COMMUNITY CONSOLIDATED SCHOOL DISTRICT 15

COMMUNITY CONSOLIDATED SCHOOL DISTRICT 15

FINANCIAL STATEMENTS

AS OF AND FOR THE YEAR ENDED

JUNE 30, 2012 AND

INDEPENDENT AUDITOR'S REPORT

THIS PAGE IS INTENTIONALLY LEFT BLANK

COMMUNITY CONSOLIDATED SCHOOL DISTRICT 15 TABLE OF CONTENTS

AS OF AND FOR THE YEAR ENDED JUNE 30, 2012

Independent Auditor's Report

Required Supplementary Information

Management's Discussion and Analysis (MD&A) - Unaudited

Basic Financial Statements

Government-Wide Financial Statements

Statement of Net Assets

Statement' of Activities

Fund Financial Statements

Balance Sheet - Governmental Funds

Reconciliation of the Governmental Funds -Balance Sheet to the Statement of Net Assets

Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds

Reconciliation of the Governmental Funds - Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities

Statement of Fiduciary Assets and Liabilities - Agency Fund

Notes to Basic Financial Statements

Required Supplementary Information

Illinois Municipal Retirement Fund -Schedule of Employer's Contributions and Analysis of Funding Progress

Schedule of Funding Progress For Retiree's Health Plan

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COMMUNITY CONSOLIDATED SCHOOL DISTRICT 15 TABLE OF CONTENTS


Required Supplementary Information - (Continued)

General and Major pecial Revenue Funds - Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget to Actual

General Fund

Operations and Maintenance Fund

Transportation Fund

Municipal Retirement/Social Security Fund

Notes to Required Supplementary Information

Supplementary Information

Major Debt Service and Major Capital Projects und ' - 'chedule of Revenues. Expenditures and Changes in Fund Balances - Budget to Actual

Debt Service Fund

Capital Projects Fund

Fire Prevention and Life Safety Fund

General Fund - Combining Balance Sheet

General Fund - Combining Schedule of Revenues, Expenditures and Changes in Fund Balances

General Fund Accounts - Schedule of R v nues, Expenditures and Changes in Fund Balances - Budget to Actual

Educational Accounts

TOlt Immunity and Judgment Accounts

Working Cash Accounts

Schedule of Changes in Assets and Liabilities - Agency Funds

Schedule of General Long-Term Debt - General Obligation Bonds Payable

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INDEPENDENT AUDITOR'S REPORT

To the Board of Education Community Consolidated School District 15

580 N. First Bank Drive Palatine, Illinois 60067

~ BAKER TILLY

Baker Tilly Virchow Krause. LLP 1301 W22ndSt.Ste400 Oak Brook. IL 60523-3389 tel 630 990 3131 fax 630 990 0039 bakertilly.com

We have audited the accompanying financial statements of the governmental activities, each major fund, and the remaining fund information of Community Consolidated School District 15, as of and for the year ended June 30, 2012, which collectively comprise Community Consolidated School District 15's basic financial statements as listed in the table of contents. These financial statements are the responsibility of Community Consolidated School District 15's management. Our responsibility is to express opinions on these financial statements based on our audit. The prior year summarized comparative information included in the Governmental Funds Balance Sheet and the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances has been derived from Community Consolidated School District 15's 2011 financial statements. In our report dated October 27, 2011, we expressed unqualified opinions on the respective financial statements of the governmental activities, each major fund, and the remaining fund information.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions.

In our opinion, the financial statements referred to previously present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the remaining fund information of Community Consolidated School District 15 as of June 30, 2012, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated October 3, 2012 on our consideration of Community Consolidated School District 15'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 assessing the results of our audit. .

~anlndependent memb erOI BAKER TILLY INTERNATIONAL - 1 -

Board of Education Community Consolidated School District 15

Accounting principles generally accepted in the United States of America require that the Required Supplementary Information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational , economical, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise Community Consolidated School District 15's basic financial statements. The financial information listed as supplementary information in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements . The 2012 supplementary information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves , and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the 2012, supplementary information is fairly stated in all material respects in relation to the basic financial statements for the year ended June 30, 2012, as a whole. We also have previously audited, in accordance with auditing standards generally accepted in the United States of America, Community Consolidated School District 15's basic financial statements for the year ended June 30, 2011, which are not presented with the accompanying financial statements. In our report dated October 27, 2011, we expressed an opinion that the 2011 supplementary information is fairly stated in all material respects in relation to the basic financial statements for the year ended June 30, 2011, as a whole.

Oak Brook, Illinois October 3, 2012

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Community Consolidated School District 15 Management's Discussion and Analysis (Unaudited) As of and for the Year Ended June 30, 2012

The discussion and analysis of Community Consolidated School District 15's (the "District") financial perfonnance provides an overall review of the District's financial activities for the year ended June 30, 2012. The management of the District encourages readers to consider the infonnation presented herein in conjunction with the basic financial statements to enhance their understanding of the District's fmancial perfonnance. All amounts, unless otherwise indicated, are expressed in millions of dollars. Certain comparative infonnation between the current year and the prior is required to be presented in the Management's Discussion and Analysis (the "MD&A").

Financial Highlights

> In total, net assets increased by $0.6. This represents a 0.9% increase from 2012.

> General revenues accounted for $119.5 in revenue or 73% of all revenues. Program specific revenues in the form of charges for services and fees and grants accounted for $44.3 or 27% of total revenues of$163.8.

> The District had $163.2 in expenses related to government activities. However, only $44.3 of these expenses were offset by program specific charges and grants.

> The District purchased 5 new buses for replacement for the 2011 12 school year for a total cost of $0.4.

> The District continued to pay down its long-term debt retiring $4.5 in fiscal 2012.

> The 2011-12 Budget was amended on June 13,2012.

Overview of the Financial Statements

This discussion and analysis are intended to serve as an introduction to the District's basic financial statements. The basic financial statements are comprised of three components:

> Government-wide financial statements,

> Fund financial statements, and

> Notes to basic financial statements.

This report also contains other supplementary infonnation in addition to the basic financial statements.

Government-wide financial statements

The government-wide financial statements are designed to provide readers with a broad overview of the District's finances, in a manner similar to a private-sector business.

The statement of net assets presents infonnation on all of the District's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the District is improving or deteriorating.

The statement of activities presents information showing how the government's net assets changed during the fiscal year being reported. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods.

The government-wide financial statements present the functions of the District that are principally supported by taxes and intergovernmental revenues (governmental activities). The District has no business-type activities; that is, functions that are intended to recover all or a significant portion of their costs through user fees and charges. The District's governmental activities include instructional services (regular education, special education and other), supporting services, operation and maintenance of facilities and transportation services.

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Fund financial statements

A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The District uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the District can be divided into two categories: governmental funds and fiduciary funds (the District maintains no proprietary funds).

Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a school district's near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The District maintains seven individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balances for the General Fund, Operations and Maintenance Fund, Transportation Fund, Municipal Retirement/Social Security Fund, Debt Service Fund, Capital Projects Fund, and Fire Prevention and Life Safety Fund, all of which are considered to be major funds.

The District adopts an annual budget for each of the funds listed above. A budgetary comparison schedule has been provided for each fund to demonstrate compliance with this budget.

Fiduciary funds are used to account for resources held for the benefit of parties outside the School District. Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the District's own programs. The accounting used for fiduciary funds is much like that for the government-wide financial statements.

Notes to basic financial statements

The notes to the financial statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.

Other information

In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the District's progress in funding its obligation to provide pension benefits to its non-certified employees.

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District-Wide Financial Analysis

The District's combined net assets were higher on June 30,2012, than they were the year before, increasing 1 % to $69.7.

Table 1 (Jolldell8ed Statem en Is of Nel-A5seis (ill milliolls.of dollars)

2011 2012

Assets: Current and other assets $ 125.8 $ 130.9 Deferred charges 0.1 0.1 Capital assets 60.0 59.3

Total assets 185.9 190.3

Liabilities: Current liabilities 65.3 70.6 Long-tenn debt outstanding 51.5 50.0

Total liabilities 116.8 120.6

Net assets: Invested in capital assets, net of related debt 36.5 37.7 Restricted 22.0 20.8 Unrestricted 10.6 11.2

Total net assets ~ 69.1 ~ 69.7

Revenues in the governmental activities of the District of$163.8 exceeded expenses by $0.6.

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Table 2 Changes in Net Assets (in millions of dollars)

Revenues: Program revenues: Charges for services Operating grants & contributions General revenues: Taxes General state aid Other

Total revenues

Expenses: Instruction Pupil & instructional staff services Administration & business Transportation Operations & maintenance Other

Total expenses

Excess (deficiency) of revenues over expenses before special items

Increase (decrease) in net assets

2011

$

~

2012

4.3 $ 3.5 38.0 40.8

109.1 110.6 7.0 7.3 l.6 1.6

160.0 163.8

98.7 101.7 15.4 15.8 18.7 18.6 11.7 10.5 12.5 12.3 4.8 4.3

161.8 163.2

(1.8) 0.6

(1.8) ~ 0.6

Taxes accounted for the largest portion of the District's revenues, contributing 68%. The remainder of revenues came from state, federal grants and other sources. The total cost of all the District's programs was $163.2, mainly related to instructing and caring for the students and student transportation.

The instructional programs of the District account for $101. 7 of all expenses. This does not include an additional $15.8 of instructional support.

Direct services to students not including operations and maintenance total 78% of the District's expenses.

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District-Wide Revenues by Source

1% Other Charges for services 2% 4% General state aid

Operating grants & contributions 25%

District-Wide Expenses by Function

11% Operations & maintenance and other

11% Administration & business

Instruction 62% 10% Pupil & instructional staff services

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Financial Analysis of the District's Funds

The District's Governmental Funds balance decreased from $60.33 to $60.32.

> The General Fund balance increased to $39.5, with the Educational accounts increasing by $1.2 and the Tort accounts increasing by $0.05.

> The Operations and Maintenance Fund balance decreased by $0.34, which includes a $0.3 transfer to the Capital Projects Fund.

> The Debt Service Fund balance decreased by $0.5, as the District abated a portion of the Debt Service levy in the prior levy year.

> The Transportation Fund balance increased by $0.5. The increase in fund balance can be attributed to an excess of revenues over expenditures.

> The Illinois Municipal Retirement and Social Security Fund balance decreased by $0.2.

> The Capital Projects Fund balance decreased by $0.7 due to planned projects at the District's schools. The Fire Prevention & Life Safety Fund balance remained steady.

> The combined fund balances, excluding Debt Service, increased by $0.5 from the prior year.

General Fund Budgetary Highlights

The state of Illinois makes payments to TRS (and THIS) on behalf of the district. The payment is included under state aid revenue with an offsetting expenditure in the Educational Accounts. The variance of approximately $0.8 is due to an increase in contribution rates as described in Notes 9 and 10. After excluding the on behalf line items, revenues were under budget by $0.5, however, expenditures were under budget by $3.9. Several factors are attributed to the favorable revenue variance. The positive expenditure variance of$3.9 is due mainly to the budget, department, and grant managers not expending all of their appropriated budgets. The Technology Department was under budget by approximately $0.95 due mainly to the delay in purchasing major software upgrades. $0.5 of this variance has been carried over into the fiscal year 2013 appropriation. Amongst other categories, tuition for special education students attending programs outside of the district were under budget by $0.14; Dept. of Instruction was under budget by $0.34; the Business Office was under budget by $0.31; and legal services were under budget by $0.11. Health costs were under budget by over $0.54 due to lower than expected claims in the districts self insured health pool. There was also a positive variance of $0.26 in the tort accounts due lower than anticipated worker compensation costs.

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Capital Assets and Debt Administration Capital assets

By the end of 2012, the District had compiled a total investment of $133.4 ($59.3 net of accumulated depreciation) in a broad range of capital assets including buildings, land and equipment. Total depreciation expense for the year was $3.4. More detailed information about capital assets can be found in Note 5 of the basic financial statements.

Table 3 Capital Assets (net of depreciation) (in millions of dollars)

2011 2012

Land $ 7.8 $ Construction in progress 0.1 Buildings 43.6 Site improvements 0.5 Equipment 3.1 Vehicles 4.8 Food service equipment 0.1

Total ~ 60.0 ~

Long-term debt

7.8 0.6

43.3 0.4 2.6 4.5 0.1

59.3

The District retired $4.5 in bonds and accreted $1.7 in bonds in 2012. At the end of fiscal 2012, the District had a debt margin of $240.7. More detailed information on long-term debt can be found in Note 7 of the basic financial statements.

Table 4 Outstanding Long-Term Debt (in millions of dollar~

2011 2012

General Obligation Bonds $ 43.7 $ Other 7.8

Total ~ 51.5 ~

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 significantly affect financial operations in the future:

40.9 9.1

50.0

Revenues from local property taxes account for 66.5% of total revenue. As taxpayers continue to be negatively impacted by the economy, the District can expect to continue to see tax collection rates less than 100%. Although the District experienced a tax collection rate of over 98% for this fiscal year, many factors such as when the county sends out tax bills, changes in property values and home foreclosures will continue to affect future tax collection rates. District expects future tax collections to be more consistent with its historical collection average of between 96% and 99%.

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In addition, the district continues to refund property tax collections for previous years due to tax rate objections, Property Tax Appeal Board (PTAB) decisions, or Circuit Court decisions. The District paid out $1.8 in fiscal year 2012 for property tax refunds. For comparison purposes, the District paid out $4.9 in fiscal year 2011; $5.1 in fiscal year 2010 and $3.5 in fiscal year 2009.

The Property Tax Extension Limitation Act (PTELA) continues to limit the growth of tax revenue, the major source of revenue for the district. The 2011 levy, which will be collected during 2012 13 fiscal year was based on a 1.5% Consumer Price Index (CPI) for 2010. The 2012 levy which will be used fund operations in the 2013-14 fiscal year will be based on the 2011 CPI of 3.0%.

State funding in the General Fund is approximately 10.0%. Budget deficiencies for the state of Illinois continue to be a concern for future time periods as program funding levels and timely payments from the state are in question.

The Board of Education has committed to spend $3.0 annually on capital improvement projects. The board approved $2.16 to be completed during the summer of 20 12. The proj ects include $1.0 for roof replacements at Winston Campus, Lake Louise, & Willow Bend and $.7 for multiple paving projects. The remainder of the projects will approved at a future date for an estimated spring/summer 2013 construction timeline. The Board will continue to consider appropriate facility improvement projects as specified in the district's Facility Audit.

The District's most recent demographics study which was completed in July 2008 indicated decreasing enrollment for the 2011 and 2012 fiscal years. The District's actual enrollment has increased by 81 and 256 students, respectively, over these last two years with enrollment for this fall increasing by over 100 students. Increased student enrollment and the accompanying costs associated with educating a larger student body have the potential to negatively affect the future financial position of the District.

The District's settled a new collective bargaining agreement with the Classroom Teachers' Council CTC) that will expire August 31, 2016. The District also settled a successor agreement with the Service Employees International Union (SEIU) that will expire June 30, 2017. The new agreements will help the District to remain in a strong financial position. Although the district is forecasting small deficits for the next couple of years, it expects the deficits to be eliminated prior to the end of the contract expiration dates. Successful settlement of the District Transportation Union (DTU) and Educational Support Personnel Association (ESP A) contracts, which both expire June 30, 2013, will be necessary to help the District maintain its current strong financial position.

The administration in collaboration with the Board of Education will continue to review, study, and analyze all financial operations while maintaining high quality educational programs.

Requests for Information

This financial report is designed to provide the District's citizens, taxpayers, and creditors with a general overview of the District's finances and to demonstrate the District's accountability for the money it receives. If you have questions about this report, or need additional financial information, contact the Business Office:

Michael Adamczyk Community Consolidated School District 15 580 N. First Bank Drive Palatine, Illinois 60067

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COMMUNITY CONSOLIDATED SCHOOL DISTRICT 15 STATEMENT OF NET ASSETS

Assets

Cash and investments Receivables (net of allowance for uncollectibles):

Property taxes Replacement taxes Intergovernmental Tuition

Prepaid expenses Other assets Deferred charges Capital assets:

Land Construction in progress

AS OF JUNE 30, 2012

Depreciable buildings, property and equipment, net

Total assets

Liabilities

Accounts payable Accrual - salaries and benefits Payroll deductions payable Interest payable Unearned revenue Long-term liabilities:

Other long-term liabilities - due within one year Other long-term liabilities - due after one year

Total liabilities

Net assets

Invested in capital assets, net of related debt Restricted for:

Operations and maintenance Student transportation Retirement benefits Debt service Capital projects

Unrestricted

Total net assets

See Notes to Basic Financial Statements

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GOVERNMENTAL ACTIVITIES

$ 65,894,604

55,280,455 288,723

7,594,681 292,989 504,632

1,090,477 84,317

7,827,932 620,870

50,823,949

190,303,629

3,425,088 11,782,561

158,809 32,571

55,178,869

6,828,724 43,153,125

120,559,747

37,707,721

6,447,448 6,817,927 2,628,740 4,785,862

102,302 11,253,882

$ 69,743,882

COMMUNITY CONSOLIDATED SCHOOL DISTRICT 15 STATEMENT OF ACTIVITIES

FOR THE YEAR ENDED JUNE 30, 2012

NET (EXPENSES) REVENUE AND

CHANGES IN NET PROGRAM REVENUE ASSETS

FUNCTIONS/PROGRAMS

Governmental activities

Instruction: Regular programs Special programs Other instructional programs State retirement contributions

Support Services: Pupils Instructional staff General administration School administration Business Transportation Operations and maintenance Central Other supporting services

Community services Payments to other districts and gov't units -

excluding special education Interest and fees

Total governmental activities

OPERATING CHARGES FOR GRANTS AND GOVERNMENTAL

EXPENSES SERVICES CONTRIBUTIONS ACTIVITIES

$ 54,463,381 $ 1,202,193 $ 1,230,471 $ (52,030,717) 17,443,063 253,540 11,908,692 (5,280,831 ) 11 ,086,387 117,511 1,198,221 (9,770,655) 18,684,485 18,684,485

9,449,756 3,610 (9,446,146) 6,374,582 234,748 (6,139,834 ) 6,709,207 (6,709,207) 6,768,397 (6,768,397) 5,134,944 1,651 ,765 2,214,984 (1 ,268,195)

10,523,342 205,676 5,287,933 (5,029,733) 12,255,159 107,695 (12,147,464)

1,245,019 (1 ,245,019) 244,660 (244,660) 428,905 (428,905)

270,863 (270,863) 2,129,995 (2,129,995)

~ 163,212,145 ~ 3,538,380 ~ 40,7631144 (118,910,621)

General revenues: Taxes:

Real estate taxes, levied for general purposes 84,766,712 Real estate taxes, levied for specific purposes 19,851 ,092 Real estate taxes, levied for debt service 4,375,814 Personal property replacement taxes 1,582,972

State aid-formula grants 7,342,173 Investment income 117,991 Miscellaneous 1,513,030

Total general revenues 119,549,784

Change in net assets 639,1 63

Net assets, beginning of year 69,104,719

Net assets, end of year $ 69,743,882


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COMMUNITY CONSOLIDATED SCHOOL DISTRICT 15 GOVERNMENTAL FUNDS

BALANCE SHEET AS OF JUNE 30, 2012

WITH COMPARATIVE TOTALS AS OF JUNE 30, 2011 OPERATIONS AND MUNICIPAL

MAINTENANCE TRANSPORTATION RETIREMENT/SOCIAL

GENERAL FUND FUND FUND SECURITY FUND

Assets

Cash and investments $ 46,275,856 $ 6,727,476 $ 4,762,144 $ 2,771,996 Receivables (net allowance for uncollectibles):

Property taxes 43,368,994 5,115,384 1,844,770 2,468,458 Replacement taxes 288,723 I ntergovern mental 5,379,244 123,361 2,092,076 Tuition 284,148 8,841

Prepaid expenses 450,592 54,040 Other assets 1,090,477

Total assets ~ 96,849,311 ~ 12,308,984 ~ 8,707,831 ~ 5,240,454

Liabilities and fund balance

Accounts payable $ 2,180,103 $ 755,552 $ 48,472 $ Salaries and wages payable 11,782,561 Payroll deductions payable 10,965 52 147,792 Deferred revenue 43,369,508 5,105,984 1,845,726 2,463,922

Total liabilities 57,343,137 5,861 ,536 1,894,250 2,611,714

Fund balance

Nonspendable 450,592 54,040 Restricted 278,471 6,393,408 6,813,581 2,628,740 Assigned 4,211,671 Unassigned 34,565,440

Total fund balance 39,506,174 6,447,448 6,813,581 2,628,740

Total liabilities and fund balance ~ 96,849,311 ~ 12,3081984 ~ 8,707,831 ~ 5,240,454


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FIRE PREVENTION DEBT SERVICE CAPITAL AND LIFE SAFETY TOTAL

FUND PROJECTS FUND FUND 2012 2011

$ 4,813,869 $ 524,689 $ 18,574 $ 65,894,604 $ 62,376,791

2,482,849 55,280,455 53,157,407 288,723 211,799

7,594,681 7,843,611 292,989 487,967 504,632 622,613

1,090,477 1.039.199

$ 7.296,718 $ 524,689 $ 18,574 $ 130,946,561 $ 125.739,387

$ $ 440,961 $ $ 3,425,088 $ 2,814,187 11,782,561 11,263,658

158,809 151,653 2.478,285 55,263,425 51,179,046

2.478,285 440,961 70,629,883 65.408.544

504,632 622,613 4,818,433 18,574 20,951,207 22,200,736

83,728 4,295,399 2,546,757 34,565,440 34.960,737

4,818,433 83,728 18,574 60,316,678 60,330,843

~ 7,296,718 ~ 524,689 ~ 18,574 ~ 130,946,561 ~ 1251739,387

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COMMUNITY CONSOLIDATED SCHOOL DISTRICT 15 RECONCILIATION OF THE GOVERNMENTAL FUNDS

BALANCE SHEET TO THE STATEMENT OF NET ASSETS AS OF JUNE 30, 2012

Total fund balances - governmental funds

Amounts reported for governmental activities in the Statement of Net Assets are different because:

Net capital assets used in governmental activities and included in the Statement of Net Assets do not require the expenditure of financial resources and, therefore, are not reported in the governmental funds balance sheet.

Certain revenues receivable by the District and recognized in the Statement of Net Assets do not provide current financial resources and are deferred in the governmental funds balance sheet, as follows:

Tuition revenue

Long-term liabilities included in the Statement of Net Assets are not due and payable in the current period and, therefore, are not reported in the governmental funds balance sheet.

Deferred charges included in the Statement of Net Assets are not available to pay for current period expenditures and, therefore, are not included in the governmental funds balance sheet.

Interest on long-term liabilities accrued in the Statement of Net Assets will not be paid with current financial resources and, therefore, is not recognized in the governmental funds balance sheet.

Net assets of governmental activities


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$ 60,316,678

59,272,751

84,556

(49,981,849)

84,317

(32,571 )

$ 69,743,882

COMMUNITY CONSOLIDATED SCHOOL DISTRICT 15 GOVERNMENTAL FUNDS

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2012

WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2011 OPERATIONS AND MUNICIPAL

MAINTENANCE TRANSPORTATION RETIREMENT/SOCIAL

GENERAL FUND FUND FUND SECURITY FUND

Revenues Property taxes $ 85,936,351 $ 10,134,536 $ 3,654,966 $ 4,891,951 Corporate personal property

replacement taxes 691,390 786,582 105,000 State aid 31,905,195 123,361 5,287,933 Federal aid 10,771,738 17,090 Investment income 62,484 8,548 9,854 4,045 Other 3,302,137 307.345 226,933

Total revenues 132.669.295 11,377,462 9,179,686 5,000,996

Expenditures Current:

Instruction: Regular programs 52,087,169 1,013,675 Special programs 16,689,404 676,241 Other instructional programs 10,776,358 282,725 State retirement contributions 18,684,485

Support Services: Pupils 9,101,793 326,295 Instructional staff 6,199,303 160,571 General administration 4,544,876 144,724 School administration 6,362,162 274,800· Business 4,625,515 317,003 Transportation 26,870 8,166,828 898,047 Operations and maintenance 11,169,081 949,362 Central 1,100,784 141,935 Other supporting services 244,660

Community services 402,550 26,063 Payments to other districts and gov't units 270,863

Debt Service: Principal Interest and other

Capital outlay 334,493 231,670 514,048

Total expenditures 131,451,285 11,400,751 8,680,876 5,211,441 Excess (deficiency) of revenues over

expenditures 1,218,010 (23,289) 498,810 (210,445)

Other financing sources (uses) Transfers in Transfers (out) (316,200)

Total other financing sources (uses) (316,200)

Net change in fund balance 1,218,010 (339,489) 498,810 (210,445)

Fund balance, beginning of year 38,288,164 6,786,937 6,314,771 2,839,185

Fund balance, end of year $ 39,506,174 ~ 6,447,448 ~ 6,813,581 ~ 2,628,740


- 16 -

FIRE PREVENTION DEBT SERVICE CAPITAL AND LIFE SAFETY TOTAL

FUND PROJECTS FUND FUND 2012 2011

$ 4,375,814 $ $ $ 108,993,618 $ 107,347,651

1,582,972 1,720,751 37,316,489 34,615,354 10,788,828 10,399,854

32,259 355 446 117,991 172,120 1.253.436 5,089,851 5.901.272

4,408,073 1,253,791 446 163.889,749 160,157,002

53,100,844 52,819,556 17,365,645 16,760,540 11,059,083 10,905,405 18,684,485 16,764,663

9,428,088 9,334,542 6,359,874 6,119,469 4,689,600 4,915,422 6,636,962 6,768,346 4,942,518 4,816,144 9,091,745 9,265,323

2,056,881 14,175,324 11,615,320 1,242,719 1,270,147

244,660 312,786 428,613 357,528 270,863 712,893

4,495,000 4,495,000 4,495,000 391,200 391,200 391,200

216.480 1,296,691 3,223,250

4,886.200 2,273,361 163,903.914 160,847,534

(478,127) (1.019,570) 446 (14,165) (690,532)

316,200 316,200 (316,200)

316,200

(478,127) (703,370) 446 (14,165) (690,532)

5,296,560 787,098 18,128 60,330,843 61,021,375

~ 4,818,433 ~ 83,728 § 18,574 § 60,316,678 ~ 60,330,843

- 17 -

COMMUNITY CONSOLIDATED SCHOOL DISTRICT 15 RECONCILIATION OF THE GOVERNMENTAL FUNDS

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES

FOR THE YEAR ENDED JUNE 30, 2012

Net change in fund balances - total governmental funds

Amounts reported for governmental activities in the Statement of Activities are different because:

Governmental funds report capital outlay as expenditures. However, in the Statement of Activities, the cost of these assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which depreciation expense exceeds current year capital outlay net of capital deletions.

Certain revenues included in the Statement of Activities do not provide current financial resources and, therefore, are deferred in the fund statements:

Tuition revenue

The issuance and accretion of long-term debt (bonds, capital leases, etc.) provides current financial resources to the governmental funds, while its principal repayment consumes current financial resources of the governmental funds . Neither transaction, however, has any effect on net assets . This is the amount by which current year principal repayments exceed accretion from current year long-term financing arrangements.

Governmental funds report the effects of issuance costs, premiums, discounts and similar items when the debt is issued. However, these amounts are deferred and amortized in the Statement of Activities. This is the amount of the current year, net effect of these differences.

In the Statement of Activities, operating expenses are measured by the amounts incurred during the year. However, certain of these items are included in the governmental funds only to the extent that they require the expenditure of current financial resources:

Net IMRF Obligation $ Reserve for health claims Retirement incentive payable Retiree health plan Compensated absences

Change in net assets of governmental activities


- 18 -

(122,285) (328,372) 374,995

(1,226,848) (517)

$

$

(14,165)

(761,409)

(38,441 )

2,792,927

(36,722)

(1 ,303,027)

639,163

Assets

Cash and investments

Total assets

Liabilities

Due to student groups

Total liabilities

COMMUNITY CONSOLIDATED SCHOOL DISTRICT 15 AGENCY FUND

STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES AS OF JUNE 30, 2012


- 19 -

$

$

$

$

AGENCY STUDENT ACTIVITY

FUND

957,186

957,186

957,186

957,186

COMMUNITY CONSOLIDATED SCHOOL DISTRICT 15 NOTES TO BASIC FINANCIAL STATEMENTS


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Community Consolidated School District 15 (the "District") operates as a public school system governed by a seven-member board. The District is organized under the School Code of the State of Illinois, as amended. The accounting policies of the District conform to accounting principles generally accepted in the United States of America, as applicable to local governmental units of this type. The following is a summary ofthe more significant accounting policies of the District:

Reporting Entity Accounting principles generally accepted in the United States of America require that the financial statements of the reporting entity include: (1) the primary government, (2) organizations for which the primary government is financially accountable, and (3) other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete. The criteria provided in Government Accounting Standards Board Statements have been considered and there are no agencies or entities which should be presented with the District. Using the same criteria, the District is not included as a component unit of any other governmental entity.

A legally separate, tax exempt organization should be reported as a component unit of a reporting entity if all of the following criteria are met: (1) the economic resources received or held by the separate organization are entirely or almost entirely for the direct benefit of the primary government, its component units, or its constituents; (2) the primary government is entitled to, or has the ability to otherwise access, a majority of the economic resources received or held by the separate organization; (3) the economic resources received or held by an individual organization that the specific primary government, or its component units, is entitled to, or has the ability to otherwise access, are significant to that primary government. Blended component units, although legally separate entities, are, in substance, part of the government's operations and are reported with similar funds of the primary government. Each discretely presented component unit is reported in a separate column in the government-wide financial statements to emphasize that it is legally separate from the primary government. This report does not contain any component units.

Basis of Presentation

Government-wide Financial Statements The government-wide financial statements (i.e., the statement of net assets and the statement of activities) report information on all of the nonfiduciary activities of the District. The effect of interfund activity has been removed from these statements. The District's operating activities are all considered "governmental activities", that is, activities normally supported by taxes and intergovernmental revenues. The District has no operating activities that would be considered "business activities" .

The statement of activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function. Program revenues include: (1) amounts paid by the recipient of goods or services offered by the program and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function. Taxes and other items not properly included among program revenues are reported instead as general revenues.

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NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (CONTINUED)

Governmental Funds Financial Statements Governmental funds financial statements are organized and operated on the basis of funds and are used to account for the District's general governmental activities. Fund accounting segregates funds according to their intended purpose, and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions . A fund is an independent fiscal and accounting entity with a self-balancing set of accounts that comprise its assets, liabilities, reserves, fund balance, revenues and expenditures. The minimum number of funds is maintained consistent with legal and managerial requirements.

Separate financial statements are provided for all governmental funds and fiduciary funds; the fiduciary funds are excluded from the government-wide financial statements.

Measurement Focus and Basis of Accounting The government-wide financial statements are reported using the economic resources measurement focus, while the fiduciary fund statements do not have a measurement focus. The government-wide financial statements and the fiduciary fund financial statements are reported using the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue when all eligibility requirements have been met.

Governmental fund financial statements are reported using the flow of current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized when they are both "measurable and available". "Measurable" means that the amount ofthe transaction can be determined, and "available" means collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the District considers all revenues available ifthey are collected within 60 days after year-end except for state aid. State aid received after 60 days are being considered as available as historically, state aid collected within 60 days have represented all state aid expected to be collected. The state is currently behind on payments to local government agencies, which is a highly unusual circumstance, resulting in current year state aid collections after 60 days of year end. Expenditures are recorded when the related fund liability is incurred. However, expenditures for unmatured principal and interest on general long-term debt are recognized when due; and certain compensated absences, claims and judgments are recognized when the obligations are expected to be liquidated with expendable available financial resources.

Major Governmental Funds General Fund - the general operating fund of the District. It accounts for all financial resources except those required to be accounted for in another fund. This fund is primarily used for most of the instructional and administrative aspects of the District's operations. Revenues consist largely oflocal property taxes and state government aid.

Special Revenue Funds - account for the proceeds of specific revenue sources that are legally restricted or committed to expenditures for specified purposes, other than those accounted for in the Debt Service Fund, Capital Projects Funds or Fiduciary Funds.

Operations and Maintenance Fund - accounts for expenditures made for repair and maintenance of the District's buildings and land. Revenue consists primarily oflocal property taxes.

Transportation Fund - accounts for all revenue and expenditures made for student transportation. Revenue is derived primarily from local property taxes and state reimbursement grants.

- 21 -




Municipal Retirement/Social Security Fund - accounts for the District's portion of pension contributions to the Illinois Municipal Retirement Fund, payments to Medicare, and payments to the Social Security System for non-certified employees. Revenue to finance the contributions is derived primarily from local property taxes and personal property replacement taxes.

Debt Service Fund - accounts for the accumulation of resources that are restricted, committed, or assigned for, and the payment of, long-term debt principal, interest and related costs. The primary revenue source is local property taxes levied specifically for debt service.

Capital Project Funds - accounts for the financial resources that are restricted, committed, or assigned to be used for the acquisition or construction of, and/or additions to, major capital facilities.

Capital Projects Fund - accounts for construction projects and renovations financed through bond issues.

Fire Prevention and Life Safety Fund - accounts for State-approved life safety projects financed through serial bond issues or local property taxes levied specifically for such purposes.

Other Fund Types Fiduciary Funds - account for assets held by the District in a trustee capacity or as an agent for individuals, private organizations, other governments or other funds.

Agency Funds - include Student Activity Funds, Convenience Accounts and Other Agency Funds. These funds are custodial in nature and do not present results of operations or have a measurement focus. Although the Board of Education has the ultimate responsibility for Activity Funds, they are not local education agency funds. Student Activity Funds account for assets held by the District which are owned, operated and managed generally by the student body, under the guidance and direction of adults or a staff member, for educational, recreational or cultural purposes. Convenience Accounts account for assets that are normally maintained by a local education agency as a convenience for its faculty, staff, etc.

On-behalf payments (payments made by a third party for the benefit of the district, such as payments made by the state to the Teachers' Retirement System) have been recognized in the financial statements.

Property taxes, replacement taxes, certain state and federal aid, and interest on investments are susceptible to accrual. Other receipts become measurable and available when cash is received by the District and recognized as revenue at that time.

Grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant. Accordingly, when such funds are received, they are recorded as deferred revenues until earned.

All Financial Statements The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates.

- 22 -




Assets, Liabilities and Net Assets or Equity

Deposits and Investments State statutes authorize the District to invest in obligations ofthe U.S. Treasury, certain highly-rated commercial paper, corporate bonds, repurchase agreements, and the State Treasurer's Investment Pool. Investments are stated at fair value. Changes in fair value of investments are included as investment income.

Receivables and Payables Transactions between funds that are representative of lendinglborrowing arrangements outstanding at the end of the fiscal year are referred to as "due to/from other funds". These amounts are eliminated in the governmental activities column in the statement of net assets. Receivables are expected to be collected within one year.

Deferred Revenue Governmental funds report deferred revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Property taxes levied for the subsequent year are not earned and cannot be used to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received, but not yet earned. At the end of the current fiscal year, the various components of deferred revenue and unearned revenue reported in the governmental funds were as follows:

Unavailable Unearned Totals

Property taxes receivable for subsequent year $ $ 55,178,869 $ 55,178,869 Tuition receivable 84,556 84,556

Total $ 84.556 $ 55,178.869 $ 55,263,425

Property Tax Revenues The District must file its tax levy resolution by the last Tuesday in December of each year. The District's 2011 levy resolution was approved during the December 14, 2011 board meeting. The District's property tax is levied each year on all taxable real property located in the District and it becomes a lien on the property on January 1 of that year. The owner of real property on January 1 in any year is liable for taxes of that year.

The tax rate ceilings are applied at the fund level. These ceilings are established by state law subject to change only by the approval of the voters of the District.

The PTELA limitation is applied in the aggregate to the total levy (excluding certain levies for the repayment of debt). PTELA limits the increase in total taxes billed to the lessor of 5% or the percentage increase in the Consumer Price Index (CPI) for the preceding year. The amount can be exceeded to the extent there is "new growth" in the District's tax base. The new growth consists of new construction, annexations and tax increment finance district property becoming eligible for taxation. The CPI rates applicable to the 2011 and 2010 tax levies were 1.5% and 2.7%, respectively.

- 23-




Property taxes are collected by the Cook County Collector/Treasurer, who remits to the District its share of collections. Taxes levied in one year become due and payable in two installments: the first due on March 1 and the second due on the later of August 1 or 30 days after the second installment tax bill is mailed. The first installment is an estimated bill, and is fifty-five percent of the prior year's tax bill. The second installment is based on the current levy, assessment and equalization, and any changes from the prior year will be reflected in the second installment bill. Property taxes are normally collected by the District within 60 days of the due date.

The 2011 property tax levy is recognized as a receivable in fiscal 2012, net of estimated uncollectible amounts approximating 1 %. The District considers that the first installment of the 2011 levy is to be used to finance operations in fiscal 2012. The District has determined that the second installment of the 2011 levy is to be used to finance operations in fiscal 2013 and has deferred the corresponding receivable.

Personal Property Replacement Taxes Personal property replacement taxes are first allocated to the Municipal Retirement / Social Security Fund, and the balance is allocated to the remaining funds at the discretion of the District.

Prepaid Items Certain payments to vendors that reflect costs applicable to future accounting periods are recorded as prepaid assets.

Capital Assets Capital assets, which include land, buildings, building improvements, equipment, and vehicles are reported in the government-wide financial statements. Capital assets are defined by the District as assets with an initial individual cost of more than $5,000 and an estimated useful life of more than 1 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.

Depreciation of capital assets is provided using the straight-line method over the following estimated useful lives:

Assets Buildings and site improvements Equipment, vehicles, and food service equipment

Years 20-50 3-10

In the fund financial statements, capital assets used in governmental fund operations are accounted for as capital outlay expenditures of the governmental fund upon acquisition.

Compensated Absences Under terms of employment, employees are granted sick leave and vacations in varying amounts. Only benefits considered to be vested are disclosed in these statements.

All vested vacation and sick leave pay is accrued when incurred in the government-wide and proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements, or are payable with expendable available resources.

- 24-




Payments for vacation and sick leave will be made at rates in effect when the benefits are used. Accumulated vacation and sick leave liabilities at June 30, 2012 are determined on the basis of current salary rates and include salary related payments.

All administrators and teachers receive 12 sick days per year. The Superintendent receives 20 sick days per year. Once they have accumulated 89 sick days, an additional 3 days per year are given for a total of 15 days per year with an unlimited accumulation. All 12-month custodial staff receives 12 sick days per year. Once they have accumulated 89 sick days, an additional three days are given for a total of 15 days per year with an unlimited accumulation. Building secretaries and eleven month employees receive 11 sick days per year. Once they have accumulated 89 sick days, they are given a total of 15 days per year with an unlimited accumulation. Ten-month employees receive 10 sick days per year. Employees do not receive payment for unused sick accumulated sick days, except for the 12-month custodial staff, who upon retirement are paid for any days in excess of 240 days at a rate of $25 .00 per day.

The Superintendent receives 25 vacation days per year, cabinet members receive 22 vacation days per year. Supervisors receive 15 vacation days the first three years of employment and 20 days after four years. Custodial staffreceives 10 vacation days after one year, 15 days after five years and 20 days after 10 years.

The 12-month secretaries are the only administrative employees that are allowed vacation time that is earned based on the time period worked. 12-month secretaries with 2-4 years of experience are allowed 10 days, secretaries with 5-9 years of experience 15 days per year, and 12-month secretaries with 10 years or more are allowed 20 days per year. The employee has until the end of the following fiscal year to use the earned vacation days before losing them. When an employee resigns or is terminated, he or she will receive payment for earned vacation time.

Long-Term Obligations In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the statement of net assets . Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the applicable bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt.

In the fund financial statements, governmental funds recognize bond premiums and discounts, as well as bond issuance costs, during the period incurred. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

Equity Classifications

Equity is classified as net assets in the government-wide financial statements and displayed in three components:

Invested in capital assets, net of related debt - Consists of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets less than any unspent debt proceeds.

- 25 -


AS OF AND FOR THE YEAR ENDED JUNE 3D, 2012


Restricted net assets - Consists of net assets with constraints placed on their use either by 1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments or, 2) law through constitutional provisions or enabling legislation.

Unrestricted net assets - All other net assets that do not meet the definition of "restricted" or "invested in capital assets, net of related debt."

When both restricted and unrestricted resources are available for use, it is the District's policy to use restricted resources first and then unrestricted resources.

Equity is classified as fund balance in the fund financial statements and displayed in five components:

Nonspendable - includes amounts not in spendable form, such as inventory, or amounts required to be maintained intact legally or contractually (principal endowment) (e.g. inventory, pre-paid items, permanent scholarships).

Restricted - includes amounts constrained for a specific purpose by external parties (e.g. Debt Service, Capital Projects, State and Federal Grant Funds).

Committed - includes amounts constrained for a specific purpose by a government using its highest level of decision making authority, the Board of Education. This formal action must occur prior to the end of the reporting period, but the amount of the commitment, which will be subj ect to the constraints, may be determined in the subsequent period. Any changes to the constraints imposed require the same formal action of the Board of Education board that originally created the commitment.

Assigned - includes general fund amounts constrained for a specific purpose by the Board of Education or by an official that has been delegated authority to assign amounts. The Board of Education has declared that the Superintendent or the Superintendent's designee may assign amounts for a specific purpose. The Board of Education may also take official action to assign amounts. Additionally, all remaining positive spendable amounts in governmental funds, other than the General Fund, that are neither restricted nor committed are considered assigned. Assignments may take place after the end of the reporting period.

Unassigned - includes residual positive fund balance within the General Fund which has not been classified within the other above mentioned categories. Unassigned fund balance may also include negative balances for any governmental fund if expenditures exceed amounts restricted, committed or assigned for those specific purposes.

In circumstances where an expenditure is to be made for a purpose for which amounts are available in multiple fund balance classifications, the order in which resources will be expended in the General Fund is as follows: restricted fund balance, followed by committed fund balance, assigned fund balance, and lastly, unassigned fund balance. In all other funds (Special Revenue, Debt Service, Capital Projects), assigned fund balance will be spent first, followed by committed fund balance, and then restricted fund balance.

Governmental fund balances reported on the fund financial statements at June 30, 2012 are as follows:

The nonspendable fund balance in the General Fund and Operations & Maintenance Fund consists of $450,592 and $54,040, respectively for prepaid items. The restricted fund balance in the General Fund is comprised of $278,471 representing the remaining unspent proton ofthe restricted tort immunity levy. The assigned fund balance in the General fund is comprised of $4,211 ,671 for Self Insurance. The remaining restricted and assigned fund balances are for the purpose of the respective funds as described in the Major Governmental Funds section.

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Comparative Data The financial statements include summarized prior-year comparative information. Such information does not include sufficient detail to constitute a presentation in conformity with accounting principles generally accepted in the United States of America. Accordingly, such information should be read in conjunction with the District's financial statements for the year ended June 30, 2011 , from which such summarized information was derived.

Eliminations and Reclassifications In the process of aggregating data for the government-wide financial statements, some amounts reported as interfund activity and balances were eliminated or reclassified.

NOTE 2 - STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY

Excess of Expenditures over Budget For the year ended June 30,2012, expenditures exceeded budget in the Operations & Maintenance and Capital Projects funds by $297,667 and $244,991 respectively. These excess amounts were funded by available fund balance.

NOTE 3 - DEPOSITS AND INVESTMENTS

At year end, the District's cash and investments was comprised of the following:

Government-wide Fiduciary Total

Cash and investments ~ 65,894,604 ~ 957,186 ~ 66,851,790

Total -~ 65,894,604 ~ 957,186 ~ 66,851,790

For disclosure purposes, this amount is segregated into the following components: 1) cash on hand 2) deposits with financial institutions, which include amounts held in demand accounts, savings accounts and non-negotiable certificates of deposit; and 3) other investments, which consist of all investments other than certificates of deposit, as follows:

Cash on hand Deposits with financial institutions Illinois School District Liquid Asset Fund Illinois Funds

Total

- 27-

Cash and investments

$ 4,275 59,445,885

4,535,136 2.866,494

$ 66,851,790



NOTE 3 - DEPOSITS AND INVESTMENTS - (CONTINUED)

Interest Rate Risk. Interest rate risk is the risk that changes in interest rates will adversely affect the value of an investment. The District does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. However, the District's policy states there shall be an appropriate periodic review of the investment portfolio, its effectiveness in meeting the school district's need for safety, liquidity, rate of return, and diversification, and its general performance.

Credit Risk. State Statutes limits the investments in commercial paper and corporate bonds to the top three ratings of two nationally recognized statistical rating organizations (NRSRO's). The District has no investment policy that would further limit its investment choices.

The Illinois School District Liquid Asset Fund Plus (ISDLAF+) is a not-for-profit investment trust formed pursuant to the Illinois Municipal Code and managed by a Board of Trustees elected from participating members. It is not registered with the SEC as an investment company. Investments are rated AAAm and are valued at share price, which is the price for which the investment could be sold.

Illinois Funds is an investment pool managed by the State of Illinois, Office of the Treasurer, which allows governments within the State to pool their funds for investment purposes. Illinois Funds is not registered with the SEC as an investment company, but does operate in a manner consistent with Rule 2a7 of the Investment Company Act of 1940. Investments in Illinois Funds are rated AAAm and are valued at Illinois Funds' share price, which is the price for which the investment could be sold.

Concentration of Credit Risk. The District's policy states investments should be invested based on investment and diversification guidelines that are appropriate to the nature of the funds, the purpose for the funds, and the amount of the public funds within the investment portfolio.

Custodial Credit Risk - Deposits. With respect to deposits, custodial credit risk refers to the risk that, in the event of a bank failure, the District's deposits may not be returned to it. The District's investment policy limits the exposure to deposit custodial credit risk by requiring all deposits in excess of FDIC insurable limits to be secured by collateral in the event of default or failure of the financial institution holding the funds. As of June 30, 2012, the bank balance of the District's deposit with fmancial institutions ($62,367,172) was fully collateralized or insured.

Custodial Credit Risk - Investments. With respect to investments, custodial credit risk is the risk that, in the event of the failure of the counterparty, the government will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The District's investment policy limits the exposure to investment custodial credit risk by requiring all investments be secured by private insurance or collateral.

Separate cash and investment accounts are not maintained for all District funds; instead, the individual funds maintain their invested and uninvested balances in the common checking and investment accounts, ~ith accounting records being maintained to show the portion of the common account balance attributable to each participating fund.

Occasionally certain funds participating in the common bank accounts will incur overdrafts (deficits) in the account. The overdrafts result from expenditures that have been approved by the Board of Education.

NOTE 4 - INTERFUND TRANSFERS

During the year, the Board of Education transferred $316,200 to the Capital Projects Fund from the Operations and Maintenance Fund.

State law allows for the above transfer.

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NOTE 5 - CAPITAL ASSETS

Capital asset activity for the District for the year ended June 30,2012, was as follows:

Beginning Balance Increases Decreases

Caeital assets not being deereciated:

Land $ 7,827,932 $ $ $ Construction in progress 122,100 620,870 122.100

Total capital assets not being depreciated 7,950,032 620.870 122,100

Caeital assets being deere cia ted:

Site improvements 2,996,197 9,435 Buildings 98,259,680 1,656,752 Equipment 18,621,501 Vehicles 11,268,534 546,955 291,474 Food service equipment 377,189

Total capital assets being depreciated 131,523,101 2,213,142 291,474

Less Accumulated Deereciation for:

Site improvements 2,534,390 58,615 Buildings 54,645,455 2,067,001 Equipment 15,514,860 542,857 Vehicles 6,510,641 760,069 262,326 Food service equipment 233,627 15,631

Total accumulated depreciation 79,438,973 3.444,173 262,326

Net capital assets being depreciated 52,084,128 (1,231 .031 ) 29,148

Net governmental activities capital assets $ 60,034,160 $ (610,161) $ 151,248 $

Depreciation expense was recognized in the operating activities of the District as follows:

Governmental Activities

Regular programs $ Pupils Operations and maintenance Transportation Food service

Total depreciation expense - governmental activities ~

- 29-

Ending Balance

7,827,932 620,870

8,448,802

3,005,632 99,916,432 18,621,501 11,524,015

377,189

133,444,769

2,593,005 56,712,456 16,057,717

7,008,384 249,258

82,620,820

50.823,949

59,272,751

Dee.reciation

1,565,915 782,957 189,108 838,365

67,828

31444,173



NOTE 6 - OPERATING LEASES

The District leases equipment under operating leases. Total costs for such leases were $589,200 for the year ended June 30,2012. At June 30,2012, future minimum lease payments for these leases are as follows:

2013 2014

Total

Year Ending June 3D,

NOTE 7 - LONG TERM LIABILITIES

$

$

Amount

313,356 117,615

430,971

Changes in General Long-term Liabilities. The following is the long-term liability activity for the District for the year ended June 30, 2012:

Beginning Ending Due Within Balance Additions Deletions Balance One Year

General obligation bonds $ 43,959,474 $ 1,702,073 $ 4,495,000 $ 41,166,547 $ 4,495,000 Deferred refunding (242,560) (24,256) (218,304) Unamortized discount (51,484) (4,463) (47,021 )

Total bonds payable 43.665.430 1,702,073 4,466,281 40,901,222 4,495,000 Reserve for future health claims 1,558,947 15,307,406 14,979,034 1,887,319 1,887,319 Retirement incentive programs 1,003,949 374,995 628,954 318,454 Retiree health plan OPEB Obligation 4,772,879 1,918,101 691,253 5,999,727 Net IMRF Obligation 299,866 2,466,793 2,344,508 422,151 Compensated absences 141,959 865,543 865,026 142,476 127,951

Total long-term liabilities -governmental activities ~ 51,443,030 lli 22,259,916 ~ 23,721 1097 ~ 49,981,849 lli 6,828,724

Additions represent $1,702,073 of accretion on capital appreciation bonds.

The obligations for future health claims, retirement incentive program, retiree health plan, and compensated absences will be repaid from the General Fund. The net IMRF obligation will be paid from the Municipal Retirement / Social Security Fund.

- 30-



NOTE 7 - LONG TERM LIABILITIES - (CONTINUED)

General Obligation Bonds. General obligation bonds are direct obligations and pledge the full faith and credit of the District. General obligation bonds currently outstanding are as follows:

Original Face Carrying Purpose Interest Rates Indebtedness Amount Amount

Series Working Cash and Limited Tax Capital Appreciation Bonds dated August 9, 2001 are due in annual installments through December 1, 2020 4.99%-5.69% $ 44,365,000 $ 40,455,000 $ 31,751 ,547

Series Working Cash and Refunding Bonds dated May 16, 2006 are due in annual installments through December 1,2023 4.10%-4.20% 9,415,000 9,415,000 9,415,000

Total ~ 53,780,000 ~ 49,870,000 ~ 41,166,547

In prior years, the District defeased certain general obligation and other bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the District's financial statements. At June 30,2012, $2,790,180 of bonds outstanding are considered defeased.

Annual debt service requirements to maturity for general obligation bonds are as follows for governmental type activities:

Principal Interest Total

2013 $ 4,495,000 $ 390,850 $ 4,885,850 2014 4,495,000 390,850 4,885,850 2015 4,495,000 390,850 4,885,850 2016 4,495,000 390,850 4,885,850 2017 4,495,000 390,850 4,885,850 2018 - 2022 20,990,000 1,892,545 22,882,545 2023 - 2024 6.405.000 270,850 6.675,850

Total $ 49,870,000 ~ 4,117,645 ~ 53,987,645

The District is subject to the Illinois School Code, which limits the amount of certain indebtedness to 6.9% of the most recent available equalized assessed valuation of the District. As of June 30, 2012, the statutory debt limit for the District was $267,794,574, providing a debt margin of $240,725,514. There are numerous covenants with which the District must comply in regard to these bond issues. As of June 30, 2012, the District was in compliance with all significant bond covenants, including federal arbitrage regulations.

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NOTE 7 - LONG TERM LIABILITIES - (CONTINUED)

Early Retirement Incentive Benefits. As described in Note 9, the District participates in a Retirement Incentive Option Plan ("RIOP") and Voluntary Separation Option Plan ("VSOP"). The obligations under the Retiree Incentive Programs will be paid from the General Fund. The annual benefits payable are as follows:

2013 2014 2015

Total

NOTE 8 - RISK MANAGEMENT

$

$

Amount

318,454 238,500

72,000

628,954

The District is exposed to various risks of loss related to employee health benefits; workers' compensation claims; theft of, damage to, and destruction of assets; and natural disasters. The District purchases insurance from private insurance companies for general liability and other coverages not included below. Premiums have been recorded as expenditures in the appropriate funds. There have been no significant reductions in insurance coverage from coverage in the prior years. Settled claims resulting from these risks have not exceeded insurance coverage in any of the past three years.

The District is self-insured for medical, workers' compensation, and unemployment compensation coverage that is provided to District personnel. A third party administrator administers claims for a monthly fee per participant. Expenditures are recorded as incurred in the form of direct contributions from the District to the third party administrator for payment of employee health, worker's compensation, and unemployment compensation claims and administration fees. The District's liability will not exceed $200,000 per employee for medical coverage, as provided by stop-loss provisions incorporated in the plan. There is no aggregate stop-loss provision incorporated in the plan.

At June 30,2012, total unpaid claims, including an estimate of claims that have been incurred but not reported to the administrative agent, totaled $1,887,319. The estimates are developed based on reports prepared by the administrative agent. The District does' not allocate overhead costs or other nonincremental costs to the claims liability. For the two years ended June 30, 2012 and June 30, 2011, changes in the liability for unpaid claims are summarized as follows: At June 30, 2012, this includes $1,887,319 of estimated incurred but not reported claims and $1,239,097 of known reported claims.

Current Year Claims Payable Claims and

Beginning of Changes in Claims Claims Payable Year Estimates Payments End of Year

Fiscal Year 2011 $ 3,914,767 ~ 14,839,584 ~ 16,014,211 ~ 21740,140

Fiscal Year 2012 $ 2,740,140 ~ 15,365,310 ~ 14,979,034 ~ 3,126,416

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NOTE 9 - OTHER POST-EMPLOYMENT BENEFITS

Teachers' Health Insurance Security The District participates in the Teacher Health Insurance Security (THIS) Fund, a cost-sharing, multipleemployer defined benefit postemployment healthcare plan that was established by the Illinois legislature for the benefit of Illinois public school teachers employed outside the city of Chicago. The THIS Fund provides medical, prescription, and behavioral health benefits, but does not provide vision, dental, or life insurance benefits to annuitants of the Teachers' Retirement System (TRS). Annuitants may participate in the 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 with the Governor's approval. The Illinois Department of Health care and Family Services (HFS) and the Illinois Department of Central Management Services (CMS) administer the plan with the cooperation ofTRS. Effective July 1, 2012, in accordance with Executive Order 12-01, the plan is administered by CMS with the cooperation ofTRS. Section 6.6 ofthe 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 TillS Fund.

The percentage of employer required contributions in the future will not exceed 105 percent of the percentage of salary actually required to be paid in the previous fiscal year.

On Behalf Contributions to THIS Fund. The State of Illinois makes employer retiree health insurance contributions on behalf of the District. State contributions are intended to match contributions to THIS Fund from active members which were 0.88 percent of pay during the year ended June 30, 2012. State of Illinois contributions were $637,547, and the District recognized revenues and expenditures of this amount during the year.

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 percent of pay, respectively. For these years, state contributions on behalf of District employees were $615,217 and $577,112, respectively.

Employer Contributions to THIS Fund. The District also makes contributions to THIS Fund. The employer THIS Fund contribution was 0.66 percent during the years ended June 30, 2012 and June 30, 2011, and 0.63 percent during the year ended June 30, 2010. For the year ended June 30, 2012, the District paid $478,161 to the THIS Fund. For the years ended June 30, 2011 and 2010, the District paid $461 ,413 and $432,834 to the TillS Fund, respectively, which were 100 percent 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, 201 S. Grand Ave., Springfield, IL 62763-3838.

Retiree's Health Plan The District administers a single-employer defined benefit healthcare plan ("the Retiree's Health Plan"). The plan provides health insurance contributions for eligible retirees and their spouses through the District's group health insurance plan, which covers both active and retired members. Benefit provisions are established through collective bargaining agreements and may be amended only through negotiations between the board and the unions. The following plan provisions identified in these collective bargaining agreements are included in the general Retiree's Health Plan. Plans differ depending on when and under what agreement the employee was contracted. The Reitree's Health Plan does not issue a publicly available financial report .

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NOTE 9 - OTHER POST-EMPLOYMENT BENEFITS - (CONTINUED)

Contribution for Retirement Incentive Option Plan ("RIOP") Retirees

Retirees under RIOP shall not be eligible to remain on the Palatine insurance plan. In consideration thereof, the District shall make four (4) year cash payments as a contribution toward TRIP or other non-District insurance following retirement in the amount of $375/month for single and an additional $250/month for a teacher's spouse. In lieu of monthly insurance contributions, the retiree may elect a cash payment made in a lump sum payment within 30 days following retirement, in the amounts of $11,250 for single and $7,500 for a teacher's spouse. This agreement covers employees who retired during September 1, 2006 through August 31, 2009.

Voluntary Separation Option Plan ("VSOP") Retirees

Retirees under this plan have the option to continue insurance coverage at 50% of full cost for health and dental coverage. Under the Classroom Teachers' Council negotiated agreement in 2006, staff retiring under VSOP also had the option to receive the entire district contribution in one lump sum for 5 years or age 65 or to take a monthly stipend for 5 years or age 65 in lieu of district insurance coverage. This Agreement was in effect until June 2009.

A subset of grandfathered VSOP retirees receive a 100% subsidy for medical, dental, and vision coverage. These retirees were identified by Palatine on the census.

Regular Retirees

Retirees not eligible for RIOP or VSOP coverage must pay the full cost for medical, dental, vision coverage.

The District's annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required contribution of the employer (ARC) The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The following table shows the components of the District's annual OPEB cost for the year, the amount actually contributed to the Retiree's Health Plan, and changes in the District's net OPEB obligation to the Retiree's Health Plan:

Annual required contribution Interest on net OPEB obligation Adjustment to annual required contribution

Annual OPEB cost Contributions made

Increase in net OPEB obligation (asset)

Net OPEB Obligation (Asset) - Beginning of Year

Net OPEB Obligation (Asset) - End of Year

$

$

- 34-

1,859,000 177,302

(118,201)

1,918,101 (691 ,253)

1,226,848

4,772,879

5,999,727



NOTE 9 - OTHER POST-EMPLOYMENT BENEFITS - (CONTINUED)

The District's annual OPEB cost, the percentage of annual OPEB cost contributed to the Retiree's Health Plan, and the net OPEB obligation for June 30, 2012 is as follows :

Fiscal Year Ended

June 30, 2012 June 30, 2011 June 30, 2010

AnnualOPEB Cost

$ 1,918,101 1,918,101 1,873,000

Percentage of Annual OPEB Net OPEB Cost Contributed

Obligation (Asset)

36.04 % $ 36.04 % 36.91 %

5,999,727 4,772,879 3,546,031

The funded status of the Retiree's Health Plan as of July 1, 20 11, the most recent actuarial valuation date, is as follows:

Actuarial accrued liability (AAL) $ 25,986,689 Actuarial value of plan assets

Unfunded Actuarial Accrued Liability (UAAL) $ 25,986,689

Funded ratio (actuarial value of plan assets/AAL) -%

Covered payroll (active plan members) $ 82,656,237

UAAL as a percentage of covered payroll 31.44%

Actuarial valuations of an ongoing plan involve estimates for the value of reported amounts and assumptions about the probability of occunence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts detennined regarding the funded status of the plan and annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes 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 benefits .

Projections of benefits for financial reporting purposes are based on the substantive plan (the plan is understood by the employer and plan members) and include the type 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 methods and assumptions used include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations.

In the July 1, 2011 actuarial valuation, the entry age actuarial cost method was used. The actuarial assumptions include a 5 percent investment rate of return and an annual healthcare cost trend rate of 8 percent initially, reduced by decrements to an ultimate rate of 6 percent. Both rates include a 3 percent inflation assumption. The actuarial value of the Retiree's Health Plan assets was detennined using techniques that spread the effects of short-term volatility in the market value of investments over a three-year period. The Retiree's Health Plan's unfunded actuarial accrued liability is being amortized as a level of percentage of proj ected payroll on an open basis. The remaining amortization period at June 30, 2012 is 29 years.

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NOTE 10 - RETIREMENT SYSTEMS

The retirement plans of the District include the Teachers' Retirement System of the State of Illinois (TRS) and the Illinois Municipal Retirement Fund (IMRF). Most funding for TRS is provided through payroll withholdings of certified employees and contributions made by the State of Illinois on-behalf of the District. IMRF is funded through property taxes and a perpetual lien of the District's corporate personal property replacement tax. Each retirement system is discussed below.

Teachers' Retirement System The District participates in the Teachers' Retirement System of the State of Illinois (TRS). TRS is a cost-sharing, multiple-employer defined benefit pension plan that was created by the Illinois legislature for the benefit of Illinois public school teachers employed outside the city of Chicago.

The Illinois Pension Code outlines the benefit provisions ofTRS, and amendments to the plan can be made only by legislative action with the governor's approval. The State of Illinois maintains primary responsibility for the funding of the plan, but contributions from participating employers and members are also required. The TRS Board of Trustees is responsible for the System's administration.

TRS members include all active nonannuitants that are employed by a TRS-covered employer to provide services for which teacher certification is required. The active member contribution rate for the year ended June 30,2012 was 9.4 percent of creditable earnings. The same contribution rate applies to members whose first contributing service is on or after January 1, 2011, the effective date of the benefit changes contained in Public Act 96-0889. These contributions, which may be paid on behalf of the employees by the employer, are submitted to TRS by the District. The active member contribution rate was also 9.4 percent for the years ended June 30, 2011 and 2010.

On Behalf Contributions. The State of Illinois also makes contributions directly to TRS on behalf of the District's TRS-covered employees. For the year ended June 30, 2012, State of Illinois contributions were based on 24.91 percent of creditable earnings not paid from federal funds, and the District recognized revenue and expenditures of $18,046,938 in pension contributions that the State of Illinois paid directly to TRS. For the years ended June 30, 2011 and 2010, the State of Illinois contributions rates as percentages of creditable earnings not paid from federal funds were 23.10 percent ($16,149,446) and 23.38 percent ($16,062,940), respectively.

The District makes other types of employer contributions directly to TRS:

2.2 Formula Contributions. For the years ended June 30, 2012, 2011 and 2010, the District contributed 0.58 percent of creditable earnings for the 2.2 formula change. This rate is specified by statute. Contributions for those years were $420,202, $405,484 and $398,482, respectively.

Federal and Trust Fund Contributions. When TRS members are paid from federal and special trust funds administered by the District, there is a statutory requirement for the District to pay an additional TRS contribution from those funds. Under a policy adopted by the TRS Board of Trustees that was first effective in 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 percent of salaries paid from federal and special trust funds. For the years ended June 30, 2011 and 2010, the employer pension contribution was 23.10 and 23.38 percent of salaries paid from those funds, respectively. For the year ended June 30,2012, salaries totaling $1,310,140 were paid from federal and special trust funds that required employer contributions of $326,356, which was equal to the District's actual contribution. For the years ended June 30, 2011 and 2010, required District contributions were $337,061 and $302,962, respectively.

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NOTE 10 - RETIREMENT SYSTEMS - (CONTINUED)

Early Retirement Option. The District is also required to make one-time employer contributions to TRS for members retiring under the Early Retirement Option (ERO). The payments vary depending on the age and salary of the member. The maximum employer ERO contribution is 117.5 percent and applies when the member is age 55 at retirement. For the year ending June 30, 2012, the District paid $118,071 to TRS for District contributions under the ERO program. For the years ended June 30,2011 and 2010, the District paid $45,268 and $74,125, respectively, in ERO contributions.

Salary increases over 6 percent and excess sick leave. If an employer grants salary increases over 6 percent 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 percent. For the years ended June 30, 2012, 2011 and 2010, the District paid $23,885, $11,363 and $81,193, respectively, to TRS for employer contributions due on salary increases in excess of 6 percent. '

Further Information on TRS. TRS fmancial information, an explanation ofTRS's 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, 2011. The report for the year ended June 30, 2012, 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, P.O. Box 19253,2815 West Washington Street, Springfield, IL 62794-9253. The most current report is also available on the TRS Web site at http://trs.illinois.gov.

Illinois Municipal Retirement Fund Plan Description. The District's defined benefit pension plan for Regular employees provides retirement and

~ disability benefits, post retirement increases, and death benefits to plan members and beneficiaries. The District's plan is affiliated with the Illinois Municipal Retirement Fund (IMRF), an agent multiple-employer plan. Benefit provisions are established by statute and may only be changed by the General Assembly of the State of Illinois. IMRF issues a publicly available financial report that includes financial statements and required supplementary information. The report may be obtained on-line at www.irnrf.org.

Funding Policy. As set by statute, District employees participating in IMRF are required to contribute 4.50 percent 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 District's contribution rate for calendar year 2012 was 12.18 percent of annual covered payroll. The employer annual required contribution rate for calendar year 2011 was 11.12 percent. The District also contributes for disability benefits, death benefits and supplemental retirement benefits, all of which are pooled at the IMRF level. Contribution rates for disability and death benefits are set by the IMRF Board of Trustees, while the supplemental retirement benefits rate is set by statute.

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NOTE 10 - RETIREMENT SYSTEMS - (CONTINUED)

Annual Pension Cost and Net Pension Obligation. The District's annual pension cost and net pension obligation are as follows :

Annual required contribution Interest on net pension obligation Adjustment to annual pension contribution Annual pension cost Contributions made Change in net pension obligation Net Pension Obligation - Beginning of Year Net Pension Obligation - End of Year

$

~

2,466,793

2,466,793 (2,344,508)

122,285 299,866 422,151

The interest on the beginning net pension obligation and adjustment to the alIDual required contribution are considered immaterial and have not been included in the annual pension cost calculation.

The District's annual pension cost, percentage of annual pension cost contributed, and net pension obligation for for the current year and each of the two preceding years were as follows:

Fiscal Year Ended

June 30, 2012 June 30, 2011 June 30, 2010

Annual Pension Cost

$ 2,466,793 2,390,655 1,851,996

Percentage of Annual Pension

Cost Contributed

95 % $ 87 %

100 %

Net Pension Obligation

422,151 299,866

The required contribution for fiscal year 2012 was determined as part of the December 31, 2009, actuarial valuation using the entry age actuarial cost method. The actuarial assumptions at December 31, 2009, included (a) 7.50% investment rate of return (net of administrative expenses), (b) projected salary increases of 4.00% a year, attributable to inflation, (c) additional projected salary increases ranging from 0.4% to 10% per year depending on age and service, attributable to seniority/merit, and (d) post-retirement benefit increases of3% annually. The actuarial value ofIMRF assets was determined using techniques that smooth the effects of shortterm volatility in the market value of investments over a five-year period with a 20% corridor between the actuarial and market value of assets. The employer 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.

Funded Status and Funding Progress. As of December 31,2011, the most recent actuarial valuation date, the Regular plan was 72.07 percent funded. The actuarial accrued liability for benefits was $56,538,838 and the actuarial value of assets was $40,749,550, resulting in an underfunded actuarial accrued liability (UAAL) of $15,789,288. The covered payroll for calendar year 2011 (annual payroll of active employees covered by the plan) was $21,083,703 and the ratio of the UAAL to the covered payroll was 74.89 percent.

The schedule of funding progress, presented as RSI following the notes 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 11 - CONTINGENT LIABILITIES

The District is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, in the opinion of the District's attorneys, the resolution of these matters will not have a material adverse effect on the financial condition of the District.

- 38 -



NOTE 12 - STATE AND FEDERAL AID CONTINGENCIES

The District has received federal and state grants for specific purposes that are subject to review and audit by the grantor agencies. Such audits could lead to requests for reimbursements to the grantor agency for expenditures disallowed under terms of the grants. Management believes such disallowance, if any, would be immaterial.

NOTE 13 - STATE FUNDING

The District receives approximately 23% of its annual revenue from the State of Illinois ("the state"). Published reports have indicated that the state is experiencing financial difficulties which have led to delays in the state's funding of certain grant programs to Illinois school districts. Included in District revenue for the year ended June 30, 2012 is $4,228,731 of amounts the state has acknowledged as due the District in past due grant funds.

It is believed that the state will continue to delay payment of certain grants during subsequent fiscal years. At June 30, 2012, the District feels it has adequate fund balance reserves to sustain the revenue shortfall; however, continued delays into subsequent years, or a change in the method of state funding, could have an adverse effect on future District financial results.

NOTE 14 - EFFECT OF NEW ACCOUNTING STANDARDS ON

CURRENT-PERIOD FINANCIAL STATEMENTS

The Governmental Accounting Standards Board (GASB) has approved GASB Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position; Statement No. 67, Financial Reportingfor Pension Plans - an amendment ofGASB Statement No. 25; and Statement No. 68, Accounting and Financial Reportingfor Pensions - an amendment to GASB Statement No. 27. Application of these standards may restate portions of these financial statements.

- 39-

Actuarial Valuation

Date

12/31/11 12/31/10 12/31/09 12/31/08 12/31/07 12/31/06

Actuarial Valuation

Date

12/31/11 12/31/10 12/31/09 12/31/08 12/31/07 12/31/06

COMMUNITY CONSOLIDATED SCHOOL DISTRICT 15 ILLINOIS MUNICIPAL RETIREMENT FUND

SCHEDULE OF EMPLOYER'S CONTRIBUTIONS AND ANALYSIS OF FUNDING PROGRESS AS OF AND FOR THE YEAR ENDED JUNE 30, 2012

Annual Pension Percentage of Net Pension Cost (APe) APC Contributed Obligation

$ 2,466,793 95% $ 422,151 2,390,655 87% 299,866 1,851,996 100% 1,888,282 100% 1,913,195 100% 1,808,317 100%

Actuarial UAAL as a Actuarial Value Accrued Liability Unfunded ML Percentage of

of Assets (ML) Entry Age (UML) Funded Ratio Covered Payroll Covered Payroll (a~ (b} (b-a} {a/b~ (c} ((b-a}/cl

$ 40,749,550 $ 56,538,838 $ 15,789,288 72.07% $ 21 ,083,703 74.89% 38,681,042 53,073,936 14,392,894 72.88% 20,680,410 69.60% 37,994,629 50,272,559 12,277,930 75.58% 20,152,292 60.93% 37,342,226 48,565,308 11,223,082 76.89% 19,426,772 57.77% 46,454,464 49,060,158 2,605,694 94.69% 18,830,658 13.84% 43,487,616 44,790,159 1,302,543 97.09% 17,522,452 7.43%

See Auditor's Report and Notes to Required Supplementary Information

- 40 -

Actuarial Valuation

Date

7/1/10 7/1/08

COMMUNITY CONSOLIDATED SCHOOL DISTRICT 15 SCHEDULE OF FUNDING PROGRESS FOR RETIREE'S HEALTH PLAN

AS OF JUNE 30, 2012

Actuarial Actuarial Value Accrued Liability Unfunded AAL

of Assets (AAL) Entry Age (UAAL) Funded Ratio Covered Payroll {a} {b} {b-a} {alb} {c)

$ $ 25,986,689 $ 25,986,689 NIA $ 82,656,237 26,287,000 26,287,000 NIA 86,210,672

UAAL as a Percentage of

Covered Payroll {{b-a}/c}

31.44% 30.49%

Valuations must be performed every two years for OPES plans with more than 200 members and at least every three years for plans with fewer than 200 members.


- 41 -

COMMUNITY CONSOLIDATED SCHOOL DISTRICT 15 GENERAL FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL FOR THE YEAR ENDED JUNE 30, 2012

WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2011

2012 ORIGINAL VARIANCE WITH 2011 BUDGET FINAL BUDGET ACTUAL FINAL BUDGET ACTUAL

Revenues

Local sources

General levy $ 86,004,083 $ 83,808,946 $ 83,921,559 $ 112,613 $ 82,773,543 Tort immunity levy 921,780 1,166,635 1,169,639 3,004 126,087 Special education levy 861,003 844,361 845,153 792 1,223,436 Corporate personal property

replacement taxes 851,389 691,390 691,390 853,269 Regular tuition from pupils or

parents (in state) 38,000 38,000 47,543 9,543 35,890 Special education - tuition

from other LEA's (in state) 775,000 775,000 291,981 (483,019) 957,024 Investment income 170,878 52,302 62,484 10,182 105,569 Sales to pupils - lunch 1,100,000 1,100,000 1,046,336 (53,664) 1,075,830 Sales to pupils - breakfast 16,000 16,000 21,369 5,369 19,219 Sales to pupils - a la carte 475,000 435,000 541,165 106,165 435,196 Sales to adults 23,000 23,000 25,189 2,189 23,726 Other food service 19,000 19,000 17,706 (1,294) 23,960 Admissions - athletic 60,000 60,000 78,974 18,974 71,096 Admissions - other 5,000 5,000 (5,000) Rentals - regular textbook 925,000 900,000 855,508 (44,492) 913,526 Rentals 3,750 3,750 9,061 5,311 6,945 Contributions and donations

from private sources 4,500 4,500 Refund of prior years'

expenditures 5,000 5,000 13,338 8,338 40,389 Proceed's from vendor

contracts 93,541 93,541 2,241 Payment from other LEA's 117,511 117,511 144,964 Other local fees 27,500 27,500 26,337 (1,163) 26,744 Other 450,000 450,000 112,078 (337,922) 300,365

Total local sources 92,731,383 90,420,884 89.992,362 (428,522) 89,159,019

State sources

General state aid 7,186,079 7,342,293 7,342,173 (120) 7,023,603 Special education - private

facility tuition 162,711 262,751 262,751 167,743 Special education -

extraordinary 1,998,159 1,742,997 1,742,997 2,089,773 Special education - personnel 2,329,949 2,392,367 2,392,367 2,288,752 Special education -

orphanage - individual 312,373 281,028 143,325 (137,703) 487,305 Special education -

orphanage - summer 4,518 12,695 12,695 4,559 Special education - summer

school 19,968 25,047 25,047 20,150 Bilingual education -

downstate - TPI 627,370 970,000 719,229 (250,771) 973,861


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State free lunch & breakfast $ 50,000 $ 50,000 $ 71,734 $ 21,734 $ 78,114 Other restricted revenue from

state sources 488,201 488,201 508,392 20,191 67,872 On behalf payment to TRS

from the state 17,871,274 17,871,274 18,684,485 813,211 16,764,663

Total state sources 31,050,602 31,438,653 31,905,195 466,542 29,966,395

Federal sources

National school lunch program 1,400,000 1,600,000 1,808,661 208,661 1,690,884

Special milk program 700 700 1,151 451 1,012 School breakfast program 180,000 250,000 312,638 62,638 279,805 Summer food service

admin/program 11,000 11,000 20,800 9,800 7,416 Fresh fruits & vegetables 30,000 31,500 39,673 8,173 Title I - Low income 1,216,704 2,206,276 2,182,667 (23,609) 1,392,592 Title IV - Saf~ & drug free

schools - formula 23,943 3,610 3,610 6,234 Federal - special education -

preschool flow-through 107,567 107,443 109,984 2,541 103,821 Federal - special education -

IDEA - flow-through/low incident 2,727,735 2,855,495 2,582,046 (273,449) 2,842,882

Federal - special education -IDEA - room & board 57,727 57,727 56,580

Title I - low income 341,484 355,412 13,928 247,440 IDEA - part b - preschool 33,111 IDEA - part b - flow-through 121,851 121,851 956,941 Other ARRA funds - XI 111 ,895 222,334 222,334 424,667 Title III - English language

acquisition 460,122 526,578 478,992 (47,586) 339,665 Title II - Teacher quality 278,940 397,638 234,748 (162,890) 238,595 Medicaid matching funds -

administrative outreach 300,000 550,000 348,678 (201,322) 586,574 Medicaid matching funds -

fee-for-service program 400,000 1,362,000 1,571 ,145 209,145 945,200 Other restricted revenue from

federal sources 20,042 319.621 319,621 246.435

Total federal sources 7,268,648 10,462,448 10,771,738 309,290 10,399,854

Total revenues 131,050,633 132,321,985 132,669,295 347,310 129,525,268


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Expenditures

Instruction

Regular programs Salaries $ 44,550,470 $ 45,056,033 $ 44,369,968 $ 686,065 $ 42,916,779 Employee benefits 7,911,771 6,571,929 6,783,098 (211,169) 7,492,143 On-behalf payments to

TRS from the state 17,871,274 17,871,274 18,684,485 (813,211 ) 16,764,663 Purchased services 40,417 40,417 34,101 6,316 34,512 Supplies and materials 1,047,374 1,050,997 765,767 285,230 1,297,372 Capital outlay 4,107 4,107 4,107 270 Other objects 300 300 300 300 Non-capitalized equipment 94,109 94,109 133,935 (39,826) 131,008

Total 71,519,822 70.689,166 70,771,654 (82,488) 68,637,047

Special education programs Salaries 11,231,210 11,561,789 11,442,824 118,965 10,743,199 Employee benefits 2,925,430 3,097,332 2,670,659 426,673 2,568,006 Purchased services 87,145 127,145 142,971 (15,826) 150,185 Supplies and materials 84,856 84,856 184,983 (100,127) 403,428 Capital outlay 27,500 27,500 261 27,239 83,654 Other objects 1,110,000 1,008,000 845,697 162,303 Non-capitalized equipment 2,500 2,500 10,857 (8,357) 69.767

Total 15,468,641 15,909,122 15,298,252 610,870 14,018,239

Remedial and supplemental programs K-12 Salaries 512,279 778,865 736,934 41,931 1,028,171 Employee benefits 207,470 292,113 273,559 18,554 332,282 Purchased services 40,000 Supplies and materials 411,446 367,601 43,845 69,463 Non-capitalized equipment 13,319 (13,319) 52,323

Total 719,749 1,482,424 1,391,413 91,011 1,522,239

Interscholastic programs Salaries 583,628 583,628 519,794 63,834 499,949 Employee benefits 6,048 6,048 7,358 (1 ,310) 5,916 Purchased services 14,889 14,889 16,779 (1 ,890) 15,613 Supplies and materials 23,917 23,917 23,235 682 22,726 Other objects 1,900 1,900 1,520 380 995 Non-capitalized equipment 2,315

Total 630,382 630,382 568,686 61,696 547.514


- 44-





Summer school programs Salaries $ 240,000 $ 226,641 $ 226,108 $ 533 $ 210,201 Employee benefits 2,170 2,170 1,303 867 1,348 Supplies and materials 4,080 4,080 1,143 2,937 3,798

Total 246.250 232,891 228,554 4,337 215,347

Gifted programs Salaries 969,529 973,700 1,010,178 (36,478) 973,098 Employee benefits 179,350 179,350 181,052 (1 ,702) 171 ,541 Supplies and materials 15,300 15,300 7,232 8,068 10,660

Total 1,164,179 1,168,350 1,198.462 (30,112) 1,155,299

Bilingual programs Salaries 7,337,085 7,129,690 7,270,309 (140,619) 7,062,200 Em ployee benefits 1,552,933 1,182,184 1,253,829 (71,645) 1,279,899 Purchased services 20,000 20,000 20,932 (932) 11 ,673 Supplies and materials 313,461 320.906 235,586 85,320 372,353

Total 9.223.479 8,652,780 8,780,656 (127,876) 8.726,125

Truant's alternative and optional programs Other objects 7,532

Total 7,532

Special education programs K-12 - private tuition Other objects 706,144

Total 706.144

Total instruction 98,972,502 98.765.115 98,237,677 527.438 95,535,486

Support services

Pupils

Attendance and social work services Salaries 2,049,451 2,224,269 2,203,202 21,067 2,110,941 Employee benefits 321 ,362 320,058 286,677 33,381 295,612 Purchased services 1,020 1,020 1,062 (42) 742 Supplies and materials 4,080 4,080 3.954 126 1,779

Total 2.375,913 2,549,427 2.494.895 54,532 2,409,074


- 45-





Guidance services Salaries $ 364,666 $ 320,773 $ 371,349 $ (50,576) $ 356,847 Employee benefits 59,535 59,928 61,795 (1 ,867) 65.301

Total 424,201 380,701 433,144 (52.443) 422,148

Health services Salaries 1,329,289 1,335,583 1,302,369 33,214 1,354,643 Employee benefits 346,555 346,555 282,264 64,291 310,412 Purchased services 390,405 390,405 357,780 32,625 408,999 Supplies and materials 37,360 37,360 22,966 14,394 18,562 Capital outlay 13,000 13,000 13,000 1,834 Non-capitalized equipment 5,659 (5,659) 24,787

Total 2,116,609 2.122,903 1,971,038 151,865 2.119,237

Psychological services Salaries 1,265,796 1,138,971 1,216,133 (77,162) 1,024,520. Employee benefits 184,496 184,496 153,811 30,685 155,371 Purchased services 5,020 5,020 897 4,123 1,032 Supplies and materials 10,000 10,000 2,891 7,109 3,537 Capital outlay 1,000 1,000 1,000

Total 1,466,312 1,339,487 1,373,732 (34,245) 1,184,460

Speech pathology and audiology services Salaries 2,565,950 2,462,755 2,411,545 51,210 2,458,279 Employee benefits 381,434 381,434 280,963 100,471 340,761 Purchased services 101,428 101,428 107,971 (6,543) 76,008 Supplies and materials 12,000 12,000 21,223 (9,223) 15,799 Capital outlay 15,000 15,000 943 14,057 9,817 Non-capitalized equipment 7,282 (7,282) 4,965

Total 3,075,812 2,972,617 2,829,927 142,690 2,905,629

Total pupils 9,458,847 9,365,135 9,1 02,736 262,399 9,040,548

Instructional staff

Improvement of instructional services Salaries 504,310 543,108 522,514 20,594 629,907 Employee benefits 119,364 124,764 131,561 (6,797) 129,756 Purchased services 288,335 623,090 585,677 37,413 306,546 Supplies and materials 162,909 184,231 151 ,931 32,300 120,762 Capital outlay 1,460 1,460 1,460 Other objects 1,000 1,000 702 298 608 Non-capitalized equipment 854 (854) 6,912

Total 1,077,378 1.477,653 1,393,239 84,414 1,194.491


- 46-





Educational media services Salaries $ 2,598,098 $ 2,602,268 $ 2,570,824 $ 31,444 $ 2,514,518 Employee benefits 365,636 365,636 301,383 64,253 334,826 Purchased services 689,658 703,658 433,091 270,567 707,670 Supplies and materials 221,071 257,021 214,245 42,776 199,142 Capital outlay 216,759 216,759 7,979 208,780 434,111 Non-capitalized equipment 1,525,512 1.525,512 1,055,111 470,401 826,687

Total 5.616,734 5,670,854 4,582,633 1,088,221 5.016,954

Assessment and testing Salaries 25,000 25,000 36,222 (11,222) 34,564 Employee benefits 310 310 401 (91 ) 250 Purchased services 121,975 119,975 118,938 1,037 106,450 Supplies and materials 64,000 69,750 75,849 (6,099) 47,718

Total 211,285 215,035 231,410 (1 6,375) 188,982

Total instructional staff 6,905,397 7.363.542 6,207,282 1.156,260 6.400,427

General administration

Board of education services Salaries 426,416 426,416 457,172 (30,756) 178,495 Employee benefits 621,853 651,417 692,523 (41,106) 827,372 Purchased services 475,835 475,835 364,189 111,646 287,491 Supplies and materials 8,160 8,160 4,166 3,994 8,224 Other objects 15,000 15,000 2,858 12,142 2,863 Non-capitalized equipment 8,616

Total 1,547,264 1.576,828 1,520,908 55,920 1.313,061

Executive administration services Salaries 932,823 932,823 938,002 (5,179) 1,022,547 Employee benefits 171,578 162,578 168,059 (5,481 ) 130,868 Purchased services 23,970 23,970 13,839 10,131 17,874 Supplies and materials 58,956 58,956 12,646 46,310 49,725 Other objects 4,500 4,500 7,777 (3,277) 6,323 Non-capitalized equipment 4,500 4,500 11 1 4.389 169

Total 1,196,327 1,187,327 1.140,434 46,893 1,227,506


- 47-



WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2011 2012

ORIGINAL VARIANCE WITH 2011 BUDGET FINAL BUDGET ACTUAL FINAL BUDGET ACTUAL

Special area administration services Salaries $ 624,144 $ 634,644 $ 638,142 $ (3,498) $ 596,686 Employee benefits 108,305 110,251 116,561 (6,310) 117,617 Purchased services 4,000 4,000 Supplies and materials 1,000 1,000 1,000 Other objects 1,000 1,000 874 126 469

Total 734,449 750,895 755,577 (4,682) 714,772

Tort immunity services Purchased services 1,383,000 1,383,000 1,127,957 255,043 1,513,272 Other objects 5,000 5,000 5,000 5.019

Total 1,388,000 1,388,000 1,127,957 260,043 1,518,291

Total general administration 4,866,040 4.903,050 4.544,876 358,174 4,773,630

School administration

Office of the principal services Salaries 5,163,837 5,148,299 5,141,882 6,417 5,244,373 Employee benefits 1,197,943 1,172,249 1,010,984 161 ,265 1,056,417 Purchased services 270,747 270,747 195,327 75,420 191 ,563 Supplies and materials 18,734 18,734 8,668 10,066 11,830 Capital outlay 160,720 160,720 112,625 48,095 112,564 Other objects 20,000 20,000 5,015 14,985 5,346 Non-capitalized equipment 1,500 1,500 286 1,214 1,965

Total 6,833,481 6,792,249 6,474,787 317,462 6.624,058

Total school adm inistration 6,833,481 6,792,249 6,474,787 317,462 6.624,058

Business

Fiscal services Salaries 684,146 683,656 692,547 (8,891 ) 723,239 Employee benefits 136,570 135,617 128,424 7,193 119,981 Purchased services 138,030 138,030 63,038 74,992 49,810 Supplies and materials 91 ,051 91 ,051 97,940 (6,889) 147,637 Capital outlay 5,000 5,000 1,499 3,501 2,500 Other objects 2,000 2,000 2,305 (305) 2,304

Total 1.056,797 1,055,354 985,753 69,601 1,045.471


- 48-





Operation and maintenance of plant services Non-capitalized equipment ~ ~ 24.411 ~ ~ 24,411 ~

Total 24,411 24,411

Pupil transportation services Salaries 21,711 20,461 26,870 (6,409) 23,779 Purchased services 264 5,764 5,764 325

Total 21.975 26.225 26.870 (645) 24.104

Food services Salaries 974,696 990,978 940,507 50,471 960,339 Employee benefits 486,691 486,098 439,280 46,818 424,624 Purchased services 55,600 55,600 60,998 (5,398) 56,876 Supplies and materials 1,509,415 1,509,415 1,765,618 (256,203) 1,610,390 Capital outlay 130,000 130,000 93,522 36,478 8,270 Other objects 1,000 1,000 652 348 820 Non-capitalized equipment 26.000 26.000 13.509 12.491 8,415

Total 3,183,402 3.199.091 3,314,086 (114,995) 3.069,734

Internal services Salaries 254,657 248,951 270,306 (21 ,355) 257,303 Employee benefits 71,994 71 ,994 70,338 1,656 65,945 Purchased services 169,065 169,065 17,511 151,554 32,880 Supplies and materials 84,864 84,864 62,542 22,322 62,415 Capital outlay 72,900 72,900 117,664 (44,764) 115,326 Non-capitalized equipment 5.000 5.000 5,000 2.529

Total 658,480 652.774 538,361 114,413 536,398

Total business 4,920,654 4,957,855 4,865,070 92,785 4.675,707

Central

Planning, research, development and evaluation services Salaries 237 (237) 2,279 Purchased services 10.000 10,000 7,410 2,590 633

Total 10,000 10,000 7,647 2,353 2,912


- 49-





Information services Salaries $ 150,458 $ 150,458 $ 153,656 $ (3,198) $ 150,380 Employee benefits 18,481 18,481 16,606 1,875 15,515 Purchased services 80,453 80,453 17,998 62,455 21,165 Supplies and materials 10,200 10,200 576 9,624 2,265 Other objects 1,000 1,000 690 310 295 Non-capitalized equipment 7,000 7.000 7,000 427

Total 267,592 267,592 189,526 78,066 190,047

Staff services Salaries 508,099 508,009 476,843 31 ,166 472,069 Employee benefits 93,805 93,805 95,785 (1,980) 82,206 Purchased services 98,736 98,736 49,542 49,194 55,262 Supplies and materials 22,440 22,440 9,133 13,307 20,385 Capital outlay 15,000 15,000 15,000 Other objects 4,000 4,000 2,713 1,287 794

Total 742,080 741,990 634,016 107,974 630,716

Data processing services Salaries 168,452 168,452 169,106 (654) 177,187 Employee benefits 23,987 23,987 23,562 425 21 ,985 Purchased services 130,560 130,560 74,371 56,189 58,495 Supplies and materials 56,100 56,100 1,400 54,700 52,041 Non-capitalized equipment 1,156 (1 ,156)

Total 379.099 379,099 269,595 109,504 309,708

Total central 1,398,771 1,398,681 1,100,784 297,897 1,133,383

Other supporting services Purchased services 223,801 332,728 244,660 88,068 312,786

Total 223,801 332,728 244,660 88,068 312.786

Total support services 34,606,991 35,113,240 32,540,195 2,573,045 32,960,539

Community services

Salaries 149,983 218,988 199,217 19,771 182,202 Employee benefits 24,852 23,425 16,865 6,560 32,840 Purchased services 71,930 71,330 28,145 43,185 46,558 Supplies and materials 21,196 116,047 157,573 (41 ,526) 43,499 Non-capitalized equipment 750 (750) 29,033

Total community services 267,961 429,790 402,550 27,240 334,132


- 50 -


SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL FOR THE YEAR ENDED JUNE 30,2012



Payments to other districts and governmental units

Other payments to in-state governmental units Other objects ~ $ $ ~ ~ 180,466

Total 180,466

Payments for special education programs -tuition Other objects 260,349

Total 260,349

Other payments to in-state govt. units -transfers Purchased services 265,200 265,200 270.863 (5,663) 272,078

Total 265,200 265,200 270,863 (5,663) 272,078

Total payments to other districts and governmental units 265,200 265,200 270,863 (5,663) 712,893

Provision for contingencies 558,015

Total expenditures 134.670.669 134,573,345 131,451,285 3.122,060 129,543,050

Net change in fund balance ~ (3,620,036) ~ (2,251,360) 1,218,010 ~ 3,4691370 (17,782)

Fund balance, beginning of year 38,288,164 38,305,946

Fund balance, end of year ~ 39,506,174 ~ 38,288,164


- 51 -

COMMUNITY CONSOLIDATED SCHOOL DISTRICT 15 OPERATIONS AND MAINTENANCE FUND




Revenues

Local sources

General levy $ 10,357,361 $ 10,123,975 $ 10,134,536 $ 10,561 $ 10,067,371 Corporate personal property

replacement taxes 751,075 691 ,390 786,582 95,192 764,236 Investment income 51,969 7,414 8,548 1,134 19,939 Rentals 60,000 60,000 98,634 38,634 86,138 Impact fees from municipal or

county governments 1,103 1,103 (1,103) Proceed's from vendor

contracts 148,215 148,215 Other local fees 25,000 25,000 (25,000) Other 205.000 205,000 60,496 (144,504) 141,606

Total local sources 11,451,508 11.113.882 11,237,011 123,129 11,079,290

State sources

Other restricted revenue from state sources 157,636 123,361 (34,275)

Total state sources 157,636 123,361 (34.275)

Federal sources

Other restricted revenue from federal sources 17,090 17,090

Total federal sources 17.090 17.090

Total revenues 11,451,508 11,288,608 11,377,462 88,854 11,079,290

Expenditures

Support services

Business

Facilities acquisition and construction service Purchased services 1,873 (1.873) 6,731

Total 1.873 (1,873) 6,731


- 52 -

COMMUNITY CONSOLIDATED SCHOOL DISTRICT 15 OPERATIONS AND MAINTENANCE FUND




Operation and maintenance of plant services Salaries $ 4,764,449 $ 4,921,450 $ 4,979,391 $ (57,941) $ 4,619,337 Employee benefits 1,020,806 928,056 982,470 (54,414) 925,957 Purchased services 1,681,141 1,681,141 1,622,118 59,023 1,708,690 Supplies and materials 3,426,715 3,110,517 3,582,649 (472,132) 3,173,296 Capital outlay 391 ,900 391 ,900 231,670 160,230 259,257 Non-capitalized equipment 15.500 15,500 580 14,920 740

Total 11,300,511 11,048,564 11,398,878 (350,314) 10,687,277

Total business 11 ,300,511 11,048,564 11.400,751 (352,187) 10,694,008

Total support services 11,300,511 11.048,564 11,400,751 (352,187) 10,694,008

Provision for contingencies 54,520 54,520 54.520

Total expenditures 11 ,355,031 11,103,084 11 ,400.751 (297,667) 10,694,008

Excess (deficiency) of revenues over expenditures 96,477 185.524 (23,289) (208,813) 385,282

Other financing sources (uses)

Transfer to capital projects fund (100,000) (316,200) (316,200)

Total other financing sources (uses) (100,000) (316,200) (316.200)

Net change in fund balance ~ (3,523) § (130,676) (339,489) ~ (208,813) 385,282

Fund balance, beginning of year 6.786,937 6,401 ,655

Fund balance, end of year ~ 6,447,448 ~ 6,7861937


- 53-

COMMUNITY CONSOLIDATED SCHOOL DISTRICT 15 TRANSPORTATION FUND



Revenues

Local sources

General levy $ Regular transportation fees

from pupils or parents (in state)

Regular transportation fees from private sources (in state)

Regular transportation fees from other sources (out of state)

Special education -transportation fees from other LEAs (in state)

Investment income Other

Total local sources

State sources

Transportation -regular/vocational

Transportation - special education

Transportation - other

Total state sources

Total revenues

Expenditures

Support Services

Business

Pupil transportation services Salaries Employee benefits Purchased services Supplies and materials Capital outlay Other objects Non-capitalized equipment

Total

Total business

2012 ORIGINAL BUDGET FINAL BUDGET

3,737,766 $

125,000

45,000

5,000

48,506 25,000

3,986,272

2,004,351

2,706,907 76.000

4,787,258

8,773,530

5,218,403 2,051,296

349,337 1,180,730

545,438 38,245

9,383.449

9,383.449

3,651 ,179 $

125,000

45,000

5,000

8,911 25,000

3,860,090

2,409,961

2,802,556 76,000

5.288,517

9,148,607

5,000,022 1,864,911

409,337 1,180,730

545,438 38,245

9,038,683

9,038,683

ACTUAL VARIANCE WITH FINAL BUDGET

3,654,966 $ 3,787 $

128,714

60,042

16,920 9,854

21 ,257

3.891.753

2,409,961

2,802,556 75.416

5.287,933

9,179,686

4,727,001 1,860,887

374,698 1,198,317

514,048

5,925

8,680,876

8,680,876

3,714

15,042

(5,000)

16,920 943

(3.743)

31 ,663

(584)

(584)

31,079

273,021 4,024

34,639 (17,587) 31,390 38,245 (5,925)

357,807

357,807


- 54-

2011 ACTUAL

3,670,329

118,937

34,727

19,453 19,474 39,513

3,902.433

2,465,447

2,183,512

4,648,959

8.551,392

4,830,851 1,742,698

493,302 1,155,433 1,151,639

146,109

9,520,032

9,520,032

COMMUNITY CONSOLIDATED SCHOOL DISTRICT 15 TRANSPORTATION FUND



201 2 ORIGINAL VARIANCE WITH 2011 BUDGET FINAL BUDGET ACTUAL FINAL BUDGET ACTUAL

Total support services ~ 9,383,449 ~ 9,038,683 ~ 8,680,876 ~ 357,807 ~ 9,520,032

Total expenditures 9,383,449 9.038,683 8,680,876 357.807 9,520,032

Net change in fund balance ~ (609,919) ~ 109,924 498,810 ~ 388,886 (968,640)

Fund balance, beginning of year 6,314,771 7,283,411



- 55-

COMMUNITY CONSOLIDATED SCHOOL DISTRICT 15 MUNICIPAL RETIREMENT/SOCIAL SECURITY FUND




Revenues

Local sources

General levy $ 2,157,573 $ 2,108,813 $ 2,110,851 $ 2,038 $ 2,077,441 Social security/medicare only

levy 2,846,375 2,777,546 2,781,100 3,554 2,742,684 Corporate personal property

replacement taxes 79,078 105,000 105,000 103,246 Investment income 21 ,607 3,295 4,045 750 7,582

Total local sources 5,104,633 4,994,654 5,000,996 6,342 4,930,953

Total revenues 5,104,633 4,994,654 5,000,996 6,342 4,930,953

Expenditures

Instruction

,Regular programs 1,047,990 1,051 ,796 1,013,675 38,121 947,442 Special education

programs 688,482 687,982 663,480 24,502 582,535 Remedial and

supplemental programs K-12 7,428 7,428 12,761 (5,333) 15,037

Interscholastic programs 8,463 8,463 8,701 (238) 9,705 Summer school programs 15,388 15,388 21 ,667 (6,279) 17,807 Gifted programs 14,058 14,058 13,734 324 13,299 Bilingual programs 259,~34 260,505 238,623 21 ,882 21 2,777

Total instruction 2,041 ,243 2,045,620 1,972,641 72,979 1,798,602

Support services

Pupils

Attendance and social work services 29,718 29,718 29,191 527 28,526

Guidance services 11,733 11,733 11,308 425 10,164 Health services 244,828 244,828 233,361 11,467 216,362 Psychological services 18,354 18,354 20,199 (1 ,845) 17,309 Speech pathology and

audiology services 37,206 37,206 32,236 4,970 33,284

Total pupils 341,839 341,839 326,295 15,544 305,645


- 56-




Instructional staff

Improvement of instructional staff

Educational media services

Assessment and testing

Total instructional staff


Board of education services

Executive administration services

Special area administration services

Total general administration


Office of the principal services

Total school administration

Business

Fiscal services Operations and

maintenance of plant services

Pupil transportation services

Food services Internal services

Total business

Central

Planning, research, development and evaluation services

Information services Staff services Data processing services

Total central

Total support services

$

2012 ORIGINAL BUDGET FINAL BUDGET

13,757 $

152,221 363

166,341

39,110

83,254

162.494

281,851

281 ,851

86,930

879,332

960,580 170,492

50,346

2,147,680

29,104 62,035 33,303

124.442

3,224,647

13,757 $

152,221 363

166,341

39,110

83,254

40,130

162.494

281,851

281 ,851

86,930

884,332

965,580 171,326

50,346

29,104 62,035 33,303

124.442

3,235.481

ACTUAL VARIANCE WITH FINAL BUDGET

2011 ACTUAL

14,380 $ (623) $ 15,092

145,653 538

160,571

22,481

81 ,311

40,932

144,724

274,800

274,800

99,397

949,362

898,047 167,050 50,556

2,164.412

350 28,929 81 ,905 30,751

141 ,935

3,212,737

6,568 (175)

5,770

16,629

1,943

(802)

17,770

7,051

7,051

(12,467)

(65,030)

137,740 321

153,153

16,288

81,444

44,060

141,792

256,852

256,852

83,050

832,316

67,533 872,826 4,276 161,647

______ ~(~2~10~) ______ 4~5~,9~4=0

(5,898) 1,995,779

(350) 175

(19 ,870) 2,552

(17.493)

22,744

281 26,825 78,847 30,811

136,764

2,989,985


- 57-




Community services

Total expenditures

Net change in fund balance

Fund balance, beginning of year

Fund balance, end of year

§

~

ORIGINAL BUDGET

13,614

5,279,504

(174,871)

2012

FINAL BUDGET

§ 13,614 §

5,294,715

§ (300,061 )

§

ACTUAL

26,063

5,211,441

(210,445)

2,839,185

2,628,740

VARIANCE WITH FINAL BUDGET

2011 ACTUAL

§ =-_ ..... (-'-'12=.4..:....4=9) § 23,396

__ -->8""'3""".2::.:..7.-:.4 4,811,983

$ ",,=====8=9£,6=1=6 118,970

2,720,215

§ 2,839.185


- 58-

COMMUNITY CONSOLIDATED SCHOOL DISTRICT 15 NOTES TO REQUIRED SUPPLEMENTARY INFORMATION


STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY

Budgetary Data , The budgeted amounts for the Governmental Funds are adopted on the modified accrual basis, which is consistent with accounting principles generally accepted in the United States of America.

The Board of Education follows these procedures in establishing the budgetary data reflected in the general purpose financial statements:

1. The Administration submits to the Board of Education a proposed operating budget for the fiscal year commencing July 1. The operating budget includes proposed expenditures and the means of financing 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 an resolution. By the last Tuesday in December, a tax levy resolution is filed with the county clerk to obtain tax revenues.

4. Management is authorized to transfer budget amounts, provided funds are transferred between the same function and object codes. The Board of Education is authorized to transfer up to a legal level of 10% 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, after following the public hearing process mandated by law.

5. Formal budgetary integration is employed as a management control device during the year for all governmental funds.

6. All budget appropriations lapse at the end of the fiscal year.

The Board of Education amended the budget on June 13, 2012.

Excess of Expenditures over Budget For the year ended June 30, 2012, expenditures exceeded budget in the Operations & Maintenance fund by $297,667. This excess was funded by available fund balance.

See Auditor's Report

- 59-

COMMUNITY CONSOLIDATED SCHOOL DISTRICT 15 DEBT SERVICE FUND




Revenues

Local sources

General levy $ 3,451 ,371 $ 4,266,590 $ 4,375,814 $ 109,224 $ 4,666,760 Investment income 46,556 39,598 32,259 (7,339) 15,770

Total local sources 3,497,927 4,306,188 4,408,073 101,885 4,682,530

Total revenues 3,497,927 4,306,188 4,408,073 101,885 4,682,530

Expenditures

Debt services

Payments on long term debt Interest on long term debt 391,350 391,350 390,850 500 390,850 Principal payments on

long term debt 4.495.000 4,495,000 4,495,000 4,495,000

Total 4,886,350 4,886,350 4,885,850 500 4,885,850 Other debt service Other objects 350 (350) 350

Total 350 (350) 350

Total debt services 4,886,350 4,886,350 4,886,200 150 4.886,200

Total expenditures 4.886,350 4,886,350 4,886,200 150 4,886,200

Net change in fund balance ~ (1,388,423) ~ (580,162) (478,127) ~ 102,035 (203,670)

Fund balance, beginning of year 5,296,560 5,500.230

Fund balance, end of year ~ 4,8181433 ~ 5,296,560

- 60-

COMMUNITY CONSOLIDATED SCHOOL DISTRICT 15 CAPITAL PROJECTS FUND


WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30,2011


Revenues

Local sources

Investment income $ 1,650 $ 242 $ 355 $ 113 $ 2,075 Impact fees from municipal or

county governments 20,000 28,500 34,447 5,947 33,871 Payments of surplus monies

from TIF districts 1.350,000 1,218,805 1.218.989 184 1,349,912

Total local sources 1,371,650 1.247.547 1,253,791 6,244 1,385,858

Total revenues 1,371 ,650 1,247,547 1.253.791 6,244 1,385,858

Expenditures

Support services

Business

Facilities acquisition and construction service Purchased services 2,152,602 2,026,494 2,056,881 (30,387) 348,253 Capital outlay 216,480 (216,480) 448,374 Non-capitalized equipment 1.876 1,876

Total 2.152,602 2.028,370 2.273.361 (244,991 ) 796,627

Total business 2,1 52,602 2,028,370 2,273,361 (244,991 ) 796,627

Total support services 2,1 52,602 2,028,370 2,273,361 (244,991 ) 796,627

Total expenditures 2,152,602 2,028,370 2,273,361 (244.991 ) 796,627

Excess (deficiency) of revenues over expenditures (780,952) (780,823) (1 .019,570) (238,747) 589.231


Transfer to capital projects fund 100,000 316.200 316,200

Total other financing sources (uses) 100,000 316,200 316.200

Net change in fund balance ~ (680,952) ~ (464,623) (703,370) ~ (238,747) 589,231

Fund balance, beginning of year 787,098 197.867

Fund balance, end of year § 83,728 ~ 787,098

- 61 -

COMMUNITY CONSOLIDATED SCHOOL DISTRICT 15 FIRE PREVENTION AND LIFE SAFETY FUND




Revenues

Local sources

Investment income ~ 7,442 ~ 560 ~ 446 ~ (114) ~ 1,711

Total local sources 7,442 560 446 (114) 1,711

Total revenues 7,442 560 446 (114) 1,711

Expenditures

Support services

Business

Facilities acquisition and construction service Capital outlay 595,634

Total 595.634

Total business 595,634

Total support services 595,634

Total expenditures 595,634

Net change in fund balance ~ 7,442 ~ 560 446 ~ (114) (593,923)

Fund balance, beginning of year 18,128 612,051

Fund balance, end of year ~ 18,574 ~ 18,128

- 62-


COMBINING BALANCE SHEET AS OF JUNE 30, 2012

TORT IMMUNITY EDUCATIONAL AND JUDGMENT WORKING CASH

ACCOUNTS ACCOUNTS ACCOUNTS TOTAL

Assets

Cash $ 45,880,464 $ 285,398 $ 109,994 $ 46,275,856 Receivables (net allowance for uncollectibles):

Property taxes 42,664,525 704,469 43,368,994 Intergovernmental 5,379,244 5,379,244 Tuition 284,148 284,148

Inventory 450,592 450,592 Prepaid items 1,090,477 1,090,477

Total assets ~ 95,749,450 ~ 989,867 ~ 1091994 ~ 96,849,311

Liabilities and fund balance

Accounts payable $ 2,171,881 $ 8,222 $ $ 2,180,103 Salaries and wages payable 11,782,561 11,782,561 Payroll deductions payable 10,965 10,965 Deferred revenue 42,666,334 703.174 43.369,508

Total liabilities 56,631,741 711,396 57,343,137

Fund balance

Nonspendable 450,592 450,592 Restricted 278,471 278,471 Assigned 4,211,671 4,211,671 Unassigned 34,455,446 109,994 34,565,440

Total fund balance 39,117,709 278,471 109,994 39,506.174

Total liabilities and fund balance ~ 95,749,450 ~ 989,867 ~ 109,994 ~ 96,849,311

- 63-


COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2012

TORT IMMUNITY EDUCATIONAL AND JUDGMENT WORKING CASH

ACCOUNTS ACCOUNTS ACCOUNTS TOTAL

Revenues Property taxes $ 84,766,712 $ 1,169,639 $ $ 85,936,351 Corporate personal property

replacement taxes 691,390 691,390 State aid 31,905,195 31,905,195 Federal aid 10,771,738 10,771,738 Investment income 61,117 1,206 161 62,484 Other 3,292,422 9,715 3,302,137

Total revenues 131,488,574 1.180,560 161 132,669,295

Expenditures Current:

Instruction: Regular programs 52,087,169 52,087,169 Special programs 16,689,404 16,689,404 Other instructional programs 10,776,358 10,776,358 State retirement contributions 18,684,485 18,684,485

Support Services: Pupils 9,101,793 9,101,793 Instructional staff 6,199,303 6,199,303 General administration 3,416,919 1,127,957 4,544,876 School administration 6,362,162 6,362,162 Business 4,625,515 4,625,515 Transportation 26,870 26,870 Central 1,100,784 1,100,784 Other supporting services 244,660 244,660

Community services 402,550 402,550 Payments to other districts and gov't units 270,863 270,863

Capital outlay 334,493 334,493

Total expenditures 130,323,328 1.127.957 131.451.285 Excess (deficiency) of revenues over

expenditures 1,165,246 52,603 161 1.218,010

Net change in fund balance 1,165,246 52,603 161 1,218,010

Fund balance, beginning of year 37.952.463 225,868 109,833 38,288,164

Fund balance, end of year $ 39,117,709 ~ 278,471 ~ 109,994 ~ 39,506,174

- 64-

COMMUNITY CONSOLIDATED SCHOOL DISTRICT 15 EDUCATIONAL ACCOUNTS




Revenues

Local sources

General levy $ 86,004,083 $ 83,808,946 $ 83,921 ,559 $ 112,613 $ 82,773,543 Special education levy 861,003 844,361 845,153 792 1,223,436 Corporate personal property

replacement taxes 851 ,389 691 ,390 691 ,390 853,269 Regular tuition from pupils or

parents (in state) 38,000 38,000 47,543 9,543 35,890 Special education - tuition

from other LEA's (in state) 775,000 775,000 291,981 (483,019) 957,024 Investment income 167,266 50,665 61,117 10,452 100,850 Sales to pupils - lunch 1,100,000 1,100,000 1,046,336 (53,664) 1,075,830 Sales to pupils - breakfast 16,000 16,000 21 ,369 5,369 19,219 Sales to pupils - a la carte 475,000 435,000 541,165 106,165 435,196 Sales to adults 23,000 23,000 25,189 2,189 23,726 Other food service 19,000 19,000 17,706 (1,294) 23,960 Admissions - athletic 60,000 60,000 78,974 18,974 71,096 Admissions - other 5,000 5,000 (5,000) Rentals - regular textbook 925,000 900,000 855,508 (44,492) 913,526 Rentals 3,750 3,750 9,061 5,311 6,945 Contributions and donations

from private sources 4,500 4,500 Refund of prior years'

expenditures 5,000 5,000 7,911 2,911 1,085 Proceed's from vendor

contracts 93,541 93,541 2,241 Payment from other LEA's 117,511 117,511 144,964 Other local fees 27,500 27,500 26,337 (1,163) 26,744 Other 450,000 450.000 107,790 (342.210) 300,365

Total local sources 91,805,991 89,252,612 88.811 ,641 (440,971) 88.988,909

State sources

General state aid 7,186,079 7,342,293 7,342,173 (120) 7,023,603 Special education - private

facility tuition 162,711 262,751 262,751 167,743 Special education -

extraordinary 1,998,159 1,742,997 1,742,997 2,089,773 Special education - personnel 2,329,949 2,392,367 2,392,367 2,288,752 Special education -

orphanage - individual 312,373 281,028 143,325 (137,703) 487,305 Special education -

orphanage - summer 4,518 12,695 12,695 4,559 Special education - summer

school 19,968 25,047 25,047 20,150 Bilingual education -

downstate - TPI 627,370 970,000 719,229 (250,771 ) 973,861 State free lunch & breakfast 50,000 50,000 71 ,734 21 ,734 78,114

- 65 -





Other restricted revenue from state sources $ 488,201 $ 488,201 $ 508,392 $ 20,191 $ 67,872

On behalf payment to TRS from the state 17.871.274 17,871,274 18,684,485 813,21 1 16,764,663

Total state sources 31,050,602 31,438,653 31,905,195 466,542 29,966,395

Federal sources

National school lunch program 1,400,000 1,600,000 1,808,661 208,661 1,690,884

Special milk program 700 700 1,151 451 1,012 School breakfast program 180,000 250,000 312,638 62,638 279,805 Summer food service

admin/program 11,000 11,000 20,800 9,800 7,416 Fresh fruits & vegetables 30,000 31,500 39,673 8,173 Title I - Low income 1,216,704 2,206,276 2,182,667 (23,609) 1,392,592 Title IV - Safe & drug free

schools - formula 23,943 3,610 3,610 6,234 Federal - special education -

preschool flow-through 107,567 107,443 109,984 2,541 103,821 Federal - special education -

IDEA - flow-through/low incident 2,727,735 2,855,495 2,582,046 (273,449) 2,842,882

Federal - special education -IDEA - room & board 57,727 57,727 56,580

Title I - low income 341,484 355,412 13,928 247,440 IDEA - part b - preschool 33,111 IDEA - part b - flow-through 121,851 121,851 956,941 Other ARRA funds - XI 111,895 222,334 222,334 424,667 Title III - English language

acquisition 460,122 526,578 478,992 (47,586) 339,665 Title II - Teacher quality 278,940 397,638 234,748 (162,890) 238,595 Medicaid matching funds -

administrative outreach 300,000 550,000 348,678 (201,322) 586,574 Medicaid matching funds -

fee-for-service program 400,000 1,362,000 1,571,145 209,145 945,200 Other restricted revenue from

federal sources 20,042 319.621 319,621 246.435

Total federal sources 7,268,648 10.462,448 10,771,738 309.290 10,399,854

Total revenues 130.125,241 131,153,713 131.488,574 334,861 129.355,158

- 66 -





Expenditures

Instruction

Regular programs Salaries $ 44,550,470 $ 45,056,033 $ 44,369,968 $ 686,065 $ 42,916,779 Employee benefits 7,911 ,771 6,571,929 6,783,098 (211,169) 7,492,143 On-behalf payments to

TRS from the state 17,871,274 17,871,274 18,684,485 (813,211 ) 16,764,663 Purchased services 40,417 40,417 34,101 6,316 34,512 Supplies and materials 1,047,374 1,050,997 765,767 285,230 1,297,372 Capital outlay 4,107 4,107 4,107 270 Other objects 300 300 300 300 Non-capitalized equipment 94,109 94,109 133,935 (39.826) 131,008

Total 71,519,822 70,689,166 70,771,654 (82,488) 68.637.047

Special education programs Salaries 11,231,210 11,561,789 11,442,824 118,965 10,743,199 Employee benefits 2,925,430 3,097,332 2,670,659 426,673 2,568,006 Purchased services 87,145 127,145 142,971 (15,826) 150,185 Supplies and materials 84,856 84,856 184,983 (100,127) 403,428 Capital outlay 27,500 27,500 261 27,239 83,654 Other objects 1,110,000 1,008,000 845,697 162,303 Non-capitalized equipment 2,500 2,500 10,857 (8,357) 69,767

Total 15.468,641 15,909,122 15.298.252 610,870 14,018,239

Remedial and supplemental programs K - 12 Salaries 512,279 778,865 736,934 41,931 1,028,171 Employee benefits 207,470 292,113 273,559 18,554 332,282 Purchased services 40,000 Supplies and materials 411,446 367,601 43,845 69.463 Non-capitalized equipment 13,319 (13,319) 52,323

Total 719,749 1,482,424 1,391,413 91,011 1,522,239

Interscholastic programs Salaries 583,628 583,628 519,794 63,834 499,949 Employee benefits 6,048 6,048 7,358 (1,310) 5,916 Purchased services 14,889 14,889 16,779 (1,890) 15,613 Supplies and materials 23,917 23,917 23,235 682 22,726 Other objects 1,900 1,900 1,520 380 995 Non-capitalized equipment 2.315

Total 630,382 630,382 568,686 61.696 547,514

- 67-





Summer school programs Salaries $ 240,000 $ 226,641 $ 226,108 $ 533 $ 210,201 Employee benefits 2,170 2,170 1,303 867 1,348 Supplies and materials 4,080 4,080 1,143 2,937 3,798

Total 246,250 232,891 228,554 4.337 215,347

Gifted programs Salaries 969,529 973,700 1,010,178 (36,476) 973,098 Employee benefits 179,350 179,350 181 ,052 (1 ,702) 171,541 Supplies and materials 15,300 15,300 7.232 8,068 10,660

Total 1,164,179 1,168,350 1,198,462 {30,112) 1,155,299

Bilingual programs Salaries 7,337,085 7,129,690 7,270,309 (140,619) 7,062,200 Employee benefits 1,552,933 1,182,184 1,253,829 (71,645) 1,279,899 Purchased services 20,000 20,000 20,932 (932) 11,673 Supplies and materials 313,461 320,906 235.586 85,320 372,353

Total 9,223,479 8,652,780 8,780,656 (127.876) 8,726,125

Truant's alternative and optional programs Other objects 7,532

Total 7,532

Special education programs K -12 - private tuition Other objects 706,144

Total 706,144

Total instruction 98,972,502 98,765,115 98.237,677 527,438 95,535,486

Support services

Pupils

Attendance and social work services Salaries 2,049,451 2,224,269 2,203,202 21,067 2,110,941 Employee benefits 321,362 320,058 286,677 33,381 295,612 Purchased services 1,020 1,020 1,062 (42) 742 Supplies and materials 4,080 4,080 3,954 126 1.779

Total 2,375,913 2,549,427 2,494,895 54.532 2,409,074

- 68-





Guidance services Salaries $ 364,666 $ 320,773 $ 371 ,349 $ (50,576) $ 356,847 Employee benefits 59,535 59.928 61,795 (1,867) 65,301

Total 424,201 380,701 433,144 (52,443) 422,148

Health services Salaries 1,329,289 1,335,583 1,302,369 33,214 1,354,643 Employee benefits 346,555 346,555 282,264 64,291 310,412 Purchased services 390,405 390,405 357,780 32,625 408,999 Supplies and materials 37,360 37,360 22,966 14,394 18,562 Capital outlay 13,000 13,000 13,000 1,834 Non-capitalized equipment 5,659 (5,659) 24,787

Total 2,116,609 2,122,903 1,971,038 151 ,865 2,119,237

Psychological services Salaries 1,265,796 1,138,971 1,216,133 (77,162) 1,024,520 Employee benefits 184,496 184,496 153,811 30,685 155,371 Purchased services 5,020 5,020 897 4,123 1,032 Supplies and materials 10,000 10,000 2,891 7,109 3,537 Capital outlay 1,000 1,000 1,000

Total 1,466,312 1,339,487 1,373,732 (34,245) 1.184,460

Speech pathology and audiology services Salaries 2,565,950 2,462,755 2,411,545 51,210 2,458,279 Employee benefits 381,434 381,434 280,963 100,471 340,761 Purchased services 101,428 101,428 107,971 (6,543) 76,008 Supplies and materials 12,000 12,000 21,223 (9,223) 15,799 Capital outlay 15,000 15,000 943 14,057 9,817 Non-capitalized equipment 7,282 (7,282) 4,965

Total 3,075,812 2,972,617 2,829,927 142,690 2,905,629

Total pupils 9,458,847 9,365,135 9,102,736 262,399 9,040,548

Instructional staff

Improvement of instructional services Salaries 504,310 543,108 522,514 20,594 629,907 Employee benefits 119,364 124,764 131,561 (6,797) 129,756 Purchased services 288,335 623,090 585,677 37,413 306,546 Supplies and materials 162,909 184,231 151,931 32,300 120,762 Capital outlay 1,460 1,460 1,460 Other objects 1,000 1,000 702 298 608 Non-capitalized equipment 854 (854) 6,912

Total 1,077,378 1,477,653 1.393,239 84,414 1,194,491

- 69-





Educational media services Salaries $ 2,598,098 $ 2,602,268 $ 2,570,824 $ 31,444 $ 2,514,518 Employee benefits 365,636 365,636 301,383 64,253 334,826 Purchased services 689,658 703,658 433,091 270,567 707,670 Supplies and materials 221,071 257,021 214,245 42,776 199,142 Capital outlay 216,759 216,759 7,979 208,780 434,111 Non-capitalized equipment 1,525,512 1.525.512 1,055,111 470,401 826.687

Total 5.616,734 5,670,854 4,582,633 1,088.221 5,016,954

Assessment and testing Salaries 25,000 25,000 36,222 (11,222) 34,564 Employee benefits 310 310 401 (91 ) 250 Purchased services 121,975 119,975 118,938 1,037 106,450 Supplies and materials 64,000 69.750 75,849 (6,099) 47.718

Total 211,285 215,035 231,410 (16,375) 188,982

Total instructional staff 6,905,397 7.363,542 6,207,282 1,156,260 6,400,427


Board of education services Salaries 426,416 426,416 457,172 (30,756) 178,495 Employee benefits 621,853 651,417 692,523 (41,106) 827,372 Purchased services 475,835 475,835 364,189 111,646 287,491 Supplies and materials 8,160 8,160 4,166 3,994 8,224 Other objects 15,000 15,000 2,858 12,142 2,863 Non-capitalized equipment 8,616

Total 1,547,264 1.576,828 1.520,908 55,920 1.313,061

Executive administration services Salaries 932,823 932,823 938,002 (5,179) 1,022,547 Employee benefits 171,578 162,578 168,059 (5,481 ) 130,868 Purchased services 23,970 23,970 13,839 10,131 17,874 Supplies and materials 58,956 58,956 12,646 46,310 49,725 Other objects 4,500 4,500 7,777 (3,277) 6,323 Non-capitalized equipment 4,500 4.500 111 4,389 169

Total 1,196,327 1,187,327 1,140,434 46,893 1,227,506

- 70-





Special area administration services Salaries $ 624,144 $ 634,644 $ 638,142 $ (3,498) $ 596,686 Employee benefits 108,305 110,251 116,561 (6,310) 117,617 Purchased services 4,000 4,000 Supplies and materials 1,000 1,000 1,000 Other objects 1,000 1,000 874 126 469

Total 734,449 750,895 755,577 (4,682) 714,772

Total general administration 3,478,040 3,515,050 3.416,919 98,131 3.255.339


Office of the principal services Salaries 5,163,837 5,148,299 5,141,882 6,417 5,244,373 Employee benefits 1,197,943 1,172,249 1,010,984 161,265 1,056,417 Purchased services 270,747 270,747 195,327 75,420 191,563 Supplies and materials 18,734 18,734 8,668 10,066 11,830 Capital outlay 160,720 160,720 112,625 48,095 112,564 Other objects 20,000 20,000 5,015 14,985 5,346 Non-capitalized equipment 1.500 1,500 286 1,214 1,965

Total 6,833,481 6,792,249 6.474,787 317,462 6,624.058

Total school administration 6,833.481 6.792,249 6,474,787 317,462 6,624,058

Business

Fiscal services Salaries 684,146 683,656 692,547 (8,891 ) 723,239 Employee benefits 136,570 135,617 128,424 7,193 119,981 Purchased services 138,030 138,030 63,038 74,992 49,810 Supplies and materials 91,051 91,051 97,940 (6,889) 147,637 Capital outlay 5,000 5,000 1,499 3,501 2,500 Other objects 2,000 2,000 2,305 (305) 2,304

Total 1,056,797 1,055,354 985.753 69,601 1,045,471

Operation and maintenance of plant services Non-capitalized equipment 24,411 24,411

Total 24,411 24,411

- 71 -

COMMUNITY CONSOUDATED SCHOOL DISTRICT 15 EDUCATIONAL ACCOUNTS




Pupil transportation services Salaries $ 21,711 $ 20,461 $ 26,870 $ (6,409) $ 23,779 Purchased services 264 5,764 5,764 325

Total 21,975 26,225 26,870 (645) 24.104

Food services Salaries 974,696 990,978 940,507 50,471 960,339 Employee benefits 486,691 486,098 439,280 46,818 424,624 Purchased services 55,600 55,600 60,998 (5,398) 56,876 Supplies and materials 1,509,415 1,509,415 1,765,618 (256,203) 1,610,390 Capital outlay 130,000 130,000 93,522 36,478 8,270 Other objects 1,000 1,000 652 348 820 Non-capitalized equipment 26,000 26,000 13,509 12,491 8,415

Total 3,183,402 3.199.091 3,314,086 (114,995) 3.069,734

Internal services Salaries 254,657 248,951 270,306 (21 ,355) 257,303 Employee benefits 71,994 71,994 70,338 1,656 65,945 Purchased services 169,065 169,065 17,511 151,554 32,880 Supplies and materials 84,864 84,864 62,542 22,322 62,415 Capital outlay 72,900 72,900 117,664 (44,764) 115,326 Non-capitalized equipment 5.000 5,000 5,000 2,529

Total 658,480 652.774 538,361 114,413 536,398

Total business 4.920.654 4,957,855 4,865,070 92,785 4,675,707

Central

Planning, research, development and evaluation services Salaries 237 (237) 2,279 Purchased services 10,000 10,000 7,410 2.590 633

Total 10,000 10,000 7,647 2,353 2.912

Information services Salaries 150,458 150,458 153,656 (3,198) 150,380 Employee benefits 18,481 18,481 16,606 1,875 15,515 Purchased services 80,453 80,453 17,998 62,455 21 ,165 Supplies and materials 10,200 10,200 576 9,624 2,265 Other objects 1,000 1,000 690 310 295 Non-capitalized equipment 7.000 7,000 7,000 427

Total 267,592 267,592 189,526 78,066 190,047

- 72-



WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30. 2011


Staff services Salaries $ 508,099 $ 508,009 $ 476,843 $ 31 ,166 $ 472,069 Employee benefits 93,805 93,805 95,785 (1,980) 82,206 Purchased services 98,736 98,736 49,542 49,194 55,262 Supplies and materials 22,440 22,440 9,133 13,307 20,385 Capital outlay 15,000 15,000 15,000 Other objects 4,000 4,000 2,713 1,287 794

Total 742,080 741,990 634,016 107,974 630,716

Data processing services Salaries 168,452 168,452 169,106 (654) 177,187 Employee benefits 23,987 23,987 23,562 425 21,985 Purchased services 130,560 130,560 74,371 56,189 58,495 Supplies and materials 56,100 56,100 1,400 54,700 52,041 Non-capitalized equipment 1,156 (1,156)

Total 379,099 379,099 269,595 109,504 309,708

Total central 1,398,771 1.398,681 1,100,784 297,897 1,133,383

Other supporting services Purchased services 223.801 332,728 244,660 88,068 312,786

Total 223,801 332.728 244,660 88,068 312,786

Total support services 33.218,991 33,725,240 31,412,238 2,313,002 31,442,248

Community services

Salaries 149,983 218,988 199,217 19,771 182,202 Employee benefits 24,852 23,425 16,865 6,560 32,840 Purchased services 71,930 71,330 28,145 43,185 46,558 Supplies and materials 21,196 116,047 157,573 (41,526) 43,499 Non-capitalized equipment 750 (750) 29,033

Total community services 267.961 429,790 402,550 27,240 334,132

Payments to other districts and governmental units

Other payments to in-state governmental units Other objects 180,466

Total 180,466

- 73-





Payments for special education programs -tuition Other objects ~ $ ~ ~ ~ 260,349

Total 260,349

Other payments to in-state govt. units -transfers Purchased services 265,200 265,200 270,863 (5.663) 272,078

Total 265,200 265,200 270,863 (5,663) 272,078

Total payments to other districts and governmental units 265,200 265,200 270,863 (5.663) 712,893

Provision for contingencies 558,015

Total expenditures 133,282,669 133,185,345 130.323.328 2,862,017 128,024,759

Net change in fund balance (3,157,428) (2,031,632) 1,165,246 3,196,878 1,330,399


Transfer among funds (250,000)

Total other financing sources (uses) (250,000)

Net change in fund balance ~ (3,407,428) ~ (2,031,632) 1,165,246 ~ 3,196,878 1,330,399

Fund balance, beginning of year 37,952,463 36.622.064


- 74-

COMMUNITY CONSOLIDATED SCHOOL DISTRICT 15 TORT IMMUNITY AND JUDGMENT ACCOUNTS




Revenues

Local sources

Tort immunity levy $ 921,780 $ 1,166,635 $ 1,169,639 $ 3,004 $ 126,087 Investment income 2,740 1,514 1,206 (308) 4,413 Refund of prior years'

expenditures 5,427 5,427 39,304 Other 4.288 4,288

Total local sources 924,520 1,168,149 1,180,560 12,411 169,804

Total revenues 924,520 1,168,149 1.180.560 12,411 169,804

Expend itu res

Support Services


Workers' compensation or workers' occupational disease act payments Purchased services 900,000 900,000 542,031 357,969 877,254

Total 900,000 900,000 542.031 357,969 877,254

Unemployment insurance payments Purchased services 90,000 90,000 74,029 15,971 105,355

Total 90,000 90,000 74,029 15,971 105,355

Insurance payments (regular or self-insurance Purchased services 382,500 382,500 511,897 (129,397) 520,069

Total 382,500 382,500 511,897 (129,397) 520,069

Risk management and claims services payments Purchased services 10,500 10,500 10,500 10,594 Other objects 5,000 5,000 5,000 5,019

Total 15,500 15,500 15,500 15,613

Total general administration 1,388,000 1,388,000 1,127.957 260,043 1,518,291

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COMMUNITY CONSOLIDATED SCHOOL DISTRICT 15 TORT IMMUNITY AND JUDGMENT ACCOUNTS



Total expenditures

Excess (deficiency) of revenues over expenditures


Transfer among funds

Total other financing sources (uses)

Net change in fund balance



ORIGINAL BUDGET

2012

FINAL BUDGET ACTUAL VARIANCE WITH FINAL BUDGET

2011 ACTUAL

$ 1,388,000 $ 1,388,000 $ 1,127,957 $ 260,043 $ 1,518,291

(463.480) _ _ (>..=2,-,-,19=,8=5<...:..1)

250,000

250,000

$ (213.480) &$ ==(!,;;;2=19~,8~5=-1')

$

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52.603 272.454

52,603 ~$ ====2~72::=.4~5~4

225,868

278.471 $

(1 ,348,487)

(1,348,487)

1,574,355

225,868

COMMUNITY CONSOLIDATED SCHOOL DISTRICT 15 WORKING CASH ACCOUNTS



Revenues

Local sources

Investment income

Total local sources

Total revenues

Expenditures

Total expenditures

Excess (deficiency) of revenues over expenditures



$

2012 ORIGINAL BUDGET FINAL BUDGET ACTUAL

VARIANCE WITH FINAL BUDGET

2011 ACTUAL

872 $

872

872

872

161 ",,-$ ___ ...",3=8 ",,-$ __ ----:3:::..:::0=6 123 $

123 ____ 1.:..,:;6:...:,.1 38 306

123 ______ ~1=6~1 38 306

123 161 38 306

109,833 109.527

$ 109,994 $ 109,833

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COMMUNITY CONSOLIDATED SCHOOL DISTRICT 15 AGENCY FUNDS

SCHEDULE OF CHANGES IN ASSETS AND LIABILITIES FOR THE YEAR ENDED JUNE 30, 2012

BALANCE BALANCE JUNE 30, 2011 ADDITIONS REDUCTIONS JUNE 30, 2012

Assets

Cash and investments $ 870,499 $ 1,166,109 $ 1,079,420 $ 957,187

Liabilities

Due to student groups Schools

Jane Addams $ 10,557 $ 15,750 $ 11,531 $ 14,776 Central Road 10,870 37,153 35,719 12,304 Winston Churchill 24,367 26,560 31,424 19,503 Kimball Hill 3,087 9,413 9,616 2,884 Hunting Ridge 15,834 25,541 27,766 13,609 Thomas Jefferson 10,920 28,559 21,251 18,228 Marion Jordan 13,907 25,124 30,626 8,405 Lake Louise 19,479 13,054 12,757 19,776 Lincoln 8,813 23,691 28,368 4,136 Stuart R. Paddock 9,900 47,861 45,835 11,926 Pleasant Hill 12,411 24,639 31,692 5,358 Plum Grove Jr. High 15,856 96,296 98,577 13,575 Gray M. Sanborn 8,805 21 ,329 16,987 13,147 Carl Sandburg Jr. High 42,145 24,826 25,482 41,489 W. R. Sundling Jr. High 23,248 78,290 79,177 22,361 Virginia Lake 10,598 16,316 13,404 13,510 F. C. Whiteley 13,834 12,372 6,742 19,464 Willow Bend 12,117 23,907 18,586 17,438 Winston Park Jr. High 29,832 35,168 43,715 21,285 Special Olympics 52,600 22,524 30,076 Transportation 2,544 3,231 3,985 1,790 The Learning Academy 2,353 3,952 2,135 4,170

Total Schools 301,477 645,632 617,899 329,210

General

Interest on Savings 58,224 792 59,016 Alan E. Hoover Memorial

Student Health Fund 41,809 1,169 2,254 40,724

CARE program 458,217 512,933 457,521 513,629 Other 10,772 5.582 1,746 14,608

Total general 569,022 520,477 461,521 627,977

Total liabilities $ 870,499 $ 1,166,109 $ 1,079,420 ,,;;,.$ _~..;;.9.;:...57:..!-, 1.;.,;8;.,;",7

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COMMUNITY CONSOLIDATED SCHOOL DISTRICT 15 GENERAL OBLIGATION BONDS PAYABLE

SCHEDULE OF GENERAL LONG-TERM DEBT FOR THE YEAR ENDED JUNE 30, 2012

INTEREST BALANCE YEAR ENDED JUNE 30, RATE PRINCIPAL INTEREST TOTAL

WORKING CASH AND LIMITED TAX CAPITAL APPRECIATION BONDS, DATED AUGUST 9,2001

2013 N/A $ 4,495,000 $ $ 4,495,000 2014 N/A 4,495,000 4,495,000 2015 N/A 4,495,000 4,495,000 2016 N/A 4,495,000 4,495,000 2017 N/A 4,495,000 4,495,000 2018 N/A 4,495,000 4,495,000 2019 N/A 4,495,000 4,495,000 2020 N/A 4,495,000 4,495,000 2021 N/A 4,495,000 4,495,000

TOTAL 40,455,000 40,455,000

WORKING CASH AND REFUNDING BONDS, DATED MAY 16, 2006 2013 N/A 390,850 390,850 2014 N/A 390,850 390,850 2015 N/A 390,850 390,850 2016 N/A 390,850 390,850 2017 N/A 390,850 390,850 2018 N/A 390,850 390,850 2019 N/A 390,850 390,850 2020 N/A 390,850 390,850 2021 N/A 390,850 390,850 2022 4.10% 3,010,000 329,145 3,339,145 2023 4.15% 3,140,000 202,285 3,342,285 2024 4.20% 3,265,000 68,565 3,333,565

TOTAL 9,415,000 4,117,645 13,532,645

TOTAL ALL BONDS PAYABLE $ 49,870,000 $ 4,117,645 $ 53,987,645

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COMMUNITY CONSOLIDATED SCHOOL DISTRICT 15

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