Although Nadaburg Unified School District’s administrative costs per student were similar to the average for comparable districts, the District exposed itself to increased risk of errors, fraud, and misuse of sensitive information because it did not maintain adequate controls over its expenditure processes and its computerized accounting system. The District’s transportation costs were much higher than the comparable districts’ and state averages because it must drive its high school students to schools out of the district. State-wide, Arizona districts spend 4.4 percent of available operating dollars on student transportation, whereas Nadaburg USD spent 12.6 percent for that purpose. This higher spending in transportation contributed to the District’s relatively low classroom dollar percentage of 51.8 percent. However, the District still spent $4,462 per pupil in the classroom, similar to the state average of $4,480. Plant operation costs per square foot were 18 percent higher than the average for comparable districts because of higher staffing levels and higher energy costs. Although the District has begun making some changes to reduce its energy consumption, it should also develop an energy conservation plan because its utility costs have increased substantially with the opening of its second school in fiscal year 2009 and the reduction in funding for utility costs. Lastly, the District’s Structured English Immersion (SEI) program and its Compensatory Instruction program did not meet state requirements. The District’s SEI program did not provide 4 hours of English language development to all English Language Learner (ELL) students and did not properly use the Individual Language Learner Plan, and its Compensatory Instruction program inappropriately included non-ELL students and was not limited to improving English proficiency.