ORO VALLEY, Ariz. (KGUN) — A state audit of Arizona State Schools for the Deaf and the Blind (ASDB) has uncovered a series of financial management problems that may have cost the school millions of dollars — even as auditors found no evidence of fraud or criminal wrongdoing.
Arizona's Auditor General conducted a forensic and performance audit of ASDB covering 2022 through 2024, examining financial records, student documentation, and more.
Among the most significant findings: ASDB failed to collect more than $2 million it was owed in vouchers and services-related revenue, and another $2.5 million in potentially recoverable Medicaid claims went uncollected.
On top of those uncollected funds, officials estimate the agency may need to refund nearly $456,000 because of duplicate, excess, or unsupported payments.
The audit's findings come amid significant upheaval at the school. ASDB closed its Westside Campus and moved students to the new Copper Creek Campus following a $2.6 million budget deficit.
Auditors found the move lacked transparency and that the school didn't adequately assess its impact on students.
The campus move also prompted a lawsuit from the Arizona Department of Education, which alleges the school violated special education law for blind and visually impaired students.
Liza Smith, president of the ASDB Parent Student Organization, said families have struggled to get answers from school leaders about recent changes.
"My concern is how ASDB's current administration is working with staff." Smith said.
Smith said her experience mirrors what she has heard from other families.
"I've heard similar experiences from other families, that the communication is greatly reduced this year," Smith said. "It's really unfair to those who have structured their lives around that setting."
For Smith, the reduced communication has made even basic information about her daughter's education hard to come by.
"In reality, I don't know who my daughter's homeroom teacher is. That information came from my daughter."
Smith said.
In all, the Auditor General issued 75 recommendations for ASDB, covering a broad range of improvements — from stronger background checks for staff and fixes to enrollment and billing systems, to greater transparency around major institutional decisions.
ASDB gave the following statement to KGUN 9:
“The recently completed audits of ASDB found there was no evidence of fraud or intentional wrongdoing. ASDB will continue to do what is statutorily required for a state agency and will make appropriate changes to our current policies to ensure all audit findings are addressed.”
ASDB did not address KGUN's questions on their finances directly, but did acknowledge the fiancial mismanagement in the audit, working on new systems to prevent future losses.
The Auditor General's office plans to follow up on ASDB's progress within six months.
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JJ McKinney joined KGUN 9 in July of 2025 as a multimedia journalist. He graduated from Colorado State University in May of 2025 with a degree in journalism and media communications and a minor in law. With a background in investigative reporting and documentary filmmaking, JJ is dedicated to giving a platform to the voices of his community. Share your story ideas and important issues with JJ by emailing jj.mckinney@kgun9.com or by connecting on Instagram, Twitter, or Facebook.
