Ariz. Rev. Stat. § 15-210
If a school district expends or attempts to expend monies received pursuant to section 15-207 in a manner other than as directed by the state board of education or as provided by the federal grant, the state board of education shall immediately deliver to the county treasurer of the county in which such district is located written notice directing him to refuse to pay further warrants drawn against monies so provided in the fund prescribed in section 15-209. Copies of the notice shall be served upon the governing board of the school district and the county school superintendent. No further expenditures shall be made by the school district from such monies, and no further monies shall be apportioned or paid to the district until it has complied with the federal regulations and directions of the state board of education. Upon compliance to the satisfaction of the state board of education, the state board shall deliver written notice to the county treasurer and the county school superintendent and thereafter the monies may be expended as provided in section 15-206.
A.R.S. § 15-210