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SUMMARY
The Office of the Auditor General has conducted a performance audit of the Creighton Elementary School District pursuant to A.R.S. §41-1279.03(A)(9). This performance audit examines five aspects of the District's operations: administration, student transportation, plant operation and maintenance, expenditures of sales taxes received under Proposition 301, and the accuracy of district records used to calculate the percentage of dollars spent in the classroom.
Administration (see pages 5 through 10)
Creighton ESD's fiscal year 2008 per-pupil administrative costs of $843 were 22 percent higher than comparable districts' average per-pupil costs of $690. The higher costs were primarily due to higher staffing levels, higher salaries, and paying the full health insurance premiums for all full-time employees and for the dependents of some administrators. Additionally, the District spent over $123,000 of public monies on meals for staff and Governing Board members, did not maintain adequate controls over its accounting and payroll system which resulted in a possible gift of public monies, and did not adequately safeguard sensitive student and district information.
Student transportation (see pages 11 through 16)
Creighton ESD spent more on salaries and benefits for transportation staff and more on fuel than comparable districts, on average. As a result, the District subsidized the transportation program with over $658,000 in fiscal year 2008. The higher salary and benefit costs were primarily due to employing more office staff and bus aides and paying a larger amount of driver overtime. The District's higher supply costs may be due to a possible theft of fuel from the District's storage tanks. The District could not account for 8,700 gallons of missing fuel and its fuel tracking system showed fuel pumped in the middle of the night and was occasionally shut down overnight. Additionally, the District's failure to follow school bus loading and unloading policies, required by the Department of Public Safety's Minimum Standards, put students' safety at risk. Lastly, the District did not maintain adequate documentation to demonstrate that its school buses had received required, systematic preventative maintenance.
Plant operation and maintenance (see pages 17 through 18)
Creighton ESD's plant costs per square foot were similar to comparable districts' but its per-pupil costs were 12 percent higher than the comparable districts' average because it operated more square footage per student. The additional square footage was due in part to the District operating its schools at 80 percent of capacity, on average. In the last 4 years, the District's enrollment has declined by 13 percent. If student enrollment and the corresponding building capacity usage continue to decline, the District will need to consider ways to reduce its excess building capacity.
Proposition 301 monies (see pages 19 through 22)
In November 2000, voters passed Proposition 301, which increased the state-wide sales tax to provide additional resources for education programs. Creighton ESD spent most of its Proposition 301 monies according to its plan. However, the District paid Proposition 301 monies to two ineligible employees and paid performance monies to all employees for one of the goals without knowing whether it was met.
Classroom dollars (see pages 23 through 25)
Creighton ESD spent a similar dollar amount in the classroom as comparable districts', but its 52.1 classroom dollar percentage is far below the comparable districts', state, and national averages. The District was able to do this because the higher poverty rate of its students entitled the District to receive significantly more in federal grant revenues. The District spent part of these additional monies on teacher training and other activities associated with assisting students or the instructional staff. However, this audit identified inefficiencies in administration and transportation, and the need to monitor future years' plant operations' costs, so savings could be achieved in these operational areas and redirected towards the classroom.
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