FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORT SCHOOL DISTRICT OF CLAYTON June 30, 2020 SCHOOL DISTRICT OF CLAYTON TABLE OF CONTENTS Page Independent Auditors' Report 4 Management's Discussion and Analysis - Unaudited 7 Basic Financial Statements District-wide Financial Statements Statement of Net Position 21 Statement of Activities 22 Fund Financial Statements Balance Sheet - Governmental Funds 23 Reconciliation of the Governmental Funds Balance Sheet with the District-wide Statement of Net Position 24 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 25 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances with the District-Wide Statement of Activities 26 Statement of Net Position - Proprietary Funds 27 Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds 28 Statement of Cash Flows - Proprietary Funds 29 Notes to the Financial Statements 30 Required Supplementary Information - Unaudited Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Cash Basis General Fund 65 Special Revenue Fund 66 Notes to Required Supplementary Information 67 SCHOOL DISTRICT OF CLAYTON TABLE OF CONTENTS Page Net Pension Liability 69 Schedule of Changes in Total OPEB Liability and Related Ratios - Unaudited 71 Supplementary Information Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Cash Basis Debt Service Fund 73 Capital Projects Fund 74 Annual Financial Information and Operating Data - Unaudited 76

SCHOOL DISTRICT OF CLAYTON TABLE OF CONTENTS Page Net Pension Liability 69 Schedule of Changes in Total OPEB Liability and Related Ratios - Unaudited 71 Supplementary Information Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Cash Basis Debt Service Fund 73 Capital Projects Fund 74 Annual Financial Information and Operating Data - Unaudited 76 CPAs and Management Consultants One South Memorial Drive, Ste. 900 St. Louis, MO 63102 ph 314.231.6232 fax 314.880.9307 www.kebcpa.com Independent Auditors’ Report Board of Education School District of Clayton We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the School District of Clayton, as of and for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes 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. Auditors’ Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the District’s preparation and fair presentation of the financial statements 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, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the School District of Clayton, as of June 30, 2020, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and required supplementary information as listed in the table of contents be presented to supplement the basic financial statements. Such information, 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. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the School District of Clayton’s basic financial statements. The annual financial information and operating data and supplemental budgetary schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. The supplemental budgetary schedules are the responsibility of management and were derived from and relate 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 supplemental budgetary schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The annual financial information and operating data has not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly we do not express an opinion or provide any assurance on them.

In our opinion, the supplemental budgetary schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The annual financial information and operating data has not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 9. 2020, on our consideration of the School District of Clayton’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 controls over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District of Clayton’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 School District of Clayton’s internal control over financial reporting and compliance. St. Louis, Missouri December 9, 2020

St. Louis, Missouri December 9, 2020 SCHOOL DISTRICT OF CLAYTON MANAGEMENT'S DISCUSSION AND ANALYSIS - UNAUDITED Year ended June 30, 2020 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, 2020. 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, 2020 are as follows:  The total assets and deferred outflows of the District exceeded its liabilities and deferred inflows at the end of the 2020 fiscal year by $24.1 million (net position).  Net position increased approximately $8.8 million or 57.5% from the prior year.  General revenues totaled $70.2 million or 86.8% of all revenues. Program revenues in the form of charges for services and operating grants and contributions accounted for $10.7 million or 13.2% of all revenues.  Total expenses for the year were $72.0 million of which $61.3 million were funded by general revenues.  The General Fund had $22.6 million in revenues and $18.0 million in expenditures. The General Fund’s balance increased $4.6 million before transfers.  The Special Revenue Fund had $39.1 million in revenues and $32.7 million in expenditures. The Special Revenue Fund’s balance increased $6.5 million before transfers.  The Debt Service Fund had $9.3 million in revenues and $8.3 million in expenditures. The District refunded bonds during the year which resulted in $31.1 million in proceeds and $32.5 million in payments. The Debt Service Fund’s balance increased $1.4 million.  The Capital Projects Fund had $2.8 million in revenues and $9.1 million in expenditures. The Capital Projects Fund’s balance decreased $6.4 million before transfers primarily due to spending the proceeds of the prior year's capital lease. - 7 -