Fountain Hills Unified School District is doing well this year, but there’s always room for improvement, according to the recent Auditor General Report.

Executive Director of Business and Support Services Lisa Martinez presented an update at the Feb. 12 School Board meeting, saying that implementation of suggested improvements are ongoing.

“We will continue to discuss these issues for some time to come,” Martinez said.

“All in all, it’s a pretty positive report. We’ve already addressed or have begun to address many of the areas outlined in the report and will continue to work on all areas.”

The report was broken down into five main findings, the first of which being that the “district has addressed some of its higher administrative costs but could do more.”

Martinez said that a continued drop in enrollment could be partially to blame for this perceived discrepancy, saying that the district’s administrative reorganization over the past couple of years could be partially offset by continually falling student numbers.

Specifically, the first finding states that FHUSD “should continue to review its administrative costs and determine how administrative costs can be reduced.”

Since the report was issued, Martinez pointed out that cuts have been made to two assistant superintendent positions, a principal reconfiguration, office personnel reductions and alterations to the director of technology position.

Finding two states that the district’s closure of the old Four Peaks campus “did not realize all potential savings,” specifically that the district should “set thermostats at the recommended temperatures while unoccupied.”

Martinez stated that the district implemented a “soft closure” recommended setting of 88 degrees but can reevaluate.

Finding three stated that, despite having a “reasonably efficient transportation program,” it still needed to be subsidized by $105,000, something that Martinez said could be altered with corrected fiscal year 2010 transportation reports, more accurate report data and transportation account records.

Finding four stated that FHUSD had reduced classroom spending and shifted monies to other operational areas, which Martinez stated has already been addressed, as administrative and operational cuts allowed monies to be shifted back into the classroom.

Finally, finding five stated that FHUSD should strengthen its purchasing and computer controls, another area Martinez stated has already been addressed since the report was made.

A pair of “other findings” were also provided, beginning with “District did not accurately report costs.”

Broken into specific areas, Martinez said that the district corrected salary/benefit account codes and capital/bond account codes, and that FHUSD continues “to work on accounts payable account codes and will implement new codes with the fiscal rollover.”

Finally, the report stated that FHUSD did not sufficiently oversee its food service contract and that it should ensure that any price increases follow the terms of its contract.

“In fiscal year 2012, the district awarded a new food service contract,” Martinez explained.

“The district reviewed the Consumer Price Index used in the terms of the contract with both the food service management company and with the Arizona Department of Education.”

However, documentation has been maintained with the current contract in the event an adjustment to meal prices is required.

Martinez stated that the district has also implemented new invoicing procedures with the food service management company to ensure accurate billing.