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 — CONTINUED

G. General Fixed Assets General Fixed Assets have been acquired for general governmental purpose. At the time of purchase, assets are recorded as disbursement in the Governmental or Activity Funds and capitalized at cost in the general fixed assets account group. Donated general fixed assets are stated at estimated fair market value as of the date of acquisition. There are no lease/purchase contracts. Depreciation accounting is not considered applicable (except to determine the per capita tuition charge). The District has adopted a capitalization threshold policy of $500 for capital assets and depreciation methods with guidelines established by the Illinois State Board of Education Description Method Life in Years Depreciable Land Straight-Line 50 Permanent Buildings Straight-Line 50 Temporary Buildings Straight-Line 20 Infrastructure Improvements Straight-Line 20 Equipment Straight-Line 3-10 H. Subscription Based Information Technology Arrangements (SBITAs) The District has elected not adopt the accounting standard for SBITA expenditures when paid and does not include the related commitments in the Long-Term Debt Account Group. The District had no applicable contracts subject to the standard. NOTE 2— FUND BALANCE REPORTING According to Government Accounting Standards, fund balances are to be classified into five major classifications; Nonspendable Fund Balance, Restricted Fund Balance, Committed Fund Balance, Assigned Fund Balance, and Unassigned Fund Balance. The Regulatory Model followed by the District only reports Reserved and Unreserved Fund Balances. Below are definitions of the differences and a reconciliation of how these balances are reported. A. Nonspendable Fund Balance The nonspendable fund balance classification includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. The "not in spendable form" criterion includes items that are not expected to converted to cash, for example inventories and prepaid amounts. Due to the cash basis nature of the district all such items are expensed at the time of purchase, so there is nothing report for this classification. B. Restricted Fund Balance The restricted fund balance classification refers to amounts that are subject to outside restrictions, not controlled by the entity. Things such as restrictions imposed by creditors, grantors, contributors, or laws and regulations of other governments, or imposed by law through constitutional provisions or enabling legislation. Special Revenue Funds are by definition restricted for those specified purposes. The District has several revenue sources received within different funds that also fall into these categories —

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