District financials largely on track as Attorney General schedules on-site audit review

Baboquivari Unified School District #40 officials told the governing board Sept. 9 that the district’s fiscal year 2025 spending is generally on track and that the Arizona Attorney General’s office has opened a compliance review.

Clementina Carlo, the district’s business officer, presented the financial report through Aug. 31, 2025, saying that overall “77.39% of the budget for all funds was expended, leaving a budget balance of 22.61%.” She also told the board the district received a 90‑day letter from the Attorney General and that staff “will be meeting with the AG’s office on September the 18th for a status review entrance meeting and they will also be providing us a list of documentations that they're going to be wanting before they come out on September 29th through October 2nd.”

Superintendent Ruin Diaz thanked staff across departments for completing invoicing and recordkeeping ahead of the review, saying the work reflected close cooperation among the finance team, directors and principals. Carlo said she will complete the fiscal year 2025 annual financial report for board approval in October.

The board asked clarifying questions about negative line items that appear within some departmental reports and whether those represent districtwide allocations or timing differences tied to grant accounting; staff explained some negative figures arise when grants or impact aid are recorded to other accounts and the net district position remains positive. Board members asked for continued transparency and documentation ahead of the AG’s site review.

The board did not take formal new financial actions during the meeting; staff said follow‑up materials and the annual financial report will return to the board at an upcoming meeting.