Annual Financial Statements June 30, 2019
Clovis Unified School District

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CLOVIS UNIFIED SCHOOL DISTRICT

TABLE OF CONTENTS JUNE 30, 2019

FINANCIAL SECTION
Independent Auditor's Report	2 Management's Discussion and Analysis	5 Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Position                                                                                                                      15 Statement of Activities                                                                                                                           16
Fund Financial Statements
Governmental Funds - Balance Sheet	17 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position	18 Governmental Funds - Statement of Revenues, Expenditures, and Changes in
Fund Balances	20 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and
Changes in Fund Balances to the Statement of Activities                                                                    21 Proprietary Funds - Statement of Net Position                                                                                      23 Proprietary Funds - Statement of Revenues, Expenses, and Changes in Fund Net Position                 24 Proprietary Funds - Statement of Cash Flows                                                                                       25 Fiduciary Funds - Statement of Net Position                                                                                         26 Notes to Financial Statements                                                                                                                     27

REQUIRED SUPPLEMENTARY INFORMATION
General Fund - Budgetary Comparison Schedule	78 Schedule of Changes in the District's Total OPEB Liability and Related Ratios	79 Schedule of the District's Proportionate Share of the Net OPEB Liability - MPP Program	80 Schedule of the District's Proportionate Share of the Net Pension Liability	81 Schedule of District Contributions	82 Note to Required Supplementary Information	83

SUPPLEMENTARY INFORMATION
Schedule of Expenditures of Federal Awards	86 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 Statements - Non-Major Governmental Funds
Combining Balance Sheet                                                                                                                         94 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances                                96
Combining Statements - Agency Funds
Combining Balance Sheet	98 Combining Statement of Assets and Liabilities - Student Body Funds	99 Combining Statement of Changes in Assets and Liabilities for
High School and Intermediate School Student Body Funds	100 Combining Statement of Changes in Assets and Liabilities - Student Body Funds
High Schools	101

CLOVIS UNIFIED SCHOOL DISTRICT

TABLE OF CONTENTS JUNE 30, 2019

SUPPLEMENTARY INFORMATION, Continued Combining Statements - Agency Funds, Continued
Combining Statement of Changes in Assets and Liabilities - Student Body Funds
Intermediate Schools	104 Combining Statement of Changes in Assets and Liabilities - Student Body Funds
Elementary Schools                                                                                                                                106 Note to Supplementary Information                                                                                                              107

INDEPENDENT AUDITOR'S REPORTS
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	110 Report on Compliance for Each Major Program and Report on Internal Control Over
Compliance Required by the Uniform Guidance                                                                                         112 Report on State Compliance                                                                                                                          114

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Summary of Auditor's Results	118 Financial Statement Findings	119 Federal Awards Findings and Questioned Costs	120 State Awards Findings and Questioned Costs	121 Summary Schedule of Prior Audit Findings	122

FINANCIAL SECTION

1

INDEPENDENT AUDITOR'S REPORT

Governing Board
Clovis Unified School District Clovis, California

Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Clovis Unified School District (the District) as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise the District's basic financial statements as listed in the table of contents.

Management's Responsibility for the Financial Statements

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

Auditor's Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the 2018-2019 Guide for Annual Audits of K-12 Local Education Agencies and State Compliance Reporting, issued by the California Education Audit Appeals Panel as regulations. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

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Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Clovis Unified School District, as of June 30, 2019, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management's discussion and analysis on pages 5 through 14, budgetary comparison schedule on page 78, schedule of changes in the District's total OPEB liability and related ratios on page 79, schedule of the District's proportionate share of the net OPEB liability - MPP program on page 80, schedule of the District's proportionate share of the net pension liability on page 81, and the schedule of District contributions on page 82, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Clovis Unified School District's basic financial statements. The accompanying supplementary information such as the combining and individual non-major fund financial statements and Schedule of Expenditures of Federal Awards, as required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the other supplementary information as listed in the table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The accompanying supplementary 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. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the accompanying supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

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Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated December 4, 2019, on our consideration of the Clovis Unified School District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of Clovis Unified School District's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Clovis Unified School District's internal control over financial reporting and compliance.

Fresno, California December 4, 2019

4

CLOVIS UNIFIED SCHOOL DISTRICT Management's Discussion and Analysis June 30, 2019

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, 2019, with comparative information for the fiscal year ending June 30, 2018.

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 statements are fund financial statements that focus on individual parts of the District, reporting the District's operations in more detail than the government-wide statements.
	The governmental funds statements tell how basic services like regular and special education were financed in the short term as well as what remains for future spending.
	Fiduciary funds statements provide information about the financial relationships in which the District acts solely as a trustee or agent for the benefit of others to whom the resources belong.

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, 2019

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

Fund Statements

Type of Statements	Government-wide	Governmental Funds	Fiduciary Funds

Scope

Required financial statements

Accounting basis and measurement focus

Type of asset/liability information

Type of inflow/outflow information

Entire District, except fiduciary activities

•Statement of net position

•Statement of activities

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

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

•Balance sheet

•Statement of revenues, expenditures & changes in fund balances

•Reconciliation to government-wide financial statements

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

Instances in which the District administers resources on behalf of someone else, such as student body activities.

•Statement of fiduciary net position

•Statement of changes in fiduciary net position

Accrual accounting and economic resources focus

All assets and liabilities, both short-term and long-term; standard funds do not currently contain nonfinancial assets, though they can

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

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CLOVIS UNIFIED SCHOOL DISTRICT

MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2019

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.

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 three 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, 2019

	Fiduciary funds - The District is the trustee, or fiduciary, for assets that belong to others, such as the student activities funds. The District is responsible for ensuring that the assets reported in these funds are used only for their intended purposes and by those to whom the assets belong. All of the District's fiduciary activities are reported in a separate statement of fiduciary net position. We exclude these activities from the government-wide financial statements because the District cannot use these assets to finance its operations.

FINANCIAL ANALYSIS OF THE DISTRICT AS A WHOLE

Net Position: The District's combined net position was $2.7 million on June 30, 2019, increasing by $6.3 million (175 percent). (See Table A-1.)

Table A-1

(Amounts in millions)	Governmental Activities	Percentage

Assets
Current and Other Assets Capital Assets
Total Assets
Deferred Outflows of Resources Liabilities
Current Liabilities Long-Term Obligations Net Pension Liability
Total Liabilities Deferred Inflows of Resources Net Position
Net investment in capital assets Restricted
Unrestricted
Total Net Position

2019

$	 303.8	$ 942.4
1,246.2 167.0

73.0 844.2 468.1 1,385.3 25.2

559.7 76.1
(633.1)
$	2.7	$

2018

277.8 933.6 1,211.4 141.5

71.3 818.6 443.0 1,332.9 23.6

447.1 64.6
(515.3) (3.6)

Change

9.36% 0.94% 2.87% 18.02%

2.38% 3.13% 5.67% 3.93% 6.78%

25.18% 17.80% -22.86%
175.00%

Changes in Net Position: The District's total governmental revenues were $613.7 million (see Table A-2). Property taxes and state aid formula accounted for most of the District's revenue, with federal and state aid contributing about $317.4 million and property taxes contributing about $121.8 million. Another $98.1 million came from categorical programs, and the remainder came from fees charged for services of $12.7 million and miscellaneous sources of $63.7 million including $40.1 million in developer fees.

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CLOVIS UNIFIED SCHOOL DISTRICT

MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2019

The total cost of all governmental programs and services was $607.4 million (see Table A-2). The District's expenses are predominantly related to educating and caring for students (67 percent). The purely administrative activities of the District accounted for just 4 percent of total costs. Plant services was $56.7 million, accounting for nine percent of the District's expenses. Revenues surpassed expenses, increasing net position by $6.3 million over last year predominately due to the other post-employment expenses recognized from the change in obligations balance from the prior year and changes in the net pension obligation and related deferred outflows and inflows of each.

Table A-2

(Amounts in millions)	Governmental Activities	Percentage

Revenues

General revenues:

Federal and state aid not restricted Property taxes
Other

Program Revenues: Charges for services
Operating grants and contributions Total Revenues
Expenses Instruction Pupil services Administration Plant services
All other services

Total Expenses

Change in Net Position

2019	2018

$             317.4        $             291.6 121.8                      115.9
63.7	43.4

12.7                        10.5 98.1                        88.6 613.7                      550.0

409.2                      389.1 76.4                        70.2 25.7                        24.8 56.7                        56.8 39.4                        40.8 607.4                      581.7

$	6.3	$	(31.7)

Change

8.85% 5.09% 46.77%

20.95% 10.72% 11.58%

5.17% 8.83% 3.63% -0.18% -3.43% 4.42%

119.87%

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CLOVIS UNIFIED SCHOOL DISTRICT

MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2019

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 six major District activities: instruction, student transportation services, all other pupil services, food services, administration, and plant services. 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

Instruction
Student transportation All other pupil services Food services Administration
Plant services All other services
Total

Total Cost of Services 2019                   2018
$	409.2	$	389.1 12.7                    11.7 48.1                    43.1 15.6                    15.4 25.7                    24.8 56.7                    56.8 39.4                    40.8
$	607.4	$	581.7

Net Cost of Services 2019                   2018
$	335.6	$	326.4 12.4                    11.7 40.1                    36.0
(0.1)	0.6 23.6                    19.1 53.4                    54.9 31.6                    34.0
$	496.6	$	482.7

	The net cost of governmental activities this year was $496.6 million.
	Some of the costs were paid by the users of the District's programs ($12.7 million).
	The federal and state governments subsidized certain programs with operating grants and contributions ($98.1 million).
	Most of the District's costs, $439.2 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, 2019

THE DISTRICT'S FUNDS

As the District completed this year, our governmental funds reported a combined fund balance of $211.1 million which is an increase of $25.2 million from last year (Table A-4).

Table A-4

(Amounts in millions)

General Charter School
Adult Education Child Development Cafeteria
Deferred Maintenance Building
Capital Facilities County School Facilities
Special Reserve Capital Outlay Bond Interest and Redemption
Central Valley School Districts Financing Corporation Total

June 30, 2019 $            115.4 5.2
4.6 2.8 8.2 0.1 7.5 15.0 9.1 3.1 39.0 1.1
$	211.1

Balance June 30, 2018 $	94.4
3.8 4.8 2.4 7.7 0.3 12.1 17.3 1.5 4.3 36.3 1.0
$	185.9

Variance $	21.0
1.4 (0.2) 0.4 0.5 (0.2) (4.6) (2.3) 7.6 (1.2) 2.7 0.1
$	25.2

The primary reasons for the changes are:
a. The fund balance in the General Fund increased $21.0 million to $115.4 million. The net increase is due to an overall increase in revenues; one-time and ongoing. One-time revenues were not allocated to any expenditures.
b. The special revenue funds reported a net increase of $1.9 million with minimal changes across all funds except the Charter School Fund which increased by $1.4 million.
c. The capital projects funds showed a decrease of $0.5 million. This overall decrease is due to ongoing construction/modernization projects. The majority of these costs were paid for utilizing bond proceeds held and spent within the Building Fund. The County School Facilities Fund reflected an increase of $7.6 million due to the overdue receipt of state construction funds.
d. The Bond Interest and Redemption Fund reported an increase of $2.7 million due to property tax collections in excess of bond principal and interest payments.

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CLOVIS UNIFIED SCHOOL DISTRICT

MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2019

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.
	One-time funds to pay down the mandate claim reimbursements owed to the District.

	GASB Statement No. 68 requires the District to recognize the State's share of the District's unfunded CalSTRS liability. This resulted in a revenue and expenditure adjustment of $1.8 million.
	The Board approved a three percent salary increase for all District employees.

	The Adopted Budget's revenues over expenditures resulted in the District anticipating a surplus of $14.1 million. The Adopted Budget was structured in such a way that the District could manage any
changes from the State.	The LCFF was fully funded as of the 2018-19 fiscal year. Even though District ADA growth was lower than projected at Adopted Budget, the LCFF entitlement increased by $26.6 million. The projected ADA growth decreased from 304 at Adopted Budget to an actual P-2 ADA growth of 166. Actual revenues to expenditures resulted in a surplus of $21.1 million, however $2.0 million of the fund balance is non-spendable, $3.3 million is restricted for restricted programs and $17.4 million is assigned for local carryover, site and department carryover, student computer refresh, and LCAP Supplemental programs.
	The LCFF was fully funded as of the 2018-19 fiscal year. Even though ADA growth was lower than projected, the LCFF entitlement increased by $26.6 million.

CAPITAL ASSET AND DEBT ADMINISTRATION

Capital Assets

By June 30, 2019, the District had invested $942.4 million in a broad range of capital assets, including school buildings, athletic facilities, computer and audio visual equipment, and administrative offices. (See Table A-5.) This amount represents a net increase of $8.8 million or 0.9 percent over last year. Total depreciation expense for the year was $30.6 million.

Table A-5

Land
Land improvements Buildings and improvements Equipment
Construction in progress Total

Governmental Activities 2019                         2018
$              101.2        $                90.6 44.1                          47.8
737.8	724.0 37.8                          37.2 21.5                          34.0
$	942.4	$	933.6

Percentage Change
11.70% -7.74% 1.91% 1.61%
-36.76% 0.94%

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CLOVIS UNIFIED SCHOOL DISTRICT

MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2019

The District has work in progress related to modernization projects at multiple district sites and well as new construction.

The District received $16.8 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. In 2019-20 the District will commence construction of a new elementary school planned to open in August 2020. The new site will be funded with Developer Fee and bond revenues. The project to cost $41 million in its entirety.

Long-Term Obligations

At year-end the District had $844.2 million in long-term obligations outstanding discussed below. This is an increase of 3.1 percent from last year, as shown in Table A-6.

Table A-6

General obligation bonds Certificates of participation Child development portables Compensated absences Capital leases
Other postemployment benefits Total

Governmental Activities 2019	2018
$	476.5	$	491.9 3.1                                4.6 0.6                                0.4 2.9                                2.7 1.6                                1.6
359.5	317.4 $	844.2        $	818.6

Percentage Change
-3.13% -32.61% 50.00% 7.41% 0.00% 13.26% 3.13%

The District's S&P bond rating as of the most recent bond issuance was "AA". In addition, the District's certificates of participation S&P rating at the time of their last issuance was "AA".

The District also has recognized a deferred outflow of resources (asset) of $26.5 million related to it's other postemployment benefits which helps to offset the obligations impact on the total net position of the District.

Net Pension Liability

At year-end, the District has a net pension liability of $468.1 million versus $443.0 million last year, an increase of $25.1 million, or 5.7 percent. The District also reported Deferred Outflows from pension activities of
$139.4 million, and Deferred Inflows from pension activities of $23.3 million.

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CLOVIS UNIFIED SCHOOL DISTRICT

MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2019

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 79% of the District's General Fund revenues. An economic downturn for the State could have a dramatic impact to the District's financial stability. As a safeguard, the District's Board increased the minimum reserve levels from 6% to 10% during the 2017-2018 fiscal year.
	The LCFF attempts to fund students based on their needs related to household income, English language learner, homeless or foster youth. This portion of a district's student population is referred to as the unduplicated pupil percentage (UPP). Clovis Unified's UPP averages 42-45 percent, making the District eligible for the LCFF Base and Supplemental Grants only; the District is not eligible for the Concentration Grant. The District receives the least amount of funding per ADA in Fresno County due to its low UPP.
	Since the inception of the LCFF, the State has been closing the funding gap of the formula to achieve full implementation of the LCFF, or the "target" funding. This has resulted in a significant amount of "new" revenues over the previous five years. The LCFF was fully implemented in the 2018-2019 fiscal year. Unless new legislation is passed to increase the base grant of the LCFF, the District can only count on COLA beyond the 2018-2019 fiscal year. COLA only will not provide enough new revenues to cover step/column, CalSTRS/CalPERS increases, minimum wage, and increasing health care costs.
	 Enrollment growth and student attendance is key to the District's financial projections. The District has consistently seen growth over the years and anticipates this trend to continue.
	 The State continues to allocate one-time discretionary funds to the District. Fiscal year 2018-2019 was be the fourth consecutive year of one-time funds allocated by the State. This method of allocating funds makes it difficult for the District to make ongoing decisions.
	The Clovis Unified population of students with disabilities has grown an average of 4.8% annually over the previous five years, compared to district-wide enrollment growth average of 1.2%.
	The state and federal government have never fully funded special education. The state has acknowledged the increasing population of students with disabilities by including additional funds for early intervention and to equalize the AB 602 formula in the 2019-20 fiscal year. Due to the uncertainty of the state economy, district advocates strongly recommend treating the projected revenue as one-time revenues.

CONTACTING THE DISTRICT'S FINANCIAL MANAGEMENT

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

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CLOVIS UNIFIED SCHOOL DISTRICT

STATEMENT OF NET POSITION JUNE 30, 2019

Governmental

ASSETS

Deposits and investments Receivables
Prepaid expenses Stores inventories
Nondepreciable capital assets

Activities

$      282,076,863 19,376,041 411,400 1,924,666
122,720,962

Capital assets being depreciated Accumulated depreciation
Total Assets

DEFERRED OUTFLOWS OF RESOURCES Deferred charge on refunding
Deferred outflows of resources related to other post-employment benefits Deferred outflows of resources related to pensions
Total Deferred Outflows of Resources

LIABILITIES Accounts payable Unearned revenue
Claims liability, workers compensation, disability, and health and welfare Long-term obligations:
Current portion of long-term obligations Noncurrent portion of long-term obligations
Total Long-Term Obligations Aggregate net pension liability
Total Liabilities

DEFERRED INFLOWS OF RESOURCES Deferred charge on refunding
Deferred inflows of resources related to pensions Total Deferred Inflows of Resources

NET POSITION

Net investment in capital assets Restricted for:
Debt service Capital projects
Educational programs Other activities
Unrestricted

1,212,951,217 (393,237,223)
1,246,223,926

1,066,646 26,532,515 139,442,024 167,041,185

39,203,239 912,274 32,895,320

31,907,890 812,260,582 844,168,472 468,127,821 1,385,307,126

1,919,691 23,327,155 25,246,846

559,676,030

40,113,568 24,081,293 3,765,725 8,153,167
(633,078,644)

Total Net Position	$	2,711,139

The accompanying notes are an integral part of these financial statements.

15

CLOVIS UNIFIED SCHOOL DISTRICT

STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2019

Net (Expenses) Revenues and
Program Revenues	Changes in

Functions/Programs

Governmental Activities:

Charges for Services and
Expenses	Sales

Operating Grants and
Contributions

Net Position Governmental
Activities

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 Community services Enterprise services
Interest on long-term obligations Other outgo
Total Governmental Activities

$ 340,456,159

25,016,013

8,842,912 34,853,008

12,714,797 15,550,679 48,211,705

4,978,579 20,687,263 56,662,439 12,624,649 770,621 28,117 25,069,713 953,815
$ 607,420,469

$	12,426

2,213

--

-4,086,808 27,202

-160,782
1,865,610 ----
6,578,038

$ 12,733,079

$ 61,736,623

9,413,290

424,999 1,990,152

335,634 11,613,719 8,119,422

127,438 1,787,920 1,446,730 178,699
-12,563 -
872,316

$ 98,059,505

$ (278,707,110)

(15,600,510)

(8,417,913) (32,862,856)

(12,379,163) 149,848
(40,065,081)

(4,851,141) (18,738,561) (53,350,099) (12,445,950) (770,621) (15,554) (25,069,713)
6,496,539

(496,627,885)

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
Mitigation and developer fee revenue Miscellaneous
Subtotal, General Revenues Change in Net Position
Net Position - Beginning

Net Position - Ending

82,123,016 39,220,914 481,478

317,350,812 3,913,436 1,345,879 17,468,688 41,047,620 502,951,843 6,323,958
(3,612,819)

$	2,711,139

The accompanying notes are an integral part of these financial statements.

16

CLOVIS UNIFIED SCHOOL DISTRICT

GOVERNMENTAL FUNDS BALANCE SHEET
JUNE 30, 2019

General Fund
ASSETS

Bond Interest and Redemption
Fund

Non-Major Governmental
Funds

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

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 Total Liabilities and
Fund Balances

$      139,248,236 14,840,106
-155,000
1,653,039 $	155,896,381

$        33,779,726 5,779,768 912,274 40,471,768

1,952,039 3,307,015 -17,443,755 92,721,804
115,424,613

$	155,896,381

$	39,015,301 ----
$	39,015,301

$	 ----

-39,015,301 -
--
39,015,301

$	39,015,301

$        55,317,543 3,210,615 1,013,546 256,400
271,627 $	60,069,731

$          2,853,362 634,866
-3,488,228

531,527 41,045,597 4,580,114 10,424,265 -56,581,503

$	60,069,731

The accompanying notes are an integral part of these financial statements.

17

Total Governmental Funds

$      233,581,080 18,050,721 1,013,546 411,400 1,924,666
$	254,981,413

$        36,633,088 6,414,634 912,274 43,959,996

2,483,566 83,367,913 4,580,114 27,868,020 92,721,804 211,021,417

$	254,981,413

17

CLOVIS UNIFIED SCHOOL DISTRICT

RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION
JUNE 30, 2019

Total Fund Balance - Governmental Funds
Amounts Reported for Governmental Activities in the Statement of Net Position are Different Because:

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

Deferred charges on refunding (the difference between the reacquisition price and net carrying amount of refunded debt) are capitalized and amortized over the remaining life of the new or old debt (whichever is greater) and are included with governmental activities. The District has recognized both deferred outflows and inflows the net of which are:

Deferred outflows of resources related to OPEB represent a consumption of net position in a future period and is not reported in the District's funds. Deferred outflows of resources related to OPEB totaled:
Deferred outflows of resources related to pensions represent a consumption of net position in a future period and is not reported in the District's funds. Deferred outflows of resources related to pensions at year-end consist of:
Pension contributions subsequent to measurement date Net change in proportionate share of net pension liability
Difference 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

Total Deferred Outflows of Resources Related to Pensions

Deferred inflows of resources related to pensions represent an acquisition of net position that applies to a future period and is not reported in the District's funds. Deferred inflows of resources related to pensions at year-end consist of:
Net change in proportionate share of net pension liability Difference between projected and actual earnings on pension
plan investments

Differences between expected and actual experience in the measurement of the total pension liability
Total Deferred Inflows of Resources Related to Pensions

$ 1,335,672,179 (393,237,223)

45,837,416 17,161,737

1,226,942

10,794,108 64,421,821

(6,434,297)

(12,265,864)

(4,626,994)

$ 211,021,417

942,434,956

(853,045)

26,532,515

139,442,024

(23,327,155)

The accompanying notes are an integral part of these financial statements.

18

CLOVIS UNIFIED SCHOOL DISTRICT

RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION, Continued
JUNE 30, 2019

The net pension liability is not due and payable in the current period, and is not reported as a liability in the funds.
Long-term obligations, including bonds payable, are not due and payable in the current period and, therefore, are not reported as liabilities in the funds.
General obligation bonds, net of unamortized premiums and discounts Certificates of participation
Compensated absences Capital leases
Child development portables

Net other postemployment benefits, excluding Self Insurance Fund portion
In addition, the District has issued 'capital appreciation' general obligation bonds. The accretion of interest unmatured on
the general obligation bonds to date is:

Total Long-Term Obligations

$ 384,954,310 3,073,005 2,913,852 1,573,549 630,000

339,745,442

91,521,594

$ (468,127,821)

(824,411,752)

Total Net Position - Governmental Activities	$	2,711,139

The accompanying notes are an integral part of these financial statements.

19

CLOVIS UNIFIED SCHOOL DISTRICT

GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2019

General Fund
REVENUES

Bond Interest and Redemption
Fund

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 Enterprise services
Facility acquisition and construction Debt service
Principal

Interest and other

Total Expenditures

Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses)
Transfers in

Proceeds from capital leases Proceeds from bond issuances Transfers out
Net Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES
Fund Balance - Beginning Fund Balance - Ending

$	377,019,505	$ 20,288,418 85,436,107 20,020,899
502,764,929

281,774,471

21,343,157 8,204,449 28,795,430

13,471,976 262,839 39,843,130

4,852,522 17,419,570 48,602,958 9,525,660 953,815 12,563 932,050

1,552,516 33,724 477,580,830 25,184,099

2,229,339 1,500,000 -
(7,854,336) (4,124,997)
21,059,102

94,365,511
$	115,424,613	$

--
345,394 40,115,210 40,460,604

-

---

---

-------

45,074,070 12,859,426 57,933,496 (17,472,892)

--
20,219,191 -20,219,191 2,746,299
36,269,002 39,015,301

The accompanying notes are an integral part of these financial statements.

20

Non-Major Governmental
Funds

Total Governmental
Funds

$	 4,276,820	$ 12,006,885 25,366,809 36,568,130 78,218,644

15,869,845

2,293,901 357,086 2,030,077

-14,962,411 861,887

-1,335,585 6,330,426 -
--
36,584,946 -
1,606,000 256,206 82,488,370
(4,269,726)

19,947,388 --
(14,322,391) 5,624,997 1,355,271
55,226,232
$	56,581,503	$

381,296,325 32,295,303 111,148,310 96,704,239 621,444,177

297,644,316

23,637,058 8,561,535 30,825,507

13,471,976 15,225,250 40,705,017

4,852,522 18,755,155 54,933,384 9,525,660 953,815 12,563 37,516,996

48,232,586 13,149,356 618,002,696 3,441,481

22,176,727 1,500,000 20,219,191
(22,176,727) 21,719,191 25,160,672
185,860,745 211,021,417

20

CLOVIS UNIFIED SCHOOL DISTRICT

RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2019

Total Net Change in Fund Balances - Governmental Funds	$	25,160,672 Amounts Reported for Governmental Activities in the Statement
of Activities are Different Because:

Capital outlays to purchase or build capital assets are reported in governmental funds as expenditures; however, for governmental activities, those costs are shown in the Statement of Net Position and allocated over their estimated useful lives as annual depreciation expenses in the Statement of Activities.
This is the amount by which capital outlays exceed depreciation in the period.

Capital outlays Depreciation expense
Net Expense Adjustment

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

Some of the capital assets acquired this year were financed with capital leases. The amount financed by the leases is reported in the governmental funds as a source of financing. On the other hand, the capital leases are not revenues in the Statement of Activities, but rather constitute long-term obligations in the Statement of Net Position.

Deferred amounts on refunding (the difference between the reaquisition price of the net carrying amount of the refunded debt) are capitalized and amortized over the remaining life of the new or old debt, whichever is shorter. This year, deferred inflows were recognized for this reason totaling:

In the Statement of Activities, 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). Vacation earned was more than the amounts paid by $194,439.

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.

The accompanying notes are an integral part of these financial statements.

$ 40,067,306

(30,580,741)

9,486,565

(612,202)

(1,815,000)

(2,020,727)

(194,439)

(25,494,560)

(16,615,116)

21

CLOVIS UNIFIED SCHOOL DISTRICT

RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
TO THE STATEMENT OF ACTIVITIES, Continued FOR THE YEAR ENDED JUNE 30, 2019

Proceeds received from the sale of bonds is a revenue in the governmental funds, but it increases long-term obligations in the Statement of Net Position and does not affect the Statement of Activities.
In governmental funds, debt issue costs are recognized as expenditures in the period they are incurred and premiums are recognized as revenues. In the government-wide statements, these items are amortized over the life of the debt.

Amortization of debt premium Amortization of debt discounts
Amortization of deferred outflows on refundings Amortization of deferred inflows of refundings
Combined adjustment

Payment of principal on long-term obligations is an expenditure in the governmental funds, but it reduces long-term obligations in the Statement
of Net Position and does not affect the Statement of Activities:

$	898,848 (24,540)
(264,399)

101,036

$	(20,219,191)

710,945

General obligation bonds Certificates of participation Capital lease obligations Child development portables
Combined adjustment

Interest on long-term obligations in the Statement of Activities differs from the amount reported in the governmental funds because interest is recorded as an expenditure in the funds when it is due, and thus requires the use of current financial resources. In the Statement of Activities, however, interest expense is recognized as the interest accrues, regardless of when it is due. The additional interest reported in the Statement of Activities includes additional accumulated interest that was accreted on the District's capital appreciation general obligation bonds.
Change in Net Position of Governmental Activities

45,074,070 1,480,000 1,552,516
126,000

48,232,586

(10,295,575) $	6,323,958

The accompanying notes are an integral part of these financial statements.

22

CLOVIS UNIFIED SCHOOL DISTRICT

PROPRIETARY FUNDS STATEMENT OF NET POSITION JUNE 30, 2019

Internal Service
Self Insurance

ASSETS Current Assets
Deposits and investments Receivables
Due from other funds
Total Assets

Fund

$        48,495,783 1,325,320 5,401,088 55,222,191

LIABILITIES Current Liabilities
Accounts payable
Claim liabilities-Workers Compensation, Disability and Health and Welfare Other postemployment benefits obligation
Total Current Liabilities

2,570,151 32,895,320 19,756,720 55,222,191

NET POSITION

Total Net Position	$	-

The accompanying notes are an integral part of these financial statements.

23

CLOVIS UNIFIED SCHOOL DISTRICT

PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2019

Internal Service
Self Insurance

OPERATING REVENUES Charges to other funds and
miscellaneous revenues

OPERATING EXPENSES Payroll costs
Professional and contract services Supplies and materials
Total Operating Expenses Operating Income/(Loss)
Total Net Position - Beginning

Total Net Position - Ending

Fund

$	70,840,830

304,493 69,950,434 585,903 70,840,830 -
-

$	-

The accompanying notes are an integral part of these financial statements.

24

CLOVIS UNIFIED SCHOOL DISTRICT

PROPRIETARY FUNDS STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2019

Governmental Activities Internal Service Funds Internal Service
Self Insurance

CASH FLOWS FROM OPERATING ACTIVITIES Cash received from operating funds
Fair market value adjustment on investments Cash paid for contracted services
Cash payments for other operating expenses

Net Cash Provided by Operating Activities FINANCING ACTIVITIES
Net Cash Used for Noncapital Financing Activities

CASH FLOWS USED BY CAPITAL AND RELATED FINANCING ACTIVITIES
Net Cash Provided by Capital and Related Financing Activities
CASH FLOWS USED BY INVESTING ACTIVITIES
Net Cash Provided by Investing Activities
Net Increase in Cash and Cash Equivalents Cash and Cash Equivalents - Beginning
Cash and Cash Equivalents - Ending

RECONCILIATION OF OPERATING LOSS TO

NET CASH PROVIDED BY OPERATING ACTIVITIES Operating loss
Changes in assets and liabilities: Receivables
Due from other funds

Accounts payable, claims liability, and other postemployment benefits obligation

NET CASH PROVIDED BY OPERATING ACTIVITIES

Fund

$        66,718,138 1,020,516
(66,582,224) (890,396)
266,034

-

-

-266,034
48,229,749 $	48,495,783

$	-

(534,698) (2,567,478)

3,368,210

$	266,034

The accompanying notes are an integral part of these financial statements.

25

CLOVIS UNIFIED SCHOOL DISTRICT

FIDUCIARY FUNDS STATEMENT OF NET POSITION JUNE 30, 2019

ASSETS

Deposits and investments Receivables
Total Assets

LIABILITIES

Due to student groups

Due to other agencies - Warrant/Pass-Through Fund

Total Liabilities

Agency Funds

$          2,572,959 57,601
$	2,630,560

$          2,296,259 334,301
$	2,630,560

The accompanying notes are an integral part of these financial statements.

26

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Financial Reporting Entity

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

A reporting entity is comprised of the primary government, component units, 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.

Component Units

Component units are legally separate organizations for which the District is financially accountable. Component units may also include organizations that are fiscally dependent on the District, in that the District approves their budget, the issuance of their debt or the levying of their taxes. In addition, component units are other legally separate organizations for which the District is not financially accountable but the nature and significance of the organization's relationship with the District is such that exclusion would cause the District's financial statements to be misleading or incomplete. For financial reporting purposes, the component unit has a financial and operational relationship which meets the reporting entity definition criteria of the Governmental Accounting Standards Board (GASB) Statement No. 14, The Financial Reporting Entity, and thus is included in the financial statements of the District. The component unit, although a legally separate entity, is reported in the financial statements using the blended presentation method as if it were part of the District's operations because the governing board of the component unit is essentially the same as the governing board of the District and because its purpose is to finance the construction of facilities to be used for the direct benefit of the District.

The Central Valley School Districts Financing Corporation's financial activity is presented in the financial statements as the Central Valley School Districts Financing Fund. Certificates of participation issued by the Corporation are included as long-term liabilities in the government-wide financial statements.

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

Basis of Presentation - Fund Accounting

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

27

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

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.

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

Non-Major Governmental Funds

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

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).

28

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

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

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

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

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

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

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

Central Valley School Districts Financing Corporation Fund The Central Valley School Districts Financing Corporation Fund is used to account for the accumulation of resources for the payment of principal and interest on certificates of participation issued by the Central Valley School Districts Financing Corporation.

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.

Fiduciary Funds Fiduciary funds are used to account for assets held in trustee or agent capacity for others that cannot be used to support the District's own programs.

29

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

Agency funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. Such funds have no equity accounts since all assets are due to individuals or entities at some future time. The District's agency fund accounts for student body activities (ASB) and the Warrant/Pass-Through Fund which is used to account for payroll transactions.

Basis of Accounting - Measurement Focus

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

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

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

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

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

30

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

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.

Fiduciary Funds Fiduciary funds are accounted for using the flow of economic resources measurement focus and the accrual basis of accounting. Fiduciary funds are excluded from the government-wide financial statements because they do not represent resources of the District.

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. Generally, available is defined as collectible within 60 days. However, to achieve comparability of reporting among California districts and so as not to distort normal revenue patterns, with specific respect to reimbursement grants and corrections to State-aid apportionments, the California Department of Education has defined available for districts as collectible within one year. The following revenue sources are considered to be both measurable and available at fiscal year-end: State apportionments, interest, certain grants, and other local sources.

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

Unearned Revenue Unearned revenue arises when potential revenue does not meet both the "measurable" and "available" criteria for recognition in the current period or when resources are received by the District prior to the incurrence of qualifying expenditures. In subsequent periods, when both revenue recognition criteria are met, or when the District has a legal claim to the resources, the liability for unearned revenue is removed from the balance sheet and revenue is recognized.

Certain grants received before the eligibility requirements are met are recorded as unearned revenue. On the governmental fund financial statements, receivables that will not be collected within the available period are also recorded as unearned revenue.

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, if measurable, and typically paid within 60 days. Principal and interest on long-term obligations, which have not matured, are recognized when paid in the governmental funds as expenditures. Allocations of costs, such as depreciation and amortization, are not recognized in the governmental funds but are recognized in the entity-wide statements.

31

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

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 held at June 30, 2019, 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 investment pool are determined by the program sponsor.

Prepaid Expenditures (Expenses)

Prepaid expenditures (expenses) represent amounts paid in advance of receiving goods or services. The District has the option of reporting an expenditure in governmental funds for prepaid items either when purchased or during the benefiting period. The District has chosen to report expenditures during the benefiting period.

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 used.

Capital Assets and Depreciation

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

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

32

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

Interfund Balances

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

Compensated Absences

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

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

Accounts Payable and Long-Term Obligations

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

Deferred Outflows/Inflows of Resources

In addition to assets, the Statement of Net Position also reports deferred outflows of resources. This separate financial statement element represents a consumption of net position that applies to a future period and so will not be recognized as an expense or expenditure until then. The District reports deferred outflows of resources for deferred charges on refunding of debt, for postemployment benefits related items, and for pension 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 and pension related items.

33

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

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.

Postemployment Benefits Other Than Pensions (OPEB)

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

Fund Balances - Governmental Funds

As of June 30, 2019, fund balances of the governmental funds are classified as follows:

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

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

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

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

Unassigned - all other spendable amounts.

34

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

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

In fiscal year 2010-2011, 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 liabilities. 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 $76,113,753 of restricted net position.

Operating Revenues and Expenses

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

Interfund Activity

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

35

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

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.

New Accounting Pronouncements

In January 2017, the GASB issued Statement No. 84, Fiduciary Activities. The objective of this Statement is to improve guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported.

This Statement establishes criteria for identifying fiduciary activities of all State and local governments. The focus of the criteria generally is on (1) whether a government is controlling the assets of the fiduciary activity and (2) the beneficiaries with whom a fiduciary relationship exists. Separate criteria are included to identify fiduciary component units and postemployment benefit arrangements that are fiduciary activities.

The requirements of this Statement are effective for the reporting periods beginning after December 15, 2018. Early implementation is encouraged.

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

The requirements of this Statement are effective for the reporting periods beginning after December 15, 2019. Early implementation is encouraged.

In June 2018, the GASB issued Statement No. 89, Accounting for Interest Cost Incurred Before the End of a Construction Period. The objectives of this Statement are (1) to enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period and (2) to simplify accounting for interest cost incurred before the end of a construction period.

36

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

This Statement establishes accounting requirements for interest cost incurred before the end of a construction period. Such interest cost includes all interest that previously was accounted for in accordance with the requirements of paragraphs 5–22 of Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements, which are superseded by this Statement. This Statement requires that interest cost incurred before the end of a construction period be recognized as an expense in the period in which the cost is incurred for financial statements prepared using the economic resources measurement focus. As a result, interest cost incurred before the end of a construction period will not be included in the historical cost of a capital asset reported in a business-type activity or enterprise fund.

This Statement also reiterates that in financial statements prepared using the current financial resources measurement focus, interest cost incurred before the end of a construction period should be recognized as an expenditure on a basis consistent with governmental fund accounting principles.

The requirements of this Statement are effective for reporting periods beginning after December 15, 2019. Earlier application is encouraged. The requirements of this Statement should be applied prospectively.

In August 2018, the GASB issued Statement 90, Majority Equity Interests – An Amendment of GASB Statements No. 14 and No. 60. The primary objectives of this Statement are to improve the consistency and comparability of reporting a government’s majority equity interest in a legally separate organization and to improve the relevance of financial statement information for certain component units. It defines a majority equity interest and specifies that a majority equity interest in a legally separate organization should be reported as an investment if a government’s holding of the equity interest meets the definition of an investment. A majority equity interest that meets the definition of an investment should be measured using the equity method, unless it is held by a special-purpose government engaged only in fiduciary activities, a fiduciary fund, or an endowment (including permanent and term endowments) or permanent fund. Those governments and funds should measure the majority equity interest at fair value.

For all other holdings of a majority equity interest in a legally separate organization, a government should report the legally separate organization as a component unit, and the government or fund that holds the equity interest should report an asset related to the majority equity interest using the equity method. This Statement establishes that ownership of a majority equity interest in a legally separate organization results in the government being financially accountable for the legally separate organization and, therefore, the government should report that organization as a component unit.

This Statement also requires that a component unit in which a government has a 100 percent equity interest account for its assets, deferred outflows of resources, liabilities, and deferred inflows of resources at acquisition value at the date the government acquired a 100 percent equity interest in the component unit. Transactions presented in flows statements of the component unit in that circumstance should include only transactions that occurred subsequent to the acquisition.

The requirements of this Statement are effective for reporting periods beginning after December 15, 2018. Earlier application is encouraged. The requirements of this Statement should be applied prospectively.

37

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

In May 2019, the GASB issued Statement No. 91, Conduit Debt Obligations. The primary objectives of this Statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This Statement achieves those objectives by clarifying the existing definition of a conduit debt obligation; establishing that a conduit debt obligation is not a liability of the issuer; establishing standards for accounting and financial reporting of additional commitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obligations; and improving required note disclosures.

A conduit debt obligation is defined as a debt instrument having all of the following characteristics:

	There are at least three parties involved: (1) an issuer, (2) a third-party obligor, and (3) a debt holder or a debt trustee.

	The issuer and the third-party obligor are not within the same financial reporting entity.

	The debt obligation is not a parity bond of the issuer, nor is it cross-collateralized with other debt of the issuer.

	The third-party obligor or its agent, not the issuer, ultimately receives the proceeds from the debt issuance.

	The third-party obligor, not the issuer, is primarily obligated for the payment of all amounts associated with the debt obligation (debt service payments).

All conduit debt obligations involve the issuer making a limited commitment. Some issuers extend additional commitments or voluntary commitments to support debt service in the event the third party is, or will be, unable to do so.

An issuer should not recognize a conduit debt obligation as a liability. However, an issuer should recognize a liability associated with an additional commitment or a voluntary commitment to support debt service if certain recognition criteria are met. As long as a conduit debt obligation is outstanding, an issuer that has made an additional commitment should evaluate at least annually whether those criteria are met. An issuer that has made only a limited commitment should evaluate whether those criteria are met when an event occurs that causes the issuer to reevaluate its willingness or ability to support the obligor’s debt service through a voluntary commitment.

This Statement also addresses arrangements—often characterized as leases—that are associated with conduit debt obligations. In those arrangements, capital assets are constructed or acquired with the proceeds of a conduit debt obligation and used by third-party obligors in the course of their activities. Payments from third-party obligors are intended to cover and coincide with debt service payments. During those arrangements, issuers retain the titles to the capital assets. Those titles may or may not pass to the obligors at the end of the arrangements.

Issuers should not report those arrangements as leases, nor should they recognize a liability for the related conduit debt obligations or a receivable for the payments related to those arrangements. In addition, the following provisions apply:

	If the title passes to the third-party obligor at the end of the arrangement, an issuer should not recognize a capital asset.

38

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

	 If the title does not pass to the third-party obligor and the third party has exclusive use of the entire capital asset during the arrangement, the issuer should not recognize a capital asset until the arrangement ends.

	If the title does not pass to the third-party obligor and the third party has exclusive use of only portions of the capital asset during the arrangement, the issuer, at the inception of the arrangement, should recognize the entire capital asset and a deferred inflow of resources. The deferred inflow of resources should be reduced, and an inflow recognized, in a systematic and rational manner over the term of the arrangement.

This Statement requires issuers to disclose general information about their conduit debt obligations, organized by type of commitment, including the aggregate outstanding principal amount of the issuers’ conduit debt obligations and a description of each type of commitment. Issuers that recognize liabilities related to supporting the debt service of conduit debt obligations also should disclose information about the amount recognized and how the liabilities changed during the reporting period.

The requirements of this Statement are effective for the reporting periods beginning after December 15, 2020. Early implementation is encouraged.

NOTE 2 - DEPOSITS AND INVESTMENTS

Summary of Deposits and Investments

Deposits and investments as of June 30, 2019, are classified in the accompanying financial statements as follows:

Governmental activities Fiduciary funds
Total Deposits and Investments

$ 282,076,863 2,572,959
$ 284,649,822

Deposits and investments as of June 30, 2019, consist of the following:

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

$      8,589,859 10,220,455 147,500 918,961

Investments with county treasury
Total Deposits and Investments

264,773,047 $ 284,649,822

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.

39

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

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

General Authorizations

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

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

Maximum Remaining Maturity 5 years 5 years 5 years 5 years 180 days 270 days 5 years 1 year 92 days 5 years N/A N/A
5 years N/A N/A
N/A

Maximum Percentage of Portfolio None None None None 40% 25% 30% None
20% of base 30% 20% 20% 20% None None
None

Maximum Investment in One Issuer None None None None 30% 10% None None None None 10% 10% None None None
None

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 does not have 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.

40

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

Segmented Time Distribution

Information about the sensitivity of the fair values of the District's investments to market interest rate fluctuations is provided by the following schedule that shows the distribution of the District's investments by maturity:

Investment Type County Pool

Fair Value
$ 265,675,334

12 Months or Less
$	-

13 - 36 Months
$ 265,675,334

37 - 60             More Than Months             60 Months
$	-	$	-

Custodial Credit Risk - Deposits

This is the risk that in the event of a bank failure, the District's deposits may not be returned to it. The District does not have a policy for custodial credit risk for deposits. However, the California Government Code requires that a financial institution secure deposits made by State or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110 percent of the total amount deposited by the public agency. California law also allows financial institutions to secure public deposits by pledging first trust deed mortgage notes having a value of 150 percent of the secured public deposits and letters of credit issued by the Federal Home Loan Bank of San Francisco having a value of 105 percent of the secured deposits. As of June 30, 2019, $16,023,218 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 - FAIR VALUE MEASUREMENTS

The District categorizes the fair value measurements of its investments based on the hierarchy established by generally accepted accounting principles. The fair value hierarchy, which has three levels, is based on the valuation inputs used to measure an asset's fair value. The following provides a summary of the hierarchy used to measure fair value:

Level 1 - Quoted prices in active markets for identical assets that the District has the ability to access at the measurement date. Level 1 assets may include debt and equity securities that are traded in an active exchange market and that are highly liquid and are actively traded in over-the-counter markets.

Level 2 - Observable inputs other than Level 1 prices such as quoted prices for similar assets in active markets, quoted prices for identical or similar assets in markets that are not active, or other inputs that are observable, such as interest rates and curves observable at commonly quoted intervals, implied volatilities, and credit spreads. For financial reporting purposes, if an asset has a specified term, a Level 2 input is required to be observable for substantially the full term of the asset.

Level 3 - Unobservable inputs should be developed using the best information available under the circumstances, which might include the District's own data. The District should adjust that data if reasonably available information indicates that other market participants would use different data or certain circumstances specific to the District are not available to other market participants.

41

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

Uncategorized - Investments in the Fresno County Treasury Investment Pool are not measured using the input levels above because the District's transactions are based on a stable net asset value per share. All contributions and redemptions are transacted at $1.00 net asset value per share.

NOTE 4 - RECEIVABLES

Receivables at June 30, 2019, consisted of intergovernmental grants, entitlements, interest and other local sources. All receivables are considered collectible in full.

General Fund
Federal Government

Non-Major Governmental
Funds

Total Governmental
Funds

Internal Service
Fund

Total Governmental
Activities

Warrant/ Pass-Through
Fund

Categorical aid State Government
State grants and

entitlements

$ 7,981,857

2,880,406

$ 1,930,343

828,447

$ 9,912,200	$

3,708,853

-	$ 9,912,200	$	-

-	3,708,853	-

Local Sources Total

3,977,843 $ 14,840,106

451,825 $ 3,210,615

4,429,668 $ 18,050,721

1,325,320 $ 1,325,320

5,754,988                 57,601 19,376,041       $        57,601

42

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

NOTE 5 - CAPITAL ASSETS

Capital asset activity for the fiscal year ended June 30, 2019, was as follows:

Governmental Activities

Capital Assets not being depreciated

Balance

July 1, 2018

Balance

Additions	Deductions	June 30, 2019

Land	$ 90,600,927	$ 10,637,252	$	-	$ 101,238,179

Construction in progress

Total Capital Assets Not Being Depreciated
Capital Assets being depreciated Land improvements Buildings and improvements Furniture and equipment
Total Capital Assets Being Depreciated
Less Accumulated Depreciation Land improvements Buildings and improvements Furniture and equipment
Total Accumulated Depreciation Governmental Activities Capital Assets,

Net

34,022,307

124,623,234

127,374,408 972,421,307 72,855,863

1,172,651,578

79,681,192 248,361,530 35,671,497 363,714,219

$ 933,560,593

37,516,880

48,154,132

1,783,435 35,050,264 5,135,879

41,969,578

4,774,523 21,302,915 4,503,303 30,580,741

$ 59,542,969

50,056,404

50,056,404

1,464,217 93,833 111,889

1,669,939

883,452 63,872 110,413 1,057,737

$ 50,668,606

21,482,783

122,720,962

127,693,626 1,007,377,738 77,879,853

1,212,951,217

83,572,263 269,600,573 40,064,387 393,237,223

$ 942,434,956

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

Governmental Activities Instruction
School site administration All other pupil services Ancillary services Community services
All other general administration Plant services
Total Depreciation Expenses Governmental Activities

$ 18,312,875 1,875,712 4,151,700 2,920,462 770,621 1,261,476 1,287,895
$ 30,580,741

43

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

NOTE 6 - 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, 2019, between major and non-major governmental funds, and internal service funds are as follows:

Interfund Receivables
Major Governmental Fund

Interfund Payables

General
Non-Major Governmental Funds Charter School
Adult Education Child Development Cafeteria
Deferred Maintenance Building
Capital Facilities
Special Reserve Capital Outlay
Total Non-Major Governmental Funds Subtotal All Governmental Funds
Self Insurance Fund
Total All Funds

$	-

521,512 231,097 -
-200,000 20,648 -
40,289 1,013,546 1,013,546 5,401,088
$ 6,414,634

$ 5,779,768

--
147,050 151,751 -
-336,065 -634,866
6,414,634 -
$ 6,414,634

44

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

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, 2019, 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 Capital Outlay Non-Major
Governmental Fund for a district-wide furniture refresh.

The General Fund transferred to the Adult Education Non-Major Governmental Fund the District's Adult Education contribution.
The General Fund transferred to the Special Reserve Capital Outlay Non-Major Governmental Fund for the annual RCA transfer.
The General Fund transferred to the Special Reserve Capital Outlay Non-Major Governmental Fund for safety standards costs.
The Charter School Non-Major Governmental Fund transferred to the Special Reserve Capital Outlay Non-Major Governmental Fund Prop 39 funds.
The Deferred Maintenance Non-Major Governmental Fund transferred to the Building Fund for the Clovis West High School modernization project.
The Capital Facilities Non-Major Governmental Fund transferred to the General Fund a three percent administrative fee.
The Capital Facilities Non-Major Governmental Fund transferred to the County School Facilities Non-Major Governmental Fund for developer fees related to the Shields and Locan area.
The County School Facilities Non-Major Governmental Fund transferred to the Building Non-Major Governmental Fund to balance the fund.
The Special Reserve Capital Outlay Non-Major Governmental Fund transferred solar rebates to the General Fund.
The Special Reserve Capital Outlay Non-Major Governmental Fund transferred to the

Deferred Maintenance Non-Major Governmental Fund for future repairs and

$ 2,800,000 1,732,456

500,000

846,880

275,000

1,700,000

212,963

1,700,000

336,000

8,500,000

180,089

1,893,339

maintenance projects. Total

1,500,000 $ 22,176,727

45

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

NOTE 7 - PREPAID EXPENDITURES (EXPENSES)

Prepaid expenditures (expenses) at June 30, 2019, consist of the following:

Non-Major General	Governmental

Total Governmental

Fund Electronic Student Curriculum Database Subscription	$	155,000

Funds
$	256,400

Activities
$	411,400

NOTE 8 - ACCOUNTS PAYABLE

Accounts payable at June 30, 2019, consisted of the following:

General

Fund

Non-Major Governmental

Funds

Governmental Funds

Total

Internal Service Fund 1

Total Governmental

Activities

Vendor payables	$ 3,579,496	$ 2,853,362	$	6,432,858	$ 2,570,151	$	9,003,009 Local control funding

formula Deferred payroll Accrued payroll
Total

2,166,548 27,690,953 342,729
$ 33,779,726

---
$ 2,853,362

2,166,548 27,690,953 342,729
$ 36,633,088

---
$ 2,570,151

2,166,548 27,690,953 342,729 39,203,239

1 Other post-employment benefits are reflected in the Long-Term Obligations balance.

NOTE 9 - UNEARNED REVENUE

Unearned revenue at June 30, 2019, consists of the following:

Federal financial assistance State categorical aid
Local sources Total

General Fund
$       398,451 497,938 15,885
$	912,274

46

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

NOTE 10 - LONG-TERM OBLIGATIONS

Summary

The changes in the District's long-term obligations during the year consisted of the following:

General Obligation Bonds Bond premium/discounts, net Certificates of Participation Compensated absences - net Capital leases
Child development portables Other postemployment

benefits-not recognized in Self Insurance Fund
Other postemployment benefits-recognized in Self Insurance Fund
Other postemployment benefits-Medicare Premium Payment Program (MPP)
Total

Balance July 1, 2018
$ 481,768,620 10,140,896 4,553,005 2,719,413 1,626,065 441,000

294,028,042

20,743,947

2,569,769 $ 818,590,757

Additions $ 31,005,575
(490,809) -
194,439 1,500,000 315,000

43,336,213

-

-$ 75,860,418

Deductions $ 45,074,070
874,308 1,480,000 -1,552,516 126,000

-

987,227

188,582 $ 50,282,703

Balance June 30, 2019 $ 467,700,125
8,775,779 3,073,005 2,913,852 1,573,549 630,000

337,364,255

19,756,720

2,381,187 $ 844,168,472

Due in One Year
$ 29,460,000 -
1,250,000 -1,071,890 126,000

-

-

-$ 31,907,890

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 Central Valley School Districts Financing Corporation Fund. Payments on the capital leases and child development portables are made from General Fund, Building Fund and Child Development Fund. Payments on compensated absences and other postemployment benefits are made from the fund which the related employee worked.

47

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

Bonded Debt

The outstanding general obligation bonded debt is as follows:

Fiscal Year
Issued Series

Fiscal Year Matured

Interest Rate

Original Issue

Bonds Outstanding July 1, 2018

Interest Accreted/ Issued

Bonds Outstanding
Redeemed	June 30, 2019

Due in One Year

2002       01A        2019              9.0%            $ 49,996,471      $     6,645,000      $                  -      $ 6,645,000      $                    -      $                  -2003       01B        2028          3.6-5.23%             29,000,256           14,537,575                          -           1,415,593           13,121,982           1,360,615 Accreted interest on bonds                                                             17,510,289           1,505,994           1,539,407           17,476,876           1,664,385 2005       04A        2030          3.8-6.15%           119,998,286           49,834,437                          -              888,600           48,945,837                          -Accreted interest on bonds                                                             52,674,032           5,498,932              985,470           57,187,494                          -2006       04B        2031           4.0-5.0%              48,001,060           13,847,060                          -                          -           13,847,060                          -

Accreted interest on bonds	11,078,238	1,211,642	-	12,289,880	-

2012       12R        2022 2013       12A        2038

2014	12B	2039

2.0-5.0% 1.0-5.5%

2.0-6.12%

17,935,000 79,996,801

49,996,579

17,570,000 38,025,000

29,165,547

-           8,895,000 -           1,625,000

-	16,105,000

8,675,000 36,400,000

13,060,547

4,120,000 2,615,000

-

Accreted interest on bonds                                                               1,070,348              254,585                          -             1,324,933                          -2015       12C        2040         3.19-4.52%            64,995,505           57,465,504                          -           1,180,000           56,285,504           1,115,000

Accreted interest on bonds                                                               1,923,544              542,205                          -             2,465,749                          -2016       12D        2041          3.37-5.0%           103,007,034           96,107,034                          -           1,190,000           94,917,034           1,045,000 Accreted interest on bonds                                                               1,900,716              703,583                          -             2,604,299                          -

2017       16R        2022 2017       17R        2036

2.0-5.0% 3.18-5.0%

30,510,000 43,121,677

28,850,000 43,121,677

-           1,740,000 -           2,865,000

27,110,000 40,256,677

14,505,000 545,000

Accreted interest on bonds                                                                  442,619              578,634                          -             1,021,253                          -2018       18R        2039       2.694-4.357%          20,710,000                            -         20,710,000                          -           20,710,000           2,490,000 Total                                                     $ 657,268,669      $ 481,768,620      $ 31,005,575      $ 45,074,070      $ 467,700,125      $ 29,460,000

Debt Service Requirements to Maturity

The annual requirement to amortize the Election of 2001, Series B general obligation bonds payable, outstanding at June 30, 2019, is as follows:

Accreted

Fiscal Year	Obligation

Unaccreted

Interest

Final

Maturity

2020 2021 2022 2023 2024
2025-2028

Total

$      3,025,000 2,953,060 2,875,915 2,802,948 2,736,338 16,205,597
$ 30,598,858

$                      -146,940 299,085 457,052 618,662 7,114,403
$	8,636,142

$      3,025,000 3,100,000 3,175,000 3,260,000 3,355,000 23,320,000
$ 39,235,000

48

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

The annual requirement to amortize the Election of 2004, Series A general obligation bonds payable, outstanding at June 30, 2019, is as follows:

Accreted Fiscal Year	Obligation

Unaccreted Interest

Final Maturity

2021 2022 2023 2024
2025-2029 2030

$ 11,830,874 -
11,993,142 12,054,231 58,794,756 11,460,328

$         599,126 -
1,971,858 2,750,769 26,655,244 9,544,672

$ 12,430,000 -
13,965,000 14,805,000 85,450,000 21,005,000

Total	$ 106,133,331	$ 41,521,669	$ 147,655,000

The annual requirement to amortize the Election of 2004, Series B general obligation bonds payable, outstanding at June 30, 2019, is as follows:

Capital Appreciation Bond portion:

Fiscal Year

Accreted Obligation

Unaccreted Interest

Final Maturity

2027	$	3,525,690 2028                                                                                   3,558,660 2029                                                                                   3,589,334 2030                                                                                   3,619,256 2031                                                                                 11,844,000 Total                                                                           $ 26,136,940

$	 1,364,310 1,621,340 1,905,666 2,195,744 8,156,000
$ 15,243,060

$      4,890,000 5,180,000 5,495,000 5,815,000 20,000,000
$ 41,380,000

The annual requirement to amortize the 2012 Refunding general obligation bonds payable, outstanding at June 30, 2019, is as follows:

Interest to

Fiscal Year 2020 2021 2022 Total

Principal
$      4,120,000 -
4,555,000 $	8,675,000

Maturity
$	290,350 202,950 101,475
$	594,775

Total
$      4,410,350 202,950 4,656,475
$	9,269,775

49

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

The annual requirement to amortize the 2012 Series A general obligation bonds payable, outstanding at June 30, 2019, is as follows:

Current Interest Bond portion:

Interest to

Fiscal Year 2020 2021 2022 2023 2024
2025-2029 2030-2034 2035-2038 Total

Principal
$      2,615,000 -
3,165,000 3,515,000 -
-8,260,000
18,845,000 $ 36,400,000

Maturity
$	1,362,400 1,310,100 1,246,800 1,113,200 1,042,900 5,214,500 4,386,750 2,276,700
$ 17,953,350

Total
$      3,977,400 1,310,100 4,411,800 4,628,200 1,042,900 5,214,500 12,646,750 21,121,700
$ 54,353,350

The annual requirement to amortize the 2012 Series B general obligation bonds payable, outstanding at June 30, 2019, is as follows:

Current Interest Bond portion:

Interest to

Fiscal Year 2020 2021 2022 2023 2024
2025-2029 2030-2034

Principal
$	 -------

Maturity
$         491,500 491,500 491,500 491,500 491,500 2,457,500 2,457,500

Total
$         491,500 491,500 491,500 491,500 491,500 2,457,500 2,457,500

2035-2039 Total

9,830,000 $	9,830,000

998,000 $	8,370,500

10,828,000 $ 18,200,500

Capital Appreciation Bond portion:

Fiscal Year

Accreted Obligation

Unaccreted Interest

Final Maturity

2021 2022-2024
Total

$	1,751,491	$ 2,803,989
$	4,555,480	$

103,509 541,011 644,520

$      1,855,000 3,345,000
$	5,200,000

Total 2012, Series B obligation:	$ 14,385,480

50

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

The annual requirement to amortize the 2012 Series C general obligation bonds payable, outstanding at June 30, 2019, is as follows:

Current Interest Bond portion:

Interest to

Fiscal Year 2020 2021 2022 2023 2024
2025-2029 2030-2034 2035-2039 2040 Total

Principal
$      1,115,000 -
1,125,000 1,305,000 -
-3,555,000
24,545,000 13,025,000
$ 44,670,000

Maturity
$      1,757,000 1,729,125 1,701,000 1,640,250 1,607,625 8,038,126 7,975,913 5,391,500 260,500
$ 30,101,039

Total
$      2,872,000 1,729,125 2,826,000 2,945,250 1,607,625 8,038,126 11,530,913 29,936,500 13,285,500
$ 74,771,039

Capital Appreciation Bond portion:

Fiscal Year

Accreted Obligation

Unaccreted Interest

Final Maturity

2024-2027 2028-2032 2033 Total

$	6,012,768 6,395,879 1,672,606
$ 14,081,253

$	1,297,232 3,629,121 1,317,394
$	6,243,747

$      7,310,000 10,025,000 2,990,000
$ 20,325,000

Total 2012, Series C obligation:	$ 58,751,253

The annual requirement to amortize the 2012 Series D general obligation bonds payable, outstanding at June 30, 2019, is as follows:

Current Interest Bond portion:

Interest to

Fiscal Year 2020 2021 2022 2023 2024
2025-2029 2030-2034 2035-2039 2040-2041

Principal
$      1,045,000 1,575,000 1,030,000 1,325,000 1,590,000 3,355,000 3,090,000 17,340,000 51,185,000

Maturity
$      3,435,875 3,370,375 3,305,250 3,246,375 3,173,500 15,466,375 14,134,750 13,251,949 2,349,500

Total
$      4,480,875 4,945,375 4,335,250 4,571,375 4,763,500 18,821,375 17,224,750 30,591,949 53,534,500

Total	$ 81,535,000	$ 61,733,949	$ 143,268,949

51

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

Capital Appreciation Bond portion:

Fiscal Year

Accreted Obligation

Unaccreted Interest

Final Maturity

2031 2032-2036
2037 Total

$      2,170,700 12,085,119 1,730,514
$ 15,986,333

$      1,329,300 10,789,881 2,074,486
$ 14,193,667

$      3,500,000 22,875,000 3,805,000
$ 30,180,000

Total 2012, Series D obligation:	$ 97,521,333

The annual requirement to amortize the 2016 Refunding general obligation bonds payable, outstanding at June 30, 2019, is as follows:

Current Interest Bond portion:

Interest to

Fiscal Year 2020 2021 2022 Total

Principal
$ 14,505,000 10,055,000 2,550,000
$ 27,110,000

Maturity
$         920,350 378,875 63,750
$	1,362,975

Total
$ 15,425,350 10,433,875 2,613,750
$ 28,472,975

The annual requirement to amortize the 2017 Refunding general obligation bonds payable, outstanding at June 30, 2019, is as follows:

Current Interest Bond portion:

Interest to

Fiscal Year 2020 2021 2022 2023 2024
2025-2029 2030-2034 2035 Total

Principal
$	545,000 640,000 255,000
--
6,215,000 14,325,000 2,605,000
$ 24,585,000

Maturity
$      1,088,825 1,059,200 1,036,825 1,030,450 1,030,450 4,376,625 1,867,924 39,075
$ 11,529,374

Total
$      1,633,825 1,699,200 1,291,825 1,030,450 1,030,450 10,591,625 16,192,924 2,644,075
$ 36,114,374

52

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

Capital Appreciation Bond portion:

Fiscal Year

Accreted Obligation

Unaccreted Interest

Final Maturity

2033	$	4,234,734 2034                                                                                   4,208,562 2035                                                                                   4,220,874 2036                                                                                   4,028,760 Total                                                                           $ 16,692,930

$	2,355,266 2,661,438 3,009,126 3,191,240
$ 11,217,070

$	6,590,000 6,870,000 7,230,000 7,220,000
$ 27,910,000

Total 2012, Series D obligation:	$ 41,277,930

The annual requirement to amortize the 2018 Refunding general obligation bonds payable, outstanding at June 30, 2019, is as follows:

Interest to

Fiscal Year 2020 2021 2022 2023 2024
2025-2029 2030-2034 2035-2039 Total

Principal
$	2,490,000 1,170,000 1,000,000
----
16,050,000 $ 20,710,000

Maturity
$         762,640 711,386 677,868 662,063 662,063 3,310,315 3,310,315 2,740,239
$ 12,836,889

Total
$      3,252,640 1,881,386 1,677,868 662,063 662,063 3,310,315 3,310,315 18,790,239
$ 33,546,889

Savings Results on 2018 Refunding General Obligation Bonds: Prior Debt Service
Refunding Debt Service Savings
Present Value of Savings at 4.36%

$ 34,920,250 33,748,138
$	1,172,112

$	433,093

53

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

Certificates of Participation

2010 Certificates of Participation

In June 2010, the Central Valley Support Services JPA issued 2010 Certificates of Participation on behalf of the District in the amount of $9,365,000 with interest rates ranging from 2.00 to 4.00 percent. As of June 30, 2019, the principal balance outstanding was $1,540,058.

The certificates, in their entirety, mature through November 2021. The District's liability is as follows:

Year Ending

June 30,	Principal	Interest	Total

2020	$ 1,250,000 2021                                                                                             290,058 Total                                                                                     $ 1,540,058

$        59,000 25,700
$	84,700

$ 1,309,000 315,758
$ 1,624,758

2011 Certificates of Participation

In January 2011, the Central Valley Support Services JPA issued 2011 Certificates of Participation on behalf of the District in the amount of $4,450,000 with interest rates ranging from 2.00 to 4.50 percent. As of
June 30, 2019, the principal balance outstanding was $1,532,947.

The certificates, in their entirety, mature through November 2025. The District's liability is as follows:

Year Ending

June 30,	Principal	Interest	Total

2020	$	285,000 2021                                                                                                  295,000 2022                                                                                                  310,000 2023                                                                                                  330,000 2024                                                                                                  312,947
Total	$ 1,532,947

$       132,100 118,313 103,188 86,775 69,056
$	509,432

$	417,100 413,313 413,188 416,775 382,003
$ 2,042,379

Compensated Absences

Compensated absences (unpaid employee vacation) for the District at June 30, 2019, amounted to $2,913,852.

54

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

Capital Leases

The District has entered into agreements to lease various facilities and equipment. Such agreements are, in substance, purchases (capital leases) and are reported as capital lease obligations. The District's liability on lease agreements with options to purchase is summarized below:

Balance, July 1, 2018 Additions
Payments
Balance, June 30, 2019

$ 1,626,065 1,500,000 1,552,516
$ 1,573,549

The capital leases have minimum lease payments as follows:

Year Ending June 30,

Lease Payment

2020 2021 Total
Less: Amount Representing Interest Present Value of Minimum Lease Payments

$ 1,111,818 516,436 1,628,254 54,705
$ 1,573,549

Child Development Portables

The District financed the purchase of Child Development Portables through the California Department of Education's (CDE) Child Care Facilities Revolving Fund. The agreement with the CDE includes a zero percent interest rate for the portable classrooms. During the term of the repayment, the title to the facilities shall be in the name of the State of California. Title shall pass to the District after repayment of all funds. The District bears all responsibility of maintaining the facilities and keeping the facilities free and clear of any levies, liens and encumbrances.

The loans mature in 2027 and the payments are as follows:

Year Ending

June 30,	Payment

2020 2021 2022 2023 2024
2025-2027 Total

$       126,000 126,000 63,000 63,000 63,000 189,000
$	630,000

55

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

Net Other Postemployment Benefit (OPEB) Liability

For the fiscal year ended June 30, 2019, the District reported net OPEB liability, deferred outflows of resources, and OPEB expense for the following plans:

Net OPEB

OPEB Plan	Liability

Deferred Outflows

of Resources

OPEB

Expense

District Plan
Medicare Premium Payment (MPP) Program Total

$ 357,120,975	$ 2,381,187
$ 359,502,162	$

26,532,515 -26,532,515

$ 15,816,471 (188,582)
$ 15,627,889

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 June 30, 2018, the Plan membership consisted of the following:

Inactive employees or beneficiaries currently receiving benefits payments                                                   1,136 Active employees                                                                                                                                            3,545 Total                                                                                                                                              4,681

Benefits Provided

The Plan provides medical and dental insurance benefits to eligible retirees and their spouses. Benefits are provided through a third-party insurer, and the full cost of benefits is covered by the Plan. The District's governing board has the authority to establish and amend the benefit terms as contained within the negotiated labor agreements.

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 fiscal year 2018-2019, the District paid $8,679,445 in benefits.

56

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

Total OPEB Liability of the District

The District's total OPEB liability of $357,120,975 was measured as of June 30, 2019, and was determined by an actuarial valuation on July 1, 2018.

Actuarial Assumptions

The total OPEB liability in the June 30, 2018, actuarial valuation was determined using the following assumptions, applied to all periods included in the measurement, unless otherwise specified:

Salary increases

Discount rate

3 percent, average, including inflation

3.13 percent, net of OPEB plan investment expense, including inflation

Healthcare Cost Trends: 2019
2020 2021
2022+

Medical/RX	Dental	Vision 5.7                         4.0                         3.0 5.4                         4.0                         3.0 5.1                         4.0                         3.0
4.9	4.0	3.0

The discount rate was based on the Bond Buyer 20-bond General Obligation Index.

Pre-retirement mortality rates were based on the RP-2014 Employee Mortality Table for Males or Females, as appropriate, without projection. Post-retirement mortality rates were based on the RP-2014 Health Annuitant Mortality Table for Males and Females, as appropriate, without projection.

The actuarial assumptions used in the June 30, 2018, valuation were based on the results of an actual experience study for the period July 1, 2016 to June 30, 2018.

Changes in the Total OPEB Liability

Total OPEB

Balance, June 30, 2018 Service cost Interest
Changes of assumptions or other inputs Benefit payments
Net change in total OPEB liability

Balance, June 30, 2019

Liability

$ 314,771,989 10,492,371 11,229,316 29,849,079
(9,221,780) 42,348,986
$ 357,120,975

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 4.0 percent to 3.13 percent since last study.

57

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

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 (2.13%)
Current discount rate (3.13%)

1% increase (4.13%)

Total OPEB Liability
$ 430,504,347 357,120,975
299,733,487

Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates

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 rates:

Healthcare Cost Trend Rates 1% decrease (4%)
Current trend rate (5%)

1% increase (6%)

Total OPEB Liability
$ 291,679,248 357,120,975
443,699,095

OPEB Expense and Deferred Outflows of Resources related to OPEB

For the year ended June 30, 2019, the District recognized OPEB expense of $15,816,471 and the deferred outflows of resources of $26,532,515 for changes of assumptions. The deferred outflows of resources related to changes of assumptions will be amortized over the Expected Average Remaining Service Life (EARSL) of all members that are provided benefits (active, inactive, and retirees) as of the beginning of the measurement period and will be recognized in OPEB expense as follow:

Year Ended

June 30,

Deferred Outflows

of Resources

2019 2020 2021 2022 2022 Thereafter

Total

$	 3,316,564 3,316,564 3,316,564 3,316,564 3,316,564 9,949,695
$	26,532,515

58

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

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, 2017 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, benefit payments 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, 2019, the District reported a liability of $2,381,187 for its proportionate share of the net OPEB liability for the MPP Program. The net OPEB liability was measured as of June 30, 2018, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2017. 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, 2018 and
June 30, 2017, respectively, was 0.6221 percent and 0.6108 percent, resulting in a net increase in the proportionate share of 0.0113 percent.

For the year ended June 30, 2019, the District recognized OPEB expense of $(188,582).

59

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

Actuarial Methods and Assumptions

The June 30, 2018 total OPEB liability was determined by applying update procedures to the financial reporting actuarial valuation as of June 30, 2017, and rolling forward the total OPEB liability to June 30, 2018, 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, 2018 June 30, 2017
July 1, 2010 through June 30, 2015

Entry age normal 3.87%
3.70%

4.10%

June 30, 2017 June 30, 2016
July 1, 2010 through June 30, 2015

Entry age normal 3.58%
3.70%

4.10%

For the valuation as of June 30, 2017, CalSTRS uses a generational mortality assumption, which involves the use of a base mortality table and projection scales to reflect expected annual reductions in mortality rates at each age, resulting in increases in life expectancies each year into the future. The base mortality tables are CalSTRS custom tables derived to best fit the patterns of mortality among our members. The projection scale was set equal to 110 percent of the ultimate improvement factor from the Mortality Improvement Scale (MP-2016) 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 459 or an average of 0.27 percent of the potentially eligible population (171,593).

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, 2018, 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, 2018 is 3.87 percent. The MPP Program is funded on a pay-as-you-go basis as described in Note 1, and under the pay-as-you-go method, the OPEB Plan's fiduciary net position was not projected to be sufficient to make projected future benefit payments. Therefore, a discount rate of 3.87 percent, which is the Bond Buyer 20-Bond GO Index from Bondbuyer.com as of
June 30, 2018, was applied to all periods of projected benefit payments to measure the total OPEB liability. The discount rate increased 0.29 percent from 3.58 percent as of June 30, 2017.

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CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

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

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

Net OPEB Discount Rate	Liability

1% decrease (2.87%)

Current discount rate (3.87%)

1% increase (4.87%)

$ 2,633,714 2,381,187
2,153,176

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 Rate	Liability

1% decrease (2.7% Part A and 3.1% Part B)

Current medicare costs trend rate (3.7% Part A and 4.1% Part B)

1% increase (4.7% Part A and 5.1% Part B)

$ 2,171,404 2,381,187
2,606,808

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CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

NOTE 11 - FUND BALANCES

Fund balances are composed of the following elements:

General Fund
Nonspendable

Bond Interest and Redemption Fund

Non-Major Governmental
Funds	Total

Revolving cash Stores inventories Prepaid expenditures
Total Nonspendable Restricted
Legally restricted programs Food service programs

$	 144,000	$ 1,653,039
155,000 1,952,039

3,307,015 -

-	$	3,500 -                  271,627 -                  256,400 -                  531,527

-                    26,580 -               7,935,389

$        147,500 1,924,666 411,400 2,483,566

3,333,595 7,935,389

Capital projects Debt service
Child development programs Total Restricted
Committed

Deferred maintenance projects Adult education program
Total Committed Assigned
Fee-based program carryovers Mandated claims audit reserve CNG Station
Textbooks LCAP carryover
Professional development

Grants (Residency, Local Solutions) Site carryover
Citi-Kids (future capital) Student computer refresh District-wide technology needs Mandated athletic standards

Factility standards
Charter school future program growth Child development future program growth Capital projects
Total Assigned Unassigned
Total

---
3,307,015

---

756,338 898,143 141,672 5,028,675 2,441,465 331,658 661,871 898,071 1,251,091 4,505,577 210,032 199,154

120,008 ---
17,443,755 92,721,804
$ 115,424,613

-39,015,301 -39,015,301

---

------------

------
$ 39,015,301

31,553,231 1,098,267 432,130 41,045,597

79,863 4,500,251 4,580,114

------------

-4,904,885 2,387,355 3,132,025
10,424,265 -
$ 56,581,503

31,553,231 40,113,568 432,130 83,367,913

79,863 4,500,251 4,580,114

756,338 898,143 141,672 5,028,675 2,441,465 331,658 661,871 898,071 1,251,091 4,505,577 210,032 199,154

120,008 4,904,885 2,387,355 3,132,025 27,868,020 92,721,804
$ 211,021,417

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CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

NOTE 12 - RISK MANAGEMENT

Workers' Compensation, Short-Term Disability, and Employee Medical Benefits

The District is self-insured for workers' compensation, short-term disability, health, vision and dental programs. The District accounts for and finances its uninsured risks of loss in the Self Insurance Fund. The District provides coverage for up to a maximum of $275,000 for each workers' compensation claim and up to $450,000 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 $11,576,331 reported in the Self Insurance Fund at June 30, 2019, is based on the requirements of GASB Statement No. 10, which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. This amount also consists of a reserved for health and welfare claims based on an actuary study of estimated losses.

Property and Liability

The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees and natural disasters. During fiscal year ending June 30, 2019, 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.

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CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

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, 2017 to June 30, 2019:

Workers' Compensation/ Health and

Liability Balance, July 1, 2017 Claims and changes in estimates
Claims payments - workers compensation Claims payments - health and welfare
Liability Balance, June 30, 2018 Claims and changes in estimates
Claims payments - workers compensation Claims payments - health and welfare
Liability Balance, June 30, 2019

Health and welfare claims liability and reserve Workers' compensation claims liability and reserve
Total Liability Balance, June 30, 2019

Welfare

$ 20,279,535 73,319,973 2,097,100 62,104,869 29,397,539 70,514,128 2,042,977 64,973,370
$ 32,895,320

$ 16,918,833 15,976,487
$ 32,895,320

NOTE 13 - EMPLOYEE RETIREMENT SYSTEMS

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

For the fiscal year ended June 30, 2019, the District reported net pension liabilities, deferred outflows of resources, deferred inflows of resources, and pension expense for each of the above plans as follows:

Collective Net Pension Plan	Pension Liability

Collective Deferred Outflows of Resources

Collective Deferred Inflows of Resources

Collective Pension Expense

CalSTRS CalPERS
Total

$      318,541,616 149,586,205
$	468,127,821

$        96,257,262        $ 43,184,762
$	139,442,024	$

22,976,208	$ 350,947
23,327,155	$

40,235,537 31,096,439 71,331,976

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CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

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, 2017, annual actuarial valuation report, Defined Benefit Program Actuarial Valuation. This report and CalSTRS audited financial information are publicly available reports that can be found on the CalSTRS website under Publications at: http://www.calstrs.com/member-publications.

Benefits Provided

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

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

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

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CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

The STRP provisions and benefits in effect at June 30, 2019, are summarized as follows:

STRP Defined Benefit Program

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

On or before December 31, 2012 2% at 60
5 years of service Monthly for life 60
2.0% - 2.4% 10.25% 16.28% 9.828%

On or after January 1, 2013 2% at 62
5 years of service Monthly for life 62
2.0% - 2.4% 10.205% 16.28% 9.828%

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 percent of applicable member earnings phased over a seven-year period. The contribution rates for each plan for the year ended June 30, 2019, are presented above and the District's total contributions were $31,357,995.

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

At June 30, 2019, 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:

District's proportionate share of net pension liability

State's proportionate share of the net pension liability associated with the District

Total

$ 318,541,616 182,379,973
$ 500,921,589

The net pension liability was measured as of June 30, 2018. 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, 2018 and June 30, 2017, respectively was 0.3466 percent and 0.3374 percent, resulting in a net increase in the proportionate share of 0.0092 percent.

66

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

For the year ended June 30, 2019, the District recognized pension expense of $40,235,537. In addition, the District recognized pension expense and revenue of $21,425,534 for support provided by the State. At
June 30, 2019, the District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Combined Deferred Outflows of Resources

Combined Deferred Inflows of Resources

Pension contributions subsequent to measurement date Net change in proportionate share of net pension liability Difference 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

Total

$	31,357,995	$ 14,425,184

-

987,785 49,486,298
$	96,257,262	$

-6,083,350

12,265,864

4,626,994 -22,976,208

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 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,

Deferred Inflows of Resources

2020	$	2,663,265 2021                                                                                                                                              (1,932,535) 2022                                                                                                                                            (10,290,582) 2023                                                                                                                                              (2,706,012) Total	$          (12,265,864)

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CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

The deferred outflows/(inflows) of resources related to the net change in proportionate share of net pension liability, 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,

Deferred Outflows/(Inflows) of Resources

2020 2021 2022 2023 2024 Thereafter Total

$            10,965,567 10,965,567 10,965,566 9,090,422 11,209,128 992,673
$	54,188,923

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, 2017, and rolling forward the total pension liability to June 30, 2018. The financial reporting actuarial valuation as of June 30, 2017, 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, 2017 June 30, 2018
July 1, 2010 through June 30, 2015 Entry age normal
7.10% 7.10% 2.75%
3.50%

CalSTRS uses a generational mortality assumption, which involves the use of a base mortality table and projection scales to reflect expected annual reductions in mortality rates at each age, resulting in increases in life expectancies each year into the future. The base mortality tables are CalSTRS custom tables derived to best fit the patterns of mortality among its members. The projection scale was set equal to 110 percent of the ultimate improvement factor from the Mortality Improvement Scale (MP-2016) table, issued by the Society of Actuaries.

68

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

The long-term expected rate of return on pension plan investments was determined using a building-block method in which best estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. The best estimate ranges were developed using capital market assumptions from CalSTRS general investment consultant (Pension Consulting Alliance-PCA) as an input to the process. The actuarial investment rate of return assumption was adopted by the board in February 2017 in conjunction with the most recent experience study. For each future valuation, CalSTRS consulting actuary (Milliman) reviews the return assumption for reasonableness based on the most current capital market assumptions. Best estimates of 20-year geometrically-linked real rates of return and the assumed asset allocation for each major asset class for the year ended June 30, 2018, are summarized in the following table:

Asset Class Global equity
Fixed income Real estate Private equity

Assumed Asset Allocation 47% 12% 13% 13%

Long-Term Expected Real Rate of Return 6.30% 0.30% 5.20% 9.30%

Absolute Return/Risk Mitigating Strategies	9%	2.90% Inflation sensitive	4%	3.80% Cash/liquidity	2%                                           -1.00%

Discount Rate

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

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

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

Net Pension Liability
$ 466,626,192 318,541,616 195,765,133

69

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

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, 2017, 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, 2019, 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% 18.062%

On or after January 1, 2013
2% at 62
5 years of service Monthly for life 62
1.0% - 2.5% 7.00% 18.062%

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CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

Contributions

Section 20814(c) of the California Public Employees' Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Total plan contributions are calculated through the CalPERS annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The District is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. The contributions rates are expressed as percentage of annual payroll. The contribution rates for each plan for the year ended June 30, 2019, are presented above and the total District contributions were $14,479,421.

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

As of June 30, 2019, the District reported net pension liabilities for its proportionate share of the CalPERS net pension liability totaling $149,586,205. The net pension liability was measured as of June 30, 2018. 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, 2018 and
June 30, 2017, respectively was 0.5610 percent and 0.5487 percent, resulting in a net increase in the proportionate share of 0.0123 percent.

For the year ended June 30, 2019, the District recognized pension expense of $31,096,439. At June 30, 2019, the District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Combined Deferred Outflows of Resources

Combined Deferred Inflows of Resources

Pension contributions subsequent to measurement date Net change in proportionate share of net pension liability Difference 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 Total

$	14,479,421	$ 2,736,553

1,226,942

9,806,323 14,935,523
$	43,184,762	$

-350,947

-

--
350,947

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.

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CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

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

Year Ended June 30,

Deferred Outflows of Resources

2020	$	4,462,660 2021                                                                                                                                                 1,067,207 2022                                                                                                                                                (3,420,002) 2023                                                                                                                                                   (882,923) Total	$            1,226,942

The deferred outflows/(inflows) of resources related to the net change in proportionate share of net pension liability, differences between expected and actual experience in the measurement of the total pension liability, and changes of assumptions will be amortized over the Expected Average Remaining Service Life (EARSL) of all members that are provided benefits (active, inactive, and retirees) as of the beginning of the measurement period. The EARSL for the measurement period is 4.0 years and will be recognized in pension expense as follows:

Year Ended June 30,

Deferred Outflows/(Inflows) of Resources

2020	$	11,740,760 2021                                                                                                                                               11,573,706 2022                                                                                                                                                 3,812,986 Total	$          27,127,452

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, 2017, and rolling forward the total pension liability to June 30, 2018. The financial reporting actuarial valuation as of June 30, 2017, 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, 2017 June 30, 2018
July 1, 1997 through June 30, 2015 Entry age normal
7.15% 7.15% 2.50%
Varies by entry age and service

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

72

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

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

Asset Class Global equity
Fixed income Inflation assets Private equity Real assets Liquidity

Assumed Asset Allocation 50% 28% 0% 8% 13% 1%

Long-Term Expected Real Rate of Return 5.98% 2.62% 1.81% 7.23% 4.93% -0.92%

Discount Rate

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

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

Discount Rate 1% decrease (6.15%)
Current discount rate (7.15%)

1% increase (8.15%)

Net Pension Liability
$ 217,790,361 149,586,205
93,001,094

73

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

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

Plan Description

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

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

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

Funding Policy

Participants in APPLE are required to contribute 3.75 percent of gross salary to APPLE. The District is required to contribute 3.75 percent of gross salary expenditures to APPLE. The District's contributions to APPLE for the fiscal year ending June 30, 2019, 2018, 2017 were $749,547, $758,111, and $763,990, 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 $16,847,283 (9.828 percent of annual payroll). Contributions are no longer appropriated in the annual Budget Act for the legislatively mandated benefits to CalPERS. Therefore, there is no on behalf contribution rate for CalPERS. Under accounting principles generally accepted in the United States of America, these amounts are to be reported as revenues and expenditures. Accordingly, these amounts have been recorded in these financial statements.

Senate Bill 90 (Chapter 33, Statutes of 2019), which was signed by the Governor on June 27, 2019, appropriated for an additional 2018-2019 contribution on behalf of school employers of $2.246 billion for CalSTRS and
$904 million for CalPERS. A proportionate share of these contributions has been recorded in these financial statements. On behalf payments related to these additional contributions have been excluded from the calculation of available reserves and have not been included in the budgeted amounts reported in the General Fund -Budgetary Comparison Schedule.

74

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

NOTE 14 - COMMITMENTS AND CONTINGENCIES

Grants

The District received financial assistance from Federal and State agencies in the form of grants. The disbursement of funds received under these programs generally requires compliance with terms and conditions specified in the grant agreements and are subject to audit by the grantor agencies. Any disallowed claims resulting from such audits could become a liability of the General Fund or other applicable funds. However, in the opinion of management, any such disallowed claims will not have a material adverse effect on the overall financial position of the District at June 30, 2019.

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, 2019.

Operating Leases

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

Construction Commitments

As of June 30, 2019, the District had the following commitments with respect to the unfinished capital projects:

Remaining Construction
Location	Description	Commitment

Expected Date of Completion

Jefferson Elementary School Cole Elementary School
Fort Washington Elementary School Young Elementary School
Various
Total

Modernization Modernization Modernization New School Portables

$         895,152 1,380,597 478,942 16,676,618 911,857
$ 20,343,166

August 2019 October 2019 September 2019 July 2020 August 2019

75

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2019

NOTE 15 - PARTICIPATION IN JOINT POWERS AUTHORITIES

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

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

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

During the year ended June 30, 2019, the District made a payment of $380,636 to SELF for liability insurance coverage.

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

During the year ended June 30, 2019, the District made payments of $2,390,606 to ASCIP for property and liability insurance coverage and $958,637 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, 2019, the District made a payment of $10,000 to the Education Technology JPA for founding members fees.

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

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

During the year ended June 30, 2019, the District made payments of $933,967 to CART for the financing and operation of a joint technical center for high school age students.

76

REQUIRED SUPPLEMENTARY INFORMATION

77

CLOVIS UNIFIED SCHOOL DISTRICT

GENERAL FUND
BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED JUNE 30, 2019

Variances -Favorable (Unfavorable)
Budgeted Amounts	Final Original	Final                   Actual                to Actual
REVENUES

Local Control Funding Formula

Federal sources

$ 375,300,523

15,828,407

$ 377,019,505

20,288,418

$ 377,019,505	$	-

20,288,418	-

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 - principal Debt service - interest
Total Expenditures

Excess of Revenues Over Expenditures Other Financing Sources/(Uses)
Transfers in Other sources Transfers out
Net Financing Sources/(Uses) NET CHANGE IN FUND BALANCES
Fund Balance -Beginning

67,363,446 14,154,763 472,647,139

189,160,328 76,670,703 125,165,453 30,810,999 29,484,454
(451,790) 1,056,245 1,611,103
25,890 453,533,385 19,113,754

1,306,000 1,500,000 (7,854,336) (5,048,336)
14,065,418

94,365,511

68,120,374 20,020,899 485,449,196

192,766,579 80,290,308 129,441,670 22,555,496 30,519,913
(381,771) 3,486,662 1,552,516
33,724 460,265,097 25,184,099

2,229,339 1,500,000 (7,854,336) (4,124,997)
21,059,102

94,365,511

85,436,107 20,020,899 502,764,929

192,766,579 80,290,308 146,757,403 22,555,496 30,519,913
(381,771) 3,486,662 1,552,516
33,724 477,580,830 25,184,099

2,229,339 1,500,000 (7,854,336) (4,124,997)
21,059,102

94,365,511

17,315,733 -17,315,733

--
(17,315,733) ------
(17,315,733) -

-----
-

Fund Balance - Ending	$ 108,430,929	$ 115,424,613	$ 115,424,613	$	-

1 On behalf payments of $17,315,731 relating to Senate Bill 90 (Chapter 33, Statutes of 2019) are included in the actual revenues and expenditures but have not been included in the budgeted amounts.

See accompanying note to required supplementary information.

78

CLOVIS UNIFIED SCHOOL DISTRICT

SCHEDULE OF CHANGES IN THE DISTRICT'S TOTAL OPEB LIABILITY AND RELATED RATIOS
FOR THE YEAR ENDED JUNE 30, 2019

Total OPEB Liability Service cost
Interest
Changes of assumptions Benefit payments
Net change in total OPEB liability

2019

$	 10,492,371 11,229,316 29,849,079
(9,221,780) 42,348,986

2018

$     10,186,768 10,741,686
-(5,725,349)
15,203,105

Total OPEB liability - beginning Total OPEB liability - ending

Covered payroll

District's total OPEB liability as a percentage of covered payroll

314,771,989 $ 357,120,975

N/A1

N/A1

299,568,884 $ 314,771,989

N/A1

N/A1

1 The District's 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 accompanying note to required supplementary information.

79

CLOVIS UNIFIED SCHOOL DISTRICT

SCHEDULE OF THE DISTRICT'S PROPORTIONATE SHARE OF THE NET OPEB LIABILITY - MPP PROGRAM
FOR THE YEAR ENDED JUNE 30, 2019

Year ended June 30,

District's proportion of the net OPEB liability

2019

0.6221%

2018

0.6108%

District's proportionate share of the net OPEB liability	$	2,381,187	$	2,569,769

District's covered-employee payroll

District's proportionate share of the net OPEB liability as a percentage of it's covered-employee payroll

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

N/A 1	N/A 1

N/A 1	N/A 1

-0.40%	0.01%

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 accompanying note to required supplementary information.

80

CLOVIS UNIFIED SCHOOL DISTRICT

SCHEDULE OF THE DISTRICT'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
FOR THE YEAR ENDED JUNE 30, 2019

CalSTRS

District's proportion of the net pension liability (asset)

District's proportionate share of the net pension liability State's proportionate share of the net pension liability
associated with the District Total

District's covered - employee payroll

District's proportionate share of the net pension liability as a percentage of its covered - employee payroll

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

2019

0.3466%

$ 318,541,616

182,379,973 $ 500,921,589

$ 188,468,233

169.02%

71%

2018

0.3374%

$ 312,018,523

184,587,522 $ 496,606,045

$ 182,374,682

171.09%

69%

CalPERS

District's proportion of the net pension liability

District's proportionate share of the net pension liability

0.5610%

$ 149,586,205

0.5487%

$ 130,998,817

District's covered - employee payroll	$	74,208,963	$	70,034,469

District's proportionate share of the net pension liability as a percentage of its covered - employee payroll

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

201.57%

71%

187.05%

72%

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

See accompanying note to required supplementary information.

81

2017

0.3363%

$ 271,983,817

154,835,535 $ 426,819,352

$ 171,698,993

158.41%

70%

0.5366%

2016

0.3507%

$ 236,088,495

124,864,788 $ 360,953,283

$ 163,040,743

144.80%

74%

0.5465%

$ 105,981,422	$	80,561,650

$	64,365,730	$	60,511,656

164.66%

74%

133.13%

79%

81

CLOVIS UNIFIED SCHOOL DISTRICT

SCHEDULE OF DISTRICT CONTRIBUTIONS FOR THE YEAR ENDED JUNE 30, 2019

2019	2018 CalSTRS

Contractually required contribution
Contributions in relation to the contractually required contribution Contribution deficiency (excess)

$     31,357,995 31,357,995
$	-

$     27,195,966 27,195,966
$	-

District's covered - employee payroll

Contributions as a percentage of covered - employee payroll

$ 192,616,677

16.28%

$ 188,468,233

14.43%

CalPERS

Contractually required contribution

Contributions in relation to the contractually required contribution Contribution deficiency (excess)

District's covered - employee payroll

$     14,479,421 14,479,421
$	-

$	80,165,104

$     11,525,394 11,525,394
$	-

$	74,208,963

Contributions as a percentage of covered - employee payroll	18.062%	15.531%

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

See accompanying note to required supplementary information.

82

2017	2016	2015

$     22,942,735 22,942,735
$	-

$     18,423,302 18,423,302
$	-

$     14,478,017 14,478,017
$	-

$ 182,374,682

12.58%

$ 171,698,993

10.73%

$ 163,040,743

8.88%

$       9,726,387 9,726,387
$	-

$	70,034,469

$       7,625,408 7,625,408
$	-

$	64,365,730

$       7,122,827 7,122,827
$	-

$	60,511,656

13.888%	11.847%	11.771%

82

CLOVIS UNIFIED SCHOOL DISTRICT

NOTE TO REQUIRED SUPPLEMENTARY INFORMATION JUNE 30, 2019

NOTE 1 - PURPOSE OF SCHEDULES

Budgetary Comparison Schedule

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

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

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

At June 30, 2019, the District's General Fund exceeded the budgeted amount in total as follows by $17,315,733 due to the SB 90 additional on behalf contributions by the State to the CalSTRS and CalPERS pensions that were unknown at the time the budget was adopted.

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 plan rate of investment return assumption was changed from 4.0 percent to 3.13 percent since the 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 plans' fiduciary net position. In the future, as data becomes available, ten years of information will be presented.

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

Changes of Assumptions - The plan rate of investment return assumption was changed from 3.58 percent to 3.87 percent since the previous valuation.

83

CLOVIS UNIFIED SCHOOL DISTRICT

NOTE TO REQUIRED SUPPLEMENTARY INFORMATION JUNE 30, 2019

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

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

Changes in Benefit Terms - There were no changes in benefit terms since the previous valuations for both CalSTRS and CalPERS.

Changes of Assumptions - There were no changes in economic assumptions for either the CalSTRS or CalPERS plans from the previous valuations.

Schedule of District Contributions

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

84

SUPPLEMENTARY INFORMATION

85

CLOVIS UNIFIED SCHOOL DISTRICT

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED JUNE 30, 2019

Federal Grantor/Pass-Through Grantor/Program
U.S. DEPARTMENT OF EDUCATION

Federal Catalog Number

Pass-Through Entity Identifying Number

Federal Expenditures

Indian Education Pell Grant
Passed Through California Department of Education: Adult Education
Basic
Secondary Education
English Literacy and Civics Education Title I, Part A, Basic
ESEA: ESSA School Improvement (CSI) Title I, Part C, Migrant
Title II, Part A, Supporting Effective Instruction
Title III, English Language Acquisition - Limited English Proficient
Title III, English Language Acquisition - Immigrant Education
ESSA, Title IV, Part A, Student Support and Acadmic Enrichment Grants
Title IV, Part B, 21st Century Community Learning Centers Program
Special Education Cluster
Special Education, Part B Basic Local Assistance Special Education, Part B, Preschool Grants Special Education, Part B, Alternative Dispute
Resolution
Special Education, Part B, Mental Health Allocation Special Education, Part B, Preschool Staff
Development
Subtotal Special Education Cluster Special Education, Part C, Early Intervention Carl D. Perkins Career and Technical Education,
Secondary 131
Improvement Act of 2006 Rural Community Equipment Grants
Workability II, Transitions Partnership

84.060 84.063

84.002A 84.002 84.002A 84.010 84.010 84.011 84.367

84.365

84.365

84.424

84.186

84.027 84.173

84.173A 84.027A

84.173A

84.181

84.048

84.048 84.126

N/A              $       119,494 N/A                       481,659

14508	158,078 13978	296,450 14109                       25,403 14329                  8,099,744 15438                         8,564 14326                       63,893 14341                  1,580,453

14346	282,836

15146	59,547

15396	227,790

14347	120,439

13379                  6,888,037 13430                     115,415

13007                       15,865 14468                     478,788

13431                         1,937 7,500,042
24314	81,623

14894	247,573

15295                       29,464 10006                     156,608

Subtotal U.S. Department of Education	19,539,660

N/A - Not applicable

See accompanying note to supplementary information.

86

CLOVIS UNIFIED SCHOOL DISTRICT

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (Continued) FOR THE YEAR ENDED JUNE 30, 2019

Federal Grantor/Pass-Through Grantor/Program
U.S. DEPARTMENT OF AGRICULTURE

Passed Through California Department of Education:

Child Nutrition Cluster

Federal Catalog
Number

Pass-Through Entity Identifying
Number

Federal

Expenditures

National School Lunch Basic Breakfast
Especially Needy Breakfast Meals Supplements - Snack Summer Food Program
Food Distribution - Commodities

10.555	13391 10.553	13525 10.553	13526 10.555	13391 10.559	13004 10.555	13391

$ 7,609,450 54,627 1,922,982 165,506 120,817 1,142,450

Subtotal Child Nutrition Cluster Subtotal U.S. Department of Agriculture
U.S. DEPARTMENT OF DEFENSE
Air Force Junior ROTC	12.357 U.S. DEPARTMENT OF HEALTH AND HUMAN
SERVICES
Passed Through California Department of Health Care Services:
Medicaid Cluster
Medi-Cal Administrative Activities                                      93.778 Medi-Cal Billing Option                                                       93.778
Subtotal Medicaid Cluster
Subtotal U.S. Department of Health and Human Services
Total Federal Programs

11,015,832 11,015,832

N/A	65,431

10060                     857,036 10013                     817,344 1,674,380

1,674,380 $ 32,295,303

N/A - Not applicable

See accompanying note to supplementary information.

87

CLOVIS UNIFIED SCHOOL DISTRICT

LOCAL EDUCATION AGENCY ORGANIZATION STRUCTURE JUNE 30, 2019

ORGANIZATION

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

GOVERNING BOARD

MEMBER

Brian D. Heryford Christopher Casado Steven G. Fogg, M.D. Susan K. Hatmaker Ginny L. Hovsepian Elizabeth Sandoval Tiffany Stoker Madsen

OFFICE

President
Vice-President Clerk
Member Member Member Member

TERM EXPIRES

2020 2020 2020 2022 2020 2022 2022

ADMINISTRATION

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

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

See accompanying note to supplementary information.

88

CLOVIS UNIFIED SCHOOL DISTRICT

SCHEDULE OF AVERAGE DAILY ATTENDANCE FOR THE YEAR ENDED JUNE 30, 2019

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 Education, Nonpublic, Nonsectarian Schools Transitional kindergarten through third
Fourth through sixth Seventh and eighth 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
Seventh and eighth Ninth through twelfth
Total ADA (Non-Classroom Based)

Second Period Report

12,685.27 9,390.18 6,592.21 12,385.28 41,052.94

12.16 8.16 2.38 11.74 34.44

0.34 3.83 4.21 8.44 16.82

---
0.90

0.90

5.66 16.94 38.63 61.23 41,166.33

57.14 383.24 440.38

Annual Report

12,685.82 9,379.71 6,572.70 12,257.83 40,896.06

12.16 8.16 2.38 11.74 34.44

0.46 3.89 4.14 8.07 16.56

0.14 0.31 0.08 1.32

1.85

5.56 16.43 37.58 59.57 41,008.48

61.21 385.07 446.28

See accompanying note to supplementary information.

89

CLOVIS UNIFIED SCHOOL DISTRICT

SCHEDULE OF INSTRUCTIONAL TIME FOR THE YEAR ENDED JUNE 30, 2019

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

2018-2019 Actual Minutes
36,045

56,475 56,475 56,475

56,475 56,475 56,475 62,749 62,749

65,242 65,242 65,242
65,242

Number of Days Traditional Calendar 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 accompanying note to supplementary information.

90

CLOVIS UNIFIED SCHOOL DISTRICT

RECONCILIATION OF ANNUAL FINANCIAL AND BUDGET REPORT WITH AUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2019

There were no adjustments to the Unaudited Actual Financial Report, which required reconciliation to the audited financial statements at June 30, 2019.

See accompanying note to supplementary information.

91

CLOVIS UNIFIED SCHOOL DISTRICT

SCHEDULE OF FINANCIAL TRENDS AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2019

(Budget)

2020 1	2019	2018	2017

GENERAL FUND Revenues
Other sources and transfers in Total Revenues
Expenditures
Other uses and transfers out Total Expenditures
and Other Uses INCREASE/(DECREASE) IN
FUND BALANCE

$ 480,615,747	$ 502,764,929	$ 446,961,685	$ 436,410,534

	1,731,000  	3,729,339  	2,875,483  	3,301,979 

	482,346,747  	506,494,268  	449,837,168  	439,712,513 

478,575,254	477,580,830	438,461,876	418,089,356

	7,847,980  	7,854,336  	8,737,534  	11,537,347 

	486,423,234  	485,435,166  	447,199,410  	429,626,703 

 $	(4,076,487)   $ 21,059,102   $	2,637,758   $ 10,085,810 

ENDING FUND BALANCE	$ 111,348,126	$ 115,424,613	$ 94,365,511	$ 91,727,753

AVAILABLE RESERVES 2

AVAILABLE RESERVES AS A PERCENTAGE OF TOTAL OUTGO 4

$ 99,958,825

20.5%

$ 92,721,804

19.8%

$ 86,425,899

19.3%

$ 75,872,392

17.7%

LONG-TERM OBLIGATIONS 3 AVERAGE DAILY
ATTENDANCE AT P-2

Not Available

41,489

$ 844,168,472

41,166

$ 818,590,757

41,005

$ 812,010,638

40,723

The General Fund balance has increased by $23,696,860 over the past two years. The fiscal year 2019-2020 budget projects a decrease of $4,076,487 (3.53 percent). For a district this size, the State recommends available reserves of at least 2.0 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 but anticipates incurring an operating deficit during the 2019-2020 fiscal year. Total long-term obligations have increased by $32,157,834 over the past two years due to the issuance of bonds for facilities additions and improvements, and increases in the District's other postemployment benefits obligations.

Average daily attendance has increased by 443 over the past two years. Additional growth of 323 ADA is anticipated during fiscal year 2019-2020.

1 Budget 2020 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 Long-term obligations as of June 30, 2017, were restated due to the implementation of GASB Statement No. 75.
4 On behalf payments of $17,315,733 relating to Senate Bill 90 (Chapter 33, Statutes of 2019) have been excluded from the calculation of available reserves for the fiscal year ending June 30, 2019.

See accompanying note to supplementary information.

92

CLOVIS UNIFIED SCHOOL DISTRICT

SCHEDULE OF CHARTER SCHOOLS FOR THE YEAR ENDED JUNE 30, 2019

Name of Charter School

Clovis Online School (Charter School Number 1006)

Included in Audit Report
Yes

See accompanying note to supplementary information.

93

CLOVIS UNIFIED SCHOOL DISTRICT

NON-MAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET
JUNE 30, 2019

Charter School Fund
ASSETS

Adult Education
Fund

Child Development
Fund

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

LIABILITIES AND FUND BALANCES Liabilities:
Accounts payable Due to other funds
Total Liabilities Fund Balances:
Nonspendable Restricted Committed Assigned
Total Fund Balances Total Liabilities and
Fund Balances

$	4,335,949	$ 74,300
521,512 222,300 -
$	5,154,061	$

$	296	$ -
296

222,300 26,580 -
4,904,885 5,153,765

$	5,154,061	$

3,460,170	$ 826,257 231,097
34,100 53,849
4,605,473	$

13,773        $ -
13,773

91,449 -
4,500,251 -4,591,700

4,605,473	$

2,508,949 508,899
---
3,017,848

51,313 147,050 198,363

-432,130 -
2,387,355 2,819,485

3,017,848

See accompanying note to supplementary information.

94

Cafeteria

Fund

Deferred Maintenance
Fund

Building

Fund

Capital Facilities
Fund

County School Facilities
Fund

$	 6,924,810	$ 1,567,719
--
217,778

$	8,710,307	$

$	 405,389	$ 151,751
557,140

620,894	$ 11,411
200,000 --
832,305	$

752,442	$ -
752,442

8,300,773	$ 49,436 20,648
--
8,370,857	$

898,919	$ -
898,919

15,605,693	$ 67,400
---
15,673,093	$

337,207	$ 336,065
673,272

9,343,146 77,269
---
9,420,415

338,943 -
338,943

217,778 7,935,389 -
-

8,153,167

-                                  --                   7,471,938
79,863                                  --                                  -
79,863	7,471,938

-14,999,821 -
-

14,999,821

-9,081,472 -
-

9,081,472

$	8,710,307	$	832,305	$	8,370,857	$	15,673,093	$	9,420,415

94

CLOVIS UNIFIED SCHOOL DISTRICT

NON-MAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET
JUNE 30, 2019

Special Reserve Capital Outlay Fund
ASSETS

Central Valley School Districts Financing Corporation
Fund

Total Non-Major
Governmental

Funds

Deposits and investments	$ Receivables
Due from other funds Prepaid expenses Stores inventories
Total Assets	$

LIABILITIES AND FUND BALANCES Liabilities:
Accounts payable	$ Due to other funds
Total Liabilities Fund Balances:
Nonspendable Restricted Committed Assigned
Total Fund Balances Total Liabilities and
Fund Balances	$

3,124,938	$ 21,878 40,289
--
3,187,105	$

55,080        $ -
55,080

---
3,132,025 3,132,025

3,187,105	$

1,092,221	$ 6,046
---
1,098,267	$

-	$ -
-

-1,098,267 -
-1,098,267

1,098,267	$

55,317,543 3,210,615 1,013,546 256,400 271,627 60,069,731

2,853,362 634,866 3,488,228

531,527 41,045,597 4,580,114 10,424,265 56,581,503

60,069,731

See accompanying note to supplementary information.

95

CLOVIS UNIFIED SCHOOL DISTRICT

NON-MAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2019

REVENUES

Local Control Funding Formula

Charter School Fund

$	4,276,820

Adult Education Fund

$	-

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
Facility acquisition and construction Debt service
Principal

Interest and other

Total Expenditures

Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources and Uses
Transfers in Transfers out
Net Other Financing Sources and Uses NET CHANGE IN FUND BALANCES
Fund Balance - Beginning

Fund Balance - Ending

-441,074 134,695
4,852,589

2,275,866

1,828 70,658 440,116

-402,238

94,083 47,304 -

--
3,332,093 1,520,496

-(212,963) (212,963)
1,307,533 3,846,232
$	5,153,765	$

991,054 2,557,319 1,951,539 5,499,912

3,187,390

659,652 286,428 1,589,961

-323,540

100,124 369,376 2,925

--
6,519,396 (1,019,484)

846,880 -846,880
(172,604) 4,764,304
4,591,700

See accompanying note to supplementary information.

96

Child Development
Fund

Cafeteria

Fund

Deferred Maintenance
Fund

Building

Fund

Capital Facilities
Fund

$	-	$ -
4,806,183 8,517,151 13,323,334

10,406,589

1,632,421 --

-136,109

555,337 32,321 34,189

126,000 -
12,922,966 400,368

---
400,368 2,419,117
$	2,819,485	$

-	$ 11,015,831
728,447 4,298,066 16,042,344

-

---

14,962,411 -

586,041 --

--
15,548,452 493,892

---
493,892 7,659,275
8,153,167	$

-	$ -
-51,612 51,612

-

---

--

-2,153,458 678,798

--
2,832,256 (2,780,644)

4,300,000 (1,700,000) 2,600,000
(180,644) 260,507
79,863	$

-	$ -
-2,177,551 2,177,551

-

---

--

-1,436,368 7,236,056

1,480,000 256,206 10,408,630
(8,231,079)

3,612,545 -3,612,545
(4,618,534) 12,090,472
7,471,938	$

---
18,135,427 18,135,427

-

---

--

-1,571,358
10,063,095

--
11,634,453 6,500,974

-(8,836,000) (8,836,000) (2,335,026)
17,334,847

14,999,821

96

CLOVIS UNIFIED SCHOOL DISTRICT

NON-MAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2019

County School Facilities Fund
REVENUES

Special Reserve Capital Outlay
Fund

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
Facility acquisition and construction Debt service
Principal

Interest and other

Total Expenditures

Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources and Uses
Transfers in Transfers out
Net Other Financing Sources and Uses NET CHANGE IN FUND BALANCES
Fund Balance - Beginning

Fund Balance - Ending

$	 -	$ -
16,833,786 140,400 16,974,186

-

---

--

-4,858
17,695,475

--
17,700,333 (726,147)

8,500,000 (180,089)
8,319,911 7,593,764 1,487,708
$	9,081,472	$

---
1,138,717 1,138,717

-

---

--

-715,383 874,408

--
1,589,791 (451,074)

2,687,963 (3,393,339)
(705,376) (1,156,450)
4,288,475

3,132,025

See accompanying note to supplementary information.

97

Central Valley School Districts Financing Corporation
Fund

Total Non-Major
Governmental

Funds

$	---
22,972 22,972

-

---

--

---

---
22,972

---
22,972 1,075,295
$	1,098,267

$	 4,276,820 12,006,885 25,366,809 36,568,130 78,218,644

15,869,845

2,293,901 357,086 2,030,077

14,962,411 861,887

1,335,585 6,330,426 36,584,946

1,606,000 256,206 82,488,370
(4,269,726)

19,947,388 (14,322,391)
5,624,997 1,355,271 55,226,232
$	56,581,503

97

CLOVIS UNIFIED SCHOOL DISTRICT

AGENCY FUNDS
COMBINING BALANCE SHEET JUNE 30, 2019

Warrant/

Pass-Through Fund
ASSETS

Associated Student Body
Funds	Total

Cash in county treasury Accounts receivable
Total Assets

LIABILITIES

Due to student groups/other agencies

Total Liabilities

$	276,700	$ 57,601
$	334,301	$

$	334,301	$

$	334,301	$

2,296,259	$ -
2,296,259	$

2,296,259	$

2,296,259	$

2,572,959 57,601 2,630,560

2,630,560

2,630,560

See accompanying note to supplementary information.

98

CLOVIS UNIFIED SCHOOL DISTRICT

AGENCY FUNDS
COMBINING STATEMENT OF ASSETS AND LIABILITIES STUDENT BODY FUNDS
JUNE 30, 2019

High Schools

ASSETS

Intermediate

Schools

Elementary

Schools	Total

Cash on hand and in banks

LIABILITIES

Due to student groups Club accounts General ASB accounts
Total due to student groups

$	1,307,522	$

$	626,103	$ 681,419
$	1,307,522	$

308,276	$

84,532	$ 223,744
308,276	$

680,461

-680,461
680,461

$	2,296,259

$         710,635 1,585,624
$	2,296,259

See accompanying note to supplementary information.

99

CLOVIS UNIFIED SCHOOL DISTRICT

COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FOR HIGH SCHOOL AND INTERMEDIATE SCHOOL STUDENT BODY FUNDS
FOR THE YEAR ENDED JUNE 30, 2019

HIGH SCHOOLS

ASSETS

Balance

July 1, 2018	Additions

Balance

Deductions	June 30, 2019

Cash on Hand and in Banks

LIABILITIES

Due to Student Groups Club Accounts General ASB Accounts
Total Due to Student Groups

INTERMEDIATE SCHOOLS ASSETS
Cash on Hand and in Banks

LIABILITIES

Due to Student Groups Club Accounts General ASB Accounts
Total Due to Student Groups

TOTALS ASSETS
Cash on Hand and in Banks

LIABILITIES

Due to Student Groups Club Accounts General ASB Accounts
Total Due to Student Groups

$	1,201,979

$        588,848 613,131
$	1,201,979

$	298,374

$          75,585 222,789
$	298,374

$	1,500,353

$        664,433 835,920
$	1,500,353

$	4,206,522

$     1,128,434 3,078,088
$	4,206,522

$	721,551

$        198,500 523,051
$	721,551

$	4,928,073

$     1,326,934 3,601,139
$	4,928,073

$	4,100,979	$

$	1,091,179	$ 3,009,800
$	4,100,979	$

$	711,649	$

$	189,553	$ 522,096
$	711,649	$

$	4,812,628	$

$	1,280,732	$ 3,531,896
$	4,812,628	$

1,307,522

626,103 681,419 1,307,522

308,276

84,532 223,744 308,276

1,615,798

710,635 905,163
1,615,798

See accompanying note to supplementary information.

100

CLOVIS UNIFIED SCHOOL DISTRICT

COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES STUDENT BODY FUNDS
HIGH SCHOOLS
FOR THE YEAR ENDED JUNE 30, 2019

Buchanan High School

ASSETS

Balance

July 1, 2018	Additions

Balance

Deductions	June 30, 2019

Cash on Hand and in Banks

LIABILITIES

Due to Student Groups Club Accounts
General ASB Accounts
Total Due to Student Groups

Clovis High School ASSETS
Cash on Hand and in Banks

LIABILITIES

Due to Student Groups Club Accounts
General ASB Accounts
Total Due to Student Groups

Clovis East High School ASSETS
Cash on Hand and in Banks

LIABILITIES

Due to Student Groups Club Accounts
General ASB Accounts
Total Due to Student Groups

$	287,545	$

$       116,118       $ 171,427
$	287,545	$

$	312,683	$

$       138,802       $ 173,881
$	312,683	$

$	196,638	$

$         90,072       $ 106,566
$	196,638	$

806,460	$

124,664	$ 681,796 806,460	$

839,746	$

216,497	$ 623,249 839,746	$

513,171	$

184,036	$ 329,135
513,171	$

843,612	$

132,513	$ 711,099 843,612	$

816,527	$

190,042	$ 626,485 816,527	$

504,336	$

178,818	$ 325,518
504,336	$

250,393

108,269 142,124 250,393

335,902

165,257 170,645 335,902

205,473

95,290 110,183
205,473

See accompanying note to supplementary information.

101

CLOVIS UNIFIED SCHOOL DISTRICT

COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES STUDENT BODY FUNDS
HIGH SCHOOLS, Continued
FOR THE YEAR ENDED JUNE 30, 2019

Clovis North High School

ASSETS

Balance

July 1, 2018	Additions

Balance

Deductions	June 30, 2019

Cash on Hand and in Banks

LIABILITIES

Due to Student Groups Club Accounts
General ASB Accounts
Total Due to Student Groups

Clovis West High School ASSETS
Cash on Hand and in Banks

LIABILITIES

Due to Student Groups Club Accounts
General ASB Accounts
Total Due to Student Groups

Gateway Continuation School ASSETS
Cash on Hand and in Banks

LIABILITIES

Due to Student Groups

General ASB Accounts

$	296,624

$       136,015 160,609
$	296,624

$	89,024

$	107,841 (18,817)
$	89,024

$	19,465

$	19,465

$ 1,378,235

$       463,745 914,490
$ 1,378,235

$	659,635

$       139,492 520,143
$	659,635

$	9,275

$	9,275

$ 1,279,052	$

$       469,741       $ 809,311
$ 1,279,052	$

$	649,810	$

$       120,065       $ 529,745
$	649,810	$

$	7,642	$

$	7,642	$

395,807

130,019 265,788 395,807

98,849

127,268 (28,419)
98,849

21,098

21,098

See accompanying note to supplementary information.

102

CLOVIS UNIFIED SCHOOL DISTRICT

COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES STUDENT BODY FUNDS
HIGH SCHOOLS, Continued
FOR THE YEAR ENDED JUNE 30, 2019

Balance

July 1, 2018	Additions Totals
ASSETS

Balance

Deductions	June 30, 2019

Cash on Hand and in Banks

LIABILITIES

Due to Student Groups Club Accounts
General ASB Accounts
Total Due to Student Groups

$ 1,201,979

$       588,848 613,131
$ 1,201,979

$ 4,206,522

$ 1,128,434 3,078,088
$ 4,206,522

$ 4,100,979	$

$ 1,091,179	$ 3,009,800
$ 4,100,979	$

1,307,522

626,103 681,419
1,307,522

See accompanying note to supplementary information.

103

CLOVIS UNIFIED SCHOOL DISTRICT

COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES STUDENT BODY FUNDS
INTERMEDIATE SCHOOLS
FOR THE YEAR ENDED JUNE 30, 2019

Alta Sierra Intermediate School

ASSETS

Balance

July 1, 2018	Additions

Balance

Deductions	June 30, 2019

Cash on Hand and in Banks

LIABILITIES

Due to Student Groups Club Accounts General ASB Accounts
Total Due to Student Groups

C. Todd Clark Intermediate School ASSETS
Cash on Hand and in Banks

LIABILITIES

Due to Student Groups Club Accounts General ASB Accounts
Total Due to Student Groups

Kastner Intermediate School ASSETS
Cash on Hand and in Banks

LIABILITIES

Due to Student Groups Club Accounts General ASB Accounts
Total Due to Student Groups

$	81,123	$

$	22,796	$ 58,327
$	81,123	$

$	53,053	$

$	 (1,699)	$ 54,752
$	53,053	$

$	89,114	$

$	28,607	$ 60,507
$	89,114	$

242,896	$

41,519	$ 201,377 242,896	$

183,853	$

56,470	$ 127,383 183,853	$

167,403	$

84,108	$ 83,295
167,403	$

229,047	$

44,755	$ 184,292 229,047	$

197,524	$

51,122	$ 146,402 197,524	$

156,262	$

71,614	$ 84,648
156,262	$

94,972

19,560 75,412 94,972

39,382

3,649 35,733 39,382

100,255

41,101 59,154
100,255

See accompanying note to supplementary information.

104

CLOVIS UNIFIED SCHOOL DISTRICT

COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES STUDENT BODY FUNDS
INTERMEDIATE SCHOOLS, Continued FOR THE YEAR ENDED JUNE 30, 2019

Reyburn Intermediate School

ASSETS

Balance

July 1, 2018	Additions

Balance

Deductions	June 30, 2019

Cash on Hand and in Banks

LIABILITIES

Due to Student Groups Club Accounts General ASB Accounts
Total Due to Student Groups

Totals ASSETS
Cash on Hand and in Banks

LIABILITIES

Due to Student Groups Club Accounts General ASB Accounts
Total Due to Student Groups

$	75,084	$

$	25,792	$ 49,292
$	75,084	$

$	298,374	$

$         75,585       $ 222,789
$	298,374	$

127,399	$

16,403	$ 110,996 127,399	$

721,551	$

198,500	$ 523,051
721,551	$

128,816	$

22,062	$ 106,754 128,816	$

711,649	$

189,553	$ 522,096
711,649	$

73,667

20,133 53,534 73,667

308,276

84,532 223,744
308,276

See accompanying note to supplementary information.

105

CLOVIS UNIFIED SCHOOL DISTRICT

COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES STUDENT BODY FUNDS
ELEMENTARY SCHOOLS
FOR THE YEAR ENDED JUNE 30, 2019

Balance

ELEMENTARY SCHOOL	July 1, 2018	Additions

Balance

Deductions	June 30, 2019

Boris Bud Rank
Cedarwood Century
Clovis Elementary Cole
Copper Hills Dry Creek Fancher Creek Fort Washington Freedom Fugman Garfield Gettysburg Jefferson Liberty
Lincoln Maple Creek Mickey Cox Miramonte
Mountain View Nelson
Oraze Pinedale Reagan Red Bank Riverview Sierra Vista Tarpey
Temperance-Kutner Valley Oak
Weldon Woods
Total

$             6,215 9,801
21,476 16,442 24,137 21,115 16,999 6,820 29,195 4,938 27,191 64,431 9,240 31,693 14,848 10,587 18,484 24,886 15,908 16,026 39,809 10,860 41,698 2,107 4,060 53,325 34,698 9,280 17,106 30,590 13,030 13,527 21,536
$	682,058

$            73,563 87,328 107,134 82,849
81,088 95,364 82,740 120,389 98,258 63,938 116,201 150,307 116,183 89,451 76,241 74,289 57,474 50,175 64,935 64,787 97,849 83,298 100,063 33,174 107,189 166,001 118,916 31,229 89,688 82,071 64,046 83,322 118,484
$	2,928,024

$	77,216	$ 90,832
117,613 84,318 82,251 96,818 87,730 120,223 100,427 60,545 114,041 137,032 110,631 86,048 74,642 69,424 63,743 57,676 64,055 66,141 108,579 83,914 91,729 31,337 99,549 160,359 108,275 35,021 97,434 81,928 66,096 85,306 118,688
$	2,929,621	$

2,562 6,297 10,997 14,973 22,974 19,661 12,009 6,986 27,026 8,331 29,351 77,706 14,792 35,096 16,447 15,452 12,215 17,385 16,788 14,672 29,079 10,244 50,032 3,944 11,700 58,967 45,339 5,488 9,360 30,733 10,980 11,543 21,332
680,461

See accompanying note to supplementary information.

106

CLOVIS UNIFIED SCHOOL DISTRICT

NOTE TO SUPPLEMENTARY INFORMATION JUNE 30, 2019

NOTE 1 - PURPOSE OF SCHEDULES

Schedule of Expenditures of Federal Awards

The accompanying Schedule of Expenditures of Federal Awards includes the Federal grant activity of the District and is presented on the modified accrual basis of accounting. The information in this schedule 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. The District has not elected to use the ten percent de minimis cost rate as covered in Section 200.414 Indirect (F&A) costs of the Uniform Guidance.

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. 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 46206.

Districts must maintain their instructional minutes at the 1986-1987 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.

107

CLOVIS UNIFIED SCHOOL DISTRICT

NOTE TO SUPPLEMENTARY INFORMATION JUNE 30, 2019

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.

Agency Funds - Combining Balance Sheet and Statement of Changes in Assets and Liabilities

For each school site with an Associated Student Body (ASB), this schedule discloses the school site's individual ASB account balance. The total reported reconciles to the amount reported on the Fiduciary Funds - Statement of Net Position.

108

INDEPENDENT AUDITOR'S REPORTS

109

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

Governing Board
Clovis Unified School District Clovis, California

We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statementsof 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, 2019, and the related notes to the financial statements, which collectively comprise Clovis Unified School District's basic financial statements, and have issued our report thereon dated December 4, 2019.

Internal Control over Financial Reporting

In planning and performing our audit of the financial statements, we considered Clovis Unified School District's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Clovis Unified School District's internal control. Accordingly, we do not express an opinion on the effectiveness of Clovis Unified School District's internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the District'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.

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 may exist that have not been identified.

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

Compliance and Other Matters

As part of obtaining reasonable assurance about whether Clovis Unified School District's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. 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 Entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Fresno, California December 4, 2019

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INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE

Governing Board
Clovis Unified School District Clovis, California

Report on Compliance for Each Major Federal Program

We have audited Clovis Unified School District's (the District) compliance with the types of compliance requirementsdescribed in the OMB Compliance Supplement that could have a direct and material effect on each of Clovis Unified School District's major Federal programs for the year ended June 30, 2019. Clovis Unified School District's major Federal programs are identified in the summary of auditor's results section of the accompanying Schedule of Findings and Questioned Costs.

Management's Responsibility

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

Auditor's Responsibility

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

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

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

Opinion on Each Major Federal Program

In our opinion, Clovis Unified School District complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major Federal programs for the year ended June 30, 2019.

Report on Internal Control over Compliance

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

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

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

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

Fresno, California December 4, 2019

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INDEPENDENT AUDITOR'S REPORT ON STATE COMPLIANCE

Governing Board
Clovis Unified School District Clovis, California

Report on State Compliance

We have audited Clovis Unified School District's (the District) compliance with the types of compliance requirements as identified in the 2018-2019 Guide for Annual Audits of K-12 Local Education Agencies and State Compliance Reporting that could have a direct and material effect on each of the Clovis Unified School District's State government programs as noted below for the year ended June 30, 2019.

Management's Responsibility

Management is responsible for compliance with the requirements of State laws, regulations, and the terms and conditions of its State awards applicable to its State programs.

Auditor's Responsibility

Our responsibility is to express an opinion on compliance of each of the Clovis Unified School District's State programs based on our audit of the types of compliance requirements referred to above. We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the 2018-2019 Guide for Annual Audits of K-12 Local Education Agencies and State Compliance Reporting. These standards require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the compliance requirements referred to above that could have a material effect on the applicable government programs noted below. An audit includes examining, on a test basis, evidence about Clovis Unified School District's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinions. Our audit does not provide a legal determination of Clovis Unified School District's compliance with those requirements.

Unmodified Opinion

In our opinion, Clovis Unified School District complied, in all material respects, with the compliance requirements referred to above that are applicable to the government programs noted below that were audited for the year ended June 30, 2019.

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

In connection with the audit referred to above, we selected and tested transactions and records to determine the Clovis Unified School District's compliance with the State laws and regulations applicable to the following items:

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 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

SCHOOL DISTRICTS, COUNTY OFFICES OF EDUCATION, AND CHARTER SCHOOLS
California Clean Energy Jobs Act

After/Before School Education and Safety Program: General Requirements
After School Before School
Proper Expenditure of Education Protection Account Funds Unduplicated Local Control Funding Formula Pupil Counts Local Control Accountability Plan
Independent Study - Course Based

CHARTER SCHOOLS Attendance
Mode of Instruction

Non Classroom-Based Instruction/Independent Study for Charter Schools Determination of Funding for Non Classroom-Based Instruction
Annual Instruction Minutes Classroom-Based

Charter School Facility Grant Program

Procedures Performed

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

Yes

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

Yes

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

No (see below)

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We did not perform procedures for Independent Study because the independent study ADA was under the level that requires testing.

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.

The District does not have any Juvenile Court Schools; therefore, we did not perform procedures related to Juvenile Court Schools.

The District does not have any Middle or Early College High Schools; therefore, we did not perform procedures related to Middle or Early College High Schools.

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

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

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.

We did not perform procedures for the Charter Schools Mode of Instruction or Annual Instruction Minutes Classroom-Based because the District's charter school is entirely non-classroom based.

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

Fresno, California December 4, 2019

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SCHEDULE OF FINDINGS AND QUESTIONED COSTS

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CLOVIS UNIFIED SCHOOL DISTRICT

SUMMARY OF AUDITOR'S RESULTS FOR THE YEAR ENDED JUNE 30, 2019

FINANCIAL STATEMENTS Type of auditor's report issued:
Internal control over financial reporting: Material weakness identified? Significant deficiency identified?
Noncompliance material to financial statements noted?

FEDERAL AWARDS

Internal control over major Federal programs: Material weakness identified?
Significant deficiency identified?

Type of auditor's report issued on compliance for major Federal programs:

Any audit findings disclosed that are required to be reported in accordance with Section 200.516(a) of the Uniform Guidance?
Identification of major Federal programs:

Unmodified

No None reported
No

No None reported
Unmodified

No

CFDA Numbers 10.553, 10.555, 10.559
84.367

Name of Federal Program or Cluster Child Nutrition Cluster
Title II, Part A, Supporting Effective Instruction

Dollar threshold used to distinguish between Type A and Type B programs:

Auditee qualified as low-risk auditee?

$	968,859

Yes

STATE AWARDS

Type of auditor's report issued on compliance for programs:	Unmodified

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CLOVIS UNIFIED SCHOOL DISTRICT

FINANCIAL STATEMENT FINDINGS FOR THE YEAR ENDED JUNE 30, 2019

None reported.

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CLOVIS UNIFIED SCHOOL DISTRICT

FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2019

None reported.

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CLOVIS UNIFIED SCHOOL DISTRICT

STATE AWARDS FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2019

None reported.

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CLOVIS UNIFIED SCHOOL DISTRICT

SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS FOR THE YEAR ENDED JUNE 30, 2019

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

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