The Dysart Unified School District governing board on Thursday approved the district's Annual Financial Report for fiscal year 2024–25 and heard the statutory annual expenditure update on the voter-approved maintenance-and-operations (M&O) override.

The approval of the AFR meets the district's statutory deadline and starts state-level review of the district's finances, while the override update outlined how the voter-approved funding has been used and what would happen if voters do not continue the measure.

District finance staff presented the AFR and related reports, saying the maintenance-and-operations fund carried a $215.6 million budget for FY24–25 with roughly $195.1 million in expenditures and an ending fund balance of about $20.5 million. Finance staff told the board a portion of that balance is earmarked for retention stipends to be paid later in the fall.

Capital and categorical funds were also described. The unrestricted capital fund budgeted about $21.9 million for the year, with roughly $9.4 million spent and an ending balance of about $12.5 million; some of that balance represents projects and purchases—such as buses—not complete by June 30. An Emergency Building Renewal Grant carryover of about $3.4 million was identified for specific projects (Marley Park central plant replacement and Kingswood roofing). The classroom site fund had a budget near $43.5 million with about $21.3 million in expenditures; staff noted that fund supports teacher compensation and positions that meet statutory limits.

District staff summarized the estimated classroom-spending ratio for FY25 at approximately 71.6% (instruction, instructional support and student support), consistent with the prior year and above the statewide average cited by staff. Outstanding general obligation bonds were reported at roughly $38.7 million as of June 30, 2025.

Board members asked staff to clarify carryovers and the timing of payments; staff answered that encumbered purchase orders not completed by June 30 are rolled into the current year and paid when goods arrive. The board also recognized that the district had received certificates of excellence in financial reporting from ASBO International and the Government Finance Officers Association for FY24 reporting; staff said the awards will be displayed in the boardroom lobby.

On a motion to approve the annual financial report and related documents for FY24–25, the board voted in favor; the motion was seconded by Board member Drake and carried.

Board members were reminded that the AFR will be posted to the Arizona Department of Education portal and that state reviewers—Auditor General and agency staff—will perform additional reviews.

Questions raised by board members included whether the district had spent to budget (staff confirmed expenditures were below adopted budgets) and how obligated funds that arrived after June 30 are handled (encumbrances roll forward). Staff also offered to take calls from community members seeking further detail on district finances.

The district will post the AFR and supporting schedules for public review and proceed through the normal state audit and reporting cycle.