BREMEN COMMUNITY HIGH SCHOOL DISTRICT NO. 228 [Midlothian, Illinois] Annual Financial Report And Other Financial Information.

Transcription

1 BREMEN COMMUNITY HIGH SCHOOL DISTRICT NO. 228 [Midlothian, Illinois] Annual Financial Report And Other Financial Information June 30, 2013

2 TABLE OF CONTENTS Independent Auditors' Report... 1 Basic Financial Statements: Statement of Assets and Liabilities Arising from Cash Transactions -Regulatory Basis - All Funds... 3 Statement of Revenues Received, Expenditures Disbursed, Other Sources (Uses) and Changes in Fund Balances -Regulatory Basis All Funds... 4 Statement of Revenues Received- Regulatory Basis -All Funds... 5 Statement of Expenditures Disbursed- Regulatory Basis- Budget to Actual: Educational Fund... 9 Operations and Maintenance Fund Debt Services Fund Transportation Fund Municipal Retirement/Social Security Fund Notes to Financial Statements Supplementary Financial Information: Schedule of Changes in Cash Balances -Activity Funds Other Financial Information: Schedule of Assessed Valuations, Tax Rates and Tax Extensions Schedule ofnet Tax Collections and Uncollected Taxes Schedule of Debt Service Requirements for Bonded Debt Schedule of Legal Debt Margin Schedule of Operating Expense Per Pupil and Per Capita Tuition Charge Other Information: Schedule of Funding Progress

3 MATHIESON MOYSKI CELER (630) A. r" T T P ~ '---"v., J...J...J.. Fax(630) Certified Public Accountants 211 South Wheaton Avenue, Suite 300 Wheaton, IL Board of Education Bremen Community HS District #228 Midlothian, Illinois Report on the Financial Statements Independent Auditor's Report We have audited the accompanying regulatory basis financial statements of Bremen Community HS District #228 (the District), as of and for the year ended June 30, 2013, and the related notes to the fmancial statements, which collectively comprise the District's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with the financial reporting provisions of the Illinois State Board of Education (ISBE) as described in Note 1 to meet the requirements of ISBE. Management is also responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of fmancial 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 fmancial 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 fmancial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the fmancial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the fmancial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the District'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 District'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 Accounting Principles Generally Accepted in the United States As described in Note 1 to the financial statements, to meet the financial reporting requirements ofisbe, the financial statements are prepared by the District on the basis of the financial reporting provisions of ISBE, which is a basis of accounting other than accounting principles generally accepted in the United States of America. The effects on the financial statements for 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 determined, are presumed to be material. MEMBERS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS ILLINOIS CPA SOCIETY

4 Adverse Opinion on Accounting Principles Generally Accepted in the United States of America In our opinion, because of the significance of the matter discussed in the Basis for Adverse Opinion on Accounting Principles Generally Accepted in the United States 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 the District as of June 30,2013, or the revenues, expenses and changes in fund balance for the year then ended. Opinion on Regulatory Basis of Accounting The District does not maintain detailed records of the historical cost of its fixed assets; consequently, we are unable to express an opinion on the General Fixed Assets Account Group. In our opinion, except for the effects of such adjustments, if any, as might have been required with respect to the General Fixed Assets Account Group, the financial statements referred to above present fairly, in all material respects, the regulatory basis fund balance of the District as of June 30, 2013, and the regulatory basis revenues, expenses, and changes in fund balance for the year then ended in accordance with the financial reporting provisions of ISBE described in Note 1. Other Matters Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the District's basic financial statements. The supplementary financial information, other financial information and other information is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplementary financial information and other fmancial information are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic fmancial 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 fmancial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary financial information and other financial information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. The other information 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 November 19,2013 on our consideration of the District's internal control over fmancial 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 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 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 the District's internal control over financial reporting and compliance. Wheaton, Illinois November 19,2013

5 BREMEN COMMUNITY HIGH SCHOOL DISTRICT NUMBER 228 STATEMENT OF ASSETS AND LIABILITIES ARISING FROM CASH TRANSACTIONS- REGULATORY BASIS ALL FUNDS FOR THE YEAR ENDED JUNE 30,2013 WITH COMPARATIVE TOTALS FOR 2012 Educational Operations & Maintenance Govemmental Funds Municipal Fire Debt Retirement/ Working Tort Prevention Agency Services T rans[>ortation Social Securi~ Cash Immunity & Safety Fund Account Groues General Long- General Fixed tenn Assets Debt Totals (Memorandwn Onl;t) 6/30/ ASSETS Cash and investments $ 7,036,867 lnterfund receivables Land Building & building improvements Site improvements & inrrastmcture Capitalized equipment Amount available in debt services fund Amount to be provided for payment on long-tenn debt s 4,270,847 $ 7,628,866 $ 2,524,451 $ 532,179 $ 8,617,779 $ 3,265 $ 15,570 $ 468, ,763 $ $ 474,538 71,902, ,019 31,478,259 7,628,866 7,706,134 $ 3!,098,511 $ 36,912, , , , ,538 71,902,105 70,495, , ,019 31,478,259 30,930,512 7,628,866 7,443,902 7,706,134 16,746,098 Total Assets $ 7,036,867 $ 4,270,847 $ 7,628,866 $ 2,524,451 $ 532,179 $ 8,867,542 $ 3,265 $ 15,570 $ 468,687 $ 104,518,921 $ 15,335,000 $151,202,195 $163,917,804 LIABILITIES AND FUND BALANCE Liabilities: Interfund payables $ Due to activity fund organizations Long-tenn debt payable $ $ $ $ s $ 249,763 $ $ 468,687 $ $ 15,335,000 $ 249,763 $ 249, , ,944 15,335,000 24,190,000 Total Liabilities - $ - $ - $ - $ 249,763 $ - $ 468,687 $ $ 15,335,000 $ 16,053,450 $ 24,919,707 Fund Balance: Reserved $ 856,577 Unreserved 6,180,290 Investment Ill general tixed assets $ 4,270,847 $ $ $ $ $ $ $ 7,628,866 2,524, ,179 8,867,542 (246,498) 15,570 $ $ I 04,51 g;121 $ 856,577 $ 150,534 29,773,247 36,282,503 J04,5Jg,nJ I 02,565,060 Total Fund Balance 7,036,867 4,170,847 7,628,866 2,524, ,179 8,867,542 (246,498) 15, ,518, ,148, ,998,097 Total Liabilities and Fund Balance $ 7,036,867 $ 4,270,847 $ 7,628,866 $ 2,524,451 $ 532,179 $ 8,867,542 $ 3,265 s 15,570 $ 468,687 $ 104,518,921 $ 15,335,000 $151,202,195 $163,917,804 The notes to the financial statements are an integral part of this statement. 3

6 BREMEN COMMUNITY HIGH SCHOOL DISTRICT NUMBER 228 STATEMENT OF REVENUES RECEIVED, EXPENDITURES DISBURSED, OTHER SOURCES (USES) AND CHANGES IN FUND BALANCES- REGULATORY BASIS ALL FUNDS FOR THE YEAR ENDED JUNE 30,2013 WITH COMPARATIVE TOTALS FOR 2012 Municipal Fire Totals Operations & Debt Retirement/ Working Tort Prevention (Memorandum On!~) Educational Maintenance Services Trans[lortation Social Security Cash Immunity & Safety REVENUES RECEIVED: Local sources $ 40,!62,571 $ 4,151,026 $ 9,535,830 s 2,091,371 $ 1,848,104 $ 149,484 $ 28 $ 127 $ 57,938,541 $ 57,017,982 State sources 21,216,633 2,222,387 23,439,020 23,724,386 Federal sources 2,594,270 2,594,270 2,193,081 Total direct revenues received 63,973,474 4,151,026 9,535,830 4,313,758 1,848, , ,971,831 82,935,449 Revenues received for "on behalf' payments 10,744,787 10,744,787 9,845,025 Total Revenues Received 74,718,261 4,151,026 9,535,830 4,313,758 I,848, , ,716,618 92,780,474 EXPENDITURES DISBURSED: Instruction 41,652, ,140 42,501,673 43,396,542 Support services 22,617,958 3,212,049 2,333,129 1,562,318 29,725,454 29,660,120 Community services 42,978 2,274 45,252 54,976 Payments to other districts and govemmental units 5,906,366 1,801,733 7,708,099 6,209,780 Debt service 9,794,566 9,794,566 9,883,111 Total direct expenditures disbursed 70,219,835 3,212,049 9,794,566 4,134,862 2,413,732 89,775,044 89,204,529 Expenditures disbursed for "on behalf' payments 10,744,787 10,744,787 9,845,025 Total Expenditures Disbursed 80,964,622 3,212,049 9,794,566 4,134,862 2,413, ,519,831 99,049,554 Excess (deticiency) of revenues received over expenditures disbursed (6,246,361) 938,977 (258,736) 178,896 (565,628) 149, OTHER FINANCING SOURCES: Abatement of the Working Cash Fund 8,000,000 8,000,000 8,000,000 Transfer from Educational Fund 1,000,000 Sale or compensation for fixed assets 1,100 Transfer to debt services fund to pay principal on capital leases 435, , ,200 lranster to debt serv1ces tlmd to pay mterest on cap1tal leases 8,700 8,700 25,800 Total other financing sources 8,000, ,700 8,443,700 9,592,100 OTHER FINANCING USES: Abatement of the Working Cash Fund 8,000,000 8,000,000 8,000,000 Transfer to Operations and Maintenance Fund 1,000,000 Other revenues pledged to pay principal on capital leases 435, , ,200 Other revenues pledged to pay mterest on cap1tal leases 8,700 8,700 25,800 Total other financing uses 443,700 8,000,000 8,443,700 9,591,000 Total other financing sources (uses) 7,556, ,700 (8,000,000) 1,100 Excess (Deficiency) of revenues received and other financing sources over expenditures disbursed and other financing uses 1,309, , , ,896 (565,628) (7,850,516) (5,803,213) (6,267,980) Fund balances (deficit) at beginning of year 5,726,928 3,331,870 7,443,902 2,345,555 1,097,807 16,718,058 (246,526) 15,443 36,433,037 42,701,017 FUND BALANCES (DEFICIT) AT END OF YEAR $ 7,036,867 $ 4,270,847 $ 7,628,866 $ 2,524,451 $ 532,179 $ 8,867,542 $ (246,498) $ 15,570 $ 30,629,824 $ 36,433,037 The notes to the financial statements are an integral part of this statement. 4

7 BREMEN COMMUNITY HIGH SCHOOL DISTRICT NUMBER 228 STATEMENT OF REVENUES RECEIVED- REGULATORY BASIS ALL FUNDS FOR THE YEAR ENDED JUNE 30,2013 WITH COMPARATIVE TOTALS FOR 2012 Municipal Fire Totals Operations & Debt Retirement/ Working Tort Prevention (Memorandum On!~) Educational Maintenance Services Transeortation Social Security Cash Immunity & Safety REVENUES RECEIVED: Revenues received from local sources: Ad valorem taxes levied: Designated purposes levies $ 38,040,709 $ 4,094,960 $ 9,493,650 $ 2,025,748 $ 892,305 $ $ $ $ 54,547,372 $ 53,719,031 FICA/medicare only purposes levy 892, ,305 ~228 Total ad valorem taxes levied 38,040,709 4,094,960 9,493,650 2,025,748 1,784,610 55,439,677 54,615,259 Payments in lieu of taxes: Corporate personal property replacement taxes 696,095 54, ,556 2Q2_, 137 Total payments in lieu of taxes 696,095 54, ,556 2Q2_, 13 7 Tuition: Summer sch- tuition from pupils or parents (in state) 116, , ,074 Adult- tuition from pupils or parents (in state) 20,825 20,825 1_9,445 Total Tuition 137, ,626 ~519 Transportation fees: Regular -transp fees from pupils or parents (in state) 13,402 13,402 17,460 Regular- transp fees!rom other districts (in state) 31,833 31,833 Total transporation fees 45,235 45,235 17,460 Earnings on investments: Interest on investments 31,963 25,481 42,180 20,388 9, , , ,674 Total eanings on investments 31,963 25,481 42,180 20,388 9, , ,684 ~674 District/school activity income: Admissions- athletic 65,045 65,045 71,667 Other district/school activity revenue 15,050 15,050 1_8,345 Total district/school activity income 80,095 80,095 2Q,012 Textbook income: Rentals- regular textbooks 933, , ,887 Sales - regular textbooks ,071 Other e,_226 Total textbook income $ 934,173 $ $ $ $ $ $ $ $ 934~ ~184 (Continued) The notes to the financial statements are an integral part of this statement. 5

8 BREMEN COMMUNITY HIGH SCHOOL DISTRICT NUMBER 228 STATEMENT OF REVENUES RECEIVED- REGULA TORY BASIS ALL FUNDS FOR THE YEAR ENDED JUNE 30,2013 WITH COMPARATIVE TOTALS FOR2012 Municipal Fire Totals Operations & Debt Retirement/ Working Tort Prevention (Memorandum Only) Educational Maintenance Services TranSQOrtation Social Security Cash Immunity & Safety REVENUES RECEIVED- Continued: Revenues received from local sources- continued: Other revenue from local sources: Rentals $ $ 30,585 $ $ $ $ $ $ $ 30,585 $ 32,990 Refund of prior years' expenditures 4,955 Drivers' education fees 107,595 I 07, ,504 Proceeds from vendors' contracts 131, , ,811 Other local fees 12,189 Other local revenues 3,168 3,168 1_5,288 Total other revenue from local sources 241,910 30, ,495 ~737 Total revenues received from local sources 40,162,571 4,15\,026 9,535,830 2,091,37\ 1,848, , ,938,541 57,0\7,982 Revenues received from state sources: Unrestricted grants-in-aid: General state aid 17,789,975 17,789,975 ~346 Total unrestricted grants-in-aid 17,789,975 17,789,975 19,145,346 Restricted grants-in-aid Special education: Private facility tuition 764, , ,082 Extraordinary 982, , ,627 Personnel 746, , ,377 Orphanage - individual , ,012 Orphanage - summer 1,633 1,633 ]}_y_ 797 Total special education 2,874,292 2,874,292 2,413,895 Career and technical education: Secondary program improvement 252,\71 252, ,193 Agriculture education Total career and technical education 25?, , ,653 Bilingual education: Downstate - TPI and TBE 29,871 29,87\ ~850 Total bilingual education 29,871 29,871 ~850 State free lunch and breakfast 6,319 6,319 9,063 Driver education $ 147,570 $ $ $ $ $ $ $ $ 147,570 $ 77,638 (Continued) The notes to the financial statements are an integral part of this statement. 6

9 BREMEN COMMUNITY HIGH SCHOOL DISTRICT NUMBER 228 STATEMENT OF REVENUES RECEIVED- REGULATORY BASIS ALL FUNDS FOR THE YEAR ENDED JUNE 30,2013 WITH COMPARATIVE TOTALS FOR 2012 Municipal Fire Totals Operations & Debt Retirement! Working Tort Prevention (Memorandum Onlx) Educational Maintenance Services Transrortation Social Securitx Cash Immunity & Safety REVENUES RECEIVED- Continued: Revenues received from state sources- continued: Transportation: Regular/vocational $ $ $ $ 509,634 $ $ $ $ $ 509,634 $ 451,609 Special education 1,712,7?} 1,712,753 1,313,421 Total transportation 2,222,387 2,222,387 1,765,030 Other restricted revenue from state sources 115,783 1_1_5,783 3,911 Total restricted grants-in-aid 3,426,658 2,222,387 5,649,045 4,579,040 Total revenues received from state sources 21,216,633 2,222,387 23,439,020 23,724,386 Revenues received from federal sources: Food service: Special milk program 16,536 16,536 16,520 Total food service 16,536 1_6,536 16,520 Title 1: Low income 847, , ,939 Total Title l 847, , ,939 Special education: IDEA- flow through/low incidence 862, ,841 1,083,913 IDEA- room & board ,235 Total special education 863, ,292 1,085,148 Career and technical education- perkins: Perkins- title llie- tech prep 216, ,541 88,335 Total career and technical education- perkins 216, ,541 88,335 Stimulus program: ARRA- IDEA- part b -flow-through 100,720 ARRA- Education jobs fund 26,111 26,1 I I Total stimulus program $ 26,1 I I $ $ $ $ $ $ $ $ 26,111 $ 100,720 (Continued) The notes to the financial statements are an integral part ofthis statement. 7

10 BREMEN COMMUNITY HIGH SCHOOL DISTRICT NUMBER 228 STATEMENT OF REVENUES RECEIVED- REGULATORY BASIS ALL FUNDS FOR THE YEAR ENDED JUNE 30,2013 WITH COMPARATIVE TOTALS FOR2012 REVENUES RECEIVED- Continued: Revenues received from federal sources- continued: Title Ill- English Language Acquisition McKinney Education for Homeless Children Title II- Teacher Quality Medicaid Matching Funds- Administrative Outreach Medicaid Matching Funds- Fee-for-Service Program Other Restricted Revenue from Federal Sources I otal restncted grants-m-aid received trom the tederal gov't through the state Total revenues received from federal sources Total direct revenues received Municipal Operations & Debt Retirement/ Working Educational Maintenance Services Transportation Social Security Cash $ 24,414 $ $ $ $ $ 55, , ,867 lq2, 60 I 2,594,270 2,594,270 $ 63,973,474 $ 4,151,026 $ 9,535,830 $ 4,313,758 s 1,848,104 $ 149,484 Fire Totals Tort Prevention (Memorandum On!~) Immunity & Safety $ $ $ 24,414 $ , , , , , , ,601 4,869 2,594,270 2,193,081 2,594,270 2,193,081 $ 28 $ 127 $ 83,971,831 $ 82,935,449 The notes to the financial statements are an integral part of this statement. 8

11 BREMEN COMMUNITY HIGH SCHOOL DISTRICT NUMBER 228 STATEMENT OF EXPENDITURES DISBURSED- REGULATORY BASIS BUDGET TO ACTUAL EDUCATIONAL FUND YEAR ENDED JUNE 30,2013 WITH COMPARATIVE ACTUAL TOTALS FOR Budget Actual Actual EXPENDITURES DISBURSED: Instruction: Regular programs: Salaries $ 22,064,859 $ 22,603,137 $ 23,243,196 Employee benefits 4,096,357 3,994,292 4,391,812 Purchased services 95,780 76, ,529 Supplies and materials 777, , ,945 Capital outlay 24,000 41, ,725 Total 27,058,933 27,494,625 28,740,207 Special education programs: Salaries 5,090,000 6,381,303 6,256,879 Employee benefits 493, , ,819 Purchased services 28,000 23,101 20,712 Supplies and materials 135, , ,661 Capital outlay 10,600 9,002 65,271 Total 5,757,350 7,089,305 6,955,342 Remedial and supplemental programs k-12: Salaries 167, , ,570 Employee benefits 60,421 8,481 55,406 Purchased services 117,785 Supplies and materials 100,314 Capital outlay 56,012 Total 228, , ,087 Adult/continuing education programs: Salaries 48,615 40,639 47,107 Employee benefits 404 Total 48,615 41,043 47,107 Career and technical education programs: Salaries 89, , ,123 Employee benefits 17,251 24,940 21,166 Purchased services 20,750 21,141 12,650 Supplies and materials 279, , ,580 Capital outlay 46,600 41,073 33,537 Total $ 453,653 $ 492,507 $ 521,056 The notes to the financial statements are an integral pati of this statement. 9 (Continued)

12 BREMEN COMMUNITY HIGH SCHOOL DISTRICT NUMBER 228 STATEMENT OF EXPENDITURES DISBURSED- REGULATORY BASIS BUDGET TO ACTUAL EDUCATIONAL FUND YEAR ENDED JUNE 30,2013 WITH COMPARATIVE ACTUAL TOTALS FOR Budget Actual Actual EXPENDITURES DISBURSED -Continued: Instruction - Continued: Interscholastic programs Salaries $ 2,891,350 $ 2,538,952 $ 2,223,892 Employee benefits 24,393 Purchased services 354, , ,992 Supplies and materials 320, , ,342 Capital outlay 23,150 21,555 21,022 Total 3,589,750 3,200,312 2,900,248 Summer school: Salaries 176, , ,918 Employee benefits 1,734 Purchased services 4,000 8,171 24,268 Supplies and materials 6,100 1,900 3,963 Total 187, , ,149 Gifted: Salaries 125 Purchased services 14,500 8,576 8,582 Supplies and materials 1, Total 15,500 8,643 8,901 Driver's education programs: Salaries 154, , ,473 Employee benefits 1,747 Purchased services 38,000 25,984 Supplies and materials 4, Other 1,000 Total 197, , ,473 Bilingual programs: Salaries 14,000 11,741 Purchased services 3,100 4,889 Supplies and materials 6,404 2,677 Total $ 23,504 $ 19,307 $ The notes to the financial statements are an integral pmt of this statement. 10 (Continued)

13 BREMEN COMMUNITY HIGH SCHOOL DISTRICT NUMBER 228 STATEMENT OF EXPENDITURES DISBURSED- REGULATORY BASIS BUDGET TO ACTUAL EDUCATIONAL FUND YEAR ENDED JUNE 30,2013 WITH COMPARATIVE ACTUAL TOTALS FOR 2012 EXPENDITURES DISBURSED- Continued: Instruction - Continued: Private tuition: Budget 2013 Actual Special education programs k-12 $ 2,800,000 $ 2,734, Actual $ 2,204,251 Total 2,800,000 2,734,104 2,204,251 Total Instruction 40,359,576 41,652,533 42,585,821 Support Services: Pupils: Attendance and social work : Purchased services 3,195 Total 3,195 Guidance services: Salaries 2,847,500 3,192,998 Employee benefits 613, ,670 Purchased services 6,195 Supplies and materials 11,500 5,142 3,112, , ,256 Total 3,478,945 3,772,810 3,719,694 Health services: Salaries 306, ,165 Employee benefits 64,700 67,462 Purchased services 6,136 Supplies and materials 3,800 3, ,264 56,536 5,257 3,718 Total 375, , ,775 Psychological services: Salaries 528, ,735 Employee benefits 93, ,420 Purchased services 2,750 1, ,296 74,610 1,892 Total $ 624,178 $ 655,682 $ 534,798 The notes to the financial statements are an integral part of this statement. 11 (Continued)

14 BREMEN COMMUNITY HIGH SCHOOL DISTRICT NUMBER 228 STATEMENT OF EXPENDITURES DISBURSED- REGULATORY BASIS BUDGET TO ACTUAL EDUCATIONAL FUND YEAR ENDED JUNE 30, 2013 WITH COMPARATIVE ACTUAL TOTALS FOR 2012 Budget 2013 Actual EXPENDITURES DISBURSED- Continued: Support Services - Continued: Pupils - Continued: Other suppoti services- pupil: Salaries $ 289,000 $ 309,180 Purchased services 4,000 3,017 Supplies and materials 20,700 23,651 Total 313, ,848 Total Pupils 4,791,823 5,148,899 Instructional staff: Improvement of instruction services: Salaries 1,788,663 1,764,979 Employee benefits 196, ,664 Purchased services 480, ,953 Supplies and materials 60,300 63,534 Capital outlay 4, Non-capitalized equipment 68, , Actual $ 289,371 4,287 21, ,897 4,936,164 1,613, , ,844 40,133 1,821 Total 2,598,062 2,493,230 2,178,323 Educational media services: Salaries 1,194,700 1 '164,886 Employee benefits 234, ,386 Purchased services 2, Supplies and materials 30,600 28,792 Total I,461,600 1,419,400 1,174, ,860 4,820 35,918 1,420,199 Assessment and testing: Salaries Purchased services 2, Supplies and materials 1,819 Total 2,000 2,469 29,590 12,899 6,659 49,148 Total Instructional Staff $ 4,061,662 $ 3,915,099 $ 3,647,670 The notes to the financial statements are an integral pati of this statement. 12 (Continued)

15 BREMEN COMMUNITY HIGH SCHOOL DISTRICT NUMBER 228 STATEMENT OF EXPENDITURES DISBURSED- REGULATORY BASIS BUDGET TO ACTUAL EDUCATIONAL FUND YEAR ENDED JUNE 30, 2013 WITH COMPARATIVE ACTUAL TOTALS FOR 2012 Budget 2013 Actual EXPENDITURES DISBURSED- Continued: Support Services - Continued: General Administration: Board of education services: Salaries $ - $ 16,372 Employee benefits 723, ,148 Purchased services 813, ,849 Supplies and materials 15,000 17,879 Other 66,000 65,990 $ 2012 Actual 721, ,622 16,586 66,367 Total 1,617,000 1,332,238 1,410,132 Executive administration services: Salaries 567, ,363 Employee benefits 68, ,477 Purchased services 31,500 31,092 Supplies and materials 14,500 7,510 Capital outlay 3,000 3, ,991 60,412 24,212 9,741 2,644 Total 684, , ,000 Tort immunity services: Employee benefits 458, ,434 Purchased services 290, ,640 Other 5,000 (15,777) 453, Total 753, , ,977 Total General Administration 3,054,925 2,675,424 2,531 '1 09 School administration: Office of the principal services: Salaries 2,602,100 2,432,783 Employee benefits 386, ,132 Purchased services 91,200 62,499 Supplies and materials 107,800 87,134 2,553, ,176 61,838 90,396 Total $ 3,188,000 $ 2,849,548 $ 3,081,449 The notes to the financial statements are an integral part of this statement. 13 (Continued)

16 BREMEN COMMUNITY HIGH SCHOOL DISTRICT NUMBER 228 STATEMENT OF EXPENDITURES DISBURSED- REGULATORY BASIS BUDGET TO ACTUAL EDUCATIONAL FUND YEAR ENDED JUNE 30,2013 WITH COMPARATIVE ACTUAL TOTALS FOR 2012 Budget 2013 Actual EXPENDITURES DISBURSED- Continued: Support Services - Continued: School administration - Continued: Other support services- school administration: Salaries $ l,065,000 $ 1,193,781 Employee benefits 15,161 Total 1,065,000 1,208,942 Total School Administration 4,253,000 4,058, Actual $ 1,078,566 1,078,566 4,160,015 Business: Direction of business support services: Salaries 145, ,561 Employee benefits 8,925 10,826 Total 153, , ,561 10, ,919 Fiscal services: Salaries 370, ,661 Employee benefits 65, ,158 Purchased services 40,000 38,140 Supplies and materials 10, Total 485, , ,612 57,505 12,000 8, ,353 Operation and maintenance of plant services: Salaries 3,850,400 3,906,703 Employee benefits 944, ,713 Purchased services 611, ,496 Total 5,406,650 5,348,912 3,911, , ,224 5,413,576 Food services: Supplies and materials 1,250 8,429 Total $ 1,250 $ 8,429 $ The notes to the financial statements are an integral pati of this statement. 14 (Continued)

17 BREMEN COMMUNITY HIGH SCHOOL DISTRICT NUMBER 228 STATEMENT OF EXPENDITURES DISBURSED- REGULATORY BASIS BUDGET TO ACTUAL EDUCATIONAL FUND YEAR ENDED JUNE 30,2013 WITH COMPARATIVE ACTUAL TOTALS FOR Budget Actual Actual EXPENDITURES DISBURSED - Continued: Support Services - Continued: Business -Continued: Internal services: Purchased services $ 159,000 $ 99,990 $ 147,276 Capital outlay 162,973 Total 159, , ,276 Total Business 6,206,525 6,291,618 6,167,124 Central: Planning, research, development and evaluation services: Purchased services Total 9,800 Data processing services: Salaries 94, ,541 92,026 Employee benefits 8,400 25,590 4,808 Purchased services 58,500 28,664 36,546 Supplies and materials 11,000 4,250 2,104 Capital outlay 405, ,149 1,337 Total 576, , ,821 Total Central 586, , ,821 Other Support Services: Purchased services 176, ,234 5,380 Total Other Support Services 176, ,234 5,380 Total Support Services 23,130,700 22,617,958 21,584,283 Community Services: Salaries 38,003 31,800 54,390 Employee benefits 110 Purchased services 2,000 1,676 Supplies and materials 8,500 9,392 Total Community Services $ 48,503 $ 42,978 $ 54,390 The notes to the financial statements are an integral part of this statement. 15 (Continued)

18 BREMEN COMMUNITY HIGH SCHOOL DISTRICT NUMBER 228 STATEMENT OF EXPENDITURES DISBURSED- REGULATORY BASIS BUDGET TO ACTUAL EDUCATIONAL FUND YEAR ENDED JUNE 30,2013 WITH COMPARATIVE ACTUAL TOTALS FOR 2012 Budget 2013 Actual EXPENDITURES DISBURSED- Continued: Payments to other districts and governmental units (in-state): Special education programs: Other programs - tuition: $ 5,500,000 $ 5,853,026 Total 5,500,000 5,853, Actual $ 4,745,181 4,745,181 Payments to other districts and governmental units (in-state): Other programs - tuition: Other 30,000 53,340 Total 30,000 53,340 Total payments to other districts and governmental units 5,530,000 5,906,366 18,465 18,465 4,763,646 Total Expenditures Disbursed $ 69,068,779 $ 70,219,835 $ 68,988,140 The notes to the financial statements are an integral part of this statement. 16

19 BREMEN COMMUNITY HIGH SCHOOL DISTRICT NUMBER 228 STATEMENT OF EXPENDITURES DISBURSED- REGULATORY BASIS BUDGET TO ACTUAL OPERATIONS AND MAINTENANCE FUND YEAR ENDED JUNE 30, 2013 WITH COMPARATIVE ACTUAL TOTALS FOR 2012 Budget 2013 Actual EXPENDITURES DISBURSED: Support Services: Business: Facilities acquisition and construction: Purchased services $ - $ Capital outlay 2,000,000 1,406,114 Total 2,000,000 I,406, Actual $ 4,777 2,487,676 2,492,453 Operation and maintenance of plant services: Purchased services 754, ,125 Supplies and materials I,467,000 I, 140,875 Capital outlay 14,500 19,935 Total 2,236,290 I,805,935 Total Business 4,236,290 3,212,049 Total Support Services 4,236,290 3,212,049 Total Expenditures Disbursed $ 4,236,290 $ 3,212, ,360 1,724,222 29,872 2,102,454 4,594,907 4,594,907 $ 4,594,907 The notes to the financial statements are an integral part of this statement. 17

20 BREMEN COMMUNITY HIGH SCHOOL DISTRICT NUMBER 228 STATEMENT OF EXPENDITURES DISBURSED- REGULATORY BASIS BUDGET TO ACTUAL DEBT SERVICES FUND YEAR ENDED JUNE 30,2013 WITH COMPARATIVE ACTUAL TOTALS FOR 2012 Budget 2013 Actual EXPENDITURES DISBURSED: Debt Services: Interest on long-term debt $ 939,516 $ 938,516 Payment of principal on long-term debt 8,855,000 8,855,000 Other 1, Actual $ 1,287,061 8,595,000 1,050 Total Debt Services 9,794,516 9,794,566 9,883, Ill Total Expenditures Disbursed $ 9,794,516 $ 9,794,566 $ 9,883,111 The notes to the financial statements are an integral pati of this statement. 18

21 BREMEN COMMUNITY HIGH SCHOOL DISTRICT NUMBER 228 STATEMENT OF EXPENDITURES DISBURSED- REGULATORY BASIS BUDGET TO ACTUAL TRANSPORTATION FUND YEAR ENDED JUNE 30, 2013 WITH COMPARATIVE ACTUAL TOTALS FOR 2012 Budget 2013 Actual EXPENDITURES DISBURSED: Support Services: Business - Pupil transportation services: Salaries $ - $ Purchased services 2,367,200 2,333, Actual $ 41,552 1,969,858 Total 2,367,200 2,333,129 2,011,410 Total Support Services 2,367,200 2,333,129 2,011,410 Payments to other districts and governmental units: Payments to other districts and governmental units (in-state): Special education programs: Purchased services 1,400,000 1,801,733 I,446,134 Total 1,400,000 1,801,733 1,446,134 Total payments to other distncts and governmental umts (mstate): 1,400,000 1,801,733 1,446,134 Total payments to other districts and governmental units 1,400,000 1,801,733 1,446,134 Total Expenditures Disbursed $ 3,767,200 $ 4,134,862 $ 3,457,544 The notes to the financial statements are an integral pmi of this statement. 19

22 BREMEN COMMUNITY HIGH SCHOOL DISTRICT NUMBER 228 STATEMENT OF EXPENDITURES DISBURSED- REGULATORY BASIS BUDGET TO ACTUAL MUNICIPAL RETIREMENT/SOCIAL SECURITY FUND YEAR ENDED JUNE 30,2013 WITH COMPARATIVE ACTUAL TOTALS FOR Budget Actual Actual EXPENDITURES DISBURSED: Instruction -employee benefits: Regular programs $ 348,000 $ 338,413 $ 361,291 Special education programs 307, , ,524 Remedial and supplemental programs - k-12 3,400 10,657 14,611 Adult/continuing education programs 1, ,013 Career and technical education programs 3,302 2,289 2,589 Interscholastic programs 59,200 95,979 68,351 Summer school programs 8,090 2,755 3,145 Driver's education programs 543 2,129 2,197 Bilingual programs 2,188 Total Instruction 730, , ,721 Support Services: Pupils -employee benefits: Guidance services 162, , ,912 Health services 11,961 15,869 15,759 Psychological services 6,550 7,935 6,646 Other 60,000 57,676 52,112 Total Pupils 240, , ,429 Instructional Staff- employee benefits: Improvement of instruction services 41,711 68,108 44,024 Educational media services 133, , ,635 Assessment & testing 3,783 4,617 Total Instructional Staff 179, , ,276 General Administration -employee benefits: Board of education services 3,200 3,287 3,060 Executive administration services 102,000 50, ,222 Total General Administration 105,200 53, ,282 School Administration -employee benefits: Office of the principal services 185, , ,821 Other 13,233 17,310 15,638 Total School Administration $ 198,233 $ 217,033 $ 198,459 The notes to the financial statements are an integral part of this statement. 20 (Continued)

23 BREMEN COMMUNITY HIGH SCHOOL DISTRICT NUMBER 228 STATEMENT OF EXPENDITURES DISBURSED- REGULATORY BASIS BUDGET TO ACTUAL MUNICIPAL RETIREMENT/SOCIAL SECURITY FUND YEAR ENDED JUNE 30,2013 WITH COMPARATIVE ACTUAL TOTALS FOR 2012 Budget 2013 Actual EXPENDITURES DISBURSED - Continued: Support Services - Continued: Business- employee benefits: Direction of business suppmi services $ 2,100 $ 2,130 Fiscal services 63, ,269 Operation & maintenance of plant services 625, ,189 Pupil transportation services Total Business 690, , Actual $ 2,125 66, , ,565 Central- employee benefits: Data processing services 16,700 22,278 Total Central 16,700 22,278 16,509 16,509 Total Suppmi Services I,430,638 I,562,318 1,469,520 Community Services 2,000 2,274 Total Expenditures Disbursed $ 2,163,443 $ 2,413, $ 2,280,827 The notes to the financial statements are an integral part of this statement. 21

24 BREMEN COMMUNITY HIGH SCHOOL DISTRICT NO. 228 NOTES TO FINANCIAL STATEMENTS June 30, 2013 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies of the District conform to the regulatory provisions prescribed by the Illinois State Board of Education, which is a comprehensive basis of accounting other than accounting principles accepted in the United States of America, as applicable to local governmental units of this type. A. The Reporting Entity The District includes all funds and account groups of its governmental operations that are controlled by or dependent upon the District as determined on a basis of financial accountability. Financial accountability includes appointment of the organization's governing body, imposition of will, and fiscal dependency. The accompanying financial statements include only those funds and account groups of the District as there are no other organizations for which it has financial accountability. Joint Venture- The District is also a member of the following organizations: - Southwest Cook County Cooperative Association for Special Education (See Note 1 0) - Career Development System (See Note 11) 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. District resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The following funds and account groups are used by the District: Governmental Funds Governmental Funds are those through which most governmental functions of the District are financed. The acquisition, use and balances of the District's expendable financial resources and the related liabilities (arising from cash transactions) are accounted for through governmental funds. The Educational Fund and the Operations and Maintenance Fund are the general operating funds of the District. They are used to account for all financial resources except those required to be accounted for in another fund. 22

25 BREMEN COMMUNITY HIGH SCHOOL DISTRICT NO. 228 NOTES TO FINANCIAL STATEMENTS June30,2013 The Debt Services Fund accounts for the accumulation of resources for, and the payment of general long-term debt principal, interest and related costs. The Transportation Fund and the Illinois Municipal Retirement/Social Security Fund are used to account for cash received from specific sources (other than those accounted for in the Debt Services Fund, Capital Projects Fund, or Fiduciary Funds) that are legally restricted to cash disbursements for specified purposes. The Working Cash Fund accounts for financial resources held by the District to be used for temporary interfund loans to other funds. The Tort Immunity Fund accounts for financial resources held by the District to be used for tort immunity and tort judgment purposes. The Fire Prevention and Safety Fund accounts for cash received from tax levies and bond proceeds for fire prevention, safety, energy conservation or school security purposes, and the expenditures related thereto. Fiduciary Funds Fiduciary Funds are used to account for assets held by the District in a trustee capacity or as an agent for individuals, private organizations, other governments or other funds. The Agency Funds include Student Activity Funds and Convenience Accounts. They account for assets held by the District as an agent for the students, teachers, and other entities. 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. 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. Their reported fund balance (net current assets) is considered a measure of "available spendable resources." Governmental Fund operating statements present increases (revenues received and other financing sources) and decreases (expenditures disbursed 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. 23

26 BREMEN COMMUNITY HIGH SCHOOL DISTRICT NO. 228 NOTES TO FINANCIAL STATEMENTS June 30, 2013 General Fixed Assets and Long-Term Debt Account Groups The accounting and reporting treatment applied to the fixed assets associated with a fund are determined by its measurement focus. Fixed assets used in individual fund operations are accounted for in the General Fixed Assets Account Group, rather than in the individual funds. Long-term liabilities expected to be financed from individual funds are accounted for in the General Long-Term Debt Account Group, not in the individual funds. The account groups are not "funds". They are concerned only with the measurement of financial position. They are not involved with measurement of results of operations. C. Basis of Accounting Basis of accounting refers to when revenues received and expenditures disbursed are recognized in the accounts and how they are reported in 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 received. In the same manner expenditures are recognized and recorded upon the disbursement of cash. Assets of a fund are only recorded when a right to receive cash exists which arises from a previous cash transaction. Liabilities of a fund, similarly, result from previous cash transactions. 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. D. Budgets and Budgetary Accounting Annual budgets for all Governmental Funds are prepared on the cash basis of accounting, which is the same basis that is used in financial reporting. This allows for comparability between budget and actual amounts. This is an acceptable method in accordance with Chapter 105, Section of the Illinois Compiled Statutes. 24

27 BREMEN COMMUNITY HIGH SCHOOL DISTRICT NO. 228 NOTES TO FINANCIAL STATEMENTS June30,2013 The District follows these procedures in establishing the budgetary data reflected in the financial statements: 1. The Administration submits to the Board of Education a proposed operating budget for the fiscal year commencing July 1. The operating budget includes proposed expenditures and the means of financing them. 2. Public hearings are conducted and the proposed budget is available for inspection to obtain taxpayer comments. 3. Prior to October 1, the budget is legally adopted through passage of a resolution. The budget, which was not amended, was adopted on September 18, Management is authorized to transfer budget amounts, provided funds are transferred between the same function and object codes. The Board of Education is authorized to transfer up to a legal level of 1 0% of the total budget between functions within any fund; however, any revisions that alter the total expenditures of any fund must be approved by the Board of Education following the public hearing process mandated by law. 5. Formal budgetary integration is employed as a management control device during the year for all governmental funds. 6. The District has adopted a legal budget for all its Governmental Funds. Total actual expenditures for the governmental funds may not legally exceed the total budgeted for such funds. However, under the State Budget Act expenditures may exceed the budget if additional resources are available to finance such expenditures. 7. The budget lapses at the end of each fiscal year. (All appropriations lapse at year end.) E. Cash and Investments The Bremen Township School Treasurer is the official custodian of money for the school districts and joint agreements within the township, including the District, as prescribed by Chapter 105, Section 5, Article 8 ofthe Illinois Compiled Statutes. The Township School Treasurer's Office, a legally separate entity under the oversight of the Bremen Township Trustees of Schools, pools the districts' money and invests, on the districts' behalf, in a cash and investment portfolio. 25

28 BREMEN COMMUNITY HIGH SCHOOL DISTRICT NO. 228 NOTES TO FINANCIAL STATEMENTS June 30, 20 I 3 The Township School Treasurer's Office has adopted a formal written investment and cash management policy. The policy provides that available funds be invested to the maximum extent possible at the highest possible rates obtainable at the time of investment in conformance with applicable State statutes and written administrative guidelines. Although current statutes do not require collateralization of deposits and investments in amounts which exceed insurance coverage, the investment policy of the Township School Treasurer's Office does provide for the Township School Treasurer to request collateralization in certain situations. The Township Trustees of Schools approve the financial institutions in which investments are made. Due to the nature of the pooled system, specific investment and related collateralization detail for each individual district is not available. 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 cost or amortized cost of the underlying deposits and investments of the pool. F. General Fixed Assets General Fixed Assets have been acquired for general governmental purposes. At the time of purchase, assets are recorded as disbursements in the individual funds 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. The District has not maintained cumulative detailed property records for all fixed assets included in the General Fixed Assets Account Group. No depreciation has been provided on fixed assets. G. Total Memorandum Only The "Total Memorandum Only" column represents the aggregation (by addition) of the lineitem amounts reported for each fund type and account group. No consolidations or other eliminations were made in arriving at the totals; thus, they do not present consolidated information. These totals are presented only to facilitate financial analysis and are not intended to reflect the financial position or results of operations of the District as a whole. 26

29 BREMEN COMMUNITY HIGH SCHOOL DISTRICT NO. 228 NOTES TO FINANCIAL STATEMENTS June 30, 2013 NOTE 2. PROPERTY TAXES Property taxes are levied each year on all taxable real property located in the District on or before the last Tuesday in December. The adoption date for the 2012 tax levy was December 18th, Taxes attach as an enforceable lien on property on January 1 and are due and payable in two installments. The first installment is due on March 1. The due date of the second installment varies and can occur in September, October, or November. The first installment is an estimated bill, and is 55% of the prior year's tax bill. The second installment is based on the current levy, assessment and equalization, and any changes from the prior year will be reflected in the second installment bill. The following are the actual rates levied per $100 of assessed valuation: Maximum Actual 2012 Levy 2012 Levy 2011 Levy Educational Operations and Maintenance Bond and Interest Transportation Municipal Retirement Social Security Total NOTE 3. CASH AND INVESTMENTS The District is allowed to invest in securities as authorized by the Illinois Compiled Statutes, Chapter 30, Sections 235/2 and 235/6; and Chapter 105, Section 5/8-7. All deposits and investments of the District, except for imprest and activity accounts, are maintained in the external cash and investment pool managed by the Bremen Township School Treasurer's Office. The Township School Treasurer's cash and investment pool is not a registered investment company, and is not rated by a nationally recognized statistical rating organization. However, the underlying securities which make up the Township School Treasurer's portfolio are rated. Information regarding the credit ratings of the pooled investments of the Township School Treasurer is available in the Township School Treasurer's financial statements. The weighted average maturity of the Township School Treasurer's cash and investment portfolio as of June 30, 2013 was 1.33 years. 27

30 BREMEN COMMUNITY HIGH SCHOOL DISTRICT NO. 228 NOTES TO FINANCIAL STATEMENTS June 30,2013 District 228's total cash and investments at June 30,2013 consisted ofthe following: District 228's share of deposits and investments in the Township School Treasurer's cash and investments pool Petty cash and imprest account (maintained by the District) Student activity accounts (maintained by the District) Funds on deposit to pay health insurance claims (maintained by the District) Total $29,758,481 90, , ,543 $31,098,511 Custodial credit risk is the risk that in the event of a bank failure, the District's deposits may not be returned to it. As of June 30,2013, $967,808 of the District's bank balances of$1,367,775 was exposed to custodial credit risk as follows: U nco llateralized $ 967,808 NOTE 4. CHANGES IN LONG-TERM DEBT The following is a summary of long-term debt transactions of the District for the year ended June 30, 2013: Balance Balance Due within July 1, 2012 Additions Deletions June 30,2013 one year Bonds Payable $23,755,000 $ - $8,420,000 $15,335,000 $8,835,000 Debt Certificates 435, , Total Long-Term Debt $24,190,000 $ - $8,855,000 $15,335,000 $8,835,000 Long-term debt at June 30, 2013 is comprised of the following: Limited tax working cash bonds issued for $2,200,000, dated January 1, 2004, provide for the retirement of principal on December 1, 2012 and 2013, and interest payable on June 1 and December 1 of each year. Interest rates on the outstanding bonds range from 3.6% to 4.0%. Limited tax working cash bonds issued for $6,500,000, dated June 15, 2004, provide for the serial retirement of principal on December 1, 2014 through 2016, and interest payable on June 1 and December 1 of each year. Interest rates on the outstanding bonds range from 4.2% to 4.875%. Limited tax working cash and refunding bonds issued for $31,480,000, dated March 10, 2010, provide for the serial retirement of principal on December 15, 20 l 0 through 2013, and interest payable on June 15 and December 15 of each year. The interest rates on the outstanding bonds range from 3.0% to 5.0%. 28