OAKTON COMMUNITY COLLEGE COMMUNITY COLLEGE DISTRICT NO. 535 Des Plaines, Illinois

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2 Des Plaines, Illinois COMPREHENSIVE ANNUAL FINANCIAL REPORT Fiscal Years Ended June 30, 2015 and 2014 Prepared by: Business and Finance Office Robert Nowak Vice President for Business and Finance Karen Epps Director of Budget and Accounting Services

3 COMPREHENSIVE ANNUAL FINANCIAL REPORT Fiscal Years Ended June 30, 2015 and 2014 TABLE OF CONTENTS Page(s) Table of Contents... i-iii INTRODUCTORY SECTION President s Letter... 1 Transmittal Letter Principal Officials Organization Chart Certificate of Achievement for Excellence in Financial Reporting FINANCIAL SECTION Independent Auditor s Report Management s Discussion and Analysis (required supplementary information) Basic Financial Statements: Statements of Net Position Statements of Revenues, Expenses and Changes in Net Position Statements of Cash Flows Component Unit: Statements of Financial Position Statements of Activities Notes to Financial Statements Required Supplementary Information Schedule of Employer Contributions and Funded Status - Other Postemployment Benefit Plans Schedule of Changes in the Employer s Net Pension Liability and Related Ratios State Universities Retirement System of Illinois i Page

4 COMPREHENSIVE ANNUAL FINANCIAL REPORT Fiscal Years Ended June 30, 2015 and 2014 TABLE OF CONTENTS (continued) STATISTICAL SECTION (Unaudited) Table Page(s) Statistical Section Net Position By Component Changes in Net Position Assessed Value and Actual Value of Taxable Property Property Tax Rates - Direct and Overlapping Governments Principal Property Taxpayers Property Tax Levies and Collections Enrollment, Tuition and Fee Rates, Credit Hours Claimed and Tuition and Fee Revenue Direct and Overlapping Bonded Debt Legal Debt Margin Information Ratios of Outstanding Debt by Type Demographic and Economic Information Principal Employers Full-Time Equivalent Employees and Employee Headcount by Employee Group Capital Asset Statistics SPECIAL REPORTS SECTION Schedule Page(s) Supplemental Financial Information Combining Schedule of Net Position, by Subfund Combining Schedule of Revenues, Expenses and Changes in Net Position, by Subfund Schedule of Management Information Schedule of Expenses by Function and Object ii Page

5 COMPREHENSIVE ANNUAL FINANCIAL REPORT Fiscal Years Ended June 30, 2015 and June 30, 2014 TABLE OF CONTENTS (continued) SPECIAL REPORTS SECTION (continued) Schedule Page(s) Uniform Financial Statements Certification of Chargeback Reimbursement Illinois Community College Board Grants - Financial Compliance Section Independent Auditor s Report on Compliance with State Requirements for Career and Technical Education - Program Improvement Grant and State Adult Education and Family Literacy Restricted Grant Career and Technical Education - Program Improvement Grant: Balance Sheet Statement of Revenues, Expenditures and Changes in Fund Balance State Adult Education and Family Literacy - Restricted Grant Program Balance Sheet Statement of Revenues, Expenditures and Changes in Fund Balances Expenditure Amounts and Percentages for ICCB Grant Funds Only Notes to Financial Statements - State Grants Programs Reconciliation of Semester Credit Hours Independent Accountant s Report on Schedule of Enrollment Data and Other Bases Upon Which Claims are Filed and Supporting Reconciliation of Semester Credit Hours Schedule of Enrollment Data and Other Bases Upon Which Claims are Filed Total Semester Credit Hours by Term, Student Residency Verification Process, and Prior Year Equalized Assessed Valuation Reconciliation of Total Semester Credit Hours iii Page

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9 Oakton, which serves a diverse population of approximately 436,000 is located in northern Cook County approximately 20 miles northwest of Chicago s Loop. Lake Michigan serves as District 535 s eastern border and the Lake-Cook County line as its northern border. O Hare International Airport sits just outside the southwest corner of the district. District 535 includes the townships of Evanston, Maine, New Trier, Niles, and Northfield, as well as one square mile of Wheeling, and small portions of Norwood and Leyden. OAKTON S MISSION, VALUES, AND GOALS Oakton's mission is guided by the Illinois Public Community College Act, which established the statewide community college system. Simply stated, that mission is to serve the post-secondary educational needs of the residents of District 535. Oakton s mission is as follows: We are the community's college. We are dedicated, first, to excellence in teaching and learning. We challenge our students to experience the hard work and satisfaction of learning that leads to intellectual growth and support them academically, emotionally and socially. We encourage them to entertain and question ideas, think critically, solve problems and engage with other cultures, with one another and with us. We expect our students to assume responsibility for their own learning, to exercise leadership and to apply ethical principles in their academic, work and personal lives. We demand from ourselves and our student s tolerance, fairness, responsibility, compassion and integrity. We are a community of learners. We provide education and training for and throughout a lifetime. We seek to improve and expand the services we offer in support of the people in the communities we serve. We promote a caring community of staff and faculty members, students, administrators and trustees who, in keeping with our values, work together to fulfill our mission. 3 Page

10 We are a changing community. We recognize that change is inevitable and that education must be for the future. We respond to change informed by our values and our responsibility to our students and our communities. We challenge our students to be capable global citizens, guided by knowledge and ethical principles, who will shape the future. FINANCIAL INFORMATION Oakton maintains its accounts and prepares its financial statements in accordance with accounting principles generally accepted in the United States of America as set forth by Governmental Accounting Standard Board (GASB), National Association of College and University Business Officers (NACUBO) and the Illinois Community College Board (ICCB). The ICCB requires accounting by funds to ensure that limitations and restrictions on resources can be easily accounted for. Oakton s financial records are maintained on the accrual basis of accounting whereby all revenues are recorded when earned and all expenses are recorded when they have been reduced to a legal obligation to pay. The notes to the financial statements expand and explain the financial statements and the accounting principles applied. Internal Controls: Management of Oakton is responsible for establishing and maintaining internal controls designed to protect the assets of Oakton, prevent loss from theft or misuse, and provide that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with accounting principles generally accepted in the United States of America. These internal controls are designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. Budgeting Controls: Budgetary controls maintained by Oakton ensure compliance with legal provisions embodied in the annual appropriated budget approved by the Oakton Board of Trustees. 4 Page

11 The annual budget includes the following sub-fund groups. Fund Education Operations and Maintenance of Plant Auxiliary Enterprises Liability, Protection, and Settlement Audit Social Security/Medicare Restricted Purposes Working Cash Operations and Maintenance (Restricted) Bond and Interest The level of budgetary control (that is, the level at which expenditures cannot exceed the appropriated amount) is established for each individual fund. Oakton also maintains an encumbrance accounting system as one technique of accomplishing budgetary control. Encumbered amounts lapse at year-end and are re-authorized with appropriate administrative approvals - as part of the following year s budget when funds are available. As demonstrated by the statements and schedules included in this report s financial section, Oakton continues to fulfill its responsibility of sound financial management. LOCAL ECONOMY State of Illinois: The Illinois economy continues to show signs of improvement at a rate that nevertheless lags the nation. The unemployment rate as of June 2015 for Illinois (5.9 percent) lags the Nation (5.3 percent). According to the Illinois Department of Employment Security, Illinois added 50,100 non-farm jobs since June 30 of the previous year including professional and business services (16,400); educational and health services (14,000); trade, transportation and utilities (12,400) offset by declines in manufacturing, other services, and financial activities. Until very recently, the State of Illinois took measures to improve its financial condition including pension, Medicaid, education, unemployment and workers compensation reforms. However, with the current uncertain State budget, Oakton remains concerned about future funding from the State. Federal funding from the State continues to remain flat for the fourth consecutive year. District 535: District residents are primarily upper middle class and well-educated, and the District s assessed property values are strong. The District incorporates three of the top five Illinois municipalities as ranked by a per 5 Page

12 capita income: According to the U.S. Census Bureau, the per capita income in the past 12 months (in 2013 inflation-adjusted dollars) for the Village of Glencoe, the Village of Kenilworth, and the Village of Winnetka is $94,605, $96,525, and $100,440, respectively. The District s estimated unemployment rate is 5.4 percent, which compares favorably with the Illinois rate and is comparable with the national unemployment rate. This is attributable to the higher education levels attained by our District s population and the industries that employ them including professional, education, health care and sciencerelated. With the Village of Skokie, the City of Des Plaines, the Village of Glenview, and the City of Evanston representing approximately fifty-six percent of the District s population, the education levels, as reported by the three year estimated U.S. Census, attained by their constituents are as follows: The percent of the population aged 25 and older that has at least a bachelor s degree (or higher) living in the Village of Skokie, the City of Des Plaines, Village of Glenview, and the City of Evanston is 46.7 percent, 33.6 percent, 59.1 percent, and 66 percent, respectively, or a combined 51.4 percent. This compares with a 28.8 percent for the State of Illinois. The District s tax base includes a range of property types, including residential (73.07 percent) commercial (17.62 percent), industrial (9.25 percent), and other (.01 percent). The related equalized assessed value for the 2014 tax levy is $19,191,923,740, and, the final 2013 equalized assessed value was $18,908,599,219. The 2013 equalized assessed value (latest for which detail is available) includes the following property values; residential ($13.82 billion); commercial ($3.33 billion), industrial ($1.75 billion); and other ($.01 billion). The 2014 equalized assessed value represents an overall increase of 1.50 percent from the previous year. The financial implication to Oakton as a result of the increase was minimal if not non-existent due to the tax cap which also has a guarantee allowing districts to levy at the previous year s level plus inflation not to exceed five percent. Property Taxes: Property taxes are one of three major funding sources for Oakton. The Illinois Public Act 89-1 places limitations on the annual growth of property tax collections of most local governments, including Oakton. But based on the current property tax funding formula, Oakton does not expect any reduction in property tax revenue due to the reduction in assessed property values within our district. However, Oakton has the capacity to meet any such revenue shortfall through increased tuition rates and prudent spending reductions. The following table illustrates Oakton's property tax levy rates from (the last year for which data is available). 6 Page

13 Fund Type Current: Education $ $ $ Operations and Maintenance Liability, Protection and Settlement Audit Social Security/Medicare Debt: Bond and interest Total $ $ $ Levy Rates (Per $100 of assessed valuation) Oakton's property tax collection for tax levy years from 2005 to 2013 is percent. The District s most recent estimated assessed property tax value for the 2014 tax year is $19,191,923,740. PROSPECTS FOR THE FUTURE We believe that the key to Oakton s long-term growth and success is to continue to effectively meet the demand for affordable, readily accessible, high-quality educational programs. Oakton s sustainability will be driven by a number of factors, including our focus on student persistence, our understanding of enrollment patterns, Oakton s financial strength, our investment in expanding student services, and our commitment to excellence in student learning. Despite the effects of the recession on the local economy as previously discussed, Oakton has financially positioned itself over the years to absorb any financial shortcomings in State funding or property taxes. This is mainly attributable to increased enrollments, sound financial planning, budget performance, and a healthy property tax base. Oakton s net position increased by $3.1 million from the previous fiscal year resulting in a return on net position of 1.74 percent which exceeded the reported Consumer Price Index (CPI) of 0.12% for all urban consumers for the period ending June 30, In addition, Oakton is committed to the legislative process, and will continue to work with State leaders to inform them of the crucial role of community colleges play in Illinois economic and social well-being. Enrollment: Oakton s enrollment patterns are affected by the economy and are somewhat similar to state and national enrollment trends at other community colleges. As noted in the table below, Oakton s 2015 credit hours have declined by 3.20 percent from the previous year. 7 Page

14 Enrollment Fiscal Year Headcount % Change Credit Hrs % Change , % 206, % , % 213, % , % 223, % , % 227, % , % 232, % Oakton regularly communicates with leaders and businesses in the district to assess educational needs. Based on this feedback and larger trends, Oakton adapts its credit and non-credit offerings. Enrollment at Oakton and other Chicago area community colleges is significantly impacted by high school enrollment and economic trends. It is Oakton s experience that, as the economy improves, fewer students enroll at Oakton. Oakton believes in delivering a high quality education at a low cost to our students. Accordingly, the cost of Oakton s tuition continues to remain low relative to our peer groups. Expanding Access to Educational Programs and Services: In 2011, Oakton began implementing Building Together, a five-year Facilities Master Plan (the Plan) that creates a rational and orderly pathway for facilities improvements. In accordance with our strategic plan Connecting What Matters, Building Together fosters Student Success, Academic Excellence and Connected Communities. In particular, the Plan will provide: state of the art classrooms and labs, areas enabling students to study and build community, and infrastructure mindful of Oakton s impact on the environment. Building Together was developed in collaboration with front-line student service employees, administrators, faculty, students, and Legat Architects. It takes into consideration a range of pillars for student success: increasing student learning and attainment, improving the learning environment, enhancing student life, updating technology, and minimizing disruption to existing classes, supporting teaching, and expanding instructional tools for new learning pedagogies. The Plan will help prepare our students to meet increased demands for qualified technicians, health career professionals, and STEMrelated technology in science, technology, engineering, and math. Oakton originally projected that it would invest approximately $68.5 million in its Facilities Master Plan. Plan components included construction of a new Science and Health Careers Center ($39 million), classroom upgrades ($3.5 million), the creation of a centralized Enrollment Center ($3.4 million) and Student Center ($1.9 million) at the Des Plaines campus, other student-related remodeling ($3.7 million), and a range of infrastructure improvements ($17 million). Master Plan funding sources included the issuance of long term 8 Page

15 debt ($40 million), use of Oakton s net position reserves ($20 million), student activity fee aid reserves ($3 million), state grants ($2 million), federal grants ($1 million), and private grants ($2.5 million). See capital assets section below for discussion on 2015 capital expenditures. During the year ended June 30, 2015, the main component of Oakton s Master Plan, the $43 million Science and Health Careers Center, was substantially completed. In January 2015 the new Science and Health Career Center opened its doors for first time for Spring Semester students. On March 4, 2015 Oakton celebrated the dedication of the Margaret Burke Lee Science and Health Career Center which was named after Oakton s third president Margaret B. Lee. The Lee Center is the home of biology, chemistry, physics, earth science, nursing, physical therapist assistant, health information technology, horticultural therapy, medical lab technology, radiologic technology, and pharmacy technician programs. The threestory facility is comprised of contemporary class rooms and labs with some of the most modern and hightech science equipment available at any of our peers. On September 4, 2014, Oakton issued General Obligation Limited Tax Bonds Series 2014 in the amount of $13,970,000. The 2014 bonds were issued to pay the College s $14,530,000 Debt Certificates Series 2014 issued on May 7, 2014, which certificates were issued for the purpose of paying a portion of the costs of constructing and remodeling various campus buildings and infrastructure improvements pursuant to the College s $68.5 million five-year Facilities Master Plan. The bonds bear fixed interest at varying rates ranging from 3-1/8% to 5% per annum. The 2014 bonds maturing on or after December 1, 2025 are subject to optional redemption prior to maturity at the redemption price of par plus accrued interest to redemption date. The financing terms and conditions of the general obligation bonds and the debt certificates are described in the Notes to Financial Statements number 9. OTHER INFORMATION Awards: The Government Finance Officers Association of the United States and Canada (GFOA) has recognized Oakton s commitment to excellence and transparency in financial and budgetary reporting. Oakton s fiscal year 2014 CAFR, Popular Annual Report (President s Report), and the Annual Budget Report received the GFOA s Certificate of Achievement for Excellence in Financial Reporting, Popular Annual Financial Reporting Award, and Distinguished Budget Presentation Award. Oakton is proud to be one of approximately ten colleges in the nation to receive all three awards for its fiscal year 2014 reports. We 9 Page

16 believe our fiscal year 2015 CAFR continues this tradition for excellence in financial reporting - and that it will qualify for another GFOA award. Independent Audit: State statutes require an annual audit by independent certified public accountants. Oakton s Board of Trustees selected the accounting firm of Sikich LLP for this role. The auditors' report on the financial statements and schedules is included in the financial section of this CAFR. Sikich issued an unmodified (clean) opinion on Oakton Community College, Community College District No. 535 s CAFR for the year ended June 30, The independent auditor s report is located at the front of the financial section of the report. Respectfully submitted, /S/ Robert Nowak Robert Nowak Vice President for Business and Finance 10 Page

17 LISTING OF PRINCIPAL OFFICIALS BOARD OF TRUSTEES Ms. Patricia Harada Ms. Ann E. Tennes Mr. William Stafford Dr. Joan W. DiLeonardi Mr. Benjamin Salzberg Mr. Kyle Frank Mr. Jody Wadhwa Mr. William Dixon Chair, Board of Trustees Vice Chair, Board of Trustees Secretary, Board of Trustees Member, Board of Trustees Member, Board of Trustees Member, Board of Trustees Member, Board of Trustees Student Member, Board of Trustees OFFICERS OF OAKTON Dr. Joianne Smith Mr. Robert Nowak Dr. Thomas Hamel Ms. Bonnie Lucas Dr. Karl Brooks President Vice President for Business and Finance Vice President for Academic Affairs Vice President for Information and Technology Vice President for Student Affairs OFFICIALS ISSUING REPORT Mr. Robert Nowak Ms. Karen Epps Vice President for Business and Finance Director of Budget and Accounting Services DIVISION ISSUING REPORT BUSINESS AND FINANCE 11 Page

18 Oakton Community College President Asst. to the President & Secretary to the Board of Trustees President's Office Assistant VP for Academic Affairs VP for Technology and Data Analytics VP for Business & Finance VP for Student Affairs Assistant VP for Academic Affairs/ Dean, RHC Associate VP for Continuing Education, Training & Workforce Development Director of Systems & Network Services Director of Budget & Accounting Services Asst. VP for Access Equity & Diversity Dean, Science & Health Careers Dean, Math & Technologies Dean, Lang. Hum. & the Arts Director of Operations and Administration Director of Workforce Development and Corporate Training Director of Software & User Services Director of Research and Planning Director of College Relations Director of Business Services Director of Facilities Director of Athletics & Registrar Services Director of Enrollment Services Director of Student Life Dean, Social Science & Business Executive Director of Human Resources Director of Educational Foundation Director of Student Recruitment & Outreach Dean, Library & Online Learning Director of Counseling Assistant VP for Academic Affairs Director of Grants & Alternative Funding Director of Student Success Asst. Director of Student Success 12 Page

19 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to Oakton Community College Community College District 535 Illinois For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30,2014 Executive Director/CEO 13 Page

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22 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. Opinions In our opinion, the basic financial statements referred to in the first paragraph present fairly, in all material respects, the respective financial position of Oakton Community College, Community College District No. 535 and the College s discretely presented component unit, Oakton Community College Educational Foundation as of June 30, 2015 and 2014, and the changes in financial position and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Change in Accounting Principle The College adopted new accounting guidance, GASB Statement No. 68, Accounting and Financial Reporting for Pensions, during the year ended June 30, The implementation of this guidance resulted in changes to the pension related expense, notes presented in the notes to financial statements and to the required supplementary information. The data of the June 30, 2014 fiscal year end was not restated as the required information was not available. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management s discussion and analysis and the required supplementary information listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management s responses to our inquiries, the basic financial statements and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance

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24 MANAGEMENT S DISCUSSION AND ANALYSIS The management s discussion and analysis section of this report presents Oakton s financial information in a condensed financial presentation format for fiscal years ended June 30, 2015, and This section of the report is designed to provide an overview of the changes in financial activities from one year to the next, and should be read in conjunction with the transmittal letter (pages 2-10) and Oakton s basic financial statements (pages 34-40). Responsibility for the completeness and fairness of this information rests with the Oakton. Using This Annual Report The Statements of Net Position; the Statements of Revenues, Expenses and Changes in Net Position; and, the Statements of Cash Flows presented on pages 34-38, emulate corporate presentation models whereby all College activities are consolidated into one total. The Statements of Net Position reflect Oakton s financial position at a certain date, combining current financial resources (short-term spendable resources) with capital assets. The Statements of Revenues, Expenses, and Changes in Net Position focuses on the gross costs and the net costs of College activities that are supported substantially by property taxes, state and federal grants and contracts, student tuition and fees, and auxiliary enterprises revenues. This approach is intended to summarize and simplify the user s analysis of what College services cost. Statement of Net Position The Statement of Net Position presents Oakton s assets, deferred outflows, liabilities, deferred inflows and net position as of the end of the fiscal year. It is prepared under the accrual basis of accounting, whereby revenues and assets are recognized when the service has been delivered by Oakton, and, expenses and liabilities are recognized when others have delivered goods or services to Oakton, regardless of when cash is exchanged. This statement enables the reader to assess Oakton s financial condition including -- financial resources available to meet its current obligations and its ability to continue its mission. The Statements include assets (property that we own and what we are owed by others), deferred outflows (representing consumption of net position that applies to a future period and so will not be recognized as an expense until then), liabilities (what we owe to others and have collected from others before we have provided the service), deferred inflows (other imposed nonexchange revenues received or recognized as a receivable prior to the period when the use of the resources is either required or first permitted) and net position (assets minus liabilities). Finally, the Statement provides a picture of the net position (assets plus deferred outflows minus liabilities and deferred inflows) and their availability for use by the institution. Net 17 Page

25 position is divided into three major categories. Funds invested in capital assets, net of debt, provides the institution s equity in property, plant, and equipment owned by the institution. Restricted net position is available for use by the institution but must be spent in accordance with any time or purpose restrictions specified by donors and/or other external entities. And unrestricted net position is available to the institution for any lawful purpose. As of June 30, Increase Increase (Decrease) (Decrease) Current assets $ $ $ 10.7 $ $ (3.3) Non-current assets: Capital assets, net Other (15.0) 33.0 (1.3) Total assets and deferred outflows of resources Current liabilities (1.8) 22.8 (1.0) Non-current liabilities (1.6) Total liabilities (3.4) Deferred inflows of resources Total liabilities and deferred inflows of resources (2.8) Net Assets: Investment in capital assets (0.2) Restricted (2.8) Unrestricted (0.8) Total net position $ $ $ 3.1 $ $ 8.0 Fiscal Year 2015 Compared to 2014 Current assets: The total current assets balance increased by $10.7 million from the balance one year ago ($128.3 million) to the current balance ($139.0 million). The change is mainly attributable to the maturity of longer term investments in Certificates of Deposit, Treasury Notes and GNMAs and the reinvestment of such monies in shorter term investments. At this time, the available rates of return for longer term investments do not offset the College s near term needs for cash flow relative to ongoing capital projects and uncertainties with respect to funding from the state of Illinois. Current assets were further impacted by 18 Page

26 the College s investment in the Illinois Metropolitan Investment Fund (IMET). As of June 30, 2015 the fair market value of Oakton s IMET investment was $31.9 million as compared to $36.1 million at June 30, Oakton is amongst almost 300 governmental entities that have funds invested in IMET. In late 2014 IMET was notified that its Convenience Fund was the victim of fraud. The fraud s impact on the College was to place $1 million of College funds at risk. At the time Oakton was notified of the fraud, the amount at risk represented 0.8% of the College s investment portfolio which totaled $123 million. IMET is pursuing recovery of the $50.4 million in IMET s assets that are at risk; of which Oakton accounts for $1 million. To date, Oakton has received two recovery distributions totaling $50,000 reducing its exposure to $952,000. Estimates by IMET s auditors and investment advisor range from 53.5% to 70% before consideration of recoveries from insurance, fidelity bonds, etc. Adding to the possibility of recovery, Oakton has filed a claim with AIG through ICCRMC, the College s risk consortium. As of June 30, 2015, Oakton wrote down this portion of its investment with IMET. Non-current assets - Other: The other non-current assets balance decreased by $15 million from the balance one year ago ($31.7 million) to the current balance ($16.7 million). This is mainly attributable to the maturation of longer term investments and reinvestment of those monies in short term vehicles as described above. Non-current assets - Capital: See capital asset section below for discussion of the increase in capital assets net of depreciation ($4.4 million). Deferred outflows of resources: In 2015, the College implemented GASB Statement No 68, Accounting and Financial Reporting for Pensions which resulted in the recognition of a deferred outflow of resources for contributions that the College made to the State University Retirement System (SURS) after the date used to measure the pension liability. Current liabilities: The current liabilities balance decreased by $1.8 million from the balance one year ago ($21.8 million) to the current balance ($20.0 million). This is attributable to a decrease in constructionrelated vendor liabilities ($2.2 million). Non-current liabilities: The non-current liabilities balance decreased by $1.6 million from the balance one year ago ($45.6 million) to the current balance ($44.0 million). The decrease is attributable to a scheduled principal payment of $2.1 million on the General Obligation Limited Tax Bonds, Series On September 4, 2014, the College issued General Obligation Limited Tax Bonds, Series 2014 in the amount 19 Page

27 of $13,970,000. The 2014 bonds were issued to pay the College s $14,530,000 of Debt Certificates, which certificates were issued for the purpose of paying a portion of the costs of constructing and remodeling various campus buildings and infrastructure improvements pursuant to the College s $68.5 million fiveyear Facilities Master Plan. Deferred Inflows: Deferred inflows increased by approximately $600 thousand (2.2%) from the balance one year ago ($23.7 million) to the current balance ($24.3 million). The increase is entirely related to normal increases and allocation of property taxes to the year intended to finance. Current Ratio The current ratio is an indicator of Oakton s ability to pay its current obligations. The rate is determined by dividing current assets by current liabilities. Accordingly, the financial strength of the College continues to be strong and is undoubtedly capable of meeting its current obligations at a ratio of 7.0 to 1 and 5.9 to 1 for fiscal years 2015 and 2014, respectively. As the state of Illinois continues to struggle financially, Oakton s sound fiscal management and net position base will provide flexibility in evaluating a response. In fiscal year 2015, Oakton received $5.1 million of unrestricted Base Operating grant funds, $1.4 million for the provision of literacy and English as a Second Language instruction, and $907,000 for student financial aid from the state Fiscal Year 2014 Compared to 2013 (Prior Year) Current assets: The total current assets balance decreased by $3.3 million from the balance one year ago ($131.6 million) to the current balance ($128.3 million). The change is mainly attributable to amortization of construction-related insurance for projects that are nearing completion and the timing of monies received from grants; including the Illinois Community College Board s Base Operating Grant Non-current assets - Other: The other non-current assets balance decreased by $1.3 million from the balance one year ago ($33.0 million) to the current balance ($31.7 million). This is mainly attributable to the investment of monies to fund ongoing construction projects. Non-current assets - Capital: See capital asset section below for discussion of the increase in capital assets net of depreciation ($24.5 million). 20 Page

28 Current liabilities: The current liabilities balance decreased by $1.0 million from the balance one year ago ($22.8 million) to the current balance ($21.8 million). This is attributable to the decrease vendor liabilities ($1.5 million) offset by an increase in salaries accrued ($647 thousand) at the end of the fiscal year. Note the vendor liability is significantly comprised of construction costs. Non-current liabilities: The non-current liabilities balance increased by $12.2 million from the balance one year ago ($33.4 million) to the current balance ($45.6 million). The increase is attributable to the May 2014 issuance of $14.5 million of Debt Certificates offset by reclassification of the fiscal year s bond payment of $2.1 million to current liabilities, and, the amortization of bond premium ($228 thousand). Deferred Inflows: Deferred inflows increased by approximately $600 thousand (0.9%) from the balance one year ago ($23.1 million) to the current balance ($23.7 million). The increase is entirely related to normal increases and collections of property taxes. Current Ratio The current ratio is an indicator of Oakton s ability to pay its current obligations. The rate is determined by dividing current assets by current liabilities. Accordingly, the financial strength of the College continues to be strong and is undoubtedly capable of meeting its current obligations at a ratio of 5.8 to 1 for fiscal years 2014 and Capital Asse ts, Ne t June 30, (in millions) Increase Increase (Decrease) (Decrease) Capital Assets: Land and Improvements $ 16.5 $ 13.3 $ 3.2 $ 13.3 $ - Work in Progress (44.5) Building Equipment Computer Technology (0.1) 1.2 (0.4) Total Less Accumulated Depreciation (40.3) (36.5) (3.8) (34.1) (2.4) Net Capital Assets $ $ $ 4.4 $ 81.4 $ Page

29 Detailed information on capital asset activity may be found in Note 3 to financial statements Capital Assets. Fiscal Year 2015 Compared to 2014 During fiscal year 2015, Oakton completed several components of its $68.5 million Facilities Master Plan. In the fall, an Enrollment Center opened on the Des Plaines campus which provides a one-stop location for the offices most frequented by students. Services offered include admission to the College, registration and financial assistance. The Margaret Burke Lee Science and Health Careers Center opened for classes in January The Lee Center introduces a new breed of science spaces, celebrates the natural and artistic highlights of the Des Plaines campus, and showcases the latest sustainable technologies. The LEED-certified instructional center is home to the College s anatomy, biology, chemistry, earth science, medical laboratory technology, nursing, physical therapy assistant, physiology, and physics programs. Additional Master Plan projects included renovation of a Des Plaines campus parking lot, ongoing Central Plant Improvements at Des Plaines and implementation of Building Automation Systems at both the Des Plaines and Skokie campuses. The capital assets balance increased by $8.2 million from the balance one year ago ($142.4 million) to the current balance ($150.6 million). The increase is attributable to continuing investments in Master Plan capital projects as follows: Lee Science and Health Careers Instructional Building - $3.0 million Des Plaines Enrollment Center - $1.2 million Building Automation and Central Plant Improvements - $515,000 Des Plaines Parking Lot and Road Improvements - $1.2 million Renovation of Vacated Space - $229,500 Other large capital projects completed and equipment purchased by the College included: Renovation of Des Plaines gymnasium locker rooms and softball field - $1.1 million Skokie Parking Lot Improvements - $169, Page

30 Electrical and IT Equipment Room Cooling Upgrades - $482,000 Instructional Lab Equipment (Lee Center and Nano Tech Lab) - $212,000 Operations and Maintenance Equipment (largely related to the Lee Center) - $154,000 The accumulated depreciation increased by approximately $3.8 million from the balance one year ago ($36.5 million) to the current balance ($40.3 million). The increase in depreciation relative to prior year $2.8 is attributed to the placement in service of the Lee Center, the Enrollment Center, various site and building improvements along with new Instructional and Facilities equipment largely associated with the Lee Center. Current year depreciation totaled $3.9 million. Fiscal Year 2014 Compared to 2013 (Prior Year) The capital assets balance increased by $26.9 million from the balance one year ago ($115.5 million) to the current balance ($142.4 million). The increase is attributable to continuing investments in Master Plan capital projects as follows: Science and Health Careers Instructional Building - $18.0 million Des Plaines Enrollment Center - $3.2 million Building Automation and Central Plant Improvements - $2.7 million Parking Lot and Road Improvements - $1.0 million Classroom Renovations - $3.5 million Net Position Analysis of Net Position June 30, (in millions) Increase Increase (Decrease) (Decrease) Net Position: Net Investment in Capital Assets $ 71.1 $ 71.3 ($0.2) $ 60.8 $10.5 Restricted Expendable (2.8) Unrestricted (0.8) Total $ $ $ 3.1 $ $ Page

31 Financial Highlights Comparison of Net Position Fiscal Years Unrestricted Net Investment in Capital Assets Restricted Analysis of Net Position (In millions) June 30, 2015 Unrestricted, $82.1 Restricted, $24.6 Net Investment Capital Assets $71.1 Fiscal Year 2015 Compared to 2014 Oakton s responsible fiscal management provides a strong foundation to meet the educational needs of our community through its continued investments in the institutions infrastructure and educational programs. The total net position increase of $3.1 million from fiscal year 2014 to 2015 resulted from the following: Net Investment in Capital Assets: The net investment in capital assets balance decreased $150,000 from the balance one year ago ($71.3 million) to the current balance ($71.1 million). The decrease is attributed to 24 Page

32 assets purchased and capitalized during the year ($8.3 million) offset by the depreciation of assets ($3.9) million) and related debt obligation ($4.6 million). Restricted expendable net position: The restricted expendable net position increased $4.1 million from the balance one year ago ($20.5 million) to the current balance ($24.6 million). The change is attributed to activities relating to the capital projects, debt service, and specific purpose net position as described as follows: The capital projects net position increased by $3.1 million; this is the result of construction fees, interest, and inter-fund transfers offset by investments in capital projects. The debt service net position increased by $747 thousand from property tax funding ($3.3 million) and issuance of the 2014 General Obligation Limited Tax Bonds ($15.6 million) offset by the debt service payments including repayment of the 2014 Debt Certificates ($18.2 million). The specific purpose net position decreased by $222 thousand from an increase in revenues, including state and federal grants ($32.3 million) and inter-fund transfers ($1.5 million) offset by operating expenses ($33.6 million). Unrestricted net position: The unrestricted net position balance decreased by $1 million from the balance one year ago ($82.9 million) to the current balance ($81.9 million). The net decrease of $1 million is attributed to an operating loss ($45.8 million) offset by both non-operating income ($51.2 million). Return on Net Position Ratios The return on net position ratio determines whether the institution is financially better off than in the previous year by measuring total economic return. Oakton s financial strength of 1.7 has decreased relative to last year s reported ratio of 4.7. The 2015 ratio continues to exceed the Consumer Price Index (CPI) of 0.12% for all urban consumers for the period ending June 30, 2015 which means there was no loss in purchasing power during the fiscal year. Fiscal Year 2014 Compared to 2013 (Prior Year) Oakton continues to position itself to meet the educational needs of our community through its continued investments in the institutions infrastructure and educational programs. The total net position increase of $8.0 million from fiscal year 2013 to 2014 resulted from the following: 25 Page

33 Net Investment in Capital Assets: The net investment in capital assets balance increased $10.5 million from the balance one year ago ($60.8 million) to the current balance ($71.3 million). The increase is attributed to assets purchased and capitalized during the year ($27.3 million) offset by the depreciation of assets ($2.8 million) and related debt obligation ($14.0 million). Restricted expendable net position: The restricted expendable net position decreased $2.8 million from the balance one year ago ($23.3 million) to the current balance ($20.5 million). The change is attributed to activities relating to the capital projects, debt service, and specific purpose net position as described as follows: The capital projects net position decreased by $2.5 million; this is the net of funding from the issuance of Debt Certificates, construction fees, interest, and inter-fund transfers offset by investments in capital projects. The debt service net position increased by $175 thousand from property tax funding ($3.2 million) offset by the debt service payments ($3.0 million). The special purpose net position decreased by $483 thousand from an increase in revenues, including state and federal grants ($30.0 million) and inter-fund transfers ($820 thousand, net) offset by operating expenses ($31.3 million). Unrestricted net position: The unrestricted net position balance increased by $305 thousand from the balance one year ago ($82.6 million) to the current balance ($82.9 million). The net increase of $305 thousand is attributed to an operating loss ($42.6 million) offset by both non-operating income ($50.9 million) and a transfer out of funds ($7.9 million) primarily to fund Capital Master Plan costs. Return on Net Position Ratios The return on net position ratio determines whether the institution is financially better off than in the previous year by measuring total economic return. Oakton s financial strength of 4.8 has decreased relative to last year s reported ratio of 5.6. The 2014 ratio continues to exceed the Consumer Price Index (CPI) of 2.1% for all urban consumers for the period ending June 30, 2014 which means there was no loss in purchasing power during the fiscal year. 26 Page

34 For the Years Ended June 30 Increase Increase (Decrease) (Decrease) Operating revenue: Tuition and fees $ 17.0 $ 15.8 $ 1.2 $ 16.1 $ (0.3) Auxiliary (0.3) Other (0.5) Total Operating Revenue (0.6) Non-operating revenue: State grants and contracts Federal local grants and contracts (0.6) Property and replacement taxes Investment income (0.1) 0.5 (0.6) Total Non-Operating Revenue Total Revenues Less; Operating expenses Interest on capital asset related debt Net income before capital contributions (4.9) 8.8 (0.8) Capital appropriations Capital grants and gifts Increase in net position (4.9) 8.8 (0.8) Net position, beginning of year Net position, end of year $ $ $ 3.1 $ $ Page

35 Revenues State grants and contracts, $27.4 Revenue by Source Auxiliary, $6.6 (In millions) Federal, local grants and contracts, $10.2 Investment income, $(0.1) Tuition and fees, $17.0 Other, $0.8 Property and replacement taxes, $49.0 Fiscal Year 2015 Compared to 2014 Operating Revenue: The operating revenue increased by $948 thousand from the total one year ago ($23.5 million) to the current balance ($24.4 million) for the following reasons: Tuition and fees revenue increased by $1,171 thousand. Oakton increased the per credit hour tuition rate from prior year s rate of $95.34 to the current rate of $ Revenues were impacted by declining enrollment. As reported in the Schedule of Enrollment Data and Other Bases upon Which Claims Are File report (included in this CAFR), the reported credit hours declined from prior year s hours of 213,443 to the current year s hours of 206,620. Auxiliary revenue decreased by $214 thousand due to continued declining bookstore sales and revenues from the Alliance for Lifelong Learning. Non-operating revenue: The non-operating revenue increased by $2.4 million from the balance one year ago ($84.1 million) to the current balance ($86.5 million) for the following reasons: State grants and contracts increased by $2.4 million due to recognizing pension expense in 2015 with a corresponding revenue for the special funding situation related to the College s employees participating in the SURS retirement plan versus prior years recognizing State of Illinois contributions to the College on behalf of employees participating in SURS retirement plan. The 28 Page

36 pension expense and related revenue was $19.6 million in fiscal year 2015 as compared to contributions of $17.1 million in fiscal year Property and replacement taxes increased by $1.0 million due to inflation-based property tax increases and stronger collections of personal property replacement taxes consistent with overall economic improvements. Fiscal Year 2014 Compared to 2013 (Prior Year) Operating Revenue: The operating revenue decreased by $600 thousand from the total one year ago ($24.1 million) to the current balance ($23.5 million) for the following reasons: Tuition and fees revenue decreased by $300 thousand. Oakton increased the per credit hour tuition rate from prior year s rate of $93.75 to the current rate of $95.34; however this increase in revenue was offset by declining enrollment. As reported in the Schedule of Enrollment Data and Other Bases upon Which Claims Are File report (included in this CAFR), the reported credit hours declined from prior year s hours of 223,072 to the current year s hours of 213,443. Auxiliary revenue decreased by $300 thousand due to declining bookstore sales ($316 thousand) and revenues from the Alliance for Lifelong Learning. Non-operating revenue: The non-operating revenue increased by $2.2 million from the balance one year ago ($81.9 million) to the current balance ($84.1 million) for the following reasons: State grants and contracts increased by $0.5 million due to the increase in State of Illinois contributions to the College on behalf of employees participating in SURS retirement plan ($611 thousand) offset by declining funding for ISAC student financial aid ($80 thousand) and Illinois Veteran s Grants ($114 thousand). Property and replacement taxes increased by $1.4 million due to inflation-based property tax increases and stronger collections of personal property replacement taxes consistent with overall economic improvements. 29 Page

37 Expenses For the Years Ended June 30 (in millions) Net Net Increase Increase (Decrease) (Decrease) Operating Expense: Instruction $ 46.5 $ 43.7 $ 2.80 $ 45.1 ($1.4) Academic Support Student Services Public Service (0.1) Operations and Maintenance 0.0 of Plant General Administration Institutional Support Financial Aid (0.3) Auxiliary Depreciation Total $ $ 98.8 $ 7.7 $ 96.4 $ 2.4 Operating Expenses June 30, 2015 (In millions) Academic support, $ 11.3 General administration, $ 6.7 Student services, $ 8.5 Financial aid, $ 4.0 Public service, $ 1.0 Auxiliary, $ 10.3 Depreciation, $ 3.9 Institutional support, $ 3.8 Operations and maintenance of plant, $ 10.5 Instruction, $ Page

38 Comparison of Operating Expenses Fiscal Years 2015 thru 2013 (In millions) Fiscal Year 2015 Compared to 2014 Operating Expense: Operating expenses increased by $7.7 million from the total one year ago ($98.8 million) to the current balance ($106.5 million) mainly for the following reasons: Instruction expenses increased by $2.8 million mainly due to recognizing pension expense instead of contributions by the state of Illinois to the State Universities Retirement System of Illinois pension plan on behalf of Oakton employees; these are reflected as employee benefit expenses by Oakton. Additionally, contractual salary increases and expansion of the Fire Science and Paramedic programs contributed to the increase. In conjunction with occupation of the Lee Science and Health Careers Center for spring semester, a greater than normal amount of non-capitalized equipment and supplies were purchased. Academic support expenses increased $255 thousand. This increase is attributable to an increase in SURS expense, tutoring salaries and student employees for the larger quantity of laboratories in the Lee Center. The College also invested in technology updates for its instructional media resources. 31 Page

39 Operations and maintenance of plant costs increased $1.1 million due largely to purchases of noncapitalized equipment and supplies for occupation of the Lee Center and the Enrollment Center. Greater than expected overtime for facilities and public safety staff was incurred in the current year. Depreciation increased $1.1 million as major construction projects are completed and become operational. General administration and Institutional expenses increased by $1.8 million. This increase is comprised of a variety of components including costs of a presidential search, increased workers compensation and medical insurance plan rates and legal expenses. Fiscal Year 2014 Compared to 2013 (Prior Year) Operating Expense: Operating expenses increased by $2.4 million from the total one year ago ($96.4 million) to the current balance ($98.8 million) mainly for the following reasons: Instruction expenses decreased by $1.4 million mainly due turnover of both faculty and staff. Several instructional faculty and staff have retired thus impacting costs for the State Universities Retirement System of Illinois pension plan and overall salaries. Additionally, amounts were budgeted to purchase (non capitalized) equipment for the Science and Health Careers building that were not spent in fiscal year 2014 due to the opening delay. These were not replaced by spending in other instructional areas resulting in a decrease from normal spending levels. Academic support expenses increased $1.1 million. This increase is attributable to investments in staffing and equipment (primarily not capitalized) to support faculty development, data analytics regarding student success, instructional media, and tools for a growing population of students with disabilities. Operations and maintenance of plant costs increased $800 thousand due to both scheduled and unscheduled replacement of (non capitalized) equipment and repairs, ongoing repairs related to the 2013 flood, facilities staff training, and overtime for facilities and public safety staff during winter weather more harsh than recent years. Depreciation increased $300 thousand as capital projects are completed and become operational. General administration and Institutional expenses increased by $900 thousand due primarily to the increase in costs for the State Universities Retirement System of Illinois pension plan ($800 thousand). Note, the College has experienced an unusual increase in employee retirements over the last two years caused by the uncertainty changes in the near future to the State University Retirement System of Illinois pension plan. 32 Page

40 Financial aid expenses decreased by $300 thousand driven by changing guidelines, reduced State of Illinois funding and the decline in our student enrollment. Auxiliary expenses increased by $700 thousand mainly from increased salary and benefit costs for expanded IT staffing and investments in non capitalized computer equipment and software. Other Matters Oakton Names New President Dr. Joianne Smith was named the fourth president of Oakton Community College effective July 1, The Board of Trustees performed a nation-wide search due to the retirement of the College s third president, Dr. Margaret Burke Lee, who served as Oakton s president for twenty years. Dr. Smith was appointed by the Oakton Board of Trustees on March 17, Dr. Smith has served Oakton since 2002 when she began her career as dean of students. In 2005, Dr. Smith became the vice president of Student Affairs a position which she held until being named the College s president. Collective Bargaining The College is served by four collective bargaining units. Two of those units agreements will expire on June 30, Those bargaining units are the Oakton Community College Faculty Association and the Oakton Community College Public Safety Officers (Illinois FOP Labor Council). CONTACTING OAKTON S FINANCIAL MANAGEMENT This financial report is designed to provide our constituents with a general overview of Oakton Community College s finances and to demonstrate Oakton s accountability for the resources it receives. Questions concerning this report or requests for additional financial information should be directed to the office of the Vice President for Business and Finance, 1600 East Golf Road, Des Plaines, IL Page

41 DES PLAINES, ILLINOIS STATEMENTS OF NET POSITION June 30, 2015 and CURRENT ASSETS Cash and cash equivalents $ 9,493,880 $ 11,168,886 Short-term investments 95,081,294 83,407,134 Property tax receivable, net of allowance 2015 $487,917; 2014 $475,658 23,908,000 23,307,271 Student tuition receivable, net of allowance 2015 $1,197,543; 2014 $1,108,875 6,506,841 6,353,101 Other accounts receivable 2,374,755 2,042,840 Inventory 661,241 1,084,645 Prepaid expenses 952, ,862 Total current assets 138,978, ,330,739 NONCURRENT ASSETS Long-term investments 16,617,819 31,659,714 Student loans 12,362 (6,041) Capital assets 150,624, ,361,188 Less accumulated depreciation (40,280,073) (36,475,295) Total noncurrent assets 126,974, ,539,566 Total assets 265,953, ,870,305 DEFERRED OUTFLOWS OF RESOURCES SURS pension contributions 44,739 - Total deferred outflows of resources 44,739 - Total assets and deferred outflows of resources 265,998, ,870,305 (This statement is continued on the following page.) 34 Page

42 DES PLAINES, ILLINOIS STATEMENTS OF NET POSITION (continued) June 30, 2015 and CURRENT LIABILITIES Accounts payable $ 4,533,090 $ 6,728,056 Accrued salaries 1,121,087 1,121,736 Accrued compensated absences 526, ,321 Accrued interest payable 122,380 86,450 Other accrued liabilities 253,019 84,430 Deposits held in custody for others 716, ,835 Unearned tuition and fees revenue 10,196,952 9,959,070 Current portion of long-term debt obligations 2,195,000 2,110,000 Other unearned revenue 274, ,058 Total current liabilities 19,938,347 21,827,956 NONCURRENT LIABILITIES Accrued compensated absences 1,425,965 1,425,966 Other accrued liabilities 5,579,231 5,772,821 Long-term debt obligations 37,036,724 38,439,572 Total noncurrent liabilities 44,041,920 45,638,359 Total liabilities 63,980,267 67,466,315 DEFERRED INFLOWS OF RESOURCES Unearned property tax revenue 24,249,681 23,720,208 Total deferred inflows of resources 24,249,681 23,720,208 Total liabilities and deferred inflows of resources 88,229,948 91,186,523 NET POSITION Net investment in capital assets 71,112,849 71,264,199 Restricted for Capital projects 5,449,664 2,399,246 Working cash 14,500,000 14,500,000 Debt service 1,906,862 1,160,023 Specific purposes 2,745,828 2,479,532 Unrestricted 82,053,015 82,880,781 TOTAL NET POSITION $ 177,768,218 $ 174,683,781 See accompanying notes to financial statements. 35 Page

43 DES PLAINES, ILLINOIS STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION For the Years Ended June 30, 2015 and OPERATING REVENUES Student tuition and fees, net of scholarship allowances of $5,428,074 and $5,778,231 in 2015 and 2014, respectively $ 17,006,872 $ 15,835,212 Chargeback revenue 60,375 69,451 Auxiliary enterprises revenue 6,515,234 6,369,929 Other operating revenue 871,252 1,230,662 Total operating revenues 24,453,733 23,505,254 OPERATING EXPENSES Instruction 46,510,274 43,718,054 Academic support 11,300,033 11,045,094 Student services 8,543,457 8,320,936 Public services 979, ,098 Operation and maintenance of plant 10,516,026 9,358,309 General administration 6,699,564 6,227,811 Institutional support 3,777,065 2,512,003 Financial aid 4,033,350 4,031,899 Auxiliary enterprises 10,263,964 10,050,199 Depreciation 3,926,105 2,787,891 Total operating expenses 106,549,590 98,849,294 OPERATING INCOME (LOSS) (82,095,857) (75,344,040) NON-OPERATING REVENUES (EXPENSES) State grants and contracts 27,364,256 24,750,467 Property taxes 47,913,604 46,959,624 Personal property replacement tax 1,090,514 1,042,235 Federal grants and contracts 9,357,232 9,575,705 Local grants and contracts 805,077 1,273,973 Investment income (103,159) 491,752 Interest expense and fiscal charges (1,247,230) (788,653) Total non-operating revenues (expenses) 85,180,294 83,305,103 CHANGE IN NET POSITION 3,084,437 7,961,063 NET POSITION, JULY 1 174,683, ,722,718 NET POSITION, JUNE 30 $ 177,768,218 $ 174,683,781 See accompanying notes to financial statements. 36 Page

44 DES PLAINES, ILLINOIS STATEMENTS OF CASH FLOWS For the Years Ended June 30, 2015 and CASH FLOWS FROM OPERATING ACTIVITIES Tuition and fees $ 16,826,486 $ 15,712,137 Payments to suppliers (27,335,704) (23,829,938) Payments to employees (54,665,311) (53,178,899) Auxiliary enterprise charges 6,548,631 6,536,522 Other 931,627 1,300,113 Net cash from operating activities (57,694,271) (53,460,065) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Local property taxes 48,932,862 48,734,237 State appropriations 7,507,748 8,563,448 Grants and contracts 9,802,183 10,756,245 Net cash from noncapital financing activities 66,242,793 68,053,930 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchases of capital assets (11,020,545) (29,212,125) General obligation refunding bond proceeds 13,970,000 - Bond premium issuance 1,663,468 - Refunding of debt certificates (14,530,000) - Debt certificate proceeds - 14,530,000 Bond principal paid (2,110,000) (2,030,000) Interest paid on debt certificates and G.O. bonds (1,522,616) (1,017,566) Net cash from capital and related financing activities (13,549,693) (17,729,691) CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sales and maturities of investments 15,041,895 10,216,122 Interest on investments (41,569) 1,927,336 Purchase of investments (11,674,161) (2,235,206) Net cash from investing activities 3,326,165 9,908,252 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (1,675,006) 6,772,426 CASH AND CASH EQUIVALENTS, JULY 1 11,168,886 4,396,460 CASH AND CASH EQUIVALENTS, JUNE 30 $ 9,493,880 $ 11,168,886 (This statement is continued on the following page.) 37 Page

45 DES PLAINES, ILLINOIS STATEMENTS OF CASH FLOWS (continued) For the Years Ended June 30, 2015 and RECONCILIATION OF NET OPERATING INCOME (LOSS) TO NET CASH FROM OPERATING ACTIVITIES Operating income (loss) $ (82,095,857) $ (75,344,040) Adjustments to reconcile net income (loss) to net cash from operating activities State on behalf payments for fringe benefits 19,771,329 17,146,147 Depreciation 3,926,105 2,787,891 Changes in net position Receivables (net) (120,343) 135,139 Inventories 423, ,092 Prepaid expenses 14,200 1,186,334 SURS pension expense (44,739) - Accounts payable 440,794 27,061 Accrued salaries (649) 647,033 Accrued compensated absences 50,823 80,878 Other accrued liabilities (25,001) (290,201) Deposits held in custody for others (7,691) 68,222 Unearned tuition and fees 237, ,812 Other unearned revenues (264,528) (250,433) NET CASH FROM OPERATING ACTIVITIES $ (57,694,271) $ (53,460,065) NONCASH INVESTING, CAPITAL AND FINANCIAL State on behalf payments for fringe benefits $ 19,771,329 $ 17,146,147 Issuance of general obligation refunding bonds 13,970,000 - Issuance of bond premium 1,663,468 - Amortization of bond premium (311,316) - Refunding of debt certificates (14,530,000) - TOTAL NONCASH INVESTING, CAPITAL AND FINANCIAL $ 20,563,481 $ 17,146,147 See accompanying notes to financial statements. 38 Page

46 COMMUNITY COLLEGE DISTRICT NUMBER 535 COMPONENT UNIT OAKTON COMMUNITY COLLEGE EDUCATIONAL FOUNDATION DES PLAINES, ILLINOIS STATEMENTS OF FINANCIAL POSITION June 30, 2015 and 2014 ASSETS Cash and cash equivalents $ 26,550 $ 7,772 Investments Certificates of deposit 50, ,000 Money market accounts 471, ,314 Mutual funds - 1,761 Common stock 8,428,005 8,661,034 Fixed income 4,807,697 4,511,625 Real estate 526, ,029 Accrued interest 1,819 2,177 TOTAL ASSETS $ 14,312,351 $ 14,667,712 LIABILITIES AND NET ASSETS LIABILITIES Due to Oakton Community College $ 329,635 $ 315,657 Annuities payable 8,868 17,738 Total liabilities 338, ,395 NET ASSETS Unrestricted Undesignated 4,647,398 4,567,444 Designated 3,054,045 3,287,903 Temporarily restricted 3,030,533 3,392,897 Permanently restricted 3,241,872 3,086,073 Total net assets 13,973,848 14,334,317 TOTAL LIABILITIES AND NET ASSETS $ 14,312,351 $ 14,667,712 See accompanying notes to financial statements. 39 Page

47 COMMUNITY COLLEGE DISTRICT NUMBER 535 COMPONENT UNIT OAKTON COMMUNITY COLLEGE EDUCATIONAL FOUNDATION DES PLAINES, ILLINOIS STATEMENTS OF ACTIVITIES For the Year Ended June 30, 2015 (With Summarized Financial Information for the Year Ended June 30, 2014) 2015 Unrestricted Temporarily Permanently 2014 Undesignated Designated Total Restricted Restricted Total Total REVENUES Contributions $ 18,327 $ 5,310 $ 23,637 $ 94,181 $ 145,829 $ 263,647 $ 730,329 Fundraising 88,646-88, ,646 83,679 Net investment return 32,767 34,593 67,360 34, ,237 1,889,563 Contributed services 451, , , ,000 In-kind contributions 46,548-46, , ,830 Miscellaneous 46,687-46, ,173 45,116 Designation of unrestricted net assets (22,678) 22, Net assets released from restrictions 481, ,938 (491,908) 9, Total revenues 1,143,347 62,581 1,205,928 (362,364) 155, ,363 3,736,517 EXPENSES Program Scholarships granted 316, , , , ,890 Awards granted 146, , , , ,888 In-kind grant to College 46,548-46, , ,830 Management and general Contributed services 451, , , ,000 Other 61,012 15,826 76, ,838 59,633 Fundraising 41,745-41, ,745 25,618 Total expenses 1,063, ,439 1,359, ,359,832 1,663,859 CHANGE IN NET ASSETS 79,954 (233,858) (153,904) (362,364) 155,799 (360,469) 2,072,658 NET ASSETS, JULY 1 4,567,444 3,287,903 7,855,347 3,392,897 3,086,073 14,334,317 12,261,659 NET ASSETS, JUNE 30 $ 4,647,398 $ 3,054,045 $ 7,701,443 $ 3,030,533 $ 3,241,872 $ 13,973,848 $ 14,334,317 See accompanying notes to financial statements. 40 Page

48 NOTES TO FINANCIAL STATEMENTS June 30, 2015 and ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Oakton Community College, Community College District No. 535 (the College), established in 1969 under the Illinois Public Community College Act, provides baccalaureate, vocational and continuing education courses to a five-township area located directly north and northwest of Chicago, Illinois. The Board of Trustees is the College s ruling body which establishes the policies and procedures by which the College is governed. A. Reporting Entity The College follows Governmental Accounting Standards Board (GASB) Statement No. 61, The Financial Reporting Entity, which reinforced the applicability of GASB Statement Number 39, Determining Whether Certain Organizations are Component Units. This statement amends GASB Statement No. 14, The Financial Reporting Entity, to provide additional guidance to determine whether certain organizations for which the College is not financially accountable should be reported as component units based on the nature and significance of their relationship with the College. As defined by accounting principles generally accepted in the United States of America, as applicable to governments (hereinafter referred to as generally accepted accounting principals (GAAP)), the financial reporting entity consists of the primary government, as well as its component unit, the Oakton Community College Educational Foundation (the Foundation). The Foundation is a legally separate, tax-exempt component unit of the College. The Foundation acts primarily as a fundraising organization to supplement the resources that are available to the College in support of its programs. The 32-member board of the Foundation is self-perpetuating and consists of graduates and friends of the College. Although the College does not control the timing or amount of receipts from the Foundation, the majority of resources or income thereon that the Foundation holds and invests is restricted to the activities of the College by the donors. Because these restricted resources held by the Foundation can only be used by, or for the benefit of, the College, the Foundation is considered a component unit of the College. The Foundation is reported in separate financial statements because of the difference in its reporting model, as further described below. 41 Page

49 NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2015 and ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) A. Reporting Entity (continued) The Foundation is a private not-for-profit 501(c)(3) organization that reports its financial results under Financial Accounting Standards Board (FASB) Statements. Most significant to the Foundation s operations and reporting model are FASB Statement No. 116, Accounting for Contributions Received and Contributions Made, and FASB Statement No. 117, Financial Reporting for Not-for-Profit Organizations. As such, certain revenue recognition criteria and presentation features are different from GASB revenue recognition criteria and presentation features. No modifications have been made to the Foundation s financial information in the College s financial reporting entity for these differences. However, significant note disclosures (See Note 10) to the Foundation s financial statements have been incorporated into the College s notes to financial statements. Financial statements for the Foundation can be obtained by calling the Foundation at (847) B. Measurement Focus, Basis of Accounting and Financial Statement Presentation For financial reporting purposes, the College is considered a special-purpose government engaged only in business-type activities. Accordingly, the College s financial statements have been presented using the economic resources measurement focus and the accrual basis of accounting. Under the accrual basis, revenues are recognized when earned, and expenses are recorded when an obligation has been incurred. All significant intra-agency and intrafund transactions have been eliminated. Non-exchange transactions, in which the College receives value without directly giving equal value in return, includes: property taxes, federal, state and local grants, state appropriations and other contributions. On an accrual basis, revenue from property taxes is recognized in the period for which the levy is intended to finance. Revenue from grants, state appropriations and other contributions is recognized in the year in which all eligibility requirements have been satisfied. Eligibility requirements include timing requirements, which specify the year when the resources are required to be used or the fiscal year when use is first permitted, matching requirements, in which the College must provide local resources to be used for a specified purpose, and expense requirements, in which the resources are provided to the College on a reimbursement basis. 42 Page

50 NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2015 and ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) B. Measurement Focus, Basis of Accounting and Financial Statement Presentation (continued) The accounting policies of the College conform to accounting principles generally accepted in the United States of America as applicable to colleges and universities as well as those prescribed by the Illinois Community College Board (ICCB). The College s reports are based on all applicable GASB pronouncements. When applicable, certain prior year amounts have been reclassified to conform to current year presentation. The following is a summary of the more significant policies. C. Cash and Cash Equivalents Cash includes deposits held at banks plus small amounts maintained for change funds. Cash equivalents are defined as short-term highly liquid investments readily converted to cash with original maturities of three months or less. D. Investments Investments with a maturity less than one year when purchased are carried at cost or amortized cost. Investments with a maturity greater than one year when purchased are reported at fair value. Fair value is based on published fair values on June 30, 2015 and E. Inventories Inventories consist primarily of prepaid postage and items held for resale by the bookstore and are stated at the lower of cost (principally average) or market. The cost is recorded as expenses as the inventory is consumed. F. Unearned Revenues Unearned revenues includes: (1) tax levies accrued that are restricted for future fiscal years; (2) amounts received or accrued for tuition and fees prior to the end of the fiscal year that are related to the subsequent fiscal year; and (3) amounts received from grant and contract sponsors that have not been earned. 43 Page

51 NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2015 and ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) G. Noncurrent Liabilities Noncurrent liabilities include: estimated amounts of accrued compensated absences and net other postemployment health care benefits (OPEB) liabilities that will not be paid within the next fiscal year; property tax levies accrued that are restricted to fiscal years beyond the next fiscal year; and general obligation bonds that will not be paid within the next fiscal year. H. Net Position The College s net position is classified as follows: Net investment in capital assets - This represents the College s total investment in capital assets, net of accumulated depreciation and net of related debt. Restricted - This includes resources that the College is legally or contractually obligated to spend in accordance with restrictions imposed by external third parties. When both restricted and unrestricted resources are available for use, it is the College s policy to use restricted resources first, then unrestricted resources when they are needed. Unrestricted - This includes resources derived from student tuition and fees, state appropriations and sales and services of educational departments and auxiliary enterprises. These resources are used for transactions relating to the educational and general operations of the College and may be used at the discretion of the governing board to meet current expenses for any purpose. I. Property Taxes The College s property taxes are levied each calendar year on all taxable real property located in the district. Pursuant to Board of Trustees resolution, property tax levies passed in December 2014 and 2013 were allocated 50% for each of the two years after the levy year. Property taxes and personal property replacement tax are recorded on the accrual basis. 44 Page

52 NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2015 and ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) I. Property Taxes (continued) The County Assessor is responsible for the assessment of all taxable real property within Cook County except for certain railroad property, which is assessed directly by the State. Reassessment is on a three-year schedule established by the County Assessor. The County Clerk computes the annual tax for each parcel of real property and prepares tax books used by the County Collector as the basis for issuing tax bills to all taxpayers in the County. Property taxes are collected by the County Collector and are submitted to the County Treasurer, who remits to each unit its respective share of the collections. Taxes levied in one year become due and payable in two installments during the following year, generally on March 1 st and August 30 th of each year. However, the second payment for the 2014 levy will not be due until later in fiscal year The first installment is an estimated bill and is approximately 55 percent of the prior year's tax bill. The second installment is based on the current levy, assessment, equalization and certificate to limit levy, if any; changes from the prior year will be reflected in the second installment bill. Taxes must be levied by the last Tuesday in December for the following collection year. The levy becomes an enforceable lien against the property as of January 1 of the levy year. The 2015 tax levy, which attached as an enforceable lien on property as of January 2015, has not been recorded as a receivable as of June 30, 2015 as the tax has not yet been levied and will not be levied until December 2015 and, therefore, the levy is not measurable at June 30, Public Act 89-1 placed limitations on the annual growth of most local governments property tax collections. Currently, the limitation is five percent, or the rate of inflation, whichever is less. In levy year 2014, the College s overall tax rate was limited to 1.5 percent plus an allowance for new property. The respective rates for the 2014, 2013 and 2012 tax levies, per $100 of assessed valuation, are reflected in the following table. 45 Page

53 NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2015 and ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) I. Property Taxes (continued) Property Taxes Rate Rate Rate Current: Education $ $ $ Operations and maintenance Liability, protection and settlement Audit Social Security Debt: Bond and interest TOTAL $ $ $ J. Capital Assets Capital assets include property, movable equipment and infrastructure assets, such as roads and sidewalks. Capital assets are defined by the College as assets with an initial unit cost of $10,000 or more and an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend the assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Property, plant and equipment of the College are depreciated using the straight-line method over the following useful lives (see Note 3 for further details). Assets Years (Prior to fiscal year 2009) Years (Effective fiscal year 2009) Buildings Building improvements 7 8 Land improvements 6 8 Equipment 7 8 Computer technology Page

54 NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2015 and ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) K. Classification of Revenues and Expenses The College has classified its revenues and expenses as either operating or non-operating. Operating revenue and expenses include activities that have the characteristics of exchange transactions, such as (a) student tuition and fees, (b) sales and services of auxiliary enterprises, net of scholarship discounts and allowances, (c) salaries and benefits and (d) materials and supplies. Non-operating revenue and expenses include activities that have the characteristics of non-exchange transactions, such as (a) local property taxes, (b) state appropriations, (c) most Federal, state and local grants and contracts and Federal appropriations and (d) gifts and contributions. L. Federal Financial Assistance Programs The College participates in federally funded Pell Grants, SEOG Grants, Federal Work-Study, Federal Family Education Loans and Perkins Loans programs. Federal programs are audited in accordance with the Single Audit Act Amendments of 1996, the U.S. Office of Management and Budget Revised Circular A-133 Audit of States, Local Governments and Non-Profit Organizations and the Compliance Supplement. M. On Behalf Payments for Fringe Benefits and Salaries Contributions made by the State of Illinois (the State) relating to the State Universities Retirement Systems (SURS or the System) and College Insurance Plan on behalf of the College s employees are recognized by the College as revenues and expenses. In fiscal years 2015 and 2014, the state made contributions of approximately $19.8 million and $17.1 million, respectively (see Note 5 for further details). N. Compensated Absences The College records a liability for employees vacation leave earned, but not taken. Employees are allowed to carry over a limited number of vacation days from year-to-year. The College has no commitment for accumulated sick leave for continuing employees, and no liability is recorded. Administrators who retire may elect to have unused sick leave credited towards years of service in SURS pension plan, or receive a prorated lump sum payment of accumulated unused sick leave. Eligible classified staff who retire may receive a prorated lump sum payment of accumulated unused sick leave. 47 Page

55 NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2015 and ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) O. Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. P. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, deferred outflows, liabilities and deferred inflows and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. 2. DEPOSITS AND INVESTMENTS The Illinois Public Community College Act and the Illinois Investment of the Public Funds Act, allow the College to make deposits in commercial banks and savings and loan institutions, and to invest in the following types of securities within certain limitations: United States Government securities, securities backed by the full faith and credit of the United States Government, bank certificates of deposit, commercial paper, money market, savings and loan securities and repurchase agreements. 48 Page

56 NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2015 and DEPOSITS AND INVESTMENTS (continued) It is the policy of the College to invest its funds in a manner which will provide the highest investment return with the maximum security while meeting the daily cash flow demands of the College and conforming to all state and local statutes governing the investment of public funds, using the prudent person standard for managing the overall portfolio. The primary objective of the policy is legality, safety (preservation of capital and protection of investment principal), liquidity and yield. The College s investment policy specifically prohibits the use of or the investment in derivatives. Investments are commingled in order to maximize earnings. College policy delegates these responsibilities to the Treasurer of the Board of Trustees as permitted by Illinois law. All funds deposited in the commingled portfolio are classified as investments even though some could be withdrawn on a day s notice. The following table presents the investments in debt securities as of June 30, 2015 and 2014 by type of investment. Investment, June 30, 2015 Investment Maturities in Years Investment Type Fair Value Less than Greater than 10 U.S. agency obligations $ 2,632,039 $ - $ 555,992 $ - $ 2,076,047 Negotiable CDs 9,234,015 4,211,980 5,022, U.S. Treasury notes 10,706,618 1,031,836 9,674, TOTAL $ 22,572,672 $ 5,243,816 $ 15,252,809 $ - $ 2,076,047 Investment, June 30, 2014 Investment Maturities in Years Investment Type Fair Value Less than Greater than 10 U.S. agency obligations $ 3,293,611 $ - $ 810,214 $ - $ 2,483,397 Negotiable CDs 16,900,330 14,177,075 2,723, U.S. Treasury notes 14,618,298 3,554,149 9,944,992 1,119,157 - TOTAL $ 34,812,239 $ 17,731,224 $ 13,478,461 $ 1,119,157 $ 2,483, Page

57 NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2015 and DEPOSITS AND INVESTMENTS (continued) Deposits Held at Financial Institutions Risks: Custodial credit risk for deposits with financial institutions is the risk that, in the event of bank failure, the College s deposits may not be returned. The College s investment policy requires pledging of collateral for all bank balances in excess of federal depository insurance with the collateral held by an agent of the College in the College s name. The State Treasurer maintains Illinois Funds Money Market at cost and fair value through daily adjustment in the interest earnings. The State Treasurer also maintains the average duration of the pool at less than 25 days. The fair value of the College s investment in the funds is the same as the value of the pool shares. The pool is audited annually by an outside independent auditor and copies of the report are distributed to participants. The pool had a Standard and Poor s AAAm rating as June 30, The relationship between the College and the investment agent is a direct contractual relationship and the investments are not supported by a transferable instrument that evidences ownership or creditorship. The Illinois School District Liquid Asset Fund Plus (ISDLAF+) Funds Money Market is valued at cost and fair value through daily adjustment in the interest earnings. The portfolio includes investments with a maximum remaining maturity of one year except for United States Government obligations that may have a remaining maturity of up to two years. The fair value of the College s investment in the funds is the same as the value of the pool shares. The pool is audited annually by an outside independent auditor and copies of the report are distributed to participants. The pool maintains a Standard and Poor s AAAm rating. The relationship between the College and the investment agent is a direct contractual relationship and the investments are not supported by a transferable instrument that evidences ownership or creditorship. The Illinois Metropolitan Investment Fund (IMET) is a governmental investment fund created under the Illinois Municipal Code. IMET actively manages two investment funds for municipal treasurers, official custodians of municipal funds and other public agencies in the State. IMET s offerings consist of the 1-3 Year Series and the Convenience Series. The 1-3 Year Series invests exclusively in United States Government backed securities (Treasury and agencies) and has a fluctuating net asset value and an average portfolio maturity of one to three years. The 1-3 Year Series is rated Aaa/MR1 by Moody s Investors Services. The Convenience Series is a short-term money market instrument collateralized via FDIC Insurance, the FHLB LOC Program, Unites States Government securities at 110% on bank deposits and United States Government securities in the repurchase agreement program. The relationship between the College and the investment agent is a direct contractual relationship and the investments are not supported by a transferable instrument that evidences ownership or creditorship. 50 Page

58 NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2015 and DEPOSITS AND INVESTMENTS (continued) Custodial Credit Risk for Investments: It is the risk that, in the event of the failure of the counterparty to the investment, the College will not be able to recover the value of its investments that are in the possession of an outside party. To limit its exposure, the College s investment policy requires all security transactions that are exposed to custodial credit risk to be processed on a delivery versus payment (DVP) basis with the underlying investments held by a third party acting as the College s agent separate from where the investment was purchased. Illinois Funds, ISDLAF+, IMET or the money market are not subject to custodial credit risk. Interest Rate Risk: In accordance with its investment policy, the College limits its investment portfolio to no more than 50% maturing more than one year from the date of purchase unless approved by the Board of Trustees through a special resolution. Credit Risk: The College limits its exposure to credit risk, the risk that the issuer of a debt security that will not pay its par value upon maturity, by primarily investing in obligations guaranteed by the United States Government or securities issued by agencies of the United States Government that are explicitly guaranteed by the United States Government. However, the College s investment policy does not specifically limit the College to these types of investments. 51 Page

59 NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2015 and CAPITAL ASSETS The following tables present the changes in the various capital asset categories for fiscal years 2015 and Capital Assets - Fiscal Year 2015 Balance Balance June 30, June 30, 2014 Additions Transfers Deletions 2015 Capital assets not being depreciated Land $ 11,052,086 $ - $ - $ - $ 11,052,086 Work in progress 52,925, ,716 (45,235,650) - 8,358,373 Total capital assets not depreciated 63,977, ,716 (45,235,650) - 19,410,459 Capital assets being depreciated Land improvements 2,278,659 2,148,558 1,093,041-5,520,258 Buildings 72,681,870 5,278,448 44,142, ,102,927 Equipment 2,665, , ,918,767 Computer technology 757,690 35, , ,235 Total capital assets being depreciated 78,383,795 7,716,069 45,235, , ,214,187 Less accumulated depreciation for Land improvements 1,206, , ,570,022 Buildings 33,875,502 3,129, ,004,836 Equipment 928, , ,271,288 Computer technology 464,704 90, , ,927 Total accumulated depreciation 36,475,295 3,926, ,327 40,280,073 Net capital assets being depreciated 41,908,500 3,789,964 45,235,650-90,934,114 NET CAPITAL ASSETS $ 105,885,893 $ 4,458,680 $ - $ - $ 110,344, Page

60 NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2015 and CAPITAL ASSETS (continued) Capital Assets - Fiscal Year 2014 Balance Balance June 30, June 30, 2013 Additions Transfers Deletions 2014 Capital assets not being depreciated Land $ 11,052,086 $ - $ - $ - $ 11,052,086 Work in progress 30,050,809 24,995,900 (2,121,402) - 52,925,307 Total capital assets not depreciated 41,102,895 24,995,900 (2,121,402) - 63,977,393 Capital assets being depreciated Land improvements 2,278, ,278,659 Buildings 69,196,878 1,363,590 2,121,402-72,681,870 Equipment 1,764, , ,665,576 Computer technology 1,156,196 46,545 - (445,051) 757,690 Total capital assets being depreciated 74,396,269 2,311,175 2,121,402 (445,051) 78,383,795 Less accumulated depreciation for Land improvements 1,029, , ,206,853 Buildings 31,638,138 2,237, ,875,502 Equipment 649, , ,236 Computer technology 814,341 95,414 - (445,051) 464,704 Total accumulated depreciation 34,132,455 2,787,891 - (445,051) 36,475,295 Net capital assets being depreciated 40,263,814 (476,716) 2,121,402-41,908,500 NET CAPITAL ASSETS $ 81,366,709 $ 24,519,184 $ - $ - $ 105,885, OTHER POSTEMPLOYMENT AND RELATED BENEFITS Plan Description In addition to providing the pension benefits described in Note 5, the College provides postemployment health care benefits (OPEB) for retired employees through a single-employer plan through the State of Illinois College Insurance Plan (CIP). The benefit, benefit levels, employee contributions and employer contributions are governed by the College and can be amended by the College through its personnel manual and union contracts. The plan is not accounted for as a trust fund, as an irrevocable trust, it has not been established to account for the plan. The plan does not issue a separate report. 53 Page

61 NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2015 and OTHER POSTEMPLOYMENT AND RELATED BENEFITS (continued) Benefits Provided The College provides postemployment health care and life insurance benefits to its retirees. All staff and administrative retirees who are eligible to retire under SURS will be reimbursed for the individual premium cost of CIP for the retiree, less the average employee individual premium contribution for the College-sponsored HMO plans for that year. The reimbursement will be made for a period of up to five years immediately following the effective date of retirement. Eligible full-time faculty retirees receive lump sum payments at retirement of either $6,000 or $10,000 depending upon years of service. Eligible administrative retirees may also select a $10,000 lump sum payment. Membership At June 30, 2015 and 2014, membership consisted of: Retirees and beneficiaries currently receiving benefits Terminated employees entitled to benefits but not yet receiving them - - Active employees - vested Active employees - nonvested TOTAL Participating Employers 1 1 Funding Policy The College negotiates the contribution percentages between the College and the retirees. Currently, the College contributes the entire cost of the premium, less the average employee individual premium contribution for the College s sponsored HMO plan. For the fiscal years ended June 30, 2015 and 2014, the College contributed $101,300 and $109,852, respectively. The College is not required and has not funded the costs of the benefits that will become due and payable in the future. 54 Page

62 NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2015 and OTHER POSTEMPLOYMENT AND RELATED BENEFITS (continued) Annual OPEB Costs and Net OPEB Obligation The College s annual OPEB cost, employer contributions, the percentage of annual OPEB cost contributed to the plan, the increase in net OPEB obligation and the net OPEB obligation for 2012 through 2015 are as follows: Fiscal Year Ended Annual OPEB Cost Employer Contributions Percentage of Annual OPEB Cost Contributed Increase in Net OPEB Obligation Net OPEB Obligation June 30, 2012 $ 275,198 $ 126, % $ 148,793 $ 5,653,614 June 30, ,513 91, % 59,692 5,713,306 June 30, , , % 19,306 5,732,612 June 30, 2015 (225,369) 101, % (326,669) 5,405,943 The net OPEB obligations (NOPEBO) as of June 30, 2015 and 2014 are recorded in other accrued liabilities on the statement of net position and are calculated as follows: Annual required contribution $ 760,863 $ 640,795 Interest on net OPEB obligation 171, ,399 Adjustment to annual required contribution (1,158,210) (683,036) Annual OPEB cost (225,369) 129,158 Contributions made (101,300) (109,852) Increase in net OPEB obligation (326,669) 19,306 Net OPEB obligation, beginning of year 5,732,612 5,713,306 NET OPEB OBLIGATION, END OF YEAR $ 5,405,943 $ 5,732,612 Funded Status and Funding Progress: The funded status of the plan as of June 30, 2015 and 2014 is as follows: Actuarial accrued liability (AAL) $ 2,951,250 $ 2,834,612 Actuarial value of plan assets - - Unfunded actuarial accrued liability (UAAL) 2,951,250 2,834,612 Funded ratio (actuarial value of plan assets/aal) 0.00% 0.00% Covered payroll (active plan members) $ 36,628,674 $ 37,846,537 UAAL as a percentage of covered payroll 8.06% 7.49% 55 Page

63 NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2015 and OTHER POSTEMPLOYMENT AND RELATED BENEFITS (continued) Annual OPEB Costs and Net OPEB Obligation (Continued) The plan s actuarial valuation includes estimating the value of the reported amounts, and assumptions about the probability of occurrence of events far into the future. The events include assumptions about future employment, mortality and the healthcare cost trend. The variables used to determine the funded status of the plan and the employer s annual required contributions are subject to continued revisions by comparing actual results to past expectations, and developing new estimates based on expectations for the future. The schedule of funding progress, presented as required supplementary information following the notes to financial statements, presents multi-year trend information that shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Actuarial Methods and Assumptions: Benefit projections, for financial reporting purposes, are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. The actuarial valuations include the entry-age actuarial cost method, a 3% investment rate of return for fiscal year 2014 and 2015, (net of administrative expenses) and an annual healthcare cost trend rate of 7% for fiscal year 2014 and Both annual rates include a 3% inflation assumption. The actuarial value of the assets was not determined as the College has not advance funded its obligation. The plan s unfunded actuarial accrued liability is being amortized as a level percentage of projected payrolls on a closed basis. The remaining amortization period at June 30, 2015 is five years. 56 Page

64 NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2015 and PENSION PLAN Plan Description The College contributes to the State Universities Retirement System of Illinois, a cost-sharing multiple-employer defined benefit plan with a special funding situation whereby the State makes substantially all actuarially determined required contributions on behalf of the participating employers. SURS was established July 21, 1941 to provide retirement annuities and other benefits for staff members and employees of state universities, certain affiliated organizations and certain other state educational and scientific agencies and for survivors, dependents and other beneficiaries of such employees. SURS is considered a component unit of the State s financial reporting entity and is included in the State s financial reports as a pension trust fund. SURS is governed by Section 5/15, Chapter 40 of the Illinois Compiled Statutes. SURS issues a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained by accessing the website at Benefits Provided A traditional benefit plan was established in Public Act enacted effective January 1, 1998, established an alternative defined benefit program known as the portable benefit package. The traditional and portable plan Tier 1 refers to members that began participation prior to January 1, Public Act revised the traditional and portable benefit plans for members who begin participation on or after January 1, 2011, and who do not have other eligible Illinois reciprocal system services. The revised plan is referred to as Tier 2. New employees are allowed six months after their date of hire to make an irrevocable election. A summary of the benefit provisions as of June 30, 2014 can be found in SURS comprehensive annual financial report (CAFR) notes to financial statements. 57 Page

65 NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2015 and PENSION PLAN (continued) Contributions The State is primarily responsible for funding SURS on behalf of the individual employers at an actuarially determined amount. Public Act provides a Statutory Funding Plan consisting of two parts: (i) a ramp-up period from 1996 to 2010 and (ii) a period of contributions equal to a level percentage of the payroll of active members of the System to reach 90% of the total actuarial accrued liability by the end of fiscal year Employer contributions from trust, federal and other funds are provided under Section (b) of the Illinois Pension Code and require employers to pay contributions which are sufficient to cover the accruing normal costs on behalf of applicable employees. The employer normal cost for fiscal year 2014 and 2015 was 11.91% and 11.71%, respectively, of employee payroll. The normal cost is equal to the value of current year s pension benefit and does not include any allocation for the past unfunded liability or interest on the unfunded liability. Plan members are required to contribute 8% of their annual covered salary. The contribution requirements of plan members and employers are established and may be amended by the Illinois General Assembly. Participating employers make contributions toward separately financed specific liabilities under Section (e) of the Illinois Pension Code (relating to contributions payable due to the employment of affected annuitants or specific return to work annuitants) and Section (g) (relating to contributions payable due to earning increases exceeding 6% during the final rate of earnings period). The financial statements for the fiscal year ended June 30, 2014 were not restated for the implementation of GASB Statement No 68. The following disclosures are in accordance with GASB Statement No Page

66 NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2015 and PENSION PLAN (continued) Funding Policy Plan members are required to contribute 8% of their annual covered salary and substantially all employer contributions are made by the State on behalf of the individual employers at an actuarially determined rate. The employer rate was 35.8% of annual covered payroll at June 30, The contribution requirements of plan members and employers are established and may be amended by the Illinois General Assembly. The employer contributions to SURS made by the College and the State are as follows: Year Ended June 30, College Percent of Required Contribution College State % $ 30,035 $ 9,466, % 40,590 12,406, % 29,792 16,353, % 33,178 16,961,647 The College implemented GASB Statement No. 68 for the fiscal year ended June 30, The following disclosures are in accordance with GASB Statement No. 68. A. Pension Liabilities, Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions Net Pension Liability At June 30, 2014, SURS reported a net pension liability of $21,790,983,139. The net pension liability was measured as of June 30, Page

67 NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2015 and PENSION PLAN (continued) Funding Policy (continued) A. Pension Liabilities, Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (continued) Employer Proportionate Share of Net Pension Liability The amount of the proportionate share of the net pension liability to be recognized for the College is $0. The proportionate share of the State s net pension liability associated with the College is $258,529,351 or %. This amount is not recognized in the financial statement due to the special funding situation. The net pension liability was measured as of June 30, 2014, and the total pension used to calculate the net pension liability was determined based on the June 30, 2013 actuarial valuation rolled forward. The basis of allocation used in the proportionate share of net pension liability is the actual reported pensionable earnings made to SURS during fiscal year Pension Expense At June 30, 2014, SURS reported a collective net pension expense of $1,650,338,263. Employer Proportionate Share of Pension Expense The College s proportionate share of collective net pension expense is recognized as both revenue and matching expense in the 2015 financial statements. The basis of allocation used in the proportionate share of collective pension expense is the actual reported pensionable earnings made to SURS during fiscal year As a result, the College recognized revenue and pension expense of $19,579,699 for the fiscal year ended June 30, Page

68 NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2015 and PENSION PLAN (continued) Funding Policy (continued) A. Pension Liabilities, Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (continued) Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions Deferred outflows of resources are the consumption of net position by the College that is applicable to future reporting periods. The College paid $44,739 in federal, trust or grant contributions for the fiscal year ended June 30, These contributions were made subsequent to the pension liability measurement date of June 30, 2014 and are recognized as deferred outflows of resources as of June 30, B. Assumptions and Other Inputs Actuarial Assumptions The actuarial assumptions used in the June 30, 2014 valuation were based on the results of an actuarial experience study for the period June 30, 2006 to 2010 and an economic study completed June The total pension liability in the June 30, 2014 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 2.75% Salary increases 3.75% to 12.00%, including inflation Investment rate of return 7.25% beginning with the actuarial valuation as of June 30, 2014 Mortality rates were based on the RP2000 Combined Mortality Table, projected with Scale AA to 2017, sexdistinct, with rates multiplied by 0.80 for males and 0.85 for females. 61 Page

69 NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2015 and PENSION PLAN (continued) Funding Policy (continued) B. Assumptions and Other Inputs (continued) Actuarial Assumptions (continued) The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return were adopted by the plan s trustees after considering input from the plan s investment consultant(s) and actuary(s). For each major asset class that is included in the pension plan s target asset allocation as of June 30, 2014, these best estimates are summarized in the following table: Asset Class Target Allocation Long-Term Expected Real Rate of Return U.S. Equity 31.00% 7.65% Private Equity 6.00% 8.65% Non-U.S. Equity 21.00% 7.85% Global Equity 8.00% 7.90% Fixed Income 19.00% 2.50% Treasury-Inflation Protected Securities 4.00% 2.30% Real Estate 6.00% 6.20% REITS 4.00% 6.20% Opportunity Fund 1.00% 2.50% Total 100% 5.00% Inflation 2.75% EXPECTED GEOMETRICAL NORMAL RETURN 7.75% 62 Page

70 NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2015 and PENSION PLAN (continued) Funding Policy (continued) B. Assumptions and Other Inputs (continued) Discount Rate A single discount rate of 7.090% was used to measure the total pension liability. This single discount rate was based on an expected rate of return on pension plan investments of 7.250% and a municipal bond rate of 4.290% (based on the weekly rate closest to but not later than the measurement date of the 20-Year Bond Buyer Index as published by the Federal Reserve). The projection of cash flows used to determine this single discount rate were the amounts of contributions attributable to current plan members and assumed that plan member contributions will be made at the current contribution rate and that employer contributions will be made at rates equal to the statutory contribution rates under the System s funding policy. Based on these assumptions, the pension plan s fiduciary net position and future contributions were sufficient to finance the benefit payments through the year As a result, the long-term expected rate of return on pension plan investments was applied to projected benefit payments through the year 2065, and the municipal bond rate was applied to all benefit payments after that date. Sensitivity of the System s Net Pension Liability to Changes in the Discount Rate Regarding the sensitivity of the net pension liability to changes in the single discount rate, the following presents the plan s net pension liability, calculated using a single discount rate of 7.09%, as well as what the plan s net pension liability would be if it were calculated using a single discount rate that is 1 percentage point lower or 1 percentage point higher: Current Single Discount Rate 1% Decrease Assumption 1% Increase (6.09%) (7.09%) (8.09%) Net pension liability $ 26,583,701,134 $ 21,790,983,139 $ 17,796,570, Page

71 NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2015 and PENSION PLAN (continued) Funding Policy (continued) B. Assumptions and Other Inputs (continued) Sensitivity of the System s Net Pension Liability to Changes in the Discount Rate (continued) Additional information regarding the SURS basic financial statements including the plan net position can be found in the SURS CAFR by accessing the website at 6. RETIREE HEALTH PLAN In addition to the pension plan described previously, the College contributes to CIP, a cost-sharing, multiple-employer defined benefit postemployment healthcare plan administered by the State. CIP provides health, vision and dental benefits to retired staff of participating community colleges. The benefits, employer, employee, retiree and state contributions are dictated by ILCS through the State Group Insurance Act of 1971 (Act) and can only be changed by the Illinois General Assembly. Separate financial statements, including required supplementary information, may be obtained from the Department of Healthcare and Family Services, 201 South Grand Avenue East, Springfield, Illinois The Act requires every active contributor (employee) of SURS to contribute 0.5% of covered payroll and every community college district to contribute 0.5% of covered payroll. Retirees pay a premium for coverage that is also determined by ILCS. The State Pension Funds Continuing Appropriation Act (40/ILCS 15/1.4) requires the State to make an annual appropriation to CIP to cover any expected expenditures in excess of the contributions by active employees, employers and retirees. The result is pay as you go financing of the plan. The employer contributions for the current and preceding four years are as follows: 64 Page

72 NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2015 and RETIREE HEALTH PLAN (continued) Years Ended June 30, College s Contribution as a % of Required Contribution College State % $ 185,756 $ 185, % 183, , % 184, , % 190, ,919 As disclosed in Note 1m, the State contribution to the CIP plan is reported as an on behalf payment in accordance with GASB Statement No. 24, Accounting and Financial Reporting for Certain Grants and Other Financial Assistance. 7. CONTINGENCIES AND COMMITMENTS As of June 30, 2015, the College has a total of $9.9 million outstanding commitments for the following; employee health benefits ($302 thousand); instructional programs service ($1.6 million); student services ($1.1 million); operating and maintenance ($40 thousand); general administrative ($1.4 million); academic support ($212 thousand); and construction ($5.2 million). The College is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, in the opinion of the College s attorney, the resolution of these matters will not have a material adverse effect on the financial condition of the College. 65 Page

73 NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2015 and RISK MANAGEMENT The College participates in the Illinois Community College Risk Management Consortium (Consortium) which operates as a public entity risk pool for the member colleges. The Consortium was established in 1981 by several Chicago area community colleges as a means of reducing the cost of general liability insurance for its college members. The main purpose of the Consortium is to jointly self-insure certain risks up to an agreed upon retention limit and to obtain excess catastrophic coverage and aggregate stoploss reinsurance over the selected retention limit. The excess coverage including underlying policies coverage is as follows; crisis response ($250 thousand); identity protection and crime ($1 million); boiler and machinery ($100 million); property ($301 million); general liability ($26 million); auto liability, law enforcement, school board legal liability, and employee liability; workers compensation ($21.7 million); and foreign liability ($22 million). The insurance cost for fiscal year 2015 and 2014 was $654,682 and $677,105, respectively. The College also received $155,172 and $73,859 in 2015 and 2014, respectively, in dividends due to favorable loss experience in prior years. Since the Consortium requests initial payments to cover substantially any losses to be incurred for that policy year, the College anticipates no future liabilities for incurred losses. Through June 30, 2011, the College maintained a comprehensive self-insurance plan through a third party administrator, as an option, for its employees health and dental coverage. The College maintained specific insurance of $70,000 per individual to limit its liability exposure. The College also maintained adequate reserves to cover potential losses. The following is a reconciliation of changes in the reserve in health and dental care costs for the current and prior two fiscal years. The reserve is based on deposits net of charges for the past ten years and is required by employee contractual agreements. Effective July 1, 2011, the College discontinued its self-insured health plan only and began participating in the Community College Health Consortium for the healthcare portion only. The consortium is a public entity risk pool to provide health insurance coverage to its employees. The following is a reconciliation of changes in the reserve in health care costs for the current and prior two fiscal years (000) (000) (000) Reserve for health care costs at July 1 $ 45 $ 30 $ 15 Incurred claims/changes in estimates Payments on claims (413) (375) (41) RESERVE FOR HEALTH CARE COSTS AT JUNE 30 $ 64 $ 45 $ Page

74 NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2015 and LONG-TERM OBLIGATIONS Schedule of the College s long-term obligation activity for the years ended June 30, 2015 and 2014: Long-Term Obligations - Fiscal Year 2015 Balance June 30, 2014 Additions Deletions Balance June 30, 2015 Amounts Due Within One Year Noncurrent Liability Compensated absences $ 1,901,286 $ 81,262 $ 30,439 $ 1,952,109 $ 526,145 $ 1,425,964 Other accrued liabilities Retirement reserves 79, ,744 74, , , ,288 Dental insurance reserve 45, , ,264 64,489 64,489 - Net OPEB obligation 5,732, ,669 5,405,943-5,405,943 Subtotal, other 5,857, , ,497 5,892, ,019 5,579,231 General obligation bonds 23,510,000 13,970,000 2,110,000 35,370,000 2,195,000 33,175,000 Bond premium 2,509,572 1,663, ,316 3,861, ,041 3,522,683 Subtotal 26,019,572 15,633,468 2,421,316 39,231,724 2,534,041 36,697,683 Debt certificate 14,530,000-14,530, TOTAL OBLIGATIONS $ 48,308,108 $ 16,563,227 $ 17,795,252 $ 47,076,083 $ 3,373,205 $ 43,702,878 Long-Term Obligations - Fiscal Year 2014 Balance June 30, 2013 Additions Deletions Balance June 30, 2014 Amounts Due Within One Year Noncurrent Liability Compensated absences $ 1,820,409 $ 535,979 $ 455,102 $ 1,901,286 $ 475,322 $ 1,425,964 Other accrued liabilities Retirement reserves 408, ,841 79,638 39,429 40,209 Dental insurance reserve 30, , ,000 45,000 45,000 - Net OPEB obligation 5,713, , ,852 5,732,612-5,732,612 Subtotal, other 6,151, , ,693 5,857,250 84,429 5,772,821 General obligation bonds 25,540,000-2,030,000 23,510,000 2,110,000 21,400,000 Bond premium 2,737, ,143 2,509,572-2,509,572 Subtotal 28,277,715-2,258,143 26,019,572 2,110,000 23,909,572 Debt certificate - 14,530,000-14,530,000-14,530,000 TOTAL OBLIGATIONS $ 36,249,909 $ 15,585,137 $ 3,526,938 $ 48,308,108 $ 2,669,751 $ 45,638, Page

75 NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2015 and LONG-TERM OBLIGATIONS (continued) General Obligation Limited Tax Bonds, Series 2014 On September 23, 2014, the College issued the General Obligation Limited Tax Bonds, Series 2014 in the amount of $13,970,000 to refund the Debt Certificates, Series As a result of the refunding, the College will realize an increase in cash flows of $3,334,660 and an economic loss of $1,209,324. This is due to the 2014 Debt Certificates carrying a short-term interest rate while the series 2014 General Obligation Limited Tax Bonds are at a long-term interest rate. The 2014 Debt Certificates were called and paid in full in the current fiscal year. The bonds were issued to pay the College s $14.5 million Debt Certificates, Series 2014 issued on May 7, 2014, which certificates were issued to finance various capital projects including the construction and remodeling of various campus buildings and infrastructure improvements. The bonds bear a fixed interest at varying rates ranging from 3.13% to 5.00% per annum. The Bonds maturing on or after December 1, 2025 are subject to optional redemption prior to maturity at the redemption price of par plus accrued interest to the redemption date. General obligation debt issue date September 23, 2014 Current portion $ - Long-term portion $ 13,970,000 Interest rate Fixed interest at varying rates ranging from 2.25% to 5.00% Final payment date December 1, 2029 Payment dates June 1 and December 1 68 Page

76 NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2015 and LONG-TERM OBLIGATIONS (continued) General Obligation Limited Tax Bonds, Series 2014 (continued) Fiscal Year Ending June 30, Principal Interest 2016 $ - $ 587, , , , , , , , , ,025, , ,725, , ,860, , ,005, , ,100,000 98, ,255,000 25,100 TOTAL $ 13,970,000 $ 7,002,838 Debt Certificates, Series 2014 On May 7, 2014, the College issued Debt Certificates, Series 2014 in the amount of $14,530,000 to finance various capital projects including the construction and remodeling of various campus buildings and infrastructure improvements. The certificates shall bear interest at a variable interest rate per annum. The initial interest rate for the period through June 1, 2015 shall be the rate equal to of the sum of 69% of the LIBOR rate for the applicable interest rate period plus.052% (.62626%). The term interest rate effective June 2, 2015 shall be the rate equal to of the sum of 79% of the LIBOR rate for the applicable interest rate period plus.130% ( %). At the option of the College, the certificates may be redeemed prior to maturity, in whole or in part as determined by the College, on any date. The certificates were called and paid off during the fiscal year ended June 30, Debt certificates issue date May 7, 2014 Current portion $ - Long-term portion $ 14,530,000 Interest rate Variable from % to % Final payment date December 1, 2025 Payment dates June 1 and December 1 69 Page

77 NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2015 and LONG-TERM OBLIGATIONS (continued) General Obligation Limited Tax Bonds, Series 2011 On September 8, 2011, the College issued General Obligation Limited Tax Bonds, Series 2011 in the amount of $27,245,000. The bonds were issued to pay the College s $30.1 million Debt Certificates, Series 2011 issued on June 1, 2011, which certificates were issued to finance the construction of the Science and Health Careers Building pursuant to the College s five-year Facilities Master Plan. The bonds bear a fixed interest at varying rates ranging from 2.25% to 5.00% per annum. The bonds maturing on or after December 1, 2022 are subject to optional redemption prior to maturity at the redemption price of par plus accrued interest to the redemption date. General obligation debt issue date September 8, 2011 Current portion $ 2,195,000 Long-term portion $ 21,400,000 Interest rate Fixed interest at varying rates ranging from 2.25% to 5.00% Final payment date December 1, 2024 Payment dates June 1 and December 1 Fiscal Year Ending June 30, Principal Interest 2016 $ 2,195,000 $ 837, ,280, , ,945, , ,020, , ,075, , ,155, , ,730, ,069 TOTAL $ 21,400,000 $ 4,555,599 A computation of the legal debt margin of the College as of June 30, 2015 is as follows: Assessed valuation tax levy $ 19,191,923,740 Debt limit % of assessed valuation $ 551,767,808 Less applicable debt: General obligation bonds, Series ,400,000 General obligation bonds, Series ,970,000 LEGAL DEBT MARGIN $ 516,397, Page

78 NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2015 and COMPONENT UNIT The Foundation maintains its accounts in accordance with the principles and practices of fund accounting. Fund accounting is the procedure by which resources for various purposes are classified for accounting purposes in accordance with activities or objectives specified by donors. Accordingly, net assets and changes therein are classified as follows: Permanently Restricted Net Assets - Net assets subject to donor-imposed stipulations that they be maintained permanently by the Foundation. Generally, the donors of these assets permit the Foundation to use all or part of the income earned on related investments for general or specific purposes. Temporarily Restricted Net Assets - Net assets subject to donor-imposed stipulations that will be met by actions of the Foundation and/or passage of time. Unrestricted Undesignated Net Assets - Net assets not subject to donor-imposed restrictions. Unrestricted Designated Net Assets - Net assets not subject to donor-imposed restrictions but subject to Foundation Board imposed stipulations. Revenues are reported as increases in unrestricted net assets classification unless use of the related assets is limited by donor-imposed restrictions. The contributions, including unconditional promises to give, are recognized as revenue in the period received. Conditional promises to give are not recognized as revenue until the conditions on which they depend are substantially met. Contributions for in-kind gifts from outside sources are not recorded in the Foundation s financial records, but are accounted for and acknowledged separately. Investments are reported at fair value based upon quoted market prices. Expenses are reported as decreases in unrestricted, undesignated or unrestricted designated net assets as appropriate. Gains and losses on investments and other assets or liabilities are reported as increases or decreases in unrestricted, undesignated or unrestricted designated net assets unless their use is restricted by explicit donor stipulation or by law. 71 Page

79 DES PLAINES, ILLINOIS REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF EMPLOYER CONTRIBUTIONS AND FUNDED STATUS OTHER POSTEMPLOYMENT BENEFIT PLANS Last Six Fiscal Years Ended June 30, 2015 Fiscal Years Ended June 30, Employer contributions $ 101,300 $ 109,852 $ 91,821 $ 126,405 $ 54,000 $ 62,225 Annual required contributions (ARC) 760, , , , , ,137 Percentage contributed 13.31% 17.14% 13.81% 19.01% 8.32% 9.59% Funded status and funding progress Actuarial accrued liability (AAL) $ 2,951,250 $ 2,834,612 $ 2,834,612 $ 3,990,361 $ 3,990,361 $ 4,039,165 Actuarial value of plan assets Unfunded actuarial accrued liability (UAAL) $ 2,951,250 $ 2,834,612 $ 2,834,612 $ 3,990,361 $ 3,990,361 $ 4,039,165 Funded ratio (actuarial value of plan assets/aal) 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Covered payroll (active plan members) (A) $ 36,628,674 $ 37,846,537 $ 36,744,211 $ 33,645,584 $ 33,211,952 $ 35,774,645 UAAL as a percentage of covered payroll 8.06% 7.49% 7.71% 11.86% 12.01% 11.29% (A) Includes estimates 72 Page

80 DES PLAINES, ILLINOIS REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN THE EMPLOYER'S NET PENSION LIABILITY AND RELATED RATIOS STATE UNIVERSITIES RETIREMENT SYSTEM OF ILLINOIS June 30, (a) Proportion percentage of the collective net pension liability 0.00% (b) Proportion amount of the collective net pension $ - (c) Portion of non-employer contributing entities total proportion of collective net pension liability associated with employer 258,529,351 TOTAL (b) + (c) $ 258,529,351 Employer covered-employee payroll $ 54,670,746 Proportion of collective net pension liability associated with employer as a percentage of covered-employee payroll % SURS plan net position as a percentage of total pension liability 44.39% OAKTON COMMUNITY COLLEGE - DISTRICT NUMBER 535 Federal, trust, grant and other contribution $ 44,739 Contribution in relation to required contribution 44,739 CONTRIBUTION DEFCIENCY (Excess) $ - Employer covered-employee payroll $ 54,670,746 Contributions as a percentage of covered-employee payroll 0.08% Note: The System implemented GASB No. 68 in fiscal year The information above is presented for as many years as available. The schedule is intended to show information for ten years. Notes to Required Supplementary Information Changes of benefit terms - There were no benefit changes recognized in the total pension liability as of June 30, Changes of assumptions - In accordance with Illinois Compiled Statutes, an actuarial review is to be performed at least once every five years to determine the reasonableness of actuarial assumptions regarding the retirement, disability, mortality, turnover, interest and salary of the members and benefit recipients of SURS. An experience review for the years June 30, 2010 to June 30, 2014 was performed in February 2015, resulting in the adoption of new assumptions as of June 30, There are no changes of assumptions that affect measurement of the total collective pension liability since the prior measurement date. 73 Page

81

82 STATISTICAL SECTION (Unaudited) This part of the Oakton Community College, Community College District No. 535 s statistical section of the comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures and required supplementary information says about the College s overall financial health. Contents Page(s) Financial Trends These schedules contain trend information to help the reader understand how the College s financial performance and well-being have changed over time Revenue Capacity These schedules contain information to help the reader assess the College s most significant local revenue source, the property tax, and tuition and fees data Debt Capacity These schedules present information to help the reader assess the affordability of the College s current levels of outstanding debt and the College s ability to issue additional debt in the future Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the College s financial activities take place Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the College s financial report relates to the services the College provides and the activities it performs Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. 74 P a g e 74 Page

83 DES PLAINES, ILLINOIS Table 1 FINANCIAL TRENDS NET POSITION BY COMPONENT Last Ten Fiscal Years (In Thousands) 2012 Fiscal Year (Restated) BUSINESS-TYPE ACTIVITIES Net investment in capital assets $ 71,113 $ 71,264 $ 60,780 $ 53,186 Restricted Capital projects 5,450 2,399 4,918 3,317 Other purposes 19,152 18,140 18,448 17,237 Unrestricted 82,053 82,881 82,576 84,185 TOTAL BUSINESS-TYPE ACTIVITIES $ 177,768 $ 174,684 $ 166,722 $ 157,925 Data Source Audited Financial Statements 75 Page

84 Table (Restated) (Restated) $ 53,422 $ 56,385 $ 58,752 $ 61,022 $ 62,049 $ 62,309 5,316 5,610 6,120 6,135 5,827 6,411 16,979 16,806 16,551 16,321 15,919 15,727 76,876 67,266 59,800 55,579 48,662 41,784 $ 152,593 $ 146,067 $ 141,223 $ 139,057 $ 132,457 $ 126, Page

85 DES PLAINES, ILLINOIS Table 2 FINANCIAL TRENDS CHANGES IN NET POSITION Last Ten Fiscal Years (In Thousands) 2012 Fiscal Year (Restated) OPERATING REVENUES Student tuition and fees $ 17,007 $ 15,835 $ 16,097 $ 15,614 Chargeback revenue Auxiliary enterprises revenue 6,515 6,370 6,655 6,994 Other operating revenue 871 1,231 1,320 1,742 Total operating revenues 24,453 23,505 24,147 24,445 OPERATING EXPENSES Instruction 46,510 43,718 45,094 43,578 Academic support 11,300 11,045 9,858 9,871 Student services 8,543 8,321 7,916 7,971 Public services Operation and maintenance of plant 10,516 9,358 8,619 8,418 General administration 6,700 6,228 5,845 5,490 Institutional support 3,777 2,512 1,907 2,354 Financial aid 4,033 4,032 4,326 5,029 Auxiliary services 10,264 10,050 9,439 9,044 Depreciation 3,926 2,788 2,548 2,548 Total operating expenses 106,549 98,849 96,407 95,238 OPERATING INCOME (LOSS) (82,096) (75,344) (72,260) (70,793) NON-OPERATING REVENUES (EXPENSES) State grants and contracts 27,364 24,750 24,257 21,094 Property taxes (1) 47,914 46,959 45,596 42,516 Personal property replacement tax 1,091 1, Federal grants and contracts 9,357 9,576 9,647 10,458 Local grants and contracts 805 1,274 1, Investment income (104) ,483 Interest expense and fiscal charges (1,247) (789) (848) (1,124) Total non-operating revenues (expenses) 85,180 83,304 81,057 76,125 CHANGE IN NET POSITION BEFORE CAPITAL CONTRIBUTIONS 3,084 7,960 8,797 5,332 CAPITAL CONTRIBUTIONS Capital appropriations Capital gifts and grants Total capital contributions CHANGE IN NET POSITION $ 3,084 $ 7,960 $ 8,797 $ 5,332 (1) The College is subject to two property tax caps in Illinois whereby the increase in the levy from year-to-year is limited to the lesser of 5% or the consumer price index for the State as determined by the Illinois Department of Revenue, and individual rates are limited by maximum rates established by Illinois Compiled Statutes. Data Source Audited Financial Statements 77 Page

86 Table (Restated) (Restated) $ 16,048 $ 16,047 $ 16,161 $ 14,716 $ 12,897 $ 11, ,597 7,856 7,668 8,206 9,418 9,425 1,577 1, ,326 25,235 24,200 23,199 22,510 21,261 40,505 36,750 33,201 29,585 30,615 28,615 9,399 9,487 9,042 8,459 4,076 4,576 7,338 7,111 6,792 6,540 5,734 5, ,126 1,095 2,278 2,484 2,060 7,603 7,460 7,276 6,732 5,649 5,460 4,984 4,973 4,692 4,133 3,753 3,552 2,550 1,727 2,099 2,122 4,030 4,840 5,369 4,755 2,586 1,847 1,516 1,234 9,173 11,877 11,569 11,601 9,213 9,430 3,598 4,298 4,237 3,180 2,762 3,110 91,371 89,564 82,589 76,477 69,832 68,065 (66,045) (64,329) (58,389) (53,278) (47,322) (46,804) 18,357 16,918 13,680 13,149 10,158 9,161 40,142 38,954 37,496 35,301 33,828 32,095 1, ,186 1,076 1,023 11,120 9,041 5,620 4,424 3,928 3, ,238 2,585 2,843 3,819 4,235 1,745 (92) ,571 68,685 60,729 58,035 53,493 47,934 6,526 4,356 2,340 4,757 6,171 1, $ 6,526 $ 4,487 $ 2,524 $ 5,454 $ 6,224 $ 1, Page

87 DES PLAINES, ILLINOIS Table 3 REVENUE CAPACITY ASSESSED VALUE AND ACTUAL VALUE OF TAXABLE PROPERTY Last Ten Levy Years (In Thousands) Total Total Taxable Direct Estimated Estimated Levy Residential Commercial Industrial Farm Railroad Assessed Tax Actual Actual Year Property Property Property Property Property Value Rate Value Value 2014 DNA DNA DNA DNA DNA $ 19,191, $ 57,575, % 2013 $ 13,816,508 $ 3,332,005 $ 1,748,869 $ 167 $ 11,050 18,908, ,725, % ,113,637 3,577,610 1,908, ,117 21,608, ,826, % ,430,003 3,825,993 2,036, ,762 23,301, ,905, % ,075,287 4,487,649 2,316, ,455 25,888, ,664, % ,534,469 4,624,228 2,350, ,824 28,516, ,548, % ,368,360 4,990,847 2,728, ,978 28,094, ,282, % ,911,635 4,862,538 2,593, ,323 26,373, ,120, % ,891,922 4,188,105 2,297, ,679 21,382, ,148, % ,658,336 4,251,755 2,337, ,564 21,252, ,756, % DNA: Data not available Data Source Offices of the County Clerk for Cook County 79 Page

88 DES PLAINES, ILLINOIS Table 4 REVENUE CAPACITY PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS Last Ten Levy Years Tax Levy Year TAX RATES (1) District Rates Education Audit Operations and maintenance purposes (unrestricted) Liability, protection and settlement Bond and interest Social Security and Medicare Total district rates (1) Others County of Cook Public safety Health facilities Other funds Cook County Forest Preserve Metropolitan Water Reclamation District Suburban T.B. Sanitarium City of Park Ridge City of Park Ridge Library Park Ridge Recreation and Park District Town of Maine Consolidated Elections Maine Township General Assistance Maine Township Road and Bridge Northwest Mosquito Abatemetn School District Maine Township High School District Data Sources Total rates (2) (1) The direct tax rates reported for the College are those of Cook County (2) Propery taxes rates report issued by the Cook County Clerk David Orr 80 Page

89 DES PLAINES, ILLINOIS Table 5 REVENUE CAPACITY PRINCIPAL PROPERTY TAXPAYERS Current Levy Year and Nine Years Ago 2014 Levy Year 2005 Levy Year Percentage Percentage of Total of Total Assessed District Assessed District Value Assessed Value Assessed Taxpayer Type of Business (million) Rank Valuation (million) Rank Valuation WFLD Processing Dept. Old Orchard Shopping Center $ % West Coast Estates Northbrook Court shopping center % % Alllstate Insurance Insurance (office buildings) % % Midwest Gaming Special commercial improvements % Mid America Asset Mgt One-story stores and shopping plazas % Jones Lang LaSalle Numerous commercial buildings % over three stories, parking lots, etc. Kraft General Foods and Kraft, Inc. Corporate headquarters, research and % % development, food sales and distribution Walgreens Industrial property, commercial property % over three stories and one story stores DDTC VLG Crossing Three Shopping Centers % Forest City Numerous properties including one-story % store, 2-3 story commercial all or part retail, commercial buildings of three stories (office) and industrial properties Westfield Corp. Old Orchard Shopping Center % Inland Real Estate Real property % Duke Realty Commercial buildings over three stories % One story public parking garage Industrial properties Milwaukee Golf Development Golf Mill Shopping Center % Lake Cook 3200, Lake Cook Village Square Shopping Center % Mid America, Lake Cook Corp Target Discount department stores % J. Freed & Assoc. L.L.C. Shopping centers and numerous % commercial properties Note: Includes only those parcels with a 2014 equalized assessed value of approximately $590,000 or over. Data Sources Cook County and various township assessor's offices $ % $ % 81 Page

90 DES PLAINES, ILLINOIS Table 6 REVENUE CAPACITY PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Levy Years Percent of Taxes Total Collected Total Extended Direct Collected During Collected Collected Tax Levy Assessed Tax Taxes Through Year Ended Through Through Cap Year Valuation (3) Rate (1) Extended June 30, 2014 June 30, 2015 June 30, 2015 (2) June 30, 2014 Limit 2014 $ 19,191,923, $ 49,515,163 $ - $ 25,093,250 $ 25,093, % 0.76% ,908,599, ,406,014 24,625,661 23,364,488 47,990, % 1.50% ,608,874, ,323,435 46,878, ,318 47,025, % 1.70% ,301,807, ,671,543 45,360,042 (308,583) 45,051, % 3.00% ,888,213, ,421,141 40,790,582 (194,080) 40,596, % 1.50% ,516,303, ,922,825 39,105,871 (165,579) 38,940, % 2.70% ,094,003, ,331,605 38,403,338 (60,254) 38,343, % 0.10% ,373,473, ,186,597 36,181,102 (28,800) 36,152, % 4.10% ,382,796, ,495,442 34,832,450 (3,431) 34,829, % 2.50% ,252,314, ,577,351 32,838,717 (1,863) 32,836, % 3.40% (1) The direct tax rates reported for the College are those of Cook County, as it comprises approximately 100% of Oakton Community College District No (2) Taxes are generally due on March 1st and September 1st of the calendar year subsequent to the levy year. (3) Properties located in our district are reassessed every three years by the County Assessor's Office. The changes in values are the result of property reassessment. The next reassessment will occur in Data Sources District property tax records. Office of the County Clerk for Cook County. 82 Page

91 DES PLAINES, ILLINOIS Table 7 REVENUE CAPACITY ENROLLMENT, TUITION AND FEE RATES, CREDIT HOURS CLAIMED AND TUITION AND FEE REVENUE Last Ten Fiscal Years Tuition and Fee Revenues (1) Tuition and Fee Rates Education In-District Out-of-District Out-of-State Purpose and Fall Term Census Day Enrollment Tuition and Tuition and Tuition and Total Operations and Auxiliary FTE Headcount Headcount Fees per Fees per Fees per Credit Maintenance Enterprises Total Fiscal Credit Credit Noncredit Semester Semester Semester Hours Purposes and Other All Year Courses Courses Courses Hour Hour Hour Claimed Subfunds Subfunds Subfunds ,479 9,883 6,049 $ $ $ ,620 $ 22,042,638 $ 3,228,835 $ 25,271, ,549 9,963 14, ,443 20,991,754 3,216,889 24,208, ,743 10,348 8, ,072 21,411,031 3,282,754 24,693, ,956 10,716 16, ,384 21,467,746 2,973,165 24,440, ,064 10,717 17, ,552 22,068,991 2,968,371 25,037, ,973 10,574 23, ,554 20,650,771 2,924,646 23,575, ,529 9,825 17, ,027 19,600,548 2,635,612 22,236, ,290 9,311 16, ,129 17,581,995 2,831,510 20,413, ,491 9,779 21, ,887 15,749,037 2,572,468 18,321, ,383 9,697 18, ,486 14,034,026 2,705,330 16,739,356 (1) Effective fiscal year 2007, the College adopted a new reporting requirement in which tuition and fees are adjusted for scholarship allowance. Data Source College records 83 Page

92 DES PLAINES, ILLINOIS Table 8 DEBT CAPACITY DIRECT AND OVERLAPPING BONDED DEBT June 30, 2015 Percentage* Gross of Debt Government's Bonded Applicable to Share of Governmental Unit Debt Government Debt Oakton Community College $ 35,370, % $ 35,370,000 COUNTIES AND LARGE UNITS Cook County 3,466,976, % 519,973,706 Cook County Forest Preserve 118,610,000 (4) % 17,789,009 Metropolitan Water Reclamation District 2,619,000,317 (2) % 400,492,290 City of Chicago 7,990,426,735 (4)(5) % 3,963,252 Chicago Park District 473,735,000 (4) % 234,973 Chicago Board of Education 196,470,000 (3)(4)(5) % 97,449 MUNICIPALITIES Village of Deerfield 60,635, % 6,448,593 City of Des Plaines 645, % 537,235 City of Evanston 147,620,000 (7) % 147,620,000 Evanston SSA #5 150, % 150,000 Village of Glencoe 13,225, % 13,225,000 Village of Glenview 46,390,000 (6) % 46,390,000 Glenview SSA #35 7, % 7,340 Glenview SSA #62 262, % 262,206 Glenview SSA #63 72, % 72,794 Village of Golf 2,040, % 2,040,000 Village of Kenilworth 11,484,612 (4) % 11,484,612 Village of Lincolnwood 2,285, % 2,285,000 Village of Morton Grove 22,440, % 22,440,000 Village of Mount Prospect 48,075, % 94,083 Village of Niles 12,420, % 12,420,000 Village of Northbrook 84,520, % 83,617,580 Village of Northfield 2,585,000 (4) % 2,585,000 Village of Northfield SSA #04-1 1,070, % 1,070,000 City of Park Ridge 38,880, % 38,880,000 City of Prospect Heights 13,365, % 648,603 Village of Rosemont 110,295,000 (6) % 38,649,574 Village of Skokie 54,205, % 54,205,000 Village of Wilmette 92,695, % 92,695,000 Village of Winnetka 16,500, % 16,500,000 SCHOOL DISTRICTS School District Number 26 10,610, % 1,315,873 School District Number ,500 (1) % 599,500 School District Number , % 345,000 School District Number 34 14,635, % 14,635,000 School District Number 35 16,305, % 16,305,000 School District Number 36 48,671,191 (1) % 48,671,191 School District Number 37 4,450,546 (1) % 4,450,546 School District Number 38 8,340, % 8,340,000 School District Number 39 12,715,000 (5) % 12,715,000 School District Number 62 - (4) % - School District Number 63 14,420, % 14,420,000 School District Number 64 13,975, % 13,975,000 School District Number 65 79,180,542 (1) % 79,180, Page

93 DES PLAINES, ILLINOIS Table 8 DEBT CAPACITY DIRECT AND OVERLAPPING BONDED DEBT (continued) June 30, 2015 Percentage* of Debt Gross Applicable to Government's Governmental Unit Bonded Debt Government Share of Debt SCHOOL DISTRICTS (Continued) School District Number 67 $ 12,020,470 (1) % $ 12,020,470 School District Number 68 2,085, % 2,085,000 School District Number 69 9,665, % 9,665,000 School District Number 70 3,630, % 3,630,000 School District Number 72 1,350, % 1,350,000 School District Number ,133 (1) % 922,133 School District Number 73 1/2 4,715, % 4,715,000 School District Number , % 7 School District Number 79 2,400, % 2,880 HIGH SCHOOL DISTRICTS High School District Number ,650,443 (1) % 22,650,443 High School District Number ,480,000 (4) % 101,480,000 High School District Number 207 8,570, % 8,307,689 High School District Number ,800,000 (5) % 118,856 High School District Number ,823,952 (1) % 146,823,952 High School District Number ,682,746 (1) % 78,682,746 PARK DISTRICTS Deerfield 2,230,000 (4) % 135,105 Des Plaines 5,412, % 5,322,007 Glencoe 10,260, % 10,260,000 Glenview 13,075,000 (4) % 13,075,000 Golf Maine 805, % 805,000 Morton Grove 750, % 750,000 Niles 995,000 (4) % 995,000 Northbrook 5,160, % 5,109,721 Park Ridge 20,565, % 20,565,000 Rosemont 937, % 346,852 Skokie 4,515,000 (4) % 4,515,000 Wilmette 17,902, % 17,902,000 Winnetka 6,200, % 6,200,000 MISCELLANEOUS Niles Library District 620, % 620,000 Woodley Sanitary District - Special Service Area #1 195, % 195,000 TOTAL DIRECT AND OVERLAPPING DEBT $ 2,266,450,812 *2014 Equalized Assessed Values were used for the calculations in the preparation of this statement. (1) Includes original principal amounts outstanding of Capital Appreciation Bonds. (2) Includes IEPA Revolving Loan Fund Bonds. (3) Includes Public Building Commission Revenue Bonds payable from lease payments secured by ad valorem taxes on all property in the taxing body. (4) Excludes outstanding principal amounts of General Obligation Alternate Revenue Source Bonds which are expected to be paid from sources other than general taxation. (5) Excludes General Obligation Notes (Commercial Paper) and/or Certificates or TANs. (6) Excludes self-supporting bonds for which abatements are filed annually. (7) Includes self-supporting bonds. Data Sources District records and Offices of the County Clerk for Cook County, Comptroller, the Treasurer of the Metropolitan Water Reclamation District and various underlying and overlapping districts. 85 Page

94 DES PLAINES, ILLINOIS Table 9 DEBT CAPACITY LEGAL DEBT MARGIN INFORMATION Last Ten Levy Years Net Debt Debt Limit Net Debt Applicable to Debt (Assessed Value Applicable Legal Debt Limit as Tax Assessed Limit x Debt to Debt Debt a Percentage Year Value (2) Rate Limit Rate) Limit (1) Margin of Debt Limit 2014 $ 19,191,923, % $ 551,767,808 $ 37,480,000 $ 514,287, % ,908,599, % 543,622,228 38,040, ,582, % ,608,874, % 621,255,147 25,540, ,715, % ,301,807, % 669,926,977 27,245, ,681, % ,888,213, % 744,286,140 30,100, ,186, % ,516,303, % 819,843, ,843, % ,094,003, % 807,702, ,702, % ,373,473, % 758,237, ,237, % ,382,796, % 614,755, ,755, % ,252,314, % 611,004, ,004, % (1) The College has not had any debt outstanding including our 2011 debt certificates associated with our tax levy since (2) Properties located in our district are reassessed every three years by the County Assessor's Office. The increase (decrease) in values for tax years 2004, 2007, 2010 and 2013 is mainly attributed to changes in values as a result of the completed property assessment. The next reassessment will occur in Data Sources Oakton Community College records, Comprehensive Annual Financial Reports and Cook County records. 86 Page

95 DES PLAINES, ILLINOIS Table 10 DEBT CAPACITY RATIOS OF OUTSTANDING DEBT BY TYPE Last Ten Fiscal Years Percentage of Total District Total Outstanding Outstanding Fiscal General Debt Total Estimated Debt to Estimated District Debt Year Obligation Certificate Primary Assessed Assessed Population Per Ended Bonds Obligations Government Value Value (Estimated) Capita 2015 $ 39,231,724 $ - $ 39,231,724 $ 19,191,923, % 435,721 $ ,019,572 14,530,000 40,549,572 18,908,599, % 439, ,277,715-28,277,715 21,608,874, % 430, ,210,858-30,210,858 23,301,807, % 430, ,100,000 30,100,000 25,888,213, % 430, N/A N/A N/A N/A N/A N/A N/A 2009 N/A N/A N/A N/A N/A N/A N/A 2008 N/A N/A N/A N/A N/A N/A N/A 2007 N/A N/A N/A N/A N/A N/A N/A 2006 N/A N/A N/A N/A N/A N/A N/A N/A - Prior to fiscal year 2011, the last year the College had debt associated with our tax levy was Note: Details of the College's outstanding debt can be found in the notes to financial statements. Data Sources Oakton Community College record, Comprehensive Annual Financial Reports and Cook County records. 87 Page

96 DES PLAINES, ILLINOIS Table 11 DEMOGRAPHIC AND ECONOMIC INFORMATION Last Ten Fiscal Years Per Capita Fiscal Population Personal Personal Unemployment Year (Estimate) (1) Income (1)(2) Income (2) Rate (2)(3) ,721 (4) $ 19,490,671,772 (4) $ 44,732 (4) 5.40% ,939 (5) 20,114,890,958 (4) 45,722 (4) 6.80% ,768 (1)(a) 25,435,986,304 53, % ,593 22,969,583,490 53, % ,593 22,969,552,992 53, % ,593 16,743,414,662 38, % ,907 16,765,347,043 39, % ,907 16,765,347,043 39, % ,907 16,765,347,043 39, % ,907 16,765,347,043 39, % Data Sources (1) Based on 2010 U.S. Census data (a) Population and Housing Occupancy Status: State - School District 2010 Census Redistricting Data (Public Law ) Summary File (2) U.S. Census Bureau, annual American Community Surveys (3) Illinois Department of Employment Security Average of the 19 communities in the district (4) Computed using estimates from U.S. Census Bureau's American FactFinder and application of percentages from Overlapping Bonded Debt Statements (5) 2014 Official Statement of the College 88 Page

97 DES PLAINES, ILLINOIS Table 12 DEMOGRAPHIC AND ECONOMIC INFORMATION PRINCIPAL EMPLOYERS Current Year and Nine Years Ago % of % of Estimated Total District Estimated Total District Employer Rank Employees Population Employer Rank Employees Population Allstate Insurance Co., Northbrook, IL 1 8, % Northwestern University, Evanston, IL 1 5, % Northwestern University, Evanston, IL 2 5, % Allstate Insurance, Northbrook, IL 2 5, % Kraft Foods Technology Center, Glenview, IL 2,100 North Shore Healthcare, Evanston, Skokie, Glenview, IL 3 5, % Kraft Foods Hdqtrs & Sales, Northfield, IL 3 1, % Advocate Lutheran General Hospital, Park Ridge, IL 4 4, % Evanston Northwestern Healthcare, Evanston, IL 4 3, % Kraft Heinz Company, Northfield & Glenview, IL 5 3, % Anixter International, Inc. 5 2, % Astellas US LLC, Northbrook, IL 6 3, % Acme Alliance, LLC, Northbrook, IL 6 2, % Walgreen Co., Northbrook, Deerfield, IL 7 2, % St. Francis Hospital, Evanston, IL 7 1, % Baxter Healthcare Corp, Northbrook, Deerfield, IL 8 2, % Federal Mogul, Skokie, IL 8 1, % CVS/Caremark International, Northbrook, Mt. Prospect, IL 9 2, % Underwriters Laboratories Inc., Northbrook, IL 9 1, % Federal Mogul Corp., Skokie, IL 10 1, % Avon Products, Morton Grove, IL 10 1, % TOTAL 39, % TOTAL 27, % Data Sources 2015 Illinois Manufacturers' Directory 2015 Illinois Services Directories Company/Organization Website US Census Bureau 89 Page

98 DES PLAINES, ILLINOIS Table 13 OPERATING INFORMATION FULL-TIME EQUIVALENT EMPLOYEES AND EMPLOYEE HEADCOUNT BY EMPLOYEE GROUP Last Ten Fiscal Years Function/Program Instruction Administrators Full-time faculty Adjunct faculty Staff Academic support Administrators Full-time faculty Staff Student services Administrators Full-time faculty Staff Public services Administrators Full-time faculty Staff Operations/maintenance of plant Administrators Staff General administration Administrators Staff Institutional support Administrators Full-time faculty Staff Auxiliary enterprises Administrators Adjunct faculty Staff Financial aid Administrators Staff TOTAL Data Sources Oakton Community College Human Resources Office, "Comparison of Instructional Faculty and Administrators," "Comparison of FTE Assignments" and "Comparison of Classified Staff Positions." 90 Page

99 DES PLAINES, ILLINOIS Table 14 OPERATING INFORMATION CAPITAL ASSET STATISTICS Last Ten Fiscal Years Function/Program 2015 (B) (C) (A) Size of campus (acres) Square footage available 707, , , , , , , , , ,225 Number of classrooms Number of laboratories Notes: (A) In 2006, 35,500 sq. ft. of available space at the Ray Hartstein campus was demolished. (B) In 2015, the Margaret Burke Lee Science and Health Careers Center was opened on the Des Plaines campus. (C) During fiscal year 2013, the College remodeled a series of classrooms some of which were combined and converted to laboratory classrooms. Data Source College records 91 Page

100

101 SUPPLEMENTAL FINANCIAL INFORMATION SECTION JUNE 30, 2015 MANAGEMENT INFORMATION STATEMENTS The following supplemental financial information is maintained for management information purposes. Schedule Combining Schedule of Net Position - by Subfund... 1 Combining Schedule of Revenues, Expenses and Changes in Net Position, by Subfund 2 Schedule of Expenses by Function and Object. 3 UNIFORM FINANCIAL STATEMENTS The Uniform Financial Statements are required by the Illinois Community College Board (ICCB) for the purpose of providing consistent audited data for every community college district. Regardless of the basis of accounting used for a College s Statement of Net Position, Statement of Revenues, Expenses and Changes in Net Position, the Uniform Financial Statements are completed using the accrual basis of accounting and a total financial resource measurement focus prescribed by ICCB. The Uniform Financial Statements include the following: Schedule All Funds Summary - Uniform Financial Statement No. 1 4 Summary of Capital Assets and Debt - Uniform Financial Statement No. 2 5 Operating Funds Revenues and Expenditures - Uniform Financial Statement No. 3 6 Restricted Purposes Fund Revenues and Expenditures - Uniform Financial Statement No Current Funds Expenditures by Activity - Uniform Financial Statement No Page

102 CERTIFICATE OF CHARGEBACK REIMBURSEMENT Schedule Certificate of Chargeback Reimbursement Page

103 DES PLAINES, ILLINOIS Schedule 1 COMBINING SCHEDULE OF NET POSITION, BY SUBFUND June 30, 2015 Operations Liability Operations and Bond and Social Trust and Maintenance and Restricted Working Protection Security/ and Long-Term Capital Education Maintenance Restricted Interest Auxiliaries Purposes Cash Audit Settlement Medicare Agency Obligations Assets Total CURRENT ASSETS Cash and cash equivalents $ 2,041,899 $ 533,719 $ 760,076 $ 1,827,445 $ 2,640,411 $ 618,540 $ - $ 62,604 $ 509,951 $ 246,389 $ 252,846 $ - $ - $ 9,493,880 Short-term investments 55,933,672 9,944,236 5,169,233-8,537, ,259 14,500,000 73, ,890 15, , ,081,294 Property tax receivable, net 17,970,880 4,136,535-1,748, , ,908,000 Student tuition receivable, net 6,317,766 4, , , ,506,841 Other accounts receivable 1,168,334 9,866 7, , , , ,374,755 Inventory 9, , ,241 Prepaid expenses 136,095 6,285 82, ,508 8, ,662 Total current assets 83,578,482 14,635,640 6,019,608 3,575,565 13,025,997 1,505,931 14,500, ,854 1,010, , , ,978,673 NONCURRENT ASSETS Long-term investments 12,201,982 1,824, ,114-1,612,643 17,969-11,621 78,826 3,193 49, ,617,819 Student loans , ,362 Capital assets ,624, ,624,646 Less accumulated depreciation (40,280,073) (40,280,073) Total noncurrent assets 12,201,982 1,824, ,114-1,612,643 17,969-11,621 78,826 3,193 61, ,344, ,974,754 Total assets 95,780,464 16,460,631 6,836,722 3,575,565 14,638,640 1,523,900 14,500, ,475 1,089, , , ,344, ,953,427 DEFERRED OUTFLOWS OF RESOURCES SURS pension contributions ,739-44,739 Total deferred outflows of resources ,739-44,739 Total assets and deferred outflows of resources 95,780,464 16,460,631 6,836,722 3,575,565 14,638,640 1,523,900 14,500, ,475 1,089, , ,573 44, ,344, ,998, Page

104 DES PLAINES, ILLINOIS Schedule 1 COMBINING SCHEDULE OF NET POSITION, BY SUBFUND (continued) June 30, 2015 Operations Liability Operations and Bond and Social Trust and Maintenance and Restricted Working Protection Security/ and Long-Term Capital Education Maintenance Restricted Interest Auxiliaries Purposes Cash Audit Settlement Medicare Agency Obligations Assets Total CURRENT LIABILITIES Accounts payable $ 2,035,387 $ 323,096 $ 1,239,845 $ - $ 828,824 $ 62,206 $ - $ 23,000 $ 2,781 $ - $ 17,951 $ - $ - $ 4,533,090 Accrued salaries 505, ,231 4, ,318 58, ,857 4, ,121,087 Accrued compensated absences 299,806 35,148 5, ,392 (4,581) ,145 Accrued interest payable , ,380 Other accrued liabilities 253, ,019 Deposits held in custody for others , ,144 Unearned tuition and fees revenue 9,747, , , ,196,952 Current portion of bonds payable ,195,000-2,195,000 Other unearned revenue , , ,530 Total current liabilities 12,840, ,475 1,382,041-1,811, ,436-23,000 2,781 44, ,573 2,317,380-19,938,347 NONCURRENT LIABILITIES Accrued compensated absences 788, ,493 5, ,667 14, ,425,965 Other accrued liabilities 5,579, ,579,231 Long term bonds payable ,036,724-37,036,724 Total noncurrent liabilities 6,367, ,493 5, ,667 14, ,036,724-44,041,920 DEFERRED INFLOWS OF RESOURCES Unearned property tax revenue 18,543,278 3,987,130-1,668, , ,249,681 Total deferred inflows of resources 18,543,278 3,987,130-1,668, , ,249,681 Total liabilities and deferred inflows of resources 37,751,337 4,692,098 1,387,058 1,668,703 2,260, ,962-73,470 2,831 44, ,573 39,354,104-88,229,948 NET POSITION Net investment in capital assets (39,231,724) 110,344,573 71,112,849 Restricted for Capital projects - - 5,449, ,449,664 Working cash ,500, ,500,000 Debt service ,906, ,906,862 Specific purposes ,267, ,005 1,086, ,762-44,739-2,745,828 Unrestricted 58,029,127 11,768, ,377, (122,380) - 82,053,015 TOTAL NET POSITION (DEFICIT) $ 58,029,127 $ 11,768,533 $ 5,449,664 $ 1,906,862 $ 12,377,735 $ 1,267,938 $ 14,500,000 $ 127,005 $ 1,086,384 $ 219,762 $ - $ (39,309,365) $ 110,344,573 $ 177,768, Page

105 DES PLAINES, ILLINOIS Schedule 2 COMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION, BY SUBFUND For the Year Ended June 30, 2015 Operations Liability Operations and Bond Protection Social Capital and Maintenance and Restricted Working and Security/ Long-Term Asset Education Maintenance Restricted Interest Auxiliaries Purposes Cash Audit Settlement Medicare Obligations Subtotal Adjustments Eliminations Total OPERATING REVENUES Student tuition and fees, net $ 26,065,921 $ 10,067 $ 392,309 $ - $ - $ - $ - $ - $ - $ - $ - $ 26,468,297 $ - $ (9,461,425) $ 17,006,872 Chargeback revenue 60, , ,375 Auxiliary enterprises revenue ,813, ,813,052 - (4,297,818) 6,515,234 Other operating revenue 16,788 9,893 52,779 15,633, , , (15,633,468) 871, ,252 Total operating revenues 26,143,084 19, ,088 15,633,468 11,244, , (15,633,468) 38,212,976 - (13,759,243) 24,453,733 OPERATING EXPENSES Instruction 33,941,695 35, ,069,068 10,694, (18,710) 46,722,144 (211,870) - 46,510,274 Academic support 8,676, ,422 2,600, (23,342) 11,300, ,300,033 Student services 6,349, ,940 2,183, (2,687) 8,543, ,543,457 Public services 640,792-91,738-17, , , ,752 Operation and maintenance of plant 36,633 7,795,034 7,646, ,071, ,549,004 (7,032,978) - 10,516,026 General administration 4,687,894 9, , ,581, ,699, ,699,564 Institutional support 1,591,911 32,205 6,964 16,640, , ,388-95, , ,585 (16,640,000) 3,777, ,777,065 Financial aid 4,033, ,033, ,033,350 Auxiliary enterprises - - 4,056-12,849,859 2,847, ,701,719 (1,139,937) (4,297,818) 10,263,964 Scholarships, grants and waivers 106, ,354, ,461,425 - (9,461,425) - Depreciation ,926,105-3,926,105 Total operating expenses 60,065,462 7,872,475 8,169,325 16,640,750 15,124,127 32,195,465-95, , ,585 (16,684,739) 124,767,513 (4,458,680) (13,759,243) 106,549,590 OPERATING INCOME (LOSS) (33,922,378) (7,852,515) (7,724,237) (1,007,282) (3,879,381) (31,835,367) - (95,024) (452,039) (837,585) 1,051,271 (86,554,537) 4,458,680 - (82,095,857) NON-OPERATING REVENUES (EXPENSES) State grants and contracts 4,993, ,552 21,751, ,364, ,364,256 Property taxes 36,698,448 7,850,103-3,276, ,986 (7,863) (4,770) - 47,913, ,913,604 Personal property replacement tax 1,090, ,090, ,090,514 Federal grants and contracts ,357, ,357, ,357,232 Local grants and contracts , , , ,077 Investment income (107,068) (12,191) (3,223) 37 (9,021) (108) 29,000 (60) (525) - - (103,159) - - (103,159) Interest expense and fiscal charges (1,522,616) ,386 (1,247,230) - - (1,247,230) Total non-operating revenues (expenses) 42,675,046 7,837,912 (3,223) 1,754, ,480 31,803,804 29, ,926 (8,388) (4,770) 275,386 85,180, ,180,294 NONMANDATORY TRANSFERS Transfers in (out) (7,317,000) - 4,850, , ,000 (29,000) - 510, , CHANGE IN NET POSITION 1,435,668 (14,603) (2,877,460) 746,839 (2,212,901) 68,437-5,902 49,573 97,645 1,326,657 (1,374,243) 4,458,680-3,084,437 NET POSITION (DEFICIT), JULY 1 56,593,459 11,783,136 8,327,124 1,160,023 14,590,636 1,199,501 14,500, ,103 1,036, ,117 (40,636,022) 68,797, ,885, ,683,781 NET POSITION (DEFICIT), JUNE 30 $ 58,029,127 $ 11,768,533 $ 5,449,664 $ 1,906,862 $ 12,377,735 $ 1,267,938 $ 14,500,000 $ 127,005 $ 1,086,384 $ 219,762 $ (39,309,365) $ 67,423,645 $ 110,344,573 $ - $ 177,768, Page

106 DES PLAINES, ILLINOIS Schedule 3 SCHEDULE OF MANAGEMENT INFORMATION SCHEDULE OF EXPENSES BY FUNCTION AND OBJECT For the Year Ended June 30, 2015 Contractual Materials/ Salaries Benefits Services Supplies Utilities Other Total Instruction $ 25,296,472 $ 10,767,513 $ 1,969,217 $ 1,222,098 $ 3,599 $ 7,463,245 $ 46,722,144 Academic support 3,296,464 2,818, , ,041 30,105 4,250,021 11,300,033 Student services 4,622,201 2,759, , ,785 61, ,562 8,543,457 Public services 282, ,502 99, , , ,752 Operations/maintenance of plant 3,910,469 3,024, ,066 1,529,799 1,312,811 7,046,628 17,549,004 General administration 203,001 49,250 93,403 61,890 2,050 6,289,970 6,699,564 Institutional support 175,083 31,000 39,696 2,825 1,025 3,527,436 3,777,065 Auxiliary enterprises 1,564,057 3,032, ,585 2,084,993 90,060 8,598,537 15,701,719 Financial aid ,033,350 4,033,350 TOTAL $ 39,350,417 $ 22,723,123 $ 4,092,299 $ 5,892,570 $ 1,500,920 $ 41,746,759 $ 115,306,088 Note: This schedule is supplemental information and is maintained for management purposes only. 97 Page

107 COMMUNITY COLLEGE DISTRICT NUMBER 535 DES PLAINES, ILLINOIS Schedule 4 ALL FUNDS SUMMARY UNIFORM FINANCIAL STATEMENT #1 FISCAL YEAR ENDED JUNE 30, 2015 Operations Operations and Bond Liability, Social and Maintenance and Auxiliary Restricted Working Protection, Security/ Total Education Maintenance Fund Interest Enterprises Purposes Cash Audit Settlement Medicare All Fund Fund (Restricted) Fund Funds Fund Fund Fund Fund Fund Funds FUND BALANCES, JULY 1, 2014 $ 56,593,459 $ 11,783,136 $ 8,327,124 $ 1,160,023 $ 14,590,636 $ 1,199,501 $ 14,500,000 $ 121,103 $ 1,036,811 $ 122,117 $ 109,433,910 REVENUES Local tax revenue 37,788,962 7,850,103-3,276, ,986 (7,863) (4,770) 49,004,118 All other local revenue 60, , , ,452 ICCB grants 4,621, , , ,058,511 All other state revenue 371, ,162, ,534,416 Federal revenue ,357, ,357,232 Student tuition and fees 22,032,571 10, , ,434,947 All other revenue (90,280) (2,298) 49,556 15,633,505 11,235, ,990 29,000 (60) (525) - 27,214,613 Total revenues 64,784,780 7,857, ,865 18,910,205 11,965,226 12,392,573 29, ,926 (8,388) (4,770) 116,469,289 EXPENDITURES Instruction 33,941,695 35, ,069,068 2,390, ,436,995 Academic support 8,676, , , ,950,414 Student services 6,349, , , ,568,509 Public services 640,792-91,738-17,639 31, ,090 Auxiliary services - - 4,056-12,849,859 79, ,933,432 Operations and maintenance 36,633 7,795,034 7,646, , ,572,373 General administration 4,687,894 9, , ,118,259 Institutional support 1,591,911 32,205 6,964 18,163, ,199 38,399-95, , ,585 21,346,692 Scholarships, grants and waivers 106, ,354, ,461,425 Total expenditures 56,032,112 7,872,475 8,169,325 18,163,366 15,124,127 12,424,136-95, , , ,170,189 NET TRANSFERS (7,317,000) - 4,850, , ,000 (29,000) - 510, ,000 - FUND BALANCES, JUNE 30, 2015 $ 58,029,127 $ 11,768,533 $ 5,449,664 $ 1,906,862 $ 12,377,735 $ 1,267,938 $ 14,500,000 $ 127,005 $ 1,086,384 $ 219,762 $ 106,733,010 Note: Excludes SURS on behalf payments of $19.8 million. 98 Page

108 DES PLAINES, ILLINOIS Schedule 5 SUMMARY OF CAPITAL ASSETS AND DEBT UNIFORM FINANCIAL STATEMENT #2 FISCAL YEAR ENDED JUNE 30, 2015 Fixed Fixed Asset/Debt Asset/Debt Account Account Groups Groups June 30, 2014 Additions Transfers Deletions June 30, 2015 CAPITAL ASSETS Work in progress $ 52,925,307 $ 668,716 $ (45,235,650) $ - $ 8,358,373 Sites and improvements 13,330,745 2,148,558 1,093,041-16,572,344 Buildings, additions and improvements 72,681,870 5,278,448 44,142, ,102,927 Equipment 3,423, ,063 - (121,327) 3,591,002 Accumulated depreciation 36,475,295 3,926,105 - (121,327) 40,280,073 TOTAL CAPITAL ASSETS $ 105,885,893 $ 4,458,680 $ - $ - $ 110,344,573 FIXED LIABILITIES Debt certificates $ 14,530,000 $ - $ - $ (14,530,000) $ - General Obligation Refunding Bonds 23,510,000 13,970,000 - (2,110,000) 35,370,000 TOTAL FIXED LIABILITIES $ 38,040,000 $ 13,970,000 $ - $ (16,640,000) $ 35,370,000 Notes: (A) The College had no tax anticipation warrants or notes at June 30, (B) The General Obligation debt excludes a bond premium of $3,861, Page

109 DES PLAINES, ILLINOIS Schedule 6 OPERATING FUNDS REVENUES AND EXPENDITURES UNIFORM FINANCIAL STATEMENT #3 FISCAL YEAR ENDED JUNE 30, 2015 OPERATING REVENUES BY SOURCE Local government Local taxes 36,698,448 Operations and Total Education Maintenance Operating Fund Fund Funds $ $ 7,850,103 $ 44,548,551 Chargeback revenue 60,375-60,375 Corporate Personal Property replacement tax 1,090,514-1,090,514 Other Total local government 37,849,337 7,850,103 45,699,440 State government ICCB credit hour grants 4,621,675-4,621,675 ICCB equalization grants SBE - vocational education 371, ,477 SBE - adult education Other Total state government 4,993,152-4,993,152 Federal government Department of Education Other Total federal government Student tuition and fees Tuition 19,704,688-19,704,688 Fees 2,327,883 10,067 2,337,950 Other student assessments Total student tuition and fees 22,032,571 10,067 22,042,638 Other sources Sales and service fees Investment income (107,068) (12,189) (119,257) Other 16,788 9,891 26,679 Total other sources (90,280) (2,298) (92,578) Total revenues 64,784,780 7,857,872 72,642,652 Less non-operating items Tuition chargeback revenue (60,375) - (60,375) ADJUSTED REVENUE $ 64,724,405 $ 7,857,872 $ 72,582, Page

110 DES PLAINES, ILLINOIS Schedule 6 OPERATING FUNDS REVENUES AND EXPENDITURES UNIFORM FINANCIAL STATEMENT #3 (continued) FISCAL YEAR ENDED JUNE 30, 2015 OPERATING EXPENDITURES Operations and Total Education Maintenance Operating Fund Fund Funds BY PROGRAM Instruction $ 33,941,695 $ 35,372 $ 33,977,067 Academic support 8,676,977-8,676,977 Student services 6,349,350-6,349,350 Public services 640, ,792 Operations and maintenance of plant 36,633 7,795,034 7,831,667 General administration 4,687,894 9,864 4,697,758 Institutional support 1,591,911 32,205 1,624,116 Scholarships, student grants, waivers 106, ,860 Auxiliary services Transfers (7,317,000) - (7,317,000) Total expenditures 48,715,112 7,872,475 56,587,587 Less non-operating items Tuition chargeback (60,375) - (60,375) Transfers to non-operating funds 7,317,000-7,317,000 ADJUSTED EXPENDITURES $ 55,971,737 $ 7,872,475 $ 63,844,212 BY OBJECT Salaries $ 41,700,727 $ 3,910,469 $ 45,611,196 Employee benefits 5,098,853 1,034,100 6,132,953 Contractual services 4,638, ,428 5,288,865 General materials and supplies 3,419, ,732 4,066,573 Conferences and meetings 276,914 6, ,172 Fixed charges 262,807 (17,307) 245,500 Utilities 338,590 1,286,551 1,625,141 Capital outlay 135, , ,717 Other 160,753 28, ,470 Transfers (7,317,000) - (7,317,000) Total expenditures 48,715,112 7,872,475 56,587,587 Less non-operating items Tuition chargeback (60,375) - (60,375) Transfers to non-operating funds 7,317,000-7,317,000 ADJUSTED EXPENDITURES $ 55,971,737 $ 7,872,475 $ 63,844,212 **Non Add Line Inter-college revenues that do not generate related local college credit hours are subtracted to allow for statewide comparisons. 101 Page

111 DES PLAINES, ILLINOIS Schedule 7 RESTRICTED PURPOSES FUND REVENUES AND EXPENDITURES UNIFORM FINANCIAL STATEMENT #4 FISCAL YEAR ENDED JUNE 30, 2015 REVENUES BY SOURCE State government ICCB - Workforce Development Grants $ - ICCB - Career and Technical Education 28,208 ICCB - Student Success Grant - ICCB - Adult Education 789,076 Illinois Student Assistance Commission 906,846 Other 256,093 Total state government 1,980,223 Federal government Department of Education 9,116,284 Department of Veterans Affairs 190,603 Other 50,345 Total federal government 9,357,232 Other sources Student tuition and fees - All other local 695,128 Other 359,990 Total other sources 1,055,118 TOTAL RESTRICTED PURPOSES FUND REVENUES $ 12,392, Page

112 DES PLAINES, ILLINOIS Schedule 7 RESTRICTED PURPOSES FUND REVENUES AND EXPENDITURES UNIFORM FINANCIAL STATEMENT #4 (continued) FISCAL YEAR ENDED JUNE 30, 2015 EXPENDITURES BY PROGRAM Instruction $ 2,390,860 Academic support 228,015 Student services 206,219 Public services 31,921 Operations and maintenance of plant 94,640 General administration - Auxiliary services 79,517 Institutional support 38,399 Scholarships, grants, waivers 9,354,565 TOTAL RESTRICTED PURPOSES FUND EXPENDITURES $ 12,424,136 EXPENDITURES BY OBJECT Salaries $ 1,760,980 Employee benefits 110,408 Contractual services 122,293 Student financial aid 9,257,080 General materials and supplies 476,802 Conference and meetings 35,865 Fixed charges 580,429 Utilities 3,599 Capital outlay 76,680 TOTAL RESTRICTED PURPOSES FUND EXPENDITURES $ 12,424, Page

113 DES PLAINES, ILLINOIS Schedule 8 CURRENT FUNDS - EXPENDITURES BY ACTIVITY UNIFORM FINANCIAL STATEMENT #5 FISCAL YEAR ENDED JUNE 30, 2015 INSTRUCTION Instructional programs $ 36,217,952 Other 2,219,043 Total instruction 38,436,995 ACADEMIC SUPPORT Library Center 2,414,045 Instructional Materials Center 944,972 Educational Media Services - Academic computing support - Academic administration and planning 3,556,156 Other 2,035,241 Total academic support 8,950,414 STUDENT SERVICES Admissions and records 2,319,552 Counseling and career services 2,484,231 Financial aid administration 676,147 Other 1,088,579 Total student services 6,568,509 PUBLIC SERVICE/CONTINUING EDUCATION Community education 17,639 Customized training - Community services 552,331 Other 120,382 Total public service/continuing education 690,352 AUXILIARY SERVICES 12,929, Page

114 DES PLAINES, ILLINOIS Schedule 8 CURRENT FUNDS - EXPENDITURES BY ACTIVITY UNIFORM FINANCIAL STATEMENT #5 (continued) FISCAL YEAR ENDED JUNE 30, 2015 OPERATIONS AND MAINTENANCE OF PLANT Maintenance $ 1,819,429 Custodial services 2,453,957 Grounds maintenance 549,135 Campus security 1,183,282 Transportation 37,755 Plant utilities 1,242,208 Administration 262,437 Other 378,104 Total operations and maintenance of plant 7,926,307 GENERAL ADMINISTRATION AND INSTITUTIONAL SUPPORT Executive management 502,438 Fiscal operations 2,114,082 Community relations 1,551,496 Administrative support services 1,020,058 Board of trustees 312,737 General institution 1,945,607 Institutional research - Other 427,702 Total general administration and institutional support 7,874,120 SCHOLARSHIPS, STUDENT GRANTS AND WAIVERS 9,461,425 TOTAL CURRENT FUNDS EXPENDITURES $ 92,837, Page

115 Schedule 9 Oakton Community College Community College District No. 535 Certificate of Chargeback Reimbursement For the Year Ended June 30, 2015 All Non Capital Audited Operating Expenditures for Fiscal Year 2015 from All Revenue Sources: Education Fund $ 55,896,922 Operations and Maintenance Fund 7,545,948 Public Building Commission O &M Fund - Bond and Interest Fund - Public Building Commission Rental Fund - Restricted Purposes Fund 12,347,456 Audit Fund 95,024 Liability, Protection and Settlement Fund 1,289,624 Auxiliary Enterprises Fund (subsidy only) 946,000 Total Non Capital Audited Operating Expenditures 78,120,974 Plus: Depreciation on Capital Outlay Expenditures Paid from Sources other than State and Federal Funds 3,711,052 Total Costs Included 81,832,026 Total Certified Semester Credit Hours 197,026 Per Capita Cost $ All Fiscal Year 2015 State and Federal Operating Grants for Non Capital Expenditures, except ICCB Grants 9,555,440 FY2015 State and Federal Grants per Semester Credit Hour District's Average ICCB Grant Rate for FY2016 NA District's Student Tuition and Fee Rate per Semester Credit Hour for FY Chargeback Reimbursement per Semester Credit Hour $ NA Approved: /s/ Robert Nowak October 12, 2015 Chief Fiscal Officer Date Approved: /s/ Joianne L. Smith October 12, 2015 President Date 106 Page

116 ILLINOIS COMMUNITY COLLEGE BOARD GRANTS June 30, 2015 FINANCIAL COMPLIANCE SECTION Program Improvement Grant State Adult Education and Family Literacy Grants 107 Page

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