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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
$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
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$
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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
$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
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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$
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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.
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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.
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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.
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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%
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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
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
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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
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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
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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
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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)
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.
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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
$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
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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.
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
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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.
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.
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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%
0%
Proportion Amount of the Collective Net
Pension Liability
0%
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
$0
$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.
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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.
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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
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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
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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 $14,000,000
Instruction
Academic support
Student services
Public service
Auxiliary enterprises
Operation and maintenance of plant
Institutional support
Scholarships, grants & waivers
Depreciation
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
47
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ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513
SCHEDULE OF EXPENSES BY USE
Fiscal Years 2007 to 2016
For the Year Ended June 30
(amounts expressed in dollars)
2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
Salaries 14,932,550$ 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 $18,000,000
Salaries
Benefits
Contractual services
Materials and supplies
Conference and travel
Fixed costs
Utilities
Depreciation
Scholarships
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
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ILLINOIS VALLEY COMMUNITY COLLEGE DISTRICT No. 513
SCHEDULE OF REVENUES BY SOURCE
Fiscal Years 2007 to 2016
For the Year Ended June 30
(amounts expressed in dollars)
2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
Student tuition and fees
(net of scholarship allowances) 5,704,378$ 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
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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
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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$
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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
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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
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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
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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
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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<