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Higley board approves fiscal 2025 annual financial report; district outlines budget trends and carryforward
Summary
The board received the district’s fiscal 2025 Annual Financial Report (AFR) showing roughly $175 million in expenditures for the year, a majority spent on instruction, and approved the AFR by unanimous vote.
Higley Unified School District officials presented the fiscal 2025 Annual Financial Report and the governing board voted to approve the report and attachments at the meeting.
The district reported more than $175 million in total expenditures for the year ending June 30, 2025, and said 58.4% of spending was for instruction and classroom support. Other categories in the AFR included plant services (11.5%), administration (9.7%), student support (7.3%), instructional support (5.3%), transportation (4.5%) and food service (3.3%). The board approved the AFR by a 5–0 vote.
What the AFR and presentation said
Finance staff described how the Auditor General’s forms were used to compile the AFR and noted a consolidation of the food service AFR into the main AFR this year. The district reported more than 366,000 accounting transactions and explained the difference between budgeted (state controlled) funds and cash‑controlled funds.
The presentation highlighted carryforward balances and recent trends. District staff said the M&O carryforward declined compared with the COVID era peak and that fiscal 2025 carryforward for M&O was just over $21 million (district estimate). Staff also explained a difference between the ledger (cash balance) and the budget balance: the cash balance for M&O may appear higher because it includes county interest that is not budgeted for spending.
Board discussion
Board members asked for clarification about the difference between cash balances and budgeted carryforward and about how the August budget report in the consent agenda related to the finalized FY25 AFR figures. Finance staff said the FY25 closing numbers will be reflected in a December budget revision and noted auditors will be on site in the coming weeks to finalize audits and any required adjustments.
A staff member noted that auditors Heinfeld‑Meech (contracted) prepare the independent audit and that the district pays a separate application fee to the Association of School Business Officials (ASBO) to seek the “Recognition of Excellence in Financial Reporting” after the audit is completed; the fee covers the certification application, not the audit itself.
Why it matters
The AFR is the statutory, audited accounting of district finances and is used by the Auditor General and other state reviewers to compare districts over time. The board’s approval of the AFR completes the district’s fiscal year reporting cycle and allows routine budget revisions and public posting required by statute.
Ending
The finance team said it will upload the AFR and supporting documents to the district website and return to the board with any audit adjustments after the auditors complete their on‑site review.
