In fiscal year 2011, Ash Creek Elementary School District’s student AIMS scores were lower than peer districts’ and state averages, and its operational efficiencies were mixed. Although Ash Creek ESD spent more per pupil in each of its nonclassroom operational areas than peer districts, most of its operations were reasonably efficient for its size. The District’s costs were higher per pupil primarily because it served fewer students. Although Ash Creek ESD’s per-pupil administrative costs were high, auditors did not identify any overstaffing or unusually high salaries. Similarly, the District’s per-pupil plant operations costs were high primarily because the District maintained more square footage per student than peer districts, but there is little the District can do to reduce the excess square footage because it has only one primary building. The District’s food service costs were much higher than peer districts’; however, in fiscal year 2012, the District began taking steps to reduce the program’s costs and improve recordkeeping and other procedures. The District’s transportation costs were mixed with similar per-mile costs and much higher per-rider costs because the District drove more miles per rider. However, the District needs to improve its transportation program’s recordkeeping and also improve controls over payroll and purchasing processes, as well as its computer network.