Comprehensive AnnualFinancial Report

Fiscal Year EndedJune 30, 2012

Community CollegeDistrict Number 524Palos Hills, IL

MORAINE VALLEY COMMUNITY COLLEGE COMMUNITY COLLEGE DISTRICT NUMBER 524

PALOS HILLS, ILLINOIS

10/08/2011

COMPREHENSIVE ANNUAL FINANCIAL REPORT

FISCAL YEAR ENDED JUNE 30, 2012

Prepared by:

Division of Finance

Robert J. Sterkowitz Chief Financial Officer / Treasurer

Theresa O’Carroll

Controller

William Corrello Internal Auditor

MORAINE VALLEY COMMUNITY COLLEGE COMMUNITY COLLEGE DISTRICT NUMBER 524

Palos Hills, Illinois

COMPREHENSIVE ANNUAL FINANCIAL REPORT June 30, 2012

TABLE OF CONTENTS

PAGE INTRODUCTORY SECTION (UNAUDITED)

Transmittal Letter ..................................................................................... i Principal Officials ..................................................................................... xx Organization Chart ................................................................................... xxi Certificate of Achievement for Excellence in Financial Reporting (GFOA) xxii Certificate of Excellence in Financial Reporting (ASBO) ........................ xxiii

FINANCIAL SECTION Independent Auditors’ Report .................................................................. 1 Management Discussion and Analysis .................................................... 3 BASIC FINANCIAL STATEMENTS: Statement of Net Assets ........................................................................ STATEMENT 1 15 Statement of Revenues, Expenses, and Changes in Net Assets ......... STATEMENT 2 16 Statement of Cash Flows ..................................................................... STATEMENT 3 17 Notes to Basic Financial Statements ..................................................... 19 SUPPLEMENTARY INFORMATION: Schedule of Management Information – Detail of Operating Expenses By Function and Object ......................................................................... EXHIBIT 1 43 Schedule of Expenditures for Tort Immunity Purposes ........................ EXHIBIT 2 44

STATISTICAL SECTION (UNAUDITED) Net Assets by Component ....................................................................... TABLE 1 45 Changes in Net Assets ............................................................................ TABLE 2 47 Assessed Value and Actual Value of Taxable Property ......................... TABLE 3 49 Property Tax Levies and Collections ....................................................... TABLE 4 51

MORAINE VALLEY COMMUNITY COLLEGE COMMUNITY COLLEGE DISTRICT NUMBER 524

Palos Hills, Illinois

COMPREHENSIVE ANNUAL FINANCIAL REPORT June 30, 2012

TABLE OF CONTENTS

PAGE Assessed Valuations, Taxes Extended and Tax Rates .......................... TABLE 5 52 Property Tax Rates-Direct and Overlapping Governments .................... TABLE 6 54 Principal Property Taxpayers .................................................................. TABLE 7 56 Enrollment, Tuition, and Fee Rates, Credit Hours, and Fee Revenues Generated .............................................................................................. TABLE 8 58 Ratio of Net General Bonded Debt to Assessed Value and Personal Income and Net General Obligation Bonded Debt per Capita .............. TABLE 9 60 Schedule of Ratios of Outstanding Debt ................................................ TABLE 10 61 Computation of Direct and Overlapping Debt ......................................... TABLE 11 63 Legal Debt Margin Information ................................................................ TABLE 12 66 Pledged Revenue Coverage ................................................................... TABLE 13 68 District Demographics .............................................................................. TABLE 14 69 Student Enrollment Demographic Statistics ............................................ TABLE 15 70 Student Enrollment and Miscellaneous Statistics Annual Unduplicated Enrollment....................................................................... TABLE 16 71 Credit Hours Eligible for Funding by Illinois Community College Board Reimbursement Categories ........................................................ TABLE 17 72 College Demographics ............................................................................ TABLE 18 74 Principal Employers ................................................................................. TABLE 19 75 Full-Time Equivalent Employees ............................................................. TABLE 20 77 Capital Asset Statistics - Volume............................................................. TABLE 21 79 Capital Asset Statistics - Value ................................................................ TABLE 22 81

MORAINE VALLEY COMMUNITY COLLEGE COMMUNITY COLLEGE DISTRICT NUMBER 524

Palos Hills, Illinois

COMPREHENSIVE ANNUAL FINANCIAL REPORT June 30, 2012

TABLE OF CONTENTS

PAGE SPECIAL REPORTS SECTION Uniform Financial Statements ................................................................. SCHEDULE 1 83 Certification of Chargeback Reimbursement .......................................... SCHEDULE 2 90 Independent Auditors’ Report .................................................................. 91 Independent Auditors’ 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 ............................................................. 93 Workforce Development – Business/Industry Grant Program Financial Statements: Balance Sheet………………………………………………………… ....... SCHEDULE 3 95 Statement of Revenues, Expenditures, and Changes in Fund Balance ................................................................... SCHEDULE 4 96 ICCB Compliance Statement for the Workforce Development Business & Industry Grant .............................................. SCHEDULE 5 97 State Adult Education Restricted Funds Financial Statements: Combined Balance Sheet ...................................................................... SCHEDULE 6 98 Combined Statement of Revenues, Expenditures, and Changes in Fund Balances ................................................................. SCHEDULE 7 99 ICCB Compliance Statement for the Adult Education and Family Literacy Grant ........................................................................... SCHEDULE 8 100

MORAINE VALLEY COMMUNITY COLLEGE COMMUNITY COLLEGE DISTRICT NUMBER 524

Palos Hills, Illinois

COMPREHENSIVE ANNUAL FINANCIAL REPORT June 30, 2012

TABLE OF CONTENTS

PAGE Career and Technical Education – Program Improvement Financial Statements: Balance Sheet ........................................................................................ SCHEDULE 9 101 Statement of Revenues, Expenditures, and Changes in Fund Balance ................................................................... SCHEDULE 10 102 Notes to the Financial Statements .......................................................... 103 Background Information on State Grant Activity (Unaudited) ................. 104 Enrollment Data and Other Bases Upon Which Claims Were Filed Independent Accountants’ Report ........................................................... 105 Schedule of Enrollment Data and Other Bases Upon Which Claims Were Filed .............................................................. SCHEDULE 11 107 Residency Policy (Unaudited) ................................................................. SCHEDULE 12 109 Summary of Assessed Valuations (Unaudited)....................................... SCHEDULE 13 110

Introductory SectionFiscal Year EndedJune 30, 2012

Community CollegeDistrict Number 524Palos Hills, IL

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Economic Condition and Outlook The College is located on over 300 acres of land and covers 139 square miles representing a population over 400,000. The College district is in all or part of the following 26 communities: Alsip Forest View Palos Heights Bedford Park Hickory Hills Palos Hills Blue Island Hometown Palos Park Bridgeview Justice Robbins Burbank Merrionette Park Summit Calumet Park Oak Forest (11%) Tinley Park (40%) Chicago Ridge Oak Lawn Willow Springs (80%) Crestwood Orland Hills Worth Evergreen Park Orland Park Mission The College’s mission is guided 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 524. The mission of our college is to educate the whole person in a learning-centered environment, recognizing our responsibilities to one another, to our community, and to the world we share. We value excellence in teaching, learning, and service as we maintain sensitivity to our role in a global, multicultural community. We are committed to continuous improvement and dedicated to providing accessible, affordable, and diverse learning opportunities and environments. We promise to provide a student-centered environment and to focus all College staff and resources on student learning, student development, and student success. The College fulfills its educational mission through:

General Education—Courses and concepts integrated into the curriculum that foster critical thinking and enable informed judgment and decision making

Transfer Programs—Courses in arts, sciences, and business leading to an associate’s degree and fulfilling the first two years of a bachelor’s degree

Career Education—Occupational courses and skill development that respond to industry and community needs and lead to professional credentials, a certificate or an Associate in Applied Science degree

Community Enrichment—Opportunities for residents to engage in lifelong education and cultural enrichment in a learning community

Workforce Development—Partnerships with and customized training for business, government, social, and civic institutions resulting in organizational and economic improvement

Student Development—Programs and services to support and enhance academic, career, and personal growth and success for our diverse student population

Developmental and Enrichment Education—Courses, programs, and services to support and advance academic success leading to high school equivalency, English language proficiency, or entry to college-level courses

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Core Values

Integrity Responsibility Respect Fairness Diversity

Service Statement

We promise to provide a student-centered environment and to focus all College staff and resources on student learning, student development, and student success.

Promise Statement

We value the members of our college community and recognize that each individual is entitled to respect, understanding and positive communication. We recognize that Moraine Valley Community College employees are the College's most valuable resources.

In support of the College's strategic directions, we are committed to providing quality service to students, including prospective, currently enrolled and graduates; community residents; fellow staff members; and others who come in contact with the College.

Vision

We envision a world-class college that meets current and emerging community needs for education and training through excellent service and outstanding programs offered in stimulating learning environments. Strategic Priorities As a learning-centered college, we dedicate all programs, services and resources to student success, with a commitment to continuously monitor, assess, and improve our performance. Moraine Valley will:

• Emphasize and Promote Student Success • Enhance Community Awareness, Connections and Partnerships • Embrace Diversity • Plan, Achieve, and Manage Growth • Build Organizational Capability Through Continuous Improvement

Opportunities Support Student Growth and Success At Moraine Valley Community College, we provide unique learning experiences for our students in and out of the classroom to enable them to grow professionally and personally. Our exceptional faculty and staff, up-to-date technology, and welcoming atmosphere make Moraine Valley a learning-centered environment where all students can achieve their highest potential.

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Enrollment Remains High Moraine Valley provides our students with an exceptional education at an affordable price. We offer a host of extracurricular activities that allow them to pursue new interests, make friends and develop skills such as leadership, time management and communication. And, our campus is beautiful and inviting. All of this combines to make Moraine Valley a wonderful place for our district residents to begin or continue their college education. This year, our enrollment was again outstanding. Our total fall 2011 enrollment was up more than 6 percent compared to the previous fall, with 19,762 students. Credit student enrollment was at a record high, 4.5 percent higher than fall 2010, while noncredit enrollment was up an astonishing 33 percent. Plus, one third of area public high school graduates enrolled at Moraine Valley. We awarded 2,644 degrees and certificates to 2,187 graduates in 2011-2012, and the total number of degrees and certificates awarded to date is 51,870. Health Care Students Have Outstanding Pass Rates Students in our health care programs routinely exceed national pass rates on their licensure and certification tests. This year, they again did exceptionally well. Here is a sample of the pass rates of our graduates who challenged their state or national exams: • 100 percent passed for addictions studies • 100 percent passed for medical assistant • 100 percent passed for polysomnography • 94 percent passed for nursing • 94 percent passed for phlebotomy • 89 percent passed for health information technology • 82 percent passed for emergency medical technician • 80 percent passed for respiratory therapy • 79 percent passed for radiologic technology Agree to Degree Inspires Students to Strive for Program Completion Moraine Valley always has encouraged our students to work toward attaining their degree or certificate with a high level of success. In fact, according to Community College Week’s annual “Top 100 Associate Degree Producers Report,” we are in the top 3 percent in degrees conferred among the nation’s 2,839 two and four-year institutions granting associate degrees. And, we are third in the country in the multi-interdisciplinary studies (science transfer) associate’s degree category. Also, we enacted several Graduation and Completion Rate initiatives and launched our campus wide Agree to Degree campaign. This effort, which encourages our students to sign a pledge that they will commit to earning their associate’s degree or certificate, was enthusiastically embraced by students, faculty and staff. In the spring, a graduation/transfer event was held. Academic advisors completed degree audits with students to verify they had completed the necessary credits to graduate. Students also had an opportunity to meet with over a dozen universities for a possible on-the-spot transfer admission with no application charge. More than 50 of our students applied, and 45 were immediately admitted.

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All of our efforts have been paying off! This year, we experienced a one-year increase of 18 percent and a five-year increase of 60 percent in the number of degrees and certificates we awarded. Illinois Lt. Gov. Sheila Simon visited Moraine Valley as part of her tour of the state’s 48 community colleges to see completion efforts at each campus. She met with administrators and students, and learned more about our initiative. She was given an Agree to Degree T-shirt by one of the student leaders. In addition, the Agree to Degree campaign materials received a Gold award in the National Council of Marketing and Public Relations’ annual Paragon Awards competition. New Programs and Courses Enhance Opportunities By expanding the programs and courses we offer, Moraine Valley continually meets the ever-changing needs of our students. New Certificates and Programs • Android Developer Certificate • Associate Database Administrator Certificate • Gerontology Certificate • IPhone Developer Certificate • Pharmacy Technician Review Program (noncredit) • PHP Programmer Certificate Our Fire Service Management Program offered its first Fire Academy, which prepares participants to complete specific objectives required by the Illinois State Fire Marshal’s Office. All 13 students in the inaugural session met the objectives and participated in a graduation ceremony that was attended by area fire service professionals and Moraine Valley staff members. Also, the Nursing Department graduated its first cohort from the revised Associate Degree Nursing Program, which gives graduates the option to sit for their licensed practical nurse boards after their second semester. New Courses • Android Programming I and II • Discrete Mathematics • IPhone Programming I and II • Law and Ethics in Healthcare • Oracle Database Management • PHP Programming I and II In addition, the Office Systems and Applications certificate curriculum was revised to better reflect current trends. Celebrating Our Students’ Success The College’s chapter of Phi Theta Kappa, the international honor society for two-year and junior colleges, received Five-Star Status, which is the highest level that can be attained. The chapter also received two Illinois Regional Awards for Service Hallmark and College Project and nominated two students for the All-Illinois Academic Team for Community Colleges.

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An Honors Program student was accepted at the prestigious Ivy League institution Cornell University. The Gilman Scholarship Program awarded a Moraine Valley student a $3,000 scholarship to allow him to pursue his studies at Canterbury Christ Church University in England. A Travel-Tourism and Meeting Planning student received a Skål International scholarship from this worldwide organization of tourism executives. Our students participated in the annual Skyway Art, Jazz, STEM, and Writing competitions, as well as in the annual League for Innovation in the Community College’s Art and Writing competitions. Four Moraine Valley students were recognized as Outstanding Soloists and two received Honorable Mentions at the Jazz competition; one student received a second place in poetry at the Writing competition; six students had their artwork selected for the Skyway Art Show; and three teams, made up of 11 students, were recognized with medals for their work in the STEM poster competition. The Glacier student newspaper won numerous awards at the Associated Collegiate Press/College Media Matters National College Newspaper Conference. The paper’s student staff also hosted the Illinois Community College Journalism Association’s sectionals competition. The Moraine Valley Percussion Ensemble performed with the Elmhurst College Percussion Ensemble at their November 2011 concert. They also participated in the 2012 Lincoln-Way Central Day of Percussion, where the group received excellent comments from clinician and noted percussionist, Rich Holly of Northern Illinois University. Four literacy students serve as president, vice president, secretary, and treasurer on the governing board of New Readers for New Life, a network of past and current adult literacy students affiliated with Literacy Volunteers of Illinois. At the Phi Rho Pi National Speech and Debate Tournament, our Forensics team took home the Bronze award, and individual team members received one Gold, six Silver, and three Bronze awards. Moraine Valley hosted the event, which attracted more than 600 student competitors from over 60 community colleges and four-year institutions from across the nation. Student Success – Our Number-One Commitment Moraine Valley’s mission statement says that we “educate the whole person in a learning-centered environment.” By offering numerous programs and services to meet our students’ individual needs, we strive to accomplish this each day. Orientation Our orientation programs provide students with the tools and information they need to make a successful start in college. To ensure our student veterans and their family members properly receive their military educational benefits, we offer the Mandatory Veteran Advising Session and Veteran Orientation programs. More than 670 students were advised on the correct programs and courses they should take to receive their maximum benefits.

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New Student Orientation sessions for Developmental Reading and part-time students were implemented to assist these unique populations in identifying appropriate college resources and selecting courses. Each student attending New Student Orientation received a USB flash drive that contains orientation information, along with College practices and procedures. Students can utilize the drives during their College 101 education-planning meeting and during future academic advising sessions. Tutoring Students sometimes need extra help gaining knowledge and abilities necessary to succeed in college, preparing for tests or mastering specific skills. Our various tutoring opportunities give them the assistance they need. This year, we expanded offerings, locations and the number of tutors.

• The Literacy Program increased their tutoring sites from 22 to 28 locations in our district.

• More than 40 new adult volunteer tutors were trained for the Literacy Program.

• Tutors were designated to work specifically with GED students preparing to take their GED exam.

• Group, peer and drop-in tutoring were established, and online videos were added, to allow students more options when seeking assistance.

• Members of the Honors Program and Phi Theta Kappa served as tutors. Learning Opportunities Beyond Moraine Valley’s Campus We also support our students’ learning beyond the confines of our campus to provide hands-on experiences that will translate into important job skills.

• Culinary Arts students attended the annual National Restaurant Association Show in Chicago.

• Recreation Therapy students attended the Illinois Recreational Therapy Annual Conference

and hosted a Teen Sports Night.

• Travel and Tourism students went to the Motivation Show at McCormick Place and the Hospitality Sales and Marketing Association International’s Meet Mid-America at Navy Pier. They also volunteered at the National Restaurant Association Show.

• Members of the Meeting Planning and Travel Club planned and executed a familiarization

trip to Springfield, Ill. They gained experience making reservations, inspecting convention centers, and planning meals.

• Students in the Special Events Management class helped with the popular annual

Magnificent Mile Lights Festival Parade in Chicago.

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• The Psychology Club visited a mental health courthouse to learn about forensic psychology in a real-life situation.

• Students in Introduction to Sociology classes participated in the Sociology in the Global

Village Project, which lets students research a variety of non-Western countries to gain knowledge regarding differences in socioeconomic, cultural, and social aspects of various societies.

• Future teachers and paraprofessionals attended the Experiencing Autism Program, which

gave them the opportunity to see what it would be like to be autistic and to learn strategies for working with autistic children.

• Students in the Older Adult Recreation and Wellness course organized a Good Old Times

event with activities surrounding New York, Las Vegas, and Hollywood themes to learn all aspects of event planning for senior citizens. They also presented a holiday program for residents at a senior residence.

• Students in the Recreation for Special Populations class arranged a Snow Flurries event for

more than 300 elementary school students to promote self-esteem and team building.

• In addition, approximately 8,500 students participated in more than 150 events that were presented by the Student Life Office that helped develop skills in leadership, team building, communication, community awareness, and more.

Improved Instruction Means More Learning The Center for Teaching and Learning offered more than 160 professional development workshops to faculty and staff on topics such as Avoiding Cheating and Plagiarism, Creating Effective Collaboration in the Classroom, Understanding the Digital Generation, and more. Over 1,100 attendees took advantage of these opportunities. As one of the action projects for the Academic Quality Improvement Program, the College developed an assessment plan to measure and improve student learning across the General Education Core Curriculum. These courses foster complex learning across a wide array of disciplines and satisfy the Illinois Articulation Initiative, making it convenient for our students to transfer to other schools in Illinois. The College also created a set of six rubrics that will be used to score student work and determine areas of improvement in our curriculum and instruction. The Nursing Program piloted the American Testing Institute’s Comprehensive Assessment and Review Program System. This online product enhances nursing theory with online remediation, practice, and proctored assessments that are aligned with current licensing exams. It also allows faculty to analyze student learning to best target instructional improvements. Honors Program The number of Honors classes was increased from six to nine in the fall and spring semesters. Two new courses were also developed. Several faculty and students spoke at breakout sessions at the National Collegiate Honors Council annual conference in Phoenix, Ariz., which was the first time in the program’s nine-year history that students and faculty presented at an out-of-state conference.

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Athletic Achievement Highlights Our student-athletes worked hard on and off the field. We had 14 who were nominated for the National Junior College Athletic Association’s (NJCAA) Academic All-American awards. Two received the NJCAA Pinnacle Award for Academic Excellence for achieving a 4.0 grade point average after completing 45 semester hours. And, Moraine Valley’s Cyclones led the Illinois Skyway Collegiate Conference in academic achievement with 32 student-athletes named to the Conference All-Academic team. They also won the Illinois Skyway Collegiate Conference All Sports Trophy. The Cyclones qualified for berths in the national tournaments in men’s basketball, men’s cross country, men’s golf, and men’s and women’s tennis. Nearly 60 student-athletes received Skyway Conference and All-Region awards. And, two students were named NJCAA Athletic All-Americans, one from our men’s basketball team and one from our men’s golf team. A member of the women’s tennis team won the Novo Nordisk Donnelly Award, which is part of a student scholarship program established by Billie Jean King to encourage youth with diabetes to lead active lives and participate in tennis. The student also met Billie Jean King at the World Team Tennis Pro League championship. There are only two national scholarships given through this program each year. The same student also was named Region IV Player of the Year. The men’s basketball coach was named Co-Coach of the Year in NJCAA Division II by the Illinois Basketball Coaches Association, and also was named the Illinois Skyway Collegiate Conference Coach of the Year. Community Connections and Partnerships Continue to Thrive With a firm commitment to our role as a community college, Moraine Valley routinely connects with organizations, businesses and individuals to provide services and resources that will best serve our students and all district residents. Partnerships Provide Opportunities for Current and Potential Students Moraine Valley faculty and staff worked with the School of the Art Institute to develop an articulation agreement between the two institutions. Moraine Valley and DePaul University signed the Dual Admission Partnership Program. The partnership also includes a scholarship opportunity for our students. The College partnered with the Palos-Orland Chapter of the American Association of University Women to host their annual Math/Science Conference for fifth grade girls and their parents. The Glacier student-run newspaper partnered with the Illinois Press Association to hold a workshop on video editing for Illinois high school journalism educators. Faculty from the Health Sciences Department participated in a Health Care Career Day, which was sponsored by the Moraine Area Career System. Approximately 100 high school students who had expressed an interest in pursuing a career in health care learned about the College’s health care programs and asked questions about the education necessary to be eligible for employment.

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Work Experience Opportunities for Our Students The Job Resource Center worked with students to identify internships that would give them practical job skills. Our students gained experience in their respective fields of study, including Restaurant/Hotel Management, Culinary Arts, Travel/Tourism, Office Systems and Applications, Legal Office Assistant, and Mechanical Design and Drafting/CAD. The Fire Service Program partnered with the Alsip Fire Department and Frankfort Fire Protection District to help our students in the fire academy program master psychomotor objectives. The two departments authorized our fire academy instructors and students to use the burn towers at their training facilities to hone their skills. The Fire Service Program also worked with the Burbank Fire Department, North Palos Fire Protection District, Roberts Park Fire Protection District, and Willow Springs Fire Department to offer student internships as part of our Fire Service Operations A.A.S. degree program. We had 27 students who participated in the Disney College Program and served as interns at one of the Disney properties. The College partnered with Espo Systems to provide Information Technology students with internship opportunities. Supporting Our Veterans - AmeriCorps VISTA Volunteers Offer Assistance Two Volunteers in Service to America (VISTA) volunteers worked at the College to help improve services to our increasing veteran population and coordinate services provided by community organizations to meet the needs of student veterans both inside and outside of the classroom. Moraine Valley Gives Back to Community Moraine Valley’s staff and students volunteered to work in the College’s community garden. Many of the vegetables and herbs that were harvested were donated to the Moraine Valley Community Church food pantry. Two of our academic advisors planted a tree in Bridgeview’s Commissioners Park as part of a community service project of the Arab-American Family Services to recognize military service members. The Library donated books that were withdrawn from its collection to area nonprofit organizations rather than throw them away. This helped the various organizations raise funds through the sale of these materials and is a more sustainable option. College employees participated in the annual Employee Giving Campaign that raised more than $40,000 to benefit Moraine Valley Community College and its students, Southwest Suburban United Way and Community Health Charities of Illinois. Student Groups and College Staff Hold Numerous Events to Help Others Our students and staff volunteered their time, collected donations of money and basic necessities, and organized events to support individuals and organizations in need of assistance.

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• The Culinary Arts Program faculty and students prepared a meal for the residents, workers and guests at the Ronald McDonald House in Oak Lawn.

• Students in the Travel-Tourism Program helped with the Professional Convention Management Association’s charitable projects. They washed mini blinds for Housing Opportunities and Maintenance for the Elderly, an organization dedicated to improving the quality of life for Chicago’s low-income elderly. They also worked with the Off-the-Street Club, a Boys and Girls Club, in one of Chicago’s neediest, high-crime neighborhoods.

• Students in our Recreation Therapy and Recreation Management programs, our Education Program, and students from Stagg, Andrew, Chicago Christian, and Rich East high schools volunteered at the 28th Annual Illinois Special Olympic Motor Activity Program, held in the Moraine Business and Conference Center. More than 150 special athletes participated, which is the largest number of athletes in attendance since the event began.

• Students in Social Sciences classes participated in the global education event titled “Is the U.S. Falling Behind Educationally?” which discussed educational systems in the United States, China, India, and across the world. Attendees reflected upon the differences in these educational systems.

• Approximately 150 units of blood were donated through two blood drives sponsored by the Student Government Association.

• More than $3,000 was raised for St. Baldrick’s Foundation to help children with cancer. • The Music Club hosted a haunted house and collected nonperishable food that was

donated to the Greater Chicago Food Depository. • The Student Government Association and Gay, Lesbian, or Whatever (GLOW) Club

sponsored Change for Change to educate students about the Invisible Children movement, which provides support to war-affected communities in Africa.

• The Combat to College Student Veterans’ Organization held a holiday Toys for Tots collection to donate to the less fortunate in the community.

• The Alliance of Latin American Students sold candy and flowers to raise money for autism. • The Recreation Therapy/Management Club made and sold holiday ornaments to raise

money for Special Olympics. • The Arab Student Union held a winter coat drive. • Phi Theta Kappa held a food drive for Together We Cope. • Women Empowered participated in an Eye4Style event to raise money for the South

Suburban Family Shelter in Tinley Park. Providing Help for Those Seeking Work With many unemployed and underemployed people in our district, Moraine Valley offered programs and assistance to many students and community members. Secretary of Labor Hilda L. Solis and Under Secretary of Education Martha J. Kanter announced a national consortium of community colleges, including Moraine Valley, for training and workforce development to help unemployed workers who are changing careers. More than 200 community colleges around the country applied, and only 32 were selected by the U.S. Department of Labor in coordination with the U.S. Department of Education. The new National Information, Security and Geospatial Technology Consortium will focus on training workers for the information, security and geospatial technologies industries. Moraine Valley will take the lead on developing a virtual learning environment, updating and disseminating cybersecurity curriculum, as well as enhancing our current information technology program by developing a geospatial certificate/degree program. The College’s Job Resource Center hosted two Job and Internship Fairs, which attracted 110 employers and more than 900 job seekers. To help students understand the importance of

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dressing properly for a job fair, the center created displays across campus with mannequins dressed in professional attire. They also acquired professional outfits through a second-hand clothing store to lend to job fair attendees who came dressed in non-business clothing. More than 30 job seekers took advantage of this opportunity. More than 40 community college counselors attended the Counselors Consortium for the C-4 Counselors, which provided training on best practice when working with underemployed and unemployed students who have been out of work for extended periods of time. The new Career Paths and Coffee series, designed to help adults improve job-seeking skills or prepare for a new career, presented speaker Ziggy Letheby from the U.S. Department of Labor at an event which was attended by more than 80 community residents. Moraine Valley’s Police Department Offers Training and Programs to Ensure the Safety of our Students and Community Members Some of the department’s efforts included:

• Facilitated the staging and training of the South Suburban Regional Field Force Team in preparation for the NATO conference in Chicago. The team was designated as the primary Emergency Operations Center for the unit, representing 60 south and southwestern communities. This vital mutual aid unit provides regional communities with crowd control, emergency response and disaster response units, and ensures the protection of members of the campus community and our district residents in times of need.

• Offered eight free domestic violence training sessions for law enforcement personnel from

neighboring communities. The sessions were put on by the Domestic Violence Coalition and resulted in the training of more than 300 officers on current domestic violence procedures.

• Began a child safety seat program and installed child seats for students, community

residents and College staff. This program allows new parents and grandparents to have a certified representative properly install the seat and instruct them on its proper usage.

• Conducted a communications tabletop drill to test our external disaster response with our

South Metropolitan Higher Education Consortium partners. Moraine Valley Police Dispatch procedures were used as an example of preferred practices.

Expanding Community Awareness Moraine Valley embraces our role as a resource for all residents of District 524, and we offer educational programs, cultural events, and entertaining performances to fulfill this role. College Programs Educate, Enlighten and Entertain District Residents and Students Arts and History Guest poet Dr. Matthew Brennan, professor of English at Indiana State University, gave a poetry reading.

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Dr. Theodore Karamanski, a history professor at Loyola University and consultant to the National Park Service, discussed Chicago’s role in the Civil War. Business and Careers The Economic Development Council for the Southwest Suburbs hosted a Business Resource Fair and Expo—“Be Responsible, Be Safe, Stay Profitable!” It featured guest speaker Maria Wynne, CEO of the Girl Scouts of Greater Chicago and Northwest Indiana, and introduced business leaders to useful resources in our community. The Criminal Justice Club invited Jeremy Hirst, a former Army Ranger, to speak about leadership and ways to manage emergency situations. Health and Safety More than 600 students and community members gained information on state-of-the-art medical treatments at lectures that were presented in partnership with Northwestern Memorial Hospital. Topics covered included “Cutting-Edge Therapies for Diabetes,” “Sleep: The Gentle Tyrant,” “Scars and Plastic Surgery: What’s New?” and more. The College’s Earth Month Celebration focused on health issues and included seminars such as “Flexitarians: Healthy You and Healthy Planet,” “Plastics and You: Is Convenience Worth the Cost?” and “A Conversation about Being Beautiful: Cosmetics for Men and Women.” The College hosted a Children’s Mental Health Conference. During Mental Health Month, a panel on eating disorders was presented and featured Dr. Jan Hart, Ph.D., a local clinical psychologist. Two student-run clubs hosted a self-defense workshop. More than 300 students attended a panel discussion on sex trafficking that included representatives from the Chicago Police Department, Chicago Alliance Against Sexual Exploitation and the Salvation Army’s STOP-IT Program. Fine and Performing Arts Center Gets Rave Reviews The Fine and Performing Arts Center presented 12 mainstage performances during its 2011-2012 season. The center again broke revenue and attendance records with more than 7,000 patrons attending the eclectic performances. Fun Under the Stars The College hosts family-friendly performances at our Gateway, such as summer productions of Shakespeare and the Movie in the Moonlight event. Enriching College Culture through Diversity At Moraine Valley, we are proud of our diverse student population, and we believe that each of us is enriched by learning about different cultures, being exposed to opposing ideas, and sharing our unique perspectives with others.

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Discussion Explores Diversity More than 100 people from the 26 communities we serve, including elected officials, staff from local school districts, members of law enforcement, along with our faculty and staff, participated in the Community Dialogue on Promoting Diversity and Inclusion seminar and discussed thought-provoking questions and situations around diversity and inclusion. Fine and Performing Arts Center Showcases Music and Dance of Various Cultures • Juan Siddi Flamenco Theatre Company featured music, singing and dancing from Spain • Singer-songwriter Cathie Ryan performed Celtic music • Ragamala Dance highlighted art, music and dance from the Warli people of western India Sharing with Educators from Around the World Representatives from the Shanghai Institute of Health Sciences visited our campus. The College has a new relationship with this institution, and we received three transfer nursing students from it. The Automotive Technology Program hosted a delegation of Chinese automotive educators and administrators to share ideas on educating students and discuss our curriculum and practices with them. A professor in our Child Care Program traveled to Guatemala to observe a Montessori school and a preschool. She brought what she learned back to familiarize her students with the educational systems and philosophies of different cultures. Events Focus on Diversity Topics The College partnered with the Palos Fine Arts Association to present the One Book, One College and Palos Reads Program on the book Between Two Worlds: My Life and Captivity in Iran. The book’s author, Roxana Saberi, visited campus and discussed her experiences after she was accused of being an American spy in Tehran. The Blue Island Education Center offered a piñata demonstration for Hispanic Heritage Month and a line dance demonstration for African-American History Month. The College offered workshops and a webinar to promote minority student success including, “Building for Success: A Model for Improving African-American Male Retention”, “Success and Diversity, Collaborations for First-Generation Hispanic Student Success,” and “Understanding the Arab/Arab-American Student Population on Campus.” At the College’s annual Staff Recognition Dinner, a new Embracing Diversity Award was announced. College president Dr. Vernon O. Crawley received the inaugural award, which will be given annually. Emphasis on Language Improves and Expands Learning The International/U.S. Conversation Partners Program was implemented to increase friendship and interaction between local students and international students. More than 180 students participated and spent time communicating with each other, attending events together, and sharing their life experiences, in an effort to gain cross-cultural knowledge and awareness.

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The Children’s Learning Center added Spanish language instruction to its curriculum. The center also invited members of the Arab Student Union to teach the children Arabic for a day. Student Life Office Sponsors Numerous Events to Promote Understanding and Acceptance of Diverse Populations

• GLOW Club sponsored National Coming Out Day • Alliance of Latin American Students celebrated the Day of the Dead • Combat to College Student Veterans’ Organization and GLOW held a luncheon to honor

the repeal of the Don’t Ask, Don’t Tell policy • Arab Student Union celebrated Arab Heritage Month, with cultural displays including food,

henna tattoos, music, and dance • Phi Theta Kappa sponsored Unity in the Community Week to improve student engagement

on campus • The Alliance of African-American Students celebrated Black History Month with “Soul

Valley”—a fashion show and Soul Train Line where historical facts were shared • Women Empowered recognized Women’s History Month by viewing Miss Representation, a

film that explores how the media’s misrepresentations of women has led to the underrepresentation of women in positions of power and influence

• Women Empowered hosted a session that included information about the styling and care of natural black hair, and promoted safety, health and money-saving tips

Energizing and Enhancing College Growth With an unrelenting commitment to excellence, Moraine Valley utilizes our resources to grow and maximize our students’ opportunities. Continuous Improvement—A College Focal Point Moraine Valley is committed to continuous improvement in all areas of the College—our programs, services and processes—to ensure we are giving our students the best education possible and providing our community with the exceptional community college it deserves. Saving Money for Our Students and Taxpayers We have a strong commitment to fiscal responsibility and continually look for ways to provide excellent service while protecting the interests of the taxpayers in our district.

• We joined a consortium with two other community colleges to save approximately $120,000 in health care insurance costs by jointly purchasing health insurance. The consortium is hoping to attract more colleges and reduce costs even further in the future.

• We ceased using the College’s mainframe computer server, which brings an annual cost savings of $222,000.

• We began automatically shutting down computers in common areas. Previously, these PCs may have been left on throughout the week or night.

• We joined forces with seven other South Metropolitan Higher Education Consortium colleges and universities to reduce our electricity costs. The schools worked together and secured a rate that will reduce monthly expenses by $25,000. The College hopes to apply some of the cost savings to future sustainability efforts.

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Tip-Top Technology Moraine Valley has always had a strong commitment to providing the latest technology for our students. This year, we were ranked ninth among large-size community colleges with 10,000 or more enrollment by e.Republic’s Center for Digital Education and Converge Online’s Seventh Annual Digital Community Colleges Survey, which recognizes colleges that have made significant advances in utilizing information technology. Here are some of the technology enhancements and additions we made over the past year: The Education Department acquired 20 iPads for use in our Technology for Educators and Students with Disabilities in School classes. Currently, Moraine Valley is the only community college in Illinois using iPads in their education courses. The Heating and Air Conditioning Program received donations of two state-of-the-art direct digital control systems. A Mobile Technology Program was developed to utilize mobile devices as strategic instructional and office tools. Dr. Vernon O. Crawley Leadership Academy Launches The Leadership Academy was created to help employees of all levels develop and improve their leadership skills. Workshops that focused on delegation, communication and conflict management were offered. Plus, the Leadership Assembly, an intensive two-and-a-half day program, was introduced. Interested employees must apply to participate in this annual session, which features speakers and activities related to leadership. Green Efforts Lead to Platinum and Gold Moraine Valley’s dedication to being a leader in sustainability was evident this year. Every area of the College was encouraged to identify ways to be more green in our everyday practices. We also focused on educating our students and community members on the value of being good citizens in environmental sustainability. Our efforts were noticed. The Southwest Education Center was awarded platinum certification by the U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED). Platinum is the highest LEED ranking possible. The College also was recognized as a Gold Level Compact School by the Illinois Campus Sustainability Compact Program. Here is a sampling of the projects that led to these prestigious honors: With online class schedules offering up-to-the-minute data, we eliminated the printing of two class schedules, significantly reducing paper and postage costs. We recycled over three tons of nonfunctional computer, network, and multimedia equipment through a green recycling company. Campus monitors were updated with flat-screen models, which eliminated all remaining high-energy-use CRTs at the College.

xvii

Our Economic Development Council for the Southwest Suburbs hosted a Green Economy Action Roadshow, which brought together businesses, governmental agencies, nonprofits, and individuals to promote the local green economy. We partnered with the Illinois Department of Commerce and Economic Opportunity, Illinois EPA, Illinois Clean Cities, and American Lung Association of Illinois to host an electric vehicle forum. A member of the College staff designed the Governor’s Illinois Green Governments Coordinating Council’s gold, silver and bronze awards. Students in a Three-Dimensional Design class completed a sculpture entitled “Trash People” using discarded items, which they displayed in the Fine and Performing Arts Center. The Child Care Program and the Children’s Learning Center developed a children’s garden. The Fine and Performing Arts Center presented performances of Trash and Recycle Show with Steve Trash: Rockin’ Eco Hero. Exceptional Efforts Receive Acknowledgment Our Dreamkeepers Emergency Financial Assistance Program received the First Runner-Up Award in the Illinois Council of Community College Administrators’ 2011 Innovation Award Competition. An audit of the ACT Testing Centers for High Stakes Testing was conducted by the American College Testing program, and Moraine Valley’s center exceeded the national average in all four areas of valuation. The College received over 20 awards in regional and national competitions for excellence in our various marketing and advertising materials from the Educational Advertising Awards, National Council for Marketing and Public Relations, University College Designers Association, University Photographers Association of America, and Videographer Awards. FINANCIAL INFORMATION The College maintains its accounts and prepares its financial statements in accordance with accounting principles generally accepted in the United States of America (GAAP) as set forth by the Governmental and Financial Accounting Standards Boards (GASB and FASB), National Association of College and University Business Officers (NACUBO) and the Illinois Community College Board (ICCB). The financial records of the College are maintained on the accrual basis of accounting whereby all revenues are recorded when earned and all expenses are recorded when an obligation has been incurred. The notes to the financial statements expand and explain the financial statements and the accounting principles applied. Internal Controls Management of the College is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the College are protected from loss, theft, or misuse and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control

xviii

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. Tests are made by the College's independent auditors to determine the adequacy of the internal control structure, including that portion related to federal financial assistance programs, as well as to determine that the College has complied with applicable laws and regulations. The results of the tests for the fiscal year ended June 30, 2012 provided no instances of material weaknesses in the internal control structure. Budgetary Controls In addition, the College maintains budgetary controls. The objective of the budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the College's Board of Trustees. Activities of the funds are included in the annual appropriated budget. The President is authorized to transfer budgeted amounts between programs within any fund; however, the Board of Trustees must approve any revisions that alter the total expenditures of any fund in a manner consistent with the original budget adoption process. Activities of the following fund groups and individual funds are included in the annual budget.

Fund Group Fund General Fund Education Operations and Maintenance of Plant Special Revenue Restricted Purposes Liability, Protection, and Settlement Audit Grants and Contracts Social Security/Medicare Debt Service Fund Bond and Interest Capital Projects Operations and Maintenance (Restricted) Proprietary Fund Auxiliary Enterprises

The level of budgetary control (that is, the level at which expenditures cannot exceed the appropriated amount) is established for each individual fund. The College also maintains an encumbrance accounting system as one technique of accomplishing budgetary control. Encumbered amounts lapse at year-end. However, encumbrances generally are re-authorized as part of the following year’s budget. As demonstrated by the statements and supplementary financial information included in the financial section of this report, the College continues to meet its responsibility for sound financial management. Financial Planning Long-term financial planning is performed on an ongoing basis. The controlling document is the College’s 5-year financial plan which includes reserves by fund. Along with the adoption of the 2013 budget, certain tuition and fee increases were approved by the board of trustees. The board of trustees approved a three year tuition rate increase of $5 per credit hour each academic year

xx

MORAINE VALLEY COMMUNITY COLLEGE COMMUNITY COLLEGE DISTRICT NUMBER 524

PRINCIPAL OFFICIALS JUNE 30, 2012

BOARD OF TRUSTEES

Position Term Expires Joseph P. Murphy Chairman 2013 Patrick D. Kennedy Vice Chairman 2015 Susan Murphy Secretary 2017 John R. Coleman Trustee 2017 Lisa Szynalski Trustee 2013 Sandra S. Wagner Trustee 2013 Mark D. Weber Trustee 2015 Taylor Geraghty Student Trustee 2013

OFFICERS OF THE COLLEGE

Dr. Vernon O. Crawley President Dr. Margaret Lehner Interim Vice President, Institutional Advancement and Executive Assistant to the President Mr. Andrew Duren Executive Vice President, Administrative Services Dr. Sylvia Jenkins Vice President, Academic Affairs Dr. Normah Salleh-Barone Vice President, Student Development Mr. Robert J. Sterkowitz Chief Financial Officer/Treasurer

OFFICIALS ISSUING REPORT

Mr. Robert J. Sterkowitz Chief Financial Officer/Treasurer Ms. Theresa O’Carroll Controller Mr. William Corrello Internal Auditor

DIVISION ISSUING REPORT

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Financial SectionFiscal Year EndedJune 30, 2012

Community CollegeDistrict Number 524Palos Hills, IL

1.

Crowe Horwath LLP Independent Member Crowe Horwath International

INDEPENDENT AUDITORS’ REPORT

The Board of Trustees Moraine Valley Community College – Community College District Number 524 Palos Hills, Illinois

We have audited the accompanying basic financial statements of Moraine Valley Community College – Community College District No. 524 (the College) as of and for the year ended June 30, 2012 as listed in the table of contents. These financial statements are the responsibility of the College’s management. 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 of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and the significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the College, as of June 30, 2012, and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated October 12, 2012 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 and should be considered in assessing the results of our audit.

2.

Accounting principles generally accepted in the United States of America require that Management’s Discussion and Analysis on pages 3 through 14 be presented to supplement the financial statements. Such information, although not a part of the financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the 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 financial statements, and other knowledge we obtained during our audit of the 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. Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the College’s financial statements. The introductory section, supplementary information, statistical section, and special reports section information included in schedules 1 and 2 (special reports section) are presented for purposes of additional analysis and are not a required part of the financial statements. 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 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 and the supplementary information have been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the 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 and the supplementary information are fairly stated in all material respects in relation to the financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on them.

Crowe Horwath LLP Oak Brook, Illinois October 12, 2012

3.

MANAGEMENT’S DISCUSSION AND ANALYSIS

INTRODUCTION AND BACKGROUND This section of Moraine Valley Community College District 524’s (the College) Comprehensive Annual Financial Report presents management’s discussion and analysis (MD&A) of the College’s financial activity during the fiscal year ended June 30, 2012. Since this MD&A is designed to focus on current activities, resulting changes and currently known facts, please read it in conjunction with the Transmittal Letter (pages i - xix), the College’s basic financial statements (pages 15 - 18) and the notes to the financial statements (pages 19 - 41). Responsibility for the completeness and fairness of this information rests with the College.

USING THIS ANNUAL REPORT The financial statements focus on the College as a whole and are designed to emulate corporate presentation models whereby all College activities are consolidated into one total. The financial statements consist of four primary parts: (1) the statement of net assets, (2) statement of revenue, expenses, and changes in net assets, (3) statement of cash flows and (4) notes to the financial statements. The financial statements are prepared on the accrual basis of accounting and economic resources measurement focus. Under the accrual basis of accounting, expenses are recorded when incurred and revenues are recognized when earned in accordance with generally accepted accounting principles. The Statement of Net Assets is presented in the format where assets equal liabilities plus net assets. Assets and liabilities are presented in order of liquidity and are classified as current (convertible into cash within one year) and noncurrent. This statement combines and consolidates current financial resources (short-term spendable resources) with long-term capital assets. The focus on this statement is to show the overall liquidity and health of the College as of the end of the fiscal year. The Statement of Revenues, Expenses, and Changes in Net Assets focuses on both the gross and net costs of College activities, which are supported substantially by property taxes, state and federal grants, student tuition and fees and auxiliary enterprises revenues. This approach is intended to summarize and simplify the user’s analysis of the financial results of the various College services to students and the public. The statement of Cash Flows discloses net cash provided by or used for operating, non-capital financing and related financing activities. This statement shows the College’s cash flows are sufficient to pay current liabilities. The notes to the financial statements are an integral part of the basic statements and describe the College’s significant accounting policies. The reader is encouraged to review notes in conjunction with the management discussion and analysis of the financial statements.

4.

FINANCIAL HIGHLIGHTS

STATEMENT OF NET ASSETS The major components of Moraine Valley’s assets, liabilities, and net assets as of June 30, 2012 and 2011 are as follows (in millions of dollars):

Fiscal Year 2012 Compared to 2011 Assets Total current and other assets increased by approximately $45.9 million as compared to prior year. The primary reason for this increase is attributable to an increase of $49.1 million in restricted investments from bond proceeds held in escrow to advance refund a portion of the College’s outstanding General Obligation Bonds, Series 2007B and an increase of $2.0 million in accrued revenue due the College from the State offset by a decrease of $5.7 million in cash and cash equivalents. Net Assets See net assets section on page 6 for the discussion of the $1.5 million increase in net assets.

Increase Percent2012 2011 (Decrease) Change

AssetsCurrent and other assets $ 175.9 $ 130.0 $ 45.9 35.3%Capital assets, net of depreciation 155.9 153.0 2.9 1.9%Total assets 331.8 283.0 48.8 17.2%

LiabilitiesCurrent liabilities 36.6 35.5 1.1 3.1%Non-current liabilities 127.0 80.8 46.2 57.2%Total liabilities 163.6 116.3 47.3 40.7%

Net AssetsInvested in capital assets, net of debt 76.6 71.5 5.1 7.1%Restricted expendable 25.1 27.7 (2.6) (9.4%)Unrestricted 66.5 67.5 (1.0) (1.5%)Total Net Assets $ 168.2 $ 166.7 $ 1.5 0.9%

5.

Liabilities Current Liabilities increased $1.1 million due primarily to an increase in the current portion of the long term debt obligation of $0.7 million and increase of $0.4 million in deferred property taxes. Non-current liabilities increased $46.2 million in fiscal year 2012 compared to 2011. The primary reason for the increase is attributable to long term bonds payable issued as part of the plan to advance refund a portion of the College’s outstanding General Obligation Bonds, Series 2007B.

Comparison of Net Assets Fiscal Years 2012 and 2011

(in millions)

0102030405060708090

Net Invested inCapital Assets

Restricted Unrestricted

20122011

Net Assets Total Net Assets increased by $1.5 million over prior year. This increase is attributable to an increase in capital spending on college improvement projects. The net investment in capital assets increased by $5.1 million which was offset by a $2.6 and $1.0 million decrease in restricted capital projects and unrestricted net assets respectively. Current Ratio The College had a current ratio of 2.7 times at June 30, 2012. The current ratio is total Current Assets divided by total Current Liabilities. This means that for every dollar of Current Liabilities, the College has $2.74 in Current Assets. This means that the College is financially secure on a short term basis and is capable of paying its current obligations.

6.

ANALYSIS OF NET ASSETS

Increase Percent $ in millions 2012 2011 (Decrease) IncreaseNet Assets

Invested in Capital Assets, Net of Debt $ 76.6 $ 71.5 $ 5.1 7.1%Restricted Expendable 25.1 27.7 (2.6) (9.4%)Unrestricted 66.5 67.5 (1.0) (1.5%)

Total $ 168.2 $ 166.7 $ 1.5 0.9%

Analysis of Net Assets

As of June 30, 2012

Unrestricted39.5%

Restricted14.9%

Net Investment In Capital Assets

45.6%

Fiscal Year 2012 Compared to 2011 Changes in net assets are an indicator of a governmental entity’s financial position. The College’s combined net assets increased by 0.9 percent or $1.5 million. Invested in capital assets, net of related debt increased $5.1 million. Major renovations were done to modernize the Center for Contemporary Technology and a new parking lot was installed to increase spaces. Improvements were made to the heating and ventilation systems in Buildings A and B. Building S received a new roof system and we also purchased five acres of property adjacent to the Palos Hills location and a building to add classroom space. Restricted assets decreased $2.6 million as a result of the funding of capital projects listed above. Unrestricted net assets decreased $1.0 million, primarily due to a decrease in tuition revenue.

7.

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS The following table presents the statement of revenues, expenses and changes in net assets for the College for fiscal years 2012 and 2011 (in millions of dollars):

Increase Percent

2012 2011 (Decrease) Change

Operating revenue

Tuition and fees $ 27.7 $ 28.7 ($ 1.0) (3.5%)

Auxiliary 7.4 7.2 0.2 2.8%

Chargeback 0.1 - 0.1 0.0%

Other operating revenue 2.5 2.0 0.5 25.0%

Total operating revenue 37.7 37.9 (0.2) (0.5%)

Less operating expenses 112.7 107.4 5.3 4.9%

Operating income (loss) (75.0) (69.5) (5.5) 7.9%

Non-operating revenue (expenses)

State grants and contracts 22.8 20.3 2.5 12.3%

Local property taxes 33.6 32.3 1.3 4.0%

Federal grants and contracts 22.3 20.5 1.8 8.8%

Local sources 0.4 0.6 (0.2) (33.3%)

Investment income 1.1 0.7 0.4 57.1%

Interest expense (3.8) (3.6) (0.2) (5.6%)

Total non-operating revenue (expenses) 76.4 70.8 5.6 7.9%

Net Income before capital contributions 1.4 1.3 0.1 7.7%

Capital contributions 0.1 0.1 – –

Increase in net assets 1.5 1.4 0.1 7.7%

Net assets, beginning of year 166.7 165.3 1.4 0.8%

Net assets, end of year $ 168.2 $ 166.7 $ 1.5 0.9%

8.

REVENUES: Fiscal Year 2012 Compared to 2011 Operating and non-operating revenue total $117.9 million for fiscal year 2012, an increase of $5.6 million over fiscal year 2011. The largest component of revenue, $33.6 million, is from local property taxes which comprises 28.5% of total revenues. Revenues from student tuition and fees were $27.7 million in fiscal year 2012 and represent the second largest component of total revenues at 23.5%. State and Federal revenues were $22.8 million and $22.3 million respectively each accounting for approximately 19% of total fiscal year 2012 revenues. Operating revenue from tuition and fees decreased $1.0 million from the previous year. This decrease is attributable to the offsetting increase in financial aid. Generally Accepted Accounting Principles (GAAP) require colleges to report tuition and fees funded by state and federal financial awards as nonoperating revenue and not as tuition. The amount of state and federal scholarships applied to tuition was $18.9 million in fiscal year 2012 compared to $15.7 million in fiscal year 2011, an increase of $3.2 million which is classified in non-operating revenues. The table below summarizes total gross tuition and fee revenues before reclassifying the federal and state financial aid awards to non-operating revenue. As shown in the table below, student tuition and fees before adjustment were $46.6 million, or $2.2 million higher than fiscal year 2011.

Change % ChangeFY2012 FY2011 2012-11 2012-11

Student tuition and fees 46.6$ 44.4$ 2.2$ 5.0%Federal and State Awards (18.9) (15.7) 3.2 20.4%Student tuition and fees, net 27.7$ 28.7$ (1.0)$ (3.5%)

Non-operating revenue and expenses increased $5.6 million overall. State revenue increased $2.5 million due to an increase in the total pension plan contributions made by the State of Illinois on behalf of employees participating in the State University Retirement System (SURS) plan. According to the Governmental Accounting Standards Board (GASB), the employer of these members must disclose the on-behalf payments as revenues and expenditures in the financial statements. Local property tax revenue increased by $1.3 million due to an increase in the property tax levy. Revenues from federal grants increased $1.8 million primarily due to increases in student federal financial aid. Investment income increased $0.4 million due to an increase in investment returns related to bond proceeds used to advance refund a portion of the College’s series 2007B bonds. Interest on capital related debt decreased $0.2 million.

9.

Operating and Non-Operating Revenues June 30, 2012

Tuition & Fees23.6%

Investment0.9%

Local Tax Revenue28.6%

Federal Grants /Contracts

19.0%

State Grants/Contracts

19.4%

Other2.1%

Auxiliary6.3%

Chargeback Revenue

0.1%

Auxiliary Enterprise revenue increased $0.2 million over the prior year primarily due to an increase in sales and service fee revenue. The Continuing Education program had an increase in non-credit enrollment for fiscal year 2012 compared to 2011 which resulted in a $0.4 million increase in revenue. The bookstore revenue decreased by $0.2 million in revenue due to a decrease in the volume of books sold.

10.

OPERATING EXPENSES: Operating expenses as of June 30, 2012 increased $5.3 million or approximately 5 percent over fiscal year 2011. Instructional expenses increased $1.8 million overall. Included is a $1.2 million increase in State University Retirement System (SURS) on-behalf pension payments made by the State. The remaining $0.6 million increase is attributable to salaries, benefits and instructional supplies used to support instruction. Academic Support increased $0.4 million. Student Services increased $0.3 million and Public Service increased $0.1 million also attributable to the SURS on-behalf payments made by the State. Operations and Maintenance decreased 3.2 percent, or $0.4 million. This decrease is attributable to the completion of the college campus expansion projects. Institutional Support increased $3.8 million related to new capital projects and an increase of SURS on-behalf pension payments. Auxiliary Services increased $0.1 million. Financial Aid decreased $1.3 million primarily from Pell student awards. Depreciation increased $0.5 million

Increase Percent2012 2011 (Decrease) Change

Operating ExpenseInstruction $ 38.2 $ 36.4 $ 1.8 4.9%Academic Support 7.1 6.7 0.4 6.0%Student Services 10.4 10.1 0.3 3.0%Public Service 0.4 0.3 0.1 33.3%Operations/Maintenance of Plant 12.0 12.4 (0.4) (3.2%)Institutional Support 20.6 16.8 3.8 22.6%Auxiliary 10.1 10.0 0.1 1.0%Financial Aid 8.4 9.7 (1.3) (13.4%)Depreciation 5.5 5.0 0.5 10.0%

Total $ 112.7 $ 107.4 $ 5.3 4.9%

11.

Operating Expenses

June 30, 2012

Instruction33.8%

Academic Support6.3%Student Services

9.3%

Public Service0.4%

Institutional Support18.3%

Auxiliary9.0%

Financial Aid7.5%

Depreciation4.9%

Operations & Maintenance

10.5%

As shown in the operating expense chart, fiscal year 2012 instruction costs were $38.2 million. This category represents all of the direct costs associated with teaching students and is the largest component of operating expenses, accounting for 33.8% of total operating expense. Instruction costs were $1.8 million higher than fiscal year 2011 with $1.2 million coming from the state on-behalf pension payment (SURS) and $0.6 million resulting from salary increases for instructional staff. Institutional Support increased $3.8 million from the previous fiscal year. The portion of state on-behalf pension payment (SURS) attributable to institutional support expenses was an increase of $1.9 million. In addition, institutional support increased $1.9 million from increased costs associated with health care insurance provided to employees. Financial Aid expense represents the portion of financial aid that is refunded back to the student after tuition and fees. The College had an increase in the amount applied to student tuition therefore we see a decrease of $1.3 million in the amount refunded to students.

12.

Comparison of Operating Expenses

Fiscal Years 2012 and 2011 (In millions)

0

5

10

15

20

25

30

35

40

45

Instruction AcademicSupport

StudentServices

PublicServices

Operations &Maintenance

InstitutionalSupport

Auxiliary Financial Aid Depreciation

2012 2011

STATEMENT OF NET CAPITAL ASSETS AND LONG-TERM DEBT

Increase Percent 2012 2011 (Decrease) Change

Capital AssetsConstruction in Progess $ 4.2 $ 1.8 $ 2.4 133.3%Land and Improvements 18.9 17.7 1.2 6.8%Building and Improvements 179.2 174.3 4.9 2.8%Equipment 5.4 7.0 (1.6) (22.9%)Technology 6.1 6.2 (0.1) (1.6%)

Total 213.8 207.0 6.8 3.3%

Less Accumulated Depreciation (57.9) (54.0) (3.9) (7.2%)Net Capital Assets $ 155.9 $ 153.0 $ 2.9 1.9%

(in millions)

13.

Increase Percent Long Term Debt 2012 2011 (Decrease) Change General Obligation Bonds 125.7$ 78.9$ $ 46.8 59.3% Bond Premium 3.4 3.3 0.1 3.0%Total Bonds, net 129.1 82.2 46.9 57.1%Compensated Absences &Retirement Benefit Obligations 2.1 2.1 - 0.0%Total 131.2$ 84.3$ 46.9$ 55.6%

Fiscal Year 2012 Compared to 2011 As of June 30, 2012, the College had $213.8 million investment in capital assets, and $57.9 million in accumulated depreciation for total net capital assets of $155.9 million. Total capital assets increased $6.8 million over fiscal year 2012. Buildings and Building Improvements increased $4.9 million, of which $1.4 million were for major renovations to the Blue Island Education Center, $0.9 million was for a new ventilator system in buildings A and B, $1.8 million for roof replacements on buildings B and S, and $0.8 million to purchase land and property just east of campus (building R). Construction in Progress increased $2.4 million primarily due to renovation in the Center for Contemporary Technology and a new parking lot on the west end of campus. This work is expected to be completed in the Fall, 2012. Equipment decreased by $1.6 million resulting from the disposal of the College’s old business system. More detailed information about capital assets can be found in Note 6 to the financial statements. During fiscal year 2012, bond payable outstanding increased by $46.9 million. During April and May 2012, the College issued General Obligation Bonds Series 2012A in the amount of $9,505,000, Series 2012B in the amount of $15,885,000, and Series 2012C in the amount of $23,605,000. The proceeds will be used to advance refund a portion of the District’s outstanding General Obligation Community College Bonds, Series 2007B. The refunding is expected to result in approximately $6 million in savings to the taxpayers of the district. The savings resulted from favorable interest rates and Moody’s Investors Service’s highest rating. Moody’s assigned an Aaa rating for the College’s general obligation refunding bonds. The advance refunding was done with State of Illinois General Obligation (GO) Bonds which are held in escrow for the purpose of refunding a portion of the callable bonds from the 2007B series. When invested in State of Illinois GO bonds, the refunded bonds and the new bonds remain on the College’s financial statements. GO bonds are secured by the full faith and credit of the State. General Obligation bonds are the strongest security the State can provide investors for the repayment of debt service. Sources of repayment are not limited to any one revenue stream and the State can draw from all State funds in the State treasury if needed to pay debt service on GO bonds (30 ILCS 330/14). More detailed information about the College’s long-term liabilities is presented in Note 5 to the financial statements.

14.

CURRENT ISSUES Dr. Sylvia Jenkins became the fifth president of Moraine Valley Community College on July 1, 2012. She succeeded Dr. Vernon O. Crawley, who retired after 21 years as college president. The Board of Trustees passed an $84 million operating budget for Fiscal Year 2013. The economic downturn has resulted in increased credit hours for the district. The Board of Trustees passed a $5 per credit hour tuition increase and a $8 per credit hour construction and infrastructure fee for the Fall semester. Increases in enrollment and tuition rates will help to cover reductions in state funding. The budget is built on conservative revenue projections to be sure the College can sustain any shortfall if the state does not meet its obligations. On August 22, 2012, the governing board of Moraine Valley Community College held a public hearing concerning the intent to sell, not to exceed $35.5 million in General Obligation Refunding Bonds (Alternative Revenue Source). On September 19, 2012, the board of trustees adopted a resolution providing for the issuance, not to exceed $35.5 million of General Obligation Bonds (Alternative Revenue Source). The bond proceeds will be used to finance the cost of building and equipping a new health education and wellness center for the district. A project timeline has been set with work on the building projected to begin this fall with an opening in early 2014. Management is not aware of any other currently known facts, decisions, or conditions that would have a significant impact on the College’s financial position (net assets) or results of operations (revenues, expenses, and other changes in net assets).

ECONOMIC FACTORS THAT WILL AFFECT THE FUTURE The College continues to be concerned with the budget deficits incurred by the State of Illinois and the impacts these deficits may have on future funding for Community Colleges and financial aid for students. The low interest rate environment has an adverse impact on the revenue the college generates from investments. The high unemployment experienced throughout the State and community continue to add pressure on the College to maintain conservative tuition in order to provide affordable education and training for members of the community. The College continues to track residential and commercial property values and economic activity in the residential and office construction sectors to forecast future funding impacts on the College. Revenues from property taxes represent approximately thirty-five percent of the revenues the College receives to fund operations. A slowdown in the growth of assessed valuations will have an adverse impact on College revenues.

CONTACTING FINANCIAL MANAGEMENT This financial report is designed to provide our bondholders, customers and other interested parties with a general overview of Moraine Valley Community College’s finances and to show Moraine Valley Community College’s accountability for the revenue it receives. If you have questions about this report or need additional information, contact Theresa O’Carroll at 9000 W. College Parkway, Palos Hills, IL 60465 (708) 974-4300.

STATEMENT 1

MORAINE VALLEY COMMUNITY COLLEGECOMMUNITY COLLEGE DISTRICT NUMBER 524

STATEMENT OF NET ASSETSJUNE 30, 2012

ASSETS Current Assets: Cash and Cash Equivalents 12,933,370$ Short-term Investments 55,714,257 Property Tax Receivable 16,049,726 Tuition and Fees Receivable 8,559,723 Other Accounts Receivable 328,645 Interest Receivable 131,444 Other Accrued Revenue 2,359,970 Intergovernmental Receivable 2,239,093 Inventory 764,577 Prepaid Expenses 1,323,713 Total Current Assets 100,404,518 Non-current Assets: Long-term Investments 24,960,761 Restricted Investments for Debt Service 49,152,285 Deferred Charges 1,365,479 Capital Assets, not being depreciated 10,052,204 Capital Assets (net of accumulated depreciation) 145,823,943 Total Non-current Assets 231,354,672 Total Assets 331,759,190

LIABILITIES Current Liabilities: Accounts Payable 1,931,705 Accrued Payroll 2,474,728 Accrued Compensated Absences 1,001,548 Accrued Interest Payable 412,039 Accrued Retirement Benefit Obligations 229,810 Intergovernmental Payables 29,506 Unearned Tuition and Fees Revenue 11,188,007 Unearned Property Taxes 16,421,308 Current Portion of Long-term Obligations 2,930,000 Total Current Liabilities 36,618,651 Non-current Liabilities: Accrued Compensated Absences 333,849 Accrued Retirement Benefit Obligations 511,090 Long-term Bonds Payable 126,122,356 Total Non-current Liabilities 126,967,295 Total Liabilities 163,585,946

NET ASSETS Invested in Capital Assets, Net of Related Debt 76,635,607 Restricted Expendable for: Scholarships 279,032 Capital Projects 10,245,931 Debt Service 2,486,581 Technology 3,755,039 Working Cash 6,464,261 Other 1,871,045 Unrestricted 66,435,748

Total Net Assets 168,173,244$

See accompanying notes to basic financial statements.15.

STATEMENT 2MORAINE VALLEY COMMUNITY COLLEGE

COMMUNITY COLLEGE DISTRICT NUMBER 524STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS

YEAR ENDED JUNE 30, 2012

REVENUES Operating Revenues Tuition and Fees (net of scholarship allowances of $18,883,474) 27,669,294$ Auxiliary Enterprise Revenue 7,384,332 Chargeback Revenue 100,252 Other Operating Revenues 2,518,775 Total Operating Revenues 37,672,653

EXPENSES Operating Expenses Instruction 38,161,603 Academic Support 7,153,862 Student Services 10,399,301 Public Service 430,844 Operations and Maintenance 11,975,328 Institutional Support 20,624,625 Auxiliary Enterprises 10,142,671 Financial Aid 8,366,379 Depreciation 5,463,902 Total Operating Expenses 112,718,515 OPERATING INCOME (LOSS) (75,045,862)

NON-OPERATING REVENUES (EXPENSES) State Sources 22,810,695 Local Tax Revenue 33,588,471 Federal Grants and Contracts 22,370,595 Local Sources 391,405 Investment Income 1,096,217 Interest Expense (3,794,052) Total Non-operating Revenues (Expenses) 76,463,331

Increase in Net Assets before Capital Contributions 1,417,469

Capital Contributions 113,113

Increase in Net Assets 1,530,582

Net Assets - Beginning of Year 166,642,662

Net Assets - End of Year 168,173,244$

See accompanying notes to basic financial statements.16.

STATEMENT 3

MORAINE VALLEY COMMUNITY COLLEGECOMMUNITY COLLEGE DISTRICT NUMBER 524

STATEMENT OF CASH FLOWSYEAR ENDED JUNE 30, 2012

CASH FLOWS FROM OPERATING ACTIVITIESTuition and Fees 28,353,309$ Auxiliary Enterprises 7,384,332 Payments to: Employees (64,404,341) Suppliers (23,928,148) Students (8,366,379) Chargeback Revenue 100,252 Other Receipts (Payments) 2,640,041

Net Cash Provided (Used) from Operating Activities (58,220,934)

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIESState Sources 9,046,668 Property Taxes 33,560,695 Local Sources 391,405 Federal Grants & Contracts 22,977,778

Net Cash Provided (Used) by Noncapital Financing Activities 65,976,546

CASH FLOWS FROM CAPITAL FINANCING ACTIVITIESNet Proceeds From Bonds Issued To Refund Capital Debt 48,434,393 Construction Purchases from Bond Proceeds (1,782,937) Purchases of Capital Assets and Construction (6,987,660) Principal Paid on Capital Debt (2,170,000) Interest Paid on Capital Debt (3,819,219)

Net Cash Provided (Used) by Capital Financing Activities 33,674,577

CASH FLOWS FROM INVESTING ACTIVITIESProceeds from Sales and Maturities of Investments 100,209,143 Interest on Investments 1,467,206 Purchases of Investments (148,843,616)

Net Cash Provided (Used) by Investing Activities (47,167,267)

NET INCREASE (DECREASE) IN CASH (5,737,078)

CASH & CASH EQUIVALENTS - BEGINNING OF YEAR 18,670,448 CASH & CASH EQUIVALENTS - END OF YEAR 12,933,370$

See accompanying notes to basic financial statements.17.

STATEMENT 3

MORAINE VALLEY COMMUNITY COLLEGECOMMUNITY COLLEGE DISTRICT NUMBER 524

STATEMENT OF CASH FLOWSYEAR ENDED JUNE 30, 2012

RECONCILIATION OF NET OPERATING REVENUES/(EXPENSES) TO NET CASH PROVIDED(USED) FROM OPERATING ACTIVITIES:

Operating Income(Loss) (75,045,862)$ Adjustments to Reconcile Operating Income(Loss) to Net Cash

Provided(Used) by Operating Activities:Depreciation Expense 5,463,902 State University Retirement Payment 11,711,331 Changes in Assets and Liabilities:

Tuition and Fees Receivable, net 322,537 Inventories and Other Assets 182,215 Accounts Payable and Accrued Liabilities (80,191) Accrued Salaries and Wages (506,644) Prepaid Expenses (629,700) Unearned Tuition and Fees Revenue 361,478

Net Cash Provided(used) by Operating Activities (58,220,934)$

NONCASH INVESTING, CAPITAL, AND FINANCING ACTIVITIES:

Increase (decrease) in fair value of investments (213,910)$ State payment of construction 113,113 State on-behalf payments for fringe benefits 11,711,331 Bond issuance costs deducted from bond proceeds 779,812

See accompanying notes to basic financial statements.18.

MORAINE VALLEY COMMUNITY COLLEGE COMMUNITY COLLEGE DISTRICT NUMBER 524

NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012

(Continued)

19.

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies of Moraine Valley Community College - Community College District Number 524 (the College) conform to accounting principles generally accepted in the United States of America (GAAP) as applicable to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing accounting and financial reporting principles. These authoritative pronouncements are consistent with accounting practices prescribed or permitted by the Illinois Community College Board (ICCB). The following is a summary of the significant policies. The College’s reports are based on all applicable Government Accounting Standards Board (GASB) pronouncements as well as applicable Financial Accounting Standards Board (FASB) pronouncements issued on or before November 30, 1989, unless those pronouncements conflict with GASB pronouncements. The College has elected to not apply FASB pronouncements issued after the applicable date. Reporting Entity: The accompanying financial statements include only the accounts and transactions of the College following the criteria specified in Governmental Accounting Standards Board (GASB) Statement No. 14, The Financial Reporting Entity, as amended by Statement No. 39, Determining Whether Certain Organizations are Component Units.

The primary criterion for including a potential component unit within the reporting entity under GASB 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 (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 this criteria, the College is not financially accountable for any other organizations.

Additionally, the College implemented the provisions of GASB Statement No. 39, Determining Whether Certain Organizations are Component Units during the year ended June 30, 2005. This statement amends Statement No. 14, The Financial Reporting Entity, to provide guidance to determine whether certain organizations for which the College is not financially accountable should be reported as component units based on the nature and significance of their relationship with the College. Generally, it requires reporting, as a component unit, an organization that raises and holds significant economic resources for the direct benefit of a government unit. The Moraine Valley Foundation is a legally separate, tax exempt organization that acts as a fund-raising organization to supplement the resources that are available to the College in support of its programs. These resources are not considered significant to the operations of the College. Accordingly, the Foundation is not reported as a component unit of the College.

MORAINE VALLEY COMMUNITY COLLEGE COMMUNITY COLLEGE DISTRICT NUMBER 524

NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012

(Continued)

20.

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Basis of Presentation: GASB Statement No. 35 establishes standards for external financial reporting for public colleges and universities and requires resources to be classified for accounting and reporting purposes into the following four net asset categories:

Invested in Capital Assets, Net of Related Debt: Capital assets, net of accumulated depreciation and outstanding debt obligations, attributable to the acquisition, construction, or improvement of those assets.

Restricted Net Assets:

Nonexpendable - Net assets subject to externally imposed stipulations that they be

maintained permanently by the College.

Expendable - This includes resources that the College is legally or contractually obligated to spend in accordance with restrictions imposed by external third parties. When both restricted and unrestricted resources are available for use, it is the College’s policy to use restricted resources first, then unrestricted resources when they are needed.

Working Cash – This represents the principal balance of the Working Cash subfund, which pursuant to College Board of Trustees resolution and Illinois Compiled Statutes, is held in perpetuity.

Other – This includes primarily net assets restricted by grantors and unspent property tax receipts in the Audit and Liability Protection and Settlement subfunds.

Unrestricted Net Assets: Net assets that are not subject to externally imposed situations. These resources are used for transactions relating to the educational and general operations of the College and may be used at the discretion of the governing board to meet current expenses for any purpose.

GASB Statement No. 35 also requires the Statement of Net Assets, Revenues, Expenses and Changes in Net Assets and Cash Flows to be reported on an entity-wide basis. These basic financial statements report information on all of the activities of the College. For the most part, the effect of interfund activity has been removed from these statements.

Measurement Focus and Basis of Accounting: For financial statement reporting purposes, Moraine Valley Community College is considered a special purpose government engaged only in business-type activities as defined in GASB Statement No. 34. Accordingly, the basic financial statements of the College have been prepared using the flow of economic resources measurement focus and the accrual basis of accounting. Under the accrual basis, revenues are recognized in the accounting period in which they are earned, and expenses are recognized in the period incurred. All intra-agency and intra-fund transactions have been eliminated.

MORAINE VALLEY COMMUNITY COLLEGE COMMUNITY COLLEGE DISTRICT NUMBER 524

NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012

(Continued)

21.

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Non-exchange transactions, in which the College receives value without directly giving equal value in return, includes 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 are 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 College must provide local resources to be used for a specified purpose, and expenditure requirements, in which the resources are provided to the College on a reimbursement basis.

Capital Assets: All College activities are accounted for on a financial resources measurement focus. This means that all assets and all liabilities (whether current or noncurrent) associated with these activities are included on the Statement of Net Assets. The College’s operating statement presents increases (revenues) and decreases (expenses) in net total assets. Depreciation of all exhaustible capital assets used by proprietary funds is charged as an expense against their operations.

Capital assets include property, plant, equipment, and infrastructure assets, such as roads and sidewalks. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add value to the asset or materially extend the asset’s life are not capitalized.

Property, plant, and equipment of the College over the following thresholds are depreciated using the straight-line method over the following useful lives: Useful Life Thresholds Land Not Depreciated $ 25,000 Buildings 50 years 50,000 Building and Land Improvements 20 years 25,000 Equipment 10 years 10,000 Computer Technology 8 years 10,000

Included with the College’s computer technology capital assets, the College has capitalized an intangible asset, computer software. The College follows the same capitalization policy and estimated useful life for its intangible asset as it does for its computer technology capital assets. The College also amortizes the intangible asset utilizing the straight-line method. Depreciation expense for 2012 was $5,463,902.

MORAINE VALLEY COMMUNITY COLLEGE COMMUNITY COLLEGE DISTRICT NUMBER 524

NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012

(Continued)

22.

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Inventory: Inventories are reported at the lower of cost or market on the FIFO (first-in, first-out) basis. Inventories represent items held for resale by the College’s Auxiliary Enterprises. Unearned Revenues: Unearned revenues include: (1) tax levy passed that is legally restricted for the subsequent fiscal year, (2) amounts received for tuition and fee revenues collected during the fiscal year which relate to the subsequent fiscal year, and (3) amounts received from grant and contract sponsors that have not yet been earned. Federal Financial Assistance Programs: The College participates in federally funded PELL Grants, SEOG Grants, Federal Work-Study Program and Direct Loan Program. 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 Governments, and Non-Profit Organizations, and the Compliance Supplement. Property Tax Revenue Recognition: The College’s property taxes are levied each calendar year on all taxable real property located within the College’s district. Property taxes are recorded on an accrual basis of accounting. Pursuant to the Board of Trustee resolution, 50% of property taxes extended for the 2011 tax year and collected in 2012 are recorded as revenue in fiscal year 2012. The remaining revenue related to the 2011 tax year extension has been deferred and will be recorded as revenue in fiscal year 2013.

The County Assessor is responsible for assessment of all taxable real property within Cook County except for certain railroad property, which is assessed directly by the State. The County Clerk computes the annual tax for each parcel of real property and prepares tax books used by the County Collector as the basis for issuing tax bills to all taxpayers in the County. Property taxes are collected by the County Collector and are submitted to the County Treasurer, who remits to each unit its respective share of the collections. Taxes levied in one year become due and payable in two installments during the following year, generally on March 1 and August 30 of each year. The first installment is an estimated bill and is fifty-five percent of the prior year’s tax bill. The second installment is based on the current levy, assessment, equalization, and certificate to limit levy, if any; changes from the prior year will be reflected in the second installment bill.

Taxes must be levied by the last Tuesday in December for the following collection year. The levy becomes an enforceable lien against the property as of January 1 of the levy year. Tax bills are levied in December by passage of a Tax Levy Ordinance. Public Act 89-1 placed limitations on the annual growth of most local governments’ property tax collections. Currently, the limitation is five percent, or the rate of inflation, which ever is less. The personal property replacement tax is recorded on the accrual basis based on the amounts held by the State. Compensated Absences: The College records a liability for employees’ vacation leave earned, but not taken. Employees are allowed to carry over a limited number of vacation days from year to year. At June 30, 2012, the College has recorded a vacation liability of $1,335,397. The College considers $1,001,548 of this liability current as of June 30, 2012.

MORAINE VALLEY COMMUNITY COLLEGE COMMUNITY COLLEGE DISTRICT NUMBER 524

NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012

(Continued)

23.

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The College has no commitment for accumulated sick leave and no liability is recorded. Employees who retire are given credit for unused sick leave towards years of service in the State Universities Retirement System pension plan.

Classification of Revenues: Operating revenue includes activities that have the characteristics of exchange transactions, such as (1) student tuition and fees, net of scholarship discounts and allowances and (2) sales and services of auxiliary enterprises. Non-operating revenue includes activities that have the characteristics of non-exchange transactions, such as (1) local property taxes, (2) state appropriations, and (3) most federal, state and local grants and contracts.

Cash and Investments

Cash and Cash Equivalents - For purposes of the Statement of Cash Flows, the College considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents.

Investments - In accordance with Governmental Accounting Standards Board Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, non-negotiable certificates of deposit and investments with a maturity of less than one year at date of purchase are stated at amortized cost. All other investments are stated at fair value.

On-Behalf Payments for Fringe Benefits and Salaries: The College recognizes as revenues and expenses contributions made by the State of Illinois to the State Universities Retirement Systems on behalf of the College’s employees. In fiscal year 2012, the State made contributions of $11,711,331. (see Note 7 and Note 8).

Use of Estimates: College management has made a number of estimates and assumptions relating to the reporting of assets and liabilities to prepare these financial statements in conformity with accounting principles generally accepted in the United States of America. Actual results could differ. Early Retirement Incentive Program: In addition to the retirement benefits provided by the College described in Note 7, the College provides voluntary retirement benefits to certain classes of employees. These include employer paid voluntary retirement stipends as well as a health care supplement. Faculty and Administrative & Professional Staff – Full-time faculty and professional staff who are at least 55 years of age, have at least 15 years of continuous service with the College, and are able to retire according to the State University Retirement System are eligible for early retirement remuneration. Compensation will be made in accordance with employment agreements.

MORAINE VALLEY COMMUNITY COLLEGE COMMUNITY COLLEGE DISTRICT NUMBER 524

NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012

(Continued)

24.

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 2002-2006 The full-time faculty and professional staff retirement incentive program (RIP) consists of a stipend equal to 55% of the participant’s final base salary to be paid over a three year period and a $2,000 insurance supplement for eight years to subsidize the state retiree health insurance program. Faculty participation is limited to 25 participants over the length of the contract and professional staff participation is limited to 15 participants. 2006-2011 The full-time faculty and professional staff’s post retirement benefit program consists of a $5,000 insurance supplement for six years to subsidize the state retiree health insurance program. Faculty participation limited to 23 participants over the length of the contract and professional staff participation limited to 8 participants. 2011-2013 The full-time faculty and professional staff’s post retirement benefit program consists of a $5,000 insurance supplement for five years to subsidize the state retiree health insurance program. Faculty participation limited to 4 participants over the length of the contract and professional staff participation limited to 3 participants. Support Staff and Administrative Classified Staff – Support staff and administrative classified staff who are at least 55 years of age, have at least 14 years of continuous service with the College, and are able to retire according to the State University Retirement System are eligible for early retirement remuneration. Compensation will be made in accordance with employment agreements. 2006-2011 Support staff and administrative classified staff are eligible for a $3,900 insurance supplement for five years limited to 15 support staff and 4 classified employees. 2011-2013 Support staff and administrative classified staff are eligible for a $3,900 insurance supplement for five years limited to 5 support staff and 3 classified employees. As of June 30, 2012, the College was obligated to pay 67 employees as part of the plans with payments due through 2018. The net present value of the College’s liability at June 30, 2012 was $740,900. The College considers $229,810 of this liability current as of June 30, 2012.

MORAINE VALLEY COMMUNITY COLLEGE COMMUNITY COLLEGE DISTRICT NUMBER 524

NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012

(Continued)

25.

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) New Accounting Pronouncements: In November 2010, the GASB issued Statement No. 60, Accounting and Financial Reporting for Service Concession Arrangements. The Statement improves financial reporting by addressing issues related to service concession arrangements, which are arrangements between a transferor (government) and an operator (governmental or non-governmental entity) in which (1) the transferor conveys to an operator the right and related obligation to provide services through the use of infrastructure in exchange for significant consideration and (2) the operator collects and is compensated by fees from third parties. This Statement is effective for the College’s financial year ending June 30, 2013. The College is currently not engaged in transferor-operator service concession arrangements, therefore implementation of this statement will have no impact. In November 2010, the GASB issued Statement No. 61, The Financial Reporting Entity: Omnibus. The Statement improves financial reporting for a governmental financial reporting entity. The requirements of Statement No. 14, The Financial Reporting Entity, and the related financial reporting requirements of Statement No. 34, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments, were amended to better meet user needs and to address reporting entity issues. This Statement is effective for the College’s financial year ending June 30, 2013. The College has considered the impacts of implementing this Statement and has determined that the implementation will not have a significant effect on its financial statements. In December 2010, the GASB issued Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements. The Statement incorporates into the GASB’s authoritative literature certain accounting and financial reporting guidance that is included in the following pronouncements issued on or before November 30, 1989, which does not conflict with or contradict GASB pronouncements: (1) Financial Accounting Standards Board (FASB) Statements and Interpretations; (2) Accounting Principles Board Opinions; and (3) Accounting Research Bulletins of the American Institute of Certified Public Accountants’ (AICPA) Committee on Accounting Procedure. This Statement is effective for the College’s financial year ending June 30, 2013. The College plans to implement this codification for the year ending June 30, 2013. In June 2011, the GASB issued Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position. This Statement provides a new statement of net position format to report all assets, deferred outflows of resources, liabilities, deferred inflows of resources, and net position (which is the net residual amount of the other elements). This Statement requires that deferred outflows of resources and deferred inflows of resources be reported separately from assets and liabilities. This Statement also amends certain provisions of GASB Statement No. 34, Basic Financial Statements -- and Management’s Discussion and Analysis -- for State and Local Governments, and related pronouncements to reflect the residual measure in the statement of financial position as net position, rather than net assets. This Statement is effective for the College’s financial year ending June 30, 2013. The College plans to implement the new reporting requirements for the year ending June 30, 2013.

MORAINE VALLEY COMMUNITY COLLEGE COMMUNITY COLLEGE DISTRICT NUMBER 524

NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012

(Continued)

26.

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) In June 2011, the GASB issued Statement No. 64, Derivative Instruments: Application of Hedge Accounting Termination Provisions (an amendment of GASB Statement No. 53). This Statement clarifies that when certain conditions are met, the use of hedge accounting should not be terminated. When all of the conditions specified by the Statement exist, the GASB believes that the hedging relationship continues and hedge accounting should continue to be applied. This Statement is effective for the College’s financial year ending June 30, 2012. The College has considered the impacts of implementing this Statement and has determined that the implementation did not have a significant effect on its financial statements. In March 2012, the GASB issued Statement No. 65, Items Previously Reported as Assets and Liabilities. This Statement establishes accounting and financial reporting standards that reclassify, as deferred outflows of resources or deferred inflows of resources, certain items that were previously reported as assets and liabilities and recognizes, as outflows of resources or inflows of resources, certain items that were previously reported as assets and liabilities. This Statement also provides other financial reporting guidance related to the impact of the financial statement elements deferred outflows of resources and deferred inflows of resources, such as changes in the determination of the major fund calculations and limiting the use of the term deferred in financial statement presentations. The provisions of this Statement are effective for the College’s financial year ending June 30, 2014. The College plans to implement the new reporting requirements for the year ending June 30, 2013. In March 2012, the GASB issued Statement No. 66, Technical Corrections – 2012, an amendment of GASB Statements No. 10 and No. 62. The objective of this Statement is to improve accounting and financial reporting for a governmental financial reporting entity by resolving conflicting guidance that resulted from the issuance of two pronouncements, Statements No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, and No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements. This Statement amends Statement 62 by modifying the specific guidance on accounting for (1) operating lease payments that vary from a straight-line basis, (2) the difference between the initial investment (purchase price) and the principal amount of a purchased loan or group of loans, and (3) servicing fees related to mortgage loans that are sold when the stated service fee rate differs significantly from a current (normal) servicing fee rate. These changes clarify how to apply Statement No. 13, Accounting for Operating Leases with Scheduled Rent Increases, and result in guidance that is consistent with the requirements in Statement No. 48, Sales and Pledges of Receivables and Future Revenues and Intra-Entity Transfers of Assets and Future Revenues, respectively. The provisions of this Statement are effective for the College’s financial year ending June 30, 2014. Management has not determined what impact, if any, this GASB statement might have on its financial statements.

MORAINE VALLEY COMMUNITY COLLEGE COMMUNITY COLLEGE DISTRICT NUMBER 524

NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012

(Continued)

27.

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Concluded) In June 2012, the GASB issued Statement 67, Financial Reporting for Pension Plans. This Statement replaces the requirements of Statement No. 25, Financial Reporting for Defined Benefit Pension Plans and Note Disclosures for Defined Contribution Plans and Statement 50 as they relate to pension plans that are administered through trusts or similar arrangements meeting certain criteria. The Statement builds upon the existing framework for financial reports of defined benefit pension plans, which includes a statement of fiduciary net position (the amount held in a trust for paying retirement benefits) and a statement of changes in fiduciary net position. Statement 67 enhances note disclosures and RSI for both defined benefit and defined contribution pension plans. Statement 67 also requires the presentation of new information about annual money-weighted rates of return in the notes to the financial statements and in 10-year RSI schedules. The provisions of this Statement are effective for the College’s fiscal year ending June 30, 2014. Management has not determined what impact, if any, this GASB statement might have on its financial statements. In June 2012, the GASB issued Statement 68, Accounting and Financial Reporting for Pensions. This Statement replaces the requirements of Statement No. 27, Accounting for Pensions by State and Local Governmental Employers and Statement No. 50, Pension Disclosures, as they relate to governments that provide pensions through pension plans administered as trusts or similar arrangements that meet certain criteria. Statement 68 requires governments providing defined benefit pensions to recognize their long-term obligation for pension benefits as a liability for the first time, and to more comprehensively and comparably measure the annual costs of pension benefits. The Statement also enhances accountability and transparency through revised and new note disclosures and required supplementary information (RSI). The provisions of this Statement are effective for the College’s financial year ending June 30, 2015. Management has not determined what impact, if any, this GASB statement might have on its financial statements. NOTE 2 - BUDGET AND BUDGETARY ACCOUNTING The College follows these procedures in establishing the budgetary data reflected in the financial statements:

A. Management submits to the Board of Trustees a proposed operating budget for the fiscal year. The operating budget includes proposed expenditures and the means of financing them.

B. Budget hearings are conducted. C. The budget is legally enacted through the passage of an ordinance. D. The President may from time to time make transfers between the various items in any fund

not exceeding in the aggregate 10% of the total of any fund set forth in the budget. E. The Board may from time to time amend the budget by the same procedure as is herein

provided for its original adoption. Budgets are adopted on a basis consistent with GAAP. The budget was adopted and approved by the Board of Trustees on September 21, 2011. Appropriations (i.e., budget) lapse at year-end.

MORAINE VALLEY COMMUNITY COLLEGE COMMUNITY COLLEGE DISTRICT NUMBER 524

NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012

(Continued)

28.

NOTE 3 - INSURANCE AND RISK MANAGEMENT The College participates in the Illinois Community College Risk Management Consortium (Consortium), which was established in 1981 by several Chicago area community colleges as a means of reducing the cost of general liability insurance. The Consortium is a public entity risk pool currently operating as a common risk management and insurance program for the member colleges. The main purpose of the Consortium is to jointly self-insure certain risks up to an agreed upon retention limit and to obtain excess catastrophic coverage and aggregate stop-loss reinsurance over the selected retention limit. Coverages include all property, excess liability ($21,000,000), and workers’ compensation. No settlement has exceeded coverage since establishment of the Consortium. The College joined the consortium in fiscal year 2004. Since the Consortium requests initial payments to cover substantially any losses to be incurred for that policy year, the College anticipates no future liabilities for incurred losses. The policy is annual and renewable on July 1. The College’s level of coverage has not changed for the past two years. On July 1, 2011, the College joined the Community College Health Care Consortium which provides employees insurance coverage for medical and prescription drugs. The College pays the Community College Health Care Consortium a monthly premium based on the number of participants and the type of coverage that has been elected. The College maintains voluntary, fully-insured dental coverage through a third-party administrator for its dental insurance. The College currently allocates all expenses associated with the employee health plans to each of the College’s individual subfunds. Claims and expenses are reported when incurred. To limit its exposure of risk, the College maintains a specific excess policy that provides coverage in excess of $125,000 per employee for medical claims. The College’s level of coverage has not changed for the past three years, and the amount of settlements has not exceeded insurance coverage in each of the past three years. Prior to July 1, 2011, the College utilized the services of Blue Cross/Blue Shield for their health program. Changes in the balances of health care claim liabilities during the past two years are as follows. This liability, if present at yearend, is included within accounts payable on the Statement of Net Assets. 2012 2011

Liability for health care costs at July 1 $ 570,696 $ 1,686,518 Incurred Claims 8,915,666 5,809,909 Payments on claims (9,486,362) (6,925,731) Liability for health care costs at June 30 $ - $ 570,696

The amount of premiums paid by the College to the Community College Health Care Consortium exceeded the amount of claims incurred during fiscal year 2012 and estimated amount of claims incurred but not reported as of June 30, 2012, resulting in no additional liabilities for incurred losses as of yearend.

MORAINE VALLEY COMMUNITY COLLEGE COMMUNITY COLLEGE DISTRICT NUMBER 524

NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012

(Continued)

29.

NOTE 4 - DEPOSITS AND INVESTMENTS

Cash: The carrying amount of cash was $7,182,780 at June 30, 2012, while the bank balances were $13,979,310. As of June 30, 2012, all bank account balances were either insured by the Federal Deposit Insurance Corporation (FDIC) for $250,000, or collateralized with securities of the United States Government, United States Government Agencies, Certificates of Deposit or with letters of credit issued by the Federal Home Loan Bank held in the College’s name by financial institutions acting as the College’s agent. Investments: The investments which the College may purchase are limited by Illinois law to the following (1) securities which are fully guaranteed by the U.S. Government as to principal and interest; (2) certain U.S. Government Agency securities; (3) certificates of deposit or time deposits of banks and savings and loan associations which are insured by a Federal corporation; (4) certain short-term obligations of corporations (commercial paper) rated not less than A-1 or P-1 or an equivalent rating by at least two of the major rating services; (5) fully collateralized repurchase agreements; (6) the Illinois Public’s Treasurer’s Investment Pool; (7) the Illinois School District Liquid Asset Fund Plus; (8) Municipal Bonds rated within the three highest general classifications established by at least one major rating service; and (9) money market accounts and certain other instruments. Certificates of Deposit: Certificates of Deposit amounted to $56,934,565 at June 30, 2012. In accordance with College policy, Certificates of Deposit were collateralized with securities of the U.S. Government in an amount equal to 110% of the funds on deposit. All investment collateral is held in safekeeping in the College’s name by financial institutions acting as the College’s agent. Collateral is priced to market monthly and monitored regularly with additional collateral requested as necessary. The following schedule reports the fair values and maturities (using the segmented time distribution method) for the College’s certificates of deposits and investments at June 30, 2012.

Less than One to Six to Greater thanType Fair Value One Year Five Years Ten years Ten YearsCertificates of Deposit 56,934,565$ 55,683,089$ 1,251,476$ -$ -$ Investments:

U.S. Agencies 21,959,632 - 21,959,632 - - Municipal Bonds 48,898,668 - 9,723,409 39,175,259 - Repurchase Agreements 5,579,749 5,579,749 - - - Money Market Mutual Fund 2,205,279 202,007 2,003,272 - -

Total 135,577,893$ 61,464,845$ 34,937,789$ 39,175,259$ -$

MaturitiesInvestment

MORAINE VALLEY COMMUNITY COLLEGE COMMUNITY COLLEGE DISTRICT NUMBER 524

NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012

(Continued)

30.

NOTE 4 - DEPOSITS AND INVESTMENTS (Continued) Interest Rate Risk: The College’s formal investment policy, to the extent possible, attempts to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the College will not directly invest in securities maturing more than five years from the date of purchase. Reserve funds may be invested in securities exceeding one year if the maturity of such investments are made to coincide as nearly as practicable with the expected use of the funds. Except for the investment of bond proceeds and capital construction funds, no more than 40% of the College’s total investments shall be invested in securities maturing more than one year from the date of purchase. The following table summarizes the estimated effects of hypothetical increases in interest rates on investment fair values. It assumes that the increases occur immediately and uniformly to each type of investment. The hypothetical changes in market interest rates do not reflect what could be deemed best- or worst-case scenarios. Variations in market interest rates could produce significant changes in the timing of repayments due to any prepayment options. For these reasons, actual results might differ from those reflected in the table.

Fair Value June 30, 2012 $ 21,959,632 Fair value of portfolio after basis point increase of:

100 points 21,191,045 200 points 20,422,458 300 points 19,653,871 Credit Risk: The College has no formal policy relating to specific investment related risk. Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital, as well as the probable income to be derived. The standard of prudence to be used by investment officials shall be the “prudent person” standard and shall be applied in the context of managing an overall portfolio. The primary objective, in order of priority, shall be:

• Legality – conformance with federal, state and other legal requirements • Safety – preservation of capital and protection of investment principal • Liquidity – maintenance of sufficient liquidity to meet operating requirements • Yield – attainment of market rates of return

The portfolio is reviewed periodically as to its effectiveness in meeting the College’s needs for safety, liquidity, rate of return, diversification and its general performance.

MORAINE VALLEY COMMUNITY COLLEGE COMMUNITY COLLEGE DISTRICT NUMBER 524

NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012

(Continued)

31.

NOTE 4 - DEPOSITS AND INVESTMENTS (Continued) Credit ratings for the College’s investments in debt securities as described by Standard & Poor’s and Moody’s at June 30, 2012 (excluding investments in U.S. Treasuries which are not considered to have credit risk) are as follows:

Investment Type AAA/Aaa AA/Aa2 A/A2U.S. Agencies 100% 0% 0%Repurchase Agreements 100% 0% 0%Money Market Mutual Fund 100% 0% 0%Municipal Bonds 0% 0% 100%

Disclosure Ratings for Debt Securities (S&P/Moody's)(As a percentage of total fair value for debt securities)

Custodial Credit Risk: For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the College will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The following is the College’s policy relating to custodial credit risk.

All security transactions, including collateral for repurchase agreements, entered into by the College shall be conducted on a delivery-versus-payment (DVP) basis. Securities will be held by an independent third party custodian designated by the Treasurer. The safekeeping department of the bank designated will be considered to be a third party for the purposes of safekeeping of securities. Securities purchased through a broker/dealer may be held by the broker as long as they are registered in the name of the College and they meet other credit requirements. Banks that place purchased securities or securities that are provided as collateral by that bank into that bank’s Trust Department shall be considered to have complied with the third party safekeeping requirements. Financial institutions must collateralize all deposits in excess of $250,000 to 110% of market value.

Acceptable collateral will include the following:

1. Bonds, notes, certificates of indebtedness, treasury bills, or other securities now or hereafter issued which are guaranteed by the full faith and credit of the United States of America as to principal and interest

2. Bonds issued by Moraine Valley Community College 3. Obligations of United States Government Agencies

All investments requiring collateral in accordance with the above section shall be witnessed by a written agreement and held at an independent, third-party institution in the name of the College. Except for the College’s investment in municipal bonds, the College was fully collateralized as of June 30, 2012.

MORAINE VALLEY COMMUNITY COLLEGE COMMUNITY COLLEGE DISTRICT NUMBER 524

NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012

(Continued)

32.

NOTE 4 - DEPOSITS AND INVESTMENTS (Concluded)

The only exception to this collateralization policy is limited to funds invested for capital construction projects which the College Treasurer will be authorized to determine appropriate collateralization levels based on cash flow needs necessary for the College to complete construction projects. Concentration of Credit Risk: The total deposits in any one financial institution may not exceed 75% of the capital stock and surplus of that institution, in accordance with the most recent call report of that institution. Further, unless specifically authorized by the Board of Trustees, the Treasurer shall not have deposits in excess of $22,000,000 in any one financial institution regardless of the calculation mentioned in this section.

More than 5% of investments (other than United States Government and United States Government Guaranteed Obligations) are invested in the following: Investment Percentage Federal National Mortgage Association 8.75% State of Illinois Municipal Bonds 35.19%

The following is a reconciliation of Deposits and Investments to the Statement of Net Assets:

June 30, 2012Deposits and InvestmentsCash 7,182,780$ Certificates of Deposit 56,934,565 Investments

Municipal Bonds 48,898,668 U.S. Agencies 21,959,632 Repurchase Agreements 5,579,749 Money Market Mutual Fund 2,205,279

Totals 142,760,673$

Statement of Net AssetsCash and Cash Equivalents 12,933,370$ Short-term Investments 55,714,257 Long-term Investments 24,960,761 Restricted Investments for Debt Service 49,152,285 Totals 142,760,673$

MORAINE VALLEY COMMUNITY COLLEGE COMMUNITY COLLEGE DISTRICT NUMBER 524

NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012

(Continued)

33.

NOTE 5 - LONG TERM OBLIGATIONS

A schedule of the College’s long-term debt activity for the year ended June 30, 2012 is as follows:

Balance Balance Due withinJuly 1, 2011 Additions Retirements June 30, 2012 one year

General Obligation Bonds 78,850,000$ 48,995,000$ (2,170,000)$ 125,675,000$ 2,930,000$ Add: Bond Premium 3,340,100 219,205 (181,949) 3,377,356 - Compensated Absences 1,416,653 - (81,256) 1,335,397 1,001,548 Retirement Benefit Oblig. 742,112 - (1,212) 740,900 229,810 Total 84,348,865$ 49,214,205$ (2,434,417)$ 131,128,653$ 4,161,358$

In addition to the principal retired during the year, the College paid $3,819,219 of interest expense on General Obligation Bonds. The General Obligation Bonds Repayment Schedule at June 30, 2012 is as follows: In December 2006, the College issued Community College Bonds Series 2006 in the amount of $10,000,000. These proceeds were used to i) build, equip, alter and repair buildings of the District, including additional facilities for computer technology upgrades, job training and retraining programs, new and improved science and other instructional facilities, and additional facilities for student services and ii) paying certain costs associated with the issuance of the bonds. Repayment of these bonds will be funded through an ad valorem tax levy on all of the taxable property located within the College district.

Bond Issue Date December 12, 2006 Current Portion $ - Long-term Portion $10,000,000 Interest Rate 4.000% to 4.375% Final Payment Date December 1, 2026 Payment Dates June 1 and December 1, as set forth below

Year Ending TotalJune 30 Principal Interest Debt Service

2013 -$ 432,025$ 432,025$ 2014 - 432,025 432,025 2015 - 432,025 432,025 2016 - 432,025 432,025 2017 - 432,025 432,025

2018 - 2022 - 2,160,125 2,160,125 2023 - 2027 10,000,000 1,885,713 11,885,713

Totals 10,000,000$ 6,205,963$ 16,205,963$

MORAINE VALLEY COMMUNITY COLLEGE COMMUNITY COLLEGE DISTRICT NUMBER 524

NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012

(Continued)

34.

NOTE 5 - LONG TERM OBLIGATIONS (Continued) In January 2007, the College issued Community College Bonds Series 2007 in the amount of $5,250,000. These proceeds were used to i) build, equip, alter and repair buildings of the District, including additional facilities for computer technology upgrades, job training and retraining programs, new and improved science and other instructional facilities, and additional facilities for student services and ii) paying certain costs associated with the issuance of the bonds. Repayment of these bonds will be funded through an ad valorem tax levy on all of the taxable property located within the College district.

Bond Issue Date January 11, 2007 Current Portion $100,000 Interest Rate 4.00% to 5.00% Final Payment Date December 1, 2012 Payment Dates June 1 and December 1, as set forth below

Year Ending TotalJune 30 Principal Interest Debt Service

2013 100,000$ 2,000$ 102,000$

In November 2007, the College issued Community College Bonds Series 2007B in the amount of $73,750,000. These proceeds were used to i) build, equip, alter and repair buildings of the District, including additional facilities for computer technology upgrades, job training and retraining programs, new and improved science and other instructional facilities, and additional facilities for student services and ii) paying certain costs associated with the issuance of the bonds. Repayment of these bonds will be funded through an ad valorem tax levy on all of the taxable property located within the College district.

Bond Issue Date November 8, 2007 Current Portion $2,570,000 Long-term Portion $64,010,000 Interest Rate 3.75% to 5.00% Final Payment Date December 1, 2025 Payment Dates June 1 and December 1, as set forth below

Year Ending TotalJune 30 Principal Interest Debt Service

2013 2,570,000$ 3,158,625$ 5,728,625$ 2014 2,780,000 3,051,625 5,831,625 2015 2,950,000 2,937,025 5,887,025 2016 3,520,000 2,798,825 6,318,825 2017 3,675,000 2,636,938 6,311,938

2018 - 2022 24,370,000 9,952,750 34,322,750 2023 - 2026 26,715,000 2,708,875 29,423,875

Totals 66,580,000$ 27,244,663$ 93,824,663$

MORAINE VALLEY COMMUNITY COLLEGE COMMUNITY COLLEGE DISTRICT NUMBER 524

NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012

(Continued)

35.

NOTE 5 - LONG TERM OBLIGATIONS (Continued) In April 2012, the College issued Community College Bonds Series 2012A in the amount of $9,505,000 in order to advance refund a portion of the District’s outstanding General Obligation Community College Bonds, Series 2007B. A portion of the bond proceeds were used to fund an escrow with bond obligations of the State of Illinois. Assuming the Illinois Bonds included in the escrow are not called for redemption prior to their respective payment or maturity dates and assuming principal and interest on all the Illinois Bonds are paid on a timely basis, the principal of and interest to be earned on the Illinois Bonds will be sufficient (i) to pay when due the interest on the refunded Series 2007B bonds, and (ii) to pay principal of the refunded Series 2007B bonds on the redemption date. The remaining bond proceeds were used to pay costs of issuing the bonds. Because the escrow is funded with Illinois Bonds, the refunded Series 2007B bonds will be considered to be outstanding debt for purposes of the College’s statutory debt limit. In addition, the Illinois Bonds are not a type of risk-free monetary asset that is required to accomplish an in-substance defeasance of the refunded bonds in accordance with GASB Statement 7. Therefore, the outstanding amount of the Series 2007B bonds and the Series 2012A bonds are both presented on the statement of net assets as long-term obligations. Repayment of these bonds will be funded through an ad valorem tax levy on all of the taxable property located within the College district.

Bond Issue Date April 3, 2012 Current Portion $ - Long-term Portion $9,505,000 Interest Rate 2.00% to 3.00% Final Payment Date December 1, 2025

Payment Dates June 1 and December 1, as set forth below

Year Ending TotalJune 30 Principal Interest Debt Service

2013 -$ 279,650$ 279,650$ 2014 - 279,650 279,650 2015 - 279,650 279,650 2016 - 279,650 279,650 2017 - 279,650 279,650

2018 - 2022 695,000 1,363,275 2,058,275 2023 - 2026 8,810,000 840,600 9,650,600

Totals 9,505,000$ 3,602,125$ 13,107,125$

MORAINE VALLEY COMMUNITY COLLEGE COMMUNITY COLLEGE DISTRICT NUMBER 524

NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012

(Continued)

36.

NOTE 5 - LONG TERM OBLIGATIONS (Continued) In February 2012, the College issued Community College Bonds Series 2012B in the amount of $15,885,000 in order to advance refund a portion of the District’s outstanding General Obligation Community College Bonds, Series 2007B. A portion of the bond proceeds were used to fund an escrow with bond obligations of the State of Illinois. Assuming the Illinois Bonds included in the escrow are not called for redemption prior to their respective payment or maturity dates and assuming principal and interest on all the Illinois Bonds are paid on a timely basis, the principal of and interest to be earned on the Illinois Bonds will be sufficient (i) to pay when due the interest on the refunded Series 2007B bonds, and (ii) to pay principal of the refunded Series 2007B bonds on the redemption date. The remaining bond proceeds were used to pay costs of issuing the bonds. Because the escrow is funded with Illinois Bonds, the refunded Series 2007B bonds will be considered to be outstanding debt for purposes of the College’s statutory debt limit. In addition, the Illinois Bonds are not a type of risk-free monetary asset that is required to accomplish an in-substance defeasance of the refunded bonds in accordance with GASB Statement 7. Therefore, the outstanding amount of the Series 2007B bonds and the Series 2012B bonds are both presented on the statement of net assets as long-term obligations. Repayment of these bonds will be funded through an ad valorem tax levy on all of the taxable property located within the College district.

Bond Issue Date February 22, 2012 Current Portion $260,000 Long-term Portion $15,625,000 Interest Rate 0.89% to 4.00% Final Payment Date December 1, 2020 Payment Dates June 1 and December 1, as set forth below

Year Ending Total

June 30 Principal Interest Debt Service2013 260,000$ 354,899$ 614,899$ 2014 175,000 350,549 525,549 2015 180,000 347,998 527,998 2016 180,000 346,198 526,198 2017 185,000 343,894 528,894

2018 - 2021 14,905,000 874,317 15,779,317 Totals 15,885,000$ 2,617,855$ 18,502,855$

MORAINE VALLEY COMMUNITY COLLEGE COMMUNITY COLLEGE DISTRICT NUMBER 524

NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012

(Continued)

37.

NOTE 5 - LONG TERM OBLIGATIONS (Continued) In May 2012, the College issued Community College Bonds Series 2012C in the amount of $23,605,000 in order to advance refund a portion of the District’s outstanding General Obligation Community College Bonds, Series 2007B. A portion of the bond proceeds were used to fund an escrow with bond obligations of the State of Illinois. Assuming the Illinois Bonds included in the escrow are not called for redemption prior to their respective payment or maturity dates and assuming principal and interest on all the Illinois Bonds are paid on a timely basis, the principal of and interest to be earned on the Illinois Bonds will be sufficient (i) to pay when due the interest on the refunded Series 2007B bonds, and (ii) to pay principal of the refunded Series 2007B bonds on the redemption date. The remaining bond proceeds were used to pay costs of issuing the bonds. Because the escrow is funded with Illinois Bonds, the refunded Series 2007B bonds will be considered to be outstanding debt for purposes of the College’s statutory debt limit. In addition, the Illinois Bonds are not a type of risk-free monetary asset that is required to accomplish an in-substance defeasance of the refunded bonds in accordance with GASB Statement 7. Therefore, the outstanding amount of the Series 2007B bonds and the Series 2012C bonds are both presented on the statement of net assets as long-term obligations. Repayment of these bonds will be funded through an ad valorem tax levy on all of the taxable property located within the College district.

Bond Issue Date May 23, 2012 Current Portion $ - Long-term Portion $23,605,000 Interest Rate 0.79% to 3.25% Final Payment Date December 1, 2024 Payment Dates June 1 and December 1, as set forth below

Year Ending TotalJune 30 Principal Interest Debt Service

2013 -$ 670,723$ 670,723$ 2014 315,000 678,926 993,926 2015 315,000 676,122 991,122 2016 320,000 672,729 992,729 2017 320,000 668,755 988,755

2018 - 2022 6,215,000 3,209,816 9,424,816 2023 - 2025 16,120,000 683,194 16,803,194

Totals 23,605,000$ 7,260,265$ 30,865,265$

MORAINE VALLEY COMMUNITY COLLEGE COMMUNITY COLLEGE DISTRICT NUMBER 524

NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012

(Continued)

38.

NOTE 5 - LONG TERM OBLIGATIONS (Concluded) Operating Leases: In fiscal year 2010, the College entered into a five-year lease agreement with Xerox Corporation. The lease allowed the College to replace copiers throughout the campus. The terms of the agreement call for a standard monthly fee unique to each machine plus additional charges for copies made above the allotted amount. The last scheduled payment date occurs on December 31, 2014. Rental expense under the operating lease was $251,669 for the year ended June 30, 2012. The following is a schedule of future lease payments under the operating lease as of June 30, 2012. Year ending June 30:

2013 $ 226,827 2014 201,986 2015 100,993 Total $ 529,806

In fiscal year 2012, the College entered into a three-year lease agreement with Xerox Corporation. The lease allowed the College to replace copiers throughout the campus. The terms of the agreement call for a standard monthly fee unique to each machine plus additional charges for copies made above the allotted amount. The last scheduled payment date occurs on March 31, 2015. Rental expense under the operating lease was $14,706 for the year ended June 30, 2012. The following is a schedule of future lease payments under the operating lease as of June 30, 2012. Year ending June 30:

2013 $ 57,079 2014 57,079 2015 42,373 Total $ 156,531

Compensated Absences: See Note 1. Early Retirement Incentive Obligation: See Note 1.

MORAINE VALLEY COMMUNITY COLLEGE COMMUNITY COLLEGE DISTRICT NUMBER 524

NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012

(Continued)

39.

NOTE 6 - CAPITAL ASSETS

The following table presents the changes in the various capital asset categories for fiscal year 2012:

Balance BalanceJuly 1, 2011 Additions Retirements June 30, 2012

Capital Assets, not Being Depreciated: Land 5,848,757$ -$ -$ 5,848,757$ Construction in Progress 1,796,072 4,202,006 (1,794,631) 4,203,447

Capital Assets, Being Depreciated: Land Improvements 11,873,007 1,182,745 - 13,055,752 Buildings and Improvements 174,301,177 4,866,610 - 179,167,787 Equipment 6,921,755 250,972 (1,774,308) 5,398,419 Technology 6,245,183 176,008 (308,268) 6,112,923 Total Capital Assets Being Depreciated 199,341,122 6,476,335 (2,082,576) 203,734,881

Total Cost 206,985,951$ 10,678,341$ (3,877,207)$ 213,787,085$

A summary of changes in the accumulated depreciation by asset categories for fiscal year 2012 follows:

Balance BalanceJuly 1, 2011 Additions Retirements June 30, 2012

Land Improvements 4,653,478$ 477,994$ -$ 5,131,472$ Buildings and Improvements 43,937,748 3,896,117 - 47,833,865 Equipment 3,911,569 383,480 (1,194,230) 3,100,819 Technology 1,446,739 706,311 (308,268) 1,844,782 Total Accumulated Depreciation 53,949,534$ 5,463,902$ (1,502,498)$ 57,910,938$

Net Capital Assets 153,036,417$ 155,876,147$

MORAINE VALLEY COMMUNITY COLLEGE COMMUNITY COLLEGE DISTRICT NUMBER 524

NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012

(Continued)

40.

NOTE 7 - STATE UNIVERSITIES RETIREMENT SYSTEM

Plan Description: The College’s employees contribute 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. 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 accessing the website www.SURS.org or calling 1-800-275-7877. 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 rate for 2012 was 34.51%, 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 ending June 30, 2012, 2011, and 2010 were $11,522,570, $8,957,450, and $7,574,332, respectively. The College contributions were in accordance with the actuarially determined requirement for each year. NOTE 8 – RETIREE HEALTH PLAN Plan Description: In addition to the pension plan described in Note 7, the College 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 Healthcare and Family Services, 201 South Grand Avenue East, Springfield, Illinois 62763. The Act requires every active contributor (employee) of SURS to contribute 0.5% of covered payroll and every community college district to contribute 0.5% 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. The employer contributions to the Plan for the years ending June 30, 2012, 2011, and 2010 were $188,761, $187,855, and $172,374, respectively. The College contributions were equal to the required contributions for each year.

MORAINE VALLEY COMMUNITY COLLEGE COMMUNITY COLLEGE DISTRICT NUMBER 524

NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012

(Concluded)

41.

NOTE 8 – RETIREE HEALTH PLAN (Concluded) As disclosed in Note 1, 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. NOTE 9 – CONTINGENT LIABILITIES AND COMMITMENTS The College had construction commitments of $4,205,077 as part of the campus expansion project as of June 30, 2012. The District has received federal and state grants for specific purposes that are subject to review and audit by the grantor agencies. Such audits could lead to requests for reimbursements to the grantor agency for expenses disallowed under terms of the grants. Management believes such disallowances, if any, would be immaterial.

MORAINE VALLEY COMMUNITY COLLEGE COMMUNITY COLLEGE DISTRICT NUMBER 524

SUPPLEMENTARY INFORMATION June 30, 2012

42.

The following supplementary information is maintained for management information purposes.

EXHIBIT 1

Salaries Benefits Services Supplies Utilities Other TotalsInstruction 26,704,779$ 9,033,960$ 578,106$ 1,056,282$ 22,441$ 766,035$ 38,161,603$ Academic Support 3,932,369 1,756,200 319,741 935,957 2,035 207,560 7,153,862 Student Services 6,198,487 2,627,672 638,947 541,185 - 393,010 10,399,301 Public Services 194,473 87,820 88,614 21,192 - 38,745 430,844 Operations and Maintenance of Plant 3,754,476 1,798,088 3,510,221 847,886 1,841,938 222,719 11,975,328 Institutional Support 8,868,852 5,651,688 2,645,268 1,910,023 70,732 1,478,062 20,624,625 Auxiliary Enterprises 3,533,844 1,466,320 589,874 4,184,947 32,426 335,260 10,142,671 Financial Aid - - - - - 8,366,379 8,366,379 Depreciation - - - - - 5,463,902 5,463,902

Totals 53,187,280$ 22,421,748$ 8,370,771$ 9,497,472$ 1,969,572$ 17,271,672$ 112,718,515$

MORAINE VALLEY COMMUNITY COLLEGE COMMUNITY COLLEGE DISTRICT NUMBER 524SCHEDULE OF MANAGEMENT INFORMATION

DETAIL OF OPERATING EXPENSES BY FUNCTION AND OBJECTYEAR ENDED JUNE 30, 2012

43.

EXHIBIT 2

MORAINE VALLEY COMMUNITY COLLEGECOMMUNITY COLLEGE DISTRICT NUMBER 524

SCHEDULE OF EXPENDITURES FOR TORT IMMUNITY PURPOSESYEAR ENDED JUNE 30, 2012

General Liability 288,115$ Workmens' Compensation Insurance 319,121 Unemployment Insurance 142,581 Contractual Service 25,600

Total Tort Immunity Purposes Expenditures 775,417$

Since the College levies property taxes for tort immunity/liability insurance purposes, asrequired by Public Act 91-068 passed by the Illinois General Assembly, the College isincluding the above list of tort immunity purposes expenditures in its annual financialreport.

The College's tax extension for tort immunity/liability insurance for tax year 2011 aslevied by Cook County was $810,725. Any shortfall to cover expenditures in excess oftaxes collected is derived from previous years' excess or other general fund revenuesof the College. Any excess of revenues over expenditures is carried forward tosubsequent fiscal years subject to a statutory formula.

44.

Statistical SectionFiscal Year EndedJune 30, 2012

Community CollegeDistrict Number 524Palos Hills, IL

MORAINE VALLEY COMMUNITY COLLEGE COMMUNITY COLLEGE DISTRICT NO. 524

STATISTICAL SECTION (UNAUDITED)

This part of the College’s Statistical section of the comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the College’s overall financial health. Contents Page Financial Trends 45-48 These schedules contain trend information to help the reader understand how the College’s financial performance and well-being have changed over time. Revenue Capacity 49-59 These schedules contain information to help the reader assess the College’s most significant local revenue source, the property tax. Debt Capacity 60-68 These schedules represent information to help the reader assess the affordability of the College’s current levels of outstanding debt and the city’s ability to issue additional debt in the future. Demographic and Economic Information 69-76 These schedules offer demographic and economic indicators to help the reader understand the environment within which the College’s financial activities take place. Operating Information 77-82 These schedules contain service and infrastructure data to help the reader understand how the information in the college’s financial

report relates to the services the College provides and the activities it performs.

Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year.

2012 2011 2010 2009Net Assets:

Invested in Capital Assets Net of Related Debt 76,635,607$ 71,487,797$ 64,047,551$ 63,194,665$

RestrictedScholarships 279,032 187,171 273,661 307,586Capital Projects 10,245,931 13,683,498 20,638,922 20,007,878Restricted for Debt Service 2,486,581 1,690,156 1,545,456 1,311,848Technology 3,755,039 3,829,740 4,618,675 5,285,429Working Cash 6,464,261 6,464,261 6,464,261 6,464,261Other 1,871,045 1,828,439 1,769,574 2,490,088

Unrestricted 66,435,748 67,471,600 65,911,205 59,647,090

Total Net Assets 168,173,244$ 166,642,662$ 165,269,305$ 158,708,845$

Source: College Records

Notes: (1) During fiscal year 2006 the College changed the capitalization threshold from 2,500 to 10,000. This statement reflects this change retroactively

(2) Beginning in fiscal year 2011, the College began displaying additional categories of restricted ne assets that were previously included in the “other” category. This statement reflects this change retroactively.

NET ASSETS BY COMPONENTFINANCIAL TRENDS

MORAINE VALLEY COMMUNITY COLLEGECOMMUNITY COLLEGE DISTRICT NUMBER 524

LAST TEN FISCAL YEARS

45.

TABLE 1

2008 2007 2006 (1) 2005 2004 2003

62,380,916$ 52,674,474$ 49,076,114$ 49,729,887$ 47,038,687$ 47,771,463$

307,512 291,196 278,508 303,931 375,450 290,035 14,158,760 6,954,917 6,732,094 5,322,791 6,119,925 6,041,076 3,199,615 2,561,283 2,456,216 3,109,516 2,886,280 2,686,311 4,891,662 3,709,258 2,952,269 2,879,810 2,876,745 2,666,955 6,464,261 6,464,261 6,464,261 6,464,261 6,464,261 6,464,261 1,075,008 804,292 698,515 586,496 678,344 1,024,514

55,881,802 58,505,965 54,389,159 50,801,485 46,391,580 42,910,223

148,359,536$ 131,965,646$ 123,047,136$ 119,198,177$ 112,831,272$ 109,854,838$

46.

2012 2011 2010 2009

OPERATING REVENUESStudent Tuition and Fees (net of scholarship allowances) 27,669,294$ 28,667,883$ 27,289,153$ 25,530,678$ Auxiliary Enterprise Revenue: 7,384,332 7,209,618 7,706,139 7,601,553Chargeback Revenue 100,252 15,854 38,487 62,769Other Operating Revenues 2,518,775 2,017,446 1,562,284 1,258,039

Total Operating Revenues 37,672,653 37,910,801 36,596,063 34,453,039

OPERATING EXPENSESInstruction 38,161,603 36,380,429 32,609,666 29,382,619Academic Support 7,153,862 6,704,030 6,510,210 5,607,265Student Services 10,399,301 10,123,001 8,924,818 7,775,475Public Services 430,844 338,558 886,260 813,907Operation and Maintenance 11,975,328 12,347,063 15,993,215 10,574,404Institutional Support 20,624,625 16,837,310 16,111,669 16,478,121Auxiliary Enterprises 10,142,671 10,038,662 9,621,183 9,172,894Financial Aid 8,366,379 9,658,719 6,794,301 4,735,530Depreciation 5,463,902 4,972,550 3,976,924 2,521,275

Total Operating Expenses 112,718,515 107,400,322 101,428,246 87,061,490 Operating Income (Loss) (75,045,862) (69,489,521) (64,832,183) (52,608,451)

NON-OPERATING REVENUES (EXPENSES)State Appropriations 22,810,695 20,328,020 19,809,643 18,643,082Local Tax Revenue 33,588,471 32,278,069 32,382,364 29,828,329Federal Grants and Contracts 22,370,595 20,502,822 16,800,477 10,715,001Local Sources 391,405 586,058 631,089 391,788Investment Income 1,096,217 736,575 1,801,678 4,527,529Interest on Capital Asset-Related Debt (3,794,052) (3,632,753) (49,188) (1,171,789)

Net Non-Operating Revenues (Expenses) 76,463,331 70,798,791 71,376,063 62,933,940 Net Income Before Capital Contributions 1,417,469 1,309,270 6,543,880 10,325,489

CAPITAL CONTRIBUTIONSState Capital Appropriations 113,113 64,087 16,580 23,820Total Capital Contributions 113,113 64,087 16,580 23,820

CHANGE IN NET ASSETS 1,530,582$ 1,373,357$ 6,560,460$ 10,349,309$

Source: Moraine Valley Community College Financial Records.

Notes:

(1) Increase in operating expenses and state appropriations for fiscal year 2004 is due to a one-time special State Universities Retirement System on-behalf appropriation of $16,743,330.

(2) The College 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 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.

MORAINE VALLEY COMMUNITY COLLEGE COMMUNITY COLLEGE DISTRICT NUMBER 524

FINANCIAL TRENDS CHANGES IN NET ASSETSLAST TEN FISCAL YEARS

47.

TABLE 2

2008 2007 2006 2005 2004 (1) 2003

22,563,915$ 21,454,011$ 19,645,872$ 19,342,722$ 16,251,477$ 14,164,062$ 7,966,925 7,871,990 7,747,875 7,484,479 7,324,510 7,590,761

84,687 36,229 74,351 75,623 62,600 43,396 959,951 667,576 600,007 381,925 682,828 550,812

31,575,478 30,029,806 28,068,105 27,284,749 24,321,415 22,349,031

27,332,136 25,508,362 25,223,345 24,090,982 31,710,631 21,082,827 5,009,679 4,927,290 4,940,446 5,234,333 5,261,624 4,772,992 6,887,438 7,186,156 6,758,015 6,821,124 8,593,429 6,503,633

747,265 949,609 960,904 992,085 1,064,721 1,250,500 7,463,041 7,616,517 7,552,515 7,944,587 7,108,932 5,420,093

14,796,438 14,881,329 12,454,609 12,703,760 14,427,801 11,531,595 9,123,821 7,947,078 7,334,327 6,939,834 7,061,333 6,773,260 4,217,361 3,708,636 3,535,614 3,611,946 2,981,768 2,739,831 2,395,949 2,166,792 2,123,587 3,158,339 3,948,497 3,720,166

77,973,128 74,891,769 70,883,362 71,496,990 82,158,736 63,794,897 (46,397,650) (44,861,963) (42,815,257) (44,212,241) (57,837,321) (41,445,866)

16,991,608 16,211,595 15,535,528 15,550,897 30,831,885 17,175,195 31,835,073 22,194,183 21,563,865 22,093,512 21,067,684 20,494,669

8,592,989 8,372,240 8,428,390 8,438,017 7,168,924 7,129,652 381,779 414,220 310,830 377,752 319,964 219,390

6,061,539 4,639,417 3,129,885 1,769,707 1,145,890 1,579,667 (1,788,980) (434,964) (133,322) (269,208) (344,423) (464,119) 62,074,008 51,396,691 48,835,176 47,960,677 60,189,924 46,134,454 15,676,358 6,534,728 6,019,919 3,748,436 2,352,603 4,688,588

717,532 2,383,782 - 1,137,747 - - 717,532 2,383,782 - 1,137,747 - -

16,393,890$ 8,918,510$ 6,019,919$ 4,886,183$ 2,352,603$ 4,688,588$

48.

Fiscal Levy Residential Commercial Industrial Farm RailroadYear Year Property Property Property Property Property

2012 2011 $ N/A $ N/A $ N/A $ N/A $ N/A

2011 2010 8,642,229,242 2,614,359,250 1,563,504,213 632,633 23,722,754

2010 2009 8,391,336,183 2,797,563,163 1,677,616,609 623,778 22,442,108

2009 2008 7,740,786,899 3,070,135,659 1,913,690,028 974,642 20,897,635

2008 2007 6,955,839,627 2,619,654,132 1,721,403,833 925,198 21,591,919

2007 2006 6,487,903,294 2,470,710,693 1,657,874,519 911,447 20,243,278

2006 2005 6,280,358,066 2,494,320,979 1,682,214,483 1,031,115 20,274,953

2005 2004 5,302,678,499 2,079,585,469 1,509,631,848 1,131,510 20,198,044

2004 2003 5,048,165,100 2,000,999,884 1,478,680,650 1,261,467 19,610,206

2003 2002 4,998,415,455 2,024,453,661 1,519,135,115 1,357,546 20,686,145

Source: Cook County Assessor's Office

LAST TEN LEVY YEARS

MORAINE VALLEY COMMUNITY COLLEGECOMMUNITY COLLEGE DISTRICT NUMBER 524

REVENUE CAPACITYASSESSED VALUE AND ACTUAL VALUE OF TAXABLE PROPERTY

49.

TABLE 3

Total Estimated Ratio of TotalTotal Taxable Direct Actual Assessed Value to

Assessed Tax Taxable Total EstimatedValue Rate Value Actual Value

10,788,573,903$ 0.311 32,368,958,605$ 33.33%

12,844,448,092 0.256 38,537,197,996 33.33%

12,889,581,841 0.247 38,672,612,784 33.33%

12,746,484,863 0.247 38,243,005,296 33.33%

11,319,414,709 0.262 33,961,640,291 33.33%

10,637,643,231 0.270 31,916,721,365 33.33%

10,478,199,596 0.208 31,434,598,791 33.33%

8,913,225,370 0.253 26,739,676,110 33.33%

8,548,717,307 0.256 25,646,152,177 33.33%

8,564,047,922 0.245 25,720,248,250 33.30%

50.

TABLE 4

FiscalYear Tax Taxes Levied Collections

Ended Levy Assessed for the Percentage in Subsequent PercentageJune 30, Year Value Fiscal Year Amount of Levy Years Amount of Levy

2012 2011 10,788,573,903$ 33,512,876$ 16,792,891$ 50.11% -$ 16,792,891$ 50.11%

2011 2010 12,844,448,092 32,763,233 16,306,578 49.77% 15,593,215 31,899,793 97.36%

2010 2009 12,889,581,841 31,770,742 15,902,141 50.05% 14,990,725 30,892,866 97.24%

2009 2008 12,746,484,863 31,389,089 14,116,980 44.97% 16,937,662 31,054,642 98.93%

2008 2007 11,319,414,709 29,555,451 13,307,602 45.03% 15,457,781 28,765,383 97.33%

2007 2006 10,637,643,231 28,749,407 10,398,839 36.17% 17,991,509 28,390,348 98.75%

2006 2005 10,478,199,596 21,714,331 11,370,766 52.37% 10,340,626 21,711,392 99.99%

2005 2004 8,913,225,370 22,538,567 10,414,329 46.21% 11,638,418 22,052,747 97.84%

2004 2003 8,548,717,307 21,821,982 10,051,423 46.06% 11,496,848 21,548,271 98.75%

2003 2002 8,564,047,922 20,976,157 10,072,748 48.02% 10,584,710 20,657,458 98.48%

Sources: Cook County Treasurer's Office and Moraine Valley Community College Financial Records

Note: Property taxes in Cook County, Illinois are due in two installments, March 1 and August 1 in the calendar year followingthe levy year. Approximately one-half of the total tax levy year is generally collected by June 30 of the following year

Collected within the Fiscal Year of the Levy Total Collections to Date

MORAINE VALLEY COMMUNITY COLLEGE COMMUNITY COLLEGE DISTRICT NUMBER 524

PROPERTY TAX LEVIES AND COLLECTIONSLAST TEN FISCAL YEARS

REVENUE CAPACITY

51.

Year of LevyCook County

Assessed Valuation Education Fund

Operations and Maintenance

Fund

Liability, Protection, and

Settlement Fund

Life Safety Fund

2011 10,788,573,903$ 18,750,541$ 6,343,681$ 798,354$ 1,089,645$ 2010 12,844,448,092 18,597,031 6,090,965 815,730 955,865 2009 12,889,581,841 17,398,873 5,732,958 860,977 900,000 2008 12,746,484,863 17,010,112 5,496,594 1,141,707 916,117 2007 11,319,414,709 16,015,032 4,805,250 1,501,915 900,425 2006 10,637,643,231 15,408,679 4,617,007 1,520,603 871,112 2005 10,478,199,596 14,471,374 4,309,482 1,609,504 820,000 2004 8,913,225,370 13,903,835 3,983,952 1,480,684 860,397 2003 8,548,717,307 13,669,398 3,744,338 1,325,051 795,030 2002 8,564,047,922 13,428,427 3,682,540 967,737 779,328

Tax Year Education Fund

Operations and Maintenance

Fund

Liability, Protection, and

Settlement Fund

Life Safety Fund

2011 0.1738 0.0588 0.0074 0.01012010 0.1448 0.0474 0.0064 0.00742009 0.1350 0.0445 0.0067 0.00702008 0.1334 0.0431 0.0090 0.00722007 0.1415 0.0425 0.0133 0.00802006 0.1449 0.0434 0.0143 0.00822005 0.1381 0.0411 0.0154 0.00782004 0.1560 0.0447 0.0166 0.00972003 0.1599 0.0438 0.0155 0.00932002 0.1568 0.0430 0.0113 0.0091

Sources: Cook County Treasurer's Office and Moraine Valley Community College Financial Records

Amount of Levy

Tax Rates (Per $100 of assessed valuation)

MORAINE VALLEY COMMUNITY COLLEGECOMMUNITY COLLEGE DISTRICT NUMBER 524

REVENUE CAPACITYASSESSED VALUATIONS, TAXES EXTENDED AND TAX RATES

LAST TEN TAX LEVY YEARS

52.

TABLE 5

Bond and Interest Fund Audit Fund

Social Security and

Medicare Fund Total

6,422,770$ 107,885$ -$ 33,512,876$ 6,197,993 105,649 - 32,763,233 6,136,634 102,000 639,300 31,770,742 6,135,321 94,666 594,572 31,389,089 5,732,679 60,029 540,121 29,555,451 5,773,532 50,647 507,827 28,749,407

- 31,000 472,971 21,714,331 1,840,482 28,013 441,204 22,538,567 1,843,632 25,646 418,887 21,821,982 1,749,872 25,692 342,561 20,976,157

Bond and Interest Fund Audit Fund

Social Security and

Medicare Fund Total

0.0595 0.0010 0.0000 0.31100.0483 0.0008 0.0000 0.25600.0476 0.0008 0.0050 0.24700.0481 0.0007 0.0047 0.24700.0506 0.0005 0.0048 0.26120.0543 0.0005 0.0038 0.2694

- 0.0003 0.0045 0.20720.0206 0.0003 0.0049 0.25280.0216 0.0003 0.0049 0.25530.0204 0.0003 0.0040 0.2449

53.

Taxing Bodies 2011 2010 2009 2008

City of Palos Hills 0.515 0.414 0.409 0.422School District #117 4.406 3.602 3.506 3.488School District #118 2.457 2.011 1.983 2.052North Palos Fire Protection District 0.869 0.701 0.691 0.694Green Hills Public Library District 0.358 0.288 0.285 0.290Consolidated High School District #230 2.180 1.812 1.764 1.801South Cook County Mosquito Abatement District 0.012 0.010 0.009 0.009Metropolitan Water Reclamation District 0.320 0.274 0.261 0.252General Assistance Palos 0.005 0.004 0.004 0.004Road and Bridge Palos 0.042 0.033 0.032 0.032Township of Palos 0.050 0.040 0.039 0.039Consolidated Elections 0.025 0.000 0.021 0.000Suburban TB Sanitarium 0.000 0.000 0.000 0.000Forest Preserve District of Cook County 0.058 0.051 0.049 0.051County of Cook 0.462 0.423 0.394 0.415Total Overlapping Rate 11.759 9.663 9.447 9.549Moraine Valley Community College Dist 524 0.311 0.256 0.247 0.247

Total Rate 12.070 9.919 9.694 9.796

Moraine Valley Community College Dist 524 Percentage of Total 2.58% 2.58% 2.55% 2.52%

Source: Cook County, Illinois Tax Extension Division For Local Property Tax Payers of Palos Hills Village

MORAINE VALLEY COMMUNITY COLLEGECOMMUNITY COLLEGE DISTRICT NUMBER 524

REVENUE CAPACITYPROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS

FOR THE LAST TEN TAX LEVY YEARS

54.

TABLE 6

2007 2006 2005 2004 2003 2002

0.450 0.461 0.437 0.495 0.493 0.4743.712 3.755 3.531 3.495 2.759 2.6872.298 2.375 2.346 2.687 2.726 2.698

0.734 0.750 0.709 0.803 0.801 0.770

0.309 0.283 0.253 0.269 0.156 0.149

1.926 1.985 1.939 2.200 2.239 2.115

0.006 0.007 0.010 0.012 0.013 0.011

0.263 0.284 0.315 0.347 0.361 0.3710.004 0.004 0.003 0.004 0.004 0.0040.034 0.034 0.033 0.038 0.039 0.0370.041 0.041 0.039 0.043 0.045 0.0430.012 0.000 0.014 0.000 0.029 0.0000.000 0.005 0.005 0.001 0.004 0.006

0.053 0.057 0.060 0.060 0.059 0.0610.446 0.500 0.386 0.593 0.630 0.69010.288 10.541 10.080 11.047 10.358 10.116

0.262 0.270 0.208 0.253 0.256 0.245

10.550 10.811 10.288 11.300 10.614 10.361

2.48% 2.50% 2.02% 2.24% 2.41% 2.36%

55.

Equalized Percentage ofAssessed Total Assessed

Taxpayer Type of Business Valuation Rank Valuation

Simon Properties IRC Shopping Center 141,206,423$ 1 1.10%

Double Tree IRC Hotel 71,453,095 2 0.56%

WLFD Processing Dept./Chicago Ridge Mall Shopping Center 67,120,182 3 0.52%

Bradley Partnership Shopping Center 47,286,614 4 0.37%

Wal-Mart Stores Discount Department Stores 45,404,182 5 0.35%

Target Discount Department Store 32,206,970 6 0.25%

Home Depot DIY Retail Store 30,922,049 7 0.24%

New Plan Exel Properties Shopping Center 30,753,129 8 0.24%

Sears Department Store 24,718,053 9 0.19%

MCRIL LLC Shipping Company 23,501,735 10 0.18%

TOTAL 514,572,432$ 4.01%

TOTAL ASSESSED VALUATION 12,844,448,092$

Sources: Cook County Clerks Office 2010 latest available information

2010 TAX LEVY YEAR

MORAINE VALLEY COMMUNITY COLLEGECOMMUNITY COLLEGE DISTRICT NUMBER 524

PRINCIPAL PROPERTY TAXPAYERS2010 TAX LEVY YEAR AND NINE YEARS AGO

REVENUE CAPACITY

56.

TABLE 7

Equalized Percentage ofAssessed Total Assessed

Taxpayer Type of Business Valuation Rank Valuation

Robin Realty Management Shopping Center 15,200,436$ 1 0.22%

Manor Care Assessment Management Nursing Home 8,843,065 2 0.13%

KRCV-(Big K Mart) Retail Sales 6,621,365 3 0.09%

Hilton Inn Oak Lawn Hotel 6,495,155 4 0.09%

Burr Wolf 6,373,974 5 0.09%

Fifth Third Bank Bank Facilities 5,916,761 6 0.08%

Oak Lawn Association Retail Sales 4,072,570 7 0.06%

Advocate Accounting Apartments, single family homes 3,774,213 8 0.05% Evangelical Hospital Corp/EHC (housing for doctors & nurses), Accounting (Christ Hospital and classrooms, doctor's office

Medical Center building and parking lots

National Tax Search LLC Shopping Centers 3,417,525 9 0.05%

W & K Sales 2,759,329 10 0.04%

63,474,393$ 0.90%

7,065,088,391$

2001 TAX LEVY YEAR

57.

Out of Out ofIn District District State

Tuition and Tuition and Tuition andFTE Headcount Headcount Fees per Fees per Fees per

Credit Credit Noncredit Semester Semester SemesterFiscal Year Courses Courses Courses Hour Hour Hour

2012 10,680 18,169 1,593 108$ 255$ 297$

2011 10,846 17,387 1,200 100 247 289

2010 10,851 17,774 1,297 92 237 277

2009 10,360 17,477 1,259 82 227 267

2008 9,678 15,859 1,286 74 214 257

2007 9,447 15,693 1,460 72 204 247

2006 9,532 15,929 1,445 69 204 247

2005 9,515 16,077 1,309 64 204 247

2004 9,145 15,780 1,460 58 204 247

2003 8,286 14,480 1,817 56 199 241

Source: College records

MORAINE VALLEY COMMUNITY COLLEGECOMMUNITY COLLEGE DISTRICT NUMBER 524

REVENUE CAPACITYENROLLMENT, TUITION, AND FEE RATES, CREDIT HOURS,

AND FEE REVENUES GENERATED

Fall Term Enrollment

LAST TEN FISCAL YEARS

Tuition and Fee Rates

58.

TABLE 8

AuxiliaryEnterprises

Education & Other TotalFund Funds All Funds

45,760,488$ 2,316,442$ 48,076,930$

43,543,864 1,857,292 45,401,156

36,488,500 2,057,396 38,545,896

31,028,315 2,038,027 33,066,342

27,330,495 1,639,880 28,970,375

26,638,345 1,875,558 28,513,903

24,754,954 2,001,750 26,756,704

24,016,440 1,898,102 25,914,542

20,651,262 2,175,257 22,826,519

18,273,393 2,830,059 21,103,452

Tuition and Fee Revenues

59.

TABLE 9

Ratio ofTotal

Net Ratio of Outstanding General Net General Total Debt to Net

Fiscal Bonded Assessed Bonded Debt to Personal Personal Bonded DebtYear Debt Value Assessed Value Population Income Income Per Capita2012 125,675,000$ 10,788,573,903$ 1.16% 388,606 10,720,862,328$ 1.17% 323$ 2011 78,850,000 12,844,448,092 0.61% 388,606 10,720,862,328 0.74% 203 2010 80,885,000 12,889,581,841 0.63% 376,000 10,373,088,000 0.78% 215 2009 82,845,000 12,746,484,863 0.65% 376,000 8,656,044,894 0.96% 220 2008 84,150,000 11,319,414,709 0.74% 376,000 8,656,044,894 0.97% 224 2007 15,250,000 10,637,643,231 0.14% 376,000 8,656,044,894 0.18% 41 2006 - 10,478,199,596 0.00% 376,000 8,656,044,894 0.00% - 2005 - 8,913,225,370 0.00% 376,000 8,656,044,894 0.00% - 2004 800,589 8,548,717,307 0.01% 376,000 8,656,044,894 0.01% 2 2003 2,515,641 3,564,047,922 0.07% 376,000 8,656,044,894 0.03% 7

Sources: Cook County Treasurer's Office, College Records and U.S. Bureau of the Census

AND NET GENERAL OBLIGATION BONDED DEBT PER CAPITALAST TEN FISCAL YEARS

MORAINE VALLEY COMMUNITY COLLEGE COMMUNITY COLLEGE DISTRICT NUMBER 524

RATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUE AND PERSONAL INCOME

DEBT CAPACITY

60.

MORAINE VALLEY COMMUNITY COLLEGECOMMUNITY COLLEGE DISTRICT NUMBER 524

DEBT CAPACITYSCHEDULE OF RATIOS OF OUTSTANDING DEBT

LAST TEN FISCAL YEARS

2012 2011 2010 2009Debt General Bond Debt 125,675,000$ 78,850,000$ 80,885,000$ 82,845,000$

Capital Lease Obligations - - - 199,652

Total Outstanding Debt 125,675,000$ 78,850,000$ 80,885,000$ 83,044,652$

Per Student 3,199.71$ 2,142.08$ 2,188.57$ 2,374.06$

Percentage of Personal Income 1.17% 0.74% 0.78% 0.96%

Source: Moraine Valley Community College Financial Records

Notes: Debt per student is calculated using unduplicated credit and non-credit enrollment total for the fiscal year

(1) - Less than 0.01%

61.

TABLE 10

2008 2007 2006 2005 2004 2003

84,150,000$ 15,250,000$ -$ -$ 800,589$ 2,515,641$

480,562 740,271 350,293 387,253 272,239 272,933

84,630,562$ 15,990,271$ 350,293$ 387,253$ 1,072,828$ 2,788,574$

2,374.53$ 435.28$ 9.75$ 11.37$ 31.68$ 80.85$

0.98% 0.18% (1) (1) 0.01% 0.03%

62.

TABLE 11PAGE 1 OF 3

Taxing DistrictBonds

Overlapping Percent AmountDirectMoraine Valley Community College District 524 125,675,000$ (4) 100.000% 125,675,000$

OverlappingCounty and Township Special Service Areas:Cook County 3,499,615,000 7.235% 253,197,145 Cook County Forest Preserve 101,935,000 7.235% 7,374,997 Lyons Township 9,165,000 19.236% 1,762,979 Worth Township Special Service Area 1 255,000 100.000% 255,000

Fire Protection Districts:Orland Fire District 5,750,000 100.000% 5,750,000

Library Districts:Stickney-Forestview Library District 655,000 44.880% 293,964 Summit Library District 4,725,000 93.748% 4,429,593

Municipalities: Village of Alsip 18,780,000 (1) 100.000% 18,780,000 Alsip Special Service Area 14 87,798 100.000% 87,798 Village of Bedford Park 33,770,000 100.000% 33,770,000 City of Blue Island & Library 4,515,000 (1) 96.440% 4,354,266 Village of Bridgeview & Library 64,285,000 (1) 100.000% 64,285,000 City of Burbank 10,225,000 100.000% 10,225,000 Burbank Special Service Area 36 49,000 100.000% 49,000 Village of Calumet Park & Library 2,800,000 (1) 100.000% 2,800,000 Village of Chicago Ridge & Library 6,550,000 100.000% 6,550,000 Village of Evergreen Park & Library 11,740,000 100.000% 11,740,000 Village of Forest View 2,275,000 53.469% 1,216,420 City of Hickory Hills 1,301,000 (1) 100.000% 1,301,000 Village of Justice 700,000 (1) 100.000% 700,000 Village of Lyons 6,985,000 (1) 0.012% 838 Village of Merrionette Park 260,000 100.000% 260,000 Village of Midlothian & Library 13,710,000 (1) 1.959% 268,579 City of Oak Forest** 31,295,000 14.587% 4,565,002 Village of Oak Lawn & Library 49,965,302 (1) 100.000% 49,965,302 Oak Lawn Special Service Area 2001-1 4,520,000 100.000% 4,520,000 Village of Orland Park & Library 79,435,000 99.138% 78,750,270 City of Palos Heights 4,223,327 100.000% 4,223,327 Village of Posen 2,265,000 (1) 0.026% 589 Village of Robbins 620,000 (1) 99.904% 619,405 Village of Summit 123,000 (1) 94.014% 115,637 Summit Special Service Area 5 199,000 100.000% 199,000 Village of Tinley Park & Library 55,210,000 53.683% 29,638,384 Village of Willow Springs 2,560,000 (1) 39.957% 1,022,899 Village of Worth 480,000 (1) 100.000% 480,000

JUNE 30, 2012

MORAINE VALLEY COMMUNITY COLLEGECOMMUNITY COLLEGE DISTRICT NUMBER 524

COMPUTATION OF DIRECT AND OVERLAPPING DEBT*GENERAL OBLIGATION BONDS

DEBT CAPACITY

63.

TABLE 11PAGE 2 OF 3

Taxing DistrictBonds

Overlapping Percent Amount

Park Districts:Alsip Park District 4,355,000$ 100.000% 4,355,000$ Bedford Park Park District 1,885,000 100.000% 1,885,000 Blue Island Park District 452,400 96.246% 435,417 Bridgeview Park District 520,000 (1) 100.000% 520,000 Burbank Park District 2,530,000 100.000% 2,530,000 Central Stickney Park District 630,000 98.695% 621,779 Chicago Ridge Park District 307,700 (1) 100.000% 307,700 Hickory Hills Park District 2,355,000 100.000% 2,355,000 Justice Park District 65,000 100.000% 65,000 Midlothian Park District 243,000 1.960% 4,763 Mokena Community Park District and Mokena Community 2005 Bond 2,360,000 (2) 11.298% 266,633 Oak Forest Park District 1,551,770 8.398% 130,318 Oak Lawn Park District 1,725,000 (1) 100.000% 1,725,000 Pleasantdale Park District 995,000 (1) 0.646% 6,428 Summit Park District 233,700 93.694% 218,963 Tinley Park Park District 11,815,000 65.971% 7,794,474 Worth Park District 281,654 (2) 100.000% 281,654

Sanitary Districts:Metropolitan Water Reclamation District 1,974,078,439 (3) 7.384% 145,765,952 South Palos Twp Sanitary District 854,000 100.000% 854,000

School Districts:School District #104 32,010,000 97.127% 31,090,353 School District #108 5,040,000 100.000% 5,040,000 School District #109 11,135,000 100.000% 11,135,000 School District #111 12,813,686 (2) 100.000% 12,813,686 School District #117 19,920,000 100.000% 19,920,000 School District #118 4,510,000 100.000% 4,510,000 School District #122 26,498,700 (2) 100.000% 26,498,700 School District #123 35,680,072 (2) 100.000% 35,680,072 School District #124 7,745,000 100.000% 7,745,000 School District #125 4,388,550 (2) 100.000% 4,388,550 School District #126 7,095,000 100.000% 7,095,000 School District #127 4,689,914 (2) 100.000% 4,689,914 School District #127-1/2 7,635,000 100.000% 7,635,000 School District #128 5,155,000 100.000% 5,155,000 School District #130 14,487,660 100.000% 14,487,660 School District #132 4,724,000 99.409% 4,696,081 School District #135 19,895,000 (1) 100.000% 19,895,000 School District #140 7,450,622 (2) 100.000% 7,450,622 School District #142 12,315,193 (2) 15.194% 1,871,170 School District #143 1,875,000 31.224% 585,450 School District #143 1/2 3,690,000 37.780% 1,394,082 School District #146 28,095,000 51.905% 14,582,710

MORAINE VALLEY COMMUNITY COLLEGECOMMUNITY COLLEGE DISTRICT NUMBER 524

DEBT CAPACITYCOMPUTATION OF DIRECT AND OVERLAPPING DEBT*

GENERAL OBLIGATION BONDSJUNE 30, 2012

64.

TABLE 11PAGE 3 OF 3

Taxing DistrictBonds

Overlapping Percent Amount

High School Districts: High School District #217 14,311,017$ (2) 100.000% 14,311,017$ High School District #218 15,951,819 (1)(2) 100.000% 15,951,819 High School District #220 14,375,000 100.000% 14,375,000 High School District #228 31,930,000 2.944% 940,019 High School District #229 5,275,000 100.000% 5,275,000 High School District #230 68,525,000 100.000% 68,525,000 High School District #231 1,320,669 (2) 100.000% 1,320,669

Total Overlapping General Obligation Bonded Debt 1,142,732,049

Total Direct And Overlapping General Obligation Bonded Debt 1,268,407,049$

*Tax Year 2009 equalized assessed values and outstanding bonds as of June 30, 2011 were used in the calculations of this statement. Because of the small percentage (.0001462 of 1%) of equalized assessed valuation in the City of Chicago ($123,552) the debt of the City, park, and schools are excluded from this statement. **Includes Tax Increment Finance Area bonds of the municipality.

(1) Excludes principal amounts of outstanding General Obligation (Alternate Revenue Source) Bondswhich are expected to be paid from sources other than general taxation. Excludes self-supporting bonds.Excludes debt certificates and TIF bonds.

(2) Includes original principal amounts of outstanding Capital Appreciation Bonds.(3) Includes IEPA Revolving Loan Fund Bonds.(4) Moraine Valley Community College's bonds as of June 30, 2012

Sources: Offices of the Cook County Clerk, Comptroller and Treasurer of Metropolitan Water Reclamation District

DEBT CAPACITY

GENERAL OBLIGATION BONDSJUNE 30, 2012

MORAINE VALLEY COMMUNITY COLLEGECOMMUNITY COLLEGE DISTRICT NUMBER 524

COMPUTATION OF DIRECT AND OVERLAPPING DEBT*

65.

Legal Debt Margin Calculation for Fiscal Year 2012 (based on 2011 tax levy Assessed value 10,788,573,903$ Debt limit (2.875% of assessed value) 310,171,500 Debt applicable to limit 125,675,000 Legal debt margin 184,496,500$

2012 2011 2010 2009

Debt limit 310,171,500$ 369,277,883$ 370,575,478$ 366,458,818$

Total net debt applicable to limit 125,675,000 78,850,000 80,885,000 82,845,000

Legal debt margin 184,496,500$ 290,427,883$ 289,690,478$ 283,613,818$

Total net debt applicable to the limit as a percentage of debt limit 40.52% 21.35% 21.83% 22.61%

Source: Moraine Valley Community College Financial Records

Fiscal Year

LEGAL DEBT MARGIN INFORMATIONLAST TEN FISCAL YEARS

MORAINE VALLEY COMMUNITY COLLEGE COMMUNITY COLLEGE DISTRICT NUMBER 524

DEBT CAPACITY

66.

TABLE 12

2008 2007 2006 2005 2004 2003

325,433,173$ 305,832,243$ 301,248,238$ 256,304,414$ 245,775,623$ 207,804,504$

84,150,000 15,250,000 - - 800,589 2,515,641

241,283,173$ 290,582,243$ 301,248,238$ 256,304,414$ 244,975,034$ 205,288,863$

25.86% 4.99% 0.00% 0.00% 0.33% 1.21%

67.

TABLE 13

OtherFiscal Operating CoverageYear Revenues Principal Interest Total Ratio2012 2,518,775$ -$ -$ -$ -

2011 2,017,446 - - - -

2010 1,562,284 199,652 8,564 208,216 7.50

2009 1,258,039 280,910 38,445 319,355 3.94

2008 959,951 259,710 59,221 318,931 3.01

2007 667,576 260,951 79,222 340,173 1.96

2006 600,007 250,181 100,112 350,293 1.71

2005 381,925 281,636 105,617 387,253 0.99

2004 682,825 210,083 62,156 272,239 2.51

2003 594,208 195,164 77,769 272,933 2.18

Source: Moraine Valley Community College Financial Records

Note: Other operating revenues consists of child care center fees, library fees, library fines, rental of facilities and traffic fines.

MORAINE VALLEY COMMUNITY COLLEGE

Xerox Capital Leases

COMMUNITY COLLEGE DISTRICT NUMBER 524

PLEDGED REVENUE COVERAGELAST TEN FISCAL YEARS

DEBT CAPACITY

68.

TABLE 14

Fiscal Year Population

Total Personal Income

Per Capita Personal Income

2012 388,606 10,720,862,328$ 27,588$ 9.1%2011 388,606 10,720,862,328 27,588 9.5%2010 376,579 10,373,088,000 27,546 9.3%2009 376,579 8,656,044,894 22,986 10.2%2008 376,579 8,656,044,894 22,986 6.5%2007 376,579 8,656,044,894 22,986 5.1%2006 376,579 8,656,044,894 22,986 4.7%2005 376,579 8,656,044,894 22,986 6.3%2004 376,579 8,656,044,894 22,986 6.6%2003 376,579 8,656,044,894 22,986 7.2%

Sources: U.S. Department of Labor, Bureau of Labor Statistics, U.S. Census Bureau

DISTRICT DEMOGRAPHICSJUNE 30, 2012

LAST TEN FISCAL YEARS

Unemployment Rate

MORAINE VALLEY COMMUNITY COLLEGECOMMUNITY COLLEGE DISTRICT NUMBER 524

DEMOGRAPHIC AND ECONOMIC INFORMATION

69.

TABLE 15

MORAINE VALLEY COMMUNITY COLLEGECOMMUNITY COLLEGE DISTRICT NUMBER 524

DEMOGRAPHIC AND ECONOMIC INFORMATIONSTUDENT ENROLLMENT DEMOGRAPHIC STATISTICS

LAST TEN FISCAL YEARS

Fall Enrollment Headcount for Credit CoursesFiscal Full Part Head Credit Yearly Yearly PercentYear Time Time Count Hours FTE Total Increase Change2012 7,307 10,862 18,169 160,199 10,680 45,799 (250) -0.54%2011 7,736 9,651 17,387 162,691 10,846 46,049 (817) -1.74%2010 7,761 10,013 17,774 162,766 10,851 46,866 1,237 2.71%2009 7,368 10,109 17,477 155,404 10,360 45,629 3,326 7.86%2008 6,896 8,963 15,859 145,173 9,678 42,303 195 0.46%2007 6,660 9,033 15,693 141,702 9,447 42,108 443 1.06%2006 6,654 9,275 15,929 142,986 9,532 41,665 (299) -0.71%2005 6,527 9,550 16,077 142,727 9,515 41,964 815 1.98%2004 6,230 9,550 15,780 137,180 9,145 41,149 2,949 7.72%2003 5,674 8,806 14,480 124,289 8,286 38,200 1,964 5.42%

Source: College Records

70.

TABLE 16MORAINE VALLEY COMMUNITY COLLEGE

COMMUNITY COLLEGE DISTRICT NUMBER 524

STUDENT ENROLLMENT AND MISCELLANEOUS STATISTICSANNUAL UNDUPLICATED ENROLLMENT

LAST TEN FISCAL YEARS

High Total School

Fiscal Credit Noncredit Credit ParticipationYear Enrollment Enrollment Hours Rates2012 33,209 6,068 361,591 29%

2011 31,301 5,509 370,735 30%

2010 31,444 5,514 371,643 31%

2009 30,174 4,806 352,030 29%

2008 30,522 5,119 333,776 30%

2007 30,925 5,811 326,454 28%

2006 30,326 5,602 323,179 28%

2005 28,886 5,173 326,128 28%

2004 27,984 5,876 313,912 28%

2003 27,051 7,439 286,098 26%

Source: Semester opening reports, SC017

DEMOGRAPHIC AND ECONOMIC INFORMATION

71.

MORAINE VALLEY COMMUNITY COLLEGECOMMUNITY COLLEGE DISTRICT NUMBER 524

DEMOGRAPHIC AND ECONOMIC INFORMATIONCREDIT HOURS ELIGIBLE FOR FUNDING

BY ILLINOIS COMMUNITY COLLEGE BOARD REIMBURSEMENT CATEGORIES

LAST TEN FISCAL YEARS

2012 2011 2010 2009

Baccalaureate 210,718.0 214,965.0 214,437.0 197,611.0

Business Occupational 18,512.5 16,236.0 16,102.0 15,740.0

Technical Occupational 28,592.0 26,785.5 28,250.5 25,916.5

Health Occupational 24,379.5 26,485.5 25,132.5 22,750.5

Remedial Development 33,004.0 32,775.0 35,621.0 32,732.0

Adult Basic Secondary Education 13,119.0 13,176.0 12,950.0 13,531.0

TOTAL CREDIT HOURS 328,325.0 330,423.0 332,493.0 308,281.0

Source: College Records

72.

TABLE 17

2008 2007 2006 2005 2004 2003

188,029.0 182,732.0 186,693.0 188,575.0 185,888.0 169,523.0

18,594.5 21,202.5 21,878.5 23,077.0 19,180.0 19,174.0

22,944.5 20,736.5 21,213.0 18,501.5 20,849.0 20,968.0

21,725.5 20,023.0 18,930.5 18,267.0 16,913.5 15,243.0

31,042.0 30,174.0 30,136.0 31,533.0 28,675.0 25,518.0

13,320.0 14,739.0 15,939.0 15,795.0 15,900.0 9,864.0

295,655.5 289,607.0 294,790.0 295,748.5 287,405.5 260,290.0

73.

TABLE 18

COMMUNITY COLLEGE DISTRICT NUMBER 524

COLLEGE DEMOGRAPHICSJUNE 30, 2012

DEGREES AND CERTIFICATES AWARDED FY 2012

Degree TypeAssociate in Arts (AA) 491 Associate in Science (AS) 853 Associate in Arts in Teaching (AAT) - Associate in Fine Arts (AFA) 2

Total Transfer Degrees 1,346

Associate in Applied Science (AAS) 467

Total Degrees Awarded 1,813

Total Certificates Awarded 831

Total Completions 2,644

Source: College Records

MORAINE VALLEY COMMUNITY COLLEGE

DEMOGRAPHIC AND ECONOMIC INFORMATION

74.

% TotalNo. of District

Employers Rank Business Employees Employed

Christ Advocate Med. Ctr 1 Hospital & Home Health Care 5,500 2.5%

Palos Hospital 2 Hospital & Home Health Care 3,100 1.4%

Moraine Valley Comm. College 3 Education 2,341 1.1%

Metro South Medical Center 4 Hospital & Home Health Care 1,200 0.6%

Panduit 5 Network & electrical solutions 1,000 0.5%

Orland School District 135 6 Education 870 0.4%

Village of Orland Park 7 Municipality 862 0.4%

Community H.S. District 218 8 Education 800 0.4%

Corn Products 9 Milling 780 0.4%

Uniforms To You 10 Uniform Sales & Service 775 0.4%

TOTAL 17,228 7.9%

Total number of employed within district 217,186

Source: Illinois Department of Commerce & Economic Opportunity, US Census Bureau Information from 2003 is not available.

JUNE 30, 2012

MORAINE VALLEY COMMUNITY COLLEGECOMMUNITY COLLEGE DISTRICT NUMBER 524

PRINCIPAL EMPLOYERSJUNE 30, 2012 AND FIVE YEARS AGO

DEMOGRAPHIC AND ECONOMIC INFORMATION

75.

TABLE 19

% TotalNo. of District

Employers Rank Business Employees Employed

Panduit Corp. 1 Producer of network and electrical 3,500 1.8%solutions

Little Co. of Mary Hospital 2 General medical and surgical hospital 1,700 0.9%

Allied Tube and Conduit-Harvey 3 Manufacturers galvanized pipe, electrical 1,500 0.8%conduit and tubing

St. Francis Hospital and 4 General medical and surgical hospital 1,470 0.8%Healthcare Center

Yellow Transportation Inc. 5 Long distance trucking company 1,432 0.7%

Advocate South Suburban 6 Hospital and Home Health Care 1,338 0.7%Hospital

Andrew Corp. 7 Manufactures antenna, transmission lines & 1,200 0.6%acccessories, microwave equipment andshipment shelters

Chemcentral Corporation 8 Chemical Distributor 1,008 0.5%

Berry Plastic Corporation 9 Manufactures plastic products 600 0.3%

Corn Products 10 Manufacturers corn starch syrup, dextrose, 400 0.2%sweeteners, margarine and vegetable oil

TOTAL 14,148 7.4%

Total number of employed within district 192,201

Source: Illinois Department of Employment Security, US Census Bureau, College Records

JUNE 30, 2007

76.

2012 2011 2010 2009FACULTY Full-Time 189 178 182 183 Part-Time 603 575 630 580 Total Faculty FTE 792 753 812 763

LIBRARY, COUNSELORS, AND ADVISORS Library 6 5 7 6 Counselors and Advisors 14 14 13 13 Total Library, Counselors, and Advisors 20 19 20 19

ADMINISTRATORS 24 23 23 24

PROFESSIONAL STAFF Full-Time 157 156 138 141 Part-Time (2) 19 25 15 20 Total Professional Staff 176 181 153 161

CLASSIFIED EMPLOYEES Full-Time 202 200 197 186 Part-Time 79 79 78 82 Total Classified Employees 281 279 275 268

TOTAL FTE EMPLOYEES 1,293 1,255 1,283 1,235 (before student employee FTE)

STUDENT EMPLOYEES (1) 115 122 132 128

TOTAL FTE EMPLOYEES 1,408 1,377 1,415 1,363 (including student employee FTE)

Source: College records

Notes: (1) Student FTE are based upon 20 hours per week (2) The college began reporting part time professional staff in 2004.

LAST TEN FISCAL YEARS

MORAINE VALLEY COMMUNITY COLLEGECOMMUNITY COLLEGE DISTRICT NUMBER 524

OPERATING INFORMATIONFULL-TIME EQUIVALENT EMPLOYEES

77.

TABLE 20

2008 2007 2006 2005 2004 2003

180 171 165 165 162 165 602 607 584 596 531 626 782 778 749 761 693 791

6 5 5 5 5 5 12 14 13 14 13 12

18 19 18 19 18 17

25 25 25 25 27 28

129 119 117 108 117 116 15 15 18 20 10

144 134 135 128 127 116

180 181 179 178 180 182 78 74 79 82 73 68

258 255 258 260 253 250

1,227 1,211 1,185 1,193 1,118 1,202

129 116 122 111 124 130

1,356 1,327 1,307 1,304 1,242 1,332

78.

2012 2011 2010 2009

CAPITAL ASSET TYPE:

Buildings (Gross Area Sq. Ft.) Moraine Valley Education Center at Blue Island 42,000 42,000 7,300 7,300 Southwest Education Center 31,000 31,000 - - Campus Operations* - - - - Building A 173,065 173,065 173,065 173,065 Building B 178,516 178,516 178,516 178,516 College Center (Building S) 65,131 65,131 65,131 56,300 Center for Contemporary Technology (Building T) 129,048 129,048 129,048 129,048 Building D 64,613 64,613 64,613 64,613 Fine and Performing Arts Center (Building F) 91,361 91,361 91,361 91,361 Shipping and Receiving 4,000 4,000 4,000 4,000 Building P 19,500 19,500 19,500 19,500 Storage Garage 2,500 2,500 2,500 2,500 Student Union (Building U) 26,088 26,088 26,088 - Moraine Conference & Business Center (Building M) 47,969 47,969 47,969 - Science Hall (Building C) 91,934 91,934 91,934 - Building R 15,000 - - -

Equipment (number of assets) 206 212 189 184

Technology (number of assets) 42 46 51 66

Library Materials (number of assets) - - - -

Capital assets disposed (number of assets) 27 1 75 3

Source: College Records

Notes: (1) During fiscal year 2006 the College changed the capitalization threshold from 2,500 to 10,000. This statement reflects this new policy retroactively.

*Campus Operations Building 100 demolished Fall of 2008

MORAINE VALLEY COMMUNITY COLLEGECOMMUNITY COLLEGE DISTRICT NUMBER 524

OPERATING INFORMATIONCAPITAL ASSET STATISTICS - VOLUME

LAST TEN FISCAL YEARS

79.

TABLE 21

2008 2007 2006 (1) 2005 2004 2003

7,300 7,300 7,300 7,300 - - - - - - - -

20,000 20,000 20,000 20,000 20,000 20,000 173,065 173,065 173,065 173,065 173,065 173,065 178,516 178,516 178,516 178,516 178,516 178,516 56,300 56,300 56,300 56,300 56,300 56,300

129,048 129,048 129,048 129,048 129,048 129,048 64,613 64,613 64,613 64,613 64,613 64,613 91,361 91,361 91,361 91,361 91,361 91,361 4,000 4,000 4,000 4,000 4,000 4,000

19,500 - - - - - 2,500 - - - - -

- - - - - - - - - - - - - - - - - - - - - - - -

183 167 164 832 805 694

54 51 46 338 317 280

- - - - 32 31

5 4 8 119 25 57

80.

2012 2011 2010 2009CAPITAL ASSET TYPE:

Land 5,848,757$ 5,848,757$ 5,848,757$ 5,848,757$

Land Improvements 13,055,752 11,873,007 11,873,007 10,691,893

Total Land and Land Improvements 18,904,509 17,721,764 17,721,764 16,540,650

Buildings/Building Improvements 179,167,787 174,301,177 149,050,745 84,656,489

Construction in Progress 4,203,447 1,796,072 19,419,182 60,499,338

Equipment 5,398,419 6,921,755 6,745,373 8,146,181

Technology 6,112,923 6,245,183 1,449,686 1,864,589

Library Materials - - - -

Total Capital Assets 213,787,085$ 206,985,951$ 194,386,750$ 171,707,247$

OTHER INFORMATION:

Capital Contributions 113,113$ 64,087$ 16,580$ 23,820$

Depreciation Expense 5,463,902 4,972,550 3,976,924 2,521,275

Source: College Records

Notes: (1) During fiscal year 2006 the College changed the capitalization threshold from 2,500 to 10,000.

MORAINE VALLEY COMMUNITY COLLEGECOMMUNITY COLLEGE DISTRICT NUMBER 524

OPERATING INFORMATIONCAPITAL ASSET STATISTICS - VALUE

LAST TEN FISCAL YEARS

81.

TABLE 22

2008 2007 2006 (1) 2005 2004 2003

5,848,757$ 584,000$ 584,000$ 584,000$ 584,000$ 584,000$

10,691,893 6,240,856 5,230,883 4,854,406 4,193,367 3,894,743

16,540,650 6,824,856 5,814,883 5,438,406 4,777,367 4,478,743

83,542,448 78,925,751 78,925,751 76,767,573 75,918,156 75,918,156

20,693,631 6,519,596 317,410 - - -

7,737,937 7,435,402 7,562,042 11,569,918 11,688,354 11,396,326

1,878,336 1,685,106 1,450,963 4,247,190 4,475,157 7,055,228

- - - - 7,878,337 7,878,337

130,393,002$ 101,390,711$ 94,071,049$ 98,023,087$ 104,737,371$ 106,726,790$

717,532$ 2,383,782$ -$ 1,137,747$ -$ -$

2,395,949 2,166,792 2,123,587 3,158,339 3,948,497 3,720,166

82.

Special Reports SectionFiscal Year EndedJune 30, 2012

Community CollegeDistrict Number 524Palos Hills, IL

MORAINE VALLEY COMMUNITY COLLEGE COMMUNITY COLLEGE DISTRICT NUMBER 524

SPECIAL REPORTS SECTION JUNE 30, 2012

UNIFORM FINANCIAL STATEMENTS The Uniform Financial Statements are required by the Illinois Community College Board for the purpose of providing consistent audited data for every community college district. Regardless of the basis of accounting used for a College’s balance sheet and statement of revenues and expenditures, the Uniform Financial Statements are completed using the modified accrual basis of accounting prescribed by the NCGA Statement No. 1 and related interpretations. The Uniform Financial Statements include the following: No. 1 All Funds Summary No. 2 Summary of Fixed Assets and Debt No. 3 Operating Funds Revenue and Expenditures No. 4 Restricted Purposes Fund Revenues and Expenditures No. 5 Current Funds Expenditures by Activity CERTIFICATE OF CHARGEBACK REIMBURSEMENT No. 6 Certificate of Chargeback Reimbursement

MORAINE VALLEY COMMUNITY COLLEGECOMMUNITY COLLEGE DISTRICT NUMBER 524

UNIFORM FINANCIAL STATEMENT #1ALL FUNDS SUMMARY

FOR THE YEAR ENDED JUNE 30, 2012

35,490,411$ $ 5,925,377 $ 19,237,757 $ 9,235,042

- - - - Premium on Bond Issuance - - - -

19,429,719 6,085,421 1,001,218 - 100,252 - - -

2,695,578 4,942,503 - - - - - - - - - -

45,736,676 - - 816,092 2,267,525 38,478 226,574 7,442,338

70,229,750 11,066,402 1,227,792 8,258,430

29,400,175 - - - 5,807,558 - - -

Student Services 7,264,002 - - - Public Service/Continuing Education 32,039 - - -

- - - 9,382,801 - 10,533,600 8,979,298 -

16,107,055 - - - 6,541,910 - - -

65,152,739 10,533,600 8,979,298 9,382,801

(2,205,714) (800,000) 1,800,000 1,365,714

38,361,708$ 5,658,179$ 13,286,251$ 9,476,385$

Note: This statement is prepared under the modified accrual basis of accounting which is in accordancewith generally accepted accounting principles (GAAP).

Scholarships, Grants, Waivers -

-

Total Expenditures 6,769,032

Net Transfers -

Fund Balance June 30, 2012 50,932,918$

Institutional Support 6,769,032

619,965

Instruction

Auxiliary Services - Operations and Maintenance -

-

-

Academic Support -

Revenues:

Fund Balance June 30, 2011 $ 1,690,156

-

56,011,794

Expenditures:

Federal Revenue -

Total RevenueAll Other Revenue

ICCB Grants

Student Tuition and Fees -

Local Tax Revenue 6,177,624 All Other Local Revenue -

All Other State Revenue

Bond Proceeds 48,995,000

EducationFund

-

SCHEDULE 1Page 1 of 7

Operationsand

MaintenanceFund

(Restricted)

Operationsand

MaintenanceFund

Bond andInterestFund

AuxiliaryEnterprises

Fund

219,205

83.

MORAINE VALLEY COMMUNITY COLLEGECOMMUNITY COLLEGE DISTRICT NUMBER 524

UNIFORM FINANCIAL STATEMENT #1ALL FUNDS SUMMARY

FOR THE YEAR ENDED JUNE 30, 2012

4,880,398$ 13,528,829$ 8,684$ 35,776$ 1,573,980$ 57,140,984$

- - - - - - - - - - - - - - - 104,513 789,977 26,409,630

185,167 - - - - 285,419 991,884 - - - - 8,629,965

2,470,928 - - - - 2,470,928 22,385,519 - - - - 22,385,519

- - - - - 46,552,768 297,186 95,972 265,106 155 3,243 10,048,925

26,330,684 95,972 265,106 104,668 793,220 116,783,154

2,895,952 - - - - 32,296,127 494,765 - - - - 6,302,323

1,520,647 - 248,922 - - 8,784,649

356,113 - - - - 388,152 - - - - - 9,382,801

56,112 - - - - 10,589,712 189,783 - - 65,383 775,417 17,137,638

20,707,943 - 5,000 - - 27,249,853 26,221,315 - 253,922 65,383 775,417 112,131,255

- (160,000) - - - (1,640,000)

4,989,767$ 13,464,801$ 19,868$ 75,061$ 1,591,783$ 60,152,883$

SCHEDULE 1Page 2 of 7

TotalCurrent Funds

RestrictedPurposes

Fund

WorkingCashFund

Trust andAgencyFund

AuditFund

Liability,ProtectionSettlement

FundTotal

All Funds

9,382,801 19,569,010

9,033,571

388,152

91,606,410$

46,552,768 11,256,542

33,588,472

8,629,965 2,470,928

22,385,519

285,419

137,856,721$

128,133,507

-

32,296,127 6,302,323

27,254,853 23,906,670

48,995,000

174,383,818

219,205

84.

SCHEDULE 1Page 3 of 7

Fixed FixedAssets/Debt Assets/Debt

Account AccountGroups Groups

July 1, 2011 Additions Deletions June 30, 2012

Fixed Assets

Sites and Improvements 17,721,764$ 1,182,745$ -$ 18,904,509$ Construction in Progress 1,796,072 4,202,006 1,794,631 4,203,447 Buildings, Additions, and Improvements 174,301,177 4,866,610 - 179,167,787 Equipment 6,921,755 250,972 1,774,308 5,398,419 Equipment - Technology 6,245,183 176,008 308,268 6,112,923

Total Fixed Assets 206,985,951 10,678,341 3,877,207 213,787,085

Accumulated Depreciation 53,949,534 5,463,902 1,502,498 57,910,938

Net Fixed Assets 153,036,417$ 5,214,439$ 2,374,709$ 155,876,147$

Fixed Debt

Bonds Payable 78,850,000$ 48,995,000$ 2,170,000$ 125,675,000$ Premium on Bond Issuance 3,340,099 219,206 181,949 3,377,356

Total Fixed Liabilities 82,190,099$ 49,214,206$ 2,351,949$ 129,052,356$

FOR THE YEAR ENDED JUNE 30, 2012

MORAINE VALLEY COMMUNITY COLLEGECOMMUNITY COLLEGE DISTRICT NUMBER 524

UNIFORM FINANCIAL STATEMENT #2SUMMARY OF FIXED ASSETS AND DEBT

85.

SCHEDULE 1Page 4 of 7

Operationsand Total

Education Maintenance OperatingFund Fund Fund

Local Government Revenue:Local Taxes 18,278,233$ 6,085,421$ 24,363,654$ CPPRT 1,151,486 - 1,151,486 Chargeback Revenue 100,252 - 100,252

TOTAL LOCAL GOVERNMENT 19,529,971 6,085,421 25,615,392

State Government:ICCB Credit Hour Grants 2,087,407 4,870,617 6,958,024 ICCB Equalization Grants 50,000 - 50,000 ICCB Career and Technical Education 558,171 - 558,171 ICCB Other - 71,886 71,886 Other - - -

TOTAL STATE GOVERNMENT 2,695,578 4,942,503 7,638,081

Federal Government:Department of Education - - -

TOTAL FEDERAL GOVERNMENT - - -

Student Tuition and FeesTuition 42,234,549 - 42,234,549 Fees 3,502,127 - 3,502,127

TOTAL TUITION AND FEES 45,736,676 - 45,736,676

Other SourcesSales and Service Fees 1,706,784 - 1,706,784 Facilities and Revenue 20,928 - 20,928 Investment Revenue 206,795 23,607 230,402 Other 333,018 14,871 347,889

TOTAL OTHER REVENUE 2,267,525 38,478 2,306,003

TOTAL REVENUE 70,229,750 11,066,402 81,296,152

Less: Non-Operating ItemsTuition Chargeback Revenue* 100,252 - 100,252

ADJUSTED REVENUE 70,129,498$ 11,066,402$ 81,195,900$

*Intercollege expenditures that do not generate related local credit hours are subtracted to allow for

MORAINE VALLEY COMMUNITY COLLEGECOMMUNITY COLLEGE DISTRICT NUMBER 524

UNIFORM FINANCIAL STATEMENT #3OPERATING FUNDS REVENUES AND EXPENDITURES

FOR THE YEAR ENDED JUNE 30, 2012

statewide comparisons.

OPERATING REVENUES BY SOURCE

(Continued) 86.

SCHEDULE 1Page 5 of 7

Operationsand Total

Education Maintenance OperatingFund Fund Fund

OPERATING EXPENDITURES

BY PROGRAMInstruction 29,400,175$ -$ 29,400,175$ Academic Support 5,807,558 - 5,807,558 Student Services 7,264,002 - 7,264,002 Public Service/Continuing Education 32,039 - 32,039 Auxiliary Services - - - Operations and Maintenance - 10,533,600 10,533,600 Institutional Support 16,107,055 - 16,107,055 Scholarships, Grants, Waivers 6,541,910 - 6,541,910 Transfers 2,205,714 800,000 3,005,714

TOTAL EXPENDITURES 67,358,453 11,333,600 78,692,053

Less Non-Operating ItemsTuition Chargeback* 194,140 - 194,140 Transfer to Non-Operating Funds 2,205,714 800,000 3,005,714

ADJUSTED EXPENDITURES 64,958,599$ 10,533,600$ 75,492,199$

BY OBJECTSalaries 43,328,599$ 3,701,210$ 47,029,809$ Employee Benefits 6,745,089 959,266 7,704,355 Contractual Services 3,237,530 2,728,237 5,965,767 General Materials and Supplies 3,998,745 759,781 4,758,526 Conferences and Meeting Expenses 623,091 14,884 637,975 Fixed Charges 151,604 22,841 174,445 Utilities 94,134 1,841,938 1,936,072 Capital Outlay 205,211 505,443 710,654 Other 6,768,736 - 6,768,736 Transfers 2,205,714 800,000 3,005,714

TOTAL EXPENDITURES 67,358,453 11,333,600 78,692,053

Less Non-Operating ItemsTuition Chargeback* 194,140 - 194,140 Transfer to Non-Operating Funds 2,205,714 800,000 3,005,714

ADJUSTED EXPENDITURES 64,958,599$ 10,533,600$ 75,492,199$

Note: This statement is prepared under the modified accrual basis of accounting whichis in accordance with generally accepted accounting principles (GAAP).

*Intercollege expenditures that do not generate related local credit hours are subtracted to allow forstatewide comparisons.

MORAINE VALLEY COMMUNITY COLLEGECOMMUNITY COLLEGE DISTRICT NUMBER 524

UNIFORM FINANCIAL STATEMENT #3OPERATING FUNDS REVENUES AND EXPENDITURES

FOR THE YEAR ENDED JUNE 30, 2012(CONCLUDED)

87.

SCHEDULE 1Page 6 of 7

RestrictedPurpose

FundREVENUE BY SOURCE:

State Government:ICCB - Workforce Development Grants 111,483$ ICCB - Career and Technical Education 45,323 ICCB - Adult Education and Family Literacy Grants 697,344 Illinois Student Assistance Commission 2,332,133 Other-State 461,696

TOTAL STATE GOVERNMENT 3,647,979

Federal GovernmentDept. of Education 19,445,600 Dept. of Labor 821,086 Other 2,118,833

TOTAL FEDERAL GOVERNMENT 22,385,519

Other SourcesTuition and Fees - Other 297,186 TOTAL OTHER SOURCES 297,186

TOTAL RESTRICTED PURPOSES FUND REVENUES 26,330,684$

EXPENDITURES BY PROGRAMInstruction 2,895,952$ Academic Support 494,765 Student Services 1,520,647 Public Service/Continuing Education 356,113 Auxiliary Services - Operations and Maintenance 56,112 Institutional Support 189,783 Scholarships, Grants and Waivers 20,707,943

TOTAL RESTRICTED PURPOSES FUND EXPENDITURES 26,221,315$

EXPENDITURES BY OBJECTSalaries 2,709,631$ Employee Benefits 646,409 Contractual Services 929,723 General Materials and Supplies 387,412 Conferences and Meetings 191,249 Fixed Charges 8,670 Utilities 1,075 Capital Outlay 13,130 Other 254,914 Financial Aid 21,079,102

TOTAL RESTRICTED PURPOSES FUND EXPENDITURES 26,221,315$

MORAINE VALLEY COMMUNITY COLLEGECOMMUNITY COLLEGE DISTRICT NUMBER 524

UNIFORM FINANCIAL STATEMENT #4RESTRICTED PURPOSES FUND REVENUES AND EXPENDITURES

FOR THE YEAR ENDED JUNE 30, 2012

88.

SCHEDULE 1Page 7 of 7

INSTRUCTIONInstructional Programs 32,296,127$ Total Instruction 32,296,127

ACADEMIC SUPPORTLibrary Center 1,665,230 Educational Media Services 634,351 Academic Administration and Planning 2,671,120 Other 1,331,622 Total Academic Support 6,302,323

STUDENT SERVICES SUPPORTAdmissions and Records 1,388,975 Counseling and Career Services 4,045,639 Financial Aid Administration 899,000 Other 2,451,035 Total Student Services Support 8,784,649

PUBLIC SERVICE/CONTINUING EDUCATIONCommunity Education 253,557 Community Services 134,595 Total Public Service/Continuing Education 388,152

AUXILIARY SERVICES 9,382,801

OPERATIONS AND MAINTENANCE OF PLANTMaintenance 2,752,453 Custodial Services 2,334,105 Grounds 974,862 Campus Security 2,039,883 Transportation 118,379 Utilities 1,837,094 Other 532,936 Total Operations and Maintenance of Plant 10,589,712

INSTITUTIONAL SUPPORTExecutive Management 2,214,870 Fiscal Operations 2,054,961 Community Relations 489,381 Administrative Support Services 5,690,717 Board of Trustees 43,939 General Institutional 2,418,971 Institutional Research 368,116 Administrative Data Processing 3,690,724 Other 165,959 Total Institutional Support 17,137,638

SCHOLARSHIPS, STUDENT GRANTS, & WAIVERS 27,249,853

TOTAL CURRENT FUNDS EXPENDITURES 112,131,255$

*Current Funds include the Education; Operations and Maintenance; Auxiliary Enterprise; Restricted Purposes; Audit; and Liability, Protection, and Settlement Funds.

MORAINE VALLEY COMMUNITY COLLEGECOMMUNITY COLLEGE DISTRICT NUMBER 524

UNIFORM FINANCIAL STATEMENT #5CURRENT FUNDS* EXPENDITURES BY ACTIVITY

FOR THE YEAR ENDED JUNE 30, 2012

89.

91.

Crowe Horwath LLP Independent Member Crowe Horwath International

INDEPENDENT AUDITORS’ REPORT

The Board of Trustees Moraine Valley Community College – Community College District Number 524 Palos Hills, Illinois

We have audited the accompanying balance sheets of the Moraine Valley Community College – Community College District No. 524 (the College) Workforce Development – Business/Industry, State Adult Education (State Basic, Public Assistance, and Performance), and Career and Technical Education – Program Improvement Grants (Grant Programs), as of June 30, 2012, and the related statements of revenues, expenditures, and changes in fund balances for the year then ended. These financial statements are the responsibility of the College’s management. 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 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 includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and the significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. The financial statements presented are only for the Grant Programs and do not purport to, and do not, present fairly the financial position or results of operations of the College. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the College’s Workforce Development – Business/Industry, State Adult Education (State Basic, Public Assistance, and Performance), and Career and Technical Education – Program Improvement Grants as of June 30, 2012, and the revenues, expenditures, and changes in fund balances for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

92.

In accordance with Government Auditing Standards, we have also issued a report dated October 12, 2012 on our consideration of the College’s internal control over financial reporting of the Grant Programs and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. Our audit was conducted for the purpose of forming opinions on the financial statements for each of the grant programs referred to in the first paragraph. The ICCB Compliance Statements on pages 97 and 100 and the background information on page 104 are presented for purposes of additional analysis and are not a required part of the financial statements of the Grant Programs. 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 financial statements. The ICCB Compliance Statements have been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the ICCB Compliance Statements are fairly stated in all material respects in relation to the financial statements of the Workforce Development – Business/Industry, and State Adult Education (State Basic, Public Assistance, and Performance) Grant Programs as a whole. The background information has not been subjected to the auditing procedures applied in the audit of the financial statements referred to above and, accordingly, we express no opinion on it. 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 12, 2012

93.

Crowe Horwath LLP Independent Member Crowe Horwath International

INDEPENDENT AUDITORS’ 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 Moraine Valley Community College – Community College District Number 524 Palos Hills, Illinois

We have audited the accompanying financial statements of the Moraine Valley Community College – Community College District No. 524 (the College) Workforce Development – Business/Industry, State Adult Education (State Basic, Public Assistance, and Performance), and Career and Technical Education – Program Improvement Grants (Grant Programs), as of and for the year ended June 30, 2012, and have issued our report thereon dated October 12, 2012. We conducted our audits 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. Internal Control over Financial Reporting

Management of the College is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audits, we considered the College’s internal control over financial reporting of the Grant Programs as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the College’s internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the College’s internal control over financial reporting. 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 combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis.

94.

Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. Compliance and Other Matters

As part of obtaining reasonable assurance about whether the College’s 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 the financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audits 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. 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 12, 2012

SCHEDULE 3

ASSETS

Government Receivable -$

LIABILITIES AND FUND BALANCE

Accounts Payable - Accrued Payroll -

TOTAL LIABILITIES -

Fund Balance - Reserved for Encumbrances - Fund Balance - Unreserved -

TOTAL FUND BALANCE -

TOTAL LIABILITIES AND FUND BALANCE -$

MORAINE VALLEY COMMUNITY COLLEGE

BALANCE SHEETJUNE 30, 2012

COMMUNITY COLLEGE DISTRICT NUMBER 524

WORKFORCE DEVELOPMENT - BUSINESS/INDUSTRY GRANT PROGRAM

The accompanying notes to the financial statements are an integral part of this statement.95.

SCHEDULE 4

ActualREVENUE

State Sources 111,483$

EXPENDITURES

Current Year's Grant:Salaries 85,760 Employee Benefits 25,723 Materials and Supplies - Conference and Meeting Expenses -

TOTAL EXPENDITURES 111,483

Excess of Revenue Over (Under)Expenses -

Fund Balance July 1, 2011 -

Fund Balance June 30, 2012 -$

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCEWORKFORCE DEVELOPMENT - BUSINESS/INDUSTRY GRANT PROGRAM

MORAINE VALLEY COMMUNITY COLLEGE

FOR THE YEAR ENDED JUNE 30, 2012

COMMUNITY COLLEGE DISTRICT NUMBER 524

The accompanying notes to the financial statements are an integral part of this statement.96.

SCHEDULE 5

OPERATION OF WORKFORCE

DEVELOPMENTGENERAL OFFICE TOTAL

Salaries and Benefits** -$ 111,483$ 111,483$

Contractual Services - - -

Instructional Materials - - -

Instructional Equipment* - - -

Promotional Materials - - -

Staff Development** - - -

Conference and Meeting Expenses - - -

Travel** - - -

Costs of Operating a Business Assistance Center / Economic Development / Workforce Development Offices

Office Equipment* - - -

Utilities and Telephone - - -

Consumable Supplies - - -

Duplicating - - -

Facility Rental - - -

TOTALS -$ 111,483$ 111,483$ ***

* Sum of expenditures should be less than or equal to 25 percent of the district's total workforce development grant.

** Salaries charged to this grant should be paid commensurate with the percentage of time spent working on business and industry/economic development activities. Staff development and travel costs should only be paid for staff that spend 51 percent or more of their time on work in the business assistance center or economic development.

*** Sum of total expenditures (Column C) should equal total expenditures reported in Schedule of Revenue, Expenditures and Changes in Fund Balance plus year-end encumbrances.

BUSINESS/INDUSTRY GRANTTOTAL EXPENDITURES FOR ICCB GRANT FUNDS ONLY

FOR THE YEAR ENDED JUNE 30, 2012

EXPENDITURES

MORAINE VALLEY COMMUNITY COLLEGE COMMUNITY COLLEGE DISTRICT NUMBER 524

ICCB COMPLIANCE STATEMENT FOR WORKFORCE DEVELOPMENT

97.

SCHEDULE 6

Total State Basic Public Aid Performance (Memorandum Only)

ASSETS

Cash -$ -$ -$ -$ Accounts Receivable 71,078 15,249 88,009 174,336 Due From Other Funds - - - - Inventories - - - - Deferred Expenditures - - - -

TOTAL ASSETS 71,078$ 15,249$ 88,009$ 174,336$

LIABILITIES AND FUND BALANCE

LIABILITIESAccounts Payable 181$ -$ 7,725$ 7,906$ Intergovernmental Payable to ICCB - - - - Salaries and Benefits Payable 508 199 1,141 1,848 Accrued Expenditures - - - - Deferred Revenue - - - - Due to Other Funds 70,389 15,050 79,143 164,582

TOTAL LIABILITIES 71,078 15,249 88,009 174,336

FUND BALANCEFund Balance - - - -

TOTAL FUND BALANCE - - - -

TOTAL LIABILITIES AND FUND BALANCE 71,078$ 15,249$ 88,009$ 174,336$

FOR THE YEAR ENDED JUNE 30, 2012

MORAINE VALLEY COMMUNITY COLLEGE

COMBINED BALANCE SHEET STATE ADULT EDUCATION RESTRICTED FUNDS

COMMUNITY COLLEGE DISTRICT NUMBER 524

The accompanying notes to the financial statements are an integral part of this statement.98.

SCHEDULE 7

Total State Basic Public Aid Performance (Memorandum Only)

REVENUE

Grant Revenue 284,313$ 60,995$ 352,036$ 697,344$

EXPENDITURES BY PROGRAM

Instruction 132,158 36,829 54,491 223,478 Social Work Services 25,201 - 33,914 59,115 Guidance Services 50,339 - 160,396 210,735 Assistive and Adaptive Equipment - - - - Assessment and Testing 51,240 - 1,923 53,163 Student Transportation Services - - - - Literacy Services - - - - Child Care Services - - - -

Subtotal Instructional andStudent Services 258,938 36,829 250,724 546,491

Program Support:Improvement of Instructional Services 785 125 2,840 3,750 General Administration 3,780 218 62,998 66,996 Operation and Maintenance of

Plant Services - 2,982 3,675 6,657 Workforce Coordination - - - - Data and Information Services - 16,251 6,607 22,858 Indirect Costs 20,810 4,590 25,192 50,592

Subtotal Program Support 25,375 24,166 101,312 150,853

TOTAL EXPENDITURES: 284,313 60,995 352,036 697,344

Excess of Revenue Over (Under)Expenditures - - - -

Fund Balances July 1, 2011 - - - -

Fund Balances June 30, 2012 -$ -$ -$ -$

FOR THE YEAR ENDED JUNE 30, 2012

MORAINE VALLEY COMMUNITY COLLEGE

COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCESSTATE ADULT EDUCATION RESTRICTED FUNDS

COMMUNITY COLLEGE DISTRICT NUMBER 524

The accompanying notes to the financial statements are an integral part of this statement.99.

SCHEDULE 8

Audited Expenditure AmountState Basic

MORAINE VALLEY COMMUNITY COLLEGE

ICCB COMPLIANCE STATEMENT FOR THEADULT EDUCATION AND FAMILY LITERACY GRANT

FOR THE YEAR ENDED JUNE 30, 2012EXPENDITURES AMOUNTS AND PERCENTAGES FOR ICCB GRANT FUNDS ONLY

COMMUNITY COLLEGE DISTRICT NUMBER 524

State Public Assistance Audited Expenditure Amount

Actual Expenditure Percentage

General Administration (9% Maximum Allowed 3,780$ 1.3%

Instruction (45% Minimum Required) 132,158$

Actual Expenditure Percentage

46.5%

Instruction (45% Minimum Required) 36,829$ 60.4%

General Administration (9% Maximum Allowed 218$ 0.4%

100.

SCHEDULE 9

ASSETS -$

LIABILITIES AND FUND BALANCE

LIABILITIES -$

FUND BALANCE -

TOTAL LIABILITIES AND FUND BALANCE -$

MORAINE VALLEY COMMUNITY COLLEGE

BALANCE SHEETJUNE 30, 2012

COMMUNITY COLLEGE DISTRICT NUMBER 524

CAREER AND TECHNICAL EDUCATION - PROGRAM IMPROVEMENT GRANT

The accompanying notes to the financial statements are an integral part of this statement.101.

SCHEDULE 10

ActualREVENUE

State Sources 45,323$

EXPENDITURES

Current Year's Grant: Salaries - Employee Benefits - Contractual Services - Instructional Equipment 28,318

Materials and Supplies 15,986 Conference and Meeting Expense - Curriculum Development 1,019

Staff Development -

TOTAL EXPENDITURES 45,323

Excess of Revenue Over (Under)Expenditures -

Fund Balance July 1, 2011 -

Fund Balance June 30, 2012 -$

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCECAREER AND TECHNICAL EDUCATION - PROGRAM IMPROVEMENT GRANT

MORAINE VALLEY COMMUNITY COLLEGE

FOR THE YEAR ENDED JUNE 30, 2012

COMMUNITY COLLEGE DISTRICT NUMBER 524

The accompanying notes to the financial statements are an integral part of this statement.102.

MORAINE VALLEY COMMUNITY COLLEGE COMMUNITY COLLEGE DISTRICT NUMBER 524

STATE GRANTS NOTES TO FINANCIAL STATEMENTS

For the year ended June 30, 2012

103.

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES General: The accompanying statements include only those transactions resulting from the Workforce Development – Business/Industry, State Adult Education Restricted Funds, and Career and Technical Education-Program Improvement grants. These transactions have been accounted for in a Restricted Purpose Fund.

Basis of Accounting: The statements have been prepared on the modified accrual basis. Expenditures include all accounts payable, representing liabilities for goods and services actually received as of June 30, 2012. 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. Fixed Assets: Fixed asset purchases are recorded as capital outlay and not capitalized. NOTE 2 - PAYMENTS OF PRIOR YEAR’S ENCUMBRANCES Payments of prior year’s encumbrances for goods received prior to August 31 are reflected as expenditures during the current fiscal year.

MORAINE VALLEY COMMUNITY COLLEGE COMMUNITY COLLEGE DISTRICT NUMBER 524

BACKGROUND INFORMATION ON STATE GRANT ACTIVITY (UNAUDITED)

104.

Unrestricted Grants Base Operating Grants: General operating funds provided to colleges based upon credit enrollment with a small portion of the allocation based upon gross square footage of space at the college. Equalization Grants: Grants provided to institutions with less than the statewide average local tax dollars available per full-time equivalent student. Restricted Grants/Special Initiatives Workforce Development-Business/Industry Grants: Provides funding for a business/industry center at every college to provide a variety of employment training and business services outside of the classroom. Career and Technical Education-Program Improvement Grants: Grant funding recognizes that keeping career and technical education 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. Restricted Adult Education Grants/State 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 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 any 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.

SCHEDULE OF ENROLLMENT DATA AND OTHER BASES UPON WHICH CLAIMS WERE FILED

RECONCILIATION OF SEMESTER CREDIT HOURS

RECONCILIATION OF TOTAL REIMBURSABLE SEMESTER CREDIT HOURS

RECONCILIATION OF IN-DISTRICT/CHARGEBACK REIMBURSABLE CREDIT HOURS

MORAINE VALLEY COMMUNITY COLLEGE

COMMUNITY COLLEGE DISTRICT NUMBER 524

JUNE 30, 2012

105.

Crowe Horwath LLP Independent Member Crowe Horwath International

INDEPENDENT ACCOUNTANTS’ REPORT

The Board of Trustees Moraine Valley Community College – Community College District Number 524 Palos Hills, Illinois We have examined the accompanying Schedule of Enrollment Data and Other Bases Upon Which Claims Were Filed, of Moraine Valley Community College – Community College District No. 524 for the year ended June 30, 2012. The Schedule of Enrollment Data and Other Bases Upon Which Claims Were 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 the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, and accordingly, included examining, on a test basis, evidence supporting the Schedule of Enrollment Data and Other Bases Upon Which Claims Were 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 Were Filed, in all material respects, is fairly presented in accordance with the provisions of the aforementioned guidelines. The supplementary information on pages 109 and 110 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 Were Filed and accordingly, we express do not express an opinion or provide any assurance on them.

106.

In accordance with Government Auditing Standards, we have also issued a report October 12, 2012 on our consideration of the College’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit.

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 12, 2012

SCHEDULE 11Page 2 of 2

MORAINE VALLEY COMMUNITY COLLEGECOMMUNITY COLLEGE DISTRICT NUMBER 524

RECONCILIATION OF TOTAL SEMESTER CREDIT HOURS FOR THE YEAR ENDED JUNE 30, 2012

Total Total Restricted Total Unrestricted Credit Hours Credit Hours

Unrestricted Credit Certified to the Total Restricted Credit Certified to the Hours ICCB Difference Hours ICCB Difference

Baccalaureate 210,678.0 210,678.0 - 40.0 40.0 -

Business Occupational 18,512.5 18,512.5 - - - -

Technical Occupational 28,592.0 28,592.0 - - - -

Health Occupational 24,379.5 24,379.5 - - - -

Remedial Development 32,904.0 32,904.0 - 100.0 100.0 -

Adult Basic/Secondary Education - - - 13,119.0 13,119.0 -

Total 315,066.0 315,066.0 - 13,259.0 13,259.0 -

Difference

In- District Residents 273,668.0 273,668.0 -

Out-of-District on Chargeback or Contractual Agreement 1,008.5 1,008.5 -

Total 274,676.5 274,676.5 -

Total Reimbursable Total Reimbursable Certified to ICCB DifferenceDual Credit 10,907.0 10,907.0 -

Dual Enrollment 449.0 449.0 -

Total 11,356.0 11,356.0 -

DifferenceBaccalaureate - - -

Business Occupational - - -

Technical Occupational - - -

Health Occupational - - -

Remedial Development - - -

Adult Basic/Secondary Education - - -

Total - - -

Total Correctional Credit HoursTotal Correctional Credit Hours

Certified to the ICCB

RECONCILIATION OF IN-DISTRICT/CHARGEBACK AND COOPERATIVE/CONTRACTUAL AGREEMENT CREDIT HOURS

Total Attending as Certified to the ICCBUnrestricted and Restricted

RECONCILIATION OF TOTAL CORRECTIONAL SEMESTER CREDIT HOURS FOR THE YEAR ENDED JUNE 30, 2012

(Unrestricted and Restricted)Total Attending

108.

SCHEDULE 12

109.

MORAINE VALLEY COMMUNITY COLLEGE

COMMUNITY COLLEGE DISTRICT NUMBER 524 RESIDENCY POLICY A resident must live in the Moraine Valley Community College district at least 30 days prior to the start of the semester and meet at least one of these criteria:

• Under 18 whose parents or legal guardians reside in the college district;

• Under 18 who is married and who is established in a permanent family residence in the district;

• Under 18 who resides in the district in a dwelling he or she has purchased; and or

• 18 or older who resides in the district, providing residence was not for the sole purpose of attending college.

Refer to the Moraine Valley “At a Glance” section of our college catalog for a map of the Moraine Valley district. To verify your residency status, call 708/974-2110. Tuition rates are determined by the legal residence of the student. These rates are lower for residents of the Moraine Valley Community College district than they are for out-of-district residents who attend Moraine Valley. A student who temporarily moves into the district for the purpose of attending the College at a reduced tuition rate will not be considered as having established a bona fide residence within the district. It is the student’s responsibility to demonstrate residency status. A student may be asked to display verification of residence before class registration can be completed. The following documents may be presented to verify residency: Illinois driver’s license or state ID, property tax statement, vehicle registration, copy of lease or purchase agreement, utility or telephone bill, or voter’s registration card. Documents or bills that are used to verify residence are required to be in the student’s name. Residence status is determined at the time of registration. It will not be changed after the refund period for that semester. The Dean of Enrollment Services or a chosen representative will determine whether an applicant meets the residency criterion.

SCHEDULE 13

TAX LEVY YEAR

2011 10,788,573,903$

2010 12,844,448,092

2009 12,889,581,841

2008 12,746,484,863

2007 11,319,414,709

2006 10,637,643,231

2005 10,478,199,596

2004 8,913,225,370

2003 8,548,717,307

2002 8,564,047,922

Source:

Cook County Treasurer's Office

EQUALIZED ASSESSED VALUATION

MORAINE VALLEY COMMUNITY COLLEGECOMMUNITY COLLEGE DISTRICT NUMBER 524

SUMMARY OF ASSESSED VALUATIONS FOR THE LAST TEN LEVY YEARS

110.

Comprehensive AnnualFinancial Report

Fiscal Year EndedJune 30, 2012

Community CollegeDistrict Number 524Palos Hills, IL

12393F

Board of Trustees Joseph P. Murphy, Chairman

Patrick D. Kennedy, Vice ChairmanSusan Murphy, Secretary

John R. ColemanLisa Szynalski

Sandra S. Wagner Mark D. Weber

Taylor Geraghty, Student TrusteeDr. Vernon O. Crawley, College President

It is the policy of Moraine Valley Community College not to discriminateon the basis of sex, race, age, religion, national or ethnic origin, or disability

in its educational programs, activities or employment practices.