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Rich Township High School District 227

Comprehensive AnnualFinancial Report

fiscal year ending June 30, 2008

RICH TOWNSHIP HIGH SCHOOL DISTRICT 22720000 Governors Drive, Suite 200 • Olympia Fields, IL 60461

serving all or part of the communities ofCHICAGO HEIGHTS • COUNTRY CLUB HILLS • MATTESON • OLYMPIA FIELDS

PARK FOREST • RICHTON PARK • TINLEY PARK • UNIVERSITY PARK

McGladrey & Pullen, LLP is a member firm of RSM International – an affiliation of separate and independent legal entities.

RICH TOWNSHIP HIGH SCHOOL DISTRICT NO. 227

OLYMPIA FIELDS, ILLINOIS

COMPREHENSIVE ANNUAL FINANCIAL REPORT

FOR THE YEAR ENDED JUNE 30, 2008

Submitted by: Business Office

Ilandus Hampton

Director of Fiscal Affairs

Contents Introductory Section Transmittal Letter I - VIII Organization Chart IX List of Principal Officials X Certificate of Achievement for Excellence in Financial Reporting XI Financial Section Independent Auditor's Report 1 – 2 Required Supplemental Information

Management’s Discussion and Analysis (MD&A) 3 – 12

Basic Financial Statements Government-Wide Financial Statements (GWFS)

Statement of Net Assets 13 Statement of Activities 14

Fund Financial Statements (FFS)

Governmental Funds: Balance Sheet - Governmental Funds 15 Reconciliation of the Governmental Funds Balance Sheet

to the Statement of Net Assets 16 Statement of Revenues, Expenditures and Changes in Fund Balance -

Governmental Funds 17 Reconciliation of the Governmental Funds Statement of Revenues,

Expenditures and Changes in Fund Balance to the Statement of Activities 18 Fiduciary Funds:

Statement of Fiduciary Assets and Liabilities - Agency Fund 19

Notes to Financial Statements 20 – 36

Required Supplemental Information Schedule of Funding Progress - Illinois Municipal Retirement Fund 37 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - Budgetary and GAAP Basis: General Fund 38 IMRF/Social Security Fund 39

Note to Required Supplementary Information 40 – 41 Supplemental Information

Combining Major Governmental Funds: Combining Balance Sheet - General Fund, By Accounts 42 Combining Schedule of Revenues, Expenditures and Changes in Fund Balance -

Budget and Actual - Budgetary and GAAP Basis - General Fund, By Accounts 43 – 44

Contents Financial Section (Continued)

Combining Nonmajor Governmental Funds: Combining Balance Sheet - By Fund Type - Nonmajor Governmental Funds 45 Combining Statement of Revenues, Expenditures and Changes in Fund Balance -

By Fund Type - Nonmajor Governmental Funds 46 Schedule of Revenues, Expenditures and Changes in Fund Balance -

Budget and Actual - Budgetary and GAAP Basis: Transportation Fund 47 Working Cash Fund 48 Site and Construction Fund 49 Fire Prevention and Life Safety Fund 50 Bond and Interest Fund 51

Schedule of Debt Service Requirements 52 – 53 Statistical Section Statistical Section Fly Sheet 54 Financial Trends Information Net Assets by Component 55 Schedule of Changes in Net Assets 56 – 57 Schedule of Fund Balance, Governmental Funds 58 Schedule of Changes in Fund Balance, Governmental Funds 59 Revenue Capacity Information Assessed Value and Estimated Actual Value of Taxable Property 60 Property Tax Rates – Direct and Overlapping Governments 61 -62 Representative Ten Largest Taxpayers 63 Schedule of Property Tax Rates, Extensions and Collections 64 Debt Capacity Information Outstanding Debt by Type 65 Computation of Direct and Overlapping Bonded Debt 66 Legal Debt Margin Information 67 Demographic and Economic Information Demographic and Economic Statistics 68 Principal Employers 69 Operating Information Full-Time Equivalent District Employees by Type 70 Operating Statistics 71

McGladrey & Pullen, LLP is a member firm of RSM International – an affiliation of separate and independent legal entities. 1

Independent Auditor's Report President and Members of the Rich Township Trustees of Schools

and the Board of Education Rich Township High School District No. 227 Olympia Fields, Illinois We have audited the accompanying financial statements of the governmental activities, each major fund and the aggregate remaining fund information of Rich Township High School District No. 227 as of and for the year ended June 30, 2008, which collectively comprise the District’s basic financial statements as listed in the table of contents. These financial statements are the responsibility of the District's management. 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 of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to 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 Rich Township High School District No. 227 as of June 30, 2008, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated _________________ on our consideration of the District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards, and should be considered in assessing the results of our audit.

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The accompanying required supplemental information, which includes management’s discussion and analysis (pages 3 – 12, schedule of funding progress (page 37) and budgetary schedules and related note (pages 38 – 41) are not a required part of the basic financial statements but are supplemental information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the District’s basic financial statements. The combining and individual fund financial statements and other schedules, listed in the table of contents as supplementary data, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. The accompanying introductory and statistical sections, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements. This information has not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on it.

Chicago, Illinois Report Date

Required Supplemental Information

Management’s Discussion And Analysis (MD&A)

Rich Township High School District No. 227 Management’s Discussion and Analysis

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This section of Rich Township High School District No. 227’s annual financial report presents its discussion and analysis of the District’s financial performance during the fiscal year ended June 30, 2008. Please read it in conjunction with the District’s financial statements. The Management’s Discussion and Analysis (MD&A) is an element of the new reporting model adopted by the Governmental Accounting Standards Board (GASB) in their Statement No. 34, Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local Governments, issued June 1999.

Financial Highlights

• The assets of the District exceeded its liabilities at the close of the fiscal year by $39.3 million (net assets). Of this amount, $2.8 million is unrestricted, and the remaining balance is invested in capital assets, net of related debt.

• In total, net assets increased by $0.2 million. The increase is due to revenues increasing at a rate faster than

expenses.

• General revenues were $59.9 million or 84 percent of all revenue. Program specific revenues in the form of charges for services and operating grants and contributions were $11.2 million or 16 percent of total revenues of $71.1 million.

• In the Fund Financial statements, expenditures exceeded revenues overall by $23.8 million in the

Governmental Funds. This was mainly driven by a $23.5 million deficit in the General Fund (Education, Operations and Maintenance accounts), a deficit of $0.5 million in the IMRF/Social Security Fund, a deficit of $0.3 million in the Bond and Interest Fund, and a surplus of $0.5 million in the nonmajor funds (Transportation, Working Cash, Site and Construction, Fire Prevention and Life Safety). The deficit in the General Fund was primarily due to capital spending related to various construction contracts. In total, the District’s governmental funds’ combined fund balance decreased from $74.6 million to $50.8 million in the current year. Of the year-end fund balance in the Fund Financial statements, $50.6 million is available to meet the District’s obligations to citizens, vendors and creditors (unreserved fund balance).


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Overview of the Financial Statements

This annual report consists of three parts: management’s discussion and analysis (this section), the basic financial statements, and required supplementary information. The basic financial statements include two kinds of statements that present different views of the District:

• The first two statements are government-wide financial statements that provide both short-term and long-term information about the District’s overall financial status.

• The remaining statements are fund financial statements that focus on individual parts of the District, reporting

the District’s operations in more detail than the government-wide statements.

• The governmental funds statements tell how basic services such as regular and special education were financed in the short term as well as what remains for future spending.

• Fiduciary funds statements provide information about the financial relationships in which the District acts

solely as a trustee or agent for the benefit of others. The financial statements also include notes that explain some of the information in the statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the financial statements. Figure A-1 shows how the various parts of this annual report are arranged and related to one another.


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Figure A-1 Organization of Rich Township High School District No. 227 Annual Financial Report This report also contains other supplemental information in addition to the basic financial statements.

Summary Detail

Management’s Discussion

and Analysis

Basic Financial

Statements


Government-Wide

Financial Statements

Fund Financial

Statements

Notes to the Financial

Statements


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Government-Wide Statements The government-wide statements report information about the District as a whole using accounting methods similar to those used by private-sector companies. The statement of net assets includes all of the District’s assets and liabilities. All of the current year’s revenues and expenses are accounted for in the statement of activities regardless of when cash is received or paid. The two government-wide statements report the District’s net assets and how they have changed. Net assets – the difference between the District’s assets and liabilities – is one way to measure the District’s financial health or position.

• Over time, increases or decreases in the District’s net assets are an indicator of whether its financial position is improving or deteriorating, respectively.

• To assess the District’s overall health, you need to consider additional non-financial factors such as changes in the District’s property tax base and the condition of school buildings and other facilities.

In the government-wide financial statements, the District’s activities are all categorized as governmental activities. All of the District’s basic services are included here, such as regular and special education, transportation, and administration. Property taxes and state aid finance most of these activities. Fund Financial Statements Rich Township High School District No. 227’s fund financial statements provide more detailed information about the District’s funds, focusing on its most significant or “major” funds – not the District as a whole. Funds are accounting devices the District uses to keep track of specific sources of funding and spending on particular programs:

• Some funds are required by state law and by bond covenants. • The District establishes other funds to control and manage money for particular purposes (such as repaying

its long-term debts) or to show that it is properly using certain revenues (such as Working Cash). The District has two categories of funds:

• Governmental funds: Most of the District’s basic services are included in governmental funds, which generally focus on (1) how cash and other financial assets that can readily be converted to cash flow in and out and (2) the balances left at year-end that are available for spending. Consequently, the governmental funds statements provide a detailed short-term view that helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance the District’s programs. Because this information does not encompass the additional long-term focus of the government-wide statements, additional information after each of the governmental funds statements explains the relationship (or differences) between them.

• Fiduciary funds: The District is the trustee, or fiduciary, for assets that belong to others, such as the student

activities funds. The District is responsible for ensuring that the assets reported in these funds are used only for their intended purposes and by those to whom the assets belong. The District excludes these activities from the government-wide financial statements because it cannot use these assets to finance its operation.


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Financial Analysis of the District as a Whole

Net assets: The District’s combined net assets on June 30, 2008 totaled $39.3 million. (See Figure A-2). Figure A-2 Condensed Statement of Net Assets (in millions of dollars) Governmental Activities 2008 2007 Current and other assets $ 79.1 $102.0 Capital assets 49.8 29.0 Noncurrent assets 1.4 1.5 Total assets 130.3 132.5 Current and other liabilities 31.4 30.7 Long-term debt outstanding 59.6 62.7 91.0 93.4 Net assets Invested in capital assets, net of related debt 36.5 15.1 Unrestricted 2.8 24.0 Total net assets $39.3 $39.1 The District’s stable financial position is the product of many factors. The Board of Education is determined to maintain a balanced budget. With a limited supply of funding, the Board of Education has had to reallocate existing resources to continue meeting its educational goals. Changes in net assets: For the year ended June 30, 2008, the District’s total revenues were $71.1 million (See Figure A-3.) Real estate taxes accounted for most of the District’s revenue, contributing about 63.3 cents of every dollar raised. (See Figure A-4.) Another 16.0 cents came from state aid and formula grants and the remainder from fees charged for services and miscellaneous sources.


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For the year ended June 30, 2008, the total cost of all programs and services was $70.9 million. The District’s expenses are predominantly related to instruction, pupil services, and administration and business (78 percent). (See Figure A-5.) The District’s transportation activities accounted for 4.0 percent of total costs. Total revenue exceeded expenditures, increasing net assets by $0.2 million over last year.

Figure A-3Changes in Net Assets from Operating Results(in millions of dollars)

Governmental Percentage Governmental Percentage Activities 2008 of Total Activities 2007 of Total

RevenuesProgram revenues

Charges for services $1.7 2.4% $1.2 2.0%Operating grants and contributions 9.5 13.4% 7.5 12.9%

General revenuesTaxes 45.0 63.3% 35.9 61.7%State aid and formula grants 11.4 16.0% 10.3 17.7%Other 3.5 4.9% 3.3 5.7%

Total revenues $71.1 100% $58.2 100%

ExpensesInstruction $35.8 50.6% $32.3 53.2%Pupil and instructional services 8.8 12.5% 7.1 11.7%Administration and business 10.6 15.0% 10.0 16.5%Maintenance and operations 4.4 6.2% 3.9 6.4%Transportation 2.8 4.0% 2.2 3.6%Other 8.5 11.7% 5.2 8.6%

Total expenses $70.9 100% $60.7 100%

Change in net assets $0.2 ($2.5)

Net assets:July 1 $39.1 $41.6

June 30 $39.3 $39.1


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Figure A-4 2008 Government-Wide Revenues By Source

State Formula Aid & Formula Grants

16.0%Other4.9%

Taxes63.3%

Operating Grants & Contributions

13.4%

Charges for Services2.4%

Figure A-5 2008 Government-Wide Expenses

Transportation4.0%

Pupil & Instructional Services12.5%

Maintenance & Operations

6.2%

Administration & Business

15.0%

Other11.7%

Instruction50.6%


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Governmental Activities Revenues for the District’s governmental activities were $71.1 million in 2008 and $58.2 million in 2007. Total expenses were $70.9 million and $60.7 million, respectively. Net assets increased by $0.2 million in 2008 and decreased by $2.5 million in 2007. The stable health of the District’s finances can be credited to both a solid real estate tax base and budgetary controls put in place by the Board of Education.

• Expected increases in real estate values mitigated the negative impact of increased property tax refunds. The District allocated these refunds to minimize the impact on the Bond and Interest Fund that accumulates the resources to pay off bonded debt and the General Fund that finances the educational program.

Figure A-6 presents the cost of six major District activities: instruction, pupil and instructional services, administration and business, maintenance and operations, transportation and other. The table also shows each activity’s net cost (total cost less fees generated by the activities and intergovernmental aid provided for specific programs). The net cost shows the financial burden placed on the District’s taxpayers by each of these functions.

• The cost of all governmental activities was $70.9 million and $60.7 million in 2008 and 2007, respectively. • Some of the cost was financed by the users of the District’s programs ($1.7 million in 2008 and $1.2 million in

2007). • The federal and state governments subsidized certain programs with operating grants and contributions

($9.5 million and $7.5 million in 2008 and 2007, respectively). • Most of the District’s costs, however, were financed by District taxpayers.

Figure A-6Net Cost of Governmental Activities (in millions of dollars)

Total Cost Net Costs Total Cost Net Costsof Services of Services of Services of Services

2008 2008 2007 2007

Instruction 35.8$ 28.1$ 32.3$ 26.8$ Pupil and instructional services 8.8 8.6 7.1 6.8 Administration and business 10.6 8.7 10.0 8.3 Maintenance and operations 4.4 4.4 3.9 3.9 Transportation 2.8 1.5 2.2 1.0 Other 8.5 8.4 5.2 5.2

TOTAL 70.9$ 59.7$ 60.7$ 52.0$


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Financial Analysis of the District’s Funds

As the District completed the year, its governmental funds reported combined fund balances of $50.8 million. Revenues for the District’s governmental activities were $71.1 million, while total expenditures were $94.9 million. The General Fund experienced a current year operation deficit of $23.5 million. This deficit was due to capital outlay expenditures of approximately $31.2 million. The IMRF/Social Security Fund decreased its fund balance by $0.5 million. This decrease in fund balance has been occurring for the past several years and can be attributed to the District’s main revenue source, property taxes, not increasing at the same level as employee benefits. The Bond and Interest Fund decreased its fund balance by $0.3 million in the current year. This slight decrease can be attributed to various transactions relating to repayment of debt. General Fund Budgetary Highlights Although the District’s final budget for the General Fund anticipated that expenditures would exceed revenues by $34.1 million, the actual deficit was approximately $23.5 million for the year. This was due to less capital outlay expenditures than expected. In addition, actual revenues were approximately $4.1 million higher than budgeted revenues. This is mainly due to the District receiving more revenue for property taxes, state aid, and interest than anticipated.

Capital Asset and Debt Administration Capital Assets By the end of 2008, the District had invested $96.5 million (before accumulated depreciation of $46.7 million) in a broad range of capital assets, including land and land improvements, buildings, furniture and equipment, and construction in progress. (See Figure A-7.) (More detailed information about capital assets can be found in Note 4 to the financial statements.) Total depreciation expense for the year exceeded $2.1 million, while additions amounted to $22.9 million.

Figure A-7Capital Assets (net of depreciation)(in millions of dollars)

TotalPercentage

2008 2007 ChangeLand 1.1$ 1.1$ 0.0%Construction in progress 25.8 3.4 100.0%Land improvements 0.2 0.3 (0.3)%Buildings and improvements 21.3 22.8 (5.2)%Furniture and equipment 1.4 1.4 0.0%

TOTAL 49.8$ 29.0$


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Long–Term Debt At June 30, 2008, the District had $60.7 million in general obligation bonds and other long-term debt outstanding – as shown in Figure A-8. More detailed information about the District’s long-term liabilities is presented in Note 5 to the financial statements.

• The District continued to stay well below its legal debt margin. • The decrease in debt over the prior year was due to the repayment of various general obligation bonds.

Factors Bearing on the District’s Future

At the time that these financial statements were prepared, the District had concluded its contract negotiations with the certified (teaching) staff. Additionally, the District obtained a one-year extension with the classified staff in order that the District might complete the otherwise expiring contract negotiations.

Contacting the District’s Financial Management

This financial report is designed to provide the District’s citizens, taxpayers, customers, and investors and creditors with a general overview of the District’s finances and to demonstrate the District’s accountability for the money it receives. If you have questions about this report or need additional financial information, contact Ilandus Hampton, Director Fiscal Services, Rich Township High School District 227, Olympia Fields, Illinois, (708) 679-5720.

Figure A-8Outstanding Long-Term Debt (in millions of dollars)

TotalPercentage

2008 2007 ChangeGeneral obligation bonds 60.4$ 63.6$ 90.7%

Other 0.3 0.4 (0.2)%

TOTAL 60.7$ 64.0$

Basic Financial Statements

Government-Wide Financial Statements (GWFS)

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Rich Township High School District No. 227

Statement of Net AssetsJune 30, 2008

GovernmentalActivities

Assets

Current AssetsCash and investments 48,835,824 $ Property taxes receivable 27,423,918 Due from other governmental units 1,710,079 Due from student activity account 734,757 Prepaid items 350,000

Total current assets 79,054,578

Noncurrent AssetsUnamortized bond issuance costs 1,449,214 Capital assets not being depreciated 26,839,992 Capital assets being depreciated, net 22,942,031

Total noncurrent assets 51,231,237

Total assets 130,285,815 $

Liabilities and Net Assets

Current LiabilitiesAccounts payable 1,159,549 $ Accrued liabilities 544,028 Accrued interest 228,385 Unearned revenue 26,421,348 General obligation bonds 3,035,000 Capital leases 15,023

Total current liabilities 31,403,333

Long-term liabilities, net of current maturitiesCompensated absences 225,175 Unamortized premium on bonds 1,973,953 General obligation bonds 57,375,000 Capital leases 1,579

Total long-term liabilities 59,575,707

Total liabilities 90,979,040

Net AssetsInvested in capital assets, net of related debt 36,474,053 Unrestricted 2,832,722

Total net assets 39,306,775

Total liabilities and net assets 130,285,815 $

See Notes to Financial Statements.

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Statement of ActivitiesYear Ended June 30, 2008

Net Expenseand

Changes inProgram Revenues Net Assets

OperatingCharges for Grants and Governmental

Functions/Programs Expenses Services Contributions ActivitiesGovernmental activities:

Instruction:Regular programs 22,865,506$ 838,012$ 3,792,657$ (18,234,837)$ Special programs 7,826,176 - 2,605,466 (5,220,710) Other instructional programs 5,183,291 - 585,029 (4,598,262)

Support services:Pupils 7,473,930 - - (7,473,930) Instructional staff 1,317,395 - 243,169 (1,074,226) General administration 2,579,907 - - (2,579,907) School administration 4,578,695 - - (4,578,695) Business 3,462,686 926,630 967,360 (1,568,696) Transportation 2,760,935 3,402 1,294,306 (1,463,227) Central 1,051,834 - - (1,051,834) Operations and maintenance 4,437,562 - - (4,437,562)

Payments to other governments 4,383,346 - - (4,383,346) Interest and charges 3,030,019 - - (3,030,019)

Total governmental activities 70,951,282$ 1,768,044$ 9,487,987$ (59,695,251)

General revenues:Taxes:

Property taxes, general purposes 37,692,434 Property taxes, debt service 5,733,251 Corporate personal property replacement taxes 1,585,730

State aid-formula grants 11,348,356 Payments in lieu of taxes 282,975 Interest 3,117,619 Miscellaneous 121,161

Total general revenues 59,881,526

Change in net assets 186,275 Net assets:

July 1, 2007 39,120,500

June 30, 2008 39,306,775$


Fund Financial Statements (FFS)

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Balance SheetGovernmental FundsJune 30, 2008

IMRF/Social Bond and Nonmajor TotalGeneral Security Interest Governmental Governmental

Fund Fund Fund Funds FundsAssets

Cash and investments 40,426,012 $ -$ 3,242,273 $ 5,167,539 $ 48,835,824 $ Property taxes receivable 22,684,662 358,018 3,540,039 841,199 27,423,918 Advance to other funds - - - 1,285,888 1,285,888 Due from other governmental units 1,375,528 16,125 - 318,426 1,710,079 Due from student acctivity account 734,757 - - - 734,757 Prepaid items 350,000 - - - 350,000

Total assets 65,570,959 $ 374,143 $ 6,782,312 $ 7,613,052 $ 80,340,466 $

Liabilities and Fund Balance

LiabilitiesAccounts payable 860,958 $ -$ -$ 298,591 $ 1,159,549 $ Accrued liabilities 544,028 - - - 544,028 Advance from other funds - 1,285,888 - - 1,285,888 Deferred revenue 21,937,238 344,929 3,410,622 810,446 26,503,235

Total liabilities 23,342,224 1,630,817 3,410,622 1,109,037 29,492,700

Fund balance (deficit):Reserved for tort immunity - - - 201,347 201,347 Reserved for advances - - - 1,285,888 1,285,888 Reserved for prepaid items 350,000 - - - 350,000 Unreserved, reported in:

General fund 41,878,735 - - - 41,878,735 Debt service fund - - 3,371,690 - 3,371,690 Special revenue funds - (1,256,674) - 3,085,406 1,828,732 Capital projects funds - - - 1,931,374 1,931,374

Total fund balance 42,228,735 (1,256,674) 3,371,690 6,504,015 50,847,766

Total liabilities and fund balance 65,570,959 $ 374,143 $ 6,782,312 $ 7,613,052 $ 80,340,466 $


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Reconciliation of the Governmental FundsBalance Sheet to the Statement of Net AssetsJune 30, 2008

Total fund balance - governmental funds 50,847,766 $

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

The cost of capital assets (land, land and improvements, buildings and improvements, and furniture and equipment)purchased or constructed is reported as an expenditure in governmental funds. The statement of net assets includes those capital assets among the assets of the School Board as a whole.

Cost of capital assets 96,452,713 $ Accumulated depreciation (46,670,690) 49,782,023

State grant revenues that are deferred in the fund financialstatements because they are not available but are recognized asrevenue in the government-wide financial statements 81,887

Long-term liabilities applicable to the District's governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. All liabilities - both current and long-term - are reported in the statement of net assets

General obligation bonds (60,410,000) Capital leases (16,602)

Compensated absences (225,175) Accrued interest (228,385)

Premiums on bonds that are other financing sources in the fund financial statements areliabilities that are amortized over the life of the bonds in the government-widefinancial statements (1,973,953)

Bond issuance costs that are an expenditure in the fund financial statements are an asset that is amortized over the life of the bonds in thegovernment-wide financial statements 1,449,214

Net assets of governmental activities 39,306,775 $


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Statement of Revenues, Expenditures and Changes in Fund BalancesGovernmental FundsYear Ended June 30, 2008

IMRF/Social Bond and Nonmajor TotalGeneral Security Interest Governmental Governmental

Fund Fund Fund Funds Funds

Revenues:Property taxes 35,037,374 $ 907,580 $ 5,733,251 $ 1,747,480 $ 43,425,685 $ Corporate personal property

replacement taxes 1,574,337 11,393 - - 1,585,730 Payments in lieu of taxes 243,056 - - 39,919 282,975 Charges for services 1,764,642 - - 3,402 1,768,044 Unrestricted state aid 11,348,356 - - - 11,348,356 Restricted state aid 5,807,388 - - 1,294,306 7,101,694 Restricted federal aid 2,357,138 - - - 2,357,138 Interest 2,929,619 - - 188,000 3,117,619 Miscellaneous 121,161 - - - 121,161

Total revenues 61,183,071 918,973 5,733,251 3,273,107 71,108,402

Expenditures: Current:

Instruction:Regular programs 19,448,875 186,667 - - 19,635,542 Special programs 6,306,677 208,747 - - 6,515,424 Other instructional programs 4,191,908 123,270 - - 4,315,178

Support services:Pupils 6,017,382 204,791 - - 6,222,173 Instructional staff 1,069,518 27,236 - - 1,096,754 General administration 2,095,617 52,199 - - 2,147,816 School administration 3,669,217 148,002 - - 3,817,219 Business 2,440,972 441,773 - - 2,882,745 Transportation - - - 2,760,935 2,760,935 Central 811,493 64,177 - - 875,670 Operations and maintenance 3,694,346 - - - 3,694,346

Payments to other governments 4,383,346 - - - 4,383,346 Debt Service:

Principal 118,480 - 3,190,000 - 3,308,480 Interest and charges 13,032 - 2,816,155 - 2,829,187

Capital outlay 30,380,822 - - 4,105 30,384,927 Total expenditures 84,641,685 1,456,862 6,006,155 2,765,040 94,869,742

Net change in fund balance (23,458,614) (537,889) (272,904) 508,067 (23,761,340)

Fund balance (deficit):July 1, 2007 65,687,349 (718,785) 3,644,594 5,995,948 74,609,106

June 30, 2008 42,228,735 $ (1,256,674) $ 3,371,690 $ 6,504,015 $ 50,847,766 $


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Reconciliation of the Governmental FundsStatement of Revenues, Expenditures and Changes in Fund Balances to theStatement of ActivitiesYear Ended June 30, 2008

Net change in fund balances—total governmental funds (23,761,340) $

Amounts reported for governmental activities in the statement of activities aredifferent because:

Capital outlays are reported in governmental funds as expenditures. However, inthe statement of activities, the costs of those assets is allocated over theirestimated useful lives as depreciation expense. These are the amountsin the current period.

Depreciation expense (2,145,610) $ Capital outlays 22,958,077 20,812,467

In the statement of activities, the amount by which the carrying value ofcapital assets disposed of exceeds the proceed from the sale of thoseassets is reported as a loss. (8,116)

State grant revenues that are deferred in the fund financialstatements because they are not available but are recognized asrevenue in the government-wide financial statements. 29,155

In the statement of activities, compensated absences are measured by the amounts earned during the year. In the governmental funds, however, expendituresfor these items are measured by the amount of financial resources that are used.This year, compensated absences earned were less than the amounts used. 6,461

Repayment of principal on long-term debt is an expenditure in the governmental funds,but the repayment reduces long-term liabilities in the statement of net assets.

General obligation bonds 3,190,000 Capital leases 118,480

Accrued interest payable reported in the statement of activities does not require the use ofcurrent financial resources and, therefore, is not reported as a liability in governmental funds. (228,385)

Premium on bonds is recorded as other financing sources in the fund financial statements, but the premium is recorded as a liability in the statement of net assets and is amortizedover the life of the bonds. This is the amount in the current period.

Amortization of premium on bonds 122,431

Bond issuance costs are recorded as expenditures in the fund financial statements, but the cost is recorded as an asset in the statement of net assets and is amortizedover the life of the bonds. This is the amount in the current period.

Amortization of bond issuance costs (94,878)

Change in net assets of governmental activities 186,275 $


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Statement of Fiduciary Assets and LiabilitiesAgency FundJune 30, 2008

AgencyStudentActivityFund

Assets

Cash and investments 1,366,005 $

Liabilities Due to activity fund organizations 631,248 Due to District educational fund 734,757

Total liabilities 1,366,005

Total net assets -$


Rich Township High School District No. 227 Notes to Financial Statements

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Note 1. Summary of Significant Accounting Policies Nature of Activities Rich Township High School District No. 227 operates a public school system under the direction of its Board of Education. In meeting the educational needs of the students within its boundaries, the District also operates a school lunch program and provides student transportation services. The accounting policies of the District conform to accounting principles generally accepted in the United States of America as applicable to governments. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The following is a summary of the more significant accounting policies: Financial Reporting Entity As defined by generally accepted accounting principles established by the Governmental Accounting Standards Board (GASB), the financial reporting entity consists of the primary government, as well as component units, which are legally separate organizations for which elected officials of the primary government are financially accountable. Financial accountability is defined as:

(1) Appointment of a voting majority of the component unit’s board, and either (a) the ability to impose will by the primary government, or (b) the possibility that the component unit will provide a financial benefit to, or impose a financial burden on, the primary government; or

(2) Fiscal dependency on the primary government.

Based upon the application criteria, no component units have been included within the reporting entity. Government-Wide and Fund Financial Statements Government-Wide Financial Statements: The government-wide Statement of Net Assets and Statement of Activities report the overall financial activity of the District. Eliminations have been made to minimize the double counting of internal activities of the District. The financial activities of the district consist of governmental activities, which are primarily supported by taxes and intergovernmental revenues. The Statement of Net Assets presents the District’s non-fiduciary assets and liabilities with the difference reported in three categories: Invested in capital assets, net of related debt consists of capital assets, net of accumulated depreciation and reduced by outstanding balances for bonds and other debt that are attributable to the acquisition, construction, or improvement of those assets. Restricted net assets result when constraints placed on net asset use are either externally imposed by creditors, grantors, contributors, and the like, or imposed by law through constitutional provisions or enabling legislation. The District has no restricted net assets at June 30, 2008. Unrestricted net assets consist of net assets that do not meet the criteria of the two preceding categories.


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Note 1. Summary of Significant Accounting Policies (continued) Government-Wide and Fund Financial Statements (continued)

The Statement of Activities demonstrates the degree to which the direct expenses of a given function (i.e., instruction, support services, etc.) are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function. Program revenues include (a) charges paid by the recipients of goods or services offered by the programs (including fines and fees), and (b) grants and contributions that are restricted to meeting the operational requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. Fiduciary funds are excluded from the government-wide financial statements. Fund Financial Statements: Separate financial statements are provided for governmental funds and fiduciary (agency) funds, even though the latter are excluded from the government-wide financial statements. The fund financial statements provide information about the District’s funds. The District has the following governmental funds - General, Special Revenue, Debt Service, and Capital Project. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. Additionally, the District administers an agency fund that is used to account for assets held by the District in an agency capacity. These funds are held on behalf of the students of the District.

The District administers the following major governmental funds: General Fund: This is the District’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. IMRF/Social Security Fund: This is a special revenue fund which accounts for the payment of payroll related liabilities of the District.

Bond and Interest Fund: This is a debt service fund which accounts for the servicing of the long-term debt of the District. All remaining governmental funds are aggregated and reported as nonmajor governmental funds. Measurement Focus and Basis of Accounting and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flow takes place. Nonexchange transactions, in which the District gives (or receives) value without directly receiving (or giving) equal value in exchange, include various taxes, state-shared revenues and various state, federal and local grants. On an accrual basis, revenues from taxes are recognized when the District has a legal claim to the resources. Grants, entitlements, state-shared revenues and similar items are recognized in the fiscal year in which all eligibility requirements imposed by the provider have been met.


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Note 1. Summary of Significant Accounting Policies (continued) Measurement Focus and Basis of Accounting and Financial Statement Presentation (continued) Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the District considers revenues to be available if they are collected within 60 days of the end of the current fiscal year. Significant revenue sources which are susceptible to accrual include property taxes, other taxes, grants, and interest. All other revenue sources are considered to be measurable and available only when cash is received. Expenditures generally are recorded when the liability is incurred, as under accrual accounting. However, compensated absences are recorded only when payment is due (upon employee retirement or termination). General capital asset acquisitions are reported as expenditures in governmental funds. Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in the government-wide financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board (GASB), in which case the GASB prevails. Property Taxes Property taxes are levied each year on all taxable real property in the District on or before the last Tuesday in December. The 2007 tax levy was passed by the Board of Education on December 18, 2007, and attached as an enforceable lien on the property as of the preceding January 1. These taxes become due and collectible in March and September 2008 and are collected by the county collector who in turn remits to the District its respective share. The District receives these remittances within one month of the collection dates. For all funds, the District recognizes collections within 60 days after year-end as revenue in the current fiscal year with the remaining portion of the levy to be recognized in the following fiscal year. Accordingly, the second half amount is reflected as deferred revenue in the current year. This methodology conforms to the measurable and available criteria for revenue recognition. A reduction for collection losses, based on historical collection experience, has been provided to reduce the taxes receivable to the estimated amounts to be collected. Assets, Liabilities, and Net Assets or Equity Investments The investments are recorded at fair value. Fair value is determined primarily on the basis of quoted market prices for the same or similar investments.


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Note 1. Summary of Significant Accounting Policies (continued) Assets, Liabilities, and Net Assets or Equity (continued) Interfund Receivables, Payables, and Activity Loans – amounts provided with a requirement for repayment. Interfund loans are reported as due from other funds in lender funds and due to other funds in borrower funds for short-term borrowings and advances to other funds in lender funds and advances from other funds in borrower funds for long-term borrowings. Amounts are eliminated in the government-wide statement of net assets. Transfers – flows of assets (such as cash or goods) without equivalent flows of assets in return and without a requirement for repayments. In governmental funds, transfers are reported as other financing uses in the funds making transfers and as other financing sources in the funds receiving transfers. Capital Assets Capital assets which include land, buildings, and other equipment, are reported in the applicable Statement of Net Assets. Capital assets are defined as assets with an initial individual cost of more than $500, and an estimated useful life of greater than one year. Additions or improvements that significantly extend the useful life of an asset, or that significantly increase the capacity of an asset, are capitalized. Expenditures for asset acquisitions and improvements are stated as capital outlay expenditures in the governmental funds. These assets have been valued at historical cost or estimated historical cost if purchased or constructed. Donated assets are recorded at their estimated fair market value at the date of donation. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend the assets’ lives are not capitalized. Depreciation of capital assets is recorded in the Statement of Activities with accumulated depreciation reflected in the Statement of Net Assets and is provided on the straight-line basis over the following estimated useful lives: Land improvements 10 - 30 years Furniture and equipment 3 - 5 years Building and improvements 40 years Deferred Revenue The District defers revenue recognition in connection with resources that have been received, but not yet earned. Governmental funds report deferred revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Compensated Absences Certified employees working less than 12 months a year do not earn vacation days, however, noncertified full-time employees working 12 months a year earn vacation days which accumulate as they accrue. All full-time employees receive 12 sick days and 2 personal days per year and these days may accumulate to a maximum of 200 days for certified employees and 250 days for noncertified employees. All other noncertified employees may receive up to 10 sick days and 1 personal day and may accumulate these days to a maximum of 250 days. These accumulated sick days do not vest; however, certified employees may donate one sick day each year to a sick leave bank. Accumulated sick days can be contributed toward retirement. The General Fund is typically used to liquidate this liability.


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Note 1. Summary of Significant Accounting Policies (continued) Assets, Liabilities, and Net Assets or Equity (continued) Long-Term Obligations In the government-wide financial statements, long-term debt and other long-term obligations, including compensated absences, are reported as liabilities in the Statement of Net Assets. Items such as premiums, discounts, bond issuance costs and gains or losses on bond sales are capitalized and amortized over the life of the related debt. In the fund financial statements, the face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Restricted Net Assets For the government-wide Statement of Net Assets, net assets are reported as restricted when constraints placed on net asset use are either:

Externally imposed by creditors (such as debt covenants), grantors, contributors or laws or regulations of other governments; Imposed by law through constitutional provisions or enabling legislation.

When both restricted and unrestricted resources are available for use, it is the District’s policy to use restricted resources first, then unrestricted resources as they are needed. Fund Balance Reserves In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Elimination and Reclassification In the process of aggregating data for the government-wide Statement of Activities, some amounts reported as interfund activity and interfund balances in the funds were eliminated or reclassified. Use of Estimates The preparation of financial statements in conformity with the modified cash basis of accounting requires management to make estimates and assumptions that affect the amounts of assets and liabilities and disclosures of contingent liabilities at the date of the financial statements, and the reported amount of revenue and expenditures/expenses during the period. Actual results may differ from those estimates.


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Note 2. Cash and Investments (a) Deposits State statutes authorize the District to make deposits directly in interest bearing depository accounts in federally insured and/or state chartered banks, savings and loan associations and credit unions. As of June 30, 2008 the District had deposits with federally insured financial institutions of $8,230,294 with bank balances totaling $8,309,142. Custodial credit risk - Deposits - In the case of deposits, this is the risk that in the event of bank failure, the District’s deposits may not be returned to it. As of June 30, 2008, all of the District’s bank balances were insured or collateralized. (b) Investments As of June 30, 2008, the District had the following investments: N/A = Not Available. Interest rate risk - The District’s investment policy does not limit its investment portfolio to specific maturities. Credit risk - State statutes authorize the District to invest in direct obligations of, or obligations guaranteed by, the United States Treasury or agencies of the United States and short-term obligations of corporations organized in the United States with assets exceeding $500,000,000. This District is also authorized to invest in the Illinois School District Liquid Asset Fund (ISDLAF) and the Illinois Funds, which invests member deposits, on a pooled basis, primarily in short-term certificates of deposit and in high-rated, short-term obligations of major United States corporations and banks. The District has restricted its investments to only these described above. Custodial credit risk - Investments - For an investment, this is the risk that in the event of the failure of the counterparty, the District will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. Pooled cash and investments held by the Bloom Township Trustees are not subject to custodial credit risk. The District’s investment policy does not address custodial credit risk for investments. Concentration of credit risk - The District’s investment policy required diversified investments to eliminate the risk of loss resulting in over-concentration in a specific issuer or class of securities. The diversification can be by type of investment, number of institutions invested in, and length of maturity. Information related to the interest rate risk, credit risk, custodial credit risk, concentration of credit risk of other cash and investments held by the Bloom Township Trustees can be obtained from the Bloom Township Trustee, which issues a financial report that includes financial statements and required supplementary information.

Weighted AverageInvestment

Fair MaturitiesValue (in Years)

Pooled cash and investments held by the Bloom Township Treasurer 41,971,535$ N/A


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Note 2. Cash and Investments (continued) The above deposits of $8,230,294 and investments of $41,971,535 that total $50,201,829 are presented in the basic financial statements as cash and investments as follows:

Note 3. Capital Assets Capital assets balances and activity for the year ended June 30, 2008, is as follows:

Balance, Balance,July 1, 2007 Additions Retirements June 30, 2008

Governmental activities: Capital assets, not being depreciated

Land 1,051,210 $ -$ -$ 1,051,210 $ Construction in progress 3,391,698 22,397,084 - 25,788,782 Total capital assets

not being depreciated 4,442,908 22,397,084 - 26,839,992

Capital assets, being depreciated:Land improvements 1,438,269 - - 1,438,269 Furniture and equipment 10,008,633 286,776 196,885 10,098,524 Building and improvements 57,801,711 274,217 - 58,075,928 Total capital assets

being depreciated 69,248,613 560,993 196,885 69,612,721

Less accumulated depreciation:Land improvements (1,178,822) (34,416) - (1,213,238) Furniture and equipment (8,539,158) (367,554) (188,769) (8,717,943) Buildings and improvements (34,995,869) (1,743,640) - (36,739,509)

Total accumulated depreciation (44,713,849) (2,145,610) (188,769) (46,670,690)

Total capital assets being depreciated, net 24,534,764 (1,584,617) 8,116 22,942,031

Governmental activitiesCapital assets, net 28,977,672 $ 20,812,467 $ 8,116 $ 49,782,023 $

Statement of Net Assets (GWFS) 48,835,824 $ Statement of Fiduciary Net Assets (FFS) 1,366,005

50,201,829 $


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Note 3. Capital Assets (continued) Depreciation expense was charged to governmental activities as follows:

Note 4. Long-Term Obligations The following is a summary of changes in long-term debt for the year ended June 30, 2008:

General CapitalObligation Lease Compensated

Bonds Obligations Absences Total

Long-term debtJuly 1, 2007 63,600,000 $ 135,082 $ 231,636 $ 63,966,718 $ Bonds retired (3,190,000) - - (3,190,000) Leases retired - (118,480) - (118,480) Compensated absences earned - - 220,626 220,626 Compensated absences taken - - (227,087) (227,087)

Long-term debtJune 30, 2008 60,410,000 $ 16,602 $ 225,175 $ 60,651,777 $

Amounts due within one year 3,035,000 $ 15,023 $ -$ 3,050,023 $

Instruction 1,210,538 $ Support services 935,072

2,145,610 $


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Note 4. Long-Term Obligations (continued) Interest rates on the outstanding debt range from 4.0 percent to 5.2 percent on the outstanding bonds and range from 7.3 percent to 8.71 percent on the outstanding capital lease obligations. As of June 30, 2008, the future annual debt service requirements on the outstanding debt, except for compensated absences, are as follows:

The District’s legal limitation of $92,612,381 based on 6.9 percent of the 2007 equalized assessed valuation of $1,342,208,424, less the outstanding general obligation bonds of $60,410,000 results in a debt legal margin of $32,202,381. The general fund is typically used to liquidate capital lease obligations. Note 5. Lease Commitment The District has leased 3 office buildings with monthly lease payments of $13,998. The total minimum lease commitment under these leases is $139,980 as of June 30, 2008, which is due in full during the year ended June 30, 2009. The District leases various equipment under capital leases, which expire between June 2009 and July 2009. Annual lease payments, including interest ranging from 7.38 percent to 8.71 percent, range from $1,716 to $9,085. The assets and liabilities under the leases were recorded at the present value of the future minimum lease payments. The leased assets are fully depreciated as of June 30, 2008.

Year EndingJune 30, Principal Interest Principal Interest Total

2009 3,035,000 $ 2,672,230 $ 15,023 $ 1,333 $ 5,723,586 $ 2010 3,175,000 2,531,620 1,579 137 5,708,336 2011 3,320,000 2,378,245 - - 5,698,245 2012 3,480,000 2,257,680 - - 5,737,680 2013 3,640,000 2,128,025 - - 5,768,025

2014 - 2018 19,575,000 8,269,297 - - 27,844,297 2019 - 2023 15,185,000 3,844,976 - - 19,029,976 2024 - 2028 8,375,000 697,445 - - 9,072,445 2029 - 2030 625,000 32,890 - - 657,890

60,410,000 $ 24,812,408 $ 16,602 $ 1,470 $ 85,240,480 $

General Obligation Capital LeaseBonds Obligations


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Note 5. Lease Commitment (continued) Minimum future lease payments under the capital leases together with the present value of net minimum lease payments as of June 30, 2008 are as follows: Year ending June 30:

2009 16,356 $ 2010 1,716 Total minimum lease payments 18,072

Less the amount representing interest 1,470 Present value of net minimum lease payments 16,602

Less current portion 15,023 Long-term obligations under capital leases 1,579 $

Note 6. Risk Management The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction to assets; errors and omissions; injuries to employees; and natural disasters. The District participates in the School Employees Loss Fund (SELF) for its workers compensation coverage. SELF is an organization of school districts in Illinois which has formed an association under the Illinois Intergovernmental Cooperation’s Statute to pool its risk management needs. The cooperative agreement provides that SELF will be self-sustaining through member premiums which will be used to purchase commercial insurance. The Districts appoint one delegate to represent the District on the Board of Directors of the SELF pool. The District does not exercise any control over the activities of the pool beyond its representation on the Board of Directors. The District, along with other members of SELF, has a contractual obligation to fund any premium deficiency of SELF attributable to a membership year during which it was a member. No such deficiency payments have been required to be made by the District in each of the last three years. The District also carries commercial insurance for its employee health insurance and general liability coverages. Settled claims have not exceeded commercial insurance coverage during any of the past three years. There have been no significant reductions in insurance coverage from the prior year.


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Note 7. Retirement Fund Commitments Teachers’ Retirement System The District participates in the Teachers’ Retirement System of the State of Illinois (TRS). TRS is a cost-sharing multiple-employer defined benefit pension plan that was created by the Illinois legislature for the benefit of Illinois public school teachers employed outside the City of Chicago. The Illinois Pension Code outlines the benefit provisions of TRS, and amendments to the plan can be made only by legislative action with the Governor’s approval. The State of Illinois maintains the primary responsibility for funding the plan, but contributions from participating employers and members are also required. The TRS Board of Trustees is responsible for the system’s administration. TRS members include all active nonannuitants who are employed by a TRS-covered employer to provide services for which teacher certification is required. The active member contribution rate for the year ended June 30, 2008, was 9.4 percent of creditable earnings. These contributions, which may be paid on behalf of employees by the District, are submitted to TRS by the District. The active member contribution rate was also 9.4 percent for the years ended June 30, 2007 and 2006. The State of Illinois makes contributions directly to TRS on behalf of the District’s TRS-covered employee.

♦ On behalf contributions to TRS The State of Illinois makes employer pension contributions on behalf of the district. For the year ended June 30,

2008, State of Illinois contributions were based on 13.11 percent of creditable earnings not paid from federal funds, and the District recognized revenue and expenditures of $3,402,434 in pension contributions that the State of Illinois paid directly to TRS. For the years ended June 30, 2007 and 2006, the State of Illinois contribution rates as percentages of creditable earnings not paid from federal funds were 9.78 percent ($2,449,261) and 7.06 percent ($1,664,872), respectively.

The State contributions to TRS for the year ended June 30, 2008 were based on an actuarial formula. The State contributions for the years ended June 30, 2007 and 2006, were based on dollar amounts specified by the statute and were not actuarially determined.

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

♦ 2.2 formula contributions Employers contribute 0.58 percent of total creditable earnings for the 2.2 formula change. This rate is specified

by statute. Contributions for the year ended June 30, 2008 were $150,589. Contributions for the years ended June 30, 2007 and 2006, were $145,649 and $136,989, respectively.

♦ Federal and special trust fund contributions When TRS members are paid from federal and special trust funds administered by the District, there is a

statutory requirement for the District to pay an employer pension contribution from those funds. Under a policy adopted by the TRS Board of Trustees that was first effective for the fiscal year ended June 30, 2006, employer contributions for employees paid from federal and special trust funds will be the same as the state contribution rate to TRS.


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Note 7. Retirement Fund Commitments (continued)

For the year ended June 30, 2008, the employer pension contribution was 13.11 percent of salaries paid from federal and special trust funds. For the years ended June 30, 2007 and 2006, the employer contribution was 9.78 and 7.06 percent of salaries paid from federal and special trust funds, respectively. For the year ended June 30, 2008, salaries totaling $81,561 were paid from federal and special trust funds that required employer contributions of $10,693. For the years ended June 30, 2007 and 2006, required District contributions were $68,398 and $2,617, respectively.

♦ Early Retirement Option (ERO) The District is also required to make one-time employer contributions to TRS for members retiring under the

Early Retirement Option (ERO). The payments vary depending on the age and salary of the member and under which ERO program the member retires.

Under Public Act 94-0004, a “Pipeline ERO” program was provided for members to retire under the same terms as the ERO program that expired June 30, 2005, provided they met certain conditions and retired on or before July 1, 2007. If members did not meet these conditions, they can retire under the “Modified ERO” program which requires higher member and employer contributions to TRS. Also, under Modified ERO, Public Act 94-0004 eliminates the waiver of member and employer ERO contributions that had been in effect for members with 34 years of service (unless the member qualified for the Pipeline ERO).

Under the Pipeline ERO, the maximum employer contribution was 100 percent of the member’s highest salary used in the final average salary calculation.

Under the Modified ERO, the maximum employer contribution is 117.5 percent.

Both the 100 percent and 117.5 percent maximums apply when the member is age 55 at retirement.

For the year ended June 30, 2008, the District was not required to make any payments to TRS for employer contributions under the ERO program. For the years ended June 30, 2007 and 2006, the District was not required to make employer ERO contributions.

♦ Salary increased over 6 percent and excess sick leave Public Act 94-0004 added two additional employer contributions to TRS.

• If an employer grants salary increases over 6 percent and those salaries are used to calculate a retiree’s final average salary, the employer makes a contribution to TRS. The contribution will cover the difference in actuarial cost of the benefit based on actual salary increases and the benefit based on salary increases of up to 6 percent.

For the year ended June 30, 2008, the District was not required to make any payments to TRS for employer contributions due on salary increases in excess of 6 percent. For the years ended June 30, 2007 and 2006, the District was not required to make any payments to TRS for employer contributions due on salary increases in excess of 6 percent.

• If an employer grants sick leave days in excess of the normal annual allotment and those days are used as TRS service credit, the employer makes a contribution to TRS. The contribution is based on the number of excess sick leave days used as service credit, the highest salary used to calculate final average salary, and the TRS total normal cost rate (17.62 percent of salary during the year ended June 30, 2008).


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For the year ended June 30, 2008, the District was not required to make any payments to TRS for sick leave days granted in excess of the normal annual allotment. For the years ended June 30, 2007 and 2006, the District was not required to make any employer contributions granted for sick leave days.

Further Information on TRS

TRS financial information, an explanation of TRS benefits, and descriptions of member, employer and state funding requirements can be found in the TRS Comprehensive Annual Financial Report for the year ended June 30, 2007. The report for the year ended June 30, 2008, is expected to be available in late 2008.

The reports may be obtained by writing to the Teachers’ Retirement System of the State of Illinois, P.O. Box 19253, 2815 West Washington Street, Springfield, IL 62794-9253. The most current report is also available on the TRS Web site at trs.illinois.gov.

Teachers Health Insurance Security Fund

The District participates in the Teacher Health Insurance Security (THIS) Fund, a cost-sharing, multiple-employer defined benefit postemployment healthcare plan that was established by the Illinois legislature for the benefit of Illinois public school teachers employed outside the City of Chicago. The THIS Fund provides medical, prescription, and behavioral health benefits, but does not provide vision, dental, or life insurance benefits to annuitants of the Teachers’ Retirement System (TRS). Annuitants may participate in the state administered participating provider option plan or choose from several managed care options.

The State Employees Group Insurance Act of 1971 (5 ILCS 375) outlines the benefit provisions of THIS Fund and amendments to the plan can be made only by legislative action with the Governor’s approval. The Illinois Department of Healthcare and Family Services (HFS) and the Illinois Department of Central Management Services (CMS) administer the plan with the cooperation of TRS. The director of HFS determines the rates and premiums for annuitants and dependent beneficiaries and establishes the cost-sharing parameters. Section 6.6 of the State Employees Group Insurance Act of 1971 requires all active contributors to the TRS who are not employees of the state make a contribution to THIS.

The percentage of employer required contributions in the future will be determined by the director of Healthcare and Family Services and will not exceed 105 percent of the percentage of salary actually required to be paid in the previous fiscal year.

♦ On behalf contributions to THIS Fund The State of Illinois makes employer retiree health insurance contributions on behalf of the District. State contributions are intended to match contributions to THIS Fund from active members which were 0.84 percent of pay during the year ended June 30, 2008. State of Illinois contributions were $218,094, and the District recognized revenue and expenditures of this amount during the year.

State contributions intended to match active member contributions during the years ended June 30, 2007 and 2006 were 0.80 percent of pay. State contributions on behalf of District employees were $200,349 and $188,654 during 2007 and 2006, respectively.


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♦ Employer contributions to THIS Fund The District also makes contributions to the THIS Fund. The employer THIS Fund contribution was 0.63 percent

during the year ended June 30, 2008 and 0.60 percent during the years ended June 30, 2007 and 2006. For the year ended June 30, 2008, the District paid $163,571 to the THIS Fund. For the years ended June 30, 2007 and 2006, the District paid $150,261 and $141,491, respectively, to the THIS Fund, which was 100 percent of the required contribution.

Further information on THIS Fund The publicly available financial report of the THIS Fund may be obtained by writing to the Department of Healthcare and Family Services, 201 S. Grand Ave., Springfield, IL 62763-3838.

Illinois Municipal Retirement Fund Plan Description. The District’s defined benefit pension plan for regular employees provides retirement and disability benefits, post retirement increases, and death benefits to plan members and beneficiaries. The District participates in the Illinois Municipal Retirement Fund (IMRF), an agent multiple-employer plan. Benefit provisions are established by statute and may only be changed by the General Assembly of the State of Illinois. IMRF issues a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained on-line at www.imrf.org. Funding Policy. As set by statute, the District’s regular plan members are required to contribute 4.50 percent of their annual covered salary. The statutes required employers to contribute the amount necessary, in addition to member contributions, to finance the retirement coverage of its own employees. The District’s contribution rate for fiscal year ended June 30, 2008 was 8.33 percent of annual covered payroll. The District also contributes for disability benefits, death benefits, and supplemental retirement benefits, all of which are pooled at the IMRF level. Contribution rates for disability and death benefits are set by the IMRF Board of Trustees, while the supplemental retirement benefits rate is set by statute. Annual Pension Cost. For 2008, the District’s annual pension cost of $555,686 for the Regular plan was equal to the District’s required and actual contributions. Three Year Trend Information for Regular Plan

Annual NetFiscal Year Ending Pension Cost Percentage of APC Pension

June 30, (APC) Contributed Obligation

2008 555,686 $ 100% -$ 2007 532,608 100% - 2006 527,685 100% -


34

Note 7. Retirement Fund Commitments (continued) The required contribution was determined as part of the December 31, 2005 and 2006, actuarial valuations using the entry age normal actuarial cost method. The actuarial assumptions at December 31, 2005, included (a) 7.5 percent investment rate of return (net of administrative and direct investment expenses), (b) projected salary increases of 4 percent a year, attributable to inflation, (c) additional projected salary increases ranging from 0.4 percent to 10.0 percent per year depending on age and service, attributable to seniority/merit, and (d) post retirement benefit increases of 3 percent annually. The actuarial value of the District’s regular plan assets was determined using techniques that spread the effects of short-term volatility in the market value of investments over a five-year period with a 15 percent corridor between the actuarial and market value of assets. The District’s regular plan’s overfunded actuarial accrued liability is being amortized as a level percentage of projected payroll on a closed basis. The remaining amortization period at December 31, 2007, was 25 years. Funded Status and Funding Progress. As of December 31, 2007, the most recent actuarial valuation date, the Regular plan was 102.69 percent funded. The actuarial accrued liability for benefits was $12,714,684 and the actuarial value of assets was $13,056,411, resulting in an overfunded actuarial accrued liability (UAAL) of $341,727. The covered payroll (annual payroll of active employees covered by the plan) was $6,491,070 and since the plan is overfunded, there is no ratio of the UAAL to the covered payroll. The schedule of funding progress, presented as RSI following the notes to the financial statements, presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. Note 8. Commitments As of June 30, 2008, the District is committed under construction contracts and purchase contracts of approximately $9,100,000. Note 9. Debt Defeasance In prior years, the District advance refunded certain general obligation bonds by placing a portion of the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the District’s financial statements. As of June 30, 2008, the total outstanding balance of defeased bonds totals $5,760,000.


35

Note 10. Other Financial Disclosures (FFS Level Only) Advance to/from other funds The interfund debt balances as of June 30, 2008 are as follows: The interfund debt balances reflect operating advances for the anticipation of expenses which are not expected to be repaid in the following fiscal year. The following funds overexpended their budgets, on a budgetary basis, for the year ended June 30, 2008:

Fund Deficits As of June 30, 2008, the IMRF/Social Security fund had a fund deficit of $1,256,674. The District intends to fund the deficit from future operating revenues and transfers.

Major governmental funds: Bond and Interest Fund 228,278 $ IMRF/Social Security Fund 43,705

Nonmajor governmental funds: Transportation 51,210 Site and Construction 4,105

Governmental Funds Advance To Advance From

Major government funds: IMRF/Social Security Fund -$ 1,285,888 $ Nonmajor governmental funds: Working Cash Fund 1,285,888 -

1,285,888 $ 1,285,888 $


36

Note 11. Pronouncements Issued But Not Yet Adopted The following is a description of GASB authoritative pronouncements which have been issued but not yet adopted by the District. GASB Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pension, will be effective for the District beginning with its year ended June 30, 2009. This Statement establishes standards for the measurement, recognition, and display of OPEB expense/expenditures and related liabilities (assets), note disclosures and, if applicable, required supplementary information in the financial reports of state and local governments. GASB Statement No. 49, Accounting and Financial Reporting for Pollution Remediation Obligations, will be effective for the District beginning with its year ending June 30, 2009. This statement addresses accounting and financial reporting for pollution (including contamination) remediation obligations, which are obligations to address the current or potential detrimental effects of existing pollution by participating in pollution remediation activities such as site assessment and cleanups. GASB Statement No. 51, Accounting and Financial Reporting for Intangible Assets, will be effective for the District beginning with its year ending June 30, 2010. The objective of this Statement is to establish accounting and financial reporting requirements for intangible assets to reduce these inconsistencies, thereby enhancing the comparability of the accounting and financial reporting of such assets among state and local governments. GASB Statement No. 52, Land and Other Real Estate Held as Investments by Endowments, will be effective for the District beginning with its year ending June 30, 2009. This Statement establishes consistent standards for the reporting of land and other real estate held as investments by essentially similar entities. Governments are required to report the changes in fair value as investment income and to disclose the methods and significant assumptions employed to determine fair value, and other information that they currently present for other investments reported at fair value. GASB Statement No. 53, Accounting and Financial Reporting for Derivative Instruments, will be effective for the District beginning with its year ending June 30, 2010. This Statement addresses the recognition, measurement, and disclosure of information regarding derivative instruments entered into by state and local governments. The District’s management has not yet determined the effect, if any, these Statements will have on the District’s financial statements.

37


Schedule of Funding ProgressIllinois Municipal Retirement Fund

ActuarialAccrued

Actuarial Liability UnfundedActuarial Value of (AAL) (Overfunded) Funded CoveredValuation Assets Entry Age AAL Ratio Payroll

Date (a) (b) (b-a) (a/b) (c)

12/31/07 13,056,411 $ 12,714,684 $ (341,727) $ 102.69 % 6,491,070 $ N/A12/31/06 12,385,432 12,214,675 (170,757) 101.40 6,260,669 N/A12/31/05 11,923,035 11,898,946 (24,089) 100.20 5,814,231 N/A

((b-a)/c)

UAALas a

June 30, 2008

Percentageof Covered

Payroll

Supplemental Information

38


Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary and GAAP Basis)General FundYear Ended June 30, 2008

Original and GAAP BasisFinal Budget Actual Actual

Revenues:Property taxes 33,991,000 $ 34,795,159 $ 35,037,374 $ Corporate personal property replacement taxes 1,280,000 1,522,921 1,574,337 Payments in lieu of taxes 100,000 243,056 243,056 Charges for services 1,479,300 1,764,642 1,764,642 Unrestricted state aid 11,374,000 11,348,356 11,348,356 Restricted state aid 1,944,500 2,361,770 5,807,388 Restricted federal aid 1,563,000 2,208,561 2,357,138 Interest 1,450,000 2,929,619 2,929,619 Miscellaneous - 121,161 121,161

Total revenues 53,181,800 57,295,245 61,183,071

Expenditures:Current:

Instruction:Regular programs 16,861,541 15,830,174 19,448,875 Special programs 5,863,158 6,172,482 6,306,677 Other instructional programs 4,992,231 4,242,687 4,191,908

Support services:Pupils 5,563,084 6,033,179 6,017,382 Instructional staff 1,090,625 1,077,689 1,069,518 General administration 2,087,497 2,117,832 2,095,617 School administration 3,274,333 3,672,572 3,669,217 Business 2,147,066 2,561,418 2,440,972 Central 3,508,110 662,580 811,493 Operations and maintenance 770,332 3,694,221 3,694,346

Payments to other governments 3,450,000 4,403,510 4,383,346 Debt Service:

Principal - 118,480 118,480 Interest and charges - 13,032 13,032

Capital outlay 37,701,508 31,193,987 30,380,822 Total expenditures 87,309,485 81,793,843 84,641,685

Change in fund balance (34,127,685) $ (24,498,598) (23,458,614)

Fund balance:July 1, 2007 66,009,367 65,687,349

June 30, 2008 41,510,769 $ 42,228,735 $

See Note to Required Supplementary Information.

Budgetary Basis

39


Schedule of Revenues, Expenditures and Changesin Fund Balance - Budget and Actual (Budgetary and GAAP Basis)IMRF/Social Security FundYear Ended June 30, 2008

Budgetary Basis GAAP BasisOriginal andFinal Budget Actual Actual

Revenues:Property taxes 900,000 $ 908,085 $ 907,580 $ Corporate personal property replacement taxes 70,000 70,000 11,393

Total revenues 970,000 978,085 918,973


Instruction:Regular programs 184,284 186,667 186,667 Special programs 202,671 208,747 208,747 Other instructional programs 124,046 123,270 123,270

Support services:Pupils 181,858 204,791 204,791 Instructional staff 23,357 27,236 27,236 General administration 55,335 52,199 52,199 School administration 139,755 148,002 148,002 Business 435,747 441,773 441,773 Central 66,104 64,177 64,177

Total expenditures 1,413,157 1,456,862 1,456,862

Change in fund balance (443,157) $ (478,777) (537,889)

Fund balance (deficit):July 1, 2007 (807,111) (718,785)

June 30, 2008 (1,285,888) $ (1,256,674) $

See Note to Required Supplementary Information.

40

Rich Township High School District No. 227 Note to Required Supplementary Information Note 1. Budgetary Basis of Accounting Annual budgets are adopted for all funds except for the student activity fund, an agency fund. These budgets are adopted on the modified cash basis of accounting at the fund level. All annual appropriations lapse at fiscal year-end. On or before July 1 of each year, the Superintendent is to submit for review by the Board of Education a proposed budget for the school year commencing on that date. After reviewing the proposed budget, the Board of Education holds public hearings and a final budget must be prepared and adopted no later than September 30. The appropriated budget is prepared by fund and by function. The Board of Education may make transfers between functions within a fund not exceeding in the aggregate 10 percent of the total of such fund, and may amend the total budget following the same procedures required to adopt the original budget. The legal level of budgetary control is at the fund level. No supplementary budgetary appropriations were required during the year. For budgetary purposes, the District does not recognize as revenue the retirement contributions made by the State of Illinois to the Teachers’ Retirement System of the State of Illinois (TRS) on behalf of the District, as well as the expenditures related to the contributions paid. The following schedule reconciles the revenues and expenditures on the non-GAAP budgetary basis with the amounts presented in accordance with the accounting principals generally accepted in the United States of America.

IMRF/Social Bond and NonmajorGeneral Security Interest Governmental

Fund Funds Fund Funds

Revenues (Non-GAAP) budgetary basis 57,295,245 $ 978,085 $ 5,708,184 $ 2,951,155 $ Unbudgeted retirement contributions paid by the State 3,620,528 - - - Prior year accruals (1,885,654) (717,073) (104,350) (1,172,937) Current year accruals 2,152,952 657,961 129,417 1,494,889

Revenues (GAAP basis) 61,183,071 $ 918,973 $ 5,733,251 $ 3,273,107 $

Expenditures (Non-GAAP) budgetary basis 81,793,843 $ 1,456,862 $ 6,006,155 $ 2,485,518 $ Unbudgeted retirement contributions paid by the State 3,620,528 - - - Prior year accruals (2,177,672) - (1,248,486) Current year accruals 1,404,986 - - 1,528,008

Expenditures (GAAP basis) 84,641,685 $ 1,456,862 $ 6,006,155 $ 2,765,040 $

41

Rich Township High School District No. 227 Note to Required Supplementary Information Note 1. Budgetary Basis of Accounting (continued)

The following funds overexpended their budgets, on a budgetary basis, for the year ended June 30, 2008:

Major governmental funds: Bond and Interest Fund 228,278 $ IMRF/Social Security Fund 43,705

Nonmajor governmental funds: Transportation 51,210 Site and Construction 4,105

42


Combining Balance SheetGeneral Fund, By AccountsJune 30, 2008

Operationsand

Educational MaintenanceAccount Account Total

Assets

Cash and investments 13,991,163 $ 26,434,849 $ 40,426,012 $ Property taxes receivable 19,388,414 3,296,248 22,684,662 Due from other governments 1,260,335 115,193 1,375,528 Due from student activity account 734,757 - 734,757 Prepaid items 350,000 - 350,000

Total assets 35,724,669 $ 29,846,290 $ 65,570,959 $


LiabilitiesAccounts payable 301,618 $ 559,340 $ 860,958 $ Accrued liabilities 429,888 114,140 544,028 Deferred revenue 18,761,495 3,175,743 21,937,238

Total liabilities 19,493,001 3,849,223 23,342,224

Fund BalanceReserved for prepaid items 350,000 - 350,000 Unreserved 15,881,668 25,997,067 41,878,735 Total fund balance 16,231,668 25,997,067 42,228,735

Total liabilities and fund balance 35,724,669 $ 29,846,290 $ 65,570,959 $

43


Combining Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Budgetary and GAAP Basis)General Fund, By AccountsYear Ended June 30, 2008

Original and Budgetary Basis GAAP BasisFinal Budget Actual Actual

Revenues:Property taxes 28,791,000 $ 29,513,063 $ 29,726,589 $ Corporate personal property

replacement taxes 1,100,000 1,342,921 1,574,337 Payments in lieu of taxes 100,000 243,056 243,056 Charges for services 1,479,300 1,764,642 1,764,642 Unrestricted state aid 11,374,000 11,348,356 11,348,356 Restricted state aid 1,944,500 2,361,770 5,807,388 Restricted federal aid 1,563,000 2,208,561 2,357,138 Interest 1,050,000 2,330,247 2,330,247 Miscellaneous - 800 800

Total revenues 47,401,800 51,113,416 55,152,553


Instruction:Regular programs 16,861,541 15,830,174 19,448,875 Special programs 5,863,158 6,172,482 6,306,677 Other instructional programs 4,992,231 4,242,687 4,191,908

Support services:Pupils 5,563,084 6,033,179 6,017,382 Instructional staff 1,090,625 1,077,689 1,069,518 General administration 2,087,497 2,117,832 2,095,617 School administration 3,274,333 3,672,572 3,669,217 Business 2,147,066 2,561,418 2,440,972 Central 770,332 662,580 811,493 Operations and maintenance - - -

Payments to other governments 3,450,000 4,403,510 4,383,346 Debt Service:

Principal - 118,480 118,480 Interest and charges - 13,032 13,032

Capital outlay 1,276,808 636,578 639,064 Total expenditures 47,376,675 47,542,213 51,205,581

Change in fund balance 25,125 $ 3,571,203 3,946,972


June 30, 2008 15,075,920 $ 16,231,668 $

Educational Account

44

Original and Budgetary Basis GAAP Basis Original and Budgetary Basis GAAP BasisFinal Budget Actual Actual Final Budget Actual Actual

5,200,000 $ 5,282,096 $ 5,310,785 $ 33,991,000 $ 34,795,159 $ 35,037,374 $

180,000 180,000 - 1,280,000 1,522,921 1,574,337 - - - 100,000 243,056 243,056 - - - 1,479,300 1,764,642 1,764,642 - - - 11,374,000 11,348,356 11,348,356 - - - 1,944,500 2,361,770 5,807,388 - - - 1,563,000 2,208,561 2,357,138

400,000 599,372 599,372 1,450,000 2,929,619 2,929,619 - 120,361 120,361 - 121,161 121,161

5,780,000 6,181,829 6,030,518 53,181,800 57,295,245 61,183,071

- - - 16,861,541 15,830,174 19,448,875 - - - 5,863,158 6,172,482 6,306,677 - - - 4,992,231 4,242,687 4,191,908

- - - 5,563,084 6,033,179 6,017,382 - - - 1,090,625 1,077,689 1,069,518 - - - 2,087,497 2,117,832 2,095,617 - - - 3,274,333 3,672,572 3,669,217 - - - 2,147,066 2,561,418 2,440,972 - - - 770,332 662,580 811,493

3,508,110 3,694,221 3,694,346 3,508,110 3,694,221 3,694,346 - - - 3,450,000 4,403,510 4,383,346

- - - - 118,480 118,480 - - - - 13,032 13,032

36,424,700 30,557,409 29,741,758 37,701,508 31,193,987 30,380,822 39,932,810 34,251,630 33,436,104 87,309,485 81,793,843 84,641,685

(34,152,810) $ (28,069,801) (27,405,586) (34,127,685) $ (24,498,598) (23,458,614)

54,504,650 53,402,653 66,009,367 65,687,349

26,434,849 $ 25,997,067 $ 41,510,769 $ 42,228,735 $

Maintenance AccountOperations and

Total

45


Combining Balance Sheet - By Fund TypeNonmajor Governmental FundsJune 30, 2008

TotalSite and Fire Preven- Nonmajor

Transportation Working Cash Construction tion and Life GovernmentalFund Fund Fund Safety Fund Funds

Assets

Cash and investments 2,355,484 $ 880,681 $ 195,657 $ 1,735,717 $ 5,167,539 $ Property taxes receivable 472,199 369,000 - - 841,199 Advance to other funds - 1,285,888 - - 1,285,888 Due from other governmets 318,426 - - - 318,426

Total assets 3,146,109 $ 2,535,569 $ 195,657 $ 1,735,717 $ 7,613,052 $


LiabilitiesAccounts payable 298,591 $ -$ -$ -$ 298,591 $ Deferred revenue 454,936 355,510 - - 810,446

Total liabilities 753,527 355,510 - - 1,109,037

Fund Balance: Reserved for tort immunity 201,347 - - - 201,347 Reserved for advances - 1,285,888 - - 1,285,888 Unreserved 2,191,235 894,171 195,657 1,735,717 5,016,780

Total fund balance 2,392,582 2,180,059 195,657 1,735,717 6,504,015

Total liabilities and fund balance 3,146,109 $ 2,535,569 $ 195,657 $ 1,735,717 $ 7,613,052 $

Special Revenue FundsCapital Projects

Funds

46


Combining Statement of Revenues, Expenditures and Changes in Fund Balance -By Fund TypeNonmajor Governmental FundsYear Ended June 30, 2008

TotalSite and Fire Preven- Nonmajor

Transportation Working Cash Construction tion and Life GovernmentalFund Fund Fund Safety Fund Funds

Revenues:Property taxes 1,018,156 $ 575,410 $ -$ 153,914 $ 1,747,480 $ Payments in lieu of taxes - - 39,919 - 39,919 Charges for services 3,402 - - - 3,402 Restricted state aid 1,294,306 - - - 1,294,306 Interest 188,000 - - - 188,000

Total revenues 2,503,864 575,410 39,919 153,914 3,273,107

Expenditures:Current,

support services,transportation 2,760,935 - - - 2,760,935

Capital outlay - - 4,105 - 4,105 Total expenditures 2,760,935 - 4,105 - 2,765,040

Change in fund balance (257,071) 575,410 35,814 153,914 508,067

Fund balance:July 1, 2007 2,649,653 1,604,649 159,843 1,581,803 5,995,948

June 30, 2008 2,392,582 $ 2,180,059 $ 195,657 $ 1,735,717 $ 6,504,015 $

Special Revenue FundsCapital Projects

Funds

47


Schedule of Revenues, Expenditures and Changesin Fund Balance - Budget and Actual (Budgetary and GAAP Basis)Transportation Fund Year Ended June 30, 2008

Budgetary Basis GAAP BasisOriginal andFinal Budget Actual Actual

Revenues:Property taxes 1,055,000 $ 1,019,035 $ 1,018,156 $ Charges for services 7,000 3,402 3,402 Restricted state aid 1,720,000 975,880 1,294,306 Interest 60,000 188,000 188,000

Total revenues 2,842,000 2,186,317 2,503,864

Expenditures, current,

support services,transportation 2,430,203 2,481,413 2,760,935

Change in fund balance 411,797 $ (295,096) (257,071)


June 30, 2008 2,355,484 $ 2,392,582 $

48


Schedule of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual (Budgetary and GAAP Basis)Working Cash FundYear Ended June 30, 2008

GAAP BasisOriginal andFinal Budget Actual Actual

Revenues:Property taxes 500,000 $ 570,798 $ 575,410 $ Interest 50,000 - -

Total revenues 550,000 570,798 575,410

Expenditures - - -

Change in fund balance 550,000 $ 570,798 575,410


June 30, 2008 2,166,569 $ 2,180,059 $

Budgetary Basis

49


Schedule of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual (Budgetary and GAAP Basis)Site and Construction FundYear Ended June 30, 2008


Revenues:Payments in lieu of taxes 100,000 $ 39,919 $ 39,919 $ Interest 60,000 - -

Total revenues 160,000 39,919 39,919

Expenditures,capital outlay - 4,105 4,105


Fund balance:July 1, 2007 159,843 159,843

June 30, 2008 195,657 $ 195,657 $

Budgetary Basis

50


Schedule of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual (Budgetary and GAAP Basis)Fire Prevention and Life Safety FundYear Ended June 30, 2008


Revenues:Property taxes 10,000 $ 154,121 $ 153,914 $ Interest 20,000 - -

Total revenues 30,000 154,121 153,914

Expenditures - - -



June 30, 2008 1,735,717 $ 1,735,717 $

Budgetary Basis

51


Schedule of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual (Budgetary and GAAP Basis)Bond and Interest FundYear Ended June 30, 2008


Revenues:Property taxes 5,700,000 $ 5,708,184 $ 5,733,251 $ Interest 80,000 - -

Total revenues 5,780,000 5,708,184 5,733,251

Expenditures,debt service: Principal 3,805,177 3,190,000 3,190,000 Interest and charges 1,972,700 2,816,155 2,816,155

Total expenditures 5,777,877 6,006,155 6,006,155

Change in fund balance 2,123 $ (297,971) (272,904)


June 30, 2008 3,242,273 $ 3,371,690 $

Budgetary Basis

52


Schedule of Debt Service RequirementsYear Ended June 30, 2008

Year TotalEnding Interest Total Total Principal

June 30, Rate Principal Interest and Interest

Total general obligation bonds 2009 3,035,000 $ 2,672,230 $ 5,707,230 $ 2010 3,175,000 2,531,620 5,706,620 2011 3,320,000 2,378,245 5,698,245 2012 3,480,000 2,257,680 5,737,680 2013 3,640,000 2,128,025 5,768,025 2014 3,790,000 1,972,786 5,762,786 2015 3,955,000 1,811,015 5,766,015 2016 3,790,000 1,650,878 5,440,878 2017 3,940,000 1,497,229 5,437,229 2018 4,100,000 1,337,389 5,437,389 2019 4,265,000 1,171,029 5,436,029 2020 4,480,000 957,149 5,437,149 2021 4,705,000 732,499 5,437,499 2022 1,510,000 524,579 2,034,579 2023 225,000 459,720 684,720 2024 3,680,000 361,635 4,041,635 2025 3,870,000 172,400 4,042,400 2026 260,000 68,640 328,640 2027 275,000 54,730 329,730 2028 290,000 40,040 330,040 2029 305,000 24,570 329,570 2030 320,000 8,320 328,320

60,410,000 $ 24,812,408 $ 85,222,408 $

Issue of September 1, 2005Original Amount: $7,065,000 2009 -$ 353,250 $ 353,250 Purpose: General Obligation Refunding Bonds 2010 - 353,250 353,250 Interest payable June 1 and 2011 - 353,250 353,250

December 1 of each year 2012 - 353,250 353,250 2013 - 353,250 353,250 2014 - 353,250 353,250 2015 - 353,250 353,250 2016 - 353,250 353,250 2017 - 353,250 353,250 2018 - 353,250 353,250 2019 - 353,250 353,250 2020 - 353,250 353,250 2021 - 353,250 353,250 2022 - 353,250 353,250 2023 - 353,250 353,250 2024 5.00 3,445,000 267,125 3,712,125 2025 5.00 3,620,000 90,500 3,710,500

7,065,000 $ 5,656,375 $ 12,721,375 $

(continued)

53


Schedule of Debt Service Requirements (continued)Year Ended June 30, 2008

Year TotalEnding Interest Total Total Principal

June 30, Rate Principal Interest and Interest

Issue of August 1, 1999 2009 5.20 345,000 $ 318,630 $ 663,630 $ Original Amount: $8,530,000 2010 5.20 365,000 300,170 665,170 Purpose: General Obligation School Bonds 2011 5.20 385,000 280,670 665,670 Interest payable June 1 and 2012 5.20 405,000 260,130 665,130

December 1 of each year 2013 5.20 425,000 238,550 663,550 2014 5.20 445,000 215,930 660,930 2015 5.20 470,000 192,140 662,140 2016 5.20 160,000 175,760 335,760 2017 5.20 165,000 167,310 332,310 2018 5.20 175,000 158,470 333,470 2019 5.20 185,000 149,110 334,110 2020 5.20 195,000 139,230 334,230 2021 5.20 205,000 128,830 333,830 2022 5.20 215,000 117,910 332,910 2023 5.20 225,000 106,470 331,470 2024 5.20 235,000 94,510 329,510 2025 5.20 250,000 81,900 331,900 2026 5.20 260,000 68,640 328,640 2027 5.20 275,000 54,730 329,730 2028 5.20 290,000 40,040 330,040 2029 5.20 305,000 24,570 329,570 2030 5.20 320,000 8,320 328,320

6,300,000 $ 3,322,020 $ 9,622,020 $

Issue of September 1, 2005Original Amount $21,510,000 2009 4.42 2,690,000 $ 384,925 $ 3,074,925 $ Purpose: Taxable General Obligation School Bonds 2010 4.46 2,810,000 262,775 3,072,775 Interest Payable June 1 and 2011 4.85 2,935,000 128,900 3,063,900

December 1 of each year 2012 5.00 1,155,000 28,875 1,183,875 9,590,000 $ 805,475 $ 10,395,475 $

Issue of February 8, 2007Original Amount: $37,455,000 2009 -$ 1,615,425 $ 1,615,425 $ Purpose: General Obligation Refunding Bonds 2010 - 1,615,425 1,615,425 Interest payable June 1 and December 1 of each year 2011 - 1,615,425 1,615,425

2012 4.125 1,920,000 1,615,425 3,535,425 2013 4.125 3,215,000 1,536,225 4,751,225 2014 4.125 3,345,000 1,403,606 4,748,606 2015 4.000 3,485,000 1,265,625 4,750,625 2016 4.000 3,630,000 1,121,868 4,751,868 2017 4.000 3,775,000 976,669 4,751,669 2018 5.000 3,925,000 825,669 4,750,669 2019 5.000 4,080,000 668,669 4,748,669 2020 4.250 4,285,000 464,669 4,749,669 2021 4.500 4,500,000 250,419 4,750,419 2022 4.125 1,295,000 53,419 1,348,419

37,455,000 $ 15,028,538 $ 52,483,538 $

54

Statistical Section

Financial Trends Information Net Assets by Component Schedule of Changes in Net Assets Schedule of Fund Balance, Governmental Funds Schedule of Changes in Fund Balance, Governmental Funds Revenue Capacity Information Assessed Value and Estimated Actual Value of Taxable Property Property Tax Rates – Direct and Overlapping Governments Representative Ten Largest Taxpayers Schedule of Property Tax Rates, Extensions and Collections Debt Capacity Information Outstanding Debt by Type Computation of Direct and Overlapping Bonded Debt Legal Debt Margin Information Demographic and Economic Information Demographic and Economic Statistics Principal Employers Operating Information Full-Time Equivalent District Employees by Type Operating Statistics

55


Net Assets by ComponentLast Six Fiscal Years

2008 2007 2006 2005 2004 2003

Governmental activitiesInvested in capital assets, net of related debt 36,474,053 $ 15,147,591 $ 5,626,188 $ 3,996,739 $ 2,779,594 $ 1,269,267 $ Unrestricted 2,832,722 24,388,025 35,952,661 25,338,175 23,971,566 22,842,601

Total primary government net assets 39,306,775 $ 39,535,616 $ 41,578,849 $ 29,334,914 $ 26,751,160 $ 24,111,868 $

Note: The District implemented GASB Statement 34 as of June 30, 2003. Information is not available prior to that date.

Data Source : District's Comprehensive Annual Financial Report.

56


Schedule of Changes in Net AssetsLast Six Fiscal Years

2008 2007 2006 2005 2004 2003ExpensesGovernmental activities:

Instruction:Regular programs 22,865,506 $ 20,268,708 $ 17,197,449 $ 16,846,915 $ 16,963,239 $ 17,375,983 $ Special programs 7,826,176 6,421,027 5,379,528 4,594,300 3,611,023 3,712,392 Other instructional programs 5,183,291 5,592,465 5,455,178 5,741,425 5,533,338 5,946,662

Total instructional 35,874,973 32,282,200 28,032,155 27,182,640 26,107,600 27,035,037

Supporting services:Pupils 7,473,930 6,052,515 4,999,396 4,621,022 4,836,690 4,700,158 Instructional staff 1,317,395 1,049,076 1,182,338 1,190,830 1,187,584 998,910 General administration 2,579,907 2,083,831 2,793,029 2,346,340 2,317,186 1,903,432 School administration 4,578,695 3,813,255 3,559,757 3,534,127 2,800,181 2,636,148 Business 3,462,686 2,994,818 2,741,607 2,457,083 2,245,580 2,189,159 Transportation 2,760,935 2,210,743 2,490,056 2,394,323 2,022,595 2,144,347 Operations and maintenance 4,437,562 3,886,517 5,120,652 4,425,439 4,567,537 4,633,174 Central 1,051,834 1,102,660 743,050 683,898 45,952 42,394

Total supporting services 27,662,944 23,193,415 23,629,885 21,653,062 20,023,305 19,247,722

Payments to other governments 4,383,346 3,253,322 4,489,872 2,864,175 2,093,020 1,919,470

Debt service 3,030,019 1,965,436 1,494,920 1,027,473 1,230,224 1,306,250

Total governmental activities expenses 70,951,282 60,694,373 57,646,832 52,727,350 49,454,149 49,508,479

Program RevenuesGovernmental activities:

Charges for services:Regular programs 838,012 137,846 484,069 463,339 446,247 447,053 Business 926,630 1,002,285 1,437,862 1,022,233 1,079,936 1,072,196 Transportation 3,402 13,557 1,419 8,164 4,793 8,097

Total charges for services 1,768,044 1,153,688 1,923,350 1,493,736 1,530,976 1,527,346

Operating grants and contributions 9,487,987 7,537,540 6,922,143 7,786,642 6,990,868 5,700,963

Total governmental activities program revenues 11,256,031 8,691,228 8,845,493 9,280,378 8,521,844 7,228,309

Net (Expense)/Revenue (59,695,251) $ (52,003,145) $ (48,801,339) $ (43,446,972) $ (40,932,305) $ (42,280,170) $

(continued)

57


Schedule of Changes in Net Assets (continued)Last Six Fiscal Years

2008 2007 2006 2005 2004 2003General Revenues and Other Changes in Net AssetsGovernmental activities:Local sources:

Property taxes 43,425,685 $ 34,348,743 $ 48,473,301 $ 36,059,993 $ 35,306,289 $ 32,984,403 $ Corporate personal property

replacement taxes 1,585,730 1,508,617 1,272,775 1,148,866 926,054 765,339 Other 404,136 359,077 514,849 568,656 143,563 304,011

Total local sources 45,415,551 36,216,437 50,260,925 37,777,515 36,375,906 34,053,753

State sources:State aid formula grants 11,348,356 10,274,504 8,567,508 7,604,294 6,925,337 5,485,198 Grants not restricted for

specific program - 239,125 609,088 108,040 45,626 72,507 Total state sources 11,348,356 10,513,629 9,176,596 7,712,334 6,970,963 5,557,705

Interest 3,117,619 2,814,730 1,607,753 540,877 224,728 619,997

Total governmental activities general revenues 59,881,526 49,544,796 61,045,274 46,030,726 43,571,597 40,231,455

Change in Net Assets 186,275 $ (2,458,349) $ 12,243,935 $ 2,583,754 $ 2,639,292 $ (2,048,715) $

Source of information: District's Comprehensive Annual Financial Report.

Note: Information presented for years after the effective date of GASB 34, June 30, 2003. Information is not available prior to that date.

58


Schedule of Fund Balance, Governmental FundsLast Ten Fiscal Years

2008 2007 2006 2005 2004 2003 2002 2001 2000 1999General Fund Reserved 350,000$ -$ -$ -$ 111,832$ 871,496$ 2,925,097$ 3,928,107$ 4,411,632$ 4,454,938$ Unreserved 41,878,735 65,687,349 48,257,924 10,635,358 10,912,648 12,290,710 6,321,498 9,620,486 6,590,391 5,114,615 Total General Fund 42,228,735$ 65,687,349$ 48,257,924$ 10,635,358$ 11,024,480$ 13,162,206$ 9,246,595$ 13,548,593$ 11,002,023$ 9,569,553$

All Other Governmental Funds Reserved 1,487,235$ 201,432$ 191,073$ 191,073$ 194,485$ 195,774$ 189,746$ 136,602$ 135,037$ 130,505$ Unreserved, reported in:

Special revenue funds 1,828,732 3,334,085 2,762,751 10,356,755 10,484,671 10,194,798 2,925,990 3,008,270 2,704,155 2,634,571 Debt service fund 3,371,690 3,644,594 4,555,529 3,489,980 3,738,732 3,467,090 2,326,511 1,793,105 1,587,162 2,030,248 Capital project funds 1,931,374 1,741,646 1,949,240 2,509,875 2,321,342 988,643 6,360,759 6,726,068 6,262,602 384,591

Total All Other Governmental Funds 8,619,031$ 8,921,757$ 9,458,593$ 16,547,683$ 16,739,230$ 14,846,305$ 11,803,006$ 11,664,045$ 10,688,956$ 5,179,915$


59


Schedule of Changes in Fund Balance, Governmental FundsLast Ten Fiscal Years

2008 2007 2006 2005 2004 2003 2002 2001 2000 1999Revenues

Property and replacement taxes 45,011,415 $ 35,857,360 $ 49,746,076 $ 37,208,859 $ 36,232,343 $ 33,749,742 $ 28,299,218 $ 30,237,817 $ 28,188,206 $ 26,381,561 $ Charges for services 1,768,044 1,353,103 1,923,350 1,548,415 1,665,299 1,633,357 1,590,799 1,531,045 1,544,895 1,455,564 State aid 18,450,050 16,523,283 14,237,277 13,545,604 12,920,950 11,285,512 11,058,525 10,836,070 10,682,297 9,903,326 Federal aid 2,357,138 1,912,552 1,836,817 1,753,946 1,460,118 1,134,066 1,488,209 1,337,453 1,516,102 924,100 Interest 3,117,619 2,814,730 1,607,753 542,400 224,728 619,997 944,342 2,208,526 945,223 1,178,197 Other 404,136 355,383 514,849 506,379 9,240 198,000 53,559 18,706 - -

Total revenues 71,108,402 58,816,411 69,866,122 55,105,603 52,512,678 48,620,674 43,434,652 46,169,617 42,876,723 39,842,748

ExpendituresInstruction 60,851,071 30,168,915 28,475,456 25,849,007 24,745,179 26,651,673 24,860,455 20,804,901 22,046,505 19,226,052 Support services 23,497,658 34,482,478 23,374,906 21,234,113 19,889,284 24,785,213 17,756,206 16,648,938 15,314,379 15,450,202 Payments to other governments 4,383,346 3,148,789 2,961,917 2,864,175 2,093,020 1,691,511 1,735,682 1,685,599 1,449,878 1,668,073 Debt service:

Principal 3,308,480 3,916,954 5,001,033 4,747,276 4,799,772 2,894,959 1,374,108 1,135,240 867,874 3,855,000 Interest and charges 2,829,187 2,000,185 1,459,118 1,027,004 1,230,224 913,446 1,332,837 1,447,061 1,418,381 1,268,704 Bond issuance costs - 682,369 474,979 - - - - - - -

Total expenditures 94,869,742 74,399,690 61,747,409 55,721,575 52,757,479 56,936,802 47,059,288 41,721,739 41,097,017 41,468,031 Excess of revenues over (under) expenditures (23,761,340) (15,583,279) 8,118,713 (615,972) (244,801) (8,316,128) (3,624,636) 4,447,878 1,779,706 (1,625,283)

Other financing sources (uses)Bonds issued - 69,455,000 28,575,000 1,080,000 - 5,775,000 3,066,290 495,550 8,439,358 - Teacher's orders proceeds - - - - - 2,653,131 - - - - Debt certificate proceeds - - - - - 3,000,000 - - - - Premium on bonds - 861,750 1,299,615 - - - - - - - Lease proceeds - 21,449 129,792 - - 361,380 - - - - Payments to escrow agent - (37,862,331) (7,589,644) (1,044,697) (5,698,366) (3,040,000) - - - Transfers in - - 28,718,203 28,654 2,333,155 3,592,657 670,230 667,580 1,465,149 - Transfers out - - (28,718,203) (28,654) (2,333,155) (3,592,657) (670,230) (667,580) (1,465,149) -

Total other financing sources (uses) - 32,475,868 22,414,763 35,303 - 6,091,145 26,290 495,550 8,439,358 -

Net change in fund balance (23,761,340) $ 16,892,589 $ 30,533,476 $ (580,669) $ (244,801) $ (2,224,983) $ (3,598,346) $ 4,943,428 $ 10,219,064 $ (1,625,283) $


60


Assessed Value and Estimated Actual Value of Taxable PropertyLast Ten Fiscal Years

Total Taxable Total Tax Equalized DirectLevy Residential Railroad Assessed TaxYear Property Property Valuation Rate

2007 1,341,600,797 $ 607,627 $ 1,342,208,424 $ 3.575

2006 1,256,343,437 562,434 1,256,905,871 3.660

2005 1,196,082,090 565,540 1,196,647,630 3.625

2004 1,016,198,829 650,422 1,016,849,251 3.975

2003 960,071,484 744,608 960,816,092 3.998

2002 941,556,497 685,313 942,241,810 3.886

2001 791,429,559 682,559 792,112,118 4.180

2000 772,709,065 669,605 773,378,670 3.931

1999 765,468,447 695,371 766,163,818 3.773

1998 689,014,551 658,146 689,672,697 4.071

Source: Cook County Clerk's Office, Department of Tax Extensions.

Note: Property in Cook County, Illinois is reassessed once every 3 years on average. The county assesses property at approximately 33.3 percent or actual value. Estimated actual taxable value is calculated by dividing taxable value by percentage.

61


Property Tax Rates - Direct and Overlapping Governments *Last Ten Years

Levy Year 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998County: County of Cook 0.4460 0.5000 0.5330 0.5930 0.6300 0.0690 0.7460 0.8240 0.8540 0.9110 Consolidated Elections 0.0120 0.0000 0.0140 - 0.0290 - 0.0320 - 0.0230 - Forest Preserve District 0.0530 0.0557 0.0600 0.0600 0.0590 0.0610 0.0670 0.0690 0.0700 0.0720 Metropolitan Water Reclamation District 0.2630 0.2840 0.3150 0.3470 0.3610 0.3710 0.4010 0.4150 0.4190 0.4440 Suburban Tuberculosis Sanitarium 0.0000 0.0050 0.0050 0.0010 0.0040 0.0060 0.0070 0.0080 0.0080 0.0080Township: Road and Bridge - Bloom 0.0420 0.0430 0.0410 0.0450 0.0450 0.0440 0.0510 0.0510 0.0490 0.0510 Road and Bridge - Rich 0.0560 0.0570 0.0580 0.0630 0.0630 0.0600 0.0680 0.0650 0.0620 0.0650 General Assistance - Bloom 0.0520 0.0530 0.0510 0.0550 0.0560 0.0530 0.0620 0.0630 0.0620 0.0680 General Assistance - Rich 0.0220 0.0220 0.0220 0.0240 0.0240 0.0230 0.0260 0.0250 0.0240 0.0240 Township of Bloom 0.1360 0.1390 0.1350 0.1480 0.1510 0.1450 0.1690 0.1700 0.1680 0.1840 Township of Rich 0.1960 0.1990 0.1930 0.2110 0.2110 0.2020 0.2300 0.2230 0.2130 0.2270 School Districts: Elementary School District No. 159 4.0410 4.0880 4.0140 4.4180 4.6410 4.5610 4.8520 4.8430 4.6500 4.8830 Elementary School District No. 160 3.0120 3.0730 3.1440 3.5090 3.5340 3.4840 4.3460 4.2970 4.1180 4.5430 Elementary School District No. 161 3.8060 3.9450 3.8820 4.2380 4.2620 4.0810 4.7750 4.7750 4.5390 4.7680 Elementary School District No. 162 3.7580 3.6530 3.5190 3.9830 3.8670 3.7120 4.1890 4.0460 3.9160 4.1670 Elementary School District No. 163 6.9750 7.4030 7.2980 8.4520 7.3780 7.0680 8.3180 8.4610 7.9390 8.8610 Elementary School District No. 194 3.0040 3.0000 2.8510 3.2890 3.2680 3.2360 3.5530 3.4640 3.3500 3.5630 Rich Township High School District No. 227 3.5750 3.8422 3.6252 3.9747 3.9980 3.8863 4.1797 3.9309 3.7729 4.0713 Prairie State Community College District No. 515 0.2940 0.2920 0.2920 0.3410 0.3460 0.3380 0.3790 0.3760 0.3680 0.3970 Villages and Cities: Village of Chicago Heights & Library Fund 3.3610 3.3330 3.2520 3.6830 3.3740 3.4600 3.9610 3.9230 3.9290 4.2530 City of Country Club Hills 5.3940 3.7400 3.4540 3.4740 3.7810 3.0670 3.8260 3.9010 1.8880 2.0750 Village of Matteson & Library Fund 1.3410 1.3930 1.7190 1.5960 1.7480 1.5090 1.6720 1.4750 1.4040 1.5100 Village of Olympia Fields & Library Fund 1.1460 0.5360 0.4160 0.5130 0.5270 0.5090 0.5530 0.4990 1.3860 0.4000 Village of Park Forest & Library Fund 5.6700 5.7370 5.6850 6.0910 5.0370 4.5540 5.1220 5.0180 4.6040 4.9350 Village of Richton Park 1.2720 1.2430 1.2140 1.4780 1.3460 1.2570 1.4880 1.4850 1.4430 1.6300 Village of Tinley Park & Library Fund 1.2270 1.2020 1.1490 1.1830 1.1660 1.0530 1.1760 1.1810 1.1280 1.1250 Village of University Park 4.5730 5.4960 5.2820 5.4570 4.7260 5.2630 4.5680 4.3910 4.6720 4.7750

(continued)

62


Property Tax Rates - Direct and Overlapping Governments * (continued)Last Ten Years

Levy Year 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998Park Districts: Chicago Heights 0.5900 0.5440 0.5400 0.6100 0.6180 0.5930 0.6850 0.7070 0.6860 0.7400 Country Club Hills 0.4770 0.5070 0.5540 0.6570 0.6690 0.6250 0.7790 0.8090 0.7970 0.8990 Frankfort Square 0.4210 0.4790 0.4760 0.4860 0.5000 0.5180 0.4440 0.4450 0.4650 0.4730 Olympia Fields 0.4520 0.4650 0.4560 0.5190 0.5280 0.4750 0.5260 0.5020 0.4870 0.6270 Tinley Park 0.3760 0.3870 0.3790 0.4220 0.4270 0.3840 0.4450 0.4810 0.3700 0.3960 Public Library Districts: Grand Prairie 0.2730 0.2790 0.2770 0.3120 0.3230 0.3080 0.3760 0.3710 0.3560 0.4580 Frankfort 0.1550 0.1650 0.1750 0.1840 0.1880 0.2010 0.2070 0.2080 0.2140 0.2040 Richton Park 0.3830 0.3840 0.3780 0.4160 0.4070 0.3850 0.5610 0.5650 0.5310 0.6240 University Park 0.4930 0.5680 0.5560 0.5860 - - - - - - Fire Protection Districts: Country Club Hills - - - - - - - - 0.8810 0.8690 Sunnycrest 0.5900 0.5600 0.1930 0.2220 0.2110 0.2040 0.2500 0.2530 0.2370 0.2600 Miscellaneous: South Cook County Mosquito Abatement District 0.0060 0.0070 0.0100 0.0120 0.0130 0.0110 0.0150 0.0140 0.0130 0.0130 Crawford Countryside Sanitary District 0.1750 0.1880 0.1910 0.2030 - - - - - - Thorncreek Basin Sanitary District 5.2990 - - - - - - - - - Village of Olympia Fields Special Service Area 0.2530 0.1890 0.1870 0.2250 0.3300 0.3290 0.1990 0.1760 0.1100 0.1290

Rich Township High School District No. 227 3.5750 3.6598 3.6252 3.9747 3.9980 3.8863 4.1797 3.9309 3.7729 4.0713

* Tax rates are expressed in dollars per hundred dollars of equalized assessed valuationSource: Cook County Clerk's Office, Department of Tax Extension.

63


Representative Ten Largest TaxpayersCurrent Year and Nine Years Ago

Equalized EqualizedAssessed Percentage of Assessed Percentage ofValuation Total District Valuation Total District

Taxpayer 2007 Equalized Valuation Rank 1998 Equalized Valuation Rank

Realty American Group $22,145,919 1.65 1 -$ - -

Walmart Stores Inc. 17,216,063 1.28 2 10,331,690 1.35 2

GCAA General Management 15,137,852 1.13 3 - - -

New Plan Excel Prop TR 14,816,008 1.10 4 - - -

Neja Group LLC SFX 10,467,767 0.78 5 - - -

Holiday Inn Select 9,427,523 0.70 6 - - -

Matteson Town Center 9,285,328 0.69 7 - - -

Ace Hardware Corp. 8,697,647 0.65 8 7,696,710 1.00 8

Sears 8,531,683 0.64 9 9,595,117 1.25 3

Carmax 8,436,481 0.63 10 - - -

Vickie Norman KMZ - - - 15,522,671 2.03 1

Columbia Tax 31336 - - - 9,262,970 1.21 4

J C Penney Co. - - - 8,295,343 1.08 5

WEC 98C5 LLC Staubach - - - 8,151,725 1.06 6

Brijus Property Co. - - - 7,839,673 1.02 7

Discovery South Group - - - 7,473,017 0.98 9

Simon Debartolo Group - - - 7,157,119 0.93 10

TOTAL 124,162,271$ 9.25 % 84,168,916$ 11.91 %

Source: Cook County Clerk's and Assessor's Office.

June 30, 2008 June 30, 1999

64


Schedule of Property Tax Rates, Extensions and CollectionsLast Ten Fiscal Years

Tax Taxes Levied CollectionsLevy for the in SubsequentYear Fiscal Year Amount Years Amount

2007 47,874,494$ 19,014,341$ 39.72 % -$ 19,014,341$ 39.72 %

2006 46,000,712 18,739,325 40.74 23,078,396 41,817,721 90.91

2005 43,388,893 18,108,072 41.73 23,992,234 42,100,306 97.03

2004 40,417,172 16,338,340 40.42 23,546,764 39,885,104 98.68

2003 38,406,324 16,074,400 41.85 19,903,117 35,977,517 93.68

2002 36,619,462 14,550,793 39.74 19,920,495 34,471,288 94.13

2001 33,107,910 13,035,089 39.37 19,079,933 32,115,022 97.00

2000 30,400,450 13,238,948 43.55 13,883,397 27,122,345 89.22

1999 28,905,901 12,248,320 42.37 15,876,128 28,124,448 97.30

1998 28,078,570 11,936,292 42.51 14,608,750 26,545,042 94.54

Source: Cook and Will County Clerk's Office, Department of Tax Extensions and District Records.

Percentage ofLevy

Fiscal Year of the LevyCollections within the

Percentage ofLevy

Total Collections to Date

65


Outstanding Debt by TypeLast Ten Fiscal Years

PercentageYear General Total Equalized Equalized Percentage

Ended Obligation Capital Installment Technology Primary Assessed Assessed Personal PerJune 30, Bonds Leases Contracts Loan Government Valuation Valuation Income Capita

2008 60,410,000 $ 16,602 $ -$ -$ 60,426,602 $ 1,342,208,424 $ 4.50% 2.58% 952

2007 63,600,000 135,082 - - 63,735,082 1,256,905,871 5.07 2.75 1,004

2006 35,520,000 230,587 - - 35,750,587 1,196,647,630 2.99 1.55 563

2005 19,290,000 216,828 - - 19,506,828 1,016,849,251 1.92 0.85 307

2004 23,900,000 - 289,104 - 24,189,104 960,616,091 2.52 1.08 381

2003 28,450,000 - 368,844 170,032 28,988,876 942,241,810 3.08 1.30 457

2002 25,340,000 - 71,529 335,926 25,747,455 792,112,118 3.25 1.16 406

2001 26,435,000 - 131,013 495,550 27,061,563 773,378,670 3.50 1.83 426

2000 27,515,000 - - - 27,515,000 766,163,818 3.59 1.86 434

1999 19,785,000 - - - 19,785,000 689,672,697 2.87 1.34 312

Note: Population information and personal income can be found with the Demographic and Economic Statistics.

Data Source : District's Audited Annual Financial Statements.

Governmental Activties

66


Computatoin of Direct and Overlapping Bonded DebtJune 30, 2008

2007Assessed OutstandingValuation Bonds Percent Amount

Cook County $159,266,913,649 $2,953,610,000 0.843% $24,898,932Cook County Forest Preserve 159,266,913,649 121,270,000 0.843% 1,022,306Metropolitan Water Reclamation District 155,972,794,427 1,453,547,772 (1) 0.738% 10,727,183

Municipalities: City of Chicago Heights 447,210,578 43,250,000 1.599% 691,568City of Country Club Hills 279,677,928 47,920,000 40.790% 19,546,568Village of Matteson 557,780,580 2,675,000 (2) 100.000% 2,675,000Village of Olympia Fields 191,805,653 1,385,000 (2) 90.124% 1,248,217Village of Park Forest 204,687,009 14,024,800 81.015% 11,362,192Village of Richton Park 187,057,103 430,000 (2) 100.000% 430,000Village of Tinley Park 1,596,468,368 30,970,000 5.927% 1,835,592Village of University Park 102,382,696 12,125,000 3.101% 375,996

Miscellaneous: Frankfort Public Library District 1,163,114,142 625,000 1.009% 6,306University Park Public Library District 100,169,183 285,000 2.888% 8,231

Park Districts: Chicago Heights Park District 444,955,156 1,536,000 1.567% 24,069Country Club Hills Park District 286,007,141 500,900 (2) 40.355% 202,138Frankfort Square Park District 606,166,203 4,510,002 (2)(3) 8.846% 398,955Olympia Fields Park District 196,051,327 670,953 96.989% 650,751Tinley Park Park District 1,456,423,697 12,967,340 4.484% 581,456

School Districts: SD #159 555,602,057 35,801,919 (2)(3)(4) 100.000% 35,801,919SD #160 200,029,451 7,963,389 (2)(3) 58.475% 4,656,592SD #161 516,834,868 2,946,463 (3) 1.910% 56,277SD #162 524,753,773 24,465,000 100.000% 24,465,000SD #163 130,858,167 2,840,000 100.000% 2,840,000SD #194 242,096,541 6,540,000 1.721% 112,553Community College District #515 4,044,175,677 13,292,040 (3) 33.243% 4,418,673

Total Overlapping Debt 149,036,474

Rich Twp High School District #227 1,342,208,424 60,410,000 (2) 100.000% 60,410,000

TOTAL DIRECT AND OVERLAPPING GENERAL OBLIGATION BONDED DEBT $203,146,474

(1) Includes IEPA Revolving Loan Fund Bonds. (2) Excludes principal amounts of outstanding General Obligation (Alternate Revenue Source) Bonds which are expected to be paid from sources other than general taxation.(3) Includes original principal amounts of outstanding General Obligation Capital Appreciation Bonds.(4) Includes Taxable Debt Certificates._______Sources: Cook and Will County Clerk's Offices, Cook County Comptroller's Office and Office of the Treasurer of the Metropolitan Water Reclamation District of Greater Chicago.

Applicable to District

67


Legal Debt Margin InformationLast Ten Fiscal Years

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Debt limit 47,587,416$ 52,865,303$ 53,363,128$ 54,655,736$ 65,014,685$ 66,282,510$ 70,162,598$ 70,162,598$ 86,726,505$ 92,612,381$

Total net debt applicable to limit 19,785,000 27,515,000 26,435,000 25,340,000 28,450,000 23,900,000 19,290,000 35,520,000 63,600,000 60,410,000

Legal debt margin 27,802,416$ 25,350,303$ 26,928,128$ 29,315,736$ 36,564,685$ 42,382,510$ 50,872,598$ 34,642,598$ 23,126,505$ 32,202,381$

Total net debt applicable to the limit as a percentage of debt limit 41.58% 52.05% 49.54% 46.36% 43.76% 36.06% 27.49% 50.63% 73.33% 65.23%

Legal Debt Margin Calculation for Fiscal 2008

Assessed Value 1,342,208,424 $

Debt limit percentage 6.9%

Debt limit 92,612,381

Debt applicable to limit General obligation bonds 60,410,000

Legal debt margin 32,202,381 $

68


Demographic and Economic StatisticsLast Ten Calendar Years

Per CapitaCalendar Estimated Personal Personal

Year Population Income Income

2008 74,762 2,341,172,030 $ 31,315 $ 7.1 %

2007 74,112 2,320,817,280 31,315 4.9

2006 73,506 2,301,840,390 31,315 4.5

2005 73,557 2,303,437,455 31,315 5.9

2004 71,649 2,243,688,435 31,315 6.2

2003 71,354 2,234,450,510 31,315 6.8

2002 71,081 2,225,901,515 31,315 6.7

2001 70,081 1,482,563,555 21,155 5.5

2000 70,055 1,482,013,525 21,155 4.3

1999 70,019 1,481,251,945 21,155 4.4

Note: Population and personal income information based on most recent census data.

Note: Unemployment rates are per Illinois Department of Labor.

UnemploymentRate

Cook County

69


Principal Employers

Number of Percentage Number of PercentageEmployer Employees Rank of Total Employees Rank of Total

Saint James Hospital 2,350 1 3.5% 3,000 1 4.7%

Ford Motor Company 1,920 2 2.8% 2,100 2 3.3%

Roadway Express 1,400 3 2.1% 1,650 3 2.6%

Panduit Corportation 750 4 1.1% 1,000 4 1.6%

Prairie State College 625 5 0.9% 525 6 0.8%

Ludeman's Center 622 6 0.9% 689 5 1.1%

Midwest Suburban Publishers 350 7 0.5% 493 7 0.8%

UGN, Inc. 330 8 0.5% 450 9 0.7%

Chicago Heights Steel 300 9 0.4% - - -

City of Chicago Heights 288 10 0.4% - - -

Morgan Marshall Industries - - - 485 8 0.8%

Rich Twp High School Dist. 227 - - - 400 10 0.6%

8,935 10,792

Total Employment 67,623 63,470

Source: Written and telephone survey, 2008 Illinois Manufacturer's Register, 2008 Illinois Service Directory.

Current Year and Nine Years Ago2008 1999

70


Full-Time Equivalent District Employees by TypeCertified Staff *Last Ten Years

2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 2001-02 2000-01 1999-00 1998-99

Instructional Staff: Classrooms: Regular 301.6 317.3 271.7 151.1 151.1 152.8 142.3 140.6 131.2 140.0 Alternative - - - 5.6 5.6 7.4 5.4 - - - Special education 44.2 39.0 38.0 36.7 29.9 29.8 27.4 27.4 24.1 25.2 Vocational 25.6 28.3 29.3 28.2 26.7 31.6 25.8 25.4 23.9 25.6 Permanent substitutes - - - - - - - - - - Reading specialists 3.0 3.0 3.0 3.0 1.2 0.7 0.7 0.6 0.6 - Other - Ramp - - - - - - 0.4 - - - Project success - - - - 1.0 1.0 1.0 1.0 1.0 0.7

374.4 387.6 342.0 224.6 215.5 223.3 203.0 195.0 180.8 191.5Support Staff: Guidance/ Counselors 12.0 12.0 12.0 12.0 11.0 12.0 11.3 10.5 11.5 17.5 Learning center/media 3.0 3.0 3.0 3.0 3.0 3.0 3.0 2.8 3.0 3.0 Nurse 3.0 3.0 3.0 3.6 3.0 3.0 3.0 3.0 3.0 3.0 Psychological services 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 2.0 2.0 Public relations - - - - - - 0.6 0.6 0.6 - Social work/ attendance 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 Speech/ language 3.0 3.0 3.0 2.0 2.0 2.0 2.0 2.0 2.0 1.0 Other supporting services 12.0 12.0 12.0 16.4 13.6 20.4 16.5 16.1 16.5 0.2

39.0 39.0 39.0 43.0 38.6 46.4 42.4 41.0 41.6 29.7

Total teachers 413.4 426.6 381.0 267.6 254.1 269.7 245.3 236.0 222.4 221.2

Administration: Superintendent 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 Associate/ assistant superintendent 2 - - 1.0 1.0 1.0 1.0 1.0 2.0 2.0 Principals and assistant principals 9.0 9.0 9.0 7.0 7.0 13.0 13.0 12.0 12.0 12.0 Division chairpersons - - - 12 15 - - - - - Special administrators 11.0 13.0 13.0 5.0 4.0 3.0 3.0 3.0 1.0 2.0

23.0 23.0 23.0 26.0 28.0 18.0 18.0 17.0 16.0 17.0

Total certified staff 436.4 449.6 404.0 293.6 282.1 287.7 263.3 253.0 238.4 238.2

*Number of staff expressed in full-time equivalency units (FTE).Source of Information: District personnel records.

71


Operating StatisticsLast Ten Fiscal Years

Cost CostFiscal Estimated Operating Per PerYear Enrollment Expenditures Pupil Expenses Pupil

2008 4,500 53,963,802 $ 11,992 3.09 % 70,951,282 $ $15,767 16.90 %

2007 4,356 52,347,140 12,017 (1.77) 60,694,373 13,934 5.29

2006 4,146 53,293,065 12,854 9.08 57,646,832 13,904 9.33

2005 3,880 48,857,405 12,592 7.32 52,727,350 13,590 6.62

2004 3,656 45,523,057 12,452 (0.04) 49,454,149 13,527 (0.11)

2003 3,426 45,541,914 13,293 7.58 49,508,479 14,451 N/A

2002 3,501 42,334,899 12,092 10.78 N/A N/A N/A

2001 3,283 38,215,432 11,640 5.34 N/A N/A N/A

2000 3,357 36,278,740 10,807 4.46 N/A N/A N/A

1999 3,218 34,730,388 10,793 - N/A N/A N/A

Source: District records and audited financial statements.

N/A - Not Available

Note: Operating expenditures less debt service and capital outlay.

PercentageChange

PercentageChange

comprehensive annual financial report operations - annual financial report 2008.pdf(transportation,...

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