COMPREHENSIVE ANNUAL FINANCIAL REPORT OF COMMUNITY UNIT SCHOOL DISTRICT 308 OSWEGO, ILLINOIS As of and for the Year Ended June 30, 2015 Officials Issuing Report Ali Mehanti, Assistant Superintendent for Business Services and Operations Jeffrey Ryder, Director of Finance Department Issuing Report Business Office COMMUNITY UNIT SCHOOL DISTRICT 308 TABLE OF CONTENTS AS OF AND FOR THE YEAR ENDED JUNE 30, 2015 Page(s) Introductory Section Transmittal Letter i - viii ASBO Certificate ix GFOA Certificate x Organizational Chart xi Principal Officers and Advisors xii Financial Section Independent Auditors' Report 1 - 3 Required Supplementary Information Management's Discussion and Analysis (MD&A) - Unaudited 4 - 10 Basic Financial Statements Government-Wide Financial Statements Statement of Net Position 11 Statement of Activities 12 Fund Financial Statements Balance Sheet - Governmental Funds 13 - 14 Reconciliation of the Governmental Funds - Balance Sheet to the Statement of Net Position 15 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 16 - 17 Reconciliation of the Governmental Funds - Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities 18 Statement of Fiduciary Assets and Liabilities - Agency Fund 19 Notes to Basic Financial Statements 20 - 48 Required Supplementary Information Illinois Municipal Retirement Fund - Schedule of Changes in the District's Net Pension Liability and Related Ratios 49 Illinois Municipal Retirement Fund - Schedule of District Contributions 50 Teachers' Retirement System - Schedule of the District's Proportionate Share of the Collective Net Pension Liability and Schedule of District Contributions 51 Schedule of Funding Progress For Retirees' Health Plan 52 COMMUNITY UNIT SCHOOL DISTRICT 308 TABLE OF CONTENTS AS OF AND FOR THE YEAR ENDED JUNE 30, 2015 Page(s) Required Supplementary Information - (Continued) General and Major Special Revenue Funds - Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget to Actual General Fund 53 - 62 Operations and Maintenance Fund 63 - 64 Transportation Fund 65 - 66 Municipal Retirement/Social Security Fund 67 - 68 Notes to Required Supplementary Information 69 Supplementary Information Major Debt Service and Major Capital Projects Funds - Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget to Actual Debt Service Fund 70 - 71 Capital Projects Fund 72 Fire Prevention and Life Safety Fund 73 General Fund - Combining Balance Sheet 74 General Fund - Combining Schedule of Revenues, Expenditures and Changes in Fund Balances 75 General Fund Accounts - Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget to Actual Educational Accounts 76 - 85 Working Cash Accounts 86 Schedule of Changes in Fiduciary Assets and Liabilities - Agency Funds - Student Activity Fund 87 Schedule of Changes in Fiduciary Assets and Liabilities - Agency Funds - Flex Spending Fund 88 Schedule of Changes in Fiduciary Assets and Liabilities - Agency Funds - Southwest Prairie Conference Fund 89 General Long-Term Debt - Capital Appreciation Bonds, Series 2003C 90 General Long-Term Debt - Capital Appreciation Bonds, Series 2005 91 General Long-Term Debt - General Obligation School Refunding Bonds, Series 2005A 92 General Long-Term Debt - General Obligation School Bonds, Series 2007 93 General Long-Term Debt - General Obligation School Refunding Bonds, Series 2007A 94 General Long-Term Debt - Capital Appreciation Bonds, Series 2008 95 General Long-Term Debt - General Obligation Refunding Bonds, Series 2009 96 General Long-Term Debt - General Obligation Refunding Bonds, Series 2011 97 COMMUNITY UNIT SCHOOL DISTRICT 308 TABLE OF CONTENTS AS OF AND FOR THE YEAR ENDED JUNE 30, 2015 Page(s) Supplementary Schedules - (Continued) General Long-Term Debt - General Obligation Unlimited Tax School Bonds, Series 2011A 98 General Long-Term Debt - General Obligation School Refunding Bonds (Alternative Revenue Source), Series 2011B 99 General Long-Term Debt - General Obligation School Refunding Bonds, Series 2012 100 General Long-Term Debt - General Obligation School Refunding Bonds, Series 2013 101 General Long-Term Debt - General Obligation School Refunding Bonds, Series 2014 102 General Long-Term Debt - General Obligation Refunding School Bonds, Series 2015 103 Statistical Section Net Position by Component 104 - 105 Expenses, Program Revenues, and Net (Expense) Revenue 106 - 107 General Revenues and Total Change in Net Position 108 - 109 Fund Balances, Governmental Funds 110 - 111 Governmental Funds Revenues 112 - 113 Governmental Funds Expenditures and Debt Service Ratio 114 - 115 Other Financing Sources and Uses and Net Changes in Fund Balances - Governmental Funds 116 - 117 Assessed Value and Actual Value of Taxable Property 118 - 119 Direct and Overlapping Property Tax Rates 120 - 121 Principal Property Tax Payers 122 Property Tax Levies and Collections 123 Outstanding Debt by Type 124 - 125 Computation of Direct and Overlapping Governmental Activities Debt 126 Legal Debt Margin Information 127 - 128 Principal Employers 129 Demographic and Economic Statistics 130 Full-Time Equivalent District Employees by Type 131 Operating Statistics 132 Capital Asset Information 133 - 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OI~TqiCT November 5, 2015 President, Members of the Board of Education, And Community Residents of Community Unit School District No. 308 Oswego, Illinois The Comprehensive Annual Financial Report (CAFR) of Community Unit School District No. 308 (the District), Oswego, Illinois, as of and for the year ended June 30, 2015, is submitted herewith. Responsibility for the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the District. We believe the data, as presented, is accurate in all material aspects; that is presented in a manner designed to fairly set forth the financial position and results of operations of the District as shown by the disclosure of all financial activity of its various funds; and that all disclosures necessary for public understanding of the District's financial status have been incorporated within this report. Management's discussion and analysis (MD&A) immediately follows the independent auditors' report and provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A complements this letter and should be read in conjunction with it. Financial Statements The CAFR includes all the funds of District and is presented in three sections: Introductory, Financial, and Statistical. The introductory section includes this transmittal letter, the District's organization chart, and a list of principal officers and elected officials. The financial section includes the independent auditors' report on financial statements and schedules, Management's Discussion and Analysis (MD&A), basic financial statements and required and other supplemental information such as the combining and individual fund financial statements and schedules. The statistical section includes selected financial and demographic information, generally presented on a multi-year basis. The District is required to undergo an annual single audit in conformity with the provisions of the U.S. Office of Management and Budget's (OMB) Circular A-133, MAudits of States, Local Governments, and Non-profit Organizationsn. Information related to this single audit, including a schedule of federal financial assistance and the independent auditors' reports on the internal control structure and on compliance with applicable laws and regulations, is included under separate cover. OIS TR JCr ~DMI1USIRATIVE CENTER • 41/5 ROUTE 71 • OSWEGO 1~ 60543 • P (6301 636 ·3080 • F !&30) 636 3688 • YIWW SD308 ORG The financial reporting entity of the District is to include the District, as the primary government, organizations for which the District is financially accountable, and other organizations for which the nature and significance of their relationship with the District are such that exclusion would cause the District's financial statements to be misleading or incomplete. Based on these criteria there are no other organizations or agencies whose financial statements should be combined with the general purpose financial statements of the District. History of the District The District began as a single school building in 1837. Over the next 100 years the residents were served by a separate elementary and high school district. Then in 1961 the voters approved consolidating into a single unit district creating Oswego CUSD No. 308 as it stands today. The District is made up of 68.6 square miles in Kendall, Will and Kane Counties, Illinois and currently serves approximately 18,043 students from Oswego, Montgomery, Aurora, Plainfield, Joliet and unincorporated portions of Kendall and Will Counties in Illinois. Accounting Systems and Budqetarv Control The District administration is responsible for establishing and maintaining internal controls designed to ensure that the assets of the District are protected from loss, theft, or misuse and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with Generally Accepted Accounting Principles. The internal controls are designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits