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COMPREHENSIVE ANNUAL

FINANCIAL REPORT

Fiscal Year Ending June 30, 2016

ILLINOIS VALLEY

COMMUNITY COLLEGE

District 513

ILLINOIS VALLEY COMMUNITY COLLEGE

DISTRICT NO. 513

Oglesby, Illinois

COMPREHENSIVE ANNUAL FINANCIAL REPORT

Fiscal Year Ended June 30, 2016

Prepared by:

Business Office

Cheryl Roelfsema

Vice President for Business Services and Finance

Kathy Ross

Controller

PAGE

Letter of Transmittal i - xi

Certificate of Achievement for Excellence in Financial Reporting xii

Organizational Chart xiii

Principal Officials xiv

INDEPENDENT AUDITOR'S REPORT 1 - 3

MANAGEMENT'S DISCUSSION AND ANALYSIS 4 - 19

BASIC FINANCIAL STATEMENTS

Statement of Net Position 20

Statement of Revenues, Expenses, and Changes in Net Position 21

Statement of Cash Flows 22

Notes to Basic Financial Statements 23 - 41

REQUIRED SUPPLEMENTARY INFORMATION

Employees Retirement System 42 - 43

Statistical Section 44

Financial Trends

Schedule of Net Position by Component 45

Schedule of Expenses by Activity 46 - 47

Schedule of Expenses by Use 48 - 49

Schedule of Revenues by Source

50 - 51

Schedule of Other Changes in Net Position 52

Tuition and Fees Last Ten Academic Years 53

Revenue Capacity

Schedule of Property Tax Equalized Assessed Valuations Last Ten Fiscal Years 54

Schedule of Property Tax Levies and Collections Last Ten Fiscal Years 55

Debt Capacity

Schedule of Debt Maturities 56

Schedule of Ratios of Outstanding Debt Last Ten Fiscal Years 57

Schedule of Bond Coverage Last Ten Fiscal Years 58

Legal Debt Margin Information Last Ten Fiscal Years 59

Demographic and Economic Information

Demographic and Economic Statistics Last Ten Calendar Years 60

Principal Employers 61

Principal Taxpayers 62

Faculty, Staff, and Administrator Statistics Last Ten Fiscal Years 63

TABLE OF CONTENTS

INTRODUCTORY SECTION

FINANCIAL SECTION

STATISTICAL SECTION (UNAUDITED)

PAGE

Operating Information

Admissions and Enrollment Statistics Last Ten Academic Years 64

Student Enrollment Demographic Statistics by Category Last Ten Fiscal Years 65

Capital Asset Statistics Last Ten Fiscal Years

66

SUPPLEMENTARY FINANCIAL INFORMATION

Combined Balance Sheet - All Fund Types 67 - 68

Combined Schedule of Revenues, Expenditures, and Changes in Fund Balances -

All Governmental Fund Types 69

Combined Schedule of Revenues, Expenditures, and Changes in Fund Balances -

Budget and Actual - All Governmental Fund Types 70

General Fund

Combining Balance Sheet 71

Combining Schedule of Revenues, Expenditures, and Changes in Fund Balance 72

Special Revenue Funds

Combining Balance Sheet 73

Combining Schedule of Revenues, Expenditures, and Changes in Fund Balance 74

Restricted Purposes Fund

Schedule of Revenues, Expenditures, and Changes in Fund Balance -

Budget and Actual 75

Schedule of Revenues, Expenditures, and Changes in Fund Balance 76

Working Cash Fund

Schedule of Revenues, Expenditures, and Changes in Fund Balance -

Budget and Actual 77

Audit Fund

Schedule of Revenues, Expenditures, and Changes in Fund Balance -

Budget and Actual 78

Liability, Protection, and Settlement Fund

Schedule of Revenues, Expenditures, and Changes in Fund Balance -

Budget and Actual 79

Debt Service Fund

Balance Sheet 80

Schedule of Revenues, Expenditures, and Changes in Fund Balance -

Budget and Actual 81

Capital Projects Fund

Balance Sheet 82

Schedule of Revenues, Expenditures, and Changes in Fund Balance -

Budget and Actual 83

SPECIAL REPORTS SECTION

PAGE

Proprietary Funds Type

Schedule of Revenues, Expenses, and Changes in Net Position -

Budget and Actual 84

Schedule of Cash Flows 85

Combining Balance Sheet 86

Combining Schedule of Revenues, Expenses, and Changes in Net Position 87

Reconciliation of the Combined Balance Sheet - All Fund Types - to the Statement

88

of Net Position

Reconciliation of the Combined Statement of Changes in Fund Balances - All Fund Types -

to the Statement of Revenues, Expenses, and Changes in Net Position 88

Fiduciary Fund Type

Schedule of Changes in Assets and Liabilities 89 - 90

Assessed Valuations, Tax Rates, and Extensions 91

Summary of Taxes Receivable, Tax Collections and Legal Debt Margin 92

UNIFORM FINANCIAL SCHEDULES

Schedule of All Funds

93

Schedule of Changes in Capital Assets and Long-Term Debt 94

Schedule of Operating Fund Revenues and Expenditures 95 - 96

Restricted Purposes Fund Revenues and Expenditures 97

Current Funds Expenditures by Activity 98

Schedule of Expenditures for Students Federal Awards Program 99

CERTIFICATION OF CHARGEBACK REIMBURSEMENT

Certification of Chargeback Reimbursement 100

INDEPENDENT AUDITOR'S REPORT ON THE GRANT PROGRAM FINANCIAL STATEMENTS 101 - 102

STATE ADULT EDUCATION AND FAMILY LITERACY GRANT

103

104

Balance Sheet

Combined Schedule of Revenues, Expenditures, and Changes in Fund Balance

Expenditure Amounts and Percentages for ICCB Grants Only

105

CAREER AND TECHNICAL EDUCATION - PROGRAM IMPROVEMENT GRANT

Balance Sheet 106

Schedule of Revenues, Expenditures, and Changes in Fund Balance 107

STUDENT LIFE SPACE SPECIAL INITIATIVE GRANT

108

Balance Sheet

Schedule of Revenues, Expenditures, and Changes in Fund Balance

109

Notes to ICCB Grant Programs Financial Statements 110 - 111

ICCB STATE GRANT FINANCIAL - COMPLIANCE SECTION

COMPLIANCE SECTION

PAGE

INDEPENDENT ACCOUNTANT'S REPORT ON ENROLLMENT DATA

AND OTHER BASES UPON WHICH CLAIMS ARE FILED 112

Schedule of Enrollment Data and Other Bases Upon Which Claims are Filed 113

Reconciliation of Total Semester Credit Hours 114

Verification of Student Residency 115

SUPPLEMENTARY FINANCIAL INFORMATION

Summary of Assessed Valuations 116

INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING 117 - 118

AND ON COMPLIANCE AND OTHER MATTERS

INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM

AND ON INTERNAL CONTROL OVER COMPLIANCE 119 - 120

Schedule of Expenditures of Federal Awards 121 - 122

Notes to Schedule of Expenditures of Federal Awards 123

Schedule of Findings and Questioned Costs 124 - 125

Summary Schedule of Prior Audit Findings 126

FEDERAL COMPLIANCE AUDIT SECTION

INTRODUCTORY SECTION

Table of Contents

September 27, 2016

To

Members of the Board of Trustees and Citizens of

Illinois Valley Community College District No. 513:

The

Comprehensive Annual Financial Report (CAFR) of Illinois Valley Community College (IVCC) District

No. 513 (the College), counties of LaSalle, Bureau, Marshall, Lee, Putnam, DeKalb, Grundy, and Livingston,

and the State of Illinois, for the fiscal year ended June 30, 2016, is hereby submitted. The CAFR provides

a snapshot of the College’s financial performance and major initiatives, as well as an overview of trends

in the local economy.

Financial Information

The

accuracy and completeness, along with the fairness, of the presentation of this data is the

responsibility of the College. We consider the data to be accurate in all material respects and to be

presented in a manner which is designed to set forth the financial position and results of operations of

the College. All disclosures enabling the reader to fully understand the financial affairs of the College have

been included. This letter of transmittal should be read in conjunction with management’s discussion and

analysis, which focuses on current activities and factors that could affect the College’s future.

The

College maintains its accounts and prepares its financial statements in accordance with accounting

principles generally accepted in the United States of America (GAAP) as set forth by Governmental and

Financial Accounting Standards Boards (GASB and FASB), National Association of College and University

Business Officers (NACUBO), and the Illinois Community College Board (ICCB). The financial records of the

College are maintained on the accrual basis of accounting whereby all revenues are recorded when earned

and all expenses are recorded when they have been reduced to a legal obligation to pay. The notes to the

financial statements expand on and explain the financial statements and the accounting principles

applied. The financial statements have been audited by our independent auditors, Wipfli LLP. Their report

is included as part of this financial presentation.

Illino

is Valley Community College is subject to the authority of the Illinois Community College Board under

the Illinois Board of Higher Education. The College is governed by the Board of Trustees, which is elected

by the public and has the exclusive responsibility and accountability for the decisions it makes. The College

has the statutory authority to adopt its own budget, levy taxes, and issue bonded debt without the

approval of another government. It has the right to sue and be sued, and has the right to buy, sell, lease,

or mortgage property in its own name. Based on these criteria, the College is considered a primary

government. The College has determined that the Illinois Valley Community College Foundation is a

component unit of the College because its resources directly benefit the College and its students. The

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Colleg

e’s management is responsible for establishing and maintaining an internal control structure

designed to ensure that the assets of the College are protected from loss, theft, or misuse, and to ensure

that adequate accounting data is compiled for the preparation of financial statements in conformity with

generally accepted accounting principles. The internal control structure is designed to provide reasonable,

but not absolute, assurance that these objectives are met. The concept of reasonable assurance

recognizes that (1) the cost of a control should not exceed the benefits likely to be derived, and (2) the

valuation of costs and benefits requires estimates and judgments by management.

The Col

lege maintains budgetary controls with the objective of complying with legal provisions in the

annual appropriated budget approved by the College’s Board of Trustees. The level of budgetary control

(the level at which expenditures cannot exceed the appropriated amount) is established for each

individual fund. The College also maintains an encumbrance accounting system as one technique of

accomplishing budgetary control. Encumbered amounts lapse at year-end. Encumbrances are only re-

authorized as part of the following year’s budget when funds are available and with appropriate

administrative approvals. As demonstrated by the statements and schedules included in the financial

section of this report, the College continues to meet its responsibility for sound financial management.

The I

llinois Public Community College Act requires an annual audit by independent certified public

accountants selected by the Board of Trustees. The accounting firm of Wipfli LLP was selected for this

purpose. The auditor’s opinion is unmodified. Tests are performed by the auditors to determine the

adequacy of the internal control structure, including that portion related to federal financial assistance

programs, as well as to determine that the College has complied with applicable laws and regulations. The

results of the tests for the fiscal year ended June 30, 2016 provided no instances of material weaknesses

in the internal control structure or violations of applicable laws and regulations.

Profile of the College

Illinois

Valley Community College is accredited by the Higher Learning Commission (HLC) of the North

Central Association of Colleges and Schools. IVCC has been a member of the Academic Quality

Improvement Program (AQIP) through the HLC since November 2002. As an AQIP institution, IVCC

structures its accreditation around quality-improvement processes and systems. Reaffirmation of

Accreditation was confirmed in December 2009, thereby completing the seven-year AQIP accreditation

cycle. The systems portfolio has been submitted in preparation for reaccreditation and the Higher

Learning Commission is scheduled to be on campus the week of October 17. The accreditation cycle has

recently been extended to eight years

The district is 2,058 square miles-wide, serving a population of approximately 146,000 people from all or

parts of the following eight counties: LaSalle, Bureau, Marshall, Lee, Putnam, DeKalb, Grundy, and

Livingston. The area surrounding the campus – located near the intersection of Interstates 39 and 80 – is

conveniently situated in north-central Illinois, within a 60-mile radius of Rockford, Peoria, Bloomington-

Normal, and Rock Island-Moline, and only 90 miles from Chicago. There are many economic opportunities

and incentives for businesses and industrial firms and expansive farmland which support a diverse

industrial, service, and agricultural economy.

Ente

rprise Zones and Tax Increment Financing (TIF) districts offer additional incentives to conduct

business in the Illinois Valley. The Illinois Valley Enterprise Zone was established in 1986 and encompasses

large areas of the cities of LaSalle, Oglesby, Peru, and the Village of North Utica, as well as unincorporated

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areas o

f LaSalle County. The Illinois Valley Enterprise Zone provides excellent economic incentives for new

and existing businesses to invest in the area. The Bureau-Putnam County Enterprise Zone also offers

excellent economic opportunities in the College’s district.

VISION, MISSION, CORE VALUES

STRATEGIC GOALS AND OBJECTIVES

Vision

Lead

ing our community in learning, working and growing

Mission

IVCC

teaches those who seek and is enriched by those who learn.

Core Values

Respo

nsibility - We will follow through on our commitments and welcome constructive assessment and

suggestions for improvement. We will meet performance expectations for personal and professional

conduct. We will be accountable for appropriate, efficient, and effective use of resources.

Caring – We will nurture a culture of mutual appreciation; cultivate empathy and a compassionate

response to others.

Hones

ty – We will speak and act truthfully, without hidden agendas – admitting when we make mistakes

or do not know, avoiding silence when it may be misleading, identifying and working with each other to

communicate and solve problems.

Fair

ness – We will treat students and colleagues equitably, without favoritism or prejudice, giving all the

benefit of the doubt and providing opportunities for individual success.

Respect – We will consider the talents, feelings and contributions of everyone in our interactions and

behaviors; practice active listening and collaborating in our daily work; base our relationships on the

essential dignity of each individual; value diverse cultures, backgrounds, lifestyle and abilities; and

understand that inclusion makes us stronger and able to perform at higher levels.

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Strategic Goals and Objectives

Assist

all students in identifying and achieving their educational and career goals.

• Improve student retention through offerings designed to prepare students for targeted

curricula.

• Increase student learning and student satisfaction through curricular and technology

improvements.

• Improve student preparedness for the workplace.

Prom

ote the value of higher education.

• Expand prospective student awareness and interest in targeted disciplines and programs

through marketing and outreach efforts.

• Prepare and disseminate a frequent, consistent message regarding IVCC as a critical higher

education resource to business and industry.

• Prepare and disseminate a frequent, consistent message regarding IVCC as a critical higher

education resource to recent graduates, alumni, and donors.

• Expand IVCC professional development activities devoted to teaching and learning and invite

individuals working in pre-K to 12 through higher education to participate.

Grow and nurture all resources needed to provide quality programs and services.

• Increase employee satisfaction through greater workplace efficiency, effectiveness, and

security.

• Increase student satisfaction with the IVCC learning environment. Expand the number and types

of partnerships to leverage College resources.

Pro

mote understanding of diverse cultures and beliefs.

• Increase College and community understanding of diverse cultures and beliefs through IVCC

cultural enrichment and educational offerings.

Dem

onstrate IVCC’s core values through an inclusive and collaborative environment.

• Expand efforts to introduce IVCC core values into the College culture throughout employment

continuum (pre-hire to retirement).

• Model IVCC core values in all outreach to College retirees, donors, and alumni.

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Economic Condition and Outlook

The

College’s financial position continues to remain strong despite the lack of state funding. This can be

attributed to sound financial planning, budget performance, and a healthy property tax base. Though the

College’s net position decreased by $1.8 million or 2.1 percent from $85.4 million in fiscal year 2015 to

$83.6 million in fiscal year 2016, the operating funds continue to have a fund balance equal to 31 percent

of the annual operating expenses. The $1.8 million decrease in net position reflects the lack of funding by

the State of Illinois. The College received $611,896 in operating grant funds from the State, or 27 percent

of the fiscal year 2015 funding.

Demographics

The sta

tewide unemployment rate for December 2015 was 6.4 percent, compared to 9.1 percent two

years ago. The counties of LaSalle, Bureau, and Putnam make up over 90 percent of the District. In this

three-county area, the December unemployment rate was close to the state rate at 6.5 percent. However,

both the local unemployment rate and the State rate are higher than the Federal Rate (5.0 percent).

Historic December unemployment rates are illustrated below:

As of December

State of Illinois

Three-County Area

2015 6.4 6.5

2014 7.1 8.0

2013 9.1 10.2

2012 9.0 9.9

2011 9.7 10.5

2010 10.4 11.7

2009 10.2 11.9

Acc

ording to Economic Modeling Specialists, Inc. (EMSI), the overall population of the eight-county area

all or partially included in IVCC District No. 513 will decrease by less than one percent from 2016 to 2020,

from 390,118 to 388,208 residents. The following table illustrates the more significant changes within the

various age groups.

Eight-C

ounty Area

(Bureau, DeKalb, Grundy, LaSalle, Lee, Livingston, Marshall, and Putnam)

Age Group 2016 2017 2018 2019 2020 % Change

Under 5 22,305 22,686 23,109 23,597 23,604 6%

10-14 25,189 24,820 24,386 23,913 23,514 (7%)

15-24 60,770 60,518 60,268 60,020 60,099 (1%)

45-49 23,505 23,067 22,693 22,372 22,096 (6%)

50-54 26,739 25,737 24,729 23,781 23,090 (14%)

55-59 27,675 27,510 27,184 26,718 26,035 (6%)

65-69 19,674 20,272 20,878 21,480 22,048 12%

70-74 15,080 15,498 15,948 16,439 16,980 13%

75-79 11,103 11,393 11,721 12,075 12,397 12%

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The

population aged 15-24 years will decrease by one percent from 2016 to 2020. This age group

represents the majority of the College’s students which means steady enrollments at IVCC in the short

term. However, as illustrated above, the 10-14 years age group has a seven percent decrease which

translates to lower enrollments over the next 10 years. The age group under five years of age is predicted

to grow at six percent from 2016 to 2020. This is a potential increase in enrollments in the next 10 to 20

years. The chart above also shows the largest growing segment of our population as those individuals over

65 years of age.

As the population ages, there will be a greater demand for healthcare services, and IVCC’s administration

is anticipating an increase in demand for health profession courses. This population shift will mean less

need for traditional general education courses and a greater need for personal interest courses.

In c

omparing the above data to demographic projections supplied by EMSI for LaSalle, Bureau, and

Putnam Counties, which comprise the majority of the College’s district, the population aged 15-24 years

is projected to decrease by five percent. The 10-14 years age group will decrease by nine percent, and the

under five years age group will increase by eight percent. Consistent with the eight-county area, the

population over 65 years of age is the fastest growing segment of the population. The total population of

these three counties is projected to decrease by 2,211 individuals, or slightly more than one percent, from

2016 to 2020.

Thre

e-County Area

(Bureau, LaSalle, and Putnam)

Age Group 2016 2017 2018 2019 2020 % Change

Under 5 8,175 8,348 8,549 8,802 8,812 8%

10-14 9,739 9,532 9,303 9,061 8,860 (9%)

15-24 18,104 17,861 17,612 17,360 17,185 (5%)

45-49 9,198 8,963 8,759 8,585 8,446 (8%)

50-54 10,972 10,529 10,081 9,654 9,323 (15%)

60-65 8,515 8,791 9,071 9,346 9,581 13%

70-74 6,606 6,755 6,918 7,100 7,323 11%

85 and over 4,249 4,151 4,073 4,014 3,968 (7%)

Alth

ough the population of these three counties will decrease only slightly, there will continue to be a

shift in the makeup of the population as residents age.

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Thr

ee-County Area

(Bureau, LaSalle, and Putnam)

Demographic

2016

2017

2018

2019

2020

% of

Population

%

Change

White,

Non-Hispanic

130,023 129,066 128,187 127,384 126,651 86% (3%)

Hispanic/

Latino (any race)

13,555 13,761 13,950 14,121 14,279 10% 5%

Black,

Non-Hispanic

2,798 2,860 2,916 2,967 3,014 2% 8%

Two or More

Races,

Non-Hispanic

1,599 1,622 1,643 1,662 1,679 1% 5%

All Other Races 1,631 1,671 1,709 1,742 1,773 1% 9%

The W

hite, Non-Hispanic population is expected to decrease by 3,372 individuals, or three percent,

although still making up 86 percent of the total population in 2020. The Hispanic/Latino population (any

race) will increase by 724, to a total of 14,279 individuals, making up 10 percent of the total population.

The Black, Non-Hispanic population will increase by 216 individuals, to a total of 3,014, an increase of

eight percent, or two percent of the population, and the population made up of two or more races, Non-

Hispanic, will increase by 142 individuals, an expected increase of nine percent, making up one percent of

the total population.

Enr

ollments

His

torically, there has been a correlation between credit hours and unemployment rates. In 2015, the

annual average unemployment rates for Illinois were 5.9 percent for the U-3 rate and 10.9 percent for the

U-6 rate. Though still above national averages, these rates show a decline from the 2009 averages. The

91,331 non-Correctional Center credit hours reported for fiscal year 2011 was a record high, following a

previous record high of 86,432 credit hours in 2010. Though it is a very weak economic recovery, IVCC’s

enrollments are at a 16-year low. The current trend for low enrollments at community colleges is

throughout the Illinois Community College System and much of the nation.

Pe

ople are included in the monthly U-3 unemployment rate if they:

• did not work for pay during the week that included the 12

th

day of the month

• had actively looked for work during the preceding four weeks or were waiting to be called back

from a temporary layoff

• could have started a job if they had received an offer.

People are included in the monthly U-6 unemployment rate if they:

• were included in the U-3 rate

• are “marginally attached” to the labor force, that is those who are neither working nor looking for

work but want and are available for a job and have looked for work sometime in the past 12

months

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• work p

art time for economic reasons, would have preferred full-time employment but were

working part-time because their hours had been cut back or because they could not find a full-

time job.

Unem

ployment Rates and IVCC Credit Hour Trends

U-3

U-6

Credit Hours

His

torical Enrollment Information

Credit Hours

Term FY2011 FY2012 FY2013 FY2014 FY2015

FY2016

Summer 12,368 9,900 6,886 6,569 6,020

6,193

Fall 43,354 40,471 35,995 34,006 31,533

28,964

Spring 40,463 36,567 33,175 31,479 30,049

28,036

Total 96,185 86,938 76,056 72,054 67,602

63,193

One

of the goals identified by the Illinois Board of Higher Education in its strategic plan is for college to be

“. . . affordable for all Illinoisans, particularly low-income students.” To support that goal, the IVCC Board

of Trustees has been clear in its desire to keep tuition and universal fees at a minimum level. Tuition and

universal fees for fall semester 2016 are $124 per credit hour. IVCC’s tuition and universal fees are lower

than the state average of $133.24. The College has the resources necessary to serve student enrollments

at the FY2011 historically high enrollments.

The av

erage student is 24 years of age. The ethnic breakdown includes 84 percent White (non-Hispanic),

five percent Hispanic, two percent Black (non-Hispanic), and one percent Asian. The remaining eight

percent are either other minorities or did not respond to a self-identification survey question. This student

demographic mirrors the areas demographics as illustrated previously.

2003200420052006200720082009201020112012201320142015

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IVC

C continues to prepare students for a solid future and meet the ever-changing needs of area

employers. For academic year 2016-2017, an agriculture program coordinator/instructor has been hired.

Many local students were attending other colleges with agriculture programs plus agriculture makes up a

large segment of the local economy. The College owns over 150 acres which is actively being farmed

making a natural laboratory setting for an agriculture program.

Sta

te Funding

The State of Illinois continues to struggle with a slow economic recovery and budget issues. The State’s

expenditures continue to outpace revenues, causing an estimated deficit of $9 billion for fiscal year 2016

and a total deficit of $111 billion, which includes payments due to five pension systems. Accordingly, the

future of State funding for the College continues to be a concern. State funding to IVCC for fiscal year 2016

was only 27 percent of the fiscal year 2015 funding, a decrease of $1.6 million. For fiscal year 2017, the

legislature approved stopgap funding for the first six months of the fiscal year. For IVCC this was $862,216.

Through fiscal responsibility, the College had the reserves to cover the revenue shortfall in fiscal year

2016. Fiscal year 2017 will be a transition year with the College working on a new model dictated by the

lack of state funding. The College is committed to the legislative process and will continue to keep State

leaders informed of the crucial role of community colleges for the State’s economic and social well-being.

Pro

perty Tax Revenues

The l

ocal property tax base increased in tax year 2015 by $17.8 million or .6 percent. However, the

equalized assessed valuation (EAV) is $186.4 million, or 5.8 percent less than tax year 2009. In December

2012, an agreement between Exelon’s LaSalle Generating Station, the district’s largest taxpayer, and the

taxing bodies was signed, agreeing to the Plant’s EAV as follows:

2013 2014 2015 2016 2017 2018 2019

EAV (in millions)

$485

$455

$435

$430

$435

$460

The

following table shows the diversity of the property tax base over the last five years. The increase in

the EAV of the Exelon LaSalle Generating Plant significantly increased the industrial property tax base in

levy year 2009. The tax year 2015 increase in EAV was due to farmland, residential, and commercial

property values offsetting the decline in value for industrial properties.

Property Type

2015 2014 2013 2012 2011 2010 2009

Residential

43% 43% 44% 45% 47% 48% 50%

Industrial

21% 23% 23% 23% 23% 22% 21%

Farm

20% 20% 19% 18% 16% 16% 15%

Commercial

13% 13% 13% 13% 13% 12% 13%

Other

3% 1% 2% 1% 1% 2% 1%

Unde

r current law, tax caps could restrict the College’s operations in the future. Before tax caps can be

initiated, all eight counties must put the proposition to a vote with the majority (LaSalle County) passing

it. In November 1998, the voters of LaSalle County voted down tax caps; however, the issue can be placed

on the ballot at any time in the future. The earliest that tax caps could take effect would be tax year 2017,

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payab

le in 2018. In the most recent state legislative session there were bills introduced to place a tax

freeze on property taxes but the bills did not come to a vote. It is anticipated there will be further

discussions regarding property freezes.

The

District’s largest county, LaSalle County, is recognized as a leader in the use of tax increment financing

(TIF) for the purpose of stimulating economic development. Under Illinois law, TIF districts may be

established by municipalities to freeze the amount of property tax revenue collected by taxing bodies for

up to 23 years and direct the increment to a special fund for infrastructure development, as determined

by the cities or villages that adopt TIF ordinances. Since property tax revenue makes up more than one-

third of the College’s total revenue, the Board has taken the position that the College must aggressively

seek intergovernmental agreements with cities and villages that adopt TIF district financing with the goal

of making the College “whole” on such projects and protecting the College’s tax base. Approximately six

percent of the equalized assessed valuation of the College’s tax base is in TIF districts.

Capi

tal Improvements

A t

hree-phase state-funded capital program got underway in 2011. The project consisted of three phases:

Phase 1 Construction of the Peter Miller Community Technology Center building

Phase 2 East Campus Renovations

Phase 3 Campus-wide Renovations

Phas

e 3 was completed in December 2015. The $31 million project required $7.6 million in matching funds

from the College. The College used $2.6 million from a building fund reserve and borrowed the remaining

$5.0 million. The College later issued bonds to pay the debt. The last payment for the bond issue will be

made in December 2016.

Debt Administration

The Co

llege had general bonded debt of $265,000, as of June 30, 2016, as a result of the Series 2011

Community College Bonds. Bonded debt per capita was approximately $2 as of June 30, 2016. Please refer

to Note 5 of the basic financial statements for further information on the long-term debt of the College.

Awa

rds and Acknowledgements

The

College has been awarded a “Certificate of Achievement for Excellence in Financial Reporting” from

the Government Finance Officers Association of the United States and Canada annually for the years

ending June 30, 1994 through 2015.

In o

rder to be awarded the certificate, the College must publish an easy-to-read and efficiently organized

comprehensive annual report with contents that conform to program standards. The report must satisfy

both generally accepted accounting principles and applicable legal requirements. The “Certificate of

Achievement for Excellence in Financial Reporting” is valid for a period of one year.

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We wish to thank the College’s Board of Trustees for their interest and support in conducting the financial

operations of the College to the degree of “excellence” necessary for continuance of operation of the

College in a responsible and progressive manner.

The

preparation of this document was made possible by the dedicated service of the College’s Business

Services and Finance staff. We wish to express our sincere appreciation to all members of the department

for their loyalty and commitment to providing high quality reports for all College stakeholders.

Resp

ectfully submitted,

__________

____________________ ___________________________

Dr. Jerome M. Corcoran Ms. Cheryl Roelfsema, CPA, CMA, CPFO

President Vice President for Business Services

& Finance / Treasurer

xi

Table of Contents

xii

Table of Contents

xiii

Table of Contents

ILLINOIS VALLEY COMMUNITY COLLEGE

DISTRICT 513

Principal Officials

as of July 1, 2016

Members of the Board of Trustees

(with term expiration)

Ms. Melissa M. Olivero, Chair

(2021)

Dr. Michael C. Driscoll, Vice-Chair

(2017)

Dr. Larry D. Huffman, Secretary

(2017)

Ms. Laurie A. Bonucci

(2019)

Ms. Jane E. Goetz

(2019)

Mr. David O. Mallery

(2017)

Mr. Everett J. Solon

(2021)

Ms. Sarah Tipton

Student Trustee – 2017

Principal Administrative Officials

Dr. J

erome M. Corcoran – President

Dr.

Deborah Anderson – Vice President for Academic Affairs

Mr. Mark Grzybowski –Associate Vice President for Student Services

Ms. Sue Isermann – Associate Vice President for Academic Affairs

Ms. Cheryl E. Roelfsema – Vice President for Business Services & Finance/Treasurer

xiv

Table of Contents

FINANCIAL SECTION

Table of Contents

1

INDEPENDENT AUDITOR’S REPORT

Board of Trustees

Illinois Valley Community College

Illinois Community College District #513

Oglesby, Illinois

Report on the Financial Statements

We have audited the accompanying financial statements of the business-type activities and the

discretely presented component unit of Illinois Valley Community College, Illinois Community College

District #513 (College) as of and for the year ended June 30, 2016, and the related notes to the

financial statements, which collectively comprise the College’s basic financial statements as listed in

the table of contents.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in

accordance with accounting principles generally accepted in the United States of America; this includes

the design, implementation, and maintenance of internal control relevant to the preparation and fair

presentation of financial statements that are free from material misstatement, whether due to fraud or

error.

Auditor’s Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We did not

audit the financial statements of the Illinois Valley Community College Foundation, a discretely

presented component unit, which represents 100 percent of the assets, net position and revenue of the

discretely presented component unit. Those financial statements were audited by other auditors whose

report thereon has been furnished to us and, in our opinion, insofar as it relates to the amounts included

for Illinois Valley Community College Foundation, is based solely on the report of other auditors. We

conducted our audit in accordance with auditing standards generally accepted in the United States and

the standards applicable to financial audits contained in Government Auditing Standards. Those

standards require that we plan and perform the audits to obtain reasonable assurance about whether

the financial statements are free from material misstatement. The financial statements of Illinois Valley

Community College Foundation were not audited in accordance with Government Auditing Standards.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in

the financial statements. The procedures selected depend on the auditor’s judgment, including the

assessment of the risks of material misstatement of the financial statements, whether due to fraud or

error. In making those risk assessments, the auditor considers internal control relevant to the College’s

preparation and fair presentation of the financial statements in order to design audit procedures that are

appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness

of the College’s internal control. Accordingly, we express no such opinion. An audit also includes

evaluating the appropriateness of accounting policies used and the reasonableness of significant

accounting estimates made by management, as well as evaluating the overall presentation of the

financial statements.

2

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

audit opinions.

Opinions

In our opinion, based on our report and the report of other auditors, the financial statements referred

to above present fairly, in all material respects, the respective financial position of the business-type

activities and the discretely presented component unit of Illinois Valley Community College, Illinois

Community College District #513 as of June 30, 2016, and the respective changes in financial

position and, where applicable, cash flows thereof for the years then ended in accordance with

accounting principles generally accepted in the United States.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the

Management’s Discussion and Analysis and the Employees Retirement System, as listed in the table

of contents, be presented to supplement the basic financial statements. Such information, although

not a part of the basic financial statements, is required by the Governmental Accounting Standards

Board, who considers it to be an essential part of financial reporting for placing the basic financial

statements in an appropriate operational, economic, or historical context. We have applied certain

limited procedures to the required supplementary information in accordance with auditing standards

generally accepted in the United States of America, which consisted of inquiries of management

about the methods of preparing the information and comparing the information for consistency with

management’s responses to our inquiries, the basic financial statements, and other knowledge we

obtained during our audit of the basic financial statements. We do not express an opinion or provide

any assurance on the information because the limited procedures do not provide us with sufficient

evidence to express an opinion or provide any assurance.

Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements that

collectively comprise the College’s basic financial statements as a whole. The Supplementary

Financial Information, Uniform Financial Schedules, the Certification of Chargeback Reimbursement,

the introductory section and statistical section are presented for purposes of additional analysis and

are not a required part of the basic financial statements. The schedule of expenditures of federal

awards is presented for purposes of additional analysis as required by U.S. Office of Management

and Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost

Principles, and Audit Requirements for Federal Awards, and is also not a required part of the basic

financial statements.

The Supplementary Financial Information, Uniform Financial Schedules, the Certification of

Chargeback Reimbursement, and the Schedule of Expenditures of Federal Awards are the

responsibility of management and was derived from and relates directly to the underlying accounting

and other records used to prepare the basic financial statements. Such information has been

subjected to the auditing procedures applied in the audit of the basic financial statements and certain

additional procedures, including comparing and reconciling such information directly to the underlying

accounting and other records used to prepare the basic financial statements or to the basic financial

statements themselves, and other additional procedures in accordance with auditing standards

generally accepted in the United States of America. In our opinion, the Supplementary Financial

Information, Uniform Financial Schedule, the Certification of Chargeback Reimbursement, the

Schedule of Expenditures of Federal Awards are fairly stated in all material respects in relation to the

basic financial statements taken as a whole.

3

The introductory section and statistical section have not been subjected to the auditing procedures

applied in the audit of the financial statements and, accordingly, we do not express an opinion or

provide any assurance on them.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated October

11, 2016 on our consideration of the College’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 in considering the College’s

internal control over financial reporting and compliance.

Sterling, Illinois

October 11, 2016

MAN

AGEMENT’S DISCUSSION AND ANALYSIS

FISCAL YEAR ENDED JUNE 30, 2016

This section of Illinois Valley Community College's Annual Financial Report presents readers with

management’s discussion and analysis of the financial activity during the fiscal years ended June 30, 2016,

and June 30, 2015. Since management’s discussion and analysis focuses on current activities and resulting

changes, it should be read in conjunction with the transmittal letter (page i), the College’s basic financial

statements (pages 17-19), and the footnotes to the financial statements (pages 20-32). The following

summary and management’s discussion of the results are intended to provide readers with an overview

of the financial statements.

The

management’s discussion and analysis is an element of the reporting model adopted by the

Governmental Accounting Standards Board (GASB) in their Statement No. 34, Basic Financial Statements

– and Management’s Discussion and Analysis – for State and Local Governments, issued June 1999 and

Statement No. 35, Basic Financial Statements – and Management’s Discussion and Analysis – for Public

Colleges and Universities, issued in November 1999.

Overview of the Financial Statements

This

annual report consists of two parts: management’s discussion and analysis (this section) and the basic

financial statements. The basic financial statements also include notes that explain some of the

information in the financial statements and provide more detailed data. The College’s financial statements

report information about the College using accounting methods similar to those used by private-sector

companies.

The Sta

tement of Net Position presents information on all of the College’s assets and liabilities, with the

difference between the two reported as net positon. The Statement of Net Position reflects the College’s

financial position as of June 30, 2016.

The Sta

tement of Revenues, Expenses and Changes in Net Position focuses on gross and net costs of

College activities which are supported by property taxes, state and federal grants and contracts, student

tuition and fees, and auxiliary enterprises revenues. This statement summarizes and simplifies the analysis

of College services to students and the public.

• Lon

g-term increases or decreases in net position help indicate an improving or deteriorating

financial position of Illinois Valley Community College.

• To assess the College’s overall health, non-financial factors, such as changes in the College’s

property tax base, the condition of the College’s facilities, and the level of expertise of the faculty,

staff, and administration, should also be considered.

4

Table of Contents

Financ

ial Highlights

The College’s financial data continues to be strong despite the poor financial condition of the State

of Illinois and the lack of State funding for Illinois community colleges. Net position decreased by

$1,602,414, or 1.9 percent, in the current fiscal year.

• Overall re

venues were $34,265,959, a 4.5 percent decrease when compared to $35,863,559 in

fiscal year 2015.

o Tuitio

n revenues, net of scholarships and allowances, increased by $366,061 from fiscal

year 2015 after adjusting for summer semester tuition earned prior to June 30, 2015.

Though tuition rates increased by 7.2 percent, enrollments were lower by 4.5 percent. In

fiscal year 2016, the College recorded the portion of summer semester tuition that was

earned prior to June 30, 2016. In prior years, all summer semester tuition was recorded

in the subsequent year.

o State

and local grants and contracts decreased by $1,112,444, an 11.2 percent decrease

from fiscal year 2015. State credit hour and equalization grants decreased by $1,620,785.

The State’s On-behalf SURS (State University Retirement System) contribution increased

by $1,070,527. Fiscal year 2015 State and local grants and contracts included $832,000 in

State contributions for construction projects.

o Property tax revenues increased by $165,161, or 1.4 percent, from fiscal year 2015. The

property tax base increased by approximately $17.9 million, or 0.5 percent. The 2015 tax

year rate of $0.3760 per $100 EAV was higher than the 2014 tax year rate of $0.3707 due

to an increase in the additional, or equity, tax rate. The equity tax provides a mechanism

for Illinois community colleges with lower property tax rates to levy an amount equal to

the state average for operating tax rates.

Total

operating expenses were $35,847,095, a 2.7 percent increase when compared to $34,898,091 in

fiscal year 2015.

5

Table of Contents

Illinois Valley Community College

Net Position

As of June 30

2016

2015

Increase

(Decrease)

2016-2015

2014

Increase

(Decrease)

2015-2014

Current assets 29,362,404$ 31,840,103$ (2,477,699)$ 34,381,346$ (2,541,243)$

Non-current assets

Investments 248,000 1,492,048 (1,244,048) - 1,492,048

Capital assets, net of

depreciation

62,174,592

61,986,034

188,558

61,588,437

397,597

Total assets 91,784,996

95,318,185

(3,533,189)

95,969,783

(651,598)

Deferred outflows of

resources 51,813

-

51,813

-

Total assets and deferred

outflows of resources 91,836,809

95,318,185

(3,481,376) 95,969,783

(651,598)

Current liabilities 2,119,195 3,966,404 (1,847,209) 3,979,482 (13,078)

Non-current liabilities 284,576

445,631

(161,055)

1,711,759

(1,266,128)

Total liabilities 2,403,771

4,412,035

(2,008,264)

5,691,241

(1,279,206)

Deferred inflows of

resources 5,618,226

5,488,924

129,302

5,512,954

(24,030)

Net position

Net investment in

capital assets

62,174,592 61,986,034 188,558 61,588,437 397,597

Restricted-expendable 12,891,136 13,546,036 (654,900) 12,425,192 1,120,844

Unrestricted 8,749,084

9,885,156

(1,136,072)

10,751,959

(866,803)

Total net position 83,814,812

$

85,417,226

$

(1,602,414)

$

84,765,588

$

651,638

$

The largest component of net position, $62.2 million, reflects the College’s investment in capital assets

(land, buildings, furniture, and equipment), less related outstanding debt that was issued to acquire those

items and any unspent proceeds. The College uses these capital assets to provide services to residents of

the College’s District; consequently, these assets are not available for future spending. For more

information on capital assets, please refer to Note No. 4 – Change in Capital Assets on page 26.

Restricted assets represent resources that are subject to restrictions on how they may be spent. Restricted

assets totaled $12.9 million and are committed for capital projects, debt service, and specific instructional

programs. The remaining balance of $8.7 million represents unrestricted net assets and is available for

spending at the College’s discretion.

Fiscal Year 2016 Compared to 2015

Current assets decreased by $2,447,699, or 7.8 percent, from the previous year. Non-current assets

decreased by $1,244,048. The decrease in current assets was offset by the decrease in non-current

assets due to certificates of deposit with a term longer than 12 months being reclassed from long-term

to short-term as the certificates of deposit come closer to maturity. Capital assets (non-current)

increased by $188,558 with the completion of the Community Instructional Center Phase 3 and an

upgrade of the Building A HVAC system off set by $2,507,943 in depreciation. The final phase of the

Community Instructional Center project included renovations for a Student Life Center, a Cyber Café,

and classrooms and instructional laboratories in Building D. In Building A, the original air handler and the

20-year old chiller were replaced.

6

Table of Contents

Curre

nt liabilities decreased by $1,847,209, or 46.6 percent. The current portion of bonds payable

decreased by $980,000 after the December 1, 2015 bond payment. After the December 1, 2016 bond

payment of $265,000, the College will not have any outstanding bond issues. Accounts payable decreased

by $351,911, and accrued salaries decreased by $267,426. Other accruals and unearned revenues

increased by $192,863.

Non-c

urrent liabilities decreased by $161,055, due to reclassifying the final bond payment from a non-

current to current liability and recording the capital lease for the athletic vans.

Fiscal Year 2015 Compared to 2014

Fisc

al year 2015 current assets decreased by $2,541,245, or 7.4 percent, from the previous year. Non-

current assets increased by $1,889,645, or 3.1 percent. During FY2015, the College purchased certificates

of deposit with a term longer than 12 months, which changed the classification from current to non-

current. Capital assets (non-current) increased with the installation of the new sound system in the

Cultural Centre. This increase in capital assets was offset by a decrease in cash (current). Total assets

decreased by $651,600, or less than one percent.

The

Community Instructional Center project began in fiscal year 2012. The project had three phases: 1)

construction of the Peter Miller Community Technology Center building, 2) remodel existing buildings on

the East Campus, and 3) remodel existing vacated areas. Anticipated completion date for Phase 3 was

November 2015.

Fisc

al year 2015 current liabilities decreased by $13,078, or less than one percent. Accounts payable

increased by $262,000, accrued salaries increased by $17,990, and other accrued expenditures decreased

by $447,555. Unearned tuition and fee revenue increased by $124,486.

Non-c

urrent liabilities decreased by $1,266,128 due to a bond payment of $1,215,000. Total liabilities

decreased by $1,279,206, or 22.5 percent.

Ana

lysis of Net Position

June 30

Net position

2016 2015

Increase

(Decrease)

2016-2015

2014

Increase

(Decrease)

2015-2014

Net investment in

capital assets

62,174,592$ 61,986,034$ 188,558$ 61,588,437$ 397,597$

Restricted

Expendable

12,891,136 13,546,036 (654,900) 12,425,192 1,120,844

Unrestricted 8,749,084 9,885,156

(1,136,072)

10,751,959 (866,803)

Total 83,814,812$ 85,417,226$ (1,602,414)$ 84,765,588$ 651,638$

7

Table of Contents

Fisc

al Year 2016 Compared to 2015

The

College’s net position decreased in fiscal year 2016 by $1,602,414, or 1.9 percent. Capital assets

increased by $188,558 with the completion of the Community Instructional Center Project Phase 3

renovations and the update to Building A HVAC system offset by current year depreciation. More

information on capital assets is provided on the following page and in Note 4 to the financial

statements.

Fiscal Year 2015 Compared to 2014

The College’s net position increased in fiscal year 2015 by $651,638, or slightly less than one percent. In

fiscal year 2015, the Cultural Centre sound system was upgraded, increasing capital assets and providing

a more modern learning facility for the Humanities, Fine Arts, and Social Sciences Division, as well as

community activities. More information on capital assets is provided on the following page and in Note 4

to the financial statements.

8

Table of Contents

Comp

arison of Net Position

Fiscal Years 2016 and 2015

$0

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

$70,000,000

Capital assets Restricted expendable Unrestricted

2015

2016

Comp

osition of Net Position

June 30, 2016

Capital assets

74.2%

Restricted

expendable

15.4%

Unrestricted

10.4%

9

Table of Contents

Anal

ysis of Capital Assets

As of June 30

Capital assets 2016 2015

Increase

(Decrease)

2016-2015

2014

Increase

(Decrease)

2015-2014

Land and

improvements

$ 9,521,105 $ 9,397,035 $ 124,070 $ 8,983,774 $ 413,261

Building 74,168,478 71,913,147 2,255,331 70,918,220 994,927

Equipment 12,450,550 12,318,604 131,946 12,021,821 296,783

Library books 1,288,543 1,288,543 - 1,288,543 -

Technology 2,853,671 2,673,526

180,145 1,869,811 803,715

Total 100,282,347 97,590,855 2,691,492 95,082,169 2,508,686

Less accumulated

depreciation

38,107,755 35,604,821

2,502,934 33,493,732 2,111,089

Net capital assets

62,174,592 61,986,034 188,558 61,588,437 397,597

Less applicable

long-term debt

- - -

-

Net investment

in capital assets

$ 62,174,592

$ 61,986,034 $ 188,558

$ 61,588,437 $ 397,597

Comp

osition of Capital Assets

June 30, 2016

Buildings

74.0%

Equipment

12.4%

Land

9.5%

Library Books

1.3%

Technology

2.8%

Add

itions to capital assets in FY2016 include the following:

• Building A Air Handler/Chiller replacement

• Cyber Café in Building C

• Elevator in Building E for improved accessibility

• Exterior door replacement for energy efficiency and security

• Sculpture – “Power On” by John Adducci – part of State of Illinois Art in Architecture

• Culture Centre carpet replacement

Please see Note 4.

10

Table of Contents

Opera

ting Results

For the Year Ended June 30

2016 2015

Increase

(Decrease)

2016-2015

2014

Increase

(Decrease)

2015-2014

Operating revenue

Net tuition and fees

$ 5,704,378 $ 5,147,956 $ 556,422 $ 4,890,667 $ 257,289

Auxiliary

2,084,673 2,129,023 (44,350) 2,270,375 (141,352)

Other

231,305 330,812 (99,507) 631,671 (300,859)

Total

8,020,356 7,607,791 412,565 7,792,713 (184,922)

Less operating expenses

(35,847,095) (34,898,091) (949,004) (33,847,959) (1,050,132)

Operating income (loss)

(27,826,739) (27,290,300) (536,439) (26,055,246) (1,235,054)

Non-operating

revenues (expenses)

State and local grants

and contracts

8,802,272 9,914,716 (1,112,444) 9,027,532 887,184

Property taxes

11,627,742 11,462,581 165,161 11,303,277 159,304

Federal grants and

contracts

5,186,832 5,932,492 (745,660) 5,855,095 77,397

Gifts and contributions 550,393 908,269 (357,876) 1,067,596 (159,327)

Disposal of assets - (264,689) 264,689 (264,689)

Investment income

78,364 37,710 40,654 57,540 (19,830)

Interest expense

(21,278)

(49,141) 27,863 (76,200) 27,059

Total net non-operating

revenue

26,224,325 27,941,938 (1,717,613) 27,234,840

707,098

Change in net position

(1,602,414) 651,638 (2,254,052) 1,179,594 (527,956)

Net position, beginning

of year

85,417,226 84,765,588 651,638 83,585,994 1,179,594

Net position, end of year

$ 83,814,812

$ 85,417,226 $ (1,602,414) $ 84,765,588 $ 651,638

-

Total revenues

$ 34,265,959 $ 35,863,559 $ (1,597,600) $ 35,103,753

$ 759,806

Total expenses

$ 35,868,373 $ 34,947,232 $ 921,141 $ 33,924,159 $ 1,023,073

Fisc

al Year 2016 Compared to 2015

In fis

cal year 2016, total revenues (operating and non-operating) decreased by $1,597,600, or 4.5

percent.

The

following revenue categories increased in fiscal year 2016 over fiscal year 2015:

• Net

tuition and fees increased by $366,061, or 6.9 percent after adjusting previous year by

$190,361 net tuition and fees to include summer semester tuition earned prior to June 30, 2015.

The fiscal year 2016 tuition rate increased by $8 per credit hour, or 7.2 percent. However, credit

hours decreased by approximately 4.5 percent.

• Property tax revenues increased by $165,161, or 1.4 percent. For tax year 2016, the EAV

(equalized assessed valuation) of the district increased by 0.5 percent. The tax rate increased

from 0.3707 to 0.3760, the net effect of an increase in the additional equity tax rate and a

decrease in the tax rate for bonds.

11

Table of Contents

• State a

nd local grants and contracts decreased by $1,112,444, or 11.2 percent. State credit hour

and equalization grants decreased by $1,620,785. The State’s On-behalf SURS (State University

Retirement System) contribution increased by $1,070,527. Fiscal year 2015 State and local grants

and contracts included $832,000 in State contributions for construction projects.

• Fed

eral grants and contracts decreased by $745,660, or 12.6 percent. PELL and SEOG grants

decreased by $491,150 due to lower enrollments and decreased grant monies available to

students. Fiscal year 2015 was the last year of a multi-year Illinois Network Area Manufacturers

Grant, a decrease of $171,842. Fiscal year 2015 was the final year of the National Science

Foundation Grant, a decrease of $60,762.

• Gifts an

d contributions decreased by $357,876, or 39.4 percent. State contributions for

construction projects and the Community Instructional Center Capital Campaign ended in fiscal

year 2015.

Rev

enue by Source

Fiscal Year 2016

Property taxes

33.9%

Federal 15.1%

State & local

25.7%

Tuition & fees

16.6%

Auxiliary6.1%

Gifts and

contributions

1.6%

Other 0.7%

Interest

0.2%

12

Table of Contents

Fisc

al Year 2015 Compared to 2014

In fis

cal year 2015, total revenues (operating and non-operating) increased by $759,806, or 2.2 percent.

The following revenue categories increased in fiscal year 2015 over fiscal year 2014:

• Stat

e and local grants and contracts increased by $887,184, or 9.8 percent. The State of Illinois

contributed $832,000 for construction projects. The State payment on behalf of the College for

the State University Retirement System increased by $631,229, or 13.3 percent. Corporate

Personal Property Replacement Tax (CPPRT) increased by $90,319, or 7.5 percent. These increases

offset decreases in other state grants.

• Pro

perty tax revenues increased by $159,304, or 1.4 percent. For tax year 2014, the EAV of the

district decreased by 0.9 percent while the tax rate increased by 1.5 percent. Tax revenue for fiscal

year 2015 is 50 percent of tax year 2013 levy and 50 percent of tax year 2014 levy.

• Fed

eral grants and contracts increased by $77,397, or 1.3 percent. PELL grants decreased by

$244,418, or 4.9 percent. The Illinois Network Area Manufacturers Grant increased by $248,822,

or four times the FY2014 revenues, as final awards for the four-year grant were made. There were

small increases in the TRiO/Student Support Services grant, Small Business Development Center

grant, and the Carl Perkins Title II-C vocational grant.

• Net

tuition and fees increased by $257,289, or 5.3 percent. Credit hours decreased by 4,805 hours,

or 6.7 percent, but the tuition rate increased by $10.00 per credit hour, or 9.93 percent.

The

following revenue categories decreased from fiscal year 2015 over fiscal year 2014:

• Inv

estment revenues decreased by $19,830, or 34.5 percent. Interest rates remain flat and cash

reserves from previous years have been used for construction purposes.

• Aux

iliary revenue decreased by $141,352, or 6.2 percent. Bookstore sales decreased by $150,486,

or 6.7 percent, due to lower enrollments.

• Other operating revenues decreased by $300,859, or 47.6 percent.

• Other

non-operating revenues decreased by $159,327, or 14.9 percent. The capital campaign for

the Community Technology Center ended in fiscal year 2015, resulting in a decrease in revenues

from gifts and contributions.

13

Table of Contents

Operating Expenses

For the Year Ended June 30

Operating expense 2016

2015

Increase

(Decrease)

2016-2015

2014

Increase

(Decrease)

2015-2014

Instruction $ 11,785,294 $ 11,744,378 $ 40,916 $ 11,603,759 $ 140,619

Academic support 1,318,002 1,220,861 97,141 1,226,774 (5,913)

Student services 1,940,902 1,775,280 165,622 1,751,529 23,751

Public service 872,473 1,005,862 (133,389) 966,729 39,133

Auxiliary 2,383,384 2,733,107 (349,723) 2,815,069 (81,962)

Operations and

maintenance

2,799,815 2,367,544 432,271 2,689,336 (321,792)

Institutional support* 4,050,403 4,399,885 (349,482) 4,287,164 112,721

Scholarships and

grants

1,728,721 2,005,703 (276,982) 2,274,805 (269,102)

Depreciation 2,507,943

2,268,484 239,459

1,839,605

428,879

Total $ 29,386,937

$ 29,521,104

$ (134,167)

$ 29,454,770

$ 66,334

* without on-behalf SURS payment

Operating Expenses

Fiscal Year 2016

Instruction

40.2%

Institutional

support*

13.8%

Scholarships and

grants

5.9%

Auxiliary

8.1%

Public service

3.0%

Operations and

maintenance

9.5%

Student services

6.6%

Depreciation

8.5%

Academic

support

4.5%

*without on-behalf SURS payment

14

Table of Contents

Oper

ating Expense Comparison

Fiscal Years 2016 and 2015

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

2015

2016

*without on-behalf SURS payment

Fisc

al Year 2016 Compared to 2015

Total operating expenses for fiscal year 2016, after adjusting for the on-behalf SURS payment from the

State of Illinois, decreased by $134,167, or 0.5 percent, from fiscal year 2015.

• Instructional expenses increased by $40,916, or 0.3 percent. All categories of expenses were

similar to fiscal year 2015 spending levels.

• Aca

demic support which includes the library and learning technologies, had increased expenses

of $97,141, or 8.0 percent. Salary and benefit expenses declined but were offset with increased

expenses in contractual expenses and material and supply expenses. A new classroom

technology, AV over IP, was implemented on a small scale, which contributed to the increased

contractual expenses and material and supply expenses.

• Stu

dent services expenses increased by $165,622, or 9.3 percent. Salary and benefit expenses

made up the increase. This department is now fully staffed, which was not the case in fiscal year

2015.

• Pub

lic service expenses decreased by $133,389, or 13.3 percent. Salary and benefit expenses

decreased as a result of restructuring the department.

15

Table of Contents

• Aux

iliary expenses decreased by $349,723, or 12.8 percent, due to lower textbook purchases

caused by lower enrollments.

• Ope

rations and maintenance expenses increased by $432,271, or 18.3 percent. Furnishings for

the new Student Life Center added $111,300 and utilities increased by $113,300. Utility costs

decreased by $105,363 in FY2015, but are now back at FY2014 levels.

• Institutional support expenses decreased by $349,482, or 7.9 percent. Legal expenses decreased

by $253,000.

• Sch

olarships and grants decreased by $276,982, or 13.8 percent, due to a decrease in the PELL

and SEOG grant monies.

Fisc

al Year 2015 Compared to 2014

Tot

al operating expenses for fiscal year 2015, after adjusting for the on-behalf SURS payment from the

State of Illinois, decreased by $66,334, or 0.2 percent, from fiscal year 2014.

• Ins

truction expenses increased by $140,619, or 1.2 percent. Salaries and benefits increased

$398,569, or 3.8 percent, but were offset by decreases in materials and supplies of $215,297, or

32.9 percent, and fixed costs by $19,478, or 9.4 percent, all due to lower enrollments.

• Stud

ent services expenses increased by $23,751, or 1.4 percent. Institutional waivers through the

TRiO grant increased by $15,600, or 80.1 percent.

• Pub

lic service expenses increased by $39,133, or 4.0 percent. Salaries and benefits increased by

$34,027, or 5.1 percent.

• Oper

ations and maintenance expenses decreased by $321,792, or 12.0 percent. Salaries and

benefits increased by $36,400, or 4.4 percent. Contractual services, including asbestos

abatement, increased by $194,897, or 33.0 percent. Materials and supplies decreased by $84,767,

or 34.3 percent. Utility costs decreased by $105,363, or 13.9 percent, due to lower energy costs

and energy efficient improvements made by the College.

• Institutional support expense increased by $112,721, or 2.6 percent. Salaries and benefits

decreased by $109,834, or 4.1 percent. Contractual services, which include annual software

licensing and legal fees, increased by $123,897. Materials and supplies decreased by $156,669, or

23.1 percent. The reserve for uncollectible accounts, however, increased by $185,752.

• Scholarships and grants decreased by $269,102, or 11.8 percent. Federal PELL grants declined as

the number of students and credit hours declined.

• Auxi

liary expenses decreased by $81,962, or 2.9 percent, due to decreased purchases of

textbooks and supplies for resale in the Bookstore.

16

Table of Contents

The St

atement of Cash Flows

The sta

tement of cash flows (page 19) provides information about cash receipts and cash payments during

the year. The statement helps assess the College’s ability to generate net cash flows, its ability to meet its

obligations as they come due, and its need for external financing.

The

primary cash receipts from operating activities consist of tuition and fees and auxiliary enterprises.

Cash outlays include payment for salaries, benefits, supplies, and utilities.

Local property taxes are the primary source of non-operating revenues, followed by federal grants, and

then State and local contracts. These sources of revenue are categorized as non-operating even though

the College’s budget depends on them to continue the current level of operations.

The

main capital and related financing activities include $1,245,000 of debt service payments for the

Series 2011 Community College Bonds and $2,696,501 of capital asset purchases and construction.

Inv

esting activities reflect interest income earned on investments. Investments identified in the cash flow

statement include the purchase and redemption of certificates of deposit and investments in the Illinois

Funds.

Eco

nomic Factors That Will Affect the Future

As th

e administration looks to fiscal year 2017 and beyond, the following factors and analysis are relevant:

Pro

perty Taxes

The equ

alized assessed value (EAV) of the district increased in tax year 2015 after five years of declining

EAV. For tax year 2015, EAV increased by $17.9 million, or 0.5 percent. EAV reached a high point in tax

year 2009 at $3,198,644,044, or $18.6 million greater than tax year 2015 which is at $3,012,240,913. In

tax year 2015, the $16.6 million increase in farmland values and the $11.2 million in residential property

more than offset the $16.3 million decrease in commercial and industrial properties.

In D

ecember 2013, a negotiated agreement between Exelon LaSalle Generating Plant, the district’s largest

taxpayer, and the taxing bodies was signed, agreeing to the Plant’s EAV as follows:

Year

2013

2014

2015

2016

2017

2018

2019

EAV (in millions)

$485

$455

$435

$430

$435

$460

Equ

alization grants are provided to colleges with less than the statewide average local tax dollars available

per full-time equivalent. Institutions qualifying for such grants may also levy an additional tax. The College

has qualified for equalization and has been levying an additional tax since tax year 2000. In tax year 2015,

the “equity” tax was $12.63 of the total $37.60 tax levy. Although the College has no control over the

district’s EAV, it is important that the Board and administration focus their energies on strategies to

increase credit hours since eligibility for equalization results in over $3.0 million in state and local

revenues.

17

Table of Contents

Tui

tion and Fees

As is

often true, enrollments at community colleges follow the unemployment rates, increasing in times

of economic downturn and decreasing when the economy recovers. Illinois Valley Community College

experienced record enrollments in 2009 and 2010 when the local unemployment rate was over 11.0

percent, but as the economy has recovered, enrollments have declined.

The

College’s tuition and universal fee rate for fiscal year 2017 is $124.00, after a $5.00 per credit hour

increase from fiscal year 2016.

Capi

tal Projects

In 2

011, the State of Illinois released $23 million for IVCC’s Community Instructional Center construction

project. This project included the construction of a new Peter Miller Community Technology Center,

demolition of aged temporary buildings, and renovations to several other buildings on campus. IVCC

matched $7.6 million for the project. In January 2014, classes were held in the Technology Center and

Building J which were constructed during Phase 1 and Phase 2 of the three-phase project. Phase 3,

renovations to existing buildings, was open for students’ use in January 2016.

Projections

The

College’s administration believes it can maintain its strong financial position into the future.

Compensation and benefits comprise the largest portion of the College’s expenses. There are two

bargaining units representing faculty and service employees of the College whose contracts will expire in

2018. During 2015, a third bargaining unit representing approximately 40 support staff members was

formed. Negotiations for a collective bargaining agreement with this group started in October 2015. It is

necessary to keep salary increases in line with property tax and tuition revenues in order to have balanced

budgets for the foreseeable future.

The Strategic Enrollment Management Committee and Enrollment Task Force are cross-functional teams

charged with developing and implementing an enrollment management plan designed to achieve and

maintain optimal enrollment. The College engaged Interact Communications to help develop a marketing

plan intended to boost enrollments.

With decreases in enrollments and the district’s EAV, operating expenditures were reduced to balance

the general funds in fiscal year 2013. Since that time, total operating expenses have not increased.

Increases in salaries and benefits have been offset by reductions in force or reductions in other expense

line items. Any increases in expenses within the general funds will need to be covered by tuition increases.

Com

ponent Units

The

College has one component unit, the Illinois Valley Community College Foundation, which is a

discretely presented component unit because its resources directly benefit the College and its students.

The Foundation has a Board of Directors that are independent of the College.

18

Table of Contents

Reque

sts for Information

Furt

her information about the College is available at http://www.ivcc.edu

, by calling 815-224-2720, or by

writing to the Director of Community Relations, Marketing, and Development, Illinois Valley Community

College, 815 North Orlando Smith Road, Oglesby, IL 61348. Information about the College’s division of

Business Services and Finance can be found at

http://www.ivcc.edu/businessservices/ or by calling 815-

224-0415.

19

Table of Contents

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

STATEMENT OF NET POSITION

June 30, 2016

These financial statements should be read only in connection

with the accompanying summary of significant accounting policies

and notes to basic financial statements

Primary Component Unit

Institution Foundation

ASSETS

Current assets

Cash and cash equivalents 3,197,813$ 564,881$

Short-term investments 12,555,511 507,833

Accounts receivable, net of allowance $167,639

and unearned tuition $3,393,282 12,450,344 1,500

Pledges receivable - Foundation - 38,873

Accrued income - Foundation - 6,090

Inventories 814,524 -

Prepaid expenses

344,212 -

Total current assets

29,362,404 1,119,177

Noncurrent assets

Investments 248,000 -

Foundation investments - 3,595,499

Capital assets 100,282,347 -

Less allowance for accumulated depreciation

(38,107,755) -

Total noncurrent assets

62,422,592 3,595,499

Total assets

91,784,996

4,714,676

DEFERRED OUTFLOWS OF RESOURCES

Deferred outflows of resources

SURS pension contributions

51,813 -

Total assets and deferred outflows of resources

91,836,809

-

LIABILITIES

Current liabilities

Accounts payable 123,694 29,968

Accrued salaries 1,015,439 -

Other accrued expenditures 410,269 -

Unearned tuition and fees revenue 288,986 -

Capital lease payable - current portion 15,807 -

Bonds payable - current portion

265,000 -

Total current liabilities

2,119,195 29,968

Noncurrent liabilities

Deposits 146,767 -

Long-term portion of vacation accrual 96,627 -

Capital lease payable

41,182 -

Total noncurrent liabilities

284,576 -

Total liabilities

2,403,771 29,968

DEFERRED INFLOWS OF RESOURCES

Deferred property tax revenue

5,618,226 -

NET POSITION/NET ASSETS

Net investment in capital assets 62,174,592 -

Restricted for

Nonexpendable, permanently restricted - Foundation - 2,146,334

Expendable

Debt service 676,157 -

Loans 4,573,072 -

Capital projects 5,848,982 -

Liability, protection and settlement 1,765,543 -

Other 27,382 -

Temporarily restricted - Foundation - 1,754,200

Unrestricted

8,749,084 784,174

TOTAL NET POSITION/NET ASSETS

83,814,812$ 4,684,708$

20

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ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION

Year Ended June 30, 2016

These financial statements should be read only in connection

with the accompanying summary of significant accounting policies

and notes to basic financial statements.

Primary Component Unit

Institution Foundation

REVENUES

Operating revenues

Student tuition and fees, net of scholarships and allowances of $3,049,455 5,704,378$ -$

Gifts and contributions - 429,511

Auxiliary enterprises revenue 2,084,673 16,598

Other operating revenues

231,305 -

Total operating revenues 8,020,356 446,109

EXPENSES

Instruction 11,785,294 -

Academic support 1,318,002 -

Student services 1,940,902 -

Public service 872,473 -

Auxiliary enterprises 2,383,384 -

Operations and maintenance 2,799,815 -

Institutional support 10,510,561 189,435

Scholarships, grants, waivers, and other 1,728,721 355,236

Depreciation

2,507,943 -

Total operating expenses

35,847,095 544,671

Operating income (loss) (27,826,739) (98,562)

NONOPERATING REVENUES (EXPENSES)

State and local grants and contracts 8,802,272 -

Property taxes 11,627,742 -

Federal grants and contracts 5,186,832 -

Gifts and contributions 550,393 -

Investment income 78,364 7,288

Interest expense

(21,278) -

Net nonoperating revenues

26,224,325 7,288

Change in net position (1,602,414) (91,274)

NET POSITION

Net position - beginning of year

85,417,226 4,775,982

NET POSITION, END OF YEAR

83,814,812$ 4,684,708$

21

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ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

STATEMENT OF CASH FLOWS

Year Ended June 30, 2016

These financial statements should be read only in connection

with the accompanying summary of significant accounting policies

and notes to basic financial statements.

Primary

Institution

CASH FLOWS FROM OPERATING ACTIVITIES

Tuition and fees 5,370,299$

Payments to suppliers (12,296,169)

Payments to employees (14,803,832)

Auxiliary enterprise revenues 2,084,673

Other receipts

231,305

Net cash used in operating activities

(19,413,724)

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES

State and local grants and contracts 1,942,446

Federal grants and contracts 5,186,832

Student organization agency transactions -

Gifts and contributions 473,979

Property taxes

11,499,600

Net cash provided by noncapital financing activities

19,102,857

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES

Purchases of capital assets (2,696,501)

Proceeds from capital lease 72,438

Principal paid on capital debt (1,245,000)

Interest paid on capital debt

(21,278)

Net cash used in capital and related financing activities

(3,890,341)

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from sales and maturities of investments 4,250,000

Purchase of investments (1,538,031)

Income on investments

69,623

Net cash used in investing activities

2,781,592

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (1,419,616)

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR

4,617,429

CASH AND CASH EQUIVALENTS, END OF YEAR

3,197,813$

NON CASH INVESTING, CAPITAL, AND FINANCING ACTIVITIES:

Acquisition of capital assets with state capital contributions

419,611$

RECONCILIATION OF NET OPERATING REVENUES (EXPENSES) TO

NET CASH USED IN OPERATING ACTIVITIES

Operating loss (27,826,739)$

Adjustments to reconcile net loss to net cash

used in operating activities

Depreciation expense 2,507,943

State on-behalf payments for fringe benefits 6,460,158

Change in assets and liabilities

Summer tuition/expenses (153,755)

Receivables, net 24,285

Inventories 193,476

Prepaid expenditures (206,481)

Deferred outflows (51,813)

Accounts payable & other accrued expenditures (159,048)

Accrued salaries (267,425)

Other liabilities 46,306

Unearned revenue

19,369

NET CASH USED IN OPERATING ACTIVITIES

(19,413,724)$

22

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ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

NOTES TO BASIC FINANCIAL STATEMENTS

June 30, 2016

This in

formation is an integral part of the accompanying basic financial statements.

NOTE 1 –

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Illinois V

alley Community College District No. 513 (College) is a comprehensive community college serving

students of all ages with educational and service programs. The College offers two basic programs of

study:

1. Transfer pr

ograms which consist of the first two years of a typical four-year baccalaureate

degree; and

2. Career programs designed to lead to employment after one or two years of study.

The Coll

ege also offers assistance to business, industry, and local governmental agencies to help promote

the economic development of the Illinois Valley and surrounding area. As discussed below, the following

programs are also included in the College’s financial statements:

1. The Adul

t Learning Center, which offers Adult Basic Education (ABE), High School Equivalency

(HSE), and English as a Second Language (ESL) classes;

2. The Technical Preparation Program, which offers classroom training designed for recent high

school graduates who traditionally do not continue their education; and

3. The Busi

ness Services Center, including the Small Business Development Center, which provides

training for area businesses and offers general interest courses through continuing education.

The a

ccounting policies of the Illinois Valley Community College District conform to accounting principles

generally accepted in the United States of America as applicable to governments, as well as those

prescribed by the Illinois Community College Board (ICCB). The Governmental Accounting Standards

Board (GASB) is the accepted standard-setting body for establishing governmental accounting and

financial reporting principles. A summary of the more significant policies follows.

FINAN

CIAL REPORTING ENTITY

Accounting principles generally accepted in the United States of America require that the financial

statements of the reporting entity include: (1) the primary government, (2) organizations for which the

primary government is financially accountable, and (3) other organizations for which the nature and

significance of their relationship with the primary government are such that exclusion would cause the

reporting entity’s financial statements to be misleading or incomplete. These financial statements present

Illinois Valley Community College (the primary government) and its component unit. The component unit

discussed below is included in the District’s reporting entity because of their operational significance or

financial relationships with the District based on criteria provided in Governmental Accounting Standards

Board Statement No. 61.

Discretely Presented Component Unit: The Illinois Valley Community College Foundation (Foundation),

which is a separate not-for-profit entity, is a discretely presented component unit of the District. The

Foundation is governed by a board of directors that is independent of the District; however, the

23

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ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

NOTES TO BASIC FINANCIAL STATEMENTS

June 30, 2016

This info

rmation is an integral part of the accompanying basic financial statements.

Founda

tion’s resources directly benefit the District and its students. The District is also entitled to the

resources of the Foundation. Complete financial statements of the Foundation can be obtained from:

Illinois Valle

y Community College Foundation

815 N. Orlando Smith Road

Oglesby, IL 61348

During the fiscal year ended June 30, 2016, the Foundation distributed $310,251 to students attending

the College and gave $44,985 in direct support to the College. Complete financial statements for the

Foundation can be obtained from the Foundation.

The Fou

ndation is a private nonprofit organization that reports under FASB standards. As such, certain

revenue recognition criteria and presentation features are different from GASB revenue recognition

criteria and presentation features. No modifications have been made to the Foundation’s financial

information in the College’s financial reporting entity for these differences.

BASIS

OF ACCOUNTING

For financial reporting purposes, the College is considered a special-purpose government entity engaged

only in business-type activities. Accordingly, the College’s financial statements have been presented using

the economic resources measurement focus and the accrual basis of accounting. Under the accrual basis,

revenues are recognized when earned and expenses are recorded when an obligation has been incurred.

All significant intra-agency transactions have been eliminated. Non-exchange transactions, in which the

College receives value without directly giving equal value in return, include property taxes; federal, state,

and local grants; state appropriations; and other contributions. On an accrual basis, revenue from

property taxes is recognized in the period for which the levy is intended to finance. Revenue from grants,

state appropriations, and other contributions is recognized in the year in which all eligibility requirements

have been satisfied. Eligibility requirements include:

1. Timing re

quirements which specify the year when the resources are required to be used or

the fiscal year when the use is first permitted;

2. Matchin

g requirements in which the College must provide local resources to be used for a

specified purpose; and

3. Expenses in

which the resources are provided to the College on a reimbursement basis.

CLASSIFICATION OF REVENUES

Operat

ing revenue includes activities that have the characteristics of exchange transactions, such as

student tuition and fees, net of scholarship discounts and allowances, and sales and services of auxiliary

enterprises. Non-operating revenue includes activities that have the characteristics of non-exchange

transactions, such as local property taxes; state appropriations; most federal, state, and local grants and

contracts; federal appropriations; and gifts and contributions.

24

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ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

NOTES TO BASIC FINANCIAL STATEMENTS

June 30, 2016

This in

formation is an integral part of the accompanying basic financial statements.

CLASSIF

ICATION OF EXPENSES

Operati

ng expenses are those expenses incurred for the purpose of providing educational and operational

activities of the College, such as (1) salaries, (2) scholarships, (3) operations and maintenance, (4)

depreciation, and (5) expenses of auxiliary enterprises. Non-operating expenses include expenses such as

interest and amortization.

CASH AN

D CASH EQUIVALENTS

For pu

rposes of the statement of cash flows, the College considers all highly liquid investments with a

maturity of three months or less when purchased to be cash equivalents. The College does not include

restricted investments as cash equivalents.

INVESTM

ENTS

Certificat

es of deposit are stated at cost. Other investments are stated at fair value. Realized and

unrealized gains and losses are reflected in the appropriate statements of revenues, expenses, and

changes in net position. Those investments with maturities of one year or less are deemed short-term.

INVENTO

RIES

Inventories are stated at the lower of cost, determined on the first-in, first-out basis, or market.

RECEIV

ABLES

Accounts receivable includes uncollateralized student obligations, which generally require payment by

the first day of class unless a payment plan through a third party has been established. Accounts receivable

are stated at the invoice amount.

Accou

nt balances unpaid at the end of the term are considered delinquent. Payments of accounts

receivable are applied to the specific invoices identified on the student’s remittance advice or, if

unspecified, to the earliest unpaid invoices.

The carr

ying amount of accounts receivable is reduced by a valuation allowance that reflects

management’s best estimate of amounts that will not be collected. The allowance for doubtful accounts

is based on management’s assessment of the collectability of specific student accounts and the aging of

the accounts receivable. If the actual defaults are higher than the historical experience, management’s

estimates of the recoverability of amounts due could be adversely affected.

Accou

nts receivable also includes outstanding balances due from federal and state funding sources and

other miscellaneous items.

25

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ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

NOTES TO BASIC FINANCIAL STATEMENTS

June 30, 2016

This in

formation is an integral part of the accompanying basic financial statements.

UNEARN

ED TUITION REVENUES

Tuition collected prior to June 30 for the subsequent fall semester and the portion of tuition collected for

the summer sessions that is not earned as of June 30 is recorded as unearned revenue at June 30 and

recognized as revenue in the following year. Receivables are reflected net of billed tuition related to the

subsequent fall semester and portion of summer sessions, and unearned revenue is not recognized for

fall semester and the portion of summer session after June 30.

SCHOL

ARSHIP DISCOUNTS AND ALLOWANCES

Student tuition and fee revenues, and certain other revenues from students, are reported net of

scholarship discounts and allowances in the statement of revenues, expenses, and changes in net position.

Scholarship discounts and allowances are the difference between the stated charge for goods and services

provided by the College, and the amount that is paid by students and/or third parties making payments

on the student’s behalf.

NET POSITION

The Colleg

e’s net position is classified as follows:

Net inve

stment in capital assets – This represents the College’s total investment in capital assets,

net of accumulated depreciation, and related debt.

Restri

cted net position – This includes resources that the College is legally or contractually

obligated to spend in accordance with restrictions imposed by external third parties. When both

restricted and unrestricted resources are available for use, it is the College’s policy to use

restricted resources first, then unrestricted resources as needed.

Unrest

ricted net position – This includes resources derived from student tuition and fees, state

appropriations, and sales and services of educational departments and auxiliary enterprises.

These resources are used for transactions relating to the educational and general operations of

the College and may be used at the discretion of the governing board to meet current expenses

for any purpose.

CAPITAL

ASSETS

Capital ass

ets include property, plant equipment, and infrastructure assets, such as roads and sidewalks.

Capital assets are defined by the College as assets with an initial cost of $5,000 or more with a useful life

greater than one year. Such assets are recorded at cost at the date of acquisition. Donated capital assets

are recorded at estimated fair market value at the date of donation. The costs of normal maintenance

and repairs that do not add to the value of the asset or materially extend the asset’s life are not capitalized.

26

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ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

NOTES TO BASIC FINANCIAL STATEMENTS

June 30, 2016

This in

formation is an integral part of the accompanying basic financial statements.

The Co

llege records depreciation on all capital assets in accordance with GASB Statement No. 35.

Depreciation is computed using the straight-line method over the asset’s estimated life. The estimated

useful lives of the major classes of depreciable assets are as follows:

Buildings 50 years

Site Improvements 15 years

Equipment 8 years

Library books 8 years

Technology 4 years

DEFERRED

OUTFLOWS/INFLOWS OF RESOURCES

The st

atement of net position includes a separate section for deferred outflows of resources. This separate

financial statement element, deferred outflows of resources, represents a consumption of net position

that applies to a future period(s) and so will not be recognized as an outflow of resources (expense) until

then. The statement of net position also includes a separate section for deferred inflows of resources. This

separate financial statement element, deferred inflows of resources, represents an acquisition of net

position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue)

until that time.

COMPE

NSATED ABSENCES

Compensated absences are those absences for which employees will be paid, such as vacations. A liability

for compensated absences that are attributable to services already rendered and that are not contingent

on a specific event that is outside the control of the College and its employees is accrued as employees

earn the rights to the benefits. Compensated absences that relate to future services or that are contingent

on a specific event that is outside the control of the College and its employees are accounted for in the

period in which such services are rendered or in which such events take place. Vacation leave can be

accumulated up to 160 hours. Sick leave does not vest and is accumulated at a rate of 12 days per year.

All vacation leave which is earned but not used during the year is reported as an expense and as a liability.

USE OF ESTIMATES

The pre

paration of financial statements in conformity with accounting principles generally accepted in the

United States of America requires management to make estimates and assumptions that affect the

reported amounts of assets and liabilities at the date of the financial statements and the reported

amounts of revenues and expenses during the reporting period. Actual results could differ from those

estimates.

27

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ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

NOTES TO BASIC FINANCIAL STATEMENTS

June 30, 2016

This in

formation is an integral part of the accompanying basic financial statements.

PENSIO

NS

For pu

rposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of

resources related to pensions, and pension expense, information about the plan net position of the State

Universities Retirement System (SURS or the System) and additions to/deductions from SURS’ plan net

position has been determined on the same basis as they are reported by SURS. For this purpose, benefit

payments (including refunds of employee contributions) are recognized when due and payable in accordance

with the benefit terms. Investments are reported at fair value.

For the purposes of financial reporting, the State of Illinois and participating employers are considered to be

under a special funding situation. A special funding situation is defined as a circumstance in which a non-

employer entity is legally responsible for making contributions directly to a pension plan that is used to

provide pensions to the employees of another entity or entities and either (1) the amount of the contributions

for which the non-employer entity is legally responsible is not dependent upon one or more events unrelated

to pensions or (2) the non-employer is the only entity with a legal obligation to make contributions directly

to a pension plan. The State of Illinois is considered a non-employer contributing entity. Participating

employers are considered employer contributing entities.

28

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ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

NOTES TO BASIC FINANCIAL STATEMENTS

June 30, 2016

This

information is an integral part of the accompanying basic financial statements.

NOTE 2

– DEPOSITS AND INVESTMENTS

The Boa

rd of Trustees has authorized the College to invest funds in accordance with the Illinois

Community College Act and the Investment of Public Funds Act. In general, the College may invest in

obligations of the United States of America or its agencies (or guaranteed by the full faith and credit of

same) and certain time deposits and short-term obligations as defined in the Investment of Public Funds

Act. At year-end, the carrying amount of the College’s unrestricted cash and cash equivalents on deposit

was $3,197,813, including cash on hand of $3,252. The carrying amount of the College’s certificates of

deposit, included in short-term investments, was $4,744,445 at June 30, 2016. As of June 30, 2016, all of

these certificates of deposit were either collateralized or covered by FDIC insurance, except for $1,141 at

Marseilles Bank.

The Col

lege had $8,056,531 invested with the Illinois Funds at June 30, 2016. The State Treasurer

maintains the Illinois Funds Money Market at cost (a 2a7 like pool) through daily adjustment in the interest

earnings. The State Treasurer also maintains the average duration of the pool at less than 25 days. The

fair value of the College’s investment in the funds is the same as the value of the pool shares. The pool is

audited annually by an outside independent auditor and copies of the report are distributed to

participants. The pool maintains a Standard and Poor’s AAAm rating. The College’s investments in the

Illinois Funds are not required to be categorized because these are not securities. The relationship

between the College and the investment agent is a direct contractual relationship and the investments

are not supported by a transferable instrument that evidences ownership or creditorship.

All f

unds deposited in the pool are classified as investments, even though some could be withdrawn on a

day’s notice. Although not subject to direct regulatory oversight, the fund is administered in accordance

with the provisions of the Illinois Public Funds Investment Act, 30 ILCS 235.

Inte

rest Rate Risk. The College does not have a formal investment policy that limits maturities as a means

of managing its exposure to fair value losses arising from increasing interest rates.

Cred

it Risk. The College’s investment policy is to apply the prudent person rule: Investments are made as

a prudent person would be expected to act, with discretion and intelligence, to conform with legal

requirements, seek reasonable income, preserve capital, maintain liquidity, and, in general, avoid

speculative instruments.

Cust

odial Credit Risk – Deposits. Custodial credit risk is the risk that in the event of a bank failure, the

College’s deposits may not be returned to it. The College’s deposit policy allows that funds on deposit in

excess of FDIC limits must be secured by some form of collateral, witnessed by a written agreement and

held at an independent third party institution in the name of the College

Concentration of Credit Risk. More than 5 percent of the College’s investments are in certificates of

deposit at the following banks:

Bank

Centrue

Bank

LaSalle State

Bank

Marseilles

Bank

Multi-Bank

Securities

Percentage 7.8% 7.8% 9.8% 11.7%

29

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ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

NOTES TO BASIC FINANCIAL STATEMENTS

June 30, 2016

This

information is an integral part of the accompanying basic financial statements.

NOTE 3

– PROPERTY TAXES

The C

ollege’s property taxes are levied each calendar year on all taxable real property located in the

District. Property taxes are recorded on an accrual basis of accounting. Accordingly, at June 30, 2016, the

District has $5,618,226 of deferred property tax revenue. Pursuant to a Board of Trustee’s resolution,

property tax levies passed in December 2014 and December 2015 were allocated at 50 percent for each

of the two years after the levy year. Taxes must be levied by the last Tuesday in December for the following

collection year. The levy becomes an enforceable lien against the property as of January 1 of the levy year.

The most recent levy, tax year 2015, was adopted in December 2015 and will be collected in the College’s

2017 fiscal year.

Tax rat

es permitted by the Illinois Community College Act and by local referendum, as well as actual rates

levied per $100 of assessed valuation, are as follows:

Purpose

Limit

2015 Levy

2014 Levy

Educational .1300 .1300 .1300

Operations and Maintenance .0400 .0400 .0400

Protection, Health and Safety .0500 .0500 .0500

Bond and Interest None .0089 .0423

Liability, Protection and Settlement None .0105 .0000

Audit .0050 .0012 .0013

Additional tax .1263 .1263 .0981

Social Security None .0091 .0090

30

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ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

NOTES TO BASIC FINANCIAL STATEMENTS

June 30, 2016

This

information is an integral part of the accompanying basic financial statements.

NOTE 4

– CHANGES IN CAPITAL ASSETS

Capital as

set changes are as follows:

Balance

July 1, 2015

Additions

Deletions

Balance

June 30, 2016

Non-depreciable

Land

$ 1,361,598

$ -

$ 1,361,598

Construction in progress

732,549

250,751

732,549

250,751

Total non-depreciable

2,094,147

250,751

732,549

1,612,349

Depreciable

Site improvements

8,035,437

124,070

-

8,159,507

Buildings

71,180,598

2,737,129

-

73,917,727

Equipment

5,241,395

64,517

-

5,305,912

Library books

1,288,543

-

1,288,543

Proprietary equipment

7,077,209

72,438

5,009

7,144,638

Technology

2,673,526

180,145

-

2,853,671

Total depreciable

95,496,708

3,178,299

5,009

98,669,998

Total $97,590,855 $ 3,429,050 $ 737,558 $ 100,282,347

Accu

mulated depreciation changes are as follows:

Balance

July 1, 2015

Additions

Deletions

Balance

June 30, 2016

Depreciable

Site improvement

$ 5,686,676

$ 289,197

$ -

$ 5,975,873

Buildings

16,275,247

1,540,688

-

17,815,935

Equipment

3,673,285

270,575

-

3,943,860

Library books

1,288,543

-

1,288,543

Proprietary equipment

7,068,853

21,910

5,009

7,085,754

Technology

1,612,217

385,573

-

1,997,790

Total $ 35,604,821 $ 2,507,943 $ 5,009 $ 38,107,755

31

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ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

NOTES TO BASIC FINANCIAL STATEMENTS

June 30, 2016

This information is an integral part of the accompanying basic financial statements.

NOTE 5 –LONG-TERM DEBT

Balance

July 1, 2015

Additions

Payments

Balance

June 30, 2016

Community College Bonds,

Series 2011

$ 1,510,000

$ -

$ 1,245,000

$ 265,000

Community College Bonds, Series 2011

The Board of Trustees authorized the College to issue general obligations bonds to retire $5,000,000 in

debt certificates. The bonds are being retired by property taxes levied specifically for such purposes.

The bonds were issued as interest bearing bonds with the following interest rate schedule (calendar year):

2016 2.50%

At June 30, 2016, the annual requirements to retire the Community College Bonds, Series 2011 are as

follows:

Year Ending June 30

Interest Rate

Principal Due

Interest Due

Total

2017

2.50%

$ 265,000

$ 3,312

$ 268,312

The College’s legal debt limit is $86,601,926.

Capital Lease Obligations

The College entered into a capital lease agreement for the purchase of two Ford Starcraft 15 passenger

shuttles. As of June 30, 2016 the equipment total was $72,438 with accumulate depreciation of $18,110.

The capital lease agreement bears an interest rate of 4.5 percent.

At June 30, 2016, the future minimum lease obligations and the net present value of these minimum

lease payments were as follows:

Fiscal Year

Lease Payment

Implied Interest

Present Value

2017

$17,132

$1,325

$15,807

2018

8,500

1,249

7,251

2019

23,262

432

22,830

2020

11,362

260

11,100

32

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ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

NOTES TO BASIC FINANCIAL STATEMENTS

June 30, 2016

This

information is an integral part of the accompanying basic financial statements.

NOTE 6

– PENSION PLAN

Gener

al Information about the Pension Plan

Plan D

escription. The College contributes to the State Universities Retirement System of Illinois, a cost-sharing

multiple-employer defined benefit plan with a special funding situation whereby the State of Illinois (the

State) makes substantially all actuarially determined required contributions on behalf of the participating

employers. SURS was established July 21, 1941 to provide retirement annuities and other benefits for staff

members and employees of state universities, certain affiliated organizations, and certain other state

educational and scientific agencies and for survivors, dependents, and other beneficiaries of such employees.

SURS is considered a component unit of the State of Illinois’ financial reporting entity and is included in the

state’s financial reports as a pension trust fund. SURS is governed by Chapter 40, Act 5, Article 15 of the Illinois

Compiled Statutes. SURS issues a publicly available financial report that includes financial statements and

required supplementary information. That report may be obtained by accessing the website

at www.SURS.org

.

Bene

fits Provided. A traditional benefit plan was established in 1941. Public Act 90-0448 enacted effective

January 1, 1998, established an alternative defined benefit program known as the portable benefit package.

The traditional and portable plan Tier 1 refers to members that began participation prior to January 1, 2011.

Public Act 96-0889 revised the traditional and portable benefit plans for members who begin participation on

or after January 1, 2011, and who do not have other eligible Illinois reciprocal system services. The revised

plan is referred to as Tier 2. New employees are allowed six months after their date of hire to make an

irrevocable election. A summary of the benefit provisions as of June 30, 2015 can be found in the System’s

comprehensive annual financial report (CAFR) Notes to the Financial Statements.

Contributions. The State of Illinois is primarily responsible for funding the System on behalf of the individual

employers at an actuarially determined amount. Public Act 88-0593 provides a Statutory Funding Plan

consisting of two parts: (i) a ramp-up period from 1996 to 2010 and (ii) a period of contributions equal to a

level percentage of the payroll of active members of the System to reach 90% of the total Actuarial Accrued

Liability by the end of Fiscal Year 2045. Employer contributions from “trust, federal, and other funds” are

provided under Section 15-155(b) of the Illinois Pension Code and require employers to pay contributions

which are sufficient to cover the accruing normal costs on behalf of applicable employees. The employer

normal cost for fiscal year 2015 and 2016 respectively, was 11.71 percent and 12.69 percent of employee

payroll. The normal cost is equal to the value of current year’s pension benefit and does not include any

allocation for the past unfunded liability or interest on the unfunded liability. Plan members are required to

contribute 8.0% of their annual covered salary. The contribution requirements of plan members and

employers are established and may be amended by the Illinois General Assembly.

Parti

cipating employers make contributions toward separately financed specific liabilities under Section

15.139.5(e) of the Illinois Pension Code (relating to contributions payable due to the employment of “affected

annuitants” or specific return to work annuitants) and Section 15.155(g) (relating to contributions payable

due to earning increases exceeding 6% during the final rate of earnings period).

33

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ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

NOTES TO BASIC FINANCIAL STATEMENTS

June 30, 2016

This

information is an integral part of the accompanying basic financial statements.

NOTE

6 – PENSION PLAN (continued)

Pens

ion Liabilities, Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources

Related to Pensions

Net Pension Liability

At June 30, 2015, SURS reported a net pension liability (NPL) of $23,756,361,087. The net pension liability was

measured as of June 30, 2014.

Emplo

yer Proportionate Share of Net Pension Liability

There is no proportionate share of the net pension liability to be recognized for the College. The proportionate

share of the State’s net pension liability associated with the College is $76,247,693 or 0.3210 percent. This

amount should not be recognized in the financial statement. The net pension liability and the total pension

liability as of June 30, 2015 was determined based on the June 30, 2014 actuarial valuation rolled forward.

The basis of allocation used in the proportionate share of net pension liability is the actual reported

pensionable contributions made to SURS during fiscal year 2015.

Pens

ion Expense

At June 30, 2015 SURS reported a collective net pension expense of $1,994,587,170.

Employer Proportionate Share of Pension Expense

The employer proportionate share of collective pension expense should be recognized similarly to on behalf

payments as both revenue and matching expenditure in the financial statements. The basis of allocation used

in the proportionate share of collective pension expense is the actual reported pensionable contributions

made to SURS during fiscal year 2015. As a result, the College recognized on-behalf revenue and pension

expense of $6,401,766 for the fiscal year ended June 30, 2016.

Defe

rred Outflows of Resources and Deferred Inflows of Resources Related to Pensions

Deferred outflows of resources are the consumption of net position by the system that is applicable to future

reporting periods.

SURS

Collective Deferred Outflows and Deferred Inflows of Resources by Sources

Deferred Outflows

of Resources

Deferred Inflows

of Resources

Difference between expected and actual experience

$ 27,312,043

$ -

Changes in assumption

609,393,909

-

Net difference between projected and actual earnings

on pension plan investments

593,840,642

953,329,464

Total $1,230,546,594 $953,329,464

34

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ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT NO. 513

NOTES TO BASIC FINANCIAL STATEMENTS

June 30, 2016

This

information is an integral part of the accompanying basic financial statements.

SURS

Collective Deferred Outflows and Deferred Inflows of Resources by Year to be recognized in Future

Pension Expenses.

Year Ending June 30

Net Deferred Outflows of Resources

2016

$ 154,951,326

2017

118,957,720

2018

(145,152,075)

2019

148,460,159

Total

$ 277,217,130

Empl

oyer Deferral of Fiscal Year 2016 Pension Expense

Your

employer paid $51,813 in federal, trust, or grant contributions for the fiscal year ended June 20, 2016.

These contributions were made subsequent to the pension liability date of June 30, 2015 and are

recognized as Deferred Outflows of Resources as of June 30, 2016.

Assu

mptions and Other Inputs

Actuarial assumptions. The actuarial assumptions used in the June 30, 2015 valuation were based on the

results of an actuarial experience study for the period June 30, 2010 – 2014. The total pension liability in the

June 30, 2015 actuarial valuation was determined using the following actuarial assumptions, applied to all

periods included in the measurement:

Inflat

ion

2.75

percent

Salary increases

3.75

to 12.00 percent, including inflation

Investment rate of return

7.25 percent beginning with the actuarial

valuation as of June 30, 2014

Mort

ality rates were based on the RP2000 Combined Mortality Table, projected with Scale AA to 2017, sex-

distinct, with rates multiplied by 0.80 for males and 0.85 for females.

The l

ong-term expected rate of return on pension plan investments was determined using a building-block

method in which best-estimate ranges of expected future real rates of return (expected returns, net of

pension plan investment expense and inflation) are developed for each major asset class. These ranges are

combined to produce the long-term expected rate of return by weighting the expected future real rates of

return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic

real rates of return were adopted by the plan’s trustees after considering input from the plan’s investment

consultant(s) and actuary(s). For each major asset class that is included in the pension plan’s target asset

allocation as of June 30, 2015, these best estimates are summarized in the following table:

35

Table of Contents

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

NOTES TO BASIC FINANCIAL STATEMENTS

June 30, 2016

This

information is an integral part of the accompanying basic financial statements.

NOTE

6 – PENSION PLAN (continued)

Long-Term Expected

Asset Class Target Allocation Real Rate of Return

U.S. Equity 23% 5.77%

Private Equity 6% 9.23%

Non-U.S. Equity 19% 6.69%

Global Equity 8% 6.51%

Fixed Income 19% 1.12%

Treasury-Inflation Protected Securities 4% 1.22%

Emerging Market Debt 3% 4.61%

Real Estate REITS 4% 5.85%

Direct Real Estate 6% 4.37%

Commodities 2% 4.06%

Hedged Strategies 5% 3.99%

Opportunity Fund 1% 6.80%

Total 100% 5.02%

Inflation 3.00%

Expected Arithmetic Return 8.02%

Disco

unt Rate. A single discount rate of 7.120 percent was used to measure the total pension liability. This

single discount rate was based on an expected rate of return on pension plan investments of 7.250 percent

and a municipal bond rate of 3.80 percent (based on the weekly rate closest to but not later than the

measurement date of the 20-Year Bond Buyer Index as published by the Federal Reserve). The projection of

cash flows used to determine this single discount rate were the amounts of contributions attributable to

current plan members and assumed that plan member contributions will be made at the current contribution

rate and that employer contributions will be made at rates equal to the statutory contribution rates under

the System’s funding policy. Based on these assumptions, the pension plan’s fiduciary net position and future

contributions were sufficient to finance the benefit payments through the year 2072. As a result, the long-

term expected rate of return on pension plan investments was applied to projected benefit payments through

the year 2072, and the municipal bond rate was applied to all benefit payments after that date.

Sensi

tivity of the System’s Net Pension Liability to Changes in the Discount Rate. Regarding the sensitivity of

the net pension liability to changes in the single discount rate, the following presents the plan’s net pension

liability, calculated using a single discount rate of 7.12 percent, as well as what the plan’s net pension liability

would be if it were calculated using a single discount rate that is 1-percentage-point lower or 1-percentage-

point higher:

1% Decrease

Current Single Discount

Rate Assumption

1% Increase

6.12%

7.12%

8.12%

$28,929,333,917

$23,756,361,087

$19,470,982,362

Addit

ional information regarding the SURS basic financial statements including the Plan Net Position can be

found in the SURS comprehensive annual financial report by accessing the website at www.SURS.org.

36

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ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

NOTES TO BASIC FINANCIAL STATEMENTS

June 30, 2016

This information is an integral part of the accompanying basic financial statements.

NOTE 7 – RISK MANAGEMENT

The College is exposed to various risks of loss related to torts; theft of, damage to, and destruction of

assets; errors and omissions; injuries to employees; and natural disasters. To cover these risks, the College

has purchased commercial insurance that is accounted for in the Liability, Protection and Settlement Fund.

In addition, the College may levy property taxes to provide for any costs not covered under the College’s

insurance. The College had no significant reductions in insurance coverage from the prior year. During the

past three years, there have been no settlements that exceeded insurance coverage.

NOTE 8 – POST-EMPLOYMENT HEALTH CARE BENEFITS

Under an Early Retirement Incentive Plan which expired June 30, 2005, the College elected to provide

certain health care benefits for retirees for ten years after their retirement date or until they became

eligible for Medicare. Retiree participants electing these benefits are required to contribute monthly

amounts, depending on the level of coverage desired. The premium rates for retirees are based on the

claims costs of retirees. There are no blended premium rates of current employees and retirees. At June

30, 2016 there was one retiree participant on the plan. This person will never be eligible for Medicare.

The contributions made by the retiree participant during fiscal year 2016 totaled $4,793. At June 30, 2016,

the College has estimated the cost of future retirees’ health benefits to be $63,930 and has a reserve to

cover these costs.

FY2017

$ 5,083

FY2018

5,337

FY2019

5,604

FY2020

5,884

FY2021

6,178

FY2022

6,487

FY2023

6,811

FY2024

7,151

FY2025

7,510

FY2026

7,885

Total

$63,930

The College also provides an opportunity for retirees to participate in the group health insurance program

until they become Medicare eligible. However, these retiree participants pay their entire premium with

no cost to the College. At June 30, 2016, no retirees were participating in this option.

37

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ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

NOTES TO BASIC FINANCIAL STATEMENTS

June 30, 2016

This info

rmation is an integral part of the accompanying basic financial statements.

NOTE 9 –

COMMITMENTS AND CONTINGENCIES

The College h

as received a number of Federal and State grants for specific purposes which are subject to

review and audit by grantor agencies. Such audits may result in requests for reimbursement to granting

agencies for expenditures disallowed under the terms of the grants. Based on prior experience, College

management believes that such disallowances, if any, will not be significant.

Commitments for the purchase of property, plant, and equipment at June 30, 2016 totaled $1,410,745.

Illinois Valley Community College

Commitments for the Purchase of Property & Equipment

Basalay, Cary & Alstadt Architects

Building A HVAC Upgrade

$ 12,220

Basalay, Cary & Alstadt Architects

Building B HVAC Upgrade

16,279

John's Service & Sales, Inc.

Building B HVAC Upgrade

824,328

Demonica Kemper Architects

Lecture Hall Renovations

20,069

Vanguard Contractors, Inc.

Lecture Hall Renovations

456,453

Demonica Kemper Architects

Building D HVAC Upgrade

76,280

Bound Tree Medical

Adult Manikin

5,116

Total Commitments

$ 1,410,745

NOTE 10 – COMPENSATED ABSENCES

As of June 30, 2016, employees had earned but not taken annual vacation leave totaling $289,881 at

salary rates in effect at the end of the year. Changes in the College’s compensated absences are as

follows.

Balance

July 1, 2015

Additions

Deletions

Balance

June 30, 2016

Due Within

One Year

Accrued Vacation

$ 276,993

$335,949

$323,061

$289,881

$193,254

38

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ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

NOTES TO BASIC FINANCIAL STATEMENTS

June 30, 2016

This information is an integral part of the accompanying basic financial statements.

39

NOTE 11 – LEASES

Lessor

The College leases commercial space to the University of Illinois Extension Service. The lease term ends

on June 20, 2017. The lease requires quarterly payments of $4,551. The leased space is 1,300 sq. ft. in

Building C.

At Ju

ne 30, 2016, future minimum lease payments are $18,204 for fiscal year 2017.

Lessee

The College has various operating lease agreements for equipment and facilities. Rentals under these

agreements were $193,086 for the year ended June 30, 2016.

Sign

ificant lease commitments are as follows:

The College entered into a lease with the City of Ottawa for facility space for the period July 1, 2015

through June 30, 2020 with an annual lease payment of $132,000. Future lease commitments are as

follows:

FY2017

FY2018

FY2019

FY2020

Total

$132,000

$143,000

$154,000

$583,000

The

College entered into a lease agreement with Marco, Inc. (formerly Illinois Valley Business Equipment)

for copy machines. Lease payments are based on usage and are estimated to be $40,000 per year.

The

college entered into a lease agreement with Central Illinois Trucks for two Volvo Tractors for a period

from February 1, 2016 to January 31, 2021. Annual lease payments are $41,640 per year.

NOTE

12 – COMPONENT UNIT

The Foundation maintains its accounts in accordance with the principles and practices of fund accounting.

Fund accounting is the procedure by which resources for various purposes are classified for accounting

purposes in accordance with activities or objectives specified by donors. Accordingly, net assets and

changes therein are classified as follows:

Permanently Restricted Net Assets – Net assets subject to donor-imposed stipulations that they be

maintained permanently by the Foundation. Generally, the donors of these assets permit the Foundation

to use all or part of the income earned on related investments for general or specific purposes.

Temporarily Restricted Net Assets – Net assets subject to donor-imposed stipulations that will be met by

actions of the Foundation and/or passage of time.

Unrestricted Net Assets – Net assets not subject to donor-imposed restrictions.

Reven

ues are reported as increases in unrestricted net assets classification unless use of the related assets

is limited by donor-imposed restrictions. The contributions, including unconditional promises to give, are

39

Table of Contents

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

NOTES TO BASIC FINANCIAL STATEMENTS

June 30, 2016

This in

formation is an integral part of the accompanying basic financial statements.

recogn

ized as revenue in the period received. Conditional promises to give are not recognized as revenue

until the conditions on which they depend are substantially met. Contributions for in-kind gifts from

outside sources are not recorded in the Foundation’s financial records, but are accounted for and

acknowledged separately. Investments are reported at fair value based upon quoted market prices.

Expenses are reported as decreased in unrestricted net assets as appropriate. Gains and losses on

investments and other assets or liabilities are reported as increases or decreased in unrestricted net assets

unless their use is restricted by explicit donor stipulation or by law.

Investments

Apart from the Community Technology Center assets, approximately 85 percent of the Foundation’s

assets are administered through two investment agency accounts with Hometown National Bank Trust

Department. The diversified investment portfolio is invested in equities (stocks and stock mutual funds)

and fixed income securities (bonds, mutual funds, money market accounts, and certificates of deposit).

The other approximately 15 percent of the Foundation’s assets are invested in two annuities with Jackson

National Life Insurance Company and in State Farm Mutual Funds (approximately 1.7 percent), the donor-

specified investment administrators.

The comp

osition of the Foundations’ assets at June 30, 2016 is as follows:

Agency

Account

Total

Assets

Cash and Equivalents

14.1%

12.0%

Fixed Income

56.2%

53.1%

Equities

29.7%

34.9%

Investment Activities

The statements of activities reflect net investment income and unrealized investment income (loss) and

unrealized investment gain (loss). The components of investment income for the year ended on June 30,

2016 are as follows:

Interest

$ 41,333

Dividends

95,439

Realized gain (loss)

(14,260)

Net investment income

122,512

Unrealized gain (loss)

(115,224)

Total income

$ 7,288

Defici

ency in Donor-Restricted Endowment Fund

Withd

rawals have outpaced investment earnings in the Ponti Estate annuities. The proceeds from the

estate were invested in annuities specified by the donor. The initial amount invested is considered

permanently restricted. The amount by which the donor-imposed restriction exceeds fair value is $38,270

and $41,097 at June 30, 2016 and 2015, respectively.

40

Table of Contents

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

NOTES TO BASIC FINANCIAL STATEMENTS

June 30, 2016

This

information is an integral part of the accompanying basic financial statements.

Prim

arily due to market value fluctuations at June 30, 2016, there are nine additional endowed funds in

which the initial donor-imposed restriction exceeds fair value. The amount by which the donor-imposed

restrictions exceed fair value is $9,328 at June 30, 2016.

NOTE 13 – NEW PRONOUNCEMENTS

GASB

Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than

Pensions addresses the accounting and financial reporting by state and local governments for

postemployment benefits other than pensions (other postemployment benefits or OPEB). It also improves

information provided by state and local governmental employers about financial support for OPEB that is

provided by other entities. The provisions in Statement 75 are effective for fiscal years beginning after

June 15, 2017. The College has not determined the effect of this Statement.

GASB

Statement No. 77, Tax Abatement Disclosures requires governments that enter into tax abatement

agreements to disclose the certain information about the agreements to allow readers of the financial

statements to better access the revenue-generating capacity of the government. The provisions in

Statement No. 77 are effective for reporting periods beginning after December 15, 2015. The College has

not determined the effect of this Statement.

GASB Statement No. 80, Blending Requirements for Certain Component Units – an amendment of GASB

Statement No. 14 amends the blending requirements by requiring the blending of a component unit

incorporated as a not-for-profit corporation in which the primary government is the sole corporate

member. The requirements of this Statement are effective for reporting periods beginning after June 15,

2016. The College has not determined the effect of this Statement.

GASB

Statement No. 82, Pension Issues – an amendment of GASB Statements No. 67, No. 68, and No. 73

addresses issues regarding the presentation of payroll related measures in requirement supplementary

information, the selection of assumptions and the treatment of deviations from the guidance in an

Actuarial Standard of Practice for financial reporting purposes, and the classification of payments made

by employers to satisfy employee (plan member) contribution requirements. The requirements of this

Statement are effective for reporting periods beginning after June 15, 2017. The College has not

determined the effect of this Statement.

41

Table of Contents

This information is an integral part of the accompanying basic financial statements.

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

REQUIRED SUPPLEMENTARY INFORMATION

June 30, 2016

SURS Pension Information for the Year Ended June 30, 2016

Covered Payroll

The definition of covered payroll has been redefined in GASB Statement Number 82, Pension Issues – an

amendment of GASB Statements Number 67, Number 68, and Number 73. Below are the definitions

from the glossaries of each statement.

GASB 67 Covered-Employee Payroll. The payroll of employees that are provided with pensions through

the pension plan.

GASB 82 Covered Payroll. All elements included in compensation paid to active employees on which

contributions to a pension plan are based.

Schedule of Share of Net Pension Liability

FY2014

FY2015

Proportion Percentage of the Collective Net

Pension Liability

0%

Proportion Amount of the Collective Net

Pension Liability

0%

Portion of Nonemployer Contributing

Entities’ Total Proportion of Collective Net

Pension Liability associated with Employer

$70,997,465

$76,247,693

Total

$70,997,465

$76,247,693

Employer DB Covered Payroll

$11,916,639

$11,784,742

Proportion of Collective Net Pension

Liability associated with the Employer as a

percentage of DB Covered Payroll

595.78%

647.00%

SURS Plan Net Position as a Percentage of

Total Pension Liability

44.39%

42.37%

Schedule of Contributions

FY2014

FY2015

FY2016

Federal, Trust, Grant and Other

contributions

$53,109

$52,539

$51,813

Contribution in relation to

required contribution

$53,109

$52,539

$51,813

Contribution deficiency (excess)

$0

Employer Covered Payroll

$445,922

$448,672

$408,299

Contributions as a percentage of

covered payroll

11.9%

11.7%

12.7%

FY2014

FY2015

FY2016

On-Behalf Payments for Community

College Health Insurance Program

$56,393

$57,592

$58,392

The System implemented GASB No. 68 in fiscal year 2015. The information above is presented for as many

years as available. The Schedule is intended to show information for 10 years.

42

Table of Contents

This information is an integral part of the accompanying basic financial statements.

Changes in benefit terms. There were no benefit changes recognized in the total Pension Liability as of

June 30, 2015.

Changes of assumptions. In accordance with Illinois Compiled Statutes, an actuarial review is to be

performed at least once every three years to determine the reasonableness of actuarial assumptions

regarding the retirement, disability, mortality, turnover, interest, and salary of the members and benefit

recipients of SURS. An experience review for the years June 30, 2010 to June 30, 2014 was performed in

February 2015, resulting in the adoption of new assumptions as of June 30, 2015.

Mortality rates

. Change from the RP 2000 Mortality table projected to 2017, ex distinct, to the RP-2014

mortality tables with projected generational mortality improvement. Change to a separate mortality

assumption for disabled participants.

Salary increase

. Change assumptions to service-based rates, ranging from 3.75 percent to 15.00 percent

based on years of service, with underlying wage inflation of 3.75 percent.

Normal retirement rates

. Change to retirement rates at ages younger than 60, age 66, and ages 70-79 to

reflect observed experiences.

Early retirement rates

. Change to a slight increase to the rates at ages 55 and 56.

Turnover rates

. Change to produce lower expected turnover for members with less than 10 years of

service and higher turnover for members with more than 10 years of service than the currently assumed

rates.

Disability rates

. Decrease rates and have separate rates for males and females to reflect observed

experience.

Dependent assumption

. Maintain the current assumption on marital status that varies by age and sex

and the assumption that males are three years older than their spouses.

43

Table of Contents

STATISTICAL SECTION

(UNAUDITED)

Table of Contents

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

STATISTICAL SECTION

June 30, 2016

The statisti

cal section of the College’s Comprehensive Annual Financial Report presents detailed

information as a context for understanding what the information presented in the financial statements,

note disclosures, and required supplementary information says about the College’s overall financial

health.

PAGE

Financial Trends

45 - 53

These schedules contain trend information to help the reader understand

how the College's financial performance and well-being have changed over

time.

Revenue Capacity

54 - 55

These schedules contain information to help the reader assess the College's

most significant local revenue source, the property tax.

Debt Capacity

56 - 59

These schedules present information to help the reader assess the

affordability of the College's current levels of outstanding debt and the ability

to issue additional debt in the future.

Demographic and Economic Information

60 - 63

These schedules offer demographic and economic indicators to help the

reader understand the environment within which the College's financial

activities take place.

Operating Information

64 - 66

These schedules contain service and infrastructure data to help the reader

understand how the information in the College's financial report relates to

the services the College provides and the activities it performs.

Sources: Unless otherwise noted, the information in these schedules is derived from

the comprehensive annual financial reports for the relevant year.

44

Table of Contents

2016 2015 2014 2013 2012 2011 2010 2009 2008 2007

Net investment in capital

assets

62,174,592$ 61,986,034$ 61,588,437$ 58,486,000$ 37,384,222$ 31,806,680$ 29,637,009$ 28,307,540$ 24,469,114$ 23,911,304$

Restricted - expendable 12,891,136 13,546,036 12,425,192 14,424,062 15,527,340 15,539,432 17,068,273 18,802,170 20,923,252 19,454,347

Unrestricted

8,749,084 9,885,156 10,751,959 10,675,932 11,574,003 11,035,274 10,525,343 9,546,742 9,244,849 8,390,996

Total primary government

net position

83,814,812$ 85,417,226$ 84,765,588$ 83,585,994$ 64,485,565$ 58,381,386$ 57,230,625$ 56,656,452$ 54,637,215$ 51,756,647$

For the year ended June 30

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

SCHEDULE OF NET POSITION BY COMPONENT

Fiscal Years 2007 to 2016

45

Table of Contents

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

SCHEDULE OF EXPENSES BY ACTIVITY

Fiscal Years 2007 to 2016

For the Year Ended June 30

(amounts expressed as dollars)

2016 2015 2014 2013 2012 2011 2010 2009 2008 2007

Instruction 11,785,294$ 11,744,378$ 11,603,759$ 11,305,599$ 12,114,136$ 12,119,533$ 11,245,392$ 10,283,920$ 9,956,513$ 9,371,930$

Academic support 1,318,002 1,220,861 1,226,774 1,188,916 1,422,922 1,350,294 1,325,806 1,344,172 1,294,929 1,193,776

Student services 1,940,902 1,775,280 1,751,529 1,701,670 1,781,950 1,752,267 1,688,120 1,863,598 1,764,588 1,687,133

Public service 872,473 1,005,862 966,729 2,041,780 2,130,948 2,491,189 2,688,563 1,965,890 2,211,767 2,121,633

Auxiliary enterprises 2,383,384 2,733,107 2,815,069 2,798,055 3,175,818 3,474,844 3,337,671 3,025,532 3,027,845 2,993,064

Operation and maintenance of plant 2,799,815 2,367,544 2,689,336 2,432,429 2,528,460 2,420,383 3,216,324 2,564,758 2,563,569 2,310,683

Institutional support 10,510,561 9,776,872 9,045,566 8,803,723 7,888,725 7,269,580 6,723,990 5,585,393

5,446,687 4,903,687

Sch

olarships, grants & waivers 1,728,721 2,005,703 2,274,805 2,740,414 3,403,882 3,657,967 2,968,027 1,790,768 1,460,726 1,392,231

Depreciation 2,507,943 2,268,484 1,839,605 1,389,737 1,409,052 1,366,818 1,398,588 1,173,897 1,068,504 1,343,080

Total Operating Expenses 35,847,095 34,898,091 34,213,172 34,402,323 35,855,893 35,902,875 34,592,481 29,597,928 28,795,128 27,317,217

Loss on disposal of assets - 264,689 - - 5,088 - - 8,728 - 4,441

Interest on capital debt 21,278 49,141 76,198 104,485 133,789 121,248 172,708 223,668 272,067 335,994

Total Nonoperating Expenses 21,278 313,830 76,198 104,485 138,877 121,248 172,708 232,396 272,067 340,435

Total Expenses 35,868,373$ 35,211,921$ 34,289,370$ 34,506,808$ 35,994,770$ 36,024,123$ 34,765,189$ 29,830,324$ 29,067,195$ 27,657,652$

For the Year Ended June 30

(percent of total)

2016 2015 2014 2013 2012 2011 2010 2009 2008 2007

Instruction 32.9% 33.4% 33.8% 32.8% 33.7% 33.6% 32.3% 34.5% 34.3% 33.9%

Academic support 3.7% 3.5% 3.6% 3.4% 4.0% 3.7% 3.8% 4.5% 4.5% 4.3%

Student services 5.4% 5.0% 5.1% 4.9% 5.0% 4.9% 4.9% 6.2% 6.1% 6.1%

Public service 2.4% 2.9% 2.8% 5.9% 5.9% 6.9% 7.7% 6.6% 7.6% 7.7%

Auxiliary enterprises 6.6% 7.8% 8.2% 8.1% 8.8% 9.6% 9.6% 10.1% 10.4% 10.8%

Operation and maintenance of plant 7.8% 6.7% 7.8% 7.0% 7.0% 6.7% 9.3% 8.6% 8.8% 8.4%

Institutional support 29.3% 27.8% 26.4% 25.5% 21.9% 20.2% 19.3% 18.7% 18.7% 17.7%

Scholarships, grants & waivers 4.8% 5.7% 6.6% 7.9% 9.5% 10.2% 8.5% 6.0% 5.0% 5.0%

Depreciation

7% 6.4% 5.4% 4.0% 3.9% 3.8% 4.0% 3.9% 3.7% 4.9%

Total Operating Expenses 99.9% 99.1% 99.8% 99.7% 99.6% 99.7% 99.5% 99.2% 99.1% 98.8%

Loss on disposal of assets 0.0% 0.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Interest on capital debt

0.1%

0.1% 0.2% 0.3% 0.4% 0.3% 0.5% 0.7% 0.9% 1.2%

Total Nonoperating Expenses 0.1% 0.9% 0.2% 0.3% 0.4% 0.3% 0.5% 0.8% 0.9% 1.2%

Total Expenses 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Note: Fiscal years 2007 - 2010 have been restated to reflect the current presentation of federal scholarships refunded to students

46

Table of Contents

Fiscal Years 2007 to 2016

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

EXPENSES BY ACTIVITY

$- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000

Instruction

Academic support

Student services

Public service

Auxiliary enterprises

Operation and maintenance of plant

Institutional support

Scholarships, grants & waivers

Depreciation

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

47

Table of Contents

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

SCHEDULE OF EXPENSES BY USE

Fiscal Years 2007 to 2016

For the Year Ended June 30

(amounts expressed in dollars)

2016 2015 2014 2013 2012 2011 2010 2009 2008 2007

Salaries 14,932,550$ 14,768,919$ 14,501,581$ 14,732,641$ 15,707,408$ 16,358,004$ 15,559,450$ 14,752,051$ 14,514,568$ 13,869,112$

Benefits 9,736,654 8,725,238 7,998,401 7,829,898 6,938,924 6,011,994 5,331,868 4,299,496 3,943,508 3,535,614

Contractual services 2,015,276 2,274,899 1,835,803 2,357,725 2,379,000 2,201,590 2,964,495 1,765,125 1,728,977 1,517,994

Materials and supplies 3,402,702 3,297,094 4,101,606 3,529,029 3,866,494 4,287,789 4,487,747 3,715,039 3,794,408 3,633,849

Conference and travel 181,876 187,609 191,255 257,131 315,367 462,478 458,397 404,272 480,628 459,773

Fixed costs 536,250 661,759 667,970 729,991 748,660 628,680 507,145 553,269 555,489 576,096

Utilities 805,123 708,386 802,146 669,398 702,697 790,689 791,908 969,694 1,075,178 845,792

Depreciation 2,507,943 2,268,484 1,839,605 1,389,737 1,409,052 1,366,818 1,398,588 1,173,897 1,068,504 1,343,080

Scholarships 1,728,721 2,005,703 2,274,805 2,906,773 3,788,291 3,794,833 3,092,883 1,965,085 1,633,868 1,535,907

Total operating expenses 35,847,095 34,898,091 34,213,172 34,402,323 35,855,893 35,902,875 34,592,481 29,597,928 28,795,128 27,317,217

Loss on disposal of assets - 264,689 - - 5,088 - - 8,728 - 4,441

Interest on capital asset-related debt 21,278 49,141 76,198 104,485 133,789 121,248 172,708 223,668 272,067 335,994

Total nonoperating expenses 21,278 313,830 76,198 104,485 138,877 121,248 172,708 232,396 272,067 340,435

Total expenses 35,868,373$ 35,211,921$ 34,289,370$ 34,506,808$ 35,994,770$ 36,024,123$ 34,765,189$ 29,830,324$ 29,067,195$ 27,657,652$

For the Year Ended June 30

(amounts expressed in dollars)

2016 2015 2014 2013 2012 2011 2010 2009 2008 2007

Salaries 41.9% 42.3% 42.3% 42.7% 43.6% 45.4% 44.8% 49.5% 49.9% 50.1%

Benefits 24.8% 23.3% 23.3% 22.7% 19.3% 16.7% 15.3% 14.4% 13.6% 12.8%

Contractual services 6.5% 5.4% 5.4% 6.8% 6.6% 6.1% 8.5% 5.9% 5.9% 5.5%

Materials and supplies 9.4% 12.0% 12.0% 10.2% 10.7% 11.9% 12.9% 12.5% 13.1% 13.1%

Conference and travel 0.5% 0.6% 0.6% 0.7% 0.9% 1.3% 1.3% 1.4% 1.7% 1.7%

Fixed costs 1.9% 1.9% 1.9% 2.1% 2.1% 1.7% 1.5% 1.9% 1.9% 2.1%

Utilities 2.0% 2.3% 2.3% 1.9% 2.0% 2.2% 2.3% 3.3% 3.7% 3.1%

Depreciation 6.4% 5.4% 5.4% 4.0% 3.9% 3.8% 4.0% 3.9% 3.7% 4.9%

Scholarships 4.9% 6.6% 6.6% 8.4% 10.5% 10.5% 8.9% 6.6% 5.6% 5.6%

Total operating expenses 99.1% 99.8% 99.8% 99.7% 99.6% 99.7% 99.5% 99.2% 99.1% 98.8%

Loss on disposal of assets 0.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Interest on capital asset-related debt 0.1% 0.2% 0.2% 0.3% 0.4% 0.3% 0.5% 0.7% 0.9% 1.2%

Total nonoperating expenses 0.9% 0.2% 0.2% 0.3% 0.4% 0.3% 0.5% 0.8% 0.9% 1.2%

Total expenses 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Note: Fiscal years 2006 - 2010 have been restated to reflect the current presentation of federal scholarships refunded to students

48

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ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

EXPENSES BY USE

Fiscal Years 2007 to 2016

$- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 $18,000,000

Salaries

Benefits

Contractual services

Materials and supplies

Conference and travel

Fixed costs

Utilities

Depreciation

Scholarships

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

49

Table of Contents

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

SCHEDULE OF REVENUES BY SOURCE

Fiscal Years 2007 to 2016

For the Year Ended June 30

(amounts expressed in dollars)

2016 2015 2014 2013 2012 2011 2010 2009 2008 2007

Student tuition and fees

(net of scholarship allowances) 5,704,378$ 5,147,958$ 4,890,667$ 4,726,299$ 4,825,112$ 4,947,555$ 4,849,401$ 4,438,593$ 4,432,421$ 4,322,945$

Sales and services of educational

and other activities 231,305 330,812 631,671 575,135 1,055,715 982,380 1,191,923 1,411,966 1,393,371 1,511,720

Sales and services of auxiliary

enterprises 2,084,673 2,129,023 2,270,375 2,394,079 2,769,244 3,083,818 3,224,808 2,935,532 2,817,319 2,693,831

Other operating revenues - - - - - - - - - -

Total operating revenues 8,020,356 7,607,793 7,792,713 7,695,513 8,650,071 9,013,753 9,266,132 8,786,091 8,643,111 8,528,496

State appropriations 8,802,272 9,914,716 9,027,532 8,878,218 7,891,362 7,494,104 6,779,055 6,503,370 6,685,409 6,297,475

Federal grants and appropriations 5,186,832 5,932,492 5,855,095 7,377,299 8,454,104 8,799,194 7,766,482 4,833,568 4,635,730 4,163,427

Property taxes 11,627,742 11,462,581 11,303,277 11,415,502 11,589,105 11,472,665 10,978,512 10,335,680 10,521,623 10,736,918

Investment income 78,364 37,710 57,540 221,143 346,681 274,781 417,767 758,352 1,363,327 1,536,464

Other nonoperating revenues 550,393 223,969 1,067,596 217,496 152,983 120,387 131,414 82,500 98,563 13,047

Total nonoperating revenues 26,245,603 27,571,468 27,311,040 28,109,658 28,434,235 28,161,131 26,073,230 22,513,470 23,304,652 22,747,331

Total revenues 34,265,959$ 35,179,261$ 35,103,753$ 35,805,171$ 37,084,306$ 37,174,884$ 35,339,362$ 31,299,561$ 31,947,763$ 31,275,827$

For the Year Ended June 30

(percentage of total

2016 2015 2014 2013 2012 2011 2010 2009 2008 2007

Student tuition and fees

(net of scholarship allowances) 16.6% 14.6% 13.9% 13.2% 13.0% 13.3% 13.7% 14.2% 13.9% 13.8%

Sales and services of educational 0.0%

and other activities 0.7% 0.9% 1.8% 1.6% 2.8% 2.6% 3.4% 4.5% 4.4% 4.8%

Sales and services of auxiliary 0.0%

enterprises 6.1% 6.1% 6.5% 6.7% 7.5% 8.3% 9.1% 9.4% 8.8% 8.6%

Other operating revenues

0.0%

0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Total operating revenues 23.4% 21.6% 22.2% 21.5% 23.3% 24.2% 26.2% 28.1% 27.1% 27.3%

State appropriations 25.7% 28.2% 25.7% 24.8% 21.3% 20.2% 19.2% 20.8% 20.9% 20.1%

Federal grants and appropriations 15.1% 16.9% 16.7% 20.6% 22.8% 23.7% 22.0% 15.4% 14.5% 13.3%

Property taxes 33.9% 32.6% 32.2% 31.9% 31.3% 30.9% 31.1% 33.0% 32.9% 34.3%

Investment income 0.2% 0.1% 0.2% 0.6% 0.9% 0.7% 1.2% 2.4% 4.3% 4.9%

Other nonoperating revenues

1.6% 0.6% 3.0% 0.6% 0.4% 0.3% 0.4% 0.3% 0.3% 0.0%

Total nonoperating revenues 76.6% 78.4% 77.8% 78.5% 76.7% 75.8% 73.8% 71.9% 72.9% 72.7%

Total revenues 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Note: Fiscal years 2007 - 2010 have been restated to reflect the current presentation of federal scholarships refunded to students

50

Table of Contents

REVENUES BY SOURCE

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

Property

taxes

33.9%

Operating

revenue

23.4%

Federal

sources

15.1%

State sources

25.7%

Investment

income

0.2%

Other non-

operating

revenues

1.6%

Fiscal Year 2016

Property

taxes

32.2%

Operating

revenue

22.2%

Federal

sources

16.7%

State sources

25.7%

Investment

income

0.2%

Other non-

operating

revenues

3.0%

Fiscal Year 2015

51

Table of Contents

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

SCHEDULE OF OTHER CHANGES IN NET POSITION

Fiscal Years 2007 to 2016

For the Year Ended June 30

2016 2015 2014 2013 2012 2011 2010 2009 2008 2007

Income before other changes in net position (1,602,414)$ 232,027$ 814,383$ (189,599)$ 1,089,536$ 1,144,762$ 574,173$ 1,469,237$ 2,880,568$ 3,618,175$

State capital grants and appropriations - 419,611 - 17,802,066 5,014,643 5,999 - 550,000 - -

Federal capital grants and appropriations - - - - - - - - - -

Total change in net position (1,602,414)$ 651,638$ 814,383$ 17,612,467$ 6,104,179$ 1,150,761$ 574,173$ 2,019,237$ 2,880,568$ 3,618,175$

52

Table of Contents

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

TUITION AND FEES

Last Ten Academic Years

Academic

Year

Beginning

in Fall

Illinois

Valley

Illinois Peer

Community

Colleges*

Illinois

Community

College

Highest

Illinois

Community

College

Lowest

Illinois

Community

College

Average

2016

124.00$ 123.21$ 158.50$ 108.00$ 133.42$

2015 119.00 116.72 152.75 98.00 125.49

2014 111.00 109.55 145.00 92.00 118.77

2013 101.00 105.63 140.00 92.00 112.65

2012 91.77 101.30 138.00 89.00 107.89

2011 83.52 98.30 138.00 83.52 103.89

2010 75.75 92.80 134.50 75.75 98.26

2009 69.75 81.30 131.00 67.00 88.10

2008 67.75 75.94 127.00 63.00 84.04

2007 65.75 70.86 103.75 60.00 76.52

Sources: ICCB Data and Characteristics of the Illinois Public Community College System 1997-2011.

ICCB Tuition and Fee Survey 2012-2016

*Colleges included in the Illinois Community College Board peer group are:

Illinois Eastern Community College, Kankakee Community College, Lake Land Community College,

Lewis and Clark Community College, John A. Logan College and McHenry Community College.

53

Table of Contents

Levy

Year

Residential

Property

Commercial

Property

Industrial

Property*

Farm

Property

Mineral

Property*

Railroad

Property

Total

Equalized

Assessed

Valuation

Total

Tax

Rate

Estimated

Total

Extension

Increase/

(Decrease)

EAV

Increase/

(Decrease)

Extension

2015

1,293,658,791$ 389,722,994$ 660,383,138$ 615,511,369$ 14,176,543$ 38,788,078$ 3,012,240,913$ 37.60$ 11,326,628$ 0.6% 2.0%

2014 1,282,470,013 385,336,833 676,143,794 598,888,483 14,673,658 36,870,478 2,994,383,259 37.07 11,100,179 -0.9% 0.7%

2013 1,317,865,672 387,331,269 700,227,792 564,174,808 15,052,233 35,646,096 3,020,297,870 36.51 11,027,108 -1.2% 2.0%

2012 1,389,099,352 394,340,909 693,001,393 538,577,691 9,729,372 32,364,796 3,057,113,513 35.36 10,809,953 -2.4% -2.1%

2011 1,477,601,397 401,802,370 704,932,628 515,788,889 2,252,229 30,418,799 3,132,796,312 35.23 11,036,841 -1.6% -1.3%

2010 1,531,749,242 396,608,320 694,638,725 499,361,239 34,685,705 26,060,324 3,183,103,555 35.12 11,179,060 -0.5% 0.9%

2009 1,588,567,835 400,966,271 685,325,088 479,203,345 21,475,553 23,105,952 3,198,644,044 34.65 11,083,078 11.5% 9.0%

2008 1,588,318,680 400,961,722 406,110,977 452,850,028 716,246 19,449,782 2,868,407,435 35.45 10,168,504 5.3% 3.9%

2007 1,519,676,401 373,913,066 394,561,413 419,693,709

603,994 16,865,933

2,725,314,516 35.92 9,789,330 6.1% -5.3%

2006 1,417,184,845 344,278,519 397,057,548 394,610,203 598,377 14,761,446 2,568,490,938 40.24 10,335,608 6.9% -2.8%

*Wind turbines were classified as mineral property in 2009 and 2010. All other years are recorded as industrial property.

Note: Assessed value is computed by various county clerk offices and is equal to approximately one-third of the estimated actual value.

Tax rates are assessed in dollars per hundred of equalized assessed value.

Sources: Bureau, DeKalb, Gundy, LaSalle, lee, Livingston, Marshall, and Putnam County Clerk Offices

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

SCHEDULE OF PROPERTY TAX EQUALIZED ASSESSED VALUATIONS

Last Ten Fiscal Years

54

Table of Contents

Collected within the Fiscal

Year of the Levy

Total Collections to Date

Tax

Levy

Year

Fiscal

Year

Final

Tax Levy

Amount

Percentage

of Levy

Collected in

Subsequent

Years

Amount

Percent

of Levy

2015 2017

11,326,628$ 4,028$ 0.04%

$ -

-$ 0.

00%

2014 2016 11,100,109 3,816 0.03% 11,003,035 11,006,851$ 99.16%

2013 2015 11,030,059 3,713 0.03% 11,004,661 11,008,374 99.80%

2012 2014 10,874,709 3,459 0.03% 10,744,383 10,747,842 98.83%

2011 2013 11,044,966 3,371 0.03% 10,979,938 10,983,309 99.44%

2010 2012 11,179,060 3,334 0.03% 11,175,488 11,178,822 100.00%

2009 2011 11,083,078 279,834

*

2.52% 10,380,189 10,660,023 96.18%

2008 2010 10,158,381 25,527

*

0.25% 10,074,442 10,099,969 99.42%

2007 2009 10,111,961 2,611 0.03% 9,835,512 9,838,123 97.29%

2006 2008 10,339,401 2,705 0.03% 10,335,692 10,338,397 99.99%

Source: College Records

Note: Property taxes in Illinois Valley Community College District #513 are due in two installments in the calendar

year following the levy. District #513 includes eight counties - LaSalle, Bureau, Putnam, Marshall, Lee, Livingston,

Grundy and DeKalb.

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

Last Ten Fiscal Years

* In fiscal year 2010 and 2011, Putnam County disbursed real estate tax payments prior to July 1. In most years,

DeKalb County is the only county to disburse prior to July 1.

SCHEDULE OF PROPERTY TAX LEVIES AND COLLECTIONS

55

Table of Contents

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

SCHEDULE OF DEBT MATURITIES

Amounts Due During Year

Fiscal

Year

Bond

Number

Interest

Rate

Principal

Interest

Total

June 30 Unpaid

Principal Balance

2017

504372DF7

2.500%

$265,000

$3,312

$268,312

$ -

CAPITAL LEASE OBLIGATIONS

Fiscal

Year

Lease

Payment

Implied

Interest

Present

Value

2016

$17,132

$1,684

$15,448

2017

17,132

1,325

15,807

2018

8,500

1,249

7,251

2019

23,262

432

22,830

2020

11,362

260

11,100

56

Table of Contents

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

Last Ten Fiscal Years

Fiscal

Year

Net General

Bonded Debt

Equalized

Assessed Value

Population

(Estimated)*

Ratio of Net

General Bonded

Debt to Assessed

Value

Net Bonded

Debt Per Capita

Ratio of Net

General Bonded

Debt to

Household

Income**

2016 $ 265,000

3,012,240,913$ 145,785 0.009% 2 0.01%

2015 1,510,000

2,994,383,259 146,192 0.

050% 10 0.04%

2014 2,725,000

3,020,297,870 147,293 0.

090% 19 0.07%

2013 3,910,000

3,057,113,513 148,429 0.

128% 26 0.10%

2012 5,000,000

3,132,796,312 149,344 0.

160% 33 0.14%

2011

1,206,210 3,183,103,555 150,122 0.038% 8 0.03%

2010

2,354,963 3,198,644,044 147,673 0.074% 16 0.06%

2009

3,447,255 2,868,407,435 147,820 0.

120% 23 0.07%

2008

4,488,587 2,725,372,607 148,147 0.

165% 30 0.10%

2007 5,481,520 2,551,819,980 148,800 0.215% 37 0.12%

Source: * David Ault @ SIU-E

Note:

** Ratios calculated using population and equalized assessed valuation from prior calendar year.

SCHEDULE OF RATIOS OF OUTSTANDING DEBT

57

Table of Contents

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

Last Ten Fiscal Years

Tort Immunity Bonds, Series 1996

Debt Service Requirements

Fiscal

Year

Tax Levy

Principal Interest Total

Coverage

Ratio

2007 -$ 690,000$ 18,458$ 708,458$ 0.00

2006 700,663 645,000 53,847 698,847 1.00

Community College Bonds, Series 1999

Debt Service Requirements

Fiscal

Year

Tax Levy

Principal Interest Total

Coverage

Ratio

2012

$ 1,262,517

1,265,000$ -$ 1,265,000$

1.00

2011

1,267,428

1,265,000 - 1,265,000 1.00

2010 1,265,147 1,265,000 - 1,265,000 1.00

2009 1,271,211 1,270,000 - 1,270,000 1.00

2008 1,267,298 1,265,000 - 1,265,000 1.00

2007 1,263,151 1,265,000 - 1,265,000 1.00

2006 1,266,856 1,265,000 - 1,265,000 1.00

Community College Bonds, Series 2011

Debt Service Requirements

Fiscal

Year

Tax Levy

Principal Interest Total

Coverage

Ratio

2016 $ 268,692 $ 1,245,000 $ 22,188

1,267,188$ 0.21

2015

1,267,188 1,215,000 51,419 1,266,419

1.00

2014

1,266,419 1,185,000 78,419 1,263,419

1.00

2013

1,263,419 1,090,000 171,840 1,261,840

1.00

2012

- - 75,000 75,000

0.00

Note: Community College Bonds, Series 1999 were issued as "zero coupon", or capital

appreciation bonds.

SCHEDULE OF BOND COVERAGE

58

Table of Contents

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

LEGAL DEBT MARGIN INFORMATION

Last Ten Fiscal Years

Fiscal

Year

Debt

Limit

Total Debt

Applicable to

Limit

Legal Debt

Margin

Percentage

of Debt

Limit

2016

86,601,926$ 265,000$ 86,336,926$ 0.31%

2015 86,088,519 1,510,000 84,578,519 1.75%

2014 86,833,564 2,725,000 84,108,564 3.14%

2013 87,892,013 3,910,000 83,982,013 4.45%

2012 90,067,894 5,000,000 85,067,894 5.55%

2011 91,514,227 1,206,211 90,308,016 1.32%

2010 91,961,016 2,349,963 89,611,053 2.56%

2009 82,466,714 3,447,255 79,019,459 4.18%

2008 78,352,792 4,488,587 73,864,205 5.73%

2007 73,844,114 5,481,520 68,362,594 7.42%

59

Table of Contents

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

DEMOGRAPHIC AND ECONOMIC STATISTICS

Last Ten Calendar Years

Calendar

Year

District

Population*

Total Household

Income*

Household

Income Per

Capita*

State

Unemployment

Rate**

LaSalle, Bureau, &

Putnam Counties

Unemployment

Rate**

2015

145,785 3,601,183,290$ 39,216$ 6.4% 6.5%

2014 146,192 3,714,549,127 38,751 7.1% 8.0%

2013 147,293 3,778,614,731 39,189 9.1% 10.2%

2012 148,429 3,745,136,976 37,245 9.0% 9.9%

2011 149,344 3,644,444,327 36,964 9.7% 10.5%

2010 150,122 4,127,895,340 35,948 10.4% 11.7%

2009 147,673 4,209,381,630 34,104

10.2% 11.

9%

2008 147,820 4,867,151,311 33,042 6.3% 7.6%

2007 148,147 4,700,432,905 31,728 5.0% 5.9%

2006 148,800 4,497,128,655 30,223 4.5% 5.0%

Sources:

*David Ault @SIU-E

**http://www.ides.illinois.gov/Pages/default.aspx

60

Table of Contents

Employer Rank City

No. of

employees

% of

Total

Population

Employer Rank City

No. of

employees

% of

Total

Population

Exelon Corporation 1 Seneca 800 0.5% Wal-Mart Distribution Center 1 Spring Valley 1,000 0.7%

Wal-Mart Distribution Center 2 Spring Valley 800 0.5% Exelon Corporation 2 Seneca 920 0.6%

Peru Mall 3 Peru 800 0.5% PetsMart 3 Ottawa 800 0.5%

OSF St Elizabeth 4 Ottawa 730 0.5% Peru Mall 4 Peru 775 0.5%

St Margaret's Hospital 5 Spring Valley 650 0.4% St Margaret's Hospital 5 Spring Valley 700 0.5%

Illinois Valley Community Hospital, Inc. 6 Peru 640 0.4% Illinois Valley Community Hospital, Inc. 6 Peru 650 0.4%

Vactor Manufacturing 7 Streator 575 0.4% Community Hospital of Ottawa 7 Ottawa 635 0.4%

Illinois Valley Community College 8 Oglesby 536 0.4% St Mary's Hospital 8 Streator 550 0.4%

Monterey Mushrooms 9 Princeton 500 0.3% Illinois Valley Community College 9 Oglesby 509 0.3%

PetSmart 10 Ottawa 500 0.3% Monterey Mushrooms 10 Princeton 500 0.3%

Ace Hardware Retail Support Center 11 Princeton 485 0.3% Ace Hardware Retail Support Center 11 Princeton 485 0.3%

Streator Results 12 Streator 480 0.3% Clover Technologies 12 Ottawa 450 0.3%

Clover Technologies 13 Ottawa 450 0.3% Vactor Manufacturing 13 Streator 442 0.3%

LCN - A division of Allegion 14 Princeton 440 0.3% Ingersoll-Rand/LCN Division 14 Princeton 440 0.3%

HR Imaging 15 Ottawa 425 0.3% HR Imaging Partners 15 Princeton 425 0.3%

Oak State Products 16 Wenona 400 0.3% G.E. Plastics 16 Ottawa 425 0.3%

DSI 17 Streator 390 0.3% US Food Service 17 Streator 400 0.3%

Office Max - Call Center 18 Ottawa 375 0.3% Oak State Products 18 Wenona 400 0.3%

Wal-Mart Store 19 Peru

367

0.3%

Eakas Corporation 20 Peru

367

0.3%

Source: Illinois Valley Area Chamber of Commerce

Ottawa Chamber of Commerce

Princeton Chamber of Commerce

Seneca Chamber of Commerce

Streator Chamber of Commerce

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

PRINCIPAL EMPLOYERS - BY NUMBER OF EMPLOYEES

CURRENT YEAR AND NINE YEARS AGO

2016

2007

61

Table of Contents

Name County Type of Business of Property

2015 Equalized

Assessed

Valuation

(million)

Rank

Percent of

District's

Total EAV

2006 Equalized

Assessed

Valuation

(million)

Rank

Percent of

District's

Total EAV

Exelon Generation Co., LLC LaSalle Nuclear Power Plant

$435,000,000 1 14.44% $ 324,200,000 1

13.74%

Marquis Energy Putnam Ethanol Plant 40,820,204

2 1.36%

Silverleaf Resorts LaSalle Resort 14,618,501

3 0.49%

8,329,802 4 0.35%

Unimin Corp. LaSalle Mining 11,272,150

4 0.37%

Tau Midwest (Petsmart) LaSalle Distribution Center 11,038,519

5 0.37%

James Hardie LaSalle Building Products 9,262,856

6 0.31%

5,416,301 5 0.23%

Ace Hardware Bureau Distribution Center 9,044,614

7 0.30%

9,852,800 3 0.42%

Walmart Stores Bureau Distribution Center 6,918,501

8 0.23%

12,856,080 2 0.54%

BNSF Railway Company Bureau Railroad 6,776,962

9 0.22%

Eugene & Dorothy Missel LaSalle Solar Farm 6,356,855

10 0.21%

Eakas Corp. LaSalle Manufacturing 5,817,974

11 0.19%

Peru GKD Partners LaSalle Shopping Center 5,473,151

12 0.18%

5,272,373 7 0.22%

Walmart (Peru) LaSalle Retail 5,119,218

13 0.17%

Iowa Interstate Railroad Bureau Railroad 4,852,750

14 0.16%

ISG Hennepin, Inc. Putnam Manufacturing 4,840,811

15 0.16%

5,337,212 6 0.23%

DBM Holdings Inc. LaSalle Warehouse 4,740,976

16 0.16%

Kohl's Department Store, Inc. LaSalle Distribution Center 4,627,922

17 0.15%

Washington Mills Hennepin, Inc. Putnam Manufacturing 4,384,941

18 0.15%

Con-Way Freight Inc. LaSalle Truck Terminal 4,088,333

19 0.14%

Wedron Silica Company LaSalle Mining 4,029,851

20 0.13%

Chicago Title & Trust LaSalle Industrial 3,863,335

21 0.13%

Walmart (Ottawa) LaSalle Retail 3,840,983

22 0.13%

Supervalu LaSalle Distribution Center 3,814,894

23 0.13%

Gage Farms, Inc. LaSalle Industrial 3,787,532

24 0.13%

Independence Tube Corp. LaSalle Manufacturing 3,488,420

25 0.12%

Walmart Stores, Inc. Bureau Retail 3,459,251

26 0.11%

Store Master Funding III LLC LaSalle Commercial Real Estate 3,330,104

27 0.11%

Dynegy Midwest Generation, Inc. Putnam Electricity Generation 3,290,761

28 0.11%

627,960,369$ 20.85% 371,264,568$ 15.73%

Source: Bureau, DeKalb, Grundy, LaSalle, Lee, Livingston, Marshall, and Putnam County Assessor Offices

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

PRINCIPAL TAXPAYERS

CURRENT LEVY YEAR AND NINE YEARS AGO

62

Table of Contents

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

FULL-TIME EQUIVALENT DATA

Last Ten Fiscal Years

Fiscal Year

2016 2015 2014 2013 2012 2011 2010 2009 2008 2007

Faculty

Part-time (FTE) 145 111 126 126 132 143 124 106 111 110

Full-time (FTE) 80 84 83 81 82 88 88 86 88 87

Percentage tenured 88% 90% 88% 88% 88% 88% 90% 87% 88% 86%

Staff and Administrators

Part-time (FTE) 44 44 39 39 37 39 38 39 40 38

Full-time (FTE) 100 104 106 124 127 135 140 142 140 141

Total Employees

Part-time (FTE) 189 155 165 165 169 182 162 145 151 148

Full-time (FTE) 180 188 189 205 209 223 228 228 228 228

Students per Full-Time Faculty

41 42 45 49 53 51 51 49 47 45

Stud

ents per Full-time Staff Member 33 34 35 32 34 33 32 30 29 28

Fall Semester Student Headcount 3,310 3,525 3,705 3,944 4,355 4,507 4,529 4,231 4,103 3,939

Average Annual Faculty Salary 69,612$ 68,190$ 66,524$ 66,823$ 64,323$ 62,930$ 61,050$

58,641$ 56,

312$ 57,840$

Notes:

One FTE is equal to 2,080 hours of work.

One FTE for part-time faculty is equal to 30 credit hours multiplied by the average per credit hour pay rate.

Full-time overload is included in the part-time line.

FACULTY, STAFF, AND ADMINISTRATOR STATISTICS

63

Table of Contents

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

Last Ten Academic Years

Fiscal Year

2016 2015 2014 2013 2012 2011 2010 2009 2008 2007

Enrollment

Annual Unduplicated Headcount (1) 5,534 5,760 6,303 6,566 7,360 8,315 8,361 8,131 7,755 7,451

Annual Full Time Equivalent Students 2,236 2,242 2,402 2,535 2,866 3,224 3,108 2,803 2,737 2,668

Full-time students (2) 39% 42% 40% 42% 43% 47% 46% 42% 44% 44%

Part-time students 61% 58% 60% 58% 57% 53% 54% 58% 56% 56%

Percentage of men 42% 42% 40% 41% 40% 45% 42% 42% 44% 44%

Percentage of women 58% 58% 60% 59% 60% 55% 58% 58% 56% 56%

Ethnicity Percentage

American Indian 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%

Asian 1% 1% 1% 1% 1% 1% 1% 1% 1% 1%

Black 2% 3% 2% 2% 2% 3% 3% 4% 4% 4%

Hispanic 5% 5% 6% 6% 6% 6% 7% 7% 6% 7%

White 84% 84% 85% 86% 86% 82% 84% 84%

83% 83%

No

t Indicated 8% 7% 6% 5% 5% 8% 5% 4% 5% 5%

Average age

23 24 24 2

5 25 26 25 25 26 26

Annual Credit Hours 67,092 67,249 72,054 76,056 85,983 96,728 93,251 84,100 82,095 80,036

Illinois Community College

Board Reimbursed Credit Hours(3) 62,924 65,870 70,788 73,423 83,369 94,539 91,452 82,147 80,601 78,107

(1) Represents annual unduplicated credit hour students

(2) Percentages are based on Fall semester tenth-day demographics only

(3) Beginning in fiscal year 2003, credit hours generated with more than 50 percent restricted funds were no longer claimable for reimbursement by the

Illinois Community College Board.

ADMISSIONS AND ENROLLMENT STATISTICS

64

Table of Contents

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

BY CATEGORY

Last Ten Fiscal Years

Fiscal

Year

Baccalaureate

Business

Occupational

Technical

Occupational

Health

Occupational

Remedial

Developmental

Adult Basic/

Secondary

Education

Total Credit

Hours

2007 47,899 4,342 13,180 6,307 5,510 2,798 80,036

2008

47,999 4,469 14,984 6,353 5,952 2,339 82,095

2009

49,970 4,823 13,084 6,724 6,619 2,880 84,100

2010

56,450 5,478 15,025 7,050 7,001 2,247 93,251

2011

58,028 5,452 14,597 8,674 7,496 2,481 96,728

2012

53,353 5,334 10,645 7,885 6,152 2,615 85,984

2013

46,729 4,790 9,263 7,288 5,352 2,634 76,056

2014

45,818 4,640 8,099 6,912 5,028 1,557 72,054

2015

43,350 4,216 7,598 6,422 4,011 1,653 67,249

2016

40,900 3,793 7,779 6,265 3,117 1,338 63,192

STUDENT ENROLLMENT DEMOGRAPHIC STATISTICS

-

20,000

40,000

60,000

80,000

100,000

120,000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Total Reimbursable Credit Hours - Fiscal Years 2007-2016

65

Table of Contents

2016 2015 2014 2013 2012 2011 2010 2009 2008 2007

Facilities Data:

Size of campus (acres) 415 415 415 415 415 415 415 415 415 415

Number of permanent buildings 10 10 10 8 8 8 8 8 7 7

Gross square footage:

As of June 30 409,339 409,339 409,339 375,711 375,711 375,711 375,711 375,711 372,591 372,591

Under construction - - - 96,527 79,727 - - - - -

Net assignable square footage 259,245 259,245 259,245 220,910 220,910 220,910 220,910 220,910 220,910 220,910

Parking (acres) 16.1 16.1 16.1 16.1 16.1 16.1 16.1 16.1 16.9 16.9

Annual Full Time Equivalent Students 2,236 2,242 2,402 2,535 2,866 3,224 3,108 2,803 2,737 2,668

Annual Headcount 5,534 5,760 6,303 6,566 7,360 8,315 8,361 8,131 7,755 7,451

Net assignable square footage

per full time equivalent 115.94 115.63 107.93 87.14 77.08 68.52 71.08 78.81 80.71 82.80

Prior Year District Population unavailable 145,785 146,192 147,293 148,429 149,344 150,122 147,673 147,820 148,147

Headcount per 1,000 Population unavailable 39.51 43.11 44.58 49.59 55.68 55.69 55.06 52.46 50.29

FTE Per 1,000 Population unavailable 15.38 16.43 17.21 19.31 21.59 20.70 18.98 18.52 18.01

CAPITAL ASSET STATISTICS

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

Last Ten Fiscal Years

66

Table of Contents

SPECIAL REPORTS SECTION

Table of Contents

SUPPLEMENTARY FINANCIAL INFORMATION

Table of Contents

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

COMBINED BALANCE SHEET

ALL FUND TYPES

June 30, 2016

Proprietary Fiduciary

Governmental Fund Types Fund Types Fund Types

General General Total

Special Debt Capital Trust and Fixed Long-Term (Memorandum

General Revenue Service Projects Enterprise Agency Funds Assets Debt Only)

ASSETS AND OTHER DEBITS

Assets

Cash and cash equivalents 865,120$ 1,209,441$ 174,744$ 112,188$ 660,162$ 176,158$ -$ -$ 3,197,813$

Investments 2,487,008 4,454,400 633,972 4,747,643 480,488 - - - 12,803,511

Receivables

Property taxes 8,848,511 620,569 266,083 1,493,152 - - - - 11,228,315

Governmental claims 212,174 379,190 - 337,660 - 219,456 - - 1,148,480

Other

3,354,963 8,476 - - 82,873 - - - 3,446,312

Accrued revenue - 19,948 - - 571 - - - 20,519

Due from other funds 220,403 5,337 - - - - - - 225,740

Bookstore inventories - - - - 814,524 - - - 814,524

Deferred expenditures 335,306 89,912 - - 60,862 - - - 486,080

Capital assets, net of accumulated

depreciation - - - - 58,886 - 62,115,706 - 62,174,592

Other debits

Amount available in

Debt Service Fund - - - - - - - 941,157 941,157

Amount to be provided

to retire debt

- - - - - - - (676,157) (676,157)

TOTAL ASSETS AND

OTHER DEBITS

16,323,485$ 6,787,273$ 1,074,799$ 6,690,643$ 2,158,366$ 395,614$ 62,115,706$ 265,000$ 95,810,886$

67

Table of Contents

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

COMBINED BALANCE SHEET (Continued)

ALL FUND TYPES

June 30, 2016

Proprietary Fiduciary

Governmental Fund Types Fund Types Fund Types

General General Total

Special Debt Capital Trust and Fixed Long-Term (Memorandum

General

Revenue Service Projects Enterprise Agency Funds Assets Debt Only)

LIABILITIES

Accounts payable 89,602$ 11,735$ -$ -$ 15,493$ 6,864$ -$ -$ 123,694$

Accrued salaries 996,693 18,509 - - 14,754 - - - 1,029,956

Accrued liabilities 180,321 96,729 - 94,815 11,633 1,797 - - 385,295

Due to other funds 5,337 - - - - 220,403 - - 225,740

Due to student groups - - - - - 146,767 - - 146,767

Deferred revenue

Property taxes 4,425,842 312,448 133,090 746,846 - - - - 5,618,226

Tuition and fees 4,060,001 - - - - - - - 4,060,001

Other

- - - - - 19,783 - - 19,783

Other liabilities 2,232 2,407 552 - - - - - 5,191

Capital Lease Payable - - - - 56,989 56,989

Bonds payable

- - - - - - - 265,000 265,000

Total liabilities

9,760,028 441,828 133,642 841,661 98,869 395,614 - 265,000 11,936,642

EQUITY AND OTHER CREDITS

Investment in general fixed assets - - - - 58,886 - 62,115,706 - 62,174,592

Retained earnings - Unreserved - - - - 2,000,611 - - - 2,000,611

Fund balance (deficit)

Reserved for grant purposes - - - - - - - - -

Reserved for building purposes - - - 5,848,982 - - - - 5,848,982

Reserved for liability,

protection and settlement - 1,765,543 - - - - - - 1,765,543

Reserved for debt service - - 941,157 - - - - - 941,157

Unreserved

6,563,457 4,579,902 - - - - - - 11,143,359

Total equity and other credits

6,563,457 6,345,445 941,157 5,848,982 2,059,497 - 62,115,706 - 83,874,244

TOTAL LIABILITIES, EQUITY AND

OTHER CREDITS

16,323,485$ 6,787,273$ 1,074,799$ 6,690,643$ 2,158,366$ 395,614$ 62,115,706$ 265,000$ 95,810,886$

Account Groups

68

Table of Contents

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

COMBINED SCHEDULE OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES

Year Ended June 30, 2016

Governmental Fund Types

Total

Special Debt Capital (Memorandum

General Revenue Service Projects Only)

REVENUES

Local government 10,080,316$ 464,062$ 766,417$ 1,495,373$ 12,806,168$

State government 7,072,054 214,132 - 337,660 7,623,846

Federal government 6,467 5,180,365 - - 5,186,832

Student tuition and fees 8,376,100 - - - 8,376,100

Investment income 10,329 53,919 1,942 9,851 76,041

Other sources

585,290 119,994 - - 705,284

Total revenues

26,130,556 6,032,472 768,359 1,842,884 34,774,271

EXPENDITURES - EDUCATIONAL

AND GENERAL

Current

Instruction 10,917,168 690,025 - - 11,607,193

Academic support

1,360,663 - - - 1,360,663

Student services 1,644,357 297,045 - - 1,941,402

Public service 710,002 162,954 - - 872,956

Operation and maintenance of plant 2,315,772 445,535 - 2,485,326 5,246,633

General institutional support 9,929,314 727,870 500 - 10,657,684

Scholarships, grants and waivers 488,678 4,289,498 - - 4,778,176

Debt Service

Principal - - 1,245,000 - 1,245,000

Interest

-

- 19,594 -

19,594

Total expenditures

27,365,954

6,612,927

1,265,094 2,485,326 37,729,301

Excess (deficiency) of revenues over expenditures (1,235,398) (580,455) (496,735) (642,442) (2,955,030)

OTHER FINANCING SOURCES (USES)

Operating transfers in (out)

245,640 (190,000)

- - 55,640

Excess (deficiency) of revenues and other

financing sources over expenditures and

other financing uses (989,758) (770,455) (496,735) (642,442) (2,899,390)

FUND BALANCES, July 1, 2015

7,553,215 7,115,900 1,437,892

6,491,424 22,598,431

FUND BALANCES, June 30, 2016

6,563,457$ 6,345,445$ 941,157$

5,848,982$ 19,699,041$

- - - -

69

Table of Contents

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

COMBINED SCHEDULE OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL -

ALL GOVERNMENTAL FUND TYPES

Year Ended June 30, 2016

Capital Projects

Budget Actual Budget Actual Budget Actual Budget Actual Budget Actual

REVENUES

Local governmental 9,571,325$ 10,080,316$ 307,963$ 464,062$ 1,267,175$ 766,417$ 1,496,428$ 1,495,373$ 12,642,891$ 12,806,168$

State governmental 8,858,958 7,072,054

*

313,970 214,132 - - - 337,660 9,172,928 7,623,846

Federal governmental 8,300 6,467 5,826,932 5,180,365 - - - - 5,835,232 5,186,832

Student tuition and fees 8,958,927 8,376,100 3,000 - - - - - 8,961,927 8,376,100

Investment income 3,750 10,329 25,250 53,919 1,000 1,942 3,572 9,851 33,572 76,041

Other sources

641,802 585,290 58,768 119,994 - - - - 700,570 705,284

Total revenues

28,043,062 26,130,556 6,535,883 6,032,472 1,268,175 768,359 1,500,000 1,842,884 37,347,120 34,774,271

EXPENDITURES

Instruction 11,404,402 10,917,168 692,618 690,025 - - - - 12,097,020 11,607,193

Academic support 1,599,477 1,360,663 - - - - - - 1,599,477 1,360,663

Student services and aids 1,633,097 1,644,357 290,652 297,045 - - - - 1,923,749 1,941,402

Public service 827,545 710,002 195,000 162,954 - - - - 1,022,545 872,956

Operation and maintenance of plant 2,333,279 2,315,772 357,930 445,535 - - 2,977,071 2,485,326 5,668,280 5,246,633

General institutional support 10,336,780 9,929,314

*

769,377 727,870 500 500 - - 11,106,657 10,657,684

Scholarships, grant and waivers 488,750 488,678 4,987,268 4,289,498 - - - - 5,476,018 4,778,176

Debt Service

Principal - - - - 1,245,000 1,245,000 - - 1,245,000 1,245,000

Interest

- - - - 22,188 19,594 - - 22,188 19,594

Total expenditures

28,623,330 27,365,954 7,292,845 6,612,927 1,267,688 1,265,094 2,977,071 2,485,326 40,160,934 37,729,301

Excess (deficiency) of revenues over

expenditures (580,268) (1,235,398) (756,962) (580,455) 487 (496,735) (1,477,071) (642,442) (2,813,814) (2,955,030)

OTHER FINANCING SOURCES (USES)

Operating transfers in (out)

580,268 245,640 26,482 (190,000) - - - - 606,750 55,640

Excess (deficiency) of revenues and other

financing sources over expenditures and

other financing uses

-$

(989,758)

(730,480)$

(770,455)

487$

(496,735)

(1,477,071)$

(642,442)

(2,207,064)$

(2,899,390)

FUND BALANCES, July 1, 2015

7,553,215 7,115,900 1,437,892 6,491,424 22,598,431

FUND BALANCES, June 30, 2016

6,563,457$ 6,345,445$ 941,157$ 5,848,982$ 19,699,041$

- - - -

* Includes SURS and budget does not

General

Special Revenue

Debt Service

Total (Memorandum Only)

70

Table of Contents

GENERAL FUND

Table of Contents

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

GENERAL FUND

COMBINING BALANCE SHEET

June 30, 2016

Operation and Total

Education Maintenance General

Fund Fund Fund

ASSETS

Cash and cash equivalents 630,202$ 234,918$ 865,120$

Investments 620,649 1,866,359 2,487,008

Receivables

Property taxes 7,653,989 1,194,522 8,848,511

Governmental claims 180,348 31,826 212,174

Other 3,092,988 261,975 3,354,963

Due from student groups 220,403 - 220,403

Prepaid Expenditures

320,506 14,800 335,306

TOTAL ASSETS

12,719,085$ 3,604,400$

16,323,485$

LIABILITIES

Accounts payable 69,635$ 19,967$ 89,602$

Accrued salaries 933,965 62,728 996,693

Other liabilities 91,006 89,315 180,321

Due to other funds 5,337 - 5,337

Deferred revenue

Property taxes 3,828,367 597,475 4,425,842

Tuition and fees 3,782,389 277,612 4,060,001

Other liabilities

2,232

- 2,232

Total liabilities 8,712,931 1,047,097 9,760,028

FUND BALANCE

Unreserved

4,006,154 2,557,303

6,563,457

TOTAL LIABILITIES AND FUND BALANCE

12,719,085$ 3,604,400$ 16,323,485$

71

Table of Contents

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

GENERAL FUND

COMBINING SCHEDULE OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCE

Year Ended June 30, 2016

Operations

and

Maintenance Total

Education Operational General

Fund Fund Fund

Local government revenue

Local taxes 7,200,485$ 1,196,304$ 8,396,789$

CPPRT 1,001,662 176,764 1,178,426

Other

378,826 126,275 505,101

8,580,973 1,499,343 10,080,316

State government sources

ICCB Credit Hour Grants 561,896 - 561,896

ICCB Equalization Grants 50,000 - 50,000

On-behalf payments - SURS

6,460,158 - 6,460,158

7,072,054 - 7,072,054

Federal government sources

Department of Education 6,467 - 6,467

American Recovery and Reinvestment Act

-

- -

6,467 - 6,467

Student tuition and fees

Tuition 7,000,797 558,755 7,559,552

Fees

816,548 -

816,548

7,817,345 558,755 8,376,100

Other sources

Sales and service fees 313,184 - 313,184

Facilities revenue - 158,765 158,765

Investment revenue 5,748 4,581 10,329

Other

111,088 2,253 113,341

430,020 165,599 595,619

Total revenues

23,906,859

2,223,697

26,130,556

Expenditures - Educational and General

Current

Instruction 10,917,168 - 10,917,168

Academic support 1,360,663 - 1,360,663

Student services and aids 1,644,357 - 1,644,357

Public service 710,002 - 710,002

Operation and maintenance plant - 2,315,772 2,315,772

General institutional support 9,865,363 63,951 9,929,314

Scholarships, student grants and waivers

488,678 - 488,678

Total expenditures

24,986,231 2,379,723 27,365,954

Excess (deficiency) of revenues over expenditures (1,079,372) (156,026) (1,235,398)

OTHER FINANCING SOURCES

Operating transfers in (out)

245,640 - 245,640

Excess (deficiency) of revenues over expenditures and other

financing sources (833,732) (156,026) (989,758)

FUND BALANCE, July 1, 2015

4,839,886 2,713,329 7,553,215

FUND BALANCE, June 30, 2016

4,006,154$ 2,557,303$ 6,563,457$

72

Table of Contents

SPECIAL REVENUE FUNDS

Table of Contents

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

SPECIAL REVENUE FUNDS

COMBINING BALANCE SHEET

June 30, 2016

Liability, Total

Restricted Working Protection Special

Purposes Cash Audit & Settlement Revenue

Fund Fund Fund Fund Funds

ASSETS

Cash and cash equivalents (395,713)$ 1,260,270$ 12,749$ 332,135$ 1,209,441$

Investments 49,984 3,297,953 2,320 1,104,143 4,454,400

Receivables

Property taxes - - 35,542 585,027 620,569

Governmental claims 379,190 - - - 379,190

Other 8,476 - - - 8,476

Accrued revenue - 14,849 - 5,099 19,948

Deferred expenditures 5,596 - - 84,316 89,912

Due from other funds

5,337 -

-

5,337

TOTAL ASSETS

52,870$ 4,573,072$ 50,611$ 2,110,720$

6,787,273$

LIABILITIES

Accounts payable 11,735$ -$ -$ -$ 11,735$

Accrued salaries 1,725 - - 16,784 18,509

Other liabilities 57,555 - 3,400 35,774 96,729

Deferred revenue

Property taxes - - 19,829 292,619 312,448

Other liabilities

2,407

- - - 2,407

Total liabilities

73,422

- 23,229

345,177 441,828

FUND BALANCE

Reserved for grant purposes - - - - -

Reserved for liability, protection and

settlement - - - 1,765,543 1,765,543

Unreserved

(20,552)

4,573,072 27,382

- 4,579,902

Total fund balance

(20,552) 4,573,072 27,382 1,765,543 6,345,445

TOTAL LIABILITIES

AND FUND BALANCE

52,870$ 4,573,072$ 50,611$ 2,110,720$ 6,787,273$

73

Table of Contents

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

SPECIAL REVENUE FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCE

Year Ended June 30, 2016

Liability, Total

Restricted Working Protection Special

Purposes Cash Audit & Settlement Revenue

Fund Fund Fund Fund Funds

REVENUES

Local government

Property taxes

-$ -$ 35,971$ 428,091$ 464,062$

- - 35,971 428,091 464,062

State government sources

ICCB state grants 208,433 - - - 208,433

Other

5,699 - - - 5,699

214,132 - - - 214,132

Federal government sources

Financial aid 4,359,207 - - - 4,359,207

Other

821,158 - - -

821,158

5,180,365

-

- -

5,180,365

Investment income 427 39,104 31 14,357 53,919

Other sources

113,235 -

- 6,759 119,994

5,508,159 39,104 36,002

449,207 6,032,472

EXPENDITURES - EDUCATIONAL

AND GENERAL

Instruction 690,025 - - - 690,025

Academic support - - - - -

Student services and aids 297,045 - - - 297,045

Public service 162,954 - - - 162,954

Operating and Maintenance of Plant - - - 445,535 445,535

Institutional support 88,368 - 38,400 601,102 727,870

Scholarships, student grants, and waivers

4,289,498 -

- - 4,289,498

5,527,890 - 38,400

1,046,637 6,612,927

Excess (deficiency) of revenues over expenditures (19,731) 39,104 (2,398) (597,430) (580,455)

OTHER FINANCING SOURCES (USES)

Operating transfers (out)

10,000 (200,000)

- - (190,000)

Excess (deficiency) of revenues and other financing

sources over expenditures (9,731) (160,896) (2,398) (597,430) (770,455)

FUND BALANCE, July 1, 2015

(10,821) 4,733,968 29,780 2,362,973 7,115,900

FUND BALANCE (DEFICIT), June 30, 2016

(20,552)$ 4,573,072$ 27,382$ 1,765,543$ 6,345,445$

74

Table of Contents

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

RESTRICTED PURPOSES FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

Year Ended June 30, 2016

Budget Actual Variance

REVENUES

State government 313,970$ 214,132$ (99,838)$

Federal government 5,826,932 5,180,365 (646,567)

Investment income - 427 427

Other sources

61,768 113,235 51,467

Total revenues

6,202,670 5,508,159 (694,511)

EXPENDITURES - EDUCATIONAL AND GENERAL

Instruction 692,618 690,025 2,593

Student services and aids 290,652 297,045 (6,393)

Public service 195,000 162,954 32,046

Institutional support 88,364 88,368 (4)

Scholarships, student grants and waivers

4,987,268 4,289,498 697,770

Total expenditures

6,253,902 5,527,890 726,012

OTHER FINANCING SOURCES (USES)

Operating transfers (out)

26,482 10,000

(16,482)

Excess (deficiency) of revenues over expenditures

(24,750)$

(9,731) 15,019

FUND BALANCE, July 1, 2015

(10,821)

FUND BALANCE (DEFICIT), June 30, 2016

(20,552)$

75

Table of Contents

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

RESTRICTED PURPOSES FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE

Year ended June 30, 2016

Fund Fund

Balance Equity Balance

July 1, 2015 Revenues Expenditures Transfers June 30, 2016

State Government

CTE Program Improvement Grant 2,464$ -$ 2,464$ -$ -$

Adult Ed State Basic - 121,240 121,240 - -

Adult Ed Performance - 87,193 87,193 - -

NIU-ECE Innovation Grant - 2,699 2,699 - -

Early Childhood Grant

- 3,000 3,000 - -

Total state sources

2,464 214,132 216,596 - -

Federal Government

PELL Grant - 4,176,076 4,176,076 - -

SEOG grant - 94,767 94,767 - -

Federal work-study program - 88,364 88,364 - -

Dislocated workers center 475 - - - 475

Dislocated workers center 920 - - - 920

TRIO/Student Support Services (742) 283,280 296,645 10,000 (4,107)

Federal adult education grants - 128,895 128,895 - -

English Literacy/Civics - 15,987 15,987 - -

Carl Perkins Title II-C vocational grant 34,744 176,818 194,940 - 16,622

Early Learning Challenge - Race to the Top - 5,101 5,101 - -

Small Business Development Center (3,126) 80,914 79,329 - (1,541)

Small Business Jobs Act Grant 2,462 - (1) - 2,463

IL Network Area Manufacturers Grant

(54,945) 130,163 75,218 - -

Total federal sources

(20,212)

5,180,365 5,155,321 10,000

14,832

Other Sources

Small Business Development Match Funds (50,601) 33,525 73,683 25,000 (65,759)

Small Business Development Workshops 10,513 4,655 9,942 - 5,226

Inspire Illinois - 15,000 15,000 - -

Nursing Hospital Grant - 36,000 36,000 - -

Project UNIFY - 400 400 - -

Manufacturing Extension Program 24,111 - - (24,111) -

Bridge to Manufacturing - 5,000 2,289 - 2,711

Tuition Assistance Award - 18,655 18,655 - -

Restricted Fund Balance (interest)

22,904 427 4 (889) 22,438

Total other sources

6,927 113,662 155,973 - (35,384)

(10,821)$ 5,508,159$ 5,527,890$ 10,000$ (20,552)$

76

Table of Contents

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

WORKING CASH FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

Year Ended June 30, 2016

Budget Actual Variance

REVENUES

Investment income 20,000$ 39,104$ 19,104$

Other

- - -

Total revenues

20,000 39,104 19,104

EXPENDITURES - EDUCATIONAL AND GENERAL

Institutional support

- - -

Total expenditures

- -

-

Excess of revenues over expenditures 20,000 39,104 19,104

OTHER FINANCING USES

Operating transfers (out)

(70,000) (200,000) (130,000)

Excess of revenues over expenditures and other financing uses

(50,000)$

(160,896)

(110,896)$

FUND BALANCE, July 1, 2015

4,733,968

FUND BALANCE, June 30, 2016

4,573,072$

77

Table of Contents

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

AUDIT FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

Year Ended June 30, 2016

Budget Actual Variance

REVENUES

Local government

Property tax 37,708$ 35,971$ (1,737)$

Investment income

250 31 (219)

Total revenues

37,958 36,002 (1,956)

EXPENDITURES - EDUCATIONAL AND GENERAL

General institutional support

35,000 38,400 (3,400)

Total expenditures

35,000 38,400 (3,400)

Excess (deficiency) of revenues over expenditures

2,958$

(2,398)

(5,356)$

FUND BALANCE, July 1, 2015

29,780

FUND BALANCE, June 30, 2016

27,382$

78

Table of Contents

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

LIABILITY, PROTECTION AND SETTLEMENT FUND

SCHEDULE OF R

EVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

Year Ended June 30, 2016

Budget Actual Variance

REVENUES

Local government revenue

Property taxes 270,255$ 428,091$ 157,836$

Investment revenue 5,000 14,357 9,357

Other

- 6,759 6,759

Total revenues

275,255 449,207 173,952

EXPENDITURES - EDUCATION AND GENERAL

Operation and Maintenance of Plant 357,930 445,535 (87,605)

Institutional support

646,013 601,102

44,911

Total expenditures

1,003,943 1,046,637

(42,694)

Excess (deficiency) of revenues over expenditures

(728,688)$

(597,430)

131,258$

FUND BALANCE, July 1, 2015

2,362,973

FUND BALANCE, June 30, 2016

1,765,543$

79

Table of Contents

DEBT SERVICE FUND

Table of Contents

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

DEBT SERVICE FUND

BALANCE SHEET

June 30, 2016

Bond and

Interest Fund

ASSETS

Cas

h and cash equivalents 174,744$

Investments 633,972

Receivables

Property taxes 266,083

Accrued revenue

-

TOTAL ASSETS

1,074,799$

LIABILITIES

Interest payable 552$

Deferred revenue -

Property taxes

133,090

Total Liabilities 133,642

FUND BALANCE

Reserved for Debt Service

941,157

TOTAL LIABILITIES AND FUND BALANCE

1,074,799$

80

Table of Contents

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

DEBT SERVICE FUND

SCHEDULE OF R

EVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

Year Ended June 30, 2016

Bond and

Interest Fund

Budget Actual Variance

REVENUES

Local government revenue

Local taxes 1,267,175$ 766,417$ (500,758)$

Other sources

Investment revenue

1,000 1,942 942

Total revenues 1,268,175 768,359 (499,816)

EXPENDITURES

Institutional Support

Fixed charges 500 500 -

Bond principal 1,245,000 1,245,000 -

Interest and fees

22,188 19,594

2,594

Total expenditures

1,267,688

1,265,094 2,594

Excess of revenues over expenditures 487 (496,735) (502,410)

OTHER FINANCING USES

Transfer from (to) other funds

-

- -

Excess (deficiency) of revenues over expenditures

487$

(496,735)

(497,222)$

FUND BALANCE, July 1, 2015

1,437,892

FUND BALANCE, June 30, 2016

941,157$

81

Table of Contents

CAPITAL PROJECTS FUND

Table of Contents

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

CAPITAL PROJECTS FUND

BALANCE SHEET

June 30, 2016

Operations

and Maintenance

Fund (Restricted)

ASSETS

Cash and cash equivalents 112,188$

Investments 4,747,643

Receivables

Property taxes 1,493,152

Governmental claims 337,660

Accrued revenue

-

TOTAL ASSETS

6,690,643$

LIABILITIES

Accounts payable -$

Other liabilities 94,815

Deferred revenue

Property taxes 746,846

Other liabilities

-

TOTAL LIABILITIES 841,661

FUND BALANCE

Unreserved

5,848,982

TOTAL LIABILITIES AND FUND BALANCE

6,690,643$

82

Table of Contents

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

CAPITAL PROJECTS FU

ND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

Year Ended June 30, 2016

Operations

and Maintenance

Fund (Restricted)

Budget Actual Variance

REVENUES

Local government revenue

Property taxes 1,496,428$ 1,495,373$ (1,055)$

State government sources

Illinois Emergency Management Agency - 337,660 337,660

Capital Development Board matching contributions 235,000 - (235,000)

Other sources

Investment income 3,572 9,851 6,279

Other

- - -

Total revenues 1,735,000 1,842,884 107,884

EXPENDITURES - EDUCATIONAL AND GENERAL

Operation and Maintenance of Plant

2,977,071 2,485,326

491,745

Excess (deficiency) of revenues over expenditures (1,242,071) (642,442) 599,629

OTHER FINANCING SOURCES

Operating transfers (out)

- - -

Excess of revenues over expenditures and other financing sources

(1,242,071)$

(642,442)

599,629$

FUND BALANCE, July 1, 2015

6,491,424

FUND BALANCE, June 30, 2016

5,848,982$

83

Table of Contents

PROPRIETARY FUNDS

Table of Contents

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

PROPRIETARY FUNDS TYPES

SCHEDULE OF REVENUES, EXPENSES, AND

CHANGES IN NET POSITION

BUDGET AND ACTUAL

Year Ended June 30, 2016

Proprietary Fund Type

Enterprise Fund

Budget Actual

OPERATING REVENUES

Service fees 2,385,600$ 2,086,988$

Other revenue

- 5,271

Total operating revenues

2,385,600 2,092,259

OPERATING EXPENSES

Salaries 339,239 318,734

Employee benefits 89,872 76,597

Contractual services 42,230 37,598

General materials and supplies 1,973,765 1,773,473

Travel and conference/meeting expense 28,430 27,013

Fixed charges 45,150 43,466

Depreciation 5,748 21,910

Other

111,500 106,503

Total operating expenses

2,635,934 2,405,294

Operating (loss) (250,334) (313,035)

NONOPERATING REVENUES (EXPENSES)

Interest expense - (1,684)

Investment income

3,000 2,323

LOSS BEFORE OPERATING TRANSFERS (247,334) (312,396)

OPERATING TRANSFERS OUT

(475,336) 20,774

NET INCOME (LOSS)

(722,670)$

(291,622)

NET POSITION, July 1, 2015

2,351,119

NET POSITION, June 30, 2016

2,059,497$

84

Table of Contents

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

PROPRIETARY FUNDS TYPES

SCHEDULE OF CASH FLOWS

Year Ended June 30, 2016

Enterprise

Fund

OPERATING ACTIVITIES

Cash receipts from customers 2,176,856$

Cash payments to employees for service (324,179)

Cash payments to vendors

(1,924,011)

Net cash used in operating activities

(71,334)

NONCAPITAL FINANCING ACTIVITIES

Transfers in (out) 20,774

Net (increase) / decrease in due from other funds

-

Net cash used in noncapital financing activities

20,774

CAPITAL AND RELATED FINANCING ACTIVITIES

Acquisition of capital assets (72,438)

Disposition of capital assets

-

Net cash used in capital and related financing activities

(72,438)

INVESTING ACTIVITIES

Interest on capital lease (1,684)

Purchase of investments (400)

Income from investments 1,754

Principal paid on capital lease (15,449)

Proceeds from capital leases 72,438

Gifts and contributions

-

Net cash provided by investing activities

56,659

NET INCREASE IN CASH AND CASH EQUIVALENTS (66,339)

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR

726,501

CASH AND CASH EQUIVALENTS, END OF YEAR

660,162$

Reconciliation of Operating Loss to Net Cash Flows

Used In Operating Activities

Operating profit (loss) (313,035)$

Adjustments to reconcile operating loss to net cash

flows from operating activities

Depreciation 21,910

Effects of changes in assets and liabilities

Receivable 84,597

Prepaid expenditures (32,824)

Inventory 193,476

Accounts payable (12,049)

Accrued Salaries (5,445)

Other accruals

(7,964)

Net Cash Used In Operating Activities

(71,334)$

85

Table of Contents

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

PROPRIETARY FUNDS TYPE

COMBINING BALANCE SHEET

June 30, 2016

Fitness Total

Early Information Student Cultural Center Copy Farm Massage Auto Enterprise

Childhood

Technology Technology Bookstore Services Athletics Contracts Center Plots Therapy Shop Fund

ASSETS

Cash and cash equivalents 1,866$ 42,900$ 72,456$ 468,106$ 967$ 5,654$ 5,296$ (29,223)$ 22,616$ 9,051$ 60,473$ 660,162$

Investments - 124,000 220,000 124,488 - - - - - 12,000 - 480,488

Receivables - - - 82,873 - - - - - - - 82,873

Other assets - - - 571 - - - - - - - 571

Inventories - - - 814,524 - - - - - - - 814,524

Prepaid expenditures - - - 60,862 - - - - - - - 60,862

Fixed assets (net of depreciation)

- - - 1,255 - 54,637 - 2,994 - - - 58,886

TOTAL ASSETS

1,866$ 166,900$ 292,456$ 1,552,679$ 967$ 60,291$ 5,296$ (26,229)$ 22,616$ 21,051$ 60,473$ 2,158,366$

LIABILITIES

Accounts payable -$ -$ -$ 15,493$ -$ -$ -$ -$ -$ -$ -$ 15,493$

Accrued Salaries - - - 8,287 - 3,302 - 3,165 - - - 14,754

Other accruals - - - 11,379 - - - - - - 254 11,633

Capital Leases

- - - - - 56,989 - - - - - 56,989

TOTAL LIABILITIES

- - - 35,159 - 60,291 - 3,165 - - 254 98,869

NET POSITION

Unreserved

1,866 166,900 292,456 1,517,520 967 - 5,296 (29,394) 22,616 21,051 60,219 2,059,497

Total net position (deficit)

1,866 166,900 292,456 1,517,520 967 - 5,296 (29,394) 22,616 21,051 60,219 2,059,497

TOTAL LIABILITIES

AND NET POSITION

1,866$

166,900$

292,456$

1,552,679$ 967$

60,291$

5,296$ (26,229)$ 22,616$ 21,051$ 60,473$ 2,158,366$

86

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ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

PROPRIETARY FU

NDS TYPES

COMBINING SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION

Year Ended June 30, 2016

Fitness Total

Early Information Student Cultural Center Copy Farm Massage Auto Enterprise

Childhood Technology Technology Bookstore Services Athletics Contracts Center Plots Therapy Shop Fund

OPERATING REVENUES

Service fees 61$ -$ -$ 1,926,615$ -$ 7,533$ 2,766$ 103,565$ -$ -$ 46,448$ 2,086,988$

Other

- - - 3,781 - 1,490 - - - - - 5,271

Total operating revenues

61 - - 1,930,396 - 9,023 2,766 103,565 - - 46,448 2,092,259

OPERATING EXPENSES -

AUXILIARY ENTERPRISES

Current operations 11 - - 2,005,892 3,700 217,017 2,737 112,527 - 1,500 40,000 2,383,384

Depreciation

- - - 337 357 18,185 - 593 - - 2,438 21,910

Total operating expenses

11 - - 2,006,229 4,057 235,202 2,737 113,120 - 1,500 42,438 2,405,294

Operating income (loss) 50 - - (75,833) (4,057) (226,179) 29 (9,555) - (1,500) 4,010 (313,035)

NONOPERATING REVENUES (EXPENSES)

Interest expense - - - - - (1,684) (1,684)

Investment income

- - - 2,323 - - - - - - - 2,323

Total nonoperating revenues

- - - 2,323 - (1,684) - - - - - 639

INCOME (LOSS) BEFORE

TRANSFERS 50 - - (73,510) (4,057) (227,863) 29 (9,555) - (1,500) 4,010 (312,396)

OPERATING TRANSFERS IN (OUT)

- - (40,640) (167,726) - 229,140 - - - - - 20,774

NET INCOME (LOSS) 50 - (40,640) (241,236) (4,057) 1,277 29 (9,555) - (1,500) 4,010 (291,622)

NET POSITION

BEGINNING OF YEAR

1,816 166,900 333,096 1,758,756 5,024 (1,277) 5,267 (19,839) 22,616 22,551 56,209 2,351,119

NET POSITION

END OF YEAR

1,866$ 166,900$ 292,456$ 1,517,520$ 967$ -$ 5,296$ (29,394)$ 22,616$ 21,051$ 60,219$ 2,059,497$

87

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ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

RECONCILIATION OF THE COMBINED BALANCE SHEET - ALL FUND TYPES -

TO THE STATEMENT OF NET POSITION

Year Ended June 30, 2016

Fund balances - All fund types 83,874,244$

Summer tuition 153,755

Long-term debt (265,000)

SURS deferred outflows

51,813

Statement of net position

83,814,812$

Net change in fund balance

(3,191,012)$

Reduction to revenue for payments made on behalf for SURS 6,460,158

Reduction to expenditures for payments made on behalf for SURS

(6,460,158)

Net effect -

Internal charges removed for auxiliary revenues (7,586)

Internal charges removed for auxiliary expenses

7,586

Net effect -

Reduction in student tuition and fees 3,049,455

Reduction in student services - financial aid

(3,049,455)

Net effect -

Decrease in student tuition receivable 3,393,282

Decrease in deferred student tuition revenue

(3,393,282)

Net effect -

Summer tuition 153,755

SURS deferred outflows 51,813

Expenditures for capital assets 2,624,063

Depreciation on capital assets (2,486,033)

Retirement of indebtedness expenditures

1,245,000

Increase (decrease) in net position

(1,602,414)$

RECONCILIATION OF THE COMBINED STATEMENT OF CHANGES IN FUND BALANCES - ALL FUND TYPES

TO THE STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION

Year Ended June 30, 2016

88

Table of Contents

FIDUCIARY FUND

Table of Contents

Student Activity Fund

Balance

July 1, 2015

Additions

Sales/Fees

Subtractions

Expenditures

Student Activity

Fund Transfers

Balance

June 30, 2016

ASSETS

Cash and cash equivalents 245,801$ 1,403,679 1,473,322 -$ 176,158$

Student Grants Receivable - 642,384 422,928 - 219,456

Student Tuition Receivable 85 11,892 11,977 - -

Due from other funds - 12,675 12,675 - -

TOTAL ASSETS 245,886$ 2,070,630$ 1,920,902$ -$ 395,614$

LIABILITIES

Accounts payable 7,301$ 381,227$ 381,664$ -$ 6,864$

Other accrued expenditures 3,499 132,758 134,460 - 1,797

Due to other funds 79,576 1,365,429 1,224,602 - 220,403

Deferred Revenue - 19,783 - - 19,783

90,376 1,899,197 1,740,726 - 248,847

Due to student groups

General-Standard fees 28,660 138,600 33,561 (115,428) 18,271

Student Activity: Interest 876 51 120 - 807

Organizational Reserve 725 - - - 725

ISAC:MAP - 493,612 493,612 - -

IL 9/11 Veterans Grant (3,058) 143,127 143,127 - (3,058)

Foundation Scholarships - 248,550 248,550 - -

Subsidized Loans - 688,384 688,384 - -

Unsubsidized Loans - 488,701 488,701 - -

Direct Plus Loans - 2,394 2,394 - -

Outside Scholarships -

116,849 116,849

- -

Scholarships 9,791 - - - 9,791

Textbook Buyback Loans 558 - 558 - -

IV Leader 4,271 - 9,369 5,098 -

SPAMO 7,740 3,157 5,893 2,000 7,004

Criminal Justice 3,203 - 3,102 3,000 3,101

River Currents (4) - 1,633 1,637 -

Student Nurses Association 2,184 4,768 12,300 6,500 1,152

Alpha Beta Nu

1,019 630

783 200 1,066

Focus on Fitness 1,553 158 2,943 2,050 818

Phi Theta Kappa 1,657 3,817 12,128 6,654 -

Honors Program - 155 361 450 244

Student Government Association (165) - 1,622 2,020 233

Indefinite Limit 2,837 418 523 750 3,482

Horticulture Club 6,538.00 220.00 1,999.00

(4,759.00) -

I

nternational Society 2,587 - 1,002 - 1,585

American Chemical Society 958 2,610 5,994 3,000 574

Diverse Universe 1,946 79 2,368 2,300 1,957

Human Services Organization 1,565 210 1,416 1,000 1,359

Human Service Honors 611 80 560 400 531

Student Educators 2,265 250 240 300 2,575

Physics Club 176 - - (176) -

Student Veterans 606 - 447 383 542

Student Ambassadors (386) - 1,025 1,411 -

Sigma Kappa Delta 1,933 1,664 1,307 200 2,490

(Continued) -

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

FIDUCIARY FUND TYPE

SCHEDULE OF CHANGES IN ASSETS AND LIABILITIES

Year ended June 30, 2016

89

Table of Contents

Student Activity Fund

Balance

July 1, 2015

Additions

Sales/Fees

Subtractions

Expenditures

Student Activity

Fund Transfers

Balance

June 30, 2016

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

FIDUCIARY FUND TYPE

SCHEDULE OF CHANGES IN ASSETS AND LIABILITIES

Year ended June 30, 2016

LIABILITIES (Continued)

Gay/Straight Alliance 2,212$ 296$ 19$ 450$ 2,939$

PSI Beta/Psychology 3,573 - 99 100 3,574

Round Table Gaming Society 634 - 110 150 674

Leaders for Service 1,110 539 475 200 1,374

Information Technology 1,767 - - - 1,767

Economics Association 63 - 230 200 33

SAGE 494 - 12 12 494

Chess Club - - 45 150 105

Red Cross 200 195 1,044 649 -

Anime Club 722 - 188 200 734

Black Student Association 399 1,347 871 400 1,275

World Languages 1,679 - - (1,000) 679

Young Republicans 304 - 163 160 301

College Democrats 809 220 289 300 1,040

Wellness Club 42

- - -

42

Sigma Delta Mu 1,631 - - (1,000) 631

Automotive Club - - - 250 250

Short Term Loan Base 3,068 12,217 12,217 - 3,068

Employee Cafeteria Plan 2,391 - - - 2,391

Athletic Boosters 747 11,228 - (3,574) 8,401

Leadership Development 866 - - - 866

ACT Testing Program 251 - - - 251

IVCC River Project 91

202 5 -

288

Library Gift Memorial 16,927 2,045 32 - 18,940

Disc Golf Course 70 200 143 275 402

Women's Basketball 7,475 380 2,174 - 5,681

Unrestricted Gifts 18 - - - 18

Baseball 3,441 10,276 8,513 - 5,204

Softball 320 21,171 22,565

1,074 -

Go

lf 9,847 5,459 2,823 - 12,483

Women's Tennis 226 5,088 7,427 2,113 -

IBOS (Child Care) 508 - - - 508

MIMIC 3,462 1,986 1,705 - 3,743

Project Success Leadership 251 3,596 3,789 100 158

Athletic Fundraiser (3,000.00) - - 3,000.00 -

Soccer/Men's - 250 - - 250

Soccer/Women's - - 46 - (46)

Volleyball 6,150 4,834 5,014 - 5,970

Men's Tennis 922 10,191 11,500 387 -

Basketball 2,465 4,008 2,113 - 4,360

First Care Plan - 1,449 1,449 - -

Support Staff Service Project 400 6,732 5,831 - 1,301

GED Service Project 1,340 - 960 - 380

Family Reading Night 525 - -

- 525

Women's History Month 464 - -

- 464

To

tal Due to Student Groups 155,510 2,442,393 2,374,722 (76,414) 146,767

TOTAL LIABILITIES 245,886$ 4,341,590$ 4,115,448$ (76,414)$ 395,614$

90

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ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

SCHEDULE OF ASSESSED VALUATIONS, TAX RATES, AND EXTENSIONS

Tax Levy Year

2015 2014 2013

ASSESSED VALUATIONS

County

LaSalle 2,178,150,421$ 2,172,165,422$ 2,198,407,811$

Bureau 480,908,216 476,047,089 477,926,945

DeKalb 1,921,187 1,838,728 1,746,047

Grundy 20,140,050 19,564,743 19,452,681

Lee 45,989,457 46,029,963 44,986,946

Marshall 79,594,741 77,337,212 74,397,767

Putnam 150,006,366 146,079,575 148,183,831

Livingston

55,530,475 55,320,527 55,195,842

3,012,240,913$

2,994,383,259$ 3,020,297,870$

TAX RATES (PER $100 ASSESSED VALUATION)

General Fund

Education Account 0.1300 0.1300 0.1300

Additional tax 0.1263 0.0981 0.0943

Operations and Maintenance Account 0.0400 0.0400 0.0400

Operations and Maintenance Restricted Fund 0.0500 0.0500 0.0493

Bond and Interest 0.0089 0.0423 0.0421

Audit Fund 0.0012 0.0013 0.0012

Social Security 0.0091 0.0090 0.0083

Liability, Protection & Settlement Fund

0.0105 -

-

0.3760 0.3707

0.3652

TAX EXTENSIONS

General Fund

Education Account 3,915,913$ 3,892,698$ 3,926,387$

Additional tax 3,804,460 2,937,490 2,848,141

Operations and Maintenance Account 1,204,896 1,197,753 1,208,119

Operations and Maintenance Restricted Fund 1,506,120 1,497,192 1,492,027

Bond and Interest Fund 268,692 1,266,555 1,268,456

Audit Fund 35,846 37,729 36,244

Social Security 273,588 270,692 250,685

Liability, Protection and Settlement Fund

317,113 - -

11,326,628$ 11,100,109$ 11,030,059$

91

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ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

SUMMARY OF TAXES RECEIVABLE, TAX COLLECTIONS, AND LEGAL DEBT MARGIN

Year Ended June 30, 2016

2015 2014

TAX EXTENSIONS

General Fund

Education Account 3,915,913$ 3,892,698$

Additional tax 3,804,460 2,937,490

Operations and Maintenance Account 1,204,896 1,197,753

Operations and Maintenance Restricted Fund 1,506,120 1,497,192

Bond and Interest Fund 268,692 1,266,555

Audit Fund 35,846 37,729

Liability, Protection and Settlement Fund 317,113 -

Social Security

273,588 270,692

11,326,628$ 11,100,109$

ASSESSED VALUATION

3,012,240,913$ 2,994,383,259$

COMBINED RATE

0.3760 0.3707

TAXES EXTENDED

11,326,628$ 11,100,109$

TAXES COLLECTED TO June 30, 2015

-$

3,816$

TAXES COLLECTED DURING YEAR ENDED JUNE 30, 2016

4,028$ 11,003,035$

PERCENT COLLECTED TO June 30, 2016 0.04% 99.16%

UNCOLLECTED AT June 30, 2016

General Fund

Education Account 3,891,314$

Additional tax 2,936,445

Operations and Maintenance Account 1,197,327

Operations and Maintenance Restricted Fund 1,496,660

Bond and Interest Fund 1,266,105

Audit Fund 37,716

Social Security

497,033

11,322,600$

Assessed valuation - 2015 levy

3,012,240,913$

Debt limit - 2.875% of assessed valuation 86,601,926$

Bonded indebtedness

265,000

Legal debt margin

86,336,926$

92

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UNIFORM FINANCIAL SCHEDULES

Table of Contents

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

UNIFORM FINANCIAL SCHEDULE NO. 1

SCHEDULE OF ALL FUNDS

Year Ended June 30, 2016

Education

Fund

Operations and

Maintenance

Fund

Operations and

Maintenance

Restricted Fund

Bond and

Interest

Fund

Auxiliary

Enterprises

Fund

Restricted

Purposes Fund

Working

Cash Fund

Audit Fund

Liability,

Protection and

Settlement

Fund

Total

FUND BALANCE, July 1, 2015

4,839,886$ 2,713,329$ 6,491,424$ 1,437,892$ 2,351,119$ (10,821)$ 4,733,968$ 29,780$ 2,362,973$ 24,949,550$

Revenues

Local tax revenue 7,200,485 1,196,304 1,495,373 766,417 - - - 35,971 428,091 11,122,641

All other local revenue 1,380,488 303,039 - - - - - - 1,683,527

ICCB grants 611,896 - - - - 208,433 - - - 820,329

All other state revenue - - 337,660 - - 5,699 - - - 343,359

Federal revenue 6,467 - - - - 5,180,365 - - - 5,186,832

Student tuition and fees 7,817,345 558,755 - - - - - - - 8,376,100

All other revenue

430,020 165,599

9,851 1,942 2,094,582 113,662 39,104 31 21,116 2,875,907

Total revenues

17,446,701 2,223,697 1,842,884 768,359 2,094,582 5,508,159 39,104 36,002 449,207 30,408,695

Expenditures

Instruction 10,917,168 - - - - 690,025 - - - 11,607,193

Academic support 1,360,663 - - - - - - - - 1,360,663

Student services 1,644,357 - - - - 297,045 - - - 1,941,402

Public Service/Continuing Education 710,002 - - - - 162,954 - - - 872,956

Auxiliary services - - - - 2,405,294 - - - - 2,405,294

Operation and maintenance of plant - 2,315,772 2,485,326 - - - - - 445,535 5,246,633

Institutional support 3,405,205 63,951 -

500

- 88,368 -

38,400

601,102 4,197,526

Scholarships, student grants, and waivers 488,678 - - - - 4,289,498 - - - 4,778,176

Debt service

Principal - - -

1,245,000

- - - - - 1,245,000

Interest

- - - 19,594 1,684 - - - - 21,278

Total expenditures

18,526,073 2,379,723 2,485,326 1,265,094 2,406,978 5,527,890 - 38,400 1,046,637 33,676,121

Net transfers

245,640 -

- - 20,774 10,000 (200,000) - - 76,414

FUND BALANCE, June 30, 2016

4,006,154$ 2,557,303$ 5,848,982$ 941,157$ 2,059,497$ (20,552)$ 4,573,072$ 27,382$ 1,765,543$ 21,758,538$

93

Table of Contents

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

UNIFORM FINANCIAL SCHEDULE NO. 2

SCHEDULE OF CHANGES IN CAPITAL ASSETS AND GENERAL LONG-TERM DEBT

Year Ended June 30, 2016

Balance Additions/ Balance

July 1, 2015 Accretion Deletions June 30, 2016

FIXED ASSETS

Land 1,361,598$ -$ -$ 1,361,598$

Site improvements 8,035,437 124,070 - 8,159,507

Buildings 71,180,598 2,737,129 - 73,917,727

Buildings - Construction in Process 732,549 250,751 (732,549) 250,751

Equipment 5,241,395 64,517 - 5,305,912

Equipment - Construction in Process - - - -

Proprietary equipment 7,077,209 72,438 (5,009) 7,144,638

Technology 2,673,526 180,145 - 2,853,671

Library

1,288,543 - - 1,288,543

TOTAL FIXED ASSETS 97,590,855 3,429,050 (737,558) 100,282,347

Accumulated Depreciation

35,604,821

2,507,943 (5,009)

38,107,755

NET FIXED ASSETS

61,986,034$ 921,107$

(732,549)$ 62,174,592$

FIXED DEBT

Bonds payable 1,510,000$ -$ (1,245,000)$ 265,000$

Capital lease payable

-

72,438 (15,449) 56,989

TOTAL LONG-TERM DEBT

1,510,000$ 72,438$ (1,260,449)$

321,989$

94

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ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

UNIFORM FINANCIAL SCHEDULE NO. 3

SCHEDULE OF OPERATING FUND REVENUES AND EXPENDITURES

Year Ended June 30, 2016

Operations

and

Maintenance Total

Education Operational Operating

Fund Fund Funds

OPERATING REVENUES BY SOURCE

Local government

Local taxes 7,200,485$ 1,196,304$ 8,396,789$

Corporate personal property replacement tax 1,001,662 176,764 1,178,426

Chargeback revenue - - -

Other

378,826 126,275 505,101

Total local government

8,580,973 1,499,343 10,080,316

State government

ICCB credit hour grants 561,896 - 561,896

ICCB equalization grants 50,000 - 50,000

CTE formula grant - - -

Other

-

- -

Total state government

611,896 -

611,896

Federal Government

Department of Education 6,467 - 6,467

American Recovery and Reinvestment Act

- - -

Total federal government

6,467 -

6,467

Student tuition and fees

Tuition 7,000,797 558,755 7,559,552

Fees

816,548 - 816,548

Total student tuition and fees

7,817,345 558,755

8,376,100

Other sources

Sales and service fees 313,184 - 313,184

Facilities revenue - 158,765 158,765

Investment revenue 5,748 4,581 10,329

Nongovernmental grants - - -

Other

111,088

2,253 113,341

Total other sources

430,020 165,599 595,619

TOTAL REVENUES 17,446,701 2,223,697 19,670,398

Less nonoperating items

Tuition chargeback revenue

- - -

ADJUSTED REVENUES

17,446,701$ 2,223,697$ 19,670,398$

95

Table of Contents

ILLINOIS VALLEY COMMUNITY COLLEGE

DISTRICT No. 513

UNIFORM FINANCIAL SCHEDULE NO. 3

SCHEDULE OF OPERATING FUND REVENUES AND EXPENDITURES (Continued)

Year Ended June 30, 2016

Operations

and

Maintenance Total

Education Operational Operating

Fund Fund Funds

OPERATING EXPENDITURES

By Program

Instruction 10,917,168$ -$ 10,917,168$

Academic support 1,360,663 - 1,360,663

Student services and aids 1,644,357 - 1,644,357

Public service 710,002 - 710,002

Operations and maintenance of plant - 2,315,772 2,315,772

General institutional support 3,405,205 63,951 3,469,156

Scholarships, grants and waivers

488,678 -

488,678

Total expenditures 18,526,073 2,379,723 20,905,796

Operating transfers

(245,640) -

(245,640)

Total expenditures and transfers

18,280,433

2,379,723 20,660,156

Less non-operating items - tuition chargeback

19,838 - 19,838

ADJUSTED EXPENDITURES

18,260,595$ 2,379,723$

20,640,318$

By Object

Salaries 12,582,275$ 903,956$ 13,486,231$

Employee benefits 2,575,066 250,466 2,825,532

Contractual services 1,088,167 155,553 1,243,720

General materials and supplies 1,283,706 286,810 1,570,516

Library materials* 99,145 - 99,145

Conference and meeting expenses 121,258 1,797 123,055

Fixed charges 190,841 63,569 254,410

Utilities 38,278 763,977 802,255

Capital outlay 136,368 16,595 152,963

Other 510,114 (63,000) 447,114

Scholarships, grants and waivers*

488,678 - 488,678

Total expenditures 18,526,073 2,379,723 20,905,796

Operating transfers

(245,640) - (245,640)

Total expenditures and transfers 18,280,433 2,379,723 20,660,156

Less nonoperating items - tuition chargeback

19,838 - 19,838

ADJUSTED EXPENDITURES

18,260,595$ 2,379,723$ 20,640,318$

*Non-add line

96

Table of Contents

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

UNIFORM FINANCIAL SCHEDULE NO. 4

RESTRICTED PURPOSES FUND REVENUES AND EXPENDITURES

Year Ended June 30, 2016

Restricted

Purposes Fund

REVENUE BY SOURCE

State government

Illinois Community College Board

Career and Technical Education -$

Adult Education 208,433

Other

5,699

Total state government

214,132

Federal government

Department of Education 4,969,288

Department of Labor 130,163

Small Business Administration

80,914

Total federal government

5,180,365

Other sources

Other

113,662

Total other sources

113,662

TOTAL RESTRICTED PURPOSES FUND REVENUES

5,508,159$

EXPENDITURES BY PROGRAM

Instruction 690,025$

Student services 297,045

Public services/continuing education 162,954

Institutional support 88,368

Scholarships, student grants, and waivers

4,289,498

TOTAL RESTRICTED PURPOSES FUND EXPENDITURES BY PROGRAM

5,527,890$

EXPENDITURES BY OBJECT

Salaries 829,915$

Employee benefits 227,380

Contractual services 30,160

General materials and supplies 71,484

Library materials* -

Travel and conference/meeting expense 29,520

Fixed charges -

Utilities 2,442

Capital outlay 40,895

Other 4,296,094

Student grants and scholarships*

4,289,498

TOTAL RESTRICTED PURPOSES FUND EXPENDITURES BY OBJECT

5,527,890$

*Non-add line

97

Table of Contents

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

UNIFORM FINANCIAL SCHEDULE NO. 5

CURRENT FUNDS* EXPENDITURES BY ACTIVITY

Year Ended June 30, 2016

INSTRUCTION

Instructional Programs 11,607,193$

Other

-

Total instruction

11,607,193

ACADEMIC SUPPORT

Library Center 366,333

Instructional Materials Center 251,945

Academic Computing Support 742,385

Academic Administration and Planning -

Other

-

Total academic support

1,360,663

STUDENT SERVICES

Admissions and Records 375,265

Counseling and Career Guidance 1,015,142

Financial Aid Administration 368,367

Social and Cultural Development 17,811

Administration 160,432

Other

4,385

Total student services

1,941,402

PUBLIC SERVICE/CONTINUING EDUCATION

Community Education 388,072

Customized Training (instructional) 221,426

Professional Development -

Community Services 162,954

Administration 100,504

Other

-

Total public service/continuing education

872,956

AUXILIARY SERVICES

2,406,978

OPERATIONS AND MAINTENANCE OF PLANT

Maintenance 1,839

Custodial Services 405,150

Grounds 695,105

Campus Security 443,696

Utilities 868,849

Administration

346,668

Total operations and maintenance of plant

2,761,307

INSTITUTIONAL SUPPORT

Executive Management 625,785

Fiscal Operations 562,068

Community Relations 378,119

Administrative Support Services 273,986

Board of Trustees 15,335

General Institution 1,024,874

Institutional Research 145,716

Administrative Data Processing 1,082,779

Other

88,364

Total institutional support

4,197,026

SCHOLARSHIPS, STUDENT GRANTS, AND WAIVERS

4,778,176

TOTAL CURRENT FUNDS EXPENDITURES

29,925,701$

*Current Funds include the Education; Operations and Maintenance; Auxiliary

Enterprises; Restricted Purposes; Audit; Liability, Protection and Settlement;

and PBC Operations and Maintenance Funds.

98

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ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

SCHEDULE OF EXPENDITURES FOR STUDENTS

FEDERAL AWARDS PROGRAM

Year Ended June 30, 2016

EXPENDITURES

PELL Grant Program

Federal award

4,176,076$

Supplemental Educational Opportunity

Grant program

94,767$

Federal Work-Study Program

88,364$

TOTAL FEDERAL WORK-STUDY PROGRAM

88,364$

99

Table of Contents

CERTIFICATION OF CHARGEBACK REIMBURSEMENT

Table of Contents

100

Table of Contents

COMPLIANCE SECTION

Table of Contents

ICCB STATE GRANT FINANCIAL – COMPLIANCE SECTION

Table of Contents

101

INDEPENDENT AUDITOR’S REPORT ON THE

GRANT PROGRAM FINANCIAL STATEMENTS

Board of Directors

Illinois Valley Community College

Illinois Community College District #513

Oglesby, Illinois

Report on the Financial Statements

We have audited the accompanying financial statements of the State Adult Education and Family Literacy

Grants, Career and Technical Education-Program Improvement Grant, and the Student Life Space Grant

of Illinois Valley Community College, Illinois Community College District #513 as of and for the year ended

June 30, 2016, and the related notes to the ICCB grant program financial statements, as listed in the table

of contents.

Management’s Responsibility

Management is responsible for the preparation and fair presentation of these financial statements in

accordance with accounting principles generally accepted in the United States of America; this includes

the design, implementation, and maintenance of internal control relevant to the preparation and fair

presentation of the financial statements that are free from material misstatement, whether due to fraud or

error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We

conducted our audit in accordance with auditing standards generally accepted in the United States of

America, the standards applicable to financial audits contained in Government Auditing Standards, issued

by the Comptroller General of the United States, and the grant policy guidelines of the Illinois Community

College Board's Fiscal Management Manual. Those standards and guidelines require that we plan and

perform the audit to obtain reasonable assurance about whether the financial statements are free from

material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in

the financial statements. The procedures selected depend on the auditor’s judgment, including the

assessment of the risks of material misstatement of the financial statements, whether due to fraud or

error. In making those risk assessments, the auditor considers internal control relevant to the entity’s

preparation and fair presentation of the financial statements in order to design audit procedures that are

appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of

the College’s internal control. Accordingly, we express no such opinion. An audit also includes

evaluating the appropriateness of accounting policies used and the reasonableness of significant

accounting estimates made by management, as well as evaluating the overall presentation of the financial

statements. Our audit also included a review of compliance with the provisions of laws, regulations,

contracts, and grants between the College and the State of Illinois and Illinois Community College

Board (ICCB).

102

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

our opinion, and the College is in compliance with the provisions of laws, contracts, and ICCB policy

guidelines for restricted grants.

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the

financial position of the State Adult Education and Family Literacy Grants, Career and Technical

Education-Program Improvement Grant, and the Student Life Space Grant of Illinois Valley Community

College, Illinois Community College District #513 as of June 30, 2016, and the changes in financial

position thereof and for the year ended in accordance with accounting principles generally accepted in the

United States of America.

Compliance

In connection with our audit, nothing came to our attention that caused us to believe that Illinois Valley

Community College, Illinois Community College #513 failed to materially comply with the provisions of

laws, regulations, contracts and grants between Illinois Valley Community College and the State of Illinois

and the Illinois Community College Board. However, our audit was not directed primarily toward obtaining

knowledge of all such noncompliance. Accordingly, had we performed additional procedures, other

matters may have come to our attention regarding the College's noncompliance with the above

referenced laws, regulations, contracts and grants. We also believe that the College is materially in

compliance with the provisions of laws, contracts, and ICCB policy guidelines with respect to restricted

grants.

Emphasis of Matter

As discussed in Note 1, the financial statements present only the State Adult Education and Family

Literacy Grants, Career and Technical Education-Program Improvement Grant, and the Student Life

Space Center Grant and do not purport to, and do not, present fairly the financial position of Illinois Valley

Community College, Illinois Community College District #513, the changes in its financial position, or

where applicable, its cash flows for the year then ended in accordance with accounting principles

generally accepted in the United States of America. Our opinion is not modified with respect to this

matter.

Sterling, Illinois

October 11, 2016

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

STATE ADULT EDUCATION AND FAMILY LITERACY GRANT

BALANCE SHEET

June 30, 2016

Total

(Memorandum

State Basic Performance Only)

ASSETS

Grants receivable

-$ -$ -$

LIABILITIES AND FUND BALANCE

Due to other funds - - -

Fund balance - restricted

- - -

TOTAL LIABILITIES AND FUND BALANCE

-$ -$ -$

See Notes to ICCB Grant Programs Financial Statements.

103

Table of Contents

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

STATE ADULT EDUCATION AND FAMILY LITERACY GRANT

COMBINED SCHEDULE OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCE

Year Ended June 30, 2016

Total

(Memorandum

State Basic Performance Only)

REVENUES

Grant revenue

121,240$ 87,193$ 208,433$

EXPENDITURES BY PROGRAM

Instruction 66,631 - 66,631

Social Work Services 15,201 24,500 39,701

Guidance Services 12,183 25,850 38,033

Assistive and Adaptive Equipment - - -

Assessment and Testing - - -

Student Transportation Services - - -

Literacy Services - - -

Child Care Services

- -

-

Instructional and Student Services 94,015 50,350 144,365

Improvement of Instructional Services - -

General Administration 15,269 10,350 25,619

Operation and Maintenance of Plant Services -

Workforce Coordination 15,800 15,800

Data and Information Services 11,956 10,693 22,649

Approved Indirect Costs

- -

-

Program Support

27,225 36,843

64,068

TOTAL EXPENDITURES

121,240

87,193 208,433

Excess revenues over expenditures - - -

FUND BALANCE, July 1, 2015

- - -

FUND BALANCE, June 30, 2016

-$ -$ -$

See Notes to ICCB Grant Programs Financial Statements.

104

Table of Contents

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

STATE ADULT EDUCATION AND FAMILY LITERACY GRANT

EXPENDITURE AMOUNTS AND PERCENTAGES FOR ICCB GRANTS ONLY

Year Ended June 30, 2016

State

Basic

Audited Expenditure

Amount

Actual Expenditure

Percentage

Instruction

(45% Minimum Required)

$66,631 54.96%

General Administration

(15% Maximum Allowed)

$15,269 12.59%

See Notes to ICCB Grant Programs Financial Statements.

105

Table of Contents

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

CAREER AND TECHNICAL EDUCATION - PROGRAM IMPROVEMENT

BALANCE SHEET

as of June 30, 2016

ASSETS

Cash

-$

LIABILITIES AND FUND BALANCE

Fund balance - restricted

-$

See Notes to ICCB Grant Programs Financial Statements.

106

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ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

CAREER AND TECHNICAL EDUCATION - PROGRAM IMPROVEMENT GRANT

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

Year Ended June 30, 2016

Actual

REVENUE

State sources

-$

EXPENDITURES

Current year's grant

Salaries -

Employee benefits -

Contractual services -

Materials and supplies 644

Conference and meeting expenses -

Utilities -

Capital 1,820

Other -

Total expenditures

2,464

Excess of revenues over expenditures (2,464)

FUND BALANCE, July 1, 2015

2,464

FUND BALANCE, June 30, 2016

-$

107

Table of Contents

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

STUDENT LIFE SPACE

SPECIAL INITIATIVE GRANT

BALANCE SHEET

June 30, 2016

ASSETS

Cash -$

LIABILITIES AND FUND BALANCE

Due to other funds -$

Fund balance - unrestricted -

TOTAL LIABILITIES AND FUND BALANCE -$

See Notes to ICCB Grant Programs Financial Statements.

108

Table of Contents

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

STUDENT LIFE SPACE

SPECIAL INITIATIVE GRANT

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

Year Ended June 30, 2016

Community Instructional

Center Project

Phase 3

REVENUE

State sources -$

EXPENDITURES

Current year's grant

Salaries -

Employee benefits -

Contractual services -

Materials and supplies

-

Conference and meeting expense -

Fixed charges -

Utilities -

Capital outlay 162,834

Student grants -

Total expenditures 162,834

Excess of revenue over expenditures (162,834)

OTHER FINANCING SOURCES (USES) -

EXCESS OF REVENUE AND OTHER FINANCING SOURCES OVER

EXPENDITURES AND OTHER FINANCING USES (162,834)

FUND BALANCE, July 1, 2015 162,834

FUND BALANCE, June 30, 2016 -$

ORIGINAL ALLOCATION -$

See Notes to ICCB Grant Programs Financial Statements.

109

Table of Contents

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513

ILLINOIS COMMUNITY COLLEGE BOARD STATE GRANTS

NOTES TO ICCB GRANT PROGRAMS FINANCIAL STATEMENTS

Year Ended June 30, 2016

NOTE

1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Gener

al

The accompanying statements include only those transactions resulting from the Career and Technical

Education-Program Improvement, and Adult Education & Family Literacy grants programs. These transactions

have been accounted for in a Restricted Purposes Fund.

Basis o

f Accounting

The statements have been prepared on the modified accrual basis. Expenditures include all accounts payable

representing liabilities for goods and services actually received as of June 30, 2016. Funds obligated prior to June

30 for goods that are received prior to August 31 are recorded as encumbrances. Unexpended funds are

reflected as a reduction to fund balance and a liability due to the ICCB by October 15.

Fixed A

ssets

Fixed asset purchases are recorded as capital outlay and not capitalized.

Unres

tricted Grants

Base Operating Grants

Gene

ral operating funds provided to colleges based upon credit enrollment.

Equalization Grants

Grants p

rovided to colleges with less than the statewide average local tax dollars available per full-time

equivalent student.

Rest

ricted Grants/Special Initiatives

Career and Technical Education-Program Improvement Grants

Grant fun

ding assists in keeping career and technical programs current and reflective of the highest quality

practices in the workplace as necessary to prepare students to be successful in their chosen careers and to

provide employers with the well-trained workforce they require. The grant funds are dedicated to enhancing

instruction and academic support activities to strengthen and improve career and technical programs and

services.

110

Table of Contents

ILLINOIS VALLEY COMMUNITY COLLEGE

DISTRICT NO. 513

ILLINOIS COMMUNITY COLLEGE BOARD STATE GRANTS

NOTES TO ICCB GRANT PROGRAMS FINANCIAL STATEMENTS

Year Ended June 30, 2016

Student Life Center

Thi

s grant provided funds for the renovation of 5,670 sq. ft. to Student Life Center.

Other Grants

The

se other grants are additional contractual grants provided for special or specific system-related initiatives.

These grants are supported by signed contracts between the College and the State of Illinois.

Restricted Adult Education Grants - State

State Basic

A gran

t awarded to Adult Education and Family Literacy providers to establish special classes for the instruction

of persons age 21 and over or persons under the age of 21 and not otherwise in attendance in public school.

Instruction focuses on providing students with knowledge needed to increase their qualifications for

employment and their ability to meet their responsibilities as citizens. Instruction may include courses regularly

accepted for graduation from elementary or high schools and for Americanization and General Education

Development Review classes. Included in this grant are funds for support services, such as student transportation

and child care facilities or provision.

Performance

Grant aw

arded to Adult Education and Family Literacy providers based on performance outcomes.

NOT

E 2 - PAYMENTS OF PRIOR YEAR’S ENCUMBRANCES

Paym

ents of prior year’s encumbrances for goods paid prior to August 31 are reflected as expenditures during

the current fiscal year.

111

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112

INDEPENDENT ACCOUNTANT’S REPORT ON ENROLLMENT DATA

AND OTHER BASES UPON WHICH CLAIMS ARE FILED

Board of Trustees

Illinois Valley Community College

Illinois Community College District #513

Oglesby, Illinois

We have examined the accompanying Schedule of Enrollment Data and Other Bases Upon Which

Claims Are Filed of Illinois Valley Community College, Illinois Community College District #513 (the

College) for the year ended June 30, 2016. The Schedule of Enrollment Data and Other Bases Upon

Which Claims Are Filed is the responsibility of the College’s management. Our responsibility is to express

an opinion on the schedule based on our examination.

Our examination was conducted in accordance with attestation standards established by the American

Institute of Certified Public Accountants and the guidelines of the Illinois Community College Board’s

Fiscal Management Manual, and accordingly, including examining, on a test basis, evidence about the

College’s compliance with those requirements and performing such other procedures as we considered

necessary in the circumstances. We believe that our examination provides a reasonable basis for our

opinion. Our examination does not provide a legal determination on the College’s compliance with

statutory requirements.

In our opinion, the Schedule of Enrollment Data and Other Bases Upon Which Claims Are Filed presents

fairly, in all material respects, the student enrollment and other bases upon which claims are filed and the

reconciliation of semester credit hours of Illinois Valley Community College, Illinois Community College

District #513 (the College) for the year ended June 30, 2016, in conformity with the Illinois Community

College Board's Fiscal Management Manual.

Sterling, Illinois

October 11, 2016

ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT NO. 513

SCHEDULE OF ENROLLMENT DATA AND OTHER BASES UPON WHICH CLAIMS ARE FILED

Year Ended June 30, 2016

Total Semester Credit Hours by Term (In-District and Out of District Reimbursable)

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