ridge Community Unit School District No. 210 s internal control over compliance. Freeport, Illinois October 30, 2017 BR-1 3

8 BENNING GROUP, LLC CERTIFIED PUBLIC ACCOUNTANTS Independent Auditor s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards Board of Education River Ridge Community Unit School District No. 210 Jo Daviess County, Illinois We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of River Ridge Community Unit School District No. 210 as of and for the year ended June 30, 2017, and the related notes to the financial statements, which collectively comprise River Ridge Community Unit School District No. 210 s financial statements, and have issued our report thereon dated October 30, Our opinion was adverse because the financial statements are not prepared in accordance with generally accepted accounting principles. However, the financial statements were found to be fairly stated, on the cash basis of accounting, which is a comprehensive basis of accounting other than generally accepted accounting principles, in accordance with regulatory reporting requirements established by the Illinois State Board of Education. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered River Ridge Community Unit School District No. 210 s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District s internal control. Accordingly, we do not express an opinion on the effectiveness of the District s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the District s financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 50 W. Douglas Street, Suite Weaver Road, Suite th Street Freeport, Illinois Rockford, Illinois Monroe, Wisconsin (815) (815) (608) Fax (815) Fax (815) Fax (608)

9 However, we noted certain other matters involving the internal control over financial reporting that we reported to management of River Ridge Community Unit School District No. 210 in a separate letter dated October 30, Compliance and Other Matters As part of obtaining reasonable assurance about whether River Ridge Community Unit School District No. 210 s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Freeport, Illinois October 30, 2017 SR-2.1/BR-2.1 5

10 Total current assets 5,619,728 2,445,168-1,856, , , ,902 67, , Capital Assets Land ,000 - Building & building improvements ,582,584 - Site improvements & infrastructure ,660,843 - Capitalized equipment ,598,227 - Current Liabilities $ $ - $ - Due to activity fund organizations $ - $ - $ - $ - $ - $ - $ - $ - $ - 652,578 Total current liabilities , Long-term Liabilities Long-term debt payable Total long-term liabilities Total liabilities , Reserved fund balances , , Unreserved fund balances 5,619,728 2,445,168-1,856, , ,902 67, Investments in general fixed assets ,951,654 - Total fund balances 5,619,728 2,445,168-1,856, , , ,902 67,535-12,951,654 - Total liabilities and fund balances $ 5,619,728 $ 2,445,168 $ - $ 1,856,744 $ 191,308 $ 400,169 $ - $ 160,902 $ 67,535 $ 652,578 $ 12,951,654 $ - RIVER RIDGE COMMUNITY UNIT SCHOOL DISTRICT NO. 210 Statements of Assets and Liabilities Arising from Cash Transactions June 30, 2017 ASSETS Municipal Retirement/ Fire Account Groups General Operations & Debt Transpor- Social Capital Working Prevention Agency General Long-Term Educational Maintenance Services tation Security Projects Cash Tort & Safety Funds Fixed Assets Debt Current Assets $ $ $ Cash $ 5,619,728 $ 2,445,168 $ - $ 1,856,744 $ 191,308 $ 400,169 $ - $ 160,902 $ 67,535 87, Investments , Total assets $ 5,619,728 $ 2,445,168 $ - $ 1,856,744 $ 191,308 $ 400,169 $ - $ 160,902 $ 67,535 $ 652,578 $ 12,951,654 $ - LIABILITIES AND FUND BALANCES LIABILITIES FUND BALANCES See accompanying notes to financial statements.

11 Total direct revenue 6,167,865 1,049, , , , ,090 2,412 Revenue for on-behalf payments 1,545, Total revenue $ 7,713,253 $ 1,049,257 $ - $ 446,656 $ 273,115 $ 288,136 $ - $ 112,090 $ 2,412 Total direct expenditures 6,172, , , ,622 15,202-83,110 - Expenditures for on-behalf payments 1,545, Total expenditures 7,717, , , ,622 15,202-83,110 - Excess of direct revenue over $ $ 2,412 (under) direct expenditures $ (4,338) $ 383,034 $ - $ 87,358 $ 6,493 $ 272,934 $ - 28,980 Total other sources (uses) of funds Excess of revenues and other sources of funds over (under) expenditures and other uses of funds (4,338) 383,034-87,358 6, ,934-28,980 2,412 FUND BALANCES - July 1, ,624,066 2,062,134-1,769, , , ,922 65,123 RIVER RIDGE COMMUNITY UNIT SCHOOL DISTRICT NO. 210 Statements of Revenue Received, Expenditures Disbursed, Other Sources (Uses) and Changes in Fund Balances Year ended June 30, 2017 $ $ Municipal Fire Operations & Debt Retirement/ Capital Working Prevention Educational Maintenance Services Transportation Social Security Projects Cash Tort & Safety REVENUE Local sources $ 5,133,315 $ 1,049,257 $ - $ 390,121 $ 273,115 $ 288,136 $ - 112,090 2,412 State sources 495, , Federal sources 539, EXPENDITURES Instruction $ 4,348,485 $ - $ - $ - $ 99,695 $ - $ Support services 1,378, , , ,927 15,202-83,110 - Community services Payments to other districts & gov't units 444, Debt service OTHER SOURCES (USES) OF FUNDS Transfer among funds $ - $ - $ - $ - $ - $ - $ - - Other sources(uses) not classified elsewhere FUND BALANCES - June 30, 2017 $ 5,619,728 $ 2,445,168 $ - $ 1,856,744 $ 191,308 $ 400,169 $ - $ 160,902 $ 67,535 See accompanying notes to financial statements.

12 Educational Fund Statement of Revenue Received - Actual and Budget Year ended June 30, 2017 Actual over Actual Budget (under) Budget REVENUE FROM LOCAL SOURCES Ad valorem taxes levied by local education agency: Designated purposes levies $ 4,835,383 $ 4,793,865 $ 41,518 Special education purposes levy 99,886 99, Total ad valorem taxes levied by district 4,935,269 4,893,739 41,530 Payments in lieu of taxes: Payments from local housing authority - 1,530 (1,530) Total payments in lieu of taxes - 1,530 (1,530) Earnings on investments: Interest on investments 29,063 30,800 (1,737) Total earnings on investments 29,063 30,800 (1,737) Food service: Sales to pupils - lunch 75,074 76,500 (1,426) Sales to pupils - breakfast 6,014 5, Sales to pupils - a la carte 9,983 12,500 (2,517) Sales to pupils - other 7,353 7,600 (247) Sales to adults 9,037 9,200 (163) Other food service 20,928 22,000 (1,072) Total food service 128, ,600 (5,211) District/school activity income: Admissions - athletic 21,114 23,000 (1,886) Fees 1,071 1,300 (229) Total district/school activity income 22,185 24,300 (2,115) Textbooks: Rentals - regular textbooks 14,892 15,300 (408) Total textbook income 14,892 15,300 (408) See accompanying notes to financial statements. 8

13 Educational Fund Statement of Revenue Received - Actual and Budget Year ended June 30, 2017 Actual over Actual Budget (under) Budget REVENUE FROM LOCAL SOURCES (CONTINUED) Other revenue from local sources: Contributions and donations from private sources 1,000 2,500 (1,500) Refund of prior years' expenditures (129) Drivers education fees 1,800 1,800 - Other local revenues 646 4,500 (3,854) Total other revenue from local sources 3,517 9,000 (5,483) Total revenue from local sources $ 5,133,315 $ 5,108,269 $ 25,046 FLOW-THROUGH RECEIPTS/REVENUE FROM ONE DISTRICT TO ANOTHER DISTRICT Flow through revenue from state sources $ - $ - $ - Total flow-through receipts/revenue from one district to another district $ - $ - $ - REVENUE FROM STATE SOURCES Unrestricted grants-in-aid: General state aid - Sec $ 270,819 $ 245,000 $ 25,819 Total unrestricted grants-in-aid 270, ,000 25,819 Restricted grants-in-aid: Special education Private facility tuition 8,352 10,000 (1,648) Funding for children requiring sp ed services 50,178 65,000 (14,822) Personnel 74,502 95,000 (20,498) Orphanage-individual 52,313 15,000 37,313 Total special education 185, , Career and technical education (CTE) Secondary program improvement - 2,530 (2,530) Agricultural education - 1,800 (1,800) Total career and technical education - 4,330 (4,330) See accompanying notes to financial statements. 9

14 Educational Fund Statement of Revenue Received - Actual and Budget Year ended June 30, 2017 Actual over Actual Budget (under) Budget REVENUE FROM STATE SOURCES (CONTINUED) Restricted grants-in-aid (continued): State free lunch and breakfast 746 1,600 (854) Driver education 5,679 5, Early childhood - block grant 32,468 81,000 (48,532) Other restricted revenue from state sources (325) Total restricted grants-in-aid 224, ,555 (53,317) Total revenue from state sources $ 495,057 $ 522,555 $ (27,498) REVENUE FROM FEDERAL SOURCES Restricted grants-in-aid received directly from federal gov't: Other restricted grants-in-aid received directly from federal gov't $ 40,662 $ 38,006 $ 2,656 Total other restricted grants-in-aid received directly from federal gov't 40,662 38,006 2,656 Restricted grants-in-aid received from federal government through the state: Food service National school lunch program 111, ,000 (4,167) School breakfast program 34,205 35,000 (795) Total food service 146, ,000 (4,962) Title I Low income 84,724 76,276 8,448 Total Title I 84,724 76,276 8,448 See accompanying notes to financial statements. 10

15 Educational Fund Statement of Revenue Received - Actual and Budget Year ended June 30, 2017 Actual over Actual Budget (under) Budget REVENUE FROM FEDERAL SOURCES (CONTINUED) Restricted grants-in-aid received directly from federal gov't (continued): Federal - special education Preschool flow-through 5,341 5,341 - IDEA - flow-through 96,976 95,067 1,909 IDEA - room and board 87, ,000 (62,625) Total federal - special education 189, ,408 (60,716) CTE - Perkins Other 2,583 2,583 - Total CTE - Perkins 2,583 2,583 - Title II - teacher quality 22,945 30,000 (7,055) Medicaid matching funds - administrative outreach 32,364 12,200 20,164 Medicaid matching funds - fee-for-service program 20,485 42,000 (21,515) Other restricted revenue from federal sources - 1,500 (1,500) Total revenue from federal sources $ 539,493 $ 603,973 $ (64,480) Total direct revenue $ 6,167,865 $ 6,234,797 $ (66,932) See accompanying notes to financial statements. 11

16 Educational Fund Statement of Expenditures Disbursed - Actual and Budget Year ended June 30, 2017 Actual over Actual Budget (under) Budget INSTRUCTION Regular programs: Salaries $ 2,330,064 $ 2,343,647 $ (13,583) Employee benefits 544, ,473 (6,179) Purchased services 2,890 4,400 (1,510) Supplies and materials 45,505 59,350 (13,845) Capital outlay 40,662 28,400 12,262 Other objects 1,055 1,600 (545) Total regular programs 2,964,470 2,987,870 (23,400) Pre-K programs: Salaries 90,268 90, Employee benefits 16,876 15,052 1,824 Purchased services (180) Supplies and materials 1,418 2,400 (982) Total pre-k programs 109, , Special education programs: Salaries 516, ,584 (8,771) Employee benefits 75,927 78,026 (2,099) Purchased services 1,179 9,800 (8,621) Supplies and materials 4,357 6,450 (2,093) Capital outlay Total special education programs 599, ,460 (21,303) Special education programs pre-k: Salaries 33,845 30,730 3,115 Employee benefits 6,260 5, Supplies and materials (500) Total special education programs pre-k 40,105 37,053 3,052 See accompanying notes to financial statements. 12

17 Educational Fund Statement of Expenditures Disbursed - Actual and Budget Year ended June 30, 2017 Actual over Actual Budget (under) Budget INSTRUCTION (CONTINUED) Remedial and supplemental programs: Salaries 56,650 52,950 3,700 Employee benefits 36,434 33,545 2,889 Supplies and materials (286) Total remedial and supplemental programs 93,548 87,245 6,303 CTE programs: Salaries 200, ,861 (8,278) Employee benefits 46,532 46,939 (407) Purchased services (13) Supplies and materials 13,175 16,700 (3,525) Capital outlay 8,113 8,713 (600) Total CTE programs 268, ,513 (12,823) Interscholastic programs: Salaries 133, ,530 (1,317) Employee benefits 12,010 12,117 (107) Purchased services 18,207 26,150 (7,943) Supplies and materials ,500 (20,531) Capital outlay - 10,000 (10,000) Other objects 4,825 6,000 (1,175) Total interscholastic programs 169, ,297 (41,073) Summer school programs: Salaries 3,510 3,930 (420) Employee benefits 1,734 2,256 (522) Supplies and materials (180) Total summer school programs 5,264 6,386 (1,122) See accompanying notes to financial statements. 13

18 Educational Fund Statement of Expenditures Disbursed - Actual and Budget Year ended June 30, 2017 Actual over Actual Budget (under) Budget INSTRUCTION (CONTINUED) Driver's education programs: Salaries 40,128 40,259 (131) Employee benefits 7,878 8,094 (216) Purchased services 990 3,289 (2,299) Supplies and materials 314 1,700 (1,386) Total driver's education programs 49,310 53,342 (4,032) Truant alternative & operational programs: Other objects 4,000 4,000 - Total truant alternative & operational programs 4,000 4,000 - Regular k-12 programs-private tuition Other objects 1, ,060 Total regular k-12 programs-private tuition 1, ,060 Special education programs k-12 - private tuition Other objects 43,975 78,000 (34,025) Total special education programs k-12 - private tuition 43,975 78,000 (34,025) Total instruction $ 4,348,485 $ 4,474,924 $ (126,439) SUPPORT SERVICES Support services - pupils Guidance services: Salaries $ 136,794 $ 137,244 $ (450) Employee benefits 32,768 32, Purchased services 1,825 3,000 (1,175) Supplies and materials (561) Other objects (55) Total guidance services 172, ,933 (1,862) See accompanying notes to financial statements. 14

19 Educational Fund Statement of Expenditures Disbursed - Actual and Budget Year ended June 30, 2017 Actual over Actual Budget (under) Budget SUPPORT SERVICES (CONTINUED) Support services - pupils (continued) Health services: Salaries 45,436 46,759 (1,323) Employee benefits 5,975 5,975 - Purchased services (311) Supplies and materials 1,450 1,500 (50) Capital outlay (600) Total health services 53,350 55,634 (2,284) Speech pathology and audiology services: Salaries 71,347 71,581 (234) Employee benefits 17,753 18,088 (335) Supplies and materials (500) Total speech pathology and audiology services 89,100 90,169 (1,069) Total support services - pupils $ 314,521 $ 319,736 $ (5,215) Support services - instructional staff Improvement of instruction services: Salaries $ - $ - - Purchased services 8,912 21,000 (12,088) Total improvement of instruction services 8,912 21,000 (12,088) See accompanying notes to financial statements. 15

20 Educational Fund Statement of Expenditures Disbursed - Actual and Budget Year ended June 30, 2017 Actual over Actual Budget (under) Budget SUPPORT SERVICES (CONTINUED) Support services - instructional staff (continued) Educational media services: Salaries 147, , Employee benefits 22,026 22,160 (134) Purchased services (100) Supplies and materials 11,056 12,111 (1,055) Capital outlay - 1,200 (1,200) Other objects (301) Total educational media services 181, ,827 (2,436) Assessment & testing Purchased services 4,440-4,440 Total assessment & testing 4,440-4,440 Total support services - instructional staff $ 194,743 $ 204,827 $ (10,084) Support services - general administration Board of education services: Salaries $ 4,843 $ 4,888 $ (45) Purchased services 24,291 25,150 (859) Supplies and materials 2,426 2,800 (374) Capital outlay (600) Other objects 9,791 9,800 (9) Total board of education services 41,351 43,238 (1,887) Executive administration services: Salaries 129, ,492 (13,613) Employee benefits 23,457 6,491 16,966 Purchased services 1,292 3,500 (2,208) Supplies and materials 270 1,075 (805) Capital outlay (500) Other objects 3,850 3, Total executive administration services 158, , See accompanying notes to financial statements. 16

21 Educational Fund Statement of Expenditures Disbursed - Actual and Budget Year ended June 30, 2017 Actual over Actual Budget (under) Budget SUPPORT SERVICES (CONTINUED) Support services - general administration (continued) Tort immunity services Purchased services 6,449 6, Total support services - general administration $ 206,548 $ 207,946 $ (1,398) Office of the principal services: Salaries $ 219,481 $ 237,315 $ (17,834) Employee benefits 70,112 58,932 11,180 Purchased services 959 3,500 (2,541) Supplies and materials 2,897 3,500 (603) Capital outlay - 1,200 (1,200) Other objects 4,972 4, Total office of the principal services 298, ,947 (10,526) Other support services - school admin Supplies and materials 17,164 17, Capital projects (600) Total other support services - school admin 17,164 17,600 (436) Total support services - school administration $ 315,585 $ 326,547 $ (10,962) Support services - business Fiscal services: Salaries $ 54,613 $ 61,737 $ (7,124) Employee benefits 7,988 9,010 (1,022) Purchased services 622 1,000 (378) Supplies and materials 1,038 1,800 (762) Capital outlay (600) Other objects 910 1,600 (690) Total fiscal services 65,171 75,747 (10,576) See accompanying notes to financial statements. 17

22 Educational Fund Statement of Expenditures Disbursed - Actual and Budget Year ended June 30, 2017 Actual over Actual Budget (under) Budget SUPPORT SERVICES (CONTINUED) Support services - business (continued) Food services: Salaries 91,586 92,212 (626) Employee benefits 9,010 9,010 - Purchased services 1,533 4,600 (3,067) Supplies and materials 107, ,000 (11,350) Capital outlay (600) Other objects Total food services 210, ,222 (15,569) Total support services - business $ 275,824 $ 301,969 $ (26,145) Support services - central Staff services: Salaries $ 600 $ - $ 600 Employee benefits Total staff services Total support services - central $ 676 $ - $ 676 Other support services Other objects $ 70,450 $ 133,000 $ (62,550) Total other support services 70, ,000 (62,550) Total support services $ 1,378,347 $ 1,494,025 $ (115,678) COMMUNITY SERVICES Supplies and materials $ 581 $ 1,000 $ (419) Total community services $ 581 $ 1,000 $ (419) See accompanying notes to financial statements. 18

23 Educational Fund Statement of Expenditures Disbursed - Actual and Budget Year ended June 30, 2017 Actual over Actual Budget (under) Budget PAYMENTS TO OTHER DISTRICTS & GOV'T UNITS Payments to other gov't units (in-state) Payments for special education programs: Purchased services $ 228,356 $ 200,000 $ 28,356 Payments for CTE programs: Other objects 153, ,000 - Other payments to in-state gov't units Purchase services Total payments to dist & other gov't 381, ,000 28,356 units (in-state) Payments for special education programs - tuition Other objects 63,434 40,000 23,434 Total payments to other districts & gov't units $ 444,790 $ 393,000 $ 51,790 Total direct expenditures $ 6,172,203 $ 6,362,949 $ (190,746) Excess (deficiency) of revenue over expenditures $ (4,338) $ (128,152) $ 123,814 See accompanying notes to financial statements. 19

24 Operations and Maintenance Fund Statement of Revenue Received - Actual and Budget Year ended June 30, 2017 Actual over Actual Budget (under) Budget REVENUE FROM LOCAL SOURCES Ad valorem taxes levied by local education agency: Designated purposes levies $ 877,303 $ 888,886 $ (11,583) Total ad valorem taxes levied by district 877, ,886 (11,583) Payments in lieu of taxes: Payments from local housing authority (330) Corporate personal property replacement taxes 163, ,000 13,414 Total payments in lieu of taxes 163, ,330 13,084 Earnings on investments: Interest on investments 8,540 7,480 1,060 Total earnings on investments 8,540 7,480 1,060 Total revenue from local sources $ 1,049,257 $ 1,046,696 $ 2,561 FLOW-THROUGH RECEIPTS/REVENUES FROM ONE DISTRICT TO ANOTHER DISTRICT Flow-through revenue from state sources $ - $ - $ - Total flow-through receipts/revenues from one district to another district $ - $ - $ - REVENUE FROM STATE SOURCES Unrestricted grants-in-aid: General state aid - hold harmless supplemental $ - $ - $ - Total unrestricted grants-in-aid Total revenue from state sources $ - $ - $ - See accompanying notes to financial statements. 20

25 Operations and Maintenance Fund Statement of Revenue Received - Actual and Budget Year ended June 30, 2017 Actual over Actual Budget (under) Budget REVENUE FROM FEDERAL SOURCES Restricted grants-in-aid received directly from federal gov't Other restricted grants-in-aid $ - $ - $ - Total restricted grants-in-aid received directly from federal gov't Total revenue from federal sources $ - $ - $ - Total direct revenue $ 1,049,257 $ 1,046,696 $ 2,561 See accompanying notes to financial statements. 21

26 Operations and Maintenance Fund Statement of Expenditures Disbursed - Actual and Budget Year ended June 30, 2017 Actual over Actual Budget (under) Budget SUPPORT SERVICES Support services - business: Operation and maintenance of plant services Salaries $ 182,253 $ 182,607 $ (354) Employee benefits 36,527 35, Purchased services 94, ,800 (9,452) Supplies and materials 278, ,500 (4,753) Capital outlay 74, ,000 (33,652) Total operation and maintenance of plant services 666, ,852 (47,629) Other support services Purchased services - 14,500 (14,500) Total other support services - 14,500 (14,500) Total support services $ 666,223 $ 728,352 $ (62,129) PAYMENTS TO OTHER DISTRICTS & GOV'T UNITS Payments to other governmental units (in-state): Payments for CTE programs Other objects $ - $ - $ - Total payments to other districts & gov't units $ - $ - $ - Total direct expenditures $ 666,223 $ 728,352 $ (62,129) Excess (deficiency) of revenue over expenditures $ 383,034 $ 318,344 $ 64,690 See accompanying notes to financial statements. 22

27 Debt Services Fund Statement of Revenues Received - Actual and Budget Year ended June 30, 2017 Actual over Actual Budget (under) Budget REVENUE FROM LOCAL SOURCES Ad valorem taxes levied by local education agency: Designated purposes levies $ - $ - $ - Total ad valorem taxes levied by district Total revenue from local sources $ - $ - $ - Total direct revenue $ - $ - $ - See accompanying notes to financial statements. 23

28 Debt Services Fund Statement of Expenditures Disbursed - Actual and Budget Year ended June 30, 2017 Actual over Actual Budget (under) Budget DEBT SERVICES Debt services - interest on long-term debt: Other objects $ - $ - $ - Debt services - payments of principal on long-term debt: Other objects Total debt services $ - $ - $ - Total direct expenditures $ - $ - $ - Excess (deficiency) of revenue over expenditures $ - $ - $ - See accompanying notes to financial statements. 24

29 Transportation Fund Statement of Revenues Received - Actual and Budget Year ended June 30, 2017 Actual over Actual Budget (under) Budget REVENUE FROM LOCAL SOURCES Ad valorem taxes levied by local education agency: Designated purposes levies $ 383,682 $ 384,531 $ (849) Total ad valorem taxes levied by district 383, ,531 (849) Payments in lieu of taxes: Payments from local housing authority (150) Corporate personal property replacement taxes - 6,000 (6,000) Total payments in lieu of taxes - 6,150 (6,150) Earnings on investments: Interest on investments 6,439-6,439 Total earnings on investments 6,439-6,439 Total revenue from local sources $ 390,121 $ 390,681 $ (560) REVENUE FROM STATE SOURCES Restricted grants-in-aid: Transportation Regular/vocational $ 46,365 $ 130,708 $ (84,343) Special education 10,170 18,831 (8,661) Total transportation 56, ,539 (93,004) Total restricted grants-in-aid 56, ,539 (93,004) Total revenue from state sources $ 56,535 $ 149,539 $ (93,004) Total direct revenue $ 446,656 $ 540,220 $ (93,564) See accompanying notes to financial statements. 25

30 Transportation Fund Statement of Expenditures Disbursed - Actual and Budget Year ended June 30, 2017 Actual over Actual Budget (under) Budget SUPPORT SERVICES Support services - business: Pupil transportation services Salaries $ 194,639 $ 205,668 $ (11,029) Employee benefits 5,564 4, Purchased services 18,796 25,900 (7,104) Supplies and materials 40,441 61,500 (21,059) Capital outlay 90, ,000 (53,010) Other objects 1,304 1,500 (196) Total pupil transportation services 351, ,205 (91,471) Other support services Purchased services 7,564 7, Total other support services 7,564 7, Total support services $ 359,298 $ 450,558 $ (91,260) PAYMENTS TO OTHER DISTRICTS & GOV'T UNITS Payments to other gov't units (in-state): Payment for special education programs Purchased services $ - $ - $ - Total payment for special education programs Total payments to other districts & gov't units $ - $ - $ - Total direct expenditures $ 359,298 $ 450,558 $ (91,260) Excess (deficiency) of revenue over expenditures $ 87,358 $ 89,662 $ (2,304) See accompanying notes to financial statements. 26

31 Municipal Retirement / Social Security Fund Statement of Revenue Received - Actual and Budget Year ended June 30, 2017 Actual over Actual Budget (under) Budget REVENUE FROM LOCAL SOURCES Ad valorem taxes levied by local education agency: Designated purposes levies $ 134,535 $ 140,833 $ (6,298) FICA/Medicare only purposes levies 121, ,839 2,038 Total ad valorem taxes levied by district 256, ,672 (4,260) Payments in lieu of taxes: Payments from local housing authority - 90 (90) Corporate personal property replacement taxes 15,861 15, Total payments in lieu of taxes 15,861 15, Earnings on investments: Interest on investments Total earnings on investments Total revenue from local sources $ 273,115 $ 276,487 $ (3,372) Total direct revenue $ 273,115 $ 276,487 $ (3,372) See accompanying notes to financial statements. 27

32 Municipal Retirement / Social Security Fund Statement of Expenditures Disbursed - Actual and Budget Year ended June 30, 2017 Actual over Actual Budget (under) Budget INSTRUCTION Regular programs: Employee benefits $ 35,929 $ 37,094 $ (1,165) Pre-K programs: Employee benefits 4,991 4, Special education programs: Employee benefits 46,745 44,523 2,222 Special education programs - Pre-K: Employee benefits 2,049 2, Remedial and supplemental programs - K-12: Employee benefits (4) CTE programs: Employee benefits 2,749 2,970 (221) Interscholastic programs: Employee benefits 5,761 5, Summer school programs: Employee benefits (93) Driver's education programs Employee benefits (2) Total instruction $ 99,695 $ 98,681 $ 1,014 SUPPORT SERVICES Support services - pupils: Guidance services Employee benefits $ 1,787 $ 1,990 $ (203) Health services Employee benefits 10,125 10,591 (466) See accompanying notes to financial statements. 28

33 Municipal Retirement / Social Security Fund Statement of Expenditures Disbursed - Actual and Budget Year ended June 30, 2017 Actual over Actual Budget (under) Budget SUPPORT SERVICES (CONTINUED) Support services - pupils (continued): Speech pathology and audiology services Employee benefits 876 1,038 (162) Total support services - pupils 12,788 13,619 (831) Support services - instructional staff: Educational media services Employee benefits 16,154 16,218 (64) Total support services - instructional staff 16,154 16,218 (64) Support services - general administration: Board of education services Employee benefits 1,100 1,103 (3) Executive administration services Employee benefits 12,772 12, Total support services - general administration 13,872 13, Support services - school administration: Office of the principal services Employee benefits 16,291 16,403 (112) Total support services - school administration 16,291 16,403 (112) Support services - business: Fiscal services Employee benefits 12,117 12,370 (253) Operation and maintenance of plant services Employee benefits 40,548 41,203 (655) See accompanying notes to financial statements. 29

34 Municipal Retirement / Social Security Fund Statement of Expenditures Disbursed - Actual and Budget Year ended June 30, 2017 Actual over Actual Budget (under) Budget SUPPORT SERVICES (CONTINUED) Support services - business (continued): Pupil transportation services Employee benefits 35,985 37,652 (1,667) Food services Employee benefits 19,163 20,886 (1,723) Total support services - business 107, ,111 (4,298) Support services - central Staff services Employee benefits 9-9 Total support services - central 9-9 Total support services $ 166,927 $ 172,192 $ (5,265) Total direct expenditures $ 266,622 $ 270,873 $ (4,251) Excess (deficiency) of revenue over expenditures $ 6,493 $ 5,614 $ 879 See accompanying notes to financial statements. 30

35 Capital Projects Fund Statement of Revenue Received - Actual and Budget Year ended June 30, 2017 Actual over Actual Budget (under) Budget REVENUE FROM LOCAL SOURCES Earnings on investments Interest on investments $ 688 $ 300 $ 388 Total earnings on investments Other revenue from local sources School facility occupation tax proceeds 287, ,000 37,448 Total school facility occupation tax proceeds 287, ,000 37,448 Total revenue from local sources $ 288,136 $ 250,300 $ 37,836 Total direct revenue $ 288,136 $ 250,300 $ 37,836 See accompanying notes to financial statements. 31

36 Capital Projects Fund Statement of Expenditures Disbursed - Actual and Budget Year ended June 30, 2017 Actual over Actual Budget (under) Budget SUPPORT SERVICES Support services - business: Facilities acquisition and construction services Capital outlay $ 15,202 $ 75,000 $ (59,798) Total support services $ 15,202 $ 75,000 $ (59,798) Total direct expenditures $ 15,202 $ 75,000 $ (59,798) Excess (deficiency) of revenue over expenditures $ 272,934 $ 175,300 $ 97,634 See accompanying notes to financial statements. 32

37 Tort Fund Statement of Revenue Received - Actual and Budget Year ended June 30, 2017 Actual over Actual Budget (under) Budget REVENUE FROM LOCAL SOURCES Ad valorem taxes levied by local education agency: Designated purposes levies $ 111,499 $ 111,849 $ (350) Total ad valorem taxes levied by district 111, ,849 (350) Payments in lieu of taxes: Payments from local housing authority Total payments in lieu of taxes Earnings on investments: Interest on investments Total earnings on investments Total revenue from local sources $ 112,090 $ 112,399 $ (309) Total direct revenue $ 112,090 $ 112,399 $ (309) See accompanying notes to financial statements. 33

38 Tort Fund Statement of Expenditures Disbursed - Actual and Budget Year ended June 30, 2017 Actual over Actual Budget (under) Budget SUPPORT SERVICES Support services - general administration: Workers' compensation or workers' occupation disease acts payments Purchased services $ 47,484 $ 63,500 $ (16,016) Insurance payments (regular or self-insurance) Purchased services 5,294 4,000 1,294 Educational, inspectional, supervisory services related to loss prevention or reduction Salaries 30,332 40,000 (9,668) Total educational, inspectional, supervisory services related to loss prevention or reduction 30,332 40,000 (9,668) Legal services Purchased services - 1,200 (1,200) Total support services $ 83,110 $ 108,700 $ (25,590) Total direct expenditures $ 83,110 $ 108,700 $ (25,590) Excess (deficiency) of revenue over expenditures $ 28,980 $ 3,699 $ 25,281 See accompanying notes to financial statements. 34

39 Fire Prevention and Safety Fund Statement of Revenue Received - Actual and Budget Year ended June 30, 2017 Actual over Actual Budget (under) Budget REVENUE FROM LOCAL SOURCES Ad valorem taxes levied by local education agency: Designated purposes levies $ 2,208 $ 2,010 $ 198 Total ad valorem taxes levied by district 2,208 2, Payments in lieu of taxes Payments from local housing authorities - 5 (5) Total payments from local housing authorities - 5 (5) Earnings on investments: Interest on investments Total earnings on investments Total revenue from local sources $ 2,412 $ 2,217 $ 195 Total direct revenue $ 2,412 $ 2,217 $ 195 See accompanying notes to financial statements. 35

40 Fire Prevention and Safety Fund Statement of Expenditures Disbursed - Actual and Budget Year ended June 30, 2017 Actual over Actual Budget (under) Budget SUPPORT SERVICES Support services - business: Operation & maintenance of plant services Purchased services $ - $ 15,000 $ (15,000) Total support services $ - $ 15,000 $ (15,000) Total direct expenditures $ - $ 15,000 $ (15,000) Excess (deficiency) of revenue over expenditures $ 2,412 $ (12,783) $ 15,195 See accompanying notes to financial statements. 36

41 Notes to Financial Statements June 30, 2017 (1) Summary of Significant Accounting Policies The District s accounting policies conform to the cash basis of accounting, as defined by the Illinois State Board of Education. (a) Principles Used to Determine the Scope of the Reporting Entity The District s reporting entity includes the District s governing board and all related organizations for which the District exercises oversight responsibility. The District has developed criteria to determine whether outside agencies with activities which benefit the citizens of the District, including joint agreements which serve pupils from numerous districts, should be included within its financial reporting entity. The criteria include, but are not limited to, whether the District exercises oversight responsibility (which includes financial interdependency, selection of governing authority, designation of management, ability to significantly influence operations, and accountability for fiscal matters), scope of public service, and special financing relationships. Joint agreements have been determined not to be part of the reporting entity after applying the manifesting of oversight, scope of public service and special financing relationships criteria, and, are therefore excluded from the accompanying financial statements because the District does not control the assets, operations or management of the joint agreements. In addition, the District is not aware of any entity which would exercise such oversight as to result in the District being considered a component unit of the entity. (b) Basis of Presentation Fund Accounting These financial statements comply with the regulatory basis of reporting as prescribed by the Illinois State Board of Education. The accounts of the District are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets and liabilities arising from cash transactions, fund balance, revenue received and expenditures paid. The District maintains individual funds required by the State of Illinois. These funds are presented on the regulatory basis as required for reports filed with the Illinois State Board of Education. District resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The following fund types and account groups are used by the District: 37

42 Notes to Financial Statements Governmental Funds Governmental funds are those through which most governmental functions of the District are financed. The acquisition, use and balances of the District s expendable financial resources and the related liabilities arising from cash transactions are accounted for through governmental funds. Educational Fund This fund is the general operating fund of the District. It is used to account for all financial resources except those required to be accounted for in another fund. Operations and Maintenance Fund This fund is also a general operating fund used to account for costs of maintaining school buildings. Debt Service Fund This fund is a debt retirement fund. Resources of this fund are used to retire principal and interest maturities of outstanding bond obligations and other long-term debt instruments. Transportation Fund This fund is a special revenue fund used to account for the costs of transporting pupils to and from school and school activities. Municipal Retirement/Social Security Fund This fund is a special revenue fund used to pay the District s share of municipal retirement benefits for covered employees. The District s share of Social Security and Medicare-only is also paid from this fund. Working Cash Fund The resources of this fund are held by the District to be used for temporary interfund loans to any fund of the District for which taxes are levied. Capital Projects Fund Proceeds of construction bond issues, the capital improvement tax levy, and if applicable, school facility occupation tax proceeds are accounted for in this fund. Tort Fund This fund is a special revenue fund used to account for tort immunity or tort judgment purposes. Fire Prevention and Safety Fund Proceeds of fire prevention and safety bond issues and tax levy are accounted for in this fund. Fiduciary Funds Fiduciary funds are used to account for assets held by the District in a trustee capacity or as an agent for individuals, private organizations, other governments or other funds. 38