Board Report August 2024

and reserves directly attributable to being a member of an insurance pool, under Section 9-103; ii. Pay the costs of and principal and interest on bonds issued under Section 9-105; iii. Pay judgments and settlements under Section 9-104; and iv. Discharge obligations under Section 34-18.1 of The School Code, as now or hereafter amended, and to pay the cost of risk management programs. Funds raised pursuant to the Act shall only be used for purposes of the Act, including protection against and reduction of any liability or loss described hereinabove and under Federal or State common or statutory law, the Workers' Compensation Act, the Workers' Occupational Diseases Act and the Unemployment Insurance Act. Section 17-2.5 of the School Code (105 ILCS 5/17-2.5) provides that a school district may levy a tax to pay the following risk management costs:  Settlements or judgments under Section 9-102 of the Act;  Protecting itself or its employees against liability, property damage or loss, including all costs and reserves of being a member of an insurance pool, under Section 9-103 of that Act;  Principal and interest on bonds issued under Section 9-105 of that Act;  Tort judgments or settlements under Section 9-104 of that Act, to the extent necessary to discharge such obligations; and  Risk care management programs in accordance with Section 9-107 of that Act. In 2007, the Illinois Appellate Court, Second District, set forth the essential elements for managing risk pursuant to the Act (372 Ill. App. 3rd, 562, 310 Ill. Dec. 37, the “Freeport Case”). The elements and techniques set forth in the Risk Management Process and Risk Management Techniques below are consistent with the Freeport decision. Step One: Identify and analyze loss exposures and the circumstances that give rise to the imposition of liability on the District or its employees. This includes the identification of persons and property that are at risk, the conditions that create the potential for loss, and the frequency and severity of such conditions and loss. Step Two: Select techniques to mitigate and manage such exposure to risk of loss and the conditions that create the potential for loss. This includes identifying techniques to manage and avoid exposure and selecting those that are most appropriate and work best for each exposure. Techniques may involve ceasing an activity, eliminating the circumstances and conditions that create the potential for loss, changing conduct and process of an activity to reduce the likelihood of loss, transferring risk of loss to others through insurance or waivers, and accepting and acknowledging that certain risky activities must occur without a special effort to control loss. Techniques will be determined based on the following criteria:  Feasibility  Effectiveness RISK MANAGEMENT PROCESS

3