December 14, 2023

To the Governing Board Clovis Unified School District Clovis, California

We have audited the financial statements of Clovis Unified School District (the District) as of and for the year ended June 30, 2023, and have issued our report thereon dated December 14, 2023. Professional standards require that we advise you of the following matters relating to our audit.

Our Responsibility in Relation to the Financial Statement Audit under Generally Accepted Auditing Standards and Government Auditing Standards and our Compliance Audit under the Uniform Guidance

As communicated in our letter dated August 1, 2023, our responsibility, as described by professional standards, is to form and express an opinion about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America and to express an opinion on whether the District complied with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of the District’s major federal programs. Our audit of the financial statements and major program compliance does not relieve you or management of its respective responsibilities.

Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing 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 over financial reporting. Accordingly, as part of our audit, we considered the internal control of the District solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.

Our responsibility, as prescribed by professional standards as it relates to the audit of the District’s major federal program compliance, is to express an opinion on the compliance for each of the District’s major federal programs based on our audit of the types of compliance requirements referred to above. An audit of major program compliance includes consideration of internal control over compliance with the types of compliance requirements referred to above as a basis for designing audit procedures that are appropriate in the circumstances 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, as a part of our major program compliance audit, we considered internal control over compliance for these purposes and not to provide any assurance on the effectiveness of the District’s internal control over compliance.

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We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you.

We have provided our comments regarding internal controls during our audit in our 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 dated December 14, 2023. We have also provided our comments regarding compliance with the types of compliance requirements referred to above and internal controls over compliance during our audit in our Independent Auditor’s Report on Compliance with Each Major Federal Program and Report on Internal Control Over Compliance Required by the Uniform Guidance dated December 14, 2023.

Planned Scope and Timing of the Audit

We conducted our audit consistent with the planned scope and timing we previously communicated to you.

Compliance with All Ethics Requirements Regarding Independence

The engagement team, others in our firm, as appropriate, our firm, and other firms utilized in the engagement, if applicable, have complied with all relevant ethical requirements regarding independence.

Qualitative Aspects of the Entity’s Significant Accounting Practices

Significant Accounting Policies

Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the District is included in Note 1 to the financial statements. As described in Notes 1 and 16 to the financial statements, the District changed accounting policies related to accounting for Subscription‐Based Information Technology Arrangements (SBITA) activities to adopt the provisions of GASB Statement No. 96, SBITAs. Accordingly, the accounting change has been retrospectively applied to the financial statements beginning July 1, 2022. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.

Significant Accounting Estimates

Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments.

The most sensitive accounting estimates affecting the financial statements were:

Governmental Accounting Standards Board (GASB) requires the District to calculate, recognize, and report the costs and obligations associated with pensions in their financial statements. These amounts were all based on the District’s proportionate share of the California State Teachers’ Retirement System (CalSTRS) and the California Public Employees’ Retirement System (CalPERS) estimated net pension

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liability, deferred outflows of resources, deferred inflows of resources, and pension expense, which were actuarially determined; utilizing projections of future contributions and future earnings, actuarial assumptions such as inflation, salary increases, mortality rates, and investment rate of return and discount rates in the determination of the final balances reported in the CalSTRS and CalPERS audited financial statements. The District’s proportionate share was determined by calculating the District’s share of contributions to the pension plan relative to the contributions of all participating entities in the plan.

Management’s estimate of the Net OPEB liability, related deferred outflows of resources, deferred inflows of resources, and OPEB expense are based on a calculation of actuarially determined contributions for health insurance benefits.

Financial Statement Disclosures

Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting District’s financial statements relate to Net Other Postemployment Benefits (OPEB) Liability and Plan (Note 9) and the Employee Retirement Systems (Note 12).

Significant Difficulties Encountered during the Audit

We encountered no significant difficulties in dealing with management relating to the performance of the audit.

Uncorrected and Corrected Misstatements

For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole. Uncorrected misstatements or matters underlying those uncorrected misstatements could potentially cause future‐period financial statements to be materially misstated, even though the uncorrected misstatements are immaterial to the financial statements currently under audit.

The following summarizes uncorrected financial statement misstatements whose effects in the current and prior periods, as determined by management, are immaterial, both individually and in the aggregate, to the financial statements taken as a whole.

Governmental Activities: Self‐Insurance Fund
Decrease in accounts payable
Increase in professional consulting claims payments

$338,085
$338,085

The effect of these uncorrected misstatements is an overstatement of net income and fund balance of $338,085, for the Self‐Insurance Fund and an overstatement of income of $338,085 in the entity‐wide statement of activities.

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Disagreements with Management

For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the financial statements or the auditor’s report. No such disagreements arose during the course of the audit.

Circumstances that Affect the Form and Content of the Auditor’s Report

For purposes of this letter, professional standards require that we communicate any circumstances that affect the form and content of our auditor’s report. The following Emphasis of Matter paragraph was added to the Auditor’s Report:

Emphasis of Matter

As discussed in Notes 1 to the financial statements, the District has adopted the provisions of Government Accounting Standards Board (GASB) Statement No. 96, Subscription‐Based Information
Technology Arrangements, for the year ended June 30, 2023. Accordingly, a restatement has been made to the governmental activities as of July 1, 2022. Our opinions are not modified with respect to this matter.

Representations Requested from Management

We have requested certain written representations from management which are included in the management representation letter dated December 14, 2023.

Management’s Consultations with Other Accountants

In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters.

Our responsibility also includes communicating to you any information which we believe is a material misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its manner of presentation, is materially inconsistent with the information, or manner of its presentation, appearing in the financial statements.

This report is intended solely for the information and use of the Governing Board and management of the District and is not intended to be, and should not be, used by anyone other than these specified parties.

Fresno, California

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Financial Statements June 30, 2023
Clovis Unified School District

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Clovis Unified School District Table of Contents
June 30, 2023

Independent Auditor’s Report...................................................................................................................................1 Management’s Discussion and Analysis ....................................................................................................................5 Government‐Wide Financial Statements
Statement of Net Position ...................................................................................................................................17 Statement of Activities.........................................................................................................................................18

Government Fund Financial Statements

Balance Sheet – Governmental Funds.................................................................................................................19 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position............................20 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds ........................22 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities ...................................................................................................................24

Proprietary Fund Financial Statements

Statement of Net Position – Proprietary Funds...................................................................................................26 Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds..............................27 Statement of Cash Flows – Proprietary Funds.....................................................................................................28

Notes to Financial Statements.................................................................................................................................29 Required Supplementary Information
Budgetary Comparison Schedule – General Fund ...............................................................................................75 Schedule of Changes in the District’s Total OPEB Liability and Related Ratios ...................................................76 Schedule of the District’s Proportionate Share of the Net OPEB Liability – MPP Program.................................78 Schedule of the District’s Proportionate Share of the Net Pension Liability.......................................................79 Schedule of the District’s Contributions..............................................................................................................81 Notes to Required Supplementary Information..................................................................................................83

Supplementary Information

Schedule of Expenditures of Federal Awards......................................................................................................85 Local Education Agency Organization Structure..................................................................................................88 Schedule of Average Daily Attendance................................................................................................................89 Schedule of Instructional Time ............................................................................................................................90 Reconciliation of Annual Financial and Budget Report with Audited Financial Statements...............................91 Schedule of Financial Trends and Analysis ..........................................................................................................92 Schedule of Charter Schools ................................................................................................................................93 Combining Balance Sheet – Non‐Major Governmental Funds............................................................................94 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Non‐Major Governmental Funds....................................................................................................................................................................95 Notes to Supplementary Information..................................................................................................................97

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.................................................................................................................................................................99

Clovis Unified School District Table of Contents
June 30, 2023

Independent Auditor’s Report on Compliance for Each Major Federal Program; Report on Internal Control Over Compliance Required by the Uniform Guidance...................................................................................................101

Independent Auditor’s Report on State Compliance.............................................................................................104 Schedule of Findings and Questioned Costs
Summary of Auditor’s Results............................................................................................................................109 Financial Statement Findings.............................................................................................................................111 Federal Awards Findings and Questioned Costs................................................................................................112 State Compliance Findings and Questioned Costs.............................................................................................113 Summary Schedule of Prior Audit Findings........................................................................................................114

Independent Auditor’s Report

To the Governing Board Clovis Unified School District Clovis, California

Report on the Audit of the Financial Statements

Opinions

We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Clovis Unified School District (the District) as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents.

In our opinion, the accompanying 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 the Clovis Unified School District, as of June 30, 2023, 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.

Basis for Opinions

We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States (Government Auditing Standards). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the District, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Adoption of New Accounting Standard

As discussed in Notes 1 and 16 to the financial statements, the District has adopted the provisions of Governmental Accounting Standards Board (GASB) Statement No. 96, Subscription‐Based Information Technology Arrangements, for the year ended June 30, 2023. Accordingly, a restatement has been made to the governmental activities net position and the Charter School Non‐Major Governmental Fund beginning fund balance as of July 1, 2022. Our opinions are not modified with respect to this matter.

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Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:

 Exercise professional judgment and maintain professional skepticism throughout the audit.
 Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, no such opinion is expressed.
 Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control‐related matters that we identified during the audit.

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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 total 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 the District’s contributions, be presented to supplement the basic financial statements. Such information is the responsibility of management and, 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 GAAS, 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.

Supplementary Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the District’s basic financial statements. The Schedule of Expenditures of Federal Awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, combining non‐major governmental fund financial statements, 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 basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the Schedule of Expenditures of Federal Awards, combining non‐ major governmental fund financial statements, and 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 our report dated December 14, 2023 on our consideration of the District’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the District’s internal control over financial reporting or on compliance. That report is an

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integral part of an audit performed in accordance with Government Auditing Standards in considering the District’s internal control over financial reporting and compliance.

Fresno, California December 14, 2023

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Management’s Discussion and Analysis June 30, 2023

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, 2023, with comparative information for the fiscal year ending June 30, 2022.

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 fund 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, 2023

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, 2023

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, 2023

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, 2023

FINANCIAL ANALYSIS OF THE DISTRICT AS A WHOLE

Net Position: The District’s combined net position was $269.8 million on June 30, 2023, increasing by $156.1 million (137.2%) (see Table A‐1).

Table A‐1

Governmental Activities
2022
	2023	       	as Restated	

Assets
Current and other assets Capital assets Right‐to‐use leased assets
Right‐to‐use subscription IT 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)

Total net position

$ 830,215,560 973,988,771 3,872,424
	3,884,199 

 1,811,960,954 

	240,894,095 

72,929,885
 1,552,664,023 

 1,625,593,908 

	157,454,738 

662,599,654 328,542,152
	(721,335,403) 

$ 269,806,403

$ 618,044,891 946,544,747 4,170,303
	1,274,029 

 1,570,033,970 

	200,412,491 

56,034,694
 1,270,437,289 

 1,326,471,983 

	330,237,105 

633,329,939 232,977,156
	(752,569,722)

$ 113,737,373

Changes in Net Position: The District’s total governmental revenues were $851.8 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 $389.9 million and property taxes contributing about $160.4 million. Another $236.6 million came from categorical programs, $16.5 million came from capital grants, and the remainder came from fees charged for services of $6.3 million, and miscellaneous sources of $42.1 million.

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Clovis Unified School District Management’s Discussion and Analysis June 30, 2023

The total cost of all governmental programs and services was $695.8 million (see Table A‐2). The District’s expenses are predominantly related to educating and caring for students (78%). The purely administrative activities of the District accounted for just 5% percent of total costs. Plant services was $70.4 million, accounting for 10% of the District’s expenses. Revenues surpassed expenses, increasing net position by $85.4 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
	2023	       	2022*	

Revenues
Program revenues
Charges for services and sales 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

$      6,290,240 236,619,622 16,490,615

389,921,041 160,399,433
	42,142,741 

	851,863,692 

452,933,869 92,512,899 33,092,581 70,364,793
	46,890,520 

	695,794,662 

$ 23,696,517 146,873,708 10,772,957

332,749,423 139,750,624
	36,210,020 

	690,053,249 

401,404,195 77,790,850 28,951,425 67,568,942
	43,696,199 

	619,411,611 

Change in net position	$ 156,069,030	$ 70,641,638

* The revenues and expenses for fiscal year 2022 were not restated to show the effects of GASB Statement No. 96 for comparative purposes.

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Clovis Unified School District Management’s Discussion and Analysis June 30, 2023

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‐related, 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	
	2023	       	2022*	

	Net Cost of Services	
	2023	       	2022*	

Instruction Pupil services Administration Plant services
All other services

Total

$ 452,933,869 92,512,899 33,092,581 70,364,793
	46,890,520 

$ 695,794,662

$ 401,404,195 77,790,850 28,951,425 67,568,942
	43,696,199 

$ 619,411,611

$ (309,058,915) (20,688,230) (26,925,184) (48,543,172)
	(31,178,684) 

$ (436,394,185)

$ (290,612,433) (47,539,278) (22,737,919) (55,827,021)
	(21,351,778) 

$ (438,068,429)

* The total and net cost of services for fiscal year 2022 were not restated to show the effects of GASB Statement No. 96 for comparative purposes.

	 The net cost of governmental activities this year was $436.4 million as reflected on the Statement of Activities.
	Some of the costs were paid by the users of the District’s programs totaling $6.3 million.
	 The federal and state governments subsidized certain programs with operating grants and contributions totaling $236.6 million.
	 Most of the District’s costs, $389.9 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, 2023

THE DISTRICT’S FUNDS

As the District completed this year, our governmental funds reported a combined fund balance of $689.7 million, which is an increase of $188.3 million from last year (Table A‐4).

Table A‐4

	Balances and Activity	
Revenues and	Expenditures Other Financing            and Other
Governmental Funds	     July 1, 2022	     	Sources	      Financing Uses 	 June 30, 2023 

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

Total

$ 166,043,780 3,478,946 8,021,352 3,278,277 8,274,655 11,396,531 10,771 31,484,714 51,270,698 44,817,318

120,885,349
	52,444,163 

$ 501,406,554

$ 693,839,822 7,047,129 11,776,354 6,483,955 31,663,372 27,799,459 3,763,157 99,938,659 13,519,337 16,617,614

15,712,821
	58,751,196 

$ 986,912,875

$ 616,705,728 7,055,530 7,787,587 6,641,835 22,322,267 20,741,832 2,332,537 32,271,751 15,735,492 4,209,931

11,739,717
	51,047,892 

$ 798,592,099

$ 243,177,874 3,470,545 12,010,119 3,120,397 17,615,760 18,454,158 1,441,391 99,151,622 49,054,543 57,225,001

124,858,453
	60,147,467 

$ 689,727,330

* The beginning fund balance has been restated.

The primary reasons for the changes are:

a.     The fund balance in the General Fund increased $77.1 million to $243.2 million. The net increase is due primarily to additional Federal and State revenue received because of the COVID‐19 pandemic.
b. The special revenue funds reported a net increase of $21.6 million with moderate changes across all funds except the Child Development Fund which had an increase of $9.3 million and the Cafeteria Fund which increased by $7.1 million.
c.	The capital projects funds showed an increase of $81.8 million. This overall increase is due to $16.5 million in State construction funding that was finally received for several past projects and $100 million proceeds from the issuance of General Obligation Bonds.
d. The Bond Interest and Redemption Fund reported an increase of $7.7 million primarily due to the general obligation bond issuance premium and property tax collections in excess of bond principal and interest payments.

12

Clovis Unified School District Management’s Discussion and Analysis June 30, 2023

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 decrease of $6.6 million.
 The Adopted Budget's revenues over expenditures resulted in the District anticipating a surplus of $20.6 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 COLA of 9.85% for the LCFF. The State enacted budget resulted in a 13.26% COLA for LCFF Revenues.
 The Board approved a 7% salary schedule increase subsequent to the adoption of the budget and implemented the results of the salary market study resulting in increased expenditures.
 The District has not returned to pre‐pandemic enrollment numbers, however, did experience slight growth of 35 students.
 Due to the pandemic, districts were held harmless and funded on 2019‐2020 P‐2 ADA for fiscal year 2021 and 2022. Additionally, the State offered a third option for LCFF funding. LCFF is now funded off current year, prior year, or the prior three‐year rolling average whichever is greater.
 During 2022‐23, the District was funded on the prior three‐year rolling average ADA.
 Actual revenues to expenditures resulted in a surplus of $77.3 million, however $2.1 million of the fund balance is non‐spendable, $83.5 million is restricted for restricted programs and $97.3 million is committed for the District’s board approved 10% stabilization policy, textbooks, technology refresh, capital equipment refresh, and site/department long‐term plans.
 District recognized $96.1 million in one‐time revenues from the State and Federal government during the 2022‐23 fiscal year.

CAPITAL ASSETS, RIGHT‐TO‐USE LEASED ASSETS, RIGHT‐TO‐USE SUBSCRIPTION IT ASSETS, AND LONG‐TERM LIABILITIES

Capital Assets, Right‐to‐Use Leased Assets, and Right‐to‐Use Subscription IT Assets

By June 30, 2023, the District had invested $981.7 million in a broad range of capital assets, right‐to‐use leased assets, right‐to‐use subscription IT assets, including school buildings, athletic facilities, computer and audio visual equipment, and administrative offices (see Table A‐5). This amount represents a net increase of
$29.7 million or 3.1% over last year. Total depreciation and amortization expenses for the year was $31.9 million.

13

Clovis Unified School District Management’s Discussion and Analysis June 30, 2023

Table A‐5

Governmental Activities
2022
	2023	       	as Restated	

Land and construction in progress Buildings and improvements Equipment
Right‐to‐use leased assets Right‐to‐use subscription IT assets

Total

$ 197,021,181 747,345,714 29,621,876 3,872,424
	3,884,199 

$ 981,745,394

$ 141,686,748 771,914,126 32,943,873 4,170,303
	1,274,029 

$ 951,989,079

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 school buses, truck, cargo van, ovens, freezer, and a tilting gas kettle.

The District received $16.4 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.

14

Clovis Unified School District Management’s Discussion and Analysis June 30, 2023

Long‐Term Liabilities

At year‐end the District had $1.5 billion in long‐term liabilities outstanding discussed below. This is an increase of 22.2% from last year largely due to an increase in the District’s proportionate share of the net pension liability, as shown in Table A‐6.

Table A‐6

Governmental Activities
2022
	2023	       	as Restated	

Long‐Term Liabilities General obligation bonds
Certificates of participation Unamortized premiums/(discounts) Financed purchase agreements Leases
Subscription‐based IT arrangements Compensated absences
Claims liability Total OPEB liability
Aggregate net pension liability

Total

$      529,529,039 97,750,000 9,706,257 12,605,961 4,210,000 397,836 4,696,521 28,404,358 400,344,828
	465,019,223 

$ 1,552,664,023

$     461,986,499 100,495,000 5,841,076 13,277,508 4,430,000 611,545 3,189,394 27,731,358 369,724,083
	283,150,826 

$ 1,270,437,289

The District’s S&P bond rating as of the most recent bond issuance was “AA” for the 2022 refunding bond issuances. In addition, the District’s certificates of participation S&P rating as of their 2022 issuance was “AA”.

At year‐end, the District has a net pension liability of $465 million versus $283.1 million last year, an increase of $181.9 million, or 64.2%. The District also reported Deferred Outflows (asset) from pension activities of
$139.7 million, and Deferred Inflows (liability) from pension activities of $42.1 million. The net impact on the District’s net position of these pension related items is $(367.4) million.

At year‐end, the District has an other postemployment benefits liability of $400.3 million versus $369.7 million last year, an increase of $30.6 million, or 8.3%. The District also reported Deferred Outflows (asset) from pension activities of $92.9 million, and Deferred Inflows (liability) from pension activities of $115.1 million. The net impact on the District’s net position of these pension related items is $(422.5) million.

15

Clovis Unified School District Management’s Discussion and Analysis June 30, 2023

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 State’s Local Control Funding Formula (LCFF) accounts for about 75% of the District’s General Fund revenues during a normal year. Due to the amount of one‐time revenues received during the 2022‐23 fiscal year, the LCFF accounted for 68%.
 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). The District’s UPP averages 45‐49%, 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.
 The pandemic had a significant impact on average daily attendance. The District experienced an average of a 96.3% attendance rate pre‐pandemic; 2022‐23 ended with a rate of 94.1%.
 Enrollment growth and student attendance are 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 during the pandemic 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% 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.

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.

16

Clovis Unified School District Statement of Net Position
June 30, 2023

Assets
Deposits and investments Receivables
Prepaid expense Stores inventories
Capital assets not depreciated
Capital assets, net of accumulated depreciation Right‐to‐use leased assets, net of accumulated amortization
Right‐to‐use subscription IT assets, net of accumulated amortization

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
Accounts payable Unearned revenue 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 OPEB 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 Self insured programs Child nutrition Student activities
Unrestricted (deficit)

Governmental
	Activities	

$ 779,978,307 47,438,897 891,650 1,906,706 197,021,181 776,967,590 3,872,424
	3,884,199 

	1,811,960,954 

8,275,175 92,951,429
	139,667,491 

	240,894,095 

56,804,680 16,125,205

45,945,141 641,354,831 400,344,828
	465,019,223 

	1,625,593,908 

188,489 115,121,091
	42,145,158 

	157,454,738 

662,599,654

60,147,467 106,279,544 101,415,665 39,153,987 18,074,944 3,470,545
	(721,335,403) 

Total net position

See Notes to Financial Statements

$ 269,806,403

17

Clovis Unified School District Statement of Activities
Year Ended June 30, 2023

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	$ 363,324,919	$	8,819	$ 94,529,629	$16,490,615	$ (252,295,856) Instruction‐related activities
Supervision of instruction	36,242,113	‐	23,039,695	‐	(13,202,418) Instructional library, media,
and technology                                  15,416,741                              ‐              8,495,910                             ‐                (6,920,831) School site administration                     37,950,096                              ‐              1,310,286                             ‐              (36,639,810)
Pupil services
Home‐to‐school transportation           14,777,291                              ‐                      3,028                             ‐              (14,774,263) Food services                                            19,816,515                   18,162            26,504,202                             ‐                 6,705,849 All other pupil services                           57,919,093                     7,620            45,291,657                             ‐              (12,619,816)
Administration
Data processing                                          7,838,811                              ‐              2,225,615                             ‐                (5,613,196) All other administration                         25,253,770                        507              3,941,275                             ‐              (21,311,988)
Plant services	70,364,793	1,994,239	19,827,382	‐	(48,543,172) Ancillary services	20,420,904                              ‐              7,077,738	‐	(13,343,166) Community services                                            701,192                              ‐                               ‐	‐                   (701,192) Enterprise services                                                   2,599                              ‐                               ‐	‐                        (2,599) Interest on long‐term liabilities	24,195,128                              ‐                               ‐	‐	(24,195,128)
Other outgo	           1,570,697  	4,260,893  	4,373,205  	‐  	7,063,401 

Total governmental
activities	 $ 695,794,662   $ 6,290,240   $236,619,622   $16,490,615  	(436,394,185) 

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
Miscellaneous and unspent State entitlements revenues

Subtotal, general revenues and subventions

Change in Net Position

Net Position ‐ Beginning, as Restated

Net Position ‐ Ending

See Notes to Financial Statements

106,426,536 53,396,995 575,902 389,921,041
(4,227,978) 1,377,702
	44,993,017 

	592,463,215 

156,069,030

	113,737,373 

 $ 269,806,403 

18

Clovis Unified School District Balance Sheet – Governmental Funds June 30, 2023

Assets
Deposits and investments Receivables
Due from other funds Prepaid expenditures Stores inventories

General
	Fund	

$ 273,155,109 36,753,849
‐ 380,000
	1,458,342 

Building
	Fund	

$ 98,838,026 ‐
575,902 ‐
	‐ 

Special Reserve Fund for Capital
 Outlay Projects 

$ 121,027,226 ‐
4,452,232 ‐
	‐ 

Non‐Major Governmental
	Funds	

$ 218,205,110 8,682,983 1,867,079 511,650
	448,364 

Total Governmental
	Funds	

$ 711,225,471 45,436,832 6,895,213 891,650
	1,906,706 

Total assets	$ 311,747,300	$ 99,413,928	$ 125,479,458	$ 229,715,186	$ 766,355,872

Liabilities and Fund Balances

Liabilities
Accounts payable Due to other funds Unearned revenue

Total liabilities

Fund Balances Nonspendable Restricted Committed Assigned Unassigned

Total fund balances

$ 50,657,348 1,811,873
	16,100,205 

	68,569,426 

1,982,342 84,440,642 97,287,153 ‐
	59,467,737 

	243,177,874 

$          262,306 ‐
	‐ 

	262,306 

‐ 99,151,622 ‐
‐
	‐ 

	99,151,622 

$          621,005 ‐
	‐ 

	621,005 

‐ 124,858,453 ‐
‐
	‐ 

	124,858,453 

$      3,557,136 3,593,669
	25,000 

	7,175,805 

963,514 204,947,523 4,485,918 12,142,426
	‐ 

	222,539,381 

$ 55,097,795 5,405,542
	16,125,205 

	76,628,542 

2,945,856 513,398,240 101,773,071 12,142,426
	59,467,737 

	689,727,330 

Total liabilities and fund balances	$ 311,747,300	$ 99,413,928	$ 125,479,458	$ 229,715,186	$ 766,355,872

See Notes to Financial Statements	19

Clovis Unified School District Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position
June 30, 2023

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

Right‐to‐use leased assets used in governmental activities are
not financial resources and, therefore, are not reported as assets in governmental funds.
The cost of right‐to‐use leased assets is Accumulated amortization is

Net right‐to‐use leased assets

Right‐to‐use subscription IT assets used in governmental activities are not financial resources and, therefore, are not reported as assets in governmental funds.
The cost of right‐to‐use subscription IT assets is Accumulated amortization is

Net right‐to‐use subscription IT assets

An internal service fund is used by management to charge the costs of the workers’ compensation insurance program to the individual funds. The assets and liabilities of the internal service fund are
included with governmental activities in the statement of net position.

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 ou lows of resources to pensions

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) Other postemployment benefits (OPEB)
Net pension liability

Total deferred inﬂows of resources to pensions

1,485,971,317
	(511,982,546)

4,915,000
	(1,042,576)

5,922,458
	(2,038,259)

8,275,175 92,951,429
	139,667,491 

(188,489) (115,121,091)
	(42,145,158)

$ 689,727,330

973,988,771

3,872,424

3,884,199

39,153,987

240,894,095

(157,454,738)

See Notes to Financial Statements	20

Clovis Unified School District Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position
June 30, 2023

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

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

(465,019,223)

(400,344,828)

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 Financed purchase agreements Leases
Subscription‐based IT arrangements 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

(426,572,447) (97,750,000) (12,605,961) (4,210,000) (397,836) (4,696,521) (9,706,257)

	(102,956,592)

	(658,895,614)

Total net position ‐ governmental activities

See Notes to Financial Statements

$ 269,806,403

21

Clovis Unified School District Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds
Year Ended June 30, 2023

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
Interest and other

Total expenditures

See Notes to Financial Statements

General
	Fund	

$ 469,055,149 46,258,118 157,473,196
	16,676,990 

	689,463,453 

341,742,906

32,944,250

15,215,340 34,001,142

14,884,716 87,336 53,491,189

7,774,717 20,976,415 62,061,892 10,490,965 1,570,697 6,038,414

4,676,819
	26,986 

	605,983,784 

Building
	Fund	

$	 ‐ ‐ ‐
	(1,478,116) 

	(1,478,116) 

‐

‐

‐ ‐

‐ ‐ ‐

‐ ‐
520,742 ‐ ‐
31,330,161

329,999
	88,043 

	32,268,945 

Special Reserve Fund for Capital
 Outlay Projects 

$	 ‐ ‐ ‐
	6,168,145 

	6,168,145 

‐

‐

‐ ‐

‐ ‐ ‐

‐ ‐
2,387,424 ‐ ‐
9,346,543

‐
	5,750 

	11,739,717 

Non‐Major Governmental
	Funds	

$ 10,052,210 15,580,538 61,307,374
	81,242,067 

	168,182,189 

24,866,752

4,262,718

143,597 2,679,419

‐ 19,807,928 1,495,597

‐ 1,859,625 3,706,949 7,055,530 ‐ 9,818,165

44,187,001
	12,775,235 

	132,658,516 

Total Governmental
	Funds	

$ 479,107,359 61,838,656 218,780,570
	102,609,086 

	862,335,671 

366,609,658

37,206,968

15,358,937 36,680,561

14,884,716 19,895,264 54,986,786

7,774,717 22,836,040 68,677,007 17,546,495 1,570,697 56,533,283

49,193,819
	12,896,014 

	782,650,962 

22

Clovis Unified School District Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds
Year Ended June 30, 2023

Excess (Deficiency) of Revenues Over Expenditures

Other Financing Sources (Uses) Transfers in
Proceeds from sale of general obligation bonds
Proceeds from subscription‐based IT arrangements Premium on bond issuance
Transfers out

Net Financing Sources (Uses) Net Change in Fund Balances
Fund Balance ‐ Beginning as Restated

General
	Fund	

	83,479,669 

332,806

‐ 4,043,563 ‐
	(10,721,944)

	 (6,345,575) 77,134,094
	166,043,780 

Building
	Fund	

	(33,747,061) 

1,416,775

100,000,000 ‐ ‐
	(2,806) 

	101,413,969 

67,666,908

	31,484,714 

Special Reserve Fund for Capital
 Outlay Projects 

	(5,571,572) 

9,544,676

‐ ‐ ‐
	‐ 

	9,544,676 

3,973,104

	120,885,349 

Non‐Major Governmental
	Funds	

	35,523,673 

4,646,880

‐ ‐
4,592,504
	(5,216,387) 

	4,022,997 

39,546,670

	182,992,711 

Total Governmental
	Funds	

	79,684,709 

15,941,137

100,000,000 4,043,563 4,592,504
	(15,941,137)

	108,636,067 

188,320,776

	501,406,554 

Fund Balance ‐ Ending	$ 243,177,874	$ 99,151,622	$ 124,858,453	$ 222,539,381	$ 689,727,330

See Notes to Financial Statements	23

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, 2023

Total Net Change in Fund Balances ‐ Governmental Funds	$ 188,320,776

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
and amortization expenses in the Statement of Activities.

This is the amount by which capital outlays exceed depreciation and amortization expenses in the period.
Depreciation and amortization expenses Capital outlays

Net expense adjustment

$ (31,862,558)
	61,618,873 

29,756,315

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

Right‐to‐use subscription IT assets acquired this year were financed with Subscription‐Based IT Arrangements (SBITAs). The amount financed by the SBITAs is reported in the governmental funds as a source of financing. On the other hand, the SBITAs are not revenues in the Statement of Activities, but rather constitute long‐term liabilities in the Statement of Net Position.

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.

See Notes to Financial Statements

(8,842,540)

(4,043,563)

(1,507,127)

21,489,584

(17,750,858)

24

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, 2023

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.

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 Financed purchase agreements Leases
Subscription‐based IT arrangements

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.

(100,000,000)

(4,592,504) 789,021
(61,698) (2,963,897)

41,300,000 2,745,000 671,547 220,000 4,257,272

	6,281,702 

Change in net position of governmental activities	$ 156,069,030

See Notes to Financial Statements	25

Clovis Unified School District Statement of Net Position – Proprietary Funds June 30, 2023

Internal
	Service	
Self Insurance
	Fund	

Assets
Current assets
Deposits and investments Receivables
Due from other funds

Total assets

Liabilities
Current liabilities Accounts payable Due to other funds

Total current liabilities

Noncurrent liabilities Claims liabilities

Total liabilities

Net Position
Restricted for claims

$ 68,752,836 2,002,065
	7,627 

	70,762,528 

1,706,885
	1,497,298 

	3,204,183 

	28,404,358 

	31,608,541 

	39,153,987 

Total net position	$ 39,153,987

See Notes to Financial Statements	26

Clovis Unified School District Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds
Year Ended June 30, 2023

Internal
	Service	
Self Insurance
	Fund	

Operating Revenues Charges for services

Operating Expenses Payroll costs
Supplies and materials
Claim payments and adjustments

Total operating expenses

Operating Income

Nonoperating Revenues Fair value losses Interest income

Total nonoperating revenues

Change in Net Position

Total Net Position ‐ Beginning

 $ 87,430,983 

305,741 836,830
	79,700,527 

	80,843,098 

	6,587,885 

(616,128)
	309,945 

	(306,183) 

6,281,702

	32,872,285 

Total Net Position ‐ Ending	$ 39,153,987

See Notes to Financial Statements	27

Clovis Unified School District Statement of Cash Flows – Proprietary Funds Year Ended June 30, 2023

Internal
	Service	
Self Insurance
	Fund	

Operating Activities
Cash receipts from customers
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 Fair value losses

Investing Activities
Interest on investments

Net Change in Cash and Cash Equivalents

Cash and Cash Equivalents, Beginning

$          4,417,232 83,121,248
(836,830) (1,575,672)
	(78,815,521) 

	6,310,457 

	(616,128) 

	309,945 

6,004,274

	62,748,562 

Cash and Cash Equivalents, Ending	$	68,752,836

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

$	6,587,885

45,451 62,046
(2,476,306) 1,418,381
	673,000 

Net Cash From Operating Activities	$	6,310,457

See Notes to Financial Statements	28

Clovis Unified School District Notes to Financial Statements
June 30, 2023

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‐four 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. The District has also 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 $1,139,231.

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.

29

Clovis Unified School District Notes to Financial Statements
June 30, 2023

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).

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).

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).

 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).

30

Clovis Unified School District Notes to Financial Statements
June 30, 2023

 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.).

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.

 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).

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.

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 and amortization of leased assets and subscription IT assets. 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.

31

Clovis Unified School District Notes to Financial Statements
June 30, 2023

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 governmental 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.

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.

32

Clovis Unified School District Notes to Financial Statements
June 30, 2023

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 expenses, are not recognized in the governmental funds but are recognized in the government‐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.

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.

33

Clovis Unified School District Notes to Financial Statements
June 30, 2023

Capital Assets, Depreciation, and Amortization

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.

The District records impairments of capital assets when it becomes probable that the carrying value of the assets will not be fully recovered over their estimated useful life. Impairments are recorded to reduce the carrying value of the assets to their net realizable value based on facts and circumstances in existence at the time of the determination. No impairments were recorded during the year ended June 30, 2023.

The District records the value of intangible right‐to‐use assets based on the underlying leased asset in accordance with GASB Statement No. 87, Leases. The right‐to‐use intangible asset is amortized each year for the term of the contract or useful life of the underlying asset.

The District records the value of right‐to‐use subscription IT assets based on the underlying subscription asset in accordance with GASB Statement No. 96, Subscription‐Based Information Technology Arrangements. The right‐ to‐use subscription IT asset is amortized each year for the term of the contract or useful life of the underlying asset.

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.

34

Clovis Unified School District Notes to Financial Statements
June 30, 2023

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.

Accrued Liabilities and Long‐Term Liabilities

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

However, compensated absences, bonds, leases, and other long‐term liabilities are recognized as liabilities in the entity‐wide fund financial statement when due.

Deferred Outflows of Resources and Deferred 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.

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, for pension related items, and for OPEB 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.

35

Clovis Unified School District Notes to Financial Statements
June 30, 2023

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 District Plan and the CalSTRS Medicare Premium Payment (MPP) Program and additions to/deductions from the District Plan and the MPP’s fiduciary net position have been determined on the same basis as they are reported by the District Plan and the MPP. For this purpose, the District Plan and 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 General Fund.

Leases

The District recognizes a lease liability and an intangible right‐to‐use lease asset (lease asset) in the government‐ wide financial statements. At the commencement of the lease term, the District measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight‐line basis over the lease term or useful life of the underlying asset.

Subscriptions

The District recognizes a subscription liability and an intangible right‐to‐use subscription IT asset (subscription IT asset) in the government‐wide financial statements. At the commencement of the subscription term, the District measures the subscription liability at the present value of payments expected to be made during the subscription term. Subsequently, the subscription liability is reduced by the principal portion of subscription payments made. The subscription IT asset is initially measured as the initial amount of the subscription liability, plus certain initial direct costs. Subsequently, the subscription IT asset is amortized on a straight‐line basis over the subscription term or useful life of the underlying asset. The amortization period varies from two to eight years.

Fund Balances ‐ Governmental Funds

As of June 30, 2023, 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.

36

Clovis Unified School District Notes to Financial Statements
June 30, 2023

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 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 $328,542,152 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.

37

Clovis Unified School District Notes to Financial Statements
June 30, 2023

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. 96

As of July 1, 2022, the District adopted GASB Statement No. 96, Subscription‐Based Information Technology Arrangements (SBITAs). The implementation of this standard establishes that a SBITA results in a right‐to‐use subscription IT asset ‐ an intangible asset ‐ and a corresponding liability. The standard provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA. The Statement requires recognition of certain SBITA assets and liabilities for SBITAs that previously were recognized as outflows of resources based on the payment provisions of the contract. The effect of the implementation of this standard on beginning net position and fund balance is disclosed in Note 16 and the additional disclosures required by this standard are included in Notes 4 and 8.

38

Clovis Unified School District Notes to Financial Statements
June 30, 2023

Note 2 ‐	Deposits and Investments

Summary of Deposits and Investments

Deposits and investments as of June 30, 2023, are classified in the accompanying financial statements as follows:

Governmental funds Proprietary funds

Total deposits and investments

$ 711,225,471
	68,752,836 

$ 779,978,307

Deposits and investments as of June 30, 2023, consist of the following:

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

Total deposits and investments

$ 19,096,296 118,544,658 147,500
	642,189,853 

$ 779,978,307

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.

39

Clovis Unified School District Notes to Financial Statements
June 30, 2023

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

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 $642,189,853 in the Fresno County Treasury Investment Pool that has an average weighted maturity of 862 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.

40

Clovis Unified School District Notes to Financial Statements
June 30, 2023

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% 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% of the secured public deposits and letters of credit issued by the Federal Home Loan Bank of San Francisco having a value of 105% of the secured deposits. As of June 30, 2023, $137,119,881 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.

Note 3 ‐	Receivables

Receivables at June 30, 2023, 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	$ 14,340,793	$	3,080,082	$ 17,420,875	$	‐	$ 17,420,875 State Government
LCFF apportionment	3,504	‐	3,504	‐	3,504 State grants and
entitlements	14,986,269	5,228,404	20,214,673	‐	20,214,673
Local Sources	          7,423,283  	374,497  	7,797,780  	2,002,065  	9,799,845 

Total	$ 36,753,849	$	8,682,983	$ 45,436,832	$	2,002,065	$ 47,438,897

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Clovis Unified School District Notes to Financial Statements
June 30, 2023

Note 4 ‐	Capital Assets, Right‐to‐Use Leased Assets, and Right‐to‐Use Subscription IT Assets

Capital assets, right‐to‐use leased assets, and right‐to‐use subscription IT assets activity for the fiscal year ended June 30, 2023, was as follows:

Balance
July 1, 2022	Balance
	as Restated	 	Additions	 	Deductions	      June 30, 2023 

Governmental Activities
Capital assets not being depreciated Land
Construction in progress

$ 103,444,421 38,242,327

$                       ‐ 56,681,453

$		‐ (1,347,020)

$ 103,444,421 93,576,760

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

Net depreciable capital assets

	141,686,748  	56,681,453  	(1,347,020)  	197,021,181 

130,224,678                  710,153                                ‐             130,934,831 1,073,606,102                  690,662                                ‐         1,074,296,764
	82,878,479  	840,062  	‐  	83,718,541 

	1,286,709,259  	2,240,877  	‐  	1,288,950,136 

	1,428,396,007  	58,922,330  	(1,347,020)  	1,485,971,317 

(95,364,745)            (3,457,770)                               ‐              (98,822,515) (336,551,909)          (22,511,457)                               ‐           (359,063,366)
	(49,934,606)  	(4,162,059)  	‐  	(54,096,665) 

	(481,851,260)  	(30,131,286)  	‐  	(511,982,546) 

	804,857,999  	(27,890,409)  	‐  	776,967,590 

Right‐to‐use leased assets being amortized
Buildings and improvements	             4,915,000  	‐  	‐  	4,915,000 

Accumulated amortization
Buildings and improvements	               (744,697)  	(297,879)  	‐  	(1,042,576) 

Net right‐to‐use leased assets	4,170,303	(297,879)	‐	3,872,424

Right‐to‐use subscription IT assets being amortized
Right‐to‐use subscription IT assets	1,878,895	4,043,563	‐	5,922,458
Accumulated amortization	               (604,866)  	(1,433,393)  	‐  	(2,038,259) 

Net right‐to‐use subscription IT assets	             1,274,029  	2,610,170  	‐  	3,884,199 

Governmental activities capital assets, right‐to‐use
leased assets, and right‐to‐use
subscription IT assets, net	$ 951,989,079	$ 31,103,335	$	(1,347,020)	$ 981,745,394

42

Clovis Unified School District Notes to Financial Statements
June 30, 2023

Depreciation and amortization expenses were charged as a direct expense to governmental functions as follows:

Governmental Activities Instruction
Supervision of instruction School site administration Food services
All other pupil services Ancillary services Community services Data processing
All other administration Plant services

$ 18,943,340 125,837 2,006,805 297,879 2,960,062 2,929,912 701,192 166,185 2,191,551
	1,539,795 

Total depreciation and amortization expenses ‐ governmental activities	$ 31,862,558

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, 2023, between major and non‐major governmental funds, and internal service fund are as follows:

	Funds	

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

Due from
	Other Funds 

$                       ‐ 575,902

4,452,232

100,000 1,767,079 ‐
‐ ‐ ‐
	7,627 

Due to
	Other Funds 

$      1,811,873 ‐

‐

193,387 ‐ 121,157
2,762,621 352,361 164,143
	1,497,298 

Total	$	6,902,840	$	6,902,840

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.

43

Clovis Unified School District Notes to Financial Statements
June 30, 2023

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, 2023, 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
for construction project costs.
The General Fund transferred to the Special Reserve Fund for Capital Outlay Projects for the COPs debt service payment.
The General Fund transferred to the Special Reserve Fund for Capital Outlay Projects for a one‐time furniture refresh.
The General Fund transferred to the Special Reserve Fund for Capital Outlay Projects for future repairs and maintenance costs.
The General Fund transferred to the Special Reserve Fund for Capital Outlay Projects for mandated safety standards costs.
The General Fund transferred to the Adult Education Non‐Major Governmental Fund for the District’s Adult Education contribution.
The Building Fund transferred to the General Fund for electric cart expenditure overages. The Capital Facilities Non‐Major Governmental Fund transferred to the General Fund
for indirect costs.
The Capital Facilities Non‐Major Governmental Fund transferred to the Building Fund as a contribution towards construction project costs.
The County School Facilities Non‐Major Governmental Fund transferred to the Special Reserve Fund for Capital Outlay Projects for capital project costs.

Total

$       3,800,000 416,775

3,338,089

470,200

200,000

900,000

750,000

846,880 2,806

330,000

1,000,000

	3,886,387 

 $ 15,941,137 

44

Clovis Unified School District Notes to Financial Statements
June 30, 2023

Note 6 ‐	Accounts Payable

Accounts payable at June 30, 2023, consisted of the following:

Special Reserve	Non‐Major	Total	Internal	Total General	Building	Fund for Capital      Governmental      Governmental           Service           Governmental
	Fund	 	Fund	  Outlay Projects  	Funds	 	Funds	 	Fund	 	Activities	

Vendor payables	$37,418,230	$ 262,306	$	621,005	$	3,430,904	$ 41,732,445	$ 1,706,885	$ 43,439,330 LCFF appor onment                  2,006,000                        ‐                                ‐                                ‐              2,006,000                            ‐               2,006,000 Learning recovery
emergency block
grant apportionment          6,625,006                        ‐                                ‐                   126,232              6,751,238                            ‐               6,751,238 Salaries and benefits                 3,484,824                        ‐                                ‐                                ‐              3,484,824                            ‐               3,484,824
Other	        1,123,288  	‐  	‐  	‐  	1,123,288  	‐  	1,123,288 

Total	$50,657,348	$ 262,306	$	621,005	$	3,557,136	$ 55,097,795	$ 1,706,885	$ 56,804,680

Note 7 ‐	Unearned Revenue

Unearned revenue at June 30, 2023, consists of the following:

General
	Fund	

Non‐Major Governmental
	Funds	       	Total	

Federal financial assistance State categorical aid

$ 10,726,374	$	‐
	5,373,831 	                25,000 

$ 10,726,374
	5,398,831 

Total	$ 16,100,205	$	25,000	$ 16,125,205

45

Clovis Unified School District Notes to Financial Statements
June 30, 2023

Note 8 ‐	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, 2022 as Restated

Long‐Term Liabilities
General obligation bonds	$ 461,986,499 Certificates of participation          100,495,000 Unamortized debt premiums            7,563,223 Unamortized debt discounts            (1,722,147) Financed purchase
agreements	13,277,508 Leases                                                     4,430,000 Subscription‐based IT
arrangements	611,545 Compensated absences                      3,189,394 Claims liability                                     27,731,358

Additions

$ 108,842,540 ‐
4,592,504 ‐

‐ ‐

4,043,563 1,507,127 673,000

Deductions

$ (41,300,000) (2,745,000) (789,021)
61,698

(671,547) (220,000)

(4,257,272) ‐ ‐

Balance June 30, 2023

$ 529,529,039 97,750,000 11,366,706
(1,660,449)

12,605,961 4,210,000

397,836 4,696,521 28,404,358

Due in One Year

$ 40,700,000 2,775,000
‐ ‐

1,913,490 225,000

331,651 ‐ ‐

Total	$ 617,562,380	$ 119,658,734	$ (49,921,142)	$ 687,299,972	$ 45,945,141

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 the Capital Facilities Fund. The premiums and discounts will be amortized over the life of the related debt. Payments on the financed purchase agreements, leases, and child development portables are made from General Fund, Building Fund, and Child Development Fund. Payments on the subscription‐based IT arrangements are made from the General Fund and the Charter School Fund. Payments on compensated absences are made from the fund which the related employee worked. The District is self‐insured for the claims liability which is funded through the District’s Self Insurance Fund.

46

Clovis Unified School District Notes to Financial Statements
June 30, 2023

General Obligation Bonds

The outstanding general obligation bonded debt is as follows:

Fiscal Year Issued

Fiscal Year of Final
Series	Maturity

Interest Rate

Original Issue

Bonds Outstanding
July 1, 2022	Issued

Interest Accreted

Bonds Outstanding
Redeemed	June 30, 2023

Due in One Year

2003	01B	2028 Accreted interest on bonds
2005	04A	2030 Accreted interest on bonds
2006	04B	2031 Accreted interest on bonds
2013               12A              2038 2014               12B              2024
Accreted interest on bonds 2015	12C	2035
Accreted interest on bonds 2016	12D	2041 2017	17R	2036
Accreted interest on bonds 2020	19R	2038 2021	20A	2046 2022	21R	2040 2022	22R	2032 2023	20B	2048

3.6‐5.23%       $ 29,000,256       $      9,114,038       $                       ‐       $                    ‐       $      (1,117,405)      $      7,996,633       $ 2,190,781 16,010,962                                ‐           1,166,671               (1,907,595)           15,270,038            1,164,219
3.8‐6.15%         119,998,286            43,200,940                                ‐                            ‐               (5,708,333)           37,492,607            5,689,858 67,501,318                                ‐           5,349,754               (8,256,667)           64,594,405            9,115,142
4.0‐5.0%            48,001,060            13,847,060                                ‐                            ‐                                  ‐            13,847,060                              ‐ 16,277,367                                ‐           1,459,005                                  ‐            17,736,372                              ‐
1.0‐5.5%            79,996,801              3,515,000                                ‐                            ‐               (3,515,000)                               ‐                              ‐ 2.0‐6.12%           49,996,579              1,378,507                                ‐                            ‐                  (668,472)                 710,035                710,035 931,185                                ‐                 70,308                  (451,528)                 549,965                549,965
3.19‐4.52%          64,995,505            12,489,435                                ‐                            ‐               (1,305,000)           11,184,435            1,135,146 1,119,529                                ‐              128,856                                  ‐              1,248,385                369,854
3.37‐5.0%         103,007,034            37,365,000                                ‐                            ‐               (1,325,000)           36,040,000            1,590,000 3.18‐5.0%           43,121,677            38,816,677                                ‐                            ‐                                  ‐            38,816,677                              ‐ 2,889,481                                ‐              667,946                                  ‐              3,557,427                              ‐
1.786‐3.257%       23,630,000            18,195,000                                ‐                            ‐                  (165,000)           18,030,000                170,000 2.0‐4.0%            50,000,000            50,000,000                                ‐                            ‐            (10,810,000)           39,190,000                              ‐ 0.286‐3.067%     125,145,000          125,145,000                                ‐                            ‐               (6,070,000)        119,075,000                              ‐ 5.00%                 4,190,000              4,190,000                                ‐                            ‐                                  ‐              4,190,000                              ‐
5.00%	100,000,000     	‐        100,000,000  	‐  	‐       100,000,000        18,015,000 

Total	$461,986,499	$100,000,000	$ 8,842,540	$ (41,300,000)      $529,529,039	$40,700,000

Debt Service Requirements to Maturity

The capital appreciation bonds mature as follows:

Bonds Maturing
	Fiscal Year	

2024 2025 2026 2027 2028
2029‐2033 2034‐2036

Initial
	Bond Value	

$      8,699,258 8,052,673 8,064,656 8,544,039 10,078,363 24,301,952
	11,686,506 

Accreted
	Interest	

$ 12,225,742 11,770,051 11,897,176 13,859,965 17,201,484 33,312,452
	2,689,722 

Accreted
	Obligation	

$ 20,925,000 19,822,724 19,961,832 22,404,004 27,279,847 57,614,404
	14,376,228 

Unaccreted
	Interest	

$                       ‐ 1,057,276 2,128,168 3,755,996 6,295,153 21,100,596
	6,943,772 

Maturity
	Value	

$ 20,925,000 20,880,000 22,090,000 26,160,000 33,575,000 78,715,000
	21,320,000 

Total	$ 79,427,447	$ 102,956,592	$ 182,384,039	$ 41,280,961	$ 223,665,000

47

Clovis Unified School District Notes to Financial Statements
June 30, 2023

The current interest bonds mature as follows:

	Fiscal Year	

2024 2025 2026 2027 2028
2029‐2033 2034‐2038 2039‐2043 2044‐2046

Total

	Principal	

$ 19,775,000 16,305,000 1,585,000 5,005,000 185,000 57,440,000 80,165,000 119,045,000
	47,640,000 

$ 347,145,000

Interest to
	Maturity	

$ 12,467,367 11,570,422 11,128,118 11,006,373 10,919,382 50,679,035 38,562,222 18,734,207
	5,340,487 

$ 170,407,613

	Total	

$ 32,242,367 27,875,422 12,713,118 16,011,373 11,104,382 108,119,035 118,727,222 137,779,207
	52,980,487 

$ 517,552,613

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%. As of June 30, 2023, the principal balance outstanding was $1,345,000.

2021 Certificates of Participation

In October 2011, the Central Valley Support Services JPA issued 2021 Certificates of Participation and entered into a lease agreement to fund the debt with the District in the amount of $102,535,000 with interest rates ranging from 0.435% to 3.100%. As of June 30, 2023, the principal balance outstanding was $96,405,000.

Debt Service Requirements to Maturity

Year Ending
	June 30,	

2024 2025 2026 2027 2028
2029‐2033 2034‐2038 2039‐2043 2044‐2048 2049‐2051

	Principal	

$      2,775,000 2,950,000 2,980,000 2,520,000 2,565,000 13,695,000 15,660,000 18,315,000 21,525,000
	14,765,000 

	Interest	

$      2,911,497 2,864,866 2,803,261 2,751,061 2,705,147 12,658,083 10,692,267 8,040,578 4,825,442
	1,040,732 

	Total	

$      5,686,497 5,814,866 5,783,261 5,271,061 5,270,147 26,353,083 26,352,267 26,355,578 26,350,442
	15,805,732 

Total	$ 97,750,000	$ 51,292,934	$ 149,042,934

48

Clovis Unified School District Notes to Financial Statements
June 30, 2023

Financed Purchase Agreements

The District has entered into agreements to lease various facilities and equipment. 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. The financed purchase agreements have minimum payments as follows:

Year Ending June 30,

2024 2025 2026 2027 2028
2029‐2030

	Principal	

$	 1,913,490 1,972,471 1,610,000 1,675,000 1,740,000
	3,695,000 

Interest to
	Maturity	

$	 478,199 414,618 348,800 284,400 217,400
	223,200 

	Total	

$	 2,391,689 2,387,089 1,958,800 1,959,400 1,957,400
	3,918,200 

Total	$ 12,605,961	$	1,966,617	$ 14,572,578

Leases

The District has entered into an agreement to lease the building located at 310 N. Sunnyside, Clovis, CA for their Campus Catering (food services) department. The lease began June 1, 2020, and ends June 1, 2036, and under the terms of the lease the District will make semi‐annual payments ranging from $8,000 ‐ $448,800 (principal portion increasing and interest portion decreasing over the life of the lease). The annual interest rate charged to the lease is 4.0%. At June 30, 2023, the District has recognized right‐to‐use asset, net of amortization of $3,872,424 and a total lease liability of $4,210,000 related to the lease agreement. During the fiscal year, the District recorded $297,879 in amortization expenses and $220,000 in principal and $177,200 in interest payments for the right‐to‐use the building. The District also pays for the maintenance and upkeep of the building, which is not included in the measurement of the lease liability as they are variable in nature. The District’s liability on the lease is summarized below:

Leases Outstanding
	Lease	       	July 1, 2022	       	Addition	

Leases Outstanding
	Payments	        June 30, 2023 

Campus Catering	$	4,430,000	$	‐	$	(220,000)	$	4,210,000

49

Clovis Unified School District Notes to Financial Statements
June 30, 2023

The remaining principal and interest payment requirements for the lease obligation debt as of June 30, 2023, are as follows:

Year Ending June 30,

2024 2025 2026 2027 2028
2029‐2033 2034‐2036

	Principal	

$          225,000 240,000 265,000 275,000 285,000 1,685,000
	1,235,000 

	Interest	

$	168,400 159,400 149,800 139,200 128,200 456,400
	101,000 

	Total	

$          393,400 399,400 414,800 414,200 413,200 2,141,400
	1,336,000 

Total	$	4,210,000	$	1,302,400	$	5,512,400

Subscriptions‐Based Information Technology Arrangements (SBITAs)

The District entered into SBITAs for the general operations of the District. At June 30, 2023, the District recognized a right‐to‐use subscriptions IT asset of $5,922,458 and a SBITA liability of $397,836 related to these agreements. During the fiscal year, the District recorded $1,433,393 in amortization expense and $15,043 in interest expense. The subscription has an interest rate of 4.08%.

The remaining principal and interest payment requirements for the SBITA obligation debt as of June 30, 2023, are as follows:

Year Ending
	June 30,	

2024 2025 2026 2027

	Principal	

$	331,651 21,164 22,052
	22,969 

	Interest	

$	 2,987 1,931 1,017
	64 

	Total	

$	334,638 23,095 23,069
	23,033 

Total	$	397,836	$	5,999	$	403,835

Compensated Absences

Compensated absences (unpaid employee vacation) for the District at June 30, 2023, amounted to $4,696,521.

50

Clovis Unified School District Notes to Financial Statements
June 30, 2023

Note 9 ‐	Net Other Postemployment Benefit (OPEB) Liability

For the fiscal year ended June 30, 2023, the District reported net OPEB liability, deferred outflows of resources, deferred inflows of resources, and OPEB expense for the following plans:

	OPEB Plan	

District Plan
Medicare Premium Payment (MPP) Program

Net OPEB
	Liability	

$ 398,479,811

	1,865,017 

Deferred Outflows
	of Resources	

$	92,951,429

	‐ 

Deferred Inflows
	of Resources	

$	115,121,091

	‐ 

OPEB
	Expense	

$ 25,724,528

	(349,625)

Total	$ 400,344,828	$	92,951,429	$	115,121,091	$ 25,374,903

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, 2022, the valuation date, the Plan membership consisted of the following:

Inactive employees or beneficiaries currently receiving benefits payments                                                         1,417 Active employees                                                                                                                                                               3,608

Total	5,025

Benefits Provided

The District assesses its retirees for any District‐paid medical/Rx claims on behalf of its retirees and their dependents that exceed ten percent (10%) of the total claims paid (for active employees plus retirees) in any fiscal year. The assessment is made to all retirees in twelve equal payments from August through July of the following year.

51

Clovis Unified School District Notes to Financial Statements
June 30, 2023

Eligibility and benefit provisions specific to retirees are as follows:

Certificated and Classified ‐ employees are eligible to retire with District‐paid benefits after attaining age 55 and completing at least 15 years of service with the District for employees hired on or before August 31, 2007 (June 30, 2013 for CSEA members). Employees hired on or after September 1, 2007 (July 1, 2013 for CSEA members) are eligible to retire with District‐paid benefits after attaining age 62 and completing at least 30 years of service with the District. A year of service as it relates to the retirees is defined as a work year in which the employee works at least 50% for those hired on or before August 31, 2002 and 75% for those hired on or after
September 1, 2002. 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.

Medical and prescription drug benefits are paid for the lifetime of the retiree. Dental and vision benefits are continued for five years or until age 65.

If an employee hired prior to September 1, 2007 (July 1, 2013 for CSEA members) has met the 15‐year service and enrollment requirements, but retires prior to age 55, the retiree may continue coverage at his or her expense until age 55, at which time the retiree will be eligible for lifetime District‐paid benefits. District‐paid dental and vision benefits are also suspended from the time of retirement until age 55 in this situation. An employee hired before September 1, 2007 (July 1, 2013 for CSEA members) may retire under the disability provisions of the program, in which case the age 55 requirement is waived, and benefits are provided as described above.

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.

52

Clovis Unified School District Notes to Financial Statements
June 30, 2023

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, 2023, the District paid $7,624,045 in benefits which did not include credit for an implicit rate subsidy.

Total OPEB Liability of the District

The District’s total OPEB liability of $398,479,811 was measured as of June 30, 2023, and was determined by applying procedures to the financial reporting actuarial valuation as of July 1, 2022.

Actuarial Assumptions

The following assumptions were applied to all periods included in the measurement as of July 1, 2022, unless otherwise specified:

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

Entry age, level percent of pay 3.00%
2.75% 3.86%
6.00% for 2022‐2023; 5.50% for 2024; 5.25% for 2025‐2029;
5.00% for 2030‐2039; 4.75% for 2040‐2049; 4.50% for 2050‐2069 and 4.00% for 2070 and later; Medicare ages 4.50% for 2023‐2024 and 4.00% for all years after

Pre‐retirement mortality rates for active employees are from CalSTRS Experience Analysis (2015‐2018) and from CalPERS Experience Study (2000‐2019), 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 (2000‐2019), as appropriate, without projection.

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

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.
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, 2022, valuation were based on a standard set of assumptions used for similar valuations, modified as appropriate for the District.

53

Clovis Unified School District Notes to Financial Statements
June 30, 2023

Changes in the Total OPEB Liability

Total OPEB
	Liability	

Balance, June 30, 2022

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, 2023

 $ 367,509,441 

10,794,396 14,734,445 18,696,002
(5,630,428)
	(7,624,045) 

	30,970,370 

$ 398,479,811

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

Changes of Assumptions ‐ The discount rate was changed from 3.69% to 3.86% and the health care trend rate was changed from 5.00% to 6.00% since the previous valuation.

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 (2.86%)
Current discount rate (3.86%) 1% increase (4.86%)

Total OPEB
	Liability	

$ 475,204,032 398,479,811 338,619,435

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 (5.00%)
Current healthcare cost trend rate (6.00%) 1% increase (7.00%)

Total OPEB
	Liability	

$ 330,116,717 398,479,811 489,033,510

54

Clovis Unified School District Notes to Financial Statements
June 30, 2023

OPEB Expense, Deferred Outflows of Resources, and Deferred Outflows of Resources Related to OPEB

At June 30, 2023, District reported deferred outflows of resources and deferred inflow of resources related to OPEB from the following sources:

Deferred Outflows
	of Resources	

Deferred Inflows
	of Resources	

Differences between expected and actual experience Changes of assumptions and other inputs

$	34,225,196
	58,726,233 

$	‐
	115,121,091 

Total	$	92,951,429	$	115,121,091

Amounts reported as deferred outflows of resources and deferred inflows of resources related to changes of assumptions and differences between expected and actual experience 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,	

2024 2025 2026 2027 2028
Thereafter

Deferred Outflows
	of Resources	

$	16,999,259 16,999,259 16,999,259 16,999,262 11,379,723
	13,574,667 

Total	$	92,951,429

Year Ended
	June 30,	

2024 2025 2026 2027 2028
Thereafter

Deferred Inflows
	of Resources	

$	(16,803,572) (16,803,572) (16,803,572) (16,803,572) (16,803,572)
	(31,103,231)

Total	$	(115,121,091)

55

Clovis Unified School District Notes to Financial Statements
June 30, 2023

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, 2021, 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.

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, 2023, the District reported a liability of $1,865,017 for its proportionate share of the net OPEB liability for the MPP Program. The net OPEB liability was measured as of June 30, 2022, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2021. 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, 2022 and
June 30, 2021, respectively, was 0.5662% and 0.5552%, resulting in a net increase in the proportionate share of 0.0110%.

For the year ended June 30, 2023, the District recognized OPEB expense of $(349,625).

56

Clovis Unified School District Notes to Financial Statements
June 30, 2023

Actuarial Methods and Assumptions

The June 30, 2022 total OPEB liability was determined by applying update procedures to the financial reporting actuarial valuation as of June 30, 2021, and rolling forward the total OPEB liability to June 30, 2022, 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, 2022 June 30, 2021
July 1, 2015 through June 30, 2018
Entry age normal 3.54%
4.50% 5.40%

June 30, 2021 June 30, 2020
July 1, 2015 through June 30, 2018
Entry age normal 2.16%
4.50% 5.40%

For the valuation as of June 30, 2021, 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 members. The projection scale was set equal to 110% 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 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 209 or an average of 0.14% of the potentially eligible population (145,282).

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, 2022, 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, 2022, is 3.54%. 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 3.54%, which is the Bond Buyer 20‐Bond GO Index from Bondbuyer.com as of June 30, 2022, was applied to all periods of projected benefit payments to measure the total OPEB liability. The discount rate increased 1.38% from 2.16% as of
June 30, 2021.

57

Clovis Unified School District Notes to Financial Statements
June 30, 2023

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 (2.54%)
Current discount rate (3.54%) 1% increase (4.54%)

$	 2,033,227 1,865,017 1,719,368

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)

$	1,711,221 1,865,017 2,039,351

58

Clovis Unified School District Notes to Financial Statements
June 30, 2023

Note 10 ‐ Fund Balances

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

Nonspendable Revolving cash Stores inventories
Prepaid expenditures

Total nonspendable

Special Reserve	Non‐Major General	Building	Fund for Capital     Governmental
	Fund	 	Fund	  Outlay Projects  	Funds	 	Total	

$         144,000       $                      ‐       $                      ‐       $             3,500       $         147,500 1,458,342                              ‐                              ‐                 448,364              1,906,706
	380,000  	‐  	‐  	511,650  	891,650 

	1,982,342  	‐  	‐  	963,514  	2,945,856 

Restricted
Legally restricted programs	84,440,642	‐	‐	1,306,984	85,747,626 Student activities                                              ‐	‐	‐	3,470,545              3,470,545 Food service                                                       ‐	‐	‐           18,074,944	18,074,944 Childcare programs                                           ‐	‐	‐           15,668,039	15,668,039 Capital projects                                                  ‐           99,151,622         124,858,453         106,279,544         330,289,619
Debt services	                          ‐  	‐  	‐  	60,147,467  	60,147,467 

Total restricted	       84,440,642  	99,151,622  	124,858,453  	204,947,523  	513,398,240 

Committed
Site/Department long‐term
plans	17,530,653	‐	‐	‐	17,530,653 10% stabilization, BP 3100	61,249,845	‐	‐	‐	61,249,845 Deferred maintenance
program	‐	‐	‐	1,441,391	1,441,391 Textbooks                                          7,336,289	‐	‐                              ‐	7,336,289 Capital equipment refresh              7,074,916	‐	‐                              ‐	7,074,916 Technology refresh                          4,095,450	‐	‐                              ‐	4,095,450 Adult education future
program growth	‐	‐	‐	544,527	544,527 Adult education capital
improvements	                          ‐  	‐  	‐  	2,500,000  	2,500,000 

Total committed

Assigned
Childcare programs future growth
Charter school future program growth
Charter school capital improvements

Total assigned

Unassigned
Remaining unassigned

	97,287,153  	‐  	‐  	4,485,918  	101,773,071 

‐	‐	‐	1,947,721	1,947,721

‐	‐	‐	508,273	508,273

	‐  	‐  	‐  	9,686,432  	9,686,432 

	‐  	‐  	‐  	12,142,426  	12,142,426 

	59,467,737  	‐  	‐  	‐  	59,467,737 

Total	$243,177,874	$ 99,151,622	$124,858,453	$222,539,381	$689,727,330

59

Clovis Unified School District Notes to Financial Statements
June 30, 2023

Note 11 ‐ 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 $28,404,358 reported in the Self Insurance Fund at June 30, 2023, 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, damage, and destruction of assets; errors and omissions; injuries to employees and natural disasters. During fiscal year ending June 30, 2023, 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.

60

Clovis Unified School District Notes to Financial Statements
June 30, 2023

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, 2021 to June 30, 2023:

Workers’
	Health Care	      Compensation 

Stop‐Loss, Disability and
	Property	     	Total	

Liability Balance, July 1, 2021 Claims and changes in estimates Claims payments

Liability Balance, June 30, 2022 Claims and changes in estimates

$ 12,409,462 589,896
	‐ 

12,999,358
	‐ 

$ 15,019,911 ‐
	(287,911) 

14,732,000
	673,000 

$          706,862 ‐
	(706,862)

‐
	‐ 

$ 28,136,235 589,896
	(994,773) 

27,731,358
	673,000 

Liability Balance, June 30, 2023	$ 12,999,358	$ 15,405,000	$	‐	$ 28,404,358

Note 12 ‐ 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, 2023, 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 

$	262,131,970
	202,887,253 

Deferred Outflows
	of Resources	

$	69,097,615
	70,569,876 

Deferred Inflows
	of Resources	

$	33,622,026
	8,523,132 

 Pension Expense 

$	23,683,283
	26,636,968 

Total	$	465,019,223	$	139,667,491	$	42,145,158	$	50,320,251

61

Clovis Unified School District Notes to Financial Statements
June 30, 2023

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, 2021, 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% 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.

62

Clovis Unified School District Notes to Financial Statements
June 30, 2023

The STRP provisions and benefits in effect at June 30, 2023, 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% 19.10% 10.828%

On or after January 1, 2013 2% at 62
5 years of service Monthly for life 62
2.0% ‐ 2.4% 10.205% 19.10% 10.828%

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% of applicable member earnings phased over a seven‐year period. The contribution rates for each plan for the year ended June 30, 2023, are presented above and the District’s total contributions were $46,149,257.

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

At June 30, 2023, 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

$ 262,131,970
	131,274,666 

$ 393,406,636

The net pension liability was measured as of June 30, 2022. 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, 2022 and June 30, 2021, respectively, was 0.3772% and 0.3694%, resulting in a net increase in the proportionate share of 0.0078%.

63

Clovis Unified School District Notes to Financial Statements
June 30, 2023

For the year ended June 30, 2023, the District recognized pension expense of $23,683,283. In addition, the District recognized pension expense and revenue of $10,587,215 for support provided by the State. At
June 30, 2023, 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

$	46,149,257

9,733,491

‐

215,029
	12,999,838 

$	‐

1,148,838

12,818,761

19,654,427
	‐ 

Total	$	69,097,615	$	33,622,026

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 and deferred inflows 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,	

2024 2025 2026 2027

Deferred Outflows/(Inflows)
	of Resources	

$	 (9,416,331) (10,201,000) (15,323,977)
	22,122,547 

Total	$	(12,818,761)

64

Clovis Unified School District Notes to Financial Statements
June 30, 2023

The deferred outflows of resources and deferred 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,	

2024 2025 2026 2027 2028
Thereafter

Deferred Outflows/(Inflows)
	of Resources	

$	10,284,264 (834,048)
(1,818,810) (1,940,653) (2,795,741)
	(749,919) 

Total	$	2,145,093

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, 2021, and rolling forward the total pension liability to June 30, 2022. The financial reporting actuarial valuation as of June 30, 2021, 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, 2021 June 30, 2022
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% of the ultimate improvement factor from the Mortality Improvement Scale (MP‐2019) table, issued by the Society of Actuaries.

65

Clovis Unified School District Notes to Financial Statements
June 30, 2023

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 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 current and future valuation, CalSTRS’ independent 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, 2022, 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%. 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 of 7.10% and assume 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	

$ 445,197,308 262,131,970 110,132,699

66

Clovis Unified School District Notes to Financial Statements
June 30, 2023

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, 2021, 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, 2023, 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% 25.370%

On or after January 1, 2013 2% at 62
5 years of service Monthly for life 62
1.0% ‐ 2.5% 8.00% 25.370%

67

Clovis Unified School District Notes to Financial Statements
June 30, 2023

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 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, 2023, are presented above and the total District contributions were $25,660,578.

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

As of June 30, 2023, the District reported net pension liabilities for its proportionate share of the CalPERS net pension liability totaling $202,887,253. The net pension liability was measured as of June 30, 2022. 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, 2022 and
June 30, 2021, respectively, was 0.5896% and 0.5658%, resulting in a net increase in the proportionate share of 0.0238%.

For the year ended June 30, 2023, the District recognized pension expense of $26,636,968. At June 30, 2023, 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

$	25,660,578

5,028,456

23,955,466

916,931
	15,008,445 

$	‐

3,475,038

‐

5,048,094
	‐ 

Total	$	70,569,876	$	8,523,132

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.

68

Clovis Unified School District Notes to Financial Statements
June 30, 2023

The deferred outflows of resources and deferred inflows 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,	

2024 2025 2026 2027

Deferred Outflows/(Inflows)
	of Resources	

$	 3,995,010 3,543,298 1,809,959
	14,607,199 

Total	$	23,955,466

The deferred outflows of resources and deferred 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 3.9 years and will be recognized in pension expense as follows:

Year Ended
	June 30,	

2024 2025 2026 2027

Deferred Outflows/(Inflows)
	of Resources	

$	 3,909,128 3,931,254 4,584,873
	5,445 

Total	$	12,430,700

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, 2021, and rolling forward the total pension liability to June 30, 2022. The financial reporting actuarial valuation as of June 30, 2021, 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, 2021 June 30, 2022
July 1, 1997 through June 30, 2015 Entry age normal
6.90% 6.90% 2.30%
Varies by entry age and service

69

Clovis Unified School District Notes to Financial Statements
June 30, 2023

The mortality table used was developed based on CalPERS‐specific data. The rates incorporate Generational Mortality to capture ongoing mortality improvement using 80% of Scale MP‐2020 published by the Society of Actuaries.

In determining the long‐term expected rate of return, CalPERS took into account long‐term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated and, combined with risk estimates, are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long‐term projected portfolio return. 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 ‐ cap‐weighted Global Equity non‐cap‐weighted Private Equity
Treasury
Mortgage‐backed Securities Investment Grade Corporates
High Yield
Emerging Market Debt Private Debt
Real Assets Leverage

Assumed Asset
	Allocation	

30% 12% 13% 5%
5% 10%
5% 5% 5% 15% (5%)

Long‐Term Expected Real
 Rate of Return 

4.45% 3.84% 7.28% 0.27%
0.50% 1.56%
2.27% 2.48% 3.57% 3.21% (0.59%)

Discount Rate

The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used to determine the discount rate assumed the contributions from plan members and employers will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. 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 expected rate of return on the School Employer Pool investments 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 (5.90%)
Current discount rate (6.90%) 1% increase (7.90%)

Net Pension
	Liability	

$ 293,080,910 202,887,253 128,345,510

70

Clovis Unified School District Notes to Financial Statements
June 30, 2023

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% of gross salary to APPLE. The District is required to contribute 3.75% of gross salary expenditures to APPLE. The District’s contributions to APPLE for the fiscal year ending June 30, 2023, 2022, 2021 were $232,742, $223,835, and $194,536, 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 $21,059,194 (10.828% 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.

Note 13 ‐ 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, 2023.

71

Clovis Unified School District Notes to Financial Statements
June 30, 2023

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, 2023.

Construction Commitments

As of June 30, 2023, the District had the following commitments with respect to the unfinished capital projects:

Remaining	Expected Construction                  Date of
	Location	 	Description	  Commitment  	Completion	

Terry Bradly Education Center

Various sites Various sites
Clark Intermediate School Cole Elementary School Various sites
Woods Elementary School Various sites
Clovis East High School Hirayama Elementary School

New junior high school New high school
EMS upgrade Snack bar upgrade
Mercedes Edwards Theatre (MET) Roof
Paving Portable Painting Soccer stadium
New elementary school site

$ 33,089,438

32,389 33,543 1,792,564 638,177 1,306,300 155,750 243,104 3,929,422
	42,427,883 

August 2025 August 2027 October 2023 October 2023 June 2024 June 2024
December 2024 December 2024 December 2023 June 2024 August 2024

Total	$ 83,648,570

Note 14 ‐ 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.

72

Clovis Unified School District Notes to Financial Statements
June 30, 2023

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

During the year ended June 30, 2023, the District made no direct payments to SELF for liability insurance coverage. The payments are made through ASCIP.

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

During the year ended June 30, 2023, the District made payments of $4,072,373 to ASCIP for property and liability insurance coverage and $1,110,157 for workers’ compensation insurance coverage.

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, 2023, 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.

During the year ended June 30, 2023, the District made payments of $6,743,585 to CVSS for debt service.

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

During the year ended June 30, 2023, the District made payments of $3,048,848 to CART for the financing and operation of a joint technical center for high school age students.

Note 15 ‐ Subsequent Events

2023 Refunding General Obligation Bond Issuance

On July 11, 2023, the District issued $8,000,000 refunding general obligation bonds, to be funded by the taxpayers within the District, the net proceeds of the 2023 Refunding Bonds will be used to refund certain maturities of outstanding 2012 Series D bonds aggregate original principal amount of $103,007,034. The interest rate on the bonds is 4.00% with the final maturity August 1, 2025. Interest payments are required on the outstanding bonds each February 1 and August 1 commencing August 1, 2023.

2023 Certificates of Participation Issuance

On July 11, 2023, Central Valley Support Services Joint Powers Agency (CVSS) issued $54,090,000 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 pay delivery costs. The interest rates on the COPS are 5.0% with the final maturity June 1, 2053. Interest payments are required on the outstanding COPS each June 1 and December 1 commencing December 1, 2023.

73

Clovis Unified School District Notes to Financial Statements
June 30, 2023

Note 16 ‐ Adoption of New Accounting Standard

As of July 1, 2022, the District adopted GASB Statement No. 96, Subscription‐Based Information Technology Arrangements (SBITAs). The implementation of this standard establishes that a SBITA results in a right‐to‐use subscription IT asset – an intangible asset – and a corresponding liability. The standard provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA. The Statement requires recognition of certain SBITA assets and liabilities for SBITAs that previously were recognized as outflows of resources based on the payment provisions of the contract. Beginning net position and fund balance were restated to retroactively adopt the provisions of GASB Statement No. 96 as follows:

Governmental Activities
Net Position ‐ Beginning, as previously reported on June 30, 2022 Right‐to‐use subscription IT assets, net of amortization Subscription liabilities
Prepaid assets

Net Position ‐ Beginning as Restated as of July 1, 2022

Charter Schools Fund (Non‐Major Governmental)
Fund Balance ‐ Beginning, as previously reported on June 30, 2022 Prepaid assets

$ 113,242,889 1,274,029
(611,545)
	(168,000) 

$ 113,737,373

$	8,189,352
	(168,000) 

Fund Balance ‐ Beginning as Restated as of July 1, 2022	$	8,021,352

74

Required Supplementary Information June 30, 2023
Clovis Unified School District

eidebailly.com

Clovis Unified School District Budgetary Comparison Schedule – General Fund
Year Ended June 30, 2023

Budgeted Amounts Original	Final

Variances ‐ Positive (Negative) Final
Actual	to Actual

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

Total revenues

Expenditures Current
Certificated salaries Classified salaries Employee benefits Books and supplies
Services and operating expenditures Other outgo
Capital outlay Debt service
Debt service ‐ principal
Debt service ‐ interest and other

Total expenditures

Excess (Deficiency) of Revenues Over Expenditures

Other Financing Sources (Uses) Transfers in
Proceeds from Subscription‐Based IT Arrangements
Transfers out

Net financing sources (uses)

Net Change in Fund Balances

Fund Balance ‐ Beginning

Fund Balance ‐ Ending

$455,232,685 75,862,692 138,005,713 15,483,557

684,584,647

219,860,053 93,766,105 168,484,276 127,937,740 42,549,152
(144,888) 4,495,952

419,547 11,943

657,379,880

27,204,767

836,000

‐ (7,471,066)

(6,635,066)

20,569,701

166,043,780

$186,613,481

$469,055,149 46,258,118 157,473,196 16,676,990

689,463,453

244,642,753 98,474,880 170,310,704 38,551,999 42,990,675
(288,927) 6,662,931

4,676,819 26,986

606,048,820

83,414,633

332,806

‐ (10,721,944)

(10,389,138)

73,025,495

166,043,780

$239,069,275

469,055,149	$ 46,258,118
157,473,196 16,676,990

689,463,453

244,642,753 98,474,880 170,310,704 38,551,999 42,990,675
(353,963) 6,662,931

4,676,819 26,986

605,983,784

83,479,669

332,806

4,043,563 (10,721,944)

(6,345,575)

77,134,094

166,043,780

$243,177,874	$

‐ ‐ ‐ ‐

‐

‐ ‐ ‐ ‐ ‐
65,036 ‐

‐ ‐

65,036

65,036

‐

4,043,563 ‐

4,043,563

4,108,599

‐

4,108,599

See Notes to Required Supplementary Information	75

Clovis Unified School District Schedule of Changes in the District’s Total OPEB Liability and Related Ratios
Year Ended June 30, 2023

	2023	       	2022	       	2021	

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

$ 10,794,396 14,734,445 18,696,002
(5,630,428)
	(7,624,045)

30,970,370

	367,509,441 

$ 398,479,811

N/A 1

N/A 1

June 30, 2023

$ 18,589,705 9,709,103
‐ (142,485,804)
	(10,741,553)

(124,928,549)

	492,437,990 

$ 367,509,441

N/A 1

N/A 1

June 30, 2022

$ 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

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	76

Clovis Unified School District Schedule of Changes in the District’s Total OPEB Liability and Related Ratios
Year Ended June 30, 2023

	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

$ 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	77

Clovis Unified School District Schedule of the District’s Proportionate Share of the Net OPEB Liability – MPP Program
Year Ended June 30, 2023

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

	2023	

	0.5662% 

 $	1,865,017 

N/A 1

N/A 1

	(0.94%) 

June 30, 2022

	2022	

	0.5552% 

 $	2,214,642 

N/A 1

N/A 1

	(0.80%)

June 30, 2021

	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	78

Clovis Unified School District Schedule of the District’s Proportionate Share of the Net Pension Liability
Year Ended June 30, 2023

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

	2023	

	0.3772% 

$ 262,131,970
	131,274,666 

$ 393,406,636

 $ 216,162,199 

	121.27%

	81%

June 30, 2022

	0.5896%

 $ 202,887,253 

 $ 90,718,293 

	223.65%

	70%

June 30, 2022

	2022	

	0.3694%

168,097,217
	84,580,000 

$ 252,677,217

 $ 199,959,300 

	84.07%

	87%

June 30, 2021

	0.5658%

 $ 115,053,609 

 $ 81,379,290 

	141.38%

	81%

June 30, 2021

	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

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

See Notes to Required Supplementary Information	79

Clovis Unified School District Schedule of the District’s Proportionate Share of the Net Pension Liability
Year Ended June 30, 2023

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

	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

	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

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

See Notes to Required Supplementary Information	80

Clovis Unified School District Schedule of the District’s Contributions Year Ended June 30, 2023

	2023	       	2022	       	2021	       	2020	       	2019	

CalSTRS

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

$ 46,149,257

	46,149,257 

$ 36,574,644

	36,574,644 

$ 32,293,427

	32,293,427 

$ 33,819,487

	33,819,487 

$ 31,357,995

	31,357,995 

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

Covered payroll

Contributions as a percentage of covered payroll

 $ 241,619,147 

	19.10% 

 $ 216,162,199 

	16.92%

 $ 199,959,300 

	16.15% 

 $ 197,774,778 

	17.10% 

 $ 192,616,677 

	16.28% 

CalPERS

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

$ 25,660,578

	25,660,578 

$ 20,783,561

	20,783,561 

$ 16,845,513

	16,845,513 

$ 16,573,262

	16,573,262 

$ 14,479,421

	14,479,421 

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

Covered payroll

Contributions as a percentage of covered payroll

 $ 101,145,361 

	25.370% 

 $ 90,718,293 

	22.910%

 $ 81,379,290 

	20.700% 

 $ 84,038,649 

	19.721%

 $ 80,165,104 

	18.062% 

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

See Notes to Required Supplementary Information	81

Clovis Unified School District Schedule of the District’s Contributions Year Ended June 30, 2023

CalSTRS

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

	2018	

$ 27,195,966

	27,195,966 

	2017	

$ 22,942,735

	22,942,735 

	2016	

$ 18,423,302

	18,423,302 

	2015	

$ 14,478,017

	14,478,017 

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

Covered payroll

Contributions as a percentage of covered payroll

 $ 188,468,233 

	14.43% 

 $ 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

$ 11,525,394

	11,525,394 

$	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

 $ 74,208,963 

	15.531% 

 $ 70,034,469 

	13.888% 

 $ 64,365,730 

	11.847% 

 $ 60,511,656 

	11.771% 

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

See Notes to Required Supplementary Information	82

Clovis Unified School District Notes to Required Supplementary Information
June 30, 2023

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.

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 discount rate was changed from 3.69% to 3.86% and the health care cost trend rate was changed from 5.00% to 6.00% since last study.

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 plan’s 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 2.16% to
3.54% since the previous valuation.

83

Clovis Unified School District Notes to Required Supplementary Information
June 30, 2023

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 the CalSTRS plan from the previous valuations. The CalPERS plan rate of investment return assumption was changed from 7.15% to 6.90% since the previous valuation.

Schedule of the District’s 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.

84

Supplementary Information June 30, 2023
Clovis Unified School District

eidebailly.com

Clovis Unified School District Schedule of Expenditures of Federal Awards Year Ended June 30, 2023

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

Pass‐Through Federal Financial	Entity
Assistance	Identifying Listing Number          Number

Federal Expenditures

U.S. Department of Education
Indian Education ‐ Grants to Local Educational Agencies School Climate Transformation

84.060 84.184G

[1]                 $        162,197 [1]                          703,156

Student Financial Assistance Cluster: Federal Pell Grant Program	84.063	[1]	291,417

Total Student Financial Assistance Cluster	291,417

Passed Through California Department of Education (CDE) Special Education Cluster
Special Education Grants to States ‐ Basic Local Assistance COVID‐19, Special Education: ARP IDEA Part B, Local
Assistance Entitlement
Special Education Grants to States ‐ Mental Health Special Education Grants to States ‐ Private School ISP

84.027	13379

84.027                   15638 84.027A                  15197 84.027                   10115

7,790,653

1,602,032 491,497 2,800

Subtotal (84.027)	9,886,982

Special Education Preschool Grants
COVID‐19, Special Education: ARP IDEA, Preschool Grants Special Education Preschool Grants ‐ Alternate
Dispute Resolution
Special Education Preschool Grants ‐ Preschool Staff Development

84.173                   13430 84.173                   15639

84.173A	13007

84.173	13431

119,661 126,441

14,922

2,537

Subtotal (84.173)

Total Special Education Cluster

263,561

10,150,543

COVID‐19, Elementary and Secondary School Emergency Relief Fund II (ESSER II)
COVID‐19, Expanded Learning Opportunities (ELO) Grant: ESSER II: State Reserve
COVID‐19, Expanded Learning Opportunities (ELO) Grant GEER II
COVID‐19, Elementary and Secondary School Emergency Relief Fund III (ESSER III)
COVID‐19, Expanded Learning Opportunities (ELO) Grant: ESSER III: State Reserve, Emergency Needs
COVID‐19, Elementary and Secondary School Emergency Relief Fund III (ESSER III): Learning Loss
COVID‐19, Expanded Learning Opportunities (ELO) Grant: ESSER III: State Reserve, Learning Loss
COVID‐19, American Rescue Plan ‐ Homeless Children and Youth II (ARP HYC II)

84.425D

84.425D

84.425C

84.425U

84.425U

84.425U

84.425U

84.425W

15547	12,761,180

15618	554,194

15619	463,049

15559	6,445,899

15620	31,717

10155	3,074,638

15621	464,273

15566	4,245

Subtotal (84.425)	23,799,195

[1] Not applicable, District is direct funded

See Notes to Supplementary Information	85

Clovis Unified School District Schedule of Expenditures of Federal Awards Year Ended June 30, 2023

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

U.S. Department of Education

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

Passed Through California Department of Education (CDE) Adult Education ‐ Basic Grants to States: Adult Basic Adult Education ‐ Basic Grants to States: Adult Secondary

84.002A                  14508 84.002                   13978

279,900 448,070

Subtotal (84.002)	727,970

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

84.010                   14329 84.010                   15438

7,296,111 603,571

Subtotal (84.010)	7,899,682

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

84.365                   15146 84.365                   14346

362 298,914

Subtotal (84.365)	299,276

Career and Technical Education ‐ Basic Grants to States, Secondary
Career and Technical Education ‐ Basic Grants to States, Adult, Section 132

84.048	14894

84.048	14893

269,848

20,254

Subtotal (84.048)	290,102

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

84.367	14341 84.424	15396 84.181	23761

84.126	10006

1,951,953 636,203 81,623

156,577

Total U.S. Department of Education	47,149,894

U.S. Department of Health and Human Services
Passed Through California Department of Social Services
CCDF Cluster: COVID‐19, Child Development: ARP California
State Preschool Program One‐time Stipend	93.575	15640	202,169

Total CCDF Cluster

Total U.S. Department of Health and Human Services

202,169

202,169

U.S. Department of Defense
ROTC Language and Culture Training Grants	12.357	[1]	72,580

Total U.S. Department of Defense	72,580

[1] Not applicable, District is direct funded

See Notes to Supplementary Information	86

Clovis Unified School District Schedule of Expenditures of Federal Awards Year Ended June 30, 2023

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

Pass‐Through Federal Financial	Entity
Assistance	Identifying Listing Number          Number

Federal Expenditures

Federal Communications Commission
COVID‐19, Emergency Connectivity Funds	12.357	[1]	221,499

Total Federal Communications Commission	221,499

U.S. Department of Agriculture
Passed Through California Department of Education Child Nutrition Cluster
National School Lunch Program
National School Lunch Program ‐ Meal Supplements Supply Chain Assistance (SCA) Funds
National School Lunch Program ‐ Commodity Supplemental Food

10.555	13391 10.555	13396 10.555	15655

10.555	13391

9,273,343 106,641 915,806

1,554,018

Subtotal (10.555)	11,849,808

School Breakfast Program ‐ National School Breakfast                     10.553 School Breakfast Program ‐ Especially Needy Breakfast                   10.553

13525                         89,703 13526                   2,045,548

Subtotal (10.553)	2,135,251

National School Lunch Program ‐ Summer Food Program	10.559	13004	103,432

Total Child Nutrition Cluster

Total U.S. Department of Agriculture

Total Federal Financial Assistance

See Notes to Supplementary Information

14,088,491

14,088,491

$ 61,734,633

87

Clovis Unified School District Local Education Agency Organization Structure
June 30, 2023

Organization

The Clovis Unified School District was established in 1960 and consists of an area comprising approximately 198 square miles. The District operates thirty‐four 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

David DeFrank Hugh Awtrey Steven G. Fogg
Deena Combs‐Flores Yolanda Moore Clinton Olivier
Tiffany Stoker Madsen

Office

President
Vice President Clerk
Member Member Member Member

Term Expires

2024 2024 2024 2026 2024 2026 2026

Administration

Eimear O’Brien, Ed.D. Norm Anderson Michael Johnston Barry Jager
Marc Hammack, Ed.D. Susan Rutledge

Superintendent
Deputy Superintendent
Associate Superintendent, Administrative Services
Associate Superintendent, Human Resources and Employee Relations Associate Superintendent, School Leadership
Assistant Superintendent, Business Services

See Notes to Supplementary Information	88

Clovis Unified School District Schedule of Average Daily Attendance Year Ended June 30, 2023

Clovis Unified School District Regular ADA
Transitional kindergarten through third Fourth through sixth
Seventh and eighth Ninth through twelfth

Total regular ADA

Extended Year Special Education Transitional kindergarten through third Fourth through sixth
Seventh and eighth Ninth through twelfth

Total extended year special education

Special Education, Nonpublic, Nonsectarian Schools Transitional kindergarten through third
Fourth through sixth Seventh and eighth Ninth through twelfth

Total special education, nonpublic, nonsectarian schools

Extended Year Special Educa on, Nonpublic, Nonsectarian Schools Ninth through twelfth

Total extended year special education, nonpublic, nonsectarian schools

Community Day School Fourth through sixth Seventh and eighth Ninth through twelfth

Total community day school

Total ADA

Clovis Online Charter School
Regular ADA, Non‐Classroom Based Transitional kindergarten through third Fourth through sixth
Seventh and eighth Ninth through twelfth

Total regular ADA

Second Period
	Report	

11,645.85 9,214.09 6,263.54
	12,238.37 

	39,361.85 

15.18 8.17 3.45
	11.21 

	38.01 

1.30 2.80 2.18
	7.27 

	13.55 

	0.71 

	0.71 

4.10 16.96
	29.10 

	50.16 

39,464.28

74.35 90.80 109.54
	563.43 

838.12

Annual
	Report	

11,684.44 9,223.34 6,256.85
	12,138.27 

	39,302.90 

15.18 8.17 3.45
	11.21 

	38.01 

1.13 2.49 1.85
	6.06 

	11.53 

	0.71 

	0.71 

4.70 16.69
	31.16 

	52.55 

39,405.70

75.32 94.37 114.00
	565.43 

849.12

See Notes to Supplementary Information	89

Clovis Unified School District Schedule of Instructional Time
Year Ended June 30, 2023

	Grade Level	

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

1986‐1987 Minutes
	Requirement	

36,000 50,400

54,000

64,800

2022‐2023 Actual
	Minutes	

36,045

56,475 56,475 56,475

56,655 56,655 56,655 62,785 62,785

65,263 65,263 65,263 65,263

Number of Actual
	Days	

180

180 180 180

180 180 180 181 181

181 181 181 181

	Status	

Complied

Complied Complied Complied

Complied Complied Complied Complied Complied

Complied Complied Complied Complied

See Notes to Supplementary Information	90

Clovis Unified School District Reconciliation of Annual Financial and Budget Report with Audited Financial Statements
Year Ended June 30, 2023

Summarized below are the fund balance reconciliations between the Unaudited Actual Financial Report and the audited financial statements.

General
	Fund	

Charter School
	Fund	

Net Position
Balance, June 30, 2023, Unaudited Actuals Decrease in prepaid assets *

$ 243,341,589
	(163,715) 

$ 12,094,119
	(84,000) 

Balance, June 30, 2023, Audited Financial Statements	$ 243,177,874	$ 12,010,119

* Due to the implementation of GASB Statement No. 96.

See Notes to Supplementary Information	91

Clovis Unified School District Schedule of Financial Trends and Analysis Year Ended June 30, 2023

(Budget)
2024 1	             2023	              2022 1	2021 1

General Fund Revenues
Other sources and tranfers in

Total Revenues
and Other Sources

Expenditures
Other uses and transfers out

Total Expenditures and Other Uses

Increase in Fund Balance

$ 660,094,247	$	689,463,453	$	570,253,756	$	552,135,341
	330,000  	332,806  	2,036,000  	1,142,375 

	660,424,247  	689,796,259  	572,289,756  	553,277,716 

636,538,065	601,940,221	556,637,957	516,940,343
	6,971,136  	10,721,944  	12,950,750  	4,076,521 

	643,509,201  	612,662,165  	569,588,707  	521,016,864 

	16,915,046  	77,134,094  	2,701,049  	32,260,852 

Ending Fund Balance	$ 260,092,920	$	243,177,874	$	166,043,780	$	163,342,731

Available Reserves 2	$ 64,472,768	$	59,467,737	$	56,282,327	$	116,853,507

Available Reserves as a Percentage of Total Outgo

Long‐Term Liabilities3

Average Daily Attendance at P‐2

10.02%

Not Available

39,464

9.71%

$ 1,552,664,023

39,464

9.88%

$ 1,270,437,289

38,644

22.43%

$ 1,566,519,197

41,558

The General Fund balance has increased by $79,835,143 over the past two years. The fiscal year 2023‐2024 budget projects an increase of $16,915,046 (7%). 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 2023‐2024 fiscal year. Total long‐term obligations have decreased by $13,855,174 over the past two years due to changes in the District’s net pension liability and other postemployment benefits obligations in the current year.

Average daily attendance has decreased by 2,094 over the past two years. Actual ADA is planned to increase during 2023‐24 and ongoing. The District is currently being funded using the prior three‐year average.

1 Financial information for 2024, 2022, and 2021 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.
3 The long‐term liabilities balance was restated as of June 30, 2022, due to the implementation of GASB Statement No. 96. Long‐term liabilities balance was restated as of June 30, 2021, due to the implementation of GASB Statement No. 87.
See Notes to Supplementary Information	92

Clovis Unified School District Schedule of Charter Schools
Year Ended June 30, 2023

Name of Charter School

Clovis Online School

Charter
	Number	

1006

Included in
 Audit Report 

Yes

See Notes to Supplementary Information	93

Clovis Unified School District Combining Balance Sheet – Non‐Major Governmental Funds
June 30, 2023

Assets
Deposits and investments
Receivables
Due from other funds Prepaid expenditures Stores inventories

Bond	Total Student	Adult	Child	Deferred	Capital	County School	Interest and           Non‐Major
Activities	Charter School	Education	Development	Cafeteria	Maintenance	Facilities	Facilities	Redemption	Governmental
	Fund	 	Fund	 	Fund	 	Fund	 	Fund	 	Fund	 	Fund	 	Fund	 	Fund	 	Funds	

$ 3,470,545	$ 9,677,844	$ 2,363,771	$19,336,825	$ 12,842,100	$ 1,786,187	$51,191,227	$ 57,389,144	$ 60,147,467	$ 218,205,110 ‐              474,420             868,013           1,181,824            6,158,726                          ‐                            ‐                             ‐                               ‐              8,682,983 ‐           1,767,079                          ‐                            ‐               100,000                          ‐                            ‐                             ‐                               ‐              1,867,079 ‐              511,650                          ‐                            ‐                            ‐                          ‐                            ‐                             ‐                               ‐                  511,650
	‐  	‐  	69,150  	‐  	379,214  	‐  	‐  	‐  	‐  	448,364 

Total assets	$ 3,470,545	$12,430,993	$ 3,300,934	$20,518,649	$ 19,480,040	$ 1,786,187	$51,191,227	$ 57,389,144	$ 60,147,467	$ 229,715,186

Liabilities and Fund Balances

Liabilities
Accounts payable Due to other funds Unearned revenue

Total liabilities

Fund Balances Nonspendable Restricted Committed Assigned

Total fund balances

$                  ‐      $      395,874      $       59,380      $       140,268      $       832,495      $     344,796      $ 1,784,323      $                     ‐      $                       ‐      $      3,557,136 ‐                            ‐             121,157           2,762,621               193,387                          ‐              352,361               164,143                               ‐              3,593,669
	‐  	25,000  	‐  	‐  	‐  	‐  	‐  	‐  	‐  	25,000 

	‐  	420,874  	180,537  	2,902,889  	1,025,882  	344,796  	2,136,684  	164,143  	‐  	7,175,805 

‐              511,650               72,650                            ‐               379,214                          ‐                            ‐                             ‐                               ‐                  963,514 3,470,545           1,303,764                  3,220         15,668,039         18,074,944                          ‐         49,054,543          57,225,001            60,147,467          204,947,523 ‐                            ‐          3,044,527                            ‐                            ‐          1,441,391                            ‐                             ‐                               ‐              4,485,918
	‐  	10,194,705  	‐  	1,947,721  	‐  	‐  	‐  	‐  	‐  	12,142,426 

	3,470,545  	12,010,119  	3,120,397  	17,615,760  	18,454,158  	1,441,391  	49,054,543  	57,225,001  	60,147,467  	222,539,381 

Total liabilities and
fund balances	$ 3,470,545	$12,430,993	$ 3,300,934	$20,518,649	$ 19,480,040	$ 1,786,187	$51,191,227	$ 57,389,144	$ 60,147,467	$ 229,715,186

See Notes to Supplementary Information	94

Clovis Unified School District Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Non‐Major Governmental Funds
Year Ended June 30, 2023

Student Activities Fund

Charter School Fund

Adult Education Fund

Child Development Fund

Cafeteria Fund

Deferred Maintenance Fund

Capital Facilities Fund

County School Facilities Fund

Bond Interest and Redemption 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
Interest and other

Total expenditures

$	‐ ‐ ‐
7,047,129

7,047,129

‐

‐

‐ ‐

‐ ‐

‐ ‐
7,055,530 ‐

‐ ‐

7,055,530

$ 10,052,210 146,214 1,585,572
(7,642)

11,776,354

5,884,828

43,541

98,302 586,516

‐ 861,778

255,437 57,185 ‐
‐

‐ ‐

7,787,587

$		‐ 1,039,641 2,778,478 1,818,956

5,637,075

2,935,804

667,389

45,295 2,092,903

‐ 376,626

127,616 369,371 ‐ 26,831

‐ ‐

6,641,835

$                      ‐ 246,910 26,671,469 4,744,993

31,663,372

16,046,120

3,551,788

‐ ‐

‐ 257,193

954,878 ‐ ‐
1,260,288

252,000 ‐

22,322,267

$                     ‐ 14,147,773 13,472,046 179,640

27,799,459

‐

‐

‐ ‐

19,807,928 ‐

521,694 ‐ ‐
15,010

220,000 177,200

20,741,832

$	‐ ‐ ‐
(36,843)

(36,843)

‐

‐

‐ ‐

‐ ‐

‐ 886,326 ‐
1,446,211

‐ ‐

2,332,537

$	 ‐ ‐ ‐
13,519,337

13,519,337

‐

‐

‐ ‐

‐ ‐

‐ 2,394,067 ‐ 6,746,281

2,415,000 2,850,144

14,405,492

$                      ‐ ‐
16,490,615 126,999

16,617,614

‐

‐

‐ ‐

‐ ‐

‐ ‐ ‐
323,544

‐ ‐

323,544

$                      ‐ ‐
309,194 53,849,498

54,158,692

‐

‐

‐ ‐

‐ ‐

‐ ‐ ‐ ‐

41,300,001 9,747,891

51,047,892

$ 10,052,210 15,580,538 61,307,374 81,242,067

168,182,189

24,866,752

4,262,718

143,597 2,679,419

19,807,928 1,495,597

1,859,625 3,706,949 7,055,530 9,818,165

44,187,001 12,775,235

132,658,516

Excess (Deficiency) of Revenues Over Expenditures

Other Financing Sources (Uses) Transfers in
Premium on bond issuance Transfers out

(8,401)

‐ ‐ ‐

3,988,767

‐ ‐ ‐

(1,004,760)

846,880 ‐ ‐

9,341,105

‐ ‐ ‐

7,057,627

‐

‐

(2,369,380)

3,800,000 ‐ ‐

(886,155)

‐ ‐
(1,330,000)

16,294,070

‐ ‐
(3,886,387)

3,110,800

‐ 4,592,504 ‐

35,523,673

4,646,880 4,592,504 (5,216,387)

See Notes to Supplementary Information	95

Clovis Unified School District Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Non‐Major Governmental Funds
Year Ended June 30, 2023

Student Activities Fund

Charter School Fund

Adult Education Fund

Child Development Fund

Cafeteria Fund

Deferred Maintenance Fund

Capital Facilities Fund

County School Facilities Fund

Bond Interest and Redemption Fund

Total Non‐Major Governmental Funds

Net Financing Sources (Uses)

Net Change in Fund Balances

Fund Balance ‐ Beginning as Restated

Fund Balance ‐ Ending

‐

(8,401)

3,478,946

$     3,470,545

‐

3,988,767

8,021,352

$ 12,010,119

846,880

(157,880)

3,278,277

$     3,120,397

‐

9,341,105

8,274,655

$ 17,615,760

‐

7,057,627

11,396,531

$ 18,454,158

3,800,000

1,430,620

10,771

$     1,441,391

(1,330,000)

(2,216,155)

51,270,698

$ 49,054,543

(3,886,387)

12,407,683

44,817,318

$ 57,225,001

4,592,504

7,703,304

52,444,163

$ 60,147,467

4,022,997

39,546,670

182,992,711

$222,539,381

See Notes to Supplementary Information	96

Clovis Unified School District Notes to Supplementary Information June 30, 2023

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, 2023. 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 net position, changes in net position or fund balances of Clovis Unified School 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, 2023, the District had used $1,554,018 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 COVID‐19, Child Development: ARP California State Preschool Program One‐Time Stipend prior year revenues expended in the current year, COVID‐19, Child Development: ARP California State Preschool Program – Rate Supplement and Supply Chain Assistance (SCA) Funds unspent revenues received.

Description
Total Federal Revenues reported on the financial statements CCDF Cluster: COVID‐19, Child Development: ARP California
State Preschool Program One‐time Stipend COVID‐19, Child Development: ARP California State
Preschool Program ‐ Rate Supplement Supply Chain Assistance (SCA) Funds

Federal Financial Assistance
 Listing Number 

93.575

93.575 10.555

	Amount	

$ 61,838,656

202,169

(246,910)
	(59,282) 

Total Federal Financial Assistance	$ 61,734,633

97

Clovis Unified School District Notes to Supplementary Information June 30, 2023

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 Average Daily Attendance (ADA)

Average daily attendance (ADA) is a measurement of the number of pupils attending classes of the District. The purpose of attendance accounting from a fiscal standpoint is to provide the basis on which apportionments of State funds are made to school districts. This schedule provides information regarding the attendance of students at various grade levels and in different programs.

Schedule of Instructional Time

The District has received incentive funding for increasing instructional time as provided by the Incentives for Longer Instructional Day. The District has met its target funding. This schedule presents information on the amount of instructional time offered by the District and whether the District complied with the provisions of Education Code Sections 46200 through 46207.

Districts must maintain their instructional minutes at the 1986‐87 requirements, as required by Education Code Section 46201.

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.

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Independent Auditor’s Reports June 30, 2023
Clovis Unified School District

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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 (Government Auditing Standards), the 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, 2023, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements and have issued our report thereon dated December 14, 2023.

Adoption of New Accounting Standard

As discussed in Notes 1 and 16 to the financial statements, the District has adopted the provisions of Governmental Accounting Standards Board (GASB) Statement No. 96, Subscription‐Based Information Technology Arrangements, for the year ended June 30, 2023. Accordingly, a restatement has been made to the governmental activities net position and the Charter School Non‐Major Governmental Fund beginning fund balance as of July 1, 2022. Our opinions are not modified with respect to this matter.

Report on Internal Control over Financial Reporting

In planning and performing our audit of the financial statements, we considered the 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 the District’s internal control. Accordingly, we do not express an opinion on the effectiveness of the 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.

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6051 N. Fresno St., Ste. 101 | Fresno, CA 93710-5280 | T 559.248.0871 | F 559.248.0875 | EOE

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 material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.

Report on Compliance and Other Matters

As part of obtaining reasonable assurance about whether the 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 no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

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 District’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 District’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Fresno, California December 14, 2023

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Independent Auditor’s Report on Compliance for Each Major Federal Program; Report 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

Opinion on Each Major Federal Program

We have audited Clovis Unified School District’s (the District) compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the District’s major federal programs for the year ended June 30, 2023. The District’s major federal programs are identified in the summary of auditor’s results section of the accompanying Schedule of Findings and Questioned Costs.

In our opinion, the District complied, in all material respects, with the 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, 2023.

Basis for Opinion on Each Major Federal Program

We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards); 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). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.

We are required to be independent of the District and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the District’s compliance with the compliance requirements referred to above.

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6051 N. Fresno St., Ste. 101 | Fresno, CA 93710-5280 | T 559.248.0871 | F 559.248.0875 | EOE

Responsibilities of Management for Compliance

Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the District’s federal programs.

Auditor’s Responsibilities for the Audit of Compliance

Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the District’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the District’s compliance with the requirements of each major federal program as a whole.

In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we:

 Exercise professional judgment and maintain professional skepticism throughout the audit.
 Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the District’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.
 Obtain an understanding of the District’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances 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 the District’s internal control over compliance. Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.

Report on 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

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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 Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified.

Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

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.

Fresno, California December 14, 2023

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Independent Auditor’s Report on State Compliance

To the Governing Board Clovis Unified School District Clovis, California

Report on Compliance

Opinion on State Compliance

We have audited Clovis Unified School District’s (the District) compliance with the requirements specified in the 2022‐2023 Guide for Annual Audits of K‐12 Local Education Agencies and State Compliance Reporting, applicable to the District’s state program requirements identified below for the year ended June 30, 2023.

In our opinion, the District complied, in all material respects, with the compliance requirements referred to above that are applicable to the laws and regulations of the state programs noted in the table below for the year ended June 30, 2023.

Basis for Opinion

We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS), the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States (Government Auditing Standards), and the 2022‐2023 Guide for Annual Audits of K‐12 Local Education Agencies and State Compliance Reporting. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.

We are required to be independent of the District and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Our audit does not provide a legal determination of the District’s compliance with the compliance requirements referred to above.

Responsibilities of Management for Compliance

Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the District’s state programs.

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6051 N. Fresno St., Ste. 101 | Fresno, CA 93710-5280 | T 559.248.0871 | F 559.248.0875 | EOE

Auditor’s Responsibilities for the Audit of Compliance

Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the District’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the 2022‐2023 Guide for Annual Audits of K‐12 Local Education Agencies and State Compliance Reporting will always detect a material noncompliance when it exists. The risk of not detecting a material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the District’s compliance with the requirements of the state programs as a whole.

In performing an audit in accordance with GAAS, Government Auditing Standards, and the 2022‐2023 Guide for Annual Audits of K‐12 Local Education Agencies and State Compliance Reporting, we:

	Exercise professional judgment and maintain professional skepticism throughout the audit.

	 Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the District’s compliance with the compliance requirements referred to above and performing such other procedures as we consider necessary in the circumstances.

	Obtain an understanding of the District’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the 2022‐2023 Guide for Annual Audits of K‐12 Local Education Agencies and State Compliance Reporting, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal controls over compliance. Accordingly, we express no such opinion; and

	 Select and test transactions and records to determine the District’s compliance with the state laws and regulations applicable to the following items:

	2022‐2023 K‐12 Audit Guide Procedures	

Local Education Agencies Other Than Charter Schools Attendance
Teacher Certification and Misassignments Kindergarten Continuance
Independent Study Continuation Education Instructional Time Instructional Materials
Ratios of Administrative Employees to Teachers

Procedures
	Performed	

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

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2022‐2023 K‐12 Audit Guide Procedures

Classroom Teacher Salaries Early Retirement Incentive Gann Limit Calculation
School Accountability Report Card Juvenile Court Schools
Middle or Early College High Schools K‐3 Grade Span Adjustment Transportation Maintenance of Effort
Apprenticeship: Related and Supplemental Instruction Comprehensive School Safety Plan
District of Choice
Home to School Transportation Reimbursement Independent Study Certification for ADA Loss Mitigation

School Districts, County Offices of Education, and Charter Schools California Clean Energy Jobs Act
After/Before School Education and Safety Program
Proper Expenditure of Education Protection Account Funds Unduplicated Local Control Funding Formula Pupil Counts Local Control and Accountability Plan
Independent Study ‐ Course Based Immunizations
Educator Effectiveness
Expanded Learning Opportunities Grant (ELO‐G) Career Technical Education Incentive Grant Transitional Kindergarten

Charter Schools Attendance
Mode of Instruction
Nonclassroom‐Based Instruction/Independent Study Determination of Funding for Nonclassroom‐Based Instruction Annual Instructional Minutes ‐ Classroom Based
Charter School Facility Grant Program

Procedures
	Performed	

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

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

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

We did not perform Independent Study attendance procedures because the ADA earned from the program is not below the threshold that required the program to be tested.

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 Juvenile Court Schools procedures because the program is not offered by the District.

We did not perform Middle or Early College High Schools procedures because the program is not offered by the District.

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

The District did not elect to operate as a school district of choice; therefore, we did not perform procedures related to District of Choice.

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

The District does not offer a Before School Education and Safety Program; therefore, we did not perform procedures related to the Before School Education and Safety Program.

The District does not offer an Independent Study ‐ Course Based program; therefore, we did not perform any procedures related to the Independent Study ‐ Course Based Program.

The District was not listed on the immunization assessment reports; therefore, we did not perform any related procedures.

We did not perform procedures for the Charter Schools Mode of Instruction nor Annual Instruction Minutes Classroom‐Based because the District's charter school is entirely nonclassroom‐based.

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

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identify during the audit.

Report on 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 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 a material noncompliance with a compliance requirement 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 that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention from those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified.

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Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

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 2022‐2023 Guide for Annual Audits of K‐12 Local Education Agencies and State Compliance Reporting. Accordingly, this report is not suitable for any other purpose.

Fresno, California December 14, 2023

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Schedule of Findings and Questioned Costs June 30, 2023
Clovis Unified School District

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Clovis Unified School District Summary of Auditor’s Results
Year Ended June 30, 2023

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

Special Education Cluster
Supporting Effective Instruction State Grants ‐ Teacher Quality
COVID‐19, Elementary and Secondary School Emergency Relief Fund II (ESSER II)
COVID‐19, Expanded Learning Opportunities (ELO) Grant: ESSER II: State Reserve
COVID‐19, Expanded Learning Opportunities (ELO) Grant GEER II
COVID‐19, Elementary and Secondary School Emergency Relief Fund III (ESSER III)
COVID‐19, Expanded Learning Opportunities (ELO) Grant: ESSER III: State Reserve, Emergency Needs
COVID‐19, Elementary and Secondary School Emergency Relief Fund III (ESSER III): Learning Loss
COVID‐19, Expanded Learning Opportunities (ELO) Grant: ESSER III: State Reserve, Learning Loss
COVID‐19, American Rescue Plan ‐ Homeless Children and Youth II (ARP HYC II)

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

Auditee qualified as low‐risk auditee?

Unmodified

No

None Reported

No

No

None Reported

Unmodified

No

Federal Financial Assistance
	Listing Number	

84.027, 84.027A, 84.173, 84.173A

84.367

84.425D

84.425D

84.425C

84.425U

84.425U

84.425U

84.425U

84.425W

$ 1,852,039

No

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Clovis Unified School District Summary of Auditor’s Results
Year Ended June 30, 2023

State Compliance

Internal control over state compliance programs Material weaknesses identified
Significant deficiencies identified not considered to be material weaknesses

Type of auditor’s report issued on compliance for programs

No

None Reported

Unmodified

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Clovis Unified School District Financial Statement Findings
Year Ended June 30, 2023

None reported.

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Clovis Unified School District Federal Awards Findings and Questioned Costs
Year Ended June 30, 2023

None reported.

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Clovis Unified School District State Compliance Findings and Questioned Costs
Year Ended June 30, 2023

None reported.

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Clovis Unified School District Summary Schedule of Prior Audit Findings Year Ended June 30, 2023

There were no audit findings reported in the prior year’s Schedule of Findings and Questioned Costs.

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