Accounting Basis: Filing Status: Submit electronic AFR directly to ISBE. Click on the Link to Submit: Send ISBE a File. Single Audit Status:

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1 Due to ROE on Friday, October 14th Due to ISBE on Tuesday. November 15th SDIJAI7 X School District Joint Agreement School DistrictlJoint Agreement Information Se.~ ~s::.,fon~ ~r sc ~ ~r pay~ School District/Joint Agreement Number: County Name: Cook Name of School District/Joint Agreement: Calumet City School District #155 Address: 54 Superior Avenue City: Calurnet City Address: tparaday(tticalumetcityl 55.orct Zip Code: 649 Annual Financial Report Type of Auditor s Report Issued: xi Qualified [~ Unqualified Adverse L..~ Disclaimer 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, 217 Accounting Basis: X CASH ACCRUAL Filing Status: Submit electronic AFR directly to ISBE Click on the Link to Submit: Send ISBE a File Single Audit Status: X YES NO Are Federal expenditures greater than $75,? X YES NO Is all Single Audit Information completed and attached? YES X NO Were any financial statement or federal award findings issued? Certified Public Accountant Information Name of Auditing Firm: John Kasperek Co., Inc. Name of Audit Manager: John Kasperek, Jr., CPA Address: 1471 Ring Road City: Calumet City Phone Number (78) IL License Number (9 digit): Address: kasperekl8ikasperekc~a.com State: Zip Code: IL 649 Fax Number: (78) Expiration Date: X Reviewed by District Superintendent/Administrator x : Reviewed by Township Treasurer (Cook County only) Reviewed by Regional Superintendent/Cook ISC Name of Township: Thornton Fractional District Superintendent/Administrator Name (Type or Print): Township Treasurer Name (type or print) RegionalSuperintenderitlCook ISC Name (Type or Print): Dr. Troy Paraday -, - Scott Wheaton, -, Address: - ~ Address: Address: tparadaycttcalumetcityl5s.org. tftwp~laol.corn -, Telephone: Fax Number: Telephone: ~Fax Number: Telephone: Fax Number: -. (78) ) , (78) (78) ~ Signature & Date * This form is based o 3 Illinois Administrative Code 1, Subtitle A, Cha er I, Su chap C (Part 1). This form is ba ed on 23 Illinois Administrative Code, Subtitle A, Chapter I, Subchapter C, Part 1. ISBE Form SD5O- IJA5O-6 (5117) ri 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 others upporting authorizatiorifdocumentation, as necessary, to use the applicable account code (cell). Printed: 11122/217 afr-1 7-form (1).xlsx

2 TABLE OF CONTENTS Auditors Questionnaire Comments Applicable to the Auditors Questionnaire Financial Profile Information Estimated Financial Profile Summary Basic Financial Statements Statement of Assets and Liabilities Arising from Cash Transactions/Statement of Position Statement of Revenues Received/Revenues, Expenditures Disbursed/Expenditures, Other Sources (Uses) and Changes in Fund Balances (All Funds) Statements of Revenues Received/Revenues (All Funds) Statements of Expenditures Disbursed/Expenditures Budget to Actual (All Funds) Supplementary Schedules Federal Stimulus American Recavery and Reinvestment Act (ARRA) Sche4ule (see Note Regarding page 23: below) Schedule of Ad Valorem Tax Receipts Schedule of Short-Term DebtlLong-Term Debt Schedule of Restricted Local Tax Levies and Selected Revenue Sources/ Schedule of Tort Immunity Expenditures Statistical Section Schedule of Capital Outlay and Depreciation Estimated Operating Expenditures Per Pupil and Per Capita Tuition Charge Computation Estimated Indirect Cost Rate for Federal Programs (Section I, Section II) Report on Shared Services or Outsourcing Administrative Cost Worksheet Itemization Schedule Reference Page Notes, Opinion Letters, etc Deficit Reduction Calculation Audit Checklist/Balancing Schedule Single Audit Section Annual Federal Compliance Report TAB Name Aud Quest Aud Quest FP Info Financial Profile Assets-Liab Acct Summary Revenues Expenditures ARRASchOd Tax Sched Short-Term Long-Term Debt Rest Tax Levies-Tort Im Cap Outlay Deprec PCTC-OEPP ICR Computation Shared Outsourced Serv. AC ITEMIZATION REF Opinion-Notes Deficit AFR Sum CaIc AUDITCHECK Single Audit Cover - CAP AFR Page No INSTRUCTIONS/REQUIREMENTS: For School DistrintelJoint A~reemenfs Note regarding Page 23: Removed because it was no longer needed to report ARRA revenues and expenditures to the federal government. Page numbers are left intact to be consistant with instructions and other notes related to page numbers. In the 218 AFR, page numbers will be changed. All School Districts/Joint Agreements must complete this form (Note: joint agreement supplementary/statistical schedules may not be applicable) Round all amounts to the nearest dollar. Do not enter cents. (Exception: 9 Month ADA on page 28, line 78) This form complies with Part 1 (Requirements for Accounting, Budgeting. Financial Reporting, and Auditing). 23, Illinois Administrative Code 1, Subtitle A, Chanter I, Subchagter C (Part 11 Any errors left unresolved by the Audit Checklist/Balancing Schedule must be explained in the itemization page. Submit AFR Electronically * The Annual Financial Reports (AFR) must be submitted directly through the Attachment Manager to the AFR Group by the Auditor or School District designated personnel (Please see Instructions for complete submission procedures). Attachment Manager Link Note: CD/Disk no longer accepted. * 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 (*.pdi7 and embedded even if you do not have the software. If you have problems embedding the tiles you may attach them as separate (.docx) in the Attachment Manager and ISBE will embedded them for you. Submit Paper Copy of AFR with Signatures 1) 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 treccessary. 2) 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. 3) 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. 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 2.5 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.

3 John Kasperek Co. CERTIFIED PUBLIC ACCOUNTANTS 1471 Ring Road Calumet City, IL INDEPENDENT AUDITOR S REPORT ON SUPPLEMENTARY INFORMATION Board of Education Calumet City School District No. 155 Calumet City, Illinois We have audited the financial statements of the governmental activities and each major fund of Calumet City School District No. 155 (District) as of and for the year ended June 3, 217, and the related notes to the financial statements which collectively comprise the District s basic financial statements and have issued our report thereon dated November 14, 217, which contained a qualified opinion on the governmental activities due to the lack of historical data for capital assets and an unmodified opinion on each major fund. Our audit was performed for the purpose of forming opinions on the basic financial statements as a whole. The accompanying Annual Financial Report, ISBE Form SD5O-35!JA5O-6, as of and for the year ended June 3, 217, has been prepared in the form prescribed by the Illinois State Board of Education, is presented for purposes of additional analysis and is not a required part of the basic financial statements referenced in the preceding paragraph. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information, except for the financial profile information, estimated financial profile summary, supplementary schedules, statistical section, estimated indirect cost rate for federal programs, report on shared services or outsourcing, administrative cost worksheet and itemization schedules, which were not audited and on which we render no opinion, has been subjected to the auditing procedures applied to 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 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, except for those portions identified in the previous sentence as not audited and the effect on the accompanying information of the qualified opinion on the financial statements as described above, the information is fairly stated in all material respects in relation to the basic financial statements as a whole. The answers to questions 1 through 23 contained in the Auditor s Questionnaire on page 2 are based solely on the procedures performed and data obtained during the audit of the basic financial statements of the District as of and for the year ended June 3, 217. Calumet City, llinois November 14, 217 kasperekcpa.com

4 CALUMET CITY SCHOOL DISTRICT NO. 155 NOTES TO ANNUAL FINANCIAL REPORT JUNE 3, 217 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Calumet City School District No. 155 (the District ) is located in Thornton Fractional Township, in Southern Cook County, Illinois. The District is responsible for educating students in kindergarten through eighth grade who reside within the boundaries of a portion of Calumet City. The District operates three schools, Wentworth Jr. High School, Wentworth Intermediate School, and Woodrow Wilson School. Its accounting structure conforms to the guidelines prescribed by the Illinois State Board of Education for public local educational agencies in the State of Illinois. A. THE FINANCIAL REPORTING ENTITY The District is a primary government. It is governed by a Board of Education composed of seven elected board members. These financial statements present Calumet City School District No. 155, a legally separate and fiscally independent government. There are no legally separate organizations for which the elected officials of the District are financially accountable that would be considered to be component units of the District s financial reporting 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, revenues received and expenditures disbursed. The District maintains individual funds required by the State of Illinois. The various funds are summarized by type in the financial statements. 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 District uses the following fund types and account groups: Governmental Fund Types Governmental Funds are those through which most governmental functions of the District are financed. The acquisition, use and balances of the Districts expendable financial resources and the related liabilities (arising from cash transactions) are accounted for through governmental funds. The General Fund, which consists of the Educational Fund and the Operations and Maintenance Fund, is the general operating fund of the District. It is used to account for all financial resources except those required to be accounted for in another fund. Special Revenue Funds, which include the Transportation Fund and the Municipal Retirement/Social Security Fund, are used to account for cash received from specific sources (other than those accounted for in the Debt Service Fund or Fiduciary Funds) that are legally restricted to cash disbursements for specified purposes. The Debt Service Fund (Bond and Interest Fund) accounts for the accumulation of resources for, and the payment of general long-term debt principal, interest and related costs. The Capital Projects Fund (Site and Construction Fund) accounts for financial resources to be used for the acquisition or construction of major capital facilities. The Working Cash Fund accounts for financial resources held by the District to be used for temporary and permanent interfund loans to any other fund in the District. Iofl8

5 CALUMET CITY SCHOOL DISTRICT NO. 155 NOTES TO ANNUAL FINANCIAL REPORT JUNE 3, 217 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED 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 Agency Funds (Activity Funds) include both Student Activity Funds and Convenience 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 - Measurement Focus The financial statements of all governmental funds 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 their statement of assets and liabilities 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 collected and other financing sources) and decreases (cash payments 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 Group 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 on governmental fund type operations are accounted for in the General Fixed Assets Account Group, rather than in governmental funds. Long-term liabilities expected to be financed from governmental funds are accounted for in the General Long-Term Debt Account Group, nqt 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 and expenditures 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 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 collected. In the same manner expenditures are recognized and recorded upon the payment of cash. Assets of a fund are only recorded when a right to collect cash exists which arises from a previous cash transaction. Liabilities of a fund, similarly, result from previous cash transactions. Cash basis financial statements omit recognition of receivables and payables and other accrued and deferred items that do not arise from previous cash transactions. Proceeds from sales of bonds are included as other financing sources in the appropriate fund on the date received. Related bond principal payable in the future is recorded at the same time in the General Long-Term Debt Account Group. 2 of 18

6 CALUMET CITY SCHOOL DISTRICT NO. 155 NOTES TO ANNUAL FINANCIAL REPORT JUNE 3, 217 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED D. BUDGETS AND BUDGETARY ACCOUNTING The budget for all governmental fund types is prepared on the cash basis of accounting which is the same basis that is used in financial reporting, except that the budget basis excludes on-behalf payments for which the District is not legally responsible. This difference has no effect on the excess (deficiency) of revenues received and other financing sources over (under) expenditures disbursed and other financing uses because on-behalf revenues received and expenditures disbursed are equal. The budget, which was not amended, was passed on September 15, 216. 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, in accordance with Chapter 15, Section 5/17-1 of the Illinois Compiled Statutes, 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 disbursed 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 1% 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. OVEREXPENDITURE OF BUDGET Expenditures disbursed exceeded the budget in the following individual fund: Fund Budget Actual Amount Operations and Maintenance $ 1,765,274 $ 2,179,948 $ 414,674 Transportation $ 47,578 $ 479,654 $ 9,76 E. CASH AND INVESTMENTS The Thornton Fractional Township School Treasurer is the official custodian of monies for the school districts within the township, including the District, as prescribed by Chapter 15, Section 5, Article 8 of the Illinois Compiled Statutes. The Township School Treasurer s Office, a legally separate entity under the oversight of the Thornton Fractional Township Trustees of Schools, pools the districts monies and invests, on the districts behalf, in a cash and investment portfolio. The Township School Treasurer s Office has adopted a formal written investment and cash management policy. The policy requires collateralization or independent third-party insurance for deposits in federally insured institutions in excess of FDIC coverage limits, and other institutions in which the Treasurer s Office has invested. The Township School Trustees must approve the type of institution in which investments are made. 3 of 18

7 CALUMET CITY SCHOOL DISTRICT NO. 155 NOTES TO ANNUAL FINANCIAL REPORT JUNE 3, 217 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED The Thornton Fractional Township School Treasurer is separately audited and is not included in these financial statements. Financial information may be obtained directly from the Thornton Fractional Township School Treasurer at 66 Burnham Avenue, Calumet City, Illinois 649. Deposits held in the District s name, consisting of imprest and activity fund accounts, are reported at cost. The District s equity in the Township School Treasurer s Pool is reported based on the cost or amortized cost of the underlying deposits and investments of the pool, which approximates fair value. Interest earned is deposited quarterly into the participating school districts various funds. 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 Fund and capitalized at cost in the General Fixed Assets Account Group. Donated general fixed assets are stated at estimated fair market value as of the date of acquisition. Depreciation accounting is not considered applicable. G. USE OF ESTIMATES The preparation of financial statements in accordance with the modified cash basis of accounting used by the District requires management to make estimates and assumptions that affect certain reported amounts and disclosures (such as estimated useful lives in determining depreciation expense); accordingly, actual results could differ from those estimates. H. USE OF RESTRICTED RESOURCES When both restricted and unrestricted resources are available to use, it is the District s policy to use restricted resources first, then unrestricted resources, as they are needed. I. INVENTORIES It is the District s policy to charge all purchases of items for resale or supplies to expenditures when purchased. inventory accounts are maintained to reflect the values of resale or supply items on hand. No J. PERSONAL PROPERTY REPLACEMENT TAXES Personal property replacement tax revenues are first allocated to funds where taxes were automatically abated by county clerk and to the Municipal Retirement Fund, with the balance allocated to the remaining funds at the discretion of the District. 2. DEPOSITS AND INVESTMENTS The District is allowed to invest in securities as authorized by the Illinois Compiled Statutes, Chapter 3, Sections 235/2 and 23 5/6; and Chapter 15, Section 5/8-7. The District s cash is deposited with the Thornton Fractional Township School Treasurer s Office. The Treasurer invests the cash in a pool under policy guidelines established through the Treasurer s investment policy. Credit risk, concentration of credit risk, and interest rate risk (as applicable) regarding the cash held by the Treasurer is included in the annual audited financial statements of the Thornton Fractional Township Trustees of Schools. 4 of 18

8 CALUMET CITY SCHOOL DISTRICT NO. 155 NOTES TO ANNUAL FINANCIAL REPORT JUNE 3, DEPOSITS AND INVESTMENTS - CONTINUED All deposits and investments of the District, except imprest and activity fund accounts, are maintained in the external cash and investment pooi managed by the Thornton Fractional Township School Treasurer s Office. Each fund type s portion of this pool is displayed on the combined statement of assets and liabilities arising from cash transactions as Cash/investments - pooled accounts. As of June 3, 217, there was no material difference between the fair value and reported amount of the District s equity in the pool. The District s imprest and activity fund accounts at year-end were entirely covered by federal depository insurance. 3. INTERFUND LOANS The District had no interfund loans outstanding at June 3, CHANGES IN GENERAL FIXED ASSETS A summary of changes in General Fixed Assets follows: Balance Balance July 1, 216 Additions Deletions June 3, 217 Land $ 219,64 $ - $ - $ 219,64 Construction in Progress 8,17-8,17 Land Improvements 1,683, , ,286 2,11,676 Buildings and Improvements 15,294, ,294,595 Other Equipment 2,354,6 35,136 43,899 2,345,243 $ 19,559,571 $ 499,362 $ 188,355 $ 19,87, CHANGES IN GENERAL LONG-TERM DEBT Changes in general long-term debt are summarized as follows: Balance Balance Due Within July 1,216 Additions Reductions June 3, 217 One Year General Obligation Bonds $ 28,738,873 $ - $ (1,1,) $ 27,728,873 $ 1,4, Capital Lease Obligations 73,388 - (73,388) - Total Long-Term Debt $ 28,812,261 $ - $ (1,83,388) $ 27,728,873 $ 1,4, 5 of 18

9 CALUMET CITY SCHOOL DISTRICT NO. 155 NOTES TO ANNUAL FINANCIAL REPORT JUNE 3, GENERAL LONG-TERM DEBT - CONTINUED General obligation bonds payable at June 3, 217 are comprised of the following individual issues: Series 29C Capital Appreciation Taxable Refunding bonds, issued for $6,243, dated October 8, 29 (refunding of non-voting portion of series 26C), providing for the serial retirement of principal on December 1 with final payment due on June 1, 229, at rates ranging from 6.75 to 7.15 percent through 229. $ 6,243,873 Series 212A Refunding Limited School bonds, issued for $3,695, dated August 15, 212 (refunding of 29A limited school bonds and a portion of series 29B taxable limited school bonds), providing for the serial retirement of principal on December 1 and interest payable on June 1 and December 1, at a rate of 3.1 percent through ,18, Series 212B Taxable Refunding Limited School Bonds, issued for $1,74, dated August 15, 212 (refunding a portion of series 29B taxable limited school bonds and a portion of series 29E taxable refunding school bonds), providing for the serial retirement of principal on December 1 and interest payable on June 1 and December 1, at a rate of 3.9 percent through ,6, Series 212C Taxable Refunding School bonds, issued for $2,365, dated August 15, 212 (refunding of a portion of series 29E taxable refunding school bonds), providing for the serial retirement of principal on December 1 and interest payable on June 1 and December 1 at rates ranging from 1.35 to 5.3 percent through At June 3, 217, the annual cash flow requirements of bond principal and interest are as follows: Year Ending June 3 Principal Interest Total 218 $ 1,4, $ 918,55 $ 1,958, ,565, 879,739 2,444, ,61, 83,2 2,44, ,17,3 7,69,767 15,87, ,191,573 12,375,55 18,567, ,35, 647,95 9,952,95 $ 27,728,873 $ 22,721,513 $ 5,45,386 $27,728,873 In prior years, the District defeased certain general obligation bonds by placing the refunding portion of the proceeds of new bonds in irrevocable trusts to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the District financial statements. As of June 3, 217, $19,15,88 of bonds outstanding are considered defeased. As of June 3, 217, the District s legal debt margin is zero based on a debt limitation of $6,615,36 equal to 6.9% of the 216 equalized assessed valuation of $95,873,993 and outstanding debt of $27,728,873. The Illinois School Code permits school districts to issue certain types of bonds, such as the Series 29 and series 212 Bonds, in excess of statutory debt limitations. 6 of 18

10 CALUMET CITY SCHOOL DISTRICT NO. 155 NOTES TO ANNUAL FINANCIAL REPORT JUNE 3, OPERATING LEASE OBLIGATIONS In 217, the District acquired a copier under the provisions of a lease agreement. The copier s lease is for five years and expires February 222. All lease terms are subject to aimual appropriation of funds for the lease payments. All lease payments are paid out of the Educational Fund. Year Ending June 3 Principal Interest Total 218 $ 26,319 $ 5,581 $ 31, ,11 4,789 34, ,43 3,37 34, ,915 1,885 34, ,2 S 143,478 S 16,22 $ PROPERTY TAXES The District s property tax is levied each year on all taxable real property located in the District on or before the last Tuesday in December. Property is appraised by the County Assessor at various percentages of fair market value and then subjected to equalization by the Illinois Department of Revenue to bring the aggregate County level toward the statutory standard of 33-1/3 of fair market value. Property taxes levied for any year attach as an enforceable lien on property as of January 1 and are due and payable in the following calendar year. Real estate tax bills are payable in two installments. The first installment is computed at 55% of the prior year s bill and is mailed in late January with a March 1 due date. The second installment is computed after the assessed valuations for the current year have been determined, usually in August or September. Final tax bills are mailed with a penalty date at least 3 days after the date of mailing, but not earlier than August 1. The District receives significant distributions of tax receipts approximately one month after these due dates. The District considers that the first installment of the 216 levy is to be used to finance operations in fiscal 217. The District has determ.ined that the second installment of the 216 levy is to be used to finance operations in fiscal 218. For taxing districts in Cook County, including the District, the tax rate limit is required to be applied to the equalized assessed valuation (EAV) of property for the levy year prior to the levy year for which taxes are then being extended. The actual levy rate is stated based on the current EAV of property. As a result, a taxrate may be at its maximum for the levy year even though less than its corresponding limit. The Board passed the current levy on December 15, 216. The following are the tax rate limits permitted by the School Code and by local referendum and the actual rates levied per $1. of equalized assessed valuation. Actual Actual Limit 216 Levy 215 Levy Education Building Transportation As needed Municipal Retirement As needed Social Security As needed Bond and Interest As needed of 18

11 CALUMET CITY SCHOOL DISTRICT NO. 155 NOTES TO ANNUAL FINANCIAL REPORT JUNE 3, COOK COUNTY 214 LEVY Cook County Tax Extension department levied taxes to pay principal and interest related to the 21 and 25 General Obligation Bonds in the 214 tax levy. The amount extended by the County was $56, for the 21 GO Bond Issue and $1,975, for the 25 GO Bond Issue. These two bond issues had been refunded by later bond issues authorized by the School District and therefore have been fully repaid. Since these two bond issues have been repaid, no tax extension for these bond issues should have been made. The School District Board has discussed this issue with their legal counsel and has determined that the School District will abate future Debt Service tax levies by the amount of taxes that are collected related to these two tax levies. Per the 214 levy collections received at June 3, 215, the amount of$184,247 was related to the 21 GO Bond Issue and $651,949 was related to the 25 GO Bond Issue totaling $836,196. Per the 214 levy collections received at June 3, 216, the amount of $356,76 was related to the 21 GO Bond Issue and $1,259,962 was related to the 25 GO Bond Issue totaling $1,616,38. Per the 214 levy collections received at June 3, 217, the amount of $2,11 was related to the 21 GO Bond Issue and $7,465 was related to the 25 GO Bond Issue totaling $9,575. Total amount collected during the past three fiscal years for the 21 GO Bond Issue was $542,434 and the 25 GO Bond Issue was $1,919, PERMANENT TRANSFERS Education Fund Working Cash TRANSFERS TRANSFERS IN OUT $ 3,915,936 $ - - 3,915,936 $ 3,915,936 $ 3,915,936 The permanent transfer was made between the Working Cash Fund and the Education Fund for general expenditures. 18 of 18

12 CALUMET CITY SCHOOL DISTRICT NO. 155 TEACHERS RETIREMENT SYSTEM OTHER INFORMATION SCHEDULE OF EMPLOYER LIABILITY AND CONTRIBUTIONS JUNE 3, 217 IRS Fiduciary Net Position Detailed information about the TRS s fiduciary net position as of June 3, 216 is available in the separately issued TRS Comprehensive Annual Financial Report. Employer s proportion of the net pension liability SCHEDULE OF THE EMPLOYER S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY Teachers Retirement System of the State of Illinois FYI7* FYI6* FY15*,129247% % % Employer s proportion share of the net pension liability S 85,878 $ 762,382 $ 636,4 State s proportionate share of the net pension liability associated with the employer 5,458,692 4,372,931 36,773,147 Total S 51,264,57 $ 41,135,313 $ 37,49,547 Employer s covered-employee payroll Employer s proportionate share of the net pension liability as a percentage of its coveredemployee payroll Plan fiduciary net position as a percentage of the total pension liability * The amounts presented were determined as of the priorfiscal-year end. $ 6,357,3 $ 6,227,73 $ 5,957, % 12,2% 1.7% 36.4% 41.5% 43.% SCHEDULE OF THE EMPLOYER CONTRIBUTIONS Teachers Retirement System of the State of Illinois Statutorily-required contribution Contribution in relation to the statutorily-required contribution Contribution deficiency (excess) Employer s covered-employee payroll Contribution as a percentage of covered-employee payroll June 3, 217 June 3, 216 June 3, 215 $ 4,573 $ 39,537 $ 4,735 4,571 39,536 4,778 $ 2 $ I $ (43) $ 6,453,92 $ 6,357,3 $ 6,227,73.6%.6%.7% The information in both schedules will accumulate until a full 1-year trend is presented as required by Statement No. 68. Notes to Supplementary Information Changes in assumptions: For the 216 measurement year, the assumed investment rate of return was of 7. percent, including an inflation rate of 2.5 percent and a real return of 4.5 percent. Salary increases were assumed to vary by service credit. For the 215 measurement year, the assumed investment rate of return was 7.5 percent, including an inflation rate of 3. percent and a real return of 4.5 percent. Salary increases were assumed to vary by service credit. Various other changes in assumptions were adopted based on the experience analysis for the three-year period ending June 3, 214. For the 214 measurement year, the assumed investment rate of return was also 7.5 percent, including an inflation rate of 3. percent and real return of 4.5 percent, However, salary increases were assumed to vary by age. For more information, see Note 12-A 1 of 1

13 CALUMET CITY SCHOOL DISTRICT NO. 155 ILLINOIS MUNICIPAL RETIREMENT FUND OTHER INFORMATION SCHEDULE OF EMPLOYER CONTRIBUTIONS JUNE 3, 217 Actual Contribution Actuarially Contribution as a Percentage of Calendar Year Ended December Determined Actual Deficiency Covered Valuation Covered Valuation 31, Contribution Contribution (Excess) Payroll Payroll 214 $ 23,486 $ 29,925 $ (6,439) $ 1,711, % 215 $ 228,363 $ 228,364 $ (I) $ 1,862, % 216 $ 234,524 $ 234,523 S I $ 1,851, % Valuation Date: Actuarially determined contribution rates are calculated as of December 31 each year, which is 12 months prior to the beginning of the fiscal year in which contributions are reported. Methods and Assumptions Used to Determine 216 Contribution Rates: Actuarial Cost Method: Amortization Method: Remaining Amortization Period: Asset Valuation Method: Aggregate Entry Age Normal Level Percentage of Payroll, Closed Taxing bodies (Regular, SLEP, and ECO groups): 27-year closed period until remaining period reaches 15 years (then 15-year rolling period). Early Retirement Incentive Plan liabilities: a period up to 1 years selected by the Employer upon adoption of ERI. 5-year smoothed market; 2% corridor Wage Growth: 3.5% Price Inflation: 2.75%, approximate; No explicit price inflation assumption is used in this valuation. Salary Increases: 3.75% to 14.5%, including inflation Investment Rate of Return: 7.5% Retirement Age: Experience-based table of rates that are specific to the type of eligibility condition. Last updated for the 214 valuation pursuant to an experience study of the period 211 to 213. Mortality: For non-disabled retirees, an IMRF specific mortality table was used with fully generational projection scale MP-214 (base year 212). The IMRF specific rates were developed from the RP-214 Blue Collar Health Annuitant Mortality Table with adjustments to match current IMRF experience. For disabled retirees, an IMRF specific mortality table was used with fully generational projection scale MP-214 (base year 212). The IMRF specific rates were developed from RP-2I4 Disabled Retirees Mortality Table applying the same adjustment that were applied for non-disabled lives. For active members, an IMRF specific mortality table was used with fully generational projection scale MP-214 (base year 212). The IMRF specific rates were developed from the RP-214 Employee Mortality Table with adjustments to match current IMRF experience. Other Information: There were no benefit changes during the year. Notes to Schedule: This schedule is presented to illustrate the requirement to show information for 1 years. However, until a fill 1-year trend is compiled, information is presented for those years for which information is available. For more information, see Note 12-B. I of 1

14 CALUMET CITY SCHOOL DISTRICT NO. 155 ILLINOIS MUNICIPAL RETIREMENT FUND OTHER INFORMATION SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS JUNE 3, 217 Calendar Year Ended December 31, Total Pension Liability Service Cost $ 22,745 $ 23,39 $ 211,654 Interest on the Total Pension Liability 621,76 572, ,55 Changes of Benefit Terms Differences Between Expected and Actual Experience of the Total Pension Liability (273,884) 156,227 (4,449) Changes of Assumptions (39,5) 19, ,299 Benefit Payments, including Refunds of Employee Contributions (29,552) (262,51) (264,839) Net Change in Total Pension Liability 238, ,829 81,215 Total Pension Liability - Beginning 8,368,758 7,679,929 6,869,714 Total Pension Liability - Ending (A) $ 8,67,273 $ 8,368,758 $ 7,679,929 Plan Fiduciary Net Position Contributions- Employer $ 234,523 $ 228,364 $ 29,925 Contributions- Employees 83,323 83,986 79,533 Net Investment Income 466,43 33, ,579 Benefit Payments, including Refunds of Employee Contributions (29,552) (262,51) (264,839) Other (Net Transfers) 6,168 (67,992) 25,659 Net Change in Plan Fiduciary Net Position 499,865 15,74 435,857 Plan Fiduciary Net Position - Beginning 6,76,214 6,744,51 6,38,653 Plan Fiduciary Net Position - Ending (B) $ 7,26,79 $ 6,76,214 $ 6,744,51 Net Pension Liability - Ending (A) - (B) $ 1,347,194 $ 1,68,544 $ 935,419 Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 84.35% 8.78% 87.82% Covered Valuation Payroll $ 1,851,18 $ 1,862,671 $ 1,711,41 Net Pension Liability as a Percentage of Covered Valuation Payroll 72.78% 86.36% 54.66% Notes to Schedule: This schedule is presented to illustrate the requirement to show information for 1 years. However, until a full 1-year trend is compiled, information is presented for those years for which information is available. The net pension liability above is for disclosure purposes only. For additional information, see Note 12-B. I of 1

15 CALUMET CITY SCHOOL DISTRICT NO. 155 POSTEMPLOYMENT MEDICAL PLAN OTHER INFORMATION SCHEDULE OF FUNDING PROGRESS JUNE 3, 217 Actuarial UAAL as a Actuarial Actuarial Accrued percentage of Fiscal Year Valuation Value of Liability Unfunded AAL Covered End Date Assets (AAL) (UAAL) Funded Ratio Covered Payroll Payroll 217 7/1/214 $ - $ 314,944 $ 314,944.% N/A N/A 216 7/1/214 * $ - $ 314,944 $ 314,944.% N/A N/A 215 7/1/214 * $ - $ 314,944 $ 314,944.% N/A N/A * Results from Prior Year For information regarding contribution percentage rates, assumptions and amortization method, see Note 13-B. I of 1

16 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 tree, then check the box on the left, and attach the appropriate findings/comments. EABT A-FINDINGS 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 Governmenf Efhics Acf. (5 ILCS 42/4A-lOl] 2. One or more custodians of funds failed to comply with the bonding requirements pursuant to fl/mo/s School Code (15 ILCS 5/8-2; ; 19-6j 3. One or more contracts mere executed or purchases made contrary to the provisions of fhe 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 el seq. and 3 tics 235/I el seq.j 5. Restricted funds mere 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 mere executed in non-conformity with the applicable authorizing statute or without statutory Authority. 8. Corporate Personal Property Replacement Tax monies mere deposited and/or used without first satisfying the lien imposed pursuant to the Illinois Sfafe Revenue Sharing Ad (3 ILCS 115/ 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 5/1 7-2A]. 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 FY16 AFR (ISBE FORM 5-35), FY16 Annual Statement of Affairs (ISBE Form 5-37) and FY17 Budget (ISBE FORM 5-36). Explain in the comments box below in persuant to Illinois Schoo/ Code (15 ILCS 5/3-15.1; 5/1-17; 5/17-I). PART B - FINANCIAL DIFFICULTIESICERTIFICATION Criteria pursuant to the Illinois School Code 115 ILCS 5/IA 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 fhrough 34-27j 16. The district has issued short-term debt against two future revenue sources, such as, but not limited to, tax anficipafion 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 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. ~T C - OTHER ISSUES 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), mere reported (e.g. student activity fund findings). 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. X 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. The Independent Auditor s Report opinion on governmental activities is qualified because the school district does not maintain detailed records of historical costs to the capital assets. However, the opinion on each major fund is unmodified. Printed: 11/22/217 afr-17-form (1).xlsx

17 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, and 351) 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 FY217, identify those late payments recorded as Intergovermental 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 Date: 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. 311 I 35 I 351~ I 31 I 315 I Tota DefeW~d1R~we~nue~s (49) H I Mandated Categoricals Payments (311, 35, 351, 31, 315) ~irect R4~~pisIRevenue, I Mandated Categoricals Payments (311, 35, 351, 31, 315 Total * Revenue Code (311-Sp Ed Personnel, 351-Sp Ed Transportation, 35-RegularNocational Transportation, 315-Sp Ed Funding for Children Requiring Services, 31-Sp Ed Private Facilities)?A~T E - 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 * 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 Applicable to the Auditor s Questionnaire: John Kasperek Co. Inc. Name ofaudit Firm (print) The undersigned affirms that this audit was conducted by a qualified auditing firm and in accordance with the applicable standards [23 Illinois Administrative Code Part 1] and the scope of the audit conformed to the requirements of subsection (a) or (b) of 23 Illinois Administrative Code Pert 1 Sect n 11, a appica Ic /7 ~ fr-i 11/~?9/~o,7 Si ture mm/dd/yyyy

18 Page 3 Page 3 A IBId D IEI F IGI H lit J IKI L IM 1 FINANCIAL PROFILE INFORMATION -T 3 Required to be completed for School Districts only. -r 5 A. Tax Rates (Enter the tax rate - ax:.15 for $1.5) -& 7 Tax Year 216 Equalized Aaaeaaed Valuation (EAV(: 95, w Educational ~tiona& Transportation Combined Total Working Caah IC Rate(a) = B. Results of Operations * ReceiptatRevenuea Diaburaernentsl Exceaal (Deficiency) Fund Balance ,148,562 15,957,169 (1,88,67) 5,566,243 (7 * The numbera ahowe are the aum of entdea on Pagea 7 & 8, linea 8, 17,2, and 81 for the Educational, Operationa & Maintenance, 18 Trannportation and Working Caeh Funda. -i-u 2 C. Short-Term Debt ** 21 CPPRTNotea TAWa TANa TOIEMP.Ordera GSACertificatea 22 o~ -; ~ Other Total 24 := 25 ** The numbera ahown are the aum of entdea on page 25. 2) D. Long-Term Debt 29 Check the applicable box for long-term debt allowance by type of diatdct. 31 x a. 6.g% for elementary and high achool diatricta, 6,615,36 32 b. 13.8% for unit diatricta Long-Term Debt Outstanding: c. Long-Term Debt (Pdncipal only) Acct 37 Outstanding ,728, E. Material Impact on Financial Position 41 If applicable, check any of the following itewa that may have a material impact on the entity s financial poaition dudng future reporting perioda. 42 Attach sheets au needed explaining each item checked Pending Litigation 45 Matedal Decreaae in EAV 46 Matedal lncreaaeldecrease in Enrollment 47 Adverse Arbitration Ruling 48 Paaaage of Referendum 49 Taxea Filed Under Protest 5 Deciaiona By Local Board of Review or Illinois Property Tax Appeal Board (PTAB) 5 ) Other Ongoing Concerns (Describe & Itemize) Comments: Pdnted: 11122/217 afr-17-form (1).xlsx

19 Page4 Page4 AIBI C I D IEI F IGI H Ill K ILl M INI IIQIR 2 ESTIMATED FINANCIAL PROFILE SUMMARY -~ (Go to the following website for reference to the Financial Profile) District Name: Calumet City School District #155 8 District Code: County Name: Cook Fund Balance to Revenue Ratio: Total Ratio Score 4 T2 Total Sum of Fund Balance (P8, Cells C81, D81 FBi & 181) Funds 1, 2, 4, 7 + (5 & 8 if negative) 5,566, Weight Total Sum of Direct Revenues (P7, Cell C8, D8, F8 & 18) Funds 1, 2, 4, & 7, 14,148,562. Value 1.4 Less: Operating Debt Pledged to Other Funds (P8, Cell C54 thru D74) Minus Funds 1 & (Excluding C:D57, C:D61, C:D65, C:D69 and C:D73) Expenditures to Revenue Ratio: Total Ratio Score 2 17 Total Sum of Direct Expenditures (P7, Cell C17, D17, F17, 117) Funds 1, 2 & 4 15,957, Adjustment 1 Total Sum of Direct Revenues (P7, Cell C8, D8, F8, & 18) Funds 1, 2,4 & 7, 14,148,562. Weight Less: Operating Debt Pledged to Other Funds (P8, Cell C54 thru D74) Minus Funds 1 & (Excluding C:D57, C:D61, C:D65, C:D69 and C:D73) Value Possible Adjustment: Days Cash on Hand: Total Days Score 3 24 Total Sum of Cash & Investments (PS, Cell C4, D4, F4, 14 & C5, D5, F5 & IS) Funds 1,24 & 7 5,566, Weight.1 Total Sum of Direct Expenditures (P7, Cell C17, D17, F17 & 117) Funds 1, 2, 4 divided by 36 44, Value Percent of Short-Term Borrowing Maximum Remaining: Total Percent Score 4 Tax Anticipation Warrants Borrowed (P25, Cell F6-7 & F11) Funds 1,2 &4. 1. Weight.1 29 EAV x 86% x Combined Tax Rates (P3, Cell J7 and J1) (.85 x EA~ x Sum of Combined Tax Rates 3,685,923.6 Value Percent of Long-Term Debt Margin Remaining: Total Percent Score 1 32 Long-Term Debt Outstanding (P3, Cell H37) 27,728,873. (319.16) Weight.1 Total Long-Term Debt Allowed (P3, Cell H31) 6,615,35.52 Value Total Profile Score: 3.25 ~ 36 Estimated 218 Financial Profile Designation: REVIEW * Total Profile Score may change based on data provided on the Financial Profile 4 Information, page 3 and by the timing of mandated categorical payments. Final score 41 will be calculated by ISBE. 42 Printed: 11/22/217 afr-1 7-form (1).xlsx