LISLE COMMUNITY UNIT SCHOOL DISTRICT NO. 202 (Lisle, Illinois)
Audited Financial Statements And Supplementary Financial loiormation
.June 30, 2012 TABLE OF CONTENTS
Independent Auditors' Report......
Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Jlased on an Audit of Financial Statements Perfomted in Accordance with Govemment Auditi11g Sta11dards ......
Management's Discussion and Analysis...... 5
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Assets- Modified Cash Basis ...... 17
Statement of Activities - Modified Cash Basis ...... 18
Fund Financial Statements:
Statement of Assets and Liabilities Arising from Cash Transactions - Govemmental Funds...... 19
Reconciliation of the Statement of Assets and Liabilities Arising fwm Cash Transactions of Governmental Funds to the Statement of Net Assets-Modified Cash Basis...... 20
Statement of Revenues Received, Expenditures Disbursed and Changes in Fund Balances - Governmental Funds ...... 21
Reconciliation of the Statement of Revenues Received, Expenditures Disbursed and Changes in Fund Balances of Governmental Funds to the Statement of Activities-Modified Cash Basis...... 22
Statement of Fiduciary Assets and Liabilities- Agency Fund...... 23
Notes to Financial Statements...... 24 TABLE OF CONTENTS
Supplementa ry Financial Information:
Combining Statements and Individual Fund Schedules:
Major Funds:
General Fund: Combining Statement of Assets and Liabilities Arising from Cash Transactions by Account...... 45 Combining Statement of Revenues Received, Expenditures Disbursed and Changes in Fund Balances by Account...... 46 Educational Account: Schedule of Revenues Received, Expenditures Disbursed and Changes in Fund Balance • Budget and Actual...... 47 Operations and Maintenance Account: Schedule of Revenues Received, Expenditures Disbursed and Changes in Fund Balance· Budget and Actual...... 57 Working Cash Account: Schedule of Revenues Received, Expenditures Disbursed and Changes in Fund Balance· Budget and Actual ...... 59 Tort Immunity Account: Schedule of Revenues Received, Expenditures Disbursed and Changes in Fund Balance· Budget and Actual...... 60
Non-Major Funds:
Combining Statement of Assets and Liabilities Arising from Cash Transactions by Account · Nomnajor Govermnental Funds...... 61
Combining Statement of Revenues Received, Expenditures Disbursed and Changes in Fund Balances by Account · Nonmajor Governmental Funds...... 62
Schedules of Revenues Received and Expenditures Disbursed · Nomnajor Governmental Funds:
Transportation Fund: Schedule of Revenues Received, Expenditures Disbursed and Changes in Fund Balance· Budget and Actual...... 63 Municipal Retirement/Social Security Fund: Schedule of Revenues Received, Expenditures Disbursed and Changes in Fund Balance · Budget and Actual...... 64 TA BLE OF CONTENTS
Debt Service Fund: Schedule of Revenues Received, Expenditures Disbursed and Changes in Fund Balance- Budget and Actual ...... 65
Fiduciary Funds - Agency Funds: Activity Funds- Schedule of Changes in Cash Balances ...... 66
Other Financial Infonnation:
Schedule of Assessed Valuations, Tax Extensions and Collections...... 67
Schedule of Bonded Debt Maturities and Interest...... 68
Schedule of Per Capita Tuition Charge and Average Daily Attendance ...... 69
Schedule of Funding Progress...... 70 MATHIESON ______M OYSKI· CELER ______(630) 653-1616 & Co., LLP Fax(630)653-1735
Ccrllfied Public Accounllln1S 211 South Wheaton Avenue, Suite 300 Wheaton, IL 60187
Independent Auditors' Report
Board of Education Lisle Community Unit School District No. 202 Lisle, Illinois
We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund info rmation of Lisle Community Unit School District No. 202 (the District), as of and for the year ended June 30, 2012, which collectively comprise the District's basic financial statements as li sted in the table of contents. These financial statements are the responsibility of the District's management. Our responsibility is to express opinions on these financiul s tatemenl~ based on our audit. The prior year partial comparative information has been derived fi·om the District's 2011 financial statements and, in our report dated October 1.3, 2011 , we expressed unqualified opinions on the respective modified cash basis financial statements of the governmental activities, each major fund, and the aggregate remaining fund info rmation.
We conducted our audit in accordance with auditing standards genera.lly accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standardr, issued by the Comptroller General of the United States. Those standards require that we plan and perfonn 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 fmancial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluati ng the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions.
As discussed in Note I, the District prepares its financial statements on the modified cash basis of accounting, wl1ich is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position-modified cash basis of the governmental activities, each major fund, and the aggregate remaining fund information of the District, as of June 30, 2012, and the respective changes in financial position-modified cash basis, thereof for the year then ended in conformity with the basis of accounting described in Note I.
MEMBERS AMERICAN INSTITU'rE OF CERTIFIEO PUBLIC ACCOUI'ITANTS ILLINOIS CPA SOCIETY Board of Education Page2
In accordance with Government Auditing Standards, we have also issued our report dated October 8, 2012, on our c-onsideration of the District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing and not to provide an opinion on 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 considered in conjunction with this report in considering the results ofour audit.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the District's financial statements as a whole. The combining and individual fund financial statements, management's discussion and analysis, schedules of funding progress relative to the Illinois Municipal Retirement Fund and the District's other post-employment benefits and other fmancial information are presented for purposes of additional analysis and are not a required part of the financial statements. The combining and individual fund fmancial statements are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. The management's discussion and analysis, schedules of funding progress relative to the Ulinois Municipal Retirement Fund and the District's other post-employment benefits and other financial information has not been subjected to the auditing procedures applied in the audit of the basic fmancial statements and, accordingly, we do not express an opinion or provide any assurance on it.
October 8, 2012 MATHIESON ______MOYSKI·CELER ______(630) 653-1616 & Co., LLP Fax (630) 653-1735
Cer October 8, 2012 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 Board of Education L isle Community Unit School District No. 202 L-isle, Illinois We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fu nd information of Lisle Community Unit School District No . 202 (the District) as of and for the year ended June 30,2012, which collectively comprise the District's basic financial statements and have issued our report thereon dated October 8, 2012. The report on the basic financial statements was quali ried because the District prepares its financial statements on the modified cash basis of accow1ting, which is a comprehensive basis of accounting other than accounting principles generally accepted in tbe United States of America. 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. Internal Control Over financial Reporting Management of the District is responsible for establishing and maintaining effective intemal control over t1nancial planning. In planning and performing our audit, we considered the District's intemal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the District's internal control over financial reporting. 1\ deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the norrnnl course ofperforming d1eir 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 c.orrected on a timely basis. MEMBERS AMERICAN INSTITUTE OF CERTIFIED PUBliC ACCOUNTANTS ILUNOIS CPA SOCIETY Board of Education October 8, 20 12 Ou.r consideration of internal control over financial reporting 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 deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. Compliance and Other Matters As part of obtaining reasonable assmance about whether the District's fi nancial statements are free of 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. We noted certain matters that we reported to those charged with governance of the District in a separate letter dated October 8, 20 12. This report is intended for the information and use of management, the local Board of Education and lederal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. Lisle Community Unit School District No. 202 Management's Discussion and Analysis For the Year Ended June 30,2012 This discussion and analysis is intended to be an easily readable overview of Lisle Community Unit School District's financial activities for the year ended June 30, 20 12, based on currently known tacts, decisions and conditions. The District's financial statements are being reported in compliance with provisions of the Governmental Accounting Standards Board. Management's Discussion and Analysis (MD&A) provides an overview of the District's financial activities for the fiscal year ended June 30, 2012 with comparative data to the fiscal year ended June 30, 20 II. This report should be read in combination with the basic fioaocia.l statements that follow. The District continues to report its financial statements on a modified cash basis. Modified cash basis financial statements omit recognition of receivables and payables and other accrued and deferred items that do not arise from previous cash transactions. Financial Highlights o 'f'he assets of Lisle Community Unit School District exceeded its liabi lities at the close of the fiscal year by $59.1 million (net assets). Unrestricted net assets were $39 m.illion as of'June 30, 20 12. o The District's financial condition continues to improve as total net assets increased by $3.8 million during fiscal year 2012 as reported in the statement of activities. o The School District had $30.1 million of expenses related to governmental activities; $6.6 million of these expenses were offset by program specific charges for services, grants or contributions. General revenues (primarily property taxes) of S27.3 million were adequate to provide for these programs. o As of the close of fiscal year 2012, the District's governmental funds reported combined ending fund balances of $43 million, an increase of $2.6 million in comparison to the prior year. o At the end of fiscal year 2012, the District's governmental funds combined unassigned fund balance was $38.7 million, which is 123% of the total governmental funds expenditures. 5 Lisle Community Unit School District No. 202 Management's Discussion and Analysis For the Year Ended June 30,2012 Usi ng the Report I Report Layout This Report consists of govermnent-wide statements, fund financial statements, notes to these statements and other supplementary financial statements and schedules. The statements are organized so the reader can understand the District finances as a whole, and then proceed to provide an increasingly detailed look at specific financial activities. The govermnent-wide statements are highly condensed and present information about the District's finances and operations as a whole, with a longer-term view. Within this view, all District operations are categorized and reported as governmental activities. The fund financial statements tell how the District financed its governmental activities in the sho.rt-term, as well as identifying what remains for future spending. The fwtd financial statements also report the District's operations in more detail than the government-wide financial statements by providing information about the District's significant funds. Reporting the District as a Whole An important question asked about the District's finances at the conclusion of each fiscal year is, "Is the District better off or worse off as a result of the year's activities?" The Statement of Net Assets and the Statement of Activities report information about the District as a whole and about its activities in a manner that helps to answer this question. These two statements report the District's net assets and changes in them. The change in net assets provides the reader with a tool to assist in determining whether the District's financial health is improving or deteriorating. However, it is important to consider other non-financial factors such as changes in the District's property tax base or the condition of the District's buildings to accurately assess the overall health of the District. The Statement of Net Assets presents the assets, liabilities and resulting net assets of the District's govemmental activities. Governmental. activities reflect capital assets and long-term liabilities. The Statement of Activities presents expenses of major programs (functions) and matches direct program revenues with eacll. To the extent that direct charges and grants do not recover a program's cost, it is paid from general taxes and other resources. The statement simplifies the user's analysis to determine the extent to which programs are self- supporting and/or subsidized by general revenues. 6 Lisle Community Unit School District No. 202 Management's Discussion aod Analysis For the Year Ended June 30,2012 Reporting the District's Most Significant Funds The analysis of the District's major funds begins on page 19. These statements reinforce information in the government-wide financial statements or in provided additiomsl intormation. Each of the District's major funds is presented in a separate column in the fund Llnancial statements and the remaining fnnds (considered nonmajor funds) are combined into " column titled "Other Govemmental Funds." The District's major Governmental Funds include the General Fund (Educational Account, Operations and Maintenance Account, Working Cash Account, and the Tort Immunity Account). The District's non-major (Other) Governmental Funds consist of the Transportation, Municipal Retixcment/Social Security, and the Debt Service Funds. The "Combining Statements and Individual Fund Schedules" section of the Report includes Jinancial information for both m(\jor and non-major funds. The District's individual funds arc established based upon legal requirements and the Illinois Program Accounting Manual. Substantially all of the District's activities are reported in gover!1D1ental funds, which focus on how money llows into and out of those funds and the balances remaining at year-end available for spending in future periods. The governmental fund statements provide a detailed short-term view of the District's general government operations and the basic services it provides. Governmental fund information helps one determine whether there are more or less financial resources available to spend in the near future to finance the District's programs. The relationship (or differences) between governmental activities (reported in the Statement of Net Assets and the Statement of Activities) and governmental funds is reconciled in the basic financial statements. The District uses an agency fund to account for resources held for student activities and groups. This Fiduciary Fund is not reflected in the government-wide financial statements because the resources of this fund are not available t.o support the District's own programs. The basic fiduciary fund financial statement can be found on page 23 of this report. 7 Lisle Community Unit School District No. 202 Management's Discussion and Analysis For the Year Ended June 30,2012 District-Wide Financial Analysis The following is a comprehensive analysis of the various condensed statements tor the current and pdor-year data. Statement of Net Assets: The following table reflects the condensed statement of net assets. CONDENSED STATEMENT OF NET ASSETS GOVERNMENTAL ACTIVITIES As of June 30 Amouu(t i11 MiUions 2012 2011 Assets: Cash and investments $43.0 $40.5 Bond issuance costs, net $0.1 $0.1 Capital assets 26.3 26.1 Total assets $69.4 $66.7 Liabilities: Long-term liabilities, due within one year 1.2 1.2 Long-term liabilities, due in more than one year 9.1 10.2 Total liabilities 10.3 11.4 Net assets: Invested in capital assets, net of related debt 16.1 14.9 Restricted 4.0 3.7 Unrestricted 39.0 36.7 Total net assets 59. 1 55.3 Total liabilities and net assets $69.4 $66.7 The $2.5 million increase in cash and investments accounts tor the majority of the increase in assets from the prior year. The reduction in long-term liabilities reflects the scheduled principal payments for bonds payable and capital leases. 8 Lisle Community Unit School District No. 202 Management's Discussion and Analysis For the Year Ended June 30, 201 2 Statement of Activieies: The following table reflects the condensed statement of activities. CONDENSED STATEMENT OF ACTIVITIES GOVERNMENTAL ACITVITIES For the fiscal year ended June 30 Amounlt: In Tbou:sands 2012 2011 Revenues: Program Revenues: Charges for services $677 $679 Operating grants and contributions 5,883 5,823 General revenues: Property taxes 25,975 25,774 Unrestricted state and federal aid 614 514 Investment earnings 158 284 Miscellaneous 579 545 Total revenues 33,886 33,619 Expenses: Instruction 19,205 18,338 Support Services 10,404 10,703 Community Services 100 106 Interest on long-term debt 405 517 Total expenses 30,114 29,664 I nCI'ease in net assets 3,772 3,955 Net assets beginning ofyear 55,349 51,394 Net assets end of year $59,121 S55,349 Total revenues increased by approximately $267,000 from the prior year. The majority of the increase pertains to the receipt of additional property taxes along with state and federal aid. These increases were offset by a reduction in itwestment earnings from lower interest rates earned on the District's investments due to the poor firlancial economy. Total expenses for Governroemal Activities increased by approximately $450,000, or 1.5%, when compared to the prior year. The increase in instruction related expenses was partially offset by a decrease in support services costs and interest on long-term debt. 9 Lisle Community Unit School District No. 202 Management's Discussion and Analysis For the Year Ended June 30,2012 GOVERNMENT A.L FUNDS FINANCIAL STATEMENTS As noted earlier, Lisle Community Unit School District 202 uses fund accounting to comply with finance-related legal requirements. The focus of the District's govemmental funds is to provide information on near-term inflows, outJlows, and balances of spendable resources. Such information is useful in assessing the District's financing requirements. Tn particular, unassigned fund balance may serve as a useful measure of a District's net resources available for spending at the end of tbe fiscal year. Governmental Funds Financial Analysis Fund Balances: As of the end of the current fiscal year, the District's governmental funds reported combined ending fimd balances of $43 million, an increase of $2.6 million in comparison witb tbe previous fiscal year. The General Fund is the primary operating fund of the District. At the end of the cun·ent fiscal year, the unassigned fund balance of !be General Fund was $38.7 mi.llion. As a measure of !be General Fund's liquidity, it is useful to compare unassigned fund balance to total fund expenditures. Unassigned fund balance represents approximately 137% of total general fund expenditures excluding $3.1 million of on-behalf payments made by the State of Illinois to TRS directly. The General Fund Combining Statement of Assets and Liabilities Arising from Cash Transactions by Account can be found on page 45 of this report. 10 Lisle Community Unit School District No. 202 Management's Discussion and Analysis For tbe Year Ended June 30, 2012 Statement or Revenues: The following is the analysis ofrevenues for the past two years for the governmental activities of the District. COJ'vlPARATIVE SUMMARY OF REVENUES GOVERNMENTAL FUNDS For the Fiscal Years ending June 30 A.mounfJ in ThoUl'lnd:s Increase % 2012 2011 ~Decrease) Change Property Taxes $ 25,975 $ 25,775 $ 200 1% Payments in Lieu ofTaxes 320 362 (42) - 13% Earnings on InvestmentS 158 284 (126) -80% Other Local Revenue 956 861 95 10% General State Aid 463 444 19 4% Rest1·icted Slate Grants 1,645 1,926 (281) -17% Restricted Federal Grants 1,261 1,181 80 6% On-behalfTRS payments 3, 129 2,786 343 I I% Total $ 33,907 $ 33,619 $ 288 2% The most significant revenue source for all the governmental funds during fiscal year 20 12 continues to be property taxes. Property tax collections for the current year were consistent with fiscal year 20 I l . Payments in lieu of taxes primarily come from Corporate Personal Property Replacement Taxes. This revenue source will vary from year to year because it is based on a percentage of corporate profits within the state of Illinois. Investment earnings decreased significantly from the prior year due to the average investment rates being much lower in the current year due to the poor financial economy. The majority of tbe increase in other local revenue was due to the receipt of approximately $47,000 in impact fees from the Vi!Jage of Lisle during the current fiscal year. Unrestricted General State Aid is distributed to school districts in Illinois on the basis of the District's weighted average daily attendance of students and the amount of the local District's equalized assessed valuation for the previous year. General State Aid receipts increased slightly from the prior fiscal year. The restricted State and Federal grants fluctuate year to year based on the timing of tbe collection of the quarterly payments between fiscal years. II Lisle Community Unit School District No. 202 Management's Discussion and Analysis For the Year Ended June 30,2012 The on-behalf TRS payments reflect the State's contribution to the Teachers' Retirement System. The funding will vary from year-to-year based on the State's contribution. Statement of Expenditures: The l~> ll owi11g is the analysis of expenditures for the past two years for the govemmental activities of the District. COMPARATIVE SUMMARY OF EXPENDITURES GOVERNMENTAL FUJ\'DS For the Fiscal Years coding J une 30 Amoullf.J in nou:saads Increase % 2012 2011 (Decrease) Change Instruction s 14,1 81 s 13,569 s 612 4% Support Services 11,258 10,767 491 4% Community Services 100 105 (5) -5% Non-programmed Charges 1,186 1,258 (72) -6% On-behalf Payments made by State to TRS 3,129 2,786 343 I I% Debt Service- Principal & Interest 1,618 1,71 I (93) -6% Total $ 31,472 $ 30,196 $ 1,276 4% The rise in instruction related expenditures is consistent with the salary increases in the collective bargaining agreements and the rising costs of health care. Suppon services increased as a result of capital expenditures to constmct new parking lots at the junior high and high schooL The decrease in non-programmed charges is consistent with the reduction in the number of students requiring private placements in programs outside of the school district. The on-behalf TRS payments reflect the State's contribution to the Teachers' Retirement System. The funding will vary from year-to-year based on the State's contribution. The decrease in the debt service is consistent with the outstanding bond I debt repayment schedules. 12 Lisle Community Unit School District No. 202 Management's Discussion and Analysis For the Year Ended June 30,2012 General Fund Budget Information The District Budget is prepared in accordance with Illinois law and is based on the modified cash basis of accounting, utilizing cash receipts, disbursements and encumbrances. The General Fund represents the largest of all budgeted funds for the District. Significant actual differences compared to the final budget are discussed below: Actual Budget Results Reason for Difference Revenue: Educational Account - State $2,850,000 $3,128,529 The on-behalf payments reflea Sources- On-behalf payments the State's contribution to the - State of Illinois Teachers' Retirement System. The funding will vary from year to-year based on the State's contribution rate as a percentage of creditable earnings. Educational Account- Federal $30,000 $ 174,879 The funding for ARRA was Sources- ARRA - IDEA - Pa1t extended and the District received B- flow-througb additional grant dollars that were not expected. Expenditures: Educational Account- $2,850,000 $3,128,529 The on-behalf payments reflect Instruction- Regular Programs the State's contribution to the - On-behalf payments - State of Teachers' Retirement System. Illinois The funding wil l vary from year to-year based on the State's contribution rate as a percentage of cl'editable earnings. Educational Account- $147,824 $261,703 The $166,000 value of equipment Instruction - Regu lar Programs purchased as part of a capital - Non·capitalized Equipment lease was not included in the budget fol' the year. Educational Account - $1,206,500 $1,078,875 Actual tuition payments were Payments to Other Districts and significantly less that the budget Governmental Units - Special for the year due to serving fewer Education -Tuition students with special needs than initially projected. 13 Lisle Community Unit School District No. 202 Management's Discussion and Analysis For the Year Ended June 30, 2012 Actual lludgct Results Reason for· Difference Expenditures (continued): Operations and Maintenance $1 ,250,000 $858,167 Actual costs to construct new Account - Support Services parking lots at the j unior high and Business- Facilities high school were less than Acqui sition and Construction anticipated. Capital Outlay Operations and Maintenance $929,652 $800,588 The budget included the cost of Account- Support Services an additional maintenance staff Business - Operation and position that did notr!"aterialize. Maintenance of Plant Services Salaries Operations and Maintenance $698,000 $520,964 The cost of uti Iit ies such as gas Account - Support Services and electricity were significantly Business - Operation and less than budgeted for the year. Mnintenance of Plant Services Supplies and Materials T r·ansfcrs/Other: Educational Account- Capital so $182,420 Capital lease proceeds were not Lease Proceeds included in the budget. Capital Asset and Long-term Debt Activity Capit:1l Assets: The capital assets of the District are those used in the pe rformance of general governmental functions. They are recorded at original cost, which is cons iderably less than their present replacement value. Capital assets include land, buildings and improvements, and equipment. Lisle Community Unit School District's investment in capital assets for its governmental activities at year end totaled $26,28 1,765 (net of accumulated depreciation). Net additi.ons to capital assets were $923,812 during the year. Depreciation charges of $798,309 were expensed on the total capital assets during fiscal year 2012. 'The District purchases outside third party speci fie and aggregate insurance coverage to protect itself from severe losses. Additional information on the District's capital assets can be found in Note 3 on pages 31 and 32 of this report. 14 Lisle Community Unit School District No. 202 Management's Discussion and Analysis for the Year Ended June 30,2012 Debt Administration: Total District long-term debt net of deferred amounts, at year end was $10,30 I ,829, including bonds payable and capital leases. Additions to debt included $182,420 of new capital leases. Reductions in long-term debt, including payment of principal through debt service propeny taxes and amortization of deferred amounts totaled $1,226,908. The District has "Series 2005" and "Series 20 I 0" general obligation bond issues with $5,985,000 and $4,360,000 outstanding, respectively. The entire amount of the general obligation issues are backed by the full faith and credit of the District through property taxes. The principal on the District's bonds is schcdu.led to be fully retired in fiscal year 2020. The State statutes limit tbe amount of outstanding debt to 13.8% of assessed valuation. That would make the current debt limitation S82 million, which is significantly in excess of the District's general obligation debt. Additional information on the District's long-term debt can be found in Note 4 on pages 32 and 33 of this report. Factors Bearing on the District's Future At the time these financial statements were prepared and audited, the District was aware of the following circumstances that will affect financial operations in the future: Weak Economy: Although revenue from propcny taxes continues to increase despite the overall decrease in property values, many areas of the District's finances are affected by the current weak economy. The District's portion of state-based revenue continues to be affected by these economic conditions as many state reimbursements and programs have been reduced or eliminated entirely. ln addition, the State of Illinois has become delinquent in paying their obligations to the District. Inter est Rates: lnterest earnings have been historically low over the past few years. The change in interest rates has had a significant impact on the District's investment earnings. Proper ty Tax Caps: The Illinois General Assembly has previously passed the Property Tax Extension Limitation Law, also known as Tax Caps, which limits the levy increase to the lesser of the consumer price index (CPI) or 5 percent. This legislation for taxing districts has limited the growth in the extended tax levy. The tax caps will continue to affect the District's future levies for all non-debt related purposes. 15 Lisle Community Unit School District No. 202 Management's Discussion and Analysis For the Year Ended June 30,2012 Grant Funding Levels: The District has benefited greatly over the past several years as a result of grant revenues. These grants are the primary reason the District has been able to fund its technology, safety, and staff developmem programs without relying on local revenue. If these trends continue, and these grants are not replaced by other grants, this could result in a significant strain on the District's fmancial position. Contract Negotiations: The Board of Education has collective bargaining agreements with the Lisle Education Association and the Classili.ed Employees Association of Lisle through the 2012-2013 school year. Negotiations for a new agreement will occur during the 2013 fiscal year. Aging School Buildings: Building improvements will continue to be addressed during the next five years. Significant costs related to replacement of roofs, parking lots, HVAC units, and other life safety projects may cause the Board of Education to seek out additional financing sources for the work. Long-term Financi~l Planning: The District annually updates its 5-year needs assessments in all areas of its operations to enable the development of a multi-year budget projection. With careful planning and monitoring of our finances, Lisle Community Unit School District No. 202 is confident that it can continue to provide a quality education for its students and a secure fmancial future for the school district Requests for Information This financial report is designed to provide a general overview of Lisle Community Unit School District No. 202's finances for all those with ar1 interest in the District's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to: David Wi lkinson, Director of Finance, Lisle Community Unit School District No. 202, 5211 Center Avenue, Lisle, IL 60532. 16 L-ISLE COMMUNITY UNIT SCHOOL DISTRICf NO. 202 ST ATEMENT OF NET ASSETS· MODIFIED CASH BA IS JUNEJO, 2012 WITH COMPARATIVE TOTALS FOR 2011 Covernmcntnl Activities 2012 20 11 Assets: Cosh and investments $ 43 ,035,899 $ 40,419,2 10 Bond issuance costs, net 11 5,227 130,308 Capital assets: Land and construction in progress 975,320 1,013,552 Other capital assets, net of depreciation Z5,306,445 25, 142,71 0 Total assets 69,432,891 66,705,780 Llnbilities: Other current liabilities I 0,000 I 0,000 Long-tetm liabilities: Du<> within one year 1,242,022 1,187,848 Due in more than one year 9,059,807 10, 158.469 Total liabilities 10,311.829 11,356,3 17 Net Asstts: Invested in capital assets, net ofrclnted dcbl 16,127,750 14,910,654 Restricted fo•·: Debt service 1,860,463 1,825,262 Transportation 1,373, 143 1, 149,254 Retirement 786,561 802,786 Unt'CStrictcd 38,973, 145 36,661,507 Total net assets s 59,121 ,062 $ 55,349,463 The notes to the financial statements are an integral part of th is smtement. 17 LISLE COMMUNITY UN IT SCHOO L DISTRICT NO. 202 STAT EMENT OF' ACTIVITIES· MODifiED CASH OASIS YEAR ENDED J UN E 30,2012 WITH COMPARATIVE T OTALS FOR 2011 Net (Expense) Revenue and Changes in Progpm Revenues Net Assets Operating Total Governmental Chm·ges for Grants and Activities Functions Expenses Seo·vices Contributions 2012 2011 Governmental activities: lnstl'uctional services: Regular programs s 13,443,434 s 391,069 $ 3,196,227 s (9,856, 138) s (9,099,408) Special programs 4,993,827 1,937,225 (3,056,602) (3,260,842) Other programs 767,766 (767,766) (n3,228) Supporting services: Students 1,490,851 ( 1,490,85 I) ( 1,395,584) Instructional staff 1,267,954 (1,267,954) (1,372,934) District administration 1,268,836 ( 1.268,836) (1,439,358) School administration 1,540,039 ( 1,540,039) (1,514,797) Business 471,328 (47 1,328) (497,992) Operation and maintenance oftitcili ties 2, 167,335 5,12 1 (2,162,214) (2, 147,545) Transportation 1,4 16,110 23,789 575,444 (816,&77) (744,990) l'ood service 409,785 262,003 168,977 2 1,195 21,484 Staff 372,177 (372,177) (363, I 82) Community services 100,171 (100,171) (105,586) Interest on long-tenn liabilities 405,126 (405,126) (517,481) Total school district $30, 114,739 s 676,861 s 5,882,994 s (23,554.884) S (23, 16 I ,443) Cenernl revenu es: Property rnxes levied for: General purposes 22,840,760 22,588,968 Tnmsportation 1,011 ,927 984,009 Rctitement 601,402 651,615 Debt service I ,520,821 1,543,?66 Fcdcrnl and stntc aid not rcstticted to specific puo·poses 614,48& 5 13,610 Eamings on investments 158,445 284,21 7 Miscellaneous 578 640 544.551 Total general revenues 27,326,483 27,116,796 Change in net assets 3,771.599 3,955,353 Net nssets - beginning 55.349,463 51,394,110 Net assets- ending s 59,121.Q62 s 55,349,463 The notes to the tlnancial statements are an integral part of this stntement 18 LISLE COMM UNITY UNIT SCHOOL DISTRICT NO. 202 STAT EMENT OF ASSETS AND LIABILITIES ARISING FROM CASH T RANSACTIONS GOVERNM ENTAL FUN DS J UNE 30, 2012 Other Total Governmental Governments I General Pu11ds funds ASSETS Cash and investments $ 39,130,959 s 3,904,940 $ 43,035,&99 TOTAl. . ASSETS $ 39,130,959 $ 3,904,940 $ 43,035,899 LIABILIT IF.S AND FUND BALANCE Liabilities: Other current llnbilities $ 10,000 $ s 10,000 Total Liabilities 10,000 10,000 Fund Balance: Restricted 3,904,940 3,904,940 Assigned 425,054 425,054 Unassigned 38,695,905 38,695,905 Total Fund Balance 39,120,959 3,904,940 43,025,899 TOTAL LIABILITI ES AND FUND BALANCE $ 39,130,959 s 3.904.940 s 43,035,899 The notes to the financia l statements are an integra l part of this statement. 19 LISLE COMMUNITY UNIT SCHOOL DISTRICT NO. 202 I~ ECONC I LIATION OF THE STA TEM 8NT OF ASSETS AND LIABILITIES ARISING FROM CASH TRANSACfiON OF GOVERNMJ>NTAL FUN OS TO Til£ STATEMENT Ofl NET ASSETS- MODIFIED CASH BASIS J UNE 30,2012 Amounts 1-eported for governmental activities in the statement ofnet assets are different because: Total fund bl\11\nce - governmenhll fu nds $ 43,025,899 Capitnl assets used in governmental activities a1·e not financial resources and, therefore. are no1 reported in the funds. The cost of the assets is $42,805,42 1 and the accumulated depreciation is $ 16,523,656. 26,28 1,765 Bond issuance costs are reported as expenditures in the governmental fun ds. Tile cost is 115,227 $163,701 and accumulated amortization is $48,474. Long-tcml liabilities, including bonds paynble and capital leases, are not due and payable in the current period and therefore are not reported in the funds. Bonds payable and deferred issuiUlce premium (I 0,30 I ,829) Totnl uet nsscts - governmental activities $ 59, 121,062 The notes to the financial shlte mems are an integral part of this statement. 20 LISLE COM MUN ITY UNIT SCHOOL DISTRICT NO. 202 STAT EMENT OF REVENUES RECEIVED, EXPENDITURES OIS!lUilSEO AN D CHANCES IN FUND BALANCES GOVERNMENTAL FUNDS YEAR EN OEO J UNE 30, 201 2 Other Total Governmental Govcnuncntal Geneml Funds Funds UEVENUES RECEIVEO: Propeny mxes $ 22,840,760 $ 3, 134,150 $ 25,974,910 Otlter loca l so~rces 1,354,661 79,630 1,434,291 State sources 4,661,091 575,444 5,236,535 Federal sources 1,260,947 1,260.947 Total Revenues Received 30 117,459 3,789,224 33.900,683 EXPENDITURES DISBURSE D: Instruction 17,057,781 252,402 17,3 10, 183 Supporting services 9,433,914 1,824,074 11,257,988 Community services 99,730 44 1 100,171 Payments to other districts and governmental units 1,186,137 1, 186,137 Debt service: Payment of principal on long-term debt 1,250,3 15 1,250,3 15 Interest on long-term debt 366,638 366,638 Service charges 982 982 Total Expenditures Disbursed 27,777,562 3,694,852 31,472,4 14 Excess ofrevenues received over expendhures disbursed 2.339,897 94,372 2,434.269 OTHER FINANCING SOURCES (USES): Transfers in 163,574 163,57•1 Capital lease proceeds 182,420 182,420 Transfers out (163,574) ( 163,57<1) Tolal other fi nancing sources (uses) {8,846 163,574 182 420 Ncl change in fund balances 2,358,743 257,946 2,6 16,689 Fund balance at beginning ofyear 36,762,216 3,646,994 40,409,210 FUND BALANCE AT END OF YEAR $ 39,120,959 s 3,904,940 $ 43,025,899 The notes to the fi nancial statements are an integral patt of this statement. 2 1 LISLE COMMUNITY UNIT SCHOOL DISTRICT NO. 202 R ECONCILIATION OF THE STATEMENT Of' REVENUES RECEIVED, EXPEN DITURES DISBURSED AN D CHANGES IN FUND BALA CES OF GOVERNMENTAL FUNDS TO THE STAT EM ENT OF ACfiVITIES- MODIFIED CASH BASIS YEA R ENDED J UNE 30, 2012 Amounts ··eported for governmental activities in the statement of activities are differe nt because: Net ch:111ge in fund balances-total govern men till funds $ 2,616,689 Oovommemal funds report capital outlays as expenditures. However, in the statement of activities, assets with an initial, individual cost of more than $5,000 are capitalized and the cost is allocated over their estimated useful lives and •·cported as dep1-eciation expense. Th is is the amount by which depreciation exceeded capital outlays in the currem period. Capital oullays 923,812 Depreciation expense (798.309) 125,503 Other financing SO\Irce - capital lease ( 182,420) 11le governmental fu nds report bond nnd other debt issuance proceeds as an other financing sou•·cc, while repayment of principal is •·epo11cd ns an expenditure. Also, governmental fu nds rcpo•·t the effect ofissuane costs and premiums when debt is first issued, whereas these amounts are deferred and amortized in the statomcnl of activities. The net effect of these diffc•-enccs in the treatment of general obligmion bonds, other debt and related items is as fo llows: Am011 ization of b011d issuance costs (15,081) Amo1Tir.a1ion of bond discount 6,898 Amortization ofdefeasance asset (30,305) Repayment of principal on long-term debt 1.250,315 1.211,827 ChAnge in net nssets of governmental :Jctivitics $ 3,771,599 The notes to the financial stalements are an integral part of this stalement. 22 LISLE COMMUNITY UNIT SCHOOL l>ISTRICf NO. 202 STATEMENT Of I'IDUCIARY ASSF:fS AND LIABIIATIES AGENCY FUND J UNE 30, 2012 Student Activity Funds Assets: Cash and investments 119,277 Li•bilities: Due to student organ iz.ations s 119,277 The notes to the fi nancial statements are an integral part of this statement. 23 LISLE COMMUNITY UNIT SCHOOL DISTRICT NO. 202 Notes to Financial Statements June 30, 2012 NOTE l . SUMMARY Ol<' SIGNIFICANT ACCOUNTING POLICIES: Lisle Community Unit School District No. 202 (the District) is governed by an elected Board of Education. The accounting policies of the District conform to the modified cash basis of · accounting, which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America (GAAP) as applicable to govenunental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. A summary of the significant accounting policies, consistently applied in the preparation of the accompanying financial statements is described below. a. The Reporting Entity The District includes all funds of its governmental operations that are controlled by or dependent upon the District as determined on a basis of financial accountability. Financial accountabi lity includes appointment of the organization's governing body, imposition of will, and fiscal dependency. The accompanying financial statements include only those funds of the District as there are no other organi7..ations for which it has financial accountability. Joint Venture -The District is also a member of the following organizations: - School Association for Special Education in DuPage County (SASED) (See Note 15) - OuPage Area Occupational Education System (DAOES) (Sec Note 16) b. Basis of Presentation The District's basic financial statements consist of government-wide statements, including a statement of net assets and a statement of activities, and fund fmancial statements which provide a more detailed l.evel of financial information. 1. Governmenl:-wide Financial Statements (GWFS): The statement of net assets and the statement of activities display information about the District as a whole. These statements include the financial activities of the District, except for (icluciary funds. The effects of interfund activity have been eliminated. The statement of net assets presents the fmancial condition of the governmental activi.ties of the District at year-end. The statement of acti vities presents a cotnparison be tween direct expenses and program revenues for each program or function of the District's governmental activities. Direct expenses are those that are specifically associated with a service, program or department and therefore clearly identifiable to a particular function. Program revenues include charges paid by the recipient of the goods or services offered by the program, and grants and contributions that are restricted to meeting the operational or 24 LISLE COMMUNITY UN IT SCHOOL DISTRICT NO. 202 Notes to Financial Statements (Cont'd) June 30, 2012 capital requirements of a particular program. Property taxes and other revenues which are not classified as program revenues are presented as general revenues of the District. The comparison of direct expenses with program revenues identifies the extent to which each governmental function is self-financing or draws from the general revenues of the District. 2. Fund Financial Statements (I The accounts of the District arc organized and operated on the basis of funds. A fund is an independent fiscal and accounting entity with a self-balancing set of accounts. Fund accowtting segregates funds according to their intended purpose and is used to aid manage ment in demonstrating compliance with finance-related legal and contractual provisions. The minimum number of funds maintained is consistent with legal and managerial requirements. Separate fmancial statements are provided for governmental funds and fid uciary funds, even though the latter are excluded from the GWFS. Major individual governmental fi.mds are reported as separate columns in the FFS. The District reports the following major governmental funds: The General Fund is the District's primary operating fund . It accounts for all financial resources of the District, except those required to be accounted for in another fund. The General Fund consists of the Educational Account, Operations and Maintenance Account, Working Cash Account, nod the Tort Immw1ity Account that are legally mandated by the State ofiUinois. Additionally, the District reports the following fund types (not included in the G\VFS): The Student Activities Agency Fund (a fiduciary fund) accounts for assets held on behalf of student groups. c. Measurement Focus, Basis of Acco unting and Financial Statement Presentation Government-wide financial statements The government-wide financi al statements are reported using the economic resources measurement focus, within the limitations of the modified cash basis of accounting. 25 LISLE COMMUNITY UNIT SCHOOL DISTRICT NO. 202 Notes to Financial Statements (Cont'd) June 30,2012 Fund financial statemenrs Governmental fund financial statements are reported using the current financial resources measurement focus, within the limitations of the modified cash basis of accounting as described below. Fiduciary financial statements Fiduciary fund reporting focuses on net assets and changes in net assets. The agency fund is custodial in nature (assets equal liabilities) and does not involve measurement of results of operations. Basis ofaccounting The financial statements are presented using the modified cash basis of accounting. TI1is basis recognizes assets, liabilities, net assets, receipts and disbursements when they result from cash transactions. The basis is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America. As a result of the use of this basis of accounting, certain assets (such as accounts receivable) and t.heiJ related receipts and certain liabilities (such as accounts payable) and their related disbursements are not recorded in these financial statements. d. Budgets and Budgetary Accounling Annual budgets for all Governmental Funds are adopted on the modified cash basis of accounting, which is the same basis that is used in financial reporting. This allows for comparability between budget and actual amounts. This is an acceptable method in accordance with Chapter 105, Section 5/!7.1 of the Tllinojs Compiled Statutes. The Board of Education follows these procedu(es in establishing the budgetary data reflected in the Jinancial statements: 1. Tbe Administration submits to the Board of Education a proposed operating budget for the fiscal year commencing July ! . The operating budget includes proposed expenditures and the means of fmanciug them. 2. Public hearings are conducted and the proposed budget is available for inspection to obtain taxpayer comments. 3. Prior to September 30 the budget is legally adopted through passage of a resolution. On or before the last Tuesday in December, a tax levy ordinance is filed with the County Clerk to obtain tax revenues. The budget, which was not amended, was adopted on September 19, 20 II. 26 LISLE COMMUNITY UNIT SCHOOL DISTRICT NO. 202 Notes to Financial Statements (Cont'd) June 30,2012 4. Management is authorized to transfer budget amounts, provided funds are transferred between the same function and object codes. The Board of Education is authori1.ed to transfer up to a legal level of I 0% of the total budget between functions within any fund; however, any revisions that alter the total expenditures of any fund must be approved by the Board of Education following the public hearing process mandated by law. 5. Formal budgetary integration is employed as a management control device during the year for aiJ governmental funds. 6. The District has adopted a legal budget for aU its Governmental Funds. Total actual expenditures for the governmental funds may not legally exceed the total budgeted for such funds. However, under the State Budget Act expenditures may exceed the budget if additional resources are available to finance such expenditures. 7. The budget lapses at the end of each fiscal year. (All appropriations lapse at year end.) c. Deposits and lnvestments investments held by the District which are short-term highly liquid investments having a remaining maturity of one year or less at the time of purchase are reported by the District at amor tized cost All other investments arc reponed at fair value. Gains or losses on the sale of investments are recognized upon realization. Unrealized gains and losses are real i:z.ed for those investments valued at fair value. f. Capital Assets Capital assets, which include land, buildings and improvements, and furniture and equipment, are reported in the government-wide financial statements. T he District detines capital assets as assets with an initial, individua.l cost of more than $5,000 l{lr furniture, equipment and land improvements and $25,000 for buildings and improvements and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair value at the date of donation. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend the life of an asset are not capitalized. 27 liSLE COMMUNITY UNIT SCHOOL DISTRJCT NO. 202 Notes to Financial Statements (Con!'d) June 30,2012 Buildings and improvements and furniture and equipment of the District are depreciated using the straight-line method over the following estimated useful lives: Assets Years Buildings and building improvements 50 years Land improvements 20 years Furniture, equipment and vehicles S-1 0 years g. Long-term obligations In the GWFS, long-term debt and other long-term obligations are reported as liabilities in the statement of net assets. Bond premiums and discounts, as well as issuance costs, are defen·ed and amortized over the life of the bonds using the straight-line method, which approximates the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are amortized over the term o f the related debt. In the FFS, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the cunent period. The tace 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 fmancing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. h. Fund Equity In the GWFS, net assets are reported as restricted when constraints placed on net assets are either externally imposed by creditors, grantors, contributors, or laws or regulations of other govern ments, or imposed by law through constitutional provisions or enabling legislation. When an expense is incurred for purposes for which both restricted and unrestricted net assets are available, the District's policy is to apply restricted net assets first. i. Property Ta.xcs Property taxes are levied each year on all taxable real property located in the District on or before the last Tuesday in December. The 20 II tax levy was adopted on December 19, 20 II. Taxes attach as an enforceable lien on prope1ty on Janua1y I and arc payable in two installments (on or about June I and September I) subsequent to the year of levy. The District receives significant distributions of tax receipts approximately one month after these due dates. 28 LISLE COMMUNITY UNIT SCHOOL DISTRICT NO. 202 Notes to Financial Statements (Conl'd) June 30, 2012 The following are the actual rates levied per $100 of assessed valuation: Maximum Actual 201 1 Levy 2011 Levy 201 0 Levy Educational 4.0000 3.3410 3.0137 Operations & Maintenance 0.7500 0.5485 0.5075 Oond & Interest 0.2551 0.2410 TranspoJtation 0.2000 0.1330 0.1945 Municipal Retirement 0.0416 0.0546 Social Security 0.0499 0.0494 Working Cash 0.0500 0.0002 0.0002 Tort Immunity 0.0002 0.0002 S!X)cial Education 0.8000 0.0234 0.0219 Total 4.3929 4.0830 j. J>ersonal Proper ty Replacement Taxes Personal property replacement tax revenues are first allocated to the extent required by Illinois law in the Mtmicipal Retirement/Social Security Fund with the balance a llocated to funds at the discretion of the District. k. Use of Estimates The preparation of financial statements requires management to make estimates and asswnp lions that affect the reported amounts of assets and liabilities and disclosure ofcontingent assets and liabilities at the date of the financial statements and the reported amOlmts of revenues and expendi tures during the reporting period. Actual results could differ from those estimates. I. Prior Year Comparative Informntion The basic financial statements include certain prior-year partial comparative information in total but not at the level of detail reqttircd for a presentation in conformity with the modified cash basis of accounting. Accordingly, such information should be read in conjunction with the District's financial statements for the year ended June 30, 2011 from which the partial information was derived. Also, certain amounts presented in the prior year data have been reclassified in order to be consistent with current year's presentation. 29 LISLE COMMUNITY UNIT SCHOOL DISTRICT NO. 202 Notes to Financial Statements (Cont'd) June 30, 2012 NOTE 2. CASH AND INVESTMENTS Custodial Credit Risk- Deposits Custodial credit risk is the risk that in the event of a bank failure, the District's deposits may not be returned to it. The District places a limit on the amount invested in any one depository to 25% of the District's funds at any time. As of June 30, 2012, none of the District's bank balances of $34,064,654 was exposed to custodial credit risk. Investments As of June 30, 20 I 2, the District had the following investments: Investment Maturities Fair Value State Investment Pool 60 days or less $ 9, 102,673 Total $ 9,102,673 Interest Rate Risk: The District does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses from increasing interest rates. Credit Risk: Under Illinois law, the District is restricted to investing funds in specific types of investment instruments. The following generally represents the types of instruments allowable by State laws. Securities issued or guaranteed by the United States. Interest-bearing accounts of banks and Savings and Loan Associations insured up to $250,000 by the Federal Deposit Insurance Corporation. Short-term obligations (Jess than 180 days) of U.S. corporations with assets over $500,000,000 rated in the three highest classifications by at least two rating agencies. Insured accounts of an Illinois credit union chartered under United States or Illinois law. Money market mutual funds with portfolios of securities issued or guaranteed by the United States or agreements to repurchase these same types of obligations. The lllino.is Funds or Illinois School District Liquid Asset Fund Plus. Repurchase agreements which meet instrument transaction requirements of Illinois Jaw. 30 LISLE COMMUNITY UNIT SCHOOL DISTRICT NO. 202 Notes to Financial Statements (Cont'd) June 30,2012 The District has no investment policy that would further limit its investment choices. As of June 30, 2012, the District's investments were rated as follows: Moody's Standard & Poors Investor Service Fitch State Investment Pool AAAm NIA N!A Concentration of Credit Risk: The District places a limit on the amount invested in any one issuer to 25% of the District's deposits and investments at any time. NOTE 3. CAPITAL ASSETS: A summary of changes in capital assets follows: Balance Balance Governmental Activities July I, 2011 Additions Deletions June 30, 20 I2 Capital assets, not being depreciated: Land $941,514 - - $941,5 14 Construction in Progress 72,038 $33,806 $72,038 33,806 Total capital assets not being depreciated $1,013,552 $33,806 $72,038 $975,320 Capital assets, being depreciated: Land improvements $1,069,548 $896,399 - $1 ,965,947 Buildings 37,407,814 - - 37,407,8 14 Equipment 2,390,695 65,645 - 2,456,340 Total capital assets being depreciated $40,868,057 $962,044 - $41,830,101 Accumulated depreciation fo r: Land improvements $938,972 $11,239 - $950,21 1 Buildings 12,63!,350 748,155 - 13,379,505 Equipment 2,155,025 38,915 - 2,193,940 Total accumulated depreciation $15,725,347 $798,309 - $16,523,656 - Total capital assets being depreciated, net $25,142,710 $163,735 - $25,306,445 Total ca1>ital assets, net $26, I 56,262 $ 197,541 $72,038 $26,281 >765 31 LISLE COMMUNITY UNIT SCHOOL DISTRICT NO. 202 Notes to Financial Statements (Coni' d) June 30,2012 Depreciation expense was charged to functions of the District as follows: Instructional services: Regular programs $708,704 Special programs 371 Other programs 19,063 Supporting services: Student 1,518 Instructional staff 28,828 District administration 3,038 School administration 3,797 Operations and maintenance of facilities 14,399 Food service 8,114 Central 10,477 $798,309 NOTE 4. CHANGES IN LONG-T ERM l>tm T: The following is a summary of long-term debt transactions of the District for the year ended June 30,2012: Balance Balance Amount Due July I, 2011 Additions Deletions June 30, 2012 in One Year Bonds Payable s ll ,460,000 $- $1,115,000 $10,345,000 $1,155,000 Capital Leases 100,709 182,420 135,315 147,814 87,022 Deferred Amounts for Issuance Prem ium/ (Discount) 58,345 - 6,898 51,447 - Deferred Amounts on Re funding (272,737) - (30,305) (242,4.32) - Totnl $11,346,317 $182,420 $1,226,908 $10,301,829 $ 1,242,022 Long-term debt at June 30, 2012 is comprised of the following: Bonds Payable 2005 General Obligation Limited Refunding School bonds due in varying installments from $615,000 to $885,000 through 2019, with an interest rate of4 .0%. 32 LISLE COMMUNITY UN IT SCHOOL DISTRICT N:>. 202 Notes to Financial Statements (Con!'d) June 30, 2012 20 I 0 General Obligation Limited School bonds due in varying in&allmentS from $540,000 to $555,000 through 2019, interest rates varying from 2.0% to 3.0%. Capital Leases The District has entered into agreements to lease teclmology equipment Such agreements are, in substance, purchases (capital leases) and are reported as capital lease obligations. Payments, including interest, are due i.t1 atmual installments of$91,741 in the fiscal year ending June 30,2013 and $62,467 in the fiscal year ending June 30,2014 at an interest rate of2.76%. Leased equipment under capital leases did not meet the District's capitalization threshold and thus are not included in capital assets at June 30,2012. The arumal requirements to amortize all debt outstanding as of June 30,2012, including interest payments of$1,847,507 are as follows: Yeor Ending Bonds Payable Capital Leases June 30, Principal Interest Principal Interest Total 2013 $1,155,000 $326,725 $87,022 $4,719 $1,573,466 2014 1,190,000 290,675 60,792 1,675 1,543,142 2015 1,225,000 253,225 - - 1,478,225 2016 1,265,000 212,875 - - 1,477,875 2017 1,315,000 169,413 - - 1,484,413 2018-2020 4,195,000 226,825 - - 4,421,825 Sl 0,345,000 $1,479,738 $147,814 $6,394 $1 1,978,946 General obligation bonds and capital leases are liquidated by the debt service fund. NOTE 5. RETIREMENT FlJND COMMITMF-NTS: Illinois Teachers' Retirement System: The District participates in the Teachers' Retirement System of the State oflllinois (TRS). TRS is a cost-sharing multiple-employer defined benefit pension plan that was created by the Illinois legislature for the benefit of IJiinois public school teachers employed outside the city of Chicago. The Illinois Pension Code outlines the benefit pwvisions ofTRS, 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 partici pating 33 LISLE COMMUNITY UNIT SCHOOL DISTRICT NO. 202 Notes to Financial Statements (Cont'd) June 30,2012 employers and members are also required. The TRS Board ofTrustees is responsible for the Sys tem's administration. TRS members include all active nonannuitants who are employed by a TRS-covered em ployer to provide services for which tcachet· certi1ication is required. The active member contribu tion rate for the year ended June 30, 2012 was 9.4% of creditable earnings. The same contribution rate applies to members whose first contributing service is on or after January I, 20 II, the eJTective 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. TI1e active member c<>niJibution rate was also 9.4% for the years ended June 30,2011 and 2010. The State of Illin<>is makes contributions directly to TRS on behalf of the District's TRS covered employees. On-behalf contributions. The State of lllinois makes employer pension contributions on behalf of the District. For the year ended June 30, 2012, State of Illinois contributions were based on 24.91% of creditable earnings not paid from federal funds, and the District recognized revenue and expenditures of$3,02 1,076 in pension contributions that the State of Illinois paid directly to TRS. f/or the years ended June 30,201 1 and June 30, 201 0, the State of Illinois contribution rates as percentages of creditable earnin,gs not paid from federal funds were 23.10% ($2,682,423) and 23.38% ($2,903,577), respectively. The District makes other types of employer coniJibutions 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 30,2012 were $70,821. Contributions for the years ending June 30,2011 and June 30,2010 were $68,376 and $72,031, respectively. Federal and special h·ust 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. Onder a policy adopted by the TRS Board of Trustees that was first effective for 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. For the year ended June 30, 2012, the employer pension contribution was 24.91% of salaries paid from federal and special trust funds. For the years ended June 30, 20 II and 20 I 0, the employer contribution was 23.10% and 23.38% of salaries paid from federal and special trust funds, respectively. For the year ended June 30,2012, salaries totaling $82,6 16 were paid from federal and special trust funds that required employer contributions of$20,580. For the years ended June 30,201 1 and June 30,2010, required District con tributions were $40,809 and $23,614, respectively. 34 LISLE COMMUNITY UNIT SCHOOL DISTRICT NO. 202 Notes to Financial Statements (Cont'd) June 30,2012 Early Retirement Option. The District is also required to make one-time employer contri· butions to TRS for members retiring under the Early Retirement Option (ERO). The pay ments vary depending on the age and salary of the member. The maximum employer ERO contribution is 117.5% and applies when the member is age 55 at retirement. For the year ended June 30, 2012, the District was not required to make payments to TRS fo r employer contributions under the ERO program. For the years ended June 30, 2011 and June 30,2010, the District paid $246,974 and $74,930 in employer ERO contributions, respectively. Salar-y 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 years ended June 30, 2012, 201 1, and 2010 the District did not grant salary increases in excess of 6% that were used to calculate retiree ftnal salaries. lfan employer grants sick leave days in excess of the noiDJal 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 (17.83% of salary during the year ended June 30, 2012). For the years ended June 30, 201 2, 2011 and 2010 the District did not grant sick leave days granted in excess of the normal annual allotment. TRS financial information, an explanation ofTRS 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, 20 I I. The report for the year ended June 30, 20 12, is expected to be available in late 2012. 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 website at www.trs.illinois.gov. 35 LISLE COMMUNITY UNIT SCHOOL DISTRICT NO. 202 Notes to Financial Statements (Cont' d) June 30, 20 I 2 Illinois Municipal Retirement Fund: Plan Description. The District's defined benefit pension plan fo r Regular employees provides retirement and disabi lity benefits, post retirement increases, and death benefits to plan members and beneficiaries. The 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.imr{.org. Funding Policy. As set by statute, the District's Regular plan members are required to contribute 4.5% of their annual covered salary. The statute requires the District to contribute the amount necessary, in addition to member contributions, to finance the retirement coverage of its own employees. The employer contribution rate for calendar year 20 II used by the employer was I 1.09% of annual covered payroll. The employer annual required contribution rate for calendar year 20 11 was 13.01%. The District also contributes for disability benefi ts, death benefits and supplemental retirement benefits, all of which are pooled at the IMRF level. Contri bution rates for disability and death benefits are set by the IMRF Board of Trustees, while tlte supplemental retirement benefits rate is set by statute. Annual Pension Cost. For calendar year ending December 31, 2011, the employer's actual contributions for pension cost were $279,718. Its required contribution for calendar year 20 I I was $328,145. Three-Year Trend Information for the Re!!Ular Plan Annual Pension Percentage of APC Net Pension Fiscal Yeur Endin!! Cost lAPC) Contributed Ohli!tation 12/311 11 $328,145 85% so 12/3111 0 287,668 85 0 12/3 L/09 228 847 100 0 The required contribution for 2011 was determined as part of the December 31, 2009, actuarial valuation using the entry age normal actuarial cost method. The actuarial assumptions at December 31, 2009, included (a) 7.5% invesunent rate of return (net of administrative and direct investment expenses), (b) projected salary increases of 4.0% a year, attributable to inflation, (c) additional projected salary increases ranging from 0.4% to I 0.0% per year depending on age and service, attributable to seniority/merit, and (d) post retirement benefit increases of3.0% annually. The actuarial value of the District's Regular plan assets was determined using techniqltes that spread the effects of short-term volatility in the market value of investments over a five-year period with a 20.0% corridor between the actuarial and market value ofa ssets. The District's Regular plan's unfunded actuarial accrued liability at December 31, 2009 is being amortized as a level percentage of projected payroll on an open 30 year basis. 36 LISLE COMMUNITY UNIT SCHOOL DISTRICT NO. 202 Notes to Financial Statements (Cont'd) June 30,2012 Funded Status and Funding Progress. As of December 31, 20 I J, the most recent actuarial valuation date, the Regular plan was 46.82% funded. The actuarial accrued Jiabiljty for benefits was $5,112,305 and tbe actuarial value of assets was $2,393,746, resulting in an underfunded actuarial accrued liability {UAAL) of$2,718,559. The covered payroll for calendar year 201 I (annual payroll ofactive employees covered by tbe plan) was $2,522,553 and tbe ratio of the UAAL to tbe covered payroll was I 08%. The schedule of funding progress, presented as other supplementary information to the 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. NOTE 6. OTHER POST EMPLOYMENT BENEFITS Teacher Health Insurance Security: The District participates in the Teacher Health Insurance Security (THIS) Fund, a cost sharing, multiple-employer defined benefit postemployment healthcare plan that was established by the lllinois legislature for the benefit of retired Illinois public school teachers employed outside the city of Chicago. The TH IS 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 (1RS). Annwtants may participate in tbe state administered participating provider option plan or choose from several managed care options. 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 wi th the Governor's approval. The Illinois Department ofHealthcare and Fam ily Services (HFS) and the Ulinois Department of Central Management Services (CMS) administer the plan with the cooperation ofTRS. Effective July I, 2012, in accordance with Executive Order 12-0 I, the plan is administered by CMS with tbecooperation ofTRS. 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 i11 the future will not exceed 105% of the percentage of salary actually required to be paid in the previous t'iscal year. On behalf contributions to THIS Fund. The State of Illinois makes employer retiree hcaltb insurance contributions on behalf of the District Stat-e contributions are intended to match contributions to THIS Fund from active members wruch were 0.88% ofpay during the year ended June 30, 2012. State of Illinois contributions were $107,453, and the District recognized revenue and expenditures of this amount during the year. 37 LISLE COMMUNITY UNIT SCHOOL DISTRICT NO. 202 Notes to Financial Statements (Coot'd ) June 30, 2012 State contributions intended to match active member contributions during the years ended June 30,2011 and June 30,2010 were 0.88% and 0.84% of pay, respectively. State contributions on behalf of District employees were $103,742 and $104,320, respectively. Employer contt·ibutions to THIS Fund. The District also makes contributions to THIS Ftmd . The District THIS Fund contribution was 0.66% during the years ended June 30, 2012 and June 30, 20 ll, and 0.63% during the year ended June 30, 2010. For the year ended June 30, 2012, the District paid $80,590 to the THIS Fw1d. For the years ended June 30, 2011 and June 30,2010, the District paid $77,807 and 878,240 to the THIS Fund, respectively, which was I 00% of the required contribution. The publicly available financial report of the THIS Fund may be obtained by writing to the Department of Healthcare and Family Services, 20 1 S. Grand Ave., Springfield, fL 62763-3838. Defined Postemplovment Benefit Plan: Pian Description: The District's Other Postemployment Benefits (OPEB) Plan is a single employer defined bene fi t healthcare plan that is administered by the District. Eligible employees that retire from the District may elect to continue their health care coveruge by paying the monthly premium. The District subsidizes a portion of the cost for hospital and medical coverage for eligible retired employees and their dependents. The subsidy is an implied age related cost differen ti al based upon the expected higher cost of coverage for retired employees versus the aver<~ge cost for the entire group. The District also reimburses retirees for a ponion ofthe cost ofhealth coverage at established rates. Benefit provisions are established lhrough contractual agreements and may only be amended through negotiations with the Board. The plan does not issue a separate, publicly available report. Funding Policy: Contribution requirements are established through contractual agreements and may only be amended through negotiations with the Board. The retiree is responsible for paying the full monthly premium. However, the District provides an annual reimbursement toward the premi um cost at establ ished rates. The District currently pays for postemployment health care benetits on a pay-as-you go basis. 38 LISLE COMMUNITY UNIT SCHOOL DISTRICT NO. 202 Notes to Financial Statements (Cont'd) June 30, 2012 Annual OPEB Cost and Nei OPEB Obligation: For fiscal year20 12, the District's annual OPEB cost for the plan was $223,800. The District's annual OPEB cost, the percentage ofannual OPEB cost contributed to the plan, and the net OPEB obl igation for the year ended June 30, 2012, were as follows: Annual required contribution $ 224,805 Interest on net OPEB obligation (4,197) Adjustment to annual required contri bution 3 192 Annual OPEB cost 223,800 Contributions made (271.768) Decrease in net OPEB obligation (47,968) Net OPEB obligation (asset)-July I, 20 II (83.945} Net OPEB obligation (asset)-June 30,2012 $ (]31 913) Trend Information: The District's annual OPEB cost, the percentage of the annual OPEB cost contribution to the plan, and the net OPEI3 asset is as follows : Trend lnform!ltion for the Plan Actual Fiscal Year AnnualOPEB ElnJ>loyer Percentage of Net Pension Ending Cost Contribution APC Contribuhld Asset 6/30112 $223,800 $271 768 121% $131 913 6/30/11 225,421 257 849 114 83,945 6/30/10 205,245 251,568 123 51,115 Funding Status and Funding Progress: The funded status of the plan as of June 30, 2011, the most recent actuarial valuation date, is as follows: Actuarial accrued liability (AAL) $ 2,111,640 Actuarial value of plan assets Unfunded actuarial accrued liability (UAAL) $ 2. I l l .640 Funded ratio (actuarial value of plan assets I AAL) 0% Covered payroll (active plan members) S 12,630,764 UAAL as a percentage of covered payroll 16.72% The schedule of funding progress presented as other supplementary information to the financial statements, presents multiyear trend information that shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for 39 LISLE COMMUNITY UNIT SCHOOL DISTRICT NO. 202 Notes to Financial Statements (Cont'd) June 30,2012 benefits. Because fiscal year 2009 was the year of implementation of GASB Statement No. 45 and the District elected to apply the statement prospectively, only two years is presented in the schedule at this time. In future years, required trend data will be presented. Actuarial Methods and Assumptions: Actuarial valuations for an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Actuarially determined amowlts are subject to continuous revision as actual results are compared to past expectations and new estimates about the future are formulated. Although the valuation results are based on values which the District's actuarial consultant believes are reasonable assumptions, the valuation results reflect a long-term perspective and, as such, are merely an estimate of what future costs may actually be. Deviations in any of several factors, such as future interest rates, medical cost inflation, Medicare coverage, and changes in marital status, could result in actual cosis being less or greater than estimated. Projection of benefits for fmancial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-te1m volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. In the actuarial valuation for the plan as of June 30, 20 II the entry age normal method was used. The actuarial assumptions included a 5.000/o discount rate and an annual healthcare cost trend rate of9% initially. reduced to an ultimate rate of 5% after five years. Both rates included a 2.5% inflation assumption. The UAAL will be amortized as a level dollar amount of projected payroll on a closed group valuation basis. The remaining amortization period is 29 years. NOTE 7. COMMITMENTS The District has entered into contractual commitmenis related to site improvements. As of June 30,2012, remaining commitments under these contracts are $425,054. The District intends to fund these commitments from cash on hand in the Operations and Maintenance Account. NOTE 8. RESTRICTED NET ASSETS The government-wide statement of net assets reports $4,020,167 of restricted net assets, all of which is restricted by enabling legislation. 40 LISLE COMMUNITY UNIT SCHOOL DISTRICT NO. 202 Notes to Financial Statements (Conl'd) June 30, 2012 NOTE 9. FUND BALANCES- GOVERNMENTAL FUNDS: The District's fund balances for Governmental Funds are classified as follows: Nonspendable - The nonspendable fund balance classitication includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact The "not in spendable form" criterion includes items that are not expected to be conve1ted to cash, for example inventories and prepaid amounts. Due to the cash basis nature of the district all such items are expensed at the time of purchase, so there is notl1ing to report for this classification. Restricted Fund Balance - The restricted fund balance classification refers to amounts that arc subject to outside restrictions, not controlled by the District. Things such as restrictions imposed by creditors, grantors, contributors, or laws and regulations of other governments, or imposed by law through constitutional provisions or enabling legislation. Special Revenue Funds are by definition restricted for those specified purposes. Committed - The committed ftmd balance classification refers to amounts that can only be used for specific purposes as determined by a formal action of the District's highest level of decision making authority (the School Board). Commitments may be established, modified, or rescinded only through resolutions approved by the School Board. Committed fund balance also incorporates contractual obligations to the extent tl1at existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. Assigned-The assigned fund balance classification refers to amounts that are constrained by the District's intent to be used for a specific purpose, but are neither restricted nor committed. Intent may be expressed by the School Board itself or the School Board may delegate the authority to assign amounts. Currently the School Board has not delegated the authority. Unassigned-The unassigned t\md balance classification is the residual classification for amounts in the General Fund that have not been restricted, committed, or assigned to specific purposes and any deficit fund balances in other funds. Unassigned Fund Balance amounts are shown in the f-inancial statements as Unreserved Fund Balances in tbe Educational, Operations and Maintenance, Working Cash Accounts and Municipal Retirement/Social Security Funds. 41 LISLE COMMUNITY UNIT SCHOOL DISTRICT N:>. 202 Notes to Financial Statements (Cont'd) June 30,2012 As of .Tune 30,2012, fund balances are composed of the following: Nonmajor Total General Governmental Governmental Fund Funds Funds Restricted: Debt service $ $1,745,236 $1,745,236 Retirement 786,561 786,561 Transportation .1,373,143 I ,3 73,143 Assigned: Contractual obligations 425,054 425,054 Unassigned 38,705,905 38,705,905 Total fund balances $39,130,959 $3,904,940 $43,035,899 ·when an expenditure is incurred for purposes for which both restticted and unrestricted ftmd bahmce is available, the District considers restricted funds to have been spent first. When an expenditure is incurred for which committed, assigned, or unassigned fund balances are available, the District considers amounts to have been spent first out of committed funds, then assigned funds, and finally unassigned funds, as needed, unle-ss the Board or the finance committee has provided otherwise in its commitment or assignment actions. The District has adopted a minimum fund balance policy for the Operating Funds. Operating Funds are defined as the Educational Account, Operations and Maintenance Account, Transportation Fund, and Municipal Retirement Fund. The policy requires the sum of the unassigned fund balance of the Operating Funds plus Working Cash Fund at the end of the fiscal year, exclusive of early real estate tax receipts, to be no Jess than the equivalent of 90 days of the average daily expenditures of the Operating Funds. NOTE 10. INTERFUND TRANSFERS: At June 30, 2012, interfund transfers consisted of the following: Transfer to Transfer from Amount Debt Services Fund Educational Account $140,560 Transportation Fund Working Cash Account 23,014 Transfers are used to (l) move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them, and (2) use unrestricted revenues collected to finance various programs accounted for in other funds in accordance with budgetat-y authorizations. 42 LISLE COMMUNITY UNIT SCHOOL DISTRICT NO. 202 Notes to Financial Statements (Cout'd) June 30,2012 Effective July I, 2008, The Illinois Program Accounting Manual was modified to require that all debt service payments be reported in the Debt Services Fund. However, certain debt service payments are funded by sources other than a debt service levy. Accordingly, interfund transfeJS are required to transfer the proceeds of these other fi.mding sources from the fu nd in which they are required to be deposited, to the Debt Services Fund from which the debt service payments will be made. NOTE 11. RISK MANAGEMENT: TI1e District bas purchased insurance coverage through risk pools (Sec Notes 12, 13 and 14) and from private insurance companies. Risks covered include general liability, property damage, workers compensation, medical and other. Premiums have been recorded as expenditures disbursed in appropriate fimds. A portion of the premiums were funded by a tort immunity tax levy. Expenditures from that levy totaled $1,228 of general insurance premiums. During each of the three years ended June 30,2011,2010 and 2009, settlements had not exceeded insurance coverage. NOTE 12. SUBURBAN SCHOOL COOl'ERATlVE INSURANCE POOL CSSCIP): The District is a member of SSCIP, a voluntary cooperative agency consisting of Illinois public school districts and joint agrcemertts. SSCIP's purpose is to manage and fund first-party property losses and third-party liability claims of its members. Each member district has a financial responsibility to make armual contributions based on property values, sntdent enrollment, personnel employed, past loss history and vehicles owned. Complete financial statements of SSClP are available from its treasurer. NOTE 13. SCHOOL EMPLOYEES LOSS JfUN.D The District is a member of SELF, which has been formed to reduce local school distri.cts' workers' compensation costs. SELF is controlled by a Board ofDirectors which is composed of representatives designated by each school district. The day-to-day operations of SELF are managed through an Executive Board elected by the Board ofDirectors . Each member district has a fi.nancial responsibility for annual membership contributions, which are calculated to provide for administrative expenses, specific and aggregate excess insurance coverage, and the funding of a portion of anticipated losses and loss adjustment expenses which will be borne directly by the membership. The losses and loss adjustment expenses to be borne by the membership are those which must be incurred prior to the attachment of excess insurance coverage. Complete financial statements for SELF can be obtained from their accountant at Two Pierce Place, Itasca, Ill inois 60143. 43 LISLE COMMUNITY UNIT SCHOOL DISTRICT NO. 202 Notes to Financial Statements (Cont'd ) June 30, 2012 NOTE 14. EDUCATIONAL BEl\'EFIT COOPERATIVE (EBC): The District is a member ofEBC, which was formed in 1984 as a voluntary cooperative agency of Illinois Public School Di str i cL~ and Joint Agreements. The purpose of EBC is to administer some or all of the employee benefit programs offered by the member districts to their employees and employees' dependents. ESC administers the payment of claims tlu1t arise under the benefit programs offered by each member district. Additionally, EBC offers to its members, group life insurance coverage obtained through an outside insurance company. Monthly medical and dental contributions are estimated by the Plan's administrator in advance of each membership year based upon each district's plan of coverage, estimated enroHroent, estimated claim costs and service fees. Complete financial statements for ESC can be obtained from its treasurer at 1105 North Hunt Club Road, Gurnee, Illinois 60031. NOTE 15 ..JOINT VENTURE- SCHOOL ASSOCIATION FOR SPECIAL EDUCATION IN DUP!}GE COUNTY (SASED): The District has entered into a joint agreement with other districts in DuPage County to provide special education programs and services to the students enrolled. Each member district has a imancial responsibility for annual and special assessments as established by tJ1c policy board. Complete flnancial statements for SASED ean be obtained from its business ofllce at 6 S 331 Cornwall Road, Naperville, lllinois 60540. NOTE 16. JOINT VENTURE- DUPAGE AREA OCCUPATIONAL EDUCATION SYSTEM (DAOES): The district is a member of DAOES, a joint agreement to provide vocational education programs and services to the students enrolled. Each member district has a financial responsibility for annual and special assessments as established by the governing board. Complete financial statements for DAOES can be obtained from the Administrative Offices located at the Technology Center ofDuPage at 301 South Swift Road, Addison, Illinois 60101- 1499. 44 SUPPLEMENTARY FINANCIAL INFORMATION LISLE COMM UNITY UNIT SCHOOL DISTRICT NO. 201 COMBINING STATEMENT OF ASSETS AND LIABILITIES ARISING FROM CASII TRANSACTIONS BY ACCOUNT GENERAL FUND JUNE 30,2012 Operations and Working Ton Total Edu¢iltional Maintenance Cnsh Immunity General ASSETS Cnsh hnd in"cstmcnts $25,917,323 $ 7,423.369 $ 5,790,267 _;$.._ __ $39,130,959 TOTAL ASSETS $25.?17,323 $ 7,423,369 $5,790,267 ,.;S;;.,.,=;,. $39,130.959 I.IAlliLI'I'IES AND FUND BALANCE Ll•billlit$: OtiM:r current liabilities $ 10.000 s s $ s 10.000 TOitll Linbilities 10.000 10,000 Fund Unlnnce: Assisncd 425,054 425,054 U noss i ~ned 25,907,323 6,998,315 5,790,267 38.695.905 1'oml l'und Halance 25,907,323 7,423,369 5,790,267 39.120,959 TOTAL. LIABILITIES AND FUND I)AI, ANCE $25.917.323 $ 7.423.369 $ 5,790,267 $ $39. 130.959 45 LISLE COMMUNITY UNIT SCHOOL DJSTRlCT NO. 2(}2 COMBINING STATEMENT OF REVENUES RECEIVED, EXPENDITURES DISBURSED AND CHANGES IN FUND BAL ANCK'> BY ACCOUNT GENERAL FUND YEAR ENDED JUNE 30,:2012 Operlltions and Working Tort Toral Educational Maintenance Cash Immunity General REVENUE:S RECEIVED: Property taxes $ 19,602,424 $ 3,235,880 $ 1,228 $ 1,228 $ 22,840,760 Other local sources 1,16 1,474 170,174 23,013 1,354,661 State sources 4,655,970 5,121 4,661,091 Federal sources 1260,947 1,260,947 Total Revenues Received 26,680,815 3,411,175 24,241 1,228 30,117,459 EXPENDITURES DISBURSED: Instruction 17,057,78 I 17,(}57,781 Suppol'ting services 6,529,452 2,903,234 1,228 9,433,914 Community services 99,730 99,730 Payments to other districts and govemmental units 1,186,137 1,186.137 Total Expend itlll'es Disbursed 24,873,100 2,903,234 1,228 27,777,562 Excess of revenues received over expenditures disbursed 1,807,715 507,941 24,241 2,339,897 OTHER FINANCING SOURCES (USES): Capital lease proceeds 182,420 182,420 Transfers out (140,560) (23,014) (163,574) Total other financing sources (uses) 4 1,860 (23,01'1) 18,846 Net change in fund balances 1,849,575 507,94 1 1,227 2,358,743 Fund balance at beginning of year 24,057,748 6,915,428 5,789,040 36,762,216 fUND 8t\LANCE AT f.ND OF YEAR $ 25,907,323 $ 7,423,369 $5,790,267 $ $ 39,120,959 46 LISLE COMMUNITY UNIT SCHOOL DISTRICT NO. 202 SCIIEDULE OF REVENUES RECEIVED, EXPENDITURES DISBURSED AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL EDUCATIONAL ACCOUNT YEAR ENDED JUNE 30, 2012 WITH COMPARATIVE. ACTUAL TOTAl..$ FOR 2011 2012 final 20 11 Budj!CI Actual Actual REVENUES RECEIVED: l-ocal Sources: Pro1>eny taxes General tax levy $ 18,949,458 $ 19,463,582 $ 19,264,232 Special education tax levy 137,702 138,842 137,259 Corporate replacement taxes 300,000 299.563 343,573 Eamings on invesm1ents 94,950 92,638 J69,n9 Food services 238,250 262,003 253,632 Pupil activities 111,025 102,410 127,785 1'extbooks 173,800 179,390 165,312 Contributions and donations rrom private sources 14,000 17,800 12,900 Impact tees 58,380 100 Refund of prior years' expenditures 5,000 569 10,773 Dri vel's' cducntion fees 11 6,150 109,269 108,811 Other so 100 39 452 39,136 Total Local Sources 20, 190,435 20,763,898 20,633,242 Stntc Sources: General state aid 463,209 463,209 443,983 Special education 903,940 919.622 979,768 Vocational education 11.589 Bilingual education 16,200 21,860 602 School lunch aid 2,700 4,248 3,801 Drivers' education 49,000 24,346 49,114 Early childhood 81,417 51,786 Re Total Stnte Sources $ 4,285,049 $ •1,655,970 $ 4,339,816 47 (Continued) LISLE COMMUNITY UNIT SCHOOL DISTRICT NO. 202 SCHEDULE Of REVENUES RECEIVED, EXPENDITURES DISBURSED AND CHANGES IN fUND BALANCE BUDGET AND ACTUAL EDUCATIONAL ACCOUNT YEAR ENDED JUNE 30, 2012 WITH COMPARATIVE ACTUAL TOTALS FOR 2011 201 2 Final 2011 Budge! Actual Actual REVENU ES RECEIVED - Continued Federal Sources: School lunch progmms s 100,000 $ 164,729 $ 151,062 Tille I - low income 112,853 128,459 11 2,768 Tille IV -safe & drug free schools 1,2 19 IDEA - preschool flow-d1rough 11,526 II, 125 11 ,961 IDEA- flow lhrough 498,614 494,1 t3 408,881 IDEA • room and board 11,800 83,442 18,935 ARRA • IDEA ·Pan B- preschool 3,685 10,719 3,342 ARRA ·IDEA- Part B - flow-1hrough 30~000 174,879 286,744 ARRA ·other 40,425 Title II -teacher quali ly 84,856 42,202 75,650 Medica id programs 62,000 151 279 69,62 7 Tolal Federal Sources 91 5,334 1,260,947 1,180,614 Toral Revenues Received $ 25,390,818 $ 26,680,815 $ 26,1 53,672 EXPENDITURES DISBURSED: lnsLruclion: Regulw· programs: Salaries 6,633,265 6,581,285 6,222,546 Employee benefits 1,789,555 1,773,378 1,596,859 On-behalf paymems - State of Illinois 2,850,000 3, 12&,529 2,786, 165 P\orchased services 11 ,250 50,005 46,819 Supplies and materials 560,780 482,347 <162,299 Capital outlay 20,000 19,431 6,51 4 Other 33,400 19,878 21,272 Non-capitalized equ ipmenl 147,824 26 1,703 192,410 l'rivato Tuition 14,650 1'cl'lnlnalion benefils 650 Total 12,1 06,074 12,33 1,206 11 ,335,534 Pro-K progmms: Salaries 34,811 39,059 Employee benefits 15,472 14.032 Purchased services 158 Supplies and materials 3,212 3,106 Tolal $ 53,495 $ 56) 55 48 (Continued) LISLE COMMUNITY UNIT SCHOOL DISTRICT NO. 202 SCIIEDULE OF REVENUES RECEIVED. EXPENDITURES DISBURSED AND CI IANGES IN FUND BALANCE BUDGET AND ACTUAL EDUCATIONAL ACCOUNT YEAR ENDED JUNE 30, 2012 WITH COMPARATIVE ACTUAL TOTALS FOR 2011 20 12 Final 2011 Budaer Aclual Actual F:XPENDITURES DISDURSEO- Continued Instruction- Continued: Special programs: Salaries $ 1,364,792 $ 1.36 1,319 $ 1,4 13,537 Employee benefits 500,371 500,918 503,329 Pun:hased services 19,500 18,838 22,348 Supplies and materials 22,378 17,846 60,991 Non-capitalized equipment 1,800 2.485 93,987 Tuition 856.000 884,051 735.578 Total 2,764,841 2,785,457 2,829,770 Special programs pre-k: Salaries 11 2,772 88, 181 120,216 Employee benefits 52,9 15 ~8,5 8 8 50,265 Purchased services 4 15 2 11 483 Supplies and materials 8,500 6,520 3.265 Total 174,602 143.500 174,229 Educationally deprived: Salaries 223,706 224,504 208,672 Employee benefits 54,100 69,773 56,328 Supplies and materials 4,000 1,830 351 Total 28 1,806 296,107 265,351 ca,-ccr and technical education: Salaries 171,952 166,027 206,41 5 Gmployce benefits 36,050 27,620 38,555 Pun:hased services 3,500 2,630 2,216 Supplies and materials 11,900 10 354 11,767 Tolal 223,402 206 631 258,953 Interscholastic programs: Salaries 492,948 475,316 455,425 Employee benefits 51,575 48,005 44,039 Purchased services 111,450 115,529 106,037 Supplies and materials 60,500 55.003 51,656 Other 31,200 28,497 21 ,861 Non-capitalized equipment 8,000 6 168 6,740 Total $ 761,673 s 728,518 $ 685,758 49 (Coniinued) LISLE COMMUNITY UNIT SCHOOL DISTRICT NO. 202 SCHEDULE OF REVENUES RECEIVED, EXPENDITURES DISBURSED AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL EDUCATIONAL ACCOUNT YEAR ENDED JUNE 30,2012 WITH COM PA RATIVE ACTUAL TOTALS FOR 2011 2012 Final 20 11 Bud&et Aclltal Actual EXPENDITURES DISBURSED - Continued Instruction - Continued: Summer school: Salaries $ 5,100 $ 4,620 s 5,040 Employee bene fils 550 486 53 1 Supplies and materials 30 Total 5 650 5,106 5,60 1 Gifted: Salaries 41,586 47,452 45,515 Employee bene filS 1,230 942 924 Supplies and materials 1,000 718 373 Total 49,816 49,112 46,812 Driver's education progrllms: Salaries 185,730 184,836 181 ,024 Employee benefits 55,370 45,922 52,090 Purchased services 13,000 11,270 10,200 Supplies and materials 9,700 7,301 7,457 Other 2.000 I 160 1.571 Total 265,800 250 489 252,342 Bilingual: Salaries 163,059 162,175 I53,278 Employee benefits 43,870 42,493 40,260 Purchased services 700 580 400 Supplies and materials 3,000 2912 1.950 Total 210,629 208,160 195.888 Truam alternative and optional: Other 6,150 Total 6 150 Total Instruction $ 16,844,293 $ 17.057,781 $ 16,112.743 50 (Coni inucd) LISLECOMMU lTV UN IT SCHOOL DISTRICT NO. 202 SCHEDULE OF REVENUES RECEIVED, EXPENDITURES DISBURSED AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL EDUCATIONAL ACCOUNT YEAR ENDED JUNE 30,2012 \VITI I COMPARATIVE ACTUAL TOTALS FOR 2011 2012 Final 20 11 Budget Actuul Actual EXPENDITURES DISBURSED - Continued S\lpport Services: Pupils: Attendance and social work : Snlaries $ 185,170 $ 184,349 $ 156,584 Employee benefits 61,040 58.945 50,534 Purchased services 1,200 544 139 Supplies and materials 1,800 1,084 1,060 Total 249,210 244,922 208.317 Guidance services Salaries 271,889 269,458 267,965 Employee benefits 82,170 71,985 70,236 l'u1·chased services 1,100 5,225 659 Supplies and materials 5,000 5,073 5,470 Other 800 340 535 Total 360,959 352,081 344,865 llealth services: Salaries 233,8.34 231.717 224,820 Employee benefits 66,890 66,480 62,417 Purchased services 1,620 719 1,340 Supplies and materials 4,500 4,239 3,997 Non-capitalized equipment 600 500 Total 307,44<1 303,155 293,074 Psychological services: Salaries 239,500 238,206 225,582 Employee benefits 61,550 63,118 58,845 Purchased services 13,700 14,618 7,571 Supplies and materials 1,200 20 2,119 Non-capitalized equipment 600 Total $ 316,550 $ 315,962 $ 294.117 51 (Continued) LISLE COMMUNITY UNIT SCHOOL DISTRICT NO. 202 SCHEDULE OF REVENUES RECEIVED, EXPENDITURES DISBURSED AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL EDUCATIONAL ACCOUNT YEAR ENDED JUNE 30, 2012 WITH COMPARATIVE ACTUAL TOTALS I'OR 2011 2012 Final 2011 Budget Actual Actual exP.ENDITURES DISBURSED- Continued Suppoo1 Services - Continued: Pupi ls - Continued: Speech pathology: Sa lades s 194,272 $ 205,906 $ 190,969 Employee benefits 38.200 36,555 34,053 Purchased sef'Vices 2,200 2,516 1,361 Supplies and materials 3.800 3.088 3,159 Total 238,472 248,065 229,542 Total t>upils 1,472,635 1,464, 185 1,369,915 lnstnoctional Staff: Improvement of instructional services: Suluries 336,809 37 1,660 358,241 Gonployce bener.ts 56,210 71,645 68,646 Put'Chascd services 203,523 124,055 200,967 Supplies and materials 91, 128 67,223 86,038 Capital outlay 10,000 Other 3,000 1,083 2,401 Non-capitalized equipment 12.000 1,399 566 Total 712,670 637,065 716,859 Educational media services: Salaries 372,135 365,2<19 356,486 Employee benefits 96,700 88,553 87,087 l'lii'Chascd services 9,700 5,046 2,543 Supplies and materials 96,525 70,265 92,536 Other 300 195 65 Non-capitalized equipment 5 000 4 198 Total 580,360 529,308 542 915 Assessment and testing: Purchased services 49,000 28,048 58,230 Supplies and materials 11,000 3,185 3.135 Total 60,000 31 ,233 61,365 Total Instructional Staff $ 1)53,030 $ 1,197,606 $ 1,32 1,139 52 (Continued) LISLE COMMUN ITY UN IT SCHOOL DIS'TRICf NO. 202 SCHEDULE OF REVENUES RECEIVED, EXPENDITURES DISBURSED AND CHANGES IN FUND BALANCE BUDGET AND ACfUAL EDUCATIONAL ACCOUNT YEAR ENDED JUN£ 30, 2012 WITII COMPARATIVE ACfUAL TOTALS FOR 2011 2012 Final 20 11 Budj~Cl Actunl Actual F,XI'EN DIT URES OISilURSF. D ·Continued Suppon Services • Continued: General Administration: Boao·d ofed ucation: Salaries $ 43,800 s 42,363 $ 43,457 employee benefits 302,200 273,285 506,282 Purchased services 351,100 325,872 311,939 Supplies and materials 4,000 4,942 2,736 Other 10.300 10,143 9,361 Non-capitalized equipment 3,000 Totnl 714,400 656.605 873,775 Executive administration: Salaries 275,700 253, 185 254,747 Employee bene.ftts 75,450 75,894 68,892 Plll'chased services 3,000 1,525 1,913 Supplies and materials 1,000 718 ?- 'J Other 4,000 2,023 1,335 Tennination benefits 12 705 Total 359,150 346,050 326,910 Special area administration: Salaries 154,200 151,660 144,217 Employee benefits 61,685 65,138 52,339 Purchased services 6,000 5.723 941 Supplies and materials 3,000 1,722 1, 122 OUw 500 461 402 Non-copitatizcd equipment 2,500 2 322 Totul 227,885 227,026 199.021 Total General Administration s 1,301,435 $ 1,229,681 $ 1,399,706 53 (Continued) LISLE COMMUN ITY UNIT SCHOOL DISTRICT NO. 202 SCH£DULE OF REVENUES RECEIVED, EXPENDITURES DISBURSED AND O IANOES IN FUND BALANCE BUDGET AND ACTUAL EDUCATIONAL ACCOUNT YEAR £;:N DED JUNE 30,2012 WITH COMPARATIVE ACTUAL TOTALS FOR 20 11 2012 Final 20ll Bud&et Actual Actual EXPENDITURES DISBURS ED · Continued Support Services · Continued: School Administration: Otlice of the principal: Salaries $ I ,044,49 J $ 1,035,460 $ 996,407 Employee benefils 334.800 325,605 31 3,685 Purchased services 13 1,000 104,817 119,589 Supplies and matcl'ials 17.400 8, 175 11,343 Otller 4,375 3,006 1,895 Non-capitalized equipment 6,500 2,576 Tenoination benefits 11,101 Total 1,538,566 1,477.063 I,4 56,596 Total School Aclminlstrntion 1,538,566 I 477,063 1,456,596 Business: Direction of business support services: Salaries 81 ,600 91.087 108.600 Employee benefilS 27,295 31,479 31,376 Otller 500 250 250 Total 109.395 122,816 140.226 Fiscal services: Salaties 184,600 204,630 220,728 Employee bcnetits 52,800 55,374 57,381 Purchased services 38,000 35,796 26,765 Suppl ies and materials 12,000 11 ,582 11,320 Orner 500 250 250 Noo..:apitalized equipment 8,000 2,471 Total 295,900 310,103 3 16,444 Food services Pm·chased scevices 373,000 370,334 360,3 16 Supplies and materials 1,500 15,1 31 17,202 Capital outlay 20,000 7,796 Noo-capitali7.ed equipment 1,754 16,206 1,563 Total 396,254 401,671 386,&n Total Business j) 801,549 s 834,590 $ 843,547 54 (Cont inued) LISLE COMMUNITY UNIT SC HOOL DISTRICT NO. 202 SCHEDULE OF REVENUES RECEIVED, EXPENDITURES DISBURSED AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL EDUCATIONAL ACCOUNT YEAR ENDED JUNE 30,2012 WITI-1 COMPARATIVE ACTUAL TOTALS FOR 20 I I 20 12 Final 2011 Bud!(el AC1ual AC1ual EXPENDITURES OISOURSED ·Continued lfdta processing services: Salaries s 2 19,684 $ 220,340 $ 204,233 Employee. benefits 56,275 52,791 45,038 Purchased services 51,000 30,048 33,638 Supplies and mmerials 10,000 8,054 2,344 Capital outlay 25,000 6,233 5,186 Non-capitalized equipment 24,000 8,861 31,263 Total 385,959 326,327 321,702 Total Centml 385,959 326,327 321,702 Total Suppo11 Services 6,853, 171( 6,529,452 6,7 12,605 Community Services: Salaries 30,899 35,500 24,495 Employee benefits 4,420 10,714 9,884 Purchased services 41,859 37,629 38,064 Supplies and materials 6,734 15,887 31,033 Non-capitalized equipment 1,755 Total Community Se,·vices 83 ,912 99,730 105,231 Payments to other districts and governmental units: Special education - tuition 1,206,500 1,078,875 1,153,469 CTE- tuition 125,000 103,752 104,371 Other - tuition 3,51 0 Total payments to other districts and govemmemalunits 1,331,500 1,1 86,137 1,257.840 Total Expenditures Disbursed 25,112,879 24,873,100 24,188,419 Excess ofrevenues received over expenditures disbUI'Sed s 277,939 $ 1,807,715 $ 1,965,253 55 (Continued) LISLE COMMUN ITY UN IT SCHOO L DISTRICT NO. 202 SCIIEDULE OF REVENUES RECEIVED, EXPENDITURES DISBURSED AND CHANGES IN I' UND BALANCE BUDGET AND ACTUAL EDUCATIONAL ACCOUNT YEAR ENDED JUNE 30,2012 WITH COMPARATIVE ACTUAL TOTALS FOR 2011 2012 Pinal 201 I Budget Actual Actual OTHER FINANCING SOURCES (USES): Capitul lease proceeds $ s 182,420 $ 83,651 Transfe rs out (147,000) ( 140,560) (190,032) Total other nnancing sources (uses) (147,000) 41 860 (106,381) Net change in fund balances s 130.939 1,849,575 1,858,872 Fund balance at beginning ofyear 24,057,748 22,198,876 folJNO BALANCE AT END OF YEAR $ 25,907,323 $ 24,057,748 56 USLE COMMUNITY UNIT SCHOOL DISTRICT NO. 202 SCHEDULE OF REVCNUES RECEIVED, EXPENDITURES DISBURSED AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL OPERATIONS AND MAINTENANCE ACCOUNT YEAR ENDED JUNE 30,2012 WITH COMPARATIVE ACTUAL TOTt\LS POR 2011 2012 Final 2011 Budget Actual Actual REVENUES RECEIVED: Local Sources: Property taxes s 3,191,039 $ 3,235,880 $ 3, 184,835 Earnings on investments 35,150 27,307 48,286 Rentals 100,000 97,21 0 91,292 Refund of prior years' expenditures 3,000 3,101 Otl1er 25,000 45,657 24,91 I Total Local Sources 3,354,1 89 3,406,054 3,352,425 State Sources: Other 5,121 8.195 Total State Sources 5,12 1 8 195 Total Revenues Received 3,354,189 3,411,175 3.360,620 EXPENDITURES DISBURSED: Support Services: Business- facilities acquisiti(m and COt1StrucLion: Capital outlay I,250,000 858, I 67 72,038 Non-capitalized equipment 22.098 Tot.al fflcilities acquisition ~tnd consLruction 1,250,000 880,265 72,038 Business~ op-er..ttion Total operati011 and rnainte11ance of plant services 2,504,752 2,022,969 2,053,268 Total Support Services 3,754,752 2,903,234 2,125,306 Provision for contingencies 20,000 Total Expenditures Disbursed $ 3,774,752 $ 2,903,234 s 2,1 25,306 57 (Continued) LISLE COMMUNITY UNIT SCHOOL DISTRICT NO. 202 SCHEDULE OF REVENUES RECEIVED, EXPENDITURES DISBURSED AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL OPERATIONS ANI) MAINTENANCE ACCOUNT YEAR ENDED JUNE 30, 2012 WITH COMPARAT I VE ACTUAL TOTALS FOR 201 J 2012 Final 20 11 Budget Acmal Actual Excess (deficiency) (}f revenues received over expenditures disbursed $ (420,563) $ 507,941 $ 1,235,3 14 Net change in fund balances $ (420,563) 507,941 1,235,31 4 Fund balance at beginning ofye(lr 6,91 5,428 5,680,1 14 FUND BALANCE AT END OF YEAR $ 7,423,369 $ 6,915,428 58 LISLE COMMUNITY UN IT SCHOOL OISTRICf NO. 202 SCHEDULE OF REVENUES RECEIVED, EXPENDITURES DISBURSED AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL WORKING CASH ACCOUNT YEAR ENDED JUNE 30,2012 WITH COMPARATIVE ACTUAL TOTALS FOR 2011 2012 Final 2011 Bud~et Actual Actual REVENUES RECEIVED: Local Sources: Property taxes $ 1,247 $ 1,228 $ 1,321 Earnings on investments 24,001 23,013 41 ,699 Total Local Sources 25,248 24,241 43,020 Total Revenues Received 25,248 24,241 43,020 Excess of1·evenues received over expenditures disbursed 25,248 24 241 43,020 OTifER FINANCING SOURCES (USF-$): Principal on bonds sold 560,472 Transfers out (24,000) (23,0 14) (41,699) Total other financing sources (uses) ~24,0002 (23,0 14) 518,773 Net change in fun d balances $ 1,248 1,227 561)93 Fund balance at beginning of year 5,789,040 5,227,247 FUND BALANCE AT END Of YEAR s 5,790).67 $ 5,789,040 59 LISLE COMMUNITY UNIT SCHOOL DISTRICT NO. 202 SOIEDULE OF REVENUES RECEIVED, EXPENDITURES DISBURSED AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL TORT IMMUNITY ACCOUNT YEAR ENDED JUNE 30,2012 WITH COMPARATIVE ACTUAL TOTALS FOR 2011 2012 Final 2011 Budget Actual Actual IU:.:VENUES RECEIVE{): Local Sources: Properly !axes 1,258 s 1,228 $ 1,321 Earnings on investments 2 Totnl Lo<:a1 Sources 1,260 1,228 1,321 Tocal Revenues Received 1,260 1,228 1,321 EXPENDITURES DISBURSED: SupJ>Orl Services: Pw·chascd se•vices 1,500 1,228 1,321 Total Support Services 1,500 1,228 1,32 1 Tocal Expendicures Disbursed 1,500 I 228 1,32 1 Deficiency of revenues received over expcndilu•"CS disbursed (240) Net chnnge in ti ~nd balances $ ~240) Fund balance at beginning ofyear FUND BALANCE AT END OF YEAR s $ 60 LISLE COMMUNin ' UNIT SCHOOL DISTRICT NO. 202 COMBINING S'l'ATE•\16)1,. OF ASSETS AND LIADII,11'1£S ARIS ING FROM CASII TRANSACTIONS BY ACCOUNT NONMA.IOR COVEilNMENTAL FUNDS J lJNF. 30,2012 Spocial Re\'enue Debt Scrvioe Mlmicipal Totn1 Retirement/ Nonmn.jor ToM!p011· $C)(:ia1 Oovcmmcntal acion S..:urity TOlA1 Debt Services funds ASSt:TS CP!Sh and investmetiiS s 1,373.143 $ 786,561 s 2.159,704 $ 1,745,236 s 3.904.940 TOTAL ASSETS s 1,373.1<13 s 786.561 $2,159,704 s 1,745,236 $ 3.904,940 LIAlliUTmS ANI) fUND llt\LANCE Liabiljtie$: Total Liabilities s s s s ~s~------Fund Balanee:: Restricted l.:t73.143 786,561 2,1.S9,704 1.745,236 3,904.9<10 Tottll Fund Balance 1,373, 143 786,561 2, 159,704 1,745,236 3 904.940 TOTAL Ll1\BILITIES ANI) l' lJND BALANCE .$ 1.373,143 $ 786,56 1 $ 2,159.704 $ 1.745,236 $ 3,904,9110 61 LISLE COMMUNITY UNIT SCHOOL DISTRICT NO. 202 COMBINING STATEMENT OF REVf;NUES RECEIVED, EXPENDITURES OISBlJRSED AND CHANGES IN FUND BALtiNCES BY ACCOUNT NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2·012 Seec.ial Revenue Debt Service Municipal Total Retirement/ Nomnajor Transport- Social Governmental at ion Security Total Debt Se Total Revenues Re<..'Cived 1,637,108 624,4~9 2,261,567 1,527,657 3,789,224 EXPENDITURES DISBURSED: ltl$ti'UCtiOil 252.402 252,402 252,402 Support services 1,436,233 387,841 1,824,074 1,824,074 Communily services 441 441 441 Debt service: Payment of principal on long~tenn debt 1,250,315 1,250,315 Interest on long-term debt 366,638 366,638 Service charges 9&2 982 Total Expenditures Disbursed 1,436,233 640,684 2.076,917 1,617,935 3,694.852 Excess (dellci¢nCy) of rev~l\ues received over expenditures disbursed 200,875 (16,225) 184.650 (90,278) 94,372 OTHER FINANCING SOURC.FA~ : Transfers in 23,0 14 23,014 140,560 163.574 Total other fimmc ing sour~cs 23,014 23,014 140,560 163 574 Net change in fund balances 223,889 (16,225) 207,664 50,282 257,946 Fund balance nt beginning. of year 1,149,254 802,786 1,952,040 1,694.954 3.646.99<1 FUND BALAN(:(; AT END Of Yf;.AR $ 1.373,143 s 786,561 $ 2. 159,70<1 $ 1,745,236 $ 3,904,940 62 LISLE COMMUNITY lJNlT SCHOOL DISTRICT NO. 202 SCHEDULE Of REVENUES RECEIVED, EXPENDITURES DISBURSED AND CHANGES IN FUND BALANCE BUDG £T AND ACTUAL TRANSPORTATION FUND YEAR ENDED JUN£ 30,2012 WITH COMPARATIVE ACTUAL TOTALS FOR 2011 2012 Final 20 1J Budget Actual Actual REVENUES RECEIVED: Local Sources: Property taxes $ 1,222,903 $ 1,011,927 $ 984,009 11·ansportation fees 23 ,131 23,789 23,333 Earnings on investments 4,050 5,603 9,238 Refund of prior years' expenditures 20,345 20,345 Total Local Sources 1,270,429 1,061 ,664 1,016,580 State Sources: TranspQ11ation aid Regulat 430,000 193,874 473,099 Special education 340,000 381,570 335,293 Total State Sources 770,000 575,444 808,392 Total Revenues Received 2,040,429 I,637, 108 I,824,972 EXPENDJTURES DISBURSED: Support Services: Business- Pupil Transpo11ation Services: Salal"ies 15,298 15,298 }4,707 Benefits 3,801 3,798 3,609 Purchased services 1,568,700 I,415,5 43 1,556,857 Supplies and materials 3,000 1,594 1,329 Non-capitalized equipment 5 000 Total Support Services 1,595,799 1,436,233 1,576,502 Total Expenditures Disbursed 1,595,799 1,436,233 1,576,502 Excess of revenues received over expenditures disbursed 444,630 200,875 248,470 OTHER FINANCING SOURCES: Transfers in 24,000 23,014 41,699 Total Qther 11nancing soUI"ces 24,000 23,014 41,699 Net change in fund balances $ 468,630 223,889 290, 169 Fund balance at beginning of ye-ar 1,1 49,254 859,085 FUND BALANCE AT END OF Y£AR $ 1,373,143 $ 1,149,254 63 LISLE COMMUNITY UNIT SCHOOL DISTRICT NO. 202 SCHEDULE OF REVENUES RECEIV£D, EXPENDITURES DISBURSED AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL MUNICIPAL RETIREMENT/SOCIAL SECURITY FUND YEAR ENDED JUNE 30,2012 WITH COMPARATIVE ACTUAL TOTALS FOR 2011 2012 final 20 11. Budget Actual Actual REVENUES RECEIVED: Local Sources: Property taxes General t«x levy $ 343,313 $ 296,728 $ 345,481 Social security/medicare tax levy 310,614 304,674 312,194 Corporate replacement taxes 23,000 20,009 18,765 Enrnings on investments 3,030 3,048 5,743 Total Local Sources 679,957 624,459 682,183 Total Revenues Received 679,957 624,459 682,183 EXPEN()IT URES DfSBURSED: Instruction· employee benefits 279,625 252,402 242,468 Support Services · employee benefits 412,625 387,841 350,822 Commlltli ty Services 441 355 Provision for comingencies 3,000 Total Expenditures Disbmsed 695,250 640,684 593,645 Excess (deficiency) of revenues received over expenditures disbursed ( 15,293) ( 16,225) 88.538 Net change in 1\md balances $ ( 15,293) (16,225) 88,538 Fund balance at beginning of year 802,786 714 248 FUND BALANCE AT END OF YEAR $ 786,561 $ 802,786 64 LISLE COM MUNITY UNIT SCHOOL DISTRICT NO. 202 SCHEDULE OF REVENUES RECEIVED, EXPENDITURES DISBURSED AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL DEBT SERVICES FUND YEAR ENDED JUNE 30,2012 WITH COMPARATIVE ACTUAL TOTALS FOR 2011 20 12 Final 2011 Budset Actual Actual REVENUES RECEIVED: Local SoUI-ces: Properly taxes $ 1,502,0 18 s 1,520,82 1 $ 1,543,766 Earnings on investments 7,050 6,836 9,522 Total Local Sources 1,509,068 I,527,657 1,553,288 T01al Revenues Received 1,509,068 1,527,657 1,553,288 EX PEN DITURES DISBURSED: Debt Service: Pnyment of principal on I0111!·term debt 1,255,000 1,250,315 1,134,740 Interest on long·term debt 369,000 366,638 480,429 Bond issuance cost 94,921 Service charges 1,1 00 982 800 ToUt I Debt Service 1,625,100 1.6 17,935 1,710 890 Totul Expenditures Disbursed 1,625,100 1,6 17,935 I 710,890 Deficiency of revenues received over expenditures disbursed ( 116,032) (90.278) ( 157,602) OTHER FINANCING SOURCES (USES): Principal on bonds sold 4,334,528 Premium on bonds sold 65,393 Trnnsfers in 147,000 140,560 190,032 Payment to refunded bond escrow agent (4,305,000) Total other fi nancing sources (uses} 147,000 140,560 284,953 Net chnnge in nond balances $ 30,968 50,282 127,35 1 Fund balance at beginning of year 1,694,954 1,567,603 PUND BALANCE AT END OF YEA R $ 1,745,236 $ 1,694,954 65 LISLE COMM UNITY UNIT SCHOOL DISTRICT NO. 202 SCHEDULE OF CHANGES IN CASH BALANCES ACTIVITY FUNDS YEAR ENDED JUNE 30,2012 Cash Cash Balance Balance July I, Cash Cnsh June 30, 20 11 Receipts Disbursements 20 12 Schicshcr School s 8,117 $ 12,948 s 13,043 $ 8,022 Tale Woods School 4,222 8,904 8,973 4,153 Lisle Junior High 12,889 51,364 51 ,094 13,159 Lisle High School 118,444 412,966 437,467 93,943 TOTAL ACTIVITY FUNDS s 143,672 $ 486,182 $ 510,577 s 119,277 66 OTHER FINANCIAL INFORMATION LISLE COMMUNITY UNIT SCHOOL DISTRICT NO. 202 SCHEDULE OF ASSESSED VALUATIONS, TAX EXTENS IONS AND COLLECTIONS YEARS ENDED JUN E 30, 2012,2011 AND2010 TAX LEVY YEAR 2011 2010 2009 ASSESSED Vt \ J..UATION $ 593,856,259 $629,018,949 $ 66 7,358,3 84 TAX EXTENSlONS BY LEVY : Educational $ 19,840,738 $ 18,956,744 $ 18,900,256 Operations and mainLenance 3,257,302 3, 192,271 3,069,848 Debt services 1,514,927 1,515,936 I,517.573 Transportatil)n 789,829 1,223,442 725,419 Municipal retirement 247,044 343,444 335,681 WOI"king cash 1,188 1,258 1,335 Social security 296,334 310,735 302,98 1 Ton immun ity 1,1 88 1,258 1,335 Special education 138,962 137,755 132,137 TOT1~ L $ 26,087,51 2 $ 25,682,843 $ 24,986,565 TAX COLLECTIONS: Year Ended June 30: 2010 $ II ,853,968 2011 $ 12,670, 144 13,100,483 201 2 $ 12,97 1,470 12,990,6il7 12,793 TOTAl- $ 12,971,470 $ 25,660,79 J $ 24,967,244 Percent ofTotal l-evy Collected To June 30, 2012 49.72% 99.91 % 99.92% 67 LISLE COMMUNITY UNIT SCHOOL DISTRICT NO. 2(12 SCHEDULE OF BONDED DEBT MATURITIES AND INTEREST JUNE 30, 2012 Refunding Bonds School Bonds 2005 20 10 Due Year Ended June 30. Principal Interest Principal Interest Total 2013 $ 615,000 $ 227,100 $ 540,000 $ 99,625 :s 1,481 ,725 2014 645,000 20 1,900 545,000 88,775 1,480,675 2015 685,000 175,300 540,000 77,925 1,478,225 2016 725,000 147,100 540,000 65,715 1,477,875 20 17 770,000 117,200 545,000 52,213 1,484,4 13 2018 810,000 85,600 545,000 38,587 I,479, 187 20 19 850,000 52,400 550,000 24,213 1,476,613 2020 885,000 17,700 555,000 8,325 1,466,025 Total $ 5,985,000 $ 1,024,300 $ 4,360,000 $ 455,438 $ II ,824, 738 68 LISLE COMMUNITY UNIT SCHOOL DISTRICT NO. 202 SCHEDULE OF PER CAPITA T UITION CHARGE AND AVERAGE DAILY ATTENDANCE June 30,2012 Year Ended June 30, 2012 2011 2010 Allowable Expenses $20,794,035 $20,57 1,691 $21,021,543 Average Daily Attendance 1,414.10 1,416.48 1,374. 17 Per Capita Tuition Charge $ 14,705 $ (4,523 s 15,298 69 LISLE COi\'IMUNITY UNIT SCHOOL DISTRICT NO. 202 Schedule of Funding Progress June 30,2012 Jllinois Municipal Retirement Fund: Actuarial UAALas a Actuarial Accrued Unfunded Pcrccntuge Actuarial Value of Liability (AAL) AAL Funded Covered of Covered Valuation Assets -Entry Age (UAAL) Ratio Payroll Payroll Date (a) (b) (b-a) (a/b) (c) [(b-a)/c[ 12131/11 $2,393,746 $5,112,30$ $2,7 18,559 46.82% $2,522,253 107.78% 12/3 1/10 2,350,911 4,887,844 2,536,933 48.10 2,421 ,449 104.77 12131 109 2,978, 123 4,978,142 2,000,019 59.82 2,498,326 80.05 12131108 4,138,298 5,648,242 1,509,944 73.27 2.372,951 63.63 12131107 4,844,432 5,160,813 316,381 93.87 2.294,529 13.79 12/3 1/06 4, 11 9,925 4,638,250 518,325 88.82 2,177,567 23.80 12/31/05 3,669,5 13 4,270,625 60 1, 112 85.92 2,027,457 29.65 12131/04 3,435,427 3,91 4,832 479,405 87.75 1,884,501 25.44 On a market value basis, the actuarial value of assets as of December 31, 2011 is $2,151,618. On a market basis, the funded ratio would be 42.09%. Defined Postemployment Benefit Plan: Actuarial UAAL ns a Actuarial Accrued Unfunded Percentage Actuarial Value of Liability (AAL) AAL Funded Covered of Covered Valuation Assets Entry Age (UAAL) Ratio PayroU Payroll Date (a) (b) (b-a) (a/b) (c) l(b-a)lc) 6/30/11 s- $2 111 ,640 $2 111 ,640 OOA. Sl I 199,955 17.9% 6/30109 - 1912,091 I 912,091 0 11 ,640,006 16.4 70