December 20, 2022

To the Governing Board Clovis Unified School District Clovis, California

We have audited the financial statements of Clovis Unified School District (the District) as of and for the year ended June 30, 2022, and have issued our report thereon dated December 20, 2022. Professional standards require that we advise you of the following matters relating to our audit.

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

As communicated in our letter dated August 1, 2022, our responsibility, as described by professional standards, is to form and express an opinion about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America and to express an opinion on whether the District complied with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of the District’s major federal programs. Our audit of the financial statements and major program compliance does not relieve you or management of its respective responsibilities.

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

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

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

We have provided our comments regarding internal controls during our audit in our Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards dated December 20, 2022. We have also provided our comments regarding compliance with the types of compliance requirements referred to above and internal controls over compliance during our audit in our Independent Auditor’s Report on Compliance with Each Major Federal Program and Report on Internal Control Over Compliance Required by the Uniform Guidance dated December 20, 2022.

Planned Scope and Timing of the Audit

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

Compliance with All Ethics Requirements Regarding Independence

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

Qualitative Aspects of the Entity’s Significant Accounting Practices

Significant Accounting Policies

Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the District is included in Note 1 to the financial statements. As described in Notes 1 and 16 to the financial statements, the District changed accounting policies related to accounting for lease activities to adopt the provisions of GASB Statement No. 87, Leases. Accordingly, the accounting change has been retrospectively applied to the financial statements beginning July 1, 2021. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.

Significant Accounting Estimates

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

The most sensitive accounting estimates affecting the financial statements were:

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

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

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

Financial Statement Disclosures

Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting District’s financial statements relate to Net Other Postemployment Benefits (OPEB) Liability and Plan (Note 10) and the Employee Retirement Systems (Note 13).

Significant Difficulties Encountered during the Audit

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

Uncorrected and Corrected Misstatements

For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole. Uncorrected misstatements or matters underlying those uncorrected misstatements could potentially cause future-period financial statements to be materially misstated, even though the uncorrected misstatements are immaterial to the financial statements currently under audit. There were no uncorrected or corrected missstatements identified as a result of our audit procedures. There were no uncorrected or corrected missstatements identified as a result of our audit procedures.

Disagreements with Management

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

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

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

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Emphasis of Matter

As discussed in Notes 1 and 16 to the financial statements, The District has adopted the provisions of GASB Statement No. 87, Leases, which has resulted in a restatement of the net position as of July 1, 2021. Our opinions are not modified with respect to this matter.

Representations Requested from Management

We have requested certain written representations from management which are included in the management representation letter dated December 20, 2022.

Management’s Consultations with Other Accountants

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

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

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

Fresno, California

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Financial Statements June 30, 2022
Clovis Unified School District

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Clovis Unified School District Table of Contents
June 30, 2022

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

Government Fund Financial Statements

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

Proprietary Fund Financial Statements

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

Notes to Financial Statements.................................................................................................................................29 Required Supplementary Information
Budgetary Comparison Schedule – General Fund ...............................................................................................75 Budgetary Comparison Schedule – Cafeteria Fund .............................................................................................76 Schedule of Changes in the District’s Total OPEB Liability and Related Ratios ...................................................77 Schedule of the District’s Proportionate Share of the Net OPEB Liability – MPP Program.................................78 Schedule of the District’s Proportionate Share of the Net Pension Liability.......................................................79 Schedule of the District’s Contributions..............................................................................................................81 Notes to Required Supplementary Information..................................................................................................83

Supplementary Information

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

Independent Auditor’s Reports

Clovis Unified School District Table of Contents
June 30, 2022

Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards.................................................................................................................................................................99

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

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

Independent Auditor’s Report

To the Governing Board Clovis Unified School District Clovis, California

Report on the Audit of the Financial Statements

Opinions

We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Clovis Unified School District as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Clovis Unified School District, as of June 30, 2022, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions

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

Adoption of New Accounting Standard

As discussed in Notes 1 and 16 to the financial statements, the Clovis Unified School District has adopted the provisions of Government Accounting Standards Board (GASB) Statement No. 87, Leases, for the year ended June 30, 2022. Accordingly, a restatement has been made to the governmental activities as of July 1, 2021, to restate beginning net position. Our opinions are not modified with respect to this matter.

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Responsibilities of Management for the Financial Statements

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

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

Auditor’s Responsibilities for the Audit of the Financial Statements

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

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

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

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

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Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison information, schedule of changes in the District’s total OPEB liability and related ratios, schedule of the District’s proportionate share of the net OPEB liability – MPP program, schedule of the District’s proportionate share of the net pension liability, and the schedule of the District’s contributions, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with 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.

Supplementary 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 schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, combining non-major governmental fund financial statements, and other supplementary information listed in the table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards, combining non-major governmental fund financial statements, and other supplementary information listed in the table of contents are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated December 20, 2022 on our consideration of Clovis Unified School District’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, 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

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Government Auditing Standards in considering Clovis Unified School District’s internal control over financial reporting and compliance.

Fresno, California December 20, 2022

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Management’s Discussion and Analysis June 30, 2022

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, 2022, with comparative information for the fiscal year ending June 30, 2021.

Financial Highlights

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

Overview of the Financial Statements

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

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

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

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Clovis Unified School District Management’s Discussion and Analysis June 30, 2022

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

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

Figure A-2. Major Features of the Government-wide and Fund Financial Statements
Fund Statements
Type of Statements	Government-Wide
	Governmental Funds
	Proprietary Funds

Scope
	
Entire District
	
The activities of the District that are not, such as special education and building maintenance
	
The District’s self-insurance fund accounts for the activity associated with the self-insured health and welfare, worker’s compensation and a portion of the retiree benefits.

Required financial statements
	
•Statement of net position

•Statement of activities
	
•Balance sheet

•Statement of revenues, expenditures and changes in fund balances

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

•Statement of revenues, expenditures and changes in net position

•Statement of Cash Flows

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Clovis Unified School District Management’s Discussion and Analysis June 30, 2022

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

Fund Statement
Type of Statements
	Government-Wide
	Governmental Funds

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

Type of asset/liability information
	
All assets and liabilities both financial and capital, short-term and long-term
	
Only assets expected to be used up and liabilities that come due during the year or soon thereafter; no capital assets included

Type of inflow/outflow information
	
All revenues and expenses during year, regardless of when cash is received or paid
	
Revenues for which cash is received during or soon after the end of the year; expenditures when goods or services have been received and payment is due during the year or soon thereafter

GOVERNMENT-WIDE STATEMENTS

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

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

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

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

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

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

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Clovis Unified School District Management’s Discussion and Analysis June 30, 2022

FUND FINANCIAL STATEMENTS

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

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

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

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Clovis Unified School District Management’s Discussion and Analysis June 30, 2022

FINANCIAL ANALYSIS OF THE DISTRICT AS A WHOLE

Net Position: The District’s combined net position was $113.2 million on June 30, 2022, increasing by $70.6 million (165.8%) (see Table A-1).

Table A-1

Governmental Activities
2021
	2022	       	as Restated	

Assets
Current and other assets Capital assets
Right-to-use leased assets

Total assets

Deferred outflows of resources

Liabilities
Current liabilities Long-term liabilities

Total liabilities

Deferred inflows of resources

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

$ 618,212,891 946,544,747
	4,170,303 

 1,568,927,941 

	200,412,491 

56,034,694
 1,269,825,744 

 1,325,860,438 

	330,237,105 

632,835,455 232,977,156
	(752,569,722) 

$ 523,289,108 944,376,485
	4,468,182 

 1,472,133,775 

	235,331,531 

82,330,711
 1,566,519,197 

 1,648,849,908 

	16,014,147 

616,463,623 162,260,944
	(736,123,316) 

Total net position	$ 113,242,889	$	42,601,251

Changes in Net Position: The District’s total governmental revenues were $690.1 million (see Table A-2). Property taxes and state aid formula accounted for most of the District’s revenue, with federal and state aid contributing about $332.7 million and property taxes contributing about $139.8 million. Another $146.9 million came from categorical programs, $10.8 million came from capital grants, and the remainder came from fees charged for services of $23.7 million, and miscellaneous sources of $36.2 million.

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Clovis Unified School District Management’s Discussion and Analysis June 30, 2022

The total cost of all governmental programs and services was $619.4 million (see Table A-2). The District’s expenses are predominantly related to educating and caring for students (77.0%). The purely administrative activities of the District accounted for just five percent of total costs. Plant services was $67.6 million, accounting for 11.0% of the District’s expenses. Revenues surpassed expenses, increasing net position by
$70.6 million over last year predominately due to the additional Federal and State revenues the District received due to the COVID-19 pandemic.

Table A-2

Governmental Activities
	2022	       	2021*	

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

Total revenues

Expenses
Instruction-related Pupil services Administration Plant services Other

Total expenses

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

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

	690,053,249 

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

	619,411,611 

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

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

	669,782,277 

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

	664,646,127 

Change in net position	$ 70,641,638	$	5,136,150

* The revenues and expenses for fiscal year 2021 were not restated to show the effects of GASB 87 for comparative purposes.

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Clovis Unified School District Management’s Discussion and Analysis June 30, 2022

GOVERNMENTAL ACTIVITIES

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

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

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

Table A-3

	Total Cost of Services	
	2022	       	2021*	

	Net Cost of Services	
	2022	       	2021*	

Instruction Pupil services Administration Plant services
All other services

Total

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

$ 619,411,611

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

$ 664,646,127

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

$ (438,068,429)

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

$ (471,613,804)

* The total and net cost of services for fiscal year 2021 were not restated to show the effects of GASB 87 for comparative purposes.

•	The net cost of governmental activities this year was $438.1 million as reflected on the Statement of Activities.
•	Some of the costs were paid by the users of the District’s programs totaling $23.7 million.
•	The federal and state governments subsidized certain programs with operating grants and contributions totaling $146.9 million.
•	 Most of the District’s costs, $332.7 million, however, were paid for by District taxpayers and the taxpayers of California, in general.

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Clovis Unified School District Management’s Discussion and Analysis June 30, 2022

THE DISTRICT’S FUNDS

As the District completed this year, our governmental funds reported a combined fund balance of $501.6 million, which is an increase of $119.7 million from last year (Table A-4).

Table A-4

	Balances and Activity	
Revenues and	Expenditures July 1, 2021	Other Financing            and Other
Governmental Funds	     as Restated	     	Sources	      Financing Uses 	 June 30, 2022 

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

Total

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

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

$ 381,900,494

$ 572,289,756 6,748,158 8,386,034 5,618,114 19,850,712 21,995,781 2,809,085 5,022,519 22,990,715 9,034,555

109,206,874 177,952,165
	(234) 

$ 961,904,234

$ 569,588,707 5,526,081 7,391,757 5,950,048 12,845,384 16,540,201 3,456,955 24,686,757 11,915,608 4,519,261

3,702,733 176,105,731
	951 

$ 842,230,174

$ 166,043,780 3,478,946 8,189,352 3,278,277 8,274,655 11,396,531 10,771 31,484,714 51,270,698 44,817,318

120,885,349 52,444,163
	- 

$ 501,574,554

The primary reasons for the changes are:

a.     The fund balance in the General Fund increased $2.7 million to $166.0 million. The net increase is due primarily to additional Federal and State revenue received because of the COVID-19 pandemic.
b. The special revenue funds reported a net increase of $13.7 million with moderate changes across all funds except the Child Development Fund which had an increase of $7.0 million and the Cafeteria Fund which increased by $5.5 million.
c.	The capital projects funds showed an increase of $101.4 million. This overall increase is due to $10.8 million in State construction funding that was finally received for several past projects and $102.5 million proceeds from the issuance of Certificates of Participation (COPs).
d. The Bond Interest and Redemption Fund reported an increase of $1.8 million primarily due to the refunding bond issuance premium and property tax collections in excess of bond principal and interest payments.

12

Clovis Unified School District Management’s Discussion and Analysis June 30, 2022

GENERAL FUND BUDGETARY HIGHLIGHTS

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

• Net increases in both revenue and expense for federal, state, and local grant awards. • Posting of deferred categorical revenue.
• GASB Statement No. 68 requires the District to recognize the State's share of the District's unfunded CalSTRS liability. This resulted in a revenue and expenditure adjustment of $3.1 million.
• The Adopted Budget's revenues over expenditures resulted in the District anticipating a surplus of
$7.2 million. The Adopted Budget was structured in such a way that the District could manage any changes from the State. It was also developed under the assumptions released with the Governor’s May Revision projecting a COLA of 5.07% for the LCFF.
• The Board approved a 5.5% salary schedule increase subsequent to the adoption of the budget, resulting in increased expenditures.
• For the first time in several years, the District is experiencing declining enrollment. The decline is directly related to the pandemic. Enrollment declined by 932 during 2019-2020 and an additional 322 in
2021-2022; total decrease 1,254 in enrollment. The District is planning to return to a growth pattern as the pandemic comes to an end.
• Due to the pandemic, districts were held harmless and funded on 2019-2020 P-2 ADA for fiscal year 2021 and 2022.
• Actual revenues to expenditures resulted in a surplus of $2.7 million, however $2.5 million of the fund balance is non-spendable, $29.6 million is restricted for restricted programs and $77.7 million is committed for the District’s board approved 10% stabilization policy and future program growth.
• District recognized $37.8 million in one-time COVID-19 relief and special education revenues from the State and Federal government during the 2021-2022 fiscal year.

CAPITAL ASSET AND DEBT ADMINISTRATION

Capital Assets

By June 30, 2022, the District had invested $950.7 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 $1.9 million or 0.20% over last year. Total depreciation and amortization expenses for the year was $31.3 million.

13

Clovis Unified School District Management’s Discussion and Analysis June 30, 2022

Table A-5

Governmental Activities
2021
	2022	       	as Restated	

Land and construction in progress Buildings and improvements Equipment
Leased assets

Total

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

$ 950,715,050

$ 110,349,294 797,850,068 36,177,123
	4,468,182 

$ 948,844,667

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

The District received $10.8 million state facility revenue for projects completed several years ago. The District was able to proceed with planned modernizations due to the receipt of these funds.

Long-Term Liabilities

At year-end the District had $1.3 billion in long-term liabilities outstanding discussed below. This is a decrease of 19.0% from last year largely due to a reduction in the District’s proportionate share of the net pension liability, as shown in Table A-6.

Table A-6

Governmental Activities
2021
	2022	       	as Restated	

Long-Term Liabilities General obligation bonds
Certificates of participation Unamortized premiums/(discounts) Financed purchases
Leases
Compensated absences Claims liability
Total OPEB liability
Aggregate net pension liability

Total

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

$ 1,269,825,744

$     477,575,863 2,420,000 9,321,185 12,660,179 4,640,000 4,185,913 28,136,235 495,131,989
	532,447,833 

$ 1,566,519,197

14

Clovis Unified School District Management’s Discussion and Analysis June 30, 2022

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

At year-end, the District has a net pension liability of $283.1 million versus $532.4 million last year, a decrease of $249.3 million, or 46.8%. The District also reported Deferred Outflows (asset) from pension activities of
$97.9 million, and Deferred Inflows (liability) from pension activities of $203.7 million. The net impact on the District’s net position of these pension related items is $(389.0) million.

At year-end, the District has an other postemployment benefits liability of $369.7 million versus $495.1 million last year, a decrease of $125.4 million, or 25.3%. The District also reported Deferred Outflows (asset) from pension activities of $91.2 million, and Deferred Inflows (liability) from pension activities of $126.3 million. The net impact on the District’s net position of these pension related items is $(404.8) million.

FACTORS BEARING ON THE DISTRICT’S FUTURE

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

• The COVID-19 pandemic has posed economic challenges as it relates to school funding. The District will continue to monitor and utilize the resources available to ensure financial solvency. Clovis Unified remains prepared to continue to provide high quality service to our students. The District closed the year with a 19.8% General Reserve.
• The State’s Local Control Funding Formula (LCFF) accounts for 78% of the District’s General Fund revenues during a normal year. Due to the amount of one-time revenues received during the 2021-2022 fiscal year, the LCFF accounted for 72%.
• The LCFF attempts to fund students based on their needs related to household income, English language learner, homeless or foster youth. This portion of a district’s student population is referred to as the unduplicated pupil percentage (UPP). The District’s UPP averages 45-49%, making the District eligible for the LCFF Base and Supplemental Grants only; the District is not eligible for the Concentration Grant. The District receives the least amount of funding per ADA in Fresno County due to its low UPP.
• Enrollment growth and student attendance is key to the District’s financial projections. The District has consistently seen growth over the years and anticipated this trend to continue pre-pandemic. There is a significant amount of residential development within District boundaries and the District anticipates the declining enrollment experienced during the pandemic to be short lived. Enrollment growth continues to be projected conservatively on the multi-year projection.
• The Clovis Unified population of students with disabilities has grown an average of 3.0% annually over the previous five years.
• The state and federal government have never fully funded special education. The District is actively involved in advocating for increased funding from the State and Federal Governments.

15

Clovis Unified School District Management’s Discussion and Analysis June 30, 2022

CONTACTING THE DISTRICT’S FINANCIAL MANAGEMENT

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

16

Clovis Unified School District Statement of Net Position
June 30, 2022

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

Total assets

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

Total deferred outflows of resources

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

Total liabilities

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

Total deferred inflows of resources

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

Governmental
	Activities	

$ 576,226,576 38,316,382 1,118,000 2,551,933 141,686,748 804,857,999
	4,170,303 

	1,568,927,941 

11,252,536 91,254,686
	97,905,269 

	200,412,491 

51,418,870 4,615,824

43,606,547 573,344,288 369,724,083
	283,150,826 

	1,325,860,438 

201,953 126,294,235
	203,740,917 

	330,237,105 

632,835,455

52,444,163 96,088,016 37,327,145 32,872,285 10,766,601 3,478,946
	(752,569,722) 

Total net position	$ 113,242,889

See Notes to Financial Statements	17

Clovis Unified School District Statement of Activities
Year Ended June 30, 2022

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

Governmental Activities
Instruction	$ 319,166,771	$	20,571	$ 70,409,194	$10,772,957	$ (237,964,049) Instruction-related activities
Supervision of instruction	30,067,286	-	21,060,500	-	(9,006,786) Instructional library, media,
and technology                                  18,917,914                              -              7,483,111                             -              (11,434,803) School site administration                     33,252,224                              -              1,045,429                             -              (32,206,795)
Pupil services
Home-to-school transportation	14,040,815	-	930,443	-	(13,110,372) Food services	16,238,310                278,416            21,193,662	-                 5,233,768 All other pupil services	47,511,725                   29,691              7,819,360	-	(39,662,674)
Administration
Data processing                                          6,208,066                              -              1,182,554                             -                (5,025,512) All other administration                         22,743,359                     7,419              5,023,533                             -              (17,712,407)
Plant services	67,568,942	5,072,480	6,669,441	-	(55,827,021) Ancillary services	16,933,093                              -	6,742,955	-	(10,190,138) Community services                                            721,865                              -                               -	-                   (721,865) Enterprise services                                                  (9,102)                             -                               -	-                          9,102 Interest on long-term liabilities	24,586,140                              -                               -	-	(24,586,140)
Other outgo	           1,464,203  	18,287,940  	(2,686,474)  	-  	14,137,263 

Total governmental
activities	 $ 619,411,611   $ 23,696,517   $146,873,708   $10,772,957  	(438,068,429) 

General Revenues and Subventions
Property taxes, levied for general purposes Property taxes, levied for debt service
Federal and State aid not restricted to specific purposes Interest and investment earnings
Interagency revenues
Miscellaneous and unspent state entitlements revenues

Subtotal, general revenues and subventions

Change in Net Position

Net Position - Beginning, as Restated

Net Position - Ending

See Notes to Financial Statements

89,896,205 49,854,419 332,749,423
(10,441,563) 1,481,650
	45,169,933 

	508,710,067 

70,641,638

	42,601,251 

 $ 113,242,889 

18

Clovis Unified School District Balance Sheet – Governmental Funds June 30, 2022

General
	Fund	

Cafeteria
	Fund	

Building
	Fund	

Special Reserve Fund for Capital
 Outlay Projects 

Non-Major Governmental
	Funds	

Total Governmental
	Funds	

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

$ 179,960,828 31,642,670 1,500,000 475,000
	1,875,705 

$ 14,125,328 2,874,896
--
	629,930 

$ 31,837,610 ---
	- 

$ 117,734,664 -
3,427,511 -
	- 

$ 169,819,584 1,751,300 2,521,650 643,000
	46,298 

$ 513,478,014 36,268,866 7,449,161 1,118,000
	2,551,933 

Total assets	$ 215,454,203	$ 17,630,154	$ 31,837,610	$ 121,162,175	$ 174,781,832	$ 560,865,974

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

$ 44,393,413 401,186
	4,615,824 

	49,410,423 

2,494,705 29,562,555 77,704,193 -
	56,282,327 

	166,043,780 

$          556,510 5,677,113
	- 

	6,233,623 

629,930 10,766,601 -
-
	- 

	11,396,531 

$          352,896 -
	- 

	352,896 

-31,484,714 -
-
	- 

	31,484,714 

$          276,826 -
	- 

	276,826 

-120,885,349 -
-
	- 

	120,885,349 

$      1,656,034 1,361,618
	- 

	3,017,652 

692,798 159,775,715 3,239,250 8,056,417
	- 

	171,764,180 

$ 47,235,679 7,439,917
	4,615,824 

	59,291,420 

3,817,433 352,474,934 80,943,443 8,056,417
	56,282,327 

	501,574,554 

Total liabilities and
fund balances	$ 215,454,203	$ 17,630,154	$ 31,837,610	$ 121,162,175	$ 174,781,832	$ 560,865,974

See Notes to Financial Statements	19

Clovis Unified School District Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position
June 30, 2022

Total Fund Balance - Governmental Funds	$ 501,574,554

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

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

Net right-to-use leased assets

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

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

Total deferred outflows of resources to pensions

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

$1,430,509,086
	(483,964,339) 

4,915,000
	(744,697) 

11,252,536 91,254,686
	97,905,269 

(201,953) (126,294,235)
	(203,740,917) 

946,544,747

4,170,303

32,872,285

200,412,491

Total deferred inflows of resources to pensions

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

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

See Notes to Financial Statements

(330,237,105)

(283,150,826)

(369,724,083)

20

Clovis Unified School District Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position
June 30, 2022

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

Total long-term liabilities

(357,256,657) (100,495,000) (13,277,508) (4,430,000) (3,189,394) (5,841,076)

	(104,729,842) 

	(589,219,477) 

Total net position - governmental activities

See Notes to Financial Statements

$ 113,242,889

21

Clovis Unified School District Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds
Year Ended June 30, 2022

General Fund

Cafeteria Fund

Building Fund

Special Reserve Fund for Capital Outlay Projects

Non-Major Governmental Funds

Total Governmental Funds

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

$ 412,458,240 50,362,089 96,166,964 11,266,463

$                        -20,478,754 1,393,673 123,354

$	-	$ -
-(1,335,923)

---
(57,699)

$       8,229,407 1,229,047 26,850,171 82,649,526

$ 420,687,647 72,069,890 124,410,808 92,645,721

Total revenues

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

Total expenditures

570,253,756

312,778,151

29,438,861

18,974,152 31,073,732

14,318,952 280,000 48,254,718

6,342,832 19,554,003 61,448,349 8,551,776 1,464,203 3,251,502

830,671 -
76,055

556,637,957

21,995,781

-

-

--

-16,096,606 -

-421,395 -
--
22,200

---

16,540,201

(1,335,923)

-

-

--

---

--
487,838 --
23,331,352

745,000 -122,567

24,686,757

(57,699)

-

-

--

---

--
325,441 --
845,410

--
2,531,882

3,702,733

118,958,151

17,929,927

2,421,009

182,582 2,443,869

--
1,185,436

-794,536
4,864,035 5,526,081 -5,675,321

41,063,613 763,387 10,122,049

92,971,845

709,814,066

330,708,078

31,859,870

19,156,734 33,517,601

14,318,952 16,376,606 49,440,154

6,342,832 20,769,934 67,125,663 14,077,857 1,464,203 33,125,785

42,639,284 763,387 12,852,553

694,539,493

See Notes to Financial Statements	22

Clovis Unified School District Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds
Year Ended June 30, 2022

Excess (Deficiency) of Revenues Over Expenditures

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

Net Financing Sources (Uses) Net Change in Fund Balances
Fund Balance - Beginning

General
	Fund	

13,615,799

336,000 -
1,700,000

-

---
(12,950,750)

(10,914,750) 2,701,049
	163,342,731 

Cafeteria
	Fund	

5,455,580

---

-

----

	- 

5,455,580

	5,940,951 

Building
	Fund	

(26,022,680)

6,358,433 9
-

-

----

	6,358,442 

(19,664,238)

	51,148,952 

Special Reserve Fund for Capital
 Outlay Projects 

(3,760,432)

6,729,573 --

102,535,000 ---

	109,264,573 

105,504,141

	15,381,208 

Non-Major Governmental
	Funds	

25,986,306

3,987,264 1,091
--
129,335,000

-(129,679,411)
1,107,798 (5,060,520)

	(308,778) 

25,677,528

	146,086,652 

Total Governmental
	Funds	

	15,274,573 

17,411,270 1,100 1,700,000

129,335,000

102,535,000 (129,679,411)
1,107,798
	(18,011,270) 

	104,399,487 

119,674,060

	381,900,494 

Fund Balance - Ending	$ 166,043,780	$ 11,396,531	$ 31,484,714	$ 120,885,349	$ 171,764,180	$ 501,574,554

See Notes to Financial Statements	23

Clovis Unified School District Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental
Funds to the Statement of Activities Year Ended June 30, 2022

Total Net Change in Fund Balances - Governmental Funds	$ 119,674,060

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

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

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

Net expense adjustment

$ (31,317,523)
	33,187,906 

1,870,383

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

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

In the Statement of Activities, certain operating expenses, such as compensated absences (vacations) are measured by the amounts earned during the year. In the governmental funds, however, expenditures for these items are measured by the amount of financial resources used (essentially, the amounts actually paid). This amount is the difference between vacation earned and used.

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

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

See Notes to Financial Statements

(9,631,907)

(1,700,000)

996,519

33,422,776

(15,853,414)

24

Clovis Unified School District Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental
Funds to the Statement of Activities Year Ended June 30, 2022

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

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

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

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

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

(231,870,000)

11,207,130

(1,107,798) 1,707,179 3,359,615
(478,887) (3,213,577)

154,556,271 4,460,000 1,082,671 210,000

	1,950,617 

Change in net position of governmental activities	$ 70,641,638

See Notes to Financial Statements	25

Clovis Unified School District Statement of Net Position – Proprietary Funds June 30, 2022

Internal
	Service	
Self Insurance
	Fund	

Assets
Current assets
Deposits and investments Receivables
Due from other funds

Total assets

Liabilities

Current liabilities Accounts payable Due to other funds

Total current liabilities

Noncurrent liabilities Claims liabilities

Total liabilities

Net Position
Restricted for claims

$ 62,748,562 2,047,516
	69,673 

	64,865,751 

4,183,191

	78,917 

	4,262,108 

	27,731,358 

	31,993,466 

	32,872,285 

Total net position	$ 32,872,285

See Notes to Financial Statements	26

Clovis Unified School District Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds
Year Ended June 30, 2022

Internal
	Service	
Self Insurance
	Fund	

Operating Revenues Charges for services

Operating Expenses Payroll costs
Supplies and materials
Claim payments and adjustments

Total operating expenses

Operating Income

Nonoperating Revenues Investment earnings (losses) Interest income

Total nonoperating revenues

Income before capital contributions and transfers

Transfers in

Change in Net Position

Total Net Position - Beginning

 $ 84,643,856 

307,906 706,588
	79,172,638 

	80,187,132 

	4,456,724 

(3,189,288)
	83,181 

	(3,106,107) 

	1,350,617 

	600,000 

1,950,617

	30,921,668 

Total Net Position - Ending	$ 32,872,285

See Notes to Financial Statements	27

Clovis Unified School District Statement of Cash Flows – Proprietary Funds Year Ended June 30, 2022

Internal
	Service	
Self Insurance
	Fund	

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

Net Cash From Operating Activities

Noncapital Financing Activities Investment earnings (losses)

Capital and Related Financing Activities Capital contributions

Investing Activities
Interest on investments

Net Change in Cash and Cash Equivalents

Cash and Cash Equivalents, Beginning

$          3,931,124 83,305,822
(706,588) (1,429,747) (78,049,999)
	(1,400) 

	7,049,212 

	(3,189,288) 

	600,000 

	83,181 

4,543,105

	58,205,457 

Cash and Cash Equivalents, Ending	$	62,748,562

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

$	4,456,724

(995,428) 78,917
2,988,518 925,358
	(404,877) 

Net Cash From Operating Activities	$	7,049,212

See Notes to Financial Statements	28

Clovis Unified School District Notes to Financial Statements
June 30, 2022

Note 1 -	Summary of Significant Accounting Policies

Financial Reporting Entity

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

A reporting entity is comprised of the primary government and other organizations that are included to ensure the financial statements are not misleading. The primary government of the District consists of all funds, departments, boards, and agencies that are not legally separate from the District. For Clovis Unified School District, this includes general operations, food service, and student related activities of the District. The District has also approved a charter for Clovis Online Charter School pursuant to Education Code Section 47605. The Clovis Online Charter School is operated by the District, and its financial activities are presented in the Charter School Fund.

Basis of Presentation - Fund Accounting

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

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

Major Governmental Funds

General Fund The General Fund is the chief operating fund for all districts. It is used to account for the ordinary operations of the District. All transactions except those accounted for in another fund are accounted for in this fund. Due to GASB 84, the District has consolidated the Warrant Pass-Through Fund, for financial reporting purposes, while keeping the funds and related activities separate for internal reporting purposes. As a result, the General Fund reflects an increase in assets and liabilities of $945,829.

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).

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Clovis Unified School District Notes to Financial Statements
June 30, 2022

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.

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

Non-Major Governmental Funds

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

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

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

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

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

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

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

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

30

Clovis Unified School District Notes to Financial Statements
June 30, 2022

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

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

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

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

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

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

Basis of Accounting - Measurement Focus

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

The government-wide statement of activities presents a comparison between expenses, both direct and indirect, and for each governmental function, and exclude fiduciary activity. Direct expenses are those that are specifically associated with a service, program, or department and are therefore, clearly identifiable to a particular function. The District does not allocate indirect expenses to functions in the Statement of Activities, except for depreciation and amortization of leased assets. 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

31

Clovis Unified School District Notes to Financial Statements
June 30, 2022

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 governmental funds are aggregated and presented in a single column. The internal service fund is presented in a single column on the face of the proprietary fund statements.

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

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

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

32

Clovis Unified School District Notes to Financial Statements
June 30, 2022

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

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

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

Cash and Cash Equivalents

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

Investments

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

Prepaid Expenditures (Expenses)

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

Stores Inventories

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

33

Clovis Unified School District Notes to Financial Statements
June 30, 2022

Capital Assets and Depreciation

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

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

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

The District records impairments of capital assets when it becomes probable that the carrying value of the assets will not be fully recovered over their estimated useful life. Impairments are recorded to reduce the carrying value of the assets to their net realizable value based on facts and circumstances in existence at the time of the determination. No impairments were recorded during the year ended June 30, 2022.

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

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

34

Clovis Unified School District Notes to Financial Statements
June 30, 2022

for each day of unused sick leave. Credit for unused sick leave is applicable to all certificated employees and is determined by dividing the number of unused sick days by the number of base service days required to complete the last school year, if employed full-time.

Accrued Liabilities and Long-Term Liabilities

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

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

Deferred Outflows/Inflows of Resources

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

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

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

Pensions

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

35

Clovis Unified School District Notes to Financial Statements
June 30, 2022

Postemployment Benefits Other than Pensions (OPEB)

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

Leases

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

Fund Balances - Governmental Funds

As of June 30, 2022, 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.

36

Clovis Unified School District Notes to Financial Statements
June 30, 2022

Spending Order Policy

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

Minimum Fund Balance Policy

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

Net Position

Net position represents the difference between assets and deferred outflows of resources, and liabilities and deferred inflows of resources. Net position net of investment in capital assets consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowings used for the acquisition, construction, or improvement of those assets. Net position is reported as restricted when there are limitations imposed on their use either through the enabling legislation adopted by the District or through external restrictions imposed by creditors, grantors, or laws or regulations of other governments. The District first applies restricted resources when an expense is incurred for purposes for which both restricted and unrestricted net position is available. The government-wide financial statements report $232,977,156 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.

37

Clovis Unified School District Notes to Financial Statements
June 30, 2022

Estimates

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

Property Tax

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

Change in Accounting Principles

Implementation of GASB Statement No. 87

As of July 1, 2021, the District adopted GASB Statement No. 87, Leases. The implementation of this standard establishes a single model for lease accounting based on the foundational principle that leases are financings of the right-to-use an underlying asset. The standard requires 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. The effect of the implementation of this standard on beginning net position is disclosed in Note 16 and the additional disclosures required by this standard is included in Notes 4 and 9.

Implementation of GASB Statement No. 92

In January 2020, the GASB issued Statement No. 92, Omnibus 2020. The objectives of this statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing practice issues that have been identified during implementation and application of certain GASB Statements. This Statement addresses a variety of topics and includes specific provisions about the following:

• The effective date of Statement No. 87, Leases, and Implementation Guide No. 2019-3, Leases, for interim financial reporting
• Reporting of intra-entity transfers of assets between a primary government employer and a component unit defined benefit pension plan or defined benefit other postemployment benefit (OPEB) plan
• The applicability of Statement 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 67 and 68, as amended, and No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, as amended, to reporting assets accumulated for postemployment benefits
• The applicability of certain requirements of Statement No. 84, Fiduciary Activities, to postemployment benefit arrangements
• Measurement of liabilities (and assets, if any) related to asset retirement obligations (AROs) in a government acquisition

38

Clovis Unified School District Notes to Financial Statements
June 30, 2022

• Reporting by public entity risk pools for amounts that are recoverable from reinsurers or excess insurers • Reference to nonrecurring fair value measurements of assets or liabilities in authoritative literature
• Terminology used to refer to derivative instruments

The requirements of this Statement are effective as follows:

• The requirements related to the effective date of Statement 87 and Implementation Guide 2019-3, reinsurance recoveries, and terminology used to refer to derivative instruments are effective upon issuance.
• The requirements related to intra-entity transfers of assets and those related to the applicability of Statements 73 and 74 are effective for fiscal years beginning after June 15, 2021.
• The requirements related to application of Statement 84 to postemployment benefit arrangements and those related to nonrecurring fair value measurements of assets or liabilities are effective for reporting periods beginning after June 15, 2021.
• The requirements related to the measurement of liabilities (and assets, if any) associated with AROs in a government acquisition are effective for government acquisitions occurring in reporting periods beginning after June 15, 2021.

The provisions of this Statement have been implemented as of June 30, 2022.

Implementation of GASB Statement No. 93

In March 2020, the GASB issued Statement No. 93, Replacement of Interbank Offered Rates. The objective of this Statement is to address those and other accounting and financial reporting implications that result from the replacement of an IBOR (Interbank Offered Rate). This Statement achieves that objective by:

• Providing exceptions for certain hedging derivative instruments to the hedge accounting termination provisions when an IBOR is replaced as the reference rate of the hedging derivative instrument’s variable payment
• Clarifying the hedge accounting termination provisions when a hedged item is amended to replace the reference rate
• Clarifying that the uncertainty related to the continued availability of IBORs does not, by itself, affect the assessment of whether the occurrence of a hedged expected transaction is probable
• Removing LIBOR as an appropriate benchmark interest rate for the qualitative evaluation of the effectiveness of an interest rate swap
• Identifying a Secured Overnight Financing Rate and the Effective Federal Funds Rate as appropriate benchmark interest rates for the qualitative evaluation of the effectiveness of an interest rate swap
• Clarifying the definition of reference rate, as it is used in Statement 53, as amended
• Providing an exception to the lease modifications guidance in Statement 87, as amended, for certain lease contracts that are amended solely to replace an IBOR as the rate upon which variable payments depend.

The provisions of this Statement have been implemented as of June 30, 2022.

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Clovis Unified School District Notes to Financial Statements
June 30, 2022

Note 2 -	Deposits and Investments

Summary of Deposits and Investments

Deposits and investments as of June 30, 2022, are classified in the accompanying financial statements as follows:

Governmental funds Proprietary funds

Total deposits and investments

$ 513,478,014
	62,748,562 

$ 576,226,576

Deposits and investments as of June 30, 2022, consist of the following:

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

Total deposits and investments

$      2,320,086 15,022,340 115,240,728 147,500
	443,495,922 

$ 576,226,576

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.

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Clovis Unified School District Notes to Financial Statements
June 30, 2022

General Authorizations

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

Authorized Investment Type

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

Maximum Remaining
	Maturity	

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

Maximum Percentage
	of Portfolio	

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

Maximum Investment
 in One Issuer 

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

Interest Rate Risk

Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The District has a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. The District manages its exposure to interest rate risk by investing in the County Pool which purchases a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. The District maintains an investment of $443,495,922 in the Fresno County Treasury Investment Pool that has an average weighted maturity of 846 days.

Credit Risk

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

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Clovis Unified School District Notes to Financial Statements
June 30, 2022

Custodial Credit Risk - Deposits

This is the risk that in the event of a bank failure, the District’s deposits may not be returned to it. The District does not have a policy for custodial credit risk for deposits. However, the California Government Code requires that a financial institution secure deposits made by State or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agency. California law also allows financial institutions to secure public deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits and letters of credit issued by the Federal Home Loan Bank of San Francisco having a value of 105% of the secured deposits. As of June 30, 2022, $128,517,715 of the District's bank balance was exposed to custodial credit risk because it was uninsured and collateralized with securities held by the pledging financial institution’s trust department or agent, but not in the name of the District.

Note 3 -	Receivables

Receivables at June 30, 2022, consisted of intergovernmental grants, entitlements, interest and other local sources. All receivables are considered collectible in full.

Non-Major	Total	Internal	Total General	Cafeteria	Governmental Governmental          Service          Governmental
	Fund	 	Fund	 	Funds	 	Funds	 	Fund	 	Activities	

Federal Government
Categorical aid	$21,478,683	$ 2,705,120	$	233,861	$24,417,664	$	-	$24,417,664 State Government
LCFF apportionment	6,970	-	-	6,970	-	6,970 State grants and
entitlements	5,831,273	166,331	1,318,875	7,316,479	-	7,316,479
Local Sources	        4,325,744  	3,445  	198,564  	4,527,753  	2,047,516  	6,575,269 

Total	$31,642,670	$ 2,874,896	$ 1,751,300	$36,268,866	$ 2,047,516	$38,316,382

42

Clovis Unified School District Notes to Financial Statements
June 30, 2022

Note 4 -	Capital Assets

Capital asset activity for the fiscal year ended June 30, 2022, was as follows:

Governmental Activities
Capital assets not being depreciated Land
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

Total capital assets

Accumulated depreciation Land improvements
Buildings and improvements Furniture and equipment

Total accumulated depreciation

Net depreciable capital assets

Balance
July 1, 2021	Balance
	as Restated	 	Additions	 	Deductions	      June 30, 2022 

$ 103,444,421	$	-	$	-	$ 103,444,421
	6,904,873  	32,995,757  	(1,658,303)  	38,242,327 

	110,349,294  	32,995,757  	(1,658,303)  	141,686,748 

130,037,166                  187,512                                -             130,224,678 1,073,060,049                  546,053                                -         1,073,606,102
	83,874,671  	1,116,887  	(2,113,079)  	82,878,479 

	1,286,971,886  	1,850,452  	(2,113,079)  	1,286,709,259 

	1,397,321,180  	34,846,209  	(3,771,382)  	1,428,396,007 

(91,478,991)            (3,885,754)                               -              (95,364,745) (313,768,156)          (22,783,753)                               -           (336,551,909)
	(47,697,548)  	(4,350,137)  	2,113,079  	(49,934,606) 

	(452,944,695)  	(31,019,644)  	2,113,079  	(481,851,260) 

	834,027,191  	(29,169,192)  	-  	804,857,999 

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

Accumulated amortization Buildings and improvements

Net right-to-use leased assets

	(446,818)  	(297,879)  	-  	(744,697) 

	4,468,182  	(297,879)  	-  	4,170,303 

Governmental activities capital assets and right-
to-use leased assets, net	$ 948,844,667	$	3,528,686	$	(1,658,303)	$ 950,715,050

43

Clovis Unified School District Notes to Financial Statements
June 30, 2022

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

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

$ 18,348,156 2,044,639 297,879 3,047,333 3,016,295 721,865 2,256,164
	1,585,192 

Total depreciation and amortization expenses - governmental activities	$ 31,317,523

Note 5 -	Interfund Transactions

Interfund Receivables/Payables (Due To/Due From)

Interfund receivable and payable balances arise from interfund transactions and are recorded by all funds affected in the period in which transactions are executed. Interfund receivable and payable balances at June 30, 2022, between major and non-major governmental funds, and internal service fund are as follows:

	Funds	

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

Due from
	Other Funds 

$      1,500,000 -

3,427,511

1,318,246 49,538
-25,000
1,128,866 -

	69,673 

Due to
	Other Funds 

$          401,186 5,677,113

-

315,384 -911,410 -
-134,824

	78,917 

Total	$	7,518,834	$	7,518,834

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

44

Clovis Unified School District Notes to Financial Statements
June 30, 2022

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, 2022, 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 from the restricted maintenance account for construction projects.
The General Fund transferred to the Special Reserve Fund for Capital Outlay Projects for construction project costs.
The General Fund transferred to the Special Reserve Fund for Capital Outlay Projects for a one-time furniture refresh.
The General Fund transferred to the Adult Education Non-Major Governmental Fund for the District's Adult Education contribution.
The General Fund transferred to the Internal Service - Self Insurance Fund for additional employer contribution to the health fund.
The Charter School Non-Major Governmental Fund transferred to the Capital Facilities Non-Major Governmental Fund for the portables construction project.
The Deferred Maintenance Non-Major Governmental Fund transferred to the Building Fund for the Clovis West High School modernization project.
The Capital Facilities Non-Major Governmental Fund transferred to the General Fund for the three percent administrative fee.
The Capital Facilities Non-Major Governmental Fund transferred to the Building Fund as a contribution towards construction project costs.
The County School Facilities Non-Major Governmental Fund transferred to the Special Reserve Fund for Capital Outlay Projects for capital project costs.
The Bond Interest and Redemption Fund transferred to the General Fund the funds remaining from fully matured bond issuances to close out the related bond
sub-accounts.
The Other Debt Service Non-Major Governmental Fund transferred to the Building Fund for cafeteria tables.

Total

$       2,825,000 856,887

1,500,000

6,121,983

200,000

846,880

600,000

315,384

1,000,000

336,000

3,000,000

407,591

594

	951 

 $ 18,011,270 

45

Clovis Unified School District Notes to Financial Statements
June 30, 2022

Note 6 -	Accounts Payable

Accounts payable at June 30, 2022, consisted of the following:

General
	Fund	

Cafeteria
	Fund	

Building
	Fund	

Special Reserve Fund for Capital
 Outlay Projects 

Vendor payables LCFF apportionment Deferred payroll Other

$      9,141,789 4,103,328 30,209,280
	939,016 

$	556,510 --
	- 

$	352,896 --
	- 

$	276,826 --
	- 

Total	$ 44,393,413	$	556,510	$	352,896	$	276,826

Non-Major Governmental
	Funds	

Total Governmental
	Funds	

Internal Service
	Fund	

Total Governmental
	Activities	

Vendor payables LCFF apportionment Deferred payroll Other

$	1,656,034 --
	- 

$ 11,984,055 4,103,328 30,209,280
	939,016 

$	4,183,191 --
	- 

$ 16,167,246 4,103,328 30,209,280
	939,016 

Total	$	1,656,034	$ 47,235,679	$	4,183,191	$ 51,418,870

Note 7 -	Unearned Revenue

Unearned revenue at June 30, 2022, consists of the following:

General
	Fund	

Federal financial assistance State categorical aid

$	36,639
	4,579,185 

Total	$	4,615,824

Note 8 -	Note Participations

The District issued $34,260,000 of Fiscal Year 2020-2021 Note Participations, Series E dated March 23, 2021, through the California Education Notes Program. The notes matured on December 30, 2021 with an interest rate of 0.25%. The notes were sold to provide operating cash for the District's working capital expenditures and the investment and reinvestment of funds for the District prior to the receipt of anticipated tax payments and other revenues for Fiscal Years 2020-2021 and 2021-2022. Each note is secured by a pledge of certain unrestricted

46

Clovis Unified School District Notes to Financial Statements
June 30, 2022

revenues received by the District and each note shall constitute a first lien and charge thereon and shall be payable from the first moneys received by the District from pledged revenues. Each note shall be paid from any moneys lawfully available. Repayment terms stipulate that 100% of principal and interest are due on the account to a designated fiscal agent by the November 30, 2021 (50% of principal on September 30, 2021, 50% of principal on November 30, 2021, and 100% of the interest on November 30, 2021). As of June 30, 2022, the District had no outstanding Note Participations.

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

Outstanding	Outstanding
	Issue Date	 	Rate	  Maturity Date   July 1, 2021  	Additions	 	Payments	  June 30, 2022 

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

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

Summary

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

Balance
July 1, 2021	Balance	Due in
	as Restated	 	Additions	 	Deductions	  June 30, 2022  	One Year	

Long-Term Liabilities
General obligation bonds	$ 477,575,863	$ 138,966,907	$ (154,556,271)	$ 461,986,499	$ 40,180,000 Certificates of participation               2,420,000          102,535,000               (4,460,000)          100,495,000            2,745,000 Unamortized debt premiums            9,815,040               1,107,798               (3,359,615)              7,563,223                             -Unamortized debt discounts               (493,855)            (1,707,179)                   478,887              (1,722,147)                            -Financed purchases                          12,660,179               1,700,000               (1,082,671)            13,277,508                461,547 Leases                                                    4,640,000                                -                   (210,000)              4,430,000                220,000 Compensated absences                     4,185,913                                -                   (996,519)              3,189,394                             -
Claims liability	         28,136,235  	589,896  	(994,773)  	27,731,358  	- 

Total	$ 538,939,375	$ 243,192,422	$ (165,180,962)	$ 616,950,835	$ 43,606,547

The General Obligation Bonds are paid by the Bond Interest and Redemption Fund with local tax revenue. The Certificates of Participation are paid by the Building Fund and the Capital Facilities Fund. The premiums and discounts will be amortized over the life of the related debt. Payments on the financed purchases, leases and child development portables are made from General Fund, Building Fund, and Child Development Fund. Payments on compensated absences are made from the fund which the related employee worked. The District is self-insured for the claims liability which is funded through the District’s Self Insurance Fund.

47

Clovis Unified School District Notes to Financial Statements
June 30, 2022

General Obligation Bonds

The outstanding general obligation bonded debt is as follows:

Fiscal Year Issued

Fiscal Year of Final
Series	Maturity

Interest Rate

Original Issue

Bonds Outstanding
July 1, 2021	Issued

Interest Accreted

Bonds Outstanding
Redeemed	June 30, 2022

Due in One Year

2003	01B	2028 Accreted interest on bonds
2005	04A	2030 Accreted interest on bonds
2006	04B	2031 Accreted interest on bonds
2012	12R	2022 2013	12A	2038 2014	12B	2024
Accreted interest on bonds 2015	12C	2035
Accreted interest on bonds 2016	12D	2041
Accreted interest on bonds 2017	16R	2022 2017	17R	2036
Accreted interest on bonds 2018	18R	2023 2020	19R	2038 2021	21R	2022 2021	20A	2046 2022	21R	2040 2022	22R	2032

Total

3.6-5.23%	$ 29,000,256

3.8-6.15%	119,998,286

4.0-5.0%	48,001,060

2.0-5.0%            17,935,000 1.0-5.5%            79,996,801 2.0-6.12%           49,996,579

3.19-4.52%	64,995,505

3.37-5.0%	103,007,034

2.0-5.0%            30,510,000 3.18-5.0%           43,121,677

2.694-4.357%       20,710,000 1.786-3.257%       23,630,000 0.200%             19,875,000 2.0-4.0%            50,000,000 0.286-3.067%     125,145,000 5.00%                 4,190,000

$ 10,367,941 16,680,926 43,200,940 61,742,291 13,847,060 14,924,725 4,555,000 11,815,000 1,988,532 1,157,136 55,170,504 3,615,523 85,247,034 4,111,267 2,550,000 39,071,677 2,245,307 17,050,000 18,360,000 19,875,000 50,000,000
--

$477,575,863

$	---------------------
125,145,000 4,190,000

$129,335,000

$                    -1,251,133
-5,759,027 -1,352,642 -
--
129,024 -279,922 -215,985 -
-644,174 -
-----

$ 9,631,907

$      (1,253,903) (1,921,097)
----
(4,555,000) (8,300,000) (610,025) (354,975) (42,681,069) (2,775,916) (47,882,034) (4,327,252) (2,550,000) (255,000)
-(17,050,000)
(165,000) (19,875,000)
---

$(154,556,271)

$      9,114,038 16,010,962 43,200,940 67,501,318 13,847,060 16,277,367
-3,515,000 1,378,507 931,185
12,489,435 1,119,529 37,365,000 -
-38,816,677 2,889,481 -18,195,000 -50,000,000
125,145,000 4,190,000

$461,986,499

$ 1,117,405 1,907,595 5,708,333 8,256,667
---
3,515,000 --
1,305,000 -1,325,000 -
----
165,000 -
10,810,000 6,070,000 -

$40,180,000

Debt Service Requirements to Maturity

The capital appreciation bonds mature as follows:

Bonds Maturing
	Fiscal Year	

2023 2024 2025 2026 2027
2028-2032 2033-2036

Initial
	Bond Value	

$      7,494,210 8,699,258 8,052,673 8,064,656 8,544,039 30,395,144
	15,671,677 

Accreted
	Interest	

$ 10,615,790 11,201,820 10,833,575 10,914,140 12,729,577 45,545,459
	2,889,481 

Accreted
	Obligation	

$ 18,110,000 19,901,078 18,886,248 18,978,796 21,273,616 75,940,603
	18,561,158 

Unaccreted
	Interest	

$                       -1,023,922 1,993,752 3,111,204 4,886,384 29,759,397
	9,348,842 

Maturity
	Value	

$ 18,110,000 20,925,000 20,880,000 22,090,000 26,160,000 105,700,000
	27,910,000 

Total	$ 86,921,657	$ 104,729,842	$ 191,651,499	$ 50,123,501	$ 241,775,000

48

Clovis Unified School District Notes to Financial Statements
June 30, 2022

The current interest bonds mature as follows:

	Fiscal Year	

2023 2024 2025 2026 2027
2028-2032 2033-2037 2038-2042 2043-2046

Total

	Principal	

$ 23,190,000 1,760,000 1,450,000 1,585,000 5,005,000 38,755,000 67,675,000 115,495,000
	15,420,000 

$ 270,335,000

Interest to
	Maturity	

$      8,131,020 7,868,454 7,793,259 7,722,331 7,600,586 35,532,997 26,160,625 10,720,443
	720,562 

$ 112,250,277

	Total	

$ 31,321,020 9,628,454 9,243,259 9,307,331 12,605,586 74,287,997 93,835,625 126,215,443
	16,140,562 

$ 382,585,277

Certificates of Participation

2011 Certificates of Participation

In January 2011, the Central Valley Support Services JPA issued 2011 Certificates of Participation and entered into a lease agreement to fund the debt with the District in the amount of $4,450,000 with interest rates ranging from 2.00% to 4.50%. As of June 30, 2022, the principal balance outstanding was $1,675,000.

2021 Certificates of Participation

In October 2011, the Central Valley Support Services JPA issued 2021 Certificates of Participation and entered into a lease agreement to fund the debt with the District in the amount of $102,535,000 with interest rates ranging from 0.435% to 3.100%. As of June 30, 2022, the principal balance outstanding was $98,820,000.

Debt Service Requirements to Maturity

Year Ending
	June 30,	

2023 2024 2025 2026
2027
2028-2032
2033-2037 2038-2042 2043-2047 2048-2051

	Principal	

$      2,745,000 2,775,000 2,950,000 2,980,000 2,520,000 13,390,000 15,205,000 17,740,000 20,830,000
	19,360,000 

	Interest	

$      2,943,826 2,911,497 2,864,866 2,803,261 2,751,061 12,965,009 11,146,911 8,613,901 5,521,038
	1,715,390 

	Total	

$      5,688,826 5,686,497 5,814,866 5,783,261 5,271,061 26,355,009 26,351,911 26,353,901 26,351,038
	21,075,390 

Total	$ 100,495,000	$ 54,236,760	$ 154,731,760

49

Clovis Unified School District Notes to Financial Statements
June 30, 2022

Financed Purchases

The District has entered into agreements to lease various facilities and equipment. Two such on-going leases are a computer refresh lease and a lease-back agreement with the Central Valley Support Services JPA. The lease agreement was entered into with the JPA to provide funds for construction and modernization projects within the District and to provide the JPA with the source of funds to make the required debt service payments on the JPA’s $11,755,000 2020 Certificates of Participation issuance. The financed purchases have minimum payments as follows:

Year Ending
	June 30,	

2023 2024 2025 2026 2027
2028-2030

	Principal	

$	 461,547 1,955,490 2,014,471 1,652,000 1,717,000
	5,477,000 

Interest to
	Maturity	

$	482,143 478,199 414,618 348,800 284,400
	440,600 

	Total	

$	 943,690 2,433,689 2,429,089 2,000,800 2,001,400
	5,917,600 

Total	$ 13,277,508	$	2,448,760	$ 15,726,268

Leases

The District has entered into an agreement to lease the building located at 310 N. Sunnyside, Clovis, CA for their Campus Catering (food services) department. The lease began June 1, 2020, and ends June 1, 2036, and under the terms of the lease the District will make semi-annual payments ranging from $8,000 - $448,800 (principal portion increasing and interest portion decreasing over the life of the lease). The annual interest rate charged to the lease is 4.0%. At June 30, 2022, the District has recognized right-to-use asset of $4,915,000 and a total lease liability of $4,430,000 related to the lease agreement. During the fiscal year, the District recorded $297,879 in amortization expenses and $210,000 in principal and $185,600 in interest payments for the right-to-use of the building. The District also pays for the maintenance and upkeep of the building, which is not included in the measurement of the lease liability as they are variable in nature. The District’s liability on the lease is summarized below:

Restated Leases Outstanding
Lease	     July 1, 2021	       	Addition	

Leases Outstanding
	Payments	        June 30, 2022 

Campus Catering	$	4,640,000	$	-	$	(210,000)	$	4,430,000

50

Clovis Unified School District Notes to Financial Statements
June 30, 2022

The remaining principal and interest payment requirements for the lease obligation debt as of June 30, 2022, are as follows:

Year Ending June 30,

2023 2024 2025 2026 2027
2028-2032 2033-2036

	Principal	

$          220,000 225,000 240,000 265,000 275,000 1,600,000
	1,605,000 

	Interest	

$	177,200 168,400 159,400 149,800 139,200 520,400
	165,200 

	Total	

$          397,200 393,400 399,400 414,800 414,200 2,120,400
	1,770,200 

Total	$	4,430,000	$	1,479,600	$	5,909,600

Compensated Absences

Compensated absences (unpaid employee vacation) for the District at June 30, 2022, amounted to $3,189,394.

Note 10 - Net Other Postemployment Benefit (OPEB) Liability

For the fiscal year ended June 30, 2022, the District reported net OPEB liability, deferred outflows of resources, deferred inflows of resources, and OPEB expense for the following plans:

	OPEB Plan	

District Plan
Medicare Premium Payment (MPP) Program

Net OPEB
	Liability	

$ 367,509,441

	2,214,642 

Deferred Outflows
	of Resources	

$	91,254,686

	- 

Deferred Inflows
	of Resources	

$	126,294,235

	- 

OPEB
	Expense	

$ 27,074,324

	(479,357) 

Total	$ 369,724,083	$	91,254,686	$	126,294,235	$ 26,594,967

The details of each plan are as follows:

District Plan

Plan Administration

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

51

Clovis Unified School District Notes to Financial Statements
June 30, 2022

Plan Membership

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

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

Total	4,773

Benefits Provided

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

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

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

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

Contributions

The benefit payment requirements of the Plan members and the District are established and may be amended by the District. The benefit payment is based on projected pay-as-you-go financing requirements as determined annually through the agreements with the District. For measurement period of June 30, 2022, the District paid $10,741,553 in benefits which did not include credit for an implicit rate subsidy.

Total OPEB Liability of the District

The District’s total OPEB liability of $367,509,441 was measured as of June 30, 2022, and was determined by applying updated procedures to the financial reporting actuarial valuation as of July 1, 2020.

52

Clovis Unified School District Notes to Financial Statements
June 30, 2022

Actuarial Assumptions

The following assumptions were applied to all periods included in the measurement as of June 30, 2022, unless otherwise specified:

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

Entry age, level percent of pay 3.00%
2.75% 3.69%
5.00% for 2022-2023; 4.00% for 2024-2069; 4.00% for 2070 and later; Medicare ages 4.00% for all years

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

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

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

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

Changes in the Total OPEB Liability

Total OPEB
	Liability	

Balance, June 30, 2021

Service cost Interest
Changes of assumptions or other inputs Benefit payments

Net change in total OPEB liability

Balance, June 30, 2022

 $ 492,437,990 

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

	(124,928,549) 

$ 367,509,441

53

Clovis Unified School District Notes to Financial Statements
June 30, 2022

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

Changes of Assumptions - The discount rate was changed from 1.92% to 3.69% since the previous valuation.

Sensitivity of the Total OPEB Liability to Changes in the Discount Rate

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

	Discount Rate	

1% decrease (2.69%)
Current discount rate (3.69%) 1% increase (4.69%)

Total OPEB
	Liability	

$ 439,959,040 367,509,441 310,976,729

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

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

	Healthcare Cost Trend Rate	

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

Total OPEB
	Liability	

$ 299,901,419 367,509,441 458,480,773

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

At June 30, 2022, District reported deferred outflows of resources and deferred inflow of resources related to OPEB from the following sources:

Deferred Outflows
	of Resources	

Deferred Inflows
	of Resources	

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

$	20,393,846
	70,860,840 

$	-
	126,294,235 

Total	$	91,254,686	$	126,294,235

54

Clovis Unified School District Notes to Financial Statements
June 30, 2022

Amounts reported as deferred outflows of resources and deferred inflows of resources related to changes of assumptions and differences between expected and actual experience will be amortized over the Expected Average Remaining Service Life (EARSL) of all members that are provided benefits (active, inactive, and retirees) as of the beginning of the measurement period and will be recognized in pension expense as follows:

Year Ended
	June 30,	

2023 2024 2025 2026 2027
Thereafter

Deferred Outflows
	of Resources	

$	14,967,085 14,967,085 14,967,085 14,967,085 14,967,085
	16,419,261 

Total	$	91,254,686

Year Ended
	June 30,	

2023 2024 2025 2026 2027
Thereafter

Deferred Inflows
	of Resources	

$	(16,191,569) (16,191,569) (16,191,569) (16,191,569) (16,191,569)
	(45,336,390) 

Total	$	(126,294,235)

Medicare Premium Payment (MPP) Program

Plan Description

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

A full description of the MPP Program regarding benefit provisions, assumptions (for funding, but not accounting purposes), and membership information is listed in the June 30, 2020, annual actuarial valuation report, Medicare Premium Payment Program Actuarial Valuation. This report and CalSTRS audited financial information are publicly available reports that can be found on the CalSTRS website under Publications at: http://www.calstrs.com/member-publications.

55

Clovis Unified School District Notes to Financial Statements
June 30, 2022

Benefits Provided

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

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

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

Net OPEB Liability and OPEB Expense

At June 30, 2022, the District reported a liability of $2,214,642 for its proportionate share of the net OPEB liability for the MPP Program. The net OPEB liability was measured as of June 30, 2021, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2020. The District’s proportion of the net OPEB liability was based on a projection of the District’s long-term share of contributions to the OPEB Plan relative to the projected contributions of all participating school districts, actuarially determined. The District’s proportionate share for the measurement period June 30, 2021 and
June 30, 2020, respectively, was 0.5552% and 0.6357%, resulting in a net decrease in the proportionate share of 0.0805%.

For the year ended June 30, 2022, the District recognized OPEB expense of $(479,357).

Actuarial Methods and Assumptions

The June 30, 2021 total OPEB liability was determined by applying update procedures to the financial reporting actuarial valuation as of June 30, 2020, and rolling forward the total OPEB liability to June 30, 2021, using the assumptions listed in the following table:

Measurement Date Valuation Date Experience Study

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

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

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

56

Clovis Unified School District Notes to Financial Statements
June 30, 2022

For the valuation as of June 30, 2020, CalSTRS uses a generational mortality assumption, which involves the use of a base mortality table and projection scales to reflect expected annual reductions in mortality rates at each age, resulting in increases in life expectancies each year into the future. The base mortality tables are CalSTRS custom tables derived to best fit the patterns of mortality among our members. The projection scale was set equal to 110% of the ultimate improvement factor from the Mortality Improvement Scale (MP-2019) table, issued by the Society of Actuaries.

Assumptions were made about future participation (enrollment) into the MPP Program because CalSTRS is unable to determine which members not currently participating meet all eligibility criteria for enrollment in the future. Assumed enrollment rates were derived based on past experience and are stratified by age with the probability of enrollment diminishing as the members’ age increases. This estimated enrollment rate was then applied to the population of members who may meet criteria necessary for eligibility and are not currently enrolled in the MPP Program. Based on this, the estimated number of future enrollments used in the financial reporting valuation was 245 or an average of 0.16% of the potentially eligible population (152,062).

The MPP Program is funded on a pay-as-you-go basis with contributions generally being made at the same time and in the same amount as benefit payments and expenses coming due. Any funds within the MPP Program as of June 30, 2021, were to manage differences between estimated and actual amounts to be paid and were invested in the Surplus Money Investment Fund, which is a pooled investment program administered by the State Treasurer.

Discount Rate

The discount rate used to measure the total OPEB liability as of June 30, 2021, is 2.16%. As the MPP Program is funded on a pay-as-you-go basis as previously noted, the OPEB Plan’s fiduciary net position was not projected to be sufficient to make projected future benefit payments. Therefore, a discount rate of 2.16%, which is the Bond Buyer 20-Bond GO Index from Bondbuyer.com as of June 30, 2021, was applied to all periods of projected benefit payments to measure the total OPEB liability. The discount rate decreased 0.05% from 2.21% as of
June 30, 2020.

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

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

Net OPEB
	Discount Rate	                                            	Liability	

1% decrease (1.16%)
Current discount rate (2.16%) 1% increase (3.16%)

$	2,441,142 2,214,642 2,021,118

57

Clovis Unified School District Notes to Financial Statements
June 30, 2022

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

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

Net OPEB
Medicare Costs Trend Rates	         Liability	

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

$	2,013,957 2,214,642 2,444,718

58

Clovis Unified School District Notes to Financial Statements
June 30, 2022

Note 11 - Fund Balances

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

Nonspendable Revolving cash Stores inventories
Prepaid expenditures

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

$         144,000       $                      -       $                      -       $                      -       $             3,500       $         147,500 1,875,705                 629,930                               -                               -                    46,298              2,551,933
	475,000  	-  	-  	-  	643,000  	1,118,000 

Total nonspendable 	2,494,705  	629,930  	-  	-  	692,798  	3,817,433 

Restricted
Legally restricted programs	29,562,555	-	-	-	180,730	29,743,285 Student activities                                               -	-	-	-              3,478,946              3,478,946 Food service                                                        -            10,766,601	-	-                               -	10,766,601 Childcare programs                                           -	-	-	-              7,583,860              7,583,860 Capital projects                                                  -	-            31,484,714         120,885,349            96,088,016         248,458,079
Debt services	                           -  	-  	-  	-  	52,444,163  	52,444,163 

Total restricted

Committed
10% stabilization, BP 3100 Deferred maintenance
program
Future program growth Textbooks
Adult education future program growth
Adult education capital improvements

Total committed

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

Total assigned

Unassigned
Remaining unassigned

	29,562,555  	10,766,601  	31,484,714       120,885,349       159,775,715       352,474,934 

56,958,871	-	-	-	-	56,958,871

-                               -                               -                               -                    10,771                    10,771 15,263,597                               -                               -                               -                               -            15,263,597 5,481,725                               -                               -                               -                               -              5,481,725

-	-	-	-	728,479	728,479

	-  	-  	-  	-  	2,500,000  	2,500,000 

	77,704,193  	-  	-  	-  	3,239,250  	80,943,443 

-	-	-	-	690,795	690,795

-	-	-	-	369,588	369,588

	-  	-  	-  	-  	6,996,034  	6,996,034 

	-  	-  	-  	-  	8,056,417  	8,056,417 

	56,282,327  	-  	-  	-  	-  	56,282,327 

Total	$166,043,780	$ 11,396,531	$ 31,484,714	$120,885,349	$171,764,180	$501,574,554

59

Clovis Unified School District Notes to Financial Statements
June 30, 2022

Note 12 - Risk Management

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

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

All funds of the District, which reflect salary costs, participate in the program and make payments to the Self Insurance Fund based on actuarial estimates of the amounts needed to pay prior and current year claims. The claims liability of $27,731,358 reported in the Self Insurance Fund at June 30, 2022, is based on the requirements of GASB Statement No. 10, which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. This amount also consists of a reserved for health and welfare claims based on an actuary study of estimated losses.

Property and Liability

The District is exposed to various risks of loss related to torts; theft, damage, and destruction of assets; errors and omissions; injuries to employees and natural disasters. During fiscal year ending June 30, 2022, the District contracted with the Schools Excess Liability Fund (SELF) and the Alliance of Schools for Cooperative Insurance Programs (ASCIP) for property and liability insurance coverage. Settled claims have not exceeded this commercial coverage in any of the past three years. There has not been a significant reduction in coverage from the prior year.

Claims Liabilities

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

60

Clovis Unified School District Notes to Financial Statements
June 30, 2022

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, 2020 to June 30, 2022:

Workers’
	Health Care	      Compensation 

Stop-Loss, Disability and
	Property	     	Total	

Liability Balance, July 1, 2020 Claims and changes in estimates Claims payments

Liability Balance, June 30, 2021 Claims and changes in estimates Claims payments

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

12,409,462 589,896
	- 

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

15,019,911 -
	(287,911) 

$          604,213 503,544
	(400,895) 

706,862 -
	(706,862) 

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

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

Liability Balance, June 30, 2022	$ 12,999,358	$ 14,732,000	$	-	$ 27,731,358

Note 13 - Employee Retirement Systems

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

For the fiscal year ended June 30, 2022, the District reported its proportionate share of net pension liabilities, deferred outflows of resources, deferred inflows of resources, and pension expense for each of the above plans as follows:

	Pension Plan	

CalSTRS CalPERS

Net
	Pension Liability 

$	168,097,217
	115,053,609 

Deferred Outflows
	of Resources	

$	72,732,582
	25,172,687 

Deferred Inflows
	of Resources	

$	153,757,720
	49,983,197 

 Pension Expense 

$	12,465,882
	11,469,547 

Total	$	283,150,826	$	97,905,269	$	203,740,917	$	23,935,429

61

Clovis Unified School District Notes to Financial Statements
June 30, 2022

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, 2020, annual actuarial valuation report, Defined Benefit Program Actuarial Valuation. This report and CalSTRS audited financial information are publicly available reports that can be found on the CalSTRS website under Publications at: http://www.calstrs.com/member-publications.

Benefits Provided

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

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

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

62

Clovis Unified School District Notes to Financial Statements
June 30, 2022

The STRP provisions and benefits in effect at June 30, 2022, are summarized as follows:

STRP Defined Benefit Program

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

On or before December 31, 2012 2% at 60
5 years of service Monthly for life 60
2.0% - 2.4% 10.25% 16.92% 10.828%

On or after January 1, 2013 2% at 62
5 years of service Monthly for life 62
2.0% - 2.4% 10.205% 16.92% 10.828%

Contributions

Required member, District and State of California contributions rates are set by the California Legislature and Governor and detailed in Teachers’ Retirement Law. The contributions rates are expressed as a level percentage of payroll using the entry age normal actuarial method. In accordance with AB 1469, employer contributions into the CalSTRS will be increasing to a total of 19.1% of applicable member earnings phased over a seven-year period. The contribution rates for each plan for the year ended June 30, 2022, are presented above and the District’s total contributions were $36,574,644.

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

At June 30, 2022, the District reported a liability for its proportionate share of the net pension liability that reflected a reduction for State pension support provided to the District. The amount recognized by the District as its proportionate share of the net pension liability, the related state support and the total portion of the net pension liability that was associated with the District were as follows:

Total net pension liability, including State share

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

Total

$ 168,097,217
	84,580,000 

$ 252,677,217

The net pension liability was measured as of June 30, 2021. 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, 2021 and June 30, 2020, respectively, was 0.3694% and 0.3648%, resulting in a net increase in the proportionate share of 0.0046%.

63

Clovis Unified School District Notes to Financial Statements
June 30, 2022

For the year ended June 30, 2022, the District recognized pension expense of $12,465,882. In addition, the District recognized pension expense and revenue of $2,893,800 for support provided by the State. At
June 30, 2022, the District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Outflows
	of Resources	

Deferred Inflows
	of Resources	

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

$	36,574,644

11,919,256

-

421,093
	23,817,589 

$	-

2,899,443

132,969,228

17,889,049
	- 

Total	$	72,732,582	$	153,757,720

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

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

Year Ended
	June 30,	

2023 2024 2025 2026

Deferred Outflows/(Inflows)
	of Resources	

$	(33,766,210) (30,885,051) (31,651,512)
	(36,666,455) 

Total	$	(132,969,228)

64

Clovis Unified School District Notes to Financial Statements
June 30, 2022

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

Year Ended
	June 30,	

2023 2024 2025 2026 2027
Thereafter

Deferred Outflows/(Inflows)
	of Resources	

$             8,707,115 10,859,589
(23,927) (1,011,671) (1,153,949)
	(2,007,711) 

Total	$	15,369,446

Actuarial Methods and Assumptions

Total pension liability for STRP was determined by applying update procedures to the financial reporting actuarial valuation as of June 30, 2020, and rolling forward the total pension liability to June 30, 2021. The financial reporting actuarial valuation as of June 30, 2020, 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, 2020 June 30, 2021
July 1, 2015 through June 30, 2018 Entry age normal
7.10% 7.10% 2.75% 3.50%

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

65

Clovis Unified School District Notes to Financial Statements
June 30, 2022

The long-term expected rate of return on pension plan investments was determined using a building-block method in which best estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. The best estimate ranges were developed using capital market assumptions from CalSTRS general investment consultant as an input to the process. The actuarial investment rate of return assumption was adopted by the board in January 2020 in conjunction with the most recent experience study. For each current and future valuation, CalSTRS’ independent consulting actuary (Milliman) reviews the return assumption for reasonableness based on the most current capital market assumptions. Best estimates of 20-year geometrically linked real rates of return and the assumed asset allocation for each major asset class for the year ended June 30, 2021, are summarized in the following table:

Asset Class

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

Assumed Asset
	Allocation	

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

Long-Term Expected Real
 Rate of Return 

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

Discount Rate

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

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

	Discount Rate	

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

Net Pension
	Liability	

$ 342,185,770 168,097,217 23,607,043

66

Clovis Unified School District Notes to Financial Statements
June 30, 2022

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, 2020, annual actuarial valuation report, Schools Pool Actuarial Valuation. This report and CalPERS audited financial information are publicly available reports that can be found on the CalPERS website under Forms and Publications at: https://www.calpers.ca.gov/page/forms-publications.

Benefits Provided

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

The CalPERS provisions and benefits in effect at June 30, 2022, are summarized as follows:

School Employer Pool (CalPERS)

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

On or before December 31, 2012 2% at 55
5 years of service Monthly for life 55
1.1% - 2.5% 7.00% 22.91%

On or after January 1, 2013 2% at 62
5 years of service Monthly for life 62
1.0% - 2.5% 7.00% 22.91%

67

Clovis Unified School District Notes to Financial Statements
June 30, 2022

Contributions

Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on July 1 following notice of a change in the rate. Total plan contributions are calculated through the CalPERS annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The District is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. The contributions rates are expressed as percentage of annual payroll. The contribution rates for each plan for the year ended June 30, 2022, are presented above and the total District contributions were $20,783,561.

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

As of June 30, 2022, the District reported net pension liabilities for its proportionate share of the CalPERS net pension liability totaling $115,053,609. The net pension liability was measured as of June 30, 2021. 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, 2021 and
June 30, 2020, respectively, was 0.5658% and 0.5830%, resulting in a net decrease in the proportionate share of 0.0172%.

For the year ended June 30, 2022, the District recognized pension expense of $11,469,547. At June 30, 2022, the District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Outflows
	of Resources	

Deferred Inflows
	of Resources	

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

$	20,783,561

954,481

-

	3,434,645 

$	-

5,557,817

44,154,151

	271,229 

Total	$	25,172,687	$	49,983,197

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

68

Clovis Unified School District Notes to Financial Statements
June 30, 2022

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

Year Ended
	June 30,	

2023 2024 2025 2026

Deferred Outflows/(Inflows)
	of Resources	

$	(11,073,823) (10,183,371) (10,616,830)
	(12,280,127) 

Total	$	(44,154,151)

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

Year Ended
	June 30,	

2023 2024 2025 2026

Deferred Outflows/(Inflows)
	of Resources	

$	 1,252,205 (1,266,060) (1,298,915)
	(127,150) 

Total	$	(1,439,920)

Actuarial Methods and Assumptions

Total pension liability for the SEP was determined by applying update procedures to the financial reporting actuarial valuation as of June 30, 2020, and rolling forward the total pension liability to June 30, 2021. The financial reporting actuarial valuation as of June 30, 2020, 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, 2020 June 30, 2021
July 1, 1997 through June 30, 2015 Entry age normal
7.15% 7.15% 2.50%
Varies by entry age and service

69

Clovis Unified School District Notes to Financial Statements
June 30, 2022

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

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

	Asset Class	

Global equity Fixed income Inflation assets Private equity
Real assets Liquidity

Assumed Asset
	Allocation	

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

Long-Term Expected Real
 Rate of Return 

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

Discount Rate

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

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

	Discount Rate	

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

Net Pension
	Liability	

$ 193,996,540 115,053,609 49,514,038

70

Clovis Unified School District Notes to Financial Statements
June 30, 2022

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

Plan Description

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

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

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

Funding Policy

Participants in APPLE are required to contribute 3.75% of gross salary to APPLE. The District is required to contribute 3.75% of gross salary expenditures to APPLE. The District’s contributions to APPLE for the fiscal year ending June 30, 2022, 2021, 2020 were $683,658, $617,251, and $701,197, 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 $23,755,717 (10.828% of annual payroll). Contributions are no longer appropriated in the annual Budget Act for the legislatively mandated benefits to CalPERS. Therefore, there is no on behalf contribution rate for CalPERS. Under accounting principles generally accepted in the United States of America, these amounts are to be reported as revenues and expenditures. Accordingly, these amounts have been recorded in these financial statements.

Note 14 - Commitments and Contingencies

Grants

The District received financial assistance from Federal and State agencies in the form of grants. The disbursement of funds received under these programs generally requires compliance with terms and conditions specified in the grant agreements and are subject to audit by the grantor agencies. Any disallowed claims resulting from such audits could become a liability of the General Fund or other applicable funds. However, in the opinion of management, any such disallowed claims will not have a material adverse effect on the overall financial position of the District at June 30, 2022.

71

Clovis Unified School District Notes to Financial Statements
June 30, 2022

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, 2022.

Construction Commitments

As of June 30, 2022, the District had the following commitments with respect to the unfinished capital projects:

Remaining	Expected Construction                  Date of
	Location	 	Description	  Commitment  	Completion	

Various sites Various sites

Clovis East High School Buchanan High School District-wide
Various sites
Bud Rank Elementary Nelson Elementary Various sites
Clovis East High School Herndon/Fowler Buchanan High School Fowler/McKinley Bradley Center
Dry Creek Elementary Clovis West High School Clovis West High School Clovis East High School/
Reyburn Intermediate Various sites
Various sites Various sites

Three Special Education portables Install sinks and toilets in Special
Education portables CTE construction
CTE construction School site paving
Shade structures at 34 sites Roofing
Classroom modernization Field lights
Soccer stadium
New Special Education/online school Walk-in modernization
New elementary school (design stage) New education center (design stage) Site modernization
New wing Pool

Fire panel upgrade HVAC upgrade EMS upgrade Lockdown project

$	1,158,576

417,608 28,551 306,621 354,415 1,849,576 666,160 217,943 2,970,221 672,097 1,227,929 17,800 318,380 7,430,454 163,497 951,329 5,577,732

2,477,173 213,716 109,738
	414,284 

November 2022

November 2022 September 2022 November 2022 August 2022 September 2022 August 2022 November 2022 November 2022 August 2023 August 2024 August 2023 August 2024 August 2026 August 2022 September 2022 May 2023

December 2022 September 2022 August 2024 August 2024

Total	$ 27,543,800

72

Clovis Unified School District Notes to Financial Statements
June 30, 2022

Note 15 - Participation in Joint Powers Authorities

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

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

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

During the year ended June 30, 2022, the District made no direct payments to SELF for liability insurance coverage. The payments are made through ASCIP.

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

During the year ended June 30, 2022, the District made payments of $3,843,922 to ASCIP for property and liability insurance coverage and $1,096,981 for workers’ compensation insurance coverage.

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

During the year ended June 30, 2022, the District made no payments to the Education Technology JPA.

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

During the year ended June 30, 2022, the District made payments of $1,252,487 to 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, 2022, the District made payments of $1,326,980 to CART for the financing and operation of a joint technical center for high school age students.

73

Clovis Unified School District Notes to Financial Statements
June 30, 2022

Note 16 - Restatement of Prior Year Net Position and Fund Balance

As of July 1, 2021, the District adopted GASB Statement No. 87, Leases. The implementation of this standard establishes a single model for lease accounting based on the foundational principle that leases are financings of the right-to-use an underlying asset. The Statement requires 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. Beginning net position was restated to retroactively adopt the provisions of GASB Statement No. 87 as follows:

Government-Wide Financial Statements Net Position - Beginning
Right-to-use intangible asset, net of amortization Lease liability

$ 42,773,069 4,468,182
	(4,640,000) 

Net Position - Beginning, as Restated	$ 42,601,251

74

Required Supplementary Information June 30, 2022
Clovis Unified School District

eidebailly.com

Clovis Unified School District Budgetary Comparison Schedule – General Fund
Year Ended June 30, 2022

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

Total revenues

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

$416,909,623	$412,458,240	$412,458,240	$	-97,777,377           52,159,347           50,362,089            (1,797,258) 87,538,643           96,166,964           96,166,964                              -
	13,669,580  	9,469,205  	11,266,463  	1,797,258 

	615,895,223  	570,253,756  	570,253,756  	- 

Expenditures Current
Certificated salaries                                    202,510,507         217,328,092         217,328,092                              -Classified salaries                                          87,735,508           89,605,971           89,605,971                              -Employee benefits                                      148,675,804         155,529,930         155,529,930                              -Books and supplies                                     132,311,519           46,565,164           46,565,164                              -Services and operating expenditures         35,049,489           41,523,838           41,523,838                              -Other outgo                                                        (249,040)                248,268                 248,268                              -Capital outlay                                                             914,889              4,929,968              4,929,968                              -
Debt service
Debt service - principal	829,492	830,671	830,671	-
Debt service - interest and other	               13,567  	76,055  	76,055  	- 

Total expenditures

Excess (Deficiency) of Revenues Over Expenditures

Other Financing Sources (Uses) Transfers in
Proceeds from financed purchase Transfers out

Net financing sources (uses)

	607,791,735  	556,637,957  	556,637,957  	- 

	8,103,488  	13,615,799  	13,615,799  	- 

3,336,000                 336,000                 336,000                              -1,700,000              1,700,000              1,700,000                              -
	(5,923,968)  	(12,950,750)  	(12,950,750)  	- 

	(887,968)  	(10,914,750)  	(10,914,750)  	- 

Net Change in Fund Balances	7,215,520	2,701,049	2,701,049	-

Fund Balance - Beginning	     163,342,731  	163,342,731  	163,342,731  	- 

Fund Balance - Ending	$170,558,251	$166,043,780	$166,043,780	$	-

See Notes to Required Supplementary Information	75

Clovis Unified School District Budgetary Comparison Schedule – Cafeteria Fund
Year Ended June 30, 2022

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

Revenues
Federal sources Other State sources Other local sources

Total revenues

$ 11,888,920       $ 20,478,754       $ 20,478,754       $                      -749,523             1,393,673             1,393,673                              -
	3,958,431  	123,354  	123,354  	- 

	16,596,874  	21,995,781  	21,995,781  	- 

Expenditures Current
Classified salaries	5,733,536	5,384,208	5,384,208	-Employee benefits	3,440,080	3,169,298	3,169,298	-Books and supplies	7,394,879	7,323,557	7,323,557	-Services and operating expenditures              638,832                 219,543                 219,543	-Other outgo                                                          495,151                 421,395                 421,395	-
Capital Outlay	                          -  	22,200  	22,200  	- 

Total expenditures	       17,702,478  	16,540,201  	16,540,201  	- 

Net Change in Fund Balances	(1,105,604)	5,455,580	5,455,580	-

Fund Balance - Beginning	         5,940,951  	5,940,951  	5,940,951  	- 

Fund Balance - Ending	$	4,835,347	$ 11,396,531	$ 11,396,531	$	-

See Notes to Required Supplementary Information	76

Clovis Unified School District Schedule of Changes in the District’s Total OPEB Liability and Related Ratios
Year Ended June 30, 2022

	2022	       	2021	       	2020	       	2019	       	2018	

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

Net change in total OPEB liability

Total OPEB Liability - Beginning

Total OPEB Liability - Ending

Covered Payroll

Total OPEB Liability as a Percentage of Covered Payroll

Measurement Date

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

(124,928,549)

	492,437,990 

$ 367,509,441

N/A 1

N/A 1

June 30, 2022

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

70,304,500

	422,133,490 

$ 492,437,990

N/A 1

N/A 1

June 30, 2021

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

65,012,515

	357,120,975 

$ 422,133,490

N/A 1

N/A 1

June 30, 2020

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

42,348,986

	314,771,989 

$ 357,120,975

N/A 1

N/A 1

June 30, 2019

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

15,203,105

	299,568,884 

$ 314,771,989

N/A 1

N/A 1

June 30, 2018

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

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

See Notes to Required Supplementary Information	77

Clovis Unified School District Schedule of the District’s Proportionate Share of the Net OPEB Liability – MPP Program
Year Ended June 30, 2022

Year ended June 30,

Proportion of the net OPEB liability

Proportionate share of the net OPEB liability

Covered payroll

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

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

Measurement Date

	2022	

	0.5552% 

 $	2,214,642 

N/A1

N/A1

	(0.80%) 

June 30, 2021

	2021	

	0.6357% 

 $	2,693,999 

N/A1

N/A1

	(0.71%) 

June 30, 2020

	2020	

	0.6295% 

 $	2,344,110 

N/A1

N/A1

	(0.81%) 

June 30, 2019

	2019	

	0.6221% 

 $	2,381,187 

N/A1

N/A1

	(0.40%) 

June 30, 2018

	2018	

	0.6108% 

 $	2,569,769 

N/A1

N/A1

	0.01% 

June 30, 2017

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

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

See Notes to Required Supplementary Information	78

Clovis Unified School District Schedule of the District’s Proportionate Share of the Net Pension Liability
Year Ended June 30, 2022

CalSTRS

Proportion of the net pension liability

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

Total

Covered payroll

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

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

Measurement Date

CalPERS

Proportion of the net pension liability

Proportionate share of the net pension liability

Covered payroll

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

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

Measurement Date

	2022	

	0.3694% 

$ 168,097,217
	84,580,000 

$ 252,677,217

 $ 199,959,300 

	84.07% 

	87% 

June 30, 2021

	0.5658% 

 $ 115,053,609 

 $ 81,379,290 

	141.38% 

	81% 

June 30, 2021

	2021	

	0.3648% 

$ 353,552,614
	182,256,414 

$ 535,809,028

 $ 197,774,778 

	178.77% 

	72% 

June 30, 2020

	0.5830% 

 $ 178,895,219 

 $ 84,038,649 

	212.87% 

	70% 

June 30, 2020

	2020	

	0.3558% 

321,370,136
	175,328,864 

$ 496,699,000

 $ 192,616,677 

	166.84% 

	73% 

June 30, 2019

	0.5770% 

 $ 168,151,626 

 $ 80,165,104 

	209.76% 

	70% 

June 30, 2019

	2019	

	0.3466% 

318,541,616
	182,379,973 

$ 500,921,589

 $ 188,468,233 

	169.02% 

	71% 

June 30, 2018

	0.5610% 

 $ 149,586,205 

 $ 74,208,963 

	201.57% 

	71% 

June 30, 2018

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

See Notes to Required Supplementary Information	79

Clovis Unified School District Schedule of the District’s Proportionate Share of the Net Pension Liability
Year Ended June 30, 2022

CalSTRS

Proportion of the net pension liability

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

Total

Covered payroll

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

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

Measurement Date

CalPERS

Proportion of the net pension liability

Proportionate share of the net pension liability

Covered payroll

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

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

Measurement Date

	2018	

	0.3374% 

312,018,523
	184,587,522 

$ 496,606,045

 $ 182,374,682 

	171.09% 

	69% 

June 30, 2017

	0.5487% 

 $ 130,998,817 

 $ 70,034,469 

	187.05% 

	72% 

June 30, 2017

	2017	

	0.3363% 

271,983,817
	154,835,535 

$ 426,819,352

 $ 171,698,993 

	158.41% 

	70% 

June 30, 2016

	0.5366% 

 $ 105,981,422 

 $ 64,365,730 

	164.66% 

	74% 

June 30, 2016

	2016	

	0.3507% 

236,088,495
	124,864,788 

$ 360,953,283

 $ 163,040,732 

	144.80% 

	74% 

June 30, 2015

	0.5465% 

 $ 80,561,650 

 $ 60,511,656 

	133.13% 

	79% 

June 30, 2015

	2015	

	0.3264% 

190,731,688
	115,172,028 

$ 305,903,716

 $ 150,043,685 

	127.12% 

	77% 

June 30, 2014

	0.5259% 

 $ 59,703,034 

 $ 55,215,032 

	108.13% 

	83% 

June 30, 2014

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

See Notes to Required Supplementary Information	80

Clovis Unified School District Schedule of the District’s Contributions Year Ended June 30, 2022

	2022	       	2021	       	2020	       	2019	

CalSTRS

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

$ 36,574,644
	36,574,644 

$ 32,293,427
	32,293,427 

$ 33,819,487
	33,819,487 

$ 31,357,995
	31,357,995 

Contribution deficiency (excess)	$	-	$	-	$	-	$	-

Covered payroll

Contributions as a percentage of covered payroll

 $ 216,162,199 

	16.92% 

 $ 199,959,300 

	16.15% 

 $ 197,774,778 

	17.10% 

 $ 192,616,677 

	16.28% 

CalPERS

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

$ 20,783,561
	20,783,561 

$ 16,845,513
	16,845,513 

$ 16,573,262
	16,573,262 

$ 14,479,421
	14,479,421 

Contribution deficiency (excess)	$	-	$	-	$	-	$	-

Covered payroll

Contributions as a percentage of covered payroll

 $ 90,718,293 

	22.910% 

 $ 81,379,290 

	20.700% 

 $ 84,038,649 

	19.7210% 

 $ 80,165,104 

	18.0620% 

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

See Notes to Required Supplementary Information	81

Clovis Unified School District Schedule of the District’s Contributions Year Ended June 30, 2022

	2018	       	2017	       	2016	       	2015	

CalSTRS

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

$ 27,195,966
	27,195,966 

$ 22,942,735
	22,942,735 

$ 18,423,302
	18,423,302 

$ 14,478,017
	14,478,017 

Contribution deficiency (excess)	$	-	$	-	$	-	$	-

Covered payroll

Contributions as a percentage of covered payroll

 $ 188,468,233 

	14.43% 

 $ 182,374,682 

	12.58% 

 $ 171,698,993 

	10.73% 

 $ 163,040,732 

	8.88% 

CalPERS

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

$ 11,525,394
	11,525,394 

$	9,726,387
	9,726,387 

$	7,625,408
	7,625,408 

$	7,122,827
	7,122,827 

Contribution deficiency (excess)	$	-	$	-	$	-	$	-

Covered payroll

Contributions as a percentage of covered payroll

 $ 74,208,963 

	15.5310% 

 $ 70,034,469 

	13.8880% 

 $ 64,365,730 

	11.8470% 

 $ 60,511,656 

	11.7710% 

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

See Notes to Required Supplementary Information	82

Clovis Unified School District Notes to Required Supplementary Information
June 30, 2022

Note 1 -	Purpose of Schedules

Budgetary Comparison Schedules

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

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

These schedules present information for the original and final budgets and actual results of operations, as well as the variances from the final budget to actual results of operations.

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

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

• Changes in Benefit Terms - There were no changes in the benefit terms since the previous valuation. • Changes of Assumptions - The inflation rate was changed from 1.92% to 3.69% since last study.

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

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

• Changes in Benefit Terms - There were no changes in the benefit terms since the previous valuation. • Changes of Assumptions - The plan rate of investment return assumption was changed from 2.21% to
2.16% since the previous valuation.

83

Clovis Unified School District Notes to Required Supplementary Information
June 30, 2022

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

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

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

Schedule of the District’s Contributions

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

84

Supplementary Information June 30, 2022
Clovis Unified School District

eidebailly.com

Clovis Unified School District Schedule of Expenditures of Federal Awards Year Ended June 30, 2022

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

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

Federal Expenditures

U.S. Department of Education
Indian Education - Grants to Local Educational Agencies Federal Pell Grant Program
School Climate Tranformation
Passed Through California Department of Education (CDE) Special Education Cluster
Special Education Grants to States - Basic Local Assistance COVID-19, Special Education: ARP IDEA Part B, Local
Assistance Entitlement
Special Education Grants to States - Mental Health

84.060 84.063 84.184G

84.027

84.027 84.027A

[1]	$	149,730 [1]                          153,276 [1]                          705,908

13379	6,759,412

15638                       134,104 14468                       491,497

Subtotal (84.027)	7,385,013

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

84.173                   13430 84.173                   15639

84.173A	13007

84.173	13431

119,310 22,313

63,227

1,272

Subtotal (84.173)

Total Special Education Cluster

206,122

7,591,135

COVID-19, Elementary and Secondary School Emergency Relief Fund (ESSER)
COVID-19, Elementary and Secondary School Emergency Relief Fund II (ESSER II)
COVID-19, Expanded Learning Opportunities (ELO) Grant: ESSER II: State Reserve
COVID-19 Governor’s Emergency Education Relief Fund (GEER) COVID-19, Expanded Learning Opportunities (ELO) Grant
GEER II
COVID-19, Elementary and Secondary School Emergency Relief Fund III (ESSER III)
COVID-19, Expanded Learning Opportunities (ELO) Grant: ESSER III: State Reserve, Emergency Needs
COVID-19, Elementary and Secondary School Emergency Relief Fund III (ESSER III): Learning Loss
COVID-19, Expanded Learning Opportunities (ELO) Grant: ESSER III: State Reserve, Learning Loss

84.425D

84.425D

84.425D 84.425C

84.425C

84.425U

84.425U

84.425U

84.425U

15536	3,648,427

15547	4,620,776

15618                   3,544,158 15517                       515,112

15619	477,560

15559	14,425,413

15620	2,619,033

10155	1,131,539

15621	354,525

Subtotal (84.425)	31,336,543

[1] Not applicable, District is direct funded

See Notes to Supplementary Information	85

Clovis Unified School District Schedule of Expenditures of Federal Awards Year Ended June 30, 2022

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

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

U.S. Department of Education
Passed Through California Department of Education (CDE) Adult Education - Basic Grants to States: Adult Basic Adult Education - Basic Grants to States: Adult Secondary

84.002                   14508 84.002                   13978

244,965 423,806

Subtotal (84.002)	668,771

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

84.010                   14329 84.010                   15438

8,098,647 419,726

Subtotal (84.010)	8,518,373

English Language Acquisition State Grants - IEP English Language Acquisition State Grants - LEP

84.365                   15146 84.365                   14346

6,919 184,257

Subtotal (84.365)	191,176

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

84.048	14894

84.048	14893

273,590

50,000

Subtotal (84.048)	323,590

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

84.367	14341 84.424	15396 84.181	23761

84.126	10006

759,348 554,890 81,623

129,674

Total U.S. Department of Education	51,164,037

U.S. Department of Health and Human Services
Passed Through California Department of Social Services CCDF Cluster: COVID-19, Child Development: Coronavirus
Response and Relief Supplemental Appropriations (CRRSA)
Act - One-Time Stipend	93.575	15555	314,213

Total U.S. Department of Health and Human Services	314,213

U.S. Department of Defense
ROTC Language and Culture Training Grants	12.357	[1]	70,098

Total U.S. Department of Defense	70,098

[1] Not applicable, District is direct funded

See Notes to Supplementary Information	86

Clovis Unified School District Schedule of Expenditures of Federal Awards Year Ended June 30, 2022

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

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

U.S. Department of Agriculture
Passed Through California Department of Education
COVID-19, SNAP, Pandemic Electronic Benefits Transfer Local Administrative Grant	10.649

Child Nutrition Cluster
National School Lunch Program	10.555 COVID-19, SNP, Emergency Operational Costs
Reimbursement (ECR)	10.555 National School Lunch Program - Commodity
Supplemental Food	10.555

15644	5,814

13391	114,251

15637	276,511

13391	1,296,706

Subtotal (10.555)	1,687,468

National School Lunch Program - Summer Food Program	10.559	13004	18,785,473

Total Child Nutrition Cluster

Total U.S. Department of Agriculture

Total Federal Financial Assistance

See Notes to Supplementary Information

20,472,941

20,478,755

$ 72,027,103

87

Clovis Unified School District Local Education Agency Organization Structure
June 30, 2022

Organization

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

Governing Board

Member

Tiffany Stoker Madsen David DeFrank Yolanda Moore
Hugh Awtrey Steven G. Fogg Elizabeth Sandoval Vacant

Office

President
Vice-President Clerk
Member Member Member Member

Term Expires

2022 2024 2024 2024 2024 2022 2022

Administration

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

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

See Notes to Supplementary Information	88

Clovis Unified School District Schedule of Average Daily Attendance Year Ended June 30, 2022

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

Total regular ADA

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

Total extended year special education

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

Total special education, nonpublic, nonsectarian schools

Extended Year Special Education, Nonpublic, Nonsectarian Schools Transitional kindergarten through third
Fourth through sixth Seventh and eighth Ninth through twelfth
Total extended year special education, nonpublic, nonsectarian schools

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

Total community day school

Total ADA

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

Total regular ADA

Second Period
	Report	

11,407.54 8,963.80 6,102.19
	12,078.34 

	38,551.87 

11.78 6.42 3.51
	9.38 

	31.09 

-4.56 5.04
	6.85 

	16.45 

--
0.71
	1.24 

	1.95 

5.07 15.30
	22.07 

	42.44 

38,643.80

69.48 69.90 105.78
	544.28 

789.44

Annual
	Report	

11,420.75 8,966.78 6,094.29
	11,972.98 

	38,454.80 

11.78 6.42 3.51
	9.38 

	31.09 

0.14 4.38 4.56
	6.31 

	15.39 

0.01 0.33 0.82
	1.46 

	2.62 

5.56 14.86
	23.36 

	43.78 

38,547.68

71.05 72.34 111.15
	558.14 

812.68

See Notes to Supplementary Information	89

Clovis Unified School District Schedule of Instructional Time
Year Ended June 30, 2022

	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

2021-2022 Actual
	Minutes	

36,045

56,475 56,475 56,475

56,655 56,622 56,655 62,785 62,785

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

Number of Actual
	Days	

180

180 180 180

180 180 180 181 181

181 181 181 181

	Status	

Complied

Complied Complied Complied

Complied Complied Complied Complied Complied

Complied Complied Complied Complied

See Notes to Supplementary Information	90

Clovis Unified School District Reconciliation of Annual Financial and Budget Report with Audited Financial Statements
Year Ended June 30, 2022

There were no adjustments to the Unaudited Actual Financial Report, which required reconciliation to the audited financial statements at June 30, 2022.

See Notes to Supplementary Information	91

Clovis Unified School District Schedule of Financial Trends and Analysis Year Ended June 30, 2022

(Budget)
2023 1	             2022	 	2021	 	2020	

General Fund Revenues
Other sources and tranfers in

Total Revenues
and Other Sources

Expenditures
Other uses and transfers out

Total Expenditures and Other Uses

Increase in Fund Balance

$ 684,584,647	$	570,253,756	$	552,135,341	$	506,014,389
	836,000  	2,036,000  	1,142,375  	2,584,851 

	685,420,647  	572,289,756  	553,277,716  	508,599,240 

657,379,880	556,637,957	516,940,343	483,038,866
	7,471,066  	12,950,750  	4,076,521  	9,903,108 

	664,850,946  	569,588,707  	521,016,864  	492,941,974 

	20,569,701  	2,701,049  	32,260,852  	15,657,266 

Ending Fund Balance	$ 186,613,481	$	166,043,780	$	163,342,731	$	131,081,879

Available Reserves 2	$ 64,879,348	$	56,282,327	$	116,853,507	$	99,623,391

Available Reserves as a Percentage of Total Outgo

Long-Term Liabilities 3

Average Daily Attendance at P-2

9.76%

Not Available

40,144

9.88%

$ 1,269,825,744

38,644

22.43%

$ 1,566,519,197

41,558

20.21%

$ 1,427,129,549

41,558

The General Fund balance has increased by $34,961,901 over the past two years. The fiscal year 2022-2023 budget projects an increase of $20,569,701 (12.0%). For a district this size, the State recommends available reserves of at least two percent of total General Fund expenditures, transfers out, and other uses (total outgo).

The District has incurred operating surpluses in each of the past three years and anticipates incurring an operating surplus during the 2022-2023 fiscal year. Total long-term obligations have decreased by $157,303,805 over the past two years due to the issuance of general obligation refunding bonds and decreases in the District’s net pension liability and other postemployment benefits obligations in the current year.

Average daily attendance has decreased by 2,914 over the past two years, the decrease was due primarily to the impact of COVID-19 on student attendance. Growth of 1,500 ADA is anticipated during fiscal year 2022-2023.

1 Budget 2023 is included for analytical purposes only and has not been subjected to audit.
2 Available reserves consist of all unassigned fund balances including all amounts reserved for economic uncertainties contained within the General Fund.
3 The long-term liabilities balance was restated as of June 30, 2021, due to the implementation of GASB Statement No. 87.

See Notes to Supplementary Information	92

Clovis Unified School District Schedule of Charter Schools
Year Ended June 30, 2022

Name of Charter School

Clovis Online School

Charter
	Number	

1006

Included in
 Audit Report 

Yes

See Notes to Supplementary Information	93

Clovis Unified School District Combining Balance Sheet – Non-Major Governmental Funds
June 30, 2022

Student Activities Fund

Charter School Fund

Adult Education Fund

Child Development Fund

Deferred Maintenance Fund

Capital Facilities Fund

County School Facilities Fund

Bond Interest and Redemption Fund

Other Debt Service Fund

Total Non-Major
Governmental Funds

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

Total assets

$ 3,478,946 ----

$ 3,478,946

$ 7,141,923 156,328 1,318,246 643,000
-

$ 9,259,497

$ 2,629,564 645,685 49,538
-46,298

$ 3,371,085

$ 8,413,725 945,573
---

$ 9,359,298

$     606,446 -
25,000 --

$	631,446

$50,147,955 3,714 1,128,866
--

$51,280,535

$ 44,956,862 ----

$ 44,956,862

$ 52,444,163	$ -
---

$ 52,444,163	$

-	$ 169,819,584 -               1,751,300 -               2,521,650 -                   643,000 -                     46,298

-	$ 174,781,832

Liabilities and Fund Balances

Liabilities
Accounts payable	$ Due to other funds

-	$	754,761	$ -              315,384

92,808	$ -

173,233 911,410

$	620,675	$ -

9,837       $             4,720       $ -                134,824

-       $                   -       $       1,656,034 -                            -               1,361,618

Total liabilities

Fund Balances Nonspendable Restricted Committed Assigned

Total fund balances

Total liabilities and fund balances

-

-3,478,946 -
-

3,478,946

$ 3,478,946

1,070,145

643,000 180,730 -
7,365,622

8,189,352

$ 9,259,497

92,808

49,798 -
3,228,479 -

3,278,277

$ 3,371,085

1,084,643

-7,583,860 -
690,795

8,274,655

$ 9,359,298

620,675

--
10,771 -

10,771

$	631,446

9,837

-51,270,698 -
-

51,270,698

$51,280,535

139,544

-44,817,318 -
-

44,817,318

$ 44,956,862

-

-52,444,163 -
-

52,444,163

$ 52,444,163	$

-	3,017,652

-	692,798 -          159,775,715 -               3,239,250 -               8,056,417

-	171,764,180

-	$ 174,781,832

See Notes to Supplementary Information	94

Clovis Unified School District Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Non-Major Governmental Funds
Year Ended June 30, 2022

Student Activities Fund

Charter School Fund

Adult Education Fund

Child Development Fund

Deferred Maintenance Fund

Capital Facilities Fund

County School Facilities Fund

Bond Interest and Redemption Fund

Other Debt Service Fund

Total Non-Major
Governmental Funds

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

Total revenues

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

Total expenditures

$	---
6,748,158

6,748,158

-

-

--

-

--
5,526,081 -

---

5,526,081

$     8,229,407 -
423,928 (267,301)

8,386,034

5,399,842

34,652

145,227 504,541

659,359

116,526 27,632 -188,594

---

7,076,373

$                      -872,047 2,691,240 1,207,947

4,771,234

2,547,896

624,609

37,355 1,939,328

343,055

114,155 343,650 -
-

---

5,950,048

$                      -357,000 12,651,455 6,842,257

19,850,712

9,982,189

1,761,748

--

183,022

563,855 --
102,570

252,000 --

12,845,384

$	---
(15,915)

(15,915)

-

-

--

-

-1,210,275 -1,246,680

---

2,456,955

$	---
22,675,331

22,675,331

-

-

--

-

-3,282,478 -
25,807

3,715,000 -1,556,323

8,579,608

$                      --
10,772,957 (1,738,402)

9,034,555

-

-

--

-

---
4,111,670

---

4,111,670

$	-	$ -
310,591 47,197,685

47,508,276

-

-

--

-

----

37,096,613 763,387 8,565,726

46,425,726

-	$      8,229,407 -              1,229,047 -            26,850,171
(234)	82,649,526

(234)	118,958,151

-	17,929,927

-	2,421,009

-                 182,582 -              2,443,869

-	1,185,436

-	794,536 -              4,864,035 -              5,526,081 -              5,675,321

-	41,063,613 -                 763,387 -	10,122,049

-	92,971,845

Excess (Deficiency) of Revenues Over Expenditures

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

1,222,077

--

----

1,309,661

--

---
(315,384)

(1,178,814)

846,880 -

----

7,005,328

--

----

(2,472,870)

2,825,000 -

---
(1,000,000)

14,095,723

315,384 -

---
(3,336,000)

4,922,885

--

---
(407,591)

1,082,550

-1,091

129,335,000 (129,679,411)
1,107,798 (594)

(234)	25,986,306

-              3,987,264 -                      1,091

-         129,335,000 -        (129,679,411) -              1,107,798
(951)	(5,060,520)

See Notes to Supplementary Information	95

Clovis Unified School District Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Non-Major Governmental Funds
Year Ended June 30, 2022

Bond	Total Student	Adult	Child	Deferred	Capital	County School	Interest and          Other Debt           Non-Major
Activities	Charter School	Education	Development	Maintenance	Facilities	Facilities	Redemption	Service	Governmental
	Fund	 	Fund	 	Fund	 	Fund	 	Fund	 	Fund	 	Fund	 	Fund	 	Fund	 	Funds	

Net Financing Sources (Uses)

Net Change in Fund Balances

Fund Balance - Beginning

Fund Balance - Ending

-

1,222,077

2,256,869

$     3,478,946

(315,384)

994,277

7,195,075

$     8,189,352

846,880

(331,934)

3,610,211

$     3,278,277	$

-

7,005,328

1,269,327

8,274,655

1,825,000

(647,870)

658,641

$	10,771

(3,020,616)

11,075,107

40,195,591

$ 51,270,698

(407,591)

4,515,294

40,302,024

$ 44,817,318

763,884

1,846,434

50,597,729

$ 52,444,163	$

(951)

(1,185)

1,185

-

(308,778)

25,677,528

146,086,652

$171,764,180

See Notes to Supplementary Information	96

Clovis Unified School District Notes to Supplementary Information June 30, 2022

Note 1 -	Purpose of Schedules

Schedule of Expenditures of Federal Awards (SEFA)

Basis of Presentation
The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of the Clovis Unified School District (the District) under programs of the federal government for the year ended June 30, 2022. The information is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of the Clovis Unified School District, it is not intended to and does not present the financial position or changes in net position or fund balances of the District.

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

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

Food Donation
Nonmonetary assistance is reported in this schedule at the fair market value of the commodities received and disbursed. For the fiscal year ended June 30, 2022, the District had used $1,296,706 in food commodities.

SEFA Reconciliation
The following schedule provides reconciliation between revenues reported on the Statement of Revenues, Expenditures, and Changes in Fund Balances and the related expenditures reported on the Schedule of Expenditures of Federal Awards. The reconciling amount consists of Child Development: Coronavirus Response and Relief Supplemental Apportionments Act One-Time Stipend prior year revenues expended in the current year and unspent Child Development: ARP California State Preschool Program One-Time Stipend revenues received.

Description
Total Federal Revenues reported on the financial statements COVID-19, Child Development: Coronavirus Response and Relief
Supplemental Apporpriations Act - One-Time Stipend COVID-19, Child Development: ARP California State Preschool
Program One-Time Stipend

Federal Financial Assistance Listing/Federal
 CFDA Number 

93.575

93.575

	Amount	

$ 72,069,890

314,213

	(357,000) 

Total Schedule of Expenditures of Federal Awards	$ 72,027,103

97

Clovis Unified School District Notes to Supplementary Information June 30, 2022

Local Education Agency Organization Structure

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

Schedule of Average Daily Attendance (ADA)

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

Schedule of Instructional Time

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

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

Reconciliation of Annual Financial and Budget Report with Audited Financial Statements

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

Schedule of Financial Trends and Analysis

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

Schedule of Charter Schools

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

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

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

98

Independent Auditor’s Reports June 30, 2022
Clovis Unified School District

eidebailly.com

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

To the Governing Board Clovis Unified School District Clovis, California

We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Clovis Unified School District, as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise Clovis Unified School District’s basic financial statements and have issued our report thereon dated December 20, 2022.

Adoption of New Accounting Standard

As discussed in Notes 1 and 16 to the financial statements, the Clovis Unified School District has adopted the provisions of Government Accounting Standards Board (GASB) Statement No. 87, Leases, for the year ended June 30, 2022. Accordingly, a restatement has been made to the governmental activities net position as of July 1, 2021, to restate beginning net position. Our opinions are not modified with respect to this matter.

Report on Internal Control over Financial Reporting

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

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
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6051 N. Fresno St., Ste. 101 | Fresno, CA 93710-5280 | T 559.248.0871 | F 559.248.0875 | EOE

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

Report on Compliance and Other Matters

As part of obtaining reasonable assurance about whether Clovis Unified School District’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report

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

Fresno, California December 20, 2022

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

To the Governing Board Clovis Unified School District Clovis, California

Report on Compliance for Each Major Federal Program

Opinion on Each Major Federal Program

We have audited Clovis Unified School District’s compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of Clovis Unified School District’s major federal programs for the year ended
June 30, 2022. 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.

In our opinion, Clovis Unified School District complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2022.

Basis for Opinion on Each Major Federal Program

We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards); and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.

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

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

Responsibilities of Management for Compliance

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

Auditor’s Responsibilities for the Audit of Compliance

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

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

• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding Clovis Unified School District’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.
• Obtain an understanding of Clovis Unified School District’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of Clovis Unified School District’s internal control over compliance. Accordingly, no such opinion is expressed.

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

Report on Internal Control over Compliance

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such

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that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

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

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

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

Fresno, California December 20, 2022

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Independent Auditor’s Report on State Compliance

To the Governing Board Clovis Unified School District Clovis, California

Report on Compliance

Opinion on State Compliance

We have audited Clovis Unified School District’s (the District) compliance with the requirements specified in the 2021-2022 Guide for Annual Audits of K-12 Local Education Agencies and State Compliance Reporting, applicable to the District’s state program requirements identified below for the year ended June 30, 2022.

In our opinion, the District complied, in all material respects, with the compliance requirements referred to above that are applicable to the laws and regulations of the state programs noted in the table below for the year ended June 30, 2022.

Basis for Opinion

We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS), the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and the 2021-2022 Guide for Annual Audits of K-12 Local Education Agencies and State Compliance Reporting. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.

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

Responsibilities of Management for Compliance

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

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

Auditor’s Responsibilities for the Audit of Compliance

Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the District’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the 2021-2022 Guide for Annual Audits of K-12 Local Education Agencies and State Compliance Reporting will always detect a material noncompliance when it exists. The risk of not detecting a material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the District’s compliance with the requirements of the state programs as a whole.

In performing an audit in accordance with GAAS, Government Auditing Standards, and the 2021-2022 Guide for Annual Audits of K-12 Local Education Agencies and State Compliance Reporting, we:

• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the District’s compliance with the compliance requirements referred to above and performing such other procedures as we consider necessary in the circumstances.
• Obtain an understanding of the District’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the 2021-2022 Guide for Annual Audits of K-12 Local Education Agencies and State Compliance Reporting, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal controls over compliance. Accordingly, we express no such opinion; and
• Select and test transactions and records to determine the District’s compliance with the state laws and regulations applicable to the following items:

	2021-2022 K-12 Audit Guide Procedures	

Local Education Agencies Other Than Charter Schools Attendance
Teacher Certification and Misassignments Kindergarten Continuance
Independent Study Continuation Education Instructional Time Instructional Materials
Ratios of Administrative Employees to Teachers Classroom Teacher Salaries
Early Retirement Incentive GANN Limit Calculation

Procedures
	Performed	

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

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	2021-2022 K-12 Audit Guide Procedures	

Local Education Agencies Other Than Charter Schools School Accountability Report Card
Juvenile Court Schools
Middle or Early College High Schools K-3 Grade Span Adjustment Transportation Maintenance of Effort
Apprenticeship: Related and Supplemental Instruction Comprehensive School Safety Plan
District of Choice

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

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

Procedures
	Performed	

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

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

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

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

We did not perform procedures for Juvenile Court Schools because the district does not operate this type of school.

We did not perform procedures for Middle or Early College High Schools because the district does not operate these programs.

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

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

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

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

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

The Charter School does not offer an Independent Study - Course Based Program; therefore, we did not perform any procedures related to the Independent Study - Course Based Program.

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

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

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

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

Report on Internal Control over Compliance

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

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

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

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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 2021-2022 Guide for Annual Audits of K-12 Local Education Agencies and State Compliance Reporting. Accordingly, this report is not suitable for any other purpose.

Fresno, California December 20, 2022

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Schedule of Findings and Questioned Costs June 30, 2022
Clovis Unified School District

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Clovis Unified School District Summary of Auditor’s Results
Year Ended June 30, 2022

Financial Statements

Type of auditor’s report issued

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

Noncompliance material to financial statements noted?

Federal Awards

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

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

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

Identification of major programs

Name of Federal Program or Cluster

COVID-19, Elementary and Secondary School Emergency Relief Fund (ESSER)
COVID-19, Elementary and Secondary School Emergency Relief Fund II (ESSER II)
COVID-19, Expanded Learning Opportunities (ELO) Grant: ESSER II: State Reserve
COVID-19 Governor’s Emergency Education Relief Fund (GEER) COVID-19, Expanded Learning Opportunities (ELO) Grant
GEER II
COVID-19, Elementary and Secondary School Emergency Relief Fund III (ESSER III)
COVID-19, Expanded Learning Opportunities (ELO) Grant: ESSER III: State Reserve, Emergency Needs
COVID-19, Elementary and Secondary School Emergency Relief Fund III (ESSER III): Learning Loss
COVID-19, Expanded Learning Opportunities (ELO) Grant: ESSER III: State Reserve, Learning Loss
Child Nutrition Cluster

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

Auditee qualified as low-risk auditee?

Unmodified

No

None Reported

No

No

None Reported

Unmodified

No

Federal Financial Assistance
	Listing/Federal CFDA Number	

84.425D

84.425D

84.425D 84.425C

84.425C

84.425U

84.425U

84.425U

84.425U 10.555, 10.559

$ 2,160,813

No

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Clovis Unified School District Summary of Auditor’s Results
Year Ended June 30, 2022

State Compliance

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

Type of auditor’s report issued on compliance for programs

No

None Reported

Unmodified

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Clovis Unified School District Financial Statement Findings
Year Ended June 30, 2022

None reported.

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Clovis Unified School District Federal Awards Findings and Questioned Costs
Year Ended June 30, 2022

None reported.

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Clovis Unified School District State Compliance Findings and Questioned Costs
Year Ended June 30, 2022

None reported.

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Clovis Unified School District Summary Schedule of Prior Audit Findings Year Ended June 30, 2022

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

Financial Statement Findings

2021-001	30000

Internal Control Over Financial Reporting

Criteria

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

Condition

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

Effect

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

Cause

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

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

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Clovis Unified School District Summary Schedule of Prior Audit Findings Year Ended June 30, 2022

Recommendation

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

Corrective Action Plan and Views of Responsible Officials

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

Current Status

Implemented.

State Compliance Findings

2021-002	40000

Unduplicated Local Control Funding Formula Pupil Count

Criteria

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

Condition

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

Questioned Cost

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

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Clovis Unified School District Summary Schedule of Prior Audit Findings Year Ended June 30, 2022

Effect

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

Cause

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

Repeat Finding (Yes or No)

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

Recommendation

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

Corrective Action Plan and Views of Responsible Officials

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

Current Status

Implemented.

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