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>> GREAT. IT IS 4:31 APPLE STANDARD TIME.

[1. Notice and Return]

[00:00:06]

I GUESS I NEED TO GOOD AFTERNOON AND WELCOME TO THE AUDIT COMMITTEE MEETING OF THE DALLAS INDEPENDENT SCHOOL DISTRICT BOARD OF TRUSTEES.

PLEASE STAND AND JOIN US FOR A MOMENT OF SILENCE,

[2. Moment of Silence and Pledge of Allegiance]

AND PLEASE REMAIN STANDING FOR THE PLEDGE OF ALLEGIANCE AND SALUTE TO THE TEXAS FLAG.

THANK YOU.

>>

>> ALL RIGHT. THE FOLLOWING COMMITTEE MEMBERS ARE IN ATTENDANCE,

[3. Acknowledgements]

DUSTIN MARSHALL IS HERE IN PERSON.

HAVE WE BEEN JOINED BY TRUSTEE JOHNSON YET?

>> NO, SIR.

>> I SEE TRUSTEE FOREMAN.

IF THERE ARE ANY TRUSTEES, PLEASE LET ME KNOW.

I DON'T THINK THAT THERE ARE.

WE'RE JOINED REMOTELY BY OUR SUPERINTENDENT OF SCHOOLS, DR. MICHAEL HINOJOSA, WE ALSO HAVE TONY STEVENS AND CHRIS LEWIS. THANK YOU FOR BEING HERE.

OUR NON-VOTING COMMITTEE MEMBERS AND I MET WITH FLORENCE COMMITTEE CHAIR.

ON MARCH 16TH, 2020, GOVERNOR GREG ABBOTT GRANTED A REQUEST BY ATTORNEY GENERAL PAXTON TO TEMPORARILY SUSPEND AN UNLIMITED NUMBER OF OPEN MEETINGS LAWS TO THE EXTENT NECESSARY TO ALLOW TELEPHONIC OR VIDEO CONFERENCE MEETINGS IN RESPONSE TO THE CORONA VIRUS COVID-19.

IN ACCORDANCE WITH THOSE SUSPENDED RULES, WE CERTIFY THE FOLLOWING, NOTICE OF THIS MEETING HAS BEEN POSTED ONLINE FOR AT LEAST 72 HOURS, WE HAVE A QUORUM IN ATTENDANCE AT THIS MEETING, EITHER PHYSICALLY OR TRUSTEES ARE IN ATTENDANCE SIMULTANEOUSLY THROUGH VIDEO CONFERENCE, VIA ZOOM, WE ARE MEETING BY USE OF ZOOM, MEETING SOFTWARE APPLICATION WHICH ALLOWS TWO-WAY COMMUNICATION FOR MEMBERS OF THE PUBLIC.

MEMBERS OF THE PUBLIC WILL FOLLOW THE INSTRUCTIONS ON THE MEETING NOTICE FOR REGISTERING TO SPEAK DURING THE PUBLIC COMMENT PORTION WILL BE ALLOWED TO ADDRESS THE BOARD FOR THREE MINUTES AND PHYSICALLY PRESENT OR UNMUTED FOR THREE MINUTES TO SPEAK.

ALL OTHER MEETING PROCEDURES WILL ADHERE TO BOARD-ADOPTED PROCEDURES TO THE EXTENT PRACTICABLE.

AN AUDIO RECORDING OF THIS MEETING IS BEING MADE AND WILL BE AVAILABLE TO THE PUBLIC.

WE APOLOGIZE IN ADVANCE FOR ANY UNFORESEEN DIFFICULTIES AND ASK FOR YOUR PATIENCE AS WE NAVIGATE UNPRECEDENTED CONDITIONS.

IF YOU HAVE ANY QUESTIONS ABOUT THE SUSPENDED RULES, PLEASE CALL THE OFFICE OF ATTORNEY GENERAL AT 8886726787 OR BY EMAIL @TOMA.OAG.TEXAS.GOV.

OUR GENDER COSTS FOR A PUBLIC FORUM SEGMENT HOWEVER, I'M INFORMED NO ONE SIGNED UP TO SPEAK.

THE FIRST ACTION ITEM IS 9A CONSIDERING TAKE

[5. Action Items/Reports]

POSSIBLE ACTION TO APPROVE THE MINUTES OF MARCH 3RD, 2020, TO HAVE THE MOTION TO APPROVE THE MINUTES OF MARCH 3RD, 2021.

>> MOVE TO APPROVE.

>> OKAY. MOVED I SECOND.

>>TRUSTEE MARSHALL MOVED, TRUSTEE FLORENCE SECOND THAT WE ADOPT THE MINUTES OF MARCH 3RD, 2021.

ARE THERE ANY CORRECTIONS? IF NOT, PLEASE CAST YOUR VOTE BY RAISING HER HAND.

>>THE MOTION PASSES 2-0.

>> WE'VE JUST ADOPTED THE MOTION APPROVING THE MINUTES OF MARCH 3RD, 2021.

NEXT ON THE AGENDA IS THE REPORT OF DISTRICT FINANCIAL UPGRADE DWAYNE THOMPSON, CBO.

OH, YOU'VE GOT A STANDARD FOR DOING

>> DOING WELL HOW ARE, HOW ARE DOING?

>> DOING GREAT THANKS?

>>

>> YOU KNOW, I HAD TO PUT MY GLASSES ON TO SEE THE FACE, DEPUTY CFO FOR THE DISTRICT, AND APPRECIATE THE OPPORTUNITY TO BE HERE FOR A FINANCIAL BUDGET AMENDMENT FOR MAY AND ADDITION OF PROJECTIONS FOR A FIVE-YEAR PROJECTION AND SO ON THE BUDGET AMENDMENT, WE REALLY THE ONLY THING THAT'S AFFECTING OUR FUND BALANCE ON THE BUDGET AMENDMENT FOR MAY IS A $3.1 MILLION IN ADDITION TO THE BUDGET.

AND THAT IS TO GO FOR TO START DOING THE QUICKEN PLANNING FOR MITIGATING LYING LOSS THAT WE'RE GOING TO BE ADDRESSING IN THE NEXT FEW YEARS, AT LEAST.

THAT IS SPECIFICALLY LIKE 22, AND BEYOND THE INITIAL PARTS OF THE BUDGET AMENDMENT ARE JUST SOME TRANSFERS IN BETWEEN FUNCTIONS.

LET'S SEE, ON THE DEBT SERVICE FUND, THERE'S NO CHANGES THAT WE DID AT 1.8 MILLION, WHICH IS FOR PRINCIPAL AND INTEREST PAYMENTS RELATED TO THE SALE OF OUR NEW 2020 AUTHORIZATION FOR I THINK THAT'S THE ONE THAT CLOSED UP THE 2015 ELECTION.

[00:05:10]

WHEN WE GET TO THE FIVE-YEAR FORECAST WAS THE CURRENT YEAR THAN FOUR ADDITIONAL YEARS.

THE CURRENT YEAR IS IMPORTANT TO NOTE THAT IS BASED ON BUDGET AND SO THAT WILL BE DIFFERENT ONCE WE GET TO A YEAR IN AND CLOSEOUT AND WE WON'T KNOW THAT UNTIL THE ACTUAL AUDIT GETS COMPLETED AND THAT'S NOT TILL NOVEMBER, BUT SO UNTIL THEN IT'LL BE SOMEWHAT A PROJECTION AND SO YOU CAN SEE THAT RIGHT NOW WE'RE LOOKING AT ANY UNASSIGNED FUND BALANCE OF 611 MILLION.

IF YOU LOOK AT IT FIVE YEARS, THEN WE'RE PROJECTING ALL THINGS BEING EQUAL.

IF WE DON'T MAKE ANY CHANGES TO OUR PROCESSES, WE'D BE AT ALMOST 322 MILLION.

WE DO EXPECT THAT OUR CURRENT YEAR UNASSIGNED FUND BALANCE WILL END UP BEING SOMEWHAT HIGHER, ALTHOUGH WE'RE NOT READY TO FORECAST EXACTLY WHAT THAT'LL BE.

HOPEFULLY OUR FIVE-YEAR WILL BE A LITTLE BIT AND IMPROVED WHAT WE DO WITH OUR COMMITMENTS THAT WE PROJECT OUR FUND BALANCE WILL BE DECREASING GOING FORWARD.

>> FIRST SEASON TRUSTY MARSHALL?

>> I JUST HAVE ONE QUICK QUESTION THAT THE FEDERAL FUNDS THAT HAVE BEEN RELEASED IN AUSTIN AS WILL GO INTO THE FUND BALANCE UNTIL WE DECIDE WHAT WE'RE DOING WITH THEM?

>> THOSE ARE ACTUALLY IN A DIFFERENT FUND INITIALLY AND SO THERE'S A TALK ABOUT CHIEF THOMPSON TALKED ABOUT A LITTLE BIT AT THE BOARD MEETING.

THAT'S GOING TO BE 582, SO I HAD 542 MILLION WILL BE EXPENDED OUT THERE, BUT WE MAY BE REQUIRED TO SUPPLANT BASED ON LEGISLATION AND MOVE SOME OF THOSE FUNDS ESSENTIALLY INTO 199, WHICH WOULD THEN GO INTO FUND BALANCE AND IF THAT LEGISLATION GOES THROUGH AND PASSES, THEN THAT AMOUNT OF MONEY WOULD GO INTO THE FUND BALANCE, BUT IT WOULD BE COMMITTED BY THE BOARD AND IT WOULDN'T BE USED UNTIL 24, 25, AND 25, 26.

THERE ARE SOME WAYS THAT WE MIGHT BE ABLE TO DO SOMETHING THAT MAKES MY ADDITIONAL FUND BALANCE AND THE 199, BUT THAT HASN'T BEEN DECIDED YET.

>> WHAT DO WE REFLECT THAT IN AN AMENDMENT IN THIS YEAR'S BUDGET OR WILL NOT SHOW UP UNTIL NOW.

>> WE WILL NOT REFLECT IT TILL THE GRANT APPLICATION IS SUBMITTED AND THAT'S.

>> OKAY. THANKS. KRISTI FOREMAN, ANY QUESTIONS?

>> YES, I'M SORRY WE COULDN'T HEAR FOR A MINUTE, BUT WHAT I DID HEAR WAS THAT THE FUND BALANCE WOULD BE GOING DOWN, IS THAT CORRECT?

>> SHORT-TERM, WE PROJECT A FUND BALANCE WILL ACTUALLY GO UP A LITTLE BIT THIS YEAR, BUT PROJECTING GOING FORWARD INTO FUTURE YEARS, YES, I SEE PROJECTIONS RIGHT NOW.

ALL THINGS BEING EQUAL THAT FUND BALANCE WILL GO DOWN AS WE WORK OUR STRATEGIC INITIATIVES GOING FORWARD WITH FROM THE TRE.

>> THERE ARE STRATEGIC INITIATIVES PRIOR TO THIS AND THEN I COME FROM THAT FUND BALANCE.

WHY ARE WE

>> SO MY UNDERSTANDING IS THAT STRATEGIC INITIATIVES CAME FROM THE APPROVAL FROM THE TRE IN IT THAT COMMITMENT THAT THEY ADDITIONAL FUNDS THAT CAME IN FROM THE TRE THAT ADD A LOT TO THE FUND BALANCE, SO THE TRE ADDITIONAL FUNDS THAT CAME IN WOULD FUND THOSE AND SO THAT WOULD STILL BE THE CASE TODAY AND UNTIL OUR FUND BALANCE INCREASED SIGNIFICANTLY AFTER THE TRE, AND THIS WOULD JUST GET OUR FUND BALANCE BACK MORE INLAND TO WHERE IT WAS BEFORE.

MATERIALS

>> I'M STILL A LITTLE CONFUSED

>>WE INTENTIONALLY SET MONEY ASIDE TO EVENTUALLY START DRAWING DOWN.

WE HAVEN'T HAD TO BECAUSE WE'VE HAD SOME GOOD SURPLUS USE AND I DON'T KNOW, DWAYNE THOMPSON IS IN THE ROOM OR NOT? BUT IT WAS OUR PLAN ALL ALONG WITH THE START THEN PAYING FOR THE STRATEGIC INITIATIVES OUT OF THE FUND BALANCE.

AND THAT WHY IT WAS ARTIFICIALLY INFLATED SO WE COULD HANDLE IT AT THIS POINT, IS THAT DWAYNE COMING UP?

>> SO I DIDN'T KNOW THAT OUR PLAN WAS TO TRY TO INCREASE THE FUND BALANCE BECAUSE WE WERE STRUGGLING AT ONE POINT

>>IF YOU RECALL THIS LONG-RANGE SPREADSHEET THAT WE WOULD SHOW WHERE WE DO THAT, DWAYNE, DO YOU HAVE ACCESS TO THAT INFORMATION?

>> I DON'T HAVE IT WITH ME TODAY SIR BUT THAT IS CORRECT.

WE DEVELOPED A FIVE-YEAR PLAN BEFORE THE TRE TO SAY THIS IS HOW WE WOULD FUND THESE INITIATIVES FOR FIVE YEARS AND AT THE END OF THAT, THIS WOULD BE WHAT OUR FUND BALANCE WOULD BE, WHICH IS ACTUALLY LESS THAN WHAT WE'RE PROJECTING NOW.

>> I'M STILL CONFUSED LIKE TO DO IS SEE THAT PLAN BECAUSE HOWEVER, TRUSTEE I NEVER REMEMBER IT AS SAYING THAT STRATEGIC INITIATIVES WILL COUNT FUND BALANCE.

>>YES MA'AM. I WOULD BE ABLE TO SHOW YOU THAT AT THE TIME WE PASS THE TRE,

[00:10:01]

WHAT WE PRESENTED TO THE COMMUNITY.

>> BUT THE TRE WAS REGARDED BASED ON THE STATE AND SO I'M UNCOMFORTABLE WITH USING PROJECTIONS WITH THE TRE WHEN WE DON'T HAVE TRE ANYMORE? THAT'S WHY I'M CONFUSED ABOUT.

WHAT, WE'RE SEEING AND WHAT WE'RE DOING.

>> YES, MA'AM I WILL SEND YOU THAT INFORMATION FROM THE 2018 TRE.

>> DO WE HAVE A TRE NOW?

>> THE TAX RATE THAT WAS RESULTED FROM ADDING THE ADDITIONAL 13 CENTS HAS BEEN SOMEWHAT COMPRESSED BY HOUSE BILL 3, BUT IT'S STILL ABOVE THE STATE MINIMUM, SO WE STILL HAVE A PORTION OF THAT THAT WE'RE COLLECTING.

>> THE ANSWER IS WE DON'T HAVE A TIE.

IT WAS CHANGED BY THIS STATE, THE RATE WAS CHANGED BY THE STATE. CORRECT?

>>

>> THAT'S NOT CORRECT.

NOW, HOW IT WAS FUNDED HAS CHANGED OVER TIME BECAUSE OF OTHER LEGISLATION.

BUT WE HAVE USED UP THAT OPPORTUNITY USED IN OUR TAX RATIFICATION ELECTION AT THAT TIME.

NOW I DON'T KNOW IF THE RULES HAVE CHANGED SO NO ONE WILL HAVE ACCESS TO MORE DOLLARS.

THAT'S WHAT I DON'T KNOW, BUT WE DO HAVE A TAX RATIFICATION ELECTION THAT WAS VOTED BY THE BOARD.

>> I DON'T WANT TO GET INTO SEMANTICS, WHAT I'M TRYING TO DO IS GET AN UNDERSTANDING OF THE REASON THAT WE'RE SAYING STRATEGIC INITIATIVES WILL BE COMING FROM THE FUND BALANCE.

THAT'S MY MAIN QUESTION.

DO YOU MIND TO SHARE THAT INFORMATION WITH ME, AND THEN I WILL CONTINUE THIS DIALOGUE BECAUSE I HAVE SOME CONCERNS BASED ON THE FACT THAT SOME OF OUR INITIATIVES WE'VE HAD FOR AT LEAST SIX YEARS AND WE NEVER TOOK THIS MONEY OUT OF THE FUND BALANCE.

>> I WILL SEND YOU THE INFORMATION.

>> THANK YOU.

>> I SHOULD POINT OUT THAT TRUSTEE JOHNSON HAS JOINED US AND ALSO DOCTOR NORHSA IS ONLINE I SAID IT EARLIER, BUT JUST TO REITERATE SINCE WE JUST HEARD HIM.

HI, DOCTOR H. ANYTHING ELSE ON THIS ITEM? IF NOT, WE'LL MOVE ON TO C REPORT ON THE STATUS OF THE MAINTENANCE WORK ORDER SYSTEM, DWAYNE THOMPSON.

>> WHERE ARE YOU RUNNING D'WAYNE?

>> ON THE WORK ORDER SYSTEM, WE HAVE THREE MARKERS, SO TO SPEAK, TO IDENTIFY ARE WE MEETING THE GOALS THAT RESULTED FROM OUR RESPONSE TO THE WORK ORDER AUDIT.

WE WERE SUPPOSED TO HAVE REDUCED THE OVERALL RETAINING WORK ORDERS BY 50 PERCENT AND WE HAVE DONE THAT.

WE WERE AT 9,582 AND CURRENTLY WE HAVE 3,562 AS OF THIS DATE.

WE ACTUALLY REDUCED OUTSTANDING WORK ORDERS BY MORE THAN 50 PERCENT BY THE MARCH DATE.

THE NEXT MILESTONE IS TO HAVE ROUTINE WORK ORDERS DOWN TO 15 BUSINESS DAYS BY JUNE 30TH, AND THIS IS OBVIOUSLY AS OF MARCH 26, BUT AS THE REPORT THAT I GOT THIS WEEK, WE ARE CURRENTLY AT 13 DAYS, AND SO WE WILL BE ABLE TO ACHIEVE THAT BORROWING SOMETHING DRASTIC HAPPENING, WE WILL BE ABLE TO MEET THE 15-DAY GOAL THAT WE HAVE FOR JUNE 30TH.

I WOULD ANSWER ANY QUESTIONS THAT YOU HAVE.

>> TRUSTEES, ANY QUESTIONS? IS THAT A COMMENT?

>> THAT WAS A COMMENT.

>>

>> YES, SIR. IT IS.

>> ALL OF THIS WAS INCLUDING SNOW MAGATAN AS WELL?

>>THAT'S CORRECT. YES, SIR.

>> PRETTY NICE JOB.

WE WILL MOVE ON TO CONSIDER AND TAKE POSSIBLE ACTION TO ACCEPT AND MAKE A FINAL INTERNAL AUDIT REPORTS.

ARE THESE ONE BY ONE?

>>YES, SIR.

>> A REMOTION, SIR.

>> A REMOTION FIRST. OKAY. DO I HAVE A MOTION TO ACCEPT AND MAKE THEM FINAL INTERNAL AUDIT REPORTS?

[00:15:02]

>> MOVE TO APPROVE.

>> SECOND.

>> WE HAVE A MOTION AND A SECOND. BOB, TAKE IT AWAY.

.>> TRUSTEE FORES ROBERT WILLIAM, CHIEF INTERNAL AUDIT OFFICER, TRUSTEES, AND DOCTOR PLEASURE TO PRESENT TODAY.

WE HAVE FOUR REPORTS TO DISCUSS IN THE OPEN SESSION TODAY.

AS I GO THROUGH, THEY WILL HAVE QUESTIONS AFTER EACH ONE. THAT'S OKAY?

>>SURE.

>> FIRST REPORT IS CONTINUOUS AUDITING OF PAYROLL.

IT WAS A TRANSACTIONAL AUDIT THAT COVERED HOURLY AND BIWEEKLY PAYROLL.

WE TESTED FOR PROPER APPROVAL ON TIME CARDS, RATES OF PAY, AND ACCOUNT CODING FOR THE TRANSACTIONS FROM THE SAMPLE.

I'M GLAD TO REPORT THE ERROR RATE ON MONTHLY WAS FIVE PERCENT THE ERROR RATE IN THE SAMPLE.

WE HAD FIVE INSTANCES WHERE A TIME CARD WAS NOT APPROVED THROUGH THE ORACLE PROCESS.

WE HAVE AN EXPLANATION BY MANAGEMENT THAT I THINK CAN ADDRESS THIS BECAUSE THERE IS A NOTIFICATION THAT GOES OUT FOR APPROVAL.

BUT I THINK IF THEY'RE NOT DONE, THE GAME PLAN GOING FORWARD WOULD BE A SECOND NOTIFICATION SO THAT WE CAN GET THE TIME CARDS APPROVED LIKE THEY'RE SUPPOSED TO BE.

I THINK THAT WILL ADDRESS THE ISSUE WE BROUGHT FORTH.

THE BI-WEEKLY HAD ONE EXCEPTION, SO PRETTY LOW ERROR RATE.

WE START WITH A THRESHOLD OF FIVE PERCENT, WE'D LIKE TO SEE ACCURACY IN ANY ERROR RATE BELOW THAT NUMBER, AND WE STILL REPORT, OBVIOUSLY, EACH AND EVERY ONE.

MANAGEMENT HAS LOOKED AT IT AND AGREED, AND I THINK THERE'S A VERY GOOD SOLUTION GOING FORWARD.

YOU WOULD WANT SOMETHING AT THAT POINT IN TIME AND THEN MAYBE ADDITIONAL E-MAIL OR A NOTIFICATION, SOME TYPE OF MONITORING CLOSER TO THAT MONTH WHEN IT WAS DUE.

I THINK WE GET THE SECOND DAY OF THE MONTH OR THE THIRD DAY OF THE MONTH TO HAVE TO GET ALL THOSE APPROVED.

I KNOW IT'S A RUSH, BUT I THINK IT CAN'T BE DONE.

ARE THERE ANY CLEAN-UP QUESTIONS?. I'LL ENTERTAIN.

>> TRUSTEE, MARSHALL, OR

>> YES. IN THE COURSE OF YOUR REVIEW WHEN YOU'RE LOOKING AT THE EXCEPTIONS, ARE THERE ANY TRENDS TO PINPOINT IF THERE'S ANY PROBLEM INDIVIDUALS, OR IF ANY PARTICULAR DEPARTMENT THAT ARE HAVING ISSUES GETTING, OR IS IT JUST ALL ACROSS THE BOARD?

>> I BELIEVE, ALL DIFFERENT SCHOOLS, AND THEN ONE WAS A CENTRAL OFFICE DEPARTMENT.

I DON'T HAVE THE LIST, I DON'T HAVE THOSE IDENTIFIED IN HERE, BUT NO PATTERN IDENTIFIED.

>> GREAT QUESTION. TRUSTEE MARSHELL

>> I JUST HAVE ONE QUESTION FOR MANAGEMENT AND THIS MIGHT BE MY SMALL BUSINESS OWNER MINDSET, BUT WHY IS IT NOT THE PROCESS TO JUST NOT PAY SOMEONE UNTIL THEIR APPROVAL IS DONE.

I BET YOU ALL THE APPROVALS WOULD GO UP IMMEDIATELY, I THINK THAT IF THE PAYROLL PROCESS STOPPED AND WAITED ON SOMEBODY TO IMPROVE IT, THE APPROVALS WON'T HAPPEN.

WHY CAN'T WE HOLD THE PAYROLL PROCESS UNTIL THE APPROVALS ARE DONE?

>> DEPENDING ON HOW LONG THAT TAKES, THERE'S ALSO A FEDERAL LAW THAT WE HAVE TO PAY IN THE TIME PERIOD

>> SURE. BUT IF YOU START THE PROCESS A FEW DAYS AHEAD OF TIME AND THEN HAVE A WINDOW OF OPPORTUNITY FOR THE APPROVER TO APPROVE BEFORE THE PAYROLL DEADLINE IS SET.

>> WE DO HAVE PRIOR TO, THE ISSUES WHEN WE GET THE ACTUAL NOTICE THAT SOMEONE DIDN'T DO THE APPROVAL.

>>

>> CORRECT. THE MAJORITY OF THE ONES THAT WERE IDENTIFIED WERE MONTHLY, NOT HOURLY, AND SO THEY WEREN'T SUBJECT TO ANY OVERTIME OR ANYTHING LIKE THAT.

WE'RE GOING TO TAKE A LOOK AT THOSE DAYS AND SEE IF WE CAN MOVE THEM UP, BUT THE ISSUE WOULD BE JUST A FUTURE FOLLOW-UP.

THE SECOND PART OF THAT IS, IF THE APPROVER CHANGES OR A PERSON MOVES WITHIN VARIOUS WORKS, THAT IS ALSO AN ISSUE THAT WE'RE TRYING TO RESOLVE THE TIMING OF THAT HAPPENING SO WE CAN GET TO THE RIGHT APPROVER.

>> IS IT BECAUSE IT'S THE SECOND DAY OF THE MONTH THAT THE DEADLINE IS? THE TIMECARD IS COMPLETE AND THE DAY WHEN THE PAYROLL IS RUN.

[00:20:02]

THE WINDOW IS TOO SMALL, IS THAT THE PROBLEM?

>> BETWEEN THE APPROVER AND THE ACTUAL RUNNING CORRECT. YOU WOULD MISS THE ACTUAL PAYROLL DATE IF WE HELD.

WHAT WE CAN TAKE A LOOK AT IS POTENTIALLY MOVING BACK TO THE APPROVAL DATE A LITTLE BIT FURTHER EARLIER, AND MAYBE THAT WOULD RESOLVE THE PROBLEM, BUT WE BELIEVE WE WILL RESOLVE THE PROBLEM WITH ADDITIONAL NOTIFICATIONS.

>> IS THERE A LAW AROUND HOW LATE AFTER THE END OF THE MONTH THE PAYROLL DATE CAN BE?

>> YOU HAVE TO PAY IN THE PAY PERIOD THAT IS SET UP FOR THAT PARTICULAR PERIOD OF TIME.

GENERALLY SPEAKING, THAT'S GOING TO BE THE NEXT TWO WEEKS OR DEPENDING ON WHEN YOU'RE PAYING.

IF YOU HAPPEN TO BE A MONTHLY, IT DEPENDS ON THE PAY PERIOD THAT'S ESTABLISHED AS TO WHEN THE PAYMENT FOR THAT WORK HAS TO HAPPEN.

>> WE'RE DOING IT A WEEK AFTER THE END OF THE MONTH?

>> DEPENDS ON.

>> THE MONTHLY PAYROLL?

>> THE PAYROLL IS ON THE 15TH FOR MONTHLY PAYROLL.

>> THAT'S 15 DAYS IN ARREARS?

>>YEAH.

>> THAT WOULD SEEM LIKE PLENTY OF TIME TO GET AN APPROVAL IN.

>> I'M NOT DISCOUNTING THAT.

>> OKAY. JUST CURIOUS. THANKS. TRUSTEES, TRUSTEE FOREMAN, ANY QUESTION.

OKAY. THEN WE'LL MOVE ON TO THE NEXT AUDIT.

>> THEY'RE ALL ON ONE LINE ITEM, SO I DON'T THINK WE HAVE TO WAIT UNTIL THE END.

>>

>> WE REVIEWED NINE ADDITIONAL ACTIVITY FUNDS AT DIFFERENT SCHOOLS, AND I THINK OUR OVERALL PERCENTAGE OF EXCEPTIONS HAD GONE DOWN THE SECOND BATCH, BUT I WILL POINT OUT THAT FIVE OF THE 10 EXCEPTIONS THAT WERE IDENTIFIED WERE ON HANDLING, AND MORE SPECIFICALLY IT WAS RELATED TO COURIER SERVICE TO PICK UP MONEYS AND TAKE THEM TO THE BANK.

MANAGEMENT WASN'T RENEWING THEIR CONTRACT, DIDN'T HAVE A CONTRACT, AND IT DELAYED IN, I BELIEVE, 48-HOUR RULE THAT IT SHOULD BE PICKED UP WHATEVER OUR TIME LIMIT IS.

STUFF HAD BEEN SITTING FOR WEEKS AT A TIME, SO THEY DID GET THAT ADDRESSED.

ALL OF THAT WOULD BE UP TO DATE.

SEVERAL OF THE OTHER RELATED EXCEPTIONS, THERE'S A RETRAINING REQUIREMENT IF YOU'RE ON A FUND.

THERE'S A BORDER CONTROL AND MINUTES REQUIRED.

I WOULD CALL THOSE MINOR EXCEPTIONS, BUT THEY'RE STILL REQUIRED BY ALL THE FAST RULES IF YOU'RE GOING TO HANDLE ACTIVITY FUNDS.

I THINK THEY'RE PUT IN PLACE SO THAT EVERYBODY KNOWS THE RULES, THEY GET FOLLOWED, AND THEN WE DON'T HAVE TO FIGURE OUT WHAT HAPPENED TO THE FUNDS LATER IF THEY FOLLOW ALL THE RULES.

I'D ENTERTAIN QUESTIONS IF ANY.

>> TRUSTEES, ANY QUESTIONS?

>> TRUSTEE FOREMAN.

>> NO, THANK YOU.

>> OKAY. WE'LL MOVE ON TO THE NEXT.

>> THE NEXT WOULD BE THE AUDIT FOLLOW-UP.

SKIP OVER THAT ONE, SECURITY STEPS, AND GO TO FOLLOW-UP.

WE HAD IDENTIFIED 30 ITEMS THAT WERE DUE FOR FOLLOW-UP.

WE SPENT A LOT OF RESOURCES TO AUDIT AND OBTAIN APPROPRIATE DOCUMENTATION.

I'D LIKE TO REPORT ALL 30 ITEMS HAVE BEEN IMPLEMENTED.

HOWEVER, NEXT QUARTER, WE HAVE ABOUT 78 ITEMS COMING DUE.

WE'LL BE SPENDING A LOT OF RESOURCES TO GET THROUGH THOSE ITEMS. WE'RE LOOKING AT WAYS TO MAKE THE PROCESS MORE EFFICIENT, AND I HAVE SOME REPORTING LATER ON OUR UPGRADE AND OUR SOFTWARE THAT WILL HELP US SEND OUT PARTICULARS ON FOLLOW-UP ITEMS. I THINK THAT WILL MAKE THIS A MORE EFFICIENT PROCESS.

BUT ALSO ON SOME OF THE LOWER RISK ITEMS, PARTICULARLY THE ACTIVITY FUNDS, I THINK WE CAN SEND A NOTE TO INQUIRE OF THAT SPECIFIC PRINCIPLE.

HOW DO YOU ADDRESS THESE ITEMS AND LET THEM SELF-ASSESS? THAT'S 30 OR 40 ITEMS THAT ARE GOING TO MAKE UP THAT 78.

I THINK THAT'S A WAY TO MAKE IT A MORE EFFICIENT FOLLOW-UP PROCESS.

I'D LIKE TO TRY THAT IF IT WORKS WELL AND MAYBE CONTINUE THAT FOR SOME OTHER ITEMS THAT ARE LOWER RISK-RATED.

QUESTIONS ON FOLLOW-UP? TRUSTEES, ANY QUESTIONS ON HAVING ALL GREEN, WHICH IS GOOD? GREEN IS GOOD.

FIRST-TIME.

ASSESSED AND UPDATED.

THE FIRST TIME THAT'S HAPPENED THOUGH.

YES, SIR, ABOUT TO WORK.

WELL, I BRING THE COMMITTEE'S ATTENTION TO THE INTERNAL QAR THAT WE COMPLETED.

I THINK IF YOU SAW THIS LAST TIME,

[00:25:03]

IT WOULD'VE HAD A LOT OF RED ON IT.

THE DEPARTMENT WAS NOT IN VERY GOOD SHAPE.

I THINK WE'VE WORKED HARD UNDER MR. KING'S GUIDANCE OVER THE LAST YEAR.

I WILL CONTINUE TO WORK ON ENSURING THAT ALL ELEMENTS OF THE STANDARDS ARE BEING ADDRESSED.

MY INTERNAL STAFF DID THIS AND THEY DID MAKE SOME RECOMMENDATIONS AND THEY GAVE ME A PARTIAL COMPLIANCE ON DISSEMINATING RESULTS.

I'D LIKE TO EXPLAIN THAT I THINK THAT RELATES DIRECTLY TO CYCLE TIME ON PROJECTS.

IF YOU START AN AUDIT, IF IT GOES OVER SIX MONTHS, THAT'S TOO LONG.

WE NEED TO BE IN A FOUR-MONTH, AND NOTHING OVER SIX MONTHS.

REPORT THE INFORMATION BACK TO MANAGEMENT WELL WITHIN THAT TIME PERIOD SO THEY CAN START ADDRESSING IT IF SOMETHING WE FIND.

THAT'S A PROCESS I'VE IMPLEMENTED THAT ITS ISSUES ARE IDENTIFIED THAT VERY DAY, WE'RE GOING TO DISCUSS IT WITH MANAGEMENT.

WE MIGHT HAVE A WRITTEN RECOMMENDATION IN ANOTHER DAY OR TWO, BUT IT'S GOING TO BE MUCH FASTER IN THE CYCLE TIME.

THEN HOPEFULLY, THAT'LL HELP US COMPLETE THESE AUDITS FASTER AND GET A FINAL REPORT OUT TO MANAGEMENT AND THEN TO THE AUDIT COMMITTEE.

THAT'S GOING TO BE THE GOAL GOING FORWARD.

I DO HAVE TO HAVE AN EXTERNAL QUALITY ASSURANCE REVIEW BY DECEMBER OF NEXT YEAR.

I'M LOOKING AT PLANNING THAT AND GETTING THAT DONE THIS SUMMER, EARLY FALL, NOT WAIT TILL DECEMBER OBVIOUSLY, BUT NO LATER THAN SEPTEMBER, OCTOBER TIME PERIOD, SO I CAN BRING THAT BACK TO THE AUDIT COMMITTEE.

THAT'S THE REQUIRED EVERY FIVE-YEAR EXTERNAL QUALITY ASSURANCE REVIEW.

THAT WILL BE THE GOLD STANDARD TO KEEP US IN COMPLIANCE WITH STANDARDS.

OUR OWN INTERNAL, I THINK WE DID A GOOD JOB.

I THINK WE'RE WELL ON THE WAY TO PROVIDING MUCH BETTER VALUE TO THE DISTRICT AND INTERNAL AUDIT SERVICES.

I'LL ENTERTAIN ANY QUESTIONS.

>> TRUSTEES, ANY QUESTIONS ABOUT THE QUALITY IS THAT THE QAR IS QUALITY ASSESSMENT?

>> INTERNAL QUALITY ASSESSMENT REVIEW. YES, SIR.

>> ASSURANCE REVIEW.

>> ASSURANCE REVIEW.

>> JUST A QUICK QUESTION.

>> PLEASE.

>> THE LAST STATEMENT ABOUT BRINGING ABOUT BETTER SERVICE TO THE DISTINCT, WHAT DOES THAT ENTAIL?

>> TRUSTEE FOREMAN, THANK YOU FOR THAT QUESTION.

I THINK THAT WOULD ENTAIL PROVIDING MORE TIMELY RESULTS, FOCUSING ON HIGH RISK AUDITS ACROSS THE DISTRICT, HIGH-RISK AREAS THAT ARE EITHER FINANCIAL OR PROGRAMMATIC, AND WORKING HARD TO ENSURE THAT WE PROVIDE VALUE BACK TO THE DISTRICT.

EXAMPLE WOULD BE WORKING ON CMAR EARLY IN THE PROCESS NOT TWO YEARS AFTER IT STARTED.

I THINK BY GETTING INVOLVED IN THAT IN THE FRONT END OF THE PROCESS, WE'RE ABLE TO SAVE THE DISTRICT A SIZABLE AMOUNT OF MONEY.

THAT'S AN EXAMPLE OF ADDING VALUE AND BRINGING BETTER SERVICES TO THE DISTRICT.

>> I JUST WANTED TO HAVE YOUR CLARITY. THANK YOU.

>> THANK YOU.

>> AGAIN TRUSTEES, ANY QUESTIONS? I WAS GOING TO ASK OUR EXTERNAL, TONY AND CHRIS, IF YOU GUYS DO THIS STUFF ALL THE TIME.

DO YOU GUYS THINK THIS IS A GOOD START, AND THEN MAYBE HAVING THE EXTERNAL ONE SEPTEMBER THIS YEAR GOOD IDEA?

>> THANK YOU. YES, I DO BELIEVE THAT'S A GOOD APPROACH.

AS FAR AS THE RECOMMENDATION REGARDED DISSEMINATING RESULTS, I DEFINITELY AGREE THAT THE CYCLE TIME OF EIGHT MONTHS ON AVERAGE IS LONG.

BUT WHEN YOU PUT IT INTO CONTEXT THAT IT'S NOW WAITING EIGHT MONTHS TO REPORT ON ISSUES LIKE MR. RUBEN INDICATED, YOU'RE HAVING DEAD ONGOING COMMUNICATION DURING THE ENTIRE PROCESS, SO WHEN YOU GET TO THE END, AT THAT POINT, IT SHOULD JUST BE A FORMALITY.

IN OUR ENVIRONMENT, A LOT OF TIMES WE ISSUE THE REPORT BUT IN A LOT OF SITUATIONS, MANAGEMENT IS ALREADY AWARE, THEY'VE ALREADY STARTED CREATING THEIR ACTION PLANS, AND THEY'VE ALREADY STARTED IMPLEMENTING THOSE ACTION PLANS.

WHILE THAT IS A PERFORMANCE INDICATOR, IT'S NOT ONE THAT I REALLY PUT A LOT OF STOCK IN BECAUSE IT'S THAT CONSTANT ENGAGEMENT THAT I FEEL IS MORE IMPORTANT.

>> I WILL SAY THAT, WHERE I WORK, WE HAVE TO HAVE THEM EVERY THREE YEARS.

SO IT'S BUT IT'S DEFINITELY A BEST PRACTICE TO DO THE INTERNAL EVERY YEAR ACTUALLY IS A GOOD IDEA.

THEN AS FAR AS THE 2440 STANDARD GOES, AS FAR AS DISSEMINATING RESULTS, I THINK YOU DO CONFORM WITH STANDARDS BECAUSE

[00:30:03]

THAT STANDARD SAYS JUST THAT YOU MAKE SURE THAT THE RESULTS ARE COMMUNICATED TO THE RIGHT PEOPLE.

THIS IS PROBABLY AN OPPORTUNITY FOR IMPROVEMENT, BUT I THINK YOU CONFORM.

THAT'S MY PERSONAL OPINION.

>> OKAY. GREAT. WELL, I APPRECIATE THAT.

I DON'T DO THIS STUFF ALL THE TIME, I'M JUST WONDERING FROM A LOOKING FORWARD SCHEDULING POINT OF VIEW IF THIS TIME OF THE YEAR EVERY YEAR YOU DO THE INTERNAL QAR AND THEN RESET THE EXTERNAL FOR EVERY THREE YEARS FROM MY GUESS, THIS SEPTEMBER-OCTOBER JUST TO START SCHEDULED OF FIVE YEARS.

>> YES. TRUSTEE FLORES THE IA STANDARDS REQUIRE FIVE YEARS FROM THE DATE OF THE LAST ONE, AND THAT'S WHY I REFERENCED THAT DECEMBER DATE.

I WOULD LIKE TO GET IT DONE AUGUST-SEPTEMBER TIME PERIOD JUST TO GIVE US A CUSHION, BE ABLE TO BRING IT TO COMMITTEE, GO THROUGH IT THOROUGHLY.

I WANT TO MAINTAIN STANDARDS, BUT I ALSO WANT TO KEEP IMPROVING WHERE WE CAN.

TO CHRIS'S POINT, I DON'T THINK WE WERE ISSUING RECOMMENDATIONS IN A TIMELY MANNER, THAT'S REALLY MY GOAL.

IF I CAN GET THAT DONE WITHIN A WEEK OF IDENTIFYING AN ISSUE WHEN YOU HAVE TO VALIDATE IT, YOU'VE GOT TO ENSURE MANAGEMENT AGREES WITH THAT ISSUE, THEN YOU HAVE TO WRITE IT UP.

THAT'S A WEEK OR SO THAT'S NOT MONTHS.

HAVING THAT DONE, WHICH I WAS NOT, I CAN'T TELL YOU THAT THAT HAPPENED EVERY TIME AND I WANT IT HAPPENING EVERY SINGLE TIME.

WE GET THROUGH A REPORT AND I HAND THEM AND THEY'RE LIKE THIS IS GREAT.

WE'RE HALFWAY THROUGH IMPLEMENTING THESE ISSUES.

THAT'S WHY YOU HAVE A ONE-WEEK OR A TWO-WEEK STANDARD AND THEN A SIX-MONTH TIMELINE.

NO AUDIT SHOULD LAST MORE THAN SIX MONTHS.

THERE MIGHT BE IN A CASE.

IF THAT HAPPENS, I'M GOING TO COME WITH AN EXPLANATION, NOT AN EXCUSE.

WE GOT TO GET IN AND GET IT DONE.

WE'VE GOT TOO MANY PROJECTS ON THE PLAN TO HAVE ONE DRAG ON.

OCCASIONALLY, YOU WILL HAVE ONE.

BUT THAT'S GOT TO BE AN EXCEPTION, NOT A RULE.

>> OKAY. WELL, APPRECIATE IT.

APPRECIATE THE WORK ON THIS ON THE FOCUS. TRUSTEE MARSHALL?

>> JUST A QUICK POINT OF INFORMATION FOR THE CHAIR.

THERE IS ONE MINOR AUDIT REPORT HERE THAT IS INAPPROPRIATE TO TALK ABOUT IN OPEN SESSION.

I DON'T KNOW IF WE NEED TO HAVE A CLOSED SESSION TO GO THROUGH THAT.

I THINK IT'S PRETTY SELF-EXPLANATORY, SO I'M HAPPY TO VOTE TO APPROVE THIS WITHOUT THE CLOSED SESSION IF YOU ARE.

>> YEAH, I'M FINE. OKAY, SO WE WON'T GO INTO CLOSED SESSION.

YES, SIR.

>> THERE WAS NOTHING YOU WANTED TO HIGHLIGHT SPECIFICALLY? GOOD. THANKS.

>> IF THAT'S THE CASE, THOSE ARE ALL OUR REPORTS, RIGHT?

>> YES.

>> WE'VE HAD A MOTION AND A SECOND. WE'LL GO AHEAD AND VOTE.

ALL THOSE IN FAVOR OF THE MOTION RAISE YOUR RIGHT HAND. ALL RIGHT.

>> MOTION PASSES, 3-0.

>> WE HAVE JUST ADOPTED THE MOTION TO ACCEPT AND MAKE FINAL INTERNAL AUDIT REPORTS.

THE NEXT ITEM IS CONSIDERING TO TAKE POSSIBLE ACTION TO MAKE CHANGES IF ANY, TO THE INTERNAL AUDIT CHARTER. DO I HAVE A MOTION?

>> DO WE NEED A MOTION? OH, YOU ARE MAKING IT.

>> ONCE I CHANGE, TRUSTEE MARSHALL.

>> OKAY. THEN YES, I'M READY TO APPROVE.

>> SECOND.

>> WE HAVE A MOTION AND A SECOND.

>> JUST CHANGE IT TO ANNUALLY.

>> THERE'S ONE MINOR CHANGE TO THE CFC EXHIBIT FROM BI-ANNUAL TO ANNUALLY

>> YES. THERE WAS SOME CONFUSION AS TO THE DEFINITION OF BI-ANNUAL

>> TO YOU MEAN IT MEANT TWICE A YEAR?

>> BI-ANNUAL CAN ACTUALLY MEAN.

>> YES, SIR.

>> YEAH.

>> ABSOLUTELY. I LOOKED IT UP SEVERAL WE'LL DO IT EVERY YEAR. I THINK IT'S CLEAR.

I WORKED WITH BOARD SERVICES OR IF YOU ALL APPROVE BUT I BELIEVE, THEN THEY CAN MAKE THAT CHANGE IN THE AUDIT CHARTER.

>> TRUSTEES, ANY QUESTIONS?

>> NO. THANKS FOR CLARIFYING THAT.

>> MINI MEMBERS, ANYONE? IF THERE ARE NO QUESTIONS THEN I WILL LET YOU VOTE.

ALL THOSE WHO ARE IN FAVOR RAISE YOUR HAND.

>> MOTION PASSES 3-0.

>> WE'VE JUST ADOPTED THE MOTION APPROVING AMENDMENTS TO THE INTERNAL AUDIT CHARTER CFC EXHIBIT.

THE NEXT ITEM IS CONSIDERING TO TAKE POSSIBLE ACTION TO MAKE CHANGES, IF ANY, TO THE AUDIT COMMITTEE CHARTER

>> YOU DON'T NEED SOME MOTIONS.

>> NO CHANGES SUBMITTED. I HAD NONE.

[00:35:03]

THE AUDIT COMMITTEE CAN REVIEW AND AMEND THIS IF NECESSARY.

>> OH, OKAY. YEAH. THIS IS MINE, SO IT SAYS HERE THERE ARE NO PROPOSALS OR CHANGES.

>> G, REPORT ON DISTRICT HOT-LINE.

>> THANK YOU. TRUSTEE FORES.

HERE'S THE ACTIVITY THROUGH THE HOT-LINE.

AS YOU CAN SEE IT DEFINITELY THE SCHOOL PICKED BACK UP.

FOURTH-QUARTER WAS PRETTY HEAVY ACTIVITY.

WE'VE BEEN WORKING HARD AS THESE GET ASSIGNED OUT TO VARIOUS DEPARTMENTS TO INVESTIGATE AND RESOLVE.

A SIGNIFICANT NUMBER OBVIOUSLY WERE CLOSED DURING THE PERIOD WITH 78 BEING OPEN.

I THINK WE CAN KEEP PUSHING THESE THROUGH A SCHOOL, ENDS FOR THE SUMMER, AND MAKE A DEN IN THESE.

OBVIOUSLY, I THINK WE'RE ALL BACK IN SESSION IN THE FALL.

OUR NUMBERS JUST STAY PRETTY HIGH.

OVERALL THIS YEAR, THEY'VE BEEN FAIRLY LOW THAN WHAT I'VE SEEN THE LAST SEVERAL YEARS, WHICH WERE 15-1600 A YEAR.

I CAN ADD THESE IT'S UNDER A 1000.

OVER THE WHOLE YEAR, THEY'RE DOWN SIGNIFICANTLY, BUT I DO SUSPECT THAT MIGHT CREEP BACK UP.

IT DOES TAKE A LOT OF RESOURCES AND WE KEEP WORKING HARD.

I'LL BE GLAD TO ANSWER ANY QUESTIONS IF THERE ARE ANY.

>> TRUSTEES, ANY QUESTIONS?

>> YES.

>> TRUSTEE FOREMAN?

>> HOW LONG DO REPORTS COME? WE'VE GOTTEN BACK QUARTER THE NUMBER THAT COMES IN.

WHY DON'T WE HAVE BACK QUARTER THE NUMBER THAT HAVE RESOLVED? THERE ARE SEVERAL ONES DOWN HERE THAT GETS MY ATTENTION.

I DON'T KNOW IF THOSE HAVE BEEN RESOLVED OR NOT, THE SHEET THAT YOU PROVIDE.

>> IT'S ON THE BACK OF THE PAGE.

>> NO, IT'S NOT. NOT WHAT I'M LOOKING FOR I'VE SEEN WHAT'S ON THE BACK OF THE PAGE IS HOT-LINE REPORT DISTRIBUTION.

BUT I'M LOOKING AT THE PAGE THAT I HAVE, IT SAYS HOT-LINE REPORTS BACK TYPE.

>> TRUSTEE FOREMAN, DO I USE THE THIRD PAGE?

>> HOLD ON A SECOND.

TRUSTEE

>> THE PAGE THAT BEGINS WITH HOT-LINE REPORTS DISTRIBUTION DOES HAVE A COLUMN TITLED STATUS CLOSED, WHICH I'VE GOT

>> YEAH, BUT IT DOESN'T. IT'S NOT BASED ON TYPE.

>> OH, YOU WANTED THE FIRST PAGE BROKEN OUT BY CLOSED OR NOT.

>> CORRECT.

>> OKAY.

>> SO THAT CAN WE HAVE AN UNDERSTANDING OF WHICH ONES ARE ACTUALLY CLOSED OR FOR INSTANCE ON THE FOLLOW-UP OR INAPPROPRIATE COMMUNICATION AND DOESN'T INDICATE WHICH ONE OF THOSE ARE CLOSED IT'S JUST ABOUT NUMBERING, NOT SPECIFIC.

>> RIGHT. I UNDERSTAND YOUR QUESTION TRUSTEE FOREMAN.

ON THE THIRD PAGE, IT HAS IT AGED BY MONTH, BUT I THINK I CAN TAKE THAT 78 AND BREAK IT OUT.

THE ONLY ONES WE HAVE OPEN ARE FROM FEBRUARY, MARCH, AND APRIL, BUT IT'S NOT BY TYPE. YOU ARE CORRECT.

I THINK WE CAN BREAK THIS 78 OUT TO TRACK THAT FIRST TABLE.

>> IT'LL MAKE MORE SENSE TO ME TO BE ABLE TO UNDERSTAND EXACTLY WHICH ONES WERE NOT ABLE TO CLOSE.

>> YES, MA'AM.

>> THANK YOU.

>> DAVID, DO YOU HAVE THE THIRD?

>> YEAH. WE DON'T HAVE THE FOURTH PAGE.

IT SAID 78.

>> JUST TO BE CLEAR, SO BASICALLY, ANYTHING THAT HAPPENED JUNE 2020 TO JANUARY 2021, EVERYTHING'S BEEN CLOSED?

>> YES, SIR.

>> THE ONLY STUFF THAT'S OPEN IS STUFF THAT WAS STARTED FEBRUARY, MARCH, OR APRIL AND WE HAVE THEM REFLECT.

FOR FEBRUARY THERE ARE ONLY

>> YES SIR.

>> THEN IN MARCH, THERE ARE 22 AND THEN APRIL 53.

>> EVERYONE STILL DOESN'T SAY BY TYPE AND I THINK YOU'RE MISSING MY QUESTION BY TRYING TO CLARIFY MY POINT.

>> SHE WANTS THIS BROKEN OUT BY

>> NO. MY POINT WAS COMPLETELY DIFFERENT.

I TOTALLY GET YOUR POINT TRUSTEE FOREMAN.

>> OKAY.

>> GET THE DATA THAT YOU'RE TRYING TO UNDERSTAND.

MY POINT WAS TOTALLY DIFFERENT.

MY POINT WAS THAT EVERYTHING UP TO JANUARY IS CLOSED, WHICH IS GOOD.

[00:40:01]

THAT WAS MY ONLY POINT.

>> WHAT DOES THE FOURTH QUARTER ENTAIL? WHAT TIMELINE WHEN THEY'RE ON THE FIRST SHEET, ON THE FOURTH QUARTER, WHAT TIMELINE IS THAT?

>> FEBRUARY, MARCH, APRIL.

IT'S A DIFFERENT QUARTER THAN A NORMAL FISCAL YEAR QUARTER. YES, SIR.

>> FEBRUARY WHEN YOU'RE LOOKING AT IT, ONE OF THE THINGS THAT CONCERN ME IS THE DISCRIMINATION AND HARASSMENT THAT'S GOING UP, SO THEY WENT UP IN THE FOURTH QUARTER, CORRECT?

>> YES, SIR.

>> OKAY. THAT PROCESS IS PROBABLY WORKING WITH HUMAN CAPITAL TO RESOLVE THESE MATTERS, CORRECT?

>> IT COULD BE HCM, AND SO TITLE IX.

>> OKAY. THANK YOU.

>> I'LL WORK ON BREAKING THAT OUT. SEE WHAT.

>> THANK YOU.

>> BACK INTO IT, BUT I THINK THAT'S A GOOD QUESTION.

>> GREAT. THEN WE'LL MOVE ON TO THE REPORT ON STATUS OF CURRENT YEAR AUDIT PLAN AND SUFFICIENCY OF DEPARTMENT RESOURCES.

>> THANK YOU, TRUSTEE FOREMAN.

TURN YOUR ATTENTION TO THE AUDIT PLAN.

IT HAS OUR HOURS IN THERE TO DATE, OVER OR UNDER BUDGET, BRIEF DESCRIPTION OF IT, AND THE CURRENT STATUS.

WE'RE COMPLETING ALMOST EVERYTHING IN THIS PLAN.

WE HAD ONE ISSUE THAT CAME UP ON THE BOTTOM OF THE FIRST PAGE, INTERNAL CONTROL REVIEW.

AS WE LOOKED AT THAT AUDIT A LITTLE BIT MORE, WE REALIZED THAT A LOT OF THE INTERNAL CONTROL WORK WE'RE DOING ARE IN INDIVIDUAL AUDITS.

THERE REALLY WASN'T A NEED TO REDO IT AGAIN OR DO SOMETHING ELSE THAT COVERED THE SAME AREAS.

EXPENDITURE REVIEW.

WE DID A LOT OF TRANSACTION AUDITS THIS YEAR, SO TECHNICALLY WE DIDN'T CANCEL IT, BUT WE'RE SAYING WE'VE COVERED IT IN EVERYTHING ELSE THAT WE'VE DONE BECAUSE OF THE TYPE OF AUDITS WE DID WERE MORE TRANSACTIONAL INTERNAL CONTROL RELATED TO PROCUREMENT, PAYROLL, GENERAL DISBURSEMENTS.

SEYMORE CONSTRUCTION AUDITS.

ALL OF THOSE INVOLVE LOOKING AT CONTROLS.

IT WOULD MAKE SENSE NOT TO DO ANYTHING EXTRA IN THAT THIS YEAR, WE'VE IDENTIFIED MORE SPECIFIC STUFF TO DO IN NEXT YEAR'S AUDIT PLAN.

BUT WORKING THROUGH A COVID YEAR, I HATE TO USE HAVING EXCUSE, BUT YOU CAN SEE SOME AREAS ARE UP AND SOME ARE UNDER, BUT EACH AND EVERYTHING THAT WE WORKED ON THIS YEAR HAS ADDED VALUE.

WE SAVED RESOURCES IN SEVERAL AREAS AND WE'VE TALKED ABOUT THAT BEFORE, THE CYBERSECURITY TECHNOLOGY AREA.

ALTHOUGH WE'RE DOING SOME ADDITIONAL WORK ON DISASTER RECOVERY RIGHT NOW, WE HOPE TO BE COMPLETED WITH EVERYTHING, HAVE A CLEAN CUT-OFF AT THE END OF JUNE, SO WE WOULD START A NEW PLAN IN JULY.

THERE'S A LITTLE BIT OF CARRYOVER BUDGETED IN THE NEW PLAN, BUT NOT A WHOLE LOT.

I THINK WE'RE GOING TO HAVE A GOOD CLEAN CUT-OFF, WHICH THEN WILL HELP US WITH OUR TEAM MADE UPGRADE I'D MENTIONED EARLIER.

A NEW PAPER SYSTEM THAT'S GOING TO TRACK AUDIT PLAN, INTEGRATE A RISK ASSESSMENT, HELP FOLLOW UP ON ISSUES THAT THEY'RE IN THE DATABASE.

THAT WAY WE CAN START WITH THE NEW SYSTEM IN JULY 1.

I'LL ENTERTAIN QUESTIONS SPECIFICALLY IF YOU HAVE THEM; TRUSTEE MARSHALL.

>> WHY IS THE TECHNOLOGY VARIANCE SO HIGH, IS THAT BECAUSE WE'VE OUTSOURCED THAT?

>> YES, SIR.

>> WE AREN'T PLANNING TO OUTSOURCE IT AT THE BEGINNING WHEN WE BUDGETED THE HOURS?

>> NOT WHEN WE PUT THIS PLAN TOGETHER IN APRIL AND MAY.

>> OKAY. THAT MAKES MORE SENSE TO ME THEN.

ONE QUESTION IN JEST, BUT ALSO WITH AN ELEMENT OF SERIOUSNESS, THE SUPERINTENDENT'S EXPENSES, THE BOARD RECEIVES A REPORT OF THE SUPERINTENDENT'S EXPENSES AND I DON'T THINK SINCE I'VE BEEN ON THE BOARD FOR FIVE YEARS THAT THERE'S EVER BEEN MORE THAN TWO OR THREE ITEMS ON THE SUPERINTENDENT'S MONTHLY EXPENSE REPORT.

SO I CANNOT FATHOM HOW IT WOULD TAKE 204 HOURS TO AUDIT WHAT PROBABLY AMOUNTS TO NO MORE THAN 20 EXPENSE ITEMS IN THE ENTIRE YEAR.

I PERSONALLY, BY MYSELF, COULD AUDIT THOSE IN 30 MINUTES.

>> YES, SIR. I'LL BE THERE LOOKING.

>> THE MAGNITUDE OF THE SUPERINTENDENT'S EXPENSES.

>> THEY HAD BEEN VERY LOW.

WE DO HAVE TO REVALIDATE, RUN OUR OWN REPORTS TO MATCH UP TO THE SMALLER DOLLARS. I WILL LOOK INTO THAT.

>> ALL RIGHT, THANKS.

>> TRUSTEES ANY QUESTION? TRUSTEE FLORES. TRUSTEE FOREMAN.

[00:45:02]

>> YES, I HAVE A QUESTION.

OF COURSE, IT WOULD BE ON E-RATE TO START WITH.

THIS IS THE 2021, WE SAY IT'S IN PROGRESS, BUT YOU SAY THAT THE NEW START DATE FOR THE AUDIT CLAIM WILL BE IN JULY.

WILL THIS BE COMPLETED BY JULY?

>> YES, MA'AM, TRUSTEE FOREMAN.

I MEANT TO POINT OUT THAT WE BROKE OUT E-RATE.

WHAT HAPPENED LAST YEAR IS WE GOT DELAYED BECAUSE OF COVID AND DIDN'T FINISH THE 2020 NOW WE HAVE TO DO AND COMPLETE THIS YEAR'S.

IT WILL BE DONE BY JULY 1 OR JUNE 30TH.

WE'VE STARTED THAT SEVERAL WEEKS AGO.

THAT'S WHY WE ENDED UP WITH TWO E-RATE AUDITS IN THE SAME AUDIT PLAN YEAR.

>> IS THERE AN OUTSIDE AUDITOR?

>> THAT IS US, BOTH OF THESE ARE US.

NOW THE MANAGEMENT STILL CONTRACTS WITH WHITLEY PENN, I BELIEVE DOES AN OUTSIDE EXTERNAL REVIEW IN THE FALL TIME PERIOD: SEPTEMBER, OCTOBER, NOVEMBER, DECEMBER TIME PERIOD.

WE'LL BE DONE WITH I WORK END OF JUNE.

>> BECAUSE I JUST NOTICED THOSE SMALL NUMBER OF HOURS THAT HAVE BEEN PUT IN FOR THE 2021 YEAR.

>> YES, THAT'S CORRECT.

WE STARTED PLANNING, BUT I'VE GOT SEVERAL PEOPLE WORKING ON THAT.

IT NORMALLY TAKES ABOUT SIX WEEKS.

WE ARE RIGHT ON SCHEDULE TO GET THAT COMPLETED BY THE END OF JUNE.

>> THEN UNDER EXTERNAL AUDIT, I NOTICE THERE WERE SOME ADDITIONAL HOURS ADDED, 148.

IS THERE A REASON FOR THAT?

>> TRUSTEE, THAT'S THE VARIANCE FROM THE BUDGET WE'VE COMPLETED THAT.

IT DID TAKE MORE THAN 100 BECAUSE THAT'S WHERE WE ACTUALLY DID HAVE TO VISIT A NUMBER OF LOCATIONS AND SCHOOLS TO LOCATE ALL THE ASSETS LAST YEAR FOR THE EXTERNAL AUDITORS.

I THINK 100 WAS WAY TOO LOW.

>> THE OTHER QUESTION FROM ME WOULD BE, HOW MANY HAVE WE DONE IN THE PAST? WHITLEY HAS BEEN THE AUDITOR FOR AT LEAST SIX OR SEVEN YEARS, AND SO I THINK THERE SHOULD BE SOME FAMILIARITY WITH THE DISTRICT.

TO HAVE A VARIANCE OVER FOR AN AUDITOR THAT'S FAMILIAR WITH THE DISTRICT ALWAYS WOULD RAISE AN EYEBROW, ESPECIALLY FROM ME.

>> YES, MA'AM. I'LL MONITOR THAT.

>> THANK YOU.

>> WHAT HAPPENS EVERY YEAR WITHIN MY STAFF IS I HAVE TO GRAB EIGHT, OR NINE, OR 10 PEOPLE.

SOME HAVE GONE TO VARIOUS LOCATIONS AND DONE THIS, MOST HAVE NOT.

>> THE QUESTION WOULD BE, AND THEN I'LL LEAVE IT ALONE, IS WHAT WAS THE NUMBER OF HOURS THAT HAVE BEEN BUDGETED FOR THE LAST FOUR YEARS PER YEAR.

THEN COMPARING THAT WITH THE NUMBER OF HOURS IT'S TAKING THIS YEAR.

>> YEAH, I COULD FIND THAT OUT.

BUT LET ME CONFIRM THAT.

>> YEAH. IF YOU WOULD LOOK AT THAT.

I WOULD APPRECIATE THAT.

THEN AT THE PURCHASING SIDE WHERE YOU ADDRESSED THE SEYMORE, I'M TRYING TO FIND IT REALLY QUICKLY.

I'M WONDERING IF THE SEYMORE CONTRACTS THAT YOU WERE WORKING AT ARE JUST FOR THE DISASTER OR IF THERE WOULD BE SEYMORE CONTRACTS THAT ARE THROUGHOUT THE DISTRICT.

>> WHAT'S BEEN INCLUDED THIS YEAR IS ALL THE CMARS.

ALL FOUR. I KNOW THAT PROBABLY DOESN'T READ EXACTLY CLEAR.

>> IT DOESN'T.

>> THAT COULD BE A LITTLE MORE CLEAR.

>> YOU SEE WHY I HAVE A QUESTION.

>> YES, MA'AM.

>> YOU SEE WHY I HAVE A QUESTION, RIGHT?

>> THAT'S ALL FOR CMARS THAT WE'VE BEEN INVOLVED IN.

OBVIOUSLY, WAS AFFECTED BY THE DAMAGE.

>> WHY?

>> WE DON'T KNOW. I'M SORRY.

THREE SCHOOLS WERE AFFECTED.

>> DID YOU HAVE CMAR IN WEST DALLAS?

>> YES, MA'AM.

>> YOU HAVE OTHER CMARS COMING UP, AND THE QUESTION STILL WOULD BE, ARE YOU LOOKING AT ALL CMARS OR ARE YOU LOOKING JUST THE ONES INVOLVED IN THE DISASTER?

>> ALL CMARS.

>> YOU MIGHT WANT TO CLARIFY THAT.

>> YES, MA'AM.

>> THANK YOU.

[00:50:02]

>> TRUSTEES, ANY OTHER QUESTIONS ON THIS ITEM? IF NOT, WE WILL MOVE TO ITEM 8.

REPORT ON STATUS OF CURRENT YEAR AUDIT PLAN AND SUFFICIENCY OF DEPARTMENT RESOURCES.

THE NEXT ITEM IS CONSIDERING TO TAKE POSSIBLE ACTION TO APPROVE THE 2021/2022 INTERNAL AUDIT DEPARTMENT BUDGET. DO I HAVE A MOTION?

>> MOVE TO APPROVE.

>> SECOND.

>> WE HAVE A MOTION AND A SECOND. BOB?

>> TRUSTEES, WE PRESENTED THIS AS THE SAME FROM LAST YEAR.

I THINK THIS BUDGET WOULD HELP ENSURE I DO HAVE THOSE RESOURCES I DON'T HAVE A TOTAL.

THIS CHART DOESN'T HAVE A TOTAL ON, IT'S BROKEN OUT BY SALARY AND BENEFITS AND THEN OTHER CONTROLLABLE COST.

THE TOTAL IS 2,498,997.

IT'S THE TWO NUMBERS ADDED TOGETHER OBVIOUSLY.

>> TRUSTEE MARSHALL?

>> I MAY BE SKIPPING AHEAD A LITTLE BIT, BUT I NOTICED ON THE NEXT AGENDA ITEM, THAT THE TOTAL NUMBER OF HOURS BUDGETED FOR THE AUDIT PLAN FOR THIS COMING YEAR IS ABOUT 2000 HOURS LESS THAN WHAT WE JUST TALKED ABOUT IN THE LAST ITEM.

YOU WENT FROM 24,000 BUDGETED HOURS TO ABOUT 22,000 BUDGETED HOURS, AND I'M ASSUMING THE 2,000 HOUR DIFFERENCE IS ONE PERSON.

IS THAT RIGHT? IN OTHER WORDS, YOU HAVE 20 PEOPLE HERE, 20 FTES IN YOUR BUDGET ON THIS ITEM.

DID WE HAVE 21 IN THE PREVIOUS YEAR?

>> I THINK THAT WAS CAUSED BY OPEN FTES.

SO THEY ONLY BUDGETED

>>

>> RIGHT.

>> OKAY.

>> SO I'M FILLING IN THE PROCESS.

THAT'S WHAT WILL HURT YOU IN AN AUDIT PLAN.

YOU THINK YOU'LL BE FULL FOR THE WHOLE YEAR THIS YEAR'S BUILT ON TWO OPEN POSITIONS.

IF I KEEP THEM FILLED FOR THE WHOLE YEAR, OBVIOUSLY, I'M GOING TO HAVE MORE HOURS TO ALLOCATE.

>> SO YOUR UNDERSTANDING OF THE FTE ALLOCATION FOR THIS YEAR IS THAT IT'S IDENTICAL TO WHAT IT WAS LAST YEAR.

>> TWENTY POSITIONS. YES, SIR.

>> TWENTY. OKAY, GREAT. THANKS.

>> BUT OPEN.

>> RIGHT.

BUT IT'S THE SAME NUMBER OF AVAILABLE POSITIONS IN THE DEPARTMENT?

>> YEAH.

>> OKAY, THANKS.

>> TRUSTEES, ANY OTHER QUESTIONS? TRUSTEE FOREMAN? OKAY. NO OTHER DISCUSSION.

WE WILL VOTE ON APPROVING OF THE 2021/2022 INTERNAL AUDIT DEPARTMENT BUDGET.

ALL THOSE IN FAVOR RAISE YOUR HAND.

OKAY. WE HAVE JUST ADOPTED THE MOTION TO APPROVE THE FISCAL YEAR 2021/2022 INTERNAL AUDIT DEPARTMENT BUDGET.

NEXT ITEM IS CONSIDERING TO TAKE POSSIBLE ACTION TO APPROVE THE FISCAL YEAR 2021/2022 ANNUAL AUDIT PLAN. DO I HAVE A MOTION?

>> MOVE TO APPROVE.

>> SECOND.

>> ALL RIGHT. WE HAVE A MOTION BY TRUSTEE MARSHALL, SECOND BY TRUSTEE JOHNSON.

DISCUSSION. BOB?

>> THANK YOU, TRUSTEES.

YES, WE'VE MET WITH MANAGEMENT AND TRUSTEES AS WE WALK THROUGH THIS TO BUILD A BETTER RISK ASSESSMENT, I THINK I'VE EXPLAINED THAT PROCESS.

WE HAVE A MUCH MORE ROBUST RISK ASSESSMENT THIS YEAR.

WE PUT A LOT OF RESOURCE IN IT.

HAVE A HIGHLY EXPERIENCED PERSON WORKING ON THIS.

HOPEFULLY, IT'S SELF-EXPLANATORY.

IT TALKS ABOUT THE PROCESS WE WENT THROUGH TO REALLY DIG IN AND FIGURE OUT OF ALL THE RISK, THEN HOW DO WE IDENTIFY THE HIGH RISK? IN THAT PROCESS, WE'VE IDENTIFIED 70 OR 80 HIGH RISK ACROSS THE DISTRICT.

VERY BIG DISTRICT, LOTS OF MOVING PARTS, BUT I THINK OUR PROCESS WAS VERY THOROUGH.

IT'S NOT PERFECT AND WE'LL KEEP BUILDING ON THIS, ESPECIALLY WHEN WE CAN INTEGRATE THIS INTO THE SOFTWARE.

WE CAN BE ABLE TO SHARE THE RISK ASSESSMENT WITH MANAGEMENT ACROSS THE DISTRICT, WITH MANAGEMENT SO THAT WE UNDERSTAND WE'RE TALKING FROM THE SAME PAGE.

I'M PRESENTING A PLAN ON PAGE THREE OR FOUR THAT COVERS ALL THE TAXONOMIES THAT COVERS WHAT I SEE AS THE HIGHEST RISK FOR NEXT YEAR.

IN REALITY, I COULD HAVE BROUGHT YOU PROBABLY A THREE-YEAR PLAN, BUT VERY HARD TO PROJECT WHAT'S GOING TO HAPPEN.

WE'RE GOING TO BE MAKING ADJUSTMENTS.

I'M SURE IN THE NEXT YEAR'S RISK ASSESSMENT, OTHER STUFF WILL COME FORTH.

WE NEED TO BE FLEXIBLE, EVEN DURING THE COURSE OF THIS, I MIGHT HAVE TO COME BACK AND ASK FOR MODIFICATIONS OR CHANGES.

OBVIOUSLY, SITTING HERE IN MAY LOOKING AT WHAT'S GOING TO HAPPEN FOR THE WHOLE 12 MONTHS IS NOT EASY TO DO, BUT I WOULD ASK YOU TO.

WELL, I'LL ANSWER ANY QUESTION, BUT ASK YOU TO APPROVE WHAT WE PRESENTED HERE FOR THE '21/'22 AUDIT PLAN?

[00:55:04]

>> TRUSTEES, ANY QUESTIONS? TRUSTEE MARSHALL?

>> I DON'T HAVE ANY QUESTIONS. I WILL JUST SAY THANK YOU FOR GOING BACK TO THE OLD PROCESS WHERE YOU MET WITH ALL THE TRUSTEES THAT WE HAD MISSED THAT FOR A COUPLE YEARS AND I'M GLAD IT'S HAPPENING AGAIN, SO THANKS.

>> ABSOLUTELY. YOUR HELP AND SUPPORT IS MUCH APPRECIATED.

>> TRUSTEE FOREMAN?

>> THANK YOU.

>> CHRIS?

>> I JUST WANT TO TAKE A MOMENT.

I HAD THE OPPORTUNITY TO REALLY DIG IN TO THIS RISK ASSESSMENT, PLUS I JUST WANT TO COMMEND YOU AND YOUR TEAM FOR THE AMOUNT OF WORK AND EFFORT THAT WENT INTO COMPILING THIS.

OF COURSE, I'M NOT GOING SPEAK FOR TONY, BUT US BEING PROFESSIONALS IN THE INDUSTRY, THIS IS NO SMALL FEAT, AND THIS IS SOMETHING THAT I'VE SEEN SOME ORGANIZATIONS TAKE TWO OR THREE YEARS TO GET RIGHT.

SO JUST THE AMOUNT OF EFFORT AND THE AMOUNT OF TIME THAT IT TOOK YOU, I JUST WANT TO COMMEND YOU GUYS.

>> THANK YOU.

>> ALL RIGHT.

>> CHEESEBURGER.



* This transcript was compiled from uncorrected Closed Captioning.