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Santa Cruz Elementary District told it will be placed on Auditor General's high financial risk list over frozen taxes, negative balances
Summary
District staff told the board that the Arizona Auditor General will place Santa Cruz Elementary School District #28 on a "high financial risk" list because of frozen tax revenue and negative cash balances the staff attributed to county embezzlement; the board was told a virtual Auditor General report will appear at the next meeting.
The Santa Cruz Elementary School District Governing Board was told Jan. 20 that the Arizona Auditor General's Office will place the district on its high financial risk list after staff said the district has frozen tax collections and negative cash balances attributed to county embezzlement.
Mrs. Denisse Melendez reported to the board that the Auditor General contacted the district and that the district will be placed on a high-risk list because of the frozen taxes and negative cash balances. The board did not vote on a remedial plan at the meeting; Melendez's report signaled increased oversight and monitoring could follow.
Superintendent and Principal Ms. Romero told the board the district's current enrollment is 124 students and that the district sent a letter to families saying it has no intention of closing or merging with another district. The board noted a virtual Arizona Auditor General Finance Report is scheduled for the next meeting.
Board members asked for and recorded routine budget approvals and will consider the Auditor General update and facility information at the February meeting, which the board set for Feb. 10, 2026.
