Common use of Required Supplementary Information Clause in Contracts

Required Supplementary Information. Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the QSA JPA’s basic financial statements. The Budget Status Report Expenditures is presented for purposes of additional analysis and is not a required part of the basic financial statements. The Budget Status Report Expenditures 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 Budget Status Report Expenditures is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Required Supplementary Information. Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the QSA JPA’s basic financial statements. The Budget Status Report Expenditures budget status report is presented for purposes of additional analysis and is not a required part of the basic financial statements. The Budget Status Report Expenditures budget status report 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 Budget Status Report Expenditures budget status report is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Required Supplementary Information. Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis budgetary comparison schedule on page 14 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Management has omitted the management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinions on the basic financial statements are not affected by this missing information. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the QSA JPAJoint Agreement’s basic financial statements. The Budget Status Report Expenditures supplementary information, as listed in the table of contents, is presented for purposes of additional analysis and is not a required part of the basic financial statements. The Budget Status Report Expenditures supplementary information, as listed in the table of contents, 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 Budget Status Report Expenditures supplementary information, as listed in the table of contents, is fairly stated, in all material respects, in relation to the basic financial statements as a whole. Xxxxx Xxxxxxx LLP Oak Brook, Illinois November 15, 2017 HOPE WALL SPECIAL EDUCATION JOINT AGREEMENT Statement of Net Position June 30, 2017 Governmental Activities ASSETS Due from districts $ 4,359,949 Total assets 4,359,949 LIABILITIES AND NET POSITION Liabilities Cash overdraft 3,327,704 Accounts payable 12,407 Salary and wages payable 659,965 Total liabilities 4,000,076 Net position, unrestricted $ 359,873 HOPE WALL SPECIAL EDUCATION JOINT AGREEMENT Statement of Activities Year Ended June 30, 2017 Net (Expense) Revenue and Program Revenues Changes in Operating Grants, Net Position Contributions and Charges for Related Interest Governmental Functions/Programs Expenses Services Income Activities Governmental activities: Instruction Special programs $ 4,731,769 $ 6,972,098 $ 696,123 $ 2,936,452 Other instructional programs 71,265 - - (71,265) Support services Pupils 1,797,773 - - (1,797,773) Instructional staff 5,666 - - (5,666) School administration 1,709 - - (1,709) Business 995,543 - - (995,543) Central 3,356 - - (3,356) Community services 1,406 - - (1,406) Total governmental activities $ 7,608,487 $ 6,972,098 $ 696,123 59,734 General revenues: Other general revenues - Total general revenues - Change in net position 59,734 Net position July 1, 2016 300,139 Net position June 30, 2017 $ 359,873 HOPE WALL SPECIAL EDUCATION JOINT AGREEMENT Govermental Funds Balance Sheet June 30, 2017 Major Funds Total ASSETS Due from other funds $ 532,097 $ $ 532,097 Due from districts 4,359,949 - 4,359,949 Total assets $ 4,892,046 $ - $ 4,892,046 General Fund IMRF / Soc Sec Fund Governmental Funds - LIABILITIES, DEFERRED INFLOWS AND FUND BALANCE Liabilities Cash overdraft $ 3,327,704 $ - $ 3,327,704 Accounts payable 12,407 - 12,407 Xxxxxx and wages payable 659,965 - 659,965 Due to other funds - 532,097 532,097 Total liabilities 4,000,076 532,097 4,532,173 Deferred Inflows Unavailable grant revenue 326,013 - 326,013 Fund balance Unassigned 565,957 (532,097) 33,860 Total liabilities, deferred inflows and fund balance $ 4,892,046 $ - $ 4,892,046 HOPE WALL SPECIAL EDUCATION JOINT AGREEMENT Reconciliation of Governmental Funds Balance Sheet To Statement of Net Position June 30, 2017 Total Fund Balances - Governmental Funds $ 33,860 Amounts reported for governmental activities in the statement of net position are different because: Some of the revenues will be collected after year-end but are not available soon enough to pay for the current period's expenditures and therefore are unavailable in the funds: Revenues unavailable in funds 326,013 Net Position of Governmental Activities $ 359,873 HOPE WALL SPECIAL EDUCATION JOINT AGREEMENT Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds Year Ended June 30, 2017 Major Funds Total General Fund IMRF / Soc Sec Fund Governmental Funds Revenues Local sources $ 5,940,113 $ 1,000,000 $ 6,940,113 State sources 533,633 - 533,633 Federal sources 163,878 - 163,878 Total revenues 6,637,624 1,000,000 7,637,624 Expenditures Instruction 4,624,868 178,166 4,803,034 Support services 2,781,507 22,540 2,804,047 Community services 1,400 6 1,406 Total expenditures 7,407,775 200,712 7,608,487 Net change in fund balance (770,151) 799,288 29,137 Fund balance at beginning of year 1,336,108 (1,331,385) 4,723 Fund balance at end of year $ 565,957 $ (532,097) $ 33,860 HOPE WALL SPECIAL EDUCATION JOINT AGREEMENT Reconciliation of Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to Statement of Activities Year Ended June 30, 2017 Net Change in Total Fund Balances $ 29,137 Amounts reported for governmental activities in the Statement of Activities are different because: Some revenues were not collected for several months after the close of the fiscal year and therefore were not considered to be "available" and are not reported as revenue in the governmental funds. 30,597 Change in Net Position of Governmental Activities $ 59,734 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Reporting Entity: The Hope Wall Special Education Joint Agreement (the Joint Agreement) provides certain special education services to residents of East Aurora Community Unit School District 131 and West Aurora Community Unit School District 129. Each District owns one-half of the land and one-half of all real property where the services take place. West Aurora Community Unit School District 129 serves as the administrative district for all components of the Joint Agreement. The operating and capital costs of the building are shared equally (50%) between the districts and the program costs are allocated between the two districts based on the average daily enrollment. The Joint Agreement is governed by an advisory board made up of representatives from each of the two districts and is not a component unit of any other government nor does it report any other entity as a component unit.

Required Supplementary Information. Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis and the Required Supplementary Information as listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board (GASB) who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, 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 principally 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, statements and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions an opinion on the financial basic financials statements that collectively comprise of the QSA JPA’s basic financial statementsAuthority. The Budget Status Report Expenditures Supplementary Information, as listed in the table of contents, is presented for purposes of additional analysis and is not a required part of the basic financial statements. The Budget Status Report Expenditures Such information 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 Budget Status Report Expenditures Supplementary Information as listed in the table of contents is fairly stated, stated in all material respects, respects in relation to the basic financial statements as a whole.