Comprehensive Annual Financial Report 2014

152 Pages·2014·3.36 MB·English

TOWNSHIP HIGH SCHOOL
D 214
ISTRICT
Arlington Heights, IL

A Comprehensive Annual
Financial Report

As Of And For The Year
Ended June 30, 2014
T OWNSHIP HIGH SCHOOL
DISTRICT 214
Arlington Heights, IL

A Comprehensive Annual
Financial Report

As Of And For the Year Ended June 30, 2014
Officials Issuing Report

Cathy Johnson
Associate Superintendent for Finance & Operations

Sherry Koerner
Director of Business Services

Business Office of Township High School District 214
TOWNSHIP HIGH SCHOOL DISTRICT 214
TABLE OF CONTENTS
AS OF AND FOR THE YEAR ENDEDJUNE 30, 2014
Page(s)
Introductory Section
Transmittal Letter i - xx
ASBO Certificate xxi
Organizational Chart xxii
Principal Officers and Advisors xxiii
Building Information xxiv
Financial Section
Independent Auditors' Report 1 - 3
Required Supplementary Information
Management's Discussion and Analysis (MD&A) - Unaudited 4 - 12
Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Position 13
Statement of Activities 14
Fund Financial Statements
Balance Sheet - Governmental Funds 15 - 16
Reconciliation of the Governmental Funds -
Balance Sheet to the Statement of Net Position 17
Statement of Revenues, Expenditures and
Changes in Fund Balances - Governmental Funds 18 - 19
Reconciliation of the Governmental Funds - Statement
of Revenues, Expenditures and Changes in Fund
Balances to the Statement of Activities 20
Statement of Fiduciary Assets and Liabilities - Agency Fund 21
Notes to Basic Financial Statements 22 - 43
Required Supplementary Information
Illinois Municipal Retirement Fund -
Schedule of Employer's Contributions and
Analysis of Funding Progress 44
Schedule of Funding Progress ForHealth Benefit Plan 45
General and Major Special Revenue Funds - Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget to Actual
General Fund - Non-GAAP Budgetary Basis 46 - 56
Operations and Maintenance Fund 57 - 58
Transportation Fund 59
Municipal Retirement/Social Security Fund 60 - 61
TOWNSHIP HIGH SCHOOL DISTRICT 214
TABLE OF CONTENTS
AS OF AND FOR THE YEAR ENDEDJUNE 30, 2014
Page(s)
Required Supplementary Information - (Continued)
Notes to Required Supplementary Information 62
Supplementary Information
Major Debt Service and Major Capital Projects Funds - Schedule of Revenues,
Expenditures and Changes in Fund Balances - Budget to Actual
Debt Service Fund 63 - 64
Capital Projects Fund 65
Fire Prevention and Life Safety Fund 66
General Fund - Combining Balance Sheet 67 - 68
General Fund - Combining Schedule of Revenues, Expenditures and Changes in Fund
Balances 69 - 70
General Fund Accounts - Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget to Actual
Educational Accounts - Non-GAAP Budgetary
Basis 71 - 80
Tort Immunity and Judgment Accounts 81
Working Cash Accounts 82
Schedule of Changes in Assets and Liabilities - Agency Fund 83
Schedule of Bonds Outstanding - May 10, 2007 Issue 84
Schedule of Bonds Outstanding - July 30, 2008 Issue 85
Schedule of Debt Certificates Outstanding - December 8, 2009A Series Issue 86
Schedule of Debt Certificates Outstanding - December 8, 2009B Series Issue 87
Schedule of Bonds Outstanding - March 3, 2010 Issue 88
Schedule of Bonds Outstanding - December 1, 2011 Series Issue 89
Schedule of Bonds Outstanding - February 9, 2012 Series Issue 90
Statistical Section
Net Position by Component 91 - 92
Changes in Net Position 93 - 94
Fund Balances of Governmental Funds 95 - 96
Governmental Funds Revenues 97 - 98
Governmental Funds Expenditures and Debt Service Ratio 99 - 100
Other Financing Sources and Uses and Net Change in Fund Balances 101 - 102
Assessed Valuation and Estimated Actual Value of Taxable Property 103 - 104
Property Tax Rates - All Direct and Overlapping Governments 105 - 106
TOWNSHIP HIGH SCHOOL DISTRICT 214
TABLE OF CONTENTS
AS OF AND FOR THE YEAR ENDEDJUNE 30, 2014
Page(s)
Statistical Section - (Continued)
Principal Property Taxpayers in the District 107
Property Tax Levies and Collections 108
Ratio of Outstanding Debt by Type 109 - 110
Computation of Direct and Overlapping Debt 111
Legal Debt Margin Information 112 - 113
Demographic and Economic Statistics 114
Principal Employers 115
Number of Employees by Type 116 - 117
Operating Indicators by Function 118 - 119
School Building Information 120 - 121
Miscellaneous Statistics 122
T H S D 214
OWNSHIP IGH CHOOL ISTRICT

RECOGNIZED FOR EXCELLENCE BY THE UNITED STATES DEPARTMENT OF EDUCATION

Forest View Educational Center

2121 S. Goebbert Road
Arlington Heights, Illinois 60005
Telephone [phone]
Fax [phone]

Dr. David R. Schuler

Superintendent

September 23, 2014

Community Members and Board of Education
Township High School District 214
Arlington Heights IL 60005

The Comprehensive Annual Financial Report (CAFR) of Township High School District
214, Cook County, Illinois, as of and for the year ended June 30, 2014, is submitted
herewith. Responsibility for the accuracy, completeness, and fairness of the presentation,
including all disclosures, rests with the District. We believe the data, as presented, is
accurate in all material aspects and represents the financial position and results of
operations of the District as shown by the disclosure of all financial activity of its various
funds; and that all disclosures necessary for public understanding of the District’s
financial status have been incorporated within this report.

Management’s Discussion and Analysis (MD&A) immediately follows the independent
auditor’s report and provides a narrative introduction, overview, and analysis of the basic
financial statements. MD&A complements this letter for transmittal and should be read in
conjunction with it.

The CAFR includes all funds of the District and is presented in three sections:
introductory, financial, and statistical. The introductory section includes this transmittal
letter, the District’s organization chart, and a list of principal officers and elected officials.
The financial section includes the independent auditor’s report on financial statements
and schedules, MD&A, basic financial statements, and required supplemental information
such as the individual fund financial statements and schedules. The statistical section
includes selected financial and demographic information, generally presented on a
multi-year basis.

- i -
Mission and Vision
Our primary mission is to help all students learn the skills, acquire the knowledge, and
develop the behaviors necessary for them to reach their full potential as citizens who can
meet the challenges of a changing society. Our secondary mission is to provide residents
with opportunities for lifelong learning. The District 214 vision embraces continuous
improvement and includes:
Students who demonstrate...
• analytic capabilities
• communication skills including reading, writing, speaking, listening, and numeracy
• creative expression and educated response to the creative works of others
• ethical judgment and decision-making ability
• career and life planning skills
• responsible citizenship
• understanding of ways to participate in an interdependent world
• problem solving skills
• concern, understanding, and respect in social interactions
• technology literacy
• ability to develop and maintain wellness

An environment in which people are...
• physically, psychologically, and emotionally safe
• treated fairly and ethically
• valued for their unique backgrounds and contributions

Staff members who...
• are active, lifelong learners committed to continuing professional and personal
development
• are leaders in instructional practices
• create school work which engages and challenges students
• are innovative, take risks, and share what is learned from successes and failures
• are concerned, caring, and compassionate
• cooperate as partners with parents and the community in the education of students
• use student learning data to inform instructional decisions and practices

A Board of Education that...
• provides high quality resources for students and staff
• respects successful programs and practices
• encourages continual improvement through risk-taking and innovation
• cooperates and communicates as a partner with parents and the community in the
education of students
• celebrates student and staff success
• promotes lifelong learning
• involves school and community members in decision-making processes
- ii -
District Organization and History
Township High School District 214’s creation in 1914 can, in part, be attributed to the
Women’s Suffrage Movement. As the creation of the District was a hotly contested election
issue, men’s ballots opposed the proposition while women’s ballots supported the
proposition. With the subsequent validation of the Women’s Suffrage Act came the
creation of Township High School District 214.

Township High School District 214 is recognized as a Blue Ribbon High School District by
the United States Department of Education. Located approximately 25 miles northwest of
Chicago in a 68.3 square mile area, we are the state’s second largest high school district
serving students from Arlington Heights, Buffalo Grove, Des Plaines, Elk Grove, Mount
Prospect, Prospect Heights, Rolling Meadows, and Wheeling. The District is larger in area
than the city of St. Louis, and serves approximately 250,000 residents. Over 54 languages
are spoken in the homes of our students. Student enrollment, based on the fall housing
report for 2013-2014 was 12,025.

Township High School District 214 currently has seven campuses. The six comprehensive
high schools include: Buffalo Grove, Elk Grove, John Hersey, Prospect, Rolling Meadows,
and Wheeling. Forest View Educational Center houses: The Forest View Alternative
School, Vanguard School, Newcomer Center, Community Education, and the District 214
administration offices.

Transforming a great school district into an elite learning organization for all is the
primary focus of Township High School District 214. Working collaboratively in the spirit
of “WE”, all staff, administration, and Board of Education have committed to the systemic
student-centered focus of continuous, rigorous academic excellence for all students. As a
“lighthouse district”, Township High School District continues to serve as an accessible
resource for other learning organizations to model.

Township High School District 214’s primary mission is to help all students learn the
skills, acquire the knowledge, and develop the behaviors necessary for them to reach their
full potential as citizens who can meet the challenges of a changing society. Our secondary
mission is to provide residents with opportunities for lifelong learning.

Township High School District 214 students matriculate from several elementary districts
including: District 21, District 23, District 25, District 26, and District 57. District 214 is a
member of Northwest Suburban Special Education Organization (NSSEO) which provides
specific special needs services to our qualifying students.

Township High School District 214 has a complete academic program with more than 600
courses, as well as many programs and services for students with special needs. The
District also has a comprehensive extra-curricular offering including drama, service clubs,
special interest clubs, music groups, and a full slate of athletic offerings available to the
students.

- iii -
Township High School District is an award-winning District. The District has received
many awards, including:
• Association of School Business Officials (ASBO) Certificate of Excellence in
Financial Reporting for fiscal years 2009, 2010, 2011, 2012, and 2013.
• ASBO Meritorious Budget Award (MBA) for fiscal year 2011, 2012, 2013, and
2014. The MBA recognizes excellence in school budget presentation and is
conferred on school districts that have met or exceeded strict guidelines.
• Illinois State Board of Education (ISBE) Certificate of Financial Recognition,
with a 4.0 score for 2010, 2011, 2012, and 2013 fiscal year financial data.
• Lincoln Foundation Award for Performance Excellence in December 2010
• Advanced Placement (AP) Award of the Year.
• SchoolSearch Bright Red Apple Award for academic excellence in education.
District 214 is one of only 59 Illinois school districts (out of 868) chosen for
this honor. This is the eighth year that District 214 has received this award.
• National School Board Association 2010 Technology Trailblazer Award.
• Digital School District Award top ten ranking.
• Honorable Mention Recipient in the Magna Awards 2013 recognition
program for the Technology Innovation that Works program.
• Instructional Technology Innovation that Works was selected as an Apple
Distinguished Program for 2012 – 2013.

All six District 214 high schools were named among the top 35 in the state on the U. S.
News & World Report “Best High School List”, and all six were named among the nation’s
“Most Challenging High Schools” by The Washington Post.

The District finalized a $15.2 million grant from the Federal Aviation Administration
(FAA) for Elk Grove High School renovations to mitigate sound levels for an improved
student learning environment. The outside windows, roofing, ceiling tile, and unit
ventilators with sound baffles have reduced the noise level significantly. The project
included improvements in every academic area, including 71 classrooms, the cafeteria,
and gymnasium. The entire electrical system was upgraded, 177 new pieces of mechanical
equipment, and over 4 miles of pipe were installed. An additional benefit resulting from
the sound insulation and remodeling project is the enormous gain in energy efficiency.

Five intergovernmental field turf partnerships have been formed with The District.
• John Hersey High School and Arlington Heights Park District
• Wheeling High School and Wheeling Park District
• Buffalo Grove High School with Buffalo Grove Park District
• Prospect High School and Mount Prospect Park District
• Rolling Meadows High School and Elite Soccer of America
• Forest View Education Center and Robert Morris University and St. Viator
The partnerships will benefit the communities by expanding opportunities while saving
dollars. It is a win-win arrangement for the park districts, the school district, and our
entire community.
- iv -
The District is in a financial position enabling us to consider capital projects without
asking the community for additional revenues. A capital project feasibility process has
been initiated to comprehensively assess the academic, athletic, fine and performing arts,
and operational needs of the district. The capital feasibility process provides a unique
opportunity to consider enhancements to the infrastructure of our schools – many of
which are on average more than 45 years old – with valued input from students, staff, and
community.

District 214 Board of Education Goals

1. Provide quality education that is relevant to membership in a global society and
economy while maintaining a balanced operating budget and serving the student
population.

2. Increase student learning through engagement and innovative programs to ensure
students will develop self-awareness, self-management, interpersonal, and
decision-making skills as measured by social and emotional learning growth
objectives to establish and maintain positive relationships and achieve school and
life success in a global society and economy.

3. Promote and expand life-long learning opportunities for residents of all ages
through positive relationships, community involvement, community engagement
and outreach, and collaborative planning in the efficient use of resources.

District 214 Instructional Goals

1. Each No Child Left Behind (NCLB) sub-group's average Educational Planning and
Assessment System (EPAS) growth will surpass that of the previous cohort by 10%
annually in reading, English, math, and science until growth from EXPLORE to
ACT exceeds six points.

2. Increase student success rate (as measured by a grade of A, B, or C) per course by at
least five percentile points each year until the threshold of 95% is attained.

3. The number of students enrolled in at least one AP course will increase over the
previous year, as will the number of students taking at least one AP exam and the
number of students earning a passing score on an AP exam, until at least 50% of all
students have earned a score of three or higher on an AP final.

In concert with the three instructional goals listed above, each school, on an annual basis,
will develop and implement a measurable and attainable plan, based on the needs of the
students in their school, to show progress towards achieving the Board’s Social and
Emotional Learning Growth Objectives. The multi-year plan which will be reviewed
annually must contain multiple measures.
- v -