In fiscal year 2011, Chino Valley Unified School District’s student achievement was similar to peer district and state averages, and its operational efficiencies were mixed with some costs higher and some costs lower than peer districts’ averages. The District’s per-pupil administrative costs were slightly higher than peer districts’ because the District employed more administrative positions per pupil. The District’s plant operations, food service, and transportation programs operated reasonably efficiently, with cost measures such as cost per square foot, cost per meal, and cost per mile that were similar to or lower than peer districts’ averages. However, the District needs to improve controls over access to critical information systems and strengthen controls over its fuel purchase cards.

In fiscal year 2011, Patagonia ESD’s student AIMS scores in math and reading were lower than peer districts’ averages, and its writing scores were higher. Patagonia UHSD’s scores were higher in all three subject areas than peer districts’, on average. Because the two districts operate essentially as one district, auditors considered their operations combined when determining operational efficiency. The districts saved money by operating together but could do more to further reduce costs. The combined District’s cost-efficiency in noninstructional areas was mixed, with some costs higher and some costs lower than peer districts’, on average. However, the District needs to strengthen controls over multiple operational areas, including payroll and accounts payable processing and computer system access and security. The District also needs to improve bus preventative maintenance, ensure bus driver certification requirements are met, and better control fuel inventory.

In fiscal year 2011, Double Adobe Elementary School District’s student AIMS scores for math and reading were lower than the peer districts’ averages and no writing scores were reported. These scores do not include 5th and 6th grade students’ scores, which were invalidated because a teacher violated test security requirements. The District operated relatively efficiently overall. Double Adobe ESD’s administration, plant operations, and transportation program operated with lower per pupil costs and other costs, such as cost per square foot and cost per mile, than peer district averages. The District did not have any food-service related costs because it has not operated a food service program for at least the past 30 years. Although relatively efficient, the District needs to strengthen its accounting and computer controls as well as controls over its fuel inventory. Further, the District misreported its transportation route mileage and was overfunded by a combined $263,705 for fiscal years 2011 and 2012.

In fiscal year 2011, Pearce Elementary School District’s student AIMS scores were similar to peer districts’ averages. Although per pupil costs were high in some operational areas, the District was reasonably efficient overall. Pearce ESD’s per pupil administration costs were similar to the peer districts’ average, and although its plant operations, food service, and transportation program operated with higher per pupil costs than peer districts, these areas operated in a reasonably efficient manner considering factors such as the age of the District’s buildings, number of meals served, and transportation miles driven. Although relatively efficient, the District should strengthen some of its accounting controls, including ensuring proper separation of duties for its payroll and purchasing processes and ensuring purchases are properly approved before they are made. The District should also strengthen some of its computer controls, such as the requirements for network passwords.

In fiscal year 2011, Kingman Unified School District’s student achievement was similar to peer district averages, and it operated efficiently with lower costs than peer districts’, on average. The District operated its administration with lower per pupil costs because it employed fewer administrative staff per pupil than peer districts, on average. In addition, the District’s plant operations cost per square foot and food service cost per meal were lower than peer districts’ averages. The District’s transportation program cost per pupil was higher than the peer districts’ average, but the program was efficient, with lower per mile costs. However, the District should improve some of its administrative practices. In particular, the District should strengthen controls over its cash handling, culinary arts program, and computer network and systems.

Arizona public school districts' dollars spent in the classroom. In November 2000, voters approved Proposition 301, which increased the State’s sales tax from 5 percent to 5.6 percent to provide additional money for educational programs. The enabling legislation for Proposition 301 requires the Auditor General to “. . . monitor school districts to determine the percentage of every dollar spent in the classroom by a school district.” This report presents our analysis of the percentage of dollars spent in the classroom for the most recently completed school year.

In fiscal year 2011, Window Rock Unified School District’s student achievement was similar to peer districts’ averages overall, but the District operated inefficiently with much higher costs in most operational areas. The District’s per pupil administrative costs were much higher than peer districts’, and it lacked adequate controls over its vehicles, purchasing, cash handling, and computer systems. The District’s plant operations costs were also much higher than peer districts’ because the District maintained substantially more building space per student, which was likely not needed because Window Rock USD operated its schools far below their designed capacities. The District’s food service costs were higher than peer districts’ primarily because the District had high food supply costs, likely from not taking advantage of available federal food commodities. This resulted in the District having to subsidize the program with more than $108,000. Lastly, the District’s spending has shifted away from the classroom.

In fiscal year 2012, St. David Unified School District’s student achievement was much higher than peer districts’, on average, and the District was reasonably efficient in most operational areas. The District’s administrative costs were much lower than peer districts’, but the District lacked sufficient accounting and computer controls. The District’s plant operations and transportation program were reasonably efficient overall. However, the District needs to accurately determine and report to the Arizona Department of Education its bus ridership information to help ensure the District is properly funded and to allow it the ability to calculate and monitor rider-based transportation performance measures. The District’s food service program was inefficient, with a cost per meal that was much higher than the peer districts’ average primarily because of overstaffing and inefficient purchasing practices. As a result, the District spent $44,110 of its Maintenance and Operation Fund monies to subsidize the program.

In fiscal year 2012, Salome Consolidated Elementary School District’s student AIMS scores were lower than peer districts’ averages in three of four areas tested—math, reading, and science. Although the District’s per pupil costs were high in some operational areas, the District was reasonably efficient overall. The District’s administrative operations were reasonably efficient, but it lacked adequate controls over its payroll, purchasing, cash collections, and computer network and systems. The District’s plant operations were also reasonably efficient, and its food service costs were lower per meal than peer districts’ averages, but it had to subsidize its food service program, in part, because of its participation in a special National School Lunch Program provision. The District’s transportation program was also reasonably efficient with higher costs per mile but lower costs per rider. However, the District needs to improve controls over its fuel inventory and ensure that its bus drivers meet all certification requirements.

In fiscal year 2012, Isaac Elementary School District’s student achievement was similar to peer district averages, and the District’s operational efficiencies were mixed, with much higher administrative and plant operations costs than peer districts’ averages but lower food service costs. Between fiscal years 2007 and 2012, the District decreased its classroom spending while it increased nonclassroom spending, primarily for administration and plant operations. At the end of fiscal year 2011, the District closed two schools to reduce costs, but its administrative and plant operations costs remained high, partly because of higher staffing levels. The District’s transportation program operated efficient bus routes but had much higher costs per mile and per rider than peer districts’, partly because it operated a smaller program but also because it offered more generous benefits. Finally, the District lacked adequate controls over user access to its computer network and systems.