mclean county unit school district no. 5 normal, illinois

MCLEAN COUNTY UNIT SCHOOLDISTRICT NO. 5Normal, Illinois

FINANCIAL STATEMENTS ANDSUPPLEMENTAL INFORMATION

June 30, 2010

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MCLEAN COUNTY UNIT SCHOOL DISTRICT NO. 5

TABLE OF CONTENTS

PAGE

INDEPENDENT AUDITOR’S REPORT...................................................... 1

BASIC FINANCIAL STATEMENTSGovernment-Wide Financial Statements:

Statement of Net Assets - Modified Cash Basis.............................. 3Statement of Activities - Modified Cash Basis ................................. 4

Fund Financial Statements:Statement of Assets and Liabilities Arising from

Cash Transactions - Governmental Funds................................ 5Reconciliation of the Governmental Funds Statement

of Assets and Liabilities Arising From Cash Transactionsto the Statement of Net Assets - Modified Cash Basis .............. 7

Statement of Revenue Collected, Expenditures Paid, andChanges in Fund Balances - Governmental Funds................... 8

Reconciliation of the Governmental Funds Statementof Revenue Collected, Expenditures Paid, and Changes in Fund Balances With the Statement ofActivities - Modified Cash Basis ................................................ 10

Proprietary Funds - Internal Service Funds - Statement ofAssets and Liabilities Arising From Cash Transactions ............. 11

Proprietary Funds - Internal Service Funds - Statement ofRevenue Received, Expenses Disbursed andChanges in Net Assets.............................................................. 12

Statement of Fiduciary Net Assets - Modified Cash Basis .............. 13Fiduciary Fund - Statement of Changes in Fiduciary Net Assets -

Modified Cash Basis ................................................................. 14

Notes to Basic Financial Statements ................................................ 15

Required Supplementary Information - Unaudited:Schedule of Funding Progress - Illinois Municipal

Retirement and Other Post Employment Benefits ..................... 42Statement of Revenue Collected, Expenditures Paid,

and Changes in Fund Balances - Budget and Actual -General Fund and Working Cash Fund..................................... 43

Notes to Required Supplementary Information ............................... 45

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TABLE OF CONTENTS

STATEMENT PAGESUPPLEMENTAL INFORMATION

Combining and Individual Fund Financial Statements:Governmental Fund Types:

Other Governmental Funds:Combining Statement of Assets and Liabilities

Arising from Cash Transactions .......................................... 1 47Combining Statement of Revenue Collected,

Expenditures Paid, and Changes in Fund Balances............ 2 48

General Fund:Combining Statement of Assets and Liabilities Arising

From Cash Transactions........................................................... 3 49Combining Statement of Revenue Collected, Expenditures

Paid, and Changes in Fund Balance ......................................... 4 50Educational Account:

Statement of Revenue Collected, Expenditures Paid,and Changes in Fund Balance - Budget and Actual ............ 5 52

Operations and Maintenance Account:Statement of Revenue Collected, Expenditures Paid,

and Changes in Fund Balance - Budget and Actual ............ 6 63Tort Account:

Statement of Revenue Collected, Expenditures Paid,and Changes in Fund Balance - Budget and Actual ............ 7 64

Transportation Fund:Statement of Assets and Liabilities Arising From Cash

Transactions ............................................................................. 8 65Statement of Revenue Collected, Expenditures Paid,

and Changes in Fund Balance - Budget and Actual .................. 9 66

Municipal Retirement Fund:Statement of Assets and Liabilities Arising From Cash



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TABLE OF CONTENTS

STATEMENT PAGESUPPLEMENTAL INFORMATION (CONTINUED)

Combining and Individual Fund Financial Statements (Continued):Working Cash Fund:

Statement of Assets and Liabilities Arising From CashTransactions ............................................................................. 12 69

Statement of Revenue Collected, Expenditures Paid,and Changes in Fund Balance - Budget and Actual .................. 13 70

Debt Service Fund:Statement of Assets and Liabilities Arising From Cash



Capital Projects Fund:Statement of Assets and Liabilities Arising From Cash



Fire Prevention and Safety Fund:Statement of Assets and Liabilities Arising From Cash



Proprietary Fund - Internal Service FundsCombining Statement of Revenue Received, Expenses Paid,

and Changes in Net Assets…………......................................... 20 77

Agency Fund - Activity Funds:Statement of Changes in Assets and Liabilities - Modified

Cash Basis................................................................................ 21 78

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Independent Auditor’s Report

Board of EducationMcLean County Unit School District No. 5Normal, Illinois

We have audited the accompanying financial statements of the governmental activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of McLean County Unit School District No. 5 (District) as of and for the year ended June 30, 2010, which collectively comprise the District’s basic financial statements, as listed in the table of contents. These financial statements are the responsibility of McLean County Unit School District No. 5’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.

As discussed in Note 1, McLean County Unit School District No. 5 prepares its financial statements on the cash basis, which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position - modified cash basis of the governmental activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of McLean County Unit School District No. 5 as of June 30, 2010, and respective changes in financial position - modified cash basis for the year then ended on the basis of accounting described in Note 1.

In accordance with Government Auditing Standards, we have also issued our report dated November 1, 2010 on our consideration of McLean County Unit School District No. 5’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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Offices in 17 states and Washington, DC h

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The Illinois Municipal Retirement - Schedule of Funding Progress, Other Post-Employment Benefits - Schedule of Funding Progress, and the budgetary comparison information are not a required part of the basic financial statements but are supplemental information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplemental information. However, we did not audit the information and express no opinion on it. McLean County Unit School District No. 5 has not presented the Management’s Discussion and Analysis that accounting principles generally accepted in the United States of America require to supplement, although not be part of, the basic statements.

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise McLean County Unit School District No. 5’s basic financial statements. The combining, individual fund financial statements, and supplemental schedules listed in the table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements of McLean County Unit School District No. 5. Such information has been subjected to auditing procedures applied in the audit of the financial statements and, in our opinion, is fairly stated, in all material respects in relation to the financial statements taken as a whole.

Champaign, IllinoisNovember 1, 2010

MCLEAN COUNTY UNIT SCHOOL DISTRICT NO. 5STATEMENT OF NET ASSETS - MODIFIED CASH BASIS

June 30, 2010

Governmental ComponentActivities Unit

Cash and cash equivalents 48,312,059$ 369,863$ Investments 38,590,868 - Capital assets, net of accumulated depreciation 177,292,168 - Other assets 20,000 -

TOTAL ASSETS 264,215,095$ 369,863$

LIABILITIES AND NET ASSETS

CURRENT LIABILITIES

Payroll deductions and withholdings 943 - Other liabilities 10,742 2,400 Bonds and lease certificates payable, due within one year 7,255,000 - Capital leases, due within one year 221,579 - Loans payable 17,670,000 -

Total current liabilities 25,158,264 -

LONG-TERM LIABILITIES

Bonds and lease certificates payable, noncurrent 198,675,000 - Capital leases, noncurrent 384,353 -

Total long-term liabilities 199,059,353 -

TOTAL LIABILITIES 224,217,617 -

NET ASSETS

Invested in capital assets, net of related debt 6,487,811 - Restricted for employees' retirement system 2,879,315 - Restricted for grant purposes 173,539 - Restricted for debt service 8,501,295 - Restricted for tort immunity 2,714,102 - Restricted for self-insurance 4,888,999 - Unrestricted 14,352,417 367,463

TOTAL NET ASSETS 39,997,478$ 367,463$

ASSETS

See accompanying notes to basic financial statements.

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MCLEAN COUNTY UNIT SCHOOL DISTRICT NO. 5STATEMENT OF ACTIVITIES - MODIFIED CASH BASIS

Year Ended June 30, 2010

Net (Expense)Charges Operating Capital Revenue and

for Grants and Grants and Changes in ComponentExpenses Services Contributions Contributions Net Assets Unit

FUNCTIONS/PROGRAMS

Governmental activities:Instruction - regular programs 42,755,753$ 1,416,238$ 5,538,154$ -$ (35,801,361)$ -$ Instruction - special education 20,186,805 461,221 5,561,887 - (14,163,697) - Instruction - other 19,840,909 109,721 14,953,302 - (4,777,886) - Support services - student based 13,994,546 3,354,076 6,086,159 - (4,554,311) - Support services - non-student

based 43,447,598 786,270 45,826 - (42,615,502) - Community services 197,062 - 77,010 - (120,052) - Nonprogrammed charges 769,980 - - - (769,980) - Debt service:

Interest and bank feeson long-term debt 10,571,777 - - - (10,571,777) -

Depreciation - unallocated 3,345,864 - - - (3,345,864) -

TOTAL GOVERNMENTALACTIVITIES 155,110,294$ 6,127,526$ 32,262,338$ -$ (116,720,430) -

COMPONENT UNIT

Mackinaw Valley SpecialEducation Association 3,784,812$ 300,000$ 3,808,178$ -$ 323,366$

General revenues: Taxes: Property taxes, levied for general purposes 76,475,980 - Property taxes, levied for debt service 15,802,028 - Personal property replacement tax 1,544,578 - State aid 13,920,952 - Federal aid - medicaid 67,807 - Unrestricted investment earnings 2,608,048 - Miscellaneous 509,801 -

Total general revenues 110,929,194 -

Change in net assets (5,791,236) 323,366

Net assets:

Beginning, as previously reported 44,555,575 44,097

Prior period adjustment 1,233,139 -

Beginning of year, as restated 45,788,714 -

End of year 39,997,478$ 367,463$


Program Revenues

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MCLEAN COUNTY UNIT SCHOOL DISTRICT NO. 5STATEMENT OF ASSETS AND LIABILITIES

ARISING FROM CASH TRANSACTIONSGOVERNMENTAL FUNDS

June 30, 2010

GeneralFund

Cash and cash equivalents 22,249,669$ Investments 1,623,803 Other assets -

TOTAL ASSETS 23,873,472$

LIABILITIES

Other liabilities 9,087$

Payroll deductions and withholdings 448 Loans payable 16,150,000

TOTAL LIABILITIES 16,159,535

FUND BALANCESReserved for employee retirement system - Reserved for educational fund 173,539 Reserved for debt service - Reserved for tort immunity 2,714,102 Unreserved:

Undesignated, reported in:General Fund 4,826,296 Transportation Fund - Working Cash Fund - Capital Projects Funds -

Total fund balances 7,713,937

TOTAL LIABILITIES AND FUND BALANCES 23,873,472$

ASSETS

LIABILITIES AND FUND BALANCES

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Working Debt Fire Prevention Other Total Cash Service and Safety Governmental GovernmentalFund Fund Fund Funds Funds

8,075,222$ 8,499,088$ 460,252$ 4,138,829$ 43,423,060$ - 2,207 - 36,964,858 38,590,868 - - - 20,000 20,000

8,075,222$ 8,501,295$ 460,252$ 41,123,687$ 82,033,928$

-$ -$ -$ 1,655$ 10,742$

- - - 495 943 - - - 1,520,000 17,670,000

- - - 1,522,150 17,681,685

- - - 2,879,315 2,879,315 - - - - 173,539 - 8,501,295 - - 8,501,295 - - - - 2,714,102

- - - - 4,826,296 - - - 727,397 727,397

8,075,222 - - - 8,075,222 - - 460,252 35,994,825 36,455,077

8,075,222 8,501,295 460,252 39,601,537 64,352,243

8,075,222$ 8,501,295$ 460,252$ 41,123,687$ 82,033,928$


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MCLEAN COUNTY UNIT SCHOOL DISTRICT NO. 5RECONCILIATION OF THE GOVERNMENTAL FUNDS

STATEMENT OF ASSETS AND LIABILITIES ARISING FROM CASH TRANSACTIONS TO THE STATEMENT OF NET ASSETS -

MODIFIED CASH BASISJune 30, 2010

Total fund balances - governmental funds 64,352,243$

Amounts reported for governmental activities in thestatement of net assets are different because:

Capital assets used in governmental activities are notfinancial resources and therefore are not reported asassets in governmental funds. The cost of the assetsand related accumulated depreciation is:

Cost of capital assets 229,923,255 Accumulated depreciation (52,631,087) 177,292,168

Long-term liabilities arising from cash transactions are not due and payable in the current period and therefore are not reported as liabilities in the funds. The total oflong-term liabilities at June 30, 2010 is:

General obligation bonds payable 205,930,000 Capital leases payable 605,932

Total long-term liabilities (206,535,932)

An internal service fund is used by the District to charge the costs of employee health costs and workman's compensation costs. The assets and liabilities of the internal service fund are included in governmental activitiesin the statement of net assets 4,888,999

TOTAL NET ASSETS - GOVERNMENTAL ACTIVITIES 39,997,478$


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STATEMENT OF REVENUE COLLECTED, EXPENDITURES PAID,

AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS


GeneralFund

REVENUE COLLECTEDLocal sources:

Property taxes and payments in lieu of taxes 67,045,688$ Personal property replacement taxes 1,404,021 Transportation fees - Tuition 484,103 Earnings on investments 16,616 Food services 3,214,674 Pupil activities 300,831 Textbook rentals 1,132,399 Other local sources 862,016

State sources 34,914,330 Federal sources 7,268,410

Total revenue collected 116,643,088

EXPENDITURES PAIDInstruction - regular programs 43,417,045 Instruction - special education 20,308,694 Instruction - other 18,510,382 Support services - student based 12,471,707 Support services - non-student based 22,620,448 Community services 187,957 Nonprogrammed charges 769,980 Capital outlay 869,914 Debt service:

Principal retirement - Interest 13,689 Other - bank fees -

Total expenditures paid 119,169,816

Excess (deficiency) of revenue collected over expenditures paid (2,526,728)

OTHER FINANCING SOURCES AND (USES)Proceeds from capital lease obligation 448,724 Transfers in - Transfers out (1,194,486)

Total other financing sources and (uses) (745,762)

Excess (deficiency) of revenue collected and other financing sources over expenditures paid and other financing uses (3,272,490)

FUND BALANCE

Beginning of year 10,986,427

End of year 7,713,937$

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Working Debt Fire Prevention Other TotalCash Service and Safety Governmental GovernmentalFund Fund Fund Funds Funds

990,584$ 15,802,028$ 990,584$ 7,449,124$ 92,278,008$ - - - 140,557 1,544,578 - - - 46,471 46,471 - - - - 484,103

6,801 20,177 99 2,559,858 2,603,551 - - - - 3,214,674 - - - - 300,831 - - - - 1,132,399 - - 400,000 196,833 1,458,849 - - - 4,068,357 38,982,687 - - - - 7,268,410

997,385 15,822,205 1,390,683 14,461,200 149,314,561

- - - - 43,417,045 - - - - 20,308,694 - - - 1,441,623 19,952,005 - - - - 12,471,707 - - 150,775 20,812,138 43,583,361 - - - 9,105 197,062 - - - - 769,980 - - 1,251,788 44,178,304 46,300,006

- 7,856,813 - - 7,856,813 - 10,552,012 - - 10,565,701 - 6,076 - - 6,076

- 18,414,901 1,402,563 66,441,170 205,428,450

997,385 (2,592,696) (11,880) (51,979,970) (56,113,889)

- - - - 448,724 - 1,194,486 - - 1,194,486 - - - - (1,194,486)

- 1,194,486 - - 448,724

997,385 (1,398,210) (11,880) (51,979,970) (55,665,165)

7,077,837 9,899,505 472,132 91,581,507 120,017,408

8,075,222$ 8,501,295$ 460,252$ 39,601,537$ 64,352,243$


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MCLEAN COUNTY UNIT SCHOOL DISTRICT NO. 5RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT

OF REVENUE COLLECTED, EXPENDITURES PAID, AND CHANGES IN FUND BALANCES WITH THE STATEMENT OF ACTIVITIES - MODIFIED CASH BASIS


Total net change in fund balances - governmental funds (55,665,165)$

Amounts reported for governmental activities in thestatement of activities are different because:

Capital outlays are reported in governmental funds asexpenditures. However, in the statement of activities, thecost of those assets is allocated over their estimated useful lives as depreciation expense. Below are thedepreciation expense and capital outlays for the year:

Capital outlay/equipment 46,300,006$ Depreciation expense (5,628,804) 40,671,202

Issuance of long-term debt provides current financial resources to

governmental funds, but the issuance increases long-term debt in the

statement of net assets

Capital lease obligation (448,724)

Repayment of bond principal, note principal, and capital lease principal are expenditures in the governmental funds, butthe repayments reduce long-term debt in the statement 8,942,773 of net assets.

The net change in net assets of the internal service fund is reported in governmental activities 708,678

CHANGE IN NET ASSETS OF GOVERNMENTAL ACTIVITIES (5,791,236)$


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MCLEAN COUNTY UNIT SCHOOL DISTRICT NO. 5PROPRIETARY FUNDS - INTERNAL SERVICE FUNDS

June 30, 2010

ASSETS

Cash 4,888,999$

LIABILITIES -$

NET ASSETSReserved 4,888,999

TOTAL LIABILITIES AND NET ASSETS 4,888,999$


STATEMENT OF ASSETS AND LIABILITIESARISING FROM CASH TRANSACTIONS

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MCLEAN COUNTY UNIT SCHOOL DISTRICT NO. 5PROPRIETARY FUNDS - INTERNAL SERVICE FUNDS

STATEMENT OF REVENUE RECEIVED, EXPENSES DISBURSED ANDCHANGES IN NET ASSETS

MODIFIED CASH BASISYear Ended June 30, 2010

Operating revenue receivedDistrict contributions 9,022,796$ Employee contributions 1,350,551

Total operating revenue received 10,373,347

Operating expenses disbursed

Claims 7,245,722

Administrative expenses 2,423,284 Bank service charges 160

Total operating expenses disbursed 9,669,166

Operating income 704,181

Nonoperating revenues receivedInterest on investments 4,497

Change in net assets 708,678

Net AssetsBeginning of year 4,180,321



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MCLEAN COUNTY UNIT SCHOOL DISTRICT NO. 5STATEMENT OF FIDUCIARY NET ASSETS - MODIFIED CASH BASIS

June 30, 2010

Agency Fund - Flexible Benefit All Student

Plan Trust Fund Activity Funds Total

ASSETS

Cash 154,941$ 1,340,047$ 1,494,988$

LIABILITIES

Due to organizations - student activity funds - 1,340,047 1,340,047

NET ASSETSHeld in trust for benefits 154,941 - 154,941

TOTAL LIABILITIES AND FUND BALANCE 154,941$ 1,340,047$ 1,494,988$


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FIDUCIARY FUND

FLEXIBLE BENEFIT PLAN TRUST FUND

STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS

MODIFIED CASH BASIS


Additions

Employee contributions 462,828$

Deductions

Health insurance premiums and medical expenditures 375,933

Dependant care payments 133,096 Miscellaneous 435

Total deductions 509,464

Change in net assets (46,636)

Net assetsBeginning of year 201,577

End of year 154,941$


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MCLEAN COUNTY UNIT SCHOOL DISTRICT NO. 5NOTES TO THE FINANCIAL STATEMENTS

June 30, 2010

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NOTE 1 - DESCRIPTION OF ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

McLean County Unit School District No. 5 (District) is a school district serving students in Normal, Illinois and the surrounding area. Revenues are substantially generated as a result of taxes assessed and allocated to the District and grants received from other state and federal governmental agencies. The District’s revenues are, therefore, primarily dependent upon the availability of funds at the state and federal level and the economy within its territorial boundaries. Industry within the territorial area is primarily retail and agricultural.

The following is a summary of the more significant accounting policies which the District applies:

(a) Financial Reporting Entity

In evaluating how to define the government, for financial reporting purposes, management has considered all potential component units. The decision to include a potential component unit in the reporting entity was made by applying the criteria set forth in the Codification of Government Accounting and Financial Reporting Standards, Section 2100. The financial reporting entity consists of (a) the primary government, McLean County Unit School District No. 5, which has a separately elected governing body, is legally separate and fiscally independent of other state and local governments, (b) organizations for which the primary government is financially accountable, and (c) other organizations for which the nature and significance of theirrelationship with the primary government are such that exclusion would cause the reporting entity’s financial statements to be misleading or incomplete.

Discretely Presented Component Unit

Mackinaw Valley Special Education Association (Association) is a component unit of the District. There is a joint agreement between the District and the Association and the District exercises significant influence over the assets, operations, and management of the Association.

The regulatory financial statements for the Association can be obtained from the District’s administrative office located at 1809 W. Hovey, Normal, IL 61761-4339.

There are no other component units of McLean County Unit School District No. 5 nor is McLean County Unit School District No. 5 dependent on any other entity.

(b) Government-Wide and Fund Financial Statements

The government-wide financial statements (i.e., the statement of net assets and the statement of activities) report information on all of the nonfiduciary activities of the District. For the most part, the effect of interfund activity has been removed from these statements.


June 30, 2010

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NOTE 1 - DESCRIPTION OF ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(b) Government-Wide and Fund Financial Statements (Continued)

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to students, employees, and others who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment.

Taxes and other items not properly included among program revenues are reported instead as general revenues.

Separate financial statements are provided for governmental funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds are reported as separate columns in the fund financial statements.

(c) Measurement Focus, Basis of Accounting, and Financial Statement Presentation

The government-wide financial statements are reported using the cash basis of accounting as are the fiduciary fund financial statements. Capital assets and long-term debt are recognized on an economic resources measurement focus. Revenues are recorded when the cash is received and expenses are recorded when they are paid. Property taxes are recognized as revenues in the year for which they are levied for budgetary purposes.

Governmental fund financial statements are reported using the cash basis of accounting. Revenues are recognized when the cash is received. Expenditures are recorded when they are paid.

The District reports the following major governmental funds:

General Fund - The Educational, Operations and Maintenance and Tort Accountscomprise the general operating fund. It is used to account for all financial resources except those required to be accounted for in other funds.

The Educational Account includes the regular operations of the Educational Fund. All receipts that are not allocated by law or contractual agreement to some other fund are accounted for in this account. This account is used for regular operations, including educational costs, textbook costs, the food service department and certain other special programs, including many federal and state programs.

The Operations and Maintenance Account includes the cost of maintaining, improving, or repairing school buildings and property.

The Tort Account is used to account for resources to fund, and costs related to, tort immunity and tort judgment purposes.


June 30, 2010

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NOTE 1 - DESCRIPTION OF ORGANIZATION AND SUMMARY OF SIGNIFICANTACCOUNTING POLICIES (CONTINUED)

(c) Measurement Focus, Basis of Accounting, and Financial Statement Presentation(Continued)

Working Cash - The Working Cash Fund is used to account for financial resources held by the District which may be temporarily loaned to other funds.

Debt Service Fund - The Debt Service Fund is used to account for the accumulation of resources for payment of general long-term bonded debt principal, interest, and related costs.

Fire Prevention and Safety - The Fire Prevention and Safety Fund is used to account for financial resources to alter and/or reconstruct existing facilities to meet fire prevention and safety standards, to meet environmental regulations, to reduce energy consumption, and for security purposes.

Additionally, the District reports the following fund types:

Internal Service Funds - These funds are used to account for self-insured employee health plan and the workman’s compensation plan.

Fiduciary - These funds are used to account for assets held by the District in a trustee capacity or as an agent for individuals, private organizations, other governments or other funds.

The Flexible Benefit Plan Trust Fund is used to account for the plan maintained on behalf of employers.

Agency Funds - Student Activity Funds - The Student Activity Funds are custodial in nature (assets equal liabilities), do not involve the measurement of the results of operations, and are treated as Agency Funds.

(d) Budgets and Budgetary Accounting

The District follows these procedures in establishing the budgetary data reflected in the financial statements:

1. Prior to July 1, a tentative operating budget is submitted to the Board of Education for the fiscal year commencing on July 1. The tentative operating budget includes proposed expenditures and the means of financing them.

2. Public hearings are conducted at a public meeting to obtain taxpayer comments, at least 30 days prior to final action by the Board of Education.


June 30, 2010

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(d) Budgets and Budgetary Accounting (Continued)

3. Prior to October 1, the budget is legally adopted through passage of a resolution. Prior to the last Tuesday in December, a tax levy ordinance is filed with the County Clerk to obtain tax revenues.

4. The Board of Education is authorized to transfer up to 10 percent of the total budget between departments within any fund. Any revisions that alter the total expenditures of any fund must be amended by the same procedure as provided for the original budget. The legal level of control is the fund level.

5. All appropriations lapse at the end of each fiscal year.

(e) Common Cash Account

Separate bank accounts are not maintained for all District funds. Instead, various funds maintain their cash balances in a common checking account. Accounting records are maintained to show the portion of the common cash balance attributable to each participating fund.

(f) Deposits and Investments

According to the District’s investment policy, the District is allowed to invest in securities as authorized by the Illinois Compiled Statutes, which include obligations of the U.S. Treasury and its agencies; interest-bearing savings; certificates of deposit or time deposits; commercial paper; money market mutual funds; short term discount obligations of the Federal National Mortgage Association; dividend-bearing share accounts of a credit union; Public Treasurer’s Investment Pool; Illinois School District Liquid Asset Fund Plus and repurchase agreements.

(g) Property Taxes

Property taxes attach as an enforceable lien on property as of January 1. The District must file its tax levy ordinance by the last Tuesday in December of each year. The District’s property tax is levied each year on all taxable real property located in the District. Property taxes are payable in two installments in approximately June and September at the County Collector’s office. Sale of taxes on any uncollected amounts is prior to November 30 or shortly thereafter by the County Collector’s office. Final distribution to all taxing bodies is usually made prior to November 30 by the County Collector’s office. Taxes, as other revenues of the District, are recognized on the cash basis of accounting and are, therefore, recognized as received.


June 30, 2010

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(h) Land, Buildings, and Equipment

Capital assets, which include land, land improvements, buildings and improvements, and equipment, have been acquired for general governmental purposes. Assets purchased are recorded as expenditures in the individual funds and capitalized at costs in the general fixed assets account group. Donated fixed assets are valued at their estimated fair value on the date donated.

All buildings, improvements, and equipment are depreciated using the straight-line method over the following estimated useful lives:

Improvements other than building 20 yearsBuildings 50 yearsEquipment 5-10 years

(i) Long-term Obligations

In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the statement of net assets.

In the fund financial statements, governmental funds recognize bond premiums and discounts, as well as bond issue costs, during the current period. 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. The face amount of debt issued is reported as other financing sources at the date received. Payments on debt principal are recorded as an expenditure.

(j) Fund Equity Restrictions and Designations

Reservations of fund equity are for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose.

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.


June 30, 2010

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(k) Adoption of New Accounting Standards

As further discussed in Note 13, effective July 1, 2009, the District adopted Governmental Accounting Standards Board (GASB) Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions. This statement requires a systematic measurement of other postemployment benefit (OPEB) expense over a period that approximates employees’ years of service. The Statement also requires the information about actuarial accrued liabilities associated with OPEB and whether and to what extent progress is being made in funding the plan.

(l) Use of Estimates

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

NOTE 2 - DEPOSITS AND INVESTMENTS

Custodial Credit Risk - Deposits

Custodial credit risk for is the risk that, in the event of a bank failure, the District’s deposits may not be returned to it. The District’s investment policy requires that all amounts deposited or invested with financial institutions in excess of any insurance limit be collateralized in accordance with the Public Fund Investment Act 30 ILCS2351.

The market value of the pledged securities should equal or exceed the portion of the deposit requiring collateralization.

As of June 30, 2010, none of the District’s bank balances of $23,336,843 was exposed to custodial credit risk.

The carrying amount of these deposits, excluding petty cash of $2,430, is $22,422,428 as of June 30, 2010.


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NOTE 2 - DEPOSITS AND INVESTMENTS (CONTINUED)

At June 30, 2010, the District had the following investments and maturities:

InvestmentCarrying MaturitiesAmount (In Years)

Investment Type (Cost) Less Than One

Sweep Accounts $ 40,614,645 $ 40,614,645Money Market $ 23,330,413 $ 23,330,413Federal Farm Credit Bank Note $ 2,397,862 $ 2,397,862

Interest Rate Risk

Interest rate risk is the risk that the value of investments will decrease as a result of a rise in interest rates. The District’s investment policy does not limit investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates.

Custodial Credit Risk

For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the District will not be able to recover the value of the investments or collateral securities that are in the possession of an outside party. Regarding the District’s investments in the sweep accounts, all of the underlying securities are held by the financial institution, not in the name of the District.

Certificates of deposit are presented as investments on the Statement of Assets and Liabilities Arising from Cash Transactions, but are considered to be deposits when assessing custodial credit risk.

The District’s investments in the Illinois School District Liquid Asset Fund Plus - Liquid Class and Max Class were rated AAAm by Standard & Poor’s Ratings. The Federal Credit Bank Note was rated AAA by Standard & Poor’s Ratings.

The following is a reconciliation between the information presented above and cash and investments as presented on the Statement of Assets and Liabilities Arising from Cash Transactions:

Carrying amount of (see above):Petty Cash $ 2,430Deposits 22,422,428Investments 66,342,920

$ 88,767,778

Cash and cash equivalents $ 50,176,910Investments 38,590,868

$ 88,767,778


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NOTE 3 - CAPITAL ASSETS

Capital asset activity for the year ended June 30, 2010 was as follows:

Beginning EndingBalance Increases Decreases Balance

Governmental activities:Capital assets not being

depreciatedLand $ 4,082,669 $ - $ - $ 4,082,669Construction in progress - 40,221,016 - 40,221,016

Total capital assets not beingdepreciated 4,082,669 40,221,016 - 44,303,685

Capital assets being depreciated:Improvements other than

buildings 320,389 - 1,084 319,305Buildings 164,234,477 2,260,480 - 166,494,957Equipment:

10 - year 13,283,814 2,435,993 2,402,700 13,317,1075 - year 10,168,627 1,382,517 6,062,943 5,488,201

Total capital assets beingdepreciated 188,007,307 6,078,990 8,466,727 185,619,570

Total capital assets 192,089,976 46,300,006 8,466,727 229,923,255

Less accumulated depreciationfor:Improvements other than

buildings 78,227 15,965 1,084 93,108Buildings 38,779,216 3,329,899 - 42,109,11510-year equipment 8,410,189 1,331,711 2,402,700 7,339,2005-year equipment 8,201,378 951,229 6,062,943 3,089,664

Total accumulated depreciation 55,469,010 5,628,804 8,466,727 52,631,087

Governmental activities capital assets, net $136,620,966 $ 40,671,202 $ - $177,292,168

Depreciation expense of $2,282,940 was charged to support services - student based, while $3,345,864 was unallocated.


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NOTE 4 - LONG-TERM DEBT

The following is a summary of long-term debt activity of the District for the year ended June 30, 2010:

Description

Balance

July 1, 2009 Additions Deductions

Balance

June 30, 2010

Due In

Less Than

One Year

General Obligation Bonds:

1998A Building Bonds Series $ 5,085,000 $ - $ 4,820,000 $ 265,000 $ 265,000

2000 School Series 26,320,000 - - 26,320,000 4,740,000

2005 Refunding Bonds 61,625,000 - 490,000 61,135,000 1,260,000

2008 School Bond Series 82,260,000 - 1,630,000 80,630,000 565,000

2009 School Bond Series 31,700,000 - - 31,700,000 -

Total General Obligation Bonds 206,990,000 - 6,940,000 200,050,000 6,830,000

Lease Certificates:

1999 Lease Certificates 210,000 - 210,000 - -

2002 Lease Certificates 2,855,000 - 150,000 2,705,000 160,000

2009 Lease Certificates 3,195,000 - 20,000 3,175,000 265,000

Total Lease Certificates 6,260,000 - 380,000 5,880,000 425,000

Total Lease Certificates $ 213,250,000 $ - $ 7,320,000 $ 205,930,000 $ 7,255,000

Bonded Indebtedness

Current requirements for principal and interest expenditures are payable solely from future revenues of the Debt Service Fund which consists principally of property taxes collected by the District and interest earnings.

The General Obligation School Bonds, Series 1998A are dated June 1, 1998, with principal due annually on December 1, commencing on December 1, 1998. Interest is due semi-annually on June 1 and December 1, with an interest rate on the remaining bonds at 4.70 percent. Original issue of $21,930,000. Final payment due December 1, 2010.

The General Obligation School Bonds, Series 2000 are dated June 1, 2000, with principal due annually on December 1, commencing on December 2002. Interest is due semi-annually on December 1 and June 1, with an interest rate on the remaining bonds of 7.375 percent. Original issue of $92,610,000. A portion of the bonds were advance funded with proceeds of the General Obligation Refunding School Bonds, Series 2005. Final payment due December 1, 2011.

The General Obligation Refunding School Bonds, Series 2005 are dated February 1, 2005, with principal due annually on December 1, commencing on December 1, 2005. Interest is due semi-annually on June 1 and December 1, with an interest rate on the remaining bonds ranging between 3 and 4 percent. Original issue of $64,200,000. Final payment due December 1, 2017.


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NOTE 4 - LONG-TERM DEBT (CONTINUED)

Bonded Indebtedness (Continued)

The General Obligation School Bonds, Series 2008 are dated April 28, 2008, with principal due annually on December 1, commencing December 1, 2008. Interest is due semi-annually on June 1 and December 1, with an interest rate on the remaining bonds ranging between 3.25 and 5.50 percent. Original issue of $82,260,000. Final payment due December 1, 2023.

The General Obligation School Bonds, Series 2009 are dated March 10, 2009, with principal due annually on December 1, commencing December 1, 2018. Interest is due semi-annually on December 1 and June 1, with an interest rate on the remaining payments ranging between 4 and 5 percent. Original issue of $31,700,000. Final payment due December 1, 2020.

Lease Purchase Obligations

At June 30, 2010, the principal balance of the following lease purchase obligations was $5,880,000. Lease purchase obligations are typically paid for from the General and Transportation Funds.

The original issue of $4,500,000 of lease certificates dated December 1, 1999, provided for serial retirement of principal on December 1 and interest payable on December 1 and June 1 of each year at 5.00% - 7.00%. During the fiscal year ended June 30, 2009, a portion of this outstanding obligation was defeased. During the fiscal year ended June 30, 2010, the remaining principal outstanding was paid in full.

The original issue of $3,500,000 of lease certificates dated September 1, 2002, provides for serial retirement of principal on December 1 and interest payable on December 1 and June 1 of each year at 3.75% - 5.25%. At June 30, 2010, there was principal outstanding in the amount of $2,705,000.

The original issue of $3,195,000 of lease certificates dated March 10, 2009, provides for serial retirement of principal on December 1 and interest payable on December 1 and June 1 of each year at 2.00% - 4.00%. At June 30, 2010, there was principal outstanding in the amount of $3,175,000.


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The annual debt service requirements of general obligation bonds and leases are as follows:

Bonds Leases Certificates Total TotalPrincipal Interest Principal Interest Principal Interest

2011 $ 6,830,000 $ 9,573,665 $ 425,000 $ 206,695 $ 7,255,000 $ 9,780,3602012 8,280,000 9,115,078 445,000 192,633 8,725,000 9,307,7112013 9,780,000 8,671,928 465,000 176,420 10,245,000 8,848,3482014 11,300,000 8,266,321 485,000 157,957 11,785,000 8,424,2782015 12,975,000 7,778,224 510,000 140,458 13,485,000 7,918,6822016-2020 77,435,000 28,953,098 2,960,000 402,954 80,395,000 29,356,0522021-2024 73,450,000 8,245,638 590,000 24,000 74,040,000 8,269,638

$ 200,050,000 $ 80,603,952 $ 5,880,000 $ 1,301,117 $ 205,930,000 $ 81,905,069

Prior Years’ Debt Defeasance

In prior years, the District has defeased various bond issues by creating separate irrevocable trust funds. New debt has been issued and the proceeds have been used to purchase U.S. government securities that were placed in the trust funds. The investments and fixed earnings from the investments are sufficient to fully service the refunded debt until the debt is called or matures. For financial reporting purposes, the debt has been considered defeased and therefore removed as a liability from the District’s long-term liabilities. As of June 30, 2010, the amount of defeased debt outstanding but removed from long-term liabilities is $69,210,000.

Capital Lease Payable

Changes in capital lease payable for the year ended June 30, 2010 are summarized as follows:

Balance at June 30, 2009 $ 1,779,981Additions 448,724Payments (1,622,773)Balance at June 30, 2010 605,932Less current portion (221,579)Long-term portion $ 384,353


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Capital Lease Payable (Continued)

The District has two outstanding agreements to lease computer equipment under capital lease arrangements. Annual collective total payments ranging from $9,186 to $233,345, including interest at 4.156 and 6.48 percent, and are due monthly and annual through August 2012.

Following is a schedule of the future minimum lease payment and the present value of future minimum lease payments under the capital lease at June 30, 2010:

Years ending June 30:2011 $ 254,9572012 254,9572013 160,194

670,108Less amount representing interest (64,176)Present value of net minimum lease payments $ 605,932

Legal Debt Limit

Section 5/19-1 of the Illinois School Code limits the amount of qualifying debt of the District to 13.8% of the latest equalized assessed value.

The estimated legal debt margin of the District at June 30, 2010, was calculated as follows:

Legal Debt Limit $ 277,237,706Less Qualifying Debt 206,535,932Legal Debt Margin $ 70,701,774

NOTE 5 - SHORT-TERM FINANCING

During the fiscal year ended June 30, 2010, the District authorized the issuance of a $23,000,000 Tax Anticipation Promissory Note with Commerce Bank to fund expenses in anticipation of collection of real estate taxes. At June 30, 2010, $17,670,000 was borrowed and outstanding against the note.

NOTE 6 - INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS

The following interfund loans were made and repaid during the fiscal year ended June 30, 2010:

Due To Due FromBalance

July 1, 2009 Loans Made Loans RepaidBalance

June 30, 2010

Transportation General $ 520,000 $ - $ 520,000 $ -


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NOTE 6 - INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS (CONTINUED)

Interfund loans were made to meet current operating expense obligations.

The District also transferred $627,999 from the General Fund (Operations and Maintenance Account) and $566,487 from the General Fund (Educational Account) to the Debt Service Fund to make capital lease payments.

NOTE 7 - PROPERTY TAXES

Property taxes attach as an enforceable lien on property as of January 1. Taxes are levied on or before the last Tuesday in December annually. Applicable current year (2009 and 2008levies) tax rates are as follows (per $100 of assessed valuation):

2009 Levy 2008 Levy Maximum

Educational 2.70011 2.63546 2.72000Operations and Maintenance 0.49634 0.50000 0.50000Debt Service 0.81652 0.77272 NoneTransportation 0.19854 0.20000 0.20000Municipal Retirement 0.07345 0.06688 NoneSocial Security 0.10502 0.10557 NoneTort Immunity 0.11425 0.11869 NoneSpecial Education 0.03974 0.04000 0.04000Working Cash 0.04968 0.05000 0.05000Fire Prevention and Safety 0.04968 0.05000 0.05000Leasing 0.04968 0.05000 0.05000Correction (0.00012) 0.00000 None

4.69289 4.58932

NOTE 8 - SPECIAL TAX LEVIES AND RESTRICTED EQUITY

A reserve of $4,888,999 has been accumulated for self-insurance costs for employee health benefits in the Self-Funded Insurance Fund, which is recorded as an Internal Service Fund in these financial statements.

A reserve of $154,941 has been accumulated in the Flexible Benefit Plan Fund, which is recorded as a Trust Fund in these financial statements.

Cash receipts and the related cash disbursements of the Special Education restricted tax levy are accounted for in the General Fund (Educational Account). Expenditures disbursed exceeded revenue received in both funds resulting in no restricted fund balances as of June 30, 2010 for this purpose.


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NOTE 8 - SPECIAL TAX LEVIES AND RESTRICTED EQUITY (CONTINUED)

Cash receipts and the related cash disbursements of the Facility Leasing restricted tax levy are accounted for in the General Fund (Education and Operations and Maintenance Accounts). Expenditures disbursed exceeded revenue received in both funds resulting in no restricted fund balances as of June 30, 2010 for this purpose.

Proceeds from federal, state, and flow-through mini grants and the related expenditures have been included in the General Fund (Educational Account). At June 30, 2010, revenue received from federal, state, and flow-through mini-grants exceeded the expenditures disbursed forthose specific purposes in the General Fund (Educational Account), resulting in a restricted balance of $173,539.

Receipts and related disbursements of the tort tax levy are accounted for in the General Fund (Tort Account). The fund’s equity, the excess of cumulative receipts over cumulative disbursements, is restricted for future qualified tort disbursements.

NOTE 9 - OTHER REQUIRED INDIVIDUAL FUND DISCLOSURES

Generally accepted accounting principles require disclosure of certain information concerning individual funds including:

a. Excess of expenditures over budget in individual funds:

ExpendituresExcess Actual

Fund Budget Actual Over Budget

General Fund $105,905,676 $119,169,816 $ 13,264,140

Debt Service Fund $ 17,960,565 $ 18,414,901 $ 454,336

The General Fund was over budget related to noncash on-behalf payments for retirement of $14,716,086 that were recorded in the financial statement process, but were not included as an expenditure in the budgeting process.

b. Deficit fund balances of individual funds. As of June 30, 2010, there were no funds with a deficit fund balance.

c. Individual fund interfund balances. As of June 30, 2010, there were no interfund balances.

NOTE 10 - SELF-INSURANCE PLANS

Unemployment Coverage

All employees of the District are covered under the State of Illinois Unemployment Insurance Act. The District elected to be self-insured, and therefore, is liable to the State for any payments made to an unemployed worker claiming benefits.


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NOTE 10 - SELF-INSURANCE PLANS (CONTINUED)

Medical Coverage

The District is self-insured for medical coverage, which is provided to school personnel. Blue Cross/Blue Shield administers claims for a fixed fee per enrolled employee. The District is responsible for the payment of claims up to annual levels of $175,000 per employee. The point of attachment for aggregate stop-loss coverage under the plan is $9,617,251. The District purchases commercial insurance for all other risks of loss. Settled claims have not exceeded this commercial coverage in the past three fiscal years.

At the beginning of each fiscal year, the District determines the amount of funds needed to operate the plan. This estimated total cost is used to develop standard unit charges for employees and for dependents covered under the plan.

The District has established a separate Self-Insurance Internal Service Fund to account for the operation of this self-insurance plan. District contributions to the fund are made on the basis of 100% of the charges for employee coverage. Through payroll deductions, the employees are responsible for payment of the entire charges related to coverage of their dependents.

Claims paid were approximately $6,718,000 for the fiscal year ended June 30, 2010.

Workman’s Compensation Coverage

The District established a self-insured plan for workman’s compensation claims for District employees. The District has accounts for the plan in the Workman’s Compensation Self-Insurance Internal Service Fund. Cannon Cochran Management Services, Inc. administers the claims paying process. The District mitigates its risk by purchasing an insurance policy for specific and aggregate excess workers compensation and employers liability indemnity. The policy has a specific limit per each accident of $350,000, a specific limit per each employee for disease of $350,000, and an aggregate limit of $2,000,000. District contributions to the fund are made on the basis of 100% of the charges incurred under the stop-loss limits.

NOTE 11 - CONTINGENCIES

The District has received funding from state and federal grants in the current and prior years that are subject to audits by the granting agencies. The school board believes any adjustments that may arise from these audits will be insignificant to District operations.

There are several lawsuits pending against the District for various reasons. The outcome and eventual liability of the District, if any, in these cases are not known at this time and accordingly, no specific provisions for those lawsuits are included in the financial statements. However, based upon past experiences, management believes that insurance coverage and undesignated Tort reserves maintained by the District is sufficient to cover any potential claims.


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NOTE 12 - RETIREMENT COMMITMENTS

Teachers’ Retirement System of the State of Illinois

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 primary responsibility for the funding of the plan, but contributions from participating employers and members are also required. The TRS Board of Trustees is responsible for the system’s administration.

TRS members include all active non-annuitants who are employed by a TRS-covered employer to provide services for which teacher certification is required. The active member contribution rate through June 30, 2010 was 9.4 percent of creditable earnings. These contributions, which may be paid on behalf of employees by the employer, are submitted to TRS by the employer. The active member contribution rate was also 9.4 percent for the years ended June 30, 2009and 2008.

The State of Illinois makes contributions directly to TRS on behalf of the District’s TRS-covered employees.

On-behalf Contributions. The State of Illinois makes employer pension contributions on behalf of the District. For the year ended June 30, 2010, the State of Illinois contributions were based on 23.38 percent of creditable earnings not paid from federal funds, and the District recognized revenue received and expenditures paid of $14,205,702 in pension contributions that the State of Illinois paid directly to TRS. For the years ended June 30, 2009 and 2008, the State of Illinois contribution rates as percentages of creditable earnings were 17.08 ($9,475,407) and 13.11 percent ($7,012,600), respectively.

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

a) 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, 2010 were $351,390. Contributions for the years ending June 30, 2009 and 2008 were $333,649 and $310,245, respectively.

b) Federal and Trust Fund Contributions. When TRS members are paid from federal andspecial trust funds administered by the District, there is a statutory requirement for the District to pay an employer contribution from those funds. Under a policy adopted by the TRS Board of Trustees that was first effective in the fiscal year ended June 30, 2006, employer contributions for employees paid from federal and trust funds will be the same as the state contribution rate to TRS.


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NOTE 12 - RETIREMENT COMMITMENTS (CONTINUED)

Teachers’ Retirement System of the State of Illinois (Continued)

For the year ended June 30, 2010, the employer pension contribution was 23.38 percent of salaries paid from federal and trust funds. For the years ended June 30, 2009 and 2008, the employer pension contribution was 17.08 and 13.11 percent of salaries paid from federal and special trust funds, respectively. For the year ended June 30, 2010, salaries totaling $2,945,807 were paid from federal and trust funds that required employer contributions of $688,730. For the years ended June 30, 2009 and 2008, required District contributions were $349,974 and $310,311, respectively.

c) Early Retirement Option. The District is also required to make one-time employer contributions to TRS for members retiring under the Early Retirement Option (ERO). The payments vary depending on the age and salary of the member.

Public Act 94-0004 made changes in the ERO program that were in effect for all ERO retirements in fiscal years 2008 through 2010. The Act increased member and employer contributions and eliminated the waiver of member and employer ERO contributions that had been in effect for members with 34 years of service.

Under the current ERO, the maximum employer contribution is 117.5 percent and applies when the member is age 55 at retirement.

For the year ended June 30, 2010, the District paid $113,705 to TRS for employer contributions under the ERO program. For the years ended June 30, 2009 and June 30, 2008, the District paid $61,618 and $43,177 in employer ERO contributions, respectively.

Salary Increases Over Six Percent and Excess Sick Leave

Public Act 94-0004 added two new 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, 2010, the District paid $39,151 to TRS for employer contributions due on salary increases in excess of 6 percent. For the years ended June 30, 2009, and 2008, the District paid $15,087 and $0, respectively, to TRS for employer contributions due on salary increases in excess of 6 percent.

If an employer grants sick leave days in excess of the normal annual allotment and those days are used as TRS service credit, the employer makes a contribution to TRS. The contribution is based on the number of excess sick leave days used as service credit, the highest salary used to calculate final average salary, and the TRS total normal cost rate (18.55 percent of salary during the year ended June 30, 2010).


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For the year ended June 30, 2010 the District made no payment to TRS for sick leave days granted in the excess of normal annual allotment. For the years ended June 30, 2009 and June 30, 2008, the District paid $682 and $3,097, in employer contributions granted for sick leave days, respectively.

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, 2009. The report for the year ended June 30, 2010 is expected to be available in late 2010.

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

THIS Fund Employer Contributions

The District (employer) 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, 2010. State of Illinois contributions were $510,384, and the District recognized revenue and expenditures of this amount during the year.


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THIS Fund Employer Contributions (Continued)

On Behalf Contributions to THIS Fund (Continued)

State contributions intended to match active member contributions during the years ended June 30, 2009 and 2008 were also 0.84 percent of pay. State contributions on behalf of district employees were $466,004 and $449,320, respectively.

Employer Contributions to THIS Fund

The District also makes contributions to THIS Fund. The District THIS Fund contribution was 0.63 percent during the years ended June 30, 2010, June 30, 2009, and June 30, 2008. For the year ended June 30, 2010, the District paid $382,788 to the THIS Fund. For the years ended June 30, 2009 and June 30, 2008, the District paid $362,412 and $336,990 to the THIS Fund, respectively, 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 Avenue, 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, postretirement increases, and death benefits to plan members and beneficiaries. The District plan is affiliated with the Illinois Municipal Retirement Fund (IMRF), an agent multi-employer plan. Benefit provisions are established by statute and may only be changed by the General Assembly of the State of Illinois. IMRF issues a publicly available financial report that includes financial statements and required supplementary information. The report may be obtained on-line at www.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 require employers to contribute the amount necessary, in addition to member contributions, to finance the retirement coverage of its own employees. The employer contribution rate for calendar year 2009 was 9.59 percent of annual covered payroll. The employer 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.

www.imrf.org.


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Illinois Municipal Retirement Fund (Continued)

Annual Pension Cost

For the year ending December 31, 2009, the District’s annual pension cost of $1,602,139 for the regular plan was equal to the District’s required and actual contributions.

Three-Year Trend Information for the Regular Plan

Fiscal Annual Percentage NetYear Pension of APC Pension

Ending Cost (APC) Contributed Obligation

December 31, 2009 $1,602,139 100% $0December 31, 2008 1,480,593 100 0December 31, 2007 1,390,884 100 0

The required contribution for 2009 was determined as part of the December 31, 2007 actuarial valuation using the entry age normal actuarial cost method. The actuarial assumptions at December 31, 2007 included (a) 7.50 percent investment rate of return (net of administrative and direct investment expenses), (b) projected salary increases of 4.00 percent per year, attributable to inflation, (c) additional projected salary increases ranging from 0.4 to 10.0percent 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 unfunded 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 23 years.

Funded Status and Funding Progress

As of December 31, 2009 the most recent actuarial valuation date, the regular plan was funded 74.06 percent. The actuarial accrued liability for benefits was $30,438,911 and the actuarial value of assets was $22,542,799 resulting in an underfunded actuarial accrued liability (UAAL) of $7,896,112. The covered payroll (annual payroll of active employees covered by the plan) was $16,706,350 and the ratio of the UAAL to covered payroll was 47 percent. In conjunction with the December 2009 actuarial valuation the market value of investments was determined using techniques that spread the effect of short-term volatility in the market value of investments over a five-year period with a 20 percent corridor between the actuarial and market value of assets. In 2010, the unfunded actuarial accrued liability is being amortized on a level percentage of projected payroll on an open 30 year basis.


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The schedule of funding progress, presented as Required Supplemental Information (RSI)following the notes to financial statements, presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. The schedule of funding progress includes information from Mackinaw Valley Special Education Association, a joint agreement administered by the District.

Other Retirement Incentives

For the duration of the current employment agreement, qualifying teachers of the District who have completed ten years or more of creditable service with the school district, who have contributed to Illinois Teacher’s Retirement System for twenty years, who are at least fifty-five years of age, and whose retirement will not result in a penalty to the District, shall be eligible for the following retirement incentive:

1. If the Board is given irrevocable notice of retirement by May 1st three years prior to the year of retirement, the Board shall pay a six percent retirement incentive for eachremaining year of service.

2. If the Board is given irrevocable notice of retirement by May 1st two years prior to the year of retirement, the Board shall pay a six percent retirement incentive for each remaining year of service.

3. If the Board is given irrevocable notice of retirement by May 1st one year prior to the year of retirement, the Board shall pay a six percent retirement incentive for each remaining year of service.

As of June 30, 2010, the District was obligated for $364,802 under this retirement incentive. The current employment agreement expired on June 30, 2010.

NOTE 13 - OTHER POSTEMPLOYMENT BENEFITS

The District implemented Governmental Accounting Standards Board Statement (GASB) No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions, effective July 1, 2009. This statement requires the costs of postemployment benefits other than pension benefits to be recognized over a period that approximates an employee’s years of service. Implementation of this statement results in a liability of $24,912. Additional disclosures required by this statement are included below.


June 30, 2010

36

NOTE 13 - OTHER POSTEMPLOYMENT BENEFITS (CONTINUED)

a. Plan Description

In addition to providing the pension benefits described in Note 12, the District provides postemployment health care benefits (OPEB) for retired employees through a single employer defined benefit plan (Retiree Healthcare Program). The benefits, benefit levels, employee contributions and employer contributions are governed by the District and can be amended by the District through its personnel manual and union contracts. The plan is not accounted for as a trust fund, as an irrevocable trust has not been established to account for the plan. The plan does not issue a separate report.

b. Benefits Provided

The District provides limited health care insurance coverage for its eligible retired employees in accordance with Illinois statutes, which creates an implicit subsidy of retiree health care coverage. To be eligible for benefits, an employee must qualify for retirement under one of the District’s retirement plans. Upon a retiree reaching age 65 years of age, Medicare becomes the primary insurer.

c. Membership

The District’s Retiree Healthcare Program includes two employee groups: those qualifying for Illinois Municipal Retirement and Teachers’ Retirement System of the State of Illinois, which are the same as those used for the pension plan.

At June 30, 2010, membership consisted of:

Retirees and beneficiaries currently receiving benefits 21Terminated employees entitled to benefits but not yet receiving them 0Active vested plan members 611Active nonvested plan members 686

Total 1,318

Participating employers 1

d. Funding Policy

The District is not required to and currently does not advance fund the cost of benefits that will become due and payable in the future. Active employees do not contribute to the plan until retirement.


June 30, 2010

37


e. Annual OPEB Costs and Net OPEB Obligation

The District’s annual other postemployment benefit (OPEB) cost is calculated based on the annual required contribution (ARC) of the District, an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. The ARC is the periodic required contribution to fund the postemployment health care benefits of both active and retired employees, calculated in accordance with GASB Statement No. 45. It includes both the value of benefits earned during the year (normal cost) and an amortization of the unfunded actuarial accrued liability. Although there is no requirement to make contributions equal to the ARC, it serves as the starting point for determining the annual OPEB cost.

The District first had an actuarial valuation performed for the plan as of July 1, 2009 to determine the funded status of the plan as of that date as well as the employer’s annual required contribution (ARC) for the fiscal year ended June 30, 2010. The annual OPEB cost is the cost of the postemployment health care benefits each fiscal year. If there is no net OPEB obligation, then the annual OPEB cost is equal to the ARC. However, if there is a net OPEB obligation, the annual OPEB cost reflects adjustment for interest on the net OPEB obligation. The District’s annual OPEB cost of $91,440 was equal to the ARC for the fiscal year 2010, as the transition liability was set at zero as of July 1, 2009. The District’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for the year ended June 30, 2010 was as follows:

PercentageAnnual of Annual

Fiscal Year OPEB Employer OPEB Cost Net OPEBEnded Cost Contributions Contributed Obligation

June 30, 2010 $ 91,440 $ 66,528 72.8% $ 24,912

The net OPEB obligation as of July 1, 2009 (most recent information available), was calculated as follows:

Annual required contribution $ 56,240Amortization 30,846Interest on net OPEB obligation 4,354

Annual OPEB cost 91,440

Contributions made 66,528Increase in net OPEB obligation 24,912

Net OPEB obligation, beginning of year -

Net OPEB obligation, end of year $ 24,912

The net OPEB obligation is the difference between the annual OPEB cost and the District’s contributions to the plan since the implementation date.


June 30, 2010

38


e. Annual OPEB Costs and Net OPEB Obligation (Continued)

Funded Status and Funding Progress. The funded status of the plan as of July 1, 2010, was as follows:

Actuarial accrued liability (AAL) $ 908,539Actuarial value of plan assets - Unfunded actuarial accrued liability (UAAL) 908,539Funded ratio (actuarial value of plan assets/AAL) 0%Covered payroll (active plan members) N/AUAAL as a percentage of covered payroll N/A

Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the ARCs of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, typically presents multiyear trend information that shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the AALs for benefits. In the current year, only one year is reflected as this is the first year of implementation.

Actuarial Methods and Assumptions. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations.

The unfunded actuarial accrued liability is amortized as a level percentage of pay, open over thirty years, resulting in an amortization of $30,846 for the twelve month period.

Discount Rate. The discount rate as of July 1, 2009 is 5.00 percent. The discount rate is determined by the plan sponsor based on the estimated long-term investment yield on the investments that are expected to be used to finance the payment of benefits.

Trend Rate for Health Claims. The trend rate for health claims is 8.00 percent initial and 6.00 percent ultimate. The trend rate is determined by the plan sponsor based on historical data and anticipated experience under the plan.

Actuarial Cost Method. The method used to calculate normal cost and actuarial accrued liability is the entry age cost method.

There is no actuarial value of assets as the District has not advance funded its obligation.


June 30, 2010

39

NOTE 14 - COMMITMENTS

As of June 30, 2010, the District had the following construction commitments:

Contractor Description Amount

Various contractors Benjamin Elementary School construction $ 3,100,463Various contractors Sugar Creek School construction 1,272,306Various contractors New Cedar Ridge Elementary School construction 2,757,922Various contractors George L. Evans Jr. High School construction 11,726,543Various contractors Security projects and renovations 5,749,443

$ 24,606,677

Operating Leases

The District has entered into the following operating lease agreements:

Lessor Items Leased

Jim’s Mobile Office Portable classroomsXerox Corporation Various duplicating equipmentDigital Copy Systems, LLC CopiersWatts Copy Systems, Inc. CopiersAmerican Capital Financial Services Various equipment

The future rental payments due on the above leases are as follows:

Year ending June 30:2011 $ 553,1892012 551,6422013 223,2082014 50,069

$ 1,378,108

NOTE 15 - JOINT AGREEMENTS

The District is a member of the Mackinaw Valley Special Education Association and the McLean-DeWitt Regional Vocational System, along with other area school districts. The District’s pupils benefit from the programs administered under these joint agreements, and the District benefits from jointly administered grants and programming. Financial information for the Mackinaw Valley Special Education Association can be located at 1809 W. Hovey, Normal, IL 61761. Financial information for the McLean-DeWitt Regional Vocational System can be located at 300 East Monroe St., Bloomington, IL 61702.


June 30, 2010

40

NOTE 16 - PENDING GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB)PRONOUNCEMENTS

GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definition, issued March 2009, will be effective for the District beginning with its year ending June 30, 2012. This statement establishes accounting and financial reporting standards for all governments that report governmental funds. It establishes criteria for classifying fund balances into specifically defined classifications and clarifies definitions for governmental fund types. The District has not determined the effect, if any, the adoption of the new accounting standard will have on the District’s net assets.

NOTE 17 - PRIOR PERIOD ADJUSTMENT

Net assets have been restated to correct payments made on geo-thermal projects which were not previously included as part of capital assets.

Net assets, July 1, 2009, as previously reported $ 163,001,338Correction of an error - capital expenditures not previously capitalized 1,233,139

Net assets, July 1, 2009, as restated $ 164,234,477

This information is an integral part of the accompanying financial statements.

41

REQUIRED SUPPLEMENTARY INFORMATION

UNAUDITED

THIS PAGE INTENTIONALLY LEFT BLANK

42

MCLEAN COUNTY UNIT SCHOOL DISTRICT NO. 5ILLINOIS MUNICIPAL RETIREMENT

REQUIRED SUPPLEMENTARY INFORMATION -SCHEDULE OF FUNDING PROGRESS AND

OTHER POST EMPLOYMENT BENEFITS

(Unaudited)

The trend information for the three years ended December 31, 2009 is as follows:

ActuarialAccrued UAAL as a

Actuarial Liability Unfunded PercentageActuarial Value of (AAL) - AAL Funded Covered of CoveredValuation Assets Entry Age (UAAL) Ratio Payroll Payroll

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

12/31/09 $22,542,799 $30,438,911 $ 7,896,112 74.06% $16,706,350 47.26%12/31/08 21,707,427 28,109,741 6,402,314 77.22 15,358,852 41.6812/31/07 23,334,663 26,141,319 2,806,656 89.26 14,324,244 19.59

On a market value basis, the actuarial value of assets as of December 31, 2009 is $21,802,095. On a market basis, the funded ratio would be 71.63%.

OTHER POSTEMPLOYMENT BENEFITSREQUIRED SUPPLEMENTARY INFORMATION -

SCHEDULE OF FUNDING PROGRESS

Trend information for the year ended June 30, 2010 is as follows:



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

6/30/10 $ - $ 908,539 $ 908,539 0% N/A N/A

Information is not available for other years as the District implemented Governmental Accounting Standards Board Statement No. 45 for fiscal year 2010. This is the only actuarial valuation completed to date.

MCLEAN COUNTY UNIT SCHOOL DISTRICT NO. 5STATEMENT OF REVENUE COLLECTED, EXPENDITURES PAID, AND CHANGES

IN FUND BALANCES - BUDGET AND ACTUALGENERAL FUND AND WORKING CASH FUND


(Unaudited)

OriginalBudget

REVENUE COLLECTEDProperty taxes and payments in lieu of taxes 66,782,805$ Personal property replacement taxes 1,384,600 Tuition 335,600 Earnings on investments 131,000 Food services 3,099,000 District/school activity income 100,000 Textbook rentals 1,189,500 Other local sources 490,790 State sources 25,093,100 Federal sources 3,756,270

Total revenue collected 102,362,665

EXPENDITURES PAIDInstruction - regular programs 43,870,140 Instruction - special education 18,003,380 Instruction - other 2,243,100 Support services - student based 12,982,560 Support services - non-student based 23,219,442 Community services - Nonprogrammed charges 450,000 Capital outlay 399,000 Debt service:

Interest on long-term debt 40,000

Total expenditures paid 102,067,572

Excess of revenue collected over expenditures paid 295,093

OTHER FINANCING SOURCES (USES)Proceeds from capital lease obigation - Transfers out (627,999)

Total other financing sources (uses) (627,999)

Excess of revenue collected and other financing sourcesover expenditures paid and other financing uses (332,906)$

FUND BALANCEBeginning of year

End of year

43

General Final Original Final

Budget Actual Budget Budget Actual

67,138,936$ 67,045,688$ 991,440$ 895,342$ 990,584$ 1,350,000 1,404,021 - - -

363,589 484,103 - - - 140,000 16,616 100,000 100,000 6,801

3,324,950 3,214,674 - - - 225,900 300,831 - - -

1,000,000 1,132,399 - - - 604,368 862,016 - - -

22,933,476 34,914,330 - - - 4,840,510 7,268,410 - - -

101,921,729 116,643,088 1,091,440 995,342 997,385

43,422,838 43,417,045 - - - 20,501,372 20,308,694 - - - 3,851,289 18,510,382 - - -

12,860,924 12,471,707 - - - 24,856,415 22,620,448 - - -

255,924 187,957 - - - 646,293 769,980 - - - 383,073 869,914 - - -

- 13,689 - - -

105,905,676 119,169,816 - - -

(3,983,947) (2,526,728) 1,091,440 995,342 997,385

- 448,724 - - - (627,999) (1,194,486) - - -

(627,999) (745,762) - - -

(4,611,946)$ (3,272,490) 1,091,440$ 995,342$ 997,385$

10,986,427 7,077,837

7,713,937$ 8,075,222$

Working Cash

44

45

MCLEAN COUNTY UNIT SCHOOL DISTRICT NO. 5NOTES TO REQUIRED SUPPLEMENTARY INFORMATION


NOTE 1 - BUDGETS AND BUDGETARY ACCOUNTING


1. Prior to July 1, a tentative operating budget is submitted to the Board of Education for the fiscal year commencing on July 1. The tentative operating budget includes proposed expenditures and the means of financing them.



4. The Board of Education is authorized to transfer up to 10 percent of the total budget between departments within any fund. Any revisions that alter the total expendituresof any fund must be amended by the same procedure as provided for the original budget. The legal level of control is the fund level.


NOTE 2 - BASIS OF ACCOUNTING

McLean County Unit School District No. 5 budget and actual are prepared on the cash basis of accounting for all budgeted funds, including the major funds, General and Working Cash Funds(General and Special Revenue type major funds), as reflected on the prior pages.

NOTE 3 - EXCESS OF EXPENDITURES OVER BUDGET

The following funds had expenditures over budget:




General Fund $105,905,676 $119,169,816 $ 13,264,140

Debt Service Fund $ 17,960,565 $ 18,414,901 $ 454,336

The General Fund was over budget related to noncash on-behalf payments for retirement of $14,716,086 that were recorded in the financial statement process, but were not included as an expenditure in the budgeting process.

46

SUPPLEMENTAL INFORMATION

MCLEAN COUNTY UNIT SCHOOL DISTRICT NO. 5OTHER GOVERNMENTAL FUNDS

COMBINING STATEMENT OF ASSETS AND LIABILITIES ARISING FROM CASH TRANSACTIONS

June 30, 2010

CapitalProjects

Municipal CapitalTransportation Retirement Projects Total

Cash 2,249,547$ 1,646,032$ 243,250$ 4,138,829$

Investments - 1,233,283 35,731,575 36,964,858 Other current assets - - 20,000 20,000

TOTAL ASSETS 2,249,547$ 2,879,315$ 35,994,825$ 41,123,687$

LIABILITIES

Other liabilities 1,655$ -$ -$ 1,655$

Payroll deductions and withholdings 495 - - 495 Loans payable 1,520,000 - - 1,520,000

TOTAL LIABILITIES 1,522,150$ -$ -$

FUND BALANCESReserved for employee

retirement system - 2,879,315 - 2,879,315 Unreserved 727,397 - 35,994,825 36,722,222

Total fund balance 727,397 2,879,315 35,994,825 39,601,537

TOTAL LIABILITIES AND FUND BALANCES 2,249,547$ 2,879,315$ 35,994,825$ 41,123,687$

LIABILITIES AND FUND BALANCES

ASSETS

Special Revenue Funds

STATEMENT 1

47

STATEMENT 2

MCLEAN COUNTY UNIT SCHOOL DISTRICT NO. 5OTHER GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUE COLLECTED, EXPENDITURES PAID, AND CHANGES IN FUND BALANCES


Capital TotalProjects Other

Municipal Capital GovernmentalTransportation Retirement Projects Funds

REVENUE COLLECTED

Local sources:Property taxes and payments in

lieu of taxes 3,960,535$ 3,488,589$ -$ 7,449,124$ Personal property replacement taxes - 140,557 - 140,557 Transportation fees 46,471 - - 46,471 Earnings on investments 722 6,133 2,553,003 2,559,858 Other local sources 9,045 - 187,788 196,833

State sources 4,068,357 - - 4,068,357

Total revenue collected 8,085,130 3,635,279 2,740,791 14,461,200

EXPENDITURES PAID

Current:Instruction - 1,441,623 - 1,441,623 Support services 7,565,856 2,547,294 10,698,988 20,812,138

Community services - 9,105 - 9,105 Capital outlay 720,196 - 43,458,108 44,178,304

Total expenditures paid 8,286,052 3,998,022 54,157,096 66,441,170

Deficiency of revenue collected over expenditures paid (200,922) (362,743) (51,416,305) (51,979,970)

FUND BALANCESBeginning of year 928,319 3,242,058 87,411,130 91,581,507

End of year 727,397$ 2,879,315$ 35,994,825$ 39,601,537$

Special Revenue Funds

48

STATEMENT 3

MCLEAN COUNTY UNIT SCHOOL DISTRICT NO. 5GENERAL FUND

COMBINING STATEMENT OF ASSETS AND LIABILITIESARISING FROM CASH TRANSACTIONS

June 30, 2010

Operations and

ASSETS Educational Maintenance Tort Total

Cash 18,528,592$ 2,630,658$ 1,090,419$ 22,249,669$Investments - - 1,623,803 1,623,803

TOTAL ASSETS 18,528,592$ 2,630,658$ 2,714,222$ 23,873,472$

LIABILITIES ANDFUND BALANCE

LIABILITIES

Other payables 4,873$ 4,094$ 120$ 9,087$

Payroll deductions & withholdings 448 - - 448 Loans payable 13,950,000 2,200,000 - 16,150,000

TOTAL LIABILITIES 13,955,321$ 2,204,094$ 120$ 16,159,535$

FUND BALANCEReserved for educational fund 173,539$ -$ -$ 173,539$ Reserved for tort immunity - - 2,714,102 2,714,102 Unreserved - undesignated 4,399,732 426,564 - 4,826,296

Total fund balance 4,573,271 426,564 2,714,102 7,713,937

TOTAL LIABILITIES ANDFUND BALANCE 18,528,592$ 2,630,658$ 2,714,222$ 23,873,472$

49

STATEMENT 4


COMBINING STATEMENT OF REVENUE COLLECTED,EXPENDITURES PAID, AND CHANGES IN FUND BALANCE


Operations andEducational Maintenance Tort Total


Property taxes and payments inlieu of taxes 54,206,177$ 10,525,305$ 2,314,206$ 67,045,688$

Personal property replacementtaxes 1,404,021 - - 1,404,021

Tuition 484,103 - - 484,103 Earnings on investments 10,444 1,228 4,944 16,616 Food services 3,214,674 - - 3,214,674 District/school activity income 300,831 - - 300,831 Textbook rentals 1,132,399 - - 1,132,399 Contributions from private sources 233,611 - - 233,611 Refund of prior year's expenditures 27,164 - - 27,164 Payments of surplus moneys

from TIF districts 6,831 - - 6,831 Driver's education fees 90,614 - - 90,614 Other local sources 36,000 440,562 27,234 503,796

Total local sources 61,146,869 10,967,095 2,346,384 74,460,348

State sources 34,914,330 - - 34,914,330 Federal sources 7,268,410 - - 7,268,410

Total revenue collected 103,329,609 10,967,095 2,346,384 116,643,088

EXPENDITURES PAIDCurrent:

Instruction 82,236,121 - - 82,236,121 Support services 22,520,006 10,219,757 2,352,392 35,092,155 Community services 187,957 - - 187,957 Nonprogrammed charges 769,980 - - 769,980

Capital outlay 840,914 29,000 - 869,914 Debt service:

Interest on long-term debt 13,689 - - 13,689

Total expenditures paid 106,568,667 10,248,757 2,352,392 119,169,816

Excess (deficiency) of revenue collected overexpenditures paid (3,239,058) 718,338 (6,008) (2,526,728)

50

STATEMENT 4(CONTINUED)


COMBINING STATEMENT OF REVENUE COLLECTED,EXPENDITURES PAID, AND CHANGES IN FUND BALANCE


Operations andEducational Maintenance Tort Total

Excess (deficiency) of revenue collected overexpenditures paid (3,239,058) 718,338 (6,008) (2,526,728)

OTHER FINANCING SOURCES (USES)Proceeds from capital lease obigation 448,724 - - 448,724 Transfers out (566,487) (627,999) - (1,194,486)

Total other financing sources (uses) (117,763) (627,999) - (745,762)

Excess (deficiency) of revenue collected andother financing sources

over expenditures paid andother financing uses (3,356,821) 90,339 (6,008) (3,272,490)

FUND BALANCE

Beginning of year 7,930,092 336,225 2,720,110 10,986,427

End of year 4,573,271$ 426,564$ 2,714,102$ 7,713,937$

51

STATEMENT 5

MCLEAN COUNTY UNIT SCHOOL DISTRICT NO. 5EDUCATIONAL ACCOUNT

STATEMENT OF REVENUE COLLECTED, EXPENDITURES PAID,AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL


Original FinalBudget Budget Actual


Property taxes and payments in lieu of taxes 54,529,505$ 54,263,636$ 54,206,177$ Personal property replacement taxes 1,384,600 1,350,000 1,404,021 Tuition 335,600 363,589 484,103 Earnings on investments 121,000 130,000 10,444 Food services 3,099,000 3,324,950 3,214,674 District/school activity income 100,000 225,900 300,831 Textbook rentals 1,189,500 1,000,000 1,132,399 Contributions from private sources 414,290 159,681 233,611 Refund of prior years' expenditures - 7,284 27,164 Payments of surplus moneys from TIF districts - - 6,831 Drivers' education fees 76,500 84,000 90,614 Other local sources - 15,000 36,000

Total local sources 61,249,995 60,924,040 61,146,869

State sources:Unrestricted grants-in-aid:

General State aid 17,294,100 15,755,000 13,920,952 Restricted grants-in-aid:

Special education 5,705,000 6,090,021 5,099,038 Career and technical education:

Secondary program improvement 11,100 - - Bilingual education:

Downstate - T.P.I. and T.B.E. 107,000 84,700 84,772 State free lunch and breakfast 60,900 59,600 46,284 School breakfast incentive - 833 833 Driver education 119,000 66,700 99,962 Early childhood - block grant 375,000 358,166 333,539 Reading improvement block grant 334,000 166,683 165,487 School safety and educational improvement

block grant 410,000 - 54,278 State charter schools 13,989 13,989 Other State funds 677,000 337,784 379,110 On-behalf payments for teacher's

Retirement - - 14,716,086

Total state sources 25,093,100 22,933,476 34,914,330

52






REVENUE COLLECTED (CONTINUED)Federal sources:

Restricted grants-in-aid received directly fromthe Federal government through the State:

Title V - Innovation and flexibility formula 3,700$ 3,700$ -$ Food service 1,319,000 1,328,869 1,482,090 Title 1:

Low income 1,244,200 1,225,768 1,160,490 Low income - neglected, private - 81,674 44,955

Title IV:Safe and drug free schools - formula 32,500 34,400 33,789

Federal - special education:IDEA - Room & board 298,000 278,000 462,849

Career and technical education - Perkins:Title IIE - tech. prep. 11,100 - 10,400

ARRA - General state aid - education stabilization - - 2,318,428

ARRA - Title I - low income 337,400 453,900 374,381 ARRA - Title I - delinquent, private - 36,600 26,900 ARRA - general state aid - other

government services stabilization - 771,099 771,099 Emergency immigrant assistance - 18,800 1,085 Title III - English language acquisition 18,800 10,300 11,100 Title II - Teacher quality 356,570 462,400 452,375 Medicaid matching - administrative

outreach 135,000 135,000 67,807 Other federal sources - - 50,662

Total federal sources 3,756,270 4,840,510 7,268,410

Total revenue collected 90,099,365 88,698,026 103,329,609

EXPENDITURES PAIDCurrent:

Instruction:Regular programs:

Salaries 36,556,000 36,704,892 36,682,645 Employee benefits 5,622,880 5,076,694 5,159,786 Purchased services 224,230 356,872 389,063 Supplies and materials 1,393,230 1,231,680 989,103 Other objects 73,800 40,200 34,247 Non-capitalized equipment - 12,500 162,201

Total regular programs 43,870,140 43,422,838 43,417,045

53






EXPENDITURES PAID (CONTINUED)

Special education:Salaries 11,701,250$ 13,413,910$ 13,291,131$ Employee benefits 2,881,780 2,589,840 2,612,421 Purchased services 130,500 157,100 126,844 Supplies and materials 89,850 243,222 171,666 Other objects 3,200,000 4,097,300 4,093,492 Non-capitalized equipment - - 13,140

Total special education 18,003,380 20,501,372 20,308,694

Remedial and supplemental programs K-12Salaries 1,032,600 1,238,295 1,237,985 Employee benefits 160,550 437,084 441,205 Purchased services 26,500 - - Supplies and materials 139,100 83,710 75,626

Other objects 1,500 - -

Total remedial and supplemental 1,360,250 1,759,089 1,754,816

programs

CTE programs:Salaries - 8,210 5,833 Employee benefits - 400 843 Purchased services - 2,400 2,625 Supplies and materials - 3,503 2,087

Total CTE programs - 14,513 11,388

Interscholastic programs:Salaries - 411,000 430,302 Employee benefits - 15,205 15,431 Purchased services 398,150 280,188 263,407 Supplies and materials - 178,439 132,898 Other objects - 35,405 33,928 Non-capitalized equipment - 6,000 47,660

Total interscholastic programs 398,150 926,237 923,626

54






EXPENDITURES PAID (CONTINUED)Summer school:

Salaries -$ 83,359$ 53,329$ Employee benefits - 6,437 5,304 Supplies and materials - 4,015 2,293

Total summer school - 93,811 60,926

Gifted programs:Salaries 34,900 28,100 25,185 Employee benefits 1,000 1,000 550 Purchased services 13,000 7,180 7,083 Supplies and materials 25,800 17,870 17,015 Other objects 1,300 2,600 2,600

Total gifted programs 76,000 56,750 52,433

Driver's education programs:Salaries 40,000 - 79,725 Employee benefits 1,550 - 2,780 Purchased services - - 3,000 Supplies and materials - - 979

Total driver's education programs 41,550 - 86,484

Bilingual programs:Salaries 313,000 581,500 489,123 Employee benefits 50,150 86,010 86,327 Purchased services 4,000 100 75 Supplies and materials - 1,939 1,058

Total bilingual programs 367,150 669,549 576,583

55






EXPENDITURES PAID (CONTINUED)Truants' alternative programs:

Salaries -$ 79,840$ 81,631$ Employee benefits - 15,900 15,835 Purchased services - 30,000 32,500 Supplies and materials - 5,600 9,647 Other objects - 200,000 188,427

Total truants' alternative programs - 331,340 328,040

On-behalf payments for teachers'

retirement - - 14,716,086

Total instruction 64,116,620 67,775,499 82,236,121

Support services:Attendance and social work services:

Salaries 865,500 823,650 803,051 Employee benefits 119,700 112,800 111,402 Purchased services 6,000 4,000 4,559 Supplies and materials 1,300 1,200 433

Total attendance services 992,500 941,650 919,445

Guidance services:Salaries 1,016,000 1,145,192 1,109,365 Employee benefits 140,720 148,160 149,241 Purchased services - 300 - Supplies and materials 45,685 14,000 8,432

Total guidance services 1,202,405 1,307,652 1,267,038

Health services:Salaries 650,000 680,212 665,752 Employee benefits 101,160 89,356 87,703 Purchased services 135,700 10,500 13,491 Supplies and materials 10,000 9,000 8,371 Non-capitalized equipment - 2,000 1,866

Total health services 896,860 791,068 777,183

56






EXPENDITURES PAID (CONTINUED)Psychological services:

Salaries 710,500$ 740,507$ 730,325$ Employee benefits 97,500 90,240 91,684 Purchased services 3,000 2,500 2,811 Supplies and materials 1,100 800 323

Total psychological services 812,100 834,047 825,143

Other pupil support services:Salaries - 85,160 83,779 Employee benefits - 8,470 8,435 Purchased services - 124,780 121,736 Supplies and materials - 31,089 8,758

Total other pupil support services - 249,499 222,708

Support services - instructional:Improvement of instruction services:

Salaries 878,740 1,230,403 1,120,769 Employee benefits 82,045 144,261 145,496 Purchased services 150,790 297,577 224,277 Supplies and materials 1,767,900 778,412 729,477 Other objects - 1,500 1,400

Total improvement of instructionservices 2,879,475 2,452,153 2,221,419

Educational media services:Salaries 1,516,800 1,662,078 1,659,937 Employee benefits 184,100 205,697 205,947 Purchased services - 12,000 11,651 Supplies and materials 147,000 173,857 169,473

Total educational media services 1,847,900 2,053,632 2,047,008

Assessment and testing:Purchased services - 3,100 2,436 Supplies and materials 225,000 145,000 144,493

Total assessment and testing 225,000 148,100 146,929

57






EXPENDITURES PAID (CONTINUED)Board of Education services:

Purchased services 278,000$ 228,400$ 185,204$ Supplies and materials 21,200 2,000 1,283 Other objects 14,000 11,000 10,784

Total Board of Education services 313,200 241,400 197,271

Executive administration services:Salaries 252,550 295,275 293,949 Employee benefits 119,750 49,755 64,574 Purchased services 517,300 439,400 272,902 Supplies and materials 30,000 50,000 50,542 Other objects - 14,000 7,873 Non-capitalized equipment - 15,000 526

Total executive administration services 919,600 863,430 690,366

Special area administrative services:Salaries - 6,000 6,000 Purchased services - 750 -

Total special area administrativeservices - 6,750 6,000

Support services - school:Office of the Principal services:

Salaries 4,480,997 4,185,980 4,147,058 Employee benefits 922,495 852,752 857,809 Purchased services 10,700 11,000 11,024 Other objects - 14,200 12,520

Total Office of the Principal services 5,414,192 5,063,932 5,028,411

58






EXPENDITURES PAID (CONTINUED)Direction of business support services:

Salaries 337,160$ 59,030$ 61,894$ Employee benefits 69,410 12,660 11,417 Purchased services - 134,610 157,056 Supplies and materials - 600 614 Other objects - 965 905

Total direction of business supportservices 406,570 207,865 231,886

Fiscal services:Salaries - 225,458 224,643 Employee benefits - 38,640 38,640 Purchased services - 10,000 8,642 Supplies and materials - 8,000 6,998 Other objects - 2,900 2,861

Total fiscal services - 284,998 281,784

Food services:Salaries 1,786,200 1,633,683 1,641,235 Employee benefits 20,120 24,840 26,278 Purchased services - 26,100 20,674 Supplies and materials 2,320,000 2,340,500 2,265,933 Other objects - 53,000 57,412 Non-capitalized equipment - 5,000 20,342

Total food services 4,126,320 4,083,123 4,031,874

Internal services:Salaries 111,260 207,667 210,756 Employee benefits 22,700 5,520 15,368 Purchased services 325,000 326,000 300,931 Supplies and materials 15,000 10,800 68,641

Total internal services 473,960 549,987 595,696

59






EXPENDITURES PAID (CONTINUED)Support services - central

Planning, research, development, andevaluation services:

Purchased services -$ 18,000$ 8,000$ Supplies and materials 2,000 3,000 -

Total planning, research, developmentand evaluation services 2,000 21,000 8,000

Information services:Salaries 56,900 56,870 56,869 Employee benefits 5,800 5,520 5,520 Purchased services - 11,600 7,553 Supplies and materials - 1,200 720 Other objects - 100 310

Total information services 62,700 75,290 70,972

Staff services:Salaries 534,505 568,310 564,833 Employee benefits 69,820 92,945 92,949 Purchased services 23,500 109,900 95,196 Supplies and materials 2,000 10,500 9,610 Other objects - 1,000 932 Non-capitalized equipment - 500 -

Total staff services 629,825 783,155 763,520

Data processing services:Salaries 538,375 576,479 551,969 Employee benefits 87,270 78,573 78,417 Purchased services 1,034,000 993,500 393,971 Supplies and materials 1,226,150 1,168,438 1,149,659 Other objects - 200 377

Total data processing services 2,885,795 2,817,190 2,174,393

Other support services:Salaries - 4,000 12,960

Total support services 24,090,402 23,779,921 22,520,006

60






EXPENDITURES PAID (CONTINUED)Community services:

Salaries -$ 179,306$ 129,767$ Employee benefits - 21,560 20,983 Purchased services - 31,621 17,691 Supplies and materials - 23,437 19,516

Total community services - 255,924 187,957

Payments to other districts and governments:Payments for special education programs:

Purchased services 300,000 300,000 300,000 Payments for CTE programs:

Other objects 150,000 309,678 374,648 Other payments to in-state

governmental units:Purchased services - 21,615 23,221 Other objects - - 26,224

Other payments to in-state governmentunits - transfers:

Other objects - 15,000 45,887

Total intergovernmental 450,000 646,293 769,980

Capital outlay:Regular program 54,000 167,073 150,491 Special education 45,000 - - Driver's education program - - 15,849 Executive administration services 250,000 216,000 225,850 Data processing systems 30,000 - 448,724 Food services 20,000 - -

Total capital outlay 399,000 383,073 840,914

Debt service:Debt service - interest on long-term debt:

Other objects 40,000 - 13,689

Total expenditures paid 89,096,022$ 92,840,710$ 106,568,667$

Excess (deficiency) of revenue collected over expenditures paid 1,003,343 (4,142,684) (3,239,058)

61






OTHER FINANCING SOURCES (USES)Proceeds from capital lease obigation -$ -$ 448,724$ Transfers out - - (566,487)

Total other financing sources (uses) - - (117,763)

Excess (deficiency) of revenue collected and other financing sources over expenditures paid andother financing uses 1,003,343$ (4,142,684)$ (3,356,821)

FUND BALANCE (DEFICIT)Beginning of year 7,930,092


62

STATEMENT 6

MCLEAN COUNTY UNIT SCHOOL DISTRICT NO. 5OPERATIONS AND MAINTENANCE ACCOUNT





Property taxes and payments in lieu of taxes 9,914,000$ 10,544,000$ 10,525,305$ Earnings on investments 10,000 10,000 1,228 Other local revenues 210,000 338,403 440,562


EXPENDITURES PAIDSupport services:

Support services - Business:Director of business support services:

Purchased services 20,000 - - Facilities acquisition and construction services:

Purchased services 500,000 341,500 334,094 Operation and maintenance of plant services:

Salaries 4,484,100 4,886,458 4,689,341 Employee benefits 850,000 760,260 701,202 Purchased services 3,475,000 1,610,100 1,424,234 Supplies and materials 600,000 3,565,900 3,045,469

Other objects - 140,600 830 Non-capitalized equipment - 30,300 24,587

9,929,100 11,335,118 10,219,757 Capital outlay - operation and maintenance

of plant services 75,000 29,000 29,000

Total expenditures paid 10,004,100 11,364,118 10,248,757

Excess (deficiency) of revenue collected over expenditures paid 129,900 (471,715) 718,338

OTHER FINANCING USESTransfers out (627,999) (627,999) (627,999)

Excess (deficiency) of revenue collected over expenditures paidand other financing uses (498,099)$ (1,099,714)$ 90,339

FUND BALANCEBeginning of year 336,225


63

STATEMENT 7

MCLEAN COUNTY UNIT SCHOOL DISTRICT NO. 5TORT ACCOUNT





Property taxes and payments in lieu of taxes 2,339,300$ 2,331,300$ 2,314,206$ Earnings on investments - - 4,944 Other local revenues - - 27,234


EXPENDITURES PAIDSupport services - General:

Workers' compensation:Purchased services 400,000$ 500,000$ 683,222$

Unemployment insurance payments:Employee benefits - 80,000 61,597

Risk management and claims services payments:Purchased services 25,000 - -

Judgment and settlements:Other objects - 300,000 199,539

Educational, inspectional, supervisory services related toloss prevention or reduction:Salaries 482,500 170,000 136,242 Employee benefits - 33,600 25,912 Purchased services 365,000 466,700 296,200 Supplies and materials - 12,000 9,240

Legal services:Purchased services 75,000 100,000 102,996

Property insurance (buildings and grounds):Purchased services 560,000 700,000 638,019

Vehicle insurance (transportation):Purchased services 200,000 240,000 199,425


Excess (deficiency) of revenue collected over expenditures paid 231,800$ (271,000)$ (6,008)

FUND BALANCE Beginning of year 2,720,110


64

STATEMENT 8

MCLEAN COUNTY UNIT SCHOOL DISTRICT NO. 5TRANSPORTATION FUND


June 30, 2010

ASSETS

Cash 2,249,547$

LIABILITIES AND FUND BALANCE

LIABILITIESOther liabilities 1,655$ Payroll deductions and withholdings 495 Loans payable 1,520,000

Total liabilities 1,522,150

FUND BALANCEUnreserved - undesignated 727,397

Total fund balance 727,397

TOTAL LIABILITIES AND FUND BALANCE 2,249,547$

65

STATEMENT 9

MCLEAN COUNTY UNIT SCHOOL DISTRICT NO. 5TRANSPORTATION FUND





Property taxes and payments in lieu of taxes 3,965,700$ 3,965,700$ 3,960,535$Transportation fees 2,500 2,500 46,471 Earnings on investments 8,000 8,000 722 Other local sources 10,000 10,000 9,045

Total local sources 3,986,200 3,986,200 4,016,773

State sources:Transportation aid 4,870,100 4,604,820 4,068,357



Support services - business:Pupil transportation service:

Salaries 3,997,000$ 4,511,768$ 4,244,836$Employee benefits 805,250 796,080 785,680 Purchased services 48,000 1,575,252 906,589 Supplies and materials 3,278,000 1,489,000 1,381,777 Other objects - 2,000 1,732 Non-capitalized equipment - 227,933 245,242

8,128,250 8,602,033 7,565,856 Capital outlay - pupil transportation

service 150,000 - 720,196


Excess (deficiency) of revenue collected over expenditures paid 578,050$ (11,013)$ (200,922)



66

STATEMENT 10

MCLEAN COUNTY UNIT SCHOOL DISTRICT NO. 5MUNICIPAL RETIREMENT FUND


June 30, 2010

ASSETS

Cash 1,646,032$ Investments 1,233,283



LIABILITIES

FUND BALANCEReserved for employee retirement system 2,879,315


67

STATEMENT 11

MCLEAN COUNTY UNIT SCHOOL DISTRICT NO. 5MUNICIPAL RETIREMENT FUND




REVENUE COLLECTED

Local sources:Property taxes and payments in

lieu of taxes 3,601,596$ 3,411,187$ 3,488,589$Personal property replacement taxes 153,855 153,855 140,557 Earnings on investments 65,000 65,000 6,133


EXPENDITURES PAID

Current:Instruction:

Employer's share of retirement system,FICA and Medicare 1,343,085$ 1,592,443$ 1,441,623$

Support services:Employer's share of retirement system,

FICA and Medicare 2,572,870 2,897,214 2,547,294 Community services:

Employer's share of retirement system,FICA and Medicare - 9,505 9,105


Excess (deficiency) of revenue collectedover expenditures paid (95,504)$ (869,120)$ (362,743)

FUND BALANCEBeginning of year 3,242,058


68

STATEMENT 12

MCLEAN COUNTY UNIT SCHOOL DISTRICT NO. 5WORKING CASH FUND


June 30, 2010

ASSETS

Cash 8,075,222$


LIABILITIES

FUND BALANCE 8,075,222


69

STATEMENT 13

MCLEAN COUNTY UNIT SCHOOL DISTRICT NO. 5 WORKING CASH FUND




REVENUE COLLECTEDProperty taxes and payments in lieu of taxes 991,440$ 895,342$ 990,584$ Earnings on investments 100,000 100,000 6,801

Total revenue collected 1,091,440 995,342 997,385

EXPENDITURES PAIDCurrent - - -

Excess of revenue collected over expenditures paid 1,091,440$ 995,342$ 997,385



70

STATEMENT 14

MCLEAN COUNTY UNIT SCHOOL DISTRICT NO. 5DEBT SERVICE FUND


June 30, 2010

ASSETS

Cash 8,499,088$ Investments 2,207



LIABILITIES

FUND BALANCEReserved for debt service 8,501,295


71

STATEMENT 15

MCLEAN COUNTY UNIT SCHOOL DISTRICT NO. 5DEBT SERVICE FUND





Property taxes and paymentsin lieu of taxes 15,481,725$ 15,664,761$ 15,802,028$

Earnings on investments 100,000 100,000 20,177


EXPENDITURES PAIDPayments of principal on long-term debt 6,830,000 7,320,000 7,856,813 Interest on long-term debt 9,228,523 10,528,565 10,552,012 Other - other objects 12,000 112,000 6,076


Excess (deficiency) of revenue collected over expenditures

paid (488,798) (2,195,804) (2,592,696)

OTHER FINANCING SOURCESTransfers in - - 1,194,486

Excess (deficiency) of revenuecollected and other financing sources over expenditures paid (488,798)$ (2,195,804)$ (1,398,210)



72

STATEMENT 16

MCLEAN COUNTY UNIT SCHOOL DISTRICT NO. 5CAPITAL PROJECTS FUND


June 30, 2010

ASSETS

Cash 243,250$

Investments 35,731,575 Other current assets 20,000



LIABILITIES -$

FUND BALANCEUnreserved - undesignated 35,994,825


73

STATEMENT 17



Earnings on investments 2,750,000$ 2,750,000$ 2,553,003$ Other local revenues - - 187,788

Total revenue collected 2,750,000$ 2,750,000$ 2,740,791$

EXPENDITURES PAID

Support services:Facilities acquisition and construction services:

Salaries 115,500$ 115,500$ 141,364$ Purchased services 5,336,000 5,336,000 6,504,643 Supplies and materials 1,970,000 1,970,000 4,036,976 Non-capitalized equipment - - 16,005

7,421,500 7,421,500 10,698,988 Capital outlay - facilities acquisition and

construction services 68,000,000 68,000,000 43,458,108


Excess (deficiency) of revenue collected over expenditures paid (72,671,500)$ (72,671,500)$ (51,416,305)


End of year 35,994,825$


MCLEAN COUNTY UNIT SCHOOL DISTRICT NO. 5CAPITAL PROJECTS FUND


74

STATEMENT 18


ASSETS

Cash 460,252$


LIABILITIES

FUND BALANCEUnreserved - undesignated 460,252

TOTAL LIABILITIES AND FUND BALANCE 460,252$

June 30, 2010

FIRE PREVENTION AND SAFETY FUNDSTATEMENT OF ASSETS AND LIABILITIES

ARISING FROM CASH TRANSACTIONS

75

STATEMENT 19

MCLEAN COUNTY UNIT SCHOOL DISTRICT NO. 5FIRE PREVENTION AND SAFETY FUND





Property taxes and payments in lieu of taxes 991,425$ $982,100 990,584$ Earnings on investments 2,000 - 99 Other local revenues 400,000 400,000 400,000



Operation & maintenance of plant services -purchased services 1,386,785 1,480,000 150,775

Capital outlay - operation & maintenance ofplant services - - 1,251,788


Excess (deficiency) of revenue collectedover expenditures paid 6,640$ (97,900)$ (11,880)



76

STATEMENT 20


PROPRIETARY FUNDS - INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF REVENUE RECEIVED,

EXPENSES PAID, AND CHANGES IN NET ASSETS


Self-funded

Workman's

Self-funded Compensation

Insurance Insurance Total

Operating revenue received

District contributions 8,510,303$ 512,493$ 9,022,796$ Employee contributions 1,350,551 - 1,350,551

Total operating revenue received 9,860,854 512,493 10,373,347

Operating expenses disbursed

Claims 6,718,163 527,559 7,245,722 Administrative expenses 2,423,284 - 2,423,284 Bank service charges - 160 160

Total operating expenses disbursed 9,141,447 527,719 9,669,166

Operating income 719,407 (15,226) 704,181

Nonoperating revenues receivedInterest on investments 4,497 - 4,497

Change in net assets 723,904 (15,226) 708,678

Net AssetsBeginning of year 4,165,095 15,226 4,180,321

End of year 4,888,999$ -$ 4,888,999$

77

STATEMENT 21

MCLEAN COUNTY UNIT SCHOOL DISTRICT NO. 5AGENCY FUND - ACTIVITY FUNDS

STATEMENT OF CHANGES IN ASSETS AND LIABILITIES -MODIFIED CASH BASIS


Balance BalanceJune 30, June 30,

2009 Additions Deductions 2010ASSETS

Cash 1,307,783$ 3,012,759$ 2,980,495$ 1,340,047$

Investments 10,303 - 10,303 -

TOTAL ASSETS 1,318,086$ 3,012,759$ 2,990,798$ 1,340,047$

LIABILITIES

Due to activity fund organizations 1,318,086$ 3,012,759$ 2,990,798$ 1,340,047$

78

Due to ROE on October 15thDue to ISBE on November 15thSD/JA10

X School District Joint Agreement

X CASHSchool District/Joint Agreement Number: ACCRUAL Name of Auditing Firm:

County Name: Name of Audit Supervisor:

Name of School District/Joint Agreement: Address:

Address: City: State: Zip Code:

Submit electronic AFR directly to ISBECity: Phone Number: Fax Number:

Email Address: IL Registration Number:

Zip Code: Email Address:

Annual Financial ReportType of Auditor's Report Issued: ISBE Use Only

Qualified X YES NO Are Federal expenditures greater than $500,000?

X Adverse X YES NO Is all A-133 Single Audit Information completed and attached?

Disclaimer X YES NO Were any findings issued?

Reviewed by District Superintendent/Administrator Reviewed by Township Treasurer (Cook County only) Reviewed by Regional Superintendent/Cook ISCName of Township:

District Superintendent/Administrator Name (Type or Print): Township Treasurer Name (type or print) RegionalSuperintendent/Cook ISC Name (Type or Print):

Email Address:

Telephone: Fax Number: Telephone: Fax Number: Telephone: Fax Number:

Signature & Date: Signature & Date: Signature & Date:

* This form is based on 23 Illinois Administrative Code 100, Subtitle A, Chapter I, Subchapter C (Part 100). ISBE Form SD50-35/JA50-60 (06/10)

A-133 Single Audit Status:

[email protected]

Normal Click on the Link to Submit:

[email protected]

309-452-7418

Champaign Filing Status:

McLean County Unit School District No. 5

217-355-9549

066-003320 Send ISBE a File

Certified Public Accountant Information(See instructions on inside of this page.)

Clifton Gunderson LLP

Hope Wheeler

217-351-7400

61821IL

2511 Galen Drive

1809 West Hovey

17-064-0050-26

ILLINOIS STATE BOARD OF EDUCATIONSchool Business Services Division

June 30, 2010

Accounting Basis:

Annual Financial Report *

100 North First Street, Springfield, Illinois 62777-0001217/785-8779

Illinois School District/Joint Agreement

School District/Joint Agreement Information

[email protected]

Dr. Gary Niehaus

61761-4339

Email Address:Email Address:

McLean

309-452-4476

Printed: 11/11/2010{D36FD255-3D53-4BA5-BBD7-9DD1B3A640E8}.xls

1

Independent Auditor’s Report


We have audited and reported separately on the financial statements of the governmental activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of McLean County Unit School District No. 5 (District) as of and for the year ended June 30, 2010, which collectively comprise McLean County Unit School District No. 5’s basic financial statements. The basic financial statements have been audited; however, they are not presented as part of this Annual Financial Report form. The basic financial statements should be read in conjunction with the following auditor’s opinion. Our opinion reads as follows:

We have audited the accompanying financial statements of the governmental activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of McLean County Unit School District 5 (District), as of and for the year ended June 30, 2010, which collectively comprise the District’s basic financial statements as listed in the table of contents. These financial statements are the responsibility of McLean County Unit School District 5’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.

As discussed in Note 1, McLean County Unit School District No. 5 prepares its financial statements on the cash basis, which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position - cash basis of the governmental activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of McLean County Unit School District No. 5 as of June 30, 2010, and respective changes in financial position - cash basis for the year then ended on the basis of accounting described in Note 1.

2

In accordance with Government Auditing Standards, we have also issued our report dated November 1, 2010 on our consideration of McLean County Unit School District No. 5’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.

The Illinois Municipal Retirement - Schedule of Funding Progress, Other Post-Employment Benefits, Schedule of Funding Progress, and the budgetary comparison information are not a required part of the basic financial statements but are supplemental information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplemental information. However, we did not audit the information and express no opinion on it. McLean County Unit School District No. 5 has not presented the Management’s Discussion and Analysis that accounting principles generally accepted in the United States of America require to supplement, although not be part of, the basic statements.

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise McLean County Unit School District No. 5’s basic financial statements. The combining, individual fund financial statements, and supplemental schedules listed in the table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements of McLean County Unit School District No. 5. Such information has been subjected to auditing procedures applied in the audit of the financial statements and, in our opinion, is fairly stated, in all material respects in relation to the financial statements taken as a whole.

The Annual Financial Report, which includes regulatory-based financial statements, was prepared to comply with regulatory provisions prescribed by the Illinois State Board of Education, which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America. They are intended to assure effective legislative and public oversight of school district financing and spending activities of accountable Illinois public school districts. The effects on the financial statements of the variances between these regulatory accounting practices and accounting principles generally accepted in the United States of America, although not reasonably determinable, are presumed to be material.

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the District’s basic financial statements. The accompanying supplementary information on pages 5 through 27 and 32 of this Annual Financial Report form and Notes to the Annual Financial Report, are presented for purposes of additional analysis and are not a required part of the basic financial statements of the District. Such information has been subjected to the auditing procedures applied in our 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.

3

The supplementary data on pages 2 through 4, 28 through 31, and 33 of this Annual Financial Report, the Illinois Municipal Retirement - Analysis of Funding Progress, and the Other Post-Employment Benefits - Schedule of Funding Progress were not audited by us and, accordingly, we do not express an opinion on such data.

This report is intended solely for the information and use of the Board of Education, management of the District, and the Illinois State Board of Education and is not intended to be and should not be used by anyone other than these specified parties.


MCLEAN COUNTY UNIT SCHOOL DISTRICT NO. 5NOTES TO ANNUAL FINANCIAL REPORT

June 30, 2010

4

NOTE 1 - DESCRIPTION OF ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

McLean County Unit School District No. 5 (District) is a school district serving students in Normal, Illinois and the surrounding area. Revenues are substantially generated as a result of taxes assessed and allocated to the District and grants received from other state and federal governmental agencies. The District’s revenues are, therefore, primarily dependent upon the availability of funds at the state and federal level and the economy within its territorial boundaries. Industry within the territorial area is primarily retail and agricultural.

The following is a summary of the more significant accounting policies which the District applies:

(a) Annual Financial Report

The Annual Financial Report is a reporting format in accordance with the regulatory provisionsprescribed by the Illinois State Board of Education. Such financial information includes only the individual funds and account group financial statements as promulgated within the format of the prescribed form.

The financial statements in this prescribed format are not intended to, and do not present fairly, in conformity with accounting principles generally accepted in the United States of America, the respective financial position of the governmental activities, each major fund, and the remaining fund information of McLean County Unit School District No. 5 as of June 30, 2010 or 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.

The Annual Financial Report and Notes to the Annual Financial Report information is presented for additional analysis in relation to the financial statements that collectively comprise the basic financial statements of McLean County Unit School District No. 5.

(b) Financial Reporting Entity

In evaluating how to define the government, for financial reporting purposes, management has considered all potential component units. The decision to include a potential component unit in the reporting entity was made by applying the criteria set forth in the Codification of Government Accounting and Financial Reporting Standards, Section 2100. The financial reporting entity consists of (a) the primary government, McLean County Unit School District No. 5, which has a separately elected governing body, is legally separate and fiscally independent of other state and local governments, (b) organizations for which the primary government is financially accountable, and (c) other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity’s financial statements to be misleading or incomplete.

A certain joint agreement has been determined to be part of the reporting entity because the District exercises significant influence over the assets, operations, and management of the joint agreements. However, the joint agreement is required to be separately audited and reported to the Illinois State Board of Education. This Annual Financial Report therefore represents only the individual funds and account group financial statements of the primary government, McLean County Unit School District No. 5.


June 30, 2010

5


(b) Financial Reporting Entity (Continued)

The joint agreement consists of the Mackinaw Valley Special Education Association. The financial information for the joint agreement can be obtained from the District’s administrative office located at 1809 W. Hovey, Normal, IL 61761-4339. This is a component unit of the District and is included on the separately issued basic financial statements of the District.

There are no other component units of McLean County Unit School District No. 5 nor is McLean County Unit School District No. 5 dependent on any other entity.

(c) Basis of Accounting - Fund Accounting

Basis of accounting defines when revenues and expenditures are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of their recognition.

The District maintains its accounting records for all funds and account groups on the cash basis of accounting. Accordingly, revenue is recorded when the cash is received and expenditures are recorded when paid. Only assets representing a right to receive cash arising from a previous payment of cash are recorded as assets of a fund. In the same manner, only liabilities resulting from previous cash transactions (other than proceeds of a bond issued) are recorded as liabilities of a particular fund.

(d) Basis of Presentation - Fund Accounting

The accounts of the District are organized and presented within the Annual Financial Report on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund balance, cash receipts (revenue received) and disbursements (expenditures paid). District resources are allocated and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

The funds and account groups are presented in the Annual Financial Report as follows:

Funds:

Educational - The Educational Fund is the general operating fund of the District. All receipts that are not allocated by law or contractual agreement to some other fund are accounted for in this fund. This Fund is used for regular operations, including educational costs, textbook costs, the food service department and certain other special programs, including many federal and state programs.

Operations and Maintenance - The Operations and Maintenance Fund includes costsof maintaining, improving, or repairing school buildings and property.


June 30, 2010

6


(d) Basis of Presentation - Fund Accounting (Continued)

Funds: (Continued)

Debt Services - The Debt Services Fund is used to account for the accumulation of resources for payment of general long-term bonded debt principal, interest, and related costs.

Transportation - The Transportation Fund pays for the costs of transportation of pupils.

Municipal Retirement/Social Security - The Municipal Retirement/Social Security Fund is used to account for the specific taxes levied to pay for employer social security contributions and retirement benefits for noncertified employees and employer Medicare contributions for qualifying employees.

Capital Projects - The Capital Projects Fund is used to account for financial resources for the construction of major capital facilities.

Working Cash - The Working Cash Fund is used to account for financial resources held by the District which may be temporarily loaned to other funds.

Tort - The Tort Fund is used to account for resources to fund, and costs related to, tort immunity and tort judgment purposes.

Fire Prevention and Safety - The Fire Prevention and Safety Fund is used to account for financial resources to alter and/or reconstruct existing facilities to meet fire prevention and safety standards, to meet environmental regulations, to reduce energy consumption, and for security purposes.

Fiduciary - These funds are used to account for assets held by the District in a trustee capacity or as an agent for individuals, private organizations, other governments or other funds.

The Trust Funds (Self-Insurance Health Benefit Fund, Workman’s Compensation Self-Insurance Fund, and Flexible Benefit Plan) are used to account for the District’s self-insured employee health plan and the workman’s compensation plan.

Agency Funds - Student Activity Funds - The Student Activity Funds are custodial in nature (assets equal liabilities), do not involve the measurement of the results of operations, and are treated as Agency Funds.


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(d) Basis of Presentation - Fund Accounting (Continued)

Account Groups:

General Fixed Assets - Fixed assets are used in operations (general fixed assets) are accounted for in the General Fixed Assets Account Group. Purchases/constructionof buildings/equipment are recorded as capital outlay disbursements of the various funds and as additions to the General Fixed Assets Account Group.

General Long-term Debt - Long-term liabilities are accounted for in the General Long-term Debt Account Group.

(e) Budgets and Budgetary Accounting


1. Prior to July 1, a tentative operating budget is submitted to the Board of Education for the fiscal year commencing on the immediately previous July 1. The tentative operating budget includes proposed expenditures and the means of financing them.



4. The Board of Education is authorized to transfer up to 10 percent of the total budget between departments within any fund. Any revisions that alter the total expenditures of any fund must be amended by the same procedure as provided for the original budget. The legal level of control is the fund level.


(f) Common Cash Account

Separate bank accounts are not maintained for all District funds. Instead, various funds maintain their cash balances in a common checking account. Accounting records are maintained to show the portion of the common cash balance attributable to each participating fund.


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(g) Deposits and Investments

According to the District’s investment policy, the District is allowed to invest in securities as authorized by the Illinois Compiled Statutes, which include obligations of the U.S. Treasury and its agencies; interest-bearing savings; certificates of deposit or time deposits; commercial paper; money market mutual funds; short term discount obligations of the Federal NationalMortgage Association; dividend-bearing share accounts of a credit union; Public Treasurer’s Investment Pool; Illinois School District Liquid Asset Fund Plus and repurchase agreements.

(h) Property Taxes

Property taxes attach as an enforceable lien on property as of January 1. The District must file its tax levy ordinance by the last Tuesday in December of each year. The District’s property tax is levied each year on all taxable real property located in the District. Property taxes are payable in two installments in approximately June and September at the County Collector’s office. Sale of taxes on any uncollected amounts is prior to November 30 or shortly thereafter by the County Collector’s office. Final distribution to all taxing bodies is usually made prior to November 30 by the County Collector’s office. Taxes, as other revenues of the District, are recognized on the cash basis of accounting and are, therefore, recognized as received.

(i) Land, Buildings, and Equipment

Capital assets, which include land, land improvements, buildings and improvements, and equipment, have been acquired for general governmental purposes. Assets purchased are recorded as expenditures in the individual funds and capitalized at costs in the general fixed assets account group. Donated fixed assets are valued at their estimated fair value on the date donated.

All buildings, improvements, and equipment are depreciated using the straight-line method over the following estimated useful lives:

Improvements other than building 20 yearsBuildings 50 yearsEquipment 5-10 years

(j) Long-term Obligations

Long-term obligations are reported as liabilities of the General Long-Term Debt Account Group.

Proceeds from issuance of long-term debt are reflected as other financing sources within the individual funds at the date of issuance of debt or upon receipt of the proceeds. Debt service expenditures paid are recorded when the payment is made as expenditures of the fund.


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(k) Fund Equity Restrictions and Designations

Reservations of fund equity are for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose.

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.

(l) Adoption of New Accounting Standards

As further discussed in Note 13, effective July 1, 2009, the District adopted Governmental Accounting Standards Board (GASB) Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions. This statement requires a systematic measurement of other postemployment benefit (OPEB) expense over a period that approximates employees’ years of service. The Statement also requires the information about actuarial accrued liabilities associated with OPEB and whether and to what extent progress is being made in funding the plan.

(m) Use of Estimates

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

NOTE 2 - DEPOSITS AND INVESTMENTS

Custodial Credit Risk - Deposits

Custodial credit risk for is the risk that, in the event of a bank failure, the District’s deposits may not be returned to it. The District’s investment policy requires that all amounts deposited or invested with financial institutions in excess of any insurance limit be collateralized in accordance with the Public Fund Investment Act 30 ILCS2351.

The market value of the pledged securities should equal or exceed the portion of the deposit requiring collateralization.

As of June 30, 2010, none of the District’s bank balances of $23,336,843 was exposed to custodial credit risk.

The carrying amount of these deposits, excluding petty cash of $2,430, is $22,052,565 as of June 30, 2010.


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NOTE 2 - DEPOSITS AND INVESTMENTS (CONTINUED)

At June 30, 2010, the District had the following investments and maturities:

InvestmentCarrying MaturitiesAmount (In Years)

Investment Type (Cost) Less Than One

Sweep Accounts $ 40,614,645 $ 40,614,645Money Market $ 23,330,413 $ 23,330,413Federal Farm Credit Bank Note $ 2,397,862 $ 2,397,862

Interest Rate Risk

Interest rate risk is the risk that the value of investments will decrease as a result of a rise in interest rates. The District’s investment policy does not limit investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates.

Custodial Credit Risk

For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the District will not be able to recover the value of the investments or collateral securities that are in the possession of an outside party. Regarding the District’s investments in the sweep accounts, all of the underlying securities are held by the financial institution, not in the name of the District.

Certificates of deposit are presented as investments on the Statement of Assets and Liabilities Arising from Cash Transactions, but are considered to be deposits when assessing custodial credit risk.

The District’s investments in the Illinois School District Liquid Asset Fund Plus - Liquid Class and Max Class were rated AAAm by Standard & Poor’s Ratings. The Federal Credit Bank Note was rated AAA by Standard & Poor’s Ratings.

The following is a reconciliation between the information presented above and cash and investments as presented on the Statement of Assets and Liabilities Arising from Cash Transactions:

Carrying amount of (see above):Petty Cash $ 2,430Deposits 22,052,565Investments 66,342,920

$88,397,915

Cash and cash equivalents $49,807,047Investments 38,590,868

$88,397,915


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NOTE 3 - GENERAL FIXED ASSET ACCOUNT GROUP

Capital asset activity for the year ended June 30, 2010 was as follows:

Beginning EndingBalance Increases Decreases Balance

Governmental activities:Capital assets not being

depreciatedLand $ 4,082,669 $ - $ - $ 4,082,669Construction in progress - 40,221,016 - 40,221,016

Total capital assets not beingdepreciated 4,082,669 40,221,016 - 44,303,685

Capital assets being depreciated:Improvements other than

buildings 320,389 - 1,084 319,305Buildings 164,234,477 2,260,480 - 166,494,957Equipment:

10 - year 13,283,814 2,435,993 2,402,700 13,317,1075 - year 10,168,627 1,382,517 6,062,943 5,488,201

Total capital assets beingdepreciated 188,007,307 6,078,990 8,466,727 185,619,570

Total capital assets 192,089,976 46,300,006 8,466,727 229,923,255

Less accumulated depreciationfor:Improvements other than

buildings 78,227 15,965 1,084 93,108Buildings 38,779,216 3,329,899 - 42,109,11510-year equipment 8,410,189 1,331,711 2,402,700 7,339,2005-year equipment 8,201,378 951,229 6,062,943 3,089,664

Total accumulated depreciation 55,469,010 5,628,804 8,466,727 52,631,087

Governmental activities capital assets, net $136,620,966 $ 40,671,202 $ - $177,292,168


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NOTE 4 - GENERAL LONG-TERM DEBT ACCOUNT GROUP

The following is a summary of long-term debt activity of the District for the year ended June 30, 2010:

DescriptionBalance

July 1, 2009 Additions DeductionsBalance

June 30, 2010

Due InLess ThanOne Year

General Obligation Bonds:1998A Building Bonds Series $ 5,085,000 $ - $ 4,820,000 $ 265,000 $ 265,0002000 School Series 26,320,000 - - 26,320,000 4,740,0002005 Refunding Bonds 61,625,000 - 490,000 61,135,000 1,260,0002008 School Bond Series 82,260,000 - 1,630,000 80,630,000 565,0002009 School Bond Series 31,700,000 - - 31,700,000 - Total General Obligation

Bonds206,990,000 - 6,940,000 200,050,000 6,830,000

Lease Certificates:1999 Lease Certificates 210,000 - 210,000 - - 2002 Lease Certificates 2,855,000 - 150,000 2,705,000 160,0002009 Lease Certificates 3,195,000 - 20,000 3,175,000 265,000Total Lease Certificates 6,260,000 - 380,000 5,880,000 425,000

Total $213,250,000 $ - $ 7,320,000 $205,930,000 $ 7,255,000

Bonded Indebtedness

Bonded indebtedness is reflected in the General Long-Term Debt Account Group. Current requirements for principal and interest expenditures are payable solely from future revenues ofthe Debt Service Fund which consists principally of property taxes collected by the District and interest earnings.

The General Obligation School Bonds, Series 1998A are dated June 1, 1998, with principal due annually on December 1, commencing on December 1, 1998. Interest is due semi-annually on June 1 and December 1, with an interest rate on the remaining bonds at 4.70 percent. Original issue of $21,930,000. Final payment due December 1, 2010.

The General Obligation School Bonds, Series 2000 are dated June 1, 2000, with principal due annually on December 1, commencing on December 2002. Interest is due semi-annually on December 1 and June 1, with an interest rate on the remaining bonds of 7.375 percent. Original issue of $92,610,000. A portion of the bonds were advance funded with proceeds of the General Obligation Refunding School Bonds, Series 2005. Final payment due December 1, 2011.

The General Obligation Refunding School Bonds, Series 2005 are dated February 1, 2005, with principal due annually on December 1, commencing on December 1, 2005. Interest is due semi-annually on June 1 and December 1, with an interest rate on the remaining bonds ranging between 3 and 4 percent. Original issue of $64,200,000. Final payment due December 1, 2017.


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NOTE 4 - GENERAL LONG-TERM DEBT ACCOUNT GROUP (CONTINUED)

Bonded Indebtedness (Continued)

The General Obligation School Bonds, Series 2008 are dated April 28, 2008, with principal due annually on December 1, commencing December 1, 2008. Interest is due semi-annually on June 1 and December 1, with an interest rate on the remaining bonds ranging between 3.25 and 5.50 percent. Original issue of $82,260,000. Final payment due December 1, 2023.

The General Obligation School Bonds, Series 2009 are dated March 10, 2009, with principal due annually on December 1, commencing December 1, 2018. Interest is due semi-annually on December 1 and June 1, with an interest rate on the remaining payments ranging between 4 and 5 percent. Original issue of $31,700,000. Final payment due December 1, 2020.

Lease Purchase Obligations

Lease purchase obligations of the District are reflected in the General Long-Term Debt Account Group. At June 30, 2010, the principal balance of the following lease purchase obligations was $5,880,000. Lease purchase obligations are accounted for in the Education, Operations and Maintenance and Transportation Funds.

The original issue of $3,500,000 of lease certificates dated September 1, 2002, provides for serial retirement of principal on December 1 and interest payable on December 1 and June 1 of each year at 3.75% - 5.25%. At June 30, 2010, there was principal outstanding in the amount of $2,705,000.

The original issue of $3,195,000 of lease certificates dated March 10, 2009, provides for serial retirement of principal on December 1 and interest payable on December 1 and June 1 of each year at 2.00% - 4.00%. At June 30, 2010, there was principal outstanding in the amount of $3,175,000.


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The annual debt service requirements of general obligation bonds and leases are as follows:

Bonds Leases Certificates Total TotalPrincipal Interest Principal Interest Principal Interest

2011 $ 6,830,000 $ 9,573,665 $ 425,000 $ 206,695 $ 7,2555,000 $ 9,780,3602012 8,280,000 9,115,078 445,000 192,633 8,725,000 9,307,7112013 9,780,000 8,671,928 465,000 176,420 10,245,000 8,848,3482014 11,300,000 8,266,321 485,000 157,957 11,785,000 8,424,2782015 12,975,000 7,778,224 510,000 140,458 13,485,000 7,918,6822016-2020 77,435,000 28,953,098 2,960,000 402,954 80,395,000 29,356,0522021-2024 73,450,000 8,245,638 590,000 24,000 74,040,000 8,269,638

$ 200,050,000 $ 80,603,952 $ 5,880,000 $ 1,301,117 $ 205,930,000 $ 81,905,069

Debt has been defeased as follows:

A portion of the proceeds received from the General Obligation bond issued dated February 1, 2005, was deposited into an escrow account to meet the future principal and interest payments required for the bond issues dated June 1, 2000 ($63,110,000 defeased). The escrow account had a balance as of June 30, 2010 of $65,053,864.

A portion of the proceeds received from the General Obligation bond issued dated June 1, 2000, was deposited into an escrow account to meet the future principal and interest payments required for the bond issues dated December 1, 1986, January 1, 1994, and January 1, 1995($6,100,000 defeased). The balances of these bonds were defeased and the escrow account balance as of June 30, 2010 was $5,275,807.

The balance of the escrow accounts have been excluded from the fund balance of the Debt Service Fund in these financial statements. The unpaid principal balances of the defeased debt is excluded from the Long-Term Debt Group of Accounts in these financial statements.

Capital Lease Payable

Changes in capital lease payable for the year ended June 30, 2010 are summarized as follows:

Balance at June 30, 2009 $ 1,779,981Additions 448,724Payments (1,622,773)Balance at June 30, 2010 605,932Less current portion (221,579)Long-term portion $ 384,353


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Capital Lease Payable (Continued)

The District has two outstanding agreements to lease computer equipment under capital lease arrangements. Annual collective total payments ranging from $9,186 to $233,345, including interest at 4.156 and 6.48 percent, and are due monthly and annual through August 2012.

Following is a schedule of the future minimum lease payment and the present value of future minimum lease payments under the capital lease at June 30, 2010:

Years ending June 30:2011 $ 254,9572012 254,9572013 160,194

670,108Less amount representing interest (64,176)Present value of net minimum lease payments $ 605,932

Legal Debt Limit

Section 5/19-1 of the Illinois School Code limits the amount of qualifying debt of the District to 13.8% of the latest equalized assessed value.

The estimated legal debt margin of the District at June 30, 2010, was calculated as follows:

Legal Debt Limit $ 277,237,706Less Qualifying Debt 206,535,932Legal Debt Margin $ 70,701,774

NOTE 5 - SHORT-TERM FINANCING

During the fiscal year ended June 30, 2010, the District authorized the issuance of a$23,000,000 Tax Anticipation Promissory Note with Commerce Bank to fund expenses in anticipation of collection of real estate taxes. At June 30, 2010, $17,670,000 was borrowed and outstanding against the note.

NOTE 6 - INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS

The following interfund loans were made and repaid during the fiscal year ended June 30, 2010:

Due To Due FromBalance

July 1, 2009 Loans Made Loans Repaid

BalanceJune 30,

2010

Transportation Education $ 520,000 $ - $ 520,000 $ -

Interfund loans were made to meet current operating expense obligations.


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NOTE 6 - INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS (CONTINUED)

The District also transferred $627,999 from the Operations and Maintenance Fund and $566,487 from the Educational Fund to the Debt Service Fund to make capital lease payments.

NOTE 7 - PROPERTY TAXES

Property taxes attach as an enforceable lien on property as of January 1. Taxes are levied on or before the last Tuesday in December annually. Applicable current year (2009 and 2008levies) tax rates are as follows (per $100 of assessed valuation):

2009 Levy 2008 Levy Maximum

Educational 2.70011 2.63546 2.72000Operations and Maintenance 0.49634 0.50000 0.50000Debt Service 0.81652 0.77272 NoneTransportation 0.19854 0.20000 0.20000Municipal Retirement 0.07345 0.06688 NoneSocial Security 0.10502 0.10557 NoneTort Immunity 0.11425 0.11869 NoneSpecial Education 0.03974 0.04000 0.04000Working Cash 0.04968 0.05000 0.05000Fire Prevention and Safety 0.04968 0.05000 0.05000Leasing 0.04968 0.05000 0.05000Prior Year Adjustment (0.00012) 0.00000 None

4.69289 4.58932

NOTE 8 - SPECIAL TAX LEVIES AND RESTRICTED EQUITY

A reserve of $4,888,999 has been accumulated for self-insurance costs for employee health benefits in the Self-Funded Insurance Fund, which is recorded as an Expendable Trust Fund in these financial statements.

A reserve of $154,941 has been accumulated in the Flexible Benefit Plan Fund, which is recorded as an Agency Fund in these financial statements.

Cash receipts and the related cash disbursements of the Special Education restricted tax levy are accounted for in the Educational Fund. Expenditures disbursed exceeded revenue received in both funds resulting in no restricted fund balances as of June 30, 2010 for this purpose.


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NOTE 8 - SPECIAL TAX LEVIES AND RESTRICTED EQUITY (CONTINUED)

Cash receipts and the related cash disbursements of the Facility Leasing restricted tax levy are accounted for in the Education and Operations and Maintenance Funds. Expenditures disbursed exceeded revenue received in both funds resulting in no restricted fund balances as of June 30, 2010 for this purpose.

Proceeds from federal, state, and flow-through mini grants and the related expenditures have been included in the Educational Fund. At June 30, 2010, revenue received from federal, state, and flow-through mini-grants exceeded the expenditures disbursed for those specific purposes in the Educational Fund, resulting in a restricted balance of $173,539.

Receipts and related disbursements of the tort tax levy are accounted for in the tort fund. The fund’s equity, the excess of cumulative receipts over cumulative disbursements, is restricted for future qualified tort disbursements.

NOTE 9 - OTHER REQUIRED INDIVIDUAL FUND DISCLOSURES

Generally accepted accounting principles require disclosure of certain information concerning individual funds including:




Debt Service Fund $17,960,565 $18,414,901 $ 454,336

b. Deficit fund balances of individual funds. As of June 30, 2010, there were no funds with a deficit fund balance.

c. Individual fund interfund balances. As of June 30, 2010, there were no interfund balances.

NOTE 10 - SELF-INSURANCE PLANS

Unemployment Coverage

All employees of the District are covered under the State of Illinois Unemployment Insurance Act. The District elected to be self-insured, and therefore, is liable to the State for any payments made to an unemployed worker claiming benefits.


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NOTE 10 - SELF-INSURANCE PLANS (CONTINUED)

Medical Coverage

The District is self-insured for medical coverage, which is provided to school personnel. Blue Cross/Blue Shield administers claims for a fixed fee per enrolled employee. The District is responsible for the payment of claims up to annual levels of $175,000 per employee. The point of attachment for aggregate stop-loss coverage under the plan is $9,617,251. The District purchases commercial insurance for all other risks of loss. Settled claims have not exceeded this commercial coverage in the past three fiscal years.

At the beginning of each fiscal year, the District determines the amount of funds needed to operate the plan. This estimated total cost is used to develop standard unit charges for employees and for dependents covered under the plan.

The District has established a separate Self-Insurance Fund (Trust Fund) to account for the operation of this self-insurance plan. District contributions to the fund are made on the basis of 100% of the charges for employee coverage. Through payroll deductions, the employees are responsible for payment of the entire charges related to coverage of their dependents.

Claims paid were approximately $9,141,000 for the fiscal year ended June 30, 2010.

Workman’s Compensation Coverage

The District established a self-insured plan for workman’s compensation claims for District employees. The District has accounts for the plan in the Workman’s Compensation Self-Insurance Fund (Trust Fund). Cannon Cochran Management Services, Inc. administers the claims paying process. The District mitigates its risk by purchasing an insurance policy for specific and aggregate excess workers compensation and employers liability indemnity. The policy has a specific limit per each accident of $350,000, a specific limit per each employee for disease of $350,000, and an aggregate limit of $2,000,000. District contributions to the fund are made on the basis of 100% of the charges incurred under the stop-loss limits.

NOTE 11 - CONTINGENCIES

The District has received funding from state and federal grants in the current and prior years that are subject to audits by the granting agencies. The school board believes any adjustments that may arise from these audits will be insignificant to District operations.

There are several lawsuits pending against the District for various reasons. The outcome and eventual liability of the District, if any, in these cases are not known at this time and, accordingly, no specific provisions for these lawsuits are included in the financial statements. However, based upon past experience, management believes that insurance coverage maintained by the District is sufficient to cover any potential claims.


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NOTE 12 - RETIREMENT COMMITMENTS

The retirement fund commitments for McLean County Unit School District No. 5 and Mackinaw Valley Special Education Association are not separable. Combined information for the retirement fund commitments is disclosed below.

Teachers’ Retirement System of the State of Illinois

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 primary responsibility for the funding of the plan, but contributions from participating employers and members are also required. The TRS Board of Trustees is responsible for the system’s administration.

TRS members include all active nonannuitants who are employed by a TRS-covered employer to provide services for which teacher certification is required. The active member contribution rate through June 30, 2010 was 9.4 percent of creditable earnings. These contributions, which may be paid on behalf of employees by the employer, are submitted to TRS by the employer. The active member contribution rate was also 9.4 percent for the years ended June 30, 2009and 2008.

The State of Illinois makes contributions directly to TRS on behalf of the District’s TRS-covered employees.

On-behalf Contributions. The State of Illinois makes employer pension contributions on behalf of the District. For the year ended June 30, 2010, the State of Illinois contributions were based on 23.38 percent of creditable earnings not paid from federal funds, and the District recognized revenue received and expenditures paid of $14,205,702 in pension contributions that the State of Illinois paid directly to TRS. For the years ended June 30, 2009 and 2008, the State of Illinois contribution rates as percentages of creditable earnings were 17.08 ($9,475,407) and 13.11 percent ($7,012,600), respectively.

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

a) 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, 2010 were $351,390. Contributions for the years ending June 30, 2009and 2008 were $333,649 and $310,245, respectively.

b) Federal and Trust Fund Contributions. When TRS members are paid from federal andspecial trust funds administered by the District, there is a statutory requirement for the District to pay an employer contribution from those funds. Under a policy adopted by the TRS Board of Trustees that was first effective in the fiscal year ended June 30, 2006, employer contributions for employees paid from federal and trust funds will be the same as the state contribution rate to TRS.


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For the year ended June 30, 2010, the employer pension contribution was 23.38 percent of salaries paid from federal and trust funds. For the years ended June 30, 2009 and 2008, the employer pension contribution was 17.08 and 13.11 percent of salaries paid from federal and special trust funds, respectively. For the year ended June 30, 2010, salaries totaling $2,945,807 were paid from federal and trust funds that required employer contributions of $688,730. For the years ended June 30, 2009 and 2008, required District contributions were $349,974 and $310,311, respectively.

c) Early Retirement Option. The District is also required to make one-time employer contributions to TRS for members retiring under the Early Retirement Option (ERO). The payments vary depending on the age and salary of the member.

Public Act 94-0004 made changes in the ERO program that were in effect for all ERO retirements in fiscal years 2008 through 2010. The Act increased member and employer contributions and eliminated the waiver of member and employer ERO contributions that had been in effect for members with 34 years of service.

Under the current ERO, the maximum employer contribution is 117.5 percent and applies when the member is age 55 at retirement.

For the year ended June 30, 2010, the District paid $113,705 to TRS for employer contributions under the ERO program. For the years ended June 30, 2009 and June 30, 2008, the District paid $61,618 and $43,177 in employer ERO contributions, respectively.

Salary Increases Over Six Percent and Excess Sick Leave

Public Act 94-0004 added two new 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, 2010, the District paid $39,151 to TRS for employer contributions due on salary increases in excess of 6 percent. For the years ended June 30, 2009, and 2008, the District paid $15,087 and $0, respectively, to TRS for employer contributions due on salary increases in excess of 6 percent.

If an employer grants sick leave days in excess of the normal annual allotment and those days are used as TRS service credit, the employer makes a contribution to TRS. The contribution is based on the number of excess sick leave days used as service credit, the highest salary used to calculate final average salary, and the TRS total normal cost rate (18.55 percent of salary during the year ended June 30, 2010).


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For the year ended June 30, 2010 the District made no payment to TRS for sick leave days granted in the excess of normal annual allotment. For the years ended June 30, 2009 and June 30, 2008, the District paid $682 and $3,097, in employer contributions granted for sick leave days, respectively.

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, 2009. The report for the year ended June 30, 2010 is expected to be available in late 2010.

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, Illinois 62794-9253. The most current report is also available on the TRS web site at trs.illinois.gov.

THIS Fund Employer Contributions

The District (employer) 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, 2010. State of Illinois contributions were $510,384, and the District recognized revenue and expenditures of this amount during the year.


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THIS Fund Employer Contributions (Continued)

On Behalf Contributions to THIS Fund (Continued)

State contributions intended to match active member contributions during the years ended June 30, 2009 and 2008 were also 0.84 percent of pay. State contributions on behalf of district employees were $466,004 and $449,320, respectively.

Employer Contributions to THIS Fund

The employer (District) also makes contributions to THIS Fund. The employer THIS Fund contribution was 0.63 percent during the years ended June 30, 2010, June 30, 2009, and June 30, 2008. For the year ended June 30, 2010, the District paid $382,788 to the THIS Fund. For the years ended June 30, 2009 and June 30, 2008, the District paid $362,412 and $336,990 to the THIS Fund, respectively, 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 Avenue, 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, postretirement increases, and death benefits to plan members and beneficiaries. The District plan is affiliated with the Illinois Municipal Retirement Fund (IMRF), an agent multi-employer plan. Benefit provisions are established by statute and may only be changed by the General Assembly of the State of Illinois. IMRF issues a publicly available financial report that includes financial statements and required supplementary information. The report may be obtained on-line at www.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 require employers to contribute the amount necessary, in addition to member contributions, to finance the retirement coverage of its own employees. The employer contribution rate for calendar year 2009 was 9.59 percent of annual covered payroll. The employer 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.

www.imrf.org.


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Illinois Municipal Retirement Fund (Continued)

Annual Pension Cost

For the year ending December 31, 2009, the District’s annual pension cost of $1,602,139 for the regular plan was equal to the District’s required and actual contributions.

Three-Year Trend Information for the Regular Plan

Fiscal Annual Percentage NetYear Pension of APC Pension

Ending Cost (APC) Contributed Obligation

December 31, 2009 $1,602,139 100% $0December 31, 2008 1,480,593 100 0December 31, 2007 1,390,884 100 0

The required contribution for 2009 was determined as part of the December 31, 2007 actuarial valuation using the entry age normal actuarial cost method. The actuarial assumptions at December 31, 2007 included (a) 7.50 percent investment rate of return (net of administrative and direct investment expenses), (b) projected salary increases of 4.00 percent per year, attributable to inflation, (c) additional projected salary increases ranging from 0.4 to 10.0percent 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 unfunded 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 23 years.

Funded Status and Funding Progress

As of December 31, 2009 the most recent actuarial valuation date, the regular plan was funded 74.06 percent. The actuarial accrued liability for benefits was $30,438,911 and the actuarial value of assets was $22,542,799 resulting in an underfunded actuarial accrued liability (UAAL) of $7,896,112. The covered payroll (annual payroll of active employees covered by the plan) was $16,706,350 and the ratio of the UAAL to covered payroll was 47percent. In conjunction with the December 2009 actuarial valuation the market value of investments was determined using techniques that spread the effect of short-term volatility in the market value of investments over a five-year period with a 20 percent corridor between the actuarial and market value of assets. In 2010, the unfunded actuarial accrued liability is being amortized on a level percentage of projected payroll on an open 30 year basis.


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The schedule of funding progress, presented as Required Supplemental Information (RSI)following the notes to financial statements, presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. The schedule of funding progress includes information from Mackinaw Valley Special Education Association, a joint agreement administered by the District. Separate information regarding the funding progress of the joint agreement is not available.

Other Retirement Incentives

For the duration of the current employment agreement, qualifying teachers of the District who have completed ten years or more of creditable service with the school district, who have contributed to Illinois Teacher’s Retirement System for twenty years, who are at least fifty-five years of age, and whose retirement will not result in a penalty to the District, shall be eligible for the following retirement incentive:

1. If the Board is given irrevocable notice of retirement by May 1st three years prior to the year of retirement, the Board shall pay a six percent retirement incentive for each remaining year of service.

2. If the Board is given irrevocable notice of retirement by May 1st two years prior to the year of retirement, the Board shall pay a six percent retirement incentive for each remaining year of service.

3. If the Board is given irrevocable notice of retirement by May 1st one year prior to the year of retirement, the Board shall pay a six percent retirement incentive for each remaining year of service.

As of June 30, 2010, the District was obligated for $364,802 under this retirement incentive.


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NOTE 13 - OTHER POSTEMPLOYMENT BENEFITS

The District implemented Governmental Accounting Standards Board Statement (GASB) No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions, effective July 1, 2009. This statement requires the costs of postemployment benefits other than pension benefits to be recognized over a period that approximates an employee’s years of service. Implementation of this statement results in a liability of $24,912. Additional disclosures required by this statement are included below.

a. Plan Description

In addition to providing the pension benefits described in Note 12, the District provides postemployment health care benefits (OPEB) for retired employees through a single employer defined benefit plan (Retiree Healthcare Program). The benefits, benefit levels, employee contributions and employer contributions are governed by the District and can be amended by the District through its personnel manual and union contracts. The plan is not accounted for as a trust fund, as an irrevocable trust has not been established to account for the plan. The plan does not issue a separate report.

b. Benefits Provided

The District provides limited health care insurance coverage for its eligible retired employees in accordance with Illinois statutes, which creates an implicit subsidy of retiree health care coverage. To be eligible for benefits, an employee must qualify for retirement under one of the District’s retirement plans. Upon a retiree reaching age 65 years of age, Medicare becomes the primary insurer.

c. Membership

The District’s Retiree Healthcare Program includes two employee groups: those qualifying for Illinois Municipal Retirement and Teachers’ Retirement System of the State of Illinois, which are the same as those used for the pension plan.

At June 30, 2010, membership consisted of:

Retirees and beneficiaries currently receiving benefits 21Terminated employees entitled to benefits but not yet receiving them 0Active vested plan members 611Active nonvested plan members 686

Total 1,318

Participating employers 1

d. Funding Policy

The District is not required to and currently does not advance fund the cost of benefits that will become due and payable in the future. Active employees do not contribute to the plan until retirement.


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e. Annual OPEB Costs and Net OPEB Obligation

The District’s annual other postemployment benefit (OPEB) cost is calculated based on the annual required contribution (ARC) of the District, an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. The ARC is the periodic required contribution to fund the postemployment health care benefits of both active and retired employees, calculated in accordance with GASB Statement No. 45. It includes both the value of benefits earned during the year (normal cost) and an amortization of the unfunded actuarial accrued liability. Although there is no requirement to make contributions equal to the ARC, it serves as the starting point for determining the annual OPEB cost.

The District first had an actuarial valuation performed for the plan as of July 1, 2009 to determine the funded status of the plan as of that date as well as the employer’s annual required contribution (ARC) for the fiscal year ended June 30, 2010. The annual OPEB cost is the cost of the postemployment health care benefits each fiscal year. If there is no net OPEB obligation, then the annual OPEB cost is equal to the ARC. However, if there is a net OPEB obligation, the annual OPEB cost reflects adjustment for interest on the net OPEB obligation. The District’s annual OPEB cost of $91,440 was equal to the ARC for the fiscal year 2010, as the transition liability was set at zero as of July 1, 2009. The District’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for the year ended June 30, 2010 was as follows:

PercentageAnnual of Annual

Fiscal Year OPEB Employer OPEB Cost Net OPEBEnded Cost Contributions Contributed Obligation

June 30, 2010 $ 91,440 $ 66,528 72.8% $ 24,912

The net OPEB obligation as of July 1, 2009 (most recent information available), was calculated as follows:

Annual required contribution $ 56,240Amortization 30,846Interest on net OPEB obligation 4,354

Annual OPEB cost 91,440

Contributions made 66,528Increase in net OPEB obligation 24,912

Net OPEB obligation, beginning of year -

Net OPEB obligation, end of year $ 24,912

The net OPEB obligation is the difference between the annual OPEB cost and the District’s contributions to the plan since the implementation date.


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e. Annual OPEB Costs and Net OPEB Obligation (Continued)

Funded Status and Funding Progress. The funded status of the plan as of July 1, 2010, was as follows:

Actuarial accrued liability (AAL) $ 908,539Actuarial value of plan assets - Unfunded actuarial accrued liability (UAAL) 908,539Funded ratio (actuarial value of plan assets/AAL) 0%Covered payroll (active plan members) N/AUAAL as a percentage of covered payroll N/A

Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the ARCs of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, typically presents multiyear trend information that shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the AALs for benefits. In the current year, only one year is reflected as this is the first year of implementation.

Actuarial Methods and Assumptions. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations.

The unfunded actuarial accrued liability is amortized as a level percentage of pay, open over thirty years, resulting in an amortization of $30,846 for the twelve month period.

Discount Rate. The discount rate as of July 1, 2009 is 5.00 percent. The discount rate is determined by the plan sponsor based on the estimated long-term investment yield on the investments that are expected to be used to finance the payment of benefits.

Trend Rate for Health Claims. The trend rate for health claims is 8.00 percent initial and 6.00 percent ultimate. The trend rate is determined by the plan sponsor based on historical data and anticipated experience under the plan.

Actuarial Cost Method. The method used to calculate normal cost and actuarial accrued liability is the entry age cost method.

There is no actuarial value of assets as the District has not advance funded its obligation.


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NOTE 14 - COMMITMENTS

As of June 30, 2010, the District had the following construction commitments:

Contractor Description Amount

Various contractors Benjamin Elementary School construction $ 3,100,463Various contractors Sugar Creek School construction 1,272,306Various contractors New Cedar Ridge Elementary School construction 2,757,922Various contractors George L. Evans Jr. High School construction 11,726,543Various contractors Security projects and renovations 5,749,443

$ 24,606,677

Operating Leases

The District has entered into the following operating lease agreements:

Lessor Items Leased

Jim’s Mobile Office Portable classroomsXerox Corporation Various duplicating equipmentDigital Copy Systems, LLC CopiersWatts Copy Systems, Inc. CopiersAmerican Capital Financial Services Various equipment

The future rental payments due on the above leases are as follows:

Year ending June 30:2011 $ 553,1892012 551,6422013 223,2082014 50,069

$ 1,378,108

NOTE 15 - JOINT AGREEMENTS

The District is a member of the Mackinaw Valley Special Education Association and the McLean-DeWitt Regional Vocational System, along with other area school districts. The District’s pupils benefit from the programs administered under these joint agreements, and the District benefits from jointly administered grants and programming. Financial information for the Mackinaw Valley Special Education Association can be located at 1809 W. Hovey, Normal, IL 61761. Financial information for the McLean-DeWitt Regional Vocational System can be located at 300 East Monroe St., Bloomington, IL 61702.


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NOTE 16 - PENDING GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB)PRONOUNCEMENTS

As of June 30, 2010, the GASB had issued the following statements not yet implemented by the District; GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definition, issued March 2009, will be effective for the District beginning with its year ending June 30, 2012. This statement establishes accounting and financial reporting standards for all governments that report governmental funds. It establishes criteria for classifying fund balances into specifically defined classifications and clarifies definitions for governmental fund types. The District has not determined the effect, if any, the adoption of the new accounting standard will have on the District’s net assets.

NOTE 17 - PRIOR PERIOD ADJUSTMENT

The capital assets have been restated to correct payments made on geo-thermal projects which were not previously included as part of capital assets.

Permanent BuildingsCapital assets, July 1, 2009, as previously reported $ 163,001,338Restated for capital expenditures not previously capitalized 1,233,139

Capital assets, July 1, 2009, as restated $ 164,234,477

This information is an integral part of the accompanying financial statements.

30

REQUIRED SUPPLEMENTARY INFORMATION

UNAUDITED

31

MCLEAN COUNTY UNIT SCHOOL DISTRICT NO. 5ILLINOIS MUNICIPAL RETIREMENT

REQUIRED SUPPLEMENTARY INFORMATION -SCHEDULE OF FUNDING PROGRESS

(Unaudited)

The trend information for the three years ended December 31, 2009 is as follows:



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

12/31/09 $22,542,799 $30,438,911 $ 7,896,112 74.06% $16,706,35047.26%12/31/08 21,707,427 28,109,741 6,402,314 77.22 15,358,85241.6812/31/07 23,334,663 26,141,319 2,806,656 89.26 14,324,24419.59

On a market value basis, the actuarial value of assets as of December 31, 2009 is $21,802,095. On a market basis, the funded ratio would be 71.63%.

OTHER POSTEMPLOYMENT BENEFITSREQUIRED SUPPLEMENTARY INFORMATION -

SCHEDULE OF FUNDING PROGRESS

Trend information for the year ended June 30, 2010 is as follows:



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

6/30/10 $ - $ 908,539 $ 908,539 0% N/A N/A

TABLE OF CONTENTS

TAB Name AFR Page No.

Auditor's Questionnaire……………………………...………....…………………………..……….....................................................Aud Quest 2Comments Applicable to the Auditor's Questionnaire……..……..………………. ………………….…………………………. Aud Quest 2Financial Profile Information …………………………………………….……………………………………………..................................................FP Info 3Estimated Financial Profile Summary…………………………………………………………………………………………………………......Financial Profile 4Basic Financial Statements

Statement of Assets and Liabilities Arising from Cash Transactions/Statement of Position ………………...............................................Assets-Liab 5 - 6 Statement of Revenues Received/Revenues, Expenditures Disbursed/Expenditures, Other Sources (Uses) and Changes in Fund Balances (All Funds)…...……………..…………………….......................................... Acct Summary 7 - 8Statements of Revenues Received/Revenues (All Funds)……………………………………………………………….................................Revenues 9 - 14Statements of Expenditures Disbursed/Expenditures Budget to Actual (All Funds)………………………....................................................Expenditures 15 - 22

Supplementary SchedulesFederal Stimulus - American Recovery and Reinvestment Act (ARRA) of FY10 Schedule…………………………………………….ARRA Sched 23Schedule of Ad Valorem Tax Receipts…………………………………………………………………………………………….. Tax Sched 24Schedule of Short-Term Debt/Long-Term Debt …………………………………………………………....................................................Short-Term Long-Term Debt 25Schedule of Restricted Local Tax Levies and Selected Revenue Sources/ Schedule of Tort Immunity Expenditures…………………………………..….……………….……………………..…....... Rest Tax Levies-Tort Im 26

Statistical SectionSchedule of Capital Outlay and Depreciation……………………………………………………………………................................................Cap Outlay Deprec 27Estimated Operating Expenditures Per Pupil and Per Capita Tuition Charge Computation FY10…………… PCTC-OEPP 28 - 29

Estimated Indirect Cost Rate for Federal Programs (Section I, Section II)……………………………………………….............................................ICR Computation 30Administrative Cost Worksheet……………………………………………………………………….……………................................................AC 31Itemization Schedule…………………………………………………………………………………………………................................................ITEMIZATION 32Reference Page………………………………………………………………………………………………………..................................................REF 33Notes, Opinion Letters, etc…… Opinion-Notes 34Audit Checklist/Balancing Schedule……………………………………………………………………………….................................................AUDITCHECK -A-133 Single Audit Section

Annual Federal Compliance Report………………………………………………………………………………….............................................A-133 Cover - CAP 35 - 44

INSTRUCTIONS/REQUIREMENTS: For School Districts/Joint Agreements

All School Districts/Joint Agreements must complete this form (Note: joint agreement supplementary/statistical schedules may not be applicable)

Round all amounts to the nearest dollar. Do not enter cents. (Exception: 9 Month ADA on page 28, line 78)

This form complies with Part 100 (Requirements for Accounting, Budgeting, Financial Reporting, and Auditing).

23, Illinois Administrative Code 100, Subtitle A, Chapter I, Subchapter C (Part 100)

Any errors left unresolved by the Audit Checklist/Balancing Schedule must be explained in the itemization page.

Submit AFR Electronically* The Annual Financial Reports (AFR) must be submitted directly through the Attachment Manager to the AFR Group by the Auditor or School District

designated personnel (Please see Instructions for complete submission procedures).

Attachment Manager Link

Note: CD/Disk no longer accepted.

* AFR supporting documentation must be embedded as Microsoft Word (.doc), Word Perfect (*.wpd) or Adobe (*.pdf) and inserted within tab "Opinions & Notes". These documents include: The Audit, Management letter, Opinion letters, Compliance letters, Financial notes etc…. For embedding instructions see "Opinions & Notes" tab of this form.Note: Adobe Acrobat (*.pdf) files cannot be embedded if you do not have the software. Simply attach files as separate docs in the Attachment

Manager and they will be embedded for you.

Submit Paper Copy of AFR with Signatures1) The auditor must send three paper copies of the AFR form (cover through page 8 at minimum) to the School District with the auditor signature. Note: School Districts and Regional Superintendents may prefer a complete paper copy in lieu of an electronic file. Please comply with their requests as neccessary.2) Upon receipt, the School District retains one copy for their records, signs, and forwards the remaining two copies to the Regional Superintendent's

office no later than October 15, annually.3) Upon receipt, the Regional Superintendent's office retains one copy for their records, signs, and forwards the remaining paper copy to ISBE no later

than November 15, annually.

* Yellow Book, CPE, and Peer Review requirements must be met if the Auditor issues an opinion stating "Governmental Accounting Standards" were utilized.Single Audit Act A-133


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A B C D E F G H I J K L M

Required to be completed for School Districts only.

A. Tax Rates (Enter the tax rate - ex: .0150 for $1.50)

Tax Year 2009 Equalized Assessed Valuation (EAV): 2,008,968,883

Educational Operations & Maintenance Transportation Combined Total Working Cash

Rate(s): 0.027001 + 0.004963 + 0.001985 = 0.033950 0.000050

B. Results of Operations *

Receipts/Revenues Disbursements/ Expenditures Excess/ (Deficiency) Fund Balance

108,663,133 110,387,390 (1,724,257) 13,802,454* The numbers shown are the sum of entries on Pages 7 & 8, lines 8, 17, 20, and 65 for the Educational, Operations & Maintenance,

Transportation and Working Cash Funds.

C. Short-Term Debt **CPPRT Notes TAWs TANs TO/EMP. Orders GSA Certificates

0 + 0 + 17,670,000 + 0 + 0 +

Other Total0 = 17,670,000

** The numbers shown are the sum of entries on page 25.

D. Long-Term Debt Check the applicable box for long-term debt allowance by type of district.

a. 6.9% for elementary and high school districts, 277,237,706X b. 13.8% for unit districts.

Long-Term Debt Outstanding:

c. Long-Term Debt (Principal only) Acct Outstanding:……….....…………….... 511 206,535,932

E. Material Impact on Financial PositionIf applicable, check any of the following items that may have a material impact on the entity's financial position during future reporting periods.Attach sheets as needed explaining each item checked.

Pending Litigation Material Decrease in EAV Material Increase/Decrease in Enrollment Adverse Arbitration Ruling Passage of Referendum Taxes Filed Under Protest Decisions By Local Board of Review or Illinois Property Tax Appeal Board (PTAB) Other Ongoing Concerns (Describe & Itemize)

Comments:

FINANCIAL PROFILE INFORMATION


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A B C D E F G H I K L M N O P Q

ESTIMATED FINANCIAL PROFILE SUMMARY(Go to the following web site for reference to the Financial Profile)

District Name: McLean County Unit School District No. 5District Code: 17-064-0050-26County Name: McLean

1. Fund Balance to Revenue Ratio: Total Ratio Score 3Total Sum of Fund Balance (P8, Cells C80, D80, F80 & I80) Funds 10, 20, 40, 70 + (50 & 80 if negative) 13,802,454.00 0.128 Weight 0.35

Funds 10, 20, 40, & 70, 107,468,647.00 Value 1.05 Less: Operating Debt Pledged to Other Funds (P8, Cell C53 thru D73) Minus Funds 10 & 20 (1,194,486.00)

2. Expenditures to Revenue Ratio: Total Ratio Score 3Total Sum of Direct Expenditures (P7, Cell C17, D17, F17, I17) Funds 10, 20 & 40 110,387,390.00 1.027 Adjustment 0

Funds 10, 20, 40 & 70, 107,468,647.00 Weight 0.35 Less: Operating Debt Pledged to Other Funds (P8, Cell C53 thru D73) Minus Funds 10 & 20 (1,194,486.00)

Possible Adjustment: Value 1.05

3. Days Cash on Hand: Total Days Score 3Funds 10, 20 40 & 70 31,484,019.00 102.67 Weight 0.10

Total Sum of Direct Expenditures (P7, Cell C17, D17, F17 & I17) Funds 10, 20, 40 divided by 360 306,631.64 Value 0.30

4. Percent of Short-Term Borrowing Maximum Remaining: Total Percent Score 4Tax Anticipation Warrants Borrowed (P25, Cell F6-7 & F11) Funds 10, 20 & 40 0.00 100.00 Weight 0.10EAV x 85% x Combined Tax Rates (P3, Cell J7 and J10) (.85 x EAV) x Sum of Combined Tax Rates 57,973,819.54 Value 0.40

5. Percent of Long-Term Debt Margin Remaining: Total Percent Score 2Long-Term Debt Outstanding (P3, Cell H37) 206,535,932.00 25.50 Weight 0.10Total Long-Term Debt Allowed (P3, Cell H31) 277,237,705.85 Value 0.20

Total Profile Score: 3.00 *

Estimated 2010 Financial Profile Designation: WARNING

* Total Profile Score may change based on data provided on the Financial ProfileInformation, page 3 and by the timing of mandated categorical payments. Final score will becalculated by ISBE.

Total Sum of Cash & Investments (P5, Cell C4, D4, F4, I4 & C5, D5, F5 &I5)

www.isbe.net/sfms/p/profile.htm

Total Sum of Direct Revenues (P7, Cell C8, D8, F8, & I80)

Total Sum of Direct Revenues (P7, Cell C8, D8, F8 & I80)


www.isbe.net/sfms/p/profile.htm

BASIC FINANCIAL STATEMENTSSTATEMENT OF ASSETS AND LIABILITIES ARISING FROM CASH TRANSACTIONS

STATEMENT OF POSITION AS OF JUNE 30, 2010

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A B C D E F G H I J K(10) (20) (30) (40) (50) (60) (70) (80) (90)

ASSETS Acct. # Educational Operations &

Maintenance Debt Services TransportationMunicipal

Retirement/Social Security

Capital Projects Working Cash Tort Fire Prevention & Safety

CURRENT ASSETS (100)

Cash (Accounts 111 through 115) 1 18,528,592 2,630,658 8,499,088 2,249,547 1,646,032 243,250 8,075,222 1,090,419 460,252Investments 120 2,207 1,233,283 35,731,575 1,623,803Taxes Receivable 130Interfund Receivables 140Intergovernmental Accounts Receivable 150Other Receivables 160Inventory 170Prepaid Items 180Other Current Assets (Describe & Itemize) 190 20,000

Total Current Assets 18,528,592 2,630,658 8,501,295 2,249,547 2,879,315 35,994,825 8,075,222 2,714,222 460,252CAPITAL ASSETS (200)

Works of Art & Historical Treasures 210Land 220Building & Building Improvements 230Site Improvements & Infrastructure 240Capitalized Equipment 250Construction in Progress 260Amount Available in Debt Service Funds 340Amount to be Provided for Payment on Long-Term Debt 350

Total Capital Assets

CURRENT LIABILITIES (400)

Interfund Payables 410Intergovernmental Accounts Payable 420Other Payables 430 4,873 4,094 1,655 120Contracts Payable 440Loans Payable 460 13,950,000 2,200,000 1,520,000Salaries & Benefits Payable 470Payroll Deductions & Withholdings 480 448 495Deferred Revenues & Other Current Liabilities 490Due to Activity Fund Organizations 493

Total Current Liabilities 13,955,321 2,204,094 0 1,522,150 0 0 0 120 0LONG-TERM LIABILITIES (500)

Long-Term Debt Payable (General Obligation, Revenue, Other) 511Total Long-Term Liabilities

Reserved Fund Balance 714 173,539 2,714,102Unreserved Fund Balance 730 4,399,732 426,564 8,501,295 727,397 2,879,315 35,994,825 8,075,222 460,252Investment in General Fixed Assets

Total Liabilities and Fund Balance 18,528,592 2,630,658 8,501,295 2,249,547 2,879,315 35,994,825 8,075,222 2,714,222 460,252

Printed: 11/11/2010 {D36FD255-3D53-4BA5-BBD7-9DD1B3A640E8}.xls

BASIC FINANCIAL STATEMENTSSTATEMENT OF ASSETS AND LIABILITIES ARISING FROM CASH TRANSACTIONS

STATEMENT OF POSITION AS OF JUNE 30, 2010

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A B

ASSETS Acct. #

CURRENT ASSETS (100)

Cash (Accounts 111 through 115) 1

Investments 120Taxes Receivable 130Interfund Receivables 140Intergovernmental Accounts Receivable 150Other Receivables 160Inventory 170Prepaid Items 180Other Current Assets (Describe & Itemize) 190

Total Current Assets

CAPITAL ASSETS (200)

Works of Art & Historical Treasures 210Land 220Building & Building Improvements 230Site Improvements & Infrastructure 240Capitalized Equipment 250Construction in Progress 260Amount Available in Debt Service Funds 340Amount to be Provided for Payment on Long-Term Debt 350

Total Capital Assets

CURRENT LIABILITIES (400)

Interfund Payables 410Intergovernmental Accounts Payable 420Other Payables 430Contracts Payable 440Loans Payable 460Salaries & Benefits Payable 470Payroll Deductions & Withholdings 480Deferred Revenues & Other Current Liabilities 490Due to Activity Fund Organizations 493

Total Current Liabilities

LONG-TERM LIABILITIES (500)

Long-Term Debt Payable (General Obligation, Revenue, Other) 511Total Long-Term Liabilities

Reserved Fund Balance 714Unreserved Fund Balance 730Investment in General Fixed Assets

Total Liabilities and Fund Balance

L M NAccount Groups

Agency Fund General Fixed Assets

General Long-Term Debt

6,383,987

6,383,987

4,082,669166,814,262

18,805,30840,221,016

8,501,295198,034,637

229,923,255 206,535,932

1,340,0471,340,047

206,535,932206,535,932

5,043,940

229,923,2556,383,987 229,923,255 206,535,932


BASIC FINANCIAL STATEMENTSTATEMENT OF REVENUES RECEIVED/REVENUES, EXPENDITURES/DISBURSED/EXPENDITURES, OTHER

SOURCES (USES) AND CHANGES IN FUND BALANCEALL FUNDS - FOR THE YEAR ENDING JUNE 30, 2010

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A B C D E F G H I J K(10) (20) (30) (40) (50) (60) (70) (80) (90)

Description Acct # Educational Operations &


Retirement/ Social Security


RECEIPTS/REVENUES

Local Sources 1000 61,146,869 10,967,095 15,822,205 4,016,773 3,635,279 2,740,791 997,385 2,346,384 1,390,683Flow-Through Receipts/Revenues from One District to Another District

20000 0 0 0

State Sources 3000 20,198,244 0 0 4,068,357 0 0 0 0 0Federal Sources 4000 7,268,410 0 0 0 0 0 0 0 0

Total Direct Receipts/Revenues 88,613,523 10,967,095 15,822,205 8,085,130 3,635,279 2,740,791 997,385 2,346,384 1,390,683

Receipts/Revenues for "On Behalf" Payments 2 3998 14,716,086Total Receipts/Revenues 103,329,609 10,967,095 15,822,205 8,085,130 3,635,279 2,740,791 997,385 2,346,384 1,390,683

DISBURSEMENTS/EXPENDITURES

Instruction 1000 67,686,375 1,441,623Support Services 2000 23,194,580 10,248,757 8,286,052 2,547,294 54,157,096 2,352,392 1,402,563Community Services 3000 187,957 0 0 9,105Payments to Other Districts & Govermental Units 4000 769,980 0 0 0 0 0 0Debt Service 5000 13,689 0 18,414,901 0 0 0 0

Total Direct Disbursements/Expenditures 91,852,581 10,248,757 18,414,901 8,286,052 3,998,022 54,157,096 2,352,392 1,402,563

Disbursements/Expenditures for "On Behalf" Payments 2 4180 14,716,086 0 0 0 0 0 0 0Total Disbursements/Expenditures 106,568,667 10,248,757 18,414,901 8,286,052 3,998,022 54,157,096 2,352,392 1,402,563Excess of Direct Receipts/Revenues Over (Under) Direct

Disbursements/Expenditures 3 (3,239,058) 718,338 (2,592,696) (200,922) (362,743) (51,416,305) 997,385 (6,008) (11,880)

OTHER SOURCES/USES OF FUNDS

OTHER SOURCES OF FUNDS (7000)PERMANENT TRANSFER FROM VARIOUS FUNDS

Abolishment or Abatement of the Working Cash Fund 7110Transfer of Working Cash Fund Interest 7120Transfer Among Funds 7130Transfer of Interest 7140Transfer from Capital Project Fund to O&M Fund 7150Transfer of Excess Fire Prevention & Safety Tax and Interest Proceeds

to Debt Service Fund 47160

Transfer to Excess Fire Prevention & Safety Bond and Interest Proceeds

to Debt Service Fund 4 7170

SALE OF BONDS (7200)Principal on Bonds Sold 7210Premium on Bonds Sold 7220Accrued Interest on Bonds Sold 7230

Sale or Compensation for Fixed Assets 5 7300Transfer to Debt Service to Pay Principal on Capital Leases 7400 916,813Transfer to Debt Service to Pay Interest on Capital Leases 7500 277,673Transfer to Debt Service to Pay Principal on Revenue Bonds 7600 0Transfer to Debt Service Fund to Pay Interest on Revenue Bonds 7700 0Transfer to Capital Projects Fund 7800 0ISBE Loan Proceeds 7900Other Sources Not Classified Elsewhere 7990 448,724Total Other Sources of Funds 448,724 0 1,194,486 0 0 0 0 0 0

OTHER USES OF FUNDS (8000)PERMANENT TRANSFER TO VARIOUS OTHER FUNDS (8100)

Abolishment or Abatement of the Working Cash Fund 8110 0Transfer of Working Cash Fund Interest 8120 0Transfer Among Funds 8130Transfer of Interest 8140Transfer from Capital Project Fund to O&M Fund 8150 0


BASIC FINANCIAL STATEMENTSTATEMENT OF REVENUES RECEIVED/REVENUES, EXPENDITURES/DISBURSED/EXPENDITURES, OTHER

SOURCES (USES) AND CHANGES IN FUND BALANCEALL FUNDS - FOR THE YEAR ENDING JUNE 30, 2010

Page 8

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A B C D E F G H I J K(10) (20) (30) (40) (50) (60) (70) (80) (90)





51

52535455565758596061626364656667686970717273747576

7778

7980

Transfer of Excess Fire Prevention & Safety Tax & Interest Proceeds to O&M Fund 8160 0Transfer of Excess Fire Prevention & Safety Bond and Interest Proceeds to Debt Service Fund 8170 0Taxes Pledged to Pay Principal on Capital Leases 8410 536,813 380,000Grants/Reimbursements Pledged to Pay Principal on Capital Leases 8420

Other Revenues Pledged to Pay Principal on Capital Leases 8430

Fund Balance Transfers Pledged to Pay Principal on Capital Leases 8440

Taxes Pledged to Pay Interest on Capital Leases 8510 29,674 247,999Grants/Reimbursements Pledged to Pay Interest on Capital Leases 8520

Other Revenues Pledged to Pay Interest on Capital Leases 8530

Fund Balance Transfers Pledged to Pay Interest on Capital Leases 8540

Taxes Pledged to Pay Principal on Revenue Bonds 8610

Grants/Reimbursements Pledged to Pay Principal on Revenue Bonds 8620

Other Revenues Pledged to Pay Principal on Revenue Bonds 8630

Fund Balance Transfers Pledged to Pay Principal on Revenue Bonds 8640

Taxes Pledged to Pay Interest on Revenue Bonds 8710

Grants/Reimbursements Pledged to Pay Interest on Revenue Bonds 8720

Other Revenues Pledged to Pay Interest on Revenue Bonds 8730

Fund Balance Transfers Pledged to Pay Interest on Revenue Bonds 8740

Taxes Transferred to Pay for Capital Projects 8810

Grants/Reimbursements Pledged to Pay for Capital Projects 8820

Other Revenues Pledged to Pay for Capital Projects 8830

Fund Balance Transfers Pledged to Pay for Capital Projects 8840

Transfer to Debt Service Fund to Pay Principal on ISBE Loans 8910

Other Uses Not Classified Elsewhere 8990

Total Other Uses of Funds 566,487 627,999 0 0 0 0 0 0 0

Total Other Sources/Uses of Funds 6 (117,763) (627,999) 1,194,486 0 0 0 0 0 0

(3,356,821) 90,339 (1,398,210) (200,922) (362,743) (51,416,305) 997,385 (6,008) (11,880)Fund Balances - July 1, 2009 7,930,092 336,225 9,899,505 928,319 3,242,058 87,411,130 7,077,837 2,720,110 472,132

Other Changes in Fund Balances - Increases (Decreases) (Describe & Itemize)Fund Balances - June 30, 2010 4,573,271 426,564 8,501,295 727,397 2,879,315 35,994,825 8,075,222 2,714,102 460,252

Excess of Receipts/Revenues and Other Sources of Funds (Over/Under) Expenditures/Disbursements and Other Uses of Funds


STATEMENT OF REVENUES RECEIVED/REVENUESFOR THE YEAR ENDING JUNE 30, 2010

Page 9

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3456789

101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354

A B C D E F G H I J K(10) (20) (30) (40) (50) (60) (70) (80) (90)





RECEIPTS/REVENUES FROM LOCAL SOURCES (1000)

AD VALOREM TAXES LEVIED BY LOCAL EDUCATION AGENCY

Designated Purposes Levies (1110-1120) 7 52,981,793 9,889,232 15,783,475 3,955,733 1,391,638 989,383 2,311,356 989,383Leasing Purposes Levy 8 1130 366,516 624,068Special Education Purposes Levy 1140 792,429FICA/Medicare Only Purposes Levies 1150 2,092,810Area Vocational Construction Purposes Levy 1160Summer School Purposes Levy 1170Other Tax Levies (Describe & Itemize) 1190Total Ad Valorem Taxes Levied By District 54,140,738 10,513,300 15,783,475 3,955,733 3,484,448 0 989,383 2,311,356 989,383

PAYMENTS IN LIEU OF TAXESMobile Home Privilege Tax 1210 65,439 12,005 18,553 4,802 4,141 1,201 2,850 1,201Payments from Local Housing Authorities 1220

Corporate Personal Property Replacement Taxes 9 1230 1,404,021 140,557Other Payments in Lieu of Taxes (Describe & Itemize) 1290Total Payments in Lieu of Taxes 1,469,460 12,005 18,553 4,802 144,698 0 1,201 2,850 1,201

TUITION Regular - Tuition from Pupils or Parents (In State) 1311 3,775Regular - Tuition from Other Districts (In State) 1312Regular - Tuition from Other Sources (In State) 1313Regular - Tuition from Other Sources (Out of State) 1314Summer Sch - Tuition from Pupils or Parents (In State) 1321Summer Sch - Tuition from Other Districts (In State) 1322 19,107Summer Sch - Tuition from Other Sources (In State) 1323Summer Sch - Tuition from Other Sources (Out of State) 1324CTE - Tuition from Pupils or Parents (In State) 1331CTE - Tuition from Other Districts (In State) 1332CTE - Tuition from Other Sources (In State) 1333CTE - Tuition from Other Sources (Out of State) 1334Special Ed - Tuition from Pupils or Parents (In State) 1341Special Ed - Tuition from Other Districts (In State) 1342 461,221Special Ed - Tuition from Other Sources (In State) 1343Special Ed - Tuition from Other Sources (Out of State) 1344Adult - Tuition from Pupils or Parents (In State) 1351Adult - Tuition from Other Districts (In State) 1352Adult - Tuition from Other Sources (In State) 1353Adult - Tuition from Other Sources (Out of State) 1354Total Tuition 484,103

TRANSPORTATION FEESRegular -Transp Fees from Pupils or Parents (In State) 1411Regular - Transp Fees from Other Districts (In State) 1412 36,476Regular - Transp Fees from Other Sources (In State) 1413Regular - Transp Fees from Co-curricular Activities (In State) 1415 9,995Regular Transp Fees from Other Sources (Out of State) 1416Summer Sch - Transp. Fees from Pupils or Parents (In State) 1421Summer Sch - Transp. Fees from Other Districts (In State) 1422Summer Sch - Transp. Fees from Other Sources (In State) 1423Summer Sch - Transp. Fees from Other Sources (Out of State) 1424CTE - Transp Fees from Pupils or Parents (In State) 1431CTE - Transp Fees from Other Districts (In State) 1432CTE - Transp Fees from Other Sources (In State) 1433CTE - Transp Fees from Other Sources (Out of State) 1434



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A B C D E F G H I J K(10) (20) (30) (40) (50) (60) (70) (80) (90)





555657585960616263646566676869707172737475767778798081828384858687888990919293949596979899100101102103

Special Ed - Transp Fees from Pupils or Parents (In State) 1441Special Ed - Transp Fees from Other Districts (In State) 1442Special Ed - Transp Fees from Other Sources (In State) 1443Special Ed - Transp Fees from Other Sources (Out of State) 1444Adult - Transp Fees from Pupils or Parents (In State) 1451Adult - Transp Fees from Other Districts (In State) 1452Adult - Transp Fees from Other Sources (In State) 1453Adult - Transp Fees from Other Sources (Out of State) 1454Total Transportation Fees 46,471

EARNINGS ON INVESTMENTSInterest on Investments 1510 10,444 1,228 20,177 722 6,133 2,553,003 6,801 4,944 99Gain or Loss on Sale of Investments 1520Total Earnings on Investments 10,444 1,228 20,177 722 6,133 2,553,003 6,801 4,944 99

FOOD SERVICESales to Pupils - Lunch 1611 3,089,640Sales to Pupils - Breakfast 1612 56,019Sales to Pupils - A la Carte 1613 7,272Sales to Pupils - Other (Describe & Itemize) 1614Sales to Adults 1620Other Food Service (Describe & Itemize) 1690 61,743Total Food Service 3,214,674

DISTRICT/SCHOOL ACTIVITY INCOMEAdmissions - Athletic 1711 83,371Admissions - Other (Describe & Itemize) 1719 560Fees 1720 216,900Book Store Sales 1730Other District/School Activity Revenue (Describe & Itemize) 1790Total District/School Activity Income 300,831 0

TEXTBOOK INCOMERentals - Regular Textbooks 1811 1,132,399Rentals - Summer School Textbooks 1812Rentals - Adult/Continuing Education Textbooks 1813Rentals - Other (Describe & Itemize) 1819Sales - Regular Textbooks 1821Sales - Summer School Textbooks 1822Sales - Adult/Continuing Education Textbooks 1823Sales - Other (Describe & Itemize) 1829Other (Describe & Itemize) 1890Total Textbook Income 1,132,399

OTHER REVENUE FROM LOCAL SOURCESRentals 1910 81,526Contributions and Donations from Private Sources 1920 233,611Impact Fees from Municipal or County Governments 1930Services Provided Other Districts 1940Refund of Prior Years' Expenditures 1950 27,164 9,000Payments of Surplus Moneys from TIF Districts 1960 6,831Drivers' Education Fees 1970 90,614Proceeds from Vendors' Contracts 1980School Facility Occupation Tax Proceeds 1983



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A B C D E F G H I J K(10) (20) (30) (40) (50) (60) (70) (80) (90)





104105106107108109

110111112113

114

115116117118119

120121122123124125126127128129130131132133134135136137138139140141142143144145146147148149

Payment from Other Districts 1991Sale of Vocational Projects 1992Other Local Fees 1993Other Local Revenues (Describe & Itemize) 1999 36,000 359,036 45 187,788 27,234 400,000Total Other Revenue from Local Sources 394,220 440,562 0 9,045 0 187,788 0 27,234 400,000Total Receipts/Revenues from Local Sources 1000 61,146,869 10,967,095 15,822,205 4,016,773 3,635,279 2,740,791 997,385 2,346,384 1,390,683

FLOW-THROUGH RECEIPTS/REVENUES FROM ONE DISTRICT TO ANOTHER DISTRICT (2000)

Flow-through Revenue from State Sources 2100Flow-through Revenue from Federal Sources 2200Other Flow-Through (Describe & Itemize) 2300Total Flow-Through Receipts/Revenues from One District to Another District

20000 0 0 0

RECEIPTS/REVENUES FROM STATE SOURCES (3000)

UNRESTRICTED GRANTS-IN-AIDGeneral State Aid- Sec. 18-8.05 3001 13,920,952General State Aid - Hold Harmless/Supplemental 3002Reorganization Incentives (Accounts 3005-3021) 3005Other Unrestricted Grants-In-Aid from State Sources (Describe & Itemize)

3099

Total Unrestricted Grants-In-Aid 13,920,952 0 0 0 0 0 0 0RESTRICTED GRANTS-IN-AID

SPECIAL EDUCATIONSpecial Education - Private Facility Tuition 3100 618,603Special Education - Extraordinary 3105 1,254,731Special Education - Personnel 3110 2,483,544Special Education - Orphanage - Individual 3120 742,160Special Education - Orphanage - Summer 3130 0Special Education - Summer School 3145Special Education - Other (Describe & Itemize) 3199Total Special Education 5,099,038 0 0

CAREER AND TECHNICAL EDUCATION (CTE)CTE - Technical Education - Tech Prep 3200CTE - Secondary Program Improvement (CTEI) 3220CTE - WECEP 3225CTE - Agriculture Education 3235CTE - Instructor Practicum 3240CTE - Student Organizations 3270CTE - Other (Describe & Itemize) 3299Total Career and Technical Education 0 0 0

BILINGUAL EDUCATIONBilingual Ed - Downstate - TPI and TBE 3305 84,772Bilingual Education Downstate - Transitional Bilingual Education 3310Total Bilingual Ed 84,772 0State Free Lunch & Breakfast 3360 46,284School Breakfast Initiative 3365 833Driver Education 3370 99,962Adult Ed (from ICCB) 3410Adult Ed - Other (Describe & Itemize) 3499



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A B C D E F G H I J K(10) (20) (30) (40) (50) (60) (70) (80) (90)





150151152153154155156157158159160161162163164165166167168169170171172173

174

175176

177

178179180181182

183

184

185186187188189190191192193194195196197

TRANSPORTATIONTransportation - Regular/Vocational 3500 1,746,698Transportation - Special Education 3510 2,295,218Transportation - Other (Describe & Itemize) 3599 26,441Total Transportation 0 0 4,068,357 0Learning Improvement - Change Grants 3610Scientific Literacy 3660Truant Alternative/Optional Education 3695Early Childhood - Block Grant 3705 333,539Reading Improvement Block Grant 3715 165,487Reading Improvement Block Grant - Reading Recovery 3720Continued Reading Improvement Block Grant 3725Continued Reading Improvement Block Grant (2% Set Aside) 3726Chicago General Education Block Grant 3766Chicago Educational Services Block Grant 3767School Safety & Educational Improvement Block Grant 3775 54,278Technology - Learning Technology Centers 3780State Charter Schools 3815 13,989Extended Learning Opportunities - Summer Bridges 3825Infrastructure Improvements - Planning/Construction 3920School Infrastructure - Maintenance Projects 3925Other Restricted Revenue from State Sources (Describe & Itemize) 3999 379,110

6,277,292 0 0 4,068,357 0 0 0 0 0Total Receipts from State Sources 3000 20,198,244 0 0 4,068,357 0 0 0 0 0

RECEIPTS/REVENUES FROM FEDERAL SOURCES (4000)

Federal Impact Aid 4001Other Unrestricted Grants-In-Aid Received Directly from the Fed Govt (Describe & Itemize)

4009

0 0 0 0 0 0 0 0 0

Head Start 4045Construction (Impact Aid) 4050MAGNET 4060Other Restricted Grants-In-Aid Received Directly from the Federal Govt (Describe & Itemize)

4090

0 0 0 0 0 0

TITLE VTitle V - Innovation and Flexibility Formula 4100Title V - District Projects 4105Title V - Rural & Low Income Schools 4107Title V - Other (Describe & Itemize) 4199Total Title V 0 0 0 0

FOOD SERVICEBreakfast Start-Up 4200National School Lunch Program 4210 1,221,538Special Milk Program 4215School Breakfast Program 4220 232,115Summer Food Service Admin/Program 4225

Total Restricted Grants-In-Aid

UNRESTRICTED GRANTS-IN-AID RECEIVED DIRECTLY FROM FEDERAL GOVT

RESTRICTED GRANTS-IN-AID RECEIVED FROM FEDERAL GOVT THRU THE STATE

Total Unrestricted Grants-In-Aid Received Directly from the Federal Govt

Total Restricted Grants-In-Aid Received Directly from Federal Govt

RESTRICTED GRANTS-IN-AID RECEIVED DIRECTLY FROM FEDERAL GOVT



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A B C D E F G H I J K(10) (20) (30) (40) (50) (60) (70) (80) (90)





198199200201202203204205206207208209210211212213214215216217218219220221222223224225226227228229230231232233234235236237238239240241242243244245246247248249250251

Child & Adult Care Food Program 4226 28,437Fresh Fruits & Vegetables 4240Food Service - Other (Describe & Itemize) 4299Total Food Service 1,482,090 0

TITLE ITitle I - Low Income 4300 1,160,490Title I - Low Income - Neglected, Private 4305 44,955Title I - Comprehensive School Reform 4332Title I - Reading First 4334Title I - Even Start 4335Title I - Reading First SEA Funds 4337Title I - Migrant Education 4340Title I - Other (Describe & Itemize) 4399Total Title I 1,205,445 0 0 0

TITLE IVTitle IV - Safe & Drug Free Schools - Formula 4400 33,789Title IV - 21st Century 4421Title IV - Other (Describe & Itemize) 4499Total Title IV 33,789 0 0 0

FEDERAL - SPECIAL EDUCATIONFed - Spec Education - Preschool Flow-Through 4600Fed - Spec Education - Preschool Discretionary 4605Fed - Spec Education - IDEA - Flow Through/Low Incidence 4620Fed - Spec Education - IDEA - Room & Board 4625 462,849Fed - Spec Education - IDEA - Discretionary 4630Fed - Spec Education - IDEA - Other (Describe & Itemize) 4699Total Federal - Special Education 462,849 0 0 0

CTE - PERKINSCTE - Perkins - Title IIIE - Tech Prep 4770 10,400CTE - Other (Describe & Itemize) 4799Total CTE - Perkins 10,400 0 0Federal - Adult Education 4810ARRA - General State Aid - Education Stabilization 4850 2,318,428ARRA - Title I - Low Income 4851 374,381ARRA - Title I - Neglected, Private 4852ARRA - Title I - Delinquent, Private 4853 26,900ARRA - Title I - School Improvement (Part A) 4854ARRA - Title I - School Improvement (Section 1003g) 4855ARRA - IDEA - Part B - Preschool 4856ARRA - IDEA - Part B - Flow-Through 4857ARRA - Title IID - Technology-Formula 4860ARRA - Title IID - Technology-Competitive 4861ARRA - McKinney - Vento Homeless Education 4862ARRA - Child Nutrition Equipment Assistance 4863Impact Aid Formula Grants 4864Impact Aid Competitive Grants 4865Qualified Zone Academy Bond Tax Credits 4866Qualified School Construction Bond Credits 4867Build America Bond Tax Credits 4868Build America Bond Interest Reimbursement 4869ARRA - General State Aid - Other Govt Services Stabilization 4870 771,099Other ARRA Funds - II 4871Other ARRA Funds - III 4872Other ARRA Funds - IV 4873



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A B C D E F G H I J K(10) (20) (30) (40) (50) (60) (70) (80) (90)





252253254255256257258259260261262263264265266267268269

270

271272273

Other ARRA Funds - V 4874ARRA - Early Childhood 4875Other ARRA Funds VII 4876Other ARRA Funds VIII 4877Other ARRA Funds IX 4878Other ARRA Funds X 4879Other ARRA Funds XI 4880Total Stimulus Programs 3,490,808 0 0 0 0 0 0 0Advanced Placement Fee/International Baccalaureate 4904Emergency Immigrant Assistance 4905 1,085Title III - English Language Acquisition 4909 11,100Learn & Serve America 4910McKinney Education for Homeless Children 4920Title II - Eisenhower Professional Development Formula 4930Title II - Teacher Quality 4932 452,375Federal Charter Schools 4960Medicaid Matching Funds - Administrative Outreach 4991 67,807Medicaid Matching Funds - Fee-for-Service Program 4992Other Restricted Revenue from Federal Sources (Describe & Itemize) 4998

50,662

7,268,410 0 0 0 0 0 0 0Total Receipts/Revenues from Federal Sources 4000 7,268,410 0 0 0 0 0 0 0 0Total Direct Receipts/Revenues 88,613,523 10,967,095 15,822,205 8,085,130 3,635,279 2,740,791 997,385 2,346,384 1,390,683

Total Restricted Grants-In-Aid Received from the Fedederal Govt Thru the State


STATEMENT OF EXPENDITURES DISBURSED/EXPENDITURES, BUDGET TO ACTUALFOR THE YEAR ENDING JUNE 30, 2010

Page 15

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3456789

1011121314151617181920212223242526272829303132333435363738394041424344454647484950

5152535455

A B C D E F G H I J K L(100) (200) (300) (400) (500) (600) (700) (800) (900)

Description Funct # Salaries Employee

BenefitsPurchased Services

Supplies & Materials Capital Outlay Other Objects Non-Capitalized

EquipmentTermination

Benefits Total Budget

INSTRUCTION (ED)Regular Programs 1100 36,682,645 5,159,786 389,063 989,103 150,491 34,247 162,201 43,567,536 43,526,209Pre-K Programs 1125 0 0Special Education Programs (Functions 1200-1220) 1200 13,291,131 2,612,421 126,844 171,666 0 13,140 16,215,202 16,404,072Special Education Programs Pre-K 1225 0 0Remedial and Supplemental Programs K-12 1250 1,237,985 441,205 75,626 1,754,816 1,759,089Remedial and Supplemental Programs Pre-K 1275 0 0Adult/Continuing Education Programs 1300 0 0CTE Programs 1400 5,833 843 2,625 2,087 11,388 14,513Interscholastic Programs 1500 430,302 15,431 263,407 132,898 33,928 47,660 923,626 926,237Summer School Programs 1600 53,329 5,304 2,293 60,926 56,931Gifted Programs 1650 25,185 550 7,083 17,015 2,600 52,433 56,750Driver's Education Programs 1700 79,725 2,780 3,000 979 15,849 102,333 101,382Bilingual Programs 1800 489,123 86,327 75 1,058 576,583 669,549Truant Alternative & Optional Programs 1900 81,631 15,835 32,500 9,647 188,427 328,040 331,340Pre-K Programs - Private Tuition 1910 0 0Regular K-12 Programs - Private Tuition 1911 0 0Special Education Programs K-12 - Private Tuition 1912 4,093,492 4,093,492 4,097,300Special Education Programs Pre-K - Tuition 1913 0 0Remedial/Supplemental Programs K-12 - Private Tuition 1914 0 0Remedial/Supplemental Programs Pre-K - Private Tuition 1915 0 0Adult/Continuing Education Programs - Private Tuition 1916 0 0CTE Programs - Private Tuition 1917 0 0Interscholastic Programs - Private Tuition 1918 0 0Summer School Programs - Private Tuition 1919 0 0Gifted Programs - Private Tuition 1920 0 0Bilingual Programs - Private Tuition 1921 0 0Truants Alternative/Optional Ed Progms - Private Tuition 1922 0 0Total Instruction 10 1000 52,376,889 8,340,482 824,597 1,402,372 166,340 4,352,694 223,001 0 67,686,375 67,943,372

SUPPORT SERVICES (ED)SUPPORT SERVICES - PUPILS

Attendance & Social Work Services 2110 803,051 111,402 4,559 433 919,445 941,650Guidance Services 2120 1,109,365 149,241 8,432 1,267,038 1,307,652Health Services 2130 665,752 87,703 13,491 8,371 1,866 777,183 791,068Psychological Services 2140 730,325 91,684 2,811 323 825,143 834,047Speech Pathology & Audiology Services 2150 0 0Other Support Services - Pupils (Describe & Itemize) 2190 83,779 8,435 121,736 8,758 222,708 249,499Total Support Services - Pupils 2100 3,392,272 448,465 142,597 26,317 0 0 1,866 0 4,011,517 4,123,916

SUPPORT SERVICES - INSTRUCTIONAL STAFFImprovement of Instruction Services 2210 1,120,769 145,496 224,277 729,477 1,400 2,221,419 2,452,253Educational Media Services 2220 1,659,937 205,947 11,651 169,473 2,047,008 2,053,632Assessment & Testing 2230 2,436 144,493 146,929 148,100Total Support Services - Instructional Staff 2200 2,780,706 351,443 238,364 1,043,443 0 1,400 0 0 4,415,356 4,653,985

SUPPORT SERVICES - GENERAL ADMINISTRATIONBoard of Education Services 2310 185,204 1,283 10,784 197,271 241,400Executive Administration Services 2320 293,949 64,574 272,902 50,542 225,850 7,873 526 916,216 1,079,430Special Area Administration Services 2330 6,000 6,000 6,750

Tort Immunity Services 2360 - 2370 0 0

Total Support Services - General Administration 2300 299,949 64,574 458,106 51,825 225,850 18,657 526 0 1,119,487 1,327,580SUPPORT SERVICES - SCHOOL ADMINISTRATION

Office of the Principal Services 2410 4,147,058 857,809 11,024 12,520 5,028,411 5,063,932Other Support Services - School Admin (Describe & Itemize)

2490 0 0

10 - EDUCATIONAL FUND (ED)



Page 16

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A B C D E F G H I J K L(100) (200) (300) (400) (500) (600) (700) (800) (900)






5657585960616263646566

676869707172737475767778798081

82

838485

8687888990

919293

94

Total Support Services - School Administration 2400 4,147,058 857,809 11,024 0 0 12,520 0 0 5,028,411 5,063,932SUPPORT SERVICES - BUSINESS

Direction of Business Support Services 2510 61,894 11,417 157,056 614 905 231,886 207,865Fiscal Services 2520 224,643 38,640 8,642 6,998 2,861 281,784 284,998Operation & Maintenance of Plant Services 2540 0 0Pupil Transportation Services 2550 0 0Food Services 2560 1,641,235 26,278 20,674 2,265,933 57,412 20,342 4,031,874 4,083,123Internal Services 2570 210,756 15,368 300,931 68,641 595,696 549,987Total Support Services - Business 2500 2,138,528 91,703 487,303 2,342,186 0 61,178 20,342 0 5,141,240 5,125,973

SUPPORT SERVICES - CENTRALDirection of Central Support Services 2610 0 0

Planning, Research, Development, & Evaluation Services 2620 8,000 8,000 21,000Information Services 2630 56,869 5,520 7,553 720 310 70,972 75,290Staff Services 2640 564,833 92,949 95,196 9,610 932 763,520 783,155Data Processing Services 2660 551,969 78,417 393,971 1,149,659 448,724 377 2,623,117 2,817,190Total Support Services - Central 2600 1,173,671 176,886 504,720 1,159,989 448,724 1,619 0 0 3,465,609 3,696,635Other Support Services (Describe & Itemize) 2900 12,960 12,960 4,000Total Support Services 2000 13,945,144 1,990,880 1,842,114 4,623,760 674,574 95,374 22,734 0 23,194,580 23,996,021

COMMUNITY SERVICES (ED) 3000 129,767 20,983 17,691 19,516 187,957 255,124PAYMENTS TO OTHER DISTRICTS & GOVT UNITS (ED)

PAYMENTS TO OTHER GOVT UNITS (IN-STATE)Payments for Regular Programs 4110 0 0Payments for Special Education Programs 4120 300,000 300,000 300,000Payments for Adult/Continuing Education Programs 4130 0 0Payments for CTE Programs 4140 374,648 374,648 309,678Payments for Community College Programs 4170 0 0Other Payments to In-State Govt. Units (Describe & Itemize)

419023,221 26,224 49,445 21,615

Total Payments to Dist & Other Govt Units (In-State) 4100 323,221 400,872 724,093 631,293Payments for Regular Programs - Tuition 4210 0 0Payments for Special Education Programs - Tuition 4220 0 0Payments for Adult/Continuing Education Programs - Tuition 4230 0 0Payments for CTE Programs - Tuition 4240 0 0Payments for Community College Programs - Tuition 4270 0 0Payments for Other Programs - Tuition 4280 0 0Other Payments to In-State Govt Units 4290 0 0Total Payments to Other District & Govt Units -Tuition (In State) 4200 0 0 0Payments for Regular Programs - Transfers 4310 0 0Payments for Special Education Programs - Transfers 4320 0 0

Payments for Adult/Continuing Ed Programs - Transfers 4330 0 0



Page 17

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A B C D E F G H I J K L(100) (200) (300) (400) (500) (600) (700) (800) (900)






95969798

99100101102103104105106107108109110111112113

114115

116117118119120121122123124125126127128129130131132133

134135136137138139140141

Payments for CTE Programs - Transfers 4340 0 0Payments for Community College Program - Transfers 4370 0 0Payments for Other Programs - Transfers 4380 0 0Other Payments to In-State Govt Units - Transfers 4390 45,887 45,887 15,000Total Payments to Other District & Govt Units - Transfers (In-State)

43000 45,887 45,887 15,000

Payments to Other Dist & Govt Units (Out-of-State) 4400 0 0Total Payments to Other District & Govt Units 4000 323,221 446,759 769,980 646,293

DEBT SERVICES (ED)DEBT SERVICES - INTEREST ON SHORT-TERM DEBT

Tax Anticipation Warrants 5110 0 0Tax Anticipation Notes 5120 0 0Corporate Personal Prop. Repl. Tax Anticipation Notes 5130 0 0State Aid Anticipation Certificates 5140 0 0Other Interest on Short-Term Debt 5150 0 0Total Interest on Short-Term Debt 5100 0 0 0Debt Services - Interest on Long-Term Debt 5200 13,689 13,689 0Total Debt Services 5000 13,689 13,689 0

PROVISIONS FOR CONTINGENCIES (ED) 6000 0Total Direct Disbursements/Expenditures 66,451,800 10,352,345 3,007,623 6,045,648 840,914 4,908,516 245,735 0 91,852,581 92,840,810Excess (Deficiency) of Receipts/Revenues Over Disbursements/Expenditures (3,239,058)

SUPPORT SERVICES (O&M)SUPPORT SERVICES - PUPILS

Other Support Services - Pupils (Describe & Itemize) 2190 0 0SUPPORT SERVICES - BUSINESS

Direction of Business Support Services 2510 0 0Facilities Acquisition & Construction Services 2530 334,094 334,094 341,500Operation & Maintenance of Plant Services 2540 4,689,341 701,202 1,424,234 3,045,469 29,000 830 24,587 9,914,663 11,022,618Pupil Transportation Services 2550 0 0Food Services 2560 0 0Total Support Services - Business 2500 4,689,341 701,202 1,758,328 3,045,469 29,000 830 24,587 0 10,248,757 11,364,118Other Support Services (Describe & Itemize) 2900 0 0Total Support Services 2000 4,689,341 701,202 1,758,328 3,045,469 29,000 830 24,587 0 10,248,757 11,364,118

COMMUNITY SERVICES (O&M) 3000 0PAYMENTS TO OTHER DIST & GOVT UNITS (O&M)

PAYMENTS TO OTHER GOVT UNITS (IN-STATE)Payments for Special Education Programs 4120 0 0Payments for CTE Programs 4140 0 0Other Payments to In-State Govt. Units (Describe & Itemize)

41900 0

Total Payments to Other Govt. Units (In-State) 4100 0 0 0 0Payments to Other Govt. Units (Out of State) 4400 0 0Total Payments to Other Dist & Govt Units 4000 0 0 0 0

DEBT SERVICES (O&M) 5000DEBT SERVICES - INTEREST ON SHORT-TERM DEBT

Tax Anticipation Warrants 5110 0 0Tax Anticipation Notes 5120 0 0

20 - OPERATIONS & MAINTENANCE FUND (O&M)



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A B C D E F G H I J K L(100) (200) (300) (400) (500) (600) (700) (800) (900)






142143144145146147148149150151

152153154155156157158159160

161162

163164165166167

168169

170171172173174175176177178179180181182183184185

186187

Corporate Personal Prop. Repl. Tax Anticipation Notes 5130 0 0State Aid Anticipation Certificates 5140 0 0Other Interest on Short-Term Debt (Describe & Itemize) 5150 0 0Total Debt Service - Interest on Short-Term Debt 5100 0 0 0

DEBT SERVICE - INTERST ON LONG-TERM DEBT 5200 0 0Total Debt Services 5000 0 0 0

PROVISIONS FOR CONTINGENCIES (O&M) 60004,689,341 701,202 1,758,328 3,045,469 29,000 830 24,587 0 10,248,757 11,364,118

718,338

PAYMENTS TO OTHER DIST & GOVT UNITS (DS) 4000 0 0DEBT SERVICES (DS) 5000

DEBT SERVICES - INTEREST ON SHORT-TERM DEBTTax Anticipation Warrants 5110 0 0Tax Anticipation Notes 5120 0 0Corporate Personal Prop. Repl. Tax Anticipation Notes 5130 0 0State Aid Anticipation Certificates 5140 0 0Other Interest on Short-Term Debt (Describe & Itemize) 5150 0 0

Total Debt Services - Interest On Short-Term Debt 5100 0 0 0DEBT SERVICES - INTEREST ON LONG-TERM DEBT 5200 10,552,012 10,552,012 10,528,565

DEBT SERVICES - PAYMENTS OF PRINCIPAL ON LONG-

TERM DEBT (Lease/Purchase Principal Retired) 11

5300

7,856,813 7,856,813 7,320,000DEBT SERVICES - OTHER (Describe & Itemize) 5400 6,076 6,076 112,000

Total Debt Services 5000 0 18,414,901 18,414,901 17,960,565PROVISION FOR CONTINGENCIES (DS) 6000 0

Total Disbursements/ Expenditures 0 18,414,901 18,414,901 17,960,565Excess (Deficiency) of Receipts/Revenues Over Disbursements/Expenditures (2,592,696)

40 - TRANSPORTATION FUND (TR)

SUPPORT SERVICES (TR)SUPPORT SERVICES - PUPILS

Other Support Services - Pupils (Describe & Itemize) 2190 0 0SUPPORT SERVICES - BUSINESS

Pupil Transportation Services 2550 4,244,836 785,680 906,589 1,381,777 720,196 1,732 245,242 8,286,052 8,602,033Other Support Services (Describe & Itemize) 2900 0 0Total Support Services 2000 4,244,836 785,680 906,589 1,381,777 720,196 1,732 245,242 0 8,286,052 8,602,033

COMMUNITY SERVICES (TR) 3000 0 0PAYMENTS TO OTHER DIST & GOVT UNITS (TR)

PAYMENTS TO OTHER GOVT UNITS (IN-STATE)Payments for Regular Programs 4110 0 0Payments for Special Education Programs 4120 0 0Payments for Adult/Continuing Education Programs 4130 0 0Payments for CTE Programs 4140 0 0Payments for Community College Programs 4170 0 0Other Payments to In-State Govt. Units (Describe & Itemize)

41900 0

Total Payments to Other Govt. Units (In-State) 4100 0 0 0 0

30 - DEBT SERVICES (DS)

Excess (Deficiency) of Receipts/Revenues\Over Disbursements/ Expenditures

Total Direct Disbursements/Expenditures



Page 19

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A B C D E F G H I J K L(100) (200) (300) (400) (500) (600) (700) (800) (900)






188189190191192193194195196

197198

199200201202203

204205

206207208209210211212213214215216217218219220221222223224225226227228229230231232233234235236

PAYMENTS TO OTHER GOVT UNITS (OUT-OF-STATE) 4400 0 0Total Payments to Other Dist & Govt Units 4000 0 0 0 0

DEBT SERVICES (TR)DEBT SERVICE - INTEREST ON SHORT-TERM DEBT

Tax Anticipation Warrants 5110 0 0Tax Anticipation Notes 5120 0 0Corporate Personal Prop. Repl. Tax Anticipation Notes 5130 0 0State Aid Anticipation Certificates 5140 0 0Other Interest on Short-Term Debt (Describe & Itemize) 5150 0 0

Total Debt Services - Interest On Short-Term Debt 5100 0 0 0DEBT SERVICES - INTEREST ON LONG-TERM DEBT 5200 0 0DEBT SERVICE - PAYMENTS OF PRINCIPAL ON LONG-

TERM DEBT (Lease/Purchase Principal Retired) 115300

0 0DEBT SERVICES - OTHER (Describe & Itemize) 5400 0 0

Total Debt Services 0 0 0PROVISION FOR CONTINGENCIES (TR) 6000 0

Total Disbursements/ Expenditures 4,244,836 785,680 906,589 1,381,777 720,196 1,732 245,242 0 8,286,052 8,602,033Excess (Deficiency) of Receipts/Revenues Over Disbursements/Expenditures (200,922)

INSTRUCTION (MR/SS)Regular Programs 1100 539,538 539,538 790,409Pre-K Programs 1125 0 0 0Special Education Programs (Functions 1200-1220) 1200 850,535 850,535 779,260Special Education Programs - Pre-K 1225 0 0Remedial and Supplemental Programs - K-12 1250 13,662 13,662 14,364Remedial and Supplemental Programs - Pre-K 1275 0 0Adult/Continuing Education Programs 1300 0 0CTE Programs 1400 54 54 0Interscholastic Programs 1500 9,208 9,208 0Summer School Programs 1600 15,850 15,850 0Gifted Programs 1650 193 193 0Driver's Education Programs 1700 1,151 1,151 0Bilingual Programs 1800 6,070 6,070 8,410Truants' Alternative & Optional Programs 1900 5,362 5,362 0Total Instruction 1000 1,441,623 1,441,623 1,592,443

SUPPORT SERVICES (MR/SS) 2000SUPPORT SERVICES - PUPILS

Attendance & Social Work Services 2110 11,895 11,895 0Guidance Services 2120 24,339 24,339 0Health Services 2130 14,237 14,237 0Psychological Services 2140 11,188 11,188 0Speech Pathology & Audiology Services 2150 4,601 4,601 0Other Support Services - Pupils (Describe & Itemize) 2190 0 0Total Support Services - Pupils 2100 66,260 66,260 0

SUPPORT SERVICES - INSTRUCTIONAL STAFFImprovement of Instruction Services 2210 32,323 32,323 31,309Educational Media Services 2220 57,749 57,749 54,800Assessment & Testing 2230 0 0Total Support Services - Instructional Staff 2200 90,072 90,072 86,109

50 - MUNICIPAL RETIREMENT/SOCIAL SECURITY FUND (MR/SS)



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A B C D E F G H I J K L(100) (200) (300) (400) (500) (600) (700) (800) (900)






237238239240241

242243244245246

247248249250251252

253254255256257258259260261262263264265

266267268269270271272273274275276277278279280281282

SUPPORT SERVICES - GENERAL ADMINISTRATIONBoard of Education Services 2310 0 0Executive Administration Services 2320 47,916 47,916 16,400Service Area Administrative Services 2330 8,434 8,434 0Claims Paid from Self Insurance Fund 2361 0 0Workers' Compensation or Workers' Occupation Disease Acts Payments

23620 0

Unemployment Insurance Payments 2363 0 0Insurance Payments (Regular or Self-Insurance) 2364 0 0Risk Management and Claims Services Payments 2365 0 0Judgment and Settlements 2366 0 0Educational, Inspectional, Supervisory Services Related to Loss Prevention or Reduction

23670 0

Reciprocal Insurance Payments 2368 0 0Legal Services 2369 0 0Total Support Services - General Administration 2300 56,350 56,350 16,400

SUPPORT SERVICES - SCHOOL ADMINISTRATIONOffice of the Principal Services 2410 272,929 272,929 370,080Other Support Services - School Administration (Describe & Itemize)

24900 0

Total Support Services - School Administration 2400 272,929 272,929 370,080SUPPORT SERVICES - BUSINESS

Direction of Business Support Services 2510 1,504 1,504 0Fiscal Services 2520 39,502 39,502 0Facilities Acquisition & Construction Services 2530 20,179 20,179 6,525Operation & Maintenance of Plant Services 2540 832,079 832,079 845,785Pupil Transportation Services 2550 753,586 753,586 1,105,820Food Services 2560 262,491 262,491 328,830Internal Services 2570 28,955 28,955 20,520Total Support Services - Business 2500 1,938,296 1,938,296 2,307,480

SUPPORT SERVICES - CENTRALDirection of Central Support Services 2610 0 0

Planning, Research, Development, & Evaluation Services 26200 0

Information Services 2630 10,118 10,118 10,470Staff Services 2640 39,841 39,841 0Data Processing Services 2660 73,428 73,428 106,675Total Support Services - Central 2600 123,387 123,387 117,145Other Support Services (Describe & Itemize) 2900 0 0Total Support Services 2000 2,547,294 2,547,294 2,897,214

COMMUNITY SERVICES (MR/SS) 3000 9,105 9,105 9,505PAYMENTS TO OTHER DIST & GOVT UNITS (MR/SS)

Payments for Special Education Programs 4120 0 0Payments for CTE Programs 4140 0 0Total Payments to Other Dist & Govt Units 4000 0 0 0

DEBT SERVICES (MR/SS)DEBT SERVICE - INTEREST ON SHORT-TERM DEBT

Tax Anticipation Warrants 5110 0 0Tax Anticipation Notes 5120 0 0Corporate Personal Prop. Repl. Tax Anticipation Notes 5130 0 0



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A B C D E F G H I J K L(100) (200) (300) (400) (500) (600) (700) (800) (900)






283284285286287

288289

290291292293294295296297298299300301302303304

305306

307308

309310311

312313314315316

317318319320321322323324325326

State Aid Anticipation Certificates 5140 0 0Other (Describe & Itemize) 5150 0 0Total Debt Services - Interest 5000 0 0 0

PROVISION FOR CONTINGENCIES (MR/SS) 6000 03,998,022 0 3,998,022 4,499,162

Excess (Deficiency) of Receipts/Revenues Over Disbursements/Expenditures (362,743)

SUPPORT SERVICES (CP)SUPPORT SERVICES - BUSINESS

Facilities Acquisition and Construction Services 2530 141,364 6,504,643 4,036,976 43,458,108 16,005 54,157,096 75,421,500Other Support Services (Describe & Itemize) 2900 0 0Total Support Services 2000 141,364 0 6,504,643 4,036,976 43,458,108 0 16,005 0 54,157,096 75,421,500

PAYMENTS TO OTHER DIST & GOVT UNITS (CP)PAYMENTS TO OTHER GOVT UNITS (In-State)

Payments to Other Govt Units (In-State) 4100 0 0Payments for Special Education Programs 4120 0 0Payments for CTE Programs 4140 0 0Other Payments to In-State Govt. Units (Describe & Itemize)

4190 0 0Total Payments to Other Dist & Govt Units 4000 0 0 0 0

PROVISION FOR CONTINGENCIES (S&C/CI) 6000 0141,364 0 6,504,643 4,036,976 43,458,108 0 16,005 0 54,157,096 75,421,500

(51,416,305)

SUPPORT SERVICES - GENERAL ADMINISTRATIONClaims Paid from Self Insurance Fund 2361 0 0Workers' Compensation or Workers' Occupation Disease Acts Payments

2362683,222 683,222 500,000

Unemployment Insurance Payments 2363 61,597 61,597 80,000Insurance Payments (Regular or Self-Insurance) 2364 0 0Risk Management and Claims Services Payments 2365 0 0Judgment and Settlements 2366 199,539 199,539 300,000Educational, Inspectional, Supervisory Services Related to Loss Prevention or Reduction

2367136,242 25,912 296,200 9,240 467,594 682,300

Reciprocal Insurance Payments 2368 0 0Legal Services 2369 102,996 102,996 100,000Property Insurance (Buildings & Grounds) 2371 638,019 638,019 700,000Vehicle Insurance (Transporation) 2372 199,425 199,425 240,000Total Support Services - General Administration 2000 136,242 770,731 1,236,640 9,240 0 199,539 0 0 2,352,392 2,602,300

DEBT SERVICES (TF) 5000DEBT SERVICES - INTEREST ON SHORT-TERM DEBT

Tax Anticipation Warrants 5110 0 0Corporate Personal Prop. Repl. Tax Anticipation Notes 5130 0 0

Total Disbursements/Expenditures

70 - WORKING CASH (WC)

60 - CAPITAL PROJECTS (CP)

Excess (Deficiency) of Receipts/Revenues Over Disbursements/Expenditures

Total Disbursements/ Expenditures

80 - TORT FUND (TF)



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A B C D E F G H I J K L(100) (200) (300) (400) (500) (600) (700) (800) (900)






327

328329330331332

333334335336337338339340341

342343344345346347348349

350351352353

354

Other Interest or Short-Term Debt 5150 0 0

Total Debt Services - Interest on Short-Term Debt 5000 0 0 0PROVISIONS FOR CONTINGENCIES (TF) 6000 0

Total Disbursements/Expenditures 136,242 770,731 1,236,640 9,240 0 199,539 0 0 2,352,392 2,602,300(6,008)

SUPPORT SERVICES (FP&S)SUPPORT SERVICES - BUSINESS

Facilities Acquisition & Construction Services 2530 0 0Operation & Maintenance of Plant Services 2540 150,775 1,251,788 1,402,563 1,480,000Total Support Services - Business 2500 0 0 150,775 0 1,251,788 0 0 0 1,402,563 1,480,000Other Support Services (Describe & Itemize) 2900 0 0Total Support Services 2000 0 0 150,775 0 1,251,788 0 0 0 1,402,563 1,480,000

PAYMENTS TO OTHER DIST & GOVT UNITS (FP&S)Other Payments to In-State Govt. Units (Describe & Itemize)

41900 0

Total Payments to Other Dist & Govt Units 4000 0 0 0DEBT SERVICES (FP&S)

DEBT SERVICES- INTEREST ON SHORT-TERM DEBTTax Anticipation Warrants 5110 0 0Other Interest on Short-Term Debt (Describe & Itemize) 5150 0 0Total Debt Service - Interest on Short-Term Debt 5100 0 0 0

DEBT SERVICES - INTEREST ON LONG-TERM DEBT 5200 0 0Debt Service - Payments of Principal on Long-Term Debt 15 (Lease/Purchase Principal Retired)

53000 0

Total Debt Service 5000 0 0 0PROVISION FOR CONTINGENCIES (FP&S) 6000 0

Total Disbursements/Expenditures 0 0 150,775 0 1,251,788 0 0 0 1,402,563 1,480,000Excess (Deficiency) of Receipts/Revenues Over Disbursements/Expenditures (11,880)

90 - FIRE PREVENTION & SAFETY FUND (FP&S)

Excess (Deficiency) of Receipts/Revenues Over Disbursements/Expenditures


FEDERAL STIMULUS - AMERICAN RECOVERY AND REINVESTMENT ACT (ARRA) of 2009(Detailed Schedule of Receipts and Disbursements)

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101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354

5556

A B C D E F G H I J K L----RECEIPTS----

(100) (200) (300) (400) (500) (600) (700) (800) (900)

ARRA Revenue Source Code Acct # ARRA Receipts Salaries Employee


Supplies & Materials Capital Outlay Other Non-Capitalized


BenefitsTotal

Expenditures

Beginning Balance July 1, 2009ARRA - General State Aid 4850 2,318,428 2,318,428 2,318,428ARRA - Title I Low Income 4851 374,381 245,760 79,201 8,361 333,322ARRA - Title I Neglected - Private 4852 0 0ARRA - Title I Delinquent - Private 4853 26,900 8,498 8,498ARRA - Title I School Improvement (Part A) 4854 0 0ARRA - Title I School Improvement (Section 1003g) 4855 0 0ARRA - IDEA Part B Preschool 4856 0 0ARRA - IDEA Part B Flow Through 4857 0 0ARRA - Title II D Technology Formula 4860 0 0ARRA - Title II D Technology Competitive 4861 0 0ARRA - McKenney - Vento Homeless Education 4862 0 0ARRA - Child Nutrition Equipment Assistance 4863 0 0Impact Aid Construction Formula 4864 0 0Impact Aid Construction Competitive 4865 0 0QZAB Tax Credits 4866 0 0QSCB Tax Credits 4867 0 0Build America Bonds Tax Credits 4868 0 0Build America Bonds Interest Reimbursement 4869 0 0ARRA - General State Aid - Other Govt Services Stabilization 4870 771,099 771,099 771,099ARRA - Other II 4871 0 0ARRA - Other III 4872 0 0ARRA - Other IV 4873 0 0ARRA - Other V 4874 0 0ARRA - Early Childhood 4875 0 0ARRA - Other VII 4876 0 0ARRA - Other VIII 4877 0 0ARRA - Other IX 4878 0 0ARRA - Other X 4879 0 0ARRA - Other XI 4880 0 0

Total ARRA Programs 3,490,808 3,335,287 79,201 8,361 0 8,498 0 0 3,431,347Ending Balance June 30, 2010 59,461

1. Were any funds from the State Fiscal Stabilization Fund Program (SFSF) General State-Aid Accounts 4850, line 5 & 4870, line 23).used for the following non-allowable purposes:

Payments of maintenance costs;Stadiums or other facilities used for athletic contests, exhibitions or other events for which admission is charged to the general public;Purchase or upgrade of vehicles;Improvements of stand-alone facilities whose purpose is not the education of children such as central office administrative buildings; Financial assistance to students to attend private elementary or secondary schools unless the funds are used to provide special education and related services to children with disabilities as authorized by the IDEA Act;School modernization, renovation, or repair that is inconsistent with State Law.

2. If any above boxes are checked provide the total amountof questioned costs and provide an explanation below:

-------------------------------------------------------------------------------------------DISBURSEMENTS------------------------------------------------------------------------------------District's Accounting Basis is CASH

\\cgfile05\EngLFR\LFRCITRIX\{90A4EFDA-0945-42D0-BAF9-ED2DB8C8AFB0}\{1C34164E-F6F8-45F3-9A43-2AB714DCE9C5}\{D36FD255-3D53-4BA5-BBD7-9DD1B3A640E8}.xls, 11/11/2010

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A B C D E F

SCHEDULE OF AD VALOREM TAX RECEIPTS

DescriptionTaxes Received

7-1-09 Thru 6-30-10 (from 2009 Levy & Prior

Levies) *

Taxes Received (from the 2009 Levy)

Taxes Received (from 2008 & Prior

Levies)

Total Extimated Taxes (from the 2009 Levy)

Estimated Taxes Due (from the 2009 Levy)

(Column B - C) (Column E - C)Educational 52,981,793 27,311,548 25,670,245 54,244,370 26,932,822Operations & Maintenance 9,889,232 5,020,467 4,868,765 9,971,316 4,950,849Debt Services ** 15,783,475 8,259,080 7,524,395 16,403,633 8,144,553Transportation 3,955,733 2,008,227 1,947,506 3,988,607 1,980,380Municipal Retirement/Social Security 1,391,638 742,945 648,693 1,475,588 732,643Capital Improvements 0 0 0 0 0Working Cash 989,383 502,512 486,871 998,056 495,544Tort Immunity 2,311,356 1,155,636 1,155,720 2,295,247 1,139,611Fire Prevention & Safety 989,383 502,512 486,871 998,056 495,544Leasing Levy 990,584 502,512 488,072 998,056 495,544Special Education 792,429 401,969 390,460 798,364 396,395Area Vocational Construction 0 0 0 0 0Social Security/Medicare Only 2,092,810 1,062,275 1,030,535 2,109,819 1,047,544Summer School 0 0 0 0 0Other (Describe & Itemize) 0 0 0 0 0

Totals 92,167,816 47,469,683 44,698,133 94,281,112 46,811,429

* The formulas in column B are unprotected to be overidden when reporting on a ACCRUAL basis.** All tax receipts for debt service payments on bonds must be recorded on line 6 (Debt Services).


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232425262728

29

3031323334353637383940414243444546474849505152535455

A B C D E F G H I J

Outstanding Beginning 07/01/09

Issued 07/01/09 Through 06/30/10

Retired 07/01/09 Through 06/30/10

Outstanding Ending 06/30/10

0 0

Educational Fund 0 0Operations & Maintenance Fund 0 0Debt Services - Construction 0 0Debt Services - Working Cash 0 0Debt Services - Refunding Bonds 0 0Transportation Fund 0 0Municipal Retirement/Social Security Fund 0 0Fire Prevention & Safety Fund 0 0Other - (Describe & Itemize) 0 0

0 0 0 0

0 14,650,000 700,000 13,950,0000 2,600,000 400,000 2,200,0000 00 2,020,000 500,000 1,520,0000 19,270,000 1,600,000 17,670,000

0

0

0

Identification or Name of Issue Date of Issue (mm/dd/yy)

Amount of Original Issue Type of Issue * Outstanding 07/1/09 Issued 7/1/09 thru

6/30/10Difference With page 7, line 32

Retired 7/1/09 thru 6/30/10

Outstanding 6/30/10

Amount to be Provided for

Payment on Long-Term Debt

General Obligation Building Bonds, Series 1998A 06/01/98 21,930,000 3 & 6 5,085,000 4,820,000 265,000 265,000General Obligation School, Series 2000 06/01/00 92,610,000 6 26,320,000 26,320,000 25,089,969Refunding Bonds 02/01/05 64,200,000 3 61,625,000 490,000 61,135,000 56,803,770General Obligation School Bonds, Series 2008 04/28/08 82,260,000 3 & 6 82,260,000 1,630,000 80,630,000 79,282,083General Obligation School Bonds, Series 2009 03/10/09 31,700,000 3 & 6 31,700,000 31,700,000 30,107,8831999 Lease Certificates 12/01/99 4,500,000 7 210,000 210,000 0 02002 Lease Certificates 09/01/02 3,500,000 7 2,855,000 150,000 2,705,000 2,705,0002009 Lease Certificates 03/10/09 3,195,000 7 3,195,000 20,000 3,175,000 3,175,000Capital Leases Various 8 1,779,981 448,724 0 1,622,773 605,932 605,932

000000000

303,895,000 215,029,981 448,724 0 8,942,773 206,535,932 198,034,637

* Each type of debt issued must be identified separately with the amount:1. Working Cash Fund Bonds 7. Other 2. Funding Bonds 5. Tort Judgment Bonds 8. Other 3. Refunding Bonds 6. Building Bonds 9. Other

Total T/EOs (Educational, Operations & Maintenance, & Transportation Funds)

SCHEDULE OF SHORT-TERM DEBT

Description

Educational FundOperations & Maintenance FundFire Prevention & Safety Fund

TAX ANTICIPATION WARRANTS (TAW)

Total TAWs

CORPORATE PERSONAL PROPERTY REPLACEMENT TAX ANTICIPATION NOTES (CPPRT)

TAX ANTICIPATION NOTES (TAN)

Total CPPRT Notes

Other - (Describe & Itemize)Total TANs

TEACHERS'/EMPLOYEES' ORDERS (T/EO)

Capital Leases

Total GSAACs (All Funds)OTHER SHORT-TERM BORROWING

Total Other Short-Term Borrowing (Describe & Itemize)

SCHEDULE OF LONG-TERM DEBT

GENERAL STATE-AID ANTICIPATION CERTIFICATES (GSAAC)

4. Fire Prevent, Safety, Environmental and Energy Bonds Lease Certificates

Printed: 11/11/2010, {D36FD255-3D53-4BA5-BBD7-9DD1B3A640E8}.xls

Schedule of Restricted Local Tax Levies and Selected Revenues Sources Schedule of Tort Immunity Expenditures

2009-10

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464748

A B C D E F G H I J K

Account No Tort Immunity a Special Education Area Vocational Construction

School Facility Occupation

Taxes bDriver Education

10, 20, 40 or 50-1100 792,429Earnings on Investments 10, 20, 40, 50 or 60-1500Drivers' Education Fees 10-1970 90,614School Facility Occupation Tax Proceeds 30 or 60-1983 0Driver Education 10 or 20-3370 99,962

--10, 20, 40 or 60-7200

Total Receipts 0 792,429 0 0 190,576

10 or 50-1000 792,429 103,48420 or 60-2530

10, 20, 40-2360-2370DEBT SERVICE

30-5200

30-5300

30-5400Total Debt Services 0

--Total Disbursements 0 792,429 0 0 103,484Ending Cash Basis Fund Balance as of June 30, 2010 0 0 0 0 87,092Reserved Fund Balance 714Unreserved Fund Balance 730 0 0 0 0 87,092

SCHEDULE OF TORT IMMUNITY EXPENDITURES a

Yes No Has the entity established an insurance reserve pursuant to 745 ILCS 10/9-103?If yes, list in the aggregate the following: Total Claims Payments:

Total Reserve Remaining: Using the following categories, list all other Tort Immunity expenditures not included in line 30 above. Include the total dollar amount for each category.Expenditures:

Workers' Compensation Act and/or Workers' Occupational Disease ActUnemployment Insurance ActInsurance (Regular or Self-Insurance)Risk Management and Claims ServiceJudgments/Settlements

Reciprocal Insurance Payments (Insurance Code 72, 76, and 81)Legal ServicesPrincipal and Interest on Tort Bonds

a Schedules for Tort Immunity are to be completed only if expenditures have been reported in any fund other than the Tort Immunity Fund (80) during FY10 as a result of existing (restricted) fund balancesin those other funds that are being spent down. Cell G6 above should include interest earnings only from these restricted tort immunity monies and only if reported in a fund other than Tort Immunity Fund (80).

b 55 ILCS 5/5-1006.7

Educational, Inspectional, Supervisory Services Related to Loss Prevention and/or Reduction

Description

Cash Basis Fund Balance as of July 1, 2009RECEIPTS:

DISBURSEMENTS:

SCHEDULE OF RESTRICTED LOCAL TAX LEVIES AND SELECTED REVENUE SOURCES

Ad Valorem Taxes Received by District

Sale of BondsOther Receipts (Describe & Itemize on tab "Itemization 32")

InstructionFacilities Acquisition & Construction ServicesTort Immunity Services

Other Disbursements (Describe & Itemize on tab "Itemization 32")

Debt Services - Payments of Principal on Long-Term Debt (Lease/Purchase Principal Retired)

Debt Services - Interest on Long-Term Debt

Debt Services Other (Describe & Itemize on tab "Itemization 32")

Printed: 11/11/2010, {D36FD255-3D53-4BA5-BBD7-9DD1B3A640E8}.xls

Page 27

12

3

456789

1011

121314151617181920

A B C D E F G H I J K L

Schedule of Capital Outlay and Depreciation

Description of Assets Acct # Cost 7-1-09 Add: Additions

2009-10

Less: Deletions 2009-

10Cost 6-30-10 Life In

Years

Accumulated Depreciation

7-1-09

Add: Depreciation

Allowable 2009-10

Less: Depreciation

Deletions 2009-10

Accumulated Depreciation

6-30-10

Balance Undepreciated

6-30-10

Works of Art & Historical Treasures 210 0 0 0Land 220

Non-Depreciable Land 221 4,082,669 4,082,669 4,082,669Depreciable Land 222 0 50 0 0

Buildings 230Permanent Buildings 231 164,234,477 2,260,480 166,494,957 50 38,779,216 3,329,899 42,109,115 124,385,842Temporary Buildings 232 0 25 0 0Improvements Other than Buildings (Infrastructure) 240 320,389 1,084 319,305 20 78,227 15,965 1,084 93,108 226,197

Capitalized Equipment 25010 Yr Schedule 251 13,283,814 2,435,993 2,402,700 13,317,107 10 8,410,189 1,331,711 2,402,700 7,339,200 5,977,9075 Yr Schedule 252 10,168,627 1,382,517 6,062,943 5,488,201 5 8,201,378 951,229 6,062,943 3,089,664 2,398,5373 Yr Schedule 253 0 3 0 0

Construction in Progress 260 0 40,221,016 40,221,016 -- 40,221,016Total Capital Assets 200 192,089,976 46,300,006 8,466,727 229,923,255 55,469,010 5,628,804 8,466,727 52,631,087 177,292,168

Non-Capitalized Equipment 700 531,569 10 53,157Allowable Depreciation 5,681,961


Page 28

12345678910111213141516171819202122232425262728293031323334353637383940414243444546474849505152535455565758596061626364656667686970717273747576777879

A B C D E F G

Fund Sheet, Row ACCOUNT NO - TITLE Amount

EXPENDITURES:ED Expenditures 15-22, L113 Total Expenditures $ 91,852,581O&M Expenditures 15-22, L149 Total Expenditures 10,248,757DS Expenditures 15-22, L167 Total Expenditures 18,414,901TR Expenditures 15-22, L203 Total Expenditures 8,286,052MR/SS Expenditures 15-22, L287 Total Expenditures 3,998,022TORT Expenditures 15-22, L330 Total Expenditures 2,352,392

Total Expenditures $ 135,152,705

LESS RECEIPTS/REVENUES OR DISBURSEMENTS/EXPENDITURES NOT APPLICABLE TO THE REGULAR K-12 PROGRAM:

TR Revenues 9-14, L43, Col F 1412 Regular - Transp Fees from Other Districts (In State) $ 36,476TR Revenues 9-14, L47, Col F 1421 Summer Sch - Transp. Fees from Pupils or Parents (In State) 0TR Revenues 9-14, L48, Col F 1422 Summer Sch - Transp. Fees from Other Districts (In State) 0TR Revenues 9-14, L49, Col F 1423 Summer Sch - Transp. Fees from Other Sources (In State) 0TR Revenues 9-14, L50 Col F 1424 Summer Sch - Transp. Fees from Other Sources (Out of State) 0TR Revenues 9-14, L52, Col F 1432 CTE - Transp Fees from Other Districts (In State) 0TR Revenues 9-14, L56, Col F 1442 Special Ed - Transp Fees from Other Districts (In State) 0TR Revenues 9-14, L59, Col F 1451 Adult - Transp Fees from Pupils or Parents (In State) 0TR Revenues 9-14, L60, Col F 1452 Adult - Transp Fees from Other Districts (In State) 0TR Revenues 9-14, L61, Col F 1453 Adult - Transp Fees from Other Sources (In State) 0TR Revenues 9-14, L62, Col F 1454 Adult - Transp Fees from Other Sources (Out of State) 0O&M Revenues 9-14, L148, Col D 3410 Adult Ed (from ICCB) 0O&M-TR Revenues 9-14, L149, Col D & F 3499 Adult Ed - Other (Describe & Itemize) 0O&M-TR Revenues 9-14, L218, Col D,F 4600 Fed - Spec Education - Preschool Flow-Through 0O&M-TR Revenues 9-14, L219, Col D,F 4605 Fed - Spec Education - Preschool Discretionary 0O&M Revenues 9-14, L229, Col D 4810 Federal - Adult Education 0ED Expenditures 15-22, L6, Col K - (G+I) 1125 Pre-K Programs 0ED Expenditures 15-22, L8, Col K - (G+I) 1225 Special Education Programs Pre-K 0ED Expenditures 15-22, L10, Col K - (G+I) 1275 Remedial and Supplemental Programs Pre-K 0ED Expenditures 15-22, L11, Col K - (G+I) 1300 Adult/Continuing Education Programs 0ED Expenditures 15-22, L14, Col K - (G+I) 1600 Summer School Programs 60,926ED Expenditures 15-22, L19, Col K 1910 Pre-K Programs - Private Tuition 0ED Expenditures 15-22, L20, Col K 1911 Regular K-12 Programs - Private Tuition 0ED Expenditures 15-22, L21, Col K 1912 Special Education Programs K-12 - Private Tuition 4,093,492ED Expenditures 15-22, L22, Col K 1913 Special Education Programs Pre-K - Tuition 0ED Expenditures 15-22, L23, Col K 1914 Remedial/Supplemental Programs K-12 - Private Tuition 0ED Expenditures 15-22, L24, Col K 1915 Remedial/Supplemental Programs Pre-K - Private Tuition 0ED Expenditures 15-22, L25, Col K 1916 Adult/Continuing Education Programs - Private Tuition 0ED Expenditures 15-22, L26, Col K 1917 CTE Programs - Private Tuition 0ED Expenditures 15-22, L27, Col K 1918 Interscholastic Programs - Private Tuition 0ED Expenditures 15-22, L28, Col K 1919 Summer School Programs - Private Tuition 0ED Expenditures 15-22, L29, Col K 1920 Gifted Programs - Private Tuition 0ED Expenditures 15-22, L30, Col K 1921 Bilingual Programs - Private Tuition 0ED Expenditures 15-22, L31, Col K 1922 Truants Alternative/Optional Ed Progms - Private Tuition 0ED Expenditures 15-22, L74, Col K - (G+I) 3000 Community Services 187,957ED Expenditures 15-22, L101, Col K 4000 Total Payments to Other District & Govt Units 769,980ED Expenditures 15-22, L113, Col G - Capital Outlay 840,914ED Expenditures 15-22, L113, Col I - Non-Capitalized Equipment 245,735O&M Expenditures 15-22, L129, Col K - (G+I) 3000 Community Services 0O&M Expenditures 15-22, L137, Col K 4000 Total Payments to Other Dist & Govt Units 0O&M Expenditures 15-22, L149, Col G - Capital Outlay 29,000O&M Expenditures 15-22, L149, Col I - Non-Capitalized Equipment 24,587DS Expenditures 15-22, L153, Col K 4000 Payments to Other Dist & Govt Units 0DS Expenditures 15-22, L163, Col K 5300 Debt Service - Payments of Principal on Long-Term Debt 7,856,813TR Expenditures 15-22, L178, Col K - (G+I) 3000 Community Services 0TR Expenditures 15-22, L189, Col K 4000 Total Payments to Other Dist & Govt Units 0TR Expenditures 15-22, L199, Col K 5300 Debt Service - Payments of Principal on Long-Term Debt 0TR Expenditures 15-22, L203, Col G - Capital Outlay 720,196TR Expenditures 15-22, L203, Col I - Non-Capitalized Equipment 245,242MR/SS Expenditures 15-22, L209, Col K 1125 Pre-K Programs 0MR/SS Expenditures 15-22, L211, Col K 1225 Special Education Programs - Pre-K 0MR/SS Expenditures 15-22, L213, Col K 1275 Remedial and Supplemental Programs - Pre-K 0MR/SS Expenditures 15-22, L214, Col K 1300 Adult/Continuing Education Programs 0MR/SS Expenditures 15-22, L217, Col K 1600 Summer School Programs 15,850MR/SS Expenditures 15-22, L273, Col K 3000 Community Services 9,105MR/SS Expenditures 15-22, L277, Col K 4000 Total Payments to Other Dist & Govt Units 0

Total Deductions $ 15,136,273Total Operating Expenses (Regular K-12) 120,016,432

9 Mo ADA (See the General State Aid Claim for 2010-2011 (ISBE 54-33, L12) 12,019.00Estimated OEPP $ 9,985.56

OPERATING EXPENSE PER PUPIL

ESTIMATED OPERATING EXPENSE PER PUPIL (OEPP)/PER CAPITA TUITION CHARGE (PCTC) COMPUTATIONS (2009-10)This schedule is completed for school districts only.


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A B C D E F G

Fund Sheet, Row ACCOUNT NO - TITLE Amount

ESTIMATED OPERATING EXPENSE PER PUPIL (OEPP)/PER CAPITA TUITION CHARGE (PCTC) COMPUTATIONS (2009-10)This schedule is completed for school districts only.

8081828384858687888990919293949596979899100101102103104105106107108109110111112113114115116117118119120121122123124125126127128129130131132133134135

160161162163164165166167168169170171172173174175176177178179

LESS OFFSETTING RECEIPTS/REVENUES:TR Revenues 9-14, L42, Col F 1411 Regular -Transp Fees from Pupils or Parents (In State) $ 0TR Revenues 9-14, L44, Col F 1413 Regular - Transp Fees from Other Sources (In State) 0TR Revenues 9-14, L45, Col F 1415 Regular - Transp Fees from Co-curricular Activities (In State) 9,995TR Revenues 9-14, L46, Col F 1416 Regular Transp Fees from Other Sources (Out of State) 0TR Revenues 9-14, L51, Col F 1431 CTE - Transp Fees from Pupils or Parents (In State) 0TR Revenues 9-14, L53, Col F 1433 CTE - Transp Fees from Other Sources (In State) 0TR Revenues 9-14, L54, Col F 1434 CTE - Transp Fees from Other Sources (Out of State) 0TR Revenues 9-14, L55, Col F 1441 Special Ed - Transp Fees from Pupils or Parents (In State) 0TR Revenues 9-14, L57, Col F 1443 Special Ed - Transp Fees from Other Sources (In State) 0TR Revenues 9-14, L58, Col F 1444 Special Ed - Transp Fees from Other Sources (Out of State) 0ED Revenues 9-14, L75, Col C 1600 Total Food Service 3,214,674ED-O&M Revenues 9-14, L82, Col C,D 1700 Total District/School Activity Income 300,831ED Revenues 9-14, L84, Col C 1811 Rentals - Regular Textbooks 1,132,399ED Revenues 9-14, L87, Col C 1819 Rentals - Other (Describe & Itemize) 0ED Revenues 9-14, L88, Col C 1821 Sales - Regular Textbooks 0ED Revenues 9-14, L91, Col C 1829 Sales - Other (Describe & Itemize) 0ED Revenues 9-14, L92, Col C 1890 Other (Describe & Itemize) 0ED-O&M Revenues 9-14, L95, Col C,D 1910 Rentals 81,526ED-O&M-TR Revenues 9-14, L98, Col C,D,F 1940 Services Provided Other Districts 0ED-O&M-DS-TR-MR/SS Revenues 9-14, L104, Col C,D,E,F,G 1991 Payment from Other Districts 0ED Revenues 9-14, L106, Col C 1993 Other Local Fees 0ED-O&M-TR Revenues 9-14, L131, Col C,D,F 3100 Total Special Education 5,099,038ED-O&M-MR/SS Revenues 9-14, L133, Col C,D,G 3200 Total Career and Technical Education 0ED-MR/SS Revenues 9-14, L144, Col C,G 3300 Total Bilingual Ed 84,772ED Revenues 9-14, L145, Col C 3360 State Free Lunch & Breakfast 46,284ED-O&M-MR/SS Revenues 9-14, L146, Col C,D,G 3365 School Breakfast Initiative 833ED-O&M Revenues 9-14, L147,Col C,D 3370 Driver Education 99,962ED-O&M-TR-MR/SS Revenues 9-14, L154, Col C,D,F,G 3500 Total Transportation 4,068,357ED Revenues 9-14, L155, Col C 3610 Learning Improvement - Change Grants 0ED-O&M-TR-MR/SS Revenues 9-14, L156, Col C,D,F,G 3660 Scientific Literacy 0ED-TR-MR/SS Revenues 9-14, L157, Col C,F,G 3695 Truant Alternative/Optional Education 0ED-TR-MR/SS Revenues 9-14, L159, Col C,F,G 3715 Reading Improvement Block Grant 165,487ED-TR-MR/SS Revenues 9-14, L160, Col C,F,G 3720 Reading Improvement Block Grant - Reading Recovery 0ED-TR-MR/SS Revenues 9-14, L161, Col C,F,G 3725 Continued Reading Improvement Block Grant 0ED-TR-MR/SS Revenues 9-14, L162, Col C,F,G 3726 Continued Reading Improvement Block Grant (2% Set Aside) 0ED-O&M-TR-MR/SS Revenues 9-14, L163, Col C,D,F,G 3766 Chicago General Education Block Grant 0ED-O&M-TR-MR/SS Revenues 9-14, L164, Col C,D,F,G 3767 Chicago Educational Services Block Grant 0ED-O&M-DS-TR-MR/SS Revenues 9-14, L165, Col C,D,E,F,G 3775 School Safety & Educational Improvement Block Grant 54,278ED-O&M-DS-TR-MR/SS Revenues 9-14, L166, Col C,D,E,F,G 3780 Technology - Learning Technology Centers 0ED-TR Revenues 9-14, L167, Col C,F 3815 State Charter Schools 13,989O&M Revenues 9-14, L170, Col D 3925 School Infrastructure - Maintenance Projects 0ED-O&M-DS-TR-MR/SS-Tort Revenues 9-14, L171, Col C-G,J 3999 Other Restricted Revenue from State Sources 379,110ED Revenues 9-14, L180, Col C 4045 Head Start (Subtract) 0ED-O&M-TR-MR/SS Revenues 9-14, L184, Col C,D,F,G - Total Restricted Grants-In-Aid Received Directly from Federal Govt 0ED-O&M-TR-MR/SS Revenues 9-14, L191, Col C,D,F,G - Total Title V 0ED-MR/SS Revenues 9-14, L201, Col C,G - Total Food Service 1,482,090ED-O&M-TR-MR/SS Revenues 9-14, L211, Col C,D,F,G - Total Title I 1,205,445ED-O&M-TR-MR/SS Revenues 9-14, L216, Col C,D,F,G - Total Title IV 33,789ED-O&M-TR-MR/SS Revenues 9-14, L220, Col C,D,F,G 4620 Fed - Spec Education - IDEA - Flow Through/Low Incidence 0ED-O&M-TR-MR/SS Revenues 9-14, L221, Col C,D,F,G 4625 Fed - Spec Education - IDEA - Room & Board 462,849ED-O&M-TR-MR/SS Revenues 9-14, L222, Col C,D,F,G 4630 Fed - Spec Education - IDEA - Discretionary 0ED-O&M-TR-MR/SS Revenues 9-14, L223, Col C,D,F,G 4699 Fed - Spec Education - IDEA - Other (Describe & Itemize) 0ED-O&M-MR/SS Revenues 9-14, L228, Col C,D,G 4700 Total CTE - Perkins 10,400

ED-O&M-DS-TR-MR/SS-Tort Revenue Adjustments within range of C232 thru J259 4800 Total ARRA Program Adjustments 401,281

ED,O&M,MR/SS Revenues 9-14, L260, Col C,D,G 4904 Advanced Placement Fee/International Baccalaureate 0ED-TR-MR/SS Revenues 9-14, L261, Col C,F,G 4905 Emergency Immigrant Assistance 1,085ED-TR-MR/SS Revenues 9-14, L262, Col C,F,G 4909 Title III - English Language Acquisition 11,100ED-TR-MR/SS Revenues 9-14, L263, Col C,F,G 4910 Learn & Serve America 0ED-O&M-TR-MR/SS Revenues 9-14, L264, Col C,D,F,G 4920 McKinney Education for Homeless Children 0ED-O&M-TR-MR/SS Revenues 9-14, L265, Col C,D,F,G 4930 Title II - Eisenhower Professional Development Formula 0ED-O&M-TR-MR/SS Revenues 9-14, L266, Col C,D,F,G 4932 Title II - Teacher Quality 452,375ED-O&M-TR-MR/SS Revenues 9-14, L267, Col C,D,F,G 4960 Federal Charter Schools 0ED-O&M-TR-MR/SS Revenues 9-14, L268, Col C,D,F,G 4991 Medicaid Matching Funds - Administrative Outreach 67,807ED-O&M-TR-MR/SS Revenues 9-14, L269, Col C,D,F,G 4992 Medicaid Matching Funds - Fee-for-Service Program 0ED-O&M-TR-MR/SS Revenues 9-14, L270, Col C,D,F,G 4998 Other Restricted Revenue from Federal Sources (Describe & Itemize) 50,662

Total Allowance for PCTC Computation $ 18,930,418Net Operating Expense for PCTC Computation 101,086,014

Total Depreciation Allowance (from page 27, Col I) 5,681,961Total Allowance for PCTC Computation 106,767,975

9 Mo ADA 12,019.00Total Estimated PCTC $ 8,883.27

PER CAPITA TUITION CHARGE


ESTIMATED INDIRECT COST DATAPage 30

1234

56789

10

1112131415161718192021222324252627282930313233343536373839404142434445

A B C D E F G H

ESTIMATED INDIRECT COST RATE DATA

SECTION I Financial Data To Assist Indirect Cost Rate Determination PROGRAM YEAR 2012(Source document for the computation of the Indirect Cost Rate is found in the "Expenditures 15-22" tab.)

Support Services - Direct Costs (1-2000) and (5-2000)Direction of Business Support Services (1-2510) and (5-2510) Fiscal Services (1-2520) and (5-2520)Operation and Maintenance of Plant Services (1, 2, and 5-2540) Food Services (1-2560) Must be less than (P16, Col E-F, L62) 1,349,614

247,763Internal Services (1-2570) and (5-2570)Staff Services (1-2640) and (5-2640)Data Processing Services (1-2660) and (5-2660)

SECTION IIEstimated Indirect Cost Rate for Federal Program Year 2012 (Data subject to adjustment for "carry-forward" or "termination benefit" totals)

Restricted Program Unrestricted ProgramFunction Indirect Costs Direct Costs Indirect Costs Direct Costs

Instruction 1000 68,738,657 68,738,657Support Services:

Pupil 2100 4,075,911 4,075,911Instructional Staff 2200 4,505,428 4,505,428General Admin. 2300 3,301,853 3,301,853School Admin 2400 5,301,340 5,301,340

Business:Direction of Business Spt. Srv. 2510 233,390 0 233,390 0Fiscal Services 2520 321,286 0 321,286 0Oper. & Maint. Plant Services 2540 10,693,155 10,693,155 0Pupil Transportation 2550 8,074,200 8,074,200Food Services 2560 2,924,409 2,924,409Internal Services 2570 624,651 0 624,651 0

Central:Direction of Central Spt. Srv. 2610 0 0Plan, Rsrch, Dvlp, Eval. Srv. 2620 8,000 8,000Information Services 2630 81,090 81,090Staff Services 2640 803,361 0 803,361 0Data Processing Services 2660 2,247,821 0 2,247,821 0

Other: 2900 12,960 12,960Community Services 3000 197,062 197,062

Total 4,230,509 107,914,065 14,923,664 97,220,910Unrestricted Rate

Total Indirect Costs: 4,230,509 Total Indirect costs: 14,923,664Total Direct Costs: 107,914,065 Total Direct Costs: 97,220,910

= 3.92% = 15.35%

ALL OBJECTS EXCLUDE CAPITAL OUTLAY. With the exception of line 12, enter the disbursements/expenditures included within the following functions charged directly to and reimbursed from federal grant programs. Also, include all amounts paid to or for other employees within each function that work with specific federal grant programs in the same capacity as those charged to and reimbursed from the same federal grant programs. For example, if a district received funding for a Title I clerk, all other salaries for Title I clerks performing like duties in that function must be included. Include any benefits and/or purchased services paid on or to persons whose salaries are classified as direct costs in the function listed.

Restricted Rate

Value of Commodities Received for Fiscal Year 2010 (Include the value of commodities when determining if an A-133 is required) .

COUNTDISTRICT NAMECODEDISTRICT NUMBERSTREET


Page 31

ILLINOIS STATE BOARD OF EDUCATIONSchool Business Services Division (N-330)

100 North First StreetSpringfield, IL 62777-0001

LIMITATION OF ADMINISTRATIVE COSTS WORKSHEET School District Name:RCDT Number:

Actual Expenditures, Fiscal Year 2010 Budgeted Expenditures, Fiscal Year 2011(10) (20) (10) (20)

Funct. No. Educational Fund Operations &

Maintenance Fund Total Educational Fund Operations & Maintenance Fund Total

1. Executive Administration Services 2320 916,216 916,216 674,497 674,4972. Special Area Administration Services 2330 6,000 6,000 0 03. Other Support Services - School Administration 2490 0 0 0 04. Direction of Business Support Services 2510 231,886 0 231,886 207,521 0 207,5215. Internal Services 2570 595,696 595,696 559,160 559,1606. Direction of Central Support Services 2610 0 0 0 07. 0 0 0 0

8. Totals 1,749,798 0 1,749,798 1,441,178 0 1,441,178

9. -18%

CERTIFICATIONI certify that the amounts shown above as "Actual Expenditures, Fiscal Year 2010" agree with the amounts on the district's Annual Financial Report for Fiscal Year 2010. I also certify that the amounts shown above as "Budgeted Expenditures, Fiscal Year 2011" agree with the amounts on the budget adopted by the Board of Education.

(Date)

If line 9 is greater than 5% please check one box below.The District is ranked by ISBE in the lowest 25th percentile of like districts in administrative expenditures per student (4th quartile) and will waive the limitation by board action, subsequent to a public hearing. Waiver resolution must be adopted no later than June 30.

The district will amend their budget to become in compliance with the limitation. Budget amendments must be adopted no later than June 30.

Signature of Superintendent

The district is unable to waive the limitation by board action and will be requesting a waiver from the General Assembly pursuant to the procedures in Chapter 115 ILCS 5/2-3.25g. Waiver applications must be postmarked by August 13, 2010 to ensure inclusion in the October 1, 2010 report, postmarked by January 7, 2011 to ensure inclusion in the March 1, 2011 report, or postmarked by August 12, 2011 to ensure inclusion in the October 1, 2011 report. Information on the waiver process can be found at www.isbe.net/isbewaivers/default.htm.

Percent Increase (Decrease) for FY2011 (Budgeted) over FY2010 (Actual)

McLean County Unit School District No. 5(Section 17-1.5 of the School Code) 17-064-0050-26

Description

Deduct - Early Retirement or other pension obligations required by state law and included above.

www.isbe.net/isbewaivers/default.htm.

Page 32

This page is provided for detailed itemizations as requested within the body of the report.Type Below.

1. Page 5, Line 12 - Capital Projects Fund, Line 12 - Other current assets - Deposits $20,0002. Page 10, Line 74 - Other Food Service Revenue - Food sales to outside groups3. Page 10 - Educational Fund, Line 78 - Admissions - Other - Drama $5604. Page 11, Line 107 - Other Local Revenue

Educational Fund - Fines, Sales of Books, Miscellaneous reimbursements $36,000Operations and Maintenance Fund - E-rate and custodial reimbursements $359,036Transportation Fund - Miscellaneous $45Tort Fund - Other revenue related to District's insuranceFire Prevention Fund - Lawsuit out of court settlement

5. Page 12, Line 153 - Transportation Fund - Transportation - other - Fuel Rebate $26,4416. Page 12, Line 171 - $237,472 Teacher & Administrators Mentoring Program grant; $8,013 other state programs, $133,625 Orphanage Tuition7. Page 14, Line 270 - $42,457 STEP program federal revenues; $8,205 Technology Enhancement; $10,400 PCCS flow through8. Page 15, Line 40 - Other Support Services - Pupils Positive Behavioral Interventional Strategy9. Page 16, Line 72 - Stipend to teachers resulting from decrease in insurance costs

10. Page 16, Line 82 - $23,221 to outside facility for private school student assitance; $26,224 TRS reimbursement for fiscal year 2009 Title II11. Page 18, Line 164 - Bond Service Fees12. Page 25 - Schedule of Short-Term Debt

Tax anticipation notes - Line 20- Other Debt Services Fund Transportation FundIssued 07/01/09 through 06/30/10 100,000 1,920,000Retired 07/01/09 through 06/30/10 (100,000) (400,000)

Outstanding Ending 06/30/10 -0- 1,520,000

13. Page 25 - Schedule of Long-Term Debt Bond Principal Issued (Col F, Line 49) includes capital lease Bond Principal Retired (Col H, Line 49) includes lease certificates and capital leasesAudit check errors are due to lease certificates and capital leases not paid from the debt service fund.

14. Page 27, Line 10, Permanent Buildings, Cost 7-1-09This line has been restated from the prior year. Previous payments on Geo-thermal projects were not included in capital assets inthe prior year. This balance has been increased by $1,233,139 to include the cost of these capital assets.

McLean County Unit School District No. 517-064-0050-26

Page 33

Reference Pages.

1 Do not enter negative numbers. Reports with negative numbers will be returned for correction.2 GASB Statement No. 24; Accounting and Financial Reporting for Certain Grants and Other Financial Assistance. The "On Behalf of" Payments should only be reflected

on this page.3 Equals Line 8 minus Line 174 Requires notification to the county clerk to abate an equal amount from taxes next extended. 5 Use of proceeds from the sale of school sites buildings, or other real estate is limited. See Sections 2-3.12 and 17-2.11 of the School Code.6 Equals Line 43 minus Line 60.7 Include revenue accounts 1110 through 1115, 1117, 1118 & 1120. Include taxes for bonds sold that are in addition to those identified separately.8 Educational Fund (10) - Computer Technology only.9 Corporate personal property replacement tax revenue must be first applied to the Municipal Retirement/Social Security Fund to replace tax revenue lost due to the

abolition of the corporate personal property tax (30 ILCS 115/12). This provision does not apply to taxes levied for Medicare-Only purposes.10 Include only tuition payments made to private facilities. See Function 4200 or 4400 for public facility disbursements/expenditures.11 Payment towards the retirement of lease/purchase agreements or bonded/other indebtedness (principal only) otherwise reported within the fund―e.g. alternate revenue

bonds( Describe & Itemize).

Page 34

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MCLEAN COUNTY UNIT SCHOOL DISTRICT NO. 5Normal, IllinoisSINGLE AUDITJune 30, 2010

TABLE OF CONTENTS

PAGEANNUAL FEDERAL FINANCIAL COMPLIANCE REPORT

(COVER SHEET) ..............................................................................................................35

A-133 SINGLE AUDIT INFORMATION CHECKLIST ..............................................................36

INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROLOVER FINANCIAL REPORTING AND ON COMPLIANCE ANDOTHER MATTERS BASED ON AN AUDIT OF BASIC FINANCIALSTATEMENTS PERFORMED IN ACCORDANCE WITHGOVERNMENT AUDITING STANDARDS .......................................................................37

INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE WITHREQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND INTERNAL CONTROLOVER COMPLIANCE AND SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS IN ACCORDANCE WITH OMB CIRCULAR A-133 ..........................39

RECONCILIATION OF FEDERAL REVENUES ......................................................................42

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS ..................................................43

NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS ...............................49

SCHEDULE OF FINDINGS AND QUESTIONED COSTS .......................................................50

SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS...........................................................61

CORRECTIVE ACTION PLAN................................................................................................62

Page 35

ANNUAL FEDERAL FINANCIAL COMPLIANCE REPORT (COVER SHEET)DISTRICT/JOINT AGREEMENT

DISTRICT/JOINT AGREEMENT NAME RCDT NUMBER CPA FIRM 9-DIGIT STATE REGISTRATION NUMBER

ADMINISTRATIVE AGENT IF JOINT AGREEMENT (as applicable) NAME AND ADDRESS OF AUDIT FIRM

ADDRESS OF AUDITED ENTITY (Street and/or P.O. Box, City, State, Zip Code)E-MAIL ADDRESSNAME OF AUDIT SUPERVISOR

Normal

CPA FIRM TELEPHONE NUMBER FAX NUMBER

THE FOLLOWING INFORMATION MUST BE INCLUDED IN THE A-133 SINGLE AUDIT REPORT:

X A copy of the CPA firm's most recent peer review report and acceptance letter has been submitted to ISBE (either with the audit or under separate cover).

X Financial Statements including footnotes § .310 (a)

X Schedule of Expenditures of Federal Awards including footnotes § .310 (b)

X Independent Auditor's Report § .505

X Independent Auditor's Report on Compliance and on Internal Control Over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards § .505

X Independent Auditor's Report on Compliance with Requirements Applicable to each Major Program and Internal Control over Compliance in Accordance with OMB Circular A-133 § .505

X Schedule of Findings and Questioned Costs § .505 (d)

X Summary Schedule of Prior Year Audit Findings § .315 (b)

X Corrective Action Plan § .315 (c)

THE FOLLOWING INFORMATION IS HIGHLY RECOMMENDED TO BE INCLUDED:

Copy of Federal Data Collection Form § .320 (b)

Year Ending June 30, 2010

McLean County Unit School District No. 517-064-0050-26 066-003320

Clifton Gunderson LLPDr. Gary Niehaus

1809 West Hovey

2511 Galen Drive

[email protected]

Hope Wheeler

217-351-7400 217-355-9549

61761-4339

Page 36

The following checklist is OPTIONAL; it is not a required form for completion of A-133 Single Audit information. The purpose of the checklist is to assist in determining if appropriate information has been correctly completed within the Annual Financial Report (AFR).This is not a complete listing of all A-133 requirements, but highlights some of the more common errors found during ISBE reviews.

GENERAL INFORMATION

1. Signed copies of audit opinion letters have been included with audit package submitted to ISBE.2. All opinion letters use the most current audit language as mandated in SAS 112 and other pronouncements.3. ALL Single Audit forms within the AFR Excel workbook have been completed, where appropriate.

- For those forms that are not applicable, "N/A" or similar language has been indicated.

4. ALL Federal revenues reported in FRIS Report 0053 (Summary of Payments) are accounted for in the Schedule of Expenditures of Federal Awards (SEFA).Programs funded through ARRA are identified separately in SEFA

5. Federal revenues reported on the AFR reconcile to Federal revenues reported on the SEFA.- Verify or reconcile on reconciliation worksheet.

6. The value of COMMODITIES has been included within the AFR on the INDIRECT COSTS page (IND COST INFO 30) on Line 12.It should not be included in the Statement of Revenues Received (REVENUES 9-14) within the AFR Accounts 4210 - 4299.Those accounts are specific cash programs, not non-cash assistance such as COMMODITIES.

7. Complete audit package (Data Collection Form, audit reports, etc.) has been submitted to the Federal Audit Clearinghouse inJeffersonville, Indiana.

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

8. Programs funded through ARRA (Federal Stimulus funds) are identified separately from "regular" Federal programs- Program name includes "ARRA - " prefix- Correct ARRA CFDA and ISBE program numbers are listed

9. All prior year's projects are included and reconciled to final FRIS report amounts.- Including revenue and expenditure/disbursement amounts.

10. All current year's projects are included and reconciled to most recent FRIS report filed.- Including revenue and expenditure/disbursement amounts.

11. Differences in reported spending amounts on the SEFA and the final FRIS reports should be detailed and/or documented in a finding, with discrepancies reported as Questioned Costs.

12. Child Nutrition Programs (CNP) are included on the SEFA: Project year runs from October 1 to September 30, so projects will cross fiscal year; This means that audited year revenues will include funds from both the prior year and current year projects.

13. Each CNP project should be reported on separate line (one line per project year per program).14. Total CNP Revenue amounts are consistent with grant amounts awarded by ISBE for each program by project year.15. Total CNP Expenditure amounts are consistent with grant amounts awarded by ISBE for each program by project year.16. Exceptions should result in a finding with Questioned Costs.17. The total value of COMMODITIES has been reported on the SEFA (CFDA 10.550).

- The value is determined from the following, with each item on a separate line: * Non-Cash Commodities: Monthly Commodities Bulletin for April (From the Illinois Commodities System accessed through ISBE web site) Total commodities = A PAL Allocated + B PAL Allocated + Processing Deductions + Total Bonus Allocated * Non-Cash Commodities: Commodities information for non-cash items received through Preferred Meal Systems Districts should track separately through year; no specific report available from ISBE * Department of Defense Fresh Fruits and Vegetables (District should track through year) - The two commodity programs should be reported on separate lines on the SEFA. * Amounts verified for Fresh Fruits and Vegetables cash grant program (ISBE code 4240) CFDA number: 10.582

18. TOTALS have been calculated for Federal revenue and expenditure amounts.19. Obligations and Encumbrances are included where appropriate.20. FINAL STATUS amounts are calculated, where appropriate.21. Medicaid Fee-for-Service funds and E-Rate reimbursements have not been included on the SEFA.22. All programs tested (not just Type A programs) are indicated by either an * or (M) on the SEFA.23. NOTES TO THE SEFA within the AFR Excel workbook (SEFA-2) have been completed.

Including, but not limited to:24. Basis of Accounting25. Name of Entity26. Type of Financial Statements27. Subrecipient information (Mark "N/A" if not applicable)

* ARRA funds are listed separately from "regular" Federal awards

SUMMARY OF AUDITOR RESULTS/FINDINGS/CORRECTIVE ACTION PLAN

28. Audit opinions expressed in opinion letters match opinions reported in Summary.29. All Summary of Auditor Results questions have been answered.30. All tested programs are listed.31. Correct testing threshold has been entered. (OMB A-133, §_.520)

Findings have been filled out completely and correctly (if none, mark "N/A").

32. Financial Statement and/or Federal Awards Findings information has been completely filled out for each finding.32. Finding completed for each Significant Deficiency and for each Material Weakness noted in opinion letters.33. Separate finding for each Federal program (i.e., don't report same finding for multiple programs on one sheet).34. Separate finding sheet for each finding on programs (e.g., excess interest earned and unallowable expenditures are two findings

and should be reported separately, even if both are on same program).35. Questioned Costs have been calculated where there are questioned costs.36. Questioned Costs are separated by fiscal year and by project.37. Questioned Costs have been calculated for Interest Earned on Excess Cash on Hand.

- Should be based on actual amount of interest earned38. A CORRECTIVE ACTION PLAN has been completed for each finding.

- Including Finding number, action plan details, projected date of completion, name and title of contact person

A-133 SINGLE AUDIT INFORMATION CHECKLIST


37

Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit

of Basic Financial Statements Performed in Accordance With Government Auditing Standards

Board of Education McLean County Unit School District No. 5 Normal, Illinois We have audited the basic financial statements of McLean County Unit School District No. 5 (District) as of and for the year ended June 30, 2010, and have issued our report thereon dated November 1, 2010. The District’s policy is to prepare its financial statements on the cash basis, which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America. 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. Internal Control Over Financial Reporting In planning and performing our audit, we considered the District’s internal control over financial reporting as a basis for designing our audit procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the District’s internal control over financial reporting. Our consideration of the internal control over financial reporting was for the limited purpose described in preceding paragraph and was not designed to identify all deficiencies in the internal control over financial reporting that might be significant deficiencies or material weaknesses and therefore, there can be no assurance that all deficiencies, significant deficiencies, or material weaknesses have been identified. However, as described in the accompanying schedule of findings and questioned costs, we identified certain deficiencies in internal control over financial reporting that we consider to be material weaknesses and another deficiency that we consider to be a significant deficiency. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. We consider the deficiencies described in the accompanying schedule of findings and questioned costs as items 2010-01, 2010-02 and 2010-03 to be material weaknesses.

38

A significant deficiency is a deficiency or combination of deficiencies in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We consider the deficiency described in the accompanying schedule of findings and questioned costs as item 2010-04 to be a significant deficiency.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the District’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

We noted certain matters that we reported to management of the District in a separate letter dated November 1, 2010.

The District’s responses to the findings identified in our audit is described in the accompanying schedule of findings and questioned costs. We did not audit the District’s responses and, accordingly, we express no opinion on them.

This report is intended solely for the information and use of the Board of Education, management, the Illinois State Board of Education, federal awarding agencies, and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.


39

Independent Auditor’s Report on Compliance With Requirementsthat Could have a Direct and Material Effect on Each Major Program

and on Internal Control Over Compliance and Schedule of Expenditures of Federal Awards in Accordance With OMB Circular A-133


Compliance

We have audited the compliance of McLean County Unit School District No. 5 (District) with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that could have a direct and material effect oneach of its major federal programs for the year ended June 30, 2010. The District’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs is the responsibility of the District’s management. Our responsibility is to express an opinion on the District’s compliance based on our audit.

We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the District’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on the District’s compliance with those requirements.

As described in item 2010-05 in the accompanying schedule of findings and questioned costs, the District did not comply with the requirements regarding reporting that are applicable to its ARRA - General State Aid - Education SFSF (CFDA No. 84.394 and 84.397) and Title II -Teacher Quality (CFDA No. 84.367) programs. Compliance with such requirements is necessary, in our opinion, for the District to comply with the requirements applicable to theseprograms.

In our opinion, except for the noncompliance described in the preceding paragraph, McLean County Unit School District No. 5 complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2010. The results of our auditing procedures disclosed additional instances of noncompliance with those requirements, which are required to be reported in accordance with OMB Circular A-133 and which are described in the accompanying schedule of findings and questioned costs as items 2010-05, 2010-06, and 2010-07.

40

Internal Control Over Compliance

The management of McLean County Unit School District No. 5 is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal programs. In planning and performing our audit, we considered McLean County Unit School District No. 5’s internal control over compliance with the requirements that could have a direct and material effect on a major federal program to determine the auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the District’s internal control over compliance.

Our consideration of the internal control over financial reporting was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control over compliance that might be significant deficiencies or material weaknesses and therefore, there can be no assurance that all deficiencies, significant deficiencies, or material weaknesses have been identified. However, as discussed below, we identified certain deficiencies in internal control over compliance that we consider to be material weaknesses and other deficiencies that we consider to be significant deficiencies.

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. We consider the deficiencies in internal control over compliance described in the accompanying schedule of findings and questioned costs as items 2010-01, 2010-02, 2010-03, 2010-05, and 2010-06 to be material weaknesses.

A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. We consider the deficiency in internal control over compliance described in the accompanying schedule of findings and questioned costs as item 2010-07 to be a significant deficiency.

McLean County Unit School District No. 5’s responses to the findings identified in our audit aredescribed in the accompanying schedule of findings and questioned costs. We did not audit the District’s response and, accordingly, we express no opinion on the responses.

41

Schedule of Expenditures of Federal Awards

We have audited the financial statements of McLean County Unit School District No. 5 as of and for the year ended June 30, 2010, and have issued our report thereon dated November 1, 2010. The District’s policy is to prepare its financial statements on the cash basis, which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America. The accompanying Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by OMB Circular A-133 and is 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.

This report is intended solely for the information and use of the Board of Education, management, the Illinois State Board of Education, federal awarding agencies, and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.


Page 42

RECONCILIATION OF FEDERAL REVENUES

Annual Financial Report to Schedule of Expenditures of Federal Awards

TOTAL FEDERAL REVENUE IN AFR

Account Summary 7-8, Line 7 Account 4000 7,268,410$ Flow-through Federal Revenues Revenues 9-14, Line 112 Account 2200 - Value of Commodities Indirect Cost Info 30, Line 11 247,763

Less: Medicaid Fee-for-Service Revenues 9-14, Line 268 Account 4992 -

AFR TOTAL FEDERAL REVENUES: 7,516,173$

ADJUSTMENTS TO AFR FEDERAL REVENUE AMOUNTS:

Reason for Adjustment:

ADJUSTED AFR FEDERAL REVENUES 7,516,173$

Total Current Year Federal Revenues Reported on SEFA: Federal Revenues Column D 7,516,173$

Adjustments to SEFA Federal Revenues:

Reason for Adjustment:

ADJUSTED SEFA FEDERAL REVENUE: 7,516,173$

DIFFERENCE: -$


Page 43

ISBE Project # Receipts/Revenues Expenditure/Disbursements4

Federal Grantor/Pass-Through Grantor/ CFDA (1st 8 digits) Year Year Year Year Obligations/ Final BudgetProgram or Cluster Title and Number2 or Contract #3 7/1/08-6/30/09 7/1/09-6/30/10 7/1/08-6/30/09 7/1/09-6/30/10 Encumb. StatusMajor Program Designation (A) (B) (C) (D) (E) (F) (G) (H) (I)

U.S. Department of Agriculture

Passed through the Illinois State Board of Education (ISBE)

National School Lunch Program 10.555 09-4210-00 720,936 304,521 832,926 192,531 0 1,025,457 N/A

10-4210-00 0 917,017 0 917,017 0 917,017 N/A

1,221,538 1,109,548

School Breakfast Program 10.553 09-4220-00 139,890 56,019 160,376 35,533 0 195,909 N/A

10-4220-00 0 176,096 0 176,096 0 176,096 N/A

232,115 211,629

Child & Adult Care Food Program 10.558 09-4226-00 19,414 3,537 19,414 3,537 0 22,951 N/A

10-4226-00 0 24,900 0 24,900 0 24,900 N/A

28,437 28,437

• (M) Program was audited as a major program as defined by OMB Circular A-133.

The accompanying notes are an integral part of this schedule.1 To meet state or other requirements, auditees may decide to include certain nonfederal awards (for example, state awards) in this schedule. If such nonfederal data are presented, they should be segregated and clearly designated as nonfederal. The title of the schedule should also be modified to indicate that nonfederal awards are included.2 When the CFDA number is not available, the auditee should indicate that the CFDA number is not available and include in the schedule the program's name and, if applicable, other identifying number.3 When awards are received as a subrecipient, the identifying number assigned by the pass-through entity should be included in the schedule.4 Circular A-133 requires that the value of federal awards expended in the form of non-cash assistance, the amount of insurance in effect during the year, and loans or loan guarantees outstanding at year end be included in either the schedule or a note to the schedule. Although it is not required, Circular A-133 states that it is preferable to present this information in the schedule (versus the notes to the schedule). If the auditee presents non-cash assistance in the notes to the schedule, the auditor should be aware that such amounts must still be included in part III of the data collection form.

McLean County Unit School District No. 5


17-064-0050-26

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

Page 44



Food Commodities 10.555 N/A 203,709 203,709 0 203,709 N/A

Dept of Defense Fresh Fruits and Vegetables 10.555 N/A 44,054 44,054 0 44,054 N/A

Total U. S Department of Agriculture, passed through ISBE 1,729,853 1,597,377

US Department of Education, Passed through ISBE

Title I - Low Income (M) 84.010 09-4300-00 1,207,242 8,580 1,017,823 197,999 0 1,215,822 1,230,031

10-4300-00 0 1,151,910 0 1,074,261 138,434 1,212,695 1,225,768

1,160,490 1,272,260

Title I - Low Income - Delinquent Private (M) 84.010 09-4306-00 25,956 0 25,956 0 0 25,956 44,200

10-4306-00 18,244 44,955 0 55,445 2,500 57,945 81,674

44,955 55,445



17-064-0050-26McLean County Unit School District No. 5

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDSYear Ending June 30, 2010

Page 45



Title IV - Safe & Drug Free Schools - Formula 84.186 09-4400-00 31,759 0 31,759 0 0 31,759 32,445

10-4400-00 686 33,789 0 33,059 0 33,059 34,475

33,789 33,059

Federal Special Educ.-IDEA-Room and Board 84.027 09-4625-00 214,008 220,891 342,291 92,608 0 434,899 N/A

10-4625-00 0 241,958 0 241,957 0 241,957 N/A

462,849 334,565

ARRA - General State Aid - Education SFSF (M) 84.394 09-4850-00 3,895,199 0 3,895,199 0 0 3,895,199 N/A

10-4850-00 0 2,318,428 0 2,318,428 0 2,318,428 N/A

2,318,428 2,318,428

ARRA - Title I - Low Income (M) 84.389 10-4851-00 0 374,381 0 333,322 82,132 415,454 443,492





Page 46



ARRA - Title I - Low Income - Delinquent Private (M) 84.389 10-4853-00 0 26,900 0 8,498 2,000 10,498 24,500

ARRA - General State Aid - Government SFSF (M) 84.397 10-4870-00 0 771,099 0 771,099 0 771,099 N/A

Title III - Immigrant Education Program (IEP) 84.365 09-4905-00 29,052 1,085 30,137 0 0 30,137 N/A

Title III - Lang Inst Prog-Limited Eng LIPLEP 84.365 09-4909-00 36,192 0 36,192 0 0 36,192 36,192

10-4909-00 0 11,100 0 0 0 0 37,600

11,100 0

Title II - Teacher Quality (M) 84.367 09-4932-00 217,043 33,689 250,732 0 0 250,732 332,987

10-4932-00 0 418,686 0 407,820 0 407,820 473,829

452,375 407,820





Page 47



Technology - Enhancing Education - Formula 84.318 09-4971-00 11,127 0 9,179 1,931 0 11,110 11,127

10-4971-00 0 8,205 0 3,312 0 3,312 10,317

8,205 5,243

Total US Department of Education, passed through ISBE 5,665,656 5,539,739

Passed through McLean Dewitt Education for Employment

Partnerships for College and Career Success 84.243 09-4770-00 9,800 0 9,800 0 0 9,800 9,800

10-4770-00 0 10,400 0 10,400 0 10,400 10,400

10,400 10,400

Passed through the Illinois Department of Human Services

Secondary Transition Experience Program 84.126 40CL001581 0 42,457 0 42,457 0 42,457 N/A





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U.S. Department of Human Services

Passed through the Illinois Department of Healthcare and Family Services

Medicaid Administrative Outreach 93.778 2009 106,118 0 106,118 0 0 106,118 N/A

2010 0 67,807 0 67,807 0 67,807 N/A

67,807 67,807

Total Expenditure of Federal Awards 7,516,173 7,257,780





Page 49

Note 1: Basis of Presentation5

Note 2: Subrecipients6

Federal Amount Provided toProgram Title/Subrecipient Name CFDA Number Subrecipients

None

5

6


NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (SEFA)Year Ending June 30, 2010

General--The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of McLean County Unit School District No. 5 (District). Federal financial assistance passed through other government agencies is included on this schedule

Of the federal expenditures presented in the schedule, the District provided federal awards to subrecipients as follows:

Basis of accounting--The accompanying Schedule of expenditures of Federal Awards is presented using the cash basis of accounting, which is described in Note 1 to the District's financial statements.

Relationship to Financial Statements--Federal financial assistance revenues received and expenditures disbursed are reflected in the District's financial statements as Receipts from Federal Sources and as instruction and support services disbursements, respectively.

Relationship to Program Financial Reports--Amounts reported in the accompanying schedule agree with the amounts reported in the Program Financial Reports for programs which have filed final reports as of June 30, 2010 with the granting agencies.

Other Noncash Assistance for insurance, loans, and loan guarantees--The District did not receive any federal awards in the form of noncash assistance for insurance in effect during the year, loans, or loan guarantees.

Circular A-133 requires the schedule of expenditures of federal awards to include, to the extent practical, an identification of the total amount provided to subrecipients, from each federal program. Although this example includes the required subrecipie

This note is included to meet the Circular A-133 requirement that the schedule include notes that describe the significant accounting policies used in preparing the schedule.

Page 50

FINANCIAL STATEMENTSType of auditor's report issued:

(Unqualified, Qualified, Adverse, Disclaimer)

INTERNAL CONTROL OVER FINANCIAL REPORTING:• Material weakness(es) identified? X YES NO

• Significant Deficiency(s) identified that are not considered to X YES None Reported be material weakness(es)

• Noncompliance material to financial statements noted? YES X NO

FEDERAL AWARDSINTERNAL CONTROL OVER MAJOR PROGRAMS:• Material weakness(es) identified? X YES NO

• Significant Deficiency(s) identified that are not considered to X YES None Reported be material weakness(es)

Type of auditor's report issued on compliance for major programs:(Unqualified, Qualified, Adverse, Disclaimer7)

Any audit findings disclosed that are required to be reported in accordance with Circular A-133, § .510(a)? X YES NO

IDENTIFICATION OF MAJOR PROGRAMS:8

CFDA NUMBER(S)9 NAME OF FEDERAL PROGRAM or CLUSTER10

84.010

ARRA - 84.389

84.010

ARRA - 84.389

84.367 Title II - Teacher Quality

ARRA - 84.394 ARRA - General State Aid - Education SFSF

ARRA - 84.397

Dollar threshold used to distinguish between Type A and Type B programs:

Auditee qualified as low-risk auditee? YES X NO

7 If the audit report for one or more major programs is other than unqualified, indicate the type of report issued for each program. Example: "Unqualified for all major programs except for [name of program], which was qualified and [name of program], which was a disclaimer." 8 Major programs should generally be reported in the same order as they appear on the SEFA. 9 When the CFDA number is not available, include other identifying number, if applicable.10 The name of the federal program or cluster should be the same as that listed in the SEFA. For clusters, auditors are only required to list the name of the cluster.

Title I Cluster - ARRA - Title I - Low Income

Title I Cluster - Title I - Low Income Delinquent Private

Title I Cluster - ARRA - Title I - Low Income Delinquent Private

$300,000.00


SCHEDULE OF FINDINGS AND QUESTIONED COSTSYear Ending June 30, 2010

SECTION I - SUMMARY OF AUDITOR'S RESULTS

ARRA - General State Aid - Education SFSF

Unqualified - Cash Basis

Qualified

Title I Cluster -Title I - Low Income

Page 51

1. FINDING NUMBER:11 2010-01 2. THIS FINDING IS: X New Repeat from Prior Year?Year originally reported?

3. Criteria or specific requirement

4. Condition

5. Context12

6. Effect

7. Cause

8. Recommendation


SECTION II - FINANCIAL STATEMENT FINDINGS


SCHEDULE OF FINDINGS AND QUESTIONED COSTS

Strong accounting policies include proper segregation of duties and review processes in order to ensure that error and omissions can be prevented, or detected and corrected in a timely manner.

During our review of internal controls over the cash disbursements process, we noted that the bookkeeper has access to the Business Manager's signature stamp in order to sign manual checks. Additionally checks printed using the software are signed electronically. There is no review of the check registers by the authorized check signers nor is the check sequence accounted for. Also, during the current fiscal year, there was no documentation of the review or approval of journal entries. Additionally, there is no review or approval of the District's large bank account or investment reconciliations. During the performance of our audit procedures related to investments, we noted the entry to record interest income received for June was posted in reverse, causing the investment balance to be misstated. This indicates that a proper segregation of duties over cash disbursements was not achieved, and a review of journal entries and reconciliations was not performed.

During our review of the cash disbursements process, we noted the bookkeeper had access to the Business Manager's signature stamp, and could create and sign a manual check without approval. During our review of controls over cash disbursements, we noted that checks are signed electronically and there is no review of the check register by authorized check signers. Additionally, while performing audit procedures over the District's internal controls for cash, investments, and journal entries, it was noted that the reconciliations for the large bank account and investment accounts did not take place and that there was no documentation of journal entry review. The investment account required an audit adjustment of $538,000.

A lack of proper segregation of duties could result in unauthorized payments being made, and not being detected in a timely manner. A lack of review processes can result in transactions not being properly recorded in the accounting records, and not being identified and corrected in a timely manner.

The bookkeeper was granted access to the Business Manager's signature stamp in order to write checks when necessary, if the Business Manager was not available. The software used for check writing signs the checks electronically as the checks are written. No controls were established to ensure the authorized check signers were reviewing and authorizing a listing of checks written. There was turnover in the Business Manager position during the year. An interim Business Manager was in place for most of the fiscal year. This position was filled with a permanent replacement at the end of the fiscal year.

We recommend the Business Manager maintain control over his signature stamp at all times, and that the District designate another authorized check signer who would be available to sign manual checks when the Business Manager is not available. This individual should be independent of the accounts payable function in order to achieve proper segregation of duties. We also recommend that authorized check signers review a listing of checks printed, and develop procedures to account for the sequence of check numbers. We also recommend that polices and procedures be implemented to ensure that all accounting transactions are reviewed by management to ensure all errors and omissions are identified and corrected in a timely manner.

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9. Management's response13

The finding is a result of direction provided by the previous chief financial officer and has since been corrected.

For ISBE ReviewDate: Resolution Criteria Code NumberInitials: Disposition of Questioned Costs Code Letter

The business manager now reviews and signs off on all journal entries, payroll reports, check runs, and special check runs. The signature stamp is in the business manager’s control at all times, and in cases of absence will be in the control of the most senior level Unit office administrator available.

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4. Condition

5. Context12




In accordance with Government Auditing Standards, District personnel are responsible for presenting reliable, useful, and timely information in order to provide accountability of government programs and their operations.

The main operating bank account did not reconcile to the general ledger at any point during the year, with an unlocated difference at year-end of $53,000. Capital lease payments of $566,000 were reclassified to the debt service fund. Capital leases in the amount of $401,000 were removed from long-term debt as these leases were not executed transactions. Capital outlay items were identified and reclassified from supplies accounts to capital outlay in the amount of $1,009,000. Capital assets required a beginning of year restatement in the amount of $1,233,139. Several reclassification entries were required in order to properly present all revenues in the financial statements, totaling $890,000. Interfund loans required audit adjustments of $567,000 to properly reflect loans outstanding. Inventory required an audit adjustment of $62,000.

During our audit we noted several issues related to the District's accounting system which indicated there was a need to refine policies and procedures in order to ensure that transactions were properly recorded to ensure the District's financial statements presented actual activities during the year. These issues included the following: (1) The budget was not prepared with a proper classification of expenditure accounts. Expenditures were not always budgeted in the proper account. During the year, the Finance Department performed an analysis of actual activities in order to determine the proper budgeted amounts for each expenditure account, and an amended budget was prepared. However, the budget was still not entirely reflective of actual planned activities. (2)The District relies on their external auditor to maintain fixed asset schedules, calculate depreciation expense, and prepare related financial statement disclosures. The District does not track and report disposals of fixed assets and does not periodically review fixed asset detailed records for omissions and items no longer owned. (3)The reconciled balance of the District's operating bank account did not agree with the general ledger control account throughout the year. The difference did not remain constant each month throughout the year, and the source of the difference has not been identified. (4) The District did not maintain a summary of and supporting documentation for all long-term debt. District personnel does not believe that several capital lease obligations included in the June 30, 2009 financial statements were actual debt of the District. This indicates a lack of proper review of the financial statements for errors and omissions by District management in the prior year. (5) During our review of repairs and maintenance expenditures, we noted major capital expenditures were classified as purchased service items rather than as capital outlay. These expenditures were not properly reflected as capital assets of the District. We also noted that these expenditures were not properly classified in the prior year, resulting in the need for a restatement of the prior year net assets. (6)Account descriptions for general ledger acccounts do not accurately reflect ISBE's descriptions for these account numbers.This condition makes a review of the accounting records difficult as it is unclear what the intended purpose of each general ledger account is, and could result in account activity not being properly presented in the annual financial report and financial statements. (7) We noted during our testing that revenues were not properly classified at times. Revenues should be recorded in the general ledger based on the account number structure stipulated by ISBE. This will ensure that all revenues are properly presented in the annual financial report submitted to ISBE. (8) Payments on computer and copier leases were being recorded in and paid out of the Educational Fund. ISBE requires all long-term debt payments be paid out of the Debt Service Fund, other than vehicle leases, which are paid out of the Transportation Fund. (9) Interfund loans were not properly recorded in the general ledger at June 30, 2010. Interfund loans were repaid, but reported in the general ledger as still outstanding, as these repayments had not been properly recorded. (10) Inventory was not properly recorded in the general ledger during the fiscal year. There was a balance maintained in the general ledger for inventory. Inventory purchases should be expensed, as District accounting records are presented on the cash basis of accounting and should be recorded as expenditures when paid.

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6. Effect

7. Cause

8. Recommendation



These conditions could result in errors or omissions in the financial statements.

The District had turnover during the year in key positions in the accounting department. Additionally, there are not policies and procedures in place to ensure that transactions are properly reported in the general ledger, account reconciliations are performed, and there is a review of financial information by appropriate levels of management.

We recommend that the District follow the guidelines established by the ISBE in the Illinois Program Accounting Manual for Local Education Agencies. We also recommend that the District implement policies and procedures to ensure proper segregation of duties, proper classification of transactions, monthly reconciliation of accounts, and reviews of accounting transactions and financial information by appropriate levels of management.

The district is engaged in a systematic accounting practice and policy review, particularly in light of past business management direction. Procedures are being reviewed corporate-wide in addition to a comprehensive review of the applicability and standardization of existing Board policies regarding accounting practices.

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4. Condition

5. Context12

6. Effect

7. Cause

8. Recommendation






Appropriate segregation of duties can be accomplished by restricting access rights in accounting and other information software. In order for this segregation in the accounting function to be accomplished, management in the Finance Department need to be involved in assigning access to employees, and should review access rights on a periodic basis in order to ensure proper segregation is being maintained.

The business and Information Technology offices will review benchmark policies for system access and rights and formulate a procedure for Unit 5.

Management has established a process to grant access rights to newly hired employees. Human Resources completes a form requesting access rights for the new employee. IT configures the employee’s access rights based upon the job description and archives the form. Neither the employee’s manager nor the Finance Department is required to approve access rights to the Skyward system. Access rights to the Windows network are reviewed periodically to ensure that rights are appropriate and that separated employees do not retain access. A similar process does not occur to ensure that access rights to the Skyward system are appropriate.

In performing auditing procedures over internal controls for information technology, it was noted that management of the Finance Department was not adequately involved in assigning access rights to employees.

This condition could result in access rights not being appropriate for individual employees based on job responsibilities, and access not being terminated for separated employees.

The District has not established policies and procedures to ensure that there is review of access rights assigned by appropriate levels of management.

Management should ensure that access rights are reviewed and approved by the appropriate stakeholders prior to implementation. A formal process (documented and with input of key department heads) of reviewing user access to the Skyward system resources should be performed to keep the rights to applications and data in check. These procedures should be performed at least annually, with documentation available of the process.

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4. Condition

5. Context12

6. Effect

7. Cause

8. Recommendation






In accordance with Government Auditing Standards, District personnel are responsible for presenting reliable, useful, and timely information in order to provide accountability of government activities.

Effective immediately, a building administrator must sign off on a document created by building personnel and reviewed by the business office reflecting check stock activity for all building/activity funds, this includes athletic accounts.

At minimum, the ledger must include check number, payee, and amount. The collective of these ledgers should equal the sequential check numbers of your check stock. All check stock must be accounted for. In cases of voided checks, the process is the same. The ledgers should be kept and available at any time for review by the principal or a designee. The designee may not be the EOP who writes the checks.

Additionally, a monthly checklist will be followed in reconciling activity funds so the book balance matches bank balances.

Monthly and an annual checklist have been transmitted for immediate implementation. The monthly checklists must be signed by the administrative designee and principal and submitted to the business office no later than the 15th of the month.

Activity funds do not follow the same controls processes as other District accounts, including approval and reporting processes, which increases likelihood for error.

During our audit, we noted that the individual activity fund beginning of year account balances in the accounting records did not agree with the balances reported in June 30, 2009 financial statement for 6 out of 22 activity funds tested. We also noted one deposit ticket and one invoice could not be located for review, receipts and disbursements could not be reconciled with the monthly reconciliation for 3 out of 27 accounts tested, and individual deposits could not be traced into deposit slips for 3 out of 27 accounts tested.

These conditions could result in errors or omissions in the financial statements and accounting records of the actvitiy funds.

Policies and procedures have not been developed and communicated to employees responsible for maintaining the accounting records for actvity funds to ensure that complete and accurate transaction records are maintained for these accounts.

We recommend the District require standard accounting, approval and reporting processes for all of the activity funds, as well as requiring that all accounts be reconciled on a monthly basis. The District should develop policies and procedures related to activity funds to ensure that all activity is properly supported and presented in the accounting records.

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1. FINDING NUMBER:14 2. THIS FINDING IS: X New Repeat from Prior year?

Year originally reported?

3. Federal Program Name and Year:

4. Project No.: 5. CFDA No.:

6. Passed Through:7. Federal Agency:

8. Criteria or specific requirement (including statutory, regulatory, or other citation)

9. Condition15

10. Questioned Costs16

11. Context17

12. Effect

13. Cause

14. Recommendation



14 See footnote 11.15 Include facts that support the deficiency identified on the audit finding.16 Identify questioned costs as required by sections 510(a)(3) and 510 (a) (4) of Circular A-133.17 See footnote 12.18 To the extent practical, indicate when management does not agree with the finding, questioned cost, or both.



SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

All programs

2010-01, 2010-02, 2010-03

All All

AllAll

See 2010-01, 2010-02, and 2010-03 reported in the Financial Statement Findings, Section II

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1. FINDING NUMBER:14 2010-05 2. THIS FINDING IS: X New Repeat from Prior year?Year originally reported?





9. Condition15


11. Context17

12. Effect

13. Cause

14. Recommendation



We recommend the District establish policies and procedures to ensure that all required reporting is identified, completed, reviewed, and submitted within the time frame established by ISBE.

This finding was in part due to staff turnover. However, controls have been established that were heretofore not in place. The business office is now notified of any report submission to ISBE, as ISBE is the administrative designee for federal reporting. The business manager benchmarks reports submitted for approval against an inventory of reports that need be submitted. Those managers responsible for reports not reconciling to the inventory are contacted and prompted to submit their reports.

Program requirements as outlined in the OMB Circular A-133 Compliance Supplement stipulate that reports be filed by the required due dates. The Illinois State Board of Education requires that quarterly reports for programs be filed within 30 days after the end of the quarter being reported on.

Reports required to be filed with the ISBE for the ARRA - General State Aid - Education SFSF were not filed on a timely basis and were not yet filed at the start of our audit fieldwork. The ISBE had frozen the funding for this program due to the delinquency of the report. Another report required for the ARRA - General State Aid - Education SFSF was filed, however, the District did not maintain support for the expenditures reported. This information had to be created during the audit in order to substantiate the expenditures reported. In addition, the nonfinancial information, which includes jobs created and retained, was not reported to the ISBE as required. For the quarterly reports tested for Title II - Teacher Quality, we noted two reports were not filed within 30 days after the quarter ended.

None.

The District was not able to provide the auditor with expense reports to test for the General State Aid Education SFSF spent during the year. $2,318,428 was unreported at the time of fieldwork while $771,099 was reported but no records existed to substantiate expenditures report. Two of four quarterly reports tested for Title II was delinquent.

The District is not in compliance with the reporting requirements established by ISBE. In a few instances, we noted this resulted in the ISBE program funding being frozen, although in one case this had no impact as the funding was drawn in full.

In one case for the ARRA - General State Aid - Education SFSF, the reporting was not completed as the District had turnover in its accounting department and the report was not filed as an oversight. In the other instance for the ARRA - General State Aid - Education SFSF, the report was filed timely, but the support for the expenditures reported were not retained and available for review and support. For the Title II - Teacher Quality program, there were no expenditures for the program in the first quarter of the fiscal year and grant personnel did not understand that the quarterly report needed to be filed regardless. The report for the fourth quarter was filed one day late.

U.S. Department of Education




ARRA General State Aid Education SFSF; Title II

10-4850-00; 10-4932-00ARRA 84.394; ARRA 84.397;

84.367

Illinois State Board of Education

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9. Condition15


11. Context17

12. Effect

13. Cause

14. Recommendation






Title I Cluster; Title II

10-4300-00, 10-4306-00, 10-4851-00, 10-4853-00; 10-4932-00 84.010, ARRA 84.389; 84.367

Illinois State Board of EducationU.S. Department of Education

The cash management requirements outlined in the OMB Circular A-133 Compliance Supplement, indicate that there should be minimal time between the request for and receipt of federal funds and the use of these funds for program purposes.

During our review of internal controls over compliance with cash management requirements, we noted there did not appear to be adequate controls in order to comply with cash management requirements. The District outlines a monthly payment plan on the budget reports prepared for ISBE. However, the District does not monitor funds expended and make any necessary revisions based on current activities in order to ensure compliance with cash management requirements. We noted that excess cash was accumulated at certain points throughout the year. However, these funds were maintained in non-interest bearing accounts and no interest was earned on the excess cash.

None.

Our testing indicated the District had accumulated $137,000 in excess cash for the Title I program, and $11,000 for the Title II program.

The District is not in compliance with cash management requirements. Noncompliance with grant requirements can result in loss of funding.

There did not appear to be adequate controls in order to comply with cash management requirements. The District outlines a monthly payment plan on the budget reports prepared for ISBE. However the District does not monitor funds expended and make any necessary revisions based on current activities in order to ensure compliance with cash management requirements.

The District should establish policies and procedures to ensure that program personnel manage cash needs of the program based on expected expenditures. Requests for funding should be modified as cash needs change during the fiscal year.

Cash balance monitoring has been implemented by the business office and special education funds director.

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9. Condition15


11. Context17

12. Effect

13. Cause

14. Recommendation






Title II

10-4932-00 84.367

Illinois State Board of EducationU.S. Department of Education

As outlined in the OMB Circular A-133 Compliance Supplement, in order to be eligible to receive a subgrant of Title II, the District must conduct an assessment of local needs for professional development and hiring, as identified by the District and its staff. The needs assessment must be conducted with the involvement of teachers, including those that work in Title I, Part A and schoolwide programs.

Through inquiry of program personnel, we determined the District did not conduct a required needs assessment for the Title II grant.

None.

While testing the special tests compliance requirements of the OMB A-133 Circular, it was noted the District did not conduct a needs assessment, which is required on an annual basis.

The District did not comply. Noncompliance with grant requirements can result in the loss of funding.

District personnel did not appear to be aware of this requirement.

We recommend that the District conduct an assessment of local needs for professional development and hiring, as identified by the District and its staff. The needs assessment should be conducted with the involvement of teachers, including those that work in Title I, Part A and schoolwide programs.

Unit 5 personnel have been advised of necessary changes to comply with grant requirements and implementing the necessary needs assessments.

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Finding Number Condition Current Status20

09-01 The District has not maintained Repeated within finding 2010-02.accounting records in accordancewith the Illinois Program Acctg. Manual.

09-02 The District prepares interim financial Corrected in the current year.reports using software specifically designed for school district financial reporting. These interim reports are reviewed and approved by the District's Board of Education. For year end reporting purposes, the District relies on the auditor to prepare drafts of full disclosure financial statements (including footnotes) in a format acceptable by ISBE.

09-03 Unauthorized interfund loans. Corrected in the current year.

When possible, all prior findings should be on the same page19 See the instructions in the Guide to Auditing and Reporting for Illinois Public Local Education Agencies for an explanation of this schedule.20 Current Status should include one of the following:

• A statement that corrective action was taken• A description of any partial or planned corrective action• An explanation if the corrective action taken was significantly different from that previously reported or in the management decision received from the pass-through entity.


SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS19


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Corrective Action Plan

Finding No.: 2010-01

Condition:

Plan:

Anticipated Date of Completion: July 1, 2010

Name of Contact Person: Erik Bush, Chief Financial Officer

Management Response:

21 See the instructions in the Guide to Auditing and Reporting for Illinois Public Local Education Agencies for an explanation of this schedule.

The business manager now reviews and signs off on all journal entries, payroll reports, check runs, and special check runs. The signature stamp is in the business manager's control at all times, and in cases of absence will be in the control of the most senior Unit office administrator available.

The finding is a result of direction provided by the previous chief financial officer and has since been corrected.

Lack of segregation of duties and review processes.

See management response below.


CORRECTIVE ACTION PLAN FOR CURRENT YEAR AUDIT FINDINGS21


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Condition:

Plan:

Anticipated Date of Completion: July, 2010 through Fall, 2011




The District is engaged in a systematic accounting practice and policy review, particularly in light of past business management direction. Procedures are being reviewed corporate-wide in addition to a comprehensive review of the applicability and standardization of existing Board policies regarding accounting practices.




Various errors in accounting information.


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Condition:

Plan:

Anticipated Date of Completion: Spring, 2011




The business and Information Technology offices will review benchmark policies for system access and rights and formulate a procedure for Unit 5.




Inadequate involvement of management in assigning system access rights to employees.


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Condition:

Plan:

Anticipated Date of Completion: December, 2010







Lack of review process over activity funds.


Effective immediately, a building administrator must sign off on a document created by building personnel and reviewed by the business office reflecting check stock activity for all building/activity funds, this includes athletic accounts.

At minimum, the ledger must include check number, payee, and amount. The collective of these ledgers should equal the sequential check numbers of your check stock. All check stock must be accounted for. In cases of voided checks, the process is the same. The ledgers should be kept and available at any time for review by the principal or a designee. The designee may not be the EOP who writes the checks.

Monthly and an annual checklist have been transmitted for immediate implementation. The monthly checklists must be signed by the administrative designee and principal and submitted to the business office no later than the 15th of the month.

Additionally, a monthly checklist will be followed in reconciling activity funds so the book balance matches bank balances.

Page 66



Condition:

Plan:

Anticipated Date of Completion: July, 2010




This finding was in part due to staff turnover. However, controls have been established that were heretofore not in place. The business office is now notified of any report submission to ISBE, as ISBE is the administrative designee for federal reporting. The business manager benchmarks reports submitted for approval against an inventory of reports that need be submitted. Those managers responsible for reports not reconciling to the inventory are contacted and prompted to submit their reports.




Quarterly reports not adequately supported or filed on a timely basis.


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Condition:

Plan:

Anticipated Date of Completion: July, 2010


Management Response:Cash balance monitoring has been implemented by the business office and special education funds director.





Inadequate controls over cash management for Title I and Title II grant programs.


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Condition:

Plan:

Anticipated Date of Completion: August, 2010




Unit 5 personnel have been advised of necessary changes to comply with grant requirements and implementing the necessary needs assessments.




No needs assessment was completed for Title II as required.


mclean county unit school district no. 5 normal, illinois

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