HomeMy Public PortalAbout2014 Audited Financials
THE METROPOLITAN ST. LOUIS
SEWER DISTRICT
DEFINED CONTRIBUTION PLAN
FINANCIAL STATEMENTS
DECEMBER 31, 2014 AND 2013
Contents
Page
Independent Auditors’ Report........................................................................ 1 - 2
Management’s Discussion And Analysis ....................................................... 3 - 7
Financial Statements
Statements Of Fiduciary Net Position................................................................8
Statements Of Changes In Fiduciary Net Position ............................................9
Notes To Financial Statements ................................................................ 10 - 17
Supplemental Information
Historical Trend Information ...........................................................................18
Expense Ratios .................................................................................................19
Independent Auditors’ Report
Board of Trustees
The Metropolitan St. Louis Sewer District
St. Louis, Missouri
Report On The Financial Statements
We have audited the accompanying Statement of Fiduciary Net Position of The Metropolitan St.
Louis Sewer District Defined Contribution Plan (the Plan) as of December 31, 2014 and 2013, and
the related Statement of Changes in Fiduciary Net Position for the years then ended, and the related
notes to the financial statements, which collectively comprise the Plan’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 an opinion on these financial statements based on our audits. We
conducted our audits in accordance with auditing standards generally accepted in the United States of
America. 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 entity’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 entity’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 opinion.
Board of Trustees
The Metropolitan St. Louis Sewer District
Page 2
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
fiduciary net position of The Metropolitan St. Louis Sewer District Defined Contribution Plan as of
December 31, 2014 and 2013, and the changes in fiduciary net position for the years 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 on pages 3 through 7 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 an opinion on the Plan’s financial statements.
The supplemental information which includes historical trend information and expense ratios are
presented for purposes of additional analysis and are not a required part of the basic financial
statements. The supplemental 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 supplemental information 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 it.
June 30, 2015
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFINED CONTRIBUTION PLAN
Page 3
MANAGEMENT’S DISCUSSION AND ANALYSIS
For The Year Ended December 31, 2014
This report consists of a series of financial statements related to The Metropolitan St. Louis Sewer
District’s Defined Contribution Plan (the Plan). The Statement of Fiduciary Net Position and the
Statement of Changes in Fiduciary Net Position (on pages 8 and 9) provide information about this
Plan’s net position and changes in its net position during the year. These statements are prepared
using the accrual basis of accounting.
The Management’s Discussion and Analysis of the Plan’s financial performance provides an
overview of the Plan’s financial activities for the fiscal years ended December 31, 2014 and 2013.
Please read it in conjunction with the Plan’s financial section.
FINANCIAL HIGHLIGHTS 2014
• At December 31, the Plan consisted of 251 active participants with account balances just
under $2.5M in net position.
• Total increase to the Plan’s net position (page 9) amounted to $942,801 consisting of Plan
contributions and other additions of $907,020 offset by deductions of $98,732 and net
investment gains of $134,513.
• Administrative expenses (part of the deductions to the Plan’s net position) totaled $36,170.
This consisted of Vanguard record-keeping and compliance testing. The balance was made
up of legal fees related to compliance.
FINANCIAL HIGHLIGHTS 2013
• At December 31, the Plan consisted of 186 active participants with account balances over
$1.5M in net position.
• Total increase to the Plan’s net position (page 9) amounted to $856,637 consisting of Plan
contributions and other additions of $678,967 offset by deductions of $27,154 and net
investment gains of $204,824.
• Administrative expenses (part of the deductions to the Plan’s net position) totaled $24,814.
This consisted of Vanguard record-keeping and compliance testing. There were no legal fees
related to compliance this year.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFINED CONTRIBUTION PLAN
Management’s Discussion And Analysis (Continued)
Page 4
ANALYSIS OF FINANCIAL ACTIVITIES
• The Plan showed a positive net change of $260,739 when compared to original costs. The
Vanguard Target Retirement 2045 Fund had the greatest gain in value for any one individual
fund at $54,497. The group of Vanguard Target Retirement Funds, in the aggregate, had a
gain in value of $172,427. These funds also make up 70% of the value in the Plan. See the
chart below for the annual change in value for each fund.
Value at
December 31 Net % of Current
Fund Name Cost 2014 Change Value
Vanguard Group, Inc.
Target Retirement 2045 Fund 437,351$ 491,848$ 54,497$ 20.11 %
Target Retirement 2040 Fund 231,870 261,955 30,085 10.71
Target Retirement 2050 Fund 215,042 242,228 27,186 9.90
Small-Cap Index Fund 94,287 118,761 24,474 4.85
500 Index Fund 106,567 130,815 24,248 5.35
Target Retirement 2035 Fund 247,891 271,464 23,573 11.09
Mid-Cap Index Fund 67,620 88,252 20,632 3.61
Target Retirement 2025 Fund 156,847 173,705 16,858 7.10
Target Retirement 2030 Fund 79,755 87,612 7,857 3.58
Balanced Index Fund 41,256 47,528 6,272 1.94
Target Retirement 2020 Fund 56,815 62,470 5,655 2.55
Target Retirement 2055 Fund 90,664 96,044 5,380 3.92
U.S. Growth Fund 42,037 47,401 5,364 1.94
Windsor II Fund 41,387 46,105 4,718 1.88
International Growth Fund 53,793 56,396 2,603 2.30
Target Retirement Income Fund 15,142 15,774 632 0.64
Target Retirement 2060 Fund 11,117 11,480 363 0.47
Target Retirement 2015 Fund 5,395 5,727 332 0.23
Target Retirement 2010 Fund 904 913 9 0.04
Total Bond Market Index Fund 35,815 35,816 1 1.46
Retirement Savings Trust 55,017 55,017 — 2.25
Prime Money Market Fund 99,754 99,754 — 4.08
Totals 2,186,326$ 2,447,065$ 260,739$ 100.00 %
Change in Fund Asset Values - 2014
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFINED CONTRIBUTION PLAN
Management’s Discussion And Analysis (Continued)
Page 5
Value at
December 31 Net % of Current
Fund Name Cost 2013 Change Value
Vanguard Group, Inc.
Target Retirement 2045 Fund 264,540$ 307,645$ 43,105$ 20.84 %
Target Retirement 2040 Fund 133,400 155,655 22,255 10.55
Target Retirement 2050 Fund 124,760 146,391 21,631 9.91
Small-Cap Index Fund 59,911 79,089 19,178 5.35
Target Retirement 2025 Fund 127,968 144,947 16,979 9.81
Target Retirement 2035 Fund 122,897 139,368 16,471 9.43
500 Index Fund 59,548 74,037 14,489 5.01
Mid-Cap Index Fund 46,294 59,115 12,821 4.00
International Growth Fund 44,952 52,994 8,042 3.59
Target Retirement 2030 Fund 51,820 57,947 6,127 3.92
Windsor II Fund 25,248 30,099 4,851 2.04
U.S. Growth Fund 17,261 21,918 4,657 1.48
Balanced Index Fund 22,699 26,296 3,597 1.78
Target Retirement 2020 Fund 34,017 37,544 3,527 2.54
Target Retirement 2055 Fund 31,342 34,529 3,187 2.34
Target Retirement Income Fund 19,919 20,560 641 1.39
Target Retirement 2015 Fund 3,297 3,468 171 0.23
Target Retirement 2060 Fund 2,823 2,970 147 0.20
Target Retirement 2010 Fund 322 324 2 0.02
Retirement Savings Trust 36,573 36,573 - 2.48
Prime Money Market Fund 11,084 11,084 - 0.75
Total Bond Market Index Fund 35,860 34,600 (1,260) 2.34
Totals 1,276,535$ 1,477,153$ 200,618$ 100.00 %
Change in Fund Asset Values - 2013
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFINED CONTRIBUTION PLAN
Management’s Discussion And Analysis (Continued)
Page 6
INVESTMENT ASSET ALLOCATION
• Investment decisions are participant directed. The participants are offered a diversified
portfolio of investment options from which to select. These investment options represent a
series of mutual funds sponsored and managed by the Vanguard Group. A breakdown of the
participant directed assets allocation as of December 31, 2014 follows:
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFINED CONTRIBUTION PLAN
Management’s Discussion And Analysis (Continued)
Page 7
Percent
Change
Contributions and Other Additions 907,020$ 678,967$ 34%
Net Investment Gain/Loss 134,513 204,824 -34%
Total Additions 1,041,533 883,791 18%
Percent
Change
Distribution to Participants 62,562$ 2,340$ 2574%
Administrative Expenses 36,170 24,814 46%
Total Deductions 98,732 27,154 264%
Percent
Change
Net Increase 942,801$ 856,637$ 10%
Net Assets Available for Benefits, January 1 1,504,264 647,627 132%
Net Assets Available for Benefits, December 31 2,447,065 1,504,264 63%
2014 2013
Plan Additions, Deductions, and Net Assets are as follows:
Plan Additions
Plan Deductions
Net Assets
20132014
2014 2013
FIDUCIARY RESPONSIBILITIES
The Board of Trustees and senior management are fiduciaries of the Plan and Trust. Fiduciaries are
charged with the responsibility of assuring that the assets of the Plan are used exclusively for the
benefit of plan participants and the beneficiaries.
REQUEST FOR INFORMATION
This financial report is designed to provide the Board of Trustees, participants, investment managers,
and other interested parties with an overview of the Plan’s finances and accountability for the money
received. Questions concerning any of the information provided in this report or requests for
additional information should be addressed to:
Tim Snoke, Secretary-Treasurer
The Metropolitan St. Louis Sewer District
2350 Market Street
St. Louis, MO 63103-2555
E-mail: tsnoke@stlmsd.com
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFINED CONTRIBUTION PLAN
See the accompanying notes to financial statements. Page 8
STATEMENTS OF FIDUCIARY NET POSITION
2014 2013
ASSETS
Investments at fair value:
Mutual Funds 2,392,048$ 1,440,580$
Investments at contract value:
Common/collective trust 55,017 36,573
Total Investments 2,447,065 1,477,153
Receivables:
Employer contributions 0 27,111
NET POSITION RESTRICTED FOR PLAN BENEFITS 2,447,065$ 1,504,264$
For The Years
Ended December 31,
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFINED CONTRIBUTION PLAN
See the accompanying notes to financial statements. Page 9
STATEMENTS OF CHANGES IN FIDUCIARY NET POSITION
2014 2013
ADDITIONS TO NET POSITION ATTRIBUTED TO:
Investment income:
Net appreciation in fair value of investments 88,000$ 180,783$
Interest and dividends 49,328 25,810
Total investment income 137,328 206,593
Less - investment managers' and advisors' fees 2,815 1,769
Net investment income 134,513 204,824
Contributions and Other Additions:
Employer contributions 868,036 652,385
Plan expenses paid by employer 38,984 26,582
Total Contributions and Other Additions 907,020 678,967
Total Additions 1,041,533 883,791
DEDUCTIONS FROM NET POSITION ATTRIBUTED TO:
Distributions to participants and beneficiaries 62,562 2,340
Administrative expenses 36,170 24,814
Total Deductions 98,732 27,154
NET INCREASE 942,801 856,637
NET POSITION RESTRICTED FOR PLAN BENEFITS, January 1 1,504,264 647,627
NET POSITION RESTRICTED FOR PLAN BENEFITS, December 31 2,447,065$ 1,504,264$
For The Years
Ended December 31,
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFINED CONTRIBUTION PLAN
Page 10
NOTES TO FINANCIAL STATEMENTS
December 31, 2014 And 2013
1. Summary of Accounting Policies
The following accounting policies, which conform to generally accepted accounting
principles, have been used consistently in the preparation of The Metropolitan St. Louis
Sewer District’s Defined Contribution Plan’s (the Plan) financial reports.
Basis of Accounting
The financial reports of the Plan are prepared under the accrual method of accounting.
Estimates and Assumptions
The preparation of financial reports in conformity with generally accepted accounting
principles 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 reports and the reported amounts of additions and deductions during the
reporting period. Actual results could differ from those estimates.
Investment Valuation and Income Recognition
The Plan’s investments in mutual funds are stated at fair value. Shares of registered
investment companies are valued at quoted market prices which represent the net asset value
of shares held by the Plan at year-end. Units of the Retirement Savings Trust are valued at
contract value.
Purchases and sales of investments are recorded on a trade-date basis. Interest income is
accrued when earned. Dividend income is recorded on the ex-dividend date. Capital gain
distributions are included in dividend income. Realized gains of $27,882 and $3,852 are
included in net appreciation in fair value of investments for the periods ended December 31,
2014 and 2013, respectively.
Payment of Benefits
Benefits are recorded when paid.
Subsequent Events
Management has evaluated subsequent events through June 30, 2015, the date through which
the financial statements were available for issue.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFINED CONTRIBUTION PLAN
Notes To Financial Statements (Continued)
Page 11
2. Description of Plan
The following description of the Plan provides only general information. Participants should
refer to the Plan agreement for a more complete description of the Plan’s provisions.
General
The Plan is a defined contribution benefit plan established by the District’s Board of Trustees
through Ordinance 13180 and became effective January 1, 2011. The following employees
are eligible to participate in the Plan: (i) employees first hired on or after January 1, 2011, and
(ii) employees hired prior to January 1, 2011 who elect to terminate participation in the
Metropolitan St. Louis Sewer District Employees’ Pension Plan, effective as of April 1, 2011,
in accordance with the provisions of such Pension Plan, and (iii) employees rehired on or after
January 1, 2011 who are not eligible to accrue benefits under the Metropolitan St. Louis
Sewer District Employees’ Pension Plan. An employee shall become a participant in the Plan
on the first day on which he performs an hour of service for the District.
The District’s Board of Trustees, primarily to improve benefits to members, amends the Plan
in all its respects. A pension committee consisting of two members of the District’s Board of
Trustees, two elected employee members and four members of the District’s management
staff administer the Plan. A committee of the District’s Board of Trustees, with the aid of an
investment advisor, reviews and evaluates the Plan’s investments and the related rates of
return on a periodic basis.
This Plan is intended to provide a means whereby the District may provide retirement benefits
to eligible employees and encourage such employees to establish a regular method of savings,
thereby providing a measure of financial security for such employees and their beneficiaries
upon retirement or in the event of death or disability.
Contributions
Employer Basic Contributions. For each payroll period, the District contributes an amount
equal to 7% of the covered compensation earned during such period by each participant
entitled to an allocation of such contribution.
Employer Matching Contributions. For each payroll period, the District contributes an
amount equal to 50% of the covered compensation of such participant withholding as an
annual deferral (as defined in the Deferred Compensation Plan) pursuant to the Deferred
Compensation Plan; provided that, before-tax contributions in excess of 4% of the covered
compensation of the participant for the payroll period shall not be considered for purposes of
Employer Matching Contributions. Employer Matching Contributions shall be up to the
maximum amount of compensation that may be taken into account for the Plan year.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFINED CONTRIBUTION PLAN
Notes To Financial Statements (Continued)
Page 12
In no event shall the sum of the employer contributions and employee contributions allocated
to the account of a participant for the Plan year exceed the lesser of:
(a) The amount specified in the applicable Internal Revenue Code (the Code), as adjusted
annually for any applicable increases in the cost of living.
(b) 100% of the participant’s compensation for such year.
The compensation limit referred to in (b) shall not apply to any contribution from medical
benefits after separation from service.
Participant Accounts
The Plan administrator shall establish and maintain a separate individual account for each
participant (which may consist of various sub-accounts established by the Plan Administrator)
to reflect the participant’s share of contributions made and the income, loss, appreciation and
depreciation attributable to the account. The Plan Administrator shall keep accurate records
of all contributions, receipts, investment distributions and all other transactions. The amount
credited to the individual account of a participant from time to time as of the most recent
valuation date shall constitute the entire interest of the participant in the Plan.
Vesting
As of any time before the normal retirement age of a participant, the first day of the month
coinciding with or next following a person’s 65th birthday and completion of 60 months of
continuous service (other than upon death or permanent disability), the vested percentage of
the amounts credited to the participant’s employer basic contributions account shall be
determined in accordance with the following schedule:
Months of Service Vested Percentages
Less than 12 0%
12 but less than 24 20%
24 but less than 36 40%
36 but less than 48 60%
48 but less than 60 80%
60 100%
The amount credited to the employer matching contributions account shall be fully vested at
all times.
Investment Options
Vanguard offers participants in the Plan the following investment options:
Equity option: Vanguard Windsor II Fund, Vanguard Index 500 Fund, and Vanguard
U.S. Growth Fund - Investment objective is long-term capital appreciation.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFINED CONTRIBUTION PLAN
Notes To Financial Statements (Continued)
Page 13
Diversification option: Vanguard Small-Cap, Vanguard Mid-Cap Index Fund, and
Vanguard International Growth Fund - Investment objective is long-term capital
appreciation.
Bond option: Vanguard Total Bond Market Index Fund - Investment objective is
income stability and conservation of principal.
Balanced option: Vanguard Balanced Index Fund - Investment objective is income,
conservation of principal and long-term growth.
Stable Value option: Vanguard Retirement Savings Trust - Investment objective is
income stability and conservation of principal.
Money Market option: Vanguard Prime Money Market Fund - Investment objective is
income while maintaining safety of principal.
Target retirement option: Vanguard Target Retirement 2010-2060 Fund and Vanguard
Target Retirement Income Fund - Investment objective is capital appreciation and
current income consistent with its current asset allocation.
Payment of Benefits
Upon the severance from service of a participant, the amount credited to his/her individual
account shall be payable to the extent such that it is vested. The value of a participant’s
vested individual account balance shall be distributed as soon as administratively feasible.
The amount payable to a participant shall be the vested amount credited to his/her individual
account as of the valuation date immediately preceding such distribution. This amount shall
be distributed in any one or a combination of the following forms as the participant may elect:
(a) In one lump sum payment; or
(b) In annual, quarterly or monthly installments.
Forfeited Accounts
Upon a participant’s severance from service, the unvested amount credited to his/her
individual account shall be forfeited and credited to the employer basic contributions account
and shall be used to reduce employer basic contributions. If a participant is rehired before
incurring two consecutive years break-in service, the amount previously forfeited will be
restored. If rehired after two consecutive years of break-in service, the amounts previously
forfeited will not be restored.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFINED CONTRIBUTION PLAN
Notes To Financial Statements (Continued)
Page 14
Administrative Expenses
The general administrative expenses shall be paid by the District. These expenses consist of
legal and accounting expenses as well as the administration of the Plan. Expenses attributable
to a participant’s choice of optional investments are charged to the respective participant’s
account.
3. Investments
Investment balances
Investments held by custodians in the Plan’s name are as follows:
Fund Name 2014 2013 change
Vanguard Group, Inc.
Target Retirement 2045 Fund 491,848$ * 307,645$ * 184,203$
Target Retirement 2035 Fund 271,464 * 139,368 * 132,096
Target Retirement 2040 Fund 261,955 * 155,655 * 106,300
Target Retirement 2050 Fund 242,228 * 146,391 * 95,837
Target Retirement 2025 Fund 173,705 * 144,947 * 28,758
500 Index Fund 130,815 * 74,037 * 56,778
Small-Cap Index Fund 118,761 79,089 * 39,672
Prime Money Market Fund 99,754 11,084 88,670
Target Retirement 2055 Fund 96,044 34,529 61,515
Mid-Cap Index Fund 88,252 59,115 29,137
Target Retirement 2030 Fund 87,612 57,947 29,665
Target Retirement 2020 Fund 62,470 37,544 24,926
International Growth Fund 56,396 52,994 3,402
Balanced Index Fund 47,528 26,296 21,232
U.S. Growth Fund 47,401 21,918 25,483
Windsor II Fund 46,105 30,099 16,006
Total Bond Market Index Fund 35,816 34,600 1,216
Target Retirement Income Fund 15,774 20,560 (4,786)
Target Retirement 2060 Fund 11,480 2,970 8,510
Target Retirement 2015 Fund 5,727 3,468 2,259
Target Retirement 2010 Fund 913 324 589
2,392,048 1,440,580 951,468
Investments, at contract value
Retirement Savings Trust 55,017 36,573 18,444
Total Investments 2,447,065$ 1,477,153$ 969,912$
For The Years
Ended December 31,
* Represents 5% or more of the Plan’s net position as of December 31, 2014 and 2013.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFINED CONTRIBUTION PLAN
Notes To Financial Statements (Continued)
Page 15
Categories of Asset Risk - Debt Securities Interest Rate and Credit Risk
The Plan will minimize the risk that the market value of securities in the portfolio will fall due
to changes in general interest rates by selecting mutual funds for the investment portfolio that
manage credit quality and duration of fixed income investments.
The Plan will minimize credit risk, the risk of loss due to failure of the security issuer or
backer, by selecting mutual funds for the investment portfolio that manage their respective
fund under a predetermined average credit risk investment management policy.
The following table provides information on the duration and credit ratings associated with
the Plan’s investment in debt-backed mutual funds, excluding obligations of the U.S.
government or obligations explicitly guaranteed by the U.S. government within these funds at
December 31, 2014 and 2013:
Average
Fair Value at Effective
Debt-Backed December 31, Not Duration
Mutual Fund Name 2014 Rated in Years
Vanguard Group, Inc.
Target Retirement 2045 Fund 491,848$ yes 5.86
Target Retirement 2035 Fund 271,464 yes 5.85
Target Retirement 2040 Fund 261,955 yes 5.85
Target Retirement 2050 Fund 242,228 yes 5.85
Target Retirement 2025 Fund 173,705 yes 5.84
Target Retirement 2055 Fund 96,044 yes 5.86
Target Retirement 2030 Fund 87,612 yes 5.85
Target Retirement 2020 Fund 62,470 yes 5.84
Retirement Savings Trust 55,017 yes 2.50
Balanced Index Fund 47,528 yes 5.66
Total Bond Market Index Fund 35,816 yes 5.50
Target Retirement Income Fund 15,774 yes 5.18
Target Retirement 2060 Fund 11,480 yes 5.85
Target Retirement 2015 Fund 5,727 yes 5.42
Target Retirement 2010 Fund 913 yes 5.24
Credit Quality Percentage of Total Mutual Fund-2014
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFINED CONTRIBUTION PLAN
Notes To Financial Statements (Continued)
Page 16
Average
Fair Value at Effective
Debt-Backed December 31, Not Duration
Mutual Funds 2013 Rated in Years
Vanguard Group, Inc.
Target Retirement 2045 307,645$ yes 5.68
Target Retirement 2040 155,655 yes 5.68
Target Retirement 2050 146,391 yes 5.68
Target Retirement 2025 144,947 yes 5.68
Target Retirement 2035 139,368 yes 5.67
Target Retirement 2030 57,947 yes 5.68
Target Retirement 2020 37,544 yes 5.68
Retirement Savings Trust 36,573 yes 2.77
Total Bond Market Index Fund Inv 34,600 yes 5.62
Target Retirement 2055 34,529 yes 5.69
Balanced Index Fund Inv 26,296 yes 5.60
Target Retirement Income Fund Total 20,560 yes 5.03
Target Retirement 2015 Fund Total 3,468 yes 5.35
Target Retirement 2060 Fund Total 2,970 yes 5.69
Target Retirement 2010 Fund Total 324 yes 5.11
Credit Quality Percentage of Total Mutual Fund-2013
4. Risks and Uncertainties
The Plan invests in various investment securities as directed by the Plan’s participants.
Investment securities are exposed to various risks such as interest rate, market, and credit risk.
Due to the level of risk associated with certain investment securities, it is at least reasonably
possible that changes in the values of investment securities will occur in the near term and
that such change could materially affect the participants’ account balances and amounts
reported in the Statement of Plan Net Position.
5. Plan Termination
Although it has not expressed any intent to do so, the District has the right under the Plan to
terminate the Plan at any time. In the event of Plan termination, the Trustee shall liquidate the
assets and disburse all funds to participants or their beneficiaries.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFINED CONTRIBUTION PLAN
Notes To Financial Statements (Continued)
Page 17
6. Related Party Transactions
The Plan invests in shares of mutual funds managed by an affiliate of Vanguard Fiduciary
Trust Company (VFTC). VFTC acts as trustee for only those investments as defined by the
Plan. Transactions in such investments qualify as a related party transaction.
7. Tax Status
The plan received a favorable determination letter from the Internal Revenue Service (IRS) on
May 21, 2014, in which the IRS stated that the plan, as then designed, was in compliance with
the applicable requirements of the Code.
SUPPLEMENTAL INFORMATION
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFINED CONTRIBUTION PLAN
See the accompanying independent auditors’ report. Page 18
HISTORICAL TREND INFORMATION
For The Net Distributions to Increase
Years Ended Employer Investment Participants and (Decrease)
December 31 Contributions Gain (Loss) Beneficiaries In Net Assets
2014 868,036$ 134,513$ 62,562$ 942,801$
2013 652,385 204,824 2,340 856,637
2012 398,628 44,390 41 443,906
2011 167,298 (5,193) 4,834 203,721
Historical Trend Information
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFINED CONTRIBUTION PLAN
See the accompanying independent auditors’ report. Page 19
EXPENSE RATIOS
This asset-based fee is a measure of what it costs an investment company to operate a mutual fund. An
expense ratio is determined through an annual calculation, where a fund's operating expenses are divided
by the average dollar value of its assets under management. Operating expenses are taken out of a fund's
assets, lowering the return in the fund. Lower expense ratios reduce fees coming out of a fund, thus
increasing the fund’s rate of return to the participant. The listing below shows all funds and their asset
value with their corresponding expense ratio.
Value at
December 31
Fund Name 2014
Vanguard Group, Inc.
Target Retirement 2045 Fund 491,848$ 0.18 %
Target Retirement 2040 Fund 261,955 0.18
Target Retirement 2050 Fund 242,228 0.18
Target Retirement 2025 Fund 173,705 0.17
Target Retirement 2035 Fund 271,464 0.18
Small-Cap Index Fund 118,761 0.24
500 Index Fund 130,815 0.17
Mid-Cap Index Fund 88,252 0.24
Target Retirement 2030 Fund 87,612 0.17
International Growth Fund 56,396 0.47
Target Retirement 2020 Fund 62,470 0.16
Retirement Savings Trust 55,017 0.53
Total Bond Market Index Fund 35,816 0.20
Target Retirement 2055 Fund 96,044 0.18
Windsor II Fund 46,105 0.36
Balanced Index Fund 47,528 0.24
U.S. Growth Fund 47,401 0.44
Target Retirement Income Fund 15,774 0.16
Prime Money Market Fund 99,754 0.14
Target Retirement 2015 Fund 5,727 0.16
Target Retirement 2060 Fund 11,480 0.18
Target Retirement 2010 Fund 913 0.16
Vanguard Total/Average Ratio 2,447,065$ 0.23 %
Fund Values and Their Expense Ratios
Expense
Ratio