finance 2019 2020 Audited Financial Report
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
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.
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.
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
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.
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SCHOOL DISTRICT OF CLAYTON
MANAGEMENT'S DISCUSSION AND ANALYSIS - UNAUDITED
Year ended June 30, 2020
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 21 and 22) 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 checks are
issued. 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. 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.
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SCHOOL DISTRICT OF CLAYTON
MANAGEMENT'S DISCUSSION AND ANALYSIS - UNAUDITED
Year ended June 30, 2020
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 21. 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.
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SCHOOL DISTRICT OF CLAYTON
MANAGEMENT'S DISCUSSION AND ANALYSIS - UNAUDITED
Year ended June 30, 2020
Reporting the District’s Most Significant Funds
Fund Financial Statements
The analysis of the District’s major funds begins on page 23. Fund financial statements provide detailed
information about the District’s major funds, not the District as a whole. The District utilizes several
funds to account for a wide range of financial transactions. However, the fund financial statements focus
on the District’s most significant funds, which are the General Fund, Special Revenue Fund, Debt Service
Fund, and Capital Projects Fund. The District’s funds use the following accounting approach:
Governmental Funds - Most of the District’s services are reported in governmental funds which focus on
how money flows into and out of the funds, and the balances remaining at year-end which are available
for spending for future years. These funds are reported using the modified accrual basis of accounting,
which measures cash and all other financial assets that can be readily converted to cash. The governmental
fund statements provide a detailed short-term view of the District’s operations and the services it provides.
Governmental fund information helps determine whether there are more or fewer financial resources
available in the near future to finance the District’s programs. Because this information does not
encompass the additional long-term focus of the government-wide statements, the relationship (or
differences) between governmental activities (reported in the Statement of Net Position and the Statement
of Activities) and governmental funds is reconciled on pages 24 and 26.
Proprietary Funds – Proprietary funds account for activities that involve business-like interactions using
the accrual basis of accounting. The District has two types of proprietary funds which are the enterprise
fund and the internal service fund. The enterprise fund is used to account for any activity for which
external users are charged a fee for goods and services. The internal service fund is used to account for
activities that benefit government activities. No reconciling items exist between the governmental-wide
statements and the proprietary funds statements.
The District as a Whole
The District’s net position was $24.1 million at June 30, 2020. Of this amount, $31.8 million was net
investment in capital assets and $20.5 million was restricted. Restricted net position is reported separately
to show legal constraints from debt covenants and enabling legislation that limit the District’s ability to
use those assets for day-to-day operations. The unrestricted net position shows a negative balance of $28.1
million after the District recognized the proportionate share of the total net pension liability of the
Missouri retirement program for public school districts (PSRS/PEERS) in accordance with GASB
Statement No. 68, as amended by GASB Statement No. 71, and the postemployment benefits other than
pensions liability in accordance with GASB Statement No. 75. Note G contains additional information on
GASB Statement No. 68 and Note I contains additional information on GASB Statement No. 75. The
analysis below focuses on the net position (Table 1) and changes in net position (Table 2) of the District’s
activities.
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SCHOOL DISTRICT OF CLAYTON
MANAGEMENT'S DISCUSSION AND ANALYSIS - UNAUDITED
Year ended June 30, 2020
The District as a Whole - Continued
Table 1
Condensed Statements of Net Position
June 30,
2020
2019
Governmental
activities
Business-
type
activities
Total
Governmental
activities
Business-
type
activities
Total
Current and other assets
$
95,626,121 $
19,296 $
95,645,417 $
88,541,937 $
30,302 $
88,572,239
Capital assets
102,430,983
87,767
102,518,750
102,588,080
44,125
102,632,205
Total assets
198,057,104
107,063
198,164,167
191,130,017
74,427
191,204,444
Deferred pension and OPEB
12,466,140
-
12,466,140
15,470,256
-
15,470,256
Current and other liabilities
10,154,645
19,296
10,173,941
8,031,900
30,302
8,062,202
Noncurrent liabilities
114,414,415
-
114,414,415
122,758,180
-
122,758,180
Total liabilities
124,569,060
19,296
124,588,356
130,790,080
30,302
130,820,382
Deferred property taxes
57,375,794
-
57,375,794
58,149,096
-
58,149,096
Pension and OPEB deferrals
4,550,953
-
4,550,953
2,396,317
-
2,396,317
Total deferred inflows
61,926,747
-
61,926,747
60,545,413
-
60,545,413
Net position
Net investment in capital assets
31,674,483
87,767
31,762,250
30,674,271
44,125
30,718,396
Restricted
20,490,736
-
20,490,736
15,344,822
-
15,344,822
Unrestricted
(28,137,782)
-
(28,137,782)
(30,754,313)
-
(30,754,313)
Total net position
$
24,027,437 $
87,767 $
24,115,204 $
15,264,780 $
44,125 $
15,308,905
The negative $28.1 million in unrestricted net position represents the accumulated results of all
past years’ operations for unrestricted activities. Total net position increased $8.8 million.
The results of this year’s operations for the District as a whole are reported in the Statement of Activities
on page 22. This information is summarized in Table 2 on the following page.
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SCHOOL DISTRICT OF CLAYTON
MANAGEMENT'S DISCUSSION AND ANALYSIS - UNAUDITED
Year ended June 30, 2020
The District as a Whole - Continued
Table 2
Changes in Net Position from Operating Results
Year Ended June 30,
2020
2019
Governmental
activities
Business-
type
activities
Total
Governmental
activities
Business-
type
activities
Total
Revenues
Program revenues
Charges for services
$
7,898,300 $
522,090 $
8,420,390 $
8,834,939 $
1,099,031 $
9,933,970
Operating grants and contributions
2,254,982
-
2,254,982
1,499,399
-
1,499,399
General revenues
Property taxes
59,764,410
-
59,764,410
42,443,840
-
42,443,840
Federal and State aid not restricted to specific purposes
1,987,417
-
1,987,417
2,352,559
-
2,352,559
Voluntary student transfer aid
1,367,251
-
1,367,251
1,568,157
-
1,568,157
Other
7,048,608
-
7,048,608
6,120,786
-
6,120,786
Total revenues
80,320,968
522,090
80,843,058
62,819,680
1,099,031
63,918,711
Expenses
Instruction
32,333,373
-
32,333,373
30,370,087
-
30,370,087
Student services
2,918,501
-
2,918,501
2,636,099
-
2,636,099
Support services
2,219,105
-
2,219,105
1,972,618
-
1,972,618
Building administration
3,049,902
-
3,049,902
2,726,093
-
2,726,093
Executive administration
3,281,145
-
3,281,145
3,044,210
-
3,044,210
Business services
928,638
-
928,638
931,787
-
931,787
Central office support services
4,772,627
-
4,772,627
5,335,592
-
5,335,592
Operation of plant
11,754,267
-
11,754,267
10,895,241
-
10,895,241
Security services
171,267
-
171,267
203,982
-
203,982
Nonallowable transportation
192,241
-
192,241
185,278
-
185,278
Food services
966,005
-
966,005
1,184,498
-
1,184,498
Adult/community programs
1,134,749
-
1,134,749
1,201,406
-
1,201,406
Facilities acquisition and construction
4,572,239
-
4,572,239
-
-
-
Interest and other charges
3,154,927
-
3,154,927
3,907,058
-
3,907,058
Local district services
-
587,773
587,773
-
883,805
883,805
Total expenses
71,448,986
587,773
72,036,759
64,593,949
883,805
65,477,754
Excess (deficiency) before other income and
transfers
8,871,982
(65,683)
8,806,299
(1,774,269)
215,226
(1,559,043)
Other income
Transfers
(109,325)
109,325
-
223,267
(223,267)
-
Total other income
(109,325)
109,325
-
223,267
(223,267)
-
Change in net position
8,762,657
43,642
8,806,299
(1,551,002)
(8,041)
(1,559,043)
Beginning net position
15,264,780
44,125
15,308,905
16,815,782
52,166
16,867,948
Ending net position
$ 24,027,437 $
87,767 $ 24,115,204 $ 15,264,780 $
44,125 $ 15,308,905
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SCHOOL DISTRICT OF CLAYTON
MANAGEMENT'S DISCUSSION AND ANALYSIS - UNAUDITED
Year ended June 30, 2020
Governmental and Business-Type Activities
As reported in the Statement of Activities, the cost of all governmental and business-type activities totaled
$72.0 million in fiscal year 2020. However, the District’s local taxpayers ultimately funded $59.8 million
or 83.1% of these costs because some of the costs were paid by those who benefited from the programs
($8.4 million), by other governments and organizations who subsidized certain programs ($3.6 million),
and by miscellaneous sources ($9.0 million).
Table 3 shows the cost of each of the District’s largest functions, as well as each function’s net cost (total
cost less revenue generated by the activities). The net cost shows the financial burden that was placed on
the District’s taxpayers by each of the functions. Providing this information allows citizens to consider the
cost of each function in comparison to the benefits they believe are provided by that function.
Table 3
Net Cost of Governmental Activities
Year ended June 30,
2020
2019
Total cost
of services
Net cost
of services
Total cost
of services
Net cost
of services
Governmental activities
Instruction
$ 32,333,373
$
30,672,612
$ 30,370,087
$ 28,058,231
Student services
2,918,501
2,918,501
2,636,099
2,636,099
Support services
2,219,105
2,135,607
1,972,618
1,866,773
Administration
7,259,685
7,247,733
6,702,090
6,694,023
Operation of plant
11,925,534
9,970,013
11,099,223
10,014,300
Facilities acquisition and construction
4,572,239
4,572,239
-
-
Other
7,065,622
624,072
7,906,774
1,083,127
Interest and other charges
3,154,927
3,154,927
3,907,058
3,907,058
71,448,986
61,295,704
64,593,949
54,259,611
Business-type activities
Local district services
587,773
65,683
883,805
(215,226)
Total
$ 72,036,759
$
61,361,387
$ 65,477,754
$ 54,044,385
Instruction expenses include activities directly involved in the teaching of pupils, and the interaction
between teacher and pupil.
Student services are those services which provide administrative, technical (such as guidance and health),
and logistical support to facilitate and enhance instruction, and to a lesser degree, community services.
Support services include the activities involved with assisting staff with the content and process of
teaching to pupils as well as library services.
Administration includes expenses associated with administrative and financial supervision of the District.
Operation of plant activities involves maintaining school grounds, buildings, and equipment in an
effective working condition.
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SCHOOL DISTRICT OF CLAYTON
MANAGEMENT'S DISCUSSION AND ANALYSIS - UNAUDITED
Year ended June 30, 2020
Governmental and Business-Type Activities - Continued
Other includes services for transportation, food, communications, human resources, and expenses for the
District self funding its health insurance plan.
Interest and other charges are transactions associated with the payment on debt of the District.
Business-type activities are 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.
The dependence upon tax revenues is apparent. Over 94.9% of instruction activities are supported through
taxes and other general revenues; for all governmental activities, general revenue support is 85.8%.
The District’s Funds
The District uses funds to control and manage money for particular purposes. A review of the funds
provides some insight as to whether the District is being accountable for the resources taxpayers and
others provide to it, and also provides insight into the District’s overall financial health. In total,
governmental funds had a fund balance of $34.1 million at June 30, 2020. This represents an overall
increase of $6.0 million from the prior year. The increase was primarily a result of the planned increase in
fund balances for the General, Special and Capital funds due to the passing of a tax levy designed to
provide resources to the District for future years. Additionally, the General Fund had reduced expenditures
as less funds were spent on travel, supplies and overtime as a result of COVID-19 (see Note J).
Expenditures for the Special Revenue Fund were slightly less than budgeted as fewer extra pay stipends
were awarded due to COVID-19. The Capital Projects Fund had a planned increase in expenditures as
proceeds from the prior year's capital lease were expended in the current year. The Debt Service shows
proceeds and payments for a bond refunding that occurred in this fiscal year. The overall position of
the District’s funds remains financially strong and the District is able to meet all of its ongoing
operational expenditures without having to resort to short-term financing activities.
Operating Funds (General and Special Revenue Funds Combined) - Budgeting Highlights
In accordance with Chapter 67, RSMo, the District adopts a budget for each fund. While the District uses
its funding judiciously, there are a number of factors that affect the budget over which the District has
little or no control. The District uses site-based budgeting which is designed to tightly control site budgets
but provide flexibility for site management. During the year the District revises the budget to deal with
unexpected changes in revenues and expenditures as additional information becomes available. Schedules
showing the District’s original and final budget amounts compared with actual amounts paid and received
for the General and Special Revenue Funds are provided later in this report as required supplementary
information.
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SCHOOL DISTRICT OF CLAYTON
MANAGEMENT'S DISCUSSION AND ANALYSIS - UNAUDITED
Year ended June 30, 2020
Operating Funds (General and Special Revenue Funds Combined) - Budgeting Highlights -
Continued
The District’s financial strength is derived primarily from its strong local property values as over 76.7% of
the District’s operating revenues are generated through local property taxes. Under Missouri Statutes,
property tax rates fluctuate with changes in assessed values preventing windfall revenue increases during
periods of growing property values. This mechanism also protects taxing entities during periods of falling
property values and has minimized the impacts of recent property value declines. The 2019-2020 property
tax revenues for all funds increased by approximately $16 million or 37.7% more than the 2018-2019
totals primarily from the successful passing of a tax levy in April of 2019 and a $1.2 million increase in
delinquent property taxes. The District revised the original current property tax budget after assessed
valuation information was obtained from St. Louis County. Property tax revenues finished the year
approximately $3.7 million above the original budget and approximately $1.8 million above the revised
budget for all funds.
For the year ended June 30, 2020, the General Fund budgetary basis actual expenditures were
approximately $2.2 million less than final budgeted amounts. COVID-19 caused expenditures to be less
for student activities by approximately $260 thousand, for food services by approximately $320 thousand,
for utilities by approximately $253 thousand, for training and professional travel by approximately $313
thousand and for supplies by approximately $373 thousand.
The Special Revenue Fund budgetary basis actual expenditures reflect an overall positive variance of
approximately $1.1 million from the final budget primarily in the function of Instruction. Expenditures
were lower than budget in salaries and benefits primarily due to COVID-19 reducing the amount of extra
pay stipends for student activities, summer programs, and athletics as well as reducing the cost of
substitute teacher expenditures. For the year ended June 30, 2020, the combined General and Special
Revenue change in fund balances was approximately $4.6 million greater than the 2019-2020 final budget.
Missouri law prohibits a district from overspending the expenditure budget per fund.
- 15 -
SCHOOL DISTRICT OF CLAYTON
MANAGEMENT'S DISCUSSION AND ANALYSIS - UNAUDITED
Year ended June 30, 2020
Capital Assets and Debt Administration
Capital Assets
At June 30, 2020, the District had capital assets with a net book value of $102.5 million, which includes
$50.9 million in accumulated depreciation. Table 4 shows a breakdown of capital assets, net of
accumulated depreciation, at year end.
Table 4
Capital Assets - Net
June 30,
2020
2019
Governmental
activities
Business-
type
activities
Total
Governmental
activities
Business-
type
activities
Total
Land
$
714,536 $
- $
714,536 $
714,536 $
- $
714,536
Construction in progress
2,362,709
-
2,362,709
-
-
-
Buildings and improvements
96,015,678
-
96,015,678
98,535,256
-
98,535,256
Furniture and equipment
3,338,060
87,767
3,425,827
3,338,288
44,125
3,382,413
Total
$ 102,430,983 $
87,767 $ 102,518,750 $ 102,588,080 $
44,125 $ 102,632,205
The total additions for the year were $4.0 million which consisted of approximately $2.4 million
construction in progress, $675,000 of building and improvements and $939,000 in furniture and
equipment purchases.
In June 2019, the District entered into an approximately $5.1 million capital lease for the purpose of
renovation and improvements to Meramec Elementary and to fund capital contributions to the joint
venture Clayton Recreation, Sports and Wellness Commission which is undergoing a $10 million
renovation project. The majority of the lease proceeds were spent in the current year.
Debt Administration
At June 30, 2020, the District had $62.7 million in general obligation bonds outstanding. Missouri statute
allows school districts to incur debt up to an amount equal to 15% of the most current assessed valuation.
The District’s allowable debt level was approximately $140.1 million at June 30, 2020, far above the
District’s current level of debt. The District’s Debt Service levy for 2019-2020 was $0.623 on each $100
of assessed valuation. The Debt Service Fund balance at June 30, 2020 was $6.4 million and equal to
nearly 83.5% of the fiscal year 2021 annual debt service expense. The District’s bond rating is AAA with
Standard and Poor’s.
Other long-term liabilities of the District include compensated absences and capital leases for renovation
and improvement projects.
Additional information about debt is provided in Note E.
- 16 -
SCHOOL DISTRICT OF CLAYTON
MANAGEMENT'S DISCUSSION AND ANALYSIS - UNAUDITED
Year ended June 30, 2020
Economic Factors and Fiscal Year 2020-2021 Budget
As a community, the students, staff, parents and patrons of the School District of Clayton are united in our
commitment to student learning. Our mission, vision and core values embody why we are here, what we
want our students to become, and the principles that guide our work. The District’s mission to inspire each
student to love learning and embrace challenge within a rich and rigorous academic culture, and the vision
to develop leaders who shape the world through independence, creativity and critical thinking set the
standard for the education we provide.
During the 2018-2019 school year, the District began developing a new strategic plan with the end in
mind: our students. We developed a Profile of a Clayton Graduate that includes competencies we want for
every Clayton graduate.
During the 2019-2020 school year, we engaged the community to establish the direction of the District’s
new strategic plan, using the Profile as the foundation of our work. We envision a plan that will influence
our approach to learning and challenge the mental models of what our schools look like for our students.
We have established goal statements to guide our work:
We will ensure each learner feels safe and valued.
We will commit to the educational growth of our learners through an equitable, personalized and
individualized learning experience.
We will be dedicated to the personal growth of our learners in their social, emotional and physical
well-being.
While our District’s new strategic plan will serve as a guide for where we are going over the next three to
five years, we will also be purposeful about being reflective and make adjustments along the way. We are
taking an evergreen approach to our strategic plan. This means we will evaluate it more often and make
changes as needed based on evidence we gather. We will have action steps that are aspirational,
attainable, and aligned to our resources.
On April 2, 2019, the Board of Education (Board) asked the community to vote on Proposition E, an
operating levy increase of 56 cents per $100 of assessed valuation and an eight-cent waiver of Proposition
C sales tax revenues. The voters approved the ballot measure with 64.2% of the votes. The net effect of
both measures provided the District with an additional 64 cents of operating revenue, or approximately
$7.3 million. The additional revenue will maintain and strengthen the District’s academic excellence and
fiscal stability by eliminating the gap between revenues and expenses, addressing facility and maintenance
needs and rebuilding reserves. The community's support of Proposition E will have a lasting impact on our
schools and our students.
- 17 -
SCHOOL DISTRICT OF CLAYTON
MANAGEMENT'S DISCUSSION AND ANALYSIS - UNAUDITED
Year ended June 30, 2020
Proposition E was placed on the ballot because the District was prudently spending down operating
reserves over several years. During this time, the District made reductions in expenditures with the goal of
continuing to align District resources with our priorities but also protect what matters most: our
instructional core. While we reduced our expenditures and made permanent changes to staffing and
programs, we did it in a way that protected our instructional core and prioritized organizational and
operational impacts in order to minimize the direct impact on our students and their learning. Due to the
successful passing of Proposition E, the District projects approximately a $2.8 million operating surplus,
growing the fund balance by approximately 40%, which exceeds the 18% fund balance goal.
The District’s instructional and departmental operating budgets were prepared through a Zero-Based
Budgeting (ZBB) approach. This approach helps ensure that the budget is developed to align with
priorities for instructional practices and organizational needs. The ZBB approach is built on needs and
priorities rather than on historical spending trends. The ZBB process is about creating accountability for
what the District spends and transparency of the decisions for where the District spends.
Proposed 2020-2021 total expenditures, including normal debt service payments and business-type
activities, total $67.2 million. Projected total revenues, inclusive of business-type and debt service, of
$69.5 million will result in a surplus of $2.3 million, which will incrase the overall fund balance to $33.3
million. Because many of the revenues and expenditures included in the total budget are restricted for
specific purposes, the operating budget more clearly reflects the District’s expected results of operations.
The operating revenue budget is projected to decrease by $2.7 million or 4.25% to a total of $60.0 million,
primarily due to fluctuations in protested and financial institution taxes. Protested assessed values continue
to remain a challenge for all of St. Louis County taxing authorities. Numerous protested tax appeals crowd
the State Tax Commissions dockets resulting in continuous fluctuations in assessed valuation data and tax
payments that cause significant fluctuations in revenue trends. Further, other revenue categories such as
non-resident tuition, tuition from other local education agencies (LEA’s), and VICC are projected to
decrease due to an increase in resident enrollment, resulting in less available space. Projected revenues are
based upon the best information available at this time, as well as historical trends.
The operating expenditure budget is projected to increase by $1.5 million or 2.64% to a total of $57.3
million. The 2020-2021 school year is the second year of a two-year salary agreement. A 1.1% budgetary
increase for certified teaching staff has been included in the current projections per the salary agreement.
The average salary increase for a teacher is 2.41% due to staff turnover. Administrative salaries, classified
salaries, part-time temporary employment and substitute budgets will be increased by 2%. In addition, the
operating budget supports the maintenance of our facilities and grounds, recommended technology
improvements, textbook, musical instrument and athletic uniform replacement, and curriculum
implementation plans. Due to the successful passing of Proposition E, additional funding for facility and
maintenance needs will be budgeted. Total proposed maintenance Capital Improvement Plan (CIP)
expenditures for 2020-2021 will have an additional $200,000 in funding for a total allocation of $922,790.
An additional $595,000 of funding from Proposition E will also be used to pay the annual financing
payments for improvements at the Center of Clayton.
- 18 -
SCHOOL DISTRICT OF CLAYTON
MANAGEMENT'S DISCUSSION AND ANALYSIS - UNAUDITED
Year ended June 30, 2020
In addition, funding for deferred capital requests will be discussed during the 2020-2021 school year. The
proceeds from the sale of the Maryland building could be used to fund deferred capital requests. These
funds are not part of operating funds and are not reflected in the operating budget. The Board has
committed these funds for capital projects and must approve each expenditure from these funds. Capital
requests in excess of this funding source could be financed over a period of 10 years.
The District will continue to work to control costs and align resources with priorities while also looking at
other strategies to maintain financial balance with minimal impact on students and classrooms.
Operating revenues will exceed operating expenses, which will increase the operating fund balance by
$2.8 million. The 2020-2021 year-end operating fund balances inclusive of business-type activities are
projected at $27.5 million or 47%. However, $4.5 million has been formally committed by the Board for
future capital expenditures. This leaves a net operating fund balance of $23.0 million, or 40% of budgeted
operating expenditures, which exceeds the Board’s fund balance goal of 18%.
As part of the normal budgeting process, long-range projections are developed and continually updated.
This process allows the District to determine how much of available resources can be used for ongoing
projects, such as new programs or initiatives, versus one-time projects, such as facility repairs. Current
long-range projections include new revenue from four developments where construction plans have been
approved.
Centene II – Phase I – 7600, 7606, 7620 Forsyth Boulevard; 14 South Hanley Road, Clayton –
40% tax abated property
Centene University/Early Childhood Development Center – 7501 Maryland Avenue, Clayton
Clarendale of Clayton – 7651 & 7601 Clayton Road, Clayton
Forsyth Point – 8001, 8015, 8019, 8023, 8025, 802, and 8049 Forsyth Boulevard and 15 North
Meramec, Clayton
There are several other potential new developments that are currently in the conceptual phase and have
either not been submitted to the City for review or are waiting on approval. Estimated revenue from these
developments will be included in projections when approved. This conservative and prudent approach to
planning by Boards of Education has been a historical trademark of the District. Long-range financial
planning will continue to be relied upon with administration prepared to react to unanticipated changes to
planned revenue and expenses.
In December 2019, a novel strain of coronavirus (COVID-19), was reported in Wuhan, China. The World
Health Organization has declared the COVID-19 outbreak to constitute a "Public Health Emergency of
International Concern." The extent of the impact of COVID-19 on the District's operational and financial
performance will depend on certain developments, including the duration and spread of the outbreak,
impact on our students, employees and vendors all of which are uncertain and cannot be determined at this
time.
- 19 -
SCHOOL DISTRICT OF CLAYTON
MANAGEMENT'S DISCUSSION AND ANALYSIS - UNAUDITED
Year ended June 30, 2020
Preparation of the 2020-2021 budget began in December 2019. It is our deep commitment to all students’
education that drives our thoughtful conversations and guides our budgetary decisions. Input was sought
from staff, administrators and instructional leaders throughout the District. Specific information on
developing the budget was discussed with the Board as study items on January 22 and May 13, 2020.
Contacting the School District’s Financial Management
This MD&A is intended to provide taxpayers and other constituents with an overview of the financial
condition of the District. Questions concerning any of the information provided in this report or requests
for additional financial information should be addressed to Mary Jo Gruber, Chief Financial Officer
(CFO), at School District of Clayton, #2 Mark Twain Circle, Clayton, Missouri 63105.
- 20 -
SCHOOL DISTRICT OF CLAYTON
STATEMENT OF NET POSITION
June 30, 2020
Governmental
activities
Business-type
activities
Total
ASSETS
$ 35,121,101 $
- $ 35,121,101
772,412
-
772,412
Cash and investments
Restricted cash and investments
Receivables:
Property taxes, net of allowance for uncollectibles of $896,791
58,579,233
-
58,579,233
Sales taxes
384,601
-
384,601
Grants
96,753
-
96,753
Other
199,132
19,296
218,428
Inventories
126,608
-
126,608
Prepaid expenses
346,281
-
346,281
Capital assets not being depreciated:
Land
714,536
-
714,536
Construction in progress
2,362,709
-
2,362,709
Capital assets, net of accumulated depreciation:
Buildings and improvements
96,015,678
-
96,015,678
Furniture and equipment
3,338,060
87,767
3,425,827
Total assets
198,057,104
107,063
198,164,167
DEFERRED OUTFLOWS
Deferred pension contributions
11,741,169
-
11,741,169
Deferred OPEB
724,971
-
724,971
Total deferred outflows
12,466,140
-
12,466,140
LIABILITIES
Accounts payable
1,851,168
24,239
1,875,407
Accrued payroll and payroll taxes
36,391
62
36,453
Unearned revenue
147,113
23,285
170,398
Interfund loans
28,290
(28,290)
-
Non-current liabilities:
Due within one year
8,091,683
-
8,091,683
Due in more than one year
64,694,944
-
64,694,944
Net pension liability
44,610,018
-
44,610,018
OPEB liability
5,109,453
-
5,109,453
Total liabilities
124,569,060
19,296
124,588,356
DEFERRED INFLOWS
Deferred property taxes
57,375,794
-
57,375,794
Pension deferrals
3,129,670
-
3,129,670
OPEB deferrals
1,421,283
-
1,421,283
Total deferred inflows of resources
61,926,747
-
61,926,747
NET POSITION
Net investment in capital assets
31,674,483
87,767
31,762,250
Restricted for:
Debt service
5,821,469
-
5,821,469
Capital projects
3,670,073
-
3,670,073
Teachers' salaries and benefits
10,158,166
-
10,158,166
Medical claims
841,028
-
841,028
Unrestricted
(28,137,782)
-
(28,137,782)
Total net position
$ 24,027,437 $
87,767 $ 24,115,204
The accompanying notes are an integral part of this statement.
- 21 -
SCHOOL DISTRICT OF CLAYTON
STATEMENT OF ACTIVITIES
Year ended June 30, 2020
Program revenues
Charges
Operating
Business-
for
grants and
Governmental
type
Function/Program
Expenses
services
contributions
activities
activities
Total
Governmental activities
Instruction
32,333,373
$
1,024,896
$
635,865
$
(30,672,612)
$
-
$
(30,672,612)
$
Attendance and guidance
2,278,752
-
-
(2,278,752)
-
(2,278,752)
Health services
639,749
-
-
(639,749)
-
(639,749)
Improvement of instruction and
professional development
1,273,140
-
83,498
(1,189,642)
-
(1,189,642)
Media services
945,965
-
-
(945,965)
-
(945,965)
Board of Education services
221,524
-
-
(221,524)
-
(221,524)
Executive administration
3,059,621
-
-
(3,059,621)
-
(3,059,621)
Building level administration
3,049,902
-
-
(3,049,902)
-
(3,049,902)
Operation of plant
11,754,267
806,018
1,149,503
(9,798,746)
-
(9,798,746)
Security services
171,267
-
-
(171,267)
-
(171,267)
Nonallowable transportation
192,241
17,290
-
(174,951)
-
(174,951)
Food services
966,005
654,580
214,349
(97,076)
-
(97,076)
Business services
928,638
-
11,952
(916,686)
-
(916,686)
Central office support services
4,772,627
4,832,360
-
59,733
-
59,733
Adult/community programs
1,134,749
563,156
159,815
(411,778)
-
(411,778)
Facility acquisition and construction
4,572,239
(4,572,239)
-
(4,572,239)
Interest and other charges
3,154,927
-
-
(3,154,927)
-
(3,154,927)
Total governmental activities
71,448,986
7,898,300
2,254,982
(61,295,704)
-
(61,295,704)
Business-type activities
Other
587,773
522,090
-
-
(65,683)
(65,683)
Total business-type activities
587,773
522,090
-
-
(65,683)
(65,683)
Total school district
72,036,759
$
8,420,390
$
2,254,982
$
(61,295,704)
(65,683)
(61,361,387)
General revenues
Taxes
Property taxes, levied for general purposes
16,912,144
-
16,912,144
Property taxes, levied for debt services
8,275,562
-
8,275,562
Property taxes, levied for capital projects
1,328,554
-
1,328,554
Property taxes, levied for teachers' salaries and benefits
33,248,150
-
33,248,150
Other taxes
5,656,324
-
5,656,324
Voluntary student transfer aid
1,367,251
-
1,367,251
Federal and State aid not restricted to specific purposes
General
1,987,417
-
1,987,417
Interest and investment earnings
1,236,444
-
1,236,444
Miscellaneous
155,840
-
155,840
Total general revenues
70,167,686
-
70,167,686
Revenues over (under) expenses
before transfers
8,871,982
(65,683)
8,806,299
Transfers
(109,325)
109,325
-
Change in net position
8,762,657
43,642
8,806,299
Net position at July 1, 2019
15,264,780
44,125
15,308,905
Net position at June 30, 2020
24,027,437
$
87,767
$
24,115,204
$
Net (expense) revenue
and changes in net position
The accompanying notes are an integral part of this statement.
- 22 -
SCHOOL DISTRICT OF CLAYTON
BALANCE SHEET - GOVERNMENTAL FUNDS
June 30, 2020
General
Fund
Special
Revenue
Fund
Debt
Service
Fund
Capital
Projects
Fund
Total
Governmental
ASSETS
Cash and equivalents
$ 9,375,584 $ 13,697,302 $ 6,345,792 $ 4,661,800 $ 34,080,478
Restricted cash and equivalents
-
-
-
772,412
772,412
Receivables
Property taxes - net of allowance for
uncollectibles of $896,791
16,589,696
31,260,372
8,265,745
2,463,420
58,579,233
Sales taxes
240,376
144,225
-
-
384,601
Grants
39,391
57,362
-
-
96,753
Other receivables
184,741
14,336
-
55
199,132
Due from other funds
-
1,593
-
5,090
6,683
Inventories
126,608
-
-
-
126,608
Prepaid expenditures
346,281
-
-
-
346,281
Total assets
$ 26,902,677 $ 45,175,190 $ 14,611,537 $ 7,902,777 $ 94,592,181
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
LIABILITIES
Accounts payable
$
626,567 $
- $
403 $ 1,024,603 $
1,651,573
Due to other funds
34,973
-
-
-
34,973
Accrued payroll and payroll taxes
12,741
23,650
-
-
36,391
Unearned revenue
141,613
5,500
-
-
147,113
Total liabilities
815,894
29,150
403
1,024,603
1,870,050
DEFERRED INFLOWS OF RESOURCES
Deferred property taxes
16,565,675
31,213,150
8,253,991
2,461,533
58,494,349
Deferred grants
93,709
57,362
-
-
151,071
Deferred other
497
-
-
-
497
Total deferred inflows of resources
16,659,881
31,270,512
8,253,991
2,461,533
58,645,917
FUND BALANCES
Nonspendable
Inventories
126,608
-
-
-
126,608
Prepaid expenditures
346,281
-
-
-
346,281
Restricted
Grants
39,391
57,362
-
-
96,753
Teachers salaries and benefits
-
13,818,166
-
-
13,818,166
Debt service
-
-
6,357,143
-
6,357,143
Committed
Capital reserve
-
-
-
3,461,784
3,461,784
Assigned
Other capital projects
-
-
-
954,857
954,857
Student activities
536,771
-
-
-
536,771
Unassigned
8,377,851
-
-
-
8,377,851
Total fund balances
9,426,902
13,875,528
6,357,143
4,416,641
34,076,214
Total liabilities, deferred inflows of
resources and fund balances
$ 26,902,677 $ 45,175,190 $ 14,611,537 $ 7,902,777 $ 94,592,181
The accompanying notes are an integral part of this statement.
- 23 -
Funds
SCHOOL DISTRICT OF CLAYTON
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE
SHEET WITH THE DISTRICT-WIDE STATEMENT OF NET POSITION
June 30, 2020
Amounts reported for governmental activities in the Statement of Net Position are different
because:
Total fund balance - governmental funds
$
34,076,214
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
153,216,349
Accumulated depreciation is
(50,785,366)
102,430,983
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.
1,270,123
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.
841,028
Deferred outflows of resources are not due and payable in the current period and therefore
are not reported in the funds
Deferred pension contributions
11,741,169
Deferred OPEB
724,971
12,466,140
Deferred inflows of resources related to pension deferrals are not reported in governmental
funds.
(3,129,670)
Deferred inflows of resources related to OPEB deferrals are not reported in governmental
funds.
(1,421,283)
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:
66,783,912
4,745,000
696,683
561,032
44,610,018
Bonds payable, net
Capital lease
Accrued interest on the bonds
Compensated absences
Net pension liability
OPEB liability
5,109,453
(122,506,098)
Net position of governmental activities
$
24,027,437
The accompanying notes are an integral part of this statement.
- 24 -
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 -
SCHOOL DISTRICT OF CLAYTON
STATEMENT OF NET POSITION - PROPRIETARY FUNDS
June 30, 2020
Business-type
activities -
Enterprise
fund
Governmental
activities -
Internal
service fund
Total
ASSETS
Current assets
Cash
$
-
$
1,040,623
$
1,040,623
Other receivables
19,296
-
19,296
Noncurrent assets
Due from other funds
28,290
-
28,290
Capital assets
87,767
-
87,767
Total assets
135,353
1,040,623
1,175,976
LIABILITIES
Current liabilities
Accounts payable
24,239
199,595
223,834
Accrued payroll and payroll taxes
62
-
62
Unearned revenue
23,285
-
23,285
Total current liabilities
47,586
199,595
247,181
NET POSITION
Net investment in capital assets
87,767
-
87,767
Unrestricted
-
841,028
841,028
Total net position
$
87,767
$
841,028
$
928,795
The accompanying notes are an integral part of this statement.
- 27 -
SCHOOL DISTRICT OF CLAYTON
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET POSITION - PROPRIETARY FUNDS
Year ended June 30, 2020
Business-type
activities -
Enterprise
fund
Governmental
activities -
Internal
service fund
Total
Operating revenues
Contributions
$
-
$
4,825,785
$
4,825,785
Rents
63,684
-
63,684
Tuition and fees
458,406
-
458,406
Other
-
6,575
6,575
Total operating revenues
522,090
4,832,360
5,354,450
Operating expenses
Salaries
388,954
-
388,954
Benefits
85,184
-
85,184
Purchased services
79,100
-
79,100
Supplies
25,816
-
25,816
Claims expenses & fees
-
4,350,659
4,350,659
Depreciation
8,719
-
8,719
Total operating expenses
587,773
4,350,659
4,938,432
Operating income (loss)
(65,683)
481,701
416,018
Other
Transfers to governmental activities
109,325
-
109,325
CHANGES IN NET POSITION
43,642
481,701
525,343
Net position at July 1, 2019
44,125
359,327
403,452
Net position at June 30, 2020
$
87,767
$
841,028
$
928,795
The accompanying notes are an integral part of this statement.
- 28 -
SCHOOL DISTRICT OF CLAYTON
STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS
Year ended June 30, 2020
Business Type
Activities -
Enterprise
fund
Governmental
activities -
Internal
service fund
Total
Cash flows from operating activities:
Cash received from employee/employer contributions
$
- $
4,832,360
$
4,832,360
Cash received from user charges
430,987
-
430,987
Cash payments to employees for services
(571,647)
-
(571,647)
Cash payments for supplies and services
(120,185)
(4,495,782)
(4,615,967)
Net cash provided (used) by operating activities
(260,845)
336,578
75,733
Cash flows from noncapital financing activites:
Operating subsidies and transfers to other funds
260,845
-
260,845
Net increase in cash
-
336,578
336,578
Cash at July 1, 2019
-
704,045
704,045
Cash at June 30, 2020
$
- $
1,040,623
$
1,040,623
Reconciliation of operating income (loss) to net cash provided (used)
by operating activities
Operating income (loss)
$
(65,683) $
481,701
$
416,018
Adjustments to reconcile operating income (loss) to net cash provided
(used) by operating activities:
Depreciation
8,719
-
8,719
Decrease in accounts receivable
11,006
-
11,006
Decrease in accounts payable
(15,269)
(145,123)
(160,392)
Decrease in accrued payroll and payroll taxes
(97,509)
-
(97,509)
Decrease in deferred revenues
(102,109)
-
(102,109)
Net cash provided by (used in) operating activities:
$
(260,845) $
336,578
$
75,733
The accompanying notes are an integral part of this statement.
- 29 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2020
NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The School District of Clayton (the District), established under the Statutes of the State of
Missouri, is governed by an elected seven-member board as described in RSMo Chapter 162. The
Board of Education (Board) is the basic level of government that has financial accountability and
control over all activities related to public school education in the District.
The District’s financial statements are prepared in accordance with generally accepted accounting
principles (GAAP). The Governmental Accounting Standards Board (GASB) is responsible for
establishing GAAP for state and local governments through its pronouncements (Statements and
Interpretations). The more significant accounting policies used by the District are as follows.
1.
Principles Determining the Scope of Reporting Entity
GAAP requires the financial reporting entity include (1) the primary government, (2)
organizations for which the primary government is financially accountable, and (3) other
organizations for which the nature and significance of their relationship with the primary
government are such that exclusion would cause the reporting entity’s financial statements to be
misleading or incomplete. The criteria provided in the applicable GASB statements have been
considered and there are no other agencies or entities, which should be presented with the District.
2.
Basis of Presentation
District-Wide Financial Statements
The Statement of Net Position and Statement of Activities display information about the reporting
government as a whole. They include all funds of the reporting entity. The statements distinguish
between governmental and business-type activities. Governmental activities generally are financed
through taxes, intergovernmental revenues, and other non-exchange revenues. Business-type
activities are financed in whole or in part by fees charged to external parties for goods or services.
The Statement of Activities presents a comparison between direct expenses and program revenues
for business-type activities and for each function of the District’s governmental activities. Direct
expenses are those that are specifically associated with and are clearly identifiable to a particular
function. The District does not allocate indirect costs. Program revenues include charges paid by
the recipients of goods and services offered by the programs and grants and contributions that are
restricted to meeting the operational or capital requirements of a particular program. Revenues not
classified as program revenues, including all taxes, are presented as general revenues.
- 30 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2020
NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
2.
Basis of Presentation - Continued
Fund Financial Statements
Fund financial statements of the reporting entity are organized into funds, each of which is
considered to be separate accounting entities. Each fund is accounted for by providing a separate
set of self-balancing accounts that constitute its assets, liabilities, fund equity, revenues, and
expenditures/expenses. The emphasis is placed on major funds. Each major fund is presented in a
separate column while non-major funds are aggregated and presented in a single column.
The major funds of the financial reporting entity are described below:
Governmental Funds
General Fund
The General Fund is the primary operating fund of the District and is used to account for all
financial resources except those required to be accounted for in another fund.
Special Revenue Fund
The Special Revenue Fund is used to account for specific revenue sources that are restricted,
committed, or assigned for the payment of salaries and certain employee benefits for certified
personnel.
Debt Service Fund
The Debt Service Fund is used to account for the accumulation of resources that are restricted,
committed, or assigned for the periodic payment of principal, interest, and fiscal charges on
general long-term debt.
Capital Projects Fund
The Capital Projects Fund is used to account for resources that are restricted, committed, or
assigned for the acquisition or construction of major capital assets.
Proprietary Funds
Enterprise Fund
Enterprise funds are used to account for business-like activities financed primarily by user
charges. The measurement of financial activity focuses on net income similar to the private
sector.
- 31 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2020
NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
2.
Basis of Presentation - Continued
Proprietary Funds - Continued
Internal Service Fund
The internal service fund accounts for the activities of the District’s medical self-insurance
fund. This includes the collection of premiums from employees and the payment of claims,
direct insurance payments, and administrative fees. A liability for estimated claims incurred is
recorded in this fund.
3.
Measurement Focus and Basis of Accounting
Measurement focus is a term used to describe which transactions are recorded within the various
financial statements. Basis of accounting refers to when transactions are recorded regardless of the
measurement focus applied.
Measurement Focus
The District-wide financial statements are prepared using the economic resources
measurement focus, as are the proprietary fund financial statements. The accounting
objectives of this measurement focus are the determination of changes in net position, net
position, and cash flows. All assets and liabilities, whether current or noncurrent, are reported.
The governmental fund financial statements are prepared using the current financial resources
measurement focus. Only current financial assets and liabilities are generally included in the
balance sheets. The operating statements present sources and uses of available spendable
financial resources during a given period. These funds use fund balance as their measure of
available spendable financial resources at the end of the period.
Basis of Accounting
Basis of accounting refers to when revenues and expenditures are recognized in the accounts
and reported in the financial statements. Basis of accounting relates to the timing of the
measurements made, regardless of the measurement focus applied.
The District-wide financial statements are prepared using the economic resources
measurement focus and accrual basis of accounting, as are the proprietary fund financial
statements. Under the accrual basis of accounting, revenues are recognized when earned and
expenses are recognized when the liability is incurred or economic assets used. Revenues,
expenses, gains, losses, assets, and liabilities resulting from exchange and exchange-like
transactions are recognized when the exchange takes place.
- 32 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2020
NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
3.
Measurement Focus and Basis of Accounting - Continued
Basis of Accounting - Continued
The governmental fund financial statements are prepared using the current financial resources
measurement focus and the modified accrual basis of accounting. Under the modified accrual
basis of accounting, revenues are recognized when measurable and available. Measurable
means knowing or being able to reasonably estimate the amount. Available means collectible
within the current period or within sixty days after year end. Property and sales taxes, interest,
and certain grants are susceptible to accrual. Miscellaneous revenue items, which are not
susceptible to accrual, are recognized as revenues only as they are received in cash.
Expenditures, including capital outlay, are recorded when the related fund liability is incurred,
except for principal and interest on general obligation long-term debt which are reported when
due.
4.
Cash and Investments
Cash resources from all funds, except the Debt Service Fund, are combined to form a pool of cash
and short term investments. Earnings from investments are allocated to each fund on the basis of
the applicable cash balance participation by each fund. A separate account is maintained for the
Debt Service Fund. Earnings are deposited directly into this account.
5.
Restricted Cash and Investments
Restricted cash and investments represent amounts whose use is limited by legal requirements and
consist of amounts escrowed for future capital improvements.
6.
Interfund Receivables and Payables
During the course of operations, numerous transactions occur between individual funds that may
result in amounts owed between funds. Those related to goods and service type transactions are
classified as “due to and from other funds.” Interfund receivables and payables between funds
within governmental activities are eliminated in the Statement of Net Position.
7.
Receivables
Major receivables for the governmental activities include property and sales taxes, and state and
federal grants. Business-type activities and proprietary funds report user charges as their major
receivables. Allowances for uncollectible property taxes are based upon historical trends.
- 33 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2020
NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
8.
Inventories
Inventory of supplies is stated at cost, on the first-in, first-out basis. The costs of inventory items
are recorded as expenditures when issued to requisitioning departments. Reported inventories at
year end are offset by a nonspendable fund balance account since they do not represent expendable
financial resources.
9.
Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are reported
as prepaid items using the consumption method. Reported prepaid items at year end are offset by a
nonspendable fund balance account since they do not represent expendable financial resources.
10. Capital Assets and Depreciation
In the district-wide financial statements, capital assets purchased or acquired with an original cost
of $1,000 or more are reported at historical cost or estimated historical cost if actual cost is
unavailable. Contributed assets are reported at their fair market value as of the date received.
Additions, improvements, and other capital outlays that significantly extend the useful life of an
asset are capitalized. Other costs incurred for repairs and maintenance are expensed as incurred.
Depreciation on assets is provided on the straight-line basis over the following estimated useful
lives:
Buildings and improvements
20 - 50 years
Furniture and equipment
5 - 20 years
In the fund financial statements, capital assets used in governmental fund operations are accounted
for as capital outlay expenditures of the governmental fund upon acquisition. Capital assets used
in proprietary fund operations are accounted for the same as in the district-wide financial
statements.
11. Deferred Outflows of Resources
The District reports decreases in net position that relate to future periods as deferred outflows of
resources in a separate section of its Balance Sheet - Governmental Funds and the Statement of
Net Position - Proprietary Funds. Deferred outflows of resources reported in this year's financial
statements are deferred outflows of resources related to the District's defined benefit pension plans
as further disclosed in Note G and deferred outflows of resources related to other post-
employment benefits (OPEB) as further discussed in Note I. No deferred outflows of resources
affect the governmental funds financial statements in the current year.
- 34 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2020
NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
12. Compensated Absences
The District’s policies regarding vacation time permit employees to accumulate earned but unused
vacation leave. The liability for these compensated absences is recorded in the District-wide
statements. In the fund financial statements, governmental funds report only the compensated
absence liability from expendable available financial resources, while the proprietary funds report
the liability as it is incurred.
13. Long-Term Liabilities
All long-term liabilities to be paid from governmental and business-type activities are reported as
liabilities in the District-wide financial statements. Long-term liabilities primarily consist of
bonds, pension liabilities, accrued compensated absences, and other post-employment benefit
obligations.
Long-term liabilities are not due and are not payable in the current period and, therefore, are
not reported as liabilities in the governmental fund financial statements.
14. Deferred Inflows of Resources
The District's Statements of Net Position and its Balance Sheet - Governmental Funds report a
separate section for deferred inflows of resources. This separate financial statement element
reflects an increase in net position that applies to a future period(s). Deferred inflows of resources
are reported in the District's Statement of Net Position for actual pension plan investment earnings
in excess of the expected amounts included in determining pension expense. This deferred inflow
of resources is attributed to pension expense over multiple years, including the current year. The
District also reports deferred inflows in the Statement of Net Position for property taxes that there
is an enforceable legal claim attached for which there has not yet been a tax levy set. Lastly,
the District reports a deferred inflow related to OPEB for changes in assumptions to the pension
plan.
In its governmental funds, the only deferred inflow of resources is for revenues that are not
considered available. The District will not recognize the related revenues until they are available
(collected not later than 60 days after the end of the District's fiscal year) under the modified
accrual basis of accounting. Accordingly, unavailable revenues from property taxes, grants, and
other are reported in the Balance Sheet - Governmental Funds.
- 35 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2020
NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
15. Equity Classifications
In the District-wide financial statements, equity is classified as net position and displayed in three
components. Net investment in capital assets consists of capital assets including restricted capital
assets, net of accumulated depreciation, reduced by the outstanding balances of any bonds,
mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or
improvement of those net assets. Net position is reported as restricted when there are constraints
imposed on their use either through enabling legislation adopted by the District, or
through external restrictions imposed by creditors, grantors, contributors, or laws or regulations
of other governments. The remaining net position that does not meet the definition of
restricted or net investment in capital assets is reported as unrestricted. The District first
utilizes restricted resources to finance qualifying activities.
In the fund financial statements, governmental fund equity is classified as fund balance.
Governmental funds report the following classifications of fund balance:
Nonspendable – funds that cannot be spent due to their form (e.g., inventories and prepaid
expenditures), or funds that legally or contractually must be maintained intact;
Restricted – funds that are mandated for a specific purpose by external parties, constitutional
provisions, or enabling legislation;
Committed – funds that are set aside for a specific purpose by the District’s highest level of
decision making authority, the Board. The fund balance policy requires formal resolution to be
taken prior to the end of the fiscal year. The same formal action must be taken to remove or
change the limitations placed on the funds;
Assigned – consists of funds that are set aside with the intent to be used for a specific purpose.
Under the District’s adopted policy, amounts may be assigned by the Chief Financial Officer;
and,
Unassigned – amounts that have not been assigned to other funds or restricted, committed, or
assigned to a specific purpose within the General Fund. In other governmental funds, if
expenditures incurred for specific purposes exceed the amounts restricted, committed, or
assigned to those purposes, a negative unassigned fund balance may be reported.
When an expenditure is incurred for purposes for which both restricted and unrestricted fund
balance is available, the District considers restricted funds to have been spent first unless legal
requirements disallow it. When an expenditure is incurred for which committed, assigned, or
unassigned fund balances are available, the District considers amounts to have been spent first out
of committed funds, then assigned funds, and finally unassigned funds as needed, unless the Board
has provided otherwise in its commitment or assignment actions.
- 36 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2020
NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
15. Equity Classifications - Continued
The details of the fund balances are included in the Balance Sheet - Governmental Funds.
Proprietary funds equity is classified the same as in the District-wide financial statements.
16. Revenue
Property taxes attach as an enforceable lien on property as of January 1. Taxes are levied annually
by November 1 and are due by December 31. In the District-wide financial statements, property
tax revenues are recognized in the fiscal year levied. In the fund financial statements, property tax
revenues are recognized in the fiscal year levied when they become measurable and available.
Available property tax revenue includes those property tax receivables expected to be collected
within 60 days of year end. Revenues not collected within 60 days of year end are reported as
deferred inflows of resources.
Sales tax is collected by the State of Missouri and remitted to districts within the state based on
eligible pupils. The State receives the sales tax approximately one month after collection by
vendors. Sales taxes collected by the State in June and July, which represent sales for May and
June, and received by the District in July and August have been accrued and reported as sales tax
receivable.
Entitlements and grants are recognized as revenue in the fiscal year in which all eligibility
requirements have been satisfied. Grant and entitlements received before eligibility requirements
are met are reported as unearned revenue. In the fund financial statements, entitlement and grant
revenues not collected within 60 days of year end are reported as deferred inflows of resources.
Operating revenues and expenses for proprietary funds are those that result from providing
services and producing and delivering goods and services. It also includes all revenue and
expenses not related to capital and related financing, noncapital financing, and investing activities.
17. Post-Employment Benefits
Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), the District provides
healthcare benefits to eligible former employees and eligible dependents that elect to participate.
Certain requirements are outlined by the federal government for this coverage. The premium is
paid in full by the insured on or before the 15th day of the month for the actual month covered.
This program is offered for a duration of eighteen months after the termination date. The District
prepares the initial COBRA enrollment forms and the former employee makes the premium
payments directly to the District. There is no associated cost to the District under this program.
- 37 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2020
NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
17. Post-Employment Benefits - Continued
In accordance with Chapter 169, RSMo, the District offers continued healthcare benefits to
employees who are eligible for normal or early retirement under PSRS or PEERS. The retiree or
eligible dependent pays the premium directly to the District. The District currently pays for the
implicit rate subsidy associated with these postemployment health care benefits on a pay-as-you-
go basis.
18. Use of Estimates
The preparation of the financial statements in conformity with GAAP requires management to
make estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period. Actual results could differ
from those estimates.
19. Accounting Changes
For the year ended June 30, 2020, the District changed the accounting estimate for the useful life
of building improvements from 50 years to 20 years due to the life over which these
improvements generally last. The change is being applied prospectively, beginning July 1, 2019.
With this change, certain assets which have been in service in excess of 20 years, but fewer than
50 years are being fully depreciated during the year ended June 30 2020.
The effect of this change in the current period is an increase of $345,384 in governmental
activities expenses and a corresponding decrease in changes in net position for governmental
activities.
NOTE B – CASH AND INVESTMENTS
The District maintains a cash and temporary cash investment pool that is available for use by all
funds except the Debt Service Fund (Missouri law requires that all deposits of the Debt Service
Fund be kept separate and apart from all other funds of the District). Each fund’s portion of this
pool is displayed on the balance sheet as “cash and investments” under each fund’s caption.
- 38 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2020
NOTE B – CASH AND INVESTMENTS - CONTINUED
Deposits
Missouri statutes require that all deposits with financial institutions be collateralized in an amount
at least equal to uninsured deposits. At June 30, 2020, the carrying amount of the deposits under
District control was $17,219,800 and the bank balance was $17,674,446. Of the bank balance,
$250,000 was covered by Federal Deposit Insurance Corporation (FDIC), and the remaining
amount was collateralized by securities held by the District’s safekeeping agent, pledged in the
name of the District.
Investments
The District may purchase any investments allowed by the Missouri State Treasurer. These
include but are not limited to (1) obligations of the United States Government, or any agency or
instrumentality thereof, maturing and becoming payable not more than three years from the date of
purchase, (2) repurchase agreements maturing and becoming payable within 90 days secured by
U.S. Treasury obligations or obligations of U.S. Government agencies or instrumentalities of any
maturity, as provided by law, or (3) other short-term obligations of the United States and deposit
accounts with insured financial institutions, provided the accounts are entirely insured by the
FDIC or collateralized with government securities that have a fair value exceeding the deposit
amount. As of June 30, 2020, the District had the following investments and maturities:
Type
Value
Investment Maturity
0 to 1 Year
External investment pools
$
17,901,301 $
17,901,301
Morgan Stanley Inst. Liquidity Funds Government
Portfolio
772,412
772,412
$
18,673,713 $
18,673,713
The District has investments managed by the Missouri Securities Investment Program. All funds
in this program are invested in accordance with Section 165.061 RSMo. Each school district owns
a pro rata share of each investment, which is held in the name of the program. The investments are
stated at amortized cost, which approximates fair value.
In June 2019, the District entered into a lease purchase agreement with Commerce Trust
Company. The funds were subsequently transferred to UMB in April 2020. The funds received are
invested with UMB in the Morgan Stanley Institutional Liquidity Funds Government Portfolio,
which primarily consists of U.S. Treasury obligations, U.S. government agency debt, and related
repurchase agreements. The investments are stated at amortized cost, which approximates fair
value.
- 39 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2020
NOTE B – CASH AND INVESTMENTS - CONTINUED
Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value
of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of
its fair value to changes in market interest rates. The District’s investment policy does not limit
investment maturities as a means of managing its exposure to fair value losses arising from
increasing interest rates. However, one of the ways the District manages its exposure to interest
rate risk is by purchasing a combination of short term and long term investments and by timing
cash flows from maturities so a portion of the portfolio is maturing or coming close to maturity
evenly over time as necessary to provide the cash flow and liquidity needed for operations.
Credit Risk
Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its
obligation to the holder of the investment. State law limits investments that can be held by
government agencies to safe, high-quality securities. This is measured by the assignment of a
rating by a nationally recognized statistical rating organization.
The District’s regular investments in Missouri Securities Investment Program are rated AAAm by
Standard and Poor’s. The District’s investments held in escrow by UMB are rated AAAmmf by
Fitch Ratings.
Concentration of Credit Risk
The investment policy of the District contains no limitations on the amount that can be invested in
any one issuer beyond what is provided by law. The District did not have any investments
(excluding investments issued or explicitly guaranteed by the U.S. Government, external
investment pools, or investments in mutual funds) in any one issuer representing 5% or more of
total investments.
Custodial Credit Risk
For an investment, custodial credit risk is the risk that in the event of the failure of the
counterparty, the District will not be able to recover its deposits, the value of its investments, or be
able to recover collateral securities that are in the possession of an outside party. The District does
not have a formal policy regarding the custody of its investments. All investment activities are
conducted through the depository bank and the District’s financial advisor. As of June 30, 2020,
the District’s investments were held by the investment’s counterparty.
- 40 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2020
NOTE B – CASH AND INVESTMENTS - CONTINUED
Summary
The cash deposits and investments are summarized and presented in the financial statements as
follows as of June 30, 2020:
Carrying amount of deposits
$
17,219,800
Investments
18,673,713
$
35,893,513
NOTE C – TAXES
Property taxes attach as an enforceable lien on property as of January 1. Taxes are levied by
November 1 and payable by December 31. All unpaid taxes become delinquent January 1 of the
following year. St. Louis County collects the property taxes and remits them to the District.
The District also receives sales tax collected by the state and remitted based on eligible pupils.
The District is required to reduce its property tax levy by one-half the amount of sales tax
estimated to be received in the subsequent calendar year. The District's taxpayers have voted to
permanently waive this property tax rollback.
The assessed valuation of the tangible taxable property for the calendar year 2019 for purposes of
local taxation was:
Real estate:
Residential
$
702,710,640
Commercial
518,529,180
Personal property
98,711,760
1,319,951,580
Less tax increment financing
10,057,820
$ 1,309,893,760
- 41 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2020
NOTE C – TAXES - CONTINUED
The tax levy per $100 of the assessed valuation of tangible taxable property for the calendar year
2019 for purposes of local taxation was as follows:
Adjusted
General Fund
$
1.2732
Special Revenue Fund
2.5030
Debt Service Fund
0.6230
Capital Projects Fund
0.1000
$
4.4992
Due to the high increase in assessed valuation, the District voluntarily rolled back the tax rate 15
cents for the calendar year 2019. The receipts of current property taxes during the fiscal year ended
June 30, 2020 aggregated approximately 99.3% of the 2019 assessment computed on the basis of
the levy as shown above.
- 42 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2020
NOTE D – CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2020, was as follows:
Balance at
July 1, 2019
Additions
Disposals
Balance at
June 30, 2020
Governmental activities
Capital assets not being depreciated
Land
$
714,536 $
-
$
-
$
714,536
Construction in progress
-
2,362,709
-
2,362,709
Capital assets that are depreciated
Buildings and improvements
129,798,504
675,408
-
130,473,912
Furniture and equipment
18,805,821
886,662
(27,291)
19,665,192
Totals at historical cost
149,318,861
3,924,779
(27,291) 153,216,349
Less: accumulated depreciation
Buildings and improvements
(31,263,249)
(3,194,985)
-
(34,458,234)
Furniture and equipment
(15,467,532)
(884,623)
25,023
(16,327,132)
Total accumulated depreciation
(46,730,781)
(4,079,608)
25,023
(50,785,366)
$ 102,588,080 $
(154,829) $
(2,268) $ 102,430,983
Business-type activities
Capital assets that are depreciated
Furniture and equipment
$
113,578 $
52,361 $
-
$
165,939
Less accumulated depreciation
Furniture and equipment
(69,453)
(8,719)
-
(78,172)
$
44,125 $
43,642 $
-
$
87,767
Depreciation expense for governmental activities is reported in the Statement of Activities and
was allocated to operation of plant.
- 43 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2020
NOTE E – LONG-TERM LIABILITIES
The following is a summary of the changes in long-term liabilities for the year ended June 30,
2020:
Balance
as of
July 1, 2019
Additions
Reductions
Balance,
as of
June 30, 2020
Amount
due within
one year
General obligation bonds
$ 69,052,000 $ 31,075,000 $ 37,410,000
$ 62,717,000 $
6,915,000
Deferred amounts for issuance
premium
2,890,824
1,741,862
565,774
4,066,912
-
Total bonds payable, net
71,942,824
32,816,862
37,975,774
66,783,912
6,915,000
Interest
978,592
696,683
978,592
696,683
696,683
Capital lease
5,065,000
-
320,000
4,745,000
480,000
Compensated absences
372,056
188,976
-
561,032
-
$ 78,358,472 $ 33,702,521 $ 39,274,366
$ 72,786,627 $
8,091,683
Principal and interest on general obligation bonds are paid through the Debt Service Fund.
Principal and interest on capital leases are paid through the Capital Projects Fund. Compensated
absences are paid through the General Fund and Special Revenue Fund.
Bonds Payable
General obligation bonds outstanding at June 30, 2020 were as follows:
Date issued
Maturity date
Rate of interest
Original
issue
amount
Balance
at June 30,
2020
10/14/09
03/01/24
1.37%
$
9,185,000
$
9,185,000
11/03/09
03/01/21
4.60%-4.75%
10,720,000
1,675,000
09/08/10
03/01/27
4.70%
3,987,000
3,987,000
12/27/17
03/01/29
4.00%-5.00%
23,465,000
16,795,000
12/05/19
03/01/29
2.00%-3.00%
31,075,000
31,075,000
$
62,717,000
- 44 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2020
NOTE E – LONG-TERM LIABILITIES - CONTINUED
On December 5, 2019, the District issued general obligation refunding bonds in the amount of
$31,075,000. The proceeds of the bond issue were used to refund the outstanding principal and
interest of the District's Series 2010B and 2010C general obligation bonds on March 1, 2020
(the crossover date). The refunding resulted in an economic gain of $2,329,590.
The annual requirements to amortize the general obligation bonds as of June 30, 2020, including
interest payments, are as follows:
Year ending June 30,
Principal
Interest
Total
2021
$
6,915,000
$
2,055,786
$
8,970,786
2022
6,720,000
1,819,024
8,539,024
2023
4,920,000
1,593,023
6,513,023
2024
9,410,000
1,409,924
10,819,924
2025
6,110,000
1,277,339
7,387,339
2026-2030
28,642,000
2,548,628
31,190,628
$
62,717,000
$
10,703,724
$
73,420,724
Legal Debt Margin
Article VI, Section 26(b) of the Constitution of Missouri limits the amount of General Obligation
Bonds which can be authorized and outstanding by a school district to 15% of the
assessed valuation of taxable tangible property within the District. The legal debt margin of the
District at June 30, 2020 was:
Constitutional debt limit
$
196,484,064
General obligation bonds payable
(62,717,000)
Amount available in
Debt Service Fund
6,357,143
Legal debt margin
$
140,124,207
- 45 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2020
NOTE E – LONG-TERM LIABILITIES - CONTINUED
Capital Lease Payable
On June 1, 2019, the District entered into a $5,065,000 capital lease purchase agreement. The
proceeds of the lease are being used for $550,867 of capital improvements to Meramec
Elementary and $4,514,133 of capital contributions to the joint venture, Clayton Recreation,
Sports and Wellness Commission. See Note K for more information on the joint venture.
As of June 30, 2020, there was $772,412 in unused lease proceeds available in the escrow project
fund. The District is only obligated to pay such payments under the lease as may lawfully be made
from funds budgeted and appropriated for that purpose. Should the District fail to budget,
appropriate or otherwise make available funds sufficient to pay the payments, the lease would be
deemed terminated at the end of the current term and the collateral would transfer to the
possession of the lessor. Meramec Elementary School is pledged as collateral.
The District has the option to purchase the lessor's interest in the project through prepayment. If the
prepayment is paid with internally generated funds (i.e. not in connection with refinancing or
grant), there would be no prepayment premium. Otherwise, the prepayment premium would be 3%
of the remaining principal portion if on or before the first anniversary of the commencement date;
2% of the remaining principal portion if after the first anniversary but on or before the second
anniversary of the commencement date; 1% of the remaining principal portion if after the second
anniversary of the commencement date.
The following is a schedule of future minimum lease payments under the capital lease together
with the present value of the net minimum lease payments as of June 30, 2020:
Year ended June 30,
2021
$
594,500
2022
592,917
2023
591,093
2024
594,244
2025-2029
2,963,134
Total minimum lease payments
5,335,888
Less amount representing interest
(590,888)
Present value of minimum lease
payments
$
4,745,000
- 46 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2020
NOTE F – TAX ABATEMENTS
The District is subject to tax abatement agreements granted by St. Louis County, the City of
Clayton, and the City of Richmond Heights. Abatements under Chapter 100 and Chapter 353 of
RSMo exist within the District. During the term of the agreements, a certain percentage of the
property tax amount for the assessed value of the eligible property is abated. For fiscal year 2020,
the total amount of tax abated was approximately $1.2 million in real estate tax.
NOTE G – RETIREMENT PLANS
The District contributes to the Public School Retirement System of Missouri (PSRS) and the
Public Education Retirement System of Missouri (PEERS) (together Systems), a cost-sharing
multiple-employer defined benefit pension plan.
Plan Description
PSRS is a mandatory cost-sharing multiple-employer retirement system for all full-time
certificated employees and certain part-time certificated employees of all public school districts in
Missouri (except the school districts of St. Louis and Kansas City) and all public community
colleges. PSRS also includes certificated employees of the Systems, Missouri State Teachers'
Association, Missouri State High School Activities Association, and certain employees of the state
of Missouri who elected to remain covered by PSRS under legislation enacted in 1986, 1987 and
1989.
The majority of PSRS members are exempt from Social Security contributions. In some instances,
positions may be determined not to be exempt from Social Security contributions. Any PSRS
member who is required to contribute to Social Security comes under the requirements of Section
169.070 (9) RSMo, known as the "two-third’s statute." PSRS members required to contribute to
Social Security are required to contribute two-thirds of the approved PSRS contribution rate and
their employer is required to match the contribution. The members' benefits are further calculated
at two-thirds the normal benefit amount.
PEERS is a mandatory cost-sharing multiple employer retirement system for all non-certificated
public school district employees (except the school districts of St. Louis and Kansas City),
employees of the Missouri Association of School Administrators, and community college
employees (except the Community College of St. Louis). Employees of covered districts who
work 20 or more hours per week on a regular basis and who are not contributing members of
PSRS must contribute to PEERS. Employees of the Systems who do not hold Missouri educator
certificates also contribute to PEERS. PEERS was established as a trust fund by an Act of the
Missouri General Assembly effective October 13, 1965. Statutes governing the Systems are found
in Sections 169.600 - 169.715 and Sections 169.560-169.595 RSMo. The statutes place
responsibility for the operation of PEERS on the Board of Trustees of PSRS.
- 47 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2020
NOTE G – RETIREMENT PLANS - CONTINUED
Benefits Provided
PSRS is a defined benefit plan providing retirement, disability, and death/survivor benefits.
Members are vested for service retirement benefits after accruing five years of service. Individuals
who (a) are at least age 60 and have a minimum of five years of service, (b) have 30 years of
service, or (c) qualify for benefits under the "Rule of 80" (service and age total at least 80) are
entitled to a monthly benefit for life, which is calculated using a 2.5% benefit factor. Actuarially
age-reduced benefits are available for members with five to 24.9 years of service at age 55.
Members who are younger than age 55 and who do not qualify under the “Rule of 80" but have
between 25 and 29.9 years of service may retire with a lesser benefit factor. Members that are
three years beyond normal retirement can elect to have their lifetime monthly benefits actuarially
reduced in exchange for the right to also receive a one-time partial lump sum (PLSO) payment at
retirement equal to 12, 24, or 36 times the Single Life benefit amount.
PEERS is a defined benefit plan providing retirement, disability, and death benefits to its
members. Members are vested for service retirement benefits after accruing five years of service.
Individuals who (a) are at least age 60 and have a minimum of five years of service, (b) have 30
years of service, or (c) qualify for benefits under the “Rule of 80” (service and age total at least 80)
are entitled to a monthly benefit for life, which is calculated using a 1.61% benefit factor.
Members qualifying for "Rule of 80" or "30-and-out" are entitled to an additional temporary
benefit until reaching minimum Social Security age (currently age 62), which is calculated using a
0.8% benefit factor. Actuarially age-reduced retirement benefits are available with five to 24.9
years of service at age 55. Members who are younger than age 55 and who do not qualify under
the “Rule of 80” but have between 25 and 29.9 years of service may retire with a lesser benefit
factor. Members that are three years beyond normal retirement can elect to have their lifetime
monthly benefits actuarially reduced in exchange for the right to also receive a PLSO payment at
retirement equal to 12, 24, or 36 times the Single Life benefit amount.
Summary Plan Descriptions detailing the provisions of the plans can be found on the Systems'
website at www.psrs-peers.org.
- 48 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2020
NOTE G – RETIREMENT PLANS - CONTINUED
Cost-of-Living Adjustments (“COLA”)
The Board of Trustees of the Systems established a policy of providing COLAs to both PSRS and
PEERs as follows:
If the June to June change in the Consumer Price Index for All Urban Consumers (CPI-U) is
less than 2% for consecutive one-year periods, a COLA increase of 2% will be granted when
the cumulative increase is equal to or greater than 2%, at which point the cumulative increase
in the CPI-U will be reset to zero. For the following year, the starting CPI-U will be based on
the June value immediately preceding the January 1 at which the 2% COLA increase is
granted.
If the June to June change in the CPI-U is greater than or equal to 2%, but less than 5%, a
COLA increase of 2% will be granted.
If the June to June change in the CPI-U is greater than or equal to 5%, a COLA increase of 5%
will be granted.
If the CPI decreases, no COLA is provided.
For any PSRS member retiring on or after July 1, 2001, such adjustments commence on the
second January after commencement of benefits and occur annually thereafter. For PEERS
members, such adjustments commence on the fourth January after commencement of benefits and
occur annually thereafter. The total of such increases may not exceed 80% of the original benefit
for any member.
Contributions
PSRS members were required to contribute 14.5% of their annual covered salary during fiscal
years 2018, 2019 and 2020. Employers were required to match the contributions made by
employees. The contribution rate is set each year by the Board of Trustees of the Systems upon the
recommendation of the independent actuary within the contribution restrictions set in Section
169.030 RSMo. The annual statutory increase in the total contribution rate may not exceed l% of
pay.
PEERS members were required to contribute 6.86% of their annual covered salary during fiscal
years 2018, 2019 and 2020. Employers were required to match the contributions made by
employees. The contribution rate is set each year by the Board of Trustees of the Systems upon the
recommendation of the independent actuary within the contribution restrictions set in Section
169.030 RSMo. The annual statutory increase in the total contribution rate may not exceed 0.5%
of pay.
- 49 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2020
NOTE G – RETIREMENT PLANS - CONTINUED
Contributions - Continued
The District's contributions to PSRS and PEERS were $3,997,277 and $592,417, respectively, for
the year ended June 30, 2020.
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to Pensions
At June 30, 2020, the District recorded a liability of $40,701,088 for its proportionate share of
PSRS net pension liability and $3,908,930 for its proportionate share of PEERS net pension
liability. In total the District recorded net pension liabilities of $44,610,018. The net pension
liability for the plans in total was measured as of June 30, 2019, and determined by an actuarial
valuation as of that date. The District's proportionate share of the total net pension liability was
based on the ratio of its actual contributions paid to PSRS and PEERS of $3,925,649 and
$588,545, respectively, for the year ended June 30, 2019 relative to the total contributions of
$711,760,160 for PSRS and $119,080,046 for PEERS from all participating employers. At June
30, 2019, the District's proportionate share was 0.5515% for PSRS and 0.4942% for PEERS.
For the year ended June 30, 2020, the District recognized a pension expense of $7,708,008 for
PSRS and $1,028,366 for PEERS, its proportionate share of the total pension expense.
- 50 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2020
NOTE G – RETIREMENT PLANS - CONTINUED
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to Pensions - Continued
At June 30, 2020, the District reported deferred outflows of resources from the following sources
related to PSRS and PEERS pension benefits:
Deferred outflows of resources
PSRS
PEERS
District Total
Balance of deferred outflows due to:
Differences between expected and actual
experience
$
1,318,343
$
-
$
1,318,343
Changes in assumptions
5,768,551
247,007
6,015,558
Net difference between projected and actual
earnings on pension plan investments
(779,975)
(87,769)
(867,744)
Changes in proportion and differences
between District contributions and
proportionate share of contributions
685,318
-
685,318
Employer contributions subsequent to the
measurement date
3,997,277
592,417
4,589,694
Total
$ 10,989,514
$
751,655
$ 11,741,169
At June 30, 2020 the District reported deferred inflows of resources from the following sources
related to PSRS and PEERS pension benefits:
Deferred inflows of resources
PSRS
PEERS
District Total
Balance of deferred inflows due to:
$
2,945,781
$
82,851
$
3,028,632
Differences between expected and actual
experience
Changes in proportion and differences
between District contributions and
proportionate share of contributions
54,538
46,500
101,038
Total
$
3,000,319
$
129,351
$
3,129,670
- 51 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2020
NOTE G – RETIREMENT PLANS - CONTINUED
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to Pensions - Continued
Amounts reported as deferred outflows of resources resulting from contributions subsequent to the
measurement date of June 30, 2019, will be recognized as a reduction to the net pension liability
in the year ended June 30, 2021.
Other amounts reported as collective deferred (inflows)/outflows of resources are to be recognized
in pension expense as follows:
Year ending June 30,
PSRS
PEERS
District
Total
2021
$
2,431,127
$
201,050
$
2,632,177
2022
(282,740)
(182,543)
(465,283)
2023
1,342,488
(23,824)
1,318,664
2024
769,799
35,204
805,003
2025
(268,756)
-
(268,756)
$
3,991,918
$
29,887
$
4,021,805
Actuarial Assumptions
Actuarial valuations of the Systems involve assumptions about probability of occurrence of events
far into the future in order to estimate the reported amounts. Examples include assumptions about
future employment, salary increases, and mortality. Amounts determined regarding the net pension
liability are subject to continual revision as actual results are compared with past expectations and
new estimates are made about the future. The Board of Trustees of the Systems adopts actuarial
assumptions, each of which individually represents a reasonable long-term estimate of anticipated
experience for the Systems, derived from experience studies conducted every fifth year and from
the Systems' policies concerning investments and COLAs. The most recent comprehensive
experience studies were completed in June 2016. All economic and demographic assumptions
were reviewed and updated, where appropriate, based on the results of the studies and effective
with the June 30, 2016 valuation. For the June 30, 2017 valuations, the investment rate of return
was reduced from 7.75% to 7.60% and the assumption for the annual COLA was updated in
accordance with the funding policies amended by the Board of Trustees of the Systems at their
November 2017 meeting. For the June 30, 2018 valuation, the investment rate of return
assumption was further reduced from 7.60% to 7.50%. No additional assumption changes have
occurred. Significant actuarial assumption and methods are detailed below. For additional
information please refer to the Systems’ Comprehensive Annual Financial Report (CAFR). The
next experience studies are scheduled for 2021.
- 52 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2020
NOTE G – RETIREMENT PLANS - CONTINUED
Actuarial Assumptions - Continued
Significant actuarial assumptions and other inputs used to measure the total pension liability:
Measurement Date: June 30, 2019
Valuation Date: June 30, 2019
Expected Return on Investments: 7.50%, net of investment expenses and including 2.25%
inflation
Inflation: 2.25%
Total Payroll Growth PSRS: 2.75% per annum, consisting of 2.25% inflation, 0.25% real wage
growth due to the inclusion of active health care costs in pensionable earnings, and 0.25% of real
wage growth due to productivity.
Total Payroll Growth PEERS: 3.25% per annum, consisting of 2.25% inflation, 0.50% real wage
growth due to the inclusion of active health care costs in pensionable earnings, and 0.50% of real
wage growth due to productivity.
Future Salary Increases PSRS: 3.00% - 9.50%, depending on service and including 2.25%
inflation, 0.25% real wage growth due to the inclusion of active health care costs in pensionable
earnings, and 0.25% of real wage growth due to productivity.
Future Salary Increases PEERS: 4.00% - 11.00%, depending on service and including 2.25%
inflation, 0.50% real wage growth due to the inclusion of active health care costs in pensionable
earnings, and 0.50% of real wage growth due to productivity.
Cost of Living Increases PSRS & PEERS: The annual COLA assumed in the valuation increases
from 1.30% to 1.65% over seven years, beginning January 1, 2021. The COLA reflected for
January 1, 2020 is 0.00%, in accordance with the actual COLA approved by the Board of Trustees
of the Systems. This COLA assumption reflects an assumption that general inflation will increase
from 1.90% to a normative inflation assumption of 2.25% over seven years. It is also based on the
current policy of the Board of Trustees of the Systems to grant a COLA on each January 1 as
follows:
If the June to June change in the CPI-U is less than 2% for consecutive one-year periods, a
COLA increase of 2% will be granted when the cumulative increase is equal to or greater than
2%, at which point the cumulative increase in the CPI-U will be reset to zero. For the
following year, the starting CPI-U will be based on the June value immediately preceding the
January 1 at which the 2% cost-of-living increase is granted.
- 53 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2020
NOTE G – RETIREMENT PLANS - CONTINUED
If the June to June change in the CPI-U is greater than or equal to 2%, but less than 5%, a
COLA increase of 2% will be granted.
If the June to June change in the CPI-U is greater than or equal to 5%, a COLA increase of 5%
will be granted.
If the CPI decreases, no COLA is provided.
The COLA applies to service retirements and beneficiary annuities. The COLA does not apply to
the benefits for in-service death payable to spouses (where the spouse is over age 60), and does not
apply to the spouse with children pre-retirement death benefit, the dependent children pre-
retirement death benefit, or the dependent parent death benefit. The total lifetime COLA cannot
exceed 80% of the original benefit. PSRS members receive a COLA on the second January after
retirement, while PEERS members receive a COLA on the fourth January after retirement.
Mortality Assumptions
Actives PSRS: RP 2006 White Collar Employee Mortality Table, multiplied by an
adjustment factor of 0.75 at all ages for both males and females, with static projection
using the 2014 SSA Improvement Scale to 2028.
Actives PEERS: RP 2006 Total Dataset Employee Mortality Table, multiplied by an
adjustment factor of 0.75 at all ages for both males and females, with static projection
using the 2014 SSA Improvement Scale to 2028.
Non-Disabled Retirees, Beneficiaries, and Survivors PSRS: RP 2006 White Collar
Mortality Tables with plan-specific experience adjustments and static projection to
2028 using the 2014 SSA Improvement Scale.
Non-Disabled Retirees, Beneficiaries, and Survivors PEERS: RP 2006 Total Dataset
Mortality Table with plan-specific experience adjustments and static projection to 2028
using the 2014 SSA Improvement Scale.
Disabled Retirees PSRS & PEERS: RP 2006 Disabled Retiree Mortality Tables with
static projection to 2028 using the 2014 SSA Improvement Scale.
Changes in Actuarial Assumptions and Methods
There have been no assumption changes since the June 30, 2018 valuations.
- 54 -
Actuarial Assumptions - Continued
SCHOOL DISTRICT OF CLAYTON
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2020
NOTE G –RETIREMENT PLANS - CONTINUED
Actuarial Assumptions - Continued
Fiduciary Net Position: The Systems issue a publicly available financial report (CAFR) that can
be obtained at www.psrs-peers.org.
Expected Rate of Return
The long-term expected rate of return on investments was determined in accordance with
Actuarial Standard of Practice (ASOP) No. 27, Selection of Economic Assumptions for Measuring
Pension Obligations. ASOP No. 27 provides guidance on the selection of an appropriate assumed
rate of return. The long-term expected rate of return on the Systems’ investments was determined
using a building-block method in which best-estimate ranges of expected future real rates of
returns (expected returns, net of investment expense and inflation) are developed for each major
asset class. These ranges are combined to produce the long-term expected rate of return by
weighting the expected future real rates of return by the target asset allocation percentage and by
adding expected inflation. Best estimates of arithmetic real rates of return for each major asset
class included in the Systems’ target allocation as of June 30, 2019 are summarized below along
with the long term geometric return. Geometric return (also referred to as the time weighted
return) is considered standard practice within the investment management industry. Geometric
returns represent the compounded rate of growth of a portfolio. The method eliminates the effects
created by cash flows.
- 55 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2020
NOTE G – RETIREMENT PLANS - CONTINUED
Actuarial Assumptions - Continued
Asset class
Target asset
allocation
Long-term expected
real return
arithmetic basis
Weighted long-term
expected real return
arithmetic basis
U.S. Public Equity
%
27.00
%
5.16
%
1.39
Public Credit
7.00
2.17
0.15
Hedged Assets
6.00
4.42
0.27
Non-U.S. Public Equity
15.00
6.01
0.90
U.S. Treasuries
16.00
0.96
0.15
U.S. TIPS
4.00
0.80
0.03
Private Credit
4.00
5.60
0.22
Private Equity
12.00
9.86
1.18
Private Real Estate
9.00
3.56
0.32
Total
%
100.00
4.61
Inflation
2.25
Long-term arithmetical
nominal return
6.86
Effect of covariance matrix
0.64
Long-term expected
geometric return
%
7.50
- 56 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2020
NOTE G – RETIREMENT PLANS - CONTINUED
Actuarial Assumptions - Continued
Discount Rate
The long-term expected rate of return used to measure the total pension liability was 7.50% as of
June 30, 2019, and is consistent with the long-term expected geometric return on plan
investments. The actuarial assumed rate of return was 8.00% from 1980 through fiscal year 2016.
The Board of Trustees of the Systems adopted a new actuarial rate of return of 7.75% effective
with the June 30, 2016 valuation based on the actuarial experience studies and asset-liability study
conducted during the 2016 fiscal year. As previously discussed, the Board of Trustees of the
Systems further reduced the assumed rate of return to 7.6% effective with the June 30, 2017
valuation, and to 7.60% effective with the June 30, 2018 valuation. The projection of cash flows
used to determine the discount rate assumed that employer contributions would be made at the
actuarial calculated rate computed in accordance with assumptions and methods stated in the
funding policy adopted by the Board of Trustees of the Systems, which requires payment of the
normal cost and amortization of the unfunded actuarially accrued liability in level percent of
employee payroll installments over 30 years utilizing a closed period, layered approach. Based on
this assumption, the pension plan's fiduciary net position was projected to be available to make all
projected future benefit payments of current plan members.
Discount Rate Sensitivity
The sensitivity of the District's net pension liabilities to changes in the discount rate is presented
below. The District's net pension liabilities calculated using the discount rate of 7.50% is
presented as well as the net pension liabilities using a discount rate that is 1.0% lower (6.50%) or
1.0% higher (8.50%) than the current rate.
1% decrease
(6.50%)
Current rate
(7.50%)
1% increase
(8.50%)
PSRS
Proportionate share of the net
pension liability / (asset) $ 74,042,400 $ 40,701,088 $ 12,987,653
PEERS
Proportionate share of the net
pension liability / (asset)
7,422,931
3,908,930
961,555
- 57 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2020
NOTE H – DEFERRED COMPENSATION PLANS
The District offers its employees a choice of deferred compensation plans created in accordance
with Internal Revenue Code Sections 403(b) or 457. These plans, available to all District
employees, permit them to defer a portion of their salary until future years. The District makes
these plans available to its employees as an accommodation only. The District’s role in connection
with the plans is generally limited to processing the paperwork necessary to remit the participant’s
salary withholdings (deferrals) to the unrelated financial institution.
NOTE I – OTHER POSTEMPLOYMENT BENEFITS (OPEB)
Plan Description and Benefits Provided
In addition to providing the pension benefits described above, the District provides continuation of
medical, dental, and vision insurance coverage, including prescription drugs, to employees who are
eligible for normal or early retirement under PSRS or PEERS. Retirees and their dependents that
elect to participate must pay the premium in effect for the current plan year or any subsequent year
at the premium rates in effect at that time. Since retirees pay the premium for each year, the
District's share of any premium cost is determined on the basis of a blended rate or implicit rate
subsidy calculation. The plan is not accounted for as a trust fund since an irrevocable trust has not
been established. A stand-alone financial report is not available for the plan. No assets are
accumulated in a trust that meets all of the criteria in GASB Statement No. 75, paragraph 4.
Actuarial analysis completed on employees covered by benefit terms at June 30, 2020:
Number
Average Age
Actives
451
46.4
Retired and beneficiaries
190
71.2
Total
641
Contributions
The District currently pays for the implicit rate subsidy associated with these postemployment
health care benefits on a pay-as-you-go basis. The District determines contribution requirements
and they may be amended by the District.
- 58 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2020
NOTE I – OTHER POSTEMPLOYMENT BENEFITS (OPEB) - CONTINUED
Total OPEB Liability
The District’s total OPEB liability of $5,109,453 was measured as of June 30, 2020, and the total
liability used to calculate the total OPEB was determined by an actuarial valuation as of June 30,
2020.
Actuarial Cost Method: Entry age normal
Inflation: 2.30%
Salary Increases: 3.00%
Discount Rate: 2.21% based on the 20 year Bond GO Index at June 30, 2020. The rate for the
prior year was 3.50%.
Healthcare Cost Trend Rates: 6.00% for 2020, gradually decreasing to an ultimate rate of 3.70%
for 2073 and beyond.
Participation: It is assumed that 40% of employees who retire prior to age 65 will elect medical
and dental coverage upon retirement.
Mortality: Pub-2010 Teachers Mortality for Employees and Healthy Annuitants, with
generational projection per Scale MP-2019.
Changes in Total OPEB Liability
The components of the total OPEB liability of the District at June 30, 2020 are as follows:
Total OPEB
Liability
Balances as of June 30, 2019
$
5,765,488
Service cost
216,081
Interest on total OPEB liability
205,795
Economic/demographic gains/losses
(1,530,458)
Changes in assumptions
657,732
Benefit payments
(205,185)
Balances as of June 30, 2020
$
5,109,453
- 59 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2020
NOTE I – OTHER POSTEMPLOYMENT BENEFITS (OPEB) - CONTINUED
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate
The following presents the total OPEB liability of the District, as well as what the District’s total
OPEB liability would be if it were calculated using a discount rate that is 1 percentage point lower
and 1 percentage point higher than the current discount rate.
1% decrease
(1.21%)
Discount rate
(2.21%)
1% increase
(3.21%)
Total OPEB liability
$
5,724,719
$
5,109,453
$
4,588,111
Sensitivity of the Total OPEB Liability to Changes in the Health Care Cost Trends
The following presents the total OPEB liability of the District, calculated using the current
healthcare cost trend rates as well as what the District’s total OPEB liability would be if it were
calculated using trend rates that are 1 percentage point lower or 1 percentage point higher than the
current trend rates.
1% decrease
Current Trend
Rate
1% increase
Total OPEB liability
$
4,478,016
$
5,109,453
$
5,881,327
- 60 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2020
NOTE I – OTHER POSTEMPLOYMENT BENEFITS (OPEB) - CONTINUED
OPEB Expense and Deferred Outflows and Inflows of Resources Related to OPEB
For the year ended June 30, 2020, the District recognized OPEB expense of $311,003 and deferred
inflows of $1,421,283 related to the changes in assumptions, and deferred outflows of $724,971
related to changes in assumptions.
Amounts currently reported as deferred outflows and inflows of resources related to other
postemployment benefits will be recognized in OPEB expense as follows:
Year ending June 30
Net Outflow
of Resources
2021
$
(110,873)
2022
(110,873)
2023
(110,873)
2024
(110,873)
2025
(101,504)
Thereafter *
(151,316)
Total
$
(696,312)
* Note that additional future deferred inflows and outflows of resources may impact these
numbers.
NOTE J – COMMITMENTS AND CONTINGENCIES
Grant Audits
The District receives federal grants and state funding for specific purposes that are subject to
review and audit. These reviews and audits could lead to requests for reimbursement or to
withholding of future funding for expenditures disallowed under, or other noncompliance with,
the terms of the grants and funding. The District is not aware of any noncompliance with federal
or state provisions that might require the District to provide reimbursement.
- 61 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2020
NOTE J – COMMITMENTS AND CONTINGENCIES - CONTINUED
Protested Taxes
Each year St. Louis County remits certain unresolved protested tax payments to the District. When
St. Louis County refunds tax payments to those who are successful in their protests, it withholds
the refunded amount from future distributions to taxing districts. Normal withholdings by St.
Louis County are not material in relation to the District’s financial position and results of
operations.
COVID-19
In December 2019, a novel strain of coronavirus (COVID-19), was reported in Wuhan, China. The
World Health Organization has declared the COVID-19 outbreak to constitute a "Public Health
Emergency of International Concern." The extent of the impact of COVID-19 on the District's
operational and financial performance will depend on certain developments, including the duration
and spread of the outbreak, impact on our students, employees and vendors all of which are
uncertain and cannot be determined at this time.
NOTE K – JOINT VENTURE
The Clayton Recreation, Sports and Wellness Commission, Inc. (the Commission) is a not-for-
profit organization which provides a shared use facility to address the athletic and educational
needs of the community. The Commission is comprised of two trustees appointed by the District,
two trustees appointed by the City of Clayton, and two at-large representatives. The construction
of the project was funded by $5,500,000 of general obligation bonds issued by the District and
$11,500,000 of bonds issued by the City of Clayton
The District and the City of Clayton are each responsible for funding one-half of any operational
short-fall of the Commission. The Commission is closely monitoring the status of COVID-19 and
is regularly reassessing plans and procedures for the future. The extent to which COVID-19 will
impact future revenues and the Commission remains highly uncertain and cannot be predicted at
this time. The Board must approve the Commission’s budget.
In June 2019 the Commission began a $10.0 million renovation and improvement project which
will be funded equally by the District and the City of Clayton. The District entered into a capital
lease on June 1, 2019 to fund approximately $4.5 million of the project. The remaining $500,000
of the District's portion of the project will be funded from the capital project fund.
As of June 30, 2020 the Commission owed the District $114,280 for miscellaneous purchases,
shared utilities, and maintenance salaries. Complete financial statements for the Commission can
be obtained from the Commission’s administrative office.
- 62 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2020
NOTE L – RISK MANAGEMENT
1. District's Health Insurance Plan
The District utilities an internal service fund to account for the risks associated with the
employees’ health insurance plan. A premium is charged to each fund that accounts for
employees’ salaries based upon past trends in claims experience. Provisions are also made for
unexpected and unusual claims.
Liabilities of the fund are recorded when it is probable that a loss has occurred and the amount of
the loss can be reasonably estimated. Liabilities include an amount for claims that have been
incurred but not reported.
The District incurred claims of $3,465,382 of which $3,265,787 was paid and $199,595 was
unpaid.
The District purchases reinsurance to limit exposure to catastrophic claims. Specific stop loss limit
insurance is purchased which limits the District’s calendar year exposure to $125,000 per member.
2. District's Other Risk
The District is exposed to various risks of loss related to torts; theft of, damage to and destruction
of assets; errors and omissions; injuries to employees and natural disasters. To mitigate these risks,
the District is a participant in the Missouri United School Insurance Council (MUSIC) which is a
Protected Self-Insurance Program of Missouri Public School Districts with approximately 400
members. The District pays an assessment to MUSIC to cover estimated claims payable and
reserves for claims for each entity. Part of the assessment then goes to purchase excess insurance
contracts for the group as a whole. Should the contributions received by MUSIC not be sufficient,
special assessments can be made to the member districts. There have been no significant changes
in insurance coverage from the prior year.
- 63 -
REQUIRED SUPPLEMENTARY INFORMATION
SCHOOL DISTRICT OF CLAYTON
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL -
CASH BASIS - GENERAL FUND - UNAUDITED
Year ended June 30, 2020
Budgeted amounts
Variances -
positive (negative)
Original
Final
Actual
(budgetary
basis)
Original
to final
Final
to actual
Revenues
Local
$ 19,194,740 $ 21,272,760 $ 21,830,042 $
2,078,020 $
557,282
County
115,000
123,380
123,380
8,380
-
State
228,090
246,610
298,576
18,520
51,966
Federal
320,120
436,820
318,606
116,700
(118,214)
Other
4,000
4,000
11,173
-
7,173
Total revenues
19,861,950
22,083,570
22,581,777
2,221,620
498,207
Expenditures
Instruction
2,999,270
2,922,890
2,267,824
76,380
655,066
Attendance and guidance
789,590
796,570
721,902
(6,980)
74,668
Health services
461,550
593,100
479,137
(131,550)
113,963
Improvement of instruction
and professional
development
541,720
520,150
293,758
21,570
226,392
Media services
398,500
399,720
353,846
(1,220)
45,874
Board of Education services
209,370
222,820
224,451
(13,450)
(1,631)
Executive administration
1,572,960
1,571,560
1,498,528
1,400
73,032
Building level
administration
1,108,750
1,106,020
1,083,147
2,730
22,873
Operation of plant
7,697,330
7,875,260
7,407,529
(177,930)
467,731
Security services
238,770
238,770
171,295
-
67,475
Nonallowable transportation
223,250
217,390
195,273
5,860
22,117
Food services
1,203,280
1,203,280
883,025
-
320,255
Business services
1,036,160
1,008,580
933,871
27,580
74,709
Central office support
services
452,670
469,800
401,644
(17,130)
68,156
Adult/community programs
1,063,920
1,078,730
1,137,983
(14,810)
(59,253)
Total expenditures
19,997,090
20,224,640
18,053,213
(227,550)
2,171,427
Revenues over
(under)
expenditures
$
(135,140) $
1,858,930 $
4,528,564 $
1,994,070 $
2,669,634
The accompnaying notes are an integral part of this statement.
- 65 -
SCHOOL DISTRICT OF CLAYTON
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL -
CASH BASIS - SPECIAL REVENUE FUND - UNAUDITED
Year ended June 30, 2020
Budgeted amounts
Variances -
positive (negative)
Original
Final
Actual
(budgetary
basis)
Original
to final
Final
to actual
Revenues
Local
$34,210,270 $36,004,380 $37,159,405 $ 1,794,110 $ 1,155,025
County
247,000
281,770
281,774
34,770
4
State
1,405,960
1,429,440
1,417,715
23,480
(11,725)
Federal
142,090
123,980
122,782
(18,110)
(1,198)
Other
165,620
140,140
120,485
(25,480)
(19,655)
Total revenues
36,170,940
37,979,710
39,102,161
1,808,770
1,122,451
Expenditures
Instruction
28,233,790
27,871,190
27,041,280
362,600
829,910
Attendance and guidance
1,324,410
1,324,410
1,346,623
-
(22,213)
Health services
124,680
124,680
158,637
-
(33,957)
Improvement of instruction and
professional development
627,200
1,002,140
970,505
(374,940)
31,635
Media services
587,790
587,790
588,093
-
(303)
Executive administration
1,048,950
1,048,950
1,050,968
-
(2,018)
Building level administration
1,569,410
1,569,410
1,594,989
-
(25,579)
Business services
90,000
80,540
-
9,460
80,540
Central office support services
5,800
5,800
-
-
5,800
Adult/community programs
3,480
3,480
3,600
-
(120)
33,615,510
33,618,390
32,754,695
(2,880)
863,695
Total expenditures
Revenues over
expenditures
$ 2,555,430 $ 4,361,320 $ 6,347,466 $ 1,805,890 $ 1,986,146
The accompnaying notes are an integral part of this statement.
- 66 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
June 30, 2020
NOTE A – BUDGETS AND BUDGETARY ACCOUNTING
The District follows these procedures in establishing the budgetary data reflected in the financial
statements:
In accordance with Chapter 67, RSMo, the District adopts a budget for each fund.
Prior to July, the Superintendent, who serves as the budget officer, submits to the Board a
proposed budget for the fiscal year beginning on the following July 1. The proposed budget
includes estimated revenues and proposed expenditures for all District funds. Budgeted
expenditures cannot exceed beginning available monies plus estimated revenues for the year.
A public hearing is conducted to obtain taxpayer comments. Prior to its approval by the Board,
the budget document is available for public inspection.
Prior to July 1, the budget is legally enacted by a vote of the Board.
Subsequent to its formal approval of the budget, the Board has the authority to make necessary
adjustments to the budget by formal vote of the Board. For each fund, total fund expenditures
may not legally exceed final amended budgeted expenditures. Expenditure appropriations lapse
at the end of the fiscal year.
Budgeted amounts are as originally adopted on June 5, 2019, or as amended by the Board at
various times during the year.
Budgets are adopted on the cash basis of accounting for all governmental funds. The cash basis
is used to enable the District to more accurately budget revenue and expenses as the resources
are expended or received.
- 67 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
June 30, 2020
NOTE A – BUDGETS AND BUDGETARY ACCOUNTING - CONTINUED
The following schedule reconciles the revenue and expenditures on the budgetary basis of accounting
(cash basis) with the amounts presented under the modified accrual basis of accounting:
General Fund
Special
Revenue
Fund
Revenues
Revenues - cash basis
$
22,581,777
$
39,102,161
Current year revenue accruals
319,356
200,282
Prior year revenue accruals
(326,058)
(174,792)
Revenues - modified accrual basis
$
22,575,075
$
39,127,651
Expenditures
Expenditures - cash basis
$
18,053,213
$
32,754,695
Current year expenditure accruals
44,292
23,650
Prior year expenditure accruals
(129,258)
(109,063)
Expenditures - modified accrual basis
$
17,968,247
$
32,669,282
- 68 -
SCHOOL DISTRICT OF CLAYTON
NET PENSION LIABILITY - UNAUDITED
Year ended June 30, 2020
Schedule of Proportionate Share of the Net Pension Liability and Related Ratios – PSRS
Year ended*
Proportion of the
Net Pension
Liability (Asset)
Proportionate
share
of the Net Pension
Liability (Asset)
Actual
member
payroll
Net Pension
Liability (Asset)
as a percentage
of covered
payroll
Fiduciary Net
Position as a
percentage of
total
pension liability
6/30/2014
%
0.5208
$
21,366,213
$
23,616,628
%
90.47
%
89.34
6/30/2015
%
0.5256
30,342,153
24,305,850
%
124.83
%
85.78
6/30/2016
%
0.5421
40,335,757
25,587,013
%
157.64
%
82.18
6/30/2017
%
0.5510
39,790,604
26,583,036
%
149.68
%
83.77
6/30/2018
%
0.5512
41,022,820
27,049,379
%
151.00
%
84.06
6/30/2019
%
0.5515
40,701,088
27,606,008
%
147.44
%
84.62
Schedule of Proportionate Share of the Net Pension Liability and Related Ratios – PEERS
Year ended*
Proportion of the
Net Pension
Liability (Asset)
Proportionate
share
of the Net Pension
Liability (Asset)
Actual
member
payroll
Net Pension
Liability (Asset)
as a percentage
of covered
payroll
Fiduciary Net
Position as a
percentage of
total
pension liability
6/30/2014
%
0.5233
$
1,910,913
$
7,630,413
%
25.04
%
91.33
6/30/2015
%
0.5044
2,667,803
7,563,393
%
35.27
%
88.28
6/30/2016
%
0.5122
4,109,561
7,908,987
%
51.96
%
83.32
6/30/2017
%
0.5064
3,863,583
8,137,380
%
47.48
%
85.35
6/30/2018
%
0.4976
3,844,992
8,279,018
%
46.44
%
86.06
6/30/2019
%
0.4942
3,908,930
8,571,837
%
45.60
%
86.38
- 69 -
SCHOOL DISTRICT OF CLAYTON
NET PENSION LIABILITY - UNAUDITED
Year ended June 30, 2020
Schedule of Employer Contributions - PSRS
Year ended
Contractually
required
contribution
Actual
employer
contributions
Contributions
excess /
(deficiency)
Covered
payroll
Contributions as
a percentage of
covered payroll
6/30/2013
$
3,360,070
$
3,360,070
$
-
$
23,695,943
%
14.18
6/30/2014
3,353,834
3,353,834
-
23,616,628
%
14.20
6/30/2015
3,450,675
3,450,675
24,305,850
%
14.21
6/30/2016
3,631,138
3,631,138
-
25,587,013
%
14.19
6/30/2017
3,768,984
3,768,984
-
26,583,036
%
14.18
6/30/2018
3,843,008
3,843,008
-
27,049,379
%
14.21
6/30/2019
3,925,649
3,925,649
-
27,606,008
%
14.22
6/30/2020
3,997,277
3,997,277
-
28,149,838
%
14.20
Schedule of Employer Contributions - PEERS
Year ended
Contractually
required
contribution
Actual
employer
contributions
Contributions
excess /
(deficiency)
Covered
payroll
Contributions as
a percentage of
covered payroll
6/30/2013
$
535,396
$
535,396
$
-
$
7,805,015
%
6.86
6/30/2014
523,447
523,447
-
7,630,413
%
6.86
6/30/2015
518,849
518,849
-
7,563,393
%
6.86
6/30/2016
542,557
542,557
-
7,908,987
%
6.86
6/30/2017
558,224
558,224
-
8,137,380
%
6.86
6/30/2018
567,941
567,941
-
8,279,018
%
6.86
6/30/2019
588,545
588,545
-
8,571,837
%
6.87
6/30/2020
592,417
592,417
-
8,635,816
%
6.86
Note: These schedules are intended to show information for ten years. Additional years will be displayed
as they become available.
*The data provided in the schedules is based as of the measurement date of the System's net pension
liability, which is as of the beginning of the District's fiscal year.
- 70 -
-
SCHOOL DISTRICT OF CLAYTON
SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS -
UNAUDITED
Year ended June 30, 2020
2020
2019
2018
Total OPEB liability
Service Cost
$
216,081
$
264,514
$
270,318
Interest on total OPEB liability
205,795
213,641
199,304
Effect of liability gains or losses
(1,530,458)
-
-
Changes in assumptions
657,732
211,954
(160,959)
Benefit payments
(205,185)
(357,661)
(341,928)
Net change in total OPEB liability
(656,035)
332,448
(33,265)
Total OPEB liability at beginning of year
5,765,488
5,433,040
5,466,305
Total OPEB liability at end of
year
$ 5,109,453 $ 5,765,488
$ 5,433,040
Covered Payroll
$ 32,481,736
$ 32,341,024
$ 31,688,037
Total OPEB liability as a percentage of
covered payroll
%
15.73
%
17.83
%
17.15
Note: This schedule is to present information for 10 years. Additional years will be presented as they
become available.
Plan Assets
No assets are accumulated in a trust that meets all of the following criteria of GASB Statement No. 75,
paragraph 4, to pay benefits:
Contributions from the employer and any nonemployer contributing entities, and earnings
thereon, must be irrevocable.
Plan assets must be dedicated to providing OPEB to plan members in accordance with the
benefit terms.
Plan assets must be legally protected from the creditors of the employer, nonemployer
contributing entities, the plan administrator, and plan members.
- 71 -
SUPPLEMENTARY INFORMATION
SCHOOL DISTRICT OF CLAYTON
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL -
CASH BASIS - DEBT SERVICE FUND - UNAUDITED
Year ended June 30, 2020
Budgeted amounts
Variances -
positive (negative)
Original
Final
Actual
(budgetary
basis)
Original
to final
Final
to actual
Revenues
Local
$
8,421,360 $
8,272,180 $
8,345,460 $
149,180 $
73,280
County
150,000
182,270
182,266
(32,270)
(4)
Federal
784,180
784,180
785,436
-
1,256
Total revenues
9,355,540
9,238,630
9,313,162
116,910
74,532
Expenditures
Debt service:
Principal retirements
4,935,000
4,935,000
4,935,000
-
-
Interest and other charges
2,894,650
3,356,510
3,353,389
461,860
3,121
Total expenditures
7,829,650
8,291,510
8,288,389
461,860
3,121
Other financing sources (uses)
Proceeds from refunded debt
-
31,075,000
31,075,000 (31,075,000)
-
Premium on refunded bonds
-
1,741,860
1,741,862
(1,741,860)
2
Payments to refunded bond escrow
agent
-
(32,475,000)
(32,475,000) (32,475,000)
-
Total other financing sources
(uses)
-
341,860
341,862
(341,860)
2
Revenues over (under)
expenditures
$
1,525,890 $
1,288,980 $
1,366,635 $ (686,810)$
77,655
Reconciliation of budgetary (cash)
basis of accounting to modified
accrual basis of accounting
Revenues per above - cash basis
$
9,313,162
Current year revenue accruals
11,754
Prior year revenue accruals
(7,322)
Revenues - modified accrual
basis
$
9,317,594
Expenditures per above - cash basis
$
8,288,389
Current year expenditure accruals
403
Prior year expenditure accruals
-
Expenditures - modified
accrual basis
$
8,288,792
- 73 -
SCHOOL DISTRICT OF CLAYTON
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL -
CASH BASIS - CAPITAL PROJECTS FUND - UNAUDITED
Year ended June 30, 2020
Budgeted amounts
Variances -
positive (negative)
Original
Final
Actual
(budgetary
basis)
Original
to final
Final
to actual
Revenues
Local
$
2,567,120 $
2,590,030 $
3,251,726 $
(22,910)$
661,696
County
20,000
23,580
23,577
(3,580)
(3)
Other
25,000
25,000
5,378
-
(19,622)
Total revenues
2,612,120
2,638,610
3,280,681
(26,490)
642,071
Expenditures
Instruction
270,050
649,550
478,517
379,500
171,033
Attendance and guidance
750
-
-
(750)
-
Health services
-
1,250
-
1,250
1,250
Media services
-
1,310
1,309
1,310
1
Board of Education services
-
4,500
4,528
4,500
(28)
Executive administration
486,240
548,040
40,964
61,800
507,076
Building level administration
-
7,580
-
7,580
7,580
Operation of plant
765,280
1,719,720
699,934
954,440
1,019,786
Security services
3,000
82,000
76,900
79,000
5,100
Food services
14,000
14,000
-
-
14,000
Business services
32,500
16,350
-
(16,150)
16,350
Central office support services
500
1,530
1,574
1,030
(44)
Adult/community programs
6,000
6,000
1,968
-
4,032
Facilities acquisition and construction
575,000
2,836,280
2,404,926
2,261,280
431,354
Debt service:
Principal retirements
-
285,200
285,197
285,200
3
Interest and other charges
-
83,060
83,043
83,060
17
Total expenditures
2,153,320
6,256,370
4,078,860
4,103,050
2,177,510
Revenues over (under) expenditures
$
458,800 $
(3,617,760) $
(798,179) $ 4,076,560 $(2,819,581)
Reconciliation of budgetary (cash) basis to
modified accrual basis of accounting
Revenues per above - cash basis
$
3,280,681
Current year revenue accruals
(524,698)
Prior year revenue accruals
(1,301)
Revenues - modified accrual basis
$
2,754,682
Expenditures per above - cash basis
$
4,078,860
Current year expenditure accruals
4,698,397
Prior year expenditure accruals
342,930
Expenditures - modified accrual basis
$
9,120,187
- 74 -
ANNUAL FINANCIAL INFORMATION AND OPERATING DATA Unaudited
SCHOOL DISTRICT OF CLAYTON
ANNUAL FINANCIAL INFORMATION AND OPERATING DATA - UNAUDITED
Year ended June 30, 2020
The following information is included to meet certain disclosure compliance requirements related to
bonds issued by the District.
Bond Issuance Information
Name of Issuer:
School District of Clayton, St. Louis County, Missouri
Dates of Issuance:
Oct. 14, 2009; Nov. 3, 2009; Sept. 08, 2010; Sept. 28, 2010; Dec. 27, 2017; Dec. 5,
2019
Relating to CUSIP Nos.:
Series 2009A
Series 2009B
Series 2009C
Series 2010A
Series 2010B
Series 2010C
Series 2017
Series 2019
FG6
GC4
GY6
184270 HY5
184270 HZ2
184270 JM9
184270 JN7
184270 JV9
184270 KP0
184270 KY1
FH4
GD2
GZ3
184270 HU3
184270 JB3
184270 JP2
184270 JR8
184270 KQ8
184270 KZ8
FJ0
GE0
HA7
184270 HV1
184270 JC1
184270 JQ0
184270 JS6
184270 KR6
184270 LA2
FK7
GF7
HB5
184270 HW9
184270 JD9
184270 JT4
184270 KS4
184270 LB0
FL5
GG5
HC3
184270 HX7
184270 JE7
184270 JU1
184270 KT2
184270 LC8
FM3
GH3
HD1
184270 JF4
184270 JW7
184270 KU9
184270 LD6
FN1
GJ9
HE9
184270 JG2
184270 KV7
184270 LE4
FP6
GK6
HF6
184270 JH0
184270 KW5
184270 LF1
FQ4
GL4
HG4
184270 JJ6
184270 KX3
184270 LG9
FR2
GM2
HH2
184270 JK3
FS0
GN0
HJ8
184270 JL1
FT8
GP5
HK5
FU5
GQ3
HL3
FV3
GR1
HM1
FW1
GS9
HN9
FX9
GT7
HP4
FY7
GU4
HQ2
FZ4
GV2
HR0
GA8
GW0
HS8
GB6
GX8
HT6
- 76 -
SCHOOL DISTRICT OF CLAYTON
ANNUAL FINANCIAL INFORMATION AND OPERATING DATA - UNAUDITED
Year ended June 30, 2020
History of Enrollment
Listed below are the District's Fall enrollment figures for the last four and current school years:
Grade
15-16
16-17
17-18
18-19
19-20
K
162
178
168
153
139
1st
169
169
198
164
160
2nd
177
183
187
190
167
3rd
180
180
196
192
201
4th
193
198
188
188
177
5th
191
206
210
194
192
6th
216
205
221
219
200
7th
221
229
201
242
226
8th
211
219
235
210
251
9th
211
222
232
226
214
10th
221
210
222
237
223
11th
216
224
206
227
240
12th
222
214
217
210
229
Total
2,590
2,637
2,681
2,652
2,619
Sources of Revenue
The following table shows the allocation of the District's revenue from the various sources for the
fiscal year ended June 30, 2020:
Revenue Source
% of Total
Local Revenue
%
94.96
County Revenue
0.83
State Revenue
2.33
Federal Revenue
1.68
Other Revenue
0.20
Total
%
100.00
- 77 -
SCHOOL DISTRICT OF CLAYTON
ANNUAL FINANCIAL INFORMATION AND OPERATING DATA - UNAUDITED
Year ended June 30, 2020
Sources of Revenue by Fiscal Year
The following table shows the District's sources of revenues for the fiscal years shown
below:
Fiscal Year
Ended
June 30
Local
Revenue
County
Revenue
State
Revenue
Federal
Revenue
Other
Revenue
Total
Revenue
2016
$
51,592,838 $
549,601 $
1,689,504 $
1,699,830 $
6,394
$
55,538,167
2017
51,425,428
536,786
1,741,020
1,738,923
30,729
55,472,886
2018
54,455,608
559,302
1,729,439
1,673,247
31,264,065 a
89,681,661
2019
53,169,996
525,825
1,742,804
1,635,582
357,047 b
57,431,254
2020
70,058,342
610,998
1,716,291
1,237,578
32,968,655 c
106,591,869
a Includes proceeds from the sale of refunded bonds and from sale of land
b Includes statutory tuition revenue
c Includes proceeds from the sale of refunded bonds and statutory tuition revenue
Property Tax Information
The following table provides the history of total assessed valuation of all taxable tangible property
situated in the District, according to the assessments of January 1, in the calendar years shown below:
Calendar
Year
Assessed Valuation
%
Change
2015
1,037,313,560
N/A
2016
1,036,106,710
%
-0.12
2017
1,152,388,120
%
11.22
2018
1,136,240,380
%
-1.40
2019
1,309,893,760
%
15.28
- 78 -
SCHOOL DISTRICT OF CLAYTON
ANNUAL FINANCIAL INFORMATION AND OPERATING DATA - UNAUDITED
Year ended June 30, 2020
Tax Rates
The following table shows the adjusted tax rates (per $100 of assessed valuation) levied against each
subclass of property for the current fiscal year and the last three fiscal years for the District:
Fiscal Year
Ended
June 30
Real Estate
Residential
Real Estate
Commercial
Real Estate
Agricultural
Personal
Property
2017
$
3.8423 $
4.3583 $
-
$
3.9946
2018
3.6494
4.1682
-
3.9845
2019
3.6921
4.0670
-
3.9792
2020
4.1553
4.9562
-
4.5567
Tax Rates – Allocation by Fund
The following table shows the District’s adjusted tax levies (per $100 of assessed valuation) for each of
the following fiscal years:
Fiscal Year
Ended
June 30
General
(Incidental)
Fund
Special
Revenue
(Teachers')
Fund
Capital
Projects
(Building)
Fund
Debt
Service
Fund
Total Levy -
Blended
Rate
2016
$
1.2242 $
2.1186 $
0.1800 $
0.6230 $
4.1458
2017
0.9291
2.3057
0.2065
0.6230
4.0643
2018
0.9350
2.2278
0.1050
0.6230
3.8908
2019
1.0555
2.0770
0.1100
0.6230
3.8655
2020
1.2732
2.5030
0.1000
0.6230
4.4992
- 79 -
SCHOOL DISTRICT OF CLAYTON
ANNUAL FINANCIAL INFORMATION AND OPERATING DATA - UNAUDITED
Year ended June 30, 2020
Tax Collection Record
The following table sets forth tax collection information for the District for the last five fiscal years:
Total Levy
Current Taxes Collected
Current and Delinquent
Taxes Collected
Fiscal Year
(per $100 of
Assessed Value)
Assessed
Valuation
Total Taxes
Levied
Amount
%
Amount
%
2015-16
4.1458 $ 1,037,313,560
$ 43,004,946 $
42,039,622
%
-
$
39,737,985
%
-
2016-17
4.0643
1,036,106,710
42,110,485
41,028,612
%
97.43
40,202,268
%
95.47
2017-18
3.8908
1,036,106,710
40,312,840
43,801,052
%
108.65
43,078,099
%
106.86
2018-19
3.8655
1,036,106,710
40,050,705
43,046,572
%
107.48
42,500,328
%
106.12
2019-20
4.4992
1,309,893,760
58,934,740
57,882,064
%
98.21
58,517,417
%
99.29
Major Property Taxpayers
The ten largest real property taxpayers in the District according to their 2019 assessed valuations are listed
below:
Taxpayer
Assessed
Valuation
% of
District's
2019 Total
Assessed
Valuation
$
37,048,770
%
2.83
27,253,990
%
2.08
23,569,310
%
1.80
20,943,810
%
1.60
20,148,250
%
1.54
19,460,580
%
1.49
17,408,510
%
1.33
16,571,200
%
1.27
16,380,780
%
1.25
1.
City of Clayton
2.
LCP Forsyth Blvd Property Owner LLC
3.
Clayton Franklin Clayton Plaza LLC
4.
Prime US 101 South Hanley LLC
5.
BLR Properties LLC
6.
Clayton Corporate Park Management Co
7.
Saint Louis Galleria LLC
8.
Clayton Central Owner LLC
9.
Chapter 100 City of Clayton
10.
Mept Shaw Park Plaza LLC
14,510,910
%
1.11
213,296,110
%
16.30
- 80 -