finance 2018 2019 Audited Financial Report
FINANCIAL STATEMENTS
AND
INDEPENDENT AUDITORS' REPORT
SCHOOL DISTRICT OF CLAYTON
June 30, 2019
SCHOOL DISTRICT OF CLAYTON
TABLE OF CONTENTS
Independent Auditors' Report
Management's Discussion and Analysis - Unaudited
Basic Financial Statements
District-wide Financial Statements
Statement of Net Position
Statement of Activities
Fund Financial Statements
Balance Sheet - Governmental Funds
Reconciliation of the Governmental Funds Balance
Sheet with the District-Wide Statement of Net Position
Statement of Revenues, Expenditures and
Changes in Fund Balances - Governmental Funds
Reconciliation of the Governmental Funds Statement of
Revenues, Expenditures and Changes in Fund Balances
with the District-Wide Statement of Activities
Statement of Net Position - Proprietary Funds
Statement of Revenues, Expenses and Changes in
Net Position - Proprietary Funds
Statement of Cash Flows - Proprietary Funds
Notes to Financial Statements
Page
4
7
21
22
23
24
25
26
27
28
29
30
SCHOOL DISTRICT OF CLAYTON
TABLE OF CONTENTS
Required Supplementary Information - Unaudited
Schedule of Revenues, Expenditures and Changes in Fund Balances- Budget
and Actual - Cash Basis
General Fund
Special Revenue Fund
Notes to Required Supplementary Information
Net Pension Liability
Schedule of Changes in Total OPEB Liability
and Related Ratios
Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget
and Actual - Cash Basis
Debt Service Fund
Capital Projects Fund
Annual Financial Information and Operating Data - Unaudited
Page
63
64
65
67
69
71
72
74
Kerber, Eck & Braeckel LLP
Board of Education
School District of Clayton
Independent Auditors' Report
CPAs and
Management Consu ltants
One South Memorial Drive, Ste. 900
St. Louis, MO 63102
ph. 314.231 .6232
fax 314.880.9307
www.kebcpa.com
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, 2019, 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, 2019, 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 other 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 12,
2019, 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 oflaws, 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 12, 2019
SCHOOL DISTRICT OF CLAYTON ·
MANAGEMENT'S DISCUSSION AND ANALYSIS - UNAUDITED
Year ended June 30, 2019
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, 2019. 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, 2019 are as follows:
•
The total assets and deferred outflows of the District exceeded its liabilities and deferred
inflows at the end of the 2019 fiscal year by $15.3 million (net position).
•
Net position decreased approximately $1.6 million or 9.2% from the prior year.
•
General revenues totaled $52.5 minion or 82.1 % of all revenues. Program revenues in the
form of charges for services and operating grants and contributions accounted for $11.4 million
or 17. 9% of all revenues.
•
Total expenses for the year were $65.5 million of which $52.5 million were funded by general
revenues.
•
The General Fund had $18.0 million in revenues and $18.7 million in expenditures. The
General Fund's balance decreased $455 thousand after transfers.
•
The Special Revenue Fund had $29.2 million in revenues and $32.2 million in expenditures.
The Special Revenue Fund's balance decreased $3.0 million after transfers.
•
The Debt Service Fund had $8.6 million in revenues, $28.1 million in expenditures of which
$19.3 million was paid from escrow due to a prior year refunding. The Debt Service Fund's
balance decreased $19 .5 million primarily due to the bond payment from escrowed cash.
•
The Capital Projects Fund had $1.8 million in revenues, $5.1 million in proceeds from a capital
lease and $1.5 million in expenditures. The Capital Projects Fund's balance increased $5.3
million after transfers primarily due to proceeds received from the capital lease.
- 7 -
SCHOOL DISTRICT OF CLAYTON
MANAGEMENT'S DISCUSSION AND ANALYSIS - UNAUDITED
Year ended June 30, 2019
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.
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.
- 8 -
SCHOOL DISTRICT OF CLAYTON
MANAGEMENT'S DISCUSSION AND ANALYSIS - UNAUDITED
Year ended June 30, 2019
Reporting the District as a Whole - Continued
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.
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:
- 9 -
SCHOOL DISTRICT OF CLAYTON
MANAGEMENT'S DISCUSSION AND ANALYSIS - UNAUDITED
Year ended June 30, 2019
Reporting the District's Most Significant Funds - Continued
Governmental Funds - Most of the District's services are reported in governmental funds which
focus how money flows into and out of the funds and balances remaining at year-end 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 $15.3 million at June 30, 2019. Of this amount, $30.7 million was net
investment in capital assets and $15.3 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 $30.8 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 pension 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.
- 10 -
SCHOOL DISTRICT OF CLAYTON
MANAGEMENT'S DISCUSSION AND ANALYSIS - UNAUDITED
Year ended June 30, 2019
The District as a Whole - Continued
Table 1
Condensed Statements of Net Position
June 30,
2019
2018
Business-
Business-
Governmental
type
Governmental
type
activities
activities
Total
activities
activities
Total
Current and other assets
$ 88,541,937
$
30,302
$ 88,572,239
$ 92,117,800
$
21,120
$ 92,138,920
Capital assets
102,588,080
44,125
102,632,205
104,969,530
52,166
105,021,696
Total assets
191,130,017
74,427
191,204,444
197,087,330
73,286
197,160,616
Deferred pension and OPEB
15,470,256
15,470,256
15,923,346
15,923,346
Current and other liabilities
8,031,900
30,302
8,062,202
1,802,316
21,120
1,823,436
N oncurrent liabilities
122,758,180
122,758,180
147,352,171
147,352,171
Total liabilities
130, 790,080
30,302
130,820,382
149,154,487
21,120
149,175,607
Deferred property taxes
58,149,096
58,149,096
43,813,877
43,813,877
Pension and OPEB deferrals
2,396,317
2,396,317
3,226,530
3,226,530
Total deferred infloM
60,545,413
60,545,413
47,040,407
47,040,407
Net position
Net investment in
capital assets
30,674,271
44,125
30,718,396
28,367,834
52,166
28,420,000
Restricted
15,344,822
15,344,822
16,767,150
16,767,150
Unrestricted
(30,754,313)
(30,754,313)
(28,319,202)
(28,319,202)
Total net position
$ 15,264,780
$
44,125
$ 15,308,905
$ 16,815,782
$
52,166
$ 16,867,948
The ($30.8) million in unrestricted net position represents the accumulated results of all past years'
operations for unrestricted activities. Total net position decreased $1.6 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, 2019
The District as a Whole - Continued
Table 2
Changes in Net Position from Operating Results
Year Ended June 30,
2019
2018
Business-
Business-
Governmental
type
Governmental
type
activities
activities
Total
activities
activities
Total
Revenues
Program revenues
Charges for services
$ 8,834,939
$1,099,031
$ 9,933,970
$ 6,296,253
$1,016,281
$ 7,312,534
Operating grants and contributions
1,499,399
1,499,399
979,787
979,787
General revenues
Property taxes
42,443,840
42,443,840
43,418,624
43,418,624
Federal and State aid
2,352,559
2,352,559
2,307,828
2,307,828
Voluntary student transfer aid
1,568,157
1,568,157
1,710,403
1,710,403
Other
6,120,786
6,120,786
6,517,733
6,517,733
Total revenues
62,819,680
1,099,031
63,918,711
61,230,628
1,016,281
62,246,909
Expenses
Instruction
30,370,087
30,370,087
30,802,007
30,802,007
Student services
2,636,099
2,636,099
2,687,603
2,687,603
Sup port services
1,972,618
1,972,618
1,821,975
1,821,975
Building a~tration
2,726,093
2,726,093
2,632,606
2,632,606
Executive administration
3,044,210
3,044,210
1,355,902
1,355,902
Business services
931,787
931,787
769,976
769,976
Central office support services
5,335,592
5,335,592
3,789,050
3,789,050
Operation of plant
10,895,241
10,895,241
11,106,815
11,106,815
Security services
203,982
203,982
216,142
216,142
Nonallowable transportation
185,278
185,278
169,388
169,388
Food services
1,184,498
1,184,498
1,078,230
1,078,230
Adult/community programs
1,201,406
1,201,406
818,183
818,183
Interest and other charges
3,907,058
3,907,058
3,857,254
3,857,254
Local district services
883,805
883,805
903,463
903,463
Total expenses
64,593,949
883,805
65,477,754
61,105,131
903,463
62,008,594
Excess (deficiency) before other
(1,774,269)
215,226
(1,559,043)
125,497
112,818
238,315
income and transfers
Other income
Gain on sale of capital assets
3,819,699
3,819,699
Transfers
223,267
(223,267)
4,182,484
(4,182,484)
Total other income
223,267
(223,267)
4,182,484
(362,785)
3,819,699
Change in net position
(1,551,002)
(8,041)
(1,559,043)
4,307,981
(249,967)
4,058,014
Beginning net position
16,815,782
52,166
16,867,948
12,507,801
302,133
12,809,934
Ending net position
$ 15,264,780
$
44,125
$ 15,308,905
$ 16,815,782
$
52,166
$16,867,948
- 12 -
SCHOOL DISTRICT OF CLAYTON
MANAGEMENT'S DISCUSSION AND ANALYSIS - UNAUDITED
Year ended June 30, 2019
Governmental and Business-Type Activities
As reported in the Statement of Activities, the cost of all governmental and business-type activities
totaled $65.5 million in fiscal year 2019. However, the District's local taxpayers ultimately funded
$42.4 million or 64.8% of these costs because some of the costs were paid by those who benefited
from the programs ($9.9 million), by other governments and organizations who subsidized certain
programs ($3.1 million), and by miscellaneous sources ($8.5 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,
2019
2018
Total cost
Net cost
Total cost
Net cost
of services
of services
of services
of services
Governmental activities
Instruction
$ 30,370,087
$ 28,058,231
$ 30,802,007
$ 28,249,032
Student services
2,636,099
2,636,099
2,687,603
2,687,603
Support services
1,972,618
1,866,773
1,821,975
1,707,752
Administration
6,702,090
6,694,023
4,758,484
4,758,484
Operation of plant
11,099,223
10,014,300
11,322,957
11,322,957
Other
7,906,774
1,083,127
5,854,851
1,246,009
Interest and other charges
3,907,058
3,907,058
3,857,254
3,857,254
64,593,949
54,259,611
61,105,131
53,829,091
Business-type activities
Local district services
883,805
(215,226)
903,463
(112,818)
Total
$ 65,477,754
$ 54,044,385
$ 62,008,594
$ 53,716,273
- 13 -
SCHOOL DISTRICT OF CLAYTON
MANAGEMENT'S DISCUSSION AND ANALYSIS - UNAUDITED
Year ended June 30, 2019
Governmental and Business-Type Activities - Continued
Instruction expenses include activities directly dealing with 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.
Other includes services for transportation, food, communications, human resources and expenses for
the District's self-insurance fund.
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 92.4% of instruction activities are supported
through taxes and other general revenues; for all governmental activities, general revenue support is
84.0%.
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 $28.1 million at June 30, 2019. This represents an overall
decrease of $17 .6 million from the prior year primarily due the depletion of the escrow account in the
Debt Service Fund. The Debt Service escrow account paid $19.7 million of debt during the fiscal
year.
Additionally, the General Fund maintained a steady balance, the Special Revenue Fund
decreased by $3.0 million on planned expenditures and the Capital Projects Fund increased $5.3
million primarily from the proceeds of the capital lease. 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.
- 14 -
SCHOOL DISTRICT OF CLAYTON
MANAGEMENT'S DISCUSSION AND ANALYSIS - UNAUDITED
Year ended June 30, 2019
Operating Funds (General and Special Revenue Funds Combined) - Budgeting Highlights
In accordance with Chapter 67, RS Mo, 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.
The District's financial strength is derived primarily from its strong local property values as over
73.2% 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 2018-2019 property tax revenues decreased by approximately $578 thousand or 1.34%
less than the 2017-2018 totals primarily from a lower recoupment rate; current property taxes
decreased by approximately $755 thousand and delinquent property taxes increased by approximately
$177 thousand. The 2018 tax levy included a recoupment rate of 0.0468 for residential property and
0.0057 for commercial property. Legislation allows the District to assess a recoupment rate when the
assessed value of property is lowered through the appeal process after the tax rate has been set. 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 $405 thousand
below the original budget and approximately $3.1 million above the revised budget.
For the year ended June 30, 2019, the General Fund budgetary basis actual expenditures were
approximately $968 thousand less than final budgeted amounts. Expenditures were less in the area of
Operation of Plant by approximately $428 thousand due to lower expenses in utilities and due to the
timing of summer projects. Also, Instruction was less than budgeted by $264 thousand primarily as a
result of lower expenditures for textbooks.
The Special Revenue Fund budgetary basis actual expenditures reflect an overall positive variance of
approximately $900 thousand from the final budget primarily in the function of Instruction.
Expenditures were lower than budget in salaries and benefits partially due to the budgeting of certain
extra-duty positions to be filled by certified personnel. However, these positions may be filled by
either certified or non-certified personnel. A significant portion of these positions were filled by non-
certified personnel and therefore the expenditures occurred in the General Fund. Expenditures for
insurance and substitute costs were also below budget. For the year ended June 30, 2019, the combined
General and Special Revenue change in fund balances was approximately $1 . 7 million lower than the
2018-2019 original budget and $5.2 million lower than the 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, 2019
Capital Assets and Debt Administration
Capital Assets
At June 3 0, 2019, the District had capital assets with a net book value of $103 million, which includes
$46.8 million in accumulated depreciation. Table 4 shows a breakdown of capital assets, net of
accumulated depreciation, at year end.
Governmental
activities
Land
$
714,536
98,535,256
3,338,288
Buildings and improvements
Furniture and equipment
Table 4
Capital Assets - Net
June 30,
2019
Business-
type
activities
$
44,125
$
Total
714,536
98,535,256
3,382,413
Governmental
activities
$
714,536
100,977,864
3,277,130
2018
Business-
type
activities
$
52,166
Total
$
714,536
100,977,864
3,329,296
Total
$ 102,588,080
$ 44,125
$ 102,632,205
$ 104,969,530
$ 52,166
$ 105,021,696
The total additions for the year were $1.4 million which consisted of approximately $3 73 thousand of
building and improvements and $989 thousand 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.
Debt Administration
At June 30, 2019, the District had $69.1 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 $106 million at June 30, 2019, far
above the District's current level of debt. The District's Debt Service levy for 2018-2019 was $0.623
on each $100 of assessed valuation. The Debt Service Fund balance at June 30, 2019 was $5.0 million
and equal to nearly 84.32% of the fiscal year 2019 annual debt service expense. The District's bond
rating is AAA with Standard and Poor' s.
- 16 -
SCHOOL DISTRICT OF CLAYTON
MANAGEMENT'S DISCUSSION AND ANALYSIS - UNAUDITED
Year ended June 30, 2019
Capital Assets and Debt Administration - continued
Other long-term liabilities of the District include compensated absences and a capital leases for
renovation and improvement projects.
Additional information about debt is provided in Note E.
Economic Factors and Fiscal Year 2019-2020 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.
The strategic planning process used the District's mission, vision and core values as a guide to develop
strategic themes, objectives and initiatives. The 2019-2020 budget continues to focus on our strategic
themes of Academic Excellence, Teacher and Administrator Excellence, Growth and Development of
the Whole Child, and Resource Management. An effective learning organization continually takes
time to evaluate progress and respond to it. While our District's strategic plan serves as a guide for
where we are going, we also are purposeful about being reflective and making adjustments along the
way. The District began working throughout the 2018-2019 school year to develop a new strategic
plan, which will guide the District's work for the next three to five years. The first step in this process
is starting with the end in mind: our students. We are working to develop a "Profile of a Graduate"
that will prioritize the competencies we want for every Clayton graduate. 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. In the fall of 2018, we gathered input from the community through a platform called
ThoughtExchange. The data collected from this input has been used as a launching point for
developing our Profile of a Graduate. Once this work is finalized in the fall of 2019, a new strategic
plan will be developed.
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 percent of the
votes. The net effect of both measures will provide the District with an additional 64 cents of operating
revenue, or approximately $7 .3 million.
The additional revenue will be used to 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, 2019
Economic Factors and Fiscal Year 2019-2020 Budget - continued
Proposition E was placed on the ballot because the District was prudently spending down operating
reserves of $175,217 in 2009-2010, $820,654 in 2010-2011 and $2.0 million in 2011-2012. During
2012-2013 and 2013-2014, budget reductions of $935,900 and $1.2 million, respectively, were made
both to ensure the District's resources were allocated to programs that support its mission, vision and
core values as well as to secure the District's ability to continue to provide our students with a rich
and rigorous educational experience. The reductions were made with the goal of continuing to align
District resources with our priorities but also protect what matters most: our instructional core. An
academically-challenging curriculum, our students' engagement in their learning, and teachers'
knowledge and skills are the three interdependent components of this District. 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. As a result of these reductions and the ability to
recoup approximately $5.0 million of protested taxes over three years, operating surpluses of$560,973
in 2012-2013, $1.6 million in 2013-2014, and $2.6 million in 2014-2015 were reported. During fiscal
year 2015-2016 the District again began spending down reserves in the amount of$1.7 million due to
the payback of over $2.0 million in protested taxes; and 2016-2017 and 2017-2018 continued the trend
of spending down reserves with $2.4 million and $2.0 million respectively. The District continued to
spend down reserves in 2018-2019 at approximately $4.0 million. However, due to the successful
passing of Proposition E, for 2019-2020, the District is projected to have approximately a $2.9 million
operating surplus and grow the fund balance to approximately 24% which is 6 percent above the 18
percent fund balance goal.
Beginning in 2015-2016, instructional and departmental operating budgets were prepared through a
Zero-Based Budgeting (ZBB) approach. This approach is one of the key initiatives used to implement
the Resource Management theme in the District's Strategic Plan. 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 for the decisions
for where the District spends. The 2019-2020 budget was prepared using a ZBB approach.
Proposed 2019-2020 total expenditures including normal debt service payments and business-type
activities total $64.6 million. Projected total revenues, inclusive of business-type and debt service, of
$69 .1 million will result in a surplus $4.5 million and grow the overall fund balance to $22.3 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 increase by $12.0 million or 25.87 percent to a total of
$58.6 million primarily because of the successful passing of Proposition E, new developments, and
the recoupment of the payback of approximately $1.2 million of protested taxes from the prior year.
Protested assessed values continue to remain a challenge for all of St. Louis County. 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.
- 18 -
SCHOOL DISTRICT OF CLAYTON
MANAGEMENT'S DISCUSSION AND ANALYSIS - UNAUDITED
Year ended June 30, 2019
Economic Factors and Fiscal Year 2019-2020 Budget - continued
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 $1.8 million or 3.32 percent to a total of
$55.6 million. 2018-2019 was the final year of a two-year salary agreement. Administration and
teacher representatives began having salary discussions in March 2019. The Board approved a two-
year salary schedule at their May 8, 2019 meeting. A 1.0 percent budgetary increase for certified
teaching staff has been included in the current projections. The average salary increase for a teacher
is 2.45 percent due to staff turnover. Administrative salaries, classified salaries, part-time temporary
employment and substitute budgets will be increased by 2 percent. 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, an additional $675,000 a year in funding for facility
and maintenance needs will be budgeted. Total proposed maintenance Capital Improvement Plan
(CIP) expenditures for 2019-2020 will include funding at the same level as 2018-2019 of $625,280
with an additional $100,000 from Proposition E for a total allocation of $725,280. The remaining
$575,000 of the additional $675,000 will be used to pay the annual financing payments improvements
at the Center of Clayton.
In addition, requests to expend funds from the sale of the Maryland Building will be presented during
the 2019-2020 school year. 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. The first request will be to hire an architect to perform a safety audit
of our buildings. Facility staff are currently prioritizing other capital maintenance projects to bring
forward for approval.
The District continues to work to control costs and align resources with priorities while also looking
at other strategies to achieve financial balance with minimal impact on students and classrooms.
Operating revenues will exceed operating expenses increasing the operating fund balance by $2.9
million. The District anticipates approximately $1.0 - $1.5 million of the budget to be unexpended
each year. Including these anticipated unexpended budget funds, the operating fund balance is
anticipated to increase approximately $4.4 million.
The 2019-2020 year-end operating fund balances inclusive of business-type activities are projected at
$16.3 million or 28.7 percent. However, $4.8 million has been formally committed by the Board for
future capital expenditures. This leaves a net operating fund balance of $11.5 million or 20. 7 percent
of budgeted operating expenditures which is slightly above the Board's fund balance goal of 18
percent.
- 19 -
SCHOOL DISTRICT OF CLAYTON
MANAGEMENT'S DISCUSSION AND ANALYSIS - UNAUDITED
.
.
Year ended June 30, 2019
Economic Factors and Fiscal Year 2019-2020 Budget - continued
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 six developments where
construction plans have been approved.
•
The Barton - 8400 Maryland A venue, Clayton
•
Central Park Townhomes-1107 East Linden Avenue, Richmond Heights
•
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
•
Allegro Senior Residential Community - 1055 Bellevue A venue, Richmond Heights
•
Clarendale of Clayton- 7651 & 7601 Clayton Road, Clayton
Estimated new construction revenue from only these six developments has been included in
projections. 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.
Preparation of the 2019-2020 budget began in December 2018. 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 from developing the budget was discussed with the Board as study items on April 24 and
May 22, 2019.
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 School District of Clayton. 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, at School District of Clayton, #2 Mark Twain Circle, Clayton, Missouri
63105.
- 20 -
SCHOOL DISTRICT OF CLAYTON
STATEMENT OF NET POSITION
June 30, 2019
Governmental
Business - type
activities
activities
Total
ASSETS
Cash and investments
$
23,637,068
$
$
23,637,068
Restricted cash and investments
5,001,861
5,001,861
Receivables
Property taxes, net of allowance for
uncollectibles of $884,607
58,149,769
58,149,769
Sales tax
379,432
379,432
Grants
133,368
133,368
Other
867,870
30,302
898,172
Inventories
62,509
62,509
Prepaid expenses
310,060
310,060
Capital assets not being depreciated:
Land
714,536
714,536
Capital assets, net of accumulated depreciation:
Buildings and improvements
98,535,256
98,535,256
Furniture and equipment
3,338,288
44,125
3,382,413
Total assets
191,130,017
74,427
191,204,444
DEFERRED OUTFLOWS
Deferred pension contributions
15,286,338
15,286,338
OPEB deferrals
183,918
183,918
Total deferred outflows
15,470,256
15,470,256
LIABILITIES
Accounts payable
1,252,452
39,508
1,291,960
Accrued payroll and payroll taxes
140,293
97,571
237,864
Unearned revenue
173,392
125,394
298,786
lnterfund loans
232,171
(232,171)
Noncurrent liabilities
Due within one year
6,233,592
6,233,592
Due in more than one year
72,124,880
72,124,880
Net pension liability
44,867,812
44,867,812
Postemployment benefits other than pepsions liability
5,765,488
5,765,488
Total liabilities
130,790,080
30,302
130,820,382
DEFERRED INFLOWS OF RESOURCES
Deferred property taxes
58,149,096
58,149,096
Pension deferrals
2,277,940
2,277,940
OPEB deferrals
118,377
118,377
Total deferred inflows of resources
60,545,413
60,545,413
NET POSITION
Net investment in capital assets
30,674,271
44,125
30,718,396
Restricted for:
Debt service
4,000,673
4,000,673
Capital projects
5,737,284
5,737,284
Teachers' salaries and benefits
5,247,538
5,247,538
Medical claims
359,327
359,327
Umestricted
(30,754,313)
(30,754,313)
Total net position
$
15,264,780
$
44,125
$
15,308,905
The accompanying notes are an integral part of this statement.
- 21 -
SCHOOL DISTRICT OF CLAYTON
STATEMENT OF ACTIVITIES
Year ended June 30, 2019
Net (expense) revenue
Program revenues
and changes in net eosition
Charges
Operating
Business-
for
grants and
Governmental
type
Function/Program
Exeenses
services
contributions
activities
activities
Total
Governmental activities
Instruction
$
30,370,087
$
1,623,545
$
688,311
$ (28,058,231)
$
$ (28,058,231)
Attendance and guidance
2,072,533
(2,072,533)
(2,072,533)
Health services
563,566
(563,566)
(563,566)
Improvement of instruction and
professional development
1,021,785
105,845
(915,940)
(915,940)
Media services
950,833
(950,833)
(950,833)
Board of Education services
204,008
(204,008)
(204,008)
Executive administration
2,840,202
(2,840,202)
(2,840,202)
Building level administration
2,726,093
(2,726,093)
(2,726,093)
Operation of plant
10,895,241
860,183
224,740
(9,810,318)
(9,810,318)
Security services
203,982
(203,982)
(203,982)
Nonallowable transportation
185,278
5,417
(179,861)
(179,861)
Food services
1,184,498
831,279
259,103
(94,116)
(94,116)
Business services
931,787
8,067
(923,720)
(923,720)
Central office support services
5,335,592
4,706,948
(628,644)
(628,644)
Adult/community programs
1,201,406
807,567
213,333
(180,506)
(180,506)
Interest and other charges
3,907,058
(3,907,058)
(3,907,058)
Total governmental activities
64,593,949
8,834,939
1,499,399
(54,259,611)
(54,259,611)
Business-type activities
Other
883,805
1,099,031
215,226
215,226
Total business-type activities
883,805
1,099,031
215,226
215,226
Total school district
$
65,477,754
$
9,933,970
$
1,499,399
(54,259,611)
215,226
(54,044,385)
General revenues
Taxes
Property taxes, levied for general purposes
11,591,162
11,591,162
Property taxes, levied for debt services
6,840,734
6,840,734
Property taxes, levied for capital projects
1,208,036
1,208,036
Property taxes, levied for teachers' salaries and benefits
22,803,908
22,803,908
Other taxes
4,303,196
4,303,196
Voluntary student transfer aid
1,568,157
1,568,157
Federal and State aid not restricted to specific purposes
General
2,352,559
2,352,559
Interest and investment earnings
1,629,988
1,629,988
Miscellaneous
187,602
187,602
Total general revenues
52,485,342
52,485,342
Revenues over (under) expenses
before transfers
(1,774,269)
215,226
(1,559,043)
Transfers
223;267
(223,267)
Change in net position
(1,551,002)
(8,041)
(1,559,043)
Net position at July I, 2018
16,815,782
52,166
16,867,948
Net position at June 30, 2019
$ 15,264,780
$
44,125
$ 15,308,905
The accompanying notes are an integral part of this statement.
-22 -
SCHOOL DISTRICT OF CLAYTON
BALANCE SHEET-GOVERNMENTAL FUNDS
June 30, 2019
Special
Debt
Capital
Total
General
Revenue
Service
Projects
Governmental
Fund
Fund
Fund
Fund
Funds
ASSETS
Cash and investments
$
5,147,502
$
7,348,899
$
4,979,156
$
5,457,466
$
22,933,023
Restricted cash and investments
5,001,861
5,001,861
Receivables
Property truces, net of allowance for
uncollectibles of $884,607
16,455,426
32,349,933
8,051,959
1,292,451
58,149,769
Sales truces
237,145
142,287
379,432
Grants
18,282
115,086
133,368
Other
236,594
4,528
626,748
867,870
Inventories
62,509
62,509
Prepaid expenditures
310,060
310,060
Total assets
$ 22,467,518
$ 39,960,733
$ 13,031,115
$ 12,378,526
$
87,837,892
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
LIABILITIES
Accounts payable
$
653,159
$
$
$
254,575
$
907,734
Due to other funds
261,186
261,186
Accrued payroll and payroll truces
31,230
109,063
140,293
Unearned revenue
137,657
6,500
29,235
173,392
Total liabilities
1,083,232
115,563
283,810
1,482,605
DEFERRED INFLOWS OF RESOURCES
Deferred property truces
16,443,020
32,325,519
8,044,636
1,291,158
58,104,333
Deferred grants
26,471
105,022
131,493
Deferred other
4,278
4,278
Total deferred inflows of resources
16,473,769
32,430,541
8,044,636
1,291,158
58,240,104
FUND BALANCES
Nonspendable
Inventories
62,509
62,509
Prepaid expenditures
310,060
310,060
Restricted
Grants
18,282
115,086
133,368
Teachers salaries and benefits
7,299,543
7,299,543
Debt service
4,986,479
4,986,479
Committed
Capital reserve
4,693,732
4,693,732
Assigned
Other capital projects
6,109,826
6,109,826
Student activities
587,987
587,987
Unassigned
3,931,679
3,931,679
Total fund balances
4,910,517
7,414,629
4,986,479
10,803,558
28,115,183
Total liabilities, deferred inflows
of resources and fund balances
$ 22,467,518
$ 39,960,733
$ 13,031,115
$ 12,378,526
$
87,837,892
The accompanying notes are an integral part of this statement.
-23 -
SCHOOL DISTRICT OF CLAYTON
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE
SHEET WITH THE DISTRICT-WIDE STATEMENT OF NET POSITION
June 30, 2019
Amounts reported for governmental activities in the Statement of Net Position are different because:
Total fund balance - governmental funds
Capital assets used in governmental activities are not financial
resources and therefore are not reported as assets in the
governmental funds.
The cost of capital assets is
Accumulated depreciation is
Certain property taxes, grants and other receivables will be
collected this year, but are not available soon enough to pay
for the current period's expenditures, and therefore are
deferred in the funds.
An internal service fund is used by management to charge the
costs of insurance to individual funds. The assets and
liabilities of the internal service fund are included in
governmental activities in the statements of net position.
Deferred outflows of resources are not due and payable in the
current period and therefore are not reported in the funds
Deferred pension contributions
OPEB deferrals
Deferred inflows of resources related to pension deferrals are not
reported in governmental funds
Deferred inflows of resources related to OPEB deferrals are not
reported in governmental funds
Long-term liabilities, including bonds payable, are not due
and not payable in the current period and therefore are not
reported as liabilities in the funds. Long-term liabilities at
year end consist of:
Bonds payable
Capital leases
Accrued interest on the bonds
Compensated absences
Net pension liability
Postemployment benefits other than pensions liability
Net position of governmental activities
149,318,862
(46,730,782)
15,286,338
183,918
71,942,824
5,065,000
978,592
372,056
44,867,812
5,765,488
The accompanying notes are an integral part of this statement.
- 24 -
$ 28,115,183
102,588,080
120,023
359,327
15,470,256
(2,277,940)
(118,377)
(128,991,772)
$ 15,264,780
SCHOOL DISTRICT OF CLAYTON
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
Year ended June 30, 2019
Special
Debt
Capital
Total
General
Revenue
Service
Projects
Governmental
Fund
Fund
Fund
Fund
Funds
Revenues
Local
$ 17,294,981
$ 26,911,952
$
7,312,664
$
1,650,399
$
53,169,996
County
112,759
242,944
151,287
18,835
525,825
State
244,496
1,498,308
1,742,804
Federal
316,041
183,242
1,136,299
1,635,582
Other
5,417
351,630
93,598
450,645
Total revenues
17,973,694
29,188,076
8,600,250
1,762,832
57,524,852
Expenditures
Instruction
2,759,538
26,868,880
665,281
30,293,699
Attendance and guidance
712,672
1,310,617
2,023,289
Health services
437,221
126,345
563,566
Improvement of instruction and
professional development
420,831
600,954
1,021,785
Media services
344,194
606,639
2,618
953,451
Board of Education services
203,563
203,563
Executive administration
1,408,521
1,123,656
283,320
2,815,497
Building level administration
1,086,820
1,536,469
2,623,289
Operation of plant
7,152,373
401,749
7,554,122
Security services
203,979
48,676
252,655
Nonallowable transportation
185,253
185,253
Food services
1,184,498
11,990
1,196,488
Business services
939,330
939,330
Central office support services
448,930
1,098
450,028
Adult/community programs
1,199,620
3,511
1,203,131
Debt service:
Principal retirements
23,750,000
7,122
23,757,122
Interest and other charges
4,331 ,872
63,149
4,395,021
Total expenditures
18,687,343
32,177,071
28,081,872
1,485,003
80,431,289
Revenues over (under) expenditures
(713,649)
(2,988,995)
(19,481,622)
277,829
(22,906,437)
Other financing sources (uses)
Proceeds from capital lease
5,065,000
5,065,000
Transfers
258,936
{33,1562
{2,5132
223,267
258,936
{33,1562
5,062,487
5,288,267
NET CHANGE IN FUND BALANCES
(454,713)
(3,022,151)
(19,481,622)
5,340,316
(17,618,170)
Fund balances at July 1, 2018
5,365,230
10,436,780
24,468,101
5,463,242
45,733,353
Fund balances at June 30, 2019
$
4,910,517
$
7,414,629
$
4,986,479
$ 10,803,558
$
28,115,183
The accompanying notes are an integral part of this statement.
-25 -
SCHOOL DISTRICT OF CLAYTON
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT
OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
WITH THE DISTRICT-WIDE STATEMENT OF ACTIVITIES
Year ended June 30, 2019
Total net change in fund balances - governmental funds
Capital outlay to purchase or build capital assets are reported in governmental funds as expenditures.
However, for governmental activities those costs are shown in the Statement of Net Position and
allocated over their estimated useful lives as annual depreciation expenses in the Statement of
Activities. This is the amount by which capital outlay exceeds depreciation expense for the period.
Depreciation expense
Capital outlay
Because some property taxes, grants and other inflows of resources will not be collected for several months
after the District's fiscal year end, they are not considered as "available" revenues in the governmental
funds, and are instead reported as deferred inflows of resources. They are, however, reported as
revenues in the Statement of Activities.
In the Statement of Activities, the loss or gain on the sale or disposal of capital assets is recognized.
The fund financial statements recognize only the proceeds from the assets.
Loss on disposal of capital assets
In the Statement of Activities, certain operating expenses such as compensated absences (vacations)
are measured by the amounts earned during the year. In the governmental funds, however,
expenditures for these items are measured by the amount of financial resources used ( essentially, the
amounts actually paid).
The governmental funds report debt ( e.g. bond) proceeds as an other financing source, while repayment of
debt principal is reported as an expenditure. Also governmental funds report the effect of premiums
when debt is first issued, whereas these amounts are deferred and amortized in the Statement of
Activities. The net effect of these differences in the treatment of debt and related items are as follows:
Proceeds of capital lease
Repayment of bond principal
Amortization of bond premium
Capital lease principal
Interest on long-term debt in the Statement of Activities differs from the amount reported in the
governmental funds because interest is recorded as an expenditure in the funds when it is due, and
thus requires the use of current financial resources. In the Statement of Activities, however, interest
expense is recognized as the interest accrues, regardless of when it is due.
The internal service fund used by management to charge the costs of the insurance to individual funds is
not reported in the Statement of Activities. Governmental fund expenditures and the related internal
service fund revenues are eliminated. The net revenue (expense) of the internal service fund is
included in the governmental activities.
The fund financial statements do not recognize the liability related to postemployment benefits other than
pensions. The increase in this liability is recognized in the Statement of Activities.
The fund financial statements do not recognize the pension liability. The increase is recognized
in the Statement of Activities.
Change in net position of governmental activities
The accompanying notes are an integral part of this statement.
- 26 -
3,683,076
(1,362,487)
(5,065,000)
23,750,000
761,290
7,122
$
$
(17,618,170)
(2,320,589)
(112,551)
(60,861)
(34,879)
19,453,412
487,963
(176,353)
(127,239)
(1,041,735)
(1,551,002)
SCHOOL DISTRICT OF CLAYTON
STATEMENT OF NET POSITION - PROPRIETARY FUNDS
June 30, 2019
Business-
type
Governmental
activities -
activities -
Enterprise
Internal
fund
service fund
Total
ASSETS
Current assets
Cash
$
$
704,045
$
704,045
Other receivables
30,302
30,302
Noncurrent assets
Due from other funds
232,171
232,171
Furniture and equipment, net
44,125
44,125
Total assets
306,598
704,045
1,010,643
LIABILITIES
Current liabilities
Accounts payable
39,508
344,718
384,226
Accrued payroll and payroll taxes
97,571
97,571
Unearned revenue
125,394
125,394
Total current liabilities
262,473
344,718
607,191
NET POSITION
Net investment in capital assets
44,125
44,125
Unrestricted
359,327
359,327
Total net position
$
44,125
$
359,327
$
403,452
The accompanying notes are an integral part of this statement.
- 27 -
SCHOOL DISTRICT OF CLAYTON
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET POSITION - PROPRIETARY FUNDS
Year ended June 30, 2019
Business-
type
Governmental
activities -
activities -
Enterprise
Internal
fund
service fund
Total
Operating revenues
Contributions
$
$
4,697,683
$ 4,697,683
Rents
107,023
107,023
Tuition and fees
992,008
992,008
Other
9,264
9,264
Total operating revenues
1,099,031
4,706,947
5,805,978
Operating expenses
Salaries
594,110
594,110
Benefits
109,375
109,375
Purchased services
121,145
-
121,145
Supplies
51,135
51,135
Claims expense and fees
4,883,300
4,883,300
Depreciation
8,040
8,040
Total operating expenses
883,805
4,883,300
5,767,105
Operating income (loss)
215,226
(176,353)
38,873
Other
Transfers to governmental activities
(223,267)
(223,267)
CHANGES IN NET POSITION
(8,041)
(176,353)
(184,394)
Net position at July 1, 2018
52,166
535,680
587,846
Net position at June 30, 2019
$
44,125
$
359,327
$
403,452
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, 2019
Business-
type
Governmental
activities -
activities -
Enterprise
Internal
fund
service fund
Total
Cash flows from operating activities
Cash received from employee/employer contributions
$
$
4,706,947
$
4,706,947
Cash received from user charges
1,069,082
1,069,082
Cash payments to employees for services
(697,872)
(697,872)
Cash payments for supplies and services
{183,233)
{4,835,134)
{5,018,367)
Net cash provided by (used in) operating activities
187,977
(128,187)
59,790
Cash flows from noncapital financing activities
Operating subsidies and transfers to other funds
{187,977)
{187,977)
NET DECREASE IN CASH
(128,187)
(128,187)
Cash at July 1, 2018
832,232
832,232
Cash at June 30, 2019
$
$
704,045
$
704,045
Reconciliation of operating income (loss) to net
cash provided by (used in) operating activities
Operating income (loss)
$
215,228
$
(176,353)
$
38,875
Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities
Depreciation
8,040
8,040
Increase in accounts receivable
(22,022)
(22,022)
Increase (decrease) in accounts payable
(10,955)
48,166
37,211
Increase in accrued payroll and payroll taxes
5,613
5,613
Decrease in deferred revenues
{7,927)
{7,927)
Net cash provided by (used in) operating activities
$
187,977
$
{128,187)
$
59,790
The accompanying notes are an integral part of this statement.
- 29 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
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 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.-
I. Principles Determining the Scope of Reporting Entity
Generally accepted accounting principles require that the financial reporting entity is to 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 FINANCIAL STATEMENTS
June 30, 2019
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 FINANCIAL STATEMENTS
June 30, 2019
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
2. Basis of Presentation - 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 FINANCIAL STATEMENTS
June 30, 2019
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
3. Measurement Focus and 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 temporary 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. Interest is 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 services 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 FINANCIAL STATEMENTS
June 30, 2019
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
Furniture and equipment
50 years
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 government-wide and proprietary funds statements of net
position. Deferred outflows of resources reported in this year's financial statements are deferred
outflow of resources related to the District's defined benefit pension plans as further disclosed in Note
G and deferred outflow of resources related to 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 FINANCIAL STATEMENTS
June 30, 2019
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 repaid from governmental and business-type activities are reported as
liabilities in the district-wide financial statements. Long-term liabilities primarily consist of bonds,
capital leases, 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 statement of net position and its governmental fund balance sheet 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 ofresources 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 to that there has not been a tax levy set yet. Lastly, the District reports a deferred
inflow related to OPEB for changes in assumptions to the 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 governmental funds balance sheet.
- 35 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
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 consist of capital assets including restricted capital
assets, net of accumulated depreciation and 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 - consists of 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 - consists of funds that are mandated for a specific purpose by external parties,
constitutional provisions or enabling legislation.
Committed - consists of funds that are set aside for a specific purpose by the District's highest
level of decision making authority, the Board of Education. 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.
Unassigned - includes 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.
The details of the fund balances are included in the Governmental Funds balance sheet.
- 36 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
15. Equity Classifications - Continued
Proprietary funds equity is classified the same as in the district-wide financial statements.
16. Revenue
Property truces 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 true
revenues are recognized in the fiscal year levied. In the fund financial statements, property truces are
recognized in the fiscal year levied when they become measurable and available. Available 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 true 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 true 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
COBRA 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 fifteenth (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.
In accordance with Chapter 169, RS Mo, 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.
- 37 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
18. Use of Estimates
The preparation of the financial statements in conformity with accounting principles generally
accepted in the United States of America 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.
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 (State 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.
Deposits
Missouri statutes require that all deposits with financial institutions be collateralized in an amount at
least equal to uninsured deposits. At June 3 0, 2019, the carrying amount of the deposits under District
control was $5,118,388 and the bank balance was $5,452,622. Of the bank balance, $250,000 was
covered by federal depository insurance and the remaining amount was collateralized by securities
held by the District's safekeeping agent, pledged in the name of the District.
- 38 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
NOTE B - CASH AND INVESTMENTS - Continued
Investments
The District may purchase any investments allowed by the 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, or (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 Federal Deposit Insurance Corporation
(FDIC) or collateralized with government securities that have a fair value exceeding the deposit
amount. As of June 30, 2019, the District had the following investments and maturities:
Type
External investment pools
Goldman Sachs Financial Square Government Funds
Value
$ 18,518,481
5,001,861
$ 23,520,342
Investment Maturity
0 to 1 year
$
$
18,518,481
5,001,861
23,520,342
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 Fund. The investments are stated
at amortized cost, which approximates fair value, except for the term investments, which are stated at
net asset value. The net asset value of the term investments was $3,280,000 at June 30, 2019.
In June, 2019, the District entered into a lease purchase agreement with Commerce Trust Company.
The funds received are invested with Commerce Trust Company in the Goldman Sachs Financial
Square Government Fund, which primarily consists of U.S. Treasury obligations, U.S. government
securities, and related repurchase agreements. The investments are stated at amortized cost, which
approximates fair value.
- 39 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
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 fulfillits 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 and the term investments are rated AAAf by Fitch Ratings. The District's
investments held in escrow by Commerce Trust Company are rated AAAm2 by Standard and Poor's.
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, 2019, the District's investments
were held by the investment's counterparty.
- 40 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
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, 2019:
Cashon hand
Carrying amount of deposits
Investments
NOTE C -TAXES
$
199
5,118,388
23,520,342
$ 28,638,929
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. The 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 assessed valuation of the tangible taxable property for the calendar year 2018 for purposes of
local taxation was:
Real estate:
Residential
Commercial
Personal property
Less tax increment financing
- 41 -
$
590,409,240
459,084,570
96,561,950
1,146,055,760
9,815,380
$ 1,136,240,380
SCHOOL DISTRICT OF CLAYTON
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
NOTE C - TAXES - Continued
The tax levy per $100 of the assessed valuation of tangible taxable property for the calendar year 2018
for purposes of local taxation was as follows:
Unadjusted
Adjusted
General Fund
$
1.1469
$
1.0555
Special Revenue Fund
2.0770
2.0770
Debt Service Fund
0.6230
0.6230
Capital Projects Fund
0.1100
0.1100
$
3.9569
$
3.8655
The receipts of current property taxes during the fiscal year ended June 30, 2019 aggregated
approximately 96.8% of the 2018 assessment computed on the basis of the levy as shown above.
- 42 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
NOTED - CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2019, was as follows:
Balance at
June 30, 2018
Additions
Governmental activities
Capital assets not being depreciated
Land
$
714,536
$
Capital assets that are depreciated
Buildings and improvements
129,425,239
373,266
Furniture and equipment
19,072,378
989,221
Totals at historical cost
149,212,153
1,362,487
Less accumulated depreciation
Buildings and improvements
(28,447,375)
(2,815,874)
Furniture and equipment
(15,795,248)
(867,202)
Total accumulated depreciation
(44,242,623)
(3,683,076)
$ 104,969,530
$
(2,320,589)
Business-type activities
Capital assets that are depreciated
Furniture and equipment
$
113,578
$
Less accumulated depreciation
Furniture and equipment
(61,413)
(8,040)
$
52,165
$
(8,040)
Balance at
Disposals
June 30, 2019
$
$
714,536
129,798,505
(1,255,778)
18,805,821
(1,255,778)
149,318,862
(31,263,249)
1,194,917
(15,467,533)
1,194,917
(46,730,782)
$
(60,861)
$
l 02,588,080
$
$
113,578
(69,453)
$
$
44,125
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 FINANCIAL STATEMENTS
June 30, 2019
NOTE E - LONG-TERM LIABILITIES
The following is a summary of the changes in long-term liabilities for the year ended June 30,
2019:
Balance
Balance
Amount
as of
as of
due within
July 1, 2018
Additions
Reductions
June 30, 2019
one year
General obligation bonds
$ 92,802,000
$
$23,750,000
$ 69,052,000
$ 4,935,000
Deferred amounts for
issuance premium
3,652,114
761,290
2,890,824
Total bonds payable, net
96,454,114
24,511,290
71,942,824
4,935,000
Interest
1,466,555
978,592
1,466,555
978,592
978,592
Capital lease
7,122
5,065,000
7,122
5,065,000
320,000
Compensated absences
337,177
34,879
372,056
$ 98,264,968
$ 6,078,471
$25,984,967
$ 78,358,472
$ 6,233,592
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 liquidated by the General Fund and Special Revenue Fund.
Bonds payable
General obligation bonds outstanding at June 30, 2019 were as follows:
Original
Balance
Date
Maturity
Rate of
lSSue
at June 30,
issued
date
interest
amount
2019
10/14/09
03/01/24
1.37%
$ 9,185,000
$ 9,185,000
11/03/09
03/01/21
0.80%-4.75%
10,720,000
3,195,000
09/08/10
03/01/27
4.70%
3,987,000
3,987,000
09/28/10
03/01/30
4.70%-5.00%
16,205,000
16,205,000
09/28/10
03/01/28
3.90%-4.70%
16,270,000
16,270,000
12/27/17
03/01/29
4.00% - 5.00%
23,465,000
20,210,000
$69,052,000
- 44 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
NOTE E - LONG-TERM LIABILITIES - Continued
The annual requirements to amortize the general obligation bonds as of June 30, 2019, including
interest payments, are as follows:
Year ending June 30,
Principal
Interest
Total
2020
$
4,935,000
$
2,887,649
$
7,822,649
2021
5,250,000
2,646,979
7,896,979
2022
4,850,000
2,427,991
7,277,991
2023
2,845,000
2,221,791
5,066,791
2024
9,185,000
2,088,101
11,273,101
2025-29
33,777,000
6,831,189
40,608,190
2030
8,210,000
410,500
8,620,500
$ 69,052,000
$
19,514,200
$ 88,566,200
Legal Debt Margin
Article VI, Section 26 (b ), Constitution of Missouri, limits the outstanding amount of authorized
General Obligation Bonds of a district to 15% of the assessed valuation of a District. The legal
debt margin of the District at June 30, 2019 was:
Constitutional debt limit
General obligation bonds payable
Amount available in
Debt Service Fund
Legal debt margin
Capital Lease Payable
$ 170,436,057
(69,052,000)
4,986,479
$ 106,370,536
On June 1, 2019, the District entered into a $5,065,000 capital lease purchase agreement. The
proceeds of the lease will be 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.
- 45 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
NOTE E - LONG-TERM LIABILITIES - Continued
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, 2019.
Year ended Jme 30,
2020
2021
2022
2023
2024
2025-2029
Total minimum lease payments
. Less amomt representing interest
Present value of minimum lease payments
NOTE F -TAX ABATEMENTS
$
403,044
594,500
592,917
591,093
594,244
2,963,133
5,738,931
(673,931)
$
5,065,000
The District is subject to tax abatement agreements granted by either St. Louis County, the City of
Clayton or the City of Richmond Heights. Abatements under Chapter 100 and Chapter 353 of the
Revised Statutes of Missouri 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 2019, the total amount of tax abated was approximately $855,000 in property 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), 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.
- 46 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
NOTE G - RETIREMENT PLANS - Continued
Plan Description - Continued
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 System 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.
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 5 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. Beginning July 1, 2001,
and ending July 1, 2014, a 2.55% benefit factor was used to calculate benefits for members who
had 31 or more years of service at retirement. 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.
- 47 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
NOTE G - RETIREMENT PLANS - Continued
Benefits Provided - Continued
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 one-time partial lump sum (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.
Cost-of-Living Adjustments ("COLA")
The Board of Trustees has 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 cost-of-living 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.
If the June to June change in the CPI-U is greater than or equal to 2%, but less than 5%, a cost-
of-living increase of2% will be granted.
If the June to June change in the CPI-U is greater than or equal to 5%, a cost-of-living 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.
- 48 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
NOTE G - RETIREMENT PLANS - Continued
Contributions
PSRS members were required to contribute 14.5% of their annual covered salary during fiscal
years 201 7, 2018 and 2019. Employers were required to match the contributions made by
employees. The contribution rate is set each year by the PSRS Board of Trustees 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 1% of
pay.
PEERS members were required to contribute 6.86% of their annual covered salary during fiscal
years 2017, 2018 and 2019. Employers were required to match the contributions made by
employees. The contribution rate is set each year by the PSRS Board of Trustees upon the
reconunendation 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.
The District's contributions to PSRS and PEERS were $3,918,329 and $588,264, respectively, for
the year ended June 30, 2019.
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to Pensions
At June 30, 2019, the District recorded a liability of $41,022,820 for its proportionate share of
PSRS net pension liability and $3,844,992 for its proportionate share of PEERS net pension
liability. In total the district recorded net pension liabilities of $44,867,812. The net pension
liability for the plans in total was measured as of June 30, 2018, 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 ofits actual contributions paid to PSRS and PEERS of$3,843,008 and $567,941,
respectively, for the year ended June 30, 2018 relative to the total contributions of $697,214,371
for PSRS and $114,141,743 for PEERS from all participating employers. At June 30, 2018, the
District's proportionate share was 0.5512% for PSRS and 0.4976% for PEERS.
For the year ended June 30, 2019, the District recognized a pension expense of $4,789,408 for
PSRS and $754,162 for PEERS, its proportionate share of the total pension expense.
- 49 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
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, 2019, 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
$
2,136,909
$
5,503
$ 2,142,412
Change in assumptions
7,486,980
592,491
8,079,471
Net difference between projected and actual earnings
on pension plan investments
(345,591)
(52,155)
(397,746)
Changes in proportion and differences between Employer
contributions and proportionate share of contributions
947,396
8,212
955,608
Employer contributions subsequent to the measurement date
3,918,329
588,264
4,506,593
Total
$
14,144,023
$
1,142,315
$ 15,286,338
At June 30, 2019, the District reported deferred inflows of resources from the following sources
related to PSRS and PEERS pension benefits:
Balance of deferred inflows due to:
Differences between expected and actual experience
$
Changes in proportion and differences between Employer
contributions and proportionate share of contributions
Total
$
Deferred inflows of resources
PSRS
PEERS
District Total
1,935,305
$
90,074
$ 2,025,379
194,379
58,182
252,561
2,129,684
$
148,256
$ 2,277,940
Amounts reported as deferred outflows of resources resulting from contributions subsequent to the
measurement date of June 30, 2018, will be recognized as a reduction to the net pension liability in the
year ended June 30, 2020.
- 50 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
NOTE G - RETIREMENT PLANS - Continued
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to Pensions - Continued
Other amounts reported as collective deferred (inflows) / outflows of resources are to be
recognized in pension expense as follows:
Year ending June 30,
PSRS
2020
$ 3,847,529
2021
2,420,076
2022
(292,296)
2023
1,331,974
2024
759,538
Thereafter
29,189
$ 8,096,010
Actuarial Assumptions
PEERS
$
435,739
200,828
(185,489)
(45,283)
$
405,795
District Total
$ 4,283,268
2,620,904
(477,785)
1,286,691
759,538
29,189
$ 8,501,805
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 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 Board 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 ofreturn was reduced from 7.75%
to 7.60% and the assumption for the annual cost-of-living adjustments was updated in accordance
with the funding policies amended by the Board of Trustees 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%. Significant actuarial assumption and methods, including changes from the prior
year, are detailed below. For additional information please refer to the Systems' Comprehensive
Annual Financial Report (CAFR). The next experience studies are scheduled for 2021.
- 51 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
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, 2018
Valuation Date: June 30, 2018
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% ofreal 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% ofreal wage growth due to productivity.
Cost of Living Increases PSRS & PEERS: The annual COLA assumed in the valuation increases
from 1.25% to 1.65% over eight years, beginning January 1, 2020. The COLA reflected for
January 1, 2019 is 2.00%, in accordance with the actual COLA approved by the Board. This
COLA assumption reflects an assumption that general inflation will increase from 1.85% to a
normative inflation assumption of2.25% over eight years. It is also based on the current policy of
the Board 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
cost-of-living 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.
- 52 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
NOTE G - RETIREMENT PLANS - Continued
Actuarial Assumptions - Continued
If the June to June change in the CPI-U is greater than or equal to 2%, but less than 5%, a cost-
of-living increase of 2% will be granted.
If the June to June change in the CPI-U is greater than or equal to 5%, a cost-of-living 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.
- 53 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
NOTE G - RETIREMENT PLANS - Continued
Actuarial Assumptions - Continued
Changes in Actuarial Assumptions and Methods -
The following assumptions were updated by the Board at the October 29, 2018 meeting:
•
PSRS & PEERS: The investment return assumption was lowered from 7.60% to
7.50% per year.
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 ofreturn 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, 2018 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.
- 54 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
NOTE G - RETIREMENT PLANS - Continued
Actuarial Assumptions - Continued
Expected Rate of Return - continued
Target asset
Asset class
allocation
U.S. Public Equity
27.00
Public Credit
7.00
Hedged Assets
6.00
Non-U.S. Public Equity
15.00
U.S. Treasuries
16.00
U.S. TIPS
4.00
Private Credit
4.00
Private Equity
12.00
Private Real Estate
9.00
Total
100.00
%
%
Long-term expected
real return
arithmetic basis
5.16
2.17
4.42
6.01
0.96
0.80
5.60
9.86
3.56
Inflation
Long-term arithmetical nominal return
Effect of covariance matrix
Long-term expected geometric return
- 55 -
Weighted long-term
expected real return
arithmetic basis
%
1.39 %
0.15
0.27
0.90
0.15
0.03
0.22
1.18
0.32
4.61
2.25
6.86
0.64
7.50 %
SCHOOL DISTRICT OF CLAYTON
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
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, 2018, 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 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 year. As previously discussed, the Board of Trustees further reduced the assumed rate of
return to 7.60% effective with the June 30, 2017 valuation and to 7.50% 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,
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 of7.50% 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)
$
73,536,471
$
41,022,820
$
14,000,584
PEERS
Proportionate share of the net
pension liability/ (asset)
7,240,603
3,844,992
997,152
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 institutions.
- 56 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
NOTE I- OTHER POSTEMPLOYMENT BENEFITS (OPED)
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
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, 2017:
Actives
Retired and beneficiaries
Total
Contributions
Ntnnber
448
224
672
Average Age
46.4
69.2
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.
Total OPED Liability
The District's total OPEB liability of $5,765,488 was measured as of June 30, 2019, and the total
liability used to calculate the total OPEB liability was determined by an actuarial valuation as of June
30, 2017.
Actuarial Cost Method: Entry age normal
Inflation: 2.30%
Salary Increases: 3.00%
Discount Rate: 3 .50% based on the 20 year Bond GO Index at June 30, 2019. The rate for the prior
year was 3.87%.
- 57 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
NOTE I - OTHER POSTEMPLOYMENT BENEFITS (OPEB) - Continued
Actuarial Assumptions - Continued
Healthcare Cost Trend Rates: 6.70% for 2017, gradually decreasing to an ultimate rate of 4.10% for
2086 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: RP-2014 Mortality for Employees and Healthy Annuitants, with generational projection
per Scale MP-2016.
Changes in Total OPEB Liability
The components of the total OPEB liability of the District at June 30, 2019 are as follows:
Balances as of June 30, 2018
Service cost
Interest on total OPEB liability
Changes in assumptions
Benefit payments
Balances as of June 30, 2019
Total OPEB
Liability
$ 5,433,040
264,514
213,641
211,954
(357,661)
$ 5,765,488
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.
Total OPEB liability
1% decrease
(2.50%)
$ 6,402,256
- 58 -
Discount rate
(3.50%)
$ 5,765,488
1% increase
(4.50%)
$ 5,218,383
SCHOOL DISTRICT OF CLAYTON
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
NOTE I - OTHER POSTEMPLOYMENT BENEFITS (OPED) - Continued
Sensitivity of the Total OPED 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
Total OPEB liability
$ 5,011,883
Current Trend
Rate
$ 5,765,488
1% increase
$ 6,683,248
OPED Expense and Deferred Outflows and Inflows of Resources Related to OPED
For the year ended June 30, 2019, the District recognized OPEB expense of $484,900, a reduction to
deferred inflows of $21,291 related to the changes in assumptions, and deferred outflows of $183,918
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
Net Outflows
June 30
of Resources
2020
$
6,745
2021
6,745
2022
6,745
2023
6,745
2024
6,745
Thereafter *
31,816
Total
$
65,541
* Note that additional future deferred inflows and outflows of resources may impact these numbers.
- 59 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
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.
Protested Taxes
Each year the County remits certain unresolved protested tax payments to the District. When the
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 the County are not
material in relation to the District's financial position and results of operations.
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 District, along with the City of Clayton, is responsible for funding one-half of any operational
short-fall of the Commission. The Board of Education must approve the Commission's budget.
The construction of the project was funded by $5,500,000 of general obligation bonds issued by the
District and from $11,500,000 of bonds issued by the City of Clayton.
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, 2019 the Commission owed the District $160,436 for miscellaneous purchases, shared
utilities and maintenance salaries. Complete financial statements for the Commission can be obtained
from the Commission's administrative office.
- 60 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO FINANCIAL STATEMENTS
June 30, 2019
NOTE L - RISK MANAGEMENT
District's Health Insurance Plan
The District utilizes 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 (IBNR).
The District incurred claims of$3,973,423 of which $3,628,705 was paid and $344,718 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 and
aggregate stop loss limit insurance is also purchased which limits the district's calendar year exposure
to $4,738,798 for all claims.
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.
- 61 -
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, 2019
Variances -
Actual
(!OSitive {negative}
Budgeted amounts
(budgetary
Original
Final
Original
Final
basis}
to final
to actual
Revenues
Local
$ 15,777,800
$ 16,170,210
$ 17,220,784
$
392,410
$ 1,050,574
County
95,000
110,000
112,759
15,000
2,759
State
184,410
233,110
254,561
48,700
21,451
Federal
304,110
326,120
255,997
22,010
(70,123)
Other
3,000
5,420
5,417
2,420
{32
Total revenues
16,364,320
16,844,860
17,849,518
480,540
1,004,658
Expenditures
Instruction
3,038,810
3,004,400
2,740,122
34,410
264,278
Attendance and guidance
746,600
769,470
726,028
(22,870)
43,442
Health services
452,090
443,890
437,661
8,200
6,229
Improvement of instruction and
professional development
491,000
542,870
400,078
(51,870)
142,792
Media services
281,780
293,790
337,447
(12,010)
(43,657)
Board of Education services
196,240
216,670
198,680
(20,430)
17,990
Executive administration
1,696,980
1,662,020
1,500,915
34,960
161 ,105
Building level administration
1,128,570
1,097,850
1,085,728
30,720
12,122
Operation of plant
7,503,560
7,566,930
7,138,669
(63,370)
428,261
Security services
218,970
242,230
204,115
(23,260)
38,115
Nonallowable transportation
195,770
223,450
185,903
(27,680)
37,547
Food services
1,109,600
1,105,100
1,126,222
4,500
(21,122)
Business services
936,720
920,240
899,142
16,480
21 ,098
Central office support services
437,720
472,830
443,787
(35,110)
29,043
Adult/community programs
1,003,860
1,022,060
1,190,951
{18,2002
{168,891}
Total expenditures
19,438,270
19,583,800
18,615,448
{145,530}
968,352
Revenues over (under) expenditures
$ {3,073,950}
$ {2, 738,9402
$
{765,930}
$
335,010
$ 1,973,010
The accompanying notes are an integral part of this schedule.
- 63 -
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, 2019
Variances -
Actual
eositive (negative)
Budgeted amounts
(budgetary
Original
Final
Original
Final
basis)
to final
to actual
Revenues
Local
$ 28,710,680
$ 25,082,450
$ 26,908,287
$ (3,628,230)
$ 1,825,837
County
249,000
242,700
242,944
(6,300)
244
State
1,359,570
1,401 ,740
1,488,243
42,170
86,503
Federal
224,460
142,090
183,242
(82,370)
41,152
Other
388,570
320,000
349,325
(68,570)
29,325
Total revenues
30,932,280
27,188,980
29,172,041
(3,743,300)
1,983,061
Expenditures
Instruction
27,600,060
27,668,090
26,895,998
(68,030)
772,092
Attendance and guidance
1,303,860
1,303,860
1,310,617
(6,757)
Health Services
112,680
112,680
126,345
(13,665)
Improvement of instruction and
professional development
584,820
587,730
588,321
(2,910)
(591)
Media services
606,730
606,730
606,639
91
Executive administration
1,124,880
1,124,880
1,123,656
1,224
Building level administration
1,575,690
1,575,690
1,536,469
39,221
Businss Services
90,000
90,000
90,000
Central office support services
6,960
6,960
6,960
Adult/community programs
14,920
14,920
3,511
11,409
Total expenditures
33,020,600
33,091,540
32,191,556
(70,940)
899,984
Revenues over (under) expenditures
$ {2,088,320}
$ {5,902,560)
$ (3,019,515)
$ (3,814,240)
$2,883,045
The accompanying notes are an integral part of this schedule.
- 64 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
June 30, 2019
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 of
Education 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 of Education, the budget document is available for public inspection.
•
Prior to July 1, the budget is legally enacted by a vote of the Board of Education.
•
Subsequent to its formal approval of the budget, the Board of Education 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 6, 2018, or as amended by the Board
of Education 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.
- 65 -
SCHOOL DISTRICT OF CLAYTON
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
June 30, 2019
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:
Special
General
Revenue
Fund
Fund
Revenues
Revenues - cash basis
$ 17,849,518
$ 29,172,041
Current year revenue accruals
384,104
174,792
Prior year revenue accruals
(259,928)
(158,757)
Revenues - modified accrual basis
$ 17,973,694
$ 29,188,076
Expenditures
Expenditures - cash basis
$ 18,615,448
$ 32,191,556
Current year expenditure accruals
187,305
109,063
Prior year expenditure accruals
(115,410)
(123,548)
Expenditures - modified accrual basis
$ 18,687,343
$ 32,177,071
- 66 -
SCHOOL DISTRICT OF CLAYTON
NET PENSION LIABILITY - UNAUDITED
Year Ended June 30, 2019
Schedule of Proportionate Share of the Net Pension Liability and Related Ratios-PSRS
Net Pension
Fiduciary Net
Proportion of the
Proportionate share
Actual
Liability (Asset)
Position as a
Year
Net Pension
of the Net Pension
member
as a percentage
percentage of total
ended*
Liability (Asset)
Liability (Asset)
payroll
of covered payroll
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
151.66%
84.06%
Schedule of Proportionate Share of the Net Pension Liability and Related Ratios - PEERS
Net Pension
Fiduciary Net
Proportion of the
Proportionate share
Actual
Liability (Asset)
Position as a
Year
Net Pension
of the Net Pension
member
as a percentage
percentage of total
ended*
Liability (Asset)
Liability (Asset)
payroll
of covered payroll
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%
Schedule of Employer Contributions - PSRS
Contributions as
Contractually
Actual
Contributions
a percentage of
Year
required
employer
excess/
Covered
of covered
ended
contribution
contributions
( deficiency)
payroll
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
3,453,947
24,305,850
14.20%
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
3,918,329
3,918,329
27,613,312
14.19%
- 67 -
SCHOOL DISTRICT OF CLAYTON
NET PENSION LIABILITY - UNAUDITED
Year Ended June 30, 2019
Schedule of Employer Contributions - PEERS
Contractually
Actual
Year
required
employer
ended
contribution
contributions
6/30/2013
$ 535,396
$ 535,396
6/30/2014
523,447
523,447
6/30/2015
518,849
518,849
6/30/2016
542,557
542,557
6/30/2017
558,224
558,224
6/30/2018
567,941
567,941
6/30/2019
588,264
588,264
Contnbutions as
Contnbutions
a percentage of
excess /
Covered
of covered
( deficiency)
payroll
payroll
$
$ 7,805,015
6.86%
7,630,413
6.86%
7,563,393
6.86%
7,908,987
6.86%
8,137,380
6.86%
8,279,018
6.86%
8,575,277
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 Systems' net pension
liability, which is as of the beginning of the District's fiscal year.
- 68 -
SCHOOL DISTRICT OF CLAYTON
SCHEDULE OF CHANGES IN TOT AL OPEB LIABILITY
AND RELATED RATIOS - UNAUDITED
Year Ended June 30, 2019
Schedule of Changes in Total OPEB Liability
Total OPEB liability
Service cost
Interest on total O PEB liability
Changes in assumptions
Benefit payments
Net change in total OPEB liability
Total OPEB liability at beginning of year
Total OPEB liability at end of year
Covered Payroll
Total OPEB liability as a percentage of covered payroll
2019
$
264,514
213,641
211,954
(357,661)
332,448
5,433,040
$ 5,765,488
$32,341,024
17.83%
2018
$
270,318
199,304
(160,959)
(341,928)
(33,265)
5,466,305
$ 5,433,040
$31,688,037
17.15%
Note: This schedule is to present information for 10 years.
become available.
Additional years will be presented as they
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.
- 69 -
SUPPLEMENT ARY INFORMATION
SCHOOL DISTRICT OF CLAYTON
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL -
CASH BASIS - DEBT SERVICE FUND
Year Ended June 30, 2019
Budgeted amounts
Revenues
Local
County
Federal
Total revenues
Expenditures
Debt service
Principal retirements
Interest and other charges
Total expenditures
Revenues over (under) expenditures
Reconciliation of budgetary basis (cash basis) of
accounting to modified accrual basis of accounting
Revenues per above - cash basis
Current year revenue accruals
Prior year revenue accruals
Revenues - modified accrual basis
Expenditures per above - cash basis
Current year expenditure accruals
Prior year expenditure accruals
Expenditures - modified accrual basis
$
$
Original
Final
6,995,090
$
6,803,730
150,000
150,000
1,096,450
1,136,300
8,241,540
8,090,030
23,750,000
23,750,000
4,334,540
4,334,540
28,084,540
28,084,540
(19,843,000)
$ (19,994,5102
- 71 -
Variances-
Actual
l!ositive (negative)
(budgetary
Original
Final
basis)
to final
to actual
$
7,310,584
$
191,360
$
506,854
151,287
1,287
1,136,299
(39,8502
(12
8,598,170
151,510
508,140
23,750,000
4,331,872
2,668
28,081,872
2,668
$ (19,483,702)
$
151,510
$
510,808
$
8,598,170
7,322
(5,2422
$
8,600,250
$
28,081,872
$
28,081,872
SCHOOL DISTRICT OF CLAYTON
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL -
CASH BASIS- CAPITAL PROJECTS FUND
Year Ended June 30, 2019
Variances -
Actual
l!Ositive (negative}
Budgeted amounts
(budgetary
Original
Final
Original
Final
basis}
to final
to actual
Revenues
Local
$
1,234,030
$
1,325,290
$
1,681,224
$
(91,260)
$
355,934
County
30,000
18,000
18,835
12,000
835
Other
25,000
94,000
93,925
(69,000)
(75!
Total revenues
1,289,030
1,437,290
1,793,984
(148,260)
356,694
Expenditures
Instruction
680,210
780,960
696,714
100,750
84,246
Media services
1,310
2,618
1,310
(1,308)
Executive Administration
120,120
361,160
96,212
241,040
264,948
Building level administration
5,880
5,883
5,880
(3)
Operation of plant
673,430
875,870
633,468
202,440
242,402
Security services
3,000
64,770
48,676
61,770
16,094
Nonallowable transportation
4,300
4,300
4,295
5
Food services
14,000
11,990
14,000
2,010
Business services
32,500
23,000
(9,500)
23,000
Central office support services
1,500
1,500
1,098
402
Facility acquisition and construction
597,505
(597,505)
Debt service:
Interest and other charges
20
20
10
10
Total expenditures
1,515,080
2,132,770
2,098,469
617,690
34,301
Revenues over (under) expenditures
$
(226,050}
$
(695,480}
$
(304,485}
$
469,430
$
(390,995}
Reconciliation of budgetary basis (cash basis) of
accounting to modified accrual basis of accounting
Revenues per above - cash basis
$
1,793,984
Current year revenue accruals
5,066,301
Prior year revenue accruals
(32,453)
Revenues - modified accrual basis
$
6,827,832
Expenditures per above - cash basis
$
2,098,469
Current year expenditure accruals
(277,279)
Prior year expenditure accruals
(333,674)
Expenditures - modified accrual basis
$
1,487,516
- 72-
OTHER INFORMATION
SCHOOL DISTRICT OF CLAYTON
ANNUAL FINANCIAL INFORMATION AND OPERATING DATA- UNAUDITED
Year ended June 30, 2019
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 oflssuance:
Oct. 14, 2009; Nov. 3, 2009; Sept. 08, 2010; Sept. 28, 2010; Dec 27, 2017
Relating to CUSIP Nos.:
Name of Issuer: School District of Clayton, St. Louis County, Missouri
Date oflssuance: Oct. 14, 2009; Nov. 3, 2009; Sept. 8, 2010; Sept. 28, 2010; Dec. 27, 2017
Relating to CUSIP Nos.:
Series 2009A
Series 2009B
Series 2009C
Series 2010A
Series 2010B
FG6
GC4
GY6
184270 HY5
18~270 HZ2
184270 JM9
184270 JN7
FH4
GD2
GZ3
184270 HU3
184270 JB3
184270 JP2
FJO
GEO
HA7
184270 HVl
184270 JCl
184270 JQ0
FK7
GF7
HB5
184270HW9
184270 JD9
FL5
005
HC3
184270 HX7
184270 JE7
FM3
GH3
HDl
184270 JF4
FNl
GJ9
HE9
184270 JG2
FP6
GK6
HF6
184270 JH0
FQ4
GL4
HG4
184270 JJ6
FR2
GM2
HH2
184270 JK3
FS0
ONO
HJ8
184270 JLl
FT8
GP5
HK5
FUS
GQ3
HL3
FV3
GRl
HMI
FWl
GS9
HN9
FX9
GT7
HP4
FY7
GU4
HQ2
FZ4
GV2
HR0
GAS
GW0
HS8
GB6
GX8
HT6
- 74 -
Series 2010C
Series 2017
184270 JV9
184270 KP0
184270 JR8
184270 KQ8
184270 JS6
184270 KR6
184270 JT4
184270 KS4
184270 JUI
184270 KT2
184270 JW7
184270 KU9
184270 KV7
184270 KW5
184270 KX3
SCHOOL DISTRICT OF CLAYTON
ANNUAL FINANCIAL INFORMATION AND OPERATING DATA- UNAUDITED
Year ended June 30, 2019
History of Enrollment
Listed below are the District's Fall enrollment figures for the last four and current school years:
Grade
2014-2015 2015-2016 2016-2017 2017-2018 2018-2019
K
151
162
178
168
153
1st
173
169
169
198
164
2nd
174
177
183
187
190
3rd
185
180
180
196
192
4th
176
193
198
188
188
5th
203
191
206
210
194
6th
205
216
205
221
219
7th
209
221
229
201
242
8th
197
211
219
235
210
9th
217
211
222
232
226
10th
218
221
210
222
237
11th
226
216
224
206
227
12th
214
222
214
217
210
Total
2,548
2,590
2,637
2,681
2,652
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, 2019.
Revenue Source
% of Total
Local Revenue
92.58 %
County Revenue
0.92
State Revenue
3.03
Federal Revenue
2.85
Other Revenue
0.62
Total
100.00 %
Note: Excludes proceeds from capital lease.
- 75 -
SCHOOL DISTRICT OF CLAYTON
ANNUAL FINANCIAL INFORMATION AND OPERATING DATA - UNAUDITED
Year ended June 30, 2019
Sources of Revenue by Fiscal Year
The following table shows the District's sources ofrevenues for the fiscal years shown below:
Fiscal
Year
Ended
June
30
2015
2016
2017
2018
2019
Local
County
State
Federal
Revenue
Revenue
Revenue
Revenue
$52,263,173
$541,935
$1,621,831
$ 1,798,118
51,592,838
549,601
1,689,504
1,699,830
51,425,428
536,786
1,741,020
1,738,923
54,455,608
559,302
1,729,439
1,673,247
53,169,996
525,825
1,742,804
1,635,582
* Includes proceeds from the sale ofrefunded bonds and from the sale of land
* * Includes statutory tuition revenue
Property Tax Information
Other
Total
Revenue
Revenue
$
15,663
$56,240,720
6,394
55,538,167
30,729
55,472,886
31,264,065 *
89,681,661
357,047 **
57,431,254
The following table provides the history of total assessed valuation of all taxable tangible property
situated in the District, according to the assessments as of January 1, in the calendar years shown
below:
Calendar
Year
2014
2015
2016
2017
2018
Assessed Valuation
$ 1,002,431,060
1,037,313,560
1,036,106,710
1,152,388,120
1,136,240,380
- 76 -
% Change
NIA
3.48%
-0.12%
11.22%
-1.40%
SCHOOL DISTRICT OF CLAYTON
ANNUAL FINANCIAL INFORMATION AND OPERATING DATA- UNAUDITED
Year ended June 30, 2019
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
2016
2017
2018
2019
Real
Estate
Real Estate
Real Estate
Residential
Commercial
Agricultural
$
3.8492
$
4.5393
$
3.8423
4.3583
3.6494
4.1682
3.6921
4.0670
Tax Rates - Allocation by Fund
Personal
Property
$3.9985
3.9946
3.9845
3.9792
The following table shows the District's adjusted tax levies (per $100 of assessed valuation) for each
of the following fiscal years:
Fiscal
Special
Capital
Year
General
Revenue
Projects
Debt
Total Levy-
Ended
(Incidental)
(Te ache rs')
(Building)
Service
Blended
June 30
Fund
Fund
Fund
Fund
Rate
2015
$
1.2795
$
2.2233
$
0.1800
$
0.6230
$
4.3058
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
- 77 -
SCHOOL DISTRICT OF CLAYTON
ANNUAL FINANCIAL INFORMATION AND OPERATING DATA- UNAUDITED
Year ended June 30, 2019
Tax Collection Record
The following table sets forth tax collection information for thy District for the last five fiscal years:
Total Levy
(per$100 of
Current and Delinquent
Fiscal
Assessed
Assessed
Total Taxes
Current Taxes Collected
Taxes Collected
Year
Value)
Valuation
Levied
Amount
%
Amount
%
2014-15
$ 4.3058
$1,002,431,060
$
43,162,677
$42,195,648
97.76%
$42,465,881
98.39%
2015-16
4.1458
1,037,313,560
43,004,946
42,039,622
97.76%
39,737,985
92.40%
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
1,152,388,120
44,837,117
43,801,052
97.69%
43,078,099
96.08%
2018-19
3.8655
1,136,240,380
43,921 ,372
43,046,572
98.01%
42,500,328
96.76%
Major Propei:-ty Taxpayers
The ten largest real property taxpayers in the District according to their 2018 assessed valuations are
listed below:
% of District's
2018 Total
Assessed
Assessed
Taxpayer
Valuation
Valuation
1. St. Louis Galleria LLC
$ 29,156,600
2.57 %
2. KBSII Pierre Laclede Center LLC
25,185,160
2.22 %
3. Clayton Franklin Clayton Plaza LLC
20,177,470
1.78 %
4. Clayton Corp. Park Management Co
19,002,980
1.67 %
5. KBSIII 101 South Hanley LLC
18,493,600
1.63 %
6. Clayton St. Louis Property LLC
17,536,000
1.54 %
7. Centene Management Company
16,049,240
1.41 %
8. Clayton Central Owner LLC
13,677,050
1.20 %
9. 8182 Maryland Associates LTD PTNSP
12,678,850
1.12 %
10. Mept Shaw Park Plaza LLC
12,402,180
1.09 %
$184,359,130
16.23 %
- 78 -