FY11-ISC04-Fin-Full

              STATE OF ILLINOIS
SOUTH COOK INTERMEDIATE
SERVICE CENTER NO. 4
FINANCIAL AUDIT
(IN ACCORDANCE WITH THE SINGLE AUDIT ACT
AND OMB CIRCULAR A-133)
FOR THE YEAR ENDED JUNE 30, 2011
PERFORMED AS SPECIAL ASSISTANT AUDITORS
FOR THE OFFICE OF THE AUDITOR GENERAL
SOUTH COOK INTERMEDIATE SERVICE CENTER NO. 4
TABLE OF CONTENTS
Officials 1
Compliance Report Summary 2
Financial Statement Report Summary 3
INDEPENDENT AUDITORS’ REPORT 4 – 5
INDEPENDENT AUDITORS’ 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 6 – 7
INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE WITH
REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL
EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL
OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 8 – 9
Schedule of Findings and Questioned Costs 10 – 13
Corrective Action Plan for Current Year Audit Findings 14
Summary Schedule of Prior Audit Findings 15
Management ’s Discussion and Analysis 16 – 19
FINANCIAL STATEMENTS
Statement of Net Assets 20
Statement of Activities 21
Balance Sheet – Governmental Funds 22
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Assets 23
Statement of Revenues, Expenditures and Changes in Fund
Balance – Governmental Funds 24
Reconciliation of the Statement of Revenues, Expenditures
and Changes in Fund Balance to the Statement of Activities –
Governmental Funds 25
Notes to Basic Financial Statements 26 – 44
REQUIRED SUPPLEMENTA RY INFORMATION
(Other than Management’s Discussion and Analysis)
Illinois Municipal Retirement Fund – Schedule of Funding Progress 45
SOUTH COOK INTERMEDIATE SERVICE CENTER NO. 4
TABLE OF CONTENTS (Continued)
Post Employment Benefits Other than Pensions – Schedule of Funding Progress 46
OTHER SUPPLEMENTARY INFORMATION
Budgetary Comparison Schedule – General Fund Accounts 47 – 50
Budgetary Comparison Schedule – Education Fund Accounts 51 – 53
Budgetary Comparison Schedule – Nonmajor Special Revenue Fund Accounts 54
FEDERAL COMPLIANCE SECTION
Schedule of Expenditures of Federal Awards 55
Notes to the Schedule of Expenditures of Federal Awards 56 – 57
OFFICIALS
SOUTH COOK INTERMEDIATE SERVICE CENTER NO. 4
Executive Director (Current and during audit period) Dr. Vanessa Kinder
Executive Assistant (Current and during audit period) Ms. Joani Fadool
Bookkeeper (Current and during audit period) Ms. Shelia Ivy
Offices are located at:
253 West Joe Orr Road
Chicago Heights, IL 60411
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COMPLIANCE REPORT
SUMMARY
The compliance audit testing performed during this audit was conducted in accordance with Government
Auditing Standards and in accordance with the Illinois State Auditing Act.
AUDITORS’ REPORTS
The auditors’ reports on compliance and on internal controls do not contain scope limitations, disclaimers,
or other significant non-standard language.
SUMMARY OF AUDIT FINDINGS
Number of This Audit Prior Audit
Audit findings 1 1
Repeated audit findings 1 1
Prior recommendations implemented
or not repeated 0 0
Details of the audit findings are presented in a separate report section.
SUMMARY OF FINDINGS AND QUESTIONED COSTS
Item No. Page Description Finding Type
FINDINGS (GOVERNMENT AUDITING STANDARDS)
11-1 11 Controls Over Financial Statement Preparation M a terial Weakness
FINDINGS AND QUESTIONED COSTS (FEDERAL COMPLIANCE)
N/A
PRIOR FINDINGS NOT REPEATED (GOVERNMENT AUDITING STANDARDS)
N/A
PRIOR FINDINGS NOT REPEATED (FEDERAL COMPLIANCE)
N/A
EXIT CONFERENCE
The Center waived having an exit conference per a letter dated February 26, 2012. Responses to the
recommendations were provided by Dr. Vanessa Kinder, Executive Director, in a letter dated February 26,
2012.
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FINANCIAL STATEMENT
REPORT SUMMARY
The audit of the accompanying basic financial statements of South Cook Intermediate Service Center No. 4
was performed by Bass, Solomon, and Dowell, LLP.
Based on their audit, the auditors expressed an unqualified opinion on the Agency’s basic financial
statements.
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INDEPENDENT AUDITORS’ REPORT
Honorable William G. Holland
Auditor General
State of Illinois
Board of Directors
South Cook Intermediate Service Center No. 4
As Special Assistant Auditors for the Auditor General, we have audited the accompanying financial
statements of the governmental activities, each major fund, and the aggregate remaining fund information
of the South Cook Intermediate Service Center No. 4, as of and for the year ended June 30, 2011, which
collectively comprise the South Cook Intermediate Service Center No. 4’s basic financial statements as
listed in the table of contents. These financial statements are the responsibility of the South Cook
Intermediate Service Center No. 4’s management. Our responsibility is to express opinions on these
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting principles used and
the significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, each major fund, and the aggregate remaining
fund information of the South Cook Intermediate Service Center No. 4, as of June 30, 2011, and the
respective changes in financial position thereof for the year then ended in conformity with accounting
principles generally accepted in the United States of America.
South Cook Intermediate Service Center No. 4 adopted GASB Statement No. 54, Fund Balance Reporting
and Governmental Fund Type Definitions during the year ended June 30, 2011. The statement changed the
classifications of governmental fund balances and clarified the definitions of existing fund types. The
adoption of this statement had no effect on any of South Cook Intermediate Service Center No. 4’s
governmental funds’ assets or liabilities nor was there any effect to the total amount of any of the South
Cook Intermediate Service Center No. 4’s governmental fund balances as of and for the year ended June 30,
2011.
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In accordance with Government Auditing Standards, we have also issued a report dated March 9, 2012 on
our consideration of the South Cook Intermediate Service Center No. 4’s internal control over financial
reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements and other matters. The purpose of that report is to describe the scope of our testing of internal
control over financial reporting and compliance and the results of that testing, and not to provide an opinion
on the internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards and should be considered in assessing the
results of our audit.
The Management’s Discussion and Analysis, the Illinois Municipal Retirement Fund-Schedule of Funding
Progress and the Post Employment Benefits Other than Pensions Schedule of Funding Progress, on pages
16 through 19, page 45 and page 46, are not a required part of the basic financial statements but are
supplementary information required by accounting principles generally accepted in the United States of
America. We have applied certain limited procedures, which consisted principally of inquiries of
management regarding the methods of measurement and presentation of the required supplementary
information. However, we did not audit the information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the South Cook Intermediate Service Center No. 4’s basic financial statements. The Budgetary
Comparison Schedules are presented for purposes of additional analysis and are not a required part of the
basic financial statements. The accompanying Schedule of Expenditures of Federal Awards is presented for
purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-133,
Audits of States, Local Governments, and Non-Profit Organizations, and is also not a required part of the
basic financial statements. The Budgetary Comparison Schedules and the Schedule of Expenditures of
Federal Awards have been subjected to the auditing procedures applied in the audit of the basic financial
statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial
statements taken as a whole.
Palatine , Illinois
March 9, 2012
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INDEPENDENT AUDITORS’ 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
Honorable William G. Holland
Auditor General
State of Illinois
Board of Directors
South Cook Intermediate Service Center No. 4
As Special Assistant Auditors for the Auditor General, we have audited the financial statements of the
governmental activities, each major fund, and the aggregate remaining fund information of the South Cook
Intermediate Service Center No. 4, as of and for the year ended June 30, 2011, which collectively comprise
the South Cook Intermediate Service Center No. 4’s basic financial statements and have issued our report
thereon dated March 9, 2012. We conducted our audit in accordance with auditing standards generally
accepted in the United States of America and the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States.
Internal Control Over Financial Reporting
Management of South Cook Intermediate Service Center No. 4 is responsible for establishing and
maintaining effective internal control over financial reporting. In planning and performing our audit, we
considered the South Cook Intermediate Service Center No. 4’s internal control over financial reporting as a
basis for designing our auditing procedures for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the South Cook
Intermediate Service Center No. 4’s internal control over financial reporting. Accordingly, we do not
express an opinion on the effectiveness of the South Cook Intermediate Service Center No. 4’s internal
control over financial reporting.
Our consideration of internal control over financial reporting was for the limited purpose described in the
preceding paragraph and was not designed to identify all deficiencies in the internal control over financial
reporting that might be significant deficiencies or material weaknesses and therefore, there can be no
assurance that all deficiencies, significant deficiencies, or material weaknesses have been identified.
However, as described in the accompanying Schedule of Findings and Questioned Costs, we identified a
certain deficiency in internal control over financial reporting that we consider to be material weakness.
A deficiency in internal control exists when the design or operation of a control does not allow management
or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct
misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in
internal control, such that there is a reasonable possibility that a material misstatement of the entity’s
financial statements will not be prevented, or detected and corrected on a timely basis. We consider the
deficiency described in finding 11-1 in the accompanying Schedule of Finding and Questioned Costs to be a
material weakness.
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Compliance and Other Matters
As part of obtaining reasonable assurance about whether the South Cook Intermediate Service Center No.
4’s financial statements are free of material misstatement, we performed tests of its compliance with certain
provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a
direct and material effect on the determination of financial statement amounts. However, providing an
opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not
express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters
that are required to be reported under Government Auditing Standards.
South Cook Intermediate Service Center No. 4’s response to the finding identified in our audit is described
in the accompanying Schedule of Findings and Questioned Costs. We did not audit South Cook
Intermediate Service Center No. 4’s response and, accordingly, we express no opinion on it.
This report is intended solely for the information and use of the Auditor General, the General Assembly, the
Legislative Audit Commission, the Governor, agency management, others within the entity, Illinois State
Board of Education, federal awarding agencies and pass-through entities and is not intended to be and
should not be used by anyone other than these specified parties.
Palatine, Illinois
March 9, 2012
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INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE WITH REQUIREMENTS THAT
COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND
ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH
OMB CIRCULAR A-133
Honorable William G. Holland
Auditor General
State of Illinois
Board of Directors
South Cook Intermediate Service Center No. 4
Compliance
We have audited the South Cook Intermediate Service Center No. 4’s compliance with the types of
compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a
direct and material effect on each of South Cook Intermediate Service Center No. 4’s major federal
programs for the year ended June 30, 2011. The South Cook Intermediate Service Center No. 4’s major
federal programs are identified in the summary of auditor’s results section of the accompanying Schedule of
Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts, and
grants applicable to each of its major federal programs is the responsibility of the South Cook Intermediate
Service Center No. 4’s management. Our responsibility is to express an opinion on the South Cook
Intermediate Service Center No. 4’s compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America; the standards applicable to financial audits contained in Government Auditing
Standards , issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of
States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133
require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance
with the types of compliance requirements referred to above that could have a direct and material effect on
a major federal program occurred. An audit includes examining, on a test basis, evidence about the South
Cook Intermediate Service Center No. 4’s compliance with those requirements and performing such other
procedures as we considered necessary in the circumstances. We believe that our audit provides a
reasonable basis for our opinion. Our audit does not provide a legal determination of the South Cook
Intermediate Service Center No. 4’s compliance with those requirements.
In our opinion, South Cook Intermediate Service Center No. 4 complied, in all material respects, with the
compliance requirements referred to above that could have a direct and material effect on each of its major
federal programs for the year ended June 30, 2011.
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Internal Control Over Compliance
Management of the South Cook Intermediate Service Center No. 4 is responsible for establishing and
maintaining effective internal control over compliance with the requirements of laws, regulations, contracts,
and grants applicable to federal programs. In planning and performing our audit, we considered the South
Cook Intermediate Service Center No. 4’s internal control over compliance with the requirements that could
have a direct and material effect on a major federal program to determine the auditing procedures for the
purpose of expressing our opinion on compliance and to test and report on internal control over compliance
in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the
effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the
effectiveness of South Cook Intermediate Service Center No. 4’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.
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 deficiencies, significant deficiencies, or material weaknesses. We did not identify
any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined
above.
This report is intended solely for the information and use of the Auditor General, the General Assembly, the
Legislative Audit Commission, the Governor, agency management, others within the entity, Illinois State
Board of Education, federal awarding agencies and pass-through entities and is not intended to be and
should not be used by anyone other than these specified parties.
Palatine , Illinois
March 9, 2012
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Section I - Summary of Auditor's Results
Financial Statements
Type of auditor's report issued:
Internal control over financial reporting:
• Material weakness(es) identified? X yes no
• Significant deficiency(ies) identified? yes X none reported
• Noncompliance material to financial statements noted? yes X no
Federal Award:
Internal Control over major programs:
• Material weakness(es) identified? yes X no
• Significant deficiency(ies) identified? yes X none reported
Type of auditor's report issued on compliance
for major programs:
Any audit findings disclosed that are required
to be reported in accordance with
Circular A-133, Section .510(a)? yes X no
Identification of major programs:
CFDA Number
84.010A
84.389
84.357A
Dollar threshold used to distinguish
between Type A and Type B programs: $300,000
Auditee qualified as low-risk auditee? yes X no
Agencies, Recovery Act
Title I - Reading First Part B SEA Funds
Unqualified
Unqualified
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SOUTH COOK INTERMEDIATE SERVICE CENTER NO. 4
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2011
Name of Federal Program or Cluster
Title I - School Improvement & Accountability
ARRA Title I Grants to Local Educational
SOUTH COOK INTERMEDIATE SERVICE CENTER NO. 4
Schedule of Findings and Questioned Costs
Year Ended June 30, 2011
Section II – Financial Statement Findings
Finding No. 11-1 – Controls Over Financial Statement Preparation
(Repeat of Finding 10-1, 09-1, and 08-1)
1. Criteria/specific requirement:
South Cook Intermediate Service Center No. 4 (Service Center) is required to maintain a system of
controls over the preparation of financial statements in accordance with generally accepted
accounting principles (GAAP). South Cook Intermediate Service Center No. 4’s internal controls
over GAAP financial reporting should include adequately trained personnel with the knowledge and
expertise to prepare and/or thoroughly review GAAP based financial statements to ensure that they
are free of material misstatements and include all disclosures as required by the Governmental
Accounting Standards Board (GASB).
2. Condition:
South Cook Intermediate Service Center No. 4 does not have sufficient internal controls over the
financial reporting process. The Service Center maintains its accounting records on the cash basis of
accounting. While the Service Center maintains controls over the processing of most accounting
transactions, there are not sufficient controls over the preparation of GAAP based financial
statements for management or employees in the normal course of performing their assigned
functions to prevent or detect financial statement misstatements and disclosure omissions in a timely
manner. For example, auditors in their review of the Service Center’s accounting records noted the
following:
The Service Center did not have adequate controls over the maintenance of complete
records of accounts receivable, accounts payable, or deferred revenue.
Numerous adjustments were required to present financial statements in accordance with
generally accepted accounting principles.
3. Effect:
Management or employees in the normal course of performing their assigned functions may not
prevent or detect financial statement misstatements and disclosure omissions in a timely manner.
4. Cause:
According to South Cook Intermediate Center No. 4’s officials, they did not have adequate funding
to hire and/or train accounting personnel in order to comply with these requirements.
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SOUTH COOK INTERMEDIATE SERVICE CENTER NO. 4
Schedule of Findings and Questioned Costs
Year Ended June 30, 2011
Section II – Financi al Statement Findings (Concluded)
Finding No. 11-1 – Controls Over Financial Statement Preparation
(Repeat of Finding 10-1, 09-1, and 08-1) (Concluded)
5. Recommen dation:
As part of its internal control over the preparation of financial statements, including disclosures, we
recommend that South Cook Intermediate Service Center No. 4 implement comprehensive
preparation and/or review procedures to ensure that financial statements, including disclosures, are
complete and accurate. Such procedures should be performed by a properly trained individual(s)
possessing a thorough understanding of applicable generally accepted accounting principles, GASB
pronouncements, and knowledge of the Interme diate Service Center’s activities and operations .
6. Management’s response:
South Cook Intermediate Service Center No. 4 has discussed the options concerning the capabilities
of preparing financial statements, including complete footnote disclosures that would not require
significant changes by the auditor. We believe that it would not be cost beneficial to hire another
employee or service provider to perform such a task. South Cook Intermediate Service Center No. 4
is confident in the abilities of the accounting/bookkeeping staff to prepare cash basis financial
information as needed for reporting purposes throughout the year. In addition, the Bloom Township
Treasurer’s Office also oversees all financial statement preparation. Management will pursue
additional training when it is considered cost beneficial since training costs would take away from
the funds available to provide educational services for the schools in the region.
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SOUTH COOK INTERMEDIATE SERVICE CENTER NO. 4
Schedule of Findings and Questioned Costs
Year Ended June 30, 2011
Section III – Federal Award Findings
There were no findings for the fiscal year ended June 30, 2011.
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SOUTH COOK INTERMEDIATE SERVICE CENTER NO. 4
Corrective Action Plan for Current-Year Audit Finding
Year Ended June 30, 2011
Corrective Action Plan
Finding No. 11-1 - Controls Over Financial Statement Preparation
Condition:
South Cook Intermediate Service Center No. 4 does not have sufficient internal controls over the financial
reporting process. The Service Center maintains its accounting records on the cash basis of accounting.
While the Service Center maintains controls over the processing of most accounting transactions, there are
not sufficient controls over the preparation of GAAP based financial statements for management or
employees in the normal course of performing their assigned functions to prevent or detect financial
statement misstatements and disclosure omissions in a timely manner. For example, auditors in their
review of the Service Center’s accounting records noted the following:
The Service Center did not have adequate controls over the maintenance of complete records of
accounts receivable, accounts payable, or deferred revenue.
Numerous adjustments were required to present financial statements in accordance with
generally accepted accounting principles.
Corrective Action Plan:
South Cook Intermediate Service Center No. 4 has discussed the options concerning the capabilities of
preparing financial statements, including complete footnote disclosures that would not require significant
changes by the auditor. We believe that it would not be cost beneficial to hire another employee or service
provider to perform such a task. South Cook Intermediate Service Center No. 4 is confident in the abilities
of the accounting/bookkeeping staff to prepare cash basis financial information as needed for reporting
purposes throughout the year. In addition, the Bloom Township Treasurer’s Office also oversees all
financial statement preparation. Management will pursue additional training when it is considered cost
beneficial since training costs would take away from the funds available to provide educational services for
the schools in the region.
Anticipated Date of Completion:
The Center will implement the corrective action plan immediately.
Name of Contact Person:
Dr. Vanessa Kinder, Executive Director.
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SOUTH COOK INTERMEDIATE SERVICE CENTER NO. 4
Summary Schedule of Prior Audit Findings
Year Ended June 30, 2011
Finding Number Condition Current Status
10-1 Controls Over Financial Statement Preparation R e p e a t e d
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MANAGEMENT’S DISCUSSION AND ANALYSIS
(Required Supplementary Information)
SOUTH COOK INTERMEDIATE SERVICE CENTER NO. 4
Required Supplementary Information
Management ’s Discuss ion and Analysis
Year Ended June 30, 2011
As management of South Cook Intermediate Service Center No. 4, we offer the readers of the financial
statements this narrative overview and analysis of the financial activities of South Cook Intermediate
Service Center No. 4 for the year ended June 30, 2011.
Management’s Discussion and Analysis (MD&A) is an element of required supplementary information
specified in the Governmental Accounting Standards Board’s (GASB) Statement No. 34 issued in June
1999. Certain comparative information between the current year (2011) and the prior year (2010) is
required to be presented in the MD&A.
MD&A is provided at the beginning of the report to provide an overview of South Cook Intermediate
Service Center No. 4’s financial position at June 30, 2011 and the results of operations for the year. This
summary should not be taken as a replacement for the audit report, which consists of the financial
statements, notes to the financial statements, required and other supplementary information.
During fiscal year 2011, South Cook Intermediate Service Center No. 4 implemented Governmental
Accounting Standards Board (GASB) Statement No. 54, Fund Balance Reporting and Governmental Fund
Type Definitions, which required certain programs and funds to be reclassified and the restatement of
beginning fund balances in the financial statements. Because of these reclassifications, the fund analysis is
not comparable between fiscal year 2010 and fiscal year 2011.
Using This Financial Report
The financial section of this annual report consists of four parts – Independent Auditor’s Reports, required
supplementary information which includes the MD&A (this section), the basic financial statements, and
other supplementary information. The basic financial statements include two kinds of statements that
present different views of South Cook Intermediate Service Center No. 4: 1) Government-wide financial
statements and 2) fund financial statements.
Government – Wide Financial Statements
The first two statements are government-wide financial statements that provide both short term and long
term information about South Cook Intermediate Service Center No. 4’s overall financial status, similar to a
private sector business. In the government-wide financial statements, activities are shown in one category –
governmental activities. South Cook Intermediate Service Center No. 4’s basic service is education. These
activities are largely financed with local, State and federal revenues.
The Statement of Net Assets presents information on all of South Cook Intermediate Service Center No. 4’s
assets and liabilities, with the difference between the two reported as net assets. Over time, increases or
decreases in net assets may serve as a useful indicator of whether the financial position of South Cook
Intermediate Service Center No. 4 is improving or deteriorating.
The Statement of Activities presents information showing how the government’s net assets changed during
the most recent fiscal year. The financial statements are prepared under the accrual basis of accounting,
whereby revenues and assets are recognized when earned; expenditures and liabilities are recognized when
incurred .
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SOUTH COOK INTERMEDIATE SERVICE CENTER NO. 4
Required Supplementary Information
Management ’s Discussion and Analysis (Continued)
Year Ended June 30, 2011
Fund Financial Statements
The fund financial statements provide more detailed information about South Cook Intermediate Service
Center No. 4’s funds – not South Cook Intermediate Service Center No. 4 as a whole. Funds are specific
segregations of cash and accounting devices South Cook Intermediate Service Center No. 4 uses to keep
track of specific sources of funding and spending on particular programs. Some funds are required by state
law, while others are established to control and manage money for particular purposes or to show that South
Cook Intermediate Service Center No. 4 is properly using certain revenues.
Because the focus of the governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for each. By doing so, readers may better
understand the long-term impact of South Cook Intermediate Service Center No. 4’s near-term financing
decisions. Both the governmental fund Balance Sheet and the governmental fund Statement of Revenues,
Expenditures, and Changes in Fund Balance provide a reconciliation to facilitate the comparison between
governmental funds and governmental activities.
South Cook Intermediate Service Center No. 4 maintains various governmental funds. Information is
presented separately in the governmental fund Balance Sheet and in the governmental fund Statement of
Revenues, Expenditures, and the Changes in Fund Balance for these funds. More detail of the individual
revenues and expenditures for these funds are presented in the supplementary section of this report.
South Cook Intermediate Service Center No. 4 is not legally required to adopt budgets. South Cook
Intermediate Service Center No. 4 is required by the Illinois State Board of Education, the granting agency,
to adopt annual budgets for the Education Fund of the governmental funds. A budgetary comparison
schedule has been provided as supplementary information for the general, education, and nonmajor special
revenue funds, which is in compliance with GASB Statement No. 34.
Condensed Financial Information
Net assets are summarized in the table below.
June 30, 2011 June 30, 2010
Assets:
Current Assets $ 7,533,720 $ 7,582,540
Capital Assets 3,472,111 3,600,257
Total Assets 11,005,831 11,182,797
Liabilities:
Current Liabilities 2,432,435 756,370
Non-current Liabilities -0- -0-
Total Liabilities 2,432,435 756,370
Net Assets:
Invested Capital Assets, net of
related debt 3,472,111 3,600,257
Unrestricted 4,509,045 6,826,170
Restricted for educational purposes 592,240 -0-
Total Net Assets $ 8,573,396 $ 10,426,427
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SOUTH COOK INTERMEDIATE SERVICE CENTER NO. 4
Required Supplementary Information
Management ’s Discussion and Analysis (Continued)
Year Ended June 30, 2011
Condensed Financial Information (continued)
Current assets consist of cash, investments , and accounts receivable -governmental claims. South Cook
Intermediate Service Center No. 4’s net assets consist of unrestricted and restricted net assets and invested
capital assets net of related debt.
Revenues, expenses, and changes in net assets are summarized in the table below.
Condensed Statement of Activities
For Fiscal Year Ending:
June 30, 2011 June 30, 2010
Revenues received:
Program:
Operating grants and contributions $ 4,140,504 $ 6,261,232
General:
Local sources 1,313,335 1,044,946
On-behalf payments 373,990 362,498
Interest 121,329 206,486
Total revenue received 5,949,158 7,875,162
Expenditures disbursed:
Instruction 1,096,542 1,100,793
Supporting services 5,263,516 5,554,861
Community services -0- -0-
Nonprogrammed charges 1,068,141 939,957
Debt Service -0- -0-
Administrative services:
On-behalf payments 373,990 362,498
Total expenditures disbursed 7,802,189 7,958,109
Change in net assets (1,853,031 ) (82,947 )
Net assets – beginning 10,426,427 10,509,374
Net assets – ending $ 8,573,396 $ 10,426,427
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SOUTH COOK INTERMEDIATE SERVICE CENTER NO. 4
Required Supplementary Information
Management ’s Discussion and Analysis (Concluded )
Year Ended June 30, 2011
Major sources of operating revenues for South Cook Intermediate Service Center No. 4 include: Federal
and State grants and intergovernmental revenue.
Management’s Analysis of the ISC’s Overall Financial Position and Results of Operations
As shown in the condensed Statement of Activities, the cost of government activities for this year was
$7,802,189 . Federal and State grants financed 70% of this or $4,140,504. Local sources were the next
largest contributor with $1,313,335.
Capital assets
During the year ended June 30, 2011, South Cook Intermediate Service Center No. 4 invested monies in
various capital assets. Total additions this year were $114,994 . Capital asset additions consisted primarily
of the purchase of a building, computer s and surveillance equipment.
Net Assets
During the year, net assets decreased by $1,853,031, which is significantly higher than the $82,947 decrease
for fiscal year ended June 30, 2010. Total revenue for fiscal year ended June 30, 2010 was $7,875,162 and
decreased by $1,926,004 to $5,949,158 for fiscal year ended June 30, 2011. This was mainly due to a
decrease in State and Federal grant monies. Expense s decreased by $155,920 from $7,958,109 in fiscal year
ended June 30, 2010, to $7,802,189 in fiscal year ended June 30, 2011. Expenditures were lower in fiscal
year 2011 compared to fiscal year 2010 due to a slight decrease in instruction and supporting services. The
factors which have contributed to this condition are explained below.
Factors or Conditions Impacting Future Periods
On the revenue side, even though State and Federal grant monies decreased; local revenue was higher due
to the new ROE responsibilities assumed by the Center and an increase in the number of participants
enrolled in the various programs offered by South Cook Intermediate Service Center No. 4.
On the expenditure side, increases in service demands by growing districts in the educational service region
will continue to place increasing pressure on spending.
In summary, this expectation of continued increases in service demand will result in larger response times,
reduced array of services, and the need to do more with existing human resources.
Contacting the Intermediate Service Center’s Financial Management
This financial report is designed to provide the South Cook Intermediate Service Center No. 4’s citizens,
taxpayers, clients and other constituents with a general overview of its finances and to demonstrate
accountability for the money it receives. If the reader has questions concerning this report or need
additional financial information, please contact the Executive Director of the South Cook Intermediate
Service Center No. 4 at 253 West Joe Orr Road, Chicago Heights, IL.
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BASIC FINANCIAL STATEMENTS
ASSETS Governmental
Activities
Current assets:
Cash and investments $ 6,718,606
Accounts receivable - governmental claims 815,114
Total current assets 7,533,720
Noncurrent assets:
Capital Assets, being depreciated, net 3,472,111
Total assets 11,005,831
LIABILITIES
Current Liabilities:
Accounts payable 1,196,952
Deferred revenue 1,235,483
Total current liabilities 2,432,435
NET ASSETS
Invested capital assets, net of related debt 3,472,111
Unrestricted 4,509,045
Restricted for educational purposes 592,240
Total net assets $ 8,573,396
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SOUTH COOK INTERMEDIATE SERVICE CENTER NO. 4
Statement of Net Assets
June 30, 2011
The notes to the financial statements are an integral part of this statement.
Net (Expense) Revenue
Program and Changes in
Revenues Net Assets
Operating Primary Government
Grants and Governmental
Expenses Contributions Activities
FUNCTIONS/PROGRAMS
Primary government:
Governmental activities:
Instructional services:
Instruction $ 1,096,542 $ - $ (1,096,542)
Supporting services 5,263,516 4,104,624 (1,158,892)
Nonprogrammed charges 1,068,141 35,880 (1,032,261)
Administrative:
On-behalf payments 373,990 -0- (373,990)
Total governmental activities $ 7,802,189 $ 4,140,504 (3,661,685)
General revenues:
Local sources 1,313,335
On-behalf payments 373,990
Interest 121,329
Total general revenues, special and
extraordinary items, and transfers 1,808,654
Change in net assets (1,853,031)
Net assets - beginning 10,426,427
Net assets - ending $ 8,573,396
SOUTH COOK INTERMEDIATE SERVICE CENTER NO. 4
Statement of Activities
Year Ended June 30, 2011
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The notes to the financial statements are an integral part of this statement.
Nonmajor Total
General Education Special Revenue Governmental
ASSETS Fund Fund Funds Funds
Petty cash $ 200 $ -0- $ -0- $ 200
Cash - Imprest fund 10,000 -0- -0- 10,000
Cash - Old Second Bank 4,458 -0- -0- 4,458
Equity in pooled cash and investments 5,788,774 886,980 28,194 6,703,948
Due from other governments 356,495 439,293 19,326 815,114
Total assets $ 6,159,927 $ 1,326,273 $ 47,520 $ 7,533,720
LIABILITIES
Accounts payable $ 110,291 $ 1,073,847 $ 12,814 $ 1,196,952
Deferred revenue 59,415 1,290,493 -0- 1,349,908
Total liabilities 169,706 2,364,340 12,814 2,546,860
FUND BALANCE
Nonspendable -0- -0- -0- -0-
Restricted 475,311 -0- 34,706 510,017
Committed -0- -0- -0- -0-
Assigned 2,284,716 -0- -0- 2,284,716
Unassigned 3,230,194 (1,038,067) -0- 2,192,127
Total fund balance 5,990,221 (1,038,067) 34,706 4,986,860
Total liabilities
and fund balance $ 6,159,927 $ 1,326,273 $ 47,520 $ 7,533,720
The notes to the financial statements are an integral part of this statement.
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SOUTH COOK INTERMEDIATE SERVICE CENTER NO. 4
Balance Sheet
Governmental Funds
June 30, 2011
Total fund balance - governmental funds $ 4,986,860
Amounts reported for governmental activities in the Statement of Net
Assets are different because:
Capital assets used in governmental activities are not
financial resources and therefore, are not reported in the funds. 3,472,111
Revenues in the Statement of Activities that do not
provide current financial resources are not reported
as revenues in the funds 114,425
Net assets of governmental activities $ 8,573,396
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SOUTH COOK INTERMEDIATE SERVICE CENTER NO. 4
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Assets
June 30, 2011
The notes to the financial statements are an integral part of this statement.
Nonmajor Total
General Education Special Revenue Governmental
Fund Fund Funds Funds
REVENUES
Local Sources $ 1,010,605 $ 113,916 $ 188,814 $ 1,313,335
State Sources 1,876,977 515,041 -0- 2,392,018
Federal Sources - 2,080,127 -0- 2,080,127
Total Direct Revenues 2,887,582 2,709,084 188,814 5,785,480
On-behalf Payments 373,990 -0- -0- 373,990
Total Revenues 3,261,572 2,709,084 188,814 6,159,470
EXPENDITURES
Instruction 1,096,542 -0- -0- 1,096,542
Support Services 2,399,842 2,634,848 100,680 5,135,370
Community Services -0- -0- -0- -0-
Nonprogrammed Charges -0- 1,014,713 53,428 1,068,141
Total Direct Expenditures 3,496,384 3,649,561 154,108 7,300,053
On-behalf Payments 373,990 -0- -0- 373,990
Total Expenditures 3,870,374 3,649,561 154,108 7,674,043
OTHER FINANCING SOURCES/(USES)
Interest 121,329 -0- -0- 121,329
Total other financing sources 121,329 -0- -0- 121,329
Net Change in Fund Balance (487,473) (940,477) 34,706 (1,393,244)
Fund Balance, July 1, 2010 6,477,694 (97,590) -0- 6,380,104
Fund Balance, June 30, 2011 $ 5,990,221 $ (1,038,067) $ 34,706 $ 4,986,860
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SOUTH COOK INTERMEDIATE SERVICE CENTER NO. 4
Statement of Revenues, Expenditures and Changes in Fund Balance
Governmental Funds
Year Ended June 30, 2011
The notes to the financial statement are an integral part of this statement.
Net change in fund balances $ (1,393,244)
Amounts reported for governmental activities in the
Statement of Activities are different because:
Governmental funds report capital outlays as expenditures.
However, in the Statement of Activities the cost of those
assets is allocated over their estimated useful lives
and reported as depreciation expense.
Capital outlay $ 114,994
Depreciation expense (242,371)
Net adjustment (127,377)
Loss on disposal of capital assets (769)
Revenues in the Statement of Activities that did not
provide financial resources in the prior year
and are not reported as revenues in the
government-wide statements in the current year (446,066)
Revenues in the Statement of Activities that do not
provide current financial resources are not reported
as revenues in the funds 114,425
Change in net assets of governmental activities $ (1,853,031)
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SOUTH COOK INTERMEDIATE SERVICE CENTER NO. 4
Governmental Funds
Year Ended June 30, 2011
Reconciliation of the Statement of Revenues, Expenditures,
and Changes in Fund Balances to the Statement of Activities
The notes to the financial statements are an integral part of this statement.
SOUTH COOK INTERMEDIATE SERVICE CENTER NO. 4
Notes to Basic Financial Statements
June 30, 2011
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Beginning on the first Monday of August 1995, each of the 45 Regional Offices of Education
established pursuant to Section 3A-4 of the Illinois School Code (105 ILCS 5/3A-4) shall have an
oversight board to carry out the duties and oversee the planning and delivery of programs and
services as specified in the Illinois School Code (105 ILCS 5/3A-16 and 3A-17).
That portion of Cook County outside of the City of Chicago will constitute a Regional Office of
Education (105 ILCS 5/3A-1) and its oversight board shall be responsible for the duties and
programs specified in Section 3A-17 of the Illinois School Code and be administered through three
(3) Intermediate Service Centers (North Cook, West Cook and South Cook).
South Cook now known as South Cook Intermediate Service Center No. 4, includes the area within
the territorial boundaries of the following school districts:
Summit School Dist. No. 104 Willow Springs School Dist. No. 108 Indian Springs School Dist. No. 109
Central Stickney School Dist. No. 110 Burbank School Dist. No. 111 Lemont-Bromberek School Dist. No.113A
North Palos School Dist. No. 118 Palos Com. Cons. School Dist. No. 118 Ridgeland School Dist. No. 122
Oak Lawn-Hometown School Dist. No.
123
Evergreen Park School Dist. No. 124 Atwood Heights School Dist. No. 125
Alsip/Hazelgreen/Oak Lawn School Dist.
No. 126
Worth School Dist. No. 127 Chicago Ridge School Dist. No. 127 ½
Palos Heights School Dist. No. 128 Blue Island School Dist. No. 130 Calumet Park School Dist. No. 132
Patton School Dist. No. 133 Orland Park School Dist. No. 135 Kirby School Dist. No. 140
Forest Ridge School Dist. No. 142 Midloth ian School Dist. No. 143 Posen-Robbins School Dist. No. 143 ½
Prairie -Hills School Dist. No. 144 Arbor Park School Dist. No. 145 Tinley Park School Dist. No. 146
Harvey/Dixmoo r School Dist. No. 147 Dolton West School Dist. No. 148 Dolton School Dist. No. 149
South Holland School Dist. No. 150 South Holland School Dist. No. 151 Harvey School Dist. No. 152
Hazel Crest School Dist. No. 152 ½ Homewood School Dist. No. 153 Thornton School Dist. No. 154
Burnham School Dist. No. 154 ½ Calumet City School Dist. No. 155 Lincoln School Dist. No. 156
Hoover/Schrum School Dist. No. 157 Lansing School Dist. No. 158 Elementary District School Dist. No. 159
Country Club Hills School Dist. No. 160 Flossmoor School Dist. No. 161 Matteson School Dist. No. 162
Park Forest-Chicago Heights School Dist.
No. 163
Brookwood School Dist. No. 167 Community Consolidated School Dist. No.
168
Ford Heights School Dist. No. 169 Chicago Heights School Dist. No. 170 Sunnybrook School Dist. No. 171
Sandridge School Dist. No. 172 Steger School Dist. No. 194 Thornton Twp. H.S. Dist. No. 205
Bicom Twp. H.S. Dist. No. 206 Lemont Twp. H.S. Dist. No. 210 T-F Township H.S. Dist. No. 215
Argo Community H.S. Dist. No. 217 Community H.S. Dist. No. 218 Reavis H.S. Dist. No. 220
Rich Twp H.S. Dist. No. 227 Bremen Community H.S. Dist. No. 228 Oak Lawn Community H.S. Dist. No. 229
Consolidated H.S. Dist. No. 230 Evergreen Park H.S. Dist. No. 231 H-F Community H.S. Dist. No. 233
South Cook Intermediate Service Center No. 4 is governed by a twelve member board. The
administra tive agent designated for this Center is Robert Grossi, of the Bloom Township Treasurer’s
Office .
In accordance with the Illinois School Code (105 ILCS 2/3.62) the services to be made available
shall include the planning, implementation and evaluation of the following:
Education for Gifted Children;
Computer Technology Education;
Mathematics, Science and Reading Resources for teachers, including continuing education, in-service
training, and staff development.; and
Teacher Certification.
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SOUTH COOK INTERMEDIATE SERVICE CENTER NO. 4
Notes to Basic Financial Statements
June 30, 2011
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
South Cook Intermediate Service Center No. 4 (also referred to herein as “Center”) may also provide
training, technical assistance, coordination and planning in other program areas. The State Board of
Education shall promulgate rules and regulations necessary to operate South Cook Intermediate
Service Center No. 4.
A. Reporting Entity:
South Cook Intermediate Service Center No. 4 provides educational services to sixty-six
member school districts and is governed by the Governing Board. Operations are conducted
through one of its member districts which acts as its administrative agent.
These financial statements include South Cook Intermediate Service Center No. 4 and its
component units, entities for which it is considered financially accountable. As defined by
GASB Statement 14, “The Financial Reporting Entity”, South Cook Intermediate Service
Center No. 4 is not financially accountable for any other entity nor are there any other entities
for which the nature and significance of their relationship with South Cook Intermediate
Service Center No. 4 are such that exclusion would cause South Cook Intermediate Service
Center No. 4’s financial statements to be misleading or incomplete.
Based upon the above criteria, Intermediate Service Center No. 4 is not aware of any entity
which would be financially accountable for Intermediate Service Center No. 4, which would
result in Intermediate Service Center No. 4 being considered a component entity.
B. Government -Wide and Fund Financial Statements:
The government-wide financial statements (i.e., the Statement of Net Assets and the Statement
of Activities) report information on all of the nonfiduciary activities of the Intermediate
Service Center. These basic financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting. Revenues are recorded when earned
and expenses are recorded when a liability is incurred, regardless of the timing of the related
cash flows. Grants and similar items are recognized as revenue as soon as all the eligibility
requirements imposed by the provider have been met.
The Statement of Activities demonstrates the degree to which the direct expenses of a given
function or segment is offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or segment. Program revenues include 1) charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or
privileges provided by a given function or segment and 2) grants and contributions that are
restricted to meeting the operational or capital requirements of a particular function or
segment. Other items not properly included among program revenues are reported instead as
general revenues. Under the terms of grant agreements, South Cook Intermediate Service
Center No. 4 funds certain programs by a combination of specific cost-reimbursement grants
and general revenues. Thus, when program expenses are incurred, there are both restricted and
unrestricted funding resources available to finance the program. It is the policy of South Cook
Intermediate Service Center No. 4 to first apply restricted fund balances, then unrestricted. For
unrestricted fund balances, committed fund balances are used first, then assigned fund
balances , then unassigned , if any.
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SOUTH COOK INTERMEDIATE SERVICE CENTER NO. 4
Notes to Basic Financial Statements
June 30, 2011
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
The Statement of Net Assets presents information on all of South Cook Intermediate Service
Center No. 4’s assets and liabilities, with the difference between the two reported as net assets.
Over time, increases or decreases in net assets may serve as a useful indicator of whether the
financial position of South Cook Intermediate Service Center No. 4 is improving or
deteriorating. The net assets of the Intermediate Service Center are classified as follows:
Invested in Capital Assets – represents the Intermediate Service Center’s total
investment in capital assets. There is no outstanding debt related to these assets.
Unrestricted Net Assets – represent s resources used for transactions relating to the
general operations of the Intermediate Service Center and may be used at the discretion
of management to meet expenses for any purpose.
Restricted Net Assets – Consists of net assets with constraints placed on their use either
by 1) external groups such as creditors, grantors, contributors, or laws or regulations of
other governments or 2) law through constitutional provisions or enabling legislation.
Separate financial statements are provided for governmental funds. Major individual
governmental funds are reported as separate columns in the fund financial statements.
C. Measurement Focus, Basis of Accounting and Basis of Presentation:
The accounts of South Cook Intermediate Service Center No. 4 are organized and operated on
the basis of funds. A fund is an independent fiscal and accounting entity with a self-balancing
set of accounts. Fund accounting segregates funds according to their intended purpose and is
used to aid management in demonstrating compliance with finance-related legal and
contractual provisions. The minimum number of funds is maintained consistent with legal and
managerial requirements.
Governmental funds are used to account for general governmental activities. The
governmental fund uses the flow of current financial resources measurement focus and the
modified accrual basis of accounting, in accordance with accounting principles generally
accepted in the United States of America. Under the modified accrual basis of accounting,
revenues are recognized when susceptible to accrual (i.e. when they are “measurable and
available”). “Measurable” means that the amount of the transaction can be determined and
“available” means collectible within the current period or soon enough thereafter to be used to
pay liabilities of the current period. Revenues received more than 60 days after the end of the
current period are deferred in the governmental fund financial statements but are recognized as
current revenues in the government wide financial statements. Expenditures are recognized in
the accounting period in which the fund liability is incurred, if measurable, except
expenditures for prepaid expenses, and other long-term obligations, which are recognized
when paid.
State and federal aid and interest on investments are susceptible to accrual. Other receipts
become measurable and available when cash is received and are recognized as revenue at that
time.
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SOUTH COOK INTERMEDIATE SERVICE CENTER NO. 4
Notes to Basic Financial Statements
June 30, 2011
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
C. Measurement Focus, Basis of Accounting and Basis of Presentation (continued):
Governmental funds are those which most governmental functions typically are reported.
Governmental fund reporting focuses on the sources, uses, and balances of current financial
resources . Expendable assets are assigned to the various governmental funds according to the
purpose for which they may or must be used. Current liabilities are assigned to the fund from
which they will be paid. The difference between governmental fund assets and liabilities is
reported as fund balance.
As prescribed by GASB Statement No. 34, governmental fund reporting focuses on the major
funds, rather than on the fund type. There is a two-step process for determining if a fund
should be reported as a major fund: 1) total assets, liabilities, revenues, or
expenditures/expenses (excluding extraordinary items) of an individual fund are at least 10%
of the corresponding total for the fund type, and 2) total assets, liabilities, revenues, or
expenditur e/expenses (excluding extraordinary items) of an individual fund are at least 5% of
the corresponding total for the total of all governmental and proprietary funds combined.
Funds that do not meet the major fund determination requirements are reported in aggregate as
nonmajor funds. South Cook Intermediate Service Center No. 4 has presented all major funds
that met the above qualifications.
South Cook Intermediate Service Center No. 4 reports the following major governmental
funds:
The Education Fund is used to account for and report the proceeds of specific revenue sources
that are restricted by grant agreements or contracts to expenditures for specified purposes
supporting education enhancement programs.
The following programs are included in the Education Fund:
Title I – Reading First Part B SEA Funds: Funding which provides reading support to
teachers in schools that are having academic difficulty and that have a high incidence of
low income students. Reading First regions are identified by ISBE and funding goes to
those agencies identified by the State.
Title I – School Improvement and Accountability: This program provides direct technical
assistance to schools and districts in academic status. The program provides funds to put
school support teams (educational advisors) in each school in academic trouble.
Title I Grant to Local Educational Agencies, Recovery Act: Funds are used to help local
educational agencies (LEAs) and schools improve the teaching and learning of children
failing, or most at-risk of failing, to meet challenging State academic achievement
standards.
Education Jobs Fund: The objective of this program is to assist local educational agencies
(LEAs) in saving or creating education jobs for school year 2010-2011.
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SOUTH COOK INTERMEDIATE SERVICE CENTER NO. 4
Notes to Basic Financial Statements
June 30, 2011
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
C. Measurement Focus, Basis of Accounting and Basis of Presentation (continued):
I.S.C. Operations: Program monies for Center administrative operations. Funding is used
to keep offices open in order to provide professional development to teachers in the area.
Teacher & Administrators Mentoring Program: Designed to provide professional
development for novice teachers and designed specifically for the needs of beginning
teachers.
Early Childhood Monitoring: Provides for grants to establish programs that offer
coordinated services to at-risk infants, toddlers, and their families.
Gifted Education: Accounts for grant monies received for, and payments of, expenditures
incurred to provide professional learning opportunities in the area of gifted education.
South Cook Math Initiative: A partnership among 22 south Cook County districts to
improve the teaching and learning of mathematics in grades six through nine.
Youth Service of America: Educates youth, teachers, community organizations, media, and
public officials in the power of youth as problem solvers. In addition, engages children and
youth as volunteers, as academic achievers, and as community leaders.
Illinois New Principal Mentoring Program: Provides new principals with the individualized
mentoring support they need to successfully transition into effective educational leaders.
Response to Intervention : Contributes to the improvement of instruction for students with
disabilities and to the prevention of inappropriate identification of specific learning
disabilities.
The General Fund is the operating fund of South Cook Intermediate Service Center No. 4. It is
used to account for all financial resources within the territorial boundaries of the Center,
except those required to be accounted and reported for in another fund. General Funds include
the following:
Regional Safe Schools Program: Alternative program created through State legislation for
students in grades 6 through 12 that have multiple suspensions or that have been expelled
from their district. Eligible students are administratively transferred from their district into
this program.
Regional Safe Schools – General State Aid: This program is for students placed in
Regional Safe Schools. Districts give up their General State Aid claim for the students
while placed in the Regional Safe Schools program.
Local Services: These are revenues and expenditures associated with workshops conducted
by South Cook Intermediate Service Center No. 4.
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SOUTH COOK INTERMEDIATE SERVICE CENTER NO. 4
Notes to Basic Financial Statements
June 30, 2011
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued )
C. Measurement Focus, Basis of Accounting and Basis of Presentation (concluded):
Nonmajor Special Revenue Funds are used to account for and report the proceeds of specific
revenue sources (other than fiduciary or major capital projects) that are restricted to
expenditures for specified purposes. This fund includes the following:
Institute: This fund accounts for fees collected for the registration and renewal of teaching
certificates. These fees are used to defray administrative expenses incidental to teachers’
institutes, workshops, or meetings of a professional nature that are designed to promote the
professional growth of teachers or to defray the expense of any general or special meeting
of teachers or school personnel. All funds generated remain restricted until expended only
on the aforementioned activities.
Fund balance is the difference between assets and liabilities in a Governmental Fund. The
following types of fund balances may be presented in the Governmental Funds Combining
Schedule of Accounts:
Nonspendable Fund Balance – the portion of a Governmental Fund’s net assets that are not
available to be spent, either short term or long term, in either form or through legal
restrictions. There are no accounts presenting a nonspendable fund balance.
Restricted Fund Balance – the portion of a Governmental Fund’s net assets that are subject to
external enforceable legal restrictions. The following account fund balances are restricted by
grant agreements or contracts: Regional Safe Schools, Teacher Certification, South Cook
Math Initiative, Illinois New Principal Mentoring Program, Teacher & Administrators
Mentoring Program, Youth Service of America, ROE/ISC Operations, Early Childhood
Mentoring, Gifted Education, Title I – Grant to Local Educational Agencies, Recovery Act,
Education Jobs Fund, Title I - School Improvement and Accountability and Title I - Reading
First Part B SEA Funds. The following funds are restricted by Illinois Statute: Institute.
Committed Fund Balance – the portion of a Governmental Fund’s net assets with self-imposed
constraints or limitations that have been placed at the highest level of decision making. There
are no accounts presenting a committed fund balance.
Assigned Fund Balance – the portion of a Governmental Fund’s net assets to denote an
intended use of resources. The accounts presented with assigned fund balances are specified
for a particular purpose by the Executive Director. The following accounts comprised the
assigned fund balance: Tuition monies for teachers and administrator workshops.
Unassigned Fund Balance – available expendable financial resources in a governmental fund
that are not designated for a specific purpose. The unassigned fund is made up of the General
Operations account.
D. Assets, Liabilities and Equity:
Deposits and Investments
Cash and investments are in the custody of the Bloom Township School Treasurer, except for
petty cash and imprest funds which are in the custody of South Cook Intermediate Service
Center No. 4.
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SOUTH COOK INTERMEDIATE SERVICE CENTER NO. 4
Notes to Basic Financial Statements
June 30, 2011
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
D. Assets, Liabilities and Equity (continued):
The Treasurer maintains one bank account, records transactions of the general, education, and
nonmajor special revenue funds and invests any excess cash. These investments are made in
the name of the Treasurer. The Treasurer also, at times, pools the funds with other districts
under his control. A portion of the pool is reported on the combined balance sheet as “Equity
in Pooled Cash and Investments”.
The Illinois statutes authorize the Treasurer, on South Cook Intermediate Service Center No.
4’s behalf, to invest in U.S. Government, State of Illinois and municipal securities; certificates
of deposit or time savings deposits insured by the FDIC; mortgage notes, bonds or debentures
issued by the Federal Housing Administration; bonds and other obligations of the Federal
National Mortgage Association; and certain short-term obligations of U.S. corporations.
In the selection of the authorized investment vehicles, deposits in any one financial institution
shall not exceed 75% of the capital surplus/net worth of the institution as required by the
School Code. Investments are stated at fair value.
Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are
recorded as prepaid items.
Capital Assets
Capital assets used in governmental fund types are recorded in the government-wide financial
statements at cost or estimated historical cost if purchased or constructed. South Cook
Intermediate Service Center No. 4’s threshold for capitalizing fixed assets are those with a
cost of $5,000 or more. Donated fixed assets are recorded at their estimated fair value at the
date of donation. The cost of normal maintenance and repairs that do not add to the value of
the asset or materially extend asset lives are not capitalized.
All capital assets are being depreciated using the straight-line method over the following
useful life:
Furniture & Equipment 5 - 15 years
Buildings 40 years
Capital assets in the governmental fund financial statements are reported as expenditures when
incurred.
Long-Term Obligations
Long-term debt of the governmental fund is reported at face value in the government-wide
financial statements.
Estimates
Management uses estimates and assumptions in preparing financial statements. Those
estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure
of contingent assets and liabilities, and the reported revenues and expenditures. Actual results
could differ from those estimates.
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SOUTH COOK INTERMEDIATE SERVICE CENTER NO. 4
Notes to Basic Financial Statements
June 30, 2011
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (concluded)
D. Assets, Liabilities and Equity (concluded):
Reclassifications
Certain fund balance classifications in the 2010 financial statements have been reclassified to
conform to the 2011 presentation with no effect on previously reported changes in net assets.
2. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A. Budgetary Information:
Although the operating budget was reviewed, South Cook Intermediate Service Center No. 4
did not formally adopt a budget for the year ended June 30, 2011 and is not legally required to
do so.
However, the Illinois State Board of Education requires budgets for certain State and Federal
programs. These budgets were used to prepare the Budgetary Comparison Schedule of the
Education, General, and Nonmajor Special Revenue Funds.
The budget is prepared on the modified accrual basis of accounting for the governmental fund
type which is an acceptable method as prescribed by the Illinois Compiled Statutes and is the
same basis that is used for financial reporting. This allows for comparability between budget
and actual amounts.
Federal grants administered that have budgets are as follows: Title I – School Improvement
and Accountability, Title I – Reading First Part B SEA Funds, Title I – Grant to Local
Educational Agencies, Recovery Act and Education Jobs Fund.
State grants administered that have budgets are as follows: I.S.C. Operations, Teachers &
Administrators Mentoring Program, Gifted Grant, Early Childhood Mentoring, Regional Safe
Schools – General State Aid, Regional Safe Schools and Illinois New Principal Mentoring
Program. Local sources administered that have budgets are as follows: Youth Service of
America and South Cook Math Initiative.
Budget appropriations lapse at the end of each fiscal year. South Cook Intermediate Service
Center No. 4 does not utilize an encumbrance system. These procedures are followed in
establishing the budgetary data reflected in the financial statements.
The Executive Director submits to the Governing Board a proposed operating budget for
the fiscal year commencing July 1. The operating budget includes proposed expenditures
and the means of financing them.
Prior to October 1, the budget is reviewed through the passage of a resolution.
The Executive Director is authorized to transfer up to 10% of the total budget between
various items within the fund; however, any revisions that alter the total expenditures of
the general fund must be approved by the Governing Board.
Formal Budgetary integration is employed as a management control device during the
year.
The Governing Board may amend the budget (in other ways) by the same procedures
required of its original budget.
The reported budgetary data represents the original budget as reviewed.
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SOUTH COOK INTERMEDIATE SERVICE CENTER NO. 4
Notes to Basic Financial Statements
June 30, 2011
3. CASH AND INVESTMENTS
Cash balances are at several financial institutions. All bank balances as of June 30, 2011 are
entirely insured by the Federal Deposit Insurance Corporation.
June 30, 2011, investment balances consisted of the following:
Carrying Value/
Fair Value Cost
Petty Cash $ 200 $ 200
Cash Deposits 99,420 99,420
Investments not subject to categorization:
Equity in pooled cash and investments of
the Bloom Township School Treasurer 6 , 6 1 8 , 9 8 6 6,618,986
$ 6,718,606 $6,718,606
Credit Risk. Credit risk is the risk of loss due to the failure of the security issuer or backer.
The Trustees of Schools will minimize credit risk by:
Limiting investments to the safest types of securities/financial instruments;
Pre-qualifying the financial institutions, broker/dealers, intermediaries, and advisers with
which the Trustees of Schools will do business; and
Diversifying the investment portfolio so that potential losses on individual securities will
be minimized.
As of June 30, 2011, the credit ratings by Moody’s or Standard and Poor’s were A, AA, and
AAA which are all average credit quality.
Interest Rate Risk. The Trustees of Schools will minimize the risk that the market value of
securities in the portfolio will fall due to changes in general interest rates, by:
Structuring the investment portfolio so that a significant portion of the securities either
meet cash requirements for ongoing operations or have active secondary or resale markets;
and
Investment operating funds primarily in shorter-term securities, money market mutual
funds, or similar investment pools.
4. ACCOUNTS RECEIVABLE
Accounts receivable at June 30, 2011 consisted of the following:
Title I – Grant to Education Agencies,
Recovery Act $ 181,438
Education Jobs Fund 38,379
Regional Safe Schools 3 5 6 ,4 9 5
ROE/ISC Operations 1 62 , 4 9 6
Intermed iate Service Center No. 2 44,104
Teacher & Administrator Mentoring Program 32,202
$ 815,114
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SOUTH COOK INTERMEDIATE SERVICE CENTER NO. 4
Notes to Basic Financial Statements
June 30, 2011
5. CAPITAL ASSETS
The governmental activities capital assets activity for the year ended June 30, 2011 is as
follows:
Balance Balance
July 1, 2010 Additions Deletions June 30, 2011
Cost:
Equipment $1,886,894 $ 28,234 $ 17,032 $ 1,898,096
Buildings 4,011,535 86,760 -0- 4,098,295
$5,898,429 $ 114,994 $ 17,032 $ 5,996,391
Accumulated
Depreciation:
Equipment $1,344,699 $ 141,330 $ 16,263 $ 1,469,766
Buildings 953,473 101,041 -0- 1,054,514
$2,298,172 $ 242,371 $ 16,263 $ 2,524,280
Total Capital
Assets, Net
Equipment $ 542,195 $ (113,096) $ 7 69 $ 428,330
Buildings 3,058,062 ( 14,281) -0- 3,043,781
$3,600,257 $ (127,377) $ 769 $ 3,472,111
Depreciation expense was charged to governmental functions as follows:
Support Services $ 242,371
6. DEFERRED REVENUE
Deferred revenue is recognized in programs where program monies have been received but not
yet spent. The following programs recognized deferred revenue at June 30, 2011:
Title I – School Improvement & Accountability $ 1,235,483
7. OTHER INFORMATION
A. Risk Management:
South Cook Intermediate Service Center No. 4 is exposed to various risks of loss related to
torts; thefts of, damage to and destruction of assets; errors and omissions; and workers’
compensation for which commercial insurance is carried. The amount of coverage has not
decreased nor have the amount of settlements exceeded coverage in the current year or any of
the past three years.
B. Employee Retirement Systems and Plans:
Teachers’ Retirement System of the State of Illinois
South Cook Intermediate Service Center No. 4 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.
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SOUTH COOK INTERMEDIATE SERVICE CENTER NO. 4
Notes to Basic Financial Statements
June 30, 2011
7. OTHER INFORMATION (continued)
B. Employee Retirement Systems and Plans (continued):
Teachers’ Retirement System of the State of Illinois (continued)
The Illinois Pension Code outlines the benefit provisions of TRS, and amendments to the plan
can be made only by legislative action with the Governor’s approval. The State of Illinois
maintains primary responsibility for the funding of the plan, but contributions from
participating employers and members are also required. The TRS Board of Trustees is
responsible for the System’s administration.
TRS members include all active nonannuitants who are employed by a TRS-covered employer
to provide services for which teacher certification is required. The active member contribution
rate for the year ended June 30, 2011 was 9.4 percent of creditable earnings. The same
contribution rate applies to members whose first contributing service is on or after January 1,
2011, the effective date of the benefit changes contained in Public Act 96-0889.
These contributions, which may be paid on behalf of employees by the employer, are
submitted to TRS by the employer. The active member contribution rate was also 9.4 percent
for the years ended June 30, 2010 and 2009.
The State of Illinois makes contributions directly to TRS on behalf of South Cook Intermediate
Service Center No. 4’s TRS covered employees.
On-behalf contributions. The State of Illinois makes employer pension contributions on
behalf of South Cook Intermediate Service Center No. 4. For the year ended June 30,
2011, State of Illinois contributions were based on 23.10 percent of creditable earnings not
paid from federal funds, and the Center recognized revenue and expenditures of $360,266
in pension contributions that the State of Illinois paid directly to TRS.
For the years ended June 30, 2010 and June 30, 2009, the State of Illinois contribution rates
as percentages of creditable earnings not paid from federal funds were 23.38 percent
($349,926 ) and 17.08 percent ($245,998 ), respectively.
South Cook Intermediate Service Center No. 4 makes other types of employer contributions
directly to TRS.
2.2 formula contributions . Employers contribute 0.58 percent of total creditable earnings
for the 2.2 formula change. This rate is specified by statute. Contributions for the year
ended June 30, 2011 were $9,046. Contributions for the years ending June 30, 2010, and
June 30, 2009, were $8,681 and $8,354, respectively.
Federal and special trust fund contributions. When TRS members are paid from federal
and special trust funds administered by South Cook Intermediate Service Center No. 4,
there is a statutory requirement for the Center to pay an employer pension contribution
from those funds. Under a policy adopted by the TRS Board of Trustees that was first
effective in the fiscal year ended June 30, 2006, employer contributions for employees
paid from federal and special trust funds will be the same as the State contribution rate to
TRS.
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SOUTH COOK INTERMEDIATE SERVICE CENTER NO. 4
Notes to Basic Financial Statements
June 30, 2011
7. OTHER INFORMATION (continued)
B. Employee Retirement Systems and Plans (continued):
Teachers’ Retirement System of the State of Illinois (continued )
For the year ended June 30, 2011, the employer pension contribution was 23.10 percent
of salaries paid from federal and special trust funds. For the years ended June 30, 2010
and June 30, 2009, the employer contributions were 23.38 percent and 17.08 percent of
salaries paid from federal and special trust funds, respectively.
For the year ended June 30, 2011, salaries totaling $146,603 were paid from federal and
special trust funds that required employer contributions of $33,865. For the years ended
June 30, 2010 and June 30, 2009, required contributions were $32,893 and $23,124,
respectively.
Early Retirement Option. South Cook Intermediate Service Center No. 4 is also required
to make one-time employer contributions to TRS for members retiring under the Early
Retirement Option (ERO). The payments vary depending on the age and salary of the
member.
The maximum employer ERO contribution is 117.5 percent and applies when the
member is age 55 at retirement.
For the year ended June 30, 2011, the Center paid $-0- to TRS for employer contributions
under the ERO program. For the years ended June 30, 2010 and June 30, 2009, the
Center paid $-0- in employer ERO contributions.
Salary increases over 6 percent and excess sick leave.
If an employer grants salary increases over 6 percent and those salaries are used to
calculate a retiree’s final average salary, the employer makes a contribution to TRS.
The contribution will cover the difference in actuarial cost of the benefit based on
actual salary increases and the benefit based on salary increases of up to 6 percent.
For the year ended June 30, 2011, the Center paid $-0- to TRS for employer
contributions due on salary increases in excess of 6 percent. For the years ended June
30, 2010 and June 30, 2009, the Center paid $-0- to TRS for employer contributions
due on salary increases in excess of 6 percent, respectively.
If an employer grants sick leave days in excess of the normal annual allotment and
those days are used as TRS service credit, the employer makes a contribution to TRS.
The contribution is based on the number of excess sick leave days used as service
credit, the highest salary used to calculate final average salary, and the TRS total
normal cost rate (18.03 percent of salary during the year ended June 30, 2011, as
recertif ied pursuant to Public Act 96-1511).
For the year ended June 30, 2011, the Center paid $-0- to TRS for sick leave days
granted in excess of the normal annual allotment. For the years ended June 30, 2010
and June 30, 2009, the Center paid $-0- in employer contributions granted for sick
leave days, respectively.
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SOUTH COOK INTERMEDIATE SERVICE CENTER NO. 4
Notes to Basic Financial Statements
June 30, 2011
7. OTHER INFORMATION (continued)
B. Employee Retirement Systems and Plans (continued):
Teachers’ Retirement System of the State of Illinois (concluded)
TRS financial information, an explanation of TRS benefits, and descriptions of member,
employer and state funding requirements can be found in the TRS Comprehensive Annual
Financial Report for the year ended June 30, 2010. The report for the year ended June 30,
2011, is expected to be available in late 2011. The reports may be obtained by writing to the
Teachers’ Retirement System of the State of Illinois, 2815 West Washington Street, P.O. Box
19253, Springfield, Illinois 62794-9253. The most current report is also available on the TRS
Web site at http://trs.illinois.gov .
Illinois Municipal Retirement Fund
Plan Description
South Cook Intermediate Service Center No. 4’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 plan is affiliated with the Illinois Municipal
Retirement Fund (IMRF), an agent multiple-employer plan. Benefit provisions are established
by statute and may only be changed by the General Assembly of the State of Illinois.
IMRF issues a publicly available financial report that includes financial statements and
required supplementary information. That report may be obtained on-line at www.imrf.org .
Funding Policy
As set by statute, South Cook Intermediate Service Center No. 4’s regular plan members are
required to contribute 4.50 percent 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 employer annual required contribution rate
for calendar year 2010 was 10.41 percent . South Cook Intermediate Service Center No. 4 also
contributes for disability benefits, death benefits and supplemental retirement benefits, all of
which are pooled at the IMRF level. Contribution rates for disability and death benefits are set
by the IMRF Board of Trustees, while the supplemental retirement benefits rate is set by
statute.
Annual Pension Cost
The required contribution for calendar year 2010 was $94,316.
Three-Year Trend Information for the Regular Plan
Actuarial
Valuation Date
Annual Pension
Cost (APC)
Percenta ge of
APC Contributed
Net Pension
Obligation
12/31/10 $ 94,316 100% $0
12/31/09 $ 96,385 100% $0
12/31/08 $ 95,418 100% $0
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SOUTH COOK INTERMEDIATE SERVICE CENTER NO. 4
Notes to Basic Financial Statements
June 30, 2011
7. OTHER INFORMATION (continued)
B. Employee Retirement Systems and Plans (concluded):
Illinois Municipal Retirement Fund (concluded)
The required contribution for 2010 was determined as part of the December 31, 2008 actuarial
valuation using the entry age normal actuarial cost method. The actuarial assumptions at
December 31, 2008, included (a) 7.5 percent investment rate of return (net of administrative
and direct investment expenses), (b) projected salary increases of 4% a year, attributable to
inflation, (c) additional projected salary increases ranging from 0.4% to 10% per year
depending on age and service, attributable to seniority/merit, and (d) post-retirement benefit
increases of 3% annually. The actuarial value of South Cook Intermediate Service Center No.
4’s regular plan assets was determined using techniques that spread the effects of short-term
volatility in the market value of investments over a five-year period with a 20% corridor
between the actuarial and market value of assets. South Cook Intermediate Service Center No.
4’s regular plan’s unfunded actuarial accrued liability at December 31, 2008 is being
amortized as a level percentage of projected payroll on an open 10 year basis.
Funded Status and Funding Progress
As of December 31, 2010, the most recent actuarial valuation date, the Regular plan was 76.94
percent funded. The actuarial accrued liability for benefits was $1,295,011 and the actuarial
value of assets was $996,388, resulting in an underfunded accrued liability (UAAL) of
$298,623 . The covered payroll for calendar year 2010 (annual payroll of active employees
covered by the plan) was $906,011 and the ratio of the UAAL to the covered payroll was 33
percent.
The schedule of funding progress, presented as RSI following the notes to the financial
statements, presents multiyear trend information about whether the actuarial value of the plan
assets is increasing or decreasing over time relative to the actuarial accrued liability for
benefits.
C. Postemployment Benefits other than Pensions:
Plan Description and Actuarial Valuation
In addition to providing the pension benefits described, South Cook Intermediate Service
Center No. 4 provides postemployment health care benefits (OPEB) for retired employees
through a single employer defined benefit plan. The benefits, benefit levels, employee
contributions and employer contributions are governed by the Intermediate Service Center No.
4 and can be amended by board approval. The plan is not accounted for as a trust fund, as an
irrevocable trust has not been established to account for the plan. The plan does not issue a
separate report.
For financial statement purposes, an actuarial valuation is required at least biennially for OPEB
plans with a total membership (including employees in active service, terminated employees
who have accumulated benefits but are not yet receiving them, and retired employees and
beneficiaries currently receiving benefits) of 200 or more, or at least triennially for plans with a
total membership of fewer than 200. As a result of these requirements, South Cook
Intermediate Service Center No. 4 was not required to have an actuarial valuation for the year
ended June 30, 2011. July 1, 2009 was the most recent actuarial valuation of South Cook
Intermediate Service Center No. 4’s plan. The results of this latest actuarial valuation are
described below.
-39-
SOUTH COOK INTERMEDIATE SERVICE CENTER NO. 4
Notes to Basic Financial Statements
June 30, 2011
7. OTHER INFORMATION (continued)
C. Postemployment Benefits other than Pensions (continued):
Benefits Provided
The Intermediate Service Center No. 4 provides continued health insurance coverage at the
blended employer rate to all eligible retirees in accordance with Illinois Compiled Statutes,
which creates an implicit subsidy of retiree health insurance.
To be eligible for benefits, an employee must qualify for retirement under the Intermediate
Service Center No. 4 retirement plan. Upon a retiree reaching age 65 years of age, Medicare
becomes the primary insurer and the retiree is no longer eligible to participate in the plan, but
can purchase a Medicare supplement plan from the Intermediate Service Center No. 4
insurance provider.
Membership
At June 30, 2010 membership consisted of:
Retirees and Beneficiaries Currently Receiving Benefits -
Terminated Employees Entitled
to Benefits but not yet Receiving Them -
Active Vested Employees 10
Active Nonvested Employees 28
TOTAL 38
Participating Employers 1
Funding Policy
The Intermediate Service Center No. 4 is not required to and currently does not advance fund
the cost of benefits that will become due and payable in the future. Active employees do not
contribute to the plan until retirement.
The Intermediate Service Center No. 4 had an actuarial valuation performed for the plan as of
July 1, 2009 to determine the funded status of the plan as of that date as well as the employer’s
annual required contribution (ARC) for the fiscal year ended June 30, 2010.
Annual OPEB Costs and Net OPEB Obligation
The Intermediate Service Center No. 4’s annual OPEB cost (expense) of $8,043 was equal to
the ARC for the fiscal year, as the transition liability was set at zero as of July 1, 2009. The
Intermediate Service Center No. 4’s annual OPEB cost, the percentage of annual OPEB cost
contributed to the plan and the net OPEB obligation for fiscal year 2010 was as follows
(information for the two preceding years before fiscal year 2010 is not available as an actuarial
valuation was performed for the first time as of July 1, 2009):
-40-
SOUTH COOK INTERMEDIATE SERVICE CENTER NO. 4
Notes to Basic Financial Statements
June 30, 2011
7. OTHER INFORMATION (continued)
C. Postemployment Benefits other than Pensions (continued):
Fiscal
Year
Ended
Annual
OPEB
Cost
Employer
Contributions
Percentage of
Annual OPEB
Cost
Contributed
Net OPEB
Obligation
June 30, 2010 $ 8,043 $ - 0% $ 8,043
The net OPEB obligation as of July 1, 2009, was calculated as follows:
Annual Required Contribution $ 8,043
Interest on Net OPEB Obligation -
Adjustment to Annual Required Contribution -
Annual OPEB Cost 8,043
Contributions Made -
Increase (decrease) in Net OPEB Obligation 8,043
Net OPEB Obligation Beginning of Year -
NET OPEB OBLIGATION END OF YEAR $ 8,043
Funded Status and Funding Progress. The funded status of the plan as of July 1, 2009, was as
follows:
Actuarial Accrued Liability (AAL) $ 59,133
Actuarial Value of Plan Assets -
Unfunded Actuarial Accrued Liability (UAAL) 59,133
Funded Ratio (Actuarial Value of Plan Assets/AAL) 0.0%
Covered Payroll (Active Plan Members) $ N/A
UAAL as a Percentage of Covered Payroll 0.0%
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples
include assumptions about future employment, mortality and the healthcare cost trend.
Amounts determined regarding the funded status of the plan and the annual required
contributions of the employer are subject to continual revision as actual results are compared
with past expectations and new estimates are made about the future.
The schedule of funding progress, presented as required supplementary information following
the notes to the financial statements, presents multi-year trend information that shows whether
the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial
accrued liabilities for benefits.
Actuarial Methods and Assumptions - Projections of benefits for financial reporting purposes
are based on the substantive plan (the plan as understood by the employer and plan members)
and include the types of benefits provided at the time of each valuation and the historical
pattern of sharing of benefit costs between the employer and plan members to that point.
-41-
SOUTH COOK INTERMEDIATE SERVICE CENTER NO. 4
Notes to Basic Financial Statements
June 30, 2011
7. OTHER INFORMATION (continued)
C. Postemployment Benefits other than Pensions (continued):
The actuarial methods and assumptions used include techniques that are designed to reduce
short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent
with the long-term perspective of the calculations.
In the July 1, 2009, actuarial valuation, the entry age method was used. The actuarial
assumptions included a discount rate of 5.00% and an initial healthcare cost trend rate of
8.00% with a 6.00% increase for later years. Both rates include a 3.00% inflation assumption.
The actuarial value of assets was not determined as the Intermediate Service Center No. 4 has
not advance funded its obligation. The plan’s unfunded actuarial accrued liability is being
amortized using an open, level percentage of pay method. The remaining amortization period
at July 1, 2009 was 30 years.
Teacher Health Insurance Security Fund
South Cook Intermediate Service Center No. 4 participates in the Teacher Health Insurance
Security (THIS) Fund, a cost-sharing, multi-employer defined benefit postemployment
healthcare plan that was established by the Illinois legislature for the benefit of Illinois public
school teachers employed outside the city of Chicago. The THIS Fund provides medical,
prescription, and behavioral health benefits, but does not provide vision, dental, or life
insurance benefits to annuitants of the Teachers’ Retirement System (TRS). Annuitants may
participate in the state administered participating provider option plan or choose from several
managed care options.
The State Employees Group Insurance Act of 1971 (5 ILCS 375) outlines the benefit
provisions of THIS Fund and amendments to the plan can be made only by legislative action
with the Governor’s approval. The Illinois Department of Healthcare and Family Services
(HFS) and the Illinois Department of Central Management Services (CMS) administer the
plan with the cooperation of TRS. The director of HFS determines the rates and premiums for
annuitants and dependent beneficiaries and establishes the cost-sharing parameters. Section
6.6 of the State Employees Group Insurance Act of 1971 requires all active contributors to the
TRS who are not employees of the state make contributions to THIS Fund.
The percentage of employer required contributions in the future will be determined by the
director of HFS and will not exceed 105 percent of the percentage of salary actually required
to be paid in the previous fiscal year.
On behalf contributions to THIS Fund
The State of Illinois makes employer retiree health insurance contributions on behalf of South
Cook Intermediate Service Center No. 4. State contributions are intended to match
contributions to THIS Fund from active members which were 0.88 percent of pay during the
year ended June 30, 2011. State of Illinois contributions were $13,724 , and South Cook
Intermediate Service Center No. 4 recognized revenue and expenditures of this amount during
the year.
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SOUTH COOK INTERMEDIATE SERVICE CENTER NO. 4
Notes to Basic Financial Statements
June 30, 2011
7. OTHER INFORMATION (continued)
C. Postemployment Benefits other than Pensions (concluded):
State contributions intended to match active member contributions during the years ended
June 30, 2010 and June 30, 2009 were 0.84 percent of pay. State contribution s on behalf of
South Cook Intermediate Service Center No. 4’s employees were $12,572 and $12,098,
respectively.
Employer Contributions to THIS Fund
South Cook Intermediate Service Center No. 4 also makes contributions to THIS Fund. The
Center THIS Fund contribution was 0.66 percent during the year ended June 30, 2011, and
0.63 percent during the years ended June 30, 2010, and June 30, 2009. For the year ended June
30, 2011, South Cook Intermediate Service Center No. 4 paid $10,293 to the THIS Fund. For
the years ended June 30, 2010 and June 30, 2009, the Center paid $9,429 and $9,074 to the
THIS Fund, respectively, which was 100 percent of the required contribution.
Further information on THIS Fund
The publicly available financial report of the THIS Fund may be obtained by writing to the
Department of Healthcare and Family Services, 201 S. Grand Ave., Springfield, IL 62763-
3838.
8. ON-BEHALF CONTRIBUTIONS
The State of Illinois paid the following retirement and other postemployment benefits on-behalf
of South Cook Intermediate Service Center No. 4:
TRS Pension Contribution $ 360,266
Teachers’ Health Insurance Security 13,724
$ 373,990
These amounts have been recorded in the accompanying financial statements as State
revenue and expenditures.
9. NEW ACCOUNTING PRONOUNCEMENTS
In 2011, South Cook Intermediate Service Center No. 4 implemented Governmental
Accounting Standard Board (GASB) Statement No. 54, Fund Balance Reporting and
Governmental Fund Type Definitions, GASB Statement No. 59, Financial Instruments
Omnibus, and GASB Statement No. 62, Codification of Accounting and Financial Reporting
Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements. South
Cook Intermediate Service Center No. 4 implemented these standards during the current year;
however GASB Statements No. 59 and 62 had no impact on the financial statements. The
implementation of GASB Statement No. 54 changed fund balance reporting for governmental
funds by adding some additional fund balance classifications, clarifying governmental fund
type definitions, and providing additional disclosures on how fund balance constraints are
imposed and may be modified or eliminated.
-43-
SOUTH COOK INTERMEDIATE SERVICE CENTER NO. 4
Notes to Basic Financial Statements
June 30, 2011
10. SUBSEQUENT EVENTS
Management has evaluated subsequent events through March 9, 2012, the date on which the
financial statements were available to be issued.
-44-
REQUIRED SUPPLEMENTARY INFORMATION
(Other than Management’s Discussion and Analysis)
SOUTH COOK INTERMEDIATE SERVICE CENTER NO. 4
Illinois Municipal Retirement Fund – Schedule of Funding Progress
(Unaudited)
June 30, 2011
Actuarial
Valuation
Date
Actuarial
Value of
Assets
(a)
Actuarial
Accrued
Liabilit y
-Entry Age
(AAL)
(b)
Unfunded
AAL
(UAAL)
(b-a)
Funded
Ratio
(a/b)
Covered
Payroll
(c)
UAAL as a
Percentage
of Covered
Payroll
((b-a)/c)
12/31/10
12/31/09
12/31/08
$996,388
1,015,859
887,385
$1,295,011
1,277,461
1,054,459
$298,623
261,602
167,074
76.94%
79.52%
84.16%
$906,011
905,873
861,953
32.96%
28.88%
19.38%
On a market value basis, the actuarial value of assets as of December 31, 2010 is $1,061,115. On a
market basis, the funded ratio would be 81.94%.
-45-
SOUTH COOK INTERMEDIATE SERVICE CENTER NO. 4
Post Employment Benefits Other than Pensions – Schedule of Funding Progress
(Unaudited)
June 30, 2011
Actuarial
Valuation
Date
Actuarial
Value of
Assets
(a)
Actuarial
Accrued
Liability
-Entry Age
(AAL)
(b)
Unfunded
AAL
(UAAL)
(b-a)
Funded
Ratio
(a/b)
Covered
Payroll
(c)
UAAL as a
Percentage
of Covered
Payroll
((b-a)/c)
06/30/10 $0 $59,133 $59,133 0.00% N/A 0.00%
-46-
OTHER SUPPLEMENTARY INFORMATION
Variance
Favorable
Budget Actual (Unfavorable)
REVENUES
Local Sources
Services Provided Other LEA's $ 1,292,000 $ 1,010,605 $ (281,395)
Total Local Sources 1,292,000 1,010,605 (281,395)
State Sources
Regional Safe Schools - General State Aid 1,016,981 1,016,981 -0-
Regional Safe Schools Program 594,159 859,996 265,837
Total State Sources 1,611,140 1,876,977 265,837
Total Direct Revenues 2,903,140 2,887,582 (15,558)
On-behalf Payments -0- 373,990 373,990
Total Revenues 2,903,140 3,261,572 358,432
-47-
SOUTH COOK INTERMEDIATE SERVICE CENTER NO. 4
Budgetary Comparison Schedule
General Fund Account
Year Ended June 30, 2011
Variance
Favorable
Budget Actual (Unfavorable)
EXPENDITURES
Instruction
Salaries 977,800 965,415 12,385
Employee Benefits 138,609 128,169 10,440
Purchased Services -0- -0- -0-
Supplies and Materials 4,400 2,958 1,442
Capital Outlay - - -0-
Total Instruction 1,120,809 1,096,542 24,267
Support Services
Instructional Staff
Improvement of Instruction Services
Salaries 145,411 160,615 (15,204)
Employee Benefits 57,298 55,546 1,752
Purchased Services 182,000 175,608 6,392
Supplies and Materials 43,500 41,711 1,789
Capital Outlay 4,500 9,000 (4,500)
Educational Media Services
Supplies and Materials -0- -0- -0-
Total Instructional Staff 432,709 442,480 (9,771)
General Administration
Executive Administration Services
Salaries 232,551 212,332 20,219
Employee Benefits 75,892 91,762 (15,870)
Purchased Services 128,300 160,017 (31,717)
Supplies and Materials 35,000 24,648 10,352
Capital Outlay 50,000 15,796 34,204
Other Objects 4,000 17,350 (13,350)
Office of Principal Services
Salaries 486,880 492,827 (5,947)
Employee Benefits 110,279 112,478 (2,199)
Purchased Services 14,300 28,080 (13,780)
Supplies and Materials -0- 1,742 (1,742)
Total General Administration 1,137,202 1,157,032 (19,830)
-48-
SOUTH COOK INTERMEDIATE SERVICE CENTER NO. 4
Budgetary Comparison Schedule
General Fund Account (Continued)
Year Ended June 30, 2011
Variance
Favorable
Budget Actual (Unfavorable)
EXPENDITURES
Facility Acquisition & Construction Services
Capital Outlay -0- 86,760 (86,760)
Operation and Maintenance of
Plant Services
Salaries 196,300 199,639 (3,339)
Employee Benefits 22,697 24,198 (1,501)
Purchased Services 47,400 174,813 (127,413)
Supplies and Materials 60,906 68,496 (7,590)
Capital Outlay -0- -0- -0-
Pupil Transportation
Purchased Services 13,000 15,558 (2,558)
Food Services
Purchased Services -0- 3,662 (3,662)
Data Processing Services
Salaries 180,261 186,647 (6,386)
Employee Benefits 40,435 40,557 (122)
Purchased Services -0- -0- -0-
Supplies and Materials -0- -0- -0-
Total Business 560,999 800,330 (239,331)
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SOUTH COOK INTERMEDIATE SERVICE CENTER NO. 4
Budgetary Comparison Schedule
General Fund Account (Continued)
Year Ended June 30, 2011
Variance
Favorable
Budget Actual (Unfavorable)
EXPENDITURES
Other Support Services
Employee Benefits -0- -0- -0-
Supplies and Materials -0- -0- -0-
Total Other Support Services -0- -0- -0-
Total Support Services 2,130,910 2,399,842 (268,932)
Nonprogrammed Charges
Other Payments to In-State Government Units
Purchased Services - -0- -0-
Total Direct Expenditures 3,251,719 3,496,384 (244,665)
On-behalf Payments -0- 373,990 (373,990)
Total Expenditures 3,251,719 3,870,374 (618,655)
Excess (Deficiency) of Revenues Over
(Under) Expenditures $ (348,579) (608,802) $ (260,223)
OTHER FINANCING SOURCES/(USES)
Interest $ 121,329
Total other financing sources 121,329
Net change in fund balances (487,473)
Fund Balance, July 1, 2010 6,477,694
Fund Balance, June 30, 2011 $ 5,990,221
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SOUTH COOK INTERMEDIATE SERVICE CENTER NO. 4
Budgetary Comparison Schedule
General Fund Account (Continued)
Year Ended June 30, 2011
Variance
Favorable
Budget Actual (Unfavorable)
REVENUES
Local Sources
Response to Intervention $ -0- $ 26,529 $ 26,529
Youth Service America 5,000 -0- (5,000)
South Cook Math Initiative 210,700 87,387 (123,313)
Total Local Sources 215,700 113,916 (101,784)
State Sources
Illinois New Principal Mentoring 35,000 40,783 5,783
I.S.C. Operations 297,864 369,444 71,580
Early Childhood Monitoring 33,580 42,391 8,811
Teachers & Administrators Mentoring Program 61,029 -0- (61,029)
Gifted Education 303,965 62,423 (241,542)
Total State Sources 731,438 515,041 (216,397)
Federal Sources
Title I Grant to Local Educational Agencies,
Recovery Act 360,000 341,033 (18,967)
Education Jobs Fund 92,596 91,549 (1,047)
Title I - School Improvement and Accountability 2,486,573 1,246,400 (1,240,173)
Title I - Reading First Part B SEA Funds 699,747 401,145 (298,602)
Total Federal Sources 3,638,916 2,080,127 (1,558,789)
Total Direct Revenues 4,586,054 2,709,084 (1,876,970)
On-behalf Payments -0- -0- -0-
Total Revenues 4,586,054 2,709,084 (1,876,970)
Year Ended June 30, 2011
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SOUTH COOK INTERMEDIATE SERVICE CENTER NO. 4
Budgetary Comparison Schedule
Education Fund Account
Variance
Favorable
Budget Actual (Unfavorable)
EXPENDITURES
Instruction
Salaries 4,000 -0- 4,000
Total Instruction 4,000 -0- 4,000
Support Services
Instructional Staff
Improvement of Instruction Services
Salaries 1,222,269 1,220,910 1,359
Employee Benefits 220,587 205,111 15,476
Purchased Services 625,450 789,011 (163,561)
Supplies and Materials 137,665 272,004 (134,339)
Capital Outlay 18,000 24,390 (6,390)
Educational Media Services
Supplies and Materials -0- - -0-
Total Instructional Staff 2,223,971 2,511,426 (287,455)
General Administration
Executive Administration Services
Salaries -0- 3,869 (3,869)
Employee Benefits -0- 1,847 (1,847)
Purchased Services 15,519 21,639 (6,120)
Total General Administration 15,519 27,355 (11,836)
Business
Operation and Maintenance of
Plant Services
Purchased Services 2,893 3,039 (146)
Supplies and Materials 9,925 11,463 (1,538)
Total Business 12,818 14,502 (1,684)
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Year Ended June 30, 2011
SOUTH COOK INTERMEDIATE SERVICE CENTER NO. 4
Budgetary Comparison Schedule
Education Fund Account (Continued)
Variance
Favorable
Budget Actual (Unfavorable)
EXPENDITURES
Other Support Services
Salaries 15,000 15,000 -0-
Employee Benefits -0- -0- -0-
Purchased Services 8,472 66,565 (58,093)
Total Other Support Services 23,472 81,565 (58,093)
Total Support Services 2,275,780 2,634,848 (359,068)
Nonprogrammed Charges
Other Payments to In-State Government Units
Purchased Services 1,313,935 1,014,713 299,222
Total Direct Expenditures 3,593,715 3,649,561 (55,846)
On-behalf Payments -0- -0- -0-
Total Expenditures 3,593,715 3,649,561 (55,846)
Excess (Deficiency) of Revenues Over
(Under) Expenditures $ 992,339 (940,477) $ (1,932,816)
Fund Balance, July 1, 2010 (97,590)
Fund Balance, June 30, 2011 $ (1,038,067)
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SOUTH COOK INTERMEDIATE SERVICE CENTER NO. 4
Budgetary Comparison Schedule
Education Fund Account (Continued)
Year Ended June 30, 2011
Variance
Favorable
Budget Actual (Unfavorable)
REVENUES
Local Sources
Institute $ 220,000 $ 188,814 $ (31,186)
Total Local Sources 220,000 188,814 (31,186)
Total Direct Revenues 220,000 188,814 (31,186)
On-behalf Payments -0- -0- -0-
Total Revenues 220,000 188,814 (31,186)
EXPENDITURES
Support Services
Instructional Staff
Improvement of Instruction Services
Salaries 96,996 48,308 48,688
Employee Benefits 26,482 24,490 1,992
Purchased Services 89,304 22,407 66,897
Supplies and Materials 3,000 5,475 (2,475)
Total Instructional Staff 215,782 100,680 115,102
Total Support Services 215,782 100,680 115,102
Nonprogrammed Charges
Other Payments to In-State Government Units
Other Objects 90,000 53,428 36,572
Total Direct Expenditures 305,782 154,108 151,674
On-behalf Payments -0- -0- -0-
Total Expenditures 305,782 154,108 151,674
Excess (Deficiency) of Revenues Over
(Under) Expenditures $ (85,782) 34,706 $ 120,488
Fund Balance, July 1, 2010 -0-
Fund Balance, June 30, 2011 $ 34,706
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Year Ended June 30, 2011
SOUTH COOK INTERMEDIATE SERVICE CENTER NO. 4
Budgetary Comparison Schedule
Nonmajor Special Revenue Fund
FEDERAL COMPLIANCE SECTION
Federal Grantor/ Federal
Pass-Through Grantor/ CFDA Project
Program Title Number Number 7/01/09 - 06/30/10 7/01/10 - 06/30/11
U.S. Department of Education
Title I - Cluster
Passed-Through Illinois State Board of Education:
ARRA Title I Grants to Local Educational Agencies,
Recovery Act M 84.389 11-4854-00 -0- 341,033
Title I - School Improvement and Accountability M 84.010A 11-4331-SS -0- 1,246,400
Title I - School Improvement and Accountability M 84.010A 10-4331-SS 2,249,982
Total Title I - Cluster 2,249,982 1,587,433
Passed-Through Illinois State Board of Education:
Education Jobs Fund 84.410 11-4880-93 $ -0- $ 91,549
State Fiscal Stabilization Fund - Cluster
Passed-Through Illinois State Board of Education:
ARRA-General State Aid-Education SFSF 84.394 10-4850-93 135,199 -0-
ARRA-General State Aid-Government SFSF 84.397 10-4870-93 45,066 -0-
Total State Fiscal Stabilization Fund - Cluster 180,265 -0-
Improving Teacher Quality State Grants
Passed-Through Illinois State Board of Education:
Title II - Teacher Quality - Leadership Grant 84.367A 10-4935-SS 226,580 -0-
226,580 -0-
Reading First State Grants
Passed-Through Illinois State Board of Education:
Title I - Reading First Part B SEA Funds M 84.357A 10-4337-00 179,116 400,953
179,116 400,953
Total Federal Awards $ 2,835,943 $ 2,079,935
(M) Program was audited as a major program.
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SOUTH COOK INTERMEDIATE SERVICE CENTER NO. 4
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2011
Expenditures
The accompanying notes are an integral part of this schedule.
SOUTH COOK INTERMEDIATE SERVICE CENTER NO. 4
Notes to the Schedule of Expenditures of Federal Awards
Year Ended June 30, 2011
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING
The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of South
Cook Intermediate Service Center No. 4 and is presented on the modified accrual basis of accounting. The
information in this schedule is presented in accordance with the requirements of OMB Circular A-133,
Audits of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in
this schedule may differ from amounts presented in, or used in the preparation of the basic financial
statements.
NOTE 2 – SUB-RECIPIENTS
Of the federal expenditures presented in the schedule, South Cook Intermediate Service Center No. 4
provided federal awards to sub-recipients as follows:
PROGRAM TITLE FEDERAL CFDA #
AMOUNT PROVIDED
TO SUB-RECIPIENTS
-NONE- -N/A- -N/A-NOTE
3 – DESCRIPTION OF MAJOR PROGRAMS
The following federal programs were audited as a major program in accordance with the requirements of
OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations.
Title I – School Improvement & Accountability:
This program is part of the Center’s System of Support Coordination and Services Plan. The program is
part of a strategy to nurture and assist low-performing schools in Southern Cook County. Services initially
are targeted in 85 elementary and high schools and 28 districts now on the Academic Early Warning List
(AEWL) and Academic Watch List (AWL), with provision to support additional districts and schools when
they are identified. Moreover, schools in jeopardy of being identified as low-performing will be
encouraged to access school improvement resources on a fee for services basis.
The goals of the program are to:
Establish a regional support system to provide improvement support to schools and districts on the
AEWL and AWL;
Assist other schools and districts whose performance make placement on the list in the near future
likely;
Build capacity within each targeted school and district for continuous school improvement; and
Serve all schools and districts identified for support in the region and assist and collaborate with
other regional centers to provide full coverage of targeted districts through efficient and cost-effective
programs.
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SOUTH COOK INTERMEDIATE SERVICE CENTER NO. 4
Notes to the Schedule of Expenditures of Federal Awards
Year Ended June 30, 2011
NOTE 3 – DESCRIPTION OF MAJOR PROGRAMS (Concluded )
Title I – Grants to Local Educational Agencies, Recovery Act
The objective of this program is to help local educational agencies (LEAs) and schools improve the
teaching and learning of children failing, or most at-risk of failing, to meet challenging State academic
achievement standards.
Title I – Reading First Part B SEA Funds:
The No Child Left Behind Act of 2001 (NCLB) authorized Reading First, which emphasizes the importance
of both improving student reading achievement and implementing programs and strategies scientifically
proven to be effective. The goal of the program is to have every student reading at grade level or above by
third grade.
Eligible school districts are identified by the state. Each funded district will receive a three year grant to
support professional development, core and supplementary reading materials, assessment materials, and
instruction aligned to scientific based reading research for K-3 classrooms.
Each school’s reading program must include the five essential components of reading instruction as
reported in the National Reading Panel report in 2000. These include phonemic awareness, phonics,
fluency, vocabulary and comprehension. In addition, professional development will include ways to
effectively screen, identify and overcome barriers facing K-3 students.
The goals of the program are to:
Provide professional development that recognizes and removes barriers to reading;
Help schools choose appropriate assessments, implement scientifically-proven literacy programs
and learning strategies;
Help schools and communities improve family literacy; and
Support early literacy in students and families where English is not their native language.
NOTE 4 – NONCASH ASSISTANCE
-NONE-NOTE
5 – LOAN AND LOAN GUARANTEES OUTSTANDING
-NONE-NOTE
6 – INSURANCE
-NONE-
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