Board Report October 2025

PONTIAC TOWNSHIP HIGH SCHOOL DISTRICT NO. 90 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2025

NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The District's accounting policies conform to the cash basis of accounting as defined by the Illinois State Board of Education Audit Guide. A. Principles Used to Determine Scope of Entity The District's reporting entity includes the District's governing board and all related organization for which the District exercises oversight responsibility. The District has developed criteria to determine that no other outside agency meets the above criteria and, therefore, no other agency has been included as a component unit in the District's financial statements. In addition, the District is not aware of any entity, which would exercise such oversight, which would results in the District being considered a component unit of the entity. The District, in conjunction with six other area school districts, has joined the Livingston Area Education for Employment Center and the Livingston Area Career Center. The joint agreements charge each district tuition for agriculture and vocational career related expenditures during the year ended June 30, 2025. The Pontiac Township High School District No. 90 is the administrative agent for these programs, but each participating school has representation on both organizations' governing boards. Therefore, the activities of each of the joint agreements are not included in the District's financial statements. B. Basis of Presentation — Fund Accounting The accounts of the District are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets and liabilities (arising from cash transactions), fund balance, cash receipts and cash disbursement. The District maintains individual funds are required by the State of Illinois. The various funds are summarized by type in the financial statements. These funds are groups as required for reports filed with the Illinois State Board of Education. District resource are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The following fund types and account groups are used by the District: GOVERNMENTAL FUND TYPES Governmental Funds are those through which most governmental functions of the District are financed. The acquisition, use and balances of the District's expendable financial resources and the related liabilities (arising from cash transactions are accounted for through governmental funds). The General Fund, which consists of the Educational Fund and the Operations, Building and Maintenance Fund, is the general operating fund of the District. It is used to account for all financial resources except those required to be accounted for in another fund. Special Education is included in these funds. Student Activity Funds are also included in the Education fund. The activity funds assets are held by the District, which has direct involvement with decisions on how funds are attained and spent. The activity funds are reserved by the District for use in clubs and organizations for the benefit of the students and teachers. Special Revenue Funds, which include the Transportation Fund, Tort Fund, Capital Projects Fund, and the Illinois Municipal Retirement Fund, are used to account for the proceeds of specific revenue sources (other than those accounted for in the Debt Service Fund or Fiduciary Funds) that are legally restricted to cash disbursement for specified purposes. The Debt Service Fund (Bond and Interest Fund) accounts for the accumulation of resources for, and the payment of general long-term debt principle, interest and related costs.

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