Responsibilities of Management for the Financial Statements The District’s 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. Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ 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 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, 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 other required supplementary information as listed in the table of contents 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.

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. 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 revenues, expenditures and changes in fund balances – budget and actual – cash basis for the debt service fund and capital projects fund are presented for purposes of additional analysis and are not a required part of the basic financial statements. The supplementary 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. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of revenues, expenditures and changes in fund balances – budget and actual – cash basis for the debt service fund and capital projects fund is fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information. The other information comprises the annual financial information and operating data but does not include the financial statements and our auditors’ report thereon. Our opinions on the financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 4, 2023 on our consideration of the District’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of 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. St. Louis, Missouri December 4, 2023

St. Louis, Missouri December 4, 2023 SCHOOL DISTRICT OF CLAYTON MANAGEMENT'S DISCUSSION AND ANALYSIS - UNAUDITED Year ended June 30, 2023 The Management’s Discussion and Analysis (MD&A) of the School District of Clayton’s (District) financial performance provides a narrative overview of the District’s financial activities for the fiscal year ended June 30, 2023. The MD&A should not be taken as a replacement for the financial statements and other supplemental information but should be read in conjunction with them to enhance the reader’s understanding of the District’s financial performance. Financial Highlights Key financial highlights for the fiscal year ended June 30, 2023 are as follows:  The total assets and deferred outflows of the District exceeded its liabilities and deferred inflows at the end of the 2023 fiscal year by $63.7 million (net position).  Net position increased approximately $14.3 million or 28.8% from the prior year. Major increases in assets were due to an increase in cash of approximately $5.3 million, an increase in property tax receivable of $2.3 million and an increase in capital assets of approximately $1.5 million. Current liabilities had an increase of approximately $4.6 million primarily due to a change in debt payments within one year. Noncurrent liabilities had an increase of approximately $23.3 million as debt due in more than one year decreased by $10.3 million and the net pension liability had an increase of approximately $33.5 million as discussed below.  Recording the District's proportionate share of total net PSRS/PEERS pension liability per GASB 68, has a significant impact on the Statement of Net Position and the Statement of Activities. Updated actuarial assumptions in the retirement program's most recent valuation as of June 30, 2022 resulted in large fluctuations from the prior year. On the Statement of Net Position, total net pension liability increased by $33.5 million from the prior year and deferred inflows for pension deferrals decreased by $33.7 million from the prior year. On the Statement of Activities, the expenditures increased by $9.8 primarily due to the prior year's recording of a decrease in net pension liability which lowered the prior year's expenditures. On a cash basis, the expenditures increased by $2.6 million.  General revenues totaled $69.1 million or 84.4% of all revenues. Program revenues in the form of charges for services and operating grants and contributions accounted for $12.8 million or 15.6% of all revenues.  Total expenses for the year were $67.6 million of which $54.8 million were funded by general revenues.  The General Fund had $23.0 million in revenues and $20.4 million in expenditures. The General Fund’s balance increased $2.6 million before transfers.  The Special Revenue Fund had $36.6 million in revenues and $35.5 million in expenditures. The Special Revenue Fund’s balance increased $1.1 million before transfers.  The Debt Service Fund had $9.0 million in revenues and $6.5 million in expenditures. The Debt Service Fund’s balance increased $2.5 million.  The Capital Projects Fund had $6.2 million in revenues and $7.0 million in expenditures. The Capital Projects Fund’s balance decreased $0.8 million before transfers. - 7 -

The Debt Service Fund’s balance increased $2.5 million.  The Capital Projects Fund had $6.2 million in revenues and $7.0 million in expenditures. The Capital Projects Fund’s balance decreased $0.8 million before transfers. - 7 - SCHOOL DISTRICT OF CLAYTON MANAGEMENT'S DISCUSSION AND ANALYSIS - UNAUDITED Year ended June 30, 2023 Using this Annual Report The District’s annual report consists of a series of financial statements that show information about the District as a whole, including its significant funds. The Statement of Net Position and the Statement of Activities (pages 19 and 20) provide information about the activities of the District as a whole and present a longer-term view of the District’s 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. Fund statements may also provide insight into the District’s overall financial health. Fund financial statements report the District’s operations in more detail than the government-wide financial statements by providing information about the District’s most significant funds. The notes to the basic financial statements provide further explanation of some of the information in the statements and provide additional disclosures and more detailed data. This will allow statement readers to have a more complete description and understanding of the District’s financial activities and position. The District prepares its annual budget on the cash basis of accounting, meaning that revenues are recognized when the District receives the money and the expenditures are recognized when money is disbursed. To meet Governmental Accounting Standards Board (GASB) Statement No. 34, the District’s annual report uses both the modified accrual and accrual methods of accounting. Because of this difference, budget schedules will differ from the basic financial statements. The District’s auditor has provided assurance in the Independent Auditors’ Report, located immediately preceding this MD&A, that the basic financial statements are presented fairly in all material respects. Varying degrees of assurance are provided by the auditor regarding supplemental information. A user of this report should read the Independent Auditors’ Report carefully to ascertain the level of assurance being provided for each of the other parts in the financial section. - 8 -

Varying degrees of assurance are provided by the auditor regarding supplemental information. A user of this report should read the Independent Auditors’ Report carefully to ascertain the level of assurance being provided for each of the other parts in the financial section. - 8 - SCHOOL DISTRICT OF CLAYTON MANAGEMENT'S DISCUSSION AND ANALYSIS - UNAUDITED Year ended June 30, 2023 Reporting the District as a Whole Statement of Net Position and the Statement of Activities The analysis of the District as a whole begins on page 19. This analysis provides answers to whether the District is financially stronger or weaker as a result of the year’s activities. The Statement of Net Position and the Statement of Activities, which appear first in the District’s financial statements, report information on the District as a whole and its activities in a way that helps answer this question. These statements include all assets and liabilities, using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. This basis of accounting takes into account all of the current year’s revenues and expenses regardless of when cash is received or paid. These two statements report the District’s net position – the difference between assets and deferred outflows compared to liabilities and deferred inflows, as reported in the Statement of Net Position. It is one way to measure the District’s financial health, or financial position. Over time, increases or decreases in the District’s net position – as reported in the Statement of Activities – is one indicator of whether its financial health is improving or deteriorating. The relationship between revenues and expenses indicates the District’s operating results. However, the District’s mission is to provide services to students, not to generate profits as commercial entities strive to do each year. Non-financial factors, such as the quality of the education provided, safety of the schools, facility conditions, the District’s property tax base and current state laws restricting revenue growth must also be considered to assess the overall health of the District. The Statement of Net Position and the Statement of Activities report the following activity for the District’s programs and services: Governmental Activities – Most of the District’s services, which includes instruction, support and plant services, are reported here. Property taxes, voluntary student transfer aid, state foundation and categorical grants, and state and federal grants finance most of these activities. Business-type Activities – The District’s business-type activities include services provided to constituents of the District where all or most of the costs involved are recovered through services charged to the users of such services or from transfers from other funds. - 9 -