CLOVIS UNIFIED SCHOOL DISTRICT

FRESNO COUNTY CLOVIS, CALIFORNIA

ANNUAL FINANCIAL STATEMENTS WITH REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT

JUNE 30, 2014

CLOVIS UNIFIED SCHOOL DISTRICT TABLE OF CONTENTS JUNE 30, 2014

PAGE

INTRODUCTORY SECTION

TABLE OF CONTENTS	i

FINANCIAL SECTION

INDEPENDENT AUDITOR'S REPORT	1

MANAGEMENT’S DISCUSSION AND ANALYSIS	4

BASIC FINANCIAL STATEMENTS

Government-Wide Financial Statements: Statement of Net Position
Statement of Activities Fund Financial Statements:
Balance Sheet - Governmental Funds Reconciliation of the Governmental Funds Balance
Sheet to the Statement of Net Position Statement of Revenues, Expenditures, and Changes
In Fund Balances - Governmental Funds Reconciliation of the Governmental Funds Statement of
Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities
Statement of Net Position - Proprietary Fund Statement of Revenues, Expenditures, and Changes in
Fund Net Position - Proprietary Fund Statement of Cash Flows - Proprietary Fund
Statement of Assets and Liabilities - Fiduciary Funds

Exhibit A                     14 Exhibit B                     15

Exhibit C	16

Exhibit D	17

Exhibit E	18

Exhibit F                      19 Exhibit G                     20

Exhibit H	21 Exhibit I	22 Exhibit J	23

NOTES TO FINANCIAL STATEMENTS	24

REQUIRED SUPPLEMENTARY INFORMATION SECTION

Budgetary Comparison Schedule - General Fund	55 Other Postemployment Benefits (OPEB)
Schedule of Funding Progress	56

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CLOVIS UNIFIED SCHOOL DISTRICT TABLE OF CONTENTS JUNE 30, 2014

PAGE

SUPPLEMENTARY INFORMATION SECTION

COMBINING FINANCIAL STATEMENTS - NONMAJOR

Special Revenue Funds - Nonmajor Combining Balance Sheet
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances

Debt Service Fund - Nonmajor Balance Sheet
Statement of Revenues, Expenditures, and Changes in Fund Balance

Capital Projects Funds - Nonmajor Combining Balance Sheet
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances

Agency Funds
Combining Statement of Assets and Liabilities - Agency Funds Combining Statement of Assets and Liabilities - Student Body Funds Combining Statement of Changes in Assets and
Liabilities - Student Body Funds
Combining Statement of Assets and Liabilities - High Schools Combining Statement of Changes in Assets and
Liabilities - High Schools
Combining Statement of Assets and Liabilities - Intermediate Schools Combining Statement of Changes in Assets and
Liabilities - Intermediate Schools Combining Statement of Changes in Assets and
Liabilities - Elementary Schools

Statement 1	57

Statement 2	58

Statement 3	59

Statement 4	60

Statement 5	61

Statement 6	62

Statement 7                  63 Statement 8                  64

Statement 9                  65 Statement 10                66

Statement 11                67 Statement 12                69

Statement 13	70

Statement 14	72

SUPPLEMENTARY SCHEDULES

Governing Board and Organization Schedule of Average Daily Attendance Schedule of Instructional Time
Schedule of Financial Trends and Analysis Schedule of Expenditures of Federal Awards
Reconciliation of Annual Financial and Budget Report Form with Audited Financial Statements
Schedule of Charter Schools

Schedule 1	73 Schedule 2	74 Schedule 3	75 Schedule 4	76 Schedule 5	77

Schedule 6                   79 Schedule 7                   80

NOTES TO SUPPLEMENTARY INFORMATION	81

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CLOVIS UNIFIED SCHOOL DISTRICT TABLE OF CONTENTS JUNE 30, 2014

PAGE

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	82

REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM
AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE	84

INDEPENDENT AUDITOR'S REPORT ON STATE COMPLIANCE	86

FINDINGS AND RECOMMENDATIONS SECTION

SCHEDULE OF AUDIT FINDINGS AND QUESTIONED COSTS	88

STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS	90

iii

Financial Section

JLG

Jeanette L. Garcia & Associates 1980 Orange Tree Lane, Suite 280
Redlands, CA 92374 Phone: (909) 335-6100 Fax: (909) 335-6122 www.jlgcpa.net

INDEPENDENT AUDITOR’S REPORT

Jeanette L. Garcia, CPA

To the Governing Board Clovis Unified School District Clovis, California

Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Clovis Unified School District, as of and for the year ended June 30, 2014, and the related notes to the financial statements, which collectively comprise the Clovis Unified School District’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements

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

Auditor’s Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

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

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

Member:

American Institute of Certified Public Accountants

California Society of Certified Public Accountants

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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, 2014, 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 4 through 13, General Fund Budgetary Comparison Schedule on page 55 and Other Postemployment Benefits Schedule of Funding Progress on page 56 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 combining and individual nonmajor fund financial statements and schedule of expenditures of federal awards, as required by Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations are presented for purposes of additional analysis and are not a required part of the basic financial statements. The accompanying other supplemental information is presented for purposes of additional analysis as required by the State’s audit guide, Standards and Procedures for Audits of California K-12 Local Education Agencies 2013-14, published by the Education Audit Appeals Panel, and is also not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements, other supplementary information and the schedule of expenditures of federal awards, as required by Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements, other supplementary information and the schedule of expenditures of federal awards, as required by Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

2

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated December 5, 2014, 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 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 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.

Redlands, California December 5, 2014

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CLOVIS UNIFIED SCHOOL DISTRICT Management’s Discussion and Analysis June 30, 2014

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, 2014.

FINANCIAL HIGHLIGHTS

The District continued its long history of implementing conservative budgets and proactively addressing the State of California’s fiscal crisis resulting in the District maintaining reserve levels well above the State’s minimum amount of two percent. The most significant adjustment to our government-wide financials is the change in the balance of our Capital Assets, which improved over $63 million. That change was primary related to site purchases and construction.

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, 2014

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

5

CLOVIS UNIFIED SCHOOL DISTRICT Management’s Discussion and Analysis June 30, 2014

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
	
Entire District, except fiduciary activities
	
The activities of the District that are not proprietary or fiduciary, such as special education and building maintenance
	
Instances in which the District administers resources on behalf of someone else, such as student body activities.

Required financial statements
	
•Statement of net position

•Statement of activities
	
•Balance sheet

•Statement of revenues, expenditures & changes in fund balances

•Reconciliation to government-wide financial statements
	
•Statement of fiduciary net position

•Statement of changes in fiduciary net position

Accounting basis and measurement focus
	
Accrual accounting and economic resources focus
	
Modified accrual accounting and current financial resources focus
	
Accrual accounting and economic resources focus

Type of asset/liability information
	
All assets and liabilities both financial and capital, short-term and long-term
	
Only assets expected to be used up and liabilities that come due during the year or soon thereafter; no capital assets included
	
All assets and liabilities, both short-term and long-term; standard funds do not currently contain nonfinancial assets, though they can

Type of inflow/outflow information
	
All revenues and expenses during year, regardless of when cash is received or paid
	
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
	
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, 2014

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.

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

Governmental funds - Most of the District’s basic services are included in governmental funds, which generally focus on (1) how cash and other financial assets, that can readily be converted to cash, flow in and out and (2) the balances left at year-end that are available for spending. Consequently, the governmental funds statements provide a detailed short-term view that helps the reader 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.

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 and a statement of changes in fiduciary net position. We exclude these activities from the government-wide financial statements because the District cannot use these assets to finance its operations.

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CLOVIS UNIFIED SCHOOL DISTRICT Management’s Discussion and Analysis June 30, 2014

FINANCIAL ANALYSIS OF THE DISTRICT AS A WHOLE

Net Position: The District’s combined net position was lower on June 30, 2014, than it was the year before, decreasing 8.5 percent to $406.2 million (See Table A-1).

Table A-1

Clovis Unified Net Position (in millions of dollars)

Governmental Activities

2013-14	2012-13

Percentage

Change

Current and Other Assets Capital Assets
Total Assets

Long-Term Debt Outstanding Other Liabilities
Total Liabilities

Net Investment in Capital Assets Restricted
Unrestricted

Total Net Position

$	247.2	$	270.9	(8.7) 751.1                         687.8                           9.2 998.3                         958.7                           4.1

494.5                         428.7                         15.3 97.6                           85.9                         13.6 592.1                         514.6                         15.1

454.2	408.4	11.2 111.8	124.0                          (9.8)
(159.8)	(88.3)	81.0

$	406.2	$	444.1	(8.5)

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CLOVIS UNIFIED SCHOOL DISTRICT Management’s Discussion and Analysis June 30, 2014

Changes in net position: The District’s total revenues were $391.9 million (see Table A-2). Property taxes and state aid formula accounted for most of the District’s revenue, with state aid contributing about 53¢ of every dollar raised and property taxes contributing about 20¢ of every dollar raised. Another 16¢ came from categorical programs, capital grants 8¢, and the remainder from fees charged for services of 4¢ and miscellaneous sources of 6¢.

The total cost of all programs and services was $429.7 million (See Table A-2). The District’s expenses are predominantly related to educating and caring for students 75%. The purely administrative activities of the District accounted for just 6% of total costs. Maintenance and operations was $50.8 million, accounting for 12% of the District’s expenses. Expenses surpassed revenues, decreasing net position by $37.8 million over last year.

Revenues:

General Revenues:

Table A-2

Clovis Unified Net Position (in millions of dollars)

2013-14

Governmental Activities

2012-13

Percentage

Change

State Aid Formula Property Taxes Other
Program Revenues: Charges for Services Categorical Revenues Capital Grants
Total Revenues

$	207.4	$	192.8	7.6 79.0                               73.5	7.5 22.0                               25.9                           (15.1)

17.1                               14.3                             19.6 63.2                               59.7                               5.9
3.2	10.3	(68.9)

391.9	376.5	4.1

Expenses: Instruction Related Pupil Services
General Administration Plant Services
Other

Total Expenses

271.8	242.7	12.0 49.2                               37.6	30.9 25.9                               15.7	65.0 50.8                               39.1	29.9 32.0                               16.5	93.9
429.7	351.6	22.2

Increase (Decrease) in Net Position	$	(37.8)	$	24.9	(251.8)

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CLOVIS UNIFIED SCHOOL DISTRICT Management’s Discussion and Analysis June 30, 2014

GOVERNMENTAL ACTIVITIES

Revenues for the District’s governmental activities were $391.9 million, while total expenses were $429.7 million. The decrease in net position for governmental activities was $37.8 million in 2014.

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

Staffing formulas that maintain equality
Maintaining an awareness of fiscal issues and active participation from the Employee Compensation Committee and Employee Benefit Committee

Table A-3 presents the cost of six major District activities: instruction; student transportation services; all other pupil services; food services; general administration; 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

Net Cost of Clovis Unified Governmental Activities (in millions of dollars)

Cost of Services

2013-14 Fees & Aid Generated

Net Cost Of Services

Cost of Services

2012-13 Fees & Aid Generated

Net Cost of Services

Percentage Change

Instruction
Student Transportation All Other Pupil Services Food Services
General Administration Plant Services
Total

$      271.8        $        50.6        $      221.2 9.2                     -                     9.2
27.9	4.6	23.3 12.1                 11.8                   0.3 25.9	1.0	24.9 50.8	5.3	45.5
$	397.7	$	73.3	$	324.4

$      242.7        $        53.4        $     189.3                 16.9 7.0                   2.3                  4.7                 95.7
19.6                   4.2                15.4                 54.6 11.0                 12.3                 (1.3)              (76.9) 15.7                   1.3                14.4                 72.9 39.1                   4.1                35.0                 30.0
$	335.1	$	77.6	$     257.5	26.0

The cost of governmental activities this year was $429.7 million.

Some of the costs were paid by the users of the District’s programs ($17.1 million).

The federal and state governments subsidized certain programs with operating grants and contributions ($63.2 million).
Most of the District’s costs, $286.4 million, however, were paid for by District taxpayers and the taxpayers of California, in general.
Governmental activities were paid for with $79 million in property taxes, $207.4 million of unrestricted state aid based on the statewide education aid formula, and with investment earnings.

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CLOVIS UNIFIED SCHOOL DISTRICT Management’s Discussion and Analysis June 30, 2014

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.
The adopted budget’s revenues over expenditures resulted in the District anticipating to have a surplus of $0.2 million. The adopted budget was structured in such a way that the District could manage any changes from the State. Actual revenues to expenditures resulted in a deficit of $3.6 million, however $2.0 million of the fund balance is restricted for restricted program carryover and $1.6 million is assigned for local carryover and mandated block grant.

CAPITAL ASSET AND DEBT ADMINISTRATION

Capital Assets

By June 30, 2014, the District had invested $751.1 million in a broad range of capital assets, including school buildings, athletic facilities, computer and audio-visual equipment, and administrative offices (See Table A-4). This amount represents a net increase of $63.3 million or 9.2% from last year. Total depreciation expense for the year exceeded $21.3 million.

Table A-4 - Capital Assets, net of depreciation (in millions of dollars)

Governmental Activities

2013-14	2012-13

Percentage

Change

Land

Site Improvements Construction in Progress Buildings
Furniture and Equipment

Total

$	77.3	$	58.9	31.2 49.8                                      52.6                                       (5.3) 73.2                                      59.1	23.9
509.3                                    500.6                                        1.7 41.5                                      16.6                                    150.0

$	751.1	$	687.8	9.2

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CLOVIS UNIFIED SCHOOL DISTRICT Management’s Discussion and Analysis June 30, 2014

The District has work in progress related to modernization projects at fourteen school sites, a district-wide video surveillance project and expansion of the District’s main warehouse. In addition to the work in progress, the District has plans to begin modernizations at an additional eleven school sites, construct a new Technology Service Center, a new Elementary School, and a new Career Technical Education building in 2014-15. The projects will primarily be funded with revenue from Measure A and augmented with Developer Fees, State bond funds, and interest on investments.

In 2014-15, the District projects spending another $64 million on above mentioned work in progress projects. The projects scheduled to commence in 2014-15 are projected to cost $88 million in their entirety.

ALL DEBT/LONG-TERM DEBT

At year-end, the District had $494.5 million in general obligation bonds and other long-term debt. This is an increase of 15.3% from last year, as shown in Table A-5.

Table A-5

Clovis Unified Outstanding Long-Term Debt (in millions of dollars)

Governmental Activities

2013-14	2012-13

Percentage

Change

General Obligation Bonds Postemployment Benefits Compensated Absences Certificates of Participation Child Development Portables Capital Lease Agreements Golden Handshake

Total

$          282.7                         $          254.3                                       11.2 194.6                                     146.5                                       32.8
1.8                                         1.7                                         5.9 11.1                                       21.9                                     (49.3)
0.4	0.5	(20.0) 2.8	2.7                                         3.7 1.1	1.1                                          -

$	494.5	$	428.7	15.3

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CLOVIS UNIFIED SCHOOL DISTRICT Management’s Discussion and Analysis June 30, 2014

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 2013-14 fiscal year is the first year of the Local Control Funding Formula (LCFF). The LCFF attempts to fund students based on their need based on their needs related to household income, second language learner, or foster youth. The LCFF will provide additional funding for Clovis Unified School District over the eight year implementation; however, Clovis Unified School District will not receive as much additional funding as the vast majority of its neighboring districts due to its lower percentage of students who are eligible for additional funding.
Enrollment growth and student attendance is key to the District’s financial projections. The continued improvement of the economy within the State of California.
Planned decrease in the deferral of State funded programs.

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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EXHIBIT A CLOVIS UNIFIED SCHOOL DISTRICT
STATEMENT OF NET POSITION JUNE 30, 2014

GOVERNMENTAL

ASSETS
Cash and Cash Equivalents (Note 2) Accounts Receivable (Note 3) Inventory
Prepaid Expenses
Total Current Assets

ACTIVITIES

$              192,967,762 50,876,372
2,196,834 1,174,928 247,215,896

Capital Assets: (Note 6) Land
Site Improvements Buildings
Furniture and Equipment Work in Progress
Less Accumulated Depreciation Total Capital Assets

TOTAL ASSETS

LIABILITIES

Accounts Payable and Other Current Liabilities Unearned Revenue
Total Current Liabilities

Long-Term Liabilities (Note 15)

Portion due or payable within one year Portion due or payable after one year
Total Long-Term Liabilities

TOTAL LIABILITIES

NET POSITION
Net Investment in Capital Assets Restricted for:
Capital Projects Debt Service
Educational Programs
Other Purposes (expendable) Other Purposes (nonexpendable)
Unrestricted

77,329,721 111,304,252 687,234,173 66,389,887 73,237,481
(264,386,166) 751,109,348

998,325,244

96,434,750 1,108,956 97,543,706

22,013,652 472,541,567 494,555,219

592,098,925

454,160,008

58,748,678 32,467,023 1,955,928 15,176,915 3,547,714
(159,829,947)

TOTAL NET POSITION	$	406,226,319

The Notes to Financial Statements are an integral part of this statement.

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EXHIBIT B CLOVIS UNIFIED SCHOOL DISTRICT
STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED JUNE 30, 2014

Activities Governmental:

Charges for Expenses	Services

Operating Grants and Contributions

Capital Grants and Contributions

Total Governmental Activities

Instruction
Instruction-Related Services: Supervision of Instruction
Instructional Library, Media, and Technology School Site Administration
Pupil Services:
Home-to-School Transportation Food Services
All Other Pupil Services General Administration:
Data Processing
All Other General Administration Plant Services
Ancillary Services Community Services Enterprise Activities Interest on Long-Term Debt Other Outgo

$	208,269,714

24,803,304 7,950,699 30,785,152

9,208,648 12,090,795 27,903,102

3,939,247 21,980,195 50,839,250 11,236,024 1,101,974 6,126,708 12,819,175 689,340

$	242,072

78,201 --

-3,941,178 12,821

-210,083
4,471,123 ----
8,192,049

$ 33,660,653

12,958,590 465,258 3,857

-7,818,595 4,623,761

-852,309 823,090 -
---
2,000,830

$	3,231,557

---

---

--------

$     (171,135,432)

(11,766,513) (7,485,441) (30,781,295)

(9,208,648) (331,022) (23,266,520)

(3,939,247) (20,917,803) (45,545,037) (11,236,024) (1,101,974) (6,126,708) (12,819,175)
9,503,539

Total Governmental Activities	$	429,743,327	$ 17,147,527	$ 63,206,943	$	3,231,557	(346,157,300)

General Revenues: Taxes:
Property Taxes, levied for general purposes Property Taxes, levied for debt service
Property Taxes, levied for other specific purposes Federal and State Aid not restricted to specific purposes Interest and Investment Earnings
Interagency Revenues Miscellaneous
Total General Revenues

Change in Net Position

Net Position - July 1, 2013

Net Position - June 30, 2014

49,685,569 29,167,342 95,928 207,405,115 1,417,929 955,244 19,584,177 308,311,304

(37,845,996)

444,072,315

$	406,226,319

The Notes to Financial Statements are an integral part of this statement.

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EXHIBIT C CLOVIS UNIFIED SCHOOL DISTRICT
BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2014

ASSETS

Cash (Note 2)

GENERAL

FUND

BUILDING

FUND

SCHOOL FACILITIES
FUND

BOND INTEREST AND REDEMPTION
FUND

ALL OTHER GOVERNMENTAL
FUNDS

TOTAL GOVERNMENTAL
FUNDS

Cash in County Treasury Cash on Hand and in Banks Cash in Revolving Fund Cash with Fiscal Agent
Accounts Receivable (Note 3) Due from Grantor Government Due from Other Funds (Note 4A) Inventory
Prepaid Expenditures

TOTAL ASSETS

LIABILITIES AND FUND BALANCES Liabilities
Accounts Payable

Due to Other Funds (Note 4A) Unearned Revenue

Total Liabilities

Fund Balances (Note 5) Nonspendable Restricted Committed
Assigned Unassigned

Total Fund Balances

TOTAL LIABILITIES AND

FUND BALANCES

$        40,954,314 3,070,136 144,000
36,200 44,750,806 -
6,318,992 1,925,860 1,019,228

$	98,219,536

$        37,218,011 7,525,033 723,312

45,466,356

3,089,087 1,955,928 -1,569,213
46,138,952

52,753,180

$	98,219,536

$	48,925,852	$ -
--
183,507 -
65,526 --

$	49,174,885	$

$         5,736,077       $ 5,261,541
-

10,997,618

-38,177,267 -
--

38,177,267

$	49,174,885	$

3,673,104	$ -
--
36,807 -
5,259,954 --

8,969,865	$

8,814,188	$ 41,914
-

8,856,102

----
113,763

113,763

8,969,865	$

31,390,204	$ -
--
61,059 ----

31,451,263	$

-	$ -
-

-

----
31,451,263

31,451,263

31,451,263	$

29,335,326	$ 3,654,154
3,500 -
1,319,984 1,252,599 1,454,582 270,974 155,700

37,446,819	$

571,201	$ 1,014,651
385,644

1,971,496

458,627 30,230,627 2,023,024 2,763,045 -

35,475,323

37,446,819	$

154,278,800 6,724,290 147,500 36,200 46,352,163 1,252,599 13,099,054 2,196,834 1,174,928

225,262,368

52,339,477 13,843,139 1,108,956

67,291,572

3,547,714 70,363,822 2,023,024 4,332,258 77,703,978

157,970,796

225,262,368

The Notes to Financial Statements are an integral part of this statement.

16

EXHIBIT D CLOVIS UNIFIED SCHOOL DISTRICT
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION JUNE 30, 2014

Total Fund Balances - Governmental Funds	$	157,970,796

Amounts reported for governmental activities in the statement of net position are different because:

In governmental funds, only current assets are reported. In the statement of net position, all assets are reported, including capital assets and accumulated depreciation. The cost of the assets is $1,015,495,514 and accumulated depreciation is $264,386,166.

In governmental funds, interest on long-term debt is not recognized until the period in which it matures and is paid. In the government-wide statement of activities, it is recognized in the period it is incurred.
The additional liability for unmatured interest owing at the end of the period was:

751,109,348

(8,316,250)

In governmental funds, only current liabilities are reported. In the statement of net position, all liabilities, including long-term liabilities, are reported. Long-term liabilities at year-end consist of:

General Obligation Bonds Certificates of Participation Postemployment Benefits Compensated Absences Capital Leases
Other (SERP & Child Development)

$ 282,760,492 11,068,005 194,682,972 1,848,674 2,753,625
1,441,451	(494,555,219)

Internal service funds are used to conduct certain activities for which costs are charged to other funds. Because internal service funds are presumed to operate for the benefit of governmental activities, assets
and liabilities of internal service funds are reported with governmental activities.	17,642

Adjustment for Rounding	2

Total Net Position - Governmental Activities	$	406,226,319

The Notes to Financial Statements are an integral part of this statement.

17

EXHIBIT E CLOVIS UNIFIED SCHOOL DISTRICT
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2014

REVENUES

Local Control Fund Formula

GENERAL

FUND

BUILDING

FUND

SCHOOL FACILITIES
FUND

BOND INTEREST AND REDEMPTION
FUND

ALL OTHER GOVERNMENTAL
FUNDS

TOTAL GOVERNMENTAL
FUNDS

State Apportionments Local Sources
LCFF Transfers

Total LCFF Sources

Federal Revenues Other State Revenues Other Local Revenues

Total Revenues

EXPENDITURES Instruction
Instruction-Related Services: Supervision of Instruction
Instructional Library, Media and Technology School Site Administration
Pupil Services:

Home-to-School Transportation Food Services
All Other Pupil Services General Administration:
Data Processing

All Other General Administration Plant Services
Facilities Acquisition and Construction Ancillary Services
Other Outgo Debt Service: Principal Interest

Total Expenditures

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES

OTHER FINANCING SOURCES (USES) Interfund Transfers In (Note 4B) Interfund Transfers Out (Note 4B) Proceeds from Sale of Bonds
Proceeds from Capital Leases

Total Other Financing Sources (Uses)

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES AND
OTHER FINANCING SOURCES (USES)

FUND BALANCE - JULY 1, 2013

FUND BALANCE - JUNE 30, 2014

$	199,547,532	$ 49,685,570
(407,849) 248,825,253

15,036,105 39,397,945 15,441,337

318,700,640

178,758,550

20,486,938 4,321,379 20,802,060

8,319,607 29,072 20,328,111

2,213,071 13,821,054 36,291,828 476,112 6,321,406 680,914

951,696 21,626

313,823,424

4,877,216

1,690,470 (11,127,883)
-930,000

(8,507,413)

(3,630,197)

56,383,377

$	52,753,180	$

-       $ -
--

--
966,231

966,231

-

---

---

--
213,514 37,419,158 -10,262,246

1,425,090 481,625

49,801,633

(48,835,402)

11,695,445 (37,025,261) 49,996,579
-

24,666,763

(24,168,639)

62,345,906

38,177,267       $

-       $ -
--

-3,231,557 118,127

3,349,684

-

---

---

---
42,950,897 --

--

42,950,897

(39,601,213)

36,752,330 ---

36,752,330

(2,848,883)

2,962,646

113,763       $

-       $ -
--

-345,310
29,035,018

29,380,328

-

---

---

------

21,559,066 10,282,925

31,841,991

(2,461,663)

-(1,257,149)
--

(1,257,149)

(3,718,812)

35,170,075

31,451,263       $

2,079,699       $ -
407,849 2,487,548

9,166,687 3,289,876 34,810,155

49,754,266

10,459,900

2,052,080 63,918 1,551,378

-11,677,842 439,241

-1,082,008 2,746,382 2,971,087 -
-

9,928,323 433,921

43,406,080

6,348,186

5,010,371 (11,738,323)
--

(6,727,952)

(379,766)

35,855,089

35,475,323       $

201,627,231 49,685,570 -251,312,801

24,202,792 46,264,688 80,370,868

402,151,149

189,218,450

22,539,018 4,385,297 22,353,438

8,319,607 11,706,914 20,767,352

2,213,071 14,903,062 39,251,724 83,817,254 6,321,406 10,943,160

33,864,175 11,220,097

481,824,025

(79,672,876)

55,148,616 (61,148,616) 49,996,579
930,000

44,926,579

(34,746,297)

192,717,093

157,970,796

The Notes to Financial Statements are an integral part of this statement.

18

EXHIBIT F 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 FISCAL YEAR ENDED JUNE 30, 2014

Total Net Change in Fund Balances - Governmental Funds	$	(34,746,297)

Amounts reported for governmental activities in the statement of activities are different because:

Capital outlays are reported in the governmental funds as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlays of $84,662,315 exceed depreciation expense of $21,304,937 in the period.

In governmental funds, interest on long-term debt is recognized in the period it becomes due. In the government-wide statement of activities, it is recognized in the period that it is incurred.

Repayment of long-term debt is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position.

In governmental funds, proceeds from debt are recognized as other financing sources. In the government-wide statements, proceeds from debt are reported as increases to liabilities. Amounts recognized in the governmental funds as proceeds from debt, net of issue premium or discount, were:

In the statement of activities, compensated absences (vacation) and postemployment benefits are measured by the amount 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).

The activities of the Internal Service Fund were incorporated into the government-wide statements, but the Internal Service Fund is not included as a governmental fund.

If a planned project is canceled and will not be completed, costs previously capitalized as Work in Progress must be written off to expense.

In governmental funds, the entire proceeds from disposal of assets are reported as revenue. In the statement of activities, only the resulting gain or loss is reported.

Adjustment for Rounding

63,357,378

(1,599,078)

33,366,169

(50,926,579)

(47,241,109)

(4,572)

(5,865)

(46,046)

3

Change in Net Position of Governmental Activities	$	(37,845,996)

The Notes to Financial Statements are an integral part of this statement.

19

EXHIBIT G CLOVIS UNIFIED SCHOOL DISTRICT
STATEMENT OF NET POSITION PROPRIETARY FUND JUNE 30, 2014

Governmental Activities Internal Service Fund

ASSETS

Cash (Note 2)

Cash in County Treasury Cash on Hand and in Banks
Accounts Receivable (Note 3)

Due from Other Funds (Note 4A)

$            29,797,698 1,983,274
270,724

3,623,303

TOTAL ASSETS

LIABILITIES Liabilities
Accounts Payable

35,674,999

35,657,358

NET POSITION

Unassigned (Note 5)	$	17,641

The Notes to Financial Statements are an integral part of this statement.

20

EXHIBIT H CLOVIS UNIFIED SCHOOL DISTRICT
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND NET POSITION PROPRIETARY FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014

Governmental

Operating Revenues

Local Revenue

Activities Internal Service Fund

$	46,811,616

Operating Expenses Classified Salaries Employee Benefits Books and Supplies
Services and Other Operating Expenses

Total Operating Expenses

Operating Loss

Nonoperating Revenues (Expenses) Interfund Transfer In (Note 4B)

Change in Net Position

Net Position - July 1, 2013

159,668 75,642 449
52,580,429

52,816,188

(6,004,572)

6,000,000

(4,572)

22,213

Net Position - June 30, 2014	$	17,641

The Notes to Financial Statements are an integral part of this statement.

21

EXHIBIT I CLOVIS UNIFIED SCHOOL DISTRICT
STATEMENT OF CASH FLOWS PROPRIETARY FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014

Governmental Activities Internal Service Fund

Cash Flows from Operating Activities Cash Received from Contributions Cash Received from General Fund Cash Paid for Salaries and Benefits Cash Paid for Supplies
Cash Paid for Other Operating Expenses

Cash Paid for Retiree Benefits

$       45,932,126 14,700,000
(235,310) (449) (2,143)
(52,375,409)

Net Cash Provided by Operating Activities

Cash Flows from Financing Activities

Operating Subsidies and Transfers from Other Funds

Net Increase in Cash

Cash - July 1, 2013

8,018,815

3,750,000

11,768,815

20,012,157

Cash - June 30, 2014	$	31,780,972

Reconciliation of Operating Loss to Net Cash Provided by Operating Activities

Operating Loss	$	(6,004,572)

Adjustments to Reconcile Operating Loss To Net Cash Provided by Operating Activities
Increase in Accounts Receivable Decrease in Due from Other Funds Increase in Accounts Payable

Total Adjustments

(256,188) 14,076,697
202,878

14,023,387

Net Cash Provided by Operating Activities	$	8,018,815

The Notes to Financial Statements are an integral part of this statement.

22

EXHIBIT J CLOVIS UNIFIED SCHOOL DISTRICT
STATEMENT OF ASSETS AND LIABILITIES FIDUCIARY FUNDS JUNE 30, 2014

ASSETS

Cash (Note 2)

Cash in County Treasury Cash on Hand and in Banks
Accounts Receivable Inventory

TOTAL ASSETS

LIABILITIES Accounts Payable
Due to Other Funds (Note A)

Due to Student Groups/Other Agencies

TOTAL LIABILITIES

AGENCY FUNDS

$             5,813,780 1,991,899
51,330 35,313

$	7,892,322

$		10,045 3,000,886 4,881,391

$	7,892,322

The Notes to Financial Statements are an integral part of this statement.

23

CLOVIS UNIFIED SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2014

1.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accounting policies of the Clovis Unified School District conform to accounting principles generally accepted in the United States of America as applicable to governments and to general practices within California school districts. The District accounts for its financial transactions in accordance with the policies and procedures of the Department of Education's California School Accounting Manual. The accounting policies of the District conform to accounting principles generally accepted in the United States of America as prescribed by the Governmental Accounting Standards Board and by the American Institute of Certified Public Accountants. The following is a summary of the significant accounting policies:

Fund Accounting

The accounts of the District are organized on the basis of funds or account groups, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund balance or retained earnings, revenues and expenditures or expenses, as appropriate. District resources are allocated to and accounted for in individual funds based upon the purpose for which they are to be spent and the means by which spending activities are controlled. The District accounts are organized into major, nonmajor, proprietary and fiduciary funds.

Major Governmental Funds:

General Fund is the general operating fund of the District. It is used to account for all financial resources except those required to be accounted for in another fund.

Building Fund is used to account for the acquisition of major governmental capital facilities and buildings from bond proceeds. The District maintains five of these funds.

School Facilities Fund is used to account for revenues and expenditures for School Facilities Program (SB 50) approved projects.

Bond Interest and Redemption Fund is used to account for the accumulation of resources for, and the repayment of District bonds, interest and related costs.

Non-major Governmental Funds:

Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes. The District maintains five nonmajor special revenue funds.

Charter School Fund is used to account for resources dedicated to charter school programs maintained by the District.

Adult Education Fund is used to account for resources dedicated to adult education programs maintained by the District.

Cafeteria Fund is used to account for revenues received and expenditures made to operate the District's food service operations.

Child Development Fund is used to account for resources dedicated to child development programs maintained by the District.

24

CLOVIS UNIFIED SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2014

Deferred Maintenance Fund is used for the purpose of major repair of District property.

Debt Service Funds are used to account for the accumulation of resources for, and the payment of general long-term debt principal, interest and related costs. The District maintains one nonmajor debt service fund.

The Central Valley School Districts Financing Corporation is used to account for the interest and redemption of principal of certificates of participation issued by the Central Valley School Districts Financing Corporation.

Capital Projects Funds are used to account for the acquisition and/or construction of all major governmental general fixed assets. The District maintains two nonmajor capital projects funds.

Capital Facilities Fund is used to account for resources received from developer fees.

Special Reserve Fund is used to account for the accumulation and expenditure of funds for capital outlay purposes, as established by the Board in accordance with Education Code Section 42840 et seq.

Proprietary Funds:

Internal Service Funds are used to account for services rendered on a cost reimbursement basis within the District. The District maintains one internal service fund, the Self Insurance Fund, which is used to account for the costs associated with retiree benefits.

Fiduciary Funds:

Agency Funds are used to account for assets held by the District as trustee. The District maintains the Warrant/Pass-Through Fund which is used to account for District payroll transactions. The District also maintains an agency fund for each school that operates an associated student body.

25

CLOVIS UNIFIED SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2014

Reporting Entity

Central Valley School Districts Financing Corporation

The Clovis Unified School District (the District) and the Central Valley School Districts Financing Corporation (the Corporation) have a financial and operational relationship which meets the reporting entity definition criteria of the GASB Statement No. 14, The Financial Reporting Entity, for inclusion of the Corporation as a component unit of the District. Accordingly, the financial activities of the Corporation have been included in the financial statements of the District. The Corporation is a nonprofit corporation organized under the General Nonprofit Corporation Law of the State of California. The Corporation was formed for the primary purpose of providing financing assistance to the District for construction, acquisition, improvement, and remodeling of public school buildings and facilities.

The District occupies all Corporation facilities under lease-purchase agreements effective through the years 2008 and 2017. At the end of the lease term, title of all Corporation property will pass to the District for no additional consideration.

The following are those aspects of the relationship between the District and the Corporation which satisfy GASB Statement No. 14 criteria.

Oversight Responsibility:

1.	The Corporation’s Board of Directors consists of two board members from Clovis Unified School District, two board members from Fresno Unified School District and the Fresno County Superintendent of Schools.

2.	The District is able to impose its will upon the Corporation, based on the following:

All major financing arrangements, contracts and other transactions of the Corporation completed on behalf of Clovis Unified School District must have the consent of the District.

The District exercises influence over the operations of the Corporation as it relates to Clovis Unified School District facilities. The District anticipates it will be the sole lessee of all school district facilities owned by the Corporation.

3.	The Corporation provides specific financial benefits or imposes specific financial burdens on the District based upon the following:

Any deficits incurred by the Corporation on behalf of the District will be reflected in the lease payments of the District.

Any surpluses of the Corporation generated on behalf of the District will revert to the District at the end of the lease period.

The District has assumed a financial, and potentially a legal obligation, for any debt incurred by the COPs issued on behalf of the School District.

26

CLOVIS UNIFIED SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2014

Financial Presentation:

For financial presentation purposes, the Corporation’s financial activity has been blended, or combined, with the financial data of the District. The financial statements present the Corporation’s financial activity within the Central Valley School Districts Financing Corporation Fund. Certificates of Participation issued by the Corporation are included in General Long-Term Debt.

Basis of Presentation

Government-wide Financial Statements:

The government-wide financial statements (i.e., the statement of net position and the statement of changes in net position) report information on all of the nonfiduciary activities of the District and its component units.

The government-wide statements are prepared using the economic resources measurement focus. This is the same approach used in the preparation of the proprietary fund and fiduciary fund financial statements but differs from the manner in which governmental fund financial statements are prepared. Governmental fund financial statements, therefore, include a reconciliation with brief explanations to better identify the relationship between the government-wide statements and the statements for the governmental funds.

The government-wide statement of activities presents a comparison between direct expenses and program revenues for each function or program of the District’s governmental activities. 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. Program revenues include charges paid by the recipients of goods or services offered by a program, as well as grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues which are not classified as program revenues are presented as general revenues of the District, with certain exceptions. The comparison of direct expenses with program revenues identifies the extent to which each governmental function is self-financing or draws from the general revenues of the District.

27

CLOVIS UNIFIED SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2014

Fund Financial Statements:

Fund financial statements report detailed information about the District. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major governmental fund is presented in a separate column, and all nonmajor funds are aggregated into one column. The Internal Service Fund is presented on the proprietary fund statements. Fiduciary funds are reported by fund type.

The accounting and financial treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a flow of current financial resources measurement focus. With this measurement focus, only current assets and current liabilities are generally included on the balance sheet. The Statement of Revenues, Expenditures, and Changes in Fund Balances for these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other uses) in net current assets.

All proprietary fund types are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and all liabilities associated with the operation of these funds are included on the proprietary fund’s Statement of Net Position. The Statement of Revenues, Expenses, and Changes in Fund Net Position for proprietary funds presents increases (i.e., revenues) and decreases (i.e., expenditures) 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 activities.

Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the internal service fund are charges to other funds for self-insurance costs. Operating expenses for internal service funds include the costs of insurance premiums and claims related to self-insurance.

Fiduciary funds are reported using the economic resources measurement focus.

Basis of Accounting

Basis of accounting refers to when revenues and expenditures, or expenses, are recognized in the accounts and reported in the financial statements. Government-wide financial statements are prepared using the accrual basis of accounting. Governmental funds use the modified accrual basis of accounting. Proprietary and fiduciary funds use the accrual basis of accounting.

28

CLOVIS UNIFIED SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2014

Revenues – exchange and non-exchange transactions:

Revenue resulting from exchange transactions, in which each party gives and receives essentially equal value, is recorded under 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 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. For the District, “available” means collectible within the current period or within 60 days after year-end.

Non-exchange transactions, in which the District receives value without directly giving equal value in return, include property taxes, grants, and entitlements. Under the accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from grants and entitlements is recognized in the fiscal year in which all eligibility requirements have been satisfied. Eligibility requirements include timing requirements, which specify the year when the resources are to be used or the fiscal year when use is first permitted; matching requirements, in which the District must provide local resources to be used for a specific purpose; and expenditure requirements, in which the resources are provided to the District on a reimbursement basis. Under the modified accrual basis, revenue from non-exchange transactions must also be available before it can be recognized.

Unearned Revenue:

Unearned revenue arises when assets are received before revenue recognition criteria have been satisfied. Grants received before eligibility requirements are met are recorded as unearned revenue. On governmental fund financial statements, receivables associated with non-exchange transactions that will not be collected within the availability period have also been recorded as unearned revenue.

Expenses/Expenditures:

On the accrual basis of accounting, expenses are recognized at the time a liability is incurred. On the modified accrual basis of accounting, expenditures are generally recognized in the accounting period in which the related fund liability is incurred, as under the accrual basis of accounting. However, under the modified accrual basis of accounting, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Allocations of cost, such as depreciation and amortization, are not recognized in the governmental funds.

When both restricted and unrestricted resources are available for use, it is the District’s policy to use restricted resources first, then unrestricted resources as they are needed.

29

CLOVIS UNIFIED SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2014

Budgets and Budgetary Accounting

Annual budgets are adopted on a basis consistent with generally accepted accounting principles for all governmental funds. By State law, the District's Governing Board must adopt a budget no later than July 1. A public hearing must be conducted to receive comments prior to adoption. The District's Governing Board satisfied these requirements.

These budgets are revised by the District's Governing Board during the year to give consideration to unanticipated income and expenditures. The final revised budget that is presented in the financial statements consists of the original Board approved documents plus all revisions.

Formal budgetary integration was employed as a management control device during the year for all budgeted funds. The District employs budget control by minor object and by individual appropriation accounts. Expenditures cannot legally exceed appropriations by major object account.

Accounting Estimates

The presentation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures (expenses) during the reporting period. Actual results could differ from those estimates.

Encumbrances

Encumbrance accounting is used in all budgeted funds to reserve portions of applicable appropriations for which commitments have been made. Encumbrances are recorded for purchase orders, contracts, and other commitments when they are written. Encumbrances are liquidated when the commitments are paid.

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.

Inventories

Inventory in the General Fund, Adult Fund and Cafeteria Fund consists mainly of expendable supplies held for consumption. Inventories are recorded using the consumption method, in that inventory acquisitions are initially recorded in inventory (asset) accounts, and the cost is recorded as an expenditure at the time individual inventory items are requisitioned. Inventories are valued on the weighted average method. Reported inventories are equally offset by a fund balance reserve which indicates that these amounts are not "available for appropriation and expenditure" even though they are a component of net current assets.

30

CLOVIS UNIFIED SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2014

Prepaid Expenditures

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 the expenditure during the benefiting period.

Capital Assets

Capital assets purchased or acquired with an original cost of $25,000 or more are reported at historical cost or estimated historical cost. Contributed assets are reported at fair market value as of the date received. Additions, improvements, and other capital outlays that significantly extend the useful life of an asset are capitalized. Other costs incurred for repairs and maintenance are expensed as incurred. Depreciation on all assets is provided on the straight-line basis over the following estimated useful lives:

Asset Class Athletic Equipment
Audio Visual Equipment Books and Multimedia Business Machines Communication Equipment Computer Equipment Computer Software Construction
Contractors Equipment Desktop
Furniture

Furniture - Hospital

Grounds and Maintenance Equipment Hospital Equipment
Kitchen Equipment Land
Land Improvements Laptop
Licensed Vehicles Machinery & Tools Musical Instruments Outdoor Equipment Portable Structures Printer
Scanner

Science and Engineering Server
Swimming Pools

Estimated Useful Life in Years 10 10 5 10 10 5 5 50 10 5 20 10 15 10 15
N/A 20 5 5 15 10 20 25 5 5 10 5
50

31

CLOVIS UNIFIED SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2014

Interfund Balances

On fund financial statements, receivables and payables resulting from short-term interfund loans are classified as “due to/from other funds.” These amounts are eliminated in the governmental activities columns of the statement of net position.

Compensated Absences

All vacation pay plus related payroll taxes are accrued when incurred in the government-wide financial statements. An expenditure for these amounts is reported in the governmental funds only if they have matured, for example, as a result of employee resignations and retirements.

Accumulated sick leave benefits are not recognized as liabilities of the District. The District's policy is to record sick leave as an operating expense in the period taken since such benefits do not vest nor is payment probable; however, unused sick leave is added to the creditable service period for calculation of retirement benefits when the employee retires.

Long-Term Obligations

In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the Statement of Net Position. Bonds payable are reported net of applicable bond premium or discount.

In the fund financial statements, governmental funds recognize bond premiums and discounts as well as bond issuance costs, during the current period. The face amount of the debt issued, premiums, or discounts is reported as other financing sources/uses.

Net Position in the Government-Wide Financial Statements

In the government-wide Statement of Net Position, the net position amount can be classified and displayed in three components:

Net Investment in Capital Assets – This consists of capital assets net of accumulated depreciation and reduced by any long term borrowings that are attributable to the acquisition, construction or improvement of those assets. Deferred outflows of resources and deferred inflows of resources that are attributable to the acquisition, construction, or improvement of those assets or related debt also should be included in this component of net position.
Restricted – This consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets.
Unrestricted – This consists of the net amount of the assets, deferred outflows of resources, liabilities and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position.

The District applies restricted resources when an expense is incurred for purposes for which both restricted and unrestricted resources are available.

32

CLOVIS UNIFIED SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2014

Fund Balance Reserves and Designations

The Governmental Accounting Standards Board (GASB) has issued Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions (GASB 54). This statement defines the different types of fund balances that a governmental entity must use for financial reporting purposes.

GASB 54 requires the fund balance amounts to be properly reported within the fund balance categories below:

Nonspendable – This is fund balance associated with revolving cash funds, inventories and prepaids. Restricted – This includes amounts that can be spent only for the specific purposes stipulated by constitution, external resource providers, or through enabling legislation.
Committed – This includes amounts that can be used only for the specific purposes determined by a formal action of the Governing Board (the District’s highest level of decision-making authority).
Assigned – These funds are intended to be used by the government (District) for specific purposes but do not meet the criteria to be classified as restricted or committed.
Unassigned – This is the residual classification for the General Fund and includes all spendable amounts not contained in the other classifications.

When fund balance resources are available for a specific purpose in multiple classifications, the District would use the most restrictive funds first.

Local Control Funding Formula/Property Tax

As a result of the 2013-14 state budget package, the District’s state apportionments are based on a new Local Control Funding Formula (LCFF). The LCFF creates base, supplemental, and concentration grants (by grade span) in place of most previously existing K-12 funding streams, including revenue limits and most state categorical programs. Full implementation of LCFF is estimated to be in fiscal year 2020-21. Until then, the District will receive approximately the same level of funding as in 2012-13, plus an additional amount each year to bridge the gap between current year funding and the LCFF target levels.

The county is responsible for assessing, collecting and apportioning property taxes. Taxes are levied for each fiscal year on taxable real and personal property in the county. The levy is based on the assessed values as of the preceding March 1, which is also the lien date. Property taxes on the secured roll are due on November 1 and February 1, and taxes become delinquent after December 10 and April 10, respectively. Property taxes on the unsecured roll are due on the lien date (March 1), and become delinquent if unpaid by August 31.

Secured property taxes are recorded as revenue when apportioned, in the fiscal year of the levy. The county apportions secured property tax revenue in accordance with the alternate method of distributions prescribed by Section 4705 of the California Revenue and Taxation Code. This alternate method provides for crediting each applicable fund with its total secured taxes upon completion of the secured tax roll – approximately October 1 of each year.

The County Auditor reports the amount of the District’s allocated property tax revenue to the California Department of Education. Property taxes are recorded as local LCFF sources by the District.

33

CLOVIS UNIFIED SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2014

The California Department of Education reduces the District’s entitlement by the District’s local property tax revenue. The balance is paid from the State General Fund, and is known as the State Apportionment.

2.	DEPOSITS

Cash at June 30, 2014, consisted of the following:

Governmental Funds
Pooled Funds:

Proprietary Fund

Fiduciary
Funds	Total

Cash in County Treasury	$ 154,278,800	$ 29,797,698	$	5,813,780	$ 189,890,278

Deposits:
Cash on Hand and in Banks Cash in Revolving Fund Cash with Fiscal Agent

6,724,290 147,500 36,200

1,983,274 --

1,991,899 --

10,699,463 147,500 36,200

Total	$ 161,186,790	$ 31,780,972	$	7,805,679	$ 200,773,441

In accordance with Education Code Section 41001, the District maintains substantially all of its cash in the Fresno County Treasury as part of the investment pool which has a balance on June 30, 2014 of $2,229,170,000. The County pools these funds with those of other Districts in the County and invests the cash. These pooled funds are carried at cost which approximates market value. The District is considered to be an involuntary participant in the external investment pool. Interest earned is deposited quarterly into participating funds. Any investment losses are proportionately shared by all funds in the pool.

The fair market value of this pool as of June 30, 2014, as provided by the pool sponsor, was $2,249,586,000. The County is required by Government Code Section 53635 pursuant to section 53601 to invest in time deposits, U.S. government securities, state registered warrants, notes or bonds, State Treasurer's investment pool, bankers' acceptances, commercial paper, negotiable certificates of deposit, and repurchase or reverse repurchase agreements.

34

CLOVIS UNIFIED SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2014

Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates that 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 manages its exposure to interest rate risk by investing in the County Treasury and in Money Market Mutual Fund U.S. Treasury Fund obligations. Clovis Unified School District maintains an investment with the Fresno County Investment Pool with a fair value of approximately $185,762,375 and an amortized book value of $184,076,498. The average weighted maturity for this pool is 2.6 years.

The District does not have a formal investment policy that limits cash and investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. At June 30, 2014, the District had no significant interest rate risk related to cash and investments held.

Credit Risk
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. The District does not have a formal investment policy that limits its investment choices other than the limitations of State law.

Concentration of Credit Risk
Concentration of credit risk is the risk of loss attributed to the magnitude of a government’s investment in a single issuer. The District does not place limits on the amount it may invest in any one issuer. At June 30, 2014, the District had no concentration of credit risk.

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. However, the California Government code requires that a financial institution secure deposits made by State or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under State law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure public deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits and letters of credit issued by the Federal Home Loan Bank of San Francisco having a value of 105% of the secured deposits.

Cash in banks are insured up to $250,000 by the Federal Depository Insurance Corporation (FDIC). All cash held by the financial institutions is fully insured or collateralized.

The County is authorized to deposit cash and invest excess funds by California Government Code Section 53648 et seq. The funds maintained by the county are either secured by federal depository insurance or are collateralized.

35

CLOVIS UNIFIED SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2014

3.	ACCOUNTS RECEIVABLE

Accounts receivable at June 30, 2014, consists of the following:

GENERAL FUND
Accounts Receivable

BUILDING

FUND

SCHOOL FACILITIES
FUND

BOND INTEREST AND REDEMPTION
FUND

ALL OTHER GOVERNMENTAL
FUNDS

PROPRIETARY

FUND

FIDUCIARY

FUND	TOTAL

Federal Sources

Categorical Aid Programs

State Sources LCFF
Categorical Aid Programs Lottery

Total State

Local Sources

Local Governments Interest
Other

Total Local

Total Accounts Receivable

Due from Grantor Government Federal Sources
Child Nutrition Program

State Sources

Child Nutrition Program

Total Due from Grantor Government

Total Receivables

$	3,689,991	$

30,006,196 5,653,865 3,023,717

38,683,778

65,674 -
2,311,363

2,377,037

44,750,806

-

-

-

$       44,750,806	$

-       $

---

-

-183,507 -

183,507

183,507

-

-

-

183,507       $

-       $

---

-

-36,807 -

36,807

36,807

-

-

-

36,807       $

-       $

---

-

-61,059 -

61,059

61,059

-

-

-

61,059       $

461,257       $

357,866 246,821 27,596

632,283

-75,043
151,401

226,444

1,319,984

1,182,392

70,207

1,252,599

2,572,583       $

-       $

---

-

--
270,724

270,724

270,724

-

-

-

270,724       $

-       $

---

-

--
51,330

51,330

51,330

-

-

-

51,330       $

4,151,248

30,364,062 5,900,686 3,051,313

39,316,061

65,674 356,416 2,784,818

3,206,908

46,674,217

1,182,392

70,207

1,252,599

47,926,816

36

CLOVIS UNIFIED SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2014

4.	INTERFUND TRANSACTIONS

A. Interfund Receivables/Payables (Due To/Due From)

Interfund transactions are reported as either loans, services provided, reimbursements, or transfers. Loans are reported as interfund receivables and payables, as appropriate, and are subject to elimination upon consolidation. Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures/expenses. Reimbursements occur when one fund incurs a cost, charges the appropriate benefiting fund, and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers among governmental or proprietary funds are netted as part of the reconciliation to the government-wide financial statements.

Individual fund interfund receivable and payable balances at June 30, 2014, are as follows:

DUE TO

General

DUE FROM	Fund

Building

Fund

School Facilities
Fund

All Other Governmental
Funds

Proprietary	Agency

Fund	Fund	Total

General Fund Building Fund
School Facilities Fund

All Other Governmental Funds Agency Fund

Total

$       5,301,868 1,587
-1,014,651 886

$	6,318,992

$       23,612 -
41,914 --

$       65,526

$                     -5,259,954
---

$      5,259,954

$       1,454,582 ----

$       1,454,582

$	623,303 ---
3,000,000

$       3,623,303

$     121,668 ----

$     121,668

$         7,525,033 5,261,541 41,914 1,014,651 3,000,886

$      16,844,025

B. Interfund Transfers

Interfund transfers consist of operating transfers from funds receiving resources to funds through which the resources are to be expended. Interfund transfers for the 2013-14 fiscal year were as follows:

TRANSFERS TO

General

TRANSFERS FROM	Fund

Building

Fund

School Facilities
Fund

All Other Governmental
Funds

Proprietary

Fund	Total

General Fund	$	-	$ 1,731,967	$	-	$      3,395,916	$      6,000,000	$ 11,127,883

Building Fund

Bond Interest and Redemption Fund

All Other Governmental Funds

123,646 1,257,149
309,675

--
9,963,478

36,752,330 -
-

149,285 -
1,465,170

-               37,025,261 -                 1,257,149
-	11,738,323

Total	$     1,690,470	$ 11,695,445	$ 36,752,330	$      5,010,371	$      6,000,000	$ 61,148,616

37

CLOVIS UNIFIED SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2014

5.	FUND EQUITY

Ending fund equity is composed of the following elements:

GENERAL FUND

Nonspendable:

BUILDING

FUND

SCHOOL FACILITIES
FUND

BOND INTEREST AND REDEMPTION
FUND

ALL OTHER GOVERNMENTAL
FUNDS

PROPRIETARY

FUND	TOTAL

Revolving Fund Inventory
Prepaid Expenditures

Total Nonspendable

Restricted to:

Legally Restricted Balances

Committed to:

Deferred Maintenance Adult Education

Total Commitments

Assigned to: Local Carryover
Mandated Block Grant Other Assignments

Total Assignments

Unassigned to: Unassigned

Total Fund Equity

$	 144,000	$ 1,925,859 1,019,228

3,089,087

1,955,928

--

-

786,236 782,977 -

1,569,213

46,138,952

$	52,753,180	$

-      $ -
-

-

38,177,267

--

-

---

-

-

38,177,267      $

-      $ -
-

-

-

--

-

---

-

113,763

113,763      $

-      $ -
-

-

-

--

-

---

-

31,451,263

31,451,263      $

3,500      $ 270,974 184,153

458,627

30,230,627

77,753 1,945,271

2,023,024

--
2,763,045

2,763,045

-

35,475,323       $

-      $ -
-

-

-

--

-

-

-

17,641

17,641      $

147,500 2,196,833 1,203,381

3,547,714

70,363,822

77,753 1,945,271

2,023,024

786,236 782,977 2,763,045

4,332,258

77,721,619

157,988,437

38

CLOVIS UNIFIED SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2014

6.	CAPITAL ASSETS AND DEPRECIATION

Capital asset activity for the year ended June 30, 2014, is shown below:

PRIMARY GOVERNMENT

Balance
July 1, 2013	Additions

Balance Retirements	June 30, 2014

Land
Site Improvements Buildings
Furniture and Equipment Work in Progress

$      58,904,072 110,224,078 664,294,575 38,505,751 59,065,922

$      18,425,649 1,183,454 22,939,598 27,936,190 83,469,773

$                        -103,280
-52,054
69,298,214

$      77,329,721 111,304,252 687,234,173 66,389,887 73,237,481

Totals at Historical Cost

Less Accumulated Depreciation for: Site Improvements
Buildings

Furniture and Equipment

Total Accumulated Depreciation

930,994,398

57,580,688 163,717,844 21,891,985

243,190,517

153,954,664

3,985,035 14,246,016 3,073,886

21,304,937

69,453,548

57,234 -52,054

109,288

1,015,495,514

61,508,489 177,963,860 24,913,817

264,386,166

Governmental Activities Capital

Assets, Net	$ 687,803,881	$ 132,649,727	$	69,344,260	$ 751,109,348

Depreciation expense was charged to governmental activities as follows:

Governmental Activities: Instruction
Supervision of Instruction All Other Pupil Services Ancillary Services Community Services
All Other General Administration Plant Services

Total Depreciation Expense

$      13,759,046 552,727 2,530,518 3,079,368 1,101,974 169,399 111,905

$	21,304,937

39

CLOVIS UNIFIED SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2014

7.	BONDED DEBT

The outstanding general obligation bonded debt of the District at June 30, 2014 is the following:

Date of

Bond	Bond

Year of

Maturity

Rate of

Interest

Amount of Original
Issue

Bonds Outstanding
July 1, 2013

Issued	Matured/Defeased During                       During
Year	Year

Bonds Outstanding
June 30, 2014

2001 Series A

2001 Series B

10/1/2001	2018

10/1/2002	2027

9.0%     $

3.6-5.23%

49,996,471       $

29,000,256

17,177,762       $

22,460,315

-      $	2,893,242       $

-	1,713,128

14,284,520

20,747,187

2004 Series A 2004 Series B

2008 Refunding 2012 Refunding 2012 Series A
2012 Series B

12/1/2004          2029 3/1/2006           2030

8/1/2008	2015 5/31/2012	2021 8/15/2012	2037
7/25/2013	2038

3.8-6.15% 4.0-5.0%

1.9-4.0% 2.0-5.0% 1.0-5.5%
2.0-6.12%

119,998,286 48,001,060

64,715,000 17,935,000 79,996,801
49,996,579

79,007,041 26,566,060

11,545,000 17,570,000 79,996,801
-

--

---
49,996,579

5,872,696 830,000

5,105,000 -5,145,000
-

73,134,345 25,736,060

6,440,000 17,570,000 74,851,801
49,996,579

$	459,639,453       $	254,322,979       $      49,996,579       $	21,559,066       $	282,760,492

The annual requirement to amortize the Election of 2001, Series A general obligation bonds payable, outstanding at June 30, 2014, is as follows:

Year Ending June 30	Principal	Interest	Total

2015	$	2,886,975 2016                                                  2,872,338 2017                                                  2,861,440 2018                                                  2,843,696 2019                                                  2,820,071

Total	$	14,284,520

$	2,363,025 2,697,662 3,053,560 3,426,304 3,824,929

$	15,365,480

$	5,250,000 5,570,000 5,915,000 6,270,000 6,645,000

$	29,650,000

The annual requirement to amortize the Election of 2001, Series B general obligation bonds payable, outstanding at June 30, 2014, is as follows:

Year Ending	Principal	Interest	Total

2015 2016 2017 2018 2019 2020-24 2025-28

Total

$	1,645,824 1,579,078 1,518,131 1,466,582 1,415,593 6,289,566 6,832,413

$	20,747,187

$            1,039,176 1,170,922 1,291,869 1,413,418 1,539,407 9,625,434 16,487,587

$	32,567,813

$            2,685,000 2,750,000 2,810,000 2,880,000 2,955,000 15,915,000 23,320,000

$	53,315,000

40

CLOVIS UNIFIED SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2014

The annual requirement to amortize the Election of 2004, Series A general obligation bonds payable, outstanding at June 30, 2014, is as follows:

Year Ending	Principal	Interest	Total

2015 2016 2017 2018 2019 2020-24 2025-29 2030

Total

$	5,859,827 5,828,287 5,814,851 5,796,643
-17,143,088 27,966,154 4,725,495

$	73,134,345

$	2,900,173 3,456,713 4,030,149 4,638,357
-24,056,912 60,483,846 16,279,505

$	115,845,655

$            8,760,000 9,285,000 9,845,000 10,435,000
-41,200,000 88,450,000 21,005,000

$	188,980,000

The annual requirement to amortize the Election of 2004, Series B general obligation bonds payable, outstanding at June 30, 2014, is as follows:

Year Ending June 30	Principal	Interest	Total

2015 2016 2017 2018 2019 2020-24 2025-29 2030-31

Total

$	1,000,000 1,185,000 1,385,000
---
13,999,664 8,166,396

$	25,736,060

$	538,800 495,100 443,700 416,000 416,000
2,080,000 10,312,836 17,648,604

$	32,351,040

$           1,538,800 1,680,100 1,828,700 416,000
416,000 2,080,000 24,312,500 25,815,000

$	58,087,100

The annual requirement to amortize the 2008 Refunding general obligation bonds payable, outstanding at June 30, 2014, is as follows:

Year Ending June 30	Principal	Interest	Total

2015                                    $            3,170,000 2016                                                 3,270,000

Total	$	6,440,000

$               163,150 57,225

$	220,375

$            3,333,150 3,327,225

$	6,660,375

41

CLOVIS UNIFIED SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2014

The annual requirement to amortize the 2012 Refunding general obligation bonds payable, outstanding at June 30, 2014, is as follows:

Year Ending June 30

2015 2016 2017 2018

Principal

$	----

Interest

$	749,550 749,550 749,550 749,550

Total

$	749,550 749,550 749,550 749,550

2019 2020-22

8,895,000 8,675,000

563,650 594,775

9,458,650 9,269,775

Total	$	17,570,000	$	4,156,625	$	21,726,625

The annual requirement to amortize the 2012 Series A general obligation bonds payable, outstanding at June 30, 2014, is as follows:

Year Ending June 30

2015 2016 2017 2018 2019 2020-24 2025-29 2030-34 2035-38

Total

Principal

$	815,000 --
535,000 1,625,000 11,819,221 12,837,147 23,426,153 23,794,280

$	74,851,801

Interest

$           2,338,925 2,334,850 2,334,850 2,324,150 2,280,950 11,609,929 12,637,478 16,242,097 14,257,420

$	66,360,649

Total

$           3,153,925 2,334,850 2,334,850 2,859,150 3,905,950 23,429,150 25,474,625 39,668,250 38,051,700

$	141,212,450

The annual requirement to amortize the 2012 Series B general obligation bonds payable, outstanding at June 30, 2014, is as follows:

Year Ending June 30

2015 2016 2017 2018 2019 2020-24 2025-29 2030-34 2035-39

Total

Principal

$	2,755,000 ----
3,230,547 3,906,068 10,989,964 29,115,000

$	49,996,579

Interest

$           1,966,638 1,939,087 1,939,087 1,939,087 1,939,087 11,664,892 13,529,370 12,231,354 4,415,350

$	51,563,952

Total

$           4,721,638 1,939,087 1,939,087 1,939,087 1,939,087 14,895,439 17,435,438 23,221,318 33,530,350

$	101,560,531

42

CLOVIS UNIFIED SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2014

The annual requirement to amortize general obligation bonds payable, outstanding at June 30, 2014, is summarized as follows:

Year Ending June 30	Principal	Interest	Total

2015 2016 2017 2018 2019 2020-24 2025-29 2030-34 2035-39

Total

$	18,132,626 14,734,703 11,579,422 10,641,921 14,755,664 47,157,423 65,541,445 47,308,008 52,909,280

$	282,760,492

$         12,059,437 12,901,109 13,842,765 14,906,866 10,564,023 59,631,941 113,451,118 62,401,560 18,672,770

$	318,431,589

$         30,192,063 27,635,812 25,422,187 25,548,787 25,319,687 106,789,364 178,992,563 109,709,568 71,582,050

$	601,192,081

8.	OTHER POSTEMPLOYMENT BENEFITS

The District implemented GASB Statement #45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pension for the fiscal year ended June 30, 2014. This implementation allows the District to report its liability for other postemployment benefits consistent with newly established generally accepted accounting principles and to reflect an actuarially determined liability for the present value of projected future benefits for retired and active employees on the financial statements. In the 2007-08 fiscal year, the District re-established the Self Insurance Fund to account for funds set aside for postemployment benefits.

Plan Description. The District provides lifetime postemployment benefits to certificated and classified employees. To qualify, employees hired prior to August 31, 2007 must have 15 benefited service years with the District and attained the age of 55, and employees hired after September 1, 2007 must have 30 benefited service years with the District and attained the age of 55. Dental and vision benefits are provided for five years, but not beyond age 65. There are 2,904 active and 846 retired members in the plan. Benefits and eligibility for teachers and food service workers are established and amended through collective bargaining with the recognized bargaining agent for each group; and include postemployment health and dental coverage. Benefits and eligibility for administrators, secretaries and general support staff are established and amended by the governing body.

Funding Policy. The District has $0 of invested plan assets accumulated for payment of future benefits. The employer makes all contributions, and for the year ended June 30, 2014, the District contributed $46,811,616 to the Self Insurance Fund.

Annual OPEB Cost and Net OPEB Obligation. The District’s annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required contribution (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any un-funded actuarial liabilities over a period not to exceed thirty years. A table showing the components of the District’s annual OPEB cost for the year, the amount actually paid from the plan, and changes in the District’s net OPEB obligation is not presented because the District has opted to record the total unfunded actuarial liability at June 30, 2014.

43

CLOVIS UNIFIED SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2014

Government Activities

Annual required contribution (ARC) Interest on net OPEB
Adjustment to ARC

Annual OPEB cost (expense) Contribution made
Increase in OPEB obligation

OPEB obligation at beginning of year OPEB obligation at end of year

Less amount recorded in Self Insurance Fund

Net OPEB obligation at end of year

$      230,040,422 6,959,050
(247,567,172)

(10,567,700) 57,546,603 46,978,903

173,976,252 220,955,155

(26,272,183)

$	194,682,972

The District’s annual OPEB cost, the percentage of the annual OPEB cost contributed to the plan, and the OPEB obligation for 2014 was:

Fiscal                              Annual Year                                OPEB
Ended	Cost

Percentage of Annual OPEB Cost Contributed

Net OPEB
Obligation

6/30/2012 6/30/2013 6/30/2014

$         30,940,554 51,383,102
(10,567,700)

142.86%	$ 87.58%
-

149,226,525 146,493,808 194,682,972

Funded Status and Funding Progress. As of July 1, 2014, the most recent actuarial valuation date, the District’s unfunded actuarial accrued liability (UAAL) was $220,955,155. The annual payroll for active employees covered by the plan in the actuarial valuation for the 2013-2014 fiscal year was $194,851,256 for a ratio of the UAAL to covered payroll of 113%.

Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future, such as assumptions about future terminations, mortality, and healthcare cost trends. Actuarially determined amounts are subject to continual revision as actuarial results are compared with past experience and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.

Actuarial Methods and Assumptions. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effect of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations.

44

CLOVIS UNIFIED SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2014

In the July 1, 2014 actuarial valuation, the projected unit credit actuarial cost method was used. The actuarial assumptions included a rate of 4.0% to discount expected liabilities to the valuation date. The initial healthcare trend rate was 8% for medical and 8% for drugs and 4% for dental, reduced by decrements to an ultimate rate of 5.0% for medical after 5 years. Mortality, disability and retirement rates are from the 2012 RP-2000 Combined Mortality. The UAAL is being amortized as a level percentage of projected payrolls.

9.	COMPENSATED ABSENCES

The total accumulated unpaid employee compensated absences as of June 30, 2014, amounted to $1,848,674.

10. CERTIFICATES OF PARTICIPATION

A. In August 2006, the Central Valley School Districts Financing Corporation issued 2006 Certificates of Participation in the amount of $7,820,000 with interest rates ranging from 4.00 to 4.50 percent.

The certificates mature through August 2016 as follows:

Year Ending June 30	Principal	Interest	Total

2015	$	355,000 2016                                                     370,000 2017                                                     385,000

Total	$	1,110,000

$                 41,963 25,650
8,663

$	76,276

$	396,963 395,650 393,663

$	1,186,276

B. In June 2010, the Central Valley Support Services JPA issued 2010 Certificates of Participation on behalf of CUSD in the amount of $9,365,000 with interest rates ranging from 2.00 to 4.00 percent. As of
June 30, 2014, the District drew down funds in the amount of $8,332,947.

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

Year Ending June 30	Principal	Interest	Total

2015	$	1,050,000 2016                                                  1,085,000 2017                                                  1,115,000 2018                                                  1,155,000 2019                                                  1,205,000 2020                                                  1,067,947

Total	$	6,677,947

$	260,150 228,125 195,125 155,300 108,100
55,542

$	1,002,342

$	1,310,150 1,313,125 1,310,125 1,310,300 1,313,100 1,123,489

$	7,680,289

45

CLOVIS UNIFIED SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2014

C. In January 2011, the Central Valley Support Services JPA issued 2011 Certificates of Participation on behalf of CUSD in the amount of $4,450,000 with interest rates ranging from 2.00 to 4.50 percent. As of June 30, 2014, the District drew down funds in the amount of $3,890,057.

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

Year Ending June 30	Principal	Interest	Total

2015 2016 2017 2018 2019 2020-24 2025

Total

$	235,000 245,000 255,000 265,000 275,000
1,565,000 440,058

$	3,280,058

$	185,500 175,900 165,900 155,500 144,356 509,432
39,599

$	1,376,187

$	420,500 420,900 420,900 420,500 419,356
2,074,432 479,657

$	4,656,245

The District currently has a total amount due of $11,236,650 for Certificates of Participation. The funding sources for the total COP’s balance as of June 30, 2014 are:

General Fund

Special Reserve (RCA) Fund

Total

$               9,881,730 1,186,275

$	11,068,005

11. CAPITAL LEASES

The District has entered into various lease agreements. The payments are as follows:

Year Ending June 30	Principal	Interest	Total

2015	$	1,086,087 2016                                                     775,849 2017                                                     465,229 2018                                                     426,460

Total	$	2,753,625

$                16,448 5,197
--

$	21,645

$	1,102,535 781,046 465,229 426,460

$	2,775,270

46

CLOVIS UNIFIED SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2014

12. CHILD DEVELOPMENT PORTABLES

The District financed the purchase of Child Development Portables through the California Department of Education’s Child Care Facilities Revolving Fund. The agreement with CDE includes a 0% 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 the responsibility of maintaining the facilities and keeping the facilities free and clear of any levies, liens and encumbrances.

The loans mature in 2019 and the payments are as follows:

Year Ending June 30	Payment

2015	$	80,406 2016                                                                                                80,406 2017                                                                                                80,406 2018                                                                                                63,000 2019                                                                                                63,000

Total	$	367,218

13. SUPPLEMENTARY RETIREMENT PLAN

The District adopted the PARS 403(b) Supplementary Retirement Plan in fiscal years 2008, 2009, and 2010 for certain eligible employees. The District shall make contributions into the eligible participant’s 403(b) annuity contract held by Pacific Life Insurance Company. The future liability for the Supplementary Retirement Plan is as follows:

Year Ending June 30	Payment

2015	$	1,074,233

Total	$	1,074,233

47

CLOVIS UNIFIED SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2014

14. RISK MANAGEMENT

The District is self-insured for workers’ compensation, health, vision and dental programs. The District accounts for and finances its uninsured risks of loss in the General Fund. The General Fund provides coverage for up to a maximum of $275,000 for each workers’ compensation claim and $350,000 for each health insurance claim. The District purchases commercial insurance for claims in excess of coverage provided by the General 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 General Fund based on actuarial estimates of the amounts needed to pay prior and current year claims. The claims liability of $17,009,238 reported in the General Fund and Self Insurance Fund at June 30, 2014 is based on the requirements of Governmental Accounting Standards Board 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. Changes in the Fund’s claims liability amount in fiscal years 2010, 2011, 2012, 2013 and 2014 were:

Liability July 1

Current-Year Claims and Changes in Estimates

Claims Payments

Liability June 30

2009-10 2010-11 2011-12 2012-13 2013-14

$	15,292,675 15,502,049 14,815,108 17,560,326 14,646,102

$	38,187,040 40,503,746 45,848,013 40,397,556 51,279,995

$	37,977,666 41,190,687 43,102,795 43,311,780 48,916,859

$	15,502,049 14,815,108 17,560,326 14,646,102 17,009,238

Claim loss detail by coverage type is as follows:

Worker's Compensation: Current Position
Dental Program Vision Program
Health and Prescription Program

$             9,357,439 625,600
80,182 6,946,017

Total	 $	17,009,238 

48

CLOVIS UNIFIED SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2014

15. LONG-TERM DEBT

A schedule of changes in long-term debt for the fiscal year ended June 30, 2014, is shown below:

Balance

July 1, 2013	Additions

Balance

Deductions	June 30, 2014

Amounts Due Within
One Year

Bonded Debt Postemployment Benefits Compensated Absences Certificates of Participation Capital Leases
Child Development Portables Supplemental Retirement Plan

Total

$ 254,322,979 146,493,808 1,722,495 21,848,005 2,742,405 475,541 1,074,233

$ 428,679,466

$      49,996,579 48,189,164 126,179
-930,000 -
-

$	99,241,922

$	21,559,066 --
10,780,000 918,780 108,323
-

$	33,366,169

$ 282,760,492	$ 194,682,972
1,848,674 11,068,005 2,753,625 367,218 1,074,233

$ 494,555,219	$

18,132,626 --
1,640,000 1,086,387 80,406 1,074,233

22,013,652

16. CHARTER SCHOOLS

On May 19, 2012, the State Board of Education granted the Clovis Online Charter School a term of three years, from 2012-13 through 2014-15. The District accounts for the charter school within the Charter School Fund.

17. JOINT POWERS AGREEMENTS

The District has entered into joint powers agreements (JPAs) with other governmental units, as allowed by the California Government Code. These JPAs have budgeting and financial reporting requirements independent of member units, whose financial statements are not presented in these financial statements; however, fund transactions between the entities and Clovis Unified School District are included in these statements. Summarized below is certain information on these entities:

Schools Excess Liability Fund (SELF)

Purpose:

Participants:

Governing Board:

To provide liability insurance coverage in excess of $1,000,000 (up to $25,000,000).

Other school districts in California.

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

The summary of financial information on the Schools Excess Liability Fund is available from Schools Excess Liability Fund, 1531 I Street, Suite 300, Sacramento, CA 95814.

49

CLOVIS UNIFIED SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2014

Alliance of Schools for Cooperative Insurance Programs (ASCIP)

Purpose:

Participants:

Governing Board:

Arrange for and provide property and liability insurance for its members.

Other governmental agencies.

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

Central Valley Support Services (CVSS)

Purpose:

Participants:

Governing Board:

To provide maintenance, operations, food service, transportation, printing, and warehouse/delivery services or any other support services approved by the Governing Board to its members.

Clovis Unified School District, Golden Valley Unified School District, and Fresno Unified School District.

The Governing Board 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.

Center for Advanced Research & Technology (CART)

Purpose:

Participants:

Governing Board:

To provide for the financing and operation of a joint technical center for high school age students.

Clovis Unified School District and Fresno Unified School District.

Representatives from the member public educational agencies and related associations.

Condensed financial information of these JPAs are as follows:

SELF* Audited
June 30, 2013

ASCIP Audited
June 30, 2013

CVSS Audited
June 30, 2014

CART Audited
June 30, 2014

Total Assets                                                     $          166,243       $ 154,495,612       $     87,156,878       $       10,971,357 Total Liabilities                                                           129,963            104,897,367            111,742,877                     214,758

Net Position	$

Total Revenues	$ Total Expenditures

Net Increase (Decrease) in Net Position	$

36,280

11,589 14,165

(2,576)

$	49,598,245

$     58,938,664 50,030,839

$	8,907,825

$ (24,585,999)	$

$       4,900,410       $ 5,148,840

$	(248,430)	$

10,756,599

2,370,281 2,491,469

(121,188)

* in thousands

50

CLOVIS UNIFIED SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2014

18. COMMITMENTS AND CONTINGENCIES

A. Federal and State Allowances, Awards and Grants

The District has received Federal and State funds for specific purposes that are subject to review and audit by the grantor agencies. If the review or audit discloses exceptions, the District may incur a liability to grantor agencies.

B. Litigation

Various claims and litigation involving the District are currently outstanding. However, management of the District believes, based on consultation with legal counsel, that the ultimate resolution of these matters will not have a material adverse effect on the District’s financial position or results of operations.

C. Construction Commitments

At June 30, 2014, the District had the following commitments with respect to the unfinished capital projects:

Remaining Construction
Capital Projects	Commitments

Expected Date of Completion

Clark Intermediate, Mod & New Admin

Sierra Outdoor School, Modernize Classroom Buildings Clovis West High, Modernization
Temperance-Kutner, Modernization Clovis High Phase II, Modernization Tarpey, Modernization
Community Day School, Modernization Valley Oak, Modernization
Dry Creek, Modernization Sierra Vista, Modernization
District-Wide, Video Surveillance System Freedom, Modernization
Various Sites, Paving Projects Pinedale, Modernization
Metropolitan Area Network, City of Fresno Schools District Office, Warehouse/Freezer Expansion Fugman, Mod/Turf Renovation
District Office, New Offices Buchanan High, Pool Boiler Replace
Buchanan High, Tennis Court Resurfacing Alta Sierra Intermediate, Pool Boiler Replace Clovis Elementary, Boiler Replace

Total

$         11,640,655 9,576,556 6,495,643 5,727,828 5,186,856 4,907,172 4,621,521 3,494,778 3,341,250 2,701,444 2,516,420 1,019,140 780,860
691,983 532,831 481,253 339,662 189,141 153,475 120,828 108,700 72,407

$	64,700,403

8/21/2015 4/17/2015 2/27/2015 7/30/2015 2/2/2015 10/21/2014 3/30/2015 9/16/2014 9/19/2014 9/23/2014 4/1/2015 8/21/2014 8/25/2014 8/30/2014 8/30/2014 8/13/2014 9/14/2014 8/30/2014 9/26/2014 8/1/2014 9/26/2014 9/25/2014

51

CLOVIS UNIFIED SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2014

19. EMPLOYEE RETIREMENT SYSTEMS

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

CalPERS

Plan Description

The District contributes to the School Employer Pool under the California Public Employees’ Retirement System (CalPERS), a cost-sharing multiple-employer public employee retirement system defined benefit pension plan administered by CalPERS. The plan provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. Benefit provisions are established by state statutes, as legislatively amended, within the Public Employees’ Retirement Law. CalPERS issues a separate comprehensive annual financial report that includes financial statements and required supplementary information. Copies of the CalPERS annual financial report may be obtained from the CalPERS Executive Office, 400 P Street, Sacramento, California 95814.

Funding Policy

Active plan members are required to contribute to PERS 7.0% of their salary and the District is required to contribute an actuarially determined rate. The actuarial methods and assumptions used for determining the rate are those adopted by the CalPERS Board of Administration. The required employer contribution rate for fiscal year 2013-14 was 11.442%. The contribution requirements of the plan members are established by the state statute. The District’s contributions to CalPERS for the fiscal years ending June 30, 2014, 2013 and 2012 were $6,317,704, $5,423,519 and $5,874,697, respectively, and equal 100% of the required contributions for each year.

STRS

Plan Description

The District contributes to the State Teachers’ Retirement Systems (STRS), a cost-sharing multiple-employer public employee retirement system defined benefit pension plan administered by STRS. The plan provides retirement, disability, and survivor benefits to beneficiaries. Benefit provisions are established by state statutes, as legislatively amended, within the State Teachers’ Retirement Law. STRS issues a separate comprehensive annual financial report that includes financial statements and required supplementary information. Copies of the STRS annual financial report may be obtained from the STRS, 7667 Folsom Boulevard, Sacramento, California 95826.

52

CLOVIS UNIFIED SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2014

Funding Policy

Active plan members are required to contribute 8.0% of their salary and the District is required to contribute an actuarially determined rate. The actuarial methods and assumptions used for determining the rate are those adopted by the STRS Teachers’ Retirement Board. The required employer contribution rate for fiscal year 2013-14 was 8.25% of annual payroll. The contribution requirements of the plan members are established by state statute. The District’s contributions to STRS for the fiscal years ending June 30, 2014, 2013 and 2012
were $12,378,604, $11,376,909 and $11,235,029, respectively, and equal 100% of the required contributions for each year.

APPLE

Plan Description

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

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

Funding Policy

Participants in APPLE are required to contribute 3.75% of gross salary to APPLE. The District is required to contribute 3.75% of gross salary expenditures to APPLE. The District’s contributions to APPLE for the fiscal year ending June 30, 2014, 2013 and 2012 were $285,495, $283,299 and $266,474, respectively.

20. SUBSEQUENT EVENT

On August 19, 2014, the District issued General Obligation Bonds, Election of 2012, Series C, in the aggregate principal amount of $64,995,505. The bonds bear interest rates ranging from 3.19% to 5.00% and are payable through August 2039.

53

CLOVIS UNIFIED SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2014

21. New Accounting Pronouncements

A. In June 2012, the Governmental Accounting Standards Board (GASB) issued statement No. 68, Accounting and Financial Reporting for Pensions – an amendment of GASB Statement No. 27. The objective of this Statement is to improve accounting and financial reporting by state and local governments for pensions. It also improves information provided by state and local governmental employers about financial support for pensions that is provided by other entities.

This Statement replaces the requirements of Statement No. 27, Accounting for Pensions by State and Local Governmental Employers, as well as the requirements of Statement No. 50, Pension Disclosures, as they relate to pensions that are provided through pension plans administered as trusts or equivalent arrangements (hereafter jointly referred to as trusts) that meet certain criteria.

This Statement is effective for fiscal years beginning after June 15, 2014. Early implementation is encouraged. The District has not yet determined the effect on the financial statements.

B. In November 2013, the GASB issued Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date – an Amendment of GASB Statement No. 68.

This Statement amends paragraph 137 of Statement 68 to require that, at transition, a government recognize a beginning deferred outflow of resources for its pension contributions, if any, made subsequent to the measurement date of the beginning net pension liability. Statement 68, as amended, continues to require that beginning balances for other deferred outflows of resources and deferred inflows of resources related to pensions be reported at transition only if it is practical to determine all such amounts

The provisions of this Statement are required to be applied simultaneously with the provisions of Statement 68.

54

Required Supplementary Information

CLOVIS UNIFIED SCHOOL DISTRICT BUDGETARY COMPARISON SCHEDULE GENERAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014

Budgeted Amounts

Original	Final REVENUES
Local Control Fund Formula Sources

Actual	Variance with (GAAP                        Final Budget
Basis)	Positive-(Negative)

State Apportionments Local Sources
LCFF Transfers

Total LCFF Sources

Federal Revenues Other State Revenues Other Local Revenues

Total Revenues

EXPENDITURES Certificated Salaries Classified Salaries Employee Benefits Books and Salaries
Services and Other Operating Expenditures Other Outgo
Direct Support/Indirect Costs Capital Outlay
Debt Service: Principal Interest

Total Expenditures

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES

OTHER FINANCING SOURCES (USES) Interfund Transfers In (Note 4B) Interfund Transfers Out (Note 4B) Proceeds from Capital Leases

Total Other Financing Sources (Uses)

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES AND
OTHER FINANCING SOURCES (USES)

FUND BALANCE - JULY 1, 2013

$      164,134,436 45,020,075 193,023 209,347,534

13,554,889 65,216,625 13,083,759

301,202,807

139,159,696 48,293,636 66,241,515 21,099,623 22,829,328 684,823
(956,535) 282,889

957,869 24,000

298,616,844

2,585,963

162,800 (3,478,847)
929,569

(2,386,478)

$	199,485

$     199,547,532 49,685,570
(407,849) 248,825,253

15,036,105 39,397,945 15,441,337

318,700,640

144,640,079 56,894,114 65,828,907 20,457,230 24,264,860 680,914
(932,722) 1,016,720

951,696 21,626

313,823,424

4,877,216

1,690,470 (11,127,883)
930,000

(8,507,413)

$	(3,630,197)

$     199,547,532           $                             -49,685,570                                         -(407,849)                                        -248,825,253                                         -

15,036,105	-39,397,945	-15,441,337	-

318,700,640	-

144,640,079                                         -56,894,114                                         -65,828,907                                         -20,457,230                                         -24,264,860                                         -680,914                                         -(932,722)                                        -1,016,720                                         -

951,696                                         -21,626                                         -

313,823,424	-

4,877,216	-

1,690,470                                         -(11,127,883)                                        -930,000                                         -

(8,507,413)	-

(3,630,197)	$	-

56,383,377

FUND BALANCE - JUNE 30, 2014	$	52,753,180

The Notes to Financial Statements are an integral part of this statement.

55

CLOVIS UNIFIED SCHOOL DISTRICT
OTHER POSTEMPLOYMENT BENEFITS (OPEB) SCHEDULE OF FUNDING PROGRESS FOR THE FISCAL YEAR ENDED JUNE 30, 2014

Actuarial Valuation Date

Actuarial Value of Assets (a)

Actuarial Accrued Liability (AAL) (b)

Unfunded	Funded AAL (UAAL)            Ratio
(b-a)	(a/b)

Covered Payroll (c)

UAAL as a Percentage of Covered Payroll ([b-a]/c)

July 1, 2008	$ July 1. 2010
July 1, 2012 July 1, 2014

-	$ 128,393,347 -           129,691,185 -           167,594,127 -           220,955,155

$ 128,393,347 129,691,185 167,594,127 220,955,155

0%     $ 163,718,940	78% 0%	172,688,964	75% 0%	153,061,973                    109% 0%	194,851,256                    113%

The Notes to Financial Statements are an integral part of this statement.

56

Supplementary Information

STATEMENT 1 CLOVIS UNIFIED SCHOOL DISTRICT
COMBINING BALANCE SHEET NONMAJOR SPECIAL REVENUE FUNDS JUNE 30, 2014

CHARTER SCHOOL FUND
ASSETS

Cash

CHILD ADULT	DEVELOPMENT
FUND	FUND

CAFETERIA

FUND

DEFERRED MAINTENANCE
FUND	TOTAL

Cash in County Treasury Cash on Hand and in Banks Cash in Revolving Fund
Accounts Receivable

Due From Grantor Governments Due From Other Funds Inventory
Prepaid Expenditures

$	570,808 --
386,996 ---
-

$ 1,290,882	$ -
3,500 609,551 -319,319 40,325
64,551

2,031,867 --
255,179 -
32,411 -
8,308

$     4,646,806	$ 3,654,154
-3,107
1,252,599 -
230,649

18,428

122,890 --
871 ---
-

$       8,663,253 3,654,154 3,500 1,255,704 1,252,599 351,730 270,974
91,287

TOTAL ASSETS	$	957,804	$ 2,328,128	$	2,327,765	$     9,805,743	$	123,761	$ 15,543,201

LIABILITIES AND FUND BALANCES Liabilities
Accounts Payable Due to Other Funds
Unearned Revenue

$                 876 128,184
-

$	31,081	$ 72,732
170,668

44,698	$ 218,907
-

46,901	$ 594,707
214,976

17,556       $ -
-

141,112 1,014,530
385,644

Total Liabilities

Fund Balances Nonspendable Restricted Committed Assigned

Total Fund Balances

129,060

-28,063 -
800,681

828,744

274,481

108,376 -
1,945,271 -

2,053,647

263,605

8,308 93,488 -
1,962,364

2,064,160

856,584

249,077 8,700,082 -
-

8,949,159

17,556

28,452 -77,753 -

106,205

1,541,286

394,213 8,821,633 2,023,024 2,763,045

14,001,915

TOTAL LIABILITIES AND

FUND BALANCES	$	957,804	$ 2,328,128	$	2,327,765	$     9,805,743	$	123,761	$ 15,543,201

The Notes to Financial Statements are an integral part of this statement.

57

STATEMENT 2 CLOVIS UNIFIED SCHOOL DISTRICT
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR SPECIAL REVENUE FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2014

REVENUES

Local Control Fund Formula Sources:

CHARTER SCHOOL
FUND

CHILD ADULT	DEVELOPMENT
FUND	FUND

CAFETERIA

FUND

DEFERRED MAINTENANCE
FUND	TOTAL

State Apportionments LCFF Transfers
Total LCFF Sources

Federal Revenues Other State Revenues
Other Local Revenues

$      2,079,699 407,849 2,487,548

-168,498
5,226

$	-	$ -
-

1,052,332 73,607
1,794,719

---

-2,326,861
6,131,719

$	-	$ -
-

8,114,355 620,910
4,484,054

-	$	2,079,699 -                  407,849 -               2,487,548

-               9,166,687 -               3,189,876
4,713	12,420,431

Total Revenues

EXPENDITURES Instruction
Instruction-Related Services: Supervision of Instruction
Instructional Library, Media and Technology School Site Administration
Pupil Services: Food Services
All Other Pupil Services General Administration:
All Other General Administration Plant Services
Facilities Acquisition and Construction Debt Service:
Principal

Total Expenditures

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES

OTHER FINANCING SOURCES (USES) Interfund Transfers In
Interfund Transfers Out

Total Other Financing Sources (Uses)

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES AND OTHER SOURCES (USES)

FUND BALANCES - JULY 1, 2013

2,661,272

1,538,446

44,083 47,179 498,143

-192,153

70,436 27,872 -

-2,418,312

242,960

--

-

242,960

585,784

2,920,658

2,653,758

551,638 16,739 1,053,235

-147,723

-304,679 -

-4,727,772

(1,807,114)

846,880 -

846,880

(960,234)

3,013,881

8,458,580

6,267,696

1,456,359 --

-99,365

333,821 --

108,323 8,265,564

193,016

-(544,256)

(544,256)

(351,240)

2,415,400

13,219,319

-

---

11,677,842 -

528,465 --

-12,206,307

1,013,012

-(920,913)

(920,913)

92,099

8,857,060

4,713

-

---

--

-750,636
1,102,262

-1,852,898

(1,848,185)

900,000 -

900,000

(948,185)

1,054,390

27,264,542

10,459,900

2,052,080 63,918 1,551,378

11,677,842 439,241

932,722 1,083,187 1,102,262

108,323 29,470,853

(2,206,311)

1,746,880 (1,465,169)

281,711

(1,924,600)

15,926,515

FUND BALANCES - JUNE 30, 2014	$	828,744	$     2,053,647	$	2,064,160	$      8,949,159	$	106,205	$     14,001,915

The Notes to Financial Statements are an integral part of this statement.

58

STATEMENT 3 CLOVIS UNIFIED SCHOOL DISTRICT
BALANCE SHEET NONMAJOR DEBT SERVICE FUND
JUNE 30, 2014

CENTRAL VALLEY SCHOOL DISTRICTS FINANCING CORPORATION

ASSETS Cash
Cash in County Treasury Accounts Receivable

TOTAL ASSETS

LIABILITIES AND FUND BALANCE Liabilities
Accounts Payable

FUND

$                   1,010,963 4,797

$	1,015,760

$	-

Fund Balance

Restricted	1,015,760

TOTAL LIABILITIES AND FUND BALANCE	$	1,015,760

The Notes to Financial Statements are an integral part of this statement.

59

STATEMENT 4 CLOVIS UNIFIED SCHOOL DISTRICT
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE NONMAJOR DEBT SERVICE FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014

CENTRAL VALLEY SCHOOL DISTRICTS FINANCING CORPORATION

REVENUES
Other Local Revenues

FUND

$	10,293,813

EXPENDITURES Debt Service:
Principal Interest

Total Expenditures

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES

FUND BALANCE - JULY 1, 2013

9,820,000 433,921

10,253,921

39,892

975,868

FUND BALANCE - JUNE 30, 2014	$	1,015,760

The Notes to Financial Statements are an integral part of this statement.

60

STATEMENT 5 CLOVIS UNIFIED SCHOOL DISTRICT
COMBINING BALANCE SHEET NONMAJOR CAPITAL PROJECTS FUNDS JUNE 30, 2014

CAPITAL FACILITIES FUND
ASSETS Cash

SPECIAL RESERVE
FUND	TOTAL

Cash in County Treasury Accounts Receivable
Due From Other Funds Prepaid Expenditures

TOTAL ASSETS

LIABILITIES AND 
FUND BALANCES Liabilities
Accounts Payable Due to Other Funds

$            9,227,438 33,513
683,716 -

$	9,944,667

$                 47,907 121

$          10,433,672 25,969
419,136 64,414

$	10,943,191

$               382,182 -

$          19,661,110 59,482
1,102,852 64,414

$	20,887,858

$               430,089 121

Total Liabilities

Fund Balances Nonspendable Restricted

Total Fund Balances

48,028

-9,896,639

9,896,639

382,182

64,414 10,496,595

10,561,009

430,210

64,414 20,393,234

20,457,648

TOTAL LIABILITIES

AND FUND BALANCES	$	9,944,667	$	10,943,191	$	20,887,858

The Notes to Financial Statements are an integral part of this statement.

61

STATEMENT 6 CLOVIS UNIFIED SCHOOL DISTRICT
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR CAPITAL PROJECTS FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2014

CAPITAL FACILITIES FUND
REVENUES

SPECIAL RESERVE
FUND	TOTAL

Other State Revenue Other Local Revenue

$                        -11,119,445

$            100,000 976,466

$            100,000 12,095,911

Total Revenues

EXPENDITURES General Administration
All Other General Administration Plant Services
Facilities Acquisition and Construction

Total Expenditures

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES

OTHER FINANCING SOURCES (USES) Interfund Transfers In
Interfund Transfers Out

Total Other Financing Sources (Uses)

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES AND OTHER FINANCING SOURCES (USES)

FUND BALANCES - JULY 1, 2013

11,119,445

149,286 982,501 -

1,131,787

9,987,658

149,286 (9,879,596)

(9,730,310)

257,348

9,639,291

1,076,466

-680,694
1,868,825

2,549,519

(1,473,053)

3,114,205 (393,558)

2,720,647

1,247,594

9,313,415

12,195,911

149,286 1,663,195 1,868,825

3,681,306

8,514,605

3,263,491 (10,273,154)

(7,009,663)

1,504,942

18,952,706

FUND BALANCES - JUNE 30, 2014	$	9,896,639	$	10,561,009	$	20,457,648

The Notes to Financial Statements are an integral part of this statement.

62

STATEMENT 7 CLOVIS UNIFIED SCHOOL DISTRICT
COMBINING STATEMENT OF ASSETS AND LIABILITIES AGENCY FUNDS JUNE 30, 2014

WARRANT PASS-THROUGH FUND
ASSETS Cash

ASSOCIATED STUDENT BODY
FUNDS	TOTAL

Cash in County Treasury Cash on Hand and in Banks Accounts Receivable Inventory

TOTAL ASSETS

LIABILITIES Accounts Payable Due to Other Funds
Due to Student Groups/Other Agencies

TOTAL LIABILITIES

$	5,813,780	$ 121,668
--

$	5,935,448	$

$		-	$ 3,000,886 2,934,562

$	5,935,448	$

-	$ 1,870,231
51,330 35,313

1,956,874	$

10,045         $ -
1,946,829

1,956,874	$

5,813,780 1,991,899 51,330 35,313

7,892,322

10,045 3,000,886 4,881,391

7,892,322

The Notes to Financial Statements are an integral part of this statement.

63

STATEMENT 8 CLOVIS UNIFIED SCHOOL DISTRICT
COMBINING STATEMENT OF ASSETS AND LIABILITIES STUDENT BODY FUNDS JUNE 30, 2014

HIGH SCHOOLS
ASSETS

INTERMEDIATE SCHOOLS

ELEMENTARY
SCHOOLS	TOTAL

Cash on Hand and in Banks Accounts Receivable Inventory

TOTAL ASSETS

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

TOTAL LIABILITIES

$	1,025,756	$ 51,330 35,313

$	1,112,399	$

$	10,045	$

602,213 500,141 1,102,354

$	1,112,399	$

249,276	$ -
-

249,276	$

-	$

82,649 166,627 249,276

249,276	$

595,199	$ -
-

595,199	$

-	$

-595,199 595,199

595,199	$

1,870,231 51,330 35,313

1,956,874

10,045

684,862 1,261,967 1,946,829

1,956,874

The Notes to Financial Statements are an integral part of this statement.

64

CLOVIS UNIFIED SCHOOL DISTRICT COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES STUDENT BODY FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2014

BALANCE

STATEMENT 9

BALANCE

HIGH SCHOOLS ASSETS
Cash on Hand and in Banks Account Receivable Inventory

TOTAL ASSETS

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

TOTAL LIABILITIES

INTERMEDIATE SCHOOLS ASSETS
Cash on Hand and in Banks Inventory

TOTAL ASSETS

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

TOTAL LIABILITIES

ELEMENTARY SCHOOLS ASSETS
Cash on Hand and in Banks Inventory

TOTAL ASSETS

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

TOTAL LIABILITIES

TOTALS ASSETS
Cash on Hand and in Banks Account Receivable Inventory

TOTAL ASSETS

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

TOTAL LIABILITIES

JULY 1, 2013

$	999,905 --

$	999,905

$	-

625,270 374,635 999,905

$	999,905

$                           214,113 -

$	214,113

$	-

76,572 137,541 214,113

$	214,113

$                           607,371 -

$	607,371

$	-

-607,371 607,371

$	607,371

$	1,821,389 --

$	1,821,389

$	-

701,842 1,119,547 1,821,389

$	1,821,389

ADDITIONS

$	4,376,550 51,330 35,313

$	4,463,193

$	10,045

1,195,603 3,257,545 4,453,148

$	4,463,193

$                        1,012,374 -

$	1,012,374

$	-

296,029 716,345 1,012,374

$	1,012,374

$                        2,969,269 -

$	2,969,269

$	-

-2,969,269 2,969,269

$	2,969,269

$	8,358,193 51,330 35,313

$	8,444,836

$	10,045

1,491,632 6,943,159 8,434,791

$	8,444,836

DEDUCTIONS

$	4,350,699 --

$	4,350,699

$	-

1,218,660 3,132,039 4,350,699

$	4,350,699

$                           977,211 -

$	977,211

$	-

289,952 687,259 977,211

$	977,211

$                        2,981,441 -

$	2,981,441

$	-

-2,981,441 2,981,441

$	2,981,441

$	8,309,351 --

$	8,309,351

$	-

1,508,612 6,800,739 8,309,351

$	8,309,351

JULY 30, 2014

$	1,025,756 51,330 35,313

$	1,112,399

$	10,045

602,213 500,141 1,102,354

$	1,112,399

$                           249,276 -

$	249,276

$	-

82,649 166,627 249,276

$	249,276

$                           595,199 -

$	595,199

$	-

-595,199 595,199

$	595,199

$	1,870,231 51,330 35,313

$	1,956,874

$	10,045

684,862 1,261,967 1,946,829

$	1,956,874

The Notes to Financial Statements are an integral part of this statement.

65

CLOVIS UNIFIED SCHOOL DISTRICT COMBINING STATEMENT OF ASSETS AND LIABILITIES
STUDENT BODY FUNDS HIGH SCHOOLS JUNE 30, 2014

CLOVIS

STATEMENT 10

CLOVIS

BUCHANAN HIGH SCHOOL
ASSETS

CLOVIS HIGH SCHOOL

EAST HIGH SCHOOL

NORTH HIGH SCHOOL

Cash on Hand and in Banks Accounts Receivable Inventory

TOTAL ASSETS

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

TOTAL LIABILITIES

$	253,883	$ -
35,313

$	289,196	$

$	10,045	$

140,328 138,823 279,151

$	289,196	$

217,182	$ -
-

217,182	$

-	$

126,433 90,749 217,182

217,182	$

122,376	$ -
-

122,376	$

-	$

73,655 48,721 122,376

122,376	$

266,431 --

266,431

-

100,839 165,592 266,431

266,431

CLOVIS WEST
HIGH SCHOOL ASSETS

GATEWAY CONTINUATION
HIGH SCHOOL	TOTAL

Cash on Hand and in Banks Accounts Receivable Inventory

TOTAL ASSETS

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

TOTAL LIABILITIES

$	146,178	$ 51,330
-

$	197,508	$

$	-	$

160,958 36,550 197,508

$	197,508	$

19,706       $ --

19,706	$

-	$

-19,706 19,706

19,706	$

1,025,756 51,330 35,313

1,112,399

10,045

602,213 500,141 1,102,354

1,112,399

The Notes to Financial Statements are an integral part of this statement.

66

CLOVIS UNIFIED SCHOOL DISTRICT COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES STUDENT BODY FUNDS HIGH SCHOOLS
FOR THE FISCAL YEAR ENDED JUNE 30, 2014

BALANCE

STATEMENT 11 Page 1 of 2

BALANCE

Buchanan High School ASSETS
Cash on Hand and in Banks Inventory

TOTAL ASSETS

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

TOTAL LIABILITIES

Clovis High School ASSETS
Cash on Hand and in Banks Inventory

TOTAL ASSETS

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

TOTAL LIABILITIES

Clovis East High School ASSETS
Cash on Hand and in Banks Inventory

TOTAL ASSETS

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

TOTAL LIABILITIES

Clovis North High School ASSETS
Cash on Hand and in Banks Inventory

TOTAL ASSETS

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

TOTAL LIABILITIES

JULY 1, 2013

$                           240,944 -

$	240,944

$	-

156,205 84,739 240,944

$	240,944

$                           240,938 -

$	240,938

$	-

140,450 100,488 240,938

$	240,938

$                             40,063 -

$	40,063

$	-

83,885 (43,822) 40,063

$	40,063

$                           302,920 -

$	302,920

$	-

107,325 195,595 302,920

$	302,920

ADDITIONS

$                           870,043 35,313

$	905,356

$	10,045

222,605 672,706 895,311

$	905,356

$                       1,000,798 -

$	1,000,798

$	-

214,557 786,241 1,000,798

$	1,000,798

$                           578,139 -

$	578,139

$	-

221,198 356,941 578,139

$	578,139

$                       1,130,634 -

$	1,130,634

$	-

283,912 846,722 1,130,634

$	1,130,634

DEDUCTIONS

$                           857,104 -

$	857,104

$	-

238,482 618,622 857,104

$	857,104

$                       1,024,554 -

$	1,024,554

$	-

228,574 795,980 1,024,554

$	1,024,554

$                           495,826 -

$	495,826

$	-

231,428 264,398 495,826

$	495,826

$                       1,167,123 -

$	1,167,123

$	-

290,398 876,725 1,167,123

$	1,167,123

JUNE 30, 2014

$                           253,883 35,313

$	289,196

$	10,045

140,328 138,823 279,151

$	289,196

$                           217,182 -

$	217,182

$	-

126,433 90,749 217,182

$	217,182

$                           122,376 -

$	122,376

$	-

73,655 48,721 122,376

$	122,376

$                           266,431 -

$	266,431

$	-

100,839 165,592 266,431

$	266,431

The Notes to Financial Statements are an integral part of this statement.

67

CLOVIS UNIFIED SCHOOL DISTRICT COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES STUDENT BODY FUNDS HIGH SCHOOLS
FOR THE FISCAL YEAR ENDED JUNE 30, 2014

BALANCE

STATEMENT 11 Page 2 of 2

BALANCE

Clovis West High School ASSETS
Cash on Hand and in Banks Accounts Receivable Inventory

TOTAL ASSETS

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

TOTAL LIABILITIES

Gateway Continuation High School ASSETS
Cash on Hand and in Banks Inventory

TOTAL ASSETS

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

TOTAL LIABILITIES

Adult School

ASSETS 

Cash on Hand and in Banks Inventory

TOTAL ASSETS

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

TOTAL LIABILITIES

Totals ASSETS
Cash on Hand and in Banks Accounts Receivable Inventory

TOTAL ASSETS

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

TOTAL LIABILITIES

JULY 1, 2013

$	158,219 --

$	158,219

$	-

137,405 20,814 158,219

$	158,219

$                           16,325 -

$	16,325

$	-

-16,325 16,325

$	16,325

$                                496 -

$	496

$	-

-496 496

$	496

$	999,905 --

$	999,905

$	-

625,270 374,635 999,905

$	999,905

ADDITIONS

$                         783,754 51,330
-

$	835,084

$	-

253,331 581,753 835,084

$	835,084

$                           13,182 -

$	13,182

$	-

-13,182 13,182

$	13,182

$                                     --

$	-

$	-

---

$	-

$	4,376,550 51,330 35,313

$	4,463,193

$	10,045

1,195,603 3,257,545 4,453,148

$	4,463,193

DEDUCTIONS

$	795,795 --

$	795,795

$	-

229,778 566,017 795,795

$	795,795

$                             9,801 -

$	9,801

$	-

-9,801 9,801

$	9,801

$                                496 -

$	496

$	-

-496 496

$	496

$	4,350,699 --

$	4,350,699

$	-

1,218,660 3,132,039 4,350,699

$	4,350,699

JUNE 30, 2014

$                         146,178 51,330
-

$	197,508

$	-

160,958 36,550 197,508

$	197,508

$                           19,706 -

$	19,706

$	-

-19,706 19,706

$	19,706

$                                     --

$	-

$	-

---

$	-

$	1,025,756 51,330 35,313

$	1,112,399

$	10,045

602,213 500,141 1,102,354

$	1,112,399

The Notes to Financial Statements are an integral part of this statement.

68

STATEMENT 12 CLOVIS UNIFIED SCHOOL DISTRICT
COMBINING STATEMENT OF ASSETS AND LIABILITIES STUDENT BODY FUNDS INTERMEDIATE SCHOOLS JUNE 30, 2014

ALTA SIERRA
INTERMEDIATE SCHOOL
ASSETS

C. TODD CLARK INTERMEDIATE
SCHOOL

KASTNER INTERMEDIATE
SCHOOL

REYBURN INTERMEDIATE
SCHOOL	TOTAL

Cash on Hand and in Banks	$

TOTAL ASSETS	$

LIABILITIES

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

TOTAL LIABILITIES	$

36,646	$

36,646	$

-	$

6,367 30,279 36,646

36,646	$

85,880	$

85,880	$

-	$

21,746 64,134 85,880

85,880	$

88,114	$

88,114	$

-	$

40,773 47,341 88,114

88,114	$

38,636	$

38,636	$

-	$

13,763 24,873 38,636

38,636	$

249,276

249,276

-

82,649 166,627 249,276

249,276

The Notes to Financial Statements are an integral part of this statement.

69

CLOVIS UNIFIED SCHOOL DISTRICT COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES STUDENT BODY FUNDS INTERMEDIATE SCHOOLS
FOR THE FISCAL YEAR ENDED JUNE 30, 2014

BALANCE

STATEMENT 13 Page 1 of 2

BALANCE

JULY 1, 2013	ADDITIONS	DEDUCTIONS	JUNE 30, 2014 Alta Sierra Intermediate School
ASSETS

Cash on Hand and in Banks

TOTAL ASSETS

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

TOTAL LIABILITIES

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

TOTAL ASSETS

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

TOTAL LIABILITIES

Kastner Intermediate School

ASSETS 

Cash on Hand and in Banks

TOTAL ASSETS

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

TOTAL LIABILITIES

$	46,102	$

$	46,102	$

$	-	$

30,821 15,281 46,102

$	46,102	$

$	98,584	$

$	98,584	$

$	-	$

17,446 81,138 98,584

$	98,584	$

$	36,781	$

$	36,781	$

$	-	$

9,719 27,062 36,781

$	36,781	$

357,089	$

357,089	$

-	$

89,116 267,973 357,089

357,089	$

282,339	$

282,339	$

-	$

95,195 187,144 282,339

282,339	$

212,460	$

212,460	$

-	$

75,046 137,414 212,460

212,460	$

366,545	$	36,646

366,545	$	36,646

-	$	-

113,570	6,367 252,975                         30,279 366,545                         36,646

366,545	$	36,646

295,043	$	85,880

295,043	$	85,880

-	$	-

90,895	21,746 204,148	64,134 295,043	85,880

295,043	$	85,880

161,127	$	88,114

161,127	$	88,114

-	$	-

43,992	40,773 117,135	47,341 161,127	88,114

161,127	$	88,114

The Notes to Financial Statements are an integral part of this statement.

70

CLOVIS UNIFIED SCHOOL DISTRICT COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES STUDENT BODY FUNDS INTERMEDIATE SCHOOLS
FOR THE FISCAL YEAR ENDED JUNE 30, 2014

BALANCE

STATEMENT 13 Page 2 of 2

BALANCE

JULY 1, 2013	ADDITIONS	DEDUCTIONS	JUNE 30, 2014 Reyburn Intermediate School
ASSETS 

Cash on Hand and in Banks

TOTAL ASSETS

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

TOTAL LIABILITIES

Totals ASSETS
Cash on Hand and in Banks

TOTAL ASSETS

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

TOTAL LIABILITIES

$	32,646	$

$	32,646	$

$	-	$

18,586 14,060 32,646

$	32,646	$

$	214,113	$

$	214,113	$

$	-	$

76,572 137,541 214,113

$	214,113	$

160,486	$

160,486	$

-	$

36,672 123,814 160,486

160,486	$

1,012,374	$

1,012,374	$

-	$

296,029 716,345 1,012,374

1,012,374	$

154,496	$

154,496	$

-	$

41,495 113,001 154,496

154,496	$

977,211	$

977,211	$

-	$

289,952 687,259 977,211

977,211	$

38,636

38,636

-

13,763 24,873 38,636

38,636

249,276

249,276

-

82,649 166,627 249,276

249,276

The Notes to Financial Statements are an integral part of this statement.

71

CLOVIS UNIFIED SCHOOL DISTRICT COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES STUDENT BODY FUNDS ELEMENTARY SCHOOLS
FOR THE FISCAL YEAR ENDED JUNE 30, 2014

BALANCE

STATEMENT 14

BALANCE

ELEMENTARY SCHOOL	JULY 1, 2013	ADDITIONS	DEDUCTIONS	JUNE 30, 2014

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

Total

$	14,893 10,607 24,018 21,666 11,635 22,293 19,327 23,752 27,936 10,207 13,008 26,546
8,401 32,148 23,292 4,515 2,344 16,995 28,267 24,217 19,480 19,296 11,297 16,201 33,907 7,962 15,622 25,537 37,041 9,329 20,912 24,720

$	607,371

$          123,580 102,290 110,434 94,695
91,143 77,522 87,791 126,372 127,764 60,849 73,672 131,895 141,593 99,872 71,128 79,883 76,496 74,752 74,737 111,473 69,109 83,870 69,086 62,567 125,818 123,109 44,217 97,379 72,959 75,871 81,738 125,605

$	2,969,269

$	117,873	$ 97,459
111,224 90,720 91,662 94,201 83,977 138,133 113,857 64,897 86,110 138,935 134,395 107,084 77,215 78,540 68,685 69,789 74,816 113,783 69,848 87,809 61,445 58,915 137,289 122,163 48,352 91,107 70,169 70,959 88,029 122,001

$	2,981,441	$

20,600 15,438 23,228 25,641 11,116 5,614 23,141 11,991 41,843 6,159 570 19,506 15,599 24,936 17,205 5,858 10,155 21,958 28,188 21,907 18,741 15,357 18,938 19,853 22,436 8,908 11,487 31,809 39,831 14,241 14,621 28,324

595,199

The Notes to Financial Statements are an integral part of this statement.

72

SCHEDULE 1 CLOVIS UNIFIED SCHOOL DISTRICT
GOVERNING BOARD AND ORGANIZATION JUNE 30, 2014

GOVERNING BOARD

MEMBER

Brian D. Heryford
Jim Van Volkinburg, D.D.S. Elizabeth J. Sandoval Christopher Casado
Ginny L. Hovsepian Richard Lake, CPA Sandra A. Bengel

OFFICE

President
Vice President Clerk
Member Member Member Member

TERM EXPIRES

December 2016 December 2014 December 2014 December 2016 December 2016 December 2016 December 2014

DISTRICT ADMINISTRATORS

Janet Young, Ed.D. Michael Johnston Cheryl Rogers, Ed.D. Michael Clear
Carlo Prandini, Ph.D. Larry Corum

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

ORGANIZATION

The Clovis Unified School District was established in 1960 and is located in Fresno County. The District encompasses an area of approximately 198 square miles. District boundaries include portions of the city of Fresno, Clovis, and unincorporated areas of Fresno County. There were no changes in boundaries in 2014-15. The District currently operates thirty-two 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 (CART) as a joint high school with Fresno Unified School District.

73

TK/K-3 Regular

CLOVIS UNIFIED SCHOOL DISTRICT SCHEDULE OF AVERAGE DAILY ATTENDANCE FOR THE FISCAL YEAR ENDED JUNE 30, 2014

Second Period Report 5B6A20ED

12,008.71

SCHEDULE 2

Annual Report 1C5F177B

12,002.65

Extended Year Special Education Special Education - NPS
Extended Year Special Education - NPS Subtotal TK/K-3

Grades 4-6 Regular
Extended Year Special Education Special Education - NPS
Extended Year Special Education - NPS Community Day School
Subtotal Grades 4-6

Grades 7-8 Regular
Extended Year Special Education Special Education - NPS Community Day School
Subtotal Grades 7-8

Grades 9-12 Regular
Extended Year Special Education Extended Year Special Education - NPS Community Day School
Subtotal Grades 9-12

Grand Total

Clovis Online Charter

Grades 7-8 (100% non-classroombased) Grades 9-12 (100% non-classroombased)

Grand Total

12.99 -
0.11 12,021.81

9,008.65 7.85 1.34 0.19 10.53 9,028.56

6,146.87 3.45
-22.62
6,172.94

11,667.36 11.38 0.17 49.09 11,728.00

38,951.31

E6DF98DA

39.20 316.91

356.11

12.99 0.11 0.11
12,015.86

9,005.44 7.85 1.66 0.19 10.86 9,026.00

6,135.03 3.45 0.11 20.72 6,159.31

11,587.78 11.38 0.17 44.68 11,644.01

38,845.18

E0F3794C

41.59 323.58

365.17

See accompanying Notes to Supplementary Information.

74

SCHEDULE 3 CLOVIS UNIFIED SCHOOL DISTRICT
SCHEDULE OF INSTRUCTIONAL TIME FOR THE FISCAL YEAR ENDED JUNE 30, 2014

NUMBER OF	NUMBER OF

GRADE LEVEL

Kindergarten Grades 1-3 Grades 4-8
Grades 9-12

1986-87 MINUTES REQUIREMENT

36,000 50,400 54,000
64,800

RECALCULATED 1986-87 MINUTES REQUIREMENT*

35,000 49,000 52,500
63,000

2013-14 ACTUAL MINUTES

36,045 56,475 56,420
65,173

DAYS TRADITIONAL CALENDAR

180 180 180
180

DAYS MULTITRACK CALENDAR

N/A N/A N/A
N/A

STATUS

In Compliance In Compliance In Compliance
In Compliance

* Amounts reduced as permitted by Education Code Section 46201.2(a).

Note: The District participated in Longer Day incentives and did not meet or exceed its target funding.

See accompanying Notes to Supplementary Information.

75

SCHEDULE 4 CLOVIS UNIFIED SCHOOL DISTRICT
SCHEDULE OF FINANCIAL TRENDS AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2014

General Fund	(BUDGET) 2015*	2014	2013	2012

Revenues and Other Financial

Sources	$	339,008,843	$	321,321,110	$	301,370,539	$	300,566,978

Expenditures

Other Uses and Transfers Out

Total Outgo

348,104,528 5,944,885

354,049,413

313,823,424 11,127,883

324,951,307

299,751,611 3,479,461

303,231,072

285,985,400 7,027,161

293,012,561

Change in Fund Balance

Ending Fund Balance

Available Reserves

Reserved for Economic Uncertainties

Unassigned Fund Balance

$	15,040,570	$

$	37,712,610	$

$	32,529,932	$

$	-	$

$	32,529,932	$

(3,630,197)	$

52,753,180	$

46,138,952	$

-	$

46,138,952	$

(1,860,533)	$

56,383,377	$

50,982,537	$

18,252,991	$

32,729,546	$

7,554,417

58,243,910

47,828,159

-

47,828,159

Available Reserves as a

Percentage of Total Outgo	9.19%	14.20%	16.81%	16.32%

Total Long-Term Debt	**	$	494,762,907	$	428,679,466	$	378,416,559

Average Attendance at P-2 ***	39,341	38,951	37,833	37,216

The General Fund balance has decreased by $5,490,730 over the past two years. The fiscal year 2014-15 budget projects a decrease of $15,040,570. For a district this size, the State recommends available reserves of at least 2% of total General Fund expenditures, transfers out, and other uses. Clovis Unified School District has met the State's minimum requirements.

Average daily attendance has increased by 1,735 ADA over the past two years. An increase of 390 ADA is anticipated during the fiscal year 2014-15.

*	Based on July 1 Budget, included for analytical purposes only and has not been subjected to audit. ** Not determined
*** Excludes Charter School ADA

See accompanying Notes to Supplementary Information.

76

CLOVIS UNIFIED SCHOOL DISTRICT SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2014

SCHEDULE 5 Page 1 of 2

FEDERAL GRANTOR/PASS-THROUGH GRANTOR/PROGRAM OR CLUSTER TITLE

GENERAL FUND

U.S. Department of Education

Direct:

FEDERAL CATALOG NUMBER

PASS-THROUGH ENTITY IDENTIFYING NUMBER

FEDERAL EXPENDITURES

Indian Education	84.060	10011	$	97,665

Passed through the California Department of Education (CDE):

 NCLB Title I	84.010	14329  NCLB Title I-Part A, Program Improvement	84.010	14957  NCLB Title I, Part D	84.010	14357
IDEA, Education for the Handicapped

Local Assistance                                                                       84.027                                 13379 Preschool Local Entitlement                                                    84.027                                 13682 Preschool Grant                                                                        84.173                                 13430 Preschool Staff Development                                                   84.173                                 13431 Mental Health Services                                                            84.027                                 14468 Early Interventions, Part C                                                       84.181                                 23761 VATEA, Secondary                                                                     84.048                                 14894 Workability II, Transitions Partnership                                       84.158                                 10006 NCLB Title II, Part A, Improving Teacher Quality                    84.367                                 14341 NCLB Title III, LEP                                                                    84.365                                 14346 NCLB Title III, Immigration Education                                      84.365                                 15146
AP Exams Fee Assistance	N/A	23900

5,697,698 21,113 41,110

5,095,400 685,218 103,143 1,423 451,432 81,623 199,030 156,608 774,274 217,076 40,636 36,540

Total Department of Education	13,699,989

U.S. Department of Defense: Direct:
ROTC	12.357	49,043

Total Department of Defense	49,043

U.S. Department of Health and Human Services: Passed through CDE:
MediCal Reimbursements	93.778	10013	982,533

Total Department of Health and Human Services	982,533

Major Programs Tested

See accompanying Notes to Supplementary Information.

77

CLOVIS UNIFIED SCHOOL DISTRICT SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2014

SCHEDULE 5 Page 2 of 2

FEDERAL GRANTOR/PASS-THROUGH GRANTOR/PROGRAM OR CLUSTER TITLE

FEDERAL CATALOG NUMBER

PASS-THROUGH ENTITY IDENTIFYING NUMBER

FEDERAL EXPENDITURES

U.S. Department of Agriculture: Direct:
SOS Grants

Total Department of Agriculture

Total General Fund

ADULT FUND

U.S. Department of Education: Direct:
PELL Grant

Passed through CDE:

Adult Education and Literacy Act ASE/GED
ESL Citizenship

English Literacy and Civics Education Grant Carl D. Perkins Career and Technical Education

Total Department of Education

CAFETERIA FUND
U.S. Department of Agriculture: Passed through CDE:

10.unk

84.063

84.002A 84.002A 84.002A 84.048

$	27,054

27,054

14,758,619

535,441

13978	204,418 14508	200,480 14109                                          60,710 14893                                          51,283

1,052,332

 National School Lunch Program
 Especially Needy Breakfast Program  Basic Breakfast Program
 Meal Supplements

10.555	13396 10.553	13526 10.553	13390
10.555	13528

6,455,368 1,504,064 51,893
103,030

Total Department of Agriculture

Total Federal Expenditures

Total Federal Expenditures

MediCal Reimbursements (Unspent)

Total Federal Revenues

Major Programs Tested

Reconciliation of Federal Awards

93.778	10013

8,114,355

$	23,925,306

$	23,925,306

277,486

$	24,202,792

See accompanying Notes to Supplementary Information.

78

SCHEDULE 6

CLOVIS UNIFIED SCHOOL DISTRICT RECONCILIATION OF ANNUAL FINANCIAL AND BUDGET REPORT FORM
WITH AUDITED FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2014

June 30, 2014 Annual Financial and Budget Report Form Fund Balances

Deferred Maintenance Fund

$	134,658

Building Fund

$	39,749,561

School Facilities Fund

$	1,066,901

Adjustments and Reclassifications Decrease Prepaid Expenditures for:
Land Improvements

Increase Accounts Payable Buildings and Improvements

(28,453)

-

-

(1,572,294)

-

(953,138)

June 30, 2014 Audited Financial

Statements Fund Balances	$	106,205	$	38,177,267	$	113,763

See accompanying Notes to Supplementary Information.

79

CLOVIS UNIFIED SCHOOL DISTRICT SCHEDULE OF CHARTER SCHOOLS
FOR THE FISCAL YEAR ENDED JUNE 30, 2014

CHARTER SCHOOL

Clovis Online School

SCHEDULE 7

INCLUSION IN FINANCIAL STATEMENTS

Included

See accompanying Notes to Supplementary Information.

80

CLOVIS UNIFIED SCHOOL DISTRICT NOTES TO SUPPLEMENTARY INFORMATION
JUNE 30, 2014

1.	PURPOSE OF SCHEDULES

A. Schedule of Average Daily Attendance

Average daily attendance 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 entities. This schedule provides information regarding the attendance of students at various grade spans and in different programs.

B. Schedule of Instructional Time

Districts, including basic aid districts, must maintain their instructional minutes at the 1986-87 requirements, as required by Education Code Section 46201. This schedule is required for all districts, including basic aid districts.

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 46201 through 46206.

C. 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.

D. Schedule of Expenditures of Federal Awards

Basis of Presentation

The accompanying schedule of expenditures of federal awards includes the federal grant activity of Clovis Unified School District and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of OMB Circular A-133, Audit of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the combined and combining financial statements.

OMB Circular A-133 requires a disclosure of the financial activities of all Federally funded programs. This schedule was prepared to comply with OMB Circular A-133.

E. Reconciliation of Annual Financial and Budget Report Form with Audited Financial Statements

This schedule provides the information necessary to reconcile the fund balances of all funds and the total liabilities balance of the general long-term debt as reported on the SACS Form to the audited financial statements.

F. Schedule of Charter Schools

This schedule provides a list of Charter Schools sponsored by the District and specifies whether the Charter Schools are included in these financial statements.

81

JLG

Jeanette L. Garcia, CPA

Jeanette L. Garcia & Associates 1980 Orange Tree Lane, Suite 280
Redlands, CA 92374 Phone: (909) 335-6100 Fax: (909) 335-6122 www.jlgcpa.net

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

Independent Auditor’s Report

To the 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 statements of the governmental activities, each major fund, and the aggregate remaining fund information of Clovis Unified School District, as of and for the year ended June 30, 2014, 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 5, 2014.

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 entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

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.

Member:

American Institute of Certified Public Accountants

California Society of Certified Public Accountants

82

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.

Redlands, California December 5, 2014

83

JLG

Jeanette L. Garcia, CPA

Jeanette L. Garcia & Associates 1980 Orange Tree Lane, Suite 280
Redlands, CA 92374 Phone: (909) 335-6100 Fax: (909) 335-6122 www.jlgcpa.net

REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE

Independent Auditor’s Report

To the Governing Board Clovis Unified School District Clovis, California

Report on Compliance for Each Major Federal Program

We have audited Clovis Unified School District’s compliance with the types of compliance requirements described in the OMB Circular A-133 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, 2014. Clovis Unified School District's major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of audit findings and questioned costs.

Management’s Responsibility

Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants 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 OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 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.

Member:

American Institute of Certified Public Accountants

California Society of Certified Public Accountants

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 on Clovis Unified School District's compliance.

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, 2014.

84

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 OMB Circular A-133, 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 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 OMB Circular A-133. Accordingly, this report is not suitable for any other purpose.

Redlands, California December 5, 2014

85

JLG

Jeanette L. Garcia, CPA

Jeanette L. Garcia & Associates 1980 Orange Tree Lane, Suite 280
Redlands, CA 92374 Phone: (909) 335-6100 Fax: (909) 335-6122 www.jlgcpa.net

INDEPENDENT AUDITOR'S REPORT ON STATE COMPLIANCE

To the Governing Board Clovis Unified School District Clovis, California

Report on State Compliance

We have audited the District’s compliance with the types of compliance requirements described in the Standards and Procedures for Audits of California K-12 Local Education Agencies 2013-14, published by the California Education Audit Appeals Panel that could have a direct and material effect on each of the District’s state programs identified below for fiscal year ended June 30, 2014.

Management’s Responsibility for State Compliance

Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its state programs.

Auditor’s Responsibility

Our responsibility is to express an opinion on compliance for each applicable program as identified in the State’s audit guide, Standards and Procedures for Audits of California K-12 Local Education Agencies 2013-14 published by the Education Audit Appeals Panel. 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 State’s audit guide Standards and Procedures for Audits of California K-12 Local Education Agencies 2013-14 published by the Education Audit Appeals Panel. Those standards and audit guide 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 direct and material effect on the state programs noted below occurred. An audit includes examining, on a test basis, evidence about the District’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of the District’s compliance with those requirements.

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

Member:

American Institute of Certified Public Accountants

California Society of Certified Public Accountants

Attendance Accounting: Attendance Reporting
Teacher Certification and Misassignments Kindergarten Continuance
Independent Study Continuation Education

86

Procedures in Audit Guide

6 3 3 23 10

Procedures Performed

Yes Yes Yes Yes Yes

Procedures in Audit Guide

Procedures Performed

Instructional Time for School Districts Instructional Materials General Requirements Ratios of Administrative Employees to Teachers Classroom Teacher Salaries
Early Retirement Incentive Gann Limit Calculation
School Accountability Report Card Juvenile Court Schools
Local Control Funding Formula Certification California Clean Energy Jobs Act
After School Education and Safety Program: General Requirements
After School Before School
Education Protection Account Funds Common Core Implementation Funds Unduplicated Local Control Funding
Formula Pupil Counts
Contemporaneous Records of Attendance, for Charter Schools Mode of Instruction, for Charter Schools
Nonclassroom-Based Instruction/Independent Study, for Charter Schools Determination of Funding for Nonclassroom-Based Instruction,
for Charter Schools
Annual Instructional Minutes - Classroom Based, for Charter Schools Charter School Facility Grant Program

10	Yes 8	Yes 1	Yes 1	Yes
4	No (see below) 1                              Yes
3	Yes

8	Not Applicable 1                              Yes
3	Yes

4                              Yes 5                              Yes
6	Not Applicable 1                              Yes
3	Yes

3                              Yes 8                              Yes
1	Not Applicable 15                             Yes

3	Yes
4	Not Applicable 1                              Yes

We did not test compliance for Early Retirement Incentive because the District did not participate in the State program.

Opinion on State Compliance

In our opinion, Clovis Unified School District complied, in all material respects, with the compliance requirements referred to above that are applicable to the statutory requirements listed in the schedule above for the year ended June 30, 2014.

Redlands, California December 5, 2014

87

Findings and Recommendations

CLOVIS UNIFIED SCHOOL DISTRICT SCHEDULE OF AUDIT FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2014

Section I – Summary of Auditor’s Results

Financial Statements

Type of auditor's report issued:

Internal control over financial reporting: Material weakness(es) identified? Significant deficiencies identified?

Noncompliance material to financial statements noted?

Federal Awards

Internal control over major programs: Material weakness(es) identified? Significant deficiencies identified?

Type of auditor's report issued on compliance for major programs:

Any audit finding disclosed that are required

to be reported in accordance with Circular A-133, Section .510(a)?

Identification of major programs:

Unmodified

Yes Yes

Yes

Yes Yes

Unmodified

Yes

X	No

X	None Reported

X	No

X	No

X	None reported

X	No

CFDA Number(s)

84.010
10.553, 10.555

Name of Federal Program of Cluster

Title I
Child Nutrition Cluster

Federal Awards 

Dollar threshold used to distinguish between Type A and Type B programs:

Auditee qualified as low-risk auditee?

State Awards

Internal control over state programs: Material weakness(es) identified? Significant deficiencies identified?

Noncompliance material to financial statements noted?

Type of auditor's report issued on compliance for

$	717,759

Yes

Yes Yes

Yes

X	No

X	No

X	None reported

X	No

state programs:	Unmodified

88

CLOVIS UNIFIED SCHOOL DISTRICT SCHEDULE OF AUDIT FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2014

Section II – Financial Statement Findings

None Reported.

Section III – Federal Award Findings and Questioned Costs

None Reported.

Section IV – State Award Findings and Questioned Costs

None Reported.

89

CLOVIS UNIFIED SCHOOL DISTRICT
STATUS OF PRIOR YEAR FINDING AND RECOMMENDATIONS FOR THE FISCAL YEAR ENDED JUNE 30, 2014

Prior Year Findings and Recommendations:

FINDING 2013-1 Code 30000
Internal Control Over Financial Reporting

During the substantive portion of the audit, the auditor found numerous discrepancies in general ledger accounts, such as understatements and overstatements of payables, receivables and prepaid expenditures for which the auditor proposed adjustments. We also made adjustments to the cash and interfund receivable and payable accounts to correct the effects of the general ledger “999999 Fund Resource DT/DF Acct.” It appears the District’s system of internal control over financial reporting failed to detect these misstatements.

RECOMMENDATION

The District needs to examine its system of internal control over financial reporting. More care should be taken when processing transactions at year-end to ensure that all payables, receivables and prepaid expenditures are properly recorded, furthermore, an effort should be made to reconcile the 999999 account at year-end to minimize the effect on cash influences.
DISTRICT RESPONSE

We will be reexamining our process of closing our general ledger. Most of the misstatements referred to in the finding are simply presentation and disclosure issues that did not affect our ending fund balance.

Current Status: The prior year finding is resolved. The “999999” amounts affecting the Due To/From accounts were greatly reduced from last year and there is a mechanism to document what journal entries make up each clearing entry.

90