~C EDER, CASELLA &
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EDER, CASELLA & CO. ~c A PROFESSIONAL CORPORATION CERTIFIED PUBLIC ACCOUNTANTS 5400 WEST ELM STREET, SUITE 203 McHENRY, ILLINOIS 60050 Telephone (815) 344-1300 Fax (815) 344-1320 [email protected] LAKE PARK HIGH SCHOOL DISTRICT NO. 108 DUPAGE COUNTY, ILLINOIS ANNUALRNANC~LREPORT JUNE 30,2010 LAKE PARK HIGH SCHOOL DISTRICT NO. 108 TABLE OF CONTENTS JUNE 30, 2010 PAGE INDEPENDENT AUDITORS' OPINION 1 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 3 REQUIRED SUPPLEMENTARY INFORMATION Management's Discussion and Analysis 5 BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements Statement of Net Assets 10 Statement of Activities 11 Fund Financial Statements Balance Sheet - Governmental Funds 12 Reconciliation of the Balance Sheet to the Statement of Net Assets 13 Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds 14 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities 15 Statement of Fiduciary Assets·and Liabilities 16 Notes to Financial Statements 17 REQUIRED SUPPLEMENTARY INFORMATION Statement of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual - General Fund - Educational Fund 38 Statement of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual - Special Revenue Fund - Operations and Maintenance Fund 45 Statement of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual - Special Revenue Fund - Transportation Fund 46 LAKE PARK HIGH SCHOOL DISTRICT NO.1 08 TABLE OF CONTENTS JUNE 30, 2010 PAGE REQUIRED SUPPLEMENTARY INFORMATION (Continued) Statement of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual - Special Revenue Fund - Illinois Municipal Retirement/Social Security Fund 47 Statement of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual - Special Revenue Fund - Working Cash Fund 49 Notes to Required Supplementary Information 50 SUPPLEMENTAL FINANCIAL INFORMATION Statement of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual - Debt Services Fund 51 Statement of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual - Capital Projects Fund 52 Statement of Changes in Fiduciary Assets and Liabilities - Agency Funds 53 Computation of Operating Expense Per Pupil and Per Capita Tuition Charge 58 ANNUAL FEDERAL FINANCIAL COMPLIANCE SECTION Cover Sheet 59 Report on Compliance with Requirements Applicable to Each Major Program and on Internal Control Over Compliance in Accordance with OMB Circular A-133 60 Schedule of Expenditures of Federal Awards 62 Notes to the Schedule of Expenditures of Federal Awards 65 Schedule of Findings and Questioned Costs 66 Summary Schedule of Prior Audit Findings 68 Corrective Action Plan 69 EDER, CASELLA & CO. ~c A PROFESSIONAL CORPORATION CERTIFIED PUBLIC ACCOUNTANTS 5400 WEST ELM STREET, SUITE 203 McHENRY, ILLINOIS 60050 Telephone (815) 344-1300 Fax (815) 344-1320 [email protected] INDEPENDENT AUDITORS' OPINION To the Board of Education Lake Park High School District NO.1 08 Roselle, Illinois We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Lake Park High School District NO.1 08 as of and for the year ended June 30, 2010, which collectively comprise the District's basic financial statements as listed in the table of contents. These financial statements are the responsibility of Lake Park High School District No. 108's management. 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 of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our 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 Park High School District No. 108 as of June 30, 2010, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated October 7, 2010 on our consideration of Lake Park High School District NO.1 08's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis and budgetary comparison information on pages 5 through 9 and 38 through 50 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 - 1 - 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 sufficientevidence to express an opinion or provide any assurance. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise Lake Park High School District No. 108'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 accompanying 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 of Lake Park High School District No. 108. The Schedule of Expenditures of Federal Awards is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the 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, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. As discussed in Note 20 to the financial statements, the District implemented GASB Statement No. 53, Accounting and Financial Reporting for Derivative Instruments. EDER, CASELLA & CO. Certified Public Accountants McHenry, Illinois October 7,2010 - 2 - EDER, CASELLA & CO. ¢c A PROFESSIONAL CORPORATION CERTIFIED PUBLIC ACCOUNTANTS 5400 WEST ELM STREET, SUITE 203 McHENRY, ILLINOIS 60050 Telephone (815) 344-1300 Fax (815) 344-1320 [email protected] REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAUDITING STANDARDS To the Board of Education Lake Park High School District No. 108 Roselle, Illinois We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Lake Park High School District No.1 08 as of and for the year ended June 30, 2010, which collectively comprise the District's basic financial statements, and have issued our report thereon dated October 7, 2010. We conducted our audit in accordance with auditing standards generally accepted in the United States of America