The Litchfield Elementary School District Governing Board unanimously approved the district’s fiscal year 2025 annual financial report at its Oct. 14 meeting, a step the CFO said is required to meet state filing deadlines.

CFO Juan Vaughn told trustees that Arizona law requires the board to approve the annual financial report so the district can submit it to the Arizona Department of Education and the county superintendent by Oct. 15. “By approving the annual financial report tonight, the district will be able to comply with these requirements,” Vaughn said.

Vaughn reviewed key fund results: the Maintenance and Operations (M&O) fund spent 81% of its total on salaries and benefits; utilities and purchased services accounted for smaller shares. The board’s M&O override (the district’s voter-approved supplemental) totaled $11.2 million for fiscal 2025 and was spent on salaries and benefits, Vaughn said; the district used about $1.3 million of M&O carryover to support operations.

The classroom site fund — funded by state-authorized sales tax distributions — was used entirely for instructional salaries and benefits in FY25, the CFO said. Current-expenditure calculations (operating spending that exclude capital and certain programs) showed 57% of spending on instruction and 71% in classroom-related categories (instruction, instructional support, student support). Vaughn said capital spending in FY25 included Chromebook replacements, electronic curriculum purchases and completion of modular classrooms begun the prior summer.

On reserves, Vaughn reported the district ended FY25 with roughly four months of operating reserves and said that level aligns with the district’s planning assumptions. Food service operated at a small surplus in FY25; community education programs (preschool and extended day) ran a slight deficit of about $102,000, funded by the program’s fund balance.

Vaughn provided the statutory updates on override and bond programs required between Sept. 1 and Oct. 31. He said the M&O override supported teacher supplemental pay and staffing including special-area teachers, intervention coaches and nurses; Vaughn provided line-item examples (approximate override uses: $2.1 million for special-area staffing; $4.1 million for focused intervention staff; about $969,000 for nurses, athletics and recruiting). He listed supplemental stipend amounts that many employees receive from the override (for example, teachers $2,915 per year; reading specialists $2,915; instructional coaches about $2,971).

On bonds, Vaughn said the district has expended $33.8 million of $35 million issued under an earlier authorization and $4.3 million of $50 million sold under the 2023 authorization as of June 30, 2025; ongoing projects include Troy Gilbert Elementary construction, front-office remodels and playground and gym work.

Trustees discussed the report and asked clarifying questions about purchase services, administration spending trends and capital vs. operational spending. Board members praised the transparency built into the required updates and thanked staff for the work on closing FY25.

Votes at a glance
• Approve fiscal year 2025 annual financial report (agenda item): motion by Mr. Owens; second Mr. Mikes. Vote: unanimous (5–0). Outcome: approved.
• Approve out-of-state conference travel (consent item 6.14/agenda 7.2): motion by Ms. Moran; second Mr. Owens. Vote: unanimous (5–0). Outcome: approved.
• Approve consent agenda (with items 6.1 and 6.14 pulled): motion by Mr. Mikes; second Ms. Moran. Vote: unanimous (5–0). Outcome: approved (consent minus pulled items).