COMPREHENSIVE ANNUAL FINANCIAL REPORTprairiestate.edu/Assets/Global/bus/audits/2014CAFRinfrpt.pdf · COMPREHENSIVE ANNUAL FINANCIAL REPORT June 30 ... Notes to Financial ... Assessed

Illinois Community College District No. 515

Chicago Heights, Illinois

COMPREHENSIVE ANNUAL

FINANCIAL REPORT

Fiscal Year EndedJune 30, 2014

Illinois Community CollegeDistrict No. 515

Chicago Heights, Illinois

Comprehensive Annual Financial Report Fiscal Year Ended

June 30, 2014

Issued by:

Finance and Administration

Thomas D. Saban, Ph.D., CPAVice President, Finance and Administration

Marina Kibardina, CPAController/Director, Business Services

PRAIRIE STATE COLLEGE – COMMUNITY COLLEGE DISTRICT NO. 515 Chicago Heights, Illinois

COMPREHENSIVE ANNUAL FINANCIAL REPORT June 30, 2014

TABLE OF CONTENTS

INTRODUCTORY SECTION .. Page Transmittal Letter ...................................................................................................................... i Principal Officials ...................................................................................................................... viii Organizational Chart ................................................................................................................. ix Certificate of Achievement for Excellence in Financial Reporting (GFOA)……………………. x FINANCIAL SECTION Independent Auditor’s Report ................................................................................................... 1 Management’s Discussion and Analysis .................................................................................. 4 Basic Financial Statements Statement of Net Position .................................................................................................. 12 Statement of Revenues, Expenses and Changes in Net Position ..................................... 13 Statement of Cash Flows ................................................................................................... 14 Notes to Financial Statements ........................................................................................... 15 STATISTICAL SECTION (UNAUDITED) Net Position by Component Last Ten Fiscal Years .................................................................. 32 Statement of Revenues, Expenses and Changes in Net Position Last Ten Fiscal Years ....... 33 Assessed and Estimated Actual Value of Taxable Property Last Ten Tax Years ................... 34 Property Tax Rates - Direct and Overlapping Governments Last Ten Tax Years ................... 35 Principal Property Taxpayers Current Levy Year and Nine Years Ago .................................... 38 Property Tax Levies and Collections Last Ten Calendar Years ............................................... 39 Enrollment, Tuition and Fee Rates, Credit Hours, and Tuition and Fee Revenues Generated Last Ten Fiscal Years .................................................................. 40 Ratio of Net General Bonded Debt to Assessed Value and Net General Bonded Debt per Capita Last Ten Fiscal Years ................................................ 41 Direct and Overlapping General Obligations Bonded Debt ...................................................... 42 Legal Debt Margin Information Last Ten Fiscal Years ............................................................. 44 Demographic and Economic Information - Personal Income Per Capita Last Ten Fiscal Years ............................................................................................................. 45 Full Time Equivalent Employees Last Ten Fiscal Years .......................................................... 46 Principal Employers Current Year and Ten Years Ago ............................................................ 47 Capital Asset Statistics Last Ten Fiscal Years ......................................................................... 48 SPECIAL REPORTS SECTION Uniform Financial Statements Schedules 1 – 5 ................................................ ...................... 49 Certification of Chargeback Reimbursement Schedule 6 ................................. ...................... 54 Independent Accountant’s Report on the Schedule of Enrollment Data and Other Bases upon Which Claims are Filed ........................................................ 55 Enrollment Schedules Schedule of Enrollment Data and Other Bases upon Which Claims are Filed .................. 56

SPECIAL REPORTS SECTION (Continued) Residency Requirements ................................................................................................... 58 Summary of Assessed Valuations………... ….. ................................................................. 59 Independent Auditor’s Report on Career and Technical Education – Program Improvement Grant and State Adult Education and Family Literacy Grant ....................... 60 Illinois Community College Board State Grant Financial Compliance Section Career and Technical Education - Program Improvement Grant Balance Sheet ............................................................................................................. 62 Statement of Revenues, Expenditures and Changes in Fund Balance ...................... 63 State Adult Education and Family Literacy Grant Balance Sheet ............................................................................................................. 64 Statement of Revenues, Expenditures and Changes in Fund Balances .................... 65 ICCB Compliance Statement for State Adult Education and Family Literacy Grant ... 66 Notes to ICCB State Grants Financial Statements...................................................... 67 Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Grant Program Financial Statements Performed in Accordance with Government Auditing Standards ............................................................................................ 68

202 South Halsted Street Chicago Heights, IL 60411-8226 (708) 709-3500 – FAX (708) 755-2587 prairiestate.edu

October 15, 2014 To the Citizens of Prairie State College District No. 515: The comprehensive annual financial report of Prairie State College, Community College District No. 515 (District), Counties of Cook and Will, State of Illinois, for the fiscal year ended June 30, 2014, is hereby submitted. Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the District. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of the various funds and account groups of the District. All disclosures necessary to enable the reader to gain an understanding of the District's financial activities in relation to its mission have been included. This letter of transmittal should be read in conjunction with the Management Discussion and Analysis which focuses on current activities, accounting changes and currently known facts. The District maintains its accounts and prepares its financial statements in accordance with generally accepted accounting principles (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). These bodies require accounting by funds, in order that limitation and restriction on resources can be easily accounted for. The financial records of the District 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 and explain the financial statements and the accounting principles applied. All District funds are presented in this report and have been audited by the independent public accountants Crowe Horwath LLP. Their report is included as part of the financial presentation. Created in 1958, the District is a body politic and corporate, subject to the authority of the Illinois Community College Board under the Illinois Board of Higher Education. The District is governed by a Board of Trustees, which is elected by the public and has the exclusive responsibility and accountability for the decisions it makes. The District has the statutory authority to adopt its own budget, to levy taxes, and to 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, or lease property in its own name. Based on these criteria, the District is considered a primary government. There are no other organizations or agencies which would be considered component units and whose financial statements should be combined and presented with these financial statements. The District's mission is determined by the Illinois Public Community College Act, which established the statewide community college system. Simply stated, that mission is to serve the post-secondary educational needs of the residents of District No. 515.

i.

COLLEGE PROFILE Prairie State College (PSC) is a two-year community college offering associate degrees, technical and career certificates, and adult, corporate, and continuing education. Our 137-acre campus is located at South Halsted Street and Vollmer Road in Chicago Heights, Illinois. We serve over 11,000 students annually through our credit and non-credit courses. Prairie State College was the first Illinois community college to guarantee all credits will transfer to other Illinois colleges and universities, an assurance that has grown through the Illinois Articulation Initiative. PSC offers associate degrees that prepare students for transfer to four-year institutions, associate degrees and certificates that prepare students for specific careers, and an associate degree that recognize the completion of a broad range of college-level courses. Degrees and certificates in more than 100 fields of study, including nursing and dental hygiene, are offered. COLLEGE HISTORY AND FACILITIES Founded in 1957 as Bloom Township Junior College, Prairie State College’s first classes were held in 1958 in a church basement. Construction of permanent facilities began in the fall of 1972 and was completed for the 1975-76 academic year. PSC has grown in many ways over the past 57 years –in size, in facilities, in breadth and depth of educational options, and in reputation. A vocational-technical addition to the Main Campus Building was dedicated in August 1979. A new Library, the Christopher Art Gallery and Conference Center opened in 1996. In the 1998, the Matteson Area Center opened as a convenient off-campus location to accommodate district residents. The south campus is also home to a Children’s Learning Center and our Adult Training and Outreach Center, where the College's English as a Second Language, Adult Basic Education, and GED classes are offered. The college’s facilities located north of Vollmer Road include the Health/Tech Center and the Fitness Complex, a unique partnership among Prairie State College, the Chicago Heights Park District, and St. James Hospital and Health Centers. Prairie State College, Illinois Community College District 515, consists of the following communities: Beecher, Chicago Heights, Crete, Flossmoor, Ford Heights, Glenwood, Homewood, Matteson, Monee, Olympia Fields, Park Forest, Richton Park, Sauk Village, South Chicago Heights, Steger, University Park, portions of Country Club Hills, Hazel Crest, Lynwood, Tinley Park and adjacent unincorporated areas of Cook and Will counties. The high schools that feed into Prairie State College include: Beecher, Bloom, Bloom Trail, Crete-Monee, Homewood-Flossmoor, Rich Central, Rich East, Rich South, and Marian Catholic. STRATEGIC PLANNING A comprehensive planning process was under taken in Spring of 2013 to develop PSC’s new strategic plan. Representatives of all constituencies– executive officers, administrators, managers, faculty, and support staff – comprised our Strategic Planning Team. Information and data were collected with broad input from internal and external stakeholders. The Team engaged in four off-campus workshops, discussing the college’s priorities and what actions we need to take to reach our goals.

ii.

. .

Student success emerged as the central theme of Prairie State’s 2013-17 Strategic Plan. Student persistence and completion are significantly addressed, as well as funding and partnerships. The Strategic Plan was launched in August of 2013, and has the following three main goals:

1. Provide access to quality education and support services to help students achieve their education and career goals.

2. Secure new funding sources while effectively managing and allocating current fiscal, physical

and human resources to align with strategic goals.

3. Cultivate new and expand existing partnerships. COLLEGE MISSION, VISION AND VALUES Following the development of the Prairie State’s new Strategic Plan, the College revised our mission and values in keeping with what we believe are our central purpose and priorities. The College also developed a vision statement to give further shape to our future direction. MISSION STATEMENT Prairie State College fosters collaborative relationships that empower students to achieve their education and career goals. The College embraces its diversity, nurtures life-long learning, and supports community and economic development. Values: Learning Excellence Accessibility Respect Integrity VISION STATEMENT Prairie State College will offer rigorous academic programs, meet the needs of the local workforce, cultivate the values of sustainability, and demonstrate an awareness of its responsibilities in a global society. GOVERNMENT PROFILE Prairie State College is a publicly assisted, comprehensive community college of Illinois, governed by a local board of trustees and mandated to provide educational opportunities to meet the particular educational needs of its district residents by providing the following:

Baccalaureate Transfer Education: Programs and course work for the freshman and sophomore years of an undergraduate education for students who plan to continue studies toward the baccalaureate or pursue general studies in the liberal arts and sciences;

iii.

Post Secondary Technical, Occupational and Vocational Education: Programs and course work for students who plan to prepare for entry into employment or upgrade their career, professional skills and work performance;

Adult General and Basic Education: Courses and services for adults who desire to complete a high school equivalency examination or improve their adult basic education and literacy skills;

Community Educational Services: Courses and services of college credit and non-credit for district residents who desire to expand their learning experiences;

Developmental Education Studies: Courses and services for adults who are in need of further development of academic and basic skills preparation for acceptance into a curriculum and to succeed in college programs;

Special Training and Economic Development Education: Courses and services of a specific nature where employment opportunities are available and in cooperation with employers and economic development agencies; and

Community Development: Activities, services and special projects in response to cultural and educational needs and interests and for the expansion, enrichment and development of the communities served.

Internal Control. Management of the District is responsible for establishing and maintaining an internal control structure designed to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with U.S. 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. In addition, the auditors suggest recommendations for improvement of internal control. Investment in Plant. Investment in plant consists of those assets of a long-term character, such as land, buildings, parking lots, machinery and equipment. Note 3 to the financial statements summarizes the activity for the fiscal year and the status of capital assets as of June 30, 2014. A comparison of Investment in Plant at July 1, 2013 and June 30, 2014 is presented as well. The amounts represent actual and estimated original costs of the assets. The District recognizes depreciation of capital assets in the financial statements, in accordance with generally accepted accounting principles established by the Governmental Accounting Standards Board (GASB 35). Budgetary Controls. Budgetary controls established and maintained by the District to ensure compliance with the Illinois Statutes legal provisions embodied in the annual operating budget appropriated by the District's Board of Trustees. Activities are budgeted within the following funds:

Education Operations and Maintenance Operations and Maintenance - Restricted Fund (Capital Projects) Bond and Interest (Debt Service) Auxiliary Enterprise Restricted Purposes Audit Fund Liability, Protection and Settlement

iv.

In addition to the above mentioned, the District maintains two funds that are not included as part of its annual operating budget: Working Cash Agency and Trust (primarily student clubs) Budgetary control within each fund is maintained by program (activity) and object (salaries, benefits, supplies, etc.). The budgeting process begins with the establishment of strategic goals and objectives and is performed in collaboration with all levels of the District and the community. The Budget Office, with Board approval, makes transfers between various funds, programs, and objects that are necessary during the year. Board approval is required for all purchases in excess of $10,000 ( $7,500- for consulting or professional services). The District uses an encumbrance accounting system as an additional method of budgetary control. Encumbered amounts lapse at year end. Independent Audit. State statutes require an annual audit by independent certified public accountants. The District's Board of Trustees selected the accounting firm of Crowe Horwath LLP to conduct the FY 2014 audit. The auditors' report on the financial statements and schedules is unmodified and is included in the financial section of this report. FINANCIAL CONDITION Local Economy The District encompasses the far south suburban region of the Chicago metropolitan area. The District ranges economically from Ford Heights, which has a per capita income of around $10,436, to Flossmoor which has a per capita income of $53,616. According to the U. S. Census Bureau, the median family income for Cook County was $54,648, while that of Chicago Heights was $46,463. The communities in the District occupy the center, both geographically and economically, of the sixty-nine economically interlinked communities that make up the Chicago Southland Chamber of Commerce’s territory. As of June, 2014, the unemployment rate in Cook County stood at 7.1% for ages 16 and over. Financial Management The District’s operating funds, the Education Fund and the Operations and Maintenance Fund, ended FY 2013 with positive balance. The balances of the Education Fund and the Operations and Maintenance Fund at the close of FY 2013 were $2,926,793 and $821,616, respectively, for a combined surplus of $3,748,409. At the close of FY 2014, the Education Fund balance had improved by $1,665,913 ending at $4,592,706, while the Operations and Maintenance Fund’s position improved by $1,057,438 to end at $1,879,054. The improvement in the Education Fund is due primarily to increased tuition and fees. The Working Cash Fund reserve contains a $6.2 million fund balance that can be used to carry the District through low points in seasonal cash flow.

v.

Over the last 10 years, as the District’s equalized assessed property valuation (EAV) increased an average of 1.64% annually, its tax extension only increased 3.61% per year on average because of the Property Tax Extension Limitation Law (PTELL). This law limits the annual increase in the tax levy to the change in CPI or 5%, whichever is less. The State of Illinois has responded to increasing fiscal pressure on its budget by reducing or eliminating grants that were used to fund specific activities in the past or by delaying payment of other obligations, including quarterly payments to community colleges. In recent years, the District has increased tuition rates to offset the decrease in State funding. From FY 2006 to FY 2014, tuition and fees increased from $76 per credit hour to $124. The District’s budget relies heavily on tuition revenue. The fall enrollment for FY 2014, shown in the table below, is 494 students lower than in the Fall Semester for 2013 and the actual credit hours reported decreased by 4,470. This decrease over the previous year is believed to be driven by the improvement in the economy. The following table provides a view of the District’s fall credit enrollment, as measured on the tenth day of classes, for each of the past ten years. It is too soon to project how much of the current year’s decrease will carry over to the spring term.

ENROLLMENT

Fall Semester

10th Day Headcount

Apportionment Credit Hours

2005 5,083 42,138

2006 5,294 43,670

2007 5,507 45,399

2008 5,368 45,016

2009 5,854 52,164

2010 5,791 53,352

2011 5,697 53,802

2012 5,416 48,729

2013 5,064 46,631

2014 4,570 42,161

Significant Financial Policies There were no District financial policies that had a significant impact on the current period’s financial statements.

vi.

PRAIRIE STATE COLLEGE – COMMUNITY COLLEGE DISTRICT NO. 515

Principal Officials Year Ended June 30, 2014

Board of Trustees

Name Position Term Expires Jacqueline Agee Chair 2019 Marc Wiley Vice Chair 2017 Cynthia Somer Secretary 2015 Brunetta Hill-Corley Trustee 2017 Peg Donohue Trustee 2019 Kathleen Doyle Trustee 2015 Wendell Mosby Trustee 2017 Daron Johnson Student Trustee 2015

Officers of the District

Name Title Terri L. Winfree President Marie Hansel Vice President of Academic Affairs Thomas Saban Vice President of Finance and Administration Gregory Thomas Vice President of Student Affairs & Dean of Students Craig Schmidt Vice President of Community & Economic Development OFFICIALS ISSUING REPORT: Thomas Saban, Vice President of Finance and Administration Marina Kibardina, Controller/Director of Business Services DIVISION ISSUING REPORT: Finance and Administration

viii.

FY2014 Organizational Structure Board of TrusteesPresident’s Cabinet Administrative Staff

President

PSC Foundation Executive DirectorHuman Resources

Executive Director

Vice President

Chief of Police/Director, Police and

Campus Safety

Controller/DirectorBusiness Services

Executive DirectorInfo. Technology

Resources

Executive DirectorFacilities and

Operatons

ManagerCollege Bookstore

(Contractual)

ManagerFood Services(Contractual)

College Custodial Services

(Contractual)

Vice President

Dean Adult Education

Dean, Corporate and Continuing

Prof. Education

Vice President

Acting DeanStudent Dev. and

Campus Life

Executive DirectorEnrollment and

Financial Aid Services

DirectorAdvising and

Disability Services

Director Financial Aid

Interim DirectorPhysical Education

and Athletics

Interim DirectorChildren’s Learning

Center

Vice President

DeanLiberal Arts

Dean, Business, Mathematics, and

Science

Interim DeanHealth and Industrial

Technology

Associate DeanLibrary /Instructional

Technology

Executive DirectorCommunications and Marketing

Director, Institutional Support Services

Academic Affairs Finance and Administration Community and Economic Development Student Affairs

Assistant Controller

Rev. 3/2014

DirectorTesting Services/

Intentional Advisor

Assistant DirectorHuman Resources

Director Institutional

Research/Planning

Director, Development and Special Projects

HansonPollHA

Typewritten Text

ix.

x.

Crowe Horwath LLP Independent Member Crowe Horwath International

1.

INDEPENDENT AUDITOR’S REPORT

The Board of Trustees Prairie State College Community College District No. 515 Chicago Heights, Illinois Report on the Financial Statements We have audited the accompanying financial statements of Prairie State College, Community College District No. 515 (the College), as of and for the year ended June 30, 2014, 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 an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

2.

Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the College, as of June 30, 2014, and the changes in its financial position and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.

Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis on page 4 – 11 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Government Accounting Standards Board (GASB) 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. Supplementary Information Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the College’s basic financial statements. The introductory section, statistical section, and special reports section information included in schedules 1 through 6 (special reports section) are presented for purposes of additional analysis and are not a required part of the basic financial statements. The special reports section is required by the Illinois Community College Board and is presented on the modified accrual basis of accounting. The special reports section is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the special reports section is fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory section and statistical section in the table of contents have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them.

3.

Report on Other Legal and Regulatory Requirements In accordance with Government Auditing Standards, we have also issued our report dated October 15, 2014 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 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. Crowe Horwath LLP Oak Brook, Illinois October 15, 2014

Management’s Discussion and Analysis This section of Prairie State College – Community College District 515’s (District) Comprehensive Annual Financial Report presents management’s discussion and analysis of the District’s financial activity during the fiscal year ending June 30, 2014. Since this management discussion and analysis is designed to focus on current activities, resulting change and currently known facts, it should be read in conjunction with the transmittal letter and the District’s basic financial statements and footnotes. Responsibility for the completeness and fairness of this information rests with the District. Overview of the Financial Statements This annual report consists of two parts: management discussion and analysis (this section) and the basic financial statements. The basic financial statements include notes that explain some of the information in the statements and provide more detailed data and statistical information relevant to the activity of the District. The figure below shows how the various parts of the annual report are arranged and their relationship to one another.

Management Discussion & Analysis

Basic Financial Statements

Notes to the Financial Statements Statistical Information

The table below summarizes the major features of the District’s financial statements, including the portion of the District’s activities they cover and the types of information they contain.

Major Features of the District Financial Statements

Scope Entire District (except fiduciary funds)

Required financial statements • Statement of Net Position • Statement of Revenues, Expenses, and Changes in Net

Position • Statement of Cash Flows • Notes to Financial Statements

Accounting basis and measurement focus

Accrual accounting and economic resources focus

Type of asset/liability information All assets and liabilities, both financial and capital, short-term and long-term.

Type of inflow/outflow information All revenues and expenses during the year, regardless of when cash is received or paid.

4.

The District-wide statements report information about the District as a whole using accounting methods similar to those used by private-sector companies. The Statement of Net Position includes all of the District’s assets, liabilities, deferred inflows and deferred outflows. The Statement of Revenues, Expenses, and Changes in Net Position describes operating and non-operating results. This approach is intended to summarize and simplify the user’s analysis of financial results and cost of various District services rendered to the students and the public. Financial Highlights The financial highlights of the District include:

1) A stable financial condition despite difficult economic conditions throughout the State. Total revenue increased $0.8 million to $45.8 million for fiscal year 2014.

2) The District’s property Equalized Assessment Value (EAV) decreased by $249 million, or 7.48%, from $3.33 billion for the 2012 levy to $3.08 billion for the 2013 levy. However property tax revenue increased by $489,054 or, 3.6%, from $13.7 million in 2013 to $14.2 million in 2014 because of the higher property tax allocation. Property taxes represent 24.7% of the total revenue.

3) State grant revenue increased $874,129, or 20.5%; federal grants decreased $1,489,898, or 11.3%; and intergovernmental payments increased $356,179, or 5.4%.

4) Gross tuition and fee revenue for 2014 was $16.1 million, up 2.6% over 2013. 2014 net tuition and fee revenue was up by $536,406 or 9.8%, compared to 2013. The increase in net revenue was due to an increase in tuition fees.

2014 2013

Gross Tuition & Fees $16,103,363 $15,689,599 Scholarship Allowances (9,402,357) (9,488,637) Bad Debt Expense (686,753) (723,115)

Net Tuition & Fees $ 6,014,253 $ 5,477,847

5) Investment income increased by 204.3% from ($65,761) in FY 2013 to $68,594 in FY 2014 partially as a result of management changes in investment holdings, which are aligned with Board of Trustees investment policies and followed the Illinois Public Investment Act.

6) Total expenses for the District increased by only $29,015, or 0.1%, in 2014. The trivial increase is due to the District’s strict budget compliance. The academic program-related expenses’ share increased in FY14 as compared to FY13. These expenses that are comprised of Instruction, Student Services, Academic Support, and Public Service were $19.1 million and accounted for 43.9% of the District’s total expenses in 2014, compared to $18.9 million or 43.5% in 2013. The increase in instructional program costs, student and academic support services is driven by normal increases in salary and benefits.

5.

Change

2014 2013 Dollars Percent Instruction $12,320,668 $12,070,054 $ 250,614 2.1% Student Services 4,251,083 4,120,518 130,565 3.2 Academic Support 1,415,145 1,396,659 18,486 1.3 Public Services 1,103,474 1,317,380 (213,906) (16.2) Total $19,090,370 $18,904,611 $ 185,759

7) The Auxiliary expenses decreased in 2014 by $39,342, or 1.7%, from $2,319,603 in FY2013 to $2,280,261 in FY2014.

8) Operation and Maintenance expenditures for the District’s facilities increased by

$25,418, or 0.7% from $3,771,227 in FY 2013 to $3,796,645 in FY 2014.

9) Total assets increased by 1.9% from $59.8 million to $60.9 million; with the current assets increase by 5.8% from $23.7 million to $25.1 million. This is mainly attributable to changes (increase) in federal grants and programs, corporate grants, and property taxes receivables. Total liabilities and deferred inflows decreased by 5.8% from $26.9 million to $25.3 million. The decrease is attributable to various installment bond retirements in FY2014. Total net position increased by $2,669,400 or 8.1% to $35.6 million at year end, from $32.9 million at the end of last year. Capital assets increased in FY2014 by $1,048,882, or 1.8% as compared to FY2013. The increase was caused primarily by additions in construction in progress for construction projects funded by Capital Development Board (CDB). However, with the 5.0% (or $1,416,122) increase in accumulated depreciation due to the current provision for depreciation expense, the capital assets net of depreciation decreased by $367,130 or 1.2% for the same time frame.

Following are two pie charts reflecting the revenue and expenses as shown on the Statement of Revenue and Expenses for the College. One adjustment to these numbers was that the tuition is reported as gross tuition, excluding bad debt and scholarship and waivers, which reduce tuition and fees.

6.

Tuition & Fees 27.1%

Other Revenue 20.0%

Property Taxes 24.7%

ICCB Grants 5.3%

State & Other Grants 3.0%

Federal Grants 19.7%

Local Grants & Contracts

0.1%

Interest Income 0.1%

FY 2014 Revenues by Source

7.

Instruction 22.8%

Academic support 2.6%

Student services 7.9%

Public services 2.0%

Operations and Maintenance

7.0%

Scholarships & Student Grants

20.7%

Institutional Support 27.7%

Auxiliary Expenses

4.2%

Depreciation 2.8%

Interest 1.0%

Bad Debt Expense

1.3%

FY 2014 Sources of Expenses

8.

Financial Analysis of the District as a Whole

Increase2014 2013 % Change (Decrease)

RevenueOperating revenuesTuition and fees (net of scholarship allowances) 6,014,253$ 5,477,847$ 9.8% 536,406$ Auxiliary enterprise revenue 859,588 819,707 4.9% 39,881

6,873,841 6,297,554 9.2% 576,287

Non-operating revenue and (expense)Property taxes 14,197,138 13,708,084 3.6% 489,054 Corporate Personal Property Taxes 479,996 474,490 1.2% 5,506 State grants 5,145,558 4,271,429 20.5% 874,129 Federal grants 11,689,834 13,179,732 -11.3% (1,489,898) Local grants and contracts 44,220 138,731 -68.1% (94,511) Investment income 68,594 (65,761) 204.3% 134,355 Intergovernmental 6,906,892 6,550,713 5.4% 356,179 Interest expense (523,731) (557,617) -6.1% 33,886 Other non-operating revenue 428,646 387,664 10.6% 40,982

38,437,147 38,087,465 0.9% 349,682

Total revenues 45,310,988 44,385,019 2.1% 925,969

ExpensesInstruction 12,320,668 12,070,054 2.1% 250,614 Academic support 1,415,145 1,396,659 1.3% 18,486 Student services 4,251,083 4,120,518 3.2% 130,565 Public services 1,103,474 1,317,380 -16.2% (213,906) Operations and maintenance 3,796,645 3,771,227 0.7% 25,418 Scholarship, Student Grants & Waiver 1,814,889 2,301,557 -21.1% (486,668) Auxiliary expenses 2,280,261 2,319,603 -1.7% (39,342) Institutional support 14,971,947 14,763,078 1.4% 208,869 Depreciation 1,495,028 1,360,049 9.9% 134,979

Total expenses 43,449,140 43,420,125 0.1% 29,015

Increase (decrease) in net position before capital contributions 1,861,848 964,894 93.0% 896,954

Capital contributions 807,552 346,864 132.8% 460,688

Increase (decrease) in net position 2,669,400 1,311,758 103.5% 1,357,642

Net position - beginning of year 32,917,667 31,605,909 4.2% 1,311,758

Net position - end of year 35,587,067$ 32,917,667$ 8.1% 2,669,400$

Changes in Net Position from Operating Results

9.

Capital Asset and Debt Administration Capital Assets: By the end of 2014, the District had $30.2 million invested in a broad range of capital assets. (More detailed information about the District’s capital assets and capital leases are presented in Notes 3 and 4 to the financial statements.)

2014 2013 % Change

Current assets 25,102,069$ 23,716,980$ 5.8%Non-current assets Capital assets, net of depreciation 30,154,023 30,521,153 -1.2% Other & long-term investments 5,659,246 5,566,640 1.7%Total assets 60,915,338 59,804,773 1.9%

Current liabilities 8,160,706 8,264,258 -1.3%Long-term obligations 10,179,174 11,435,265 -11.0%Deferred inflows of resources 6,988,391 7,187,583 -2.8%Total liabilities and deferred inflows 25,328,271 26,887,106 -5.8%

Net position: Net investment in capital assets 20,419,228 20,611,025 -0.9% Restricted for Capital projects 3,394,471 3,544,673 -4.2% Debt service 518,908 579,106 -10.4% Other 6,669,189 6,677,670 -0.1% Unrestricted 4,585,271 1,505,193 204.6%

Total net position 35,587,067$ 32,917,667$ 8.1%

Condensed Statement of Net Position

2014 2013Land and land improvements 4,665,783$ 4,665,783$ Buildings and infrastructure 43,222,868 43,222,868 Furniture and equipment 10,011,568 9,874,027 Construction in progress 1,313,161 474,964 Capital leases 438,800 365,546

59,652,180 58,603,188

Less: Accumulated depreciation (29,498,157) (28,082,035)

Total 30,154,023$ 30,521,153$

Capital Assets

10.

Long Term Debt: At year end, the District had $11.9 million in general obligation bonds and other long-term debt outstanding. This represents a decrease in long-term debt of $1,204,208, or 9.2%. (More detailed information about the District’s long-term liabilities is presented in Notes 5 and 6 to the financial statements).

Contacting the District’s Financial Management This financial report is designed to provide the District’s citizens, taxpayers, clients, investors and creditors with a general overview of the District’s finances and to demonstrate the District’s accountability for the property taxes, grants, tuition and fees it receives. If you have questions about this report or need additional financial information, contact the Vice President, Finance and Administration, Prairie State District, 202 S. Halsted Street, Chicago Heights, Illinois 60411.

2014 2013

General obligation bonds & notes 10,893,334$ 11,957,727$ Other fixed liabilities 754,774 900,235 Capital lease payable 248,645 242,999

11,896,753$ 13,100,961$

Outstanding Long-Term Debt

11.

2014Assets

Current AssetsCash and cash equivalents 3,562,964$ Restricted cash and cash equivalents 2,717,465Receivables:

Property taxes 13,437,069 Government claims and grants 2,306,932 Corporate grants 654,059 Student tuition and fees 3,931,813 Other 2,409 Allowance for doubtful accounts (1,815,958)

Total receivables 18,516,324 Prepaid assets 305,316

Total current assets 25,102,069 Non-current assets

Long term investments 3,659,246 Capital assets, not being depreciated 2,234,567 Capital assets, net of accumulated depreciation 27,919,456 Investment in joint venture 2,000,000

Total non-current assets 35,813,269 Total assets 60,915,338

LiabilitiesCurrent liabilities

Accounts payable 843,647 Accrued salaries and related costs 1,249,606 Deposits held in custody for others 139,036 Interest payable 26,140 Unearned student tuition and fees 4,184,698 Current portion of:

Early retirement benefits payable 132,370 Compensated absences payable 244,969 Bonds payable 1,260,000 Capital lease payable 80,240

Total current liabilities 8,160,706 Non-current liabilities

Non-current portion of:Early retirement benefits payable 214,122 Compensated absences payable 163,313 Bonds payable 9,633,334 Capital lease payable 168,405

Total non-current liabilities 10,179,174 Total liabilities 18,339,880

Deferred inflows of resources - unearned property taxes 6,988,391

Net positionNet investment in capital assets 20,419,228 Restricted for:

Capital projects 3,394,471 Debt service 518,908 Working cash 6,221,748 Liability, protection, and settlement 447,441

Unrestricted 4,585,271 Total net position 35,587,067$

Prairie State College - Community College District No. 515Statement of Net Position

June 30, 2014

_________________________________________________________________________________________________

See accompanying notes to financial statements. 12.

2014Revenues

Operating revenuesStudent tuition and fees, tuition chargebacks, net of scholarship allowances of

$9,402,357 and bad debt expense of $686,753 6,014,253$ Auxiliary enterprise revenue 859,588

Total operating revenues 6,873,841

ExpensesOperating expenses

Instruction 12,320,668 Academic support 1,415,145 Student services 4,251,083 Public services 1,103,474 Operation and maintenance of plant and capital outlay 3,796,645 Scholarship, Student Grant and Waivers 1,814,889 Institutional support 14,971,947 Auxiliary enterprise 2,280,261 Depreciation 1,495,028

Total operating expenses 43,449,140

Operating income (loss) (36,575,299)

Non-operating revenues (expenses)Property taxes 14,197,138 Corporate personal property replacement taxes 479,996 State grants 5,145,558 Federal grants 11,689,834 Local grants and contracts 44,220 Intergovernmental 6,906,892 Investment income 68,594 Interest expense (523,731) Other non-operating revenues 428,646

Total non-operating revenues (expenses) 38,437,147

Income (loss) before Capital Contributions 1,861,848

Transfers from Capital Development Board 807,552

Change in net position 2,669,400

Net position - beginning of year 32,917,667

Net position - end of year 35,587,067$

Prairie State College - Community College District No. 515Statement of Revenues, Expenses and Changes in Net Position

Year ended June 30, 2014

____________________________________________________________________________________________

See accompanying notes to financial statements. 13.

Cash flows from operating activities:Tuition and fees 6,322,392$ Payments to employees (24,871,067) Payments to suppliers (8,242,737) Payments for scholarships and fellowships (1,814,889) Auxiliary enterprise charges 859,588

Net cash used in operating activities (27,746,713)

Cash flows from non-capital financing activities:Property taxes 13,061,916 Corporate personal property replacement taxes 490,079 Federal grants 10,952,927 State grants 5,209,919 Local grants, contracts, and other 225,940

Net cash provided by non-capital financing activities 29,940,781

Cash flows from capital and related financing activities:Purchases of capital assets (247,093) Principal paid on bonds, contracts, and leases (1,267,608) Interest paid on bonds, contracts and leases (392,682)

Net cash used in capital and related financing activities (1,907,383)

Cash flows from investing activitiesProceeds from maturities of investments 1,462,722 Purchase of investments (1,577,773) Interest received 90,949

Net cash provided by investing activities (24,102)

Net increase in cash and cash equivalents 262,583

Cash and cash equivalents at beginning of year 6,017,846 Cash and cash equivalents at end of year 6,280,429$

Reconciliation of operating loss to net cash used in operating activities:Operating loss (36,575,299)$ Adjustments to reconcile operating loss to net cash used in operating activities:

Decrease in allowance for doubtful accounts 156,894 Depreciation 1,495,028 State payment in kind for retirement 6,906,892

Changes in assets and liabilities:Decrease in receivables 455,789 Decrease in prepaid expenses 110,230 Increase in accrued salaries 147,993 Increase in accounts payable 137,170 Decrease in unearned tuition and fees (304,544) Decrease in other liabilities (131,405) Decrease in early retirement benefits (133,436) Decrease in compensated absences (12,025)

Net cash used in operating activities (27,746,713)$

Noncash investing, capital and financing activities:State on-behalf payments for fringe benefits 6,906,892$ State payments of construction 807,552 Accretion on bond 135,648 Capital assets acquisition via leases payable 73,254

Prairie State College - Community College District No. 515Statement of Cash Flows


________________________________________________________________________________________

See accompanying notes to financial statements.14.

PRAIRIE STATE COLLEGE - COMMUNITY COLLEGE DISTRICT NO. 515 NOTES TO FINANCIAL STATEMENTS


____________________________________________________________________________

(Continued) 15.

NOTE 1 - REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Financial Reporting Entity: Prairie State College - Community College District No. 515 (District), established in 1957 under the Illinois Public Community College Act, is a two-year community college offering associate degrees, technical and career studies certificates, plus adult, corporate and continuing education. The District is subject to the authority of the Illinois Community College Board under the Illinois Board of Higher Education. The District 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 accompanying financial statements include only the accounts and transactions of the District. Under the criteria specified in Governmental Accounting Standards Board (GASB) Statement No. 14, The Financial Reporting Entity as amended by GASB Statement No. 61, The Financial Reporting Entity: Omnibus, as amended by Statement No. 39, Determining Whether Certain Organizations are Component Units, the District has no component units and it is not considered a component unit of any other governmental authority. The primary criterion for including a potential component unit within the reporting entity under GASB Statement No. 14 is the financial accountability that the elected officials of the primary government have for the component unit. The criteria used in assessing financial accountability consist of the following: (1) the primary government is financially accountable if it appoints a voting majority of the organization’s governing body, and (a) it is able to impose its will on that organization, or (b) there is a potential for the organization to provide specific financial benefits or impose specific financial burdens on the primary government; and (2) the primary government may be financially accountable if the organization is fiscally dependent. Based on these criteria, the District is not financially accountable for any other organizations. The Prairie State College Foundation (the Foundation) is a legally separate, tax-exempt organization that exists for the principal purpose of aiding and assisting the District in achieving its educational and service goals and responsibilities. The 27-member board of the Foundation is self-perpetuating and consists of graduates and friends of the District. Although the majority of resources or incomes thereon that the Foundation holds and invests are restricted to the activities of the District by the donors, they are not considered significant to the operations of the District. Accordingly, the Foundation is not reported as a component unit of the District. Measurement Focus, Basis of Accounting and Basis of Presentation: The District is a special- purpose government engaged only in business-type activities. Therefore, the District’s financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenue is recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. All significant intra-District transactions have been eliminated.



____________________________________________________________________________

(Continued) 16.

NOTE 1 - REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Non-exchange transactions, in which the District 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 timing requirements, which specify the year when the resources are required to be used or the fiscal year when use is first permitted; matching requirements, in which the District must provide local resources to be used for a specified purpose; and expenditure requirements, in which the resources are provided to the District on a reimbursement basis. The accounting policies of the District conform to accounting principles generally accepted in the United States of America (GAAP) as applicable to colleges and universities as well as those prescribed by the Illinois Community College Board (ICCB). The College has implemented the provisions of GASB Statement 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements to apply all applicable GASB pronouncements. When applicable, certain prior year amounts have been reclassified to conform to current year presentation. Such reclassifications were made for comparative purposes only, and do not restate the prior year change in position or total net position. The following is a summary of the significant policies: Cash and Cash Equivalents: For purposes of reporting cash flows, all highly liquid investments with a maturity of three months or less when purchased are considered to be cash equivalents. Investments: All investments are carried at fair value based on quoted market prices for the same or similar investments. Prepaid Items: Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items. Capital Assets: Capital assets include property, plant equipment and infrastructure, such as roads and sidewalks. Capital assets are defined by the District as assets with an initial cost of $5,000 or more and an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at their estimated fair value at the date of donation. Major outlays for capital assets and improvements are capitalized as projects are constructed. Capital assets are depreciated over their estimated useful lives (excluding salvage value). Estimated useful life is management’s estimate of how long the asset is expected to meet service demands. Straight-line depreciation is used based on the following estimated useful lives: Land improvements 20 years Buildings and infrastructure 50 years Furniture and equipment 3-20 years



____________________________________________________________________________

(Continued) 17.

NOTE 1 - REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Receivables: Receivables include (1) property taxes, (2) government claims and grants, (3) corporate grants, (4) student tuition and fees, (5) other, and (6) allowance for doubtful accounts. The property tax section below provides further information on the District’s determination of the property taxes receivable. Government claims, grants, and corporate grants receivables consist of amounts due from grantors and state and local agencies that the District was awarded for the current fiscal year but the funds were not collected at the year end. The student tuition and fees receivable consists of amounts due from students for credit hours charged but not received at year end. The District’s policy is to apply all inactive student receivables to the allowance for doubtful accounts when the account has aged past 365 days. Any inactive receivables other than student receivables with a date older than two years are applied to the allowance for doubtful accounts. Compensated Absences: The District’s policy regarding vacation time permits employees to accumulate earned, but unused vacation leave. All compensated absences which are earned during the year are reported as an expense and as a liability. The District has no commitment for accumulated sick leave and no liability is recorded. Employees who retire are given credit up to one year for unused sick leave towards years of service in the State University Retirement System pension plan. At June 30, 2014, the District has recorded a compensated absences liability of $408,282, and the District considers $244,969 of the liability as current. Unearned Tuition and Fee Revenue: Tuition and fee revenues collected during the fiscal year, which relate to the period after June 30, 2014, have been recognized as unearned revenues. Unearned revenues arise when resources are received by the College before it has a legal claim to them, as when grant monies are received prior to the incurrence of qualifying expenditures. In subsequent periods, when both revenue recognition criteria are met, or when the College has a legal claim to the resources, the liability for unearned revenue is removed from the balance sheet or statement of net position and revenue is recognized. In addition to liabilities, the balance sheet will sometimes report 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. The College has only one type of item which arises only under the accrual basis of accounting that qualifies for reporting in this category. Accordingly, the item, unearned tax revenue, is reported in the statement of net position. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. Non-current Liabilities: Non-current liabilities include (1) the principal amounts of general obligation bonds with contractual maturities greater than one year; (2) the principal amounts of capital lease obligations with contractual maturities greater than one year; and (3) estimated amounts for accrued compensated absences and other liabilities that will not be paid within the next fiscal year.



____________________________________________________________________________

(Continued) 18.

NOTE 1 - REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Property Taxes: Property taxes are levied each year on the basis of the equalized assessed property values in the District as of January 1 of that year. Assessed values are established by each of the respective counties. Property taxes are billed and collected by the counties included within the District’s boundaries. These taxes are assessed in December and become an enforceable lien on the property as of the preceding January 1. The Property Tax Extension Limitation Law (PTELL) limits the annual increase in the District’s property tax extension to 5% or the percentage change in the annual CPI from December to December, whichever is less. For the 2013 tax levy, the increase was limited to 1.7% plus an allowance for the addition of new property. The blended statutory maximum tax rates for Cook and Will counties and respective rates for the 2013 tax levy, per $100 of assessed valuation, are reflected in the following table:

Based on the Board of Trustees approved budget and revenue allocation, 50% of property taxes extended for the 2013 tax year, as well as 50% of property taxes extended for the 2012 tax year, and collected in fiscal year 2014 are recorded as revenue in fiscal year 2014. The remaining revenue related to the 2013 tax year extension has been deferred and will be recorded as revenue in the next fiscal year. Additionally, the District has recorded a reserve for property tax appeals of $1,042,136 as of June 30, 2014. Net Position: The District’s net position is classified as follows:

Net investment in capital assets: Consists of capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction or improvement of those assets.

Restricted net position: Consists of net position with constraints placed on the use either by (1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments; or (2) law through constitutional provisions or enabling legislation.

Statutory Maximum

Rate 2013 Rate

Education 0.7500$ 0.2848$ Operations and maintenance 0.1000 0.0951 Liability, protection and settlement None 0.0019 Audit 0.0050 0.0040 Bond and interest None 0.0528

Total blended rate extended by Cook County and Will County 0.4386$



____________________________________________________________________________

(Continued) 19.

NOTE 1 - REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

Unrestricted 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 District and may be used at the discretion of the governing board to meet current expenses for any purpose.

When both restricted and unrestricted resources are available for use, it is the District’s policy to use restricted resources first, and then unrestricted resources as they are needed. Classification of Revenues and Expenses: The District has classified its revenues and expenses as either operating or non-operating. Operating revenue and expenses include activities that have the characteristics of exchange transactions, such as (1) student tuition and fees; (2) sales and services of auxiliary enterprises, net of scholarship discounts and allowances; (3) salaries and benefits; and (4) materials and supplies. Non-operating revenue and expenses include activities that have the characteristics of non-exchange transactions, such as (1) local property taxes; (2) state appropriations; (3) most federal, state, and local grants and contracts and federal appropriations; and (4) interest expense on long term debt. Federal Financial Assistance Programs: The District participates in federally funded Pell Grants, SEOG Grants, and Federal Work-Study and Federal Family Education Loans programs. Federal programs are audited in accordance with the Single Audit Act Amendments of 1996, the U.S. Office of Management and Budget Revised Circular A-133, Audit of States, Local Government and Non-Profit Organizations, and the Compliance Supplement. On-Behalf Payments for Fringe Benefits and Salaries: The District recognizes as revenues and expenses contributions made by the State of Illinois to the State Universities Retirement System on behalf of the District’s employees. In fiscal year 2014, the state made contributions of $6,906,892 on behalf of the District. Use of Estimates: The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenditures during the reporting period. Actual results could differ from those estimates. NOTE 2 - CASH AND CASH EQUIVALENTS, AND INVESTMENTS The Illinois Public Community College Act and the Illinois Investment of the Public Funds Act allow funds belonging to the District to be invested. District policy delegates this authority to the Treasurer of the Board of Trustees as permitted by Illinois law.



____________________________________________________________________________

(Continued) 20.

NOTE 2 - CASH AND CASH EQUIVALENTS, AND INVESTMENTS, CONTINUED In accordance with the District’s investment policy, funds may be invested in the following types of securities within certain limitations: demand deposits of commercial banks and savings and loan institutions which are insured by the Federal Deposit Insurance Corporation (FDIC) or Federal Savings and Loan Insurance Corporation (FSLIC), obligations issued by the United States, short-term obligations of U.S. corporations, and mutual funds. The District may also invest in the Illinois Funds, the Illinois School District Liquid Asset Fund and the Illinois Institutional Investors Trust. Uninsured investments or those not guaranteed by the United States must be collateralized to the extent of 110 percent of market value of the deposit principal. Cash and Cash Equivalents: As of June 30, 2014, the carrying amount of the District’s deposits was $2,833,464, with bank balances of $3,121,890. All account balances at banks were either insured by the Federal Deposit Insurance Corporation (FDIC) for $250,000 or collateralized with securities of the U.S. government or with letters of credit issued by the Federal Home Loan Bank held in the District’s name by financial institutions acting as the District’s agent. Custodial credit risk for deposits with financial institutions is the risk that in the event of bank failure, the District’s deposits may not be returned to it. The District is not subject to custodial risk for deposits as all deposits are covered by federal depository insurance or collateralized with securities held by the District or its agent in the District’s name. Investments: The following schedule reports the fair values and maturities (using the segmented time distribution method) for the District’s investments at June 30, 2014.

Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of investments. The District does not have a formal policy to minimize exposure to interest rate risk.

GreaterLess than One to Five Six to Ten than Ten

Fair Value One Year Years Years YearsCertificate of deposits 799,188$ -$ 799,188$ -$ -$ FHLMC 258,595 - 258,595 - - FNMA 230,272 - 230,272 - - US Treasury Bond 359,401 - - 119,040 240,361 US Treasury Note 2,012,441 - 594,838 1,417,603 - MM Mutual Funds 57,901 57,901 - - - State Treasurer IL Funds 1,625,554 1,625,554 - - - IL Institutional Investors Trust 1,762,859 1,762,859 - - -

Total investments 7,106,211$ 3,446,314$ 1,882,893$ 1,536,643$ 240,361$

Investment Maturities



____________________________________________________________________________

(Continued) 21.

NOTE 2 - CASH AND CASH EQUIVALENTS, AND INVESTMENTS, CONTINUED Custodial risk for investments is the risk that, in the event of failure of the counterparty to the investment, the District will not be able to recover the value of its investments that are in the possession of an outside party. The District was fully collateralized as of June 30, 2014. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The District limits its credit risk by investing primarily in obligations guaranteed by the U.S. or its agencies or those guaranteed by the U.S. Mutual funds must invest in investment grade or global government short-term bonds, have assets in excess of $100 million, and be rated in one of the 10 highest classifications established by a recognized rating service. Mutual funds cannot be more than 10 percent of the District’s investments. Commercial paper must be short-term obligations of corporations organized in the United States, invested in companies with assets exceeding $500 million, and rated at one of the three highest classifications established by at least two standard rating services. Commercial paper cannot be more than one-third of the District’s investments. At June 30, 2014, the District did not invest in any commercial paper. State Treasurer Illinois Funds is an investment pool managed by the State of Illinois, Office of the Treasurer, which allows governments within the state to pool their funds for investment purposes. Illinois Funds is not registered with the SEC as an investment company but does operate in a manner consistent with Rule 2a7 of the Investment Company Act of 1940. Therefore, the investments held in the Illinois funds are not subject to custodial credit risk. Credit ratings for the District’s investments as described by Standard & Poor’s at June 30, 2014, excluding investments in U.S. Treasuries which are not considered to have credit risk, and investments in money market mutual funds are as follows:

One of the U.S. Treasury Department’s objectives for conservatorships is to protect bondholders. As such, declines in fair value below the cost for investments in Freddie Mac and Fannie Mae bonds (that is, debt securities) may be treated as temporary. At year end, the District’s intent is to hold the bonds until they recover. Concentration of Credit Risk: The District places the following limits on the amounts the District may invest in any one issuer: No more than 10% of the District’s investment portfolio can be invested in mutual funds. The total of deposits at any one financial institution may not exceed 75% of the capital stock and surplus of that institution.

Investment typeStandard & Poor's

FHLMC AA+FNMA AA+State Treasurer IL Funds AAAmIL Institutional Investors Trust AAAm



____________________________________________________________________________

(Continued) 22.

NOTE 2 - CASH AND CASH EQUIVALENTS, AND INVESTMENTS, CONTINUED As of June 30, 2014, the District had investments, excluding those in U.S. Treasuries, greater than 5% of its overall portfolio invested in the following:

Issuer PercentageIllinois Institutional Investors Trust 21%

The Illinois Funds 24%

The above investments represent concentration of credit risk. These investments are in accordance with the District’s investment policy. The above cash, cash equivalents, and investments totaling $9,939,675 are reported in the financial statements as:

Cash and cash equivalents 3,562,964$ Restricted cash and cash equivalents 2,717,465 Long-term investments 3,659,246

Total 9,939,675$



____________________________________________________________________________

(Continued) 23.

NOTE 3 - CAPITAL ASSETS A summary of the changes in capital assets is as follows:

NOTE 4 - CAPITAL LEASES The District has entered into seven lease agreements as lessee for financing the acquisition of campus police squad cars, printing, photocopying, and scanning equipment. The lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of their future minimum lease payments as of the inception date. The total cost and accumulated depreciation of the equipment under capital lease was $438,800 and $219,263, respectively, at June 30, 2014. For the year ended June 30, 2014, depreciation expense was $77,440 on this equipment. The future minimum lease obligations and the net present value of these minimum lease payments as of June 30, 2014 are as follows:

Balance, Balance,July 1, 2013 Additions Deletions June 30, 2014

Capital assets not being depreciatedLand 921,406$ -$ -$ 921,406$ Construction in progress 474,964 838,197 - 1,313,161 Total capital assets not beingdepreciated 1,396,370 838,197 - 2,234,567

Capital assets being depreciatedLand improvements 3,744,377 - - 3,744,377 Buildings and infrastructure 43,222,868 - - 43,222,868 Furniture and equipment 10,239,573 289,703 (78,908) 10,450,368 Total capital assets being depreciated 57,206,818 289,703 (78,908) 57,417,613

Less accumulated depreciationLand improvements 2,608,951 101,029 - 2,709,980 Buildings and infrastructure 17,670,530 896,544 - 18,567,074 Furniture and equipment 7,802,554 497,455 (78,906) 8,221,103 Total accumulated depreciation 28,082,035 1,495,028 (78,906) 29,498,157

Net capital assets being depreciated 29,124,783 (1,205,325) (2) 27,919,456

Net capital assets 30,521,153$ (367,128)$ (2)$ 30,154,023$



____________________________________________________________________________

(Continued) 24.

NOTE 4 - CAPITAL LEASES, CONTINUED

NOTE 5 - CHANGES IN DEBT The following is a summary of debt transactions of the District for the year ended June 30, 2014:

During Fiscal Year Ending June 30, Total2015 124,294$ 2016 110,816 2017 56,668 2018 53,290 2019 10,750

Total minimum lease payments 355,818 Less amount representing interest (107,173)

Present value of minimum lease payments 248,645$

Outstanding Debt as of

July 1, 2013 Additions / Accretions Reductions

Outstanding Debt as of

June 30, 2014 Due Within One Year

General obligation bonds1999A Issue 945,000$ -$ 465,000$ 480,000$ 480,000$ 2005A Issue 525,000 - 70,000 455,000 230,000 2005B Issue 3,004,401 135,648 - 3,140,049 - 2005C Issue 3,180,000 - 605,000 2,575,000 485,000 2009 Issue 1,220,000 - - 1,220,000 - 2010 Issue 3,065,000 - 60,000 3,005,000 65,000 Unamortized charges:

Unamortized premium 22,226 - 3,047 19,179 - Unamortized discount (3,900) - (3,006) (894) -

Total general obligation bonds 11,957,727 135,648 1,200,041 10,893,334 1,260,000 Early retirement benefits 479,928 - 133,436 346,492 132,370 Compensated absences 420,307 - 12,025 408,282 244,969 Capital leases payable 242,999 73,254 67,608 248,645 80,240

13,100,961$ 208,902$ 1,413,110$ 11,896,753$ 1,717,579$



____________________________________________________________________________

(Continued) 25.

NOTE 5 - CHANGES IN DEBT, CONTINUED

The outstanding debt consists of the following:

A general obligation bond issue dated May 27, 1999. Principal payments are dueannually beginning on December 1, 2012 through December 1, 2014. Interest ispayable on June 1 and December 1 at 5.40% to 5.50%

$ 480,000

A general obligation bond issue dated February 1, 2005. Principal payments aredue annually beginning on December 1, 2013 through December 1, 2015.Interest is payable on June 1 and December 1 at 4.00%

455,000

A general obligation bond issue dated February 23, 2005. Principal payments are due annually beginning on December 1, 2015 through December 1, 2019.Interest is payable only on maturity dates at 4.25% to 4.65%

3,140,049

A general obligation refunding bond issue dated December 1, 2005. Principalpayments are due annually through December 1, 2018. Interest is payable onJune 1 and December 1 at 4.00% to 4.25%.

2,575,000

A general obligation refunding bond issue dated November 17, 2009. Principalpayments are due annually through December 1, 2020 beginning December 2018. Interest is payable on June 1 and December 1 at 2.00% to 4.00%

1,220,000

A general obligation bond issue dated April 21, 2010. Principal payments are due annually through December 1, 2022. Interest is payable on June 1 and December 1 at 2.50% to 4.00%

3,005,000

Unamortized charges, unamortized premium 19,179 Unamortized charges, unamortized discount (894)Early retirement benefits 346,492 Compensated absences 408,282 Capital leases payable 248,645

Total debt 11,896,753

Less: current portion (1,717,579)

Total long-term debt $10,179,174



____________________________________________________________________________

(Continued) 26.

NOTE 5 - CHANGES IN DEBT, CONTINUED The annual debt service requirement to amortize the outstanding debt as of June 30, 2014, excluding unamortized premium of $19,179, discount of $894, early retirement benefits of $346,492 compensated absences of $408,282 and capital lease payments of $248,645, is as follows:

A computation of the legal debt margin of the District as of June 30, 2014 is as follows:

Early Retirement Benefits: As provided for in the teacher union agreements, a faculty member is permitted to participate in the “Early Retirement Plan” prior to reaching the age of 65. Once all requirements are met, the teacher is qualified to receive early retirement compensation at the rate of 1/5 of the base salary received for the last year of full-time teaching. Compensation is to be paid monthly for a maximum of five (5) years, provided that no payment is to be made after the participant has reached the age of 65. For the year ended June 30, 2014, the District had incurred $133,436 of the cost under this plan for retired participants. The liability under these agreements of $346,492 is due as follows:

Due Fiscal Year Ending June 30, Principal Interest Total

2015 1,260,000$ 284,950$ 1,544,950$ 2016 1,315,000 235,061 1,550,061 2017 1,355,000 198,575 1,553,575 2018 1,390,000 172,938 1,562,938 2019 1,410,000 151,763 1,561,763

2020 - 2023 4,765,000 295,650 5,060,650

11,495,000$ 1,338,936$ 12,833,936$

1,071,294

(1,672,960)

10,893,334$

Accreted interest as of June 30, 2014

Total accretion over life of 2005B Bonds

Total outstanding bonds on Statement of Net Position

Assessed valuation - 2013 3,083,864,147$

Legal debt limit - 2.875% of assessed valuation 88,661,094$ Debt applicable to debt limit, general obligation bonds (10,875,049)

Legal debt margin 77,786,045$



____________________________________________________________________________

(Continued) 27.

NOTE 5 - CHANGES IN DEBT, CONTINUED

NOTE 6 - DEFEASED DEBT In fiscal year 2006, the District issued $5,950,000 of general obligation refunding bonds to provide resources to purchase U.S. Government, State and Local Government Series securities that were placed in an irrevocable trust for the purpose of generating resources for future debt service payments on $5,740,000 of general obligation bonds. As a result, the refunded bonds are considered to be defeased and the liability has been removed from the statement of net position. As of June 30, 2014, outstanding obligations considered defeased amounted to $2,790,000. NOTE 7 - RETIREMENT COMMITMENTS - STATE UNIVERSITIES RETIREMENT SYSTEM Plan Description: The District contributes to the State Universities Retirement System of Illinois (SURS), a cost-sharing multiple-employer defined benefit pension plan with a special funding situation whereby the State of Illinois makes substantially all actuarially determined required contributions on behalf of the participating employers. On behalf payments of fringe benefits and salaries for the government’s employees were recognized as revenues and expenditures/expenses during the period by the College. SURS was established July 21, 1941 to provide retirement annuities and other benefits for staff members and employees of the 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 Section 5/15, Chapter 40, 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 writing to SURS, 1901 Fox Drive, Champaign, IL 60820, by calling 1-800-275-7877 or by accessing the web site www.surs.org.

During Fiscal Year Ending June 30, Total

2015 132,370$ 2016 99,680 2017 73,850 2018 40,592 Total 346,492$



____________________________________________________________________________

(Continued) 28.

NOTE 7 - RETIREMENT COMMITMENTS - STATE UNIVERSITIES RETIREMENT SYSTEM, CONTINUED Funding Policy: Plan members are required to contribute 8.0% of their annual covered salary, and substantially all employer contributions are made by the State of Illinois on behalf of the individual employers at an actuarially determined rate. The current rates for the years ended June 30, 2014, 2013, and 2012 were 35.80%, 35.20% and 34.51%, respectively, of annual covered payroll. The contribution requirements of plan members and employers are established and may be amended by the Illinois General Assembly. The employer contributions to SURS for the years ended June 30, 2014, 2013 and 2012 were $6,918,488, $6,563,549 and $4,630,147 respectively, and were equal to the required contributions for each year. NOTE 8 - RISK MANAGEMENT The District 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. The District is a member of the Illinois Community College Risk Management Consortium (Consortium), a voluntary cooperative agency of Illinois public community colleges. The cooperative provides risk management for property and liability insurance and workers’ compensation insurance of the District. Its purpose is to jointly self-insure certain risks up to an agreed-upon retention limit and to obtain appropriate levels of excess and stop-loss reinsurance over the selected retention limits at optional rates. As of June 30, 2014, the aggregate loss limits were as follows: property - $300,000,000; liability - $16,000,000; and workers’ compensation - $500,000. The members of the Consortium pool risk and may share in the cost of losses and surpluses. There is no direct interest percentage calculated for each of the community colleges. One representative from each member serves on the board of the Consortium, and each board member has one vote on the board. None of the members of the Consortium has any direct interest in the Consortium. The District, along with other members, has a contractual obligation to fund any deficit attributable to a membership year during which it was a member. Supplemental contributions may be required to fund these deficits, but none has been required in any of the past three fiscal years.



____________________________________________________________________________

(Continued) 29.

NOTE 9 - JOINT VENTURE The District is a participant with St. James Hospital & Health Centers (St. James) in a joint venture to operate Chicago Heights Fitness, LLC, a health, fitness and recreation complex. A four-member board composed of two appointees from each participant governs Chicago Heights Fitness, LLC. In 1999, the District contributed $2,000,000, St. James contributed $911,000 for equipment and $250,000 of operating cash, and the Chicago Heights Park District (Park District) prepaid $1,800,000 for a 40-year lease of the facility. The approximate cost of the complex was $10,000,000 with the remaining costs financed by St. James. St. James is responsible for operating the complex and for a rental charge to pay the debt service on the complex. The investment is recorded at the historical cost on the District’s financial statements. There are no additional commitments expected to be made by the District. In addition, St. James is obligated to repay the District’s investment upon dissolution of the entity. Currently, St. James, the Park District, and the District share the facility for use of the respective organization’s activities. Complete financial statements can be obtained for Chicago Heights Fitness, LLC from the St. James Hospital & Health Centers, 1423 Chicago Road, Chicago Heights, Illinois 60411. Selected financial information from the December 31, 2013 financial statements for St. James is presented below:

Total assets $5,063,230Total liabilities 8,545,955Net position (3,482,275)Total revenues 524,678Total expenses 615,245

NOTE 10 - CAPITAL DEVELOPMENT BOARD PROJECTS As of June 30, 2014, the District has three projects with the Illinois Community College Capital Development Board (CDB), CDB numbers 810-076-013, 810-076-014 and 810-076-015. The 810-76-013 project is for the following: Package 1 – Dental building and Tech Wing removal and replacement of roofing system. Package 2 – Main Building repair and replace all spandrel beams, tuck point exterior and repair and screen fresh intake. Package 3 – Install new phase guard system and replace five aging boilers. Package 4 – Upgrade energy management system to digital controls. Package 5 – Upgrade elevators to meet new braking system code. The 810-076-014 project is for the purchase and installation of signage for the campus. According to the terms of the arrangement, the District has funded an escrow account with 25 percent of the total estimated contract price for this project.



____________________________________________________________________________

(Continued) 30.

NOTE 10 - CAPITAL DEVELOPMENT BOARD PROJECTS, CONTINUED The 810-076-015 project is for repair and replacement of concrete walking paths around the campus. According to the terms of the arrangement, the District has funded an escrow account with 25 percent of the total estimated contract price for this project. According to the terms of the arrangement, the District will fund 25 percent of the total estimated contract price. Currently, the District has funded the escrow account $1,733,333. The CDB will be funding 75% of the contracted amount. Upon completion, the District receives ownership and recognizes a capital contribution. During fiscal year 2014 the District completed $807,552 in capital development improvements. Total estimated construction commitments for these projects amount to approximately $2,200,000 NOTE 11 – RETIREE HEALTH PLAN In addition to the pension plan described previously, the District contributes to the State of Illinois Community College Health Insurance Security Fund (CIP), a cost-sharing multiple-employer defined benefit postemployment healthcare plan administered by the State of Illinois. CIP provides health, vision and dental benefits to retired staff and dependent beneficiaries of participating Community Colleges. The benefits, employer, employee, retiree and state contributions are dictated by Illinois Compiled Statutes (ILCS) through the State Group Insurance Act of 1971 (Act) and can only be changed by the Illinois General Assembly. Separate financial statements, including required supplementary information, may be obtained from the Department of Central Management Services, 719 Stratton Office Building, Springfield, Illinois 62706. The Act requires every active contributor (employee) of SURS to contribute .5% of covered payroll and every community college district to contribute .5% of covered payroll. Retirees pay a premium for coverage that is also determined by ILCS. The State Pension Funds Continuing Appropriation Act (40/ILCS 15/1.4) requires the State of Illinois to make an annual appropriation to the CIP to cover any expected expenditures in excess of the contributions by active employees, employers and retirees. The result is pay as you go financing of the plan. Employer contributions for the current and preceding two years are as follows:

2014 $ 77,643 2012 80,333 2013 81,479

The State contribution to the CIP plan is reported as an “on-behalf-payment” in accordance with GASB Statement No. 24, Accounting and Financial Reporting for Certain Grants and Other Financial Assistance.



____________________________________________________________________________

31.

NOTE 12 – NEW GOVERNMENTAL ACCOUNTING STANDARDS In June 2012, the GASB issued Statement 68, Accounting and Financial Reporting for Pensions; an amendment of GASB Statement No. 27. This Statement replaces the requirements of Statement No. 27 and No. 50, related to pension plans that are administered through trust or equivalent arrangements. The requirement of GASB No. 27 and No. 50 remain applicable for pensions that are not administered as trust or equivalent arrangements. The requirements of this statement are effective for financial statements for fiscal years beginning after June 15, 2014. Management has not determined what impact, if any, this GASB statement might have on its financial statements. In January 2013, the GASB issued Statement 69, Government Combinations and Disposals of Government Operations. This Statement establishes accounting and financial reporting standards for mergers, acquisitions, and transfers of operations (i.e., government combinations). The Statement also provides guidance on how to determine the gain on loss on a disposal of government operations. This Statement applies to all state and local governmental entities. The requirement of this Statement should be applied prospectively and are effective for government combinations and disposal of government operations occurring in financial reporting periods beginning after December 15, 2013. However, earlier application of this Statement is encouraged. The College has considered the impacts of implementing this Statement and has determined that the implementation will not have a significant effect on the financial statements. In November 2013, the GASB issued Statement 71, Pension Transition for Contributions Made Subsequent to the Measurement Date. This statement addresses the issue regarding the application of the transition provision of Statement No. 68, Accounting and Financial Reporting for Pensions. The Statement eliminates the source of potential significant understatement of restating the beginning net position and expense in the first year of implementing Statement 68 in the accrual basis financial statements of employers and nonemployer contributing entities. This Statement should simultaneously be implemented with Statement 68. Management has not determined what impact, if any, this GASB statement might have on its financial statements.

32.

2014 2013 2012 2011 2010 2009 2008 2007 2006 2005

Net PositionNet investment in capital assets 20,419,228$ 20,611,025$ 19,823,169$ 19,542,480$ 16,002,785$ 17,183,669$ 17,956,715$ 17,550,111$ 16,193,291$ 14,842,570$ Restricted for

Capital Projects 3,394,471 3,544,673 3,539,619 4,073,206 5,310,167 1,733,199 3,874,892 3,187,359 4,697,829 5,088,404 Debt Service 518,908 579,106 519,556 308,720 344,651 1,689,681 3,056,351 1,905,092 1,803,883 1,680,787 Other Purposes 6,669,189 6,677,670 6,679,799 7,846,295 9,442,747 11,292,483 16,924,290 14,049,789 13,028,967 12,437,625

Unrestricted 4,585,271 1,505,193 1,122,996 (508,798) 325,904 291,360 (8,400,080) 2,957,880 3,402,985 4,515,120

Total Net Position 35,587,067$ 32,917,667$ 31,685,139$ 31,261,903$ 31,426,254$ 32,190,392$ 33,412,168$ 39,650,231$ 39,126,955$ 38,564,506$

Source: College records

Prairie State College - Community College District No. 515Financial TrendsNet Position By ComponentLast Ten Fiscal YearsUnaudited

33.

2014 2013 2012 2011 2010 2009 2008 2007 2006 2005

Operating revenueTuition and fees 6,014,253$ 5,477,847$ 3,449,837$ 2,107,629$ 3,268,123$ 4,054,565$ 8,068,039$ 7,732,761$ 5,387,160$ 6,649,368$ Auxiliary enterprise revenue 859,588 819,707 994,944 2,108,932 1,777,790 1,064,763 1,166,368 1,179,317 1,088,368 983,620

Total operating revenue 6,873,841 6,297,554 4,444,781 4,216,561 5,045,913 5,119,328 9,234,407 8,912,078 6,475,528 7,632,988 Operating expenses

Instruction 12,320,668 12,070,054 11,773,380 11,388,208 10,432,808 10,425,899 10,114,376 9,620,165 9,398,831 8,891,057 Academic support 1,415,145 1,396,659 1,375,486 1,297,852 1,201,557 1,239,053 1,319,210 1,301,681 1,280,136 1,146,534 Student services 4,251,083 4,120,518 3,871,177 3,819,404 2,700,103 2,363,217 2,250,601 7,579,436 5,180,949 5,337,163 Public services 1,103,474 1,317,380 1,176,433 850,325 565,343 1,472,797 1,990,669 2,564,618 2,614,766 2,768,322 Operation and maintenance of plant 3,796,645 3,771,227 4,005,413 4,698,467 4,384,660 4,198,449 4,338,250 3,942,106 3,546,661 3,681,389 Scholarship, student grant and waivers 1,814,889 2,301,557 3,405,769 2,878,507 3,608,032 2,177,012 5,436,062 2,240,009 2,222,324 2,378,015 Institutional support 14,971,947 14,763,078 11,870,946 9,622,311 9,230,213 8,184,230 7,002,275 5,387,941 4,901,627 5,281,197 Auxiliary enterprise 2,280,261 2,319,603 2,585,354 2,510,890 2,209,598 1,293,083 1,191,687 1,050,207 764,554 994,453 Depreciation 1,495,028 1,360,049 1,394,255 1,321,169 1,339,176 1,373,612 1,731,310 1,572,172 1,513,915 2,195,631

Total operating expenses 43,449,140 43,420,125 41,458,213 38,387,133 35,671,490 32,727,352 35,374,440 35,258,335 31,423,763 32,673,761

Operating loss (36,575,299) (37,122,571) (37,013,432) (34,170,572) (30,625,577) (27,608,024) (26,140,033) (26,346,257) (24,948,235) (25,040,773)

Non-operating revenue (expenses)Property tax 14,197,138 13,708,084 14,502,965 12,766,613 11,676,783 11,502,909 11,476,244 11,553,263 11,227,513 9,914,183 Corporate personal property replacement taxes 479,996 474,490 464,390 504,809 389,267 481,176 550,060 514,376 471,466 371,977 State grants 5,145,558 4,271,429 4,646,431 4,936,217 4,749,907 5,053,940 5,449,140 6,080,704 5,817,405 6,362,710 Federal grants 11,689,834 13,179,732 12,765,541 11,785,799 9,529,496 6,521,323 5,754,613 7,221,689 6,933,715 6,098,102 Local grants and contracts 44,220 138,731 141,546 143,695 92,799 124,645 124,156 447,278 517,699 513,378 Intergovernmental 6,906,892 6,550,713 4,643,868 3,435,067 2,929,928 1,901,629 1,458,133 1,071,996 699,093 1,126,885 Investment Income 68,594 (65,761) 288,212 68,392 258,987 385,190 697,307 715,531 490,396 426,205 Interest expense (523,731) (557,617) (563,906) (631,259) (435,226) (595,028) (517,028) (685,306) (752,201) (848,266) Amortization expense - - - - - - - (45,998) (22,999) (610) Other non-operating revenues 428,646 387,664 322,018 698,042 669,498 1,010,464 486,228 - - -

Total non-operating revenue (expenses), 38,437,147 38,087,465 37,211,065 33,707,375 29,861,439 26,386,248 25,478,853 26,873,533 25,382,087 23,964,564

Net income (loss) before capital contributions 1,861,848 964,894 197,633 (463,197) (764,138) (1,221,776) (661,180) 527,276 433,852 (1,076,209)

Capital ContributionsCapital appropriations 807,552 346,864 225,603 298,846 - - - - - - Capital grants and gifts - - - - - - - - 124,397 336,876

807,552 346,864 225,603 298,846 - - - - 124,397 336,876 Change in net position 2,669,400$ 1,311,758$ 423,236$ (164,351)$ (764,138)$ (1,221,776)$ (661,180)$ 527,276$ 558,249$ (739,333)$

Note: (1)

Source: College records

The District is subject to two property tax caps in Illinois whereby the increase in the levy from year to year is limited to the lesser of 5% or the consumer price index for the State as determined by the Illinois Department of Revenue, and individual rates are limited by maximum rates established by Illinois Compiled Statutes

Prairie State College - Community College District No. 515Financial TrendsStatement of Revenues, Expenses and Changes in Net PositionLast Ten Fiscal YearsUnaudited

34.

Levy Year

Residential Property

Commercial Property

Industrial Property

Farm Property

Railroad Property

Other Assessed

Value Total Taxable

Assessed Value

Total Direct Tax Rate

Estimated Actual Taxable Value

2013 2,144,479,986$ 523,367,974$ 332,338,229$ 62,203,272$ 21,474,686$ -$ 3,083,864,147$ 0.439 9,251,592,441$ 2012 2,336,402,763 557,657,988 357,635,493 64,486,576 17,000,485 - 3,333,183,305 0.410 9,999,549,915 2011 2,620,244,048 589,619,825 367,111,733 68,456,142 16,500,145 - 3,661,931,893 0.357 10,985,795,679 2010 3,199,801,869 672,257,891 424,825,318 69,296,583 15,702,338 - 4,381,883,999 0.293 13,145,651,997 2009 3,218,950,045 673,108,963 417,314,412 70,678,098 10,847,881 - 4,390,899,399 0.277 13,172,698,197 2008 3,145,929,228 717,863,576 467,420,138 69,575,840 9,355,878 - 4,410,144,660 0.280 13,230,433,980 2007 2,916,949,837 631,563,877 419,054,945 68,225,241 8,381,777 - 4,044,175,677 0.294 12,132,527,031 2006 2,674,725,067 609,884,039 399,460,944 60,927,021 7,877,746 - 3,752,874,817 0.313 11,258,624,451 2005 2,461,945,182 622,668,338 408,828,344 60,182,275 7,825,897 - 3,561,450,036 0.307 10,684,350,108 2004 2,136,740,754 556,134,552 354,202,328 57,791,215 8,300,543 - 3,113,169,392 0.347 9,339,508,176

______Source:County Clerk's Offices of Cook and Will Counties, Illinois

* 2013 Equalized Assessed Valuations by Classification of Property are not available from Cook County as of the date of this report.

Prairie State College - Community College District No. 515Revenue CapacityAssessed and Estimated Actual Value of Taxable PropertyLast Ten Tax YearsUnaudited

(Continued) 35.

2013 2012 2011 2010 2009 2008 2007 2006 2005 2004Prairie State College

Educational accounts 0.285 0.260 0.225 0.185 0.174 0.146 0.179 0.190 0.179 0.197 Operational and Maintenance accounts 0.095 0.094 0.082 0.067 0.064 0.095 0.028 0.029 0.026 0.029

Bond and Interest Fund 0.053 0.050 0.045 0.037 0.036 0.037 0.040 0.043 0.044 0.051

Audit Fund 0.004 0.004 0.003 0.003 0.003 0.003 0.003 0.003 0.003 0.003 Liability, Protection and Settlement Fund 0.002 0.002 0.002 0.001 - - 0.044 0.047 0.055 0.067

Total 0.439 0.410 0.357 0.293 0.277 0.281 0.294 0.312 0.307 0.347

CountiesCook County 0.560 0.531 0.462 0.423 0.394 0.415 0.446 0.500 0.533 0.593 Cook County Forest Preserve 0.069 0.063 0.058 0.051 0.049 0.051 0.530 0.057 0.060 0.060 Cook County Consolidated Elections 0.031 - 0.025 - 0.021 - 0.012 - 0.014 - Will County 0.622 0.570 0.535 0.508 0.483 0.475 0.483 0.503 0.526 0.529 Will County Building Commission 0.022 0.021 0.020 0.020 0.019 0.019 0.012 0.013 0.012 0.042 Will County Forest Preserve 0.197 0.186 0.169 0.157 0.152 0.145 0.142 0.137 0.148 0.124

TownshipsIn Cook County

Bloom 0.207 0.190 0.168 0.133 0.131 0.129 0.136 0.139 0.135 0.015 Bloom General Assistance 0.079 0.073 0.064 0.051 0.050 0.005 0.052 0.053 0.051 0.055 Bloom Road and Bridge 0.064 0.059 0.052 0.041 0.041 0.040 0.042 0.043 0.041 0.045 Bremen 0.078 0.070 0.061 0.051 0.049 0.049 0.051 0.051 0.049 0.054 Bremen General Assistance 0.016 0.014 0.012 0.009 0.008 0.008 0.008 0.008 0.008 0.008 Bremen Road and Bridge 0.050 0.045 0.039 0.032 0.031 0.031 0.033 0.033 0.032 0.019 Rich 0.304 0.292 0.258 0.202 0.192 0.191 0.196 0.199 0.193 0.211 Rich General Assistance 0.046 0.039 0.034 0.026 0.023 0.022 0.022 0.022 0.022 0.024 Rich Road and Bridge 0.094 0.085 0.074 0.058 0.055 0.054 0.056 0.057 0.058 0.063 Thornton 0.517 0.513 0.442 0.387 0.367 0.358 0.372 0.374 0.360 0.405 Thornton General Assistance 0.214 0.153 0.129 0.096 0.091 0.089 0.092 0.092 0.088 0.098 Thornton Road and Bridge 0.030 0.027 0.023 0.018 0.017 0.016 0.016 0.016 0.015 0.016

In Will County Crete 0.208 0.182 0.164 0.153 0.144 0.143 0.141 0.146 0.151 0.156 Crete Road Funds 0.483 0.428 0.372 0.338 0.306 0.304 0.301 0.311 0.320 0.330 Monee 0.216 0.196 0.170 0.154 0.142 0.140 0.137 0.150 0.158 0.164 Monee Road Funds 0.319 0.290 0.252 0.228 0.209 0.207 0.202 0.222 0.234 0.244 Washington 0.248 0.228 0.208 0.194 0.184 0.180 0.183 0.190 - 0.195 Washington Road Funds 0.582 0.534 0.488 0.454 0.431 0.422 0.428 0.444 0.193 0.458 Washington Community Building - - - - - - - - - 0.043 Will 0.290 0.286 0.278 0.272 0.261 0.259 0.246 0.252 0.253 0.251 Will Road Funds 0.653 0.626 0.573 0.549 0.533 0.530 0.504 0.518 0.526 0.528

Municipalities

Beacher 0.701 0.646 0.602 0.548 0.519 0.505 0.520 0.544 0.583 0.613 Chicago Heights 5.758 5.258 4.820 3.875 3.471 3.099 3.361 3.333 3.252 3.683 Country Club Hills 8.813 8.060 6.927 5.810 5.246 5.164 5.394 3.740 3.454 3.474 Crete 1.714 1.504 1.299 1.805 1.065 1.062 1.054 1.112 1.140 1.175 Flossmoor 3.442 3.245 2.791 2.143 2.044 2.071 2.067 1.633 1.860 2.018 Ford Heights (Formerly East Chicago Heights) 10.380 10.006 9.892 7.837 7.824 6.444 5.889 5.837 5.648 5.838 Frankfort ** 0.339 0.339 0.339 0.340 0.340 0.341 0.354 0.392 0.419 0.441

Prairie State College - Community College District No. 515Revenue CapacityProperty Tax Rates - Direct and Overlapping GovernmentsLast Ten Tax Years

Unaudited

(Continued) 36.

2013 2012 2011 2010 2009 2008 2007 2006 2005 2004


Unaudited

Glenwood 4.727 4.037 3.484 2.774 2.689 2.491 2.410 0.275 2.817 2.557 Hazel Crest 4.834 4.514 3.787 2.788 2.431 2.326 2.190 2.081 1.943 2.161 Homewood 1.674 1.599 1.404 1.145 1.153 1.084 1.192 1.275 1.279 1.263 Lansing 2.667 2.314 2.100 1.568 1.469 1.307 1.376 1.051 1.399 1.541 Lynwood 1.374 1.274 1.072 0.746 0.716 0.732 0.761 0.715 0.728 0.859 Matteson 2.199 2.325 1.702 1.403 1.317 1.521 1.341 1.014 1.719 1.596 Monee 1.749 1.536 1.354 1.232 1.156 0.892 0.873 0.950 0.989 1.011 Olympia Fields 1.967 1.740 1.537 1.191 1.138 1.137 1.146 0.536 0.416 0.513 Park Forest * 12.614 11.059 9.405 6.345 6.025 5.708 5.670 4.947 5.685 6.091 Richton Park 1.945 1.746 1.557 1.248 1.185 1.175 1.272 1.243 1.214 1.478 Sauk Village * 4.374 4.110 3.509 2.358 2.167 2.020 2.204 2.248 2.132 2.083 South Chicago Heights 3.099 2.795 2.532 2.116 2.140 1.959 2.121 2.161 2.123 2.352 Steger ** 1.981 1.801 0.153 1.330 1.155 1.226 1.309 1.285 1.353 1.330 Thornton 3.952 3.772 3.488 2.871 2.496 1.972 1.806 1.697 1.538 2.056 Tinley Park * 1.848 1.725 1.564 1.341 1.270 1.198 1.227 1.202 1.149 1.183 University Park ** 5.035 4.489 4.196 3.958 3.990 4.173 4.238 5.496 5.230 4.738

Special service areasChicago Heights SSA #1 - - - - - - - - 2.585 25.107 Olympia Fields #1 0.763 0.437 0.419 0.263 0.260 0.236 0.253 0.189 0.187 0.225 Thorn Creek Sanitary Dist. 7.000 7.000 6.750 5.662 5.791 5.867 5.299 - - -

Fire protection districtsBeecher 1.041 0.930 0.906 0.886 0.875 0.767 0.770 0.651 0.564 0.473 Crete 1.138 1.001 0.959 0.905 0.883 0.874 0.804 0.749 0.691 0.588 Holbrook 0.250 0.236 0.205 0.173 0.176 0.172 0.183 0.187 0.187 0.206 Miller Woods 0.304 0.332 0.313 0.298 0.307 0.225 0.230 0.236 0.223 0.288 Monee 0.096 0.783 0.782 0.738 0.672 0.661 0.602 0.639 0.520 0.371 Olympia Gardens 0.467 0.588 0.539 0.436 0.451 0.483 0.500 0.540 0.549 0.603 Sunny Crest 0.841 0.744 0.737 0.681 0.642 0.601 0.590 0.560 0.193 0.222 Steger Estates ** 1.021 0.923 0.838 0.777 0.716 0.703 0.703 0.730 0.764 0.798

Public library districtsCrete 0.571 0.516 0.534 0.488 0.441 0.428 0.370 0.321 0.230 0.244 Ford Heights 0.440 0.478 0.478 0.378 0.329 0.265 0.276 0.273 0.265 0.285 Frankfort ** 0.199 0.184 0.183 0.170 0.159 0.155 0.154 0.163 0.148 0.183 Glenwood/Lynwood 0.666 0.634 0.647 0.526 0.504 0.495 0.524 0.475 0.457 0.256 Grande Prairie 0.455 0.409 0.357 0.271 0.262 0.265 0.273 0.279 0.277 0.312 Homewood 0.728 0.712 0.623 0.506 0.501 0.509 0.534 0.546 0.543 0.585 N.L. McConathy (formerly Sauk Village) 0.450 0.415 0.365 0.274 0.253 0.256 0.268 0.269 0.253 0.277 Peotone 0.110 0.101 0.089 0.082 0.077 0.076 0.075 0.081 0.086 0.088 Richton Park 0.932 0.839 0.495 0.393 0.370 0.371 0.383 0.384 0.378 0.416 Steger/S. Chicago Heights ** 0.240 0.231 0.174 0.163 0.146 0.160 0.162 0.146 0.172 0.171 University Park 0.472 0.432 0.487 0.381 0.422 0.495 0.493 0.568 0.543 0.582

Park districtsChicago Heights 0.792 0.724 0.645 0.518 0.497 0.418 0.590 0.544 0.540 0.611 Country Club Hills 0.691 0.661 0.604 0.495 0.456 0.450 0.477 0.507 0.554 0.657 Crete 0.459 0.405 0.349 0.319 0.287 0.289 0.292 0.310 0.325 0.344 Frankfort * 0.222 0.209 0.196 0.186 0.175 0.202 0.218 0.269 0.247 0.259

(Continued) 37.

2013 2012 2011 2010 2009 2008 2007 2006 2005 2004


Unaudited

Frankfort Square ** 0.627 0.585 0.538 0.518 0.440 0.421 0.416 0.479 0.469 0.491 Hazel Crest 0.925 0.816 0.714 0.567 0.554 0.569 0.603 0.659 0.644 0.703 Homewood-Flossmoor 0.958 0.946 0.898 0.723 0.715 0.730 0.775 0.800 0.797 0.869 Lan Oak 0.457 0.422 0.376 0.306 0.292 0.292 0.310 0.280 0.275 0.297 Olympia Fields 0.783 0.679 0.592 0.458 0.433 0.429 0.452 0.465 0.456 0.519 Tinley Park * 0.493 0.455 0.411 0.359 0.353 0.351 0.376 0.387 0.379 0.422

School districts# 153 5.580 5.151 4.515 3.378 3.417 3.490 3.671 3.777 3.796 0.412 # 159 7.276 6.489 5.703 4.641 4.303 4.042 4.041 4.088 4.014 4.418 # 157-C (Cook only portion is in 515) 3.958 4.053 3.895 3.497 3.256 - - - - - # 160 5.385 4.887 4.241 3.265 3.222 3.057 3.012 3.073 3.144 3.509 # 161 5.742 5.221 4.650 3.648 3.558 3.673 3.806 3.945 3.882 4.238 # 162 6.209 5.523 4.905 3.808 3.629 3.623 3.758 3.653 3.519 3.983 # 163 11.733 10.992 9.543 6.747 6.444 6.616 6.975 7.403 7.298 8.452 # 167 5.718 5.595 4.651 3.586 3.471 3.352 3.517 3.516 3.434 3.731 # 168 5.748 5.348 4.711 3.585 3.597 3.916 4.143 4.185 4.084 4.739 # 169 17.796 15.843 11.868 9.496 8.579 10.124 10.543 11.308 7.843 7.336 # 170 6.861 6.316 4.951 3.981 3.907 3.731 4.077 4.683 4.625 4.561 # 171 3.341 5.174 4.578 3.580 3.511 3.143 3.316 3.442 3.407 3.614 # 172 5.676 5.068 4.555 3.507 3.145 2.810 3.300 3.491 3.690 3.889 # 194 * 4.502 4.089 3.624 3.142 2.995 2.923 3.004 3.000 2.851 3.289 # 200-U 6.231 6.107 5.619 5.214 4.954 4.844 4.896 5.113 5.238 4.810 # 201-U 8.137 7.268 6.349 5.726 5.238 4.805 4.721 4.992 5.188 5.336 HSD # 206 * 4.130 3.835 3.430 2.750 2.630 2.529 2.697 2.724 2.667 2.995 HSD #210 (Lincolnway-Cook only portion is in 515) 2.081 1.939 1.887 1.737 1.618 - - - - - HSD # 227 5.830 5.302 4.687 3.705 3.513 3.459 3.575 3.660 3.626 3.975 HSD # 233 5.830 5.351 4.676 3.723 3.686 3.787 3.966 4.103 4.073 4.345

Miscellaneous districtsMetropolitan Water Reclamation 0.417 0.370 0.320 0.274 0.261 0.252 0.263 0.284 0.315 0.347 South Cook County TB Sanitarium - - - - - - - 0.005 0.005 0.001 South Cook County Mosquito Abatement 0.016 0.014 0.012 0.010 0.009 0.009 0.006 0.007 0.010 0.012

Prairie State Community College College District #515In Cook County 0.439 0.410 0.357 0.293 0.277 0.280 0.294 0.292 0.292 0.341 In Will County 0.443 0.432 0.347 0.303 0.261 0.240 0.309 0.379 0.357 0.367

** Located in both Cook and Will counties. Will County rate used due to larger equalized assessed valuation in Will County.

Source: Cook and Will county clerks' offices, (as reported by Donna Miller of Municpal Research Service, Inc.)

* Located in both Cook and Will counties. Cook County rate used due to larger equalized assessed valuation in Cook County.

38.

Tax Year Tax Year2013 Percent of 2004 Percent of

Assessed Total Assessed TotalValue District's Value District's

Taxpayer Type of Business (Million) Rank Total EAV* (Million) Rank Total EAV*Wal-Mart Stores Discount department stores 19.0$ 1 0.61% 13.9$ 4 0.45%Exeter 702 Commerce Center LLC Industrial properties 16.6 2 0.54%Exeter 300 Central LLC andExeter 500 Crossings LLCRT Dralle Rd LLC Industrial property 14.8 3 0.48%Cups Number One LLC Industrial properties 13.7 4 0.44%Target Prop Tax Discount department stores 11.1 5 0.36% 9.7 10 0.31%New Plan Excel Prop Tr Supermarket and one-story stores 11.0 6 0.36% UPLLRE LLC Cold Storage 10.9 7 0.35%GCAA Attn Manheim Tax Industrial property 10.4 8 0.34% 14.2 3 0.46%Inland America Homewood Shopping center and one-story stores 9.9 9 0.32%Ford Motor Company Manufacturing plant (of cars) 8.0 10 0.26% 18.8 1 0.60%Realty American Group Shopping center 15.5 2 0.50%Ameritech Illinois Telecommunications 10.8 5 0.35%Albertsons Supermarkets 10.6 6 0.34%K Mart Discount department stores 10.3 7 0.33%Ace Hardware Paint factory 9.8 8 0.32%Neja Group LLC SSFX Theaters and commercial parcels 9.7 9 0.31%

125.4$ 4.06% 123.3$ 3.97%

* Total 2013 levy information is not finalized at the time of publication.

Source: Offices of the Cook and Will County Clerks

Unaudited2013 Levy Year 2004 Levy Year

Prairie State College - Community College District No. 515Revenue CapacityPrincipal Property TaxpayersCurrent Levy Year and Nine Years Ago

39.

Levy Year

Assessed Valuation

Direct Tax Rate

Taxes Extended

Collections Levy Year

Percent Collections Levy Year

Subsequent Year Collections

Total Collected Through

June 30, 2014

Percent of Taxes

Extended Collected Through

June 30, 2014 2013 3,083,864,147$ 0.439 14,162,580$ 6,522,027$ 46.05% -$ 6,522,027$ 46.05%2012 3,333,183,305 0.410 14,359,102 6,475,669 45.10% 6,525,681 13,001,350 90.54%2011 3,661,931,893 0.357 13,811,889 6,231,051 45.11% 5,984,877 12,215,928 88.45%2010 4,381,883,999 0.293 13,200,004 6,055,764 45.88% 6,123,902 12,179,666 92.27%2009 4,390,899,399 0.277 12,565,516 5,773,018 45.94% 5,789,169 11,562,187 92.02%2008 4,410,144,660 0.280 12,247,599 4,942,956 40.36% 6,461,500 11,404,456 93.12%2007 4,044,175,677 0.294 12,035,744 4,954,422 41.16% 6,638,756 11,593,178 96.32%2006 3,752,874,817 0.313 11,734,255 5,031,131 42.88% 6,619,208 11,650,339 99.28%2005 3,561,450,036 0.307 10,922,777 5,006,304 45.83% 5,649,208 10,655,512 97.55%2004 3,113,169,392 0.347 10,802,609 4,646,235 43.01% 5,947,905 10,594,140 98.07%

Source: Cook & Will County Assessor's OfficesNotes:

(1)

(2)

Property taxes in Cook County, Illinois are levied based on a calendar year (January 1-December 31) and are due in two installments in the calendar year following the year of the levy. These taxes are payable in two installments in March and September of the following year. The District receives significant distributions of tax collections approximately one month after these due dates.

The District is subject to two property tax caps in Illinois whereby the increase in the levy from year to year is limited to the lesser of 5% or the consumer price index for the State as determined by the Illinois Department of Revenue, and individual rates are limited by maximum rates established by Illinois Compiled Statutes.

Prairie State College - Community College District No. 515Revenue CapacityProperty Tax Levies and CollectionsLast Ten Calendar YearsUnaudited

40.

Tuition and Fee Revenues Generated

Fiscal Year 10th Day

Headcount Apportionment

Credit Hours 2014 4,570 42,161 124 291 346 13,608,113$ 2013 5,064 46,631 116 275 315 13,108,628

2012 5,416 48,729 104 271 344 10,779,558 2011 5,697 53,802 97 254 342 10,618,518 2010 5,791 53,352 92 249 337 9,730,654 2009 5,854 52,164 87 244 332 11,282,930 2008 5,368 45,016 82 244 332 10,001,819 2007 5,507 45,399 76 239 327 10,709,761 2006 5,294 43,670 76 220 300 9,898,160 2005 5,083 42,138 72 200 207 10,429,368

Note:

Data Source:

UnauditedTuition and Fee Rates

Tuition and fee revenue may differ from the Comprehensive Annual Financial Statements, Statement of Revenues, Expenses and Changes in Net Assets, as they are shown on this table before adjustment for scholarship allowances.

Prairie State Community College records and Comprehensive Annual Financial Reports.

Fall

In-District Tuition and Fees per Semester

Hour

Out-of-District

Tuition and Fees per Semester

Hour

Out-of-State

Tuition and Fees per Semester

Hour

Total of Tuition and

Fee Revenues - Educational Purposes

Prairie State College - Community College District No. 515Revenue CapacityEnrollment, Tuition and Fee Rates, Credit Hours, and

Last Ten Fiscal Years

41.

Fiscal Year General Obligation

Bonds

Percentage of Actual Taxable Value of Property

(1) Per

Capita (2) 2014 10,875,049$ 0.353 39.38$ 2013 11,022,040 0.331 40.46 2012 12,172,040 0.332 44.68 2011 13,940,780 0.318 63.61 2010 14,427,040 0.329 67.42 2009 12,257,040 0.278 57.28 2008 13,188,575 0.326 61.64 2007 14,282,040 0.381 66.75 2006 15,227,040 0.428 76.59 2005 15,872,040 0.510 79.83

(1)

(2) Population data can be found in Demographic and Economic Information.

See Property Tax Levies and Collections for taxable value data.

Prairie State College - Community College District No. 515Debt Capacity

Last Ten Fiscal YearsUnaudited

Ratio of Net General Bonded Debt to Assessed Value andNet General Bonded Debt Per Capita

(Continued) 42.

OutstandingBonds Percent Amount

Cook County $3,572,060,000 1.809% $64,618,565Cook County Forest Preserve District 124,455,000 (5) 1.809% 2,251,391Metropolitan Water Reclamation District 2,458,515,565 (1) 1.349% 33,165,375

Will County 0 (2)(5) 4.369% 0Will County Forest Preserve 143,953,104 (4) 4.369% 6,289,311

Municipalities: Beecher 1,040,000 100.000% 1,040,000Chicago Heights 61,912,722 (4) 100.000% 61,912,722Country Club Hills 57,858,232 (4) 43.197% 24,993,020Crete 0 (2)(5) 100.000% 0Flossmoor 7,675,000 100.000% 7,675,000Frankfort 0 (5) 0.045% 0Glenwood 15,215,000 100.000% 15,215,000Hazel Crest 1,140,000 23.048% 262,747Homewood 515,000 98.462% 507,079Lansing 17,930,000 0.399% 71,541Lynwood 630,000 (5) 50.506% 318,188Matteson 3,975,000 100.000% 3,975,000Monee 4,605,000 (6) 100.000% 4,605,000Olympia Fields 1,020,000 (5) 100.000% 1,020,000Park Forest 8,775,000 100.000% 8,775,000Richton Park 0 (5) 100.000% 0Sauk Village 370,000 (5) 100.000% 370,000South Chicago Heights 1,103,979 (4) 100.000% 1,103,979Steger 0 (3)(5) 100.000% 0Thornton 2,985,000 5.002% 149,310Tinley Park 39,945,000 4.950% 1,977,278University Park 7,880,000 100.000% 7,880,000

Fire Protection District: Crete Fire Protection 0 (5) 100.000% 0Steger Estates Fire 0 (3) 100.000% 0

Public Library Districts: Glenwood-Lynwood 0 (5) 73.622% 0Richton Park 5,485,000 100.000% 5,485,000

Park Districts: Chicago Heights 1,430,000 100.000% 1,430,000Country Club Hills 558,620 (5) 42.635% 238,168Crete 222,000 (5) 100.000% 222,000Frankfort 355,000 0.052% 185Frankfort Square 2,141,632 (4)(5) 5.173% 110,787Hazel Crest 885,000 23.048% 203,975Homewood-Flossmoor 1,198,775 (5) 99.053% 1,187,423Lan Oak 380,000 (5) 0.402% 1,528Olympia Fields 755,555 (5) 100.000% 755,555Tinley Park 12,707,000 3.766% 478,546

Applicable to District

Prairie State College - Community College District No. 515Debt CapacityDirect and Overlapping General Obligations Bonded DebtJune 30, 2014Unaudited

(Continued) 43.

OutstandingBonds Percent Amount

Applicable to District

Prairie State College - Community College District No. 515Debt CapacityDirect and Overlapping General Obligations Bonded DebtJune 30, 2014Unaudited

Schools: #153 12,829,884$ (4) 100.000% 12,829,884$ #157-C 25,566,038 (4) 0.004% 1,023 #159 25,809,947 (4)(5) 100.000% 25,809,947 #160 10,736,621 (4) 60.031% 6,445,301 #161 9,540,000 98.831% 9,428,477 #162 26,391,386 (4) 100.000% 26,391,386 #163 17,125,000 100.000% 17,125,000 #167 16,290,000 100.000% 16,290,000 #169 14,345,000 (5) 100.000% 14,345,000 #170 3,936,335 (4) 100.000% 3,936,335 #171 6,023,092 5.334% 321,272 #172 1,050,000 100.000% 1,050,000 #194 2,745,000 100.000% 2,745,000 #200-U 14,245,000 100.000% 14,245,000 #201-U 52,467,420 (4) 100.000% 52,467,420

High School Districts: #206 14,930,000 100.000% 14,930,000 #210 (Lincolnway) 264,384,161 (4) 0.001% 2,644 #227 40,555,000 100.000% 40,555,000 #233 36,090,000 100.000% 36,090,000

553,297,362

Direct Debt Praire State CC # 515 9,822,040 (4) 100.000% 9,822,040

$563,119,402

*Tax year 2013 Equalized Assessed Values of Districts and tax codes were used in the calculations of percentages in this statement. Outstanding bonded debt shown is as of June 30, 2014.

(1) Includes IEPA Revolving Loan Fund Bonds(2) Excludes Taxable Debt Certificates and/or Tax Anticipation Warrants(3) Excludes Installment Contract Certificates, leases, notes, and/or purchase agreements.(4) Includes principal amounts of outstanding General Obligation Capital Appreciation Bonds.(5) Excludes principal amounts of outstanding General Obligation Alternate Revenue Source Bonds which are expected to be paid from sources other than general taxation.

and the Treasurer of the Metropolitan Water Reclamation District

(6) Includes outstanding TIF bonds_______Sources: Offices of the Cook and Will County Clerks, Cook County Comptroller

Total Direct and Overlapping General Obligation Bonded Debt

The Total 2013 Equalized Assessed Valuation of the District is $3,083,864,147 and consists of the Cook County 2013 EAV of $2,289,997,634 and the Will County 2013 EAV of $793,866,513.

Total Overlapping General Obligation Bonded Debt:

44.

Prairie State College - Community College District No. 515Debt CapacityLegal Debt Margin Information

Unaudited

Tax Year Assessed Value

Debt Limit Rate

Debt Limit (Assessed Value

X Debt Limit Rate)

Net Debt Applicable to

Debt Limit Legal Debt

Margin

Net Debt Applicable to

Debt Limit as a Percentage of

Debt Limit 2013 3,083,864,147$ 2.875% 88,661,094$ 10,875,049$ 77,786,045$ 12.27%

2012 3,333,183,305 2.875% 95,829,020 11,022,040 84,806,980 11.50%

2011 3,661,931,893 2.875% 105,280,542 12,172,040 93,108,502 11.56%

2010 4,381,883,999 2.875% 125,979,165 13,940,780 112,038,385 11.07%

2009 4,390,899,399 2.409% 105,776,767 14,427,040 91,349,727 13.64%

2008 4,410,144,660 2.430% 107,166,515 12,257,040 94,909,475 11.44%

2007 4,044,175,677 2.560% 103,530,897 13,188,575 90,342,322 12.74%

2006 3,752,874,817 2.700% 101,327,620 14,282,040 87,045,580 14.09%

2005 3,561,450,036 2.750% 97,939,876 15,227,040 82,712,836 15.55%

2004 3,113,169,392 2.970% 92,461,131 15,872,040 76,589,091 17.17%

Data Source: Prairie State Community College records, Comprehensive Annual Financial Reports, and Cook & Will County records


45.

Prairie State College - Community College District No. 515Demographic and Economic InformationPersonal Income Per Capita

Unaudited

Fiscal Year Population

Median Family Income

Total Personal Income

Per Capita Income

Unemployment Rate (4)

2014 276,183 (4) N/A N/A N/A 7.1%2013 272,405 (1) 69,481$ (1) 7,391,709,675$ 27,135$ (1) 8.5% 2012 272,405 (1) 69,481 (1) 7,391,709,675 27,135 (1) 11.1% 2011 219,171 67,227 (1) 6,093,392,142 27,802 (1) 10.2% 2010 219,171 64,973 (2) 6,239,579,199 28,469 (3) 10.9% 2009 213,978 65,587 (2) 6,166,845,960 28,820 (3) 11.5% 2008 213,978 66,450 (2) 5,886,748,758 27,511 (3) 7.2% 2007 213,978 63,204 (2) 5,673,412,692 26,514 (3) 5.7% 2006 213,978 60,387 (2) 3,620,079,804 16,918 5.0% 2005 213,978 58,773 (2) 3,529,139,154 16,493 7.2%

2014 information not available

Source:

(4) U.S. Census Bureau, 2008-2012 American Community Survey 5-Year Estimates


(1) U.S. Census Bureau, 2011 American Community Survey(2) Respective year - Survey Cook County

(3) U.S. Department of Commerce, Bureau of Economic Analysis - 2009 Per Capita Personal Income for State of Illinois

46.

2014 2013 2012 2011 2010 2009 2008 2007 2006 2005

Faculty 205 222 204 216 193 193 202 207 179 171

Administrators 28 28 34 29 26 26 32 33 35 36

Support Staff 159 155 211 175 164 164 132 154 147 143

Total 392 405 449 420 383 383 366 394 361 350

Source: Prairie State College HR Department

Prairie State College - Community College District No. 515Full Time Equivalent EmployeesLast Ten Fiscal YearsUnaudited

47.

% of % ofNo. of Total District No. of Total District

Employer Rank Employees Population Employer Rank Employees PopulationFranciscan Saint James Health 1 1,600 0.75% Ford Motor Co. Chicago Stamping Plant 1 2,300 1.07%Advocate South Suburban Hospital 2 1,200 0.56% Roadway Express, Inc. 2 1,500 0.70%Ford Motor Co. Chicago Stamping Plt 3 1,111 0.52% St. James Hospital and Health Centers 3 1,500 0.70%Panduit Corporation 4 1,000 0.47% Advocate South Suburban Hospital 4 1,400 0.65%St. James Hospital & Health 5 900 0.42% Governors State University 5 1,200 0.56%Addus Health Care 6 900 0.42% Federal Signal Corp., Signal Div 6 800 0.37%Prairie State Community College 7 702 0.33% Applied Systems, Inc. 7 600 0.28%Federal Signal Corp. 8 700 0.33% UGN, Inc. 8 550 0.26%Applied Systems 9 665 0.31% MI-Jack Products, Inc. 9 500 0.23%Ludeman Developmental Center 10 650 0.31% CFC International, Inc. 10 425 0.20%Governors State University 11 605 0.28%Carl Budding & Co 12 500 0.23%

Data sources: Data sources:2014 Illinois Manufacturers Directory 2005 Illinois Manufacturers Directory2014 Illinois Services Directory 2005 Illinois Services Directory 2013 Harris Illinois Industrial DirectoryReference USA, September 2014A-Z Databases, September 2014

2014 2005

Prairie State College - Community College District No. 515Demographic and Economic InformationPrincipal EmployersCurrent Year and Ten Years AgoUnaudited

48.

Facilities Data 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 Size of Campus (acres) 137 137 137 137 129 126 126 126 126 126 Square Footage Available 483,546 483,546 483,546 483,546 481,386 470,854 470,854 470,854 470,854 470,854 Number of Classrooms 76 76 76 76 76 76 76 76 76 76 Number of Laboratories 26 26 26 26 29 29 29 29 29 29

Data Source: College Records

Prairie State College - Community College District No. 515Capital Asset StatisticsLast Ten Fiscal YearsUnaudited

49.

Prairie State College - Community College District No. 515 Schedule 1

All Fund Summary Uniform Financial Statement #1, Fiscal Year 2014

District No: 515Name: Prairie State College

Education Fund

Operations and

Maintenance Fund

Operations and

Maintenance Fund

(Restricted)

Bond and Interest Fund

Auxiliary Enterprises

Fund

Restricted Purposes

Fund

Working Cash Fund

Audit Fund

Liability, Protection Settlement

Fund

Total

Fund Balance July 1, 2013 2,926,793$ 821,616$ 3,544,673$ 579,105$ 633,728$ (1,052,085)$ 6,221,748$ (286,594)$ 455,921$ 13,844,905$

Revenues:

Local Tax Revenue 9,091,118 3,305,203 - 1,613,154 - - - 128,262 59,401 14,197,138

ICCB Grants 2,419,422 368,319 - - - 494,869 - - - 3,282,610

Local Government Revenue 412,797 67,199 - - - - - - - 479,996

All Other State Revenue 9,728 - 807,552 - 121,235 1,655,841 - - - 2,594,356

Federal Revenue (106) - - - 17,036 11,776,875 - - - 11,793,805

Student Tuition and Fees 13,171,574 436,539 - - 1,808,497 - - - - 15,416,610

All Other Revenue 527,165 3,642 223 - 860,984 6,909,017 - - 6,909 8,307,940

Total Revenue 25,631,698 4,180,902 807,775 1,613,154 2,807,752 20,836,602 - 128,262 66,310 56,072,455

Expenditures

Instruction 11,146,137 - - - - 1,174,531 - - - 12,320,668

Academic Support 1,397,975 - - - 11,079 6,091 - - - 1,415,145

Student Services 3,317,485 - - - - 933,598 - - - 4,251,083

Public Service/Continuing Education 186,304 - - - 340,730 576,440 - - - 1,103,474

Auxiliary Services 243 - - - 2,280,018 - - - - 2,280,261

Operations and Maintenance 953,826 2,903,666 - - - - - - 338 3,857,830

Institutional Support 6,963,815 219,798 957,977 866 - 7,491,345 - 257,153 74,452 15,965,406

Scholarships, Grants, Waivers - - - - - 11,217,246 - - - 11,217,246

Debt Service - - - 1,672,485 - - - - - 1,672,485

Total Expenditures 23,965,785 3,123,464 957,977 1,673,351 2,631,827 21,399,251 - 257,153 74,790 54,083,598

Fund Balance June 30, 2014 4,592,706$ 1,879,054$ 3,394,471$ 518,908$ 809,653$ (1,614,734)$ 6,221,748$ (415,485)$ 447,441$ 15,833,762$

50.

Prairie State College - Community College District No. 515 Schedule 2

Summary of Fixed Assets and DebtUniform Financial Statement #2, Fiscal Year 2014

District No: 515

Name: Prairie State College

Balance July 1, 2013

Additions Deletions Balance

June 30, 2014

Fixed Assets

Sites and Improvements 4,665,783$ -$ -$ 4,665,783$

Buildings, Additions, and Improvements 43,222,868 - - 43,222,868

Equipment 9,874,027 216,449 (78,908) 10,011,568

Leases 365,546 73,254 - 438,800

Construction in Progress 474,964 838,197 - 1,313,161

Accumulated Depreciation (28,082,035) (1,495,028) 78,906 (29,498,157)

Net Fixed Assets 30,521,153$ (367,128)$ (2)$ 30,154,023$

Fixed Debt

Bonds Payable 11,957,727$ 135,648$ (1,200,041)$ 10,893,334$

Capital leases payable 242,999 73,254 (67,608) 248,645

Other Fixed Liabilities 900,235 - (145,461) 754,774

Total Fixed Liabilities 13,100,961$ 208,902$ (1,413,110)$ 11,896,753$

51.

Prairie State College - Community College District No. 515 Schedule 3Operating Funds Revenues And ExpendituresUniform Financial Statement #3, Fiscal Year 2014


Education Fund Operations and

Maintenance Fund

Total Operating Funds

OPERATING REVENUES BY SOURCE

Local Government Revenue:Local Taxes 9,091,118$ 3,305,203$ 12,396,321$ CPPRT 412,797 67,199 479,996 TOTAL LOCAL GOVERNMENT 9,503,915 3,372,402 12,876,317

State Government:ICCB Base Operating Grant 2,184,517 355,619 2,540,136 ICCB Equalization Grant 78,017 12,700 90,717 ISBE Vocational Education 156,888 - 156,888 Other State Revenue 9,728 - 9,728 TOTAL STATE GOVERNMENT 2,429,150 368,319 2,797,469

Student Tuition and FeesTuition 12,465,559 - 12,465,559 Fees 706,015 436,539 1,142,554 TOTAL TUITION AND FEES 13,171,574 436,539 13,608,113

Other SourcesFederal - Student Veteran Center (106) - (106) Sales and Service Fees 42,218 - 42,218 Investment Revenue 68,371 - 68,371 Other 416,576 3,642 420,218 TOTAL OTHER REVENUE 527,059 3,642 530,701

TOTAL REVENUE 25,631,698$ 4,180,902$ 29,812,600$

OPERATING EXPENDITURES

BY PROGRAMInstruction 11,146,137$ -$ 11,146,137$ Academic Support 1,397,975 - 1,397,975 Student Services 3,317,485 - 3,317,485 Public Service/Continuing Education 186,304 - 186,304 Auxiliary Services 243 - 243 Operations and Maintenance 953,826 2,903,666 3,857,492 Institutional Support 6,963,815 219,798 7,183,613

TOTAL EXPENDITURES 23,965,785$ 3,123,464$ 27,089,249$

BY OBJECTSalaries 17,671,859$ 697,988$ 18,369,847$ Employee Benefits 2,706,287 120,626 2,826,913 Contractual Services 1,145,568 1,024,994 2,170,562 General Materials and Supplies 978,361 166,914 1,145,275 Conference and Meeting Expenses 207,014 56,015 263,029 Fixed Charges 211,323 81,714 293,037 Utilities - 826,995 826,995 Capital Outlay 15,532 148,218 163,750 Other 1,029,841 - 1,029,841

TOTAL EXPENDITURES 23,965,785$ 3,123,464$ 27,089,249$

52.

Prairie State College - Community College District No. 515 Schedule 4Restricted Purposes Fund Revenues And ExpendituresUniform Financial Statement #4, Fiscal Year 2014


RestrictedPurposes

FundREVENUE BY SOURCE:

State GovernmentICCB - Adult Education and Family Literacy Grant 349,776$ ICCB - Workforce Development Business/Industry Grant 73,515ICCB - Program Improvement Grant 11,578Other 1,715,841

TOTAL STATE GOVERNMENT 2,150,710

Federal GovernmentDept. of Education 9,554,263Dept. of Labor 428,661Other 1,793,951

TOTAL FEDERAL GOVERNMENT 11,776,875

Other Sources 6,909,017

TOTAL RESTRICTED PURPOSES FUND REVENUES 20,836,602$

EXPENDITURES BY PROGRAM

Instruction 1,174,531$ Academic Support 6,091 Student Services 933,598 Public Service/Continuing Education 576,440 Institutional Support 7,491,345 Scholarships, Grants and Waivers 11,217,246

TOTAL RESTRICTED PURPOSES FUND EXPENDITURES 21,399,251$

EXPENDITURES BY OBJECT

Salaries 1,793,324$ Employee Benefits 7,206,015 Contractual Services 242,868 General Materials and Supplies 146,448 Travel & Conference//Meeting Expenses 114,894 Capital Outlay 115,694 Financial Aid 11,780,008

TOTAL RESTRICTED PURPOSES FUND EXPENDITURES 21,399,251$

53.

Prairie State College - Community College District No. 515 Schedule 5Current Funds * Expenditure By ActivityUniform Financial Statement #5, Fiscal Year 2014


INSTRUCTION

Instructional Programs 12,320,668$

ACADEMIC SUPPORT

Library Center 759,074Educational Media Services 87,772Other 568,299Total Academic Support 1,415,145

STUDENT SERVICES SUPPORT

Admissions and Records 463,175Counseling and Career Services 1,247,745Financial Aid Administration 1,133,999Other 1,406,164Total Student Services Support 4,251,083

PUBLIC SERVICE/CONTINUING EDUCATION

Customized Training (Instructional) 311,856Community Services 791,618Total Public Service/Continuing Education 1,103,474

AUXILIARY SERVICES 2,280,261

OPERATIONS AND MAINTENANCE OF PLANT

Maintenance 547,256Custodial Services 773,459Grounds 376,195Campus Security 954,164Utilities 826,995Other 379,761Total Operations and Maintenance of Plant 3,857,830

INSTITUTIONAL SUPPORT

Executive Management 867,957Fiscal Operations 1,664,053Community Relations 45,072Administrative Support Services 635,611Board of Trustees 60,592General Institution 236,649Institutional Research 173,558Administrative Data Processing 1,895,736Other 9,427,335Total Institutional Support 15,006,563

SCHOLARSHIPS, STUDENTS GRANTS, & WAIVERS 11,217,246

TOTAL CURRENT FUNDS EXPENDITURES 51,452,270$

HansonPollHA

Typewritten Text

54.

HansonPollHA

Typewritten Text

Schedule 6


55.

INDEPENDENT ACCOUNTANT’S REPORT ON THE SCHEDULE OF ENROLLMENT DATA AND OTHER BASES UPON WHICH CLAIMS ARE FILED

The Board of Trustees Prairie State College Community College District No. 515 We have examined the accompanying Schedule of Enrollment Data and Other Bases Upon Which Claims Are Filed, of Prairie State College, Community College District No. 515 (the College) for the year ended June 30, 2014. The Schedule of Enrollment Data and Other Bases Upon Which Claims Are Filed is the responsibility of the College’s management. Our responsibility is to express an opinion on the schedule based upon our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants, in accordance with the guidelines of the Illinois Community College Board’s Fiscal Management Manual and accordingly, included examining, on a test basis, evidence supporting the Schedule of Enrollment Data and Other Bases Upon Which Claims Are Filed and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. In our opinion, the accompanying Schedule of Enrollment Data and Other Bases Upon Which Claims Are Filed, in all material respects, is fairly presented in accordance with the provisions of the aforementioned guidelines for the year ended June 30, 2014. The supplementary information on pages 58 and 59 discusses the College’s residency policy and provides a summary of assessed valuations and is the responsibility of the College’s management. This information has not been subjected to the examination procedures applied in the examination of the Schedule of Enrollment Data and Other Bases Upon Which Claims Are Filed and accordingly, we do not express an opinion or provide any assurance on them. This report is intended solely for the information and use of the Board of Trustees, management, and the Illinois Community College Board and is not intended to be and should not be used by anyone other than these specified parties. Crowe Horwath LLP Oak Brook, Illinois October 15, 2014

57.

Total Unrestricted Total Restricted

Unrestricted Credit Hours Total Credit Hours

Credit Certified to the Restricted Credit Certified to the

Categories Hours ICCB Differences Hours ICCB Differences

Baccalaureate 65,943.8 65,943.8 - - - -

Business Occupational 4,160.5 4,160.5 - - - -

Technical Occupational 7,370.0 7,370.0 - - - -

Health Occupational 7,627.0 7,627.0 - - - -

Remedial Development 12,208.0 12,208.0 - - - -

Adult Basic/Secondary education 1,304.8 1,304.8 - 2,931.5 2,931.5 -

TOTAL 98,614.1 98,614.1 - 2,931.5 2,931.5 -

Total Attending as

Total Attending Certified To the ICCB

(Unrestricted and Restricted) (Unrestricted and Restricted) Difference

In District Residents 86,940.3 86,940.3 -

Out-of-District on Charge Back or

Contractual Agreement 2,041.0 2,041.0 -

Total 88,981.3 88,981.3 -

Total Correctional Credit

Total Correctional Hours Certified

Categories Credit Hours to the ICCB Difference

Baccalaureate - - -

Business Occupational - - -

Technical Occupational - - -

Health Occupational - - -

Remedial Development - - -

Adult Basic/Secondary education - - -

TOTAL - - -

Prairie State College - Community College District No. 515

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

Year Ended June 30, 2014

Reconciliation of In-District/Chargeback and Cooperative/Contractual Agreement Credit Hours

Reconciliation of Total Correctional Semester Credit Hours

PRAIRIE STATE COLLEGE – COMMUNITY COLLEGE DISTRICT NO. 515 RESIDENCY REQUIREMENTS


Board Policy F-19 (Student Residency Status) establishes Prairie State College — Community College District No. 515 (College) residency requirements. Students enrolling at the College are classified as Resident, Non-Resident, Out-of-District, or Out-of-State for purpose of tuition and fees. The Admissions and Enrollment Office shall make the final determination of residency status for tuition purposes. At the time of application and registration, students are required to sign a statement verifying their residence. The College verifies residency when a student changes from an in-district address to an out-of-district or out-of-state address, or from an out-of-district or out-of-state to an in-district address. Should a student change from one in-district address to another in-district address, documentation is not necessary. Verification occurs when a student requests a change of address or when a student’s mail is returned to the College due to an invalid address. Resident A student who has resided within Illinois and the College for 30 days immediately prior to the start of the term is eligible to be classified as a resident student for tuition calculation purposes. Communities that comprise District 515 include:

• Beecher, Chicago Heights, Crete, Flossmoor, Ford Heights, Glenwood, Homewood, Matteson, Monee, Olympia Fields, Park Forest, Richton Park, Sauk Village, South Chicago Heights, Steger, and University Park.

Portions of these communities are included in District 515:

• Country Club Hills, Hazel Crest, Lynwood, Tinley Park and adjacent unincorporated areas of Cook and Will counties.

Out-of-District A student who resides in Illinois, but outside the College, for 30 days immediately prior to the start of the term shall be classified as an out-of-district student. A change in residency status may be requested by providing the appropriate documentation to the Admissions and Enrollment Office. Out-of-State A student who resides in Illinois less than 30 days immediately prior to the start of the term shall be classified as an out-of-state student. International A student who is attending the College on a visa and whose permanent residence is outside of the United States shall be classified as an out-of-state student for tuition purposes, unless the student is a live-in guest with a resident of the College.

58.

59.

Tax Levy Year Equalized Assessed Valuation 2013 3,083,864,147$ 2012 3,333,183,305 2011 3,661,931,893 2010 4,381,883,999 2009 4,390,899,399 2008 4,410,144,660 2007 4,044,175,677 2006 3,752,874,817 2005 3,561,450,036 2004 3,113,169,392

Prairie State College - Community College District No. 515Summary of Assessed Valuations

Year Ended June 30, 2014


60.

INDEPENDENT AUDITOR’S REPORT The Board of Trustees Prairie State College Community College District No. 515 Chicago Heights, Illinois Report on the Financial Statements We have audited the accompanying financial statements of the Prairie State College, Community College District No. 515 (the College) Career and Technical Education – Program Improvement Grant and State Adult Education and Family Literacy Grant (State Basic, Public Assistance, and Performance) (Grant Programs), and the related notes to the financial statements, as of June 30, 2014 and for the year then ended, which collectively comprise the Grant Programs’ basic financial statements. 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 conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States and the guidelines of the Illinois Community College Board Fiscal Management Manual. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit 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. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

61.

Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the College’s Grant Programs as of June 30, 2014, and the respective changes in its financial position for the year then ended in conformity with accounting principles generally accepted in the United States of America. Emphasis of Matter As described in Note 1, the financial statements present only the Grant Programs, and do not purport to, and do not, present fairly the financial position of the College as of June 30, 2014, and the changes in its financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinions are not modified with respect to this matter. Other Matters Supplementary information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Grant Programs’ basic financial statements. The supplementary information on page 66 is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplementary information on page 66 is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information on page 66 is fairly stated, in all material respects, in relation to the basic financial statements as a whole. Report on Other Legal and Regulatory Requirements In accordance with Government Auditing Standards, we have also issued our report dated October 15, 2014 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 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. Crowe Horwath LLP Oak Brook, Illinois October 15, 2014

ASSETSPrepaid assets 578$

TOTAL ASSETS 578$

FUND BALANCE - NONSPENDABLE 578$

Prairie State College - Community College District No. 515Career and Technical Education - Program Improvement Grant

Balance SheetJune 30, 2014

_____________________________________________________________________________

See accompanying notes to ICCB State Grants financial statements 62.

REVENUES 11,578$

EXPENDITURESSalaries 3,000 Contractual services 8,000

11,000

EXCESS OF REVENUES OVER EXPENDITURES 578

FUND BALANCE, BEGINNING OF YEAR -

FUND BALANCE, END OF YEAR 578$

Prairie State College - Community College District No. 515Career and Technical Education - Program Improvement Grant

Statement of Revenues, Expenditures and Changes in Fund BalanceYear ended June 30, 2014

_____________________________________________________________________________


State Basic Public

Assistance Performance

Total (Memorandum

only) ASSETS

Accounts receivable 15,915$ 5,030$ 8,203$ 29,148$ TOTAL ASSETS 15,915$ 5,030$ 8,203$ 29,148$

LIABILITIESDue to other funds 15,915$ 5,030$ 8,203$ 29,148$

TOTAL LIABILITIES 15,915 5,030 8,203 29,148

FUND BALANCE - - - -

TOTAL LIABILITIES AND FUND BALANCE 15,915$ 5,030$ 8,203$ 29,148$

Prairie State College - Community College District No. 515State Adult Education and Family Literacy Grant

Balance SheetJune 30, 2014

__________________________________________________________________________________________________________________________


State Basic Public

Assistance Performance

Total (Memorandum

only)

REVENUES 190,981$ 60,359$ 98,436$ 349,776$

EXPENDITURESInstruction 151,832 43,279 250 195,361

Social work services - - 44,069 44,069 Guidance services 24,477 12,744 44,242 81,463 Assessment and testing - - 8,263 8,263

Subtotal instructional and student services 176,309 56,023 96,824 329,156

Improvement of instruction services 14,672 - - 14,672 General administration - 4,336 1,612 5,948 Datat and information services - - - -

Subtotal program support 14,672 4,336 1,612 20,620

Total expenditures 190,981 60,359 98,436 349,776

EXCESS OF REVENUES OVER EXPENDITURES - - - -

FUND BALANCE, BEGINNING OF YEAR - - - -

FUND BALANCE, END OF YEAR -$ -$ -$ -$

Prairie State College - Community College District No. 515State Adult Education and Family Literacy Grant

Statement of Revenues, Expenditures, and Changes in Fund BalancesYear ended June 30, 2014

__________________________________________________________________________________________________________________________


State BasicInstruction (45% minimum required)General administration (15% maximum allowed)

State Public AssistanceInstruction (45% minimum required)General administration (15% maximum allowed)

Prairie State College - Community College District No. 515ICCB Compliance Statement for State Adult Education and Family Literacy Grant

Expenditure Amounts and Percentages for ICCB Grant Funds OnlyFor the Year Ended June 30, 2014

Audited Expenditure Amount Audited Expenditure

Percentage

151,832$ -

43,279 4,336

79.50%0.00%

71.70%7.18%

__________________________________________________________________________________________________________________________


PRAIRIE STATE COLLEGE - COMMUNITY COLLEGE DISTRICT NO. 515 NOTES TO ICCB STATE GRANTS FINANCIAL STATEMENTS


67.

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES General: The accompanying statements include only those transactions resulting from the Illinois Community College Board (ICCB):

Career and Technical Education - Program Improvement Grant Program State Adult Education and Family Literacy Grant programs

These transactions have been accounted for in the Restricted Purpose Fund. Basis of Accounting: The statements have been prepared on the modified accrual basis of accounting. Expenditures include all accounts payable, representing liabilities for goods and services actually received as of June 30, 2014. Funds obligated for goods prior to June 30 for which the goods are received prior to August 31 are recorded as encumbrances. Unexpended funds are reflected as a reduction to fund balance and a liability due to the ICCB by October 15. Prepaid items are considered to be nonspendable fund balance as the resources have been committed for future use. Capital Assets: Capital assets purchased are recorded as capital outlay and not capitalized. NOTE 2 - DESCRIPTIONS OF PROGRAMS The following grants were received from the ICCB and are administered by Prairie State College - Community College District No. 515: Career and Technical Education - Program Improvement Grant Program: Grant funding recognizes that keeping career and technical programs current and reflective of the highest quality practices in the workplace is necessary to prepare students to be successful in their chosen careers and to provide employers with the well-trained workforce they require. The grant funds are dedicated to enhancing instruction and academic support activities to strengthen and improve career and technical programs and services. State Adult Education and Family Literacy Grant Programs: State Basic: Grant awarded to adult education and family literacy providers to establish special classes for the instruction of persons of age 21 and over or persons under the age of 21 and not otherwise in attendance in public school for the purpose of providing education to adults in the community, and other instruction as may be necessary to increase their qualifications for employment or other means of self-support and their ability to meet their responsibilities as citizens, including courses of instruction regularly accepted for graduation from elementary or high schools and for Americanization and General Education Development Review classes. Included in this grant are funds for support services, such as student transportation and child care facilities or provision. Public Assistance: Grant awarded to adult education and family literacy providers to pay for instruction, fees, books and materials incurred in the program for students who are identified as recipients of public assistance.

Performance: Grant awarded to adult education and family literacy providers based on performance outcomes.


68.

INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF GRANT PROGRAM FINANCIAL

STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS The Board of Trustees Prairie State College Community College District No. 515 Chicago Heights, Illinois We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States and the guidelines of the Illinois Community College Board Fiscal Management Manual, the financial statements of Prairie State College, Community College District No. 515 (the College) Career and Technical Education – Program Improvement Grant and State Adult Education and Family Literacy Grant (State Basic, Public Assistance, and Performance) (Grant Programs) as of and for the year ended June 30, 2014, and the related notes to the financial statements, which collectively comprise the Grant Programs’ basic financial statements, and have issued our report thereon dated October 15, 2014. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the College's internal control over financial reporting (internal control) of the Grant Programs to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the College’s internal control. Accordingly, we do not express an opinion on the effectiveness of the College’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the Grant Programs’ financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency or a combination of deficiencies in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph in this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

69.

Compliance and Other Matters As part of obtaining reasonable assurance about whether these financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report This purpose of this report is solely 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 effectiveness of the College’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the College’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Crowe Horwath LLP Oak Brook, Illinois October 15, 2014

Documents

COMPREHENSIVE ANNUAL FINANCIAL REPORTprairiestate.edu/Assets/Global/bus/audits/2014CAFRinfrpt.pdf · COMPREHENSIVE ANNUAL FINANCIAL REPORT June 30 ... Notes to Financial ... Assessed