Peoria Unified School District staff told the governing board on Tuesday that the district's 2024–25 Annual Financial Report (AFR) shows increased state revenue and near-complete spending of federal COVID-relief (ESSER) awards.

The presentation and subsequent board approval were led by Marcy Rodriguez, who said, “the annual financial report is required to be presented to the governing board in our community annually.” The report will be submitted to the Arizona Department of Education and posted on the district website.

Why it matters: the AFR frames how the district plans staffing, capital work and classroom investments. Rodriguez noted several one‑time and ongoing state allocations that increased funding between 2019 and 2024, including a one‑time legislative infusion, higher capital per‑pupil funding, and larger classroom site fund distributions—amounts the district has used to raise employee compensation and address facility needs.

Key facts from the presentation: salaries and benefits remain the largest expenditure category. Rodriguez showed a 33.6 percent increase in teacher compensation between 2019 and 2024 and described how classroom site funds have been used for teacher retention, academic intervention and other school priorities. She reported $23 million in districtwide carryover at year‑end, lower than a previously projected $26 million.

Federal relief review: Rodriguez summarized ESSER spending across the multi‑year grant and said the district spent about 98.7 percent of the $96 million award. She told the board the remaining unspent funds in some small ESSER sub‑accounts were the result of program changes, vendor compliance issues or timing restrictions tied to federal accounting rules.

Board follow‑ups and direction: Trustees approved the AFR by voice vote and requested staff provide more detail on two items: (1) a coding issue that left about $793,000 in ESSER‑eligible spending unreimbursed and (2) where specific ESSER‑funded positions (notably several social‑work hires raised in public comment) were ultimately paid from. Clerk Toby Azure asked whether the Arizona Department of Education refused a revision request; Rodriguez and staff said ADE reviewed the request but declined to allow a post‑closing account code change.

What happens next: The board approved submittal of the AFR to ADE and authorized publication on the district site. Staff said they will bring a revised, audited carryover figure to the December budget revision and will provide the board the requested follow‑up details via a Friday report.

Sources and immediate next steps: the board approved the AFR and directed staff to return with the detailed ESSER follow‑up and an itemization of other federal relief accounts the district did not fully spend.