Chino Valley Unified School District business officials summarized budget activity and presented the district’s FY 2024–25 Annual Financial Report (AFR) to the board on Oct. 1, saying mid-course accounting adjustments were made to meet the board’s 4% operating-fund reserve policy.

Why it matters: The AFR is a statutory filing to the Arizona Department of Education; the district said failing to submit timely and accurate AFRs could trigger a freeze of grant reimbursements and create administrative burdens.

Assistant superintendent/finance staff provided an overview of cash funds reported in the AFR. Highlights included: classroom-site funds that began the year at about $1.5 million and ended the year with roughly $1.0 million after $2.2 million in expenditures; tax-credit donations that produced roughly $105,000 in revenue and were nearly balanced against extracurricular expenses; and a building-renewal/grant program that brought large capital revenues and spending (noted as HVAC and other projects) that resulted in substantial year-to-year capital activity.

Business officials told the board that summer expenditures for adjacent-fire-lane/asphalt projects hit the 2025–26 ledger and that some capital activity required revising the budget early in the fiscal year; the staff said they anticipate a budget revision in January or February when bids are finalized. The board was briefed that the Department of Education requires the AFR by Oct. 15 and that a missing AFR can cause the department to freeze grant reimbursements.

To meet the district’s reserve policy (4% of operating fund) for FY24–25, staff said they reclassified roughly $135,000 of prior-year expenses into an appropriate fund (school-to-work program and M&O expenses) after coordination with the Department of Education and the Auditor General’s office. That corrective action increased the district’s carryforward from about $700,000 to roughly $911,000, which staff said achieves the board’s 4% target.

The board voted to approve the financial reports for the period ending Sept. 30 and then approved the FY24–25 Annual Financial Report as presented.

What the board approved (motions recorded in meeting minutes): voice votes to approve the Sept. 30 financial reports and to adopt the FY24–25 AFR after the described reclassifications. The transcript records board members responding “Aye” when asked for approval; no roll-call vote tally with individual board-member names was recorded in the transcript.

The business office said it will return with a proposed budget revision in early 2026 if additional bid results require adjustments. All numbers cited at the meeting were presented by the district business official in the Oct. 1 meeting packet and on the AFR documents.