Interim superintendent introduced a district financial‑risk action plan after a review by the Arizona Auditor General identified multiple at‑risk measures for Sierra Vista Unified School District.
"They came down… I got a phone call or an email that I needed to set up a meeting with them to discuss a financial risk report," the interim superintendent said, describing the Auditor General’s on‑site work and notice that a public report will include Sierra Vista. The district said it has been working with auditors and that a written Auditor General report is expected in January.
The presenter told the board the district was flagged in three areas last year — student count, general fund operating margin and general fund change/fund balance — and that the number of flagged areas increased to six the current year. "We were high risk last year on our student count. We were high risk financial position, general fund operating margin, as well as financial position, general fund change, and fund balance. Those were the 3 areas," the presenter said.
As part of a root‑cause analysis, district staff listed contributing factors: an increase in homeschooling and ESA participation in the county that reduces district enrollment and weighted student count; lower local birth rates shrinking incoming cohorts; and a pattern of moving state capital or additional assistance funds into maintenance and operations to preserve staffing. The presenter said those moves maintained services short term but depleted capital resources and contributed to the district’s financial vulnerability.
The board was told the presenter drafted an action plan under a state template, solicited cabinet feedback and will update the plan with final Auditor General guidance before Friday of that week. Short‑term district actions described include personalized outreach to withdrawn/homeschool families, expanded open‑house and enrollment efforts, marketing of signature programs, expanded early‑childhood recruitment, customer‑service improvements and clearer curriculum transparency to rebuild community trust.
The board did not vote on the plan at the meeting; administration said the plan is being finalized with the Auditor General and will be shared with the governing board. No legal receivership was reported; the presenter said the district is not in receivership but acknowledged an urgent need to address the identified financial risks.