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Hackberry board seeks AFR correction, revises FY26 budget after $78,000 variance discovered
Summary
The board voted to request a revision to the FY24 Annual Financial Report after a $78,000 variance was identified and approved changes to the FY26 expenditure budget to reflect updated tax rates, grant allocations and auditing contract alignment.
The Hackberry Elementary School District #3 Governing Board on Sept. 9 approved a formal request to revise the FY24 Annual Financial Report (AFR) after the Mohave County Educational Services Center and the County Office identified a $78,000 variance between fund balances and cash balances.
Business Manager Sam Dell told the board the discrepancy was traced to prior administration revenue postings shifting receipts between FY24 and FY25; after manual corrections the report now reflects accurate balances. Dell also reported that the FY24 corrective action plan addressing 41 audit findings has been completed and uploaded to the Auditor General’s Office, though some supporting documents (for example, certain 2023 conflict-of-interest forms) remain outstanding and are being located.
Separately, administrators presented revisions to the FY26 expenditure budget required because the adopted budget had been prepared before the end of the Arizona legislative session. Revisions included an updated tax rate, alignment of the auditing service budget to the board-approved contract, adjustments to federal grant budgets to match final allocations and added capital budget capacity. The board voted to revise the FY26 budget on a motion by Valerie Grimes, seconded by Pam Adams (Passed 3-0).
Dell reported that, despite higher-than-normal start-of-year expenditures, cash on hand grew 2% year-over-year and 31% of the FY26 budget remained unencumbered at the reporting date. He provided a current budget capacity figure of $245,000 but noted that roughly $100,000 will be required for classified staff wages, leaving a net available amount that the minutes record as -$145,000 (reflecting allocation needs). The board approved a motion to request AFR revision (motion by Pam Adams, seconded by Valerie Grimes; Passed 3-0).
The board requested continued work to compile and submit outstanding audit documentation and to coordinate follow-up with the Auditor General’s Office and the Mohave County Educational Services Center. The minutes record no formal disciplinary or personnel actions related to the prior administration’s postings.
