We present to readers of the District's financial statements this narrative overview and analysis of the financial activities of the Valley View Public Schools Community Unit School District 365-U for the fiscal year ended June 30, 2015. The assets of the District are classified as current - and other assets and capital assets. These assets are available to provide resources for the short-term operations of the District.
These financial statements and discussions are designed to provide an overview of the District's finances for all interested parties. County equity in a joint venture is not reported in government funds. capital change for the year.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
In the government-wide Overview of the Net Position and the Overview of Activities, government activities are presented on an accrual basis. In the fund's financial statements, capital assets are recognized as capital expenditures upon acquisition. The long-term debts for government funds are not reported as liabilities in the fund's annual accounts.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d) l. Prepaid Items
Dedicated – the dedicated fund balance refers to amounts that can only be used for specific purposes in terms of restrictions imposed by formal action of the school board. Assigned – The assigned fund balance classification refers to amounts that are limited by the District's intent to be used for specific purposes, but are not restricted or committed. Unassigned – the unassigned fund balance classification is the remaining classification for amounts in the General Fund for amounts that are not restricted, committed, or assigned to specific purposes within the General Fund or other funds.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Concluded) o. Bond Premiums and Discounts
DEPOSITS AND INVESTMENTS
DEPOSITS AND INVESTMENTS (Cont’d)
CAPITAL ASSETS
RISK MANAGEMENT
LEASE OBLIGATIONS Operating Leases
LEASE OBLIGATIONS (Cont’d))
LONG-TERM DEBT
LONG-TERM DEBT (Cont’d)
The outstanding principal amount of the bonds increased by an aggregate amount through an increase in the original discounts as interest on the District's capital appreciation bond issues in the fiscal year ended June 30, 2015. In prior fiscal years, the District retired certain general obligation bonds by is the proceeds of the new bonds in irrevocable trust to secure all future debt repayment payments based on the old bonds. Accordingly, trust account funds and retired bond liabilities are not included in the district's financial statements.
LONG-TERM DEBT (Concluded)
POSTRETIREMENT BENEFITS
POSTRETIREMENT BENEFITS (Cont’d)
POSTRETIREMENT BENEFITS (Cont’d) Significant methods and assumptions were as follows
CONTINGENT LIABILITIES Litigation
FUND BALANCES
EMPLOYEE RETIREMENT SYSTEMS
Teachers’ Retirement System of the State of Illinois General Information about the Pension Plan
EMPLOYEE RETIREMENT SYSTEMS (Cont’d)
For the year ending June 30, 2015, the employer's pension contribution was 33.00 percent of wages paid from federal and special trust funds. For the year ended June 30, 2015, the employer paid $23,123 to TRS for employer contributions payable on wage increases in excess of 6 percent and $-0- for sick leave days in addition to the normal annual allotment. On 30 June 2015, the employer reported a liability for its proportionate share of the net pension liability (first amount shown below) which reflected a reduction for state pension support provided to the employer.
The employer's proportionate share of the net pension obligation The state's proportionate share of the associated net pension obligation. The net pension obligation was measured per 30 June 2014, and the total pension obligation used to calculate the net pension obligation is determined by an actuarial valuation per June 30, 2013 and rolled forward to June 30, 2014. The employer's share of the net pension liability was based on the employer's share of contributions to the TRS for the measurement year ending June 30, 2014, relative to the expected contributions of all participating TRS employers and the state During this period.
The net pension obligation at the beginning of this first measurement period under GASB Statement No. The employer's share of the net pension obligation per June 30, 2013 was based on the employer's share of contributions to TRS for the measurement year ending June 30, 2013, relative to the expected contributions of all participating TRS employers and the state during that period. 1,344,318 reported as deferred outflow of resources related to pensions arising from employer contributions after the measurement date will be recognized as a reduction of the net pension liability in the financial year ended 30 June 2016.
Sensitivity of the employer's proportional share of the net pension liability to changes in the discount rate.
EMPLOYEE RETIREMENT SYSTEMS (Cont’d) TRS Fiduciary Net Position
THIS Fund Contributions
Illinois Municipal Retirement Fund Pension Plan IMRF Plan Description
The final rate of earnings is the highest total earnings during any 48 consecutive months within the last 10 years of service, divided by 48. Under Tier 1, the pension increases by 3% of the initial amount on January 1 each year after retirement. Participating employees who retire at age 62 (with reduced benefits) or after age 67 (with full benefits) with ten years of service are entitled to an annual retirement benefit, payable monthly for life, in an amount equal to 1-2/3%. of the final rate of earnings for the first 15 years of service credit, plus 2% for each year of service credit after 15 years up to a maximum of 75% of their final rate of earnings.
The final salary is the highest total income for 96 consecutive months within the last ten years of service, divided by 96. The total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The IMRF specific rates were developed based on the RP-2014 Employee Mortality Table with adjustments to reflect current IMRF experience.
The long-term expected return on pension plan investments was determined using a building block approach where best-estimated ranges of expected future real returns (expected return net of pension investment costs and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected return by weighting the expected future real returns to the target asset allocation percentage and adding expected inflation. The long-term expected return on pension plan investments (during the period in which the net fiduciary position is expected to be sufficient to pay benefits), and.
For the most recent valuation, the expected return on plan investments is 7.50%, the interest rate on municipal bonds is 3.56% and the resulting discount rate is 7.48%.
Social Security
JOINT VENTURE
COMMITMENTS/REIMBURSEMENTS AND SUBSEQUENT EVENTS
Required supplementary information includes financial information and information required by the GASB but not considered part of the basic financial statements. Summary of Employer Contributions - Illinois Municipal Retirement Fund Summary of Employer's Proportionate Share of Net Pension Obligation - Teachers' Retirement System. Schedule of Employer Contributions – Teachers' Retirement System Schedules of Funding Progress – Other Post-Employment Benefits Schedules of Income, Expenditures and Changes in Fund Balance – Budget and Actual with Comparable Actual Amounts for:.
Explanations Actuarially determined contribution rates are calculated on 31 December each year, which is 12 months before the start of the financial year in which contributions are reported. Retirement age: table of rates based on experience specific to the type of eligibility condition; last updated for the 2011 valuation according to a study of experience from the period 2008 to 2010. Proportionate share of the employer in the net pension obligation Proportionate share of the state in the net pension obligation.
SCHEDULE OF INCOME, EXPENDITURES AND CHANGES IN THE BUDGET AND CURRENT FUNDS BALANCE FOR THE YEAR ENDED JUNE 30, 2015. The supervisor is authorized to transfer up to 10% of the total budget between departments; within any fund without a Board of Education, however, any revisions that change the total expenditures of any fund must be approved by the Board of Education after the public hearing process mandated by law. The District's General Fund consists of four accounts: The Education Account which records the direct costs of instruction and administration: The Operations and Maintenance Account which reports all costs of maintaining, improving or repairing school buildings and property; The Obligation Account which is used to account for the district's risk financing activities; and the Working Cash Account which holds financial resources held by the District to be used for temporary loans to the Education Account, the Operations and Maintenance Account and the Maintenance Account and Transportation Fund.
COMBINATION OF SCHEDULE OF INCOME, EXPENDITURE AND CHANGES IN BUDGETED AND ACTUAL FUND BALANCE FOR THE YEAR ENDED 30 JUNE 2015.
Continued)
WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED 30 JUNE 2014 BUDGET AND ACTUAL FOR THE YEAR ENDED 30 JUNE 2015.
Concluded)
Concluded)
Debt Service Fund - To account for periodic principal and interest payments for the issuance of general bonds and the lease of county capital. Municipal Retirement Fund - To account for the County's share of pension contributions to the Illinois Municipal Retirement Fund for classified employees and Social Security contributions for eligible certified and classified employees. Fire Prevention and Safety Fund - to account for financial resources that will be used to acquire, build or upgrade major capital facilities for the purpose of fire prevention and increased safety in the district.
SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2014. The agency funds consist of funds held by the District as trustee and are to be expended or invested in accordance with the capacity of its agencies. COMMUNITY UNIT SCHOOL DISTRICT NO. understand what the financial information in the financial statements, disclosures, and required additional information says about the overall financial health of the district. financial performance and well-being have changed over time.
These schedules contain information to help the reader evaluate the district's most important source of local revenue, property taxes. These schedules contain information to help the reader assess the affordability of the District's current levels of outstanding debt and the District's ability to incur additional debt in the future. These schedules provide demographic and economic indicators to help the reader understand the environment within which the County's financial activities take place.
These schedules contain service and infrastructure data to help the reader understand how the information in the county's financial report relates to the services the county provides and the activities it performs. Beginning in 2011, the District adopted the provisions of GASB Statement No. 54, which required reporting on the state of assets in new classifications. If the district were to raise local property taxes higher than the PTELL allows, it must obtain voter approval in a referendum.
