In fiscal year 2011, Chinle Unified School District’s student achievement was similar to peer districts’ averages, and the District’s operational efficiency was mixed, with some costs higher and some costs lower than peer districts’ averages. Chinle USD’s operational spending of $11,788 per pupil and its classroom spending of $5,492 per pupil were both much higher than peer districts’, on average. The District’s per pupil administrative costs were much higher than its peer districts’ average primarily because it employed more administrative staff and had much higher purchased service costs, particularly for travel. Additionally, the District lacked sufficient oversight of its district vehicles and related fuel usage, and lacked adequate controls over its accounts payable processing and its computer systems. The District’s plant operations costs were also much higher than peer districts’, on average, because the District maintained 69 percent more building space per student, which was likely not needed because Chinle USD operated its schools far below their designed capacities. The District’s food service program was reasonably efficient, and its transportation program had similar per mile costs to peer districts’. However, the District did not ensure that bus drivers met all state certification requirements and that it systematically performed bus preventative maintenance.