ANNUAL FINANCIAL REPORT CONSOLIDATED SCHOOL DISTRICT NO. 158

ANNUAL FINANCIAL REPORT

CONSOLIDATED SCHOOL

DISTRICT NO. 158

ALGONQUIN, IL

JUNE 30, 2014

CONSOLIDATED SCHOOL DISTRICT 158

TABLE OF CONTENTS

JUNE 30, 2014

Exhibit Page

1 Independent Auditors’ Report

Required Supplementary Information:

Management’s Discussion and Analysis – unaudited

Basic Financial Statements:

Government-wide Financial Statements

Statement of Net Position

Statement of Activities

Fund Financial Statements

Balance Sheet – Governmental Funds

Statement of Revenue, Expenditures

and Changes in Fund Balance – Governmental Funds

Statement of Fiduciary Assets and Liabilities

A

B

C

D

E

4

21

22

24

27

32

Notes to the Basic Financial Statements

Required Supplementary Information:

Illinois Municipal Retirement Fund

33

53

Schedule

General and Major Special Revenue Funds – Schedule of Revenues,

Expenditures and Changes in Fund Balance – Budget and Actual

General Fund – Combining Balance Sheet

Schedule of Revenues, Expenditures and Changes in Fund

Balance – General Fund


Balance – Budget and Actual – Operations and Maintenance Fund


Balance – Budget and Actual – Transportation Fund

Schedule of Revenue, Expenditures and Changes in Fund

Balance – Budget and Actual – Municipal Retirement/Social Security Fund

Notes to Required Supplementary Information

1

2

3

4

5

54

55

56

58

60

62

CONSOLIDATED SCHOOL DISTRICT 158

TABLE OF CONTENTS

JUNE 30, 2014

Schedule Page

Supplementary Information:

General Fund Accounts – Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual


Balance – Budget and Actual – Educational Account


Balance – Budget and Actual – Working Cash Account

Major Debt Service and Major Capital Projects Funds – Schedule of Revenues,

Expenditures and Changes in Fund Balance – Budget and Actual


Balance – Budget and Actual –Debt Service Fund


Balance – Budget and Actual – Capital Projects Fund


Balance – Budget and Actual – Fire Prevention and Safety Fund

Schedule of Changes in Assets and Liabilities – Agency Fund

Debt Service Schedule – 2005 General Obligation Refunding Bonds

Debt Service Schedule – 2006B General Obligation Refunding Bonds

Debt Service Schedule – 2000 Capital Appreciation School Building Bonds



Debt Service Schedule – 2003A Capital Appreciation School Building Bonds


Debt Service Schedule – 2008 Refunding Bonds

Debt Service Schedule – 2009 Refunding Bonds


Debt Service Schedule – 2011A Qualified Energy Conservation Debt Certificates

Debt Service Schedule – 2011B Refunding Debt Certificates

Operating and Non-Operating Governmental Funds


Statement of Revenues, Expenditures, and Changes in Fund Balances –

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

63

72

73

74

75

76

81

82

83

84

85

86

87

88

89

90

91

92

93

94

I ndependent Auditors’ Report

Board of Education

Consolidated School District No. 158

Algonquin, Illinois

We have audited the accompanying financial statements of the governmental activities, and each major fund of

Consolidated School District No. 158, Algonquin, Illinois (the “District”) as of and for the year ended June 30,

2014 , and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller

General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Basis for Qualified Opinion

The District has elected to omit the disclosures required by Governmental Accounting Standards Board

Statement 45 Accounting and Financial Reporting for Post-Employment Benefits Other Than Pensions.

The amount by which this disclosure would affect the financial statements is not reasonably determinable.

1

Qualified Opinion

In our opinion, except for the effect of the omission discussed in the “Reporting for Post-Employment Benefits

Other Than Pensions” the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of the District as of June 30,

2014, and the respective changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters

Prior-Year Comparative Information

We have previously audited the District’s 2013 financial statements, and we expressed qualified audit opinions on the respective financial statements of the governmental activities, each major fund, and the aggregate remaining fund information in our report dated October 10, 2013. In our opinion, the summarized comparative information presented herein as of and for the year ended June 30, 2013, is consistent, in all material respects, with the audited financial statements from which it has been derived.

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison information and Illinois municipal retirement fund schedule of funding progress, as 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.

Supplementary Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the District’s basic financial statements. The supplementary information is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplementary information is the responsibility of management and was derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America.

In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

We have previously audited, in accordance with auditing standards generally accepted in the United States of

America, the basic financial statements of the District as of and for the year ended June 30, 2013 (not presented herein), and have issued our report October 10, 2013, which contained qualified opinions on the respective financial statements of the governmental activities, each major fund, and the aggregate remaining fund information. The supplementary information as listed in the table of contents for the year ended June 30, 2013 is presented for purposes of additional analysis and is not a required part of the basic financial statements.

Such information is the responsibility of management and was derived from and relates directly to the underlying

2

accounting and other records used to prepare the 2013 financial statements. The information has been subjected to the auditing procedures applied in the audit of the 2013 basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare those financial statements or to those financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the

United States of America. In our opinion, the supplementary information as listed in the table of contents is fairly stated in all material respects in relation to the basic financial statements as a whole for the year ended June 30,

2013.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards , we have also issued our report dated October 13, 2014, on our consideration of the District’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance.

That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District’s internal control over financial reporting and compliance.

Evans, Marshall & Pease, P.C.

Evans, Marshall & Pease, P.C.

Certified Public Accountants

October 13, 2014

Rolling Meadows, IL

(25)

3

CONSOLIDATED SCHOOL DISTRICT 158 MANAGEMENT DISCUSSION AND ANALYSIS FOR

THE FISCAL YEAR ENDED JUNE 30, 2014

Overview of the Financial Statements

The Annual Financial Report consists of four major parts:

 Management’s Discussion and Analysis (MD&A) which is intended to serve as an introduction to the remaining three parts of the report.

 Basic Financial Statements which include statements that present different financial perspectives of the District: o The first two statements are government-wide financial statements, which include the

Statement of Net Position and the Statement of Activities. These statements provide both short-term and longterm information about the District’s overall financial status. o The next several statements are fund financial statements that focus on individual parts of the District, reporting the District’s balance sheet position and operations in more detail than the government-wide statements. o The final statement is a fiduciary funds statement that provides information about financial relationships in which the District acts solely as a trustee or agent for the benefit of others.

 Notes to the Basic Financial Statements

 Required Supplementary Information

Management Discussion and Analysis

The Management Discussion and Analysis, a requirement of GASB 34, is the Consolidated School

District 158 administration’s discussion and analysis of the financial results as well as an overall review of the District’s financial activities for the fiscal year ended June 30, 2014. The management of the District encourages readers to consider the information presented herein in conjunction with the

District’s financial statements, which immediately follow this section.

Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the District. The enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of the various funds of the District. All disclosures necessary to enable the reader to gain an understanding of the District’s financial activities have been included.

Generally accepted accounting principles (GAAP) according to GASB 34 require the reporting of two types of financial statements: Government Wide Financial Statements and Fund Financial Statements.

Government Wide Financial Statements

The government wide financial statements are full accrual basis statements. They report all of the

District’s assets and liabilities, both short and long term, regardless if they are “currently available” or not. Capital assets and obligations of the District are reported in the Statement of Net Position of the government wide financial statements.

One of the most imp ortant questions asked about the District is, “As a whole, what is the School

District’s financial condition as a result of the year’s activities?” The Statement of Net Position and the

Statement of Activities, which appear first in the District’s financial statements, report information on the District as a whole and its activities in a way that helps you answer this question. We prepare these statements to include all assets and liabilities, using the accrual basis of accounting, which is similar to the accounting used by most privatesector companies. All of the current year’s revenues and expenses are taken into account regardless of when cash is received or paid.

4



The Statement of Net Position and the Statement of Activities report the Consolidated School District

158’s net assets – the difference between assets and liabilities, as reported in the Statement of Net

Position – as one way to measure the District’s financial health or financial position. Over time, increases or decreases in the District’s net position – as reported in the Statement of Activities – are indicators of whether its financial health is improving or deteriorating. The relationship between revenues and expenses is the District’s operating results. However, the School District’s goal is to provide services to our students, not to generate profits as commercial entities do. One must consider many other nonfinancial factors, such as the quality of the education provided and the safety of the schools, to assess the overall health of the District.

These two statements report the governmental activities for the District, which encompasses all of the

District’s services, including instruction and support services. Property taxes, unrestricted state aid, and state and federal grants finance most of these activities.

Fund Financial Statements

A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The District, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

All of the funds of the District can be divided into two categories: governmental funds and fiduciary funds.

Governmental funds – All of the School District’s services are reported in governmental funds.

Governmental fund reporting focuses on showing how money flows into and out of funds and the balances left at year end are available for spending. They are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the operations of the School District and the services it provides. Governmental fund information helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance the District’s programs.

The District maintains individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balances for the General (Educational and Working Cash), Operations and

Maintenance, Transportation, Municipal Retirement/Social Security, Debt Service, Capital Projects and

Fire Prevention & Life Safety Funds, all of which the District considers to be major funds. Each fund can be placed into one of four major categories: General, Special Revenue, Capital Projects and Debt

Service.

5



The following figure lists the individual governmental funds by major category:

Educational Fund General Fund

Working Cash Fund

Operations and

Maintenance Fund

Transportation Fund

Municipal

Retirement/Social

Security Fund

Fire Prevention & Life

Safety Fund

Capital Projects Fund

Special Revenue Funds

Capital Projects Funds

Debt Service Fund Debt Service Fund

The District adopts an annual budget for each of the funds listed above. A budgetary comparison statement has been provided for each fund to demonstrate compliance with this budget.

In the fund financial statements, purchased capital assets are reported as expenditures in the year of acquisition. No asset is reported. The issuance of debt is recorded as an Other Financing Source, whereas t he current year’s payments of principal and interest on long term obligations are recorded as expenditures. Future year’s debt obligations are not recorded.

Fiduciary funds – The District is the trustee, or fiduciary, for assets that belong to others, such as the student activities funds. The District is responsible for ensuring that the assets reported in these funds are used only for their intended purposes and for those to whom the assets belong. The District excludes these activities from the government-wide financial statements because it cannot use these assets to finance its operation.

6



Fiscal Year 2014 District Highlights

Over the past several years, the Administration and the Board of Education have acted judiciously to reduce costs and budget conservatively. As a result, the District has performed well financially and achieved a high level of financial and curricular success. School year 2013-2014 was a year of great accomplishment for Consolidated School District 158, driving the strategic direction of the district forward, while remaining within budget.

Curriculum

Within an industry that has historically been slow to respond to changing needs, District 158 is expanding the horizons of education in important and innovative ways. The District has embraced the concept of 21 st

Century learning to prepare students for success in a rapidly changing economic and social world. The District has implemented innovative tools that are quickly evolving and that change the way teachers teach and the way that students learn. In fiscal year 2013, the District implemented its One-to-One Initiative, whereby all of Martin Elementary, approximately 1,200 students, received a learning device (tablet). The District continues to expand these programs. In fiscal year 2014, devices were distributed to an additional 2,400 students at Leggee, Conley and Martin Elementary schools. In fiscal year 2015, approximately 65% of the D istrict’s students (all students in Kindergarten through 7 th grade), will have a learning device in hand. These learning devices enable students to connect with each other and with their teachers to enhance instruction in ways that are creative and authentic, with increased collaboration and engagement. These skills that students hone through using new technology will serve them well as they progress through District 158 and on to college and careers.

At Huntley High School, in fiscal year 2012, the District launched its Blended Learning Program, in which students can opt to enroll in classes that meet both in-person and in an online environment.

This program continues to grow in size year over year. Today approximately 916 students are enrolled in a blended learning class, comprising about one-third of the students at the High School.

The Blended Learning Program has fostered increased student engagement, independence and decision-making regarding their learning experience. As a result, academic achievement continues to increase, as evidenced by the District’s highest-ever composite ACT score. Huntley High School is also on the forefront within the State of Illinois in offering rigorous coursework in engineering and biomedical sciences through Project Lead the Way and the High S chool’s Medical Academy. These programs offer students unique opportunities to gain specialized skills and interact with relevant subjects in innovative ways.

In District 158, the focus for teaching and learning has been innovative programming to prepare students for future success. The programming related to student technology, blended learning, and

Project Lead the Way sets the District apart from its peers and creates a foundation for student growth and opportunity.

Finances

Remarkably, the District has implemented these innovative programs while maintaining the highest degree of fiscal responsibility. Over the last five years, the District increased its operating fund balance 93% from $16.3 million in fiscal year 2009 to an estimated $31.6 million at the end of fiscal year 2014 - resulting in significantly improved cash flow. Prior to levy year 2013, the improved financial position enabled the District to keep property taxes, before new construction, the same for three years. During fiscal year 2014, the 2013 levy reflected a CPI increase of 1.7% in accordance with the Property Tax Limitation Law. However, in an effort to reduce the impact to the community, the

District abated $400,000 of debt, reducing the overall property taxes levied to the community. Please see Property Tax Levy Abatements below. The District is committed to providing the best value to the community while continuing to maintain a low operating cost per pupil. Currently, the District’s approximate operating cost per pupil is $8,844 versus the fiscal year 2013 State average of $12,040.

Please see Financial Highlights below.

7



Operations & Maintenance

The District has had the funding to complete major projects including asphalt repair and/or replacement, carpet replacement, playground safety surface replacements, lighting retrofit on the

Square Barn Campus, network video system enhancements and the refinishing of gym floor at the

High School. In addition, the Technology Department outfitted the remainder of the District’s buildings with wireless technology, rolled out Windows 7 S oftware, provided new laptops and PC’s to teachers throughout the District and continued to upgrade and virtualize our technology infrastructure systems.

Thus, despite the District’s low revenue per student and the State’s current economic climate, our

District continues to deliver relevant and dynamic educational experiences for all of our students while continuing to operate efficiently and to meet the operating needs of the District. And the good news is, the fiscal year 2015 budget continues to drive this momentum forward.

Financial Highlights

Operating Results

The last several years of economic downturn, coupled with the State’s lack of increased funding as well as funding uncertainty, have challenged the District financially. Over this period of time, the

District has met that challenge head on, maintaining quality of education with minimum impact to the classroom. Over the last several years, the District has budgeted conservatively, and in doing so has improved its financial position. As a result, the District ’s operating cost per pupil continues to be well below the State average. The District’s operating cost per pupil, approximating $8,844 per student in fiscal year 2014, continues to be the lowest in McHenry and Kane County for all K-12 districts and significantly below the State’s 2013 average operating cost per pupil of $12,040 per student. See chart below.

For the fiscal year ended June 30, 2014, the District finished the year with an operating surplus of approximately $2.5 million. The surplus was primarily driven by favorability in salaries and benefits in fiscal year 2014 as well as approximately $900 thousand of unexpected tax levy dollars received before the revenue recognition cutoff of July 30 th

.

8



The District's operating funds, which include the Educational Fund, Operations and Maintenance

Fund, Transportation Fund, Municipal Retirement/Social Security Fund, and Working Cash Fund, increased fund balance by $2.5 million, resulting in an ending operating fund balance of $31.6 million.

Strategic Initiatives

The District’s mission statement is, “We will Inspire, Challenge , and Empower everyone every day.” In fiscal year 2014, aligned with the District’s strategic plan goals, the District met 89.69% of the District’s strategic plan measures. There are five strategic goals and 41 measures. The five strategic goals are as follows:

Goal One: Continuously improve student growth and achievement.

Goal Two: Provide safe, healthy and nurturing environments conducive to learning and wellness.

Goal Three: Attract, support, develop and retain the best and brightest staff.

Goal Four: Foster ownership through trusting and engaged partnerships with families and the community.

Goal Five: Prioritize and allocate resources effectively and equitably while operating with increased efficiency.

In fiscal year 2014, the District continued to its focus on putting technology in the hands of the students and providing 21 st

century learning tools. Through its transformative One-to-One Initiative, the District purchased and deployed 2,400 Android tablets to all K-5 th

grade students at Leggee,

Conley and Martin elementary schools. An additional 400 Android tablets were distributed to 6 th

grade students at Marlowe Middle School. At the end of fiscal year 2014, approximately 4,000 students had a device in hand.

Subsequent to year end, in August, the State of Illinois released the state and local ACT average scores for the graduatin g class of 2014. Huntley High School’s average composite score of 23.0 is the highest score ever achieved by the District. The score represents an improvement of 0.6 points, a substantial increase when viewing average composite trends at both the district and state levels.

Planning for the Future

During the year, in an effort to set aside funds for future capital projects, the District approved a resolution restricting $2 million for “reserve for replacement.” The resolution states “That the sum of

Two Million Dollars ($2,000,000.00) currently on deposit within the Educational Fund, and not designated or committed for any other purpose(s), is hereby designated and committed for future capital improvements of the District.” Furthermore, during fiscal year 2014, the District budgeted an additional $300 thousand to be set aside and designated for the same purpose. As such, an additional resolution will be approved in fiscal year 2015 to designate these funds.

As a result of the District’s substantially graduated debt service requirements, the District restructured its debt, issuing $47.76 million dollars in General Obligation Refunding Bonds with interest rates ranging from 5.0% to 5.625%. The proceeds were used to advance refund $37.41 million of outstanding Series 2000, 2001, 2003 and 2003A Capital Appreciation Bonds. The debt restructuring restructured debt through Fiscal Year 2020. The District’s remaining escalated debt, due in Fiscal

Years 2021 through 2025, will be refunded in a multi-phase approach to maximize savings to the

District. See Long-Term Debt below.

Property Tax Levy Abatements

Prior to levy year 2013, the improved financial position enabled the District to keep property taxes, before new construction, the same for three years. By taking this action, the District did not receive an increase in tax dollars from the community for these related levy years, other than from new construction.

9



During fiscal year 2014, the 2013 levy reflected a Consumer Price Index increase of 1.7% in accordance with the Property Tax Limitation Law. However, in an effort to reduce the impact to the community, the District abated $400,000 of debt, reducing the overall property taxes levied to the community.

Using proceeds from the Series 2010 refunding, the Capital Development Grant as well as the

General Fund, the District has abated $994 thousand, $2.35 million, $4.57 million and $400 thousand in fiscal years 2011, 2012, 2013 and 2014 respectively.

Long-Term Debt

In fiscal year 2014, excluding capital leases and unamortized premiums/discounts, the District retired and or defeased $62.52 million of debt. (See Note 6 to the Financial Statements.)

During the year, in an effort to manage our increasing debt over the next several years, the District closed on a $46.76 million General Obligation Refunding, Series 2013 Bonds on September 30, 2013.

The General Obligation Refunding School Bonds, Series 2013, were used to refund some of the

District’s outstanding General Obligation and Capital Appreciation School Building Bonds, and extends the District’s long term debt. The Series 2013 Bonds follow:

The Maturities, Amounts, Interest Rates, Yields and CUSIP Numbers Follow:

(J

M ATURITY

ANUARY 15) A MOUNT

I NTEREST

R ATE Y IELD

CUSIP

N UMBER

(580773)

2029 $ 4,000,000 5.250% 4.680% JT7

2030 9,660,000 5.375% 4.770% JU4

2031 10,650,000 5.625% 4.790% JV2

2032 10,950,000 5.625% 4.870% JW0

2033 11,500,000 5.000% 5.160% JX8

As part of the Series 2013 Bond refunding, the District went through a Standard & Poor’s (S&P) rating whereby the District received a strong rating of AA-. The S&P AA- rating reflects that an organization demonstrates high standards of quality based on its investment process and management's consistency of performance as compared to organizations with similar objectives. The AA- rating reduced interest rates and increased savings to the District in interest expense and bond insurance fees. (See Note 6 to the Financial Statements.)

The District’s legal debt margin, which is the capacity to borrow additional funds, is $53.4 million, down from prior years $90.0 million. The decrease is primarily due to the increase in applicable debt as part of the legal debt margin formula. The Series 2013 refunding consisted of $47.76 million of general obligation debt, replacing capital appreciation bonds for which only the original principal was included as applicable debt. In addition, the District’s Equalized Assessed Valuation decreased during the year arriving at a lower Statuary Debt Limit in fiscal year 2014. (See Note 6 to the Financial Statements.)

Financial Rating

A district's Financial Profile, as measured by the Illinois State Board of Education, is based upon a weighted combination of five ratios: o Fund Balance to Revenue Ratio o Expenditure to Revenue Ratio o Days Cash on Hand o Percent of Short-Term Borrowing Maximum Remaining o Percent of Long-Term Debt Margin Remaining

10



While an estimated profile is identified here, it is an estimation and may change, as the final profile score will be calculated by ISBE. Total profile scores are identified as follows:

Score

3.54 - 4.00

3.08 - 3.53

Rating

Financial Recognition

Financial Review

Description

The highest category of financial strength.

The next highest financial health category.

2.62 - 3.07

Financial Early Warning ISBE will be monitoring these districts closely and offering proactive technical assistance.

1.00 - 2.61

Financial Watch ISBE will be monitoring these districts very closely and offering them technical assistance including, but not limited to, financial projections, cash flow analysis, budgeting, personnel inventories, and enrollment projections.

In fiscal year 2014, for the second consecutive year, the District’s Financial Profile Rating is that of

“Financial Recognition” at 3.60. “Recognition” is the highest rating of financial strength. Below is a

Profile Score History outlining the positive trend the District has made over the past several years.

Huntley High School Upgrades and Expansion

In 2013, the District formed the HHS 3000 Committee. This committee was formed to identify needs for the high school in order to accommodate the expected 3,000 students that will be at Huntley High

School in school year 2016-2017.

In the capital projects fund this past year, utilizing funds received from the State of Illinois Capital

Projects Fund Grant, the District completed the construction associated with Huntley High School athletic field upgrades. As of June 30, 2014, the District expensed approximately $3.3 million for the athletic field upgrades. The completed project included additional stadium bleachers to support the high school’s increased enrollment, a synthetic turf football field, a new press box, replacement of the track surface and irrigation of several of the athletic fields. The upgrades will allow for safer play and practice fields, increased playability on the school’s football field and lower ongoing maintenance costs.

11



In addition to the athletic field upgrades, as part of the HHS 3000 Committee’s expansion project, during the year the District expended $2.9 million for professional and technical work as well as expansion construction. The overall expansion project includes additional classrooms, relocation and expansion of the school’s library, a new front entrance and a fieldhouse. The expansion project is expected to be completed by the end of the 2015-2016 school year.

Other Financial Highlights

Although the housing market has remained relatively soft in the past several years, the District's financial position is in a continued growth phase due to increased enrollment. In fiscal year 2013, enrollment remained relatively flat with 2012. In fiscal year 201 4, the District’s enrollment increased

1.9

% over fiscal year 2013 due to the District’s senior class graduating and being replaced by a larger kindergarten class.

Over the past few years, n ew construction within the District’s boundaries has been on a slight uptick.

In fiscal year 2013, new construction increased 20% over fiscal year 2012. In fiscal year 2014, new construction increased 15% over fiscal year 2013. As a result of the increased construction, impact fee revenue increased from approximately $675 thousand in fiscal year 2013 to $1.13 million in fiscal year 2014. New construction by levy year follows:

In fiscal year 2008, the District began to directly pay for its employee health care benefits under a selfinsurance health plan. To minimize year-to-year fluctuations and resulting financial risks, the District's self-funded health plan is managed by a third party administrator and contains a stop-loss policy. In fiscal year 2014, the stop-loss policy covered catastrophic health care costs above $125 thousand per insured individual. In fiscal year 2014 , the District’s healthcare costs increased by $260 thousand from prior years $6.32 million to $6.58 million.

The Illinois State Board of Education (ISBE) acknowledged an obligation to fund an additional $1.29 million from the fiscal year 2005 General State Aid claim. This was recorded as a receivable in both financial statement presentations; however, an offsetting liability (deferred revenue) has also been recorded in the fund financial statements due to the timing of the receipt of payment. To date, the

District has received $.965 million. During fiscal year 2014, the District received $25 thousand. The remaining receivable and deferred revenue balance approximate $.326 million.

12



Fiscal Year 2014 Government-Wide Financial Analysis

Figure A-1

Summary Statement of Net Position

June 30

Governmental

Activities

2014

Governmental

Activities

2013

Increase

(Decrease)

%

Change

Current assets

Capital assets,

net of depreciation

$ 110,697,521

Total assets

167,636,849

278,334,370

166,970,252

283,413,154

666,597

(5,078,784)

-4.9%

0.4%

-1.8%

Deferred charge on refunding

Total deferred outflows on resources

10,283,349

10,283,349

Long-term liabilities

Other liabilities

Total liabilities

142,873,897

14,173,007

157,046,904

Unavailable rev-property taxes

Total deferred inflows or resources

31,091,819

31,091,819

Net position:

Net investment in capital assets

Restricted

(for debt service, capital projects and

fire prevention and safety fund)

Unrestricted

Total Net Position

41,568,043

53,377,591

5,533,362

$ 100,478,996

-

-

137,621,915

10,510,794

148,132,709

30,904,188

30,904,188

10,283,349

10,283,349

100.0%

100.0%

5,251,982

3,662,213

8,914,195

187,631

187,631

3.8%

34.8%

6.0%

0.6%

0.6%

61,642,993 (20,074,950) -32.6%

55,277,101

(12,543,837)

(1,899,510)

18,077,199

-3.4%

-144.1%

-3.7%

Analysis of the fiscal year 2014 Statement of Net Position

Overall, the District's total Net Position at June 30, 2014 decreased to $100.5 million from $104.4 million in fiscal year 2013, a decrease of (3.7%) or approximately $3.9 million due to the expenditures related to the athletic fields project at Huntley High School. In fiscal year 2014, the District's total assets decreased ($5.1) million while the District's current assets decreased ($5.7) million. As a result of construction in progress, the District's capital assets increased $700 thousand in fiscal year 2014.

The District's total liabilities increased by $8.9 million in fiscal year 2014 primarily due to an increase in long-term liabilities of $5.3 million (see Note 6 in the Notes to the Financial Statements). Other liabilities increased $3.7 million primarily due to increased accounts payable and interest payable.

13



Fiscal Year 2014 Statement of Activities

Figure A-2

Revenues

Program revenues

Charges for services

Operating grants & contributions

Capital grants & contributions

Total program revenues

Summary Statement of Activities

June 30

Governmental

Activities

2014

Governmental

Activities

2013

$ 6,194,729

24,909,964

-

31,104,693

$ 6,191,931

21,470,876

39,417,589

67,080,396

General revenues

Property taxes/CPPRT

State formula aid & formula grants

Other

Total general revenues

Total revenues

Expenses

Instruction

Pupil & instructional services

Administration & business

Operations & maintenance

Transportation

Interest and fees

Other

Total expenses

63,479,426

13,944,744

75,811

77,499,981

108,604,674

59,445,750

9,328,388

11,335,983

6,574,564

5,980,168

9,991,404

9,845,678

112,501,935

61,979,803

13,996,468

141,304

76,117,575

143,197,971

54,572,590

10,035,845

9,917,366

6,549,138

6,023,517

8,499,085

7,826,191

103,423,732

Increase

(Decrease)

$ 2,798

3,439,088

(39,417,589)

(35,975,703)

1,499,623

(51,724)

(65,493)

1,382,406

(34,593,297)

4,873,160

(707,457)

1,418,617

25,426

(43,349)

1,492,319

2,019,487

9,078,203

%

Change

0.0%

16.0%

100.0%

-53.6%

2.4%

-0.4%

-46.3%

1.8%

-24.2%

8.9%

-7.0%

14.3%

0.4%

-0.7%

17.6%

25.8%

8.8%

Increase (Decrease) in Net Position

Beginning Balance

Prior Year Adjustment

Ending Balance

$ (3,897,261)

$ 104,376,257

$ 100,478,996

$ 39,774,239

$ 65,759,006

$ (1,156,988)

$ 104,376,257

$ (43,671,500)

$ (3,897,261)

1120.6%

-3.7%

Analysis of the fiscal year 2014 Statement of Activities

Total revenues decreased by $34.6 million primarily driven by the District’s receipt of the $39.4 million

Capital Development Grant in fiscal year 2013. More specifically, Operating Grants and Contributions consisting of state and federal revenues (except General State Aid) increased by $3.4 million for state on-behalf revenue the result of the increase in the calculated rate from 28.05% to 35.41% of TRS salaries.

Total expenditures increased by $9.1 million primarily driven $6.5 million in capital projects expenditures for construction projects at Huntley High School, $3.4 million for state on-behalf expenditures along with increased Instructional costs for salaries and benefits as well as technology purchases (Figure A-2).

14



The following is a graphic illustration of the percent of revenue by source:

15



The following is a graphic illustration of the percent of expense by source:

16



Financial Analysis of the District's Governmental Funds

Consolidated School District 158 uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

The District's operating funds, which are comprised of the Educational Fund, Operations and

Maintenance Fund, Transportation Fund, Municipal Retirement/Social Security Fund, and Working

Cash Fund had an increase in fund balance during fiscal year 2014 of $2.5 million, resulting in an ending operating fund balance of $31.6 million. The increase in fund balance is primarily driven by favorability in salaries and benefits in fiscal year 2014 as well as approximately $900 thousand of unexpected tax levy dollars received before the revenue recognition cutoff of July 30 th

.

A Financial Analysis of District Funds is located in Figure A-3. “Other Financing” refers to Other

Financing Sources and Uses which nets to the financing sources from capital leases.

The District's non-operating or capital funds are comprised of the Debt Service, Capital Projects, and

Fire Prevention and Life Safety Funds which had a decrease in fund balance during fiscal year 2014 of

$10.0 million related to the construction projects at Huntley High School and debt service payments.

The Capital Projects Fund is used for construction projects and some related debt services, and the

Debt Service Fund is designated specifically for debt service.

The District's total fund balance, for all funds, in fiscal year 2014 is $68.8 million, a decrease of ($7.6) million from fiscal year 2013.

Figure A-3

Fund

Educational

O & M

Transportation

IMRF/Social Security

Working Cash

Debt Service

Capital Projects

Fire Prevention & Safety

Net by Fund $

Financial Analysis of District Funds

Revenues

June 30, 2014

Expenditures Other Financing

$ 82,107,924

7,733,569

6,962,332

2,517,208

334,480

8,272,883

773,121

32

108,701,549

7,076,973

5,320,058

2,324,810

-

13,757,022

6,508,440

$

-

117,073,562

$ (52,696)

(572,672)

277,233

-

-

2,328,613

(1,157,275)

-

$ 823,203

Net Change

$ (31,031)

83,924

$

1,919,507

192,398

334,480

(3,155,526)

(6,892,594)

32

(7,548,810)

Total Operating Funds

Total Capital Funds

$ 99,655,513

$ 9,046,036

$ 96,808,100

$ 20,265,462

$ (348,135)

$ 1,171,338

$ 2,499,278

$ (10,048,088)

Figure A-4

Object

Salaries

Employee benefits

Purchased services

Supplies and materials

Capital outlay

Other

Expenditures by Object

Analysis of District Expenses by Object

Operating

Funds

June 30, 2014

Capital

Funds

25,585,145

7,601,162

9,068,982

1,082,157

2,894,029

$ 7,567

(1,182)

1,646,472

1,687

4,853,895

13,757,022

$ 20,265,461

17

Total

Funds

25,583,963

9,247,634

9,070,669

5,936,052

16,651,051

% of Total

43.2%

21.9%

7.9%

7.7%

5.1%

14.2%

100.0%



Capital Asset and Debt Administration

Analysis of the fiscal year 2014 Capital Assets

By the end of fiscal year 2014, the District had compiled a broad range of capital assets including land, buildings, computers, furniture, and other equipment. The District recorded $216.6 million in gross assets and $49.0 million in accumulated depreciation, resulting in $167.6 million in net capital assets.

During fiscal year 2014, the District placed in service $5.9 million in capital additions, primarily the result of the construction projects at Huntley High School for the athletic fields and building expansion.

Fiscal year depreciation expense ended the year at $5.3 million, an increase of $.1 million from fiscal year 2013. (See Note 4 to the Financial Statements.)

Figure A-5

Land

Construction in Progress

Land improvements, net

Buildings, net

Equipment, net

Vehicles, net

Capital assets, net

Net Capital Assets

June 30

Governmental

Activities

Governmental

Activities

2014

$ 10,899,723

4,853,895

11,173,460

140,522,794

$

-

186,977

167,636,849

$

2013

10,899,723

-

10,922,932

143,908,487

310,597

928,513

$ 166,970,252

Increase

(Decrease)

$ -

4,853,895

250,528

(3,385,693)

(310,597)

(741,536)

$ 666,597

%

Change

0.0%

100.0%

2.3%

-2.4%

-100.0%

-79.9%

0.4%

Depreciation expense-fiscal year

Accumulated Depreciation

Capital assets

$ 5,269,455

48,963,083

$ 216,599,932

$ 5,243,854

43,693,628

$ 210,663,880

$ 25,601

5,269,455

$ 5,936,052

0.5%

12.1%

2.8%

Analysis of the fiscal year 2014 Long-Term Liabilities

As of June 30, 2014, the District has long-term debt in the amount of $142.9 million. The decrease in current maturities of long-term debt from June 30, 2013 to June 30, 2014 is due to the District’s restructuring and advance refunding of its escalating long term debt. As a result of the refunding, total long-term liabilities have increased from prior year. (See Note 6, Advance Refunding, in the Notes to the Financial Statements).

Figure A-6

Interest Payable

Outstanding Long-Term Liabilities

June 30

Governmental Governmental

Activities Activities

2014

$ 2,533,169

2013

$ 583,629

Long-term liabilities (due within 1 year)

Long-term liabilities (due after 1 year)

Total $

6,320,491

136,553,406

145,407,066 $

13,475,658

124,146,257

138,205,544

Increase

(Decrease)

$ 1,949,540

(7,155,167)

12,407,149

$ 7,201,522

%

Change

334.0%

-53.1%

10.0%

5.2%

See Capital Assets (Note 4) and Long-Term Liabilities (Note 6) to the Financial Statements for further information.

18



Factors Bearing on the District's Future

With the State of Illinois’ financial crisis, there is a material risk that future Illinois legislation will impact the District negatively. Currently, the Educational Funding Advisory Committee created SB16 in an attempt to develop an equitable solution with regard to the State’s funding formula. Unfortunately, under the current version of the bill, the District would lose approximately ($2.2) million in annual State funding. While it may appear to some that this is a noble, “Robin Hood” redistribution of funds from wealthy districts to poorer districts, this is a misconception. Districts such as ours, whose cost per pupil is more than 25% below the state average, are misrepresented as wealthy. District 158 has continued to increase academic performance and innovation while maintaining strong fiscal responsibility. The proposed formula does nothing to reward these indicators of success and in fact jeopardizes our ability to continue this model.

In addition, legislators are continuing to discuss shifting a portion of the State’s pension cost to school districts. This pension cost shift could cost the district an additional ($2.5) million in annual State funding.

The persistent weakness of the State’s economy is a growing concern. With the State prorating

General State Aid for the past four years, the State’s ability to properly fund education is more questionable now than at any time in recent memory.

Cost increases exceeding the general rate of inflation continue to be expected for the District relative to healthcare obligations for fiscal year 2015 and beyond. These costs represent a significant portion of the District’s budget and their rate of increase is a concern to Administration and the Board of

Education.

Other statistical information related to the District’s EAV and property tax rate history is detailed below in Figure A-7:

Figure A-7

Levy

Year

Assessed Valuation & Tax Rate History

Equalized

Assessed

Valuation

Percent

Increase

Total

Tax

Rate

2013 1,076,860,781 -5.16% 5.8796

2012

2011

2010

2009

2008

2007

1,135,474,043

1,263,876,921

1,263,367,866

1,434,694,262

1,406,256,475

1,323,395,381

-10.16%

0.04%

-11.94%

2.02%

6.26%

11.11%

5.4234

4.8300

4.8117

4.1230

4.0318

4.0323

2006

2005

2004

1,191,031,077

1,026,815,609

867,058,760

15.99%

18.43%

19.83%

4.1910

4.3366

4.6081

The District's employment groups are under contract as follows: o Teaching staff (Huntley Education Association) through fiscal year 2015. o Educational support staff (Huntley Education Support Personnel Association) through fiscal year 2016.

19



Contacting the District's Financial Management

This financial report is designed to provide the District's citizens, taxpayers, investors, and creditors with a general overview of the District's finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to:

Mark Altmayer, Chief Financial Officer

Consolidated School District 158

650 Academic Drive

Algonquin, Illinois 60102-4423

20

(THIS PAGE INTENTIONALLY LEFT BLANK)

Basic Financial Statements

.

EXHIBIT A

Cash and investments (note 3)

Receivables (net of allowance for uncollectibles):

Property taxes

Replacement taxes

Intergovernmental

Other

Student Activities

Prepaid items

Inventories

Capital Assets (note 4):

CONSOLIDATED SCHOOL DISTRICT 158

STATEMENT OF NET POSITION

JUNE 30, 2014

WITH COMPARATIVE ACTUAL TOTALS FOR JUNE 30, 2013

Land, construction in progress

ASSETS

Depreciable buildings, property, and equipment, net

Total Assets

DEFERRED OUTFLOWS OF RESOURCES


Total Deferred Outflows of Resources

LIABILITIES

Accounts payable

Salaries and wages payable

Due to other governments

Health insurance payable

Other current liabilities

Unearned revenues

Interest payable

Long-term liabilities (note 6):

Due within one year

Due after one year

Total Liabilities

DEFERRED INFLOWS OF RESOURCES

Unavailable revenue - property taxes

Total Deferred Inflows of Resources

NET POSITION

Net Investment in Capital Assets

Restricted

Unrestricted

Total Net Position

2014

$ 77,689,986

30,935,961

79,988

743,908

256,012

31,802

959,864

-

15,753,618

151,883,231

278,334,370

3,347,890

5,936,429

205,403

1,483,594

-

666,522

2,533,169

6,320,491

136,553,406

157,046,904

10,283,349

10,283,349

31,091,819

31,091,819

41,568,043

53,377,591

5,533,362

2013

$ 80,992,033

30,748,326

89,886

2,732,423

248,160

26,806

1,593,265

12,003

10,899,723

156,070,529

283,413,154

-

-

1,903,973

5,733,739

190,020

1,379,371

493

719,569

583,629

13,475,658

124,146,257

148,132,709

30,904,188

30,904,188

61,642,993

55,277,101

(12,543,837)

$ 104,376,257

The accompanying notes to the financial statements are an integral part of this statement.

21


STATEMENT OF ACTIVITIES

YEAR ENDED JUNE 30, 2014

WITH COMPARATIVE ACTUAL TOTALS AS OF JUNE 30, 2013

Expenses

Disbursed

Program Revenues

Charges for Services

Instruction

Support

Services Functions/ Programs

Governmental Activities

Instruction:

Regular programs

Special programs

Other instructional programs

Support Services:

Pupils

Instructional staff

General administration

School administration

Business

Transportation

Operations and maintenance

Central

Other supporting services

Community Services

Payments to other districts and gov't units

Interest and fees

Unallocated depreciation

Total Governmental Activities

$ 48,070,783

8,238,294

3,136,673

6,320,365

3,008,023

1,293,490

4,024,542

6,017,951

5,980,168

6,574,564

5,166,689

22,906

2,021

2,734,787

9,991,404

1,919,275

$ 3,344,421

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

$ 266,144

-

-

-

-

-

-

2,584,164

-

-

-

-

-

-

-

-

$ 112,501,935 $ 3,344,421 $ 2,850,308

General Revenues:

Taxes:

Real estate taxes, levied for educational purposes

Real estate taxes, levied for specific purposes

Real estate taxes, levied for debt service

Personal property replacement taxes

State aid - formula grants

Investment earnings

Total General Revenues

Change in Net Position

Net Position, Beginning of Year, as Previously Reported

Prior Period Adjustment

Bond issuance costs

Net Position, Beginning of Year, Restated

Net Position, End of Year


22

Program Revenues

Operating Grants & Contributions

Instruction

Support

Services

2014

Net (Expense)

Revenue and

Changes in Net Position

2013

$ 15,401,959

5,188,713

152,922

-

-

-

-

-

-

-

-

-

-

-

-

-

$ 20,743,594

$ -

-

-

456,482

-

-

-

902,999

2,806,889

-

-

-

-

-

-

-

$ 4,166,370

$ (29,058,259)

(3,049,581)

(2,983,751)

(5,863,883)

(3,008,023)

(1,293,490)

(4,024,542)

(2,530,788)

(3,173,279)

(6,574,564)

(5,166,689)

(22,906)

(2,021)

(2,734,787)

(9,991,404)

(1,919,275)

(81,397,242)

$ (27,673,344)

(2,783,554)

(3,062,157)

(6,033,825)

(3,589,393)

(1,390,266)

(3,940,882)

38,162,447

(3,157,948)

(6,549,138)

(2,919,520)

(40,968)

(4,191)

(2,937,239)

(8,499,085)

(1,924,273)

(36,343,336)

41,349,638

13,403,639

8,254,944

471,205

13,944,744

75,811

77,499,981

(3,897,261)

104,376,257

40,186,490

12,478,358

8,849,162

465,793

13,996,468

141,304

76,117,575

39,774,239

65,759,006

-

104,376,257

$ 100,478,996

(1,156,988)

64,602,018

$ 104,376,257

23

EXHIBIT B


BALANCE SHEET

GOVERNMENTAL FUNDS

JUNE 30, 2014


General

Fund

Operations and

Maintenance

Fund

Municipal

Transportation Retirement/Social

Fund Security Fund

ASSETS


Restricted Assets:

Cash, restricted for compensating balance


Property taxes

Replacement taxes

Intergovernmental

Other

Due from activity funds

Inventories

Prepaids

Total Assets

LIABILITIES

Accounts payable




Other current liabilities

Unearned revenues

Total Liabilities




FUND BALANCES

Nonspendable

Restricted

Committed (note 8)

Unassigned

Total Fund Balances

Total Liabilities, Deferred Inflows of

Resources, and Fund Balances

$

$

$

24,855,339

3,500,000

20,460,169

79,988

743,908

212,014

31,802

-

8,881,618

452,749

50,335,969

$ 769,056

5,925,487

205,403

1,332,267

-

649,405

20,035,629

20,035,629

452,749

3,500,000

2,000,000

15,465,973

21,418,722

50,335,969

$ 2,129,564

-

3,254,063

-

-

41,164

-

-

$

3,161,725

3,161,725

$

7,324

5,432,115

$ 706,031

9,587

-

34,123

-

15,247

764,988

7,324

1,498,078

-

-

1,505,402

5,432,115

$ 7,707,445

-

1,991,357

-

-

2,834

-

-

-

$

$

9,701,636

$ 103,456

1,355

-

117,204

-

1,870

223,885

1,934,849

1,934,849

-

7,542,902

-

-

7,542,902

9,701,636

$

$

1,237,354

1,172,904

-

-

-

-

-

-

2,410,258

$ 143,727

-

-

-

-

-

143,727

1,139,621

1,139,621

$

-

-

1,126,910

-

-

1,126,910

2,410,258


24

EXHIBIT C

Debt Service

Fund

Capital

Projects

Fund

Fire

Prevention and Life

Safety Fund 2014

Total

2013

$ 4,335,593

-

$ 33,894,700

-

$ 29,991

-

$ 74,189,986

3,500,000

$ 74,992,033

6,000,000

4,057,468

-

-

-

-

-

367,570

$ 8,760,631

-

-

-

-

-

-

132,221

$ 34,026,921

-

-

-

-

-

-

-

$ 29,991

30,935,961

79,988

743,908

256,012

31,802

-

959,864

$ 110,697,521

30,748,326

89,886

2,732,423

248,160

26,806

12,003

1,593,265

$ 116,442,902

$ -

-

-

-

-

-

-

$ 1,625,620

-

1,625,620

3,942,295

3,942,295

-

-

-

-

-

-

$ -

-

-

-

-

-

-

-

-

$ 3,347,890

5,936,429

205,403

1,483,594

-

666,522

11,639,838

$ 1,903,973

5,733,739

190,020

1,379,371

493

719,569

9,927,165

30,214,119

30,214,119

30,123,363

30,123,363

367,570

4,450,766

-

-

4,818,336

132,221

32,269,080

-

-

32,401,301

-

29,991

-

-

29,991

959,864

50,417,727

2,000,000

15,465,973

68,843,564

1,605,268

60,795,372

-

13,991,734

76,392,374

$ 8,760,631 $ 34,026,921 $ 29,991 $ 110,697,521 $ 116,442,902

25

(Continued)

EXHIBIT C

(Concluded)


RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET

TO THE STATEMENT OF NET POSITION

JUNE 30, 2014

Total fund balances - governmental funds

Amounts reported for governmental activities in the Statement of Net Position are different because:

Net capital assets used in governmental activities and included in the Statement of Net Position do not require the expenditure of financial resources and, therefore, are not reported in the governmental funds balance sheet.

Capital Assets

Less: Accumulated Depreciation

$ 216,599,932

(48,963,083)

$ 68,843,564

167,636,849

Certain revenues receivable by the District and recognized in the governmental funds balance sheet do not provide current financial resources and are deferred in the Statement of Net Position, as follows:

Property tax revenues

Deferred charges included in the Statement of Net Position are not available to pay for current period revenues and, therefore, is not recognized in the governmental funds balance sheet.


(877,700)

10,283,349

Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds.

Governmental funds report the effect premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. In addition, interest relating to longterm liabilities is not recorded in the governmental funds until due. All liabilities, both current and long-term, are reported in the statement of net position.

Balances as of June 30, 2014 were:

Accrued interest on long-term debt

Unamortized bond premium/discount

Long-term debt

(2,533,169)

(11,623,471)

(131,250,426) (145,407,066)

Total net position of governmental activities (Exhibit A) $ 100,478,996


26



STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS

FOR THE YEAR ENDED JUNE 30, 2014

WITH SUMMARIZED COMPARATIVE ACTUAL TOTALS FOR THE YEAR ENDED JUNE 30, 2013

REVENUES

Property taxes

Corporate personal property replacement taxes

Interest income

Contributions and donations

Other local sources

State sources

Federal sources

State on-behalf revenues

Total Revenues

EXPENDITURES

Current:

Instruction:

Regular programs

Regular programs - Pre-K

Special programs

Special programs - Pre-K


Support Services:

Pupils

Instructional staff



Business

Transportation


Central


Community Service

Payments to Other Districts and Gov't Units

Debt Service:

Principal

Interest

Other

State on-behalf expenditures

Capital outlay

Total Expenditures

General

Fund

$ 41,744,670

347,641

23,179

330,022

4,699,073

17,449,752

3,146,540

14,701,527

82,442,404

Operations and

Maintenance

Fund

$ 6,637,991

-

1,459

-

344,119

750,000

-

-

Municipal


Fund Security Fund

$ 4,062,222 $ 2,392,628

-

6,164

-

87,057

2,806,889

-

-

123,564

1,016

-

-

-

-

-

7,733,569 6,962,332 2,517,208

30,540,761

1,271,101

7,759,811

2,914

2,695,311

6,071,827

2,875,607

1,247,333

3,618,834

3,436,537

-

-

4,992,538

22,906

2,021

2,734,787

-

-

-

14,701,527

112,444

82,086,259

-

-

-

-

-

-

-

-

-

-

-

6,384,493

-

-

-

-

-

-

-

-

692,480

7,076,973

-

-

-

-

-

-

-

-

-

-

4,903,413

-

-

-

-

-

126,326

13,086

-

-

277,233

5,320,058

309,981

76,163.00

361,685

-

22,236

245,507

124,007

39,441

162,608

829,906

-

-

153,276

-

-

-

-

-

-

-

-

2,324,810

27

EXHIBIT D

Debt Service

Fund

$ 8,267,585

-

5,298

-

-

-

-

-

8,272,883

Capital

Projects

Fund

$ 38,663

-

-

734,458

-

-

-

-

773,121

Fire

Prevention and Life

Safety Fund

$ -

-

32

-

-

-

-

-

32

2014

$ 63,143,759

Total

2013

$ 61,712,742

471,205

37,148

1,064,480

5,130,249

21,006,641

3,146,540

14,701,527

465,793

133,516

961,519

5,238,200

60,442,262

3,106,559

11,336,112

108,701,549 143,396,703

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

12,070,346

1,141,599

545,077

-

-

13,757,022

-

-

-

-

-

-

-

-

-

1,654,545

-

-

-

-

-

-

-

-

-

-

4,853,895

6,508,440

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

30,850,742

1,347,264

8,121,496

2,914

2,717,547

6,317,334

2,999,614

1,286,774

3,781,442

5,920,988

4,903,413

6,384,493

5,145,814

22,906

2,021

2,734,787

12,196,672

1,154,685

545,077

14,701,527

5,936,052

117,073,562

29,721,463

1,159,571

7,836,934

2,967

2,806,844

6,443,413

3,580,962

1,383,532

3,697,148

4,489,002

4,983,285

6,358,572

2,898,590

40,968

4,191

2,937,239

11,580,940

1,223,708

6,040

11,336,112

1,146,015

103,637,496

28

(Continued)



GOVERNMENTAL FUNDS



General

Fund

Operations and

Maintenance

Fund

Municipal


Fund Security Fund

Excess (deficiency) of revenues over expenditures

Other Financing Sources (Uses)

Bonds issued

Premium on bonds issued

Capital leases

Transfers in

Transfers out

Payment to escrow agent

Total Other Financing Sources (Uses)

Net Change in Fund Balance

Fund Balance, Beginning of Year

Fund Balance, End of Year

$ 356,145

-

-

-

-

(52,696)

-

(52,696)

303,449

21,115,273

$ 21,418,722

$

$

656,596

-

-

-

-

(572,672)

-

(572,672)

83,924

1,421,478

1,505,402

$ 1,642,274

-

-

277,233

-

-

-

277,233

1,919,507

5,623,395

$ 7,542,902

$ 192,398

-

-

-

-

-

-

-

192,398

934,512

$ 1,126,910


29

Debt Service

Fund

Capital

Projects

Fund

Fire

Prevention and Life

Safety Fund 2014

Total

2013

$ (5,484,139) $ (5,735,319) $ 32 $ (8,372,013) $ 39,759,207

46,760,000

1,485,621

-

1,782,643

-

(47,699,651)

2,328,613

-

-

-

-

(1,157,275)

-

(1,157,275)

(3,155,526)

7,973,862

$ 4,818,336 $

(6,892,594)

39,293,895

32,401,301

-

-

-

-

-

-

-

32

29,959

$ 29,991

46,760,000

1,485,621

277,233

1,782,643

(1,782,643)

(47,699,651)

823,203

-

-

42,325

-

-

-

42,325

(7,548,810)

76,392,374

$ 68,843,564 $

39,801,532

36,590,842

76,392,374

EXHIBIT D

(Continued)

30

(Continued)

EXHIBIT D

(Concluded)


RECONCILIATION OF THE GOVERNMENTAL FUNDS


TO THE STATEMENT OF ACTIVITIES

JUNE 30, 2014

Net Change in Fund Balances - total governmental funds (Exhibit D)

Amounts reported for governmental activities in the statement of activities are different because:

When capital assets that are to be used in governmental activities are purchased or constructed, the

resources expended for those assets are reported as expenditures in governmental funds. However,

in the statement of activities, the cost of those assets is allocated over their estimated useful lives

and reported as depreciation expense. Capital outlays for items below the District's capitalization

limits are expensed.

Depreciation expense

Capital outlay over capitalization limits

$ (5,269,455)

5,936,052

$ (7,548,810)

666,597

Because some property taxes will not be collected for several months after the District's fiscal year

ends, they are not considered as "available" revenues in the governmental funds, and are instead

counted as deferred tax revenues. They are, however, recorded as revenues in the statement of

activities.

Repayment of debt principal is reported as an expenditure in governmental funds, but it reduces long-

term liabilities in the statement of net position and does not affect the statement of activities.

Advanced refunding of bond principal

Advanced premium on refunded capital appreciation bonds

Principal payments made

Interest on long-term debt in the statement of activities differs from the amount reported in the govern-

mental funds because interest is recorded as an expenditure in the funds when due, and thus

requires the use of current financial resources. In the statement of activities, however, interest

expense is recognized as the interest accrues, regardless of when it is due.

47,699,651

1,040,009

12,196,672

(96,875)

60,936,332

(1,949,540)

Bond proceeds and related premiums are reported as financing sources in governmental funds and

thus contribute to the change in fund balance. In the government-wide statements, however,

issuing debt increases long-term liabilities in the statement of net position and does not affect the

statement of activities. Proceeds were received from:

Premium on bonds sold

Refunding bonds

Capital lease

Some expenses reported in the statement of activities do not require the use of current financial

resources and therefore are not reported as expenditures in governmental funds. These expenses

include the change in:

Accretion on capital appreciation bonds

Amortization of bond premium/discount

(1,485,621)

(46,760,000)

(277,233)

(8,722,270)

1,340,159

(48,522,854)

(7,382,111)

Change in net position of governmental activities (Exhibit B) $ (3,897,261)


31

EXHIBIT E

Cash and investments

Total Assets


STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES

AGENCY FUNDS

JUNE 30, 2014

WITH COMPARATIVE TOTALS FOR JUNE 30, 2013

ASSETS

LIABILITIES

Due to student activities

Total Liabilities

2014 2013

$ 869,731

$ 869,731

$ 803,674

$ 803,674

$

$

869,731

869,731

$

$

803,674

803,674


32


CONSOLIDATED SCHOOL DISTRICT NO. 158

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2014

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Consolidated School District No. 158 (the “District”) operates as a public school system by an elected sevenmember Board of Education. The District is organized under the School Code of the State of Illinois, as amended. The District provides education for grades K through 12. The accounting policies of the District conform to accounting principles generally accepted in the United States of America, as applicable to local governmental units of this type. The following is a summary of the more significant accounting policies of the

District.

A. The Reporting Entity

In evaluating how to define the District for financial reporting purposes, management has considered all potential component units. The decision to include or exclude a potential component unit in the reporting entity is made by applying the criteria established by the Governmental Accounting Standards

Board (GASB). The definition of a component unit is a legally separate organization for which the

District is financially accountable and other organizations for which the nature and significance of their relationship with the District are such that exclusion would cause the reporting entity’s financial statements to be misleading or incomplete. The District is financially accountable if it appoints a voting majority of the organization’s governing body and (1) it is able to impose its will on that organization or

(2) there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on, the District. The District also may be financially accountable if an organization is fiscally dependent on the District regardless of whether the organization has (1) a separately elected governing board, (2) a governing board appointed by a higher level of government or (3) a jointly appointed board. There are no component units, as defined by GASB, which are included in the

District’s reporting entity. Even though there are local government agencies within the geographic area served by the District, such as the municipality, library and park district, these agencies have been excluded from the report because they are legally separate and the District is not financially accountable for them.

Also, the District is not included as a component unit in any other governmental reporting entity, as defined by GASB pronouncements.

Basis of Presentation B.

Government-wide Financial Statements

The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the District. The effect of interfund activity has been removed from these statements. All of the District’s operating activities are considered

“governmental activities”, that is, activities that are normally supported by taxes and intergovernmental revenues. The District has no operating activities that would be considered “business activities”.

The statement of activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function. Program revenues include (1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function. Taxes and other items not properly included among program revenues are reported as general revenues instead.

Government Fund Financial Statements

The accounts of the District in the governmental fund financial statements are organized and operated on the basis of funds. A fund is an independent fiscal and accounting entity with a self-balancing set of accounts that comprise its assets, liabilities, reserves, fund balance, revenues and expenditures. Fund accounting segregates funds according to their intended purpose, and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number of funds is maintained consistent with legal and managerial requirements.

33

C.



JUNE 30, 2014

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d)

Separate financial statements are provided for all governmental funds and fiduciary funds even though the fiduciary funds are excluded from the government-wide financial statements.

Measurement Focus and Basis of Accounting

The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Grants and similar items are recognized as revenue as soon as all eligibility requirements have been met.

Governmental fund financial statements are reported using the flow of current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized when they are both “measurable and available.” “Measurable” means that the amount of the transaction can be determ ined and “available” means collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the District considers property tax revenues available if they are collected within 30 days after year-e nd. All other state and federal revenues are “measureable and available if they are vouchered by the Illinois State Board of Education on or before June 30, 2014 and which are normally collected within 60 days of year end. Expenditures are recorded when the related fund liability is incurred. However, expenditures for future maturities of principal and interest on general long-term debt are recognized when due; and certain compensated absences, claims and judgments are recognized when the obligations are expected to be liquidated with expendable available financial resources.

In accordance with GASB No. 24, on-behalf payments (payments made by a third party for the benefit of the District, such as payments made by the state to the Teachers’ Retirement System) have been recognized in the financial statements.

Property taxes, replacement taxes, certain state and federal aid, and interest on investments are susceptible to accrual. Other receipts become measurable and available when cash is received by the

District and are recognized as revenue at that time.

Grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant and accordingly, when such funds are received they are recorded as deferred revenues until earned.

The funds of the District are described below:

Governmental Funds

General Fund – The General Fund, which consists of the legally mandated Educational Account and the

Working Cash Account is the general operating fund of the District and is always classified as a major fund. It is used to account for all financial resources except those required to be accounted for in other funds. This fund is primarily used for most of the instructional and administrative aspects of the

District’s operations. Revenues consist largely of local property taxes and state and federal government aid. The Working Cash Account accounts for financial resources held by the District to be used as temporary interfund loans for working capital requirements to the Educational Account and the Special

Revenue Fund’s Operation and Maintenance and Transportation Funds. Money loaned by the Working

Cash Account to other funds must be repaid within one year. As allowed by the School Code of Illinois, this account may be permanently abolished and become a part of the General Fund or it may be partially abated to the Educational Account, Special Revenue Funds, Debt Service Funds, or the Fire

Prevention and Life Safety Fund.

34



JUNE 30, 2014


Special Revenue Funds – account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes and include the Operations and Maintenance Fund,

Transportation Fund, and the Municipal Retirement Fund other than those accounted for in the Debt

Service Fund, Capital Projects Funds, or Fiduciary Funds.

Debt Service Fund – The Debt Service Fund accounts for the accumulation of resources for, and the payment of general long-term debt principal, interest and related costs. Since there are no legal requirements on bond indentures which mandate a separate fund be established for each bond issue, the District maintains one Debt Service Fund for all issues.

Capital Projects Fund – The Capital Projects Funds include both the Capital Projects Fund and the Fire

Prevention and Life Safety Fund. The Capital Projects Fund accounts for financial resources to be used for the acquisition or construction of major capital facilities. The Fire Prevention and Life Safety Fund accounts for financial resources to be used for school construction projects and authorized fire prevention and life safety projects.

Agency Funds – The Agency Funds (Student Activity Funds) account for assets held by the District in a trustee capacity or as an agent for student organizations. These funds are custodial in nature (assets equals liabilities) and do not involve measurement focus of the results of operations.

Major and Non-major Funds

An emphasis is placed on major funds with the governmental and proprietary categories.

A fund is considered major if it is the primary operating fund of the District or meets the following criteria: a. Total assets, liabilities, revenues and expenditures of that individual governmental or enterprise fund are at least ten percent of the corresponding total for all funds of that category or type; and: b. Total assets, liabilities, revenues or expenditures of the individual governmental or enterprise fund are at least five percent of the corresponding total for all governmental and enterprise funds combined.

The District has elected to treat all funds as major funds

The funds classified as major are as follows:

General Fund – See above for description.

Operations and Maintenance Fund – accounts for expenditures made for repair and maintenance of the

District’s buildings and land. Revenue consists primarily of local property taxes.

Transportation Fund – accounts for all revenue and expenditures made for student transportation.

Revenue is derived primarily from local property taxes and state reimbursement grants.

Municipal Retirement/Social Security Fund – accounts for the District’s portion of pension contributions to the Illinois Municipal Retirement Fund, payments to Medicare and payments to the Social Security

System for non-certified employees. Revenue to finance the contributions is derived primarily from local property taxes and personal property replacement taxes.

Debt Service Fund – accounts for the accumulation of resources for, and the payment of, general longterm debt principal, interest, and related costs. The primary revenue source is local property taxes levied specifically for debt service.

35



JUNE 30, 2014


Capital Projects Fund – accounts for the financial resources to be used for the acquisition or construction of, and/or additions to, major capital facilities.

Fire Prevention and Life Safety Fund – accounts for State-approved life safety projects financed through serial bond issues or local property taxes levied specifically for such purposes.

D.

Fiduciary Funds (not included in government-wide statements)

Fiduciary Funds – account for assets held by the District in a trustee capacity or as an agent for individuals, private organizations, other governments or other funds.

Agency Funds – include Student Activity Funds, Convenience Accounts and Other Agency Funds.

These funds are custodial in nature and do not present results of operations or have a measurement focus. Although the Board of Education has the ultimate responsibility for Activity Funds, they are not local education agency funds. Student Activity Funds account for assets held by the District which are owned, operated and managed generally by the student body, under the guidance and direction of adults or a staff member, for educational, recreational or cultural purposes. Convenience Accounts account for assets that are normally maintained by a local education agency as a convenience for its faculty, staff, etc.

Assets, Deferred Inflows/Outflows, Liabilities and Net Position or Equity

Deposits and Investments

State statutes authorize the District to invest in obligations of the U.S. Treasury, certain highly-rated commercial paper, corporate bonds, repurchase agreements, and the State Treasurer’s Investment

Pool. Investments are stated at fair value. Changes in fair value of investments are included as investment income.

Receivables and Payables

Transactions between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as “due to/from other funds.”

Property Tax Revenues

The District must file its tax levy ordinance by the last Tuesday in December of each year. The District’s

2013 levy ordinance was approved during the December 19, 2013 board meeting. The District’s property tax is levied each year on all taxable real property located in the District and it becomes a lien on the property on January 1 of that year. The owner of real property on January 1 in any year is liable for taxes of that year. The District’s annual property tax levy is subject to two statutory limitations:

Individual fund rate ceilings and the Property Tax Extension Limitation Act (PTELL).

The tax rate ceilings are applied at the fund level. These ceilings are established by state law subject to change only by the approval of the voters of the District.

The PTELL limitation is applied in the aggregate to the total levy (excluding certain levies for the repayment of debt). PTELL limits the increase in total taxes billed to the lesser of 5% or the percentage increase in the Consumer Price Index (CPI) for the preceding year. The amount can be exceeded to the extent there is “new growth” in the District’s tax base. The new growth consists of new construction, annexations and tax increment finance properties becoming eligible for taxation. The CPI rates applicable to the 2013 and 2012 tax levies were 1.5% and 1.7% respectively.

36



JUNE 30, 2014


Property taxes are collected by the Kane and McHenry County Collector/Treasurer, who remits to the

District its share of collections. Taxes levied in one year become due and payable in two equal installments: the first due on June 1 and the second due on September 1. Property taxes are normally collected by the District within 60 days of the respective installment dates.

The 2013 property tax levy is recognized as a receivable in fiscal 2014. The District considers that the first installment of the 2013 levy is to be used to finance operations in fiscal 2014. The District has determined that the second installment of the 2013 levy is to be used to finance operations in fiscal

2015 and has deferred the corresponding revenue under the full accrual basis of accounting.

Property Personal Replacement Taxes

Personal property replacement taxes are first allocated to the Municipal Retirement/Social Security

Fund, and the balance is allocated to the remaining funds at the discretion of the Board of Education.

Program Revenues

Amounts reported as program revenues include 1) Tuition and fees and 2) Grants and contributions that are restricted to meeting the operational or capital requirements of a particular function. All taxes, including those dedicated for specific purposes, are reported as general revenues rather than as program revenues.

Prepaid Items

Certain payments to vendors that reflect costs applicable to future accounting periods are recorded as prepaid assets. In addition, the District remitted to the respective bond paying agents, the amounts due on July 1, 2014. These amounts are reflected as prepaid.

Capital Assets

Capital assets, which include land, land improvements, buildings, building improvements, vehicles, equipment, and construction in progress, are reported in the government-wide financial statements.

Capital assets are defined by the District as assets with an initial individual cost of more than $5,000 and an estimated useful life of greater than one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair value at the date of donation. In 2014, the District engaged an appraisal company to estimate historical cost of its capital assets acquired prior to that date.

Depreciation of capital assets is provided using the straight-line method over the following estimated useful lives:

Assets Years

Buildings

Land improvements

Vehicles

Equipment

50

50

5

5-30

Compensated Absences

Twelve-month employees earn vacation days at the beginning of each fiscal year, which must be used in a year and a half’s time. Any unused vacation time not used in a year and a half is turned into sick days. Sick days accumulate and can be used toward an extra 2 year’s TRS credit The present sick pay policy is as follows for certified staff members:

37



JUNE 30, 2014


1. For certified staff hired prior to July 1, 2009--------14 days per school term

2. For certified staff hired after June 30, 2009:

0 – 4 years of service--------------------------------12 days per school term

5 and up years of service---------------------------14 days per school term

Sick leave shall accumulate to a maximum of 340 days except those certified staff members with more than 180 days as of July 1, 1998, their maximum will be that number accumulated at that time.

Certified staff members will be reimbursed at the rate of $15.00 per day for unused sick leave upon retirement up to a maximum of 40 days.

The present sick pay policy for non-certified staff (HESPA) is:

1. Hired prior to July 1, 2007 ----------------------------- 14 days per school term

2. Hired after July 1, 2007:

0 – 4 years of service----------------------------- 10 days per school term

5 and up years of service ------------------------14 days per school term

Sick leave shall accumulate to a maximum of 240 days.

The present sick pay policy for Educational Support staff is:

1. Hired prior to March 1, 2009----------------------------14 days per school term

2. Hired after March 1, 2009

0 – 4 years of service-------------------------------10 days per school term

5 and up years of service--------------------------14 days per school term

Sick leave shall accumulate to a maximum of 240 days.

Since the District does not pay for unused sick days until retirement, no accrual is estimable. An accrual for accumulated vacation days is presented in the financial statements and is reported in the General

Fund in the amount of $71,219, Operations & Maintenance Fund in the amount of $9,587 and the

Transportation Fund in the amount of $1,355.

Long-Term Obligations

In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the statement of net position. Bond premiums and discounts are deferred and amortized over the life of the applicable bonds using the effective interest method. Pursuant to

Governmental Accounting Standards Board Statement 65, Items Previously Reported as Assets and

Liabilities, issuance costs are now recognized as an expense in the period incurred. Bonds payable are reported net of the applicable bond premium or discount.

38



JUNE 30, 2014

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont ’d)

In the fund financial statements, governmental funds recognize bond premiums and discounts, as well as bond issuance costs, during the period incurred. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures (i.e. interest and other).

Comparative Data

The financial statements include summarized prior-year comparative information. Such information does not include sufficient detail to constitute a presentation in conformity with accounting principles generally accepted in the United States of America. Accordingly, such information should be read in conjunction with the District’s financial statements for the year ended June 30, 2013, from which such summarized information was derived.

Eliminations and Reclassifications

In the process of aggregating data for the government-wide financial statements, some amounts reported as interfund activity and balances were eliminated or reclassified.

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. The District has only one item that qualifies for this category. It is deferred charge on refunding reported in the government-wide statement of position. A deferred charge results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt.

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. The District has only one type of item, which arises only under a modified accrual basis of accounting, which qualifies for reporting in this category.

Accordingly, the item, unavailable revenue, is reported in both the government-wide statement of position and in the governmental funds balance sheet. The item for unavailable revenue is from property taxes. This amount is deferred and recognized as an inflow of resources in the period that the amounts become available.

NOTE 2 – EQUITY / FUND BALANCE REPORTING

Equity is classified as net position displayed in three components; Net Investment in Capital Assets, Restricted

Net Position, and Unrestricted Net Position.

Net Investment in Capital Assets – Consists of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes or other borrowings that are attributable to the acquisition, construction, or improvement of those assets less any unspent debt proceeds.

39



JUNE 30, 2014

NOTE 2 – EQUITY / FUND BALANCE REPORTING (Cont’d)

Restricted Net Position – Consists of net assets with constraints placed on their use either by 1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments or, 2) law through constitutional provisions or enabling legislation. The Restricted Net Position consists of the

General Fund ($5,952,749), the Operations and Maintenance Fund ($1,505,402), the Debt Service

Fund ($4,818,336), the Transportation Fund ($7,542,902), the Municipal Retirement/Social Security

Fund ($1,126,910), the Capital Projects Fund ($32,401,301), and the Fire Prevention and Life Safety

Fund ($29,991), totaling $53,377,591.

Unrestricted Net Position – All other net position that does not meet the definition of “restricted” or “net investment in capital assets.”

When both restricted and unrestricted resources are available for use, District’s policy to use restricted resources first, and then unrestricted resources as they are needed.

Governmental fund balances are to be classified into five major classifications; Nonspendable, Restricted,

Committed, Assigned, and Unassigned.

Nonspendable – the nonspendable fund balance classification includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. The “not in spendable form” criterion includes items that are not expected to be converted to cash, for example inventories and prepaid amounts.

Restricted – the restricted fund balance classification refers to amounts that are subject to outside restrictions, not controlled by the District. Items such as restrictions imposed by creditors (such as debt covenants), grantors, contributors, or laws or regulations of other governments, or imposed by law through constitutional provisions or enabling legislation. Special Revenue Funds are by definition restricted for those specified purposes. The District has several revenue sources received within different funds that also fall into these categories –



Special Education – revenues and the related expenditures of this restricted tax levy are accounted for in the Educational Account. Expenditures exceeded revenues for this purpose, resulting in no restricted fund balance.



State Grants – proceeds from state grants and the related expenditures have been included in the

Educational and Transportation Funds. At June 30, 2014, expenditures exceeded revenues from state grants, resulting in no restricted balance.



Federal Grants – proceeds from federal grants and the related expenditures have been included in the Educational Account. At June 30, 2014, expenditures exceeded revenues from federal grants, resulting in no restricted balance.



Social Security – expenditures and the related expenditures of this restricted tax levy are accounted for in the Municipal Retirement/Social Security Fund. Expenditures disbursed exceeded revenue received, resulting in no restricted balance.

Committed – the committed fund balance refers to amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the school board. Those committed amounts cannot be used for any other purpose unless the government removes or changes the specified use by taking the same type of formal action it employed to previously commit those amounts.

Assigned – The assigned fund balance classification refers to amounts that are constrained by the

District’s intent to be used for specific purposes, but are neither restricted nor committed. The District administration and board can assign balances.

40



JUNE 30, 2014

NOTE 2 – EQUITY / FUND BALANCE REPORTING (Cont’d)

Unassigned – the unassigned fund balance classification is the residual classification for amounts in the

General Fund for amounts that have not been restricted, committed, or assigned to specific purposes within the General Fund.

Expenditures of fund balances – unless specifically identified, expenditures reduce restricted balances first, then to committed balances, next assigned balances, and finally act to reduce unassigned balances. Expenditures for a specifically identified purpose will act to reduce the specific classification of fund balance that is identified.

NOTE 3 – DEPOSITS AND INVESTMENTS

At year end, the District’s cash and investments was comprised of the following:

Government-

Wide Fiduciary Total

Cash

Investments

$ 38,885,020

38,804,966 -

$ 39,754,751

38,804,966

Total $ 77,689,986 $ 78,559,717

For disclosure purposes, this amount is segregated into the following components: 1) cash on hand 2) deposits with financial institutions, which include amounts held in demand accounts, savings accounts and nonnegotiable certificates of deposit; and 3) other investments, which consist of all investments other than certificates of deposit, as follows:

Cash and

Investments

Cash on hand

Deposits with financial institutions

Other investments

$ 950

39,603,092

38,804,966

Total

At year end, the District had the following investments:

Investment Type Fair Value Maturity % of Portfolio Interest Rate

PMA Savings Deposit Accounts

Illinois Institutions Investor's Trust (IIIT) 3,003,100

On demand

On demand

92.26%

7.74%

Variable

Variable

Total 100.00%

Interest Rate Risk . The District’s investment policy seeks to ensure preservation of capital in the District’s overall portfolio. Return on investment is of secondary importance to safety of principal and liquidity. The policy does not limit investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. However, the policy requires the District investment portfolio to be sufficiently liquid to enable the District to meet all operating requirements as they come due. The weighted average of the portfolio maturity was 342.65 days and the weighted portfolio yield was 0.316%.

41



JUNE 30, 2014

NOTE 3 – DEPOSITS AND INVESTMENTS (Cont’d)

Credit Risk . State law limits investments in commercial paper, corporate bonds and mutual funds to the top two ratings issued by nationally recognized rating organization (NRSRO’s). The District has no investment policy that would further limit its investment choices. As of June 30, 2014, all the District’s other investments had either “AAA” or “A-1 +” ratings by Standard & Poor’s.

The Illinois School District Liquid Asset Fund Plus (ISDLAF+) and the Illinois Institutional Investors Fund (IIIT) are a not-for-profit investment trust formed pursuant to the Illinois Municipal Code and managed by a Board of

Trustees elected from participating members. Neither is registered with the SEC as an investment company.

Investments are each rated AAAm and are valued at share price, which is the price for which the investment could be sold.

Concentration of Credit Risk . The District’s policy states investments shall be diversified to avoid incurring unreasonable risks regarding specific security types and/or individual financial institutions. The District shall diversify its investments to the best of its ability based upon the type of funds invested, available institutions to invest in, and the cash flow needs of those funds. Diversification can be by type of investment, number of institutions invested in, and length of maturity.

Custodial Credit Risk – Deposits . With respect to deposits, custodial credit risk refers to the risk that, in the event of a bank failure, the District’s deposits may not be returned to it. The District’s investment policy limits the exposure to deposit custodial credit risk by requiring all deposits in excess of FDIC insurable limits to be secured by collateral in the event of default or failure of the financial institution holding the funds. As of June 30,

2014, of the $79,409,008 held on hand, in bank and investment accounts of the District, $78,408,039 is covered by collateral or FDIC coverage.

Custodial Credit Risk – Investments . With respect to investments, custodial credit risk is the risk that, in the event of the failure of the counterparty, the District will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The District’s investment policy limits the exposure to investment custodial credit risk by requiring all investments to be secured by private insurance or collateral. Investments held in liquid asset funds as indicated above are not collateralized or insured.

Separate cash and investment accounts are not maintained for all District funds; instead, the individual funds maintain their invested and uninvested balances in the common checking and investment accounts, with accounting records being maintained to show the portion of the common account balance attributable to each participating fund.

42



JUNE 30, 2014

NOTE 4 – CAPITAL ASSETS

Capital asset activity for the District for the year ended June 30, 2014 was as follows:

Balance

July 1, 2013 Increases Decreases

Capital Assets not Being Depreciated:

Land

Construction in Progress

$ 10,899,723

-

$ -

4,853,895

$ -

Total Capital Assets not Being Depreciated 10,899,723 4,853,895 -

Capital Assets Being Depreciated:

Land improvements

Buildings and improvements

Equipment

Vehicles

Total Capital Assets Being Depreciated

Less: Accumulated Depreciation for:

Land improvements

Buildings and improvements

Equipment

Vehicles

13,259,246

177,212,233

4,076,511

5,216,167

199,764,157

2,336,314

33,303,746

3,765,914

4,287,654

520,922

160,153

65,863

335,219

1,082,157

3,545,846

270,394

376,460

1,076,755

-

-

-

-

-

-

-

-

Total Accumulated Depreciated 43,693,628 5,269,455 -

Net Capital Assets Being Depreciated

Net Governmental Activities Capital Assets

156,070,529

$ 166,970,252

(4,187,298) -

$ 666,597 $ -

Depreciation expense was recognized in the operating activities of the District as follows:

Governmental Activities

Regular programs

Special programs


Guidance services

Educational media services




Pupil transportation

Food services

Information services

Data processing services

Unallocated

Total

Depreciation

1,171,250

113,884

419,126

3,031

8,409

6,716

243,100

190,071

1,076,755

96,963

19,703

1,172

1,919,275

5,269,455

Balance

June 30, 2014

$ 10,899,723

4,853,895

15,753,618

13,780,168

177,372,386

4,142,374

5,551,386

200,846,314

2,606,708

36,849,592

4,142,374

5,364,409

48,963,083

151,883,231

$ 167,636,849

43



JUNE 30, 2014

NOTE 5 – CAPITAL LEASES

As of June 30, 2014, the District is obligated under various capital leases for the purchase of school buses and copier equipment as follows:

Buses

On August 10, 2010, the District entered into a capital lease with Sovereign Bank for the purchase of (5) 2012

IC/CE 77 passenger buses for a total cost of $225,198. The lease calls for (5) period payments of $53,911 with one payment due at time of purchase and four payments due August 1, 2011 through 2014. The remaining annual payments at June 30, 2014 are:

Due

Date Principal Interest Total

August 1, 2014 $ 45,468 $ 8,443 $ 53,911

$ 45,468 $ 8,443 $ 53,911

On July 1, 2011, the District entered into a capital lease with Sovereign Bank for the purchase of (2) 2010 IC/CE

77 passenger buses for a total cost of $124,200. The lease calls for (5) period payments of $26,728 including implied interest with one payment of $26,728 at time of purchase and four payments due July 25, 2012 through

July 25, 2015. The remaining annual payments at June 30, 2014 are:

Due


July 25, 2014

July 25, 2015

$ 24,805

25,749

$ 1,923

979

$ 26,728

26,728

$ 50,554 $ 2,902 $ 53,456

On July 8, 2013, the District entered into a capital lease with Sovereign Bank for the purchase of (3) 2012 IC/CE

54 w/c passenger buses for a total cost of $277,233. The lease calls for (5) period payments of $58,773 with one payment due at time of purchase and four payments due July 8, 2014 through 2017. The remaining annual payments at June 30, 2014 are:

Due


July 8, 2014

July 8, 2015

July 8, 2016

July 8, 2017

$ 52,217

53,784

55,398

57,061

$ 6,556

4,989

3,375

1,712

$ 58,773

58,773

58,773

58,773

$ 218,460 $ 16,632 $ 235,092

Copiers

On March 16, 2012, the District entered into a capital lease with De Lage Landen Public Finance, LLC for the purchase of (16) Canon copiers for a total of $171,645. The lease calls for (60) monthly payments of $3,172 per month including interest at 4.141%. The payments commence April 28, 2012 and continue through March 28,

2017. The remaining annual payments at June 30, 2014 are:

44



JUNE 30, 2014

NOTE 5 – CAPITAL LEASES (Cont’d)

Due in

Year Ending Principal Interest Total

June 30, 2015

June 30, 2016

June 30, 2017

$ 34,746

36,212

24,987

$ 3,318

1,852

389

$ 38,064

38,064

25,376

$ 95,945 $ 5,559 $ 101,504

On March 28, 2013, the District entered into a capital lease with De Lage Landen Public Finance, LLC for the purchase of (3) Canon copiers for a total of $21,837. The lease calls for (48) monthly payments of $516 per month including interest at 6.3156%. The payments commence April 28, 2013 and continue through March 28,


Due in


June 30, 2015

June 30, 2016

June 30, 2017

$ 5,332

5,679

5,014

$ 860

513

146

$ 6,192

6,192

5,160

$ 16,025 $ 1,519 $ 17,544

On June 7, 2013, the District entered into a capital lease with De Lage Landen Public Finance, LLC for the purchase of (3) Canon copiers for a total of $20,488. The lease calls for (48) monthly payments of $482 per month including interest at 6.0893%. The payments commence June 21, 2013 and continue through June 21,


Due in


June 30, 2015

June 30, 2016

June 30, 2017

$ 4,982

5,295

5,144

$ 802

489

158

$ 5,784

5,784

5,302

$ 15,421 $ 1,449 $ 16,870

NOTE 6 – DEBT SERVICE REQUIREMENTS

The following is a summary of the components of long-term debt and related transactions of the District for the year ended June 30, 2014:

45



JUNE 30, 2014

NOTE 6 – DEBT SERVICE REQUIREMENTS (Cont’d)

Balance Accretions/

Governmental Activities July 1, 2013 Additions

Defeased/

Retired

General Obligation Bonds

Capital Appreciation Bonds

Debt Certificates

Capital Leases

Subtotal

$ 24,305,000

97,357,585

3,105,000

336,312

125,103,897

$ 46,760,000

21,805,968

-

277,233

68,843,201

$ 2,140,000

60,035,000

350,000

171,672

62,696,672

Unamortized bond premium/ discount

Total Long-Term Debt $

12,518,018

137,621,915 $

1,485,621

70,328,822 $

2,380,168

65,076,840

Balance

June 30, 2014

$ 68,925,000

59,128,553

2,755,000

441,873

131,250,426

11,623,471

$ 142,873,897

Due Within

One Year

$ 750,000

3,855,000

350,000

167,551

5,122,551

Bonds are direct obligations and pledge the full faith and credit of the District. Debt certificates and capital leases are payable only from the general revenues of the District. Bonds, debt certificates, and capital leases currently outstanding are as follows:

Purpose Interest Rates Face Amount Carrying Amount

Refunding Bonds - 2005

Refunding Bonds - 2006B





Capital Appreciation Bonds - 2000



Capital Appreciation Bonds - 2003A


Debt Certificates - 2011A

Debt Certificates - 2011B

Capital Leases - Buses

Capital Leases - Copiers

5.000%

3.500% - 4.450%

3.000% - 3.900%

4.000% - 4.625%

4.500%

5.000% - 5.625%

N/A

N/A

N/A

N/A

N/A

1.000% - 4.250%

2.000% - 3.250%

N/A

N/A

46,760,000

100,000

60,760,000

21,555,000

21,830,000

6,555,000

3,200,000

2,490,000

3,825,000

6,095,000

2,900,000

1,055,000

1,700,000

314,482

127,391

6,555,000

3,200,000

2,490,000

3,825,000

6,095,000

46,760,000

56,594

2,439,294

33,218,222

13,896,004

9,518,439

1,055,000

1,700,000

314,482

127,391

Total

Unamortized Premium/Discount

179,266,873

-

131,250,426

11,623,471

179,266,873 142,873,897

As of June 30, 2014, the annual debt service cash flow requirements to service bonds, debt certificates, and capital leases are as follows:

46

1,197,940

$ 6,320,491



JUNE 30, 2014


Year Ending June 30 Principal Interest

2023

2024

2025

2026

2027

2028

2029

2030

2015

2016

2017

2018

2019

2020

2021

2022

2031

2032

2033

$

18,210,000

19,030,000

20,425,000

21,275,000

5,122,551

6,151,719

6,455,542

6,777,061

7,110,000

8,045,000

7,530,000

6,375,000

-

-

4,000,000

9,660,000

10,650,000

10,950,000

11,500,000

$ 4,353,466

3,570,143

3,527,259

3,476,508

3,423,307

3,395,233

3,350,394

3,302,666

3,258,854

3,219,881

3,178,196

2,805,960

2,519,225

2,519,225

2,519,225

2,309,225

1,790,000

1,190,937

575,000

Total

$ 9,476,017

9,721,862

9,982,801

10,253,569

10,533,307

11,440,233

21,560,394

22,332,666

23,683,854

24,494,881

10,708,196

9,180,960

2,519,225

2,519,225

6,519,225

11,969,225

12,440,000

12,140,937

12,075,000

Total $ 179,266,873 $ 54,284,704 $ 233,551,577

The District is subject to the Illinois School Code, which limits the amount of certain indebtedness to 13.8% of the most recent available equalized assessed valuation of the District. For the tax year 2013 the valuations were:

McHenry County

Kane County

$ 875,487,421

201,373,360

Total equalized assessed valuation

Statutory Limitation

1,076,860,781

13.8%

$ 148,606,788 Statutory Debt Limit, based on 2013 assessed valuation

Debt applicable:


Refunding Bonds - 2006B





School Building Bonds - 2000



School Building Bonds - 2003A


Debt Certificates - 2011A

Debt Certificates - 2011B

Capital Leases - Buses

Capital Leases - Copiers

$ 6,555,000

3,200,000

2,490,000

3,825,000

6,095,000

46,760,000

18,892

826,529

12,759,135

5,506,910

3,932,329

1,055,000

1,700,000

314,482

127,391

Total applicable debt

Legal Debt Margin

$

$

95,165,668

53,441,120

47



JUNE 30, 2014


There are numerous covenants with which the District must comply in regard to these bond issues. As of June

30, 2014, the District was in compliance with all significant bond covenants.

Advance Refunding

The District issued $46,760,000 in General Obligation Refunding Bonds with interest rates ranging from 5.000% to 5.625%. The proceeds were used to advance refund $37,416,302 of outstanding 2000, 2001, 2003, and

2003 Series A General Obligation School Building Bonds. The net proceeds of $47,699,651 were deposited with an escrow agent to provide funds for the future debt service payment on the refunded bonds.

The reacquisition price exceeded the net carrying amount of the old debt by $10,283,349. This amount is being netted against the new debt and amortized over the remaining life of the refunding debt. The District refunded the 2000, 2001, 2003, and 2003 Series A General Obligation School Building Bonds to reduce its total debt service payments and to obtain an economic loss (difference between the present values of the debt service payments on the old and new debt) of $2,423,450.

NOTE 7 – INTERFUND TRANSFERS

The District made the following interfund transfers:

The District made interfund transfers from the General Fund to the Debt Service Fund in the amount of $52,696 for capital lease payments.

The District made interfund transfers from the Operations and Maintenance Fund to the Debt Service Fund in the amount of $572,672 for debt certificate and bond payments.

The District made interfund transfers from the Capital Projects Fund to the Debt Service Fund in the amount of

$1,157,275 for levy abatement.

NOTE 8 – COMMITMENTS

At June 30, 2014, the District has $2,000,000 currently on deposit within the General Fund as committed for future capital improvements of the District.

NOTE 9 – RISK MANAGEMENT

The District is exposed to various risks of loss related to employee health benefits; workers’ compensation claims; theft of, damage to, and destruction of assets; and natural disasters. To protect from such risks, the

District participates in the following public entity risk pools: Collective Liability Insurance Cooperative (CLIC).

The District pays annual premiums to the pools for insurance coverage. The arrangements with the pools provide that each will be self-sustaining through member premiums, and will reinsure through commercial companies for claims in excess of certain levels established by the pools. There have been no significant reductions in insurance coverage from coverage in any of the past three fiscal years.

The District continues to carry commercial insurance for all other risks of loss, including torts and professional liability insurance. Premiums have been recorded as expenditures in the appropriate funds. There have been no significant reductions in insurance coverage from coverage in the prior years. Settled claims resulting from these risks have not exceeded commercial insurance coverage in any of the past three fiscal years. The District is self-insured for health insurance coverage with Blue Cross Blue Shield being the third party administrator. At

June 30, 2014, the District has recorded an estimated liability for claims incurred but not reported in the amount of $1,483,594. This represents, based upon its experience, a three month reserve. The liability was recorded in the General Fund ($1,332,267), Operations & Maintenance Fund ($34,123) and Transportation Fund

($117,204).

48



JUNE 30, 2014

NOTE 10 – JOINT AGREEMENTS

The District and eighteen other districts within McHenry County have entered into a joint agreement, Special

Education District of McHenry County (SEDOM) that provides special education services to residents of the school districts enrolled. Each member district has a financial responsibility for annual and special assessments as established by the management council. The District does not have an equity interest in this joint agreement.

Complete financial statements for SEDOM can be obtained at the Administrative offices located at 1200

Claussen Drive, Woodstock, IL 60098.

NOTE 11 – RETIREMENT FUND COMMITMENTS

A. Teachers’ Retirement System of the State of Illinois

The employer participates in the Teachers’ Retirement System of the State of Illinois (TRS). TRS is a costsharing multiple-employer defined benefit pension plan that was created by the Illinois legislature for the benefit of Illinois public school teachers employed outside the city of Chicago.

The Illinois Pension Code outlines the benefit provisions of TRS, and amendments to the plan can be made only by legislative action with the Governor’s approval. The State of Illinois maintains the primary responsibility for funding the plan, but contributions from participating employers and members are also required. The TRS

Board of Trustees is responsible for the system’s administration.

TRS members include all active non-annuitants who are employed by a TRS-covered employer to provide services for which teacher licensure is required. The active member contribution rate for the year ended June

30, 2014 was 9.4 percent of creditable earnings. The same contribution rate applies to members whose first contributing service is on or after Jan. 1, 2011, the effective date of the benefit changes contained in Public Act

96-0889. These contributions, which may be paid on behalf of employees by the employer, are submitted to

TRS by the employer. The active member contribution rate was also 9.4 percent for the years ended June 30,

2013 and 2012.

The State of Illinois makes contributions directly to TRS on behalf of the employer ’s TRS-covered employees.



On-Behalf Contributions to TRS – The State of Illinois makes employer pension contributions on behalf of the employer. For the year ended June 30, 2014, State of Illinois contributions were based on

35.41 percent of creditable earnings not paid from federal funds, and the employer recognized revenue and expenditures of $14,309,318 in pension contributions that the State of Illinois paid directly to TRS.

For the years ended June 30, 2013 and June 30, 2012, the contribution rates were 28.05 percent

($10,975,941) and 24.91 percent ($9,317,729), respectively.

The employer makes other types of employer contributions directly to TRS:



2.2 Formula Contributions – Employers contribute 0.58 percent of total creditable earnings for the 2.2 formula change. This rate is specified by statute. Contributions for the year ended June 30, 2014 were

$234,517. Contributions for the years ending June 30, 2013 and June 30, 2012 were $227,064 and

$216,952, respectively.



Federal and Special Trust Fund Contributions – When TRS members are paid from federal and special trust funds administered by the employer, there is a statutory requirement for the employer to pay an employer pension contribution from those funds. Under a policy adopted by the TRS Board of

Trustees that has been in effect since the fiscal year ended June 30, 2006, employer contributions for employees paid from federal and special trust funds will be the same as the state contribution rate to

TRS. Public Act 98-0674 now requires the two rates to be the same.

49



JUNE 30, 2014

NOTE 11 – RETIREMENT FUND COMMITMENTS (Cont’d)

For the year ended June 30, 2014, the employer pension contribution was 35.41 percent of salaries paid from federal and special trust funds. For the years ended June 30, 2013 and 2012, the employer contribution was

28.05 and 24.91 percent, respectively. For the year ended June 30, 2014, salaries totaling $23,500 were paid from federal and special trust funds that required employer contributions of $8,231. For the years ended June

30, 2013 and June 30, 2012, required employer contributions were $5,356 and $1,040, respectively.



Early Retirement Option (ERO) – The employer is also required to make one-time employer contributions to TRS for members retiring under the Early Retirement Option (ERO). The payments vary depending on the age and salary of the member.

The maximum employer ERO contribution under the current program is 146.5 percent and applies when the member is age 55 at retirement.

For the year ended June 30, 2014, the employer paid $107,885 to TRS for employer contributions under the ERO program. For the years ended June 30, 2013 and June 30, 2012 the employer paid $106,233 and $-0-, respectively.



Salary increases over 6 percent and excess sick leave



If an employer grants salary increases over 6 percent and those salaries are used to calculate a retiree’s final average salary, the employer makes a contribution to TRS. The contribution will cover the difference in actuarial cost of the benefit based on actual salary increases and the benefit based on salary increases of up to 6 percent.

For the year ended June 30, 2014, the employer paid $4,377 to TRS for employer contributions due on salary increases in excess of 6 percent. For the years ended June 30, 2013 and June 30, 2012, the employer paid $13,247 and $5,664, respectively.



If an employer grants sick leave days in excess of the normal annual allotment and those days are used as TRS service credit, the employer makes a contribution to TRS. The contribution is based on the number of excess sick leave days used as service credit, the highest salary used to calculate final average salary, and the TRS total normal cost rate (17.29 percent of salary during the year ended June 30, 2014).

For the year ended June 30, 2014, the employer paid $-0- to TRS for sick leave days granted in excess of the normal annual allotment. For the years ended June 30, 2013 and June 30, 2012, the

Employer paid $-0- and $-0, respectively.

Further Information on TRS

TRS financial information, an explanation of TRS benefits, and descriptions of member, employer and state funding requirements can be found in the TRS Comprehensive Annual Financial Report for the year ended June

30, 2013. The report for the year ended June 30, 2014, is expected to be available in late 2014.

The reports may be obtained by writing to the Teachers’ Retirement System of the State of Illinois, 2815 West

Washington Street, P. O. Box 19253, Springfield, IL 62794-9253. The most current report is also available on the TRS Web site at http://trs.illinois.gov

.

B. THIS Fund Contributions

The employer participates in the Teacher Health Insurance Security (THIS) Fund, a cost-sharing, multipleemployer defined benefit postemployment healthcare plan that was established by the Illinois legislature for the benefit of retired Illinois public school teachers employed outside the city of Chicago. The THIS Fund provides

50



JUNE 30, 2014

NOTE 11 – RETIREMENT FUND COMMITMENTS (Cont’d) medical, prescription, and behavioral health benefits, but does not provide vision, dental, or life insurance benefits to annuitants of the Teachers’ Retirement System (TRS). Annuitants not enrolled in Medicare may participate in the state administered participating provider option plan or choose from several managed care options. Beginning February 1, 2014, annuitants who were enrolled in Medicare Parts A and B may be eligible to enroll in Medicare Advantage plans.

The State Employees Group Insurance Act of 1971 (5 ILCS 375) outlines the benefit provisions of THIS Fund and amendments to the plan can be made only by legislative action with the Governor’s approval. Effective July

1, 2012, in accordance with Executive Order 12-01, the plan is administered by the Illinois Department of

Central Management Services (CMS) with the cooperation of TRS. Section 6.6 of the State Employees Group

Insurance Act of 1971 requires all active contributors to the TRS who are not employees of the state to make a contribution to the THIS Fund.

The percentage of employer required contributions in the future will not exceed 105 percent of the percentage of salary actually required to be paid in the previous fiscal year.



On-Behalf Contributions to THIS Fund – The State of Illinois makes employer retiree health insurance contributions on behalf of the employer. State contributions are intended to match contributions to the

THIS Fund from active members which were 0.97 percent of pay during the year ended June 30, 2014.

State of Illinois contributions were $392,209 and the employer recognized revenue and expenditures of this amount during the year.

State contributions intended to match active member contributions during the years ended June 30,

2013 and June 30, 2012 were 0.92 and 0.88 percent of pay, respectively. State contributions on behalf of employees were $360,171 and $329,169 respectively.



Employer Contributions to THIS Fund – The employer also makes contributions to the THIS Fund.

The employer THIS Fund contribution was 0.72 percent during the year ended June 30, 2014 and 0.69 and 0.66 percent during the years ended June 30, 2013 and June 30, 2012, respectively. For the year ended June 30, 2014, the employer paid $291,124 to the THIS Fund. For the years ended June 30,

2013 and June 30, 2012, the employer paid $270,128 and $246,877, respectively, which was 100 percent of the required contribution.

Further information on THIS Fund

The publicly available financial report of the THIS Fund may be found on the website of the Illinois Auditor

General: http:/www.auditor.illinois.gov/Audit-Reports/ABC-List.asp. The current reports are listed under “Central

Management Services.” Prior reports are available under “Healthcare and Family Services.”

C. Illinois Municipal Retirement Fund

Plan Description . The employer’s defined benefit pension plan for Regular employees provides retirement and disability benefits, post retirement increases, and death benefits to plan members and beneficiaries. The employer plan is affiliated with the Illinois Municipal Retirement Fund (IMRF), an agent multiple-employer plan.

Benefit provisions are established by statute and may only be changed by the General Assembly of the State of

Illinois. IMRF issues a publicly available financial report that includes financial statements and required supplementary information (RSI). That report may be obtained on-line at www.imrf.org

.

Funding Policy . As set by statute, your employer Regular plan members are required to contribute 4.50 percent of their annual covered salary. The statute requires employers to contribute the amount necessary, in addition to member contributions, to finance the retirement coverage of its own employees. The employer annual required contribution rate for calendar year 2013 was 10.82 percent. The employer also contributes for disability benefits, death benefits and supplemental retirement benefits, all of which are pooled at the IMRF level.

Contribution rates for disability and death benefits are set by the IMRF Board of Trustees, while the supplemental retirement benefits rate is set by statute.

51



JUNE 30, 2014

NOTE 11 – RETIREMENT FUND COMMITMENTS (Cont’d)

Annual Pension Cost . The required contribution for calendar year 2013 was $1,044,466.

Three-Year Trend Information for the Regular Plan

Calendar

Year

Ending

Annual

Pension

Cost (APC)

Percentage of APC

Contributed

Net

Pension

Obligation

12/31/2013

12/31/2012 976,629

100%

100%

$ -

-

12/31/2011 917,987 100% -

The required contribution for 2013 was determined as part of the December 31, 2011, actuarial valuation using the entry age normal actuarial cost method. The actuarial assumptions at December 31, 2011, included (a) 7.5 percent investment rate of return (net of administrative and direct investment expenses), (b) projected salary increases of 4.00% a year, attributable to inflation, (c) additional projected salary increases ranging from 0.4% to

10% per year depending on age and service, attributable to seniority/merit, and (d) post retirement benefit increases of 3% annually. The actuarial value of your employer Regular plan assets was determined using techniques that spread the effects of short-term volatility in the market value of investments over a five-year period with a 20% corridor between the actuarial and market value of assets. The employer Regular plan’s unfunded actuarial accrued liability at December 31, 2011 is being amortized as a level percentage of projected payroll on an open 30 year basis.

Funded Status and Funding Progress . As of December 31, 2013, the most recent actuarial valuation date, the

Regular plan was 82.35 percent funded. The actuarial accrued liability for benefits was $15,918,101and the actuarial value of assets was $13,109,001, resulting in an underfunded actuarial accrued liability (UAAL) of

$2,809,100. The covered payroll for calendar year 2013 (annual payroll of active employees covered by the plan) was $10,033,299 and the ratio of the UAAL to the covered payroll was 28 percent.

The schedule of funding progress, presented as required supplementary information (RSI) following the notes to the financial statements, presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits.

D. Social Security/Medicare

Employees not qualifying for coverage under the Illinois Teacher’s Retirement System or the Illinois Municipal

Retirement Fund are considered “nonparticipating employees”. These employees and those qualifying for coverage under the Illinois Municipal Retirement Fund are covered under Social Security/Medicare.

NOTE 12 – SUBSEQUENT EVENTS

Subsequent events are events or transactions that occur after the balance sheet date but before the financial statements are issued or available to be issued. There are two types of subsequent events: recognized (events that relate to conditions present at the balance sheet date) and non-recognized (events or conditions that did not exist at the balance sheet date but arose after that date).

There have been no recognized or non-recognized subsequent events that have occurred between June 30,

2014, and the date of this audit report requiring disclosure in the financial statements.

52

REQUIRED SUPPLEMENTARY INFORMATION

Actuarial

Valuation

Date

12/31/2013

12/31/2012

12/31/2011

Actuarial

Value of

Assets

(a)

$ 13,109,001

12,045,440

10,718,166

CONSOLIDATED SCHOOL DISTRICT NO. 158

ILLINOIS MUNICIPAL RETIREMENT FUND

REQUIRED SUPPLEMENTARY INFORMATION

Schedule of Funding Progress

Actuarial Accrued

Liability

(AAL)

- Entry Age

(b)

$ 15,918,101

15,087,360

13,728,803

Unfunded

$

AAL

(UAAL)

(b-a)

2,809,100

3,041,920

3,010,637

Funded

Ratio

(a/b)

82.35%

79.84%

78.07%

Covered

Payrol

(c)

$ 10,033,299

9,688,781

9,348,137

UAAL as a

Percentage of Covered

Payroll

((b-a)/c)

28.00%

31.40%

32.21%

On a market value basis, the actuarial value of assets as of December 31, 2013 is $14,954,160. On a market basis, the funded ratio would be 93.94%.

The actuarial value of assets and accrued liability cover active and inactive members who have service credit with Huntley CSD 158. They do not include amounts for retirees. The actuarial accrued for retirees is 100% funded.

53


SCHEDULE 1


GENERAL FUND

COMBINING BALANCE SHEET

JUNE 30, 2014


Educational

Account

Working

Cash

Account 2014

Total

2013

ASSETS


Restricted assets

Cash restricted for compensating balance


Property taxes

Replacement taxes

Intergovernmental

Other

Due from activity funds

Inventories

Prepaids

Total Assets

LIABILITIES

Accounts payable




Other current liabilties

Unearned revenues

Total Liabilities




FUND BALANCES

Nonspendable

Restricted

Committed (note 8)

Unassigned

Total Fund Balances

Total Liabilities, Deferred Inflows of Resources, and Fund Balances

$ 22,471,070 $ 2,384,269

3,500,000 3,500,000

$ 20,117,026

6,000,000

20,297,347

79,988

743,908

212,014

31,802

-

452,749

162,822

-

-

-

-

-

-

$ 47,788,878 $ 2,547,091

20,460,169

79,988

743,908

212,014

31,802

-

452,749

20,346,312

89,886

2,016,839

146,327

26,806

12,003

1,111,536

$ 49,866,735

$ 769,056

5,925,487

205,403

1,332,267

-

649,405

$ -

-

-

-

-

-

8,881,618 -

19,877,428 158,201

19,877,428 158,201

$ 769,056

5,925,487

205,403

1,332,267

-

649,405

8,881,618

20,035,629

20,035,629

896,815

5,724,856

190,020

1,238,675

493

715,004

8,765,863

19,985,599

19,985,599

452,749

3,500,000

2,000,000

13,077,083

-

-

-

2,388,890

19,029,832 2,388,890

452,749

3,500,000

2,000,000

15,465,973

1,123,539

6,000,000

-

13,991,734

21,418,722 21,115,273

$ 47,788,878 $ 2,547,091 $ 49,866,735

54


GENERAL FUND

COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE



SCHEDULE 2

Revenues:

Local sources

State sources

State on-behalf revenues

Federal sources

Total Revenues Received

Expenditures:

Current:

Instruction

Support services

Community services

Payments to other districts and gov't units

State on-behalf expenditures

Capital outlay

Total Expenditures Disbursed

Excess (Deficiency) of Revenues

Over Expenditures


Capital leases

Transfers out

Total Other Financing (Uses)

Net Change in Fund Balances

Fund Balance - Beginning of Year

Fund Balance - End of Year

Original & Final Educational

Budget Account

2014

Working

Cash

Account

$ 46,697,528

17,233,859

13,762,888

2,764,613

80,458,888

$ 46,810,105

17,449,752

14,701,527

3,146,540

82,107,924

$ 334,480

-

-

-

334,480

Total

$ 47,144,585

17,449,752

14,701,527

3,146,540

82,442,404

2013

17,359,103

11,336,112

3,106,559

77,366,131

43,026,250

22,348,745

4,157

2,792,109

13,762,888

50,000

81,984,149

(1,525,261)

-

-

-

42,269,898

22,265,582

2,021

2,734,787

14,701,527

112,444

82,086,259

21,665

-

(52,696)

(52,696)

-

-

-

-

-

-

-

334,480

$ (1,525,261) (31,031) 334,480

19,060,863

$ 19,029,832

-

-

-

2,054,410

$ 2,388,890

42,269,898

22,265,582

2,021

2,734,787

14,701,527

112,444

82,086,259

356,145

40,613,580

20,779,756

4,191

2,937,238

11,336,112

81,623

75,752,500

1,613,631

-

(52,696)

42,325

(796,922)

(52,696) (754,597)

303,449 859,034

21,115,273

$ 21,418,722

20,256,239

55

SCHEDULE 3


OPERATIONS AND MAINTENANCE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL


WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2013

Revenues

Local Sources

General levy

Interest income

Rentals


Refund of prior year's expenditures

Other

Total Local Sources

State Sources

General state aid

Other

Total State Sources

Total Revenues

Expenditures

Support Services

Business

Operation and Maintenance of Plant Services

Salaries

Employee benefits

Purchased services


Capital outlay

Other objects

Non-capitalized equipment

Total

Pupil Transportation Services

Capital outlay

Total

Total Business

Total Support Services

Original & Final

Budget

-

2014

$ 6,580,580

13,008

203,400

-

-

50,000

6,846,988

$ 6,637,991

1,459

220,847

-

-

123,272

6,983,569

$ 6,410,755

1,744

244,548

674,919

215,000

110,032

7,656,998

750,000

750,000

7,596,988

1,090,934

168,546

3,345,449

1,767,884

1,188,200

3,500

-

7,564,513

21,523

21,523

7,586,036

7,586,036

Actual

750,000

-

750,000

7,733,569

1,045,815

153,734

3,469,511

1,705,980

673,696

7,053

2,400

7,058,189

18,784

18,784

7,076,973

7,076,973

2013

Actual

750,000

50,000

800,000

8,456,998

980,328

146,889

3,665,234

1,560,175

1,034,375

2,554

3,391

7,392,946

30,017

30,017

7,422,963

7,422,963

(Continued)

56

SCHEDULE 3

(Concluded)


OPERATIONS AND MAINTENANCE FUND




2014

Original & Final

Budget Actual

2013

Actual

Debt service

Interest

Total Debt Service

Total Expenditures

Excess (Deficiency) of Revenues Over Expenditures

Other Financing (Uses)

Transfers out





$

$

189,587

189,587

7,775,623

(178,635)

-

-

(178,635)

$

83,924

$

-

-

7,076,973

656,596

(572,672)

(572,672)

1,421,478

1,505,402

$ -

-

7,422,963

1,034,035

$

(153,727)

(153,727)

880,308

541,170

1,421,478

57

SCHEDULE 4


TRANSPORTATION FUND




Revenues

Local Sources

General levy

Regular transportation fees

Summer school transportation fees

Interest income

Total Local Sources

State Sources

Transportation - regular/vocational

Transportation - special education

Total State Sources

Total Revenues

Expenditures

Support Services

Business


Salaries

Employee benefits

Purchased services


Capital outlay

Other objects


Total

Total Business


Debt Service:

Interest

Principal

Total Debt Service

2014

Original & Final

Budget Actual

2013

Actual

$ 4,027,073

67,844

2,048

7,960

4,104,925

$ 4,062,222

78,954

8,103

6,164

4,155,443

$ 3,489,158

68,842

8,580

7,788

3,574,368

1,836,178

1,059,527

2,895,705

7,000,630

1,801,259

1,005,630

2,806,889

6,962,332

1,700,201

1,165,368

2,865,569

6,439,937

2,619,945

1,115,028

811,294

829,443

4,958

-

-

5,380,668

5,380,668

5,380,668

-

-

-

2,590,365

638,866

739,372

930,638

277,233

4,172

-

5,180,646

5,180,646

5,180,646

13,086

126,326

139,412

2,539,418

960,667

643,323

833,082

-

5,638

1,157

4,983,285

4,983,285

4,983,285

23,479

295,080

318,559

(Continued)

58

SCHEDULE 4

(Concluded)


TRANSPORTATION FUND




2014

Original & Final

Budget

$ 5,380,668

Actual

$ 5,320,058

1,619,962 1,642,274

2013

Actual

1,138,093

Total Expenditures

Excess of Revenues over Expenditures

Other Financing Sources

Capital leases

Total Other Financing Sources




$

-

-

1,619,962

277,233

277,233

1,919,507

5,623,395

$ 7,542,902

-

-

1,138,093

4,485,302

$ 5,623,395

59

SCHEDULE 5


MUNICIPAL RETIREMENT/SOCIAL SECURITY FUND




Revenues

Local Sources

IMRF levy

Social security/medicare levy


Interest income

Total Local Sources

Total Revenues

Expenditures

Instruction

Regular programs

Pre-K

Special education programs

CTE programs

Interscholastic programs

Summer school programs

Gifted programs

Driver's education programs

Bilingual programs

Total Instruction

Support Services

Pupils

Attendance and social work services

Guidance services

Health services

Psychological services

Speech pathology and audiology services

Other support services

Total Pupils

Instructional staff

Improvement of instruction services

Educational media services

Total Instructional Staff

2014

Original & Final

Budget Actual

2013

Actual

$ 2,371,911

-

113,349

4,688

2,489,948

2,489,948

$ 1,089,527

1,303,101

123,564

1,016

2,517,208

2,517,208

$ 1,154,703

1,156,020

118,102

1,704

2,430,529

2,430,529

399,338

69,037

384,360

5,096

12,704

3,188

1,756

1,364

8,027

884,870

26,222

9,637

151,106

8,794

28,448

36,761

260,968

3,119

72,544

75,663

309,981

76,163

361,685

6,369

8,167

677

684

1,053

5,286

770,065

25,650

8,757

159,735

9,526

23,356

18,483

245,507

6,260

117,747

124,007

473,183

62,951

356,869

5,744

7,665

785

720

1,437

4,835

914,189

25,573

9,451

163,282

9,046

23,250

20,289

250,891

5,106

117,904

123,010

(Continued)

60

SCHEDULE 5

(Concluded)


MUNICIPAL RETIREMENT/SOCIAL SECURITY FUND




Expenditures (Cont'd)

Support Services (Cont'd)

General Administration

Executive administration services

Total General Administration

School Administration

Office of the principal services

Total School Administration

Business

Direction of business support services

Fiscal services

Facilities acquisition and construction services

Operations and maintenance of plant services

Pupil transportation services

Food services

Total Business

Central

Information services

Staff services

Data processing services

Total Central


Total Expenditures




Budget

$

2014

Original & Final

40,029

40,029

168,545

168,545

24,720

60,729

-

177,274

469,233

122,913

854,869

5,729

32,027

78,548

116,304

1,516,378

2,401,248

$ 88,700

Actual

$ 39,441

39,441

162,608

162,608

24,384

52,377

1,264

180,743

448,331

122,807

829,906

5,692

34,194

113,390

153,276

1,554,745

2,324,810

192,398

934,512

$ 1,126,910

2013

Actual

$ 38,506

38,506

159,294

159,294

23,557

59,792

-

169,268

438,515

116,754

807,886

5,571

26,961

82,363

114,895

1,494,482

2,408,671

21,858

$

912,654

934,512

61


NOTES TO REQUIRED SUPPLEMENTARY INFORMATION

JUNE 30, 2014

Budgets and Budgetary Accounting

The District follows procedures mandated by Illinois State law and District Board policy to establish budgetary data reflected in the financial statements. The modified accrual basis budgeted amounts in this report are the result of full compliance with the following procedures:

The budget lapses at the end of each fiscal year.

The District follows these procedures in establishing the budgetary data reflected in the financial statements.

1. The administration submits to the Board of Education a proposed operating budget for the fiscal year commencing July 1. The operating budget includes proposed expenditures and the means of financing them.

2. Public hearings are conducted and the proposed budget is available for inspection to obtain taxpayer comments

3. Prior to September 30, the budget is legally adopted through passage of a resolution.

4. Management is authorized to transfer budget amounts, provided funds are transferred between the same function and object codes. The Board of Education is authorized to transfer up to 10% of the total budget between functions within any fund; however any revisions that alter the total expenditures of any fund must be approved by the Board of Education, after following the public hearing process mandated by law.

5. Formal budgetary integration is employed as a management control device during the year for all governmental funds.

6. All budget appropriations lapse at the end of the fiscal year.

7. By the last Tuesday in December, a tax levy resolution is filed with the county clerk to obtain tax revenues.

The original budget was adopted on September 19, 2013.

Excess of Expenditures over Budget

For the year ended June 30, 2014, expenditures exceeded budget in the General Fund by $102,110, in the Debt

Service Fund by $1,150,445 and the Capital Projects Fund by $2,567,440. The over expenditures in the

General Fund, Debt Service Fund, and Capital Projects Fund were covered by existing fund balances.

62


SUPPLEMENTARY INFORMATION

.

SCHEDULE 6


EDUCATIONAL ACCOUNT




2014

Original & Final

Budget Actual

2013

Actual

Revenues

Local Sources

General levy

Special education levy


Regular tuition from pupils or parents

Regular tuition from other sources

Summer school tuition from pupils or parents

Special education tuition from other districts

Interest income

Sales to pupils - lunch

Sales to pupils - other

Sales to adults

Other food services

Admissions - athletic

Other district/school activity revenue

Rentals - regular textbooks

Rentals


Refund of prior year's expenditures

Drivers' education fees

Other

Total Local Sources

State Sources

General state aid

Special education - private facility tuition

Special education - extraordinary

Special education - personnel

Special education - orphanage - individual

Special education - orphanage - summer

Special education - summer school

CTE - secondary program improvement (CTEI)

Bilingual education - downstate - TPI

State free lunch & breakfast

Drivers education

Early childhood - block grant

State library grant

Other

Total State Sources

$ 41,065,009

-

390,066

12,326

3,099

68,522

-

51,175

2,610,816

70,948

42,098

12,162

32,512

295,293

1,447,061

45,765

127,125

1,946

49,984

37,376

46,363,283

13,196,630

609,898

1,249,355

1,723,811

20,986

330

43,677

28,212

73,409

4,882

48,908

226,994

6,767

-

17,233,859

$ 40,115,274

1,297,283

347,641

199,183

-

67,177

-

20,812

2,472,234

47,582

32,697

31,651

71,732

342,336

1,296,354

11,227

330,022

13,882

34,070

78,948

46,810,105

13,194,744

950,823

1,102,456

1,775,972

18,256

-

18,271

48,040

32,788

6,345

50,191

226,994

6,767

18,105

17,449,752

$ 40,321,457

-

347,690

20,980

-

74,632

14,148

40,750

2,361,658

53,000

31,446

10,409

66,776

285,162

1,226,821

32,682

246,600

31,890

38,640

35,163

45,239,904

13,246,468

753,344

1,134,054

1,703,431

22,432

-

46,760

27,708

82,363

7,245

53,183

226,994

13,674

41,447

17,359,103

(Continued)

63

SCHEDULE 6

(Continued)


EDUCATIONAL ACCOUNT




2014

Original & Final

Budget Actual

2013

Actual

Revenues (Cont'd)

Federal sources

National school lunch program

School breakfast program

Food service - commodities

Title I - low income

Federal - special education - IDEA - flow-through

Federal - special education - IDEA - room & board

CTE - perkins - title IIIE - tech prep

Title III - english language acquisition

Title II - teacher quality

Medicaid matching funds - administrative outreach

Medicaid matching funds - fee-for-service program

Other

$ 609,651

2,456

-

314,612

1,156,367

79,326

33,306

23,100

41,044

104,751

400,000

-

$

255,542

320,506

1,164,401

158,534

620,350

20,762

36,192

23,100

43,439

151,228

305,254

47,232

$ 595,340

7,338

214,639

254,388

1,205,505

305,000

34,321

28,700

48,701

135,279

277,348

-

Total Federal Sources

State On-behalf Revenue

2,764,613

13,762,888

3,146,540

14,701,527

3,106,559

11,336,112

80,124,643 82,107,924 77,041,678 Total Revenues

Expenditures

Instruction

Regular Programs

Salaries

Employee benefits

Purchased services


Other objects


Total

Pre-K Programs

Salaries

Employee benefits

Purchased services


Total

Special Education Programs

Salaries

Employee benefits

Purchased services


Capital outlay


Total

25,510,828

4,428,595

505,351

5,401

30,713,515

1,076,640

261,340

144,966

1,256,246

6,589,190

1,006,316

2,000

15,157

19,483

83,619

383,607

-

-

8,062,732

25,242,692

4,279,589

508,762

474,001

2,936

32,781

30,540,761

1,085,713

150,936

13,483

20,969

1,271,101

6,362,694

1,033,792

100,570

253,865

13,598

8,890

7,773,409

24,602,485

3,890,554

485,404

3,129

29,248,275

257,053

9,650

918,056

147,123

17,309

14,131

1,096,619

6,182,379

985,605

89,345

184,133

24,152

38,600

7,504,214

(Continued)

64

SCHEDULE 6

(Continued)


EDUCATIONAL ACCOUNT




2014

Original & Final

Budget Actual

2013

Actual


Instruction (Cont'd)

Special Education Programs-Pre-K


Total

CTE Programs

Salaries

Employee benefits

Purchased services



Total

Interscholastic Programs

Salaries

Employee benefits

Purchased services


Other objects

Total

Summer School

Salaries

Employee benefits


Total

Gifted Programs

Salaries

Employee benefits

Purchased services


Other objects

Total

$

620,361

798,303

59,736

80,227

18,310

28,100

36,631

149,186

127,043

3,217

3,217

8,229

1,119,392

433,988

237,642

2,674

186,176

426,492

114,522

28,993

11,470

2,098

2,098

159,181

$ 2,914

2,914

434,704

66,941

61,159

19,182

35,393

925,648

25,831

136,462

121,673

5,752

617,379

1,215,366

201,522

183

34,541

236,246

46,892

26,439

1,466

1,634

1,600

78,031

$ 2,967

2,967

393,788

63,151

79,740

19,063

29,945

859,910

25,403

133,286

145,079

6,278

585,687

1,169,956

215,641

178

152,604

368,423

40,168

24,060

2,794

231

800

68,053

(Continued)

65

SCHEDULE 6

(Continued)


EDUCATIONAL ACCOUNT




2014

Original & Final

Budget Actual

2013

Actual


Instruction (Cont'd)

Driver's Education Programs

Salaries

Employee benefits

Purchased services


Capital outlay

Total

Bilingual Programs

Salaries

Employee benefits

Purchased services


Total

Total Instruction

Support Services

Pupils

Attendance and social work services

Salaries

Employee benefits

Purchased services


Other objects

Total

Guidance Services

Salaries

Employee benefits

Purchased services


Total

Health services

Salaries

Employee benefits

Purchased services



Total

$

441,185

79,845

20,330

500

43,056,450

985,730

141,871

524

1,141,534

153,454

541,860

703,297

794,044

1,397,606

166,397

82,328

99,243

8,629

3,452

11,930

30,200

6,833

6,576

82,285

3,728

4,734

27,549

-

1,673,880

$ 85,379

8,549

1,551

8,250

30,398

134,127

339,987

80,072

20,880

3,621

444,560

42,313,894

946,250

150,840

1,110,234

609,448

706,482

1,236,727

150,061

172,161

89,745

66,406

6,654

6,272

218

3,728

3,561

2,933

1,628,288

$

390,711

76,269

3,232

10,780

480,992

40,637,732

90,959

8,208

3,908

9,471

-

112,546

937,320

145,316

13,159

6,213

12

1,102,020

673,455

88,674

3,728

3,347

769,204

1,332,316

143,614

155,183

26,300

3,682

1,661,095

(Continued)

66

SCHEDULE 6

(Continued)


EDUCATIONAL ACCOUNT




2014

Original & Final

Budget Actual

2013

Actual



Pupils (Cont'd)

Psychological Services

Salaries

Employee benefits

Purchased services


Total

Speech Pathology and Audiology Services

Salaries

Employee benefits

Purchased services


Total

Other Support Services

Salaries

Employee benefits

Purchased services

Total

Total Pupils

Instructional Staff

Improvement of Instruction Services

Salaries

Employee benefits

Purchased services


Other objects


Total

Educational Media Services

Salaries

Employee benefits

Purchased services


Capital outlay


Total

$ 673,715

788,060

82,695

23,650

6,380,180

79,479

277,865

1,266,354

1,076,611

136,947

16,880

112,931

8,000

1,209,411

124,119

26,638

4,000

1,364,168

602,549

3,443

12,502

618,494

411,006

496,504

1,500

-

-

7,000

1,350,369

$

1,171,883

1,354,009

6,071,827

690,875

443,849

91,582

37,499

15,589

9,009

828,965

139,199

38,503

4,424

428,260

-

369,394

89,873

154,313

684,206

1,757

-

1,299,543

1,029,095

135,910

18,727

100,190

5,370

18,625

1,307,917

$ 666,409

87,325

39,542

7,771

801,047

1,195,277

3,619

1,409,901

434,603

6,192,530

134,861

76,144

-

14,660

449,263

417,075

85,828

169,834

1,229,531

1,185

15,789

1,919,242

1,055,004

130,122

11,021

105,795

-

31,354

1,333,296

(Continued)

67

SCHEDULE 6

(Continued)


EDUCATIONAL ACCOUNT




2014

Original & Final

Budget Actual

2013

Actual



Instructional Staff (Cont'd)

Assessment and Testing

Purchased services


Total

Total Instructional Staff

General Administration

Board of Education Services

Employee benefits

Purchased services


Other objects

Total

Executive Administration Services

Salaries

Employee benefits

Purchased services


Other objects

Total

Special Area Administration Services


Total

$ 280,000

-

280,000

2,896,723

125,000

586,589

4,662

33,147

749,398

559,881

108,624

14,499

6,626

9,598

699,228

4,000

4,000

$ 272,114

1,403

273,517

2,880,977

122,555

395,027

3,919

35,043

556,544

561,451

107,677

9,925

933

8,362

688,348

2,441

2,441

-

-

$ 205,413

-

205,413

3,457,951

68,238

548,525

3,164

40,290

660,217

552,426

103,588

10,276

2,528

15,990

684,808

Total General Administration

School Administration

Office of the Principal Services

Salaries

Employee benefits

Purchased services


Capital outlay

Other objects


Total

Total School Administration

1,452,626

2,797,905

658,029

19,940

241,365

300

5,119

-

3,722,658

3,722,658

1,247,333

2,718,512

632,700

239,855

17,042

18,200

4,728

5,997

3,637,034

3,637,034

1,345,025

2,643,621

616,723

19,346

253,748

-

3,329

1,086

3,537,853

3,537,853

(Continued)

68

SCHEDULE 6

(Continued)


EDUCATIONAL ACCOUNT




2014

Original & Final

Budget Actual

2013

Actual



Business

Direction of Business Support Services

Salaries

Employee benefits

Purchased services

Total

Fiscal Services

Salaries

Employee benefits

Purchased services


Other objects

Total

Operation and Maintenance of Plant Services

Salaries


Total


Purchased services


Total

Food Services

Salaries

Employee benefits

Purchased services


Capital outlay

Other objects


Total

Total Business

$ 140,563

805

168,637

349,627

804,338

156,625

1,624,798

27,269

61,002

380,401

12,000

2,622

805,652

66,324

19,500

4,088

-

-

-

14,641

2,720

17,361

-

2,675,673

3,667,323

$ 140,337

25,153

805

297,154

54,555

360,253

11,528

3,316

166,295

726,806

5,536

-

5,536

13,870

2,720

16,590

766,734

141,056

71,030

1,530,335

44,878

3,294

8,861

2,566,188

3,481,415

$ 134,204

24,192

805

341,259

52,217

376,419

4,615

2,817

159,201

777,327

-

12,124

12,124

13,010

2,803

15,813

724,726

134,498

40,284

1,551,433

15,146

4,246

2,086

2,472,419

3,436,884

(Continued)

69

SCHEDULE 6

(Continued)


EDUCATIONAL ACCOUNT




2014

Original & Final

Budget Actual

2013

Actual



Central

Information Services

Salaries

Employee benefits

Purchased services


Total

$ 33,135

10,725

98,193

755

142,808

$ 33,235

9,591

76,313

534

119,673

$ 32,483

9,180

77,805

462

119,930

Staff Services

Salaries

Employee benefits

Purchased services


Other objects


Total

332,673

72,065

15,111

10,373

500

-

430,722

325,534

67,983

14,707

7,230

588

-

416,042

259,536

65,237

11,528

7,690

496

525

345,012

Data Processing Services

Salaries

Employee benefits

Purchased services


Capital outlay

Other objects

Total

Total Central

Other Supporting Services

Purchased services


Total


Community Services

Purchased services


Total Community Services

739,876

78,798

518,212

2,269,850

-

1,500

3,608,236

4,181,766

56,781

10,488

67,269

22,368,545

1,757

2,400

4,157

85,399

884,786

689,632

2,793,221

4,456,823

4,992,538

3,785

1,400

-

-

22,906

22,906

22,334,030

621

2,021

544,928

429,886

1,273,024

69,872

42,325

2,361,075

2,826,017

1,040

4,000

36,967

40,967

20,837,227

3,404

787

4,191

(Continued)

70

SCHEDULE 6

(Concluded)


EDUCATIONAL ACCOUNT






Payments for Special Education Programs

Purchased services

Other objects

Total

Payments for Regular Programs - Tuition

Other objects

Total

Payments for Special Education Programs - Tuition

Other objects

Total

Total Payments to Other Districts and Gov't Units

State On-behalf Expenditure

Total Expenditures



Capital leases

Transfers out





2014

Original & Final

Budget

$ 275,302

650,100

Actual

$ 178,653

565,404

925,402

16,707

16,707

744,057

25,776

25,776

2013

Actual

$ 359,937

686,053

1,045,990

18,427

18,427

1,850,000

1,850,000

2,792,109

13,762,888

81,984,149

(1,859,506)

-

-

-

$ (1,859,506)

1,964,954

1,964,954

2,734,787

14,701,527

82,086,259

21,665

-

(52,696)

(52,696)

(31,031)

19,060,863

$ 19,029,832

11,336,112

75,752,500

1,872,821

1,872,821

2,937,238

1,289,178

42,325

(796,922)

(754,597)

534,581

18,526,282

$ 19,060,863

71

SCHEDULE 7


WORKING CASH ACCOUNT




2014

Original & Final

Budget Actual

2013

Actual

Revenues

Local Sources

General levy

Interest income

Total Local Sources

Total Revenues

Expenditures

Total Expenditures




$ 329,245

5,000

334,245

334,245

-

-

$ 334,245

$ 332,113

2,367

334,480

334,480

-

-

334,480

$

2,054,410

2,388,890

$ 320,736

324,453

324,453

-

324,453

$

3,717

-

1,729,957

2,054,410

72

SCHEDULE 8


DEBT SERVICE FUND




2014

Original & Final

Budget Actual

2013

Actual

Revenues

Local Sources

General levy

Interest income

Total Local Sources

Total Revenues

Expenditures

Debt service

Interest

Principal

Other

Total Debt Service

Total Expenditures

(Deficiency) of Revenues Over Expenditures


Bonds issued


Transfers in


Total Other Financing Sources




$

12,606,577

12,606,577

(4,356,800)

$

8,233,593

16,184

8,249,777

8,249,777

911,577

11,675,000

20,000

-

-

1,573,369

-

1,573,369

(2,783,431)

$

12,070,346

13,757,022

13,757,022

(5,484,139)

46,760,000

1,485,621

1,782,643

(47,699,651)

2,328,613

(3,155,526)

$

8,267,585

5,298

8,272,883

8,272,883

1,141,599

545,077

7,973,862

4,818,336

$ 8,859,914

16,599

8,876,513

8,876,513

1,200,229

11,285,860

6,040

12,492,129

12,492,129

(3,615,616)

-

-

1,345,628

-

1,345,628

(2,269,988)

10,243,850

$ 7,973,862

73

SCHEDULE 9


CAPITAL PROJECTS FUND




2014

Original & Final

Budget Actual

2013

Actual

Revenues

Local Sources

Interest income


Refund of prior years' expenditures

Total Local Sources

State Sources

Other state sources

Total State Sources

Total Revenues

Expenditures

Support Services

Business

Facilities Acquisition and Construction Services

Salaries

Employee benefits

Purchased services


Capital outlay

Total

Other Support Services

Purchased services

Total

Total Business


Total Expenditures


Other Financing (Uses)

Transfers out



$ 42,000

500,000

542,000

-

-

-

542,000

-

-

3,641,000

3,641,000

$

-

-

300,000

300,000

3,941,000

3,941,000

3,941,000

(3,399,000)

(1,573,369)

(1,573,369)

(4,972,369)

$ 38,663

734,458

-

773,121

-

-

773,121

7,567

(1,182)

1,646,473

1,687

4,853,895

6,508,440

-

-

6,508,440

6,508,440

6,508,440

(5,735,319)

(1,157,275)

(1,157,275)

(6,892,594)

$

39,417,589

39,417,589

39,826,521

-

-

-

-

259,374

259,374

259,374

39,567,147

68,933

39,999

300,000

408,932

259,374

-

-

259,374

(394,978)

(394,978)

39,172,169



39,293,895

$ 32,401,301

121,726

$ 39,293,895

74

SCHEDULE 10


FIRE PREVENTION AND LIFE SAFETY FUND




Revenues

Local Sources

Interest income

Total Local Sources

Total Revenues

Expenditures

Total Expenditures




2014

Original & Final

Budget Actual

2013

Actual

$ 300

300

300

$ 32

32

32

$ 60

60

60

$

-

300

$

-

32

29,959

29,991 $

-

60

29,899

29,959

75

SCHEDULE 11

District / HS Alumni

Interest

District Pepsi Account

Locks

Food Service

District Recycling

Deicke Memorial

Freeberg Memorial

Student Insurance

Parent Workshop

Foundation Grants

Schaffenegger Memorial

Star Lab

O & M Pop Fund

Gerber

Gifted Program

Vision Team

Mackeben Photo

Mackeben Pop

Mackeben Recycling

Mackeben Art

Mackeben Reading

Mackeben Field Trips

Mackeben Library

Mackeben Market Day

Mackeben In & Out

Heineman LRC

Heineman Photo

Heineman Drama

Heineman Yearbook

Heineman Celebration Night

Heineman BETA (Service Club)

Heineman Chorus/Band

Heineman Wrestling

Heineman Cheerleading

Heineman Track

Heineman Visions

Heineman Cross Country

Heineman Volleyball

Heineman PE

Heineman Student Council

Heineman Music Camp

Heineman Pom Poms

Heineman Girls Basketball

Heineman Outdoor Activity

Heineman Athletics

CONSOLIDATED UNIT SCHOOL DISTRICT 158

AGENCY FUND

SCHEDULE OF CHANGES IN ASSETS AND LIABILITIES


BALANCE

JUNE 30, 2013

$ 7,780

4,494

6,130

1,412

2,951

630

64

30

400

154

5,229

34,500

2,331

1,839

369

91,107

1,714

10,379

809

3,344

3,258

223

3,622

7,477

2,008

859

3,637

4,714

1,450

4,840

817

560

20,156

579

139

2,206

1,709

591

231

6,777

2,426

263

65

185

929

5,054

ADDITIONS

$ 4,822

1,045

3,417

-

1,504

810

-

-

-

-

8,224

-

-

443

-

84,567

-

1,953

971

-

2,517

-

4,094

7,510

1,750

5,733

907

9,136

1,282

7,649

-

1,127

92,877

2,481

2,075

4,853

-

-

852

7,253

5,514

-

-

531

63,502

10,844

DELETIONS

$ 10,957

2,015

7,005

1,412

729

256

-

-

-

-

10,215

500

-

485

-

98,956

-

8,808

645

-

381

-

4,248

7,490

1,972

5,524

2,551

10,105

1,173

7,193

-

1,687

91,292

2,383

1,055

5,429

30

100

939

4,643

6,565

263

65

489

63,658

14,691

BALANCE

JUNE 30, 2014

$ 1,645

3,524

2,542

-

3,726

1,184

64

30

400

154

3,238

34,000

2,331

1,797

369

76,718

1,714

3,524

1,135

3,344

5,394

223

3,468

7,497

1,786

1,068

1,993

3,745

1,559

5,296

817

-

21,741

677

1,159

1,630

1,679

491

144

9,387

1,375

-

-

227

773

1,207

(Continued)

76

SCHEDULE 11

(Continued)

Heineman Boys Basketball

Heineman Science

Heineman Tech Lab

Heineman Art Club

Heineman Performance Readings

Heineman In & Out

Heineman Foods Club

Heineman Gold Pgm

Heineman 6th Grade Magazine

Heineman 7th Grade Team 1




Conley Photo

Conley Pop

Conley Recycling

Conley PBIS

Conley Market Day

Conley Band

Conley Jean Fund

Conley Garden Club

Conley Field Trips

Conley Library

Conley Yearbook

Conley In & Out

Education Reimagined

Music Camps (District-wide)

Pre-K Fieldtrips

ESL

Preschool

Chesak Photo

Chesak Pop

Chesak Recycle

Chesak Yearbook

Chesak Sunshine

Chesak Field Trips

Chesak Library

Chesak Market Day

Chesak In & Out

Leggee Photo

Leggee Pop

Leggee Recycle

Leggee Art


AGENCY FUND



BALANCE

JUNE 30, 2013

$ 2,708

847

628

1,257

216

143

2,666

521

557

7,263

-

2,545

-

5,843

1,286

447

695

2,436

45

317

289

5,230

3,775

3,550

3,746

65

293

150

27

8,211

4,886

413

920

1,241

6,067

1,692

1,071

3,184

748

2,373

604

4,651

307

ADDITIONS

$ 2,940

825

1,470

50

-

1,023

990

91

-

9,055

8,265

23,347

29,636

6,118

1,100

48

-

706

1,330

156

-

9,648

16,152

7,005

12,137

-

-

5,245

2,223

2,710

2,948

739

-

8,254

5,589

4,121

7,616

1,567

11,219

6,386

1,633

-

3,414

DELETIONS

$ 2,669

1,026

1,376

419

216

503

1,105

520

557

12,212

4,633

18,221

21,611

4,094

1,551

68

173

2,604

1,246

-

-

8,931

15,631

5,944

4,703

-

-

-

81

6,750

5,095

253

626

8,402

6,881

3,767

2,852

3,258

5,313

7,667

1,849

3,288

3,667

BALANCE

JUNE 30, 2014

$ 2,979

646

722

888

-

663

2,551

92

-

4,106

3,632

7,671

8,025

7,867

835

427

522

538

129

473

289

5,947

4,296

4,611

11,180

65

293

5,395

2,169

4,171

2,739

899

294

1,093

4,775

2,046

5,835

1,493

6,654

1,092

388

1,363

54

(Continued)

77

SCHEDULE 11

(Continued)

Leggee Fundraisers

Leggee Donations & Grants

Leggee Music

Leggee Field Trips

Leggee Library

Leggee Recreation

Leggee Yearbook

Leggee In & Out

Marlowe LRC

Marlowe Photo

Marlowe Fundraiser Funds

Marlowe Yearbook

Marlowe Celebration Night

Marlowe Student Council

Marlowe Chorus/Band

Marlowe Wrestling

Marlowe Cheerleading

Marlowe Track

Marlowe Visions

Marlowe Cross Country

Marlowe Volleyball

Teagan Fundraising

Marlowe Academic Club

Marlowe Musical/Play

Marlowe Beta

Marlowe Girls Basketball

Marlowe Outdoor Activity

Marlowe Athletics

Marlowe Boys Basketball

Marlowe Science

Marlowe Tech Lab

Marlowe Art Class

Marlowe Ecology

Marlowe In & Out

Marlowe Foods Club

HS Digital Photography

HS Photo

HS Art

HS Yearbook/Newspaper

HS Girls Cross Country

HS Student Council

HS Chorus

HS Color Guards

HS Pop

HS Math Club


AGENCY FUND



BALANCE

JUNE 30, 2013

$ 1,491

5,250

-

433

8,111

-

4,261

16,376

1,518

6,517

1,159

13,962

1,964

1,786

22,587

1,149

887

50

419

177

218

-

129

18,698

190

435

5,662

7,240

5,235

1,246

120

-

844

11,487

625

339

7,905

9,304

25,935

274

7,022

2,099

(0)

-

40

ADDITIONS

$ -

9,219

2,826

8,548

14,943

5,066

2,996

32,058

1,821

1,425

7,175

5,901

40

1,174

93,565

4,999

1,557

7,646

744

1,637

-

26,285

-

19,516

261

5,174

84,100

7,377

8,577

5,094

-

1,896

71

105,566

230

1,219

10,584

12,468

66,067

594

45,629

468

3,805

2,312

1,188

DELETIONS

$ 348

8,585

2,769

8,553

18,919

4,216

6,868

48,434

2,545

950

8,334

2,694

-

1,570

93,889

4,256

2,189

7,601

1,035

1,413

109

3,632

-

24,256

284

2,214

89,667

6,882

4,452

-

-

1,845

268

95,076

387

567

9,813

14,292

49,650

555

41,304

1,876

2,969

2,312

911

BALANCE

JUNE 30, 2014

$ 1,143

5,884

57

428

4,135

850

389

-

794

6,992

-

17,169

2,004

1,390

22,263

1,892

255

95

128

401

109

22,653

129

13,958

167

3,395

95

7,735

9,360

6,340

120

51

647

21,977

468

991

8,676

7,480

42,352

313

11,347

691

836

-

317

(Continued)

78

SCHEDULE 11

(Continued)


AGENCY FUND



HS Girls Golf

HS Drama Club

HS Pom Pons

Ski Club

Spanish Club

HS Boys Track

HS Dean Activity

FFA

NHS

Co-Op

Musical

Athletic Varsity / HS Athletic Improvements

Volleyball Tournament

High School Golf

Softball

Baseball

Girls Basketball

Boys Basketball

HS Cheerleading

HS Wrestling

HS Cross Country

School Store

Musgrave Scholarship

HS Speech

HS Academic Team

HS Journalism

HS Soccer

HS Field Trips

HS Football

HS Music Trips

HS In & Out

HS Tech/Ind Arts

HS PE

HS Track

HS Music

HS Tennis

Harmony Road Media

HS French

Video Tech

ACT Prep

Community Service Club

HS Dance Club

HS Recycling

Art Club

Guitar Club

BALANCE

JUNE 30, 2013

$ 2,836

3,533

1,120

2,100

1,948

3,901

5,085

534

438

8,687

7,364

3,510

4,431

987

3,421

7,572

7,314

7,147

14,959

2,325

5,293

4,833

119

3,528

732

-

5,836

8,276

9,393

27,292

4,234

-

8,621

991

1,204

2,610

1,576

70

59

17,456

4,020

9,936

196

110

873

ADDITIONS

$ 3,033

8,479

54,436

10,675

-

2,000

7,198

-

310

3,305

14,825

57,377

21,785

5,347

8,827

18,612

28,255

29,411

100,224

10,353

4,202

40,224

-

15,865

240

33,147

46,347

18,734

119,637

5,358

1,276

9,249

21,884

4,073

2,319

4,895

867

-

641

117,204

-

4,428

124

-

4,651

DELETIONS

$ 4,082

8,059

41,248

10,547

34

4,169

4,406

534

-

3,713

7,282

60,544

20,420

4,883

8,772

19,539

28,180

28,986

84,081

6,179

5,091

28,483

-

15,764

429

27,251

47,425

21,954

123,620

4,404

3,377

9,249

19,101

2,651

3,523

4,657

593

-

20

132,819

-

3,595

-

30

4,652

BALANCE

JUNE 30, 2014

$ 1,787

3,953

14,308

2,228

1,914

1,732

7,877

-

748

8,279

14,907

343

5,796

1,451

3,476

6,645

7,389

7,572

31,102

6,499

4,404

16,574

119

3,629

543

5,896

4,758

5,056

5,410

28,246

2,133

-

11,404

2,413

-

2,848

1,850

70

680

1,841

4,020

10,769

320

80

872

(Continued)

79

SCHEDULE 11

(Concluded)

HS Band (Fundraising)

HS Baking Club

HS Fashion Club

HS Social Studies Trips

PBIS Raider Way

HS Bowling

HS Swimming

HS Fishing Club

HS Science Club

HS Psychology Club

HS Horticulture Club

HS English Book Club

HS Medical Academy

HS Operation Click

HS Graduation Ceremony

Class of 2013

Class of 2014 Seniors

Class of 2015 Juniors

Class of 2016 Sophomores

Class of 2017 Freshmen

Class of 2018 8th Grade

Class of 2019 7th Grade

Martin Photo

Martin Pop

Martin Recycling

Martin Band

Martin Field Trips

Martin Library

Previous Martin Market Day

Martin Yearbook

Martin In & Out

Grand Total


AGENCY FUND



BALANCE

JUNE 30, 2013

$ 5,258

344

65

78

564

344

31

484

927

1,755

870

6,916

229

300

-

-

7,360

5,056

607

603

73

-

12,617

2,903

1,357

1,052

2,311

2,904

5,397

5,491

3,810

$ 803,674.00

$

ADDITIONS

$ 11,330

345

1,399

1,397

594

748

6,378

1,533

6,217

-

150

10,099

2,702

1,500

18,475

184

-

80,690

1,352

3,007

-

-

12,662

2,872

40

2,423

18,975

23,130

3,265

8,464

1,806

2,209,374.00

$ 2,143,317.00

DELETIONS

$ 11,526

565

1,373

950

358

617

6,230

2,017

4,180

25

-

16,531

2,511

1,257

18,451

184

7,360

74,671

832

1,717

-

-

6,406

1,144

-

2,226

18,747

22,241

-

7,395

5,297

BALANCE

JUNE 30, 2014

$ 5,062

124

91

525

800

475

179

-

2,964

1,730

1,020

484

420

543

24

-

-

11,075

1,127

1,893

73

-

18,873

4,631

1,397

1,249

2,539

3,793

8,662

6,560

319

$ 869,731.00

80

SCHEDULE 12


DEBT SERVICE SCHEDULE - 2005 GENERAL OBLIGATION REFUNDING BONDS

JUNE 30, 2014

YEAR ENDING JUNE 30,

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

TOTAL

PRINCIPAL

$ -

-

-

-

-

-

-

-

-

-

6,555,000

$ 6,555,000

INTEREST

$ 327,750

327,750

327,750

327,750

327,750

327,750

327,750

327,750

327,750

327,750

327,750

$ 3,605,250

TOTAL

$ 327,750

327,750

327,750

327,750

327,750

327,750

327,750

327,750

327,750

327,750

6,882,750

$ 10,160,250

Amount of Original Issue $6,555,000

Date of Issue

Paying Agent

Principal Payment Date

December 15, 2005

Harris Bank

January 1

Interest Payment Date

Interest Rates

January 1 and July 1

5.00%

81


DEBT SERVICE SCHEDULE - 2006B GENERAL OBLIGATION BONDS

JUNE 30, 2014

SCHEDULE 13


2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

TOTAL

PRINCIPAL

$ 165,000

170,000

360,000

375,000

395,000

220,000

225,000

235,000

245,000

260,000

270,000

280,000

$ 3,200,000

INTEREST

$ 133,115

126,515

119,970

105,750

90,750

74,752

65,623

56,172

46,185

35,650

24,340

12,460

$ 891,282

TOTAL

$ 298,115

296,515

479,970

480,750

485,750

294,752

290,623

291,172

291,185

295,650

294,340

292,460

$ 4,091,282

Amount of Original Issue

Date of Issue

Paying Agent



Interest Rates

$8,740,000

March 1, 2006

Harris Bank

January 1


3.50% to 4.45%

82

SCHEDULE 14


DEBT SERVICE SCHEDULE - 2000 CAPITAL APPRECIATION SCHOOL BUILDING BONDS

JUNE 30, 2014


2015

2016

2017

2018

2019

2020

TOTAL

ORIGINAL

PRINCIPAL

$ -

-

-

-

-

18,892

$ 18,892

ACCRETION

TO DATE

$ -

-

-

-

-

37,702

$ 37,702

CURRENTLY

PAYABLE

$ -

-

-

-

-

56,594

$ 56,594

FUTURE

ACCRETION

$ -

-

-

-

-

43,406

$ 43,406

TOTAL

$ -

-

-

-

-

100,000

$ 100,000


Date of Issue

Paying Agent

December 1, 2000

LaSalle Bank



Interest Rates

January 1

January 1

None

83

SCHEDULE 15



JUNE 30, 2014


2015

2016

TOTAL

ORIGINAL

PRINCIPAL

$ -

826,529

$ 826,529

ACCRETION

TO DATE

$ -

1,612,765

$ 1,612,765

CURRENTLY

PAYABLE

$ -

2,439,294

$ 2,439,294

FUTURE

ACCRETION

$ -

460,706

$ 460,706

TOTAL

$ -

2,900,000

$ 2,900,000


Date of Issue

Paying Agent

December 1, 2001

LaSalle Bank



Interest Rates

January 1

January 1

None

84

SCHEDULE 16



JUNE 30, 2014


2015

2016

2017

2018

2019

2020

2021

2022

2023

TOTAL

ORIGINAL

PRINCIPAL

$ -

-

-

1,440,877

1,571,004

1,534,402

3,525,630

3,408,114

1,279,108

$ 12,759,135

ACCRETION

TO DATE

$ -

-

-

2,310,588

2,517,888

2,460,544

5,653,860

5,464,971

2,051,236

$ 20,459,087

CURRENTLY

PAYABLE

-

-

3,751,465

4,088,892

3,994,946

9,179,490

8,873,085

3,330,344

$ 33,218,222

FUTURE

ACCRETION

-

-

1,583,535

2,261,108

2,780,054

7,820,510

9,071,915

4,024,656

$ 27,541,778

TOTAL

$ -

-

-

5,335,000

6,350,000

6,775,000

17,000,000

17,945,000

7,355,000

$ 60,760,000


Date of Issue December 1, 2003

Paying Agent


LaSalle Bank

January 1


Interest Rates

January 1

None

85

SCHEDULE 17


DEBT SERVICE SCHEDULE - 2003A CAPITAL APPRECIATION SCHOOL BUILDING BONDS

JUNE 30, 2014


2015

2016

2017

2018

2019

2020

2021

2022

2023

TOTAL

ORIGINAL

PRINCIPAL

$ 1,398,980

662,978

1,527,636

-

-

-

-

-

1,917,316

$ 5,506,910

ACCRETION

TO DATE

$ 2,131,121

1,009,949

2,327,172

-

-

-

-

-

2,920,852

$ 8,389,094

CURRENTLY

PAYABLE

$ 3,530,101

1,672,927

3,854,808

-

-

-

-

-

4,838,168

$ 13,896,004

FUTURE

ACCRETION

$ 324,899

322,073

1,165,192

-

-

-

-

-

5,846,832

$ 7,658,996

TOTAL

$ 3,855,000

1,995,000

5,020,000

-

-

-

-

-

10,685,000

$ 21,555,000


Date of Issue December 1, 2003

Paying Agent


LaSalle Bank

January 1


Interest Rates

January 1

None

86

SCHEDULE 18



JUNE 30, 2014


2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

TOTAL

ORIGINAL

PRINCIPAL

$ -

-

-

-

-

-

-

-

291,265

3,641,064

$ 3,932,329

ACCRETION

TO DATE

$ -

-

-

-

-

-

-

-

413,770

5,172,340

$ 5,586,110

CURRENTLY

PAYABLE

$ -

-

-

-

-

-

-

-

705,035

8,813,404

$ 9,518,439

FUTURE

ACCRETION

$ -

-

-

-

-

-

-

-

784,965

11,526,596

$ 12,311,561

TOTAL

$ -

-

-

-

-

-

-

-

1,490,000

20,340,000

$ 21,830,000


Date of Issue

Paying Agent



Interest Rates

$25,000,000

December 1, 2004

Harris Bank

January 1

January 1

None

87

SCHEDULE 19


DEBT SERVICE SCHEDULE - 2008 REFUNDING BONDS

JUNE 30, 2014


2015

2016

2017

2018

TOTAL


Date of Issue

Paying Agent



Interest Rates

$5,150,000

February 1, 2008

Bank of New York Trust Co.

February 1

February 1 and August 1

3.0% to 3.9%

PRINCIPAL

$ 585,000

610,000

635,000

660,000

$ 2,490,000

INTEREST

$ 93,744

72,625

49,934

25,740

$ 242,043

TOTAL

$ 678,744

682,625

684,934

685,740

$ 2,732,043

88

SCHEDULE 20


2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

TOTAL


Date of Issue

Paying Agent



Interest Rates


DEBT SERVICE SCHEDULE - 2009 REFUNDING BONDS

JUNE 30, 2014

PRINCIPAL

$ -

-

-

-

-

575,000

600,000

620,000

650,000

675,000

705,000

$ 3,825,000

INTEREST

$ 165,519

165,519

165,519

165,519

165,519

165,519

142,519

117,769

91,419

62,981

32,606

$ 1,440,406

TOTAL

$ 165,519

165,519

165,519

165,519

165,519

740,519

742,519

737,769

741,419

737,981

737,606

$ 5,265,406

$3,825,000

November 1, 2009

Harris Bank

January 1


4.000% to 4.625%

89


2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

TOTAL


Date of Issue

Paying Agent



Interest Rates

SCHEDULE 21



JUNE 30, 2014

PRINCIPAL

$ -

-

-

-

-

-

-

-

-

-

-

6,095,000

$ 6,095,000

INTEREST

$ 274,275

274,275

274,275

274,275

274,275

274,275

274,275

274,275

274,275

274,275

274,275

274,275

$ 3,291,300

TOTAL

$ 274,275

274,275

274,275

274,275

274,275

274,275

274,275

274,275

274,275

274,275

274,275

6,369,275

$ 9,386,300

$6,095,000

December 28, 2010

Bank of New York Mellon

January 1

January and July 1

4.50%

90

SCHEDULE 22


DEBT SERVICE SCHEDULE - 2011A QUALIFIED ENERGY CONSERVATION DEBT CERTIFICATES

JUNE 30, 2014


2015

2016

2017

2018

2019

2020

2021

TOTAL


Date of Issue

Paying Agent



Interest Rates

$1,500,000

September 30, 2011

BMO Harris Bank

January 1


1.000% to 4.250%

PRINCIPAL

$ 150,000

150,000

150,000

150,000

150,000

150,000

155,000

$ 1,055,000

INTEREST

$ 36,588

32,837

28,338

23,462

18,213

12,587

6,588

$ 158,613

TOTAL

$ 186,588

182,837

178,338

173,462

168,213

162,587

161,588

$ 1,213,613

91


DEBT SERVICE SCHEDULE - 2011B REFUNDING DEBT CERTIFICATES

JUNE 30, 2014

SCHEDULE 23


2015

2016

2017

2018

2019

2020

2021

2022

TOTAL


Date of Issue

Paying Agent



Interest Rates

$2,060,000

September 30, 2011

BMO Harris Bank

January 1


2.000% to 3.250%

PRINCIPAL

$ 200,000

200,000

200,000

200,000

215,000

225,000

230,000

230,000

$ 1,700,000

INTEREST

$ 46,575

42,575

38,179

33,075

27,575

21,125

14,414

7,475

$ 230,993

TOTAL

$ 246,575

242,575

238,179

233,075

242,575

246,125

244,414

237,475

$ 1,930,993

92

SCHEDULE 24



JUNE 30, 2014


2023

2024

2025

2026

2027

2028

2029

2015

2016

2017

2018

2019

2020

2021

2022

2030

2031

2032

2033

TOTAL


Date of Issue

Paying Agent



Interest Rates

$46,760,000

September 30, 2013

BMO Harris Bank

January 15


5.000% - 5.625%

PRINCIPAL

$ -

-

-

-

-

-

-

-

-

-

-

-

-

-

4,000,000

9,660,000

10,650,000

10,950,000

11,500,000

$ 46,760,000

INTEREST

$ 3,253,999

2,519,225

2,519,225

2,519,225

2,519,225

2,519,225

2,519,225

2,519,225

2,519,225

2,519,225

2,519,225

2,519,225

2,519,225

2,519,225

2,519,225

2,309,225

1,790,000

1,190,937

575,000

$ 44,388,311

TOTAL

$ 3,253,999

2,519,225

2,519,225

2,519,225

2,519,225

2,519,225

2,519,225

2,519,225

2,519,225

2,519,225

2,519,225

2,519,225

2,519,225

2,519,225

6,519,225

11,969,225

12,440,000

12,140,937

12,075,000

$ 91,148,311

93

REVENUES

Property taxes


Interest income


Other local sources

State sources

Federal sources

State On-behalf revenue

Total Revenues

EXPENDITURES

Current:

Instruction:

Regular programs

Regular programs - Pre-K

Special programs

Special programs - Pre-K


Support Services:

Pupils

Instructional staff



Business

Transportation


Central


Community Services:


Debt Service:

Principal

Interest and other

Capital outlay

State On-behalf revenue

Total Expenditures



OPERATING AND NON-OPERATING

GOVERNMENTAL FUNDS


WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2013

OPERATING FUNDS

General Fund

Educational

Account

Working

Cash Account

Operations and Municipal

Maintenance Transportation Retirement/Social

Fund Fund Security Fund

$ 41,412,557 $ 6,637,991 $ 4,062,222 $ 2,392,628

347,641

20,812

330,022

4,699,073

17,449,752

3,146,540

14,701,527

82,107,924

-

2,367

-

-

-

-

-

334,480

-

1,459

-

344,119

750,000

-

-

7,733,569

-

6,164

-

87,057

2,806,889

-

-

6,962,332

123,564

1,016

-

-

-

-

-

2,517,208

30,540,761

1,271,101

7,759,811

2,695,311

6,071,827

2,875,607

1,247,333

3,618,834

3,436,537

-

-

4,992,538

22,906

2,914

2,021

2,734,787

-

-

112,444

14,701,527

82,086,259

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

6,384,493

-

-

-

-

-

-

692,480

-

7,076,973

-

-

-

-

-

-

-

-

-

-

4,903,413

-

-

-

-

-

126,326

13,086

277,233

-

5,320,058

309,981

76,163

361,685

-

22,236

245,507

124,007

39,441

162,608

829,906

-

-

153,276

-

-

-

-

-

-

-

2,324,810

94 95

OPERATING FUNDS

SCHEDULE 25

30,850,742

1,347,264

8,121,496

2,914

2,717,547

6,317,334

2,999,614

1,286,774

3,781,442

4,266,443

4,903,413

6,384,493

5,145,814

22,906

2,021

2,734,787

126,326

13,086

1,082,157

14,701,527

96,808,100

Total

Operating

Funds

$ 54,837,511

471,205

31,818

330,022

5,130,249

21,006,641

3,146,540

14,701,527

99,655,513

Debt

Service

Fund

NON-OPERATING FUNDS

Capital

Projects

Find

Fire

Prevention and Life

Safety Fund

$ 8,267,585 $ $ -

-

5,298

-

-

-

-

-

8,272,883

-

38,663

734,458

-

-

-

-

773,121

-

32

-

-

-

-

-

32

2014

$ 63,105,096

Total

2013

$ 61,712,742

471,205

75,811

1,064,480

5,130,249

21,006,641

3,146,540

14,701,527

108,701,549

465,793

141,304

961,519

5,230,412

60,442,262

3,106,559

11,336,112

143,396,703

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

12,070,346

1,686,676

-

-

13,757,022

-

-

-

-

-

-

-

-

-

1,654,545

-

-

-

-

-

-

-

-

4,853,895

-

6,508,440

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

30,850,742

1,347,264

8,121,496

2,914

2,717,547

6,317,334

2,999,614

1,286,774

3,781,442

5,920,988

4,903,413

6,384,493

5,145,814

22,906

2,021

2,734,787

12,196,672

1,699,762

5,936,052

14,701,527

117,073,562

29,721,463

1,159,571

7,836,934

2,967

2,806,844

6,443,413

3,580,962

1,383,532

3,697,148

4,489,002

4,983,285

6,388,589

2,898,590

40,968

4,191

2,937,239

11,580,940

1,229,748

1,115,998

11,336,112

103,637,496

95

(Continued)



GOVERNMENTAL FUNDS


WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2013

OPERATING FUNDS

General Fund

Educational

Account

Working

Cash Account

Operations and Municipal

Maintenance Transportation Retirement/Social

Fund Fund Security Fund

Excess (Deficiency) of Revenues over Expenditures


Bonds issued


Capital leases

Transfers in

Transfers out


$ 21,665

-

-

-

-

(52,696)

-

-

-

-

-

-

-

Total Other Financing Sources (Uses) (52,696)


Fund Balance, Beginning of Year

Fund Balance, End of Year $

(31,031)

19,060,863

19,029,832 $

-

334,480

2,054,410

2,388,890

$ 656,596 $ 1,642,274

-

-

-

-

(572,672)

-

-

-

277,233

-

-

-

(572,672) 277,233

83,924

1,421,478

$ 1,505,402 $

1,919,507

5,623,395

7,542,902

$ 192,398

-

-

-

-

$

-

-

-

192,398

934,512

1,126,910

96 97

OPERATING FUNDS

Total

Operating

Funds

Debt

Service

Fund

NON-OPERATING FUNDS

Capital

Projects

Find

Fire

Prevention and Life

Safety Fund 2014

Total

2013

$ 2,847,413 $ (5,484,139) $ (5,735,319) $ 32 $ (8,372,013) $ 39,759,207

-

-

277,233

-

(625,368)

-

(348,135)

2,499,278

29,094,658

$ 31,593,936

46,760,000

1,485,621

-

1,782,643

-

(47,699,651)

2,328,613

(3,155,526)

7,973,862

$ 4,818,336

-

-

-

-

(1,157,275)

-

(1,157,275)

(6,892,594)

39,293,895

$ 32,401,301

-

-

-

-

-

-

-

32

29,959

$ 29,991

46,760,000

1,485,621

277,233

1,782,643

(1,782,643)

(47,699,651)

823,203

(7,548,810)

76,392,374

$ 68,843,564

42,325

-

-

-

-

-

42,325

39,801,532

36,590,842

$ 76,392,374

SCHEDULE 25

(Concluded)

97

ANNUAL FINANCIAL REPORT CONSOLIDATED SCHOOL DISTRICT NO. 158

ANNUAL FINANCIAL REPORT

CONSOLIDATED SCHOOL

DISTRICT NO. 158

ALGONQUIN, IL

JUNE 30, 2014

Evans, Marshall & Pease, P.C.

Overview of the Financial Statements

Management Discussion and Analysis

Government Wide Financial Statements

Fund Financial Statements

Fiscal Year 2014 District Highlights

Financial Highlights

Fiscal Year 2014 Government-Wide Financial Analysis

Fiscal Year 2014 Statement of Activities

Summary Statement of Activities

Financial Analysis of the District's Governmental Funds

Capital Asset and Debt Administration

Factors Bearing on the District's Future

Contacting the District's Financial Management

Basic Financial Statements

Related documents

Products

Support

ANNUAL FINANCIAL REPORT CONSOLIDATED SCHOOL DISTRICT NO. 158