SCHOOL DISTRICT OF CLAYTON STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS Year ended June 30, 2020 General Fund Special Revenue Fund Debt Service Fund Capital Projects Fund Total Governmetal Funds Revenues Local $ 21,799,840 $ 37,182,930 $ 8,349,892 $ 2,725,680 $ 70,058,342 County 123,380 281,775 182,266 23,577 610,998 State 308,641 1,407,650 - - 1,716,291 Federal 329,360 122,782 785,436 - 1,237,578 Other 13,854 132,514 - 5,425 151,793 Total revenues 22,575,075 39,127,651 9,317,594 2,754,682 73,775,002 Expenditures Instruction 2,194,594 26,956,239 - 616,870 29,767,703 Attendance and guidance 721,359 1,346,623 - - 2,067,982 Health services 479,307 158,637 - - 637,944 Improvement of instruction and professional development 303,007 970,133 - - 1,273,140 Media services 357,872 588,093 - 1,309 947,274 Board of Education services 215,141 - - 4,528 219,669 Executive administration 1,537,873 1,050,968 - 25,257 2,614,098 Building level administration 1,082,408 1,594,989 - 10,470 2,687,867 Operation of plant 7,296,625 - - 1,018,075 8,314,700 Security services 171,267 - - 80,511 251,778 Nonallowable transportation 190,403 - - - 190,403 Food services 966,005 - - - 966,005 Business services 913,553 - - - 913,553 Central office support services 410,932 - - 1,574 412,506 Adult/community programs 1,127,901 3,600 - 11,299 1,142,800 Facilities acquisition and construction - - - 6,947,251 6,947,251 Debt service Principal retirements - - 4,935,000 320,000 5,255,000 Interest and other charges - - 3,353,792 83,043 3,436,835 Total expenditures 17,968,247 32,669,282 8,288,792 9,120,187 68,046,508 4,606,828 6,458,369 1,028,802 (6,365,505) 5,728,494 Revenues over (under) expenditures Other financing sources (uses) Proceeds from refunded debt - - 31,075,000 - 31,075,000 Premium on refunded bonds - - 1,741,862 - 1,741,862 Payments to refunded bond escrow agent - - (32,475,000) - (32,475,000) Transfers (90,443) 2,530 - (21,412) (109,325) (90,443) 2,530 341,862 (21,412) 232,537 Net Change in Fund Balances 4,516,385 6,460,899 1,370,664 (6,386,917) 5,961,031 Fund balances at July 1, 2019 4,910,517 7,414,629 4,986,479 10,803,558 28,115,183 Fund balances at June 30, 2020 $ 9,426,902 $ 13,875,528 $ 6,357,143 $ 4,416,641 $ 34,076,214 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, 2020 Total net change in fund balance - governmental funds $ 5,961,031 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 4,079,608 Capital outlay (3,924,779) (154,829) 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. 1,150,100 In the Statement of Activities, the loss or gain on the sale of disposal of capital assets is recognized. The fund financial statements recognize only the proceeds from the assets. Loss on disposal of capital assets (2,268) 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). (188,976) The governmental funds report debt (e.g. bond) proceeds as another financial 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 refunded debt (31,075,000) Bond issuance premium (1,741,862) Repayment of bond principal 37,410,000 Amortization of bond premium 565,774 Capital lease principal 320,000 5,478,912 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. 281,909 The internal services 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. 481,701 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. (105,818) The fund financial statements do not recognize the pension liability. The increase is recognized in the Statement of Activities. (4,139,105) Change in net position of governmental activities $ 8,762,657 The accompanying notes are an integral part of this statement. - 26 -