In fiscal year 2011, Patagonia ESD’s student AIMS scores in math and reading were lower than peer districts’ averages, and its writing scores were higher. Patagonia UHSD’s scores were higher in all three subject areas than peer districts’, on average. Because the two districts operate essentially as one district, auditors considered their operations combined when determining operational efficiency. The districts saved money by operating together and sharing staff and a primary campus, but could do more to further reduce costs as their combined cost-efficiency in noninstructional areas was mixed, with some costs higher and some costs lower than peer districts’, on average. The District’s administrative costs were slightly higher because it employed slightly more administrators and school and business office support staff. Further, the District operated two separate campuses despite both campuses operating below 25 percent of full student capacity. Downsizing to one campus and reducing excess building space would save money in multiple operational areas and increase available money for classroom spending. Additionally, the District lacked sufficient controls over multiple operational areas, including controls over its payroll and accounts payable processing and student information and accounting systems. The District also needs to improve bus preventative maintenance, ensure bus driver certification requirements are met, and better control fuel inventory and facility keys.