Clarkdale-Jerome Elementary School District operated efficiently with lower per-pupil operational costs than peer districts, and its student achievement was much higher than both the peer districts' and state averages, and was among the highest in the State. The District's administrative costs were 30 percent lower than peer districts' because it employed fewer administrative staff, with some employees handling more than one position. For example, the superintendent also acted as the school principal, and a teacher monitored and supported the District's computers and computer networks. The District's plant operation costs per square foot were similar to the peer districts' average, but its cost per student was 18 percent lower primarily because the District operated 15 percent less square footage per student than the peer districts. It did this by operating a shared cafeteria/gymnasium while some of the peer districts had separate facilities. Clarkdale-Jerome ESD's food service costs were 11 percent lower than peer districts' primarily because of lower staffing levels, and its student transportation program operated efficient routes. The District also obtained a much lower labor rate for repairs to district buses and vehicles through an intergovernmental agreement with a local government. The District's teachers earned higher salaries, averaging $51,700 while peer district teachers averaged $44,600. The District's teachers had higher salaries primarily because they averaged 4 more years of teaching experience, and it paid its more experienced teachers about 10 percent more than peer districts paid. Almost a third of the teachers have been with the District for 20 or more years. However, the District needs to address inadequate controls over its expenditure processing and accounting system to help decrease the risk of errors, fraud, and misuse, such as processing false invoices or adding nonexistent vendors or employees.