ISBE 2015-16 Annual Financial Report District/IL Mid-State Special... · morrisonville, illinois . annual financial report . as of and for the year ended june 30, 2016. mose, yockey,

MID-STATE SPECIAL EDUCATION

MORRISONVILLE, ILLINOIS

ANNUAL FINANCIAL REPORT

AS OF AND FOR THE YEAR ENDED JUNE 30, 2016

MOSE, YOCKEY, BROWN & KULL, LLC

CERTIFIED PUBLIC ACCOUNTANTS SHELBYVILLE, ILLINOIS

Printed: 10/24/201603011801060. afr-16-form

Due to ROE on Friday, October 14thDue to ISBE on Tuesday, November 15thSD/JA16

School DistrictX Joint Agreement

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

County Name: Name of Audit Manager:

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 License Number (9 digit): Expiration Date:

Zip Code: Email Address:

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

X Qualified Unqualified X YES NO Are Federal expenditures greater than $750,000?

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

Disclaimer X YES NO Were any financial statement or federal awards findings issued?

X 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). This form is based on 23 Illinois Administrative Code, Subtitle A, Chapter I, Subchapter C, Part 100. ISBE Form SD50-35/JA50-60 (05/16, Revised 7/1/2016) In some instances, use of open account codes (cells) may not be authorized by statute or administrative rule.

Each school district or joint agreement is responsible for obtaining the concurring legal opinion and/or other supporting authorization/documentation, as necessary, to use the applicable account code (cell).

62546-0046

Email Address:Email Address:

Single Audit Status:

[email protected]

217-526-8205217-526-8121

Brenda Patrick

ILLINOIS STATE BOARD OF EDUCATIONSchool Business Services Division

June 30, 2016

Accounting Basis:

Annual Financial Report *

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

Illinois School District/Joint Agreement

[email protected]

Click on the Link to Submit: Send ISBE a File

Filing Status:Mid-State Special Education

Certified Public Accountant InformationSchool District/Joint Agreement Information(See instructions on inside of this page.)

Morrisonville

202 Prairie, PO Box 46

10-011-8010-60

Christian

Shelbyville

Mose, Yockey, Brown & Kull, LLC

Robin R. Yockey

62565IL

230 N. Morgan, PO Box 317

066-003845

618-283-5013

217-774-9587

618-283-5011

Julie Wollerman

[email protected]

11/30/2018

217-774-9589

https://sec1.isbe.net/attachmgr/default.aspx


Printed: 10/24/201603011801060. afr-16-form

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) 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 Section Schedule of Capital Outlay and Depreciation……………………………………………………………………............................. Cap Outlay Deprec 27Estimated Operating Expenditures Per Pupil and Per Capita Tuition Charge Computation…………………………… PCTC-OEPP 28 - 29

Estimated Indirect Cost Rate for Federal Programs (Section I, Section II)………………………………………………......... ICR Computation 30Report on Shared Services or Outsourcing ………………………………………………......................................................... Shared Outsourced Serv. 31Administrative Cost Worksheet……………………………………………………………………….……………........................... AC 32Itemization Schedule…………………………………………………………………………………………………............................ ITEMIZATION 33Reference Page………………………………………………………………………………………………………............................. REF 34Notes, Opinion Letters, etc…… Opinion-Notes 35Deficit Reduction Calculation…… Deficit AFR Sum Calc 36Audit Checklist/Balancing Schedule………………………………………………………………………………........................... AUDITCHECK -Single Audit Section

Annual Federal Compliance Report………………………………………………………………………………….......................... Single Audit Cover - CAP 37 - 46

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 Auditing Standards" were utilized.Single Audit Act

Qualifications of Auditing Firm* School District/Joint Agreement entities must verify the qualifications of the auditing firm by requesting the most current peer review report and the corresponding acceptance letter from the approved peer review program, for the current peer review period.* A school district/joint agreement who engages with an auditing firm who is not licensed and qualified will be required to complete a new audit by a qualified auditing firm at the school district's/joint agreement's expense.

http://www.isbe.net/rules/archive/pdfs/100ARK.pdf


http://www.isbe.net/funding/html/a133.htm

INDEPENDENT AUDITOR’S REPORT

To the Executive Committee Mid-State Special Education Morrisonville, Illinois

Report on the Financial Statements

We have audited the accompanying financial statements of Mid-State Special Education, as of and for the fiscal year ended June 30, 2016, and the related notes to the financial statements, which collectively comprise the Joint Agreement’s basic financial statements as listed in the table of contents of the Annual Financial Report form.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with the modified cash basis of accounting described in Note 1; this includes determining that the modified cash basis of accounting is an acceptable basis for the preparation of the financial statements in the circumstances. Management is also responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles

As described in Note 1, the financial statements are prepared by Mid-State Special Education, on the basis of the financial reporting provisions of the Illinois State Board of Education, which is a basis of accounting other than accounting principles generally accepted in the United States of America, to comply with the requirements of the Illinois State Board of Education. They are intended to assure effective legislative and public oversight of school district financing and spending activities of accountable Illinois public school districts and joint agreements. The effects on the financial statements of the variances between the regulatory basis of accounting described in Note 1

and accounting principles generally accepted in the United States of America, although not reasonably determinable, are presumed to be material.

Adverse Opinion on U.S. Generally Accepted Accounting Principles

In our opinion, because of the significance of the matter discussed in the “Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles” paragraph, the financial statements referred to in the first paragraph do not present fairly, in accordance with accounting principles generally accepted in the United States of America, the financial position of Mid-State Special Education, as of June 30, 2016, or the changes in its financial position for the fiscal year then ended.

Basis for Qualified Opinion on Regulatory Basis of Accounting

Management has omitted disclosures required by Governmental Accounting Standards Board Statement 45 Accounting and Financial Reporting for Post-Employment Benefits Other Than Pensions. The amount by which this disclosure would affect the financial statements is not reasonably determinable.

Qualified Opinion on Regulatory Basis of Accounting

In our opinion, except for the effects of the matter described in the “Basis for Qualified Opinion on Regulatory Basis of Accounting” paragraph, the financial statements referred to in the first paragraph present fairly, in all material respects, the assets and liabilities arising from cash transactions of Mid-State Special Education as of June 30, 2016, and its revenues received and expenditures disbursed during the fiscal year then ended, on the basis of the financial reporting provisions of the Illinois State Board of Education.

Basis of Accounting

We draw attention to Note 1 of the financial statements, which describes the basis of accounting. The financial statements are prepared on the modified cash basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to that matter.

Other Matters

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise Mid-State Special Education’s basic financial statements. The supplementary schedules on page 23, the statistical section on page 27, the estimated indirect cost rate on page 30, the report on shared services or outsourcing on page 31, the itemization schedule on page 33 , the IMRF Schedule of Changes in the Net Pension Liability and Related Ratios, the IMRF Schedule of Employer Contributions, the Schedule of the Joint Agreement’s Proportionate Share of the Net Pension Liability-Teachers’ Retirement System of the State of Illinois and the Schedule of Employer Contributions-Teachers’ Retirement System of the State of Illinois are presented for purposes of additional analysis and are not a required part of the basic financial statements. The schedule of expenditures of federal awards is presented for purposes of additional analysis as required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards,, and is also not a required part of the basic financial statements.

Supplementary Information

The information provided page 23, 25, 27, 30, and 33 and the schedule of expenditures of federal awards is the responsibility of management and, was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the basic financial statements as a whole. The table of contents references schedules on pages 3, 4, 24, 26, 28, 29, and 32: however, these schedules are not applicable to joint agreements. The 2015 comparative information in the accompanying schedule of expenditures of federal awards was subjected to the auditing procedures applied by us and our report dated October 20, 2015 express an unqualified opinion that such information was fairly stated in all material respects in relation to the 2015 financial statements as a whole.

Other Information The IMRF Schedule of Changes in the Net Pension Liability and Related Ratios, the IMRF Schedule of Employer Contributions, the Schedule of the Joint Agreement’s Proportionate Share of the Net Pension Liability-Teachers’ Retirement System of the State of Illinois and the Schedule of Employer Contributions-Teachers’ Retirement System of the State of Illinois and the Report on Shared Services or Outsourcing on page 31 have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated October 19, 2016, on our consideration of Mid-State Special Education’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Mid-State Special Education’s internal control over financial reporting and compliance.

Mose, Yockey, Brown and Kull, LLC Certified Public Accountants Shelbyville, Illinois October 19, 2016

INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED

ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

To the Executive Committee Mid-State Special Education Morrisonville, Illinois We have audited, in accordance with the 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, the accompanying financial statements of Mid-State Special Education as of and for the fiscal year ended June 30, 2016, and the related notes to the financial statements, which collectively comprise the Joint Agreement’s basic financial statements as listed in the table of contents and have issued our report thereon dated October 19, 2016. Our opinion was adverse because the financial statements are not prepared in accordance with accounting principles generally accepted in the United States of America. However, the financial statements were found to be fairly stated, except for the effects of the omitted disclosures required by Governmental Accounting Standards Board Statement 45, Accounting and Financial Reporting for Post-Employment Benefits Other Than Pensions, on the modified cash basis of accounting, in accordance with regulatory reporting requirements established 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. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered Mid-State Special Education’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Mid-State Special Education’s internal control. Accordingly, we do not express an opinion on the effectiveness of Mid-State Special Education’s internal control. 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 a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the Joint Agreement’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a 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. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

Compliance and Other Matters As part of obtaining reasonable assurance about whether Mid-State Special Education’s financial statements are free from 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. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the Joint Agreement’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Mose, Yockey, Brown & Kull, LLC Certified Public Accountants Shelbyville, Illinois October 19, 2016

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the box on the left, and attach the appropriate findings/comments.

PART A - FINDINGS

1. One or more school board members, administrators, certified school business officials, or other qualifying district employees failed to file economic interest statements pursuant to the Illinois Government Ethics Act. [5 ILCS 420/4A-101]

2. One or more custodians of funds failed to comply with the bonding requirements pursuant to Sections 8-2, 10-20.19 or 19-6 of the School Code.[105 ILCS 5/8-2; 10-20.19; 19-6]

3. One or more contracts were executed or purchases made contrary to the provisions of Section 10-20.21 of the School Code. [105 ILCS 5/10-20.21]4. One or more violations of the Public Funds Deposit Act or the Public Funds Investment Act were noted. [30 ILCS 225/1 et. seq. and 30 ILCS 235/1 et. seq.] 5. Restricted funds were commingled in the accounting records or used for other than the purpose for which they were restricted.6. One or more short-term loans or short-term debt instruments were executed in non-conformity with the applicable authorizing statute or without statutory Authority.

7. One or more long-term loans or long-term debt instruments were executed in non-conformity with the applicable authorizing statute or without statutory Authority.

8. Corporate Personal Property Replacement Tax monies were deposited and/or used without first satisfying the lien imposed pursuant to the State Revenue Sharing Act. [30 ILCS 115/12]

9. One or more interfund loans were made in non-conformity with the applicable authorizing statute or without statutory authorization.10. One or more interfund loans were outstanding beyond the term provided by statute.11. One or more permanent transfers were made in non-conformity with the applicable authorizing statute/regulation or without statutory/regulatory authorization.12. Substantial, or systematic misclassification of budgetary items such as, but not limited to, revenues, receipts, expenditures, disbursements or expenses

were observed.13. The Chart of Accounts used to define and control budget and accounting records does not conform to the minimum requirements imposed by

ISBE rules pursuant to Sections 2-3.27 and 2-3.28 of the School Code. [105 ILCS 5/2-3.27; 2-3.28]14. At least one of the following forms was filed with ISBE late: The FY15 AFR (ISBE FORM 50-35), FY15 Annual Statement of Affairs (ISBE Form 50-37)

and FY16 Budget (ISBE FORM 50-36). Explain in the comments box below. ISBE rules pursuant to Sections 3-15.1, 10-17, and 17-1 of the School Code [105 ILCS 5/3-15.1; 5/10-17; 5/17-1]

15. The district has issued tax anticipation warrants or tax anticipation notes in anticipation of a second year's taxes when warrants or notes inanticipation of current year taxes are still outstanding, as authorized by Sections 17-16 or 34-23 thru 34-27 of the School Code. [105 ILCS 5/17-16 or 34-23 thru 34-27]

16. The district has issued short-term debt against two future revenue sources, such as, but not limited to, tax anticipation warrants and General State Aidcertificates or tax anticipation warrants and revenue anticipation notes.

17. The district has issued school or teacher orders for wages as permitted in Sections 8-16, 32-7.2 and 34-76 of the School Code or issued fundingbonds for this purpose pursuant to Section 19-8 of the School Code. [105 ILCS 5/8-6, 32-7.2, 34-76, and 19-8]

18. The district has for two consecutive years shown an excess of expenditures/other uses over revenues/other sources and beginning fund balanceson its annual financial report for the aggregate totals of the Educational, Operations & Maintenance, Transportation, and Working Cash Funds.

19. Student Activity Funds, Imprest Funds, or other funds maintained by the district were excluded from the audit.

20. Findings, other than those listed in Part A (above), were reported (e.g. student activity fund findings).

21. Federal Stimulus Funds were not maintained and expended in accordance with the American Recovery and Reinvestment Act (ARRA) of 2009. If checked, an explanation must be provided.

22. Check this box if the district is subject to the Property Tax Extension Limitation Law. Effective Date: (Ex: 00/00/0000)

X 23. If the type of Auditor Report designated on the cover page is other than an unqualified opinion and is due to reason(s) other than solely Cash Basis Accounting, please check and explain the reason(s) in the box below.

AUDITOR'S QUESTIONNAIRE

PART B - FINANCIAL DIFFICULTIES/CERTIFICATION Criteria pursuant to Section 1A-8 of the School Code [105 ILCS 5/1A-8]

PART C - OTHER ISSUES

INSTRUCTIONS: If your review and testing of State, Local, and Federal Programs revealed any of the following statements to be true, then check

23 Opinion is adverse due to regulatory basis presentation and qualified due to omission of disclosures required by GASB 45.

Printed: 10/24/2016 03011801060. afr-16-formReference should be made to the auditor's report regarding this information.

(For School Districts who report on an Accrual/Modified Accrual Accounting Basis only)

School districts that report on the accrual/modified accrual basis of accounting must identify where late mandated categorical payments (Acct Codes 3100, 3105, 3110, 3500, and 3510) are recorded. Depending on the accounting procedure these amounts will be used to adjust the Direct Receipts/Revenues in calculation 1 and 2 of the Financial Profile Score.In FY2016, identify those late payments recorded as Intergovermental Receivables, Other Recievables, or Deferred Revenue & Other Current Liabilities or Direct Receipts/Revenue. Payments should only be listed once.

24. Enter the date that the district used to accrue mandated categorical payments Date:

25. For the listed mandated categorical (Revenue Code (3110, 3500, 3510, 3100, 3105) that were vouchered prior to June 30th, but not released until after year endas reported in ISBE FRIS system, enter the amounts that were accrued in the chart below.

3110 3500 3510 3100 3105 TotalDeferred Revenues (490)Mandated Categoricals Payments (3110, 3500, 3510, 3100, 3105) 0

Direct Receipts/RevenueMandated Categoricals Payments (3110, 3500, 3510, 3100, 3105 0

Total 0

* Revenue Code (3110-Sp Ed Personnel, 3510-Sp Ed Transportation, 3500-Regular/Vocational Transportation, 3105-Sp Ed Funding for Children Requiring Services,3100-Sp Ed Private Facilities)

PART E - QUALIFICATIONS OF AUDITING FIRM* School District/Joint Agreement entities must verify the qualifications of the auditing firm by requesting the most current peer review report and the corresponding acceptance letter from the approved peer review program for the current peer review.* A school district/joint agreement who engages with an auditing firm who is not licensed and qualified will be required to complete a new audit by a qualified auditing firm

at the school district's/joint agreement's expense.

Comments Applicable to the Auditor's Questionnaire:

Name of Audit Firm (print)

10/19/2016Signature mm/dd/yyyy


The undersigned affirms that this audit was conducted by a qualified auditing firm and in accordance with the applicable standards [23 Illinois Administrative Code Part 100] and the scope of the audit conformed to the requirements of subsection (a) or (b) of 23 Illinois Administrative Code Part 100 Section 110, as applicable.

PART D - EXPLANATION OF ACCOUNTING PRACTICES FOR LATE MANDATED CATEGORICAL PAYMENTS

Account Name

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91011121314

1516171819202122232425262728293031323334353637383940414243444546474849505152535455565758596061

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 2015 Equalized Assessed Valuation (EAV):

Educational Operations & Maintenance Transportation Combined Total Working Cash

Rate(s): + + = 0.000000

B. Results of Operations *

Receipts/Revenues Disbursements/ Expenditures Excess/ (Deficiency) Fund Balance

16,304,555 15,786,175 518,380 1,870,039* The numbers shown are the sum of entries on Pages 7 & 8, lines 8, 17, 20, and 81 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 + 0 + 0 + 0 +

Other Total0 = 0

** 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, Enter x in a.or b.b. 13.8% for unit districts.

Long-Term Debt Outstanding:

c. Long-Term Debt (Principal only) Acct Outstanding:……….....…………….... 511 0

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 R

District Name: Mid-State Special EducationDistrict Code: 10-011-8010-60County Name: Christian

1. Fund Balance to Revenue Ratio: Total Ratio Score 3Total Sum of Fund Balance (P8, Cells C81, D81, F81 & I81) Funds 10, 20, 40, 70 + (50 & 80 if negative) 1,870,039.00 0.115 Weight 0.35

Funds 10, 20, 40, & 70, 16,304,555.00 Value 1.05 Less: Operating Debt Pledged to Other Funds (P8, Cell C54 thru D74) Minus Funds 10 & 20 0.00

(Excluding C:D57, C:D61, C:D65, C:D69 and C:D73)2. Expenditures to Revenue Ratio: Total Ratio Score 4

Total Sum of Direct Expenditures (P7, Cell C17, D17, F17, I17) Funds 10, 20 & 40 15,786,175.00 0.968 Adjustment 0Funds 10, 20, 40 & 70, 16,304,555.00 Weight 0.35

Less: Operating Debt Pledged to Other Funds (P8, Cell C54 thru D74) Minus Funds 10 & 20 0.00 (Excluding C:D57, C:D61, C:D65, C:D69 and C:D73) 0 Value 1.40Possible Adjustment:

3. Days Cash on Hand: Total Days Score 2Funds 10, 20 40 & 70 1,862,686.00 42.47 Weight 0.10

Total Sum of Direct Expenditures (P7, Cell C17, D17, F17 & I17) Funds 10, 20, 40 divided by 360 43,850.49 Value 0.20

4. Percent of Short-Term Borrowing Maximum Remaining: Total Percent Score #DIV/0!Tax Anticipation Warrants Borrowed (P25, Cell F6-7 & F11) Funds 10, 20 & 40 0.00 #DIV/0! Weight 0.10EAV x 85% x Combined Tax Rates (P3, Cell J7 and J10) (.85 x EAV) x Sum of Combined Tax Rates 0.00 Value #DIV/0!

5. Percent of Long-Term Debt Margin Remaining: Total Percent Score #VALUE!Long-Term Debt Outstanding (P3, Cell H37) 0.00 #VALUE! Weight 0.10Total Long-Term Debt Allowed (P3, Cell H31) Enter x in a.or b. Value #VALUE!

Total Profile Score: #DIV/0! *

Estimated 2017 Financial Profile Designation: #DIV/0!

* 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 be calculated by ISBE.

Total Sum of Cash & Investments (P5, Cell C4, D4, F4, I4 & C5, D5, F5 & I5)

Total Sum of Direct Revenues (P7, Cell C8, D8, F8, & I8)

Total Sum of Direct Revenues (P7, Cell C8, D8, F8 & I8)

ESTIMATED FINANCIAL PROFILE SUMMARY(Go to the following website for reference to the Financial Profile)

www.isbe.net/sfms/p/profile.htm

http://www.isbe.net/sfms/p/profile.htm

Page 5 BASIC FINANCIAL STATEMENTSSTATEMENT OF ASSETS AND LIABILITIES ARISING FROM CASH TRANSACTIONS

STATEMENT OF POSITION AS OF JUNE 30, 2016

Page 5

Print Date: 10/24/201603011801060. afr-16-form The accompanying notes are an integral part of these financial statements.

1

2

345678910111213

14151617181920212223

2425262728293031323334

35363738394041

A B C D E F G H I J K(10) (20) (30) (40) (50) (60) (70) (80) (90)

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 1,861,619Investments 120 1,067Taxes Receivable 130Interfund Receivables 140Intergovernmental Accounts Receivable 150Other Receivables 160Inventory 170Prepaid Items 180Other Current Assets (Describe & Itemize) 190 7,353

Total Current Assets 1,870,039 0 0 0 0 0 0 0 0CAPITAL ASSETS (200)

Works of Art & Historical Treasures 210 Land 220 Building & Building Improvements 230 Site Improvements & Infrastructure 240 Capitalized Equipment 250 Construction in Progress 260 Amount Available in Debt Service Funds 340 Amount 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 0 0 0 0 0 0 0 0 0LONG-TERM LIABILITIES (500)

Long-Term Debt Payable (General Obligation, Revenue, Other) 511Total Long-Term Liabilities

Reserved Fund Balance 714Unreserved Fund Balance 730 1,870,039Investment in General Fixed Assets

Total Liabilities and Fund Balance 1,870,039 0 0 0 0 0 0 0 0

ASSETS (Enter Whole Dollars)

Page 6 BASIC FINANCIAL STATEMENTSSTATEMENT OF ASSETS AND LIABILITIES ARISING FROM CASH TRANSACTIONS

STATEMENT OF POSITION AS OF JUNE 30, 2016

Page 6


1

2

345678910111213

14151617181920212223

2425262728293031323334

35363738394041

A B

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 210 Land 220 Building & Building Improvements 230 Site Improvements & Infrastructure 240 Capitalized Equipment 250 Construction in Progress 260 Amount Available in Debt Service Funds 340 Amount 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

ASSETS (Enter Whole Dollars)

L M NAccount Groups

Agency Fund General Fixed Assets

General Long-Term Debt

0

455,343

542,862

0998,205 0

0

00

998,2050 998,205 0

Page 7 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, 2016

Page 7


1

2

34

56789

10

111213141516171819

20

212223242526272829

30

313233343536373839404142434445

A B C D E F G H I J K(10) (20) (30) (40) (50) (60) (70) (80) (90)

Acct # Educational Operations &


Retirement/ Social Security


RECEIPTS/REVENUES

LOCAL SOURCES 1000 10,590,941 0 0 0 0 0 0 0 0FLOW-THROUGH RECEIPTS/REVENUES FROM ONE DISTRICT TO ANOTHER DISTRICT

20002,234,225 0 0 0

STATE SOURCES 3000 446,807 0 0 0 0 0 0 0 0FEDERAL SOURCES 4000 3,032,582 0 0 0 0 0 0 0 0

Total Direct Receipts/Revenues 16,304,555 0 0 0 0 0 0 0 0

Receipts/Revenues for "On Behalf" Payments 2 3998 4,514,867 Total Receipts/Revenues 20,819,422 0 0 0 0 0 0 0 0

DISBURSEMENTS/EXPENDITURES

Instruction 1000 8,844,046 0 Support Services 2000 4,626,701 0 0 0 0 0 0Community Services 3000 0 0 0 0 Payments to Other Districts & Govermental Units 4000 2,315,428 0 0 0 0 0 0Debt Service 5000 0 0 0 0 0 0 0

Total Direct Disbursements/Expenditures 15,786,175 0 0 0 0 0 0 0

Disbursements/Expenditures for "On Behalf" Payments 2 4180 4,514,867 0 0 0 0 0 0 0Total Disbursements/Expenditures 20,301,042 0 0 0 0 0 0 0Excess of Direct Receipts/Revenues Over (Under) Direct

Disbursements/Expenditures 3 518,380 0 0 0 0 0 0 0 0

OTHER SOURCES/USES OF FUNDS

OTHER SOURCES OF FUNDS (7000)PERMANENT TRANSFER FROM VARIOUS FUNDS

Abolishment of the Working Cash Fund 12 7110

Abatement of the Working Cash Fund 12 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 O&M Fund 47160

Transfer to Excess Fire Prevention & Safety Bond and Interest Proceeds

to Debt Service Fund 5 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 6 7300Transfer to Debt Service to Pay Principal on Capital Leases 7400 0Transfer to Debt Service to Pay Interest on Capital Leases 7500 0Transfer 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 7990Total Other Sources of Funds 0 0 0 0 0 0 0 0 0

OTHER USES OF FUNDS (8000)

Description (Enter Whole Dollars)

Page 8 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, 2016

Page 8


1

2

A B C D E F G H I J K(10) (20) (30) (40) (50) (60) (70) (80) (90)






464748495051

52

53545556575859606162636465666768697071727374757677

7879

8081

PERMANENT TRANSFER TO VARIOUS OTHER FUNDS (8100)

Abolishment or Abatement of the Working Cash Fund 12 8110 0Transfer of Working Cash Fund Interest 12 8120 0Transfer Among Funds 8130Transfer of Interest 8140Transfer from Capital Project Fund to O&M Fund 8150 0Transfer of Excess Fire Prevention & Safety Tax & Interest Proceeds to

O&M Fund 48160

0Transfer of Excess Fire Prevention & Safety Bond and Interest Proceeds

to Debt Service Fund 58170

0Taxes Pledged to Pay Principal on Capital Leases 8410

Grants/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

Grants/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 0 0 0 0 0 0 0 0 0Total Other Sources/Uses of Funds 0 0 0 0 0 0 0 0 0

518,380 0 0 0 0 0 0 0 0Fund Balances - July 1, 2015 1,351,659

Other Changes in Fund Balances - Increases (Decreases) (Describe & Itemize)Fund Balances - June 30, 2016 1,870,039 0 0 0 0 0 0 0 0

Excess of Receipts/Revenues and Other Sources of Funds (Over/Under) Expenditures/Disbursements and Other Uses of Funds

Page 9 STATEMENT OF REVENUES RECEIVED/REVENUESFOR THE YEAR ENDING JUNE 30, 2016

Page 9

Printed Date: 10/24/201603011801060. afr-16-form The accompanying notes are an integral part of these financial statements.

1

2

3

456789101112

131415161718

19202122232425262728293031323334353637383940

4142434445464748495051

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 1100

Designated Purposes Levies (1110-1120) 7

Leasing Purposes Levy 8 1130Special Education Purposes Levy 1140FICA/Medicare Only Purposes Levies 1150Area Vocational Construction Purposes Levy 1160Summer School Purposes Levy 1170Other Tax Levies (Describe & Itemize) 1190Total Ad Valorem Taxes Levied By District 0 0 0 0 0 0 0 0 0

PAYMENTS IN LIEU OF TAXES 1200

Mobile Home Privilege Tax 1210Payments from Local Housing Authorities 1220

Corporate Personal Property Replacement Taxes 9 1230Other Payments in Lieu of Taxes (Describe & Itemize) 1290Total Payments in Lieu of Taxes 0 0 0 0 0 0 0 0 0

TUITION 1300

Regular - Tuition from Pupils or Parents (In State) 1311Regular - 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) 1322Summer 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 10,573,868Special 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 10,573,868

TRANSPORTATION FEES 1400

Regular -Transp Fees from Pupils or Parents (In State) 1411Regular - Transp Fees from Other Districts (In State) 1412Regular - Transp Fees from Other Sources (In State) 1413Regular - Transp Fees from Co-curricular Activities (In State) 1415Regular 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) 1431



Page 10


1

2

A B C D E F G H I J K(10) (20) (30) (40) (50) (60) (70) (80) (90)






525354555657585960616263

64656667

6869707172737475

76777879808182

8384858687888990919293

949596979899100101

CTE - Transp Fees from Other Districts (In State) 1432CTE - Transp Fees from Other Sources (In State) 1433CTE - Transp Fees from Other Sources (Out of State) 1434Special 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 0

EARNINGS ON INVESTMENTS 1500

Interest on Investments 1510 14,732Gain or Loss on Sale of Investments 1520Total Earnings on Investments 14,732 0 0 0 0 0 0 0 0

FOOD SERVICE 1600

Sales to Pupils - Lunch 1611Sales to Pupils - Breakfast 1612Sales to Pupils - A la Carte 1613Sales to Pupils - Other (Describe & Itemize) 1614Sales to Adults 1620Other Food Service (Describe & Itemize) 1690Total Food Service 0

DISTRICT/SCHOOL ACTIVITY INCOME 1700

Admissions - Athletic 1711Admissions - Other (Describe & Itemize) 1719Fees 1720Book Store Sales 1730Other District/School Activity Revenue (Describe & Itemize) 1790Total District/School Activity Income 0 0

TEXTBOOK INCOME 1800

Rentals - Regular Textbooks 1811Rentals - 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 0

OTHER REVENUE FROM LOCAL SOURCES 1900

Rentals 1910Contributions and Donations from Private Sources 1920 697Impact Fees from Municipal or County Governments 1930Services Provided Other Districts 1940 458Refund of Prior Years' Expenditures 1950 563Payments of Surplus Moneys from TIF Districts 1960Drivers' Education Fees 1970


Page 11


1

2

A B C D E F G H I J K(10) (20) (30) (40) (50) (60) (70) (80) (90)






102103104105106107108109

110111112113

114

115

116117118119

120121

122123124125126127128129130131132133134135136137138139140141142143144

Proceeds from Vendors' Contracts 1980School Facility Occupation Tax Proceeds 1983Payment from Other Districts 1991Sale of Vocational Projects 1992Other Local Fees (Describe & Itemize) 1993Other Local Revenues (Describe & Itemize) 1999 623Total Other Revenue from Local Sources 2,341 0 0 0 0 0 0 0 0Total Receipts/Revenues from Local Sources 1000 10,590,941 0 0 0 0 0 0 0 0

FLOW-THROUGH RECEIPTS/REVENUES FROM ONE DISTRICT TO ANOTHER DISTRICT (2000)

Flow-through Revenue from State Sources 2100 1,370,528Flow-through Revenue from Federal Sources 2200 863,697Other Flow-Through (Describe & Itemize) 2300Total Flow-Through Receipts/Revenues from One District to Another District

20002,234,225 0 0 0

RECEIPTS/REVENUES FROM STATE SOURCES (3000)

UNRESTRICTED GRANTS-IN-AID (3001-3099)

General State Aid- Sec. 18-8.05 3001 General State Aid - Hold Harmless/Supplemental 3002 Reorganization Incentives (Accounts 3005-3021) 3005 Other Unrestricted Grants-In-Aid from State Sources (Describe & Itemize)

3099

Total Unrestricted Grants-In-Aid 0 0 0 0 0 0 0 0

RESTRICTED GRANTS-IN-AID (3100 - 3900)

SPECIAL EDUCATIONSpecial Education - Private Facility Tuition 3100Special Education - Funding for Children Requiring Sp ED Services 3105Special Education - Personnel 3110 443,509Special Education - Orphanage - Individual 3120Special Education - Orphanage - Summer Individual 3130Special Education - Summer School 3145Special Education - Other (Describe & Itemize) 3199Total Special Education 443,509 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 3305Bilingual Education Downstate - Transitional Bilingual Education 3310Total Bilingual Ed 0 0


Page 12


1

2

A B C D E F G H I J K(10) (20) (30) (40) (50) (60) (70) (80) (90)






145146147148149150151152153154155156157158159160161162163164165166167168169170

171172173

174

175176

177

178

179180181182

183

184

185186187188

State Free Lunch & Breakfast 3360School Breakfast Initiative 3365Driver Education 3370Adult Ed (from ICCB) 3410Adult Ed - Other (Describe & Itemize) 3499

TRANSPORTATIONTransportation - Regular and Vocational 3500Transportation - Special Education 3510Transportation - Other (Describe & Itemize) 3599Total Transportation 0 0 0 0Learning Improvement - Change Grants 3610Scientific Literacy 3660Truant Alternative/Optional Education 3695Early Childhood - Block Grant 3705Reading Improvement Block Grant 3715Reading 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 3775Technology - Technology for Success 3780State Charter Schools 3815Extended Learning Opportunities - Summer Bridges 3825Infrastructure Improvements - Planning/Construction 3920School Infrastructure - Maintenance Projects 3925

Other Restricted Revenue from State Sources (Describe & Itemize) 3999 3,298

446,807 0 0 0 0 0 0 0 0Total Receipts from State Sources 3000 446,807 0 0 0 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 VITitle VI - Innovation and Flexibility Formula 4100Title VI - District Projects 4105

Total Restricted Grants-In-Aid

UNRESTRICTED GRANTS-IN-AID RECEIVED DIRECTLY FROM FEDERAL GOVT (4001-4009)

RESTRICTED GRANTS-IN-AID RECEIVED FROM FEDERAL GOVT THRU THE STATE (4100-4999)

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 (4045-4090)


Page 13


1

2

A B C D E F G H I J K(10) (20) (30) (40) (50) (60) (70) (80) (90)






189190191192193194195196197198199200201202203204205206207208209210211212213214215216217218219220221222223224225226227228229230231232233234235236237238239240

Title VI - Rural Education Initiative (REI) 4107Title V - Other (Describe & Itemize) 4199Total Title V 0 0 0 0

FOOD SERVICEBreakfast Start-Up Expansion 4200National School Lunch Program 4210Special Milk Program 4215School Breakfast Program 4220Summer Food Service Program 4225Child Adult Care Food Program 4226Fresh Fruits & Vegetables 4240Food Service - Other (Describe & Itemize) 4299Total Food Service 0 0

TITLE ITitle I - Low Income 4300Title I - Low Income - Neglected, Private 4305Title 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 0 0 0 0

TITLE IVTitle IV - Safe & Drug Free Schools - Formula 4400Title IV - 21st Century Comm Learning Centers 4421Title IV - Other (Describe & Itemize) 4499Total Title IV 0 0 0 0

FEDERAL - SPECIAL EDUCATIONFed - Spec Education - Preschool Flow-Through 4600 140,733Fed - Spec Education - Preschool Discretionary 4605Fed - Spec Education - IDEA - Flow Through 4620 2,649,502Fed - Spec Education - IDEA - Room & Board 4625Fed - Spec Education - IDEA - Discretionary 4630Fed - Spec Education - IDEA - Other (Describe & Itemize) 4699Total Federal - Special Education 2,790,235 0 0 0

CTE - PERKINSCTE - Perkins - Title IIIE - Tech Prep 4770CTE - Other (Describe & Itemize) 4799Total CTE - Perkins 0 0 0Federal - Adult Education 4810ARRA - General State Aid - Education Stabilization 4850ARRA - Title I - Low Income 4851ARRA - Title I - Neglected, Private 4852ARRA - Title I - Delinquent, Private 4853ARRA - 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 4862


Page 14


1

2

A B C D E F G H I J K(10) (20) (30) (40) (50) (60) (70) (80) (90)






241242243244245246247248249250251252253254255256257258259260261262263264265266267268269270271272

273274275

ARRA - 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 4870Other ARRA Funds - II 4871Other ARRA Funds - III 4872Other ARRA Funds - IV 4873Other 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 Ed Job Fund Program 4880Total Stimulus Programs 0 0 0 0 0 0 0 0Race to the Top Program 4901Race to the Top - Preschool Expansion Grant 4902Advanced Placement Fee/International Baccalaureate 4904Title III - Immigrant Education Program (IEP) 4905Title III - Language Inst Program - Limited Eng (LIPLEP) 4909Learn & Serve America 4910McKinney Education for Homeless Children 4920Title II - Eisenhower Professional Development Formula 4930Title II - Teacher Quality 4932Federal Charter Schools 4960Medicaid Matching Funds - Administrative Outreach 4991 122,248Medicaid Matching Funds - Fee-for-Service Program 4992 6,837Other Restricted Revenue from Federal Sources (Describe & Itemize) 4999 113,262

3,032,582 0 0 0 0 0 0 0Total Receipts/Revenues from Federal Sources 4000 3,032,582 0 0 0 0 0 0 0 0Total Direct Receipts/Revenues 16,304,555 0 0 0 0 0 0 0 0

Total Restricted Grants-In-Aid Received from the Federal Govt Thru the State

Page 15 STATEMENT OF EXPENDITURES DISBURSED/EXPENDITURES, BUDGET TO ACTUALFOR THE YEAR ENDING JUNE 30, 2016

Page 15


1

2

3

456789

101112131415161718192021222324252627282930313233

343536373839404142434445464748495051

5253

A B C D E F G H I J K L(100) (200) (300) (400) (500) (600) (700) (800) (900)

Funct # Salaries Employee

BenefitsPurchased Services

Supplies & Materials Capital Outlay Other Objects Non-Capitalized

EquipmentTermination

Benefits Total Budget

INSTRUCTION (ED) 1000

Regular Programs 1100 0 0Tuition Payment to Charter Schools 1115 0 0Pre-K Programs 1125 0 0Special Education Programs (Functions 1200-1220) 1200 6,267,489 1,606,009 88,597 29,082 7,991,177 8,184,533Special Education Programs Pre-K 1225 419,779 91,705 3,547 60 515,091 541,432Remedial and Supplemental Programs K-12 1250 0 0Remedial and Supplemental Programs Pre-K 1275 0 0Adult/Continuing Education Programs 1300 0 0CTE Programs 1400 234,778 51,180 7,968 25,160 319,086 227,425Interscholastic Programs 1500 0 0Summer School Programs 1600 15,144 2,148 1,236 164 18,692 20,467Gifted Programs 1650 0 0Driver's Education Programs 1700 0 0Bilingual Programs 1800 0 0Truant Alternative & Optional Programs 1900 0 0Pre-K Programs - Private Tuition 1910 0 0Regular K-12 Programs - Private Tuition 1911 0 0Special Education Programs K-12 - Private Tuition 1912 0 0Special 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 6,937,190 1,751,042 101,348 54,466 0 0 0 0 8,844,046 8,973,857

SUPPORT SERVICES (ED) 2000

SUPPORT SERVICES - PUPILSAttendance & Social Work Services 2110 652,398 86,323 11,739 4,129 754,589 776,022Guidance Services 2120 0 0Health Services 2130 173,276 31,429 363,441 930 569,076 563,587Psychological Services 2140 694,444 92,112 10,536 10,810 807,902 796,450Speech Pathology & Audiology Services 2150 772,985 187,730 9,359 314 8,755 979,143 987,361Other Support Services - Pupils (Describe & Itemize) 2190 0 0Total Support Services - Pupils 2100 2,293,103 397,594 395,075 16,183 0 8,755 0 0 3,110,710 3,123,420

SUPPORT SERVICES - INSTRUCTIONAL STAFFImprovement of Instruction Services 2210 83,523 17,625 4,470 105,618 0Educational Media Services 2220 0 179,117Assessment & Testing 2230 0 0Total Support Services - Instructional Staff 2200 0 0 83,523 17,625 0 4,470 0 0 105,618 179,117

SUPPORT SERVICES - GENERAL ADMINISTRATIONBoard of Education Services 2310 0 0Executive Administration Services 2320 905,125 135,497 189,268 26,609 16,845 24 1,273,368 1,371,762Special Area Administration Services 2330 0 0

Tort Immunity Services 2360 - 2370 0 0

Total Support Services - General Administration 2300 905,125 135,497 189,268 26,609 16,845 24 0 0 1,273,368 1,371,762


10 - EDUCATIONAL FUND (ED)


Page 16


1

2

A B C D E F G H I J K L(100) (200) (300) (400) (500) (600) (700) (800) (900)





Benefits Total BudgetDescription

(Enter Whole Dollars)

5455565758596061626364656667

68697071727374

75

76777879808182838485868788899091

92939495

SUPPORT SERVICES - SCHOOL ADMINISTRATIONOffice of the Principal Services 2410 0 0Other Support Services - School Admin (Describe & Itemize) 2490 0 0Total Support Services - School Administration 2400 0 0 0 0 0 0 0 0 0 0

SUPPORT SERVICES - BUSINESSDirection of Business Support Services 2510 0 0Fiscal Services 2520 54,639 10,224 22,670 87,533 91,501Operation & Maintenance of Plant Services 2540 10,368 9,969 20,337 26,520Pupil Transportation Services 2550 64 64 3,500Food Services 2560 0 0Internal Services 2570 2,907 2,907 14,500Total Support Services - Business 2500 54,639 10,224 33,102 12,876 0 0 0 0 110,841 136,021

SUPPORT SERVICES - CENTRALDirection of Central Support Services 2610 0 0

Planning, Research, Development, & Evaluation Services 2620 0 0Information Services 2630 0 0Staff Services 2640 0 0Data Processing Services 2660 26,164 26,164 26,664Total Support Services - Central 2600 0 0 26,164 0 0 0 0 0 26,164 26,664Other Support Services (Describe & Itemize) 2900 0 0Total Support Services 2000 3,252,867 543,315 727,132 73,293 16,845 13,249 0 0 4,626,701 4,836,984

COMMUNITY SERVICES (ED) 3000 0 0

PAYMENTS TO OTHER DISTRICTS & GOVT UNITS (ED) 4000

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) 4190 0 0Total Payments to Other Govt Units (In-State) 4100 0 0 0 0Payments for Regular Programs - Tuition 4210 0 0Payments for Special Education Programs - Tuition 4220 81,203 81,203 76,528Payments 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 Govt Units -Tuition (In State) 4200 81,203 81,203 76,528Payments for Regular Programs - Transfers 4310 0 0Payments for Special Education Programs - Transfers 4320 2,234,225 2,234,225 2,539,867Payments for Adult/Continuing Ed Programs-Transfers 4330 0 0


Page 17


1

2

A B C D E F G H I J K L(100) (200) (300) (400) (500) (600) (700) (800) (900)







96979899

100101102

103104105106107108109110111112

113114

115116

117

118119120121122123124125126127128129

130

131132133134

135136137138

139140141142

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 0 0

Total Payments to Other Govt Units -Transfers (In-State)4300

0 2,234,225 2,234,225 2,539,867Payments to Other Govt Units (Out-of-State) 4400 0 0Total Payments to Other Govt Units 4000 0 2,315,428 2,315,428 2,616,395

DEBT SERVICES (ED) 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 5150 0 0Total Interest on Short-Term Debt 5100 0 0 0Debt Services - Interest on Long-Term Debt 5200 0 0Total Debt Services 5000 0 0 0

PROVISIONS FOR CONTINGENCIES (ED) 6000 0Total Direct Disbursements/Expenditures 10,190,057 2,294,357 828,480 127,759 16,845 2,328,677 0 0 15,786,175 16,427,236Excess (Deficiency) of Receipts/Revenues Over Disbursements/Expenditures 518,380

SUPPORT SERVICES (O&M) 2000

SUPPORT SERVICES - PUPILSOther Support Services - Pupils (Describe & Itemize) 2190 0

SUPPORT SERVICES - BUSINESSDirection of Business Support Services 2510 0Facilities Acquisition & Construction Services 2530 0Operation & Maintenance of Plant Services 2540 0Pupil Transportation Services 2550 0Food Services 2560 0Total Support Services - Business 2500 0 0 0 0 0 0 0 0 0 0Other Support Services (Describe & Itemize) 2900 0Total Support Services 2000 0 0 0 0 0 0 0 0 0 0

COMMUNITY SERVICES (O&M) 3000 0

PAYMENTS TO OTHER DIST & GOVT UNITS (O&M) 4000

PAYMENTS TO OTHER GOVT UNITS (IN-STATE)Payments for Special Education Programs 4120 0Payments for CTE Programs 4140 0Other Payments to In-State Govt. Units (Describe & Itemize)

41900

Total Payments to Other Govt. Units (In-State) 4100 0 0 0 0Payments to Other Govt. Units (Out of State) 4400 0Total Payments to Other Govt Units 4000 0 0 0 0

DEBT SERVICES (O&M) 5000

DEBT SERVICES - INTEREST ON SHORT-TERM DEBTTax Anticipation Warrants 5110 0Tax Anticipation Notes 5120 0

20 - OPERATIONS & MAINTENANCE FUND (O&M)


Page 18


1

2

A B C D E F G H I J K L(100) (200) (300) (400) (500) (600) (700) (800) (900)







143144145146147148

149150151152

153154

155156157158159160161162163

164165166

167168

169170

171

172173174175176177178

179

180181182183184185186

187188

Corporate Personal Prop. Repl. Tax Anticipation Notes 5130 0State Aid Anticipation Certificates 5140 0Other Interest on Short-Term Debt (Describe & Itemize) 5150 0Total Debt Service - Interest on Short-Term Debt 5100 0 0 0

DEBT SERVICE - INTERST ON LONG-TERM DEBT 5200 0Total Debt Services 5000 0 0 0

PROVISIONS FOR CONTINGENCIES (O&M) 6000

0 0 0 0 0 0 0 0 0 00

PAYMENTS TO OTHER DIST & GOVT UNITS (DS) 4000 0

DEBT SERVICES (DS) 5000

DEBT SERVICES - INTEREST ON SHORT-TERM DEBTTax Anticipation Warrants 5110 0Tax Anticipation Notes 5120 0Corporate Personal Prop. Repl. Tax Anticipation Notes 5130 0State Aid Anticipation Certificates 5140 0Other Interest on Short-Term Debt (Describe & Itemize) 5150 0Total Debt Services - Interest On Short-Term Debt 5100 0 0 0

DEBT SERVICES - INTEREST ON LONG-TERM DEBT 5200 0DEBT SERVICES - PAYMENTS OF PRINCIPAL ON LONG-TERM

DEBT (Lease/Purchase Principal Retired) 11

5300

0DEBT SERVICES - OTHER (Describe & Itemize) 5400 0

Total Debt Services 5000 0 0 0 0

PROVISION FOR CONTINGENCIES (DS) 6000Total Disbursements/ Expenditures 0 0 0 0Excess (Deficiency) of Receipts/Revenues Over Disbursements/Expenditures 0

40 - TRANSPORTATION FUND (TR)

SUPPORT SERVICES (TR)

SUPPORT SERVICES - PUPILSOther Support Services - Pupils (Describe & Itemize) 2190 0

SUPPORT SERVICES - BUSINESSPupil Transportation Services 2550 0Other Support Services (Describe & Itemize) 2900 0Total Support Services 2000 0 0 0 0 0 0 0 0 0 0

COMMUNITY SERVICES (TR) 3000 0

PAYMENTS TO OTHER DIST & GOVT UNITS (TR) 4000

PAYMENTS TO OTHER GOVT UNITS (IN-STATE)Payments for Regular Programs 4110 0Payments for Special Education Programs 4120 0Payments for Adult/Continuing Education Programs 4130 0Payments for CTE Programs 4140 0Payments for Community College Programs 4170 0Other Payments to In-State Govt. Units (Describe & Itemize)

41900

Total Payments to Other Govt. Units (In-State) 4100 0 0 0 0

30 - DEBT SERVICES (DS)

Total Direct Disbursements/Expenditures Excess (Deficiency) of Receipts/Revenues/Over Disbursements/


Page 19


1

2

A B C D E F G H I J K L(100) (200) (300) (400) (500) (600) (700) (800) (900)







189190

191192193194195196197198199

200201202

203204

205206

207

208209210211212213214215216217218219220221222223

224225226227228229230231232233234235236237

PAYMENTS TO OTHER GOVT UNITS (OUT-OF-STATE) 4400 0Total Payments to Other Govt Units 4000 0 0 0 0

DEBT SERVICES (TR) 5000

DEBT SERVICE - INTEREST ON SHORT-TERM DEBTTax Anticipation Warrants 5110 0Tax Anticipation Notes 5120 0Corporate Personal Prop. Repl. Tax Anticipation Notes 5130 0State Aid Anticipation Certificates 5140 0Other Interest on Short-Term Debt (Describe & Itemize) 5150 0Total Debt Services - Interest On Short-Term Debt 5100 0 0 0

DEBT SERVICES - INTEREST ON LONG-TERM DEBT 5200 0DEBT SERVICE - PAYMENTS OF PRINCIPAL ON LONG-TERM

DEBT (Lease/Purchase Principal Retired) 115300

0DEBT SERVICES - OTHER (Describe & Itemize) 5400 0

Total Debt Services 5000 0 0 0

PROVISION FOR CONTINGENCIES (TR) 6000Total Disbursements/ Expenditures 0 0 0 0 0 0 0 0 0 0Excess (Deficiency) of Receipts/Revenues Over Disbursements/Expenditures 0

INSTRUCTION (MR/SS) 1000

Regular Programs 1100 0Pre-K Programs 1125 0Special Education Programs (Functions 1200-1220) 1200 0Special Education Programs - Pre-K 1225 0Remedial and Supplemental Programs - K-12 1250 0Remedial and Supplemental Programs - Pre-K 1275 0Adult/Continuing Education Programs 1300 0CTE Programs 1400 0Interscholastic Programs 1500 0Summer School Programs 1600 0Gifted Programs 1650 0Driver's Education Programs 1700 0Bilingual Programs 1800 0Truants' Alternative & Optional Programs 1900 0Total Instruction 1000 0 0 0

SUPPORT SERVICES (MR/SS) 2000

SUPPORT SERVICES - PUPILSAttendance & Social Work Services 2110 0Guidance Services 2120 0Health Services 2130 0Psychological Services 2140 0Speech Pathology & Audiology Services 2150 0Other Support Services - Pupils (Describe & Itemize) 2190 0Total Support Services - Pupils 2100 0 0 0

SUPPORT SERVICES - INSTRUCTIONAL STAFFImprovement of Instruction Services 2210 0Educational Media Services 2220 0Assessment & Testing 2230 0Total Support Services - Instructional Staff 2200 0 0 0

50 - MUNICIPAL RETIREMENT/SOCIAL SECURITY FUND (MR/SS)


Page 20


1

2

A B C D E F G H I J K L(100) (200) (300) (400) (500) (600) (700) (800) (900)







238239240241242

243244245246247

248249250251252253

254255256257258259260261262263264265266

267268269270271272273

274

275276277278

279280281282283

SUPPORT SERVICES - GENERAL ADMINISTRATIONBoard of Education Services 2310 0Executive Administration Services 2320 0Service Area Administrative Services 2330 0Claims Paid from Self Insurance Fund 2361 0Workers' Compensation or Workers' Occupation Disease Acts Payments

23620

Unemployment Insurance Payments 2363 0Insurance Payments (Regular or Self-Insurance) 2364 0Risk Management and Claims Services Payments 2365 0Judgment and Settlements 2366 0Educational, Inspectional, Supervisory Services Related to Loss Prevention or Reduction

23670

Reciprocal Insurance Payments 2368 0Legal Services 2369 0Total Support Services - General Administration 2300 0 0 0

SUPPORT SERVICES - SCHOOL ADMINISTRATIONOffice of the Principal Services 2410 0Other Support Services - School Administration (Describe & Itemize)

24900

Total Support Services - School Administration 2400 0 0 0SUPPORT SERVICES - BUSINESS

Direction of Business Support Services 2510 0Fiscal Services 2520 0Facilities Acquisition & Construction Services 2530 0Operation & Maintenance of Plant Services 2540 0Pupil Transportation Services 2550 0Food Services 2560 0Internal Services 2570 0Total Support Services - Business 2500 0 0 0

SUPPORT SERVICES - CENTRALDirection of Central Support Services 2610 0

Planning, Research, Development, & Evaluation Services 26200

Information Services 2630 0Staff Services 2640 0Data Processing Services 2660 0Total Support Services - Central 2600 0 0 0Other Support Services (Describe & Itemize) 2900 0Total Support Services 2000 0 0 0

COMMUNITY SERVICES (MR/SS) 3000 0

PAYMENTS TO OTHER DIST & GOVT UNITS (MR/SS) 4000

Payments for Special Education Programs 4120 0Payments for CTE Programs 4140 0Total Payments to Other Govt Units 4000 0 0 0

DEBT SERVICES (MR/SS) 5000

DEBT SERVICE - INTEREST ON SHORT-TERM DEBTTax Anticipation Warrants 5110 0Tax Anticipation Notes 5120 0Corporate Personal Prop. Repl. Tax Anticipation Notes 5130 0


Page 21


1

2

A B C D E F G H I J K L(100) (200) (300) (400) (500) (600) (700) (800) (900)







284285286

287288

289290

291

292293294295296

297298299300301302303

304305

306307

308309

310311312

313314315316317

318319320321322323

324325326327

State Aid Anticipation Certificates 5140 0Other (Describe & Itemize) 5150 0Total Debt Services - Interest 5000 0 0 0

PROVISION FOR CONTINGENCIES (MR/SS) 6000

0 0 0 0Excess (Deficiency) of Receipts/Revenues Over Disbursements/Expenditures 0

SUPPORT SERVICES (CP) 2000

SUPPORT SERVICES - BUSINESSFacilities Acquisition and Construction Services 2530 0Other Support Services (Describe & Itemize) 2900 0Total Support Services 2000 0 0 0 0 0 0 0 0 0 0

PAYMENTS TO OTHER DIST & GOVT UNITS (CP) 4000

PAYMENTS TO OTHER GOVT UNITS (In-State)Payments to Other Govt Units (In-State) 4100 0Payments for Special Education Programs 4120 0Payments for CTE Programs 4140 0Other Payments to In-State Govt. Units (Describe & Itemize) 4190 0Total Payments to Other Govt Units 4000 0 0 0 0

PROVISION FOR CONTINGENCIES (S&C/CI) 6000

0 0 0 0 0 0 0 0 0 0

0

SUPPORT SERVICES - GENERAL ADMINISTRATIONClaims Paid from Self Insurance Fund 2361 0Workers' Compensation or Workers' Occupation Disease Acts Payments

23620

Unemployment Insurance Payments 2363 0Insurance Payments (Regular or Self-Insurance) 2364 0Risk Management and Claims Services Payments 2365 0Judgment and Settlements 2366 0Educational, Inspectional, Supervisory Services Related to Loss Prevention or Reduction

23670

Reciprocal Insurance Payments 2368 0Legal Services 2369 0Property Insurance (Buildings & Grounds) 2371 0Vehicle Insurance (Transporation) 2372 0Total Support Services - General Administration 2000 0 0 0 0 0 0 0 0 0 0

DEBT SERVICES (TF) 5000

DEBT SERVICES - INTEREST ON SHORT-TERM DEBTTax Anticipation Warrants 5110 0Corporate Personal Prop. Repl. Tax Anticipation Notes 5130 0

60 - CAPITAL PROJECTS (CP)

Excess (Deficiency) of Receipts/Revenues Over Disbursements/Expenditures

Total Disbursements/ Expenditures

Total Disbursements/Expenditures

70 - WORKING CASH (WC)

80 - TORT FUND (TF)


Page 22


1

2

A B C D E F G H I J K L(100) (200) (300) (400) (500) (600) (700) (800) (900)







328

329

330331332333

334

335336337338339340341

342

343344

345346347348349350

351352

353354

355

Other Interest or Short-Term Debt 5150 0

Total Debt Services - Interest on Short-Term Debt 5000 0 0 0

PROVISIONS FOR CONTINGENCIES (TF) 6000

Total Disbursements/Expenditures 0 0 0 0 0 0 0 0 0 00

SUPPORT SERVICES (FP&S) 2000SUPPORT SERVICES - BUSINESS

Facilities Acquisition & Construction Services 2530 0Operation & Maintenance of Plant Services 2540 0Total Support Services - Business 2500 0 0 0 0 0 0 0 0 0 0Other Support Services (Describe & Itemize) 2900 0Total Support Services 2000 0 0 0 0 0 0 0 0 0 0

PAYMENTS TO OTHER DIST & GOVT UNITS (FP&S) 4000Other Payments to In-State Govt. Units (Describe & Itemize)

41900

Total Payments to Other Govt Units 4000 0 0 0

DEBT SERVICES (FP&S) 5000

DEBT SERVICES- INTEREST ON SHORT-TERM DEBTTax Anticipation Warrants 5110 0Other Interest on Short-Term Debt (Describe & Itemize) 5150 0Total Debt Service - Interest on Short-Term Debt 5100 0 0 0

DEBT SERVICES - INTEREST ON LONG-TERM DEBT 5200 0

Debt Service - Payments of Principal on Long-Term Debt 15

(Lease/Purchase Principal Retired)

5300

0Total Debt Service 5000 0 0 0

PROVISION FOR CONTINGENCIES (FP&S) 6000Total Disbursements/Expenditures 0 0 0 0 0 0 0 0 0 0Excess (Deficiency) of Receipts/Revenues Over Disbursements/Expenditures 0

90 - FIRE PREVENTION & SAFETY FUND (FP&S)

Excess (Deficiency) of Receipts/Revenues Over

MID-STATE SPECIAL EDUCATION MORRISONVILLE, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2016 Note 1 - Summary of Significant Accounting Policies

Mid-State Special Education is a four county joint agreement created in 1998 for the purpose of providing services to children with special needs, ages 3 to 21, who reside in 16 school districts in Bond, Fayette, Christian, and Montgomery counties. Approximately 3,000 students receive special education services from the member districts, which have a combined enrollment in excess of 16,000 students. The Joint Agreement is governed by an Executive Committee comprised of the superintendents of the member school districts. Prior to July 1, 1998, the Taylorville School District served as administrative district to the joint agreement. However, on July 1, 1998, the joint agreement became a separate legal entity recognized by the State of Illinois. The Joint Agreement’s accounting policies conform to the modified cash basis of accounting as defined by the Illinois State Board of Education Audit Guide and comply with regulatory provisions prescribed by the Illinois State Board of Education. A. Principles used to Determine Scope of Entity

The Joint Agreement's reporting entity includes the Joint Agreement's governing board and all related organizations for which the Joint Agreement exercises oversight responsibility. The Joint Agreement has developed criteria to determine whether outside agencies with activities that benefit the members of the Joint Agreement, should be included within its financial reporting entity. The criteria include, but are not limited to, whether the Joint Agreement 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 member districts 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 Mid-State’s financial statements because the Joint Agreement does not control the assets, operations or management of the member districts. In addition, the Joint Agreement is not aware of any entity that would exercise such oversight that would result in the Joint Agreement being considered a component unit of the entity. The Joint Agreement has divided its service area into three sub regions. Each sub region is managed by a board comprised of the superintendents of the individual school districts of the sub regions. While separate accounting records are maintained for each sub region, the Mid-State Special Education Joint Agreement is the only entity recognized by the Illinois State Board of Education for reporting purposes.

B. Basis of Presentation - Fund Accounting

The accounts of the Joint Agreement 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, revenues received and expenditures disbursed.

1

MID-STATE SPECIAL EDUCATION MORRISONVILLE, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2016 Note 1 – Continued

The following fund type and account group are used by the Joint Agreement: Educational Fund

The Educational Fund is the general operating fund of the Joint Agreement. It is used to account for all financial resources. General Fixed Assets Account Group The accounting and reporting treatment applied to the capital assets associated with a fund are determined by its measurement focus. Capital assets used in governmental fund type operations are accounted for in the General Fixed Assets Account Group, rather than in the governmental funds. The account group is not a "fund." It is concerned only with the measurement of financial position. It is not involved with measurement of results of operations. Educational Fund - Measurement Focus The financial statements of the Educational Fund 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 its statement of assets and liabilities. Its reported fund balance (net current assets) is considered a measure of "available spendable resources." The Educational Fund operating statements present increases (cash receipts and other financing sources) and decreases (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.

C. 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 Joint Agreement maintains its accounting records for the governmental fund and account group on the modified cash basis of accounting under guidelines prescribed by the Illinois State Board of Education. Accordingly, revenues are recognized and recorded in the accounts when 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 previous cash transactions. Liabilities of a fund, similarly, result from previous cash transactions.

2


Modified cash-basis financial statements omit recognition of receivables and payables and other accrued and deferred items that do not arise from previous cash transactions.

D. Total Columns

The total columns on all statements are captioned Memorandum Only to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations, or changes in financial position in conformity with accounting principles generally accepted in the United States of America. Neither is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.

E. Budgets and Budgetary Accounting The budgets for the sub-region and the joint agreement are prepared on the modified 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 105 ILCS 5/17-1 of the Illinois Compiled Statutes. The Joint Agreement’s original budget was passed on August 24, 2015 and was amended on March 21, 2016. Total fund expenditures disbursed may not legally exceed the budgeted amounts. The budget lapses at the end of each fiscal year. The Joint Agreement follows these procedures in establishing the budgetary data reflected in the financial statements:

1. Prior to July 1, the management submits to the Executive Committee 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. Prior to September 1, the budget is legally adopted through passage of a resolution. 3. Formal budgetary integration is employed as a management control device during the year.

4. The Executive Committee may make transfers between the various items in any fund not

exceeding in the aggregate 10% of the total of such fund as set forth in the budget. 5. The Executive Committee may amend the budget (in other ways) by the same procedures

required of its original adoption.

F. Investments

Investments are recorded in accordance with GASB Statement No. 72, Fair Value Measurement and Application. Accordingly, the change in fair value of investments is recognized as an increase or decrease to investment assets and investment income. Gains or losses on the sale of investments are recognized upon realization. The Joint Agreement has adopted a formal written investment policy. The institutions in which investments are made must be approved by the Board of Education. The Joint Agreement’s investments consist of interest bearing demand deposits and an investment in an external investment pool, which are exempt from GASB Statement No. 72 fair value measurements.

3


G. Inventories

The Joint Agreement does not maintain inventories that would be material to the financial statements and therefore expenses items as they are purchased.

H. Capital Assets

Capital assets have been acquired for general governmental purposes. At the time of purchase, assets are recorded as expenditures disbursed in the Educational Fund and capitalized at cost in the General Fixed Assets Account Group. Donated capital assets are stated at estimated fair market value as of the date of acquisition. The capitalization threshold for all assets is $500. There are no lease/purchase contracts outstanding at June 30, 2016. Depreciation accounting is not considered applicable, as the joint agreement is not required to calculate a per capita tuition charge. However, depreciation calculated on the Schedule of Capital Outlay and Depreciation was $51,925 for the joint agreement for the year ending June 30, 2016. The estimated useful lives for capital assets are as follows: Estimated Useful Life

Property Type (years) Building Permanent 50 Capitalized-Equipment 3-10

I. Use of Estimates

The preparation of financial statements in conformity with the modified cash basis of accounting requires the Joint Agreement 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 received and expenditures disbursed during the reporting period. Actual results could differ from these estimates. The most sensitive estimate affecting the financial statements is the estimate of depreciation expense based on the estimated useful lives by asset type.

4

MID-STATE SPECIAL EDUCATION MORRISONVILLE, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2016 Note 2 - Cash and Investments

Cash and investments as of June 30, 2016 consist of the following:

Deposits with financial institutions $ 1,861,619 Investment in External Investment Pool 1,067

$ 1,862,686 Investments Authorized by Illinois Compiled Statutes The Joint Agreement is allowed to invest in securities as authorized by 30 ILCS 235/2 and 235/6 and 105 ILCS 5/8-7 of the Illinois Compiled Statutes. The joint agreement’s investment policy is consistent with Illinois Compiled Statutes.

Disclosures Relating to Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The joint agreement’s investment policy does not specifically address interest rate risk; however, one of the ways that the Joint Agreement manages its exposure to interest rate risk is by limiting its purchases of long term investments. At June 30, 2016 Mid-State Special Education’s investments were deposits in financial institutions and in the Illinois Funds external investment pool. The deposits, including the investment in the external investment pool, are all demand deposits and therefore, are not highly sensitive to interest rate fluctuations. Disclosures Relating to Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The Joint Agreement’s deposits with financial institutions are not subject to credit risk rating. The external investment pool has been rated AAAm. The joint agreement’s investment policy does not address credit risk. Concentration of Credit Risk Neither the joint agreement’s investment policy nor the Illinois Compiled Statutes contain limitations on the amount that can be invested in any one issuer. Deposits with financial institutions and investments in external investment pools are exempt from the 5% investment in any one issuer disclosure.

Custodial Credit Risk Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. Illinois Compiled Statutes do not contain requirements that would limit the exposure to custodial credit risk for deposits. However, the joint agreement’s investment policy requires that all amounts deposited or invested with financial institutions in excess of any insurance limit be collateralized.

5


As the joint agreement is considered one legal entity, the collateral limitations apply to the entity as a whole. As of June 30, 2016, $1,748,325 of the Joint Agreement’s deposit balances in excess of federal depository insurance limits were held in accounts collateralized by securities held by the pledging financial institution in the joint agreement’s name. None of the Joint Agreement’s deposits with financial institutions in excess of federal depository insurance limits were held in uncollateralized accounts. Investment in External Investment Pool The Illinois Funds was created by the General Assembly in 1975 to permit state and local government agencies to pool their investment funds. The Illinois State Treasurer’s division, “The Illinois Funds Administrative Office”, provides regulatory oversight for the Fund. The Illinois Funds invests in U.S. Treasuries, Treasury-only money market funds, repurchase agreements backed by U.S. Treasuries and certificates of deposit at Illinois financial institutions backed by U.S. Treasuries. The Illinois Funds perfects collateral on all investments in the aggregate and in the case of certificates of deposit perfected collateral is on amounts in excess of the FDIC limits. The Illinois Funds are rated AAAm by Standard and Poors. The value of the joint agreement’s investment in the pool is reported at cost, which approximated market. Investors are not required to maintain account balances. Foreign currency risk Foreign currency risk is the risk that changes in foreign exchange rates will adversely affect the fair values of an investment or deposit. None of the Joint Agreement’s investments are directly subject to foreign currency risk. The Joint Agreement’s investment policy does not address foreign currency risk.

Note 3 - Changes in Capital Assets

Balance, Balance, July 1, 2015 Additions Deletions June 30, 2016

Capital Assets being Depreciated: Building & Building Improvements $ 455,343 $ -- $ -- $ 455,343 Capitalized Equipment 543,364 16,845 17,347 542,862 Total Capital Assets $ 998,707 $ 16,845 $ 17,347 $ 998,205 Accumulated Depreciation: Building & Building Improvements $ 57,303 $ 9,107 $ -- $ 66,410 Capitalized Equipment 381,083 42,818 17,347 406,554

Total Accumulated Depreciation $ 438,386 $ 51,925 $ 17,347 $ 472,964 Capital Assets, Net $ 560,321 $ (35,080) $ -- $ 525,241

6

MID-STATE SPECIAL EDUCATION MORRISONVILLE, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2016 Note 4 - Retirement Fund Commitments

A. Teachers’ Retirement System of the State of Illinois General Information about the Pension Plan

a. Plan Description The Joint Agreement 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. TRS members include all active non-annuitants who are employed by a TRS-covered employer to provide services for which teacher licensure is required. 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 TRS Board of Trustees is responsible for the System’s administration. TRS issues a publicly available financial report that can be obtained at http://trs.illinois.gov/pubs/cafr; by writing to TRS at 2815 W. Washington, P. O. Box 19253, Springfield, IL 62794; or by calling (888)877-0890, option 2.

b. Benefits provided

TRS provides retirement, disability, and death benefits. Tier 1 members have TRS or reciprocal system service prior to January 1, 2011. Tier 1 members qualify for retirement benefits at age 62 with five years of service, at age 60 with 10 years, or age 55 with 20 years. The benefit is determined by the average of the four highest year of creditable earnings within the last 10 years of creditable service and the percentage of average salary to which the member is entitled. Most members retire under a formula that provides 2.2 percent of final average salary up to a maximum of 75 percent with 34 years of service. Disability and death benefits are also provided. Tier II members qualify for retirement benefits at age 67 with 10 years of service, or a discounted annuity can be paid at age 62 with 10 years of service. Creditable earnings for retirement purposes are capped and the final average salary is based on the highest consecutive eight years of creditable service rather than the last four. Disability provisions for Tier II are identical to those of Tier I. Death benefits are payable under a formula that is different from Tier I. Essentially all Tier I retirees receive an annual 3 percent increase in the current retirement benefit beginning January 1 following the attainment of age 61 or on January 1 following the member’s first anniversary in retirement, whichever is later. Tier II annual increases will be the lesser of three percent of the original benefit or one-half percent of the rate of inflation beginning January 1 following attainment of age 67 or on January 1 following the member’s first anniversary in retirement, whichever is later.

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http://trs.illinois.gov/pubs/cafr

MID-STATE SPECIAL EDUCATION MORRISONVILLE, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2016 Note 4 - Continued

Contributions The State of Illinois maintains the primary responsibility for funding TRS. The Illinois Pension Code, as amended by Public Act 88-0593 and subsequent acts, provides that for years 2010 through 2045, the minimum contribution to the System for each fiscal year shall be an amount determined to be sufficient to bring the total assets of the System up to 90 percent of the total actuarial liabilities of the System by the end of fiscal year 2045. Contributions from active members and TRS contributing employers are also required by the Illinois Pension Code. The contribution rates are specified in the pension code. The active member contribution rate for the year ended June 30, 2016, was 9.4 percent of creditable earnings. The member contribution, which may be paid on behalf of employees by the Joint Agreement, is submitted to TRS by the Joint Agreement.

a. On Behalf Contributions to TRS

The State of Illinois makes employer pension contributions on behalf of the Joint Agreement. For the year ended June 30, 2016, State of Illinois contributions recognized by the Joint Agreement were based on the State’s proportionate share of the collective net pension liability associated with the Joint Agreement, and the Joint Agreement recognized revenue and expenditures of $4,423,438 in pension contributions from the State of Illinois.

b. Formula Contributions

Employers contribute 0.58 percent of total creditable earnings for the 2.2 formula change. The contribution rate is specified by statute. Contributions for the year ended June 30, 2016, were $49,560, and would be deferred because they were paid after the June 30, 2015 measurement date.

c. Federal and Special Trust Fund Contributions

When TRS members are paid from federal and special trust funds administered by the Joint Agreement, there is a statutory requirement for the Joint Agreement to pay an employer pension contribution from those funds. Under a policy adopted by the TRS Board of Trustees that has been in effect since the fiscal year ended June 30, 2006, employer contributions for employees paid from federal and special trust funds will be the same as the state contribution rate to TRS. Public Act 98-0674 now requires the two rates to be the same. For the year ended June 30, 2016, the employer pension contribution was 36.06 percent of salaries paid from federal and special trust funds. For the year ended June 30, 2016, salaries totaling $132,139 were paid from federal and special trust funds that required employer contributions of $47,649. These contributions would be deferred because they were paid after the June 30, 2015 measurement date.

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d. Employer Retirement Cost Contributions

Under GASB Statement No. 68, contributions that an employer is required to pay because of a TRS member retiring are categorized as specific liability payments. The Joint Agreement is required to make a one-time contribution to TRS for members retiring under the Early Retirement Option (ERO). The payments vary depending on the member’s age and salary. The maximum employer ERO contribution under the current program is 146.5 percent and applies when the member is age 55 at retirement. For the year ended June 30, 2016, the Joint Agreement paid $0 to TRS for employer ERO contributions.

The Joint Agreement is also required to make a one-time contribution to TRS for members granted salary increases over 6 percent if those salaries are used to calculate a retiree’s final average salary. A one-time contribution is also required for members granted sick leave days in excess of the normal annual allotment if those days are used as TRS service credit. For the year ended June 30, 2016, the Joint Agreement paid $0 to TRS for employer contributions due on salary increases in excess of 6 percent and $0 for sick leave days granted in excess of the normal annual allotment.

Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2016, the Joint Agreement has a liability for its proportionate share of the net pension liability (first amount shown below) that reflected a reduction for state pension support provided to the employer. The State’s support and total are for disclosure purposes only. The amount committed by the Joint Agreement as its proportionate share of the net pension liability, the related state support, and the total portion of the net pension liability that was associated with the Joint Agreement were as follow: Joint Agreement’s proportionate share of the net pension liability $ 2,086,992 State’s proportionate share of the net pension liability associated with the Joint Agreement 53,991,490 Total $ 56,078,482

The net pension liability was measured as of June 30, 2015, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2014, and rolled forward to June 30, 2015. The Joint Agreement’s proportion of the net pension liability was based on the Joint Agreement’s share of contributions to TRS for the measurement year ended June 30, 2015, relative to the projected contributions of all participating TRS employers and the State during that period. At June 30, 2015 the Joint Agreement’s proportion was 0.0031857577 percent, which is an increase (decrease) of 0.0086 from the proportion measured as of June 30, 2014.

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For the year ended June 30, 2016, the employer recognized pension expenditures of $4,423,438 and receipts of $4,423,438 for support provided by the state. At June 30, 2016 the employer had deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Outflows of Resources

Deferred Inflows of Resources

Differences between expected and actual experience $ 776 $ 2,288 Net Difference between projected and actual earnings on pension plan investments 41,331 73,079 Changes of assumptions 28,861 0 Changes in proportion and differences between employer contributions and proportionate share of contributions 682,871 0 Employer contributions subsequent to the measurement date 97,209 0 Total $851,048 $ 75,367

$97,209 included as deferred outflows of resources related to pensions resulting from employer contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the reporting year ended June 30, 2017. Other amounts included as deferred outflows of resources and deferred inflows of resources related to pensions will be included in pension expense as follows:

Year ended June 30:

Net Deferred Outflows

(Inflows) of Resources

2017 $182,800 2018 $182,800 2019 $182,800 2020 $130,071

Actuarial Assumptions The total pension liability in the June 30, 2015 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 3.00 percent Salary Increases varies by amount of service credit Investment Rate of Return 7.50 percent, net of pension plan investment expense, including

inflation Mortality rates were based on the RP-2014 White Collar Table with adjustments as appropriate for TRS experience. The rates are used on a fully generated basis using projection table MP-2014.

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The actuarial assumptions for the years ended June 30, 2015 and 2014 were different. The actuarial assumptions used in the June 30, 2015, valuation were based on the 2015 actuarial experience analysis. The investment return assumption remained at 7.5 percent, salary increase assumptions were lowered, retirement rates were increased, mortality updates were made, and other assumptions were revised. The actuarial assumptions used in the June 30, 2014, valuation were based on updates to economic assumptions adopted in 2014 which lowered the investment return assumption from 8.0 percent to 7.5 percent. The salary increase and inflation assumptions were also lowered from their 2013 levels. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class that were used by the actuary are summarized in the following table:

Asset Class Target

Allocation Long-Term Expected Real Rate of Return

U.S. Large Cap 18% 7.53% Global Equity Excluding U.S. 18% 7.88% Aggregate Bonds 16% 1.57% U.S. TIPS 2% 2.82% NCREIF 11% 5.11% Opportunistic Real Estate 4% 9.09% ARS 8% 2.57% Risk Parity 8% 4.87% Diversified Inflation Strategy 1% 3.26% Private Equity 14% 12.33% Total 100%

Discount Rate At June 30, 2015, the discount rate used to measure the total pension liability was a blended rate of 7.47 percent, which was a change from the June 30, 2014, rate of 7.50 percent. The projection of cash flows used to determine the discount rate assumed that employee contributions, employer contributions, and state contributions will be made at the current statutorily-required rates. Based on those assumptions, TRS’s fiduciary net position at June 30, 2015, was not projected to be available to make all projected future benefits payments of current active and inactive members and all benefit recipients. Tier I’s liability is partially funded by Tier II members, as the Tier II member contribution is higher than the cost of Tier II benefits. Due to this subsidy, contributions from future members in excess of the service cost are also included in the determination of the discount rate. Despite the subsidy, all projected future payments are not covered, so a slightly lower long-term expected rate of return on TRS investments was applied to all periods of projected benefit payments to determine the total pension liability.

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At June 30, 2014, the discount rate used to measure the total pension liability was 7.50 percent. The discount rate was the same as the actuarially-assumed rate of return on investments that year because TRS’s fiduciary net position and the subsidy provided by Tier II were sufficient to cover all projected benefit payments. Sensitivity of the Joint Agreement’s Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the Joint Agreement’s proportionate share of the net pension liability calculated using the discount rate of 7.47 percent, as well as what the Joint Agreement’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percent-point lower (6.47 percent) or 1-percentage-point higher (8.47 percent) than the current rate.

1% Decrease (6.47%)

Current Discount Rate (7.47%)

1% Increase (8.47%)

Joint Agreement’s Proportionate Share of the net pension liability $2,579,011 $2,086,992 $1,683,524

TRS Fiduciary Net Position Detailed information about the TRS’s fiduciary net position as of June 30, 2015 is available in the separately issued TRS Comprehensive Annual Financial Report. B. Illinois Municipal Retirement Fund

IMRF Plan Description

The Joint Agreement’s defined benefit pension plan for regular employees provides retirement and disability benefits, post-retirement increases, and death benefits to plan members and beneficiaries. The Joint Agreement’s plan is managed by the Illinois Municipal Retirement Fund (IMRF), the administrator of a multi-employer public pension fund. A summary of IMRF’s pension benefits is provided in the “Benefits Provided” section of this document. Details of all benefits are available from IMRF. 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 Comprehensive Annual Financial Report that includes financial statements, detailed information about the pension plan’s fiduciary net position, and required supplementary information. The report is available for download at www.imrf.org.

Benefits Provided

IMRF has three benefit plans. The vast majority of IMRF members participate in the Regular Plan (RP). The Sheriff’s Law Enforcement Personnel (SLEP) plan is for sheriffs, deputy sheriffs, and selected police chiefs. Counties could adopt the Elected County Official (ECO) plan for officials elected prior to August 8, 2011 (the ECO plan was closed to new participants after that date).

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All three IMRF benefit plans have two tiers. Employees hired before January 1, 2011, are eligible for Tier I benefits. Tier I employees are vested for pension benefits when they have at least eight years of qualifying service credit. Tier I employees who retire at age 55 (at reduced benefits) or after age 60 (at full benefits) with eight 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 to a maximum of 75% of their final rate of earnings. Final rate of earnings is the highest total earnings during any consecutive 48 months within the last 10 years of service, divided by 48. Under Tier 1, the pension is increased by 3% of the original amount on January 1 every year after retirement.

Employees hired on or after January 1, 2011, are eligible for Tier 2 benefits. For Tier 2 employees, pension benefits vest after ten years of service. Participating employees who retire at age 62 (at reduced benefits) or after age 67 (at 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 to a maximum of 75% of their final rate of earnings. Final rate of earnings is the highest total earnings during any 96 consecutive months within the last 10 years of service, divided by 96. Under Tier 2, the pension is increased on January 1 every year after retirement, upon reaching age 67, by the lessor of:

• 3% of the original pension amount, or

• ½ of the increase in the Consumer Price Index of the original pension amount.

Employees covered by Benefit Terms

As of December 31, 2015, the following employees were covered by the benefit terms:

Regular Plan IMRF Retirees and Beneficiaries currently receiving benefits 75 Inactive Plan Members entitled to but not yet receiving benefits 178 Active Members 140 Total 393

ECO Plan IMRF Retirees and Beneficiaries currently receiving benefits 1 Inactive Plan Members entitled to but not yet receiving benefits 0 Active Members 0 Total 1

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Contributions

As set by statute, the Joint Agreement’s Regular Plan Members are required to contribute 4.5% of their annual covered salary. The statute requires employers to contribute the amount necessary, in addition to member contributions, to finance the retirement coverage of its own employees. The Joint Agreement’s annual contribution rate for calendar year 2015 was 11.26%. For the fiscal year ended June 30, 2016, the Joint Agreement contributed $272,754 to the plan. The Joint Agreement 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 IMRF’s Board of Trustees, while the supplemental retirement benefits rate is set by statute.

Net Pension Liability

The Joint Agreement’s net pension liability was measured as of December 31, 2015. The total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date.

Actuarial Assumptions

The following are the methods and assumptions used to determine total pension liability at December 31, 2015:

• The Actuarial Cost Method used was Entry Age Normal

• The Asset Valuation Method used was Market Value of Assets.

• The Inflation Rate was assumed to be 3.5%.

• Salary Increases were expected to be 3.75% to 14.50%, including inflation.

• The Investment Rate of Return was assumed to be 7.50%.

• Projected Retirement Age was from the Experience-based Table of Rates, specific to the type of eligibility condition, last updated for the 2014 valuation according to an experience study from years 2011 to 2013.

• The IMRF-specific rates for Mortality (for non-disabled retirees) were developed from the

RP-2014 Blue Collar Health Annuitant Mortality Table with adjustments to match current IMRF experience.

• For Disabled Retirees, an IMRF-specific mortality table was used with fully generational

projection scale MP-2014 (base year 2014). The IMRF-specific rates were developed from the RP-2014 Disabled Retirees Mortality Table, applying the same adjustments that were applied for non-disabled lives.

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• For Active Members, an IMRF-specific mortality table was used with fully generational projection scale MP-2014 (base year 2014). The IMRF-specific rates were developed from the RP-2014 Employee Mortality Table with adjustments to match current IMRF experience.

• The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense, and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return to the target asset allocation percentage and adding expected inflation. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table:

Asset Class

Portfolio Target

Percentage

Long-Term Expected Real Rate of Return

Domestic Equity 38% 7.39% International Equity 17% 7.59% Fixed Income 27% 3.00% Real Estate 8% 6.00% Alternative Investments 9% 2.75-8.15% Cash Equivalents 1% 2.25% Total 100%

Single Discount Rate

A Single Discount Rate of 7.5% was used to measure the total pension liability. The projection of cash flow used to determine this Single Discount Rate assumed that the plan members’ contributions will be made at the current contribution rate, and that employer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. The Single Discount Rate reflects:

1. The long-term expected rate of return on pension plan investments (during the period in which the fiduciary net position is projected to be sufficient to pay benefits), and

2. The tax-exempt municipal bond rate based on an index of 20-year general obligation bonds

with an average AA credit rating (which is published by the Federal Reserve) as of the measurement date (to the extent that the contributions for use with the long-term expected rate of return are not met).

For the purpose of the most recent valuation, the expected rate of return on plan investments is 7.5%, the municipal bond rate is 3.57%, and the resulting single discount rate is 7.50%.

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Changes in the Net Pension Liability

Regular Plan

Total Pension Liability

(A)

Plan Fiduciary Net

Position (B)

Net Pension Liability (A) – (B)

Balances at December 31, 2014 $7,715,217 $7,433,013 $ 282,114 Changes for year: Service Cost 271,171 -- 271,171 Interest on the Total Pension Liability 580,676 -- 580,676 Changes of Benefit Terms -- -- -- Differences Between Expected and Actual Experience of the Total Pension Liability (66,975) -- (66,975) Changes of Assumptions -- -- -- Contributions – Employer -- 272,889 (272,889) Contributions – Employees -- 109,059 (109,059) Net Investment Income -- 37,578 (37,578) Benefit Payments, including Refunds of Employee Contributions (216,731) (216,731) -- Other (Net Transfer) -- (271,487) (271,487) Net Changes $ 568,141 $ (68,692) $ 636,833 Balances at December 31, 2015 $8,283,268 $7,364,321 $ 918,947

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ECO Plan

Total Pension Liability

(A)

Plan Fiduciary Net

Position (B)

Net Pension Liability (A) – (B)

Balances at December 31, 2014 $ 56,855 $ 53,901 $ 2,954 Changes for year: Service Cost -- -- -- Interest on the Total Pension Liability 4,264 -- 4,264 Changes of Benefit Terms -- -- -- Differences Between Expected and Actual Experience of the Total Pension Liability (10,480) -- (10,480) Changes of Assumptions -- -- -- Contributions – Employer -- -- -- Contributions – Employees -- -- -- Net Investment Income -- 270 (270) Benefit Payments, including Refunds of Employee Contributions -- -- -- Other (Net Transfer) -- (3,524) 3,524 Net Changes $ (6,216) $ (3,254) $ (2,962) Balances at December 31, 2015 $ 50,639 $ 50,647 $ (8) Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the plans’ net pension liability, calculated using a Single Discount Rate of 7.50%, as well as what the plans’ net pension liability would be if it were calculated using a Single Discount Rate that is 1% lower or 1% higher:

Regular Plan 1% Lower

(6.50%)

Current Discount (7.50%)

1% Higher (8.50%)

Net Pension Liability $2,172,839 $918,947 $(95,350)

ECO Plan 1% Lower

(6.50%)

Current Discount (7.50%)

1% Higher (8.50%)

Net Pension Liability $4,745 $(8) $(4,104)

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Pension Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources Related to Pensions For the year ended June 30, 2016 on the modified cash basis, the Joint Agreement recognized pension expense of $272,754. For the year ended June 30, 2016, under GASB No. 68, the Joint Agreement recognized pension expense of $609,436 for the regular plan and $(5,750) for the ECO Plan. At June 30, 2016, the Joint Agreement reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Regular Plan

Deferred Amounts Related to Pensions


(A)


(B)

Net Deferred Outflows or (Inflows) of Resources

(A)-(B) Deferred Amounts to be Recognized in Pension Expense in Future Periods

Differences between expected and actual experience $ -- $ 112,188 $(112,188) Changes of assumptions 144,054 -- 144,054 Net difference between projected and actual earnings on pension plan investments 470,476 -- 470,476

Total Deferred Amounts to be recognized in pension expense in future periods $ 614,530 $ 112,188 $ 502,342 Pension Contributions made subsequent to the Measurement Date $ 138,082 $ -- $ 138,082 Total Deferred Amounts Related to Pensions $ 752,612 $ 112,188 $ 640,424

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ECO Plan

Deferred Amounts Related to Pensions



Net Deferred Outflows or (Inflows) of Resources

Deferred Amounts to be Recognized in Pension Expense in Future Periods

Differences between expected and actual experience $ -- $ -- $ -- Changes of assumptions -- -- -- Net difference between projected and actual earnings on pension plan investments 3,284 -- 3,284

Total Deferred Amounts to be recognized in pension expense in future periods $ 3,284 $ -- $ 3,284 Pension Contributions made subsequent to the Measurement Date $ -- $ -- $ -- Total Deferred Amounts Related to Pensions $ 3,284 $ -- $ 3,284

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Not including pension contributions made subsequent to the measurement date, amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense in future periods as follows:

Regular Plan

Year Ending December 31

Net Deferred Outflows of Resources

2016 $ 148,652 2017 142,011 2018 108,498 2019 103,181 2020 --

Thereafter -- Total $502,342

ECO Plan

Year Ending December 31

Net Deferred Outflows of Resources

2016 $ 852 2017 852 2018 852 2019 728 2020 --

Thereafter - Total $3,284

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C. Aggregate Pension Reporting

The following aggregate pension information is provided: Plan TRS IMRF Total Measurement Date 6/30/2015 12/31/2015 Pension Liability** $ -- $ 8,333,907 Pension Asset** -- $ 7,414,968 Net Pension Liability $ 2,086,992 $ 918,939 $ 3,005,931 Deferred outflows of resources related to pensions $ 851,048 $ 617,814 $ 1,468,862 Deferred inflows of resources related to pensions $ 75,367 $ 112,188 $ 187,555 Pension expense/expenditures for the period associated with net pension liabilities $ 363,721 $ 603,686 $ 967,407 **Only net pension liability provided by TRS

C. Social Security

Employees not qualifying for coverage under the Teachers' Retirement System of the State of Illinois 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. The Joint Agreement paid $273,489, the total required employer contribution for the current year.

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MID-STATE SPECIAL EDUCATION MORRISONVILLE, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2016 Note 5 – Post Employment Benefits Other Than Pensions

Employer Contributions to Teacher Health Insurance Security (THIS) Fund The Joint Agreement participates in the Teacher Health Insurance Security (THIS) Fund, a cost-sharing, multiple-employer defined benefit post-employment healthcare plan that was established by the Illinois legislature for the benefit of retired Illinois public school teachers employed outside the City of Chicago. The THIS Fund provides medical, prescription, and behavioral health benefits, but it does not provide vision, dental, or life insurance benefits to annuitants of the Teachers’ Retirement System (TRS). Annuitants not enrolled in Medicare may participate in the state-administered participating provider option plan or choose from several managed care options. Annuitants who are enrolled in Medicare Parts A and B may be eligible to enroll in a Medicare Advantage plan. The State Employees Group Insurance Act of 1971 (5 ILCS 375) outlines the benefit provisions of the THIS Fund and amendments to the plan can be made only be legislative action with the Governor’s approval. Effective July 1, 2012, in accordance with Executive Order 12-01, the plan is administered by the Illinois Department of Central Management Services (CMS) with the cooperation of TRS. Section 6.6 of the State Employees Group Insurance Act of 1971 requires all active contributors to TRS who are not employees of the state to make a contribution to the THIS Fund. The percentage of employer required contributions in the future will not exceed 105 percent of the percentage of salary actually required to be paid in the previous fiscal year.

•On Behalf Contributions to the THIS Fund The State of Illinois makes employer retiree health insurance contributions on behalf of the Joint Agreement. State contributions are intended to match contributions to the THIS Fund from active members which were 1.07 percent of pay during the year ended June 30, 2016. State of Illinois contributions were $91,429 and the Joint Agreement recognized receipts and expenditures of this amount during the year.

•Employer Contributions to the THIS Fund The Joint Agreement also makes contributions to the THIS Fund. The employer THIS Fund contribution was 0.80 percent during the year ended June 30, 2016. For the year ended June 30, 2016, the Joint Agreement paid $68,358 to the THIS Fund, which was 100 percent of the required contribution.

Further Information on the THIS Fund The publicly available financial report of the THIS Fund may be found on the website of the Illinois Auditor General: http://www.auditor.illinois.gov/Audit-Reports/ABC-List.asp. The current reports are listed under “Central Management Services.” Prior reports are available under “Healthcare and Family Services.

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http://www.auditor.illinois.gov/Audit-Reports/ABC-List.asp

MID-STATE SPECIAL EDUCATION MORRISONVILLE, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2016 Note 6 – Fund Balance Reporting

Government Accounting Standards Board Statement No. 54, “Fund Balance Reporting and Governmental Fund Type Definitions,” requires fund balances to be classified into five major classifications: Nonspendable Fund Balance; Restricted Fund Balance; Committed Fund Balance; Assigned Fund Balance; and Unassigned Fund Balance. However, the Regulatory Model, followed by the joint agreement, only reports Reserved and Unreserved Fund Balances. Below are definitions of the classifications and reconciliation between the presentations required by generally accepted accounting principles and the regulatory basis.

A. Nonspendable Fund Balance

The nonspendable fund balance classification includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. The “not in spendable form” criterion includes items that are not expected to be converted to cash, for example inventories, prepaid amounts and accounts required to be maintained intact.

B. Restricted Fund Balance

The restricted fund balance classification refers to amounts that are subject to outside restrictions, not controlled by the entity. Things such as restrictions imposed by creditors, grantors, contributors, or laws and regulations of other governments, or imposed by law through constitutional provisions or enabling legislation. 1. State Grants

Proceeds from state grants and the related expenditures have been included in the Educational, Fund in the joint agreement as a whole. At June 30, 2016 for the joint agreement as a whole, expenditures disbursed exceeded revenue received from state grants, resulting in no restricted balances.

2. Federal Grants

Proceeds from federal grants and the related expenditures have been included in the Educational Fund. At June 30, 2016 for the joint agreement as a whole, expenditures disbursed exceeded revenues received from federal grants, resulting in no restricted balances.

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C. Committed Fund Balance

The committed fund balance classification refers to amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the government’s highest level of decision making authority (the Executive Board). Those committed amounts cannot be used for any other purpose unless the government removes or changes the specified use by taking the same type of formal action it employed to previously commit those amounts.

The Executive Board commits fund balance by making motions or passing resolutions to adopt policy or to approve contracts. Committed fund balance also incorporates contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements.

1. Unpaid Employment Contracts

Employee contracts for services rendered during the school year for employees electing twelve month pay schedules are recorded as disbursements in the fiscal year when such checks are drawn. At June 30, 2016, the total amount of unpaid contracts for services performed for the joint agreement as a whole during the fiscal year ended June 30, 2016 was $1,462,226. This amount is shown as Unreserved in the Educational Fund.

D. Assigned Fund Balance

The assigned fund balance classification refers to amounts that are constrained by the government’s intent to be used for a specific purpose, but are neither restricted or committed. Intent may be expressed by (a) the Executive Board itself or (b) the finance committee or by the Superintendent when the Board of Education has delegated the authority to assign amounts to be used for specific purposes.

At June 30, 2016, no amounts were classified as assigned.

E. Unassigned Fund Balance

The unassigned fund balance classification is the residual classification for amounts in the General Operating Funds for amounts that have not been restricted, committed, or assigned to specific purposes within the individual funds. Unassigned Fund Balance amounts are shown in the financial statements as Unreserved Fund Balances in the Educational Fund.

F. Regulatory Basis Fund Balance Definitions

Reserved Fund Balances are those balances that are reserved for a specified purpose, other than the regular purpose of any given fund. Unreserved Fund Balances are all balances that are not reserved for a specific purpose other than the specified purpose of a fund.

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G. Reconciliation of Fund Balance Reporting

The first five columns of the following table represent Fund Balance Reporting according to generally accepted accounting principles. The last two columns represent Fund Balance Reporting under the regulatory basis of accounting utilized in the preparation of the financial statements.

Generally Accepted Accounting Principles Regulatory Basis Financial

Statement Presentation Fund Nonspendable Restricted Committed Assigned Unassigned Reserved Unreserved

Educational 0 0 1,462,226 0 407,813 0 1,870,039

H. Expenditures of Fund Balance

Unless specifically identified, expenditures act to reduce restricted balances first, then committed balances, next assigned balances, and finally act to reduce unassigned balances. Expenditures for a specifically identified purpose will act to reduce the specific classification of fund balance that is identified.

Note 7 - Required Individual Fund Disclosures

A. Overexpenditure of Budget

Expenditures disbursed did not exceed budgeted amounts at June 30, 2016.

B. Deficit Fund Balances

There was no deficit fund balance at June 30, 2016.

Note 8 - Risk Management

The Joint Agreement is exposed to various risks of loss including, but not limited to, general liability, property casualty, auto liability, workers’ compensation and public official liability. To limit exposure to these risks the Joint Agreement participates in a self-insurance pool.

The Joint Agreement is a member of the Prairie State Insurance Cooperative (PSIC), for workers compensation, property/casualty, and liability insurance. PSIC is a risk-sharing educational insurance cooperative in the State of Illinois, Each year, the Administrator of the Cooperative determines the amount of total payments from all of the Member Districts necessary to fund anticipated expenses of the Cooperative and this annual amount is allocated to the Member Districts. Member Districts can be assessed supplementary payments to the Cooperative if funds are insufficient to pay expenses of Administration of the Cooperative. Surplus funds may also be returned to Member Districts. Member Districts are required to comply with Cooperative Risk Management Protocols. Upon withdrawal or expulsion from the Cooperative, an accounting by PSIC will be performed and monies will either be paid by or returned to the Member District as merited.

25


There has not been a significant reduction in the Joint Agreement’s insurance coverage during the year ended June 30, 2016. Also, there have been no settlement amounts which have exceeded insurance coverage in the past three years.

Note 9 – Commitments and Contingencies

A. Grant Audits

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

B. Compensated Absences

Employees of the Joint Agreement are entitled to paid vacations depending on job classification, length of service and other factors. The computed amount of compensation for future absences at June 30, 2016 was not available.

C. Unpaid Employment Contracts At June 30, 2016, the Joint Agreement was obligated for $1,462,226 in unpaid employment contracts.

D, Open Line of Credit

At June 30, 2016, the Joint Agreement had $900,060 available on opens line of credit.

E. Copier Lease Agreement

On June 4, 2012, the Joint Agreement entered into a five year operating lease for copiers. The agreement required a minimum monthly payment of $1,317 for 60 months for a total lease cost of $79,020. The commitments by fiscal year are as follows: Fiscal Year Amount 2017 $ 15,804 2018 1,317 $ 17,121

26


F. Service Contract On May 23, 2014, the Joint Agreement entered into a 3-year service contract with Computer Techniques for the maintenance of the Joint Agreement’s networks, maintenance of the workstation computers, servers, technology consulting and technology purchasing advice. The monthly costs will be $3,996, $4,116, and $4,239 for the fiscal years 2015, 2016 and 2017, respectively. The commitments by fiscal year are as follows:

Fiscal Year Amount 2017 $ 50,868

Note 10 – Subsequent Events

Management evaluated subsequent events through October 19, 2016, the date which the financial statements were available to be issued and concluded that there were no events that met the criteria for disclosure.

27

Reference should be made to auditor's report regarding this information.

ECO Plan

Calendar Year Ended December 31,Total Pension Liability

Service Cost $ - $ - Interest on the Total Pension Liability 4,264 4,076 Changes of Benefit Terms - - Differences Between Expected and Actual Experience of the Total Pension Liability (10,480) (4,114) Changes of Assumptions - 2,553 Benefit Payments, including Refunds of Employee Contributions - -

Net Change in Total Pension Liability $ (6,216) $ 2,515 Total Pension Liability - Beginning 56,855 54,340 Total Pension Liability - Ending (A) $ 50,639 $ 56,855

Plan Fiduciary Net PositionContributions - Employer $ - $ - Contributions - Employees - - Net Investment Income 270 3,315 Benefit Payments, including Refunds of Employee Contributions - - Other (Net Transfer) (3,524) (3,754)

Net Change in Plan Fiduciary Net Position $ (3,254) $ (439) Plan Fiduciary Net Position - Beginning 53,901 54,340 Plan Fiduciary Net Position - Ending (B) $ 50,647 $ 53,901

Net Pension Liability (Asset) - Ending (A) - (B) $ (8) $ 2,954

100.02% 94.80%

Covered Valuation Payroll $ - $ -

0.00% 0.00%

Plan Fiduciary Net Position as a Percentage of the Total Pension Liability

Net Pension Liability as a Percentage of Covered Valuation Payroll

Notes to Schedule:

This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10-year trend is compiled, information is presented for those years for which information is available.

MID STATE SPECIAL EDUCATIONOTHER INFORMATION

IMRF SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOSFOR CALENDAR YEARS

2015 2014

MID-STATE SPECIAL EDUCATION OTHER INFORMATION

IMRF SCHEDULE OF EMPLOYER CONTRIBUTIONS MOST RECENT CALENDAR YEAR

Regular Plan

Calendar Year Ended December

31,

Actuarially Determined Contribution

Actual Contribution

Contribution Deficiency (Excess)

Covered Valuation

Payroll

Actual Contribution

as a Percentage of

Covered Valuation

Payroll

2014 $ 270,569 $ 270,569 $ -- $ 2,439,754 11.09%

2015 272,888 272,889 (1) 2,423,520 11.26% ECO Plan

Calendar Year Ended December

31,

Actuarially Determined Contribution

Actual Contribution

Contribution Deficiency (Excess)

Covered Valuation

Payroll

Actual Contribution

as a Percentage of

Covered Valuation

Payroll

2014 $ -- $ -- $ -- $ -- 0.00%

2015 -- -- -- -- 0.00% Notes to Schedule: Summary of Actuarial Methods and Assumptions Used in the Calculation of the 2015 Contribution Rate* Valuation Date: Notes Actuarially determined contribution rates are calculated as of

December 31 each year, which are 12 months prior to the beginning of the fiscal year in which contributions are reported.

Reference should be made to the auditor’s report regarding this information.


IMRF SCHEDULE OF EMPLOYER CONTRIBUTIONS MOST RECENT CALENDAR YEAR

Methods and Assumptions Used to Determine 2015 Contributions Rates: Actuarial Cost Method: Aggregate entry age = normal Amortization Method: Level percentage of payroll, closed Remaining Amortization Period: 28-year closed period Asset Valuation Method: 5-year smoothed market; 20% corridor Wage Growth: 4% Price Inflation: 3%, approximate; No explicit price inflation assumption is used

in this valuation Salary Increases: 4.40% to 16%. Including inflation Investment Rate of Return: 7.50% Retirement Age: Experience-based table of rates that are specific to the type of

eligibility condition; last updated for the 2011 valuation pursuant to an experience study of the period 2008 to 2010.

Mortality: RP-2000 Combined Healthy Mortality Table, adjusted for mortality improvements to 2020 using projection scale AA. For men, 120 percent of the table rates were used. For women, 92 percent of the table rates were used. For disabled lives, the mortality rates are the rates applicable to non-disabled lives set forward 10 years.

Other Information: Notes: There were no benefit changes during the year. *Based on Valuation Assumptions used in the December 31, 2013, actuarial valuation; note two year lag between valuation and rate setting. This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10-year trend is compiled, information is presented for those years for which information is available.

Reference should be made to the auditor’s report regarding this information.


SCHEDULE OF THE JOINT AGREEMENT’S PROPORTIONATE SHARE OF THE NET

PENSION LIABILITY TEACHERS’ RETIREMENT SYSTEM OF THE STATE OF ILLINOIS

FOR THE YEAR ENDED JUNE 30, 2016*

2015 2014 Joint Agreement’s Proportion of the Net Pension Liability 0.003186% 0.002322% Joint Agreement’s Proportionate Share of the Net Pension Liability $ 2,086,992 $ 1,413,250 State’s Proportionate Share of the Net Pension Liability Associated with the Employer 53,991,490 50,959,395 Total $56,078,482 $52,372,645 Joint Agreement’s Covered-Employee Payroll $ 8,338,206 $ 8,260,044 Joint Agreement’s Proportionate Share of the Net Pension Liability as a Percentage of its Covered-Employee Payroll 25.03% 17.10% Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 41.50% 43.00%

*The amounts presented were determined as of the prior fiscal-year end.

Notes to Other Information Changes of Assumptions Amounts reported in 2015 reflect an investment rate of return of 7.5 percent, an inflation rate of 3.0 percent and real return of 4.5 percent, and a salary increase that vary by service credit. In 2014, assumptions used were an investment rate of return of 7.5 percent, an inflation rate of 3.0 percent and real return of 4.5 percent, and salary increases of 5.75 percent.

Reference should be made to auditor’s report regarding this information.

MID-STATE SPECIAL EDUCATION

OTHER INFORMATION

SCHEDULE OF EMPLOYER CONTRIBUTIONS TEACHERS’ RETIREMENT SYSTEM OF THE STATE OF ILLINOIS

FOR THE YEAR ENDED JUNE 30, 2016

2015 2014 Contractually-Required Contributions $111,281 $ 155,422 Contributions in Relation to the Contractually-Required Contribution 111,281 155,422 Contribution Deficiency (Excess) $ -- $ -- Joint Agreement’s Covered-Employee Payroll $8,338,206 8,260,044 Contributions as a Percentage of Covered-Employee Payroll 1.14% 1.88%

Reference should be made to auditor’s report regarding this information.

Page 23

FEDERAL STIMULUS - AMERICAN RECOVERY AND REINVESTMENT ACT (ARRA) of 2009(Detailed Schedule of Receipts and Disbursements)

Page 23

Print Date: 03011801060. afr-16-form10/24/2016 Reference should be made to the auditor's report regarding this information.

12

3456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354

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, 2015 0ARRA - General State Aid 4850 0 0ARRA - Title I Low Income 4851 0 0ARRA - Title I Neglected - Private 4852 0 0ARRA - Title I Delinquent - Private 4853 0 0ARRA - 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 0 0ARRA - 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 0 0 0 0 0 0 0 0 0Ending Balance June 30, 2016 0

1. Were any funds from the State Fiscal Stabilization Fund Program (SFSF) General State-Aid Accounts 4850, line 5 & 4870, line 23used 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

Page 24 Page 24

Print Date: 10/24/201603011801060. afr-16-form Reference should be made to the auditor's report regarding this information.

1

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10111213141516171819202122

A B C D E F

SCHEDULE OF AD VALOREM TAX RECEIPTS

Taxes Received 7-1-15 Thru 6-30-16 (from 2014 Levy &

Prior Levies) *

Taxes Received (from the 2015 Levy)

Taxes Received (from 2014 & Prior

Levies)

Total Estimated Taxes (from the 2015 Levy)

Estimated Taxes Due (from the 2015 Levy)

(Column B - C) (Column E - C)Educational 0 0 0Operations & Maintenance 0 0 0Debt Services ** 0 0 0Transportation 0 0 0Municipal Retirement 0 0 0Capital Improvements 0 0 0Working Cash 0 0 0Tort Immunity 0 0 0Fire Prevention & Safety 0 0 0Leasing Levy 0 0 0Special Education 0 0 0Area Vocational Construction 0 0 0Social Security/Medicare Only 0 0 0Summer School 0 0 0Other (Describe & Itemize) 0 0 0

Totals 0 0 0 0 0

* 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).


Page 25 Page 25

Print Date: 10/24/2016 03011801060. afr-16-form Reference should be made to the auditor's report regarding this information.

1

2

345678910111213141516171819202122

232425262728

29

3031323334353637383940414243444546474849505152535455

A B C D E F G H I J

Outstanding Beginning 07/01/15

Issued 07/01/15 Through 06/30/16

Retired 07/01/15 Through 06/30/16

Outstanding Ending 06/30/16

0

Educational Fund 0Operations & Maintenance Fund 0Debt Services - Construction 0Debt Services - Working Cash 0Debt Services - Refunding Bonds 0Transportation Fund 0Municipal Retirement/Social Security Fund 0Fire Prevention & Safety Fund 0Other - (Describe & Itemize) 0

0 0 0 0

0000

0 0 0 0

0

0

0

Identification or Name of Issue Date of Issue (mm/dd/yy)

Amount of Original Issue Type of Issue * Outstanding

Beginning 07/1/15Issued 7/1/15 thru

6/30/16

Any differences described and

itemized

Retired 7/1/15 thru 6/30/16

Outstanding Ending 6/30/16

Amount to be Provided for

Payment on Long-Term Debt

000000000000000000

0 0 0 0 0 0 0

* 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

4. Fire Prevent, Safety, Environmental and Energy Bonds

Educational FundOperations & Maintenance FundFire Prevention & Safety FundOther - (Describe & Itemize)

Total TANsTEACHERS'/EMPLOYEES' ORDERS (T/EO)

Total T/EOs (Educational, Operations & Maintenance, & Transportation Funds)

SCHEDULE OF LONG-TERM DEBT

GENERAL STATE-AID ANTICIPATION CERTIFICATES (GSAAC)Total GSAACs (All Funds)

OTHER SHORT-TERM BORROWINGTotal Other Short-Term Borrowing (Describe & Itemize)

SCHEDULE OF SHORT-TERM DEBT

TAX ANTICIPATION NOTES (TAN)


Total CPPRT NotesTAX ANTICIPATION WARRANTS (TAW)

Total TAWs

CORPORATE PERSONAL PROPERTY REPLACEMENT TAX ANTICIPATION NOTES (CPPRT)

Page 26 Schedule of Restricted Local Tax Levies and Selected Revenues Sources Schedule of Tort Immunity Expenditures

Page 26

Print Date: 10/24/2016 03011801060. afr-16-form Reference should be made to the auditor's report regarding this information.

1

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101112131415161718

192021

222324252627

28293031323334353637383940

4142434445

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 50-1100Earnings on Investments 10, 20, 40, 50 or 60-1500Drivers' Education Fees 10-1970School Facility Occupation Tax Proceeds 30 or 60-1983Driver Education 10 or 20-3370

--10, 20, 40 or 60-7200

Total Receipts 0 0 0 0 0

10 or 50-100020 or 60-2530

10, 20, 40-2360-2370DEBT SERVICE

30-5200

30-5300

30-5400Total Debt Services 0

--

Total Disbursements 0 0 0 0 0Ending Cash Basis Fund Balance as of June 30, 2016 0 0 0 0 0Reserved Fund Balance 714Unreserved Fund Balance 730 0 0 0 0 0

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 the fiscal year 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

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 Other (Describe & Itemize on tab "Itemization 32")

Educational, Inspectional, Supervisory Services Related to Loss Prevention and/or Reduction


Cash Basis Fund Balance as of July 1, 2015RECEIPTS:

DISBURSEMENTS:

Debt Services - Interest on Long-Term Debt

Page 27 Page 27


1

23456789

101112131415161718

A B C D E F G H I J K L

Schedule of Capital Outlay and Depreciation

Description of Assets (Enter Whole Dollars)

Acct #

Cost Beginning

7/1/15

Add: Additions 2015-2016

Less: Deletions 2015-2016

Cost Ending 6/30/16

Life In Years

Accumulated Depreciation

Beginning 7/1/15

Add: Depreciation

Allowable 2015-2016

Less: Depreciation

Deletions 2015-2016

Accumulated Depreciation

Ending 6/30/16

Ending Balance Undepreciated

6/30/16

Works of Art & Historical Treasures 210 0 0 0Land 220

Non-Depreciable Land 221 0 0Depreciable Land 222 0 50 0 0

Buildings 230Permanent Buildings 231 455,343 455,343 50 57,303 9,107 66,410 388,933Temporary Buildings 232 0 20 0 0Improvements Other than Buildings (Infrastructure) 240 0 20 0 0

Capitalized Equipment 25010 Yr Schedule 251 543,364 16,845 17,347 542,862 10 381,083 42,818 17,347 406,554 136,3085 Yr Schedule 252 0 5 0 03 Yr Schedule 253 0 3 0 0

Construction in Progress 260 0 -- 0Total Capital Assets 200 998,707 16,845 17,347 998,205 438,386 51,925 17,347 472,964 525,241

Non-Capitalized Equipment 700 0 10 0Allowable Depreciation 51,925

Page 28 Page 28


12345678910111213141516171819202122232425262728293031323334353637383940414243444546474849505152535455565758596061626364656667686970717273747576777879

A B C D E F G

Fund Sheet, Row ACCOUNT NO - TITLE Amount

EXPENDITURES:ED Expenditures 15-22, L114 Total Expenditures $ 15,786,175O&M Expenditures 15-22, L150 Total Expenditures 0DS Expenditures 15-22, L168 Total Expenditures 0TR Expenditures 15-22, L204 Total Expenditures 0MR/SS Expenditures 15-22, L288 Total Expenditures 0TORT Expenditures 15-22, L331 Total Expenditures 0

Total Expenditures $ 15,786,175

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) $ 0TR 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, L7, Col K - (G+I) 1125 Pre-K Programs 0ED Expenditures 15-22, L9, Col K - (G+I) 1225 Special Education Programs Pre-K 515,091ED Expenditures 15-22, L11, Col K - (G+I) 1275 Remedial and Supplemental Programs Pre-K 0ED Expenditures 15-22, L12, Col K - (G+I) 1300 Adult/Continuing Education Programs 0ED Expenditures 15-22, L15, Col K - (G+I) 1600 Summer School Programs 18,692ED Expenditures 15-22, L20, Col K 1910 Pre-K Programs - Private Tuition 0ED Expenditures 15-22, L21, Col K 1911 Regular K-12 Programs - Private Tuition 0ED Expenditures 15-22, L22, Col K 1912 Special Education Programs K-12 - Private Tuition 0ED Expenditures 15-22, L23, Col K 1913 Special Education Programs Pre-K - Tuition 0ED Expenditures 15-22, L24, Col K 1914 Remedial/Supplemental Programs K-12 - Private Tuition 0ED Expenditures 15-22, L25, Col K 1915 Remedial/Supplemental Programs Pre-K - Private Tuition 0ED Expenditures 15-22, L26, Col K 1916 Adult/Continuing Education Programs - Private Tuition 0ED Expenditures 15-22, L27, Col K 1917 CTE Programs - Private Tuition 0ED Expenditures 15-22, L28, Col K 1918 Interscholastic Programs - Private Tuition 0ED Expenditures 15-22, L29, Col K 1919 Summer School Programs - Private Tuition 0ED Expenditures 15-22, L30, Col K 1920 Gifted Programs - Private Tuition 0ED Expenditures 15-22, L31, Col K 1921 Bilingual Programs - Private Tuition 0ED Expenditures 15-22, L32, Col K 1922 Truants Alternative/Optional Ed Progms - Private Tuition 0ED Expenditures 15-22, L75, Col K - (G+I) 3000 Community Services 0ED Expenditures 15-22, L102, Col K 4000 Total Payments to Other Govt Units 2,315,428ED Expenditures 15-22, L114, Col G - Capital Outlay 16,845ED Expenditures 15-22, L114, Col I - Non-Capitalized Equipment 0O&M Expenditures 15-22, L130, Col K - (G+I) 3000 Community Services 0O&M Expenditures 15-22, L138, Col K 4000 Total Payments to Other Govt Units 0O&M Expenditures 15-22, L150, Col G - Capital Outlay 0O&M Expenditures 15-22, L150, Col I - Non-Capitalized Equipment 0DS Expenditures 15-22, L154, Col K 4000 Payments to Other Dist & Govt Units 0DS Expenditures 15-22, L164, Col K 5300 Debt Service - Payments of Principal on Long-Term Debt 0TR Expenditures 15-22, L179, Col K - (G+I) 3000 Community Services 0TR Expenditures 15-22, L190, Col K 4000 Total Payments to Other Govt Units 0TR Expenditures 15-22, L200, Col K 5300 Debt Service - Payments of Principal on Long-Term Debt 0TR Expenditures 15-22, L204, Col G - Capital Outlay 0TR Expenditures 15-22, L204, Col I - Non-Capitalized Equipment 0MR/SS Expenditures 15-22, L210, Col K 1125 Pre-K Programs 0MR/SS Expenditures 15-22, L212, Col K 1225 Special Education Programs - Pre-K 0MR/SS Expenditures 15-22, L214, Col K 1275 Remedial and Supplemental Programs - Pre-K 0MR/SS Expenditures 15-22, L215, Col K 1300 Adult/Continuing Education Programs 0MR/SS Expenditures 15-22, L218, Col K 1600 Summer School Programs 0MR/SS Expenditures 15-22, L274, Col K 3000 Community Services 0MR/SS Expenditures 15-22, L278, Col K 4000 Total Payments to Other Govt Units 0

Total Deductions for OEPP Computation (Sum of Lines 18 - 73) $ 2,866,056Total Operating Expenses Regular K-12 (Line 14 minus Line 75) 12,920,119

9 Mo ADA from the General State Aid Claimable for 2015-2016 and Payable in 2016-2017 (ISBE 54-33), L12 0.00Estimated OEPP (Line 76 divided by Line 77) $ Complete Line 77

OPERATING EXPENSE PER PUPIL

ESTIMATED OPERATING EXPENSE PER PUPIL (OEPP)/PER CAPITA TUITION CHARGE (PCTC) COMPUTATIONS (2015-2016)This schedule is completed for school districts only.

Page 29 Page 29


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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 (2015-2016)This schedule is completed for school districts only.

8081828384858687888990919293949596979899100101102103104105106107108109110111112113114115116117118119120121122123124125126127128129130131132133134135160161162163164165166167168169170171172173174175176177178179180181182

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) 0TR 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 0ED-O&M Revenues 9-14, L82, Col C,D 1700 Total District/School Activity Income 0ED Revenues 9-14, L84, Col C 1811 Rentals - Regular Textbooks 0ED 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 0ED-O&M-TR Revenues 9-14, L98, Col C,D,F 1940 Services Provided Other Districts 458ED-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 (Describe & Itemize) 0ED-O&M-TR Revenues 9-14, L131, Col C,D,F 3100 Total Special Education 443,509ED-O&M-MR/SS Revenues 9-14, L140, Col C,D,G 3200 Total Career and Technical Education 0ED-MR/SS Revenues 9-14, L144, Col C,G 3300 Total Bilingual Ed 0ED Revenues 9-14, L145, Col C 3360 State Free Lunch & Breakfast 0ED-O&M-MR/SS Revenues 9-14, L146, Col C,D,G 3365 School Breakfast Initiative 0ED-O&M Revenues 9-14, L147,Col C,D 3370 Driver Education 0ED-O&M-TR-MR/SS Revenues 9-14, L154, Col C,D,F,G 3500 Total Transportation 0ED 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 0ED-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 0ED-O&M-DS-TR-MR/SS Revenues 9-14, L166, Col C,D,E,F,G 3780 Technology - Technology for Success 0ED-TR Revenues 9-14, L167, Col C,F 3815 State Charter Schools 0O&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 3,298ED 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 0ED-O&M-TR-MR/SS Revenues 9-14, L211, Col C,D,F,G - Total Title I 0ED-O&M-TR-MR/SS Revenues 9-14, L216, Col C,D,F,G - Total Title IV 0ED-O&M-TR-MR/SS Revenues 9-14, L220, Col C,D,F,G 4620 Fed - Spec Education - IDEA - Flow Through 2,649,502ED-O&M-TR-MR/SS Revenues 9-14, L221, Col C,D,F,G 4625 Fed - Spec Education - IDEA - Room & Board 0ED-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 0ED-O&M-DS-TR-MR/SS-Tort Revenue Adjustments (C231 thru J258) 4800 Total ARRA Program Adjustments 0ED Revenues 9-14, L260, Col C 4901 Race to the Top 0ED-O&M-DS-TR-MR/SS-Tort Revenues 9-14, L261, Col C-G,J 4902 Race to the Top-Preschool Expansion Grant 0ED,O&M,MR/SS Revenues 9-14, L262, Col C,D,G 4904 Advanced Placement Fee/International Baccalaureate 0ED-TR-MR/SS Revenues 9-14, L263, Col C,F,G 4905 Title III - Immigrant Education Program (IEP) 0ED-TR-MR/SS Revenues 9-14, L264, Col C,F,G 4909 Title III - Language Inst Program - Limited Eng (LIPLEP) 0ED-TR-MR/SS Revenues 9-14, L265, Col C,F,G 4910 Learn & Serve America 0ED-O&M-TR-MR/SS Revenues 9-14, L266, Col C,D,F,G 4920 McKinney Education for Homeless Children 0ED-O&M-TR-MR/SS Revenues 9-14, L267, Col C,D,F,G 4930 Title II - Eisenhower Professional Development Formula 0ED-O&M-TR-MR/SS Revenues 9-14, L268, Col C,D,F,G 4932 Title II - Teacher Quality 0ED-O&M-TR-MR/SS Revenues 9-14, L269, Col C,D,F,G 4960 Federal Charter Schools 0ED-O&M-TR-MR/SS Revenues 9-14, L270, Col C,D,F,G 4991 Medicaid Matching Funds - Administrative Outreach 122,248ED-O&M-TR-MR/SS Revenues 9-14, L271, Col C,D,F,G 4992 Medicaid Matching Funds - Fee-for-Service Program 6,837ED-O&M-TR-MR/SS Revenues 9-14, L272, Col C,D,F,G 4999 Other Restricted Revenue from Federal Sources (Describe & Itemize) 113,262

Total Deductions for PCTC Computation Line 83 through Line 173 $ 3,339,114Net Operating Expense for Tuition Computation (Line 76 minus Line 175) 9,581,005

Total Depreciation Allowance (from page 27, Col I) 51,925Total Allowance for PCTC Computation (Line 176 minus Line 177) 9,632,930

9 Month ADA (from the GSA Claimable for 2015-2016 Payable in 2016-2017 (ISBE form 54-33, Line 12)) 0.00Total Estimated PCTC (Line 178 divided by Line 179) * $ #DIV/0!

* The total OEPP/PCTC may change based on the data provided. The final amounts will be calculated by ISBE

PER CAPITA TUITION CHARGE

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ESTIMATED INDIRECT COST DATAPage 30


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A B C D E F G H

ESTIMATED INDIRECT COST RATE DATA

SECTION I Financial Data To Assist Indirect Cost Rate Determination (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)

Internal 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 Programs

Restricted Program Unrestricted ProgramFunction Indirect Costs Direct Costs Indirect Costs Direct Costs

Instruction 1000 8,844,046 8,844,046Support Services:

Pupil 2100 3,110,710 3,110,710Instructional Staff 2200 105,618 105,618General Admin. 2300 1,256,523 1,256,523School Admin 2400 0 0

Business:Direction of Business Spt. Srv. 2510 0 0 0 0Fiscal Services 2520 87,533 0 87,533 0Oper. & Maint. Plant Services 2540 20,337 20,337 0Pupil Transportation 2550 64 64Food Services 2560 0 0Internal Services 2570 2,907 0 2,907 0

Central:Direction of Central Spt. Srv. 2610 0 0Plan, Rsrch, Dvlp, Eval. Srv. 2620 0 0Information Services 2630 0 0Staff Services 2640 0 0 0 0Data Processing Services 2660 26,164 0 26,164 0

Other: 2900 0 0Community Services 3000 0 0

Total 116,604 13,337,298 136,941 13,316,961Unrestricted Rate

Total Indirect Costs: 116,604 Total Indirect costs: 136,941Total Direct Costs: 13,337,298 Total Direct Costs: 13,316,961

= 0.87% = 1.03%

ALL OBJECTS EXCLUDE CAPITAL OUTLAY. With the exception of line 11, 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 2016 (Include the value of commodities when determining if a Single Audit is required) .

COUNTDISTRICT NAME CODE DISTRICT NUMBER STREET

Reference should be made to the auditor's report regarding this information.Page 31

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REPORT ON SHARED SERVICES OR OUTSOURCINGSchool Code, Section 17-1.1 (Public Act 97-0357 )

Fiscal Year Ending June 30, 2016

Check if the schedule is not applicable. Prior Fiscal Year

Current Fiscal Year Next Fiscal Year Name of the Local Education Agency (LEA) Participating in the Joint

Agreement, Cooperative or Shared Service. #####Indicate with an (X) If Deficit Reduction Plan Is Required in the Budget

Service or Function ( Check all that apply ) Barriers to Implementation (Limit text to 200 characters, for additional space use line 33 and 38)

Curriculum Planning Custodial Services x x x Outsource: Steve Sheedy Educational Shared Programs Employee Benefits Energy Purchasing x x x Outsource: Direct Energy, Constellation Energy Food Services Grant Writing Grounds Maintenance Services x x x Outsource: Schmedeke Lawn Care; Garella Pest Services Insurance x x x Outsource: Prairie Stae Insurance Coop; Egyptian Trust Investment Pools Legal Services x x x Outsource: Tueth, Keeney, Cooper, Mohan & Jackstadt Maintenance Services Personnel Recruitment Professional Development Shared Personnel x x x Outsource: Therakids (OT, PT) Special Education Cooperatives STEM (science, technology, engineering and math) Program Offerings Supply & Equipment Purchasing Technology Services x x x Outsource: Computer Techniques, Inc Transportation Vocational Education Cooperatives All Other Joint/Cooperative Agreements Other x x x Outsource: Bushue Human Resources

Additional space for Column (D) - Barriers to Implementation:

Additional space for Column (E) - Name of LEA :

Complete the following for attempts to improve fiscal efficiency through shared services or outsourcing in the prior, current and next fiscal years.

10-011-8010-60

Other: Asbestos management outsource: Renden Professional Services; Auditing services outsource: Mose, Yockey, Brown & Kull

Mid-State Special Education

Page 32 Page 32

Reference should be made to the auditor's report regarding this information.

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 2016 Budgeted Expenditures, Fiscal Year 2017(10) (20) (10) (20)

Funct. No. Educational Fund Operations &

Maintenance Fund Total Educational Fund Operations & Maintenance Fund Total

1. Executive Administration Services 2320 1,273,368 1,273,368 02. Special Area Administration Services 2330 0 0 03. Other Support Services - School Administration 2490 0 0 04. Direction of Business Support Services 2510 0 0 0 05. Internal Services 2570 2,907 2,907 06. Direction of Central Support Services 2610 0 0 07. 0 0

8. Totals 1,276,275 0 1,276,275 0 0 0

9. Enter Budget Data

CERTIFICATIONI certify that the amounts shown above as "Actual Expenditures, Fiscal Year 2016" agree with the amounts on the district's Annual Financial Report for Fiscal Year 2016. I also certify that the amounts shown above as "Budgeted Expenditures, Fiscal Year 2017" agree with the amounts on the budget adopted by the Board of Education.

Signature of Superintendent

Contact Name

If line 9 is greater than 5% please check one box below.

The district will amend their budget to become in compliance with the limitation. Budget amendments must be adopted no later than June 30.

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 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 105 ILCS 5/2-3.25g. Waiver applications must be postmarked by August 12, 2016 to ensure inclusion in the Fall 2016 report, postmarked by January 13, 2017 to ensure inclusion in the Spring 2017 report, or postmarked by August 11, 2017 to ensure inclusion in the Fall 2017 report. Information on the waiver process can be found at www.isbe.net/isbewaivers/default.htm.

Mid-State Special Education(Section 17-1.5 of the School Code) 10-011-8010-60

Description

Deduct - Early Retirement or other pension obligations required by state law and included above.

Percent Increase (Decrease) for FY2017 (Budgeted) over FY2016 (Actual)

Date

Contact Telephone Number

Page 33 Page 33


This page is provided for detailed itemizations as requested within the body of the report.Type Below.

Pgae 5, Line 12 "Other Current Assets" Educational Fund Prepaid Payroll Withholding $7,353

Page 11, line 107, "Other Local Revenues" Educational Fund Testing $40 Refund $483 Miscellaneous $100

Page 12, Line 171, "Other Restricted Revenue from State Sources" Educational Fund Case Services Grants from Department of Human Resources $3,298

Page 14, Line 272, "Other Restricted Revenue from Federal Sources" Educational Fund Case Services Grants from Department of Human Resources $113,262

Mid-State Special Education10-011-8010-60

Page 34 Page 34

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 May require notification to the county clerk to abate an equal amount from taxes next extended. Refer to Section 17-2.11 for the applicable provisions and other "limited" transfer

authority to O&M through June 30, 20135 Requires notification to the county clerk to abate an equal amount from taxes next extended. See Section 10-22.14 6 Use of proceeds from the sale of school sites buildings, or other real estate is limited. See Sections 5-22 and 10-22.8 of the School Code.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).12 Only abolishment of Working Cash Fund must transfer its funds directly to the Educational Fund upon adoption of a resolution and at the close of the

current school Year (see 105 ILCS 5/20-8 for further explanation)Only abatement of working cash fund can transfer its funds to any fund in most need of money (see 105 ILCS 5/20-10 for further explanation)

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2

3

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11

12

13

A B C D E F G H

Description EDUCATIONAL FUND (10)

OPERATIONS & MAINTENANCE

FUND (20)

TRANSPORTATION FUND (40)

WORKING CASH FUND (70) TOTAL

Direct Revenues 16,304,555 16,304,555Direct Expenditures 15,786,175 15,786,175Difference 518,380 518,380Fund Balance - June 30, 2016 1,870,039 1,870,039

DEFICIT ANNUAL FINANCIAL REPORT (AFR) SUMMARY INFORMATION New Provisions in the School Code, Section 17-1 (105 ILCS 5/17-1)

Balanced - no deficit reduction plan is required.

Instructions: If the Annual Financial Report (AFR) reflects that a "deficit reduction plan" is required as calculated below, then the school district is to complete the "deficit reduction plan" in the annual budget and submit the plan to Illinois State Board of Education (ISBE) within 30 days after accepting the audit report. This may require the FY2017 annual budget to be amended to include a "deficit reduction plan" and narrative.

The "deficit reduction plan" is developed using ISBE guidelines and format in the School District Budget Form 50-36. A plan is required when the operating funds listed below result in direct revenues (line 7) being less than direct expenditures (line 8) by an amount equal to or greater than one-third (1/3) of the ending fund balance (line 10). That is, if the ending fund balance is less than three times the deficit spending, the district must adopt and submit an original budget/amended budget with ISBE that provides a "deficit reduction plan" to balance the shortfall within the next three years.

DEFICIT AFR SUMMARY INFORMATION - Operating Funds Only (All AFR pages must be completed to generate the following calculation)

Page 37 Page 37

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 IL 62565

E-MAIL ADDRESS:NAME OF AUDIT SUPERVISOR

Robin R. YockeyIL 62546-0046

CPA FIRM TELEPHONE NUMBER FAX NUMBER

THE FOLLOWING INFORMATION MUST BE INCLUDED IN THE SINGLE AUDIT REPORT:

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). Financial Statements including footnotes Title 2 CFR §200.510 (a)

Schedule of Expenditures of Federal Awards including footnotes Title 2 CFR §200.510 (b)

Independent Auditor's Report Title 2 CFR §200.515 (a)

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 Title 2 CFR §200.515 (b)

Independent Auditor's Report on Compliance with Requirements Applicable to each Major Program and Internal Control over Compliance Title 2 CFR §200.515 (c )

Schedule of Findings and Questioned Costs Title 2 CFR §200.515 (d) (1) - (3)

Summary Schedule of Prior Year Audit Findings Title 2 CFR §200.511 (b)

Corrective Action Plan Title 2 CFR §200.511 (c)

THE FOLLOWING INFORMATION IS HIGHLY RECOMMENDED TO BE INCLUDED:

Copy of Federal Data Collection Form Title 2 CFR §200.512 (b)

Copy(ies) of Management Letter(s)

202 Prairie, PO Box 46

217-774-9587 217-774-9589

Morrisonville

230 N. Morgan, PO Box 317

(Street and/or P.O. Box, City, State, Zip Code)Shelbyville

Year Ending June 30, 2016

Mid-State Special Education 10-011-8010-60 066-003845


INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL

PROGRAM AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY UNIFORM GUIDANCE

To the Executive Committee Mid-State Special Education Morrisonville, Illinois Report on Compliance for Each Major Federal Program We have audited Mid-State Special Education’s compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of Mid-State Special Education’s major federal programs for the year ended June 30, 2016. Mid-State Special Education’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. Management’s Responsibility Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. Auditor’s Responsibility Our responsibility is to express an opinion on compliance for each of Mid-State Special Education’s major federal programs based on our audit of the types of compliance requirements referred to above. 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 the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Uniform Guidance).. Those standards and the Uniform Guidance 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 Mid-State Special Education’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 on compliance for each major federal program. However, our audit does not provide a legal determination of Mid-State Special Education’s compliance. Opinion on Each Major Federal Program In our opinion, Mid-State Special Education complied, in all material respects, with the types of 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, 2016.

Report on Internal Control Over Compliance Management of Mid-State Special Education is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered Mid-State Special Education’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, 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 Mid-State Special Education’s internal control over compliance. 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. 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. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

Mose, Yockey, Brown & Kull, LLC Certified Public Accountants Shelbyville, Illinois October 19, 2016

Page 39 Page 39

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 3,032,582$ Flow-through Federal Revenues Revenues 9-14, Line 112 Account 2200 863,697 Value of Commodities Indirect Cost Info 30, Line 11 -

Less: Medicaid Fee-for-Service Revenues 9-14, Line 271 Account 4992 (6,837)

AFR TOTAL FEDERAL REVENUES: 3,889,442$

ADJUSTMENTS TO AFR FEDERAL REVENUE AMOUNTS:

Reason for Adjustment:

ADJUSTED AFR FEDERAL REVENUES 3,889,442$

Total Current Year Federal Revenues Reported on SEFA: Federal Revenues Column D 3,889,442$

Adjustments to SEFA Federal Revenues:

Reason for Adjustment:

ADJUSTED SEFA FEDERAL REVENUE: 3,889,442$

DIFFERENCE: -$


Page 40 Page 40


ISBE Project # Receipts/Revenues Expenditure/Disbursements4

Federal Grantor/Pass-Through Grantor/Subrecipients * CFDA (1st 8 digits) Year Year Year Year Obligations/ Final BudgetProgram or Cluster Title and Number2 or Contract #3 7/1/14-6/30/15 7/1/15-6/30/16 7/1/14-6/30/15 7/1/15-6/30/16 Encumb. StatusMajor Program Designation (A) (B) (C) (D) (E) (F) (G) (H) (I)

U.S. Department of Education

Special Education Cluster

Passed through Illinois State Board of Education

(M) Federal - Special Education - IDEA Pre-School provided to subrecipients 84.173A 2015-4600 5,764 5,764 5,764 5,773

(M) Federal - Special Education - IDEA Pre-School 84.173A 2015-4600 136,676 24,154 155,208 6,330 161,538 162,541

(M) Federal - Special Education - IDEA Pre-School provided to subrecipients 84.173A 2016-4600 5,303 5,303 5,303 7,992

(M) Federal - Special Education - IDEA Pre-School 84.173A 2016-4600 116,579 121,721 18,212 139,933 183,802

Total Federal - Special Education - IDEA Pre-School 142,440 146,036 160,972 133,354 18,212 312,538

Passed through Illinois State Board of Education

(M) Federal - Special Education - IDEA Flow Through provided to subrecipients 84.027A 2015-4620 753,096 81,351 753,096 81,351 834,447 834,447

(M) Federal - Special Education - IDEA Flow Through 84.027A 2015-4620 2,448,022 350,782 2,582,270 227,557 2,809,827 2,959,211 (M) Federal - Special Education - IDEA Flow Through provided to subrecipients 84.027A 2016-4620 777,042 777,042 777,042 803,276

(M) Federal - Special Education - IDEA Flow Through 84.027A 2016-4620 2,298,721 2,491,868 230,976 2,722,844 2,926,222

Total Federal - Special Education - IDEA Flow Through 3,201,118 3,507,896 3,335,366 3,577,818 230,976 7,144,160

Total Special Education Cluster 3,343,558 3,653,932 3,496,338 3,711,172 249,188 7,456,698

• (M) Program was audited as a major program as defined by §200.518.

* NEW - Also include the total amount provided to subrecipients from each Federal program. §200.510 (b)(4).

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 name of the pass-through entity and identifying number assigned by the pass-through entity must be included in the schedule. §200.510 (b)(2) 4 The Uniform Guidance 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, the Uniform Guidance 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.


SCHEDULE OF EXPENDITURES OF FEDERAL AWARDSYear Ending June 30, 2016

Page 40 Page 40


ISBE Project # Receipts/Revenues Expenditure/Disbursements4

Federal Grantor/Pass-Through Grantor/Subrecipients * CFDA (1st 8 digits) Year Year Year Year Obligations/ Final BudgetProgram or Cluster Title and Number2 or Contract #3 7/1/14-6/30/15 7/1/15-6/30/16 7/1/14-6/30/15 7/1/15-6/30/16 Encumb. StatusMajor Program Designation (A) (B) (C) (D) (E) (F) (G) (H) (I)

Passed through Illinois Department of Human Services

Secondary Transitional Experience Program - VR Grants 84.126 2015-4850 89,592 89,592 89,592 89,592

Secondary Transitional Experience Program - VR Grants 84.126 2016-4850 113,262 119,456 119,456 119,456

Total Secondary Transitional Experience Program - VR Grants 89,592 113,262 89,592 119,456 0 209,048

Total U.S. Department of Education 3,433,150 3,767,194 3,585,930 3,830,628 249,188 7,665,746

U.S. Department of Health and Human Services

Passed through Illinois Department of Health and Human Services

Medicaid Matching Administrative Outreach 93.778 2015-4991 95,093 31,559 126,652 126,652 N/A

Medicaid Matching Administrative Outreach 93.778 2016-4991 90,689 118,450 118,450 N/A

Total U.S. Department of Health and Human Services 95,093 122,248 126,652 118,450 0 245,102

Total Federal Financial Assistance 3,528,243 3,889,442 3,712,582 3,949,078 249,188 7,910,848

• (M) Program was audited as a major program as defined by §200.518.

* NEW - Also include the total amount provided to subrecipients from each Federal program. §200.510 (b)(4).

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 name of the pass-through entity and identifying number assigned by the pass-through entity must be included in the schedule. §200.510 (b)(2) 4 The Uniform Guidance 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, the Uniform Guidance 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.


SCHEDULE OF EXPENDITURES OF FEDERAL AWARDSYear Ending June 30, 2016

Page 41 Page 41

Note 1: Basis of Presentation5

Note 2: Indirect Facilities & Administration costs6

Auditee elected to use 10% de minimis cost rate? YES X NO

Note 3: Subrecipients7

Federal Amount Provided toProgram Title/Subrecipient Name CFDA Number Subrecipients

Special Education - Pre-School Flow Through FY16 84.173A

Litchfield Community Unit School District 12

Pana Community Unit School District 8

Taylorville Community Unit School District 3

Special Education - Federal IDEA Flow Through FY15 84.027A

Bond County Community Unit School District 2

Mulberry Grove Communit Unit School District 1

Special Education - Federal IDEA Flow Through FY16 84.027A

Bond County Community Unit School District 2

Brownstown Community Unit School District 201

Litchfield Community Unit School District 12

Mulberry Community Unit School District 1

Nokomis Community Unit School District 22

Pana Community Unit School District 8

Ramsey Community Unit School District 204

St. Elmo Community Unit School District 202

Taylorville Community Unit School District 3

Vandalia Communit Unit School District 203

Note 4: Non-Cash Assistance

NON-CASH COMMODITIES (CFDA 10.555)**: None

1,165

1,424

2,714

5,303

71,772

9,579

81,351

268,025

47,597

777,042

The following amounts were expended in the form of non-cash assistance by Mid-State Special Education and are included in the Schedule of Expenditures of Federal Awards:


NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (SEFA)Year Ending June 30, 2016

The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Mid-State Special Education and is presented on the modified cash basis of accounting. The information in this schedule is presented in accordance with the requirements of the Office of Management and Budget Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.

Of the federal expenditures presented in the schedule, Mid-State Special Education provided federal awards to subrecipients as follows:

12,873

47,922

9,909

8,922

66,616

64,909

33,742

216,527

Page 41 Page 41

OTHER NON-CASH ASSISTANCE NoneNote 5: Other InformationInsurance coverage in effect paid with Federal funds during the fiscal year:

Property NoneAuto NoneGeneral Liability NoneWorkers Compensation None

Loans/Loan Guarantees Outstanding at June 30: NoneDistrict had Federal grants requiring matching expenditures No

(Yes/No)

** The amount reported here should match the value reported for non-cash Commodities on the Indirect Cost Rate Computation page.5

6

7 The Uniform Guidance 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 subrecipient information in the notes to the schedule, the information may be included on the face of the schedule as a separate column or section, if that is preferred by the auditee. §200.510 (b)(2)

This note is included to meet the Uniform Guidance requirement that the schedule include notes that describe the significant accounting policies used in preparing the schedule.

The Uniform Guidance requires the Schedule of Expenditures of Federal Awards to note whether or not the auditee elected to use the 10% de minimis cost rate as covered in §200.414 Indirect (F&A) costs. §200.510 (b)(6)

Page 42 Page 42

FINANCIAL STATEMENTSType of auditor's report issued:

(Unmodified, Qualified, Adverse, Disclaimer)

INTERNAL CONTROL OVER FINANCIAL REPORTING:• Material weakness(es) identified? YES X None Reported

• Significant Deficiency(s) identified that are not considered to YES X None Reported be material weakness(es)?

• Noncompliance noted? YES X NO

FEDERAL AWARDSINTERNAL CONTROL OVER MAJOR PROGRAMS:• Material weakness(es) identified? YES X None Reported

• Significant Deficiency(s) identified that are not considered to YES X None Reported be material weakness(es)?

Type of auditor's report issued on compliance for major programs:(Unmodified, Qualified, Adverse, Disclaimer7)

Any audit findings disclosed that are required to be reported in accordance with §200.516 (a)? YES X NO

IDENTIFICATION OF MAJOR PROGRAMS:8

CFDA NUMBER(S)9 NAME OF FEDERAL PROGRAM or CLUSTER10

84.173A

84.027A

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 unmodified, indicate the type of report issued for each program. Example: "Unmodified for all major programs except for [name of program], which was modified 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.

$750,000

Unmodified

Special Education Cluster

Federal - Special Education - Pre-School

Federal - Special Educaiton - IDEA Flow Through

Adverse


SCHEDULE OF FINDINGS AND QUESTIONED COSTSYear Ending June 30, 2016

SECTION I - SUMMARY OF AUDITOR'S RESULTS

Page 43 Page 43

1. FINDING NUMBER:11 2016- 2. THIS FINDING IS: New Repeat from Prior Year?Year originally reported?

3. Criteria or specific requirement

4. Condition

5. Context12

6. Effect

7. Cause

8. Recommendation

9. Management's response13

For ISBE ReviewDate: Resolution Criteria Code NumberInitials: Disposition of Questioned Costs Code Letter

11 A suggested format for assigning reference numbers is to use the digits of the fiscal year being audited followed by a numeric sequence of findings. For example, findings identified and reported in the audit of fiscal year 2016 would be assigned a reference number of 2016-001, 2016-002, etc. The sheet is formatted so that only the number need be entered (1, 2, etc.).12 Provide sufficient information for judging the prevalence and consequences of the finding, such as relation to universe of costs and/or number of items examined and quantification of audit findings in dollars.13 See §200.521 Management decision for additional guidance on reporting management's response.



SECTION II - FINANCIAL STATEMENT FINDINGS

Our tests revealed no internal control over financial reporting or noncompliance findings.

Page 44 Page 44

1. FINDING NUMBER:14 2016- 2. THIS FINDING IS: 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

15. Management's response18

For ISBE ReviewDate: Resolution Criteria Code NumberInitials: Disposition of Questioned Costs Code Letter

14 See footnote 11.15 Include facts that support the deficiency identified on the audit finding.16 Identify questioned costs as required by §200.516 (a)(3 - 4).17 See footnote 12.18 To the extent practical, indicate when management does not agree with the finding, questioned cost, or both.

Our test revealed no noncompliance or internal control over compliance findings and no questioned costs.



SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

Page 45 Page 45

[If there are no prior year audit findings, please submit schedule and indicate NONE]

Finding Number Condition Current Status20

This schedule is not applicable because the Joint Agreement had no prior year findings related to federal awards.

When possible, all prior findings should be on the same page19 Explanation of this schedule - §200.511 (b)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


Page 46 Page 46

Corrective Action Plan Finding No.: 2016-

Condition:

Plan:

Anticipated Date of Completion:

Name of Contact Person: [Name and Title of person responsible for implementation]

Management Response: [If applicable, an explanation giving specific reasons if the district officials do not agree with the finding and believe that corrective action is unnecessary.]

21 Explanation of this schedule - §200.511 ( c)


CORRECTIVE ACTION PLAN FOR CURRENT YEAR AUDIT FINDINGS21


This schedule is not applicable because the Joint Agreement had no current year audit findings.

Documents

ISBE 2015-16 Annual Financial Report District/IL Mid-State Special... · morrisonville, illinois . annual financial report . as of and for the year ended june 30, 2016. mose, yockey,