August 5, 2005
To the President and Board of Education
Greenview Community Unit School District No. 200
Greenview, Illinois
INDEPENDENT AUDITORS' REPORT
We have audited the financial statements of the Greenview Community Unit School District No. 200 as of June 30, 2005, as listed in the table of contents. These financial statements are the responsibility of the school district's management. Our responsibility is to express an opinion 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 opinion.
These financial statements are issued to comply with regulatory provisions prescribed by the Illinois State Board of Education, which is a comprehensive basis of accounting other than generally accepted accounting principles. They are intended to assure effective legislative and public oversight of school district financing and spending activities of accountable Illinois public school districts. Note #1 to these financial statements further describes their basis of presentation.
The District does not maintain a formal record system for the general fixed asset account group as shown on the statement of assets and liabilities arising from cash transactions. Capital assets of the District, as of July 1, 1966, were calculated by School District officials in accordance with guidelines promulgated by the Illinois State Board of Education. These valuations have been adjusted for transactions since July 1, 1966, and have been recorded in the fixed asset group of accounts. We did not attempt to establish these values.
A
In our opinion, except for the affects, if any, of the valuation of fixed assets as noted in the preceding paragraph, the financial statements referred to above present fairly, in all material respects, the assets and liabilities arising from cash transactions of the Greenview Community Unit School District No. 200 as of June 30, 2005, and its revenue received and expenditures disbursed during the fiscal year then ended, on the basis of accounting described in Note 1.
In accordance with Government Auditing Standards, we have also issued a report dated August 5, 2005 on our consideration of Greenview Community Unit School District No. 200's internal control over financial reporting and our tests of compliance with laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.
Our audit was made for the purpose of forming an opinion on the financial statements taken as a whole. The schedules listed in the table of contents as "Supplemental Information" are presented for the purposes of additional analysis and are not a required part of the financial statements of Greenview Community Unit School District No. 200. Such information, has been subjected to the 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.
This report is intended solely for the information and use of the Board of Education and management of Greenview Community Unit School District No. 200, and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,
PEHLMAN & DOLD, P.C.
CERTIFIED PUBLIC ACCOUNTANTS
B
August 5, 2005
To the President and Board of Education
Greenview Community Unit School District No. 200
Greenview, Illinois 62558
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL
REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
We have audited the financial statements of Greenview Community Unit School District No. 200 as of and for the year ended June 30, 2005, and have issued our report thereon dated August 5, 2005, which was qualified because the financial statements have been prepared on the regulatory (cash) basis of accounting and the District does not maintain a financial record system for the general fixed assets. 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.
As explained in Note 1 to the financial statements, the District's policy is to prepare the aforementioned financial statements on the basis of cash receipts and disbursements as prescribed in the Illinois Program Accounting Manual for Local Education Agencies reissued June 1996, which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America.
Compliance
As part of obtaining reasonable assurance about whether Greenview Community Unit School District No. 200's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, 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 that are required to be reported under Government Auditing Standards.
C
Internal Control Over Financial Reporting
In planning and performing our audit, we considered Greenview Community Unit School District No. 200's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses.
This report is intended for the information and use of the audit committee, management, and 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.
Respectfully submitted,
PEHLMAN & DOLD, P.C.
CERTIFIED PUBLIC ACCOUNTANTS
D
GREENVIEW COMMUNITY UNIT SCHOOL DISTRICT NO. 200
Menard County, Illinois
NOTES TO FINANCIAL STATEMENTS
For the Year Ended June 30, 2005
Note 1. REPORTING ENTITY, DESCRIPTION OF FUNDS AND ACCOUNT
GROUPS, AND SIGNIFICANT ACCOUNTING POLICIES
The District's accounting policies conform to the cash basis of accounting as defined by the Illinois State Board of Education Audit Guide.
FINANCIAL REPORTING ENTITY
The District's reporting entity includes the District's governing board and all related organizations for which the District exercises oversight responsibility.
The District has developed criteria to determine whether outside agencies with activities which benefit the citizens of the District, including joint agreements which serve pupils from numerous districts, should be included within its financial reporting entity as compound units. The criteria include, but are not limited to, whether the District exercises oversight responsibility (which includes financial interdependency, selection of governing authority, designation of management, ability to significantly influence operations, and accountability for fiscal matters), scope of public service, and special financing relationships.
The joint agreements and other outside agencies with activities which benefit the citizens of the District have been determined not to be part of the reporting entity after applying the manifesting of oversight, scope of public service and special financing relationships criteria and are therefore excluded from the accompanying financial statements because the District does not control the assets, operations or management of the joint agreements. In addition, the District is not aware of any entity which would exercise such oversight as to result in the District being considered a component unit of the entity.
DESCRIPTIONS OF FUNDS AND ACCOUNT GROUPS
The accounts of the District are organized 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 and liabilities (arising from cash transactions), fund balance, revenue received and expenditures disbursed. The District maintains individual funds required by the State of Illinois.
District resources are allocated to 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 following fund types and account groups are used by the District:
E
GREENVIEW COMMUNITY UNIT SCHOOL DISTRICT NO. 200
Menard County, Illinois
NOTES TO FINANCIAL STATEMENTS
For the Year Ended June 30, 2005
Note 1. REPORTING ENTITY, DESCRIPTION OF FUNDS AND ACCOUNT
GROUPS, AND SIGNIFICANT ACCOUNTING POLICIES - continued
Governmental Fund Types:
Governmental Funds are those through which most governmental functions of the District are financed. The acquisition, use and balances of the District's expendable financial resources and the related liabilities (arising from cash transactions) are accounted for through governmental funds.
General Fund - The General Fund, which consists of the Educational Fund and the Operations, Building and Maintenance Fund, is the general operating fund of the District. It is used to account for all financial resources except those required to be accounted for in another fund. Tort Immunity, Special Education, and Fire Prevention and Safety, are included in these funds.
Special Revenue Funds - Special Revenue Funds, which include both the Transportation Fund and the Illinois Municipal Retirement Fund, are used to account for cash received from specific sources (other than those accounted for in the Debt Service Fund, Capital Project Funds or Fiduciary Funds) that are legally restricted to cash disbursements for specified purposes.
Debt Service Fund - The Debt Service Fund (Bond and Interest Fund) accounts for the accumulation of resources for, and the payment of general long-term debt principal, interest and related costs.
Capital Project Fund - The Capital Project Fund (Fire Prevention and Safety Fund) accounts for financial resources to be used for the acquisition or construction of major capital facilities.
Fiduciary Fund Types:
Fiduciary Funds - Fiduciary 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.
Expendable Trust Funds - The Expendable Trust Funds include the Working Cash Fund and the Speech Awards Fund. The Working Cash Fund accounts for financial resources held by the District to be used for temporary interfund loans to the General Fund and Transportation Fund. The Speech Awards Fund grants speech awards to qualifying students.
Agency Funds - The Agency Funds (Activity Funds) include both Student Activity Funds and Convenience Accounts. They account for assets held by the District as an agent for the students and teachers. These funds are custodial in nature and do not involve the measurement of the results of operations. The amounts due to the activity fund organizations are equal to the assets.
F
GREENVIEW COMMUNITY UNIT SCHOOL DISTRICT NO. 200
Menard County, Illinois
NOTES TO FINANCIAL STATEMENTS
For the Year Ended June 30, 2005
Note 1. REPORTING ENTITY, DESCRIPTION OF FUNDS AND ACCOUNT
GROUPS, AND SIGNIFICANT ACCOUNTING POLICIES - continued
Governmental and Expendable Trust Funds - Measurement Focus - The financial statements of all Governmental Funds and Expendable Trust Funds focus on the measurement of spending or "financial flow" and the determination of changes in financial position rather than upon net income determination. This means that only current assets and current liabilities are generally included on their balance sheets. Their reported fund balance (net current assets) is considered a measure of "available spendable resources." Governmental fund operating statements present increase (cash disbursements and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of "available spendable resources" during a period.
General Fixed Assets and General Long-Term Debt Account Group - The accounting and reporting treatment applied to the fixed assets and long-term liabilities associated with a fund are determined by its measurement focus. Fixed assets used in governmental fund type operations are accounted for in the General Fixed Assets Account Group, rather than in governmental funds. Long-term liabilities expected to be financed from governmental funds are accounted for in the General Long-Term Debt Account Group, not in the governmental funds.
The two account groups are not "funds." They are concerned only with the measurement of financial position. They are not involved with measurement of results of operations.
BASIS OF ACCOUNTING
Basis of accounting refers to when revenues received and expenditures disbursed are recognized in the accounts and how they are reported on the financial statements. The District maintains its accounting records for all funds and account groups on the cash basis of accounting under guidelines prescribed by the Illinois State Board of Education. Accordingly, revenues are recognized and recorded in the accounts which cash is received. In the same manner, expenditures are recognized and recorded upon the disbursement of cash. Assets of a fund are only recorded when a right to receive cash exists which arises from a previous cash transaction. Liabilities of a fund, similarly, result from previous cash transactions.
Cash basis financial statements omit recognition of receivables and payables and other accrued and deferred items that do not arise from previous cash transactions.
Proceeds from loans and the sales of bonds are included as other financing sources in the appropriate fund on the date received. Related loan and bond principal payable in the future is recorded at the same time in the General Long-Term Debt Account Group.
G
GREENVIEW COMMUNITY UNIT SCHOOL DISTRICT NO. 200
Menard County, Illinois
NOTES TO FINANCIAL STATEMENTS
For the Year Ended June 30, 2005
Note 1. REPORTING ENTITY, DESCRIPTION OF FUNDS AND ACCOUNT
GROUPS, AND SIGNIFICANT ACCOUNTING POLICIES - continued
BUDGET AND BUDGETARY ACCOUNTING
The budget for all Governmental Fund Types and for the Expendable Trust Fund Working Cash is prepared on the cash basis of accounting which is the same basis that is used in financial reporting. This allows for comparability between budget and actual amounts. This is an acceptable method in accordance with Chapter 122, Paragraph 17.1 of the Illinois Revised Statutes. The budget was passed on September 23, 2004 and amended on April 21, 2005.
For each fund, total fund expenditures disbursed may not legally exceed the budgeted amounts. The budget lapses at the end of each fiscal year.
The District follows these procedures in establishing the budgetary data reflected in the financial statements.
1. Prior to July 1, the Superintendent submits to the Board of Education a proposed operating budget for the fiscal year commencing on that date. The operating budget includes proposed expenditures disbursed and the means of financing them.
2. A public hearing is conducted to obtain taxpayer comments.
3. Prior to October 1, the budget is legally adopted through passage of a resolution.
4. Formal budgetary integration is employed as a management control device during the year.
5. The Board of Education may make transfers between the various items in any fund, not exceeding in the aggregate 10 percent of the total of such fund as set forth in the budget.
6. The Board of Education may amend the budget (in other ways) by the same procedures required of its original adoption.
GENERAL FIXED ASSETS
General fixed assets have been acquired for general governmental purposes. At the time of purchase, assets are recorded as expenditures disbursed in the Governmental or Activity Funds and capitalized at cost in the general fixed assets account group, except that land and buildings acquired prior to July 1, 1966, are stated at estimated original cost as determined by guidelines for evaluation on a cost basis promulgated by the Illinois State Board of Education for establishing values at that date. Donated general fixed assets are stated at estimated fair market value as of the date of acquisition. Depreciation accounting is not considered applicable (except to determine the per capita tuition charge).
H
GREENVIEW COMMUNITY UNIT SCHOOL DISTRICT NO. 200
Menard County, Illinois
NOTES TO FINANCIAL STATEMENTS
For the Year Ended June 30, 2005
Note 2. PROPERTY TAXES
The District's property tax is levied each year on all taxable real property located in the District on or before the last Tuesday in December. The 2004 levy was passed by the board on December 16, 2004. Property taxes attached as an enforceable lien on property as of January 1 and are payable in two installments on June 1 and September 1. The District receives significant distributions of tax receipts approximately one month after these due dates. Taxes recorded in these financial statements are from the 2003 and prior tax levies.
The following are the tax rate limits permitted by the School Code and by local referendum and the actual rates levied per $100.00 of assessed valuation:
Actual
Limit 2004 Levy 2003 Levy
Educational 3.0500 3.0500 3.0500
Tort Immunity As Needed 1.0387 .8157
Special Education .0400 .0400 .0400
Operations, Building and
Maintenance .7500 .7500 .7500
Transportation .2000 .2000 .2000
Municipal Retirement As Needed .1267 .2599
Working Cash .0500 .0500 .0500
Fire & Safety .0500 .0500 .0500
Social Security As Needed .1267 .2599
Lease .0500 .0500 .-----
5.4821 5.4755
Note 3. SPECIAL TAX LEVIES AND RESTRICTED EQUITY
(a) Tort Immunity:
Cash receipts and the related cash disbursements of this restricted tax levy are accounted for in the Education Fund, Operations, Building and Maintenance Fund, and Transportation Fund. The portion of this funds' equity which represents the excess of cumulative receipts over cumulative disbursements is restricted for future tort immunity disbursements in accordance with Chapter 745, paragraph 9-101 to 9-107 of the Illinois Revised Statutes. At June 30, 2005, there was no excess cumulative receipts over disbursements.
I
GREENVIEW COMMUNITY UNIT SCHOOL DISTRICT NO. 200
Menard County, Illinois
NOTES TO FINANCIAL STATEMENTS
For the Year Ended June 30, 2005
Note 3. SPECIAL TAX LEVIES AND RESTRICTED EQUITY - continued
(a) Tort Immunity: - continued
The restricted balance at June 30, 2005 was determined as follows:
Operations,
Building and
Education Maintenance Transportation
Fund Fund Fund
Restricted Balance
at July 1, 2004 $(120,801) $( 20,860) $( 3,017)
2003 tort levy 157,224 40,000 7,000
Expenditures:
Liability insurance,
workman's compensation
and unemployment ( 22,655) ( 8,552) ( 4,199)
Legal/audit ( 6,785)
Inspections/training ( 8,329) ( 292)
Risk management policy (153,254) ( 15,596) ( 8,037)
Restricted Balance at
June 30, 2005 $(146,271) $( 13,337) $( 8,545)
(b) Special Education:
Cash receipts and the related cash disbursements of this restricted tax levy are accounted for in the Education Fund. The portion of this fund's equity which represents the excess of cumulative receipts over cumulative disbursements is restricted for future special education disbursements in accordance with Section 17-2.2A of the School Code. There were no unexpended funds from this source in the Educational Fund at June 30, 2005.
Note 4. CASH AND INVESTMENTS
Statutes allows the District to invest in obligations of the U.S. Treasury or any U.S. Agency whose obligations are guaranteed by the full faith and credit of the United States of America as to principal and interest; interest bearing accounts of banks insured by the Bank Insurance Fund; commercial paper of U.S. Corporations with assets exceeding $500,000,000 provided the obligations are rated in the 3 highest classifications by at lease 2 rating services and mature no later than 180 days from purchase; money market mutual funds registered under the Investment Company Act of 1940; repurchase agreements, interest bearing accounts of savings and loan associations insured by the Savings Association Insurance Fund; dividend bearing accounts of Illinois or Federally chartered credit unions provided such accounts are insured; and the Public Treasurers Investment Pool.
J
GREENVIEW COMMUNITY UNIT SCHOOL DISTRICT NO. 200
Menard County, Illinois
NOTES TO FINANCIAL STATEMENTS
For the Year Ended June 30, 2005
Note 4. CASH AND INVESTMENTS - continued
All funds of the District must be deposited and invested according to these statues. Depository banks use the Dedicated Method of collateralization, placing approved pledged securities for safekeeping and trust with the District's agent bank in an amount sufficient to protect District funds. The pledge of approved securities is waived only to the extent of the depository bank's dollar amount of Federal Deposit Insurance Corporation (FDIC) Insurance. External investment pools use the Pooling Method of collateralization. Due to the nature of external investment pools, participants maintain separate investment accounts representing a proportionate share of the pool assets and its respective collateral. Collateral is maintained in the name of the investment pool.
The following is disclosed regarding coverage as of June 30, 2005.
a) The Total amount of FDIC coverage as of June 30, 2005 was $200,000.
b) Dedicated Method: The market value of securities pledged was $860,900.
c) Pooling Method: Deposits in external investment pools are fully collateralized.
(a) Deposits:
At June 30, 2005, the carrying amount of the District's deposits (cash and interest bearing demand accounts at financial institutions) was $818,861, and the bank balance was $835,435.
The cash deposits held at financial institutions can be categorized according to three levels of risk:
Category 1: Deposits which are insured or collateralized with securities held by the District or by its agent in the District's name.
Category 2: Deposits which are collateralized with securities held by the pledging financial institution's trust department or agent in the District's name.
Category 3: Deposits which are not collateralized or insured.
Based on these levels of risk, the District's cash deposits are classified as follows:
Carrying Amount Bank Balance
Category #1 $ 100,000 $ 100,000
Category #2 718,861 735,435
$ 818,861 $ 835,435
K
GREENVIEW COMMUNITY UNIT SCHOOL DISTRICT NO. 200
Menard County, Illinois
NOTES TO FINANCIAL STATEMENTS
For the Year Ended June 30, 2005
Note 4. CASH AND INVESTMENTS - continued
(b) Investments:
Statutes authorize the District to invest in, but not limited to, interest bearing time accounts at financial institutions and external investment pools. The carrying value of investments owned at year end was $269,962, which approximates fair market value.
Similar to cash deposits, investments held at a financial institution can be categorized according to three levels of risk.
Category 1: Investments that are insured, registered or held by the entity or by its agent in the District's name.
Category 2: Investments that are uninsured and unregistered held by the counterparty's trust department or agent in the District's name.
Category 3: Uninsured and unregistered investments held by the counterparty, its trust or its agent, but not in the District's name.
All the District's investments held at a financial institution can be categorized as Category 1:
Carrying Amount Market Value Rating
Petefish Skiles and Co.-
Time Deposit CD $200,000 $200,000 Unrated
Illinois School District's
Liquid Assets Fund 69,962 69,962 AAAm
$269,962 $269,962
Interest Rate Risk: The District has no formal policy on interest rate risk.
Credit Risk: The District has no formal policy on credit risk.
Concentration Risk: The Board places no limit on the amount that can be invested with any single issuer. More than 5 percent of the District's investments are in the Illinois School District Liquid Asset Fund and the Petefish Skiles and Co. Time Deposit. The Illinois School District Liquid Asset Fund represents 25.9 percent and the Petefish Skiles and Co. represents 74.1 percent of total District investments.
L
GREENVIEW COMMUNITY UNIT SCHOOL DISTRICT NO. 200
Menard County, Illinois
NOTES TO FINANCIAL STATEMENTS
For the Year Ended June 30, 2005
Note 5. CHANGES IN GENERAL FIXED ASSETS
Balance Balance
July 1, 2004 Additions Deletions June 30, 2005
Land $ 7,500 $ $ $ 7,500
Buildings and
improvements 1,889,184 29,240 1,918,424
Improvements
other than
buildings 4,283 4,283
Other equipment 253,978 8,066 42,073 219,971
Transportation
equipment 244,677 41,058 44,185 241,550
Food service
equipment 23,459 249 23,708
Total general
fixed assets $2,418,798 $ 82,896 $ 86,258 $2,415,436
Note 6. RETIREMENT FUND COMMITMENTS
(a) Teachers' Retirement System of the State of Illinois:
The School District participates in the Teachers' Retirement System of the State of Illinois (TRS). TRS is a cost sharing multiple-employer defined benefit 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 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, 2005 was 9 percent of creditable earnings. These contributions, which may be paid on behalf of employees by the employer, are submitted to TRS by the employer.
In addition, virtually all employers and members pay a contribution to the Teachers' Health Insurance Security (THIS) Fund, a separate fund in the State Treasury that is not a part of this retirement plan. The employer THIS Fund contribution was .5 percent during the year ended June 30, 2005, and the member THIS fund health insurance contribution was .75 percent.
M
GREENVIEW COMMUNITY UNIT SCHOOL DISTRICT NO. 200
Menard County, Illinois
NOTES TO FINANCIAL STATEMENTS
For the Year Ended June 30, 2005
Note 6. RETIREMENT FUND COMMITMENTS - continued
(a) Teachers' Retirement System of the State of Illinois: - continued
The State of Illinois makes contributions directly to TRS on behalf of the District's TRS-covered employees. For the year ended June 30, 2005, creditable earnings reported to TRS was $1,162,879.
· On-behalf contributions. The State of Illinois makes employer pension contributions on behalf of the District. For the year ended June 30, 2005, State of Illinois contributions were based on 11.76 percent of creditable earnings, and the District recognized revenue and expenditures of $136,755 in pension contributions that the State of Illinois paid directly to TRS. For the years ended June 30, 2004, and June 30, 2003, the State of Illinois contribution rates as percentages of creditable earnings were 13.98 percent $164,326 and 13.01 percent $144,982, respectively.
The District makes three other types of employer contributions directly to TRS.
· 2.2 formula contributions. For the years ended June 30, 2005, and June 30, 2004, employers contributed .58 percent of creditable earnings for the 2.2 formula change. Contributions for the years ending June 30, 2005, and June 30, 2004, were $6,715 and $6,818, respectively.
For the year ended June 30, 2003, part of the employer's 2.2 formula contribution (.58 percent of pay) was reduced as a result of a new employer THIS Fund contribution for retiree health insurance (.4 percent of pay). The remaining .18 percent was submitted to TRS. Contributions for the year ended June 30, 2003 were $2,006.
· Federal and trust fund contributions. When TRS members are paid from federal and trust funds administered by the District, there is a statutory requirement for the District to pay an additional contribution that is currently 10.5 percent of salaries paid from those funds. For the year ended June 30, 2005, salaries totaling $64,380 were paid from federal and trust funds that required employer contributions of $6,745. For the years ended June 30, 2004, and June 30, 2003, required District contributions were $7,451 and $6,086, respectively.
N
GREENVIEW COMMUNITY UNIT SCHOOL DISTRICT NO. 200
Menard County, Illinois
NOTES TO FINANCIAL STATEMENTS
For the Year Ended June 30, 2005
Note 6. RETIREMENT FUND COMMITMENTS - continued
(a) Teachers' Retirement System of the State of Illinois: - continued
· Early retirement options. 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. No member or employer contributions are required if the member has 34 years of service. The maximum employer payment of 100 percent of the member's highest salary used in the calculation of final average salary is required if the member is 55 years old. For the year ending June 30, 2005, the District paid $-0- for employer contributions under the early retirement option. The District's required contributions for the years ended June 30, 2004 and June 30, 2003 were $25,733 and $-0- respectively.
TRS financial information, an explanation of the System's benefits and descriptions of member, employer, and state funding requirements can be found in the TRS Comprehensive Annual Financial Report for the year ended June 30, 2004. The System's report for the year ended June 30, 2005, is expected to be available in late 2005. Either of these reports can be obtained by writing to the Teachers' Retirement System, P.O. Box 19253, 2815 West Washington Street, Springfield, IL 62794-9253. The most current report is also available on the TRS Website at www.trs.state.il.us.
(b) Employee Benefit Pension Plan:
The District's defined benefit pension plan, Illinois Municipal Retirement Fund ("IMRF"), provides retirement, disability, annual cost of living adjustments and death benefits to plan members and beneficiaries. IMRF acts as a common investment and administrative agent for local governments and school districts in Illinois. The Illinois Pension Code establishes the benefit provisions of the plan that can only be amended by the Illinois General Assembly. The Illinois Municipal Retirement Fund has been classified as an Agent-Multiple-Employer Public Employee Retirement System.
IMRF issues a financial report that includes financial statements and required supplementary information. The report may be obtained at www.imrf.org/pubs/pubs_homepage.htm or by writing to the Illinois Municipal Retirement Fund, 2211 York Road, Suite 500, Oak Brook, Illinois 60523.
O
GREENVIEW COMMUNITY UNIT SCHOOL DISTRICT NO. 200
Menard County, Illinois
NOTES TO FINANCIAL STATEMENTS
For the Year Ended June 30, 2005
Note 6. RETIREMENT FUND COMMITMENTS - continued
(b) Employee Benefit Pension Plan: - continued
Employees participating in IMRF are required to contribute 4.50 percent of their annual covered salary. The member rate is established by state statute. The District is required to contribute at an actuarially determined rate. The employer rate for calendar year 2004 was 6.93 percent of payroll. The employer contribution requirements are established and may be amended by the IMRF Board of Trustees. IMRF's unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll on a closed basis (overfunded liability amortized on open basis). The amortization period at December 31, 2004 was 28 years.
For December 31, 2004, the District's annual pension cost of $19,796 was equal to the District's required and actual contributions. The required contribution was determined as part of the December 31, 2002 actuarial valuation using the entry age actuarial cost method. The actuarial assumptions included (a) 7.50 percent investment rate of return (net of administrative expenses), (b) projected salary increases of 4.00 percent a year, attributable to inflation, (c) additional projected salary increases ranging from .4 to 11.6 percent per year depending on age and service, attributable to seniority/merit, and (d) post-retirement benefit increases of 3 percent annually. The actuarial value of IMRF assets was determined using techniques that smooth the effects of short-term volatility in the market value of investments over a five-year period with a 15 percent corridor. The assumptions used for the 2004 actuarial valuation were based on the 1999-2001 experience study.
TREND INFORMATION
Actuarial Annual Percentage
Valuation Pension of APC Net Pension
Date Cost (APC) Contributed Obligation
12/31/04 $ 19,796 100% $ --
12/31/03 23,257 100 --
12/31/02 24,155 100 --
12/31/01 22,047 100 --
12/31/00 22,636 100 --
12/31/99 20,838 100 --
12/31/98 21,259 100 --
12/31/97 22,293 100 --
12/31/96 20,164 100 --
12/31/95 21,939 100 --
P
GREENVIEW COMMUNITY UNIT SCHOOL DISTRICT NO. 200
Menard County, Illinois
NOTES TO FINANCIAL STATEMENTS
For the Year Ended June 30, 2005
Note 6. RETIREMENT FUND COMMITMENTS - continued
(b) Employee Benefit Pension Plan: - continued
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF FUNDING PROGRESS
Actuarial UAAL as a
Accrued Percentage
Actuarial Liability Unfunded of
Actuarial Value of (AAL) AAL Funded Covered Covered
Valuation Assets Entry Age (UAAL) Ratio Payroll Payroll
Date (a) (b) (b-a) (a/b) (c) (b-a)/c)
12/31/04 $515,839 $ 535,742 $ 19,903 96.28% $285,659 6.97%
12/31/03 473,888 455,207 ( 18,681) 104.10 265,189 .00
12/31/02 421,307 386,415 ( 34,892) 109.03 240,825 .00
12/31/01 300,421 311,909 11,488 96.32 203,012 5.66
12/31/00 206,336 261,994 55,658 78.76 176,702 31.50
12/31/99 135,390 219,174 83,784 61.77 160,175 52.31
12/31/98 50,218 181,217 130,999 27.71 149,395 87.69
12/31/97 94,671 249,077 154,406 38.01 159,030 97.09
12/31/96 80,495 246,831 166,336 32.61 159,402 104.35
12/31/95 96,615 275,655 179,040 35.05 167,668 106.78
On a market value basis, the actuarial value of assets as of December 31, 2004 is $517,522. On a market basis, the funded ratio would be 96.60 percent.
v Digest of Changes
2004 Assumptions
The actuarial assumptions used to determine the actuarial accrued liability for 2004 are based on the 1999-2001 Experience Study.
The principal changes were:
- Fewer members are expected to take refunds early in their career.
- For Regular members, fewer normal and early retirements are
expected to occur.
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GREENVIEW COMMUNITY UNIT SCHOOL DISTRICT NO. 200
Menard County, Illinois
NOTES TO FINANCIAL STATEMENTS
For the Year Ended June 30, 2005
Note 6. RETIREMENT FUND COMMITMENTS - continued
(c) Social Security:
Employees not qualifying for coverage under the Illinois Downstate Teachers' Retirement System or the Illinois Municipal Retirement Fund are considered "non-participating employees". These employees and those qualifying for coverage under the Illinois Municipal Retirement Fund are covered under Social Security.
Note 7. JOINT VENTURE
Greenview Community Unit School District No. 200 participates in a joint agreement with the Sangamon Area Special Education District, who provides special education services to various school districts. The District pays tuition annually to the Sangamon Area Special Education District for providing these services to the District's qualifying students. For the year ended June 30, 2005, the District paid $178,770 in special education tuition.
The District does not have an equity interest in this joint agreement. Sangamon Area Special Education District is separately audited and is not included in these financial statements. A copy of their audit report can be obtained by contacting Sangamon Area Special Education District, Springfield, Illinois.
Note 8. DISCLOSURE OF RISK
Significant losses are covered by commercial insurance for all major programs: property, liability, and workers' compensation. During the year ended June 30, 2005, there were no significant reductions in coverage. Also, there have been no settlement amounts which have exceeded insurance coverage in the past three years.
Note 9. LEGAL DEBT MARGIN
Assessed valuation (2004 tax levy year) $23,682,232
Debt limit - 13.8% of assessed value $ 3,268,162
Less: Long-term debt outstanding --
Legal debt margin $ 3,268,162
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GREENVIEW COMMUNITY UNIT SCHOOL DISTRICT NO. 200
Menard County, Illinois
NOTES TO FINANCIAL STATEMENTS
For the Year Ended June 30, 2005
Note 10. ESTIMATES
The preparation of financial statements in conformity with generally accepted accounting principles requires the District 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 and expenses during the reporting period. Actual results could differ from those estimates.
Note 11. CONTINGENCIES
The District has received funding from state and federal grants in the current and prior years which 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.
Note 12. INTERFUND RECEIVABLE AND PAYABLES
Balance
at
From To June 30, 2005
Working Cash Fund Operations, Building $100,000
and Maintenance Fund
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GREENVIEW COMMUNITY UNIT SCHOOL DISTRICT NO. 200
Menard County, Illinois
STUDENT ACTIVITY FUND
For the Year Ended June 30, 2005
Balance Balance
July 1, 2004 Receipts Disbursements June 30, 2005
2003 Seniors $ 745 $ $ $ 745
2004 Seniors 31 31
2005 Seniors 5,636 13,489 19,108 17
Juniors 1,935 3,826 3,789 1,972
Sophomores 673 2,524 476 2,721
Freshman 455 2,942 1,554 1,843
8th Grade 111 1,572 1,573 110
6th Grade 619 355 264
Yo-Yo 46 46
Post Prom 588 1,685 1,843 430
Vocal Music 25 25
FFA 1,785 4,108 4,161 1,732
Industrial Arts 248 123 153 218
Band Department 982 396 560 818
Coke Machine 29 2,546 1,616 959
Score Table 1,720 6,630 8,350
Scholastic Bowl 87 87
Agra Business 281 255 26
Spanish Club 589 495 798 286
Art Department 1,529 1,320 209
High School Cheerleading 80 1,947 1,810 217
Junior High Cheerleading 103 626 660 69
High School Athletics 32 22 10
Volleyball 2,106 6,656 4,878 3,884
Biddy Ball 560 175 385
Tournaments ( 277) 512 235
Interest 48 6,738 6,286 500
High School Basketball 361 5,471 4,157 1,675
Junior High Softball 24 434 84 374
Junior High Basketball 159 720 730 149
High School Baseball Camp 1,333 15 1,348
Baseball ( 97) 300 116 87
Golf 3,358 2,551 807
Junior High Tech Club 35 35
Gym Class 111 3,222 3,156 177
Cooking Class 112 102 10
Clothing Class 33 33
S.A.P. 254 254
Tech Club 102 102
Vending Machine 180 781 320 641
Student Council 274 490 726 38
Yearbook 2,273 9,268 10,275 1,266
Senior Webpage 131 212 168 175
Advance Placement 124 498 222 400
Drama Club 180 2,227 1,707 700
Estate Library 29,066 26,256 2,810
Norton Donation 1,980 ( 1,980)
$ 52,793 $ 86,439 $113,897 $ 25,335
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