[1. Notice and Return]
[00:00:04]
WE HAVE A QUORUM AND THE MEETING HAS BEEN DULY POSTED.
GOOD AFTERNOON AND WELCOME TO THE AUDIT COMMITTEE MEETING OF THE DALLAS INDEPENDENT SCHOOL DISTRICT BOARD OF TRUSTEES.
[2. Moment of Silence and Pledge of Allegiance]
PLEASE STAND AND JOIN US FOR A MOMENT OF SILENCE AND REMAIN STANDING FOR THE PLEDGE OF ALLEGIANCE AND A SOLUTE TO THE TEXAS FLAG.[3. Acknowledgements]
WITH ME IS TRUSTEE CARRYON AND TRUSTEE FLORES AND I'M TRUSTEE FORMAN.ARE THERE ANY ELECTED OFFICIALS IN THE AUDIENCE THAT I DID NOT RECOGNIZE? [NOISE] ALSO IN ATTENDANCE IS OUR NON-VOTING COMMITTEE MEMBER, CHRIS LEWIS, OUR SUPERINTENDENT OF SCHOOLS, DR. STEPHANIE.
ALICE, JOINS US BUT VIA VIDEO CONFERENCE ALONG WITH DEPUTY SUPERINTENDENT, DUAN THOMPSON, WHO IS HERE IN PERSON WITH US.
IN ORDER FOR THE BOARD TO HOLD THIS MEETING IN AN EFFECTIVE MANNER, 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 OUTLINED ON 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 ORDINARY CONDUCT OF A MEETING BY PHYSICAL ACTION OR VERBAL UTTERANCE, AND THEREBY CURTAIL THE EXERCISE OF OTHERS FIRST AMENDMENT RIGHTS.
ARE THERE ANY PUBLIC SPEAKERS?
>> THERE ARE NO PUBLIC SPEAKERS.
WE WILL GO ON TO THE AGENDA ITEMS. THE FIRST ITEM IS
[5. Action Items/Reports]
AGENDA ITEM 5.1, CONSIDERING TAKE POSSIBLE ACTION TO APPOINT NON-VOTING COMMITTEE ADVISORS TO THE AUDIT COMMITTEE MEETING.DO I HAVE A MOTION TO APPROVE APPOINTMENT OF NON-VOTING COMMUNITY ADVISOR MONICA FRASIER TO THE AUDIT COMMITTEE?
>> IT'S BEEN MOVED AND SECONDED THAT NON-VOTING COMMUNITY MEMBER MONICA FRASIER, BE APPOINTED TO THE AUDIT COMMITTEE.
ALL THOSE IN FAVOR? ALL THOSE OPPOSE?
>> NEXT ITEM IS AGENDA ITEM 5.2, CONSIDER AND TAKE POSSIBLE ACTION TO APPROVE THE MINUTES OF THE SEPTEMBER 26TH, 2022 MEETING.
WE'RE NOW ON THE APPROVAL OF THE MINUTES OF THE MEETING.
DO I HAVE A MOTION TO APPROVE THE MINUTES OF THE SEPTEMBER 26TH, 2022 MEETING?
>> IT HAS BEEN MOVED BY TRUSTEE FLORES AND SECONDED BY TRUSTEE CARRYON THAT WE ADOPT THE MINUTES OF SEPTEMBER 26, 2022, MEETING.
ALL THOSE IN FAVOR? ARE THERE ANY CORRECTIONS? ALL THOSE IN FAVOR, PLEASE CAST YOUR VOTE.
THE MOTION APPROVING THE MINUTES OF THE SEPTEMBER 26TH, 2022 MEETING.
NEXT WE'LL HAVE 5.3 REPORT ON DISTRICT FINANCIAL UPDATE.
[00:05:01]
MS. TAMIKA ALFRED STEVENS, FINANCIAL SERVICES.>> GOOD AFTERNOON TRUSTEE FORMAN, TRUSTEE CARRYON AND TRUSTEE FLORES AND ALL OTHER MEMBERS, AND ALL OF THE INDIVIDUALS IN ATTENDANCE.
ARE THERE ANY QUESTIONS ABOUT THE DISTRICT FINANCIAL UPDATE? THIS IS THE NOVEMBER BUDGET AMENDMENT FOR THIS MONTH.
WOULD BE HAPPY TO ANSWER ANY QUESTIONS THAT YOU MAY HAVE REGARDING IT.
>> TRUSTEES, ARE THERE ANY QUESTIONS?
>> I HAVE ONE QUICK QUESTION BECAUSE I HADN'T SEEN IN UNTIL RIGHT NOW BECAUSE I'M AN IDIOT.
THIS DAMAGE TO COME FIELD, WHAT WAS THAT?
>> YES. WE ALLOWED THE CITY TO UTILIZE THAT AS A TEMPORARY SPACE AND THE AGREEMENT WAS THROUGH FEMA THAT IF ANY DAMAGE OCCURRED, THAT WE WOULD DOCUMENT THAT AND GET REIMBURSED AND THAT'S WHAT WE'RE DONE.
NOW WE'LL BE ABLE TO DO THE REPAIRS.
>> ARE THERE ANY ADDITIONAL QUESTIONS? THANK YOU, MS. STEVENS.
NEXT, WE WILL MOVE ON TO ITEM NUMBER 5.4, REPORT ON FISCAL YEAR 2021/2022, E-RATE PROGRAM AUDIT.
I'M A PARTNER WITH WHITLEY PENN AND I'M HERE WITH EILEEN TO PRESENT THE RESULTS OF THE E-RATE AUDIT.
EACH YEAR YOU CHOOSE TO HAVE THIS CONDUCTED BASED ON THE HISTORY WITH E-RATE AND IT'S NOT REQUIRED, BUT IT DOES GIVE YOU AN EXTRA LEVEL OF ASSURANCE THAT THE RIGHT THINGS ARE BEING DONE WITHIN THIS PROGRAM.
THIS AUDIT REPORT COVERS THE FISCAL YEAR 2022.
AS PART OF OUR PLANNING PROCESS, WE LOOK BACK AND SEE WHAT HAPPENED LAST YEAR.
WE LOOK AT THE CAMPUSES THAT WERE SELECTED, THE CORRECTIVE ACTIONS THAT WERE RECOMMENDED, AND WHETHER OR NOT THOSE WERE IMPLEMENTED.
THEN WE BASE OUR SAMPLE ON THOSE PROCEDURES AND WE MEET WITH THE NUMBER OF INDIVIDUALS TO SEE IF THERE'S ANY OTHER HIGH-RISK AREAS OR ANY CAMPUSES THAT WE SHOULD DEVOTE EXTRA ATTENTION TO.
WHAT WE DID WAS WE DID A SAMPLE OF ABOUT 40 EMPLOYEES REGARDING THEIR TRAINING.
THEN ON THE ASSET SIDE, WE PICKED 150 ASSETS ACROSS 10 DIFFERENT CAMPUSES AND WE CHECKED THOSE FOR THE COMPLIANCE REQUIREMENTS WITH E-RATE.
WE NOTED SOME DEFICIENCIES HERE AND I'LL WILL PASS IT TO EILEEN TO LET HER GO THROUGH THOSE.
>> GOOD AFTERNOON BOARD OF TRUSTEES.
MY NAME EILEEN [INAUDIBLE] L AM ALSO INVOLVED WITH E-RATE AUDIT.
AS PER THE TWO BIGGEST CONCERNS OR AREAS THAT WE FIND SOME ISSUES AND DISCUSSED WITH MANAGEMENT ARE RELATED TO; THE FIRST ONE IS RELATED TO EDUCATION AND TRAINING.
WE REVIEWED THE DISTRICT'S E-RATE POLICIES AND PROCEDURES AND IT'S A REQUIREMENT THAT E-RATE EMPLOYEES SHOULD HAVE ANIMAL TRAINING AND CERTIFICATIONS WITH THE FUNDING YOUR FISCAL YEAR.
WE SAW AN IMPROVEMENT FROM LAST YEAR BECAUSE OUT OF 40 SAMPLES, WE NOTED ONE EXCEPTION.
THE EXCEPTION IS THAT THAT EMPLOYEE COMPLETED THE TRAINING WITHIN THE FISCAL YEAR.
HOWEVER, THE CERTIFICATIONS WHERE SIGN-IN COMPLETED AFTER THE FISCAL YEAR.
CERTIFICATIONS WAS DONE, HOWEVER, IT'S NOT WITHIN THE FISCAL YEAR.
WHAT WE DID IS WE WENT BACK TO THE WHOLE LIST OF DALLAS E-RATE EMPLOYEES AND WE NOTED THREE ADDITIONAL OBSERVATIONS.
NAMELY THE FIRST ONE IS TWO EXISTING EMPLOYEES COMPLETED THE ANNUAL TRAINING BUT THE CERTIFICATIONS, AGAIN, WERE COMPLETED AFTER FISCAL YEAR.
THEN THE OTHER ONE IS THAT ONE NEW EMPLOYEE COMPLETED THE NEW EMPLOYEE TRAINING WITHIN THE FISCAL YEAR AND THE SAME THING, THE OTHER CERTIFICATIONS, SUCH AS THE E-RATE ATTESTATION, CONFLICT OF INTERESTS DISCLOSURE, GIFTING DISCLOSURE AFFIDAVIT, OFFICIAL REGISTRATION IN BOTH CERTIFICATIONS AFFIDAVIT WERE COMPLETED AFTER THE FISCAL YEAR.
WE MADE SOME RECOMMENDATIONS TO MAKE SURE THAT THE DISTRICT PERFORMANCE REVIEWS OF THE E-RATE ELIGIBILITY EMPLOYEES AND TO IDENTIFY OFFICERS FOR MEMBERS EMPLOYEES WHO HAVE NOT COMPLETED ANNUAL TRAINING.
WE SAW AN IMPROVEMENT BECAUSE THE STAFF WAS ABLE TO COORDINATE WITH THE CORNERSTONE AS FAR AS IMPROVING IT.
[00:10:05]
WE SAW A REJECTION RATE OF ONLY ONE PERCENT ERROR OUT OF 467 EMPLOYEES THAT WERE TESTED.THIS TIME THEY WILL BE DOING SOME IMPROVEMENTS SUCH AS ONGOING BIWEEKLY REMINDERS TO EMPLOYEES THAT WILL BE SCHEDULED AND THE SUBSEQUENT ESCALATION EMAILS WILL BE SENT TO SUPERVISORS.
BUT THEY FOLLOWED OUR RECOMMENDATIONS FROM LAST YEAR, WHICH IS TO MAKE SURE THAT THEY DID THE TRAINING CERTIFICATIONS OR THOSE COMPLETION OF CERTIFICATIONS IN A TIMELY MANNER WHICH IS EARLIER THAN THE PREVIOUS WAY THAT THEY DID THINGS.
THE OTHER AREAS OF CONCERNS THAT WE NOTED IS RELATED WITH ASSETS.
THAT'S THE BIGGEST PART OF OUR TESTING.
WHAT PATRICK MENTIONED A WHILE AGO, WE VISITED 10 CAMPUSES AND FOR EACH 10 CAMPUS, WE SELECTED 15 E-RATE ASSETS FOR TESTING.
WE WANT TO MAKE SURE THAT THOSE ASSETS WERE ACTUALLY LOCATED ON EACH LOCATION.
DURING OUR PHYSICAL INSPECTION OF E-RATE ASSETS AND REVIEW OF SUPPORTING DOCUMENTATION SUCH AS PURCHASE ORDERS AND INVOICES.
ON PAGE NUMBER 11, OF THE DALLAS E-RATE ASSET REPORT, WE NOTED SOME INSTANCES OF FINDINGS.
WE KNOW THAT 43 DEVICES WERE LOCATED IN THE CAMPUS.
HOWEVER, THE ROOM NUMBER IS INACCURATE AND DID NOT AGREE WITH THE DEEP WEB ASSETS OR HAZE DATABASE.
WE ALSO NOTED 38 OBSERVATIONS OR FINDINGS ON WHICH THERE IS AN INCORRECT FUNDING REQUEST NUMBER OR FRN IN THE DEEP WEB ID HAZE DATABASE.
HOWEVER, AS SOON AS WE ADDRESSED THE ISSUES TO THAT, THEY CORRECTED IT RIGHT AWAY AND PROVIDED US SOME SUPPORTING DOCUMENTATION FROM THEIR DATABASE.
WE KNOW THAT FOR PRODUCT DESCRIPTION AND PURCHASE PRICE THAT DID NOT AGREE WITH THE INVENTORY SHEET, AND THIS IS BASED ON THE REVIEW OF THE PURCHASE ORDERS AND INVOICES.
WE ALSO KNOW THAT THREE INCORRECT PURCHASE PRICE IN THE DEEP WEB ID HAZE DATABASE AND IT WAS CORRECTED AFTER THE FACT.
WE NOTED TOO, THAT HAS A DIFFERENT ROOM DESCRIPTION AND THE DATABASE IT WAS RECEIVING STATUS AND IT'S NOT UPDATED TO ITS ACTUAL LOCATION.
WE KNOW THE THREE PURCHASE ORDER NUMBERS THAT DID NOT AGREE WITH THE ACTUAL PURCHASE ORDER.
THEN LASTLY, FOUR DEVICES THAT WERE INCLUDED IN THE AVERAGE DEVICE THAT'S NOT INSTALLED BUT HAS IN-USE STATUS.
MEANING IT HAS ACTIVE STATUS ON THE DATABASE.
WE MADE RECOMMENDATIONS TO THE DISTRICT TO PERFORM PERIODIC INVENTORY COUNTS TO IDENTIFY ANY DISCREPANCIES WITH THE FRN AND WE MET WITH MANAGEMENT VIRTUALLY TO DISCUSS THESE ISSUES.
THEY AGREE WITH THE RECOMMENDATION AND THEY WILL BE IMPROVING THE COORDINATION AS FAR AS CORRECTING THE FRN AND ANY OTHER AREAS THAT WE NOTED HERE.
THAT'S ALL THAT I HAVE FOR THE OBSERVATIONS.
>> TO PUT THESE INTO PERSPECTIVE JUST A LITTLE BIT AS COMPARED TO LAST YEAR IF THERE WAS SOME IMPROVEMENT REALLY ACROSS THE BOARD.
IF YOU JUST LOOK AT THE NUMBERS SO THERE ARE 43 INSTANCES AT THE TOP.
WE LOOKED AT THIS A DIFFERENT WAY FROM LAST YEAR, SO THIS IS A NEW ONE, BUT IT'S ON THE NEXT ONE, THE 38.
LAST YEAR WE HAD 64, SO IT'S DOWN TO ABOUT 25 PERCENT ERROR RATE THIS YEAR, WHICH IS IMPROVEMENT AS LAST YEAR IT WAS ALMOST HALF.
THEN THE OTHER LARGE ONE FROM LAST YEAR IS THE INCORRECT PURCHASE PRICE.
THERE WAS 26 LAST YEAR AND THERE'S ONLY THREE THIS YEAR, SO THAT'S A VERY SIGNIFICANT IMPROVEMENT.
WE'D BE HAPPY TO TAKE ANY QUESTIONS RELATED TO THIS AS WELL.
>> TRUSTEES, ARE THERE ANY QUESTIONS? TRUSTEE FLORES.
>> I WAS JUST GOING TO SAY THAT ALTHOUGH I GUESS WE'RE NOT REQUIRED TO DO THIS E-RATE AUDIT, I THINK IT'S VERY IMPORTANT.
I WAS AROUND WHEN WE WERE IN E-RATE JAIL, AND SO I THOUGHT THAT IT WAS IMPORTANT THAT WE CONTINUE TO DO THIS WORK IN TESTING VERSUS WHY WE GOT INTO E-RATE JAIL, WHICH WAS HUNDREDS OF THOUSANDS OF DOLLARS AND WHATNOT.
THE STUFF WAS IN THE WRONG ROOM, CAMPUSES CHANGED ROOM NUMBERS AND SOMEBODY DIDN'T GO BACK.
THIS IS MOVING CHAIRS AROUND, SO I'M PRETTY GLAD THAT THIS IS THE EXTENT OF IT.
IT SOUNDS LIKE THE ADMINISTRATION FIXES IT WHEN IT'S BROUGHT TO THEIR ATTENTION SO I APPRECIATE YOUR WORK ON THIS VERY MUCH. THANK YOU.
>> YES, YOU'RE WELCOME. WE'D LIKE TO SEE THE IMPROVEMENT EACH AND EVERY YEAR AS WELL.
WE LIKE SEEING THE DISTRICT IMPROVE AND IN TURN SAVE THE DISTRICT MONEY, SAVE THE PUBLIC MONEY, AND MOVE FORWARD.
>> I WILL ALSO LIKE TO TAKE THE TEAM WHO HELPED US WITH THESE E-RATE AUDITS SINCE WE STARTED THIS IN OCTOBER AND THEY'RE VERY HELPFUL
[00:15:02]
TO US AND THEY'RE RESPONSIVE TO OUR RECOMMENDATIONS.I JUST WANT TO ADDRESS THAT TO YOUR ATTENTION THAT THEY'RE VERY COOPERATIVE AT US.
I HAPPEN TO BE AROUND WHEN WE WERE IN E-RATE JAIL ALSO, BUT I STILL HAVE SOME CONCERNS IN TERMS OF SOME OF THE THINGS THAT YOU STILL IDENTIFY THAT COULD GET US IN SOME ADDITIONAL PROBLEMS. LAST YEAR, HOW MANY SCHOOLS DID YOU ACTUALLY TEST?
>> WE TESTED 10 SCHOOLS LAST YEAR BUT DIFFERENT CAMPUSES.
>> IT'S 10 LAST YEAR AND 10 THIS YEAR?
>> WE HAVE ALMOST 300 CAMPUSES.
>> TWO HUNDRED TWENTY THAT HAS E-RATE ASSETS.
>> TWO-TWENTY THAT HAS E-RATE ASSET THAT'S A LOT OF CAMPUSES THAT STILL HAVEN'T BEEN TESTED.
DID YOU IN YOUR RECOMMENDATIONS TO THE ADMINISTRATION SPEAK TO THE LARGE NUMBER OF CAMPUSES THAT HAD NOT BEEN TESTED AND ASK WHAT WOULD BE DONE WITH THOSE, TO LOOK AT THOSE PARTICULAR ASSETS? THAT'S THE BIGGEST ISSUE FOR ME IS, WE HAVE TONS OF ASSETS AND WE CONTINUE TO HAVE THESE LITTLE TRIPLES OF PROBLEMS WITH IDENTIFYING.
WE'VE HAD THIS CONVERSATION, SO IT'S NOT A NEW CONVERSATION WITH TECHNOLOGY.
BUT IN YOUR RECOMMENDATIONS, DID YOU RECOMMEND THAT THEY DO SOMETHING TO LOOK AT THOSE ADDITIONAL ASSETS WITH DIFFERENT SCHOOLS?
>> YEAH. BASICALLY, LAST YEAR I REMEMBER I ALWAYS ALSO INVOLVED WITH THE BIGGEST CAMPUSES.
EVEN THIS YEAR, EVEN THOUGH WE ARE USING RANDOM SAMPLING OF CAMPUSES, WE MADE SURE THAT THE BIGGEST CAMPUSES, HIGH SCHOOLS, MIDDLE SCHOOLS, ELEMENTARY, WERE ALSO PART OF OUR TESTING.
>> IT'S PART OF OUR RECOMMENDATION AS WELL.
IT'S NOT ISOLATED TO A CAMPUS.
IT'S AN OVERALL PROCESS THAT SHOULD BE CORRECTED.
I BELIEVE IT'S OUR THIRD OR FOURTH YEAR DOING THIS AND SO WE'VE ROTATED.
THAT MEANS WE'VE ONLY MADE IT THROUGH A QUARTER OF THE CAMPUSES MAYBE.
WE'RE COMFORTABLE WITH OUR APPROACH IN TERMS OF THE SAMPLING AND THAT IT'S REPRESENTATIVE OF THE POPULATION.
BECAUSE IF WE GO BACK EVEN FURTHER THAN JUST LAST YEAR, THERE WERE MORE DEFICIENCIES THEN AS WELL.
THE RANGE, EVEN LAST YEAR ON SOME OF THESE WAS ANYWHERE FROM 20 PERCENT TO ALMOST 50 PERCENT.
THERE'S CORRECTIONS ACROSS THE BOARD THAT NEEDS TO BE MONITORED AND KEPT TRACK OF.
>> THE LAST QUESTION IN REGARDS TO THE CERTIFICATIONS AND THE SIGNING OF THE CERTIFICATIONS AFTER THE YEAR FOR THE E-RATE CLASSES.
DID YOU MAKE RECOMMENDATIONS ON HOW TO FIX THAT? BECAUSE SOMEBODY IS SIGNING IT AFTERWARDS.
WHAT WERE THE RECOMMENDATIONS SO I CAN UNDERSTAND THEM.
>> ACCORDING TO THE RECOMMENDATION, OF COURSE, WE HAVE TO GET UNDERSTANDING OF WHAT WILL BE EFFICIENT OR EFFECTIVE FOR THE DISTRICT BECAUSE WE MAY HAVE RECOMMENDATIONS, BUT IT'S NOT POSSIBLE.
THE MAIN THING IS COORDINATION WITH THE CORRECTING OF THE CODING WITH CORNERSTONE EVEN BEYOND THE CONTROL OF THE DISTRICT BECAUSE CORNERSTONE IS CONTROLLING SOME OF THE CODING.
RIGHT NOW, THEY INDICATED IN HERE THAT THEY ARE ENGAGED IN DISCUSSIONS TO ADDRESS THE ISSUE BECAUSE IT HAS SOMETHING TO DO WITH SYSTEM CODING.
WHEN THEY DID THE INITIAL TESTING, IT LOOKS LIKE IT'S WORKING FOR 100 PERCENT OF EMPLOYEES THAT THEY TESTED.
BUT FOR SOME REASON, THIS FOR INSTANCE, HAS MORE ISOLATED INSTANCES AND THAT'S WHY THEY HAD TO CONTINUOUSLY COORDINATE WITH CORNERSTONE TO MAKE SURE THAT THE SYSTEM CODING WILL BE CORRECTED.
NOW THEY WILL HAVE TO DO THIS ONGOING BY WEEKLY REMINDERS AND INVOLVE THOSE SUPERVISORS IN A MORE DETAILED LEVEL.
>> IT'S MY UNDERSTANDING THAT THERE'S BASICALLY TWO SYSTEMS THAT ARE SUPPOSED TO TALK TO EACH OTHER 100 PERCENT, BUT THERE WAS MAYBE SOME GAPS SOMEWHERE IN THE CODING AND SO THEY'RE WORKING WITH SOFTWARE DEVELOPERS TO MAKE SURE THAT THEY ARE TIED TOGETHER.
BUT THEN AS AN EXTRA STEP, THEY HAVE THESE BY WEEKLY REMINDERS IN THIS TIME WHERE WELL MAYBE THE SOFTWARE ISN'T TALKING 100 PERCENT SO THEY HAVE AN EXTRA STEP TO CATCH THESE ISSUES.
THANK YOU VERY MUCH. THANK YOU.
>> IS THERE ANY FURTHER QUESTIONS? OKAY. THANK YOU.
[00:20:04]
WE'RE ON 5.5, CONSIDERING TAKE POSSIBLE ACTION TO REVIEW AND RECOMMEND TO THE FULL BOARD OF TRUSTEES APPROVAL OF THE ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR END JUNE 30, 2022.TO PRESENT OUR ANNUAL COMPREHENSIVE REVIEW, WE HAVE JENNIFER AND CLAIRE HERE WHO WILL WALK US THROUGH OUR FINANCIALS FOR FY22, FISCAL YEAR '22.
THANK YOU FOR HAVING US HERE TODAY SO THAT WE CAN PRESENT THE AUDIT RESULTS FOR FISCAL YEAR ENDED JUNE 30TH, 2022.
WE'LL START OFF WITH INTRODUCTIONS.
MY NAME IS JENNIFER RIPKA AND I'M THE PARTNER ON THE ENGAGEMENT.
I'VE BEEN WITH THE FIRM FOR 15 YEARS.
I'VE BEEN ON THIS ENGAGEMENT FOR SEVERAL YEARS.
I'M A MEMBER OF THE GFOA SPECIAL REVIEW COMMITTEE.
I'M EXPERIENCED IN WORKING ON AUDITS FOR GOVERNMENT ENTITIES IN GENERAL, AND THEN I ALSO LEAD OUR K THROUGH 12 EDUCATION PRACTICE.
I'LL LET CLAIRE INTRODUCE HERSELF.
>> MY NAME IS CLAIRE WOOTTON AND I'M A SENIOR MANAGER AT WEAVER.
MY EXPERIENCE IS VERY SIMILAR TO JENNIFER'S, JUST WITH A FEW YEARS LESS EXPERIENCE.
BUT AGAIN, I AM ON THE GFOA SPECIAL REVIEW COMMITTEE AND I AUDIT ALL OF OUR CITIES AND SCHOOL DISTRICTS AS WELL AS A FEW NOT-FOR-PROFITS.
>> THIS IS JUST A SLIDE ABOUT THE FIRM ITSELF, BUT I REALLY WANT TO TALK ABOUT TODAY WHY WE'RE HERE.
THE DISTRICT IS REQUIRED TO RECEIVE AN ANNUAL AUDIT OF THE FINANCIAL STATEMENTS BY AN INDEPENDENT PUBLIC ACCOUNTING FIRM.
YOU-ALL'S FIRM IS WEAVER AND TIDWELL.
WE DO HAVE TO ABIDE BY INDEPENDENCY OF RULES AS DEFINED BY THE AICPA CODE OF PROFESSIONAL CONDUCT, AS WELL AS GOVERNMENT AUDITING STANDARDS.
WE DO NOT REPORT TO MANAGEMENT, SO THAT'S WHY WE COME HERE TO PRESENT TO YOU-ALL, BECAUSE IT'S REQUIRED AS PART OF THE TEXAS EDUCATION CODE.
WE DO HAVE TO ISSUE WITHIN A 150 DAYS AFTER FISCAL YEAR-END, AND SO WE ARE GOING TO MEET THAT REQUIREMENT.
THE AUDIT TEAM, YOU-ALL HAVE A ALL-FEMALE LEADERSHIP TEAM WITH MYSELF AND CLAIRE AND SARA DEMPSEY WHO LEADS OUR GOVERNMENT PRACTICE, SHE'S THE QUALITY CONTROL PARTNER.
WE ALSO HAVE BRITTANY GEORGE, WHO IS THE PARTNER OVER THE IT ADVISORY SERVICES WORK THAT WE COMPLETE.
ELISA GILBERTSON IS OUR DATA ANALYTICS SENIOR MANAGER.
THEN WE HAVE BEN THOMPSON AS THE SUPERVISOR ON THE ENGAGEMENT AND GRAYSON AS OUR SENIOR ASSOCIATE.
ALL THE AUDIT ASSOCIATES ROLL UP UNDERNEATH THERE, BUT THEN WE ALSO UTILIZE FERNANDEZ AND COMPANY.
ROBERT'S TEAM, WE HAVE TWO INDIVIDUALS THAT WORK WITH US AS PART OF OUR CONTRACT WITH ROBERTS, AND SO THEY MAKE UP REALLY HALF OF THE AUDIT TEAM IN ADDITION TO THE SENIORS THAT WE HAVE ON THE ENGAGEMENT.
THEY PROBABLY BILL ANYWHERE FROM, PROBABLY ABOUT 45 PERCENT OF THE TIME THAT COMES THROUGH THIS ENGAGEMENT IS ROBERT'S TEAM.
THE AUDIT RESULTS. WE START WITH OUR INITIAL AUDIT PLANNING PROCESS.
WE MOVE ON TO INTERIM FIELDWORK, AND THAT'S REALLY THE MAY-JUNE TIMEFRAME.
WE COME BACK FOR FINAL FIELDWORK, SEPTEMBER AND OCTOBER, WHERE WE COMPLETE ALL THE SUBSTANTIVE TESTING.
I'M HERE TODAY TO PRESENT TO THE AUDIT COMMITTEE, WE'LL HAVE THE FINAL REPORT TO THE BOARD ON NOVEMBER 17TH.
THEN BETWEEN THAT FINAL REPORT AND WHEN WE DO THE INITIAL AUDIT PLANNING STAGE, WE DISCUSS DEVELOPMENTS AND PREPARE FOR NEXT SEASON.
PART OF THAT IS GETTING INFORMATION FROM THIS GROUP ON THINGS THAT YOU-ALL WOULD LIKE US TO INCORPORATE IN THE NEXT FISCAL YEAR'S AUDIT.
AT THE VERY END OF THIS PRESENTATION, WE'LL HAVE A QUESTIONS TIMEFRAME FOR ANYTHING THAT COMES UP DURING THE PRESENTATION ITSELF, BUT WE ALSO WANT TO GET ANY THOUGHTS ON THINGS THAT YOU-ALL WOULD LIKE US TO INCORPORATE GOING FORWARD.
AS FAR AS THE AUDIT RESULTS THEMSELVES, FINANCIAL STATEMENTS, WE'VE ISSUED AN UNMODIFIED OPINION ON THE FINANCIAL STATEMENTS.
[00:25:04]
THAT'S A CLEAN OPINION.IT'S THE HIGHEST LEVEL OF ASSURANCE THAT CAN BE PLACED ON THIS SET OF FINANCIAL STATEMENTS.
AS PART OF THE AUDIT, WE DO TAKE [NOISE] A RISK-BASED APPROACH, AND SO NOT EVERYTHING IS INCORPORATED DURING A FINANCIAL STATEMENT AUDIT.
WE ARE, IN A WAY, PARTNERING WITH THE DISTRICT TO DO THE EXTERNAL AUDIT, BUT YOU-ALL HAVE AN INTERNAL AUDIT TEAM THAT'S GOING TO DIVE DEEPER INTO AREAS OF CONCERN AS WELL.
ANY GRANULAR TYPE THINGS THAT WOULDN'T MEET MATERIALITY OR SOMETHING LIKE THAT, WE COULD INCORPORATE THOSE INTO THE AUDIT, BUT THAT IS ALSO THINGS THAT CAN BE INCORPORATED INTO THE INTERNAL AUDIT PLAN AS WELL.
AS PART OF OUR AUDIT, WE DO REVIEW INTERNAL CONTROLS OF OUR FINANCIAL REPORTING.
DURING OUR REVIEW, WE NOTED NO MATERIAL WEAKNESSES, NO SIGNIFICANT DEFICIENCIES THAT ARE NOT CONSIDERED MATERIAL WEAKNESSES, AND THEN WE NOTED NO NONCOMPLIANCE WITH REGARDS TO THE FINANCIAL STATEMENTS.
YOU ALWAYS WANT TO SEE NO, NONE REPORTED, AND NO THERE.
THAT DOESN'T MEAN THAT WE DON'T HAVE THINGS THAT DO ARISE WHERE WE DO DISCUSS ITEMS WITH MANAGEMENT.
THINGS THAT COULD BE IMPROVEMENTS, BUT NOT THINGS THAT WOULD RISE TO THE LEVEL THAT YOU-ALL WOULD HAVE TO BE NOTIFIED OF.
AUDIT RESULTS WITH REGARDS TO FEDERAL AWARDS.
THE DISTRICT DOES RECEIVE A SIGNIFICANT AMOUNT OF FEDERAL FINANCIAL ASSISTANCE.
WE DO WHAT'S CALLED A SINGLE AUDIT OVER FEDERAL FINANCIAL ASSISTANCE AND WE ISSUE AN OPINION OVER COMPLIANCE OVER MAJOR PROGRAMS. THAT WAS ALSO AN UNMODIFIED OPINION, SO A CLEAN OPINION.
AGAIN, THE HIGHEST LEVEL OF INSURANCE THAT CAN BE PLACED ON THAT COMPLIANCE REPORT.
YOU-ALL ARE A LOW-RISK ODDITY.
WE DO REVIEW INTERNAL CONTROLS OVER MAJOR PROGRAMS AND DURING THAT REVIEW, WE HAVE TO DETERMINE THE FEDERAL FINANCIAL ASSISTANCE PROGRAMS THAT WE'RE GOING TO TEST AS PART OF THE AUDIT.
THIS YEAR, THAT WAS ALL THE SR PROGRAM, SO SR 1, 2, AND 3 FOLLOW UNDERNEATH THAT TITLE 1, TITLE 2, AND TITLE 3, AS WELL AS THE EDUCATION CONNECTIVITY FUND.
DURING OUR REVIEW OF INTERNAL CONTROLS OVER THOSE MAJOR PROGRAMS, WE NOTED NO MATERIAL WEAKNESSES, NO SIGNIFICANT DEFICIENCIES, AND AGAIN, NO AUDIT FINDINGS THAT ARE REQUIRED TO BE REPORTED AS PART OF 2CFR.
WE DID IMPLEMENT GASB 87 THIS YEAR, AND SO THAT WAS THE ADOPTION OF A NEW STANDARD.
IN PRIOR AUDIT LANGUAGE, YOU-ALL MAY HAVE HAD WHAT WAS CALLED CAPITAL LEASES OR OPERATING LEASES.
THAT LANGUAGE IS NOW GONE AND THE DISTRICT CAN HAVE FINANCE PURCHASES OR LEASES WHERE THE DISTRICT IS THE LESSEE, SO YOU-ALL ARE LEASING ASSETS FROM SOMEONE ELSE OR LEASES WHERE THE DISTRICT IS THE LESSOR.
IN THE INSTANCE OF THE ADMIN BUILDING, IF YOU HAVE TENANTS THAT ARE COMING IN AND UTILIZING PART OF THE SPACE, THEN WE HAVE TO INCLUDE THAT ON THE FINANCIAL STATEMENTS AS WELL.
LESSEE IS YOU HAVE THE RECOGNITION OF LEASE LIABILITY AND A RIGHT TO USE ASSET AND THEN FOR THE LESSOR AGREEMENTS, A RECOGNITION OF THE LEASE RECEIVABLE AND A DEFERRED INFLOW.
FROM AN AUDIT STANDPOINT, WE HAD TO INCORPORATE THE ADOPTION OF SAS 134.
THAT CHANGED THE LAYOUT OF THE INDEPENDENT AUDITOR'S REPORT.
NOW, ON THE REPORT, THE OPINION IS PUSHED ALL THE WAY UP TO THE TOP.
YOU CAN READ IN THE FIRST PARAGRAPH THAT IT WAS A CLEAN OPINION ESSENTIALLY.
I'M GOING TO TURN IT OVER TO CLAIRE SO THAT SHE CAN GO THROUGH THE GENERAL FUND FINANCIAL HIGHLIGHTS AND THEN WE'LL FINISH OUT WITH ANY QUESTIONS THAT YOU-ALL MAY HAVE.
>> THIS NEXT SLIDE SHOWS IN A PIE GRAPH FORM YOUR FUND BALANCE OF YOUR GENERAL FUND IN FISCAL '22 COMPARED TO YOUR FISCAL '21, YOUR BRACKETS OF YOUR NON-SPENDABLE, SO THAT'S GOING TO BE PREPAIDS AND INVENTORY BALANCES, YOUR ASSIGNED FUND BALANCE, WHICH HAS BEEN ASSIGNED BY MANAGEMENT FOR SPECIFIC PURPOSES, AND THEN YOUR UNASSIGNED FUND BALANCE, WHICH THOSE FUNDS CAN BE SPENT ON REALLY ANY TYPE OF ITEMS THAT NEED TO BE OCCURRING.
ON THE NEXT SLIDE, I WANTED TO DISCUSS THE CHANGES IN FUND BALANCE THAT OCCURRED DURING FISCAL '22 THAT WERE SIGNIFICANT.
YOUR FUND BALANCE FOR THE GENERAL FUND TOTALED 974.6 MILLION, WHICH WAS AN INCREASE OF 51.3 MILLION, AND THAT WAS A RESULT OF YOUR REVENUES EXCEEDING YOUR EXPENDITURES BY 48 MILLION IN FISCAL '22.
[00:30:03]
THERE WAS ALSO THE ADDITION, HOW WE RECORD GASB 87 IN THE YEAR OF IMPLEMENTATION OR THE YEAR THOSE ASSETS WERE ADDED TO THE BOOKS, THERE WAS THE ADDITION OF THOSE ASSETS WHICH ARE CONSIDERED AN OTHER FINANCING SOURCE OF RIGHT TO USE LEASES AND FINANCE PURCHASES OF 14.2 MILLION.THERE WERE ALSO NET TRANSFERS OUT OF 7.5 MILLION AND THEN THERE WERE ALSO EXTRAORDINARY ITEMS THAT OCCURRED DURING FISCAL '22 OF 3.9 MILLION AS WELL.
THE UNASSIGNED FUND BALANCE, SO THAT'S THE FUNDS THAT YOU-ALL CAN USE FOR ANY ITEMS, IT'S NOT RESTRICTED IN ANY WAY, THAT DECREASED BY 2.4 MILLION TO 660 MILLION, AND THAT REPRESENTED APPROXIMATELY 40 PERCENT OF THE GENERAL FUND FISCAL '22 EXPENDITURES.
THEN YOUR ASSIGNED FUND BALANCE, AND THOSE ARE THOSE FUNDS SET ASIDE BY MANAGEMENT FOR SPECIFIC PURPOSES, THAT INCREASED BY 45.8 MILLION IN FISCAL '22 TO A TOTAL OF 292.5 MILLION.
THAT WAS PRIMARILY DUE TO OUTSTANDING ENCUMBRANCES AT JUNE 30TH.
THOSE ITEMS THAT HAD BEEN BUDGETED FOR IN FISCAL '22, DIDN'T GET SPENT IN '22, SO ARE BEING SET ASIDE FOR FISCAL '23, AS WELL AS SET ASIDES FOR THE FUNDING CONTINUATION OF PROGRAMS THAT ARE BEING SPENT FOR UNDER ESSER DOLLAR.
WHEN THE ESSER FUNDING IS OVER, THOSE PROGRAMS CAN STILL BE CONTINUED AFTER THAT FUNDING IS EXHAUSTED.
THEN THE FUTURE PAYMENTS OF QSCB BONDS, WHICH ARE QUALIFIED SCHOOL CONSTRUCTION BOND NOTES, AND ANTICIPATED FUTURE CAPITAL EXPENDITURES.
YOUR NEXT SLIDE IS JUST A LOOK AT YOUR BUDGET COMPARED TO ACTUAL FOR YOUR GENERAL FUND.
YOUR GENERAL FUND BUDGETED REVENUES EXCEEDED YOUR ACTUAL REVENUES BY 11.8 MILLION SO THAT MEANS YOUR ACTUAL REVENUE SCHEME AND JUST UNDER YOUR BUDGET, THAT WAS DUE TO YOUR TAX REVENUE IN YOUR STATE PROGRAM REVENUE THAT CAME IN JUST LESS THAN BUDGET.
YOUR GENERAL FUND BUDGETED EXPENDITURES EXCEEDED YOUR ACTUAL EXPENDITURES BY 194 MILLION AND THAT WAS DUE TO DIFFERENT POS AND OTHER PROJECTS THAT COULD NOT BE COMPLETED IN FISCAL 22 THAT HAD BEEN BUDGETED FOR.
AGAIN, THOSE TYPES OF ITEMS GOTTEN ASSIGNED FOR IN YOUR FUND BALANCE AND CARRIED OVER INTO FISCAL 23 AND THEN OVERALL, YOUR GENERAL FUND HAD A FAVORABLE BUDGET VARIANCE OF 194.9 MILLION AND THAT LEADS US TO ANY QUESTIONS THAT YOU ALL MAY HAVE FOR US.
>> THE SLIDE DECK DOES HAVE AN APPENDIX SECTION THAT GOES THROUGH THE RISK-BASED APPROACH.
ALL THE OTHER FUNDS, INFORMATION ABOUT THOSE FUNDS AS WELL.
BUT DUE TO TIMING, WE DON'T WANT YOU ALL TO HAVE TO SIT THROUGH A TWO-HOUR PRESENTATION BY CLAIRE AND I.
ANY QUESTIONS THAT YOU ALL HAVE, HAPPY TO ANSWER THOSE, AND THEN ALSO ANYTHING THAT YOU ALL WOULD LIKE TO INCORPORATE IT INTO FEATURE AUDITS.
>> TRUSTEES DON'T HAVE A MOTION TO REVIEW AND RECOMMEND TO THE FULL BOARD OF TRUSTEES APPROVAL OF THE ANNUAL AUDIT, COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDING JUNE 30, 2022.
>> IT'S BEEN MOVED BY TRUSTEE FLORES AND SECONDED BY TRUSTEE [INAUDIBLE] THAT, WE REVIEW AND RECOMMEND TO THE FULL BOARD OF THE TRUSTEES APPROVAL OF THE ANNUAL COMPREHENSIVE FINANCIAL REPORT TO THE FISCAL YEAR END IN JUNE 30, 2022.
IS THERE DISCUSSION? JESSE FLORENCE.
>> WHAT YOU'RE TELLING ME, BOTTOM LINING THIS THING IS THAT DUANE'S AND HIS TEAM HAVE DONE A FANTASTIC JOB.
>> YES. WHEN WE FIRST TOOK THIS AUDIT OVER, WE WOULD COME TO THIS GROUP WITH SEVERAL RECOMMENDATIONS AND OVER THE COURSE OF THE YEARS, THOSE HAVE REALLY DWINDLED NOW TO WHERE WE DON'T HAVE ANYTHING THAT WE HAVE TO REPORT TO THIS GROUP.
OF COURSE AND DISTRICT OF THIS SIZE ALWAYS HAS THINGS, THERE ARE IMPROVEMENTS TO BE MADE, BUT THAT'S WHAT ANY DISTRICT AND SO WE REALLY DO APPRECIATE ALL THE HARD WORK THAT IS PUT INTO THIS AUDIT.
THERE ARE SEVERAL DEPARTMENTS THAT WE HAVE TO SPEAK WITH AS PART OF THE AUDIT.
WE HAVE WEEKLY STATUS MEETINGS WHERE THERE'S AN UPWARDS OF 35-40 PEOPLE ON THE CALL.
WE REALLY DO APPRECIATE THEM AND ALL OF THEIR HARD WORK DURING THE COURSE OF THE AUDIT. THAT'S REALLY GOOD.
[00:35:02]
>> THANK YOU. JESSE, CARRY ON.
>> I HAVE JUST A FEW QUESTIONS.
THE FIRST QUESTION IS, HOW LONG HAVE YOU BEEN THE AUDITOR FOR THE DISTRICT?
>> DURING THAT TENURE, HAVE YOU EVER FOUND ANY MATERIAL WEAKNESSES?
>> IN TERMS OF MATERIAL WEAKNESSES, I'D HAVE TO GO BACK AND LOOK.
I KNOW THAT WE'VE HAD SEVERAL SIGNIFICANT DEFICIENCIES BEFORE, BUT THE FIRST COUPLE OF YEARS WE MAY HAVE HAD A MATERIAL WEAKNESS I'LL HAVE TO GO BACK AND CHECK.
>> I'D JUST LIKE TO HAVE THAT ANSWERED.
>> THEN YOU MADE A STATEMENT REGARDING INTERNAL CONTROLS OVER FINANCIAL OF REPORTING AND YOU SAID THAT THERE THINGS THAT COME UP BUT YOU DON'T FEEL LIKE YOU HAVE TO REPORT TO THE BOARD OR TO THIS GROUP.
>> THEY'RE ALWAYS GOING TO BE PROCESSED IMPROVEMENTS THAT WE TYPICALLY ARE GOING TO HANDLE AT THE DEPARTMENT LEVEL OR SOMETIMES WE WILL MEET WITH TAMIKA AND DUANE ABOUT TO THOSE ITEMS, BUT THEY'RE NOT INSTANCES WHERE THE INTERNAL CONTROL, WE FEEL LIKE THE IMPROVEMENT IS NEEDED, WHERE IF THEY DIDN'T INCORPORATE IT, THERE WOULD BE A MATERIAL WEAKNESS THAT WOULD ARISE OR A MATERIAL MISSTATEMENT WITH REGARDS TO THAT ITEM.
BUT THERE COULD BE IMPROVEMENTS THAT WE LOOK AT AND SAY BASED OFF OF OUR EXPERIENCE DEALING WITH ANOTHER DISTRICT THAT THEY'VE INCORPORATED, X AND WE FEEL LIKE IT WOULD ASSIST IN TERMS OF EFFICIENCIES AT THE STAFF LEVEL OR SOMETHING LIKE THAT.
>> ARE THOSE ITEMS DOCUMENTED IN ANY WAY.
>> THEY'RE DOCUMENTED IN OUR WORK PAPERS SO WE COULD PROVIDE THAT INFORMATION.
>> COULD YOU PROVIDE THAT INFORMATION AND SHARE IT WITH US, PLEASE.
[LAUGHTER] I'D JUST LIKE TO SEE THAT.
>> WE OF COURSE, CAN PROVIDE THAT INFORMATION TO YOU ALL.
>> ALSO ON THE FEDERAL AWARDS?
>> YOU SAID YOU TESTED ESSER 1, 2 AND 3 SO I WOULD ASSUME TESTING ESSER 1, 2 AND 3 I WAS LOOKING AT THE FUNDING MECHANISM AND HOW WE USE THAT?
>> OR WAS IT LOOKING AT WHAT WE TOLD THE STATE WE WOULD USE THE ESSER MONEY FOR?
AS PART OF THE COMPLIANCE REQUIREMENTS, SO WE ARE LOOKING AT WHETHER OR NOT IT IS, IN GENERAL ALLOWABLE UNDERNEATH THE GRANT, BUT ALSO ANY INFORMATION THAT'S PROVIDED TO TEA AS PART OF THE PLAN AND WE DO REVIEW THAT AS WELL SO IT IS TWO-FOLD.
>> DID WE HAVE ANY DOCUMENTATION OF ANY THINGS THAT MIGHT BE OF SOME INTEREST OR CONCERN TO THE BOARD?
>> NO, NOT WITH REGARDS TO THAT FUNDING.
TRUSTEES IT'S BEEN MOVED AND SECONDED THAT WE ACCEPT THE REPORT ALL THOSE IN FAVOR.
NOW, WE'RE ON ITEM 5.6, REPORT ON STATUS OF AUDIT FOLLOW-UP.
>> JUSTIE FORM AND OTHER TRUSTEES.
MR. THOMPSON AND ROBERT RUBLE, CHIEF INTERNAL AUDIT OFFICER WE ONLY HAD AND I HAVE ISA HERNANDEZ HERE.
SHE'S GOING TO HELP WITH THE REPORT, BUT IT'S PRETTY EASY.
>> YES. MY NAME IS ISA HERNANDEZ, AUDIT MANAGER, AND I'LL REPORT ON THE STATS.
THE AUDIT FOLLOW-UP WAS DONE FOR RECOMMENDATIONS DUE IN THE PERIOD OF SEPTEMBER 1ST THROUGH AUGUST 31ST, THERE WERE THREE RECOMMENDATIONS DONE FOR FOLLOW-UP.
OUR OFFICE COMPLETED THREE FOLLOW-UP AUDITS AND FOUND ALL RECOMMENDATIONS WERE IMPLEMENTED.
>> TRUSTEES ARE THERE ANY QUESTIONS? NO QUESTIONS.
>> 5.7. I WILL ALSO REPORT ON THAT.
FROM SEPTEMBER FIRST 2022 THROUGH OCTOBER 14TH,
[00:40:03]
2022, THAT'S THE TIMEFRAME.THE OFFICE OF INTERNAL AUDIT RECEIVED 298 REPORTS ON THE PAGE ONE OF THREE 298, PAGE TWO OF THREE, FOR FISCAL YEAR 2020 THROUGH 2022, THE OFFICE OF INTERNAL AUDIT RECEIVED THE FOLLOWING REPORTS.
I'M GOING TO BREAK IT DOWN BY YEAR.
IT'S FROM 2019 TO 2020, RECEIVED 1316.
FOR FISCAL YEAR 2020 TO 2021 1169, AND LASTLY FOR FISCAL YEAR 2021 TO 2022 1884.
MOVING ON TO PAGE THREE OF THREE.
THE HOTLINE DISTRIBUTION IS FROM AUGUST FIRST THROUGH OCTOBER 14TH, TIMEFRAME.
>> I'M SORRY, SEPTEMBER 1ST THROUGH OCTOBER 14TH, 2022 TIMEFRAME.
MOVING ONTO THE SECOND TABLE, THE AGE REPORTS.
WE ALSO HAD 89 AND WE COULD BREAK IT DOWN FROM JUNE.
WE HAD THREE AUGUST, WE HAD THREE SEPTEMBER 40, OCTOBER 43, WHICH EQUALS 89.
>> YOU CAN SEE AT THE TOP OF PAGE ONE THAT WE'VE CALLED THESE PERIODS IT DOESN'T FALL INTO A QUARTER SO WE HAVE TO CUT OFF AT A CERTAIN DAY BECAUSE OF THE AUDIT MEETING DATES.
WE'RE BASICALLY THROUGH A FIRST-QUARTER, IF YOU WILL TRACKING CLOSE TO 500, WHICH IS ABOUT 25 PERCENT OF WHAT WE SAW LAST YEAR ANNUALIZED.
I JUST WOULD POINT OUT THAT THERE'S NO REAL CLEAN CUTOFF SO WE JUST GIVE YOU THE DATA AS IT COMES IN. ANY QUESTIONS?
>> TRUSTEES ARE THERE ANY QUESTIONS? NO ONE HAS ANY QUESTION. TRUSTEE FLORES.
>> SURE. I'M LOOKING AT PAGE THREE, JUST BALLPARK IT FOR ME HERE.
THE TOP PORTION OF THIS IT SAYS POLICE DEPARTMENT ASSIGNED 43, CLOSE SEVEN.
I MEAN, A LOT OF THESE WILL NEVER CLOSE, BECAUSE THEY NEVER FOUND OUT WHOEVER WAS THE PURP OR WHATEVER HAPPENED.
I'M JUST CURIOUS AS TO HOW THAT COULD EVER GET TO ZERO.
I MEAN, I CAN UNDERSTAND THAT THE LEGAL SERVICES TITLE NINE, YIELD COMPLIANCE AND PSO I MEAN, I CAN UNDERSTAND THOSE WILL CLOSE EVENTUALLY.
I CAN SPECULATE THAT AN INVESTIGATION MIGHT TAKE LONGER.
THE AGING OF THOSE THOUGH AT THE POLICE DEPARTMENT ARE JUST FROM SEPTEMBER AND OCTOBER, IF YOU LOOK DOWN SO THEY'RE PRETTY RECENT REPORTS AND I CAN MAYBE LOOK BACK AT SOME HISTORICAL DATA TO SEE WHAT'S THE AVERAGE TIME TO CLOSE THINGS, LIKE THAT, MAYBE THAT WOULD BE HELPFUL.
>> YEAH. I MEAN, I JUST DON'T REMEMBER EVER SEEING THE POLICE.
I ALWAYS REMEMBER SEEING LIKE LEGAL SERVICES OR AUDIT OR IF YOU GUYS ARE DOING IT LEGAL SERVICES OR PSO AND I'M USED TO SEEING THAT I WOULD JUST [OVERLAPPING]
>> BASED ON THE AGING OF THIS.
THEY CAME IN IN SEPTEMBER AND OCTOBER SPIKE AND IT COULD BE SOMETHING THAT THE POLICE HAVE TO HANDLE AND I'LL CHECK BACK WITH PSO AND POLICE TO SEE WHERE WE'RE AT WITH A LOT OF THESE CASES.
>> BECAUSE IT WAS LIKE COPPER FROM ONE OF OUR AC UNIT.
I DON'T [INAUDIBLE] NEVER CLOSE.
I MEAN, JUST WILL NEVER KNOW WHO DID IT.
>> WE MIGHT HAVE KEPT IT AND SO WE'LL SEE.
I CAN SEE THAT IT MIGHT TAKE A MONTH IF IT CAME IN LATE SEPTEMBER.
I'LL LOOK AT TRENDING DATA, GOING THROUGH THE END OF THE YEAR AND SEE WHERE WE'RE AT IN CLOSING THOSE.
>> ARE YOU FINISHED TRUSTEE FLORES?
>> ANY OTHER QUESTIONS? TRUSTEE WHITE THANKS FOR JOINING US. ANY QUESTIONS?
>> I HAVE JUST A FEW QUESTIONS.
I'LL JUST PICK UP ON THE POLICE DEPARTMENT.
IT MIGHT BE THAT WE MIGHT NEED TO BREAK THAT DOWN BECAUSE IT CAN BE DIFFERENT CATEGORIES.
IT CAN BE EMPLOYEE RELATED, IT COULD BE STUDENT RELATED AND TO BE ABLE TO REALLY UNDERSTAND WHY WE'RE NOT CLOSING THOSE,
[00:45:01]
BREAKING THAT DOWN BETWEEN EMPLOYEE AND STUDENT.OR IT COULD BE, DEALING WITH THE PUBLIC.
IT'D BE REALLY GOOD TO UNDERSTAND THAT.
I THINK WHAT'S REALLY STRIKING TO ME IS THE UPTAKE IN THE HOTLINE CALLS.
THAT'S STRIKING AND SO IT WOULD REALLY BE INTERESTING TO MAYBE, I KNOW WE'VE BROKEN THEM DOWN BASED ON THESE CATEGORIES ON THE LEFT BUT TO REALLY TRY TO ANALYZE WHY SUCH AN UPTAKE FROM 2019, 2020, 1300 AND NOW WE'RE AT 2021 2022, 1800.
>> YES. TRUSTEE FORMAN SO THE THE MAIN CAUSE ON THE LOW NUMBERS IN 19, 20, COVID KIDS WEREN'T IN SCHOOL AND SO WE FELL OFF.
WE HAD BEEN TRENDING 16 TO 1,800 OVER A PERIOD OF TIME, AND I ROUNDED A LITTLE BIT.
1884 IS ALMOST 2,500 A QUARTER.
WE HAVE A LITTLE BIT MORE THAN ONE-QUARTER BECAUSE A LITTLE BIT OF OCTOBER IS IN THESE NUMBERS, JULY, AUGUST, SEPTEMBER WOULD BE A FULL QUARTER.
IT'S ROUGHLY 500, WHICH IS TIMES FIVE, IT'S ABOUT 2000 A YEAR, 1880.
I HATE TO SAY IT WE'RE RIGHT ON TARGET, BUT IT'S A LOT OF ITEMS THAT COME THROUGH THAT HAVE TO BE TRIAGED OUT TO PSO, TITLE NINE, POLICE AND THERE WERE CERTAIN CATEGORIES THAT AUTOMATICALLY, I CAN HIGHLIGHT THOSE THAT GO AUTOMATICALLY TO POLICE ASSAULT WEAPONS.
>> SEVERAL OTHERS THAT ARE LISTED IN THE CATEGORY.
THOSE ARE AUTOMATIC. WE SEND THEM DIRECTLY.
THEY OBVIOUSLY HAVE TO INVESTIGATE AND YOU CAN SEE SOME OF THOSE NUMBERS ARE THE 43, 36 OPEN.
MAYBE COLOR CODE THAT SO YOU CAN SEE.
INTERNAL ONLY INVESTIGATES FRAUD AND FINANCIAL IRREGULARITIES BY POLICY PSO, TITLE NINE, THOSE WE DO OTHER CATEGORIES AND POLICE HAVE THEIR SPECIFIC ITEMS, THEY HAVE TO DO.
>> ANOTHER TITLE NINE, COMPLAINTS TRENDING ABOUT THE SAME.
>> YOU DON'T HAVE TO DO IT NOW.
[OVERLAPPING] YOU CAN GET IT FOR ME LATER.
[OVERLAPPING] I'M JUST CURIOUS IF THEY ARE TRENDING ABOUT THE SAME.
ARE THERE ANY ADDITIONAL QUESTIONS? WE ARE AT 5.8, REPORT OF STATUS OF AUDIT PLAN AND SUFFICIENCY OF DEPARTMENT RESOURCES.
>> THANK YOU, TRUSTEE. I'LL PRESENT ON THIS.
WE'VE PRESENTED THE AUDIT PLAN WITH THE HOURS, BUDGETS.
YOU CAN SEE THAT WE'VE COMPLETED FOUR FROM THIS PLAN YEAR ALREADY.
ONE'S DELAYED TILL LATER IN THE YEAR AND NINE HAVE NOT BEEN STARTED.
I THINK WE'RE STILL ON TRACK TO HAVE A VERY GOOD YEAR, COMPLETE ALL THESE AS REQUIRED AND I'LL BE GLAD TO ANSWER ANY QUESTIONS.
AS FAR AS STAFFING GOES, UNFORTUNATELY, I DID HAVE A TERMINATION NOTICE THAT CAME IN AND BEFORE THAT I WAS FULLY STAFFED FOR ABOUT A YEAR, YEAR-AND-A-HALF SO I WAS FEELING PRETTY GOOD AND NOW WE'LL BE BACK RECRUITING ONE EMPLOYEE IN THE VERY NEAR FUTURE.
>> ARE THERE ANY QUESTIONS, TRUSTEES? [NOISE]
>> WHAT WAS THE TITLE OF YOUR EMPLOYEE WHO TURNED IN THE NOTICE THAT WHAT'S THE POSITION THAT HAS BEEN VACATED?
>> WELL, HE'S STILL IN TRUSTEE WHITE.
HE'S STILL THROUGH THE END OF THE MONTH.
>> PRETTY EXPERIENCED AUDITOR.
DONE A GOOD JOB FOR US. SORRY TO SEE HIM GO.
>> ALSO I HAVE A QUESTION AS FAR AS WHAT IS THE GOAL FOR YOU GUYS TO CLOSE OUT BOND PROJECTS?
[00:50:01]
SUCH AS IF THERE WAS A PROJECT FROM, LET'S SAY 2008, WHAT IS THE GOAL TO HAVE IT WRAPPED UP AND COMPLETED AND THE CONTRACTOR COMPLETELY PAID OUT?>> FROM THE AUDIT SIDE, TRUSTEE.
WE HAD STARTED A PROJECT ON BOND CLOSEOUT TO DO THOSE PROJECTS OR A SAMPLE OF THOSE PROJECTS BEING COMPLETED THIS FISCAL YEAR.
I COULDN'T TELL IF IT WAS AN '08 OR '15 OR WHAT HAVE YOU.
PART OF OUR WORK WOULD BE IN OUR AUDIT THAT WE DID WAS TO ENSURE THAT WE DO THAT IN A TIMELY MANNER.
IF YOU'RE ASKING SPECIFICALLY, ARE THERE ANY OTHER '08S I DO NOT KNOW THAT RIGHT NOW.
>> I GUESS MY QUESTION IS AND I KNOW IT TAKES AWHILE FOR SOME TIME.
THE BOND COULD HAVE BEEN VOTED ON IN 2015 AND THEY REALLY DON'T GET STARTED UNTIL 2018. IT'S A PROCESS.
BUT ONCE EVERYTHING IS COMPLETED, IS THERE A TIMELINE ONCE THE PROJECT IS STARTED?
>> THAT WE WOULD DO CLOSE OUT WORK, THE INTERNAL AUDIT DEPARTMENT OR THAT THE CONSTRUCTION DEPARTMENT?
>> THE CONSTRUCTION DEPARTMENT.
BUT IN THAT SOMETHING THAT YOU WOULD EVENTUALLY GET TO.
>> WE HAD INCLUDED THAT COVERAGE IN THE AUDIT PLAN AND THEN SOME OF THESE BOND FUNDED PROJECTS BECAUSE TO YOUR POINT, IT SHOULD BE DONE IN A CERTAIN AMOUNT OF TIME.
NOW, IS THAT 180 DAYS FROM SUBSTANTIAL COMPLETION OR I DON'T KNOW THE EXACT RULES RIGHT NOW.
I THINK EACH ONE VARIES BECAUSE OF FINAL PUNCH OUT LIST AND WHAT HAVE YOU.
I MIGHT NOT BE ABLE TO ANSWER YOUR QUESTION TODAY.
MAYBE MORE SUITED TO A CONSTRUCTION AREA MIGHT HAVE MORE DEFINITIVE INFORMATION FOR YOU.
>> TO FOLLOW UP ON TRUSTEE WHITES' QUESTIONS.
I THINK IT'S A REALLY GOOD QUESTION FOR THE AUDIT PLAN.
YOU'VE LISTED 1,400 HOURS FOR AUDITING CONSTRUCTION SEVEN AND EIGHT, ARE YOU COMFORTABLE THAT THAT'S ENOUGH TIME TO ADDRESS AND REVIEW WHAT TRUSTEE WHITE WAS ASKING ABOUT CLOSEOUTS AND STUFF LIKE THAT?
I COME BACK AND REPORT EACH QUARTER AND SAY IT'S REALLY GOING TO BE 2,000 OR 2,500.
ONCE WE GET INTO IT, AND OF COURSE, AS THEY RAMP UP PROJECT COMPLETION AND CLOSE OUT, IT REALLY DOES ADD A LOT OF WORK.
WE CAN ONLY GUESS IT'S SO MUCH IN A YEAR THAT WE WOULD INCLUDE AND COVER.
>> SO YOU WOULD COME BACK TO US AND SAY, ''HEY, I'M GOING TO CHANGE THE AUDIT PLAN, I'M GOING TO MOVE SOME HOURS.'' [OVERLAPPING]
>> YEAH, WE NEED TO SPEND MORE TIME IN THIS AND YOU WOULD SAY YES, DO THAT BECAUSE IT'S MORE IMPORTANT VERSUS SOMETHING ELSE THAT MIGHT BE LOWER RISK AT THE TIME. YES, SIR.
>> YEAH, BECAUSE I WAS COMPLAINING ABOUT THE SUPERINTENDENT'S EXPENSE REPORT IS DOWN FOR LIKE, I DON'T KNOW HOW MANY HUNDREDS OF HOURS OR SOMETHING AND I'M LIKE, HOW COULD THAT POSSIBLY TAKE THAT LONG? IF THAT'S YOUR KITTY WHERE YOU POCKET AWAY SOME HOURS I'M TOTALLY GOOD WITH THAT. THANK YOU.
>> I HAVE JUST A FEW QUESTIONS IF THERE ARE NO ADDITIONAL QUESTIONS FROM THE TRUSTEES.
ON ITEM NUMBER 25 OF THE AUDIT PLAN, WHICH IS THE SECURITY.
WE'RE IN THE PROCESS OF A LOT OF SECURITY UPGRADING THAT'S TAKING PLACE RIGHT NOW.
ARE WE COMFORTABLE AND WAITING UNTIL THAT UPGRADING HAS TAKEN PLACE? OR ARE WE GOING TO BE ENGAGED PRIOR TO THAT?
>> TWO THINGS, IN ADDITION TO TEA SECURITY AUDITS THAT HAVE BEEN GOING ON AROUND THE DISTRICT, I HAD PURPOSELY WAITED A LITTLE BIT TO SEE HOW MUCH COVERAGE THAT MIGHT PROVIDE.
THE LAST BOARD MEETING, I BELIEVE THEY HAD COMPLETED ONLY 20 OF THOSE.
I NEED TO FOLLOW UP AND SEE, ARE THEY GOING TO GET ANOTHER HUNDRED DONE OR HOW HAS THAT ALL GOING TO WORK? THERE WERE SOME SPECIFIC REQUIREMENTS PUT IN PLACE BEFORE THE SCHOOL YEAR STARTED WITH THREE TIMES A DAY TO WALK AROUND,
[00:55:01]
MAKING SURE EVERYTHING'S LOCKED UP AT EACH AND EVERY CAMPUS.A LOT OF STUFF HAS BEEN GOING ON AND I THOUGHT WE WOULD WAIT A LITTLE BIT AND SEE HOW THAT ALL FELL OUT.
WE CAN GO OUT AT ANY POINT IN TIME IN CONJUNCTION WITH CAMPUS-BASED CONTROL AUDITS OR ACTIVITY FUND AUDITS AND WALK AROUND THE SCHOOL.
BUT I WOULD HOPE THESE OTHER PLANS THAT HAD BEEN DEVELOPED ARE BEING FULLY IMPLEMENTED, EACH AND EVERY CAMPUS.
>> THE ONLY REASON I ASKED THAT QUESTION, TO ME IT WOULD JUST MAKE MORE SENSE TO HAVE A GOOD UNDERSTANDING OF WHAT THE DISTRICT'S OVERALL SECURITY PLAN IS PRIOR TO JUST THE CAMPUS PLAN AND THEN INCORPORATING THAT BY TESTING SOME OF THE CAMPUSES.
>> I THINK THERE SHOULD BE AN OVERALL SECURITY PLAN.
>> OBVIOUSLY A LOT GOING ON IN THAT AREA BEFORE SCHOOL STARTED.
>> THAT PROBABLY WE CAN DEFINITELY ADDRESS THAT VERY POINT AS WE START PLANNING FOR THIS AND SEE WHERE WE'RE AT.
>> THEN I JUST HAVE A QUESTION ON NUMBER 27, WHICH IS THE PIMS. ARE WE LOOKING AT HOW WE ARE REPORTING TO PIMS OR EXACTLY WHAT WE'LL WE BE LOOKING AT BECAUSE WE'VE GOT 1,200 HOURS DESIGNATED FOR THE PIMS.
>> OBVIOUSLY PIMS DATA IS VERY IMPORTANT.
WE NEED TO ENSURE THE ACCURACY AS IT GOES INTO THE SYSTEMS, ARE WE ACCUMULATING ALL THE DATA? A LOT OF WORK WOULD BE DONE ON THE FRONT END AND WHAT CONTROLS ARE IN PLACE TO MAKE SURE WE HAVE THAT DATA INTEGRITY FOLLOWING IT ALL THE WAY THROUGH.
I DON'T REALLY HAVE A GOOD PLAN RIGHT NOW.
I COULD EXPLAIN MORE THAN THAT.
>> THAT'S FINE. I JUST WANTED TO HAVE SOME IDEA WHICH WAY WE WERE [OVERLAPPING].
>> I KNOW PIMS AN AUDIT OVER THAT WAS DONE SEVERAL YEARS AGO.
BUT IT'S A BIG PART OF DISTRICT INFORMATION, OBVIOUSLY REPORTING.
>> AND FUNDING. YES, MA'AM. OF COURSE.
>> THAT'S WHY I HAD A QUESTION ABOUT THAT.
THE AUDIT PLAN WE HAVE BUT DO WE HAVE ANY INVESTIGATIONS TAKING PLACE THAT ARE NOT A PART OF THE AUDIT PLAN?
>> INVESTIGATIONS ARE, AND IF YOU LOOKED AT THE PRIOR, I THINK WE'VE HAD ZERO FOR THE FIRST QUARTER.
WE COMPLETED THE TWO THAT WE HAD.
THAT WAS OUR NONE SINCE SEPTEMBER 1 I BELIEVE.
I DON'T KNOW IF THE LINE ITEM IS SHOWING UP HERE.
>> BUT WE DO BUDGET FOR INVESTIGATIONS. YES, MA'AM.
>> YEAH, I SEE IT, 1,500 HOURS AND WE'VE ALREADY USED 424.
>> OH, THERE IT IS. I'M SORRY.
>> NUMBER 21. MY HOLE PUNCHED OUT, YES.
>> WE'RE ON TO ITEM 5.9, REPORT ON RESULTS OF THE INTERNAL QUALITY ASSESSMENT REVIEW.
>> TRUSTEES, EVERY YEAR WE COMPLETE INTERNAL QUALITY ASSESSMENT REVIEW AS PART OF FOLLOWING INHERITS THE IA STANDARDS INSTITUTE OF INTERNAL AUDIT STANDARDS.
THIS IS ALSO REQUIREMENT AS WE MOVE TO AN EXTERNAL WHICH WE COMPLETED LAST YEAR.
WE FOLLOW THE SAME FORMAT WE'VE IDENTIFIED IF OUR CHARTER, NO CHANGE TO THE CHARTER, NO CHANGE TO OUR INDEPENDENCE, I'VE NOTED ALL THAT IN HERE.
WE DID TEST OUR PLANNING PROCESS AND DOCUMENTATION PROCESSES IN A SAMPLE OF AUDITS, AND WE'VE CONCLUDED THAT WE'RE STILL ADHERING TO ALL STANDARDS.
THAT WAS THE RESULT OF THE EXTERNAL REVIEW.
OUR GOAL IS TO CONTINUE TO HAVE FULL COMPLIANCE WITH ALL STANDARDS AT ALL TIMES.
BE GLAD TO ANSWER ANY QUESTIONS.
>> TRUSTEES, ARE THERE ANY QUESTIONS?
>> THE REVIEW THAT YOU HAD DONE LAST YEAR THAT WAS THE PEER REVIEW?
>> THAT WAS THE EXTERNAL. YES, SIR.
COLLOQUIALLY CALLED PEER REVIEW, BUT THAT'S [OVERLAPPING] EXTERNAL QUALITY ASSURANCE VERSUS INTERNAL.
WE DO INTERNAL REVIEW PROCEDURES IN EACH AND EVERY PROJECT.
[01:00:02]
BUT THEN WE GO BACK AND PULL THIS ALL TOGETHER AND SAY, IS THERE ANYTHING ELSE THAT WE MIGHT HAVE MISSED? IS OUR PLANNING ADEQUATE? IS OUR FOLLOW-UP ADEQUATE? IT'S PART OF JUST ONGOING QUALITY ASSURANCE.>> HOW OFTEN WILL YOU HAVE THE PEER-REVIEW?
>> EVERY FIVE YEARS? OKAY. THANK YOU.
>> THAT'S THE REQUIREMENT. UNLESS YOU'RE ASKED FOR IT SOONER.
[OVERLAPPING] I THINK YOU DO HAVE AUDITORS HERE.
CAN YOU TELL ME THE ROLES AND RESPONSIBILITIES THAT YOUR AUDITORS HANDLE? FOR INSTANCE, I KNOW THAT WE HAVE A REPORT OF A CAMPUS ASKING FOR A AUDIT OF THEIR ACTIVITY FUND.
WHO WOULD ACTUALLY HANDLE THAT AMONGST YOUR STAFF? I JUST WANT TO BASICALLY KNOW WHAT EACH ONE OF THEM HANDLES.
>> SURE. OUR NORMAL PROCESS WOULD BE AN AUDIT ASSIGNMENT WOULD GO TO ONE OF MY MANAGERS I'VE FOUR MANAGERS.
THEN IF YOU LOOK AT THE ORG CHART UNDER 5.8, THAT IT COULD BE THE STAFF LIST UNDER THAT MANAGER.
THAT MIGHT BE WHAT WE WOULD CALL A LEAD AUDITOR AND START WORKING ON PLANNING IN CONJUNCTION WITH THAT MANAGER WHO'S MANAGING SEVERAL PROJECTS, AUDITS, AND INVESTIGATIONS.
CONCEIVABLY OR INTERNAL QUALITY ASSURANCE REVIEW WORK AND ALL THAT STUFF.
THE NORMAL PROCESS IS THAT WE'D LOOK AT SPECIFIC REQUIREMENTS OF THAT PROJECT.
WHAT THAT DEPARTMENT UNDER A OPERATION, WHAT ARE THEY REALLY DOING.
WHAT BARRIERS THEY MIGHT HAVE TO COMPLETING WORK IN A TIMELY AND EFFICIENT MANNER.
GO THROUGH ALL THE PLANNING PROCESS AND DEVELOP THEN SPECIFIC, WHAT WE CALL TESTING AREAS THAT WOULD GO OUT AND TEST.
IF IT WAS ASSETS OR SCHOOL-BASED ASSETS, WE WOULD LOOK, GO IDENTIFY ASSETS AND SEE WHERE THEY'RE AT AND HOW THEY'RE LOCATED.
THEN THAT LEAD AUDITOR AND MANAGER WOULD THEN WRITE A REPORT, WRITE RECOMMENDATIONS IF THERE ARE ANY, AND COMBINE THOSE AND CONSOLIDATE INTO AN AUDIT REPORT WHICH THEN WOULD BE REVIEWED BY MY DEPUTY AND MYSELF.
WE WOULD OBVIOUSLY HAVE MEETINGS DURING THE WAY, A LOT OF INTERVIEWS, A LOT OF PROGRESS MEETINGS WITH DEPARTMENT STAFF, AND THEN WE ALWAYS HAVE ANY FINAL EXIT MEETING WITH A DRAFT REPORT IN HAND WITH THEIR RESPONSES.
WE HAVE THE WHOLE THING COMPLETED.
ARE THERE ANYTHING ELSE WE NEED TO DO OR CLARIFY OR CLEAR UP BEFORE WE THEN SEND THIS REPORT TO THE AUDIT COMMITTEE FOR THEIR REVIEW.
>> BASICALLY, NO ONE IS ASSIGNED TO A CERTAIN AREA.
EVERYBODY BASICALLY DOES ASSIGNMENTS AS GIVEN.
>> I THINK THAT'S THE FIRST STATEMENT.
I SAID, HERNANDEZ WAS HERE AND ONE STAFF THAT'S SPECIFICALLY CHARGED WITH INVESTIGATIONS, HIS NAME IS ENRIQUE FUENTES.
BUT MOST OF MY STAFF HAVE EXPERIENCE IN BOTH AUDIT AND INVESTIGATION.
WE TRY TO CROSS TRAIN SO THAT WE TAKE A VERY SIMILAR APPROACH.
INVESTIGATIONS COME IN THROUGH THE HOTLINE OR COULD BE ANONYMOUS TIPS OR DIRECT COMMUNICATION.
IF WE CAN IDENTIFY A POLICY VIOLATION, THAT RELATES TO OUR AREA, WE'LL GO AND INVESTIGATE IT.
BUT WE STILL WANT TO MAKE A VERY CLEAR PROCESS, HAVE A FINAL REPORT, AND MAKE RECOMMENDATIONS, IF THERE'S CONTROL WEAKNESSES IDENTIFIED.
BECAUSE WE DON'T WANT THE SAME PROBLEM TO HAPPEN AGAIN.
>> ANY ADDITIONAL QUESTIONS? THANK YOU, MR. ROE. THE BOARD WILL NOW RETIRE TO CLOSE SESSION.
[6. Closed Session - The Board will retire to closed session pursuant to Texas Government Code Section 551 concerning the following sections:]
THE PUBLIC AND STAFF ARE WELCOME TO STAY CONNECTED TO ZOOM WHILE THE BOARD LEAVES THE MEETING TO ATTEND THE CLOSED SESSION.THE PUBLIC PORTION OF THE MEETING WILL RESUME AFTER CLOSED SESSION.
THE BOARD WILL RETIRE TO CLOSED SESSION PURSUANT TO THE TEXAS GOVERNMENT CODE, SECTION 551, CONCERNING ANY AND ALL PURPOSES PERMITTED BY THE ACT, INCLUDING BUT NOT LIMITED TO THE FOLLOWING SECTIONS.
SECTIONS 551.076, TO DELIBERATE REGARDING THE DEPLOYMENT OR SPECIFIC OCCASIONS FOR IMPLEMENTATION OF SECURITY, PERSONNEL, OR DEVICES, OR SECURITY AUDIT.
SECTION 551.089, TO DELIBERATE SECURITY ASSESSMENTS OR DEPLOYMENTS
[01:05:01]
RELATING TO INFORMATION RESOURCES TECHNOLOGY, NETWORK SECURITY INFORMATION AS DESCRIBED BY SECTION 2059.055B.OR THE DEPLOYMENT OF SPECIFIC OCCASIONS FOR IMPLEMENTATION OF SECURITY PERSONNEL, CRITICAL INFRASTRUCTURE, OR SECURITY DEVICES.
SECTION 551.129, TO CONSULT WITH ITS ATTORNEY BY USE OF TELEPHONE CONFERENCE CALL, VIA VIDEO CONFERENCE CALL, OR COMMUNICATIONS OVER THE INTERNET AND AN OPEN MEETING AND/OR CLOSED MEETING.
THE TIME NOW IS 3:35, AND WE SHOULD BE GONE ABOUT 30 MIN.
IT IS NOW 03:54 P.M. AND WE ARE BACK IN OPEN SESSION.
THE BOARD TOOK NO ACTION IN CLOSED SESSION.
[7. Final Internal Audit Reports]
CONSIDER INTAKE POSSIBLE ACTION TO ACCEPT THEN MAKE FILE INTERNAL AUDIT REPORTS, SECURITY AUDIT REPORT.ITEM 7.1 IS AN ITEM THAT APPEARED ON THE SEPTEMBER 26TH MEETING AGENDA, BUT WAS INADVERTENTLY NOT VOTED ON.
DO I HAVE A MOTION TO ACCEPT AND MAKE FINAL INTERNAL AUDIT REPORTS, SECURITY AUDIT REPORT?
>> IT HAS BEEN MOVED BY TRUSTEE FLORES AND SECOND BY TRUSTEE CARRYON, THAT WE ACCEPT AND MAKE FINAL INTERNAL AUDIT REPORTS, SECURITY AUDIT REPORT, 23-AUD016.
IS THERE ANY DISCUSSION? [NOISE] TRUSTEES, ARE YOU READY TO VOTE? ALL THOSE IN FAVOR? ALL THOSE OPPOSED?
>> THE MOTION PASSES, THREE, ZERO.
>> YOU'VE JUST ADOPTED THE MOTION TO ACCEPT AND MAKE FINAL INTERNAL AUDIT REPORTS, SECURITY AUDIT REPORT 23-AUD016.
CONSIDER AND TAKE POSSIBLE ACTION TO ACCEPT AND MAKE FINAL INTERNAL AUDIT REPORTS, SECURITY AUDIT REPORTS, 22-AUD08, 22-AUD00802, 22-AUD00401.
DO I HAVE A MOTION TO ACCEPT AND MAKE FILE ON INTERNAL AUDIT REPORTS, SECURITY AUDIT REPORTS?
>> IT HAS BEEN MOVED BY TRUSTEE FLORES AND SECONDED BY TRUSTEE CARRYON, THAT WE MAKE FINAL INTERNAL AUDIT REPORTS, SECURITY AUDIT REPORT 22-AUD008-01, 22-AUD008-02, AND 22-AUD004-01.
IS THERE A DISCUSSION? ALL THOSE IN FAVOR, PLEASE CAST YOUR VOTES BY RAISING YOUR HAND.
YOU HAVE JUST ADOPTED THE MOTION TO ACCEPT THE MAKEFILE INTERNAL AUDIT REPORTS, SECURITY AUDIT REPORTS TO 22-AUD008-01, 22-AUD-008-02, AND 22-AUD-004-01.
CONSIDER AND TAKE POSSIBLE ACTION TO ACCEPT THE MAKEFILE INTERNAL AUDIT REPORTS, BOND-FUNDED PROJECTS, COMPETITIVE SEAL PROPOSAL AUDIT, REPORT NUMBER 23 AUD005-01.
DO I HAVE A MOTION TO ACCEPT AND MAKE FINAL INTERNAL AUDIT REPORT BOND-FUNDED PROJECTS COMPETITIVE SEALED BID PROPOSAL, AUD REPORT 23-AUD-005-01? SUM UP.
IT HAS BEEN MOVED BY TRUSTEE FLORES AND SECONDED BY TRUSTEE KERION THAT WE ACCEPT THEM MAKE FINAL INTERNAL AUDIT REPORT, BOND-FUNDED PROJECTS, COMPETITIVE SEALED PROPOSALS AUDIT REPORT 23-AUD-005-01.
IS THERE A DISCUSSION? WE'D PRESENT THE REPORT TRUSTEE FORMAN.
HI, GOOD AFTERNOON. I'M SHELLY KELLY, AUDIT MANAGER WITH THE INTERNAL AUDIT DEPARTMENT.
THIS IS ACTUALLY THE CSP PROCUREMENT AUDIT REPORT IS ACTUALLY A TWO-PART AUDIT, WHERE WE REVIEWED PROCESSES SURROUNDING THE CONTRACTING OF GENERAL CONTRACTORS FOR BOND-FUNDED PROJECTS,
[01:10:02]
SPECIFICALLY USING THE CSP METHOD.THIS REPORT WILL COVER THE PROCUREMENT PROCESSES REVIEWED AND THEN HOW THE CONTRACTS ARE MANAGED WILL BE COVERED AND REPORTED ON AT A LATER DATE.
THERE WERE THREE OBSERVATIONS IN THIS REPORT, WHICH WERE PRIMARILY LOW-RISK, AND THREE CORRELATING RECOMMENDATIONS.
THE FIRST ONE BEING JUST TO FURTHER AUTOMATE THE EVALUATION SCORING PROCESS TO HOPEFULLY REDUCE SOME OF THOSE MANUAL CLERICAL ERRORS THAT WE SAW IN THE CALCULATIONS.
THE SECOND IS TO DEVELOP A METHODOLOGY FOR THE EVALUATORS TO USE WHEN ASSIGNING POINTS TO THE THREE CRITERIA THAT THEY'RE ASKED TO SCORE ON.
THEN THE THIRD RECOMMENDATION IS JUST TO DEVELOP OR TO UPDATE THE TEMPLATE, POSSIBLY CREATE A FILLABLE FORM FOR THE VENDORS TO USE WHEN SUBMITTING THEIR BIDDING DOCUMENTS TO AGAIN, JUST HOPEFULLY CLEAR UP SOME CONFUSION THAT WE NOTICED WHEN WE WERE REVIEWING THOSE DOCUMENTS.
I'D BE HAPPY TO ADDRESS ANY QUESTIONS.
TRUSTEES, ARE THERE ANY QUESTIONS? I HAVE A COUPLE OF QUESTIONS.
YOU TALKED ABOUT DEVELOPING A METHODOLOGY FOR SCORING.
DO THEY CURRENTLY USE A METHODOLOGY FOR SCORING? YES, MA'AM. THEY HAVE POINTS THAT THERE'S 0-5,1-5, HOWEVER, THERE'S NO CLEAR GUIDANCE ON HOW TO ASSIGN THOSE POINTS.
ONE POINT WOULD REPRESENT VERSUS FIVE POINTS WOULD REPRESENT, AGAIN, JUST FOR THOSE THREE CRITERIA THAT THEY'RE ASKED TO SCORE ON.
THEY ACTUALLY HAVE A METHODOLOGY YOU WANT TO REFINE OR THINK THEY SHOULD REFINE THE WAY THAT THERE ARE AWARDING THE POINTS? NOT NECESSARILY, I THINK IT'S AGAIN, THEY CAN SCORE ANYWHERE 0-5 POINTS MAYBE ON ONE THING BUT HOW DO I KNOW WHAT ONE POINT REPRESENTS VERSUS WHAT FIVE POINTS REPRESENTS? I THINK WE'RE SAYING THE SAME THING, BUT IN A DIFFERENT WAY, BECAUSE THEY CURRENTLY DO HAVE A METHODOLOGY OF PUTTING POINT- OF PUTTING WORD. YES, MA'AM.
WHAT YOU'RE TALKING ABOUT IS MORE OF REFINING THE WAY THAT THEY IDENTIFY WHAT EACH POINT WOULD STAND FOR? YES.
THAT MAKES A LITTLE BIT MORE SENSE BECAUSE WHEN YOU SAY A METHODOLOGY, IT SEEMS LIKE THEY'RE JUST HAVE THEIR OWN POINTS OUT THERE AND I CAN HAVE A ISSUE WITH THAT.
ALL THE OBSERVATIONS THAT YOU HAD WERE BASICALLY LOW RISK WITH THAT.
UPDATING THE TEMPLATE, WHAT EXACTLY WOULD THAT LOOK LIKE? VENDORS ARE REQUIRED TO SUBMIT THREE THINGS.
ONE OF THEM IS, I THINK IT'S FORM 1A, WHERE THEY HAVE TO PUT THEIR PRICING ON IT.
WHEN WE REVIEWED THE BID DOCUMENTS, THERE SEEMED TO BE SOME CONFUSION WITH THE BASE PRICE VERSUS THE CONTINGENCY PRICE.
WE WOULD SAY, YOU'RE REQUIRED TO HAVE A FIVE PERCENT CONTINGENCY, BUT THERE WOULD JUST BE CONFUSION ON THAT AND I THINK IF IT WERE MORE OF, AGAIN, A FILLABLE FORM OR THEY ONLY HAVE OPTIONS THEN THEY CAN MAYBE COMPLETE THAT A LITTLE MORE CLEAR, BECAUSE WE SAW ACROSS THE BOARD WHERE THEY WOULD MAYBE JUST EVEN NOT PUT IN FIVE PERCENT CONTINGENCY AND JUST PUT IN A STRAIGHT AMOUNT OF $75,000 OR SOMETHING LIKE THAT.
IT WOULD JUST MAKE THOSE FORMS A LITTLE BIT MORE CONSISTENT.
DID YOU SEE A LOT OF THAT, HOW MANY DID YOU TEST? LET ME JUST REMEMBER.
I BELIEVE WE TESTED SIX PROJECTS AND IT LOOKS LIKE THERE WERE THREE THAT CONTAINED INACCURACIES WITHIN THE PRICING PORTION, AND THEN TWO PROJECTS CONTAIN THE PROPOSALS WHERE THE AMOUNTS WERE CALCULATED INCORRECTLY.
IS THERE A PROCESS CURRENTLY IN PROCUREMENT TO GO BACK TO THE VENDOR REGARDING ANY MISUNDERSTANDING OF WHAT THERE BE IT WAS? YES, MA'AM, I BELIEVE SO.
THERE IS SOMETHING IN PLACE THAT ALREADY ADDRESSES THAT.
SURE. I THINK THIS WOULD JUST MAYBE STREAMLINE IT, MAKE IT A LITTLE BIT MORE EFFICIENT.
JUST CLEAR IT UP FROM THE GET-GO SO THAT THEY'RE NOT HAVING TO CALL UP AND SAY, HEY, WHAT'S GOING ON? YOU DO KNOW THAT THERE'S ALWAYS GOING TO BE CONFUSION AND CAN BE.
I WAS TRYING TO MAKE IT AS EASY AS POSSIBLE.
DO YOU KNOW HOW MANY CSP BIDS WE DO ON A YEARLY BASIS? I'VE HEARD THAT NUMBER, BUT I WOULD NOT WANT TO BE SURE AND I DON'T KNOW THERE ARE BRANDS HERE.
[01:15:05]
THE REASON I ASKED THAT QUESTION IS THAT YOU TESTED SIX AND YOU FOUND THREE, THAT MIGHT HAVE SOME ISSUES.IT WOULD BE GOOD FOR ME TO UNDERSTAND EXACTLY HOW MANY ACTUALLY CSP BIDS WE ACTUALLY HAVE TO GO OUT.
THE LAST QUESTION I HAVE IN REGARDS TO THIS WHOLE CSPS IS, WAS THERE AN OPPORTUNITY TO GARNER SOME UNDERSTANDING FROM THE CONTRACTORS SPECIFICALLY WHAT THEY THOUGHT WERE PROBLEMS? WE DID NOT COVER THAT IN THE SCOPE OF OUR AUDIT.
IT'S SOMEWHERE. YOU SHOULD GOOGLE THAT, THAT IS A SITUATION THAT SHOULD BE UNDERSTOOD BECAUSE SOMETIMES WE CAN SEE ONE THING, BUT IT MIGHT BE SOMETHING DIFFERENT.
ARE THERE ANY ADDITIONAL QUESTIONS? TAKE YOUR LIGHT OFF. THEY'RE TELLING ME YOUR LIGHT'S OFF.
IT'S BEEN MOVED AND SECONDED TO ACCEPT THIS REPORT.
WE'VE HAD THE DISCUSSION ON CSP.
ALL THOSE IN FAVOR, PLEASE CAST YOUR VOTE.
>> YOU HAVE JUST ADOPTED THE MOTION TO ACCEPT AND MAKE FINAL INTERNAL AUDIT REPORT, BOND-FUNDED PROJECTS, COMPETITIVE SEALED BID PROPOSALS, AUDIT REPORT, 23-AUD-005-01.
CONSIDER INTAKE POSSIBLE ACTION TO ACCEPT A MAKEFILE INTERNAL AUDIT REPORT, ATTENDANCE FOR CREDIT AUDIT REPORT 23-AUD-013.
DO I HAVE A MOTION TO ACCEPT AND MAKE FINAL INTERNAL AUDIT REPORT ATTENDANCE FOR CREDIT AUDIT REPORT 23AUD-013?
>> IT HAS BEEN MOVED BY TRUSTEE FLORES AND SECONDED BY TRUSTEE [INAUDIBLE] THAT WE ACCEPT AND MAKE FINAL INTERNAL AUDIT REPORT ATTENDANCE FOR CREDIT AUDIT REPORT 23-AUD-013.
>> YES. IN THIS REPORT, OBVIOUSLY, WE LOOKED AT PROCESSES SURROUNDING THE ATTENDANCE FOR CREDIT PROGRAMS MANAGED BY THE GRAD DEPARTMENT BUT ADMINISTERED BY THE ATTENDANCE COMMITTEES FORMED AT THE CAMPUSES.
I'M ACTUALLY GOING TO LET ONE OF OUR SENIOR AUDITORS, SAM WILSON, PROVIDE YOU GUYS WITH THE DETAILS ON THE OBSERVATIONS.
>> GOOD AFTERNOON, CHAIR FORMAN TRUSTEES.
ATTEMPTS FOR CREDIT AS A STATE-REQUIRED PROGRAM THAT ALLOWS ELIGIBLE STUDENTS TO RESTORE CREDIT OR FINAL GRADES LOST TO EXCESSIVE ABSENCES.
THE PROGRAM IS MANAGED BY THE GRADUATION, RECOVERY, ATTENDANCE ADVOCACY, AND DROPOUT INTERVENTION DEPARTMENT OR GRAD, AND ADMINISTERED THROUGH ATTENDANCE COMMITTEES FORMED AT EACH CAMPUS.
GRAD ALONG WITH ENTERPRISE APPLICATIONS DEVELOPED THE AFC INTERFACE SYSTEM DURING THE SUMMER OF 2021 TO AUTOMATE PROCESSES [INAUDIBLE] FOR CREDIT PROGRAM ACTIVITY.
OUR SCHOOL THE DISTRICT STUDENT INFORMATION SYSTEM INTERFACES WITH THE AFC INTERFACE SYSTEM AND PROVIDES THE NECESSARY DATA FOR ANY STUDENT WHO FALLS BELOW THE 90 PERCENT ATTENDANCE FOR A COURSE.
AS A RESULT OF OUR AUDIT, WE CAME TO THE FOLLOWING RECOMMENDATIONS.
INCREASED UTILIZATION OF THE ESTABLISHED AFC INTERFACE SYSTEM SHOULD ENHANCE THE DISTRICT'S ABILITY TO MANAGE, TRACK, AND MONITOR THE PROGRAM.
FURTHER ENHANCING THE INTERFACE BETWEEN POWERSCHOOL AND THE AFC INTERFACE SYSTEM COULD ASSIST THE DISTRICTS IN MORE EFFECTIVELY VERIFYING THE ACCURACY OF RESTORED CREDIT.
A METHODOLOGY FOR DEVELOPING CONTENT FOR SEAT TIME ASSIGNMENTS SHOULD BE ESTABLISHED AS A FOLLOW-UP NOTE TO THAT.
GRAD IS CURRENTLY WORKING WITH TEACHING AND LEARNING TO DEVELOP THIS CONTENT.
I'M AVAILABLE FOR ANY QUESTIONS.
>> TRUSTEES, ARE THERE ANY QUESTIONS? TRUSTEE WHITE, DID I SEE YOU MOVING?
>> YOU ACTUALLY DID. WHEN I WAS READING OVER THIS, I WAS TRYING TO UNDERSTAND HOW THIS WAS BEING ALLOWED TO SLIP THROUGH THE CRACKS BASICALLY.
WHEN YOU DID YOUR INVESTIGATION,
[01:20:01]
DID YOU DETERMINE HOW THIS WAS HAPPENING? I KNOW THAT BASICALLY EVERYTHING IS GOING TO START AT THE CAMPUS BECAUSE THAT'S WHERE THEIR TENDENCY IS.>> WHEN WE REQUESTED THE DOCUMENTATION FOR THE STUDENTS THAT WE FOUND FOR OUR SAMPLE, MULTIPLE INSTANCES OF NO DOCUMENTATION WERE FOUND.
THAT WAS LARGELY ATTRIBUTED TO CHANGE IN COMMAND, CHANGE IN RESPONSIBILITIES AT THE CAMPUS LEVEL.
THERE IS AN ATTENDANCE COMMITTEE CHAIR WHO IS RESPONSIBLE FOR ADMINISTERING THE PROGRAM FOR THAT PARTICULAR CAMPUS.
IN SEVERAL OF THE SCHOOLS THAT WE TESTED, THAT PARTICULAR CHAIR HAD BEEN VACATED AND REPLACED WITHIN THE PAST YEAR OR TWO.
THERE SEEMS TO BE AN ISSUE WITH RETAINING PROPER DOCUMENTATION FOR THE STUDENTS GOING THROUGH THE PROGRAM.
>> I KNOW YOU MAY NOT BE ABLE TO ASK THIS QUESTION, BUT IT JUST POPPED INTO MY MIND.
AS FAR AS SOMEONE REPLACING SOMEONE ELSE, IS THERE A SPECIAL CLASS THAT THEY CAN GO TO FOR TRAINING TO KNOW ALL OF THEIR ROLES AND RESPONSIBILITIES AS THE ATTENDANCE COMMITTEE CHAIR?
>> I'D PROBABLY PREFER [LAUGHTER] A DIVERGENT.
>> HI, TRUSTEE WHITE. THANK YOU FOR YOUR QUESTION.
I ACTUALLY HAVE VINSON REYES AND JACQUI MCFARLAND WHO OVERSEES OUR TINTS FOR CREDIT.
SHE CAN TELL YOU JUST A LITTLE BIT ABOUT THE TRAINING THAT WE OFFER TO OUR TEACHERS.
>> GOOD AFTERNOON. THE GRAD DEPARTMENT PROVIDES ONGOING TRAINING TO OUR ATTENDANCE COMMITTEES THROUGHOUT THE YEAR.
WE HAVE AN INITIAL TRAINING AT THE BEGINNING OF THE YEAR, BUT WE HAVE ONGOING TRAINING BY REQUEST THROUGHOUT THE YEAR.
WE ARE TRAINING OUR ATTENDANCE COMMITTEE MEMBERS AS WELL AS THE CHAIR ON THE PROPER DOCUMENTATION THAT SHOULD BE RETAINED FOR THREE YEARS.
>> ONCE THEY HAVE COMPLETED THE ATTENDANCE INFORMATION ON EACH STUDENT, WHERE DOES THAT GO BACK TO? WHO GETS IT FROM THERE?
>> I GUESS THIS QUESTION IS TO THE AUDIT COMMITTEE, BECAUSE CORRECT ME IF I'M WRONG, YOU ARE LOOKING TO PUT A NEW SYSTEM IN PLACE. IS THAT RIGHT?
>> NOT NECESSARILY. THEY'VE DEVELOPED A SYSTEM WITH ENTERPRISE APPLICATIONS THAT SHOULD HOUSE ALL OF THAT DOCUMENTATION AND THAT PROCESS MOVING FORWARD.
THERE WERE SOME HICCUPS IN THE EARLY IMPLEMENTATION OF THAT.
THIS YEAR, THEY STARTED OUT, I BELIEVE, WITH TRAINING DISTRICT-WIDE TO ENSURE THAT ALL OF THE CAMPUSES, ALL OF THE SECONDARY CAMPUSES THAT IS ARE ALL ON IT.
I BELIEVE THERE'S A ROLL-OUT TO THE ELEMENTARY SCHOOLS FORTHCOMING.
>> I KNOW WE'RE UPDATING SOME OF OUR SYSTEMS, AND I KNOW SOME OF THEM ARE STILL HARD COPY AND WE'RE TRYING TO MOVE TO SOFT COPY.
IS THAT THE CASE WITH THIS ALSO [INAUDIBLE]? [OVERLAPPING]
>> NO PROBLEM. YES, THAT IS THE CASE.
WE'VE AUTOMATED THE SYSTEM FOR HIGH SCHOOL.
THERE IS A ROLL-OUT PLAN FOR MIDDLE SCHOOL AND ELEMENTARY, AND WE ALSO HAVE INCLUDED OUR OWN INTERNAL AUDITS THAT WE'RE DOING WITH OUR EXECUTIVE DIRECTORS AT THIS TIME IN THE DEPARTMENT.
>> THANK YOU, TRUSTEE [INAUDIBLE].
IN ONE OF THESE OBSERVATIONS AND RECOMMENDATIONS, IT SAYS THAT OUT OF THE SIX CAMPUSES SELECTED [NOISE], ONE DID NOT RESPOND.
I'M LIKE "REALLY?" THAT'S MORE OF A MANAGEMENT ISSUE.
I THINK THAT YOU DON'T HAVE THE AUDITORS ASK FOR STUFF AND SOMEBODY DOESN'T EVEN RESPOND.
I JUST WANTED TO HIGHLIGHT THAT IN THIS BECAUSE THAT TO ME SEEMS FAIRLY UNACCEPTABLE.
BUT, IT COULD BE A CHANGE IN LEADERSHIP ON THE CAMPUS, SOMETHING HAPPENED.
[01:25:02]
ALL SORTS OF STUFF CAN HAPPEN WITH 230 CAMPUSES.BUT THAT POPPED OUT WHEN I READ THIS REPORT. THANK YOU.
>> ANY ADDITIONAL QUESTIONS? ALL THOSE IN FAVOR? ALL THOSE OPPOSE.
>> YOU HAVE JUST ADOPTED THE MOTION TO ACCEPT AND MAKE FINAL INTERNAL AUDIT ATTENDANCE FOR CREDIT AUDIT REPORT 23-AUD-013.
WE'RE ARE NOW ON 7.5, CONSIDERING TAKE POSSIBLE ACTION TO ACCEPT AND MAKE FINAL INTERNAL AUDIT REPORT, CONTINUOUS MONITORING ASOR FUNDING AUDIT REPORT 23-AUD-008.
DO I HAVE A MOTION TO ACCEPT AND MAKE FILE INTERNAL AUDIT REPORT, CONTINUOUS MONITORING AS THEIR FUNDING AT IT REPORT 23-AUD-008?
>> IT HAS BEEN MOVED BY TRUSTEE FLORES AND SECONDED BY TRUSTEE [INAUDIBLE] THAT WE ACCEPT THE MAKE FILE INTERNAL AUDIT REPORT, CONTINUOUS MONITORING ASOR FUNDING AUDIT REPORT 23-AUD-008. DISCUSSION.
>> GOOD AFTERNOON. ANN EVAN DEPUTY CHIEF INTERNAL AUDIT.
YES, WE'VE COMPLETED THE SR FUNDING AUDIT REPORT.
THIS IS VERY IMPORTANT BECAUSE THE DISTRICT IS EXPECTING TO RECEIVE MORE THAN 700 MILLION OF SR REIMBURSEMENTS, AND AS SUCH, IS IT IMPORTANT THAT WE HAVE ADEQUATE CONTROLS IN PLACE TO ENSURE SPENDING IS IN LINE WITH DISTRICT INITIATIVES AND GRANT REQUIREMENTS.
THIS AUDIT IS CONDUCTED ON A CONTINUOUS BASIS THROUGHOUT THE PERIOD OF THE GRANT AND THIS REPORT IS FOR TRANSACTIONS THAT WE TESTED FROM THE MARCH 22 THROUGH JULY 22 REIMBURSEMENTS FOR SR2, AND THE APRIL 2021 THROUGH SEPTEMBER 2022 REIMBURSEMENTS FOR SR3.
NO RECOMMENDATIONS WERE MADE FOR THE PERIOD TESTED AND WE ARE CONTINUING TO MONITOR EXPENDITURES UNTIL THE END OF THE TERMS. THANK YOU.
>> TRUSTEES, ARE THERE ANY QUESTIONS?
[LAUGHTER] THERE ARE SOME FOLKS DOING GOOD JOB.
JUST THOUGHT I'D POINT THAT OUT. THANK YOU.
>> ANY ADDITIONAL QUESTIONS? I HAVE JUST A COUPLE OF QUESTIONS.
IT FOCUSED ON ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FOR THE SR FUNDS, THIS IS SR2 AND SR3 GRANT FUNDS.
HAVE WE RECEIVED ALL OF THE SR3 GRANT FUNDS?
>> I WILL DEFER TO MANAGEMENT ADMINISTRATION.
>> SHE'S COMING. YOU ARE GOING TO LET HER COME?
THE SR DOLLARS ARE PROVIDED ON A REIMBURSEMENT BASIS.
WE HAVE RECEIVED OUR ALLOCATION, WHICH IS OUR NOTICE THAT TELLS US HOW MUCH WE ARE ELIGIBLE FOR, BUT ACTUALLY RECEIVING ALL OF OUR SR DOLLARS IN OUR COFFERS, NO, WE HAVE NOT.
>> I UNDERSTAND SR1, WE ACTUALLY DIDN'T GET ANY DOLLARS, IS THAT CORRECT?
>> WE DID RECEIVE AN ALLOCATION FROM THE FEDERAL GOVERNMENT FOR SR1, HOWEVER, IT WAS MORE OF A SUPPLANTING ALLOCATION, MEANING THEY REDUCED OUR STATE AID AND THE AMOUNT OF FEDERAL DOLLARS THAT WE RECEIVED.
>> SR2, HAVE WE RECEIVED ALL OF OUR ALLOCATED DOLLARS FOR SR2?
>> AS OF TODAY WE HAVE NOT RECEIVED ALL OF OUR DOLLARS FOR SR2.
>> SAME RESPONSE, WE HAVE NOT RECEIVED ALL OF OUR DOLLARS FOR SR3.
>> THE REASON I'M ASKING THAT QUESTION IS THAT THIS SEEMS MORE OF A CURSORY BECAUSE IT HAS TO BE CONTINUOUS MONITORING BECAUSE THE FUNDING HASN'T COME IN YET.
I'M I READING THAT CORRECTLY OR MAYBE YOU CAN HELP ME.
>> AS WE USE THE FUNDS, AS WE EXPAND THOSE DOLLARS WHEN WE CREATE EXPENSES, WE SUBMIT EXPENDITURE REPORTS TO THE STATE AND WE GET REIMBURSED FOR THOSE EXPENDITURES.
YES, EXPENDITURES ARE STILL HAPPENING, THOSE EXPENSES ARE STILL ONGOING.
WE ARE STILL CONDUCTING SR ALLOWABLE ACTIVITIES.
AS SUCH, WE WILL CONTINUE TO RECEIVE REIMBURSEMENTS FOR THOSE ALLOWABLE ACTIVITIES.
[01:30:05]
>> TO THE INTERNAL AUDIT OFFICE.
>> YES, MA'AM. THAT'S WHY WE CONTINUE TO MONITOR THIS HIGH-RISK AREAS.
WE DON'T WANT TO WAIT 1, 2, 3 YEARS AND THEN TRY TO GO BACK AND SAY, WE THINK WE MIGHT HAD A MISTAKE OR SOMETHING.
>> FOR THE SR FUNDS, WHICH ARE LARGE DOLLARS THAT ARE COMING IN, ARE WE GOING TO LOOK AT THAT ON A YEARLY BASIS OR ARE WE LOOKING AT IT THE NEXT TWO YEARS? BECAUSE BY THEN IT SEEMS LIKE WE SHOULD HAVE THE MAJORITY OF OUR FUNDING.
>> I THINK I HEARD INTERNAL AUDIT SAY WE'RE GOING TO BE LOOKING AT IT ON AN ONGOING BASIS.
>> BUT ONGOING CAN MEAN SEVERAL THINGS.
I'M TRYING TO MAKE SURE THAT I HAVE CLARITY ON IT'S GOING TO BE LOOKED AT ON A YEARLY BASIS BECAUSE OF THE NUMBER OF FUNDS AND THE COMPLEXITY OF MAKING SURE THAT THOSE PROGRAMS ARE RIGHT. THAT'S WHAT I'M TRYING TO DO.
>> I BELIEVE THE PROGRAM FUNDING ENDS THIS SUMMER. IT'S 23 OR 24.
>> SR2 ENDS IN 2023 AND THEN SR3 ENDS THE FOLLOWING YEAR.
BUT IT WILL AT MINIMUM TRUSTEE FORM AND BE LOOKED AT ON AN ANNUAL BASIS BECAUSE AS YOU SAW WITH OUR EXTERNAL AUDITORS, THEY EVALUATED THE SR PROGRAMS THAT WAS A PART OF OUR ANNUAL REPORTING THIS YEAR.
THEN OF COURSE, INTERNAL AUDIT HAS JUST SHARED A REPORT OF SR DOLLARS THROUGH FROM WHAT TIME PERIOD DID YOU SAY? MARCH THROUGH JULY?`
>> YES, FROM MARCH 2022 THROUGH JULY 2022, THAT WAS FOR SR2.
FOR SR3 FROM APRIL 2021 THROUGH SEPTEMBER 2022.
>> I'M STILL CONFUSED IN TERMS WHEN WE RECEIVE THE SR DOLLARS AND THE MONITORING PROCESS.
IF WE HAVEN'T RECEIVED SR3 SOMEBODY HELP ME. I'M CONFUSED.
>> IF I CAN JUMP IN HERE. WE'RE HAVING EXPENDITURES ON SR2 AND 3 AS WE AS WE PROGRESS.
TAMIKA IS CORRECT ON THE TIME FRAME.
ONCE WE SUBMIT A CLAIM AND WE THEN GET REIMBURSEMENT, THAT THEN IT GOES TO INTERNAL AUDIT FOR THEM TO REVIEW IN THE NEXT SERIES OF THEIR EVENTS.
AS WE SEND IN A CLAIM, THEY GET THAT AND THEN THEY REVIEW THAT FOR ACCURACY.
>> I THINK THAT MIGHT BE THE LANGUAGE YOU NEED TO USE AS A CLAIM COMES, THEN YOU WILL REVIEW THAT CLAIM.
>> FOR ME TO BE ABLE TO UNDERSTAND EXACTLY HOW WE'RE LOOKING AT THESE DOLLARS.
I DO UNDERSTAND THAT THE OUTSIDE AUDITOR HAS LOOKED AT IT, BUT WHEN YOU'RE TALKING ABOUT THIS AMOUNT OF DOLLARS AND IT'S BASICALLY LIKE A GRANT FUND, I THINK DIFFERENT SETS OF EYES ON IT WOULD MAKE ALL THE DIFFERENCE IN THE WORLD.
I JUST LIKE TO SAY THAT. CHRIS, YOU HAVE SOMETHING?
>> YEAH, I HAVE A COUPLE OF QUESTIONS.
ONE, IF I HEARD THAT RIGHT, THE REVIEW IS HAPPENING AFTER WE'VE ALREADY RECEIVED THE REIMBURSEMENT OR ARE WE REVIEWING THOSE EXPENDITURE REPORTS FOR A LIABILITY BEFORE WE SUBMIT FOR REIMBURSEMENT?
>> YEAH. THAT'S TWO SEPARATE THINGS.
BEFORE THE EXPENDITURE REPORT IS SUBMITTED FOR REIMBURSEMENT, THERE IS A REVIEW PROCESS TO ENSURE THAT WE ARE REQUESTING THE APPROPRIATE AMOUNT OF FUNDS TO BE REIMBURSED FOR.
WHAT THEY ARE LOOKING AT IS AFTER WE'VE RECEIVED THOSE REIMBURSEMENTS THAT HAVE ALREADY BEEN VERIFIED AND CONFIRM TO BE VALID THROUGH OUR PROCESS AND THE TEA'S PROCESS.
>> YOU SAY AT LEAST ANNUALLY THE REVIEW, SO AS A PART OF THE SINGLE AUDIT, AS PART OF THE FINANCIAL STATEMENTS, I UNDERSTAND THAT THEY IDENTIFY THE MAJOR PROGRAMS AND REVIEW.
ARE THEY COMMITTED TO CONTINUING TO INCLUDE SR AS FAR AS THEIR MAJOR PROGRAMS OR DO THEY HAVE THE DISCRETION TO SELECT OTHER PROGRAMS WHO WOULD VIEW THAT DOES NOT INCLUDE SR?
>> FOR THIS YEAR, GIVEN THE AMOUNT OF AWARD THAT WE HAVE RECEIVED AND THE LIGHT THAT HAS BEEN SHINED ON THE SR PROGRAM, I WOULD ASSUME AT THIS TIME THAT THAT WILL CONTINUE TO BE A MAJOR PROGRAM.
I DID NOT ASK THAT QUESTION WHEN THEY WERE HERE EARLIER, BUT I COULD DEFINITELY FIND OUT.
>> NOW, I GOT A QUESTION [LAUGHTER] WHAT INTERNAL AUDIT EVEN EVER FIND ANYTHING? IF YOU'RE REVIEWING IT AFTER WE'VE ALREADY GOTTEN THE MONEY, WHY WOULD THEY EVER FIND ANYTHING?
[01:35:02]
>> WELL, IT JUST DEPENDS ON WHAT INTERNAL AUDITS FOCUSES ON.
BUT IF WE ARE DOING THE GOOD JOB THAT WE'VE PROVEN TO BE DOING, THERE SHOULD NOT BE.
SOMETHING TO FIND DEPENDS ON WHAT YOU DEFINE AS FIND.
AGAIN, THERE ARE ALWAYS OPPORTUNITIES FOR IMPROVEMENT.
WITH THAT BEING SAID, THERE'S NO 100% GUARANTEE ON ANYTHING.
IT DEPENDS ON IT LIKE I SAID, THE SAMPLING THAT THEY ARE USING AT THAT TIME, THERE ARE OPPORTUNITIES TO IMPROVE ANY PROCESS IS WHAT I WOULD SAY.
>> WHY WOULDN'T THEY REVIEW IT BEFORE YOU SUBMITTED IT?
>> BECAUSE WE REVIEW IT BEFORE WE SUBMIT IT.
>> THEY DON'T REVIEW IT BEFORE.
>> BUT YOU'RE PREPARING IT, AND YOU'RE DOING A SELF-REVIEW?
>> I HOPE I DON'T FIND ANYTHING.
BUT IF I DO, WE'RE GOING TO LOOK AT SUPPORT BACKUP IF THEY'VE CLASSIFIED IT AND SAID IT'S ONE CATEGORY AND SHOULD BE ANOTHER IN OUR OPINION, WE WOULD DISCUSS THAT WITH THEM.
HOPEFULLY, IF WE MAKE A MISTAKE WILL IT CORRECT IT IN A TIMELY MANNER, THAT'S THE OVERALL GOAL.
>> IF I CAN JUMP IN HERE, SO ALL FEDERAL PROGRAMS ARE OPERATING IN THE SAME FASHION.
THIS JUST HAPPENS TO BE AS A RESULT.
TITLE 1, ANY IDEA, ANY OF THOSE ARE THE SAME.
WE INTERNALLY REVIEW WHAT WE'RE SUBMITTING TO MAKE SURE IT'S ACCURATE BEFORE WE EVEN ISSUE PURCHASE ORDERS ACTUALLY TO MAKE SURE IT'S COMPLIANT.
WE GO THROUGH ALL THAT INFORMATION TO DO OUR DUE DILIGENCE INTERNALLY AS ADMINISTRATION, WHAT THEY'RE DOING IS FOLLOWING UP TO MAKE SURE THEY'RE IN AGREEMENT WITH THAT.
JUST FOR A DOUBLE-CHECK AND SPECIFICALLY WITH SR BECAUSE IT DOES HAVE SO MUCH OF ATTENTION TO IT, WE WANT TO BE DOUBLY SURE THAT THAT HAS HAPPENED.
>> IN THE BEGINNING, THE RULES WERE PRETTY FLUID OR NOT VERY CLEAR.
THEY SAID YOU COULD USE FOR CERTAIN THINGS AND THAT WAS AN EVOLVING, THAT'S WHERE WE GOT THE VERY BEGINNING, GOT INVOLVED TO SO WE WERE DOUBLY SURE.
IT'S A LOT OF MONEY FOR THE SCHOOL DISTRICT WE GOT TO BE VERY CAREFUL WITH IT.
>> ANY ADDITIONAL COMMENTS FROM THE TRUSTEES?
>> YES, THAT'S JUST THE COURSE.
>> THANK YOU, JESSIE FORMAN. I WOULD JUST ADD THAT, YOU KNOW, AS AN AUDIT COMMITTEE MEMBER A COUPLE OF YEARS AGO, ANYTIME THERE'S A BIG DOLLAR ITEM LIKE THIS, AND YOU ASKED ME THE QUESTION, WHAT SHOULD WE BE LOOKING AT? YOU KNOW THAT I ALWAYS SAY E-RATE [LAUGHTER] CONSTRUCTION, ESPECIALLY BOND CONSTRUCTION.
THEN THIS WOULD BE, AGAIN, BIG BUCKET, LOTS OF ATTENTION, SO I WOULD CERTAINLY BE IN FAVOR OF BEING INCLUDED IN THE AUDIT PLAN.
I DIDN'T NOTICE THAT YOU'VE ALREADY SPENT 220 OUT OF YOUR 500 ALLOTTED HOURS OR SO ON THIS SO IT LOOKS LIKE IN YOUR AUDIT PLAN YOU'RE WORKING AND THEN I APPRECIATE THAT AND THAT IT'S CONTINUOUS EVERY TIME WE SEND SOMETHING AND YOU GUYS CHECK IT IS A GOOD IDEA. THANK YOU.
>> NO ADDITIONAL DISCUSSION. ARE ALL THOSE IN FAVOR?
>> BUT DR. ELIZADE HAS HER HAND UP.
>> SOMETIMES WE FORGET, THIS IS A TRIPLE CHECK AS A MATTER OF FACT, BECAUSE FIRST, TEA HAD TO APPROVE A PLAN.
WE HAVE TO SUBMIT PLANS IN ADVANCE, THEY'RE ABLE TO BE REVIEWED, THEN WE ALIGN THAT WITH THE PLAN AND, AGAIN, GET REIMBURSED BECAUSE WE'RE STILL SPENDING THIS ON OUR OWN AND THEN RECEIVING THOSE FUNDS.
AS YOU MENTIONED, TRUSTEE FORMAN, IT IS GOING TO BE AN ONGOING.
WE'RE GETTING REIMBURSED THEN WE SPEND SOME MORE WE GET REIMBURSED.
IT IS GOING TO TAKE A LOT AMOUNT OF TIME, BUT BECAUSE OF THE DOLLAR AMOUNTS, BECAUSE OF PEOPLE'S CONCERN WITH HOW THESE DOLLARS ARE SPENT, THERE'S A TEA CHECK, A VERIFICATION IF YOU WILL, THERE'S AN INTERNAL DEPARTMENT CHECK, AND THEN WE HAVE THE INTERNAL AUDITORS WHO REPORT DIRECTLY TO OUR BOARD OF TRUSTEES.
WE'RE GOING TO CONTINUE TO PROVIDE A QUARTERLY UPDATE IN YOUR BOARD UPDATE, TRUSTEE FORMAN, AS MANY TRUSTEES HAVE REQUESTED SO YOU CAN SEE THE ONGOING DOLLAR AMOUNTS.
THANK YOU ALL SO MUCH BECAUSE THIS IS AN ITEM THAT I KNOW THE PUBLIC IS REALLY WANTING TO ENSURE THAT THOSE DOLLARS ARE GOING WHERE THEY WERE INTENDED TO GO.
>> THANK YOU, SUPERINTENDENT ELIZADE.
ANY ADDITIONAL QUESTIONS FROM TRUSTEES? ALL THOSE IN FAVOR, PLEASE CAST YOUR VOTES BY RAISING YOUR HAND.
[01:40:03]
>> YOU HAVE JUST ADOPTED THE MOTION TO ACCEPT AND MAKE FINAL INTERNAL AUDIT REPORT CONTINUOUS MONITORING AS A FUNDING AUDIT REPORT 23 AUD-008.
CONSIDER INTAKE POSSIBLE ACTION TO ACCEPT THAT MAKE FINAL INTERNAL AUDIT REPORT ACTIVITY FUNDS, HARRY STONE MONTESSORI AUDIT REPORT 23-CON-002, DO I HAVE A MOTION TO ACCEPT AND MAKE FINAL INTERNAL ACTIVITY FUND HARRY STONE, 23-CON-002?
>> IT HAS BEEN MOVED BY TRUSTEE FLORES AND SECONDED BY TRUSTEE CARRYON THAT WE ACCEPT AND MAKE FINAL INTERNAL AUDIT REPORT ACTIVITIES FUND.
HARRY STONE MONTESSORI AUDIT REPORT 23-CON-002.
I'LL REPORT ON THE MONTESSORI ACADEMY ACTIVITY FUND AUDIT.
WE WERE REQUESTED TO CONDUCT AN ACTIVITY FUNDS AUDIT FOR HARRY STONE MONTESSORI ACADEMY TO DETERMINE THE EFFECTIVENESS OF INTERNAL CONTROLS AND ALSO TO DETERMINE IF THE CAMPUS WAS ALSO IN COMPLIANCE WITH THE ACTIVITY FUNDS MANUAL AND ALSO WITH THE DISTRICT POLICIES AND PROCEDURES.
THERE WERE INSTANCES OF NONCOMPLIANCE WITH ACTIVITY FUNDS POLICIES AND PROCEDURES.
THEY WERE IDENTIFIED AS THE FOLLOWING.
NUMBER 1, COMPLIANCE TRAINING, NUMBER 2, ACTIVITY FUNDS RECEIPTS, NUMBER 3, FUNDRAISER DOCUMENTATION, AND LASTLY, DONATION DOCUMENTATION.
WE RECOMMENDED THE PRINCIPAL CONTINUE TO MONITOR THE ACTIVITY FUNDS ACTIVITIES TO ENSURE COMPLIANCE AND ALSO OBTAIN IN-DEPTH TRAINING TO HAVE A BETTER UNDERSTANDING OF THE ACTIVITY FUNDS PROCEDURES.
DOES ANYONE HAVE ANY QUESTIONS?
>> I UNDERSTAND THAT THE PRINCIPAL ACTUALLY ASKED FOR THIS AUDIT.
MY QUESTION IS, I'M WONDERING IF THIS IS GOING ON AT OTHER CAMPUSES, WHICH I'M QUITE SURE IT IS.
BUT I KNOW THERE'S A TRAINING MANUAL.
IS THERE A PLACE WHERE THEY CAN ACTUALLY GO FOR TRAINING AND THAT'S WHEN THEY GET THEIR MANUAL OR HOW'S IT DONE? YES.
WHEN IT COMES TO CAMPUS ACTIVITIES, AS FAR AS, THEY MAY HAVE A DAY WHERE THEY ALLOW KIDS TO PLAY, TO WEAR JEANS OR SOMETHING LIKE THAT, WHAT ACCOUNT IS THAT MONEY PLACED IN AS FAR AS CAMPUS FUNDING IS CONCERNED? LET ME ANSWER. IT'S A TRUSTEE, WHY THOSE INDIVIDUAL ACCOUNTS? IT WOULD BE SPECIFIC NAME AND ACCOUNT AT EACH SCHOOL FOR BAND FUNDRAISER.
I THINK A LOT OF OUR ISSUES THAT COME UP IS THE RECEIPTING OF THOSE MONIES, THE TIMELY DEPOSIT OF THOSE MONIES, AND EVERYBODY UNDERSTANDING HAS TO BE DONE IN A VERY TIMELY MANNER.
THERE IS AN OVERSIGHT GROUP FIRST AND DON'T ASK ME THAT ACRONYM, FINANCIAL ACCOUNTING.THAT HELPS EACH AND EVERY SCHOOL IN THIS AREA IS A LOT OF WORK.
WE DO FIND THESE INSTANCES OF NON-COMPLIANCE BECAUSE NOT A HIGH DOLLAR AMOUNT OF MONEY THAT GOES THROUGH IT.
COULD BE A HIGH-VOLUME OF SMALL DOLLARS, BUT IT JUST HAS TO BE DONE IN VERY TIMELY MANNER.
IT'S PROCESSED, ACCOUNTED FOR, AND THOSE FUNDS ARE PROTECTED.
IS THIS INFORMATION ONCE SIGNED THE BAND DIRECTOR DECIDES TO DO A FUNDRAISER AND THEY DO A CATALOG SALE.
ONCE THE FUNDS ARE COLLECTED, IS IT TURNED OVER TO THE OFFICE MANAGER OR WHO HANDLES THAT? GOOD AFTERNOON. MY NAME IS [INAUDIBLE] ALONSO, INTERNAL AUDIT.
THE FUNDS ARE COLLECTED BY THE SPONSOR FOR THAT ACTIVITY AND THEY'RE TURNED INTO THE FINANCIAL CLERK AT THE CAMPUS.
AT THAT MOMENT, THE SPONSOR RECEIVES A RECEIPT FOR THE MONIES TURNED IN, AND THE FINANCIAL CLERK AND THE SPONSOR BOTH SIGN THE RECEIPT.
WHEN THIS PERSON RECEIVES THE DOCUMENTS, OF COURSE, IF IT'S CASH CHECKS, WHATEVER YOU HAVE, YOU MAKE A RECORD OF WHAT YOU RECEIVED.
[01:45:02]
IF I'M THE BAND TEACHER, I'M GONNA MAKE A RECORD OF WHAT I'M TURNING IN CASH-WISE.ONCE THAT HAPPENS AND IT GOES OVER TO THE OFFICE MANAGER, HOW MANY DAYS DO THEY HAVE IN ORDER TO GET THIS OFF THE CAMPUS? IT IS IN A TIMELY MANNER, BUT BECAUSE OF OUR COURIER SERVICES, IT IS DIFFERENT FOR EACH CAMPUS.
IT'S A MATTER OF WHEN THAT COURIER SERVICES SCHEDULE TO PICK UP.
IF THE BAND DIRECTOR COULD THEY COLLECT MONEY FOR A TWO-WEEK PERIOD BEFORE THEY TURN IT IN OR DO THEY HAVE 48 HOURS? THEY HAVE TO TURN IT IN WITHIN THAT DAY THAT WAS COLLECTED.
ANY MORE QUESTIONS? I HAVE JUST A FEW QUESTIONS.
THE FIRST QUESTION IS, WHEN IS THE LAST TIME WE ACTUALLY REVIEWED THE PROCESS ON CAMPUS TO MAKE SURE IT WAS ADEQUATE? FOR OUR CAMPUS OR ALL CAMPUSES? ALL CAMPUSES BECAUSE THERE'S SOME STRUGGLING OR AS WE KNOW WITH THIS WHOLE PROCESS AND THEN THERE HAVE BEEN ADDITIONAL THINGS TO COME INTO PLAY WHERE YOU CAN RECEIVE MONEY ELECTRONICALLY, NOT NECESSARILY CASH.
THE QUESTION I THINK IS MAYBE LOOKING AT THE PROCESSES IN PLACE AND MAKING SURE THAT IT'S APPROPRIATE FOR TODAY'S TIMES.
THEN I JUST WANTED TO CLARIFY THAT THE FINANCIAL CLERK AND THE OFFICE MANAGER ARE NOT ONE AND THE SAME.
THEN THE LAST THING AND THEN [INAUDIBLE] YOU CAN ANSWER MY QUESTIONS BECAUSE I'M TRYING TO GET IT ALL AT.
THE LAST THING IS THAT WHILE WE ARE DOING INTENSIVE TRAINING FOR THE PRINCIPAL, THE PRINCIPAL IS NOT COLLECTING THE MONEY.
THE INTENSIVE TRAINING NEEDS TO BE FOR THE PEOPLE WHO ARE COLLECTING THE MONEY TO MAKE SURE THAT THEY HAVE AN OPPORTUNITY TO DO THE RIGHT THING AND I WOULD SAY TO YOU, MOST PEOPLE ARE GOING TO WANT TO DO THE RIGHT THING.
FOR INSTANCE, WE TALKED ABOUT THE COURIERS.
IT'S ACCORDING TO ONE DAY THE COURIER GETS THERE.
IF YOU'RE CAUGHT UP WITH OTHER ISSUES ON THE CAMPUS, ARE YOU TRYING TO CALL A COURIER? PROBABLY NOT. I JUST ASKED THAT QUESTION ABOUT WHEN'S THE LAST TIME THIS PROCESS HAS BEEN LOOKED AT? YES. THANK YOU OUR TRUSTEE [INAUDIBLE] FOR THAT QUESTION.
ALL OF OUR ACTIVITY SPONSORS WHO ARE TRAINED AT THE VERY BEGINNING OF THE SCHOOL YEAR ON THE PROCESSES TO COLLECT FUNDS.
IT DOESN'T MATTER IF YOU'RE COLLECTING FOR BAND OR CHEER OR WHATEVER GROUP YOU WILL BE TRAINED EACH YEAR.
IN ADDITION TO THE FINANCIAL CLERKS RECEIVING TRAINING IN THE OFFICE MANAGER RECEIVING TRAINING.
TO ANSWER THE QUESTION EARLIER, THEY ARE EXPECTED TO TURN THE MONEY IN AT THE END OF EVERY DAY TO THE OFFICE MANAGER WHO RECEIPTS THAT FUNDING AND THEN PLACES IT IN A SAFE, SECURE ENVIRONMENT FOR THE COURIER TO PICK UP.
THE OTHER QUESTION IS, WHEN IS THE LAST TIME WE REVIEWED THE PROCESS? THIS PAST SUMMER.
DR. HELLMAN IS WAITING TO BE ACKNOWLEDGED.
I JUST WANTED TO ADD TRUSTEE [INAUDIBLE].
WE NEED TO ASK OUR TEAM WHO ACTUALLY DO ALL THE COLLECTION OF THE MONEY, HOW CAN WE HELP THEM WITH THIS PROCESS? BECAUSE I WOULDN'T LIKE TO POINT OUT THAT JUST TODAY, JUST IN LESS THAN TWO HOURS WE'VE HEARD OF ADDITIONAL RESPONSIBILITIES THAT ARE ADDED TO SCHOOLS AND THOSE ARE ADDED TO EXISTING PEOPLE.
IT IS A LOT AND I THINK WE NEED TO GET THEIR FEEDBACK SO I JUST WANTED YOU TO KNOW THAT THE LEADERSHIP TEAM IS COMMITTED TO INVESTING IN SOME TIME WITH THEM TO GIVE US SOME ADDITIONAL FEEDBACK.
THANK YOU. THANK YOU, CHIEF, [INAUDIBLE].
[OVERLAPPING] SOMETHING THAT TRUSTEE [INAUDIBLE] SAID EARLIER.
I JUST I WOULD JUST LIKE A LITTLE BIT MORE INFORMATION ON IT.
I DO REALIZE THAT WE'RE IN THE ZOE AND CASH-OUT WORLD, BUT ARE OUR CAMPUSES EQUIPPED TO TAKE WIRELESS PAYMENTS?
[01:50:08]
WAS THAT ALL HANDLED LIKE MAYBE THE FUNDRAISER, THEY CAN SEND IT DIRECTLY TO THE FUND RAISE A PERSON, AND THEN THEY WOULD JUST BONDED IT ALL TOGETHER, SEND IT TO THE CAMPUS.TRUSTEE WHITE WE DO HAVE REFERENCE TRACK, WHICH IS AN ELECTRONIC PAYMENT SYSTEM THAT CAMPUSES HAVE ACCESS TO THIS SHOULD A PARENT OR A STAKE HOLDER WANT TO SUPPORT A FUNDRAISER, THEY CAN SUBMIT THAT PAYMENT THROUGH THOSE ELECTRONIC MEANS.
JUSTIFIED. I WAS ACTUALLY REFERRING TO IF SAY FOR INSTANCE, THE BAND DIRECTOR IS HAVING A FUNDRAISER AND THEY RECEIVE MONEY ELECTRONICALLY.
THAT'S WHY I'M ASKING A QUESTION.
I GUESS THEY COULD USE WHAT SHE JUST SAID REFERENCE, TRACK TO DO THAT IF THE.
YES. THE BAND DIRECTOR IN THIS CASE SHOULD NOT BE RECEIVING CASH TO HIS OR HER PERSONAL ZELL OR CASH APP ACCOUNT.
REF TRACK. IT'S THE DISTRICT'S MECHANISM FOR ELECTRONIC RECEIPT OF PAYMENTS OR DONATIONS.
ALSO, OF COURSE, SOMEONE SAID THE FINANCIAL MANAGER AND AN OFFICE MANAGER WAS NOT THE SAME, BUT THEN I I KEEP HEARING THAT MONEY IS BEING TURNED INTO THE OFFICE MANAGER, WHICH IS WHAT I THOUGHT ALSO.
TRUSTEE WHITE, AT SECONDARY CAMPUSES THEY ARE OFTEN STAFFED WITH A FINANCIAL CLERK AND AN OFFICE MANAGER.
AT ELEMENTARY CAMPUSES, THEY MAY NOT HAVE AN OFFICE OR FINANCIAL CLERK, THEY MAY JUST ONLY HAVE THE OFFICE MANAGER.
I SEE THE IMPORTANCE OF EVERYONE THAT'S HANDLING MONEY GOING TO TRAINING.
I ALSO SEE THE IMPORTANCE OF PRINCIPALS GOING AS WELL.
BECAUSE IF YOU DON'T KNOW WHAT TO LOOK FOR HACKING, KNOW WHAT YOUR STAFF MAYBE NOT DOING CORRECTLY.
BUT I THINK IT'S OF COURSE IS NEEDED.
ALSO I KNOW THAT A LOT OF PARENT GROUPS MAY NOT BE FUNCTIONING THE WAY THEY HAD BEEN DUE TO COVID, BUT HOPEFULLY THEY WILL COME BACK AND TAKE ON THIS BURDEN SO THE CAMPUS WON'T BE SO OVERBURDEN WITH IT. THANK YOU.
ANY ADDITIONAL QUESTIONS? ARE WE READY TO VOTE? ALL THOSE IN FAVOR? THE MOTION PASSES THREE ZERO.
YOU'RE JUST ADOPTED THE MOTION TO ACCEPT THE MAKE FILE INTERNAL AUDIT REPORT, ACTIVITY FUNDS, [INAUDIBLE] MONTESSORI AUDIT REPORT 23 CON-002.
TRUSTEES, WE ARE READY FOR ADJOURNMENT.
THE TIME IS 04:41 PM AND THIS MEETING IS ADJOURNED.
* This transcript was compiled from uncorrected Closed Captioning.