EDER, CASELLA & CO.
A PROFESSIONAL CORPORATION
CERTIFIED PUBLIC ACCOUNTANTS
———
cpas@edercasella.com
www.edercasella.com
5400 West Elm Street, Suite 203
McHenry, Illinois 60050
Telephone: (815) 344-1300
Fax: (815) 344-1320
509 West Old Northwest Highway, Suite 102
Barrington, Illinois 60010
Telephone: (847) 382-3366
Fax: (847) 382-0608
LAKE ZURICH COMMUNITY UNIT
SCHOOL DISTRICT NO. 95
STATE OF ILLINOIS
ANNUAL FINANCIAL REPORT
JUNE 30, 2014
LAKE ZURICH COMMUNITY UNIT SCHOOL DISTRICT NO. 95
TABLE OF CONTENTS
JUNE 30, 2014
PAGE
INDEPENDENT AUDITOR’S OPINION
1
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER
MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING
STANDARDS
4
REQUIRED SUPPLEMENTARY INFORMATION
Management’s Discussion and Analysis
6
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements
Statement of Net Position
12
Statement of Activities
13
Fund Financial Statements
Balance Sheet – Governmental Funds
14
Reconciliation of the Balance Sheet to the Statement of
Net Position
15
Statement of Revenues, Expenditures, and Changes in
Fund Balances – Governmental Funds
16
Reconciliation of the Statement of Revenues, Expenditures,
and Changes in Fund Balances to the Statement of
Activities
18
Statement of Fiduciary Assets and Liabilities
19
Notes to Financial Statements
20
REQUIRED SUPPLEMENTARY INFORMATION
Illinois Municipal Retirement Fund – Schedule of Funding Progress
37
Schedule of Revenues, Expenditures, and Changes in Fund
Balances – Budget and Actual – General Fund
38
Schedule of Revenues, Expenditures, and Changes in Fund
Balances – Budget and Actual – Special Revenue Fund –
Operations and Maintenance Fund
44
LAKE ZURICH COMMUNITY UNIT SCHOOL DISTRICT NO. 95
TABLE OF CONTENTS
JUNE 30, 2014
PAGE
REQUIRED SUPPLEMENTARY INFORMATION (Continued)
Schedule of Revenues, Expenditures, and Changes in Fund
Balances – Budget and Actual – Special Revenue Fund –
Transportation Fund
45
Schedule of Revenues, Expenditures, and Changes in Fund
Balances – Budget and Actual – Special Revenue Fund –
Illinois Municipal Retirement/Social Security Fund
46
Notes to Required Supplementary Information
49
SUPPLEMENTAL FINANCIAL INFORMATION
Combining Balance Sheet – General Fund
50
Combining Schedule of Revenues, Expenditures, and Changes in
Fund Balances – General Fund
51
Schedule of Revenues, Expenditures, and Changes in Fund
Balances – Budget and Actual – General Fund – Educational
Fund
52
Schedule of Revenues, Expenditures, and Changes in Fund
Balances – Budget and Actual – General Fund – Working
Cash Fund
58
Schedule of Revenues, Expenditures, and Changes in Fund
Balances – Budget and Actual – Debt Services Fund
59
Schedule of Revenues, Expenditures, and Changes in Fund
Balances – Budget and Actual – Capital Projects Fund
60
Schedule of Changes in Fiduciary Assets and Liabilities – Activity
Funds
61
Computation of Operating Expense Per Pupil and Per Capita
Tuition Charge
64
ANNUAL FEDERAL FINANCIAL COMPLIANCE SECTION
Independent Auditor’s Report on Compliance for Each Major Program
and on Internal Control Over Compliance Required by OMB
Circular A-133
65
Schedule of Expenditures of Federal Awards
67
Notes to the Schedule of Expenditures of Federal Awards
70
LAKE ZURICH COMMUNITY UNIT SCHOOL DISTRICT NO. 95
TABLE OF CONTENTS
JUNE 30, 2014
PAGE
ANNUAL FEDERAL FINANCIAL COMPLIANCE SECTION (Continued)
Schedule of Findings and Questioned Costs
71
Summary Schedule of Prior Audit Findings
74
Corrective Action Plan for Current Year Audit Findings
75
EDER, CASELLA & CO.
A PROFESSIONAL CORPORATION
CERTIFIED PUBLIC ACCOUNTANTS
———
cpas@edercasella.com
www.edercasella.com
5400 West Elm Street, Suite 203
McHenry, Illinois 60050
Telephone: (815) 344-1300
Fax: (815) 344-1320
509 West Old Northwest Highway, Suite 102
Barrington, Illinois 60010
Telephone: (847) 382-3366
Fax: (847) 382-0608
INDEPENDENT AUDITOR’S OPINION
To the Board of Education
Lake Zurich Community Unit School District No. 95
Lake Zurich, Illinois
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, each major
fund, and the aggregate remaining fund information of
Lake Zurich Community Unit School District No. 95
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.
-1-
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, each major fund, and the aggregate
remaining fund information of Lake Zurich Community Unit School District No. 95 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
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis, Illinois Municipal Retirement Fund schedule of funding
progress, and budgetary comparison information on pages 6 through 11 and 37 through 49 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.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise Lake Zurich Community Unit School District No. 95’s basic financial statements.
The supplemental information as listed in the table of contents is presented for purposes of additional
analysis and is not a required part of the basic financial statements. The Schedule of Expenditures of
Federal Awards is presented for purposes of additional analysis as required by U.S. Office of
Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit
Organizations, and is also not a required part of the basic financial statements.
The supplemental information and the Schedule of Expenditures of Federal Awards are the
responsibility of management and were derived from and relate directly to the underlying accounting
and other records used to prepare the basic financial statements. Such information, except for the
average daily attendance figure included in the computation of operating expense per pupil and per
capita tuition charges, 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 supplemental information and the Schedule of Expenditures of Federal Awards are fairly stated in
all material respects in relation to the basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
September 25, 2014 on our consideration of Lake Zurich Community Unit School District No. 95’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
-2-
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 Lake Zurich Community Unit School District No. 95’s internal control
over financial reporting and compliance.
Change in Accounting Principle
As discussed in Note 19 to the financial statements, the District implemented GASB Statement No. 65,
Items Previously Reported as Assets and Liabilities. Our opinion is not modified with respect to this
matter.
EDER, CASELLA & CO.
Certified Public Accountants
McHenry, Illinois
September 25, 2014
-3-
EDER, CASELLA & CO.
A PROFESSIONAL CORPORATION
CERTIFIED PUBLIC ACCOUNTANTS
———
cpas@edercasella.com
www.edercasella.com
5400 West Elm Street, Suite 203
McHenry, Illinois 60050
Telephone: (815) 344-1300
Fax: (815) 344-1320
509 West Old Northwest Highway, Suite 102
Barrington, Illinois 60010
Telephone: (847) 382-3366
Fax: (847) 382-0608
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN
AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
To the Board of Education
Lake Zurich Community Unit School District No. 95
Lake Zurich, Illinois
We have audited, 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, the financial statements of the governmental
activities, each major fund, and the aggregate remaining fund information of
Lake Zurich Community Unit School District No. 95
as of and for the year ended June 30, 2014, and the related notes to the financial statements, which
collectively comprise Lake Zurich Community Unit School District No. 95’s basic financial statements,
and have issued our report thereon dated September 25, 2014.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered Lake Zurich Community
Unit School District No. 95’s internal control over financial reporting (internal control) to determine the
audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions
on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of
Lake Zurich Community Unit School District No. 95’s internal control. Accordingly, we do not express
an opinion on the effectiveness of Lake Zurich Community Unit School District No. 95’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a material
misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a
timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control
that is less severe than a material weakness, yet important enough to merit attention by those charged
with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses may exist that have not been identified.
-4-
Compliance and Other Matters
As part of obtaining reasonable assurance about whether Lake Zurich Community Unit School District
No. 95’s financial statements are free from material misstatement, we performed tests of its compliance
with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which
could have a direct and material effect on the determination of financial statement amounts. However,
providing an opinion on compliance with those provisions was not an objective of our audit, and
accordingly, we do not express such an opinion. The results of our tests disclosed no instances of
noncompliance or other matters that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
entity’s internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the entity’s internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
EDER, CASELLA & CO.
Certified Public Accountants
McHenry, Illinois
September 25, 2014
-5-
REQUIRED SUPPLEMENTARY INFORMATION
Lake Zurich Community Unit School District No. 95
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2014
The Management’s Discussion and Analysis of Lake Zurich Community Unit School District No. 95’s
(the District) financial performance provides an overall review of the District’s financial activities for the
year ended June 30, 2014. The management of the District encourages readers to consider the
information presented herein in conjunction with the basic financial statements to enhance their
understanding of the District’s financial performance.
Financial Highlights

The assets of the District exceeded its liabilities and deferred inflows of resources at
June 30, 2014 by $137,515,404 (net position).

The District’s total net position increased by $11,684,283. Substantially all of this increase
represents the degree to which increases in ongoing revenues exceeded similar increases in
ongoing expenses.

At June 30, 2014 the District’s governmental funds reported combined ending fund balances of
$61,180,181, an increase of $7,108,283 in comparison with the prior year.

At June 30, 2014 the unassigned fund balance for the General Fund was $34,090,937, or 46%
of total General Fund expenditures.

The District’s total long-term debt decreased by $4,997,575 during the year ended
June 30, 2014 due to scheduled repayments of long-term debt.
Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction to the District’s basic financial
statements. The District’s basic financial statements comprise three components: 1) government-wide
financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report
also contains other supplementary information in addition to the basic financial statements.
Government-Wide Financial Statements. The government-wide financial statements are designed to
provide readers with a broad overview of the District’s finances, in a manner similar to a private-sector
business.
The Statement of Net Position presents information on all of the District’s assets and deferred outflows
of resources, less its liabilities and deferred inflows of resources, with the difference reported as net
position. Over time, increases or decreases in net position may serve as a useful indicator of whether
the financial position of the District is improving or deteriorating.
The Statement of Activities presents information showing how the District’s net position changed during
the most recent fiscal year. All changes in net position are reported as soon as the underlying event
giving rise to the change occurs, regardless of the timing of the related cash flows. Thus, revenues and
expenses are reported in this statement for some items that will only result in cash flows in future fiscal
periods (e.g., uncollected taxes).
-6-
Both of the government-wide financial statements distinguish functions of the District that are principally
supported by taxes and intergovernmental revenues (governmental activities). Governmental activities
include instruction, support services, operations and maintenance, transportation, food services, and
certain other activities and expenses such as payments to other districts and governmental units and
interest and fees.
The government-wide financial statements can be found on pages 12 and 13 of this report.
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 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 (the
District maintains no proprietary funds).
Governmental funds. Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements. However, unlike the
government-wide financial statements, governmental fund financial statements focus on near-term
inflows and outflows of spendable resources, as well as on balances of spendable resources available
at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term
financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By
doing so, readers may better understand the long-term impact of the District’s near-term financing
decisions. Both the governmental fund Balance Sheet and the governmental fund Statement of
Revenues, Expenditures, and Changes in Fund Balances provide a reconciliation to facilitate this
comparison between governmental funds and governmental activities.
The District maintains six 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, Operations and Maintenance, Debt Services,
Transportation, Illinois Municipal Retirement/Social Security, and Capital Projects Funds, all of which
are considered to be major funds.
The District adopts an annual budget for each of the funds listed above. A budgetary comparison
statement, which is required supplementary information, has been provided for the General Fund and
each major special revenue fund to demonstrate compliance with this budget.
The basic fund financial statements can be found on pages 14 through 18 and the required
supplementary information can be found on pages 37 through 49 of this report.
Fiduciary Funds - Fiduciary funds are used to account for assets held for others, such as student
activity funds. Fiduciary funds are not reflected in the government-wide financial statements because
the assets of these funds are not available to support the District’s operations.
The basic fiduciary fund financial statement can be found on page 19 of this report.
Notes to the Financial Statements - The notes provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements. The notes to
the financial statements can be found on pages 20 through 36 of this report.
-7-
Other Information - In addition to the basic financial statements, accompanying notes, and required
supplementary information, this report also presents certain supplementary information concerning the
District’s progress in meeting its obligation to provide fully adequate educational services and
extracurricular activities to all of its resident’s students.
Supplemental financial information can be found on pages 50 through 64 of this report.
Government-Wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government’s financial
position. In the case of the District, assets and deferred outflows of resources exceeded liabilities and
deferred inflows of resources by $137,515,404 at the close of the most recent fiscal year.
The following table presents a summary of the District’s net position for the years ended June 30, 2014
and 2013:
Lake Zurich Community Unit School District No. 95's Net Position at Year-End
Governmental Activities
FY 2014
FY 2013
Assets
Current and Other Assets
Capital Assets
Total Assets
Liabilities
Other Liabilities
Long-Term Liabilities Outstanding
Total Liabilities
Deferred Inflows of Resources
Unavailable Revenue - Property Taxes
Total Deferred Inflows of Resources
$
$
$
105,389,679
120,026,755
225,416,434
$
$
$
98,193,195
120,605,673
218,798,868
$
6,481,916
43,652,724
50,134,640
$
6,436,561
48,785,420
55,221,981
$
$
37,766,390
37,766,390
$
$
37,042,446
37,042,446
$
95,749,947
24,782,823
16,982,634
$
89,615,188
23,089,724
13,829,529
$
137,515,404
$
126,534,441
Net Position
Net Investment in Capital Assets
Restricted
Unrestricted
Total Net Position
The net investment in capital assets represents assets such as land, buildings, and equipment less any
related debt used to acquire those assets that is still outstanding. The District uses its assets to provide
educational services and extracurricular activities for the students of the local community. Although the
District’s investment in capital assets is reported net of related debt, it should be noted that the
resources needed to repay this debt must be provided from other sources, since the capital assets
themselves cannot be used to liquidate these liabilities.
An additional portion of the District’s net position (18%) represents resources that are subject to
external restrictions on how they may be used.
The District’s net position increased by $11,684,283. Substantially all of this increase represents the
degree to which increases in ongoing revenues exceeded similar increases in ongoing expenses.
Governmental Activities.
Governmental activities increased the District’s net position by
$11,684,283. Key elements of this increase are as follows:
-8-
Lake Zurich Community Unit School District No. 95's Change in Net Position
Governmental Activities
FY 2014
FY 2013
Revenues:
Program Revenues
Charges for Services
Operating Grants and Contributions
Capital Grants and Contributions
General Revenues:
Property Taxes
Other Payments in Lieu of Taxes
Grants and Contributions not Restricted
to Specific Activities
Unrestricted Investment Earnings
TIF Revenues
Legal Settlements
Gain/(Loss) on Sale of Capital Assets
Miscellaneous
Total Revenues
$
$
Expenses:
Instruction
Support Services
Community Services
Payments to Other Districts and Governmental Units
Interest and Fees on Long-Term Debt
On-Behalf Retirement Contributions
Depreciation - Unallocated
Total Expenses
$
$
4,339,350
20,243,717
294,784
$
4,150,091
17,365,934
31,629
74,679,307
244,578
72,963,729
241,768
2,000,454
113,294
339,236
79,541
331,168
10,867
102,676,296
2,130,330
95,049
250,310
250,000
15,599
97,494,439
$
40,962,796
28,980,433
71,475
1,127,429
2,818,329
13,777,997
3,253,554
90,992,013
$
$
40,490,228
27,994,768
65,135
1,251,093
2,953,229
10,761,105
3,145,523
86,661,081
Change in Net Position
Net Position - Beginning
Net Assets Adjustment
$
11,684,283
126,534,441
(703,320)
$
10,833,358
115,701,083
-
Net Position - Ending
$
137,515,404
$
126,534,441

Property Taxes increased by $1,715,578 over the prior year due to an overall increase in the tax
rate for the District.

Operating Grants and Contributions increased by $2,877,783 primarily due to a $3,016,892
increase in On-Behalf Retirement Contributions of $3,016,892 due to a higher contribution rate
for 2014 compared to 2013.

Overall, expenses remained relatively stable for most of the functions between 2013 and 2014.
Total expenses increased by $4,330,932 (5%). This increase is primarily due to an increase in
On-Behalf Retirement Contributions of $3,016,892 due to a higher contribution rate for 2014
compared to 2013.
Financial Analysis of the District’s Funds
As noted earlier, the District uses fund accounting to ensure and demonstrate compliance with financerelated legal requirements.
Governmental funds. The focus of the District’s governmental funds is to provide information on nearterm inflows, outflows, and balances of spendable resources. Such information is useful in assessing
the District’s financing requirements. In particular, unassigned fund balance may serve as a useful
measure of the District’s net resources available for spending at the end of the fiscal year.
-9-
As of June 30, 2014, the District’s six governmental funds reported combined ending fund balances of
$61,180,181, an increase of $7,108,283.
General Fund – The greatest variety and the largest volume of transactions shall be recorded in the
General Fund because the General Fund covers transactions that are not specifically covered in
another fund. Certain expenditures that must be charged to this fund include the direct costs of
instructional, health, and attendance services, lunch programs, all costs of administration, and related
insurance costs. Certain revenues that must be credited to this fund include educational and working
cash tax levies, tuition, and textbook rentals.
At June 30, 2014 the General Fund had an unassigned fund balance of $34,090,937. This unassigned
fund balance represents 46% of total General Fund expenditures.
The remaining five funds had a combined fund balance of $26,846,895. The significant transactions of
these funds for the year ended June 30, 2014 are summarized as follows:
Operations and
Maintenance
Fund
Debt
Services
Fund
Transportation
Fund
Illinois Municipal
Retirement/
Social Security
Fund
Capital
Projects
Fund
Beginning Fund Balance
Net Change in Fund Balance
$
8,465,339
1,531,646
$
6,845,107
145,293
$
8,490,034
395,850
$
712,061
191,851
$
45,846
23,868
Ending Fund Balance
$
9,996,985
$
6,990,400
$
8,885,884
$
903,912
$
69,714
General Fund Budgetary Highlights
The District did not amend its budget ordinance during the year ended June 30, 2014.
Significant differences between budgeted and actual revenues and expenditures are summarized as
follows:

The difference between budgeted revenues and actual revenues was $2,493,234 (favorable)
which is 3% of total revenues. The most significant factor was On-Behalf Retirement
Contributions ($3,029,404) being higher than budgeted.

The difference between budgeted expenditures and actual expenditures was $563,123
(unfavorable) which is 1% of total expenditures. The most significant factor was On-Behalf
Retirement Contributions ($3,029,404) being higher than budgeted.
Capital Asset and Debt Administration
Capital Assets. At June 30, 2014 the District had invested $120,026,755 (net of depreciation) in a
broad range of capital assets, including land, building and building improvements, site improvements
and infrastructure, capitalized equipment, and construction in progress. Total depreciation expense for
the year was $3,957,869.
Major capital asset events during the current fiscal year included the following:

Purchase of buses totaling $4,761,674

High School roofing repair totaling $735,339

Purchase of control systems totaling $579,362
- 10 -
Lake Zurich Community Unit School District No. 95's Capital Assets
(net of depreciation)
Governmental Activities
2014
2013
Land
Building and Building Improvements
Site Improvements and Infrastructure
Capitalized Equipment
Construction in Progress
$
11,953,158
99,685,087
2,744,029
5,404,603
239,878
$
11,953,158
100,986,281
2,755,880
4,816,060
94,294
$
120,026,755
$
120,605,673
Additional information on the District’s capital assets can be found in note 3 on page 27 of this report.
Long-Term Debt. At June 30, 2014 the District had $43,006,664 in long-term debt.
Lake Zurich Community Unit School District No. 95's Outstanding Debt
Governmental Activities
2014
2013
Bonds and Notes Payable
Total
$
43,006,664
$
48,004,239
$
43,006,664
$
48,004,239
Additional information on the District’s long-term debt can be found in note 4 on pages 27 and 28 of this
report.
Economic Factors and Next Year’s Budget
The District expects its 2015 revenues and expenses to be similar to the current year. Beginning on
September 1, 2014, the District is going to begin self funding its health insurance. As a result, the
District will be paying for health insurance based on actual claims instead of premiums set by an
insurance company. The District believes that this will result in savings for the District, but it is possible
that the cost will be higher depending on the claims for any given year.
Requests for Information
This financial report is designed to provide the District’s citizens, taxpayers, parents, students,
investors, and creditors with a general overview of the District’s finances and to demonstrate the
District’s accountability for the money it receives. If you have questions about this report, or need
additional financial information, contact the District at the following address:
Lake Zurich Community Unit School District No. 95
400 South Old Rand Road
Lake Zurich, IL 60047-2459
- 11 -
BASIC FINANCIAL STATEMENTS
LAKE ZURICH COMMUNITY UNIT SCHOOL DISTRICT NO. 95
GOVERNMENT-WIDE FINANCIAL STATEMENTS
STATEMENT OF NET POSITION
JUNE 30, 2014
Governmental
Activities
ASSETS
Cash and Cash Equivalents
Investments, at Fair Value
Facility Rental Receivable, net of allowance of $0
Interest Receivable, net of allowance of $0
Taxes Receivable, net of allowance of $0
Due from Other Governments, net of allowance of $0
Prepaid Expenses
Capital Assets (Note 3):
Land
Construction in Progress
Depreciable Buildings, Property, and Equipment,
net of depreciation
Total Assets
LIABILITIES
Accounts Payable
Accrued Expenses
Payroll Liabilities
Unearned Revenue
Long-Term Liabilities
Due Within One Year
Due in More Than One Year
Total Liabilities
$
11,953,158
239,878
$
$
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - Property Taxes
Total Deferred Inflows of Resources
NET POSITION
Net Investment in Capital Assets
Restricted for:
Operations and Maintenance
Debt Service
Transportation
Retirement
Future Capital Projects
Unrestricted/(Deficit)
50,695,263
16,267,819
19,009
33,579
37,638,316
477,696
257,997
107,833,719
225,416,434
534,107
50,659
5,803,908
93,242
$
5,722,473
37,930,251
50,134,640
$
$
37,766,390
37,766,390
$
95,749,947
8,468,786
6,986,333
8,402,678
901,274
23,752
16,982,634
Total Net Position
$
137,515,404
The Notes to Financial Statements are an integral part of this statement.
- 12 -
LAKE ZURICH COMMUNITY UNIT SCHOOL DISTRICT NO. 95
GOVERNMENT-WIDE FINANCIAL STATEMENTS
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2014
Charges for
Services
Expenses
Functions/Programs
Governmental Activities
Instruction
Regular Programs
Special Education Programs
Other Instructional Programs
Support Services
Pupils
Instructional Staff
General Administration
School Administration
Business
Facilities Acquisition and Construction
Operations and Maintenance
Transportation
Food Services
Central
Other Support Services
Community Services
Payments to Other Districts and
Governmental Units
Interest and Fees on Long-Term Debt
On-Behalf Retirement Contributions
Depreciation - Unallocated
Total Governmental Activities
$
$
28,513,271
5,653,221
6,796,304
$
121,367
2,138,096
Program Revenues
Operating
Grants and
Contributions
$
318,047
2,580,001
134,105
Net (Expense)
Revenue and Changes
in Net Position
Capital
Grants and
Contributions
$
-
Governmental
Activities
$ (28,073,857)
(3,073,220)
(4,524,103)
4,254,066
1,377,727
1,827,307
3,809,818
627,343
6,044,795
4,325,940
1,671,796
5,036,058
5,583
71,475
326,359
113,303
1,640,225
-
159,628
4,338
146,458
2,145,772
148,942
-
41,494
253,290
-
(4,094,438)
(1,373,389)
(1,827,307)
(3,809,818)
(627,343)
41,494
(5,318,688)
(2,066,865)
117,371
(5,036,058)
(5,583)
(71,475)
1,127,429
2,818,329
13,777,997
3,253,554
90,992,013
4,339,350
828,429
13,777,997
20,243,717
294,784
(299,000)
(2,818,329)
(3,253,554)
$ (66,114,162)
$
$
$
General Revenues
Taxes
Property Taxes, Levied for General Purposes
Property Taxes, Levied for Debt Service
Other Payments in Lieu of Taxes
Grants and Contributions not Restricted to Specific Activities
Unrestricted Investment Earnings
TIF Revenues
Legal Settlements
Gain/(Loss) on Sale of Capital Assets
Miscellaneous Income
Total General Revenues
$
66,906,190
7,773,117
244,578
2,000,454
113,294
339,236
79,541
331,168
10,867
77,798,445
Change in Net Position
$
11,684,283
Net Position - July 1, 2013
Net Position Adjustment (Note 18)
Net Position - June 30, 2014
The Notes to Financial Statements are an integral part of this statement.
- 13 -
$
126,534,441
(703,320)
$ 137,515,404
LAKE ZURICH COMMUNITY UNIT SCHOOL DISTRICT NO. 95
FUND FINANCIAL STATEMENTS
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2014
Operations and
Maintenance
Fund
General
Fund
ASSETS
Cash and Cash Equivalents
Investments, at Fair Value
Facility Rental Receivable, net of allowance of $0
Interest Receivable, net of allowance of $0
Taxes Receivable, net of allowance of $0
Due from Other Governments, net of allowance of $0
Prepaid Expenses
Total Assets
LIABILITIES
Accounts Payable
Accrued Expenses
Payroll Liabilities
Unearned Revenue
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - Property Taxes
Total Deferred Inflows of Resources
FUND BALANCES
Nonspendable
Prepaid Expenses
Restricted
Operations and Maintenance
Debt Service
Transportation
Illinois Municipal Retirement
Social Security
SEDOL IMRF
Capital Projects
Assigned
Operations and Maintenance
Debt Service
Transportation
Illinois Municipal Retirement
Capital Projects
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of Resources,
and Fund Balances
Debt
Services Fund
Transportation
Fund
Illinois Municipal
Retirement/
Social Security
Fund
Capital
Projects
Fund
Total
Governmental
Funds
$
29,982,279
9,555,524
19,724
27,560,299
477,696
242,349
$
7,832,998
2,541,619
19,009
5,246
4,274,534
8,388
$
5,289,655
1,715,526
3,541
3,907,646
526
$
6,782,371
2,193,114
4,527
970,281
6,734
$
755,345
244,972
506
925,556
-
$
52,615
17,064
35
-
$
$
67,837,871
$
14,681,794
$
10,916,894
$
9,957,027
$
1,926,379
$
69,714
$ 105,389,679
$
$
$
$
-
$
$
10,312
82,765
93,077
$
$
29,298
69,227
98,525
$
$
362,101
28,780
390,881
$
$
132,396
11,851
5,623,136
93,242
5,860,625
$
534,107
11,851
5,803,908
93,242
6,443,108
$
$
27,643,960
27,643,960
$
$
4,293,928
4,293,928
$
$
3,926,494
3,926,494
$
$
972,618
972,618
$
$
929,390
929,390
$
$
-
$
$
37,766,390
37,766,390
$
242,349
$
8,388
$
526
$
6,734
$
$
-
$
257,997
-
$
-
-
50,695,263
16,267,819
19,009
33,579
37,638,316
477,696
257,997
8,468,786
-
6,986,333
-
8,402,678
-
793,069
103,665
4,540
-
23,752
8,468,786
6,986,333
8,402,678
793,069
103,665
4,540
23,752
$
3,541
6,990,400
$
476,472
8,885,884
$
2,638
903,912
$
45,962
69,714
$
1,519,811
3,541
476,472
2,638
45,962
34,090,937
61,180,181
$
10,916,894
$
9,957,027
$
1,926,379
$
69,714
$ 105,389,679
$
34,090,937
34,333,286
$
1,519,811
9,996,985
$
67,837,871
$
14,681,794
The Notes to Financial Statements are an integral part of this statement.
- 14 -
LAKE ZURICH COMMUNITY UNIT SCHOOL DISTRICT NO. 95
FUND FINANCIAL STATEMENTS
RECONCILIATION OF THE BALANCE SHEET
TO THE STATEMENT OF NET POSITION
JUNE 30, 2014
Total Fund Balances - Governmental Funds
$
61,180,181
Amounts reported for governmental activities in the Statement of Net Position are
different because:
Capital assets used in governmental activities are not financial resources
and therefore are not reported in the funds.
Capital Assets
Accumulated Depreciation on Capital Assets
$
169,985,350
(49,958,595)
120,026,755
Deferred charges and credits for debt issue discounts or premiums are not
financial resources and therefore are not reported in the funds.
Bond Premiums, net of related amortization
(449,397)
Some liabilities are not due and payable in the current period and therefore
are not reported in the funds.
Bonds and Notes Payable
Accrued Interest on Long-Term Debt
Compensated Absences Payable
$
(43,006,664)
(38,808)
(196,663)
(43,242,135)
Net Position of Governmental Activities
$
The Notes to Financial Statements are an integral part of this statement.
- 15 -
137,515,404
LAKE ZURICH COMMUNITY UNIT SCHOOL DISTRICT NO. 95
FUND FINANCIAL STATEMENTS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2014
General
Fund
REVENUES
Property Taxes
Payments in Lieu of Taxes
Tuition
Transportation Fees
Earnings on Investments
Food Service
District/School Activity Income
Textbooks
Other Local Sources
State Aid
Federal Aid
On-Behalf Payments
$
$
EXPENDITURES
Current
Instruction
Regular Programs
Special Education Programs
Other Instructional Programs
Support Services
Pupils
Instructional Staff
General Administration
School Administration
Business
Operations and Maintenance
Transportation
Food Services
Central
Other Support Services
Community Services
Payments to Other Districts and Governmental Units
Debt Service
Principal
Interest and Fees
Capital Outlay
On-Behalf Payments
$
$
54,200,133
144,578
466,492
66,228
1,640,225
1,675,105
51,607
508,586
4,539,181
1,551,048
13,777,997
78,621,180
28,139,902
5,470,117
6,723,685
Operations and
Maintenance
Fund
$
$
$
8,619,529
17,437
427,876
303,290
9,368,132
-
4,100,843
1,345,305
1,801,553
3,682,294
592,890
8,040
1,650,086
4,789,740
5,583
68,803
1,117,117
5,824,619
-
270,755
13,777,997
73,544,710
2,019,889
7,844,508
$
Debt
Services Fund
$
$
$
7,773,117
11,562
7,784,679
-
Transportation
Fund
$
$
$
-
$
6,851,943
1,036,116
7,888,059
$
2,351,531
113,303
16,363
2,145,772
4,626,969
-
$
$
$
1,734,997
100,000
1,588
71
83,644
1,920,300
394,123
193,487
76,737
Capital
Projects
Fund
$
$
$
Total
Governmental
Funds
116
23,752
23,868
-
$
74,679,307
244,578
466,492
113,303
113,294
1,640,225
1,675,105
51,607
960,214
6,988,314
1,634,692
13,777,997
$ 102,345,128
$
28,534,025
5,663,604
6,800,422
3,473,980
-
161,911
34,261
31,620
135,153
31,301
149,061
247,773
259,887
2,823
10,312
-
4,262,754
1,379,566
1,833,173
3,817,447
624,191
5,973,680
3,729,793
1,650,086
5,049,627
5,583
71,626
1,127,429
4,732,822
8,206,802
1,728,449
-
6,851,943
1,036,116
7,023,466
13,777,997
99,212,528
The Notes to Financial Statements are an integral part of this statement.
- 16 -
Illinois Municipal
Retirement/
Social Security
Fund
$
$
$
LAKE ZURICH COMMUNITY UNIT SCHOOL DISTRICT NO. 95
FUND FINANCIAL STATEMENTS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2014
General
Fund
EXCESS OR (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
Interfund Transfers
Sale or Compensation for Fixed Assets
$
$
$
NET CHANGE IN FUND BALANCES
$
FUND BALANCE - JULY 1, 2013
FUND BALANCE - JUNE 30, 2014
5,076,470
(256,695)
(256,695)
4,819,775
Operations and
Maintenance
Fund
34,333,286
Transportation
Fund
$
1,523,624
$
(103,380)
$
(3,579,833)
$
$
$
$
3,975,683
3,975,683
$
$
248,673
248,673
$
$
8,022
8,022
$
$
1,531,646
$
145,293
$
395,850
$
29,513,511
$
Debt
Services Fund
Illinois Municipal
Retirement/
Social Security
Fund
8,465,339
$
9,996,985
6,845,107
$
6,990,400
8,490,034
$
8,885,884
The Notes to Financial Statements are an integral part of this statement.
- 17 -
191,851
191,851
Capital
Projects
Fund
$
23,868
$
3,132,600
$
$
$
-
$
3,975,683
3,975,683
$
23,868
$
7,108,283
712,061
$
903,912
Total
Governmental
Funds
45,846
$
69,714
54,071,898
$
61,180,181
LAKE ZURICH COMMUNITY UNIT SCHOOL DISTRICT NO. 95
FUND FINANCIAL STATEMENTS
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2014
Net Change in Fund Balances - Total Governmental Funds
$
7,108,283
Amounts reported for governmental activities in the Statement of Activities are different
because:
Governmental funds report capital outlays as expenditures. However, in the
Statement of Activities the cost of those assets is allocated over their estimated
useful lives and reported as depreciation expense. This is the amount by which
capital outlay exceeds depreciation expense in the current period.
Depreciation Expense
Capital Outlays
$ (3,957,869)
7,023,466
3,065,597
In the Statement of Activities, only the gain or loss on the sale of capital assets
is reported, whereas in the governmental funds, the proceeds from the sale
increase financial resources. Thus, the change in net position differs from the
change in fund balance by the undepreciated balance of the capital assets sold.
Gain/(Loss) on Sale of Capital Assets
Proceeds from Sale of Fixed Assets
$
331,168
(3,975,683)
(3,644,515)
The change in the Net IMRF Obligation is not included in the governmental funds.
92,198
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.
Amortization of Bond Premiums
Accrued Interest
Accreted Interest
Compensated Absences
$
49,933
22,222
(1,854,368)
(7,010)
(1,789,223)
Repayment of long-term debt requires the use of current financial resources of
governmental funds and is therefore shown as an expenditure in the Statement
of Revenues, Expenditures, and Changes in Fund Balances, but the repayment
reduces long-term liabilities in the Statement of Net Position and is therefore not
reported in the Statement of Activities
Repayment of Long-Term Debt
6,851,943
Change in Net Position of Governmental Activities
$
The Notes to Financial Statements are an integral part of this statement.
- 18 -
11,684,283
LAKE ZURICH COMMUNITY UNIT SCHOOL DISTRICT NO. 95
FUND FINANCIAL STATEMENTS
STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES
FIDUCIARY FUNDS
JUNE 30, 2014
Agency Funds
ASSETS
Cash and Cash Equivalents
$
132,032
Total Assets
$
132,032
LIABILITIES
Due to Activity Fund Organizations
$
132,032
Total Liabilities
$
132,032
The Notes to Financial Statements are an integral part of this statement.
- 19 -
LAKE ZURICH COMMUNITY UNIT SCHOOL DISTRICT NO. 95
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Lake Zurich Community Unit School District No. 95’s (District) accounting policies conform
to generally accepted accounting principles as applicable to local education agencies.
The District’s financial statements are prepared in accordance with generally accepted
accounting principles (GAAP) as applied to local governments. The Governmental
Accounting Standards Board (GASB) is the accepted standard-setting body for establishing
governmental accounting and financial reporting principles. The most significant accounting
policies established in GAAP and used by the District are discussed below.
A.
Reporting Entity
The accompanying financial statements comply with the provisions of GASB
Statement No. 14, The Financial Reporting Entity, in that the financial statements
include all organizations, activities, and functions that comprise the District.
Component units are legally separate entities for which the District (the primary entity)
is financially accountable. Financial accountability is defined as the ability to appoint a
voting majority of the organization’s governing body and either (1) the District’s ability
to impose its will over the organization or (2) the potential that the organization will
provide a financial benefit to, or impose a financial burden on, the District. Using these
criteria, the District has no component units. In addition, the District is not included as
a component unit in any other governmental reporting entity as defined by GASB
pronouncements.
B.
Basic Financial Statements – Government-Wide Financial Statements
The District’s basic financial statements include both government-wide (reporting the
District as a whole) and fund (reporting the District’s major funds) financial statements.
Both the government-wide and fund financial statements categorize all of the primary
activities of the District as governmental activities. The District does not have any
business-type activities.
In the government-wide Statement of Net Position, the governmental activities column
(a) is presented on a consolidated basis, and (b) is reported on a full accrual,
economic resource basis, which recognizes all long-term assets and receivables as
well as long-term debt and obligations. The District’s net position is reported in three
parts – net investment in capital assets; restricted net position; and unrestricted net
position. The District first utilizes restricted resources to finance qualifying activities.
The government-wide Statement of Activities reports both the gross and net cost of
each of the District’s functions. The functions are also supported by general
government revenues (property taxes, personal property replacement taxes, grants
and contributions not restricted to specific activities, unrestricted investment earnings,
etc.). The Statement of Activities reduces gross expenses (including depreciation) by
related program revenues, operating and capital grants. Program revenues must be
directly associated with the function (regular programs, special education programs,
payments to other districts and governmental units, etc.). Program revenues include
charges to those who purchase, use, or directly benefit from goods, services, or
privileges provided by a given function. Program revenues also include grants and
- 20 -
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
B.
Basic Financial Statements – Government-Wide Financial Statements (Continued)
contributions that are restricted to meeting the operational or capital requirements of a
particular function. Operating grants include operating-specific and discretionary (either
operating or capital) grants while the capital grants column reflects capital-specific grants.
The net costs (by function) are normally covered by general revenue (property taxes,
personal property replacement taxes, grants and contributions not restricted to specific
activities, unrestricted investment earnings, etc.).
The District does not allocate indirect costs.
This government-wide focus is more on the sustainability of the District as an entity and
the change in the District’s net position resulting from the current year’s activities.
C.
Basic Financial Statements – Fund Financial Statements
The financial transactions of the District are reported in individual funds in the fund
financial statements. Each fund is accounted for by providing a separate set of selfbalancing accounts that comprise its assets, liabilities, reserves, fund equity, revenues
and expenditures/expenses. The various funds are reported by generic classification
within the financial statements.
The emphasis in fund financial statements is on the major funds. GASB Statement No.
34 sets forth minimum criteria (percentage of the assets, liabilities, revenues, or
expenditures/expenses of all governmental funds) for the determination of major funds.
The District electively made all governmental funds major funds.
The following fund types are used by the District:
1.
Governmental Fund Types
The focus of the governmental funds’ measurement (in the fund statements) is upon
determination of financial position and changes in financial position (sources, uses,
and balances of financial resources) rather than upon net income. The District
reports these major governmental funds and fund types:
General Fund – The General Fund is the general operating fund of the District.
It is used to account for all financial resources except those required to be
accounted for in another fund. Educational and Working Cash levies and
included in this fund.
Special Revenue Funds – The Special Revenue Funds (Operations and
Maintenance
Fund,
Transportation
Fund,
and
Illinois
Municipal
Retirement/Social Security Fund) are used to account for the proceeds of
specific revenue sources that are restricted, committed, or assigned to
expenditures for specified purposes other than debt service or capital projects.
Debt Services Fund – The Debt Services Fund is used to account for financial
resources that are restricted, committed, or assigned to expenditures for the
periodic payment of principal, interest, and related fees on general long-term
debt.
- 21 -
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C.
Basic Financial Statements – Fund Financial Statements (Continued)
1.
Governmental Fund Types (Continued)
Capital Projects Fund – The Capital Projects Fund is used to account for
financial resources that are restricted, committed, or assigned to expenditures
for the acquisition or construction of major capital facilities.
2.
Fiduciary Funds
Fiduciary funds are used to report assets held in a trustee or agency capacity for
others and therefore are not available to support the District’s programs. The
reporting focus is on net position and is reported using generally accepted
accounting principles.
The District’s fiduciary fund is presented in the fiduciary fund financial statement by
type (agency). Since by definition these assets are being held for the benefit of a
third party (student organizations) and cannot be used to address activities or
obligations of the District, these funds are not incorporated into the governmentwide statements.
The following is a description of the fiduciary fund of the District:
Agency Fund – The Agency Fund (Student Activity Fund) accounts for assets
held by the District as an agent for the student organizations. These funds are
custodial in nature and do not involve the measurement of the results of
operations. The amounts due to student organizations are equal to the assets.
D.
Basis of Accounting
Basis of accounting refers to the point at which revenues or expenditures/expenses are
recognized in the accounts and reported in the financial statements. It relates to the
timing of the measurements made regardless of the measurement focus applied.
1.
Accrual
The governmental activities in the government-wide financial statements and the
fiduciary fund financial statements are presented on the accrual basis of accounting.
Property taxes are reported in the period for which levied. Other nonexchange
revenues, including intergovernmental revenues and grants, are reported when all
eligibility requirements have been met. Fees and charges and other exchange
revenues are recognized when earned and expenses are recognized when incurred.
2.
Modified Accrual
The governmental fund financial statements are presented on the modified accrual
basis of accounting. Under the modified accrual basis of accounting, revenues are
recorded when susceptible to accrual; i.e., both measurable and available.
“Available” means collectible within the current period or within 60 days after yearend. An exception was made to the 60 day recognition period for State Aid
revenues due to delayed payments from the State of Illinois. The exception was
made to preserve the consistency of revenue recognition between years. Property
tax revenues are recognized in the period for which levied provided they are also
available. Intergovernmental revenues and grants are recognized when all eligibility
- 22 -
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D.
Basis of Accounting (Continued)
2.
Modified Accrual (Continued)
requirements are met and the revenues are available. Expenditures are recognized
when the related liability is incurred. Exceptions to this general rule include principal
and interest on general obligation long-term debt and employee vacation and sick
leave, which are recognized when due and payable.
E.
Cash and Cash Equivalents and Investments
Separate bank accounts are not maintained for all of the District’s funds. Instead, the
funds maintain their cash balances in common accounts, with accounting records being
maintained to show the portion of the common bank account balances attributable to
each participating fund.
Occasionally certain of the funds participating in the common bank account may incur
overdrafts (deficits) in the account. Such overdrafts in effect constitute cash borrowed
from other District funds and are, therefore, interfund loans that have not been authorized
by District Board action.
No District fund had a cash overdraft at June 30, 2014.
The District has defined cash and cash equivalents to include cash on hand, demand
deposits, and short-term investments with original maturities of three months or less from
the date of acquisition. Cash equivalents are accounted for at cost, which approximates
market.
Investments are stated at fair value. Fair value is determined by quoted market prices.
Gains or losses on the sale of investments are recognized as they are incurred.
F.
Receivables
All receivables are reported net of estimated uncollectible amounts.
G.
Prepaid Expenses
Prepaid expenses are for payments made by the District in the current year for goods and
services received in the subsequent fiscal year.
H.
Inventories
No inventory accounts are maintained to reflect the values of resale or supply items on
hand. Instead, the costs of such items are charged to expense when purchased. The
value of the District’s inventories is not deemed to be material.
I.
Interfund Activity
Interfund activity is reported either as loans, services provided, reimbursements, or
transfers. Loans are reported as interfund receivables and payables as appropriate and
are subject to elimination upon consolidation. All other interfund transactions are treated
as transfers. Transfers between governmental funds are netted as part of the
reconciliation to the government-wide financial statements.
- 23 -
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
J.
Capital Assets
Capital assets purchased or acquired with an original cost of $5,000 or more are reported
at historical cost or estimated historical cost. Contributed assets are reported at fair
market value as of the date of donation. Additions, improvements and other capital
outlays that significantly extend the useful life of an asset are capitalized. Other costs
incurred for repairs and maintenance are expensed as incurred. Depreciation on all
assets is provided on the straight-line basis over the following estimated useful lives:
Building and Building Improvements
Site Improvements and Infrastructure
Capitalized Equipment
K.
5 - 50 years
20 years
5 - 20 years
Deferred Outflows and Inflows of Resources
In addition to assets and liabilities, the Balance Sheets and Statements of Net Position
will sometimes report separate sections for deferred outflows of resources and deferred
inflows of resources. Deferred outflows of resources represent a consumption of net
position that applies to a future period and so will not be recognized as an outflow of
resource until then. Deferred inflows of resources represent an acquisition of net position
that applies to a future period and so will not be recognized as an inflow of resource until
that time.
L.
Compensated Absences
Vacation benefits are granted to employees in varying amounts up to specified
maximums depending on tenure with the District. A portion of unused vacation time can
accumulate and carryover to the subsequent year depending upon which department the
employee is employed in.
M.
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 bonds on a straight-line
basis. Bonds payable are reported net of the applicable bond premium or discount. Bond
issuance costs are reported as debt service expenditure.
In the fund financial statements, governmental funds recognize bond premiums and
discounts, as well as bond issuance costs, during the current period. 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.
N.
Government-Wide Net Position
Net position is divided into three components:

Net Investment in Capital Assets – consists of capital assets (net of accumulated
depreciation) reduced by the outstanding balances of bonds, mortgages, notes, or
other borrowings that are attributable to the acquisition, construction, or
improvement of those assets.
- 24 -
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
N.
O.
Government-Wide Net Position (Continued)

Restricted Net Position – consists of net position that is restricted by the District’s
creditors (for example, through debt covenants), by the state enabling legislation
(through restrictions on shared revenues), by grantors (both federal and state), and
by other contributors.

Unrestricted Net Position – the remaining net position is reported in this category.
Governmental Fund Balances
Governmental fund balances are divided between nonspendable and spendable.
Nonspendable fund balances are balances that cannot be spent because they are not
expected to be converted to cash or they are legally or contractually required to remain
intact.
The spendable fund balances are arranged in a hierarchy based on spending constraints.

Restricted – Restricted fund balances are restricted when constraints are placed on
the use by either (a) external creditors, grantors, contributors, or laws or regulations
of other governments or (b) law through constitutional provisions or enabling
legislation.

Committed – Committed fund balances are amounts that can only be used for
specific purposes as a result of a resolution of the Board of Education. Committed
amounts cannot be used for any other purpose unless the Board of Education
removes those constraints by way of resolution. Committed fund balances differ
from restricted balances because the constraints on their use do not come from
outside parties, constitutional provisions, or enabling legislation.

Assigned – Assigned fund balances are amounts that are constrained by the
District’s intent to be used for specific purposes, but are neither restricted nor
committed. Intent is expressed by an appointed body (e.g. a budget or finance
committee) or official to which the Board of Education has delegated the authority to
assign, modify or rescind amounts to be used for specific purposes. Pursuant to a
resolution by the Board of Education, the Assistant Superintendent of Business and
Operations has been delegated this authority.
Assigned fund balances also include (a) all remaining amounts that are reported in
governmental funds (other than the General Fund) that are not classified as
nonspendable, restricted or committed, and (b) amounts in the General Fund that
are intended to be used for a specific purpose. Specific amounts that are not
restricted or committed in a special revenue, capital projects or debt service fund
are assigned for purposes in accordance with the nature of their fund type.
Assignment within the General Fund conveys that the intended use of those
amounts is for a specific purpose that is narrower than the general purpose of the
District itself.

Unassigned – Unassigned fund balance is the residual classification for the General
Fund. This classification represents the General Fund balance that has not been
assigned to other funds, and that has not been restricted, committed, or assigned to
specific purposes within the General Fund. Unassigned fund balance in the General
Fund also includes amounts levied and/or borrowed for working cash. This
classification is also used to represent negative fund balances in special revenue,
debt services, and capital projects funds.
- 25 -
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
O.
Governmental Fund Balances (Continued)
The District permits funds to be expended in the following order: Restricted, Committed,
Assigned and Unassigned.
P.
Property Tax Calendar and Revenues
The District’s property tax is levied each calendar year on all taxable real property located
in the District’s district on or before the last Tuesday in December. The 2013 levy was
passed by the Board on December 19, 2013. Property taxes attach as an enforceable
lien on property as of January 1 of the calendar year they are for and are payable in two
installments early in June and early in September of the following calendar year. The
District receives significant distributions of tax receipts approximately one month after
these dates.
Q.
Estimates
The preparation of financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect the
amounts reported in the financial statements and accompanying notes. Actual results
may differ from those estimates.
NOTE 2 - DEPOSITS AND INVESTMENTS
Deposits with financial institutions are fully insured or collateralized by securities held in the
District's name.
The District is allowed to invest in securities as authorized by the School Code of Illinois,
Chapter 30, Section 235/2 and 6; and Chapter 105, Section 5/8-7.
The following table categorizes the investments according to levels of risk:
Investment
Fair Value
State Investment Pool
$
266,503
Less Than 1
$
266,503
Investment Maturities (in Years)
1-5
5 - 10
More Than 10
$
$
-
$
-
-
The fair value of investments in the State Investment Pool is the same as the value of pool
shares. The State Investment Pool is not SEC-registered, but does have regulatory oversight
through the State of Illinois.
Interest Rate Risk. The District does have a formal investment policy that limits investment
maturities as a means of managing its exposure to fair value losses arising from increasing
interest rates.
Credit Risk. State law limits investments based on credit risk. The District has an investment
policy that would further limit its investment choices. As of June 30, 2014, the District’s
investments were rated as follows:
Investment
Credit Rating
Rating Source
State Investment Pool
AAAm
Standard and Poor's
NOTE 3 - CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2014 was as follows:
- 26 -
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTE 3 - CAPITAL ASSETS (Continued)
Balance
July 1, 2013
Governmental Activities
Capital Assets not being depreciated
Land
Construction in Progress
Total Capital Assets not being depreciated
$
11,953,158
94,294
12,047,452
$
$ 142,658,956
5,078,298
8,036,532
$ 155,773,786
$
$
41,672,675
2,322,418
3,220,472
47,215,565
$
$ 108,558,221
$ 120,605,673
$
Other Capital Assets
Building and Building Improvements
Site Improvements and Infrastructure
Capitalized Equipment
Total Other Capital Assets at historical cost
Less Accumulated Depreciation for
Building and Building Improvements
Site Improvements and Infrastructure
Capitalized Equipment
Total Accumulated Depreciation
$
Other Capital Assets, Net
Governmental Activities Capital Assets, Net
Increases
Decreases
239,878
239,878
$
1,674,263
161,473
5,042,146
6,877,882
$
4,859,354
$ 4,859,354
$ 144,333,219
5,239,771
8,219,324
$ 157,792,314
$
1,214,839
$ 1,214,839
$
$
2,975,457
173,324
809,088
3,957,869
$
2,920,013
$ 3,644,515
$ 107,833,719
$
3,159,891
$ 3,738,809
$ 120,026,755
$
$
94,294
94,294
Balance
June 30, 2014
$
$
11,953,158
239,878
12,193,036
$
44,648,132
2,495,742
2,814,721
49,958,595
$
Depreciation expense was charged to functions as follows:
Governmental Activities
Operations and Maintenance
Transportation
Food Services
Unallocated
Total Governmental Activities Depreciation Expense
$
74,303
608,302
21,710
3,253,554
$
3,957,869
NOTE 4 - LONG-TERM LIABILITY ACTIVITY
Long-term liability activity for the year ended June 30, 2014 was as follows:
Balance
July 1, 2013
Governmental Activities:
Bonds and Notes Payable
Capital Appreciation
Bonds, 1998
Accreted Interest
1998 Bonds
Capital Appreciation
Bonds, 2000B
Accreted Interest
2000B Bonds
Refunding Bonds, 2004
Debt Certificates, 2007
Building Bonds, 2008A
Total Bonds and Notes Payable
$
14,073,664
12,670,000
67,999
1,268,720
48,004,239
Other Long-Term Liabilities
Compensated Absences
$
Total Other Long-Term
Liabilities
Governmental Activities
Long-Term Liabilities
$
2,059,319
Interest
Accretion
$
2,170,700
-
Additions
$
2,162,485
$ 2,386,552
$
-
189,653
$
-
$
$
189,653
$
-
$
48,193,892
- 27 -
457,816
Balance
June 30, 2014
Amounts Due
Within One Year
$
$
532,184
-
-
$ 2,386,552
$
-
224,067
15,693,837
-
Retirement
-
1,601,503
435,541
1,862,583
368,368
15,693,837
3,069,998
$
1,584,160
16,540
197,933
5,672,540
6,190,000
15,928
188,199
$ 7,384,127
$
16,236,149
6,480,000
52,071
1,080,521
43,006,664
7,010
$
-
$
196,663
$
-
$
7,010
$
-
$
196,663
$
-
$
7,010
$ 7,384,127
$
43,203,327
$
5,672,540
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTE 4 - LONG-TERM LIABILITY ACTIVITY (Continued)
Bonds and notes payable consisted of the following at June 30, 2014:
Capital Appreciation Bonds, 1998
Capital Appreciation Bonds, 2000B
Refunding Bonds, 2004
Debt Certificates, 2007
Building Bonds, 2008A
Maturity
Dates
Interest
Rates
Face
Amount
1/1/2018
12/1/2020
12/1/2016
6/1/2017
10/1/2018
3.70% - 5.15%
4.89% - 5.71%
2.05% - 5.00%
4.50%
3.00% - 5.00%
Total
Carrying
Amount
$
4,098,043
28,852,880
13,020,000
149,474
1,755,440
$
3,464,086
31,929,986
6,480,000
52,071
1,080,521
$
47,875,837
$
43,006,664
In a prior year, the District defeased certain general obligation bonds by placing the proceeds
of new bonds in an irrevocable trust to provide for all future debt service payments of the old
bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not
included in the District’s financial statements. At June 30, 2014, $6,620,000 of bonds is
considered defeased.
At June 30, 2014 the annual debt service requirements to service long-term debt are:
Year Ending June 30
2015
2016
2017
2018
2019
2020
2021
Principal
Interest
Total
$
5,672,540
5,970,942
6,322,318
6,590,391
5,972,040
6,064,908
6,413,525
$
2,356,262
2,055,644
1,570,155
1,425,633
1,051,259
720,092
371,479
$
8,028,802
8,026,586
7,892,473
8,016,024
7,023,299
6,785,000
6,785,004
$
43,006,664
$
9,550,524
$
52,557,188
Payments for compensated absences are made from the fund(s) from which the salaries are
paid for each individual employee (i.e. General Fund or Transportation Fund).
Reconciliation to the Statement of Net Position
The following summarizes non-current liabilities as shown on the Statement of Net Position:
Due Within
One Year
Bonds and Notes Payable
Bond Premiums, net of amortization
Compensated Absences
Due in More
Than One Year
Total
$
5,672,540
49,933
-
$
37,334,124
399,464
196,663
$
43,006,664
449,397
196,663
$
5,722,473
$
37,930,251
$
43,652,724
NOTE 5 - DEFICIT FUND BALANCE
No fund had a deficit fund balance at June 30, 2014.
NOTE 6 - PROPERTY TAXES
Property taxes receivable and unavailable revenue recorded in these financial statements are
from the 2013 tax levy. The unavailable revenue is 50% of the 2013 tax levy. These taxes are
unavailable as only a portion of the taxes (approximately 50%) are collected before the end of
the fiscal year and the District does not consider the remaining amounts to be available and
does not budget for their use until the following fiscal year. The District has determined that
- 28 -
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTE 6 - PROPERTY TAXES (Continued)
50% of the 2013 tax levy ($37,766,390) and 50% of the 2012 tax levy, plus back taxes, less
uncollectible amounts ($36,912,917) are allocable for use in fiscal year 2014. Therefore, 50%
of each of these levies are recorded in these financial statements as property taxes revenue. A
summary of tax rates, assessed valuations, and extensions for tax years 2013, 2012, and 2011
is as follows:
2013
$1,440,915,313
TAX YEAR
ASSESSED VALUATION
Educational
Operations and Maintenance
Debt Service
Transportation
Municipal Retirement
Social Security
Working Cash
2012
$1,507,629,055
2011
$1,616,980,158
Rate
Extension
Rate
Extension
Rate
Extension
3.8330
0.5960
0.5450
0.1350
0.0570
0.0720
0.0040
$ 55,230,284
8,587,855
7,852,988
1,945,236
821,322
1,037,459
57,637
3.5290
0.5760
0.5120
0.1840
0.0450
0.0620
0.0060
$ 53,204,229
8,683,943
7,719,061
2,774,037
678,433
934,730
90,458
3.1700
0.5460
0.4850
0.1570
0.0310
0.0550
0.0020
$ 51,258,271
8,828,712
7,842,354
2,538,659
501,264
889,339
32,340
5.2420
$ 75,532,781
4.9140
$ 74,084,891
4.4460
$ 71,890,939
NOTE 7 - OVEREXPENDITURE OF BUDGET
For the year ended June 30, 2014, the expenditures of the following fund exceeded the budget:
Fund
Budget
General Fund
$
72,981,587
$
Actual
Excess of Actual
Over Budget
73,544,710
$
563,123
The over expenditure was covered by available fund balance.
NOTE 8 - OPERATING LEASES, AS LESSEE
The District has several lease agreements for copiers and postage machines.
Annual requirements to cover outstanding lease agreements are:
Year Ending June 30
2015
Total Payments
$
26,600
Total rental expense for lease agreements for the year ended June 30, 2014 was $94,301.
NOTE 9 - RETIREMENT FUND COMMITMENTS
A.
Teachers’ Retirement System of the State of Illinois
The District participates in the Teachers’ Retirement System of the State of Illinois (TRS).
TRS is a cost-sharing 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.
- 29 -
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTE 9 - RETIREMENT FUND COMMITMENTS (Continued)
A.
Teachers’ Retirement System of the State of Illinois (Continued)
TRS members include all active nonannuitants 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% of creditable earnings. The
same contribution rate applies to members whose first contributing service is on or after
January 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% for the years ended June 30, 2013 and 2012.
The State of Illinois makes contributions directly to TRS on behalf of the District’s TRScovered employees.

On-behalf contributions to TRS
The State of Illinois makes employer pension contributions on behalf of the District.
For the year ended June 30, 2014, State of Illinois contributions were based on
35.41% of creditable earnings not paid from federal funds, and the District
recognized revenue and expenditures of $13,410,275 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% ($10,419,019) and 24.91%
($9,378,173), respectively.
The District makes other types of employer contributions directly to TRS:

2.2 formula contributions
Employers contribute 0.58% 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 $219,875.
Contributions for the years ended June 30, 2013 and
June 30, 2012 were $215,663 and $218,558, respectively.

Federal and special trust fund contributions
When TRS members are paid from federal and special trust funds administered by
the District, there is a statutory requirement for the District 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.
For the year ended June 30, 2014, the employer pension contribution was 35.41%
of salaries paid from federal and special trust funds. For the years ended
June 30, 2013 and June 30, 2012, the employer contribution was 28.05% and
24.91%, respectively. For the year ended June 30, 2014, salaries totaling $38,081
were paid from federal and special trust funds that required employer contributions
of $13,484. For the years ended June 30, 2013 and June 30, 2012, required District
contributions were $10,880 and $8,515, respectively.

Early Retirement Option (ERO)
The District 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.
- 30 -
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTE 9 - RETIREMENT FUND COMMITMENTS (Continued)
A.
Teachers’ Retirement System of the State of Illinois (Continued)

Early Retirement Option (ERO) (Continued)
The maximum employer ERO contribution under the current program is 146.5% and
applies when the member is age 55 at retirement.
For the year ended June 30, 2014, the District paid $192,146 to TRS for employer
contributions under the ERO program. For the years ended June 30, 2013 and
June 30, 2012, the District paid $86,777 and $0, respectively.

Salary increases over 6% and excess sick leave

If an employer grants salary increases over 6% 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%.
For the year ended June 30, 2014, the District paid $0 to TRS for employer
contributions due on salary increases in excess of 6%. For the years ended
June 30, 2013 and June 30, 2012, the District paid $3,145 and $11,396,
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 rate reported by the
granting employer during the four-year sick leave review period, and the TRS
total normal cost rate (17.29% of salary during the year ended June 30, 2014).
For the year ended June 30, 2014, the District paid $0 to TRS for sick leave
days granted in the excess of the normal annual allotment. For the years
ended June 30, 2013 and June 30, 2012, the District paid $0 and $0,
respectively.
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.
Illinois Municipal Retirement Fund

Plan Description
The District’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 District’s 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. That
report may be obtained on-line at www.imrf.org.
- 31 -
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTE 9 - RETIREMENT FUND COMMITMENTS (Continued)
B.
Illinois Municipal Retirement Fund (Continued)

Funding Policy
As set by statute, the District’s Regular plan members are required to contribute
4.50% 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 District’s annual required contribution rate for
calendar year 2013 was 11.04%. The District 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.

Annual Pension Cost and Net Pension Obligation
The District’s annual pension cost and the net pension obligation to the plan as of
December 31, 2013 (the date the most current actuarial information is available) is
as follows:
Annual required contribution
$
655,405
Adjustments to annual required contribution
(92,198)
Annual pension cost
$
563,207
Contributions made
655,405
Increase/(decrease) in net pension obligation
$
(92,198)
Net pension obligation beginning of year
92,198
Net pension obligation end of year
$
-
For calendar year ending December 31, 2013, the District’s actual contributions for
pension cost for the Regular plan were $655,406. Its required contribution for
calendar year 2013 was $655,406.
Three Year Trend Information for the Regular Plan
Calendar
Year
Ending
12/31/2013
12/31/2012
12/31/2011
Annual
Pension
Cost (APC)
$
655,406
584,573
571,802
Percentage
of APC
Contributed
100%
100%
95%
Net
Pension
Obligation
$
92,198
90,267
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) 7.50%
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 the District’s 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 District’s Regular plan’s unfunded
actuarial accrued liability at the December 31, 2011 is being amortized as a level
percentage of projected payroll on an open 30 year basis.
- 32 -
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTE 9 -
RETIREMENT FUND COMMITMENTS (Continued)
B.
Illinois Municipal Retirement Fund (Continued)

Funded Status and Funding Progress
As of December 31, 2013, the most recent actuarial valuation date, the Regular
plan was 85.67% funded. The actuarial accrued liability for benefits was
$12,106,677 and the actuarial value of assets was $10,372,367, resulting in an
underfunded actuarial accrued liability (UAAL) of $1,734,310. The covered payroll
for calendar year 2013 (annual payroll of active employees covered by the plan)
was $5,936,651 and the ratio of the UAAL to the covered payroll was 29%.
The schedule of funding progress, presented as required supplementary
information following the notes to the basic financial statements, presents
multiyear trend information about whether the actuarial value of plan assets is
increasing or decreasing over time relative to the actuarial accrued liability for
benefits.
C.
Social Security
Employees not qualifying for coverage under the Teachers’ Retirement System of the
State of Illinois 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. The District
paid the total required contribution for the current fiscal year.
NOTE 10 - POST EMPLOYMENT BENEFIT COMMITMENTS
Teacher Health Insurance Security Fund (THIS)
The District participates in the Teacher Health Insurance Security (THIS) Fund (Plan), a costsharing, multiple-employer 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 medical, prescription, and
behavioral health benefits, but it 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 TRS who are not employees of the state to
make a contribution to THIS fund.
The percentage of employer required contributions in the future will not exceed 105% 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 District. State contributions are intended to match contributions to THIS Fund from
active members which were 0.97% of pay during the year ended June 30, 2014. State
of Illinois contributions were $367,722, and the District recognized revenue and
expenditures of this amount during the year.
- 33 -
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTE 10 - POST EMPLOYMENT BENEFIT COMMITMENTS (Continued)
Teacher Health Insurance Security Fund (THIS) (Continued)

On behalf contributions to THIS Fund (Continued)
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% of pay, respectively.
State contributions on behalf of District employees were $342,086 and $331,605,
respectively.

Employer contributions to the THIS Fund
The District also makes contributions to THIS Fund. The employer THIS Fund
contribution was 0.72% during the year ended June 30, 2014 and 0.69% and 0.66%
during the years ended June 30 2013 and June 30, 2012, respectively. For the year
ended June 30, 2014, the District paid $272,949 to the THIS Fund. For the years
ended June 30, 2013 and June 30, 2012, the District paid $256,564 and $248,704 to
the THIS Fund, respectively, which was 100% of the required contribution.
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.”
NOTE 11 - INTERFUND TRANSFERS
The following funds were transferred for the year ended June 30, 2014:
Transfer from
General Fund
Debt Services Fund
Transfer to
Amount
Debt Services Fund
Operations and Maintenance Fund
$
256,695
8,022
The transfer from the General Fund to the Debt Services Fund was made to pay principal and
interest on debt certificates and SEDOL debt. The transfer from the Debt Services Fund to
the Operations and Maintenance Fund was made to transfer interest earned in the Debt
Services Fund.
NOTE 12 - JOINT VENTURE – LAKE COUNTY AREA VOCATIONAL SYSTEM (LCAVS)
The District and seventeen other districts within Lake and McHenry Counties have entered
into a joint agreement to provide vocational programs for member districts that are not
offering these services individually. Each member district has a financial responsibility for
annual and special assessments as established by the management council.
A summary of financial condition (cash basis) of LCAVS at June 30, 2013 (most recent
information available) is as follows:
Assets
$
28,599,103
Liabilities
Fund Equity
$
580,094
28,019,009
28,599,103
$
Revenues Received
Expenditures Disbursed
Net Increase/(Decrease) in Fund Balance
- 34 -
$
$
8,987,497
7,682,017
1,305,480
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTE 12 - JOINT VENTURE – LAKE COUNTY AREA VOCATIONAL SYSTEM (LCAVS) (Continued)
Complete financial statements for LCAVS can be obtained from the Administrative Offices at
19525 W. Washington Street, Grayslake, Illinois 60030.
NOTE 13 - RISK MANAGEMENT
The District is exposed to various risks of loss related to torts; theft of, damage to, and
destruction of assets; errors and omissions; and injuries to employees.
The District is a member of the Collective Liability Insurance Cooperative (CLIC), a joint risk
management pool of school districts through which property, general liability, automobile
liability, crime, excess property, excess liability, and boiler and machinery coverage is
provided in excess of specified limits for the members, acting as a single insurable unit.
The relationship between the District and CLIC is governed by a contract and by-laws that
have been adopted by resolution of each unit’s governing body. The District is contractually
obligated to make all annual and supplementary contributions for CLIC, to report claims on a
timely basis, cooperate with CLIC, its claims administrator and attorneys in claims
investigation and settlement, and to follow risk management procedures as outlined by CLIC.
Members have a contractual obligation to fund any deficit of CLIC attributable to a
membership year during which they were a member.
CLIC is responsible for administering the self-insurance program and purchasing excess
insurance according to the direction of the Board of Directors. CLIC also provides its
members with risk management services, including the defense and settlement of claims,
and establishes reasonable and necessary loss of reduction and prevention procedures to be
followed by the members. As of June 30, 2014, there have been no settlement amounts
which have exceeded insurance coverage in the past three years.
The District is insured under a retrospectively-rated policy for workers’ compensation
coverage. Whereas, the initial premium may be adjusted based on actual experience.
Adjustments in premiums are recorded when paid or received. During the year ended June
30, 2014, there were no significant adjustments in premiums based on actual experience.
NOTE 14 - CONSTRUCTION COMMITMENTS
The District has entered into contracts for building repairs at various schools. The total
amount of outstanding contracts is $4,717,579. As of June 30, 2014, $239,878 has been
paid on these contracts.
NOTE 15 - CONTINGENCIES
For the tax years 2005 through 2010, the Village of Lake Zurich (Village) paid the District
reimbursement for tax revenues received from the Village’s Tax Increment Finance district,
as required by the Tax Increment Allocation Redevelopment Act, 65ILCS 5/11-74.4-3. The
Village now claims that it overpaid the District in the amount of $922,334. The Village has
indicated that it will attempt to recoup the overpayment by crediting the overpayment against
future tax revenues that it owes the District. The District disputes that the Village is entitled to
repayment and, in fact, asserts that the Village owes the District additional funds. The Village
and the District are attempting to resolve their dispute.
- 35 -
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTE 16 - LEGAL DEBT LIMITATION
The Illinois School Code limits the amount of indebtedness to 13.8% of the most recent
available equalized assessed valuation (EAV) of the District. The District’s legal debt
limitation is as follows:
2013 EAV
Rate
$
1,440,915,313
13.8%
Debt Margin
Current Debt
$
198,846,313
41,926,143
Remaining Debt Margin
$
156,920,170
NOTE 17 - SUBSEQUENT EVENTS
The District has evaluated subsequent events through September 25, 2014, the date on
which the financial statements were available to be issued.
NOTE 18 - NET POSITION ADJUSTMENT
The implementation of GASB Statement No. 65, Items Previously Reported as Assets and
Liabilities, required a restatement for debt issuance costs that were amortized under prior
standards but expensed in the period incurred under the new standards. As a result, the
bond issuance costs have been fully amortized and resulted in a decrease in the beginning
net position of $703,320.
NOTE 19 - CHANGE IN ACCOUNTING PRINCIPLE
Effective in the year ended June 30, 2014, the District has implemented GASB Statement No.
65, Items Previously Reported as Assets and Liabilities. See Note 18 for further information
on the effect of this new standard on the current year financial statements.
- 36 -
REQUIRED SUPPLEMENTARY INFORMATION
LAKE ZURICH COMMUNITY UNIT SCHOOL DISTRICT NO. 95
ILLINOIS MUNICIPAL RETIREMENT FUND
SCHEDULE OF FUNDING PROGRESS
JUNE 30, 2014
Actuarial
Valuation
Date
Actuarial
Value of
Assets
(a)
Actuarial
Accrued
Liability (AAL)
-Entry Age
(b)
Unfunded
AAL
(UAAL)
(b-a)
Funded
Ratio
(a/b)
Covered
Payroll
(c)
UAAL as a
Percentage
of Covered
Payroll
((b-a)/c)
12/31/2013
12/31/2012
12/31/2011
$ 10,372,367
9,033,307
8,112,865
$ 12,106,677
11,499,208
10,544,960
$ 1,734,310
2,465,901
2,432,095
85.67%
78.56%
76.94%
$ 5,936,651
5,397,723
5,274,924
29.21%
45.68%
46.11%
On a market value basis, the actuarial value of assets as of December 31, 2013 is $12,212,947. On a
market basis, the funded ratio would be 100.88%.
The actuarial value of assets and accrued liability cover active and inactive members who have service
credit with the District. They do not include amounts for retirees. The actuarial accrued liability for
retirees is 100% funded.
See Accompanying Independent Auditor’s Report
- 37 -
LAKE ZURICH COMMUNITY UNIT SCHOOL DISTRICT NO. 95
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES - BUDGET AND ACTUAL
GENERAL FUND
YEAR ENDED JUNE 30, 2014
Budgeted Amounts
Original and Final
REVENUES
Property Taxes
Payments in Lieu of Taxes
Tuition
Earnings on Investments
Food Service
District/School Activity Income
Textbooks
Other Local Sources
State Aid
General State Aid
Special Education
Career and Technical Education
Bilingual
State Free Lunch and Breakfast
Driver Education
Other State Aid
Federal Aid
Food Service
Title I
Federal Special Education
CTE - Perkins
Title III - English Language Acquisition
Title II - Teacher Quality
Medicaid Matching Funds - Administrative Outreach
Medicaid Matching Funds - Fee-for-Service Program
On-Behalf Payments
Total Revenues
$
$
EXPENDITURES
Instruction
Regular Programs
Salaries
Employee Benefits
Purchased Services
Supplies and Materials
Other Objects
Non-Capitalized Equipment
$
$
Special Education Programs
Salaries
Employee Benefits
Purchased Services
Supplies and Materials
Non-Capitalized Equipment
$
$
Special Education Programs Pre-K
Salaries
Employee Benefits
Supplies and Materials
$
$
CTE Programs
Salaries
Employee Benefits
Purchased Services
Supplies and Materials
$
$
See Accompanying Independent Auditor's Report
- 38 -
54,494,696
159,000
386,300
56,000
1,638,300
1,951,738
44,100
161,541
Actual
Amounts
$
54,200,133
144,578
466,492
66,228
1,640,225
1,675,105
51,607
508,586
1,999,781
2,773,599
31,197
48,243
4,200
38,000
5,000
2,000,454
2,422,639
27,194
47,683
3,269
33,603
4,339
155,000
259,501
941,100
17,000
22,464
77,593
30,000
85,000
10,748,593
76,127,946
145,673
207,714
913,443
17,534
24,959
82,097
43,745
115,883
13,777,997
78,621,180
$
23,624,178
2,984,700
381,920
1,434,544
19,700
88,500
28,533,542
$
4,423,500
501,545
129,400
48,575
14,000
5,117,020
$
388,000
44,875
15,000
447,875
$
1,020,848
129,165
630
69,624
1,220,267
$
$
$
$
$
23,615,159
3,011,395
349,320
1,042,246
38,599
83,183
28,139,902
4,211,849
509,558
118,046
109,908
41,540
4,990,901
411,241
47,606
20,369
479,216
1,017,510
126,745
604
70,109
1,214,968
LAKE ZURICH COMMUNITY UNIT SCHOOL DISTRICT NO. 95
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES - BUDGET AND ACTUAL
GENERAL FUND
YEAR ENDED JUNE 30, 2014
Budgeted Amounts
Original and Final
EXPENDITURES (Continued)
Instruction (Continued)
Interscholastic Programs
Salaries
Employee Benefits
Purchased Services
Supplies and Materials
Other Objects
Non-Capitalized Equipment
$
$
Summer School Programs
Salaries
Employee Benefits
Purchased Services
Supplies and Materials
$
$
Gifted Programs
Salaries
Employee Benefits
Supplies and Materials
$
$
Driver's Education Programs
Salaries
Employee Benefits
Purchased Services
Supplies and Materials
$
$
Bilingual Programs
Salaries
Employee Benefits
Purchased Services
Supplies and Materials
$
$
Private Tuition - Other Objects
Regular K-12 Programs
Special Education Programs K-12
Special Education Programs Pre-K
$
Total Instruction
Support Services
Pupils
Attendance and Social Work Services
Salaries
Employee Benefits
Purchased Services
Supplies and Materials
Non-Capitalized Equipment
$
391,300
7,910
17,500
21,300
438,010
$
306,800
41,460
500
348,760
$
305,000
39,270
6,000
3,200
353,470
$
885,000
131,720
1,400
2,000
1,020,120
$
$
$
$
$
$
1,102,984
14,105
242,564
179,691
21,886
2,517
1,563,747
260,092
10,128
50,840
18,212
339,272
358,337
39,384
341
398,062
304,107
31,704
1,954
2,961
340,726
908,404
151,717
1,060,121
$
$
$
2,026
1,803,354
1,409
1,806,789
$
41,576,863
$
40,333,704
$
1,024,000
126,000
100
3,000
1,550
1,154,650
$
1,029,079
124,559
1,273
1,154,911
708,125
78,455
3,500
9,950
800,030
$
$
$
See Accompanying Independent Auditor's Report
- 39 -
1,210,913
16,735
236,132
165,385
35,500
5,034
1,669,699
25,000
2,400,100
3,000
2,428,100
$
Guidance Services
Salaries
Employee Benefits
Purchased Services
Supplies and Materials
Actual
Amounts
$
$
709,017
73,055
2,697
9,398
794,167
LAKE ZURICH COMMUNITY UNIT SCHOOL DISTRICT NO. 95
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES - BUDGET AND ACTUAL
GENERAL FUND
YEAR ENDED JUNE 30, 2014
Budgeted Amounts
Original and Final
EXPENDITURES (Continued)
Support Services (Continued)
Pupils (Continued)
Health Services
Salaries
Employee Benefits
Purchased Services
Supplies and Materials
Non-Capitalized Equipment
$
813,000
77,814
2,250
13,500
1,000
907,564
$
480,000
51,190
31,000
9,450
1,500
573,140
$
604,225
57,000
76,500
4,150
1,000
742,875
$
$
$
500
1,300
1,800
$
500
1,158
1,658
$
4,180,059
$
4,100,843
$
99,740
3,414
339,793
30,500
5,000
478,447
$
43,559
1,653
296,342
30,026
371,580
695,955
88,359
300
117,632
902,246
$
$
$
10,000
150
66,000
103,000
5,000
184,150
$
7,092
98
49,958
43,268
100,416
$
1,564,843
$
1,345,305
$
Psychological Services
Salaries
Employee Benefits
Purchased Services
Supplies and Materials
Non-Capitalized Equipment
$
$
Speech Pathology and Audiology Services
Salaries
Employee Benefits
Purchased Services
Supplies and Materials
Non-Capitalized Equipment
$
$
Other Support Services - Pupils
Purchased Services
Supplies and Materials
$
Total Support Services - Pupils
Instructional Staff
Improvement of Instruction Services
Salaries
Employee Benefits
Purchased Services
Supplies and Materials
Non-Capitalized Equipment
$
Educational Media Services
Salaries
Employee Benefits
Purchased Services
Supplies and Materials
Non-Capitalized Equipment
$
$
Assessment and Testing
Salaries
Employee Benefits
Purchased Services
Supplies and Materials
Non-Capitalized Equipment
$
Total Support Services - Instructional Staff
See Accompanying Independent Auditor's Report
- 40 -
Actual
Amounts
$
$
$
$
$
791,362
67,891
1,292
9,027
869,572
482,473
49,047
17,333
6,368
555,221
572,846
71,701
71,387
9,380
725,314
683,327
86,995
96
102,086
805
873,309
LAKE ZURICH COMMUNITY UNIT SCHOOL DISTRICT NO. 95
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES - BUDGET AND ACTUAL
GENERAL FUND
YEAR ENDED JUNE 30, 2014
Budgeted Amounts
Original and Final
EXPENDITURES (Continued)
Support Services (Continued)
General Administration
Board of Education Services
Purchased Services
Supplies and Materials
Other Objects
$
423,500
12,000
21,000
456,500
$
256,000
53,170
3,200
2,750
6,000
321,120
$
$
$
383,000
116,720
31,000
8,000
2,000
540,720
$
387,863
108,232
44,266
5,750
576
546,687
$
$
606,000
606,000
$
$
622,884
622,884
$
1,924,340
$
1,801,553
$
$
$
2,810,073
861,639
13,200
23,938
8,800
3,717,650
$
2,822,573
814,462
2,227
21,945
14,977
6,110
3,682,294
$
3,717,650
$
3,682,294
$
164,500
45,320
11,000
2,000
222,820
$
164,440
44,975
19,208
78
1,785
230,486
162,000
48,960
307,750
85,000
11,000
75,000
689,710
$
$
Executive Administration Services
Salaries
Employee Benefits
Purchased Services
Supplies and Materials
Other Objects
$
$
Special Area Administration Services
Salaries
Employee Benefits
Purchased Services
Supplies and Materials
Other Objects
$
Tort Immunity Services
Purchased Services
Total Support Services - General Administration
School Administration
Office of the Principal Services
Salaries
Employee Benefits
Purchased Services
Supplies and Materials
Other Objects
Non-Capitalized Equipment
Total Support Services - School Administration
Business
Direction of Business Support Services
Salaries
Employee Benefits
Purchased Services
Supplies and Materials
Other Objects
$
Fiscal Services
Salaries
Employee Benefits
Purchased Services
Supplies and Materials
Other Objects
Non-Capitalized Equipment
$
$
See Accompanying Independent Auditor's Report
- 41 -
Actual
Amounts
$
$
$
$
292,941
11,676
12,239
316,856
259,920
47,300
1,683
2,305
3,918
315,126
155,215
40,249
138,535
23,916
1,590
859
360,364
LAKE ZURICH COMMUNITY UNIT SCHOOL DISTRICT NO. 95
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES - BUDGET AND ACTUAL
GENERAL FUND
YEAR ENDED JUNE 30, 2014
Budgeted Amounts
Original and Final
EXPENDITURES (Continued)
Support Services (Continued)
Business (Continued)
Internal Services
Purchased Services
Actual
Amounts
$
$
1,000
1,000
$
$
2,040
2,040
Total Support Services - Business
$
913,530
$
592,890
Transportation
Purchased Services
Total Support Services - Transportation
$
$
34,500
34,500
$
$
8,040
8,040
$
1,575,000
10,000
25,000
2,500
5,000
1,617,500
$
1,636,698
7,785
2,242
3,361
1,650,086
722,000
121,195
51,500
500
1,500
896,695
$
132,700
25,540
54,000
22,000
750
1,000
235,990
$
358,125
331,111
90,750
8,000
8,000
795,986
$
$
$
942,000
147,525
192,000
348,500
2,500
1,144,700
2,777,225
$
918,264
134,345
159,842
465,368
35
1,227,725
2,905,579
$
4,705,896
$
4,789,740
Food Services
Purchased Services
Supplies and Materials
Other Objects
Non-Capitalized Equipment
Termination Benefits
Total Support Services - Food Services
$
Central
Planning, Research, Development and Evaluation Services
Salaries
Employee Benefits
Purchased Services
Supplies and Materials
Other Objects
$
$
Information Services
Salaries
Employee Benefits
Purchased Services
Supplies and Materials
Other Objects
Non-Capitalized Equipment
$
$
Staff Services
Salaries
Employee Benefits
Purchased Services
Supplies and Materials
Other Objects
$
$
Data Processing Services
Salaries
Employee Benefits
Purchased Services
Supplies and Materials
Other Objects
Non-Capitalized Equipment
$
Total Support Services - Central
See Accompanying Independent Auditor's Report
- 42 -
$
$
$
$
720,006
145,669
5,892
13,960
393
885,920
123,301
28,831
22,170
15,451
1,020
190,773
327,221
371,605
103,142
4,423
1,077
807,468
LAKE ZURICH COMMUNITY UNIT SCHOOL DISTRICT NO. 95
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES - BUDGET AND ACTUAL
GENERAL FUND
YEAR ENDED JUNE 30, 2014
Budgeted Amounts
Original and Final
EXPENDITURES (Continued)
Support Services (Continued)
Other Support Services
Purchased Services
Total Other Support Services
Actual
Amounts
$
$
30,660
30,660
$
$
5,583
5,583
$
18,688,978
$
17,976,334
$
17,500
658
45,512
11,200
74,870
$
16,707
933
39,670
11,493
68,803
$
$
5,313
5,313
$
5,313
131
5,444
$
5,313
$
5,444
$
293,500
$
253,365
$
1,127,000
1,420,500
$
858,308
1,111,673
$
1,425,813
$
1,117,117
$
16,470
$
69,977
$
85,000
300,000
401,470
$
200,778
270,755
Provision for Contingencies
$
65,000
$
On-Behalf Payments
$
10,748,593
$
13,777,997
Total Expenditures
$
72,981,587
$
73,544,710
EXCESS OR (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
$
3,146,359
$
5,076,470
Total Support Services
Community Services
Salaries
Employee Benefits
Purchased Services
Supplies and Materials
Total Community Services
$
Payments to Other Districts and Governmental Units
Payments to Other Districts and Governmental Units (In-State)
Other Payments to In-State Governmental Units
Purchased Services
Other Objects
Total Payments to Other Districts and Governmental Units (In-State)
Payments to Other Districts and Governmental Units-Tuition (In-State)
Payments for Regular Programs
Other Objects
Payments for Special Education Programs
Other Objects
Total Payments to Other Districts and Governmental Units-Tuition (In-State)
Total Payments to Other Districts and Governmental Units
Capital Outlay
Instruction
Other Instructional Programs
Support Services
Business
Central
Total Capital Outlay
$
OTHER FINANCING SOURCES (USES)
Interfund Transfers
$
(256,695)
NET CHANGE IN FUND BALANCE
$
FUND BALANCE - JULY 1, 2013
2,889,664
(256,695)
$
33,152,224
FUND BALANCE - JUNE 30, 2014
$
See Accompanying Independent Auditor's Report
- 43 -
36,041,888
-
4,819,775
29,513,511
$
34,333,286
LAKE ZURICH COMMUNITY UNIT SCHOOL DISTRICT NO. 95
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES - BUDGET AND ACTUAL
SPECIAL REVENUE FUND - OPERATIONS AND MAINTENANCE FUND
YEAR ENDED JUNE 30, 2014
Budgeted Amounts
Original and Final
REVENUES
Property Taxes
Earnings on Investments
Other Local Sources
State Aid
Other Restricted Revenue from State Sources
Total Revenues
$
$
EXPENDITURES
Support Services
Operations and Maintenance
Salaries
Employee Benefits
Purchased Services
Supplies and Materials
Other Objects
Non-Capitalized Equipment
Total Support Services - Operations and Maintenance
$
8,613,459
13,000
295,000
88,823
9,010,282
Actual
Amounts
$
$
303,290
9,368,132
$
942,015
143,100
2,930,050
2,010,500
2,000
95,000
6,122,665
$
824,978
145,866
2,997,647
1,799,924
1,255
54,949
5,824,619
Total Support Services
$
6,122,665
$
5,824,619
Capital Outlay
Support Services
Operations and Maintenance
Total Capital Outlay
$
$
2,040,000
2,040,000
$
$
2,019,889
2,019,889
Provision for Contingencies
$
500,000
$
Total Expenditures
$
8,662,665
$
7,844,508
EXCESS OR (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
$
347,617
$
1,523,624
OTHER FINANCING SOURCES (USES)
Interfund Transfers
$
8,619,529
17,437
427,876
15,000
NET CHANGE IN FUND BALANCE
$
FUND BALANCE - JULY 1, 2013
362,617
8,022
$
8,869,327
FUND BALANCE - JUNE 30, 2014
$
9,231,944
See Accompanying Independent Auditor's Report
- 44 -
-
1,531,646
8,465,339
$
9,996,985
LAKE ZURICH COMMUNITY UNIT SCHOOL DISTRICT NO. 95
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES - BUDGET AND ACTUAL
SPECIAL REVENUE FUND - TRANSPORTATION FUND
YEAR ENDED JUNE 30, 2014
Budgeted Amounts
Original and Final
REVENUES
Property Taxes
Transportation Fees
Earnings on Investments
State Aid
Transportation
Total Revenues
$
$
EXPENDITURES
Support Services
Transportation
Salaries
Employee Benefits
Purchased Services
Supplies and Materials
Other Objects
Non-Capitalized Equipment
Total Support Services - Transportation
$
2,773,815
89,000
13,100
2,242,976
5,118,891
Actual
Amounts
$
$
2,145,772
4,626,969
$
1,450,500
170,450
1,788,900
408,000
2,500
1,000
3,821,350
$
1,468,764
170,856
1,450,793
382,780
787
3,473,980
Total Support Services
$
3,821,350
$
3,473,980
Capital Outlay
Support Services
Transportation
Total Capital Outlay
$
$
4,747,822
4,747,822
$
$
4,732,822
4,732,822
Total Expenditures
$
8,569,172
$
8,206,802
EXCESS OR (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
$
(3,450,281)
$
(3,579,833)
OTHER FINANCING SOURCES (USES)
Sale or Compensation for Fixed Assets
$
2,351,531
113,303
16,363
3,975,683
NET CHANGE IN FUND BALANCE
$
FUND BALANCE - JULY 1, 2013
525,402
3,975,683
$
7,964,686
FUND BALANCE - JUNE 30, 2014
$
8,490,088
See Accompanying Independent Auditor's Report
- 45 -
395,850
8,490,034
$
8,885,884
LAKE ZURICH COMMUNITY UNIT SCHOOL DISTRICT NO. 95
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES - BUDGET AND ACTUAL
SPECIAL REVENUE FUND - ILLINOIS MUNICIPAL RETIREMENT/SOCIAL SECURITY FUND
YEAR ENDED JUNE 30, 2014
Budgeted Amounts
Original and Final
REVENUES
Property Taxes
FICA/Medicare Only Purposes Levies
Payments in Lieu of Taxes
Earnings on Investments
State Aid
Career and Technical Education
Bilingual Education
Federal Aid
Title I
Federal - Special Education
Title III - English Language Acquisition
Title II - Teacher Quality
Total Revenues
$
732,398
965,145
100,000
1,000
Actual
Amounts
$
781
58
EXPENDITURES
Instruction
Regular Programs
Employee Benefits
Pre-K Programs
Employee Benefits
Special Education Programs
Employee Benefits
Special Education Programs - Pre-K
Employee Benefits
CTE Programs
Employee Benefits
Interscholastic Programs
Employee Benefits
Summer School Programs
Employee Benefits
Gifted Programs
Employee Benefits
Driver's Education Programs
Employee Benefits
Bilingual Programs
Employee Benefits
71
$
8,273
111,927
261
87
1,919,930
$
10,635
72,347
595
67
1,920,300
$
285,498
$
394,123
131,165
Support Services
Pupils
Attendance and Social Work Services
Employee Benefits
Guidance Services
Employee Benefits
Health Services
Employee Benefits
Psychological Services
Employee Benefits
Speech Pathology and Audiology Services
Employee Benefits
-
189,326
158,948
30,640
34,539
13,415
12,825
33,902
31,821
14,192
11,003
4,525
4,466
4,200
4,204
$
9,300
716,163
$
12,418
664,347
$
14,400
$
14,575
$
19,973
19,834
118,290
112,849
6,575
6,683
6,700
165,938
See Accompanying Independent Auditor's Report
- 46 -
750,841
984,156
100,000
1,588
$
7,970
161,911
LAKE ZURICH COMMUNITY UNIT SCHOOL DISTRICT NO. 95
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES - BUDGET AND ACTUAL
SPECIAL REVENUE FUND - ILLINOIS MUNICIPAL RETIREMENT/SOCIAL SECURITY FUND
YEAR ENDED JUNE 30, 2014
Budgeted Amounts
Original and Final
EXPENDITURES (Continued)
Support Services (Continued)
Instructional Staff
Improvement of Instruction Services
Employee Benefits
Educational Media Services
Employee Benefits
Assessment and Testing
Employee Benefits
$
1,202
Actual
Amounts
$
32,170
General Administration
Executive Administration Services
Employee Benefits
Special Area Administrative Services
Employee Benefits
School Administration
Office of the Principal Services
Employee Benefits
Business
Direction of Business Support Services
Employee Benefits
Fiscal Services
Employee Benefits
Operations and Maintenance
Employee Benefits
Transportation
Employee Benefits
Central
Planning, Research, Development and Evaluation Services
Employee Benefits
Information Services
Employee Benefits
Staff Services
Employee Benefits
Data Processing Services
Employee Benefits
1,016
32,914
$
325
33,697
$
331
34,261
$
11,110
$
11,970
$
20,565
31,675
$
19,650
31,620
$
$
134,634
134,634
$
$
135,153
135,153
$
2,350
$
2,401
$
30,500
32,850
$
28,900
31,301
$
$
131,372
131,372
$
$
149,061
149,061
$
$
245,150
245,150
$
$
247,773
247,773
$
14,975
$
16,683
24,050
22,677
57,482
56,295
$
149,750
246,257
$
164,232
259,887
Total Support Services
$
1,021,573
$
1,050,967
Community Services
Employee Benefits
Total Community Services
$
$
3,561
3,561
$
$
2,823
2,823
See Accompanying Independent Auditor's Report
- 47 -
LAKE ZURICH COMMUNITY UNIT SCHOOL DISTRICT NO. 95
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES - BUDGET AND ACTUAL
SPECIAL REVENUE FUND - ILLINOIS MUNICIPAL RETIREMENT/SOCIAL SECURITY FUND
YEAR ENDED JUNE 30, 2014
Budgeted Amounts
Original and Final
Actual
Amounts
EXPENDITURES (Continued)
Payments to Other Districts and Governmental Units
Payments for Special Education Programs
Employee Benefits
Total Payments to Other Districts and Governmental Units
$
$
10,312
10,312
$
$
10,312
10,312
Total Expenditures
$
1,751,609
$
1,728,449
EXCESS OR (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
$
168,321
$
191,851
OTHER FINANCING SOURCES (USES)
-
NET CHANGE IN FUND BALANCE
$
FUND BALANCE - JULY 1, 2013
168,321
$
813,417
FUND BALANCE - JUNE 30, 2014
$
981,738
See Accompanying Independent Auditor's Report
- 48 -
191,851
712,061
$
903,912
LAKE ZURICH COMMUNITY UNIT SCHOOL DISTRICT NO. 95
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2014
NOTE 1 - BUDGETARY PROCESS
The District follows procedures mandated by Illinois State law and District Board policy to
establish the budgetary data reflected in its financial statements. The budget was passed
on September 26, 2013 and was not amended. The modified accrual basis budgeted
amounts in this report are the result of full compliance with the following procedures:
For each fund, total fund expenditures may not legally exceed the budgeted amounts.
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.
Prior to July 1, the Superintendent submits to the Board of Education a proposed
operating budget for the fiscal year commencing on that date. The operating
budget includes proposed expenditures and the means of financing them.
2.
A public hearing is conducted to obtain taxpayer comments.
3.
Prior to October 1, the budget is legally adopted through passage of a resolution.
4.
Formal budgetary integration is employed as a management control device during
the year.
5.
The Board of Education may make transfers between the various items in any fund
not exceeding in the aggregate 10% of the total of such fund as set forth in the
budget.
6.
The Board of Education may amend the budget (in other ways) by the same
procedures required of its original adoption.
NOTE 2 - EXCESS OF EXPENDITURES OVER BUDGET
For the year ended June 30, 2014 the expenditures of the following fund presented as
Required Supplementary Information exceeded the budget:
Fund
General Fund
Budget
$
72,981,587
Actual
$
73,544,710
Excess of Actual
Over Budget
$
See Accompanying Independent Auditor’s Report
- 49 -
563,123
SUPPLEMENTAL FINANCIAL INFORMATION
LAKE ZURICH COMMUNITY UNIT SCHOOL DISTRICT NO. 95
COMBINING BALANCE SHEET
GENERAL FUND
JUNE 30, 2014
Educational
Fund
Working Cash
Fund
General Fund
Total
ASSETS
Cash and Cash Equivalents
Investments, at Fair Value
Interest Receivable, net of allowance of $0
Taxes Receivable, net of allowance of $0
Due from Other Governments, net of allowance of $0
Prepaid Expenses
$ 28,189,610
8,974,132
18,524
27,533,011
477,696
242,349
$
1,792,669
581,392
1,200
27,288
-
$ 29,982,279
9,555,524
19,724
27,560,299
477,696
242,349
Total Assets
$ 65,435,322
$
2,402,549
$ 67,837,871
$
132,396
11,851
5,623,136
93,242
5,860,625
$
$
-
$ 27,615,142
$ 27,615,142
$
$
28,818
28,818
$
$
$ 67,837,871
LIABILITIES
Accounts Payable
Accrued Expenses
Payroll Liabilities
Unearned Revenue
Total Liabilities
$
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - Property Taxes
Total Deferred Inflows of Resources
FUND BALANCE
Nonspendable
Prepaid Expenses
Unassigned
Total Fund Balance
242,349
31,717,206
$ 31,959,555
$
$
2,373,731
2,373,731
Total Liabilities, Deferred Inflows of Resources,
and Fund Balance
$ 65,435,322
$
2,402,549
See Accompanying Independent Auditor's Report
- 50 -
$
$
132,396
11,851
5,623,136
93,242
5,860,625
$ 27,643,960
$ 27,643,960
242,349
34,090,937
$ 34,333,286
LAKE ZURICH COMMUNITY UNIT SCHOOL DISTRICT NO. 95
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
GENERAL FUND
YEAR ENDED JUNE 30, 2014
Working Cash
Fund
Educational
Fund
REVENUES
Property Taxes
Payments in Lieu of Taxes
Tuition
Earnings on Investments
Food Service
District/School Activity Income
Textbooks
Other Local Sources
State Aid
Federal Aid
On-Behalf Payments
$
$
EXPENDITURES
Current
Instruction
Regular Programs
Special Education Programs
Other Instructional Programs
Support Services
Pupils
Instructional Staff
General Administration
School Administration
Business
Transportation
Food Services
Central
Other Support Services
Community Services
Payments to Other Districts and Governmental Units
Capital Outlay
On-Behalf Payments
EXCESS OR (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
$
$
$
$
$
$
4,919,961
$
$
4,663,266
$
27,296,289
$
31,959,555
-
156,509
$
$
$
156,509
$
2,373,731
54,200,133
144,578
466,492
66,228
1,640,225
1,675,105
51,607
508,586
4,539,181
1,551,048
13,777,997
78,621,180
28,139,902
5,470,117
6,723,685
$
4,100,843
1,345,305
1,801,553
3,682,294
592,890
8,040
1,650,086
4,789,740
5,583
68,803
1,117,117
270,755
13,777,997
73,544,710
$
5,076,470
(256,695)
$
2,217,222
See Acompanying Independent Auditor's Report
- 51 -
72,336
4,632
79,541
156,509
-
(256,695)
FUND BALANCE - JULY 1, 2013
FUND BALANCE - JUNE 30, 2014
28,139,902
5,470,117
6,723,685
$
4,100,843
1,345,305
1,801,553
3,682,294
592,890
8,040
1,650,086
4,789,740
5,583
68,803
1,117,117
270,755
13,777,997
73,544,710
OTHER FINANCING SOURCES (USES)
Interfund Transfers
NET CHANGE IN FUND BALANCES
54,127,797
144,578
466,492
61,596
1,640,225
1,675,105
51,607
429,045
4,539,181
1,551,048
13,777,997
78,464,671
General Fund
Total
4,819,775
29,513,511
$
34,333,286
LAKE ZURICH COMMUNITY UNIT SCHOOL DISTRICT NO. 95
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES - BUDGET AND ACTUAL
GENERAL FUND - EDUCATIONAL FUND
YEAR ENDED JUNE 30, 2014
Budgeted Amounts
Original and Final
REVENUES
Property Taxes
Payments in Lieu of Taxes
Tuition
Earnings on Investments
Food Service
District/School Activity Income
Textbooks
Other Local Sources
State Aid
General State Aid
Special Education
Career and Technical Education
Bilingual
State Free Lunch and Breakfast
Driver Education
Other State Aid
Federal Aid
Food Service
Title I
Federal Special Education
CTE - Perkins
Title III - English Language Acquisition
Title II - Teacher Quality
Medicaid Matching Funds - Administrative Outreach
Medicaid Matching Funds - Fee-for-Service Program
On-Behalf Payments
Total Revenues
$
$
EXPENDITURES
Instruction
Regular Programs
Salaries
Employee Benefits
Purchased Services
Supplies and Materials
Other Objects
Non-Capitalized Equipment
$
$
Special Education Programs
Salaries
Employee Benefits
Purchased Services
Supplies and Materials
Non-Capitalized Equipment
$
$
Special Education Programs Pre-K
Salaries
Employee Benefits
Supplies and Materials
$
$
CTE Programs
Salaries
Employee Benefits
Purchased Services
Supplies and Materials
$
$
See Accompanying Independent Auditor's Report
- 52 -
54,378,033
159,000
386,300
52,000
1,638,300
1,951,738
44,100
82,000
Actual
Amounts
$
54,127,797
144,578
466,492
61,596
1,640,225
1,675,105
51,607
429,045
1,999,781
2,773,599
31,197
48,243
4,200
38,000
5,000
2,000,454
2,422,639
27,194
47,683
3,269
33,603
4,339
155,000
259,501
941,100
17,000
22,464
77,593
30,000
85,000
10,748,593
75,927,742
145,673
207,714
913,443
17,534
24,959
82,097
43,745
115,883
13,777,997
78,464,671
$
23,624,178
2,984,700
381,920
1,434,544
19,700
88,500
28,533,542
$
4,423,500
501,545
129,400
48,575
14,000
5,117,020
$
388,000
44,875
15,000
447,875
$
1,020,848
129,165
630
69,624
1,220,267
$
$
$
$
$
23,615,159
3,011,395
349,320
1,042,246
38,599
83,183
28,139,902
4,211,849
509,558
118,046
109,908
41,540
4,990,901
411,241
47,606
20,369
479,216
1,017,510
126,745
604
70,109
1,214,968
LAKE ZURICH COMMUNITY UNIT SCHOOL DISTRICT NO. 95
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES - BUDGET AND ACTUAL
GENERAL FUND - EDUCATIONAL FUND
YEAR ENDED JUNE 30, 2014
Budgeted Amounts
Original and Final
EXPENDITURES (Continued)
Instruction (Continued)
Interscholastic Programs
Salaries
Employee Benefits
Purchased Services
Supplies and Materials
Other Objects
Non-Capitalized Equipment
$
$
Summer School Programs
Salaries
Employee Benefits
Purchased Services
Supplies and Materials
$
$
Gifted Programs
Salaries
Employee Benefits
Supplies and Materials
$
$
Driver's Education Programs
Salaries
Employee Benefits
Purchased Services
Supplies and Materials
$
$
Bilingual Programs
Salaries
Employee Benefits
Purchased Services
Supplies and Materials
$
$
Private Tuition - Other Objects
Regular K-12 Programs
Special Education Programs K-12
Special Education Programs Pre-K
$
Total Instruction
Support Services
Pupils
Attendance and Social Work Services
Salaries
Employee Benefits
Purchased Services
Supplies and Materials
Non-Capitalized Equipment
$
391,300
7,910
17,500
21,300
438,010
$
306,800
41,460
500
348,760
$
305,000
39,270
6,000
3,200
353,470
$
885,000
131,720
1,400
2,000
1,020,120
$
$
$
$
$
$
1,102,984
14,105
242,564
179,691
21,886
2,517
1,563,747
260,092
10,128
50,840
18,212
339,272
358,337
39,384
341
398,062
304,107
31,704
1,954
2,961
340,726
908,404
151,717
1,060,121
$
$
$
2,026
1,803,354
1,409
1,806,789
$
41,576,863
$
40,333,704
$
1,024,000
126,000
100
3,000
1,550
1,154,650
$
1,029,079
124,559
1,273
1,154,911
708,125
78,455
3,500
9,950
800,030
$
$
$
See Accompanying Independent Auditor's Report
- 53 -
1,210,913
16,735
236,132
165,385
35,500
5,034
1,669,699
25,000
2,400,100
3,000
2,428,100
$
Guidance Services
Salaries
Employee Benefits
Purchased Services
Supplies and Materials
Actual
Amounts
$
$
709,017
73,055
2,697
9,398
794,167
LAKE ZURICH COMMUNITY UNIT SCHOOL DISTRICT NO. 95
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES - BUDGET AND ACTUAL
GENERAL FUND - EDUCATIONAL FUND
YEAR ENDED JUNE 30, 2014
Budgeted Amounts
Original and Final
EXPENDITURES (Continued)
Support Services (Continued)
Pupils (Continued)
Health Services
Salaries
Employee Benefits
Purchased Services
Supplies and Materials
Non-Capitalized Equipment
$
813,000
77,814
2,250
13,500
1,000
907,564
$
480,000
51,190
31,000
9,450
1,500
573,140
$
604,225
57,000
76,500
4,150
1,000
742,875
$
$
$
500
1,300
1,800
$
500
1,158
1,658
$
4,180,059
$
4,100,843
$
99,740
3,414
339,793
30,500
5,000
478,447
$
43,559
1,653
296,342
30,026
371,580
695,955
88,359
300
117,632
902,246
$
$
$
10,000
150
66,000
103,000
5,000
184,150
$
7,092
98
49,958
43,268
100,416
$
1,564,843
$
1,345,305
$
Psychological Services
Salaries
Employee Benefits
Purchased Services
Supplies and Materials
Non-Capitalized Equipment
$
$
Speech Pathology and Audiology Services
Salaries
Employee Benefits
Purchased Services
Supplies and Materials
Non-Capitalized Equipment
$
$
Other Support Services - Pupils
Purchased Services
Supplies and Materials
$
Total Support Services - Pupils
Instructional Staff
Improvement of Instruction Services
Salaries
Employee Benefits
Purchased Services
Supplies and Materials
Non-Capitalized Equipment
$
Educational Media Services
Salaries
Employee Benefits
Purchased Services
Supplies and Materials
Non-Capitalized Equipment
$
$
Assessment and Testing
Salaries
Employee Benefits
Purchased Services
Supplies and Materials
Non-Capitalized Equipment
$
Total Support Services - Instructional Staff
See Accompanying Independent Auditor's Report
- 54 -
Actual
Amounts
$
$
$
$
$
791,362
67,891
1,292
9,027
869,572
482,473
49,047
17,333
6,368
555,221
572,846
71,701
71,387
9,380
725,314
683,327
86,995
96
102,086
805
873,309
LAKE ZURICH COMMUNITY UNIT SCHOOL DISTRICT NO. 95
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES - BUDGET AND ACTUAL
GENERAL FUND - EDUCATIONAL FUND
YEAR ENDED JUNE 30, 2014
Budgeted Amounts
Original and Final
EXPENDITURES (Continued)
Support Services (Continued)
General Administration
Board of Education Services
Purchased Services
Supplies and Materials
Other Objects
$
423,500
12,000
21,000
456,500
$
256,000
53,170
3,200
2,750
6,000
321,120
$
$
$
383,000
116,720
31,000
8,000
2,000
540,720
$
387,863
108,232
44,266
5,750
576
546,687
$
$
606,000
606,000
$
$
622,884
622,884
$
1,924,340
$
1,801,553
$
$
$
2,810,073
861,639
13,200
23,938
8,800
3,717,650
$
2,822,573
814,462
2,227
21,945
14,977
6,110
3,682,294
$
3,717,650
$
3,682,294
$
164,500
45,320
11,000
2,000
222,820
$
164,440
44,975
19,208
78
1,785
230,486
162,000
48,960
307,750
85,000
11,000
75,000
689,710
$
$
Executive Administration Services
Salaries
Employee Benefits
Purchased Services
Supplies and Materials
Other Objects
$
$
Special Area Administration Services
Salaries
Employee Benefits
Purchased Services
Supplies and Materials
Other Objects
$
Tort Immunity Services
Purchased Services
Total Support Services - General Administration
School Administration
Office of the Principal Services
Salaries
Employee Benefits
Purchased Services
Supplies and Materials
Other Objects
Non-Capitalized Equipment
Total Support Services - School Administration
Business
Direction of Business Support Services
Salaries
Employee Benefits
Purchased Services
Supplies and Materials
Other Objects
$
Fiscal Services
Salaries
Employee Benefits
Purchased Services
Supplies and Materials
Other Objects
Non-Capitalized Equipment
$
$
See Accompanying Independent Auditor's Report
- 55 -
Actual
Amounts
$
$
$
$
292,941
11,676
12,239
316,856
259,920
47,300
1,683
2,305
3,918
315,126
155,215
40,249
138,535
23,916
1,590
859
360,364
LAKE ZURICH COMMUNITY UNIT SCHOOL DISTRICT NO. 95
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES - BUDGET AND ACTUAL
GENERAL FUND - EDUCATIONAL FUND
YEAR ENDED JUNE 30, 2014
Budgeted Amounts
Original and Final
EXPENDITURES (Continued)
Support Services (Continued)
Business (Continued)
Internal Services
Purchased Services
Actual
Amounts
$
$
1,000
1,000
$
$
2,040
2,040
Total Support Services - Business
$
913,530
$
592,890
Transportation
Purchased Services
Total Support Services - Transportation
$
$
34,500
34,500
$
$
8,040
8,040
$
1,575,000
10,000
25,000
2,500
5,000
1,617,500
$
1,636,698
7,785
2,242
3,361
1,650,086
722,000
121,195
51,500
500
1,500
896,695
$
132,700
25,540
54,000
22,000
750
1,000
235,990
$
358,125
331,111
90,750
8,000
8,000
795,986
$
$
$
942,000
147,525
192,000
348,500
2,500
1,144,700
2,777,225
$
918,264
134,345
159,842
465,368
35
1,227,725
2,905,579
$
4,705,896
$
4,789,740
Food Services
Purchased Services
Supplies and Materials
Other Objects
Non-Capitalized Equipment
Termination Benefits
Total Support Services - Food Services
$
Central
Planning, Research, Development and Evaluation Services
Salaries
Employee Benefits
Purchased Services
Supplies and Materials
Other Objects
$
$
Information Services
Salaries
Employee Benefits
Purchased Services
Supplies and Materials
Other Objects
Non-Capitalized Equipment
$
$
Staff Services
Salaries
Employee Benefits
Purchased Services
Supplies and Materials
Other Objects
$
$
Data Processing Services
Salaries
Employee Benefits
Purchased Services
Supplies and Materials
Other Objects
Non-Capitalized Equipment
$
Total Support Services - Central
See Accompanying Independent Auditor's Report
- 56 -
$
$
$
$
720,006
145,669
5,892
13,960
393
885,920
123,301
28,831
22,170
15,451
1,020
190,773
327,221
371,605
103,142
4,423
1,077
807,468
LAKE ZURICH COMMUNITY UNIT SCHOOL DISTRICT NO. 95
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES - BUDGET AND ACTUAL
GENERAL FUND - EDUCATIONAL FUND
YEAR ENDED JUNE 30, 2014
Budgeted Amounts
Original and Final
EXPENDITURES (Continued)
Support Services (Continued)
Other Support Services
Purchased Services
Total Other Support Services
Actual
Amounts
$
$
30,660
30,660
$
$
5,583
5,583
$
18,688,978
$
17,976,334
$
17,500
658
45,512
11,200
74,870
$
16,707
933
39,670
11,493
68,803
$
$
5,313
5,313
$
5,313
131
5,444
$
5,313
$
5,444
$
293,500
$
253,365
$
1,127,000
1,420,500
$
858,308
1,111,673
$
1,425,813
$
1,117,117
$
16,470
$
69,977
$
85,000
300,000
401,470
$
200,778
270,755
Provision for Contingencies
$
65,000
$
On-Behalf Payments
$
10,748,593
$
13,777,997
Total Expenditures
$
72,981,587
$
73,544,710
EXCESS OR (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
$
2,946,155
$
4,919,961
Total Support Services
Community Services
Salaries
Employee Benefits
Purchased Services
Supplies and Materials
Total Community Services
$
Payments to Other Districts and Governmental Units
Payments to Other Districts and Governmental Units (In-State)
Other Payments to In-State Governmental Units
Purchased Services
Other Objects
Total Payments to Other Districts and Governmental Units (In-State)
Payments to Other Districts and Governmental Units-Tuition (In-State)
Payments for Regular Programs
Other Objects
Payments for Special Education Programs
Other Objects
Total Payments to Other Districts and Governmental Units-Tuition (In-State)
Total Payments to Other Districts and Governmental Units
Capital Outlay
Instruction
Other Instructional Programs
Support Services
Business
Central
Total Capital Outlay
$
OTHER FINANCING SOURCES (USES)
Interfund Transfers
$
(256,695)
NET CHANGE IN FUND BALANCE
$
FUND BALANCE - JULY 1, 2013
2,689,460
(256,695)
$
30,935,539
FUND BALANCE - JUNE 30, 2014
$
See Accompanying Independent Auditor's Report
- 57 -
33,624,999
-
4,663,266
27,296,289
$
31,959,555
LAKE ZURICH COMMUNITY UNIT SCHOOL DISTRICT NO. 95
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES - BUDGET AND ACTUAL
GENERAL FUND - WORKING CASH FUND
YEAR ENDED JUNE 30, 2014
Budgeted Amounts
Original and Final
REVENUES
Property Taxes
Earnings on Investments
Other Local Sources
Total Revenues
$
$
EXPENDITURES
$
EXCESS OR (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
$
116,663
4,000
79,541
200,204
-
200,204
OTHER FINANCING SOURCES (USES)
Actual
Amounts
$
$
$
$
-
NET CHANGE IN FUND BALANCE
$
FUND BALANCE - JULY 1, 2013
200,204
$
2,416,889
See Accompanying Independent Auditor's Report
- 58 -
-
156,509
-
$
2,216,685
FUND BALANCE - JUNE 30, 2014
72,336
4,632
79,541
156,509
156,509
2,217,222
$
2,373,731
LAKE ZURICH COMMUNITY UNIT SCHOOL DISTRICT NO. 95
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES - BUDGET AND ACTUAL
DEBT SERVICES FUND
YEAR ENDED JUNE 30, 2014
Budgeted Amounts
Original and Final
REVENUES
Property Taxes
Earnings on Investments
Total Revenues
$
Actual
Amounts
$
$
7,658,418
10,000
7,668,418
$
7,773,117
11,562
7,784,679
$
$
1,032,552
1,032,552
$
$
1,032,552
1,032,552
Debt Services - Payment of Principal on Long-Term Debt
Other Objects
Total Debt Services - Payment of Principal on Long-Term Debt
$
$
6,851,943
6,851,943
$
$
6,851,943
6,851,943
Debt Services - Other
Purchased Services
Total Debt Services - Other
$
$
4,800
4,800
$
$
3,564
3,564
$
7,889,295
$
7,888,059
Total Expenditures
$
7,889,295
$
7,888,059
EXCESS OR (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
$
EXPENDITURES
Debt Services
Interest
Other Interest on Long-Term Debt
Other Objects
Total Debt Services - Interest
Total Debt Services
OTHER FINANCING SOURCES (USES)
Interfund Transfers
(220,877)
$
241,695
NET CHANGE IN FUND BALANCE
$
FUND BALANCE - JULY 1, 2013
20,818
248,673
$
6,866,335
FUND BALANCE - JUNE 30, 2014
$
6,887,153
See Accompanying Independent Auditor's Report
- 59 -
(103,380)
145,293
6,845,107
$
6,990,400
LAKE ZURICH COMMUNITY UNIT SCHOOL DISTRICT NO. 95
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES - BUDGET AND ACTUAL
CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2014
Budgeted Amounts
Original and Final
REVENUES
Earnings on Investments
Other Local Sources
Total Revenues
$
Actual
Amounts
$
50
18,000
18,050
$
116
23,752
23,868
EXPENDITURES
$
-
$
-
EXCESS OR (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
$
18,050
$
23,868
OTHER FINANCING SOURCES (USES)
$
-
NET CHANGE IN FUND BALANCE
$
FUND BALANCE - JULY 1, 2013
18,050
$
45,846
FUND BALANCE - JUNE 30, 2014
$
63,896
See Accompanying Independent Auditor's Report
- 60 -
23,868
45,846
$
69,714
LAKE ZURICH COMMUNITY UNIT SCHOOL DISTRICT NO. 95
SCHEDULE OF CHANGES IN FIDUCIARY ASSETS AND LIABILITIES
ACTIVITY FUNDS
YEAR ENDED JUNE 30, 2014
BALANCE
JULY 1, 2013
ADDITIONS
DEDUCTIONS
BALANCE
JUNE 30, 2014
ASSETS
Cash and Cash Equivalents
$
482,155
$
512,255
$
862,378
$
$
41
121,578
193
62
29,456
21
192
23,482
6,830
40,411
4,988
3,640
264
3,867
1,158
173
879
131
(110)
4,205
264
2,856
6
3,056
5,740
556
2,498
463
853
1,129
1,013
3,873
-
$
283,608
4,866
353
24,858
7,168
22,072
60,519
23,745
3,293
8,032
13,470
4,850
825
679
163
1,343
548
1,296
3,828
520
2,067
207
5,357
11,694
2,386
5,415
460
4,888
390
3,942
450
6,957
2,006
$
388,641
4,866
246
21,977
36,624
192
6,830
42,690
55,771
1,075
930
8,296
13,233
6,008
804
553
369
1,148
526
890
4,162
608
3,171
207
3,822
12,044
2,365
6,863
655
3,800
405
3,937
619
6,173
3,491
$
132,032
LIABILITIES
Amount Due to Activity
Lake Zurich High School
Astronomy Club
Band
Bear Facts
Buddy Project
Charity Week Money
Cheerleading
Chess Club
Choir
Class of '12
Class of '13
Class of '14
Class of '15
Class of '16
Class of '17
Color Guard
Drama Club
Elyte
Fashion Club
Fine & Applied Arts
FACS
French Club
Gay-Straight Alliance
General Fund
German Club
Habitat for Humanity
Italian Club
LZHS FBLA
Math Team
National Honor
Orchesis
PE Leadership
Pommies
Scholastic Bowl
Science
Science Club
Ski Club
Spanish Club
Student Council
Technology Club
Tech Theatre Crew
Middle School North
6th Grade
7th Grade
2,265
939
-
See Accompanying Independent Auditor's Report
- 61 -
2,265
939
41
16,545
300
2,943
21
23,482
19,793
9,736
26,310
2,363
4,104
173
21
126
673
326
22
296
3,871
176
1,752
6
4,591
5,390
577
1,050
268
1,088
838
5
960
1,797
3,873
(1,485)
-
LAKE ZURICH COMMUNITY UNIT SCHOOL DISTRICT NO. 95
SCHEDULE OF CHANGES IN FIDUCIARY ASSETS AND LIABILITIES
ACTIVITY FUNDS
YEAR ENDED JUNE 30, 2014
BALANCE
JULY 1, 2013
ADDITIONS
DEDUCTIONS
BALANCE
JUNE 30, 2014
$
$
LIABILITIES
Amount Due to Activity (Continued)
Middle School North (Continued)
8th Grade
Athletic
Band
Book Replacement
Chorus
Drama
General
Home Ec
Library Fund
NFF
Orchestra
Pop
Ski/Adventure Club
Student Council
Middle School South
6th Grade
7th Grade
8th Grade
6-8 Grade Team Building
Am. Red Cross
Athletics
Band
Book Replacement
Bowling Club
Cheerleading
Drama
Fitness Center
Home Ec
In/Out
Orchestra
Pop/Coke
Scholarship Fund
Ski Trip
Student Acct. Chorus
Student Acct. Band
Student Council
Wrestling
Sarah Adams
Birthday Book Club
Erika Meyer Fund
Field Trips
LMC
Sales
Staff Sunshine
Student Activities
Seth Paine
Band
$
728
13,245
3,653
2,851
1,942
15,112
4,608
379
268
4,090
7,230
86
475
4,811
$
-
728
13,245
3,653
2,851
1,942
15,112
4,608
379
268
4,090
7,230
86
475
4,811
-
13
32
1
21
7
2,027
2,545
95
36
442
22,207
244
102
10,962
3,758
6,934
10,180
513
4,077
2,564
652
823
-
13
32
1
21
7
2,027
2,545
95
36
442
22,207
244
102
10,962
3,758
6,934
10,180
513
4,077
2,564
652
823
-
786
1,822
2,442
15
2,849
1,666
1,797
-
786
1,822
2,442
15
2,849
1,666
1,797
-
545
-
545
-
See Accompanying Independent Auditor's Report
- 62 -
LAKE ZURICH COMMUNITY UNIT SCHOOL DISTRICT NO. 95
SCHEDULE OF CHANGES IN FIDUCIARY ASSETS AND LIABILITIES
ACTIVITY FUNDS
YEAR ENDED JUNE 30, 2014
BALANCE
JULY 1, 2013
ADDITIONS
DEDUCTIONS
BALANCE
JUNE 30, 2014
$
$
LIABILITIES
Amount Due to Activity (Continued)
Seth Paine (Continued)
General
Music
Pop
Reading Lab
Field Trip
Student Assistance
May Whitney
Birthday Book Club
Field Trips
Gen. (Principal's Discretion
In/Out
Library Media Center
Student Council
Isaac Fox
Art Club
Assignment Notebooks
Field Trip
Fox Classroom
Fundraiser - Other
Homework Club
Jayne Walsh Target Grant
Library
Misc Income - Principal
Music
Other Income
Scholarship (Savings)
Student Council
Student Subscriptions
Sunshine/Pop
Spencer Loomis
Band
Field Trips
5th Grade Fund
Gen. (Principal's Discretion)
Hailey's Garden
Library-Birthday Books
Student Council
$
$
8,412
718
933
761
146
2,424
$
-
8,412
718
933
761
146
2,424
-
2,572
592
7,437
17,339
108
5,573
-
2,572
592
7,437
17,339
108
5,573
-
25
2,374
364
393
45
848
602
1,637
3,089
4,629
12
9,690
375
771
211
-
25
2,374
364
393
45
848
602
1,637
3,089
4,629
12
9,690
375
771
211
-
66
1,527
381
301
978
140
75
-
66
1,527
381
301
978
140
75
-
482,155
$
512,255
$
See Accompanying Independent Auditor's Report
- 63 -
862,378
$
132,032
LAKE ZURICH COMMUNITY UNIT SCHOOL DISTRICT NO. 95
COMPUTATION OF OPERATING EXPENSE PER PUPIL AND
PER CAPITA TUITION CHARGE
YEAR ENDED JUNE 30, 2014
OPERATING EXPENSE PER PUPIL
EXPENDITURES:
ED
Total Expenditures
O&M
Total Expenditures
7,844,508
DS
Total Expenditures
7,888,059
$
59,766,713
TR
Total Expenditures
8,206,802
MR/SS
Total Expenditures
1,728,449
Total Expenditures
$
85,434,531
LESS RECEIPTS/REVENUES OR DISBURSEMENTS/EXPENDITURES NOT APPLICABLE TO THE REGULAR K-12 PROGRAM:
TR
Regular - Transp Fees from Other Districts (In State)
ED
Special Education Programs Pre-K
$
479,216
637
ED
Summer School Programs
339,272
ED
Regular K-12 Programs - Private Tuition
ED
Special Education Programs K-12 - Private Tuition
ED
Special Education Programs Pre-K - Tuition
ED
Community Services
2,026
1,803,354
1,409
68,803
ED
Total Payments to Other District & Govt Units
ED
Capital Outlay
ED
Non-Capitalized Equipment
1,366,100
O&M
Capital Outlay
2,019,889
O&M
DS
Non-Capitalized Equipment
Debt Service - Payments of Principal on Long-Term Debt
6,851,943
4,732,822
1,117,117
270,755
54,949
TR
Capital Outlay
MR/SS
Special Education Programs - Pre-K
34,539
MR/SS
Summer School Programs
11,003
MR/SS
Community Services
MR/SS
Total Payments to Other Dist & Govt Units
2,823
10,312
Total Deductions $
19,166,969
Total Operating Expenses (Regular K-12) $
66,267,562
9 Mo ADA (See the General State Aid Claim for 2010-2011 (ISBE 54-33, L12)
5,391.72
Estimated OEPP $
12,290.62
$
21,073
PER CAPITA TUITION CHARGE
LESS OFFSETTING RECEIPTS/REVENUES:
TR
Regular -Transp Fees from Pupils or Parents (In State)
TR
Regular - Transp Fees from Co-curricular Activities (In State)
ED
Total Food Service
1,640,225
ED-O&M
Total District/School Activity Income
1,675,105
ED
Rentals - Regular Textbooks
80
ED
Sales - Other (Describe & Itemize)
70
ED
Other (Describe & Itemize)
ED-O&M
Rentals
91,593
51,457
326,359
ED-O&M-TR
Total Special Education
ED-O&M-MR/SS
Total Career and Technical Education
27,194
ED-MR/SS
Total Bilingual Ed
47,754
ED
State Free Lunch & Breakfast
ED-O&M
Driver Education
2,422,639
3,269
33,603
ED-O&M-TR-MR/SS
Total Transportation
ED-O&M-DS-TR-MR/SS-Tort
Other Restricted Revenue from State Sources
307,629
ED-MR/SS
Total Food Service
145,673
ED-O&M-TR-MR/SS
Total Title I
218,349
ED-O&M-TR-MR/SS
Fed - Spec Education - IDEA - Flow Through/Low Incidence
931,272
ED-O&M-TR-MR/SS
Fed - Spec Education - IDEA - Room & Board
29,210
ED-O&M-MR/SS
Total CTE - Perkins
17,534
ED-TR-MR/SS
Title III - English Language Acquisition
25,554
ED-O&M-TR-MR/SS
Title II - Teacher Quality
82,164
ED-O&M-TR-MR/SS
Medicaid Matching Funds - Administrative Outreach
43,745
ED-O&M-TR-MR/SS
Medicaid Matching Funds - Fee-for-Service Program
115,883
2,145,772
$
10,403,206
Net Operating Expense for PCTC Computation $
Total Allowance for PCTC Computation
55,864,356
Total Depreciation Allowance (from page 27, Col I)
$
4,099,974
Total Allowance for PCTC Computation $
59,964,330
9 Mo ADA
Total Estimated PCTC $
Unaudited
- 64 -
5,391.72
11,121.56
ANNUAL FEDERAL FINANCIAL COMPLIANCE SECTION
EDER, CASELLA & CO.
A PROFESSIONAL CORPORATION
CERTIFIED PUBLIC ACCOUNTANTS
———
cpas@edercasella.com
www.edercasella.com
5400 West Elm Street, Suite 203
McHenry, Illinois 60050
Telephone: (815) 344-1300
Fax: (815) 344-1320
509 West Old Northwest Highway, Suite 102
Barrington, Illinois 60010
Telephone: (847) 382-3366
Fax: (847) 382-0608
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR
PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE
REQUIRED BY OMB CIRCULAR A-133
To the Board of Education
Lake Zurich Community Unit School District No. 95
Lake Zurich, Illinois
Report on Compliance for Each Major Federal Program
We have audited
Lake Zurich Community Unit School District No. 95’s
compliance with the types of compliance requirements described in the OMB Circular A-133
Compliance Supplement that could have a direct and material effect on each of Lake Zurich Community
Unit School District No. 95’s major federal programs for the year ended June 30, 2014. Lake Zurich
Community Unit School District No. 95’s major federal programs are identified in the summary of
auditor’s results section of the accompanying Schedule of Findings and Questioned Costs.
Management’s Responsibility
Management is responsible for compliance with the requirements of laws, regulations, contracts, and
grants applicable to its federal programs.
Auditor’s Responsibility
Our responsibility is to express an opinion on compliance for each of Lake Zurich Community Unit
School District No. 95’s major federal programs based on our audit of the types of compliance
requirements referred to above. We conducted our audit of compliance in accordance with auditing
standards generally accepted in the United States of America; the standards applicable to financial
audits contained in Government Auditing Standards, issued by the Comptroller General of the United
States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations.
Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain
reasonable assurance about whether noncompliance with the types of compliance requirements
referred to above that could have a direct and material effect on a major federal program occurred. An
audit includes examining, on a test basis, evidence about Lake Zurich Community Unit School District
No. 95’s compliance with those requirements and performing such other procedures as we considered
necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major
federal program. However, our audit does not provide a legal determination of Lake Zurich Community
Unit School District No. 95’s compliance.
Opinion on Each Major Federal Program
In our opinion, Lake Zurich Community Unit School District No. 95, complied, in all material respects,
with the types of compliance requirements referred to above that could have a direct and material effect
on each of its major federal programs for the year ended June 30, 2014.
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Other Matters
The results of our auditing procedures disclosed an instance of noncompliance, which is required to be
reported in accordance with OMB Circular A-133 and which is described in the accompanying Schedule
of Findings and Questioned Costs as item 2014-001. Our opinion on each major federal program is not
modified with respect to this matter.
Lake Zurich Community Unit School District No. 95’s response to the noncompliance finding identified
in our audit is described in the accompanying Schedule of Findings and Questioned Costs. Lake
Zurich Community Unit School District No. 95’s response was not subjected to the auditing procedures
applied in the audit of compliance and, accordingly, we express no opinion on the response.
Report on Internal Control Over Compliance
Management of Lake Zurich Community Unit School District No. 95 is responsible for establishing and
maintaining effective internal control over compliance with the types of compliance requirements
referred to above. In planning and performing our audit of compliance, we considered Lake Zurich
Community Unit School District No. 95’s internal control over compliance with the types of requirements
that could have a direct and material effect on each major federal program to determine the auditing
procedures that are appropriate in the circumstances for the purpose of expressing an opinion on
compliance for each major federal program and to test and report on internal control over compliance in
accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the
effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the
effectiveness of Lake Zurich Community Unit School District No. 95’s internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their
assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance
requirement of a federal program on a timely basis. A material weakness in internal control over
compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that
there is a reasonable possibility that material noncompliance with a type of compliance requirement of a
federal program will not be prevented, or detected and corrected, on a timely basis. A significant
deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in
internal control over compliance with a type of compliance requirement of a federal program that is less
severe than a material weakness in internal control over compliance, yet important enough to merit
attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over
compliance that might be material weaknesses or significant deficiencies. We did not identify any
deficiencies in internal control over compliance that we consider to be material weaknesses. However,
material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of
OMB Circular A-133. Accordingly, this report is not suitable for any other purpose.
EDER, CASELLA & CO.
Certified Public Accountants
McHenry, Illinois
September 25, 2014
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LAKE ZURICH COMMUNITY UNIT SCHOOL DISTRICT NO. 95
34-049-0950-26
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year Ending June 30, 2014
Federal Grantor/Pass-Through Grantor/
Program or Cluster Title and
Major Program Designation
CFDA
2
Number
(A)
ISBE Project #
(1st 8 digits)
or Contract #3
(B)
Receipts/Revenues
Year
Year
7/1/12-6/30/13
7/1/13-6/30/14
(C)
(D)
10.555
13-4210-00
19,059
10.555
14-4210-00
126,614
Expenditure/Disbursements4
Year
Year
7/1/12-6/30/13
7/1/13-6/30/14
(E)
(F)
Obligations/
Encumb.
(G)
Final
Status
(H)
Budget
19,059
19,059
N/A
126,614
126,614
N/A
(I)
U.S. Department of Agriculture Passed Through Illinois State
Board of Education:
National School Lunch Program
National School Lunch Program (1)
Subtotal - CFDA "10"
0
145,673
0
145,673
0
145,673
160,142
24,446
160,142
24,446
184,588
193,903
193,903
341,525
26,042
938,477
1,180,770
1,286,200
1,286,200
12,881
36,947
N/A
16,329
16,329
N/A
U.S. Department of Education Passed Through Illinois State
Board of Education:
Title I - Low Income
Title I - Low Income (2)
Special Education - Grants to States (M)
Special Education - Grants to States (M)
Special Education - I.D.E.A. - Room and Board (M)
Special Education - I.D.E.A. - Room and Board (2) (M)
84.010
13-4300-00
84.010
14-4300-00
84.027
13-4620-00
84.027
14-4620-00
84.027
13-4625-00
84.027
14-4625-00
193,903
912,435
26,042
912,435
905,230
24,066
12,881
16,329
905,230
24,066
• (M) Program was audited as a major program as defined by OMB Circular A-133.
The accompanying notes are an integral part of this schedule.
1
2
3
4
To meet state or other requirements, auditees may decide to include certain nonfederal awards (for example, state awards) in this schedule. If such nonfederal data are presented,
they should be segregated and clearly designated as nonfederal. The title of the schedule should also be modified to indicate that nonfederal awards are included.
When the CFDA number is not available, the auditee should indicate that the CFDA number is not available and include in the schedule the program's name and, if applicable,
other identifying number.
When awards are received as a subrecipient, the identifying number assigned by the pass-through entity should be included in the schedule.
Circular A-133 requires that the value of federal awards expended in the form of non-cash assistance, the amount of insurance in effect during the year, and loans or loan guarantees
outstanding at year end be included in either the schedule or a note to the schedule. Although it is not required, Circular A-133 states that it is preferable to present this information in
the schedule (versus the notes to the schedule). If the auditee presents non-cash assistance in the notes to the schedule, the auditor should be aware that such amounts must
still be included in part III of the data collection form.
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380,970
239,366
LAKE ZURICH COMMUNITY UNIT SCHOOL DISTRICT NO. 95
34-049-0950-26
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year Ending June 30, 2014
Federal Grantor/Pass-Through Grantor/
Program or Cluster Title and
Major Program Designation
CFDA
2
Number
(A)
ISBE Project #
(1st 8 digits)
or Contract #3
(B)
84.173
13-4600-00
84.173
14-4600-00
84.365
13-4909-00
84.365
14-4909-00
84.367
14-4932-00
84.048
14-4745-00
Receipts/Revenues
Year
Year
7/1/12-6/30/13
7/1/13-6/30/14
(C)
(D)
Expenditure/Disbursements4
Year
Year
7/1/12-6/30/13
7/1/13-6/30/14
(E)
(F)
Obligations/
Encumb.
(G)
Final
Status
(H)
Budget
18,868
24,592
16,858
40,100
4,379
26,843
30,780
21,175
21,175
21,175
34,387
82,164
82,164
82,164
89,821
17,534
17,534
(I)
U.S. Department of Education Passed Through Illinois State
Board of Education (continued):
Special Education - Preschool Grants (M)
Special Education - Preschool Grants (M)
Title III - Lang Inst Prog - Limited English LIPLEP
Title III - Lang Inst Prog - Limited English LIPLEP (2)
Title II - Teacher Quality (2)
6,898
11,970
6,898
13,339
22,464
4,379
11,970
13,339
22,464
3,519
U.S. Department of Education Passed Through Lake County
Area Vocational System:
V.E. - Perkins - Title IIC - Secondary
Subtotal - CFDA "84"
17,534
1,126,005
1,329,392
17,534
1,126,005
1,329,392
• (M) Program was audited as a major program as defined by OMB Circular A-133.
The accompanying notes are an integral part of this schedule.
1
2
3
4
To meet state or other requirements, auditees may decide to include certain nonfederal awards (for example, state awards) in this schedule. If such nonfederal data are presented,
they should be segregated and clearly designated as nonfederal. The title of the schedule should also be modified to indicate that nonfederal awards are included.
When the CFDA number is not available, the auditee should indicate that the CFDA number is not available and include in the schedule the program's name and, if applicable,
other identifying number.
When awards are received as a subrecipient, the identifying number assigned by the pass-through entity should be included in the schedule.
Circular A-133 requires that the value of federal awards expended in the form of non-cash assistance, the amount of insurance in effect during the year, and loans or loan guarantees
outstanding at year end be included in either the schedule or a note to the schedule. Although it is not required, Circular A-133 states that it is preferable to present this information in
the schedule (versus the notes to the schedule). If the auditee presents non-cash assistance in the notes to the schedule, the auditor should be aware that such amounts must
still be included in part III of the data collection form.
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384,489
2,839,886
LAKE ZURICH COMMUNITY UNIT SCHOOL DISTRICT NO. 95
34-049-0950-26
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year Ending June 30, 2014
Federal Grantor/Pass-Through Grantor/
Program or Cluster Title and
Major Program Designation
CFDA
2
Number
(A)
ISBE Project #
(1st 8 digits)
or Contract #3
(B)
93.778
13-4991-00
93.778
14-4991-00
Receipts/Revenues
Year
Year
7/1/12-6/30/13
7/1/13-6/30/14
(C)
(D)
Expenditure/Disbursements4
Year
Year
7/1/12-6/30/13
7/1/13-6/30/14
(E)
(F)
Obligations/
Encumb.
(G)
Final
Status
(H)
Budget
6,826
44,312
N/A
36,919
36,919
N/A
(I)
U.S. Department of Health and Human Services Passed
Through Illinois Dept. of Healthcare & Family Services:
Medicaid Matching Funds - Administrative Outreach
Medicaid Matching Funds - Administrative Outreach
Subtotal - CFDA "93"
Total Federal Assistance
37,486
6,826
37,486
36,919
37,486
43,745
37,486
43,745
0
81,231
1,163,491
1,518,810
1,163,491
1,518,810
384,489
3,066,790
(1) - Project end date is 9/30/14
(2) - Project end date is 8/31/14
• (M) Program was audited as a major program as defined by OMB Circular A-133.
The accompanying notes are an integral part of this schedule.
1
2
3
4
To meet state or other requirements, auditees may decide to include certain nonfederal awards (for example, state awards) in this schedule. If such nonfederal data are presented,
they should be segregated and clearly designated as nonfederal. The title of the schedule should also be modified to indicate that nonfederal awards are included.
When the CFDA number is not available, the auditee should indicate that the CFDA number is not available and include in the schedule the program's name and, if applicable,
other identifying number.
When awards are received as a subrecipient, the identifying number assigned by the pass-through entity should be included in the schedule.
Circular A-133 requires that the value of federal awards expended in the form of non-cash assistance, the amount of insurance in effect during the year, and loans or loan guarantees
outstanding at year end be included in either the schedule or a note to the schedule. Although it is not required, Circular A-133 states that it is preferable to present this information in
the schedule (versus the notes to the schedule). If the auditee presents non-cash assistance in the notes to the schedule, the auditor should be aware that such amounts must
still be included in part III of the data collection form.
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LAKE ZURICH COMMUNITY UNIT SCHOOL DISTRICT NO. 95
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2014
NOTE 1 - BASIS OF PRESENTATION
The accompanying Schedule of Expenditures of Federal Awards includes the federal grant
activity of Lake Zurich Community Unit School District No. 95 and is presented on the
modified accrual basis of accounting. The information in this Schedule is presented in
accordance with requirements of the OMB Circular A-133, Audits of States, Local
Governments, and Non-Profit Organizations. Therefore, some amounts presented in this
schedule may differ from amounts presented in, or used in the preparation of, the basic
financial statements.
NOTE 2- SUBRECIPIENTS
The District did not provide federal awards to subrecipients during the year ended
June 30, 2014.
NOTE 3 - NON-CASH ASSISTANCE, INSURANCE, AND LOANS
Non-cash assistance is reported in the Schedule of Expenditures of Federal Awards at the
fair market value of the commodities received and disbursed. During the year ended
June 30, 2014, the District did not receives or disburse food commodities.
There was no federal insurance in effect during the year, nor any federal loans or loan
guarantees outstanding at year end.
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LAKE ZURICH COMMUNITY UNIT SCHOOL DISTRICT NO. 95
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 30, 2014
1)
Summary of auditor’s results:
a)
The auditor’s report expresses an unmodified opinion on the financial statements of Lake
Zurich Community Unit School District No. 95.
b)
No significant deficiencies or material weaknesses were disclosed during the audit of the
financial statements.
c)
No instances of noncompliance material to the financial statements of Lake Zurich
Community Unit School District No. 95, which would be required to be reported in
accordance with Government Auditing Standards, were disclosed during the audit.
d)
No significant deficiencies or material weaknesses in internal control over major programs
were disclosed by the audit.
e)
The auditor’s report on compliance for the major federal award programs for Lake Zurich
Community Unit School District No. 95 expresses as unmodified opinion on all major
federal programs.
f)
The audit disclosed one audit finding which the auditor is required to report.
g)
The programs tested as major programs included: CFDA numbers 84.027 and 84.173 –
Special Education Cluster.
h)
The threshold used for distinguishing between Type A and Type B programs was
$300,000.
i)
Lake Zurich Community Unit School District No. 95 does not qualify as a low-risk auditee.
2)
There were no findings relating to the financial statements which are required to be reported.
3)
A finding relating to federal awards which is required to be reported is detailed in finding number
2014-001.
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LAKE ZURICH COMMUNITY UNIT SCHOOL DISTRICT NO. 95
34-049-0950-26
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ending June 30, 2014
SECTION II - FINANCIAL STATEMENT FINDINGS
11
2014- N/A
1. FINDING NUMBER:
2. THIS FINDING IS:
New
Repeat from Prior Year?
Year originally reported?
3. Criteria or specific requirement
4. Condition
5. Context12
6. Effect
7. Cause
8. Recommendation
9. Management's response
13
For ISBE Review
Date:
Resolution Criteria Code Number
Initials:
Disposition of Questioned Costs Code Letter
11
A suggested format for assigning reference numbers is to use the digits of the fiscal year being audited followed by a numeric
sequence of findings. For example, findings identified and reported in the audit of fiscal year 2014 would be assigned a reference
number of 2014-001, 2014-002, etc. The sheet is formatted so that only the number need be entered (1, 2, etc.).
12
Provide sufficient information for judging the prevalence and consequences of the finding, such as relation to universe of costs and/or
number of items examined and quantification of audit findings in dollars.
13
See paragraphs 5.18 through 5.20 and 7.38 through 7.42 of Government Auditing Standards for additional guidance on reporting
management's response.
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LAKE ZURICH COMMUNITY UNIT SCHOOL DISTRICT NO. 95
34-049-0950-26
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ending June 30, 2014
SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
1. FINDING NUMBER:14
2014- 001
2. THIS FINDING IS:
x
New
Repeat from Prior year?
Year originally reported?
3. Federal Program Name and Year:
4. Project No.:
6. Passed Through:
7. Federal Agency:
SPECIAL EDUCATION - PRESCHOOL GRANTS 2014
14-4600-00
5. CFDA No.:
84.173
ILLINOIS STATE BOARD OF EDUCATION
DEPARTMENT OF EDUCATION
8. Criteria or specific requirement (including statutory, regulatory, or other citation)
The District is required to report grant expenditures under only one grant program.
9. Condition15
The District reported the grant expenditures obligated under the 2013 program year that were paid for in fiscal year 2014 on
both the 2013 and 2014 program year expenditure reports.
10. Questioned Costs16
This finding results in questioned costs of $11,970, which is the total amount of the expenditures reported under both
program years.
11. Context17
$11,970 of the $25,309 in Special Education - Preschool Grants reported on the program year 2014 expenditure reports
were also reported on program year 2013 expenditure reports.
12. Effect
The District overstated its expenditures for the 2014 program year by $11,970.
13. Cause
The District did not have adequate controls over the reporting of expenditures.
14. Recommendation
The District should review its procedures for preparing expenditure reports. In addition, the District should repay the $11,970
that was reimbursed twice.
15. Management's response18
The District will review its procedures and will contact the State to begin the repayment process.
For ISBE Review
Date:
Resolution Criteria Code Number
Initials:
Disposition of Questioned Costs Code Letter
14
15
16
17
18
See footnote 11.
Include facts that support the deficiency identified on the audit finding.
Identify questioned costs as required by sections 510(a)(3) and 510 (a) (4) of Circular A-133.
See footnote 12.
To the extent practical, indicate when management does not agree with the finding, questioned cost, or both.
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LAKE ZURICH COMMUNITY UNIT SCHOOL DISTRICT NO. 95
34-049-0950-26
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS19
Year Ending June 30, 2014
Finding Number
Current Status
Condition
20
13-001
During the course of our audit, material
Corrective action was taken
misstatements of the financial records were found,
resulting in adjusting entries.
13-002
The District failed to comply with the Davis-Bacon The District has not received any communications from
Act.
the Department of Education regarding this finding.
When possible, all prior findings should be on the same page
See the instructions in the Guide to Auditing and Reporting for Illinois Public Local Education Agencies for an
19
20
explanation of this schedule.
Current Status should include one of the following:
• A statement that corrective action was taken
• A description of any partial or planned corrective action
• An explanation if the corrective action taken was significantly different from that previously reported
or in the management decision received from the pass-through entity.
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LAKE ZURICH COMMUNITY UNIT SCHOOL DISTRICT NO. 95
34-049-0950-26
21
CORRECTIVE ACTION PLAN FOR CURRENT YEAR AUDIT FINDINGS
Year Ending June 30, 2014
Corrective Action Plan
Finding No.:
2014-
001
Condition:
The District reported the grant expenditures obligated under the 2013 program year that were paid for in fiscal year 2014 on
both the 2013 and 2014 program year expenditure reports.
Plan:
Management plans to contact the State in order to repay the questioned costs and will review its controls over the
preparation of expenditure reports.
Anticipated Date of Completion:
6/30/2015
Name of Contact Person:
Vicky Cullinan, Assistant Superintendent of Business and Operations
Management Response:
N/A
21
See the instructions in the Guide to Auditing and Reporting for Illinois Public Local Education Agencies for an
explanation of this schedule.
- 75 -