COMMUNITY UNIT SCHOOL DISTRICT NO. 1 COLES-CUMBERLAND COUNTIES. FINANCIAL STATEMENTS For the Year Ended June 30, 2018

Transcription

1 COLES-CUMBERLAND COUNTIES FINANCIAL STATEMENTS For the Year Ended June 30, 2018

2 TABLE OF CONTENTS Page No. Independent Auditor s Report... 1 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 Independent Auditor s Report on Compliance for Each Major Program and on Internal Control over Compliance Required by the Uniform Guidance... 6 BASIC FINANCIAL STATEMENTS Statement of Assets, Liabilities and Fund Balance Arising from Cash Transactions Regulatory Basis... 8 Statement of Revenues Received, Expenditures Disbursed, Other Financing Sources (Uses) and Changes in Fund Balance - All Funds Except Agency Funds... 9 Statement of Revenues Received All Funds Except Agency Funds Statement of Expenditures Disbursed (and Comparison with Budget): Educational Fund Operations and Maintenance Fund Transportation Fund Municipal Retirement/Social Security Fund Capital Projects Fund Fire Prevention and Safety Fund Notes to Financial Statements SUPPLEMENTARY INFORMATION Combining Statement of Changes in Assets and Liabilities Activity Funds Detailed Statement of Individual Accounts - Charleston High School Activity Funds Detailed Statement of Individual Accounts - Charleston Middle School Activity Funds Detailed Statement of Individual Accounts - Ashmore Activity Funds Detailed Statement of Individual Accounts - Jefferson Activity Funds Detailed Statement of Individual Accounts - Mark Twain Activity Funds Detailed Statement of Individual Accounts - Carl Sandburg Activity Funds OTHER INFORMATION Operating Disbursements Per Pupil Per Capita Tuition Charge Comparative Financial Statistics FEDERAL FINANCIAL COMPLIANCE SECTION Schedule of Expenditures of Federal Awards Schedule of Findings and Questioned Costs Summary Schedule of Prior Audit Findings Corrective Action Plan for Current Year Audit Findings Notes to Schedule of Federal Awards Summary of Findings and Questioned Costs... 70

3 GILBERT, METZGER & MADIGAN, LLP CERTIFIED PUBLIC ACCOUNTANTS 6029 Park Drive, Suite A Michael J. Metzger, CPA P.O. Box 677 phone (217) Joyce A. Madigan, CPA Charleston, Illinois fax (217) Kelsey D. Swing, CPA website gmmcpa.com To the Board of Education Community Unit School District No. 1 Coles and Cumberland Counties Charleston, Illinois Report on the Financial Statements INDEPENDENT AUDITOR S REPORT We have audited the accompanying financial statements of Community Unit School District No. 1, as of and for the year ended June 30, 2018, 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, as described in Note A. 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 from 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. 1

4 Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles As described in Note A, the financial statements are prepared by Community Unit School District No. 1 in accordance with accounting practices 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. The effects on the financial statements of the variances between the regulatory basis of accounting described in Note A 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 the financial position of Community Unit School District No. 1, as of June 30, 2018, or changes in financial position for the fiscal year then ended, in accordance with accounting principles generally accepted in the United States of America. 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, liabilities and fund balances arising from cash transactions of Community Unit School District No. 1 as of June 30, 2018, and its revenue received and expenditures disbursed during the fiscal year then ended, in accordance with the accounting practices prescribed or permitted by the Illinois State Board of Education as described in Note A. Basis of Accounting We draw attention to Note A of the financial statements, which describes the basis of accounting. The financial statements are prepared on the modified cash basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America but permitted by the Illinois State Board of Education. Our opinion is not modified with respect to that matter. Other Matters Other Information Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the Community Unit School District No. 1 s basic financial statements. The schedules listed in the table of contents as supplementary information are presented for the purposes of additional analysis and are not a required part of the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is also not a required part of the basic financial statements of Community Unit School District No. 1. The Supplementary Information and schedule of expenditures of federal awards are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information and the schedule of expenditures of federal awards are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The other information section listed in the table of contents has not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on it. 2

5 The 2017 information in the Schedule of Expenditures of Federal Awards was subjected to the auditing procedures applied by us and our report dated October 16, 2017 expressed an unqualified opinion that such information was fairly stated in all material respects in relation to the 2017 financial statements taken as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued a report dated November 7, 2018, on our consideration of Community Unit School District No. 1 s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Community Unit School District No. 1 s 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 Community Unit School District No. 1 s internal control over financial reporting and compliance. Gilbert, Metzger & Madigan, LLP November 7,

6 GILBERT, METZGER & MADIGAN, LLP CERTIFIED PUBLIC ACCOUNTANTS 6029 Park Drive, Suite A Michael J. Metzger, CPA P.O. Box 677 phone (217) Joyce A. Madigan, CPA Charleston, Illinois fax (217) Kelsey D. Swing, CPA website gmmcpa.com 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 To the Board of Education Community Unit School District No. 1 Coles and Cumberland Counties Charleston, Illinois We have audited, in accordance with the 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 Community Unit School District No. 1, as of and for the year ended June 30, 2018, and the related notes to the financial statements, and have issued our report thereon dated November 7, 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 modified cash basis of accounting, in accordance with regulatory reporting requirements established by the Illinois State Board of Education, which is a comprehensive basis of accounting other than generally accepted accounting principles. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered Community Unit School District No. 1 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 opinion on the financial statements, but not for the purpose of expressing an opinion of the effectiveness of Community Unit School District No. 1 s internal control. Accordingly, we do not express an opinion of the effectiveness of Community Unit School District No. 1 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 a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity 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, and therefore, material weaknesses or significant deficiencies may exist that have not been identified. We did identify certain deficiencies in internal control, described in the accompanying schedule of findings and questioned costs as items , and that we consider to be material weaknesses. 4

7 Compliance and Other Matters As part of obtaining reasonable assurance about whether Community Unit School District No. 1 s financial statements are free from 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 instances of noncompliance or other matters that are required to be reported under Government Auditing Standards and which are described in the accompanying schedule of findings and questioned costs as items and In addition, we noted other matters involving internal control and its operation that we have reported to management of Community Unit School District No. 1 in a separate letter dated November 7, Community Unit School District No. 1 Response to Findings Community Unit School District No. 1 s response to the findings identified in our audit are described in the accompanying schedule of findings and questioned costs. Community Unit School District No. 1 s response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. 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. Gilbert, Metzger & Madigan, LLP November 7,

8 GILBERT, METZGER & MADIGAN, LLP CERTIFIED PUBLIC ACCOUNTANTS 6029 Park Drive, Suite A Michael J. Metzger, CPA P.O. Box 677 phone (217) Joyce A. Madigan, CPA Charleston, Illinois fax (217) Kelsey D. Swing, CPA website gmmcpa.com INDEPENDENT AUDITOR S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE To the Board of Education Community Unit School District No. 1 Coles and Cumberland Counties Charleston, Illinois Report on Compliance for Each Major Federal Program We have audited Community Unit School District No. 1 s compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of Community Unit School District No. 1 s major federal programs for the year ended June 30, Community Unit School District No. 1 s major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Management s Responsibility Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. Auditor s Responsibility Our responsibility is to express an opinion on compliance for each of Community Unit School District No. 1 s major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about Community Unit School District No. 1 s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of Community Unit School District No. 1 s compliance. 6

9 Opinion on Each Major Federal Program In our opinion, Community Unit School District No. 1 complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, Report on Internal Control Over Compliance Management of Community Unit School District No. 1 is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered Community Unit School District No. 1 s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of Community Unit School District No. 1 s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Gilbert, Metzger & Madigan, LLP November 7,

10 BASIC FINANCIAL STATEMENTS

11 STATEMENT OF ASSETS, LIABILITIES AND FUND BALANCE ARISING FROM CASH TRANSACTIONS - REGULATORY BASIS June 30, 2018 Municipal Operations Retirement/ Prevention General General Total and Social Capital Working and Agency Fixed Long-Term (Memorandum Educational Maintenance Transportation Security Projects Cash Tort Safety Fund Assets Debt Only) ASSETS Cash and cash deposits $ 8,182,602 $ 773,261 $ 519,281 $ 797,816 $ 1,051,207 $ 1,260,848 $ 2,177 $ 422,737 $ 210,600 $ - $ - $ 13,220,529 Interfund receivables ,224, ,224,475 Land , ,869 Buildings and building improvements ,076,362-39,076,362 Site improvements and infrastructure ,039,844-6,039,844 Capitalized equipment ,235,048-4,235,048 Construction in progress ,848-44,848 Amount to be provided for payment on long-term debt ,855 23,855 Total Assets $ 8,182,602 $ 773,261 $ 519,281 $ 797,816 $ 1,051,207 $ 2,485,323 $ 2,177 $ 422,737 $ 210,600 $ 50,362,971 $ 23,855 $ 64,831,830 LIABILITIES Interfund payables $ - $ - $ 1,224,475 $ - $ - $ - $ - $ - $ - $ - $ - $ 1,224,475 Payroll deductions and withholdings 33,061 1, ,336 Due to activity fund organizations , ,600 Long-term debt payable ,855 23,855 Total liabilities 33,061 1,275 1,224, ,600-23,855 1,493,266 FUND BALANCE Investment in general fixed assets ,362,971-50,362,971 Fund balance: Reserved 38, ,020 Unreserved 8,111, ,986 (705,194) 797,816 1,051,207 2,485,323 2, , ,937,573 Total fund balance (deficit) 8,149, ,986 (705,194) 797,816 1,051,207 2,485,323 2, ,737-50,362,971-63,338,564 Total Liabilities and Fund Balance $ 8,182,602 $ 773,261 $ 519,281 $ 797,816 $ 1,051,207 $ 2,485,323 $ 2,177 $ 422,737 $ 210,600 $ 50,362,971 $ 23,855 $ 64,831,830 Fire Account Groups The accompanying notes are an integral part of these financial statements. 8

12 STATEMENT OF REVENUES RECEIVED, EXPENDITURES DISBURSED, OTHER FINANCING SOURCES (USES) AND CHANGES IN FUND BALANCE ALL FUNDS EXCEPT AGENCY FUNDS For the Year Ended June 30, 2018 Municipal Fire Operations Retirement/ Prevention Total and Social Capital Working and (Memorandum Educational Maintenance Transportation Security Projects Cash Tort Safety Only) Revenues Received: Local sources $ 11,827,387 $ 1,877,758 $ 900,646 $ 749,229 $ 1,427,172 $ 166,947 $ 2,177 $ 151,491 $ 17,102,807 Flow-through 246, ,345 State sources 7,699, ,525 1,528, ,797,595 Federal sources 1,707, ,707,713 Total direct revenues received 21,481,035 2,447,283 2,429, ,229 1,427, ,947 2, ,491 28,854,460 "On behalf of" receipts 7,822, ,822,784 Total revenues received 29,303,819 2,447,283 2,429, ,229 1,427, ,947 2, ,491 36,677,244 Expenditures Disbursed: Instruction 11,950, , ,200,488 Supporting services 5,689,679 2,057,193 2,366, , , ,930 10,802,664 Community services - - 2, ,200 Payments to other districts and governmental units 1,341, ,341,967 Debt services 23, ,951 Total direct expenditures disbursed 19,005,882 2,057,193 2,368, , , ,930 24,371,270 "On behalf of" payments 7,822, ,822,784 Total expenditures disbursed 26,828,666 2,057,193 2,368, , , ,930 32,194,054 Changes in fund balance 2,475, ,090 60, ,524 1,051, ,947 2, ,561 4,483,190 Fund balance (deficit), beginning of year 5,674, ,896 (765,725) 601,292-2,318, ,176 8,492,403 Fund Balance (Deficit), End of Year $ 8,149,541 $ 771,986 $ (705,194) $ 797,816 $ 1,051,207 $ 2,485,323 $ 2,177 $ 422,737 $ 12,975,593 The accompanying notes are an integral part of these financial statements. 9

13 STATEMENT OF REVENUES RECEIVED - ALL FUNDS EXCEPT AGENCY FUNDS For the Year Ended June 30, 2018 Municipal Fire Operations Retirement/ Prevention Total and Social Capital Working and (Memorandum Educational Maintenance Transportation Security Projects Cash Tort Safety Only) Revenues Received: From local sources: Ad valorem taxes levied: Designated purposes levy $ 9,376,689 $ 1,820,008 $ 889,651 $ 324,306 $ - $ 152,916 $ 2,177 $ 149,368 $ 12,715,115 Leasing purposes levy 64, ,503 Special education purposes levy 133, ,526 FICA/Medicare only purposes levy , ,215 Payments in lieu of taxes: Mobile home privilege tax - 19, ,001 Corporate personal property replacement tax 731, , ,413 Tuition: Regular tuition from pupils or parents (in state) 1, ,196 Summer school tuition from pupils or parents (in state) 7, ,485 Adult tuition from other sources (in state) 598, ,062 Transportation fees: Regular transportation fees from other sources (in state) - - 8, ,802 Regular transportation fees from co-curricular activities Interest on investments 65,099 4, ,244 3,498 14,031-2,123 94,940 Food service: Sales to pupils - lunch 313, ,098 Sales to pupils - ala carte 17, ,032 Sales to adults 8, ,293 District/school activity income: Admissions - athletic 122, ,370 Fees 86, ,328 Textbooks: Rentals - regular 94, ,990 Rentals - continuing education 21, ,156 Contributions and donations from private sources 115,844-1, ,242 Refund of prior years' expenditures Payments of surplus moneys from TIF districts 15, ,124 Drivers' education fees 22, ,875 Proceeds from vendors' contracts School facility occupation tax proceeds ,423, ,423,674 Other local revenues 31,427 34, ,966 Total revenue from local sources 11,827,387 1,877, , ,229 1,427, ,947 2, ,491 17,102,807 From flow-through sources: Flow-through revenue from state sources 32, ,349 Flow-through revenue from federal sources 213, ,996 Total from flow-through sources 246, ,345 10

14 STATEMENT OF REVENUES RECEIVED - ALL FUNDS EXCEPT AGENCY FUNDS For the Year Ended June 30, 2018 Municipal Fire Operations Retirement/ Prevention Total and Social Capital Working and (Memorandum Educational Maintenance Transportation Security Projects Cash Tort Safety Only) From state sources: Unrestricted grants-in-aid: Evidence based funding formula 7,101, , ,671,495 Restricted grants-in-aid: Special education: Private facility tuition 101, ,481 Funding for children requiring special education services 182, ,989 Personnel 249, ,466 Summer school 1, ,054 Career and technical education-agriculture 2, ,822 Bilingual education-downstate-tpi and TBE 3, ,553 State free lunch and breakfast 9, ,968 Drivers education 38, ,091 Transportation - regular , ,333 Transportation - special education , ,147 Other restricted revenue from state sources 8, ,196 Total revenue from state sources 7,699, ,525 1,528, ,797,595 From federal sources: Restricted grants-in-aid received from the federal government through the state: National school lunch program 484, ,262 School breakfast program 152, ,592 Title I - low income 832, ,376 Title IV-A - SSAE 3, ,649 Federal - Special Education - IDEA - Room & Board 21, ,154 Title II - Teacher Quality 74, ,054 Medicaid matching funds - administrative outreach 69, ,393 Medicaid matching funds - fee for service program 67, ,733 Other restricted revenue from federal sources 2, ,500 Total revenue from federal sources 1,707, ,707,713 Total Direct Revenues Received $ 21,481,035 $ 2,447,283 $ 2,429,126 $ 749,229 $ 1,427,172 $ 166,947 $ 2,177 $ 151,491 $ 28,854,460 The accompanying notes are an integral part of these financial statements. 11

15 Unexpended (Overexpended) Actual Budget Budget Expenditures Disbursed: Instruction: Regular Programs: Salaries $ 5,390,158 $ 5,467,659 $ 77,501 Employee benefits 1,361,960 1,476, ,586 Purchased services 1,400 4,300 2,900 Supplies and materials 138, ,312 7,700 Capital outlay 2,215 7,750 5,535 6,894,345 7,102, ,222 Special Education Programs: Salaries 2,281,535 2,251,767 (29,768) Employee benefits 788, ,662 52,996 Supplies and materials 2,194 2, ,072,395 3,095,729 23,334 Remedial and Supplemental Programs K-12: Salaries 390, , Employee benefits 129, ,005 5,880 Purchased services 22,674 30,000 7,326 Supplies and materials 41,730 65,000 23,270 Adult/Continuing Education Programs: 584, ,005 36,634 Purchased services 545, ,000 (45,907) CTE Programs: Salaries 200, ,000 (834) Employee benefits 58,474 62,100 3,626 Supplies and materials 8,586 8,500 (86) Capital outlay 3,829 2,500 (1,329) 271, ,100 1,377 Interscholastic Programs: Salaries 209, ,665 23,022 Employee benefits 13,572 26,685 13,113 Purchased services 106, ,000 1,617 Supplies and materials 41,105 39,130 (1,975) Capital outlay Other 1,780 1,100 (680) Summer School Programs: COMMUNITY UNIT SCHOOL DISTRICT NO. 1 STATEMENT OF EXPENDITURES DISBURSED (AND COMPARISON WITH BUDGET) EDUCATIONAL FUND For the Year Ended June 30, , ,080 35,597 Salaries 4,463 7,000 2,537 Employee benefits

16 STATEMENT OF EXPENDITURES DISBURSED (AND COMPARISON WITH BUDGET) EDUCATIONAL FUND For the Year Ended June 30, 2018 Unexpended (Overexpended) Actual Budget Budget Purchased services 4,925 6,500 1,575 Supplies and materials 402 3,500 3,098 10,087 17,700 7,613 Gifted Programs: Salaries 33,717 33, Employee benefits 11,097 11,100 3 Purchased services Supplies and materials 401 3,500 3,099 46,114 49,400 3,286 Driver's Education Programs: Salaries 127, ,000 (2,472) Employee benefits 14,359 12,900 (1,459) Purchased services (831) 142, ,900 (4,762) Bilingual Programs: Salaries 10,198 12,000 1,802 Supplies and materials ,198 12,100 1,902 Total instruction 11,950,285 12,217, ,296 Support Services: Support Services - Pupils: Attendance and Social Work Services: Salaries 130, ,500 2,128 Employee benefits 35,557 38,600 3,043 Purchased services 6,650 - (6,650) 172, ,100 (1,479) Guidance Services: Salaries 295, ,000 (2,210) Employee benefits 61,427 38,900 (22,527) 356, ,900 (24,737) Health Services: Salaries 129, ,000 (616) Employee benefits 32,142 36,000 3,858 Purchased services 1,599 1, Supplies and materials 11,406 14,000 2,594 Capital outlay - 4,600 4, , ,500 10,737 Psychological Services: Salaries 80,312 80,000 (312) Employee benefits 25,410 27,600 2,190 13

17 STATEMENT OF EXPENDITURES DISBURSED (AND COMPARISON WITH BUDGET) EDUCATIONAL FUND For the Year Ended June 30, 2018 Unexpended (Overexpended) Actual Budget Budget Purchased services 53,592 40,000 (13,592) Supplies and materials , ,250 (11,064) Speech Pathology and Audiology Services: Salaries 248, ,000 1,254 Employee benefits 61,740 67,000 5,260 Purchased services - 35,000 35,000 Supplies and materials 947 1, , ,150 41,717 Total support services - pupils 1,174,726 1,189,900 15,174 Support Services - Instructional Staff: Improvement of Instruction Services: Salaries 195, ,900 54,453 Employee benefits 356, ,780 9,288 Purchased services 134, , ,642 Supplies and materials 66, ,055 38,197 Capital outlay 283, ,000 (84,895) Other Educational Media Services: 1,037,550 1,165, ,185 Supplies and materials 4,141 2,500 (1,641) Total support services - instructional staff 1,041,691 1,168, ,544 Support Services - General Administration: Board of Education Services: Purchased services 282, , ,342 Supplies and materials 1,936 2, Capital outlay (215) Other 17,163 34,000 16, , , ,028 Executive Administration Services: Salaries 392, ,500 5,882 Employee benefits 65,964 66, Purchased services 1,632 1,600 (32) Supplies and materials 2,866 4,000 1,134 Capital outlay 2, (2,029) Other 3,902 3,850 (52) 469, ,600 5,339 14

18 STATEMENT OF EXPENDITURES DISBURSED (AND COMPARISON WITH BUDGET) EDUCATIONAL FUND For the Year Ended June 30, 2018 Unexpended (Overexpended) Actual Budget Budget Service Area Administrative Services: Salaries 39,654 41,700 2,046 Employee benefits 5,927 5,800 (127) 45,581 47,500 1,919 Total support services - general administration 817, , ,286 Support Services - School Administration: Office of the Principal Services: Salaries 1,045,931 1,040,000 (5,931) Employee benefits 236, ,750 22,559 Purchased services 157, ,180 82,475 Supplies and materials 61,939 55,175 (6,764) Capital outlay 6,892 - (6,892) Other 2,098 3,600 1,502 Total support services - school administration 1,510,756 1,597,705 86,949 Support Services - Business: Fiscal Services: Salaries 86,647 90,100 3,453 Employee benefits 15,127 16,900 1,773 Purchased services 53,887 54, Supplies and materials 3,596 3,500 (96) Capital outlay Other , ,510 5,978 Food Services: Purchased services 808, ,000 (48,562) Supplies and materials 42,238 41,500 (738) Capital outlay 9,152 15,000 5, , ,500 (43,452) Internal Services: Supplies and materials 9,697 22,000 12,303 Total support services - business 1,029,181 1,004,010 (25,171) Support Services - Central: Director of Central Support Services: Salaries 92,872 92,875 3 Employee benefits 16,965 17, , ,

19 STATEMENT OF EXPENDITURES DISBURSED (AND COMPARISON WITH BUDGET) EDUCATIONAL FUND For the Year Ended June 30, 2018 Unexpended (Overexpended) Actual Budget Budget Information Services: Purchased services 1,952 3,500 1,548 Staff Services: Salaries 4,500 1,500 (3,000) Total support services - central 116, ,095 (1,194) Total support services 5,689,679 6,049, ,588 Payments to Other Government Units (In-State): Special Education Programs: Purchased services 1,029,412 1,282, ,588 Other Payments to In-State Government Units: Other 20,025 20,000 (25) Payments for Special Education Programs - Tuition: Other 292, , ,070 Total payments to other government units (in-state) 1,341,967 1,751, ,633 Debt Services: Debt Services - Interest on Short-Term Debt: Tax Anticipation Warrants: Other 22,778 22,780 2 Debt Services - Interest on Long-Term Debt: Other 1,173 - (1,173) Total debt services 23,951 22,780 (1,171) Total Expenditures Disbursed $ 19,005,882 $ 20,041,228 $ 1,035,346 The accompanying notes are an integral part of these financial statements. 16

20 STATEMENT OF EXPENDITURES DISBURSED (AND COMPARISON WITH BUDGET) OPERATIONS AND MAINTENANCE FUND For the Year Ended June 30, 2018 Unexpended (Overexpended) Actual Budget Budget Expenditures Disbursed: Support Services - Business: Facilities Acquisition and Construction Services: Capital outlay $ 18,596 $ 26,000 $ 7,404 Other - 7,000 7,000 18,596 33,000 14,404 Operation and Maintenance of Plant Services: Salaries 762, ,639 (34,759) Employee benefits 171, ,017 8,937 Purchased services 315, ,639 56,372 Supplies and materials 757, ,500 4,798 Capital outlay 26,911 7,000 (19,911) Other 5,239 15,000 9,761 2,038,597 2,063,795 25,198 Total Expenditures Disbursed $ 2,057,193 $ 2,096,795 $ 39,602 The accompanying notes are an integral part of these financial statements. 17

21 STATEMENT OF EXPENDITURES DISBURSED (AND COMPARISON WITH BUDGET) TRANSPORTATION FUND For the Year Ended June 30, 2018 Unexpended (Overexpended) Actual Budget Budget Expenditures Disbursed: Support Services - Business: Pupil Transportation Services: Salaries $ - $ 10,000 $ 10,000 Employee benefits - 2,070 2,070 Purchased services 2,194,085 1,971,938 (222,147) Supplies and materials 165, ,000 (20,246) Capital outlay 7,064 2,300 (4,764) Total support services 2,366,395 2,131,308 (235,087) Community Services: Purchased services 2,200 2, Total Expenditures Disbursed $ 2,368,595 $ 2,133,608 $ (234,987) The accompanying notes are an integral part of these financial statements. 18

22 STATEMENT OF EXPENDITURES DISBURSED (AND COMPARISON WITH BUDGET) MUNICIPAL RETIREMENT/SOCIAL SECURITY FUND For the Year Ended June 30, 2018 Unexpended (Overexpended) Actual Budget Budget Expenditures Disbursed: Instruction - Employee Benefits: Regular programs $ 78,871 $ 57,365 $ (21,506) Pre-K programs - 22,996 22,996 Special education programs 142, ,753 32,876 Remedial and supplemental programs - K-12 13,438 19,074 5,636 CTE programs 2,611 2,550 (61) Interscholastic programs 9,507 15,850 6,343 Summer school Gifted programs Driver's education programs (686) Bilingual programs 1,417 - (1,417) Total instruction - employee benefits 250, ,527 44,324 Support Services - Employee Benefits: Support services - pupils 30,532 31, Support services - instructional staff 26,178 14,406 (11,772) Support services - general administration 24,220 19,381 (4,839) Support services - school administration 71,846 47,685 (24,161) Support services - business 148,378 85,514 (62,864) Support services - central 1,348 1, Total support services - employee benefits 302, ,774 (102,728) Total Expenditures Disbursed $ 552,705 $ 494,301 $ (58,404) The accompanying notes are an integral part of these financial statements. 19

23 STATEMENT OF EXPENDITURES DISBURSED (AND COMPARISON WITH BUDGET) CAPITAL PROJECTS FUND For the Year Ended June 30, 2018 Unexpended (Overexpended) Actual Budget Budget Expenditures Disbursed: Support Services - Business: Facilities Acquisition and Construction Services: Purchased services $ - $ 40,000 $ 40,000 Supplies and materials - 25,000 25,000 Capital outlay 212,927 50,000 (162,927) 212, ,000 (97,927) Other Support Services: Purchased services 133, , ,704 Supplies and materials 29, , ,891 Capital outlay - 100, ,000 Other - 50,000 50, , , ,595 Total Expenditures Disbursed $ 375,965 $ 813,633 $ 437,668 The accompanying notes are an integral part of these financial statements. 20

24 STATEMENT OF EXPENDITURES DISBURSED (AND COMPARISON WITH BUDGET) FIRE PREVENTION AND SAFETY FUND For the Year Ended June 30, 2018 Unexpended (Overexpended) Actual Budget Budget Expenditures Disbursed: Support Services - Business: Facilities Acquisition and Construction Services: Purchased services $ 1,376 $ 9,500 $ 8,124 Capital outlay 1,163 - (1,163) Operation and Maintenance of Plant Services: 2,539 9,500 6,961 Purchased services - 48,000 48,000 Capital outlay 8,391 14,000 5,609 8,391 62,000 53,609 Total Expenditures Disbursed $ 10,930 $ 71,500 $ 60,570 The accompanying notes are an integral part of these financial statements. 21

25 NOTES TO FINANCIAL STATEMENTS NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The District's accounting policies conform to the modified cash basis of accounting as defined by the Illinois State Board of Education and the Illinois Administrative Code, which is a basis of accounting other than accounting principles generally accepted in the United States of America. a) Principles Used to Determine Scope of 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 includes, but is 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. The District has determined that no outside agency meets the criteria and, therefore, no agency has been included as a component unit in the District's financial statements. In addition, the District is not aware of any entity which would exercise such oversight which would result in the District being considered a component unit of the entity. b) Basis of Presentation - Fund Accounting: 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 disbursed. The District maintains individual funds required by the State of Illinois. These funds are grouped 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 funds and account groups are used by the District: Governmental Fund Types: 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. The Educational Fund and the Operations and Maintenance Fund are the general operating funds of the District. They are used to account for all financial resources except those required to be accounted for in another fund. Special Education is included in the Educational Fund. The Transportation Fund, Municipal Retirement/Social Security Fund, and Tort Fund are used to account for cash received from specific sources (other than those accounted for in the Debt Services Fund, Capital Projects Fund, Fire Prevention and Safety Fund, or Fiduciary Funds) that are legally restricted to cash disbursements for specified purposes. 22

26 NOTES TO FINANCIAL STATEMENTS The Capital Projects Fund accounts for receipts from the school facilities occupation tax proceeds to be used for school facility purposes. The Fire Prevention and Safety Fund accounts for financial resources to be used for fire prevention, safety, energy conservation or school security purposes. Fiduciary Fund Types: 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. The Working Cash Fund accounts for financial resources held by the District to be used for temporary interfund loans to any fund for which taxes are levied. The Agency Funds (Activity Funds) include student activity accounts. They account for assets held by the District as an agent for the students and teachers. These funds are custodial in nature and do not involve the measurement of the results of operations. The amounts due to the activity fund organizations are equal to the assets. Governmental Funds and Working Cash Fund - Measurement Focus: The financial statements of all governmental funds and the Working Cash Fund focus on the measurement of spending or "financial flow" and the determination of changes in financial position rather than upon net income determination. This means that only current assets and current liabilities are generally included on the statement of assets, liabilities and fund balance arising from cash transactions. The reported fund balance (net current assets) is considered a measure of "available spendable resources." Governmental fund operating statements present increases (cash receipts and other financing sources) and decreases (cash disbursements and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of "available spendable resources" during a period. General Fixed Assets and General Long-Term Debt Account Groups: The accounting and reporting treatment applied to the fixed assets and long-term liabilities associated with a fund are determined by its measurement focus. Fixed assets used in governmental fund type operations are accounted for in the General Fixed Assets Account Group rather than in governmental funds. Under the regulatory basis, depreciation on fixed assets is not recorded. Long-term liabilities expected to be financed from governmental funds are accounted for in the General Long-Term Debt Account Group, not in the governmental funds. The two account groups are not "funds." They are concerned only with the measurement of financial position. They are not involved with measurement of results of operations. c) Basis of Accounting: Basis of accounting refers to when revenues received and expenditures disbursed are recognized in the accounts and how they are reported on the financial statements. The District maintains its accounting records for all funds and account groups on the modified cash basis of accounting under guidelines prescribed by the Illinois State Board of Education. Accordingly, revenues are recognized and recorded in the accounts when cash is received. In the same manner, expenditures are recognized and recorded upon the disbursement of cash. Assets of a fund are only recorded when a right to receive cash exists which arises from a previous cash transaction. Liabilities of a fund, similarly, result from previous cash transactions. 23

27 NOTES TO FINANCIAL STATEMENTS If the District utilized accounting principles generally accepted in the United States of America, the basic financial statements would be replaced with government-wide financial statements and fund financial statements. The fund financial statements would use the modified accrual basis of accounting. The government-wide statements would be presented on the accrual basis of accounting. d) Budgets and Budgetary Accounting: The budget for all Governmental Fund Types and for the Working Cash Fund is prepared on the modified cash basis of accounting which is the same basis that is used in financial reporting. This allows for comparability between budget and actual amounts. This is an acceptable method in accordance with Chapter 105, Section 5/17-1 of the Illinois Compiled Statutes (ILCS). The budget, as originally filed, was passed on September 20, An amended budget was approved on June 20, 2018 and all budget information presented in the financial statements is from the amended budget. For each fund, total fund expenditures disbursed may not legally exceed the budgeted amounts. The budget lapses at the end of each fiscal year. The District follows these procedures in establishing the budgetary data reflected in the financial statements. 1. Prior to July 1, the superintendent submits to the Board of Education a proposed operating budget for the fiscal year commencing on that date. The operating budget includes proposed expenditures and the means of financing them. 2. A public hearing is conducted to obtain taxpayer comments. 3. Prior to October 1, the budget is legally adopted through passage of a resolution. 4. Formal budgetary integration is employed as a management control device during the year. 5. The Board of Education may make transfers between the various items in any fund not exceeding in the aggregate 10% of the total of such fund as set forth in the budget. 6. The Board of Education may amend the budget (in other ways) by the same procedures required of its original adoption. 7. All appropriations lapse at fiscal year end. e) Cash and Cash Deposits: Cash and cash deposits are stated at cost which approximates market. Cash and cash deposits of the different funds are co-mingled for deposit purposes and interest earnings are prorated back to the various funds when recognized as revenue. The District has adopted a formal written investment and cash management policy. The policy requires collateralization for investments in federally insured institutions in excess of FDIC coverage limits. The District s cash and cash deposits were fully collateralized during the year. The institutions in which deposits are made must be approved by the Board of Education. f) General Fixed Assets: General fixed assets have been acquired for general governmental purposes. At the time of purchase, assets are recorded as expenditures disbursed in the governmental funds and capitalized at cost in the general fixed assets account group. 24