Independent Auditors’ Report Board of EducationLee’s Summit R-VII School District Lee’s Summit, Missouri Report on the Audit of the Financial Statements Opinions We have audited the accompanying modified cash basis financial statements of the governmental activities, each major fund, and the remaining fund information of Lee’s Summit R-VII School District, as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents. In our opinion, the modified cash basis financial statements referred to above present fairly, in all material respects, the respective modified cash basis financial position of the governmental activities, each major fund, and the remaining fund information of Lee’s Summit R-VII School District, as of June 30, 2025, and the respective changes in modified cash basis financial position thereof for the year then ended in accordance with the basis of accounting in Note 1. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to the financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Lee’s Summit R-VII School District and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Basis of Accounting As described in Note 1 of the financial statements, the financial statements are prepared on the modified cash basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to that matter. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with the modified cash basis of accounting described in Note 1; this includes determining that the modified cash basis of accounting is an acceptable basis for the preparation of the financial statements in the circumstances. Management is also responsible for 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. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we: · Exercise professional judgment and maintain professional skepticism throughout the audit. · Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. · Obtain an understanding of internal control relevant to the audit 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, no such opinion is expressed. · Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. · Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the District’s basic financial statements. The supplementary information, as identified in the table of contents, is presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The 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 supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the budgetary comparison schedules and Historical Schedule of Insurance Reserves, but does not include the basic financial statements and our auditors’ report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 4, 2025, on our consideration of Lee’s Summit R-VII School District’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the District’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 Lee’s Summit R-VII School District’s internal control over financial reporting and compliance. KPM CPAs, PC Springfield, Missouri December 4, 2025 Lee’s Summit R-VII School District Statement of Receipts, Disbursements, and Changes in Fund Balances – Governmental Funds – Modified Cash Basis Year Ended June 30, 2025 General Fund Special Revenue Debt Service Capital Projects Total Governmental Fund Fund Fund Funds Receipts Local $ 152,764,940 $ 25,041,651 $ 29,477,394 $ 11,068,064 $ 218,352,049 County 3,649,493 102,609 1,350,026 27,845 5,129,973 State 10,492,031 78,359,981 - 23,553 88,875,565 Federal 9,864,219 1,302,988 325,862 1,616,434 13,109,503 Other 382,294 814,469 1,196,763 Total Receipts 177,152,977 105,621,698 31,153,282 12,735,896 326,663,853 Disbursements Instruction 27,191,900 130,517,100 - 299,647 158,008,647 Student services 10,448,863 11,084,017 - 16,720 21,549,600 Instructional staff 3,628,045 5,661,026 - - 9,289,071 support Building 3,849,366 10,720,923 - - 14,570,289 administration General 17,110,229 4,672,836 - 1,493,168 23,276,233 administration Operation of plant 27,702,347 8,317 - 12,888,145 40,598,809 Transportation 14,086,140 - - 3,866,517 17,952,657 Food service 9,997,321 - - 304,586 10,301,907 Community 3,433,432 1,426,043 - 34,242 4,893,717 services Facilities - - - 8,694,509 8,694,509 acquisition and construction Debt service 33,350,861 4,101,288 37,452,149 Total 164,090,262 33,350,861 31,698,822 346,587,588 Disbursements 117,447,643 Excess (Deficit) of Receipts Over Disbursements 59,705,334 (58,468,564) (2,197,579) (18,962,926) (19,923,735) Other Financing Sources (Uses) Premium on bonds - - - 4,964,546 4,964,546 sold Sale of bonds - - - 45,000,000 45,000,000 Net insurance - - - 7,472 7,472 recovery Sale of school - - - 15,955 15,955 buses Sale of other 22,821 - - 52,909 75,730 property Operating - 58,468,564 - 4,000,000 62,468,564 transfers in Operating transfers (62,468,564) (62,468,564) (out) Total Other Financing Sources (Uses) (62,445,743) 58,468,564 54,040,882 50,063,703 Net Change in (2,740,409) (2,197,579) 35,077,956 30,139,968 Fund Balances Fund Balances, 76,570,372 14,216,980 14,843,667 105,631,019 Beginning of Year Fund Balances, $ 73,829,963 $ $ 12,019,401 $ 49,921,623 $ 135,770,987 End of Year Net change in fund balances - total governmental funds - modified cash basis $ 30,139,968 An Internal Service Fund is used by the District’s management to charge the costs of the self- funded health care plan to the individuals funds. The net receipts (disbursements) of the activities of the Internal Service Fund is reported with governmental activities. 1,275,125 Change in net position of governmental activities - modified cash basis $ 31,415,093 See accompanying Notes to the Financial Statements