In fiscal year 2010, Ft. Thomas Unified School District’s student achievement was much lower than peer district and state averages, and it operated inefficiently overall, with most costs higher than peer districts’. The District’s administrative costs were much higher than peer districts’ because it employed more administrative positions than the peer districts, on average. In addition, the District lacked sufficient accounting controls. For example, the District lacked a delayed payroll system, and some purchases were made without prior approval. The District’s plant operations costs were high, and despite having two schools with excess space, the District is building a new school. Food service costs per meal were higher than peer districts’, and the District spent more than $96,000 of its Maintenance and Operation Fund monies to subsidize the program. Food service costs were high because the District did not enforce food service vendor contract requirements, and it provided free meals to all students even though 18 percent of students did not qualify for free or reduced-price meals through the National School Lunch Program. Although transportation costs were higher per pupil, the program was efficient with lower costs per mile and per rider than peer districts’.