EAST ST. LOUIS SCHOOL DISTRICT 189

Transcription

1 EAST ST. LOUIS SCHOOL DISTRICT 189 FINANCIAL STATEMENTS AS OF AND FOR THE YEAR ENDED JUNE 30, 2014 AND INDEPENDENT AUDITORS' REPORT

2 TABLE OF CONTENTS AS OF AND FOR THE YEAR ENDED JUNE 30, 2014 Page(s) Independent Auditors' Report 1-3 Required Supplementary Information Management's Discussion and Analysis (MD&A) - Unaudited 4-11 Basic Financial Statements Government-Wide Financial Statements Statement of Net Position 12 Statement of Activities 13 Fund Financial Statements Balance Sheet - Governmental Funds Reconciliation of the Governmental Funds - Balance Sheet to the Statement of Net Position 16 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 19 Statement of Fiduciary Assets and Liabilities - Agency Fund 20 Notes to Basic Financial Statements Required Supplementary Information Historical Pension Information Illinois Municipal Retirement Fund - Schedule of Employer's Contributions and Analysis of Funding Progress 40

3 TABLE OF CONTENTS AS OF AND FOR THE YEAR ENDED JUNE 30, 2014 Required Supplementary Information - (Continued) General and Major Special Revenue Funds - Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget to Actual Page(s) General Fund - Non-GAAP Budgetary Basis Operations and Maintenance Fund 52 Transportation Fund 53 Municipal Retirement/Social Security Fund Notes to Required Supplementary Information 57 Supplementary Information Major Debt Service and Major Capital Projects Funds - Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget to Actual Debt Service Fund Capital Projects Fund Fire Prevention and Life Safety Fund 62 General Fund - Combining Balance Sheet 63 General Fund - Combining Schedule of Revenues, Expenditures and Changes in Fund Balances 64 General Fund Accounts - Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget to Actual Educational Accounts - Non-GAAP Budgetary Basis Tort Immunity and Judgment Accounts Working Cash Accounts 78

4 ~AKER TILLY INDEPENDENT AUDITORS' REPORT Baker Tilly Virchow Krause, LLP 1301 W 22nd Sr, See 400 Oak Brook, IL rel fax bakenilly.com To the Board of Education East St. Louis School District 189 East St. Louis, IL Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of East St. Louis School District 189, as of and for the year ended June 30, 2014, and the related notes to the financial statements, which collectively comprise East St. Louis School District 189's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control over financial reporting relevant to East St. Louis School District 189's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of East St. Louis School District 189's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of East St. Louis School District 189, as of June 30, 2014 and the respective changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. ~ tll'ldtr.t Genlmemberol BAKER TILLY INTE RNATIONAL An Affirma<ive Action Equal Opponunity Employer

5 To the Board of Education East St. Louis School District 189 Emphasis of Matter As discussed in Note 2, East St. Louis School District 189 adopted the provisions of GASB Statement No. 65, Items Previously Reported as Assets and Liabilities, effective July 1, Our opinions are not modified with respect to this matter. Other Matters Required Supplementary Information 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, economic, 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. Supplementary Information Our audit for the year ended June 30, 2014 was conducted for the purpose of forming opinions on the financial statements that collectively comprise East St. Louis School District 189's basic financial statements. The supplementary information for the year ended June 30, 2014 as listed in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements. 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 information has been subjected to the auditing procedures applied in the audit of the basic financial statements for the year ended June 30, 2014, 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 supplementary information is fairly stated in all material respects, in relation to the basic financial statements as a whole for the year ended June 30, We also previously audited, in accordance with auditing standards generally accepted in the United States of America, the basic financial statements of East St. Louis School District 189 as of and for the year ended June 30, 2013 (not presented herein), and have issued our report thereon dated December 10, 2013, which contained unmodified opinions on the respective financial statements of the the governmental activities, each major fund, and the aggregate remaining fund information. The supplementary information for the year ended June 30, 2013 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 2013 financial statements. The information has been subjected to the auditing procedures applied in the audit of the 2013 basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare those financial statements or to those financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated in all material respects in relation to the basic financial statements as a whole for the year ended June 30,

6 To the Board of Education East St. Louis School District 189 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 12, 2014 on our consideration of East St. Louis School District 189'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 internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering East St. Louis School District 189's internal control over financial reporting and compliance. Oak Brook, Illinois December 12,

7 East St. Louis School District 189 Management's Discussion and Analysis (Unaudited) As of and for the Year Ended June 30, 2014 The discussion and analysis of East St. Louis School District 189 s (the "District") financial performance provides an overall review of the District s financial activities as of and for the year ended June 30, The management of the District encourages readers to consider the information presented herein in conjunction with the basic financial statements to enhance their understanding of the District s financial performance. All amounts, unless otherwise indicated, are expressed in millions of dollars. Certain comparative information 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 position increased by $13.4. This represents a 9% increase from General revenues accounted for $59.7 in revenue or 57% of all revenues. Program specific revenues in the form of charges for services and fees and grants accounted for $44.7 or 43% of total revenues of $ The District had $91.0 in expenses related to government activities. However, only $44.7 of these expenses were offset by program specific charges and grants. The District continued to pay down its long-term debt retiring $2.1 million in fiscal The 9 Months Average Daily Attendance of 5,227 for FY 2014 is a decrease of 248 from FY General State Aid accounted for a large portion of the District's revenue, contributing $46.9. Property taxes contributed $8.9 of the District's revenue. Instruction made up the largest portion of all expenditures with $49.0 of 55% of all expenditures. Pupil and instructional staff service accounted for $7.5 or 8.2% of all expenditures. Administration and business services accounted for $14.1 or 15.5% of all expenditures. Overview of the Financial Statements This discussion and analysis is 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 information 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

8 East St. Louis School District 189 Management's Discussion and Analysis (Unaudited) As of and for the Year Ended June 30, 2014 The statement of net position presents information on all of the District s assets/deferred outflows of resources and liabilities/deferred inflows of resources, with the difference between them reported as net position. Over time, increases or decreases in net position 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 position changed during the fiscal year being reported. All changes in net position 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. 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, IMRF/Social Security Fund, Debt Service Fund, Capital Projects Fund, and Fire Prevention and 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

9 East St. Louis School District 189 Management's Discussion and Analysis (Unaudited) As of and for the Year Ended June 30, 2014 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

10 East St. Louis School District 189 Management's Discussion and Analysis (Unaudited) As of and for the Year Ended June 30, 2014 Government-Wide Financial Analysis The District s combined net position was higher on June 30, 2014, than it was the year before, increasing 9% to $ Table 1 Condensed Statements of Net Position (in millions of dollars) 2013* 2014 Assets: Current and other assets $ 46.6 $ 53.1 Deferred charges Capital Assets Total assets Total deferred outflows of resources Liabilities: Current liabilities Long-term liabilities Total liabilities Total deferred inflows of resources Net position: Net investment in capital assets Restricted Unrestricted Total net position $ $ * Prior year information has not been updated for the District's implementation of GASB Statement No. 65 in fiscal year Revenues in the governmental activities of the District of $104.4 exceeded expenses by $13.4. This was attributable primarily to the district cutting expenditures to offset the decrease in revenues in the current year and a one-time $3 million State appropriation

11 East St. Louis School District 189 Management's Discussion and Analysis (Unaudited) As of and for the Year Ended June 30, 2014 Table 2 Changes in Net Position (in millions of dollars) Revenues: Program revenues: Charges for services $ 0.8 $ 1.5 Operating grants & contributions Capital 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 position $ 11.1 $ 13.4 General State Aid accounted for the largest portion of the District s revenues, contributing 46%. The remainder of revenues came from property taxes, state, federal grants and other sources. The total cost of all the District s programs was $91.0, mainly related to instructing and caring for the students and student transportation at 67%

12 East St. Louis School District 189 Management's Discussion and Analysis (Unaudited) As of and for the Year Ended June 30, 2014 Financial Analysis of the District s Funds The District s Governmental Funds balance increased from $27.8 to $41.4. Fund balances increased by $13.6. This increase was primarily attributable to the District cutting expenditures to offset the decrease in revenues in the current year and a one-time $3 million State appropriation. With a revenue to fund balance ratio of 35.8%, the District scored 3.6 points out of 4 points possible from the Illinois State Board of Education's financial profile summary

13 East St. Louis School District 189 Management's Discussion and Analysis (Unaudited) As of and for the Year Ended June 30, 2014 The District attained appropriate year-end fund balance to provide 125 days of cash on hand, but short of the 180 days of cash on hand recommended by the Illinois State Board of Education. General Fund Budgetary Highlights On June 13, 2014, the District amended the annual budget to reflect known changes regarding revenues and expenditures to be realized and incurred by the end of the fiscal year. The District received $46.9 in General State Aid. Overall General Fund Revenues were over budget by $0.6. This is attributable to actual local revenue sources and state revenue sources being higher than expected. Overall General Fund Expenditures were under budget by $8.1. This is attributable to the District reducing personnel and related benefits. The General Fund balance increased by $5.6 from Capital Assets and Debt Administration Capital assets By the end of 2014, the District had compiled a total investment of $240.3 ($169.2 net of accumulated depreciation) in a broad range of capital assets including buildings, land and equipment. Total depreciation expense for the year was $5.4. More detailed information about capital assets can be found in Note 4 of the basic financial statements. Table 3 Capital Assets (net of depreciation) (in millions of dollars) Land $ 0.8 $ 0.8 Land improvements Construction in progress Buildings Equipment Total $ $

14 East St. Louis School District 189 Management's Discussion and Analysis (Unaudited) As of and for the Year Ended June 30, 2014 Long-term debt The District retired $1.7 in bonds in Capital leases and other were reduced by $0.5. At the end of fiscal 2014, the District had a debt margin of $1.5. More detailed information on long-term debt can be found in Note 5 of the basic financial statements. Table 4 Outstanding Long-Term Debt (in millions of dollars) General Obligation Bonds $ 13.0 $ 11.9 Alternate Revenue Source Bonds Lease Purchase Agreement and Other Total $ 51.2 $ 48.7 Factors Bearing on the District s Future At the time these financial statements were prepared and audited, the District was aware of the following circumstance that will significantly affect financial operations in the future: The District anticipates that State Revenue Sources - General State Aid will continue to be prorated which will negatively impact the District. 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: Nick Mance East St. Louis School District State Street East St. Louis, IL

15 STATEMENT OF NET POSITION AS OF JUNE 30, 2014 GOVERNMENTAL ACTIVITIES Assets Cash and investments $ 34,162,786 Receivables (net of allowance for uncollectibles): Property taxes 8,169,054 Replacement taxes 545,217 Intergovernmental 7,217,619 Accounts 58,804 Due from joint agreements 2,689,360 Prepaid items 240,646 Capital assets: Land 815,300 Depreciable buildings, property and equipment, net 168,407,411 Total assets 222,306,197 Deferred outflows of resources Deferred charge on refunding 207,157 Total deferred outflows of resources 207,157 Liabilities Accounts payable 2,281,024 Accrued salaries and payroll withholdings 4,562,704 Compensated absences - current 287,917 Interest payable 285,621 Long-term liabilities: Other long-term liabilities - due within one year 2,219,505 Other long-term liabilities - due after one year 46,434,569 Total liabilities 56,071,340 Deferred inflows of resources Property taxes levied for a future period 4,508,457 Total deferred inflows of resources 4,508,457 Net position Net investment in capital assets 131,414,494 Restricted for: Tort immunity 1,885,823 Retirement benefits 1,536,165 Debt service 1,617,864 Capital projects 717,996 Unrestricted 24,761,215 Total net position $ 161,933,557 See Notes to Basic Financial Statements

16 STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2014 FUNCTIONS/PROGRAMS EXPENSES CHARGES FOR SERVICES PROGRAM REVENUE OPERATING GRANTS AND CONTRIBUTIONS CAPITAL GRANTS AND CONTRIBUTIONS NET (EXPENSES) REVENUE AND CHANGES IN NET POSITION GOVERNMENTAL ACTIVITIES Governmental activities Instruction: Regular programs $ 24,760,762 $ 624,801 $ 6,778,015 $ - $ (17,357,946) Special programs 13,265,719-12,861,332 - (404,387) Other instructional programs 2,152, , ,127 - (1,684,584) State retirement contributions 8,752,043-8,752, Support Services: Pupils 3,908,677-1,228,806 - (2,679,871) Instructional staff 3,587,682-3,111,459 - (476,223) General administration 5,038, (5,038,711) School administration 4,761, (4,761,692) Business 4,307, ,316 3,906,562 - (257,640) Transportation 3,387,663-2,273,422 - (1,114,241) Operations and maintenance 11,309, ,435-2,505,612 (8,318,997) Central 1,252, (1,252,572) Other supporting services 1,599,001-1,588,700 - (10,301) Community services 372, (372,083) Payments to other districts and gov't units - excluding special education 21, (21,728) Interest and fees 2,522, (2,522,320) Total governmental activities $ 90,999,337 $ 1,471,963 $ 40,748,466 $ 2,505,612 (46,273,296) General revenues: Taxes: Real estate taxes, levied for general purposes 1,612,969 Real estate taxes, levied for specific purposes 5,843,787 Real estate taxes, levied for debt service 1,491,101 Personal property replacement taxes 3,211,842 State aid-formula grants 46,944,355 Investment income 113,277 Miscellaneous 469,120 Total general revenues 59,686,451 Change in net position 13,413,155 Net position, beginning of year 148,520,402 Net position, end of year $ 161,933,557 See Notes to Basic Financial Statements

17 GOVERNMENTAL FUNDS BALANCE SHEET AS OF JUNE 30, 2014 WITH COMPARATIVE TOTALS AS OF JUNE 30, 2013 GENERAL FUND OPERATIONS AND MAINTENANCE TRANSPORTATION FUND FUND MUNICIPAL RETIREMENT/SOCIAL SECURITY FUND Assets Cash and investments $ 23,079,237 $ 1,813,720 $ 1,607,233 $ 1,000,247 Receivables (net allowance for uncollectibles): Property taxes 4,803, , ,786 1,427,641 Replacement taxes 545, Intergovernmental 7,217, Accounts 58, Due from joint agreements 2,689, Due from other funds Prepaid items 240, Restricted cash Total assets $ 38,634,696 $ 2,190,684 $ 1,758,019 $ 2,427,888 Liabilities, deferred inflows of resources, and fund balance Liabilities Accounts payable $ 1,449,476 $ 150,299 $ 498,373 $ - Accrued salaries and payroll withholdings 4,438,827 31,820 (7,154) 99,701 Compensated absences - current 283, ,115 Retainage payable Due to other funds Deferred revenue Total liabilities 6,172, , , ,816 Deferred inflows of resources Property taxes levied for a future period 2,651, ,045 83, ,907 Unavailable state and federal aid receivable 685, Total deferred inflows of resources 3,336, ,045 83, ,907 Fund balance Nonspendable 2,930, Restricted 3,299, ,536,165 Assigned - 1,800,520 1,183,581 - Unassigned 22,896, Total fund balance 29,125,866 1,800,520 1,183,581 1,536,165 Total liabilities, deferred inflows of resources, and fund balance $ 38,634,696 $ 2,190,684 $ 1,758,019 $ 2,427,888 See Notes to Basic Financial Statements

18 DEBT SERVICE FUND CAPITAL PROJECTS FUND FIRE PREVENTION AND LIFE SAFETY FUND TOTAL $ 5,047,655 $ 914,081 $ 700,613 $ 34,162,786 $ 25,605,654 1,372,152-37,698 8,169,054 8,994, , , ,217,619 8,344, ,804 28, ,689,360 2,737, ,599, , , , ,585 $ 7,095,599 $ 914,081 $ 738,311 $ 53,759,278 $ 51,215,952 $ - $ 182,876 $ - $ 2,281,024 $ 3,923, (490) 4,562,704 6,540, , , ,182, ,599, ,318, ,876 (490) 7,131,645 23,421, ,283-20,805 4,508, , ,283-20,805 5,193, , ,605, ,142 1,903, ,996 7,457,184 5,533,554 3,759, ,205-7,474, , ,896,322 21,237,012 6,338, , ,996 41,433,649 27,794,659 $ 7,095,599 $ 914,081 $ 738,311 $ 53,759,278 $ 51,215,

19 RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION AS OF JUNE 30, 2014 Total fund balances - governmental funds $ 41,433,649 Amounts reported for governmental activities in the Statement of Net Position are different because: Net capital assets used in governmental activities and included in the Statement of Net Position do not require the expenditure of financial resources and, therefore, are not reported in the Governmental Funds Balance Sheet. 169,222,711 Certain revenues receivable by the District and recognized in the Statement of Net Position do not provide current financial resources and are included as deferred inflows of resources in the Governmental Funds Balance Sheet, as follows: 685,527 Deferred charges on refunding and long-term liabilities applicable to the District's governmental activities do not provide current financial resources or are not due and payable in the current period, and accordingly, are not reported in the District funds. Both are reported in the Statement of Net Position. Balances at June 30, 2014 are: General obligation bonds $ (11,930,000) Alternate revenue bonds (28,200,000) Unamortized bond premium (276,891) Deferred amount on refunding 207,157 Workers compensation claims payable (1,413,715) Capital leases (1,107,391) Compensated absences (5,726,077) (48,446,917) Interest on long-term liabilities accrued in the Statement of Net Position will not be paid with current financial resources and, therefore, is not recognized in the Governmental Funds Balance Sheet. (285,621) Interest paid prior to its due date, which is after the fiscal year end, is considered to be a prepaid in the governmental funds. However it is considered to be an expense of the current period in the governmental activities statements and is not an asset on the Statement of Net Position.: $ (675,792) (675,792) Net position of governmental activities $ 161,933,557 See Notes to Basic Financial Statements

20 GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2014 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2013 OPERATIONS AND GENERAL FUND MAINTENANCE FUND TRANSPORTATION FUND MUNICIPAL RETIREMENT/SOCIAL SECURITY FUND Revenues Property taxes $ 5,064,648 $ 413,563 $ 165,423 $ 1,771,762 Corporate personal property replacement taxes 2,818,816 68, ,000 State aid 56,179,546 2,010,000 4,123, ,907 Federal aid 20,300, ,035 Investment income 56, Gain or loss on sale of investments 16, Other 1,393,722 20,981 4,816 - Total revenues 85,830,321 2,512,570 4,293,661 2,438,704 Expenditures Current: Instruction: Regular programs 22,105, ,696 Special programs 13,208, ,654 Other instructional programs 2,058, ,802 State retirement contributions 8,752, Support Services: Pupils 3,748, ,615 Instructional staff 3,201, ,246 General administration 5,361, ,342 School administration 4,463, ,571 Business 4,154, ,717 Transportation 10,737-3,292,418 84,508 Operations and maintenance 5,880,595 1,483, ,798 Central 1,221, ,253 Other supporting services 1,592, ,931 Community services 351, ,719 Payments to other districts and gov't units 21, Debt Service: Principal Interest and other Capital outlay 380,868 29, Total expenditures 76,511,793 1,512,161 3,292,418 2,115,852 Excess (deficiency) of revenues over expenditures 9,318,528 1,000,409 1,001, ,852 Other financing sources (uses) Transfer from other funds Transfer to other funds (3,759,039) Total other financing sources (uses) (3,759,039) Net change in fund balance 5,559,489 1,000,409 1,001, ,852 Fund balance, beginning of year 23,566, , ,338 1,213,313 Fund balance, end of year $ 29,125,866 $ 1,800,520 $ 1,183,581 $ 1,536,165 See Notes to Basic Financial Statements

21 DEBT SERVICE FUND CAPITAL PROJECTS FUND FIRE PREVENTION AND LIFE SAFETY FUND TOTAL $ 1,491,101 $ - $ 41,360 $ 8,947,857 $ 9,518, ,211,842 3,174,947 3,164,602 4,511,736-70,095,213 78,319, ,536,662 18,276, ,715-85,719 76,442-10,599-27,558 (139,178) - 250,400-1,669, ,079 4,655,704 4,802,450 41, ,574, ,316, ,448,929 24,310, ,414,661 14,350, ,123,321 2,360, ,752,043 8,227, ,938,092 5,007, ,267,539 4,450, ,411,606 7,667, ,802,969 6,188, ,302,331 4,366, ,387,663 3,511,192-2,050-7,939,532 7,954, ,252,572 1,322, ,599,001 1,166, , , ,728 63,922 2,141, ,141,040 2,063,343 2,035, ,035,438 2,086,452-2,909, ,953 3,734,968 12,360,833 4,176,478 2,911, ,953 90,935, ,829, ,226 1,891,325 (374,593) 13,638,990 2,487,104 3,759, ,759, (3,759,039) - 3,759, ,238,265 1,891,325 (374,593) 13,638,990 2,487,104 2,100,051 (1,160,120) 1,092,589 27,794,659 25,307,555 $ 6,338,316 $ 731,205 $ 717,996 $ 41,433,649 $ 27,794,

22 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, 2014 Net change in fund balances - total governmental funds Amounts reported for governmental activities in the Statement of Activities are different because: $ 13,638,990 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 net capital outlay. (2,457,459) Certain revenues included in the Statement of Activities do not provide current financial resources and, therefore, are included as deferred inflows of resources in the fund statements: State and federal aid (162,278) The issuance 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 position. This is the amount of current year principal repayments. 2,141,040 Governmental funds report the effects of 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. (513,269) 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: Interest payable $ 26,387 Compensated absences 370,783 Workers compensation claims payable 368, ,131 Change in net position of governmental activities $ 13,413,155 See Notes to Basic Financial Statements

23 AGENCY FUND STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES AS OF JUNE 30, 2014 AGENCY STUDENT ACTIVITY FUND Assets Cash and investments $ 82,320 Liabilities Due to student groups $ 82,320 See Notes to Basic Financial Statements

24 NOTES TO BASIC FINANCIAL STATEMENTS AS OF AND FOR THE YEAR ENDED JUNE 30, 2014 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES East St. Louis School District 189 (the District ) operates as a public school system governed by a sevenmember board. Along with a five member Financial Oversight Panel appointed by the Illinois State Board of Education, which has final authority on all financial related matters at the District. The District is organized under the School Code of the State of Illinois, as amended. The accounting policies of the District conform to the accounting principles generally accepted in the United States of America, as applicable to local governmental units of this type. The following is a summary of the more significant accounting policies of the District: Reporting Entity This report includes all of the funds of the District. The reporting entity for the District consists of the primary government and its component units. Component units are legally separate organizations for which the primary government is financially accountable or other organizations for which the nature and significance of their relationship with the primary government are such that their exclusion would cause the reporting entity's financial statements to be misleading. The District has not identified any organizations that meet this criteria. Basis of Presentation Government-wide Financial Statements The government-wide financial statements (i.e., the statement of net position 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. 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 selfbalancing set of accounts that comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, 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

25 NOTES TO BASIC FINANCIAL STATEMENTS AS OF AND FOR THE YEAR ENDED JUNE 30, 2014 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (CONTINUED) 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 of the 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 if they are collected within 60 days after 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. The fund uses three departmental accounts to account for its operating fund activities, the Educational Account, the Tort Immunity and Judgment Account, and the Working Cash Account. This fund is primarily used for most of the instructional and administrative aspects of the District's operations. Revenues consist largely of state and federal governmental aid and local property taxes. 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 of local property taxes and general state aid. Transportation Fund - accounts for all revenue and expenditures made for student transportation. Revenue is derived primarily from local property taxes and state reimbursement grants. 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 and general state aid. 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

26 NOTES TO BASIC FINANCIAL STATEMENTS AS OF AND FOR THE YEAR ENDED JUNE 30, 2014 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (CONTINUED) Capital Projects Fund - accounts for construction projects and renovations financed through bond issuances and capital improvement grants. 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 unearned 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, deferred outflows of resources, liabilities, and deferred inflows of resources and disclosure of contingent assets, deferred outflows of resources, liabilities, and deferred inflows of resources 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. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net Position or Equity Deposits and Investments State statutes authorize the District to invest in obligations of the 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

27 NOTES TO BASIC FINANCIAL STATEMENTS AS OF AND FOR THE YEAR ENDED JUNE 30, 2014 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (CONTINUED) Receivables and Payables Transactions between funds that are representative of lending/borrowing 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 position. Receivables are expected to be collected within one year. Unearned Revenue Governmental funds report unearned revenue in connection with resources that have been received, but not yet earned. Property Tax Revenues The District must file its tax levy resolution by the last Tuesday in December of each year. The District's 2013 levy resolution was approved during the October 22, 2013 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 following is a summary of the tax rate ceilings the District is subject to per $100 of assessed valuation: Educational , Special Education , Operations and Maintenance , Transportation , Fire Prevention and Safety , Working Cash , and Lease/Purchase/Rental Property taxes are collected by the County Collector/Treasurer, who remits to the District its share of collections. Taxes levied in one year become due and payable in two equal installments: the first due on June 1 and the second due on September 1. Property taxes are normally collected by the District within 60 days of the respective installment dates. The 2013 property tax levy is recognized as a receivable in fiscal 2014, net of estimated uncollectible amounts approximating 14.44% and less amounts already received. The District considers that the first installment of the 2013 levy is to be used to finance operations in fiscal The District has determined that the second installment of the 2013 levy is to be used to finance operations in fiscal 2015 and has included the corresponding receivable as a deferred inflow of resources. 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 items in both the government-wide and fund financial statements. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased

28 NOTES TO BASIC FINANCIAL STATEMENTS AS OF AND FOR THE YEAR ENDED JUNE 30, 2014 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (CONTINUED) Capital Assets Capital assets, which include land, land improvements, buildings and improvements, furniture and equipment, and transportation equipment are reported in the government-wide financial statements. Prior to July 1, 2012 capital assets were defined by the District as assets with an initial individual cost of more than $500 and an estimated useful life of greater than 1 year. The District amended their capital asset policy in fiscal year 2013 to be applied prospectively beginning July 1, 2012 as follows: capital assets are defined as assets with an estimated useful life of greater than 1 year and an initial individual cost of more than $3,000 or an initial individual cost of more than $500 if purchased with federal funds. 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 Years Buildings and improvements 50 Land improvements 20 Furniture and equipment Transportation equipment 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. Deferred Outflows of Resources A deferred outflow of resources represents a consumption of net position that applies to a future period and will not be recognized as an outflow of resources (expense/expenditure) until that future time. A deferred charge on refunding arise from advance refunding of debt. The difference between the cost of the securities placed in trust for future payment of refunded debt and the net carrying value of that debt is deferred and amortized as a component of interest expense over the shorter of the term of the refunding issue or the original term of the refunded debt. The unamortized amount is reported as a deferred outflow of resources in the government-wide statements. 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. 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, 2014 are determined on the basis of current salary rates and include salary related payments

29 NOTES TO BASIC FINANCIAL STATEMENTS AS OF AND FOR THE YEAR ENDED JUNE 30, 2014 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (CONTINUED) District employees that belong to the East St. Louis Federation of Teachers union have collectively bargained the following benefits regarding unused sick time balances at year end: 1) There shall be unlimited accumulated number of sick days at a rate of twelve (12) days per year. For all twelve (12) month employees, the same shall be at the rate of twelve (12) days per year. 2) Accumulated unpaid sick leave shall be paid in severance pay when a teacher retires or leaves the District. Severance pay shall be equal to 25% of the accumulated sick leave up to a maximum of 180 days for those teachers with 11 to 15 years of service to the School District; 50% of the accumulated sick leave up to a maximum of 180 days for those teachers with years of service to the School District; and 75% of the accumulated sick leave up to a maximum of 180 days for those teachers with 20 or more years of service to the School District. The rate of pay for each day shall be the employee's daily rate of pay on the date of the letter announcing their retirement or resignation. District employees that belong to the General Service Employees Local 382 union have collectively bargained the following benefits regarding unused sick time balances at year end: Employees shall be granted one (1) sick day per month, or a total of twelve (12) days for the year. Accumulated unused sick leave shall be paid in severance pay when an employee retires in accordance with the following provisions: 1) The employee has worked for the District for twenty (20) years and is going to draw Illinois Municipal Retirement Fund Benefits, or the employee has attained age sixty-five (65), has worked for the District for fifteen (15) years and is going to draw Illinois Municipal Retirement Fund Benefits. 2) Severance pay shall be 75% of accumulated sick leave days with the employee's scheduled number of work days being the maximum total of days that may be multiplied by the 75% factor. 3) The rate of pay for each day shall be the employee's daily rate of pay on the date of the letter announcing their retirement or resignation. District employees that belong to the General Service Employees Local 382 receive varying amounts of vacation days during the year based upon years of service with the District, however, unused vacation time at the end of the fiscal year is not carried forward to the subsequent year. Administrative employees of the District receive varying amounts of sick and vacation day based upon individually negotiated contracts. Administrators are allowed to carry over a maximum of 30 days of vacation at the end of the fiscal year. Unused sick time is accumulated from year to year but is not paid out to administrators when they retire or leave the District. 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 position. Bond premiums and discounts are deferred and amortized over the life of the applicable bonds using the effective interest method. The balance at year end for premiums/discounts is shown as an increase or decrease in the liability section of the statement of net position. In the fund financial statements, governmental funds recognize bond premiums and discounts 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. Deferred Inflows of Resources A deferred inflow of resources represents an acquisition of net position that applies to a future period and therefore will not be recognized as an inflow of resources (revenue) until that future time

30 NOTES TO BASIC FINANCIAL STATEMENTS AS OF AND FOR THE YEAR ENDED JUNE 30, 2014 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (CONTINUED) Equity Classifications Equity is classified as net position in the government-wide financial statements and displayed in three components: Net investment in capital assets - 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. Restricted net position - Consists of net position with constraints placed on its 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 position - All other net position that does not meet the definition of "restricted" or "net investment in capital assets." 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 (a resolution) must occur prior to the end of the reporting period, but the amount of the commitment, which will be subject 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 Chief Financial Officer 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

31 NOTES TO BASIC FINANCIAL STATEMENTS AS OF AND FOR THE YEAR ENDED JUNE 30, 2014 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (CONTINUED) 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 is as follows: restricted fund balance, followed by committed fund balance, assigned fund balance, and lastly, unassigned fund balance. Governmental fund balances reported on the fund financial statements at June 30, 2014 are as follows: The nonspendable fund balance in the General Fund is comprised of two components: $240,646 for prepaid items and also the $2,689,360 receivable owed to the District from the East St. Louis Area Joint Agreement and the East. St. Louis Regional Vocational System. This latter amount has been presented as non-spendable fund balance as payments are not anticipated to be received within one year. Furthermore, a repayment schedule has not been agreed upon by all parties as of the date the financial statements were issued. The restricted fund balance in the General Fund is comprised of $3,299,538 for tort immunity. The remaining restricted fund balances are for the purpose of the respective funds as described above in the Major Governmental Funds section. The committed and assigned fund balances are for the purpose of the respective fund as described above in the Major Governmental Funds section. 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, 2013, 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 - CHANGES IN ACCOUNTING PRINCIPLES In March 2012, the GASB issued statement No Items Previously Reported as Assets and Liabilities. This statement establishes accounting and financial reporting standards that reclassify, as deferred outflows of resources or deferred inflows of resources, certain items that were previously reported as assets and liabilities and recognizes, as outflows of resources or inflows of resources, certain items that were previously reported as assets and liabilities. This standard was implemented effective July 1, NOTE 3 - DEPOSITS AND INVESTMENTS At year end, the District's cash and investments was comprised of the following: Governmentwide Fiduciary Total Cash and investments $ 34,162,786 $ 82,320 $ 34,245,106 Total $ 34,162,786 $ 82,320 $ 34,245,

32 NOTES TO BASIC FINANCIAL STATEMENTS AS OF AND FOR THE YEAR ENDED JUNE 30, 2014 NOTE 3 - DEPOSITS AND INVESTMENTS - (CONTINUED) For disclosure purposes, this amount is segregated into the following components: deposits with financial institutions, which include amounts held in demand accounts, savings accounts and non-negotiable certificates of deposit; and other investments, which consist of all investments other than certificates of deposit, as follows: Deposits with financial institutions $ 378,861 Other investments 33,866,245 Total $ 34,245,106 At year end, the District had the following investments: Investment Maturity (In Years) Fair Value Less than one More than 10 Repurchase agreements $ 25,087,673 $ 25,087,673 $ - $ - $ - Institutional treasury money market funds 4,522,824 4,522, U.S. Government Agency (explicitly guaranteed) 3,195,714-3,195, U.S. Government Agency (implicitly guaranteed) 1,060, , , Total $ 33,866,245 $ 29,965,968 $ 3,900,277 $ - $ - Credit Risk. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. State Statutes limit the investments in commercial paper and corporate bonds to the top three ratings of two nationally recognized statistical rating organizations (NRSRO's). The District's investments subject to credit risk include the repurchase agreements, the money market mutual fund, and the implicitly guaranteed U.S. Government Agency Securities. The repurchase agreements represent district funds invested in overnight sweep accounts, invested in government agency money market mutual funds, payable on demand; each of these have been rated Aaa by Moody's Investors Service and AA+ by Standard & Poor's. The District's investments in the money market mutual fund consist of investments in the Goldman Sachs Financial Square Treasury Obligation Fund. The fund invests exclusively in high quality, short term money market instruments that consist of U.S. government obligations and repurchase agreements collateralized by U.S. government obligations that are payable on demand. The Goldman Sachs Financial Square Treasury Obligation Fund was rated Aaa-mf by Moody's Investor Services and AAAm by Standards and Poor. The District's investments in implicitly rated government agency securities (FFCB and FHLB holdings) were also rated by Aaa by Moody's Investors Service and AA+ by Standard & Poor's. Concentration of Credit Risk. Concentration of credit risk is the risk of loss attributed to the magnitude of a government's investment in a single issuer. At June 30, 2014, included in the District's repurchase agreement investments were holdings in Regions Trust Cash Sweep, which were each in excess of 5% of the District's investments

33 NOTES TO BASIC FINANCIAL STATEMENTS AS OF AND FOR THE YEAR ENDED JUNE 30, 2014 NOTE 3 - DEPOSITS AND INVESTMENTS - (CONTINUED) 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, 2014, the bank balance of the District s deposit with financial institutions totaled $378,861, all of which was insured. Custodial Credit Risk - Investments. With respect to investments, custodial credit risk is the risk that, in the even 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. At June 30, 2014, all of the District's investments were held in the name of the District. 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, with accounting records being maintained to show the portion of the common account balance attributable to each participating fund. NOTE 4 - CAPITAL ASSETS Capital asset activity for the District for the year ended June 30, 2014 was as follows: Beginning Balance Increases Decreases Ending Balance Capital assets not being depreciated: Land $ 816,200 $ - $ 900 $ 815,300 Construction in progress 31,261,531 2,909,075 34,170,606 - Total capital assets not being depreciated 32,077,731 2,909,075 34,171, ,300 Capital assets being depreciated: Land improvements 4,763, ,058 4,604,112 Buildings and improvements 182,602,230 34,170,606 2,218, ,554,508 Transportation equipment 20,655,840 56, ,411 20,298,336 Total capital assets being depreciated 208,021,240 34,227,513 2,791, ,456,956 Less Accumulated Depreciation for: Land improvements 3,223, , ,058 3,198,645 Buildings and improvements 45,535,638 4,638,896 2,218,328 47,956,206 Transportation equipment 19,659, , ,411 19,894,694 Total accumulated depreciation 68,418,801 5,422,541 2,791,797 71,049,545 Net capital assets being depreciated 139,602,439 28,804, ,407,411 Net governmental activities capital assets $ 171,680,170 $ 31,714,047 $ 34,171,506 $ 169,222,

34 NOTES TO BASIC FINANCIAL STATEMENTS AS OF AND FOR THE YEAR ENDED JUNE 30, 2014 NOTE 4 - CAPITAL ASSETS - (CONTINUED) Depreciation expense was recognized in the operating activities of the District as follows: Governmental Activities Depreciation Operations and maintenance $ 5,422,541 Total depreciation expense - governmental activities $ 5,422,541 NOTE 5 - LONG TERM LIABILITIES Changes in General Long-term Liabilities. The following is the long-term liability activity for the District for the year ended June 30, 2014: Beginning Balance Additions Deletions Ending Balance Due Within One Year General obligation bonds $ 13,020,000 $ - $ 1,090,000 $ 11,930,000 $ 1,125,000 Alternate revenue bonds 28,825, ,000 28,200, ,000 Unamortized premium 325,673-48, ,891 - Total bonds payable 42,170,673-1,763,782 40,406,891 1,775,000 Lease purchase agreement 1,533, ,040 1,107, ,505 Workers compensation claims payable 1,782, , ,563 1,413,715 - Compensated absences 6,096,860 1,514,028 1,884,811 5,726,077 - Total long-term liabilities - governmental activities $ 51,583,640 $ 1,747,630 $ 4,677,196 $ 48,654,074 $ 2,219,505 The obligation for workers compensation claims and compensated absences will be paid from the General and Operations & Maintenance Funds. 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: Purpose Interest Rates Original Indebtedness Carrying Amount Series 2011 Funding Bonds dated December 15, 2011 are due in annual installments through January 1, % % $ 7,195,000 $ 7,195,000 Series 2012A Working Cash Bonds dated January 19, 2012 are due in annual installments through January 1, % % 5,660,000 3,505,000 Series 2012B Taxable Refunding Bonds dated January 1, 2012 are due in annual installments through January 1, % 1,230,000 1,230,000 Total $ 14,085,000 $ 11,930,

35 NOTES TO BASIC FINANCIAL STATEMENTS AS OF AND FOR THE YEAR ENDED JUNE 30, 2014 NOTE 5 - LONG TERM LIABILITIES - (CONTINUED) 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, 2014, $2,235,000 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 2015 $ 1,125,000 $ 571,241 $ 1,696, ,165, ,241 1,691, ,215, ,291 1,706, ,190, ,766 1,638, ,235,000 1,209,305 8,444,305 Total $ 11,930,000 $ 3,246,844 $ 15,176,844 The District is subject to the Illinois School Code, which limits the amount of certain indebtedness to 13.8% of the most recent available equalized assessed valuation of the District. As of June 30, 2014, the statutory debt limit for the District was $13,422,288, providing a debt margin of $1,492,288. Alternate Revenue Bonds. The District has pledged a portion of future general state aid revenues to repay the alternate revenue bonds.the District has committed to appropriate each year, from general state aid revenues, amounts sufficient to cover principal and interest requirements of the bonds. Proceeds from the bonds provided financing for various capital projects of the District. The bonds are payable solely from general state aid revenues and are payable through January 1, The total principal and interest remaining to be paid on the bonds is $38,791,157, with annual requirements ranging from $1,998,146 to $3,199,829. The portion of General State Aid used to pay the portion of principal and interest on the Alternative Revenue Bonds was $2,680,626 in the current year and total district-wide general state aid revenues for the current year was $46,944,355. The obligations for the alternative revenue bonds will be repaid from the Debt Service Fund. Alternate Revenue bonds currently outstanding are as follows: Purpose Interest Rates Original Indebtedness Carrying Amount Series 2001 Alternate Revenue Bonds dated February 1, 2001 are due in annual installments through January 1, % % $ 10,000,000 $ 2,945,000 Series 2004B Alternate Revenue Bonds dated March 1, 2004 are due in annual installments through January 1, % % 2,585,000 4,360,000 Series 2007 Alternate Revenue Bonds dated January 15, 2007 are due in annual installments through January 1, % 9,890,000 9,890,000 Series 2008 Alternative Revenue Bonds dated May 1, 2008 are due in annual installments through January 1, % % 14,655,000 11,005,000 Total $ 37,130,000 $ 28,200,

36 NOTES TO BASIC FINANCIAL STATEMENTS AS OF AND FOR THE YEAR ENDED JUNE 30, 2014 NOTE 5 - LONG TERM LIABILITIES - (CONTINUED) Annual debt service requirements to maturity for alternative revenue bonds are as follows for governmental type activities: Principal Interest Total 2015 $ 650,000 $ 1,351,584 $ 2,001, ,000 1,323,146 1,998, ,900,000 1,292,771 3,192, ,990,000 1,203,308 3,193, ,500,000 4,491,154 15,991, ,485,000 1,604,986 13,089,986 Total $ 28,200,000 $ 11,266,949 $ 39,466,949 Lease Purchase Agreement In prior years, the District entered into a lease purchase agreement in the amount of $3,929,028 for energy savings building renovations. At June 30, 2014 this entire amount was included in the District's capital assets. The future minimum lease obligations and the net present value of these minimum lease payments as of June 30, 2014 are as follows: Amount 2015 $ 482, , ,240 Total minimum lease payments 1,167,192 Less: amount representing interest (59,801) Present value of minimum lease payments $ 1,107,391 The obligations for the lease purchase agreement will be repaid from the Debt Service Fund. NOTE 6 - OPERATING LEASE REVENUE The District leases one building to third parties under an operating lease. The lease for the Vivian Adams Early Childhood Center extends through July 31, 2015 with the annual rate based the applicable Illinois Board of Higher Education (IBHE) rate, as of July 1, Assets included in District fixed assets at June 30, 2014 applicable to this lease were carried at a cost and net book value of $2,575,739 and $2,024,378, respectively. For the year ended June 30, 2014, the District received $260,958 in rent under this lease which is included as revenue in the General Fund in Fiscal Year Minimum future rentals to be received under this lease for next year, excluding unknown escalation amounts and unnegotiated renewals, are as follows at June 30, For the Year Ending Amount 2015 $ 260,958 Total $ 260,

37 NOTES TO BASIC FINANCIAL STATEMENTS AS OF AND FOR THE YEAR ENDED JUNE 30, 2014 NOTE 7 - RISK MANAGEMENT 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 has purchased 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 workers compensation insurance. A third party 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 claims and administration fees. The District carries stop loss coverage for individual claims in excess of $1,000,000 up to a maximum of $1,000,000 per claim. At June 30, 2014, unpaid claims, including an estimate of claims that have been incurred but not reported to the administrative agent, totaled $1,413,715. 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, 2013 and June 30, 2014, changes in the liability reported in the Statement of Net Position for unpaid claims are summarized as follows: Year Ended Claims Payable Beginning of Year Current Year Claims and Changes in Estimates Claims Payments Claims Payable End of Year June 30, 2013 $ 3,052,408 $ 331,705 $ 1,601,438 $ 1,782,675 June 30, 2014 $ 1,782,675 $ 233,602 $ 602,562 $ 1,413,715 NOTE 8 - RELATED PARTY TRANSACTIONS The District acts as the Administrative Agent for the East St. Louis Area Joint Agreement and the East St. Louis Regional Vocational System ("the Joint Agreements") and is also a member of both of these organizations. The District provides services and purchases supplies for the Joint Agreements and is subsequently reimbursed by the Joint Agreements. Funds owed to the District from the East St. Louis Joint Agreement for these services and purchased supplies were $1,394,468 at June 30, Funds owed to the District from the East St. Louis Regional Vocational System for these services and supplies were $1,294,892 at June 30, These amounts are not anticipated to be repaid to the District within one year as a repayment schedule has not been agreed upon by all parties as of the date the financial statements were issued

38 NOTES TO BASIC FINANCIAL STATEMENTS AS OF AND FOR THE YEAR ENDED JUNE 30, 2014 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 post-employment healthcare plan that was established by the Illinois legislature for the benefit of retired Illinois public school teachers employed outside the city of Chicago. The THIS Fund provides medical, prescription, and behavioral health benefits, but it does not provide vision, dental, or life insurance benefits to annuitants of the Teachers Retirement System (TRS). Annuitants not enrolled in Medicare may participate in the state-administered participating provider option plan or choose from several managed care options. Beginning February 1, 2014, annuitants who were enrolled in Medicare Parts A and B may be eligible to enroll in Medicare Advantage plans. The State Employees Group Insurance Act of 1971 (5 ILCS 375) outlines the benefit provisions of the THIS Fund and amendments to the plan can be made only by legislative action with the Governor s approval. Effective July 1, 2012, in accordance with Executive Order 12-01, the plan is administered by the Illinois Department of Central Management Services (CMS) with the cooperation of TRS. Section 6.6 of the State Employees Group Insurance Act of 1971 requires all active contributors to TRS who are not employees of the state to make a contribution to the THIS 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 0.97 percent of pay during the year ended June 30, State of Illinois contributions were $276,138, 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, 2013 and June 30, 2012 were 0.92 and 0.88 percent of pay, respectively. For these years, state contributions on behalf of District employees were $306,736 and $342,031, respectively. Employer Contributions to THIS Fund. The District also makes contributions to THIS Fund. The employer THIS Fund contribution was 0.72 percent during the year ended June 30, 2014 and 0.69 and 0.66 percent during the years ended June 30, 2013 and 2012, respectively. For the years ended June 30, 2014, 2013 and 2012 the District paid $204,969, $230,052 and $256,523 to the THIS Fund, respectively, which was 100 percent of the required contribution for those years. The publicly available financial report of the THIS Fund may be found on the website of the Illinois Auditor General: The 2014 and 2013 reports are listed under "Central Management Services." Prior reports are available under "Healthcare and Family Services."

39 NOTES TO BASIC FINANCIAL STATEMENTS AS OF AND FOR THE YEAR ENDED JUNE 30, 2014 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 costsharing, 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 of TRS, 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 licensure is required. The active member contribution rate for the year ended June 30, 2014 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 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, 2013 and 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, 2014, State of Illinois contributions were based on percent of creditable earnings not paid from federal funds, and the District recognized revenue and expenditures of $8,475,905 in pension contributions that the State of Illinois paid directly to TRS. For the years ended June 30, 2013 and 2012, the State of Illinois contributions rates as percentages of creditable earnings not paid from federal funds were percent ($7,920,853) and percent ($8,338,430), respectively. The District makes other types of employer contributions directly to TRS: 2.2 Formula Contributions. For the years ended June 30, 2014, 2013 and 2012, 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 $165,114, $193,377 and $225,430, 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

40 NOTES TO BASIC FINANCIAL STATEMENTS AS OF AND FOR THE YEAR ENDED JUNE 30, 2014 NOTE 10 - RETIREMENT SYSTEMS - (CONTINUED) For the year ended June 30, 2014, the employer pension contribution was percent of salaries paid from federal and special trust funds. For the years ended June 30, 2013 and 2012, the employer pension contribution was and percent of salaries paid from those funds, respectively. For the year ended June 30, 2014, salaries totaling $4,531,411 were paid from federal and special trust funds that required employer contributions of $1,604,573, which was equal to the District's actual contribution. For the years ended June 30, 2013 and 2012, required District contributions were $1,431,259 and $1,343,384, respectively. 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 percent and applies when the member is age 55 at retirement. For the year ending June 30, 2014, the District paid $- to TRS for District contributions under the ERO program. For the years ended June 30, 2013 and 2012, the District paid $179,080 and $90,231, 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, 2014, 2013 and 2012, the District paid $44,649, $104,364 and $-, respectively, to TRS for employer contributions due on salary increases in excess of 6 percent. If an employer grants sick leave days in excess of the normal annual allotment and those days are used as TRS service credit, the employer makes a contribution to TRS. The contribution is based on the number of excess sick leave days used as service credit, the highest salary rate reported by the granting employer during the four-year sick leave review period, and the TRS total normal cost rate (17.29 percent of salary during the year ended June 30, 2014).. Further Information on TRS. TRS financial information, an explanation of TRS'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, The report for the year ended June 30, 2014, is expected to be available in late 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 The most current report is also available on the TRS website at 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

41 NOTES TO BASIC FINANCIAL STATEMENTS AS OF AND FOR THE YEAR ENDED JUNE 30, 2014 NOTE 10 - RETIREMENT SYSTEMS - (CONTINUED) 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 2013 was 9.80 percent of annual covered payroll. The employer annual required contribution rate for calendar year 2013 was 9.80 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. Annual Pension Cost and Net Pension Obligation. The District's annual pension cost and net pension obligation are as follows: Annual required contribution $ 1,085,791 Interest on net pension obligation - Adjustment to annual pension contribution - Annual pension cost 1,085,791 Contributions made (1,085,791) Change in net pension obligation - Net Pension Obligation - Beginning of Year 55,695 Net Pension Obligation - End of Year $ 55,695 The liability for the IMRF net pension obligation is considered immaterial to the government-wide financial statements, and therefore, has not been recorded. The interest on the beginning net pension obligation and adjustment to the annual 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 Annual Pension Cost Percentage of Annual Pension Cost Contributed Net Pension Obligation June 30, 2014 $ 1,085, % $ 55,695 June 30, ,270, % 55,695 June 30, ,761, % 55,695 The required contribution for fiscal year 2014 was determined as part of the December 31, 2011, actuarial valuation using the entry age actuarial cost method. The actuarial assumptions at December 31, 2011, included (a) 7.50% investment rate of return (net of administrative and direct investment 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 of 3% annually. The actuarial value of District plan assets was determined using techniques that smooth the effects of short-term 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 District's unfunded actuarial accrued liability at December 31, 2011 is being amortized as a level percentage of projected payroll on an open 30 year basis

42 NOTES TO BASIC FINANCIAL STATEMENTS AS OF AND FOR THE YEAR ENDED JUNE 30, 2014 NOTE 10 - RETIREMENT SYSTEMS - (CONTINUED) Funded Status and Funding Progress. As of December 31, 2013, the most recent actuarial valuation date, the Regular plan was percent funded. The actuarial accrued liability for benefits was $32,035,449 and the actuarial value of assets was $37,702,411, resulting in an overfunded actuarial accrued liability (UAAL) of $5,666,962. The covered payroll for calendar year 2013 (annual payroll of active employees covered by the plan) was $11,079,504. Because the plan is overfunded, there is no ratio of the UAAL to the covered payroll. 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. 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 the terms of the grants. Management believes such disallowance, if any, would be immaterial. NOTE 13 - EFFECT OF NEW ACCOUNTING STANDARDS ON CURRENT-PERIOD FINANCIAL STATEMENTS The Governmental Accounting Standards Board (GASB) has approved GASB Statement No. 68, Accounting and Financial Reporting for Pensions - an amendment of GASB Statement No. 27, Statement No. 69, Government Combinations and Disposals of Government Operations, and Statement No. 70, Accounting and Financial Reporting for Nonexchange Financial Guarantees. Application of these standards may restate portions of these financial statements. NOTE 14 - INTERFUND TRANSFERS During the year, the Board transferred $3,759,039 of fund balance from the General Fund (Educational Account) to the Debt Service Fund. The purpose of this transfer was to provide a funding source to the Debt Service Fund so that an existing interfund loan between the General Fund (Educational Account) and the Debt Service Fund could be repaid. As of June 30, 2014, all interfund loans have been repaid between the General Fund (Educational Account) and the Debt Service Fund. State law allows for the above transfer

43 ILLINOIS MUNICIPAL RETIREMENT FUND SCHEDULE OF EMPLOYER'S CONTRIBUTIONS AND ANALYSIS OF FUNDING PROGRESS AS OF AND FOR THE YEAR ENDED JUNE 30, 2014 Fiscal Year End Annual Pension Cost (APC) Percentage of APC Contributed Net Pension Obligation 6/3014 $ 1,085, % $ 55,695 6/3013 1,270, % 55,695 6/3012 1,761, % 55,695 Actuarial Valuation Date Actuarial Value of Assets (a) Actuarial Accrued Liability (AAL) Entry Age (b) Unfunded AAL (UAAL) (b-a) Funded Ratio (a/b) Covered Payroll (c) UAAL as a Percentage of Covered Payroll ((b-a)/c) 12/31/13 $ 37,702,411 $ 32,035,449 $ (5,666,962) % $ 11,079, % 12/31/12 36,828,503 36,476,479 (352,024) % 13,934, % 12/31/11 43,657,446 46,992,429 3,334, % 19,923, % On a market basis, the actuarial value of assets as of December 31, 2013 is $47,809,633. On a market basis, the funded ratio would be %. The actuarial value of assets and accrued liability cover active and inactive members who have service credit with East St. Louis School District 189. They do not include amounts for retirees. The actuarial accrued liability for retirees is 100% funded. See Auditors' Report and Notes to Required Supplementary Information

44 GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL - NON- GAAP BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2014 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2013 Revenues Local sources 2014 ORIGINAL BUDGET FINAL BUDGET ACTUAL VARIANCE WITH FINAL BUDGET 2013 ACTUAL General levy $ 1,635,151 $ 1,623,187 $ 1,621,161 $ (2,026) $ 1,725,699 Tort immunity levy 3,186,877 3,163,558 3,369, ,481 3,158,431 Leasing levy 41,713 41,408 41,282 (126) 67,991 Special education levy 33,370 33,126 33, ,395 Corporate personal property replacement taxes 3,231,227 3,136,227 2,818,816 (317,411) 2,746,947 Summer school - tuition from pupils or parents (in state) 219, , ,411 (304) 231,279 Investment income 27,826 41,614 56,003 14,389 32,445 Gain or loss on sale of investments - 15,000 16,959 1,959 (77,184) Other food service 125, , ,316 19, ,911 Admissions - athletic 30,487 30,487 23,926 (6,561) 24,705 Admissions - other - - 6,179 6, Fees - - 2,962 2,962 4,882 Rentals 274, , , , ,976 Contributions and donations from private sources 25,096 26,846 14,094 (12,752) - Impact fees from municipal or county governments - - 5,294 5,294 - Refund of prior years' expenditures - 165, ,332 34,332 14,305 Other 121,399 95, , , ,040 Total local sources 8,953,196 8,990,547 9,350, ,601 8,533,722 State sources General state aid 41,794,361 39,356,444 37,763,629 (1,592,815) 47,896,132 Other unrestricted grants-inaid from state source 3,000,000 3,000,000 3,000,000-9,000,000 Special education - private facility tuition 266, , ,800 48, ,069 Special education - extraordinary 919, , ,352 57,372 1,455,396 Special education - personnel 1,065,881 1,065,881 1,144,764 78,883 1,880,836 Special education - orphanage - individual 900,000 1,126,000 1,200,228 74, ,609 Special education - orphanage - summer 31,300 51,300 62,679 11,379 34,076 Special education - summer school 72,000 72, ,709 28,709 72,347 CTE - WECEP 158, , ,891 (31,319) 192,890 Bilingual education - downstate - TPI 14,000 24,030 9,164 (14,866) 12,900 State free lunch & breakfast 75,000 75,000 62,077 (12,923) 91,726 Driver education 9,000 9,000 15,184 6,184 13,219 See Auditors' Report and Notes to Required Supplementary Information

45 GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL - NON- GAAP BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2014 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, ORIGINAL BUDGET FINAL BUDGET ACTUAL VARIANCE WITH FINAL BUDGET 2013 ACTUAL Truant alternative/optional education $ 130,594 $ 126,350 $ 106,645 $ (19,705) $ 130,594 Early childhood - block grant 1,463,320 1,563,320 1,509,500 (53,820) 1,563,320 Other restricted revenue from state sources 720, , ,881 61, ,408 Total state sources 50,620,469 48,785,465 47,427,503 (1,357,962) 64,414,522 Federal sources Federal impact aid 84, , ,666 46,050 98,847 Head start ,239 50,239 50,239 National school lunch program 1,809,525 1,809,525 2,395, ,007 2,580,913 School breakfast program 683, , , , ,442 Summer food service admin/program 77,500-31,118 31,118 69,610 Child care commodity/sfs 13-adult day care - 99, ,671 11,671 4,631 Fresh fruits & vegetables 97,828 97, ,683 60, ,206 Food service - other , , ,043 Title I - Low income 8,514,453 9,478,230 9,096,111 (382,119) 7,897,332 Title I - Other 2,927,628 3,000, ,541 (2,606,761) 318,217 Title IV - 21st Century 430, , , , ,048 Federal - special education - IDEA - room & board ,064 Title I - low income ,879 Title I - school improvement (part g) , ,479 1,541,917 Race to the Top 291, , ,164 (116,644) - Title II - Teacher quality 1,770,382 1,929,874 2,139, ,553 1,923,785 Medicaid matching funds - administrative outreach 300, , ,496 (134,504) 182,453 Medicaid matching funds - fee-for-service program , , ,057 Other restricted revenue from federal sources 220, ,000 2,849,759 2,573,759 1,318,797 Total federal sources 17,206,252 18,681,684 20,300,627 1,618,943 18,276,480 Total revenues 76,779,917 76,457,696 77,078, ,582 91,224,724 See Auditors' Report and Notes to Required Supplementary Information

46 GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL - NON- GAAP BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2014 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2013 Expenditures Instruction 2014 ORIGINAL BUDGET FINAL BUDGET ACTUAL VARIANCE WITH FINAL BUDGET 2013 ACTUAL Regular programs Salaries $ 20,425,616 $ 16,382,152 $ 16,224,729 $ 157,423 $ 17,816,062 Employee benefits 4,285,854 3,299,298 3,256,944 42,354 3,276,523 Purchased services 67, , ,123 (3,982) 109,055 Supplies and materials 489, , , , ,069 Capital outlay 8,250 4,742-4,742 22,696 Other objects 1,450 2,001 1, Termination benefits 673, , , , ,383 Total 25,951,796 21,125,078 20,293, ,794 22,273,513 Pre-K programs Salaries 887,042 1,110,382 1,009, ,852 1,087,024 Employee benefits 280, , , , ,470 Purchased services 25, ,854 3, ,910 2,413 Supplies and materials 24,436 34,905 31,019 3,886 39,100 Capital outlay - - 6,987 (6,987) - Termination benefits - 4,750 (64,226) 68,976 4,367 Total 1,216,708 1,705,738 1,133, ,557 1,374,374 Special education programs Salaries 3,940,097 3,901,596 4,525,102 (623,506) 5,342,337 Employee benefits 355, , ,089 (668,422) 861,405 Purchased services 30,609 30, ,963 16,110 Supplies and materials 57,205 59,530 50,920 8,610 35,576 Termination benefits 283, ,338 74, , ,770 Total 4,667,503 4,430,047 5,516,795 (1,086,748) 6,498,198 Remedial and supplemental programs K - 12 Salaries 2,271,836 2,441,381 1,986, ,762 2,249,545 Employee benefits 966,926 1,070, , ,087 1,107,953 Purchased services 63, , ,726 (62,143) 220,052 Supplies and materials 68, , ,338 (141,304) 88,611 Capital outlay - - (63,700) 63,700 - Termination benefits 97, Total 3,469,110 4,241,092 3,680, ,102 3,666,161 See Auditors' Report and Notes to Required Supplementary Information

47 GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL - NON- GAAP BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2014 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, ORIGINAL BUDGET FINAL BUDGET ACTUAL VARIANCE WITH FINAL BUDGET 2013 ACTUAL CTE programs Salaries $ 119,327 $ 211,704 $ 25,126 $ 186,578 $ 147,049 Employee benefits 82,030 49,603 3,546 46,057 22,764 Purchased services 18,787 19,240 6,766 12,474 14,892 Supplies and materials 36,135 25,108 92,468 (67,360) 28,187 Capital outlay ,933 (22,933) - Termination benefits - 37,548 33,042 4,506 34,671 Total 256, , , , ,563 Interscholastic programs Salaries 313, , ,944 26, ,142 Employee benefits 9,205 9,570 27,299 (17,729) 49,932 Purchased services 301, , ,731 42, ,283 Supplies and materials 182, , ,487 20, ,745 Capital outlay 22,004 19,862 16,066 3,796 34,952 Other objects 29,335 34,321 19,743 14,578 16,684 Termination benefits 94, Total 952, , ,270 90, ,738 Gifted programs Purchased services 4,500 4,500 3,029 1,471 - Supplies and materials 25,000 8,000 6,119 1,881 - Other objects 1,500 1, ,475 - Total 31,000 14,000 9,173 4,827 - Driver's education programs Other objects 5,000 5,000-5,000 - Total 5,000 5,000-5,000 - Regular K - 12 programs - private tuition Other objects 1,670,851 1,814,051 1,811,949 2,102 1,591,287 Total 1,670,851 1,814,051 1,811,949 2,102 1,591,287 Special education programs K private tuition Other objects 5,258,904 5,000,004 3,946,522 1,053,482 3,810,177 Total 5,258,904 5,000,004 3,946,522 1,053,482 3,810,177 Total instruction 43,479,571 39,546,837 37,354,045 2,192,792 40,217,011 See Auditors' Report and Notes to Required Supplementary Information

48 GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL - NON- GAAP BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2014 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2013 Support services Pupils 2014 ORIGINAL BUDGET FINAL BUDGET ACTUAL VARIANCE WITH FINAL BUDGET 2013 ACTUAL Attendance and social work services Salaries $ 860,000 $ 1,186,602 $ 1,025,382 $ 161,220 $ 1,252,701 Employee benefits 202, , , , ,986 Purchased services 106, ,740 48,034 53,706 66,321 Supplies and materials 53,175 57,665 43,866 13,799 2,043 Termination benefits 74, ,490 Total 1,297,075 1,659,752 1,307, ,763 1,591,541 Guidance services Salaries 1,091, , ,470 25,362 1,043,588 Employee benefits 281, , ,335 33, ,841 Termination benefits 57,203 76,958 67,723 9,235 42,306 Total 1,430, , ,528 68,366 1,253,735 Health services Salaries 176, , ,353 (32,863) 316,210 Employee benefits 43,683 44,540 53,445 (8,905) 50,450 Purchased services 483, , ,681 93, ,888 Total 703, , ,479 51, ,548 Psychological services Salaries 242, , ,171 (154,787) 393,812 Employee benefits 49,743 33,167 59,255 (26,088) 96,206 Total 292, , ,426 (180,875) 490,018 Speech pathology and audiology services Salaries 507, , ,788 (139,199) 596,859 Employee benefits 103,776 71,435 91,189 (19,754) 94,839 Purchased services 1,191 1, ,185 1,054 Termination benefits - 67,077 69,278 (2,201) 63,750 Total 612, , ,055 (159,969) 756,502 Total pupils 4,335,195 3,879,564 3,748, ,087 4,769,344 See Auditors' Report and Notes to Required Supplementary Information

49 GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL - NON- GAAP BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2014 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2013 Instructional staff 2014 ORIGINAL BUDGET FINAL BUDGET ACTUAL VARIANCE WITH FINAL BUDGET 2013 ACTUAL Improvement of instructional services Salaries $ 1,797,433 $ 1,519,948 $ 1,025,026 $ 494,922 $ 1,964,685 Employee benefits 370, , ,551 (48,805) 558,218 Purchased services 3,355,790 3,497, ,958 2,781, ,292 Supplies and materials 58,039 62, ,868 (150,036) 10,841 Other objects Termination benefits 167,829-19,500 (19,500) 13,118 Total 5,749,689 5,401,206 2,342,903 3,058,303 3,457,896 Educational media services Salaries 307, , ,493 14, ,021 Employee benefits 63,027 64,255 58,816 5,439 60,732 Purchased services 474, , , , ,264 Supplies and materials 241, , ,046 33, ,431 Capital outlay 115, , ,596 (10,051) 15,446 Total 1,201,894 1,348,133 1,143, , ,894 Assessment and testing Purchased services ,302 (75,302) 446 Supplies and materials Total ,302 (75,302) 1,271 Total instructional staff 6,951,583 6,749,339 3,561,889 3,187,450 4,421,061 General administration Board of education services Salaries 930, , , , ,008 Employee benefits 619, , ,934 19, ,994 Purchased services 833, , , , ,688 Supplies and materials 100,763 89,449 70,301 19,148 63,368 Other objects 156, , ,224 24,560 18,684 Termination benefits 17, ,313 Total 2,658,546 2,516,351 2,205, ,273 2,681,055 See Auditors' Report and Notes to Required Supplementary Information

50 GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL - NON- GAAP BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2014 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, ORIGINAL BUDGET FINAL BUDGET ACTUAL VARIANCE WITH FINAL BUDGET 2013 ACTUAL Executive administration services Salaries $ 467,200 $ 467,200 $ 517,281 $ (50,081) $ 519,881 Employee benefits 64,728 36,990 52,862 (15,872) 83,969 Purchased services 77,323 80,110 20,636 59,474 13,179 Supplies and materials 25,517 31,188 21,814 9,374 14,113 Capital outlay 1,000 1,000-1,000 - Other objects 16,894 16,894 5,279 11,615 5,665 Termination benefits 208, Total 860, , ,872 15, ,807 Special area administration services Salaries 5,534-51,666 (51,666) 36,423 Employee benefits 2,103-9,152 (9,152) 5,409 Purchased services 19,530 18,854 10,309 8,545 14,902 Supplies and materials 4,644 4,577 2,072 2,505 1,969 Termination benefits 131, Total 163,591 23,431 73,199 (49,768) 58,703 Tort immunity services Purchased services 1,362,380 1,503,001 1,810,505 (307,504) 3,412,905 Other objects 3,182,091 2,498, ,610 1,843, ,249 Total 4,544,471 4,001,028 2,465,115 1,535,913 4,251,154 Total general administration 8,227,521 7,174,192 5,361,264 1,812,928 7,627,719 School administration Office of the principal services Salaries 3,810,939 4,029,760 3,616, ,824 4,830,283 Employee benefits 673, , ,378 80, ,982 Purchased services 172, , ,590 40, ,921 Supplies and materials 37,690 38,158 11,778 26,380 10,752 Capital outlay 2,055 3,155-3,155 1,245 Termination benefits 461, ,862 69,285 72, ,207 Total 5,157,869 5,056,927 4,420, ,960 5,956,390 Other support services - school administration Salaries ,695 (36,695) 49,232 Employee benefits - - 5,736 (5,736) 7,952 Total ,431 (42,431) 57,184 Total school administration 5,157,869 5,056,927 4,463, ,529 6,013,574 See Auditors' Report and Notes to Required Supplementary Information

51 GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL - NON- GAAP BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2014 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2013 Business 2014 ORIGINAL BUDGET FINAL BUDGET ACTUAL VARIANCE WITH FINAL BUDGET 2013 ACTUAL Direction of business support services Purchased services $ - $ - $ 1,157 $ (1,157) $ - Total - - 1,157 (1,157) - Fiscal services Salaries 603, , ,679 (117,092) 624,150 Employee benefits 84,852 42,245 81,650 (39,405) 100,810 Purchased services 330, , , ,654 30,130 Supplies and materials 26,706 24,206 13,587 10,619 11,483 Capital outlay 4,566 4,584-4,584 1,985 Other objects 63,657 95,474 58,440 37,034 57,594 Termination benefits 99, Total 1,214, , ,969 96, ,152 Operation and maintenance of plant services Salaries 2,499,072 2,698,374 2,489, ,940 2,541,997 Employee benefits 561, , ,887 54, ,569 Purchased services 1,376,453 1,351,006 1,040, , ,567 Supplies and materials 2,417,791 2,280,971 1,751, ,795 1,667,308 Capital outlay 15,146 25,403 22,087 3,316 5,146 Termination benefits 23,642 2,261 56,431 (54,170) 29,394 Total 6,893,698 6,955,047 5,902,682 1,052,365 5,636,981 Pupil transportation services Salaries 24,086 23,162 4,503 18,659 51,533 Employee benefits 9,142 9, ,181 8,209 Purchased services 6,115 3,461 5,860 (2,399) 1,079 Termination benefits 8, Total 47,855 36,178 10,737 25,441 60,821 Food services Salaries 4,909-9,227 (9,227) 3,755 Purchased services 2,700,158 2,670,733 3,038,793 (368,060) 3,057,279 Supplies and materials ,760 (10,760) 1,776 Capital outlay - 6,500 5,481 1,019 - Total 2,705,067 2,677,233 3,064,261 (387,028) 3,062,810 See Auditors' Report and Notes to Required Supplementary Information

52 GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL - NON- GAAP BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2014 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, ORIGINAL BUDGET FINAL BUDGET ACTUAL VARIANCE WITH FINAL BUDGET 2013 ACTUAL Internal services Salaries $ 209,070 $ 209,495 $ 209,495 $ - $ 241,858 Employee benefits 28,334 28,874 31,516 (2,642) 39,064 Purchased services 6,897 9,902 5,597 4,305 5,119 Supplies and materials 55,117 55,219 42,010 13,209 43,488 Capital outlay (682) - Other objects Central Total 299, , ,390 14, ,599 Total business 11,160,372 10,874,411 10,074, ,215 9,916,363 Direction of central support services Salaries ,354 (116,354) 80,042 Employee benefits ,730 (38,730) 26,059 Purchased services ,332 (665,332) 779,075 Supplies and materials ,091 Total ,416 (820,416) 886,267 Planning, research, development and evaluation services Salaries 38,752 53,589 57,013 (3,424) 34,275 Employee benefits 16,663 19,873 7,768 12,105 8,620 Purchased services 1,400 4, ,404 (107,609) 18,591 Supplies and materials 10,440 10,000 5,795 4,205 1,775 Total 67,255 88, ,980 (94,723) 63,261 Information services Purchased services 22,513 21,490 7,298 14,192 20,802 Total 22,513 21,490 7,298 14,192 20,802 Staff services Salaries 146, , ,712 17, ,901 Employee benefits 26,181 26,091 15,170 10,921 37,624 Purchased services 24,735 99,535 40,569 58,966 29,625 Supplies and materials 25,066 25,465 15,853 9,612 13,003 Termination benefits 12,041-6,332 (6,332) 26,986 Total 234, , ,636 90, ,139 Data processing services Purchased services 6,066 3,997 1,090 2,907 19,378 Supplies and materials 6,047 5,001 1,899 3, Total 12,113 8,998 2,989 6,009 20,126 Total central 336, ,293 1,221,319 (804,026) 1,312,595 See Auditors' Report and Notes to Required Supplementary Information

53 GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL - NON- GAAP BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2014 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, ORIGINAL BUDGET FINAL BUDGET ACTUAL VARIANCE WITH FINAL BUDGET 2013 ACTUAL Other supporting services Salaries $ 41,580 $ 167,821 $ 265,992 $ (98,171) $ 42,285 Employee benefits 17,879 77,467 89,838 (12,371) 12,313 Purchased services 1,669,909 1,389,927 1,215, ,250 1,096,018 Supplies and materials 20,300 18,350 20,563 (2,213) 15,713 Total 1,749,668 1,653,565 1,592,070 61,495 1,166,329 Total support services 37,918,719 35,805,291 30,022,613 5,782,678 35,226,985 Community services Salaries 60,868 78,664 79,446 (782) 161,619 Employee benefits 20,508 17,890 8,656 9,234 40,990 Purchased services 202, , ,970 58, ,538 Supplies and materials 130,960 37,333 9,556 27,777 14,672 Capital outlay - - 9,736 (9,736) - Termination benefits 7, Total community services 422, , ,364 85, ,819 Payments to other districts and governmental units Payments for regular programs Purchased services 6,000 64,520 21,728 42,792 28,339 Total 6,000 64,520 21,728 42,792 28,339 Other payments to instate governmental units Other objects ,583 Total ,583 Total payments to other districts and governmental units 6,000 64,520 21,728 42,792 63,922 Total expenditures 81,826,725 75,863,100 67,759,750 8,103,350 75,861,737 Excess (deficiency) of revenues over expenditures (5,046,808) 594,596 9,318,528 8,723,932 15,362,987 See Auditors' Report and Notes to Required Supplementary Information

54 GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL - NON- GAAP BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2014 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2013 Other financing sources (uses) 2014 ORIGINAL BUDGET FINAL BUDGET ACTUAL VARIANCE WITH FINAL BUDGET 2013 ACTUAL Transfer to capital projects fund $ - $ (3,900,000) $ - $ 3,900,000 $ - Transfer to debt service fund - (3,759,039) (3,759,039) - - Total other financing sources (uses) - (7,659,039) (3,759,039) 3,900,000 - Net change in fund balance $ (5,046,808) $ (7,064,443) 5,559,489 $ 12,623,932 15,362,987 Fund balance, beginning of year 23,566,377 8,203,390 Fund balance, end of year $ 29,125,866 $ 23,566,377 See Auditors' Report and Notes to Required Supplementary Information

55 OPERATIONS AND MAINTENANCE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL FOR THE YEAR ENDED JUNE 30, 2014 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2013 Revenues Local sources 2014 ORIGINAL BUDGET FINAL BUDGET ACTUAL VARIANCE WITH FINAL BUDGET 2013 ACTUAL General levy $ 417,130 $ 414,078 $ 413,563 $ (515) $ 450,751 Corporate personal property replacement taxes 68,026 66,026 68,026 2,000 - Investment income (8) 9 Rentals 20,000 16,000 20,982 4,982 8,649 Other - - (1) (1) - Total local sources 505, , ,570 6, ,409 State sources General state aid 2,400,000 2,010,000 2,010, Total state sources 2,400,000 2,010,000 2,010, Total revenues 2,905,164 2,506,112 2,512,570 6, ,409 Expenditures Business Operation and maintenance of plant services Salaries 583, , , , ,447 Employee benefits 92,883 70,885 33,475 37,410 92,781 Purchased services 1,565,060 1,299, , , ,796 Supplies and materials 528, , , , ,009 Capital outlay 164,868 67,569 29,072 38,497 35,442 Termination benefits 46,500 1,151 15,305 (14,154) - Total 2,981,353 2,533,298 1,512,161 1,021,137 1,782,475 Total business 2,981,353 2,533,298 1,512,161 1,021,137 1,782,475 Total support services 2,981,353 2,533,298 1,512,161 1,021,137 1,782,475 Total expenditures 2,981,353 2,533,298 1,512,161 1,021,137 1,782,475 Net change in fund balance $ (76,189) $ (27,186) 1,000,409 $ 1,027,595 (1,323,066) Fund balance, beginning of year 800,111 2,123,177 Fund balance, end of year $ 1,800,520 $ 800,111 See Auditors' Report and Notes to Required Supplementary Information

56 TRANSPORTATION FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL FOR THE YEAR ENDED JUNE 30, 2014 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2013 Revenues Local sources 2014 ORIGINAL BUDGET FINAL BUDGET ACTUAL VARIANCE WITH FINAL BUDGET 2013 ACTUAL General levy $ 166,852 $ 165,631 $ 165,423 $ (208) $ 180,297 Investment income (3) - Other - - 4,816 4,816 3,774 Total local sources 166, , ,239 4, ,071 State sources General state aid 1,850,000 1,850,000 1,850, Transportation - regular/vocational 575, , ,534 89, ,643 Transportation - special education 1,289,705 1,289,705 1,383,888 94,183 1,716,675 Total state sources 3,715,051 3,939,705 4,123, ,717 2,553,318 Total revenues 3,881,906 4,105,339 4,293, ,322 2,737,389 Expenditures Support Services Business Pupil transportation services Salaries 513, , ,331 (44,799) 510,947 Employee benefits 76,986 81,680 4,998 76,682 82,525 Purchased services 3,085,252 3,043,373 2,695, ,555 2,835,735 Supplies and materials 33,952 32,681 2,271 30,410 17,820 Other objects - 40,100-40,100 - Total 3,709,429 3,742,366 3,292, ,948 3,447,027 Total business 3,709,429 3,742,366 3,292, ,948 3,447,027 Total support services 3,709,429 3,742,366 3,292, ,948 3,447,027 Total expenditures 3,709,429 3,742,366 3,292, ,948 3,447,027 Net change in fund balance $ 172,477 $ 362,973 1,001,243 $ 638,270 (709,638) Fund balance, beginning of year 182, ,976 Fund balance, end of year $ 1,183,581 $ 182,338 See Auditors' Report and Notes to Required Supplementary Information

57 MUNICIPAL RETIREMENT/SOCIAL SECURITY FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL FOR THE YEAR ENDED JUNE 30, 2014 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2013 Revenues Local sources 2014 ORIGINAL BUDGET FINAL BUDGET ACTUAL VARIANCE WITH FINAL BUDGET 2013 ACTUAL General levy $ 1,998,222 $ 1,983,601 $ 885,841 $ (1,097,760) $ 1,049,251 Social security/medicare only levy , ,921 1,042,344 Corporate personal property replacement taxes 102,039 99, , , ,000 Investment income (20) 26 Total local sources 2,100,281 2,082,660 2,096,762 14,102 2,519,621 State sources CTE - WECEP Bilingual education - downstate - TPI - - 1,905 1,905 - Truant alternative/optional education ,558 12,558 - Early childhood - block grant ,820 71,820 - Other restricted revenue from state sources - 93,882 19,166 (74,716) - Total state sources - 93, ,907 12,025 - Federal sources Title I - Low income , ,434 - Title I - Other Title IV - 21st Century ,430 21,430 - Title I - school improvement (part g) - - 6,592 6,592 - Title II - Teacher quality ,309 14,309 - Other restricted revenue from federal sources - 355,152 35,408 (319,744) - Total federal sources - 355, ,035 (119,117) - Total revenues 2,100,281 2,531,694 2,438,704 (92,990) 2,519,621 See Auditors' Report and Notes to Required Supplementary Information

58 MUNICIPAL RETIREMENT/SOCIAL SECURITY FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL FOR THE YEAR ENDED JUNE 30, 2014 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2013 Expenditures Instruction 2014 ORIGINAL BUDGET FINAL BUDGET ACTUAL VARIANCE WITH FINAL BUDGET 2013 ACTUAL Regular programs $ 439,271 $ 360,223 $ 343,696 $ 16,527 $ 468,661 Pre-K programs ,389 (50,389) 8,255 Special education programs 255, , ,868 41, ,391 Remedial and supplemental programs K ,786 (48,786) 32,693 CTE programs 834 1, , Interscholastic programs 5,991 6,654 14,209 (7,555) 9,601 Total instruction 701, , ,152 (47,617) 862,740 Support services Pupils Attendance and social work services 70,944 88, ,542 (12,751) 58,178 Guidance services 15,862 22,910 12,232 10,678 12,179 Health services 19,938 29,403 23,930 5,473 32,185 Psychological services 4,728 5,228 26,543 (21,315) 117,338 Speech pathology and audiology services 22,605 29,384 25,368 4,016 17,898 Total pupils 134, , ,615 (13,899) 237,778 Instructional staff Improvement of instructional staff 10,644 2,277 20,104 (17,827) 9,875 Educational media services 42,875 62,311 46,142 16,169 34,689 Total instructional staff 53,519 64,588 66,246 (1,658) 44,564 General administration Board of education services 7,260 8,127-8,127 3,124 Executive administration services 47, ,721 44,942 58,779 36,272 Special area administration services - - 5,400 (5,400) - Total general administration 54, ,848 50,342 61,506 39,396 See Auditors' Report and Notes to Required Supplementary Information

59 MUNICIPAL RETIREMENT/SOCIAL SECURITY FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL FOR THE YEAR ENDED JUNE 30, 2014 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2013 School administration 2014 ORIGINAL BUDGET FINAL BUDGET ACTUAL VARIANCE WITH FINAL BUDGET 2013 ACTUAL Office of the principal services $ 295,599 $ 497,859 $ 339,136 $ 158,723 $ 176,413 Other support services - school administration (435) - Business Total school administration 295, , , , ,413 Fiscal services 112, , ,966 35, ,563 Operations and maintenance of plant services 460, , , , ,513 Pupil transportation services 4,232 6,127 84,508 (78,381) 3,344 Internal services 38,197 55,421 41,751 13,670 30,189 Central Total business 615, , , , ,609 Direction of central support services - - 3,954 (3,954) - Planning, research, development and evaluation services - - 7,256 (7,256) - Staff services 13,257 19,654 20,043 (389) 10,235 Total central 13,257 19,654 31,253 (11,599) 10,235 Other supporting services - - 6,931 (6,931) - Total support services 1,166,200 1,832,406 1,489, ,425 1,073,995 Community services 19,864 10,660 10,719 (59) 17,487 Total expenditures 1,887,358 2,410,601 2,115, ,749 1,954,222 Net change in fund balance $ 212,923 $ 121, ,852 $ 201, ,399 Fund balance, beginning of year 1,213, ,914 Fund balance, end of year $ 1,536,165 $ 1,213,313 See Auditors' Report and Notes to Required Supplementary Information

60 NOTES TO REQUIRED SUPPLEMENTARY INFORMATION AS OF AND FOR THE YEAR ENDED JUNE 30, 2014 STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY Budgetary Data Except for the exclusion of on-behalf payments from other governments, discussed below, 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, Budget Reconciliations The Statement of Revenues, Expenditures and Changes in Fund Balance - Governmental Funds (GAAP basis) includes on-behalf payments received and made for the amounts contributed by the State of Illinois for the employer s share of the Teachers Retirement System pension. The District does not budget for these amounts in the Educational Accounts of the General Fund. The differences between the budget and GAAP basis are as follows: Revenues Expenditures General Fund Budgetary Basis $ 77,078,278 $ 67,759,750 To adjust for on-behalf payments received 8,752,043 - To adjust for on-behalf payments made - 8,752,043 General Fund GAAP Basis $ 85,830,321 $ 76,511,793 See Auditors' Report

61 DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL FOR THE YEAR ENDED JUNE 30, 2014 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2013 Revenues Local sources 2014 ORIGINAL BUDGET FINAL BUDGET ACTUAL VARIANCE WITH FINAL BUDGET 2013 ACTUAL General levy $ 1,518,355 $ 1,507,245 $ 1,491,101 $ (16,144) $ 1,744,218 Investment income (35) 49 Total local sources 1,518,405 1,507,281 1,491,102 (16,179) 1,744,267 State sources General state aid 900,000 2,500,000 3,164, ,602 1,910,000 Total state sources 900,000 2,500,000 3,164, ,602 1,910,000 Total revenues 2,418,405 4,007,281 4,655, ,423 3,654,267 Expenditures Debt services Interest on short term debt Other interest on short term debt 7,494 5,494-5,494 - Total 7,494 5,494-5,494 - Payments on long term debt Interest on long term debt 2,033,000 2,033,000 2,032, ,083,932 Principal payments on long term debt 2,142,000 2,142,000 2,141, ,063,343 Total 4,175,000 4,175,000 4,173,576 1,424 4,147,275 Other debt service Other objects - - 2,902 (2,902) 2,520 Total - - 2,902 (2,902) 2,520 Total debt services 4,182,494 4,180,494 4,176,478 4,016 4,149,795 Total expenditures 4,182,494 4,180,494 4,176,478 4,016 4,149,795 Excess (deficiency) of revenues over expenditures (1,764,089) (173,213) 479, ,439 (495,528)

62 DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL FOR THE YEAR ENDED JUNE 30, 2014 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2013 Other financing sources (uses) 2014 ORIGINAL BUDGET FINAL BUDGET ACTUAL VARIANCE WITH FINAL BUDGET 2013 ACTUAL Transfer from education accounts $ - $ 3,759,039 $ 3,759,039 $ - $ - Total other financing sources (uses) - 3,759,039 3,759, Net change in fund balance $ (1,764,089) $ 3,585,826 4,238,265 $ 652,439 (495,528) Fund balance, beginning of year 2,100,051 2,595,579 Fund balance, end of year $ 6,338,316 $ 2,100,

63 CAPITAL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL FOR THE YEAR ENDED JUNE 30, 2014 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2013 Revenues Local sources 2014 ORIGINAL BUDGET FINAL BUDGET ACTUAL VARIANCE WITH FINAL BUDGET 2013 ACTUAL Investment income $ 10,025 $ 29,682 $ 29,715 $ 33 $ 43,912 Gain or loss on sale of investments - 10,428 10, (61,994) Refund of prior years' expenditures ,800 Payments of surplus monies from TIF districts - 250, , ,000 Total local sources 10, , , ,718 State sources General state aid - 1,227,911 2,156, ,213 - Infrastructure improvements - planning/construction 2,355,000 2,355,612 2,355,612-1,214,174 Total state sources 2,355,000 3,583,523 4,511, ,213 1,214,174 Total revenues 2,365,025 3,874,033 4,802, ,417 1,448,892 Expenditures Support services Business Facilities acquisition and construction service Purchased services ,293 Capital outlay 4,059,469 5,850,350 2,909,075 2,941,275 12,243,921 Other objects - - 2,050 (2,050) 9,290 Total 4,059,469 5,850,350 2,911,125 2,939,225 12,326,504 Total business 4,059,469 5,850,350 2,911,125 2,939,225 12,326,504 Total support services 4,059,469 5,850,350 2,911,125 2,939,225 12,326,504 Total expenditures 4,059,469 5,850,350 2,911,125 2,939,225 12,326,

64 CAPITAL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL FOR THE YEAR ENDED JUNE 30, 2014 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2013 Other financing sources (uses) 2014 ORIGINAL BUDGET FINAL BUDGET ACTUAL VARIANCE WITH FINAL BUDGET 2013 ACTUAL Transfer to capital projects fund $ - $ 3,900,000 $ - $ (3,900,000) $ - Total other financing sources (uses) - 3,900,000 - (3,900,000) - Net change in fund balance $ (1,694,444) $ 1,923,683 1,891,325 $ (32,358) (10,877,612) Fund balance (deficit), beginning of year (1,160,120) 9,717,492 Fund balance (deficit), end of year $ 731,205 $ (1,160,120)

65 FIRE PREVENTION AND LIFE SAFETY FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL FOR THE YEAR ENDED JUNE 30, 2014 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2013 Revenues Local sources 2014 ORIGINAL BUDGET FINAL BUDGET ACTUAL VARIANCE WITH FINAL BUDGET 2013 ACTUAL General levy $ 41,713 $ 41,408 $ 41,360 $ (48) $ 45,077 Investment income (5) 1 Total local sources 41,718 41,413 41,360 (53) 45,078 Total revenues 41,718 41,413 41,360 (53) 45,078 Expenditures Support services Business Operation and maintenance of plant services Purchased services 140,516 20,516-20,516 80,516 Capital outlay - 430, ,953 14,047 - Total 140, , ,953 34,563 80,516 Total business 140, , ,953 34,563 80,516 Total support services 140, , ,953 34,563 80,516 Total expenditures 140, , ,953 34,563 80,516 Net change in fund balance $ (98,798) $ (409,103) (374,593) $ 34,510 (35,438) Fund balance, beginning of year 1,092,589 1,128,027 Fund balance, end of year $ 717,996 $ 1,092,

66 GENERAL FUND COMBINING BALANCE SHEET AS OF JUNE 30, 2014 EDUCATIONAL ACCOUNTS TORT IMMUNITY AND JUDGMENT ACCOUNTS WORKING CASH ACCOUNTS TOTAL Assets Cash and investments $ 21,250,503 $ 1,601,884 $ 226,850 $ 23,079,237 Receivables (net allowance for uncollectibles): Property taxes 1,507,860 3,258,256 37,697 4,803,813 Replacement taxes 545, ,217 Intergovernmental 7,217, ,217,619 Accounts 58, ,804 Due from joint agreements 2,689, ,689,360 Prepaid items - 240, ,646 Total assets $ 33,269,363 $ 5,100,786 $ 264,547 $ 38,634,696 Liabilities, deferred inflows of resources, and fund balance Liabilities Accounts payable $ 1,446,442 $ 3,034 $ - $ 1,449,476 Accrued salaries and payroll withholdings 4,438, ,438,827 Compensated absences - current 283, ,802 Total liabilities 6,169,071 3,034-6,172,105 Deferred inflows of resources Property taxes levied for a future period 832,179 1,798,214 20,805 2,651,198 Deferred revenue 685, ,527 Total deferred inflows of resources 1,517,706 1,798,214 20,805 3,336,725 Fund balance Nonspendable 2,930, ,930,006 Restricted - 3,299,538-3,299,538 Unassigned 22,652, ,742 22,896,322 Total fund balance 25,582,586 3,299, ,742 29,125,866 Total liabilities, deferred inflows of resources, and fund balance $ 33,269,363 $ 5,100,786 $ 264,547 $ 38,634,

67 GENERAL FUND COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2014 TORT IMMUNITY EDUCATIONAL AND JUDGMENT ACCOUNTS ACCOUNTS WORKING CASH ACCOUNTS TOTAL Revenues Property taxes $ 1,654,251 $ 3,369,039 $ 41,358 $ 5,064,648 Corporate personal property replacement taxes 2,818, ,818,816 State aid 56,179, ,179,546 Federal aid 20,300, ,300,627 Investment income 56, ,003 Gain or loss on sale of investments 16, ,959 Other 1,393, ,393,722 Total revenues 82,419,924 3,369,039 41,358 85,830,321 Expenditures Current: Instruction: Regular programs 22,105, ,105,233 Special programs 13,208, ,208,007 Other instructional programs 2,058, ,058,519 State retirement contributions 8,752, ,752,043 Support Services: Pupils 3,748, ,748,477 Instructional staff 3,201, ,201,293 General administration 4,340,660 1,020,604-5,361,264 School administration 4,463, ,463,398 Business 4,154, ,154,614 Transportation 10, ,737 Operations and maintenance 5,880, ,880,595 Central 1,221, ,221,319 Other supporting services 1,592, ,592,070 Community services 351, ,628 Payments to other districts and gov't units 21, ,728 Capital outlay 380, ,868 Total expenditures 75,491,189 1,020,604-76,511,793 Excess (deficiency) of revenues over expenditures 6,928,735 2,348,435 41,358 9,318,528 Other financing sources (uses) Transfer to debt service fund (3,759,039) - - (3,759,039) Total other financing sources (uses) (3,759,039) - - (3,759,039) Net change in fund balance 3,169,696 2,348,435 41,358 5,559,489 Fund balance, beginning of year 22,412, , ,384 23,566,377 Fund balance, end of year $ 25,582,586 $ 3,299,538 $ 243,742 $ 29,125,

68 EDUCATIONAL ACCOUNTS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL - NON- GAAP BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2014 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2013 Revenues Local sources 2014 ORIGINAL BUDGET FINAL BUDGET ACTUAL VARIANCE WITH FINAL BUDGET 2013 ACTUAL General levy $ 1,593,438 $ 1,581,779 $ 1,579,803 $ (1,976) $ 1,680,622 Leasing levy 41,713 41,408 41,282 (126) 67,991 Special education levy 33,370 33,126 33, ,395 Corporate personal property replacement taxes 3,231,227 3,136,227 2,818,816 (317,411) 2,746,947 Summer school - tuition from pupils or parents (in state) 219, , ,411 (304) 231,279 Investment income 27,806 41,594 56,003 14,409 32,399 Gain or loss on sale of investments - 15,000 16,959 1,959 (77,184) Other food service 125, , ,316 19, ,911 Admissions - athletic 30,487 30,487 23,926 (6,561) 24,705 Admissions - other - - 6,179 6, Fees - - 2,962 2,962 4,882 Rentals 274, , , , ,976 Contributions and donations from private sources 25,096 26,846 14,094 (12,752) - Impact fees from municipal or county governments - - 5,294 5,294 - Refund of prior years' expenditures - 165, ,332 34,332 14,305 Other 121,399 95, , , ,040 Total local sources 5,724,586 5,785,561 5,939, ,190 5,330,168 State sources General state aid 41,794,361 39,356,444 37,763,629 (1,592,815) 47,896,132 Other unrestricted grants-inaid from state source 3,000,000 3,000,000 3,000,000-9,000,000 Special education - private facility tuition 266, , ,800 48, ,069 Special education - extraordinary 919, , ,352 57,372 1,455,396 Special education - personnel 1,065,881 1,065,881 1,144,764 78,883 1,880,836 Special education - orphanage - individual 900,000 1,126,000 1,200,228 74, ,609 Special education - orphanage - summer 31,300 51,300 62,679 11,379 34,076 Special education - summer school 72,000 72, ,709 28,709 72,347 CTE - WECEP 158, , ,891 (31,319) 192,890 Bilingual education - downstate - TPI 14,000 24,030 9,164 (14,866) 12,900 State free lunch & breakfast 75,000 75,000 62,077 (12,923) 91,726 Driver education 9,000 9,000 15,184 6,184 13,

69 EDUCATIONAL ACCOUNTS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL - NON- GAAP BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2014 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, ORIGINAL BUDGET FINAL BUDGET ACTUAL VARIANCE WITH FINAL BUDGET 2013 ACTUAL Truant alternative/optional education $ 130,594 $ 126,350 $ 106,645 $ (19,705) $ 130,594 Early childhood - block grant 1,463,320 1,563,320 1,509,500 (53,820) 1,563,320 Other restricted revenue from state sources 720, , ,881 61, ,408 Total state sources 50,620,469 48,785,465 47,427,503 (1,357,962) 64,414,522 Federal sources Federal impact aid 84, , ,666 46,050 98,847 Head start ,239 50,239 50,239 National school lunch program 1,809,525 1,809,525 2,395, ,007 2,580,913 School breakfast program 683, , , , ,442 Summer food service admin/program 77,500-31,118 31,118 69,610 Child care commodity/sfs 13-adult day care - 99, ,671 11,671 4,631 Fresh fruits & vegetables 97,828 97, ,683 60, ,206 Food service - other , , ,043 Title I - Low income 8,514,453 9,478,230 9,096,111 (382,119) 7,897,332 Title I - Other 2,927,628 3,000, ,541 (2,606,761) 318,217 Title IV - 21st Century 430, , , , ,048 Federal - special education - IDEA - room & board ,064 Title I - low income ,879 Title I - school improvement (part g) , ,479 1,541,917 Race to the Top 291, , ,164 (116,644) 37,543 Title II - Teacher quality 1,770,382 1,929,874 2,139, ,553 1,923,785 Math and Science Partnership ,970 Medicaid matching funds - administrative outreach 300, , ,496 (134,504) 182,453 Medicaid matching funds - fee-for-service program , , ,057 Other restricted revenue from federal sources 220, ,000 2,849,759 2,573,759 1,278,284 Total federal sources 17,206,252 18,681,684 20,300,627 1,618,943 18,276,480 Total revenues 73,551,307 73,252,710 73,667, ,171 88,021,

70 EDUCATIONAL ACCOUNTS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL - NON- GAAP BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2014 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2013 Expenditures Instruction 2014 ORIGINAL BUDGET FINAL BUDGET ACTUAL VARIANCE WITH FINAL BUDGET 2013 ACTUAL Regular programs Salaries $ 20,425,616 $ 16,382,152 $ 16,224,729 $ 157,423 $ 17,816,062 Employee benefits 4,285,854 3,299,298 3,256,944 42,354 3,276,523 Purchased services 67, , ,123 (3,982) 109,055 Supplies and materials 489, , , , ,069 Capital outlay 8,250 4,742-4,742 22,696 Other objects 1,450 2,001 1, Termination benefits 673, , , , ,383 Total 25,951,796 21,125,078 20,293, ,794 22,273,513 Pre-K programs Salaries 887,042 1,110,382 1,009, ,852 1,087,024 Employee benefits 280, , , , ,470 Purchased services 25, ,854 3, ,910 2,413 Supplies and materials 24,436 34,905 31,019 3,886 39,100 Capital outlay - - 6,987 (6,987) - Termination benefits - 4,750 (64,226) 68,976 4,367 Total 1,216,708 1,705,738 1,133, ,557 1,374,374 Special education programs Salaries 3,940,097 3,901,596 4,525,102 (623,506) 5,342,337 Employee benefits 355, , ,089 (668,422) 861,405 Purchased services 30,609 30, ,963 16,110 Supplies and materials 57,205 59,530 50,920 8,610 35,576 Termination benefits 283, ,338 74, , ,770 Total 4,667,503 4,430,047 5,516,795 (1,086,748) 6,498,198 Remedial and supplemental programs K - 12 Salaries 2,271,836 2,441,381 1,986, ,762 2,249,545 Employee benefits 966,926 1,070, , ,087 1,107,953 Purchased services 63, , ,726 (62,143) 220,052 Supplies and materials 68, , ,338 (141,304) 88,611 Capital outlay - - (63,700) 63,700 - Termination benefits 97, Total 3,469,110 4,241,092 3,680, ,102 3,666,

71 EDUCATIONAL ACCOUNTS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL - NON- GAAP BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2014 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, ORIGINAL BUDGET FINAL BUDGET ACTUAL VARIANCE WITH FINAL BUDGET 2013 ACTUAL CTE programs Salaries $ 119,327 $ 211,704 $ 25,126 $ 186,578 $ 147,049 Employee benefits 82,030 49,603 3,546 46,057 22,764 Purchased services 18,787 19,240 6,766 12,474 14,892 Supplies and materials 36,135 25,108 92,468 (67,360) 28,187 Capital outlay ,933 (22,933) - Termination benefits - 37,548 33,042 4,506 34,671 Total 256, , , , ,563 Interscholastic programs Salaries 313, , ,944 26, ,142 Employee benefits 9,205 9,570 27,299 (17,729) 49,932 Purchased services 301, , ,731 42, ,283 Supplies and materials 182, , ,487 20, ,745 Capital outlay 22,004 19,862 16,066 3,796 34,952 Other objects 29,335 34,321 19,743 14,578 16,684 Termination benefits 94, Total 952, , ,270 90, ,738 Gifted programs Purchased services 4,500 4,500 3,029 1,471 - Supplies and materials 25,000 8,000 6,119 1,881 - Other objects 1,500 1, ,475 - Total 31,000 14,000 9,173 4,827 - Driver's education programs Other objects 5,000 5,000-5,000 - Total 5,000 5,000-5,000 - Regular K - 12 programs - private tuition Other objects 1,670,851 1,814,051 1,811,949 2,102 1,591,287 Total 1,670,851 1,814,051 1,811,949 2,102 1,591,287 Special education programs K private tuition Other objects 5,258,904 5,000,004 3,946,522 1,053,482 3,810,177 Total 5,258,904 5,000,004 3,946,522 1,053,482 3,810,177 Total instruction 43,479,571 39,546,837 37,354,045 2,192,792 40,217,

72 EDUCATIONAL ACCOUNTS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL - NON- GAAP BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2014 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2013 Support services Pupils 2014 ORIGINAL BUDGET FINAL BUDGET ACTUAL VARIANCE WITH FINAL BUDGET 2013 ACTUAL Attendance and social work services Salaries $ 860,000 $ 1,186,602 $ 1,025,382 $ 161,220 $ 1,252,701 Employee benefits 202, , , , ,986 Purchased services 106, ,740 48,034 53,706 66,321 Supplies and materials 53,175 57,665 43,866 13,799 2,043 Termination benefits 74, ,490 Total 1,297,075 1,659,752 1,307, ,763 1,591,541 Guidance services Salaries 1,091, , ,470 25,362 1,043,588 Employee benefits 281, , ,335 33, ,841 Termination benefits 57,203 76,958 67,723 9,235 42,306 Total 1,430, , ,528 68,366 1,253,735 Health services Salaries 176, , ,353 (32,863) 316,210 Employee benefits 43,683 44,540 53,445 (8,905) 50,450 Purchased services 483, , ,681 93, ,888 Total 703, , ,479 51, ,548 Psychological services Salaries 242, , ,171 (154,787) 393,812 Employee benefits 49,743 33,167 59,255 (26,088) 96,206 Total 292, , ,426 (180,875) 490,018 Speech pathology and audiology services Salaries 507, , ,788 (139,199) 596,859 Employee benefits 103,776 71,435 91,189 (19,754) 94,839 Purchased services 1,191 1, ,185 1,054 Termination benefits - 67,077 69,278 (2,201) 63,750 Total 612, , ,055 (159,969) 756,502 Total pupils 4,335,195 3,879,564 3,748, ,087 4,769,

73 EDUCATIONAL ACCOUNTS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL - NON- GAAP BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2014 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2013 Instructional staff 2014 ORIGINAL BUDGET FINAL BUDGET ACTUAL VARIANCE WITH FINAL BUDGET 2013 ACTUAL Improvement of instructional services Salaries $ 1,797,433 $ 1,519,948 $ 1,025,026 $ 494,922 $ 1,964,685 Employee benefits 370, , ,551 (48,805) 558,218 Purchased services 3,355,790 3,497, ,958 2,781, ,292 Supplies and materials 58,039 62, ,868 (150,036) 10,841 Other objects Termination benefits 167,829-19,500 (19,500) 13,118 Total 5,749,689 5,401,206 2,342,903 3,058,303 3,457,896 Educational media services Salaries 307, , ,493 14, ,021 Employee benefits 63,027 64,255 58,816 5,439 60,732 Purchased services 474, , , , ,264 Supplies and materials 241, , ,046 33, ,431 Capital outlay 115, , ,596 (10,051) 15,446 Total 1,201,894 1,348,133 1,143, , ,894 Assessment and testing Purchased services ,302 (75,302) 446 Supplies and materials Total ,302 (75,302) 1,271 Total instructional staff 6,951,583 6,749,339 3,561,889 3,187,450 4,421,061 General administration Board of education services Salaries 930, , , , ,008 Employee benefits 619, , ,934 19, ,994 Purchased services 833, , , , ,688 Supplies and materials 100,763 89,449 70,301 19,148 63,368 Other objects 156, , ,224 24,560 18,684 Termination benefits 17, ,313 Total 2,658,546 2,516,351 2,205, ,273 2,681,

74 EDUCATIONAL ACCOUNTS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL - NON- GAAP BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2014 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, ORIGINAL BUDGET FINAL BUDGET ACTUAL VARIANCE WITH FINAL BUDGET 2013 ACTUAL Executive administration services Salaries $ 467,200 $ 467,200 $ 517,281 $ (50,081) $ 519,881 Employee benefits 64,728 36,990 52,862 (15,872) 83,969 Purchased services 77,323 80,110 20,636 59,474 13,179 Supplies and materials 25,517 31,188 21,814 9,374 14,113 Capital outlay 1,000 1,000-1,000 - Other objects 16,894 16,894 5,279 11,615 5,665 Termination benefits 208, Total 860, , ,872 15, ,807 Special area administration services Salaries 5,534-51,666 (51,666) 36,423 Employee benefits 2,103-9,152 (9,152) 5,409 Purchased services 19,530 18,854 10,309 8,545 14,902 Supplies and materials 4,644 4,577 2,072 2,505 1,969 Termination benefits 131, Total 163,591 23,431 73,199 (49,768) 58,703 Tort immunity services Purchased services 1,362,380 1,503,001 1,443,193 59,808 1,303,355 Other objects - 1,400 1, (3,679) Total 1,362,380 1,504,401 1,444,511 59,890 1,299,676 Total general administration 5,045,430 4,677,565 4,340, ,905 4,676,241 School administration Office of the principal services Salaries 3,810,939 4,029,760 3,616, ,824 4,830,283 Employee benefits 673, , ,378 80, ,982 Purchased services 172, , ,590 40, ,921 Supplies and materials 37,690 38,158 11,778 26,380 10,752 Capital outlay 2,055 3,155-3,155 1,245 Termination benefits 461, ,862 69,285 72, ,207 Total 5,157,869 5,056,927 4,420, ,960 5,956,390 Other support services - school administration Salaries ,695 (36,695) 49,232 Employee benefits - - 5,736 (5,736) 7,952 Total ,431 (42,431) 57,184 Total school administration 5,157,869 5,056,927 4,463, ,529 6,013,

75 EDUCATIONAL ACCOUNTS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL - NON- GAAP BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2014 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2013 Business 2014 ORIGINAL BUDGET FINAL BUDGET ACTUAL VARIANCE WITH FINAL BUDGET 2013 ACTUAL Direction of business support services Purchased services $ - $ - $ 1,157 $ (1,157) $ - Total - - 1,157 (1,157) - Fiscal services Salaries 603, , ,679 (117,092) 624,150 Employee benefits 84,852 42,245 81,650 (39,405) 100,810 Purchased services 330, , , ,654 30,130 Supplies and materials 26,706 24,206 13,587 10,619 11,483 Capital outlay 4,566 4,584-4,584 1,985 Other objects 63,657 95,474 58,440 37,034 57,594 Termination benefits 99, Total 1,214, , ,969 96, ,152 Operation and maintenance of plant services Salaries 2,499,072 2,698,374 2,489, ,940 2,541,997 Employee benefits 561, , ,887 54, ,569 Purchased services 1,376,453 1,351,006 1,040, , ,567 Supplies and materials 2,417,791 2,280,971 1,751, ,795 1,667,308 Capital outlay 15,146 25,403 22,087 3,316 5,146 Termination benefits 23,642 2,261 56,431 (54,170) 29,394 Total 6,893,698 6,955,047 5,902,682 1,052,365 5,636,981 Pupil transportation services Salaries 24,086 23,162 4,503 18,659 51,533 Employee benefits 9,142 9, ,181 8,209 Purchased services 6,115 3,461 5,860 (2,399) 1,079 Termination benefits 8, Total 47,855 36,178 10,737 25,441 60,821 Food services Salaries 4,909-9,227 (9,227) 3,755 Purchased services 2,700,158 2,670,733 3,038,793 (368,060) 3,057,279 Supplies and materials ,760 (10,760) 1,776 Capital outlay - 6,500 5,481 1,019 - Total 2,705,067 2,677,233 3,064,261 (387,028) 3,062,

76 EDUCATIONAL ACCOUNTS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL - NON- GAAP BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2014 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, ORIGINAL BUDGET FINAL BUDGET ACTUAL VARIANCE WITH FINAL BUDGET 2013 ACTUAL Internal services Salaries $ 209,070 $ 209,495 $ 209,495 $ - $ 241,858 Employee benefits 28,334 28,874 31,516 (2,642) 39,064 Purchased services 6,897 9,902 5,597 4,305 5,119 Supplies and materials 55,117 55,219 42,010 13,209 43,488 Capital outlay (682) - Other objects Central Total 299, , ,390 14, ,599 Total business 11,160,372 10,874,411 10,074, ,215 9,916,363 Direction of central support services Salaries ,354 (116,354) 80,042 Employee benefits ,730 (38,730) 26,059 Purchased services ,332 (665,332) 779,075 Supplies and materials ,091 Total ,416 (820,416) 886,267 Planning, research, development and evaluation services Salaries 38,752 53,589 57,013 (3,424) 34,275 Employee benefits 16,663 19,873 7,768 12,105 8,620 Purchased services 1,400 4, ,404 (107,609) 18,591 Supplies and materials 10,440 10,000 5,795 4,205 1,775 Total 67,255 88, ,980 (94,723) 63,261 Information services Purchased services 22,513 21,490 7,298 14,192 20,802 Total 22,513 21,490 7,298 14,192 20,802 Staff services Salaries 146, , ,712 17, ,901 Employee benefits 26,181 26,091 15,170 10,921 37,624 Purchased services 24,735 99,535 40,569 58,966 29,625 Supplies and materials 25,066 25,465 15,853 9,612 13,003 Termination benefits 12,041-6,332 (6,332) 26,986 Total 234, , ,636 90, ,

77 EDUCATIONAL ACCOUNTS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL - NON- GAAP BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2014 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, ORIGINAL BUDGET FINAL BUDGET ACTUAL VARIANCE WITH FINAL BUDGET 2013 ACTUAL Data processing services Purchased services $ 6,066 $ 3,997 $ 1,090 $ 2,907 $ 19,378 Supplies and materials 6,047 5,001 1,899 3, Total 12,113 8,998 2,989 6,009 20,126 Total central 336, ,293 1,221,319 (804,026) 1,312,595 Other supporting services Salaries 41, , ,992 (98,171) 42,285 Employee benefits 17,879 77,467 89,838 (12,371) 12,313 Purchased services 1,669,909 1,389,927 1,215, ,250 1,096,018 Supplies and materials 20,300 18,350 20,563 (2,213) 15,713 Total 1,749,668 1,653,565 1,592,070 61,495 1,166,329 Total support services 34,736,628 33,308,664 29,002,009 4,306,655 32,275,507 Community services Salaries 60,868 78,664 79,446 (782) 161,619 Employee benefits 20,508 17,890 8,656 9,234 40,990 Purchased services 202, , ,970 58, ,538 Supplies and materials 130,960 37,333 9,556 27,777 14,672 Capital outlay - - 9,736 (9,736) - Termination benefits 7, Total community services 422, , ,364 85, ,819 Payments to other districts and governmental units Payments for regular programs Purchased services 6,000 64,520 21,728 42,792 28,339 Total 6,000 64,520 21,728 42,792 28,339 Other payments to instate governmental units Other objects ,583 Total ,583 Total payments to other districts and governmental units 6,000 64,520 21,728 42,792 63,922 Total expenditures 78,644,634 73,366,473 66,739,146 6,627,327 72,910,

78 EDUCATIONAL ACCOUNTS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL - NON- GAAP BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2014 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, ORIGINAL BUDGET FINAL BUDGET ACTUAL VARIANCE WITH FINAL BUDGET 2013 ACTUAL Excess (deficiency) of revenues over expenditures $ (5,093,327) $ (113,763) 6,928,735 $ 7,042,498 15,110,911 Other financing sources (uses) Transfer to capital projects fund - (3,900,000) - 3,900,000 - Transfer to debt service fund - (3,759,039) (3,759,039) - - Total other financing sources (uses) - (7,659,039) (3,759,039) 3,900,000 - Net change in fund balance $ (5,093,327) $ (7,772,802) 3,169,696 $ 10,942,498 15,110,911 Fund balance, beginning of year 22,412,890 7,301,979 Fund balance, end of year $ 25,582,586 $ 22,412,

79 TORT IMMUNITY AND JUDGMENT ACCOUNTS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL FOR THE YEAR ENDED JUNE 30, 2014 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2013 Revenues Local sources 2014 ORIGINAL BUDGET FINAL BUDGET ACTUAL VARIANCE WITH FINAL BUDGET 2013 ACTUAL Tort immunity levy $ 3,186,877 $ 3,163,558 $ 3,369,039 $ 205,481 $ 3,158,431 Investment income (20) 45 Total local sources 3,186,897 3,163,578 3,369, ,461 3,158,476 Total revenues 3,186,897 3,163,578 3,369, ,461 3,158,476 Expenditures Support Services General administration Workers' compensation or workers' occupational disease act payments Other objects 900, , , , ,813 Total 900, , , , ,813 Unemployment insurance payments Purchased services ,030 (370,030) 1,771,445 Other objects 1,855,760 1,600,497-1,600,497 - Total 1,855,760 1,600, ,030 1,230,467 1,771,445 Insurance payments (regular or selfinsurance Purchased services - - (3,000) 3, ,476 Total - - (3,000) 3, ,476 Judgment and settlements Other objects 150,093 20,115 5,000 15, Total 150,093 20,115 5,000 15, Educational, inspectional, supervisory services related to loss prevention or reduction Purchased services ,376 Total ,

80 TORT IMMUNITY AND JUDGMENT ACCOUNTS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL FOR THE YEAR ENDED JUNE 30, 2014 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, ORIGINAL BUDGET FINAL BUDGET ACTUAL VARIANCE WITH FINAL BUDGET 2013 ACTUAL Legal services Purchased services $ - $ - $ 282 $ (282) $ (31,747) Other objects 275, Total 275, (31,747) Total general administration 3,182,091 2,496,627 1,020,604 1,476,023 2,951,478 Total expenditures 3,182,091 2,496,627 1,020,604 1,476,023 2,951,478 Net change in fund balance $ 4,806 $ 666,951 2,348,435 $ 1,681, ,998 Fund balance, beginning of year 951, ,105 Fund balance, end of year $ 3,299,538 $ 951,

81 WORKING CASH ACCOUNTS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL FOR THE YEAR ENDED JUNE 30, 2014 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2013 Revenues Local sources 2014 ORIGINAL BUDGET FINAL BUDGET ACTUAL VARIANCE WITH FINAL BUDGET 2013 ACTUAL General levy $ 41,713 $ 41,408 $ 41,358 $ (50) $ 45,077 Investment income Total local sources 41,713 41,408 41,358 (50) 45,078 Total revenues 41,713 41,408 41,358 (50) 45,078 Expenditures Total expenditures Net change in fund balance 41,713 41,408 41,358 (50) 45,078 Net change in fund balance $ 41,713 $ 41,408 41,358 $ (50) 45,078 Fund balance, beginning of year 202, ,306 Fund balance, end of year $ 243,742 $ 202,