CLOVIS UNIFIED SCHOOL DISTRICT

ANNUAL FINANCIAL REPORT

JUNE 30,2017

CLOVIS UNIFIED SCHOOL DISTRICT

TABLE OF CONTENTS JUNE 30, 2017

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

REQUIRED SUPPLEMENTARY INFORMATION
General Fund - Budgetary Comparison Schedule	74 Schedule of Other Postemployment Benefits (OPEB) Funding Progress	75 Schedule of the District's Proportionate Share of the Net Pension Liability	76 Schedule of District Contributions	77 Note to Required Supplementary Information	78

SUPPLEMENTARY INFORMATION
Schedule of Expenditures of Federal Awards	80 Local Education Agency Organization Structure	82 Schedule of Average Daily Attendance	83 Schedule of Instructional Time	85 Reconciliation of Annual Financial and Budget Report With Audited Financial Statements	86 Schedule of Financial Trends and Analysis	87 Schedule of Charter Schools	88 Combining Statements - Non-Major Governmental Funds
Combining Balance Sheet                                                                                                                         89 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances                                91
Combining Statements - Agency Funds
Combining Balance Sheet	93 Combining Statement of Assets and Liabilities - Student Body Funds	94 Combining Statement of Changes in Assets and Liabilities for
High School and Intermediate School Student Body Funds	95 Combining Statement of Changes in Assets and Liabilities - Student Body Funds
High Schools	96 Combining Statement of Changes in Assets and Liabilities - Student Body Funds
Intermediate Schools	99 Combining Statement of Changes in Assets and Liabilities - Student Body Funds
Elementary Schools                                                                                                                               101 Note to Supplementary Information                                                                                                              102

CLOVIS UNIFIED SCHOOL DISTRICT

TABLE OF CONTENTS JUNE 30, 2017

INDEPENDENT AUDITOR'S REPORTS
Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government
Auditing Standards	105 Report on Compliance for Each Major Program and Report on Internal Control Over
Compliance Required by the Uniform Guidance                                                                                         107 Report on State Compliance                                                                                                                          109

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Summary of Auditor's Results	113 Financial Statement Findings	114 Federal Awards Findings and Questioned Costs	115 State Awards Findings and Questioned Costs	116 Summary Schedule of Prior Audit Findings	117

FINANCIAL SECTION

1

INDEPENDENT AUDITOR'S REPORT

Governing Board
Clovis Unified School District Clovis, California

Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Clovis Unified School District (the District) as of and for the year ended June 30, 2017, and the related notes to the financial statements, which collectively comprise the District's basic financial statements as listed in the table of contents.

Management's Responsibility for the Financial Statements

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

Auditor's Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the 2016-2017 Guide for Annual Audits of K-12 Local Education Agencies and State Compliance Reporting, issued by the California Education Audit Appeals Panel as regulations. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the District'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 District'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.

2

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, 2017, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management's discussion and analysis on pages 5 through 14, budgetary comparison schedule on page 74, schedule of other postemployment benefits funding progress on page 75, schedule of the district's proportionate share of net pension liability on page 76, and the schedule of district contributions on page 77, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Information

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

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

3

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated November 30, 2017, on our consideration of the Clovis Unified School District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of Clovis Unified School District's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Clovis Unified School District's internal control over financial reporting and compliance.

Fresno, California November 30, 2017

4

CLOVIS UNIFIED SCHOOL DISTRICT Management's Discussion and Analysis June 30, 2017

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, 2017.

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.

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, 2017

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

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

Type of Statements	Government-wide
	Governmental Funds	Fiduciary Funds

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

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

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

Required financial statements

Type of asset/liability information

Type of inflow/outflow information

•Statement of net position

•Statement of activities

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

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

•Balance sheet

•Statement of revenues, expenditures & changes in fund balances

•Reconciliation to government-wide financial statements

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

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

•Statement of fiduciary net position

•Statement of changes in fiduciary net position

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

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

6

CLOVIS UNIFIED SCHOOL DISTRICT

MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2017

GOVERNMENT-WIDE STATEMENTS

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

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

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

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

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

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

FUND FINANCIAL STATEMENTS

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

	Governmental funds - Most of the District's basic services are included in governmental funds, which generally focus on (1) how cash and other financial assets, that can readily be converted to cash, flow in and out and (2) the balances left at year-end that are available for spending. Consequently, the governmental funds statements provide a detailed short-term view that helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance the District's programs. Because this information does not encompass the additional long-term focus of the government-wide statements, we provide additional information at the bottom of the governmental funds statements that explain the relationship (or differences) between them.

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

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CLOVIS UNIFIED SCHOOL DISTRICT

MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2017

	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.

FINANCIAL ANALYSIS OF THE DISTRICT AS A WHOLE

Net Position: The District's combined net position was $71.0 million on June 30, 2017, increasing by $19.8 million (38.67 percent). (See Table A-1.)

Table A-1

(Amounts in millions)	Governmental Activities	Percentage

Assets

Current and Other Assets Capital Assets
Total Assets

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

Total Net Position

2017

$	288.5	$ 928.1
1,216.6 92.9

71.3 769.2 377.9 1,218.4 20.1

441.4 57.4
(427.8)

$	71.0	$

2016

287.9 900.9 1,188.8 83.4

60.2 781.5 316.6 1,158.3 62.7

436.7 57.2
(442.7)

51.2

Change

0.21% 3.02% 2.34% 11.39%

18.44% -1.57% 19.36% 5.19%
-67.94%

1.08% 0.35% 3.37%
38.67%

Changes in Net Position: The District's total governmental revenues were $530.7 million (see Table A-2). Property taxes and state aid formula accounted for most of the District's revenue, with state aid contributing about 54¢ of every dollar raised and property taxes contributing about 21¢ of every dollar raised. Another 15¢ came from categorical programs, and the remainder came from fees charged for services of 1¢ and miscellaneous sources of 9¢.

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CLOVIS UNIFIED SCHOOL DISTRICT

MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2017

The total cost of all governmental programs and services was $510.9 million (see Table A-2). The District's expenses are predominantly related to educating and caring for students (78 percent). The purely administrative activities of the District accounted for just 4 percent of total costs. Plant services was $50.5 million, accounting for ten percent of the District's expenses. Revenues surpassed expenses, increasing net position by $19.8 million over last year.

Table A-2

(Amounts in millions)	Governmental Activities	Percentage

Revenues

General revenues:

Federal and state aid not restricted Property taxes
Other

Program Revenues: Charges for services
Operating grants and contributions Capital grants and contributions
Total Revenues Expenses
Instruction related Pupil services
General administration Plant services
Other

Total Expenses

Change in Net Position

2017	2016

$             287.3        $             282.6 108.3                       100.3
47.9	37.1

7.5                           6.2 79.7                         78.8 -                            3.7 530.7                       508.7

337.1                       340.4 62.2                         57.1 22.2                         21.0 50.5                         48.6 38.9                         36.2 510.9                       503.3

$	19.8	$	5.4

Change

1.66% 7.98% 29.11%

20.97% 1.14%
-100.00% 4.32%

-0.97% 8.93% 5.71% 3.91% 7.46% 1.51%

266.67%

GOVERNMENTAL ACTIVITIES

Revenues for the District's governmental activities were $530.7 million, while total expenses were $510.9 million. The increase in net position for governmental activities was $19.8 million in 2017.

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

	Staffing formulas that maintain equality

	Maintaining an awareness of the changing fiscal issues and active participation from the Employee Compensation Committee and Employee Benefit Committee

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CLOVIS UNIFIED SCHOOL DISTRICT

MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2017

Table A-3 presents the cost of six major District activities: instruction, student transportation services, all other pupil services, food services, general administration, and plant services. The table also shows each activity's net cost (total cost less fees generated by the activities and intergovernmental aid provided for specific programs). The net cost shows the financial burden that was placed on the District's taxpayers by each of these functions.

Table A-3

Total Cost of Services	Net Cost of Services

Instruction related Student transportation All other pupil services Food services
General administration Plant services
Other

Total

2017	2016	2017	2016

$	337.1	$	340.4	$	277.0	$	279.4 10.2                      9.4                    10.2                      9.4 37.8                    34.6                    30.8                    28.1 14.2                    13.1                      1.2                      0.5 22.2                    21.0                    20.5                    19.3 50.5                    48.6                    49.4                    47.9 38.9                    36.2                    34.6                    30.1
$	510.9	$	503.3	$	423.7	$	414.7

	The cost of governmental activities this year was $510.9 million.

	Some of the costs were paid by the users of the District's programs ($7.5 million).

	The federal and state governments subsidized certain programs with operating grants and contributions ($79.7 million).

	Most of the District's costs, $395.6 million, however, were paid for by District taxpayers and the taxpayers of California, in general.

	Governmental activities were paid for with $108.3 million in property taxes, $287.3 million of unrestricted federal and 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, 2017

THE DISTRICT'S FUNDS

As the District completed this year, our governmental funds reported a combined fund balance of $185.7 million which is a decrease of $18.1 million from last year (Table A-4).

Table A-4

(Amounts in millions)

June 30, 2017

Balance

June 30, 2016	Variance

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

Total	$

91.7	$	81.6	$	10.1 3.0                        1.8                        1.2 3.9                        3.1                        0.8 1.6                        2.6                      (1.0) 7.6                        8.7                      (1.1) 1.3                        1.9                      (0.6)
20.8	56.2	(35.4) 11.1                        3.8                        7.3
1.5	1.5	-8.3	7.3                        1.0
33.9	34.3	(0.4) 1.0                        1.0                         -
185.7	$	203.8	$	(18.1)

The primary reasons for the changes are:
a. The fund balance in the General Fund increased $10.1 million to $91.7 million. The net increase is due to an overall increase in revenues; one-time and ongoing.
b. The special revenue funds reported a net decrease of $0.7 million, the majority of the decrease was due to one-time capital outlay expenditures in the Cafeteria Fund.
c. The capital projects funds showed a decrease of $27.1 million. This overall decrease is due to ongoing construction/modernization projects. The majority of these costs were paid for utilizing bond proceeds held and spent within the Building Fund.
d. The Bond Interest and Redemption Fund reported a decrease of $0.4 million due to bond principal and interest payments.

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CLOVIS UNIFIED SCHOOL DISTRICT

MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2017

GENERAL FUND BUDGETARY HIGHLIGHTS

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

	Net increases in both revenue and expense for federal, state and local grant awards. 	Posting of deferred categorical revenue.
	One-time funds to pay down the mandate claim reimbursements owed to the District.
	GASB Statement No. 68 requires the District to recognize the State’s share of the District’s unfunded CalSTRS liability. This resulted in a revenue and expenditure adjustment of $3.2 million.
	The Board approved a three percent salary increase for all District employees.
	The Adopted Budget's revenues over expenditures resulted in the District anticipating a surplus of
$14.2 million. The Adopted Budget was structured in such a way that the District could manage any changes from the State. The LCFF gap closure percentage increased from 54.84 percent at Adopted and ended the year with an actual gap closure of 56.08 percent. The projected ADA growth increased from 480 at Adopted Budget to an actual P-2 ADA growth of 696. The LCFF Entitlement ended with an increase of $2.0 million over the anticipated increase at Adopted. Actual revenues to expenditures resulted in a surplus of
$10.1 million, however $1.9 million of the fund balance is non-spendable, $2.1 million is restricted for restricted programs and $11.8 million is assigned for local carryover, site and department carryover, student computer refresh, and LCAP Supplemental programs.

CAPITAL ASSET AND DEBT ADMINISTRATION

Capital Assets

By June 30, 2017, the District had invested $928.1 million in a broad range of capital assets, including school buildings, athletic facilities, computer and audio visual equipment, and administrative offices. (See Table A-5.) This amount represents a net increase of $27.2 million or 3.02 percent over last year. Total depreciation expense for the year was $26.9 million.

Table A-5

Governmental Activities	Percentage

Land

Land improvements Buildings and improvements Equipment
Construction in progress

Total

2017	2016

$                90.6        $                77.5 49.6                          48.8
702.1	615.2 36.3                          36.6 49.5	122.8
$	928.1	$	900.9

Change 16.90%
1.64% 14.13% -0.82% -59.69%
3.02%

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CLOVIS UNIFIED SCHOOL DISTRICT

MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2017

The District has work in progress related to modernization projects at eleven district sites. In addition to the modernizations at the school sites, the District is in the final stages of the modernization of the District Office and the completion of the Lamonica Stadium and Veteran’s Memorial Stadium handrail projects. The District is currently in the design phase for an additional four modernizations of various school sites. The projects will primarily be funded with revenue from Measure A and interest on investments.

In 2017-2018, the District projects spending another $22,510,494 on above mentioned work in progress projects. The projects scheduled to commence in 2017-2018 are projected to cost $9,371,320 in their entirety.

Long-Term Obligations

At year-end the District had $769.2 million in long-term obligations outstanding discussed below. This is a decrease of 1.57 percent from last year, as shown in Table A-6.

Table A-6

Governmental Activities	Percentage

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

Total

2017	2016

$	499.1	$	509.9 6.0                             7.7 0.6                             0.3 2.1                             1.6 1.9                             2.5
259.5	259.5

$	769.2	$	781.5

Change

-2.12% -22.08%
100.00% 31.25% -24.00% 0.00%
-1.57%

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

Net Pension Liability

As of June 30, 2015, the District implemented GASB Statement No. 68, Accounting and Financial Reporting for Pensions – and amendment of GASB Statement No. 27, which required the District to recognize its proportionate share of the unfunded pension obligation for CalSTRS and CalPERS. As of June 30, 2017, the District reported Deferred Outflows from pension activities $91.7 million, Deferred Inflows from pension activities of
$20.1 million, and a Net Pension Liability of $377.9 million.

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CLOVIS UNIFIED SCHOOL DISTRICT

MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2017

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 2013-2014 fiscal year was the first year of the Local Control Funding Formula (LCFF). The LCFF attempts to fund students 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 unduplicated pupil percentage eligible for free-reduced meals, English language learners, homeless, and foster youth. If a District has 55 percent or more unduplicated count, they become eligible for the concentration grants. Clovis Unified's unduplicated count averages a 42-45 percent of the total student population and thus is not eligible for this grant.
	Enrollment growth and student attendance is key to the District's financial projections. The District has consistently seen growth over the years and anticipates this trend to continue.
	The continued improvement of the economy within the State of California.
	The State continues to allocate one-time discretionary funds to the District. Fiscal year 2017-2018 will be the third consecutive year of one-time funds allocated by the State. This method of allocating funds makes it difficult for the District to make ongoing decisions.

CONTACTING THE DISTRICT'S FINANCIAL MANAGEMENT

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

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CLOVIS UNIFIED SCHOOL DISTRICT

STATEMENT OF NET POSITION JUNE 30, 2017

Governmental

ASSETS

Deposits and investments Receivables
Prepaid expenses Stores inventories
Nondepreciable capital assets

Activities

$      262,249,802 23,584,560 1,004,182 1,604,546
140,105,035

Capital assets being depreciated Accumulated depreciation
Total Assets

DEFERRED OUTFLOWS OF RESOURCES Deferred charge on refunding
Deferred outflows of resources related to pensions Total Deferred Outflows of Resources

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

DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources related to pensions

1,127,793,551 (339,753,476)
1,216,588,200

1,216,826 91,687,297 92,904,123

46,703,932 4,319,829 20,279,535

26,951,875 742,218,759 769,170,634 377,965,239 1,218,439,169

20,074,701

NET POSITION

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

Total Net Position

441,414,436

34,964,138 12,610,339 2,195,904 7,605,809
(427,812,173)

$	70,978,453

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

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CLOVIS UNIFIED SCHOOL DISTRICT

STATEMENT OF ACTIVITIES

FOR THE YEAR ENDED JUNE 30, 2017

Net (Expenses) Revenues and
Program Revenues	Changes in

Functions/Programs

Governmental Activities:

Charges for Services and
Expenses	Sales

Operating Grants and
Contributions

Net Position Governmental
Activities

Instruction

Instruction-related activities: Supervision of instruction Instructional library, media, and
technology

School site administration Pupil services:
Home-to-school transportation Food services
All other pupil services Administration:
Data processing

All other administration Plant services
Ancillary services Community services
Interest on long-term obligations Other outgo
Total Governmental Activities

$277,208,109

23,827,741

6,489,336 29,596,755

10,160,425 14,243,312 37,837,911

3,645,271 18,535,212 50,559,396 12,034,221 807,724 25,154,496 859,914
510,959,823

$	132,148

3,027

--

-3,671,803 22,884

-175,731 743,867 -
--
2,760,359

$	7,509,819

$ 49,267,704

9,229,252

176,759 1,329,418

-9,372,398 6,955,374

18,380 1,443,893 429,019 51,752
--
1,429,769

$ 79,703,718

$ (227,808,257)

(14,595,462)

(6,312,577) (28,267,337)

(10,160,425) (1,199,111) (30,859,653)

(3,626,891) (16,915,588) (49,386,510) (11,982,469) (807,724) (25,154,496)
3,330,214

(423,746,286)

General revenues and subventions:

Property taxes, levied for general purposes Property taxes, levied for debt service Taxes levied for other specific purposes
Federal and State aid not restricted to specific purposes
Interest and investment earnings Interagency revenues
Special and extraordinary items Miscellaneous
Subtotal, General Revenues Change in Net Position
Net Position - Beginning

Net Position - Ending

71,906,673 36,142,838 218,112

287,289,728 2,538,833 1,281,080
(7,226,455) 51,400,354
443,551,163 19,804,877 51,173,576
$	70,978,453

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

16

CLOVIS UNIFIED SCHOOL DISTRICT

GOVERNMENTAL FUNDS BALANCE SHEET
JUNE 30, 2017

General Fund
ASSETS

Building

Fund

Bond Interest and Redemption
Fund

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

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

$      128,344,187 15,435,727 215,106
514,202 1,281,097
$	145,790,319

$        38,354,171 11,388,566 4,319,829 54,062,566

1,939,299 2,093,814 -11,822,248 75,872,392 91,727,753

$	145,790,319

$	31,754,386 101,300 461,135
--
$	32,316,821

$          5,966,217 5,557,213
-11,523,430

-20,793,391 -
--
20,793,391

$	32,316,821

$	33,910,046 ----
$	33,910,046

$	----

-33,910,046 -
--
33,910,046

$	33,910,046

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

17

Non-Major Governmental
Funds

Total Governmental
Funds

$        31,544,632 3,325,479 6,586,948 489,980
323,449 $	42,270,488

$          2,014,268 910,875
-

2,925,143

$      225,553,251 18,862,506 7,263,189 1,004,182 1,604,546
$	254,287,674

$        46,334,656 17,856,654 4,319,829
68,511,139

816,929 21,081,937 5,114,344 12,332,135 -
39,345,345

2,756,228 77,879,188 5,114,344 24,154,383 75,872,392
185,776,535

$	42,270,488	$	254,287,674

17

CLOVIS UNIFIED SCHOOL DISTRICT

RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION
JUNE 30, 2017

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

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

Expenditures relating to contributions made to pension plans were recognized on the modified accrual basis, but are not recognized on the accrual basis.

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

The net change in proportionate share of net pension liability as of the measurement date is not recognized as an expenditure under the modified accrual basis, but is recognized on the accrual basis over the expected average remaining service life of members receiving pension benefits.

An internal service fund is used by the District's management to charge the costs of the health and welfare insurance programs to the individual funds. The assets and liabilities of the internal service fund are included with governmental activities.

The difference between projected and actual earnings on pension plan investments are not recognized on the modified accrual basis, but are recognized on the accrual basis as an adjustment to pension expense.

The differences between expected and actual experience in the measurement of the total pension liability are not recognized on the modified accrual basis, but are recognized on the accrual basis over the expected average remaining service life of members receiving pension benefits.

The changes of assumptions is not recognized as an expenditure under the modified accrual basis, but is recognized on the accrual basis over the expected average remaining service life of members receiving pension benefits.
Net pension liability is not due and payable in the current period,

and is not reported as a liability in the funds.

$ 1,267,898,586

(339,753,476)

$	185,776,535

928,145,110

32,669,122

1,216,826

6,136,614

1,196,782

38,067,489

(2,076,518)

(3,184,111)

(377,965,239)

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

18

CLOVIS UNIFIED SCHOOL DISTRICT

RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION, Continued
JUNE 30, 2017

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

Other postemployment benefits, excluding Self Insurance Fund portion
Total Long-Term Obligations

Total Net Position - Governmental Activities

$     499,075,654 5,973,005 2,118,678 1,908,406 567,000

229,361,414

$ (739,004,157)

$	70,978,453

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

19

CLOVIS UNIFIED SCHOOL DISTRICT

GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2017

REVENUES

Local Control Funding Formula Federal sources
Other State sources

General Fund

$       339,166,659 17,883,624
60,947,481

Building Fund

$                          --
-

Other local sources

Total Revenues EXPENDITURES
Current Instruction
Instruction-related activities: Supervision of instruction
Instructional library, media and technology School site administration
Pupil services:

Home-to-school transportation Food services
All other pupil services Administration:
Data processing

All other administration Plant services
Facility acquisition and construction Ancillary services
Other outgo Debt service
Principal

Interest and other

Total Expenditures

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

18,414,399 436,412,163

247,449,414

21,058,272 6,440,753 25,407,789

12,803,574 59,999 32,450,002

3,561,884 16,060,038 43,190,238 634,903 8,972,490 859,913

1,523,372 25,493 420,498,134 15,914,029

1,900,350 1,400,000 (9,128,569) (5,828,219)
10,085,810

81,641,943
$	91,727,753	$

507,688 507,688

-

---

---

--
317,958 38,128,001 -
-

1,818,789 382,602 40,647,350
(40,139,662)

6,592,198 -
(1,838,992) 4,753,206
(35,386,456)

56,179,847 20,793,391

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

20

Bond Interest and Redemption
Fund

Non-Major Governmental
Funds

Total Governmental
Funds

$	-	$ -
329,554 36,082,955 36,412,509

-

---

---

------

54,944,451 14,681,735 69,626,186 (33,213,677)

-32,790,793 -32,790,793
(422,884)

34,332,930
$	33,910,046	$

3,326,070	$ 10,913,360
7,140,879 34,680,290 56,060,599

13,217,486

2,208,681 245,244 1,755,819

-14,010,182 635,231

-1,289,159 5,418,970
12,023,092 --

448,000 8,663 51,260,527 4,800,072

10,629,786 378,000
(8,154,773) 2,853,013 7,653,085
31,692,260 39,345,345	$

342,492,729 28,796,984 68,417,914 89,685,332 529,392,959

260,666,900

23,266,953 6,685,997 27,163,608

12,803,574 14,070,181 33,085,233

3,561,884 17,349,197 48,927,166 50,785,996 8,972,490 859,913

58,734,612 15,098,493 582,032,197
(52,639,238)

19,122,334 34,568,793 (19,122,334) 34,568,793 (18,070,445)
203,846,980 185,776,535

20

CLOVIS UNIFIED SCHOOL DISTRICT

RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2017

Total Net Change in Fund Balances - Governmental Funds	$	(18,070,445) Amounts Reported for Governmental Activities in the Statement
of Activities are Different Because:

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

Capital outlays Depreciation expense
Net Expense Adjustment

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

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

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

In the Statement of Activities, certain operating expenses - compensated absences (vacations) are measured by the amounts earned during the year. In the governmental funds, however, expenditures for these items are measured by the amount of financial resources used (essentially, the amounts actually paid). Vacation earned was more than the amounts paid by $521,009.

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

Postemployment benefits other than pensions (OPEB): In governmental funds, OPEB costs are recognized when employer contributions are made. In the Statement of Activities, OPEB costs are recognized on the accrual basis. This year, the difference between OPEB costs and actual employer contributions was:

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

$54,182,714 (26,924,143)

27,258,571

(39,412)

(1,778,000)

1,216,826

(521,009)

(10,354,369)

9,894,296

21

CLOVIS UNIFIED SCHOOL DISTRICT

RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
TO THE STATEMENT OF ACTIVITIES, Continued FOR THE YEAR ENDED JUNE 30, 2017

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

Amortization of debt premium

Payment of principal on long-term obligations is an expenditure in the governmental funds, but it reduces long-term obligations in the Statement of Net Position and does not affect the Statement of Activities:
General obligation bonds Certificates of participation Capital lease obligations Child development portables

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

An internal service fund is used by the District's management to charge the costs of the insurance programs (health and welfare) to the individual funds. The net revenue of the Internal Service Fund is reported with governmental activities.
Change in Net Position of Governmental Activities

$	(32,790,793)

212,862

54,944,400 1,755,000 1,972,161 63,000

(11,485,640)

(2,472,571) $	19,804,877

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

22

CLOVIS UNIFIED SCHOOL DISTRICT

PROPRIETARY FUNDS STATEMENT OF NET POSITION JUNE 30, 2017

Internal Service
Self Insurance

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

Fund

$        36,696,551 4,722,054 10,593,465 52,012,070

LIABILITIES Current Liabilities
Accounts payable Claim liabilities
Other postemployment benefits obligation Total Current Liabilities

369,276 20,279,535 30,166,477 50,815,288

NET POSITION

Unrestricted

Total Net Position

1,196,782

$	1,196,782

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

23

CLOVIS UNIFIED SCHOOL DISTRICT

PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2017

Internal Service
Self Insurance

OPERATING REVENUES Charges to other funds and
miscellaneous revenues

OPERATING EXPENSES Payroll costs
Professional and contract services Supplies and materials
Total Operating Expenses

Change in Net Position

Total Net Position - Beginning

Total Net Position - Ending

Fund

$	65,361,930

274,699 67,557,832 1,970 67,834,501

(2,472,571) 3,669,353
$	1,196,782

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

24

CLOVIS UNIFIED SCHOOL DISTRICT

PROPRIETARY FUNDS STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2017

Internal Service
Self Insurance

CASH FLOWS FROM OPERATING ACTIVITIES Cash received from refunds
Cash paid for contracted services

Cash payments for other operating expenses Net Cash Provided by
Operating Activities

Cash and Cash Equivalents - Beginning Cash and Cash Equivalents - Ending
RECONCILIATION OF OPERATING LOSS TO

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

Accounts payable, claims liability, and other postemployment benefits obligation

NET CASH PROVIDED BY OPERATING ACTIVITIES

Fund

$	 54,917,720 (47,502,103)
(276,669)

7,138,948 29,557,603
$	36,696,551

$	(2,472,571)

(3,557,894) (6,886,316)

20,055,729

$	7,138,948

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

25

CLOVIS UNIFIED SCHOOL DISTRICT

FIDUCIARY FUNDS STATEMENT OF NET POSITION JUNE 30, 2017

ASSETS

Deposits and investments Receivables
Total Assets

LIABILITIES Accounts payable
Due to student groups

Due to other agencies - Warrant/Pass-Through Fund

Total Liabilities

Agency Funds

$        10,809,011 206,647
$	11,015,658

$	3,207,315 2,095,501 5,712,842
$	11,015,658

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

26

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Financial Reporting Entity

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

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

Component Units

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

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

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

Basis of Presentation - Fund Accounting

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

27

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017

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

Major Governmental Funds

General Fund The General Fund is the chief operating fund for all districts. It is used to account for the ordinary operations of the District. All transactions except those accounted for in another fund are accounted for in this fund.

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

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

Non-Major Governmental Funds

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

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

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

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

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

28

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017

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

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

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

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

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

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

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

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

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

29

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017

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

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

Basis of Accounting - Measurement Focus

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

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

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

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

30

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017

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

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

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

Revenues – Exchange and Non-Exchange Transactions Revenue resulting from exchange transactions, in which each party gives and receives essentially equal value, is recorded on the accrual basis when the exchange takes place. On a modified accrual basis, revenue is recorded in the fiscal year in which the resources are measurable and become available. Available means that the resources will be collected within the current fiscal year or are expected to be collected soon enough thereafter, to be used to pay liabilities of the current fiscal year. Generally, available is defined as collectible within 60 days. However, to achieve comparability of reporting among California districts and so as not to distort normal revenue patterns, with specific respect to reimbursement grants and corrections to State-aid apportionments, the California Department of Education has defined available for districts as collectible within one year. The following revenue sources are considered to be both measurable and available at fiscal year-end: State apportionments, interest, certain grants, and other local sources.

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

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

31

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017

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

Expenses/Expenditures On the accrual basis of accounting, expenses are recognized at the time they are incurred. The measurement focus of governmental fund accounting is on decreases in net financial resources (expenditures) rather than expenses. Expenditures are generally recognized in the accounting period in which the related fund liability is incurred, if measurable, and typically paid within 60 days. Principal and interest on long-term obligations, which have not matured, are recognized when paid in the governmental funds as expenditures. Allocations of costs, such as depreciation and amortization, are not recognized in the governmental funds but are recognized in the entity-wide statements.

Cash and Cash Equivalents

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

Investments

Investments held at June 30, 2017, with original maturities greater than one year are stated at fair value. Fair value is estimated based on quoted market prices at year-end. All investments not required to be reported at fair value are stated at cost or amortized cost. Fair values of investments in county investment pool are determined by the program sponsor.

Prepaid Expenditures

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

Stores Inventories

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

Capital Assets and Depreciation

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

32

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017

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

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

Interfund Balances

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

Compensated Absences

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

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

Accounts Payable and Long-Term Obligations

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

Deferred Outflows/Inflows of Resources

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

33

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017

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

Pensions

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

Fund Balances - Governmental Funds

As of June 30, 2017, fund balances of the governmental funds are classified as follows:

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

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

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

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

Unassigned - all other spendable amounts.

Spending Order Policy

When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available, the District considers restricted funds to have been spent first. When an expenditure is incurred for which committed, assigned, or unassigned fund balances are available, the District considers amounts to have been spent first out of committed funds, then assigned funds, and finally unassigned funds, as needed, unless the governing board has provided otherwise in its commitment or assignment actions.

34

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017

Minimum Fund Balance Policy

In fiscal year 2010-2011, the governing board adopted a minimum fund balance policy for the General Fund in order to protect the district against revenue shortfalls or unpredicted on-time expenditures. The policy requires a Reserve for Economic Uncertainties consisting of unassigned amounts equal to no less than six percent of General Fund expenditures and other financing uses.

Net Position

Net position represents the difference between assets and liabilities. Net position net of investment in capital assets consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowings used for the acquisition, construction, or improvement of those assets. Net position is reported as restricted when there are limitations imposed on their use either through the enabling legislation adopted by the District or through external restrictions imposed by creditors, grantors, or laws or regulations of other governments. The District first applies restricted resources when an expense is incurred for purposes for which both restricted and unrestricted net position is available. The government-wide financial statements report $57,376,190 of restricted net position.

Operating Revenues and Expenses

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

Interfund Activity

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

Estimates

The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates.

35

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017

Budgetary Data

The budgetary process is prescribed by provisions of the California Education Code and requires the governing board to hold a public hearing and adopt an operating budget no later than July 1 of each year. The District governing board satisfied these requirements. The adopted budget is subject to amendment throughout the year to give consideration to unanticipated revenue and expenditures primarily resulting from events unknown at the time of budget adoption with the legal restriction that expenditures cannot exceed appropriations by major object account.

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

Property Tax

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

Change in Accounting Principles

In June 2015, the GASB issued Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans. The objective of this Statement is to improve the usefulness of information about postemployment benefits other than pensions (other postemployment benefits or OPEB) included in the general purpose external financial reports of state and local governmental OPEB plans for making decisions and assessing accountability. This Statement results from a comprehensive review of the effectiveness of existing standards of accounting and financial reporting for all postemployment benefits (pensions and OPEB) with regard to providing decision-useful information, supporting assessments of accountability and inter-period equity, and creating additional transparency.

This Statement replaces Statements No. 43, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, as amended, and No. 57, OPEB Measurements by Agent Employers and Agent Multiple-Employer Plans. It also includes requirements for defined contribution OPEB plans that replace the requirements for those OPEB plans in Statement No. 25, Financial Reporting for Defined Benefit Pension Plans and Note Disclosures for Defined Contribution Plans, as amended, Statement No. 43, and Statement No. 50, Pension Disclosures.

The District has implemented the provisions of this Statement as of June 30, 2017.

In December 2015, the GASB issued Statement No. 78, Pensions Provided Through Certain Multiple-Employer Defined Benefit Pension Plans. The objective of this Statement is to address a practice issue regarding the scope and applicability of Statement No. 68, Accounting and Financial Reporting for Pensions. This issue is associated with pensions provided through certain multiple-employer defined benefit pension plans and to state or local governmental employers whose employees are provided with such pensions.

36

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017

Prior to the issuance of this Statement, the requirements of Statement No. 68 applied to the financial statements of all state and local governmental employers whose employees are provided with pensions through pension plans that are administered through trusts that meet the criteria in paragraph 4 of that Statement.

This Statement amends the scope and applicability of Statement No. 68 to exclude pensions provided to employees of state or local governmental employers through a cost-sharing multiple-employer defined benefit pension plan that (1) is not a state or local governmental pension plan, (2) is used to provide defined benefit pensions both to employees of state or local governmental employers and to employees of employers that are not state or local governmental employers, and (3) has no predominant state or local governmental employer (either individually or collectively with other state or local governmental employers that provide pensions through the pension plan). This Statement establishes requirements for recognition and measurement of pension expense, expenditures, and liabilities; note disclosures; and required supplementary information for pensions that have the characteristics described above.

The District has implemented the provisions of this Statement as of June 30, 2017.

In March 2016, the GASB issued Statement No. 82, Pension Issues - An Amendment of GASB Statements No. 67, No. 68, and No. 73. The objective of this Statement is to address certain issues that have been raised with respect to Statements No. 67, Financial Reporting for Pension Plans, No. 68, Accounting and Financial Reporting for Pensions, and No. 73, Accounting and Financial Reporting for Pensions and Related Assets That Are Not within the Scope of GASB Statement No. 68, and Amendments to Certain Provisions of GASB Statements No. 67 and No. 68. Specifically, this Statement addresses issues regarding (1) the presentation of payroll-related measures in required supplementary information, (2) the selection of assumptions and the treatment of deviations from the guidance in an Actuarial Standard of Practice for financial reporting purposes, and (3) the classification of payments made by employers to satisfy employee (plan member) contribution requirements.

The District has implemented the provisions of this Statement as of June 30, 2017, except for the requirements of this Statement for the selection of assumptions in a circumstance in which an employer's pension liability is measured as of a date other than the employer's most recent fiscal year-end. In that circumstance, the requirements for the selection of assumptions are effective for that employer in the first reporting period in which the measurement date of the pension liability is on or after June 15, 2017.

New Accounting Pronouncements

In June 2015, the GASB issued Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pension. The primary objective of this Statement is to improve accounting and financial reporting by state and local governments for postemployment benefits other than pensions (other postemployment benefits or OPEB). It also improves information provided by state and local governmental employers about financial support for OPEB that is provided by other entities. This Statement results from a comprehensive review of the effectiveness of existing standards of accounting and financial reporting for all postemployment benefits (pensions and OPEB) with regard to providing decision-useful information, supporting assessments of accountability and inter-period equity, and creating additional transparency.

37

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017

This Statement replaces the requirements of Statements No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions, as amended, and No. 57, OPEB Measurements by Agent Employers and Agent Multiple-Employer Plans, for OPEB. Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, establishes new accounting and financial reporting requirements for OPEB plans.

The requirements of this Statement are effective for financial statements for periods beginning after June 15, 2017. Early implementation is encouraged.

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

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

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

In March 2017, the GASB issued Statement No. 85, Omnibus 2017. The objective of this Statement is to address practice issues that have been identified during implementation and application of certain GASB Statements. This Statement addresses a variety of topics including issues related to blending component units, goodwill, fair value measurement and application, and postemployment benefits (pensions and other postemployment benefits [OPEB]). Specifically, this Statement addresses the following topics:

	Blending a component unit in circumstances in which the primary government is a business-type activity that reports in a single column for financial statement presentation;

	Reporting amounts previously reported as goodwill and "negative" goodwill;

	Classifying real estate held by insurance entities;

	Measuring certain money market investments and participating interest-earning investment contracts at amortized cost;

	Timing of the measurement of pension or OPEB liabilities and expenditures recognized in financial statements prepared using the current financial resources measurement focus;

	Recognizing on-behalf payments for pensions or OPEB in employer financial statements;

	Presenting payroll-related measures in required supplementary information for purposes of reporting by OPEB plans and employers that provide OPEB;

	Classifying employer-paid member contributions for OPEB;

	Simplifying certain aspects of the alternative measurement method for OPEB;

38

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017

	Accounting and financial reporting for OPEB provided through certain multiple-employer defined benefit OPEB plans.

The requirements of this Statement are effective for reporting periods beginning after June 15, 2017. Early implementation is encouraged.

In May 2017, the GASB issued Statement No. 86, Certain Debt Extinguishment Issues. The primary objective of this Statement is to improve consistency in accounting and financial reporting for in-substance defeasance of debt by providing guidance for transactions in which cash and other monetary assets acquired with only existing resources—resources other than the proceeds of refunding debt—are placed in an irrevocable trust for the sole purpose of extinguishing debt. This Statement also improves accounting and financial reporting for prepaid insurance on debt that is extinguished and notes to financial statements for debt that is defeased in substance.

The requirements of this Statement are effective for reporting periods beginning after June 15, 2017. Early implementation is encouraged.

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

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

39

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017

NOTE 2 - DEPOSITS AND INVESTMENTS

Summary of Deposits and Investments

Deposits and investments as of June 30, 2017, are classified in the accompanying financial statements as follows:

Governmental activities Fiduciary funds
Total Deposits and Investments

$ 262,249,802 10,809,011
$ 273,058,813

Deposits and investments as of June 30, 2017, consist of the following:

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

$      1,062,045 8,378,665 147,500 1,437,829

Investments with county treasury
Total Deposits and Investments

262,032,774 $ 273,058,813

Policies and Practices

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

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

40

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017

General Authorizations

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

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

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

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

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

Interest Rate Risk

Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The District does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. The District manages its exposure to interest rate risk by investing in the County Pool which purchases a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.

Segmented Time Distribution

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

Investment Type County Pool

Fair Value
$261,301,231

12 Months or Less
$

13 - 36                  37 - 60 Months                 Months
$261,301,231	$

More Than 60 Months
$

41

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017

Custodial Credit Risk - Deposits

This is the risk that in the event of a bank failure, the District's deposits may not be returned to it. The District does not have a policy for custodial credit risk for deposits. However, the California Government Code requires that a financial institution secure deposits made by State or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110 percent of the total amount deposited by the public agency. California law also allows financial institutions to secure public deposits by pledging first trust deed mortgage notes having a value of 150 percent of the secured public deposits and letters of credit issued by the Federal Home Loan Bank of San Francisco having a value of 105 percent of the secured deposits. As of June 30, 2017, $15,119,662 of the District's bank balance was exposed to custodial credit risk because it was uninsured and collateralized with securities held by the pledging financial institution's trust department or agent, but not in the name of the District.

NOTE 3 - FAIR VALUE MEASUREMENTS

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

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

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

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

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

42

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017

NOTE 4 - RECEIVABLES

Receivables at June 30, 2017, consisted of intergovernmental grants, entitlements, interest and other local sources. All receivables are considered collectible in full.

General Fund
Federal Government

Building

Fund

Non-Major Governmental
Funds

Total Governmental
Funds

Internal Service
Fund

Total Governmental
Activities

Warrant/ Pass-Through
Fund

Categorical aid State Government
State grants and

entitlements

$ 8,692,032	$

5,295,471

-	$ 1,943,476

-	1,052,993

$ 10,635,508	$

6,348,464

-	$ 10,635,508	$	-

-	6,348,464	-

Local Sources Total

1,448,224 $15,435,727

101,300 $ 101,300

329,010 $ 3,325,479

1,878,534 $ 18,862,506

4,722,054 $ 4,722,054

6,600,588 23,584,560

206,647 $	206,647

NOTE 5 - CAPITAL ASSETS

Capital asset activity for the fiscal year ended June 30, 2017, was as follows:

Governmental Activities

Capital Assets not being depreciated

Balance

July 1, 2016	Additions

Balance

Deductions	June 30, 2017

Land	$ 77,540,564	$ 13,060,363	$	-	$ 90,600,927

Construction in progress

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

Net

122,808,504

200,349,068

119,054,434 825,101,358 69,368,659

1,013,524,451

70,283,671 209,932,129 32,731,768 312,947,568

$ 900,925,951

50,533,996

63,594,359

5,374,041 105,166,206 3,886,500

114,426,747

4,562,293 18,198,070 4,163,780 26,924,143

$151,096,963

123,838,392

123,838,392

-157,647 -

157,647

-118,235 -118,235

$123,877,804

49,504,108

140,105,035

124,428,475 930,109,917 73,255,159

1,127,793,551

74,845,964 228,011,964 36,895,548 339,753,476

$ 928,145,110

43

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017

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

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

$ 15,885,244 1,615,449 3,769,380 2,961,656 807,724 807,724 1,076,966
$ 26,924,143

NOTE 6 - INTERFUND TRANSACTIONS

Interfund Receivables/Payables (Due To/Due From)

Interfund receivable and payable balances arise from interfund transactions and are recorded by all funds affected in the period in which transactions are executed. Interfund receivable and payable balances at June 30, 2017, between major and non-major governmental funds, and internal service funds are as follows:

Interfund Receivables
Major Governmental Funds

Interfund Payables

General Building

$       215,106 461,135

$ 11,388,566 5,557,213

Total Major Governmental Funds Non-Major Governmental Funds
Charter School Adult Education Child Development Cafeteria
Capital Facilities County School Facilities
Special Reserve Capital Outlay
Central Valley School Districts Financing Corporation Total Non-Major Governmental Funds Subtotal All Governmental Funds
Self Insurance Fund
Total Governmental Activities

676,241

524,909 ---
224,971 33,226 5,803,842 -6,586,948 7,263,189
10,593,465 $ 17,856,654

16,945,779

5,672 153,386 120,935 187,208 172 16,613 33,226 393,663 910,875
17,856,654 -
$ 17,856,654

44

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017

Operating Transfers

Interfund transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them, (2) move receipts restricted to debt service from the funds collecting the receipts to the debt service fund as debt service payments become due, and (3) use unrestricted revenues collected in the General Fund to finance various programs accounted for in other funds in accordance with budgetary authorizations. Interfund transfers for the year ended June 30, 2017, consisted of the following:

The General Fund transferred to the Deferred Maintenance Non-Major Governmental Fund for future repairs and maintenance projects.
The General Fund transferred to the Building Fund for the COPs debt service payment. The General Fund transferred to the Building Fund for 2012 debt service payments.
The General Fund transferred to the Special Reserve Capital Outlay Non-Major Governmental Fund for the district-wide furniture refresh.
The General Fund transferred to the Non-Major Adult Education Fund for the District's Adult Education program.
The General Fund transferred to the Special Reserve Capital Outlay Non-Major Governmental Fund for the annual RCA transfer.
The General Fund transferred to the Non-Major Special Reserve Capital Outlay Fund for 2008 maturing debt service payrments.
The General Fund transferred to the Special Reserve Capital Outlay Non-Major Governmental Fund for Clovis East High School farm operations funding.
The Cafeteria Non-Major Governmental Fund transferred to the Special Reserve Capital Outlay Non-Major Governmental Fund for partial funding of the Reyburn bread kitchen.
The Cafeteria Non-Major Governmental Fund transferred to the Building Fund for routine repairs and maintenance.
The Deferred Maintenance Non-Major Governmental Fund transferred to the Building Fund for various modernization projects.
The Building Fund transferred to the Central Valley School Districts Financing Corporation Non-Major Governmental Fund for the COP debt service payment.
The Building Fund transferrred to the County School Facilities Non-Major Governmental Fund for Clovis West Career and Technology Education funding.
The Building Fund (sub-class 60018 residual RDA monies) transferrred to the General Fund for expenditures related to repairing/replacing fire damage at an elementary site.
The Capital Facilities Non-Major Governmental Fund transferred to the General Fund for the three percent administrative fee.
The Capital Facilities Non-Major Governmental Fund transferred to the Building Fund for the 2012 debt service payment.
The Special Reserve Capital Outlay Non-Major Governmental Fund transferred to the Building Fund for COPs debt service payment.
The Special Reserve Capital Outlay Non-Major Governmental Fund transferred to the Building Fund for 2012 debt service payment.
The Special Reserve Capital Outlay Non-Major Governmental Fund transferred to the General Fund solar rebates.
The Special Reserve Capital Outlay Non-Major Governmental Fund transferred to the Deferred Maintenance Non-Major Governmental Fund for future repairs and maintenance projects.
The Child Development Non-Major Governmental Fund transferred to the Special Reserve Capital Outlay Non-Major Governmental Fund for Child Development portables at Bud Rank Elementary.
Total

$ 2,800,000 1,730,332 1,293,298

492,099

846,880

267,355

1,700,000

(1,395)

959,400

279

1,420,700

393,663

682,068

763,261

337,089

500,000

393,663

1,253,926

800,000

1,300,000

1,189,716 $ 19,122,334

45

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017

NOTE 7 - PREPAID EXPENDITURES

Prepaid expenditures at June 30, 2017, consist of the following:

General Fund

Non-Major Governmental Funds

Total Governmental Activities

Electronic Student Curriculum Database Subscription Travel
Total

$	514,202

$	514,202

$        475,000 14,980
$	489,980

$        989,202 14,980
$	1,004,182

NOTE 8 - ACCOUNTS PAYABLE

Accounts payable at June 30, 2017, consisted of the following:

General

Fund

Building

Fund

Non-Major Governmental
Funds

Governmental Funds
Total

Internal Service
Fund

Total Governmental
Activities

Warrant/ Pass-Through
Fund

Vendor payables	$ 8,316,831	$ 5,966,217	$ 2,014,268	$ 16,297,316	$	369,276	$ 16,666,592	$	-Local control

funding formula Deferred payroll Accrued payroll
Total

4,231,728 25,317,357 488,255
$ 38,354,171

---
$ 5,966,217

---
$ 2,014,268

4,231,728 25,317,357 488,255
$ 46,334,656

---
$	369,276

4,231,728 25,317,357 488,255
46,703,932

--
3,207,315

3,207,315

NOTE 9 - UNEARNED REVENUE

Unearned revenue at June 30, 2017, consists of the following:

General

Federal financial assistance State categorical aid
Local sources Total

Fund
$         18,964 4,290,672 10,193
$ 4,319,829

46

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017

NOTE 10 - LONG-TERM OBLIGATIONS

Summary

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

Balance

July 1, 2016	Additions

Balance

Deductions	June 30, 2017

Due in

One Year

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

benefits-not recognized in Self Insurance Fund
Other postemployment benefits-recognized in Self Insurance Fund
Total

$ 505,121,561 4,834,922 7,728,005 1,597,669 2,480,567 252,000

239,255,710

20,272,181 $ 781,542,615

$ 41,995,640 2,280,793
-521,009
1,400,000 378,000

-

9,894,296 $ 56,469,738

$ 54,944,400 212,862 1,755,000
-1,972,161 63,000

9,894,296

-$ 68,841,719

$ 492,172,801 6,902,853 5,973,005 2,118,678 1,908,406 567,000

229,361,414

30,166,477 $ 769,170,634

$23,965,000 -
1,420,000 -1,440,875 126,000

-

-26,951,875

The General Obligation Bonds are paid by the Bond Interest and Redemption Fund with local tax revenue. The Certificates of Participation are paid by the Building Fund and Central Valley School Districts Financing Corporation Fund. Payments on the capital leases and child development portables are made from General Fund, Building Fund and Child Development Fund. Payments on compensated absences and other postemployment benefits are made from the fund which the related employee worked.

47

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017

Bonded Debt

The outstanding general obligation bonded debt is as follows:

Issue	Maturity

Date	Date

Interest

Rate

Original

Issue

Bonds Outstanding
July 1, 2016

Interest Accreted/
Issued

Bonds Outstanding
Redeemed	June 30, 2017

10/1/01	2019

10/1/02	2028

9.0%

3.6-5.23%

$ 49,996,471

29,000,256

$ 17,879,459

34,552,399

$	619,620

1,587,184

$ 5,915,000

2,810,000

$ 12,584,079

33,329,583

12/1/04 3/1/06 5/31/12 8/15/12 7/25/13 8/19/14 8/6/15
12/1/16

2030	3.8-6.15% 2031          4.0-5.0% 2022          2.0-5.0% 2038          1.0-5.5% 2039	2.0-6.12% 2040      3.19-4.52% 2041	3.37-5.0%
2022	2.0-5.0%

119,998,286 48,001,060 17,935,000 79,996,801 49,996,579 64,995,505 103,007,034
30,510,000

112,012,278 32,379,866 17,570,000 77,925,498 48,888,844 60,323,371 103,589,846
-

5,484,879 1,099,899 -
931,968 617,358 500,235 644,497
30,510,000

9,845,000 9,705,000 -20,534,400 -
755,000 5,380,000
-

107,652,157 23,774,765 17,570,000 58,323,066 49,506,202 60,068,606 98,854,343
30,510,000

Total	$ 593,436,992	505,121,561	$ 41,995,640	$ 54,944,400	$ 492,172,801

Debt Service Requirements to Maturity

The annual requirement to amortize the Election of 2001, Series A general obligation bonds payable, outstanding at June 30, 2017, is as follows:

Accreted Fiscal Year	Obligation

Unaccreted Interest

Final Maturity

2018	$	6,270,000	$ 2019                                                                                   6,314,079
Total	$ 12,584,079	$

-330,921 330,921

$      6,270,000 6,645,000
$ 12,915,000

The annual requirement to amortize the Election of 2001, Series B general obligation bonds payable, outstanding at June 30, 2017, is as follows:

Accreted Fiscal Year	Obligation

Unaccreted Interest

Final Maturity

2018 2019 2020 2021 2022
2023-2027 2028 Total

$      2,880,000 2,817,297 2,744,885 2,672,200 2,595,880 12,036,977 7,582,344
$ 33,329,583

$                     -137,703 280,115 427,800 579,120 5,193,023 5,122,656
$ 11,740,417

$      2,880,000 2,955,000 3,025,000 3,100,000 3,175,000 17,230,000 12,705,000
$ 45,070,000

48

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017

The annual requirement to amortize the Election of 2004, Series A general obligation bonds payable, outstanding at June 30, 2017, is as follows:

Accreted Fiscal Year	Obligation

Unaccreted Interest

Final Maturity

2018 2021 2022
2023-2027 2028-2030

$ 10,435,000 10,717,146
-54,500,076 31,999,935

$                     -1,712,854
-24,219,924 27,505,065

$ 10,435,000 12,430,000
-78,720,000 59,505,000

Total	$ 107,652,157	$ 53,437,843	$ 161,090,000

The annual requirement to amortize the Election of 2004, Series B general obligation bonds payable, outstanding at June 30, 2017, is as follows:

Capital Appreciation Bond portion:

Fiscal Year

Accreted Obligation

Unaccreted Interest

Final Maturity

2027	$	3,210,774 2028                                                                                   3,239,572 2029                                                                                   3,265,129 2030                                                                                   3,291,290 2031                                                                                 10,768,000 Total                                                                           $ 23,774,765

$	1,679,226 1,940,428 2,229,871 2,523,710 9,232,000
$ 17,605,235

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

The annual requirement to amortize the 2012 Refunding general obligation bonds payable, outstanding at June 30, 2017, is as follows:

Interest to

Fiscal Year 2018

Principal
$	-

Maturity
$	1,049,550

Total
$	1,049,550

2019	8,895,000 2020	4,120,000 2021                                                                                                 -2022	4,555,000 Total                                                                           $ 17,570,000

563,650 290,350 202,950 101,475
$	2,207,975

9,458,650 4,410,350 202,950 4,656,475
$ 19,777,975

49

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017

The annual requirement to amortize the 2012 Series A general obligation bonds payable, outstanding at June 30, 2017, is as follows:

Current Interest Bond portion:

Interest to

Fiscal Year 2018 2019 2020 2021 2022
2023-2027 2028-2032 2033-2037 2038 Total

Principal
$	 535,000 1,625,000 2,615,000
-3,165,000 6,515,000
10,945,000 9,040,000 9,805,000
$ 44,245,000

Maturity
$      1,734,650 1,691,450 1,606,650 1,554,350 1,491,050 6,391,050 5,434,825 3,588,200 196,100
$ 23,688,325

Total
$      2,269,650 3,316,450 4,221,650 1,554,350 4,656,050 12,906,050 16,379,825 12,628,200 10,001,100
$ 67,933,325

Capital Appreciation Bond portion:

Fiscal Year

Accreted Obligation

Unaccreted Interest

Final Maturity

2032-2036	$ 14,078,066	$ 20,136,934	$ 34,215,000

Total 2012, Series A obligation:	$ 58,323,066

The annual requirement to amortize the 2012 Series B general obligation bonds payable, outstanding at June 30, 2017, is as follows:

Current Interest Bond portion:

Interest to

Fiscal Year 2018 2019 2020 2021 2022
2023-2027

Principal
$	------

Maturity
$	1,939,088 1,939,088 1,939,088 1,939,088 1,939,088 9,695,435

Total
$	1,939,088 1,939,088 1,939,088 1,939,088 1,939,088 9,695,435

2028-2032 2033-2037 2038-2039 Total

2,935,000 19,130,000 16,105,000
$ 38,170,000

9,541,348 6,243,450 515,500
$ 35,691,173

12,476,348 25,373,450 16,620,500
$ 73,861,173

50

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017

Capital Appreciation Bond portion:

Fiscal Year

Accreted Obligation

Unaccreted Interest

Final Maturity

2021 2022-2026 2027-2031
Total

$	1,561,168 4,856,580 4,918,454
$ 11,336,202

$	 293,832 1,918,420 4,581,546
$	6,793,798

$	1,855,000 6,775,000 9,500,000
$ 18,130,000

Total 2012, Series B obligation:	$ 49,506,202

The annual requirement to amortize the 2012 Series C general obligation bonds payable, outstanding at June 30, 2017, is as follows:

Current Interest Bond portion:

Interest to

Fiscal Year 2018 2019 2020 2021 2022
2023-2027 2028-2032 2033-2037 2038-2040 Total

Principal
$	1,200,000 1,180,000 1,115,000
-1,125,000 1,305,000 -
15,625,000 25,500,000
$ 47,050,000

Maturity
$	1,903,875 1,843,875 1,784,875 1,729,125 1,729,125 8,103,375 8,038,125 7,234,650 2,374,200
$ 34,741,225

Total
$      3,103,875 3,023,875 2,899,875 1,729,125 2,854,125 9,408,375 8,038,125 22,859,650 27,874,200
$ 81,791,225

Capital Appreciation Bond portion:

Fiscal Year

Accreted Obligation

Unaccreted Interest

Final Maturity

2024-2027 2028-2032 2033 Total

$	5,613,232 5,876,288 1,529,086
$ 13,018,606

$	1,696,768 4,148,712 1,460,914
$	7,306,394

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

Total 2012, Series C obligation:	$ 60,068,606

51

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017

The annual requirement to amortize the 2012 Series D general obligation bonds payable, outstanding at June 30, 2017, is as follows:

Current Interest Bond portion:

Interest to

Fiscal Year 2018 2019 2020 2021 2022
2023-2027 2028-2032 2033-2037 2038-2041

Principal
$      1,520,000 1,190,000 1,045,000 1,575,000 1,030,000 3,680,000 5,680,000 1,420,000 67,105,000

Maturity
$      3,582,300 3,521,500 3,462,000 3,409,750 3,331,000 15,852,000 14,780,000 14,057,500 8,572,700

Total
$      5,102,300 4,711,500 4,507,000 4,984,750 4,361,000 19,532,000 20,460,000 15,477,500 75,677,700

Total	$ 84,245,000	$ 70,568,750	$ 154,813,750

Capital Appreciation Bond portion:

Fiscal Year

Accreted Obligation

Unaccreted Interest

Final Maturity

2031 2032-2036
2037 Total

$      1,990,100 11,042,451 1,576,792
$ 14,609,343

$      1,509,900 11,832,549 2,228,208
$ 15,570,657

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

Total 2012, Series D obligation:	$ 98,854,343

The annual requirement to amortize the 2016 Refunding general obligation bonds payable, outstanding at June 30, 2017, is as follows:

Current Interest Bond portion:

Interest to

Fiscal Year 2018 2019 2020 2021 2022 Total

Principal
$      1,660,000 1,740,000 14,505,000 10,055,000 2,550,000
$ 30,510,000

Maturity
$      1,444,831 1,236,550 920,350 378,875 63,750
$	4,044,356

Total
$      3,104,831 2,976,550 15,425,350 10,433,875 2,613,750
$ 34,554,356

52

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017

Savings Calculations: Prior Debt Service Refunding Debt Service Savings
Present Value of Savings at 1.86%

$ 43,402,750 34,554,356
$	8,848,394

$	4,324,040

Certificates of Participation

2010 Certificates of Participation

In June 2010, the Central Valley Support Services JPA issued 2010 Certificates of Participation on behalf of the District in the amount of $9,365,000 with interest rates ranging from 2.00 to 4.00 percent. As of June 30, 2017, 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

2018	$ 1,155,000 2019                                                                                          1,205,000 2020                                                                                          1,250,000 2021                                                                                             290,057 Total                                                                                     $ 3,900,057

$      155,300 108,100 59,000 25,700
$	348,100

$ 1,310,300 1,313,100 1,309,000 315,757
$ 4,248,157

2011 Certificates of Participation

In January 2011, the Central Valley Support Services JPA issued 2011 Certificates of Participation on behalf of the District in the amount of $4,450,000 with interest rates ranging from 2.00 to 4.50 percent. As of
June 30, 2017, the District drew down funds in the amount of $8,390,057.

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

Year Ending

June 30,	Principal	Interest	Total

2018 2019 2020 2021 2022
2023-2024 Total

$	265,000 275,000 285,000 295,000 310,000 642,948
$ 2,072,948

$	155,500 144,356 132,100 118,313 103,188 155,831
$	809,288

$	420,500 419,356 417,100 413,313 413,188 798,779
$ 2,882,236

53

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017

Compensated Absences

The long-term portion of compensated absences for the District at June 30, 2017, amounted to $2,118,678.

Capital Leases

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

Balance, July 1, 2016 Additions
Payments
Balance, June 30, 2017

$ 2,480,567 1,400,000 1,972,161
$ 1,908,406

The capital leases have minimum lease payments as follows:

Year Ending June 30,

Lease Payment

2018 2019 Total
Less: Amount Representing Interest Present Value of Minimum Lease Payments

$ 1,468,072 474,422 1,942,494 34,088
$ 1,908,406

Child Development Portables

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

The loan matures in 2020 and the payments are as follows:

Year Ending

June 30,	Payment 2018                                                                                                                                            $       126,000 2019                                                                                                                                                     126,000 2020                                                                                                                                                     126,000 2022                                                                                                                                                       63,000 Total                                                                                                                                            $       567,000

54

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017

Other Postemployment Benefits (OPEB) Obligation

The District's annual required contribution for the year ended June 30, 2017, was $269,594,399, and claims paid by the District during the year were $10,174,593. Interest on the net OPEB obligation and adjustments to the annual required contribution were $8,838,206 and $(288,607,198), respectively, which resulted in no change to the net OPEB obligation. As of June 30, 2017, the net OPEB obligation was $259,527,891. See Note 13 for additional information regarding the OPEB obligation and the postemployment benefits plan.

55

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017

NOTE 11 - FUND BALANCES

Fund balances are composed of the following elements:

General Fund
Nonspendable

Building Fund

Bond Interest and Redemption Fund

Non-Major Governmental
Funds	Total

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

$	 144,000	$	-	$ 1,281,097                          -
514,202                          -1,939,299                          -

2,093,814                          --                          -

-	$	3,500 -              323,449 -              489,980 -              816,929

-                91,900 -           7,315,416

$	 147,500 1,604,546 1,004,182 2,756,228

2,185,714 7,315,416

Capital projects Debt service
Child development programs Total Restricted
Committed

Adult education capital improvements
Deferred maintenance projects Adult education future
program growth

Total Committed Assigned
Fee-based program carryovers Other program carryovers Site carryovers
Citi-Kids/CHAPS (future capital)
Student computer refresh LCAP supplemental
carryover

Mandate audit reserve Charter school future
program growth

Child development future program growth
Capital projects Total Assigned
Unassigned

Total

---
2,093,814

--

--

1,067,356 1,007,197 828,151

1,061,353 5,419,770

1,523,206 915,215

-

--
11,822,248 75,872,392 $ 91,727,753

20,793,391 --
20,793,391

--

--

---

--

--

-

----
$20,793,391

-33,910,046 -33,910,046

--

--

---

--

--

-

----
$33,910,046

12,610,339 1,054,092 10,190 21,081,937

3,500,000 1,320,899

293,445 5,114,344

---

--

--

230,028

1,525,841 10,576,266 12,332,135 -
$ 39,345,345

33,403,730 34,964,138 10,190 77,879,188

3,500,000 1,320,899

293,445 5,114,344

1,067,356 1,007,197 828,151

1,061,353 5,419,770

1,523,206 915,215

230,028

1,525,841 10,576,266 24,154,383 75,872,392 $185,776,535

56

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017

NOTE 12 - EXPENDITURES (BUDGET VERSUS ACTUAL)

At June 30, 2017, the following District major fund exceeded the budgeted amounts as follows:

Fund General
Total expenditures

Budget

$ 417,956,027

Expenditures Actual

$ 420,498,134

Excess

$ 2,542,107

NOTE 13 - POSTEMPLOYMENT HEALTH CARE PLAN AND OTHER POSTEMPLOYMENT BENEFITS (OPEB) OBLIGATION

Plan Description

The Postemployment Benefits Plan (the "Plan") is a single-employer defined benefit healthcare plan administered by the Clovis Unified School District. The Plan provides medical and dental insurance benefits to eligible retirees and their spouses. Membership of the Plan consists of 1,090 retirees and beneficiaries currently receiving benefits and 3,242 active plan members.

Contribution Information

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 provide for five years, but not beyond age 65. 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. For fiscal year 2016-2017, the District paid claims on behalf of retirees totaling $10,174,593.

57

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017

Annual OPEB Cost and Net OPEB Obligation

The District's annual OPEB cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement No. 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 unfunded actuarial accrued liabilities (UAAL) (or funding excess) over a period not to exceed thirty years. The following table shows the components of the District's annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the District's net OPEB obligation to the Plan:

Annual required contribution Interest on net OPEB obligation
Adjustment to annual required contribution Annual OPEB cost (expense)
Claims paid
Increase in net OPEB obligation
Net OPEB obligation, beginning of year Net OPEB obligation, end of year

$ 269,594,399 8,838,206
(288,607,198) (10,174,593)
10,174,593 -259,527,891
$ 259,527,891

OPEB obligation reflected in Self Insurance Fund	$	30,166,477

Remaining OPEB obligation reflected as full-accrual adjustment Total OPEB obligation, end of year

229,361,414 $ 259,527,891

Trend Information

Trend information for annual OPEB cost, the percentage of annual OPEB cost contributed to the Plan, and the net OPEB obligation is as follows:

Year Ended June 30,

Annual OPEB Cost

Actual Contribution

Percentage Contributed

OPEB Obligation

2017	$	(10,174,593) 2016                                           49,021,065 2015                                             9,447,211

$	(10,174,593) 10,448,329
9,447,211

100.00% 21.31% 100.00%

$ 259,527,891 259,527,891 220,955,155

58

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017

Funded Status and Funding Progress

A schedule of funding progress as of the most recent actuarial valuation is as follow:

Actuarial Valuation Date

Actuarial Value of Assets (a)

Actuarial Accrued Liability (AAL) -Pojected
Unit Credit (b)

Unfunded AAL (UAAL) (b - a)

Funded
Ratio	Covered (a / b)            Payroll (c)

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

July 1, 2016	$	-	$259,527,891	$259,527,891	0.00%	$236,480,303	109.75%

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 the 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 effects of short-term volatility in actuarial accrued liabilities, consistent with the long-term perspective of the calculations.

In the July 1, 2016, actuarial valuation, the projected unit credit method was used. The actuarial assumptions included a four percent investment rate of return (net of administrative expenses), based on the plan being funded in an irrevocable employee benefit trust invested in a combined equity and fixed income portfolio. Healthcare cost trend rates ranged from an initial eight percent to an ultimate rate of five percent. The cost trend rate used for the Dental and Vision programs was four percent and three percent, respectively. The UAAL has been recognized in full by the District.

NOTE 14 - RISK MANAGEMENT

Workers' Compensation and Employee Medical Benefits

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 (workers' compensations) and Self Insurance Fund (health and welfare). The General Fund provides coverage for up to a maximum of $275,000 for each workers' compensation claim and the Self Insurance Fund provides coverage for up to $350,000 for each health insurance claim. The District purchases commercial insurance for claims in excess of coverage provided by the General Fund and Self Insurance Fund and for all other risks of loss.

All funds of the District, which reflect salary costs, participate in the program and make payments to the General Fund based on actuarial estimates of the amounts needed to pay prior and current year claims. The claims liability of $10,800,738 reported in the General Fund at June 30, 2017, is based on the requirements of
GASB Statement No. 10, which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated.

59

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017

Property and Liability

The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees and natural disasters. During fiscal year ending June 30, 2017, the District contracted with the Schools Excess Liability Fund (SELF) and the Alliance of Schools for Cooperative Insurance Programs (ASCIP) for property and liability insurance coverage. Settled claims have not exceeded this commercial coverage in any of the past three years. There has not been a significant reduction in coverage from the prior year.

Claims Liabilities

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

Unpaid Claims Liabilities

The District establishes a liability for both reported and unreported events, which includes estimates of both future payments of losses and related claim adjustment expenses. The following represent the changes in approximate aggregate liabilities for the District from July 1, 2015 to June 30, 2017:

Liability Balance, July 1, 2015 Claims and changes in estimates Claims payments
Liability Balance, June 30, 2016 Claims and changes in estimates Claims payments
Liability Balance, June 30, 2017

Workers' Compensation/ Health and Welfare
$ 17,954,794 62,424,738 60,617,044 19,762,488 69,548,331 69,031,284
$ 20,279,535

Health and welfare claims liability and reserve	$	9,478,797

Workers' compensation claims liability and reserve Total Liability Balance, June 30, 2017

10,800,738 $ 20,279,535

NOTE 15 - EMPLOYEE RETIREMENT SYSTEMS

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

60

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017

For the fiscal year ended June 30, 2017, the District reported net pension liabilities, deferred outflows of resources, deferred inflows of resources, and pension expense for each of the above plans as follows:

Collective Net Pension Plan	Pension Liability

Collective Deferred Outflows of Resources

Collective Deferred Inflows of Resources

Collective Pension Expense

CalSTRS CalPERS
Total

$	271,983,817	$ 105,981,422
$	377,965,239	$

57,198,987	$ 34,488,310 91,687,297	$

15,759,760	$ 4,314,941
20,074,701	$

27,792,396 15,231,095 43,023,491

The details of each plan are as follows:

California State Teachers' Retirement System (CalSTRS)

Plan Description

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

A full description of the pension plan regarding benefit provisions, assumptions (for funding, but not accounting purposes), and membership information is listed in the June 30, 2015, annual actuarial valuation report, Defined Benefit Program Actuarial Valuation. This report and CalSTRS audited financial information are publically available reports that can be found on the CalSTRS website under Publications at: http://www.calstrs.com/member-publications.

Benefits Provided

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

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

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

61

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017

The STRP provisions and benefits in effect at June 30, 2017, are summarized as follows:

STRP Defined Benefit Program

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

On or before December 31, 2012 2% at 60
5 years of service Monthly for life 60
2.0% - 2.4% 10.25% 12.58% 8.828%

On or after January 1, 2013 2% at 62
5 years of service Monthly for life 62
2.0% - 2.4% 9.205% 12.58% 8.828%

Contributions

Required member, District and State of California contributions rates are set by the California Legislature and Governor and detailed in Teachers' Retirement Law. The contributions rates are expressed as a level percentage of payroll using the entry age normal actuarial method. In accordance with AB 1469, employer contributions into the CalSTRS will be increasing to a total of 19.1 percent of applicable member earnings phased over a seven-year period. The contribution rates for each plan for the year ended June 30, 2017, are presented above and the District's total contributions were $22,942,735.

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

At June 30, 2017, the District reported a liability for its proportionate share of the net pension liability that reflected a reduction for State pension support provided to the District. The amount recognized by the District as its proportionate share of the net pension liability, the related state support and the total portion of the net pension liability that was associated with the District were as follows:

Total net pension liability, including State share:

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

$ 271,983,817 154,835,535
$ 426,819,352

The net pension liability was measured as of June 30, 2016. The District's proportion of the net pension liability was based on a projection of the District's long-term share of contributions to the pension plan relative to the projected contributions of all participating school districts and the State, actuarially determined. The District's proportionate share for the measurement period June 30, 2016 and June 30, 2015, respectively was 0.3363 percent and 0.3507 percent, resulting in a net decrease in the proportionate share of 0.0144 percent.

62

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017

For the year ended June 30, 2017, the District recognized pension expense of $27,792,396. In addition, the District recognized pension expense and revenue of $14,966,484 for support provided by the State. At
June 30, 2017, the District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Combined Deferred Outflows
of Resources

Combined Deferred Inflows
of Resources

Pension contributions subsequent to measurement date Net change in proportionate share of net pension liability Difference between projected and actual earnings
on pension plan investments

Differences between expected and actual experience

in the measurement of the total pension liability Total

$	22,942,735	$ 12,633,672

21,622,580

-
$	57,198,987	$

-9,125,025

-

6,634,735 15,759,760

The deferred outflows of resources related to pensions resulting from District contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the subsequent fiscal year. The deferred outflows of resources related to the difference between projected and actual earnings on pension plan investments will be amortized over a closed five-year period and will be recognized in pension expense as follows:

Year Ended June 30,

Combined Deferred Outflows of Resources

2018	$	471,733 2019                                                                                                                                                  471,733 2020                                                                                                                                             12,569,281 2021                                                                                                                                               8,109,833 Total	$                  21,622,580

63

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017

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

Year Ended June 30,

Combined Deferred Outlfows/
(Inflows) of Resources

2018 2019 2020 2021 2022 Thereafter Total

$	(204,977) (204,977) (204,977) (204,977) (204,982)
(2,101,198) $	(3,126,088)

Actuarial Methods and Assumptions

Total pension liability for STRP was determined by applying update procedures to a financial reporting actuarial valuation as of June 30, 2015, and rolling forward the total pension liability to June 30, 2016. The financial reporting actuarial valuation as of June 30, 2015, used the following methods and assumptions, applied to all prior periods included in the measurement:

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

June 30, 2015 June 30, 2016
July 1, 2006 through June 30, 2010 Entry age normal
7.60% 7.60% 3.00%
3.75%

CalSTRS uses custom mortality tables to best fit the patterns of mortality among its members. These custom tables are based on RP2000 series tables adjusted to fit CalSTRS experience.

64

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017

The long-term expected rate of return on pension plan investments was determined using a building-block method in which best estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. The best estimate ranges were developed using capital market assumptions from CalSTRS general investment consultant. Based on the model for CalSTRS consulting actuary's investment practice, a best estimate range was determined by assuming the portfolio is re-balanced annually and that the annual returns are lognormally distributed and independent from year to year to develop expected percentiles for the long-term distribution of annualized returns. The assumed asset allocation is based on Teachers' Retirement Board of the California State Teachers' Retirement System (board) policy for target asset allocation in effect on February 2, 2012, the date the current experience study was approved by the board. Best estimates of ten-year geometric real rates of return and the assumed asset allocation for each major asset class used as input to develop the actuarial investment rate of return are summarized in the following table:

Asset Class Global equity
Fixed income Real estate Private equity

Assumed Asset Allocation 47% 12% 13% 13%

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

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

Discount Rate

The discount rate used to measure the total pension liability was 7.60 percent. The projection of cash flows used to determine the discount rate assumed the contributions from plan members and employers will be made at statutory contribution rates. Projected inflows from investment earnings were calculated using the long-term assumed investment rate of return (7.60 percent) and assuming that contributions, benefit payments and administrative expense occurred midyear. Based on these assumptions, the STRP's fiduciary net position was projected to be available to make all projected future benefit payments to current plan members. Therefore, the long-term assumed investment rate of return was applied to all periods of projected benefit payments to determine total pension liability.

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

Net Pension

Discount Rate 1% decrease (6.60%)
Current discount rate (7.60%) 1% increase (8.60%)

Liability
$	391,446,053 $	271,983,817 $	172,765,428

65

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017

California Public Employees Retirement System (CalPERS)

Plan Description

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

A full description of the pension plan regarding benefit provisions, assumptions (for funding, but not accounting purposes), and membership information is listed in the June 30, 2015 annual actuarial valuation report, Schools Pool Actuarial Valuation. This report and CalPERS audited financial information are publically available reports that can be found on the CalPERS website under Forms and Publications at: https://www.calpers.ca.gov/page/forms-publications.

Benefits Provided

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

The CalPERS provisions and benefits in effect at June 30, 2017, are summarized as follows:

School Employer Pool (CalPERS)

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

On or before December 31, 2012 2% at 55
5 years of service Monthly for life 55
1.1% - 2.5% 7.00% 13.888%

On or after January 1, 2013
2% at 62
5 years of service Monthly for life 62
1.0% - 2.5% 6.00% 13.888%

66

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017

Contributions

Section 20814(c) of the California Public Employees' Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Total plan contributions are calculated through the CalPERS annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The District is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. The contributions rates are expressed as percentage of annual payroll. The contribution rates for each plan for the year ended June 30, 2017, are presented above and the total District contributions were $9,726,387.

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

As of June 30, 2017, the District reported net pension liabilities for its proportionate share of the CalPERS net pension liability totaling $105,981,422. The net pension liability was measured as of June 30, 2016. The District's proportion of the net pension liability was based on a projection of the District's long-term share of contributions to the pension plan relative to the projected contributions of all participating school districts, actuarially determined. The District's proportionate share for the measurement period June 30, 2016 and
June 30, 2015, respectively was 0.5366 percent and 0.5465 percent, resulting in a net decrease in the proportionate share of 0.0099 percent.

For the year ended June 30, 2017, the District recognized pension expense of $15,231,095. At June 30, 2017, the District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Combined Deferred Outflows
of Resources

Combined Deferred Inflows
of Resources

Pension contributions subsequent to measurement date Net change in proportionate share of net pension liability Difference between projected and actual earnings
on pension plan investments

Differences between expected and actual experience

in the measurement of the total pension liability

$	9,726,387	$ 3,758,797

16,444,909

4,558,217

-1,130,830

-

-

Changes of assumptions
Total

-
$	34,488,310	$

3,184,111 4,314,941

67

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017

The deferred outflows of resources related to pensions resulting from District contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the subsequent fiscal year. The deferred outflows of resources related to the difference between projected and actual earnings on pension plan investments will be amortized over a closed five-year period and will be recognized in pension expense as follows:

Year Ended June 30,

Deferred Outflows of Resources

2018	$	2,306,617 2019                                                                                                                                                 2,306,617 2020                                                                                                                                                 7,539,699 2021                                                                                                                                                 4,291,976 Total	$          16,444,909

The deferred outflows/(inflows) of resources related to the net change in proportionate share of net pension liability, changes of assumptions, and differences between expected and actual experience in the measurement of the total pension liability will be amortized over the Expected Average Remaining Service Life (EARSL) of all members that are provided benefits (active, inactive, and retirees) as of the beginning of the measurement period. The EARSL for the measurement period is 3.9 years and will be recognized in pension expense as follows:

Year Ended June 30,

Deferred Outflows/(Inflows) of Resources

2018	$	2,021,842 2019                                                                                                                                                 1,835,715 2020                                                                                                                                                    144,516 Total	$            4,002,073

Actuarial Methods and Assumptions

Total pension liability for the SEP was determined by applying update procedures to a financial reporting actuarial valuation as of June 30, 2015, and rolling forward the total pension liability to June 30, 2016. The financial reporting actuarial valuation as of June 30, 2015, used the following methods and assumptions, applied to all prior periods included in the measurement:

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

June 30, 2015 June 30, 2016
July 1, 1997 through June 30, 2011 Entry age normal
7.65% 7.65% 2.75%
Varies by entry age and service

68

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017

Mortality assumptions are based on mortality rates resulting from the most recent CalPERS experience study adopted by the CalPERS Board. For purposes of the post-retirement mortality rates, those revised rates include five years of projected ongoing mortality improvement using Scale AA published by the Society of Actuaries.

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds' asset classes, expected compound returns were calculated over the short-term (first ten years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Asset Class Global equity
Global debt securities Inflation assets Private equity
Real estate
Infrastructure and Forestland Liquidity

Assumed Asset Allocation 51% 20% 6% 10% 10% 2% 1%

Long-Term Expected Real Rate of Return 5.71% 2.43% 3.36% 6.95% 5.13% 5.09% -1.05%

Discount Rate

The discount rate used to measure the total pension liability was 7.65 percent. The projection of cash flows used to determine the discount rate assumed the contributions from plan members and employers will be made at statutory contribution rates. Based on these assumptions, the School Employer Pool fiduciary net position was projected to be available to make all projected future benefit payments to current plan members. Therefore, the long-term assumed investment rate of return was applied to all periods of projected benefit payments to determine total pension liability.

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

Net Pension

Discount Rate 1% decrease (6.65%)
Current discount rate (7.65%) 1% increase (8.65%)

Liability
$	158,124,872 $	105,981,422 $        62,561,739

69

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017

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

Plan Description

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

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

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

Funding Policy

Participants in APPLE are required to contribute 3.75 percent of gross salary to APPLE. The District is required to contribute 3.75 percent of gross salary expenditures to APPLE. The District's contributions to APPLE for the fiscal year ending June 30, 2017, 2016, 2015 were $233,540, $203,810, and $718,565, respectively.

On Behalf Payments

The State of California makes contributions to CalSTRS on behalf of the District. These payments consist of State General Fund contributions to CalSTRS in the amount of $13,594,744 (8.578 percent of annual payroll). Contributions are no longer appropriated in the annual Budget Act for the legislatively mandated benefits to CalPERS. Therefore, there is no on behalf contribution rate for CalPERS. Under accounting principles generally accepted in the United States of America, these amounts are to be reported as revenues and expenditures. Accordingly, these amounts have been recorded in these financial statements.

NOTE 16 - COMMITMENTS AND CONTINGENCIES

Grants

The District received financial assistance from Federal and State agencies in the form of grants. The disbursement of funds received under these programs generally requires compliance with terms and conditions specified in the grant agreements and are subject to audit by the grantor agencies. Any disallowed claims resulting from such audits could become a liability of the General Fund or other applicable funds. However, in the opinion of management, any such disallowed claims will not have a material adverse effect on the overall financial position of the District at June 30, 2017.

70

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017

Litigation

The District is involved in various litigation arising from the normal course of business. In the opinion of management and legal counsel, the disposition of all litigation pending is not expected to have a material adverse effect on the overall financial position of the District at June 30, 2017.

Operating Leases

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

Construction Commitments

As of June 30, 2017, the District had the following commitments with respect to the unfinished capital projects:

Remaining Construction
Capital Projects	Commitment

Expected Date of Completion

District office final phase modernization Buchanan 2017 modernization
Red Bank 2017 modernization
Clovis Elementary 2017 modernization Clovis North 2017 modernization Lincoln 2017 modernization
Clark choir 2017 modernization
Reagan Elementary 2017 modernization Woods 2017 modernization
Total

$      2,663,939 7,419,330 286,535 2,070,403 1,238,090 4,254,882 1,076,608 850,573 553,744
$ 20,414,104

April 2018 December 2017 December 2017 December 2017 December 2017 February 2018 January 2018 November 2017 November 2017

NOTE 17 - PARTICIPATION IN JOINT POWERS AUTHORITIES

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

71

CLOVIS UNIFIED SCHOOL DISTRICT

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017

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

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

During the year ended June 30, 2017, the District made no payments to SELF for liability insurance coverage.

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

During the year ended June 30, 2017, the District made payments of $3,292,905 to ASCIP for property and liability insurance coverage.

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

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

During the year ended June 30, 2017, the District made payments of $858,714 to CART for the financing and operation of a joint technical center for high school age students.

72

REQUIRED SUPPLEMENTARY INFORMATION

73

CLOVIS UNIFIED SCHOOL DISTRICT

GENERAL FUND
BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED JUNE 30, 2017

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

Local Control Funding Formula Federal sources
Other State sources Other local sources
Total Revenues EXPENDITURES Current
Certificated salaries Classified salaries Employee benefits Books and supplies
Services and operating expenditures Other outgo
Capital outlay

Debt service - principal Debt service - interest
Total Expenditures

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

$ 336,922,509 16,417,939 47,480,571 12,753,216 413,574,235

173,977,833 67,168,367 92,692,092 31,251,841 27,760,205
(420,374) 265,133
1,523,423 25,442 394,243,962 19,330,273

1,258,573 1,400,000 (7,837,359) (5,178,786)
14,151,487

81,641,943

$ 339,166,659 17,666,181 58,603,489 18,274,964 433,711,293

178,638,160 71,625,843 105,256,064 27,731,658 29,368,980
(501,403) 4,287,860 1,523,423
25,442 417,956,027 15,755,266

1,900,350 1,401,629 (9,128,569) (5,826,590) 9,928,676
81,641,943

$ 339,166,659 17,883,624 60,947,481 18,414,399 436,412,163

178,638,160 71,667,681 107,620,815 27,731,658 29,432,341
(429,246) 4,287,860 1,523,372
25,493 420,498,134 15,914,029

1,900,350 1,400,000 (9,128,569) (5,828,219)
10,085,810

81,641,943

$                    -217,443 2,343,992 139,435 2,700,870

-(41,838)
(2,364,751) -
(63,361) (72,157)
-51
(51) (2,542,107)
158,763

-(1,629)
-(1,629)
157,134

-

Fund Balance - Ending	$ 95,793,430	$ 91,570,619	$ 91,727,753	$	157,134

See accompanying note to required supplementary information.

74

CLOVIS UNIFIED SCHOOL DISTRICT

SCHEDULE OF OTHER POSTEMPLOYMENT BENEFITS (OPEB) FUNDING PROGRESS
FOR THE YEAR ENDED JUNE 30, 2017

Actuarial Valuation Date

Actuarial Value of Assets (a)

Actuarial Accrued Liability (AAL) -Pojected
Unit Credit (b)

Unfunded AAL (UAAL) (b - a)

Funded
Ratio	Covered (a / b)            Payroll (c)

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

July 1, 2016	$ July 1, 2014	$ July 1, 2012	$

-	$ 259,527,891 -	$ 220,955,155 -	$ 167,594,127

$ 259,527,891 $ 220,955,155 $ 167,594,127

0.00%	$ 236,480,303 0.00%	$ 194,851,256 0.00%	$ 153,061,973

109.75% 113.40% 109.49%

See accompanying note to required supplementary information.

75

CLOVIS UNIFIED SCHOOL DISTRICT

SCHEDULE OF THE DISTRICT'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
FOR THE YEAR ENDED JUNE 30, 2017

CalSTRS

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

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

District's covered - employee payroll

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

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

2017

0.3363%

$ 271,983,817

154,835,535 $ 426,819,352

$ 171,698,993

158.41%

70%

2016

0.3507%

$ 236,088,495

124,864,788 $ 360,953,283

$ 163,040,743

144.80%

74%

CalPERS

District's proportion of the net pension liability (asset)	0.5366%	0.5465%

District's proportionate share of the net pension liability (asset)	$ 105,981,422	$	80,561,650

District's covered - employee payroll	$	64,365,730	$	60,511,656

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

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

164.66%

74%

133.13%

79%

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

See accompanying note to required supplementary information.

76

2015

0.3264%

$ 190,731,688

115,172,028 $ 305,903,716

$ 150,043,685

127.12%

77%

0.5259%

$	59,703,034

$	55,215,032

108.13%

83%

76

CLOVIS UNIFIED SCHOOL DISTRICT

SCHEDULE OF DISTRICT CONTRIBUTIONS FOR THE YEAR ENDED JUNE 30, 2017

2017	2016 CalSTRS

Contractually required contribution

Contributions in relation to the contractually required contribution

Contribution deficiency (excess)

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

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

District's covered - employee payroll

Contributions as a percentage of covered - employee payroll

$ 182,374,682

12.58%

$ 171,698,993

10.73%

CalPERS

Contractually required contribution

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

District's covered - employee payroll

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

$	70,034,469

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

$	64,365,730

Contributions as a percentage of covered - employee payroll	13.888%	11.847%

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

See accompanying note to required supplementary information.

77

2015

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

$ 163,040,743

8.88%

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

$	60,511,656

11.771%

77

CLOVIS UNIFIED SCHOOL DISTRICT

NOTE TO REQUIRED SUPPLEMENTARY INFORMATION JUNE 30, 2017

NOTE 1 - PURPOSE OF SCHEDULES

Budgetary Comparison Schedule

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

Schedule of Other Postemployment Benefits (OPEB) Funding Progress

This schedule is intended to show trends about the funding progress of the District's actuarially determined liability for postemployment benefits other than pensions.

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

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

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

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

Schedule of District Contributions

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

78

SUPPLEMENTARY INFORMATION

79

CLOVIS UNIFIED SCHOOL DISTRICT

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED JUNE 30, 2017

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

Federal Catalog Number

Pass-Through Entity Identifying Number

Federal Expenditures

Indian Education Pell Grant
Passed Through California Department of Education: Adult Education
Basic
Secondary Education
English Literacy and Civics Education Title I, Part A, Basic
Title I, Part C, Migrant
Title I, Part G, Advanced Placement Fee Program Title II, Part A, Supporting Effective Instruction Title II, Part B, Math and Science Partnerships
Title III, English Language Acquisition - Limited English Proficient
Title III, English Language Acquisition - Immigrant Education
Title IV, Part B, 21st Century Community Learning Centers Program
Special Education Cluster
Special Education, Part B Basic Local Assistance Special Education, Part B, Preschool Local
Entitlement
Special Education, Part B, Preschool Grants Special Education, Part B, Alternative Dispute
Resolution
Special Education, Part B, Mental Health Allocation Special Education, Part B, Preschool Staff
Development
Subtotal Special Education Cluster Special Education, Part C, Early Intervention

84.060 84.063

84.002A 84.002 84.002A 84.010 84.011 84.330B 84.367 84.366

84.365

84.365

84.186

84.027

84.027A 84.173

84.173A 84.027A

84.173A

84.181

N/A              $       102,345 N/A                       537,382

14508	177,275 13978	361,547 14109                       41,917 14329                  6,631,429 14326                       95,544 14831                       35,606 14341	711,565 14512	885,991

14346	247,157

15146	38,576

14347	121,899

13379	5,669,455

13682                     950,672 13430                     107,105

13007                       12,258 14468                     471,076

13431                         1,739 7,212,305
24314	81,623

N/A - Not applicable

See accompanying note to supplementary information.

80

CLOVIS UNIFIED SCHOOL DISTRICT

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (Continued) FOR THE YEAR ENDED JUNE 30, 2017

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

Passed Through California Department of Education:

Carl D. Perkins Career and Technical Education,

Federal Catalog Number

Pass-Through Entity Identifying Number

Federal Expenditures

Secondary 131
Perkins Career and Technical Education Improvement Act of 2006 Rural Community Equipment Grants
Workability II, Transitions Partnership

84.048	14894

84.048               15295 84.126               10006

$	241,889

66,791 153,079

Subtotal U.S. Department of Education U.S. DEPARTMENT OF AGRICULTURE
Passed Through California Department of Education: Child Nutrition Cluster
National School Lunch	10.555 Basic Breakfast	10.553 Especially Needy Breakfast	10.553 Meals Supplements - Snack	10.555 Summer Food Program	10.559 Food Distribution - Commodities	10.555
Subtotal Child Nutrition Cluster Subtotal U.S. Department of Agriculture
U.S. DEPARTMENT OF DEFENSE
Air Force Junior ROTC                                                                  12.357 Subtotal U.S. Department of Defense
U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES
Passed Through California Department of Health Care Services:
Medi-Cal Billing Option	93.778 Subtotal U.S. Department of Health and
Human Services
Total Federal Programs

17,743,920

13391                  7,169,585 13525                       68,700 13526                  1,630,073 13391                     178,530 13004                     128,622 13391                     552,938 9,728,448
9,728,448

N/A                         53,046 53,046

10013	1,271,570

1,271,570 $ 28,796,984

N/A - Not applicable

See accompanying note to supplementary information.

81

CLOVIS UNIFIED SCHOOL DISTRICT

LOCAL EDUCATION AGENCY ORGANIZATION STRUCTURE JUNE 30, 2017

ORGANIZATION

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

GOVERNING BOARD

MEMBER

Sandra A. Budd Brian D. Heryford Elizabeth J. Sandoval Christopher Casado
Jim Van Volkinburg D.D.S. Ginny L. Hovsepian
Steven G. Fogg, M.D.

OFFICE

President
Vice-President Clerk
Member Member Member Member

TERM EXPIRES

2018 2020 2018 2020 2018 2020 2020

ADMINISTRATION

Janet Young, Ed.D. Carlo Prandini, Ph.D. Michael Johnston Barry Jager
Norm Anderson Michael Clear Susan Rutledge

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

See accompanying note to supplementary information.

82

CLOVIS UNIFIED SCHOOL DISTRICT

SCHEDULE OF AVERAGE DAILY ATTENDANCE FOR THE YEAR ENDED JUNE 30, 2017

CLOVIS UNIFIED SCHOOL DISTRICT Regular ADA
Transitional kindergarten through third Fourth through sixth
Seventh and eighth Ninth through twelfth
Total Regular ADA

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

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

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

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

Second Period Report

12,458.87 9,389.77 6,541.64 12,202.34 40,592.62

15.60 8.28 2.57 12.26 38.71

0.94 2.54 3.49 11.62

18.59

0.21 0.11 0.78 0.89

1.99

13.08 20.48 37.96 71.52 40,723.43

Annual Report

12,450.12 9,370.96 6,522.83 12,078.74 40,422.65

15.60 8.28 2.57 12.26 38.71

1.03 2.62 3.44 11.02

18.11

0.21 0.11 0.78 0.89

1.99

12.98 19.77 39.68 72.43 40,553.89

See accompanying note to supplementary information.

83

CLOVIS UNIFIED SCHOOL DISTRICT

SCHEDULE OF AVERAGE DAILY ATTENDANCE, Continued FOR THE YEAR ENDED JUNE 30, 2017

CLOVIS ONLINE CHARTER SCHOOL Regular ADA
Seventh and eighth Ninth through twelfth
Total ADA (Non-Classroom Based)

Second Period                  Annual Report                         Report

46.01	47.53 312.35                        318.18 358.36                        365.71

See accompanying note to supplementary information.

84

CLOVIS UNIFIED SCHOOL DISTRICT

SCHEDULE OF INSTRUCTIONAL TIME FOR THE YEAR ENDED JUNE 30, 2017

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

1986-1987 Minutes Requirement
36,000 50,400

54,000

64,800

2016-2017 Actual Minutes
36,045

56,475 56,475 56,475

56,430 56,430 56,430 62,895 62,895

65,217 65,217 65,217 65,217

Number of Days Traditional Calendar 180

180 180 180

180 180 180 181 181

181 181 181 181

Status Complied

Complied Complied Complied

Complied Complied Complied Complied Complied

Complied Complied Complied Complied

See accompanying note to supplementary information.

85

CLOVIS UNIFIED SCHOOL DISTRICT

RECONCILIATION OF ANNUAL FINANCIAL AND BUDGET REPORT WITH AUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2017

There were no adjustments to the Unaudited Actual Financial Report which required reconciliation to the audited financial statements at June 30, 2017.

See accompanying note to supplementary information.

86

CLOVIS UNIFIED SCHOOL DISTRICT

SCHEDULE OF FINANCIAL TRENDS AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2017

(Budget)

2018 1	2017	2016	2015 GENERAL FUND

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

$ 428,396,571	$ 436,410,534	$ 421,029,907	$ 349,857,238

	3,042,726  	3,301,979  	3,627,455  	3,019,514 

	431,439,297  	439,712,513  	424,657,362  	352,876,752 

425,597,358	418,089,356	379,205,921	347,244,096

	7,882,559  	11,537,347  	16,068,448  	6,126,886 

	433,479,917  	429,626,703  	395,274,369  	353,370,982 

 $	(2,040,620)  $ 10,085,810   $ 29,382,993   $	(494,230) 

ENDING FUND BALANCE AVAILABLE RESERVES 2 AVAILABLE RESERVES AS A
PERCENTAGE OF TOTAL OUTGO

$ 89,687,133 $ 75,771,075

17.5%

$ 91,727,753 $ 75,872,392

17.7%

$ 81,641,943 $ 60,413,137

15.3%

$ 52,258,950 $ 41,902,962

11.9%

LONG-TERM OBLIGATIONS AVERAGE DAILY
ATTENDANCE AT P-2

Not Available

41,188

$ 769,170,634

40,723

$ 781,542,615

40,027

$652,633,834

39,379

The General Fund balance has increased by $39,468,803 over the past two years. The fiscal year 2017-2018 budget projects a decrease of $2,040,620 (2.22 percent). For a district this size, the State recommends available reserves of at least 2.0 percent of total General Fund expenditures, transfers out, and other uses (total outgo).

The District has incurred operating surpluses in two of the past three years and anticipates incurring an operating deficit during the 2017-2018 fiscal year. Total long-term obligations have increased by $116,536,800 over the past two years primarily due to the issuance of General Obligation Bonds.

Average daily attendance has increased by 1,345 over the past two years. Additional growth of 465 ADA is anticipated during fiscal year 2017-2018.

1 Budget 2018 is included for analytical purposes only and has not been subjected to audit.

2 Available reserves consist of all unassigned fund balances including all amounts reserved for economic uncertainties contained with the General Fund.

See accompanying note to supplementary information.

87

CLOVIS UNIFIED SCHOOL DISTRICT

SCHEDULE OF CHARTER SCHOOLS FOR THE YEAR ENDED JUNE 30, 2017

Name of Charter School Clovis Online School (Charter School Number 1006)

Included in Audit Report Yes

See accompanying note to supplementary information.

88

CLOVIS UNIFIED SCHOOL DISTRICT

NON-MAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET
JUNE 30, 2017

Charter School Fund
ASSETS

Adult Education
Fund

Child Development
Fund

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

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

$	1,930,334	$ 216,403 524,909 370,500
-

$	3,042,146	$

$	44,046	$ 5,672
49,718

370,500 91,900 -
2,530,028 2,992,428

$	3,042,146	$

3,156,424	$ 829,058
-104,500 33,056
4,123,038	$

35,151	$ 153,386 188,537

141,056 -
3,793,445 -3,934,501

4,123,038	$

1,245,737 573,232
-14,980 -
1,833,949

162,003 120,935 282,938

14,980 10,190 -
1,525,841 1,551,011

1,833,949

See accompanying note to supplementary information.

89

Cafeteria

Fund

Deferred Maintenance
Fund

Capital Facilities
Fund

County School Facilities
Fund

Special Reserve Capital Outlay
Fund

$	6,255,933	$ 1,584,622
--
290,393

$	8,130,948	$

$	337,931	$ 187,208
525,139

1,659,729	$ 4,800
---
1,664,529	$

343,630	$ -
343,630

11,366,086	$ 38,560
224,971 --
11,629,617	$

479,147	$ 172
479,319

1,857,587	$ 2,000
33,226 --
1,892,813	$

416,159	$ 16,613
432,772

2,629,847 72,004 5,803,842 -
-8,505,693

196,201 33,226
229,427

290,393 7,315,416 -
-

7,605,809

--
1,320,899 -
1,320,899

-11,150,298 -
-

11,150,298

-1,460,041 -
-

1,460,041

---
8,276,266

8,276,266

$	8,130,948	$	1,664,529	$	11,629,617	$	1,892,813	$	8,505,693

89

CLOVIS UNIFIED SCHOOL DISTRICT

NON-MAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET
JUNE 30, 2017

Central Valley School Districts Financing Corporation Fund
ASSETS

Total Non-Major
Governmental

Funds

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

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

$	1,442,955	$ 4,800
---
$	1,447,755	$

$		-	$ 393,663 393,663

-1,054,092 -
-1,054,092

$	1,447,755	$

31,544,632 3,325,479 6,586,948 489,980 323,449 42,270,488

2,014,268 910,875 2,925,143

816,929 21,081,937 5,114,344 12,332,135 39,345,345

42,270,488

See accompanying note to supplementary information.

90

CLOVIS UNIFIED SCHOOL DISTRICT

NON-MAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2017

REVENUES

Local Control Funding Formula

Charter School Fund

$	3,326,070

Adult Education Fund

$	-

Federal sources Other State sources Other local sources
Total Revenues EXPENDITURES Current
Instruction

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

Interest and other

Total Expenditures

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

-218,521 38,460
3,583,051

1,614,101

10,732 64,835 450,346

-205,855

48,356 29,145 -

--
2,423,370 1,159,681

----
1,159,681 1,832,747
$	2,992,428	$

1,184,912 2,539,996 2,082,946 5,807,854

2,977,268

627,128 180,409 1,305,473

-303,987

116,835 302,768 30,562

--
5,844,430 (36,576)

846,880 --
846,880 810,304 3,124,197
3,934,501

See accompanying note to supplementary information.

91

Child Development
Fund

Cafeteria

Fund

Deferred Maintenance
Fund

Capital Facilities
Fund

County School Facilities
Fund

$	-	$ -
3,709,774 7,612,624 11,322,398

8,626,117

1,570,821 --

-125,389

478,671 234,556 447,464

63,000 -
11,546,018 (223,620)

-378,000
(1,189,716) (811,716) (1,035,336)
2,586,347

$	1,551,011	$

-	$ 9,728,448
672,588 4,137,478 14,538,514

-

---

14,010,182 -

645,297 --

--
14,655,479 (116,965)

--
(959,679) (959,679) (1,076,644)
8,682,453

7,605,809	$

-	$ -
-19,589 19,589

-

---

--

-2,064,266 1,247,686

--
3,311,952 (3,292,363)

4,100,000 -
(1,420,700) 2,679,300
(613,063) 1,933,962
1,320,899	$

-	$ -
-16,329,504 16,329,504

-

---

--

-2,085,627 5,998,312

--
8,083,939 8,245,565

--
(837,089) (837,089)
7,408,476 3,741,822
11,150,298	$

-----

-

---

--

-416,159 265,909

--
682,068 (682,068)

682,068 --
682,068 -
1,460,041

1,460,041

91

CLOVIS UNIFIED SCHOOL DISTRICT

NON-MAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2017

Special Reserve Capital Outlay Fund
REVENUES

Central Valley School Districts Financing Corporation
Fund

Local Control Funding Formula Federal sources
Other State sources Other local sources
Total Revenues EXPENDITURES Current
Instruction

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

Interest and other

Total Expenditures

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

$	-	$ -
-4,441,092 4,441,092

-

---

--

-286,449
4,033,159

--
4,319,608 121,484

4,607,175 -
(3,747,589) 859,586 981,070
7,295,196

$	8,276,266	$

---
18,597 18,597

-

---

--

---

385,000 8,663 393,663
(375,066)

393,663 --
393,663 18,597 1,035,495
1,054,092

See accompanying note to supplementary information.

92

Total Non-Major
Governmental Funds

$          3,326,070 10,913,360 7,140,879 34,680,290 56,060,599

13,217,486

2,208,681 245,244 1,755,819

14,010,182 635,231

1,289,159 5,418,970 12,023,092

448,000 8,663 51,260,527 4,800,072

10,629,786 378,000
(8,154,773) 2,853,013 7,653,085
31,692,260 $	39,345,345

92

CLOVIS UNIFIED SCHOOL DISTRICT

AGENCY FUNDS
COMBINING BALANCE SHEET JUNE 30, 2017

Warrant/ Pass-Through

Fund

ASSETS

Associated Student Body
Funds	Total

Cash in county treasury Accounts receivable
Total Assets

LIABILITIES Accounts payable
Due to student groups/other agencies

Total Liabilities

$	8,713,510	$ 206,647
$	8,920,157	$

$	3,207,315	$ 5,712,842
$	8,920,157	$

2,095,501 -2,095,501

-2,095,501
2,095,501

$        10,809,011 206,647
$	11,015,658

$          3,207,315 7,808,343
$	11,015,658

See accompanying note to supplementary information.

93

CLOVIS UNIFIED SCHOOL DISTRICT

AGENCY FUNDS
COMBINING STATEMENT OF ASSETS AND LIABILITIES STUDENT BODY FUNDS
JUNE 30, 2017

High Schools

ASSETS

Intermediate

Schools

Elementary

Schools	Total

Cash on hand and in banks

LIABILITIES

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

$	1,112,402	$

$	556,420	$ 555,982
$	1,112,402	$

294,431	$

94,552	$ 199,879
294,431	$

688,668

-688,668
688,668

$	2,095,501

$         650,972 1,444,529
$	2,095,501

See accompanying note to supplementary information.

94

CLOVIS UNIFIED SCHOOL DISTRICT

COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FOR HIGH SCHOOL AND INTERMEDIATE SCHOOL STUDENT BODY FUNDS
FOR THE YEAR ENDED JUNE 30, 2017

HIGH SCHOOLS

ASSETS

Balance

July 1, 2016	Additions

Balance

Deductions	June 30, 2017

Cash on Hand and in Banks

LIABILITIES

Due to Student Groups Club Accounts
General ASB Accounts

Total Due to Student Groups

INTERMEDIATE SCHOOLS ASSETS
Cash on Hand and in Banks

LIABILITIES

Due to Student Groups Club Accounts
General ASB Accounts

Total Due to Student Groups

TOTALS ASSETS
Cash on Hand and in Banks

LIABILITIES

Due to Student Groups Club Accounts
General ASB Accounts

Total Due to Student Groups

$	1,106,143

$        486,608 619,535
$	1,106,143

$	305,494

$          97,539 207,955
$	305,494

$	1,411,637

$        584,147 827,490
$	1,411,637

$	4,150,732

$     1,124,818 3,025,914
$	4,150,732

$	888,032

$        303,109 584,923
$	888,032

$	5,038,764

$     1,427,927 3,610,837
$	5,038,764

$	4,144,473	$

$	1,055,006	$ 3,089,467
$	4,144,473	$

$	899,095	$

$	306,096	$ 592,999
$	899,095	$

$	5,043,568	$

$	1,361,102	$ 3,682,466
$	5,043,568	$

1,112,402

556,420 555,982 1,112,402

294,431

94,552 199,879 294,431

1,406,833

650,972 755,861
1,406,833

See accompanying note to supplementary information.

95

CLOVIS UNIFIED SCHOOL DISTRICT

COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES STUDENT BODY FUNDS
HIGH SCHOOLS
FOR THE YEAR ENDED JUNE 30, 2017

Buchanan High School

ASSETS

Balance

July 1, 2016	Additions

Balance

Deductions	June 30, 2017

Cash on Hand and in Banks

LIABILITIES

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

Clovis High School ASSETS
Cash on Hand and in Banks

LIABILITIES

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

Clovis East High School ASSETS
Cash on Hand and in Banks

LIABILITIES

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

$	265,652

$       125,275 140,377
$	265,652

$	278,429

$       127,742 150,687
$	278,429

$	158,529

$         70,019 88,510
$	158,529

$	883,822

$       140,322 743,500
$	883,822

$	870,335

$       153,330 717,005
$	870,335

$	465,407

$       193,504 271,903
$	465,407

$	915,783	$

$       138,799       $ 776,984
$	915,783	$

$	848,810	$

$       146,763       $ 702,047
$	848,810	$

$	474,985	$

$       182,264       $ 292,721
$	474,985	$

233,691

126,798 106,893 233,691

299,954

134,309 165,645 299,954

148,951

81,259 67,692
148,951

See accompanying note to supplementary information.

96

CLOVIS UNIFIED SCHOOL DISTRICT

COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES STUDENT BODY FUNDS
HIGH SCHOOLS, Continued
FOR THE YEAR ENDED JUNE 30, 2017

Clovis North High School

ASSETS

Balance

July 1, 2016	Additions

Balance

Deductions	June 30, 2017

Cash on Hand and in Banks

LIABILITIES

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

Clovis West High School ASSETS
Cash on Hand and in Banks

LIABILITIES

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

Gateway Continuation School ASSETS
Cash on Hand and in Banks

LIABILITIES

Due to Student Groups

General ASB Accounts

$	255,504

$         91,009 164,495
$	255,504

$	124,278

$         72,563 51,715
$	124,278

$	23,751

$	23,751

$ 1,167,242

$       421,444 745,798
$ 1,167,242

$	751,206

$       216,218 534,988
$	751,206

$	12,720

$	12,720

$ 1,157,728	$

$       404,670       $ 753,058
$ 1,157,728	$

$	729,065	$

$       182,510       $ 546,555
$	729,065	$

$	18,102	$

$	18,102	$

265,018

107,783 157,235 265,018

146,419

106,271 40,148 146,419

18,369

18,369

See accompanying note to supplementary information.

97

CLOVIS UNIFIED SCHOOL DISTRICT

COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES STUDENT BODY FUNDS
HIGH SCHOOLS, Continued
FOR THE YEAR ENDED JUNE 30, 2017

Balance

July 1, 2016	Additions Totals
ASSETS

Balance

Deductions	June 30, 2017

Cash on Hand and in Banks

LIABILITIES

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

$ 1,106,143

$       486,608 619,535
$ 1,106,143

$ 4,150,732

$ 1,124,818 3,025,914
$ 4,150,732

$ 4,144,473

$ 1,055,006 3,089,467
$ 4,144,473

$	1,112,402

$          556,420 555,982
$	1,112,402

See accompanying note to supplementary information.

98

CLOVIS UNIFIED SCHOOL DISTRICT

COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES STUDENT BODY FUNDS
INTERMEDIATE SCHOOLS
FOR THE YEAR ENDED JUNE 30, 2017

Alta Sierra Intermediate School

ASSETS

Balance

July 1, 2016	Additions

Balance

Deductions	June 30, 2017

Cash on Hand and in Banks

LIABILITIES

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

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

LIABILITIES

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

Kastner Intermediate School ASSETS
Cash on Hand and in Banks

LIABILITIES

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

$	48,265

$         13,279 34,986
$	48,265

$	100,008

$         25,099 74,909
$	100,008

$	90,024

$         43,039 46,985
$	90,024

$	307,077

$         78,771 228,306
$	307,077

$	267,516

$         94,833 172,683
$	267,516

$	196,945

$       103,646 93,299
$	196,945

$	294,797	$	60,545

$         78,168       $            13,882 216,629                     46,663
$	294,797	$	60,545

$	286,590	$	80,934

$       103,671       $            16,261 182,919                     64,673
$	286,590	$	80,934

$	202,003	$	84,966

$       107,023       $            39,662 94,980                     45,304
$	202,003	$	84,966

See accompanying note to supplementary information.

99

CLOVIS UNIFIED SCHOOL DISTRICT

COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES STUDENT BODY FUNDS
INTERMEDIATE SCHOOLS, Continued FOR THE YEAR ENDED JUNE 30, 2017

Reyburn Intermediate School

ASSETS

Balance

July 1, 2016	Additions

Balance

Deductions	June 30, 2017

Cash on Hand and in Banks

LIABILITIES

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

Totals ASSETS
Cash on Hand and in Banks

LIABILITIES

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

$	67,197

$         16,122 51,075
$	67,197

$	305,494

$         97,539 207,955
$	305,494

$	116,494

$         25,859 90,635
$	116,494

$	888,032

$       303,109 584,923
$	888,032

$	115,705	$

$	17,234	$ 98,471
$	115,705	$

$	899,095	$

$       306,096       $ 592,999
$	899,095	$

67,986

24,747 43,239 67,986

294,431

94,552 199,879
294,431

See accompanying note to supplementary information.

100

CLOVIS UNIFIED SCHOOL DISTRICT

COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES STUDENT BODY FUNDS
ELEMENTARY SCHOOLS
FOR THE YEAR ENDED JUNE 30, 2017

Balance

ELEMENTARY SCHOOL	July 1, 2016	Additions

Balance

Deductions	June 30, 2017

Boris Bud Rank
Cedarwood Century
Clovis Elementary 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

$		-18,889 14,671 13,971 12,717 23,816 18,831 14,984 22,006 61,852
7,088 15,562 54,904 4,177 19,326 11,347 8,075 11,174 17,122 17,046 18,962 14,820 28,697 443 17,115 43,915 32,598 10,787 26,877 37,433 21,510 12,407 31,434
$	664,556

$            85,380 133,509 111,524 100,803 126,034 96,977
90,607 73,566 124,728 86,938 60,838 97,734 163,400 105,664 109,210 74,491 75,945 64,566 70,198 69,871 123,475 71,947 97,868 50,314 54,335 176,464 108,996 42,647 88,371 59,237 69,505 91,549 117,819
$	3,074,510

$	 84,759	$ 140,596 115,158
92,480 110,045 105,442 87,307 78,448 143,571 93,255 59,083 78,797 160,008 100,661 106,257 77,478 78,582 59,192 68,498 61,761 113,899 75,539 89,221 48,929 54,133 171,814 102,004 42,463 102,441 67,469 69,318 90,957 120,833
$	3,050,398	$

621 11,802 11,037 22,294 28,706 15,351 22,131 10,102 3,163 55,535 8,843 34,499 58,296 9,180 22,279 8,360 5,438 16,548 18,822 25,156 28,538 11,228 37,344 1,828 17,317 48,565 39,590 10,971 12,807 29,201 21,697 12,999 28,420
688,668

See accompanying note to supplementary information.

101

CLOVIS UNIFIED SCHOOL DISTRICT

NOTE TO SUPPLEMENTARY INFORMATION JUNE 30, 2017

NOTE 1 - PURPOSE OF SCHEDULES

Schedule of Expenditures of Federal Awards

The accompanying Schedule of Expenditures of Federal Awards includes the Federal grant activity of the District and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. The District has not elected to use the ten percent de minimis cost rate as covered in Section 200.414 Indirect (F&A) costs of the Uniform Guidance.

Local Education Agency Organization Structure

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

Schedule of Average Daily Attendance (ADA)

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

Schedule of Instructional Time

The District has received incentive funding for increasing instructional time as provided by the Incentives for Longer Instructional Day. The District neither met nor exceeded its target funding. This schedule presents information on the amount of instructional time offered by the District and whether the District complied with the provisions of Education Code Sections 46200 through 46206.

Districts must maintain their instructional minutes at the 1986-1987 requirements as required by Education Code Section 46201.

Reconciliation of Annual Financial and Budget Report With Audited Financial Statements

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

Schedule of Financial Trends and Analysis

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

102

CLOVIS UNIFIED SCHOOL DISTRICT

NOTE TO SUPPLEMENTARY INFORMATION JUNE 30, 2017

Proposition 10 Grants

This schedule discloses the District's revenues and expenditures that occurred during the fiscal year to support the School Readiness Initiative program (SRI). The program is funded from the Tobacco tax money referred to as Proposition 10 money. The program's objectives are to provide early care and educational services with Kindergarten transition programs, provide parenting and family support services, provide health and social services, and to assist in the school's capacity to prepare children and families for school success.

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

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

Agency Funds - Combining Balance Sheet

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

103

INDEPENDENT AUDITOR'S REPORTS

104

INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

Governing Board
Clovis Unified School District Clovis, California

We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statementsof the governmental activities, each major fund, and the aggregate remaining fund information of Clovis Unified School District (the District) as of and for the year ended June 30, 2017, 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 November 30, 2017.

Internal Control Over Financial Reporting

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

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

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

105

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 District's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Fresno, California November 30, 2017

106

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

Governing Board
Clovis Unified School District Clovis, California

Report on Compliance for Each Major Federal Program

We have audited Clovis Unified School District's compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of Clovis Unified School District's (the District) major Federal programs for the year ended June 30, 2017. Clovis Unified School District's major Federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs.

Management's Responsibility

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

Auditor's Responsibility

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

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

107

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, 2017.

Report on Internal Control Over Compliance

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

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

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

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

Fresno, California November 30, 2017

108

INDEPENDENT AUDITOR'S REPORT ON STATE COMPLIANCE

Governing Board
Clovis Unified School District Clovis, California

Report on State Compliance

We have audited Clovis Unified School District's compliance with the types of compliance requirements as identified in the 2016-2017 Guide for Annual Audits of K-12 Local Education Agencies and State Compliance Reporting that could have a direct and material effect on each of the Clovis Unified School District's State government programs as noted below for the year ended June 30, 2017.

Management's Responsibility

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

Auditor's Responsibility

Our responsibility is to express an opinion on compliance of each of the Clovis Unified School District's State programs based on our audit of the types of compliance requirements referred to above. We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the 2016-2017 Guide for Annual Audits of K-12 Local Education Agencies and State Compliance Reporting. These standards require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the compliance requirements referred to above that could have a material effect on the applicable government programs noted below. An audit includes examining, on a test basis, evidence about Clovis Unified School District's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinions. Our audit does not provide a legal determination of Clovis Unified School District's compliance with those requirements.

Unmodified Opinion

In our opinion, Clovis Unified School District complied, in all material respects, with the compliance requirements referred to above that are applicable to the government programs noted below that were audited for the year ended June 30, 2017.

109

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

LOCAL EDUCATION AGENCIES OTHER THAN CHARTER SCHOOLS Attendance
Teacher Certification and Misassignments Kindergarten Continuance
Independent Study Continuation Education Instructional Time Instructional Materials
Ratios of Administrative Employees to Teachers Classroom Teacher Salaries
Early Retirement Incentive Gann Limit Calculation
School Accountability Report Card Juvenile Court Schools
Middle or Early College High Schools K-3 Grade Span Adjustment Transportation Maintenance of Effort Mental Health Expenditures

SCHOOL DISTRICTS, COUNTY OFFICES OF EDUCATION, AND CHARTER SCHOOLS
Educator Effectiveness California Clean Energy Jobs Act
After School Education and Safety Program: General Requirements
After School Before School
Proper Expenditure of Education Protection Account Funds Unduplicated Local Control Funding Formula Pupil Counts Local Control Accountability Plan
Independent Study - Course Based Immunizations

CHARTER SCHOOLS Attendance
Mode of Instruction
Non Classroom-Based Instruction/Independent Study for Charter Schools Determination of Funding for Non Classroom-Based Instruction
Annual Instruction Minutes Classroom-Based Charter School Facility Grant Program

Procedures Performed

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

Yes Yes

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

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

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

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

110

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

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

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

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

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

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

Fresno, California November 30, 2017

111

SCHEDULE OF FINDINGS AND QUESTIONED COSTS

112

CLOVIS UNIFIED SCHOOL DISTRICT

SUMMARY OF AUDITOR'S RESULTS FOR THE YEAR ENDED JUNE 30, 2017

FINANCIAL STATEMENTS Type of auditor's report issued:
Internal control over financial reporting: Material weakness identified? Significant deficiency identified?
Noncompliance material to financial statements noted?

FEDERAL AWARDS

Internal control over major Federal programs: Material weakness identified?
Significant deficiency identified?

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

Any audit findings disclosed that are required to be reported in accordance with Section 200.516(a) of the Uniform Guidance?
Identification of major Federal programs:

Unmodified

No None reported
No

No None reported
Unmodified

No

CFDA Numbers

84.027, 84.027A, 84.173,

84.173A

Name of Federal Program or Cluster

Special Education Cluster

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

Auditee qualified as low-risk auditee?

$	863,910

Yes

STATE AWARDS

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

113

CLOVIS UNIFIED SCHOOL DISTRICT

FINANCIAL STATEMENT FINDINGS FOR THE YEAR ENDED JUNE 30, 2017

None reported.

114

CLOVIS UNIFIED SCHOOL DISTRICT

FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2017

None reported.

115

CLOVIS UNIFIED SCHOOL DISTRICT

STATE AWARDS FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2017

None reported.

116

CLOVIS UNIFIED SCHOOL DISTRICT

SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS FOR THE YEAR ENDED JUNE 30, 2017

There were no audit findings reported in the prior year's schedule of financial statement findings.

117