BOND COUNTY COMMUNITY UNIT SCHOOL DISTRICT #2 GREENVILLE, ILLINOIS ANNUAL FINANCIAL REPORT AS OF AND FOR THE YEAR ENDED JUNE 30, 2018

Transcription

1 BOND COUNTY COMMUNITY UNIT SCHOOL DISTRICT #2 GREENVILLE, ILLINOIS ANNUAL FINANCIAL REPORT AS OF AND FOR THE YEAR ENDED JUNE 3, 218 MOSE, YOCKEY, BROWN & KULL, LLC CERTIFIED PUBLIC ACCOUNTANTS SHELBYVILLE, ILLINOIS

2 Due to ROE on Monday, October 15th Due to ISBE on Thursday, November 15th SD/JA18 X School District Joint Agreement ILLINOIS STATE BOARD OF EDUCATION School Business Services Division 1 North First Street, Springfield, Illinois / Illinois School District/Joint Agreement Annual Financial Report * June 3, 218 Accounting Basis: School District/Joint Agreement Information Certified Public Accountant Information (See instructions on inside of this page.) X CASH School District/Joint Agreement Number: ACCRUAL Name of Auditing Firm: MOSE, YOCKEY, BROWN & KULL, LLC County Name: Name of Audit Manager: BOND ROBIN R. YOCKEY Name of School District/Joint Agreement: Address: BOND COUNTY COMMUNITY UNIT SCHOOL DISTRICT 2 23 N. MORGAN, PO BOX 317 Address: Filing Status: City: State: Zip Code: 18 NORTH HENA Submit electronic AFR directly to ISBE SHELBYVILLE IL City: Phone Number: Fax Number: GREENVILLE Click on the Link to Submit: Address: Send ISBE a File IL License Number (9 digit): Expiration Date: wolson@bccu2.org /3/218 Zip Code: Address: mybkcpas@consolidated.net Annual Financial Report Single Audit Status: Type of Auditor's Report Issued: Qualified X Unqualified X YES NO Are Federal expenditures greater than $75,? X Adverse X YES NO Is all Single Audit Information completed and attached? Disclaimer X YES NO Were any financial statement or federal award findings issued? ISBE Use Only Reviewed by District Superintendent/Administrator Reviewed by Township Treasurer (Cook County only) Reviewed by Regional Superintendent/Cook ISC Name of Township: District Superintendent/Administrator Name (Type or Print): DR. WES OLSON Township Treasurer Name (type or print) RegionalSuperintendent/Cook ISC Name (Type or Print): Julie Wollerman Address: Address: Address: wolson@bccu2.org juliewollerman@roe3.org Telephone: Fax Number: Telephone: Fax Number: Telephone: Fax Number: Signature & Date: Signature & Date: Signature & Date: * This form is based on 23 Illinois Administrative Code 1, Subtitle A, Chapter I, Subchapter C (Part 1). This form is based on 23 Illinois Administrative Code, Subtitle A, Chapter I, Subchapter C, Part 1. ISBE Form SD5-35/JA5-6 (5/18) In some instances, use of open account codes (cells) may not be authorized by statute or administrative rule. Each school district or joint agreement is responsible for obtaining the concurring legal opinion and/or other supporting authorization/documentation, as necessary, to use the applicable account code (cell). Printed: 1/18/ afr-18-form

3 TABLE OF CONTENTS TAB Name AFR Page No. Auditor's Questionnaire Aud Quest 2 Comments Applicable to the Auditor's Questionnaire.... Aud Quest 2 Financial Profile Information.... FP Info 3 Estimated Financial Profile Summary... Financial Profile 4 Basic Financial Statements Statement of Assets and Liabilities Arising from Cash Transactions/Statement of Position... Assets-Liab 5-6 Statement of Revenues Received/Revenues, Expenditures Disbursed/Expenditures, Other Sources (Uses) and Changes in Fund Balances (All Funds) Acct Summary 7-8 Statements of Revenues Received/Revenues (All Funds)... Revenues 9-14 Statements of Expenditures Disbursed/Expenditures Budget to Actual (All Funds)... Expenditures Supplementary Schedules Schedule of Ad Valorem Tax Receipts Tax Sched 23 Schedule of Short-Term Debt/Long-Term Debt... Short-Term Long-Term Debt 24 Schedule of Restricted Local Tax Levies and Selected Revenue Sources/ Schedule of Tort Immunity Expenditures Rest Tax Levies-Tort Im 25 Statistical Section Schedule of Capital Outlay and Depreciation... Cap Outlay Deprec 26 Estimated Operating Expenditures Per Pupil and Per Capita Tuition Charge Computation. PCTC-OEPP Indirect Cost Rate - Contracts paid in Current Year. Contarcts Paid in CY 29 Indirect Cost Rate - Computation ICR Computation 3 Report on Shared Services or Outsourcing... Shared Outsourced Serv. 31 Administrative Cost Worksheet.... AC 32 Itemization Schedule... ITEMIZATION 33 Reference Page... REF 34 Notes, Opinion Letters, etc.. Opinion-Notes 35 Deficit Reduction Calculation Deficit AFR Sum Calc 36 Audit Checklist/Balancing Schedule... AUDITCHECK - Single Audit Section Annual Federal Compliance Report... Single Audit Cover - CAP INSTRUCTIONS/REQUIREMENTS: For School Districts/Joint Agreements All School Districts/Joint Agreements must complete this form (Note: joint agreement supplementary/statistical schedules may not be applicable) This form complies with Part 1 (Requirements for Accounting, Budgeting, Financial Reporting, and Auditing). 23, Illinois Administrative Code 1, Subtitle A, Chapter I, Subchapter C (Part 1) 1. Round all amounts to the nearest dollar. Do not enter cents. (Exception: 9 Month ADA on page 27, line 78) 2. Any errors left unresolved by the Audit Checklist/Balancing Schedule must be explained in the itemization page. 3. Before submitting AFR - be sure to break all links in AFR before submitting to ISBE. If links are not broken, amounts entered have changed when opening the AFR. 4. Submit AFR Electronically The Annual Financial Reports (AFR) must be submitted directly through the Attachment Manager to the AFR Group by the Auditor (not from the school district) on before November 15 with the exception of Extension Approvals (Please see AFR Instructions for complete submission procedures). Note: CD/Disk no longer accepted. Attachment Manager Link AFR supporting documentation must be embedded as Microsoft Word (.doc), Word Perfect (*.wpd) or Adobe (*.pdf) and inserted within tab "Opinions & Notes". These documents include: The Audit, Management letter, Opinion letters, Compliance letters, Financial notes etc. For embedding instructions see "Opinions & Notes" tab of this form. Note: In Windows 7 and above, files can be saved in Adobe Acrobat (*.pdf) and embedded even if you do not have the software. If you have problems embedding the files you may attach them as separate (.docx) in the Attachment Manager and ISBE will embedded them for you. 5. Submit Paper Copy of AFR with Signatures a) The auditor must send three paper copies of the AFR form (cover through page 8 at minimum) to the School District with the auditor signature. Note: School Districts and Regional Superintendents may prefer a complete paper copy in lieu of an electronic file. Please comply with their requests as neccessary. b) Upon receipt, the School District retains one copy for their records, signs, and forwards the remaining two copies to the Regional Superintendent's office no later than October 15, annually. c) Upon receipt, the Regional Superintendent's office retains one copy for their records, signs, and forwards the remaining paper copy to ISBE no later than November 15, annually. If the 15th falls on a Saturday, the due date is the Friday before. If the 15th falls on a Sunday, the due date is the Monday after. Yellow Book, CPE, and Peer Review requirements must be met if the Auditor issues an opinion stating "Governmental Auditing Standards" were utilized. Federal Single Audit 2 CFR Requesting an Extension of Time must be submitted in writing via or letter to the Regional Office of Education (at the descretion of the ROE). Approval may be provided up to and no later than December 15 annually. After December 15, audits are considered late and out of compliance per Illinois School Code. 7. Qualifications of Auditing Firm School District/Joint Agreement entities must verify the qualifications of the auditing firm by requesting the most current peer review report and the corresponding acceptance letter from the approved peer review program, for the current peer review period. A school district/joint agreement who engages with an auditing firm who is not licensed and qualified will be required to complete a new audit by a qualified auditing firm at the school district's/joint agreement's expense.

4 INDEPENDENT AUDITOR S REPORT To the Board of Education Bond County Community Unit School District 2 Greenville, Illinois Report on the Financial Statements We have audited the accompanying financial statements of Bond County Community Unit School District 2, as of and for the fiscal year ended June 3, 218, and the related notes to the financial statements, which collectively comprise the District s basic financial statements as listed in the table of contents of the Annual Financial Report form. 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 prescribed and permitted by the Illinois State Board of Education as described in Note 1. 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 opinions 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 opinions. Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles As described in Note 1 of the financial statements, the financial statements are prepared by Bond County Community Unit School District 2 on the basis of the financial reporting provisions prescribed 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.

5 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 above do not present fairly, in accordance with accounting principles generally accepted in the United States of America, the financial position of each fund of Bond County Community Unit School District 2, as of June 3, 218, or the changes in its financial position for the fiscal year then ended. Unmodified Opinion on Regulatory Basis of Accounting In our opinion, the financial statements referred to in above present fairly, in all material respects, the assets, liabilities, and fund balances arising from cash transactions of Bond County Community Unit School District 2 as of June 3, 218, and its revenues received and expenditures disbursed during the fiscal year then ended, in accordance with the financial reporting provisions prescribed by the Illinois State Board of Education as described in Note 1. Basis of Accounting We draw attention to Note 1 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 Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise Bond County Community Unit School District 2 s basic financial statements. The information provided on pages 2-4, Supplementary Schedules, Statistical Section, Report on Shared Services or Outsourcing, Administrative Cost Worksheet, Itemization Schedule, Deficit Reduction Calculation, the Combining Statement of Changes in Assets and Liabilities for the Student Activity Funds and the schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations Part 2, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards are presented for purposes of additional analysis and are not a required part of the basic financial statements. Supplementary Information The information provided on pages 2 through 4, Supplementary Schedules on pages 23 through 25, Statistical Section on pages 26 through 3, Administrative Cost Worksheet on page 32, the Itemization Schedule on page 33, Deficit Reduction Calculation on page 36, the Combining Statement of Changes in Assets and Liabilities for the Student Activity Funds and the schedule of expenditures of federal awards is the responsibility of management and, except for the average daily attendance figure included in the computation of operating expense per pupil on page 27 and the average daily attendance figure, the special education contributions from EBF funds figure, and the English learning (bilingual) contributions from EBF funds figure included in the computation of the per capita tuition charge on page 28, was derived from and relates 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 information is fairly stated in all material respects in relation to the basic financial statements as a whole on the basis of accounting described in Note 1. The information on pages 27, 28 and pages 3 and 36 is propagated from information in the audited financial statements, but we take no responsibility for the accuracy of those calculations. The administrative cost worksheet on page 32 contains unaudited information concerning the current year budget which was provided by the District.

6 The 217 comparative information in the accompanying schedule of expenditures of federal awards was subjected to the auditing procedures applied by us and our report dated November 2, 217 expressed an unqualified opinion that such information was fairly stated in all material respects in relation to the 217 financial statements as a whole. Other Information The Report on Shared Services or Outsourcing on page 31 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. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated October 15, 218, on our consideration of Bond County Community Unit School District 2 s internal control over financial reporting and on 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 Bond County Community Unit School District 2 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 Bond County Community Unit School District 2 s internal control over financial reporting and compliance. Mose, Yockey, Brown and Kull, LLC Certified Public Accountants Shelbyville, Illinois October 15, 218

7 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 Bond County Community Unit School District 2 Greenville, 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 accompanying financial statements of Bond County Community Unit School District 2 as of and for the fiscal year ended June 3, 218, and the related notes to the financial statements, which collectively comprise the District s basic financial statements as listed in the table of contents and have issued our report thereon dated October 15, 218. Our opinion was adverse because the financial statements are not prepared in accordance with accounting principles generally accepted in the United States of America. 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 accounting principles generally accepted in the United States of America. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered Bond County Community Unit School District 2 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 Bond County Community Unit School District 2 s internal control. Accordingly, we do not express an opinion on the effectiveness of Bond County Community Unit School District 2 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 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.

8 Compliance and Other Matters As part of obtaining reasonable assurance about whether Bond County Community Unit School District 2 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 findings number 218-1, and We noted certain matters that we reported to management of Bond County Community Unit School District 2 in a separate letter dated October 15, 218. Bond County Community Unit School District 2 s Response to Findings Bond County Community Unit School District 2 s response to the findings identified in our audit are described in the accompanying schedules of findings and questioned costs. Bond County Community Unit School District 2 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 result of that testing, and not to provide an opinion on the effectiveness of the District 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. Mose, Yockey, Brown & Kull, LLC Certified Public Accountants Shelbyville, Illinois October 15, 218

9 Page 2 Page 2 AUDITOR'S QUESTIONNAIRE INSTRUCTIONS: If your review and testing of State, Local, and Federal Programs revealed any of the following statements to be true, then check the box on the left and attach the appropriate findings/comments. PART A - FINDINGS X 1. One or more school board members, administrators, certified school business officials, or other qualifying district employees failed to file economic interested statements pursuant to the Illinois Government Ethics Act. [5 ILCS 42/4A-11] 2. One or more custodians of funds failed to comply with the bonding requirements pursuant to Illinois School Code [15 ILCS 5/8-2;1-2.19;19-6]. 3. One or more contracts were executed or purchases made contrary to the provisions of the Illinois School Code [15 ILCS 5/1-2.21]. 4. One or more violations of the Public Funds Deposit Act or the Public Funds Investment Act were noted [3 ILCS 225/1 et. seq. and 3 ILCS 235/1 et. seq.]. 5. Restricted funds were commingled in the accounting records or used for other than the purpose for which they were restricted. 6. One or more short-term loans or short-term debt instruments were executed in non-conformity with the applicable authorizing statute or without statutory Authority. 7. One or more long-term loans or long-term debt instruments were executed in non-conformity with the applicable authorizing statute or without statutory Authority. 8. Corporate Personal Property Replacement Tax monies were deposited and/or used without first satisfying the lien imposed pursuant to the Illinois State Revenue Sharing Act [3 ILCS 115/12]. 9. One or more interfund loans were made in non-conformity with the applicable authorizing statute or without statutory authorization per Illinois School Code [15 ILCS 5/ , 2-4 and 2-5]. 1. One or more interfund loans were outstanding beyond the term provided by statute Illinois School Code [15 ILCS 5/ , 2-4, 2-5]. 11. One or more permanent transfers were made in non-conformity with the applicable authorizing statute/regulation or without statutory/regulatory authorization per Illinois School Code [15 ILCS 5/17-2A]. 12. Substantial, or systematic misclassification of budgetary items such as, but not limited to, revenues, receipts, expenditures, disbursements or expenses were observed. 13. The Chart of Accounts used to define and control budget and accounting records does not conform to the minimum requirements imposed by ISBE rules pursuant to Illinois School Code [15 ILCS 5/2-3.27; ]. 14. At least one of the following forms was filed with ISBE late: The FY17 AFR (ISBE FORM 5-35), FY17 Annual Statement of Affairs (ISBE Form 5-37) and FY18 Budget (ISBE FORM 5-36). Explain in the comments box below in persuant to Illinois School Code [15 ILCS 5/3-15.1; 5/1-17; 5/17-1]. PART B - FINANCIAL DIFFICULTIES/CERTIFICATION Criteria pursuant to the Illinois School Code [15 ILCS 5/1A-8]. 15. The district has issued tax anticipation warrants or tax anticipation notes in anticipation of a second year's taxes when warrants or notes in anticipation of current year taxes are still outstanding, as authorized by Illinois School Code [15 ILCS 5/17-16 or through 34-27]. 16. The district has issued short-term debt against two future revenue sources, such as, but not limited to, tax anticipation warrants and General State Aid certificates or tax anticipation warrants and revenue anticipation notes. 17. The district has issued school or teacher orders for wages as permitted in Illinois School Code [15 ILCS 5/8-16, and 34-76] or issued funding bonds for this purpose pursuant to Illinois School Code [15 ILCS 5/8-6; ; 34-76; and 19-8]. 18. The district has for two consecutive years shown an excess of expenditures/other uses over revenues/other sources and beginning fund balances on its annual financial report for the aggregate totals of the Educational, Operations & Maintenance, Transportation, and Working Cash Funds. PART C - OTHER ISSUES X 19. Student Activity Funds, Imprest Funds, or other funds maintained by the district were excluded from the audit. 2. Findings, other than those listed in Part A (above), were reported (e.g. student activity findings). These findings may be described extensively in the financial notes. 21. Federal Stimulus Funds were not maintained and expended in accordance with the American Recovery and Reinvestment Act (ARRA) of 29. If checked, an explanation must be provided. 22. Check this box if the district is subject to the Property Tax Extension Limitation Law. Effective Date: (Ex: //) X 23. If the type of Auditor Report designated on the cover page is other than an unqualified opinion and is due to reason(s) other than solely Cash Basis Accounting, please check and explain the reason(s) in the box below. 23. Opinion is adverse due to regulatory basis presentation. Printed: 1/18/ afr-18-form Reference should be made to the auditor's report regarding this information.

10 Page 3 Page 3 PART D - EXPLANATION OF ACCOUNTING PRACTICES FOR LATE MANDATED CATEGORICAL PAYMENTS (For School Districts who report on an Accrual/Modified Accrual Accounting Basis only) School districts that report on the accrual/modified accrual basis of accounting must identify where late mandated categorical payments (Acct Codes 31, 315, 311, 35, 351, 312, 395) are recorded. Depending on the accounting procedure these amounts will be used to adjust the Direct Receipts/Revenues In calculation 1 and 2 of the Financial Profile Score. In FY218, Identify those late payments recorded as lntergovermental Receivables, Other Recievables, or Deferred Revenue & Other Current Liabilities or Direct Receipts/Revenue. Payments should only be listed once. 24. Enter the date that the district used to accrue mandated categorical payments 25. For the listed mandated categorical (Revenue Code (311, 35, 351, 31, 315) that were vouchered prior to June 3th, but not released until after year end as reported In ISBE FRIS system, enter the amounts that were accrued In the chart below iuu '"' iiifu l -_---_i.-_-_,_-_ &;~~~i~~~~~~~~~~;~~\ ~Jl~r~~--~~~11~~~--~~~ l~\t4l~iie«~ala\~r1i2g!ft~ ~ --="J':1~ Revenue Code (311-Sp Ed Personnel, 351-Sp Ed Transportation, 35-Regular/Vocational Transportation, 315-Sp Ed Funding for Children Requiring Services, 31-Sp Ed Private Facilities, 312-Sp Ed Regular Orphanage Individual, 395-Regual Orphans & Foster Children) PART E - QUALIFICATIONS OF AUDITING FIRM School District/Joint Agreement entitles must verify the qualifications of the auditing firm by requesting the most current peer review report and the corresponding acceptance letter from the approved peer review program for the current peer review. A school district/joint agreement who engages with an auditing firm who Is not licensed and qualified will be required to complete a new audit by a qualified auditing firm at the school district's/joint agreement's expense. Comments A[!J?!!EE.~/,~~!L~!J.!!!Jl_U~!:5 Q"!~~!J.'!!'E!".!!!,~: ---www --~~--~-- www~ www www www ----www , & 2. See schedules of findings and questioned costs. The undersigned affirms that this audit was conducted by a qualified auditing firm and in accordance with the applicable standards [23 llllnols Administrative Code Part 1] and the scope of the audit conformed to the requirements of subsection (a) or (b) of 23 llllnois Administrative Code Part 1 Section 11, as applicable. '::t(~.!~b.~:~~~ e--z-~ - Signature Note: A PDF with signature Is acceptable for this page. Enter the location on signature line e.g. PDF In Opinion Page with signature Printed: 1/15/218 bond county.linked afr-18-form.xlsmreference should be made to the auditor's report regarding this information.

11 Page 3 Page A B C D E F G H I J K L M FINANCIAL PROFILE INFORMATION Required to be completed for School Districts only. A. Tax Rates (Enter the tax rate - ex:.15 for $1.5) Tax Year 217 Equalized Assessed Valuation (EAV): 17,423,28 Educational Operations & Maintenance Transportation Combined Total Working Cash Rate(s): =.3.5 B. Results of Operations * Receipts/Revenues Disbursements/ Expenditures Excess/ (Deficiency) Fund Balance 17,72,143 16,426,635 1,293,58 5,853,376 * The numbers shown are the sum of entries on Pages 7 & 8, lines 8, 17, 2, and 81 for the Educational, Operations & Maintenance, Transportation and Working Cash Funds. C. Short-Term Debt ** CPPRT Notes TAWs TANs TO/EMP. Orders GSA Certificates Other Total = ** The numbers shown are the sum of entries on page 25. D. Long-Term Debt Check the applicable box for long-term debt allowance by type of district. X a. 6.9% for elementary and high school districts, 23,518,413 b. 13.8% for unit districts. Long-Term Debt Outstanding: c. Long-Term Debt (Principal only) Acct Outstanding: ,699,349 E. Material Impact on Financial Position If applicable, check any of the following items that may have a material impact on the entity's financial position during future reporting periods. Attach sheets as needed explaining each item checked. Comments: Pending Litigation Material Decrease in EAV Material Increase/Decrease in Enrollment Adverse Arbitration Ruling Passage of Referendum Taxes Filed Under Protest Decisions By Local Board of Review or Illinois Property Tax Appeal Board (PTAB) Other Ongoing Concerns (Describe & Itemize) Printed: 1/18/ afr-18-form Reference should be made to the auditor's report regarding this information.

12 Page 4 Page A B C D E F G H I K L M N O P Q R District Name: BOND COUNTY COMMUNITY UNIT SCHOOL DISTRICT 2 District Code: County Name: BOND ESTIMATED FINANCIAL PROFILE SUMMARY (Go to the following website for reference to the Financial Profile) 1. Fund Balance to Revenue Ratio: Total Ratio Score 4 Total Sum of Fund Balance (P8, Cells C81, D81, F81 & I81) Funds 1, 2, 4, 7 + (5 & 8 if negative) 5,853, Weight.35 Total Sum of Direct Revenues (P7, Cell C8, D8, F8 & I8) Funds 1, 2, 4, & 7, 17,693,348. Value 1.4 Less: Operating Debt Pledged to Other Funds (P8, Cell C54 thru D74) Minus Funds 1 & 2 (26,795.) (Excluding C:D57, C:D61, C:D65, C:D69 and C:D73) 2. Expenditures to Revenue Ratio: Total Ratio Score 4 Total Sum of Direct Expenditures (P7, Cell C17, D17, F17, I17) Funds 1, 2 & 4 16,426, Adjustment Total Sum of Direct Revenues (P7, Cell C8, D8, F8, & I8) Funds 1, 2, 4 & 7, 17,693,348. Weight.35 Less: Operating Debt Pledged to Other Funds (P8, Cell C54 thru D74) Minus Funds 1 & 2 (26,795.) (Excluding C:D57, C:D61, C:D65, C:D69 and C:D73) Value 1.4 Possible Adjustment: 3. Days Cash on Hand: Total Days Score 3 Total Sum of Cash & Investments (P5, Cell C4, D4, F4, I4 & C5, D5, F5 & I5) Funds 1, 2 4 & 7 5,58, Weight.1 Total Sum of Direct Expenditures (P7, Cell C17, D17, F17 & I17) Funds 1, 2, 4 divided by 36 45, Value.3 4. Percent of Short-Term Borrowing Maximum Remaining: Total Percent Score 4 Tax Anticipation Warrants Borrowed (P24, Cell F6-7 & F11) Funds 1, 2 & Weight.1 EAV x 85% x Combined Tax Rates (P3, Cell J7 and J1) (.85 x EAV) x Sum of Combined Tax Rates 4,345, Value.4 5. Percent of Long-Term Debt Margin Remaining: Total Percent Score 2 Long-Term Debt Outstanding (P3, Cell H37) 15,699, Weight.1 Total Long-Term Debt Allowed (P3, Cell H31) 23,518, Value.2 Estimated 219 Financial Profile Designation: Total Profile Score: 3.7 * RECOGNITION * Total Profile Score may change based on data provided on the Financial Profile Information, page 3 and by the timing of mandated categorical payments. Final score will be calculated by ISBE. Printed: 1/18/ afr-18-form Reference should be made to the auditor's report regarding this information.

13 Page 5 BASIC FINANCIAL STATEMENTS STATEMENT OF ASSETS AND LIABILITIES ARISING FROM CASH TRANSACTIONS STATEMENT OF POSITION AS OF JUNE 3, 218 Page CURRENT ASSETS (1) A B C D E F G H I J K (1) (2) (3) (4) (5) (6) (7) (8) (9) Acct. # Educational Operations & Maintenance Debt Services Transportation Municipal Retirement/Social Security Capital Projects Working Cash Tort Fire Prevention & Safety Cash (Accounts 111 through 115) 1 953,149 48,329 21,74 394,17 97, ,927 3,251,97 3 1,137,45 Investments ,7 452, 752,2 Taxes Receivable 13 Interfund Receivables ,5 Intergovernmental Accounts Receivable 15 Other Receivables 16 Inventory 17 Prepaid Items 18 Other Current Assets (Describe & Itemize) 19 Total Current Assets 1,885,849 48,329 21,74 394,17 549, ,927 3,539,47 752,23 1,137,45 CAPITAL ASSETS (2) Works of Art & Historical Treasures 21 Land 22 Building & Building Improvements 23 Site Improvements & Infrastructure 24 Capitalized Equipment 25 Construction in Progress 26 Amount Available in Debt Service Funds 34 Amount to be Provided for Payment on Long-Term Debt 35 Total Capital Assets CURRENT LIABILITIES (4) ASSETS (Enter Whole Dollars) Interfund Payables 41 11, 15, 126,5 Intergovernmental Accounts Payable 42 Other Payables 43 Contracts Payable 44 Loans Payable 46 Salaries & Benefits Payable 47 Payroll Deductions & Withholdings 48 3, Deferred Revenues & Other Current Liabilities 49 Due to Activity Fund Organizations 493 Total Current Liabilities 3,285 11,31 15, 126,5 LONG-TERM LIABILITIES (5) Long-Term Debt Payable (General Obligation, Revenue, Other) 511 Total Long-Term Liabilities Reserved Fund Balance ,64 48,265 92,79 294,779 Unreserved Fund Balance 73 1,846,96 (1,967) 21,74 394,17 37, ,539,47 625,73 1,137,45 Investment in General Fixed Assets Total Liabilities and Fund Balance 1,885,849 48,329 21,74 394,17 549, ,927 3,539,47 752,23 1,137,45 Print Date: 1/18/ afr-18-form The accompanying notes are an integral part of these financial statements.

14 Page 6 BASIC FINANCIAL STATEMENTS STATEMENT OF ASSETS AND LIABILITIES ARISING FROM CASH TRANSACTIONS STATEMENT OF POSITION AS OF JUNE 3, 218 Page 6 A B 1 ASSETS (Enter Whole Dollars) Acct. # CURRENT ASSETS (1) Cash (Accounts 111 through 115) 1 Investments Taxes Receivable Interfund Receivables Intergovernmental Accounts Receivable Other Receivables Inventory Prepaid Items Other Current Assets (Describe & Itemize) Total Current Assets CAPITAL ASSETS (2) Works of Art & Historical Treasures 21 Land 22 Building & Building Improvements 23 Site Improvements & Infrastructure 24 Capitalized Equipment 25 Construction in Progress 26 Amount Available in Debt Service Funds 34 Amount to be Provided for Payment on Long-Term Debt 35 Total Capital Assets CURRENT LIABILITIES (4) Interfund Payables 41 Intergovernmental Accounts Payable 42 Other Payables 43 Contracts Payable 44 Loans Payable 46 Salaries & Benefits Payable 47 Payroll Deductions & Withholdings 48 Deferred Revenues & Other Current Liabilities 49 Due to Activity Fund Organizations 493 Total Current Liabilities LONG-TERM LIABILITIES (5) Long-Term Debt Payable (General Obligation, Revenue, Other) 511 Total Long-Term Liabilities Reserved Fund Balance 714 Unreserved Fund Balance 73 Investment in General Fixed Assets Total Liabilities and Fund Balance L M N Account Groups Agency Fund General Fixed Assets 378,49 378,49 378,49 378,49 195,515 29,935,77 1,85,789 4,144,573 General Long-Term Debt 21,74 15,678,275 36,126,647 15,699,349 15,699,349 15,699,349 36,126, ,49 36,126,647 15,699,349 Print Date: 1/18/ afr-18-form The accompanying notes are an integral part of these financial statements.

15 Page 7 BASIC FINANCIAL STATEMENT STATEMENT OF REVENUES RECEIVED/REVENUES, EXPENDITURES/DISBURSED/EXPENDITURES, OTHER SOURCES (USES) AND CHANGES IN FUND BALANCE ALL FUNDS - FOR THE YEAR ENDING JUNE 3, 218 Page 7 A B C D E F G H I J K 1 (1) (2) (3) (4) (5) (6) (7) (8) (9) Description Municipal Operations & Fire Prevention & (Enter Whole Dollars) Acct # Educational Debt Services Transportation Retirement/ Social Capital Projects Working Cash Tort Maintenance Safety 2 Security RECEIPTS/REVENUES LOCAL SOURCES FLOW-THROUGH RECEIPTS/REVENUES FROM ONE DISTRICT TO ANOTHER DISTRICT STATE SOURCES FEDERAL SOURCES Total Direct Receipts/Revenues ,76,265 9,66,578 1,461,72 15,881, ,11 832,11 1,318,142 1,318, , , ,89 771, , , ,512 88,39 88,39 799, ,797 84,215 84, Receipts/Revenues for "On Behalf" Payments ,295,67 Total Receipts/Revenues 22,177, ,11 1,318, ,89 771, ,512 88,39 799,797 84,215 DISBURSEMENTS/EXPENDITURES Instruction 1 1,396,17 254,26 Support Services 2 3,691, ,31 712, ,41 435, ,27 76,847 Community Services 3 34,986 16,828 Payments to Other Districts & Govermental Units 4 342,627 Debt Service 5 7, ,226,882 12,126 Total Direct Disbursements/Expenditures 14,779, ,631 2,226, , , , ,27 76,847 Disbursements/Expenditures for "On Behalf" Payments ,295,67 Total Disbursements/Expenditures 21,74, ,631 2,226, , , , ,27 76,847 Excess of Direct Receipts/Revenues Over (Under) Direct Disbursements/Expenditures 3 1,12,598 (9,521) (98,74) 193, ,51 118,867 88,39 142,77 7,368 OTHER SOURCES/USES OF FUNDS OTHER SOURCES OF FUNDS (7) PERMANENT TRANSFER FROM VARIOUS FUNDS Abolishment of the Working Cash Fund Abatement of the Working Cash Fund , 573,359 Transfer of Working Cash Fund Interest 712 Transfer Among Funds 713 Transfer of Interest 714 Transfer from Capital Project Fund to O&M Fund ,775 Transfer of Excess Fire Prevention & Safety Tax and Interest Proceeds to O&M Fund Transfer to Excess Fire Prevention & Safety Bond and Interest Proceeds to Debt Service Fund 5 SALE OF BONDS (72) Principal on Bonds Sold Premium on Bonds Sold Accrued Interest on Bonds Sold ,393 8,25, 377,226 3,486,156 73, , Sale or Compensation for Fixed Assets 6 Transfer to Debt Service to Pay Principal on Capital Leases Transfer to Debt Service to Pay Interest on Capital Leases Transfer to Debt Service to Pay Principal on Revenue Bonds Transfer to Debt Service Fund to Pay Interest on Revenue Bonds Transfer to Capital Projects Fund ISBE Loan Proceeds Other Sources Not Classified Elsewhere Total Other Sources of Funds OTHER USES OF FUNDS (8) ,393 93,775 22,656 4,139 9,2,38 3,75 3,75 3,559, ,644 Print Date: 1/18/ afr-18-form The accompanying notes are an integral part of these financial statements.

16 Page 8 BASIC FINANCIAL STATEMENT STATEMENT OF REVENUES RECEIVED/REVENUES, EXPENDITURES/DISBURSED/EXPENDITURES, OTHER SOURCES (USES) AND CHANGES IN FUND BALANCE ALL FUNDS - FOR THE YEAR ENDING JUNE 3, 218 Page A B C D E F G H I J K (1) (2) (3) (4) (5) (6) (7) (8) (9) Description (Enter Whole Dollars) PERMANENT TRANSFER TO VARIOUS OTHER FUNDS (81) Acct # Educational Operations & Maintenance Debt Services Transportation Municipal Retirement/ Social Security Capital Projects Working Cash Tort Abolishment or Abatement of the Working Cash Fund ,359 Transfer of Working Cash Fund Interest Transfer Among Funds 813 Transfer of Interest 814 Transfer from Capital Project Fund to O&M Fund ,775 Fire Prevention & Safety Transfer of Excess Fire Prevention & Safety Tax & Interest Proceeds to O&M Fund Transfer of Excess Fire Prevention & Safety Bond and Interest Proceeds to Debt Service Fund Taxes Pledged to Pay Principal on Capital Leases ,656 Grants/Reimbursements Pledged to Pay Principal on Capital Leases 842 Other Revenues Pledged to Pay Principal on Capital Leases 843 Fund Balance Transfers Pledged to Pay Principal on Capital Leases 844 Taxes Pledged to Pay Interest on Capital Leases 851 4,139 Grants/Reimbursements Pledged to Pay Interest on Capital Leases 852 Other Revenues Pledged to Pay Interest on Capital Leases 853 Fund Balance Transfers Pledged to Pay Interest on Capital Leases 854 Taxes Pledged to Pay Principal on Revenue Bonds 861 Grants/Reimbursements Pledged to Pay Principal on Revenue Bonds 862 Other Revenues Pledged to Pay Principal on Revenue Bonds 863 Fund Balance Transfers Pledged to Pay Principal on Revenue Bonds 864 Taxes Pledged to Pay Interest on Revenue Bonds 871 Grants/Reimbursements Pledged to Pay Interest on Revenue Bonds 872 Other Revenues Pledged to Pay Interest on Revenue Bonds 873 Fund Balance Transfers Pledged to Pay Interest on Revenue Bonds 874 Taxes Transferred to Pay for Capital Projects 881 Grants/Reimbursements Pledged to Pay for Capital Projects 882 Other Revenues Pledged to Pay for Capital Projects 883 Fund Balance Transfers Pledged to Pay for Capital Projects 884 Transfer to Debt Service Fund to Pay Principal on ISBE Loans 891 Other Uses Not Classified Elsewhere ,164 8,15, 73,663 2,655 Total Other Uses of Funds 79,959 8,15, 53, ,22 2,655 Total Other Sources/Uses of Funds (11,566) 93, ,38 3,75 (53,775) 2,872,953 (2,655) 769,644 Excess of Receipts/Revenues and Other Sources of Funds (Over/Under) Expenditures/Disbursements and Other Uses of Funds 1,91,32 3,254 (56,36) 196, ,51 65,92 2,961, , ,12 Fund Balances - July 1, ,532 34,44 77, , , , ,145 53,588 36,438 Other Changes in Fund Balances - Increases (Decreases) (Describe & Itemize) Fund Balances - June 3, 218 1,882,564 37,298 21,74 394,17 399, ,927 3,539,47 625,73 1,137,45 Print Date: 1/18/ afr-18-form The accompanying notes are an integral part of these financial statements.

17 Page 9 STATEMENT OF REVENUES RECEIVED/REVENUES FOR THE YEAR ENDING JUNE 3, 218 Page 9 A B C D E F G H I J K 1 (1) (2) (3) (4) (5) (6) (7) (8) (9) Municipal Description (Enter Whole Dollars) Operations & Fire Prevention & Acct # Educational Debt Services Transportation Retirement/ Social Capital Projects Working Cash Tort Maintenance Safety 2 Security 3 4 RECEIPTS/REVENUES FROM LOCAL SOURCES (1) AD VALOREM TAXES LEVIED BY LOCAL EDUCATION AGENCY 11 5 Designated Purposes Levies ( ) 7 3,75, ,297 1,314, , ,19 81, ,77 81,527 6 Leasing Purposes Levy ,527 7 Special Education Purposes Levy ,221 8 FICA/Medicare Only Purposes Levies ,96 9 Area Vocational Construction Purposes Levy Summer School Purposes Levy Other Tax Levies (Describe & Itemize) Total Ad Valorem Taxes Levied By District 3,897, ,297 1,314, , ,979 81, ,77 81, PAYMENTS IN LIEU OF TAXES Mobile Home Privilege Tax 121 7,55 1,64 2, , , Payments from Local Housing Authorities Corporate Personal Property Replacement Taxes ,83 22,45 17 Other Payments in Lieu of Taxes (Describe & Itemize) Total Payments in Lieu of Taxes 318,588 1,64 2, , , TUITION 13 2 Regular - Tuition from Pupils or Parents (In State) Regular - Tuition from Other Districts (In State) Regular - Tuition from Other Sources (In State) Regular - Tuition from Other Sources (Out of State) Summer Sch - Tuition from Pupils or Parents (In State) Summer Sch - Tuition from Other Districts (In State) Summer Sch - Tuition from Other Sources (In State) Summer Sch - Tuition from Other Sources (Out of State) CTE - Tuition from Pupils or Parents (In State) CTE - Tuition from Other Districts (In State) CTE - Tuition from Other Sources (In State) CTE - Tuition from Other Sources (Out of State) Special Ed - Tuition from Pupils or Parents (In State) Special Ed - Tuition from Other Districts (In State) Special Ed - Tuition from Other Sources (In State) Special Ed - Tuition from Other Sources (Out of State) Adult - Tuition from Pupils or Parents (In State) Adult - Tuition from Other Districts (In State) Adult - Tuition from Other Sources (In State) Adult - Tuition from Other Sources (Out of State) Total Tuition 41 TRANSPORTATION FEES Regular -Transp Fees from Pupils or Parents (In State) Regular - Transp Fees from Other Districts (In State) Regular - Transp Fees from Other Sources (In State) Regular - Transp Fees from Co-curricular Activities (In State) Regular Transp Fees from Other Sources (Out of State) Summer Sch - Transp. Fees from Pupils or Parents (In State) Summer Sch - Transp. Fees from Other Districts (In State) Summer Sch - Transp. Fees from Other Sources (In State) Summer Sch - Transp. Fees from Other Sources (Out of State) CTE - Transp Fees from Pupils or Parents (In State) CTE - Transp Fees from Other Districts (In State) CTE - Transp Fees from Other Sources (In State) 1433 Printed Date: 1/18/ afr-18-form The accompanying notes are an integral part of these financial statements.

18 Page 1 STATEMENT OF REVENUES RECEIVED/REVENUES FOR THE YEAR ENDING JUNE 3, 218 Page A B C D E F G H I J K (1) (2) (3) (4) (5) (6) (7) (8) (9) Municipal Description (Enter Whole Dollars) Operations & Fire Prevention & Acct # Educational Debt Services Transportation Retirement/ Social Capital Projects Working Cash Tort Maintenance Safety Security CTE - Transp Fees from Other Sources (Out of State) 1434 Special Ed - Transp Fees from Pupils or Parents (In State) 1441 Special Ed - Transp Fees from Other Districts (In State) 1442 Special Ed - Transp Fees from Other Sources (In State) 1443 Special Ed - Transp Fees from Other Sources (Out of State) 1444 Adult - Transp Fees from Pupils or Parents (In State) 1451 Adult - Transp Fees from Other Districts (In State) 1452 Adult - Transp Fees from Other Sources (In State) 1453 Adult - Transp Fees from Other Sources (Out of State) 1454 Total Transportation Fees EARNINGS ON INVESTMENTS 15 Interest on Investments , ,222 1, ,622 1,46 2,528 Gain or Loss on Sale of Investments 152 Total Earnings on Investments 16, ,222 1, ,622 1,46 2,528 FOOD SERVICE 16 Sales to Pupils - Lunch ,4 Sales to Pupils - Breakfast ,252 Sales to Pupils - A la Carte ,476 Sales to Pupils - Other (Describe & Itemize) ,757 Sales to Adults 162 1,72 Other Food Service (Describe & Itemize) 169 2,162 Total Food Service 36,353 DISTRICT/SCHOOL ACTIVITY INCOME 17 Admissions - Athletic ,48 Admissions - Other (Describe & Itemize) 1719 Fees ,593 6,133 Book Store Sales 173 Other District/School Activity Revenue (Describe & Itemize) 179 Total District/School Activity Income 19,1 6,133 TEXTBOOK INCOME 18 Rentals - Regular Textbooks ,788 Rentals - Summer School Textbooks 1812 Rentals - Adult/Continuing Education Textbooks 1813 Rentals - Other (Describe & Itemize) 1819 Sales - Regular Textbooks 1821 Sales - Summer School Textbooks 1822 Sales - Adult/Continuing Education Textbooks 1823 Sales - Other (Describe & Itemize) 1829 Other (Describe & Itemize) 189 Total Textbook Income 84,788 OTHER REVENUE FROM LOCAL SOURCES 19 Rentals 191 2,44 Contributions and Donations from Private Sources 192 Impact Fees from Municipal or County Governments 193 Services Provided Other Districts 194 Refund of Prior Years' Expenditures 195 4,458 Payments of Surplus Moneys from TIF Districts 196 Drivers' Education Fees 197 8,531 Proceeds from Vendors' Contracts 198 School Facility Occupation Tax Proceeds ,948 Payment from Other Districts ,253 Sale of Vocational Projects 1992 Printed Date: 1/18/ afr-18-form The accompanying notes are an integral part of these financial statements.