Nov 12, 2025 Audit Committee Meeting Agenda and Notice

[00:00:05]

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

[1. Notice and Return]

[2. Moment of Silence and Pledge of Allegiance]

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

MIC] WELCOME EVERYONE. THE FOLLOWING COMMITTEE MEMBERS ARE IN ATTENDANCE FROM DISTRICT SIX JOYCE FOREMAN I THINK TRUSTEE CURRIE'S JOINING US,

[3. Acknowledgements]

AND I AM SARAH WEINBERG CHAIR OF THE AUDIT COMMITTEE.

ED RAMOS JOINS US. AND THANK YOU FOR BEING HERE TO RUN THE MEETING WITH ME.

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 IN BOARD POLICY BED LOCAL PERTAINING TO PUBLIC PARTICIPATION.

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.

SPEAKERS ARE CAUTIONED THAT WHAT THEY SAY COULD VIOLATE THE RIGHTS OF OTHERS UNDER THE LAW OF DEFAMATION OR INVASION OF PRIVACY, AND IF THEY ARE UNSURE OF THE LEGAL EFFECT, THE REMARKS, THEY MAY WANT TO SEEK LEGAL ADVICE PRIOR TO THEIR UTTERANCE.

ANY PERSON WHO BECOMES BOISTEROUS, DISRUPTIVE OR FAILS TO ABIDE BY THE RULES OF THIS ASSEMBLY WHILE ADDRESSING THE BOARD OR WHILE ATTENDING THIS MEETING, SHALL BE ASKED TO LEAVE. FAILURE TO LEAVE WHEN REQUESTED TO DO SO MAY RESULT IN THE PERSON BEING ESCORTED FROM THE BUILDING, FROM THE MEETING, AND SUBJECT TO ARREST. OUR AGENDA NOW CALLS US FOR THE PUBLIC FORUM SEGMENT OF OUR MEETING.

HOWEVER, I WAS INFORMED THAT NO ONE SIGNED UP TO SPEAK.

THE BOARD WILL NOW RETIRE TO CLOSED SESSION. THE PUBLIC AND STAFF ARE WELCOME TO STAY IN THIS ROOM OR CONNECTED TO TEAMS,

[5. Closed Session - The Board will retire to closed session pursuant to Texas Government Code Section 551 concerning the following section:]

THE BOARD WILL RETIRE TO CLOSED SESSION PURSUANT TO TEXAS GOVERNMENT CODE 551, CONCERNING ANY AND ALL PURPOSES PERMITTED BY THE ACT, INCLUDING, BUT NOT LIMITED TO, THE FOLLOWING TEXAS GOVERNMENT CODE, SECTION 551.06 TO DELIBERATE REGARDING THE DEPLOYMENT OR SPECIFIC OCCASIONS FOR IMPLEMENTATION OF SECURITY PERSONNEL OR DEVICES OR SECURITY AUDIT.

551.089 TO DELIBERATE REGARDING SECURITY ASSESSMENTS OR DEPLOYMENTS RELATING TO INFORMATION RESOURCES TECHNOLOGY NETWORK SECURITY INFORMATION AS DESCRIBED BY SECTION 2059.055B OR THE DEPLOYMENT OR SPECIFIC OCCASIONS FOR IMPLEMENTATION OF SECURITY PERSONNEL, CRITICAL INFRASTRUCTURE OR SECURITY DEVICES, OR 551.129 TO CONSULT WITH ITS ATTORNEYS BY USE OF TELEPHONE CONFERENCE CALL, VIDEO CONFERENCE CALL, OR COMMUNICATIONS OVER THE INTERNET IN AN OPEN MEETING AND OR CLOSED MEETING.

WE ANTICIPATE CLOSED SESSION TO LAST ABOUT 15 MINUTES.

THE TIME IS NOW. 4:05 AND WE'RE IN CLOSED SESSION.

AND WE ARE BACK IN OPEN SESSION. THE BOARD TOOK NO ACTION IN CLOSED SESSION.

[6. Reports]

TRUSTEE WEINBERG, MEMBERS OF THE AUDIT COMMITTEE, BEFORE YOU, YOU HAVE THE DISTRICT FINANCIAL UPDATE, SPECIFICALLY THE OCTOBER BUDGET AMENDMENT. THE OCTOBER BUDGET AMENDMENT HAD A NEUTRAL BUDGET ADJUSTMENTS. SPECIFICALLY, I WOULD LIKE TO NOTE THAT THE OCTOBER BUDGET AMENDMENT INCLUDED A BUDGET AMENDMENT THAT ALSO OCCURRED IN SEPTEMBER. IF YOU LOOK AT THE COLUMN LABELED BUDGET AMENDMENTS PREVIOUSLY ADOPTED.

THAT IS SPECIFICALLY WHAT I AM REFERRING TO. AND THIS, IF YOU REMEMBER, WAS A RESULT OF THE PASSAGE OF HOUSE BILL TWO THAT WAS IMPLEMENTED

[00:05:06]

AND THAT TOOK US FROM A $128 MILLION DEFICIT TO A $91 MILLION DEFICIT.

91.3, TO BE EXACT. AS A RESULT OF THIS BUDGET AMENDMENT, WE INCLUDED ADJUSTMENTS BECAUSE OF THE HOMESTEAD EXEMPTION, THE INCREASE FROM $100,000 TO $140,000 AS A RESULT OF THAT EXEMPTION THAT REDUCED LOCAL TAX COLLECTION ESTIMATES BY 50 MILLION. ALSO INCLUDED IN THAT AMENDMENT AND HOUSE BILL TWO, WERE THE TEACHER PAY RAISES AND STAFF SUPPORT PAY RAISES THAT IMPACTED ALL FUNCTIONS, AS YOU SEE IN THAT COLUMN.

AND THAT ALSO INCREASED OUR STATE REVENUE, WHICH YOU SEE ADJUSTED UNDER THE REVENUE SECTION, AND ALSO AS A RESULT OF HOUSE BILL TWO, THAT DID DECREASE OUR RECAPTURE LIABILITY.

AND WE BROUGHT THAT DOWN TO 70 MILLION. SO ULTIMATELY, THE TOTAL ADJUSTMENTS AS A RESULT OF THAT AMENDMENT WERE 40.74 MILLION, AGAIN BRINGING OUR DEFICIT DOWN TO 91.3 MILLION.

THANK YOU, CHIEF RAMOS. TRUSTEES AND COMMITTEE MEMBERS, ANY QUESTIONS? ALL RIGHT. WE'LL MOVE ON TO 6.2 REPORT ON FISCAL YEAR 24-25 E-RATE PROGRAM AUDIT.

WE HAVE A REPRESENTATIVE FROM AND WE HAVE A REPRESENTATIVE FROM WHITLEY PENN TO GIVE THE REPORT ON THE E-RATE AUDIT.

THANK YOU, MR. RAMOS. GOOD AFTERNOON. HIT THE BUTTON.

THE AUDIT COMMITTEE. MY NAME IS LUPE GARCIA. I'M A PARTNER WITH WHITLEY PENN.

I'M HERE THIS AFTERNOON TO PRESENT TO YOU THE RESULTS OF THE 2025 E-RATE COMPLIANCE AUDIT.

OUR PROCEDURES WERE DESIGNED TO ASSESS THE DISTRICT'S COMPLIANCE WITH E-RATE PROGRAM RULES AND REQUIREMENTS, WITH THE APPLICABLE FEDERAL AND STATE LAW AND DISTRICT POLICIES IN REGARDS TO ITS ADMINISTRATION OF THE E-RATE PROGRAM.

IN ORDER TO PERFORM THOSE PROCEDURES, IT REQUIRED THAT WE MEET WITH VARIOUS INDIVIDUALS WWITHIN THE DISTRICT THAT ARE INVOLVED WITH THE DISTRICT'S E-RATE PROGRAM, INCLUDING THE SUPERINTENDENT, THE CHIEF TECHNOLOGY OFFICER, AND THE E-RATE COMPLIANCE OFFICER.

WE PERFORM PROCEDURES RELATED TO THE ANNUAL TRAINING THAT E-RATE PERSONNEL ARE REQUIRED TO UNDERGO EACH AND EVERY YEAR.

GIFTING OVER. GIFTING OVER THE PROCUREMENT OVER THE CONFLICT OF INTEREST.

WE ALSO TESTED THE PROCUREMENT OF THE GOODS AND SERVICES THAT WERE FUNDED BY E-RATE PROGRAM, AS WELL AS THE PROPER COMPLETION OF THE FCC REQUIRED FORMS. AND WE PERFORMED PROCEDURES IN THE CHILDREN, THE DISTRICT'S COMPLIANCE WITH THE CHILDREN'S INTERNET PROTECTION ACT, OR CIPA.

WE DO TEST CAPITAL ASSETS, THE ACTUAL ASSETS FUNDED BY E-RATE.

WE SELECT A SAMPLE OF THOSE ASSETS AND GO TO ALL THE VARIOUS LOCATIONS WHERE THEY MIGHT BE LOCATED ACROSS THE DISTRICT.

THIS IS THE AREA WHERE WE DID NOTE SOME INCONSISTENCIES THAT WE NOTED IN OUR REPORT.

I DO WANT TO MAKE IT CLEAR THAT THE ITEMS WE NOTED IN OUR REPORT DO NOT INDICATE THAT THE DISTRICT VIOLATED ANY FEDERAL OR STATE COMPLIANCE REQUIREMENTS OR ANYTHING ALONG THOSE LINES THAT WOULD JEOPARDIZE THE FUNDING FROM THE E-RATE PROGRAM.

MOST OF THESE ARE MERELY CLERICAL IN NATURE. DESCRIPTION DISCREPANCIES BETWEEN THE DISTRICT'S SYSTEM AND THE SOURCE UNDERLYING DOCUMENTATION.

SO ON PAGE EIGHT OF THE REPORT IS WHERE WE OUTLINE THOSE ITEMS. SO STARTING AT THE TOP, THE PURCHASE PRICE FOR THREE OF THE ASSETS IN THE SYSTEM DID NOT AGREE TO THE UNDERLYING DOCUMENTATION THAT WAS BROUGHT TO THE DISTRICT'S ATTENTION AND WAS CORRECTED IMMEDIATELY. WE HAD FUNDING REQUEST NUMBERS THAT WERE INCORRECTLY RECORDED ON THE ACTUAL ASSET LABEL.

AGAIN, THAT WAS SOMETHING WE BROUGHT TO THE DISTRICT'S ATTENTION, AND THEY ADDRESSED ROOM NUMBERS BEING INCORRECT IN THE SYSTEM.

WE DID FIND ALL THE ITEMS WE WERE LOOKING FOR.

THEY JUST MAY HAVE NOT BEEN IN THE ROOM, THE PARTICULAR ROOM THAT WAS IN THE DISTRICT'S RECORDS.

AND SO A LOT OF TIMES THAT WAS BECAUSE EITHER IT WAS PLACED OR MOVED AFTER THE FACT, OR THE ROOM NUMBER WASN'T ORIGINALLY RECORDED.

THERE WERE ASSETS THAT WERE MISIDENTIFIED AS BEING FUNDED BY E-RATE WHEN THEY WERE NOT.

SO THAT WAS CORRECTED. SOME DUPLICATED ITEMS WERE INCLUDED IN THE RECORDS AND THEN JUST INCORRECT FRN NUMBERS ON THE WORK

[00:10:08]

THE DISTRICT WAS RECEPTIVE THOSE RECOMMENDATIONS AND HAS COME UP WITH A CORRECTIVE ACTION PLAN TO ADDRESS THOSE.

BUT AGAIN, NOTHING THAT VIOLATED ANY FEDERAL STATE COMPLIANCE REQUIREMENTS FOR THE E-RATE FUNDING.

I DO WANT TO THANK THE DISTRICT FOR THEIR COOPERATION.

WE WERE ABLE TO TIMELY COMPLETE OUR PROCEDURES AND ISSUE THIS REPORT.

AND SO WE APPRECIATE THEIR PATIENCE AND COOPERATION.

AND FOR THE SUPPLY OF ALL THE INFORMATION WE REQUESTED AND ESCORTING US WHEN WE WERE PERFORMING THOSE ASSET INVENTORY ACROSS THE DISTRICT.

SO IF THERE ARE ANY QUESTIONS, I'LL BE HAPPY TO TAKE THOSE QUESTIONS AT THIS TIME. THANK YOU, MR. GARCIA. TRUSTEES AND COMMITTEE MEMBERS ANY QUESTIONS? YES. I'LL RECOGNIZE MR. LEWIS. OKAY. JUST A QUICK QUESTION.

SO I BELIEVE THAT'S A GOOD THING. BUT WHAT'S THE BEST OF CLASS? RIGHT? BECAUSE I'M JUST TRYING TO GET AN UNDERSTANDING OF THE NUMBER OF INSTANCES KIND OF COMPARED TO KIND OF THE OVERALL YOU KNOW, LANDSCAPE OF ENVIRONMENT OF THE PRODUCTS OUT THERE.

SO WHAT'S BEST OF CLASS MAYBE COMPARED TO OTHER DISTRICTS THAT YOU PERFORM THESE TYPES OF ENGAGEMENTS FOR BECAUSE I DON'T KNOW IF ZERO OF ALL THESE IS, IS OPTIMUM. I THINK THAT'S WHERE WE ALL STRIVE TO BE.

BUT WHAT DO YOU CONSIDER LIKE, HEY, THIS IS KIND OF A BEST OF CLASS SCENARIO.

SO I WOULD AGREE WITH YOUR OBSERVATION THAT OVER TIME, THE NUMBER OF INSTANCES THAT WE NOTED IN OUR REPORT WHERE WE HAVE INCONSISTENCIES HAS DECREASED. DALLAS ISD IS A VERY LARGE DISTRICT WITH SEVERAL LOCATIONS SEVERAL ASSETS FUNDED BY E-RATE OVER THAT PERIOD OF TIME. I WOULD SAY THAT IT'S WHILE YOU STRIVE FOR PERFECTION, THERE IS GOING TO BE AREAS WHERE SOMETIMES THERE IS THE ITEMS WE NOTED. SO IT'S MINIMAL. YOU KNOW, IT DID COME ACROSS IN OUR PROCEDURES.

SO WE DO WANT TO BRING IT TO THE DISTRICT'S ATTENTION.

BUT THIS IS SOMETHING THAT THEY PAY ATTENTION TO, BOTH WITH THE ASSETS THAT ARE ACQUIRED DURING THE CURRENT YEAR, AS WELL AS THE ASSETS THAT THEY'RE RESPONSIBLE FOR THAT WERE FUNDED IN PRIOR YEARS.

SO IT'S A TRAINING, YOU KNOW, THERE'S ROTATION.

YOU HAVE NEW PEOPLE IN DIFFERENT POSITIONS YEAR TO YEAR. THERE'S A TRAINING COMPONENT THERE'S SYSTEM UPDATES AND CHANGES FROM TIME TO TIME.

SO IT'S JUST A CONTINUOUS PROCESS OF AN AREA THAT NEEDS TO BE MONITORED.

IMPROVEMENTS MADE ALONG THE WAY IN REAL TIME.

BUT THIS IS A LOW NUMBER OF INSTANCES. WE TESTED 150 ITEMS ACROSS TEN LOCATIONS IN THE DISTRICT, FOR A TOTAL OF 150. SO THAT WAY THAT PUTS IT IN PERSPECTIVE FOR WHAT I NOTED THAT WE NOTICED IN THE REPORT.

THANK YOU BOTH. TRUSTEE FOREMAN. SO JUST TO CONTINUE WITH CHRIS, BECAUSE WE'VE BEEN AROUND FOR A WHILE REGARDING THIS AND EVERY AUDIT WE DO HAVE THIS ISSUE AND 150 ASSETS TO BE TESTED OUT OF PROBABLY THE MILLIONS OF ASSETS THAT WE HAVE.

THIS IS A LOW NUMBER, BUT SOME OF THE ISSUES THAT WE'VE ENCOUNTERED BEFORE ARE STILL SOME OF THE SAME ISSUES THAT WE'RE ENCOUNTERING TODAY IN REGARDS TO E-RATE ACCESS.

AND I KNOW WE'RE IN COMPLIANCE, BUT MAYBE SOMEBODY ELSE CAN TELL ME, HOW MANY LOCATIONS DO WE HAVE WHERE WE HAVE E-RATE ASSETS? YES. WE HAVE E-RATE EQUIPMENT PRETTY MUCH AT ALL LOCATIONS.

BECAUSE THERE'S INTERNET CABLING AND THINGS LIKE THAT THAT FALL UNDER THE E-RATE CATEGORY.

AND THE REASON I ASKED THAT QUESTION IS, IS THAT IT'S A SMALL SAMPLING OF WHAT WE'RE TESTING, BUT IT'S IT STILL SHOWING US THAT THESE ISSUES ARE PERSISTENT.

PARTICULARLY THINGS LIKE LABELING AND HAVING THE WRONG LABEL ON THE WRONG NUMBERS.

WE'VE GONE THROUGH THAT OVER AND OVER AND OVER, AND IT JUST SEEMS LIKE AT SOME POINT WE WOULD GET TO A PLACE WHERE THAT'S NO LONGER AN ISSUE, EVEN IN A SMALL NUMBER. DO YOU AGREE WITH ME OR DISAGREE?

[00:15:08]

WE'RE CONSTANTLY DOING CONTINUOUS IMPROVEMENT EXERCISES, LOOKING AT TRAINING, LOOKING AT OUR PROCESSES AND PROCEDURES.

YES, I DO WANT IT TO GET LOWER. I EXPECT IT TO GET LOWER NEXT YEAR.

I THINK THE QUESTION THAT MR. LEWIS ASKED WAS A GREAT QUESTION AROUND WHAT IS, YOU KNOW, NECESSARILY THE BASELINE OR WHAT IS, YOU KNOW, LOGICAL EXPECTATIONS. SO AND SO IS THIS LOGICAL EXPECTATIONS TO YOU ON THIS SMALL SAMPLING? IT'S SHOWING GREAT IMPROVEMENT OVER THE YEARS.

FOR ME, I WANT TO GET, YOU KNOW, AS CLOSE TO ZERO AS POSSIBLE.

NOT SURE IF THAT IS ACTUALLY ATTAINABLE, BUT THAT'S WHAT WE STRIVE TO DO EVERY YEAR.

WELL, I'M STILL A LITTLE BIT CONFUSED ON THE ANSWER IN REGARDS TO THE WE HAVE A VAST NUMBER OF ASSETS, CORRECT. AND DIFFERENT ASSETS. AND SOMETHING AS SIMPLE AS THE PURCHASE PRICE BEING WRONG.

THAT JUST DOESN'T MAKE ANY REAL SENSE. AND WE HAVE A LARGE DEPARTMENT.

YOU HAVE A LARGE DEPARTMENT, RIGHT? THE E-RATE DEPARTMENT IS NOT NECESSARILY.

NOT THE E-RATE DEPARTMENT, JUST THE LARGE TECHNOLOGY.

THE IT TECHNOLOGY? YEAH WE HAVE A LARGE, HOW MANY PEOPLE WORK IN THERE? 224. 224 PEOPLE. THAT'S A LARGE DEPARTMENT. AND I THINK EVERYBODY PULLING TOGETHER COULD TRY TO CHANGE SOME OF THAT.

SO AS WE GET THESE. SO YOU WEREN'T HERE WHEN WE WERE IN E-RATE JAIL.

I WAS HERE BUT IN A DIFFERENT ROLE. IN A DIFFERENT ROLE. [LAUGHTER] YES. I WAS SITTING HERE IN THE SAME ROLE.

AND WANT TO MAKE SURE THAT WE CONTINUE TO PROGRESS IN A POSITIVE MANNER BECAUSE WE DON'T WANT TO PAY ANYTHING BACK.

AND THE SAMPLINGS ARE SMALL. MAYBE THEY NEED TO BE LARGER SO WE CAN GET A GOOD IDEA.

I DON'T KNOW IF THEY. ARE THEY THROUGHOUT THE CITY OR IN ONE SPECIFIC AREA OF THE CITY? DO YOU KNOW? SO THE LOCATIONS THAT WE SELECT ARE RANDOM, WITH THE EXCEPTION OF IF WE HAD OBSERVATIONS IN A PRIOR YEAR, WE INCLUDE THAT LOCATION AGAIN IN THE SUBSEQUENT YEAR.

OTHERWISE, WE DO ROTATE IT FROM YEAR TO YEAR TO MAKE SURE WE'RE COVERING AS MUCH OF THE DISTRICT AS POSSIBLE.

BECAUSE THAT WAS STATED PREVIOUSLY, THERE'S E-RATE ASSETS AT EVERY SINGLE ONE OF YOUR CAMPUSES AND OTHER FACILITIES.

YEAH, I KNOW. AND THAT'S WHY I'M ASKING THE QUESTION.

BUT THANK YOU FOR YOUR RESPONSE. THANK YOU. TRUSTEE FOREMAN AND TRUSTEE CURRIE.

I HAVE JUST A COUPLE OF QUESTIONS TO MAKE SURE I UNDERSTAND THE AUDIT PROCESS.

SO I SEE WE SELECTED 150 E-RATE ASSETS ACROSS TEN LOCATIONS, AND WE TALK ABOUT AN E-RATE ASSET.

WHAT EXACTLY ARE WE TALKING ABOUT? ARE WE TALKING ABOUT A PARTICULAR PIECE OF TECHNOLOGY, A PARTICULAR PHONE? IT'S TYPICALLY NETWORKING EQUIPMENT. YES. EACH INDIVIDUAL PIECE OF EQUIPMENT IS SPECIFICALLY LABELED AND TRACKED IN THE DISTRICT'S E-RATE ASSET DATABASE.

OKAY. AND SO FOR A TYPICAL CAMPUS, HOW MANY E-RATE ASSETS MIGHT THERE BE JUST AT A REAL I KNOW THIS IS JUST TRYING TO GET A SENSE OF, WE'RE BASICALLY LOOKING AT 15 AT EACH LOCATION.

IS THAT MOST OF THEM, OR IS THAT 1%? THERE'S HUNDREDS OF EQUIPMENT IN THE LOCATION DEPENDS ON THE SITE.

LIKE, SAY FOR INSTANCE, SKYLINE HAS A LOT MORE THAN ONE OF OUR SMALLER ELEMENTARY SCHOOLS.

BUT EVEN IN THE SMALL ELEMENTARY SCHOOLS, THERE'S HUNDREDS OF ASSETS.

AND THEN WHEN I SEE THE NUMBER OF INSTANCES, THERE'S 43 TOTAL WHEN YOU ADD THEM UP, ARE SOME OF THESE MULTIPLE INSTANCES FOR EACH ITEM SO THAT WHEN YOU ACTUALLY, YOU KNOW. LET'S SAY ONE ASSET IS IT DOES IT SHOW UP THREE TIMES ON THIS LIST AS OPPOSED TO EACH ONE IS A UNIQUE ASSET.

THAT WAS THE CASE FOR SOME OF THE ASSETS, BUT NOT ALL OF THEM. YES.

I'M JUST TRYING TO GET A SENSE OF, YOU KNOW, THAT'S 43 INSTANCES OUT OF 150 E-RATE ASSETS.

AND IT'S HARD, I'M CERTAINLY THANKFUL WE'RE IN COMPLIANCE.

I'M VERY, VERY THANKFUL WE'RE IMPROVING EACH YEAR THAT'S WHAT WE WANT TO DO EACH YEAR. SO I'M CERTAINLY NOT CRITICAL IN THAT SENSE.

I'M QUITE THE OPPOSITE. I'M THANKFUL OF THE WORK THAT WE'VE DONE, BUT IT'S HARD, YOU KNOW, UNDERSTAND COMMITTEE ADVISOR LEWIS' QUESTIONS KIND OF KNOWING WHAT'S WHAT DOES GOOD MEAN IT'S HARD TO DEFINE SITTING FROM HERE.

SO YOU KNOW, JUST, YOU KNOW, IF THERE IS ANY MORE INSIGHT YOU CAN PROVIDE AS TO YOU KNOW, WHAT IS 43 INSTANCES OUT OF 150 E-RATE ASSETS LOOKED AT MEAN IN TERMS OF WHETHER WE ARE DOING WELL OR NOT DOING WELL, AND MAYBE THE STANDARD IS SIMPLY WE'RE IN COMPLIANCE AND WE'RE NOT.

BUT IF YOU COULD PROVIDE ANY MORE CLARITY, IT WOULD BE HELPFUL.

[00:20:01]

THE INSTANCES WE NOTED AS I WENT OVER A LOT, IT WAS CLERICAL.

YOU KNOW, YOU ARE DEALING WITH VENDORS THAT THERE'S CHANGES THAT OCCUR TO THE PURCHASE ORDERS.

YOU KNOW, SHIPMENTS COME IN INCOMPLETE OR IN MULTIPLE SHIPMENTS.

AND SO THAT WAS SOME OF THE REASON WHY THERE WAS SOME INCORRECT INFORMATION ASSOCIATED WITH THE PARTICULAR ASSET, JUST BECAUSE OF THE WAY THE PRODUCTS SHOW UP TO THE DISTRICT.

AND SO THERE'S A VARIETY OF REASONS WHY INFORMATION GETS ENTERED INTO THE SYSTEM INCORRECTLY.

BUT ULTIMATELY WE WERE ALWAYS ABLE TO RECTIFY THE SOLUTION, IDENTIFY CORRECTLY OKAY.

WHAT CORRECT FRN WAS THIS RELATED TO? WHAT CORRECT INVOICE AND VENDOR DID THIS COME FROM AND THAT WAS CORRECTED.

SO KNOWING THAT WE'VE NOW POINTED THIS OUT TO THE DISTRICT, THIS IS SOMETHING THAT THEY'RE GOING TO KEEP AN EYE ON FOR ALL THE NEW ASSETS THAT ARE BEING ADDED, AS WELL AS THE ASSETS THAT ALREADY EXIST IN THEIR PROCESS TO PERIODICALLY REVIEW THEIR RECORDS AND RECONCILE IT WITH THE SUPPORTING DOCUMENTATION.

AND MAYBE THE CONCEPT THAT I COULD USE SOME CLARITY ON IS MATERIALITY. AND I DON'T KNOW IF THAT'S A CONCEPT YOU'RE USING WHEN YOU DO THIS TYPE OF AUDIT AS OPPOSED TO OTHER TYPES OF AUDITS. BUT, YOU KNOW, A CLERICAL ISSUE IS OBVIOUSLY SOMETHING VERY DIFFERENT THAN LOSING AN ENTIRE PIECE OF EQUIPMENT. RIGHT? WHICH IS WHAT I HEAR YOU SAYING. SO IT SOUNDS TO ME AS IF MANY OF THESE ARE ARE RELATIVELY MINOR CLERICAL ITEMS THAT ARE NOT FUNDAMENTALLY PUTTING OUR E-RATE PROGRAM AT RISK IN ANY WAY.

AND ARE THERE SOME OF THESE INSTANCES THAT ARE MORE SERIOUS THAN OTHERS, OR ALL OF THESE CONSIDERED RELATIVELY IMMATERIAL? IF THAT'S A TERM YOU CAN USE. I KNOW AUDITORS ARE VERY CAREFUL WITH THEIR TERMS, SO I DON'T WANT TO PUT WORDS IN YOUR MOUTH THAT AREN'T CORRECT.

SO IN THIS PARTICULAR PROCESS, YOU KNOW, WE'RE NOT EXPRESSING AN OPINION WHERE YOU WOULD HAVE MATERIALITY THRESHOLDS TO CONSIDER IN THIS PERFORMANCE AUDIT.

WE'RE LOOKING HERE ARE THE REQUIREMENTS. HERE ARE THE RULES. HERE ARE YOUR POLICIES. ARE YOU FOLLOWING THEM. ARE THEY BEING MET YES OR NO. AND IF THEY WEREN'T WHAT WERE THEY. AND SO THAT'S WHAT WE'VE INCLUDED IN THE REPORT. I WOULD SAY THAT THESE ARE MORE OF THE CLERICAL NATURE, I DON'T WANT TO SAY IMMATERIAL TO DISCOUNT THE ATTENTION THEY DESERVE.

BUT THE IMPORTANT IS AN IMPORTANT ASPECTS ARE THE ASSETS WERE PROPERLY PROCURED, THE DISBURSEMENTS WERE ACCURATE, THE FORMS WERE PROPERLY PREPARED AND COMPLETED AND APPROVED.

SO THIS IS MORE JUST IN-HOUSE DALLAS ISD NEEDS TO FOCUS ON THESE AREAS TO MAKE SURE WE MINIMIZE THESE AND GET THEM AS CLOSE TO ZERO AS POSSIBLE.

THANK YOU VERY MUCH. AND MY QUESTIONS ARE MORE GEARED TOWARD MAKING SURE I UNDERSTAND THE IMPACT.

WHAT I DO SEE IS CONTINUED IMPROVEMENT AS, ADVISOR LEWIS NOTED, AND I APPRECIATE THAT.

THANK YOU SO MUCH FOR YOUR WORK ON THIS. I HAVE A QUICK QUESTION.

THEN I'LL GO TO TRUSTEE FOREMAN. JUST HOW DO YOU DETERMINE SAMPLE SIZE AND THEN HOW DO YOU DETERMINE MODIFICATION OF SAMPLE SIZE? SO THE SAMPLE SIZE IS AUDITOR JUDGMENT. SO WE LOOK AT THE OVERALL POPULATION.

AND WE USE STATISTICAL TABLES TO IDENTIFY WHAT'S AN APPROPRIATE SAMPLE FOR THE NUMBER OF LOCATIONS AND NUMBER OF ASSETS.

THE LOCATION NUMBER OF ASSETS ADDED DURING THE CURRENT FUNDING YEAR.

HAD WE IDENTIFIED MORE SERIOUS DISCREPANCIES, WE WOULD HAVE HAD TO EXPAND OUR SAMPLE EITHER DEPENDING ON THE NATURE OF THE UNDERLYING REASON WAS IT SOMETHING SPECIFIC TO A PARTICULAR LOCATION OR A PARTICULAR TYPE OF ASSET, A PARTICULAR VENDOR.

AND SO THAT WOULD GUIDE US IN WHAT AREA WE NEEDED TO POSSIBLY INCREASE OUR SAMPLE SIZE.

THANK YOU. YOU'RE WELCOME. TRUSTEE FOREMAN. THANK YOU.

SO I THINK MAYBE YOU NEED TO EXPLAIN TO TRUSTEE CURRIE WHAT HAPPENED TO THIS DISTRICT IN REGARDS TO E-RATE? AND THESE ARE E-RATE REIMBURSABLE FUNDS.

E-RATE REIMBURSE US ON THESE FUNDS AND WE WANT TO BE FORGOTTEN E-RATE.

AND THAT WAS THAT IS THE VERY REASON THAT WE HAVE THE E-RATE AUDIT TODAY, IS BECAUSE WE DON'T WANT TO GET BACK TO WHERE WE WERE BEFORE AT EACH ONE OF THESE INDIVIDUALS. AND I THINK ADVISOR LEWIS CAN TOTALLY AGREE WITH ME.

EACH ONE OF THESE ITEMS ARE EXTREMELY IMPORTANT.

WHILE WE LOOK AT A SMALL NUMBER OF E-RATE WILL COME IN AND LOOK AT EVERYTHING, AND WE DON'T WANT THAT TO HAPPEN.

SO MAYBE THERE NEEDS TO BE SOME EXPLANATION IN TERMS OF EXACTLY WHY WE'RE LOOKING AT E-RATE.

WELL, IF I MAY COMMENT OR NOT, I DON'T KNOW IF I'M OUT OF TURN, BUT THERE IS A THERE IS A.

THERE'S A DESCRIPTION OF THE HISTORY OF THE E-RATE HERE IN DALLAS, WHICH I'VE READ, SO I JUST WANT TO COMMENT THAT I HAVE THAT INFORMATION.

OKAY. SO I STILL THINK IT'S THERE ARE PEOPLE WATCHING AND THEY MIGHT WANT TO UNDERSTAND WHY THE QUESTIONS ARE SINCE TRUSTEE CURRIE ALREADY HAS IT.

THERE ARE PEOPLE WHO NEED TO UNDERSTAND EXACTLY WHY WE'RE LOOKING AT E-RATE AND HOW WE BEGIN TO HAVE THESE E-RATE AUDITS.

AND THERE ARE SEVERAL PEOPLE IN THIS ROOM WHO DO UNDERSTAND WHY WE STARTED HAVING E-RATE AUDITS AND WHY IT'S IMPORTANT THAT WE GET IT TOGETHER.

THANK YOU. DO YOU WANT TO GIVE A QUICK HISTORY?

[00:25:03]

THIS ANNUAL PERFORMANCE AUDIT OF THE DISTRICT'S E-RATE PROGRAM, THE DISTRICT VOLUNTARILY MAINTAINS UNDERGOING THIS PARTICULAR PROCESS TO BE PROACTIVE AND TO ENSURE THAT THE DISTRICT MAINTAINS COMPLIANCE, AND THAT THE DISTRICT NEVER FALLS BACK TO THAT SITUATION FROM BEFORE 2009.

SO FROM 2016 FORWARD, THE DISTRICT HAS DONE THIS VOLUNTARILY TO GO THROUGH THIS E-RATE PERFORMANCE AUDIT EACH AND EVERY YEAR.

THAT'S A QUICK QUESTION. AND THIS IS MORE SO, JUST MAYBE MY LACK OF UNDERSTANDING OF ALL THE VARIOUS SYSTEMS THAT ARE INVOLVED AND HOW THEY'RE INTEGRATED. SO I KNOW YOU KNOW YOU KNOW, TIP WEB IS THE PRIMARY SYSTEM, BUT I'M NOT SURE HOW THAT INTEGRATES WITH ORACLE OR THE CONTRACTING SYSTEM, BUT IS THERE AN OPPORTUNITY FOR THESE SYSTEMS TO LEVERAGE THE DATA OR FOR THERE TO BE SOME TYPE OF YOU KNOW, SOME, ANALYTICS THAT ARE DONE TO TRY TO CATCH SOME OF THESE WITHIN THE SYSTEM WHERE THEY CAN BE FLAGGED, POSSIBLY AT A MORE TIMELY RATE. A TIMELY FASHION FOR A REMEDIATION? ABSOLUTELY. SO, REBECCA SANCHEZ, I'M AN ED TECH.

WE RECOGNIZE THAT THE VENDOR THEMSELVES ACTUALLY CAUSED A COUPLE OF THE SYSTEMIC ISSUES.

SO WE REACHED OUT TO THEM TO TRY TO MAKE SURE THAT THE AUTOMATION IS CORRECT, MAKE SURE THE DATA IS CORRECT.

AND WE WERE REGULARLY CHECKING IT. SO WE'VE ALSO WORKED WITH OUR ASSET MANAGEMENT TEAM SINCE THEY'RE OVER THAT THAT AREA TO JUST TO MAKE SURE LIKE YOU SAID, TO MAKE SURE THAT THIS DATA IS AUTOMATED, THERE'S LESS OF THE PERSONAL TOUCH, MANUAL ERROR, ETC.. THANK YOU, COMMUNITY ADVISOR LEWIS. ANY OTHER QUESTIONS? THANK YOU. MR. GARCIA AND TEAM, WE'LL MOVE ON TO ITEM 6.3, THE REPORT ON THE DISTRICT HOTLINE.

TRUSTEES. CHAIR WEINBERG, CHIEF RUBEL HERE WITH ASSISTANT SUPERINTENDENT GARZA.

SO HERE TO ANSWER QUESTIONS. BUT IF WE LOOK AT REPORTING PERIOD TO DATE, YOU CAN SEE THAT WE'VE HAD.

WHERE DID I PUT MY GLASSES. CAN'T SEE. 762 TODAY THAT'S FOUR MONTHS OF THE YEAR.

THAT'S ACTUALLY DOWN FROM THE SAME PERIOD LAST YEAR, ALTHOUGH YOU'LL NOTICE EMPLOYEE MISCONDUCT.

I PULLED THE NUMBERS FROM THE PREVIOUS PERIOD, AND IT.

AND ACTUALLY HAVE A COPY. I CAN LEAVE WITH YOU THOSE UP A LITTLE BIT.

AND I'M GOING TO LET MR. GARZA EXPLAIN THAT BECAUSE THERE WAS SOME MANDATORY REPORTING REQUIREMENTS.

LET ME JUST FINISH ON PAGE TWO. YOU'LL SEE THE LAST THREE YEARS, THE VOLUME FOR THE WHOLE YEAR AND THEN THE AGM REPORT ON THE PAGE THREE OF THREE. IT'S A PRETTY SMALL NUMBER OF INVENTORY BASED ON THE TOTAL.

SO WE WORK THESE CASES AND TRY TO GET A RESOLUTION ON THEM AS QUICK AS WE CAN, BUT SOME TAKE LONGER AND WE WANT TO BE THOROUGH.

WE WILL BE GLAD TO ANSWER ANY QUESTIONS. THANK YOU.

ANY QUESTIONS? TRUSTEES AND COMMUNITY ADVISORS.

YES. TRUSTEE FOREMAN. SO I ACTUALLY FLIPPED OVER TO PAGE THREE OF THREE, AND MAYBE YOU CAN HELP ME. FROM THE HOTLINE, WE TURNED OVER 18 CASES TO DALLAS ISD POLICE. WHAT KIND OF CASES WERE THEY? YES, MA'AM.

LET ME DO MY BEST TO ANSWER THAT FOR YOU. TRUSTEE FOREMAN. AGAIN, THE PROCESS THAT WE WORK CASES ON TRIAGE IS ANY CRIMINAL MATTER THAT COMES THROUGH THE HOTLINE OR ANY MECHANISMS THAT WE HAVE FOR REPORTING.

WE BY PROCESS REFER THOSE TO THE PD. SO IT COULD BE ANYTHING INVOLVING A CHILD ABUSE CASE, TITLE NINE CASE INVOLVING SOME TYPE OF SEXUAL BEHAVIOR OR SOME TYPE OF EMPLOYEE.

LET'S JUST SAY AN EMPLOYEE BEHAVIORAL ISSUE THAT INVOLVES OR RISES TO THE LEVEL OF A CRIMINAL OFFENSE.

WE REFER EVERYTHING TO THE PD FOR WHAT WE CALL A SCRUBBING, IF YOU WILL.

ONCE THE PD REVIEWS AND DETERMINES THERE'S NO ACTION REQUIRED ON THEIR PART, THEY'LL THEN REFER THAT BACK TO MY OFFICE FOR INVESTIGATION OR ASSIGNMENT.

AND SO THOSE CASES THAT YOU SEE AGAIN THIS THE WHEEL IS CONTINUOUSLY MOVING.

[00:30:02]

BUT THE POINT IS THAT'S THE PROCESS AND HOW WE TRIAGE.

AND IT'S JUST A CONTINUOUS CYCLE. SO COULD YOU PUT IN THE TRUSTEE TRACKER THOSE 18 HOW IT'S CHANGED OR IF THEY'RE STILL UNDER THE POLICE? WOULD YOU LIKE THE CURRENT? LIKE AS OF TODAY. YEAH. THE CURRENT. IT'S CURRENTLY IN THE PD QUEUE. YOU GOT IT. AND THEN THE OTHER ONE IS 3 OF THE CASES WENT TO LEGAL SERVICES.

OKAY. CAN YOU EXPLAIN THAT TO ME? YES, MA'AM.

SO LEGAL SERVICES, WHAT WE DO IS WE CATEGORIZE LEGAL SERVICES/TITLE NINE.

SO TITLE NINE IS WITHIN THANK YOU. YOU BET. THANK YOU, TRUSTEE FOREMAN.

ANY OTHER QUESTIONS? ALL RIGHT. SEEING THERE ARE NO MORE QUESTIONS, WE'LL MOVE ON TO.

THANK YOU BOTH. THANK YOU. WE'LL MOVE ON TO ITEM 6.4, THE REPORT ON THE STATUS OF THE AUDIT PLAN AND THE SUFFICIENCY OF DEPARTMENT RESOURCES.

THANK YOU, TRUSTEES, WE PREPARED A REPORT FOR PLAN HOURS TO DATE.

AS YOU CAN SEE, WE'VE GOT A LOT OF AUDITS IN PROGRESS.

WE DO HAVE ONE ON SUPPLEMENTAL EARNINGS. IT'S NUMBER THREE.

AND I WOULD LIKE TO DEFER THAT TO NEXT AUDIT MEETING.

WE PLAN ON BRINGING THAT AUDIT REPORT BACK. THERE'S IT TURNED OUT TO BE A VERY INVOLVED AUDIT WITH SUPPLEMENTAL PAY OVERTIME PAY ALL THE DIFFERENT KINDS OF PAY. AND IT JUST TOOK A LOT MORE RESOURCES THAN WE REALIZED TO UNDERSTAND ALL THE DIFFERENT SYSTEMS AND WORK TOWARD ENSURING CONTROLS WERE IN PLACE. SO, YOU KNOW, THAT'S ONE THAT IS AN OUTLIER, OBVIOUSLY.

BUT I PLAN ON BRINGING THAT BACK AND WE'LL ANSWER ALL THOSE QUESTIONS AT THAT POINT, IF THAT'S OKAY.

AND THEN ONCE WE REALIZE THE FINAL, WE'LL LOOK AT, YOU KNOW, WE HAVE TO REALLOCATE BUDGET OR JUST LEAVE THIS AS IT IS AND, YOU KNOW, MAKE UP IN OTHER AREAS. AS FAR AS RESOURCES, EVERYTHING ELSE IS FINE UP TO THIS POINT.

WE PLAN ON YOU KNOW, WORKING HARD UP TO THE HOLIDAYS.

AND I THINK NEXT MEETING WE'LL HAVE A BETTER, JUST A LITTLE MORE CLEAR PICTURE OF AUDIT PLAN FOR THE YEAR.

I'LL BE GLAD TO ANSWER QUESTIONS. THANK YOU. TRUSTEE FOREMAN.

JUST ONE QUICK QUESTION ON THE SUPPLEMENTAL PAY.

DOES THAT INCLUDE THINGS LIKE THE $6,000 A YEAR FOR TRAVEL? DOES IT INCLUDE THAT STIPEND? IT'S NOT MILEAGE, IT'S JUST TRAVEL.

IS THAT INCLUDED? BECAUSE THAT'S A BIG NUMBER.

I DON'T THINK IT DOES. BECAUSE SUPPLEMENTAL PAY SOURCES WOULD BE A DIFFERENT NATURE THAN STIPENDS. OKAY. THANK YOU. AND I'LL BE GLAD TO REVISIT THAT WITH YOU NEXT TIME, IF THAT'S OKAY, TOO. WE'LL HAVE EVERYTHING LISTED OUT IN THAT AUDIT.

THANK YOU, CHIEF RUBEL. ANY OTHER QUESTIONS? SEEING AS THERE'S NONE, WE'LL MOVE ON TO 6.5 THE REPORT.

REPORT ON THE RESULTS OF THE INTERNAL QUALITY ASSESSMENT.

EVERY YEAR. EVERY YEAR WE DO AN INTERNAL QUALITY ASSESSMENT.

AND EVERY FIVE YEARS WE DO AN EXTERNAL QUALITY ASSESSMENT WHICH ACTUALLY WILL BE COMING UP IN THE SUMMER.

WE'LL THAT'S WHERE WE'LL BE SCHEDULING IT. WE APPLY ALL OUR PROCESSES, DOCUMENTED PROCESSES WORK PAPER STANDARDS, EVERYTHING TO WHAT'S REQUIRED. AND WE FEEL AT THIS POINT WE'RE IN FULL COMPLIANCE WITH THE STANDARDS.

SO THAT'S OUR INTERNAL ASSESSMENT, AND I'LL BE GLAD TO ANSWER ANY QUESTIONS.

SO I SEE YOU GOT A GOOD GRADE. YOU GAVE YOURSELVES A GOOD GRADE. WELL DONE.

TRY TO BE OBJECTIVE. YES, MA'AM. TRY TO BE, BUT IT ISN'T.

IT'S CALLED INTERNAL FOR A REASON. DO WE HAVE ANY QUESTIONS FROM OUR COMMITTEE?

[7. Approval of Minutes]

THE APPROVAL OF THE MINUTES. WE ARE NOW ON TO THE APPROVAL OF THE MINUTES OF SEPTEMBER 10TH, 2025. DO I HAVE A MOTION TO APPROVE THE MINUTES OF SEPTEMBER 10TH, 2025? SO MOVED. IT HAS BEEN MOVED BY TRUSTEE CURRIE AND SECONDED BY TRUSTEE FOREMAN THAT WE ADOPT THE MINUTES OF SEPTEMBER 10TH, 2025. ALL THOSE IN FAVOR? TRUSTEES ARE THERE ANY CORRECTIONS? ALL RIGHT. ALL THOSE IN FAVOR? PLEASE CAST YOUR VOTES BY RAISING YOUR HANDS.

MOTION PASSES THREE ZERO. GREAT. OKAY, WE'RE NOW ON TO ITEM NUMBER EIGHT.

[8. Action Items]

[00:35:07]

AND MEMBERS OF THE COMMITTEE WE HAVE A REPORT FROM OUR EXTERNAL AUDITORS, WEAVER AND TIDWELL.

WELCOME. THANK YOU. THANK YOU. IT'S WEAVER TIDWELL? GOOD AFTERNOON. GOOD AFTERNOON. MY NAME IS JENNIFER RIPKA.

I AM THE PARTNER ON THE EXTERNAL AUDIT. I'VE BEEN WITH THE FIRM FOR 19 YEARS.

I AM OUR GOVERNMENT SERVICE PRACTICE LEADER AND I HAVE HERE WITH ME CLAIRE WOOTTON.

SHE'S THE DIRECTOR ON THIS ENGAGEMENT. AND SO FEEL FREE TO INTERRUPT US AT ANY TIME DURING THE COURSE OF THIS PRESENTATION.

BUT WE'LL GO AHEAD AND GET STARTED WITH OUR WEAVER TEAM.

SO MYSELF AS THE ENGAGEMENT PARTNER. CLAIRE IS THE DIRECTOR.

WE ALSO UTILIZE A HUB FIRM THAT ASSISTS AS CONTRACTORS ON THIS AUDIT FOR ROBERT FERNANDEZ.

FERNANDEZ AND COMPANY. HIS TEAM WORKS WITH US AS PART OF THE AUDIT, DOING A CONSIDERABLE AMOUNT OF THE AUDIT ITSELF IN CONJUNCTION WITH OUR TEAM AT WEAVER. WE ALSO HAVE BEN THOMPSON AS THE ENGAGEMENT SUPERVISOR.

WE UTILIZE OUR QUALITY CONTROL AND TECHNICAL REVIEW PARTNER AND SENIOR MANAGER, AND THEN ALSO SUBJECT MATTER ADVISORS DURING THE COURSE OF THE AUDIT.

SO WE PERFORM OUR AUDIT IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS AS WELL AS GENERALLY ACCEPTED GOVERNMENT AUDITING STANDARDS.

WE ALSO PERFORM A SINGLE AUDIT OVER THE FEDERAL FINANCIAL ASSISTANCE.

AND THEN WE HAVE OUR COMPLIANCE AUDIT OVER EVERYTHING ELSE THAT'S OUTSIDE OF THAT SINGLE AUDIT.

SO WHEN WE'RE LOOKING AT PUBLIC FUNDS INVESTMENT ACT OR COMPLIANCE WITH TEA, WE UTILIZE THAT PIECE THAT COMPLIANCE PIECE OF THE TESTING FOR THAT. I WILL NOTE THAT WITHIN THIS REPORT, YOU ALL WILL SEE NOT ONLY THE FINANCIAL STATEMENTS, BUT THE COMPLIANCE PIECE FOR THE PFIA AND THE TEA STATE COMPLIANCE, BUT ALSO THE SINGLE AUDIT REPORT IN THE VERY BACK.

THE SINGLE AUDIT PIECE IS IN DRAFT FORM. AND THAT'S ONLY BECAUSE THE FEDERAL GOVERNMENT HAS NOT RELEASED THE FINAL SINGLE AUDIT OMB COMPLIANCE SUPPLEMENT. WE'VE BEEN UTILIZING THE DRAFT VERSION OF THAT WITH THE GOVERNMENT SHUTDOWN.

I WILL SAY THIS IS NOT SOMETHING THAT IS OF HIGH PRIORITY.

SO WHILE WE DO EXPECT THAT IT WILL COME OUT SOON, WE CAN'T GIVE A TIMELINE ON WHEN THAT WILL BE FINALIZED.

AND WE CANNOT ISSUE THAT REPORT UNTIL THE FINAL COMPLIANCE SUPPLEMENT HAS BEEN RELEASED.

WE START OUR AUDIT TIMELINE WITH OUR INITIAL AUDIT PLANNING.

WE COME OUT DURING THE SUMMER TO DO OUR INTERIM FIELD WORK MAY THROUGH JUNE.

BACK OUT HERE DURING FINAL FIELD WORK FOR OUR FINAL TEST OVER THE SUBSTANTIVE PIECES OF THE ANNUAL COMPREHENSIVE FINANCIAL REPORT, WE RELEASED THE AUDIT OPINIONS. AND THEN WE PRESENT HERE TO THIS BOARD.

THEN WE START THE PROCESS ALL OVER AGAIN. SIGNIFICANT CHANGES TO OUR PLANNED AUDIT STRATEGY.

THERE REALLY WASN'T ANY CHANGES WITH REGARDS TO OUR PLANNED APPROACH THAT WE STARTED WITH.

AND THERE WERE NO CHANGES TO THE SIGNIFICANT RISK THAT WE HAD ORIGINALLY IDENTIFIED DURING THE PLANNING PROCESS.

DURING OUR WORK, WE NOTED NO PAST ADJUSTMENTS AND NO SIGNIFICANT CORRECTED ADJUSTMENTS, AND THERE WERE NO MATERIAL WEAKNESSES AND NO SIGNIFICANT DEFICIENCIES DURING THE COURSE OF THE AUDIT.

AND NO INDEPENDENCE MATTERS THAT THAT AROSE DURING THE COURSE OF THE AUDIT.

AND WHEN YOU'RE LOOKING AT THE ACTUAL OPINION LETTERS, YOU'LL SEE THAT THERE'S AN UNMODIFIED OPINION WITH REGARDS TO THE FINANCIAL STATEMENTS.

THAT'S A CLEAN OPINION. IT'S THE HIGHEST LEVEL OF ASSURANCE THAT CAN BE PLACED ON A SET OF FINANCIAL STATEMENTS.

[00:40:03]

AND THEN THIS OF COURSE, THIS COMMITTEE A MATERIAL WEAKNESS IS GOING TO BE A DEFICIENCY OR A COMBINATION OF DEFICIENCIES SUCH THAT THERE IS A REASONABLE POSSIBILITY THAT THE MATERIAL MISSTATEMENT OF THE DISTRICT'S FINANCIAL STATEMENTS WOULD NOT BE PREVENTED, DETECTED OR CORRECTED ON A TIMELY BASIS.

A SIGNIFICANT DEFICIENCY IS A LOWER TYPE OF DEFICIENCY, AND THEN A VERBAL OR ORAL COMMENT ARE GOING TO BE AREAS OF IMPROVEMENT THAT WE DO DISCUSS WITH MANAGEMENT DURING THE COURSE OF OUR AUDIT.

AND SO THOSE ITEMS DO NOT GET BROUGHT TO THIS COMMITTEE, BUT TYPICALLY, IF WE DO GET REQUESTS FOR INFORMATION WITH REGARDS TO THOSE ORAL COMMENTS, WE PROVIDE THOSE OUTSIDE OF THIS TIME FRAME. ALL PRIOR YEAR RECOMMENDATIONS WERE IMPLEMENTED DURING THE COURSE OF THE FISCAL YEAR.

AND SO WE DO FOLLOW UP ON THOSE ORAL COMMENTS OR AREAS OF IMPROVEMENT TO ENSURE THAT THERE HAS BEEN SOME MOVEMENT WITH REGARDS TO THAT OR THERE HAS BEEN A RECONCILIATION WITH REGARDS TO THOSE ITEMS. AND SO ALL PRIOR YEAR RECOMMENDATIONS WERE IMPLEMENTED DURING THE COURSE OF THE YEAR.

SIGNIFICANT RISK WITH REGARDS TO THIS ENGAGEMENT MANAGEMENT OVERRIDE OF CONTROLS THAT'S PERVASIVE.

IT'S GOING TO BE AT EVERY SINGLE AUDIT THAT WE DO COMPLETE.

AND THEN OUTSIDE OF THOSE YOU KNOW, MANAGEMENT OVERRIDE OF CONTROLS THE RISK OF FRAUD IN REVENUE RECOGNITION WITH REGARDS TO THE FOUNDATION, SCHOOL PROGRAMS AS WELL AS GRANT FUNDING. THOSE ARE TWO AREAS IN WHICH WE SPEND A LOT OF TIME ENSURING NOT ONLY THE INFORMATION THAT'S BEING SUBMITTED TO TEA IS APPROPRIATE, AND THERE HASN'T BEEN ANY POTENTIAL AREAS OF FRAUD.

BUT ON THE GRANT SIDE, LOOKING TO ENSURE THAT THE FEDERAL GRANTS ARE BEING EXPENDED IN CONJUNCTION WITH THE ELIGIBLE USES THAT HAVE BEEN SET FORTH. THIS YEAR, THE DISTRICT DID IMPLEMENT GASB STATEMENT NUMBER 101.

PREVIOUSLY, THE DISTRICT WOULD HAVE HAD A SMALL LIABILITY WITH REGARDS TO THE VALUE OF LEAVE BENEFITS THAT ARE BEING PAID OUT WITH IN CONJUNCTION WITH VACATION ACCRUALS.

BUT THIS YEAR THERE WAS A MUCH LARGER LIABILITY.

IT'S NOT ONLY ASSOCIATED WITH TERMINATION OR PAYMENTS THAT ARE OCCURRING DURING TERMINATION, BUT IT'S GOING TO BE THOSE TYPES OF ACCRUALS THAT ARE ACCUMULATING AND THAT WOULD BE UTILIZED OVER THE COURSE OF SOMEBODY'S TERM AT THE DISTRICT. SO WHEN YOU'RE LOOKING AT THIS ONE, IT'S ONLY GOING TO BE LOCATED ON THE GOVERNMENT WIDE FINANCIAL STATEMENTS.

AND SO IT IS A LIABILITY THAT'S BEEN SITTING OUT THERE.

YOU KNOW, GASB HAS OVER THE COURSE OF THE PAST SEVERAL FISCAL YEARS, BEEN IMPLEMENTING NEW STANDARDS THAT HAS PLACED LONG TERM LIABILITIES ON THOSE GOVERNMENT WIDE STATEMENTS, STARTED OUT WITH THE PENSION LIABILITIES AND OTHER POST-EMPLOYMENT BENEFIT LIABILITIES, THEN MOVED ON TO LEASES AND SUBSCRIPTION BASED IT ARRANGEMENTS AND THE LIABILITIES ASSOCIATED WITH THOSE MULTI YEAR CONTRACTS.

AND THEN NOW WITH COMPENSATED ABSENCES EVEN THOUGH THESE ARE NOT GOING ARE GOING TO BE SETTLED THROUGH NON-CASH MEANS.

GASB HAS DECIDED THAT IT'S IMPORTANT TO INCLUDE THOSE LIABILITIES ON THE SET OF FINANCIAL STATEMENTS.

REQUIRED COMMUNICATIONS. I WON'T GO THROUGH ALL OF THESE INDIVIDUALLY, BUT THE MAIN THING TO KNOW IS THAT WE'RE REQUIRED TO REVIEW SIGNIFICANT ACCOUNTING POLICIES AND REVIEW THOSE SIGNIFICANT ESTIMATES WITH REGARDS TO THE FINANCIAL STATEMENTS, REVIEW ANY UNUSUAL TRANSACTIONS WHICH THERE WERE NONE, NO SUSPECTED FRAUD, AND NO DIFFICULTIES THAT WERE ENCOUNTERED DURING THE COURSE OF THE AUDIT.

NO DISAGREEMENTS WITH MANAGEMENT. WE DO REQUIRE THAT MANAGEMENT INCLUDE OR SIGN A REPRESENTATION LETTER WITH REGARDS TO THE AUDIT ITSELF THAT'S ADDRESSED TO US, AND IT STATES THAT NO INFORMATION HAS BEEN WITHHELD FROM US DURING THE COURSE OF THE AUDIT. THERE WAS NO CONSULTATIONS WITH OTHER ACCOUNTANTS AND NO ISSUES THAT NEED TO BE BROUGHT TO THIS COMMITTEE.

I'M GOING TO TURN IT OVER TO CLAIRE SO SHE CAN GO THROUGH THE FINANCIAL HIGHLIGHTS. THE NEXT FEW SLIDES JUST GO OVER YOUR FINANCIAL HIGHLIGHTS IN A LARGE

[00:45:08]

YOUR LARGEST REVENUE. OH, THIS IS YOUR FUND BALANCE. YOUR LARGEST PIECE OF YOUR FUND BALANCE IS CONSIDERED UNASSIGNED.

SO THAT IS A FUND BALANCE THAT YOU HAVE TO BE ABLE TO USE IN ACCORDANCE TO YOUR DISCRETION.

THE TINIEST PIECE, YOUR NON SPENDABLE THAT IS, HAS ALREADY BEEN SPENT AS FAR AS INVENTORY OR PREPAID EXPENSES ALREADY BEEN SPENT.

AND THEN THAT NEXT PIECE IS CONSIDERED UNASSIGNED.

SO IT'S BEEN ASSIGNED BY MANAGEMENT FOR CERTAIN USES.

YOUR FUND BALANCE FOR YOUR GENERAL FUND TOTALED 971.4 MILLION, WHICH IS A DECREASE OF 63.5 MILLION.

AND THAT WAS JUST DUE TO EXPENDITURES OUTPACING YOUR REVENUES THROUGHOUT THE YEAR OF 68.3 MILLION.

THERE WERE ALSO PROCEEDS RELATED TO THE RIGHT TO USE SUBSCRIPTION BASED IT ARRANGEMENTS OF 3.8 MILLION PROCEEDS RELATED TO RATES, USE LEASE ASSETS OF 0.4 MILLION AND THEN PROCEEDS RELATED TO THE SALE OF PROPERTY OF 4.5, AND THEN NET TRANSFERS OUT OF 3.9 MILLION.

YOUR UNASSIGNED FUND BALANCE AND YOUR GENERAL FUND DID DECREASE BY 40 MILLION TO 635 MILLION, WHICH WAS APPROXIMATELY. ALSO, THAT TOTAL 635 MILLION WAS 35.3% OF YOUR GENERAL FUND EXPENDITURES.

AND THEN YOUR ASSIGNED FUND BALANCE DECREASED 25.5 MILLION TO 311.4 MILLION.

AND THAT WAS PRIMARILY DUE TO FUND CONTINGENCIES RELATED TO THE FEDERAL AND STATE GRANTS IMPACT AND ANTICIPATED FUTURE DEBT RELATED COSTS, AND THEN ANTICIPATED CAPITAL EXPENDITURES AND THEN FUTURE ENCUMBRANCES THAT WILL BE CARRIED FORWARD FOR FISCAL 26.

IN REGARDS TO YOUR BUDGET AND YOUR BUDGET AND ACTUAL ON THAT GENERAL FUND, YOUR GENERAL FUND, ACTUAL REVENUES EXCEEDED YOUR BUDGETED REVENUES BY 34.4 MILLION DUE TO THREE MAIN REASONS YOUR INVESTMENT EARNINGS AND AN INCREASE IN TOTAL TAX COLLECTIONS WERE GREATER THAN EXPECTED. THERE WAS MORE FUNDING ANTICIPATED FOR THE HOLD HARMLESS AND TRS ON BEHALF, WITH 7.7 MILLION MORE THAN ANTICIPATED. AND THEN THOSE WERE OFFSET BY YOUR PAYROLL COSTS.

AND THEN ALSO YOUR FEDERAL REVENUE DID FALL SHORT OF BUDGET BECAUSE THE SHAR'S REVENUE WAS NOT RECEIVED, APPROXIMATELY 13.5 MILLION STILL NOT YET RECEIVED, AS THE DISTRICT IS STILL NEGOTIATING WITH THE HHSC.

AND THEN YOUR GENERAL FUND BUDGETED EXPENDITURES EXCEEDED ACTUAL EXPENDITURES BY 99.5.

AND THEN YOU HAD A FAVORABLE BUDGET VARIANCE OF 145.9 MILLION.

YOUR DEBT SERVICE FUND HAD A TOTAL FUND BALANCE OF 373 MILLION, OF WHICH 287.1 IS RESTRICTED FOR THE PAYMENT OF THOSE FUTURE DEBT SERVICE REQUIREMENTS.

THAT DEBT SERVICE FUND BALANCE DID INCREASE DUE TO THE TAX LEVY FROM 1.71 BILLION TO 1.85 BILLION DURING THE YEAR.

AND THEN ALSO THERE WAS TAXABLE VALUE GROWTH DURING THE YEAR OF 10.24%.

YOUR CAPITAL PROJECTS FUND BALANCE TOTALED 723.8 MILLION.

AND THAT WAS DUE TO PRIMARILY ON THE CAPITAL PROJECTS.

SORRY. YOUR CAPITAL PROJECTS FUND BALANCE. THERE WAS AN ISSUANCE OF MULTI-MODAL UNLIMITED TAX SCHOOL BUILDING BONDS SERIES 2025 A AND UNLIMITED TAX SCHOOL BUILDING AND REFUNDING SERIES 2025 B. AND THEN YOUR NON-MAJOR GOVERNMENTAL FUNDS CONSISTED.

THEY CONSIST OF YOUR SPECIAL REVENUE FUNDS. THOSE FUNDS HAD A TOTAL FUND BALANCE OF 27.3 MILLION.

AND THAT WAS A DECREASE FROM PRIOR YEAR OF 1.7 MILLION, MOSTLY DUE TO DECREASES IN REVENUE FROM YOUR FOOD SERVICE FUND.

AND THAT'S IT ON YOUR FINANCIAL HIGHLIGHTS. SO WE'LL TURN IT OVER TO YOU ALL FOR QUESTIONS.

THANK YOU FOR THE OVERVIEW AND SUMMARY. AND I'LL SEE IF MY COLLEAGUES HAVE ANY QUESTIONS.

NO. I HAVE A QUICK QUESTION AND CIRCLING BACK AROUND TO THE SINGLE AUDIT.

SO I KNOW YOU PERFORMED THE PROCEDURES BASED ON THE DRAFT COMPLIANCE SUPPLEMENTS.

SO THERE IS A POSSIBILITY THAT WHEN THE SUPPLEMENTS COME OUT, THAT THERE COULD BE REQUIREMENTS OR CHANGES THAT MAY NECESSITATE ADDITIONAL TESTING. YEAH. THAT'S CORRECT. SO WE'LL ONCE THE FINAL COMPLIANCE SUPPLEMENT DOES COME OUT, WE'LL GO THROUGH THE PROCESS OF ENSURING THAT THERE HAVEN'T BEEN ANY CHANGES THAT WOULD REQUIRE ADDITIONAL TEST WORK.

BUT OF COURSE, WE'RE UNSURE OF WHETHER OR NOT THERE WILL BE.

WE'VE BEEN TOLD THAT THE COMPLIANCE SUPPLEMENT, AS IS THE DRAFT FORM, WILL BE THE FINAL ONE.

BUT UNTIL YOU'RE ABLE TO ACTUALLY REVIEW THAT I WOULDN'T BE ABLE TO SAY WITH 100% THAT WE WON'T HAVE TO DO ADDITIONAL TEST WORK. THANK YOU. TRUSTEE FOREMAN. JUST A COUPLE OF QUESTIONS.

HOW LONG HAS WEAVER BEEN DOING THE OUTSIDE AUDIT FOR DALLAS ISD? SO OUR FIRST YEAR WAS 2015. 2015? YES. SO TEN YEARS?

[00:50:06]

YES. WE HAVE IN THE PAST SO THAT THE TRUSTEES HAVE AN UNDERSTANDING, BECAUSE USUALLY IN YOUR AUDIT, YOU NEVER FIND A DEFICIENCY WITH THE DISTRICT, AND THAT'S GOOD.

BUT THERE ARE AREAS OF IMPROVEMENT THAT THE TRUSTEES NEED TO KNOW AND UNDERSTAND.

YES. WE CAN SEND THAT TO YOU. THANK YOU. THANK YOU, TRUSTEE FOREMAN.

I HAVE A QUICK QUESTION. HOW LONG HAVE YOU BEEN PARTNER ON THE ENGAGEMENT AND WHAT'S THE TURNOVER OF THAT TIMING? YEAH. SO I HAVE BEEN THE PARTNER OF THIS ENGAGEMENT SINCE 2020.

OKAY, SO THIS WILL BE MY FIFTH YEAR. OKAY. ALL RIGHT.

THANK YOU. OH. TRUSTEE CURRIE. I JUST WANT TO TAKE A MOMENT TO JUST SAY A CLEAN AUDIT REPORT IS ALWAYS A GOOD THING.

AND SO THANK YOU, CHIEF RAMOS, FOR YOUR TEAM.

AND THANK YOU FOR YOUR WORK HELPING US MAKE SURE THAT WE'RE BEING GOOD STEWARDS OF THE RESOURCES THAT HAVE BEEN GRACIOUSLY PROVIDED TO US BY THE TAXPAYERS AND HOPEFULLY USING THOSE FUNDS TO THE ABSOLUTE BEST WE CAN FOR KIDS.

AND THAT'S REFLECTED IN THE GOOD WORK THAT COMES OUT OF THIS AUDIT.

AND SO I JUST WANT TO MAKE SURE WE TAKE A MOMENT TO ACKNOWLEDGE YOU AND YOUR TEAM FOR DOING THAT.

I CERTAINLY WOULD LOVE TO SEE AS WELL THE AREAS OF IMPROVEMENT. AND IF WE COULD PUT THAT IN THE TRACKER, THAT'D BE USEFUL, BECAUSE IT'S ALWAYS GOOD TO KNOW WAYS IN WHICH WE CAN ALWAYS IMPROVE. BUT A CLEAN AUDIT REPORT IS ALWAYS A GOOD THING.

SO GOOD. THREE CHEERS FOR A CLEAN AUDIT REPORT, CHIEF RAMOS, ANYTHING YOU'D LIKE TO ADD OR HIGHLIGHT? APPRECIATE THE WORDS OF ENCOURAGEMENT. IT TAKES A TEAM EFFORT.

NOT ONLY THE FINANCE TEAM, BUT ALSO THIS IS A HUGE UNDERTAKING.

IT'S MULTIPLE DEPARTMENTS WORKING TOGETHER. WE HAVE TO MEET DEADLINES.

AND SO I JUST APPRECIATE ALL THE TEAM WORKING TOGETHER TO GET THIS UNDERTAKING DONE.

EXCELLENT. THANK YOU. THANK YOU ALL FOR THE REPORT.

DO I HAVE A MOTION TO REVIEW AND RECOMMEND TO THE FULL BOARD OF TRUSTEES APPROVAL OF THE ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30TH, 2025. SO MOVED. SECOND, IT'S BEEN MOVED BY TRUSTEE CURRIE AND SECONDED BY TRUSTEE FOREMAN THAT WE REVIEW AND RECOMMEND TO THE FULL BOARD OF TRUSTEES APPROVAL OF THE ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30TH, 2025.

ALL THOSE IN FAVOR, PLEASE CAST YOUR VOTES BY RAISING YOUR HANDS.

ANY OPPOSED? MOTION PASSES THREE ZERO. NEXT UP, SECTION 8.2. WE ARE GOING TO CONSIDER AND TAKE POSSIBLE ACTION TO ACCEPT AND MAKE FINAL INTERNAL AUDIT REPORTS.

DO I HAVE A MOTION TO ACCEPT AND MAKE FINAL INTERNAL AUDIT REPORTS? AND I'M GOING TO START I'M GOING TO SEPARATE OUT I GUESS.

DO I NEED TO SEPARATE OUT THE ONE IN CLOSED SESSION VERSUS THE OPEN SESSION ONES.

YOU SHOULDN'T BECAUSE THE CLOSED SESSION YOU ALL DIDN'T TAKE ANY ACTION.

SO ONCE YOU COMPLETE THESE THEY WILL BE THEY'LL REPORT ON EACH REPORT AFTER THE MOTION IS ON THE FLOOR.

AND YOU'LL BE VOTING ENTIRELY ON ALL OF THOSE REPORTS.

EXCELLENT. SO LET ME CLARIFY AND JUST SAY THAT AGAIN THEN.

DO I HAVE A MOTION TO ACCEPT AND MAKE FINAL INTERNAL AUDIT REPORTS? I MOVE TO ACCEPT INTERNAL AUDIT REPORTS IDENTIFIED AS ONE, TWO AND THREE.

WHICH IS ALL OF THEM. SECOND, IT'S BEEN MOVED BY TRUSTEE CURRIE AND SECONDED BY TRUSTEE FOREMAN THAT WE ACCEPT AND MAKE FINAL ALL THREE INTERNAL AUDIT REPORTS. AND NOW IS THERE A DISCUSSION? TRUSTEE WEINBERG, TRUSTEES, I'D LIKE TO INTRODUCE SAM WILSON.

HE'LL BRIEF THE FACILITIES USE AGREEMENT AUDIT.

AND TRUSTEE WEINBERG. TRUSTEES. IN THIS AUDIT, WE LOOKED AT THE PROCESSES FOR IMPROVING, APPROVING, MANAGING AND MONITORING FACILITY USE AGREEMENTS TO ENSURE COMPLIANCE WITH POLICIES, EQUITABLE ACCESS APPROPRIATE FEE COLLECTION AND PROTECTION OF DISTRICT RESOURCES. NO SYSTEMIC ISSUES REQUIRING MANAGEMENT RESPONSES WERE NOTED, AND I'D BE HAPPY TO ANSWER ANY QUESTIONS.

THANK YOU, MR. WILSON. TRUSTEES ANY COMMUNITY ADVISER LEWIS.

ANY QUESTIONS? I JUST HAVE A QUESTION. IT'S JUST FOR MORE SO MY UNDERSTANDING IN THE BACKGROUND, I SAW WHERE THERE WERE 268 REQUEST THAT RESULTED IN OVER 2200 EVENTS.

SO, I MEAN, I'M MAKING THE ASSUMPTION THAT IT MIGHT BE ONE REQUEST FOR MULTIPLE DAYS OR, BUT CAN YOU ADD A LITTLE CONTEXT AROUND THAT? YES. SO. YES. SO THERE WOULD BE MULTIPLE REQUESTS

[00:55:08]

YES. I HAVE A QUICK QUESTION. I NOTED IN THE REPORT IT SAYS THAT THERE ARE PROTOCOLS FOR SUBMITTING THE RENTAL REQUESTS IN THE 15 DAYS.

AND I WONDER IF THERE IS A PROTOCOL. THERE PROBABLY IS. IT JUST WASN'T LISTED HERE FOR RESPONSE TIME.

SO WHEN SOMEBODY SUBMITS A REQUEST TO USE A FACILITY, IS THERE A STANDARD BEST PRACTICE AMOUNT OF TIME IN WHICH THE AREA RESPONDS? I WOULD DEFER TO ORLANDO ON THIS. SO I CAN UNDERSTAND THE QUESTION SO THAT WE WOULD RESPOND BACK TO THEM. YAY OR NAY? IS IT? YAY OR NAY OR MAYBE.

SO WE TRY TO RESPOND, OBVIOUSLY BEFORE THE THE FIRST REQUEST DATE.

DEPENDING ON HOW FAR IN ADVANCE WE RECEIVE THE REQUEST, WE MAY PRIORITIZE A REQUEST WHERE THE EVENT IS GOING TO BE, YOU KNOW, COMING SOONER THAN PRIOR, BUT IT'S USUALLY DONE ON BASED ON WHEN WE RECEIVE THE REQUEST AND WE MAKE ADJUSTMENTS DEPENDING ON WHEN THE ACTUAL FIRST DATE OF USE IS COMING UP. THANK YOU.

YOU'RE WELCOME. TRUSTEE FOREMAN. SO, ORLANDO, HOW MANY OF THESE ARE ACTUALLY FOR MAYBE A FACILITY AND HOW MANY ARE ACTUALLY FOR MAYBE JUST A ROOM OR LIKE THE AUDITORIUM OR SOMETHING LIKE THAT. HOW MANY IS FOR A FACILITY BASIS VERSUS JUST A ROOM? FOR AN ENTIRE FACILITY? I DON'T HAVE THAT INFORMATION ON ME.

TRUSTEE FOREMAN BUT NORMALLY WHEN SOMEONE IS REQUESTING AN ATHLETIC FACILITY FOR THE ENTIRE FACILITY.

SO IF SOMEONE WANTED TO USE YOU KNOW, A STADIUM, IT WOULD BE FOR THE ENTIRE STADIUM.

AT THE SCHOOLS IS USUALLY BROKEN DOWN BY AUDITORIUM OR GYMNASIUM OR MAYBE BOTH.

BUT IT'S RARELY, VERY RARELY IS IT AN ENTIRE SCHOOL BEING USED.

RIGHT. AND THAT'S THE REASON I'M ASKING THE QUESTION.

BECAUSE THERE IS A DIFFERENCE IN I GUESS THE OTHER THING IS THAT YOU AND I HAVE HAD CONVERSATIONS ABOUT THE PROCESS, AND THERE HAVE BEEN SOME COMMUNITY CONCERNS ABOUT THE PROCESS.

AND WAS THAT TAKEN INTO CONSIDERATION AS WE WENT THROUGH THIS AUDIT IN TERMS OF LOOKING AT HOW THE COMMUNITY PERCEIVES DALLAS ISD IN TERMS OF LEASING OUT OUR FACILITIES. DO WE DO ANY CUSTOMER FEEDBACK? NO, WE WE DIDN'T LOOK AT ANY CUSTOMER FEEDBACK PER SE.

WE LOOKED AT MORE OF THE PROCESS OF FACILITY USE AGREEMENTS.

SO THE PROCESS SHOULD BE AND I SEE BRENT OVER THERE LOOKING AT ME REAL HARD.

THE PROCESS SHOULD BE SOMEWHAT USER FRIENDLY IN REGARDS TO HOW WE HANDLE THE PUBLIC'S BUILDINGS.

AND SO THERE HAVE BEEN SOME CONCERN. AND ALTHOUGH IT'S NOT IN THIS AUDIT, I DO THINK THAT MAYBE JUST SOME SUBSET OF TALKING TO A FEW OF THE PEOPLE WHO TRIED TO LEASE OUR FACILITIES TO TRY TO UNDERSTAND WHERE WE MIGHT HAVE SOME MIGHT BE ABLE TO IMPROVE OUR PROCESS WOULD BE GOOD. CERTAINLY. MAY I ASK A QUESTION? DO YOU ALL DO A CUSTOMER SURVEY AFTER THE IS THAT SOMETHING THAT COULD BE DONE WITH THAT SATISFY YOUR QUESTION GOING FORWARD OR? NO, BECAUSE SOMETIMES THE INDIVIDUALS THAT ARE TRYING TO LEASE THE DISTRICT FACILITIES DON'T GET A CHANCE TO DO IT FOR NUMEROUS REASONS.

SO IT WOULD JUST HAVE FOR US TO HAVE SOME UNDERSTANDING OF WHAT THE CONCERNS MIGHT BE.

NOT SAYING THAT THE AUDIT IS INCORRECT, BUT HAVING AN UNDERSTANDING OF WHAT THOSE CONCERNS MIGHT BE.

AND THEN MAYBE THERE ARE SOME THINGS THAT WE CAN TWEAK IN THE FUTURE.

WE'LL CERTAINLY PUT SOME THOUGHT INTO THAT TRUSTEE FOREMAN. BUT I APPRECIATE THE COMMENT THAT'S A VERY GOOD IDEA.

THANK YOU. SOME PEOPLE DON'T THINK I HAVE GOOD IDEAS, BUT THANK YOU.

THANK YOU. TRUSTEE FOREMAN. AND TRUSTEE CURRIE.

YEAH. I'M SORRY. YEAH. YOUR LIGHT IS RIGHT BEHIND THE KLEENEX BOX, SO I CAN'T SEE WHEN YOUR LIGHT'S ON.

OKAY. TRUSTEE CURRIE, PLEASE. DID THIS AUDIT LOOK AT SOME OF OUR FACILITIES? PARTICULARLY EXTERNAL FACILITIES, NOT INTERNAL FACILITIES, BUT SOME OF OUR EXTERNAL FACILITIES, JUST BASED ON THE LAYOUT OR THE PARTICULAR LOCATION THE PUBLIC MIGHT HAVE ACCESS TO PLAYGROUNDS OR MIGHT HAVE ACCESS TO FIELDS OR OTHERS THAT THEY CAN JUST WALK ON TO.

[01:00:03]

BUT, YOU KNOW, IT'S ALSO POSSIBLE THEN, THAT GROUPS THAT ARE CHARGING OUTSIDE FUNDS, YOU KNOW SPORTS TEAMS, OTHER ORGANIZATIONS MIGHT TAKE ADVANTAGE OF THAT AND SIMPLY WALK ONTO THE FIELD RATHER THAN ENTERING INTO A RENTAL AGREEMENT.

ARE THERE ANY CONTROLS IN PLACE FOR MONITORING THAT? AND WAS THAT LOOKED AT AS PART OF YOUR AUDIT IN ANY WAY? WE DIDN'T LOOK AT THE POTENTIAL FOR PEOPLE JUST WALKING ONTO FIELDS, THINGS OF THAT NATURE.

AGAIN, WE FOCUS MORE ON THE PROCEDURES THAT WERE CURRENTLY IN PLACE.

BUT IF ORLANDO HAD ANY INSIGHT INTO WHAT MIGHT HAPPEN IF THAT WAS THE CASE, AND WE CAN DISCUSS THIS SINCE IT'S BEYOND THE AUDIT, IT DOESN'T HAVE TO BE PART OF THIS DISCUSSION, BUT IT'S SOMETHING I'M CURIOUS ABOUT SO.

FOR INSTANCE, IF THEY'RE RUNNING A SOCCER CAMP FOR FEES OR SOMETHING.

YEAH, I JUST. THERE'S SOME SCHOOLS NEAR MY AREA WHERE THERE LOOKS LIKE SOME VERY ORGANIZED TEAMS OUT THERE.

AND I IN MANY WAYS, I WANT TO ENCOURAGE THAT.

BUT AT THE SAME TIME, IF THEY'RE CHARGING FUNDS FOR THE USE OF PUBLIC FIELDS, THAT'S A DIFFERENT ANIMAL THAN JUST GOING OUT AND HAVING SOME FUN WITH YOUR FAMILY AND FRIENDS. AND SO I, YOU KNOW, I DON'T KNOW IF WE HAVE PROCESSES TO MONITOR THAT OR NOT.

I'M CURIOUS, BUT THAT'S SOMETHING WE CAN TALK ABOUT OUTSIDE OF THIS CONTEXT SINCE IT'S NOT PART OF THE AUDIT. THANK YOU, TRUSTEE CURRIE. COMMUNITY ADVISER LEWIS. OH, I JUST HAD A QUESTION.

DO YOU TRACK, LIKE YOU KNOW, APPROVAL OR DENIAL RATES OR DIFFERENT THINGS LIKE THAT? AND DO YOU KIND OF HAVE ANY METRICS LIKE FOR WHAT GOES INTO A REQUEST BEING DENIED OR ANY JUST STATISTICS AROUND THAT? BECAUSE, I MEAN, IF I WAS KIND OF HEARING TRUSTEE FOREMAN.

IF THERE ARE CONSTITUENTS THAT FEEL THAT THEY DON'T HAVE ACCESS OR THAT THERE IS SOME BARRIER TO THEM BEING ABLE TO, YOU KNOW, SUCCESSFULLY RENT OUT A SPACE FOR WHATEVER THEY NEED, IS THERE SOMETHING THAT WE HAVE IN PLACE THAT WE CAN SEE FROM, YOU KNOW, STATISTICS, METRICS OR NUMBERS THAT SUPPORT THAT AND MAY HIGHLIGHT A LARGER ISSUE.

WE USE AN ONLINE RENTAL SYSTEM AND IT CAPTURES ALL OF THAT INFORMATION.

NOW WHETHER WE CAN PULL OUT A REPORT THAT SPECIFICALLY TELLS US WHY PARTICULAR REQUESTS OR GIVES US YOU KNOW, NUMBERS IN TERMS OF HOW MANY REQUESTS WERE DENIED FOR A SPECIFIC REASON.

I DON'T KNOW THAT THE SYSTEM CAN DO THAT, BUT WE CAN CERTAINLY HONE IN ON EVERY INDIVIDUAL REQUEST TO DETERMINE WHY IT WAS APPROVED OR NOT APPROVED.

THANK YOU. YOU'RE WELCOME. ANY OTHER QUESTIONS ON THIS REPORT? OKAY. AND HAVE ONE MORE REPORT TO PRESENT CONTINUOUS AUDIT PAYROLL AND DISBURSEMENTS.

RICHARD SIU, ONE OF MY OTHER AUDIT MANAGERS.

GOOD AFTERNOON, CHIEF RAMOS AND TRUSTEES. OIA PERFORMS A SEMIANNUAL REVIEW OF PAYROLL AND DISBURSEMENT TRANSACTIONS. THIS REPORT COVERS TRANSACTIONS PROCESSED DURING THE SECOND HALF OF FY 24-25.

FOR PAYROLL SOME OF THE AREAS THAT WERE REVIEWED WERE FOR DUPLICATE EMPLOYEE PAYMENTS OVER TIME PAY TO UNAUTHORIZED EMPLOYEES.

AND FOR DISBURSEMENTS THE REVIEW INCLUDED DUPLICATE VENDOR PAYMENTS AND TIMELINESS OF VENDOR INVOICE PAYMENTS.

NO OBSERVATIONS WERE NOTED DURING THE REVIEW.

I'LL BE HAPPY TO TAKE ANY QUESTIONS. THANK YOU.

ANY QUESTIONS FROM THE COMMITTEE? TRUSTEE FOREMAN.

SO I'M LOOKING AT I GUESS THIS IS PAGE ONE WHERE IT TALKS ABOUT THE MILEAGE REIMBURSEMENT AMOUNT.

YES, MA'AM. OKAY. SO DOES THAT INCLUDE THE AUTOMATIC $6,000 THAT MANY OF THE EXECUTIVES RECEIVE FOR MILEAGE REIMBURSEMENT? OR IS THIS JUST FOR A PARTICULAR DEPARTMENT? THIS IS FOR EMPLOYEES WHO GO TO SEVERAL FACILITIES, AND THEN THEY HAVE TO SUBMIT IT TO THEIR EXPENSE REPORT.

OKAY. SO? SO THERE IS NOWHERE THAT WE CAPTURE THOSE DOLLARS BECAUSE SOME OF THOSE MANAGERS DO GO TO DIFFERENT FACILITIES.

NO, NOT IN THIS REPORT, MA'AM. NOT IN THIS REPORT.

WE'LL DO. MAYBE WE DO NEED TO TRY TO CAPTURE THAT SINCE IT'S MILLIONS OF DOLLARS THAT WE SPEND REGARDING THIS PARTICULAR ISSUE, AND I'VE ASKED SEVERAL QUESTIONS ABOUT IT.

AND EVERY TIME I ASK, I DON'T GET AN ANSWER THAT I'M SATISFIED WITH.

[01:05:01]

SO MAYBE WE CAN LOOK AT THAT SOMEWHERE ELSE. YES, MA'AM.

AND THEN I THINK I HAVE ONE OTHER QUESTION. SO ON THE OVERTIME AND SPS AMOUNT THAT'S ON PAGE FOUR OF SEVEN. WHAT IS THE SPS AMOUNT? SO SECONDARY PAYMENT SOURCE WOULD BE LIKE IF THEY'RE COMING FROM A DIFFERENT FUND. SO LIKE, LET'S SAY A JANITOR AT SKYLINE HAS TO GO TO A DIFFERENT CAMPUS THAT WOULD BE A DIFFERENT A DIFFERENT FUND SOURCE. SO WOULD THAT BE OVERTIME PAY OR JUST IF HE LEAVES ONE CAMPUS AND GOES TO ANOTHER CAMPUS? IT ALL DEPENDS. IF THEY MEET THE OVERTIME CRITERIA OF, YOU KNOW, IF IT'S OVER 40 HOURS, THEN ANYTHING OVER 40 HOURS IS CONSIDERED OVER TIME.

LET ME. SAY THAT AGAIN FOR ME. IF THEY WORKED 40 HOURS IF THEY WORKED OVER 40 HOURS DURING THE WEEK, THEN THAT WOULD BE CONSIDERED OVERTIME. SO IF JANITOR A IS WORKING AT KIMBALL HIGH SCHOOL AND WORKS HIS 40 HOURS, BUT THEN HE HAS TO GO TO SPRAGUE TO DO OVERTIME, THAT WOULD BE OVERTIME PAY.

YES, MA'AM. AND THAT'S $9 MILLION IS WHAT WE'RE PAYING OUT TO OUR EMPLOYEES FOR THAT.

FOR THAT'S OVER TIME AND SPS. OKAY. DO WE HAVE THE NUMBER OF EMPLOYEES? I KNOW WE GOT THE DOLLAR AMOUNT, BUT DO WE HAVE THE NUMBER OF EMPLOYEES THAT THIS AFFECTS? WE CAN GET IT TO YOU. COULD YOU DO THAT FOR ME? OKAY. THANK YOU. IT'S THE FIRST NUMBER IN THAT COLUMN, 02,246 EMPLOYEES WERE.

02,246 AND IT'S $9 MILLION IN SUPPLEMENT. SO THAT 2000 IS ONLY FOR SPS, THOUGH.

LET ME MAKE SURE I GOT IT RIGHT. 2,246 EMPLOYEES AND IT'S $9 MILLION.

IS THAT OVER A 12 MONTH PERIOD? NO, SIX MONTH PERIOD.

OH A SIX MONTH PERIOD? YEAH. BUT IF YOU GO TO PAGE THREE.

SO THE NUMBER OF EMPLOYEES FOR OVERTIME WAS 3,265.SO THEN YOU WOULD HAVE TO ADD THE NUMBER OF SPS EMPLOYEES TOO. SO THERE WILL BE LIKE A LITTLE BIT OVER 5,000 EMPLOYEES.

OKAY. THANK YOU. OKAY. ANY OTHER QUESTIONS. AND PLEASE GET THAT INFORMATION TO US.

SURE. JUST A QUICK CLARIFYING QUESTION. SO TABLES TWO AND THREE HAVE INFORMATION THAT SOME IS SINGULAR AND SOME IS COMBINED.

IS THAT RIGHT? CORRECT. OKAY. SO TABLE TWO HAS.

WELL IT'S CONTINUED. TABLE TWO CONTINUED ON PAGE FOUR.

GOT IT. GOT IT. SO SO THAT'S THE COMBINATION OF THE NUMBER AND THE $9 MILLION NUMBER IS THE OVERTIME FROM PAGE THREE PLUS THE SPS FROM PAGE FOUR. CLARIFYING. OKAY, THANKS.

ANY OTHER QUESTIONS? ALL RIGHT.

SO WITH DISCUSSION COMPLETED WE SHOULD VOTE. RIGHT? ALL IN FAVOR? AYE. ANY OPPOSED? MOTION PASSES THREE ZERO.

MS. FOREMAN, ARE YOU ABSTAINING? THAT'S IT. THERE'S ONE MORE ITEM. I THINK THAT WE WERE GOING TO HAVE DISCUSSION ABOUT.

HOW DO WE HANDLE IT IF IT'S NOT ON THE AGENDA? THE FOLLOW UP ITEM ON 8.3.

OKAY. SO WE CAN ADD THAT MAYBE TO THE NEXT AUDIT COMMITTEE MEETING IF IT'S NOT ON THE AGENDA.

OH, HERE IT IS. SORRY. TAKE IT BACK. ITEM 8.3.

THANK YOU. YEAH. CAN WE CONSIDER AND TAKE POSSIBLE ACTION TO EXTEND IMPLEMENTATION DATES FOR FOLLOW UP RECOMMENDATIONS? JUST KIDDING EVERYBODY SIT DOWN. [LAUGHTER] TRUSTEES.

THANK YOU. WE BROUGHT BACK. HOLD ON, HOLD ON.

DO I HAVE A MOTION TO EXTEND IMPLEMENTATION DATES FOR FOLLOW UP RECOMMENDATIONS?

[01:10:03]

THANK YOU SORRY TO JUMP THE GUN. WE HAVE THREE RECOMMENDATIONS WE BROUGHT BACK, PER THE REQUEST OF THE AUDIT COMMITTEE.

IF WE EXTEND PAST THE ORIGINAL IMPLEMENTATION DATE, I DON'T ARBITRARILY SAY THAT'S GOOD.

I LIKE TO HAVE THE DISCUSSION. THE COMMITTEE LIKES TO HAVE THE DISCUSSION.

SO THREE ISSUES RELATED TO THE ATHLETICS AUDIT WE COMPLETED TWO YEARS AGO OVER A LITTLE OVER TWO YEARS AGO.

AND THERE'S BEEN A LOT OF THERE WERE OTHER ISSUES THAT HAVE BEEN IMPLEMENTED.

THESE ARE STILL OUTSTANDING DUE TO ADDITIONAL TIME AND PROCESSES THAT THEY'RE STILL WORKING ON.

AND I'VE ASKED I BELIEVE LET ME GET THE TITLE ASSISTANT SUPERINTENDENT REYES TO COME AND AND MAYBE WALK YOU THROUGH OR TALK ABOUT, YOU KNOW, ALL THE EFFORTS THEY'VE DONE TO DATE.

AND I THINK THEY'RE GETTING VERY CLOSE. THANK YOU.

SO TO CLARIFY, THESE ARE RECOMMENDATIONS THAT WERE MADE IN THE MAY 23 AUDIT.

IS THAT RIGHT? YES, MA'AM. THAT WERE WERE IT'S TAKING A LITTLE MORE TIME TO IMPLEMENT THAN EXPECTED.

AND SINCE WE HAVE A FOLLOW UP REPORT AND IT'S TAKING MORE TIME, YOU'RE COMING BACK TO REPORT TO US.

JUST KIND OF WHAT WHAT IS TAKING MORE TIME AND WHAT TIME IS EXPECTED TO BE COMPLETION.

IS THAT CORRECT? YES, MA'AM. THANK YOU. GOOD AFTERNOON, TRUSTEES.

CHIEF RAMOS. THE RECOMMENDATIONS THAT ARE ON HERE ARE ITEMS THAT WE'VE TACKLED MANUALLY.

AND SO WHAT WE'RE DOING NOW IS TAKING ALL OF THIS AND WORKING WITH IT TO CREATE A SYSTEM THAT WILL INTEGRATE THE DIFFERENT PLATFORMS THAT WE USE IN ATHLETICS TO MONITOR ELIGIBILITY. SO WE HAVE, OF COURSE, POWER SCHOOL WHERE WE HAVE THE PRIMARY STUDENT INFORMATION, BUT THEN WE ALSO USE ACTIVATE. AND ACTIVATE IS WHERE WE UPLOAD PHYSICALS AND PARENT CONSENT FORMS AND THINGS LIKE THAT.

AND RIGHT NOW THE TWO SYSTEMS DON'T MEET IN THE MIDDLE, IF YOU WILL.

AND SO WE'RE WORKING WITH IT TO DEVELOP A WAY THAT WE CAN GET ANY TIME A STUDENT IS TRANSFERRING OR THERE'S SOMETHING MISSING FROM THEIR FILE, IT'LL GET SEND A NOTIFICATION TO THE SCHOOLS AND ALSO TO OUR COMPLIANCE PERSON.

GREAT. AND IS THAT ALL THREE OF THE ITEMS I GUESS IS THOSE ARE DIFFERENT PIECES OF THE PUZZLE.

RIGHT. THERE'S UPGRADE CHECK ELIGIBILITY. AND THEN THERE'S THE RESIDENCY ELIGIBILITY.

AND THEY KIND OF ALL GO TOGETHER. ALL RIGHT. TRUSTEES ANY QUESTIONS.

TRUSTEE CURRIE.

SO GIVE US THE REST OF THIS YEAR TO GET THAT COMPLETED.

OKAY. REAL QUICKLY. OH. TRUSTEE FOREMAN, PLEASE.

ONLY IF YOU WIN SOME CHAMPIONSHIPS. [LAUGHTER] HEY, WE'RE CLOSE ABOUT SIX MORE WEEKS.

I KNOW, ALL RIGHT. THANK YOU FOR THE DISCUSSION.

AND THANK YOU FOR THE UPDATE. AND I THINK THAT'S GREAT THAT HOPEFULLY YOU'LL GET THAT IMPLEMENTED IN THE NEXT YEAR AND SOME CHANGE.

ALL THOSE IN FAVOR, PLEASE CAST YOUR VOTES BY RAISING YOUR HAND TO EXTEND.

MOTION PASSES THREE ZERO. THANK YOU. IT IS 5:44, AND THE MEETING IS ADJOURNED.

* This transcript was compiled from uncorrected Closed Captioning.