SCHOOL DISTRICT OF CLAYTON STATEMENT OF ACTIVITIES Year ended June 30, 2019 Net (expense) revenue Program revenues and changes in net eosition Charges Operating Business- for grants and Governmental type Function/Program Exeenses services contributions activities activities Total Governmental activities Instruction $ 30,370,087 $ 1,623,545 $ 688,311 $ (28,058,231) $ $ (28,058,231) Attendance and guidance 2,072,533 (2,072,533) (2,072,533) Health services 563,566 (563,566) (563,566) Improvement of instruction and professional development 1,021,785 105,845 (915,940) (915,940) Media services 950,833 (950,833) (950,833) Board of Education services 204,008 (204,008) (204,008) Executive administration 2,840,202 (2,840,202) (2,840,202) Building level administration 2,726,093 (2,726,093) (2,726,093) Operation of plant 10,895,241 860,183 224,740 (9,810,318) (9,810,318) Security services 203,982 (203,982) (203,982) Nonallowable transportation 185,278 5,417 (179,861) (179,861) Food services 1,184,498 831,279 259,103 (94,116) (94,116) Business services 931,787 8,067 (923,720) (923,720) Central office support services 5,335,592 4,706,948 (628,644) (628,644) Adult/community programs 1,201,406 807,567 213,333 (180,506) (180,506) Interest and other charges 3,907,058 (3,907,058) (3,907,058) Total governmental activities 64,593,949 8,834,939 1,499,399 (54,259,611) (54,259,611) Business-type activities Other 883,805 1,099,031 215,226 215,226 Total business-type activities 883,805 1,099,031 215,226 215,226 Total school district $ 65,477,754 $ 9,933,970 $ 1,499,399 (54,259,611) 215,226 (54,044,385) General revenues Taxes Property taxes, levied for general purposes 11,591,162 11,591,162 Property taxes, levied for debt services 6,840,734 6,840,734 Property taxes, levied for capital projects 1,208,036 1,208,036 Property taxes, levied for teachers' salaries and benefits 22,803,908 22,803,908 Other taxes 4,303,196 4,303,196 Voluntary student transfer aid 1,568,157 1,568,157 Federal and State aid not restricted to specific purposes General 2,352,559 2,352,559 Interest and investment earnings 1,629,988 1,629,988 Miscellaneous 187,602 187,602 Total general revenues 52,485,342 52,485,342 Revenues over (under) expenses before transfers (1,774,269) 215,226 (1,559,043) Transfers 223;267 (223,267) Change in net position (1,551,002) (8,041) (1,559,043) Net position at July I, 2018 16,815,782 52,166 16,867,948 Net position at June 30, 2019 $ 15,264,780 $ 44,125 $ 15,308,905 The accompanying notes are an integral part of this statement. -22 - SCHOOL DISTRICT OF CLAYTON BALANCE SHEET-GOVERNMENTAL FUNDS June 30, 2019 Special Debt Capital Total General Revenue Service Projects Governmental Fund Fund Fund Fund Funds ASSETS Cash and investments $ 5,147,502 $ 7,348,899 $ 4,979,156 $ 5,457,466 $ 22,933,023 Restricted cash and investments 5,001,861 5,001,861 Receivables Property truces, net of allowance for uncollectibles of $884,607 16,455,426 32,349,933 8,051,959 1,292,451 58,149,769 Sales truces 237,145 142,287 379,432 Grants 18,282 115,086 133,368 Other 236,594 4,528 626,748 867,870 Inventories 62,509 62,509 Prepaid expenditures 310,060 310,060 Total assets $ 22,467,518 $ 39,960,733 $ 13,031,115 $ 12,378,526 $ 87,837,892 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES LIABILITIES Accounts payable $ 653,159 $ $ $ 254,575 $ 907,734 Due to other funds 261,186 261,186 Accrued payroll and payroll truces 31,230 109,063 140,293 Unearned revenue 137,657 6,500 29,235 173,392 Total liabilities 1,083,232 115,563 283,810 1,482,605 DEFERRED INFLOWS OF RESOURCES Deferred property truces 16,443,020 32,325,519 8,044,636 1,291,158 58,104,333 Deferred grants 26,471 105,022 131,493 Deferred other 4,278 4,278 Total deferred inflows of resources 16,473,769 32,430,541 8,044,636 1,291,158 58,240,104 FUND BALANCES Nonspendable Inventories 62,509 62,509 Prepaid expenditures 310,060 310,060 Restricted Grants 18,282 115,086 133,368 Teachers salaries and benefits 7,299,543 7,299,543 Debt service 4,986,479 4,986,479 Committed Capital reserve 4,693,732 4,693,732 Assigned Other capital projects 6,109,826 6,109,826 Student activities 587,987 587,987 Unassigned 3,931,679 3,931,679 Total fund balances 4,910,517 7,414,629 4,986,479 10,803,558 28,115,183 Total liabilities, deferred inflows of resources and fund balances $ 22,467,518 $ 39,960,733 $ 13,031,115 $ 12,378,526 $ 87,837,892 The accompanying notes are an integral part of this statement. -23 -

SCHOOL DISTRICT OF CLAYTON BALANCE SHEET-GOVERNMENTAL FUNDS June 30, 2019 Special Debt Capital Total General Revenue Service Projects Governmental Fund Fund Fund Fund Funds ASSETS Cash and investments $ 5,147,502 $ 7,348,899 $ 4,979,156 $ 5,457,466 $ 22,933,023 Restricted cash and investments 5,001,861 5,001,861 Receivables Property truces, net of allowance for uncollectibles of $884,607 16,455,426 32,349,933 8,051,959 1,292,451 58,149,769 Sales truces 237,145 142,287 379,432 Grants 18,282 115,086 133,368 Other 236,594 4,528 626,748 867,870 Inventories 62,509 62,509 Prepaid expenditures 310,060 310,060 Total assets $ 22,467,518 $ 39,960,733 $ 13,031,115 $ 12,378,526 $ 87,837,892 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES LIABILITIES Accounts payable $ 653,159 $ $ $ 254,575 $ 907,734 Due to other funds 261,186 261,186 Accrued payroll and payroll truces 31,230 109,063 140,293 Unearned revenue 137,657 6,500 29,235 173,392 Total liabilities 1,083,232 115,563 283,810 1,482,605 DEFERRED INFLOWS OF RESOURCES Deferred property truces 16,443,020 32,325,519 8,044,636 1,291,158 58,104,333 Deferred grants 26,471 105,022 131,493 Deferred other 4,278 4,278 Total deferred inflows of resources 16,473,769 32,430,541 8,044,636 1,291,158 58,240,104 FUND BALANCES Nonspendable Inventories 62,509 62,509 Prepaid expenditures 310,060 310,060 Restricted Grants 18,282 115,086 133,368 Teachers salaries and benefits 7,299,543 7,299,543 Debt service 4,986,479 4,986,479 Committed Capital reserve 4,693,732 4,693,732 Assigned Other capital projects 6,109,826 6,109,826 Student activities 587,987 587,987 Unassigned 3,931,679 3,931,679 Total fund balances 4,910,517 7,414,629 4,986,479 10,803,558 28,115,183 Total liabilities, deferred inflows of resources and fund balances $ 22,467,518 $ 39,960,733 $ 13,031,115 $ 12,378,526 $ 87,837,892 The accompanying notes are an integral part of this statement. -23 - SCHOOL DISTRICT OF CLAYTON RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET WITH THE DISTRICT-WIDE STATEMENT OF NET POSITION June 30, 2019 Amounts reported for governmental activities in the Statement of Net Position are different because: Total fund balance - governmental funds Capital assets used in governmental activities are not financial resources and therefore are not reported as assets in the governmental funds. The cost of capital assets is Accumulated depreciation is Certain property taxes, grants and other receivables will be collected this year, but are not available soon enough to pay for the current period's expenditures, and therefore are deferred in the funds. An internal service fund is used by management to charge the costs of insurance to individual funds. The assets and liabilities of the internal service fund are included in governmental activities in the statements of net position. Deferred outflows of resources are not due and payable in the current period and therefore are not reported in the funds Deferred pension contributions OPEB deferrals Deferred inflows of resources related to pension deferrals are not reported in governmental funds Deferred inflows of resources related to OPEB deferrals are not reported in governmental funds Long-term liabilities, including bonds payable, are not due and not payable in the current period and therefore are not reported as liabilities in the funds. Long-term liabilities at year end consist of: Bonds payable Capital leases Accrued interest on the bonds Compensated absences Net pension liability Postemployment benefits other than pensions liability Net position of governmental activities 149,318,862 (46,730,782) 15,286,338 183,918 71,942,824 5,065,000 978,592 372,056 44,867,812 5,765,488 The accompanying notes are an integral part of this statement. - 24 - $ 28,115,183 102,588,080 120,023 359,327 15,470,256 (2,277,940) (118,377) (128,991,772) $ 15,264,780

Deferred outflows of resources are not due and payable in the current period and therefore are not reported in the funds Deferred pension contributions OPEB deferrals Deferred inflows of resources related to pension deferrals are not reported in governmental funds Deferred inflows of resources related to OPEB deferrals are not reported in governmental funds Long-term liabilities, including bonds payable, are not due and not payable in the current period and therefore are not reported as liabilities in the funds. Long-term liabilities at year end consist of: Bonds payable Capital leases Accrued interest on the bonds Compensated absences Net pension liability Postemployment benefits other than pensions liability Net position of governmental activities 149,318,862 (46,730,782) 15,286,338 183,918 71,942,824 5,065,000 978,592 372,056 44,867,812 5,765,488 The accompanying notes are an integral part of this statement. - 24 - $ 28,115,183 102,588,080 120,023 359,327 15,470,256 (2,277,940) (118,377) (128,991,772) $ 15,264,780 SCHOOL DISTRICT OF CLAYTON STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS Year ended June 30, 2019 Special Debt Capital Total General Revenue Service Projects Governmental Fund Fund Fund Fund Funds Revenues Local $ 17,294,981 $ 26,911,952 $ 7,312,664 $ 1,650,399 $ 53,169,996 County 112,759 242,944 151,287 18,835 525,825 State 244,496 1,498,308 1,742,804 Federal 316,041 183,242 1,136,299 1,635,582 Other 5,417 351,630 93,598 450,645 Total revenues 17,973,694 29,188,076 8,600,250 1,762,832 57,524,852 Expenditures Instruction 2,759,538 26,868,880 665,281 30,293,699 Attendance and guidance 712,672 1,310,617 2,023,289 Health services 437,221 126,345 563,566 Improvement of instruction and professional development 420,831 600,954 1,021,785 Media services 344,194 606,639 2,618 953,451 Board of Education services 203,563 203,563 Executive administration 1,408,521 1,123,656 283,320 2,815,497 Building level administration 1,086,820 1,536,469 2,623,289 Operation of plant 7,152,373 401,749 7,554,122 Security services 203,979 48,676 252,655 Nonallowable transportation 185,253 185,253 Food services 1,184,498 11,990 1,196,488 Business services 939,330 939,330 Central office support services 448,930 1,098 450,028 Adult/community programs 1,199,620 3,511 1,203,131 Debt service: Principal retirements 23,750,000 7,122 23,757,122 Interest and other charges 4,331 ,872 63,149 4,395,021 Total expenditures 18,687,343 32,177,071 28,081,872 1,485,003 80,431,289 Revenues over (under) expenditures (713,649) (2,988,995) (19,481,622) 277,829 (22,906,437) Other financing sources (uses) Proceeds from capital lease 5,065,000 5,065,000 Transfers 258,936 {33,1562 {2,5132 223,267 258,936 {33,1562 5,062,487 5,288,267 NET CHANGE IN FUND BALANCES (454,713) (3,022,151) (19,481,622) 5,340,316 (17,618,170) Fund balances at July 1, 2018 5,365,230 10,436,780 24,468,101 5,463,242 45,733,353 Fund balances at June 30, 2019 $ 4,910,517 $ 7,414,629 $ 4,986,479 $ 10,803,558 $ 28,115,183 The accompanying notes are an integral part of this statement. -25 -

SCHOOL DISTRICT OF CLAYTON STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS Year ended June 30, 2019 Special Debt Capital Total General Revenue Service Projects Governmental Fund Fund Fund Fund Funds Revenues Local $ 17,294,981 $ 26,911,952 $ 7,312,664 $ 1,650,399 $ 53,169,996 County 112,759 242,944 151,287 18,835 525,825 State 244,496 1,498,308 1,742,804 Federal 316,041 183,242 1,136,299 1,635,582 Other 5,417 351,630 93,598 450,645 Total revenues 17,973,694 29,188,076 8,600,250 1,762,832 57,524,852 Expenditures Instruction 2,759,538 26,868,880 665,281 30,293,699 Attendance and guidance 712,672 1,310,617 2,023,289 Health services 437,221 126,345 563,566 Improvement of instruction and professional development 420,831 600,954 1,021,785 Media services 344,194 606,639 2,618 953,451 Board of Education services 203,563 203,563 Executive administration 1,408,521 1,123,656 283,320 2,815,497 Building level administration 1,086,820 1,536,469 2,623,289 Operation of plant 7,152,373 401,749 7,554,122 Security services 203,979 48,676 252,655 Nonallowable transportation 185,253 185,253 Food services 1,184,498 11,990 1,196,488 Business services 939,330 939,330 Central office support services 448,930 1,098 450,028 Adult/community programs 1,199,620 3,511 1,203,131 Debt service: Principal retirements 23,750,000 7,122 23,757,122 Interest and other charges 4,331 ,872 63,149 4,395,021 Total expenditures 18,687,343 32,177,071 28,081,872 1,485,003 80,431,289 Revenues over (under) expenditures (713,649) (2,988,995) (19,481,622) 277,829 (22,906,437) Other financing sources (uses) Proceeds from capital lease 5,065,000 5,065,000 Transfers 258,936 {33,1562 {2,5132 223,267 258,936 {33,1562 5,062,487 5,288,267 NET CHANGE IN FUND BALANCES (454,713) (3,022,151) (19,481,622) 5,340,316 (17,618,170) Fund balances at July 1, 2018 5,365,230 10,436,780 24,468,101 5,463,242 45,733,353 Fund balances at June 30, 2019 $ 4,910,517 $ 7,414,629 $ 4,986,479 $ 10,803,558 $ 28,115,183 The accompanying notes are an integral part of this statement. -25 - SCHOOL DISTRICT OF CLAYTON RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES WITH THE DISTRICT-WIDE STATEMENT OF ACTIVITIES Year ended June 30, 2019 Total net change in fund balances - governmental funds Capital outlay to purchase or build capital assets are reported in governmental funds as expenditures. However, for governmental activities those costs are shown in the Statement of Net Position and allocated over their estimated useful lives as annual depreciation expenses in the Statement of Activities. This is the amount by which capital outlay exceeds depreciation expense for the period. Depreciation expense Capital outlay Because some property taxes, grants and other inflows of resources will not be collected for several months after the District's fiscal year end, they are not considered as "available" revenues in the governmental funds, and are instead reported as deferred inflows of resources. They are, however, reported as revenues in the Statement of Activities. In the Statement of Activities, the loss or gain on the sale or disposal of capital assets is recognized. The fund financial statements recognize only the proceeds from the assets. Loss on disposal of capital assets In the Statement of Activities, certain operating expenses such as compensated absences (vacations) are measured by the amounts earned during the year. In the governmental funds, however, expenditures for these items are measured by the amount of financial resources used ( essentially, the amounts actually paid). The governmental funds report debt ( e.g. bond) proceeds as an other financing source, while repayment of debt principal is reported as an expenditure. Also governmental funds report the effect of premiums when debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities. The net effect of these differences in the treatment of debt and related items are as follows: Proceeds of capital lease Repayment of bond principal Amortization of bond premium Capital lease principal Interest on long-term debt in the Statement of Activities differs from the amount reported in the governmental funds because interest is recorded as an expenditure in the funds when it is due, and thus requires the use of current financial resources. In the Statement of Activities, however, interest expense is recognized as the interest accrues, regardless of when it is due. The internal service fund used by management to charge the costs of the insurance to individual funds is not reported in the Statement of Activities. Governmental fund expenditures and the related internal service fund revenues are eliminated. The net revenue (expense) of the internal service fund is included in the governmental activities. The fund financial statements do not recognize the liability related to postemployment benefits other than pensions. The increase in this liability is recognized in the Statement of Activities. The fund financial statements do not recognize the pension liability. The increase is recognized in the Statement of Activities. Change in net position of governmental activities The accompanying notes are an integral part of this statement. - 26 - 3,683,076 (1,362,487) (5,065,000) 23,750,000 761,290 7,122 $ $ (17,618,170) (2,320,589) (112,551) (60,861) (34,879) 19,453,412 487,963 (176,353) (127,239) (1,041,735) (1,551,002)

The increase is recognized in the Statement of Activities. Change in net position of governmental activities The accompanying notes are an integral part of this statement. - 26 - 3,683,076 (1,362,487) (5,065,000) 23,750,000 761,290 7,122 $ $ (17,618,170) (2,320,589) (112,551) (60,861) (34,879) 19,453,412 487,963 (176,353) (127,239) (1,041,735) (1,551,002) SCHOOL DISTRICT OF CLAYTON STATEMENT OF NET POSITION - PROPRIETARY FUNDS June 30, 2019 Business- type Governmental activities - activities - Enterprise Internal fund service fund Total ASSETS Current assets Cash $ $ 704,045 $ 704,045 Other receivables 30,302 30,302 Noncurrent assets Due from other funds 232,171 232,171 Furniture and equipment, net 44,125 44,125 Total assets 306,598 704,045 1,010,643 LIABILITIES Current liabilities Accounts payable 39,508 344,718 384,226 Accrued payroll and payroll taxes 97,571 97,571 Unearned revenue 125,394 125,394 Total current liabilities 262,473 344,718 607,191 NET POSITION Net investment in capital assets 44,125 44,125 Unrestricted 359,327 359,327 Total net position $ 44,125 $ 359,327 $ 403,452 The accompanying notes are an integral part of this statement. - 27 -