In fiscal year 2012, Scottsdale Unified School District’s student achievement was similar to peer districts’, on average, but it compared less favorably in operational efficiencies. The District’s food service program operated efficiently with a cost per meal that was lower than the peer district average. However, the District’s administrative costs were higher than peer districts’, primarily because it employed more administrative staff. In addition, the District inaccurately reported its costs on its Annual Financial Report and it lacked sufficient computer controls. The District’s plant operations cost per pupil was higher than peer districts’, on average, because the District maintained more square footage per student than the peer districts’ and many of its schools operated far below their designed capacities. Further, the District’s transportation cost per mile was much higher than the peer districts’ average, in part, because of inefficient bus routes.

The Arizona Department of Transportation was authorized in 1996 to administer a State Infrastructure Bank under a cooperative agreement with the Federal Highway Administration. The Highway Expansion and Extension Loan Program (HELP) was established. The financial statements present only the funds comprising the Fund and are not intended to present fairly the financial position or results of operations of the Department.

The HELP program is meant to be a funding tool to accelerate needed highway projects throughout the state. Board Funding Obligations are an important part of the HELP capitalization and the current stress on the State's General Fund has impacted our ability to use BFOs as a funding source for new loans. Though $140 million of BFOs are authorized by statute to capitalize the HELP, the State Treasurer was required to call all outstanding BFOs in April 2009. Consequently, the State Transportation Board and the Department have suspended the HELP program given the uncertainty of a long term funding source.