[1. Notice and Return]
[00:00:02]
>> [NOISE] GOOD AFTERNOON. IT'S 4:30 AND WE HAVE A QUORUM, AND THIS MEETING HAS BEEN DULY POSTED.
PLEASE STAND AND JOIN ME FOR A MOMENT OF SILENCE.
[2. Moment of Silence and Pledge of Allegiance]
REMAIN STANDING FOR THE PLEDGE OF ALLEGIANCE [NOISE] AND SALUTE TO THE TEXAS PLEDGE.THE FOLLOWING COMMITTEE MEMBERS ARE HERE IN ATTENDANCE.
DISTRICT 4, KARLA GARCIA, DISTRICT 6, JOYCE FOREMAN, ALSO IN ATTENDANCE ARE OUR NON-VOTING COMMITTEE MEMBERS, TONY STEVENS AND CHRIS LEWIS.
WE ARE ALSO JOINED BY OUR SUPERINTENDENT OF SCHOOLS, MICHAEL HINOJOSA, AND I AM DUSTIN MARSHALL, COMMITTEE CHAIR.
[NOISE] IN ORDER FOR THE BOARD TO HOLD THIS MEETING IN AN EFFECTIVE MANNER,
[3. Acknowledgements]
I WANT TO LET IT BE KNOWN THAT THIS MEETING WILL BE CONDUCTED IN AN ORDERLY FASHION AND ASK THE PUBLIC TO ABIDE BY THE RULES OUTLINE IN BOARD POLICY BED LOCAL PERTAINING TO PUBLIC PARTICIPATION.ADDITIONALLY, IT IS A CRIMINAL OFFENSE FOR A PERSON WITH INTENT TO PREVENT OR DISRUPT A LAWFUL MEETING TO SUBSTANTIALLY OBSTRUCT OR INTERFERE WITH THE ORDINARY CONDUCT OF A MEETING BY PHYSICAL ACTION OR VERBAL UTTERANCE, AND THEREBY CURTAIL THE EXERCISE OF OTHERS FIRST AMENDMENT RIGHTS.
EVERYONE IS ASKED TO PLEASE WEAR YOUR MASK, COVER YOUR MOUTH AND NOSE WHILE ON DISTRICT PROPERTY.
ANY PERSON WHO REFUSES TO WEAR A MASK BECOMES BOISTEROUS OR DISRUPTIVE WHILE ADDRESSING THE BOARD OR WHILE ATTENDING THIS AUDIT COMMITTEE MEETING SHALL BE ASKED TO LEAVE BY OUR SECURITY OFFICERS.
FAILURE TO LEAVE WHEN REQUESTED TO DO SO BY OUR SECURITY OFFICERS MAY RESULT IN A PERSON BEING ESCORTED FROM THE MEETING AND SUBJECT TO ARREST.
SECURITY PERSONNEL WILL MONITOR THE ROOM AND ASK PEOPLE TO LEAVE THE ROOM IF THEY REFUSE TO COMPLY.
IF THIS BECOMES DISRUPTIVE, THE CHAIR WILL ANNOUNCE A RECESS.
I HAVE NO REMARKS REGARDING AGENDA ITEM 3.2.
WE ARE ON TO THE PUBLIC FORUM SEGMENT OF OUR MEETING.
HOWEVER, I WAS INFORMED THAT NO ONE SIGNED UP TO SPEAK.
WE ARE NOW ON TO THE APPROVAL OF MINUTES OF SEPTEMBER 16TH, 2021.
[5. Action Items/Reports]
DO I HAVE A MOTION TO APPROVE THE MINUTES?>> IT HAS BEEN MOVED BY TRUSTEE FOREMAN AND SECONDED BY TRUSTEE GARCIA THAT WE ADOPT THE MINUTES OF SEPTEMBER 16TH, 2021.
TRUSTEES, ARE THERE ANY CORRECTIONS? SEEING NONE. ALL THOSE IN FAVOR, PLEASE CAST YOUR VOTES BY RAISING YOUR HANDS. ALL THOSE IN FAVOR?
>> YOU HAVE JUST ADOPTED THE MOTION APPROVING THE MINUTES OF SEPTEMBER 16TH, 2021.
WE ARE NOW ONTO AGENDA ITEM 5.2; REPORT ON THE DISTRICT'S FINANCIAL UPDATE. JOHN THOMPSON.
>> [NOISE] GOOD AFTERNOON TRUSTEES.
WE HAVE THE BUDGET AMENDMENT FOR THE MONTH OF NOVEMBER HERE.
FOR THE MONTH OF NOVEMBER, THERE IS ACTUALLY NO CHANGES PROPOSED TO THE BUDGET, ONLY INTER-FUND TRANSFERS AND THAT RELATES TO THE GENERAL FUND DEBT SERVICE AND GENERAL RESTRICTION.
NOTHING MORE TO REPORT ON THAT THAN THERE ARE NO CHANGES BEING REQUESTED FOR THE MONTH.
DOES ANYBODY HAVE ANY QUESTIONS?
>> QUESTIONS? TRUSTEE FOREMAN?
>> THIS IS A COMMENT AND ONE IS ACTUALLY TO DR. MAHOSA.
DR. MAHOSA, I NOTICED THAT THE FUND BALANCE HAS GROWN [INAUDIBLE].
[NOISE] I CONSTANTLY DON'T SEE SCHOOLS STRUGGLING TO GAIN RESOURCES THAT THEY NEED.
I THINK IT IS NOW TIME FOR US TO LOOK AT HOW DID WE GET MORE OF THESE FUNDS INTO THE SCHOOLS.
WE'RE NOT IN THE BUSINESS FOR SAVING MONEY, WE'RE IN THE BUSINESS TO EDUCATE CHILDREN.
I CERTAINLY ONE OF BE MINDFUL OF HAVING THAT TWO MONTHS OPERATING INCIDENCE.
BUT I ALSO WANT TO BE MINDFUL OF ALL OF THESE CHILDREN, PARTICULARLY COMING BACK AFTER COVID IN LAST YEAR THAT WE SEE HOW WE CAN IN FACT MOVE MONEY TO HELP THESE CHILDREN AND FIND SOME WAY TO SUPPORT OUR [NOISE] CHILDREN'S [INAUDIBLE].
>> I THANK YOU FOR THE COMMENT.
ACTUALLY, OUR FUND BALANCE IS GOING IN THE OTHER DIRECTION.
DWAYNE, YOU WANT TO GIVE A FURTHER EXPLANATION? IT'S GOING TO BE ACTUALLY LESS THAN IT WAS LAST YEAR.
WHEN WE STARTED THE SCHOOL YEAR AT THE TOP LEFT, THE UNASSIGNED FUND BALANCE WAS 662 MILLION.
IF YOU LOOK AT THE BOTTOM RIGHT CORNER, THE UNASSIGN PROJECTED BASED ON THE CURRENT BUDGET, IF WE WOULD HAVE REVENUE AND EXPENDITURES ARE EXACTLY THE SAME AS 578 MILLION.
[00:05:03]
>> [INAUDIBLE] WHAT IS THE 923 MILLION.
YOU SAID BEGINNING FUND BALANCE JULY 1ST 2021.
>> [NOISE] CORRECT. THE BEGINNING UNASSIGNED FUND BALANCE WAS 662 MILLION.
>> I'M JUST LOOKING AT THE [INAUDIBLE] AND I KNOW YOU HAVE ASSIGNED, BUT I'M ALSO LOOKING AT THAT FIRST COLUMN.
>> YES. THE TOTAL FUND BALANCE OF ALL ASSIGNED, UNASSIGNED, AND INVENTORY AND ALL OF THAT IS 923 MILLION.
>> I'M LOOKING ON THE OTHER SIDE WHICH IS 596.
I'M ALSO LOOKING AT 578 MILLION.
MY POINT REMAINS [INAUDIBLE] IS IS THAT WE HAVE CHILDREN STRUGGLING TO MAKE IT ANY SCHOOLS.
I THINK WE ARE NOT IN A BUSINESS FOR SAVING MONEY, WE'RE IN THE BUSINESS OF EDUCATING CHILDREN.
IF THERE'S AN OPPORTUNITY, BECAUSE I'LL BE TALKING ABOUT THIS MORE [NOISE] AS WE TALK ABOUT THE STAFFING IN OUR PATIENTS.
BECAUSE I JUST THINK IT'S IMPORTANT THAT WE STAY WITHIN OUR BOUNDARIES OF THE TWO MONTHS OPERATING EXPENSES OR WE DO NOT JUST CONTINUE TO SACK AWAY MONEY.
THAT'S NOT WHAT WE ARE HERE FOR. THAT'S MY OPINION.
>> ANY OTHER QUESTIONS? GREAT.
WE'RE ONTO ITEM 5.3, REPORTING STATUS TO THE MAINTENANCE WORK ORDER SYSTEM.
>> BECAUSE AS PART OF THE AUDIT THAT WAS COMPLETED, RELATED WORK ORDER.
S THE LAST TIME WE MET, WE IDENTIFY THAT WE'D MET ALL THE GOALS.
IF YOU LOOK AT THE GOAL NUMBER 1, CURRENTLY OUR AVERAGE AGE AS OF THIS REPORT WAS 12 DAYS.
IF YOU LOOK AT GOAL NUMBER 2, WE'VE ADDED ONE.
THE NUMBER OF WORK ORDERS WE WERE TRYING TO GET THAT DOWN FROM THE 3,000 DOWN TO 2,000.
THAT WASN'T PART OF THE AUDIT, BUT MAINTENANCE CAME UP WITH THAT ADDITIONAL GOAL TO NOT ONLY DECREASE THE AVERAGE AGE, BUT ALSO INCREASED THE ACTUAL NUMBER THAT IS OUTSTANDING.
THAT IS OUR NEW FRONTIER OF OUR WORK ORDER SYSTEM THAT WE'RE TRYING TO DO.
THE REST WILL SHOW THE NUMBER OF WORK ORDERS THAT HAVE BEEN HANDLED IN THE AGE.
THE ONE QUESTION THAT I DID HAVE.
WE WERE REPORTING THIS IN RELATION TO THE FINDINGS OF THE AUDIT TO GIVE THIS TO THE COMMITTEE.
THE QUESTION IS, DO YOU WANT TO CONTINUE WITH THIS REPORT QUARTERLY, WHICH I GET THIS REPORT FOR MAINTENANCE EVERY WEEK.
WE CAN SURELY DO THAT OR IF YOU WANTED A DIFFERENT FREQUENCY, THAT'S FINE TOO.
>> I THINK THAT'S ALL SHE WAS GOING SAY.
DWAYNE, JUST A COUPLE OF QUESTIONS REGARDING THE MAINTENANCE WORK ORDERS, IS THIS JUST SPECIFICALLY FOR MAINTENANCE AND NO OTHER TYPE WORK THAT'S BEING DONE AND IN THE SCHOOLS?
>> THIS IS FOR THE ROUTINE WORK ORDERS. YES, MA'AM.
>> THERE ARE OTHER WORK ORDERS THAT MAY BE A PROJECT OR-
>> [OVERLAPPING] THAT'S WHY I ASKED THAT QUESTION.
>> THIS IS ONLY THE ROUTINE PORTION.
>> IS THERE A WAY TO COUPLE THE OTHER SO THEY CAN GET A CLEAR UNDERSTANDING OF WHAT IS ACTUALLY OUTSTANDING?
>> YES, WE CAN DO THAT FOR SURE.
>> WE HAVE THOSE ITEMS AND OBVIOUSLY, IF WE'RE REDOING A PARKING LOT, THAT MAY BE A LONG LEAD, OBVIOUSLY, BUT WE DO HAVE ALL THAT, SO YES, WE CAN PROVIDE THAT.
>> [NOISE] YEAH, I WAS HOPING YOU CAN PROVIDE ME A LITTLE MORE CONTEXT AROUND THE NUMBER OF OPEN WORK OR BELOW 2000.
I'M JUST ASKING FOR A LITTLE MORE CONTEXT AROUND THAT AND HOW YOU CAME TO THAT NUMBER.
>> MR. BATES, MEETINGS WITH HIS TEAM, OBVIOUSLY THEY WERE CELEBRATING, THEY MET ALL THE GOALS.
THEN THERE WAS LIKE, OKAY, WHAT OTHER THINGS CAN WE DO?
[00:10:01]
AS THEY WENT THROUGH AND IDENTIFIED, THEY BELIEVE THAT OVER THE BREAKS, WE WON'T BE GETTING ANY ADDITIONAL WORK ORDERS, WILL BE ABLE TO CATCH UP ON MORE OVER THE BREAKS.THEIR BELIEF WAS THAT THEY COULD BE ABLE TO FINISH 1,000 OF THEM OVER THE THANKSGIVING AND CHRISTMAS HOLIDAY, WHICH WOULD MAKE US HAVE 2,000 OUTSTANDING.
THAT'S JUST THEIR INTERNAL GOALS THAT THEY BELIEVE THAT THEY CAN DO.
>> BECAUSE WE'RE TRYING TO USE THE TWO BREAKS AND I WOULD THROW IN THEIR SPRING BREAK, LET'S JUST SAY WOULD BE APRIL.
THEN ONCE WE GET TO 2,000, THE GOAL WOULD BE JUST TO KEEP IT IN THAT BALLPARK.
>> OKAY. I WOULD JUST ADD MY CONGRATULATIONS.
I'M THRILLED THAT YOU GUYS ARE AT THIS LEVEL AND WAS HAPPY AT THE LAST AUDIT COMMITTEE MEETING, IT LOOKS LIKE YOU'VE EVEN FURTHER PROGRESS SINCE THEN. I'M VERY PLEASED.
TO ANSWER YOUR QUESTION THOUGH ABOUT THE FREQUENCY OF THAT REPORTING ON THIS.
THE REASON WHY WE WERE HAVING THIS ON A QUARTERLY BASIS IS BECAUSE IT HAD COME OUT OF AN AUDIT THAT IT WAS A DIARY OF SOME IMPROVEMENT AND THEN FOR AWHILE WAS NOT IMPROVED.
FROM MY PERSPECTIVE, GIVEN THAT THE LAST TWO AUDIT COMMITTEE MEETINGS HAVE SHOWN DRAMATIC IMPROVEMENT, I FOR ONE WOULD BE CONTENT WITH THIS NOT BEING NECESSARILY AN AGENDA ITEM ON AN AUDIT COMMITTEE MEETING, BUT RATHER SOMETHING THAT'S JUST INCLUDED IN AN EMAIL UPDATE TO THE BOARD ON A PERIODIC BASIS.
I DON'T THINK, GIVEN MAJORITY HAVE ADDRESS ALL THE POINTS THAT WERE RECOMMENDED BY THE AUDIT, I'M NOT SURE THAT THIS IS.
>> WE COULD DEFINITELY INCLUDE IT IN ONE OF THE WEEKLY UPDATES.
>> YEAH. I THINK THAT WOULD BE FINE FROM MY PERSPECTIVE.
>> GREAT. ANY OTHER FINAL QUESTIONS OR COMMENTS? WE'RE ON TO ITEM 5.4 REPORT ON FISCAL YEAR 2020, 2021 E-RATE PROGRAM AUDIT WITH WHITLEY PENN.
>> GOOD AFTERNOON TRUSTEES AND DR. HANNAH HALLSON MY NAME'S [INAUDIBLE] GARCIA.
I'M A PARTNER WITH WHITLEY PENN.
WE WERE ENGAGED TO PERFORM THE DISTRICT'S E-RATE PERFORMANCE AUDIT.
I'LL START AGAIN. GOOD AFTERNOON, MEMBERS OF THE BOARD OF TRUSTEES AND DR. HANNAH HALLSON.
I'M A PARTNER WITH WHITLEY PENN.
WE WERE ENGAGED TO REFORM THE DISTRICT'S E-RATE PERFORMANCE AUDIT FOR THE FUNDING YEAR ENDING JUNE 30TH, 2021.
WE'VE COMPLETED THAT AUDIT AND ISSUED OUR REPORT EARLIER THIS MONTH.
THAT THE SCOPE OF THE AUDIT INCLUDED TESTING IN SEVERAL AREAS INCLUDING THE REQUIRED TRAINING, CONFLICT OF INTERESTS, GIFTING, PROCUREMENT, PROPER COMPLETION OF THE FCC FORMS, ADMINISTRATION OF THE E-RATE ASSETS IN THE PROGRAM, AND THE RESULTS OF OUR TESTING DID IDENTIFY A COUPLE OF OBSERVATIONS AND RECOMMENDATIONS THAT WE NOTED IN OUR REPORT.
THE FIRST IS RELATED TO THE AREA OF TRAINING.
ALL E-RATE PERSONNEL ARE REQUIRED TO RECEIVE ANNUAL TRAINING.
THERE WERE A COUPLE OF EMPLOYEES IN THAT SAMPLE, THEY DID NOT RECEIVE THE TRAINING DURING THE YEAR.
IT WAS A SAMPLE OF 40 OF NEARLY 500 EMPLOYEES IN THE POPULATION.
THEN THERE WERE FOUR EMPLOYEES WHO DID RECEIVE THE TRAINING, BUT IT HAPPENED OUTSIDE OF THE YEAR UNDER AUDIT.
WE RECOMMENDED TO THE DISTRICT TO IMPLEMENT SOME PROCEDURES TO MONITOR THAT LIST AND ENSURE THAT EMPLOYEES ARE RECEIVING THE TRAINING BEFORE THE END OF THE YEAR AND AS CLOSE AS POSSIBLE.
FOR THE BEGINNING OF THE YEAR, THE TRAINING COULD BE IMPACTFUL AND BENEFIT THE YEAR UNDER AUDIT.
IN THE AREA OF E-RATE ASSETS, WE DID TEST 150 DIFFERENT ASSETS ACROSS 10 LOCATIONS.
WE DID IDENTIFY SOME INSTANCES WHERE THE INFORMATION IN THE DISTRICTS DATABASE DID NOT MATCH THE SOURCE DOCUMENTATION.
ON PAGE 10 OF THE REPORT, OF THOSE 150 E-RATE ASSETS, 64 OF THOSE HAD INCORRECT FUNDING REQUESTS NUMBERS AND THE DATABASE FOR THE ASSETS WERE FOUND IN A DIFFERENT LOCATION THAN WHAT THE DISTRICT HAD IN ITS RECORDS.
TWENTY-SIX OF THOSE 150 HAD INCORRECT PRICING INFORMATION.
THE PURCHASE PRICE DID NOT AGREE TO THE SUPPORTING DOCUMENTATION.
WE HAD FIVE OF THOSE ASSETS THAT IN THE DATABASE WERE SHOWN IN A RECEIVING TYPE STATUS WHEN THEY WERE ACTUALLY INSTALLED IN AN ACTUAL LOCATION.
TWO OF THE DEVICES HAD BEEN REPLACED IN THE NEW ITEM THAT REPLACE THE ORIGINALLY PURCHASED ITEM HAD NOT BEEN UPDATED.
FOUR OF THOSE ASSETS CANNOT BE LOCATED AT THE CAMPUS.
ONE ASSET WAS SHOWN AS BEING TRANSFERRED TO ANOTHER LOCATION, BUT THE DATABASE HAD NOT BEEN UPDATED FOR THAT.
[NOISE] THOSE WERE THE TWO OBSERVATIONS AND RECOMMENDATIONS IN THE REPORT.
DO YOU ALL HAVE ANY QUESTIONS ABOUT THE AUDIT, THE PROCEDURES, THE PROCESS OF THIS REPORT? I'D BE HAPPY TO TAKE THOSE QUESTIONS AT THIS TIME.
>> [NOISE] I'LL DIRECT YOUR ATTENTION TO PAGE 9 OF YOUR REPORT.
THE SECOND PARAGRAPH, WHICH IS WHAT CAUGHT MY ATTENTION AND IT SAYS,
[00:15:01]
"OUR AUDIT WAS NOT DESIGNED TO IDENTIFY ALL DEFICIENCIES AND INTERNAL CONTROLS THAT MIGHT BE SIGNIFICANT DEFICIENCIES OR MATERIAL WEAKNESSES AND THEREOF." SINCE WE'VE BEEN IN E-RATE JAIL AT THIS DISTRICT, I WAS REALLY CONCERNED JUST WITH THAT STATEMENT IN THE E-RATE PROJECT.YOU MIGHT WANT TO TELL [INAUDIBLE] WHAT THEY GOT TO WORK AND EVEN HAVE THAT STATEMENT IN THE AUDIT.
>> THE DISTRICT ISN'T CURRENTLY UNDER ANY COMPLIANCE AGREEMENT WITH THE FCC.
THIS AUDIT, THE DISTRICT HAS IMPOSED ON ITSELF EACH YEAR TO MAKE SURE THAT IT IS FOLLOWING ALL APPLICABLE RULES, REGULATIONS, POLICIES, AND PROCEDURES.
THE REASON THAT STATEMENT IS ON OUR REPORT IS BECAUSE THE AUDIT PROCEDURES WE PERFORM OR TO OBTAIN REASONABLE ASSURANCE FOR US TO BE ABLE TO SAY THAT WE HAD IDENTIFIED ANYTHING AND EVERYTHING.
WE'D HAVE TO TEST 100 PERCENT OF ALL THE ACTIVITY AND TRANSACTIONS AND ASSETS THAT THE DISTRICT HAS EVER PURCHASED WITH THE E-RATE FEDERAL PROGRAM.
THAT'S JUST NOT WHAT WE WERE ENGAGED TO DO.
THAT'S THE PURPOSE AND THE REASON BEHIND THAT LANGUAGE IN OUR REPORT.
>> DO YOU KNOW HOW WE DO OUR YEARLY E-RATE AUDIT?
>>THE HISTORY WITH THE DISTRICT? [OVERLAPPING] YES. I'M AWARE.
>> THAT STATEMENT'S STILL A CONCERN TO ME.
THEN IF YOU JUST GO TO PAGE 10 [NOISE] AND THEN LOOK AT THE ASSETS, AND YOU ONLY CHECKED 10 LOCATIONS? WE HAVE 230 SCHOOLS AND OUT OF THE 10 LOCATIONS, 64 HAD INCORRECT FUNDING REQUEST NUMBERS.
THAT'S ALMOST HALF, AS SOME WOULD SAY.
THEN 26 INCORRECT PURCHASE PRICES.
SOME WOULD SAY FOUR OUT OF 10 LOCATIONS.
>> [NOISE] YES. GOOD AFTERNOON.
>> I CAN SPEAK TO BOTH OF THOSE ITEMS, THE 64 AND PLEASE UNDERSTAND THAT WE AGREE WITH YOU THAT THE RECORD KEEPING NEEDS TO IMPROVE IN THIS AREA.
BUT I WOULD DESCRIBE THE 64 INSTANCES AS A CLERICAL ERROR.
LET ME EXPLAIN HOW THIS CAN HAPPEN.
THE FUNDING REQUEST NUMBER IS DIFFERENT THAN THE FISCAL YEAR.
BUT YOU CAN UNDERSTAND THAT A PERSON WHO'S ENTERING A REQUISITION MAY JUST NATURALLY DEFER TO THE FISCAL YEAR THAT THEY'RE ENTERING THE TRANSACTION FOR NOT KNOWING THAT THE FUNDING REQUEST YEAR WAS LAST YEAR OR THE YEAR BEFORE THAT.
>> WHY WOULD THEY NOT KNOW THAT?
>> I THINK IT'S JUST A MATTER OF TRAINING, MATTER OF REINFORCING, AND PEOPLE THINKING THAT THE TRANSACTION THAT THEY'RE ENTERING RIGHT NOW IS PART OF THE CURRENT FISCAL YEAR.
[OVERLAPPING] WE VIEW THIS AS A TRAINING ISSUE.
>> I'VE BEEN CONCERNED IF YOU HAD HALF OF THEM, 64 OUT OF 150, THAT'S ALMOST HALF, CLOSE TO HALF, CLOSE ENOUGH TO HALF FOR ME.
THEN JACK SINCE YOU'RE UP HERE, I KNOW AND YOU KNOW THAT THERE HAVE BEEN A PROBLEM WITH THE ASSETS AND TRACKING THE ASSETS.
AGAIN, THIS IS A SAMPLING OF 10 LOCATIONS THAT WERE IN THESE SCHOOLS AND NOT IN THIS.
>> THE ENTIRE DISTRICT WAS IN THE INITIAL POPULATION AND THE WAY WE DEVELOP THAT SAMPLE, WE ROTATE EACH YEAR WHICH CAMPUSES WE GO AND TEST ASSETS AT.
IN INSTANCES WHERE THERE'S CAMPUSES WHERE WE IDENTIFY ANY DISCREPANCIES, WE INCLUDE THAT CAMPUS IN THE NEXT YEAR'S E-RATE PERFORMANCE AUDIT AS PART OF THE FOLLOW-UP.
>> OKAY. DO WE KNOW WHERE THESE CAMPUSES ARE BECAUSE IT'S NOT IN THE REPORT?
>> YES. I CAN SEND THAT TO MANAGEMENT.
>> YEAH. I'D LIKE TO SEE THE CAMPUS BECAUSE THERE HAD BEEN SOME ISSUES WITH KEEPING UP WITH THE DEVICES.
I'LL STOP THERE. BUT I DO HAVE SOME CONCERNS ABOUT THE INITIAL STATEMENT.
>> IF I RECALL FROM THE LAST MEETING, WE HAD THE EXAMPLE PROVIDED THAT SOME OF THE ASSETS THAT WERE MISLABELED INCLUDED THINGS LIKE CABLES THAT TECHNICIANS WERE CARRYING AROUND.
CAN YOU GIVE ME EXAMPLES OF THE ASSETS THAT ARE MENTIONED HERE? EXAMPLES OF THE MISLABELED ASSETS THAT YOU HAVE INCLUDED IN THIS REPORT.
[00:20:03]
LET ME GO BACK FOR A MOMENT TO THE BIGGER NUMBERS ON THE PAGE THAT I THINK.
THE 64, NOW THOSE WERE INDIVIDUAL LINE ITEMS ON THE PURCHASE ORDER THAT MAY HAVE MANY HUNDREDS OF LINE ITEMS. ON THE 26, I WANT TO MAKE SURE THAT THEY GET TO YOUR QUESTION.
I THINK WE'VE DISCOVERED THAT THIS IS A POTENTIAL SYSTEM QUALITY OR A DATA QUALITY ISSUE BETWEEN OUR TWO SYSTEMS, AND LET ME EXPLAIN THAT.
WHEN WE ENTER AN ITEM FOR AN E-RATE PURCHASE INTO OUR ORACLE SYSTEM WHERE WE WRITE OUR PURCHASE ORDERS, LET'S SAY THAT THIS IS A $500 PIECE OF EQUIPMENT OR A $500 NETWORK SWITCH.
THE DISTRICT ACTUALLY PAYS NOT THE FULL AMOUNT FOR THAT $500 SWITCH BECAUSE OF THE E-RATE DISCOUNTS.
WE MAY BE PAYING $50 ON THAT, EVEN THOUGH IT'S A $500 ASSET.
IT'S THAT DATA PIECE TRANSLATING BETWEEN THE 50 AND THE 500, I THINK, THAT CAUSES THIS ITEM IN THE REPORT.
TO YOUR QUESTION SPECIFICALLY ABOUT THE TYPE OF ASSETS THAT WE'RE TALKING ABOUT, THESE ARE NETWORK SWITCHES AND CABLES, AND I THINK THAT SPECIFICALLY THE ITEM THAT YOU'RE REFERRING TO WOULD BE THE FOUR ASSETS AT STOCKARD MIDDLE SCHOOL.
THAT WOULD INCLUDE A SWITCH, A CABLE, ANOTHER MODULE ON THAT INDIVIDUAL COMPONENT.
IT MAY NOT ACTUALLY BE FOUR SWITCHES, IT'S FOUR COMPONENTS ASSOCIATED WITH ONE ASSET, WHICH BY THE WAY WE FOUND OUT WAS IN THE ROOF TILE WHICH HAD BEEN MOVED IN THE ROOM AND NOT VISIBLE UPON THE ADDITIONAL INSPECTIONS.
IT'S THOSE TYPES OF THINGS, I THINK, THAT THAT COME OUT IN THESE AUDITS.
>> THEN I SEE MANAGEMENT HAS RESPONDED WITH BOTH RECOMMENDATIONS, AND HAVE TIMELINE FOR IMPLEMENTATION.
THIS WILL BE INCLUDED IN THE FOLLOW-UP?
>> YES, MA'AM. I WOULD DESCRIBE OUR SOLUTION TO THESE ISSUES IN THE FOLLOWING WAYS.
I THINK NUMBER 1, WE NEED TO UNDERSTAND THESE DATA ISSUES BETWEEN THE SYSTEM TO FIX THOSE INTERFACES.
THAT'S MORE OF A SOFTWARE DEVELOPMENT ISSUE THAT WE'RE GOING TO WORK WITH THE [INAUDIBLE] VENDOR AND THE ORACLE TEAM AND SEE IF WE CAN IDENTIFY AND FIX THAT.
THE SECOND PIECE IS REALLY AROUND THE TRAINING SO THAT WE REINFORCE TRAINING FOR THE ACCOUNTING TECHNICIANS WITH THE CLERKS THAT ARE ENTERING THIS DATA TO MAKE SURE THEY UNDERSTAND THE DIFFERENCE BETWEEN A FISCAL YEAR AND A FUNDING REQUEST YEAR, AND HAVE ALL THE APPROPRIATE RESOURCES TO DO THE DATA ENTRY CORRECTLY.
THEN THE LAST PIECE THAT WE POINT TO IN OUR MEASURED RESPONSES, WE HAD A COUPLE OF VACANCIES.
WE'RE MOVING AGGRESSIVELY TO FILL THOSE VACANCIES AND TRAIN UP THOSE NEW EMPLOYEES TO MAKE SURE THAT WE'RE STAYING ON TOP OF THIS INFORMATION.
>> THANK YOU FOR THAT EXPLANATION.
>> AS FAR AS THE FOLLOW-UP DATABASE, AND THIS IS MORE DIRECTED TOWARD THE AUDIT DEPARTMENT, DO YOU ALL KEEP THOSE IN YOUR FOLLOW-UP AUDIT DATABASE, THE E-RATE? THEN ANY OTHER EXTERNAL AUDIT RECOMMENDATIONS THAT MIGHT COME UP?
>> THEY'RE NOT PHYSICALLY IN THE DATABASE.
>> YOU CAN COME UP TO THE MIC?
>> THANK YOU. TRUSTEES, MISS STEVENS, WE DON'T PHYSICALLY CUT THEM INTO OUR TEAMMATE, PAULO, DATABASE.
IT'S SEPARATE. WE HAVE SOME OTHER REPORTS THAT WE'VE DONE OVER THE LAST YEAR OR SO.
THEY HAVE BEEN KEPT SEPARATE SINCE THEY PHYSICALLY WEREN'T DONE INTERNALLY, BUT WE HAVE A MANUAL METHOD TO TRY THEM.
>> THAT'S SOMETHING YOU REPORT OUT WHEN YOU DO YOUR FOLLOW-UP.
I THINK IT'D BE HELPFUL IN THE FOLLOW-UP SECTION OF THE AUDIT COMMITTEE TO INCLUDE BOTH INTERNAL AND EXTERNAL. IT MIGHT BE HELPFUL.
>> I HAVE A FEW QUESTIONS AND COMMENTS.
CAN YOU HELP ME UNDERSTAND IF THE FEDS WERE DOING AN ASSESSMENT OF OUR E-RATE PROGRAM, HOW THESE 64 AND 26 MEMBERS WOULD BE EVALUATED BY THEM IN BROADER CONTEXT OF THE E-RATE PROGRAM, AND WHAT PENALTIES OR FINES IF ANY COULD WE INCUR IF WE HAD THESE SAME PERCENTAGE RESULTS?
>> [OVERLAPPING] CAN ANSWER THAT.
>> THE PERFORMANCE AUDIT WE PERFORM IS A LOT MORE GRANULAR AND MORE DETAILED BECAUSE WE'RE ACTUALLY COMPARING, ARE YOU FOLLOWING EVEN YOUR LOCAL POLICIES,
[00:25:01]
ON TOP OF WHAT THE FEDERAL GOVERNMENT REQUIRES.WE'RE FOLLOWING AT THE E-RATE ASSET AND THE NUMBER OF INSTANCES, BUT ONE THAT WOULD STAND OUT TO THE FEDERAL GOVERNMENT WOULD BE THE E-RATE ASSETS THAT COULD NOT BE LOCATED.
EVERYTHING ELSE WAS DATA ENTRY CLERICAL.
THAT'S JUST INTERNAL IN-HOUSE THINGS THAT THE DISTRICT NEEDS TO WORK ON.
BUT THAT DOESN'T VIOLATE ANY TYPE OF FEDERAL REQUIREMENT OF ANY SORT.
THE E-RATE ASSETS THAT COULD BE LOCATED, HOWEVER, WOULD BE SOMETHING THAT THE FEDERAL GOVERNMENT WOULD HAVE ISSUE WITH.
>> I APPRECIATE THAT. I WAS GOING TO TRANSITION TO THOSE.
IT LOOKS LIKE 16 ISSUES TO ME REGARDING THE ACTUAL ASSET, AND THEN THE 64 AND THE 26 NUMBERS THAT WE'VE TALKED ABOUT SO FAR ARE DATA ENTRY PROBLEMS. THE FEDS WOULD NOT ASSESS THE DATA ENTRY PROBLEMS AS SOMETHING TO WHICH WE SHOULD BE FINED OR [OVERLAPPING].
>> FOR THE OTHER 16 OUT OF 150, JACK, I REMEMBER VIVIDLY BEING HERE IN THIS ROOM A YEAR AGO HAVING THIS SAME CONVERSATION AFTER THE E-RATE AUDIT AND THAT NUMBER WAS LOWER THAN IS NOW ON A PERCENTAGE BASIS.
I WAS UPSET WITH HOW HIGH IT WAS THEN AND YOU TOLD ME SOME THINGS YOU WERE GOING TO DO TO MAKE SURE THAT IT WAS A LOWER NUMBER THE NEXT TIME WE HAD THIS CONVERSATION.
NOW WE'RE HERE A YEAR LATER AND IT'S ACTUALLY A HIGHER NUMBER [OVERLAPPING].
I FEEL MORE STRONGLY THAN I DID A YEAR AGO IN ASKING, WHAT ARE WE GOING TO DO ABOUT THIS? THIS IS AN ONGOING PROBLEM.
LAST YEAR YOU TALKED ABOUT SOME TACTICAL THINGS THAT YOU THOUGHT WOULD MAKE IT BETTER, AND THAT DIDN'T SEEM TO HAVE HAPPENED.
WHAT ARE WE GOING TO DO DIFFERENTLY THIS TIME?
>> AGAIN, I THINK IT HAS TO DO WITH THE RESOURCING AND THE TRAINING AND DOUBLING DOWN ON EACH OF THOSE THINGS TO MAKE SURE THAT WE'RE STANDING ON THE TOP.
I THINK THE OTHER THING THAT WE CAN DO DIFFERENTLY GOING FORWARD, AND THEN I THINK THIS IS PART OF THE RECOMMENDATION, IS TO JUST PROACTIVELY DO MORE VALIDATION ON OUR END.
>> ARE WE DOING OUR OWN ONGOING AUDITS?
>> YEAH, WE DO. THAT WORK IS ACTUALLY DONE BY THE ASSET MANAGEMENT TEAM, BUT MY UNDERSTANDING IS THEIR PRACTICES, THEY DO A GROUP OF SCHOOLS EVERY YEAR.
NOW CLEARLY, I DON'T THINK WE HAVE ENOUGH RESOURCES TO INVENTORY EVERY SCHOOL, EVERY YEAR.
>> IN THE GRAND SCHEME OF HOW MUCH MONEY WE GET FOR E-RATE, YOU CAN DEFINITELY AFFORD TO HAVE ENOUGH PEOPLE TO DO EVERY SCHOOL EVERY YEAR.
>> YOU MENTIONED IN THE MANAGEMENT RESPONSE PLANS HERE THAT YOU'RE PLANNING TO FILL TWO POSITIONS?
>> ARE THOSE TWO POSITIONS GOING TO BE DOING THESE ONGOING AUDITS?
>> YES, SIR, AND AS WELL DOING THE DATA ENTRY.
AGAIN, WE'RE GOING TO INVEST IN THE TRAINING OF THOSE FOLKS TO MAKE SURE THAT THEY KNOW THE DIFFERENCE IN SOME OF THE PITFALLS.
WE'RE TRYING TO BUILD THOSE SYSTEM EDITS IN TOO THAT WOULD PREVENT SOMEBODY FROM MAKING ONE OF THOSE MISTAKES.
>> THOSE TWO POSITIONS, ARE THOSE TWO NEW POSITIONS THAT WOULD BRING US TO A TOTAL OF TWO PEOPLE? OR DO WE ALREADY HAVE SOME PEOPLE THAT HAVE FILLED POSITIONS THAT ARE ALREADY DOING THIS?
>> I THINK ONE OF THEM IS VACANT, AND BEEN VACANT FOR A WHILE.
THE OTHER ONE IS NET NEW AND THAT WE'VE TAKEN A VACANCY FROM ANOTHER AREA AND ADDED IT, RECOGNIZING THAT WE NEED MORE RESOURCES ON THIS.
>> YOU HAVE BUILT A NEW POSITION AND AN ADDITIONAL PERSON THAT'S GOING TO BE HIRED?
>> GIVEN WHAT'S AT STAKE HERE AND GIVEN THE HISTORY IN THIS DISTRICT, I WOULD ENCOURAGE YOU TO INVEST IN EXTRA POSITIONS HERE.
I DON'T KNOW IF TWO IS THE RIGHT NUMBER, YOU'RE THE EXPERT ON WHETHER IT SHOULD BE 2, 3, 4, OR 5, BUT I REALLY DON'T WANT TO BE HAVING THE SAME CONVERSATION AGAIN NEXT YEAR.
IF WE HAVE TO HAVE TWO OR THREE OR FOUR OR 20 OF THEM, LET'S GET AUDITS OF ALL THE SCHOOLS DONE ON A RECURRING BASIS THROUGHOUT THE YEAR.
>> GREAT. THANKS. ANY OTHER QUESTIONS? WE'RE ON TO ITEM 5.5, CONSIDERING A POSSIBLE ACTION TO REVIEW AND RECOMMEND TO THE FULL BOARD OF TRUSTEES APPROVAL OF AN ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDING JUNE 30TH, 2021, THAT'S INCLUDED IN A REPORT BY THE DISTRICT'S EXTERNAL AUDITORS, WEAVER, REGARDING THE 2021 FISCAL YEAR AUDIT.
THIS IS FOR JENNIFER RIPKA, PARTNER, ASSURANCE SERVICES, AND CLAIRE, WHO'S THE SENIOR MANAGER OF ASSURANCE SERVICES.
DO I HAVE A MOTION TO REVIEW AND RECOMMEND TO THE FULL BOARD OF TRUSTEES' APPROVAL OF THE ANNUAL CONFERENCE OF FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30TH, 2021?
IT'S BEEN MOVED BY TRUSTEE GARCIA AND SECONDED BY TRUSTEE MARSHALL THAT WE REVIEW AND RECOMMEND TO THE FULL BOARD OF TRUSTEES APPROVAL OF ANNUAL CONFERENCE OF FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30TH, 2021.
WITH THAT LONG-WINDED INTRODUCTION, [LAUGHTER] WE'D LOVE TO HEAR FROM YOU GUYS BEFORE TAKING A VOTE. WELCOME.
>> THANK YOU. GOOD AFTERNOON TRUSTEES AND [INAUDIBLE].
MY NAME IS JENNIFER RIPKA AND I'M THE PARTNER ON THE ENGAGEMENT FOR THE EXTERNAL AUDIT.
THEN I HAVE CLAIRE HERE WITH ME AND SHE'S THE SENIOR MANAGER ON THE ENGAGEMENT.
[00:30:02]
>> I REMEMBER WHEN YOU WERE THE SENIOR MANAGER ON THE ENGAGEMENT AND YOUR PARTNER WAS SITTING NEXT TO YOU. [LAUGHTER]
>> RIGHT. JUST A TIDBIT YOUNGER AND SMALLER.
[LAUGHTER] WELL, I DON'T KNOW IF WE'RE GOING TO BE ABLE TO PUT THROUGH ON THE DEAL, SO WE'LL JUST GO MANUAL.
>> CAN YOU GUYS HELP THEM FLIP? YOU CAN JUST [OVERLAPPING].
>> SHE'S GOING TO DO IT FOR YOU, YOU CAN JUST LET HER KNOW WHEN YOU WANT TO SWITCH.
>> WE'LL GO THROUGH THE AUDITOR COMMUNICATIONS AND AUDIT RESULTS, INCLUDING SOME GENERAL FUND HIGHLIGHTS.
THEN WE'LL TURN IT OVER TO YOU ALL FOR QUESTIONS.
IN THE BACK, WE HAVE AN APPENDIX THAT INCLUDES AUDIT SCHEDULE AND PROCESS, HIGHLIGHTS OUTSIDE OF THE GENERAL FUND, STANDARDS THAT WERE IMPLEMENTED DURING FISCAL YEAR 21, AND THEN THE MANAGEMENT LETTER AND THE COMMUNICATION TO THOSE CHARGED WITH GOVERNANCE.
WE'LL STICK THAT IN THE BACK SO YOU ALL DON'T HAVE TO SIT THROUGH AN HOUR PRESENTATION.
AS FAR AS INTRODUCTIONS GO, THIS NEXT SLIDE IS JUST A SNAPSHOT OF WEAVER ITSELF.
OUTSIDE OF EXTERNAL AUDIT, WE ALSO HAVE ADVISORY SERVICES THAT WE CAN PERFORM AND TAX SERVICES, ETC.
THEN ON THE NEXT PAGE, WE HAVE SOME INFORMATION ABOUT OUR GOVERNMENT PRACTICE.
BOTH CLAIRE AND I SPECIALIZE IN WORKING WITH GOVERNMENTAL ENTITIES, [NOISE] INCLUDING SCHOOL DISTRICTS.
I'M A LEADER OF OUR SCHOOL DISTRICT PRACTICE.
THEN THE TECHNICAL REVIEWER ON THIS ENGAGEMENT IS SARAH DEMPSEY.
SHE IS THE PARTNER IN CHARGE OF OUR GOVERNMENT PRACTICE.
THEN SHE ALSO SITS ON THE AICPA STATE AND LOCAL GOVERNMENT PANEL.
WE ALREADY TALKED ABOUT THE ENGAGEMENT LEADERSHIP, SO I'LL MOVE ON TO THE AUDITOR COMMUNICATIONS AND AUDIT REVIEWS.
FIRST UP, WE HAVE ISSUED OUR INDEPENDENT AUDITOR'S REPORT ON THE FINANCIAL STATEMENTS, AND WE'VE ISSUED AN UNMODIFIED OPINION, THAT IS THE HIGHEST LEVEL OF ASSURANCE THAT CAN BE PLACED ON A SET OF FINANCIAL STATEMENTS.
IT'S A CLEAN OPINION, SO VERY FAIR.
WE'VE ALSO ISSUED AN INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROLS.
THOSE INTERNAL CONTROLS ARE GOING TO SPAN ACROSS THE DISTRICT.
IT'S GOING TO INCLUDE INTERNAL CONTROLS OVER THE FINANCIAL STATEMENTS THEMSELVES.
THEN THE NEXT REPORT IS OUR REPORT ON COMPLIANCE AS IT RELATES TO FEDERAL FINANCIAL ASSISTANCE, AND THEN THE INTERNAL CONTROLS OVER FEDERAL FINANCIAL ASSISTANCE.
THERE WERE NO MATERIAL WEAKNESSES, NO SIGNIFICANT DEFICIENCIES THAT WERE NOTED IN EITHER ONE OF THOSE REPORTS.
THEN WE ALSO ISSUED AN UNMODIFIED OPINION OR A CLEAN OPINION ON COMPLIANCE WITH REGARDS TO A SINGLE AUDIT.
WE ISSUE A LETTER TO THOSE CHARGED WITH GOVERNANCE, SO THIS AUDIT COMMITTEE.
IT INCLUDES IN THERE OUR RESPONSIBILITY UNDER GENERALLY ACCEPTED AUDITING STANDARDS, AND THEN GENERALLY ACCEPTED GOVERNMENT AUDITING STANDARDS.
THEN ALSO DISCUSSES OUR RESPONSIBILITY UNDER UNIFORM GUIDANCE.
UNIFORM GUIDANCE IS THE COMPLIANCE REQUIREMENTS THAT ARE RELATED TO THE FEDERAL FINANCIAL ASSISTANCE.
WE ALSO ISSUED A LETTER TO MANAGEMENT, AND WITHIN THAT LETTER, WE NOTED NO RECOMMENDATIONS.
THIS IS THE FIRST YEAR THAT WE HAVEN'T HAD ANY RECOMMENDATIONS; THE FIRST WE EVER HAD RECOMMENDATIONS FOR SIGNIFICANT DEFICIENCIES OR MATERIAL WEAKNESSES; SO A REALLY GREAT JOB.
WE DID, THIS YEAR, IMPLEMENT GASB 84, THE EFFECT WITH REGARDS TO THAT STANDARD.
THOSE AGENCY FUNDS ARE RELATED TO THE STUDENT ACTIVITIES, AND THOSE CAN NO LONGER BE NOTED AS AGENCY FUNDS; THEY WILL BE REFERRED TO AS CUSTODIAL FUNDS.
WITH THAT, THOSE CUSTODIAL FUNDS PREVIOUSLY WOULD HAVE BEEN NOTED IN THE STATEMENTS AS JUST ASSETS AND LIABILITIES; BUT NOW YOU HAVE ASSETS, LIABILITIES, AND THE NET POSITION WITH REGARDS TO THOSE FUNDS.
SO IT'S JUST A DIFFERENT MEASUREMENT FOCUS.
NO REAL CHANGE IN HOW THOSE [INAUDIBLE] FUNDS ARE RUN OR ANYTHING LIKE THAT; IT'S REALLY JUST AN ACCOUNTING CHANGE.
I'M GOING TO TURN IT OVER TO CLAIRE SO SHE CAN GO THROUGH THE GENERAL FUND.
WE'D LIKE TO DO A COMPARISON OF FISCAL YEAR 20, COMPARED TO FISCAL 21 IN THIS PIE GRAPH.
THE LARGEST PIECE OF IT IS YOUR UNASSIGNED FUND BALANCE,
[00:35:03]
WHICH CAN BE USED REALLY ON ANY TYPES OF ITEMS; IT'S NOT CONSIDERED RESTRICTED OR ASSIGNED BY MANAGEMENT.AGAIN, THIS IS JUST YOUR GENERAL FUND.
THE NEXT LARGEST PIECE IS YOUR ASSIGNED FUND BALANCE, AND THAT'S ASSIGNED BY MANAGEMENT.
THAT MOSTLY IS YOUR [INAUDIBLE] THAT HAVE HAD LEFT OVER FROM A BUDGET HERE, FISCAL 21 INTO FISCAL 22, SO THEY ARE SETTING THOSE ASIDE TO BE USED FOR NEXT YEAR.
THEN THE SMALLEST PIECE IS CONSIDERED NON-SPENDABLE, WHICH MEANS IT'S ALREADY BEEN SPENT IN TERMS OF INVENTORY AND PREPAID ITEMS. THEN ON YOUR NEXT SLIDE, THAT TOTAL FUND BALANCE, THAT PIE GRAPH ALTOGETHER, TOTALED 923.3 MILLION, WHICH WAS AN INCREASE OF 53.9.
AGAIN, THIS IS JUST YOUR GENERAL FUND, AND THAT WAS AS A RESULT OF REVENUES EXCEEDING EXPENDITURES BY 82.8 MILLION.
THERE WERE ALSO NET TRANSFERS TO OTHER FUNDS; TRANSFERS IN AND OUT, TOTALING NET OF 20.6 MILLION.
THEN THERE WERE PROCEEDS FROM SALE OF ASSETS OF 384,000.
THEN THERE WERE NET EXTRAORDINARY ITEMS; A COMBINATION OF YOUR RESOURCES AND USES, AND THAT'S REALLY THE TORNADO EVENT IN THE WINTER STORM [INAUDIBLE] FREEZE, TOTALING A DEFICIT 8.8 MILLION.
THEN YOUR UNASSIGNED FUND BALANCE INCREASED 0.7 MILLION TO 662.5, WHICH WAS APPROXIMATELY 41 PERCENT OF YOUR CURRENT YEAR OF FISCAL 21 TO GENERAL FUND EXPENDITURES.
THEN YOUR ASSIGNED FUND BALANCE, THAT PIECE THAT MANAGEMENT HAS SET ASIDE INCREASED 56.7 MILLION TO 246.7.
PRIMARILY, LIKE I SAID, THAT STUDIO OUTSTANDING ENCUMBRANCES, THAT MAX OVER AT JUNE 30TH OF 21, SUBSEQUENTLY PROVIDED IN THE 22 BUDGET, AS WELL AS SET ASIDE THAT FOR THE COVID-19 MITIGATING THE LEARNING LOSS, VIRTUAL SCHOOLING, ETC., AND THEN COVID-19 SAFETY MEASURES.
THAT WAS THE REAL REASON FOR THAT BIG INCREASE.
THEN YOUR BUDGET TO ACTUAL, IF YOU LOOK IN YOUR BIG ACTUAL REPORT, THAT'S TOWARDS THE BACK OF THE REPORT, AND THAT IS YOUR GENERAL FUND ACTUAL REVENUES EXCEEDED YOUR BUDGETED REVENUES BY 18.1 MILLION.
THAT WAS DUTY YOUR TAX REVENUE AND FEDERAL PROGRAMS REVENUE BEING LARGER THAN BUDGET.
THEN GENERAL FUND BUDGETED EXPENDITURES EXCEEDED YOUR ACTUAL EXPENDITURES BY 226.6 MILLION.
THAT'S JUST DUE TO POS AND OTHER PROJECTS THAT COULD NOT BE COMPLETED AT [INAUDIBLE] DUE TO DIFFERENT REASONS GOING ON, AND SO THOSE COULD NOT BE EXPENSED DURING THE YEAR, AND SO THE BUDGET WAS HIGHER FOR THOSE ITEMS. THEN OVERALL, YOUR GENERAL FUND HAD A FAVORABLE BUDGET VARIANCE OF 253.3 MILLION.
JUST TO FOLLOW UP ON OUR PRIOR YEAR FINDINGS, THERE WERE TWO FINDINGS LAST YEAR THAT WE BROUGHT BEFORE YOU, AND WE WANTED TO FOLLOW UP ON THOSE.
THE FINDINGS LAST YEAR WERE, WE IDENTIFIED TWO DIFFERENT BOND OFFICE INVOICES, TOTALING 1.1 MILLION, WHICH, BASED ON THEIR PROCESSES, CASH WAS PROPERLY CREDITED FOR THE COSTS; IT WAS INCURRED PRIOR TO THE PAYMENT.
THEY WERE TRYING TO GET IT INTO A LIABILITY, BUT THEY GET CASH INSTEAD [BACKGROUND].
WHEN WE WERE TESTING OUR ACCOUNTS PAYABLE IN CASH ITEMS THIS YEAR, WE DID NOT NOTICE ANY OF THOSE ISSUES THIS YEAR.
EVERYTHING WAS PROPERLY ACCOUNTED FOR IN THE SEARCH FOR UNRECORDED LIABILITIES.
THEN THE SECOND COMMENT WAS IN THE CAPITAL ASSETS.
THERE WERE SOME LAST ADDITIONS, TOTALING 8.9 MILLION, THAT WERE INCLUDED BOTH IN YOUR CONSTRUCTION IN PROGRESS, OR CIP, AS WELL AS YOUR CAPITAL ASSETS, AND SO IS INCLUDED TWICE.
THIS YEAR WHEN WE WERE GOING CAPITAL ASSET TESTING, GOING THROUGH THAT DETAILED WORK, WE DID NOT NOTICE ANY ITEMS THAT WERE ACCOUNTED FOR TWICE.
ANYWAY, RECONCILIATIONS AND THINGS LIKE THAT THAT WERE PERFORMED THIS YEAR TO MAKE SURE EVERYTHING WAS ACCOUNTED FOR PROPERLY.
THAT IS IT. THAT'S WHAT OUR CONCLUSION'S LIKE.
>> YEAH, THIS IS THE CONCLUDING SLIDE.
OF COURSE, THERE'S MORE INFORMATION IN THE BACK, BUT WE WANT TO TURN IT OVER TO YOU ALL FOR ANY QUESTIONS THAT YOU MIGHT HAVE WITH REGARDS TO ANY OF THE REPORTS THAT ARE INCLUDED IN THE ANNUAL COMPREHENSIVE FINANCIAL REPORT OR IN THE BACK FROM THAT [NOISE].
>> THANK YOU FOR YOUR PRESENTATION.
I'LL JUST BEGIN BY GIVING A CONGRATULATIONS TO THE SUPERINTENDENT AND TO DWAYNE AND HIS TEAM.
I'VE BEEN ON THIS AUDIT COMMITTEE FOR, I THINK, FIVE YEARS, AND THIS IS CERTAINLY THE FIRST TIME I'VE SEEN AN UNMODIFIED OPINION WITH NO MATERIAL WEAKNESSES, I KNOW IT'S NOTED.
[00:40:03]
THAT'S TRULY AN ACCOMPLISHMENT, AND IT MAKES, I THINK OUR DISCUSSION SHORT AND SWEET HERE.THANK YOU, GUYS. ANY QUESTIONS OR COMMENTS FROM ANYONE?
>> THANK YOU FOR THOSE COMMENTS, AND I WANT TO APPRECIATE THE WORK OF [INAUDIBLE], BUT ALSO OUR STAFF.
BACK IN 08, IT WAS INCREDIBLY AWFUL, AND WE HAD A GOAL EVERY YEAR TO REDUCE MATERIAL WEAKNESSES AND DEFICIENCIES.
I DIDN'T KNOW IF I'D STILL BE ALIVE AND GET THIS KIND OF [INAUDIBLE] [LAUGHTER].
THANK YOU TO MY TEAM AND ALL THE HARD WORK OF EVERYBODY HELPING IN MAKING THIS A TEAM EFFORT.
BUT WE STILL GOT TO KEEP GETTING BETTER.
WE HAVE A MOTION ON THE FLOOR, WITH A SECOND.
ALL THOSE IN FAVOR OF ACCEPTING THE MOTION WORTHINESS TO REVIEW AND RECOMMEND TO THE FULL BOARD OF TRUSTEES APPROVAL OF THE ANNUAL CONFERENCE A FINANCIAL REPORT.
ALL THOSE IN FAVOR, PLEASE RAISE YOUR HAND.
ALL THOSE OPPOSED [BACKGROUND].
>> THE MOTION PASSES TWO, WITH ONE ABSTAIN.
>> YOU HAVE JUST ADOPTED A MOTION TO REVIEW AND RECOMMEND TO THE FULL WORD TRUSTEES, APPROVAL OF THE ANNUAL CONFERENCE, A FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30TH, 2021.
WE'RE ON TO ITEM 5.6, CONSIDERING TYPE POSSIBLE ACTIONS TO ACCEPT IN THE FINAL INTERNAL AUDIT REPORTS.
DO I HAVE A MOTION TO ACCEPT THEM IN THE FINAL INTERNAL AUDIT REPORTS?
>> IT'S BEEN MOVED BY TRUSTEE GARCIA, AND SECONDED BY TRUSTEE FOREMAN, AND WE ACCEPT AND MAKE FINAL INTERNAL AUDIT REPORTS PRESENTATION [NOISE].
>> TRUSTEE MARSHALL, FOREMAN, GARCIA, ACTING SUPERINTENDENT, [LAUGHTER] J. THOMPSON, ROBERT RUBEL, CHIEF INTERNAL AUDITOR, I FAILED TO INTRODUCE MYSELF EARLIER.
WE HAVE TWO OTHER REPORTS TO PRESENT.
ONE OVER A VENDOR MASTER FILE MAINTENANCE.
VENDOR FILE IS IMPORTANT BECAUSE EVERYTHING THAT'S NOT PAYABLE GOES TO ACCOUNTS PAYABLE, PAYMENT PROCESS WITH VALID VENDOR.
[INAUDIBLE] WANT THE [INAUDIBLE] CONTROLS TO BE SET UP CORRECTLY, AND FOLLOWED.
WE'VE MADE THREE RECOMMENDATIONS ON THIS AUDIT.
ONE ISSUE WE FOUND THAT ALL REQUIRED DOCUMENTATION FOR VENDORS WEREN'T IN THE ELECTRONIC FILES.
IT'S NOT AN AUTOMATED PROCESS THAT TELLS YOU A CERTAIN PIECE OF DOCUMENTATION IN THERE.
YOU HAVE TO MANUALLY GO THROUGH.
SOMEBODY LOOKED THROUGH A SAMPLE, FOUND 17 EXCEPTIONS AND MADE THE OBVIOUS RECOMMENDATION TO REVIEW THE REQUIRED DOCUMENTATION AS NEW VENDORS ARE SET UP.
GO BACK AND LOOK AT CURRENT SUPPLIERS THAT ARE PERMITTED TO BE PAID, MAKE SURE ALL THEIR DOCUMENTATION IS PRESENT, AND THEN UPDATE POLICIES AND PROCEDURES TO REFLECT THE MOST CURRENT AND EFFECTIVE PROCESSES THAT ARE BEING USED.
SECOND RECOMMENDATION OR OBSERVATION WE MADE IS THAT THERE IS AUTO-MANUAL MAINTENANCE REQUIRED IN THE VENDOR FILE.
SOME OF THAT IS DUE TO THE FACTORY SET UP VENDOR SO THAT THEY CAN RECEIVE SOLICITATION AND THEN A FLAG IS SET IF THEY HAVE AN APPROVED BOARD DOC AND CAN BE PAID FOR A CERTAIN PERIOD OF TIME.
WE MADE A RECOMMENDATION TO IT TO PERFORM CLEANUP FOR THE CURRENT VENDOR FILE BY PERFORMING A REVIEW OF THAT, WHAT'S CALLED [INAUDIBLE] FLAG.
ENSURE THAT VENDORS HAVE BEEN ACTIVE FOR A PERIOD OF TIME OR INACTIVE IF THE CASE MAY BE AND THEN DELETE VENDORS AS THEY GET OLD OR NOT USED OVER A PERIOD OF TIME.
THEN OF COURSE, UPDATE POLICIES AND PROCEDURES REFLECT THAT MOST CURRENT PROCEDURE.
THIRD ISSUE ON VENDOR FILE IS THAT CHANGES MADE ARE AREN'T MONITORED TO REVIEW AND APPROVE CHANGES.
CHANGES ARE MADE, BUT THERE'S NOT A WAY TO REVIEW CHANGE HISTORY, AND AN AUDIT TRAIL IN THERE THAT CAN BE THEN APPROVED.
THAT HELPS KEEP INAPPROPRIATE CHANGES TO THE VENDOR FILE, I.E., ADDRESSES, BANK INFORMATION, ETC, FROM HAPPENING OR MISTAKE FROM GETTING INTO THE SYSTEM AND NOT BEING CAUGHT IN A TIMELY MANNER.
WE MADE A RECOMMENDATION TO STRENGTHEN THAT CHANGE CONTROL PROCESS TO ENSURE THAT THERE IS AN APPROVAL PROCESS AND/OR MONITORING APPROPRIATE FOR THE VOLUME OF VENDORS IN THERE.
[00:45:07]
I WILL ENTERTAIN ANY QUESTIONS ON THE VENDOR FILE AUDIT.ONE REASON I DIDN'T VOTE FOR THE AUDIT REPORT WAS BECAUSE I READ THIS REPORT AND I WAS DISTURBED BY SOME OF THE INFORMATION IN THE REPORT JUST LOOKING AT.
THE FACT THAT LAST YEAR WE HAD A PROCUREMENT COMMITTEE THAT CHANGED A LOT OF THE POLICIES FOR PROCUREMENT.
BUT WHEN I LOOK AT THIS, IT APPEARS TO ME AND YOU TELL ME IF I'M WRONG, IS WE ARE NOT IN COMPLIANCE IN SEVERAL AREAS WITH THE TEXAS EDUCATION CODE, FINANCIAL ACCOUNTING NUMBER 9, TEXAS LOCAL SECTION CODE 176.
THESE ARE CODES THAT YOU HAVE PRODUCED IN THIS PARTICULAR DOCUMENT.
IT'S GOING TO TAKE A LITTLE READING [INAUDIBLE].
I KNOW, THERE ARE LOTS OF NOTES.
I DON'T PLAN TO GO THROUGH THEM ALL.
YES, MA'AM. THOSE ARE THE CRITERIA THAT WE REFERENCED, AND WE FOUND EXCEPTIONS AND IT SHOULD BE COVERED IN THE POLICIES.
YEAH, AND IT'S NOT COVERED BASED ON THIS AUDIT.
I DEFINITELY HAVE SOME CONCERNS.
CONCERNS BEGIN WITH THINGS LIKE THE [INAUDIBLE], SO THIS CAN BE DIRECTED AT YOU.
I KNOW YOU'RE MY FRIEND. IF I LOOK ON PAGE 12, AND I'M TRYING TO JUST GO PAGES.
I'LL GO BACKWARDS ON SOME OF THEM.
[NOISE] IN THEIR RESPONSE, THEY GIVE YOU THE INDIVIDUALS NAMES AND PURCHASING THAT WORK WITH THESE PARTICULAR AREAS.
BUT THESE INDIVIDUALS DO NOT WRITE POLICY.
THEY DO NOT DETERMINE WHAT THEIR WORKLOAD IS OR WHAT THEY'RE GOING TO DO.
THAT'S A MANAGEMENT PROBLEM AND NOT THE EMPLOYEES, AND THAT'S AT THE TOP OF THE PAGE.
I JUST NOTICED THAT BOTH INDIVIDUALS WERE NAMED AND THAT'S PART OF THE RESPONSE I BELIEVE, THAT THEY GAVE YOU.
READING THIS REPORT, PART OF THE ISSUE IS THE ISUPPLIER MODULE THAT IS CREATING A SITUATION WHERE [NOISE] THEY'RE NOT ABLE TO GO IN AND MAKE CHANGES.
DID I READ IT CORRECTLY? YES, MA'AM.
IS THAT CORRECT? EVA NORTON, DEPUTY CHIEF TO HELP ANSWER SOME MORE DETAILED QUESTIONS. [LAUGHTER] WHAT'S THE NAME? EVA NORTON.
ALL RIGHT, EVA. [NOISE] AM I READING THAT CORRECTLY, THAT THE ISUPPLIER SEEMS TO BE AN ISSUE AND IF IT IS AN ISSUE, WHEN DID WE START USING IT? I BELIEVE, WE STARTED USING FOR THE CURRENT VENDOR [INAUDIBLE] FILE IN 2016.
IF WE STARTED IN 2016, WE'RE JUST NOT IDENTIFYING THAT PROBLEM, THAT BECOMES A EVEN BIGGER PROBLEM.
DOES THAT MAKES SENSE? YES, MA'AM. I WOULD AGREE THERE'S SOME ISSUES WITH THE ISUPPLIER.
THIS IS IMPORTANT CONTROL TO PROCESS EXPENDITURES IN THE DISTRICT.
PART OF IT IS AN EFFICIENCY ISSUE.
I WAS NOT HERE WHEN IT WAS INSTALLED.
I DON'T KNOW HOW IT WAS INSTALLED AND ALL THE DIFFERENT FEATURES OR HOW IT SHOULD BE.
WE SURE WANT TO LOOK WHAT'S THE BEST WAY TO HAVE UTILIZED THIS.
ISUPPLIER HAS A BIG FEATURE WHERE THE ACTUAL VENDOR CAN PUT IN THEIR OWN INFORMATION.
BUT THE FACT THAT WE NEED AN AUDIT TRAIL TO SEE WHO APPROVED IT.
THAT'S ONE OF THE ISSUES WE BROUGHT FORWARD.
IT MIGHT ENTAIL A MORE DETAILED REVIEW OF HOW THAT MODULE WAS IMPLEMENTED.
I WOULD THINK SO JUST READING THIS REPORT BECAUSE THERE SEEMS TO BE A LOT OF GAPS AND HOLES IN THE WAY THE REPORTING TAKES PLACE.
IT LOOKS LIKE BEFORE 2017 WE WERE REQUIRING CERTAIN DOCUMENTATION FROM VENDORS AND NOW WE DON'T REQUIRE THE DOCUMENTATION? THERE WERE SOME CHANGES.
YES, THERE WERE, AND THEN IT WENT BACK
[00:50:03]
TO REQUIRING AGAIN AS OF CURRENT, IS MY UNDERSTANDING.IT WAS ON SOME OF THE DOCUMENT.
THERE'S VENDORS IN THE SYSTEMS WHERE CERTAIN DOCUMENTATION WASN'T REQUIRED.
IT SEEMED LIKE IT WAS PRETTY SIGNIFICANT DOCUMENTATION.
FOR ME, A CONFLICT OF INTEREST STATEMENT IS SIGNIFICANT, AND YOU'VE GOT VENDORS THAT WERE USING THAT DO NOT HAVE A CONFLICT OF INTEREST STATEMENT.
THAT'S AN ISSUE. I'M ON, I GUESS, THIS IS PAGE 6.
WE FOUND NUMEROUS ERRORS IN THE DOCUMENTATION REQUIREMENT, THAT'S WHY WE MADE AND WE SAMPLED.
WE DIDN'T REVIEW A 100 PERCENT EITHER, TRYING TO GO THROUGH 100 PERCENT.
[OVERLAPPING] I DON'T KNOW EXACTLY THE EXTENT OF THE IMPACT.
YOU HAVE A WINDOW THAT SHOWS YOU THERE'S AN IMPACT? YES, MA'AM.
[NOISE] THAT WOULD BE A CONCERN OF MINE.
IT SAYS THE CURRENT PROCESS DOES NOT REQUIRE A PROSPECTIVE SUPPLIER ANY DOCUMENTATION AS TO WHETHER CONFLICT EXIST AT THE REGISTRATION LEVEL, AND THEREFORE IS OBTAINED REGARDING NOTICE OF THE POLICY.
I'VE ALWAYS HAD CONCERNS ABOUT CONFLICT OF INTEREST.
WE'VE HAD A CONFLICT OF INTEREST EVEN ON THIS BOARD.
I'VE ALWAYS HAD CONCERNS ABOUT THAT.
FOR US TO HAVE VENDORS THAT WE ARE NOT LOOKING AT CONFLICT OF INTEREST STATEMENTS, THAT'S A REAL CONCERN.
AGAIN, I WOULD STRONGLY SUGGEST THAT WE GO BACK AND LOOK AT THE VENDORS WHO DO NOT HAVE THOSE STATEMENTS AND ENSURE THAT THEY GET THOSE THINGS.
THERE'S SOME RESPONSE TO THIS AUDIT, WE ARE GOING THROUGH ALL THE VENDOR FILES TO VERIFY THAT THE DOCUMENTATION THAT'S REQUIRED IS THERE.
OKAY. DO WE KNOW WHEN WE WILL HAVE THAT COMPLETED? THAT'S I THINK IT'S GOING TO BE THE FISCAL YEAR.
OKAY. WHICH IS INTERESTING BECAUSE [INAUDIBLE] IN THE FISCAL YEAR FOR THE DISTRICT AND WE GET A NEW BUDGET, SO THAT'S REAL INTERESTING.
THIS IS ALSO ON PAGE 5, WHICH ALSO CAUGHT MY ATTENTION.
HOW IN THE WORLD CAN WE HAVE FOUR SUPPLIERS WITH NO TAX IDENTIFICATION NUMBERS? HOW DO WE MANAGE THAT? YOU KNOW? I DON'T KNOW.
WAS THE TA IN THERE, IT'S JUST WHAT VALIDATED OR DO WE KNOW IT WAS [INAUDIBLE]? I FEEL SOMEBODY ELSE COMING TO HELP ME.
HI. I'M SHIRLEY [INAUDIBLE] . SHELLY KELLY.
>> WITH WHICH DEPARTMENT, SHELLEY?
>> THESE ARE NOT NECESSARILY AWARDED SUPPLIERS, THEY'RE POTENTIAL SUPPLIERS, THEY COULD BE POTENTIAL SUPPLIERS, MEANING THEY'RE NOT CURRENTLY UNDER A CONTRACT, OR CURRENTLY AWARDED.
TO MY UNDERSTANDING THE WAY IT'S SET UP IS, ALL THE POTENTIAL SUPPLIERS ARE SUPPOSED TO GO INTO THIS DATABASE, AND THEN FROM THERE, WHEN THEY'RE AWARDED, THEY CAN GATHER THE INFORMATION AFTER THAT AGAIN, ALMOST A DUPLICATION OF PROCESSES.
THE SELECTIONS THAT DID NOT HAVE THE TAX IDENTIFICATION WERE PROBABLY NOT AWARDED SUPPLIERS, IT'S NOT SOMEONE THEY'RE ACTIVELY PAYING.
>> WHEN YOU SAY PROBABLY NOT, TO ME THAT DOESN'T MEAN THAT THEY WERE NOT.
>> [OVERLAPPING] THE WORD PROBABLY MIGHT BE AN ISSUE FOR ME.
I'M JUST SAYING, WHEN I LOOK AT THIS, THERE SEEMS TO BE A REAL ISSUE WITH THIS, AND MAYBE OUR SUPPLIER IS NOT WHO WE NEED AS OUR SOFTWARE, BUT I'LL KEEP IN TOUCH WITH YOU ON TRYING TO ENSURE THAT THIS CHANGE IS SIGNIFICANT.
>> WELL, IT BECOMES PROBLEMATIC AND YOU BRING THAT UP WHEN THERE'S SUPPLIERS IN THERE THAT WE HAVEN'T VALIDATED AND WE HAVEN'T APPROVED FOR PAYMENT, BUT THEY'RE IN THERE, SO IT MAKES IT CONFUSING FOR EVERYBODY.
>> YOU SHOULD HAVE A POTENTIAL SUPPLIER LIST, AND YOU SHOULD HAVE A SUPPLIER LIST.
PART OF THIS SHOULD HAVE ALL OF THE SAME DOCUMENTATION PERIOD, BECAUSE THINGS CAN SLIP THROUGH THE CRACKS BEFORE YOU EVEN KNOW IT,
[00:55:01]
AND I'M ALWAYS SPEAKING FROM MY PERSONAL EXPERIENCE.>> THANK YOU, TRUSTEE FOREMAN. ARE THERE QUESTIONS?
>> TAKE A LOOK AT THE MANAGEMENT RESPONSE PAGE 11, IN HERE WHAT WE HAVE IS POTENTIAL POSSIBLE SOLUTIONS WORKING WITH IT, TWO THINGS ON POINT A, IT TO IMPLEMENT YES OR NO BOX, POSSIBLE FOR REGISTRATION FORM FOR THE VENDOR, AND THEN AT THE B, LAST BULLET POINT ALSO SAYS IF ADDITIONAL SUPPORT OF IT ARE DEVELOPED AND IMPLEMENTED.
IS THAT A CONFIRMED ITEM FOR IT? I DON'T SEE THIS POTENTIAL IT SUPPORT AS PART OF THE UPCOMING IMPLEMENTATION DATES, I ONLY SEE PROCUREMENT SERVICES BUT NOT IT.
>> I DON'T BELIEVE IT'S CONFIRMED, I BELIEVE THAT IT'S IN THE PROCESS, THEY'RE CURRENTLY WORKING WITH THEM.
>> THESE POTENTIAL SOLUTIONS ARE NOT CURRENTLY IMPLEMENTED OR ON SCHEDULED TO BE IMPLEMENTED?
>> YES, I THINK RIGHT NOW THEY'RE HAVING DISCUSSIONS WITH IT AND WE'RE GOING TO KEEP ON IT AND SEE WHAT COMES OUT OF THOSE DISCUSSIONS.
I KNOW THEY HAD A MEETING THIS WEEK, SO IT'S ACTIVE.
>> IT WILL BE ADDED TO OUR AUDITORY TRACKING?
>> TEMPLATES THAT WE CAN SEE IF THEY IMPLEMENT THIS.
>> YES. [NOISE] THAT CONCLUDE IT.
>> ALL RIGHT, I'M GOING TO GO THROUGH THE SHARS AUDIT.
>> SHARS, YES, SIR. DID AN AUDIT ON SCHOOL HEALTH RELATED SERVICES, SHARS, MOST SPECIFICALLY ON THE BILLING PROCESSES SO THAT THE DISTRICT IS REVERSED IN A TIMELY MANNER.
THE REASON WE DID THE AUDIT, OR CAME ON THE PLAN IS A DOLLAR VALUE TO THE DISTRICT FOR OVER 30 MILLION DOLLARS RECOUPED THROUGH MEDICAID IN THIS PROGRAM.
NOW, TO BE VERY SPECIFIC, ABOUT THREE MILLION IS REIMBURSED THROUGH WHAT'S CALLED FEE-FOR-SERVICE OF BILL IS IN THE SYSTEM AND WERE REIMBURSED ON A MONTHLY BASIS.
IT'S A COMPLICATED PROCESS, BUT IF WE DON'T GET THE MONEY ON A MONTHLY BASIS, WHICH IS TIMELY, WE WOULD GET THE MONEY FOR THE COSTS RELATED TO THIS THROUGH THE COST REPORT ABOUT 18 MONTHS LATER.
I PREFACE MY COMMENTS THAT, WE HAD TWO OBSERVATIONS; ONE BEING THAT SOME OF THE CLAIMS COULDN'T BE SUBMITTED BECAUSE OF LACK OF PARENTAL CONSENT.
IT'S AN ODD PROGRAM, YOU CAN PROVIDE SERVICES WITHOUT CONSENT FORM SIGNING, WHICH YOU CAN'T DO AT MEDICAID WITHOUT THE PARENTAL CONSENT FORM SIGNED.
OBVIOUSLY, WE WANT TO GET IT SIGNED, WE MADE RECOMMENDATIONS TO HAVE AN ELECTRONIC SIGNATURE EARLIER IN THE PROCESS, HAVE TRAINING ON GETTING MORE SIGNATURES SO THAT WE CAN BILL AND COLLECT IN A MONTH-TO-MONTH BASIS.
SECOND OBSERVATION THAT WE HAD IS THAT SOME CAN'T BE SUBMITTED BECAUSE THEY DON'T HAVE THE ADMISSION REVIEW DISMISSAL OR THE IEP, THE INDIVIDUAL EDUCATION PROGRAM DOCUMENTATION.
WE HAD TWO CATEGORIES CAN'T BE SUBMITTED, WE WOULD STILL RECOVER THOSE COSTS TO THE COST REPORT, BUT IT WILL TAKE 18 MONTHS.
I THINK IT'S BETTER TO HAVE THE MONEY ON A MONTH-TO-MONTH BASIS, THAT PROGRAM WANTS US TO SUBMIT CLAIMS BECAUSE THAT DOCUMENTS, THE SERVICE PROVIDED TO THE STUDENT.
MANAGEMENT HAS AGREED WITH THAT, WE GOT TO FIGURE OUT A WAY TO GET REVIEW, MONITORING DONE, TO ENSURE DOCUMENTATION IS COLLECTED AND ELECTRONIC SIGNATURES ARE ATTACHED, AND THEN THE DISTRICT WOULD BENEFIT FROM GETTING MONTHLY REIMBURSEMENTS AND NOT HAVING TO WAIT 18 MONTHS.
I WOULD ENTERTAIN ANY QUESTIONS, IF YOU HAVE. [NOISE]
>> [NOISE] WHAT DEPARTMENTS ARE ACTUALLY SUBMITTING THE CLIENTS?
>> [OVERLAPPING] [NOISE] IT'S ALL GOING THROUGH THE SHARS IN FINANCIAL SERVICES, [OVERLAPPING] IT'S FROM ALL ACROSS.
>> [OVERLAPPING] WHAT DEPARTMENTS IN THE DISTRICT? WOULD IT BE THE SCHOOL NURSES, WOULD IT BE THE CLINICIANS, WOULD IT BE THE FAMILY CENTERS, WHAT DEPARTMENTS ARE ACTUALLY INITIATING THE CLAIMS?
>> I BELIEVE PROVIDERS ARE ACTUALLY ABLE TO ENTER SOME INFORMATION WHEN THEY'RE ACTUALLY PROVIDING, THEY HAVE ACCESS TO THE SOFTWARE.
>> ARE THESE OUTSIDE PROVIDERS?
[01:00:13]
>> [BACKGROUND] THE CLAIM IS ALL MANAGED THROUGH THE SHARS DIVISION.
>> THAT'S THE DISD SHARS DIVISION?
>> YES, MA'AM, IT'S IN FINANCIAL SERVICES.
>> IS IT FINANCIAL SERVICES, BUT FINANCIAL SERVICES DOESN'T ACTUALLY SUBMIT THE CHILD FOR THE SERVICE.
>> THAT'S CORRECT. [OVERLAPPING]
>> THAT'S MY QUESTION BECAUSE THE FINANCIAL SERVICES CAN'T FIX THIS PROBLEM, THE PROBLEM WOULD HAVE TO BE FIXED AT THE OTHER END, SO THAT WHOEVER IS SUBMITTING THE SERVICES, MAYBE SPARED, COULD BE OUR NURSES OR OUR CLINICIANS.
>> IT'S THE SPECIAL SERVICES ADMINISTRATORS AND COORDINATORS ON CAMPUSES.
>> THAT WOULD BE THE CLINICIANS [OVERLAPPING] AND THE NURSES WHO MEET WITH THE PARENTS AGAIN.
THEY MAKE THE DECISION ON WHAT SERVICES THEY NEED OR THEY RECOMMEND THE SERVICES, BECAUSE THEY CAN'T GIVE SERVICES TO THE CHILD WITHOUT THE PARENT'S APPROVAL.
SO SOME OF IT IS JUST NOT [OVERLAPPING] JIVING.
>> [OVERLAPPING] THEY DON'T GET THE SAME FORM OBVIOUSLY, I THINK YOUR SPECIFIC QUESTION, THE SERVICE PROVIDERS ARE THE WHOLE TEAM OF NURSES, AUDIOLOGISTS, SPEECH THERAPIST, ANYONE THAT PROVIDES A SERVICE [OVERLAPPING] AT A LOCAL SETTING.
>> THEY WOULD HAVE TO KNOW ABOUT THE IEPS, THEY WOULD HAVE TO GET THE PARENTAL CONSENT TO BE ABLE TO DO THAT, AND FROM WHAT I'M HEARING IS, THAT'S NOT WHAT'S HAPPENING.
>> THOSE WOULD BE THE TRAINER IS NOT THE SHARS DEPARTMENT IN YOUR AREA.
>> THOSE PEOPLE WOULD NEED TO BE TRAINED.
>> EVERYTHING'S FLOWING THROUGH SHARS [OVERLAPPING] FOR THE BILLING PROCESS. [OVERLAPPING]
>> LET ME JUST CLARIFY THAT TO BE CLEAR.
THE PARENTAL CONSENT IS FOR THE REIMBURSEMENT FOR MEDICAID THAT THEY'RE NOT GETTING, IT'S NOT THAT THEY'RE NOT GETTING PARENTAL CONSENT TO PROVIDE A SERVICE.
>> I'M CLEAR. MOST OF THE TIME I'M PRETTY CLEAR.
>> IT'S A COMPLICATED PROGRAM. [OVERLAPPING]
>> IT IS VERY COMPLICATED AND HAVING AN IEP IS ALSO VERY COMPLICATED AND NOT UNDERSTAND THAT.
BUT WHAT I DO KNOW IS THAT, DO YOU WANT TO GET THE SERVICES PAID FOR IN APPROPRIATE TIME OR DO YOU WANT TO WAIT 18 MONTHS AND SPEND MONEY OUT OF YOUR POCKET FOR THE SERVICES?
>> THAT'S THE CORKS OF THE MATTER.
I'M CLEAR ON WHERE THE ISSUES MIGHT BE, IS JUST HOW DID WE FIX THOSE PARTICULAR ISSUES WITH THOSE PARTICULAR DEPARTMENTS, AND THERE ARE A COUPLE OF DEPARTMENTS THAT'S INVOLVED IN THIS PROCESS. [OVERLAPPING]
>> THE SHARS IS INDICATED IN THEIR RANGE OF RESPONSE, THAT THEY'RE GOING TO WORK CLOSELY WITH SPECIAL SERVICES BY TRAINING AS ONE EXAMPLE.
>> YOU'RE GOING TO TRAIN THEM ON HOW TO GET THE INFORMATION.
>> I BELIEVE THEY UNDERSTAND WHAT'S NECESSARY, BUT JUST REEMPHASIZING AGAIN, SPECIFICALLY WITH THE PARENT CONSENT.
THEY'VE GOT THE CONSENT OBVIOUSLY FOR THE ARD MEETING AND THE IEP, [OVERLAPPING] BUT FOR NOW, WE NEED THE ONE STEP FURTHER FOR YOU TO GAIN THAT CONSENT IF THE STUDENT IS ELIGIBLE TO BE ABLE TO GET MEDICARE REIMBURSEMENT.
WE ARE ABLE TO GET IT, AGAIN, IT'S THE TIMING.
THAT'S THE TRAINING WE'RE PROVIDING AS REEMPHASIZING OF THE NECESSITY TO GET THAT COMPLETED AT THE TIME OF THE ARD OR IEP OR WHATEVER SERVICE.
MAYBE THERE NEEDS TO BE AN OPPORTUNITY FOR THOSE PEOPLE WHO ARE ACTUALLY GOING TO ASSIST IN PROVIDING THE SERVICES WITH THE PARENTS TO HAVE EASY ACCESS ON A DASHBOARD OR DATABASE TO BE ABLE TO PULL THAT INFORMATION OUT IMMEDIATELY, SO THAT THEY HAVE IT AND THEN GIVE IT TO THE PARENTS TO WRITE IT DOWN, TRY TO FIGURE OUT HOW TO GET THERE.
[NOISE] EIGHTEEN MONTHS IS A LONG.
>> THANK YOU. ANY OTHER THOUGHTS OR QUESTIONS?
WHEN I SAW THIS INITIAL AUDIT ON MY AUDIT PLAN, THERE WERE TWO PIECES OF THIS THAT I THOUGHT WE WERE AUDITING AND I WANT TO MAKE SURE THAT I UNDERSTAND THE AUDIT CORRECTLY.
ONE IS WHAT YOU DID, WHAT'S VERY CLEAR THAT YOU AUDIT WHICH IS ARE WE GETTING ALL THE MONEY FROM MEDICAID AND WE CAN FOR SERVICES THAT HAVE BEEN PROVIDED AND EVERYONE AGREES THAT HAVE PROVIDED AND WE ARE APPLYING TO GET THOSE FUNDS AND TRYING TO GET THEM AS QUICKLY AS POSSIBLE.
THE SECOND PIECE, WHICH IS UNCLEAR TO ME WHETHER YOU DID AUDIT IT AND
[01:05:02]
THAT'S THE MAJOR OF MY QUESTION IS THE ACCUSATION THAT WE HEAR FROM TIME TO TIME FROM PEOPLE THAT WE HAVE SUBMITTED CLAIMS TO MEDICAID FOR REIMBURSEMENT FOR SERVICES THAT WERE IN FACT NOT PROVIDE.>> I'M GOING TO HAVE TO PREFACE INDIRECTLY BECAUSE WE HAD A CLAIM AND CLAIM INFORMATION IN THE SYSTEM.
THERE WAS A SERVICE PROVIDED, A HEALTH CARE PROVIDER DID SOMETHING AND THERE HAS TO BE DOCUMENTATION.
THEY'RE ATTESTING TO THAT SERVICE PROVIDED.
NOW IF THEY TAKE IT ONE STEP FURTHER.
HOW DID I KNOW THAT WAS DONE? WELL, LIKE WITH ANY HEALTHCARE PROVIDER, THEY ATTEST THEY PROVIDED THAT SERVICE.
WE DON'T TRY AND ASK THE PATIENT DID YOU GET THAT SERVICE? YOU RAISE A GOOD QUESTION.
I WOULD SAY THE DOCUMENTATION THAT GOES IN AND THE PROGRAM ACTUALLY WANTS YOU TO DOCUMENT AND BILL BECAUSE THEN THEY HAVE YOU ON THE HOOK THAT YOU PROVIDED THESE SERVICES AND THERE'S A LARGE NUMBER OF WHAT'S CALLED THE THIRD DIFFERED SERVICES.
>> THAT ARE BLOCKING UP THE SYSTEM, THEY'RE SITTING OUT THERE, THAT WILL THEN EVENTUALLY FLOW INTO THE COST REPORT. WILL GET REIMBURSED.
WE'LL NEVER BE ABLE TO BUILD THOSE IN THE NORMAL PROCESS BECAUSE WE DIDN'T GET THAT CONSENT SIGNED AND WE DIDN'T GET OTHER DOCUMENTATION THAT IT WAS MISSING AND WON'T BUILD.
THE WORST THING WE DO IS BUILD, AND IT WAS INCORRECT OR NOT PROVIDED.
I DON'T KNOW, I'LL HAVE TO THINK ABOUT THAT A LITTLE BIT MORE.
HOW WOULD YOU DESIGN A TEST TO FIGURE OUT THESE [INAUDIBLE] SERVICES.
THESE ARE HUNDREDS OF THOUSANDS OF SERVICES THAT GO INTO THE SYSTEM.
IF EVERYTHING IS DOCUMENTED, IT'LL RELEASE THE BILL THROUGH THE SOFTWARE.
WE GO THROUGH A PROVIDER AND SO ON.
WE DON'T WANT TO GO IN THROUGH IF THEY'RE NOT ALL EVER BE INCLUDED.
>> LET ME JUST RESTATE WHAT I THINK I HEARD YOU SAY.
YOU SAID THAT THE DESIGN OF THE AUDIT DID NOT TEST FOR MY QUESTION?
>> IS IT FAIR TO ASSUME THAT ANY SUBMISSIONS TO MEDICAID THAT WERE DENIED WOULD BE, OR FIRST OF ALL, I GUESS, ARE THERE ANY OF THOSE AND IF THERE ARE SOME OF THOSE, WILL THOSE PERHAPS BE A TEST GROUP THAT COULD BE AUDITED TO SEE IF THEY WERE IN FACT DENIED BECAUSE THE SERVICE WASN'T PROVIDED? BECAUSE THE REASON WHY I ASK AND I THINK WE'VE TALKED ABOUT THIS BEFORE WHEN DESIGNING THE AUDIT PLAN EVERY YEAR, WHICH IS THAT FROM TIME TO TIME, WE GET PARENTS THAT ARE COMPLAINING TO US THAT THEY'VE BEEN TOLD THAT THE DISTRICT, "PROVIDED SERVICES TO THEIR KIDS." THEN IF YOU TRACK IT DOWN, YOU CAN SEE THAT WE SUBMITTED REIMBURSEMENT TO MEDICARE FOR THAT PAYMENT, BUT THEY MAINTAIN THAT THEIR CERTAIN THEIR KID NEVER GOT ANY SERVICE.
THESE ARE ISOLATED ONE-OFF SCENARIOS THAT YOU HEAR ABOUT FROM PARENTS.
BUT IT WOULD BE COMPELLING I THINK IF WE COULD FIGURE OUT AN AUDIT DESIGN THAT WOULD TEST FOR THAT AND THEN HAVE AN OPINION ON WHETHER OR NOT THAT'S ACTUALLY HAPPENING.
BECAUSE IF IT IS HAPPENING, THAT IS A MAJOR FEDERAL PROBLEM.
>> I WAS EAGERLY READING THIS REPORT, LOOKING FOR THE PART OF THE AUDIT REPORT THAT WAS TESTING THAT SECOND PIECE IN ADDITION TO THE FIRST ONE AND I DIDN'T SEE IT AND NOW IT SOUNDS LIKE YOU'RE SAYING THAT'S BECAUSE IT WASN'T TESTED.
FROM MY PERSPECTIVE, WHAT I WAS EXPECTING THIS AUDIT TO BE IS NOT YET COMPLETED.
I'M HAPPY TO VOTE TO ACCEPT THIS AUDIT REPORT AS IT IS AND MAKE IT FINAL WITH THE CAVEAT, THAT IS MY HOPE THAT THIS YEAR'S AUDIT PLAN, WE'LL DO THE SECOND PART OF WHAT I THOUGHT THIS AUDIT WAS GOING TO BE IN THE FIRST PLACE.
>> GOT YOU. YES SIR. THE STATE DOESN'T LOOK AT THESE PROGRAMS TOO AND THAT WOULD BRING THEIR REPORTS BACK.
I DON'T HAVE A FINALIZED REPORT, BUT I CAN BRING THEIR REPORTS BACK TOO SO THAT YOU SEE THE WHOLE PICTURE.
WHAT THE STATE DOES THAT'S ONE OF MY GOALS IS, WE WOULD AUDITS IN SCHOOL NUTRITION, CHILD NUTRITION, BRING ALL EXTERNAL AUDITS BACK TO THE COMMITTEE SO THAT YOU SEE EVERYTHING.
>> I JUST THINK THERE'S ANOTHER COMPONENT OF THIS PARTICULAR DEPARTMENT THAT WE NEED TO GET TO THE BOTTOM OUT SO THAT WE CAN SAY WITH CONFIDENCE TO THE PARENT THAT BRINGS THAT ACCUSATION UP THAT WE BOUGHT IT AND THAT DIDN'T SEEM.
>> [OVERLAPPING] THERE COULD BE MISTAKES.
[01:10:01]
YOU WANT TO REDUCE MISTAKES GOING INTO THE SYSTEM. BUT WE CAN LOOK AT THE.>> THANK SAME THING. I HEAR THE OPPOSITE IS THAT THEY'RE NOT GETTING ALL OF THE SERVICES THAT THEY NEED.
MORE THEN I HEAR THEY'RE NOT GETTING SERVICES, BUT YOU'LL BE IDEAL.
THAT PROCESS, [NOISE] I DON'T KNOW HOW YOU LOOK AT A SITUATION LIKE THAT, BUT THERE'S A LOT OF CONCERN ABOUT SERVICES BEING RENDERED TO OUR CHILDREN.
WHEN YOU'RE LOOKING AT THE PROCESS THAT TRUSTEE MARSHALL IS TALKING ABOUT, I THINK THERE'S AN OPPORTUNITY TO LOOK AT ANY COMPLAINTS REGARDING SERVICES THAT HAVE NOT BEEN RENDERED.
I THINK THAT SHOULD BE A COMPONENT BECAUSE I'M TELLING YOU IT'S GOING TO BE BIGGER THAN I DIDN'T GET THE SERVICE.
WE NEED THE SERVICES THAT ARE NOT BEING RENDERED.
>> GREAT. ANY OTHER THOUGHTS OR QUESTIONS? I BELIEVE WE HAVE A MOTION ON THE 4TH IT HAS BEEN MOVED AND SECONDED THAT WE ACCEPT AND MAKE FINAL INTERNAL AUDIT REPORTS, ALL THOSE IN FAVOR, PLEASE CAST YOUR VOTES BY RAISING YOUR HAND.
>> YOU HAVE JUST ADOPTED THE MOTION TO ACCEPT MY FINAL INTERNAL AUDIT REPORTS.
WE'RE ON TO ITEM 5.7 REPORT ON THE STATUS OF THE SEEMA AUDIT.
>> IN YOUR PACKAGE YOU'LL FOUND THAT REPORT ON THE SEEMA AUDIT OR A CONSULTANT HAS BEEN PERFORMING PAYMENT AT PATIENT REVIEWS ALL FOR SEEMA CONTRACTS.
HE'S CURRENTLY LOOKING ON SEVERAL OF THEM PROPERTIES OF THE BUILDING FOR LABOR AND COST ALLOCATION CHARGES TO THOSE CONTRACTS.
WE HAVE NO MATERIAL ISSUES TO REPORT TO DATE, WE HAD WHICH TOWNSEND ON ZOOM IF WE HAVE ANY SPECIFIC QUESTIONS.
>> JUST A COUPLE OF QUICK QUESTIONS.
>> ON THE SEEMA OF WHAT WE'RE AUDITING IS JUST PAYMENTS.
WE'RE NOT AUDITING ANYTHING ELSE; IS THAT CORRECT?
>> THROUGH THE PAYMENT APPS, BUT NOW HE'S LOOKING INTO THE BILLS REGULAR RATES ARE APPROPRIATE, WHICH WOULD BE SUPPORT FOR OBVIOUSLY CERTAIN PAYMENT APPS.
>> AGAIN IS JUST PAYMENT BASICALLY?
>> IS ALL WE'RE AUDITING ON THESE PARTICULAR PROJECTS? [INAUDIBLE]
>> THEN YOU SAY PAYMENTS TRUSTEE FOREMAN ESSENTIALLY EACH SEEMA AS YOU KNOW, THE PAYMENTS APPLICATION EVERY MONTH.
THE DOCUMENTS ARE ANYWHERE FROM 100 TO 400, 500 PAGES OF DOCUMENTATION SHOWING WHAT THEY ARE ACCOUNTING, SAYING THAT THEY SPENT ON THE PROJECT.
WE'RE LOOKING AT THAT FOR APPROPRIATENESS COMPLIANCE WITH THE CONTRACT, ETC.
ALL THE DOCUMENTATION THAT SHOWS UP THERE.
THE OTHER BIG THINGS THAT WE'RE ALSO HONORING HIM BACKGROUND IS BECAUSE ANY CHANGE ORDERS THAT GET SUBMITTED BY THE SUBCONTRACTORS TO BE FUNDED BY EITHER THE OWNER OR CONTRACT THAT CAME IN SAYING THAT WE ARE IN THE MIDDLE OF THE AUDITING THAT AS WELL.
OF COURSE, WE ARE NOT JUST PAYMENTS, BUT AS BOB MENTIONED, WE'LL BE GOING INTO THE RECORDS OF THE CONTRACT OR MEETING WITH THEM.
WE'D HAVE TO LOOK AT THE UNDERLYING LABOR AND LABOR BURDEN COSTS FOR PAYROLL TAX AND SHORTS HAVE BENEFITS, FOR EXAMPLE, TO MAKE SURE THAT WHAT ARE THE REQUIREMENTS OVER-BILLING US FOR THE LABOR AND LABOR BURDEN.
THAT'S SO THAT'S A BIG PIECE OF EVERY SEEMA AUDIT AND WILL MADE ALL DOING OUR FIRST SET OF AUDITS ON THAT.
>> THE REASON I ASK THAT QUESTION WHEN I LOOK AT THE DOCUMENT, IT DOESN'T INDICATE ANY OF THAT.
BUT WHEN I LOOK AT THIS DOCUMENT, IT DOESN'T INDICATE [NOISE] RIGHT THERE.
THAT'S WHAT I'M LOOKING FOR IN TERMS OF AN AUDIT.
THIS IS JUST PAYMENT VERIFICATION IS THE WAY I LOOK AT THIS.
THIS DOCUMENT IS JUST PAYMENT VERIFICATION.
>> YES. ON THIS WHAT HE REPORTED HERE, AS HE INDICATED, HE'S BEEN AUDITING FROM THE VERY BEGINNING, BOTH THE CONTRACT AND EVERY TIME WE HAVE A GMP, HE REVIEWS THAT GNP BEFORE IT GETS THEN TO THE BOARD.
THERE'S A LOT OF PROCESS, BUT YES, YOU'RE CORRECT.
THIS IS JUST REFERRING TO HIS REPORT ON EXPENSES.
>> I WOULD PREFER THAT WE DON'T USE THIS DOCUMENT AS AN AUDIT,
[01:15:01]
BUT IT'S AN EXPENSE REPORT.>>YES YOU'RE RIGHT. THEY ARE AUDIT.
WHAT WE'RE ANTICIPATING AND OBVIOUSLY WON'T HAVE MODERN REPORTS THAT WILL GO TO THE APPROPRIATE PERSONNEL INCLUDING THE TRUSTEES, THAT WHENEVER WE ISSUE A FORMAL WAY TO RIGHT.
A FINAL AUDIT REPORT WILL BASICALLY SUMMARIZE THE RESULTS OF ALL AUDIT WORK OVER THE LIFE OF THESE JOBS AND WHAT COSTS WAS AVOIDED, ETC.
YOU'RE RIGHT. THIS IS JUST A LITTLE STATUS SAYING WHAT WE'VE BEEN DOING.
>> I DON'T THINK WE SHOULD GET AN AUDIT AT THE END OF THE WORK.
I THINK WE SHOULD HAVE SOME INTERIM AUDITS THAT ADDRESS SOME OF THE ISSUES THAT YOU JUST RAISED, NOT JUST A DOCUMENT WITH THE PRICING.
>> SURE. [INAUDIBLE] THAT'S WHAT WE'RE MENTIONING AND HAVE SOMETHING SUBSTANTIAL TO REPORT THE RESULTS OF THE AUDIT WORK AND WHAT'S BEEN ADDRESSED, ETC. YES, EXACTLY.
THAT WILL BE COVERED IN THE NMR REPORTS.
WE DON'T HAVE A FIRM SCHEDULE FOR THAT NOW, BUT THESE JOBS ARE GOING TO GO FOR ANOTHER COUPLE OF YEARS.
WE'LL PROBABLY HAVE AT LEAST ONE MAJOR INTERMODAL EACH YEAR AND THEN THE FINAL CLOSEOUT ON IT.
>> ANY OTHER QUESTIONS OR COMMENTS? ALL RIGHT.
ITEM 5.8, REPORT ON THE RESULTS OF THE EXTERNAL QUALITY ASSURANCE REVIEW.
>> JUST EASING PACK IS A COMPLETE REPORT THAT WERE RECEIVED AT THE END OF THE ENGAGEMENT FOR THE QUALITY ASSURANCE REVIEW, DALLAS ISD INTERNAL AUDIT DEPARTMENT.
I'D REFER YOU TO PAGE 2 AND GLADLY REPORT THAT WE RECEIVED GENERAL CONFORMANCE ON ALL CATEGORIES IN THE STANDARDS.
YOU CAN SEE THE OVERVIEW HERE.
THERE'S A MORE DETAILED REPORT BY SUBCATEGORY ON PAGE 10 IF YOU WANT TO LOOK AT MORE DETAILED.
I'D LIKE TO CONGRATULATE MY TEAM.
RICHARD SUE IS THE MANAGER ON THIS, KEPT US ON TASK TO GET EVERYTHING, ALL THE INFORMATION PROVIDED, ALL THE INTERVIEWS SET, HELP SET UP ALL THE INTERVIEWS.
WE WORKED ON THIS FOR A YEAR AND A HALF SO I'M VERY HAPPY TO REPORT.
I THINK IT CAME OUT VERY, VERY WELL.
THEY DID MAKE FIVE RECOMMENDATIONS, AND I TAKE THOSE VERY SERIOUSLY.
WE WOULD BE IMPLEMENTING AND YOU COULD READ THEM IN THERE, BUT THE FIVE RELATED COVERED CONTINUE TO BUILD RELATIONSHIPS WITH MANAGEMENT SO WE CAN DO A BETTER JOB.
IMPROVE IT SKILLS ACROSS THE STAFF.
I THINK THAT'S A VERY KEY SKILL AND WE CONTINUALLY STRIVE.
WE HAVE A PLAN THAT HELP US RECRUIT AND/OR DEVELOP SKILLS.
THERE IS A REQUIREMENT AND I'D POINT THAT OUT THAT THE AUDIT PLAN AND RISK ASSESSMENT INCLUDE A MANDATE IN THE STANDARDS, INCLUDE GOVERNANCE OVER IT AREAS, AND THE ETHICS PROGRAM.
WE'D IDENTIFY THAT, IT WAS IN THE RISK ASSESSMENT, PORTIONS OF THAT WERE ON THE AUDIT PLAN.
BECAUSE OF THAT IN-DEPTH RISK ASSESSMENT THAT WE COMPLETED IN THE BEGINNING OF THE YEAR, WE WERE GIVEN CREDIT.
BUT WE WILL HAVE TO INCLUDE MORE IT GOVERNANCE AUDITS AND AN AUDIT OVER THE DISTRICT WIDE ETHICS PROGRAM.
A SUGGESTION TO TIE THE SCOPE OF THE AUDIT FROM PLANNING TO FIELD WORK TO REPORTING CONSISTENTLY THROUGHOUT OUR ENGAGEMENT AND OUR REPORTING PROCESS.
THEN THE ISSUE KIND OF CAME UP EARLIER, MAPPING RISK AND OUR ASSURANCE, OUR AUDITS TOGETHER EACH YEAR.
ONE BEING THE IDEA OF EXTERNAL AUDITS, KEEPING UP WITH THOSE AND THOSE RECOMMENDATIONS.
SO WE WOULD MAP IN A RISK AND WHERE CERTAIN AREAS ARE COVERED.
EXTERNAL FINANCIAL AUDITS, E-REY, SCHOOL NUTRITION.
WE HAD AN AUDIT ON MENTAL HEALTH SERVICES BILLING.
I HAVEN'T GOTTEN A FINAL REPORT BACK ON THAT, BUT WE WOULD BRING THOSE BACK TO THE COMMITTEE AND SHOW AND THE OVERALL RISK ASSESSMENT HOW ALL THE DIFFERENT VARIOUS GROUPS INCLUDING INTERNAL AUDIT COVER THE RISK IDENTIFIED.
>> I WOULD JUST KICK US OFF BY CONGRATULATING YOU AND YOUR TEAM.
I KNOW THIS WAS A GRUELING EFFORT THAT'S GONE ON A LONG TIME.
I PARTICIPATED IN THE PROCESS AND IT WAS VERY THOROUGH AND NOT ONLY ARE YOU GUYS GENERALLY CONFORMING ON OVERALL, BUT I THINK ON SLIDE 10, SHE JUST HAD UP,
[01:20:02]
IT SHOWS EVERY SINGLE ONE OF THE DOZENS OF ATTRIBUTES, STANDARDS AND PERFORMANCE STANDARDS WERE ALL GENERALLY CONFORMING.THAT'S QUITE AN ACCOMPLISHMENT AND KUDOS TO YOU AND YOUR STAFF.
I THINK A COUPLE OF YEARS AGO WE PROBABLY WOULD NOT HAVE BEEN IN THIS SPOT.
[NOISE] JUST TO SAY THAT THERE'S STILL WORK TO BE DONE IN REGARD TO INTERNAL AUDIT.
I DON'T WANT ANY THOUGHTS THAT WE ARE WHERE WE NEED TO BE BASED ON THAT LAST COMMENT.
WHEN I LOOK AT THE STAKEHOLDER FEEDBACK, PARTICULARLY UNDER GROUP 2, ONLY FIVE OF THE NINE, THEY'VE GOT 11 ON THE BOARD AND EXTERNAL ADVISORS.
THEN ONE OF THE THINGS THAT REALLY STRUCK ME, I'M KIND OF CONCERNED ABOUT THE BOARD AND ADVISORS, BUT KIND OF STRUCK ME WAS GROUP 5, WHICH IS OUR CAMPUS ADMINISTRATION IN THE LOW PARTICIPATION RATE.
>> YES, MA'AM. THOSE ARE THE QUESTIONNAIRES THAT THE TEAM SENT DIRECTLY TO INDIVIDUALS.
IT WAS A PRINCIPAL, HADN'T BEEN INVOLVED IN AN AUDIT.
THAT WAS THE POPULATION THAT WE SENT THOSE QUESTIONNAIRES TO.
I HAD SENT A REMINDER OUT, YOU PROBABLY GOT ONE FROM ME.
I JUST HAVE TOTAL NUMBERS, THAT'S ALL THEY GAVE ME.
I'M DISAPPOINTED THAT WE DIDN'T GET MORE FEEDBACK.
THAT'S THE OPPORTUNITY TO GIVE US FEEDBACK.
WE'RE WORKING HARD TO IMPROVE.
WE'RE NOT THE BEST INTERNAL AUDIT DEPARTMENT IN K12 IN THE NATION, BUT WE'RE STRIVING TO GET THERE.
IF THIS WAS NOT DONE THIS WAY, I DON'T BELIEVE BEFORE WITH THE ONLINE SURVEYS PROBABLY MIGHT HAVE BEEN PAPER BEFORE.
I THINK A LESSON LEARNED IS THAT WE NEED TO ASK.
I'M NOT GOING TO PUT THIS IN MY RESPONSIBILITY.
I'M NOT GOING TO BLAME THEM ON ANYONE BUT MYSELF.
BUT IF SUPERINTENDENT SAYS WE GOT TO DO THIS, WE NEED TO, THEY WOULD PROBABLY DO IT.
>> IT'S NOT A BLAME, IT'S AN OBSERVATION.
> IT'S AN OBSERVATION THAT SHOULD BE ADDRESSED.
EVEN WHEN YOU LOOK AT THE OBSERVATION ON THE BOARD MEMBERS AND EXTERNAL ADVISORS THAT RESPONDED, THAT'S AN OBSERVATION, BUT THAT'S A LOW RETURN.
WHEN YOU WORK FOR L9 BOARD MEMBERS, YOU DON'T JUST WORK FOR THIS COMMITTEE.
SO I WOULD JUST STRONGLY SUGGEST, IS THAT WHEN YOU SEND THIS OUT, THAT YOU REACH OUT TO THE BOARD MEMBERS AND REMIND THEM THAT IT'S THERE AND YOU WOULD LIKE THEIR PARTICIPATION.
YES, I WANTED TO JOIN TRUSTEE MARSHALL, THANK THE AUDIT COMMITTEE AS A WHOLE.
THANK YOU FOR I THINK THIS REALLY GREAT ACCOMPLISHMENT HERE THAT WE'VE GOT SEEING THE POINT ABOUT THE RELATIONSHIPS WITH TRUSTEES.
I THINK I'D SOMETHING THAT I'VE REALLY APPRECIATED OVER THE LAST YEAR IS BEING ABLE TO SIT DOWN AND UNDERSTAND THOROUGHLY WHAT IS GOING ON IN THIS DEPARTMENT.
I THINK YOU DID A REALLY GREAT JOB ALONG WITH OTHER PEOPLE HERE IN THE TEAM THAT I SAW EARLIER TODAY THAT TOOK THE TIME, I THINK IT WAS FRANKLY ABOUT 90 MINUTES MAYBE AND THAT HAPPEN TWICE, NOT JUST ONCE THAT YOU GAVE ME THE TIME TO WALK THROUGH SOME OF THESE THINGS.
I THINK THAT IS EXACTLY WHAT LED INTO HIGHER STAKEHOLDER FEEDBACK, AT LEAST IN MY REGARD TO THE WORK THAT YOU'RE DOING AND FOR INFORMING ME REALLY KIND OF TAKING ME STEP-BY-STEP THROUGH WHERE WE WERE AND WHERE WE ARE AND WHERE WE WANT TO BE.
I THINK THAT, THAT KIND OF CONTINUOUS WORK WOULD KEEP THAT ENGAGEMENT IN THAT FEEDBACK ON MY END, WHERE IT WAS AND SO IT'S REALLY, REALLY APPRECIATE IT.
THANK YOU, TRUSTEE. WE ONLY DO THIS EVERY FIVE YEARS.
I WAS HESITANT TO MAKE PHONE CALLS, PROBABLY COULD HAVE DONE THAT, I [LAUGHTER] DIDN'T WANT TO COERCE ANYBODY, BUT THE FEEDBACK WAS IMPORTANT AND WE TRIED TO GET THE WORD OUT.
I PERSONALLY SENT REMINDERS TO THE BOARD AND SPOKE ABOUT IT AT A BOARD MEETING TO REMIND
[01:25:02]
EVERYBODY THAT YOU CAN ONLY LEAD A HORSE TO WATER, RIGHT? YES SIR.WE MADE IT VERY ABUNDANTLY EASY AND CLEAR THAT TRUSTEES SHOULD RESPOND TO THIS AND YOU GET WHAT YOU GET.
ANY OTHER COMMENTS OR QUESTIONS? YES. MS. STEVENS.
I'VE BEEN THROUGH THESE MYSELF EVERY THREE YEARS FOR THE PAST 29 YEARS THAT I'VE BEEN WORKING IN AUDIT.
I GET THE SAME RESPONSE RATES, SO [LAUGHTER] IT'S VERY HARD THAT THE HIGHER THE LEVEL AND THE SURVEY TOOL IS COMPLICATED AND SO IT'S NOT JUST AN EASY THING TO DO, SO I CAN UNDERSTAND THE LOW RESPONSE RATE.
THE ONLY COMMENT I HAD WAS ON THE RESPONSES TO THE CONTINUOUS IMPROVEMENT, WHICH I THINK THEY'RE GREAT COMMENTS AND I THINK I KNOW YOU ALL HAVE IMPLEMENTED SOME OF THEM.
IT WOULD BE NICE, FIRST OF ALL TO HAVE WHEN YOU DO THE FOLLOW UP AT EACH MEETING, TO HAVE THE STATUS OF IMPLEMENTATION OF THESE QARS WHICH I ASSUME YOU'RE GOING TO DO, BUT THAT WOULD BE NICE.
THEN SOME OF THEM I MEAN, THE REPORT STATED OCTOBER AND THEN SOME OF THE RESPONSES SAY THEY'VE BEEN IMPLEMENTED ON OCTOBER 31ST.
IS THAT VALID REALLY? SOME OF THEM, WE AGREE WE'LL CONTINUE RELATIONSHIPS.
IT MIGHT BE NICE TO HAVE MAYBE WHEN YOU DO YOUR NEXT FOLLOW UP SAYING EXACTLY WHAT YOU DID AND WHAT YOU'RE CONTINUING TO DO, ESPECIALLY ON ONES THAT SAY, CONTINUE BUILDING RELATIONSHIPS AND PROMOTING A BETTER UNDERSTANDING OF SERVICES.
THAT SAYS IT WAS IMPLEMENTED BY OCTOBER 31ST.
I THINK THAT'S SOMETHING THAT YOU'RE GOING TO KEEP EVOLVING, ESPECIALLY GIVEN SOME OF THE- THAT'S A FAIR QUESTION.
I FEEL LIKE WE CONTINUE AND WE'D BEEN WORKING ON THAT FOR A LONG TIME.
CAN I SAY WHERE WE WANT TO BE? NO. BUT THE COMMITMENT IS THERE TO CONTINUE DOING IT.
THAT WAS MY PHILOSOPHY ON ANSWERING THAT AND THE SECOND ONE ON BUILDING IT SKILLS WELL, WE CHECKED POLICY, WE'RE GOING TO REQUIRE AT LEAST EIGHT HOURS TO 16 HOURS OF IT TRAINING EVERY YEAR FOR EVERY AUDITOR.
NORMALLY, YOU WOULDN'T DO THAT AND IF YOU'RE IN GOVERNMENTAL AUDITING, YOU'D HAVE TO HAVE YELLOW BOOK, TRAINING.
WE'RE GOING TO REQUIRE IT AND SO EFFECTIVELY WE'VE CHANGED THE PLAN, HAVE WE GOT IT ALL DONE YET? OF COURSE NOT, BUT WE'RE WORKING ON IT THIS YEAR AND WE'LL HAVE THAT ON AN ONGOING BASIS TO HELP BUILD THOSE IT SKILLS.
THAT'S WHY I ANSWERED THOSE THAT WAY.
THE PLAN IS PUT IN PLACE TO DO IT.
YOU'LL JUST KEEP MONITORING IT, THAT'S THE ONLY THING ABSOLUTELY. WE DO AN INTERNAL QA EVERY YEAR, SO THAT WOULD PROBABLY BE THE APPROPRIATE TIME TO SHOW THEN, YES, 12 OUT OF 16 ALREADY HAVE THEIR IT AUDIT COMPLETED FOR THE YEAR THEY HAVE UNTIL JULY 31 OR IF IT'S AFTER THAT DATE, EVERYBODY'S DONE IT, BECAUSE THAT'S THE PLAN AND WE'RE BE THE REQUIREMENT GOING FORWARD, SO I'D PROBABLY INCLUDE ALL THOSE FOLLOW UP ISSUES [NOISE] IN THAT INTERNAL QA.
WE START THAT APRIL, MAY TIME PERIOD.
MOVING ON TO ITEM 5.9, REPORT ON STATUS OF AUDIT PLAN AND SUFFICIENCY OF DEPARTMENT RESOURCES.
WE PRESENTED THE ART-LINE STATUS IN THE PACKET.
I FEEL LIKE WE'RE ON TRACK FOR THIS POINT IN THE YEAR.
WE STILL GOT A LOT OF WORK TO DO.
AS YOU CAN SEE BY SOME OF THE AUDITS, THERE'S NO EASY AUDITS AND ONCE YOU DO ONE, YOU FIND OUT OTHER THINGS THAT YOU GET TO GO BACK DO NEXT YEAR, BUT SUFFICIENCY OF RESOURCES, WE FILL TWO POSITIONS, IT OPENINGS WE FILLED TWO POSITIONS.
I HAVE ONE OPENING WE'RE POSTING THAT JOB FOR SENIOR PERSON AND WE SPECIFICALLY ARE WRITING IN THE JOB POSTING, IT SKILLS REQUIRED.
I'VE GOT TO HAVE SOMEONE THAT'S NOT NECESSARILY 100 PERCENT IT AUDITOR, BUT WHAT WE'LL CALL INTEGRATED AUDITOR A LITTLE BIT OF EVERYTHING.
THEY NEED SOME INVESTIGATION EXPERIENCE, SOME IT AUDIT EXPERIENCE, AND GENERAL FINANCIAL AND OPERATIONAL AUDIT EXPERIENCE, SO WE'LL BE LOOKING FOR A SEASONED PERSON TO RECRUIT IN THAT ROLE.
JUST TAKE A QUICK LOOK AT THE SECOND PAGE, [BACKGROUND] NUMBER 24 AND 27.
IF YOU'RE GOOD, JUST GIVING ME A QUICK SCOPE OF THOSE TWO PROJECTS, SECURITY AND MAJOR PROGRAMS. I DON'T HAVE THOSE PICTURES.
[01:30:03]
ARE YOU MISSING THE SECOND PAGE? I'M MISSING THE SECOND PAGE, I WAS LIKE, WHAT ARE YOU TALKING ABOUT? [LAUGHTER] [BACKGROUND] WELL, THAT'S NOT GOOD. [LAUGHTER].TWENTY FOUR, THAT WAS CAMPUS SECURITY THAT WE HAD DONE A LITTLE BIT MORE LAST YEAR.
VISITED A NUMBER OF CAMPUSES TRYING TO FIGURE OUT WHAT THE MOST EFFICIENT WAY TO DO THAT GOING FORWARD, WE'D COMBINE THEM WITH SOME ACTIVITY FUND AUDITS, THINGS LIKE THAT.
TWENTY SEVEN, MAJOR PROGRAMS. IT'S RIGHT BELOW IT.
YEAH, I SEE THAT. THEY WEREN'T THE IT.
WAS THAT IT PROGRAMS? FEDERAL PROGRAMS. OH, I'M SORRY. FEDERAL PROGRAMS, MAJOR FEDERAL PROGRAMS. FOR US AND WE FOR SCHOOL NUTRITION AND ANOTHER FUNDING.
I CAN GET YOU A LITTLE BIT BETTER ANSWER. SORRY.
NO, THIS MAKES SENSE. THIS IS AS MUCH AS I NEED TO KNOW FOR THIS. THANK YOU.
JUST WANTED QUICK COMMENT. JUST THIS CHART USED TO HAVE FTES ON THE BOTTOM OF IT, CAN YOU PUT THAT BACK.
THAT WAS HELPFUL AND IT'S MISSING ON THIS ONE.
I'M GOING TO ADD THE WHOLE CHART TO THE BACK OF IT TO.
THAT WOULD BE HELPFUL AS WELL, YEAH.
GREAT. ON TO ITEM 5.10 REPORT ON THE DISTRICT HOTLINE.
WE'VE GOT THE HOTLINE NUMBERS IN HERE.
IF YOU LOOK AT THE THIRD PAGE I'M SORRY, THE SECOND PAGE, I ACTUALLY GOT THE MATH TO BALANCE.
[LAUGHTER] THAT'S GOOD. PROGRESS.
WHAT HAD HAPPENED IS, THAT ITEMS GO TO POLICE AND TITLE 9 FOR CERTAIN REVIEW IF THERE'S CRIMINAL ACTION OR WHAT HAVE YOU, THOSE ARE RETURNED AND THEY WERE PHYSICALLY CLOSED OUT IN PSO, SO I SHOW A TRANSFER NEGATIVE AND A TRANSFER IN, OBVIOUSLY THAT BALANCED TO ZERO, BUT OUR ENDING BALANCE LAST TIME WAS 44 ITEMS AND WE ASSIGN 368 WE CLOSE 319, THAT LEAVES US WITH 93 ITEMS. THERE IS AN AGING REPORT INCLUDED OF THOSE 93 AND THEN THE FIRST PAGE, OF COURSE SHOWS YOU FIRST QUARTER, SECOND QUARTER SHOWS YOU THE 368 WHICH WERE ADDED IN BY CATEGORY TYPE.
ANY QUESTION? TRUSTEE FOREMAN.
JUST A QUICK COMMENT IF YOU CAN DO IT OR NOT? BUT IT'D BE REALLY GOOD TO COMPARE THE TIME FRAME FOR 2019-2020 BECAUSE 2020-2021 IS PRETTY MUCH A WASH.
BUT TO COMPARE THE TIME FRAME IN TERMS OF THE HOTLINE REPORTING SO THAT I CAN GET A VISUAL LOG IF THEY'RE GOING UP OR DOWN OR STAYING THE SAME.
I COULD DO A YEAR OVER YEAR THIS ONE.
THEY'VE INCREASED DRAMATICALLY IN THE LAST THREE TO SIX MONTHS.
WE'RE TRENDING TO 16-1,800 FOR THIS YEAR.
I'M A PAPER PERSON AND I HAVE TO SEE IT.
GREAT. OUR LAST ITEM, 5.11 REPORT ON THE STATUS OF AUDIT FOLLOW-UP.
WE REVIEWED 10 ITEMS THAT WE DUE FOR FOLLOW-UP.
I BELIEVE MY INVENTORY NUMBER NOT DUE YET.
WHAT WILL BE COMING DAYS 18, WE'LL BE ADDING A FEW OF THEM FROM THESE AUDITS YOU JUST FINALIZED, BUT VERY MANAGEABLE NUMBER.
ALL GREEN AND IT ALSO HAS CLOSE.
ANY QUESTIONS OR COMMENTS? MS. STEVENS I'M SORRY TO ALWAYS BOTHER YOU WITH THIS FOLLOW-UP QUESTIONS. [LAUGHTER].
THE FOLLOW-UP FOLLOW-UP QUESTIONS.
WHEN I LOOK AT THIS, I SEE IT LOOKS TO ME LIKE THERE'S NO AUDIT RECOMMENDATIONS WITHIN THE DISTRICT THAT NEED TO BE IMPLEMENTED.
I THINK IT WOULD BE HELPFUL TO HAVE SOME KIND OF ALMOST LIKE YOUR FOLLOW YOUR HOTLINE REPORT, SOME KIND OF, HERE'S HOW MANY WE HAVE OUTSTANDING FOR THE DISTRICT.
HERE'S HOW MANY WERE CLOSE THIS THIS TIME.
HERE'S THE BALANCE OF THEM DUE AND THEN EVEN POSSIBLY AN AGING OF, HOW LONG IS IT TAKING THEM TO GET THESE AUDIT RECOMMENDATIONS IMPLEMENTED? IS IT ON TRACK? [OVERLAPPING] THAT'S WHY I MENTIONED. WE ARE 18 OPEN RIGHT NOW, NOT DUE BASED ON AGREED UPON IMPLEMENTATION DAY, WE WATCH THAT, I DON'T GIVE THEM AN INDEFINITE AMOUNT OF TIME, IT HAS TO BE REASONABLE.
COULD BE UP TO A YEAR, BUT NORMALLY THEY'RE SIX MONTH RANGE, THREE TO SIX MONTH RANGE, I'D SAY AVERAGE.
I LIKE THAT SUGGESTION QUITE A BIT.
TONY, IF YOU'VE GOT A TEMPLATE YOU GUYS USE INTERNALLY THAT YOU CAN FOLLOW WITH HIM OFFLINE, I THINK THAT'LL BE HELPFUL.
TRUSTEE FOREMAN AND I AGREE ON IT TO WHICH IF THAT HAPPENS, [OVERLAPPING] [LAUGHTER]
[01:35:03]
THAT'S NOT GOOD NEWS.WE'LL GET IT DONE. WE'LL ADD IT IN. [LAUGHTER] ON THAT NOTE, THE TIME IS 6:05 AND THIS MEETING IS ADJOURNED.
[LAUGHTER]
* This transcript was compiled from uncorrected Closed Captioning.