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Hackberry board approves FY26 budget revisions and seeks AFR correction after audit variance
Summary
The board approved several finance actions: revisions to the FY26 expenditure budget, a request to revise the FY24 Annual Financial Report after a discovered revenue-posting error, and noted a $78,000 variance traced to prior administration bookkeeping errors while the FY24 audit proceeds.
The Hackberry Elementary School District #3 governing board on Sept. 9 approved revisions to the FY26 expenditure budget, voted to request a revision to the FY24 Annual Financial Report (AFR) to correct revenue-posting errors, and received updates on an ongoing FY24 financial audit.
Business Manager Sam Dell told the board the County Office identified a $78,000 variance between fund balances and cash balances that tracing revealed resulted from the prior administration misapplying revenue between FY24 and FY25. After manual corrections, Dell reported the financial statements now reflect the corrected balances. He said the FY24 audit is underway and supporting documents are being compiled; some items such as 2023 conflict-of-interest forms remain outstanding.
On the FY26 budget, the board approved a revision reflecting changes after the Arizona legislative session: adjusted overall budget capacity, an updated tax rate, alignment of the auditing services budget with the board-approved contract, matching federal grant budgets to final allocations, and additional capital allocation. Dell reported cash on hand grew 2% year-over-year and that 31% of the budget remained unencumbered; he quoted current budget capacity as $245,000 but noted $100,000 will be needed for classified staff wages.
The board approved the motion to request revision of the FY24 AFR after corrective journal entries were prepared under guidance from the Auditor General and CWDL audit services; the motion passed 3-0. Routine consent items including approval of prior meeting minutes, accounts payable vouchers and payroll vouchers were approved by unanimous motions.
Board members did not take formal disciplinary action; the board recorded that corrective action plans addressing 41 Auditor General findings have been completed and uploaded and that they are awaiting a response from the Auditor General's Office.
Next procedural steps include submitting the AFR revision request and continuing to cooperate with the Auditor General's audit process.
