REGIONAL OFFICE OF EDUCATION #1 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2009 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)_part2 ppt

REGIONAL OFFICE OF EDUCA nON #1 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2009 Note 13 - TEACHERS' RETIREMENT SYSTEM OF THE STATE OF ILLINOIS Continued The Regional Office of Education #

REGIONAL OFFICE OF EDUCA nON #1 NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2009

Note 13 - TEACHERS' RETIREMENT SYSTEM OF THE STATE OF ILLINOIS (Continued)

The Regional Office of Education #1 makes other types of employer contributions directly to TRS

formula change This rate is specified by statute Contributions for the year ended June 30,

2009 were $527 Contributions for the years ending June 30, 2008, and June 30, 2007, were

$347 and $342, respectively

trust funds administered by the Regional Office of Education #1, there is a statutory requirement for the Regional Office of Education #1 to pay an employer pension contribution from those funds Under a policy adopted by the TRS Board of Trustees that was first effective in the fiscal year ended June 30, 2009, employer contributions for employees paid from federal and trust funds will be the same as the state contribution rate ofTRS

For the year ended June 30, 2009, the employer pension contribution was 17.08 percent of salaries paid from federal and trust funds For the year ended June 30, 2008, the employer contribution was 13 11 percent of salaries paid from federal and trust funds For the year ended June 30, 2007, the employer pension contribution was 9.78 percent of salaries paid from those funds For the year ended June 30, 2009 salaries totaling $46,762 were paid from federal and trust funds that required employer contributions of $7,987 For the years ended June 30, 2008 and June 30, 2007, required contributions were $2,983 and $2,131, respectively

make one-time employer contributions to TRS for members retired under the Early Retirement Option (ERO) The payments vary depending on the age and salary of the member and under which ERO program the member retires

Under Public Act 94-0004, a "Pipeline ERO" program is provided for members to retire under the same terms as the ERO program that expired June 30, 2005, provided they meet certain conditions and retire on or before July 1, 2007 If members do not meet those conditions, they can retire under the "Modified ERO" program, which requires higher member and employer contributions to TRS Also, under Modified ERO, Public Act 94-0004 eliminates the waiver of member and employer ERO contributions that had been in effect for members with 34 years of services (unless the member qualifies for Pipleline ERO)

Under the ERO program that expired on June 30, 2005 and the Pipleline ERO, the maximum employer contribution is 100 percent of the member's highest salary used in the final average salary calculation

Under the Modified ERO, the maximum employer contribution is 117.5 percent Both the 100 percent and 117.5 percent maximum apply when the member is age 55 at retirement For the three years ended June 30, 2009, the Regional Office of Education #1 paid no employer

contributions under the Early Retirement Option

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REGIONAL OFFICE OF EDUCATION #1 NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2009

Note 13 - TEACHERS' RETIREMENT SYSTEM OF THE STATE OF ILLINOIS (Continued)

employer contributions to TRS

If the employer grants salary increases over 6 percent and those salaries are used to calculate a retiree's final average salary, the employer makes a contribution to TRS The contribution will cover the difference in actuarial cost of the benefit based on actual salary increases and the benefit based on salary increases of up to 6 percent

For the three years ended June 30, 2009, the Regional Office of Education #1 paid no employer contributions under salary increases over 6 percent

If an employer grants sick leave days in excess of normal annual allotment and those days are used as TRS service credit, the employer makes a contribution to TRS The contribution is based on the number of excess sick leave days used as service credit, the highest salary used to calculate final average salary, and the TRS total normal cost rate (18.67 percent of salary during the year ended June 30, 2009)

For the three years ended June 30, 2009, the Regional Office of Education #1 paid no employer contributions under excess sick leave

TRS financial information, an explanation ofTRS benefits, and descriptions of members, employer and state funding requirements can be found in the TRS Comprehensive Annual Financial Report for the year ended June 30, 2008 The report for the year ended June 30, 2009, is expected to be

available in late 2009 The reports may be obtained in writing to the Teacher's Retirement System

of the State of Illinois, PO Box 19253,2815 West Washington Street, Springfield, Illinois

62794-9253 The most current report is also available on the TRS web site at www.trs.illinois.gov

Note 14 - NEW ACCOUNTING PRONOUNCEMENT

Effective for the year ending June 30, 2009, the Regional Office of Education #1 adopted the

following GASB Statements:

a) GASB Statement No 49, Accounting and Financial Reportingfor Pollution Remediation Obligations

b) GASB Statement No 52, Land and Other Real Estate Held as Investments by Endowments

c) GASB Statement No.5 5, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments

d) GASB Statement No 56, Codification of Accounting and Financial Reporting Guidance Contained in the AICPA Statements on Auditing Standards

There was no significant impact on the Regional Office of Education # 1 's financial statements as a result of adopting statements 49, 52, 55 and 56

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Required Supplemental Information

(Other than Management's Discussion & Analysis)

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Actuarial

Valuation

Date

12/3112008

12/3112007

12/31/2006

Actuarial

REGIONAL OFFICE OF EDUCATION #1 REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF FUNDING PROGRESS Illinois Municipal Retirement Fund

40

UAAL as a Percentage of Covered Payroll [(B-A)!C]

19.44% 0% 0%

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SUPPLEMENTAL INFORMATION

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Regional

624 230 854 854 854 854

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School

Education Grants

4,960 (9,986)

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Regional

767 581

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School

Communication Postage

310,018 148,667

288,591 99,897 24,164

(15,557) (9,986)

45,831 45,000 45,000

831 819

10,199 1,074 10,647

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BUDGETARY COMPARlSON SCHEDULE EDUCATION FUND ACCOUNTS FOR THE YEAR ENDED JUNE 30, 2009

Variance Positive

Revenues:

Federal sources

Interest income

Expenditures:

Institute expenses and workshops

Capital outlay

Postage and copies

Payment to other governmental units

Other

Fund halance, July 1, 2008

Re!;;ional Otlice of Prevention Etfectiveness Services

Revenues:

Interest income

Expenditures:

Institute expenses and workshops

Capital outlay

Communication

Postage and copies

Payment to other governmental units

Other

Total expenditures

Net change in fund balances

Fund balance, July 1, 2008

Fund balance, June 30, 2009

114,929

$

$

See accompanying Independent Auditor's Report

45

17,674 92,864 24,518 135,056

84,068 7,864 19,261 5,934

4,378

162 121,667 13,389 (16,068) (2,679)

Variance Positive

~Ne!;;ative)

2,453

20,127

(4,534)

797

983

556

(4,378)

~162)

~6,738)

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