memo - fye11 audit recap fye11 audit with memo.pdfagreement. $687,794 in alarm fees were received...

DuPage Public Safety Communications Angela Athitakis, PHR

600 Wall Street Finance/Human Resources Manager Glendale Heights, IL 60139 [email protected] 630.260.7505 Direct Line

630.893.2170 Facsimile

Memorandum

TO: Brian Tegtmeyer

DATE: September 20, 2011

FROM: Angela Athitakis ADA

CC: Executive Committee

RE: FYE11 Audit Recap

The FYE11 audit of DU-COMM’s financials was completed by Lauterbach & Amen LLC. This was our last year with the auditing firm as part of our four year contract. The fieldwork and review again went smoothly and was noted by Lauterbach & Amen staff that we were well organized and ready for the audit. The goal each fiscal year is to be able to project revenue and expenses as accurately as possible in a budget that is basically designed to provide accountability for expenses made during the year. There were some key factors that impacted revenue and expenses that were not originally budgeted for with the addition of the four DuPage South agencies. Overall in FYE11, between all four budgets (Operations, Capital, Alarm & Tower), DU-COMM had an excess of revenue over expenses of $323,914 ($90,685 net asset increase + $233,229 depreciation expense = $323,914). The following information will help explain any large variances between the budget and the final audited amounts. Operations Budget Revenue: The auditors do not include internal transfers from operations reserve, capital, alarm, or tower budgets in their statement of revenues, expenses and changes in net assets. A total of $550,000 was budgeted to be transferred into operations from reserves, but was not needed due to increased revenue and reduced spending. The alarm budget transferred $178,000 to the operations budget which offsets the cost of Alarm Operator salaries, and the tower budget transferred $105,000 to offset a portion of Technician salaries. In addition to the internal transfers, the operations budget revenue is comprised of $7,433,054 in shares paid by member agencies and $240,986 in additional revenue. That additional revenue is comprised of DuPage South Agencies’ 3% admin fee ($39,207), ETSB contract fee reimbursement for the radio project management ($99,400), interest earnings ($11,327), Hanover Park Township EMA ($4,000), IPRF safety grant ($1,600), the selling of disposed items through propertyroom.com ($306), Rebills ($81,822) and other miscellaneous revenues. Salary, Wages, FICA & IMRF: Budget $6,468,700 Actual $6,113,303 Difference $355,397 Several part-time positions remained unfilled for almost all of the fiscal year, and one Operations Manager position remained unfilled for four months. The unfilled positions and lower IMRF & unemployment employer contribution rates resulted in a cost savings to DU-COMM.

Memorandum -Continued Angela Athitakis, PHR Finance/Human Resources Manager

2

Phone Lines: Budget $350,000 Actual $376,239 Difference ($26,239) Analog phone lines continue to be one of our largest expenses. Phone lines that were moved from AT&T in FYE10 to Call One continue to save money as evident by the fact that phone expenses were $9,184 lower in FYE11 than in FYE10 even with the addition of DuPage South agencies. However the overall phone expenses still exceeded our budget estimate. Insurance - Benefits: Budget $624,947 Actual $557,644 Difference $67,303 DU-COMM introduced high deductible PPO plan options in FYE10 that reduced our cost in premiums and were well received by employees. In FYE11 we enhanced those options by increasing the deductible, but offered an HRA or HSA to offset the deductible increase. This lowered DU-COMM’s budgeted premium increase from 15% to 2%.

Capital Budget Revenue: The revenue received for the FYE11 capital budget was funded by a $450,000 transferred from the alarm budget. In addition, a total of $47,000 was transferred from capital reserves. Interest earned was still lower than expected, but was offset by reduced expenses. Expenses: Several capital projects: console furniture ($322,593), radio network equipment ($207,129), and scheduling software ($25,000) were budgeted for FYE11, but deferred to future budgets due to timing of projects.

Alarm Budget Revenue: Alarm revenue for FYE11 exceeded expectations. The revenue received was $23,794 more than budgeted due to an increase in alarms monitored and changes by some agencies opting out of the ADT master agreement. $687,794 in alarm fees were received from ADT, Norcomm, Lisle-Woodridge FPD, Wheaton FD, and Elmhurst FD. Maintenance Agreement: Budget $25,000 Actual $30,810 Difference ($5,810) A new maintenance agreement with ADT was finalized during FYE11 that covers the new muxes for the alarm system. This agreement was estimated at $25,000, but was finalized at $29,216. Additional transition costs and service calls make up the rest of the expenses in this line item.

Tower Budget Revenue: DU-COMM tower revenue is primarily based on the various tower leases. The revenue was slightly higher than budgeted due to annual lease increases, based on CPI, that were budgeted on the conservative side. A total of $165,412 was received from tower leases and tax reimbursements. A total of $78,000 was transferred from tower reserves, as budgeted, for additional revenue needed. GH Tower Repair: Budget $54,000 Actual $10,135 Difference $43,865 The HVAC and electrical upgrade at the 170 Wall St (B-building) was not needed to the extent originally estimated. Several tower projects: tower drawings from CSEI ($8,500) and engineering studies for the Elmhurst, Hanover Park, and Wheaton towers ($3,000) were budgeted for FYE11, but deferred to future budgets due to timing of projects.

Memorandum -Continued Angela Athitakis, PHR Finance/Human Resources Manager

3

Management Letter Current Recommendations: There are no current recommendations noted by the auditors. Prior FYE10 Recommendations: 1. GASB No. 54 New GASB standards require that governmental fund type descriptions be classified differently. DU-COMM implemented changes to language, i.e.: “assigned funds” rather than “restricted funds”, during the FYE12 budgeting process. 2. Capital Assets Policy The status is indicated in the management letter and due to be completed in FYE12.

DUPAGE PUBL¡G SAFETY GOMMUI{IGATIONS,rLLlt{ots

MANAGEMET{T LETTER

FOR THE YE/AR EI{DEDAPRTL g0,r 21011

Lauterbach & Amen, LLP27W457 WARRENVTLLE ROAD . WARRENVILLE, ILLINOIS 60555-3902

PHONE (630) 393-1483 / FAX (630) 393-2s16

CERTIFIED PUBLIC ACCOUNTANTS

AugustlT, 2011

Members of the Board of DirectorsDuPage Public Safety Communications

In planning and performing our audit of the financial statements of DuPage Public Safety

Communications, for the year ended April 30, 2017, we considered its internal control structure inorder to determine our auditing procedures for the purpose of expressing our opinion on the

hnancial statements and not to provide assurance on the intemal control structure.

We do not intend to imply that our audit failed to disclose commendable aspects of your system and

structure. For your consideration we herein submit our comments and suggestions which are

designed to assist in effecting improvements in internal controls and procedures. Those less

significant matters, if any, which arose during the course of the audit, were reviewed withmanagement as the audit field work progressed.

The accompanying comments and recommendations are intended solely for the information and use

of the Finance Committee, Board of Directors, management, and others within DuPage PublicS afety Communications.

We will review the status of these comments during our next audit engagement. We have already

discussed many of these comments and suggestions with various DuPage Public Safety

Communications personnel. We would be pleased to discuss our coÍrments and suggestions infurther detail with you at your convenience, to perform any additional study of these matters, or toreview the procedures necessa.ry to bring about desirable changes.

We commend the finance department for the well prepared audit package and we appreciate the

courtesy and assistance given to us by the entire DuPage Public Safety Communications' staff.

/tPLAUTERBACH & AMEN, LLP

PRIOR RE C OMMEi\DATIONS

1 GASB STATEMENT NO. 54 FUND BALANCE RNPORTING ANT)

GOVERNMENTAL TYPE DR,SCRIPTIONS

Comment

GASB Statement No. 54 - Fund Balance Reporting and Governmental Fund Type

Descriptiozs presents improved fund balance classifications for governmental funds,providing increased uniformity in financial reporting. The Statement also provides a moreconcise definition of the govemmental fund types.

Fund Balance Reporting. The Statement creates new classifications of governmental fundbalance based on the extent of constraints on the use of funds. Governmental fundbalance upon the implementation of GASB Statement No. 54 will be classified under thefollowing categories: nonspendable, restricted, committed, assigned, and unassigned.

Nonspendable- amounts that cannot be spent because they are either (a) not inspendable form or (b) legally or contractually required to be maintained intact (Ex:inventories or prepaids).

Restricted - amounts that are (a) externally imposed by creditors, grantors,contributors, or laws or regulations of other govemments or (b) imposed by lawthrough constitutional provisions or enabling legislation (Ex: property taxes).

Committed- amounts that can only be used for specific purposes by constraintsimposed by formal action of the Board of Directors - usually by passage ofordinance/resolution (Ex: hotel/motel taxes committed to Board of Directors specifiedexpenditures).

Assigned - any remaining positive amounts not classihed as nonspendable, restricted,or committed (for all governmental funds other than the General Fund). For the

General Fund, amounts constrained for the intent to be used for a specific purpose by(a) goveming body itself or (b) a body or official with authority (Ex: Finance Directorassigning fund balance to specific future capital projects).

Unassigned - amounts of positive residual fund balance for the General Fund andnegative fund balances for all other governmental funds.

Recommendation

Although the DuPage Public Safety Communications operates as a business-type activity,it would be advantageous for the DuPage Public Safety Communications conduct areview of its current net asset classifications. This review should include an

understanding of current fiscal policies that have been approved by the Board ofDirectors, as well as fiscal policies followed by management. An analysis should beconducted to determine the type of potential constraint and the corresponding dollaramount that will need to be reported in the financial statements.

Status

This comment has been implemented and will not be repeated in the future.

PRIOR RECOMMENDATIONS - Continued

2. CAPITAL ASSETS POLICY

Comment

DuPage Public Safety Commr¡nications does not have a formal capital asset policy toprovide guidance on the financial aspects and stewardship of capital assets.

'With respect to

the financial aspects, guidance should be provided on the minimum dollar amount and

minimum useful life for an item to be capitalized as a capital asset. Stewardship issues

include the physical custody of capital assets.

Recommendation

We recommended thatDuPage Public Safety Communications adopt a capital asset policy,which addresses both financial, and stewardship issues. As part of developing the capitalasset policy, a review of the current capitalization amount and estimated useful life shouldbe performed for both financial reporting and stewardship. The capital asset policy shouldalso establish standard depreciation methods and useful lives to be applied to specificcategories of assets. With respect to stewardship, the policy should address location ofassets, tagging, physical access and security and frequency of periodic inventories. Once thepolicy has been established, we recommend DuPage Public Safety Communicationsundertake a complete inventory and valuation of capital assets to create detail capital asset

records that are in compliance with the new policy. Any capital assets below the

capitalization threshold should be removed.

Status

DuPage Public Safety Communications has not implemented this comment and it will be

repeated in the future.

Management Response

A new capital asset policy was developed and was recommended by DU-COMM'sExecutive Committee to be approved at the October 20ll Board of Directors Meeting.80% of all assets have been tagged and recorded in the new AssetManage program and

the remaining items will be completed in FYE12.

DIJPAGE PUBLICSAFETY COMMUNICATIONS

ANNUALFINANCIAL REPORT

FOR THE FISCALYEARENDEDAPRIL 30,2OIT

o

9-1-1

$

DUPAGE PUBLIC SAFETY COMMT]IIICATIONS

Table of Contents

PAGE

FINANCIAL SECTION

INDEPENDENT AUDITORS' REPORT

MANAGEMENT'S DISCUSSION AND ANALYSIS...

FINANCIAL STATEMENTS

Statement of Net Assets

Statement of Revenues, Expenses andChanges in Net Assets - Budget and Actual....

Statement of Cash Flows.....

Notes to Financial Statements

REQUIRED SUPPLEMENTARY INF'ORMATION

Illinois Municipal Retirement Fund - Schedule of Funding Progressand Employer Contributions.......

Other Post-Employment Benefit Plan - Schedule of Funding Progress

SUPPLEMENTAL SCHEDULES

Schedule of Detailed Expenses - Budget and Actual.,

l-2

....,..MD&A 1 - 5

aJ

4

5

..6 -20

.21

and Employer Contributions....... .......,.22

23 -28

Lauterbach & Amen, LLP27W4s7 WARRENVTLLE ROAD . WARRENVTLLE, tLLINOIS 60s55-3902

pHoNE (630) 393-'t 483 / FAX (630) 393-2s16

CERTIFIED PUBLIC ACCOUNTANTS


August 17,20II

Board of DirectorsDuPage Public Safety CommunicationsGlendale Heights, Illinois

We have audited the accompanying financial statements of the business-type activities of DuPage PublicSafety Communications, Illinois as of and for the year ended April 30, 2011, which collectively compriseDuPage Public Safety Communications' basic financial statements as listed in the accompanying table ofcontents. These financial statements are the responsibility of DuPage Public Safety Communications,Illinois'management. Our responsibility is to express opinions on these f,rnancial statements based on ouraudit.

Vy'e conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica. Those standards require that we plan and perform the audit to obtain reasonable assurance about

whether the basic financial statements are free of material misstatement. An audit includes examining, ona test basis, evidence supporting the amounts and disclosures in the basic financial statements. An auditalso includes assessing the accounting principles used and signiflrcant estimates made by management, as

well as evaluating the overall financial statement presentation. We believe that our audit provides a

reasonable basis for our opinions.

In our opinion, the financial statements referred to above present fairly, in all material respects, the

respective financial position of the business-type activities of DuPage Public Safety Communications,Illinois as of April 30, 2011, and the respective changes in financial position and, where applicable, cash

flows thereof for the year then ended in conformity with accounting principles generally accepted in the

United States of America.

Accounting principles generally accepted in the United States of America require that the management'sdiscussion and analysis and budgetary comparison information be presented to supplement the basic

financial statements. Such information, although not a part of the basic financial statements, is required bythe Govemmental Accounting Standards Board, who considers it to be an essential part of financialreporting for placing the basic financial statements in an appropriate operational, economic, or historicalcontext. We have applied certain limited procedures to the required supplementary information inaccordance with auditing standards general accepted in the United States of America, which consisted ofinquiries of management about the methods of preparing the information and comparing the informationfor consistency with management's responses to our inquiries, the basic f,rnancial statements, and other

knowledge we obtained during our audit of the basic financial statements. We do not express an opinionor provide any assurance on the information because the limited procedures do not provide us withsufficient evidence to express an opinion or provide any assurance.

DuPage Public Safety Communications, IllinoisAugust l7,20llPage2

Our audit was conducted for the purposes of forming opinions on the financial statements that collectivelycomprise DuPage Public Safety Communications, Illinois' financial statements as a whole. Thesupplemental information is presented for purposes of additional analysis and are not a required part ofthe financial statements. The supplemental information is the responsibility of management and werederived from and relate directly to the underlying accounting and other records used to prepare thefinancial statements. The information has been subjected to the auditing procedures applied in the audit ofthe financial statements and certain additional procedures in accordance with auditing standards generallyaccepted in the United States of America. In our opinion, the information is fairly stated in all materialrespects in relation to the financial statements as a whole.

LAUTERBACH & AMEN, LLP

2

MANAGEMENT'S DISCUSSION AI\D ANALYSIS

DUPAGE PUBLIC SAFETY COMMUNICATIONSMANAGEMENT'S DISCUSSION AND ANALYSIS

General lnformation

DuPage Public Safety Communications (DU-COMM) is an intergovernmental agency

formeá in 1g75 to provide public safety communications to police and fire agencies. DU-

COMM currently serves thirty agencies covering 750,000+ residents within DuPage County.

DU-COMM receives citizens' request for Police, Fire, and EMS on incoming 9-1-1 lines,

non-emergency lines, radio and direct connect fire alarms. DU-COMM dispatches and

monitors ál¡ member agency personnel on six police and four fire radio channels. DU-

COMM receives over 250,000 9-1-1 calls annually in addition to processing member agencyrequests which result in a total of 500,000 calls for service annually.

DU-COMM is comprised of three functional departments: Operations, Support Services, and

Administration.

Inside the Operations department, 9-1-1 Telecommunicators answer calls from citizens and

dispatch first responders to assist. DU-COMM has fifty-three full-time Telecommunicatorsand two part-time Telecommunicators.

The Operations department is under the direct control of the Deputy Director and supervisedby six full{ime Operations Managers. The department is also supported by a TrainingManager and EMD-Q Coordinator. The Training Manager is responsible for providing all

training for Operations personnel. The EMD-Q Coordinator handles quality assurance for the

EMD (Emergency Medical Dispatch) program and is also involved in related continuingeducation.

The Support Services department has two divisions. The first is Technical Services;consisting of three full-time, and one paft-time, technicians. Technical Services personnel

are responsible for the installation and maintenance of the agency's radio infrastructure in

addition to DU-COMM's facility. The second division is MIS; currently staffed with three full-

time contract emptoyees and one part-time GIS Coordinator providing support and systemadministration for all of DU-COMM's computer technology. The MIS staff supports the CAD(Computer Aided Dispatch) and related systems which Telecommunicators and fieldpersonnel utilize. The Support Services Manager oversees the department.

The Administrative department consists of the Executive Director, Deputy Director,

Finance/HR Manager, Executive Secretary, and a part-time Finance Clerk. Theadministrative staff provides support functions including payroll, benefit administration,finance, and overall management and leadership of the agency.

This Management's Discussion and Analysis is a required supplementary element of thereporting model adopted by the GovernmentalAccounting Standards Board (GASB) in itsStatement No. 34. The purpose is to provide an overview of the financial activities of DU-

COMM based on currently known facts, decisions, or conditions.

MD&A 1

DUPAGE PUBLIC SAFETY COMMUNIGATIONSMANAGEMENT'S DISGU SSION AND ANALYSIS


April30,2011

Current Assets

Cash and Investments

Accounts Receivable

Prepaid Equipment

Prepaid Insurance

Total Current Assets

Noncurrent Assets

Capital Assets

Nondepreciable CaPital Assets

Depreciable CaPital Assets

DepreciationTotal Noncurrent Assets

Total Assets

Current LiabilitiesAccounts PaYable

Accrued Payroll

Compensated Absences

Net Pension Obligation

Net Post-Employment Benefit Obligation

Unearned/Deferred Revenues

Total Liabilities

Invested in Capital Assets

Unrestricted

ASSETS

LIABILITIES

NET ASSETS

s 3,712,522

118,088

193,902

47 842

3s4

290,750

9,070,685

3l)2,704,904

6,777,258

142,970

119,663

337,912

49,600

18,813

2,633

671,591

2,704,904

763

6,1 05.667Total Net Assets

See accompanying Notes to the Financial Statements and Independent Auditor's Report.

MD&.^2

DUPAGE PUBLIC SAFETY COIVIMUNICATIONSMANAGEMENT'S DISCUSSION AND ANALYSIS

Statement of Activities - All FundsYear Ended April 30,2011

20tlBudget

2011

Actual DifferenceOperating Revenues

Charges for Services

Participation Fees

Alarm Fees

Miscellaneous

ETSB Contract Fees

Grants

Tower Leases

Consolidation Fees

RebillsMiscellaneous

Reserves

Total Operating Revenues

Operating Expenses

Salaries and Wages

MIS ConsultingInsurance - BenefitsInsurance - Property/WcPhones

Facil itiesÀ4aintÆquip-GH

General Expenses

Facil ities/MaintÆquip-Towers

Misc. Capital Projects

Console FumitureRadio Network EquipmentAgency RebillDepreciation

Total Operating Expenses

Operating Income (Loss)

Nonoperating Revenues (Expenses)

Interest Income

Transfers InTransfers Out

Change in Net Assets

Non-GAAP ActivityAssigned Funds - Revenues

Assigned Funds - Expenses

Capital Assets

Radio Network Equipment (Fire Noth)Parking Lot Project-FYEl0 CIP

Radio Network Equipment - FYEI2 PPE

Misc. Capitalized Purchases

g 7,427,708

664,000

99,40090,600

160,648

7,300

1,500

675,000

7,433,054

687,794

5,34623,794

(89,000)

4,764

39,207

74,522

6,130(675,000)

99,400

1,600

165,412

39,207

81,822

7,630

9,126,156 8,515,919 29,140

6,469,700

387,000

624,947

100,000

350,000

244,700

323,360

139,700

136,050

330,000

250,000

1,000

6,1 13,303

387,405

557,644

88,967

376,239

197,898

260,468

53,521

73,519

7,407

42,871

45,936

233,229

355,397(405)

67,303

I 1,033

(26,239)

46,802

62,89286,179

62,531

322,593

207,129

(44,936)

(233,229)

9,355,457 8,438,407 917,050

(229,301) 77,512 ( 151,789)

17,000

733,000

(733,000)

13,173

733,000(733,000)

3,827

17,000 13,773 3,827

(212,301) 90,685 (147,962)

763,350

(455,425)

(10,000)

(83,300)

541,350

(218,065)

(67,482)(l r 1,070)

(193,902)(74,488)

(222,000)

(237,360)

67,482101,070

193,902(8,812)

214,625 (123,657) (105,718)

Excess Revenues Over (Under) Expenses

MD&A 3

2,324 (32,972) (253,680)


Financial Highlights

. DU-COMM's Assets exceed its Liabilities by $6,105,667 as of April 30, 2011.

. CapitalAssets of $2,704,904

. Unrestricted Net Assets $3,400,763

. As a result of current year operations, Net Assets increased by $90,685 from theprevious year.

. Total Liabilities of $671,591 includes accounts payable and accruals for payroll andcompensated absences.

Revenue

DU-COMM's Operations Fund (001) is funded primarily by member agency shares, assessedannually for dispatch services. The Board of Directors agreed upon the current fundingformula with 75% of the budget shared by the police agencies and the remaining 25% splitbetween the fire agencies. The police agencies are assessed a "per otficer" fee based on thetotal number of sworn officers. The fire agencies use the "assessed value" of their districtsper the county tax assessor's office.

The agency assessments are combined with an additional $2,400 from fees collected forboard-up company registrations, $300 from subpoena requests, $39,207 of consolidationfees (3% admin fee) from four new agencies due to join DU-COMM at the beginning ofFYE12, $4,000 from the Hanover Township EMA's annualfee, $99,400 from the ETSB forthe radio project manager agreement, $1,600 from an IPRF annual safety grant, $11,327 in

interest earned, and $930 miscellaneous revenues to fund our Operations Fund.

The Operations Fund also benefits from $178,000 of revenue from the Alarm Fund (009) tooffset the cost of the three part-time Alarm Operators, and $105,000 of revenue from theTower Fund (006) to offset the cost of Technician salaries.

The Capital Fund (004) is primarily funded by a transfer from the Alarm Fund which hasrevenue of $687,794 generated by monitoring the municipal alarm boards of memberagencies. The Tower Fund is funded by $t 65,412 in fees generates by leasing tower spaceto private companies and outside governmental units.

Expenses

The Operations Fund has the largest portion of expenses totaling $7,997,050, accounting for94.8% of all expenses. Our largest expenses are: payroll, unemployment insurance, taxes,and benefits totaling $6,113,303, representingT6.40/o of the expenses in the OperationsFund.

MD&A 4


Variations between Original and Final Budgets

Actual amounts for revenue and expenses were within the budget approved by the DU-

COMM Board for the fiscal year ending April 30,2011'

Gapital Assets

DU-COMM expended $245,524 for capital assets in fiscal 2011. lnvestment in capital assets

decreased by the depreciation expense o18233,229.

Economic Conditions

Due to the short term economic conditions, DU-COMM acted responsibly in trying to maintain

or reduce expenses in as many areas as possible. DU-COMM realized its member agencies

had been significantly impacted by the economy, DU-COMM's largest portion of revenue is

generated by member agency shares, as determined by operational needs. Outside of the

Óperations Budget the current economic conditions have resulted in reduced revenue due to

an increase in non-payment of municipal alarm monitoring fees'

Contacting DuPage Public Safety Gomm un ications Board's Ad m i n istration

The financial report is designed to provide a general overview of DU-COMM's finances,compliance with finance related laws and regulations, and demonstrate DU-COMM'scommitment to public accountability. Question about this report, or requests for additionalinformation should be sent to:

Executive DirectorDU-COMM600 Wall StreetGlendale Heights lL 60139

MD&A 5

BASIC FINAI\CIAL STATEMENTS

DIIPAGE PUBLIC SAFETY COMMT]NICATIONS


April30,2011

Current Assets


Accounts Receivable

Prepaid EquipmentPrepaid Insurance

Total Current Assets

Noncurrent Assets

Capital Assets

Nondepreciable Capital Assets

Depreciable Capital Assets

DepreciationTotal Noncurrent Assets

Total Assets

Current LiabilitiesAccounts Payable

Accrued PayrollCompensated Absences

Net Pension ObligationNet Post-Employment Benefit ObligationUnearned/Deferred Revenues

Total Liabilities

Invested in Capital Assets

Unrestricted

Total Net Assets

ASSETS

LIABILITIES

NET ASSETS

s 3,712,5221 18,088

193,90247,842

4,072,354

290,750

9,070,685(5,656,53 1)

2,704,904

6,777,258

r42,970119,663

337,91249,600

1 8,8 13

2,633671,591

2,704,904J 763

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

J

6.105.667

DI]PAGE PUBLIC SAFETY COMMUNICATIONS

Statement of Revenues, Expenses and Changes in Net Assets

Year Ended April30, 2011

Operations Capital Alarm Tower Total

Operating Revenues

Charges for Services

Participation Fees

Alarm Fees

MiscellaneousTotal Operating Revenues

Operating Expenses

Salaries and Wages

FICA and IMRFTelecommunicationsInformation Services

Insurance

Professional Services

Office Management

Uniforms and IncentivesTraining and TestingMaintenance Services

ContingencyFurniture and AppliancesEquipmentFacility Maintenance

Tower Rent

Routine Maintenance

utilitiesInsurance

Agency RebillTower Repairs

DepreciationTotal Operating Expenses

Operating Income (Loss)

Change in Net Assets

Net Assets - Beginning

Net Assots - Ending

$ 7,433,054687,794

7,433,054687,794

395,071229,659 165,412

7 713 687,794 165,412 15.919

5,177,r73936,r30403,093

32,679

646,611

444,326

19,742

20,499

40,110

213,86616,885

30,810

5,177,173936,130

403,093

32,679

646,6tr444,326

19,742

20,499

40,1 10

244,676

16,885

30, I 05

90,980

2,7123,7063,956

21,60412,369

45,936

1 1,886

233,229

30,105

90,9802,712

45,936

3,7063,956

2r,60412,369

1 1,886

233,229

7.997,0s0 3s7.026 30.810 53,521 8.438.407

(334,33 7\ ß57,026) 656.984 111,891 77,512

Nonoperating Revenues (Expenses)

Interest Income

Transfers InTransfers Out

17,327

283,000

1,846

450,000

13,173

733,000(733,000)(628,000) (105,000)

294,327 45r,846 (628.000) (105,000) 13.173

(40 10) 94.820 28-984 6.891 90,685

014,9826,


4

6,r05,667

DUPAGE PUBLIC SAF'ETY COMMT]NICATIONS

Statement of Cash FlowsYear Ended April 30, 2011

Cash Flows from Operating ActivitiesReceipts from Customers and Users

Payment to Employees

Payment to Suppliers

Cash Flows from Capital and Related Financing ActivitiesPurchase of Capital Assets

Cash Flows from Investing ActivitiesInterest Received

Net Change in Cash and Cash Equivalents

Cash and Cash EquivalentsBeginning - May 1,2010

Ending - April30,20Il

Reconciliation of Operating Income to Net Cash Provided (Used)

by Operating ActivitiesOperating IncomeAdjustments to Reconcile Operating Income to

Net Cash Provided by Operating Activities:Depreciation Expense

(Increase) Decrease in Current Assets

Increase (Decrease) in Current Liabilities

Net Cash Provided by Operating Activities


5

$ 8,350,942(5,177,t73)(3,025,063)

748,706

(245,524)

l3 t73

(83,645)

),796.t67

3.7t2,522

77,512

233,229(t64,977)

2,942

t48.706

DUPAGE PUBLIC SAF'ETY COMMUNICATIONS

Notes to the Financial StatementsApril30,2011

NOTE 1 - SUMMARY OF'SIGNIFICANT ACCOUNTING POLICIES

The financial statements of DuPage Public Safety Communications, Illinois (DU-COMM) have beenprepared in conformity with generally accepted accounting principles (GAAP) as applied to governmentunits. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body forestablishing govemmental accounting and financial reporting principles. The more significant of theDispatch Center's accounting policies are described below.

The govemment-wide financial statements are prepared in accordance with generally acceptedaccounting principles (GAAP). The Governmental Accounting Standards Board (GASB) is responsiblefor establishing GAAP for state and local governments through its pronouncements (Statements andInterpretations). Governments are also required to follow the pronouncements of the FinancialAccounting Standards Board (FASB) issued through November 30, 1989 (when applicable) that do notconflict with or contradict GASB Pronouncements. Although DU-COMM has the option to apply FASBpronouncements issued after that date to its business-type activities and enterprise funds, DU-COMMhas chosen not to do so. The more signif,rcant of DU-COMM'S accounting pofiõies established in GAAPand used by DU-COMM are described below.

REPORTING ENTITY

DU-COMM is a cooperative venture which provides equipment, services and other necessary items tooperate and maintain a joint public safety communications system for the mutual benefit of participatingmembers. As of April 30, 201I, 13 municipal police departments and 17 fire protection agencies (ofwhich 7 are municipal fire departments and 10 are fire protection districts) located wholly or partiallywithin DuPage County, Illinois are members of DU-COMM.

BASIS OF PRESENTATION - BASIC FINANCIAL STATEMENTS

In the Statement of Net Assets, DU-COMM's activities are reported on a full accrual, economicresource basis, which recognizes all long-term assets and receivables as well as long-term debt andobligations.

DU-COMM's net assets are reported in two parts: invested in capital assets and unrestricted net assets.

DU-COMM utilizes proprietary fund type accounting. Proprietary funds are used to account foractivities similar to those found in the private sector, where the determination of net income is necessaryor useful to sound financial administration. Goods or services from such activities are provided tomembers and are accounted for as enterprise funds.

6

DUPAGE PUBLIC SAFETY COMMUNICATIONS


NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued

MEASUREMENT FOCUS AND BASIS OF ACCOUNTING

Measurement Focus

All proprietary funds utilize an "economic resources" measurement focus. The accounting objectives ofthis measurement focus are the determination of operating income, changes in net assets, financialposition, and cash flows. All assets and liabilities (whether current or noncunent) associated with theiractivities are reported. Proprietary fund equity is classified as net assets.

Basis of Accounting

DU-COMM's basic financial statements are presented using the accrual basis of accounting. Under theaccrual basis of accounting, revenues are recognized when earned and expenses are recorded when theliability is incurred or economic asset used.

Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operatingrevenues and expenses generally result from providing services and producing and delivering goods inconnection with a proprietary fund's principal ongoing operations. The principal operating revenues ofDU-COMM are charges to members for services. Operating expenses for DU-COMM include the costof services, administrative expenses, and depreciation on capital assets. All revenues and expenses notmeeting this definition are reported as nonoperating revenues and expenses.

ASSETS, LIABILITIES, AND NET ASSETS OR EQUITY


For the purpose of the Statement of Net Assets, the cash and cash equivalents are considered to be cash

on hand, demand deposits and short-term investments with original maturities of three months or less

from the date of purchase. Investments are reported at fair value. Short-term investments are reported atcost, which approximates fair value. Securities traded on national exchanges are valued at the last reportedsales price. Investments that do not have any established market, if any, are reported at estimated fairvalue.

Prepaids

Prepaids are valued at cost, which approximates market. The cost of governmental fund-type prepaidsare recorded as expenditures when consumed rather than when purchased. Certain payments to vendorsreflect costs applicable to future accounting periods and are recorded as prepaids in both thegovernment-wide and fund financial statements.

7



NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued

ASSETS, LIABILITIES, AND NET ASSETS OR EQUITY - Continued

Capital Assets

All purchased capital assets are valued at cost where historical records are available and at an estimated

historical cost where no historical records exist. Donated capital assets are valued at their estimated fairmarket value on the date received. The costs of normal maintenance and repairs that do not add to thevalue of the asset or materially extend asset lives are not capitalized. Improvements are capitalized and

depreciated over the remaining useful lived of the related capital assets, as applicable. Depreciation ofequipment is computed using the straight-line method.

Compensated Absences

Vested or accumulated vacation leave of proprietary funds is recorded as an expense and liability ofthose funds as the benefits accrue to employees. In accordance with the provisions of GASB Statement

No. 16, Accounting for Compensated Absences, no liability is recorded for non-vesting accumulatingrights to receive sick pay benefits.

Fund Equity

In the basic financial statements, equity is classified as net assets and displayed in two components:

Invested in capital assets- Consists of capital assets including restrictedcapital assets, net of accumulated depreciation.

Unrestricted net assets - Al1 other net assets that do not meet the definitionof "restricted" or "invested in capital assets."

NOTE 2 - STE\üARDSHIP, COMPLIANCE AND ACCOUNTABILITY

BUDGETARY INFORMATION

Budgets are adopted on a basis consistent with generally accepted accounting principles. TheIntergovernmental Cooperation Act does not establish budgetary requirements. However, the Bylaws forDU-COMM require that an annual budget be adopted and approved by the Board.

The Executive Committee prepares the budget. The budget is prepared by category and includesinformation on the past year, current year estimates, and requested assessments for the next fiscal year.

The proposed budget is presented to the Board of Directors for approval and adoption. The budget forDU-COMM may only be adopted or amended by its Board of Directors. Expenses may not legallyexceed budgeted amounts.

8

DUPAGE PUBLIC SAFETY COMMTINICATIONS


NOTE 3- DETAIL NOTES ON THE BASIC F'INANCIAL STATEMENTS

DEPOSITS AND INVESTMENTS

Permitted Deposits and Investments - Statutes authorize DU-COMM to make deposits/invest incommercial banks, savings and loan institutions, obligations of the U.S. Treasury and U.S. Agencies,obligations of States and their political subdivisions, credit union shares, repurchase agreements,commercial paper rated within the three highest classifications by at least two standard rating services,and the Illinois Funds investment pool.

Illinois Funds is an investment pool management by the Illinois Public Treasurer's Offrce, which allowsgovernments within the state to pool their funds for investment purposes. Although not registered withthe SEC, Illinois Funds does operate in a manner consistent with Rule 2a7 of the investment companyAct of 1940. Investments in Illinois Funds are valued at the share price, the price for which theinvestment could be sold.

Credit Risk, Custodial Credit Risk and Concentration Risk

Deposits. At year-end, the carrying amount of DU-COMM's deposits totaled $2,361,288 and the bankbalances totaled $2,576,613. DU-COMM also has $1,351 ,234 invested in the Illinois Funds at year end,

which has an average maturity of less than one year.

Interest Rate Risk.Interest rate risk is the risk that changes in interest rates will adversely affect the fairvalue of an investment. DU-COMM's investment policy states that interest rate risk may be mitigated bystructuring the investment portfolio so that securities mature to meet cash requirements for ongoingoperations and investing operating funds primarily in shorter-term securities, money market mutualfunds, or similar investment pools. To the extent possible, DU-COMM will attempt to match itsinvestments with anticipated cash flow requirements. Unless matched to a specific cash flow, DU-COMM will not directly invest in securities maturing more than three years from the date of purchase.

Reserve funds may be invested in securities exceeding three years if the maturities of such investmentsare made to coincide as nearly as practicable with the expected use of the funds. Any investment

,purchased with a maturity longer than four years must be supported with written documentationexplaining the reason for the purchase and must be specifically approved by the Board of Directors.

9



NOTE 3- DETAIL NOTES ON THE BASIC FINANCIAL STATEMENTS

DEPOSITS AND INVESTMENTS - Continued

Credit Risk, Custodial Credit Risk and Concentration Risk- Continued

Credit ¡R¡sfr. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill itsobligations. Besides investing in security instruments authorized under State Statute, DU-COMM'sinvestment policy states credit risk may be mitigated by pre-qualifying the financial institutions,broker/dealers, intermediaries, and advisers with which DU-COMM will due business with, anddiversifying the investment portfolio so that the impact of potential losses from any one type of securityor from any one individual issuer will be minimized. DU-COMM's investment in the Illinois Funds israted AAAm by Standard &, Poor's.

Custodial Credit Risk - Deposits. In the case of deposits, this is the risk that in the event of bank failure,DU-COMM's deposits may not be returned to it. DU-COM's investment policy requires that funds ondeposit in excess of FDIC limits must be secured by some form of collateral, witnessed by a writtenagreement. In order to anticipate market changes and provide a level of security for all funds, theamount of collateral provided will be at a minimum of I02% of the fair market value of principal andaccrued interest. Direct investments guaranteed by the United States or an agency of the United Statesgovernment do not require collateral. At April 30,2011, the entire bank balance was covered by federaldepository or equivalent insurance. Illinois Funds is not subject to custodial credit risk.

Concentration of Credit Risfr. This is the risk of loss attributed to the magnitude of DU-COMM'sinvestment in a single issuer. DU-COMM's investment policy states that investments shall be diversifiedby limiting investments to avoid over-concentration in securities from a specific issuer or business sector(excluding U.S. Treasuries and Agency securities), investing in securities with varying maturities, andcontinuously investing a portion of the portfolio in readily available funds such as local governmentinvestment pools, money market funds or ovemight repurchase agreements to ensure that the appropriateliquidity is maintained in order to meet ongoing obligations. At year-end, DU-COMM has more that 5

percent of the total cash and investment portfolio invested in the Illinois Funds. Illinois Funds isprimarily invested in U.S. Government securities.

r0


Notes to the X'inancial StatementsApril30,2011

NOTE 3- DETAIL NOTES ON THE BASIC FINANCIAL STATEMENTS - Continued

CAPITAL ASSETS

The following is a summary of capital assets as of the date of this report:

BeginningBalances Increases Decreases

EndingBalances

Nondepreciable Capital Assets

Land

Construction in Progress

Depreciable Capital Assets

Equipment

Computer ReplacementSoftwareHanover Park MicrowaveFire Desk ExpansionAutosBuildingCloverdale TowerVilla Park TowerMicrowaveParking LotInfrastructure Replacement

Less Accumulated DepreciationEquipment and OtherAutosBuildingCloverdale TowerVilla Park Tower

Depreciable Capital Assets, Net

$ 290,750107,900

290,750107,900

398,650 107,900 290,750

4,597,79359,877

29,3I067,40945,567

96,8311,942,728

561,000221,003

59,667

37.076

100,559

41,381

2r1,484

4,698,352

59,877

28,310

67,40945,567

96,8311,942,728

561,000221,003101,048

211,48437,076

7.717.26r 353.424 8,070,685

4,322,09142,321

539,795438,061

81,034

123,35613,001

47,391

34,747

14,734

4,445,44755,322

587,186

472,80895,768

5,423,302 233,229 5,656,531

2,293,959 120,195 2,4r4,154

2.692.609Capital Assets, Net

11

120.195 107.900 2.704.904


Notes to the F'inancial StatementsApril30,2011

NOTE 3_ DETAIL NOTES ON THE BASIC F.INANCIAL STATEMENTS _ CONtiNUEd

CAPITAL ASSETS - Continued

The following estimated useful lives are used to compute depreciation:

AutosBuildingsCommunication EquipmentComputer EquipmentOffice Fumiture and EquipmentTowers

LONG.TERM DEBT

Long-Term Liability Activity

Changes in long-term liabilities during the fiscal year were as follows:

5 Years50 Years

5 - 10 Years3 Years

6 - l0 Yearsl5 Years

Type ofDebtBeginningBalances

EndingBalances

AmountsDue withinOne YearAdditions Deductions

Governmental ActivitiesNet Pension ObligationNet Post-Employment

Benefit Obligation

8 12,023 538,896 501,319 49,600

9.264 lI,4r2 1.863 18.813

2r.287 550.308 5 -182 68.413

NOTE 4 - OTHER INFORMATION

RISK MANAGEMENT

DU-COMM is exposed to various risks of loss related to torts; theft of damage to and destruction ofassets; enors and omissions; natural disasters; and injuries to DU-COMM's employees. These risks are

provided for through a commercial insurance policy purchased from independent third parties.

12



NOTE 4 - OTHER INFORMATION - Continued

EMPLOYEE RETIREMENT SYSTEM _ DEFINED BENEX'IT PENSION PLAN

Plan Descriptions, Provisions and Funding Policies

DU-COMM contributes to the Illinois Municipal Retirement Fund (IMRF), a defined benefit agentmultiple-employer public employee retirement system that acts as a common investment andadministrative agent for local governments and school districts in Illinois. The Illinois Pension Codeestablishes the benefit provisions of the plan; those provisions can only be amended by the IllinoisGeneral Assembly. IMRF provides retirement, disability, annual cost-of-living adjustments and deathbenefits to plan members and beneficiaries. IMRF issues a publicly available financial report thatincludes financial statements and required supplementary information for the plan as a whole, but not byindividual employer. That report may be obtained online at www.in-rrf.org. The benefits, benefit levels,employee contributions, and employer contributions are govemed by Illinois Compiled Statutes and canonly be amended by the Illinois General Assembly.

All employees hired in positions that meet or exceed the prescribed annual hourly standard must beenrolled in IMRF as participating members. Participating members hired before January 1,2011 whoretire at or after age 60 with 8 years of service are entitled to an annual retirement benefit, payablemonthly for life, in an amount equal to 1-213 percent of their final rate (average of the highest 48consecutive months'earnings during the last 10 years) of earnings, for each year of credited service up to15 years, and 2 percent for each year thereafter. For participating members hired on or after January l,2011 who retire at or after age 67 with 10 years of service are entitled to an annual retirement benefit,payable monthly for life in an amount equal to l-213 percent of their final rate (average of the highest 96consecutive months' earnings during the last 10 years) of earnings, for each year of credited service,with a maximum salary cap of $106,800 at January 1,2011. The maximum salary cap increases eachyear thereafter. The monthly pension of a member hired on or after January 1,2011, shall be increasedannually, following the later of the first anniversary date of retirement or the month following theattainment of age 62,by the lesser of 3%o or lz of the consumer price index. Employees with at least l0years of credited service may retire at or after age 62 and receive a reduced benefit. IMRF also providesdeath and disability benefits. These benefit provisions and all other requirements are established by statestatute. Employees participating in the plan are required to contribute 4.50 percent of their annualcovered salary to IMRF. The employees' contribution rate is established by state statute. DU-COMM isrequired to contribute the remaining amount necessary to fund the IMRF plan as specified by statute.The employer contribution rate for calendar year 2010 used by the employer was 9.55 percent of annualcovered payroll. The employer annual required contribution rate for calendar year 2010 was 10.22percent.

13




EMPLOYEE RETIREMENT SYSTEM _ DEFINED BENEFIT PENSION PLAN _ CONtiNUCd

Funding Policy and Annual Pension Cost

For April 30,2011, DU-COMM's actual contributions for pension cost were $501,319. DU-COMM'srequired contribution was $538,638. The required contribution was determined as part of the December

31, 2008 actuarial valuation using the entry age actuarial cost method. The actuarial assumptions

included (a) 7.5% investment rate of return (net of administrative expenses), (b) projected salary

increases of 4.00% ayear, attributable to inflation, (c) additional projected salary increases ranging from0.4Yo to I0.0% per year, depending on age and service, attributable to seniority/merit and (d) post-

retirement benefit increases of 3%o annually. The actuarial value of IMRF assets was determined using

techniques that smooth the effects of short-term volatility in the market value of investments over a five-year period with a 20%o conidor. IMRF's unfunded actuarial accrued liability at December 31,2008 is

being amortized as a level percentage of projected payroll on an open 10 year basis.

Trend Information

Employer annual pension cost (APC), actual contributions and the net pension obligation (NPO) are as

follows. The NPO is the cumulative difference between the APC and the contributions actually made.

FiscalYear

AnnualPension

Cost

Percentage

ofAPCContributed

NetPension

Obligation

2009

2010

20tt

$ 41 1,951

409,521

538,896

100.00 %

100.00

93.00

$ None

None

49,600

t4



NOTE 4 - OTHER INF'ORMATION - Continued

EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLAN _ CONtiNUEd

Annual Pension Cost and Net Pension Obligation

The pension liability as determined in accordance with GASB StatementNo. 27, "Accounting forpensìons by State and Local Govemmental Employers." The pension obligation for Illinois Municipal

Retirement is as follows:

IllinoisMunicipalRetirement

Annual Required Conhibution $ 538,638

Interest on the NPO

Adjustmentto the ARC

Annual Pension Cost

Actual Contribution

Increase in the NPO

NPO Beginning of Year

NPO End ofYear

902

(644)

538,896

501 19

37,577

t2,023

49.600

15


Notes to the Financial Statements.dpril30,2011


EMPLOYEE RETIRTMENT SYSTEM - DEFINED BEIIEFIT PENSION PLAN _ CONtiNUEd

Funded Status and Funding Progress

DU-COMM's funded status for the current year and related information for the plan is as follows:

IllinoisMunicipalRetirement

Actuarial Valuation Date t2/31/10

Percent Funded 83.81%

Actuarial Accrued Liabilityfor Benefits $8,990,245

Actuarial Value of Assets 97,534,826

Over (Under) Funded ActuarialAccrued Liability (UAAL) ($1,455,419)

Covered Payroll (Annual Payrollof Active Employees Covered

by the Plan) $5,1 16,33 I

Ratio of UAAL to CoveredPayroll 28.45%

The schedule of funding progress, presented as Required Supplementary Information (RSI) followingthe notes to the financial statements, presents multiyear trend information about whether the actuarial

value of plan assets are increasing or decreasing over time relative to the actuarial accrued liability forbenefits.

T6




OTHER POST.EMPLOYMENT BENEFITS

Plan Descriptions, Provisions, and Funding Policies

In addition to providing the pension benefits described, DU-COMM provides post-employment healthcare insurance benefits (OPEB) for its eligible retired employees through a single employer definedbenefit plan. The benefits, benefit levels, employee contributions and employer contributions aregoverned by DU-COMM and can be amended by DU-COMM through its personnel manual and unioncontracts. The plan is not accounted for as a trust fund, as an irrevocable trust has not been established toaccount for the plan. The plan does not issue a separate report.

DU-COMM provides post-employment health care benefits to its retirees. To be eligible for benefits, anemployee must qualify for retirement under one of DU-COMM's retirement plans. Elected officials are

eligible for benefits if they qualify for retirement through the Illinois Municipal Retirement Fund.

All health care benefits are provided through DU-COMM's health insurance plan. The benefit levels are

the same as those afforded to active employees. Benefits include general inpatient and outpatientmedical services; mental, nervous, and substance abuse care; vision care; dental care; and prescriptions.Upon a retiree reaching 65 years of age, Medicare becomes the primary insurer and DU-COMM's planbecomes secondary.

All retirees contribute I00% of the actuarially determined premium to the plan. For the fiscal yearending April 30, 2011, retirees contributed $5,767. Active employees do not contribute to the plan untilretirement.

At April 30,2011, membership consisted of:

Retirees and Beneficiaries Currently ReceivingBenefits and Terminated Employees Entitledto Benefits but not yet Receiving Them

Active Employees

Total

Participating Employers

DU-COMM does not currently have a funding policy.

1

69

70

l7


Notes to the Financial StatementsAprÍl30,2011

NOTE 4 - OTHER INFORIYTA*TION - Continued

OTHER POST-EMPLOYMENT BENEFITS - Continued

Annual OPEB Costs and Net OPEB Obligation

The net OPEB obligation (NOPEBO) as of April30,20ll, was calculated as follows:

OPEB

Increase in the NPO 9,549

NPO - Beginning of Year 9.264

NPO - End of Year 18.813

Trend Information

DU-COMM's annual OPEB cost, actual contributions, the percentage of annual OPEB cost contributed

and the net OPEB obligation are as follows:

Annual Required ContributionInterest on the NPOAdjustment to the ARC

Annual OPEB Cost

Actual Contribution

$ 11,181

463

(232)

II,4I21,863

Percentage

ofOPEBCost Contributed

FiscalYear

AnnualOPEBCost

ActualContributions

NetOPEB

Oblieation

2009

2010

$ N/A

ll,l27

$ N/A

1,863

1,863

N/A % $ N/A

16.70 9,264

20ll ll,4I2

18

t6.32 18,813





Funded Status and X'unding Progress

The funded status of the plan as of April 30, 2010, the date of the latest actuarial valuation, was as

follows:

Actuarial Accrued Liability (AAL) $ 95,805

Actuarial Value of Plan Assets

Unfunded Actuarial Accrued Liability (UAAL) 95,805

Funded Ratio (actuarial value of plan assets/AAl)

Covered Payroll (active plan members) 4,719,570

UAAL as a percentage of covered payroll 2.03%

Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts andassumptions about the probability of occurrence of events far into the future. Examples includeassumptions about future employment, mortality, and the healthcare cost contributions of the employerare subject to continual revision as actual results are compared with past expectations and new estimatesare made about the future. The schedule of funding progress, presented as required supplementaryinformation following the notes to the financial statements, presents multiyear trend information thatshows whether the actuarial value of plan assets is increasing or decreasing over time relative to theactvaúal accrued liabilities for benefits.

Actuarial Methods and Assumptions

Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as

understood by the employer and plan members) and include the types of benefits provided at the time ofeach valuation and the historical pattern of sharing of benefit costs between the employer and planmembers to that point. The actuarial methods and assumptions used include techniques that are designedto reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistentwith the long-term perspective of the calculations.

I9

DUPAGE PUBLIC SAX'ETY COMMT]NICATIONS




Actuarial Methods and Assumptions - Continued

In the April 30, 2010 actuarial valuation the entry age actuarial cost method was used. The actuarial

assumptions included a5.0o/o investment rate of return (net of administrative expenses) and an annual

healthcare cost trend rate of 8.0%. Both rates include a3.\Yo inflation assumption. The actuarial value ofassets was not determined as DU-COMM has not advance funded its obligation. The plan's unfunded

actuarial accrued liabilþ is being amortized as a level percentage of projected payroll on an open basis.

The remaining amortization period at April 30,2011, was 30 years.

20

REQUIRED SUPPLEMENTARY INFORMATION

DT]PAGE PUBLIC SAFETY COMMTINICATIONS

Illinois Municipal Retirement Fund

Required Supplementary InformationSchedule of Funding Progress and Employer ContributionsApril30,2011

Funding Progress

ActuarialValuation

Date

Dec. 31

(t)Actuarial

Valueof Plan

Assets

(2)

ActuarialAccruedLiability(AAL)

- Entry Age

(3)

Funded

Ratio(l) + (2)

(4)

Unfunded(Overfunded)

ActuarialAccruedLiability(2) - (1)

(s)AnnualCovered

Payroll

(6)

Unfunded(Overfunded)

ActuarialAccruedLiability

asaPercentage

ofCoveredPayroll

(4) + (5)

2005

20062007

2008

2009

2010

$ 4,132,383

4,614,3465,604,810

6,136,180

6,599,0927,534,826

$ 4,638,141

4,857,4835,714,2806,835,807

7,814,7128,990,245

EmployerContributions

89.r0%94.99%98.08%

89.77%

84.44%83.81%

$ 505,758243,137

109,470

699,627

1,275,620

1,455,419

AnnualRequired

Contribution

$ 4,161,971

3,916,272

3,984,4354,477,7314,717,9885,116,331

12.15%

6.21%2.75%ts.62%2s.77%28.4s%

PercentContributed

Employer Contributions

FiscalYear

20062007

2008

2009

201020ll

$ 399,965

39r,621433,1 08

4lt,g5l409,521

501,319

$ 399,965

391,627433,1 08

471,95r409,521

538,638

100.00%

100.00%

100.00%100.00%

100.00%

93.07%

2l

DI]PAGE PUBLIC SAÌ'ETY COMMI]NICATIONS

Other Post-Employment Benefit Plan

Required Supplementary InformationSchedule of Funding Progress and Employer ContributionsApril30,2011

X'unding Progress

ActuarialValuation

Date

Apr.30

(1)Actuarial

Valueof Plan

Assets

(2)ActuarialAccruedLiability(AAL)

- Entry Age

(3)

Funded

Ratio(1) + (2)

(4)Unfunded

(Overfunded)

ActuarialAccruedLiability(2) - (l)

(s)AnnualCovered

Payroll

(6)Unfunded

(Overfunded)ActuarialAccruedLiability

asaPercentage

of Covered

Payroll(4) + (5)

20062007

2008

2009

20r020tl

N/AN/AN/AN/A

N/A

N/AN/AN/AN/A95,805

N/A

N/AN/AN/AN/A

0.00%N/A

NiAN/AN/AN/A95,805

N/A

N/AN/AN/AN/A

2.03%N/A

$$$$ N/AN/AN/AN/A

4,719,570N/A

Employer Contributions

FiscalYear

EmployerContributions

AnnualRequired

ContributionPercent

Contributed

20062007

2008

2009

201020tl

N/AN/AN/AN/A

1,963

1,863

N/AN/AN/AN/All,l271 1,181

N/AN/AN/AN/A

16.74%

16.66%

$$

DU-COMM implemented GASB Statement No. 45 for the fiscal year ended April 30, 2010, Information forother years is not available. DU-COMM is required to have an actuarial valuation performed triennially.

22

SUPPLEMENTAL SCHEDULES


Schedule of Detailed Expenses - Operations - Budget and ActualYear Ended April 30, 2011

BudgetOriginaland Final Actual

Operating Expenses

Salaries and Wages $s 5.r77.173

FICA and IMRF

TelecommunicationsPhone LinesWireless Service

Pagers

LEADSTactical DispatchWeather Radar

Information Services

Professional Network Services

Internet Access

Software, Maintenance and Insurance

Wireless Data Services

Domain Registration and SSL Certificates

SoftwareMiscellaneous

lnsuranceGeneral Casuaþ, Auto and UmbrellaWorkers Compensation

MedicalDentalLifeVisionEmployee Assistance Program

Flexible Spending AccountsPost-Employment Benefit

50,232

39,735480,701

47,2472,877

13,160

1,9252,1859.549

350,0007,6005,100

10,800

5,0002,500

93 130

376,2397,3144,724

10,5292,4871,800

700

3 81.000 403.093

500

6,00011,560

8,400850

2,5005,000

5,71413,133

7,349831

1,0344,618

34,810 32.679

55,00045,000

547,20053,962

6,60012,6502,0352,500

23

724,947 646,67r


Schedule of Detailed Expenses - Operations - Budget and Actual - ContinuedYear Ended April 30, 2011


Operating Expenses - ContinuedProfessional Services

Accounting SuppliesAccounting Professional Fees

AuditBank Fees

Payroll Processing Fees

MIS Consulting FirmLegal ServicesPersonnel CounselRandom Drug TestingFrequency Coordination Fees

Frequency Consultant Fees

Office ManagementOffice SuppliesCopy PaperTonerForms and SuppliesCopier Lease and MaintenanceDocument ManagementPrintingPostage

ShippingMiscellaneous

Uniforms and IncentivesTelecommunicator AwardsCoffeeDaily NewspaperEmployee RecognitionTuition ReimbursementUniforms - TechUniforms - AdminUniforms - TelecommunicatorAgency Events

$ 7505,000

11,300

500

4,500

387,00010,000

40,000

7s05,0002,500

4361,330

11,200

37

5,524387,405

8,13622,356

t473,9223,833

467.300 444,326

6,5003,2004,5002,5008,000

7502,6003,000

500

1,000

1,922

r,7014,264

804

5,04910s

1,744

1,996

3001,857

32 550

2,0004,500

3002,0006,0001,000

3,000

8,5001,500

19 742

7t52,520

2581,576

3,354468

2,0998,291

1,228

24

28.800 20,499

DI]PAGE PUBLIC SAFETY COMMUNICATIONS

Schedule of Detailed Expenses - Operations - Budget and Actual - ContinuedYear Ended April 30, 2011

BudsetOriginaland Final Actual

Operating Expenses - ContinuedTraining and Testing

Professional AssociationsConferences and MeetingsTrainingTesting and AdvertisingMiscellaneous

Maintenance Services

VehiclesBuilding and GroundsEquipment and Maintenance

Contingency

Agency Rebill


$ 4,5007,000

30,25010,900

2,250

3,8404,440

16,810

74,876144

54.900 40.1 10

29,000187,100

44,600

23,363

154,937

35.566260,700 213.866

10,000 16.885

1,000 45,936

8.464.707 7.997.050

25

DIIPAGE PUBLIC SAFETY COMMUMCATIONS

Schedule of Detailed Expenses - Capital - Budget and ActualYear Ended April 30, 2011


Operating ExpensesFurniture and Appliances

Office Repairs/Furniture $ 358,200 30,105

EquipmentBatteries - TowerAntenna SparesRadio Network EquipmentMicrowaveMobile and Portable RadiosStation AlertingComputersSoftwareNetwork ServersMIS Miscellaneous Parts and EquipmentPrinter Replacement

Facility MaintenanceBuilding ImprovementExterior Building SecurityParking LotCapital Contingency

Capital Replacement FundsVehicle ReplacementFacility MaintenanceDispatch ChairsSoftwareComputersConsole FurnitureMicrowaveNetwork Servers

PrintersMonitoring & Test EquipmentRadio Network Equipment

Depreciation


2,0002,000

250,00050,00010,00012,000

6,50043,85023,30010,000

1,500

1,03 8

42,8779,6647,500

11,9185,5704,4043,1 893,4291,397

411,150 90,980

2,712

10,000 -

40,000 2,772

10,00050,0003,348

10,0009,275

52,66050,00014,1 85

1,2385;000

249 720455,426

233,229

10,00010,00010,000

26

, 1264J76 357.W

DT]PAGE PUBLIC SAFETY COMMT]NICATIONS

Schedule of Dotailed Expenses - Alarm - Budget and ActualYear Ended April 30,2011

Oporating ExpensesMaintenance Servioes

Maintenance Agreement

Capiøl OutlayEquipment Purohases


Nonoperating Expenses

Transfers Out

DI]PAGE PT]BLIC SAFETY COMMUNICATIONS

Schedule of Detailed Expenses - Tower - Budget and ActualYear Ended April 30, 2011

BudgetOriginaland Final Aotual

Operating ExpensesTower Rent

Hickory RidgeTower Real Estate Taxes

Professional Servioes

Consulting/Engineering

Maintenance Services

Routine MaintenanceLandscaping (Tower)Diesel Fuel (Gnerators)

UtilitiesElmhurstHanover Park

Wheaton

Glendale HeightsVilla Park

InsuranceTower Insurance

Tower RepairsElmhurstHanover ParkWheaton

Glendale HeightsVilla Park


Nonoperating Expenses

Transfers Out

1,000

1,000

1,000

54,000

15

1,027

437

1 0,1 35

272

$ 1,000

6,700794

2,9127 700

14,500

J 706

20,0002,000

1,000

3,956

23,000 3,956

5,0005,0005,000

3,000

3,000

4,7084,805

4,5323,622

3,937

21,000 21.604

15,500 12,369

000

58,000 11.886

139,700 53,52t

105,000 105.000

Total Expenses

28

244.700 ts8,52t

memo - fye11 audit recap fye11 audit with memo.pdfagreement. $687,794 in alarm fees were received...

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