Auditor General identifies financial‑control weaknesses, high‑risk budget measures at Liberty Elementary District

The Arizona Auditor General's office presented the results of a recent performance audit and the annual financial‑risk analysis for Liberty Elementary District, identifying several high‑risk financial measures and systemic control weaknesses that the office said need correction.

Megan Heager, director of the Auditor General's accountability division, told the board that Liberty was identified for three high‑risk measures, including a sharp drop in operating budget limit reserves. "Liberty's reserves decreased by 71.6% from fiscal year 2023 to 2024," she said, and that decline was a principal signal prompting the office's designation.

The office also reported the district's FY24 general fund spending exceeded revenues, producing a negative operating margin. Heager recounted that the FY24 figures showed roughly $34.9 million in general‑fund revenues compared with $37.3 million in spending — a gap the Auditor General characterized as a principal contributor to a roughly $2 million decrease in the district's general‑fund balance for FY24.

Performance audit findings

A contractor called Sjoberg Evashank Consulting presented findings from a performance audit of district operations in four areas: administration/financial oversight, plant operations, food service and transportation. Nicole Dyer of Sjoberg Evashank summarized the audit's chief problems:

- Internal controls and procurement: The audit found purchase…