INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY JUNE 30, 2023

TABLE OF CONTENTS

TITLE	PAGE

Independent Auditor’s Report ....................................................................................................................... 1

Prepared by Management:

Management’s Discussion and Analysis ................................................................................................... 5

Basic Financial Statements:

Government-wide Financial Statements:

Statement of Net Position ................................................................................................................ 17

Statement of Activities ...................................................................................................................... 18

Fund Financial Statements:

Balance Sheet
Governmental Funds .................................................................................................................... 21

Reconciliation of Total Governmental Fund Balances to
Net Position of Governmental Activities ....................................................................................... 22

Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds .................................................................................................................... 23

Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds
to the Statement of Activities ........................................................................................................ 24

Statement of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual (Non-GAAP Budgetary Basis)
General Fund................................................................................................................................ 25

Notes to the Basic Financial Statements ............................................................................................. 27

Required Supplementary Information:

Schedule of the District’s Proportionate Share of the
Net Pension Liability - School Employees Retirement System (SERS) of Ohio ........................... 72

Schedule of the District’s Proportionate Share of the
Net Pension Liability - State Teachers Retirement System (STRS) of Ohio ............................... 74

Schedule of the District Pension Contributions
School Employees Retirement System (SERS) of Ohio .............................................................. 76

Schedule of the District Pension Contributions
State Teachers Retirement System (STRS) of Ohio.................................................................... 78

Schedule of the District’s Proportionate Share of the
Net OPEB Liability - School Employees Retirement System (SERS) of Ohio .............................. 80

Schedule of the District’s Proportionate Share of the
Net OPEB Liability/Asset - State Teachers Retirement System (STRS) of Ohio ......................... 82

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY JUNE 30, 2023

TABLE OF CONTENTS (Continued)

TITLE	PAGE

Schedule of District OPEB Contributions
School Employees Retirement System (SERS) of Ohio .............................................................. 84

Schedule of District OPEB Contributions
State Teachers Retirement System (STRS) of Ohio.................................................................... 86

Notes to the Required Supplementary Information ........................................................................... 88

Schedule of Expenditures of Federal Awards ......................................................................................... 93

Notes to the Schedule of Expenditures of Federal Awards..................................................................... 94

Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters
Required by Government Auditing Standards ......................................................................................... 95

Independent Auditor’s Report on Compliance with Requirements Applicable to the Major Federal Program and on Internal Control Over
Compliance Required by the Uniform Guidance ..................................................................................... 97

Schedule of Findings ................................................................................................................................. 101

INDEPENDENT AUDITOR’S REPORT

Indian Hill Exempted Village School District Hamilton County
6855 Drake Road Cincinnati, Ohio 45243

To the Board of Education:

Report on the Audit of the Financial Statements

Opinions

We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund informationof the Indian Hill Exempted Village School District, Hamilton County, Ohio (District), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Indian Hill Exempted Village School District, Hamilton County, Ohio as of June 30, 2023, and the respective changes in financial position and the budgetary comparison for the General Fund for the year then ended in accordance with the accounting principles generally accepted in the United States of America.

Basis for Opinions

We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the District, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Efficient       Effective        Transparent 1

Indian Hill Exempted Village School District Hamilton County
Independent Auditor’s Report Page 2

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we

	exercise professional judgment and maintain professional skepticism throughout the audit.

	 identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

	 obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, no such opinion is expressed.

	 evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

	 conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, and schedules of net pension and other post-employment benefit liabilities and pension and other post-employment benefit contributions be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic 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 basic financial statements, and other knowledge we obtained during our audit of the basic 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.

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Indian Hill Exempted Village School District Hamilton County
Independent Auditor’s Report Page 3

Supplementary information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the District’s basic financial statements. The Schedule of Expenditures of Federal Awards as required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards is presented for purposes of additional analysis and is not a required part of the basic 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 basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. Inour opinion, the Schedule of Expenditures of Federal Awards is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated March 12, 2024, on our consideration of the District’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is solely 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 effectiveness of the District's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District's internal control over financial reporting and compliance.

March 12, 2024

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INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2023 (UNAUDITED)

The discussion and analysis of the Indian Hill Exempted Village School District’s (“the District”) financial performance provides an overall review of the District’s financial activities for the fiscal year ended June 30, 2023. The intent of this discussion and analysis is to look at the District’s financial performance as a whole; readers should also review the basic financial statements and the notes to the basic financial statements to enhance their understanding of the District’s financial performance.

Financial Highlights

Key financial highlights for 2023 are as follows:

•	 In total, net position of governmental activities increased $4,413,546, which represents an 18.99% increase from 2022’s net position.

•	General revenues accounted for $49,435,297 in revenue or 91.01% of all revenues. Program specific revenues in the form of charges for services and sales, grants and contributions accounted for $4,881,704 or 8.99% of total revenues of $54,317,001.

•	 The District had $49,903,455 in expenses related to governmental activities; only $4,881,704 of these expenses was offset by program specific charges for services, grants or contributions. General revenues supporting governmental activities (primarily taxes and unrestricted grants and entitlements) of $49,435,297 were adequate to provide for these programs.

•	 The District’s major governmental funds are the general fund, bond retirement fund and the building fund. The general fund had $42,728,488 in revenues and other financing sources and $43,898,464 in expenditures and other financing uses. During fiscal 2023, the general fund’s fund balance decreased $1,169,976 from a balance of $24,961,790 to $23,791,814.

•	 The bond retirement fund had $5,806,339 in revenues and $5,713,769 in expenditures. During fiscal 2023, the bond retirement fund’s fund balance increased $92,570 from a balance of $6,631,358 to $6,723,928.

•	The building fund had $12,104,080 in revenues and other financing sources and $46,377,988 in expenditures. During fiscal 2023, the building fund’s fund balance decreased $34,273,908 from a balance of $65,097,606 to $30,823,698.

•	At June 30, 2023, the District has $104,080,487 in capital assets, net. This amount is net of accumulated depreciation in the amount of $49,466,550. Fiscal year 2023 depreciation expense was $2,225,929. Total net investment in capital assets was $42,249,026 at June 30, 2023.

•	 At June 30, 2023, the District has $78,080,000, $13,233,534, and $80,205 in general obligation bonds, financed purchase obligations, and leases payable, respectively, outstanding. Of this total, $3,923,937 is due within one year and $87,469,802 is due in greater than one year.

Using These Basic Financial Statements (BFS)

This annual report consists of a series of financial statements and notes to those statements. These statements are organized so the reader can understand the District as a financial whole, an entire operating entity. The statements then proceed to provide an increasingly detailed look at specific financial activities.

The statement of net position and statement of activities provide information about the activities of the whole District, presenting both an aggregate view of the District’s finances and a longer-term view of those finances. Fund financial statements provide the next level of detail. For governmental funds, these statements tell how services were financed in the short-term as well as what remains for future spending. The fund financial statements also look at the District’s most significant funds with all other nonmajor funds presented in total in one column. In the case of the District, the general fund, bond retirement fund, and the building fund are by far the most significant funds, and the only governmental funds reported as major funds.

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INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2023 (UNAUDITED)

Reporting the District as a Whole

Statement of Net Position and the Statement of Activities

While this document contains the large number of funds used by the District to provide programs and activities, the view of the District as a whole looks at all financial transactions and asks the question, “How did we do financially during 2023?” The statement of net position and the statement of activities answer this question. These statements include all assets, deferred outflows, liabilities, deferred inflows, revenues and expenses using the accrual basis of accounting similar to the accounting used by most private-sector companies. This basis of accounting will take into account, all of the current year’s revenues and expenses regardless of when cash is received or paid.

These two statements report the District’s net position and changes in that position. This change in net position is important because it tells the reader that, for the District as a whole, the financial position of the District has improved or diminished. The causes of this change may be the result of many factors, some financial, some not. Non-financial factors include the District’s property taxbase, current property tax laws in Ohiorestricting revenue growth, facility conditions, required educational programs and other factors.

The statement of net position and the statement of activities, include the District’s programs and services, including instruction, support services, operation and maintenance of plant, pupil transportation, extracurricular activities, food service operations and uniform school supplies activities.

The District’s statement of net position and statement of activities can be found on pages 17-19 of this report.

Reporting the District’s Most Significant Funds

Fund Financial Statements

The analysis of the District’s major governmental funds begins on page 13. Fund financial reports provide detailed information about the District’s major fund. The District uses many funds to account for a multitude of financial transactions. However, these fund financial statements focus on the District’ most significant funds. The District’s major governmental funds are the general fund, bond retirement fund, and the building fund. All other governmental funds are considered non-major.

Governmental Funds

Most of the District’s activities are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end available for spending in future periods. These funds are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets than can readily be converted to cash. The governmental fund financial statements provide a detailed short-term view of the District’s general government operations and the basic services it provides. Governmental fund information helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The relationship (or differences) between governmental activities (reported in the statement of net position and the statement of activities) and governmental funds is reconciled in the basic financial statements. The basic governmental fund financial statements can be found on pages 21-25 of this report.

Notes to the Basic Financial Statements

The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. These notes to the basic financial statements can be found on pages 27-69 of this report.

Required Supplementary Information

In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the District’s net pension liability and net OPEB liability. The required supplementary information can be found on pages 71-92 of this report.

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INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2023 (UNAUDITED)

The District as a Whole

The statement of net position provides the perspective of the District as a whole. The table below provides a summary of the District’s net position at June 30, 2023 and June 30, 2022.

Net Position

Governmental Activities
	2023	

Assets

Governmental Activities
	2022	

Current and other assets Capital assets, net

Total assets

$ 106,727,786 104,080,487

210,808,273

$ 135,968,618 58,222,851

194,191,469

Deferred outflows of resources

Unamortized deferred charges on debt refunding Pension
OPEB

Total deferred outflows of resources

Liabilities Current liabilities
Long-term liabilities:

Due within one year

Due in more than one year:

Net pension liability

Net OPEB liability Other amounts

Total liabilities

Deferred inflows of resources

Property taxes levied for the next fiscal year Payments in lieu of taxes for the next fiscal year
Pension OPEB

Total deferred inflows of resources

-9,798,723 753,147

10,551,870

11,399,304

4,014,324

39,741,467

1,967,167 98,408,133

155,530,395

22,391,505 6,345,080
3,809,742 5,622,737

38,169,064

36,585 9,875,140 931,120

10,842,845

6,656,612

3,793,784

23,910,273

2,730,102 92,338,996

129,429,767

21,514,864 6,140,662
19,349,422 5,352,461

52,357,409

Net Position

Net Investment in capital assets

Restricted Unrestricted (deficit)

Total net position

42,249,026

2,614,054 (17,202,396)

$	27,660,684

38,736,578

992,833 (16,482,273)

$	23,247,138

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INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2023 (UNAUDITED)

The net pension liability is reported pursuant to Governmental Accounting Standards Board (GASB) Statement 68, “Accounting and Financial Reporting for Pensions—an Amendment of GASB Statement 27.” The net other postemployment benefits (OPEB) liability/asset is reported pursuant to GASB Statement 75, “Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions.” For reasons discussed below, many end users of this financial statement will gain a clearer understanding of the District’s actual financial condition by adding deferred inflows related to pension and OPEB, the net pension liability, and the net OPEB liability to the reported net position and subtracting deferred outflows related to pension and OPEB and the net OPEB asset.

Governmental Accounting Standards Board standards are national and apply to all government financial reports prepared in accordance with generally accepted accounting principles. Prior accounting for pensions (GASB 27) and postemployment benefits (GASB 45) focused on a funding approach. This approach limited pension and OPEB costs to contributions annually required by law, which may or may not be sufficient to fully fund each plan’s net pension liability or net OPEB liability. GASB 68 and GASB 75 take an earnings approach to pension and OPEB accounting; however, the nature of Ohio’s statewide pension/OPEB plans and state law governing those systems requires additional explanation in order to properly understand the information presented in these statements.

GASB 68 and GASB 75 require the net pension liability and the net OPEB liability to equal the District’s proportionate share of each plan’s collective:

1.	Present value of estimated future pension/OPEB benefits attributable to active and inactive employees’ past service. 2.	Minus plan assets available to pay these benefits.

GASB notes that pension and OPEB obligations, whether funded or unfunded, are part of the “employment exchange” – that is, the employee is trading his or her labor in exchange for wages, benefits, and the promise of a future pension and other postemployment benefits. GASB noted that the unfunded portion of this promise is a present obligation of the government, part of a bargained-for benefit to the employee, and should accordinglybe reported by the government as a liability since they received the benefit of the exchange. However, the District is not responsible for certain key factors affecting the balance of these liabilities. In Ohio, the employee shares the obligation of funding pension benefits with the employer. Both employer and employee contribution rates are capped by State statute. A change in these caps requires action of both Houses of the General Assembly and approval of the Governor. Benefit provisions are also determined by State statute. The Ohio Revised Code permits, but does not require, the retirement systems to provide healthcare to eligible benefit recipients. The retirement systems may allocate a portion of the employer contributions to provide for these OPEB benefits.

The employee enters the employment exchange with the knowledge that the employer’s promise is limited not by contract but by law. The employer enters the exchange also knowing that there is a specific, legal limit to its contribution to the retirement system. In Ohio, there is no legal means to enforce the unfunded liability of the pension/OPEB plan as against the public employer. State law operates to mitigate/lessen the moral obligation of the public employer to the employee, because all parties enter the employment exchange with notice as to the law. The retirement system is responsible for the administration of the pension and OPEB plans.

Most long-term liabilities have set repayment schedules or, in the case of compensated absences (i.e. sick and vacation leave), are satisfied through paid time-off or termination payments. There is no repayment schedule for the net pension liability or the net OPEB liability. As explained above, changes in benefits, contribution rates, and return on investments affect the balance of these liabilities but are outside the control of the local government. In the event that contributions, investment returns, and other changes are insufficient to keep up with required payments, State statute does not assign/identify the responsible party for the unfunded portion. Due to the unique nature of how the net pension liability and the net OPEB liability are satisfied, these liabilities are separately identified within the long-term liability section of the statement of net position.

In accordance with GASB 68 and GASB 75, the District’s statements prepared on an accrual basis of accounting include an annual pension expense and an annual OPEB expense for their proportionate share of each plan’s change in net pension liability and net OPEB liability, respectively, not accounted for as deferred inflows/outflows.

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INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2023 (UNAUDITED)

Analysis of Net Position

Over time, net position can serve as a useful indicator of a government’s financial position. At June 30, 2023, the District’s assets plus deferred outflows of resources exceeded liabilities plus deferred inflows of resources by $27,660,684.

Current and other assets decreased as the District used current assets in cash to finance the maintenance and improvements to current facilities and mechanical systems, security upgrades, and replacement of the current Indian Hill Middle School. Capital assets increased as the District began improvements financed by the Series 2021 bond issue. These projects are being capitalized as construction in progress at fiscal year-end.

At fiscal year-end, capital assets represented 49.37% of total assets. Capital assets include land, construction in progress, land improvements, buildings and improvements, furniture and equipment, and vehicles. Net investment in capital assets at June 30, 2023, was$42,249,026. These capital assets are used to provide services to the students and are not available for future spending. Although the District’s investment in capital assets is reported net of related debt, it should be noted that the resources to repay the debt must be provided from other sources, since capital assets may not be used to liquidate these liabilities.

Current liabilities increased primarily due to contracts payable and retainage payable related to school improvement projects financed by the Series 2021 bond issue.

Long-term liabilities increased in large part to a substantial increase in the net pension liability. The net pension liability increased $15,831,194 or 66.21% and deferred inflows of resources related to pension decreased $15,539,680. These changes were the result of changes at the pension system level for the State Teachers Retirement System (STRS) and the School Employees Retirement System (SERS). Primarily, net investment income on investments at both pension systems were negative for the fiscal year 2022 measurement date that are used for the fiscal year 2023 reporting. This caused a large decrease in their respective fiduciarynet positionswhichwas a drastic change from the previous fiscal year’s large positive investment returns. The District’s net pension liability and net OPEB liability are outside of the control of the District. The District contributes its statutorily required contributions to the pension systems; however, it is the pension systems that collect, hold and distribute pensions and OPEB to District employees, not the District. See Note 13 and Note 14 for more detail.

A portion of the District’s net position, $2,614,054 represents resources that are subject to external restriction on how they may be used. The remaining balance of unrestricted net position is a deficit of ($17,202,396).

The graph below presents the District’s governmental activities assets, deferredoutflows of resources, liabilities, deferred inflows of resources and net position at June 30, 2023 and June 30, 2022.

Governmental Activities

$250,000,000

$200,000,000

$150,000,000

$100,000,000

$221,360,143

$193,699,459

$205,034,314

$181,787,176

Net Position

Liabilities and Deferred Inflows

$50,000,000

$-

$27,660,684

Fiscal Year 2023

$23,247,138	Assets and Deferred outflows

Fiscal Year 2022

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INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2023 (UNAUDITED)

The table below shows the change in net position for fiscal years 2023 and 2022.

Change in Net Position

Revenues Program revenues:
Charges for services and sales Operating grants and contributions Capital grants and contributions
General revenues: Propertytaxes
Payments in lieu of taxes Grants and entitlements Investment earnings
Change in fair value of investments Miscellaneous

Total revenues

Expenses Program expenses:
Instruction: Regular Special Vocational Other
Support services: Pupil Instructional staff
Board of education Administration Fiscal
Business

Operations and maintenance Pupil transportation
Central

Operation of non-instructional services: Food service operations
Other non-instructional services Extracurricular activities
Interest and fiscal charges

Total expenses

Change in net position

Net position at beginning of year

Governmental Activities
	2023	

$     1,927,524 2,445,730 508,450

35,795,982 6,338,262 4,879,554 1,267,326
971,129 183,044

54,317,001

19,898,910 4,658,700 14,974 697,922

3,782,533 2,815,800 19,923 3,833,154 955,301 50,969 3,837,477 2,802,945 219,288

864,225 814,730 2,047,923 2,588,681

49,903,455

4,413,546

23,247,138

Governmental Activities
	2022	

$       1,409,118 3,212,944 635,803

35,448,674 5,821,454 4,884,411 299,887
(1,700,458) 85,043

50,096,876

17,161,069 3,822,806 16,912 141,572

3,059,026 1,740,466 25,226 3,143,381 1,296,479 56,583 3,466,847 2,332,421 173,869

985,497 698,599 1,442,323 3,232,004

42,795,080

7,301,796

15,945,342

Net position at end of year	$ 27,660,684	$	23,247,138

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INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2023 (UNAUDITED)

Governmental Activities

Net position of the District’s governmental activities increased $4,413,546. Total governmental expenses of $49,903,455 were offset by program revenues of $4,881,704 and general revenues of $49,435,297. Program revenues supported 9.78% of the total governmental expenses.

Charges for services program revenues increased due to increased participation in the food service program and student related activities and extracurricular activities. Each of these areas increased as conditions continued to improve from the COVID-19 pandemic. Operating grants and contributions decreased primarily due to decreased federal grant funding including Elementary and Secondary School Emergency Relief (ESSER) funding. Capital grants and contributions decreased as the District received contributions for the Home of the Braves sports complex and a digital arts lab in fiscal year 2022. During fiscal year 2023, the District received capital grants for school bus purchases and public safety.

The primary sources of revenue for governmental activities are derived from property taxes, payments in lieu of taxes and grants and entitlements. These revenue sources represent 86.55% of total governmental revenue. Property tax revenue remained comparable to the prior year.

Payments in lieu of taxes (PILOT) revenue consists of Sycamore Township Tax Increment Financing (TIF) payments which increased slightly from the prior year. Unrestricted grants and entitlements remained comparable to the prior year. Earnings on investments increased as the District had more money invested rather than deposited in bank accounts in fiscal 2023 compared to 2022 and due to increased interest rates on those applicable investments. GAAP requires certain investments to be reported at fair value rather than cost. Fluctuations in the fair value of investments are reported as an increase (decrease) in fair value of investments. The fair value of investments fluctuate as interest rates rise or fall over time. The District intends to hold all investments to maturity thus eliminating the risk of fluctuations in fair value.

Expenses of the governmental activities increased $7,108,375 or 16.61%. On an accrual basis, the District reported $3,986,296 and ($255,136) in pension expense for fiscal year 2023 and 2022, respectively. In addition, the District reported ($919,019) and ($331,812) in OPEB expense for fiscal year 2023 and 2022, respectively. The increase in the net pension and OPEB expense from fiscal year 2022 to fiscal year 2023 was $3,654,225. This increase is primarily the result of decreased investment income at the retirement systems level which affects the District’s pension expense. Fluctuations in the pension and OPEB expense makes it difficult to compare financial information between years. Pension and OPEB expense are components of program expenses reported on the statement of activities.

$60,000,000

$50,000,000

$40,000,000

$30,000,000

$20,000,000

$10,000,000

$49,903,455
$54,319,701

$50,096,876

$42,795,080

$-

Fiscal Year 2023	Fiscal Year 2022

Expenses	Revenues

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INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2023 (UNAUDITED)

The statement of activities shows the cost of program services and the charges for services and grants offsetting those services. The following table shows, for governmental activities, the total cost of services and the net cost of services. That is, it identifies the cost of these services supported by tax revenue and unrestricted State grants and entitlements.

Governmental Activities

Program expenses Instruction:

Total Cost of Services
	2023	

Net Cost of Services
	2023	

Total Cost of Services
	2022	

Net Cost of Services
	2022	

Regular Special Vocational Other
Support services: Pupil Instructional staff
Board of education Administration Fiscal
Business

Operations and maintenance Pupil transportation
Central

Operations of non-instructional services Food service operations
Other non-instructional services Extracurricular activities
Interest and fiscal charges

Total expenses

$      19,898,910 4,658,700 14,974
697,922

3,782,533 2,815,800 19,923 3,833,154 955,301 50,969 3,837,477 2,802,945 219,288

864,225 814,730 2,047,923 2,588,681

$	49,903,455

$      18,949,756 3,916,617 14,974
591,866

3,693,991 2,762,293 19,923 3,760,810 779,586 50,969 3,604,201 2,708,166 219,288

216,844 152,107 991,679 2,588,681

$	45,021,751

$      17,161,069 3,822,806 16,912
141,572

3,059,026 1,740,466 25,226 3,143,381 1,296,479 56,583 3,466,847 2,332,421 173,869

985,497 698,599 1,442,323 3,232,004

$	42,795,080

$       15,785,560 3,269,033 16,912
21,552

2,976,415 1,678,467 25,226 3,143,381 1,135,398 56,583 3,422,824 2,220,334 173,869

139,715 30,097 209,845 3,232,004

$	37,537,215

The dependence upon tax and other general revenues for governmental activities is apparent, 92.89% of instruction activities are supported through taxes and other general revenues. For all governmental activities, general revenue support is 90.22%. The District’s taxpayers, as a whole, are by far the primary support for District’s students.

12

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2023 (UNAUDITED)

The graph below presents the District’s governmental activities revenue for fiscal years 2023 and 2022.

Governmental Activities - General and Program Revenues

$60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000
$-

$49,435,297

$4,881,704

Fiscal Year 2023

$44,839,011

$5,257,865

Fiscal Year 2022

General Revenues

Program Revenues

The District’s Funds

The District’s governmental funds reported a combined fund balance of $62,114,523, which is less than last year’s total of $97,494,115. The schedule below indicates the fund balance and the total change in fund balance as of June 30, 2023 and 2022.

Fund Balance June 30, 2023

Fund Balance
June 30,2022	 Change 

General

Bond Retirement Building
Other Governmental

Total

$       23,791,814 6,723,928 30,823,698 775,085

$	62,114,525

$       24,961,790 6,631,358 65,097,606 803,361

$	97,494,115

$	(1,169,976) 92,570
(34,273,908) (28,276)

$	(35,379,590)

13

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2023 (UNAUDITED)

General Fund

The District’s general fund balance decreased $1,169,976 from June 30, 2022. The table that follows assists in illustrating the financial activities of the general fund.

2023	2022

 Amount 	 Amount 

Revenues

Increase (Decrease)

Percentage
     Change     

Property taxes

Payments in lieu of taxes Earnings on investments Increase (decrease) in fair
value of investments Intergovernmental Other revenues
Total

Expenditures Instruction Support services
Operation of non-instructional services Extracurricular activities
Facilities acquisition and construction Capital outlay
Debt service

Total

$ 30,135,106 6,338,262 410,664

(32,459) 4,933,004
942,361 $ 42,726,938

$ 23,295,645 16,794,469 48,400 1,002,643 1,488,985
-715,069
$ 43,345,211

$ 29,856,521 5,821,454 173,657

(731,975) 4,758,649 1,189,196
$ 41,067,502

$ 21,271,872 15,322,484 31,965 1,023,907 1,812,864 130,984 565,832
$ 40,159,908

$	278,585 516,808 237,007

699,516 174,355 (246,835)
$	1,659,436

$      2,023,773 1,471,985 16,435
(21,264) (323,879) (130,984)
149,237

$	3,185,303

0.93 % 8.88 % 136.48 %

95.57 % 3.66 % (20.76) % 4.04 %

9.51 % 9.61 % 51.42 % (2.08) % (17.87) % (100.00) % 26.37 %
7.93 %

Overall general fund revenues increased $1,659,436 or 4.04%.

Property tax revenue and payments in lieu of taxes remained comparable to the prior year. Earnings on investments increased as interest rates on investments have improved from the prior year. The decrease in fair value of investments is due to the District being required to report investments at fair value rather than cost. The fair value fluctuates throughout the year. The District intends to hold all investments to maturity thus eliminating the risk of fluctuations in fair value.

Overall general fund expenditures increased $3,185,303 or 7.93%. Instruction expenditures increased primarily due to normal and customary wage and benefit increases. Support services expenditures increased primarily in support services – pupil and pupil transportation. Facilities and acquisition and construction remained comparable to the prior year as the District continues energy and various other improvement projects financed in the general fund.

General Fund Budgeting Highlights

The District’s budget is prepared according to Ohio law and is based on accounting for certain transactions on a basis of cash receipts, disbursements and encumbrances. The most significant budgeted fund is the general fund.

For the general fund, original and final budgeted revenues and other financing sources were $41,898,852 and $44,500,000, respectively. Actual revenues and other financing sources for fiscal 2023 were $43,970,253, which was $529,747 less than the final budget estimates.

General fund original appropriations (appropriated expenditures and other financing uses) were $41,698,722 and final appropriations were $45,498,721. The actual budget basis expenditures and other financing uses for fiscal 2023 totaled $45,321,558, which was $177,163 less thanthe final budgeted appropriations. The primary area of decrease from the final budget to actual expenses was in the area of regular and other instruction as the District conservatively budgeted in the original and final budgets.

14

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2023 (UNAUDITED)

Capital Assets and Debt Administration

Capital Assets

At the end of fiscal 2023, the District had $104,080,487 invested in land, construction in progress, land improvements, buildings and improvements, furniture and equipment, vehicles and intangible right to use: lease equipment and computer software. This entire amount is reported in governmental activities. The following table shows fiscal 2023 balances compared to the fiscal 2022 balances:

Capital Assets at June 30 (Net of Depreciation)

	Governmental Activities	

	2023	                        	2022	

Land

Construction in progress Land improvements Buildings and improvements Furniture and equipment Vehicles
Intangible right to use: Lease equipment Computer software

Total

$           501,523 63,300,134 2,114,745 36,121,389 223,349 1,719,748

96,324 3,275

$ 104,080,487

$         501,523 15,204,970 2,337,426 37,762,969 342,267 1,950,771

122,925 -

$ 58,222,851

Total increase to capital assets for 2023 was $45,857,636. This is due to additions of $48,124,779 being more than total depreciation expense of $2,225,929 and various miscellaneous transactions reducing capital assets by $41,214.

See Note 9 to the basic financial statements for additional information on the District’s capital assets.

Debt Administration

The District had general obligation bonds, lease obligations, and financed purchase notes payable outstanding at June 30, 2023. Of this total, $3,923,937 is due within one year and $87,469,802 is due in greater than one year. The following table summarizes the debt outstanding.

Outstanding Debt, at Year End

Governmental Activities 2023

Governmental Activities
	2022	

General obligation bonds Lease obligations
Financed purchase notes payable

Total

$ 78,080,000 80,205 13,233,534

$ 91,393,739

$ 81,170,000 126,622 3,613,479

$ 84,910,101

The District’s debt activity is detailed in Note 11 to the basic financial statements.

15

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2023 (UNAUDITED)

Current Financial Related Activities

The IndianHill SchoolDistrict's current financial story is one of fiscal stability, and that is a result ofour community’s investment in our schools and our Board of Education's commitment to operate in a fiscally responsible manner.

Due to the passage of the May 2021 combined bond/levy, work is now underway for our District to address the serious and substantial needs within our buildings. The bond is a 30-year financial commitment that will generate approximately $77 million for our facilities. At the conclusion of Fiscal Year 2023, work continues on the new Middle School with an expected move-in date of January 2024. A new wing was completed at the Elementary School that will house a STEM lab, orchestra, band, choir, foreign language and art rooms as well as a gymnasium. A new entrance and multiple renovations were completed at the Primary School that updated security, light, and mechanical equipment as well as creating and refreshing learning areas and the cafeteria.

In August 2021, the Indian Hill School District had a very successful sale of $71,450,000 of AAA rated tax exempt bonds. The bonds were very well received in the market, receiving roughly $110,000,000 in orders. Interest rates in the market were near all-time lows, allowing the school district to achieve an interest rate of 2.316%. Due to inflation on materials and labor, the District was faced with an overage near $10 million. Instead of cutting the scope of the project, the District will receive an additional $10 million from Webster Bank in October of 2022 to complete the project as designed. This agreement will be a lease/purchase agreement with an interest rate of 3.75%.

As we approach Fiscal Year 2024, the District closely watches property reappraisal and its effects on the District’s finances. Throughout Southwest Ohio and Hamilton County, average property value increases are projected to be above 30 percent. This would mean that Indian Hill EVSD would see revenue growth on the inside millage portion of the assessed property taxes. In addition, this would push the District closer to the twenty mill floor, potentially even reaching that mark. Being at the twenty-mill floor would mean that the District would receive revenue growth relative to the growth of property value.

The Indian Hill School District will continue to look for opportunities to provide cost savings to our stakeholders in all that we do as an organization. Our budget is balanced; our financial outlook is stable; our focus is to continue to provide our stakeholders the excellence they expect and deserve and doing so in a fiscally responsible manner.

Contacting the District’s Financial Management

This financial report is designed to provide our citizens, taxpayers, and investors and creditors with a general overview of the District’s finances and to show the District’s accountability for the money it receives. If you have questions about this report or need additional financial information contact Mr. Michael W. Davis, Treasurer, Indian Hill Exempted Village School District, 6855 Drake Road, Cincinnati, Ohio 45243.

16

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

STATEMENT OF NET POSITION JUNE 30, 2023

Assets:
Equity in pooled cash and investments Cash with escrow agent
Cash in segregated accounts Receivables:
Property taxes
Payment in lieu of taxes Accounts
Accrued interest Intergovernmental
Prepayments Net OPEB asset Capital assets:
Nondepreciable capital assets Depreciable capital assets, net Capital assets, net
Total assets

Governmental Activities

$                   58,722,305 561,699
41,863

37,144,447 6,345,080 26,726 75,427 22,368 26,599 3,761,272

63,801,657 40,278,830 104,080,487
210,808,273

Deferred outflows of resources: Pension
OPEB

Total deferred outflows of resources

Liabilities: Accounts payable Contracts payable Retainage payable
Accrued wages and benefits payable Intergovernmental payable
Pension and postemployment benefits payable Accrued interest payable
Matured bonds payable Deposits held and due to others Long-term liabilities:
Due within one year

Due in more than one year: Net pension liability
Net OPEB liability

Other amounts due in more than one year Total liabilities

Deferred inflows of resources:

Property taxes levied for the next fiscal year

Payment in lieu of taxes levied for the next fiscal year Pension
OPEB

Total deferred inflows of resources

Net position:

Net investment in capital assets Restricted for:
Capital projects OPEB
State funded programs Food service operations Extracurricular
Unrestricted (deficit)

Total net position

9,798,723 753,147 10,551,870

257,387 5,766,553 1,296,400 3,229,637 67,345 501,568 247,885 28,492 4,037

4,014,324

39,741,467 1,967,167 98,408,133 155,530,395

22,391,505 6,345,080 3,809,742 5,622,737 38,169,064

42,249,026

1,169,828 750,062 40,894 103,048 550,222
(17,202,396)

 $	27,660,684 

SEE ACCOMPANYING NOTES TO THE BASIC FINANCIAL STATEMENTS

17

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

STATEMENT OF ACTIVITIES

FOR THE FISCAL YEAR ENDED JUNE 30, 2023

Governmental activities: Instruction:
Regular Special Vocational Other
Support services: Pupil Instructional staff
Board of education Administration Fiscal
Business
Operations and maintenance Pupil transportation
Central
Operation of non-instructional services: Food service operations
Other non-instructional services Extracurricular activities
Interest and fiscal charges

Expenses

$         19,898,910 4,658,700
14,974 697,922

3,782,533 2,815,800 19,923 3,833,154 955,301 50,969 3,837,477 2,802,945 219,288

864,225 814,730 2,047,923 2,588,681

Charges for Services and Sales

$                    394,861 43,232
--

---
62,572 175,715 -
9,840 --

520,317 -720,987 -

Program Revenues Operating Grants and Contributions

$                   554,293 698,851
-106,056

88,542 53,507 -
9,772 --
12,606 49,779 -

127,064 662,623 82,637 -

Capital Grants and Contributions

$	----

------
210,830 45,000 -

--
252,620 -

Totals	 $	49,903,455   $	1,927,524   $	2,445,730   $	508,450 

General revenues: Property taxes levied for:
General purposes Debt service
Payments in lieu of taxes

Grants and entitlements not restricted to specific programs
Capital donations not restricted to specific programs
Investment earnings

Increase in fair value of investments Gain on discal of capital assets Miscellaneous
Total general revenues

Change in net position

Net position at beginning of year

Net position at end of year

SEE ACCOMPANYING NOTES TO THE BASIC FINANCIAL STATEMENTS

18

Net (Expense) Revenue and Changes in Net Position Governmental Activities

$          (18,949,756) (3,916,617) (14,974)
(591,866)

(3,693,991) (2,762,293) (19,923) (3,760,810) (779,586) (50,969) (3,604,201) (2,708,166) (219,288)

(216,844) (152,107) (991,679) (2,588,681)

(45,021,751)

30,173,244 5,622,738 6,338,262

4,879,554

85,000 1,267,326 971,129 1,550 96,494 49,435,297

4,413,546

23,247,138

 $	27,660,684 

19

THIS PAGE IS INTENTIONALLY LEFT BLANK

20

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2023

General Assets:

Bond Retirement

Nonmajor Governmental
Building	Funds

Total Governmental Funds

Equity in pooled cash and investments Cash with escrow agent
Cash in segregated accounts Receivables:
Property taxes
Payment in lieu of taxes Accounts
Accrued interest Interfund loans Intergovernmental
Prepayments

$      15,552,965 561,699
41,863

31,138,573 6,345,080 10,601 69,198 51,817
53 26,599

$	4,548,928 --

6,005,874 ------

$	37,768,095	$ -
-

--
2,534 6,229 -
--

852,317 --

--
13,591 --
22,315 -

$      58,722,305 561,699
41,863

37,144,447 6,345,080 26,726 75,427 51,817 22,368 26,599

Total assets	 $	53,798,448   $	10,554,802   $	37,776,858   $	888,223   $ 103,018,331 

Liabilities: Accounts payable Contracts payable Retainage payable
Accrued wages and benefits payable Intergovernmental payable
Pension and postemployment benefits payable Interfund loans payable
Deposits held and due to others Matured bonds payable
Total liabilities

$	237,158	$ -
109,793 3,206,372 67,007 488,158
-4,037
28,492 4,141,017

-	$	-	$ -                  5,766,553
-	1,186,607 -                                 --                                 --                                 --                                 --                                 --                                 --	6,953,160

20,229 --
23,265 338 13,410 51,817 -
-109,059

$           257,387 5,766,553 1,296,400 3,229,637 67,345
501,568 51,817 4,037 28,492 11,203,236

Deferred inflows of resources:

Property taxes levied for the next fiscal year Payment in lieu of taxes levied for the next fiscal yea Delinquent property tax revenue not available Intergovernmental revenue not available
Accrued interest not available Total deferred inflows of resources

Fund balances: Nonspendable:
Prepaids Restricted:
Debt service

Capital improvements Food service operations Non-public schools State funded programs Extracurricular
Committed: Termination benefits
Assigned:

Student instruction Student and staff support
Operation pf non-instructional Facilities acquisition and construction Other purposes
Unassigned (deficit)

Total fund balances

18,710,106 6,345,080 788,467
-21,964
25,865,617

26,599

------

106,727

11,539 130,107 7,000 904,094 69,996 22,535,752

23,791,814

3,681,399 -
149,475 --
3,830,874

-

6,723,928 -----

-

------

6,723,928

------

-

-30,823,698 -
---

-

------

30,823,698

---
4,079 -4,079

-

-85,000
103,048 29,778 11,116 550,222

-

-----
(4,079)

775,085

22,391,505 6,345,080 937,942 4,079 21,964 29,700,570

26,599

6,723,928 30,908,698 103,048 29,778 11,116 550,222

106,727

11,539 130,107 7,000 904,094 69,996 22,531,673

62,114,525

Total liabilities, deferred inflows and fund balances  $	53,798,448   $	10,554,802   $	37,776,858   $	888,223   $ 103,018,331 

SEE ACCOMPANYING NOTES TO THE BASIC FINANCIAL STATEMENTS

21

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

RECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCES TO NET POSITION OF GOVERNMENTAL ACTIVITIES JUNE 30, 2023

Total governmental fund balances	$	62,114,525

Amounts reported for governmental activities on the statement of net position are different because:

Capital assets used in governmental activities are not financial

resources and therefore are not reported in the funds.	104,080,487

Other long-term assets are not available to pay for current-
period expenditures and therefore are deferred inflows in the funds.
Property taxes receivable	$ Accrued interest receivable
Intergovernmental receivable Total

937,942 21,964 4,079
963,985

Unamortized premiums on bonds issued are not recognized in the funds.

Accrued interest payable is not due and payable in the current period and therefore is not reported in the funds.

(8,649,823)

(247,885)

The net pension/OPEB assets & liabilities are not due and payable in the current period; therefore, the assets, liabilities and related deferred inflows/outflows are not reported in governmental funds.
Deferred outflows - pension Deferred inflows - pension Net pension liability Deferred outflows - OPEB Deferred inflows - OPEB Net OPEB asset
Net OPEB liability Total

Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds.
General obligation bonds Leases
Financed purchase notes payable Compensated absences
Total

9,798,723 (3,809,742)
(39,741,467) 753,147
(5,622,737) 3,761,272 (1,967,167)

(78,080,000) (80,205) (13,233,534) (2,378,895)

(36,827,971)

(93,772,634)

Net position of governmental activities	$	27,660,684

SEE ACCOMPANYING NOTES TO THE BASIC FINANCIAL STATEMENTS

22

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023

General Revenues:

Bond Retirement

Nonmajor Governmental
Building	Funds

Total Governmental Funds

Property taxes

Payment in lieu of taxes Intergovernmental Investment earnings Tuition and fees Extracurricular
Rental income Charges for services
Contributions and donations Miscellaneous
Increase (decrease) in fair value of investments

Total revenues

$      30,135,106        $ 6,338,262 4,933,004
410,664 425,523 18,570 9,840
-264,620 223,808 (32,459)
42,726,938

5,614,318	$ -
192,021 --------
5,806,339

-	$ -
199,714 852,377 -
----
48,401 1,003,588
2,104,080

--
2,327,229 24,644
-777,559 -520,317 170,475 -
-

3,820,224

$      35,749,424 6,338,262 7,651,968 1,287,685 425,523 796,129
9,840 520,317 435,095 272,209 971,129
54,457,581

Expenditures: Current:
Instruction: Regular Special Vocational Other
Support services: Pupil Instructional staff
Board of education Administration Fiscal
Business

Operations and maintenance Pupil transportation
Central

Operation of non-instructional services: Food service operations
Other non-instructional services Extracurricular activities
Facilities acquisition and construction Capital outlay
Debt service: Principal retirement
Interest and fiscal charges Note issuance costs
Total expenditures

Excess of revenues over (under) expenditures

Other financing sources: Sale of capital assets
Issuance of financed purchase note payable Transfers in
Transfers (out)

Total other financing sources (uses)

Net change in fund balances

Fund balances at beginning of year

18,666,026 4,101,002 301 528,316

3,638,959 2,505,971 20,007 3,708,498 893,523 50,969 3,433,940 2,320,839 221,763

-48,400
1,002,643 1,488,985 -

426,362 288,707 -
43,345,211

(618,273)

1,550 --
(553,253) (551,703)

(1,169,976)

24,961,790

----

----
76,625 ----

-----

3,090,000 2,547,144 -5,713,769

92,570

-----

92,570

6,631,358

----

----
34,166 ----

---
46,223,822 -

--
120,000 46,377,988

(44,273,908)

-10,000,000 -
-10,000,000

(34,273,908)

65,097,606

206,088 534,505 -106,056

60,080 57,382 -92,290 -
--
48,740 -

733,317 764,999 937,432 860,864 -

---
4,401,753

(581,529)

--
553,253 -553,253

(28,276)

803,361

18,872,114 4,635,507 301 634,372

3,699,039 2,563,353 20,007 3,800,788 1,004,314 50,969 3,433,940 2,369,579 221,763

733,317 813,399 1,940,075 48,573,671 -

3,516,362 2,835,851 120,000 99,838,721

(45,381,140)

1,550 10,000,000 553,253
(553,253) 10,001,550

(35,379,590)

97,494,115

Fund balances at end of year	 $	23,791,814   $	6,723,928   $	30,823,698   $	775,085   $	62,114,525 

SEE ACCOMPANYING NOTES TO THE BASIC FINANCIAL STATEMENTS

23

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED JUNE 30, 2023

Net change in fund balances - total governmental funds	$	(35,379,590)

Amounts reported for governmental activities in the statement of activities are different because:

Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets are allocated over their estimated useful lives as depreciation expense.
Capital asset additions Current year depreciation Total

$	48,124,779 (2,225,929)
45,898,850

The net effect of various miscellaneous transactions involving capital assets

(i.e., sales, disposals, trade-ins, and donations) is to decrease net position.	(41,214)

Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds.
Property taxes
Earnings on investments Intergovernmental
Total

46,558 4,285
(192,973)
(142,130)

Repayment of bond, note, financed-purchases, and lease principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities
on the statement of net position.

Issuance of financed purchase notes payable are recorded as other financing sources in the funds, however, in the statement of activities, they are not reported as revenus as they increase liabilities on the statement of net position.

3,516,362

(10,000,000)

In the statement of activities, interest is accrued on outstanding bonds, whereas in governmental funds, an interest expenditure is reported when due. The following items resulted in additional interest being reported in the statement of activities:
(Increase) decrease in accrued interest payable Amortization of bond premiums
Amortization of deferred charges Total

Contractually required contributions are reported as expenditures in governmental funds; however, the statement of net position reports these amounts as deferred outflows.
Pension OPEB Total

Except for amounts reported as deferred inflows/outflows, changes in the net pension/OPEB liability/asset are reported as pension/OPEB expense in the statement of activities.
Pension OPEB Total

(20,822) 424,577 (36,585)

3,618,365 73,444

(3,986,296) 919,019

367,170

3,691,809

(3,067,277)

Some expenses reported in the statement of activities, such as compensated absences, do not require the use of current financial resources and
therefore are not reported as expenditures the governmental funds.	(430,434)

Change in net position of governmental activities	$	4,413,546

SEE ACCOMPANYING NOTES TO THE BASIC FINANCIAL STATEMENTS

24

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON-GAAP BUDGETARY BASIS)
GENERAL FUND

FOR THE FISCAL YEAR ENDED JUNE 30, 2023

Variance with Budgeted Amounts	Final Budget
Positive Original	Final	Actual	(Negative)
Revenues:

From local sources:

Property taxes

Payment in lieu of taxes Tuition
Investment earnings Classroom materials and fees Rental income
Contributions and donations Other local revenue
Intergovernmental - state

Total revenues

$	29,379,712	$ 6,136,221
116,355 904,050 298,825 9,680 235,904 40,923 4,777,182
41,898,852

30,350,600	$ 6,339,000
120,200 933,925 308,700 10,000 243,700 42,275 4,935,050
43,283,450

30,350,107	$ 6,338,263
119,720 400,651 305,803 9,840 252,620 44,267 4,933,387
42,754,658

(493) (737) (480) (533,274) (2,897) (160)
8,920 1,992 (1,663)
(528,792)

Expenditures: Current:
Instruction: Regular Special Vocational Other
Support services: Pupil Instructional staff
Board of education Administration Fiscal
Business

Operations and maintenance Pupil transportation
Central

Operation of non-instructional services Other non-instructional services
Extracurricular activities

Facilities acquisition and construction Debt service:
Principal

Interest and fiscal charges Total expenditures

Excess of revenues over (under) expenditures

Other financing sources (uses): Transfers (out)
Advances in Advances (out)
Sale of capital assets

Total other financing sources (uses)

Net change in fund balance

Fund balance at beginning of year Prior year encumbrances appropriated

18,645,007 3,399,979 36
456,419

3,275,970 2,253,632 9,748 3,617,961 917,630 17,396 3,458,098 1,812,228 195,529

29,198 888,172 1,983,354

285,000 278,365 41,523,722

375,130

(175,000) ---
(175,000)

200,130

15,487,236

698,721

18,814,126 4,005,973 2,875 516,610

3,663,799 2,551,830 20,000 3,754,018 915,435 52,200 3,583,290 2,406,058 218,495

50,335 1,025,101 2,650,541

285,000 278,365 44,794,051

(1,510,601)

(553,253) 1,215,000
(151,417) 1,550
511,880

(998,721)

15,487,236

698,721

18,748,547 4,011,107 501 517,306

3,663,748 2,542,878 19,735 3,747,290 912,300 52,345 3,580,391 2,408,118 219,636

50,792 1,028,795 2,649,634

285,000 278,365 44,716,488

(1,961,830)

(553,253) 1,214,045
(51,817) 1,550
610,525

(1,351,305)

15,487,236

698,721

65,579 (5,134)
2,374 (696)

51 8,952 265 6,728 3,135
(145) 2,899
(2,060) (1,141)

(457) (3,694)
907

--
77,563

(451,229)

-(955)
99,600 -98,645

(352,584)

-

-

Fund balance at end of year	 $	16,386,087   $	15,187,236   $	14,834,652   $	(352,584)

SEE ACCOMPANYING NOTES TO THE BASIC FINANCIAL STATEMENTS

25

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26

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2023

NOTE 1 - DESCRIPTION OF THE SCHOOL DISTRICT

The Indian Hill Exempted Village School District (the “District”) is located in Hamilton County, including all of the City of the Village of Indian Hill, Ohio, and portions of surrounding townships. The District serves an area of approximately 23 square miles.

The District was established in 1936 through the consolidation of existing land areas and school districts. The District is organized under Sections 2 and 3, Article VI of the Constitution of the State of Ohio. Under such laws, there is no authority for a school district to have a charter or adopt local laws. The legislative power of the school district is vested in the Board of Education, consisting of five members elected at large for staggered four-year terms.

The District was originally chartered by the Ohio State Legislature. In 1853, State laws were enacted to create local Boards of Education. Today, the District operates under current standards prescribed by the Ohio State Board of Education as provided in division (D) of Section 3301.07 and Section 119.09 of the Ohio Revised Code.

The District operates under a locally elected five-member Board form of government and provides educational services as mandated by State and/or federal agencies. This Board controls the District’s instructional and support facilities staffed by 218 certified teaching and administrative personnel and 103 classified personnel to provide services to 2,150 students and other community members.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The basic financial statements of the District have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The District’s significant accounting policies are described below.

A. Reporting Entity

The reporting entity has been defined in accordance with GASB Statement No. 14, “The Financial Reporting Entity” as amended by GASB Statement No. 39, “Determining Whether Certain Organizations Are Component Units” and GASB Statement No. 61, “The Financial Reporting Entity: Omnibus an amendment of GASB Statements No. 14 and No. 34”. The reporting entity is composed of the primary government and component units. The primary government consists of all funds, departments, boards and agencies that are not legally separate from the District. For the District, this includes general operations, food service, and student related activities of the District.

Component units are legally separate organizations for which the District is financially accountable. The District is financially accountable for an organization if the District appoints a voting majority of the organization’s Governing Board and (1) the District is able to significantly influence the programs or services performed or provided by the organization; or (2) the District is legally entitled to or can otherwise access the organization’s resources; or (3) the District is legally obligated or has otherwise assumed the responsibility to finance the deficits of, or provide financial support to, the organization; or (4) the District is obligated for the debt of the organization. Component units may also include organizations that are fiscally dependent on the District in that the District approves the budget, the issuance of debt or the levying of taxes. Certain organizations are also included as component units if the nature and significance of the relationship between the primary government and the organization is such that exclusion by the primary government would render the primary government’s financial statements incomplete or misleading. Based upon the application of these criteria, the District has no component units. The basic financial statements of the reporting entity include only those of the District (the primary government).

27

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2023

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (Continued)

JOINTLY GOVERNED ORGANIZATION

Hamilton Clermont Cooperative
The District is a participant in the Hamilton Clermont Cooperative (HCC) which is a computer consortium. HCC is an association of 31 public school districts within the boundaries of Hamilton and Clermont Counties. The organization was formed for the purpose of applying modern technology (with the aid of computers and other electronic equipment) to administrative and instructional functions among member school districts. The Governing Board of HCC consists of the superintendents and/or treasurers of the participating districts. HCC is not accumulating significant financial resources nor is it experiencing fiscal stress that may cause an additional financial benefit to or burden on members in the future. Financial information can be obtained from the HCC Board of Education, Tom Collins, Director, at 1007 Cottonwood Drive, Loveland, Ohio 45140.

PUBLIC ENTITY RISK POOL

Southwest Ohio Organization of School Health
In prior fiscal years the District joined together with Lebanon City School District, Milford Exempted Village School District, Northwest Local School District, Southwest Local School District, Winton Woods City School District and the Forest Hills Local School District and West Clermont Local School District (collectively, the “Members”) to establish a regional council of governments, organized under Chapter 167 of the Ohio Revised Code, known as the Southwest Ohio Organization of School Health (SWOOSH). The purpose of the SWOOSH is to maximize benefits and/or reduce costs of medical, prescription drugs, vision, dental, life and/or other group insurance coverage for the Members’ employees and the eligible dependents and designated beneficiaries of such employees.

The SWOOSH is governed by a Board of Directors (Board). Each Member is represented on the Board by its superintendent or his/her designee. In addition, any Member that exceeds five hundred total employees enrolled in a policy shall appoint a second representative to the Board. No Member may have more than two voting representatives. The fiscal agent for SWOOSH is the Hamilton County Educational Service Center (HCESC). The Treasurer of the Forest Hills Local School District, Alana Cropper, serves as the Treasurer of SWOOSH. The Board approves all benefit programs to be offered by or through the SWOOSH and all policies and contracts to be accepted or entered into by the SWOOSH. The Board also sets or determines all premiums and other amounts to be paid by Members. The Board also has the authority to waive premiums and other payments.

Members assume no liability beyond the payment of any dues, fees, or cooperative costs assessed by the SWOOSH and any contractual obligations for agreements entered into between the Member and the SWOOSH. Members do not assume liability for the debts of the SWOOSH and any Member withdrawing from the SWOOSH forfeits any claim to the cooperative’s assets. No Member may withdraw during the first two years after joining the SWOOSH. After the first two years of membership, a Member may withdraw at the end of any fiscal year by providing written notice of its intent to withdraw to the Board by March 1 of such fiscal year. Upon withdrawal from the SWOOSH, a school district may not become a Member again for two years and until it has fully complied with the criteria and procedures for membership established by the Board. Financial information for the SWOOSH can be obtained from Alana Cropper, Treasurer of the Forest Hills Local School District at 7946 Beechmont Ave., Cincinnati, Ohio 45255.

In January 2017, SWOOSH offered health insurance through Anthem Blue Cross Blue Shield on a self-insured basis. Each SWOOSH member district retains its own plan, but the self-funding is an aggregate of the estimated claims and reserve build. All other insurance benefit offerings remain on a fully insured basis.

28

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2023

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (Continued)

B. Fund Accounting

The District uses funds to maintain its financial records during the year. A fund is defined as a fiscal and accounting entity with a self-balancing set of accounts. There are three categories of funds: governmental, proprietary and fiduciary.

GOVERNMENTAL FUNDS

Governmental funds are those through which most governmental functions typically are financed. Governmental fund reporting focuses on the sources, uses and balances of current financial resources. Expendable assets are assigned to the various governmental funds according to the purposes for which they may or must be used. Current liabilities and deferred inflows of resources are assigned to the fund from which they will be paid. The difference between governmental fund assets and deferred outflows of resources and liabilities and deferred inflows of resources is reported as fund balance. The following are the District’s major governmental funds:

General fund - This fund is used to account for and report all financial resources not accounted for and reported in another fund. The general fund balance is available for any purpose provided it is expended or transferred according to the general laws of Ohio.

Bond Retirement Fund – This fund is used to account for the accumulation of restricted resources and payment of general obligation bond and note principal, interest and related costs.

Building fund - This fund is used to accounts for debt proceeds that are restricted for acquiring or improving capital facilities, including real property.

Other governmental funds of the District are used to account for (a) specific revenue sources that are restricted or committed to an expenditure for specified purposes other than debt service.

PROPRIETARY FUNDS

Proprietary funds are used to account for the District’s ongoing activities which are similar to those often found in the private sector. The District has no proprietary funds.

FIDUCIARY FUNDS

Fiduciary fund reporting focuses on net position and changes in net position. The fiduciary fund category is split into four classifications: pension trust funds,investment trust funds,private purpose trust funds and custodial funds. Trust funds are distinguished from custodial funds by the existence of a trust agreement or equivalent arrangements that have certain characteristics. Custodial funds are used to report fiduciary activities that are not required to be reported in a trust fund. The District has no fiduciary funds.

C. Basis of Presentation and Measurement Focus

Government-Wide Financial Statements - The statement of net position and the statement of activities display information about the District as a whole. These statements include the financial activities of the primary government.

29

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2023

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (Continued)

The government-wide statement of activities presents a comparison between direct expenses and program revenues for each function or program of the governmental activities of the District. Direct expenses are those that are specifically associated with a service, program or department and therefore clearly identifiable to a particular function. Program revenues include amounts paid by the recipient of goods or services offered by the program and grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues not classified as program revenues are presented as general revenues of the District.

The government-wide financial statements are prepared using the economic resources measurement focus. All assets and deferred outflows of resources and all liabilities and deferred inflows of resources associated with the operation of the District are included on the statement of net position.

Fund Financial Statements - Fund financial statements report detailed information about the District. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is presented in a separate column, and all nonmajor funds are aggregated into one column.

All governmental funds are accounted for using a flow of current financial resources measurement focus. With this measurement focus, only current assets and deferred outflows of resources and current liabilities and deferred inflows of resources generally are included on the balance sheet. The statement of revenues, expenditures and changes in fund balances reports on the sources (i.e., revenues and other financing sources) and uses (i.e., expenditures and other financing uses) of current financial resources. This approach differs from the manner in which the governmental activities of the government-wide financial statements are prepared. Governmental fund financial statements therefore include reconciliations with brief explanations to better identify the relationship between the government-wide statements and the statements for governmental funds.

D. Basis of Accounting

Basis of accounting determines when transactions are recorded in the financial records and reported on the financial statements.	Government-wide financial statements are prepared using the accrual basis of accounting. Governmental funds use the modified accrual basis of accounting.

Revenues - Exchange and Nonexchange Transactions - Revenue resulting from exchange transactions, in which each party gives and receives essentially equal value, are recorded on the accrual basis when the exchange takes place. On a modified accrual basis, revenue is recorded in the fiscal year in which the resources are measurable and become available. Available means that the resources will be collected within the current fiscal year or are expected to be collected soon enough thereafter to be used to pay liabilities of the current fiscal year. For the District, available means expected to be received within sixty days of fiscal year end.

Nonexchange transactions, in which the District receives value without directly giving equal value in return, include property taxes, grants, entitlements and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied (See Note 5). Revenue from grants, entitlements and donations is recognized in the fiscal 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 District must provide local resources to be used for a specified purpose, and expenditure requirements, in which the resources are provided to the District on a reimbursement basis. On a modified accrual basis, revenue from nonexchange transactions must also be available before it can be recognized.

Under the modified accrual basis, the following revenue sources are considered both measurable and available at fiscal year-end: property taxes available as an advance, interest, tuition, grants, student fees and rentals.

30

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2023

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (Continued)

Deferred Outflows of Resources and Deferred Inflows of Resources - In addition to assets, the government-wide statement of net position will report a separate section for deferred outflows of resources. Deferred outflows of resources represent a consumption of net assets that applies to a future period and will not be recognized as an outflow of resources (expense/expenditure) until then. See Notes 13 and 14 for deferred outflows of resources related to net pension liability/asset and net OPEB liability/asset, respectively.

In addition to liabilities, both the government-wide statement of net position and the governmental fund financial statements report a separate section for deferred inflows of resources. Deferred inflows of resources represent an acquisition ofnet assets that applies to a future period andwill not berecognized as an inflow of resources (revenue) until that time. Deferred inflows of resources include property taxes, payments in lieu of taxes, and unavailable revenue. Property taxes and payments in lieu of taxes represent amounts for which there is an enforceable legal claim as of June 30, 2023, but which were levied to finance fiscal year 2024 operations. These amounts have been recorded as a deferred inflow of resources on both the government-wide statement of net position and the governmental fund financial statements. Unavailable revenue is reported only on the governmental funds balance sheet, and represents receivables which will not be collected within the available period. Unavailable revenue includes, but is not limited to, delinquent property taxes and intergovernmental grants. These amounts are deferred and recognized as an inflow of resources in the period the amounts become available.

See Notes 13 and 14 for deferred inflows of resources related to net pension liability/asset and net OPEB liability/asset, respectively. These deferred inflows of resources are only reported on the government-wide statement of net position.

Expenses/Expenditures - On the accrual basis of accounting, expenses are recognized at the time they are incurred. The entitlement value of donated commodities received during the year is reported in the fund financial statements as an expenditure with a like amount reported as intergovernmental revenue.

The measurement focus of governmental fund accounting is on decreases in net financial resources (expenditures) rather than expenses. Expenditures are generally recognized in the accounting period in which the related fund liability is incurred, if measurable. Allocations of cost, such as depreciation and amortization, are not recognized in governmental funds.

E. Budgets

The budgetary process is prescribed by provisions of the Ohio Revised Code and entails the preparation of budgetary documents within an established timetable. The major documents prepared are the tax budget, the certificate of estimated resources, and the appropriation resolution, all of which are prepared on the budgetary basis of accounting. The certificate of estimated resources and the appropriations resolution are subject to amendment throughout the year with the legal restriction that appropriations cannot exceed estimated resources, as certified. All funds, other than custodial funds, are legally required to be budgeted and appropriated. The legal level of budgetary control has been established at the fund level for all funds. Any budgetary modifications at this level may only be made by resolution of the Board of Education. Although the legal level of budgetary control was established at the fund level of expenditures, the District has elected to present the general fund’s budgetary statement comparison at the fund and function level of expenditures.

Tax Budget:
Prior to January 15, the Superintendent and Treasurer submit to the Board of Education a proposedoperating budget for the fiscal year commencing the following July 1. The budget includes proposed expenditures and the means of financing for all funds. Public hearings are publicized and conducted to obtain taxpayers’ comments. The purpose of this budget document is to reflect the need for existing (or increased) tax rates. By no later than January 20, the Board-adopted budget is filed with Hamilton County Budget Commission for rate determination.

31

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2023

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (Continued)

Estimated Resources:
By April 1, the Board of Education accepts, by formal resolution, the tax rates as determined by the Budget Commission and receives the Commission’s certificate of estimated resources, which states the projected revenue of each fund. Prior to July 1, the District must revise its budget so that total contemplated expenditures from any fund during the ensuing year will not exceed the amount stated in the certificate of estimated resources. The revised budget then serves as the basis for the appropriation measure. On or about July 1, the certificate is amended to include any unencumbered cash balances from the preceding year. The certificate may be further amended during the year if projected increases or decreases in revenue areidentified bythe District Treasurer. The amounts reported in the budgetary statements reflect the amounts from the certificate of amended resources that was in effect at the time the final appropriations were passed by the Board of Education.

Appropriations:
Upon receipt from the County Auditor of an amended certificate of estimated resources based on final assessed values and tax rates or a certificate saying no new certificate is necessary, the annual appropriation resolution is enacted by the Board of Education. Prior to the passage of the annual appropriation measure, the Board may pass a temporary appropriation measure to meet the ordinary expenses of the District. The appropriation resolution, at the fund level for all funds, must be within the estimated resources as certified by the County Budget Commission and the total of expenditures may not exceed the appropriation totals at any level of control. Any revisions that alter the level of budgetary control must be approved by the Board of Education.

The Board may pass supplemental fund appropriations so long as the total appropriations by fund do not exceed the amounts set forth in the most recent certificate of estimated resources. During the year, all supplemental appropriations were legally enacted.

The appropriation resolution is subject to amendment by the Board throughout the year with the restriction that appropriations may not exceed estimated revenues. The amounts reported as the original budget amounts reflect the first appropriation for that fund covered the entire fiscal year, including amounts automatically carried over from prior year. The amounts reported as the final budgeted amounts represent the final appropriation amounts passed by the Board during the year.

Lapsing of Appropriations:
At the close of each fiscal year, the unencumbered balance of each appropriation reverts to the respective fund from which it was appropriated and becomes subject to future appropriation. Encumbered appropriations are carried forward to the succeeding fiscal year and are not reappropriated.

F. Cash and Investments

To improve cash management, cash received by the District is pooled in a central bank account. Monies for all funds are maintained in this pool. Individual fund integrity is maintained through the District’s records. Each fund’s interest in the pool is presented as “equity in pooled cash and investments” on the basic financial statements.

During fiscal year 2023, investments were limited to Federal Home Loan Bank (FHLB) securities, Federal National MortgageAssociation (FNMA) securities, Federal Home LoanMortgageCorporation (FHLMC) securities, Federal Farm Credit Bank (FFCB) securities, negotiable certificates of deposit, U.S. Treasury notes, municipal bonds, commercial paper, U.S. Government money market mutual funds, and investment in the State Treasury Asset Reserve ofOhio (STAR Ohio). Except for investments in STAROhio, investments are reported at fair value, which is based on quoted market prices.

32

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2023

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (Continued)

The District invested in STAR Ohio. STAR Ohio (the State Treasury Asset Reserve of Ohio), is an investment pool managed by the State Treasurer’s Office which allows governments within the State to pool their funds for investment purposes. STAR Ohio is not registered with the SEC as an investment company, but has adopted Governmental Accounting Standards Board (GASB), Statement No. 79, “Certain External Investment Pools and Pool Participants.” The District measures their investment in STAR Ohio at the net asset value (NAV) per share provided by STAR Ohio. The NAV per share is calculated on an amortized cost basis that provides an NAV per share that approximates fair value.

There were no limitations or restrictions on any participant withdrawals due to redemption notice periods, liquidity fees, or redemption gates. However, 24 hours notice in advance of all deposits and withdrawals exceeding $100 million is encouraged. STAR Ohio reserves the right to limit the transaction to $250 million, requiring the excess amount to be transacted the following business day(s), but only to the $250 million limit. All accounts of the participant will be combined for these purposes.

Under existing Ohio statutes all investment earnings are assigned to the general fund unless statutorily required to be credited to a specific fund. The Board of Education has,by resolution, specified the funds to receive an allocation of interest earnings. Interest revenue credited to the general fund during fiscal year 2023 amounted to $410,664, which includes $84,239 assigned from other District funds.

For presentation on the basic financial statements, investments of the cash management pool and investments with original maturities of three months or less at the time they are purchased by the District are considered cash equivalents. Investments with an initial maturity of more than three months are reported as investments. An analysis of the District’s investment account at fiscal year-end is provided in Note 4.

G. Inventory

On government-wide and fund financial statements, purchased inventories are presented at the lower of cost or market and donated commodities are presented at their entitlement value. Inventories are recorded on a first-in, first-out basis and are expensed when used. Inventories are accounted for using the consumption method.

On the fund financial statements, reported material and supplies inventory is equally offset by nonspendable fund balance in the governmental funds which indicates that it does not constitute available spendable resources even though it is a component of net current assets. Inventory consists of expendable supplies held for consumption, donated food and purchased food. At June 30, 2023, the District had no material consumable inventory.

H. Capital Assets

General capital assets are those assets specifically related to governmental activities. These assets result from expenditures in the governmental funds. These assets are reported in the governmental activities column of the government-wide statement of net position, but are not reported in the fund financial statements.

All capital assets are capitalized at cost (or estimated historical cost) and updated for additions and retirements during the year. Donated capital assets are recorded at their acquisition values as of the date received. The District follows the policy of not capitalizing assets with a cost of less than $5,000 and a useful life of less than one year. During fiscal year 2023, the District increased its capitalization threshold from $2,500 to $5,000. The District does not possess any infrastructure. Improvements are capitalized; the costs of normal maintenance and repairs that do not add to the value of the asset or materially extend an asset’s life are not.

33

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2023

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (Continued)

All reported capital assets except land and construction in progress are depreciated/amortized. Improvements are depreciated over the remaining useful lives of the related capital assets. Depreciation/amortization is computed using the straight-line method over the following useful lives:

	Description	

Land improvements Buildings and improvements Furniture and equipment Vehicles
Intangible right to use: Lease assets Compute software

Governmental Activities
 Estimated Lives 

10 - 30 years 20 - 40 years 5 - 20 years 5 - 15 years

5 years 3 years

The District is reporting intangible right to use assets related to lease equipment and computer software. The intangible assets are being amortized in a systematic and rational manner over the shorter of the lease term or the useful life of the underlying asset.

I.	Compensated Absences

Compensated absences of the District consist of vacation leave and sick leave liability to the extent that payments to the employee for these absences are attributable to services already rendered and are not contingent on a specific event that is outside the control of the District and the employee.

In accordance with the provisions of GASB Statement No. 16, “Accounting for Compensated Absences”, a liability for vacation leave is accrued if a) the employees’ rights to payment are attributable to services already rendered; and b) it is probable that the employer will compensate the employees for the benefits through paid time off or other means, such as cash payment at termination or retirement. An accrual for earned sick leave is made to the extent that it is probable that the benefits will result in termination (severance) payments. A liability for sick leave is accrued using the vesting method; i.e., the liability is based on the sick leave accumulated at June 30, 2023, by those employees who are currently eligible to receive termination (severance) payments, as well as those employees expected to become eligible in the future. For purposes of establishing a liability for sick leave on employees expected to become eligible to retire in the future, all employees over the age of fifty with at least ten years of service or any age with at least twenty years of service were considered expected to become eligible to retire in accordance with GASB Statement No. 16.

The total liability for vacation and sick leave payments has been calculated using pay rates in effect at June 30, 2023, and reduced to the maximum payment allowed by labor contract and/or statute, plus any applicable additional salary related payments.

The entire compensated absence liability is reported on the government-wide financial statements.

For governmental fund financial statements, the current portion of unpaid compensated absences is the amount expected to bepaid using expendable available resources. These amounts are recordedin the account “compensated absences payable” in the fund from which the employees who have accumulated unpaid leave are paid. The noncurrent portion of the liability is not reported.

34

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2023

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (Continued)

J.	Interfund Balances

On fund financial statements, receivables and payables resulting from short-term interfund loans are classified as “interfund loans receivable/payable”. These amounts are eliminated in the governmental type activities columns of the statement of net position.

K. Accrued Liabilities and Long-Term Obligations

All payables, accrued liabilities and long-term obligations are reportedinthe government-wide financial statements.

In general, governmental fund payables and accrued liabilities that, once incurred, are paid in a timely manner and in full from current financial resources are reported as obligations of the funds. However, compensated absences that will be paid from governmental funds are reported as a liability in the fund financial statements only to the extent that they are due for payment during the current year. Long-term bonds and lease-purchase agreements are recognized as a liability on the fund financial statements when due. Net pension/OPEB liability should be recognized in the governmental funds to the extent thatbenefit payments are due and payable and the pension/OPEB plan’s fiduciary net position is not sufficient for payment of those benefits.

L. Unamortized Bond Premiums and Discounts/Accounting Gain or Loss

Bond premiums and discounts are amortized over the term of the bonds using the straight-line method. Bond premiums are presented as an addition to the face amount of the bonds. Bond discounts are presented as a reduction to the face amount of the bonds.

For advance refunding resulting in the defeasance of debt, the difference between the reacquisition price and the net carrying amount of the old debt is deferred and amortized as a component of interest expense. This accounting gain or loss is amortized over the remaining life of the old debt or the life of the new debt, whichever is shorter, and is presented as a deferred outflow of resources.

On the governmental fund financial statements, issuance costs, bond premiums, bond discounts, and deferred charges from refunding are recognized in the current period. The reconciliation between the bonds face value and the amount reported on the statement of net position is presented in Note 11.

M. Fund Balance

Fund balance is divided into five classifications based primarily on the extent to which the District is bound to observe constraints imposed upon the use of the resources in the governmental funds. The classifications follow:

Nonspendable - The nonspendable fund balance classification includes amounts that cannot be spent because they are not inspendable form or legallyrequired to be maintained intact. The “not in spendable form” criterion includes items that are not expected to be converted to cash. It also includes the long-term amount of loans receivable.

Restricted - Fund balance is reported as restricted when constraints are placed on the use of resources that are either externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments, or imposed by law through constitutional provisions or enabling legislation.

35

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2023

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (Continued)

Committed - The committed fund balance classification includes amounts that can be used only for the specific purposes imposed by a formal action (resolution) of the District Board of Education (the highest level of decision making authority). Those committed amounts cannot be used for any other purpose unless the District Board of Education removes or changes the specified use by taking the same type of action (resolution) it employed to previously commit those amounts. Committed fund balance also incorporates contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements.

Assigned - Amounts in the assigned fund balance classification are intended to be used by the District for specific purposes, but do not meet the criteria to be classified as restricted nor committed. In governmental funds other than the general fund, assigned fund balance represents the remaining amount that is not restricted or committed. In the general fund, assigned amounts represent intended uses established by policies of the District Board of Education, which includes giving the Treasurer the authority to constrain monies for intended purposes.

Unassigned - Unassigned fund balance is the residual classification for the general fund and includes all spendable amounts not contained in the other classifications. In other governmental funds, the unassigned classification is only used to report a deficit fund balance resulting from overspending for specific purposes for which amounts had been restricted, committed, or assigned.

The District applies restricted resources first when expenditures are incurred for purposes for which restricted and unrestricted (committed, assigned, and unassigned) fund balance is available. Similarly, within unrestricted fund balance, committed amounts are reduced first followed by assigned, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used.

N. Net Position

Net position represents the difference between assets and deferred outflows and liabilities and deferred inflows. The net position component “net investment in capital assets,” consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowing used for the acquisition, construction or improvement of those assets. Deferred outflows of resources and deferred inflows of resources that are attributable to the acquisition, construction or improvement of those assets or related debt also should be included in this component of net position. Net position is reported as restricted when there are limitations imposed on its use either through the enabling legislation adopted by the District or through external restrictions imposed by creditors, grantors or laws or regulations of other governments.

The District applies restricted resources first when an expense is incurred for purposes for which both restricted and unrestricted net position is available.

O. Prepayments

Certain payments to vendors reflect the costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. These items are reported as assets on the balance sheet using the consumption method. A current asset for the prepaid amounts is recorded at the time of the purchase and the expenditure/expense is reported in the year in which services are consumed.

At fiscal year-end, because prepayments are not available to finance future governmental fund expenditures, the fund balance is considered nonspendable in an amount equal to the carrying value of the asset on the fund financial statements.

36

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2023

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (Continued)

P. Estimates

The preparation of the basic financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the basic financial statements and accompanying notes. Actual results may differ from those estimates.

Q. Budget Stabilization Arrangement

The District has established a budget stabilization reserve in accordance with authority established by State law. Additions to the budget stabilization reserve can only be made by formal resolution of the Board of Education. Expenditures out of the budget stabilization reserve can only be made to offset future budget deficits. At June 30, 2023, the balance in the budget stabilization reserve was $97,976. This amount is included in unassigned fund balance of the general fund and in unrestricted net position on the statement of net position.

R. Interfund Activity

Exchange transactions between funds are reported as revenues in the seller funds and as expenditures/expenses in the purchaser funds. Flows of cash or goods from one fund to another without a requirement for repayment are reported as interfund transfers. Interfund transfers are reported as other financing sources/uses in governmental funds. Repayments from funds responsible for particular expenditures/expenses to the funds that initially paid for them are not presented on the basic financial statements. Interfund activity between governmental funds is eliminated in the statement of activities.

S. Pensions/Other Postemployment Benefits (OPEB)

For purposes of measuring the net pension/OPEB liability, net OPEB asset, deferred outflows of resources and deferred inflows of resources related pensions/OPEB, and pension/OPEB expense, information about the fiduciary net position of the pension/OPEB plans and additions to/deductions from their fiduciary net position have been determined on the same basis as they are reported by the pension/OPEB plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. The pension/OPEB plans report investments at fair value.

T. Parochial Schools

Within the District boundaries, All Saints, St. Vincent Ferrer, Springs East Montessori, Cincinnati Country Day, and Yavneh Day schools operate as parochial schools. Current State legislation provides funding to these schools. These monies are received and disbursed on behalf of the schools by the Treasurer of the District, as directed by the school. The receipt and expenditure of these State monies by the District are reflected in a nonmajor governmental fund for financial reporting purposes because the District has administrative involvement in the disbursement of the monies.

U. Extraordinary and Special Items

Extraordinary items are transactions or events that are both unusual in nature and infrequent in occurrence. Special items are transactions or events that are within the control of the Board of Education and that are either unusual in nature or infrequent in occurrence. Neither type of transaction occurred during fiscal year 2023.

37

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2023

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (Continued)

V. Fair Value Measurements

The District categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs.

NOTE 3 - ACCOUNTABILITY AND COMPLIANCE

A. Change in Accounting Principles

For fiscal year 2023, the District has implemented GASB Statement No. 91, “Conduit Debt Obligations”, GASB Statement No. 94, “Public-Private and Public-Public Partnerships and Availability Payment Arrangements”, GASB Statement No. 96, “Subscription Based Information Technology Arrangements”, certain questions and answers of GASB Implementation Guide 2021-1 and certain paragraphs of GASB Statement No. 99, “Omnibus 2022”.

GASB Statement No. 91 provides a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extendedby issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This Statement achieves those objectives by clarifying the existing definition of a conduit debt obligation; establishing that a conduit debt obligation is not a liability of the issuer; establishing standards for accounting and financial reporting of additional commitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obligations; and improving required note disclosures. The implementation of GASB Statement No. 91 did not have an effect on the financial statements of the District.

GASB Statement No. 94 is to improve financial reporting by addressing issues related to public-private and public partnership arrangements (PPPs). As used in this Statement, a PPP is an arrangement in which a government (the transferor) contracts with an operator (a governmental or nongovernmental entity) to provide public services by conveying control of the right to operate or use a nonfinancial asset, such as infrastructure or other capital asset (the underlying PPP asset), for a period of time in an exchange or exchange-like transaction. The implementation of GASB Statement No. 94 did not have an effect on the financial statements of the District.

GASB Statement No. 96 provides guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset—an intangible asset— and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. To the extent relevant, the standards for SBITAs are based on the standards established in Statement No. 87, Leases, as amended.

These changes were incorporated in the District’s fiscal year 2023 financial statements. The implementation of GASB Statement No. 96 did not have an effect on fund balance or net position as previously reported at June 30, 2022.

GASB Implementation Guide 2021-1 provides clarification on issues related to previously established GASB guidance. The implementation of GASB Implementation Guide 2021-1 did not have an effect on the financial statements of the District.

38

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2023

NOTE 3 - ACCOUNTABILITY AND COMPLIANCE - (Continued)

GASB Statement No. 99 to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing (1) practice issues that have been identified during implementation and application of certainGASB Statements and (2) accounting and financial reporting for financial guarantees. The implementation of GASB Statement No. 99 did not have an effect on the financial statements of the District.

B. Deficit Fund Balances

Fund balances at June 30, 2023 included the following individual fund deficits:

Nonmajor funds	Deficit

Elementary and Secondary School

Emergency Relief (ESSER) Fund                         $ 2,501 Title III - Limited English Proficiency                         1,578

$ 4,079

The general fund is liable for any deficit in these funds and provides transfers when cash is required, not when accruals occur. The deficit fund balances resulted from adjustments for accrued liabilities.

NOTE 4 - DEPOSITS AND INVESTMENTS

State statutes classify monies held by the District into three categories.

Active deposits are public deposits necessary to meet current demands on the treasury. Such monies must be maintained either as cash in the District treasury, in commercial accounts payable or withdrawable on demand, including negotiable order of withdrawal (NOW) accounts, or in money market deposit accounts.

Inactive deposits are public deposits that the Board of Education has identified as not required for use within the current five-year period of designation of depositories. Inactive deposits must either be evidenced by certificates of deposit maturing not later than the end of the current period of designation of depositories, or by savings or deposit accounts including, but not limited to, passbook accounts.

Interim deposits are deposits of interim monies. Interim monies are those monies which are not needed for immediate use, but which will be needed before the end of the current period of designation of depositories.

Interim deposits must be evidenced by time certificates of deposit maturing not more than one year from the date of deposit or by savings or deposit accounts including passbook accounts.

Interim monies may be deposited or invested in the following securities:

1.	 United States Treasury Notes, Bills, Bonds, or any other obligation or security issued by the United States Treasury or any other obligation guaranteed as to principal and interest by the United States;

2.	Bonds, notes, debentures, or any other obligations or securities issued by any federal government agency or instrumentality, including, but not limited to, the Federal National Mortgage Association, Federal Home Loan Bank, Federal Farm Credit Bank, Federal Home Loan Mortgage Corporation, and Government National Mortgage Association.	All federal agency securities shall be direct issuances of federal government agencies or instrumentalities;

39

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2023

NOTE 4 - DEPOSITS AND INVESTMENTS - (Continued)

3.	Written repurchase agreements in the securities listed above provided that the market value of the securities subject to the repurchase agreement must exceed the principal value of the agreement by at least two percent and be marked to market daily, and that the term of the agreement must not exceed thirty days;

4.	Bonds and other obligations of the State of Ohio, and with certain limitations including a requirement for maturity within ten years from the date of settlement, bonds and other obligations of political subdivisions of the State of Ohio, if training requirements have been met;

5.	Time certificates of deposit or savings or deposit accounts including, but not limited to, passbook accounts;

6.	No-load money market mutual funds consisting exclusively of obligations described in division (1) or (2) and repurchase agreements secured by such obligations, provided that investments in securities described in this division are made only through eligible institutions;

7.	The State Treasurer's investment pool, the State Treasury Asset Reserve of Ohio (STAR Ohio); and,

8.	Certain bankers’ acceptances for a period not to exceed one hundred eighty days) and commercial paper notes (for a period not to exceed two hundred seventy days) in an amount not to exceed 40 percent of the interim monies available for investment at any one time if training requirements have been met.

Protection of the deposits is provided by the Federal Deposit Insurance Corporation (FDIC), by eligible securities pledged by the financial institution as security for repayment, or by the financial institutions participation in the Ohio Pooled Collateral System (OPCS), a collateral pool of eligible securities deposited with a qualified trustee and pledged to the Treasurer of State to secure the repayment of all public monies deposited in the financial institution.

Investments in stripped principal or interest obligations, reverse repurchase agreements and derivatives are prohibited. The issuance of taxable notes for the purpose of arbitrage, the use of leverage and short selling are also prohibited. Except as noted above, an investment must mature within five years from the date of purchase unless matched to a specific obligation or debt of the District, and must be purchased with the expectation that it will be held to maturity. Investments may only be made through specified dealers and institutions. Payment for investments may be made only upon delivery of the securities representing the investments to the Treasurer or, if the securities are not represented by a certificate, upon receipt of confirmation of transfer from the custodian.

A. Cash with Escrow Agent

At June 30, 2023, the District had $561,699 held by TMI Trust Company as escrow agent related to the lease-purchase obligation entered into during fiscal year 2021 (see Note 10). The escrow agent maintains these funds in a U.S. government money market mutual fund. This amount is not included in “Investments” below.

B. Cash in Segregated Accounts

At June 30, 2023, the District has $41,863 in separate depository accounts for a flexible spending account (FSA), fundraising, scholarship, and miscellaneous funds held separate from the District’s internal investment pool. The balance of these depository accounts are included in “deposits with financial institutions” below.

40

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2023

NOTE 4 - DEPOSITS AND INVESTMENTS - (Continued)

C. Deposits with Financial Institutions

At June 30, 2023, the carrying amount of all District deposits was $2,992,562. Based on the criteria described in GASB Statement No. 40, “Deposits and Investment Risk Disclosures”, as of June 30, 2023, $757,707 of the District’s bank balance of $3,134,028 was collateralized by the OPCS while $2,376,321 was covered by FDIC.

Custodial credit risk is the risk that, in the event of bank failure, the District will not be able to recover deposits or collateral securities that are in the possession of an outside party. The District has no deposit policy for custodial credit risk beyond the requirements of State statute. Ohio law requires that deposits either be insured or protected by (1) eligible securities pledged to the District and deposited with a qualified trustee by the financial institution as security for repayment whose fair value at all times shall be at least 105 percent of the deposits being secured, or (2) participation in the Ohio Pooled Collateral System (OPCS), a collateral pool of eligible securities deposited with a qualified trustee and pledged to the Treasurer of State to secure the repayment of all public monies deposited in the financial institution. OPCS requires the total fair value of the securities pledged to be 102 percent of the deposits being secured or a rate set by the Treasurer of State. For 2023, the District’s financial institutions were approved for a collateral rate of 102 percent through the OPCS. Although all statutory requirements for the deposit of money had been followed, noncompliance with Federal requirements could potentially subject the District to a successful claim by the FDIC.

D. Investments

As of June 30, 2023, the District had the following investments and maturities:

Investment Maturities

Measurement/ Investment type:
Fair Value:

Measurement

	Value	

6 months or	7 to 12

	less	           months 

13 to 18	19 to 24

 months 	 months 

Greater than

 24 months 

FHLB FNMA FHLMC FFCB
U.S. Treasury Notes Negotiable CDs Commerical paper Municipal bonds
U.S. government money market mutual funds
Amortized Cost: STAR Ohio

Total

$       5,307,640 3,158,302 545,678 689,657 8,853,353 4,146,229 15,356,794 334,487

296,668

17,082,798

$     55,771,606

$	3,562,409 $ -
-494,615
3,952,786 1,978,001 13,819,334 -

296,668

17,082,798

$ 41,186,611 $

141,477 $ 491,145
--
1,003,184 1,115,111 1,537,460 101,487

-

-

4,389,864 $

131,783 1,444,395 -
-188,110 567,688 -233,000

-

-

2,564,976

$	716,269 $ 474,085
--
192,382 245,418 -
-

-

-

$ 1,628,154 $

775,702 748,677 545,678 195,042 3,516,891 240,011
--

-

-

6,022,001

The weighted average maturity of investments is 0.62 years.

The District’s investment in the U.S. Government money market mutual fund is valued using quoted market prices in active markets (Level 1 inputs). The District's investments in federal agency securities (FHLB, FNMA, FHLMC, FFCB), negotiable certificates of deposit, U.S. Treasury notes, municipal bonds, and commercial paper are valued using quoted prices in markets that are not considered to be active, dealer quotations or alternative pricing sources for similar assets or liabilities for which all significant inputs are observable, either directly or indirectly (Level 2 inputs).

41

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2023

NOTE 4 - DEPOSITS AND INVESTMENTS - (Continued)

Interest Rate Risk: Interest rate risk arises because potential purchasers of debt securities will not agree to pay face value for those securities if interest rates subsequently increase. The Ohio Revised Code generally limits security purchases to those that mature within five years of the settlement date. The District’s investment policy addresses interest rate risk by requiring the consideration of cash flow requirements and market conditions in determining the term of an investment, and limiting investment portfolio maturities to five years or less.

Credit Risk: The federal agency securities and U.S. Treasury notes were rated AA+/AAA and Aaa by Standard & Poor’s and Moody’s Investor Services, respectively. Commercial paper investments were rated A-1 and A-1+ by Standard & Poor’s and P-1 by Moody’s Investor Services. The municipal bonds were rated AA and AAA by Standard & Poor’s and Aa2 and Aaa by Moody’s Investor Services. Standard & Poor’s has assigned STAR Ohio and the U.S. Government money market mutual fund an AAAm money market rating. Ohio Law requires that STAR Ohio maintain the highest rating provided by at least one nationally recognized standard rating service. The District has no investment policy dealing with credit risk.

Custodial Credit Risk: For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the District will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The federal agency securities, municipal bonds, and the U.S. Treasury notes are exposed to custodial credit risk in that they are uninsured, unregistered and held by the counterparty’s trust department or agent, but not in the District’s name. The District has no investment policy dealing with investment custodial risk beyond the requirement in State statute that prohibits payment for investments prior to the delivery of the securities representing such investments to the Treasurer or qualified trustee.

Concentration of Credit Risk: The District’s investment policy addresses concentration of credit risk by requiring investments to be diversified in order to reduce the risk of loss resulting from the over concentration of assets in a specific type of security, the erosion of fair value, or by default. However, the District’s investment policy does not place any limit on the amount that may be invested in any one issuer.

The following table includes the percentage of each investment type held at June 30, 2023:

Measurement/ Investment type:

Fair Value:

Measurement

Value	% of Total

FHLB FNMA FHLMC FFCB
U.S. Treasury Notes Negotiable CDs Commerical paper Municipal bonds
U.S. government money market mutual funds
Amortized Cost: STAR Ohio

Total

$      5,307,640                         9.52 3,158,302                         5.66 545,678                         0.98 689,657                         1.24 8,853,353                       15.87 4,146,229                         7.43 15,356,794                       27.54 334,487                         0.60

296,668	0.53

17,082,798	30.63

$ 55,771,606	100.00

42

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2023

NOTE 4 - DEPOSITS AND INVESTMENTS - (Continued)

E. Reconciliation of Cash and Investments to the Statement of Net Position

The following is a reconciliation of cash and investments as reported in the note disclosure above to cash and investments as reported on the statement of net position as of June 30, 2023:

Cash and investments per note disclosure Carrying amount of deposits
Cash with escrow agent Investments

Total

Cash and investments per statement of net position

Governmental activities

$            2,992,562 561,699 55,771,606

$	59,325,867

$	59,325,867

NOTE 5 - PROPERTY TAXES

Property taxes are levied and assessed on a calendar year basis while the District fiscal year runs from July through June. First half tax collections are received by the District in the second half of the fiscal year. Second half tax distributions occur in the first half of the following fiscal year.

Property taxes include amounts levied against all real property and public utility property. Real property tax revenues received in calendar year 2023 represent the collection of calendar year 2022 taxes. Real property taxes received in calendar year 2023 were levied after April 1, 2022, on the assessed values as of January 1, 2022, the lien date. Assessed values for real property taxes are established by State statute at 35 percent of appraised fair value. Real property taxes are payable annually or semiannually. If paid annually, payment is due December 31; if paid semiannually, the first payment is due December 31, with the remainder payable by June 20. Under certain circumstances, State statute permits alternate payment dates to be established. Public utility property tax revenues received in calendar year 2023 represent the collection of calendar year 2022 taxes. Public utility real and personal property taxes received in calendar year 2023 became a lien on December 31, 2021, were levied after April 1, 2022, and are collected with real property taxes. Public utility real property is assessed at 35 percent of true value; public utility tangible personal property is currently assessed at varying percentages of true value.

The District receives property taxes from Hamilton County. The County Auditor periodically advances to the District its portion of the taxes collected. Second-half real property tax payments collected by the County by June 30, 2023, are available to finance fiscal year 2023 operations. The amount available as an advance at June 30, 2023 was $11,640,000 in the general fund and $2,175,000 in the bond retirement fund. This amount is recorded as revenue. The amount available for advance at June 30, 2022 was $11,855,000 in the general fund and $2,230,000 in the bond retirement fund. The amount of second-half real property taxes available for advance at fiscal year-end can vary based on the date the tax bills are sent.

Accrued property taxes receivable includes real property, public utility property and delinquent tangible personal property taxes which are measurable as of June 30, 2023 and for which there is an enforceable legal claim. Although total property tax collections for the next fiscal year are measurable, only the amount of real property taxes available as an advance at June 30 was levied to finance current fiscal year operations and is reported as revenue at fiscal year end. The portion of the receivable not levied to finance current fiscal year operations is offset by a credit to deferred inflows of resources.

On the accrual basis of accounting, collectible delinquent property taxes have been recorded as a receivable and revenue, while on a modified accrual basis of accounting the revenue has been reported as a deferred inflow of resources.

43

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2023

NOTE 5 - PROPERTY TAXES - (Continued)

The assessed values upon which the fiscal year 2023 taxes were collected are:

2022 Second

Half Collections

2023 First

Half Collections

	Amount	       Percent	       Amount	          Percent

Agricultural/residential

and other real estate Public utility personal

Total

$     1,363,512,020        98.74 17,345,760          1.26

$     1,380,857,780	100.00

$        1,378,845,510          98.73 17,780,340            1.27

$	1,396,625,850	100.00

Tax rate per $1,000 of assessed valuation for:

General operations                                                    $ 45.38                                                  $ 45.38 Bond retirement                                                              4.15                                                         4.15

NOTE 6 - PAYMENT IN LIEU OF TAXES

In accordance with State law, Sycamore Township (the “Township”) has entered into tax increment financing (TIF) agreements. Under these agreements, the Township redirects, but does not abate, payments in lieu of taxes (PILOT) received on the incremental increase in the value of the property to help finance infrastructure improvements. The property owners’ contractual promise to make these PILOT payments generally continues until the costs of the improvement have been paid or the agreement expires, whichever occurs first. Future development by those owners or others may result in subsequent agreements to make PILOT payments. The Township has agreed to compensate the District with a portion of the collected PILOT, which amounted to $6,338,262 during fiscal year 2023.

NOTE 7 - RECEIVABLES

Receivables at June 30, 2023 consisted of taxes, payments in lieu of taxes, accounts, accrued interest, and intergovernmental grants and entitlements. All receivables are considered collectible in full due to the ability to foreclose for the nonpayment of taxes, the stable condition of State programs, and the current year guarantee of Federal funds.

A summary of the principal items of receivables reported on the statement of net position follows:

Governmental activities:

Property taxes

Payments in lieu of taxes Accounts
Accrued interest Intergovernmental

Total

$ 37,144,447 6,345,080 26,726 75,427 22,368

$ 43,614,048

Receivables have been disaggregated on the face of the basic financial statements. All receivables are expected to be collected within the subsequent year.

44

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2023

NOTE 8 - OTHER COMMITMENTS

The District utilizes encumbrance accounting as part of its budgetary controls. Encumbrances outstanding at year end may be reported as part of restricted, committed, or assigned classifications of fund balance. At year end, the District’s commitments for encumbrances in the governmental funds, excluding amounts already reported in payables, were as follows:

 Year-End 

Fund

General fund	$     1,022,499

Building fund

Nonmajor governmental funds

Total

31,990,272 360,292

$ 33,373,063

NOTE 9 - CAPITAL ASSETS

Capital asset activity for the fiscal year ended June 30, 2023, was as follows:

Governmental activities:

Capital assets, not being depreciated/amortized:

Balance

     06/30/22 	 Additions 	 Deductions 

Balance

     06/30/23     

Land

Construction in progress

Total capital assets, not being depreciated/amortized

$          501,523 15,204,970

15,706,493

$                      -     $ 48,095,164

48,095,164

-     $            501,523 -             63,300,134

-	63,801,657

Capital assets, being depreciated/amortized: Intangible right-to-use:
Lease equipment Computer software
Land improvements Buildings and improvements Equipment and furniture Vehicles

Total capital assets, being depreciated/amortized

Less: accumulated depreciation/amortization:

Intangible right-to-use: Lease equipment Computer software
Land improvements Buildings and improvements Equipment and furniture Vehicles
Total accumulated depreciation/amortization

149,526 -
6,031,930 72,030,393 8,704,272 4,093,697

91,009,818

(26,601) -
(3,694,504) (34,267,424) (8,362,005) (2,142,926)
(48,493,460)

-9,823 -
-19,792 -

29,615

(26,601) (6,548) (222,681) (1,641,580) (97,496) (231,023)
(2,225,929)

--
(37,026) (19,765) (1,214,437) (22,825)

(1,294,053)

37,026 19,765 1,173,223 22,825
1,252,839

149,526 9,823 5,994,904 72,010,628 7,509,627 4,070,872

89,745,380

(53,202) (6,548) (3,880,159) (35,889,239) (7,286,278) (2,351,124)
(49,466,550)

Total capital assets, net	$     58,222,851	$     45,898,850	$	(41,214) $	104,080,487

45

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2023

NOTE 9 - CAPITAL ASSETS - (Continued)

Depreciation/amortization expense was charged to governmental functions as follows:

Instruction: Regular Special Vocational

Support services: Pupil Instructional staff Administration
Operations and maintenance Pupil Transportation

Operation of non-instructional services: Food service operations
Other non-instructional services

Extracurricular activities

Total depreciation/amortization expense

$	902,152 73,694 14,673

37,754 168,585 68,000 254,182 448,041

130,908 2,007

125,933

$ 2,225,929

NOTE 10 - FINANCED PURCHASE NOTES PAYABLE

The District has entered into the following arrangements for the financed purchase of capital assets:

During fiscal year 2021, the District entered into a financed purchase agreement with Santander Bank for $473,858 to finance the acquisition of five school buses. The source of revenue to fund the principal and interest payments is derived from general operating revenues of the District.

On December 10, 2020, the District entered into a financed purchase agreement with Capital One Public Funding, LLC to finance energy improvements to District facilities. The total amount of the financed purchase note payable agreement is $3,700,000. The financed purchase note payable agreement bears an interest rate of 1.660% with the final payment due December 1, 2032. In conjunction with the financed purchase note payable agreement, the District entered into an Escrow Agreement with TMI Trust Company (TMI) on December 10, 2020. The proceeds of the financed purchase note payable agreement were deposited with TMI and construction costs are paid by the escrow agent. At June 30, 2023, the balance of the monies held by TMI as escrow agent was $561,699. The source of revenue to fund the principal and interest payments is derived from general operating revenues of the District.

On October 26, 2022, the District entered into a financed purchase agreement with Webster Bank to finance various improvements to District facilities. The total amount of the financed purchase note payable agreement is $10,000,000. The financed purchase note payable agreement bears an interest rate of 3.25% with the final payment due December 1, 2042. The District incurred issuance costs of $120,000 related to the issuance of the financed purchase note payable. The financed purchase note payable and related issuance costs have been reported in the building fund. The source of revenue to fund the principal and interest payments is derived from general operating revenues of the District.

46

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2023

NOTE 10 – FINANCED PURCHASE NOTES PAYABLE - (Continued)

Financed purchase notes payable payments are reported as function expenditures on a budgetary basis. However, on a GAAP basis, these payments have been reclassified and are reported as debt service expenditures in the general fund. During fiscal year 2023, the District made principal and interest payments of $379,945 and $285,679, respectively, on the agreements. A liability in the amount of the present value of minimum lease payments has been recorded on the statement of net position. Capital assets consisting of vehicles and construction in progress have been capitalized in the amount of $473,858 and $3,154,399, respectively.

Principal and interest requirements to retire the financed purchase notes payable outstanding at June 30, 2023 are as follows:

Financed Purchase Notes Payable

 Fiscal Year 	 Principal 	 Interest 	     Total	

2024 2025 2026 2027 2028
2029-2033 2034-2038 2039-2043

Total

$	698,534	$ 655,000 670,000 690,000 710,000
3,875,000 2,700,000 3,235,000

$	13,233,534	$

422,547 401,404 382,778 363,599 343,776 1,395,111 867,185 312,094

4,488,494

$	1,121,081 1,056,404 1,052,778 1,053,599 1,053,776 5,270,111 3,567,185 3,547,094

$	17,722,028

NOTE 11 - LONG-TERM OBLIGATIONS

During fiscal year 2023, the following activity occurred in the governmental activities long-term obligations.

Governmental activities:

General Obligation Bonds:

Balance
     06/30/22     	 Increases 

Balance
 Decreases 	     06/30/23     

Amount Due Within
 One Year 

Series 2016 - refunding Unamortized premium
Series 2021 - school improvement Unamortized premium

Total general obligation bonds

Other Long-Term Obligations: Financed purchase notes payable Leases payable
Net pension liability Net OPEB liability Compensated absences

Total other long-term obligations

$	9,720,000     $ 770,800
71,450,000 8,303,600

90,244,400

3,613,479 126,622 23,910,273 2,730,102 2,148,279

32,528,755

-     $ -
--

-

10,000,000 -15,831,194 -
508,038

26,339,232

(1,430,000) $ (142,302)
(1,660,000) (282,275)

(3,514,577)

(379,945) (46,417)
-(762,935) (277,422)

(1,466,719)

8,290,000     $ 628,498
69,790,000 8,021,325

86,729,823

13,233,534 80,205 39,741,467 1,967,167 2,378,895

57,401,268

1,455,000 -1,725,000 -

3,180,000

698,534 45,403 -
-90,387

834,324

Total governmental activities	$ 122,773,155     $	26,339,232     $	(4,981,296) $ 144,131,091     $	4,014,324

47

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2023

NOTE 11 - LONG-TERM OBLIGATIONS - (Continued)

General Obligation Bonds
All bonds are general obligations of the District, for which its full faith and credit is pledged for repayment.

Series 2016 General Obligation Refunding Bonds
On September 14, 2016, the District issued Series 2016 General Obligation Refunding Bonds (Series 2016 Refunding Bonds) to advance refund the callable portion of the Series 2006 Refunding Bonds (principal $15,015,000; interest rate of 4.00% to 4.75%). Issuance proceeds of $15,332,019 were used to purchase securities which were placed in an irrevocable trust to provide resources for all future debt service payments on the refunded debt. This refunded debt is considered defeased (in-substance) and accordingly, has been removed from the statement of net position. The balance of the refunded bonds was $0 at June 30, 2023.

The Series 2016 Refunding Bonds are comprised of current interest bonds, par value $13,940,000. The interest rate on the current interest bonds range from 2.00% to 5.00%.

The reacquisition price exceeded the net carrying amount of the old debt (including unamortized deferred changes and unamortized premiums) by $541,394. This amount is being netted against the new debt and amortized over the remaining life of the refunded debt, which is equal to the life of the new debt issued.

Payments of principal and interest relating to the Series 2016 Refunding Bonds are recorded as expenditures in the bond retirement fund. Interest payments on the current interest bonds are due on June 1 and December 1 each year. The final maturity stated in the issue is December 1, 2027. Principal and interest requirements to retire the Series 2016 Refunding Bonds outstanding at June 30, 2023 are as follows:

	Current Interest Bonds - Series 2016	

 Fiscal Year 	 Principal 	 Interest 	     Total	

2024	$ 1,455,000 2025                   1,595,000 2026                   1,680,000 2027                   1,725,000 2028                   1,835,000

Total	$ 8,290,000

$     251,712 175,463 114,587 72,025 25,231

$	639,018

$	1,706,712 1,770,463 1,794,587 1,797,025 1,860,231

$	8,929,018

Series 2021 School Facilities Construction and Improvement Bonds
On August 12, 2021, the District issued $71,450,000 of Series 2021 School Improvement Bonds to retire the Series 2021 School Facilities Construction and Improvement Bond Anticipation Notes. This issue is comprised of general obligation serial bonds ($55,610,000) and term bonds ($15,840,000) bonds with interest rates ranging from 2.00% to 4.00%. The bonds were issued at a premium of $8,397,692. The Series 2021 School Improvement Bonds were issued for the purpose of constructing, adding to, renovating, remodeling, furnishing, equipping and otherwise improving school district buildings and facilities, and acquiring, clearing, equipping and otherwise improving school district building and facility sites and retiring the Series 2021 Outstanding Notes previously issued for such purpose.

Interest payments on the general obligation bonds are due on June 1 and December 1 each year. The final maturity stated in the issue is December 1, 2051. Payments of principal and interest relating to the Series 2021 School Improvement Bonds are recorded as expenditures in the bond retirement fund.

48

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2023

NOTE 11 - LONG-TERM OBLIGATIONS - (Continued)

The future debt service requirements for retirement of the Series 2021 School Facilities Construction and Improvement bonds follows:

	Current Interest Bonds - Series 2021	

 Fiscal Year 	 Principal 	 Interest 	     Total	

2024 2025 2026 2027 2028
2029-2033 2034-2038 2039-2043 2044-2048 2049-2053

$     1,725,000 1,910,000 1,985,000 2,065,000 2,265,000 9,435,000 11,210,000 12,420,000 13,860,000 12,915,000

$	2,180,631 2,107,931 2,030,032 1,949,032 1,862,431 8,172,155 6,457,955 5,248,197 3,733,707 1,058,500

$        3,905,631 4,017,931 4,015,032 4,014,032 4,127,431 17,607,155 17,667,955 17,668,197 17,593,707 13,973,500

Total	$ 69,790,000	$ 34,800,571	$ 104,590,571

Leases payable
The District has entered into lease agreements for the right-to-uselease equipment. In accordance with GASBStatement No. 87, the District will report an intangible capital asset and corresponding liability for the future scheduled payments under the leases. The lease payments will be paid from the general fund.

The District has entered into the following lease agreements for the right-to-use equipment:

Purpose

Copiers Printers

Lease	Lease Commencement                                              End
	Date	      	Years	       	Date	

2022                            3                        2025 2019                            5                        2024

Payment

 Method 

Monthly Monthly

The following is a schedule of future lease payments under the lease agreements:

 Fiscal Year       Principal 	 Interest 	      Total	

2024	$	45,403     $ 2025                        34,802

Total	$	80,205     $

1,748     $           47,151 478                 35,280

2,226     $	82,431

Financed Purchase Notes Payable
The financed purchase notes payable is being repaid from the general fund. See Note 10 for more detail on the District’s financed purchases agreements.

Net Pension Liability
More information on the District’s net pension liability information can be found in Note 13. The District pays obligations related to employee compensation from the fund benefitting from their service.

49

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2023

NOTE 11 - LONG-TERM OBLIGATIONS - (Continued)

Net OPEB Liability/Asset
More information on the District’s net OPEB liability information canbefound inNote 14. The District paysobligations related to employee compensation from the fund benefitting from their service.

Compensated Absences
Compensated absences will be paid out of the fund from which the employee is paid, primarily the general fund.

Legal Debt Margins
The Ohio Revised Code provides that voted net general obligation debt of the District shall never exceed 9% of the total assessed valuation of the District. The Code further provides that unvoted indebtedness shall not exceed 1/10 of 1% of the property valuation of the District. The Code additionally states that unvoted indebtedness related to energy conservation debt shall not exceed 9/10 of 1% of the property valuation of the District. The assessed valuation used in determining the District’s legal debt margin has been modified by House Bill 530 which became effective March 30, 2006. In accordance with House Bill 530, the assessed valuation used in the District’s legal debt margin calculation excluded tangible personal property used in business, telephone or telegraph property, interexchange telecommunications company property, and personal property owned or leased by a railroad company and used in railroad operations. The effects of these debt limitations at June 30, 2023, are a voted debt margin of $54,340,255 (including available funds of $6,723,928) and an unvoted debt margin of $1,396,626.

NOTE 12 - RISK MANAGEMENT

The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees and natural disasters. During the fiscal year, the District contracted with The Ohio School Plan for general liability insurance with a $11,000,000 single occurrence and a $13,000,000 aggregate. Property insurance carries a $1,000 deductible.

The bus fleet and maintenance vehicles are insured by The Ohio School Plan with a $1,000 deductible and $11,000,000 limit per occurrence.

Effective January 1, 2012, the District joined the Southwest Ohio Organization of School Health (SWOOSH), a public entity risk pool, to provide medical, prescription drugs, vision, dental, life and/or other group insurance (see Note 2.A for detail). Each member district retains its own plan, but the overall health insurance plan is self-funded. All other insurance benefit offerings remain on a fully insured basis.

Post-retirement health care is provided to plan participants or their beneficiaries through the respective retirement systems discussed in Note 14. As such, no funding provisions are required by the District.

NOTE 13 - DEFINED BENEFIT PENSION PLANS

The Statewide retirement systems provide both pension benefits and other postemployment benefits (OPEB).

Net Pension Liability/Net OPEB Liability/Asset

The net pension liability and the net OPEB liability/asset reported on the statement of net position represents a liability or asset to employees for pensions and OPEB, respectively.

50

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2023

NOTE 13 - DEFINED BENEFIT PENSION PLANS - (Continued)

Pensions and OPEB are a component of exchange transactions–between an employer and its employees–of salaries and benefits for employee services. Pensions/OPEB are provided to an employee–on a deferred-payment basis–as part of the total compensation package offered by an employer for employee services each financial period. The obligation to sacrifice resources for pensions is a present obligation because it was created as a result of employment exchanges that already have occurred.

The net pension/OPEB liability (asset) represent the District’s proportionate share of each pension/OPEB plan’s collective actuarial present value of projected benefit payments attributable to past periods of service, net of each pension/OPEB plan’s fiduciary net position. The net pension/OPEB liability (asset) calculation is dependent on critical long-term variables, including estimated average life expectancies, earnings on investments, cost of living adjustments and others. While these estimates use the best information available, unknowable future events require adjusting these estimates annually.

The Ohio Revised Code limits the District’s obligation for this liability to annually required payments. The District cannot control benefit terms or the manner in which pensions/OPEB are financed; however, the District does receive the benefit of employees’ services in exchange for compensation including pension and OPEB.

GASB 68/75 assumes the liability is solely the obligation of the employer, because (1) they benefit from employee services; and (2) State statute requires funding to come from these employers. All pension contributions to date have come solely from these employers (which also includes pension costs paid in the form of withholdings from employees). The retirement systems may allocate a portion of the employer contributions to provide for these OPEB benefits. In addition, health care plan enrollees pay a portion of the health care costs in the form of a monthly premium. State statute requires the retirement systems to amortize unfunded pension liabilities within 30 years. If the pension amortization period exceeds 30 years, each retirement system’s board must propose corrective action to the State legislature. Any resulting legislative change to benefits or funding could significantly affect the net pension/OPEB liability (asset). Resulting adjustments to the net pension/OPEB liability (asset) would be effective when the changes are legally enforceable. The Ohio Revised Code permits, but does not require, the retirement systems to provide healthcare to eligible benefit recipients.

The remainder of this note includes the required pension disclosures. See Note 14 for the required OPEB disclosures.

The proportionate share of each plan’s unfunded benefits is presented as a long-term net pension/OPEB liability (asset) on the accrual basis of accounting. Any liability for the contractually required pension contribution outstanding at the end of the year is included in pension and postemployment benefits payable on both the accrual and modified accrual bases of accounting.

Plan Description - School Employees Retirement System (SERS)

PlanDescription - The District’s non-teaching employees participate in SERS, a cost-sharing multiple-employer defined benefit pension plan administered by SERS. SERS provides retirement, disability and survivor benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. Authority to establish and amend benefits is provided by Ohio Revised Code Chapter 3309. SERS issues a publicly available, stand-alone financial report that includes financial statements, required supplementary information and detailed information about SERS’ fiduciary net position. That report can be obtained by visiting the SERS website at www.ohsers.org under Employers/Audit Resources.

51

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2023

NOTE 13 - DEFINED BENEFIT PENSION PLANS - (Continued)

Age and service requirements for retirement are as follows:

Eligible to Retire on or before
August 1, 2017 *

Eligible to Retire after
August 1, 2017

Full benefits

Actuarially reduced benefits

Any age with 30 years of service credit

Age 60 with 5 years of service credit; or

Age 55 with 25 years of service credit

Age 67 with 10 years of service credit; or Age 57 with 30 years of service credit

Age 62 with 10 years of service credit; or

Age 60 with 25 years of service credit

* Members with 25 years of service credit as of August 1, 2017 will be included in this plan.

Annual retirement benefits are calculated based on final average salary multiplied by a percentage that varies based on years of service; 2.2% for the first thirty years of service and 2.5% for years of service credit over 30. Final average salary is the average of the highest three years of salary.

An individual whose benefit effective date is before April 1, 2018, is eligible for a cost-of-living adjustment (COLA) on the first anniversary date of the benefit. Beginning April 1, 2018, new benefit recipients must wait until the fourth anniversary of their benefit for COLA eligibility. The COLA is added each year to the base benefit amount on the anniversary date of the benefit. A three-year COLA suspension was in effect for all benefit recipients for the years 2018, 2019, and 2020. Upon resumption of the COLA, it will be indexed to the percentage increase in the CPI-W, not to exceed 2.5% and with a floor of 0%. In 2022, the Board of Trustees approved a 2.5% cost-of-living adjustment (COLA) for eligible retirees and beneficiaries in 2023.

Funding Policy - Plan members are required to contribute 10.00% of their annual covered salary and the District is requiredtocontribute 14.00% ofannualcovered payroll. The contribution requirements of plan members andemployers are established and may be amended by the SERS’ Retirement Board up to statutory maximum amounts of 10.00% for plan members and 14.00% for employers. The Retirement Board, acting with the advice of the actuary, allocates the employer contribution rate among four of the System’s funds (Pension Trust Fund, Death Benefit Fund, Medicare B Fund, and Health Care Fund). For the fiscal year ended June 30, 2023, the allocation to pension, death benefits, and Medicare B was 14.00%. For fiscal year 2023, the Retirement Board did not allocate any employer contribution to the Health Care Fund.

The District’s contractually required contribution to SERS was $776,528 for fiscal year 2023. Of this amount, $55,765 is reported as pension and postemployment benefits payable.

Plan Description - State Teachers Retirement System (STRS)

Plan Description - Licensed teachers participate in STRS, a cost-sharing multiple-employer public employee retirement system administered by STRS. STRS provides retirement and disability benefits to members and death and survivor benefits to beneficiaries. STRS issues a stand-alone financial report that includes financial statements, required supplementary information and detailed information about STRS’ fiduciary net position. That report can be obtained by writing to STRS, 275 E. Broad St., Columbus, OH 43215-3771, by calling (888) 227-7877, or by visiting the STRS website at www.strsoh.org.

New members have a choice of three retirement plans: a Defined Benefit (DB) Plan, a Defined Contribution (DC) Plan and a Combined (CO) Plan. Benefits are established by Ohio Revised Code Chapter 3307.

52

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2023

NOTE 13 - DEFINED BENEFIT PENSION PLANS - (Continued)

The DB plan offers an annual retirement allowance based on final average salary multiplied by a percentage that varies based on years of service. Effective August 1, 2015, the calculation is 2.20% of final average salary for the five highest years of earnings multiplied by all years of service. Eligibility changes will be phased in until August 1, 2023, when retirement eligibility for unreduced benefits will be five years of service credit and age 65, or 35 years of service credit and at least age 60.

Eligibility changes for DB Plan members who retire with actuarially reduced benefits will be phased in until August 1, 2023 when retirement eligibility will be five years of qualifying service credit and age 60, or 30 years of service credit regardless of age.

The DC Plan allows members to place all of their member contributions and 9.53% of the 14% employer contributions into an investment account. The member determines how to allocate the member and employer money among various investment choices offered by STRS Ohio. The remaining 4.47% of the 14% employer rate is allocated to the defined benefit unfunded liability. A member is eligible to receive a retirement benefit at age 50 and termination of employment. The member may elect to receive a lifetime monthly annuity or a lump sum withdrawal.

The Combined Plan offers features of both the DB Plan and the DC Plan. In the Combined Plan, 12% of the 14% member rate goes to the DC Plan and the remaining 2% is applied to the DB Plan. Member contributions to the DC Plan are allocated among investment choices by the member, and contributions to the DB Plan from the employer and the member are used to fund the defined benefit payment at a reduced level from the regular DB Plan. The defined benefit portion of the Combined Plan payment is payable to a member on or after age 60 with five years of service. The defined contribution portion of the account may be taken as a lump sum payment or converted to a lifetime monthly annuity after termination of employment at age 50 and after termination of employment.

New members who choose the DC Plan or Combined Plan will have another opportunity to reselect a permanent plan during their fifth year of membership. Members may remain in the same plan or transfer to another STRS plan. The optional annuitization of a member’s defined contribution account or the defined contribution portion of a member’s Combined Plan account to a lifetime benefit results in STRS bearing the risk of investment gain or loss on the account. STRS has therefore included all three plan options as one defined benefit plan for GASB 68 reporting purposes.

A DB or Combined Plan member with five or more years of credited service, who is determined to be disabled, may qualify for a disability benefit. New members, on or after July 1, 2013, must have at least ten years of qualifying service credit to apply for disability benefits. Members in the DC Plan who become disabled are entitled only to their account balance. Eligible survivors of members who die before service retirement may qualify for monthly benefits. If a member of the DC Plan dies before retirement benefits begin, the member’s designated beneficiary is entitled to receive the member’s account balance.

Funding Policy - Employer and member contribution rates are established by the State Teachers Retirement Board and limited by Chapter 3307 of the Ohio Revised Code. The fiscal year 2023 employer and employee contribution rate of 14% was equal to the statutory maximum rates. For fiscal year 2023, the full employer contribution was allocated to pension.

The District’s contractually required contribution to STRS was $2,841,837 for fiscal year 2023. Of this amount, $353,324 is reported as pension and postemployment benefits payable.

53

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2023

NOTE 13 - DEFINED BENEFIT PENSION PLANS - (Continued)

Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions

The net pension liability was measured as of June 30, 2022, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The District's proportion of the net pension liability was based on the District's share of contributions to the pension plan relative to the contributions of all participating entities.

Following is information related to the proportionate share and pension expense:

Proportion of the net pension liability prior measurement date
Proportion of the net pension liability current measurement date
Change in proportionate share

Proportionate share of the net

SERS

0.141238800%

0.137737600%

-0.003501200%

STRS	Total

0.146246823%

0.145260290%

-0.000986533%

pension liability                                                    $          7,449,921         $       32,291,546         $ 39,741,467 Pension expense                                                       $             265,618         $         3,720,678         $ 3,986,296

At June 30, 2023, the District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred outflows of resources Differences between expected and
actual experience

Net difference between projected and

SERS

$	301,728

STRS

$	413,373

Total

$	715,101

actual earnings on pension plan investments Changes of assumptions
Difference between employer contributions and proportionate share of contributions/ change in proportionate share
Contributions subsequent to the measurement date

Total deferred outflows of resources

-73,509

-

776,528

$ 1,151,765

1,123,676 3,864,328

403,744

2,841,837

$ 8,646,958

1,123,676 3,937,837

403,744

3,618,365

$ 9,798,723

54

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2023

NOTE 13 - DEFINED BENEFIT PENSION PLANS - (Continued)

Deferred inflows of resources Differences between expected and
actual experience

Net difference between projected and

actual earnings on pension plan investments

SERS

$	48,907

259,969

STRS

$	123,524

-

Total

$	172,431

259,969

Changes of assumptions

Difference between employer contributions and proportionate share of contributions/ change in proportionate share

Total deferred inflows of resources

-

175,425

$	484,301

2,908,728

293,189

$ 3,325,441

2,908,728

468,614

$ 3,809,742

$3,618,365 reported as deferredoutflows of resources related topensionresulting from District contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the fiscal year ending June 30, 2024.

Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pension will be recognized in pension expense as follows:

Fiscal Year Ending June 30:

2024

2025

SERS

$	(78,222)

(91,498)

STRS

$	233,087

(97,257)

Total

$	154,865

(188,755)

2026	(371,368)

2027	432,024

(931,040)

3,274,890

(1,302,408)

3,706,914

Total	$	(109,064)	$     2,479,680	$     2,370,616

Actuarial Assumptions - SERS

SERS’ total pension liability was determined by their actuaries in accordance with GASB Statement No. 67, as part of their annualactuarial valuation for each defined benefit retirement plan. Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts (e.g., salaries, credited service) and assumptions about the probability of occurrence of events far into the future (e.g., mortality, disabilities, retirements, employment termination). Actuarially determined amounts are subject to continual review and potential modifications, as actual results are compared with past expectations and new estimates are made about the future.

Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employers and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing benefit costs between the employers and plan members to that point. The projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations.

Actuarial calculations reflect a long-term perspective. For a newly hired employee, actuarial calculations will take into account the employee’s entire career with the employer and also take into consideration the benefits, if any, paid to the employee after termination of employment until the death of the employee and any applicable contingent annuitant. In many cases actuarial calculations reflect several decades of service with the employer and the payment of benefits after termination.

55

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2023

NOTE 13 - DEFINED BENEFIT PENSION PLANS - (Continued)

Key methods and assumptions used in calculating the total pension liability in the latest actuarial valuation, prepared as of June 30, 2022, are presented below:

Wage inflation:

Current measurement date Prior measurement date
Future salary increases, including inflation: Current measurement date
Prior measurement date COLA or ad hoc COLA:
Current measurement date Prior measurement date
Investment rate of return: Current measurement date Prior measurement date
Discount rate:

Current measurement date Prior measurement date
Actuarial cost method

2.40% 2.40%

3.25% to 13.58% 3.25% to 13.58%

2.00% 2.00%

7.00% net of system expenses 7.00% net of system expenses

7.00% 7.00%
Entry age normal (level percent of payroll)

In2022, mortality rates were based on the PUB-2010 General Employee Amount WeightBelow Median Healthy Retiree mortality table projected to 2017 with ages set forward 1 year and adjusted 94.20% for males and set forward 2 years and adjusted 81.35% for females. Mortality among disabled members were based upon the PUB-2010 GeneralDisabled Retiree mortality table projected to 2017 with ages set forward 5 years and adjusted 103.3% for males and set forward 3 years and adjusted 106.8% for females. Future improvement in mortality rates is reflected by applying the MP-2020 projection scale generationally.

In the prior measurement date, mortality rates were based on the PUB-2010 General Employee Amount Weight Below Median Healthy Retiree mortality table projected to 2017 with ages set forward 1 year and adjusted 94.20% for males and set forward 2 years and adjusted 81.35% for females. Mortality among disabled members were based upon the PUB-2010General Disabled Retiree mortality table projected to2017with ages set forward 5years and adjusted 103.3% for males and set forward 3 years and adjusted 106.8% for females. Future improvement in mortality rates is reflected by applying the MP-2020 projection scale generationally.

The most recent experience study was completed for the five-year period ended June 30, 2020.

The long-term return expectation for the Pension Plan Investments has been determinedusing a building-block approach and assumes a time horizon, as defined in SERS’ Statement of Investment Policy. A forecasted rate of inflation serves as the baseline for the return expectation. Various real return premiums over the baseline inflation rate have been established for each asset class. The long-term expected nominal rate of return has been determined by calculating a weighted average of the expected real return premiums for each asset class, adding the projected inflation rate, and adding the expected return from rebalancing uncorrelated asset classes.

56

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2023

NOTE 13 - DEFINED BENEFIT PENSION PLANS - (Continued)

The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Asset Class

Cash

US Equity

Non-US Equity Developed Non-US Equity Emerging Fixed Income/Global Bonds Private Equity
Real Estate/RealAssets Multi-Asset Strategy Private Debt/Private Credit

Total

Target Allocation

2.00 % 24.75 13.50
6.75 19.00 11.00 16.00 4.00 3.00

100.00 %

Long-Term Expected RealRate of Return

(0.45) % 5.37 6.22 8.22 1.20
10.05 4.87 3.39
5.38

Discount Rate - The total pension liability was calculated using the discount rate of 7.00%. The projection of cash flows used to determine the discount rate assumed the contributions from employers and from the members would be computed based on contribution requirements as stipulated by State statute. Projected inflows from investment earnings were calculated using the long-term assumed investment rate of return (7.00%). Based on those assumptions, the plan’s fiduciary net position was projected to be available to make all future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefits to determine the total pension liability.

Sensitivity of the District's Proportionate Share of the Net Pension Liability to Changes in the Discount Rate - Net pension liability is sensitive to changes in the discount rate, and to illustrate the potential impact the following table presents the net pension liability calculated using the discount rate of 7.00%, as well as what each plan’s net pension liability wouldbe if it were calculatedusing a discount rate that is one percentage point lower (6.00%), orone percentage point higher (8.00%) than the current rate.

1% Decrease

District's proportionate share

Current

Discount Rate	1% Increase

of the net pension liability	$	10,965,928	$	7,449,921	$	4,487,733

57

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2023

NOTE 13 - DEFINED BENEFIT PENSION PLANS - (Continued)

Actuarial Assumptions - STRS

Key methods and assumptions used in the latest actuarial valuation, reflecting experience study results used in the June 30, 2022, actuarial valuation are presented below:

June 30, 2022

Inflation	2.50%

June 30, 2021

2.50%

Projected salary increases

Investment rate of return

Discount rate of return Payroll increases
Cost-of-living adjustments

(COLA)

Varies by service from 2.50% to 8.50%

7.00%, net of investment expenses, including inflation
7.00% 3.00%
0.00%

12.50% at age 20 to 2.50% at age 65
7.00%, net of investment expenses, including inflation
7.00% 3.00%
0.00%

For the June 30, 2022 actuarial valuation, post-retirement mortality rates are based on the Pub-2010 Teachers Healthy Annuitant Mortality Table, adjusted 110% for males, projected forward generationally using mortality improvement scale MP-2020. Pre-retirement mortality rates are based on Pub-2010 Teachers Employee Table adjusted 95% for females, projected forward generationally using mortality improvement scale MP-2020. Post-retirement disabled mortality rates are based on Pub-2010 Teachers Disable Annuitant Table projected forward generationally using mortality improvement scale MP-2020.

For the prior measurement date, post-retirement mortality rates are based on the RP-2014 Annuitant Mortality Tables with 50% of rates through age 69, 70% of rates between ages 70 and 79, 90% of rates between ages 80 and 84, and 100% of rates thereafter, projected forward generationally using mortality improvement scale MP-2016. Pre-retirement mortality rates are based on RP-2014 Employee Mortality Tables, projected forward generationally using mortality improvement scale MP-2016. Post-retirement disabled mortality rates are based on the RP-2014 Disabled Mortality Tables with 90% of rates for males and 100% of rates for females, projected forward generationally using mortality improvement scale MP-2016.

Actuarial assumptions used in the June 30, 2022 valuation are based on the results of an actuarial experience study for the period July 1, 2015 through June 30, 2021. An actuarial experience study is done on a quinquennial basis.

58

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2023

NOTE 13 - DEFINED BENEFIT PENSION PLANS - (Continued)

STRS Ohio’s investment consultant develops an estimate range for the investment return assumption based on the target allocation adopted by the Retirement Board. The target allocation and long-term expected rate of return for each major asset class are summarized as follows:

Asset Class

Domestic Equity International Equity Alternatives
Fixed Income Real Estate
Liquidity Reserves

Total

Target Allocation*

26.00 % 22.00 19.00 22.00 10.00
1.00

100.00 %

Long-Term Expected Real Rate of Return **

6.60 % 6.80 7.38 1.75 5.75
1.00

* Target allocation percentage is effective as of July 1, 2022. Target weights were phased in over a 3-month period concluding on October 1, 2022.
**10-Year annualized geometric nominal returns, which include the real rate of return and inflation of 2.25% and is net of investment expenses. Over a 30-year period, STRS Ohio’s investment consultant indicates that the above target allocations should generate a return above the actuarial rate of return, without net value added by management.

Discount Rate - The discount rate used to measure the total pension liability was 7.00% as of June 30, 2022. The projection of cash flows used to determine the discount rate assumes that member and employer contributions will be made at the statutory contribution rates in accordance with the rates described previously. For this purpose, only employer contributions that are intended to fund benefits of current plan members and their beneficiaries are included. Based on those assumptions, STRS Ohio’s fiduciary net position was projected to be available to make all projected future benefit payments to current plan members as of June 30, 2022. Therefore, the long-term expected rate of return on pension plan investments of 7.00% was applied to all periods of projected benefit payments to determine the total pension liability as of June 30, 2022.

Sensitivity of the District's Proportionate Share of the Net Pension Liability to Changes in the Discount Rate - The following table represents the net pension liability as of June 30, 2022, calculated using the current period discount rate assumption of 7.00%, as well as what the net pension liability would be if it were calculated using a discount rate that is one percentage point lower (6.00%) or one percentage point higher (8.00%) than the current assumption:

1% Decrease

District's proportionate share

Current

Discount Rate	1% Increase

of the net pension liability	$	48,780,770	$	32,291,546	$	18,346,767

Changes Between Measurement Date and Reporting Date - STRS approved a one-time 1.00% cost-of-living adjustment to eligible benefit recipients effective July 1, 2023. It is unknown what effect this change will have on the net pension liability.

59

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2023

NOTE 14 - DEFINED BENEFIT OPEB PLANS

Net OPEB Liability/Asset

See Note 13 for a description of the net OPEB liability (asset).

Plan Description - School Employees Retirement System (SERS)

Health Care Plan Description - The District contributes to the SERS Health Care Fund, administered by SERS for non-certificated retirees and their beneficiaries. For GASB 75 purposes, this plan is considered a cost-sharing other postemployment benefit (OPEB) plan. SERS’ Health Care Plan provides healthcare benefits to eligible individuals receiving retirement, disability, and survivor benefits, and to their eligible dependents. Members who retire after June 1, 1986, need 10 years of service credit, exclusive of most types of purchased credit, to qualify to participate in SERS’ health care coverage. In addition to age and service retirees, disability benefit recipients and beneficiaries who are receiving monthly benefits due to the death of a member or retiree, are eligible for SERS’ health care coverage. Most retirees and dependents choosing SERS’ health care coverage are over the age of 65 and therefore enrolled in a fully insured Medicare Advantage plan; however, SERS maintains a traditional, self-insured preferred provider organization for its non-Medicare retiree population. For both groups, SERS offers a self-insured prescription drug program. Health care is a benefit that is permitted, not mandated, by statute. The financial report of the Plan is included in the SERS Annual Comprehensive Financial Report which can be obtained on SERS’ website at www.ohsers.org under Employers/Audit Resources.

Access to health care for retirees and beneficiaries is permitted in accordance with Section 3309 of the Ohio Revised Code. The Health Care Fund was established and is administered in accordance with Internal Revenue Code Section 105(e). SERS’ Retirement Board reserves the right to change or discontinue any health plan or program. Active employee members do not contribute to the Health Care Plan. The SERS Retirement Board established the rules for the premiums paid by the retirees for health care coverage for themselves and their dependents or for their surviving beneficiaries. Premiums vary depending on the plan selected, qualified years of service, Medicare eligibility, and retirement status.

Funding Policy - State statute permits SERS to fund the health care benefits through employer contributions. Each year, after the allocation for statutorily required pensions and benefits, the Retirement Board may allocate the remainder of the employer contribution of 14% of covered payroll to the Health Care Fund in accordance with the funding policy. For the fiscal year ended June 30, 2023, SERS did not allocate any employer contributions to post-employment health care. An additional health care surcharge on employers is collected for employees earning less than an actuarially determined minimum compensation amount, pro-rated if less than a full year of service credit was earned. For fiscal year 2023, this amount was $25,000. Statutes provide that no employer shall pay a health care surcharge greater than 2% of that employer’s SERS-covered payroll; nor may SERS collect in aggregate more than 1.5% of the total statewide SERS-covered payroll for the health care surcharge. For fiscal year 2023, the District’s surcharge obligation was $73,444.

The surcharge added to the allocated portion of the 14% employer contribution rate is the total amount assigned to the Health Care Fund. The District’s contractually required contribution to SERS was $73,444 for fiscal year 2023. Of this amount, $73,444 is reported as pension and postemployment benefits payable.

Plan Description - State Teachers Retirement System (STRS)

Plan Description - The State Teachers Retirement System of Ohio (STRS) administers a cost-sharing Health Plan administered for eligible retirees who participated in the defined benefit or combined pension plans offered by STRS. Ohio law authorizes STRS to offer this plan. Benefits include hospitalization, physicians’ fees, prescription drugs and partial reimbursement of monthly Medicare Part Bpremiums. TheMedicare Part B monthly reimbursement elimination date was postponed indefinitely. The Plan is included in the report of STRS which can be obtained by visiting www.strsoh.org or by calling (888) 227-7877.

60

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2023

NOTE 14 - DEFINED BENEFIT OPEB PLANS - (Continued)

Funding Policy - Ohio Revised Code Chapter 3307 authorizes STRS to offer the Plan and gives the Retirement Board discretionary authority over how much, if any, of the health care costs will be absorbed by STRS. Active employee members do not contribute to the Health Care Plan. Nearly all health care plan enrollees, for the most recent year, pay a portion of the health care costs in the form of a monthly premium. Under Ohio law, funding for post-employment health care may be deducted from employer contributions, currently 14% of covered payroll. For the fiscal year ended June 30, 2023, STRS did not allocate any employer contributions to post-employment health care.

OPEB Liabilities/Assets, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB

The net OPEB liability/asset was measured as of June 30, 2022, and the total OPEB liability/asset used to calculate the net OPEB liability/asset was determined by an actuarial valuation as of that date. The District's proportion of the net OPEB liability/asset was based on the District's share of contributions to the respective retirement systems relative to the contributions of all participating entities.

Following is information related to the proportionate share and OPEB expense:

Proportion of the net OPEB liability/asset prior measurement date
Proportion of the net OPEB liability/asset current measurement date
Change in proportionate share

Proportionate share of the net

SERS

0.144252800%

0.140110600%

-0.004142200%

STRS	Total

0.146246823%

0.145260290%

-0.000986533%

OPEB liability Proportionate share of the net
OPEB asset

OPEB expense

$	1,967,167

$	-

$	(201,665)

$	-

$	3,761,272

$	(717,354)

$ 1,967,167

$ 3,761,272

$	(919,019)

At June 30, 2023, the District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred outflows of resources Differences between expected and
actual experience

Net difference between projected and actual earnings on OPEB plan investments
Changes of assumptions

Difference between employer contributions and proportionate share of contributions/ change in proportionate share
Contributions subsequent to the measurement date

Total deferred outflows of resources

SERS

$	16,539

10,223 312,903

45,218

73,444

$	458,327

STRS

$	54,530

65,475 160,219

14,596

-

$	294,820

Total

$	71,069

75,698 473,122

59,814

73,444

$	753,147

61

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2023

NOTE 14 - DEFINED BENEFIT OPEB PLANS - (Continued)

Deferred inflows of resources Differences between expected and
actual experience

SERS

$ 1,258,341

STRS

$	564,875

Total

$ 1,823,216

Changes of assumptions

Difference between employer contributions and proportionate share of contributions/ change in proportionate share

Total deferred inflows of resources

807,538

250,828

$ 2,316,707

2,667,107

74,048

$ 3,306,030

3,474,645

324,876

$ 5,622,737

$73,444 reported as deferred outflows of resources related to OPEB resulting from District contributions subsequent to the measurement date will be recognized as a reduction of the net OPEB liability/asset in the fiscal year ending June 30, 2024.

Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

Fiscal Year Ending June 30:

2024 2025 2026 2027 2028
Thereafter

SERS

$	(462,926) (424,538) (358,502) (244,678) (171,077)
(270,103)

STRS

$	(902,217) (878,095) (399,029) (167,307) (219,577)
(444,985)

Total

$ (1,365,143) (1,302,633) (757,531) (411,985) (390,654)
(715,088)

Total	$ (1,931,824)	$ (3,011,210)	$ (4,943,034)

Actuarial Assumptions - SERS

The total OPEB liability is determined by SERS’ actuaries in accordance with GASB Statement No. 74, as part of their annual actuarial valuation for each retirement plan. Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts (e.g., salaries, credited service) and assumptions about the probability of occurrence of events far into the future (e.g., mortality, disabilities, retirements, employment terminations). Actuarially determined amounts are subject to continual review and potential modifications, as actual results are compared with past expectations and new estimates are made about the future.

Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employers and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing benefit costs between the employers and plan members to that point. The projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations.

Actuarial calculations reflect a long-term perspective. For a newly hired employee, actuarial calculations will take into account the employee's entire career with the employer and also take into consideration the benefits, if any, paid to the employee after termination of employment until the death of the employee and any applicable contingent annuitant. In many cases, actuarial calculations reflect several decades of service with the employer and the payment of benefits after termination.

62

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2023

NOTE 14 - DEFINED BENEFIT OPEB PLANS - (Continued)

Key methods and assumptions used in calculating the total OPEB liability in the latest actuarial valuation date of June 30, 2022 are presented below:

Wage inflation:

Current measurement date Prior measurement date
Future salary increases, including inflation: Current measurement date
Prior measurement date Investment rate of return:
Current measurement date

Prior measurement date

Municipal bond indexrate: Current measurement date Prior measurement date
Single equivalent interest rate, net of plan investment expense, including price inflation:
Current measurement date Prior measurement date
Medical trend assumption: Current measurement date Prior measurement date
Medicare

Pre-Medicare

2.40% 2.40%

3.25% to 13.58% 3.25% to 13.58%

7.00% net of investment expense, including inflation 7.00% net of investment expense, including inflation

3.69% 1.92%

4.08% 2.27%

7.00to 4.40%

5.125 to 4.400%

6.750 to 4.400%

In2022, mortality rates were based on the PUB-2010 General Employee Amount WeightBelow Median Healthy Retiree mortality table projected to 2017 with ages set forward 1 year and adjusted 94.20% for males and set forward 2 years and adjusted 81.35% for females. Mortality among disabled members were based upon the PUB-2010 GeneralDisabled Retiree mortality table projected to 2017 with ages set forward 5 years and adjusted 103.3% for males and set forward 3 years and adjusted 106.8% for females. Future improvement in mortality rates is reflected by applying the MP-2020 projection scale generationally.

In the prior measurement date, mortality rates were based onthe PUB-2010 GeneralEmployee Amount Weighted Below Median Healthy Retiree mortality table projected to 2017 with ages set forward 1 year and adjusted 94.20% for males and set forward 2 years and adjusted 81.35% for females. Mortality among disabled members were based upon the PUB-2010General Disabled Retiree mortality table projected to2017with ages set forward 5years and adjusted 103.3% for males and set forward 3 years and adjusted 106.8% for females. Future improvement in mortality rates is reflected by applying the MP-2020 projection scale generationally.

The most recent experience study was completed for the five-year period ended June 30, 2020.

63

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2023

NOTE 14 - DEFINED BENEFIT OPEB PLANS - (Continued)

The long-term expected rate of return on plan assets is reviewed as part of the actuarial 5-year experience study. The most recent study covers fiscal years 2016 through 2020, and was adopted by the Board in 2021. Several factors are considered in evaluating the long-term rate of return assumption including long-term historical data, estimates inherent in current market data, and a long-normal distribution analysis in which best-estimate ranges of expected future real rates of return were developed by the investment consultant for each major asset class. These ranges were combined to produce the long-term expected rate of return, 7.00%, by weighting the expected future real rates of return by the target asset allocation percentage and then adding expected inflation. The capital market assumptions developed by the investment consultant are intended for use over a 10-year horizon and may not be useful in setting the long-term rate of return for funding pension plans which covers a longer timeframe. The assumption is intended to be a long-term assumption and is not expected to change absent a significant change in the asset allocation, a change in the inflation assumption, or a fundamental change in the market that alters expected returns in future years.

The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized as follows:

Asset Class

Cash

US Equity

Non-US Equity Developed Non-US Equity Emerging Fixed Income/GlobalBonds Private Equity
Real Estate/Real Assets Multi-Asset Strategy Private Debt/Private Credit

Total

Target Allocation

2.00 % 24.75 13.50
6.75 19.00 11.00 16.00 4.00 3.00

100.00 %

Long-Term Expected Real Rate of Return

(0.45) % 5.37 6.22 8.22 1.20
10.05 4.87 3.39
5.38

Discount Rate - The discount rate used to measure the total OPEB liability at June 30, 2022, was 4.08%. The discount rate used to measure total OPEB liability prior to June 30, 2022, was 2.27%. The projection of cash flows used to determine the discount rate assumed that contributions will be made from members and the System at the contribution rate of 1.50% of projected covered payroll each year, which includes a 1.50% payroll surcharge and no contributions from the basic benefits plan. Based on these assumptions, the OPEB plan’s fiduciary net position was projected to become insufficient to make all projected future benefit payments of current System members by SERS actuaries. The Municipal Bond Index Rate is used in the determination of the SEIR for both the June 30, 2022 and the June 30, 2021 total OPEB liability. The Municipal Bond Index rate is the single rate that will generate a present value of benefit payments equal to the sum of the present value determined by the long-term expected rate of return, and the present value determined by discounting those benefits after the date of depletion. The Municipal Bond Index Rate is 3.69% at June 30, 2022 and 1.92% at June 30, 2021.

64

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2023

NOTE 14 - DEFINED BENEFIT OPEB PLANS - (Continued)

Sensitivity of the District's Proportionate Share of the Net OPEB Liability to Changes in the Discount Rate and Changes in the Health Care Cost Trend Rates - The net OPEB liability is sensitive to changes in the discount rate and the health care cost trend rate. The following table presents the net OPEB liability, what the net OPEB liability would be if it were calculated using a discount rate that is 1 percentage point lower (3.08%) and higher (5.08%) than the current discount rate (4.08%). Also shown is what the net OPEB liability would be based on health care cost trend rates that are 1 percentage point lower (6.00% decreasing to 3.40%) and higher (8.00% decreasing to 5.40%) than the current rate (7.00% decreasing to 4.40%).

1% Decrease

District's proportionate share

Current

Discount Rate	1% Increase

of the net OPEB liability	$	2,443,252	$	1,967,167	$	1,582,838

1% Decrease

District's proportionate share

Current

Trend Rate	1% Increase

of the net OPEB liability	$	1,517,039	$	1,967,167	$	2,555,108

Actuarial Assumptions - STRS

Key methods and assumptions used in the latest actuarial valuation, reflecting experience study results used in the June 30, 2022 actuarial valuation, compared with June 30, 2021 actuarial valuation, are presented below:

June 30, 2022

Inflation	2.50%

June 30, 2021

2.50%

Projected salary increases

Investment rate of return

Payroll increases

Cost-of-living adjustments (COLA)
Discount rate of return Blended discount rate of return
Health care cost trends

Varies by service from 2.50% to 8.50%
7.00%, net of investment expenses, including inflation
3.00% 0.00%

7.00%

N/A

12.50% at age 20 to 2.50% at age 65
7.00%, net of investment expenses, including inflation
3.00% 0.00%

7.00%

N/A

Medical

Pre-Medicare Medicare
Prescription Drug Pre-Medicare
Medicare

Initial

7.50% -68.78%

9.00%

-5.47%

Ultimate

3.94% 3.94%

3.94%

3.94%

Initial

5.00% -16.18%

6.50%

29.98%

Ultimate

4.00% 4.00%

4.00%

4.00%

Projections of benefits include the historical pattern of sharing benefit costs between the employers and retired plan members.

65

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2023

NOTE 14 - DEFINED BENEFIT OPEB PLANS - (Continued)

For the June 30, 2022 actuarial valuation, for healthy retirees the post-retirement mortality rates are based on the Pub-2010 Teachers Healthy Annuitant Mortality Table, adjusted 110% for males, projected forward generationally using mortality improvement scale MP-2020; pre-retirement mortality rates are based on Pub-2010 Teachers Employee Table adjusted 95% for females, projected forward generationally using mortality improvement scale MP-2020. For disabled retirees, mortality rates are based on the Pub-2010 Teachers Disabled Annuitant Table projected forward generationally using mortality improvement scale MP-2020.

For the prior measurement date, for healthy retirees the mortality rates are based on the RP-2014 Annuitant Mortality Tables with 50% of rates through age 69, 70% of rates between ages 70 and 79, 90% of rates between ages 80 and 84, and 100% of rates thereafter, projected forward generationally using mortality improvement scale MP-2016. For disabled retirees, mortality rates are based on the RP-2014 Disabled Mortality Tables with 90% of rates for males and 100% of rates for females, projected forward generationally using mortality improvement scale MP-2016.

Actuarial assumptions used in the June 30, 2022 valuation are based on the results of an actuarial experience study for the period July 1, 2015 through June 30, 2021. An actuarial experience study is done on a quinquennial basis.

Assumption Changes Since the Prior Measurement Date - The discount rate remained unchanged at 7.00% for the June 30, 2022 valuation.

Benefit Term Changes Since the Prior Measurement Date - Salary increase rates were updated based on the actuarial experience study for the period July 1, 2015 through June 30, 2021 and were changed from age based to service based.

STRS’ investment consultant develops an estimate range for the investment return assumption based on the target allocation adopted by the Retirement Board. The target allocation and long-term expected rate of return for each major asset class are summarized as follows:

Asset Class

Domestic Equity International Equity Alternatives
Fixed Income Real Estate
Liquidity Reserves

Total

Target Allocation*

26.00 % 22.00 19.00 22.00 10.00
1.00

100.00 %

Long-Term Expected Real Rate of Return **

6.60 % 6.80 7.38 1.75 5.75
1.00

* Target allocation percentage is effective as of July 1, 2022. Target weights were phased in over a 3-month period concluding on October 1, 2022.
**10-Year annualized geometric nominal returns, which include the real rate of return and inflation of 2.25% and is net of investment expenses. Over a 30-year period, STRS Ohio’s investment consultant indicates that the above target allocations should generate a return above the actuarial rate of return, without net value added by management.

Discount Rate - The discount rate used to measure the total OPEB liability was 7.00% as of June 30, 2022. The projection of cash flows used to determine the discount rate assumed STRS Ohio continues to allocate no employer contributions to the health care fund. Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected future benefit payments to current plan members as of June 30, 2022. Therefore, the long-term expected rate of return on health care fund investments of 7.00% was applied to all periods of projected health care costs to determine the total OPEB liability as of June 30, 2022.

66

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2023

NOTE 14 - DEFINED BENEFIT OPEB PLANS - (Continued)

Sensitivity of the District's Proportionate Share of the Net OPEB Asset to Changes in the Discount and Health Care Cost Trend Rate - The following table represents the net OPEB asset as of June 30, 2022, calculated using the current period discount rate assumption of 7.00%, as well as what the net OPEB asset would be if it were calculated using a discount rate that is one percentage point lower (6.00%) or one percentage point higher (8.00%) than the current assumption. Also shown is the net OPEB asset as if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current health care cost trend rates.

1% Decrease

District's proportionate share

Current

Discount Rate	1% Increase

of the net OPEB asset	$	3,483,008	$	3,761,272	$	4,004,607

1% Decrease

District's proportionate share

Current

Trend Rate	1% Increase

of the net OPEB asset	$	3,901,354	$	3,761,272	$	3,584,453

NOTE 15 - BUDGETARY BASIS OF ACCOUNTING

While reporting financial position, results of operations, and changes in fund balance on the basis of generally accepted accounting principles (GAAP), the budgetary basis as provided by law is based upon accounting for certain transactions on a basis of cash receipts and disbursements.

The statement of revenue, expenditures and changes in fund balance - budget and actual (non-GAAP budgetary basis) presented for the general fund is presented on the budgetary basis to provide a meaningful comparison of actual results with the budget. The major differences between the budget basis and the GAAP basis are that:

(a) Revenues and other financing sources are recorded when received in cash (budget basis) as opposed to when susceptible to accrual (GAAP basis);

(b) Expenditures andother financinguses are recorded when paid in cash (budget basis) as opposed towhen the liability is incurred (GAAP basis);

(c) In order to determine compliance with Ohio law, and to reserve that portion of the applicable appropriation, total outstanding encumbrances (budget basis) are recorded as the equivalent of an expenditure, as opposed to assigned or committed fund balance for that portion of outstanding encumbrances not already recognized as an account payable (GAAP basis); and,

(d) Some funds are included in the general fund (GAAP basis), but have separate legally adopted budgets (budget basis).

67

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2023

NOTE 15 - BUDGETARY BASIS OF ACCOUNTING - (Continued)

The adjustments necessary to convert the results of operations for the year on the budget basis to the GAAP basis for the general fund is as follows:

Net Change in Fund Balance

 General fund 

Budget basis

Net adjustment for revenue accruals Net adjustment for expenditure accruals Net adjustment for other sources/uses Funds budgeted elsewhere
Adjustment for encumbrances

GAAP basis

$     (1,351,305) (243,440)
169,706 (1,162,228)
187,002 1,230,289

$     (1,169,976)

Certain funds that are legally budgeted in separate special revenue funds are considered part of the general fund on a GAAP basis. This includes the special trust fund, the termination benefits fund, and the public school support fund.

NOTE 16 - CONTINGENCIES

A. Grants

The District receives significant financial assistance from numerous federal, State and local agencies in the form of grants. The disbursement of funds received under these programs generally requires compliance with terms and conditions specified in the grant agreements and are subject to audit by the grantor agencies. Any disallowed claims resulting from such audits could become a liability of the District. However, in the opinion of management, any such disallowed claims will not have a material effect on the financial position of the District.

B. Litigation

The District is not party to any claims or lawsuits that would, in the District’s opinion, have a material effect of the basic financial statements.

C.	Foundation Funding

Foundation funding is based on the annualized full-time equivalent (FTE) enrollment of each student. Traditional districts must comply with minimum hours of instruction, instead of a minimum number of school days each year. The funding formula the Ohio Department of Education (ODE) is legislatively required to follow will continue to adjust as enrollment information is updated by the District, which can extend past the fiscal year-end. As of the date of this report, ODE has not finalized the impact of enrollment adjustments to the June 30, 2023 Foundation funding for the District; therefore, the financial statement impact is not determinable at this time. ODE and management believe this will result in either a receivable to or liability of the District.

68

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2023

NOTE 17 - SET-ASIDES

The District is required by State law to annually set-aside certain general fund revenue amounts, as defined by statutory formula, for the acquisition and construction of capital improvements. Amounts not spent by the end of the fiscal year or offset by similarly restricted resources received during the year must be held in cash at fiscal year-end. This amount must be carried forward to be used for the same purpose in future years.	Expenditures exceeding the set-aside requirement may not be carried forward to the next fiscal year.

The following cash-basis information describes the change in the fiscal year-end set-aside amount for capital improvements. Disclosure of this information is required by State statute.

Capital Improvements

Set-aside balance June 30, 2022

Current year set-aside requirement

Current year qualifying expenditures

Total

Balance carried forward to fiscal year 2024

Set-aside balance June 30, 2023

$	-

458,205

(1,347,384)

$	(889,179)

$	-

$	-

NOTE 18 - INTERFUND TRANSACTIONS

A. Interfund balances at June 30, 2023 as reported on the fund financial statements, consist of the following individual interfund loans receivable and payable:

Receivable fund	Payable fund	 Amount 

General	Nonmajor governmental funds	$	51,817

The primary purpose of interfund balances is to cover costs in specific funds where revenues were not received by June 30. Interfund balances will be repaid once the anticipated revenues are received. All interfund balances are expected to be repaid within one year. Interfund balances between governmental funds are eliminated on the government-wide financial statements.

B. Interfund transfers for the fiscal year ended June 30, 2023, consisted of the following, as reported on the fund statements:

Transfers From	Transfers To	 Amount 

General fund	Nonmajor governmental funds	$	553,253

Interfund transfers represent the use of unrestricted revenues collected in the general fund that are used to finance various programs accounted for in other funds in accordance with budgetary authorizations. Interfund transfers between governmental funds are eliminated for reporting on the statement of activities. All transfers were made in compliance with Ohio Revised Code Sections 5705.14, 5705.15 and 5705.16.

69

THIS PAGE IS INTENTIONALLY LEFT BLANK

70

REQUIRED SUPPLEMENTARY INFORMATION

71

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

SCHEDULES OF REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF THE DISTRICT'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
SCHOOL EMPLOYEES RETIREMENT SYSTEM (SERS) OF OHIO

LAST TEN FISCAL YEARS

2023	2022	2021	2020

District's proportion of the

net pension liability	0.13773760%	0.14123880%	0.14372790%	0.14218270%

District's proportionate share of the net pension liability

District's covered payroll

$	7,449,921

$	5,109,007

$	5,211,302

$	4,708,243

$	9,506,466

$	5,049,379

$	8,507,040

$	4,920,281

District's proportionate share of the

net pension liability as a percentage of its covered payroll

Plan fiduciary net position as a percentage of the total pension liability

145.82%

75.82%

110.68%

82.86%

188.27%

68.55%

172.90%

70.85%

Amounts presented for each fiscal year were determined as of the District's measurement date which is the prior year-end.

SEE ACCOMPANYING NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION

72

2019

0.13819580%

2018

0.14906850%

2017

0.15464140%

2016

0.15787490%

2015

0.15158800%

2014

0.15158800%

$	7,914,729

$	4,761,207

$	8,906,514

$	5,052,064

$	11,318,324

$	4,760,650

$	9,008,495

$	4,682,458

$	7,671,782

$	4,449,336

$	9,014,452

$	3,818,064

166.23%

71.36%

176.29%

69.50%

237.75%

62.98%

192.39%

69.16%

172.43%

71.70%

236.10%

65.52%

73

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

SCHEDULES OF REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF THE DISTRICT'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
STATE TEACHERS RETIREMENT SYSTEM (STRS) OF OHIO

LAST TEN FISCAL YEARS

2023	2022	2021	2020

District's proportion of the

net pension liability	0.14526029%	0.14624682%	0.14467771%	0.14295751%

District's proportionate share of the net pension liability

District's covered payroll

$	32,291,546

$	18,662,814

$	18,698,971

$	18,159,957

$	35,006,858

$	17,582,221

$	31,614,194

$	16,914,686

District's proportionate share of the

net pension liability as a percentage of its covered payroll

Plan fiduciary net position as a percentage of the total pension liability

173.03%

78.88%

102.97%

87.78%

199.10%

75.48%

186.90%

77.40%

Amounts presented for each fiscal year were determined as of the District's measurement date which is the prior year-end.

SEE ACCOMPANYING NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION

74

2019

0.13894386%

2018

0.14425203%

2017

0.14569108%

2016

0.15100969%

2015

0.13322101%

2014

0.13322101%

$	30,550,635

$	16,532,179

$	34,267,379

$	15,913,564

$	48,767,196

$	15,385,029

$	41,734,661

$	16,072,357

$	32,403,960

$	14,658,546

$	38,599,385

$	14,443,892

184.79%

77.31%

215.33%

75.30%

316.98%

66.80%

259.67%

72.10%

221.06%

74.70%

267.24%

69.30%

75

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

SCHEDULES OF REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF DISTRICT PENSION CONTRIBUTIONS SCHOOL EMPLOYEES RETIREMENT SYSTEM (SERS) OF OHIO

LAST TEN FISCAL YEARS

2023	2022	2021	2020

Contractually required contribution	$	776,528	$	715,261	$	659,154	$	706,913

Contributions in relation to the

contractually required contribution	(776,528)	(715,261)	(659,154)	(706,913)

Contribution deficiency (excess)

District's covered payroll

$	-

$	5,546,629

$	-

$	5,109,007

$	-

$	4,708,243

$	-

$	5,049,379

Contributions as a percentage of

covered payroll	14.00%	14.00%	14.00%	14.00%

SEE ACCOMPANYING NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION

76

2019	2018	2017	2016	2015	2014

$	664,238	$	642,763	$	707,289	$	666,491	$	617,148	$	616,678

(664,238)	(642,763)	(707,289)	(666,491)	(617,148)	(616,678)

$	-

$	4,920,281

$	-

$	4,761,207

$	-

$	5,052,064

$	-

$	4,760,650

$	-

$	4,682,458

$	-

$	4,449,336

13.50%	13.50%	14.00%	14.00%	13.18%	13.86%

77

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

SCHEDULES OF REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF DISTRICT PENSION CONTRIBUTIONS STATE TEACHERS RETIREMENT SYSTEM (STRS) OF OHIO

LAST TEN FISCAL YEARS

2023	2022	2021	2020

Contractually required contribution	$	2,841,837	$	2,612,794	$	2,542,394	$	2,461,511

Contributions in relation to the

contractually required contribution	(2,841,837)	(2,612,794)	(2,542,394)	(2,461,511)

Contribution deficiency (excess)

District's covered payroll

$	-

$	20,298,836

$	-

$	18,662,814

$	-

$	18,159,957

$	-

$	17,582,221

Contributions as a percentage of

covered payroll	14.00%	14.00%	14.00%	14.00%

SEE ACCOMPANYING NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION

78

2019	2018	2017	2016	2015	2014

$	2,368,056	$	2,314,505	$	2,227,899	$	2,153,904	$	2,250,130	$	1,905,611

(2,368,056)	(2,314,505)	(2,227,899)	(2,153,904)	(2,250,130)	(1,905,611)

$	-

$	16,914,686

$	-

$	16,532,179

$	-

$	15,913,564

$	-

$	15,385,029

$	-

$	16,072,357

$	-

$	14,658,546

14.00%	14.00%	14.00%	14.00%	14.00%	13.00%

79

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

SCHEDULES OF REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF THE DISTRICT'S PROPORTIONATE SHARE OF THE NET OPEB LIABILITY
SCHOOL EMPLOYEES RETIREMENT SYSTEM (SERS) OF OHIO

LAST SEVEN FISCAL YEARS

2023	2022	2021	2020

District's proportion of the

net OPEB liability	0.14011060%	0.14425280%	0.14521270%	0.14249020%

District's proportionate share of the net OPEB liability

District's covered payroll

$	1,967,167	$

$	5,109,007	$

2,730,102	$

4,708,243	$

3,155,947	$

5,049,379	$

3,583,329

4,920,281

District's proportionate share of the

net OPEB liability as a percentage of its covered payroll

Plan fiduciary net position as a percentage of the total OPEB liability

38.50%	57.99%	62.50%	72.83%

30.34%	24.08%	18.17%	15.57%

Note: Information prior to 2017 was unavailable. Schedule is intended to show information for 10 years. Additional years will be displayed as they become available.

Amounts presented for each fiscal year were determined as of the District's measurement date which is the prior year-end.

SEE ACCOMPANYING NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION

80

2019

0.13968400%

2018

0.15117360%

2017

0.15604927%

$	3,875,211	$

$	4,761,207	$

4,057,102

5,052,064

$	4,447,981

$	4,760,650

81.39%	80.31%	93.43%

13.57%	12.46%	11.49%

81

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

SCHEDULES OF REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF THE DISTRICT'S PROPORTIONATE SHARE OF THE NET OPEB LIABILITY/ASSET
STATE TEACHERS RETIREMENT SYSTEM (STRS) OF OHIO

LAST SEVEN FISCAL YEARS

2023	2022	2021	2020

District's proportion of the

net OPEB liability/asset	0.14526029%	0.14624682%	0.14467771%	0.14295751%

District's proportionate share of the net OPEB liability/(asset)

District's covered payroll

$	(3,761,272)	$

$	18,662,814	$

(3,083,495)	$

18,159,957	$

(2,542,710)	$

17,582,221	$

(2,367,719)

16,914,686

District's proportionate share of the

net OPEB liability/asset as a percentage of its covered payroll

Plan fiduciary net position as a percentage of the total OPEB liability/asset

20.15%

230.73%

16.98%

174.73%

14.46%

182.10%

14.00%

174.70%

Note: Information prior to 2017 was unavailable. Schedule is intended to show information for 10 years. Additional years will be displayed as they become available.

Amounts presented for each fiscal year were determined as of the District's measurement date which is the prior year-end.

SEE ACCOMPANYING NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION

82

2019

0.13894386%

2018

0.14425203%

2017

0.14569108%

$	(2,232,686)	$

$	16,532,179	$

5,628,182

15,913,564

$	7,791,597

$	15,385,029

13.51%	35.37%	50.64%

176.00%	47.10%	37.33%

83

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

SCHEDULES OF REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF DISTRICT OPEB CONTRIBUTIONS SCHOOL EMPLOYEES RETIREMENT SYSTEM (SERS) OF OHIO

LAST TEN FISCAL YEARS

2023	2022	2021	2020

Contractually required contribution	$	73,444	$	87,780	$	86,285	$	74,683

Contributions in relation to the

contractually required contribution	(73,444)	(87,780)	(86,285)	(74,683)

Contribution deficiency (excess)

District's covered payroll

$	-

$	5,546,629

$	-

$	5,109,007

$	-

$	4,708,243

$	-

$	5,049,379

Contributions as a percentage of

covered payroll	1.32%	1.72%	1.83%	1.48%

SEE ACCOMPANYING NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION

84

2019	2018	2017	2016	2015	2014

$	96,479	$	96,979	$	81,947	$	76,118	$	90,374	$	66,517

(96,479)	(96,979)	(81,947)	(76,118)	(90,374)	(66,517)

$	-

$	4,920,281

$	-

$	4,761,207

$	-

$	5,052,064

$	-

$	4,760,650

$	-

$	4,682,458

$	-

$	4,449,336

1.96%	2.04%	1.62%	1.60%	1.93%	1.49%

85

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

SCHEDULES OF REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF DISTRICT OPEB CONTRIBUTIONS STATE TEACHERS RETIREMENT SYSTEM (STRS) OF OHIO

LAST TEN FISCAL YEARS

2023	2022	2021	2020

Contractually required contribution	$	-	$	-	$	-	$	-

Contributions in relation to the

contractually required contribution	-	-	-	-

Contribution deficiency (excess)

District's covered payroll

$	-

$	20,298,836

$	-

$	18,662,814

$	-

$	18,159,957

$	-

$	17,582,221

Contributions as a percentage of

covered payroll	0.00%	0.00%	0.00%	0.00%

SEE ACCOMPANYING NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION

86

2019	2018	2017	2016	2015	2014

$	-	$	-	$	-	$	-	$	-	$	139,230

-	-	-	-	-	(139,230)

$	-

$	16,914,686

$	-

$	16,532,179

$	-

$	15,913,564

$	-

$	15,385,029

$	-

$	16,072,357

$	-

$	14,658,546

0.00%	0.00%	0.00%	0.00%	0.00%	1.00%

87

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION FOR THE FISCAL YEAR ENDED JUNE 30, 2023

PENSION

SCHOOL EMPLOYEES RETIREMENT SYSTEM (SERS) OF OHIO

Changes in benefit terms :

There were no changes in benefit terms from the amounts reported for fiscal year 2014. There were no changes in benefit terms from the amounts reported for fiscal year 2015. There were no changes in benefit terms from the amounts reported for fiscal year 2016. There were no changes in benefit terms from the amounts reported for fiscal year 2017.
For fiscal year 2018, SERS changed from a fixed 3% annual increase to a Cost of Living Adjustment (COLA) based on the changes in the Consumer Price Index (CPI-W), with a cap of 2.5% and a floor of 0%.
For fiscal year 2019, with the authority granted the Board under Senate Bill 8, the Board has enacted a three year COLA delay for future benefit receipients commencing benefits on or after April 1, 2018.
There were no changes in benefit terms from the amounts previously reported for fiscal year 2020. There were no changes in benefit terms from the amounts previously reported for fiscal year 2021. For fiscal year 2022, SERS changed from a Cost of Living Adjustment (COLA) of 2.5% to 2.0%. There were no changes in benefit terms from the amounts reported for fiscal year 2023.

Changes in assumptions :

There were no changes in methods and assumptions used in the calculation of actuarial determined contributions for fiscal year 2014. There were no changes in methods and assumptions used in the calculation of actuarial determined contributions for fiscal year 2015. There were no changes in methods and assumptions used in the calculation of actuarial determined contributions for fiscal year 2016. For fiscal year 2017, the following changes of assumptions affected the total pension liability since the prior measurement date: (a) the
assumed rate of inflation was reduced from 3.25% to 3.00%, (b) payroll growth assumption was reduced from 4.00% to 3.50%, (c) assumed real wage growth was reduced from 0.75% to 0.50%, (d) rates of withdrawal, retirement and disability were updated to reflect recent experience, (e) mortality among active members was updated to RP-2014 Blue Collar Mortality Table with fully generational projection and a five year age set-back for both males and females, (f) mortality among service retired members and beneficiaries was updated to the following RP-2014 Blue Collar Mortality Table with fully generational projection with Scale BB, 120% of male rates and 110% of female rates, (g) mortality among disabled members was updated to RP-2000 Disabled Mortality Table, 90% for male rates and 100% for female rates, set back five years is used for the period after disability retirement and (h) the discount rate was reduced from
7.75% to 7.50%.
There were no changes in methods and assumptions used in the calculation of actuarial determined contributions for fiscal year 2018.

There were no changes in methods and assumptions used in the calculation of actuarial determined contributions for fiscal year 2019. There were no changes in methods and assumptions used in the calculation of actuarial determined contributions for fiscal year 2020. There were no changes in methods and assumptions used in the calculation of actuarial determined contributions for fiscal year 2021. For fiscal year 2022, the following changes of assumptions affected the total pension liability since the prior measurement date: (a) wage
inflation decreased from 3.00% to 2.40%, (b) future salary increases changed from 3.50%-18.20% to 3.25%-13.58%, (c) investment rate of return decreased from 7.50% to 7.00%, (d) discount rate decreased from 7.50% to 7.00% and (e) mortality tables changed from the RP-2014 Blue Collar mortality table to the PUB-2010 General Employee Amount Weighted Below Median Healthy Retiree mortality table.

There were no changes in methods and assumptions used in the calculation of actuarial determined contributions for fiscal year 2023.

(Continued)

88

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION (CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30, 2023

PENSION (CONTINUED)

STATE TEACHERS RETIREMENT SYSTEM (STRS) OF OHIO

Changes in benefit terms :

There were no changes in benefit terms from the amounts reported for fiscal year 2014. There were no changes in benefit terms from the amounts reported for fiscal year 2015. There were no changes in benefit terms from the amounts reported for fiscal year 2016. There were no changes in benefit terms from the amounts reported for fiscal year 2017. For fiscal year 2018, STRS decreased the Cost of Living Adjustment (COLA) to zero.
There were no changes in benefit terms from amounts previously reported for fiscal year 2019. There were no changes in benefit terms from amounts previously reported for fiscal year 2020. There were no changes in benefit terms from amounts previously reported for fiscal year 2021. There were no changes in benefit terms from amounts previously reported for fiscal year 2022. There were no changes in benefit terms from amounts previously reported for fiscal year 2023.

Changes in assumptions :

There were no changes in methods and assumptions used in the calculation of actuarial determined contributions for fiscal year 2014. There were no changes in methods and assumptions used in the calculation of actuarial determined contributions for fiscal year 2015. There were no changes in methods and assumptions used in the calculation of actuarial determined contributions for fiscal year 2016. There were no changes in methods and assumptions used in the calculation of actuarial determined contributions for fiscal year 2017. For fiscal year 2018, the following changes of assumption affected the total pension liability since the prior measurement date: (a) the long-
term expected rate of return was reduced from 7.75% to 7.45%, (b) the inflation assumption was lowered from 2.75% to 2.50%, (c) the payroll growth assumption was lowered to 3.00%, (d) total salary increases rate was lowered by decreasing the merit component of the individual salary increases, in addition to a decrease of 0.25% due to lower inflation, (e) the healthy and disabled mortality assumptions were updated to the RP-2014 mortality tables with generational improvement scale MP-2016 and (f) rates of retirement, termination and
disability were modified to better reflect anticipated future experience.
There were no changes in methods and assumptions used in the calculation of actuarial determined contributions for fiscal year 2019. There were no changes in methods and assumptions used in the calculation of actuarial determined contributions for fiscal year 2020. There were no changes in methods and assumptions used in the calculation of actuarial determined contributions for fiscal year 2021. For fiscal year 2022, the following changes of assumption affected the total pension liability since the prior measurement date: (a) the long-

term expected rate of return was reduced from 7.45% to 7.00% and (b) the discount rate of return was reduced from 7.45% to 7.00%.

For fiscal year 2023, the following changes of assumption affected the total pension liability since the prior measurement date: (a) the projected salary increases went from 12.50% at age 20 to 2.50% at age 65 to varies by service from 2.50% to 8.50%.

OTHER POSTEMPLOYMENT BENEFITS (OPEB)

SCHOOL EMPLOYEES RETIREMENT SYSTEM (SERS) OF OHIO

Changes in benefit terms :

There were no changes in benefit terms from the amounts reported for fiscal year 2017. There were no changes in benefit terms from the amounts reported for fiscal year 2018. There were no changes in benefit terms from the amounts reported for fiscal year 2019. There were no changes in benefit terms from the amounts reported for fiscal year 2020. There were no changes in benefit terms from the amounts reported for fiscal year 2021. There were no changes in benefit terms from the amounts reported for fiscal year 2022. There were no changes in benefit terms from the amounts reported for fiscal year 2023.

(Continued)

89

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION (CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30, 2023

OTHER POSTEMPLOYMENT BENEFITS (OPEB) (CONTINUED)

SCHOOL EMPLOYEES RETIREMENT SYSTEM (SERS) OF OHIO (CONTINUED)

Changes in assumptions :

For fiscal year 2017, the following changes of assumptions affected the total OPEB liability since the prior measurement date: (a) assumed rate of inflation was reduced from 3.25% to 3.00%, (b) payroll growth assumption was reduced from 4.00% to 3.50%, (c) assumed real wage growth was reduced from 0.75% to 0.50%, (d) rates of withdrawal, retirement, and disability were updated to reflect recent experience, (e) mortality among active members was updated to the following: RP-2014 Blue Collar Mortality Table with fully generational projection and a five-year age set-back for both males and females, (f) mortality among service retired members and beneficiaries was updated to the following: RP-2014 Blue Collar Mortality Table with fully generational projection with Scale BB, 120% of male rates, and 110% of female rates, (g) mortality among disabled members was updated to the following: RP-2000 Disabled Mortality Table, 90% for male rates and 100% for female rates, set back five years is used for the period after disability retirement.

For fiscal year 2018, the following changes of assumptions affected the total OPEB liability since the prior measurement date: (a) assumed rate of inflation was reduced from 3.25% to 3.00%, (b) payroll growth assumption was reduced from 4.00% to 3.50%, (c) assumed real wage growth was reduced from 0.75% to 0.50%, (d) rates of withdrawal, retirement, and disability were updated to reflect recent experience, (e) mortality among active members was updated to the following: RP-2014 Blue Collar Mortality Table with fully generational projection and a five-year age set-back for both males and females, (f) mortality among service retired members and beneficiaries was updated to the following: RP-2014 Blue Collar Mortality Table with fully generational projection with Scale BB, 120% of male rates, and 110% of female rates, (g) mortality among disabled members was updated to the following: RP-2000 Disabled Mortality Table, 90% for male rates and 100% for female rates, set back five years is used for the period after disability retirement, (h) the municipal bond index rate increased from 2.92% to 3.56% and (i) the single equivalent interest rate, net of plan investment expense,
including price inflation increased from 2.98% to 3.63%.
For fiscal year 2019, the following changes of assumptions affected the total OPEB liability since the prior measurement date: (a) the

discount rate increased from 3.63% to 3.70%, (b) the health care cost trend rates for Medicare were changed from a range of 5.50%-5.00% to a range of 5.375%-4.75% and Pre-Medicare were changed from a range of 7.50%-5.00% to a range of 7.25%-4.75%, (c) the municipal bond index rate increased from 3.56% to 3.62% and (d) the single equivalent interest rate, net of plan investment expense, including price inflation increased from 3.63% to 3.70%.
For fiscal year 2020, the following changes of assumptions affected the total OPEB liability since the prior measurement date: (a) the

discount rate decreased from 3.70% to 3.22%, (b) the health care cost trend rates for Medicare were changed from a range of 5.375%-4.75% to a range of 5.25%-4.75% and Pre-Medicare were changed from a range of 7.25%-4.75% to a range of 7.00%-4.75%, (c) the municipal bond index rate decreased from 3.62% to 3.13% and (d) the single equivalent interest rate, net of plan investment expense, including price inflation decreased from 3.70% to 3.22%.
For fiscal year 2021, the following changes of assumptions affected the total OPEB liability since the prior measurement date: (a) the

discount rate decreased from 3.22% to 2.63% and (b) the municipal bond index rate decreased from 3.13% to 2.45%, and (c) the single equivalent interest rate, net of plan investment expense, including price inflation decreased from 3.22% to 2.63%.
For fiscal year 2022, the following changes of assumptions affected the total OPEB liability since the prior measurement date: (a) wage inflation decreased from 3.00% to 2.40%, (b) future salary increases changed from 3.50%-18.20% to 3.25%-13.58%, (c) investment rate of return decreased from 7.50% to 7.00%, (d) discount rate decreased from 7.50% to 7.00% and (e) mortality tables changed from the RP-2014 Blue Collar mortality table to the PUB-2010 General Employee Amount Weighted Below Median Healthy Retiree mortality table.

For fiscal year 2023, the following changes of assumptions affected the total OPEB liability since the prior measurement date: (a) municipal bond index rate went from 1.92% to 3.69%, (b) single equivalent interest rate when from 2.27% to 4.08% and (c) medical trend assumptions went from 5.125% to 4.40% Medicare and 6.75% to 4.40% Pre-Medicare to 7.00% to 4.40%.

(Continued)

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INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION (CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30, 2023

OTHER POSTEMPLOYMENT BENEFITS (OPEB) (CONTINUED)

STATE TEACHERS RETIREMENT SYSTEM (STRS) OF OHIO

Changes in benefit terms :
There were no changes in benefit terms from the amounts previously reported for fiscal year 2017.
For fiscal year 2018, STRS reduced the subsidy multiplier for non-Medicare benefit recipients from 2.1% to 1.9% per year of service. Medicare Part B premium reimbursements were discontinued for certain survivors and beneficiaries and all remaining Medicare Part B premium reimbursements will be discontinued beginning January 2019.
For fiscal year 2019, STRS increased the subsidy multiplier for non-Medicare benefit recipients from 1.9% to 1.944% per year of service effective January 1, 2019. The non-Medicare frozen subsidy base premium was increased January 1, 2019 and all remaining Medicare Part B premium reimbursements will be discontinued beginning January 1, 2020.
For fiscal year 2020, STRS increased the subsidy percentage from 1.944% to 1.984% effective January 1, 2020. The Medicare subsidy percentages were adjusted effective January 1, 2021 to 2.1% for the Medicare plan. The Medicare Part B monthly reimbursement elimination date was postponed to January 1, 2021.
For fiscal year 2021, the non-Medicare subsidy percentage was increased effective January 1, 2021 from 1.984% to 2.055% per year of service. The non-Medicare frozen subsidy base premium was increased effective January 1, 2021. The Medicare subsidy percentages were adjusted effective January 1, 2021 to 2.1% for the AMA Medicare plan. The Medicare Part B monthly reimbursement elimination date
was postponed indefinitely.
For fiscal year 2022, the non-Medicare subsidy percentage was increased effective January 1, 2022 from 2.055% to 2.100%. The non-

Medicare frozen subsidy base premium was increased effective January 1, 2022. The Medicare Part D subsidy was updated to reflect it is expected to be negative in CY2022. The Part B monthly reimbursement elimination date was postponed indefinitely.
There were no changes in benefit terms from the amounts previously reported for fiscal year 2023.

Changes in assumptions :

There were no changes in methods and assumptions used in the calculation of actuarial determined contributions for fiscal year 2017. For fiscal year 2018, the following changes of assumptions affected the total OPEB liability since the prior measurement date: (a) the
discount rate was increased from 3.26% to 4.13% based on the methodology defined under GASB Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans (OPEB), (b) the long term expected rate of return was reduced from 7.75% to 7.45%, (c) valuation year per capita health care costs were updated, and the salary scale was modified, (d) the percentage of future retirees electing each option was updated based on current data and the percentage of future disabled retirees and terminated vested participants electing health coverage were decreased and (e) the assumed mortality, disability, retirement, withdrawal and future health
care cost trend rates were modified along with the portion of rebated prescription drug costs.
For fiscal year 2019, the following changes of assumptions affected the total OPEB liability/asset since the prior measurement date: (a)

the discount rate was increased from the blended rate of 4.13% to the long-term expected rate of return of 7.45% based on the methodology defined under GASB Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans (OPEB) and (b) decrease in health care cost trend rates from 6.00%-11.00% initial; 4.50% ultimate down to Medical Pre-Medicare 6.00% and Medicare 5.00% initial; 4.00% ultimate and Prescription Drug Pre-Medicare 8.00% and Medicare (5.23%) initial; 4.00% ultimate.

For fiscal year 2020, health care cost trend rates were changed to the following:medical pre-Medicare from 6.00% initial - 4.00% ultimate down to 5.87% initial - 4.00% ultimate; medical Medicare from 5.00% initial - 4.00% ultimate down to 4.93% initial - 4.00% ultimate; prescription drug pre-Medicare from 8.00% initial - 4.00% ultimate down to 7.73% initial - 4.00% ultimate and (5.23%) initial - 4.00% ultimate up to 9.62% initial - 4.00% ultimate.

(Continued)

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INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION (CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30, 2023

OTHER POSTEMPLOYMENT BENEFITS (OPEB) (CONTINUED)

STATE TEACHERS RETIREMENT SYSTEM (STRS) OF OHIO (CONTINUED)

Changes in assumptions (continued) :

For fiscal year 2021, health care cost trend rates were changed to the following:medical pre-Medicare from 5.87% initial - 4.00% ultimate down to 5.00% initial - 4.00% ultimate; medical Medicare from 4.93% initial - 4.00% ultimate down to -6.69% initial - 4.00% ultimate; prescription drug pre-Medicare from 7.73% initial - 4.00% ultimate down to 6.50% initial - 4.00% ultimate; prescription drug Medicare
from 9.62% initial - 4.00% ultimate up to 11.87% initial - 4.00% ultimate.
For fiscal year 2022, the following changes of assumption affected the total OPEB liability since the prior measurement date: (a) the long-

term expected rate of return was reduced from 7.45% to 7.00%, (b) the discount rate of return was reduced from 7.45% to 7.00% and (c) health care cost trend rates were changed to the following:medical Medicare from -6.69% initial - 4.00% ultimate down to -16.18% initial - 4.00% ultimate; prescription drug Medicare from 11.87% initial - 4.00% ultimate up to 29.98% initial - 4.00% ultimate.

For fiscal year 2023, the following changes of assumption affected the total OPEB liability since the prior measurement date: (a) projected salary increase went from 12.50% at age 20 to 2.50% at age 65 to varies by services from 2.50% to 8.50% and (b) health care cost trend rates were changed to the following: Pre-Medicare from 5.00% initial - 4.00% ultimate to 7.50% initial - 3.94% ultimate; medical Medicare from -16.18% initial - 4.00% ultimate to -68.78% initial - 3.94% ultimate; prescription drug Pre-Medicare from 6.50% initial -4.00% ultimate to 9.00% initial - 3.94% ultimate; Medicare from 29.98% initial - 4.00% ultimate to -5.47% initial - 3.94% ultimate.

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INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY

SCHEDULE OF EXPENDITURE OF FEDERAL AWARDS FOR THE YEAR ENDED JUNE 30, 2023

FEDERAL GRANTOR Pass Through Grantor
Program / Cluster Title

Assistance Listing
Number

Pass Through Entity Identifying
Number

Passed Through to
Subrecipients

Total Federal

Expenditures

U.S. DEPARTMENT OF AGRICULTURE

Passed Through Ohio Department of Education

Child Nutrition Cluster

National School Lunch Program - Lunch National School Lunch Program - Lunch Covid Food Pro Man

Non-Cash Assistance (Food Distribution):

National School Lunch Program

10.555	GRF	6,239 10.555                    3L60                                                               59,662 10.555                    3L60	4,388

10.555	3L60	20,825

Total Nutrition Cluster	91,114

Other Assistance

Pandemic EBT Administrative Costs – Covid-19	10.649	3HF0	628

Total U.S. Department of Agriculture	91,742

U.S. DEPARTMENT OF EDUCATION

Passed Through Ohio Department of Education

Title I, Part A Cluster:

Grants to Local Education Agencies (Title I)	84.010	3M00	108,176

Total Title I, Part A	108,176

Special Education Cluster:

Special Education Grants to States (IDEA part B)	84.027	3M20 Special Education Grants to States (IDEA part B)	84.027	3M20 Special Education Grants to States (ARP-IDEA part B)	84.027	3M20 ARP-IDEA Preschool Grant	84.173                    3C50
IDEA Preschool Grant	84.173	3C50

591,970 61,020 66,145 694
4,160

Total Special Education Cluster	723,989

Student Support & Academic Enrichment Title III - Immigrant
ESSER Funds

Title II-A - Improving Teacher Quality

Title II-A - Improving Teacher Quality

84.424                    3HI0 84.365                    3Y70 84.425                   3HS0 84.367                    3Y60
84.367	3Y60

9,079 7,441 539,844 7,795
42,023

Total U.S. Department of Education

Total Expenditures of Federal Awards

1,438,347

$1,530,089

The accompanying notes are an integral part of this schedule.

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INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY

NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 2 CFR 200.510(b)(6)
FOR THE YEAR ENDED JUNE 30, 2023

NOTE A – BASIS OF PRESENTATION

The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Indian Hill Exempted Village School District (the District’s) under programs of the federal government for the year ended June 30, 2023. The information on this Schedule is prepared in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the District, it is not intended to and does not present the financial position, changes in net position, or cash flows of the District.

NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards.

NOTE C – INDIRECT COST RATE

The District has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.

NOTE D - CHILD NUTRITION CLUSTER

The District commingles cash receipts from the U.S. Department of Agriculture with similar State grants. When reporting expenditures on this Schedule, the District assumes it expends federal monies first.

NOTE E – FOOD DONATION PROGRAM

The District reports commodities consumed on the Schedule at the entitlement value. The District allocated donated food commodities to the respective program that benefitted from the use of those donated food commodities.

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88 East Broad Street Columbus, Ohio 43215 ContactUs@ohioauditor.gov (800) 282-0370

INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS REQUIRED BY GOVERNMENT AUDITING STANDARDS

Indian Hill Exempted Village School District Hamilton County
6855 Drake Road Cincinnati, Ohio 45243

To the Board of Education:

We have audited, in accordance with the 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 (Government Auditing Standards), the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Indian Hill Exempted Village School District, Hamilton County, (the District) as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements and have issued our report thereon dated March 12, 2024.

Report on Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements, we considered the District’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, we do not express an opinion on the effectiveness of the District’s internal control.

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 a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the District’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.

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Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Required by Government Auditing Standards
Page 2

Report on Compliance and Other Matters

As part of obtaining reasonable assurance about whether the District’s financial statements are free from 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 financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit 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.

Purpose of This Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the District’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

March 12, 2024

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88 East Broad Street Columbus, Ohio 43215 ContactUs@ohioauditor.gov (800) 282-0370

INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO THE MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE

Indian Hill Exempted Village School District Hamilton County
6855 Drake Road Cincinnati, Ohio 45243

To the Board of Education:

Report on Compliance for the Major Federal Program

Opinion on the Major Federal Program

We have audited Indian Hill Exempted Village School District’s, Hamilton County, (District) compliance with the types of compliance requirements identified as subject to audit in the U.S. Office of Management and Budget (OMB) Compliance Supplement that could have a direct and material effect on Indian Hill Exempted Village School District’s major federal program for the year ended June 30, 2023. Indian Hill Exempted Village School District’s major federal program is identified in the Summary of Auditor’s Results section of the accompanying schedule of findings.

In our opinion, Indian Hill Exempted Village School District complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on its major federal program for the year ended June 30, 2023.

Basis for Opinion on the Major Federal Program

We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards); and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor's Responsibilities for the Audit of Compliance section of our report.

We are required to be independent of the District and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for the major federal program. Our audit does not provide a legal determination of the District's compliance with the compliance requirements referred to above.

Responsibilities of Management for Compliance

The District’s Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the District’s federal programs.

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Auditor’s Responsibilities for the Audit of Compliance

Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the District's compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the District's compliance with the requirements of the major federal program as a whole.

In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we:

	exercise professional judgment and maintain professional skepticism throughout the audit.
	 identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the District’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.
	 obtain an understanding of the District's internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the District's internal control over compliance. Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.

Report on Internal Control Over Compliance

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

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Indian Hill Exempted Village School District Hamilton County
Independent Auditor’s Report on Compliance with Requirements Applicable to the Major Federal Program and on Internal Control Over Compliance Required by the Uniform Guidance
Page 3

Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified.

Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of this testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

March 12, 2024

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INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY

SCHEDULE OF FINDINGS 2 CFR § 200.515 JUNE 30, 2023

1. SUMMARY OF AUDITOR’S RESULTS

(d)(1)(i)
	Type of Financial Statement Opinion
	Unmodified
	
(d)(1)(ii)
	Were there any material weaknesses in internal control reported at the financial statement level (GAGAS)?
	No
	
(d)(1)(ii)
	Were there any significant deficiencies in internal control reported at the financial statement level (GAGAS)?
	No
	
(d)(1)(iii)
	Was there any reported material noncompliance at the financial statement level (GAGAS)?
	No
	
(d)(1)(iv)
	Were there any material weaknesses in internal control reported for major federal programs?
	No
	
(d)(1)(iv)
	Were there any significant deficiencies in internal control reported for major federal programs?
	No
	
(d)(1)(v)
	Type of Major Programs’ Compliance Opinion
	Unmodified
	
(d)(1)(vi)
	Are there any reportable findings under 2 CFR § 200.516(a)?
	No
	
(d)(1)(vii)
	Major Programs (list):
	84.425(U)	-	Elementary	and Secondary     School	Emergency Relief Fund
	
(d)(1)(viii)
	Dollar Threshold: Type A\B Programs
	Type A: > $ 750,000 Type B: all others
	
(d)(1)(ix)
	Low Risk Auditee under 2 CFR § 200.520?
	Yes

2. FINDINGS RELATED TO THE FINANCIAL STATEMENTS REQUIRED TO BE REPORTED IN ACCORDANCE WITH GAGAS

None

3. FINDINGS AND QUESTIONED COSTS FOR FEDERAL AWARDS

None

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INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT

HAMILTON COUNTY

AUDITOR OF STATE OF OHIO CERTIFICATION

This is a true and correct copy of the report, which is required to be filed pursuant to Section 117.26, Revised Code, and whichis filed in the Office of the Ohio Auditor of State in Columbus, Ohio.

Certified for Release 3/21/2024

88 East Broad Street, Columbus, Ohio 43215 Phone: 614-466-4514 or 800-282-0370

This report is a matter of public record and is available online at www.ohioauditor.gov