Comprehensive Annual Financial Report 2017
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T OWNSHIP HIGH SCHOOL DISTRICT 214 Arlington Heights, IL A Comprehensive Annual Financial Report As Of And For The Year Ended June 30, 2017 T OWNSHIP HIGH SCHOOL DISTRICT 214 Arlington Heights, IL A Comprehensive Annual Financial Report As Of And For the Year Ended June 30, 2017 Officials Issuing Report Cathy Johnson Associate Superintendent for Finance & Operations Sherry Koerner Director of Business Services Business Office of Township High School District 214 TOWNSHIP HIGH SCHOOL DISTRICT 214 TABLE OF CONTENTS AS OF AND FOR THE YEAR ENDED JUNE 30, 2017 Page(s) Introductory Section Transmittal Letter i - xxiii ASBO Certificate xxiv Organizational Chart xxv Principal Officers and Advisors xxvi Building Information xxvii Financial Section Independent Auditors' Report 1 - 3 Required Supplementary Information Management's Discussion and Analysis (MD&A) - Unaudited 4 - 13 Basic Financial Statements Government-Wide Financial Statements Statement of Net Position 14 Statement of Activities 15 Fund Financial Statements Balance Sheet - Governmental Funds 16 - 17 Reconciliation of the Governmental Funds - Balance Sheet to the Statement of Net Position 18 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 19 - 20 Reconciliation of the Governmental Funds - Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities 21 Statement of Fiduciary Assets and Liabilities - Agency Fund 22 Notes to Basic Financial Statements 23 - 50 Required Supplementary Information Illinois Municipal Retirement Fund - Schedule of Changes in the District's Net Pension Liability and Related Ratios 51 Illinois Municipal Retirement Fund - Schedule of District Contributions 52 Teachers' Retirement System - Schedule of the District's Proportionate Share of the Collective Net Pension Liability and Schedule of District Contributions 53 Schedule of Funding Progress For Health Benefit Plan 54 TOWNSHIP HIGH SCHOOL DISTRICT 214 TABLE OF CONTENTS AS OF AND FOR THE YEAR ENDED JUNE 30, 2017 Page(s) Required Supplementary Information - (Continued) General and Major Special Revenue Funds - Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget to Actual General Fund - Non-GAAP Budgetary Basis 55 - 64 Operations and Maintenance Fund 65 - 66 Transportation Fund 67 Municipal Retirement/Social Security Fund 68 - 69 Notes to Required Supplementary Information 70 Supplementary Information Major Debt Service and Major Capital Projects Funds - Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget to Actual Debt Service Fund 71 - 72 Capital Projects Fund 73 General Fund - Combining Balance Sheet 74 General Fund - Combining Schedule of Revenues, Expenditures and Changes in Fund Balances 75 General Fund Accounts - Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget to Actual Educational Accounts - Non-GAAP Budgetary Basis 76 - 85 Working Cash Accounts 86 Schedule of Changes in Assets and Liabilities - Agency Fund 87 Schedule of Bonds Outstanding - May 10, 2007 Issue 88 Schedule of Bonds Outstanding - July 30, 2008 Issue 89 Schedule of Debt Certificates Outstanding - December 8, 2009B Series Issue 90 Schedule of Bonds Outstanding - December 1, 2011 Series Issue 91 Schedule of Bonds Outstanding - February 9, 2012 Series Issue 92 Schedule of Bonds Outstanding - November 21, 2016 Series Issue 93 Statistical Section Net Position by Component 94 - 95 Changes in Net Position 96 - 97 Fund Balances of Governmental Funds 98 - 99 Governmental Funds Revenues 100 - 101 Governmental Funds Expenditures and Debt Service Ratio 102 - 103 TOWNSHIP HIGH SCHOOL DISTRICT 214 TABLE OF CONTENTS AS OF AND FOR THE YEAR ENDED JUNE 30, 2017 Page(s) Statistical Section - (Continued) Other Financing Sources and Uses and Net Change in Fund Balances 104 - 105 Assessed Valuation and Estimated Actual Value of Taxable Property 106 - 107 Property Tax Rates - All Direct and Overlapping Governments 108 - 109 Principal Property Taxpayers in the District 110 Property Tax Levies and Collections 111 Ratio of Outstanding Debt by Type 112 - 113 Computation of Direct and Overlapping Debt 114 Legal Debt Margin Information 115 - 116 Demographic and Economic Statistics 117 Principal Employers 118 Number of Employees by Type 119 - 120 Operating Indicators by Function 121 - 122 School Building Information 123 - 124 Miscellaneous Statistics 125 October 3, 2017 Community Members and Board of Education Township High School District 214 Arlington Heights IL 60005 The Comprehensive Annual Financial Report (CAFR) of Township High School District 214, Cook County, Illinois, as of and for the year ended June 30, 2017, is submitted herewith. Responsibility for the accuracy, completeness, and fairness of the presentation, including all disclosures, rests with the District. We believe the data, as presented, is accurate in all material aspects and represents the financial position and results of operations of the District as shown by the disclosure of all financial activity of its various funds; and that all disclosures necessary for public understanding of the District’s financial status have been incorporated within this report. Management’s Discussion and Analysis (MD&A) immediately follows the independent auditors’ report and provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A complements this letter for transmittal and should be read in conjunction with it. The CAFR includes all funds of the District and is presented in three sections: introductory, financial, and statistical. The introductory section includes this transmittal letter, the District’s organization chart, and a list of principal officers and elected officials. The financial section includes the independent auditor’s report on financial statements and schedules, MD&A, basic financial statements, and required supplemental information such as the individual fund financial statements and schedules. The statistical section includes selected financial and demographic information, generally presented on a multi-year basis. Mission and Vision Our primary mission is to help all students learn the skills, acquire the knowledge, and develop the behaviors necessary for them to reach their full potential as citizens who can meet the challenges of a changing society. Our secondary mission is to provide residents with opportunities for lifelong learning. The District 214 vision embraces continuous improvement and includes: - i - Students who demonstrate... • analytic capabilities • communication skills including reading, writing, speaking, listening, and numeracy • creative expression and educated response to the creative works of others • ethical judgment and decision-making ability • career and life planning skills • responsible citizenship • understanding of ways to participate in an interdependent world • problem solving skills • concern, understanding, and respect in social interactions • technology literacy • ability to develop and maintain wellness An environment in which people are... • physically, psychologically, and emotionally safe • treated fairly and ethically • valued for their unique backgrounds and contributions Staff members who... • are active, lifelong learners committed to continuing professional and personal development • are leaders in instructional practices • create school work which engages and challenges students • are innovative, take risks, and share what is learned from successes and failures • are concerned, caring, and compassionate • cooperate as partners with parents and the community in the education of students • use student learning data to inform instructional decisions and practices A Board of Education that... • provides high quality resources for students and staff • respects successful programs and practices • encourages continual improvement through risk-taking and innovation • cooperates and communicates as a partner with parents and the community in the education of students • celebrates student and staff success • promotes lifelong learning • involves school and community members in decision-making processes - ii - District Organization and History Township High School District 214’s creation in 1914 can, in part, be attributed to the Women’s Suffrage Movement. As the creation of the District was a hotly contested election issue, men’s ballots opposed the proposition while women’s ballots supported the proposition. With the subsequent validation of the Women’s Suffrage Act came the creation of Township High School District 214. The district was established on March 28, 1914. In 1922, the school board adopted plans for construction of nine classrooms, an auditorium, and a gymnasium. Arlington High School opened to students in 1923. Increasing enrollment necessitated that several additions were constructed. The second high school constructed was Prospect High School in Mt. Prospect in 1957. In 1962, Forest View High School in Arlington Heights was constructed due to district enrollment topping over 6,300 students. Wheeling High School was constructed in 1964, Elk Grove High School in 1966, John Hersey High School in 1968, Rolling Meadows High School in 1971, and Buffalo Grove High School in 1973. By 1973, there were 19,000 students enrolled in the district. The district’s enrollment peaked at 19,823 students during 1975-1976. Enrollment has declined since that time. Due to declining enrollment, Arlington High School closed in June 1984, and Forest View closed in June 1986.