INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT Hamilton County, Ohio

ANNUAL FINANCIAL INFORMATION REPORT For the Fiscal Year Ended June 30, 2023

This Annual Financial Information Report (“Annual Report”) pertains to the operations of the Indian Hill Exempted Village School District, Hamilton County, Ohio (the “School District”) for the fiscal year ended June 30, 2023. This Annual Report is being filed to satisfy the School District’s obligations to provide annual financial information and operating data in compliance with the continuing disclosure requirements of Rule 15c2-12 (the “Rule”) promulgated under the Securities Exchange Act of 1934. Specifically, the information in this Annual Report is provided in accordance with the continuingdisclosure undertakings entered into by the School District pursuant to the Rule in connection with the following outstanding obligations of the School District:

$13,940,000 School Improvement Bonds, Series 2016, dated September 14, 2016. Final Maturity is December 1, 2027.

$71,450,000 School Facilities Construction and Improvement Bonds, Series 2021, dated August 12, 2021. Final Maturity is December 1, 2051.

The School District’s applicable base CUSIP number is 454272.

Questions regardinginformation contained in this AnnualReportshould be directedto:MickDavis, Treasurer, Indian Hill Exempted Village School District, 6855 Drake Road, Cincinnati, Ohio 45243; telephone: (513) 272-4500.

This Annual Report is dated March 31, 2024.

19173087v1

TABLE OF CONTENTS

REGARDING THIS ANNUAL FINANCIAL INFORMATION STATEMENT........................................1 GENERAL INFORMATION .......................................................................................................................3 Actual and Projected Enrollment...............................................................................................................3 GENERAL FUND AND FINANCIAL OUTLOOK....................................................................................3 AD VALOREM PROPERTY TAXES.........................................................................................................4 Assessed Valuation....................................................................................................................................4 Largest Taxpayers .....................................................................................................................................5 Overlapping Governmental Entities..........................................................................................................6 Tax Rates...................................................................................................................................................7 History of Voted Taxes .............................................................................................................................9 Property Tax Collections...........................................................................................................................9 Delinquencies..........................................................................................................................................10 STATE SCHOOL FUNDING SYSTEM....................................................................................................11 SCHOOL DISTRICT DEBT AND OTHER LONG-TERM OBLIGATIONS ..........................................12 Security for General Obligation Debt; Bonds and BANs........................................................................13 Statutory Direct Debt Limitations...........................................................................................................14 Indirect Debt and Unvoted Property Tax Limitations.............................................................................15 Debt Outstanding.....................................................................................................................................16 Bond Anticipation Notes.........................................................................................................................16 Bond Retirement Fund ............................................................................................................................17 Future Financings....................................................................................................................................17 Long-Term Financial Obligations Other Than Bonds and Notes............................................................17 Financial Reports and Audits..................................................................................................................19 Retirement Expenses...............................................................................................................................19
DEBT TABLE A – Principal Amounts of Outstanding General Obligation (GO) Debt;

Leeway for Additional Debt Service within Direct Debt Limitations (a)..................................DT-A-1

DEBT TABLE B – Various School District and

Overlapping GO Debt Allocations (Principal Amounts) ...........................................................DT-B-1

DEBT TABLE C – Projected Debt Charges Requirements on School District GO Debt..................DT-C-1 DEBT TABLE D – Outstanding GO Bonds ......................................................................................DT-D-1
APPENDIX A
Historical Revenues and Expenditures General Fund
(Fiscal Years 2019 through 2023 and Forecasted Fiscal Year 2024)................................................A-1

APPENDIX B-1
Financial Report (Cash Basis All-Funds Summary) for
Fiscal Year 2023................................................................................................................................B-1

i

19173087v1

APPENDIX B-2
Financial Report (Cash Basis All-Funds Summary) for
Fiscal Year 2022................................................................................................................................B-2

APPENDIX C

Audited Financial Statements for the Fiscal Year Ending June 30, 2023.........................................C-1

APPENDIX D

Five-Year Forecast............................................................................................................................D-1

Notes and Assumptions to the Five-Year Forecast ...........................................................................D-2

ii

19173087v1

REGARDING THIS ANNUAL FINANCIAL INFORMATION STATEMENT

This Annual Financial Information Report (“Annual Report”) does not constitute an offering of any security of the Indian Hill Exempted Village School District, Hamilton County, Ohio (the “School District”)

The information herein is subject to change without notice. The delivery of this Annual Report shall not create any implication that there has been no change in the affairs of the School District since the date hereof.

While the School District or its representatives have reviewed this Annual Report for accuracy, no other federal, state, municipal, or other governmental entity, agency, or instrumentality (including, but not limited to, the Securities and Exchange Commission (“SEC”) and the Municipal Securities Rulemaking Board (“MSRB”)) has passed, or been asked to pass, upon the accuracy or adequacy of this Annual Report and the information contained herein.

This Annual Report, which includes all appendices and exhibits hereto, has been prepared by the School District pursuant to the continuing disclosure undertakings entered into by the School District in compliance with Rule 15c2-12 (the “Rule”), promulgated under the Securities Exchange Act of 1934, for certain outstanding obligations of the School District. Certain information contained herein may not be required to be supplied under the Rule, and the School District is under no obligation to continue to provide any such additional information in the future.

This Annual Report is not sufficient to base an investment decision on but should be read in conjunction with the original offering document and all subsequent updates. Other relevant information may exist for the fiscal year to which this Annual Report pertains, and matters may have occurred or become known during or since that period that an investor would consider to be important when makingan investment decision. The inclusion ofcertain information, if any, that may pertain to events that have occurred subsequent to the fiscal year to which this Annual Report pertains is provided solely for convenience, and any such information is not intended to suggest that other such information not so included is any less material or important to an investor.

All financial and other information presented in this Annual Report has been provided by the School District from its records, except for information expressly attributed to other sources. The presentation of information, including tables of receipts from taxes and other sources, is intended to show recent historic information, and is not intended to indicate future or continuing trends in the financial position or other affairs of the School District. No representation is made that past experience, as is shown by financial and other information, will necessarily continue or be repeated in the future, and no representation is made as to the materiality or completeness of that information.

Insofar as the statements contained in this Annual Report involve matters of opinion, projections, or estimates, even if not expressly stated as such, such statements are made as such and not as representations of fact or certainty, no representation is made that any of such statements have been or will be realized, and such statements should be regarded as suggesting independent investigation or consultation of other sources prior to the making of investment decisions. Certain information may not be current; however, attempts were made to date and document sources of information.

Certain information in this Annual Report may be attributed to the Ohio Municipal Advisory Council (“OMAC”). OMAC compiles information from official and other sources. OMAC believes the information that it compiles is accurate and reliable, but OMAC does not independently confirm or verify the information and does not guarantee its accuracy. OMAC has not reviewed this Annual Report to confirm that any such information attributed to it is information provided by OMAC or for any other purpose.

Any CUSIP numbers contained herein have been provided by CUSIP Global Services, which is managed on behalf of the American Bankers Association (“ABA”) by FactSet Research Systems Inc. CUSIP is a registered trademark of the ABA. Any such CUSIP numbers are provided solely for convenience. The School District is not responsible for the selection or use of any such CUSIP numbers and does not undertake any responsibility for their

1

19173087v1

accuracy now or at any time in the future. CUSIP numbers are subject to being changed as a result of subsequent actions and events.

References herein to provisions of Ohio law, whether codified in the Ohio Revised Code (the “Revised Code”) or uncodified, or tothe provisions of the OhioConstitution or the School District’sresolutions, are references to such provisions as they presently exist. Any of these provisions may from time to time be amended, repealed or supplemented.

As used in this Annual Report, “State” or “Ohio” means the State of Ohio. Additional information concerning this Annual Report is available from Mick Davis, Treasurer, Indian Hill Exempted Village School District, 6855 Drake Road, Cincinnati, Ohio 45243.

[Remainder of Page Intentionally Left Blank]

2

19173087v1

GENERAL INFORMATION

Actual and Projected Enrollment

The School District’s daily average enrollments for past and current school years, together with projected enrollments for future school years, are shown below.

Actual and Projected Enrollment Indian Hill Exempted Village School District

Grade

K 1 2 3 4 5 6 7 8 9
10 11 12
Other

Totals

* Projected.

2019-20

150 158 148 176 176 165 154 193 192 146 158 153 163 3

2,135

2020-21

161 153 167 164 183 175 172 154 192 177 152 156 156 2

2,164

2021-22

153 171 156 157 158 182 177 171 158 163 178 154 147 4

2,129

2022-23

160 166 182 161 158 164 187 181 177 154 165 174 155 1

2,185

2023-24

148 172 173 189 174 161 169 196 186 159 156 161 176 1

2,221

2024-25*

155 158 181 177 192 176 166 170 197 172 162 159 164 5

2,234

2025-26*

154 165 168 184 182 191 181 168 175 181 175 164 158 5

2,251

2026-27*

155 164 175 174 188 183 193 182 173 170 182 175 165 5

2,284

Source: School District

GENERAL FUND AND FINANCIAL OUTLOOK

The General Fund is the School District’s main operating fund, from which most expenditures are paid and into which most revenues are deposited. The General Fund receives moneys from many sources, but primarily from the ad valorem property taxes levied by the Board and education aid distributions from the State For details concerning general operating fund revenues, expenditures and beginning and year-end balances in Fiscal Year 2023 and/or other recent Fiscal Years, see Ad Valorem Property Taxes, State School Funding System, and Appendices A, B and C.

Otherthan its authoritytolevyad valorempropertytaxes, the onlytax theBoard mayunderexisting State law impose, and only if approved by the School District’s electors, is an income tax on (i) the school district income of individuals and estates or (ii) wages, salaries, tips and other employee compensation.

3

19173087v1

AD VALOREM PROPERTY TAXES

Assessed Valuation

The following table shows the recent assessed valuations of property subject to ad valorem taxes levied by the School District.

Collection Year

2018(c) 2019 2020 2021(d) 2022 2023

Real (a)

$1,232,795,130 1,241,426,980 1,248,278,170 1,352,653,950 1,363,512,020 1,378,845,510

Public Utility (b)

$12,079,330 12,874,240 15,049,600 16,168,030 17,345,760 17,780,340

Total Assessed Valuation

$1,244,874,460 1,254,301,220 1,263,327,770 1,368,821,980 1,380,857,780 1,396,625,850

(a)	Other than real property of railroads. The real property of public utilities, other than railroads, is assessed by the Hamilton County Auditor. Real property of railroads is assessed, together with tangible personal property of all public utilities, by the State Tax Commissioner.
(b)	Tangible personal property of all public utilities and real property of railroads; see footnote (a). (c)	Reflects sexennial reappraisal.
(d)	Reflects triennial update.

Source: Hamilton County Auditor.

Taxescollected on “Real”in one calendaryearare levied in the precedingcalendaryearon assessed values as of January 1 of that preceding year. “Public Utility” (real and tangible personal) taxes collected in one calendar year are levied in the preceding calendar year on assessed values determined as of December 31 of the second year preceding the tax collection year.

4

19173087v1

Largest Taxpayers

The following tables list the largest real estate and public utility taxpayers in the School District. Percentages of total assessed valuation are based on a total assessed valuation of $1,396,625,850 for collection year 2023.

Largest Taxpayers
Indian Hill Exempted Village School District (2023 Collection Year)

Real Estate Taxpayers

Name

GA HC Reit II Seasons CCRC LLC Galbraith North Realty Company LLC BRE DDRCrockodile Sycamore Plaza LLC Kenwood Pavilion 14 A LLC
Kenwood Mall LLC Duke Energy Ohio Inc.
Kenwood Land Acquisition LLC Nisbet Property Holdings
The Camargo Club
Viking Partners Kenwood LLC

Public Utility Taxpayers

Name

Duke Energy Ohio Inc.

Source: Hamilton County Auditor

Type of Business

Real Estate Real Estate Shopping Plaza Real Estate Shopping Mall Utility Holding Real Estate Real Estate Golf Course Real Estate

Type of Business

Electric/Natural Gas Utility

Assessed Valuation

$10,052,220 9,487,890 8,290,260 7,489,810 5,792,960 5,746,480 5,383,890 4,714,000 4,211,860 3,745,000

Assessed Valuation

$17,780,340

Percent of School District’s Total Assessed Valuation

0.73% 0.69 0.60 0.54 0.42 0.42 0.39 0.34 0.31 0.27

Percent of School District’s Total Assessed Valuation

1.29%

Pursuant to statutory requirements for sexennial reappraisals, in 2020, the Hamilton County Auditor adjusted the true value of taxable real property to reflect then current fair market values. Those adjustments were first reflected in the duplicate for tax year 2020 (collection year 2021) and in the ad valorem taxes distributed to the School District in 2021. The County Auditor is required to adjust (but without individual appraisal of propertiesexcept in the sexennial reappraisal), and has adjusted, taxable real property value triennially to reflect true values. The County Auditor last undertook such a triennial adjustment in 2017. The results of that adjustment were first reflected in the duplicate for tax year 2017 (collection year 2018) and in the ad valorem taxes distributed to the School District in 2018.

The “assessed valuation” of real property is fixed at 35% of true value and is determined pursuant to rules of the State Tax Commissioner. An exception is that real property devoted exclusively to agricultural use is to be assessed at not more than 35% of its current agricultural use value. Real property devoted exclusively to forestry or timber growing is taxed at 50% of the local tax rate upon its assessed value.

5

19173087v1

As a result of the phase-out of taxation of tangible personal property used in general business (excluding certain public utility property) and tangible personal property used by telephone, telegraph or interexchange telecommunications companies, and thereduction of the percentages of true value of electric utility production equipment and natural gas utility property assessed for taxation, eligible school districts have received reimbursement payments from the State to account for the loss of property tax revenue. Such reimbursements have been combines and are to be distributed by the State in November and may of each Fiscal Year. According to the Ohio Department of Education and Workforce, the School District did not receive such reimbursement in Fiscal Year 2023.

As indicated herein, the General Assembly has from time to time exercised its power to revise the laws applicable to the determination of assessed valuation of taxable property and the amount of receipts to be produced by ad valorem taxes levied on that property, and may continue to make similar revisions.

Ohio law grants tax credits to offset increases in taxes resulting from increases in the true value of real property. Legislation classifies real property as between residential and agricultural property and all other real property, and provides for tax reduction factors to be separately computed for and applied to each class. These tax credits apply only to certain voted levies on real property, and they do not apply to unvoted levies or to voted levies to provide a specified dollar amount or to pay debt charges on general obligation debt. These credits are discussed further following Tax Table A.

Overlapping Governmental Entities

The major political subdivisions or other governmental entities that overlap all or a portion of the territory of the School District are listed below. The “(%)” figure is that approximate percentage of a recent assessed valuation of the overlapping entity that is located within the School District.

•	The County (functions allocated to counties by Ohio law, such as elections, health and human services, and judicial). (6.33%)

•	The Cities of the Village of Indian Hill (99.44%), Madeira (2.19%), and Milford (0.29%) (municipal corporation responsibilities).

•	The Village of Terrace Park (0.02%) (limited functions allocated to villages).

•	Townships of Columbia (0.06%), Sycamore (43.55%) and Symmes (9.24%) (limited functions allocated to townships by Ohio law).

•	Great Oakes Career Center (the Career Center) (vocational education program). (6.19%)

•	Cincinnati and Hamilton CountyPort Authority(public port facilities in the Cincinnati port and economic development activities). (6.33%)

•	Cincinnati-Hamilton County Public Library District (public library). (6.33%)

•	Hamilton County Park District (park and recreation areas). (6.33%)

•	Little Miami Joint Fire and Rescue District. (0.04%)

Source: Ohio Municipal Advisory Council.

Each of these entities operates independently, with its own separate budget, taxing power and sources of revenue. Only the County, the Cities, the Villages, the Townships and the Career Center may,

6

19173087v1

as may the School District, levy ad valorem property taxes within the ten-mill limitation (subject to available statutory allocation of the 10 mills) described under Indirect Debt and Unvoted Property Tax Limitations.

Tax Rates

All references to tax rates under this caption are in terms of stated rates in mills per $1.00 of assessed valuation.

The following are the rates at which the School District and overlapping taxing subdivisions have in recent years levied ad valorem property taxes.

TAX TABLE A Overlapping Tax Rates

Collection Year

2019 2020 2021 2022 2023

School
District	City

44.37	0.96 44.30	0.96 44.30	0.96 49.53	0.96 49.53	0.96

Career	County and
Center	Others(a)	Total

2.70	24.17	72.20 2.70	24.17	72.13 2.70	24.17	72.13 2.70	24.88	78.07 2.70	25.26	78.45

(a) In addition to County, includes Hamilton County Park District and Cincinnati-Hamilton County Public Library. Source: Hamilton County Auditor.

Statutory procedures limit, by the application of tax credits, the amount realized by each taxing subdivision from real property taxation to the amount realized from those taxes in the preceding year plus both:

•	the proceeds of any new taxes (other than renewals) approved by the electors, calculated to produce an amount equal to the amount that would have been realized if those taxes had been levied in the preceding year; and

•	amounts realized from new and existing taxes on the assessed valuation of real property added to the tax duplicate since the preceding year.

These procedures were instituted initially in 1976 to limit in part the effect of increasing property values due to appreciation on the growth of those property taxes.

The tax credit provisions do not apply to amounts realized from (i) taxes levied at whatever rate is required to produce a specified amount or an amount to pay debt charges on voted general obligations, (ii) taxes levied inside the ten-mill limitation or inside applicable municipal charter tax rates (such as those of the City), or (iii) School District levies for operating purposes once the “twenty-mill floor” has been reached. To calculate the limited amount to be realized, a reduction factor is applied to the stated rates of the levies subject to these tax credits. A resulting “effective tax rate” reflects the aggregate of those reductions, and is the rate based on which real property taxes are in fact collected. As an example, the total overlapping tax rate for the 2023 tax collection year of 78.45 mills within School District (within the City) is reduced by reduction factors of 0.381247 for residential/agricultural property and 0.346156 for all other real property, which resulted in “effective rates” of 48.541177 mills for residential and agricultural property and 51.294067 mills for all other real property. See Tax Table A.

7

19173087v1

Residentialand agriculturalrealpropertytax amounts are generallyfurtherreduced byan additional 10% (12.5% in the case of owner-occupied residential property); however, legislation passed by the State’s General Assembly in 2013 eliminated such reductions for additional and replacement levies approved at elections after September 29, 2013, and for other taxes (or increases in taxes) not levied for tax year 2013. See Ad Valorem Property Taxes – Collections for a discussion of the reimbursement by the State to taxingsubdivisions forthese reductions and related changesmadebyStatelegislation passedbytheGeneral Assembly in 2013. The School District’s existing voter-approved property taxes for current expenses and emergency requirements were not affected by this legislation because they were initially approved prior to September 29, 2013.

The following are the rates at which the School District levied property taxes for the general categories of purposes for the years shown, both inside and outside the ten-mill limitation.

TAX TABLE B School District Tax Rates

Unvoted (inside the 10-Mill Limitation

Collection Year

2018 2019 2020 2021 2022 2023

Total, all Operating

6.41 6.41 6.41 6.41 6.41 6.41

Collection Year

2018 2019 2020 2021 2022 2023

Operating

36.51 36.51 36.51 36.51 38.97 38.97

Voted

Debt Retirement	Total

3.24	39.75 1.45	37.96 1.38	37.89 1.38	37.89 4.15	43.12 4.15	43.12

The voted levies for “Debt Retirement” continue for the life of the bonds authorized by the voters, in annual amounts sufficient to pay debt charges on those bonds as they come due.

The total School District operating millage of 45.38 mills for collection year 2023 includes 38.97 in votedlevies, of which 36.51 millswere approved bythe School District electorate fora continuingperiod of time and which do not require a renewal vote. The other 2.46 mills of voted operating millage consists of a five-year, 2.46 mill current expense levy that will be collected through tax year 2025 (collection year 2026). The remaining balance of 6.41 mills constitutes a portion of the School District’s mandated share of the unvoted 10 mills.

See the discussion of the ten-mill limitation, and the priority of claim on that millage for debt chargeson unvoted generalobligation debt, under IndirectDebtandUnvoted Property TaxLimitations.

8

19173087v1

History of Voted Taxes

The table below provides the history of voted taxes in the School District since 1992. Issues identified in bold were passed by the voters.

Election Date

05/04/2021

11/07/2000 05/04/1993 11/03/1992
11/03/1992

History of Voted Taxes

Indian Hill Exempted Village School District

Levy or Bond Issue Description

$77,000,000 Bond Issue and 2.46 Mills Current Expense Levy (New – 5 years)

$49,600,000 Bond Issue

2.13 Mills Current Expense Levy (New – 5 years) $1,700,000 Bond Issue
5.10 Mills Current Expense Levy (New – 3 years)

Voting	Voting For              Against

55.55%	44.45%

53.90	46.10 61.16	38.84 37.21	62.79
47.85	52.15

Source: Ohio Municipal Advisory Council

The School District anticipates asking the voters to renew the five-year, 2.46 mill current expense levy being collected through tax year 2025 (collection year 2026) prior to its expiration.

Property Tax Collections

The following are the amounts billed and collected for School District ad valorem real and public utility property taxes for the tax collection years shown.

Collection Year

Current Billed

Current Collected

Current % Collected

Delinquent
Current	Accumulated

2018	$32,087,705 2019                 30,015,490 2020                 30,320,821 2021                 31,448,183 2022                 39,424,805 2023                 39,505,359

$31,628,369	98.57% 29,479,149	98.21 29,731,777	98.06 30,652,451	97.47 38,524,085	97.72 38,513,083	97.49

$778,534 644,766 793,694 681,522 891,384 937,942

$712,298 677,350 1,210,074 1,095,484 1,236,165 1,320,207

Source: Hamilton County Auditor

Included in the “Current Billed” and “Current Collected” figures above are payments made from State revenue sources under two Statewide real property tax relief programs – the Homestead Exemption and the Property Tax Rollback Exemption. Homestead Exemptions have been available for (i) persons 65 years of age or older, (ii) persons who are totally or permanently disabled and (iii) surviving spouses of persons who were totally or permanently disabled or 65 years of age or older, and had applied and qualified for a reduction of property taxes in the year of death, so long as the surviving spouses were not younger than 59 or older than 65 years of age on the date of their deceased spouses’ deaths. The Homestead Exemption exempts $25,000 of the homestead’s market value from taxation, thereby reducing the property owner’s ad valorem property tax liability. The Homestead Exemption also provides a $50,000 reduction in a homestead’s market value available to (a) disabled veterans or (b) the surviving spouse of a public service officer, which includes police officers, firefighters, and other first responders, who died in the line of duty or as a result of an injury or illness sustained in the line of duty. The Property Tax Rollback Exemption applies to all non-business properties, and reduces each property owner’s ad valorem property tax liability by either 12.5% (for owner-occupied non-business properties) or 10% (for non-owner non-business

9

19173087v1

occupied properties). Payments to taxing subdivisions have been made in amounts approximately equal to the Homestead and PropertyTax RollbackExemptionsgranted. This State assistancereflectedinthe School District’s tax collections for 2023 was $121,634 for the elderly/disabled homestead payment and $3,435,814 for the rollback payment.

The Homestead Exemption became subject to means testing beginning in 2014, and the Property Tax Rollback Exemption and related reimbursements have been eliminated with respect to new or replacement tax levied approved at elections after September 29, 2013, and for other taxes (or increases in taxes) not levied for tax year 2013. See Tax Rates.

Real property taxes are payable in two installments, the first usually by February and the second in July.

Delinquencies

The following is a general description of delinquency procedures under Ohio law, the implementation of which may vary in practice among the counties.

Under the Revised Code, taxes levied on property become a lien of the State on the first day of January, annually, and that lien continues until the taxes, including any penalties, interest or other charges, are paid. Real estate taxes and special assessments are generally payable in two equal installments – with the first half installment due no later than January in the year following their levy and the second half installment due no later than July in the year following their levy. Current year billed taxes not paid when due are generally subject to a 10% penalty, subject to remission of on-half of the penalty if those taxes are paid within 10 days following the due date.

The property owner may execute a written delinquent tax agreement with the county treasurer to arrange a payment plan that provides for payment of tax, interest, and penalties over a period not to exceed five years. If payments are made when due under the plan, no further interest will be assessed against delinquentbalancescovered bythe plan;however,a defaultinanypayment underthe planorin thepayment of current taxes will invalidate the taxpayer’s participation in the plan. If a payment plan is not adhered to orifnone is arranged, foreclosure proceedings maybe initiated bythe county. Massforeclosure proceedings and sales are permitted after three years’ delinquency. Proceeds from delinquent property foreclosure sales become part of and are distributed as current collections to the taxing subdivisions.

In recent years, the State legislature has enacted several programs with respect to forestalling the foreclosure process or the forfeiture of property due to tax delinquency that may have the effect of delaying or eliminating the collection of certain property taxes. Notwithstanding the delayor loss of the tax revenues from those properties, an issuer of general obligation notes or bonds, such as the School District, remains obligated to pay the debt charges on those notes or bonds from the available revenues. See Security for General Obligation Debt; Bonds and BANs.

Of the 5,910 nonexempt parcels in the School District for collection year 2023, the number of delinquent parcels was 119. The total number of foreclosure proceedings was zero.

10

19173087v1

These taxpayers accounted for more than 5% of the delinquencies identified above for collection year 2023:

Taxpayer

Individual Taxpayer Individual Tax Payer Individual Tax Payer

Amount Due(a)

$110,490 60,775 48,061

(a) Includes both taxes due and penalties assessed that are owed to all overlapping taxing subdivisions, of which approximately 65% is due the School District.

STATE SCHOOL FUNDING SYSTEM

The State’s General Assembly has historically provided financial assistance to city, exempted village, local and municipal school districts as a part of its undertaking to secure a thorough and efficient system of common schools throughout the State as required by the Ohio Constitution. The levels of that financial assistance (State Education Aid) and methods used in allocating it among the school districts have been established and frequently modified in the State’s biennial budget and other legislation passed by the General Assemblyfromtime to time. As used herein, “State Budget Act” means Amended Substitute House BillNo. 110, passedbytheOhio GeneralAssemblyand signedbythe GovernoronJune30,2021, providing State appropriations for its 2021-2023 biennium (beginning July 1, 2021 through June 30, 2023) and enacting other statutory provisions.

The State Budget Act incorporates and adopts aspects of the “Fair School Funding Plan” (FSFP), a three-year, bipartisan effort by school district board members and administrators, State legislators, trade associations and other interested parties to create a funding model that would more equitably distribute money among the State’s school districts, with an emphasis on additional funds being provided by the State rather than being raised by school districts through local ad valorem property tax levies, school district income taxes or otherwise.

Under the State Budget Act, State Education Aid is estimated to be $8.9 billion in Fiscal Year 2022 and $9.3 billion in Fiscal Year 2023, increasing average per-pupil aid from $6,020 to $7,020, phased in overthe biennium. Generallyspeaking, K-12 fundingwillbe increased by$564 million, with approximately two thirds of the additional revenue going to the poorest school districts in the State and with the largest per-pupil increases, on average, going to urban school districts and the largest average percentage increases going to smaller urban school districts. It is anticipated that no school district will receive less net State Education Aid under the State Budget Act than it did in Fiscal Year 2021, and that net State Education Aid will increase for almost all school districts during the biennium, modestly in most instances.

The State Budget Act makes significant changes to the calculation and payment of State Education Aid. Under the State Budget Act, students will be funded where they are educated, instead of where they live. Students at community schools, STEM schools and those participating in a scholarship program (e.g. EdChoice, Autism Scholarship, Jon Peterson Special Needs Scholarship) and those participating in open enrollment will be directly funded at their educating entity. This change eliminates the deduction and transfer of funds from resident school districts to educating entities for those students. As a result, school districts with large numbers of students who leave through choice options would receive less State Education Aid without the inclusion of those students.

For purposes of determining the State share of the base cost of core foundation funding under the State Budget Act, an overall base cost is to be calculated for each school district using formulas to create estimated base costs of (i) direct classroom instruction, (ii) instructional and student support, (iii) school

11

19173087v1

district leadership and accountability, (iv) building leadership and operations and (v) an athletic co-curricular activities. The school district’s calculated base cost is then to be allocated between a State share and a school district share based on the school district’s “per-pupil local capacity” which is a function of its ad valorem property tax valuation per-pupil and measures of income wealth in the school district. The State share for school districts with lower ad valorem property tax valuations per pupil and/or lower income wealth per-pupil is to be larger. However, in no case is the State share of the school district’s calculated base cost to be less than five percent.

Under the core foundation funding formula, in addition to the State share described above, school districts may also receive, as applicable, State Education Aid in the form of (i) targeted assistance based on relative tax valuation and income factors and student population, (ii) a weighted amount based on six categories of disabilities for special education and related services, (iii) supplemental disadvantaged pupil impact aid based on the relative proportion of a school district’s students identified as economically disadvantaged, (iv) a weighted amount for each of three English learner categories, (v) gifted funds for identification, referral, professional development, coordinators and intervention specialists, (vi) a weighted amount for each of five career-technical categories and (vii) a weighted amount for career-technical education associated services. The amount of a school district’s State Education Aid in the form of special education, English learner, gifted and career-technical education funding is generally to be determined in the same manner as its State share of the school district’s base cost.

There can be no assurance concerning future funding levels or systems or formulae for allocation of State Education Aid or full implementation of the FSFP (the State Budget Bill did not provide for the FSFP’s contemplated six-year phase-in for funding, addressing funding only in Fiscal Years 2022 and 2023). Funding has also been subject to adjustment during a biennium. As indicated above, the General Assemblyhasthepowertomodifythe systemofState schoolfundingand hasoften exercised that authority. TheSchool District cannotpredict whether, whenorin what formanyfuture systemof State school funding will be enacted into law.

The following table presents certain information concerning State Education Aid payments to the SchoolDistrict underthe various State fundingsystems and formulaein placeforthe Fiscal Yearsindicated.

Fiscal Year

2019 2020 2021 2022 2023

State Education Aid

$1,578,309 1,680,769 1,528,097 1,548,221 1,696,322

State Education Aid as a % of General Fund Total Revenues and Other Financing Sources(a)

4.79% 4.47 4.14 3.87 3.86

State Education Aid as a % of General Fund Total Expenditures and Other Financing Uses(a)

4.36% 4.14 4.26 3.90 3.85

(a) See Appendix A for details regarding revenues and expenditures.

See Appendix A and the Fiscal Year 2023 Financial Statements for further information regarding other revenue sources for the General Fund and other operating funds.

SCHOOL DISTRICT DEBT AND OTHER LONG-TERM OBLIGATIONS

The following describes the security for general obligation debt such as the Bonds, applicable debt and ad valorem property tax limitations, and outstanding and projected bond and note indebtedness and certain other long-term financial obligations of the School District.

12

19173087v1

As used in the discussions that follow, the term “BANs” refers to notes issued in anticipation of the issuance of general obligation bonds.

The School District is not, and to the knowledge of current School District officials has not ever been, in default in the payment of debt charges on any of the bonds or notes on which the School District is obligor.

Security for General Obligation Debt; Bonds and BANs

The following describes the security for the School District’s general obligation debt.

Voted Bonds. The basic security for voted School District general obligation bonds is the authorization by the electors for the Board to levy, and its levy pursuant to constitutional and statutory requirements of, ad valorem taxes, without limitation as to rate or amount, on all real and tangible personal property subject to ad valorem taxation by the Board. These taxes are outside of the ten-mill limitation and are to be sufficient in amount to pay (to the extent not paid from other sources) as they come due the debt charges on the voted bonds (subject to the provisions of bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or transfer, and other laws relating to or affecting the rights and remedies of creditors generally; to the application of equitable principles, whether considered in a proceeding at law or in equity; to the exercise of judicial discretion; and to limitations on legal remedies against public entities).

As of June 30, 2023, the School District has $78,080,000 of voted general obligation bonds outstanding. All references to the School District’s outstanding debt exclude accretions to the value of any capital appreciation bonds.

Unvoted Bonds. The basic security for the limited amount of School District unvoted general obligation bonds (see Statutory Direct Debt Limitations) is the Board’s ability to levy, and its levy pursuant to constitutional and statutory requirements of, ad valorem taxes on all real and tangible personal property subject to ad valorem taxation by the Board, within the ten-mill limitation described below. These taxes are to be sufficient in amount to pay (to the extent not paid from other sources) as they come due the debt chargeson unvoted general obligation bonds. The law provides that the levynecessaryfordebt charges has priority over any levy for other purposes within that tax limitation; that priority may be subject to the provisions of bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or transfer, and other laws relating to or affecting the rights and remedies of creditors generally; to the application of equitable principles, whether considered in a proceeding at law or in equity; to the exercise of judicial discretion; and to limitations on legal remedies against public entities. See discussion under Indirect Debt and Unvoted Property Tax Limitations of the ten-mill limitation, and the priority of claim on it for debt changes on unvoted general obligation debt of the School District and all overlapping taxing subdivisions.

The School District has no unvoted general obligation bonds outstanding.

BANs. BANs may be retired at maturity from the proceeds of the sale of renewal notes or of the bonds anticipated by the BANs, or available funds of the School District, or a combination of these sources. While BANs are outstanding, Ohio law requires the levy of ad valorem property taxes in an amount not less than what would have been levied if bonds had been issued without the prior issuance of the BANs. That levy need not actually be collected if payment in fact is to be provided from other sources, such as the proceeds of the bonds anticipated or of renewal BANs. BANs, including renewal BANs, may be issued and outstanding from time to time up to a maximum period of 240 months from the date of issuance of the original notes. Any period in excess of five years must be deducted from the permitted maximum maturity of the bonds anticipated. Portions of the principal amount of BANs outstanding for more than five years

13

19173087v1

must be retired in amounts at least equal to, and payable not later than, those principal maturities that would have been required if the bonds had been issued at the expiration of the initial five-year period.

The School District has no outstanding BANs.

Statutory Direct Debt Limitations

The Revised Code provides two debt limitations on general obligation debt that are directly based on tax (assessed) valuation, applicable to all school districts, including the School District.

•	The net principal amount of both voted and unvoted debt of the School District, excluding “exempt debt” (discussed below), may not exceed 9% of the total tax (assessed) valuation of all property in the School District as listed and assessed for taxation, except in the case of a “special needs” school district. All of the School District’s current general obligation debt is subject to this limitation.

•	The net principal amount of unvoted debt of the School District, excluding exempt debt, may not exceed 1% of that valuation, as discussed below.

These two limitations, which are referred to as the “direct debt limitations,” may be amended from time to time by the General Assembly.

The School District’s ability to incur unvoted debt (whether or not exempt from the direct debt limitations) is also restricted by the indirect debt limitation discussed under Indirect Debt and Unvoted Property Tax Limitations.

The Revised Code provides as a general limitation that the net principal amount of general obligation debt of a school district incurred without a vote of the electors, in general, may not exceed 1% of the School District’s total tax valuation. A further general limitation, from which certain energy conservation and exempt debt (discussed below) may be excluded, is 1/10th of 1% of its total tax valuation; the School District at present has no outstanding unvoted debt subject to this limitation. School Districts may also issue unvoted general obligation debt and other debt under certain circumstances for energy conservation programs, which general obligation debt may not exceed 9/10ths of 1% of the School District’s tax valuation; the School District at present has no debt subject to that limitation. Debt charges on any unvoted debt, unless paid from other sources, must be paid from the millage levied within the ten-mill limitation, resulting in a reduction in money available for operating expenses.

Certain general obligation debt that the School District may issue is exempt from the 9%, 1/10th of 1%, 9/10ths of 1% and 1% direct debt limitations (exempt debt). Exempt debt includes, without limitation, securities issued to pay final judgments or court-approved settlements, securities issued to acquire school buses and other equipment used in transporting pupils, securities evidencing State solvency assistance loans, certain securities issued to acquire computers and related hardware and certain unvoted securities issued a school district’s share of the basic project cost and any additional funds necessary to participate in a cooperative project with the Commission under Chapter 3318 of the Revised Code that are secured by a pledge of proceeds of a school district income tax or a voted property tax levy. In addition certain debt under Section 133.06(I) of the Revised Code, is exempt from the 9% direct debt limitation. The School District has no such exempt debt outstanding.

14

19173087v1

In the calculation of debt subject to the direct debt limitations, the amount in a school district’s bond retirement fund allocable to the principal amount of nonexempt debt is deducted from gross nonexemptdebt. Withoutconsideration ofamounts in the Bond RetirementFund, and based on the principal amount of outstanding debt, and the current tax (assessed) valuation, the School District’s voted and unvoted nonexempt debt capacities are:

Additional Debt Capacity Limitation (a)	Nonexempt Debt Outstanding	Within Limitation

9%	=	$125,696,326 0.1% =	$1,393,625 0.9% =	$12,569,632 1%	=	$13,966,258

$78,080,000 0 0 0

$47,616,326 1,393,625 12,569,632 13,966,258

(a)	The School District’s current tax (assessed) valuation for purposes ofdetermining its direct debt limitations is $1,396,625,850. See the discussion above. 1,396,625,850

This is further detailed in Debt Table A.

Indirect Debt and Unvoted Property Tax Limitations

Voted general obligation debt may be issued by the School District if authorized by vote of the electors. Ad valorem taxes, without limitation as to amount or rate, to pay debt charges on voted bonds are authorized by the electors at the same time they authorize the issuance of the bonds.

General obligation debt also may be issued by the School District without a vote of the electors, but subject to the 1% and 1/10th and 9/10ths of 1% limitations discussed above unless it is exempt debt. This unvoted debt may not be issued unless the ad valorem property tax for the payment of debt charges on those bonds (or the bonds in anticipation of which BANs are issued) of the combination of overlapping taxing subdivisions including the School District resulting in the highest tax required for such debt charges, in any year is 10 mills or less per $1.00 of assessed valuation. This indirect debt limitation, the product of what is commonly referred to as the “ten-mill limitation,” is imposed by a combination of provisions of the Ohio Constitution and the Revised Code.

The ten-mill limitation is the maximum aggregate millage for all purposes that may be levied on any single piece of property by all overlapping taxing subdivisions without a vote of the electors. The 10 mills are allocated pursuant to a statutory formula among certain overlapping taxing subdivisions in the County, including the School District. For collection year 2023, the entire 10 mills was levied by the combination of the School District and taxing subdivisions overlapping portions of the School District, and the allocation of the 10 mills (sometimes referred to as the “inside millage”) was as follows: 6.41 School District, 0.96 City and 2.26 County; that allocation has remained constant for at least the last five years.

Because the School Districtis restricted in the amount ofunvoted debt it can issue, the majorimpact of the indirect debt limitation generallyresults fromthe abilityof overlappingpolitical subdivisions to issue unvoted general obligation debt in amounts that require unvoted taxes for the payment of debt charges on that debt to be levied at a rate in excess of the rates within the ten-mill limitation allocated by statutory formula to the subdivisions. The result of a subdivision having to draw on millage to pay debt charges in an amount exceeding its allocated rate within the ten-mill limitation would be to reduce the millage within the ten-mill limitation available to the overlapping subdivisions, including the inside millage then levied by the Board for operating purposes. To the best knowledge of current School District officials, no such reduction in the School District’s statutory share of inside millage has occurred since the ten-mill limitation has been in effect.

15

19173087v1

Present Ohio law requires the inside millage allocated to a taxing subdivision to be used first for the payment of debt charges on its unvoted general obligation debt, unless provision has been made for that payment from other sources, with the balance usable for other purposes. To the extent this inside millage is required for debt charges of a taxing subdivision (which may exceed the formula allocation to that subdivision), the amount that would otherwise be available to that subdivision for general fund purposes is reduced. Because the inside millage that may actually be required to pay debt charges on a subdivision’s unvoted general obligation debt may exceed the formula allocation of that millage to the subdivision, the excess reduces the amount of inside millage available to overlapping subdivisions. A law applicable to all Ohio cities and villages, however, requires that any lawfully available receipts from a municipal income tax or from voted property tax levies be allocated to pay debt charges on the municipality’s unvoted debt before the formula allocations of the inside millage to overlapping subdivisions can be invaded for that purpose.

In the case of BANsissuedin anticipation ofunvotedgeneral obligation bonds,the highest estimate of annual debt charges for the anticipated bonds is used to calculate the millage required.

The total millage theoretically required by the City, the Career Center and the County (the combination of overlapping taxing subdivisions that had issued unvoted debt then outstanding) for debt charges on their outstanding unvoted general obligation debt was estimated to be 3.56649 mills for 2023, the year of the highest potential debt charges. There thus remained 6.43351 mills within the ten-mill limitation that had yet to be allocated to debt charges and that were available to the School District and overlapping subdivisions in connection with the issuance of additional unvoted general obligation debt.

Debt Outstanding

The Debt Tables attached provide information concerning the School District’s outstanding debt represented by bonds and notes, School District and overlapping subdivisions general obligation debt allocations and debt charges on the School District’s outstanding general obligation debt. See Debt Tables.

The following table shows the principal amount of School District’s general obligation debt outstanding as of June 30 in the years shown.

Year	Total

2019	$13,580,000 2020                                            12,260,000 2021                                            88,090,000 2022                                            81,170,000 2023                                            78,080,000

Bond Anticipation Notes

None of the debt of the School District was in the form of BANs. BANs may be retired at maturity from the proceeds of the sale of renewal notes or of the bonds anticipated by the BANs, or available funds of the School District, or a combination of these sources.

16

19173087v1

Bond Retirement Fund

The Bond Retirement Fund is the fund from which the School District pays debt charges on its general obligation debt and into which money required to be applied to those payments is deposited. See Appendix B for year-end balance, receipts and disbursements for the prior two Fiscal Years for this fund. The followingtable is an unaudited summary ofBond Retirement Fund receipts anddisbursements forprior Fiscal Years

Fiscal Year

2019 2020 2021 2022 2023

Receipts (a)

$2,457,576 1,766,377 1,823,506 83,853,290 5,861,339

Disbursements (a)

$3,721,513 1,680,745 1,680,659 81,549,119 5,713,769

June 30 Balance

$1,868,708 1,954,340 2,097,187 4,401,358 4,548,928

Future Financings

The School District does not anticipate financing any additional capital projects in the next five years.

Long-Term Financial Obligations Other Than Bonds and Notes

Lease-Purchase Financing

On October 26, 2022, the Board, on behalf of the School District, entered into a Base Lease and Lease-Purchase Agreement (the “Lease”) in the amount of $10,000,000 pursuant to Revised Code Section 3313.375 with Webster Bank, National Association (the “Lessor”) for the purpose of constructing, improving, furnishing, and equipping school facilities. Under the Lease, the Lessor is leasing the Project Site and the Project Facilities (both as defined in the Lease) from the School District and subleasing the Project Facilities back to the School District. The Lease consists of 20 renewable one-year (or partial year) lease terms which run from October 26, 2022 through December 1, 2042, and expire annually at the end of the School District’s Fiscal Year (with the exception of the final lease term, which expires on December 1, 2042). The Lessor’s base leasehold interest under the Lease runs through December 1, 2047, and, if the School District were to default under the Lease, the Lessor would have the right to possess and sublease the Project Site and the Project Facilities for the duration of the base lease term ending on December 1, 2047. TheBoard’sobligation tomake base rentpayments undertheLeaseissubjectto annualappropriation by the Board and does not represent or constitute bonded indebtedness, a debt of, or a general obligation of the School District.

[Balance of Page Intentionally Left Blank]

17

19173087v1

The following schedule presents the School District’s base rent payments due under the Lease.

Base Rent Payments Under Lease Indian Hill Exempted Village School District

Calendar Year

Prior Obligations

Principal	Interest

Total Debt Service

2024	360,000.00 2025	370,000.00 2026	385,000.00 2027	400,000.00 2028	415,000.00 2029	430,000.00 2030	450,000.00 2031	465,000.00 2032	480,000.00 2033	500,000.00 2034	520,000.00 2035	540,000.00 2036	560,000.00 2037	580,000.00 2038	600,000.00 2039	625,000.00 2040	645,000.00 2041	670,000.00 2042	695,000.00

Total	$9,690,000.00

363,375.00 349,875.00 336,000.00 321,562.50 306,562.50 291,000.00 274,875.00 258,000.00 240,562.50 222,562.50 203,812.50 184,312.50 164,062.50 143,062.50 121,312.50 98,812.50 75,375.00 51,187.50 26,062.50

$4,032,375.00

723,375.00 719,875.00 721,000.00 721,562.50 721,562.50 721,000.00 724,875.00 723,000.00 720,562.50 722,562.50 723,812.50 724,312.50 724,062.50 723,062.50 721,312.50 723,812.50 720,375.00 721,187.50 721,062.50

$13,722,375.00

Source: School District

On December 10, 2020, the School District entered into an equipment lease-purchase agreement (the “Equipment Lease”) in the amount of $3,700,000 for energy conservation improvements with Capital One Public Funding, LLC. The Equipment Lease bears interest at a rate of 1.66% and the final lease payment is scheduled for December 1, 2032. As of June 30, 2022, the aggregate of the remaining payments due under the Equipment Lease was $3,135,000. The amounts due under the Equipment Lease are not considered debt and payments are subject to annual appropriation by the Board of Education.

On July 10, 2019, the School District entered into a capital lease agreement (the “Capital Lease”) in the amount of $472,858 providing for the leasing and eventual acquisition of school buses. The Capital Lease bears interest at a rate of 3.78% and the final lease payment is scheduled for August 15, 2023. The lease was paid in full.

The School District has no other long-term financial obligations, other than the bonds and lease purchase obligations described above, the retirement obligations and net pension liability described under Retirement Expenses and the compensated absences (for vacation and sick pay) obligations identified in the Notes to the School District’s audited Basic Financial Statements for Fiscal Year 2023.

18

19173087v1

Financial Reports and Audits

The School District maintains its accounts, appropriations and other fiscal records in accordance with theprocedures established and prescribedbytheOhio Auditorof State (the “StateAuditor”).The State Auditor is charged by law with the responsibility of inspecting and supervising the accounts and records of each taxing subdivision and most public agencies and institutions.

School District receipts and expenditures are compiled on a cash basis, pursuant to accounting procedures prescribed by the State Auditor that are generally applicable to all Ohio school districts. The records of these cash receipts and expenditures are converted annually for reporting purposes to a modified accrual basis of accounting for governmental funds and an accrual basis for proprietary funds. These accounting procedures conform to generally accepted accounting principles as prescribed by the Governmental Accounting Standards Board (GASB). Those principals, among other things, provide for a modified accrual basis of accounting for the general fund, all special revenue funds and the debt service (bond retirement) fund, for a full accrual basis of accounting for all other funds, and for the preparation for each fund balance sheets, statements of revenues and expenditures and statements showing changes in fund balance.

Audits are made by the State Auditor, or by private auditing firms (CPAs) at the direction of that officer, pursuant to Ohio law and under certain federal program requirements. No other independent examination or audit of the School District’s financial records is made.

TheFiscal Year2023financial statements are currentlybeingreviewed bythe StateAuditor. Those audited financial statements will be filed after they have been released by the State Auditor.

Annual financial reports are prepared by the School District and are filed as required by law with the State Auditor after the close of each Fiscal Year.

See Appendix A for an unaudited comparative cash-basis summary of general operating fund activity for the last five Fiscal Years and forecasted for Fiscal Year 2023. That summary has been prepared from the School District’s five-year forecast information. The latest five-year financial forecast was approved by the Board in November 2022. See Appendix D for the Five-Year Forecast. All funds receipts and expenditures (on a cash basis) for the two prior Fiscal Years are set forth in Appendix B.

The audited financial statements are public records, no consent to their inclusion is required, and no bring-down procedures have been undertaken by the State Auditor since their date.

Retirement Expenses

Present and retired employees of the School District are covered under two statewide public employee retirement (including disability retirement) systems. The State Teachers Retirement System (“STRS”) covers all teachers, principals, supervisors and administrators who are required to hold a certificate issued by the State Department of Education and Workforce. Other eligible full-time employees are covered by the School Employees Retirement System (“SERS”).

STRS and SERS are two of five statewide public employee retirement systems created by and operating pursuant to Ohio law, all of which currently have unfunded actuarial accrued liabilities. The General Assembly has the power to amend the format of those systems and to revise rates and methods of contributions to be madebypublic employers and theiremployees and eligibilitycriteria, benefits orbenefit levels for employee members. On September 12, 2012, the General Assembly passed five separate pension reform bills intended to assist each of the five retirement systems in addressing its unfunded actuarial accrued liabilities. Those bills applicable to STRS and SERS became effective on January 7, 2013.

19

19173087v1

The law now applicable to STRS provides for (i) no change in the School District’s contribution rate with respect to its employees’ earnable salaries and (ii) an increase in the STRS employees’ contribution rate from 10% to 14% in annual increments of 1% (the last of which took effect on July 1, 2016). Among other changes and with certain transition provisions for current employees, the minimum age and service requirements for eligibility for retirement and disability benefits have been increased, the calculation of an employee’s final average salary on which pension benefits are based has been revised to include the five highest years (rather than the three highest years), STRS pension benefits are being calculated on a lower, fixed formula and provisions with respect to future annual cost-of-living adjustments have been changed to reduce those adjustments to two percent (from 3%). The STRS board has also been provided with authority to make future adjustments to the member contribution rate, retirement age and service requirements, and cost-of-living adjustments as the need or opportunity arises, and depending on the funding progress. Under current law, STRS has a maximum 30-year period to amortize its unfunded accrued pension liability. According to STRS’s most recent Actuarial Valuation and Review (dated as of October 2022), STRS’s actuarial consultant projected that the period required to fully amortize STRS’s actuarial unfunded accrued liability was 11.5 years.

The law now applicable to SERS provides for no change to the School District’s or SERS employees’ contribution rates, future cost-of-living adjustments or the calculation of an employee’s final average salary on which pension benefits (the average of the three highest years). However, among other changes and with certain transition provisions for current employees, the minimum age and service requirements for eligibility for retirement and disability benefits was increased and provisions for disability benefits and service credit purchases were revised.

The School District currently pays the employee contributions of 14% and 10% for STRS and SERS, respectively, on behalf of its Superintendent and Treasurer and administrative employees.

For further information on STRS and SERS and their pension plans, see the Notes to the Fiscal Year 2023 Financial Statements. Financial and other information for STRS and SERS can also be found on the respective website for each retirement systemincludingits Annual Comprehensive Financial Report.

Federal law requires School District employees hired after March 31, 1986 to participate in the federal Medicare program, which requires matching employer and employee contributions, each being 1.45% of the wage base. Otherwise, School District employees who are covered by a State retirement system are not currently covered under the federal Social Security Act. STRS and SERS are not subject to the funding and vesting requirements of the federal Employee Retirement Income Security Act of 1974.

20

19173087v1

DEBT TABLE A

Principal Amounts of Outstanding General Obligation (GO) Debt; Leeway for Additional Debt Service within Direct Debt Limitations (a)

A.	Total debt: B.	Exempt debt:
C.	Total nonexempt debt [A minus B]: D.	Unvoted Debt Limitations

E.	Total nonexempt limited tax bonds and notes outstanding:

Bonds: Notes:
F.	Debt leeway within unvoted debt limitations [D minus E]:

G.	9% of tax (assessed) valuation (voted and unvoted debt limitation):

H.	Total nonexempt bonds and notes outstanding:

Bonds: Notes:
I.	Debt leeway within 9% debt limitation [G minus H]:

1% of tax (assessed) valuations

$13,966,258

1% of tax (assessed) valuations

$0 $0

$13,966,258

1/10th of 1% of tax (assessed) valuation

$1,396,625

1/10th of 1% of tax (assessed) valuation

$0 $0

$1,396,625

$78,080,000

$78,080,000 0 $78,080,000

9/10th of 1% of tax (assessed) valuation

$12,569,632

9/10th of 1% of tax (assessed) valuation

$0 $0

$12,569,632

$125,696,326

$47,616,326

Debt leeway in this table determined without considering money in the Bond Retirement Fund.

The School District’s current tax (assessed) valuation for purposes of determining its direct debt limitation is $1,380,857,780. See School District Debt and Other Long Term Obligations – Statutory Direct Debt Limitations.

DT-A-1

19173087v1

DEBT TABLE B

Various School District and Overlapping GO Debt Allocations (Principal Amounts)

School District Nonexempt GO Debt
Total School District GO Debt (exempt and nonexempt) Highest Total Overlapping GO Debt(c)

Amount $78,080,000

78,080,000

19,322,041

Per Capita (a) $5,536.41

5,536.41

1,370.07

% of School District’s Current Assessed Valuation (b)

5.59%

5.59

1.38

(a)	Based on 2022 (estimated) Census population of 14,103.
(b)	The District’s current assessed valuation is $1,396,625,850.
(c)	Includes, in addition to “Total School District GO Debt,” allocations of total GO debt of overlapping debt issuing subdivisions (as of July 1, 2023) resulting in the calculation of highest total overlapping debt based on percent of tax (assessed) valuation of territory of the subdivisions located within the School District (% figures are resulting percent of total debt of subdivisions allocated to the School District in this manner), as follows:

$8,404,987 County (6.19%); and $3,903,095 Sycamore Township (43.61%);

Allocation of GO debt of the remaining overlapping debt issuing subdivisions is as follows:

$6,259,383 The City (99.45%); $245,993 City of Madeira (2.61%); $14,720 City of Milford (0.32%); $257 Village of Terrace Park (0.03%);
$489,426 Symmes Township (9.03%); and
$4,180 Little Miami Joint Fire & Rescue District (0.08%).

Sources of tax (assessed) valuation and confirmation of GO debt figures for overlapping subdivisions: OMAC and the Hamilton County Auditor.

DT-B-1

19173087v1

DEBT TABLE C

Projected Debt Charges Requirements on School District GO Debt

Year	Outstanding Bonds

2023	5,683,218.76 2024	5,866,468.76 2025	5,870,318.76 2026	5,873,918.76 2027	6,058,193.76 2028	3,557,131.26 2029	3,557,531.26 2030	3,560,131.26 2031	3,559,731.26 2032	3,561,331.26 2033	3,559,731.26 2034	3,559,931.26 2035	3,560,831.26 2036	3,560,831.26 2037	3,559,931.26 2038	3,558,131.26 2039	3,560,431.26 2040	3,561,731.26 2041	3,557,031.26 2042	3,558,268.76 2043	3,558,337.50 2044	3,557,237.50 2045	3,561,600.00 2046	3,558,800.00 2047	3,558,600.00 2048	3,556,600.00 2049	3,560,000.00 2050	3,558,400.00 2051	3,556,800.00

Total, all paid from unlimited ad valorem taxes

5,683,218.76 5,866,468.76 5,870,318.76 5,873,918.76 6,058,193.76 3,557,131.26 3,557,531.26 3,560,131.26 3,559,731.26 3,561,331.26 3,559,731.26 3,559,931.26 3,560,831.26 3,560,831.26 3,559,931.26 3,558,131.26 3,560,431.26 3,561,731.26 3,557,031.26 3,558,268.76 3,558,337.50 3,557,237.50 3,561,600.00 3,558,800.00 3,558,600.00 3,556,600.00 3,560,000.00 3,558,400.00 3,556,800.00

DT-C-1

19173087v1

DEBT TABLE D

Outstanding GO Bonds

Issue

School Facilities Improvement Bonds, Series 2016

School Facilities Improvement Bonds, Series 2021

Total

Dated Date

09/14/2016

08/12/2021

Final Maturity

12/01/2027

12/01/2051

Original Principal Amount

$13,940,000

71,450,000

Balance Outstanding June 30, 2023

$8,290,000

69,790,000

$78,080,000

DT-D-1

19173087v1

APPENDIX A

Historical Revenues and Expenditures General Fund (Fiscal Years 2019 through 2023 and Forecasted Fiscal Year 2024)

The figures in the table below have been taken from the School District’s Five-Year Forecasts as reported to the State as required by Section 5705.391 of the Revised Code (the most recent of which was last updated in November 2023).

Revenue:

General Property Tax (Real Estate) Tangible Personal Property Tax(b) Unrestricted Grants-in-Aid Restricted Grants-in-Aid
Property Tax Allocation All Other Revenues Total Revenues
Other Financing Sources: Advances-In
All Other Financing Sources Total Other Financing Sources
Total Revenues and Other Financing Sources Expenditures:
Personal Services

Employees’ Retirement/Insurance Benefits Purchased Services
Supplies and Materials Capital Outlay Principal - Other
Interest and Fiscal Charges Other Objects
Total Expenditures Other Financing Uses:
Total Expenditures and Other Financing Uses

Excess of Rev & Other FinancingSources over (under) Expenditures and Other Financing Uses

Cash Balance July1 – Excl Proposed Renewal/ Replacement and New Levies

Fund Balance June 30

2019

$21,710,369 538,700 1,451,035 127,274 3,069,316 5,759,634 $32,656,328

32,500 286,485 318,985 $32,975,313

$20,847,735 7,394,948 4,781,196 1,323,215 1,424,434
--
420,091 $36,191,619

$36,274,028

($3,298,715)

$21,870,456

$18,571,741

2020

$24,634,247 602,605 1,399,482 279,267 3,062,553 7,692,335 $37,525,775

78,412 17,169 95,581 $37,621,356

$21,667,178 7,453,139 4,398,282 1,286,874 6,107,228
--
480,976 $41,393,677

$41,413,226

($3,791,870)

$14,779,869

$14,779,869

2021

$25,327,151 567,545 1,381,519 144,557 3,147,629 6,288,987 $36,857,388

19,549 23,566 43,115 $36,900,503

$21,565,695 6,819,714 4,878,255 1,457,837 678,248
-29,175
436,519 $35,865,443

$35,884,048

$1,016,455

$15,796,325

$15,796,325

2022

$27,509,471 796,949 1,266,932 279,267 3,210,180 6,970,868 $40,033,667

18,605 3,445 22,050 $40,055,717

$22,135,319 7,599,775 5,591,673 1,459,815 788,150 280,000 59,096 538,213 $38,452,041

$39,666,086

$389,631

$16,185,956

$15,685,956

2023

$29,547,488 802,537 1,334,754 359,545 3,239,088 7,471,248 $42,754,660

1,214,045 1,550 1,215,595 $43,970,255

$24,386,915 8,026,067 6,726,431 1,834,174 1,436,637 285,000 278,365 512,611 $43,486,200

$44,091,270

($121,015)

$16,064,941

$16,064,941

Forecasted

2024

$30,721,378 819,959 2,016,140 400,297 3,394,573 7,247,233 $44,599,580

51,817 15,000 66,817 $44,666,397

$24,862,327 8,339,212 6,415,302 1,882,761 1,100,000 600,000 418,822 541,990 $44,160,414

$44,500,414

$165,983

$16,230,924

$15,730,924

A-1

19173087v1

APPENDIX B-1

Financial Report (Cash Basis All-Funds Summary) for Fiscal Year 2023

DESCRIPTION

General Fund Bond Retirement Building Lunchroom Trust & Agency
Public School Support District Agency Termination Benefits Capital Projects Student Activity Athletic Activity Auxiliary Services One Net Connectivity State Safety Grant
Elem/Secondary Sch Emer Relief Title VI-B IDEA
Title III Title I
Title VI-B ECSE Title II-A
Title IV-A

Total

BEGINNING BALANCE

$16,185,956.98 4,401,358.39 67,827,716.89 200,901.30 26,492.71 20,394.64
0.00 130,829.55 0.00 34,363.47 645,884.10 117,682.01 0.00 45,000.00 0.00 10,820.00 0.00
0.00 0.00
16,788.07 0.00

$89,664,188.11

RECEIPTS

$43,970,253.33 5,861,338.95 11,123,852.32 627,183.75 9,296.27 23,541.52 8,400.00 175,714.72 85,000.00 185,868.54 1,377,826.97 593,189.12 7,200.00 146,115.88 1,605,041.48 737,210.92 7,441.20 108,176.27 4,853.03 52,094.17 9,479.16

$66,719,077.60

EXPENDITURES

$44,091,269.18 5,713,768.87 41,218,247.91 722,221.09 0.00
15,318.32 8,400.00 199,817.67 0.00 158,026.89 1,514,343.20 666,618.61 7,200.00 180,000.00 1,589,698.98 730,823.53 7,441.20 108,176.27 4,853.03 67,317.25 9,079.21

$97,012,621.21

ENDING BALANCE

$16,094,941.13 4,548,928.47 37,733,321.30 105,863.96 35,788.98 28,617.84
0.00 106,726.60 85,000.00 62,205.12 509,367.87 44,252.52 0.00 11,115.88 15,342.50 17,207.39 0.00
0.00 0.00 1,564.99 399.95

$59,400,644.50

B-1

19173087v1

APPENDIX B-2

Financial Report (Cash Basis All-Funds Summary) for Fiscal Year 2022

DESCRIPTION

General Fund Bond Retirement Building Lunchroom Trust & Agency
Public School Support District Agency Termination Benefits Student Activity Athletic Activity Auxiliary Services One Net Connectivity
Student Wellness and Success State Safety Grant Elem/Secondary Sch Emer Relief Title VI-B IDEA
Title I

Title VI-B ECSE Title II-A
Title IV-A

Total

BEGINNING BALANCE

$15,796,325.47 2,097,187.62 76,608,411.77 272,981.95 26,110.66 23,756.61 2,630.00
0 53,148.25 735,559.10 119,680.05 0 144,833.74 0
0 2,486.55 0
0 0 0

$95,883,111.77

RECEIPTS

$40,055,717.44 83,853,289.77 74,350.06 841,050.78 382.05 6,159.62 2,030.00 161,081.15 119,223.26 578,675.29 598,746.73 7,200.00
0 146,326.46
1,053,056.64 601,562.61 142,382.48 3,530.01 49,015.88 14,802.48

$128,308,582.71

EXPENDITURES

$39,666,085.93 81,549,119.00 8,855,044.94 913,131.43
0 9,521.59 4,660.00 30,251.60
138,008.04 668,350.29 600,744.77 7,200.00 144,833.74 101,326.46 1,053,056.64 593,229.16 142,382.48 3,530.01 32,227.81 14,802.48

$134,527,506.37

ENDING BALANCE

$16,185,956.98 4,401,358.39 67,827,716.89 200,901.30 26,492.71 20,394.64
0 130,829.55 34,363.47 645,884.10 117,682.01 0
0 45,000.00 0 10,820.00 0
0 16,788.07 0

$89,664,188.11

B-2

19173087v1

APPENDIX C

Audited Financial Statements for the Fiscal Year Ending June 30, 2023

The School District’s audited financial statements for the fiscal year ended June 30, 2023 are attached to this Annual Report.

C-1

19173087v1

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY

SINGLE AUDIT

FOR THE YEAR ENDED JUNE 30, 2023

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),asofandfor theyear endedJune30,2023,andtherelatednotes tothefinancialstatements, 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 fraudor error, andto issueanauditor’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.

2

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 requiredbyTitle2U.S.CodeofFederalRegulations (CFR) Part200,UniformAdministrativeRequirements, 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 acceptedintheUnitedStatesofAmerica. Inour opinion, theScheduleof Expendituresof 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 issolely to describe the scope ofour testing of internalcontrol 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

This page intentionally left blank.

4

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT HAMILTON COUNTY, OHIO

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

Thediscussionand analysisof theIndianHillExemptedVillageSchoolDistrict’s(“theDistrict”)financialperformanceprovides 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.

•	TheDistrict’smajor governmental fundsarethe generalfund, bondretirement fundand thebuildingfund. The generalfund had $42,728,488 in revenuesand otherfinancing sourcesand$43,898,464 in expendituresand 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.

Thestatement of net position and statementofactivitiesprovide information aboutthe activitiesofthewhole 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.

5

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,deferredinflows, revenuesandexpensesusing theaccrualbasisof accountingsimilar to the accountingused by mostprivate-sectorcompanies. Thisbasisof accountingwilltakeinto account,allof thecurrentyear’srevenuesandexpenses 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 tax base, currentproperty taxlawsinOhio restricting revenuegrowth,facilityconditions,requirededucationalprograms 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 oftheDistrict’sactivitiesarereported in governmental funds, whichfocuson howmoney flowsinto and out of thosefunds 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 andthebasicservicesitprovides. Governmentalfund informationhelpsyoudeterminewhetherthere aremore orfewer 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.

6

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

Deferred outflows of resources

Unamortized deferred charges on debt refunding Pension
OPEB

Total deferred outflows of resources

$ 106,727,786 104,080,487

210,808,273

-9,798,723 753,147

10,551,870

$ 135,968,618 58,222,851

194,191,469

36,585 9,875,140 931,120

10,842,845

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

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

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

7

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 reportedpursuant to Governmental Accounting StandardsBoard(GASB)Statement 68, “Accounting andFinancialReportingforPensions—anAmendmentofGASBStatement27.”Thenetotherpostemploymentbenefits(OPEB) liability/asset is reported pursuant to GASB Statement 75, “Accounting and Financial Reporting for Postemployment Benefits OtherThanPensions.” Forreasonsdiscussed below, many endusersofthisfinancial statementwill gain aclearerunderstanding of the District’s actual financial condition by adding deferred inflowsrelated 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’snet 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 abargained-forbenefitto theemployee, and should accordinglybereportedby thegovernmentasaliability sincethey 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.

8

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 assetsincreased astheDistrict began improvementsfinanced bytheSeries2021 bondissue. Theseprojectsarebeingcapitalized 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. Thesecapitalassetsareused to provideservicestothestudentsandarenotavailablefor futurespending. 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-termliabilitiesincreased inlargepartto asubstantialincreasein thenetpensionliability. Thenetpension 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 fiscalyear 2022measurementdatethatare usedforthefiscalyear 2023 reporting. Thiscaused alargedecreasein their respective fiduciary netpositionswhichwasadrasticchangefromthepreviousfiscalyear’slargepositiveinvestmentreturns. TheDistrict’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).

Thegraph belowpresentstheDistrict’sgovernmentalactivitiesassets, deferred outflowsof 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

9

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.

Changein Net Position

Revenues Programrevenues:
Charges forservicesand sales Operatinggrantsandcontributions Capital grants andcontributions
Generalrevenues: Propertytaxes Paymentsin lieu oftaxes Grantsand entitlements Investment earnings
Changeinfairvalueofinvestments Miscellaneous

Total revenues

Expenses Programexpenses:
Instruction: Regular Special Vocational Other
Supportservices: Pupil Instructionalstaff Boardofeducation Administration Fiscal
Business Operationsandmaintenance Pupil transportation
Central

Operationofnon-instructionalservices: Foodserviceoperations
Other non-instructionalservices Extracurricular activities
Interest and fiscal charges

Total expenses

Changein netposition

Netposition atbeginningof 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 positionat end ofyear	$ 27,660,684	$	23,247,138

10

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 revenuesof $49,435,297. Programrevenues 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 grantsand 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 sourcesof revenue for governmental activities are derived from property taxes, payments in lieu of taxesandgrants 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

11

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. Thefollowingtable shows, forgovernmental activities, the total costof services and thenet cost ofservices. 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	

NetCost of Services
	2023	

Total Cost of Services
	2022	

Net Cost of Services
	2022	

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

Operations andmaintenance Pupiltransportation
Central

Operations ofnon-instructional services Food serviceoperations
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 generalrevenues 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.

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 asinterestrateson investmentshaveimproved fromtheprior year. Thedecreasein fair valueof investmentsisdueto theDistrict 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, whichwas$177,163 lessthanthefinalbudgeted appropriations. Theprimaryareaofdecreasefromthefinalbudget to actual expenses wasin the areaof regularandother instruction asthe 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 entireamountisreported ingovernmental activities. Thefollowing tableshowsfiscal2023 balancescompared to thefiscal2022 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 thistotal, $3,923,937 isduewithin oneyear and $87,469,802 isdue in greater than oneyear. Thefollowing tablesummarizes 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

TheIndian HillSchoolDistrict'scurrentfinancialstory isoneoffiscalstability, and thatisaresultofourcommunity’sinvestment 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 needswithinourbuildings. The bondis a 30-yearfinancial 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 languageand artroomsaswellasagymnasium. Anewentranceandmultiplerenovationswerecompleted atthePrimary School that updatedsecurity,light, and mechanical equipment aswell as creating andrefreshing 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 doasanorganization. Our budgetisbalanced; our financial outlookisstable; our focusisto continuetoprovideour 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 Grant and Contribution

$	 ----

------
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 beginnin 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 Governmenta 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 Retiremen

Nonmajor Governmental
Building	Funds

Total Governmenta 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 ye 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 T NET POSITION OF GOVERNMENTAL ACTIVITIES
JUNE 30, 2023

Total governmental fund balances	$	62,114,525

Amounts reported for governmental activities on the tatement 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 Retiremen

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, i
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 expenditur 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 compensate 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 (un er) 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

THIS PAGE IS INTENTIONALLY LEFT BLANK

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 StatementsNo. 14 and No.34”. Thereporting entity iscomposedof theprimary government andcomponentunits. 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 electronicequipment) to administrativeand instructionalfunctionsamongmember schooldistricts. TheGoverning Board of HCC consists of the superintendents and/or treasurers of the participating districts. HCC is not accumulatingsignificantfinancialresourcesnor isitexperiencing fiscalstressthatmay causean additionalfinancial 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. Thefiscalagent for SWOOSHistheHamilton County EducationalServiceCenter (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.

Membersassume no liability beyond thepaymentofany dues, fees, or cooperativecostsassessed by theSWOOSH 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 claimto the cooperative’sassets. No Membermay withdrawduring the first twoyears after joining theSWOOSH. After thefirst two yearsof membership, a Membermay withdrawat the endof any fiscalyearby providingwritten 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 ofthe Forest HillsLocal School District at 7946 BeechmontAve., 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

TheDistrictusesfundsto maintain itsfinancialrecordsduring theyear. Afund isdefinedasafiscalandaccounting 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 tothevariousgovernmental fundsaccordingto thepurposesforwhich they may or mustbeused. 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:

Generalfund- Thisfund isused toaccountforand reportallfinancialresourcesnotaccounted forandreported 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 – Thisfund isused to account forthe accumulationofrestricted resourcesandpayment 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 trustfunds,investmenttrustfunds,privatepurposetrustfundsandcustodialfunds. Trust fundsaredistinguished fromcustodial fundsby theexistenceof a trust agreementor 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)

Thegovernment-widestatementof activitiespresentsa comparison between directexpensesandprogramrevenues 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 offeredby 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 fundsare accounted for using a flowof currentfinancialresourcesmeasurementfocus. Withthis 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

Basisof accounting determineswhen transactionsare recorded in thefinancialrecordsand reported on thefinancial 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.

Nonexchangetransactions, in whichtheDistrictreceivesvaluewithoutdirectlygiving equalvalueinreturn, include property taxes, grants, entitlements and donations. On anaccrual 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 ofnetassetsthatappliesto afutureperiod and willnotberecognized asan inflowofresources(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 limitedto, delinquentproperty taxes and intergovernmental grants. These amountsare 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 areprepared onthebudgetarybasis 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:
Priorto January15, theSuperintendentandTreasurer submittotheBoardofEducation aproposed operating budget for the fiscal year commencing the following July 1. The budget includes proposed expenditures and the means of financing for all funds. Public hearingsare publicized and conducted toobtain 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 fundduring theensuing year willnotexceed theamountstated in thecertificateof estimated resources. Therevised 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 theyear if projectedincreasesordecreasesinrevenueareidentified by theDistrictTreasurer. Theamountsreported 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:
Atthecloseofeachfiscalyear, theunencumbered balanceof eachappropriationrevertsto therespectivefund 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’sinterestin thepoolispresented as“equity in pooled cashand investments”on thebasic financialstatements.

During fiscalyear 2023, investmentswerelimited toFederalHomeLoan Bank(FHLB) securities,FederalNational MortgageAssociation (FNMA) securities, FederalHomeLoan MortgageCorporation (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 ReserveofOhio (STAROhio). Exceptfor investmentsin STAROhio,investmentsarereported atfair 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 restrictionson 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 becredited toaspecificfund.TheBoard of Educationhas, by resolution, specified thefundsto receivean 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 theyear. Donatedcapital assets are recorded at their acquisition valuesas of thedate 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. Duringfiscal year 2023, theDistrict increased itscapitalization threshold from $2,500 to $5,000. TheDistrict 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 andequipment Vehicles
Intangible right to use: Lease assets Compute software

Governmental Activities
 Estimated Lives 

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

5years 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.

Inaccordancewiththeprovisionsof GASB StatementNo. 16, “Accounting for Compensated Absences”,aliability for vacation leave is accrued if a) the employees’ rights to payment are attributable to services already rendered; andb)itisprobablethattheemployer willcompensatetheemployeesfor thebenefitsthrough paid timeofforother 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 thoseemployeeswho arecurrentlyeligibleto receivetermination(severance) payments, aswellasthoseemployees 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 reducedtothemaximumpaymentallowedby laborcontractand/orstatute, plusany applicableadditional 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 expectedtobepaid using expendableavailableresources. Theseamountsarerecordedintheaccount“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

Allpayables, accrued liabilitiesandlong-termobligationsarereported in thegovernment-widefinancialstatements.

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 recognizedin thegovernmentalfundstotheextentthatbenefitpaymentsaredueand payableandthepension/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 premiumsarepresented asan additiontothefaceamountof thebonds. Bond discountsarepresented asareduction 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 arenotinspendableformorlegally required tobemaintained intact. The“notin spendableform”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 -Thecommittedfundbalanceclassification includesamountsthatcan be usedonly forthe specific purposes imposed by a formal action (resolution) of the District Board of Education (the highest level of decisionmaking authority). Thosecommitted amountscannotbeusedforanyother purposeunlesstheDistrict 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 DistrictBoard of Education,whichincludesgiving theTreasurer theauthority toconstrain moniesforintended 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 improvementof those assets. Deferred outflowsof resourcesanddeferred inflowsofresourcesthat areattributable to the acquisition, construction or improvement of those assets or related debt also should be included in this componentof netposition. Netpositionisreported asrestricted when thereare limitationsimposedonitsuseeither 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 sheetusing theconsumption method. Acurrentassetfortheprepaidamountsisrecorded atthetimeofthepurchase 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

Thepreparation ofthebasicfinancialstatementsin conformitywith GAAPrequiresmanagementto makeestimates andassumptionsthat affect theamountsreported in the basic financial statementsand 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 refundsof employee contributions) are recognizedwhen 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

Extraordinaryitemsare transactionsor eventsthat are bothunusual 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 1inputsare quoted prices inactivemarketsfor identical assets; Level 2inputsaresignificantother 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 diversityin practiceassociated with (1)commitmentsextendedbyissuers, (2) arrangementsassociated withconduit debtobligations, and (3) related notedisclosures.ThisStatementachievesthoseobjectivesbyclarifying theexisting 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 controlof therightto operateoruse anonfinancial asset,such asinfrastructureor other capitalasset (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— andacorrespondingsubscriptionliability;(3)providesthecapitalizationcriteriaforoutlaysother thansubscription 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 implementationandapplicationof certain GASBStatementsand(2) accountingand financialreporting forfinancial 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 SecondarySchool

Emergency Relief (ESSER) Fund                       $ 2,501 Title III- LimitedEnglish 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.

Activedepositsarepublicdepositsnecessaryto meetcurrentdemandson thetreasury. Such moniesmustbemaintained either ascash in theDistricttreasury, incommercialaccountspayableor withdrawableondemand, includingnegotiable order of withdrawal (NOW) accounts, or in money market deposit accounts.

Inactive deposits are public depositsthat theBoard of Educationhasidentifiedasnotrequired for usewithinthe 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 StatesTreasury Notes, Bills,Bonds,or any other obligation or securityissued by theUnited StatesTreasury 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 agreementsin the securitieslisted above provided that the marketvalue ofthe securitiessubject to therepurchaseagreementmustexceed theprincipalvalueof theagreementby atleasttwo percentand bemarked 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 securitiespledged 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 aqualified trusteeandpledgedto theTreasurerof State tosecuretherepaymentof allpublic moniesdeposited 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. TreasuryNotes 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 activemarkets(Level 1inputs).TheDistrict'sinvestmentsin federalagency 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 potentialpurchasersof 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 raterisk byrequiring the consideration ofcashflowrequirementsand market conditionsin 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 notesare 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

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

$	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 paymentisdueDecember 31, with theremainder payableby June20. Under certain circumstances, Statestatutepermits 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 year2023 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 fiscalyear 2023 operations. The amount available asan advance at June30, 2023was$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 foradvance at June30, 2022 was$11,855,000 in the general fund and $2,230,000inthebond 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 theaccrualbasisofaccounting, collectibledelinquentpropertytaxeshavebeen recordedasareceivableand 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 aspart 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

Extracurr cular activit es

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 financetheacquisitionof fiveschoolbuses. Thesourceof revenue to fund theprincipaland interestpaymentsisderived 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 financeenergyimprovementsto Districtfacilities. Thetotalamountof thefinancedpurchasenotepayableagreement 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, thebalanceofthemoniesheldby TMIasescrowagentwas$561,699. Thesourceofrevenuetofund theprincipal 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 assetsconsisting of vehiclesand construction in progress havebeen 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.

Paymentsofprincipal and interestrelatingto theSeries2016RefundingBondsarerecorded asexpendituresinthebond retirement fund. Interest paymentson the current interest bonds are due on June 1 and December 1 each year. The final maturitystated intheissueisDecember 1, 2027. Principalandinterestrequirementsto retiretheSeries2016 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
TheDistricthasentered into leaseagreementsfor theright-to-useleaseequipment. Inaccordancewith 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
Thefinancedpurchasenotespayableisbeing repaid fromthegeneralfund. SeeNote10 for moredetailon theDistrict’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
Moreinformation on theDistrict’snetOPEBliabilityinformation can befound inNote14. TheDistrictpaysobligations 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
TheOhio Revised Codeprovidesthatvotednetgeneralobligation debt of the District shall neverexceed9%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 SchoolPlan for general liability insurancewith a$11,000,000singleoccurrenceand 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–betweenan 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/OPEBplan’sfiduciary 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 comesolely fromtheseemployers(which also includespension costspaidin theformof withholdingsfromemployees). The retirement systems may allocate a portion of the employer contributions to provide for these OPEB benefits. In addition, health careplan enrolleespay aportion of thehealth care costsin theformof amonthlypremium. Statestatute 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)

Plan Description- TheDistrict’snon-teachingemployeesparticipatein SERS, acost-sharingmultiple-employerdefined 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 orbefore
August 1, 2017 *

Eligible to Retire after
August 1, 2017

Fullbenefits

Actuarially reduced benefits

Any age with 30years of service credit

Age 60with 5years ofservice credit; or

Age 55 with 25 years of service credit

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

Age 62with 10years of service credit; or

Age 60with 25 years of service credit

* Members with 25years of service credit as of August 1, 2017willbe 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 requiredto contribute14.00%ofannualcovered payroll. Thecontribution requirementsof planmembersandemployers 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’scontractually 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)

PlanDescription - Licensed teachers participate inSTRS,a cost-sharingmultiple-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 is2.20%of final average salary for the fivehighest 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 benefitunfundedliability. Amember iseligibletoreceivearetirementbenefitatage50 andterminationof 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 theCombined Plan payment ispayable toa member on or after age 60 with fiveyearsofservice. 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 foradisability benefit. Newmembers, onorafter July 1, 2013, musthaveatleastten yearsofqualifyingservice 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 theDC Plan diesbefore retirementbenefitsbegin,themember’sdesignated beneficiary isentitledto 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.

TheDistrict’scontractuallyrequiredcontributiontoSTRSwas$2,841,837forfiscalyear2023. Of thisamount, $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:

Proportionof the net pension liabilityprior measurement date
Proportionof the net pension liabilitycurrent measurement date
Change inproportionate share

Proportionate share of the net

SERS

0.141238800%

0.137737600%

-0.003501200%

STRS	Total

0.146246823%

0.145260290%

-0.000986533%

pensionliability                                               $         7,449,921         $      32,291,546         $ 39,741,467 Pensionexpense                                                  $            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 ofresources 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 ofresources Differences betweenexpected and
actual experience

Net difference between projected and

actual earnings on pensionplaninvestments

SERS

$	48,907

259,969

STRS

$	123,524

-

Total

$	172,431

259,969

Changes of assumptions

Difference betweenemployer contributions andproportionate share of contributions/ change in proportionate share

Total deferredinflows of resources

-

175,425

$	484,301

2,908,728

293,189

$ 3,325,441

2,908,728

468,614

$ 3,809,742

$3,618,365reported asdeferred outflowsofresourcesrelated topensionresulting fromDistrictcontributionssubsequent 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 theirannualactuarialvaluation for eachdefined benefitretirementplan. Actuarialvaluationsof 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 andplan members) and include the types of benefits provided at the time of eachvaluation 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 Priormeasurement date
Future salary increases, including inflation: Current measurement date Priormeasurement date
COLA orad hoc COLA: Current measurement date Priormeasurement date
Investment rate ofreturn: Current measurement date Prior measurement date
Discount rate:

Current measurement date Priormeasurement date
Actuarialcost method

2.40% 2.40%

3.25% to 13.58% 3.25% to 13.58%

2.00% 2.00%

7.00% net ofsystemexpenses 7.00% net ofsystemexpenses

7.00% 7.00%
Entry age normal(levelpercent of payroll)

In2022,mortality rateswerebasedonthePUB-2010GeneralEmployeeAmountWeightBelowMedianHealthyRetiree mortality table projected to 2017 with ages set forward 1 year and adjusted 94.20% for males and set forward 2 years andadjusted 81.35%forfemales. Mortality amongdisabledmemberswerebasedupon thePUB-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-2010 GeneralDisabled Retireemortality tableprojectedto2017 with agessetforward 5 yearsand adjusted103.3% 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.

Thelong-termreturnexpectationforthePension Plan Investmentshasbeen determinedusingabuilding-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 USEquity
Non-US Equity Developed Non-US Equity Emerging Fixed Income/GlobalBonds Private Equity RealEstate/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-TermExpected RealRate ofReturn

(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 oncontributionrequirementsasstipulatedbyStatestatute. Projected inflowsfrominvestmentearnings werecalculatedusing the long-termassumed investmentrateofreturn (7.00%). Basedonthoseassumptions,theplan’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 wouldbeif itwerecalculatedusing adiscountratethatisonepercentagepointlower(6.00%), or onepercentage point higher (8.00%) than the current rate.

1%Decrease District's proportionate share

Current

Discount Rate	1% Increase

of the net pensionliability	$	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 ofreturn

Discount rate ofreturn Payrollincreases
Cost-of-living adjustments

(COLA)

Varies by service from2.50% to 8.50%

7.00%,net ofinvestment expenses,including inflation
7.00% 3.00%
0.00%

12.50% at age 20to 2.50% at age 65
7.00%,net ofinvestment 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 ratesthereafter, projected forward generationallyusing mortalityimprovementscaleMP-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)

STRSOhio’sinvestmentconsultantdevelopsan estimaterangefortheinvestmentreturn assumptionbased on thetarget 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 InternationalEquity Alternatives
Fixed Income RealEstate Liquidity Reserves

Total

Target Allocation*

26.00 % 22.00 19.00 22.00 10.00
1.00

100.00 %

Long-TermExpected RealRate ofReturn **

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 ofreturn and inflationof 2.25% and isnet 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 pensionliability	$	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 itsnon-Medicareretireepopulation. For bothgroups, SERSoffersa 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.

FundingPolicy- StatestatutepermitsSERSto fundthehealth carebenefitsthroughemployer 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’sSERS-covered payroll; nor maySERS collect in aggregate more than1.5%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. TheDistrict’scontractually required contributionto SERSwas$73,444 for fiscalyear 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 partialreimbursementofmonthlyMedicarePartBpremiums. TheMedicarePartBmonthly reimbursementelimination 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 inproportionate 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
OPEBasset

OPEB expense

$	1,967,167

$	-

$	(201,665)

$	-

$	3,761,272

$	(717,354)

$ 1,967,167

$ 3,761,272

$	(919,019)

AtJune30, 2023, theDistrictreported deferred outflowsofresourcesand deferredinflowsof resourcesrelatedtoOPEB from the following sources:

Deferred outflows ofresources 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 ofresources Differences betweenexpectedand
actual experience

SERS

$ 1,258,341

STRS

$	564,875

Total

$ 1,823,216

Changes of assumptions

Difference between employer contributions andproportionate share of contributions/ change inproportionate 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 willbe recognized asa reduction ofthe netOPEBliability/asset in thefiscal year ending June30, 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 valueof reported amounts(e.g., salaries,credited service) and assumptionsabouttheprobabilityofoccurrenceofevents 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 andplan members) and include the types of benefits provided at the time of eachvaluation 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 manycases, actuarial calculationsreflect severaldecadesof service with the employerand thepaymentof benefitsafter 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 Priormeasurement date
Future salary increases,including inflation: Current measurement date Priormeasurement date
Investment rate ofreturn: Current measurement date

Priormeasurement date

Municipalbond indexrate: Current measurement date Priormeasurement date
Single equivalent interest rate, net ofplan investment expense, including price inflation:
Current measurement date Priormeasurement date
Medicaltrend assumption: Current measurement date Priormeasurement date
Medicare

Pre-Medicare

2.40% 2.40%

3.25% to 13.58% 3.25% to 13.58%

7.00% net ofinvestment expense,including inflation 7.00% net ofinvestment expense,including inflation

3.69% 1.92%

4.08% 2.27%

7.00to 4.40%

5.125to 4.400%

6.750to 4.400%

In2022,mortality rateswerebasedonthePUB-2010GeneralEmployeeAmountWeightBelowMedianHealthyRetiree mortality table projected to 2017 with ages set forward 1 year and adjusted 94.20% for males and set forward 2 years andadjusted 81.35%forfemales. Mortality amongdisabledmemberswerebasedupon thePUB-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.

Intheprior measurementdate,mortalityrateswerebased on thePUB-2010 GeneralEmployeeAmountWeightedBelow 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 Retireemortality tableprojectedto2017 with agessetforward 5 yearsand adjusted103.3% 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.

Thetarget asset allocation andbest estimatesof arithmetic realratesof returnfor eachmajor asset classaresummarized as follows:

Asset Class

Cash USEquity
Non-USEquity Developed Non-USEquity Emerging Fixed Income/GlobalBonds Private Equity RealEstate/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-TermExpected RealRate ofReturn

(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 beif itwerecalculatedusingadiscountratethatis1 percentagepointlower(3.08%) andhigher(5.08%)thanthecurrent 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 OPEBliability	$	2,443,252	$	1,967,167	$	1,582,838

1%Decrease

District's proportionate share

Current
TrendRate	1% Increase

of the net OPEBliability	$	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 ofreturn

Payrollincreases

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

Varies by service from2.50% to 8.50%
7.00%,net ofinvestment expenses,including inflation
3.00% 0.00%

7.00%

N/A

12.50% at age 20to 2.50% at age 65
7.00%,net ofinvestment 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-retirementmortality ratesarebased on Pub-2010 TeachersEmployeeTable adjusted 95% for females, projected forward generationally using mortality improvement scale MP-2020. For disabled retirees, mortality ratesare basedonthe Pub-2010TeachersDisabled Annuitant Tableprojectedforward 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 InternationalEquity Alternatives
Fixed Income RealEstate Liquidity Reserves

Total

Target Allocation*

26.00 % 22.00 19.00 22.00 10.00
1.00

100.00 %

Long-TermExpected RealRate ofReturn **

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 ofreturn and inflationof 2.25% and isnet 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 contributionsto thehealth carefund. Based onthoseassumptions, theOPEBplan’sfiduciary netposition wasprojected 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 OPEBasset	$	3,483,008	$	3,761,272	$	4,004,607

1% Decrease

District's proportionate share

Current

TrendRate	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 ofoperations, and changes in fund balance on the basis of generally accepted accountingprinciples(GAAP), the budgetarybasisasprovidedby lawisbased uponaccountingfor 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) Expendituresand otherfinancing usesarerecordedwhen paidin cash (budgetbasis)asopposed to whentheliability 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 numerousfederal, State and local agenciesin the form of grants. The disbursement of funds received under these programs generally requires compliance with terms and conditionsspecified inthegrantagreementsand aresubjecttoauditby thegrantor agencies. Anydisallowed 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 isrequired by State law to annually set-aside certain general fund revenue amounts, asdefined 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 balancesatJune 30,2023asreported onthe fund financialstatements, 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.
# Forfiscal year2018, the followingchanges 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.
# Forfiscal year2022, the followingchanges 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 femalerates, 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)

90

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 monthl 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.

# Forfiscal year2020, health care cost trend rates werechanged 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)

91

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) :
# Forfiscal year2021, health care cost trend rates werechanged 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 followingchanges 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 werechanged 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.

# Forfiscal year2023, the followingchanges 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.

92

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.

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

TheDistrict has electednottousethe10-percent deminimis indirectcostrateasallowedunder theUniform 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

TheDistrict reports commoditiesconsumedontheScheduleat the entitlement value. TheDistrict allocated donated food commodities to the respective program that benefitted from the use of those donated food commodities.

94

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 planningandperformingour audit of thefinancial statements,weconsideredthe District’s internalcontrol 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 ininternalcontrol that weconsidertobematerialweaknesses. However, materialweaknesses or significant deficiencies may exist that were not identified.

Efficient         "                 Effective         "                 Transparent 95

Indian Hill Exempted Village School District Hamilton County
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 objectiveof our audit andaccordingly, wedonot express suchanopinion. The resultsof our tests disclosed noinstancesofnoncomplianceor othermattersthat arerequiredtobereportedunderGovernmentAuditing 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

96

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) ComplianceSupplement that couldhavea direct and materialeffect on IndianHillExempted 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.

Efficient         "                 Effective         "                 Transparent 97

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 2

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 dueto 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 absoluteassurance 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 combinationofdeficiencies,ininternalcontrolover compliance,suchthatthereisareasonablepossibility 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.

98

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

99

This page left intentionally blank.

100

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

101

INDIAN HILL EXEMPTED VILLAGE SCHOOL DISTRICT

HAMILTON COUNTY

AUDITOR OF STATEOF 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 which is 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

APPENDIX D

Five-Year Forecast

Following is a summary of a five-year financial projection prepared by the Treasurer of the School District through June 30, 2028, in compliance with Revised Code Section 5705.391 (see discussion in APPENDIX A under “FINANCES OF THE SCHOOL DISTRICT – Five-Year Projection”).	The projection is based upon certain assumptions required to be made in accordance with rules promulgated by the Department of Education and Workforce, including the assumption that no revenues from future voter-approved tax levies will be available. A complete version of the projection may be obtained from the Treasurer’s office or from the Department of Education and Worforce. Readers of this Official Statement are cautioned that actual circumstances may differ from the assumptions required to be used in preparation of this projection. As a result, the actual future financial situation of the School District may be materially different from that stated in this projection, and investors are cautioned not to place undue reliance on such forward-looking statements.

	Actual
	Forecasted
	
Forecast Line and Description
	2021
	2022
	2023
	2024
	2025
	2026
	2027
	2028
	
01.010: General Property Tax (Real Estate) 01.020: Tangible Personal Property Tax 01.035: Unrestricted Grants-in-Aid 01.040: Restricted Grants-in-Aid
01.050: State Share of Local Property Taxes 01.060: All Other Operating Revenue 01.070: Total Revenue
02.050: Advances-In
02.060: All Other Financing Sources 02.070: Total Other Financing Sources
02.080: Total Revenue and Other Financing Sources
03.010: Personal Services - Employee Salaries & Wages 03.020: Employees' Retirement and Insurance Benefits 03.030: Purchased Services
03.040: Supplies and Materials 03.050: Capital Outlay
04.055: Principal - Other
04.060: Interest and Fiscal Charges 04.300: Other Objects
04.500: Total Expenditures 05.010: Operational Transfers-Out 05.020: Advances-Out
05.040: Total Other Financing Uses
05.050: Total Expenditures and Other Financing Uses
06.010: Excess Of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
07.010: Beginning Cash Balance July 1- Excluding Proposed Renewal/Replacement and New Levies
07.020: Ending Cash Balance June 30- Excluding Proposed Renewal/Replacement and New Levies
08.010: Estimated Encumbrances June 30
10.010: Fund Balance June 30For Certification of Appropriations 11.020: Property Tax - Renewal or Replacement
11.300: Cumulative Balance of Replacement/Renewal Levies
	25,327,151       27,509,471       29,547,488 567,545            796,949            802,537 1,381,519         1,266,932         1,334,754 144,557            279,267            359,545 3,147,629         3,210,180         3,239,088 6,288,987         6,970,868         7,471,248
	30,721,378       31,904,112       32,053,694       32,484,516       32,855,621 819,959            842,649            865,339            863,699            861,444 2,016,140         2,362,929         2,764,304         3,127,285         3,252,503 400,297            411,226            423,190            432,895            437,760 3,394,573         3,551,265         3,568,716         3,624,616         3,680,330 7,247,233         7,298,770         7,332,441         7,323,353         7,314,217
	
	36,857,388	40,033,667	42,754,660 19,549              18,605         1,214,045 23,566                 3,445                 1,550
	44,599,580	46,370,951	47,007,684	47,856,364	48,401,875 51,817              30,000              30,000              30,000              30,000 15,000              15,000              15,000              15,000              15,000
	
	43,115              22,050         1,215,595 36,900,503       40,055,717       43,970,255
	66,817              45,000              45,000              45,000              45,000 44,666,397       46,415,951       47,052,684       47,901,364       48,446,875
	
	21,565,695       22,135,319       24,386,915 6,819,714         7,599,775         8,026,067 4,878,255         5,591,673         6,726,431 1,457,837         1,459,815         1,834,174 678,248            788,150         1,436,637
0            280,000            285,000 29,175              59,096            278,365 436,519            538,213            512,611
	24,862,327       25,478,047       26,000,741       26,723,204       27,430,534 8,339,212         8,730,596         9,111,768         9,547,218       10,005,406 6,415,302         6,272,938         6,295,911         6,297,980         6,312,165 1,882,761         1,896,043         1,914,196         1,925,640         1,944,897 1,100,000            550,000            600,000            650,000            700,000 600,000            655,000            670,000            690,000            715,000 418,822            401,404            392,091            363,600            321,393 541,990            546,880            551,620            551,241            556,479
	
	35,865,443       38,452,041       43,486,200 0                        0            553,253
18,605	1,214,045	51,817
	44,160,414       44,530,908       45,536,327       46,748,883       47,985,874 310,000            310,000            310,000            310,000            310,000 30,000              30,000              30,000              30,000              30,000
	
	18,605         1,214,045            605,070 35,884,048       39,666,086       44,091,270
	340,000            340,000            340,000            340,000            340,000 44,500,414       44,870,908       45,876,327       47,088,883       48,325,874

1,016,455	389,631	(121,015)
	
165,983	1,545,043	1,176,357	812,481	121,001

14,779,870	15,796,325	16,185,956

15,796,325       16,185,956       16,064,941 0            500,000                        0 15,796,325       15,685,956       16,064,941 0                        0                        0
0	0	0
	
16,064,941	16,230,924	17,775,967	18,952,324	19,764,805

16,230,924       17,775,967       18,952,324       19,764,805       19,885,806 500,000            500,000            500,000            500,000            500,000 15,730,924       17,275,967       18,452,324       19,264,805       19,385,806 0                        0                        0            102,764            208,345
0	0	0	102,764	311,109

D-1

19173087v1

Notes and Assumptions to the Five-Year Forecast

(Attached)

D-2

19173087v1

Indian Hill Exempted Village School District

Five Year Forecast Financial Report
November 2023

Prepared by Mick Davis, CFO/Treasurer

1

Forecast5 Analytics ReportWriter Software 2019 ©

Indian Hill Exempted Village School District

Table of Contents

Page

Table of Contents	2

Forecast Summary	3

Revenue Sources and Forecast Year‐Over‐Year Projected Overview	4 1.010 ‐ General Property Tax (Real Estate)	5 1.020 ‐ Public Utility Personal Property	6 1.030 ‐ Income Tax	7 1.035 ‐ Unrestricted Grants‐in‐Aid	8 1.040 & 1.045 ‐ Restricted Grants‐in‐Aid	9 1.050 ‐ State Share‐Local Property Taxes                                                                                                                                                              10 1.060 ‐ All Other Operating Revenues                                                                                                                                                                    11 2.070 ‐ Total Other Financing Sources                                                                                                                                                                   12

Expenditures Overview	13 3.010 ‐ Personnel Services	14 3.020 ‐ Employee Benefits	15 3.030 ‐ Purchased Services	16 3.040 ‐ Supplies and Materials	17 3.050 ‐ Capital Outlay	18 3.060 ‐ 4.060 ‐ Intergovernmental & Debt	19 4.300 ‐ Other Objects	20 5.040 ‐ Total Other Financing Uses	21

Five Year Forecast	22

1

Forecast Purpose/Objectives

Ohio Department of Education's purposes/objectives for the five‐year forecast are:

1.     To engage the local board of education and the community in the long range planning and discussions of financial issues facing the school district.

2.     To serve as a basis for determining the school district's ability to sign the certificate required by O.R.C. §5705.412, commonly known as the "412 certificate."
3.     To provide a method for the Department of Education and Auditor of State to identify school districts with potential financial problems.

Forecast Methodology ‐ This forecast is prepared based upon historical trends and current factors. This information is then extrapolated into estimates for subsequent years. The forecast variables can change multiple times throughout the fiscal year and while cash flow monitoring helps to identify unexpected variances no process is guaranteed. The intent is to provide the district's financial trend over time and a roadmap for decisions aimed at encouraging financial sustainability and stability.

Forecast5 Analytics ReportWriter Software 2019 ©

November 2023	Forecast Summary	Indian Hill Exempted Village School District

Projected Revenue, Expenditures, and Cash Balance $60,000,000

$50,000,000

‐ $40,000,000

‐	‐	‐	‐	‐

$30,000,000
20,196,914

$20,000,000

$10,000,000

$0		‐	‐ 2023 Actual

‐	‐ 2024 Projected

‐	‐ 2025 Projected

‐	‐ 2026 Projected

‐	‐ 2027 Projected

‐	‐ 2028 Projected

Total Revenue	Replace/Renew Levies	Total Expenditures	15.01 Cash Balance

Note: Cash balance (Line 7.020) plus any existing levy modeled as renewed or new during the forecast.

Financial Forecast
	Fiscal Year                 Fiscal Year                 Fiscal Year 2024                           2025                           2026
	Fiscal Year                 Fiscal Year 2027                           2028

Beginning Balance (Line 7.010) Plus Renewal/New Levies Modeled
	
16,064,941	16,230,925	17,775,967
	
18,952,324	19,867,568
	
+ Revenue
+ Proposed Renew/Replacement Levies + Proposed New Levies
‐ Expenditures
	44,666,397	46,415,951	47,052,684 ‐                                  ‐                                  ‐
‐	‐	‐ (44,500,413)             (44,870,908)             (45,876,327)
	47,901,363               48,446,874 102,764                     208,345
‐	‐ (47,088,883)             (48,325,873)
	
= Revenue Surplus or Deficit
	165,984	1,545,042	1,176,356
	915,244	329,346
	
Line 7.020 Ending Balance with renewal/new levies
	16,230,925	17,775,967	18,952,324
	19,867,568	20,196,914

Analysis Without Renewal Levies Included:
Revenue Surplus or Deficit w/o Levies Ending Balance w/o Levies
	165,984                  1,545,042                  1,176,356 16,230,925               17,775,967               18,952,324
	812,480                     121,001 19,764,804               19,885,805

In FY 2024 a revenue surplus is expected. This means that expenditures are expected to be less than revenue by ‐$165,984 in FY 2024. By the last year of the forecast, FY 2028, the district is expected to have a revenue surplus where expenditures are projected to be less than revenue by ‐$121,001 The district would need to cut its FY 2028 projected expenses by ‐0.25% in order to balance its budget without additional revenue.

The district's cash balance is positive at year‐end in FY 2024 and is projected to improve by FY 2028. A worsening cash balance can erode the district's financial stability over time.

Ohio adopted the Fair School Funding Plan (FSFP) in FY 2022. The plan was continued with increasing phase‐in of the formula results. In FY 2024 the per pupil base cost caclulations were updated from FY 2018 cost data to FY 2022. For Indian Hill Exempted Village School District the calculated Base Cost total is $16,982,716 in FY 2024. The state's share of the calculated Base Cost total is $1,719,815 or $809 per pupil.

formula district in FY 2023.

3

Forecast5 Analytics ReportWriter Software 2019 ©

Indian Hill Exempted Village School District

Revenue Sources and Forecast Year‐Over‐Year Projected Overview Sources of Revenue Over Time
$0
$0
$0
$102,764
$208,345
100.0%

80.0%
State Funding

60.0%

40.0%	 Real Estate

20.0%

State Funding

Real Estate

$32,975,315
$37,621,355
$36,900,503
$40,055,717
$43,970,255
$44,666,397
$46,415,951
$47,052,684
$47,901,363
$48,446,874
0.0%

2023	2028	2019	2020	2021	2022	2023	2024	2025	2026	2027	2028

Other Sources

State Share of Local Property Taxes Income Tax
Real Estate

$5,000,000

All Othr Op Rev State Funding
Public Utility

Renewal Levy Revenue

Year‐Over‐Year Dollar & Percentage Change

16.00%

$4,000,000

$3,000,000

$2,000,000

$1,000,000

$0

($1,000,000)

14.09%

8.55%

‐1.92%

2020	2021	2022

9.77%

3.92% 1.58%

2023	2024	2025

1.37%	2.02%	1.36%

2026	2027	2028

14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% ‐2.00%
‐4.00%

Annual Dollar Change	Annual Percentage Change

4‐Year Historical Actual Average Annual Dollar Change Compared to 5‐year Projected
	Historical Average Annual
$$ Change
	Projected Average Annual
$$ Change
	Projected Compared to Historical Variance
	Total revenue increased 7.62% or $2,748,735 annually during the past 4‐Year period and is projected to increase 2.05% or $936,993 annually through FY2028. Real Estate has the most projected average annual variance compared to the historical average at ‐ $1,265,876
	
Real Estate	1,959,280	693,404	($1,265,876) Public Utility                                                          $65,959	$21,636                  ($44,323) Income Tax                                                                      $0                           $0                              $0 State Funding                                                        $28,997	399,193                  $370,195 Prop Tax Alloc                                                       $42,443	$88,285                    $45,842 All Othr Op Rev                                                   $427,903               ($31,406)              ($459,310) Other Sources                                                     $224,152             ($234,119)              ($458,271)

Total Average Annual Change                           2,748,735                936,993            ($1,811,742) 7.62%                    2.05%                     ‐5.57%

Note: Expenditure average annual change is projected

to be >	$846,921 On an annual average basis, expenditures are projected to grow slower than revenue.

4

Forecast5 Analytics ReportWriter Software 2019 ©

Indian Hill Exempted Village School District

1.010 ‐ General Property Tax (Real Estate)

$158,886
Revenue collected from taxes levied by a school district by the assessed valuation of real property using effective tax rates for class I (residential/agricultural) and class II (business).

$0
$0
$0
$78,434
Real Estate as % of Total Revenue 100.0%

90.0%

80.0%
70.0%	67.2%	67.9%

$21,710,369
$24,634,247
$25,327,151
$27,509,471
$29,547,488
$30,721,378
$31,904,112
$32,053,694
$32,484,516
$32,855,621
60.0% 50.0% 40.0% 30.0% 20.0% 10.0%
0.0%

2023	2028	2019	2020	2021	2022	2023	2024	2025	2026	2027	2028

Renewal Levy Revenue

Year‐Over‐Year Dollar & Percentage Change

$3,500,000

$3,000,000

$2,500,000

$2,000,000

$1,500,000

$1,000,000

$500,000

$0

13.47%

8.62%
7.41%

3.97% 2.81%

2020	2021	2022	2023	2024

3.85%

1.59% 0.47%

2025	2026	2027

16.00%

14.00% 12.00% 10.00% 8.00% 6.00% 4.00%
1.39%      2.00% 0.00%
2028

Annual Dollar Change	Annual Percentage Change

Values, Tax Rates and Gross Collections
Tax Yr	Valuation	Value Change 2022               1,378,845,510             15,333,490 2023               1,768,245,510           389,400,000 2024               1,771,918,750               3,673,240 2025               1,779,113,750               7,195,000 2026               1,833,413,750             54,300,000 2027               1,839,853,750               6,440,000

Class I Rate 23.93 20.00 20.05 20.06 20.00 20.02

Change	Class II Rate	Change
‐	22.52	‐ (3.93)	21.54                        (0.98)
0.05                       21.62                          0.08 0.01                       21.64                          0.02 (0.06)                      21.12                        (0.53) 0.02                       21.17                          0.05

Gross Collection Rate Including Delinquencies 99.5% 99.3% 99.3% 99.3% 99.3% 99.3%

Real estate property tax revenue accounts for 67.20% of total revenue. Class I or residential/agricultural taxes make up approximately 89.92% of the real estate property tax revenue. The Class I tax rate is 20. mills in tax year 2023. The district is modeling the renewal of real estate property taxes levies through 2024. The projections reflect an average gross collection rate of 99.3% annually through tax year 2027. The revenue changed at an average annual historical rate of 8.08% and is projected to change at an average annual rate of 2.25% through FY 2028.

*Projected % trends include renewal levies

5

Forecast5 Analytics ReportWriter Software 2019 ©

$538,700
$602,605
$567,545
$796,949
$802,537
$819,959
$842,649
$865,339
$863,699
$861,444
Indian Hill Exempted Village School District

1.020 ‐ Public Utility Personal Property

Revenue generated from public utility personal property valuations multiplied by the district's full voted tax rate.

$0
$0
$0
$24,330
$49,275
PUPP as % of Total Revenue

100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0%
10.0%	1.8% 0.0%
2023

1.9%

2028	2019	2020	2021	2022	2023	2024	2025	2026	2027	2028

Renewal Levy Revenue

Year‐Over‐Year Dollar & Percentage Change

$250,000

$200,000

$150,000

$100,000

$50,000

$0

($50,000)

11.86%

‐5.82%

2020	2021

40.42%

0.70%	2.17%	2.77%	2.69%	2.62%

2022	2023	2024	2025	2026	2027

50.00%

40.00%

30.00%

20.00%

10.00%

2.56%      0.00%

‐10.00% 2028

Annual Dollar Change	Annual Percentage Change

Values and Tax Rates
Tax Year	Valuation 2022                   17,780,340 2023                   18,280,340 2024                   18,780,340 2025                   19,280,340 2026                   19,780,340 2027                   20,280,340

Value Change 434,580 500,000 500,000 500,000 500,000 500,000

Full Voted Rate	Change 45.38                           ‐ 45.38                           ‐ 45.38                           ‐ 45.38                           ‐ 45.38                           ‐ 45.38                           ‐

Gross Collection Rate Including Delinquencies 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

The public utility personal property tax revenue is generated from the personal property values, additions, and depreciation reported by the utility companies. This category currently makes up 1.83% of total district revenue. The property is taxed at the full voted tax rate which in tax year 2023 is 45.38 mills. The forecast is modeling an average gross collection rate of 100.00%. The revenue changed historically at an average annual dollar amount of $65,959 and is projected to change at an average annual dollar amount of $21,636 through FY 2028.

*Projected % trends include renewal levies

6

Forecast5 Analytics ReportWriter Software 2019 ©

Indian Hill Exempted Village School District

1.030 ‐ No Income Tax

Revenue collected from income tax earmarked specifically to support schools with a voter approved tax by residents of the school district; separate from federal, state and municipal income taxes.

Income Tax as % of Total Revenue 100.0%

90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0%
$0
$0
$0
$0
$0
$0$0
$0$0
$0$0
$0$0
$0$0
10.0%	0.0%	0.0% 0.0%

2023	2028	2019	2020	2021	2022	     2023	2024	2025	2026	2027	2028 Renewal Levy Revenue

Year‐Over‐Year Dollar & Percentage Change

$1 $1 $1 $1 $1 $1 $0 $0 $0 $0
$0		0.00%	0.00%	0.00%	0.00%	0.00% 2020                          2021                          2022                          2023                          2024

0.00%	0.00%	0.00% 2025                          2026                          2027

100.00% 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00%
0.00%       0.00% 2028

Annual Dollar Change	Annual Percentage Change

The district does not have an income tax levy.

*Projected % trends include renewal levies

7

Forecast5 Analytics ReportWriter Software 2019 ©

Indian Hill Exempted Village School District

1.035 ‐ Unrestricted Grants‐in‐Aid

Funds received through the State Foundation Program with no restriction.

Unrestricted as % of Total Revenue

100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0%
20.0%

10.0%	3.0%	6.7%

0.0%
2023	2028

$1,451,035
$1,399,482
$1,381,519
$1,266,932
$1,334,754
$2,016,140
$2,362,929
$2,764,304
$3,127,285
$3,252,503
2019	2020	2021	2022	2023	2024	2025	2026	2027	2028

Year‐Over‐Year Dollar & Percentage Change

$800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 ($100,000)
($200,000)

5.35% ‐3.55%	‐1.28%	‐8.29%

2020	2021	2022	2023

51.05%

17.20%	16.99%	13.13%

2024	2025	2026	2027

60.00%

50.00%

40.00%

30.00%

20.00%

10.00% 4.00%      0.00%

‐10.00%

‐20.00% 2028

Annual Dollar Change

District Educated Enrollment

2,127 2,144 2,158 2,171 2,182 2,102	2,100

2,067

2,031 2,013

1,985

Annual Percentage Change

Beginning in FY 2022 Ohio adopted the Fair School Funding Plan (FSFP). Funding is driven by a base cost methodology that incorporates the four components identified as necessary to the education process. The Base Cost is currently calculated for two years using a statewide average from historical actual data.

For Indian Hill Exempted Village School District the calculated Base Cost total is $16,982,716 in FY 2024.
The state's share of the calculated Base Cost total is $1,719,815 or $809 per pupil.

The FSFP also started funding students where they attended school. Therefore district educated enrollment is now used for per pupil funding. At the same time, the FSFP eliminated tuition transfer payments from school districts.

FY 2018FY 2019FY 2020FY 2021FY 2022FY 2023FY 2024FY 2025FY 2026FY 2027FY 2028

8

Forecast5 Analytics ReportWriter Software 2019 ©

Indian Hill Exempted Village School District

1.040 & 1.045 ‐ Restricted Grants‐in‐Aid

Funds received through the State Foundation Program or other allocations that are restricted for specific purposes.

Restricted as % of Total Revenue 100.0%

$127,274
$134,553
$144,557
$279,267
$359,545
$400,297
$411,226
$423,190
$432,895
$437,760
90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0%
10.0%	0.8%	0.9%
0.0%		2019	2020	2021	2022	2023	2024	2025	2026	2027	2028 2023                                      2028

Year‐Over‐Year Dollar & Percentage Change

$160,000

$140,000

$120,000

$100,000

$80,000

$60,000

$40,000

$20,000

$0

5.72%	7.44%

2020	2021

93.19%

28.75%

2022	2023

11.33%

2.73%	2.91%	2.29%

2024	2025	2026	2027

100.00% 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00%
1.12%      0.00%

2028

Annual Dollar Change	Annual Percentage Change

Restricted aid is the portion of state per pupil funding that must be classifed as restricted use. Historically the district's restricted state aid changed annually on average by $74,997 and is projected to change annually on average by $15,643. Restricted funds represent 0.82% of total revenue. Starting in FY 2022 the district's Success & Wellness funding is considered restricted, the state's share of this funding is recorded as restricted is $53,650. This funding has implications on general fund expenditures in that certain spending now occuring in a fund external to the general fund could shift to the general fund. The expenditures in this forecast are adjusted to reflect this change.

9

Forecast5 Analytics ReportWriter Software 2019 ©

$3,069,316
$3,062,553
$3,147,629
$3,210,180
$3,239,088
$3,394,573
$3,551,265
$3,568,716
$3,624,616
$3,680,330
Indian Hill Exempted Village School District

1.050 ‐ State Share of Local Property Taxes

Includes funds received for Tangible Personal Property Tax Reimbursement, Electric Deregulation, Homestead and Rollback.

$0
$0
$0
$0
$184
State Share of Local Property Taxes

100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0%
20.0%
10.0%	7.4%

0.0%
2023

7.6%

2028	2019	2020	2021	2022	2023	2024	2025	2026	2027	2028

Renewal Levy Revenue

Year‐Over‐Year Dollar & Percentage Change

$180,000 $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0
($20,000)

4.80%	4.62%

2.78%

1.99%                                                                                                                                                               1.57% 0.90%                                                                                           0.49%
‐0.22%

2020	2021	2022	2023	2024	2025	2026	2027

6.00%

5.00%

4.00%

3.00%

2.00% 1.54%
1.00%

0.00%

‐1.00% 2028

Annual Dollar Change	Annual Percentage Change

State Share of Local Property Taxes primarily consists of reimbursements from the state of Ohio for local taxpayer credits or reductions. The state reduces the local taxpayer's tax bill with a 10% rollback credit, and 2.5% owner‐occupied rollback credit, plus a homestead credit for qualifying taxpayers. In FY 2024, approximately 10.5% local residential property taxes will be reimbursed by the state in the form of rollback credits and approximately 0.3% will be reimbursed in the form of qualifying homestead exemption credits.

*Projected % trends include renewal levies

10

Forecast5 Analytics ReportWriter Software 2019 ©

Indian Hill Exempted Village School District

1.060 ‐ All Other Operating Revenues

Operating revenue sources not included in other lines; examples include tuition, fees, earnings on investments, rentals, and donations.

Other Revenue as % of Total Revenue 100.0%

90.0% 80.0% 70.0% 60.0% 50.0% 40.0%
$5,759,634
$7,692,335
$6,288,987
$6,970,868
$7,471,248
$7,247,233
$7,298,770
$7,332,441
$7,323,353
$7,314,217
30.0%
20.0%     	17.0%	15.0%	

10.0%

0.0%

2023	2028	2019	2020	2021	2022	2023	2024	2025	2026	2027	2028

Year‐Over‐Year Dollar & Percentage Change

$2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 ($500,000)
($1,000,000)

($1,500,000)

33.56%

10.84%	7.18%

‐3.00%	0.71%	0.46%

‐18.24%

40.00%

30.00%

20.00%

10.00%

‐0.12%	‐0.12% 0.00%

‐10.00%

‐20.00%

($2,000,000)
2020	2021	2022	2023	2024	2025	2026

‐30.00% 2027	2028

Annual Dollar Change	Annual Percentage Change

Other revenue includes tuition received by the district for non‐resident students educated by the district. It also includes interest income, payments in lieu of taxes, and miscellaneous revenue. The historical average annual change was $427,903. The projected average annual change is ‐$31,406 through FY 2028.

11

Forecast5 Analytics ReportWriter Software 2019 ©

Indian Hill Exempted Village School District

2.070 ‐ Total Other Financing Sources

Includes proceeds from sale of notes, state emergency loans and advancements, operating transfers‐in, and all other financing sources like sale and loss of assets, and refund of prior year expenditures.

Other Sources as % of Total Revenue

100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0%
10.0%	2.8%

0.0%
2023

$318,985
$95,581
$43,114
$22,050
$1,215,595
$66,817
$45,000
$45,000
$45,000
$45,000
0.1%
2019	2020	2021	2022	2023	2024	2025	2026	2027	2028
2028

Year‐Over‐Year Dollar & Percentage Change

$1,500,000

$1,000,000

$500,000

$0

($500,000)

($1,000,000)

($1,500,000)

‐70.04%

2020

‐54.89%

2021

‐48.86%

2022

5412.80%

2023

‐94.50%

2024

‐32.65%	0.00%	0.00%

2025	2026	2027

6000.00%

5000.00%

4000.00%

3000.00%

2000.00%

1000.00%

0.00%      0.00%

‐1000.00% 2028

Annual Dollar Change	Annual Percentage Change

	FORECASTED
	
	2023
	2024
	2025
	2026
	2027
	2028
	
Transfers In
	‐
	‐
	‐
	‐
	‐
	‐
	
Advances In
	1,214,045
	51,817
	30,000
	30,000
	30,000
	30,000
	
All Other Financing Sources
	1,550
	15,000
	15,000
	15,000
	15,000
	15,000

Other sources includes revenue that is generally classified as non‐operating. Return advances‐in are the most common revenue source. In FY 2023 the district receipted $1,214,045 as advances‐in and is projecting advances of $51,817 in FY 2024. The district also receives other financing sources such as refund of prior year expenditures in this category. The district is projecting that all other financing sources will be $15,000 in FY 2024 and average $15,000 annually through FY 2028.

12

Forecast5 Analytics ReportWriter Software 2019 ©

Indian Hill Exempted Village School District

Expenditure Categories and Forecast Year‐Over‐Year Projected Overview Expenditure Categories Over Time

					

					
					
	Benefits
		Benefits

					

	Salaries
		Salaries

					
100.0%

90.0%

80.0%

70.0%

60.0%

50.0%

40.0%

$36,274,028
$41,413,227
$35,884,047
$39,666,086
$44,091,270
$44,500,413
$44,870,908
$45,876,327
$47,088,883
$48,325,873
30.0%

20.0%

10.0%

0.0%

2023	2028	2019	2020	2021	2022	2023	2024	2025	2026	2027	2028 Salaries                                         Benefits
Purchased Services	Supplies & Materials Capital Outlay	Intergov & Debt Other Objects	Other Uses

Year‐Over‐Year Dollar & Percentage Change

$6,000,000

$4,000,000

$2,000,000

$0

($2,000,000)

($4,000,000)

($6,000,000)

($8,000,000)

14.17%

10.54%	11.16%

0.93%	0.83%	2.24%	2.64%

‐13.35%

2020	2021	2022	2023	2024	2025	2026	2027

20.00%

15.00%

10.00%

5.00% 2.63%
0.00%

‐5.00%

‐10.00%

‐15.00% 2028

Annual Dollar Change	Annual Percentage Change

4‐Year Historical Actual Average Annual Dollar Change Compared to 5‐Year Projected
	Historical Average Annual
$$ Change
	Projected Average Annual
$$ Change
	Projected Compared to Historical Variance
	Total expenditures increased 5.63% or $1,954,311 annually during the past 4‐Year period and is projected to increase 1.92% or $846,921 annually through FY2028. Purchased Services has the largest projected average annual variance compared to the historical average at ‐$569,162.
	
Salaries	884,795	608,724	($276,071) Benefits                                                                  $157,780              $395,868                 $238,088 Purchased Services                                              $486,309               ($82,853)	($569,162) Supplies & Materials                                            $127,740	$22,145	($105,595) Capital Outlay                                                            $3,051             ($147,327)	($150,378) Intergov & Debt                                                    $140,841	$94,606                 ($46,236) Other Objects	$23,130                   $8,774                 ($14,356) Other Uses                                                            $130,665               ($53,014)	($183,679)
		
Total Average Annual Change                           $1,954,311              $846,921           ($1,107,390) 5.63%                    1.92%                    ‐3.71%

Note: Revenue average annual change is projected to

be > $936,993	On an annual average basis, revenues are projected to grow faster than expenditures.

13

Forecast5 Analytics ReportWriter Software 2019 ©

Indian Hill Exempted Village School District

3.010 ‐ Personnel Services

Employee salaries and wages, including extended time, severance pay, supplemental contracts, etc.

Salaries as % of Total Expenditures 100.0%

90.0% 80.0%
70.0%
60.0%     	55.3%	56.8%	

$20,847,735
$21,667,178
$21,565,695
$22,135,319
$24,386,915
$24,862,327
$25,478,047
$26,000,741
$26,723,204
$27,430,534
50.0% 40.0% 30.0% 20.0% 10.0%
0.0%
2023	2028	2019	2020	2021	2022	2023	2024	2025	2026	2027	2028

Year‐Over‐Year Dollar & Percentage Change

$2,500,000

$2,000,000

$1,500,000

$1,000,000

$500,000

$0

10.17%

3.93%
2.64%	1.95%	2.48%	2.05%	2.78%

‐0.47%

12.00%

10.00%

8.00%

6.00%

4.00% 2.65%     2.00%

0.00%

($500,000)
2020	2021	2022	2023	2024	2025	2026

‐2.00% 2027	2028

Annual Dollar Change	Annual Percentage Change

Salaries represent 55.31% of total expenditures and increased at a historical average annual rate of 4.07% or $884,795. This category of expenditure is projected to grow at an annual average rate of 2.38% or $608,724 through FY 2028. The projected average annual rate of change is ‐1.69% less than the five year historical annual average.

14

Forecast5 Analytics ReportWriter Software 2019 ©

$7,394,948
$7,453,139
$6,819,714
$7,599,775
$8,026,067
$8,339,212
$8,730,596
$9,111,768
$9,547,218
$10,005,406
Indian Hill Exempted Village School District

3.020 ‐ Employees' Benefits

Retirement for all employees, Workers Compensation, early retirement incentives, Medicare, unemployment, pickup on pickup, and all health‐ related insurances.

Benefits as % of Total Expenditures

100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0%
30.0%
20.0%	18.2%

10.0%

0.0%
2023

20.7%

2019	2020	2021	2022	2023	2024	2025	2026	2027	2028

2028

Year‐Over‐Year Dollar & Percentage Change

$1,000,000

$800,000	11.44% $600,000

$400,000	5.61%
$200,000	3.90%

$0	0.79% ($200,000)

15.00%

10.00%

4.69%	4.37%	4.78%	4.80%     5.00%

0.00%

($400,000) ($600,000)
($800,000)
2020

‐8.50%

2021	2022	2023	2024	2025	2026	2027

‐5.00%

‐10.00% 2028

Annual Dollar Change	Percentage of Total Budget

Benefits represent 18.20% of total expenditures and increased at a historical average annual rate of 2.33% This category of expenditure is projected to grow at an annual average rate of 4.51% through FY 2028. The projected average annual rate of change is 2.17% more than the five year historical annual average.

15

Forecast5 Analytics ReportWriter Software 2019 ©

Indian Hill Exempted Village School District

3.030 ‐ Purchased Services

Amounts paid for personal services rendered by personnel who are not on the payroll of the school district, expenses for tuition paid to other districts, utilities costs and other services which the school district may purchase.

Purchased Services as % of Total Expenditures

$4,781,196
$4,398,282
$4,878,255
$5,591,673
$6,726,431
$6,415,302
$6,272,938
$6,295,911
$6,297,980
$6,312,165
100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0%
30.0%
20.0%     	15.3%	13.1%	

10.0%
0.0%	2019	2020	2021	2022	2023	2024	2025	2026	2027	2028

2023	2028

Year‐Over‐Year Dollar & Percentage Change

$1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 ($200,000) ($400,000)
($600,000)

20.29%

14.62% 10.91%

0.37%
‐2.22% ‐4.63%

‐8.01%

2020	2021	2022	2023	2024	2025	2026

25.00%

20.00%

15.00%

10.00%

5.00%

0.03%	0.23%     0.00%

‐5.00%

‐10.00% 2027	2028

Annual Dollar Change	Annual Percentage Change

Purchased Services represent 15.26% of total expenditures and increased at a historical average annual rate of 9.46%. This category of expenditure is projected to decrease at an annual average rate of ‐1.24% through FY 2028 The FSFP funds only district educated enrollment thereby reducing tuition cost for open enrollment out, community schools, STEM, and scholarships starting in FY 2022. This change resulted in lower district cost but also less per pupil state revnue since per pupil funding was paid directly by the state to the attending school.

16

Forecast5 Analytics ReportWriter Software 2019 ©

Indian Hill Exempted Village School District

3.040 ‐ Supplies & Materials

Expenditures for general supplies, instructional materials including textbooks and media material, bus fuel and tires, and all other maintenance supplies.

Supplies & Materials as % of Total Expenditures

$1,323,215
$1,286,874
$1,457,837
$1,459,815
$1,834,174
$1,882,761
$1,896,043
$1,914,196
$1,925,640
$1,944,897
100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0%
10.0%     	4.2%	4.0%	

0.0%
2023	2028

2019	2020	2021	2022	2023	2024	2025	2026	2027	2028

Year‐Over‐Year Dollar & Percentage Change

$400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 ($50,000)
($100,000)

13.29%

0.14% ‐2.75%

2020	2021	2022

25.64%

2.65%	0.71%	0.96%	0.60%

2023	2024	2025	2026	2027

30.00%

25.00%

20.00%

15.00%

10.00%

5.00% 1.00%     0.00%

‐5.00% 2028

Annual Dollar Change	Annual Percentage Change

Supplies & Materials represent 4.16% of total expenditures and increased at a historical average annual rate of 9.08%. This category of expenditure is projected to grow at an annual average rate of 1.18% through FY 2028. The projected average annual rate of change is ‐7.90% less than the five year historical annual average.

17

Forecast5 Analytics ReportWriter Software 2019 ©

Indian Hill Exempted Village School District

3.050 ‐ Capital Outlay

This line includes expenditures for items having at least a five‐year life expectancy, such as land, buildings, improvements of grounds, equipment, computers/technology, furnishings, and buses.

Capital Outlay 100.0%

90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0%
10.0%	3.3%	1.4% 0.0%
2023	2028

$1,424,434
$6,107,228
$678,248
$788,150
$1,436,637
$1,100,000
$550,000
$600,000
$650,000
$700,000
2019	2020	2021	2022	2023	2024	2025	2026	2027	2028

Year‐Over‐Year Dollar & Percentage Change

$6,000,000

$4,000,000

$2,000,000

$0

($2,000,000)

($4,000,000)

328.75%

82.28%

16.20%

‐88.89%

9.09% ‐23.43%	‐50.00%

350.00% 300.00% 250.00% 200.00% 150.00% 100.00%
50.00% 8.33%	7.69% 0.00%

‐50.00%

‐100.00%

($6,000,000)
2020	2021	2022	2023

‐150.00% 2024	2025	2026	2027	2028

Annual Dollar Change	Annual Percentage Change

Capital Outlay represent 3.26% of total expenditures and increased at a historical average annual amount of $3,051. This category of expenditure is projected to decrease at an annual average rate of ‐$147,327 through FY 2028. The projected average annual change is less than the five year historical annual average.

18

Forecast5 Analytics ReportWriter Software 2019 ©

Indian Hill Exempted Village School District

3.060‐4.060 ‐ Intergovernmental & Debt

These lines account for pass through payments, as well as monies received by a district on behalf of another governmental entity, plus principal and interest payments for general fund borrowing.

Debt as % of Total Expenditures

100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0%
10.0%	1.3% 0.0%
2023

$0
$0
$29,175
$339,096
$563,365
$1,018,822
$1,056,404
$1,062,091
$1,053,600
$1,036,393
2.1%

2028	2019	2020	2021	2022	2023	2024	2025	2026	2027	2028

Year‐Over‐Year Dollar & Percentage Change

$500,000

$400,000

$300,000

$200,000

$100,000

$0

1062.30%

0.00%	0.00%	66.14%	80.85%	3.69%	0.54%

1200.00%

1000.00%

800.00%

600.00%

400.00%

200.00%

‐0.80%	‐1.63% 0.00%

($100,000)
2020	2021	2022	2023	2024	2025

‐200.00% 2026	2027	2028

Annual Dollar Change	Annual Percentage Change

The Intergovernmental/Debt expenditure category details general fund debt issued by the District.

19

Forecast5 Analytics ReportWriter Software 2019 ©

Indian Hill Exempted Village School District

4.300 ‐ Other Objects

Primary components for this expenditure line are membership dues and fees, ESC contract deductions, County Auditor/Treasurer fees, audit expenses, and election expenses.

Other Objects as % of Total Expenditures

100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0%
10.0%	1.2% 0.0%
2023

$420,091
$480,976
$436,519
$538,213
$512,611
$541,990
$546,880
$551,620
$551,241
$556,479
1.2%

2028	2019	2020	2021	2022	2023	2024	2025	2026	2027	2028

Year‐Over‐Year Dollar & Percentage Change

$120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 ($20,000)
($40,000)

23.30%

14.49%

5.73%

0.90%	0.87%

‐4.76%

‐9.24%

25.00%

20.00%

15.00%

10.00%

5.00% ‐0.07%	0.95%     0.00%

‐5.00%

‐10.00%

($60,000)
2020	2021	2022	2023	2024	2025	2026

‐15.00% 2027	2028

Annual Dollar Change	Annual Percentage Change

Other Objects represent 1.16% of total expenditures and increased at a historical average annual rate of 5.95%. This category of expenditure is projected to grow at an annual average rate of 1.68% through FY 2028. The projected average annual rate of change is ‐4.27% less than the five year historical annual average.

20

Forecast5 Analytics ReportWriter Software 2019 ©

$82,409
$19,549
$18,605
$1,214,045
$605,070
$340,000
$340,000
$340,000
$340,000
$340,000
Indian Hill Exempted Village School District

5.040 ‐ Total Other Financing Uses

Operating transfers‐out, advances out to other funds, and all other general fund financing uses.

Other Objects as % of Total Expenditures

100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0%
10.0%	1.4% 0.0%
2023

0.7%

2028	2019	2020	2021	2022	2023	2024	2025	2026	2027	2028

Year‐Over‐Year Dollar & Percentage Change

$1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 ($200,000) ($400,000) ($600,000) ($800,000)

‐76.28%	‐4.83%

2020	2021

6425.22%

‐50.16%

2022	2023

‐43.81%	0.00%	0.00%

2024	2025	2026

7000.00%

6000.00%

5000.00%

4000.00%

3000.00%

2000.00%

1000.00%

0.00%	0.00% 0.00%

‐1000.00% 2027	2028

Annual Dollar Change	Annual Percentage Change

	FORECASTED
	
	2023
	2024
	2025
	2026
	2027
	2028
	
Transfers Out
	553,253
	310,000
	310,000
	310,000
	310,000
	310,000
	
Advances Out
	51,817
	30,000
	30,000
	30,000
	30,000
	30,000
	
Other Financing Uses
	‐
	‐
	‐
	‐
	‐
	‐

Other uses includes expenditures that are generally classified as non‐operating. It is typically in the form of advances‐out which are then repaid into the general fund from the other district funds. In FY 2023 the district had advances‐out and has advances‐out forecasted through FY 2028. The district can also move general funds permanently to other funds and as the schedule above presents, the district has transfers forecasted through FY 2028. The table above presents the district's planned advances and transfers. The district can also have other uses of funds which is reflected in the table above.

21

Forecast5 Analytics ReportWriter Software 2019 ©

Indian Hill Exempted Village School District Five Year Forecast

Fiscal Year:
	Actual
	FORECASTED
	
	2023
	2024	2025	2026	2027	2028
	
Revenue:
1.010 ‐ General Property Tax (Real Estate) 1.020 ‐ Public Utility Personal Property 1.030 ‐ Income Tax
1.035 ‐ Unrestricted Grants‐in‐Aid 1.040 ‐ Restricted Grants‐in‐Aid
1.050 ‐ State Share‐Local Property Taxes 1.060 ‐ All Other Operating Revenues
	
29,547,488 802,537
‐ 1,334,754
359,545 3,239,088 7,471,248
	
30,721,378                31,904,112                32,053,694                32,484,516                32,855,621 819,959                      842,649                      865,339                      863,699                      861,444
‐	‐	‐	‐	‐ 2,016,140                   2,362,929                   2,764,304                   3,127,285                   3,252,503
400,297	411,226	423,190	432,895	437,760 3,394,573                   3,551,265                   3,568,716                   3,624,616                   3,680,330 7,247,233                   7,298,770                   7,332,441                   7,323,353                   7,314,217
	
1.070 ‐ Total Revenue
	42,754,660
	44,599,580	46,370,951	47,007,684	47,856,364	48,401,875
	
Other Financing Sources:
2.010 ‐ Proceeds from Sale of Notes 2.020 ‐ State Emergency Loans and Adv 2.040 ‐ Operating Transfers‐In
2.050 ‐ Advances‐In
2.060 ‐ All Other Financing Sources 2.070 ‐ Total Other Financing Sources
	
‐ ‐ ‐
1,214,045 1,550
	
‐	‐	‐	‐	‐ ‐	‐	‐	‐	‐ ‐	‐	‐	‐	‐
51,817                        30,000                        30,000                        30,000                        30,000 15,000                        15,000                        15,000                        15,000                        15,000
	
	1,215,595
	66,817	45,000	45,000	45,000	45,000
	
2.080 ‐ Total Rev & Other Sources
	43,970,255
	44,666,397	46,415,951	47,052,684	47,901,363	48,446,874
	
Expenditures:
3.010 ‐ Personnel Services 3.020 ‐ Employee Benefits 3.030 ‐ Purchased Services 3.040 ‐ Supplies and Materials 3.050 ‐ Capital Outlay
Intergovernmental & Debt Service
4.300 ‐ Other Objects
	
24,386,915 8,026,067 6,726,431 1,834,174 1,436,637 563,365
512,611
	
24,862,327	25,478,047	26,000,741	26,723,204	27,430,534 8,339,212                   8,730,596                   9,111,768                   9,547,218	10,005,406 6,415,302                   6,272,938                   6,295,911                   6,297,980                   6,312,165 1,882,761                   1,896,043                   1,914,196                   1,925,640                   1,944,897 1,100,000                      550,000                      600,000                      650,000                      700,000 1,018,822                   1,056,404                   1,062,091                   1,053,600                   1,036,393
541,990	546,880	551,620	551,241	556,479
	
4.500 ‐ Total Expenditures
	43,486,200
	44,160,413	44,530,908	45,536,327	46,748,884	47,985,873
	
Other Financing Uses
5.010 ‐ Operating Transfers‐Out 5.020 ‐ Advances‐Out
5.030 ‐ All Other Financing Uses 5.040 ‐ Total Other Financing Uses
	
553,253 51,817
‐
	
310,000                      310,000                      310,000                      310,000                      310,000 30,000                        30,000                        30,000                        30,000                        30,000
‐	‐	‐	‐	‐
	
	605,070
	340,000	340,000	340,000	340,000	340,000
	
5.050 ‐ Total Exp and Other Financing Uses
	44,091,270
	44,500,413	44,870,908	45,876,327	47,088,883	48,325,873

6.010 ‐ Excess of Rev Over/(Under) Exp
	(121,015)
	165,984	1,545,042	1,176,356	812,480	121,001

7.010 ‐ Cash Balance July 1 (No Levies)
	16,185,956
	16,064,941	16,230,925	17,775,967	18,952,324	19,764,804
	
7.020 ‐ Cash Balance June 30 (No Levies)
	16,064,941
	16,230,925	17,775,967	18,952,324	19,764,804	19,885,805

	Reservations
		
8.010 ‐ Estimated Encumbrances June 30 9.080 ‐ Reservations Subtotal
	‐ ‐
	500,000	500,000	500,000	500,000	500,000 ‐                                    ‐                                    ‐                                    ‐                                    ‐
	
10.010 ‐ Fund Bal June 30 for Cert of App
	16,064,941
	15,730,925	17,275,967	18,452,324	19,264,804	19,385,805
	
Rev from Replacement/Renewal Levies 11.010 & 11.020 ‐ Renewal Levies 11.030 ‐ Cumulative Balance of Levies

‐
	
‐                                    ‐                                    ‐                           102,764                      208,345 ‐                                    ‐                                    ‐                           102,764                      311,109
	
12.010 ‐ Fund Bal June 30 for Cert of Obligations
	16,064,941
	15,730,925	17,275,967	18,452,324	19,367,568	19,696,914
	
Revenue from New Levies 13.010 & 13.020 ‐ New Levies
13.030 ‐ Cumulative Balance of New Levies

‐
	
‐                                    ‐                                    ‐                                    ‐                                    ‐ ‐                                    ‐                                    ‐                                    ‐                                    ‐
	
15.010 ‐ Unreserved Fund Balance June 30
	16,064,941
	15,730,925	17,275,967	18,452,324	19,367,568	19,696,914

22

Forecast5 Analytics ReportWriter Software 2019 ©