PROVISO AREA FOR EXCEPTIONAL CHILDREN ......rel630 990 3131 fax 630 990 0039 bakenilly.com We have audited the accompanying financial statements of the governmental activities, each

PROVISO AREA FOREXCEPTIONAL CHILDREN -

DISTRICT SEJA 803

FINANCIAL STATEMENTS

AS OF AND FOR THE YEAR ENDEDJUNE 30, 2015

ANDINDEPENDENT AUDITORS' REPORT

PROVISO AREA FOR EXCEPTIONAL CHILDRENDISTRICT SEJA 803

AS OF AND FOR THE YEAR ENDED JUNE 30, 2015TABLE OF CONTENTS

PAGE(S)

Independent Auditor’s 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........................................................................................ 14 - 15

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.................................................................... 17 - 18

Reconciliation of the Governmental Funds Statementof 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 ........................................................................................... 21 - 42

Required Supplementary Information:

Illinois Municipal Retirement Fund –Schedule of Changes in the District’s Net Pension LiabilityAnd Related Ratios ................................................................................................................................... 43

Illinois Municipal Retirement Fund – Schedule of District Contributions .................................................. 44

Teachers’ Retirement System -Schedule of the District’s Proportionate Share of the Collective Net PensionLiability and Schedule of District Contributions......................................................................................... 45

Schedule of Funding Progress for Post-Retirement Health Benefit Plan ................................................................................................................................... 46

General and Major Special Revenue Funds – Schedule of Revenues, Expenditures and Changes in Fund Balance. - Budget and Actual:

General Fund – Non GAAP Budgetary Basis........................................................................................ 47 - 55



PAGE(S)Required Supplementary Information (Concluded):

Operations and Maintenance Fund – Non GAAP Budgetary Basis ...................................................... 56

Transportation Fund – Non GAAP Budgetary Basis ............................................................................. 57

Notes to Required Supplementary Information ..................................................................................... 58

Other Information:

Agency Fund – Student Activity Fund – Schedule ofChanges in Assets and Liabilities......................................................................................................... 59

Summary of Reserved Fund Balances (Deficits) .................................................................................. 60 - 61

Advances from Member Districts and Allocationof Net Expenditures to Member Districts – Non GAAP Cash Basis..................................................... 62 - 63

Allocation of Net Expenditures toMember Districts – Educational Fund – Non GAAP Cash Basis .......................................................... 64 - 65

Allocation of Net Adjusted InstructionalExpenditures – Educational Fund – Non GAAP Cash Basis................................................................. 66 - 70

Net Adjusted Instructional Expenditures for Allocation to Member Districts – Educational Fund – Non GAAP Cash Basis...................................... 71 - 72

Allocation of Net AdjustedRelated Services Expenditures – Educational Fund – Non GAAP Cash Basis .................................... 73 - 76

Net Adjusted Related Services Expenditures forAllocation to Member Districts – Educational Fund – Non GAAP Cash Basis...................................... 77 - 78

Allocation of Net Administrative Expenditures – Educational Fund – Non GAAP Cash Basis ............. 79 - 80

Net Administrative Expenditures forAllocation to Member Districts – Educational Fund – Non GAAP Cash Basis...................................... 81

Allocation of Net Expenditures to Member Districts – Operations and Maintenance Fund – Non GAAP Cash Basis ............................... 82 - 83

Net Expenditures for Allocation toMember Districts – Operations and Maintenance Fund – Non GAAP Cash Basis ............................... 84 - 85

Net Expenditures for Allocation toMember Districts – Transportation Fund – Non GAAP Cash Basis ...................................................... 86

Summary of Net Contractual TransportationCosts Incurred by Districts – Transportation Fund – Non GAAP Cash Basis ....................................... 87

Nonmember Districts – Statement of Receipts,Expenditures and Changes in Fund Balance – Non GAAP Cash Basis ............................................... 88 - 89



Other Information (Concluded):

Summary of Cost Distribution Factors .................................................................................................. 90 - 91

INDEPENDENT AUDITORS' REPORT

To the Board of Education Proviso Area for Exceptional Children - District SEJA 803 Maywood, Illinois

Report on the Financial Statements

Baker Tilly Virchow Krause, LLP 1301 W 22nd Sr, Ste 400 Oak Brook, IL 60523-3389 rel630 990 3131 fax 630 990 0039 bakenilly.com

We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Proviso Area for Exceptional Children - District SEJA 803, as of and for the year ended June 30, 2015, and the related notes to the financial statements, which collectively comprise Proviso Area for Exceptional Children - District SEJA 803'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 f inancial 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 Proviso Area for Exceptional Children - District SEJA 803'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 Proviso Area for Exceptional Children - District SEJA 803'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.

~ anindependentmemberol BAKER TILLY INTERNATIONAL - 1 - An Affirmative Action Equal Opportunity Employe r

To the Board of Education Proviso Area for Exceptional Children - District SEJA 803

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 Proviso Area for Exceptional Children - District SEJA 803 as of June 30, 2015 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.

Emphasis of Matter

As discussed in Note 3, Proviso Area for Exceptional Children - District SEJA 803 adopted the provisions of GASB Statement No. 68, Accounting and Financial Reporting for Pension - an Amendment of GASB Statement No. 27, effective July 1, 2014. Net position as of June 30, 2014 has been restated as a result. Our opinions are not modified with respect to this matter.

Also, as discussed in Note 3, Proviso Area for Exceptional Children - District SEJA 803 adopted the provisions of GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date- an Amendment of GASB Statement No. 68, effective July 1, 2014. Net position as of June 30, 2014 has been restated as a result. 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.

Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise Proviso Area for Exceptional Children - District SEJA 803's basic financial statements. The other information as listed in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it.

Prior-Year Comparative Information

We have previously audited Proviso Area for Exceptional Children- District SEJA 803's 2014 financial statements, and we expressed unmodified audit opinions on the respective financial statements of the governmental activities, each major fund, and the aggregate remaining fund information in our report dated November 19, 2014. In our opinion, the summarized comparative information presented herein as of and for the year ended June 30, 2014, is consistent, in all material respects, with the audited financial statements from which it has been derived.

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To the Board of Education Proviso Area for Exceptional Children - District SEJA 803

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated November 30, 2015 on our consideration of Proviso Area for Exceptional Children - District SEJA 803'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 Proviso Area for Exceptional Children - District SEJA 803's internal control over financial reporting and compliance.

/J~T~V~ ~1LLfJ Oak Brook, Illinois November 30, 2015

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Proviso Area for Exceptional Children - District SEJA 803Management's Discussion and Analysis (Unaudited)As of and for the Year Ended June 30, 2015

The discussion and analysis of Proviso Area for Exceptional Children - District SEJA 803’s (the "District")financial performance provides an overall review of the District’s financial activities as of and for the yearended June 30, 2015. The management of the District encourages readers to consider the informationpresented herein in conjunction with the basic financial statements to enhance their understanding of theDistrict’s financial performance. All amounts, unless otherwise indicated, are expressed in millions ofdollars. Certain comparative information between the current year and the prior is required to bepresented in the Management’s Discussion and Analysis (the “MD&A”).

Financial Highlights

In total, net position increased by $1.5. This represents a 58% decrease from 2014. The increasewas due to an increase in state and federal grant receivables at year end that were not factoredinto the calculation of refunds or additional billings to member Districts.

Overview of the Financial Statements

This discussion and analysis is intended to serve as an introduction to the District’s basic financialstatements. 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 theDistrict’s finances, in a manner similar to a private-sector business.

The statement of net position presents information on all of the District’s assets/deferred outflows ofresources and liabilities/deferred inflows of resources, with the difference between them reported as netposition. Over time, increases or decreases in net position may serve as a useful indicator of whether thefinancial position of the District is improving or deteriorating.

The statement of activities presents information showing how the government’s net position changedduring the fiscal year being reported. All changes in net position are reported as soon as the underlyingevent giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues andexpenses are reported in this statement for some items that will only result in cash flows in future fiscalperiods.

The government-wide financial statements present the functions of the District that are principallysupported by intergovernmental revenues (governmental activities). The District has no business-typeactivities; that is, functions that are intended to recover all or a significant portion of their costs throughuser fees and charges. The District’s governmental activities include instructional services (specialeducation and other), supporting services, operation and maintenance of facilities and transportationservices.

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Fund financial statements

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

Governmental funds are used to account for essentially the same functions reported as governmentalactivities in the government-wide financial statements. However, unlike the government-wide financialstatements, governmental fund financial statements focus on near-term inflows and outflows of spendableresources, as well as on balances of spendable resources available at the end of the fiscal year. Suchinformation 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 financialstatements, it is useful to compare the information presented for governmental funds with similarinformation presented for governmental activities in the government-wide financial statements. By doingso, 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, expendituresand changes in fund balances provide a reconciliation to facilitate this comparison between governmentalfunds and governmental activities.

The District maintains three individual governmental funds. Information is presented separately in thegovernmental fund balance sheet and in the governmental fund statement of revenues, expenditures andchanges in fund balances for the General Fund, Operations and Maintenance Fund, and TransportationFund, 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 schedulehas been provided for each fund to demonstrate compliance with this budget.

Fiduciary funds are used to account for resources held for the benefit of parties outside the School District.Fiduciary funds are not reflected in the government-wide financial statement because the resources ofthose funds are not available to support the District’s own programs. The accounting used for fiduciaryfunds 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 fullunderstanding 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 certainrequired supplementary information concerning the District’s progress in funding its obligation to providepension benefits to its non-certified employees.

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Government-Wide Financial Analysis

The District’s combined net position (after restatement) was higher on June 30, 2015, than it was the yearbefore, increasing 58% to $(1.1).

Table 1Condensed Statements of Net Position(in millions of dollars)

2014* 2015

Assets:Current and other assets $ 2.9 $ 2.7Capital Assets 3.5 3.4

Total assets 6.4 6.1

Total deferred outflows of resources - 1.3

Liabilities:Current liabilities 3.1 1.4Long-term liabilities 0.1 5.5

Total liabilities 3.2 6.9

Total deferred inflows of resources - 1.6

Net position:Net investment in capital assets 3.5 3.4Restricted 0.3 0.9Unrestricted (deficit) (0.6) (5.4)

Total net position $ 3.2 $ (1.1)

* Prior year information has not been updated for the District's implementation of GASB Statement No.68 and 71 in fiscal year 2014.

Revenues in the governmental activities of the District of $34.5 exceeded expenses by $1.5.

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

2014* 2015

Revenues:

Program revenues:Charges for services $ 18.3 $ 20.2Operating grants & contributions 12.3 14.2

General revenues:Other 0.2 0.1

Total revenues 30.8 34.5

Expenses:Instruction 11.8 11.1Related Services 8.2 8.2Administrative 3.0 3.2Operations and Maintenance 0.9 1.0Transportation 6.0 5.4Other 2.7 4.1

Total expenses 32.6 33.0

Decrease in net position $ (1.8) $ 1.5


The District is funded by the following sources - payments from member and non-member school districts,state and federal funds. Six member districts comprise the cooperative. These districts are responsible forall costs that are not reimbursable through state, federal and other local funds. As such, revenues shouldapproximate expenses each year. For the current year, there was not a significant difference in thepercentage of fund by type as compared to last year.

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Financial Analysis of the District’s Funds

The District’s Governmental Funds balance increased from $(0.1) to $1.3.

General Fund Budgetary Highlights

The General Fund's overall revenues were under budget by $.1. The General Fund's overall expenditureswere under budget by $.8.

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Capital Assets and Debt Administration

Capital assets

By the end of 2015, the District had compiled a total investment of $7.7 ($3.4 net of accumulateddepreciation) in a broad range of capital assets including buildings, land and equipment. Totaldepreciation expense for the year was $0.2. More detailed information about capital assets can be foundin Note 5 of the basic financial statements.

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

2014 2015

Land $ 0.3 $ 0.3Buildings and Land Improvements 3.0 3.0Equipment and Furniture 0.2 0.1

Total $ 3.5 $ 3.4

Long-term debt

The District net pension liability, OPEB liability and other were increased by $5.4 during the year. Moredetailed information on long-term debt can be found in Note 7 of the basic financial statements.

Table 4Outstanding Long-Term Debt(in millions of dollars)

2014* 2015

Net pension liability, OPEB liability and other $ 0.1 $ 5.5

Total $ 0.1 $ 5.5


Factors Bearing on the District’s Future

PAEC implemented a new student data system, “Common Goal” in order to enhance student datamanagement and communication. Ongoing training to staff will be provided. Student data has beenentered in the system so that information can be shared across departments and sorted into needed datareports including: lesson plans, health records, and daily attendance. In the future, the state lunch reportswill be organized through the Common Goal System for better efficiency.

Quality Control Committees meet monthly in order to assess the effectiveness of programs and servicesbased on relevant student information and data.

There were well-planned priority staff training sessions scheduled throughout the year to enhance theeffectiveness of PAEC programs and services to students.

Plans are in place to evaluate and update PAEC’s local school wellness policy to ensure compliance withthe Child Nutrition Program and also to ensure PAEC staff receive Civil Rights & Food HandlerTrainings.

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A PAEC Goal of Commitment to Technology will continue into the 2015-2016 fiscal year. PAEC isdevoting a lot of time to reorganizing and expanding its website to expand communication. Computerequipment will continue to be upgraded as needed.

PAEC will continue to address the crisis planning and school safety by conducting school incidentcommand training and developing staff roles and responsibilities for Crisis Management. A CooperativeSafety Committee will continue to review potential safety concerns and enhance staff training to reduceand prevent injuries and control workers’ compensation costs. Cameras have been installed at strategiclocations both inside and outside of the building to facilitate safety and security for staff and students. Anemergency telephone contact system was put in place in the 2011-2012 school year and continues to beupdated.

PAEC will continue to offer wellness screenings to employees contingent on EBC Medical Cooperativefunding. PAEC will begin meeting with the established Wellness Committee to set goals and furtherwellness awareness with PAEC staff and provide employees with incentives to participate in the annualwellness screening.

PAEC Administration will continue to review all transportation routes and other special studenttransportation to ascertain safer and more efficient use of transportation funds. Monthly meetings arescheduled with the transportation company and surveys to parents will be disseminated quarterlythroughout the year to monitor quality of services and parent feedback.

PAEC will continue to address a goal of strengthening internal controls regarding financial services withthe Proviso Township Treasurer’s Office and also with PAEC’s human resources and payroll systems.

In order to save budgeted funds in PAEC’s Educational Fund, cash balances in the student activity fundwill be reviewed for possible purchasing of supplies and materials for students throughout the school year.

PAEC has a Vocational/Transition Program and a Custodial Work Training Program for High SchoolStudents. Students receive training and experience in various locations which can lead to community-based employment.

PAEC will continue to offer quality extra-curricular programs/activities to positively engage studentsoutside the regular school session including HOTSTUFF After-School and Summer programs, SpecialOlympics, Special Recreation, Veterans’ Park, CAAEL Athletic League.

Continue to alert staff about the Employee Assistance Program (EAP) sponsored by the Reliance LifeInsurance Company and provide information about, and assistance with, the program to staff.

PAEC staff will continue to receive repeated training on CPI strategies and interventions in order tosupport effective behavior management, team approaches to behavior intervention, de-escalationtechniques and safe physical management for students that exhibit challenging behavior.

PAEC will begin the process of updating the employee handbook and non-bargaining unit salaryschedules and continue to update job descriptions for PAEC staff.

The Business Office will continue to review business office forms to convert them to electronic submissionvia the PAEC website.

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Requests for Information

This financial report is designed to provide the District’s citizens, taxpayers, and creditors with a generaloverview of the District’s finances and to demonstrate the District’s accountability for the money itreceives. If you have questions about this report, or need additional financial information, contact theBusiness Office:

Proviso Area for Exceptional Children - District SEJA 8031000 Van Buren StreetMaywood, IL 60153

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See Notes to Basic Financial Statements- 12 -

GOVERNMENTALACTIVITIES

Assets

Cash and investments 510,072$ Receivables (net of allowance for uncollectibles) Intergovernmental 1,934,726 Tuition 255,576 Net pension asset 13,187 Capital Assets:

Land 267,124 Depreciable buildings, property, and equipment, net 3,108,085

Total assets 6,088,770

Deferred outflows of resourcesDeferred outflows related to pensions 1,283,063

Liabilities

Accounts payable 976,077 Salaries and wages payable 218,547 Payroll deductions 367 Payable to member districts 233,267 Long-term liabilities - due within one year 15,019 Long-term liabilities - due after one year 5,460,494

Total liabilities 6,903,771

Deferred inflows of resources

Deferred inflows related to pensions 1,553,679

Net position

Net investment in capital assets 3,375,209 Restricted for:

Instruction and administration 884,700 Student transportation 121,248

Unrestricted (deficit) (5,466,774)

Total net position (1,085,617)$

PROVISO AREA FOR EXCEPTIONAL CHILDREN DISTRICT SEJA 803

STATEMENT OF NET POSITIONAS OF JUNE 30, 2015



STATEMENT OF ACTIVITIESFOR THE YEAR ENDED JUNE 30, 2014

NET (EXPENSES)REVENUE ANDCHANGES IN

PROGRAM REVENUES NET POSITIONOPERATING

CHARGES FOR GRANTS AND GOVERNMENTALEXPENSES SERVICES CONTRIBUTIONS ACTIVITIES

Instruction 11,096,985$ 8,418,883$ 2,581,732$ (96,370)$ Related services 8,166,422 6,235,333 2,725,680 794,591 Administrative 3,162,382 2,188,910 947,262 (26,210) Operations and maintenance 963,920 863,271 20,554 (80,095) Transportation 5,476,276 2,451,957 3,803,390 779,071 State retirement contribution 4,116,682 - 4,116,682 -

32,982,667$ 20,158,354$ 14,195,300$ 1,370,987

General revenues:Investment earnings 23,245 Miscellaneous 127,154

Subtotal, general revenues 150,399

Change in net position 1,521,386 Net position

Net position, beginning of year (as restated) (2,607,003)

Net position, end of year (1,085,617)$


GENERAL OPERATIONS AND(EDUCATIONAL) MAINTENANCE TRANSPORTATION

Assets

Cash and investments on deposit with the Township Treasurer 403,357$ 73,238$ 25,077$

Imprest and petty cash 7,640 650 110 Receivables (net of allowance for uncollectibles): Due from member districts - - - Intergovernmental 1,007,938 - 926,788 Tuition 255,576 - -

Total assets 1,674,511$ 73,888$ 951,975$

Liabilities and fund balance

Accounts payable 167,542$ 2,885$ 805,650$ Salaries and wages payable 218,547 - - Payroll deductions payable 367 - - Payable to member districts 155,590 56,100 21,577

Total liabilities 542,046 58,985 827,227

Fund balance

Restricted 884,700 - 121,248 Assigned 247,765 17,138 3,500 Unassigned (deficit) - (2,235) -

Total fund balance (deficit) 1,132,465 14,903 124,748

Total liabilities and fund balance 1,674,511$ 73,888$ 951,975$

PROVISO AREA FOR EXCEPTIONAL CHILDRENDISTRICT SEJA 803GOVERNMENTAL FUNDS

BALANCE SHEETAS OF JUNE 30, 2015

WITH COMPARATIVE TOTALS FOR JUNE 30, 2014


TOTAL2015 2014

501,672$ 2,330,439$ 8,400 8,400

- 3,412 1,934,726 411,077

255,576 234,781

2,700,374$ 2,988,109$

976,077$ 771,284$ 218,547 215,374

367 - 233,267 2,099,182

1,428,258 3,085,840

1,005,948 333,365 268,403 234,667

(2,235) (665,763)

1,272,116 (97,731)

2,700,374$ 2,988,109$


Total fund balances - governmental funds 1,272,116$

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

The cost of capital assets (land, buildings, furniture and equipment) purchasedor constructed is reported as an expenditure in governmental funds. The Statement of Net Position includes those capital assets among the assetsof the District as a whole.

Cost of capital assets 7,696,494$ Depreciation expense to date (4,321,285)

3,375,209

Net pension asset recognized in the Statement of Net Position does not provide current financial resources and is not included as an asset in the Governmental Fund Balance Sheet. 13,187

Deferred outflows of resources related to pensions do not relate to current financial resources and are not included in the Governmental Funds Balance Sheet. 1,283,063

Deferred inflows of resources related to pensions do not relate to current financial resources and are not included in the Governmental Funds Balance Sheet. (1,553,679)

Certain liabilities applicable to the District's governmental activitiesare not due and payable in the current period, and accordingly, are not reported as fund liabilities. All liabilities - both current and long-termare reported in the Statement of Net Position.

Balances at June 30, 2014 are attributable to:Compensated absences (15,019) Net pension liability (5,342,783) Net OPEB liability (117,711)

(5,475,513)

Net position of governmental activities (1,085,617)$


RECONCILIATION OF THE GOVERNMENTAL FUNDSBALANCE SHEET TO THE STATEMENT OF NET POSITION

AS OF JUNE 30, 2015


OPERATIONSGENERAL AND

(EDUCATIONAL) MAINTENANCE TRANSPORTATION

RevenuesAdvances from member districts 16,755,278$ 860,439$ 2,451,957$ Intergovernmental: On-behalf payments 4,116,682 - - Other state funding sources 1,849,904 - 3,803,575 Federal funding sources 4,057,573 222,626 - Advance from non-member districts 82,488 2,832 - Interest on investments 17,328 316 5,601 Food service 150,300 - - Other 126,555 599 -

Total revenues 27,156,108 1,086,812 6,261,133

ExpendituresCurrent: Instructional 10,837,811 - - On-behalf payments 4,116,682 - - Related services 8,193,178 - - Administrative 3,168,851 - - Operations and maintenance - 897,746 - Transportation - - 5,455,816 Refunds to member districts 155,595 56,100 21,579 Capital outlay 99,906 130,942 - Total expenditures 26,572,023 1,084,788 5,477,395

Net change in fund balance 584,085 2,024 783,738

Fund balance (deficit), beginning of year 548,380 12,879 (658,990)

Fund balance (deficit), end of year 1,132,465$ 14,903$ 124,748$

PROVISO AREA FOR EXCEPTIONAL CHILDRENDISTRICT SEJA 803GOVERNMENTAL FUNDS

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCESFOR THE YEAR ENDED JUNE 30, 2015

WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2014


TOTAL2015 2014

20,067,674$ 18,192,137$

4,116,682 2,687,275 5,653,479 5,386,249 4,280,199 4,106,183

85,320 109,969 23,245 25,915

150,300 151,873 127,154 154,685

34,504,053 30,814,286

10,837,811 10,795,593 4,116,682 2,687,275 8,193,178 7,903,285 3,168,851 2,789,947

897,746 876,020 5,455,816 5,057,870

233,274 2,095,779 230,848 138,315

33,134,206 32,344,084

1,369,847 (1,529,798)

(97,731) 1,432,067

1,272,116$ (97,731)$


Net change in fund balances - total governmental funds 1,369,847$

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

Capitalizable expenditures are reported in governmental funds as capital outlay expenditures. However, in the Statement of Activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which depreciation exceeds capitalizable expenditures in the current period.

Depreciation expense (234,419)$ Capitalizable expenditures included in capital outlay 144,940

(89,479)

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

Net pension asset (297,572) Net pension liability 1,410,632 Deferred outflows of resources due to pensions 714,242 Deferred inflows of resources due to pensions (1,553,679) Net OPEB liability (32,605)

Change in net position of governmental activities 1,521,386$


RECONCILIATION OF THE GOVERNMENTAL FUNDSSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2015


STUDENTACTIVITY

FUND

Assets

Cash and Investments 40,113$

Liabilities

Due to student groups 40,113$


STATEMENT OF FIDUCIARY ASSETS AND LIABILITIESAGENCY FUND

AS OF JUNE 30, 2015

PROVISO AREA FOR EXCEPTIONAL CHILDREN - DISTRICT SEJA 803NOTES TO BASIC FINANCIAL STATEMENTS

AS OF AND FOR THE YEAR ENDED JUNE 30, 2015

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Proviso Area for Exceptional Children - District SEJA 803 District SEJA 803 (the “District”) operates aspecial education joint agreement between School Districts 87, 88, 89, 92, 93 and 209 (Member Districts)located in Proviso Township, Cook County, Illinois. It was organized in 1957 to provide special educationfor exceptional children residing in these districts. a public school system governed by a six-member board.

The accounting policies of the District conform to accounting principles generally accepted in the UnitedStates of America, as applicable to local governmental units of this type. The following is a summary of themore 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 theprimary government and its component units. Component units are legally separate organizations for whichthe primary government is financially accountable or other organizations for which the nature andsignificance of their relationship with the primary government are such that their exclusion would cause thereporting entity's financial statements to be misleading. The District has not identified any organizationsthat 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 hasbeen removed from these statements. The District’s operating activities are all considered “governmentalactivities”, that is, activities normally supported by intergovernmental revenues. The District has nooperating activities that would be considered “business activities”.

The statement of activities demonstrates the degree to which the direct expenses of a given function areoffset 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 programand (2) grants and contributions that are restricted to meeting the operational or capital requirements of aparticular function. Other items not properly included among program revenues are reported instead asgeneral revenues.

Governmental Funds Financial Statements

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

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

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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 financialstatements 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 thetiming of related cash flows. Grants and similar items are recognized as revenue when all eligibilityrequirements have been met.

Governmental fund financial statements are reported using the flow of current financial resourcesmeasurement focus and the modified accrual basis of accounting. Revenues are recognized when they areboth "measurable and available". "Measurable" means that the amount of the transaction can bedetermined, and "available" means collectible within the current period or soon enough thereafter to payliabilities of the current period. For this purpose, the District considers all revenues available if they arecollected within 60 days after year-end. Expenditures are recorded when the related fund liability isincurred. However, expenditures for unmatured principal and interest on general long-term debt arerecognized when due; and certain compensated absences, claims and judgments are recognized when theobligations 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 exceptthose required to be accounted for in another fund. This fund is primarily used for most of the instructionaland administrative aspects of the District's operations. Revenues consist largely of state government aid andmember contributions.

Special Revenue Funds - account for the proceeds of specific revenue sources that are legally restricted orcommitted 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 theDistrict’s buildings and land. Revenue consists primarily of member contributions and federal funding.

Transportation Fund - accounts for all revenue and expenditures made for student transportation. Revenueis derived primarily from state reimbursement grants and member contributions.

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. Thesefunds 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 localeducation 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 staffmember, for educational, recreational or cultural purposes. Convenience Accounts account for assets thatare normally maintained by a local education agency as a convenience for its faculty, staff, etc.

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

Advances from member districts, certain state and federal aid, and interest on investments are susceptible toaccrual. Other receipts become measurable and available when cash is received by the District andrecognized as revenue at that time.

Grant funds are considered to be earned to the extent of expenditures made under the provisions of thegrant. 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 principlesrequires 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 contingentassets, deferred outflows of resources, liabilities, and deferred inflows of resources at the date of thefinancial statements and the reported amounts of revenues and expenditures/expenses during the reportingperiod. Actual results could differ from those estimates.

Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, andNet Position or Equity

Deposits and Investments

State statutes authorize the District to invest in obligations of the U.S. Treasury, certain highly-ratedcommercial 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 investmentincome.

Receivables and Payables

Transactions between funds that are representative of lending/borrowing arrangements outstanding at theend of the fiscal year are referred to as "due to/from other funds". These amounts are eliminated in thegovernmental activities column in the statement of net position. Receivables are expected to be collectedwithin one year.

Capital Assets

Capital assets, which include land, land improvements, building improvements, equipment and vehicles arereported in the government-wide financial statements. Capital assets are defined by the District as assetswith an initial individual cost of more than $1,000 and an estimated useful life of more than 1 year. Suchassets are recorded at historical cost or estimated historical cost if purchased or constructed. Donatedcapital assets are recorded at estimated fair value at the date of donation.

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

Assets Years

Land improvements 20Building improvements 20-50Vehicles 8Equipment 5-20

In the fund financial statements, capital assets used in governmental fund operations are accounted for ascapital 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 andwill not be recognized as an outflow of resources (expense/expenditure) until that future time.

Compensated Absences

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

Employees who work a twelve-month year are entitled to be compensated for vacation time.Administrators and other personnel must take all unused vacation time by September 1st after the end of thefiscal year or it is lost. As such, all accrued vacation time taken between June 30th and September 1st isrecorded as a liability.

All certified employees receive a specified number of sick days per year depending on their years of service.Unused sick leave days are accumulated. Sick days are paid out upon retirement if the accrued total isbeyond the days reported to TRS and IMRF (340 days and 291 days, respectively). The sick days accruedin excess of the days reported to TRS and IMRF are therefore recorded as a liability.

For governmental funds, the current portion of compensated absences is the amount that is normallyexpected to be paid using expendable available financial resources. These amounts are recorded in the fundfrom which the employees who have accumulated vacation leave are paid.

Long-Term Obligations

In the government-wide financial statements, long-term debt and other long-term obligations are reported asliabilities in the statement of net position. Bond premiums and discounts are deferred and amortized overthe life of the applicable bonds using the effective interest method. The balance at year end forpremiums/discounts is shown as an increase or decrease in the liability section of the statement of netposition.

In the fund financial statements, governmental funds recognize bond premiums and discounts during theperiod incurred. The face amount of debt issued is reported as other financing sources. Premiums receivedon debt issuances are reported as other financing sources while discounts on debt issuances are reported asother financing uses.

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Deferred Inflows of Resources

A deferred inflow of resources represents an acquisition of net position that applies to a future period andtherefore will not be recognized as an inflow of resources (revenue) until that future time.

Equity Classifications

Equity is classified as net position in the government-wide financial statements and displayed in threecomponents:

Net investment in capital assets - Consists of capital assets including restricted capital assets, net ofaccumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes, or otherborrowings that are attributable to the acquisition, construction, or improvement of those assets less thanany unspent debt proceeds.

Restricted net position - Consists of net position with constraints placed on its use either by 1) external groupssuch as creditors, grantors, contributors, or laws or regulations of other governments or, 2) law throughconstitutional provisions or enabling legislation.

Unrestricted net position - All other net position that does not meet the definition of "restricted" or "netinvestment in capital assets."

When both restricted and unrestricted resources are available for use, it is the District’s policy to userestricted 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 bemaintained intact legally or contractually (principal endowment) (e.g. inventory, pre-paid items, permanentscholarships).

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

Committed - includes amounts constrained for a specific purpose by a government using its highest level ofdecision making authority, the Board of Education. This formal action (a resolution) must occur prior to theend 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 sameformal 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 byan official that has been delegated authority to assign amounts. Additionally, all remaining positivespendable amounts in governmental funds, other than the General Fund, that are neither restricted norcommitted 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 classifiedwithin the other above mentioned categories. Unassigned fund balance may also include negative balancesfor any governmental fund if expenditures exceed amounts restricted, committed or assigned for thosespecific purposes.

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In circumstances where an expenditure is to be made for a purpose for which amounts are available inmultiple fund balance classifications, the order in which resources will be expended is as follows: restrictedfund balance, followed by committed fund balance, assigned fund balance, and lastly, unassigned fundbalance.

The assigned fund balance of $247,765 in the General (Educational) Fund consists of accumulatedsurcharges to non-member districts for special education services. The restricted fund balance of $884,700in the General (Educational) Funds consists of the residual fund balance, after considering all other fundbalance amounts, as these funds are restricted for instructional and administrative purposes by the memberdistricts.

The assigned fund balances of $17,138, and $3,500 in the Operations and Maintenance Fund, andTransportation Fund, respectively, consist of accumulated surcharges to non-member districts for specialeducation services: of the type defined for each fund in the "major governmental funds" section above.

Comparative Data

The financial statements include summarized prior-year comparative information. Such information doesnot include sufficient detail to constitute a presentation in conformity with accounting principles generallyaccepted in the United States of America. Accordingly, such information should be read in conjunctionwith the District's financial statements for the year ended June 30, 2014, from which such summarizedinformation was derived.

Eliminations and Reclassifications

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

NOTE 2 - STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY

Excess of Expenditures over Budget

For the year ended June 30, 2015, expenditures exceeded budget in the Transportation Fund by $44,415.This excess was funded by available fund balance.

NOTE 3 - CHANGES IN ACCOUNTING PRINCIPLES

In June 2012, the GASB issued statement No. 68 - Accounting and Financial Reporting for Pensions - anAmendment of GASB Statement No. 27. The primary objective of this statement is to improve accounting andfinancial reporting by state and local governments for pensions. It also improves information provided bystate and local governmental employers about financial support for pensions that is provided by otherentities. This standard was implemented effective July 1, 2014.

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In November 2013, the GASB issued statement No. 71 - Pension Transition for Contributions Made Subsequentto the Measurement Date - an Amendment of GASB Statement No. 68. The objective of this Statement is toaddress an issue regarding application of the transition provisions of Statement No. 68, Accounting andFinancial Reporting for Pensions. The issue relates to amounts associated with contributions, if any, made by astate or local government employer or nonemployer contributing entity to a defined benefit pension planafter the measurement date of the government’s beginning net pension liability. This standard wasimplemented effective July 1, 2014.

NOTE 4 - DEPOSITS AND INVESTMENTS

Cash & Investments under the custody of the Township Treasurer

Under the Illinois Compiled Statutes, the Proviso Township School Treasurer is the lawful custodian of allschool funds. The Treasurer is appointed by the Township School Trustees, an independently elected body,to serve the school districts in the township. The Treasurer is the direct recipient of property taxes,replacement taxes and most state and federal aid and disburses school funds upon lawful order of the schoolboard. The Treasurer invests excess funds at his discretion, subject to the legal restrictions discussed below.For these purposes, the Treasurer is permitted to combine monies from more than one fund of a singledistrict and to combine monies of more than one district in the township. Monies combined under thesecircumstances, as well as investment earnings, are accounted for separately for each fund and/or district.

Cash and investments, other than the student activity and convenience accounts, petty cash, and imprestfunds, are part of a common pool for all school districts and cooperatives within the township. TheTreasurer maintains records that segregate the cash and investment balance by district or cooperative.Income from investments is distributed monthly based upon the District's percentage participation in thepool. All cash for all funds is not deemed available for purposes other than those for which these balancesare intended.

The Treasurer's investment policies are established by the Proviso Township School Trustees as prescribedby the Illinois School Code and the Illinois Compiled Statutes. The Treasurer is authorized to invest inobligations of the U.S. Treasury, backed by the full faith and credit of the U.S. Government, certificates ofdeposit issued by commercial banks and savings and loan associations, and commercial paper rated withinthe three highest classifications by at least two standard rating services (subject to certain limitations).

The Treasurer's Office operates as a non-rated, external investment pool. The fair value of the District'sinvestment in the Treasurer's pool is determined by the District's proportionate share of the fair value of theinvestments held by the Treasurer's office.

The weighted average maturity of all marketable pooled investments held by the Treasurer was 1.73 years atJune 30, 2015. The Treasurer also holds money market type investments, certificates of deposits and otherdeposits with financial institutions. As of June 30, 2015, the fair value of all investments held by theTreasurer's office was $247,493,439 and the fair value of the District's proportionate share of the pool was$501,672.

Because all cash and investments are pooled by a separate legal governmental agency (Treasurer),categorization by risk category is not determinable. Further information about whether investments areinsured, collateralized, or uncollateralized is available from the Treasurer's financial statements.

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NOTE 4 - DEPOSITS AND INVESTMENTS - (CONTINUED)

Cash & Investments in the custody of the District

Deposits of the student activity and imprest funds, which are held in the District's custody, consist ofdeposits with financial institutions. The following is a summary of such deposits:

Carrying Value Bank Balance

Deposits with financial institutions $ 47,613 $ 52,390

Total $ 47,613 $ 52,390

The District maintains $900 in petty cash.

Custodial Credit Risk - Deposits. With respect to deposits, custodial credit risk refers to the risk that, in theevent of a bank failure, the District’s deposits may not be returned to it. The District does not have aspecific policy in regards to custodial credit risk. As of June 30, 2015, the bank balance of the District’sdeposit with financial institutions totaled $52,390; of this amount, the entire amount was collateralized orinsured.

NOTE 5 - CAPITAL ASSETS

Capital asset activity for the District for the year ended June 30, 2015 was as follows:

BeginningBalance Increases Decreases

EndingBalance

Capital assets not being depreciated:

Land $ 267,124 $ - $ - $ 267,124

Total capital assets not beingdepreciated 267,124 - - 267,124

Capital assets being depreciated:

Land improvements 90,781 15,490 - 106,271Building improvements 6,114,098 114,388 - 6,228,486Equipment 993,312 15,062 - 1,008,374Vehicles 86,239 - - 86,239

Total capital assets being depreciated 7,284,430 144,940 - 7,429,370

Less Accumulated Depreciation for:

Land improvements 90,781 8,125 - 98,906Building improvements 3,065,597 162,957 - 3,228,554Equipment 850,335 57,367 - 907,702Vehicles 80,153 5,970 - 86,123

Total accumulated depreciation 4,086,866 234,419 - 4,321,285

Net capital assets being depreciated 3,197,564 (89,479) - 3,108,085

Net governmental activities capitalassets $ 3,464,688 $ (89,479) $ - $ 3,375,209

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NOTE 5 - CAPITAL ASSETS - (CONTINUED)

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

Governmental Activities Depreciation

Instruction $ 188,173Related Services 7,250Administrative 35,888Food Services 3,108

Total depreciation expense - governmental activities $ 234,419

NOTE 6 - OPERATING LEASES

The District leases building and other equipment under noncancelable operating leases. Total costs for suchleases were $19,740 for the year ended June 30, 2015. At June 30, 2015, future minimum lease paymentsfor these leases are as follows:

Year Ending June 30, Amount

2016 $ 27,1392017 26,3152018 26,3152019 26,3152020 26,315

Total $ 132,399

NOTE 7 - LONG TERM LIABILITIES

Changes in General Long-term Liabilities. The following is the long-term liability activity for the District for theear ended June 30, 2015:

BeginningBalance Additions Deletions

EndingBalance

Due WithinOne Year

Net pension liability $ 6,753,415 $ - $ 1,410,632 $ 5,342,783 $ -Net OPEB Obligation 85,106 51,136 18,531 117,711 -Compensated absences 15,019 84,668 84,668 15,019 15,019

Total long-term liabilities -

governmental activities $ 6,853,540 $ 135,804 $ 1,513,831 $ 5,475,513 $ 15,019

The liability for compensated absences, the net OPEB obligation, and net pension liability will be paid fromthe General (Educational) Fund or Operations and Maintenance Fund, as applicable.

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NOTE 8 - RISK MANAGEMENT

The District is exposed to various risks of loss related to employee health benefits; workers' compensationclaims; theft of, damage to, and destruction of assets; and natural disasters. To protect itself from such risks,the District participates in the following public entity risk pools: Educational Benefit Cooperative (EBC) foremployee health and life risks, Suburban School Cooperative Insurance Pool (SSCIP) for auto and propertyliability, and School Employees' Loss Fund (SELF) for workmen's compensation, occupational diseases andemployer liability. The District pays annual premiums to the pools for insurance coverage. Thearrangements with the pools provide that each will be self-sustaining through member premiums and willreinsure through commercial companies for claims in excess of certain levels established by the pools.There have been no significant reductions in insurance coverage in any of the past three fiscal years.

NOTE 9 - OTHER POST-EMPLOYMENT BENEFITS

Teachers' Health Insurance Security

The District participates in the Teacher Health Insurance Security (THIS) Fund, a cost-sharing, multiple-employer defined benefit post-employment healthcare plan that was established by the Illinois legislature forthe benefit of retired Illinois public school teachers employed outside the city of Chicago. The THIS Fundprovides medical, prescription, and behavioral health benefits, but it does not provide vision, dental, or lifeinsurance benefits to annuitants of the Teachers’ Retirement System (TRS). Annuitants not enrolled inMedicare may participate in the state-administered participating provider option plan or choose fromseveral managed care options. Annuitants who are enrolled in Medicare Parts A and B may be eligible toenroll in a Medicare Advantage plan.

The State Employees Group Insurance Act of 1971 (5 ILCS 375) outlines the benefit provisions of the THISFund 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 IllinoisDepartment of Central Management Services (CMS) with the cooperation of TRS. Section 6.6 of the StateEmployees Group Insurance Act of 1971 requires all active contributors to TRS who are not employees ofthe state to make a contribution to the THIS Fund.

The percentage of employer required contributions in the future will not exceed 105 percent of thepercentage 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 insurancecontributions on behalf of the District. State contributions are intended to match contributions to THISFund from active members which were 1.02 percent of pay during the year ended June 30, 2015. State ofIllinois contributions were $84,078, and the District recognized revenues and expenditures of this amountduring the year.

State contributions intended to match active member contributions during the years ended June 30, 2014and June 30, 2013 were 0.97 and 0.92 percent of pay, respectively. For these years, state contributions onbehalf of District employees were $78,748 and $72,286, respectively.

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

Employer Contributions to THIS Fund. The District also makes contributions to THIS Fund. The District'sTHIS Fund contribution was 0.76 percent during the year ended June 30, 2015 and 0.72 and 0.69 percentduring the years ended June 30, 2014 and 2013, respectively. For the years ended June 30, 2015, 2014 and2013 the District paid $62,647, $58,452 and $54,214 to the THIS Fund, respectively, which was 100 percentof the required contribution for those years.

The publicly available financial report of the THIS Fund may be found on the website of the IllinoisAuditor General: http://www.auditor.illinois.gov/Audit-Reports/ABC-List.asp. The 2014 and 2013reports are listed under "Central Management Services." Prior reports are available under "Healthcare andFamily Services."

Post-Retirement Health Benefit Plan

The District administers a single-employer defined benefit healthcare plan ("the Post-Retirement HealthBenefit Plan"). The plan provides postemployment benefits for eligible retirees and their spouses through theDistrict's plan which covers both active and retired members. Benefit provisions are established through and state that eligible retirees and their spouses receive lifetime healthcare insurance at establishedcontribution rates. The Post-Retirement Health Benefit Plan does not issue a publicly available financialreport.

Contribution requirements are established through personnel policy guidelines and may be amended by theaction of the governing body. The District contributes a maximum of $200 per month until age 55 with 20years of services. This benefit is applicable for employee who gave retirement notices no later than the12/13 school year. For fiscal years beginning with the 13/14 fiscal year, the District shall only contribute$2,400 per year to a tax-sheltered annuity plan (Section 403(b plan) for five years or until the employeereaches age 65 years of age. This benefit is in lieu of a contribution to health care costs. For fiscal year2015, the District contributed $18,531 to the plan.

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

Annual required contribution $ 52,454Interest on net OPEB obligation 3,620Adjustment to annual required contribution (4,938)

Annual OPEB cost 51,136Contributions made (18,531)

Increase in net OPEB obligation (asset) 32,605

Net OPEB Obligation (Asset) - Beginning of Year 85,106

Net OPEB Obligation (Asset) - End of Year $ 117,711

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The District's annual OPEB cost, the percentage of annual OPEB cost contributed to the Post-RetirementHealth Benefit Plan, and the net OPEB obligation for June 30, 2015 and the two preceding years are asfollows:

Fiscal Year EndedAnnual OPEB

Cost

Percentage ofAnnual OPEB

CostContributed

Net OPEBObligation

(Asset)

June 30, 2015 $ 51,136 %36.24 $ 117,711June 30, 2014 52,388 %18.77 85,106June 30, 2013 52,388 %18.77 42,553

The funded status of the Post-Retirement Health Benefit Plan as of July 1, 2014, the most recent actuarialvaluation date, is as follows:

Actuarial accrued liability (AAL) $ 496,015Actuarial value of plan assets -

Unfunded Actuarial Accrued Liability (UAAL) $ 496,015

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

Covered payroll (active plan members) $ 11,996,151

UAAL as a percentage of covered payroll 4.13%

Actuarial valuations of an ongoing plan involve estimates for the value of reported amounts andassumptions about the probability of occurrence of events far into the future. Examples include assumptionsabout future employment, mortality, and the healthcare cost trend. Amounts determined regarding thefunded status of the plan and annual required contributions of the employer are subject to continual revisionas actual results are compared with past expectations and new estimates are made about the future. Theschedule of funding progress, presented as required supplementary information following the notes to thefinancial statements, presents multiyear trend information that shows whether the actuarial value of planassets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.

Projections of benefits for financial reporting purposes are based on the substantive plan (the plan isunderstood by the employer and plan members) and include the type of benefits provided at the time ofeach valuation and the historical pattern of sharing benefit costs between the employer and plan members tothat point. The methods and assumptions used include techniques that are designed to reduce short-termvolatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-termperspective of the calculations.

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In the July 1, 2014 actuarial valuation, the projected unit credit actuarial cost method was used. Theactuarial assumptions include a 5 percent investment rate of return. The rate include a 3 percent inflationassumption. The actuarial value of the Post-Retirement Health Benefit Plan assets was determined usingtechniques that spread the effects of short-term volatility in the market value of investments over a three-year period. The Post-Retirement Health Benefit Plan's unfunded actuarial accrued liability is beingamortized as a level of percentage of projected payroll on an open basis. The remaining amortization periodat June 30, 2015 is 30 years.

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 payrollwithholdings 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 propertyreplacement tax. Each retirement system is discussed below.

Teachers' Retirement System

Plan Description. The District participates in the Teachers’ Retirement System of the State of Illinois (TRS).TRS is a cost-sharing multiple-employer defined benefit pension plan that was created by the Illinoislegislature for the benefit of Illinois public school teachers employed outside the city of Chicago. TRSmembers include all active nonannuitants who are employed by a TRS-covered employer to provideservices for which teacher licensure is required. The Illinois Pension Code outlines the benefit provisions ofTRS, and amendments to the plan can be made only by legislative action with the Governor’s approval.The TRS Board of Trustees is responsible for the System’s administration.

TRS issues a publicly available financial report that can be obtained at http://trs.illinois.gov/pubs/cafr; bywriting to TRS at 2815 W. Washington, PO Box 19253, Springfield, IL 62794; or by calling (888) 877-0890,option 2.

Benefits Provided. TRS provides retirement, disability, and death benefits. Tier I members have TRS orreciprocal system service prior to January 1, 2011. Tier I members qualify for retirement benefits at age 62with five years of service, at age 60 with 10 years, or age 55 with 20 years. The benefit is determined by theaverage of the four highest years of creditable earnings within the last 10 years of creditable service and thepercentage of average salary to which the member is entitled. Most members retire under a formula thatprovides 2.2 percent of final average salary up to a maximum of 75 percent with 34 years of service.Disability and death benefits are also provided.

Tier II members qualify for retirement benefits at age 67 with 10 years of service, or a discounted annuitycan be paid at age 62 with 10 years of service. Creditable earnings for retirement purposes are capped andthe final average salary is based on the highest consecutive eight years of creditable service rather than thelast four. Disability provisions for Tier II are identical to those of Tier I. Death benefits are payable under aformula that is different from Tier I.

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NOTE 10 - RETIREMENT SYSTEMS - (CONTINUED)

Essentially all Tier I retirees receive an annual 3 percent increase in the current retirement benefit beginningJanuary 1 following the attainment of age 61 or on January 1 following the member’s first anniversary inretirement, whichever is later. Tier II annual increases will be the lesser of three percent of the originalbenefit or one-half percent of the rate of inflation beginning January 1 following attainment of age 67 or onJanuary 1 following the member’s first anniversary in retirement, whichever is later.

Contributions. The State of Illinois maintains the primary responsibility for funding TRS. The IllinoisPension Code, as amended by Public Act 88-0593 and subsequent acts, provides that for years 2010 through2045, the minimum contribution to the System for each fiscal year shall be an amount determined to besufficient to bring the total assets of the System up to 90 percent of the total actuarial liabilities of the Systemby the end of fiscal year 2045.

Contributions from active members and TRS contributing employers are also required by the IllinoisPension Code. The contribution rates are specified in the pension code. The active member contributionrate for the year ended June 30, 2015 was 9.4 percent of creditable earnings. The member contribution,which may be paid on behalf of employees by the District, is submitted to TRS by the District.

On Behalf Contributions to TRS. The State of Illinois makes employer pension contributions on behalf of theDistrict. For the year ended June 30, 2015, State of Illinois contributions recognized by the District werebased on the state’s proportionate share of the collective net pension liability associated with the District,and the District recognized revenue and expenditures of $4,032,604 in pension contributions from the Stateof Illinois.

2.2 Formula Contributions. Employers contribute 0.58 percent of total creditable earnings for the 2.2 formulachange. The contribution rate is specified by statute. Contributions for the year ended June 30, 2015, were$47,809, and are deferred because they were paid after the June 30, 2014 measurement date.

Federal and Trust Fund Contributions. When TRS members are paid from federal and special trust fundsadministered by the District, there is a statutory requirement for the District to pay an employer pensioncontribution from those funds. Under a policy adopted by the TRS Board of Trustees that has been in effectsince the fiscal year ended June 30, 2006, employer contributions for employees paid from federal andspecial trust funds will be the same as the state contribution rate to TRS. Public Act 98-0674 now requiresthe two rates to be the same.

For the year ended June 30, 2015, the District pension contribution was 33.00 percent of salaries paid fromfederal and special trust funds. Contributions for the year ended June 30, 2015, were $239,035, which wasequal to the District's required contribution. These contributions are deferred because they were paid afterthe June 30, 2014 measurement date.

Salary increases over 6 percent. The District is also required to make a one-time contribution to TRS formembers granted salary increases over 6 percent if those salaries are used to calculate a retiree’s finalaverage salary. For the year ended June 30, 2015, the District paid $2,081 to TRS for employercontributions due on salary increases in excess of 6 percent.

TRS Fiduciary Net Position. Detailed information about the TRS’s fiduciary net position as of June 30, 2014is available in the separately issued TRS Comprehensive Annual Financial Report.

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Net Pension Liability. At June 30, 2015, the District reported a liability for its proportionate share of the netpension liability (first amount shown below) that reflected a reduction for state pension support provided tothe District. The state’s support and total are for disclosure purposes only. The amount recognized by theDistrict as its proportionate share of the net pension liability, the related state support, and the total portionof the net pension liability that was associated with the District were as follows:

District's proportionate share of the collective net pension liability $ 5,342,783State's proportionate share of the collective net pension liability associated with the District 50,087,852

Total$ 55,430,635

The net pension liability was measured as of June 30, 2014, and the total pension liability used to calculatethe net pension liability was determined by an actuarial valuation as of June 30, 2013, and rolled forward toJune 30, 2014. The District’s proportion of the net pension liability was based on the District’s share ofcontributions to TRS for the measurement year ended June 30, 2014, relative to the projected contributionsof all participating TRS employers and the state during that period. At June 30, 2014, the District’sproportion was 0.00877906 percent.

The net pension liability as of the beginning of the measurement period was measured as of June 30, 2013,and the total pension liability was based on the June 30, 2013, actuarial valuation without any roll-up. TheDistrict’s proportion of the net pension liability as of June 30, 2013, was based on the District’s share ofcontributions to TRS for the measurement year ended June 30, 2013, relative to the projected contributionsof all participating TRS employers and the state during that period. At June 30, 2013, the District’sproportion was 0.01078211 percent.

Summary of Significant Accounting Policies. For purposes of measuring the collective net pension liability,deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense,information about the fiduciary net position of TRS and additions to/deductions from TRS fiduciary netposition have been determined on the same basis as they are reported by TRS. For this purpose, benefitpayments (including refunds of employee contributions) are recognized when due and payable inaccordance with the benefit terms. Investments are reported at fair value.

Actuarial Assumptions. The assumptions used to measure the total pension liability in the June 30, 2014actuarial valuation included (a) 7.50% investment rate of return net of pension plan investment expense,including inflation, (b) projected salary increases of 5.75%, average, including inflation, and (c) inflation of3.00%.

The actuarial assumptions for the years ended June 30, 2014 and 2013 were assumed to be the same.However, for funding purposes, the actuarial valuations for those two years were different. The actuarialassumptions used in the June 30, 2014 valuation were based on updates to economic assumptions adoptedin 2014 which lowered the investment return assumption from 8.0 percent to 7.5 percent. The salaryincrease and inflation assumptions were also lowered. The actuarial assumptions used in the June 30, 2013valuation were based on the 2012 actuarial experience analysis and first adopted in the June 30, 2012valuation. The investment return assumption was lowered from 8.5 percent to 8.0 percent and the salaryincrease and inflation assumptions were also lowered. Mortality assumptions were adjusted to anticipatecontinued improvement in mortality.

Mortality. Mortality rates were based on the RP-2000 White Collar Table with projections using scale AAthat vary by member group.

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Long-Term Expected Real Rate of Return. The long-term expected rate of return on pension plan investmentswas determined using a building-block method in which best-estimate ranges of expected future real rates ofreturn (expected returns, net of pension plan investment expense and inflation) are developed for eachmajor asset class. These ranges are combined to produce the long-term expected rate of return by weightingthe expected future real rates of return by the target asset allocation percentage and by adding expectedinflation. The target allocation and best estimates of arithmetic real rates of return for each major asset classthat were used by the actuary are summarized in the following table:

Asset ClassTarget

Allocation

Long-TermExpected RealRate of Return

U.S. large cap %18.00 %8.23Global equity excluding U.S. %18.00 %8.58Aggregate bonds %16.00 %2.27U.S. TIPS %2.00 %3.52NCREIF %11.00 %5.81Opportunistic real estate %4.00 %9.79ARS %8.00 %3.27Risk parity %8.00 %5.57Diversified inflation strategy %1.00 %3.96Private equity %14.00 %13.03

Discount Rate. The discount rate used to measure the total pension liability was 7.50 percent. Theprojection of cash flows used to determine the discount rate assumed that employee contributions, employercontributions, and state contributions will be made at the current statutorily-required rates.

Based on those assumptions, TRS’s fiduciary net position was projected to be available to make allprojected future benefit payments of current active and inactive members and all benefit recipients. Tier I’sliability is partially-funded by Tier II members, as the Tier II member contribution is higher than the cost ofTier II benefits. Due to this subsidy, contributions from future members in excess of the service cost are alsoincluded in the determination of the discount rate. Therefore, the long-term expected rate of return on TRSinvestments was applied to all periods of projected benefit payments to determine the total pension liability.

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Discount Rate Sensitivity. The following presents the District’s proportionate share of the net pension liabilitycalculated using the discount rate of 7.5 percent, as well as what the District’s proportionate share of the netpension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.5percent) or 1-percentage-point higher (8.5 percent) than the current rate:

1% DecreaseCurrent

Discount Rate 1% Increase

District's proportionate share of the collective net pensionliability $ 6,598,075 $ 5,342,783 $ 4,303,075

Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions. For theyear ended June 30, 2015, the District recognized pension expense of 178,090 and on-behalf revenue andexpense of $4,032,604 for support provided by the state. At June 30, 2015, the District reported deferredoutflows of resources and deferred inflows of resources related to pensions from the following sources:

DeferredOutflows ofResources

DeferredInflows of

Resources

Differences between expected and actual experience $ 2,822 $ -Net difference between projected and actual earnings on pension planinvestments - 268,516Changes in proportion and differences between District contributions andproportionate share of contributions - 1,009,796District contributions subsequent to the measurement date 286,844 -

Total $ 289,666 $ 1,278,312

The amount reported as deferred outflows resulting from contributions subsequent to the measurement datein the above table will be recognized as a reduction in the net pension liability for the year ending June 30,2016. The remaining amounts reported as deferred outflows and inflows of resources related to pensions($(1,275,490)) will be recognized in pension expense as follows:

Year Ending June 30, Amount

2016 $ (311,540)2017 (311,540)2018 (311,540)2019 (311,540)2020 (29,330)

Total $ (1,275,490)

Illinois Municipal Retirement Fund

Plan Description. The District’s defined benefit pension plan for Regular employees provides retirement anddisability benefits, post retirement increases, and death benefits to plan members and beneficiaries. TheDistrict's plan is affiliated with the Illinois Municipal Retirement Fund (IMRF), an agent multiple-employerplan. Benefit provisions are established by statute and may only be changed by the General Assembly of theState of Illinois. IMRF issues a publicly available financial report that includes financial statements andrequired supplementary information. The report may be obtained on-line at www.imrf.org.

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All employees hired in positions that meet or exceed the prescribed annual hourly standard must be enrolledin IMRF as participating members. Public Act 96-0889 created a second tier for IMRF’s Regular Plan.IMRF assigns a benefit tier to a member when he or she is enrolled in IMRF. The tier is determined by themember’s first IMRF participation date. If the member first participated in IMRF before January 1, 2011,they participate in Regular Tier 1. If the member first participated in IMRF on or after January 1, 2011, theyparticipate in Regular Tier 2.

For Regular Tier 1, pension benefits vest after eight years of service. Participating members who retire at orafter age 60 with 8 years of service are entitled to an annual retirement benefit, payable monthly for life inan amount equal to 1 2/3% of their final rate (average of the highest 48 consecutive months earnings duringthe last 10 years) of earnings for each year of credited service up to 15 years and 2% for each year thereafter.For Regular Tier 2, pension benefits vest after ten years of service. Participating members who retire at orafter age 67 with 10 years of service, or age 62 with 35 years of service are entitled to an annual retirementbenefit as described above. IMRF also provides death and disability benefits. These benefit provisions andall other requirements are established by state statute.

Plan Membership. At December 31, 2014, the measurement date, membership of the plan was as follows:

Retirees and beneficiaries 85Inactive, non-retired members 97Active members 164

Total346

Contributions. As set by statute, District employees participating in IMRF are required to contribute 4.50percent 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. TheDistrict's actuarially determined contribution rate for calendar year 2014 was 12.02 percent of annualcovered payroll. The District also contributes for disability benefits, death benefits and supplementalretirement benefits, all of which are pooled at the IMRF level. Contribution rates for disability and deathbenefits are set by the IMRF Board of Trustees, while the supplemental retirement benefits rate is set bystatute.

Net Pension Liability/(Asset). The net pension liability/(asset) was measured as of December 31, 2014, andthe total pension liability used to calculate the net pension liability/(asset) was determined by an annualactuarial valuation as of that date.

Summary of Significant Accounting Policies. For purposes of measuring the net pension liability/(asset),deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense,information about the fiduciary net position of IMRF and additions to/deductions from IMRF fiduciary netposition have been determined on the same basis as they are reported by IMRF. For this purpose, benefitpayments (including refunds of employee contributions) are recognized when due and payable inaccordance with the benefit terms. Investments are reported at fair value.

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Actuarial Assumptions. The assumptions used to measure the total pension liability in the December 31, 2014annual actuarial valuation included (a) 7.50% investment rate of return, (b) projected salary increases from3.75% to 14.50%, including inflation, and (c) inflation of 3.50% and price inflation of 2.75%. Theretirement age is based on experience-based table of rates that are specific to the type of eligibility condition.The tables were last updated for the 2014 valuation pursuant to an experience study of the period 2011-2013.

Mortality. For non-disabled retirees, an IMRF specific mortality table was used with fully generationalprojection scale MP-2014 (base year 2014). The IMRF specific rates were developed from the RP-2014 BlueCollar Health Annuitant Mortality Table with adjustments to match current IMRF experience. Fordisabled retirees, an IMRF specific mortality table was used with fully generational projection scale MP-2014 (base year 2014). The IMRF specific rates were developed from the RP-2014 Disabled RetireesMortality Table applying the same adjustment that were applied for non-disabled lives. For activemembers, an IMRF specific mortality table was used with fully generational projection scale MP-2014 (baseyear 2014). The IMRF specific rates were developed from the RP-2014 Employee Mortality Table withadjustments to match current IMRF experience.

Long-Term Expected Real Rate of Return. The long-term expected rate of return on pension plan investmentswas determined using an asset allocation study in which best-estimate ranges of expected future real rates ofreturn (net of pension plan investment expense and inflation) were developed for each major asset class.These ranges were combined to produce long-term expected rate of return by the target asset allocationpercentage and by adding expected inflation. The target allocation and best estimates of arithmetic andgeometric real rates of return for each major asset class are summarized in the following table:

Projected Returns/Risk

Asset ClassTarget

AllocationOne YearArithmetic

Ten YearGeometric

Equities %63.20 %9.15 %7.60International equities %2.60 %9.80 %7.80Fixed income %23.50 %3.05 %3.00Real estate %4.30 %7.35 %6.15Alternatives %4.50

Private equity %13.55 %8.50Hedge funds %5.55 %5.25Commodities %4.40 %2.75

Cash equivalents %1.90 %2.25 %2.25

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Discount Rate. The discount rate used to measure the total pension liability for IMRF was 7.50%. Thediscount rate calculated using the December 31, 2013 measurement date was 7.50%. The projection of cashflows used to determine the discount rate assumed that member contributions will be made at the currentcontribution rate and that District contributions will be made at rates equal to the difference betweenactuarially determined contribution rates and the member rate. Based on those assumptions, the fiduciarynet position was projected not to be available to make all projected future benefit payments of current planmembers. Therefore, the long-term expected rate of return on investments of 7.50% was blended with theindex rate of 3.56% for tax exempt 20-year general obligation municipal bonds with an average AA creditrating at December 31, 2014 to arrive at a discount rate of 7.50 used to determine the total pension liability.The year ending December 31, 2113 is the last year in the 2015 to 2114 projection period for whichprojected benefit payments are fully funded.

Discount Rate Sensitivity. The following is a sensitivity analysis of the net pension liability/(asset) to changesin the discount rate. The table below presents the pension liability of the District calculated using thediscount rate of 7.50% as well as what the net pension liability/(asset) would be if it were to be calculatedusing a discount rate that is 1 percentage point lower (6.50%) or 1 percentage point higher (8.50%) than thecurrent rate:

1% DecreaseCurrent

Discount Rate 1% Increase

Total pension liability $ 17,939,324 $ 15,732,247 $ 13,934,469Plan fiduciary net position 15,745,434 15,745,434 15,745,434

Net pension liability/(asset) $ 2,193,890 $ (13,187) $ (1,810,965)

Changes in Net Pension Liability/(Asset). The District's changes in net pension liability/(asset) for the calendaryear ended December 31, 2014 was as follows:

Increase (Decrease)Total Pension

Liability(a)

Plan FiduciaryNet Position

(b)

Net PensionLiability/(Asset)

(a) - (b)

Balances at December 31, 2013 $ 14,398,734 $ 14,709,493 $ (310,759)Service cost 541,326 - 541,326Interest on total pension liability 1,079,224 - 1,079,224Differences between expected and actual experience ofthe total pension liability (340,537) - (340,537)Change of assumptions 612,986 - 612,986Benefit payments, including refunds of employeecontributions (559,486) (559,486) -Contributions - employer - 547,953 (547,953)Contributions - employee - 220,888 (220,888)Net investment income - 903,664 (903,664)Other (Net Transfer - (77,078) 77,078

Balances at December 31, 2014 $ 15,732,247 $ 15,745,434 $ (13,187)

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Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions. For theyear ended June 30, 2015, the District recognized pension expense of $461,609. The District reporteddeferred outflows and inflows of resources related to pension from the following sources:

DeferredOutflows ofResources

DeferredInflows of

Resources

Differences between expected and actual experience $ - $ 275,367Assumption changes 495,677 -Net difference between projected and actual earnings on pension planinvestments 163,606 -Contributions subsequent to the measurement date 334,114 -

Total $ 993,397 $ 275,367

The amount reported as deferred outflows resulting from contributions subsequent to the measurement datein the above table will be recognized as a reduction in the net pension liability/(asset) for the year endingJune 30, 2016. The remaining amounts reported as deferred outflows and inflows of resources related topensions ($383,916) will be recognized in pension expense as follows:

Year Ending December 31, Amount

2015 $ 93,0412016 93,0412017 93,0412018 93,0412019 11,752

Total $ 383,916

NOTE 11 - STATE AND FEDERAL AID CONTINGENCIES

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

NOTE 12 - POSSIBLE MEMBER DISTRICT WITHDRAWAL

The District received notice that one of its member districts has intentions to withdrawal from the District. Inthe opinion of District counsel, estimation of the final financial impact on the District, if any, cannot bedetermined at this time.

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NOTE 13 - RESTATEMENT

Net position has been restated due to the implementation of GASB Statement No. 68 and GASB StatementNo. 71. The restatement is necessary to record the prior year net pension liability as well as deferredoutflows of resources related to employer contributions after the measurement date.

GovernmentalActivities

Net position as previously reported, June 30, 2014 $ 3,266,832Adjustment to record the net pension liability as of June 30, 2014 (6,753,415)Adjustment to record the net pension asset as of June 30, 2014 310,759Adjustment to record deferred outflows of resources related to pensions as of June 30, 2014 568,821

Net position as restated, June 30, 2014 $ (2,607,003)

NOTE 14 - EFFECT OF NEW ACCOUNTING STANDARDS ON

CURRENT-PERIOD FINANCIAL STATEMENTS

The Governmental Accounting Standards Board (GASB) has approved GASB Statement No. 72, Fair ValueMeasurement and Application, GASB Statement No. 73, Accounting and Financial Reporting for Pensions andRelated Assets That Are Not within the Scope of GASB Statement 68, and Amendments to Certain Provisions ofGASB Statements 67 and 68, GASB Statement No. 74, Financial Reporting for Postemployment Benefit PlansOther Than Pension Plans, GASB Statement No. 75, Accounting and Financial Reporting for PostemploymentBenefits Other Than Pensions, and GASB Statement No. 76, The Hierarchy of Generally Accepted AccountingPrinciples for State and Local Governments. Application of these standards may restate portions of these financial

statements.

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See Auditors' Report and Notes to Required Supplementary Information

- 43 -

PROVISO AREA FOR EXCEPTIONAL CHILDREN - DISTRICT SEJA 803ILLINOIS MUNICIPAL RETIREMENT FUND

SCHEDULE OF CHANGES IN THE DISTRICT'S NET PENSION LIABILITYAND RELATED RATIOSMost Recent Fiscal Year

2015

Total pension liabilityService cost 541,326$ Interest 1,079,224 Differences between expected and actual experience (340,537) Changes of assumptions 612,986 Benefit payments, including refunds of member contributions (559,486) Net change in total pension liability 1,333,513

Total pension liability - beginning 14,398,734 Total pension liability - ending (a) 15,732,247$

Plan fiduciary net positionEmployer contributions 547,953$ Employee contributions 220,888 Net investment income 903,664 Benefit payments, including refunds of member contributions (559,486) Other (net transfer) (77,078) Net change in plan fiduciary net position 1,035,941

Plan fiduciary net position - beginning 14,709,493 Plan fiduciary net position - ending (b) 15,745,434$

Employer's net pension liability - ending (a) - (b) (13,187)$

Plan fiduciary net position as a percentage of the total pension liability 100.08%

Covered-employee payroll 4,502,917$

Employer's net pension liability as a percentage of covered-employee payroll -0.29%

Notes to Schedule:The District implemented GASB Statement No. 68 in fiscal year 2015. Information prior to fiscal year 2015 is not available.


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PROVISO AREA FOR EXCEPTIONAL CHILDREN - DISTRICT SEJA 803ILLINOIS MUNICIPAL RETIREMENT FUND

SCHEDULE OF DISTRICT CONTRIBUTIONSMost Recent Fiscal Year

2015

Actuarially determined contribution 513,333$

Contributions in relation to the actuarially determined contribution (547,953) Contribution deficiency (excess) (34,620)$


Contributions as a percentage of covered-employee payroll 12.17%

Notes to Schedule:

Valuation date:

Methods and assumptions used to determine contribution rates: Actuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation 3.00% Salary increases Investment rate of return 7.50% Retirement Age

Mortality RP-2000 CHBCA

Other information:There were no benefit changes during the year.

4.40% to 16.00% including inflation

Experience-based table of rates that are specific to the type of eligibility condition

Actuarially determined contribution rates are calculated as of December 31 each year, which are 6 months prior to the beginning of the fiscal year in which contributions are reported.

The District implemented GASB Statement No. 68 in fiscal year 2015. Information prior to fiscal year 2015 is not available.

Entry age normalLevel percentage of payroll, closed29 years5-Year Smoothed Market


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PROVISO AREA FOR EXCEPTIONAL CHILDREN - DISTRICT SEJA 803TEACHERS' RETIREMENT SYSTEM

SCHEDULE OF DISTRICT'S PROPORTIONATE SHARE OF THE COLLECTIVE NET PENSION LIABILITY AND DISTRICT CONTRIBUTIONS

Most Recent Fiscal Year

2015

District's proportion of the net pension liability 0.00877906%

District's proportionate share of the net pension liability 5,342,783$

State's proportionate share of the net pension liability 50,087,852

Total net pension liability 55,430,635$


64.82%

Plan fiduciary net position as a percentage of the total pension liability 43.00%

Contractually required contribution 286,844$

Contributions in relation to the contractually required contribution (286,844)

Contribution deficiency (excess) (0)$

Contributions as a percentage of covered employee payroll 3.4799%

Notes to Schedule:Amounts reported in 2014 reflect an investment rate of return of 7.5 percent, an inflation rate of 3.0 percent and real return of 4.5 percent, and a salary increase assumption of 5.75 percent. In 2013, assumptions used were an investment rate of return of 8.0 percent, an inflation rate of 3.25 percent and real return of 4.75 percent, and salary increases of 6.00 percent. However, the total pension liability at the beginning and end of the year was calculated using the same assumptions, so the difference due to actuarial assumptions was not calculated or allocated.

Note: The District implemented GASB 68 in 2015. Information for fiscal years prior to 2015 is not applicable.

District's proportionate share of the net pension liability as a percentage of covered payroll

PROVISO AREA FOR EXCEPTIONAL CHILDREN - DISTRICT SEJA 803SCHEDULE OF FUNDING PROGRESS FOR POST-RETIREMENT HEALTH BENEFIT PLAN

AS OF JUNE 30, 2015

ActuarialValuation

Date

Actuarial Valueof Assets

(a)

ActuarialAccrued Liability(AAL) Entry Age

(b)

Unfunded AAL(UAAL)

(b-a)Funded Ratio

(a/b)Covered Payroll

(c)

UAAL as aPercentage of

Covered Payroll((b-a)/c)

7/1/14 $ - $ 496,015 $ 496,015 N/A $ 11,996,151 4.13%7/1/12 - 483,220 483,220 N/A 11,059,797 4.37%


- 46 -

See Independent Auditors' Report and Notes to Required Supplementary Information- 47 -

2015ORIGINAL VARIANCEAND FINAL WITH FINAL 2014BUDGET ACTUAL BUDGET ACTUAL

RevenuesAdvances from Member Districts

Instructional/related services 14,618,832$ 14,125,195$ (493,637)$ 13,711,391$ Administrative and capital outlay 2,774,264 2,630,083 (144,181) 2,455,605

Total advances from member districts 17,393,096 16,755,278 (637,818) 16,166,996

Intergovernmental State funding sources

Instructional 847,188 1,063,648 216,460 963,539 Related services 543,187 682,002 138,815 609,659 Administrative 83,105 104,254 21,149 113,146 Other - - - 1,000.00

Total state funding sources 1,473,480 1,849,904 376,424 1,687,344

Federal funding sourcesIDEA: Flow-through 3,620,934 3,684,956 64,022 3,527,712 Pre-school 98,081 101,801 3,720 101,875 Title IV part B 21st Century (Project Lot) 22,740 4,899 (17,841) 20,548 Medicaid matching 200,000 265,917 65,917 292,573

Total federal funding sources 3,941,755 4,057,573 115,818 3,942,708

Total intergovernmental 5,415,235 5,907,477 492,242 5,630,052

Advances from non-member districts 62,169 82,488 20,319 104,764

Interest on investments 13,000 17,328 4,328 15,012

Food serviceSale of food 10,000 5,360 (4,640) 9,479 Intergovernmental reimbursements: Federal 110,000 131,353 21,353 129,243 Food commodities - 12,324 12,324 11,027 State 2,200 1,263 (937) 2,124

Total food service 122,200 150,300 28,100 151,873 Other

Proviso Township Mental Health Commission 90,000 90,000 - 90,000 Proviso Township Mental Health Commission - Student transition program 28,000 28,000 - 28,000 - Member district reimbursement - 3,980 - - Other 8,750 4,575 (4,175) 22,325

Total other 126,750 126,555 (4,175) 140,325

Total revenues 23,132,450 23,039,426 (97,004) 22,209,022

WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2014


GENERAL FUNDSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

NON GAAP BUDGETARY BASISFOR THE YEAR ENDED JUNE 30, 2015







ExpendituresInstructional

Purchased services -$ -$ -$ 14,356$ Supplies and materials - - - 10,611

Total instructional - - - 24,967

Mentally Impaired-Trainable:Salaries 1,915,175 1,825,623 89,552 1,953,802 Employee benefits 655,410 601,828 53,582 566,397 Purchased services 35,854 28,745 7,109 29,003 Supplies and materials 18,000 16,272 1,728 14,898 Capital outlay 4,480 4,688 (208) 6,710 Dues and fees 350 35.00 315 -

Total trainable mentally handicapped 2,629,269 2,477,191 152,078 2,570,810

Autistic:Salaries 879,845 835,353 44,492 837,395 Employee benefits 329,410 284,390 45,020 316,575 Purchased services 16,470 10,677 5,793 9,437 Supplies and materials 4,200 3,815 385 3,550 Capital outlay 1,600 1,476 124 1,435 Dues and fees 150 - 150 -

Total autistic 1,231,675 1,135,711 95,964 1,168,392

Mentally Impaired-Severe:Salaries 836,600 760,517 76,083 778,806 Employee benefits 318,770 281,834 36,936 264,994 Purchased services 291,720 184,469 107,251 238,008 Supplies and materials 4,950 4,673 277 5,183 Capital outlay 4,765 4,707 58 4,706 Dues and fees 200 - 200 -

Total severe/profound 1,457,005 1,236,200 220,805 1,291,697







Mentally Impaired-Educable:Salaries 1,166,500$ 1,180,762$ (14,262)$ 1,052,975$ Employee benefits 391,375 353,623 37,752 332,392 Purchased services 26,010 20,980 5,030 17,255 Supplies and materials 17,700 16,473 1,227 19,049 Capital outlay 10,324 10,402 (78) 7,882 Dues and fees 200 - 200 75

Total severe educable mentally handicapped 1,612,109 1,582,240 29,869 1,429,628

Early Childhood:Salaries 345,750 339,285 6,465 297,938 Employee benefits 100,188 94,148 6,040 68,713 Purchased services 19,719 3,987 15,732 2,506 Supplies and materials 1,700 586 1,114 2,272 Capital outlay 3,560 3,561 (1) 750 Dues and fees 300 300 - -

Total early childhood 471,217 441,867 29,350 372,179

Alternative Behavior Disorder - Elementary School:Salaries 836,040 836,413 (373) 817,723 Employee benefits 317,530 318,097 (567) 255,981 Purchased services 12,581 10,245 2,336 11,636 Supplies and materials 10,100 7,699 2,401 9,437 Capital outlay 8,590 8,667 (77) 2,972 Dues and fees 360 583.00 (223) - Total P.R.O.V.E. - Behavior Disorder - Elementary School 1,185,201 1,181,704 3,497 1,097,749

Alternative Behavior Disorder - High School:Salaries 1,689,980 1,577,971 112,009 1,576,248 Employee benefits 614,813 527,252 87,561 509,347 Purchased services 59,390 31,554 27,836 38,016 Supplies and materials 8,265 7,611 654 7,309 Capital outlay 9,990 6,326 3,664 5,003 Dues and fees 450 130 320 75

Total P.R.O.V.E. - Behavior Disorder High School 2,382,888 2,150,844 232,044 2,135,998







Summer School:Salaries 220,800$ 219,042$ 1,758$ 216,607$ Employee benefits 25,550 23,137 2,413 21,377 Purchased services 82,200 81,945 255 57,338 Supplies and materials 2,000 2,052 (52) 2,151

Total summer school 330,550 326,176 4,374 297,473

Improvement of Instruction:Salaries 127,818 118,975 8,843 148,290 Employee benefits 53,642 50,199 3,443 67,323 Purchased services 213,156 135,523 77,633 167,945 Supplies and materials 29,803 41,008 (11,205) 52,600 Capital Outlay 8,285 32,065 (23,780) 26,395

Total improvement of instruction 432,704 377,770 54,934 462,553

Total instructional 11,732,618 10,909,703 822,915 10,851,446

Related Services

Nurse:Salaries 197,925 206,778 (8,853) 199,234 Employee benefits 55,797 55,203 594 52,089 Purchased services 2,640 (2,400) 5,040 7,035 Supplies and materials 18,000 18,366 (366) 17,138 Capital outlay 1,200 576 624 1,321 Dues and fees 500 325 175 432

Total nurse 276,062 278,848 (2,786) 277,249

Occupational and Physical Therapy:Salaries 357,240 333,500 23,740 316,955 Employee benefits 89,173 82,983 6,190 89,941 Purchased services 1,366,198 1,448,263 (82,065) 1,345,491 Supplies and materials 12,000 11,653 347 12,288 Capital outlay 9,760 9,794 (34) 9,909 Dues and fees 525 263 262 150

Total occupational and physical therapy 1,834,896 1,886,456 (51,560) 1,774,734







Adapted Physical Education:Salaries 44,600$ 43,709$ 891$ 83,531$ Employee benefits 9,582 12,024 (2,442) 21,582 Purchased services 1,495 1,435 60 1,699 Supplies and materials 300 100 200 200 Capital outlay 200 - 200 100 Dues and fees 75 - 75 75

Total adapted physical education 56,252 57,268 (1,016) 107,187

Speech - Language:Salaries 167,600 167,614 (14) 171,429 Employee benefits 45,640 44,806 834 41,101 Purchased services 2,288,722 2,239,466 49,256 2,095,870 Supplies and materials 10,000 9,218 782 8,801 Capital outlay 2,458 2,458 - 8,559 Dues and fees 200 150 50 325

Total speech - language 2,514,620 2,463,712 50,908 2,326,085

Assistive Technology:Salaries 168,700 169,988 (1,288) 133,720 Employee benefits 47,720 45,816 1,904 30,730 Purchased services 3,460 2,153 1,307 1,844 Supplies and materials 1,200 1,229 (29) 1,009 Capital outlay 2,150 2,104 46 1,059 Other objects - 840 (840) -

Total assistive technology 223,230 222,130 1,100 168,362

Social Workers:Salaries 1,040,187 1,023,411 16,776 1,082,662 Employee benefits 326,201 315,762 10,439 329,439 Purchased services 65,595 63,447 2,148 63,092 Supplies and materials 2,500 2,259 241 2,309 Capital outlay 3,016 2,516 500 1,471 Dues and fees 1,275 930 345 720

Total social workers 1,438,774 1,408,325 30,449 1,479,693







Lunch Program:Salaries 36,000$ 34,468$ 1,532$ 32,893$ Employee benefits 15,047 14,585 462 13,736 Purchased services 102,920 98,745 4,175 92,948 Supplies and materials 18,100 17,045 1,055 16,160 Capital outlay 1,000 - 1,000 856

Total lunch program 173,067 164,843 8,224 156,593

Psychological Services:Salaries 830,137 844,717 (14,580) 822,730 Employee benefits 169,427 165,068 4,359 154,354 Purchased services 29,522 22,049 7,473 48,952 Supplies and materials 5,000 5,025 (25) 3,716 Capital outlay 8,150 4,265 3,885 304 Dues and fees 500 273 227 300

Total psychological services 1,042,736 1,041,397 1,339 1,030,356

87 Program:Salaries 150,500 149,329 1,171 171,635 Employee benefits 82,875 74,273 8,602 72,282 Purchased services 2,645 2,168 477 1,776

Total 87 program 236,020 225,770 10,250 245,693

88 Program:Salaries 56,500 63,029 (6,529) 58,331 Employee benefits 32,355 30,715 1,640 19,558 Purchased services 680 680 - 234

Total 88 program 89,535 94,424 (4,889) 78,123

89 Program:Salaries 134,000 109,452 24,548 144,357 Employee benefits 79,126 59,824 19,302 81,295 Purchased services 2,636 1,623 1,013 1,652

Total 89 program 215,762 170,899 44,863 227,304







92 Program:Salaries 46,000$ 136,931$ (90,931)$ 39,592 Employee benefits 24,012 62,924 (38,912) 13,385 Purchased services 490 490 - 220

Total 92 program 70,502.00 200,345 (129,843) 53,197

93 Program:Salaries - - - 128 Employee benefits - - - 1,241 Purchased services - 20 (20) -

Total 93 program - 20 (20) 1,369

209 Program:Salaries - 422 (422) 825 Employee benefits - 32 (32) 94 Total 209 program - 454 (454) 919

Total related services 8,171,456 8,214,891 (43,435) 7,926,864

Administrative:

Governing Board:Purchased services 80,300 50,722 29,578 60,311 Supplies and materials 500 592 (92) 164

Total governing board 80,800 51,314 29,486 60,475

Proviso Township Mental Health Commission - Hot Stuff:

Salaries 71,538 72,250 (712) 72,511 Employee benefits 12,384 12,384 - 5,547 Purchased services 6,001 6,099 (98) 10,816 Supplies and materials 77 77 - 2,160

Total proviso mental health commission - hot stuff 90,000 90,810 (810) 91,034







Proviso Township Mental Health Commission - Student

Transition ProgramPurchased services 28,000$ 28,000$ -$ 28,009$ Total proviso mental health commission - student transition 28,000 28,000 - 28,009$

Title IV Part B 21st Century Project Lot:

Salaries 18,644 - 18,644 23,518 Employee benefits 1,426 - 1,426 1,799 Purchased services 1,563 - 1,563 130 Supplies and materials 1,106 - 1,106 -

Total title IV part b 21st century project lot 22,739 - 22,739 25,447

Central Office:Salaries 661,959 661,129 830 602,790 Employee benefits 404,676 468,233 (63,557) 247,941 Purchased services 158,649 113,947 44,702 119,934 Supplies and materials 25,402 17,155 8,247 21,987 Capital outlay 3,140 3,249 (109) 1,515 Dues and fees 2,800 2,475 325 305 Total central office 1,256,626 1,266,188 (9,562) 994,472

Principals' and Supervisors' Offices:Salaries 906,962 894,960 12,002 869,843 Employee benefits 215,087 206,583 8,504 204,903 Purchased services 47,437 40,212 7,225 40,584 Supplies and materials 3,800 2,780 1,020 3,182 Capital outlay 3,830 2,270 1,560 1,858 Dues and fees 800 485 315 -

Total principals' offices 1,177,916 1,147,290 30,626 1,120,370

Data Processing Services:Supplies and materials - 12,324 (12,324) 11,027

Total data processing services - 12,324 (12,324) 11,027







Business Services:Salaries 355,405$ 331,539$ 23,866$ 276,499$ Employee benefits 102,760 97,461 5,299 78,578 Purchased services 110,130 147,590 (37,460) 106,361 Supplies and materials 1,000 1,019 (19) 467 Capital outlay 2,100 782 1,318 3,202 Dues and fees 900 835 65 581 Total business services 572,295 579,226 (6,931) 465,688

Total administrative 3,228,376 3,175,152 53,224 2,796,522

Total expenditures 23,132,450 22,299,746 832,704 21,574,832

Change in fund balance - budgetary basis -$ 739,680 735,700$ 634,190

Adjustments to GAAP basis:

Net settlement of prior year's fund balance with Member Districts (155,595) (1,159,770)

Change in fund balance 584,085 (525,580)

Fund balance, beginning of year 548,380 1,073,960

Fund balance, end of year 1,132,465$ 548,380$



Revenues

Advances from Member Districts 836,897$ 860,439$ 23,542$ 782,335$ Advances from non-member Districts 5,023 2,832 (2,191) 5,205 Intergovernmental:

Federal funding sources 229,865 222,626 (7,239) 163,475 Interest on investments 300 316 16 396 Other - 599 599 14,360

Total revenues 1,072,085 1,086,812 14,727 965,771

Expenditures

Operation and maintenance of plant services Salaries 289,700 292,317 (2,617) 281,312 Employee benefits 102,015 101,491 524 96,530 Purchased services 353,520 323,370 30,150 315,731 Supplies and materials 198,500 180,568 17,932 182,447 Capital outlay 128,350 130,942 (2,592) 52,308

Total expenditures 1,072,085 1,028,688 43,397 928,328

Change in fund balance - budgetary basis -$ 58,124 (28,670)$ 37,443


Net settlement of prior year's fund balance with Member Districts (56,100) 3,411

Change in fund balance 2,024 40,854

Fund balance (deficit), beginning of year 12,879 (27,975)

Fund balance (deficit), end of year 14,903$ 12,879$



OPERATIONS AND MAINTENANCE FUNDSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL




RevenuesAdvances from Member Districts 1,901,888$ 2,451,957$ 550,069$ 1,242,806$ State funding sources 3,501,513 3,803,575 302,062 3,698,905 Interest on investments 8,000 5,601 (2,399) 10,507

Total revenues 5,411,401 6,261,133 849,732 4,952,218

Expenditures

Transportation

Vehicle Operation Services Salaries 36,830 31,245 5,585 35,244 Employee benefits 9,820 8,245 1,575 9,297 Purchased services 5,352,250 5,409,442 (57,192) 5,004,366 Supplies and materials 6,000 4,116 1,884 4,670

Total vehicle operations services 5,404,900 5,453,048 (48,148) 5,053,577

Servicing and Maintenance Purchased services 6,000 2,541 3,459 4,017 Supplies and materials 501 227 274 276

Total servicing and maintenance 6,501 2,768 3,733 4,293

Total expenditures 5,411,401 5,455,816 (44,415) 5,057,870

Change in fund balance - budgetary basis -$ 805,317 805,317$ (105,652)


Net settlement of prior year's fund balance with Member Districts (21,579) (939,420)

Change in fund balance 783,738 (1,045,072)

Fund balance (deficit), beginning of year (658,990) 386,082

Fund balance (deficit), end of year 124,748$ (658,990)$


PROVISO AREA FOR EXCEPTIONAL CHILDRENDISTRICT SEJA 803TRANSPORTATION FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUALNON GAAP BUDGETARY BASIS

FOR THE YEAR ENDED JUNE 30, 2015

PROVISO AREA FOR EXCEPTIONAL CHILDREN - DISTRICT SEJA 803NOTES TO REQUIRED SUPPLEMENTARY INFORMATION


STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY

Budgetary Data

Except for the exclusion of on-behalf payments from other governments, discussed below, the budgeted amountsfor the Governmental Funds are adopted on the modified accrual basis, which is consistent with accountingprinciples generally accepted in the United States of America.

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

1. The Administration submits to the Board of Education a proposed operating budget for the fiscal yearcommencing 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 taxpayercomments.

3. Prior to September 30, the budget is legally adopted through passage of an resolution.

4. Management is authorized to transfer budget amounts, provided funds are transferred between the samefunction and object codes. The Board of Education is authorized to transfer up to a legal level of 10% of thetotal budget between functions within any fund; however, any revisions that alter the total expenditures ofany fund must be approved by the Board of Education, after following the public hearing process mandatedby law.

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

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

The budget amounts shown in the financial statements are as originally adopted because there were noamendments during the past fiscal year.

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 theemployer’s share of the Teachers Retirement System pension. The District does not budget for these amounts. Thedifferences between the budget and GAAP basis are as follows:

Revenues Expenditures

General Fund Budgetary Basis $ 23,039,426 $ 22,299,746To adjust for on-behalf payments received 4,116,682 -To adjust for on-behalf payments made - 4,116,682To adjust for net settlement of prior year's fund balance with Member Districts - 155,595

General Fund GAAP Basis $ 27,156,108 $ 26,572,023

Excess of Expenditures over Budget

For the year ended June 30, 2015, expenditures exceeded budget in the Transportation Fund by $44,415. Thisexcess was funded by available fund balance.

See Auditors' Report

- 58 -

- 59 -

BALANCE BALANCEJUNE 30, 2014 ADDITIONS REDUCTIONS JUNE 30, 2015

Assets

Cash and investments 34,434$ 51,654$ 45,975$ 40,113$

Total assets 34,434$ 51,654$ 45,975$ 40,113$

Liabilities

Due to activity fund organizations:

PAEC Center Programs 7,318$ 12,078$ 8,646$ 10,750$

PAEC Special Olympics 8,728 9,394 11,382 6,740

PAEC Early Childhood 3,597 2,043 - 5,640

PAEC MIE 2,160 5,156 3,040 4,276

PAEC Elementary 3,567 3,175 3,942 2,800

PAEC High School 6,103 6,253 5,693 6,663

HOTSTUFF 1,848 3,628 3,413 2,063

Soda 1,005 4,613 4,499 1,119

Fundraising 47 15 - 62

Lunch Money 61 5,299 5,360 -

Total liabilities 34,434$ 51,654$ 45,975$ 40,113$


AGENCY (STUDENT ACTIVITY) FUND SCHEDULE OF CHANGES IN ASSETS AND LIABILITIES


- 60 -

RESERVED FORBERKELEY BELLWOOD MAYWOOD BROADVIEWDISTRICT DISTRICT DISTRICT DISTRICT

87 88 89 92

Cash basis fundbalance (deficits) at June 30, 2014 428,478$ 150,552$ 631,876$ 46,505$

Net settlement of prior year's fund balances (428,478) (150,552) (631,876) (46,505)

Excess (deficiency) of advances from Member Districts over (under) allocation of net expenditures to Member Districts (8,673) (45,426) 62,559 16,139

Excess of nonmember District's expenditures over receipts - - - -

Non-Distributed excess costs resulting in reduction of fund balance - - - -

Cash basis fund balances (deficits) at June 30, 2015 (8,673)$ (45,426)$ 62,559$ 16,139$


SUMMARY OF RESERVED FUND BALANCES (DEFICITS)AS OF JUNE 30, 2015

- 61 -

HILLSIDE PROVISO TWSP. NON-DISTRICT HIGH SCHOOL MEMBER IMPREST AND

93 DISTRICT 209 DISTRICTS PETTY CASH TOTAL

10,500$ 827,861$ 234,667$ 8,400$ 2,338,839$

(10,500) (827,861) - - (2,095,772)

13,539 195,131 - - 233,269

- - 33,736 - 33,736

- - - - -

13,539$ 195,131$ 268,403$ 8,400$ 510,072$

Effect of Conversion to Modified Accrual and Other Adjustments:

Increase (Decrease) in Assets Receivable from Member Districts Intergovernmental Receivable 1,934,726 Summer Tuition Receivable 255,576

(Increase) Decrease in Liabilities Accounts Payable (976,077) Payable to Member Districts (233,267) Salaries and Wages Payable (218,914)

Modified accrual basis fund balances (deficits) at June 30, 2015 1,272,116$

Educational fund 1,132,465$ Operations and maintenance fund 14,903Transportation fund 124,748

Total 1,272,116$

- 62 -

BERKELEY BELLWOOD MAYWOODDISTRICT DISTRICT DISTRICT

87 88 89

Educational fund

Advances from Member Districts: Instructional/related services 4,409,557$ 1,827,026$ 1,953,181$ Administrative 803,118 515,585 326,890

Total Advances from Member Districts 5,212,675 2,342,611 2,280,071

Allocation of net expenditures to Member Districts (1)(5,249,204) (2,407,342) (2,264,072)

Excess (deficiency) of advances over (under) allocation of net expenditures - Educational Fund (36,529) (64,731) 15,999

Operations and maintenance fund

Advances from Member Districts 276,996 112,110 108,279

Allocation of net expenditures to Member Districts (2)(239,119) (94,963) (93,366)

Excess (deficiency) of advances over (under) allocation of net expenditures - Operations and Maintenance Fund 37,877 17,147 14,913

Transportation fund

Advances from Member Districts 519,801 182,583 571,764

Allocation of net expenditures to Member Districts (3) (452,371) (180,153) (527,733) Expenditures for noncontractual services to individual districts (77,451) (272) (12,384)

Excess (deficiency) of advances and interest over (under) allocation of net expenditures - Transportation Fund (10,021) 2,158 31,647

Excess (deficiency) of advances and interest from Member Districts over (under) allocation of net expenditures - Total (8,673)$ (45,426)$ 62,559$

(1) Allocation shown in the Educational Fund - Allocation of Net Expenditures to Member Districts schedule.(2) Allocation shown in the Operations and Maintenance Fund - Allocation of Net Expenditures to Member Districts schedule.(3) Allocation based upon percentage of actual costs applied to net expenditures (Transportation Fund - Summary of Net Contractual Transportation Costs Incurred by Districts).


ADVANCES FROM MEMBER DISTRICTS ANDALLOCATION OF NET EXPENDITURES TO MEMBER DISTRICTS - NON GAAP CASH BASIS


- 63 -

BROADVIEW HILLSIDE PROVISO TWSP.DISTRICT DISTRICT HIGH SCHOOL

92 93 DISTRICT 209 TOTAL

536,483$ 700,698$ 4,698,251$ 14,125,196$ 67,867 141,883 774,740 2,630,083

604,350 842,581 5,472,991 16,755,279

(594,128) (802,432) (5,282,509) (16,599,687)

10,222 40,149 190,482 155,592

20,568 36,120 306,366 860,439

(18,133) (37,458) (321,300) (804,339)

2,435 (1,338) (14,934) 56,100

48,906 40,587 1,088,316 2,451,957

(29,827) (65,818) (732,543) (1,988,445)

(15,597) (41) (336,190) (441,935)

3,482 (25,272) 19,583 21,577

16,139$ 13,539$ 195,131$ 233,269$

- 64 -


87 88 89

Adjusted instructional (1) 3,305,280$ 1,659,541$ 2,193,755$

Adjusted related services (2) 1,729,871 764,326 781,302

Administrative (3)828,425 516,102 322,797

Total Expenditures 5,863,576 2,939,969 3,297,854

Plus:Adjustment to ensure non-member district surplus retained by PAEC (96) (44) (41)

Less: Offsetting revenues - Federal sources - fiscal year 2015 cash receipts (4)

614,276 532,583 1,033,741

5,249,204$ 2,407,342$ 2,264,072$

(1) Allocation shown in the Allocation of Net Adjusted Functional Expenditures schedule.(2) Allocation shown in the Allocation of Net Adjusted Related Services Expenditures schedule.(3) Allocation shown in the Allocation of Net Administrative Expenditures schedule.(4) Allocation based upon IDEA flow-through, and IDEA preschool incentive grant student counts (unaudited).


EDUCATIONAL FUNDALLOCATION OF NET EXPENDITURES TO MEMBER DISTRICTS - NON GAAP CASH BASIS


- 65 -



254,750$ 519,447$ 5,610,714$ 13,543,487$

353,330 253,603 214,695 4,097,127

56,759 142,715 707,373 2,574,171

664,839 915,765 6,532,782 20,214,785

(11) (15) (97) (304)

70,700 113,318 1,250,176 3,614,794

594,128$ 802,432$ 5,282,509$ 16,599,687$

- 66 -

FULL-TIMEEQUIVALENTSTUDENTS ALLOCATED

(UNAUDITED) COST

Berkeley School District 87

P.A.E.C. Instructional: Mentally Impaired - Trainable 8.00 195,224$ Mentally Impaired - Trainable - direct - - Autistic 15.00 309,649 Autistic - direct - 35,969 Mentally Impaired - Severe 12.00 312,604 Mentally Impaired - Severe - direct - 44,166 Mentally Impaired - Educable 52.00 955,378 Mentally Impaired - Educable - direct Early childhood 46.00 812,764 Early childhood - direct - 8,029 BD / ED - Elementary School 19.00 465,996 BD / ED - Elementary School - direct - 15,097 Summer school N/A 88,147 Improvement of instruction N/A 62,257 Total Net Adjusted Instructional Expenditures Berkeley School District 87 3,305,280$

Bellwood School District 88

P.A.E.C. Instructional: Mentally Impaired - Trainable 7.00 170,821$ Mentally Impaired - Trainable - direct - - Autistic 14.00 289,005 Autistic - direct - 55,055 Mentally Impaired - Severe 2.50 65,126 Mentally Impaired - Severe - direct - 79,947 Mentally Impaired - Educable 20.00 367,453 Mentally Impaired - Educable - direct - - Early childhood 2.00 35,338 Early childhood - direct - 31,343 BD / ED - Elementary School 18.00 441,470 BD / ED - Elementary School - Direct - 32,420 Summer school N/A 36,824 Improvement of instruction N/A 54,739 Total Net Adjusted Instructional Expenditures Bellwood School District 88 1,659,541$


EDUCATIONAL FUNDALLOCATION OF NET ADJUSTED INSTRUCTIONAL EXPENDITURES - NON GAAP CASH BASIS


- 67 -


(UNAUDITED) COST




Maywood School District 89P.A.E.C. Instructional: Mentally Impaired - Trainable 9.00 219,628$ Mentally Impaired - Trainable - direct - 73,148 Autistic 13.00 268,362 Autistic - direct - 77,918 Mentally Impaired - Severe 19.00 494,957 Mentally Impaired - Severe - direct - 77,155 Mentally Impaired - Educable 26.00 477,689 Mentally Impaired - Educable - direct - 32,342 Early childhood - - Early childhood - Direct - - BD / ED - High School - - BD / ED - Elementary School 13.00 318,839 BD / ED - Elementary School - Direct - - Summer school N/A 46,393 Improvement of instruction N/A 107,324 Total Net Adjusted Instructional Expenditures Maywood School District 89 2,193,755$

Broadview School District 92

P.A.E.C. Instructional: Mentally Impaired - Trainable 2.00 48,805$ Autistic - - Autistic - direct - - Mentally Impaired - Severe 2.00 52,101 Outside classrooms: - - Mentally Impaired - Educable 4.00 73,491 Mentally Impaired - Educable - Direct - - Early childhood 1.00 17,669 Early childhood - direct - - BD / ED - Elementary School 2.00 49,052 BD / ED - Elementary School - direct - - Summer school N/A 6,379 Improvement of instruction N/A 7,253 Total Net Adjusted Instructional

Expenditures Broadview School District 92 254,750$

- 68 -


(UNAUDITED) COST




Hillside School District 93

P.A.E.C. Instructional: Mentally Impaired - Trainable 2.00 48,806$ Mentally Impaired - Severe 1.00 26,050 Mentally Impaired - Severe - direct - - Autistic 6.00 123,859 Outside classrooms: Mentally Impaired - Educable 7.00 128,609 Early childhood 8.00 141,350 Early childhood - direct - - BD / ED - High School - - BD / ED - Elementary School 1.00 24,526 BD / ED - Elementary School - Direct - - Summer school N/A 14,498 Improvement of instruction N/A 11,749 Total Net Adjusted Instructional Expenditures Hillside School District 93 519,447$

Proviso Township High School District 209P.A.E.C. Instructional: Mentally Impaired - Trainable 84.00 2,049,866$ Mentally Impaired - Trainable - direct - 127,929 Autistic 9.00 185,789 Autistic - direct - 51,770 Mentally Impaired - Severe 12.00 312,604 Mentally Impaired - Severe - direct - 142,617 Mentally Impaired - Educable - - Mentally Impaired - Educable - direct - - Early childhood - - BD / ED - High School 91.00 2,446,456 BD / ED - Elementary School 2.00 49,052 Summer school N/A 110,183 Improvement of instruction N/A 134,448

Total Net Adjusted Instructional Expenditures Proviso Township High School District 209 5,610,714$

- 69 -


(UNAUDITED) COST




Total Member Districts

P.A.E.C. Instructional: Mentally Impaired - Trainable 112.00 2,733,150$ Mentally Impaired - Trainable - direct - 201,077 Autistic 57.00 1,176,664 Autistic - direct - 220,712 Mentally Impaired - Severe 48.50 1,263,442 Mentally Impaired - Severe - direct - 343,885 Mentally Impaired - Educable 109.00 2,002,620 Mentally Impaired - Educable - direct - 32,342 Early childhood 57.00 1,007,121 Early childhood - direct - 39,372 BD / ED - High School 91.00 2,446,456 BD / ED - Elementary School 55.00 1,348,935 BD / ED - Elementary School - direct - 47,517 Summer school N/A 302,424 Improvement of instruction N/A 377,770 Total Net Adjusted Instructional Expenditures Member Districts 13,543,487$

Nonmember DistrictsP.A.E.C. Instructional: Mentally Impaired - Trainable 1.00 24,402$ Mentally Impaired - Trainable - direct - - Autistic - - Autistic - direct - - Mentally Impaired - Severe - - Mentally Impaired - Severe - direct - - Mentally Impaired - Educable - - Mentally Impaired - Educable - direct - - Early childhood - - BD / ED - Elementary School - - BD / ED - Elementary School - direct - - Summer school N/A 580 Total Net Adjusted Instructional Expenditures Nonmember Districts 24,982$

- 70 -


(UNAUDITED) COST




Total Adjusted InstructionalP.A.E.C. Instructional: Mentally Impaired - Trainable 113.00 2,757,552$ Mentally Impaired - Trainable - direct - 201,077 Autistic 57.00 1,176,664 Autistic - direct - 220,712 Mentally Impaired - Severe 48.50 1,263,442 Mentally Impaired - Severe - direct - 343,885 Mentally Impaired - Educable 109.00 2,002,620 Mentally Impaired - Educable - direct - 32,342 Early childhood 57.00 1,007,121 Early childhood - direct - 39,372 BD / ED - High School 91.00 2,446,456 BD / ED - Elementary School 55.00 1,348,935 BD / ED - Elementary School - direct 47,517 Summer school N/A 303,003 Improvement of instruction N/A 377,770 Total Net Adjusted Instructional Expenditures Adjusted Instructional 13,568,468$

- 71 -

MENTALLY MENTALLY MENTALLYIMPAIRED - IMPAIRED - IMPAIRED - TRAINABLE AUTISTIC SEVERE EDUCABLE

Instructional expenditures 2,477,242$ 1,135,711$ 1,262,993$ 1,582,240$

Plus allocation of related services expenditures: Nurse 56,038 28,267 24,052 54,054 Occupational and physical therapy 141,227 91,020 195,082 160,688 Psychological 63,433 28,378 28,378 65,937 Speech - language 230,007 110,680 110,680 174,231 Adaptive physical education 10,974 - - 14,200 Social workers 120,545 82,875 50,478 60,273 Assistive Technology 56,280 24,120 20,904 32,160 Lunch program 5,628 2,839 2,416 5,429

684,132 368,179 431,990 566,972

Total Adjusted Instructional Expenditures 3,161,374 1,503,890 1,694,983 2,149,212

Less offsetting revenues - state funding 202,739 106,513 87,656 114,251

Net Adjusted Instructional Expenditures 2,958,635$ 1,397,377$ 1,607,327$ 2,034,961$


EDUCATIONAL FUNDNET ADJUSTED INSTRUCTIONAL EXPENDITURES FOR ALLOCATION TO MEMBER DISTRICTS-NON GAAP CASH BASIS


- 72 -

IMPROVEMENTEARLY BD / ED BD / ED SUMMER OF

CHILDHOOD HIGH SCHOOL ELEMENTARY SCHOOL INSTRUCTION TOTAL

441,867$ 2,150,844$ 1,181,704$ 303,006$ 377,770$ 10,913,377$

28,267 41,161 27,275 - - 259,114

297,049 2,770 14,798 - - 902,634 45,071 57,591 28,378 317,166

189,861 35,703 51,571 - - 902,733 - - - - - 25,174

62,533 292,323 165,750 - - 834,777 8,844 38,592 12,864 - - 193,764

- 4,134 2,739 - - 23,185

631,625 472,274 303,375 - - 3,458,547

1,073,492 2,623,118 1,485,079 303,006 377,770 14,371,924

27,000 176,662 88,626 - - 803,447

1,046,492$ 2,446,456$ 1,396,453$ 303,006$ 377,770$ 13,568,477$

- 73 -


EDUCATIONAL FUNDALLOCATION OF NET ADJUSTED RELATED SERVICES EXPENDITURES - NON GAAP CASH BASIS


FULL-TIMEEQUIVALENT

PROFESSIONALS ALLOCATED(UNAUDITED) COST

Berkeley School District 87

Occupational and physical therapy 2.086 140,957$ Occupational and physical therapy - Direct - - Occupational and physical therapy - Direct - - Adaptive physical education 0.201 10,279 Speech - language 6.626 525,708 Speech - language - Direct - 6,725 Social workers 5.260 396,292 Social workers - Direct - - Psychological services 5.15 429,845 Psychological services - Direct - 5,243 RLD/RBD - - Assistive technology 0.07 5,628 87 Programs: One-on-One 5.87 209,194

Total Berkeley School District 87 1,729,871$

Bellwood School District 88

Occupational and physical therapy 2.976 201,097$ Occupational and physical therapy - Direct - - Adaptive physical education 0.06 3,171 Speech - language 5.64 447,796 Speech - language - Direct - - Social workers - - Social workers - Direct - - Psychological services 0.20 16,693 Psychological services - Direct - 1,498 RLD/RBD - Assistive technology 0.05 4,020 88 Programs 2.36 90,051

Total Bellwood School District 88 764,326$

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FULL-TIMEEQUIVALENT


Maywood School District 89

Occupational and physical therapy 5.757 389,017$ Occupational and physical therapy - Direct - - Adaptive physical education 0.19 9,461 Speech - language 2.35 186,291 Speech - language - Direct - - Social workers - - Social workers - Direct - - Psychological services 0.45 37,559 Psychological services - Direct - 749 RLD/RBD - - Assistive technology 0.05 4,020 89 Programs 5.00 154,205

Total Maywood School District 89 781,302$

Broadview School District 92

Occupational and physical therapy 1.012 68,384$ Occupational and physical therapy - Direct - - Adaptive physical education - - Speech - language 0.72 56,728 Speech - language - Direct - - Social workers - - Social workers - Direct - - Psychological services 0.10 8,347 Psychological services - Direct - 19,451 Assistive technology 0.03 2,412 92 Programs 5.45 198,008

Total Broadview School District 92 353,330$

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FULL-TIMEEQUIVALENT


Hillside School District 93

Occupational and physical therapy 0.433 29,259$ Occupational and physical therapy - Direct - - Adaptive physical education 0.062 3,171 Speech - language 0.04 3,253 Speech - language - Direct - 475 Social workers 1.06 79,861 Social workers - Direct - - Psychological services 1.60 133,544 Psychological services - Direct - - RLD/RBD - Assistive technology 0.05 4,020 District 93 One-on-One Program 0.10 20

Total Hillside School District 93 253,603$

Proviso Township High School District 209

Occupational and physical therapy 0.335 22,637$ Occupational and physical therapy - Direct - - Adaptive physical education - - Speech - language 2.33 185,021 Speech - language - Direct - - Social workers - - Social workers - Direct - - Psychological services - - Psychological services - Direct - 3,365 RLD/RBD - Assistive Technology 0.04 3,218 209 Program 0.10 454

Total Proviso Township High School District 209 214,695$

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FULL-TIMEEQUIVALENT


Total Adjusted Related Services

Occupational and physical therapy 12.60 851,351$

Occupational and physical therapy - Direct - - Adaptive physical education 0.51 26,082 Speech - language 17.71 1,404,796

Speech - language - Direct - 7,200

Social workers 6.32 476,153

Social workers - Direct - - Psychological services 7.50 625,987

Psychological services - Direct - 30,306

- - Assistive Technology 0.29 23,316 87 Program 5.87 209,194 88 Program 2.36 90,051 89 Program 5.00 154,205 92 Program 5.45 198,008 93 Program 0.10 20 209 Program 0.10 454

Total Adjusted Related Services 4,097,123$

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OCCUPATIONALAND ADAPTIVE

PHYSICAL PHYSICAL SPEECH - SOCIAL LUNCH PSYCHOLOGICALNURSE THERAPY EDUCATION LANGUAGE WORKERS PROGRAM SERVICES

Related services expenditures 272,140$ 1,886,549$ 57,268$ 2,461,562$ 1,436,325$ 164,843$ 1,011,090$

Less offsetting revenues: State funding 13,026 132,564 6,012 154,033 97,394 - 67,936 Other local revenue - - - - 28,000 - Food service program - - - - - 141,655 -

Total 259,114 1,753,985 51,256 2,307,529 1,310,931 23,188 943,154

Less expendituresallocated to instructionalprograms 259,114 902,634 25,174 902,732 834,778 23,188 317,166

Net Adjusted Related Services Expenditures -$ 851,351$ 26,082$ 1,404,797$ 476,153$ -$ 625,988$

NOTE: Related services expenditures above exclude OT/PT, Speech-Language, Social Worker, and Psychological Services expenditures that directly relate to a particular District. Those expenditures are shown in the Allocation of Net Adjusted Related Services Expenditures schedule.


EDUCATIONAL FUNDNET ADJUSTED RELATED SERVICES EXPENDITURES FOR ALLOCATION TO MEMBER DISTRICTS - NON GAAP CASH BASIS


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RLD/ ASSISTIVE 87 88 89 92 93 209RBD TECHNOLOGY PROGRAM PROGRAM PROGRAM PROGRAM PROGRAM PROGRAM TOTAL

-$ 221,290$ 225,770$ 94,423$ 170,898$ 200,346$ 20$ 454$ 8,202,978$

- 4,208 16,576 4,372 16,693 2,338 - - 515,152 - - - - - 28,000 - - - - - - - - 141,655

684,807 - 217,082 209,194 90,051 154,205 198,008 20 454 7,518,171

- 193,764 - - - - - - 3,458,550

-$ 23,318$ 209,194$ 90,051$ 154,205$ 198,008$ 20$ 454$ 4,059,621$

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EDUCATIONAL FUNDALLOCATION OF NET ADMINISTRATIVE EXPENDITURES - NON GAAP CASH BASIS


BERKELEY BELLWOODDISTRICT DISTRICT

87 88

General administrative expenditures (1) 442,877$ 185,051$

General administrative (support services admin.) (3) 106,934 47,481

Principal's administrative expenditures (1) 159,108 66,481

Supervisor's administrative expenditures (2)222,808 267,349

Total Administrative Expenditures 931,727 566,362

Less: Medicaid Administrative Outreach Funds (4)103,302 50,260

Net Administrative Expenditures 828,425$ 516,102$

(1) Allocated based upon student F.T.E.'s in District 803 programs as shown in the Summary of Cost Distribution Factors.

(2) Allocated based upon District 803 supervisory staff FTE shown in the Summary of Cost Distribution Factors.

(3) Allocated based upon relative amounts of support services purchased as shown in the Summary of Cost Distribution Factors.

(4) Allocated based upon relative amounts of Medicaid Administrative Outreach Funds per the Summary of Cost Distribution Factors.

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MAYWOOD BROADVIEW HILLSIDE PROVISO TWSP.DISTRICT DISTRICT DISTRICT HIGH SCHOOL

89 92 93 DISTRICT 209 TOTAL

233,061$ 32,057$ 72,775$ 553,483$ 1,519,304$

48,586 20,782 15,755 13,154 252,692

83,729 11,517 26,145 198,844 545,824

- - 44,487 - 534,644

365,376 64,356 159,162 765,481 2,852,464

42,579 7,597 16,447 58,108 278,293

322,797$ 56,759$ 142,715$ 707,373$ 2,574,171$

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GENERAL PRINCIPAL SUPERVISORY TOTAL

Administrative expenditures: Governing board 52,098$ -$ -$ 52,098$ Central office 1,290,330 - - 1,290,330 Principal's administrative expenditures - 572,945 573,809 1,146,754 Business services 566,826 - - 566,826

Total administrative expenditures 1,909,254 572,945 573,809 3,056,008

Less Support Services - Admin Cost 252,691 - - 252,691

Less offsetting revenues: State funding 13,563 26,074 39,112 78,749 Federal funding 4,899 - - 4,899 Other 115,883 - - 115,883

Total offsetting revenues 134,345 26,074 39,112 199,531

Less allocation to nonmember districts 2,913 1,047 - 3,960

Net administrative expenditures 1,519,305$ 545,824$ 534,697$ 2,599,826$


EDUCATIONAL FUNDNET ADMINISTRATIVE EXPENDITURES FOR ALLOCATION TO MEMBER DISTRICTS - NON GAAP CASH BASIS


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87 88 89

P.A.E.C. Instructional (1) 57,267$ 38,451$ 67,084$

P.A.E.C. Administrative (1) 31,822 13,296 16,746

P.A.E.C. Administrative 7,684 3,412 3,491 (Supp. Svcs. Bldg. Admin.) (2)

BD / ED programs (1) 40,388 38,262 27,634

Early Childhood (1) 61,224 2,663.00 -

MIE (1) 76,120 29,277 38,060

OT/PT (3)1,304 1,861 3,599

Total expenditures 275,809 127,222 156,614

Plus:

Adjustment to ensure non-member district surplus retained by PAEC (1) - -

Less:Offsetting Revenue - Federal sources - fiscal year 2015 cash receipts 36,689 32,259 63,248

Allocation of Net Expenditures to Member Districts 239,119$ 94,963$ 93,366$

(1) Allocated based upon student F.T.E.'s in District 803 programs as shown in the Summary of Cost Distribution Factors.

(2) Allocated based on relative amounts of Support Services purchased shown in the Summary of Cost Distribution Factors.

(3) Allocated based on OT/PT FTE's in district programs.


OPERATIONS AND MAINTENANCE FUNDALLOCATION OF NET EXPENDITURES TO MEMBER DISTRICTS - NON GAAP CASH BASIS


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BROADVIEW HILLSIDE PROVISO TWSP. TOTALDISTRICT DISTRICT HIGH SCHOOL MEMBER NONMEMBER

92 93 DISTRICT 209 DISTRICTS DISTRICTS TOTAL

6,545$ 14,726$ 171,802$ 355,875$ 1,636$ 357,511$

2,303 5,229 39,770 109,166 209 109,375

1,492 1,131 947 18,157 - 18,157

4,251 2,126 187,806 300,467 - 300,467

1,328 10,652 - 75,867 - 75,867

5,855 10,247 - 159,559 - 159,559

633 271 209 7,877 - 7,877

22,407 44,382 400,534 1,026,968 1,845 1,028,813

- - (1) (2) - (2)

4,274 6,924 79,233 222,627 - 222,627

18,133$ 37,458$ 321,300$ 804,339$ 1,845$ 806,184$

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P.A.E.C.INSTRUCTIONAL ADMINISTRATIVE HIGH SCHOOL ELEMENTARY

Expenditures

Salaries 159,077$ 53,026$ 38,330$ 24,531$ Employee benefits 56,560 18,854 12,712 8,136Purchased services 75,442 25,147 34,477 22,066Supplies and materials 66,432 22,144 45,751 29,281Capital outlay - 9,274 52,285 32,898

Total expenditures 357,511 128,445 183,555 116,912

Less non-member expenditures 1,636 209 - -

Less support services - admin. cost - 18,156 - -

State funding - - - - Interest & Misc - 915 - -

Net expenditures for allocation to member districts 355,875$ 109,165$ 183,555$ 116,912$

P.A.E.C.


OPERATIONS AND MAINTENANCE FUNDNET EXPENDITURES FOR ALLOCATION TO MEMBER DISTRICTS - NON GAAP CASH BASIS


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MENTALLYEARLY IMPAIRED -

CHILDHOOD EDUCABLE OT/PT TOTAL

11,499$ 3,554$ 2,300$ 292,317$ 3,814 652 763 101,491

10,343 154,863 2,070 324,408 13,725 491 2,744 180,568 36,485 - - 130,942

75,866 159,560 7,877 1,029,726

- - - 1,845

- - - 18,156

- - - - - - - 915

75,866$ 159,560$ 7,877$ 1,008,810$

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TRANSPORTATION FUNDNET EXPENDITURES FOR ALLOCATION TO MEMBER DISTRICTS - NON GAAP CASH BASIS


Expenditures 5,312,766$

Less:

Expenditures for noncontractual services to District's 87, 88, 89, 92 and 209 441,935

Total expenditures 4,870,831

Less: Offsetting revenues State funding 2,876,785 Adjustment for cumulative under distribution - Other 5,601

Net expenditures for allocation to member districts 1,988,445$

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NETCONTRACTUAL

COSTSINCURRED PERCENT

Berkeley School District 87 452,371$ 22.75%

Bellwood School District 88 180,153 9.06%

Maywood School District 89 527,733 26.54%

Broadview School District 92 29,827 1.50%

Hillside School District 93 65,818 3.31%

Proviso Township High School District 209 732,543 36.84%

Total 1,988,445$ 100.00%


TRANSPORTATION FUNDSUMMARY OF NET CONTRACTUAL TRANSPORTATION COSTS INCURRED BY DISTRICTS - NON GAAP CASH BASIS

FOR THE YEAR ENDED JUNE 30 2015

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Receipts

Instructional 61,693$

Operations and maintenance 2,832 Transportation Fund -

Total receipts 64,525

Expenditures

Instructional: Mentally Impaired - Severe - District 91 - Mentally Impaired - Educable - District 91 - Mentally Impaired - Severe - Direct - District 208 -

BD / ED Elementary School - District 45 - BD / ED Elementary School - District 98 - BD / ED Eleme BD / ED Elementary School - District 212 - BD / ED Elementary School - Direct - District 98 - Autistic - District 91 - Autistic - District 97 - Autistic - Direct District 91 - Autistic - Direct District 97 -

Mentally Impaired - Trainable - District 91 - Mentally Impaired - Trainable - District 94 24,403 Mentally Impaired - Trainable - District 212 - Mentally Impaired - Trainable - Direct - District 97 -

Related Services Psychological services - Improvement of instruction Administration:

District 45 - District 94 2,913 District 98 - District 212 -

Summer school - out of district 580

Principal's services:District 45 - District 94 1,047 District 98 - District 212 -

Total instructional 28,943


NONMEMBER DISTRICTSSTATEMENT OF RECEIPTS, EXPENDITURES AND CHANGES IN FUND BALANCE - NON GAAP CASH BASIS


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NONMEMBER DISTRICTSSTATEMENT OF RECEIPTS, EXPENDITURES AND CHANGES IN FUND BALANCE - NON GAAP CASH BASIS


Operations and maintenance:District 45 -$ District 94 1,846 District 98 - District 212 -

Total operations and maintenance 1,846

Total expenditures 30,789

Excess of receipts over expenditures 33,736

Beginning fund balance 234,667

Ending fund balance 268,403$

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SUMMARY OF COST DISTRIBUTION FACTORSFOR THE YEAR ENDED JUNE 30, 2015

BERKELEY BELLWOOD MAYWOOD DISTRICT DISTRICT DISTRICT

87 88 89

Full-Time Equivalent Supervisory Staff:

Number 2.50 3.00 0.00

Percent 41.67% 50.00% 0.00%

FACTS Child Counts:

94-142 - IDEA - Number 413 363 712

94-142 - IDEA - Percent 16.48% 14.49% 28.41%

Pre-School - Number 87 58 88

Pre-School - Percent 34.66% 23.11% 35.05%

PAEC District 803 Student F.T.E.:

Number 152.00 63.50 80.00

Percent 29.15% 12.18% 15.34%

PAEC District 803 Early Childhood Student F.T.E.:

Number 46.00 2.00 0.00

Percent 80.70% 3.51% 0.00%

Purchased Support Services:

Amount 1,717,934$ 762,809$ 780,558$

Percent 42.32% 18.79% 19.23%

Medicaid Administrative Outreach Funds:

Percent 37.12% 18.06% 15.30%

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0.00 0.50 0.00 6.00

0.00% 8.32% 0.00% 99.99%

48 78 892 2,506

1.92% 3.11% 35.59% 100.00%

8 10 N/A 251

3.19% 3.99% 0.00% 100.00%

11.00 25.00 190.00 521.50

2.11% 4.79% 36.43% 100.00%.

1.00 8.00 0.00 57.00

1.75% 14.04% 0.00% 100.00%

333,878$ 253,111$ 211,328$ 4,059,618$

8.22% 6.23% 5.22% 100.01%

2.73% 5.91% 20.88% 100.00%

PROVISO AREA FOR EXCEPTIONAL CHILDREN ......rel630 990 3131 fax 630 990 0039 bakenilly.com We have audited the accompanying financial statements of the governmental activities, each

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