Elmhurst D205 Gets Lowest Financial Rating

ELMHURST, IL – Elmhurst School District 205 is among the state's wealthiest school systems, but it's one of a handful of districts that has received the state's worst financial rating.

On Friday, the district said it received a preliminary indication that it has returned to the top category.

In September, the Illinois School Board of Education released its designations for all 851 school districts.

Seven received "watch" status, including Elmhurst. According to the agency's website, that means the state will closely monitor the district's finances and possibly set up a financial oversight panel. The state has previously set up such panels for districts in East St. Louis and North Chicago, among others.

A year ago, the local district was among 10 that were designated as "early warning."

This year, 90 percent of districts are in the top category – "financial recognition." Another 8 percent were in the second category of "financial review."

Elmhurst stands out in that its population is far wealthier than those of the other six districts that received "watch" status.

In Elmhurst, 17 percent of students come from low-income families, according to the Illinois Report Card website.

Of the other six, south suburban Dolton District 148 had the highest percentage of low-income students, at 98 percent. The other districts were in downstate, with low-income student populations ranging from 41 percent to 70 percent.

Last year, District 205 explained its "early warning" status by pointing to a change in its accounting method in 2020. That was also the reason given for the recent "watch" designation.

In an email to Patch on Friday, Tonya Daniels, the district's spokeswoman, said a preliminary review of the district's annual financial report shows that District 205 will again be in the highest category of "financial recognition."

"The district’s focus on fiscal responsibility, coupled with its substantial investments in curriculum, staffing, facilities, and technology, ensures that Elmhurst District 205 is positioned for continued academic success and financial health," she said.

The district traced its current rating to its June 30, 2023, annual financial report.

"In 2020, as a result of possible State penalties that were going to be given if Districts carried a large fund balance, the district changed the accounting method to an approach which did not account the June tax collection as revenues until the following fiscal year," Daniels said.

The change, she said, resulted in lower fund balances for the district's audits from 2020 to 2023.

"Given the negative impact that this change in accounting method had on our financial profile score, and the incorrect representation of our finances, we changed our accounting back to recognizing the June tax collection when it is received," she said.