Financial Statements June 30, 2021
Clovis Unified School District

Clovis Unified School District Table of Contents
June 30, 2021

Independent Auditor’s Report...................................................................................................................................1 Management’s Discussion and Analysis ....................................................................................................................4 Government‐Wide Financial Statements
Statement of Net Position ...................................................................................................................................16 Statement of Activities.........................................................................................................................................17

Government Fund Financial Statements

Balance Sheet – Governmental Funds.................................................................................................................18 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position............................19 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds ........................20 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities ...................................................................................................................21

Proprietary Fund Financial Statements

Statement of Net Position – Proprietary Funds...................................................................................................23 Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds..............................24 Statement of Cash Flows – Proprietary Funds.....................................................................................................25

Notes to Financial Statements.................................................................................................................................26 Required Supplementary Information
Budgetary Comparison Schedule – General Fund ...............................................................................................70 Schedule of Changes in the District’s Total OPEB Liability and Related Ratios ...................................................71 Schedule of the District’s Proportionate Share of the Net OPEB Liability – MPP Program.................................72 Schedule of the District’s Proportionate Share of the Net Pension Liability.......................................................73 Schedule of the District Contributions.................................................................................................................75 Notes to Required Supplementary Information..................................................................................................77

Supplementary Information

Schedule of Expenditures of Federal Awards......................................................................................................79 Local Education Agency Organization Structure..................................................................................................81 Schedule of Instructional Time ............................................................................................................................82 Reconciliation of Annual Financial and Budget Report with Audited Financial Statements...............................83 Schedule of Financial Trends and Analysis ..........................................................................................................84 Schedule of Charter Schools ................................................................................................................................85 Combining Balance Sheet – Non‐Major Governmental Funds............................................................................86 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Non‐Major Governmental Funds....................................................................................................................................................................87 Notes to Supplementary Information..................................................................................................................88

Independent Auditor’s Reports

Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards.................................................................................................................................................................90

Clovis Unified School District Table of Contents
June 30, 2021

Independent Auditor’s Report on Compliance for Each Major Program and on Internal Control over Compliance Required by the Uniform Guidance.........................................................................................................................92

Independent Auditor’s Report on State Compliance...............................................................................................94 Schedule of Findings and Questioned Costs
Summary of Auditor’s Results..............................................................................................................................97 Federal Awards Findings and Questioned Costs................................................................................................100 State Compliance Findings and Questioned Costs.............................................................................................101 Summary Schedule of Prior Audit Findings........................................................................................................103

Independent Auditor’s Report

To the Governing Board Clovis Unified School District Clovis, California

Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Clovis Unified School District (the District) as of and for the year ended June 30, 2021, 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.

Auditor’s 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 auditor’s 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.

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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, each major fund, and the aggregate remaining fund information of Clovis Unified School District, as of June 30, 2021, 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.

Emphasis of Matter – Change in Accounting Principle and Correction of an Error
As discussed in Notes 1 and 17 to the financial statements, Clovis Unified School District has adopted the provisions of GASB Statement No. 84, Fiduciary Activities, which has resulted in a restatement of the net position and fund balance as of July 1, 2020. Additionally, an error was discovered in the current year related to net position reserves of the Self Insurance Fund that were previously recorded as liabilities. Our opinions are not modified with respect to this matter.

Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison information, schedule of changes in the District’s net OPEB liability and related ratios, schedule of the District’s proportionate share of the net OPEB liability – MPP program, schedule of the District’s proportionate share of the net pension liability, and the schedule of District contributions, 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 Clovis Unified School District’s financial statements. The combining non‐major governmental fund financial statements, Schedule of Expenditures of Federal Awards as required by the audit requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), and other supplementary information listed in the table of contents are presented for purposes of additional analysis and are not a required part of the financial statements.

The combining non‐major governmental fund financial statements, the schedule of expenditures of federal awards, and the other supplementary information listed in the table of contents 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

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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 combining non‐major governmental fund financial statements, the schedule of expenditures of federal awards, and the other supplementary information listed in the table of contents are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued a report dated [REPORT DATE] on our consideration of Clovis Unified School District’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, 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 Clovis Unified School 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 Clovis Unified School District’s internal control over financial reporting and compliance.
Preliminary Draft
For Discussion Purposes Only

Fresno, California [REPORT DATE]

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Management’s Discussion and Analysis June 30, 2021

This section of Clovis Unified School District’s (the District) annual financial report presents the management’s discussion and analysis of the District’s financial performance during the fiscal year that ended on June 30, 2021, with comparative information for the fiscal year ending June 30, 2020.

Financial Highlights

The District continued its long history of implementing conservative budgets and proactively addressing the volatility of the State of California’s revenues resulting in the District maintaining reserve levels well above the State’s minimum amount of two percent.

Overview of the Financial Statements

This annual report consists of three parts; management’s discussion and analysis (this section), the basic financial statements and required supplementary information. The basic financial statements include two kinds of statements that present different views of the District:

     The first two statements are government‐wide financial statements that provide both short‐term and long‐term information about the District’s overall financial status.
	 The remaining Fund statements are fund financial statements that focus on individual parts of the District, reporting the District’s operations in more detail than the government‐wide statements.
	The governmental funds statements tell how basic services like regular and special education were financed in the short term as well as what remains for future spending.
	 The proprietary fund statements report the activity of the self‐insurance fund for the year such as claims liability and revenues generated for services provided.

The financial statements also include notes that explain some of the information in the statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the financial statements with a comparison of the District’s budget for the year. Figure A‐1 shows how the various parts of this annual report are arranged and related to one another.

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Clovis Unified School District Management’s Discussion and Analysis June 30, 2021

Figure A‐1. Organization of Clovis Unified’s Annual Financial Report

Figure A‐2 summarizes the major features of the District’s financial statements, including the portion of the District’s activities they cover and the types of information they contain. The remainder of this overview section of management’s discussion and analysis highlights the structure and contents of each of the statements.

Figure A‐2. Major Features of the Government‐wide and Fund Financial Statements

Governmental Funds
	Proprietary Funds

Fund Statements Type of Statements	Government‐Wide

Scope

Required financial statements

Entire District

•Statement of net position

•Statement of activities

The activities of the District that are not, such as special education and building maintenance

•Balance sheet

•Statement of revenues, expenditures and changes in fund balances

The District’s self‐insurance fund accounts for the activity associated with the self‐ insured health and welfare, worker’s compensation and a portion of the retiree benefits.

•Statement of net position

•Statement of revenues, expenditures and changes in net position

•Reconciliation to	•Statement of Cash Flows government‐wide financial
statements

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Clovis Unified School District Management’s Discussion and Analysis June 30, 2021

Figure A‐2. Major Features of the Government‐wide and Fund Financial Statements

Type of Statements

Accounting basis and measurement focus

Type of asset/liability information

Type of inflow/outflow information

Government‐Wide

Accrual accounting and economic resources focus

All assets and liabilities both financial and capital, short‐term and long‐term

All revenues and expenses during year, regardless of when cash is received or paid

Fund Statement Governmental Funds

Modified accrual accounting and current financial resources focus

Only assets expected to be used up and liabilities that come due during the year or soon thereafter; no capital assets included

Revenues for which cash is received during or soon after the end of the year; expenditures when goods or services have been received and payment is due during the year or soon thereafter

GOVERNMENT‐WIDE STATEMENTS

The government‐wide statements report information about the District as a whole using accounting methods similar to those used by private‐sector companies. The statement of net position includes all of the District’s assets and liabilities. All of the current year’s revenues and expenses are accounted for in the statement of activities regardless of when cash is received or paid.

These two government‐wide statements report the District’s net position and how it has changed. Net position (the difference between assets and liabilities) is one way to measure the District’s financial health or financial position.

	 Over time, increases or decreases in the District’s net position are an indicator of whether its financial position is improving or deteriorating, respectively.

     To assess the overall health of the District, you need to consider additional nonfinancial factors such as changes in the District’s property tax base and the condition of school buildings and other facilities.

	In the government‐wide financial statements, the District’s activities are combined into one category.

	 Governmental activities ‐ The District’s basic services are included here, such as regular and special education, transportation, food services, adult education and administration. Property taxes, state formula aid, categorical funding and fees charged, finance most of these activities.

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Clovis Unified School District Management’s Discussion and Analysis June 30, 2021

FUND FINANCIAL STATEMENTS

The fund financial statements provide more detailed information about the District’s most significant funds, not the District as a whole. Funds are accounting devices the District uses to keep track of specific sources of funding and spending on particular programs. The District has two kinds of funds:

	 Governmental funds ‐ Most of the District’s basic services are included in governmental funds, which generally focus on (1) how cash and other financial assets, that can readily be converted to cash, flow in and out and (2) the balances left at year‐end that are available for spending. Consequently, the governmental funds statements provide a detailed short‐term view that helps you determine whether there are more or fewer financial resources that can be spent 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, we provide additional information at the bottom of the governmental funds statements that explain the relationship (or differences) between them.

 Proprietary funds ‐ When the District charges users for the services it provides, whether to outside customers or to other departments within the District, these services are generally reported in proprietary funds. Proprietary funds are reported in the same way that all activities are reported in the Statement of Net Position and the Statement of Revenues, Expenses, and Changes in Fund Net Position. We use internal service funds to report activities that provide supplies and services for the District’s other programs and activities, such as the District’s Self‐Insurance Fund. The internal service funds are reported with governmental activities in the government‐wide financial statements.

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Clovis Unified School District Management’s Discussion and Analysis June 30, 2021

FINANCIAL ANALYSIS OF THE DISTRICT AS A WHOLE

Net Position: The District’s combined net position was $42.8 million on June 30, 2021, increasing by $5.1 million (13.6 percent). (See Table A‐1.)

Table A‐1

Governmental Activities
2020
	2021	       	as Restated*	

Assets
Current and other assets Capital assets

Total assets

Deferred outflows of resources

Liabilities
Current liabilities Long‐term liabilities

Total liabilities

Deferred inflows of resources

Net Position
Net investment in capital assets Restricted
Unrestricted (deficit)

$ 523,289,108
	944,376,485 

 1,467,665,593 

	235,331,531 

82,330,711
 1,561,879,197 

 1,644,209,908 

	16,014,147 

616,463,623 162,260,944
	(735,951,498) 

$ 387,592,241
	956,642,591 

 1,344,234,832 

	203,448,856 

59,856,527
 1,422,404,098 

 1,482,260,625 

	27,786,144 

603,399,570 143,249,641
	(709,012,292)

Total net position	$	42,773,069	$	37,636,919

* The current and other assets, long‐term liabilities and restricted net position for fiscal year 2020 were restated to show the effects of GASB 84 for comparative purposes and restatements to the Self Insurance Fund.

Changes in Net Position: The District’s total governmental revenues were $669.8 million (see Table A‐2). Property taxes and state aid formula accounted for most of the District’s revenue, with federal and state aid contributing about $317.5 million and property taxes contributing about $140.3 million. Another $160.5 million came from categorical programs, $12.0 million came from capital grants, and the remainder came from fees charged for services of $20.5 million and miscellaneous sources of $18.9 million.

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Clovis Unified School District Management’s Discussion and Analysis June 30, 2021

The total cost of all governmental programs and services was $664.6 million (see Table A‐2). The District’s expenses are predominantly related to educating and caring for students (83 percent). The purely administrative activities of the District accounted for just four percent of total costs. Plant services was $56.8 million, accounting for nine percent of the District’s expenses. Revenues surpassed expenses, increasing net position by $3.9 million over last year predominately due to the additional Federal and State revenues the District received due to the COVID‐19 pandemic.

Table A‐2

Governmental Activities
	2021	       	2020*	

Revenues
Program revenues Charges for services
Operating grants and contributions Capital grants and contributions
General revenues
Federal and State aid not restricted Property taxes
Other general revenues

Total revenues

Expenses Instruction‐related Pupil services Administration Plant services Other

Total expenses

$ 20,544,008 160,506,670 11,981,645

317,559,675 140,332,472
	18,857,807 

	669,782,277 

467,123,801 80,891,363 28,064,367 56,972,702
	31,593,894 

	664,646,127 

$ 16,059,272 90,249,426 41,479,499

324,525,549 133,717,496
	39,691,018 

	645,722,260 

420,362,849 78,947,224 26,426,115 59,284,257
	32,777,974 

	617,798,419 

Change in net position	$	5,136,150	$ 27,923,841

* The revenues and expenses for fiscal year 2020 were not restated to show the effects of GASB 84 nor Self Insurance Fund restatements for comparative purposes.

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Clovis Unified School District Management’s Discussion and Analysis June 30, 2021

GOVERNMENTAL ACTIVITIES

The continued good health of the District’s finances can be credited to:

	Staffing formulas that maintain equality
	 Maintaining an awareness of the changing fiscal issues and active participation from the Employee Compensation Committee and Employee Benefit Committee
	Projecting a minimum of five years out on the multi‐year projection

Table A‐3 presents the cost of four major District activities: instruction, pupil services, administration, plant services and then all remaining categories. The table also shows each activity’s net cost (total cost less fees generated by the activities and intergovernmental aid provided for specific programs). The net cost shows the financial burden that was placed on the District’s taxpayers by each of these functions.

Table A‐3

	Total Cost of Services	
	2021	       	2020*	

	Net Cost of Services	
	2021	       	2020*	

Instruction Pupil services Administration Plant services
All other services

Total

$ 467,123,801 80,891,363 28,064,367 56,972,702
	31,593,894 

$ 664,646,127

$ 420,362,849 78,947,224 26,426,115 59,284,257
	32,777,974 

$ 617,798,419

$ (322,716,793) (57,960,156) (26,501,382) (44,268,831)
	(20,166,642)

$ (471,613,804)

$ (310,996,671) (57,313,087) (24,455,654) (56,890,567)
	(20,354,243) 

$ (470,010,222)

* The total cost of services and net cost of services for fiscal year 2020 were not restated to show the effects of GASB 84 nor Self Insurance Fund restatements for comparative purposes.

	The net cost of governmental activities this year was $(471.6) million as reflected on the Statement of Activities.
	Some of the costs were paid by the users of the District’s programs totaling $20.5 million.
	 The federal and state governments subsidized certain programs with operating grants and contributions totaling $160.5 million.
	Most of the District’s costs, $317.5 million, however, were paid for by District taxpayers and the taxpayers of California, in general.

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Clovis Unified School District Management’s Discussion and Analysis June 30, 2021

THE DISTRICT’S FUNDS

As the District completed this year, our governmental funds reported a combined fund balance of $381.9 million which is an increase of $109.4 million from last year (Table A‐4).

Table A‐4

	Balances and Activity	
Revenues and	Expenditures July 1, 2020	Other Financing           and Other
Governmental Funds	 as Restated*  	Sources	  Financing Uses  	June 30, 2021	

General
Student Activities Charter Schools Adult Education Child Development Cafeteria
Deferred Maintenance Building
Capital Facilities County School Facilities
Special Reserve Fund for Capital Outlay Projects
Bond Interest and Redemption COP Debt Service Fund

$ 131,081,879 2,276,488 5,877,876 3,884,458 784,305 7,324,999 68,963 4,348,353 18,058,604 35,758,616

15,467,962 47,524,715
	81,326 

$ 553,277,716 1,502,300 5,271,801 5,338,687 6,454,695 11,703,260 2,726,756 52,315,067 24,879,975 11,659,599

1,170,791 68,046,262
	2,847 

$ 521,016,864 1,521,919 3,954,602 5,612,934 5,969,673 13,087,308 2,137,078 5,514,468 2,742,988 7,116,191

1,257,545 64,973,248
	82,988 

$     163,342,731 2,256,869 7,195,075 3,610,211 1,269,327 5,940,951 658,641 51,148,952 40,195,591 40,302,024

15,381,208 50,597,729
	1,185 

Total	$ 272,538,544	$ 744,349,756	$ 634,987,806	$	381,900,494

* The beginning fund balance for fiscal year 2020 was restated to show the effects of GASB 84 for comparative purposes.

The primary reasons for the changes are:
a.     The fund balance in the General Fund increased $32.3 million to $163.3 million. The net increase is due to additional Federal and State revenue received because of the COVID‐19 pandemic.
b. The special revenue funds reported a net increase of $0.7 million with minimal changes across all funds except the Charter Schools Fund which had an increase of $1.3 million and the Cafeteria Fund which decreased by $1.4 million.
c.	The capital projects funds showed an increase of $73.4 million. This overall increase is due to
$12.0 million in State construction funding that was finally received for several past projects and $50.0 million in proceeds from a bond issuance.
d. The Bond Interest and Redemption Fund reported an increase of $3.0 million due to the bond issuance premium and property tax collections in excess of bond principal and interest payments.

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Clovis Unified School District Management’s Discussion and Analysis June 30, 2021

GENERAL FUND BUDGETARY HIGHLIGHTS

Over the course of the year the District revised the annual operating budget several times due to updated projections and actual costs. Following are highlights of the largest changes:

	Net increases in both revenue and expense for federal, state and local grant awards. 	Posting of deferred categorical revenue.
	 GASB Statement No. 68 requires the District to recognize the State's share of the District's unfunded CalSTRS liability. This resulted in a revenue and expenditure adjustment of $1.2 million.
	Decrease in Fee‐based program revenue due to the COVID‐19 pandemic.

	The Adopted Budget's revenues over expenditures resulted in the District anticipating a deficit of $14.3 million. The Adopted Budget was structured in such a way that the District could manage any
changes from the State. It was also developed under the assumptions released with the Governor’s May Revision projecting a negative COLA (‐7.92%) for the LCFF.
	 For the first time in several years, the District is experiencing declining enrollment. The decline is directly related to the pandemic. The projected ADA growth at Adopted Budget was 196. Due to the pandemic districts were held harmless and funded on 2019‐20 P‐2 ADA. ADA was not reported to the State during the 2020‐21 fiscal year. The District projects the 2020‐21 ADA decline to be approximately 951 compared to 2019‐20.
	 Actual revenues to expenditures resulted in a surplus of $32.3 million, however $4.9 million of the fund balance is non‐spendable, $23.7 million is restricted for restricted programs and $18.7 million is assigned for site and department carryover, student computer refresh, textbooks and LCAP Supplemental programs.
	 District recognized $60.5 million in COVID‐19 relief revenues from the State and Federal government during the 2020‐21 fiscal year.

CAPITAL ASSET AND DEBT ADMINISTRATION

Capital Assets

By June 30, 2021, the District had invested $944.4 million in a broad range of capital assets, including school buildings, athletic facilities, computer and audio visual equipment, and administrative offices. (See Table A‐5.) This amount represents a net decrease of $12.3 million or 1.3 percent over last year. Total depreciation expense for the year was $30.7 million.

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Clovis Unified School District Management’s Discussion and Analysis June 30, 2021

Table A‐5

Governmental Activities
	2021	       	2020	

Land and construction in progress Buildings and improvements Equipment

Total

$ 110,349,294 797,850,068
	36,177,123 

$ 944,376,485

$ 151,026,515 768,519,569
	37,096,507 

$ 956,642,591

The District has work in progress related to modernization projects at multiple district sites as well as new construction. In addition, several equipment purchases such as several passenger buses, a truck, a cargo van, mowers and a forklift.

The District received $12.0 million state facility revenue for projects completed several years ago. The District was able to proceed with planned modernizations due to the receipt of these funds.

The District opened Janet Young Elementary School in August 2021. The new site was funded with Developer Fee and bond revenues. The project cost $38.8 million in its entirety. Continued support from the community resulted in a successful 2020 bond campaign. Measure A will provide $335 million to support capital improvements. The majority will be allocated to the design and construction of Terry Bradley Educational Center.

Long‐Term Liabilities

At year‐end the District had $1.6 billion in long‐term liabilities outstanding discussed below. This is an increase of 9.9 percent from last year, as shown in Table A‐6.

Table A‐6

Governmental Activities
	2021	       	2020	

Long‐Term Liabilities General obligation bonds
Certificates of participation Unamortized premiums/(discounts) Capital leases
Compensated absences Claims liability
Total OPEB liability
Aggregate net pension liability

Total

$      477,575,863 2,420,000 9,321,185 12,660,179 4,185,913 28,136,235 495,131,989
	532,447,833 

$ 1,561,879,197

$     452,098,291 1,538,005 8,362,287 13,867,888 3,473,663 28,750,028 424,477,600
	489,521,762 

$ 1,422,089,524

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Clovis Unified School District Management’s Discussion and Analysis June 30, 2021

The District’s S&P bond rating as of the most recent bond issuance was “AA” and “A‐1+” for the most recent refunding bond issuance. In addition, the District’s certificates of participation S&P rating at the time of their last issuance was “AA”.

At year‐end, the District has a net pension liability of $532.4 million versus $489.5 million last year, an increase of $42.9 million, or 8.8 percent. The District also reported Deferred Outflows (asset) from pension activities of $125.8 million, and Deferred Inflows (liability) from pension activities of $15.8 million. The net impact on the Districts net position of these pension related items is $(422.4) million.

The District also has recognized a deferred outflow of resources (asset) of $106.2 million related to its other postemployment benefits which helps to offset the obligations impact on the total net position of the District.

FACTORS BEARING ON THE DISTRICT’S FUTURE

At the time these financial statements were prepared and audited, the District was aware of the following circumstances that could significantly affect its financial health in the future:

	 The COVID‐19 pandemic has posed economic challenges as it relates to school funding. The path to full recovery remains unknown. The District will continue to monitor and utilize the resources available to ensure financial solvency. Clovis Unified remains prepared to continue to provide high quality service to our students. The District closed the year with a 22.43 percent General Reserve.
	The State’s Local Control Funding Formula (LCFF) accounts for 78 percent of the District’s General Fund revenues during a normal year. Due to the amount of one‐time revenues received during the 2020‐21 fiscal year, the LCFF accounted for 71.5 percent.
	 The LCFF attempts to fund students based on their needs related to household income, English language learner, homeless or foster youth. This portion of a district’s student population is referred to as the unduplicated pupil percentage (UPP). Clovis Unified’s UPP averages 42‐45 percent, making the District eligible for the LCFF Base and Supplemental Grants only; the District is not eligible for the Concentration Grant. The District receives the least amount of funding per ADA in Fresno County due to its low UPP.
	 Enrollment growth and student attendance is key to the District’s financial projections. The District has consistently seen growth over the years and anticipated this trend to continue pre‐pandemic. There is a significant amount of residential development within District boundaries and the District anticipates the declining enrollment experienced this year to be short lived. Enrollment growth continues to be projected conservatively on the multi‐year projection.
	 The Clovis Unified population of students with disabilities has grown an average of 3.0 percent annually over the previous five years.
	 The state and federal government have never fully funded special education. The District is actively involved in advocating for increased funding from the State and Federal Governments.

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Clovis Unified School District Management’s Discussion and Analysis June 30, 2021

CONTACTING THE DISTRICT’S FINANCIAL MANAGEMENT

This financial report is designed to provide our citizens, taxpayers, customers, and investors and creditors with a general overview of the District’s finances and to demonstrate the District’s accountability for the money it receives. If you have questions about this report or need additional financial information, contact the Business Office, Clovis Unified School District, 1450 Herndon Avenue, Clovis, California 93611.

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Clovis Unified School District Statement of Net Position
June 30, 2021

Governmental
	Activities	

Assets
Deposits and investments Receivables
Stores inventories
Capital assets not depreciated
Capital assets, net of accumulated depreciation

Total assets

Deferred Outflows of Resources Deferred charge on refunding
Deferred outflows of resources related to OPEB Deferred ou lows of resources related to pensions

Total deferred ou lows of resources

Liabilities Overdrafts
Accounts payable Unearned revenue Short‐term loans Long‐term liabilities
Long‐term liabilities other than OPEB and pensions due within one year Long‐term liabilities other than OPEB and pensions due in more than one year Net other postemployment benefits liability (OPEB)
Aggregate net pension liabilities

Total liabilities

Deferred Inflows of Resources Deferred charge on refunding
Deferred inflows of resources related to pensions

Total deferred inﬂows of resources

Net Position
Net investment in capital assets
Restricted for Debt service
Capital projects Educational programs Child nutrition Student activities
Unrestricted (deficit)

$ 450,738,881 69,188,319 3,361,908 110,349,294
	834,027,191 

	1,467,665,593 

3,272,447 106,221,771
	125,837,313 

	235,331,531 

106,020 41,999,770 5,964,921 34,260,000

39,174,179 495,125,196 495,131,989
	532,447,833 

	1,644,209,908 

215,417
	15,798,730 

	16,014,147 

616,463,623

50,598,914 80,497,615 23,898,323 5,009,223 2,256,869
	(735,951,498) 

Total net position	$	42,773,069

See Notes to Financial Statements	16

Clovis Unified School District Statement of Activities
Year Ended June 30, 2021

Net (Expenses)
Revenues and
	Program Revenues	        Changes in
Charges for	Operating	Capital	     Net Position     
Services and	Grants and	Grants and	Governmental
	Functions/Programs	 	Expenses	 	Sales	  Contributions   Contributions  	Activities	

Governmental Activities
Instruction	$390,180,923	$	9,141	$112,529,348	$11,981,645	$(265,660,789) Instruction‐related activities
Supervision of instruction	28,958,288	‐	16,000,054	‐	(12,958,234) Instructional library, media,
and technology                                  9,763,842                             ‐                 621,983                            ‐              (9,141,859) School site administration                   38,220,748                             ‐              3,264,837                            ‐            (34,955,911)
Pupil services
Home‐to‐school transportation	12,142,588	‐	932,855	‐	(11,209,733) Food services	13,776,697                  67,916           11,748,496	‐              (1,960,285) All other pupil services	54,972,078	‐           10,181,940	‐	(44,790,138)
Administration
Data processing                                       6,134,904                             ‐                   23,059                            ‐              (6,111,845) All other administration                       21,929,463                    2,949              1,536,977                            ‐            (20,389,537)
Plant services	56,972,702	11,753,460	950,411	‐	(44,268,831) Ancillary services	10,138,674                             ‐              1,558,290	‐              (8,580,384) Community services                                         726,145                             ‐                              ‐	‐                 (726,145) Enterprise services                                              49,084                             ‐                              ‐	‐                   (49,084) Interest on long‐term liabilities	19,548,746                             ‐                              ‐	‐	(19,548,746)
Other outgo	          1,131,245  	8,710,542  	1,158,420  	‐  	8,737,717 

Total governmental
activities	 $664,646,127   $ 20,544,008   $160,506,670   $11,981,645  	(471,613,804)

General Revenues and Subventions
Property taxes, levied for general purposes Property taxes, levied for debt service Taxes levied for other specific purposes
Federal and State aid not restricted to specific purposes Interest and investment earnings
Interagency revenues Special and extraordinary Miscellaneous

Subtotal, general revenues

Change in Net Position

Net Position ‐ Beginning, as Restated

Net Position ‐ Ending

See Notes to Financial Statements

93,061,318 46,776,338 494,816 317,559,675 590,634 1,345,939 1,711,295
	15,209,939 

	476,749,954 

5,136,150

	37,636,919 

 $     42,773,069 

17

Clovis Unified School District Balance Sheet – Governmental Funds June 30, 2021

Assets
Deposits and investments Receivables
Due from other funds Stores inventories

Total assets

Liabilities and Fund Balances

General Fund

$174,263,797 66,133,674 99,999 2,383,166

$242,880,636

Building Fund

52,107,310 ‐
116,295 ‐

$52,223,605

Bond Interest and Redemption Fund

50,597,729 ‐ ‐ ‐

$50,597,729

Non‐Major Governmental Funds

$115,564,588 2,002,557 1,544,309 978,742

$120,090,196

Total Governmental Funds

392,533,424 68,136,231 1,760,603 3,361,908

$465,792,166

Liabilities Overdrafts
Accounts payable Due to other funds
Other current liabilities Unearned revenue

$                       ‐ 35,440,873 3,872,111 34,260,000 5,964,921

$                    ‐       $ 716,681 357,972
‐ ‐

‐	$	106,020 ‐              2,584,383 ‐                  588,711 ‐                               ‐ ‐                               ‐

$         106,020 38,741,937 4,818,794 34,260,000 5,964,921

Total liabilities

Fund Balances Nonspendable Restricted Committed Assigned Unassigned

Total fund balances

Total liabilities and fund balances

79,537,905

2,527,166 23,261,525 ‐ 20,700,533 116,853,507

163,342,731

$242,880,636

1,074,653

‐ 51,148,952 ‐
‐ ‐

51,148,952

$52,223,605

‐

‐ 50,597,729 ‐
‐ ‐

50,597,729

$50,597,729

3,279,114

982,242 103,782,898 4,218,338 7,827,604
‐

116,811,082

$120,090,196

83,891,672

3,509,408 228,791,104 4,218,338 28,528,137 116,853,507

381,900,494

$465,792,166

See Notes to Financial Statements	18

Clovis Unified School District Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position
June 30, 2021

Total Fund Balance ‐ Governmental Funds

Amounts Reported for Governmental Activities in the Statement of Net Posi on are Diﬀerent Because

Capital assets used in governmental activities are not financial resources and, therefore, are not reported as assets in governmental funds.
The cost of capital assets is Accumulated depreciation is

Net capital assets

Deferred outflows of resources represent a consumption of net position in a future period and is not reported in the governmental funds. Deferred outflows of resources amounted to and related to
Debt refundings (deferred charge on refunding) Other postemployment benefits (OPEB)
Net pension liability

Total deferred outflows of resources

Deferred inflows of resources represent an acquisition of net position that applies to a future period and is not reported in the governmental funds. Deferred inflows of resources amount to and related to
Debt refundings (deferred charge on refunding) Net pension liability

Total deferred inflows of resources

Net pension liability is not due and payable in the current period, and is not reported as a liability in the funds.

1,397,359,792
	(452,983,307)

3,272,447 106,221,771
	125,837,313 

(215,417)
	(15,798,730)

$ 381,900,494

944,376,485

235,331,531

(16,014,147)

(532,447,833)

The District’s OPEB liability is not due and payable in the current period,
and is therefore reflected as a long term obligation.	(495,131,989)

Long‐term liabilities are not due and payable in the current period and, therefore, are not reported as liabilities in the funds. Long‐term liabilities at year‐end consist of
General obligation bonds Certificates of participation Capital leases
Compensated absences (vacations) Unamortized premiums and discounts, net
In addition, capital appreciation general obligation bonds were issued. The accretion of interest to date on the general obligation bonds is

Total long‐term liabilities

(373,098,688) (2,420,000) (12,660,179) (4,185,913) (9,321,185)

	(104,477,175)

	(506,163,140)

Total net position ‐ governmental activities	$ 42,773,069

See Notes to Financial Statements	19

Clovis Unified School District Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds
Year Ended June 30, 2021

Revenues
Local Control Funding Formula Federal sources
Other State sources Other local sources

Total revenues

Expenditures Current
Instruction Instruction‐related activities
Supervision of instruction Instructional library, media,
and technology School site administration
Pupil services
Home‐to‐school transportation Food services
All other pupil services Administration
Data processing
All other administration Plant services
Ancillary services Other outgo
Facility acquisition and construction Debt service
Principal
Refunding issuance costs Interest and other

Bond
Interest and	Non‐Major	Total General	Building	Redemption         Governmental       Governmental
	Fund	 	Fund	 	Fund	 	Funds	 	Funds	

$ 395,449,309       $                        ‐       $                        ‐       $      4,740,289       $ 400,189,598 45,759,575                                ‐                                ‐             11,972,366             57,731,941 100,006,366                                ‐                  316,794             21,495,550          121,818,710
	10,920,091  	1,015,566  	46,311,173  	28,368,584  	86,615,414 

	552,135,341  	1,015,566  	46,627,967  	66,576,789  	666,355,663 

315,715,853	‐	‐	9,102,047	324,817,900

27,040,564	‐	‐	478,462	27,519,026

7,214,871                                ‐                                ‐                  225,271               7,440,142 28,808,542                                ‐                                ‐               2,308,648             31,117,190

13,704,855                                ‐                                ‐                                ‐             13,704,855 580,000                                ‐                                ‐             12,538,326             13,118,326 42,632,183                                ‐                                ‐               1,145,406             43,777,589

5,659,625                                ‐                                ‐                                ‐               5,659,625 18,473,767                                ‐                                ‐               1,217,989             19,691,756 48,423,356                   163,169                                ‐               3,841,057             52,427,582 5,141,807                                ‐                                ‐               1,521,919               6,663,726 1,131,244                                ‐                                ‐                                ‐               1,131,244 1,485,670               3,410,331                                ‐               9,458,699             14,354,700

892,710                   710,000             36,095,000                   315,000             38,012,710 ‐                                ‐                  149,105                                ‐                  149,105
	35,296  	514,369  	8,913,472  	‐  	9,463,137 

Total expenditures	516,940,343	4,797,869	45,157,577	42,152,824	609,048,613

Excess (Deficiency) of Revenues Over Expenditures

Other Financing Sources (Uses) Transfers in
Proceeds from sale of general obligation bonds
Proceeds from general obligation refunding bonds
Payments to escrow for refunding debt Premium on bond issuance
Transfers out

Net Financing Sources (Uses)

	35,194,998  	(3,782,303)  	1,470,390  	24,423,965  	57,307,050 

1,142,375	937,001	‐	4,133,922	6,213,298

‐	50,000,000	‐	‐	50,000,000

‐                                              19,875,000                                ‐             19,875,000 ‐                                            (19,725,895)                               ‐           (19,725,895) ‐                  362,500               1,543,295                                ‐               1,905,795
	(4,076,521)  	(716,599)  	(89,776)  	(1,330,402)  	(6,213,298) 

	(2,934,146)  	50,582,902  	1,602,624  	2,803,520  	52,054,900 

Net Change in Fund Balances

Fund Balance ‐ Beginning, as Restated

Fund Balance ‐ Ending

32,260,852

131,081,879

$ 163,342,731

46,800,599

4,348,353

$ 51,148,952

3,073,014

47,524,715

$ 50,597,729

27,227,485

89,583,597

$ 116,811,082

109,361,950

272,538,544

$ 381,900,494

See Notes to Financial Statements	20

Clovis Unified School District Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental
Funds to the Statement of Activities Year Ended June 30, 2021

Total Net Change in Fund Balances ‐ Governmental Funds	$ 109,361,950

Amounts Reported for Governmental Activities in the Statement of Activities are Different Because

Capital outlays 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 depreciation exceed capital outlays in the period.
Depreciation expense Capital outlays

Net expense adjustment

$ (30,685,635)
	18,432,185 

(12,253,450)

The District issued capital appreciation general obligations bonds. The accretion of interest on the general obligation bonds during the current fiscal year was

Loss(Gain) on disposal of capital assets is reported in the government‐wide Statement of Net Position, but is not recorded in the governmental
funds.

In the Statement of Ac vi es, certain opera ng 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). This amount is the difference between vacation earned and used.

In the governmental funds, pension costs are based on employer contributions made to pension plans during the year. However,
in the Statement of Activities, pension expense is the net effect of all changes in the deferred outflows, deferred inflows and net pension liability during the year.

In the governmental funds, OPEB costs are based on employer contributions made to OPEB plans during the year. However, in the
Statement of Activities, OPEB expense is the net effect of all changes
in the deferred outflows, deferred inflows, and net OPEB liability during the year.

Proceeds received from general obligation bonds or certificates of participation are a revenue in the governmental funds, but increase long‐term liabilities in the Statement of Net Position and do not affect the Statement of Activities.

See Notes to Financial Statements

(10,346,665)

(12,656)

(712,250)

(39,185,728)

(31,405,069)

(71,342,053)

21

Clovis Unified School District Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental
Funds to the Statement of Activities Year Ended June 30, 2021

Deferred charge on refunding (the difference between the reacquisition price and the net carrying amount of the refunded debt) are capitalized and amortized over the remaining life of the new or old debt, whichever is shorter.

Governmental funds report the effect of premiums, discounts, and the deferred charge on refunding when the debt is first issued, whereas the amounts are deferred and amortized in the Statement of Activities.
Premium on issuance recognized Premium amortization
Discount amortization
Deferred charge on refunding amortization

Payment of principal on long‐term liabilities is an expenditure in the governmental funds, but it reduces long‐term liabilities in the Statement of Net Position and does not affect the Statement
of Activities.
General obligation bonds Certificates of participation Capital leases

An internal service fund is used by management to charge the costs of the self insurance program to the individual funds. The net revenue of the Internal Service Fund is reported with governmental activities.

1,076,801

(1,905,795) 976,229
(29,332) (411,792)

54,744,093 585,058
	1,207,709 

	4,789,100 

Change in net position of governmental activities	$	5,136,150

See Notes to Financial Statements	22

Clovis Unified School District Statement of Net Position – Proprietary Funds June 30, 2021

Internal
	Service	
Self Insurance
	Fund	

Assets
Current assets
Deposits and investments Receivables
Due from other funds

Total assets

Liabilities
Current liabilities Accounts payable

Noncurrent liabilities Claims liabilities

Total liabilities

Net Position
Unrestricted ‐ designated for excess reserves
Unrestricted ‐ designated for postemployment benefit claims Unrestricted ‐ designated for other claims

$ 58,205,457 1,052,088
	3,058,191 

	62,315,736 

	3,257,833 

	28,136,235 

	31,394,068 

6,548,426 23,416,666
	956,576 

Total net position	$ 30,921,668

See Notes to Financial Statements	23

Clovis Unified School District Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds
Year Ended June 30, 2021

Internal
	Service	
Self Insurance
	Fund	

Operating Revenues Charges for services

Total operating revenues

Operating Expenses Payroll costs
Supplies and materials
Claim payments and adjustments

Total operating expenses

Operating Income

Nonoperating Revenues Investment earnings

Change in Net Position

Total Net Position ‐ Beginning

 $ 78,067,784 

	78,067,784 

365,938 565,888
	71,845,646 

	72,777,472 

	5,290,312 

	(501,212) 

4,789,100

	26,132,568 

Total Net Position ‐ Ending	$ 30,921,668

See Notes to Financial Statements	24

Clovis Unified School District Statement of Cash Flows – Proprietary Funds Year Ended June 30, 2021

Internal
	Service	
Self Insurance
	Fund	

Operating Activities
Cash receipts from interfund services provided
Cash payments to other suppliers of goods or services Cash payments to employees for services
Cash payments claims and adjustments

Net Cash From Operating Activities

Noncapital Financing Activities Investment earnings

Net Change in Cash and Cash Equivalents

Cash and Cash Equivalents, Beginning

$ 77,929,375 (565,888) (365,938)
	(72,677,593) 

	4,319,956 

	(501,212) 

3,818,744

	54,386,713 

Cash and Cash Equivalents, Ending	$ 58,205,457

Reconciliation of Operating Loss to Net Cash From Operating Activities
Operating income
Changes in assets and liabilities Receivables
Due from other fund Accounts payable
Incurred but not reported claims

$	5,290,312

449,208 (587,617)
96,420
	(928,367) 

Net Cash From Operating Activities	$	4,319,956

See Notes to Financial Statements	25

Clovis Unified School District Notes to Financial Statements
June 30, 2021

Note 1 ‐	Summary of Significant Accounting Policies

Financial Reporting Entity

The Clovis Unified School District (the District) was established in 1960 under the laws of the State of California. The District operates under a locally elected seven‐member Board form of government and provides educational services to grades K ‐ 12 as mandated by the State and/or Federal agencies. The District operates thirty‐three elementary schools, five intermediate schools, five high schools, three alternative education schools, one adult school, the Clovis Online Charter School, and the Center for Advanced Research and Technology as a joint high school with Fresno Unified School District.

A reporting entity is comprised of the primary government and other organizations that are included to ensure the financial statements are not misleading. The primary government of the District consists of all funds, departments, boards, and agencies that are not legally separate from the District. For Clovis Unified School District, this includes general operations, food service, and student related activities of the District.

Charter School

The District has approved a charter for Clovis Online Charter School pursuant to Education Code Section 47605. The Clovis Online Charter School is operated by the District, and its financial activities are presented in the Charter School Fund.

Basis of Presentation ‐ Fund Accounting

The accounting system is organized and operated on a fund basis. A fund is defined as a fiscal and accounting entity with a self‐balancing set of accounts, which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations. The District’s funds are grouped into two broad fund categories: governmental, and proprietary.

Governmental Funds Governmental funds are those through which most governmental functions typically are financed. Governmental fund reporting focuses on the sources, uses, and balances of current financial resources. Expendable assets are assigned to the various governmental funds according to the purposes for which they may or must be used. Current liabilities are assigned to the fund from which they will be paid. The difference between governmental fund assets and liabilities is reported as fund balance. The following are the District’s major and non‐major governmental funds:

Major Governmental Funds

General Fund The General Fund is the chief operating fund for all districts. It is used to account for the ordinary operations of the District. All transactions except those accounted for in another fund are accounted for in this fund. Due to GASB 84, the District has consolidated the Warrant Pass‐Through Fund, for financial reporting purposes, while keeping the funds and related activities separate for internal reporting purposes. As a result, the General Fund reflects an increase in assets and liabilities of $933,284.

26

Clovis Unified School District Notes to Financial Statements
June 30, 2021

Building Fund The Building Fund exists primarily to account separately for proceeds from the sale of bonds (Education Code Section 15146) and may not be used for any purposes other than those for which the bonds were issued.

Bond Interest and Redemption Fund The Bond Interest and Redemption Fund is used for the repayment of bonds issued for a district (Education Code Sections 15125‐15262).

Non‐Major Governmental Funds

Special Revenue Funds The Special Revenue funds are used to account for the proceeds from specific revenue sources (other than trusts, major capital projects, or debt service) that are restricted or committed to the financing of particular activities, that compose a substantial portion of the inflows of the fund, and that are reasonably expected to continue. Additional resources that are restricted, committed, or assigned to the purpose of the fund may also be reported in the fund.

 Student Activities Fund The Student Activities Fund is used to account separately for the operating activities of the associated student body accounts that are not fiduciary in nature, including student clubs, general operations, athletics, and other student body activities.

 Charter School Fund The Charter School Fund may be used by authorizing districts to account separately for the operating activities of district‐operated charter schools that would otherwise be reported in the authorizing District’s General Fund.

 Adult Education Fund The Adult Education Fund is used to account separately for Federal, State, and local revenues that are restricted or committed for adult education programs and is to be expended for adult education purposes only.

 Child Development Fund The Child Development Fund is used to account separately for Federal, State, and local revenues to operate child development programs and is to be used only for expenditures for the operation of child development programs.

 Cafeteria Fund The Cafeteria Fund is used to account separately for Federal, State, and local resources to operate the food service program (Education Code Sections 38090‐38093) and is used only for those expenditures authorized by the governing board as necessary for the operation of the District’s food service program (Education Code Sections 38091 and 38100).

 Deferred Maintenance Fund The Deferred Maintenance Fund is used to account separately for revenues that are restricted or committed for deferred maintenance purposes (Education Code Section 17582).

27

Clovis Unified School District Notes to Financial Statements
June 30, 2021

Capital Project Funds The Capital Project funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities and other capital assets (other than those financed by proprietary funds and trust funds).

 Building Fund The Building Fund exists primarily to account separately for proceeds from the sale of bonds (Education Code Section 15146) and may not be used for any purposes other than those for which the bonds were issued.

 Capital Facilities Fund The Capital Facilities Fund is used primarily to account separately for monies received from fees levied on developers or other agencies as a condition of approval (Education Code Sections 17620‐17626 and Government Code Section 65995 et seq.). Expenditures are restricted to the purposes specified in Government Code Sections 65970‐65981 or to the items specified in agreements with the developer (Government Code Section 66006).

 County School Facilities Fund The County School Facilities Fund is established pursuant to Education Code Section 17070.43 to receive apportionments from the 1998 State School Facilities Fund (Proposition 1A), the 2002 State School Facilities Fund (Proposition 47), the 2004 State School Facilities Fund
(Proposition 55), the 2006 State School Facilities Fund (Proposition 1D), or the 2016 State School Facilities Fund (Proposition 51), authorized by the State Allocation Board for new school facility construction, modernization projects, and facility hardship grants, as provided in the Leroy F. Greene School Facilities Act of 1998 (Education Code Section 17070 et seq.).

 Special Reserve Fund for Capital Outlay Projects The Special Reserve Fund for Capital Outlay Projects exists primarily to provide for the accumulation of General Fund monies for capital outlay purposes (Education Code Section 42840).

Debt Service Funds The Debt Service funds are used to account for the accumulation of resources for, and the payment of, principal and interest on general long‐term obligations.

 Other Debt Service Fund The Other Debt Service Fund is used to account for the accumulation of resources for the payment of principal and interest on certificates of participation or capital lease obligations of the District.

Proprietary Funds Proprietary funds are used to account for activities that are more business‐like than government‐like in nature. Business‐type activities include those for which a fee is charged to external users or to other organizational units of the local education agency, normally on a full cost‐recovery basis. Proprietary funds are generally intended to be self‐supporting and are classified as enterprise or internal service. The District has the following proprietary fund:

 Internal Service Fund Internal Service funds may be used to account for goods or services provided to other funds of the District on a cost‐reimbursement basis. The District operates a Self Insurance Fund that is accounted for in an internal service fund that accounts for the costs associated with the District’s self‐ insurance programs and its retiree benefits.

28

Clovis Unified School District Notes to Financial Statements
June 30, 2021

Basis of Accounting ‐ Measurement Focus

Government‐Wide Financial Statements The government‐wide financial statements are prepared using the economic resources measurement focus and the accrual basis of accounting. This is the same approach used in the preparation of the proprietary fund financial statements, but differs from the manner in which governmental fund financial statements are prepared.

The government‐wide statement of activities presents a comparison between expenses, both direct and indirect, and for each governmental function, and exclude fiduciary activity. Direct expenses are those that are specifically associated with a service, program, or department and are therefore, clearly identifiable to a particular function. The District does not allocate indirect expenses to functions in the Statement of Activities, except for depreciation. Program revenues include charges paid by the recipients of the goods or services offered by the programs and grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues are presented as general revenues. The comparison of program revenues and expenses identifies the extent to which each program or business segment is self‐financing or draws from the general revenues of the District. Eliminations have been made to minimize the double counting of internal activities.

Net position should be reported as restricted when constraints placed on net position are either externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments or imposed by law through constitutional provisions or enabling legislation. The net position restricted for other activities result from special revenue funds and the restrictions on their use.

Fund Financial Statements Fund financial statements report detailed information about the District. The focus of governmental and proprietary fund financial statements is on major funds rather than reporting funds by type. Each major fund is presented in a separate column. Non‐major funds are aggregated and presented in a single column. The internal service fund is presented in a single column on the face of the proprietary fund statements.

 Governmental Funds All governmental funds are accounted for using the flow of current financial resources measurement focus and the modified accrual basis of accounting. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. The statement of revenues, expenditures, and changes in fund balances reports on the sources (revenues and other financing sources) and uses (expenditures and other financing uses) of current financial resources. This approach differs from the manner in which the governmental activities of the government‐wide financial statements are prepared. Governmental fund financial statements, therefore, include reconciliations with brief explanations to better identify the relationship between the government‐wide financial statements, prepared using the economic resources measurement focus and the accrual basis of accounting, and the governmental fund financial statements, prepared using the flow of current financial resources measurement focus and the modified accrual basis of accounting.

 Proprietary Funds Proprietary funds are accounted for using the flow of economic resources measurement focus and the accrual basis of accounting. All assets and all liabilities associated with the operation of this fund are included in the statement of net position. The statement of changes in fund net position presents increases (revenues) and decreases (expenses) in net total assets. The statement of cash flows provides information about how the District finances and meets the cash flow needs of its proprietary fund.

29

Clovis Unified School District Notes to Financial Statements
June 30, 2021

Revenues – Exchange and Non‐Exchange Transactions Revenue resulting from exchange transactions, in which each party gives and receives essentially equal value, is recorded on the accrual basis when the exchange takes place. On a modified accrual basis, revenue is recorded in the fiscal year in which the resources are measurable and become available. Available means that the resources will be collected within the current fiscal year or are expected to be collected soon enough thereafter, to be used to pay liabilities of the current fiscal year. The District considers revenues to be available if they are collected within one year after year‐end, except for property taxes, which are considered available if collected within 60 days. The following revenue sources are considered to be both measurable and available at fiscal year‐end: State apportionments, interest, certain grants, and other local sources.

Non‐exchange transactions, in which the District receives value without directly giving equal value in return, include property taxes, certain grants, entitlements, and donations. Revenue from property taxes is recognized in the fiscal year in which the taxes are received. Revenue from certain grants, entitlements, and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. Eligibility requirements include time and purpose restrictions. On a modified accrual basis, revenue from non‐exchange transactions must also be available before it can be recognized.

Unearned Revenue Unearned revenues arise when resources are received by the District before it has a legal claim to them, such as when certain grants are received prior to the occurrence of qualifying expenditures. In the subsequent periods, when the District has a legal claim to the resources, the liability for unearned revenue is removed from the balance sheet and the revenue is recognized.

Expenses/Expenditures On the accrual basis of accounting, expenses are recognized at the time they are incurred. The measurement focus of governmental fund accounting is on decreases in net financial resources (expenditures) rather than expenses. Expenditures are generally recognized in the accounting period in which the related fund liability is incurred. Principal and interest on long‐term liabilities, which has not matured, are recognized when paid in the governmental funds as expenditures. Allocations of costs, such as depreciation and amortization, are not recognized in the governmental funds but are recognized in the entity‐wide statements.

Cash and Cash Equivalents

The District’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short‐term investments with original maturities of three months or less from the date of acquisition. Cash equivalents also include cash with county treasury balances for purposes of the statement of cash flows.

Investments

Investments with original maturities greater than one year are stated at fair value. Fair value is estimated based on quoted market prices at year‐end. All investments not required to be reported at fair value are stated at cost or amortized cost. Fair values of investments in county and State investment pools are determined by the program sponsor.

Prepaid Expenditures (Expenses)

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government‐wide and fund financial statements. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased.

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Clovis Unified School District Notes to Financial Statements
June 30, 2021

Stores Inventories

Inventories consist of expendable food and supplies held for consumption. Inventories are stated at cost, on the first‐in, first‐out basis. The costs of inventory items are recorded as expenditures in the governmental funds and expenses in the proprietary fund when consumed rather than when purchased.

Capital Assets and Depreciation

The accounting and reporting treatment applied to the capital assets associated with a fund are determined by its measurement focus. Capital assets are long‐lived assets of the District. The District maintains a capitalization threshold of $25,000. The District does not possess any infrastructure. Improvements are capitalized; the costs of normal maintenance and repairs that do not add to the value of the asset or materially extend an asset’s life are not capitalized, but are expensed as incurred.

When purchased, such assets are recorded as expenditures in the governmental funds and capitalized in the government‐wide statement of net position. The valuation basis for capital assets is historical cost, or where historical cost is not available, estimated historical cost based on replacement cost. Donated capital assets are capitalized at acquisition value on the date donated.

Depreciation is computed using the straight‐line method. Estimated useful lives of the various classes of depreciable capital assets are as follows: buildings, 20 to 50 years; improvements/infrastructure, 5 to 50 years; equipment, 5 to 15 years.

Interfund Balances

On fund financial statements, receivables and payables resulting from short‐term interfund loans are classified as “interfund receivables/payables”. These amounts are eliminated in the governmental activities column of the statement of net position, except for the net residual amounts due between governmental and business‐type activities which are presented as internal balances.

Compensated Absences

Compensated absences are accrued as a liability as the benefits are earned. The entire compensated absence liability is reported on the government‐wide statement of net position as long‐term obligations.

Sick leave is accumulated without limit for each employee at the rate of one day for each month worked. Leave with pay is provided when employees are absent for health reasons; however, the employees do not gain a vested right to accumulated sick leave. Employees are never paid for any sick leave balance at termination of employment or any other time. Therefore, the value of accumulated sick leave is not recognized as a liability in the District’s financial statements. However, credit for unused sick leave is applicable to all classified school members who retire after January 1, 1999. At retirement, each member will receive .004 year of service credit for each day of unused sick leave. Credit for unused sick leave is applicable to all certificated employees and is determined by dividing the number of unused sick days by the number of base service days required to complete the last school year, if employed full‐time.

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Clovis Unified School District Notes to Financial Statements
June 30, 2021

Accounts Payable and Long‐Term Liabilities

Accounts payable and long‐term liabilities are reported in the government‐wide and proprietary fund financial statements. In general, governmental fund accounts payable that are paid in a timely manner and in full from current financial resources are reported as liabilities of the funds.

Deferred Outflows/Inflows of Resources

In addition to assets, the Statement of Net Position also reports deferred outflows of resources. This separate financial statement element represents a consumption of net position that applies to a future period and so will not be recognized as an expense or expenditure until then. The District reports deferred outflows of resources for deferred charges on refunding of debt, for pension related items, and for OPEB related items. The deferred charge on refunding resulted from the difference between the carrying value of the refunded debt and its reacquisition price. The amount is deferred and amortized over the shorter of the life of the refunded or refunding debt.

In addition to liabilities, the Statement of Net Position reports a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of net position that applies to a future period and so will not be recognized as revenue until then. The District reports deferred inflows of resources for deferred charges on refunding of debt and pension related items.

The deferred amounts related to pension and OPEB relate to differences between expected and actual experience, changes of assumptions, and other pension and OPEB related changes.

Pensions

For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the California State Teachers’ Retirement System (CalSTRS) and the California Public Employees’ Retirement System (CalPERS) plan for schools (Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalSTRS and CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Member contributions are recognized in the period in which they are earned. Investments are reported at fair value. The net pension liability attributable to the governmental activities will be paid by the fund in which the employee worked.

Postemployment Benefits Other than Pensions (OPEB)

For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the CalSTRS Medicare Premium Payment (MPP) Program and additions to/deductions from the MPP’s fiduciary net position have been determined on the same basis as they are reported by the MPP. For this purpose, the MPP recognizes benefit payments when due and payable in accordance with the benefit terms. Investments are reported at fair value, except for money market investments and participating interest‐earning investment contracts that have a maturity at the time of purchase of one year or less, which are reported at cost. The total OPEB liability attributable to the governmental activities will be paid primarily by the fund in which the employee worked.

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Clovis Unified School District Notes to Financial Statements
June 30, 2021

Fund Balances ‐ Governmental Funds

As of June 30, 2021, fund balances of the governmental funds are classified as follows:

Nonspendable ‐ amounts that cannot be spent either because they are in nonspendable form or because they are legally or contractually required to be maintained intact.

Restricted ‐ amounts that can be spent only for specific purposes because of constitutional provisions or enabling legislation or because of constraints that are externally imposed by creditors, grantors, contributors, or the laws or regulations of other governments.

Committed ‐ amounts that can be used only for specific purposes determined by a formal action of the governing board. The governing board is the highest level of decision‐making authority for the District. Commitments may be established, modified, or rescinded only through resolutions or other action as approved by the governing board.

Assigned ‐ amounts that do not meet the criteria to be classified as restricted or committed but that are intended to be used for specific purposes. Under the District’s adopted policy, the assistant superintendent of business services or the associate superintendent of administrative services may assign amounts for specific purposes.

Unassigned ‐ all other spendable amounts.

Spending Order Policy

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. 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 governing board has provided otherwise in its commitment or assignment actions.

Minimum Fund Balance Policy

The governing board adopted a minimum fund balance policy for the General Fund in order to protect the district against revenue shortfalls or unpredicted on‐time expenditures. The policy requires a Reserve for Economic Uncertainties consisting of unassigned amounts equal to no less than ten percent of General Fund expenditures and other financing uses.

Net Position

Net position represents the difference between assets and deferred outflows of resources, and liabilities and deferred inflows of resources. Net position net of investment in capital assets consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowings used for the acquisition, construction, or improvement of those assets. Net position is reported as restricted when there are limitations imposed on their use either through the enabling legislation adopted by the District or through external

33

Clovis Unified School District Notes to Financial Statements
June 30, 2021

restrictions imposed by creditors, grantors, or laws or regulations of other governments. The District first applies restricted resources when an expense is incurred for purposes for which both restricted and unrestricted net position is available. The government‐wide financial statements report $193,182,612 of restricted net position.

Operating Revenues and Expenses

Operating revenues are those revenues that are generated directly from the primary activity of the proprietary funds. For the District, these revenues are premiums charged to the operating funds to support the health and welfare and workers’ compensation coverage. Operating expenses are necessary costs incurred to provide the services that are the primary activity of the fund. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

Interfund Activity

Exchange transactions between funds are reported as revenues in the seller funds and as expenditures/expenses in the purchaser funds. Flows of cash or goods from one fund to another without a requirement for repayment are reported as interfund transfers. Interfund transfers are reported as other financing sources/uses in governmental funds and after non‐operating revenues/expenses in proprietary funds. Repayments from funds responsible for particular expenditures/expenses to the funds that initially paid for them are not presented in the financial statements. Interfund transfers are eliminated in the governmental activities column of the Statement of Activities.

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 amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates.

Property Tax

Secured property taxes attach as an enforceable lien on property as of January 1. Taxes are payable in two installments on November 1 and February 1 and become delinquent on December 10 and April 10, respectively. Unsecured property taxes are payable in one installment on or before August 31. The County of Fresno bills and collects the taxes on behalf of the District. Local property tax revenues are recorded when received.

Change in Accounting Principles

Implementation of GASB Statement No. 84

As of July 1, 2020, the District adopted GASB Statement No. 84, Fiduciary Activities. The objective of this Statement is to improve the identification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported. The requirements of this Statement will enhance consistency and comparability by (1) establishing specific criteria for identifying activities that should be reported as fiduciary activities and (2) clarifying whether and how business‐type activities should report their fiduciary activities. Greater consistency and comparability enhance the value provided by the information reported in financial

34

Clovis Unified School District Notes to Financial Statements
June 30, 2021

statements for assessing government accountability and stewardship. The impact to the District resulted in a reclassification of the District’s student body activities from fiduciary to governmental. The effect of the implementation of this standard on beginning fund balance and net position is disclosed in Note 17.

New Accounting Pronouncements

In June 2017, the GASB issued Statement No. 87, Leases. The objective of this Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. This Statement increases the usefulness of governments’ financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right‐to‐use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments’ leasing activities.

The requirements of this Statement are effective for the reporting periods beginning after June 15, 2021. Early implementation is encouraged. The effects of this change on the District’s financial statements have not yet been determined.

Note 2 ‐	Deposits and Investments

Summary of Deposits and Investments

Deposits and investments as of June 30, 2021, are classified in the accompanying financial statements as follows:

Governmental funds Proprietary funds

Total deposits and investments

Deposits and investments as of June 30, 2021, consist of the following:

Cash awaiting deposit Cash on hand and in banks Cash with fiscal agent Cash in revolving Investments

Total deposits and investments

$ 392,533,424
	58,205,457 

$ 450,738,881

$      1,828,825 11,435,859 13,462,309 147,500
	423,864,388 

$ 450,738,881

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Clovis Unified School District Notes to Financial Statements
June 30, 2021

Policies and Practices

The District is authorized under California Government Code to make direct investments in local agency bonds, notes, or warrants within the State; U.S. Treasury instruments; registered State warrants or treasury notes; securities of the U.S. Government, or its agencies; bankers acceptances; commercial paper; certificates of deposit placed with commercial banks and/or savings and loan companies; repurchase or reverse repurchase agreements; medium term corporate notes; shares of beneficial interest issued by diversified management companies, certificates of participation, obligations with first priority security; and collateralized mortgage obligations.

Investment in County Treasury ‐ The District is considered to be an involuntary participant in an external investment pool as the District is required to deposit all receipts and collections of monies with their County Treasurer (Education Code Section 41001). The fair value of the District’s investment in the pool is reported in the accounting financial statements at amounts based upon the District’s pro‐rata share of the fair value provided by the County Treasurer for the entire portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by the County Treasurer, which is recorded on the amortized cost basis.

General Authorizations

Limitations as they relate to interest rate risk, credit risk, and concentration of credit risk are indicated in the schedules below:

Authorized Investment Type

Local Agency Bonds, Notes, Warrants Registered State Bonds, Notes, Warrants U.S. Treasury Obligations
U.S. Agency Securities Banker's Acceptance Commercial Paper
Negotiable Certificates of Deposit Repurchase Agreements
Reverse Repurchase Agreements Medium‐Term Corporate Notes Mutual Funds
Money Market Mutual Funds Mortgage Pass‐Through Securities County Pooled Investment Funds Local Agency Investment Fund (LAIF) Joint Powers Authority Pools

Maximum Remaining
	Maturity	

5 years 5 years 5 years 5 years 180 days 270 days 5 years 1 year 92 days 5 years N/A N/A
5 years N/A N/A N/A

Maximum Percentage
	of Portfolio	

None None None None 40% 25% 30% None
20% of base 30% 20% 20% 20% None None None

Maximum Investment
 in One Issuer 

None None None None 30% 10% None None None None 10% 10% None None None None

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Clovis Unified School District Notes to Financial Statements
June 30, 2021

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 has a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. The District manages its exposure to interest rate risk by investing in the County Pool which purchases a combination of shorter term and longer term investments and by timing cash flows from maturities so that 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. The District maintains an investment of $423,864,388 in the Fresno County Treasury Investment Pool that has an average weighted maturity of 791 days.

Credit Risk

Credit risk is the risk that an issuer of an investment will not fulfill its obligations to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The District’s investment with the Fresno County Treasury Investment Pool is currently not rated, nor is it required to be rated.

Custodial Credit Risk ‐ Deposits

This is the risk that in the event of a bank failure, the District’s deposits may not be returned to it. The District does not have a policy for custodial credit risk for deposits. However, the California Government Code requires that a financial institution secure deposits made by State or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110 percent of the total amount deposited by the public agency. California law also allows financial institutions to secure public deposits by pledging first trust deed mortgage notes having a value of 150 percent of the secured public deposits and letters of credit issued by the Federal Home Loan Bank of San Francisco having a value of
105 percent of the secured deposits. As of June 30, 2021, $27,589,616 of the District’s bank balance was exposed to custodial credit risk because it was uninsured and collateralized with securities held by the pledging financial institution’s trust department or agent, but not in the name of the District.

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Clovis Unified School District Notes to Financial Statements
June 30, 2021

Note 3 ‐	Receivables

Receivables at June 30, 2021, consisted of intergovernmental grants, entitlements, interest and other local sources. All receivables are considered collectible in full.

Non‐Major	Total	Internal	Total General	Governmental      Governmental            Service            Governmental
	Fund	 	Funds	 	Funds	 	Fund	 	Activities	

Federal Government Categorical aid
State Government
LCFF apportionment State Grants and
Entitlements Local sources

$ 13,320,779	$	553,332	$ 13,874,111	$	‐	$ 13,874,111

25,886,198	114,753	26,000,951	‐	26,000,951

22,095,064	1,192,596	23,287,660	‐	23,287,660
	4,831,633  	141,876  	4,973,509  	1,052,088  	6,025,597 

Total	$ 66,133,674	$	2,002,557	$ 68,136,231	$	1,052,088	$ 69,188,319

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Clovis Unified School District Notes to Financial Statements
June 30, 2021

Note 4 ‐	Capital Assets

Capital asset activity for the fiscal year ended June 30, 2021, was as follows:

Balance
	July 1, 2020	

Governmental Activities
Capital assets not being depreciated
Land	$ 102,491,793
Construction in progress	           48,534,722 

	Additions	

$	952,628
	15,092,723 

	Deductions	

$	‐
	(56,722,572) 

Balance
	June 30, 2021	

$	103,444,421
	6,904,873 

Total capital assets
not being depreciated

Capital assets being depreciated Land improvements Buildings and improvements Furniture and equipment

Total capital assets being depreciated

Total capital assets

Accumulated depreciation Land improvements
Buildings and improvements Furniture and equipment

Total accumulated depreciation

151,026,515

127,972,063 1,019,355,208 80,573,821

	1,227,901,092 

1,378,927,607

(87,655,855) (291,151,847) (43,477,314)

	(422,285,016)

16,045,351

2,065,103 53,704,841 3,339,462

	59,109,406 

75,154,757

(3,823,136) (22,616,309) (4,246,190)

	(30,685,635) 

(56,722,572)

‐ ‐
(38,612)

	(38,612) 

(56,761,184)

‐ ‐
25,956

	25,956 

110,349,294

130,037,166 1,073,060,049 83,874,671

	1,286,971,886 

1,397,321,180

(91,478,991) (313,768,156) (47,697,548)

	(452,944,695) 

Governmental activities
capital assets, net	$ 956,642,591	$	44,469,122	$ (56,735,228)	$	944,376,485

Depreciation expense was charged as a direct expense to governmental functions as follows:

Governmental Activities Instruction
School site administration All other pupil services Ancillary services Community services
All other administration Plant services

$ 18,793,136 2,057,685 3,046,430 3,015,401 726,145 1,414,148
	1,632,690 

Total depreciation expenses governmental activities	$ 30,685,635

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Clovis Unified School District Notes to Financial Statements
June 30, 2021

Note 5 ‐	Interfund Transactions

Interfund Receivables/Payables (Due To/Due From)

Interfund receivable and payable balances arise from interfund transactions and are recorded by all funds affected in the period in which transactions are executed. Interfund receivable and payable balances at June 30, 2021, between major and non‐major governmental funds, and internal service fund are as follows:

	Funds	

Major Governmental Funds General
Building
Non‐Major Governmental Funds Charter Schools
Adult Education Child Development Cafeteria
Capital Facilities County School Facilities
Special Reserve Fund for Capital Outlay Projects
Other Debt Service
Internal Service‐Self Insurance

Due from
	Other Funds 

$            99,999 116,295

863,196 94,342 ‐
‐ 316,867 ‐

269,904 ‐
	3,058,191 

Due to
	Other Funds 

$      3,872,111 357,972

‐ ‐
136,371 262,617 ‐ 106,735

‐ 82,988
	‐ 

Total	$	4,818,794	$	4,818,794

All balances resulted from the time lag between that date (1) interfund goods and services are provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system, and (3) payments between funds are made.

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Clovis Unified School District Notes to Financial Statements
June 30, 2021

Operating Transfers

Interfund transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them, (2) move receipts restricted to debt service from the funds collecting the receipts to the debt service fund as debt service payments become due, and (3) use unrestricted revenues collected in the General Fund to finance various programs accounted for in other funds in accordance with budgetary authorizations. Interfund transfers for the year ended June 30, 2021, consisted of the following:

The General Fund transferred to the Deferred Maintenance Non‐Major Governmental Fund for future repairs and maintenance projects.
The General Fund transferred to the Building Fund for the COPs debt service payment. The General Fund transferred to the Special Reserve Fund for Capital Outlay Projects
Non‐Major Governmental Fund the remaining revenue from fully matured bonds for future capital outlay projects.
The General Fund transferred to the Special Reserve Fund for Capital Outlay Projects to move bond refunding.
The General Fund transferred to the Adult Education Non‐Major Governmental Fund for the District's Adult Education contribution.
The Capital Facilities Non‐Major Governmental Fund transferred to the General Fund for the three percent administrative fee.
The County School Facilities Non‐Major Governmental Fund transferred to the
Special Reserve Fund for Capital Outlay Projects Non‐Major Governmental Fund to cover capital project costs.
The Child Development Non‐Major Governmental Fund transferred to the Special Reserve Fund for Capital Outlay Non‐Major Governmental Fund for portables at various sites.
The Building Fund transferred to the County School Facilities Non‐Major Governmental Fund for various capital expenditures.
The Bond Interest and Redemption Fund transferred to the General Fund the funds remaining from fully matured bond issuances to close out the related bond sub‐accounts.
The Debt Service Non‐Major Governmental Fund transferred to the Building Fund for cafeteria tables.

Total

$       2,700,000 854,013

89,746

8,762

424,000

336,000

106,735

804,679

716,599

89,776

	82,988 

 $	6,213,298 

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Clovis Unified School District Notes to Financial Statements
June 30, 2021

Note 6 ‐	Accounts Payable

Accounts payable at June 30, 2021, consisted of the following:

Non‐Major	Total	Internal	Total General	Building	Governmental Governmental          Service         Governmental
	Fund	 	Fund	 	Funds	 	Funds	 	Fund	 	Activities	

Vendor payables Deferred payroll

$ 6,485,664	$ 716,681	$ 2,584,383	$ 9,786,728	$ 3,257,833	13,044,561
	28,632,273  	‐  	‐  	28,632,273  	‐  	28,632,273 

Total	$35,440,873	$ 716,681	$ 2,584,383	$ 38,741,937	$ 3,257,833	$41,999,770

Note 7 ‐	Unearned Revenue

Unearned revenue at June 30, 2021, consists of the following:

General
	Fund	

Federal financial assistance State categorical aid

$	2,987,917
	2,977,004 

Total	$	5,964,921

Note 8 ‐	Note Participations

The District issued $34,260,000 of Fiscal Year 2020‐2021 Note Participations, Series E dated March 23, 2021, through the California Education Notes Program. The notes mature on December 30, 2021 with an interest rate of 0.25 percent. The notes were sold to provide operating cash for the District's working capital expenditures and the investment and reinvestment of funds for the District prior to the receipt of anticipated tax payments and other revenues for Fiscal Years 2020‐21 & 2021‐22. Each note is secured by a pledge of certain unrestricted revenues received by the District and each note shall constitute a first lien and charge thereon and shall be payable from the first moneys received by the District from pledged revenues. Each note shall be paid from any moneys lawfully available. Repayment terms stipulate that 100 percent of principal and interest are due on the account to a designated fiscal agent by the November 30, 2021 (50 percent of principal on September 30, 2021, 50 percent of principal on November 30, 2021, and 100 percent of the interest on November 30, 2021). As of June 30, 2021, the District had outstanding Note Participations in the amount of $34,260,000.

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Clovis Unified School District Notes to Financial Statements
June 30, 2021

Changes in the outstanding liabilities for the Note Participations are as follows:

Outstanding	Outstanding
	Issue Date	 	Rate	  Maturity Date   July 1, 2020  	Additions	 	Payments	  June 30, 2021 

3/23/2021	0.25%	12/30/2021	$	‐	$ 34,260,000	$	‐	$ 34,260,000

Note 9 ‐	Long‐Term Liabilities Other than OPEB and Pensions

Summary

The changes in the District’s long‐term liabilities other than OPEB and pensions during the year consisted of the following:

Balance
July 1, 2020	Additions

Balance Deductions	June 30, 2021

Due in One Year

Long‐Term Liabilities
General obligation bonds	$ 452,098,291 Certificates of participation               1,538,005 Unamortized debt premiums            8,885,474 Unamortized debt discounts               (523,187) Capital leases                                      13,867,888 Compensated absences                      3,473,663 Claims liability                                    28,750,028

$ 80,221,665 1,467,053 1,905,795
‐ ‐
712,250 72,375,891

$ (54,744,093) (585,058) (976,229)
29,332 (1,207,709)
‐ (72,989,684)

$ 477,575,863 2,420,000 9,815,040
(493,855) 12,660,179
4,185,913 28,136,235

$ 37,860,000 745,000
‐ ‐
569,179 ‐ ‐

Total	$ 508,090,162	$ 156,682,654	$(130,473,441)	$ 534,299,375	$ 39,174,179

The General Obligation Bonds are paid by the Bond Interest and Redemption Fund with local tax revenue. The Certificates of Participation are paid by the Building Fund and Other Debt Service Fund. The premiums and discounts will be amortized over the life of the related debt. Payments on the capital leases and child development portables are made from General Fund, Building Fund and Child Development Fund. Payments on compensated absences are made from the fund which the related employee worked.

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Clovis Unified School District Notes to Financial Statements
June 30, 2021

General Obligation Bonds

The outstanding general obligation bonded debt is as follows:

Fiscal Year	Bonds	Bonds
Fiscal Year	of Final	Interest	Original	Outstanding	Interest	Outstanding	Due in
	Issued         Series   Maturity  	Rate	 	Issue	      July 1, 2020      	Issued	        Accreted             Redeemed        June 30, 2021        One Year      

2003	01B	2028 Accreted interest on bonds
2005	04A	2030 Accreted interest on bonds
2006	04B	2031 Accreted interest on bonds
2012	12R	2022 2013	12A	2038 2014	12B	2039
Accreted interest on bonds 2015	12C	2040
Accreted interest on bonds 2016	12D	2041
Accreted interest on bonds 2017	16R	2022 2017	17R	2036
Accreted interest on bonds 2018	18R	2039 2020	19R	2038 2021	21R	2022 2021	20A	2046

3.6‐5.23%

3.8‐6.15%

4.0‐5.0%

2.0‐5.0% 1.0‐5.5% 2.0‐6.12%

3.19‐4.52%

3.37‐5.0%

2.0‐5.0% 3.18‐5.0%

2.694‐4.357% 1.786‐3.257% 0.200% 2.0‐4.0%

$ 29,000,256       $ 11,761,367       $                     ‐       $                     ‐       $ (1,393,426)     $ 10,367,941       $ 1,253,903 17,250,431                              ‐            1,356,162             (1,925,667)           16,680,926            1,921,097
119,998,286             48,945,837                              ‐                              ‐             (5,744,897)           43,200,940                              ‐ 62,960,899                              ‐            5,466,495             (6,685,103)           61,742,291                              ‐
48,001,060             13,847,060                              ‐                              ‐                                ‐             13,847,060                              ‐ 13,554,291                              ‐            1,370,434                                ‐             14,924,725                              ‐
17,935,000               4,555,000                              ‐                              ‐                                ‐               4,555,000            4,555,000 79,996,801             30,245,000                              ‐                              ‐           (18,430,000)           11,815,000            3,165,000 49,996,579               3,230,547                              ‐                              ‐             (1,242,015)              1,988,532                610,025 1,594,390                              ‐                175,731                 (612,985)              1,157,136                354,975
64,995,505             55,170,504                              ‐                              ‐                                ‐             55,170,504            1,125,000 3,029,260                              ‐                586,263                                ‐               3,615,523                              ‐
103,007,034             86,822,034                              ‐                              ‐             (1,575,000)           85,247,034            1,030,000 3,341,531                              ‐                769,736                                ‐               4,111,267                              ‐
30,510,000             12,605,000                              ‐                              ‐           (10,055,000)              2,550,000            2,550,000 43,121,677             39,711,677                              ‐                              ‐                 (640,000)           39,071,677                255,000 1,623,463                              ‐                621,844                                ‐               2,245,307                              ‐
20,710,000	18,220,000	‐	‐	(1,170,000)	17,050,000	1,000,000 23,630,000	23,630,000	‐	‐	(5,270,000)	18,360,000                165,000 19,875,000                                ‐          19,875,000	‐                                ‐	19,875,000          19,875,000
50,000,000     	‐        50,000,000  	‐  	‐  	50,000,000  	‐ 

Total	$ 452,098,291	$ 69,875,000       $ 10,346,665	$ (54,744,093)     $ 477,575,863       $ 37,860,000

Debt Service Requirements to Maturity

The capital appreciation bonds mature as follows:

Bonds Maturing Fiscal Year

Initial Bond Value

Accreted Interest

Accreted Obligation

Unaccreted Interest

Maturity Value

2022 2023 2024 2025 2026
2027‐2031 2032‐2036 2037

$       1,863,928 7,494,210 8,699,258 8,052,673 8,064,656 46,015,226 28,442,898 1,440,839

$       2,276,072 9,718,938 10,226,767 9,910,111 9,978,099 55,593,923 6,316,172 457,093

$       4,140,000 17,213,148 18,926,025 17,962,784 18,042,755 101,609,149 34,759,070 1,897,932

$                        ‐ 896,852 1,998,975 2,917,216 4,047,245 43,130,851 21,790,930 1,907,068

$       4,140,000 18,110,000 20,925,000 20,880,000 22,090,000 144,740,000 56,550,000 3,805,000

Total	$ 110,073,688	$ 104,477,175	$ 214,550,863	$ 76,689,137	$ 291,240,000

44

Clovis Unified School District Notes to Financial Statements
June 30, 2021

The current interest bonds mature as follows:

	Fiscal Year	

2022 2023 2024 2025 2026
2027‐2031 2032‐2036 2037‐2041 2042‐2046

Total

	Principal	

$ 33,720,000 17,120,000 1,760,000 1,450,000 1,585,000 20,735,000 38,020,000 129,930,000
	18,705,000 

$ 263,025,000

Interest to
	Maturity	

$      8,757,522 8,291,270 7,956,681 7,848,737 7,777,808 37,076,689 30,567,936 18,157,794
	1,100,362 

$ 127,534,799

	Total	

$ 42,477,522 25,411,270 9,716,681 9,298,737 9,362,808 57,811,689 68,587,936 148,087,794
	19,805,362 

$ 390,559,799

Certificates of Participation

2011 Certificates of Participation

In January 2011, the Central Valley Support Services JPA issued 2011 Certificates of Participation and entered into a lease agreement to fund the debt with the District in the amount of $4,450,000 with interest rates ranging from 2.00 to 4.50 percent. As of June 30, 2021, the principal balance outstanding was $952,947.

Debt Service Requirements to Maturity

Year Ending
June 30,	Principal	Interest	Total

2022	$	745,000 2023                                                                                                            330,000 2024                                                                                                            345,000 2025                                                                                                            500,000 2026                                                                                                            500,000

Total	$	2,420,000

$	111,888 86,775 69,056 45,000 15,000

$	327,719

$	 856,888 416,775 414,056 545,000 515,000

$	2,747,719

Compensated Absences

Compensated absences (unpaid employee vacation) for the District at June 30, 2021, amounted to $4,185,913.

Capital Leases

The District has entered into agreements to lease various facilities and equipment. Such agreements are, in substance, purchases (capital leases) and are reported as capital lease obligations. Two such on‐going leases are a computer refresh lease and a lease‐back agreement with the Central Valley Support Services JPA. The lease agreement was entered into with the JPA to provide funds for construction and modernization projects within the District and to provide the JPA with the source of funds to make the required debt service payments on the JPA’s $11,755,000 2020 Certificates of Participation issuance.

45

Clovis Unified School District Notes to Financial Statements
June 30, 2021

The District’s liability on lease agreements with options to purchase is summarized below:

Balance, July 1, 2020 Payments

$ 13,867,888
	(1,207,709) 

Balance, July 1, 2021	$ 12,660,179

The capital leases have minimum lease payments as follows:

Year Ending
	June 30,	

2022 2023 2024 2025 2026
2027‐2030

Total

Less amount representing interest

Lease
	Payment	

$      1,049,770 512,200 2,002,200 1,997,600 2,000,800
	8,003,000 

15,565,570

	(2,905,391) 

Present value of minimum lease payments	$ 12,660,179

Note 10 ‐ Net Other Postemployment Benefit (OPEB) Liability

For the fiscal year ended June 30, 2021, the District reported net OPEB liability, deferred outflows of resources, and OPEB expense for the following plans:

	OPEB Plan	

Retiree Health Plan
Medicare Premium Payment (MPP) Program

Net OPEB
	Liability	

$	492,437,990
	2,693,999 

Deferred Outflows
	of Resources	

$	106,221,771
	‐ 

OPEB
	Expense	

$ 40,891,278
	349,889 

Total	$	495,131,989	$	106,221,771	$ 41,241,167

46

Clovis Unified School District Notes to Financial Statements
June 30, 2021

The details of each plan are as follows:

District Plan

Plan Administration

The District’s governing board administers the Postemployment Benefits Plan (the Plan). The Plan is a single‐ employer defined benefit plan that is used to provide postemployment benefits other than pensions (OPEB) for eligible retirees and their spouses. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75.

Plan Membership

At July 1, 2020, the valuation date, the Plan membership consisted of the following:

Inactive employees or beneficiaries currently receiving benefits payments                                                         1,236 Active employees                                                                                                                                                              3,537

Total	4,773

Benefits Provided

The Plan provides lifetime postemployment benefits to eligible certificated and classified retirees and their spouses. To qualify, employees hired prior to August 31, 2007 (June 30, 2013 for CSEA members), must have
15 benefited service years with the District and attained the age of 55. Employees hired after September 1, 2007 (July 1, 2013 for CSEA members), must have 30 benefited service years with the District and attained the age of 55. Dental and vision benefits are provided for five years, but not beyond age 65. Benefits are payable for the lifetime of the retiree and spouse, with the District's plan becoming secondary to Medicare once one attains age 65. Survivor benefits are provided if a retiree pre‐deceases his/her spouse. However, retirees retired prior to March 1985 do not have their dependent or survivor coverage paid for by the District.

If an employee hired on or after September 1, 2007 (July 1, 2013 for CSEA members) has met the 30‐year service and enrollment requirements, but retires prior to age 62, the retiree may continue coverage at his or her expense until age 62, at which time the retiree will be eligible for lifetime District‐paid benefits. However, District‐paid dental and vision benefits terminate at time of retirement in this situation. An employee hired on or after September 1, 2007 (July 1, 2013 for CSEA members) may retire under the disability provisions of the program, in which case the age 62 requirement is waived, and benefits are provided as described above.

Board Members ‐ employees are subject to the same retirement eligibility as the Certificated and the Classifieds, with one exception: one may retire with District‐paid benefits, regardless of attained age, after completing 12 years of service with the District.

The District’s governing board has the authority to establish and amend the benefits terms as contained within the negotiated labor agreements.

47

Clovis Unified School District Notes to Financial Statements
June 30, 2021

Contributions

The benefit payment requirements of the Plan members and the District are established and may be amended by the District. The benefit payment is based on projected pay‐as‐you‐go financing requirements as determined annually through the agreements with the District. For measurement period of June 30, 2021, the District paid $9,836,098 in benefits.

Total OPEB Liability of the District

The District’s total OPEB liability of $492,437,990 was measured as of June 30, 2021, and was determined by applying updated procedures to the financial reporting actuarial valuation as of July 1, 2020.

Actuarial Assumptions

The following assumptions were applied to all periods included in the measurement as of June 30, 2021, unless otherwise specified:

Actuarial cost method Salary increases Inflation rate Discount rate
Healthcare cost trend rate

Entry age, level percent of pay 3.00 percent
2.75 percent 3.00 percent
5.00 percent for 2021‐2023; 4.00 percent for 2024‐2069; 4.00 percent for 2070 and later; Medicare ages 4.00 percent for all years

Pre‐retirement mortality rates for active employees are from CalSTRS Experience Analysis (2015‐2018) and from CalPERS Experience Study (1997‐2015), as appropriate, without projection. Post‐retirement mortality rates for retired members and beneficiaries are from CalSTRS Experience Analysis (2015‐2018) and for healthy recipients are from CalPERS Experience Study (1997‐2015), as appropriate, without projection.

Discount rate. GASB 75 requires a discount rate that reflects the following:

a)	The long‐term expected rate of return on OPEB plan investments – to the extent that the OPEB plan’s fiduciary net position (if any) is projected to be enough to make projected benefit payments and assets are expected to be invested using a strategy to achieve that return.
b)	A yield or index rate for 20‐year, tax‐exempt general obligation municipal bonds with an average rating of AA/Aa or higher – to the extent that the conditions in (a) are not met.

Actuarial assumptions used in the July 1, 2020 valuation were based on a review of plan experience during the period July 1, 2018 to June 30, 2020.

48

Clovis Unified School District Notes to Financial Statements
June 30, 2021

Changes in the Total OPEB Liability

Total OPEB Liability

Balance, June 30, 2020

Service cost Interest
Differences between expected and actual experience Changes of assumptions or other inputs
Benefit payments

Net change in total OPEB liability

Balance, June 30, 2021

$ 422,133,490

15,181,865 10,742,328 26,058,802 28,157,603
(9,836,098)

70,304,500

$ 492,437,990

Changes in Benefit Terms ‐ There were no changes in the benefit terms since the previous valuation.

Changes of Assumptions ‐ The inflation rate was changed from 3.00 percent to 2.75 percent since last study and the beginning health care cost trend rate changed from 5.40 percent to 5.00 percent.

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 one percent lower or higher than the current rate:

	Discount Rate	

1% decrease (0.92%)
Current discount rate (1.92%) 1% increase (2.92%)

Total OPEB
	Liability	

$ 604,474,070 492,437,990 406,804,013

Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend 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 healthcare cost trend rates that are one percent lower or higher than the current healthcare costs trend rate:

	Healthcare Cost Trend Rate	

1% decrease (4.00%)
Current healthcare cost trend rate (5.00%) 1% increase (6.00%)

Total OPEB
	Liability	

$ 393,617,645 492,437,990 627,616,147

49

Clovis Unified School District Notes to Financial Statements
June 30, 2021

OPEB Expense and Deferred Outflows of Resources related to OPEB

At June 30,2021, the District reported deferred outflows of resources totaling $106,221,771 for the differences between projected and changes in assumptions. The deferred outflows of resources related to differences between projected and actual experience and changes of assumptions will be amortized over the Expected Average Remaining Service Life (EARSL) of all members that are provided benefits (active, inactive, and retirees) as of the beginning of the measurement period and will be recognized in pension expense as follows:

Year Ended
	June 30,	

2022 2023 2024 2025 2026
Thereafter

Deferred Outflows
	of Resources	

$	 14,967,085 14,967,085 14,967,085 14,967,085 14,967,085
	31,386,346 

Total	$	106,221,771

Medicare Premium Payment (MPP) Program

Plan Description

The Medicare Premium Payment (MPP) Program is administered by the California State Teachers’ Retirement System (CalSTRS). The MPP Program is a cost‐sharing multiple‐employer other postemployment benefit plan (OPEB) established pursuant to Chapter 1032, Statutes 2000 (SB 1435). CalSTRS administers the MPP Program through the Teachers’ Health Benefits Fund (THBF).

A full description of the MPP Program regarding benefit provisions, assumptions (for funding, but not accounting purposes), and membership information is listed in the June 30, 2019 annual actuarial valuation report, Medicare Premium Payment Program Actuarial Valuation. This report and CalSTRS audited financial information are publicly available reports that can be found on the CalSTRS website under Publications at: http://www.calstrs.com/member‐publications.

Benefits Provided

The MPP Program pays Medicare Part A premiums and Medicare Parts A and B late enrollment surcharges for eligible members of the State Teachers Retirement Plan (STRP) Defined Benefit (DB)Program who were retired or began receiving a disability allowance prior to July 1, 2012 and were not eligible for premium free Medicare Part A. The payments are made directly to the Centers for Medicare and Medicaid Services (CMS) on a monthly basis.

The MPP Program is closed to new entrants as members who retire after July 1, 2012, are not eligible for coverage under the MPP Program.

50

Clovis Unified School District Notes to Financial Statements
June 30, 2021

The MPP Program is funded on a pay‐as‐you go basis from a portion of monthly District benefit payments. In accordance with California Education Code Section 25930, contributions that would otherwise be credited to the DB Program each month are instead credited to the MPP Program to fund monthly program and administrative costs. Total redirections to the MPP Program are monitored to ensure that total incurred costs do not exceed the amount initially identified as the cost of the program.

Net OPEB Liability and OPEB Expense

At June 30, 2021, the District reported a liability of $2,693,999 for its proportionate share of the net OPEB liability for the MPP Program. The net OPEB liability was measured as of June 30, 2020, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2019. The District’s proportion of the net OPEB liability was based on a projection of the District’s long‐term share of contributions to the OPEB Plan relative to the projected contributions of all participating school districts, actuarially determined. The District’s proportionate share for the measurement period June 30, 2020 and
June 30, 2019, respectively, was 0.6357 percent and 0.6295 percent, resulting in a net increase in the proportionate share of 0.0062 percent.

For the year ended June 30, 2021, the District recognized OPEB expense of $349,889.

Actuarial Methods and Assumptions

The June 30, 2020 total OPEB liability was determined by applying update procedures to the financial reporting actuarial valuation as of June 30, 2019, and rolling forward the total OPEB liability to June 30, 2020, using the assumptions listed in the following table:

Measurement Date Valuation Date Experience Study

Actuarial Cost Method Investment Rate of Return
Medicare Part A Premium Cost Trend Rate Medicare Part B Premium Cost Trend Rate

June 30, 2020 June 30, 2019
July 1, 2014 through June 30, 2018
Entry age normal 2.21%
4.50% 5.40%

June 30, 2019 June 30, 2018
July 1, 2010 through June 30, 2015
Entry age normal 3.50%
3.70% 4.10%

For the valuation as of June 30, 2019, CalSTRS uses a generational mortality assumption, which involves the use of a base mortality table and projection scales to reflect expected annual reductions in mortality rates at each age, resulting in increases in life expectancies each year into the future. The base mortality tables are CalSTRS custom tables derived to best fit the patterns of mortality among our members. The projection scale was set equal to 110 percent of the ultimate improvement factor from the Mortality Improvement Scale (MP‐2019) table, issued by the Society of Actuaries.

Assumptions were made about future participation (enrollment) into the MPP Program because CalSTRS is unable to determine which members not currently participating meet all eligibility criteria for enrollment in the future. Assumed enrollment rates were derived based on past experience and are stratified by age with the probability of enrollment diminishing as the members’ age increases. This estimated enrollment rate was then

51

Clovis Unified School District Notes to Financial Statements
June 30, 2021

applied to the population of members who may meet criteria necessary for eligibility and are not currently enrolled in the MPP Program. Based on this, the estimated number of future enrollments used in the financial reporting valuation was 294 or an average of 0.18 percent of the potentially eligible population (159,339).

The MPP Program is funded on a pay‐as‐you‐go basis with contributions generally being made at the same time and in the same amount as benefit payments and expenses coming due. Any funds within the MPP Program as of June 30, 2020, were to manage differences between estimated and actual amounts to be paid and were invested in the Surplus Money Investment Fund, which is a pooled investment program administered by the State Treasurer.

Discount Rate

The discount rate used to measure the total OPEB liability as of June 30, 2020, is 2.21 percent. As the MPP Program is funded on a pay‐as‐you‐go basis as previously noted, the OPEB Plan’s fiduciary net position was not projected to be sufficient to make projected future benefit payments. Therefore, a discount rate of
2.21 percent, which is the Bond Buyer 20‐Bond GO Index from Bondbuyer.com as of June 30, 2020, was applied to all periods of projected benefit payments to measure the total OPEB liability. The discount rate decreased 1.29 percent from 3.50 percent as of June 30, 2019.

Sensitivity of the District’s Proportionate Share of the Net OPEB Liability to Changes in the Discount Rate

The following presents the District’s proportionate share of the net OPEB liability calculated using the current discount rate, as well as what the net OPEB liability would be if it were calculated using a discount rate that is one percent lower or higher than the current rate:

Net OPEB
	Discount Rate	                                            	Liability	

1% decrease (1.21%)
Current discount rate (2.21%) 1% increase (3.21%)

$	 2,978,966 2,693,999 2,451,513

Sensitivity of the District’s Proportionate Share of the Net OPEB Liability to Changes in the Medicare Costs Trend Rates

The following presents the District’s proportionate share of the net OPEB liability calculated using the current Medicare costs trend rates, as well as what the net OPEB liability would be if it were calculated using Medicare costs trend rates that are one percent lower or higher than the current rates:

Net OPEB
Medicare Costs Trend Rates	         Liability	

1% decrease (3.50% Part A and 4.40% Part B)
Current Medicare costs trend rates (4.50% Part A and 5.40% Part B) 1% increase (5.50% Part A and 6.40% Part B)

$	 2,442,740 2,693,999 2,983,244

52

Clovis Unified School District Notes to Financial Statements
June 30, 2021

Note 11 ‐ Fund Balances, Governmental Funds

Fund balances for Governmental Funds are composed of the following elements:

Nonspendable Revolving cash Stores inventories

Total nonspendable

Restricted
Legally restricted programs Student activities
Food service Childcare programs Capital projects Debt services

Total restricted

Committed
Adult education program Deferred maintenance
program

Total committed

General Fund

$	144,000
	2,383,166 

	2,527,166 

23,261,525 ‐ ‐ ‐ ‐
	‐ 

23,261,525

‐

‐

	‐ 

Building Fund

$	‐
	‐ 

	‐ 

‐ ‐ ‐ ‐
51,148,952
	‐ 

51,148,952

‐

‐

	‐ 

Bond Interest and Redemption Fund

$	‐
	‐ 

	‐ 

‐ ‐ ‐ ‐ ‐
	50,597,729 

50,597,729

‐

‐

	‐ 

Non‐Major Governmental Funds

$	3,500
	978,742 

	982,242 

185,205 2,256,869 5,009,223 451,593 95,878,823
	1,185 

103,782,898

3,559,697

658,641

	4,218,338 

Total

$	147,500
	3,361,908 

	3,509,408 

23,446,730 2,256,869 5,009,223 451,593 147,027,775
	50,598,914 

228,791,104

3,559,697

658,641

	4,218,338 

Assigned
Textbook carryover Site carryovers Depatement/program
carryovers
Student computer refresh Fair market value adjustment LCAP supplemental
LCAP carryover
Childcare programs future growth
Charter school future program growth
Capital projects/maintenance

Total assigned

Unassigned
Remaining unassigned

Total unassigned

361,474                                  ‐ 2,863,411                                  ‐

5,164,926                                  ‐ 3,105,579                                  ‐ 2,413,996                                  ‐ ‐                                  ‐ 6,791,147                                  ‐

‐	‐

‐                                  ‐ ‐                                  ‐

20,700,533	‐

116,853,507	‐

116,853,507	‐

‐                                  ‐ ‐                                  ‐

‐	‐ ‐	‐ ‐                       94,301 ‐                       39,239 ‐	‐

‐	810,369

‐                     515,506 ‐                 6,368,189

‐	7,827,604

‐	‐

‐	‐

361,474 2,863,411

5,164,926 3,105,579 2,508,297 39,239 6,791,147

810,369

515,506 6,368,189

28,528,137

116,853,507

116,853,507

Total	$ 163,342,731	$ 51,148,952	$ 50,597,729	$ 116,811,082	$ 381,900,494

53

Clovis Unified School District Notes to Financial Statements
June 30, 2021

Note 12 ‐ Risk Management

Workers’ Compensation, Short‐Term Disability, and Employee Medical Benefits

The District is self‐insured for workers’ compensation, short‐term disability, health, vision and dental programs. The District accounts for and finances its uninsured risks of loss in the Self Insurance Fund. The District provides coverage for up to a maximum of $350,000 for each workers’ compensation claim and up to $700,000 for each health insurance claim. The District purchases commercial insurance for claims in excess of coverage provided by the General Fund and Self Insurance Fund and for all other risks of loss.

All funds of the District, which reflect salary costs, participate in the program and make payments to the Self Insurance Fund based on actuarial estimates of the amounts needed to pay prior and current year claims. The claims liability of $35,641,237 reported in the Self Insurance Fund at June 30, 2021, is based on the requirements of GASB Statement No. 10, which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. This amount also consists of a reserved for health and welfare claims based on an actuary study of estimated losses.

Property and Liability

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. During fiscal year ending June 30, 2021, the District contracted with the Schools Excess Liability Fund (SELF) and the Alliance of Schools for Cooperative Insurance Programs (ASCIP) for property and liability insurance coverage. Settled claims have not exceeded this commercial coverage in any of the past three years. There has not been a significant reduction in coverage from the prior year.

Claims Liabilities

The District records an estimated liability for indemnity torts and other claims against the District. Claims liabilities are based on estimates of the ultimate cost of reported claims (including future claim adjustment expenses) and an estimate for claims incurred, but not reported based on historical experience.

54

Clovis Unified School District Notes to Financial Statements
June 30, 2021

Unpaid Claims Liabilities

The District establishes a liability for both reported and unreported events, which includes estimates of both future payments of losses and related claim adjustment expenses. The following represent the changes in approximate aggregate liabilities for the District from July 1, 2019 to June 30, 2021:

Workers’
	Health Care	      Compensation 

Stop‐Loss, Disability and
	Property	     	Total	

Liability Balance, July 1, 2019 Claims and changes in estimates Claims payments

$ 11,576,331 73,980,064
(73,387,067)

$ 15,976,487	$ 1,788,387
(1,788,387)

215,665 817,403 (428,855)

$ 27,768,483 76,585,854
(75,604,309)

Liability Balance, June 30, 2020 Claims and changes in estimates Claims payments

12,169,328 70,129,864
	(69,889,730)

15,976,487 1,742,483
	(2,699,059)

604,213 503,544
	(400,895) 

28,750,028 72,375,891
	(72,989,684) 

Liability Balance, June 30, 2021	$ 12,409,462	$ 15,019,911	$	706,862	$ 28,136,235

Note 13 ‐ Employee Retirement Systems

Qualified employees are covered under multiple‐employer defined benefit pension plans maintained by agencies of the State of California. Academic employees are members of the California State Teachers’ Retirement System (CalSTRS) and classified employees are members of the California Public Employees’ Retirement System (CalPERS).

For the fiscal year ended June 30, 2021, the District reported its proportionate share of net pension liabilities, deferred outflows of resources, deferred inflows of resources, and pension expense for each of the above plans as follows:

	Pension Plan	

CalSTRS CalPERS

Net
	Pension Liability 

$	353,552,614
	178,895,219 

Deferred Outflows
	of Resources	

$	93,333,961
	32,503,352 

Deferred Inflows
	of Resources	

$	13,012,464
	2,786,266 

 Pension Expense 

$	50,870,275
	37,454,393 

Total	$	532,447,833	$	125,837,313	$	15,798,730	$	88,324,668

55

Clovis Unified School District Notes to Financial Statements
June 30, 2021

The details of each plan are as follows:

California State Teachers’ Retirement System (CalSTRS)

Plan Description

The District contributes to the State Teachers Retirement Plan (STRP) administered by the California State Teachers’ Retirement System (CalSTRS). STRP is a cost‐sharing multiple‐employer public employee retirement system defined benefit pension plan. Benefit provisions are established by State statutes, as legislatively amended, within the State Teachers’ Retirement Law.

A full description of the pension plan regarding benefit provisions, assumptions (for funding, but not accounting purposes), and membership information is listed in the June 30, 2019, annual actuarial valuation report, Defined Benefit Program Actuarial Valuation. This report and CalSTRS audited financial information are publicly available reports that can be found on the CalSTRS website under Publications at: http://www.calstrs.com/member‐ publications.

Benefits Provided

The STRP provides retirement, disability and survivor benefits to beneficiaries. Benefits are based on members’ final compensation, age, and years of service credit. Members hired on or before December 31, 2012, with five years of credited service are eligible for the normal retirement benefit at age 60. Members hired on or after January 1, 2013, with five years of credited service are eligible for the normal retirement benefit at age 62. The normal retirement benefit is equal to 2.0 percent of final compensation for each year of credited service.

The STRP is comprised of four programs: Defined Benefit Program, Defined Benefit Supplement Program, Cash Balance Benefit Program, and Replacement Benefits Program. The STRP holds assets for the exclusive purpose of providing benefits to members and beneficiaries of these programs. CalSTRS also uses plan assets to defray reasonable expenses of administering the STRP. Although CalSTRS is the administrator of the STRP, the state is the sponsor of the STRP and obligor of the trust. In addition, the state is both an employer and nonemployer contributing entity to the STRP.

The District contributes exclusively to the STRP Defined Benefit Program, thus disclosures are not included for the other plans.

56

Clovis Unified School District Notes to Financial Statements
June 30, 2021

The STRP provisions and benefits in effect at June 30, 2021, are summarized as follows:

STRP Defined Benefit Program

Hire date Benefit formula
Benefit vesting schedule Benefit payments Retirement age
Monthly benefits as a percentage of eligible compensation Required employee contribution rate
Required employer contribution rate Required state contribution rate

On or before December 31, 2012 2% at 60
5 years of service Monthly for life 60
2.0% ‐ 2.4% 10.25% 16.15% 10.328%

On or after January 1, 2013 2% at 62
5 years of service Monthly for life 62
2.0% ‐ 2.4% 10.205% 16.15% 10.328%

Contributions

Required member, District and State of California contributions rates are set by the California Legislature and Governor and detailed in Teachers’ Retirement Law. The contributions rates are expressed as a level percentage of payroll using the entry age normal actuarial method. In accordance with AB 1469, employer contributions into the CalSTRS will be increasing to a total of 19.1 percent of applicable member earnings phased over a seven‐year period. The contribution rates for each plan for the year ended June 30, 2021, are presented above and the District’s total contributions were $32,293,427.

Pension Liabilities, Pension Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources Related to Pensions

At June 30, 2021, the District reported a liability for its proportionate share of the net pension liability that reflected a reduction for State pension support provided to the District. The amount recognized by the District as its proportionate share of the net pension liability, the related state support and the total portion of the net pension liability that was associated with the District were as follows:

Total net pension liability, including State share

Proportionate share of net pension liability
State’s proportionate share of the net pension liability

Total

$ 353,552,614
	182,256,414 

$ 535,809,028

The net pension liability was measured as of June 30, 2020. The District’s proportion of the net pension liability was based on a projection of the District’s long‐term share of contributions to the pension plan relative to the projected contributions of all participating school districts and the State, actuarially determined. The District’s proportionate share for the measurement period June 30, 2020 and June 30, 2019, respectively, was
0.3648 percent and 0.3558 percent, resulting in a net increase in the proportionate share of 0.0090 percent.

57

Clovis Unified School District Notes to Financial Statements
June 30, 2021

For the year ended June 30, 2021, the District recognized pension expense of $50,870,275. In addition, the District recognized pension expense and revenue of $25,532,335 for support provided by the State. At
June 30, 2021, the District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Outflows
	of Resources	

Deferred Inflows
	of Resources	

Pension contributions subsequent to measurement date Change in proportion and differences between contributions
made and District's proportionate share of contributions Diﬀerences between projected and actual earnings
on pension plan investments
Differences between expected and actual experience in the measurement of the total pension liability
Changes of assumptions

$	32,293,427

17,541,915

8,398,374

623,858
	34,476,387 

$	‐

3,041,675

‐

9,970,789
	‐ 

Total	$	93,333,961	$	13,012,464

The deferred outflows of resources related to pensions resulting from District contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the subsequent fiscal year.

The deferred outflows of resources related to the difference between projected and actual earnings on pension plan investments will be amortized over a closed five‐year period and will be recognized in pension expense as follows:

Year Ended
	June 30,	

2022 2023 2024 2025

Deferred Outflows
	of Resources	

$	(5,124,639) 2,861,479 5,708,973
	4,952,561 

Total	$	8,398,374

58

Clovis Unified School District Notes to Financial Statements
June 30, 2021

The deferred outflows/(inflows) of resources related to the change in proportion and differences between contributions made and District’s proportionate share of contributions, differences between expected and actual experience in the measurement of the total pension liability, and changes of assumptions will be amortized over the Expected Average Remaining Service Life (EARSL) of all members that are provided benefits (active, inactive, and retirees) as of the beginning of the measurement period. The EARSL for the measurement period is seven years and will be recognized in pension expense as follows:

Year Ended
	June 30,	

2022 2023 2024 2025 2026
Thereafter

Deferred Outflows/(Inflows)
	of Resources	

$           12,430,695 10,597,137 12,745,480 1,996,356 1,007,057
	852,971 

Total	$	39,629,696

Actuarial Methods and Assumptions

Total pension liability for STRP was determined by applying update procedures to the financial reporting actuarial valuation as of June 30, 2019, and rolling forward the total pension liability to June 30, 2020. The financial reporting actuarial valuation as of June 30, 2019, used the following methods and assumptions, applied to all prior periods included in the measurement:

Valuation date Measurement date Experience study Actuarial cost method Discount rate
Investment rate of return Consumer price inflation Wage growth

June 30, 2019 June 30, 2020
July 1, 2015 through June 30, 2018 Entry age normal
7.10% 7.10% 2.75% 3.50%

CalSTRS uses a generational mortality assumption, which involves the use of a base mortality table and projection scales to reflect expected annual reductions in mortality rates at each age, resulting in increases in life expectancies each year into the future. The base mortality tables are CalSTRS custom tables derived to best fit the patterns of mortality among its members. The projection scale was set equal to 110 percent of the ultimate improvement factor from the Mortality Improvement Scale (MP‐2019) table, issued by the Society of Actuaries.

59

Clovis Unified School District Notes to Financial Statements
June 30, 2021

The long‐term expected rate of return on pension plan investments was determined using a building‐block method in which best estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. The best estimate ranges were developed using capital market assumptions from CalSTRS general investment consultant (Pension Consulting Alliance‐PCA) as an input to the process. The actuarial investment rate of return assumption was adopted by the board in January 2020 in conjunction with the most recent experience study. For each future valuation, CalSTRS consulting actuary (Milliman) reviews the return assumption for reasonableness based on the most current capital market assumptions. Best estimates of 20‐year geometrically‐linked real rates of return and the assumed asset allocation for each major asset class for the year ended June 30, 2020, are summarized in the following table:

Asset Class

Public equity Real estate Private equity Fixed income
Risk mitigating strategies Inflation sensitive Cash/liquidity

Assumed Asset
	Allocation	

42% 15% 13% 12% 10% 6% 2%

Long‐Term Expected Real
 Rate of Return 

4.8% 3.6% 6.3% 1.3% 1.8% 3.3% (0.4%)

Discount Rate

The discount rate used to measure the total pension liability was 7.10 percent. The projection of cash flows used to determine the discount rate assumed the contributions from plan members and employers will be made at statutory contribution rates. Projected inflows from investment earnings were calculated using the long‐term assumed investment rate of return (7.10 percent) and assuming that contributions, benefit payments and administrative expense occurred midyear. Based on these assumptions, the STRP’s fiduciary net position was projected to be available to make all projected future benefit payments to current plan members. Therefore, the long‐term assumed investment rate of return was applied to all periods of projected benefit payments to determine total pension liability.

The following presents the District’s proportionate share of the net pension liability calculated using the current discount rate as well as what the net pension liability would be if it were calculated using a discount rate that is one percent lower or higher than the current rate:

	Discount Rate	

1% decrease (6.10%)
Current discount rate (7.10%) 1% increase (8.10%)

Net Pension
	Liability	

$ 534,168,751 353,552,614 204,428,558

60

Clovis Unified School District Notes to Financial Statements
June 30, 2021

California Public Employees Retirement System (CalPERS)

Plan Description

Qualified employees are eligible to participate in the School Employer Pool (SEP) under the California Public Employees’ Retirement System (CalPERS), a cost‐sharing multiple‐employer public employee retirement system defined benefit pension plan administered by CalPERS. Benefit provisions are established by State statutes, as legislatively amended, within the Public Employees’ Retirement Law.

A full description of the pension plan regarding benefit provisions, assumptions (for funding, but not accounting purposes), and membership information is listed in the June 30, 2019, annual actuarial valuation report, Schools Pool Actuarial Valuation. This report and CalPERS audited financial information are publicly available reports that can be found on the CalPERS website under Forms and Publications at: https://www.calpers.ca.gov/page/forms‐publications.

Benefits Provided

CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of service credit, a benefit factor and the member’s final compensation. Members hired on or before December 31, 2012, with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. Members hired on or after January 1, 2013, with five years of total service are eligible to retire at age 52 with statutorily reduced benefits. All members are eligible for non‐duty disability benefits after five years of service. The Basic Death Benefit is paid to any member’s beneficiary if the member dies while actively employed. An employee’s eligible survivor may receive the 1957 Survivor Benefit if the member dies while actively employed, is at least age 50
(or 52 for members hired on or after January 1, 2013), and has at least five years of credited service. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

The CalPERS provisions and benefits in effect at June 30, 2021, are summarized as follows:

School Employer Pool (CalPERS)

Hire date Benefit formula
Benefit vesting schedule Benefit payments Retirement age
Monthly benefits as a percentage of eligible compensation Required employee contribution rate
Required employer contribution rate

On or before December 31, 2012 2% at 55
5 years of service Monthly for life 55
1.1% ‐ 2.5% 7.00% 20.70%

On or after January 1, 2013 2% at 62
5 years of service Monthly for life 62
1.0% ‐ 2.5% 7.00% 20.70%

61

Clovis Unified School District Notes to Financial Statements
June 30, 2021

Contributions

Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Total plan contributions are calculated through the CalPERS annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The District is required to contribute the difference between the actuarially
determined rate and the contribution rate of employees. The contributions rates are expressed as percentage of annual payroll. The contribution rates for each plan for the year ended June 30, 2021, are presented above and the total District contributions were $16,845,513.

Pension Liabilities, Pension Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources Related to Pensions

As of June 30, 2021, the District reported net pension liabilities for its proportionate share of the CalPERS net pension liability totaling $178,895,219. The net pension liability was measured as of June 30, 2020. The District’s proportion of the net pension liability was based on a projection of the District’s long‐term share of contributions to the pension plan relative to the projected contributions of all participating school districts, actuarially determined. The District’s proportionate share for the measurement period June 30, 2020 and
June 30, 2019, respectively, was 0.5830 percent and 0.5770 percent, resulting in a net increase in the proportionate share of 0.0060 percent.

For the year ended June 30, 2021, the District recognized pension expense of $37,454,393. At June 30, 2021, the District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Outflows
	of Resources	

Deferred Inflows
	of Resources	

Pension contributions subsequent to measurement date Change in proportion and differences between contributions
made and District’s proportionate share of contributions Differences between projected and actual earnings on
pension plan investments
Differences between expected and actual experience in the measurement of the total pension liability
Changes of assumptions

$	16,845,513

2,405,140

3,724,029

8,872,654
	656,016 

$	‐

2,786,266

‐

‐
	‐ 

Total	$	32,503,352	$	2,786,266

The deferred outflows of resources related to pensions resulting from District contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the subsequent fiscal year.

62

Clovis Unified School District Notes to Financial Statements
June 30, 2021

The deferred outflows of resources related to the difference between projected and actual earnings on pension plan investments will be amortized over a closed five‐year period and will be recognized in pension expense as follows:

Year Ended
	June 30,	

2022 2023 2024 2025

Deferred Outflows
	of Resources	

$	(1,393,608) 1,243,050 2,160,625
	1,713,962 

Total	$	3,724,029

The deferred outflows/(inflows) of resources related to the change in proportion and differences between contributions made and District’s proportionate share of contributions, differences between expected and actual experience in the measurement of the total pension liability, and changes of assumptions will be amortized over the Expected Average Remaining Service Life (EARSL) of all members that are provided benefits (active, inactive, and retirees) as of the beginning of the measurement period. The EARSL for the measurement period is 4.1 years and will be recognized in pension expense as follows:

Year Ended
	June 30,	

2022 2023 2024 2025

Deferred Outflows/(Inflows)
	of Resources	

$             6,541,265 2,601,501
30,316
	(25,538) 

Total	$	9,147,544

Actuarial Methods and Assumptions

Total pension liability for the SEP was determined by applying update procedures to the financial reporting actuarial valuation as of June 30, 2019, and rolling forward the total pension liability to June 30, 2020. The financial reporting actuarial valuation as of June 30, 2019, used the following methods and assumptions, applied to all prior periods included in the measurement:

Valuation date Measurement date Experience study Actuarial cost method Discount rate
Investment rate of return Consumer price inflation Wage growth

June 30, 2019 June 30, 2020
July 1, 1997 through June 30, 2015 Entry age normal
7.15% 7.15% 2.50%
Varies by entry age and service

63

Clovis Unified School District Notes to Financial Statements
June 30, 2021

The mortality table used was developed based on CalPERS‐specific data. The table includes 15 years of mortality improvements using Society of Actuaries 90 percent of scale MP‐2016.

In determining the long‐term expected rate of return, CalPERS took into account both short‐term and long‐term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound returns were calculated over the short‐term (first ten years) and the long‐term (11+ years) using a building‐block approach. Using the expected nominal returns for both short‐term and long‐term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short‐term and long‐term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

	Asset Class	

Global equity Fixed income Inflation assets Private equity
Real assets Liquidity

Assumed Asset
	Allocation	

50% 28% 0% 8%
13% 1%

Long‐Term Expected Real
 Rate of Return 

5.98% 2.62% 1.81% 7.23%
4.93% (0.92%)

Discount Rate

The discount rate used to measure the total pension liability was 7.15 percent. The projection of cash flows used to determine the discount rate assumed the contributions from plan members and employers will be made at statutory contribution rates. Based on these assumptions, the School Employer Pool fiduciary net position was projected to be available to make all projected future benefit payments to current plan members. Therefore, the long‐term assumed investment rate of return was applied to all periods of projected benefit payments to determine total pension liability.

The following presents the District’s proportionate share of the net pension liability calculated using the current discount rate as well as what the net pension liability would be if it were calculated using a discount rate that is one percent lower or higher than the current rate:

	Discount Rate	

1% decrease (6.15%)
Current discount rate (7.15%) 1% increase (8.15%)

Net Pension
	Liability	

$ 257,194,500 178,895,219 113,910,746

64

Clovis Unified School District Notes to Financial Statements
June 30, 2021

Accumulation Program for Part‐Time and Limited‐Service Employees Plan (APPLE)

Plan Description

As established by Federal law, all public sector employees who are not members of their employer’s existing retirement system (CalSTRS or CalPERS) must be covered by social security or an alternative plan. The District has elected to use the Accumulation Program for Part‐time and Limited‐service Employees (APPLE) Plan as its alternative plan.

The APPLE program applies to all part‐time employees working less than 20 hours per week and are not eligible for CalPERS or CalSTRS retirement programs. This includes all part‐time classified and certificated employees working less than 20 hours, as well as substitute employees.

Employees are eligible for plan benefits upon termination with the District and have the option of rolling over their benefit into an individual retirement account or receiving a direct payment. Those with account balances of less than $3,500 and who do not indicate which alternative they choose will receive a direct distribution from the plan.

Funding Policy

Participants in APPLE are required to contribute 3.75 percent of gross salary to APPLE. The District is required to contribute 3.75 percent of gross salary expenditures to APPLE. The District’s contributions to APPLE for the fiscal year ending June 30, 2021, 2020, 2019 were $617,251, $701,197, and $749,547, respectively.

On Behalf Payments

The State of California makes contributions to CalSTRS on behalf of the District. These payments consist of State General Fund contributions to CalSTRS in the amount of $20,626,013 (10.328 percent of annual payroll). Contributions are no longer appropriated in the annual Budget Act for the legislatively mandated benefits to CalPERS. Therefore, there is no on behalf contribution rate for CalPERS. Under accounting principles generally accepted in the United States of America, these amounts are to be reported as revenues and expenditures. Accordingly, these amounts have been recorded in these financial statements.

65

Clovis Unified School District Notes to Financial Statements
June 30, 2021

Note 14 ‐ Commitments and Contingencies

Grants

The District received financial assistance from Federal and State agencies in the form of grants. The disbursement of funds received under these programs generally requires compliance with terms and conditions specified in the grant agreements and are subject to audit by the grantor agencies. Any disallowed claims resulting from such audits could become a liability of the General Fund or other applicable funds. However, in the opinion of management, any such disallowed claims will not have a material adverse effect on the overall financial position of the District at June 30, 2021.

Litigation

The District is involved in various litigation arising from the normal course of business. In the opinion of management and legal counsel, the disposition of all litigation pending is not expected to have a material adverse effect on the overall financial position of the District at June 30, 2021.

Operating Leases

The District has entered into various operating leases for equipment and facilities use with lease terms in excess of one year. All of these agreements contain purchase options. All agreements contain a termination clause providing for cancellation after a specified number of days written notice to lessors, but it is unlikely that the District will cancel any of the agreements prior to the expiration date.

The District currently has a rental agreement with the Central Valley Support Services JPA to fund the JPA’s repayment of their Certificates of Participation issuance. The funded project was for the District’s Campus Catering facility. The required rental payments are as follows:

Year Ending June 30,

Lease Payment

2022 2023 2024 2025 2026
2027‐2031 2032‐2036

Total

$          395,600 397,200 393,400 399,400 414,800 2,101,200 2,203,600

$	6,305,200

66

Clovis Unified School District Notes to Financial Statements
June 30, 2021

Construction Commitments

As of June 30, 2021, the District had the following commitments with respect to the unfinished capital projects:

Location

Dry Creek Elementary School Clovis East High School Buchanan High School District‐wide
District‐wide

Description

Modernization CTE construction CTE construction School site paving
School site painting

Remaining Construction Commitment

$       2,760,606 1,799,406 2,435,171 394,289
	223,837 

Expected Date of Completion

March 2022 December 2021 December 2021 August 2021 August 2021

Total	$	7,613,309

Note 15 ‐ Participation in Joint Powers Authorities

The District is a member of the Schools Excess Liability Fund (SELF), Alliance of Schools for Cooperative Insurance Programs (ASCIP), Central Valley Support Services (CVSS), Education Technology, and the Center for Advanced Research & Technology (CART) joint powers authorities (JPAs). The District pays an annual premium to ASCIP for its property liability coverage. Payments for services received from JPAs are paid to CVSS and CART. The relationships between the District and the JPAs are such that they are not component units of the District for financial reporting purposes.

These entities have budgeting and financial reporting requirements independent of member units and their financial statements are not presented in these financial statements; however, fund transactions between the entities and the District are included in these statements. Audited financial statements are generally available from the respective entities.

One designee for each district votes for a 16‐member Board of Directors for SELF.

During the year ended June 30, 2021, the District made a payment of $469,381 to SELF for liability insurance coverage.

Eleven voting members of the ASCIP Executive Committee appointed by the member districts.

During the year ended June 30, 2021, the District made payments of $3,646,885 to ASCIP for property and liability insurance coverage and $984,896 for workers’ compensation insurance coverage.

67

Clovis Unified School District Notes to Financial Statements
June 30, 2021

One designee and one alternate from each founding member district votes for a five‐member Board of Directors for the Education Technology JPA.

During the year ended June 30, 2021, the District made no payments to the Education Technology JPA.

The Governing Board of CVSS shall consist of a District representative appointed by the Superintendent and a member of the operations staff of each educational agency holding membership in CVSS selected by that agency, and the Treasurer of CVSS.

The Governing Board of CART is comprised of representatives from the member public educational agencies and related associations.

During the year ended June 30, 2021, the District made payments of $1,113,798 to CART for the financing and operation of a joint technical center for high school age students.

Note 16 ‐ Subsequent Events

2021 and 2022 Refunding General Obligation Bond Issuances

On October 21, 2021, the District issued $125,145,000 2021 Series B and $4,190,000 of 2022 refunding general obligation bonds, to be funded by the taxpayers within the District, to refund certain maturities of outstanding general obligation bonds. Interest payments are required on the outstanding bonds each February 1 and August 1 commencing February 1, 2022 (2021 Refunding Bonds) and August 1, 2022 (2022 Refunding Bonds).

The net proceeds of the 2021 Refunding Bonds will be used to refund 2012 Series C bonds aggregate principal amount $64,995,505, 2012 Series D aggregate principal amount $103,007,034, and 2018 Refunding Bonds aggregate principal of 20,710,000. The interest rates on the bonds are 0.286 – 2.978 percent with the final maturity August 1, 2039.

The net proceeds of the 2022 Refunding Bonds will be used to refund 2012 Series A bonds aggregate principal amount of $79,996,801 The interest rate on the bonds is 5.00 percent with the final maturity August 1, 2031.

2021 Certificates of Participation Issuance

On October 28, 2021, CVSS issued $102,535,000 of certificates of participation (COPS) to be funded by lease payments from the District. The COPS will provide financing for a number of capital projects in the District, including a center to be known as the Terry Bradley Education Center and pay delivery costs. The interest rates on the COPS are 0.435 – 3.568 percent with the final maturity June 1, 2051. Interest payments are required on the outstanding COPS each June 1 and December 1 commencing December 1, 2021.

68

Clovis Unified School District Notes to Financial Statements
June 30, 2021

Equipment Lease Purchase

On July 1, 2021, the District entered into a three‐year equipment lease agreement for $1,700,000. The equipment consisting of computers and related equipment: desktop computers, laptops, all replacement parts, additions, repairs, modifications, attachments, accessories, all substitutions, and replacements or exchanges. The interest rate is 0.94 percent with the first payment due August 15, 2021 and the final payment
August 15, 2024.

Note 17 ‐ Restatement of Prior Year Net Position and Fund Balance

As of July 1, 2020, the Clovis Unified School District adopted GASB Statement No. 84, Fiduciary Activities
(GASB 84). As a result of the implementation of GASB 84, the District has reclassified its associated student body activity previously reported as fiduciary funds to a governmental fund – Student Activity Fund. Additionally, the beginning net position of the Self Insurance Fund was restated to adjust for obligations that exceeded amounts that should have been reported as such within the fund that were previously recorded as liabilities. The following tables describe the effects of the restatements on beginning fund balance/net position.

Non‐Major Governmental Funds

Total Governmental Funds

Beginning Fund Balance previously reported at June 30, 2020 Reclassification of student activity funds from agency funds
to a special revenue fund

Fund Balance ‐ Beginning as Restated July 1, 2020

$ 87,307,109

2,276,488

$ 89,583,597

$ 270,262,056

2,276,488

$ 272,538,544

Government‐Wide Financial Statements
Beginning Government‐Wide Net Position previously reported at June 30, 2020
Reclassification of student activity funds from agency funds to a special revenue fund
Restatement of noncurrent liabilities relating to claims liabilities

$ 30,634,980

2,276,488

	4,725,451 

Net Position ‐ Beginning as Restated July 1, 2020	$ 37,636,919

Self Insurance

	Fund	

Beginning Net Position previously reported at June 30, 2020 Restatement of noncurrent liabilities relating to claims
liabilities and other postemployment obligations

$	‐

	26,132,568 

Net Position ‐ Beginning as Restated July 1, 2020	$ 26,132,568

69

Required Supplementary Information June 30, 2021
Clovis Unified School District

Clovis Unified School District Budgetary Comparison Schedule – General Fund
Year Ended June 30, 2021

Revenues
Local Control Funding Formula Federal sources
Other State sources Other local sources

Total revenues

Variances ‐ Positive
	(Negative)	
	Budgeted Amounts	                                            Final
	Original	 	Final	 	Actual	 	to Actual	

$363,732,508	395,449,309	$395,449,309	$	‐ 23,462,958           45,759,575           45,759,575                              ‐ 66,552,937	100,006,366         100,006,366                              ‐
	14,729,645  	10,920,091  	10,920,091  	‐ 

	468,478,048  	552,135,341  	552,135,341  	‐ 

Expenditures Current
Certificated salaries                                    200,321,171         208,875,486         208,875,486                              ‐ Classified salaries                                          84,742,990           86,907,636           86,907,636                              ‐ Employee benefits                                      139,520,625         139,981,768         139,981,768                              ‐ Books and supplies                                        23,249,962           35,945,451           35,945,451                              ‐ Services and operating expenditures         30,573,784           39,862,572           39,862,572                              ‐ Other outgo                                                        (483,918)                805,969                 805,969                              ‐ Capital outlay                                                             398,389              4,526,165              4,526,165                              ‐
Debt service
Debt service ‐ principal	892,710	‐	‐	‐
Debt service ‐ interest and other	               35,296  	35,296  	35,296  	‐ 

Total expenditures

Excess (Deficiency) of Revenues Over Expenditures

Other Financing Sources (Uses) Transfers in
Transfers out

Net financing sources (uses)

	479,251,009  	516,940,343  	516,940,343  	‐ 

	(10,772,961) 	35,194,998  	35,194,998  	‐ 

531,000	1,142,375	1,142,375	‐
	(4,078,013) 	(4,076,521)  	(4,076,521)  	‐ 

	(3,547,013) 	(2,934,146)  	(2,934,146)  	‐ 

Net Change in Fund Balances	(14,319,974)	32,260,852	32,260,852	‐

Fund Balance ‐ Beginning	     131,081,879  	131,081,879  	131,081,879  	‐ 

Fund Balance ‐ Ending	$116,761,905	$163,342,731	$163,342,731	$	‐

See Notes to Required Supplementary Information	70

Clovis Unified School District Schedule of Changes in the District’s Total OPEB Liability and Related Ratios
Year Ended June 30, 2021

	2021	       	2020	       	2019	       	2018	

Total OPEB Liability Service cost Interest
Difference between expected and actual experience Changes of assumptions
Benefit payments

Net change in total OPEB liability

Total OPEB Liability ‐ Beginning

Total OPEB Liability ‐ Ending

Covered Payroll

Total OPEB Liability as a Percentage of Covered Payroll

Measurement Date

$ 15,181,865 10,742,328 26,058,802 28,157,603
	(9,836,098)

70,304,500

	422,133,490 

$ 492,437,990

N/A 1

N/A 1

June 30, 2021

$ 12,130,038 11,432,331
‐ 49,513,934
	(8,063,788)

65,012,515

	357,120,975 

$ 422,133,490

N/A 1

N/A 1

June 30, 2020

$ 10,492,371 11,229,316
‐ 29,849,079
	(9,221,780)

42,348,986

	314,771,989 

$ 357,120,975

N/A 1

N/A 1

June 30, 2019

$ 10,186,768 10,741,686
‐ ‐
	(5,725,349)

15,203,105

	299,568,884 

$ 314,771,989

N/A 1

N/A 1

June 30, 2018

1 The OPEB Plan is not administered through a trust and contributions are not made based on a measure of pay; therefore, no measure of payroll is presented.

Note: In the future, as data becomes available, ten years of information will be presented.

See Notes to Required Supplementary Information	71

Clovis Unified School District Schedule of the District’s Proportionate Share of the Net OPEB Liability – MPP Program
Year Ended June 30, 2021

Year ended June 30,

Proportion of the net OPEB liability

Proportionate share of the net OPEB liability

Covered payroll

Proportionate share of the net OPEB liability as a percentage of it’s covered payroll

Plan fiduciary net position as a percentage of the total OPEB liability

Measurement date

	2021	

	0.6357%

 $	2,693,999 

N/A 1

N/A 1

	(0.71%) 

June 30, 2020

	2020	

	0.6295% 

 $	2,344,110 

N/A 1

N/A 1

	(0.81%) 

June 30, 2019

	2019	

	0.6221% 

	$2,381,187 

N/A 1

N/A 1

	(0.40%) 

June 30, 2018

	2018	

	0.6108% 

	$2,569,769 

N/A 1

N/A 1

	0.01% 

June 30, 2017

1 As of June 30, 2012, active members are no longer eligible for future enrollment in the MPP Program; therefore, the covered payroll disclosure is not applicable.

Note : In the future, as data becomes available, ten years of information will be presented.

See Notes to Required Supplementary Information	72

Clovis Unified School District Schedule of the District’s Proportionate Share of the Net Pension Liability
Year Ended June 30, 2021

CalSTRS

Proportion of the net pension liability

Proportionate share of the net pension liability
State’s proportionate share of the net pension liability

Total

Covered payroll

Proportionate share of the net pension liability as a percentage of its covered payroll

Plan fiduciary net position as a percentage of the total pension liability Measurement Date
CalPERS

Proportion of the net pension liability Proportionate share of the net pension liability Covered payroll
Proportionate share of the net pension liability as a percentage of its covered payroll

Plan fiduciary net position as a percentage of the total pension liability

Measurement Date

	2021	

	0.3648% 

$ 353,552,614
	182,256,414 

$ 535,809,028

 $ 197,774,778 

	178.77% 

                       72% June 30, 2020

	0.5830% 

 $ 178,895,219 

 $ 84,038,649 

	212.87% 

	70%

June 30, 2020

	2020	

	0.3558% 

321,370,136
	175,328,864 

$ 496,699,000

 $ 192,616,677 

	166.84% 

	73% 

June 30, 2019

	0.5770% 

 $ 168,151,626 

 $ 80,165,104 

	209.76% 

	70% 

June 30, 2019

	2019	

	0.3466% 

318,541,616
	182,379,973 

$ 500,921,589

 $ 188,468,233 

	169.02% 

	71% 

June 30, 2018

	0.5610% 

 $ 149,586,205 

 $ 74,208,963 

	201.57% 

	71% 

June 30, 2018

	2018	

	0.3374% 

312,018,523
	184,587,522 

$ 496,606,045

 $ 182,374,682 

	171.09% 

	69% 

June 30, 2017

	0.5487% 

 $ 130,998,817 

 $ 70,034,469 

	187.05% 

	72% 

June 30, 2017

Note: In the future, as data becomes available, ten years of information will be presented.

See Notes to Required Supplementary Information	73

Clovis Unified School District Schedule of the District’s Proportionate Share of the Net Pension Liability
Year Ended June 30, 2021

CalSTRS

Proportion of the net pension liability

Proportionate share of the net pension liability State’s proportionate share of the net pension liability

Total

Covered payroll

Proportionate share of the net pension liability as a percentage of its covered payroll

Plan fiduciary net position as a percentage of the total pension liability Measurement Date
CalPERS

Proportion of the net pension liability Proportionate share of the net pension liability Covered payroll
Proportionate share of the net pension liability as a percentage of its covered payroll

Plan fiduciary net position as a percentage of the total pension liability Measurement Date

Note: In the future, as data becomes available, ten years of information will be presented.

	2017	

	0.3363% 

271,983,817
	154,835,535 

$ 426,819,352

 $ 171,698,993 

	158.41% 

	70% 

June 30, 2016

	0.5366% 

 $ 105,981,422 

 $ 64,365,730 

	164.66% 

	74% 

June 30, 2016

	2016	

	0.3507% 

236,088,495
	124,864,788 

$ 360,953,283

 $ 163,040,732 

	144.80% 

	74% 

June 30, 2015

	0.5465% 

 $ 80,561,650 

 $ 60,511,656 

	133.13% 

	79% 

June 30, 2015

	2015	

	0.3264% 

190,731,688
	115,172,028 

$ 305,903,716

 $ 150,043,685 

	127.12% 

	77% 

June 30, 2014

	0.5259% 

 $ 59,703,034 

 $ 55,215,032 

	108.13% 

	83% 

June 30, 2014

See Notes to Required Supplementary Information	74

Clovis Unified School District Schedule of the District Contributions Year Ended June 30, 2021

	2021	       	2020	       	2019	       	2018	

CalSTRS

Contractually required contribution
Less contributions in relation to the contractually required contribution

$ 32,293,427
	32,293,427 

$ 33,819,487
	33,819,487 

$ 31,357,995
	31,357,995 

$ 27,195,966
	27,195,966 

Contribution deficiency (excess)	$	‐	$	‐	$	‐	$	‐

Covered payroll

Contributions as a percentage of covered payroll

 $ 199,959,300 

	16.15% 

 $ 197,774,778 

	17.10% 

 $ 192,616,677 

	16.28% 

 $ 188,468,233 

	14.43% 

CalPERS

Contractually required contribution
Less contributions in relation to the contractually required contribution

$ 16,845,513
	16,845,513 

$ 16,573,262
	16,573,262 

$ 14,479,421
	14,479,421 

$ 11,525,394
	11,525,394 

Contribution deficiency (excess)	$	‐	$	‐	$	‐	$	‐

Covered payroll

Contributions as a percentage of covered payroll

 $ 81,379,290 

	20.700% 

 $ 84,038,649 

	19.7210% 

 $ 80,165,104 

	18.0620% 

 $ 74,208,963 

	15.5310% 

Note: In the future, as data becomes available, ten years of information will be presented.

See Notes to Required Supplementary Information	75

Clovis Unified School District Schedule of the District Contributions Year Ended June 30, 2021

	2017	       	2016	       	2015	

CalSTRS

Contractually required contribution
Less contributions in relation to the contractually required contribution

$ 22,942,735
	22,942,735 

$ 18,423,302
	18,423,302 

$ 14,478,017
	14,478,017 

Contribution deficiency (excess)	$	‐	$	‐	$	‐

Covered payroll

Contributions as a percentage of covered payroll

 $ 182,374,682 

	12.58% 

 $ 171,698,993 

	10.73% 

 $ 163,040,732 

	8.88% 

CalPERS

Contractually required contribution
Less contributions in relation to the contractually required contribution

$	9,726,387
	9,726,387 

$	7,625,408
	7,625,408 

$	7,122,827
	7,122,827 

Contribution deficiency (excess)	$	‐	$	‐	$	‐

Covered payroll

Contributions as a percentage of covered payroll

 $ 70,034,469 

	13.8880% 

 $ 64,365,730 

	11.8470% 

 $ 60,511,656 

	11.7710% 

Note: In the future, as data becomes available, ten years of information will be presented.

See Notes to Required Supplementary Information	76

Clovis Unified School District Notes to Required Supplementary Information
June 30, 2021

Note 1 ‐	Purpose of Schedules

Budgetary Comparison Schedule

The District employs budget control by object codes and by individual appropriation accounts. Budgets are prepared on the modified accrual basis of accounting in accordance with accounting principles generally accepted in the United State of America as prescribed by the Governmental Accounting Standards Board and provisions of the California Education Code. The governing board is required to hold a public hearing and adopt an operating budget no later than July 1 of each year. The adopted budget is subject to amendment throughout the year to give consideration to unanticipated revenue and expenditures primarily resulting from events unknown at the time of budget adoption with the legal restriction that expenditures cannot exceed appropriations by major object account.

The amounts reported as the original budgeted amounts in the budgetary statements reflect the amounts when the original appropriations were adopted. The amounts reported as the final budgeted amounts in the budgetary statements reflect the amounts after all budget amendments have been accounted for.

This schedule presents information for the original and final budgets and actual results of operations, as well as the variances from the final budget to actual results of operations.

Schedule of Changes in the District’s OPEB Liability and Related Ratios

This schedule presents information on the District’s changes in the OPEB liability, including beginning and ending balances, and the OPEB liability. In the future, as data becomes available, ten years of information will be presented.

 Changes in Benefit Terms – There were no changes in the benefit terms since the previous valuation.  Changes of Assumptions – The inflation rate was changed from 3.00 percent to 2.75 percent since last
study and the beginning health care cost trend rate changed from 5.40 percent to 5.00 percent.

Schedule of the District’s Proportionate Share of the Net OPEB Liability ‐ MPP Program

This schedule presents information on the District’s proportionate share of the net OPEB Liability ‐ MPP Program and the plans’ fiduciary net position. In the future, as data becomes available, ten years of information will be presented.

 Changes in Benefit Terms – There were no changes in the benefit terms since the previous valuation.
 Changes of Assumptions – The plan rate of investment return assumption was changed from 3.50 percent to 2.21 percent since the previous valuation.

77

Clovis Unified School District Notes to Required Supplementary Information
June 30, 2021

Schedule of the District’s Proportionate Share of the Net Pension Liability

This schedule presents information on the District’s proportionate share of the net pension liability (NPL), the plans’ fiduciary net position and, when applicable, the State’s proportionate share of the NPL associated with the District. In the future, as data becomes available, ten years of information will be presented.

 Changes in Benefit Terms – There were no changes in benefit terms since the previous valuations for both CalSTRS and CalPERS.
 Changes of Assumptions – There were no changes in economic assumptions for either the CalSTRS or CalPERS plans from the previous valuations.

Schedule of District Contributions

This schedule presents information on the District’s required contribution, the amounts actually contributed, and any excess or deficiency related to the required contribution. In the future, as data becomes available, ten years of information will be presented.

78

Supplementary Information June 30, 2021
Clovis Unified School District

Clovis Unified School District Schedule of Expenditures of Federal Awards Year Ended June 30, 2021

Federal Grantor/Pass‐Through Grantor/Program or Cluster Title

Federal Financial Pass‐Through Assistance                 Entity Listing/Federal        Identifying
CFDA Number	Number

Federal Expenditures

U.S. Department of Education
Indian Education ‐ Grants to Loacal Educational Agencies Federal Pell Grant Program
School Climate Tranformation
Passed Through California Department of Education (CDE) Special Education Cluster
Special Education Grants to States ‐ Basic Local Assistance Special Education Grants to States ‐ Mental Health Special Education Grants to States ‐ Private School ISP

84.060 84.063 84.184G

84.027 84.027A 84.027

[1]	$	143,987 [1]                          165,312 [1]                          326,075

13379	7,141,186 14468                       491,497 10115                         33,484

Subtotal (84.027)	7,666,167

Special Education Preschool Grants
Special Education Preschool Grants ‐ Alternate Dispute Resolution
Special Education Preschool Grants ‐ Preschool Staff Development

84.173	13430

84.173A	13007

84.173	13431

117,472

20,998

598

Subtotal (84.173)

Total Special Education Cluster

139,068

7,805,235

COVID‐19 Elementary and Secondary School Emergency Relief Fund (ESSER)
COVID‐19 Elementary and Secondary School Emergency Relief Fund II (ESSER II)
COVID‐19 Governor’s Emergency Education Relief Fund (GEER COVID‐19, Cares Act Child Nutirition Supplemental Meal
Reimbursement

84.425D	15536

84.425D                  15547 84.425C                  15517

84.425	15535

2,332,878

7,231,907 1,312,973

772,556

Subtotal (84.425)	11,650,314

Adult Education ‐ Basic Grants to States: Adult Basic                            84.002                    14508 Adult Education ‐ Basic Grants to States: Adult Secondary                  84.002                    13978

230,895 414,296

Subtotal (84.002)	645,191

Title I Grants to Local Educational Agencies
ESEA: ESSA School Impovement (CSI) Funding for LEAs

84.010                    14329 84.010                    15438

6,542,477 522,170

Subtotal (84.010)	7,064,647

English Language Acquisition State Grants ‐ IEP English Language Acquisition State Grants ‐ LEP

84.365                    15146 84.365                    14346

21,608 196,277

Subtotal (84.365)	217,885

[1] Not applicable, District is direct funded

See Notes to Supplementary Information	79

Clovis Unified School District Schedule of Expenditures of Federal Awards Year Ended June 30, 2021

Federal Grantor/Pass‐Through Grantor/Program or Cluster Title

Federal Financial Pass‐Through Assistance                 Entity
Listing/Federal	Identifying	Federal
 CFDA Number  	Number	  Expenditures 

U.S. Department of Education

Passed Through California Department of Education (CDE) Career and Technical Education ‐ Basic Grants to States,
Secondary	84.048 Career and Technical Education ‐ Basic Grants to States, Rural
Community Equipment	84.048

Subtotal (84.048)

Supporting Effective Instruction State Grants ‐ Teacher
Quality	84.367 Student Support and Academic Enrichment Program	84.424 Special Education‐Grants for Infants and Families	84.181 Rehabilitation Services Vocational Rehabilitation Grants
to States ‐ Workability II	84.126

Total U.S. Department of Education

U.S. Department of the Treasury
Passed Through California Department of Education COVID‐19, Coronavirus Relief Fund (CRF): Learning Loss
Mitigation	21.019

Total U.S. Department of the Treasury

U.S. Department of Defense
ROTC Language and Culture Training Grants	12.357

U.S. Department of Agriculture
Passed Through California Department of Education Child Nutrition Cluster
National School Lunch Program	10.555 National School Lunch Program ‐ Meal Supplements	10.555 National School Lunch Program ‐ Commodity
Supplemental Food	10.555

Subtotal (10.555)

School Breakfast Program ‐ Especially Needy Breakfast                10.553 National School Lunch Program ‐ Summer Food Program            10.559

Total Child Nutrition Cluster

Total U.S. Department of Agriculture

14894	158,817

15295	              72,183 

	231,000 

14341	391,514 15396	552,218 23761                        81,623

10006	            156,608 

	29,431,609 

25516	      17,976,443 

	17,976,443 

[1]	              39,297 

13391                      120,670 13396                        77,537

13391	        1,015,966 

	1,214,173 

13526	3,368
13004	        8,752,838 

	9,970,379 

	9,970,379 

Total Federal Financial Assistance	$ 57,417,728

[1] Not applicable, District is direct funded

See Notes to Supplementary Information	80

Clovis Unified School District Local Education Agency Organization Structure
June 30, 2021

Organization

The Clovis Unified School District was established in 1960 and consists of an area comprising approximately 198 square miles. The District operates thirty‐three elementary schools, five intermediate schools, five high schools, three alternative education schools, one adult school, the Clovis Online Charter School, and the Center
for Advanced Research and Technology as a joint high school with Fresno Unified School District. There were no boundary changes during the year.

Governing Board

Member

Tiffany Stoker Madsen David DeFrank Yolanda Moore
Hugh Awtrey Steven G. Fogg Susan K. Hatmaker Elizabeth Sandoval

Office

President Vice‐President Clerk
Member Member Member Member

Term Expires

2022 2024 2024 2024 2024 2022 2022

Administration

Eimear O’Brien, Ed.D. Don Ulrich, Ed. D. Michael Johnston Barry Jager
Norm Anderson Susan Rutledge Denise Cariaga

Superintendent
Deputy Superintendent
Associate Superintendent, Administrative Services
Associate Superintendent, Human Resources and Employee Relations Associate Superintendent, School Leadership
Assistant Superintendent, Business Services Director of Budget & Finance

See Notes to Supplementary Information	81

Clovis Unified School District Schedule of Instructional Time
Year Ended June 30, 2021

Number of Actual Days Traditional                Multitrack
	Grade Level	 	Calendar	 	Calendar	

Number of Days Credited
	Form J‐13A* 

Total Days
	Offered	 	Status	

Kindergarten	180	N/A Grades 1 ‐ 3
Grade 1	180	N/A Grade 2	180	N/A Grade 3	180	N/A
Grades 4 ‐ 8
Grade 4	180	N/A Grade 5	180	N/A Grade 6	180	N/A Grade 7	180	N/A Grade 8	180	N/A
Grades 9 ‐ 12
Grade 9	180	N/A Grade 10	180	N/A Grade 11	180	N/A Grade 12	180	N/A

‐	180	Complied

‐	180	Complied ‐	180	Complied ‐	180	Complied

‐	180	Complied ‐	180	Complied ‐	180	Complied ‐	180	Complied ‐	180	Complied

‐	180	Complied ‐	180	Complied ‐	180	Complied ‐	180	Complied

* The District received an approved J‐13A for no days.

See Notes to Supplementary Information	82

Clovis Unified School District Reconciliation of Annual Financial and Budget Report with Audited Financial Statements
Year Ended June 30, 2021

The following adjustments was made to the Unaudited Actual Financial Report, which required reconciliation to the audited financial statements at June 30, 2021.

Self Insurance
	Fund	

Net Position
Balance, June 30, 2021, Unaudited Actuals
Decrease in claims liabilities and other postemployment benefit obligations

$	‐

	30,921,668 

Balance, June 30, 2021, Audited Financial Statements	$	30,921,668

See Notes to Supplementary Information	83

Clovis Unified School District Schedule of Financial Trends and Analysis Year Ended June 30, 2021

(Budget)
2022 1	             2021	 	2020	 	2019	

General Fund Revenues Other sources

Total Revenues
and Other Sources

Expenditures
Other uses and transfers out

Total Expenditures and Other Uses

Increase in Fund Balance

$ 615,895,222	$	552,135,341	$	506,014,389	$	502,764,929
	5,036,000  	1,142,375  	2,584,851  	3,729,339 

	620,931,222  	553,277,716  	508,599,240  	506,494,268 

607,793,732	516,940,343	483,038,866	477,580,830
	5,923,967  	4,076,521  	9,903,108  	7,854,336 

	613,717,699  	521,016,864  	492,941,974  	485,435,166 

	7,213,523  	32,260,852  	15,657,266  	21,059,102 

Ending Fund Balance

Available Reserves 2

$ 170,556,254

$ 124,067,028

$	163,342,731

$	116,853,507

$	131,081,879

$	99,623,391

$	115,424,613

$	92,721,804

Available Reserves as a Percentage of Total Outgo

Long‐Term Liabilities

Average Daily Attendance at P‐2

20.22%

Not Available

41,560

22.43%

$ 1,561,879,197

41,558

20.21%

$ 1,427,129,549

41,558

19.10%

$ 1,312,296,293

41,166

The General Fund balance has increased by $47,918,118 over the past two years. The fiscal year 2021‐2022 budget projects an increase of $7,213,523 (four percent). For a district this size, the State recommends available reserves of at least two percent of total General Fund expenditures, transfers out, and other uses (total outgo).

The District has incurred operating surpluses in each of the past three years and anticipates incurring an operating surplus during the 2021‐2022 fiscal year. Total long‐term obligations have increased by $255,578,853 over the past two years due to the issuance of bonds for facilities additions and improvements, and increases in the District’s net pension liability and other postemployment benefits obligations.

Average daily attendance has increased by 392 over the past two years. Additional growth of two ADA is anticipated during fiscal year 2021‐2022.

1 Budget 2022 is included for analytical purposes only and has not been subjected to audit.
2 Available reserves consist of all unassigned fund balances including all amounts reserved for economic uncertainties contained within the General Fund.

See Notes to Supplementary Information	84

Clovis Unified School District Schedule of Charter Schools
Year Ended June 30, 2021

Name of Charter School

Clovis Online School

Charter
	Number	

1006

Included in
 Audit Report 

Yes

See Notes to Supplementary Information	85

Clovis Unified School District Combining Balance Sheet – Non‐Major Governmental Funds
June 30, 2021

Assets
Deposits and investments
Receivables
Due from other funds Stores inventories

Total Student	Adult	Child	Deferred	Capital	County School     Special Reserve	Other Debt	Non‐Major
Activities	Charter School	Education	Development	Cafeteria	Maintenance	Facilities	Facilities	Fund for Capital	Service	Governmental
	Fund	 	Fund	 	Fund	 	Fund	 	Fund	 	Fund	 	Fund	 	Fund	  Outlay Projects  	Fund	 	Funds	

$ 2,256,869	$ 6,194,267	$ 2,942,072	$     523,219	$ 5,586,337	$ 1,276,501	$40,211,022	$ 41,261,264	$ 15,228,864	$	84,173	$ 115,564,588 ‐              144,216              551,695              925,454              377,476                           ‐                    3,716                              ‐                                ‐                           ‐               2,002,557 ‐              863,196                94,342                           ‐                           ‐                           ‐               316,867                              ‐                  269,904                           ‐               1,544,309
	‐  	‐  	47,014  	‐  	931,728  	‐  	‐  	‐  	‐  	‐  	978,742 

Total assets	$ 2,256,869	$ 7,201,679	$ 3,635,123	$ 1,448,673	$ 6,895,541	$ 1,276,501	$40,531,605	$ 41,261,264	$ 15,498,768	$	84,173	$ 120,090,196

Liabilities and Fund Balances

Liabilities Overdrafts
Accounts payable Due to other funds

Total liabilities

Fund Balances Nonspendable Restricted Committed Assigned

Total fund balances

$                   ‐      $                   ‐      $                   ‐      $                   ‐      $     106,020      $                   ‐      $                    ‐      $                     ‐      $                       ‐      $                   ‐      $          106,020 ‐                  6,604                24,912                42,975              585,953              617,860               336,014                852,505                  117,560                           ‐               2,584,383
	‐  	‐  	‐  	136,371  	262,617  	‐  	‐  	106,735  	‐  	82,988  	588,711 

	‐  	6,604  	24,912  	179,346  	954,590  	617,860  	336,014  	959,240  	117,560  	82,988  	3,279,114 

‐                           ‐                50,514                           ‐              931,728                           ‐                            ‐                             ‐                                ‐                           ‐                  982,242 2,256,869              185,205                           ‐              451,593          5,009,223                           ‐         40,195,591          40,302,024            15,381,208                  1,185          103,782,898 ‐                           ‐          3,559,697                           ‐                           ‐              658,641                             ‐                             ‐                                ‐                           ‐               4,218,338
	‐  	7,009,870  	‐  	817,734  	‐  	‐  	‐  	‐  	‐  	‐  	7,827,604 

	2,256,869  	7,195,075  	3,610,211  	1,269,327  	5,940,951  	658,641       40,195,591  	40,302,024  	15,381,208  	1,185  	116,811,082 

Total liabilities and
fund balances	$ 2,256,869	$ 7,201,679	$ 3,635,123	$ 1,448,673	$ 6,895,541	$ 1,276,501	$40,531,605	$ 41,261,264	$ 15,498,768	$	84,173	$ 120,090,196

See Notes to Supplementary Information	86

Clovis Unified School District Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Non‐Major Governmental Funds
Year Ended June 30, 2021

Student Activities Fund

Charter School Fund

Adult Education Fund

Child Development Fund

Cafeteria Fund

Deferred Maintenance Fund

Capital Facilities Fund

County School Facilities Fund

Special Reserve Fund for Capital Outlay Projects

Other Debt Service Fund

Total Non‐Major Governmental Funds

Revenues
Local Control Funding Formula	$ Federal sources
Other State sources Other local sources

Total revenues

Expenditures Current
Instruction Instruction‐related activities
Supervision of instruction Instructional library, media, and
technology
School site administration Pupil services
Food services
All other pupil services Administration
All other administration Plant services
Ancillary services
Facility acquisition and construction Debt service
Principal

Total expenditures

‐       $ ‐
‐ 1,502,300

1,502,300

‐

‐

‐ ‐

‐ ‐

‐ ‐
1,521,919 ‐

‐

1,521,919

4,740,289       $ 32,532
342,836 156,144

5,271,801

2,553,248

1,530

75,816 527,326

‐ 662,881

74,355 59,446 ‐
‐

‐

3,954,602

‐      $ 882,686
2,602,082 1,429,919

4,914,687

2,453,751

476,932

149,455 1,781,322

‐ 323,957

116,660 300,216 ‐ 10,641

‐

5,612,934

‐ 314,213
5,710,494 429,988

6,454,695

4,095,048

‐

‐ ‐

‐ 158,568

477,992 31,508 ‐ 86,878

315,000

5,164,994

$		‐       $ 10,742,935
858,493 101,832

11,703,260

‐

‐

‐ ‐

12,538,326 ‐

548,982 ‐ ‐ ‐

‐

13,087,308

‐ ‐ ‐
26,756

26,756

‐

‐

‐ ‐

‐ ‐

‐ 754,644 ‐
1,382,434

‐

2,137,078

$	 ‐ ‐ ‐
24,879,975

24,879,975

‐

‐

‐ ‐

‐ ‐

‐ 1,867,497 ‐
539,491

‐

2,406,988

$	 ‐       $ ‐
11,981,645 (322,046)

11,659,599

‐

‐

‐ ‐

‐ ‐

‐ ‐ ‐
7,009,456

‐

7,009,456

‐       $ ‐
‐ 160,869

160,869

‐

‐

‐ ‐

‐ ‐

‐ 827,746 ‐ 429,799

‐

1,257,545

‐       $       4,740,289 ‐	11,972,366 ‐	21,495,550
2,847	28,368,584

2,847	66,576,789

‐	9,102,047

‐	478,462

‐                   225,271 ‐               2,308,648

‐             12,538,326 ‐               1,145,406

‐	1,217,989 ‐	3,841,057 ‐	1,521,919 ‐	9,458,699

‐	315,000

‐	42,152,824

Excess (Deficiency) of Revenues Over Expenditures

Other Financing Sources (Uses) Transfers in
Transfers out

Net Financing Sources (Uses)

Net Change in Fund Balances

Fund Balance ‐ Beginning, as Restated

(19,619)

‐ ‐

‐

(19,619)

2,276,488

1,317,199

‐ ‐

‐

1,317,199

5,877,876

(698,247)

424,000 ‐

424,000

(274,247)

3,884,458

1,289,701

‐ (804,679)

(804,679)

485,022

784,305

(1,384,048)

‐ ‐

‐

(1,384,048)

7,324,999

(2,110,322)

2,700,000 ‐

2,700,000

589,678

68,963

22,472,987

‐ (336,000)

(336,000)

22,136,987

18,058,604

4,650,143

‐ (106,735)

(106,735)

4,543,408

35,758,616

(1,096,676)

1,009,922 ‐

1,009,922

(86,754)

15,467,962

2,847

‐ (82,988)

(82,988)

(80,141)

81,326

24,423,965

4,133,922 (1,330,402)

2,803,520

27,227,485

89,583,597

Fund Balance ‐ Ending	$       2,256,869       $       7,195,075       $       3,610,211      $       1,269,327       $       5,940,951       $	658,641       $ 40,195,591       $ 40,302,024       $ 15,381,208       $	1,185       $ 116,811,082

See Notes to Supplementary Information	87

Clovis Unified School District Notes to Supplementary Information June 30, 2021

Note 1 ‐	Purpose of Schedules

Schedule of Expenditures of Federal Awards (SEFA)

Basis of Presentation
The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of the Clovis Unified School District (the District) under programs of the federal government for the year ended June 30, 2021. The information is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of the Clovis Unified School District, it is not intended to and does not present the financial position or changes in net position or fund balances of the District.

Summary of Significant Accounting Policies
Expenditures reported in the schedule are reported on the modified accrual basis of accounting. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient.

Indirect Cost Rate
The District does not draw for indirect administrative expenses and has not elected to use the ten percent de minimus cost rate.

Food Donation
Nonmonetary assistance is reported in this schedule at the fair market value of the commodities received and disbursed. For the fiscal year ended June 30, 2021, the District had used $1,015,966 in food commodities.

SEFA Reconciliation
The following schedule provides reconciliation between revenues reported on the Statement of Revenues, Expenditures, and Changes in Fund Balances and the related expenditures reported on the Schedule of Expenditures of Federal Awards. The reconciling amount consists of the unspent Child Development: Coronavirus Response and Relief Supplemental Apportionments Act revenue received.

Federal Financial Assistance Listing/Federal
CFDA Number	Amount

Description
Total Federal Revenues reported on the financial statements Child Development: Coronavirus Response and Relief
Supplemental Appropriations Act

$ 57,731,941

93.575	             (314,213) 

Total Schedule of Expenditures of Federal Awards	$ 57,417,728

88

Clovis Unified School District Notes to Supplementary Information June 30, 2021

Local Education Agency Organization Structure

This schedule provides information about the District’s boundaries and schools operated, members of the governing board, and members of the administration.

Schedule of Instructional Time

This schedule presents information on the number of instructional days offered by the District and whether the District complied with the provisions of Education Code Section 43504.

Reconciliation of Annual Financial and Budget Report with Audited Financial Statements

This schedule provides the information necessary to reconcile the fund balance of all funds reported on the Unaudited Actual Financial Report to the audited financial statements.

Schedule of Financial Trends and Analysis

This schedule discloses the District’s financial trends by displaying past years’ data along with current year budget information. These financial trend disclosures are used to evaluate the District’s ability to continue as a going concern for a reasonable period of time.

Schedule of Charter Schools

This schedule lists all Charter Schools chartered by the District, and displays information for each Charter School on whether or not the Charter School is included in the District audit.

Non‐Major Governmental Funds ‐ Combining Balance Sheet and Combining Statement of Revenues, Expenditures, and Changes in Fund Balances

The Non‐Major Governmental Funds Combining Balance Sheet and Combining Statement of Revenues, Expenditures and Changes in Fund Balances is included to provide information regarding the individual funds that have been included in the Non‐Major Governmental Funds column on the Governmental Funds Balance Sheet and Statement of Revenues, Expenditures, and Changes in Fund Balances.

89

Independent Auditor’s Reports June 30, 2021
Clovis Unified School District

Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards

To the Governing Board Clovis Unified School District Clovis, California

We have audited, 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, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Clovis Unified School District, as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise Clovis Unified School District’s basic financial statements and have issued our report thereon dated [REPORT DATE].

Emphasis of Matter – Change in Accounting Principle and Correction of Error
As discussed in Notes 1 and 17 to the financial statements, Clovis Unified School District has adopted the provisions of GASB Statement No. 84, Fiduciary Activities, which has resulted in a restatement of the net position and fund balance as of July 1, 2020. Additionally, an error was discovered in the current year related to net position reserves of the Self Insurance Fund that were previously recorded as liabilities. Our opinions are not modified with respect to this matter.

Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered Clovis Unified School District’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Clovis Unified School District’s internal control. Accordingly, we do not express an opinion on the effectiveness of Clovis Unified School District’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

90

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be significant deficiencies. We did identify deficiencies in internal controls, described in the accompanying Schedule of Financial Statement Findings as item 2021‐001, that we considered to be a material weaknesses.

Compliance and Other Matters
As part of obtaining reasonable assurance about whether Clovis Unified School District’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed an instances of noncompliance that is required to be reported under Government Auditing Standards described in the accompanying Schedule of State Compliance Findings and Questioned Costs as item 2021‐002.

Clovis Unified School District’s Response to Findings
Clovis Unified School District's response to the findings identified in our audit are described in the accompanying schedule of Financial Statement Findings and State Compliance Findings and Questioned Costs, respectively. Clovis Unified School District's responses were not subject to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on them.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Preliminary Draft
For Discussion Purposes Only

Fresno, California [REPORT DATE]

91

Independent Auditor’s Report on Compliance for Each Major Program and on Internal Control over Compliance Required by the Uniform Guidance

To the Governing Board Clovis Unified School District Clovis, California

Report on Compliance for Each Major Federal Program
We have audited Clovis Unified School District’s compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of Clovis Unified School District’s major federal programs for the year ended June 30, 2021. Clovis Unified School District’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.

Management’s Responsibility
Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs.

Auditor’s Responsibility
Our responsibility is to express an opinion on compliance for each of Clovis Unified School District’s major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about Clovis Unified School District’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.

We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of Clovis Unified School District’s compliance.

92

Opinion on Each Major Federal Program
In our opinion, Clovis Unified School District complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2021.

Report on Internal Control over Compliance
Management of Clovis Unified School District is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered Clovis Unified School District’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Clovis Unified School District’s internal control over compliance.

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
Preliminary Draft
For Discussion Purposes Only

Fresno, California [REPORT DATE]

93

Independent Auditor’s Report on State Compliance

To the Governing Board Clovis Unified School District Clovis, California

Report on State Compliance
We have audited Clovis Unified School District’s (the District) compliance with the types of compliance requirements described in the 2020‐2021 Guide for Annual Audits of K‐12 Local Education Agencies and State Compliance Reporting, applicable to the state laws and regulations listed in the table below for the year ended June 30, 2021.

Management’s Responsibility
Management is responsible for compliance with the state laws and regulations as identified in the table below.

Auditor’s Responsibility
Our responsibility is to express an opinion on the District’s compliance with state laws and regulations based on our audit of the types of compliance requirements referred to below. We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of the 2020‐2021 Guide for Annual Audits of K‐12 Local Education Agencies and State Compliance Reporting. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the compliance requirements listed below has occurred. An audit includes examining, on a test basis, evidence about the District’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.

We believe that our audit provides a reasonable basis for our opinion on state compliance. However, our audit does not provide a legal determination of the District’s compliance.

94

Compliance Requirements Tested
In connection with the audit referred to above, we selected and tested transactions and records to determine the District’s compliance with laws and regulations applicable to the following items:

LOCAL EDUCATION AGENCIES OTHER THAN CHARTER SCHOOLS Attendance and Distance Learning
Teacher Certification and Misassignments Kindergarten Continuance
Instructional Time Instructional Materials
Ratios of Administrative Employees to Teachers Classroom Teacher Salaries
Early Retirement Incentive Gann Limit Calculation
School Accountability Report Card K‐3 Grade Span Adjustment
Apprenticeship: Related and Supplemental Instruction Comprehensive School Safety Plan
District of Choice

SCHOOL DISTRICTS, COUNTY OFFICES OF EDUCATION, AND CHARTER SCHOOLS
California Clean Energy Jobs Act
Proper Expenditure of Education Protection Account Funds Unduplicated Local Control Funding Formula Pupil Counts Independent Study ‐ Course Based

CHARTER SCHOOLS Attendance
Mode of Instruction
Nonclassroom‐Based Instruction/Independent Study Determination of Funding for Nonclassroom‐Based Instruction Charter School Facility Grant Program

Procedures

	Performed	

Yes Yes Yes Yes Yes Yes Yes
No (see below) Yes Yes Yes
No (see below) Yes
No (see below)

No (see below) Yes Yes
No (see below)

Yes Yes Yes Yes
No (see below)

The District did not offer an Early Retirement Incentive Program during the current year; therefore, we did not perform procedures related to the Early Retirement Incentive Program.

We did not perform Apprenticeship: Related and Supplemental Instruction procedures because the program is not offered by the District.

We did not perform District of Choice procedures because the program is not offered by the District.

We did not perform California Clean Energy Jobs Act procedures because the related procedures were performed in a previous year.

95

The District and the Charter School do not offer an Independent Study ‐ Course Based Program; therefore, we did not perform any procedures related to the Independent Study ‐ Course Based Program.

Additionally, we did not perform procedures for the Charter School Facility Grant Program because the District did not receive funding for this program.

Basis for Qualified Opinion on Unduplicated Local Control Funding Formula Pupil Counts
As described in the accompanying Schedule of State Compliance Findings and Questioned Costs, Clovis Unified School District did not comply with requirements regarding Unduplicated Local Control Funding Formula Pupil Counts, as identified in Findings 2021‐001. Compliance with such requirements is necessary, in our opinion, for Clovis Unified School District to comply with the requirements referred to above.

Qualified Opinion on Unduplicated Local Control Funding Formula Pupil Counts
In our opinion, except for the noncompliance described in the Basis for Qualified Opinion paragraph, Clovis Unified School District complied, in all material respects, with the compliance requirements referred to above for the year ended June 30, 2021.

Clovis Unified School District’s response to the noncompliance finding identified in our audit is described in the accompanying Schedule of State Compliance Findings and Questioned Costs. Clovis Unified School District’s response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response.

Unmodified Opinion on Each of the Other Programs
In our opinion, Clovis Unified School District complied, in all material respects, with the laws and regulations of the state programs referred to above for the year ended June 30, 2021, except as described in the accompanying Schedule of State Compliance Findings and Questioned Costs.

The purpose of this report on state compliance is solely to describe the results of our testing based on the requirements of the 2020‐2021 Guide for Annual Audits of K‐12 Local Education Agencies and State Compliance Reporting. Accordingly, this report is not suitable for any other purpose.
Preliminary Draft
For Discussion Purposes Only

Fresno, California [REPORT DATE]

96

Schedule of Findings and Questioned Costs June 30, 2021
Clovis Unified School District

Clovis Unified School District Summary of Auditor’s Results
Year Ended June 30, 2021

Financial Statements

Type of auditor’s report issued

Internal control over financial reporting Material weaknesses identified
Significant deficiencies identified not considered to be material weaknesses

Noncompliance material to financial statements noted?

Federal Awards

Internal control over major program Material weaknesses identified
Significant deficiencies identified not considered to be material weaknesses

Type of auditor’s report issued on compliance for major programs

Any audit findings disclosed that are required to be reported in accordance with Uniform Guidance 2 CFR 200.516(a)

Identification of major programs

Name of Federal Program or Cluster

COVID‐19 Elementary and Secondary School Emergency Relief Fund (ESSER)
COVID‐19 Elementary and Secondary School Emergency Relief Fund II (ESSER II)
American Rescue Plan: Elementary and Secondary School Emergency Relief Fund III (ESSER III)
COVID‐19 Governor’s Emergency Education Relief Fund (GEER) COVID‐19, Coronavirus Relief Fund (CRF): Learning Loss
Mitigation
Title I Grants to Local Educational Agencies

Dollar threshold used to distinguish between type A and type B programs

Auditee qualified as low‐risk auditee?

State Compliance

Type of auditor’s report issued on compliance for programs

Unmodified for all programs except for the following program which was qualified

Name of Program

Unduplicated Local Control Funding Formula Pupil Counts

Unmodified

Yes

None Reported

No

No

None Reported

Unmodified

No

Federal Financial Assistance
	Listing/Federal CFDA Number	

84.425D

84.425D

84.425U 84.425C

21.019 84.010

$ 1,722,532

Yes

Unmodified

97

Clovis Unified School District Financial Statement Findings
Year Ended June 30, 2021

The following finding represents a material weakness related to the financial statements that is required to be reported in accordance with Government Auditing Standards. The finding has been coded as follows:

Five Digit Code

30000

AB 3627 Finding Type

Internal Control

2021‐001	30000

Internal Control Over Financial Reporting

Criteria

School districts are responsible for maintaining accurate financial statement information including properly recording and reporting all financial transactions and balances and to ensure compliance with laws and regulations that, if violated, could have a material impact on the financial statements.

Condition

As noted in the State Awards Findings and Questioned Costs section of this report, the District was found to be out of compliance with certain requirements of the Unduplicated Pupil Counts compliance requirements causing an overstatement in the number of eligible students. The overstatement caused the District to be overpaid an amount of Local Control Funding Formula State apportionments that was nearly material to the financial statements. Additionally, in testing the Self Insurance Funds ending liabilities balances, we noted ending balances that were not adjusted to the actuarially determined balances.

Effect

Some related amounts were material and an audit adjustment was necessary both at the fund reporting level as well as additional full accrual conversion entries for the entity wide financial statements.

Cause

It has become known that, at times, adjustments to student data within the local student database do not always accurately upload to the State’s CalPADS database system. Typically, these issues are found when students who qualified as a Free/Reduced Price Meal classification changes to a Paid status. The Self Insurance Fund adjustments were due to management calculating amounts to be held in reserve for variances inherent of claims estimates, but had recorded such amounts as obligations.

98

Clovis Unified School District Financial Statement Findings
Year Ended June 30, 2021

This finding is not a repeat of or related to a finding in the previous year.

Recommendation

The District should implement procedures to ensure the classifications reported to CalPADS are supported by the accurate survey results. A sample should be pulled after the first month of the issuance of the survey to verify if it is classifying pupils correctly before October. Additionally, the ending liability balances relating to estimated claims payments should be adjusted to the actuarially determined estimates.

Corrective Action Plan and Views of Responsible Officials

Management concurs with the finding. Please refer to the response to the State Compliance finding response. Additionally, in the future, management will only record liabilities that are validated or determined by actuarially determined estimates or actual obligations and will reflect additional “reserves” as net position and not liabilities.

99

Clovis Unified School District Federal Awards Findings and Questioned Costs
Year Ended June 30, 2021

None reported.

100

Clovis Unified School District State Compliance Findings and Questioned Costs
Year Ended June 30, 2021

The following finding represents an instance of noncompliance and questioned costs relating to compliance with state laws and regulations. The finding has been coded as follows:

Five Digit Code

40000

AB 3627 Finding Type

State Compliance

2021‐002	40000

Unduplicated Local Control Funding Formula Pupil Count

Criteria

With the Local Control Funding Formula, school districts receive supplemental funding known as the Supplement Grant and Concentration Grant. The amount of funding received is generated by the number of students who are either English Learners (EL) or participants in the Free/Reduced meal program in accordance with Educational Code Sections 2574(b)(3)(C), 42238.02(b)(3)(b), and 41020.

Condition

During the audit of the unduplicated local control funding formula pupil count, numerous pupils were incorrectly reported as free/reduced on the CalPADS report based on their alternative income verification survey.

Questioned Cost

The above mention net effect has a questioned cost of $(1,900,860). The estimated questioned cost was calculated using the California Department of Education provided "Audit Finding Calculator for Fiscal year 2019‐2020 and Each Year Thereafter."

Effect

Sixty pupils were initially selected as a testing sample and during our audit we determined 19 pupils were incorrectly classified as free or reduced. Through 100 percent testing, a total of 3,418 pupils were determined to be incorrectly classified resulting in the total 20‐21 unduplicated pupil count going from 23,394 to 19,976.

Cause

Due to Covid‐19, the annual required income verification was performed via an electronic survey. It appears when the information was uploaded to CALPADS, the software incorrectly transferred many “Paid/Denied” students as either “Free” or “Reduced.”

101

Clovis Unified School District State Compliance Findings and Questioned Costs
Year Ended June 30, 2021

Repeat Finding (Yes or No)

This is the first year this finding was noted and is not a repeat from a prior year nor was it related to a finding in the previous audit year.

Recommendation

The District should implement procedures to ensure the classifications reported to CalPADS are supported by the accurate survey results. A sample should be pulled after the first month of the issuance of the survey to verify if it is classifying pupils correctly before October.

Corrective Action Plan and Views of Responsible Officials

The District will implement procedures to ensure that accurate survey results are reported in CalPADS, including selecting a sample of survey results to verifying that the correct classifications for pupils is being reported prior to the information being uploading in October.

102

Clovis Unified School District Summary Schedule of Prior Audit Findings Year Ended June 30, 2021

Except as specified in previous sections of this report, summarized below is the current status of all audit findings reported in the prior year’s Schedule of Findings and Questioned Costs.

Financial Statement Findings

2020‐001	30000

Internal Control Over Financial Reporting

Criteria

School districts are responsible for maintaining accurate financial statement information including properly recording and reporting all financial transactions and balances.

Condition

We discovered the balance of cash proceeds were not recorded within the District’s general ledger and therefore, not uploaded into their final Unaudited Actuals reporting package as of June 30, 2020. The cash balance and related transaction for the proceeds from the lease agreement related to Certificates of Participation issued by the Central Valley Support Services JPA amounted to $12,528,811.

Effect

The amounts were material and an audit adjustment was necessary both at the fund reporting level as well as additional full accrual conversion entries for the entity wide financial statements.

Cause

These types of adjustments are extremely rare for the District. A few factors contributed to the oversight. The proceeds from this transaction were not expected to be deposited with the fiscal agent until July 2020, not June 30, 2020 at which date they posted to the accounts. Additionally, the COVID‐19 pandemic had the business office almost entirely working in a completely or partially remote environment; that, coupled with additional responsibilities and issues requiring attention regarding COVID‐19 grants and the distance learning coordination and planning we feel led to the oversight.

This finding is not a repeat of or related to a finding in the previous year.

Recommendation

The District should always validate, especially in late fiscal year transactions, the ending June 30, balance of all District related accounts especially those held by fiscal agents as those accounts are typically quite large and active.

103

Clovis Unified School District Summary Schedule of Prior Audit Findings Year Ended June 30, 2021

Current Status

Implemented.

104