Link

Social

Embed

Download

Download
Download Transcript

[00:00:01]

OKAY. GOOD MORNING, EVERYBODY.

TODAY'S AUDIT COMMITTEE MEETING IS NOW CALLED TO ORDER AS A SPECIAL MEETING OF THE BOARD OF EDUCATION.

[CALL TO ORDER]

THERE'S NOT A QUORUM. BUT FOR THE PURPOSES STATED IN THE DULY POSTED MEETING, NOTICE THE TIME IS 9:09 A.M..

THANK YOU. COMMITTEE MEMBERS PRESENT IN THE BOARDROOM ARE PRESIDENT CRUZ, TRUSTEE WADE AND MYSELF.

AND ARE WE JOINED BY ANYONE VIRTUALLY YET? NOOK AT THIS TIME.

[CLOSED SESSION]

THE COMMITTEE WILL ADJOURN INTO CLOSED SESSION AND THE BOARD SERVICES CONFERENCE ROOM UNDER CHAPTER 551 OF TEXAS GOVERNMENT CODE OPEN MEETINGS ACT SUBSECTIONS 551.004, 551.071, 551.072, 551.

073, 551.074, 551.076, 551.082, 551.0821, 55 1.083, 551.084 AND 551.089 SHOULD BOARD FINAL ACTION VOTE OR DECISION ON ANY MATTER CONSIDERED IN THE CLOSED SESSION BE REQUIRED.

SUCH FINAL ACTION, VOTE OR DECISION SHALL BE TAKEN AT THE OPEN MEETING COVERED BY THIS NOTICE.

UPON THE RECONVENING OF THIS PUBLIC MEETING OR AT A SUBSEQUENT MEETING PUBLIC MEETING OF THE BOARD UPON NOTICE THEREOF, THE COMMITTEE HAS ADJOURNED A CLOSED SESSION AT 9:10 A.M..

[INAUDIBLE] IN OPEN SESSION AT 10:20 A.M..

ALL RIGHT, LET'S START WITH AND I'M TAKING THESE OUT OF ORDER OF HOW THEY'RE LISTED ON HERE.

LET'S START WITH JUST A VERY BRIEF UPDATE OF THE 2021-2022 AUDIT PLANS.

[STATUS UPDATE FOR 2021 INTERNAL AUDIT PLAN & STATUS UPDATE FOR 2022 INTERNAL AUDIT PLAN]

OKAY, TEAM, THIS IS WHERE WE CURRENTLY ARE ON THE 2020-2021 AUDIT PLAN.

YOU CAN SEE THAT MOST OF IT IS COMPLETE.

THAT PORTION THAT IS IN BLUE REPRESENTS DRAFT REPORTS THAT ARE UNDER REVIEW AND SHOULD BE ISSUED SOON.

THIS IS ANOTHER PICTURE OF THE SAME THING.

YOU CAN SEE ONE THAT'S FULLY COMPLETE ON THE ON THE RIGHT AND AS WELL AS THE OTHER ONE.

AND THEN THERE ARE TWO WHERE THE DIFFERENCE IS DRAFT REPORTS IN THE REPORTING PHASE.

ANY QUESTIONS FROM COMMITTEE MEMBERS? I HAVE A QUESTION. WHY IS CONSTRUCTION SERVICES THE ONE WITH THE LEAST AMOUNT OF COMPLETE? IS THERE SPECIFIC CHALLENGES THAT THAT DEPARTMENT HAS THAT OTHER THE OTHER THREE AREAS DON'T HAVE? YES, THERE IS ONE VERY IMPORTANT CONCERN, BUT THAT'S A CLOSED SESSION TOPIC.

THANK YOU. ALL RIGHT.

2022, PLEASE.

AND HERE IS WHERE WE'RE REPRESENTED FOR 2022.

CAN YOU REMIND US AGAIN THE SPAN? IS IT. IS IT JULY 1ST TO JUNE 30TH? CORRECT. OKAY. THANK YOU.

YES. QUESTIONS FOR MY COLLEAGUES.

WHERE DO YOU ANTICIPATE BEING BY JUNE 30TH ON THIS?

[00:05:03]

GIVEN THE VACANCIES THAT WE HAVE, AS WELL AS THAT SITUATION THAT I JUST ALLUDED TO, IT'S GOING TO BE A STRETCH.

OKAY. WE'RE DOING OUR VERY BEST, SO I'M DOING MY VERY BEST.

BUT IT'S A STRETCH UNDER THOSE CONDITIONS.

OKAY. THANK YOU.

ALL RIGHT, SO THEN, DID YOU HAVE ANY QUESTIONS? SO THEN MOVING ON TO 20 23 AUDIT PLAN.

[PROPOSED 2023 AUDIT PLAN, STAFFING, AND BUDGET RESOURCES]

WHAT PAGE IS THAT ON TRUSTEE? I THINK IT WAS BEFORE.

IS IT EARLY? YEAH.

SORRY. I HAVEN'T BEEN ON THIS COMMITTEE FOR A COUPLE OF YEARS.

THERE USED TO BE LIKE A BINDER WITH TABS.

I DIDN'T HEAR THAT.

OH, OKAY. THANK YOU.

THANK YOU. OKAY.

ALL RIGHT. OKAY.

SO IF YOU COULD GIVE US A QUICK SO THIS IS THE PLAN YOU WILL BE BRINGING TO THE BOARD FOR APPROVAL.

IN WHICH MONTH? THIS MONTH.

OKAY. SO THE MAY AGENDA.

CORRECT. OKAY.

SO HERE ARE THE AUDITS THAT WE PLAN TO DO IN THE EDUCATION SPACE.

ALL OF THESE ARE CONSIDERED TO BE HIGH RISK AREAS.

AND WE DID HAVE SOME ISSUES IN THE POLICE REPORT THAT WE ISSUED YEARS EARLIER AND WE DECIDED IT'S IMPORTANT ENOUGH TO FOLLOW UP ON THAT ONE.

OF COURSE, YOU KNOW ABOUT THE ESSER AUDITS THAT TRUSTEES REQUESTED.

AND WE ALSO FEEL IT'S IMPORTANT ENOUGH TO FOLLOW UP ON OUR TEACHER APPRAISAL SYSTEM AGAIN.

ANY QUESTIONS FROM COMMITTEE MEMBERS? CHIEF BLACKWELL SO IS IT POSSIBLE FOR YOU TO SHOW US EVIDENCE OF HOW THIS CONNECTS TO THE RISK ASSESSMENT? I CAN PREPARE THAT AND PROVIDE IT TO YOU.

YEAH, I THINK THAT WOULD BE REALLY HELPFUL.

YOU KNOW, I THINK THERE'S CONCERNS THAT WE WANT TO MAKE SURE THAT WE ARE THAT THAT THE AUDITS ALIGNED TO THE RISK ASSESSMENT THAT'S DONE ANNUALLY AND THAT WE ARE MITIGATING THE HIGHEST RISKS.

AND SO I THINK GIVING US SOME EVIDENCE OF THAT WOULD BE REALLY HELPFUL.

OKAY. SO IF YOU SEE AT THE TOP OF THIS LIST MAGNET PROGRAMS, I PUT THAT IN THERE FOR THE REASONS THAT YOU JUST ALLUDED TO.

AS FAR AS RISK ASSESSMENT.

YES. AND BESIDES, WE HAVEN'T LOOKED AT MAGNET PROGRAMS SINCE I'VE BEEN HERE, AND THAT'S AN IMPORTANT PART OF THE DISTRICT.

SO WE NEED TO PROVIDE COVERAGE.

I THINK WE CAN ALWAYS REPLACE IT IF IT'S THE WILL OF THE BOARD, BUT JUST GIVE YOU A HEADS UP ON HOW IT GOT INTO THE LIST.

THANK YOU, GARLAND. A QUICK QUESTION ON THE EDUCATION PROGRAM, TEACHER APPRAISAL DEVELOPMENT SYSTEM.

WE'RE STARTING WITH A NEW TEACHER APPRAISAL SYSTEM.

AND SO YOU SAY THAT WE HAVE CARRYOVER AUDITS ON THAT, THE OLD ONE OR THAT WILL BE OLD ONE TAD'S AND THAT WE WILL BE CONTINUING INTO THE NEW YEAR WITH TAD'S.

CAN WE WHAT CAN WE LEARN FROM THAT IF WE'RE STARTING A NEW SYSTEM.

THAT'S A QUESTION I DON'T KNOW THE ANSWER TO TRUSTEE BUT WE DID FEEL THAT THE TOPIC ITSELF WAS IMPORTANT ENOUGH TO LOOK AT AGAIN.

AND THE RISKS RELATED TO TEACHER APPRAISAL SYSTEM WE FELT WAS HIGH ENOUGH TO INCLUDE THIS IN HERE.

BUT IF IT'S THE WILL OF THE BOARD TO TAKE THIS ONE OUT AND LET'S PUT SOMETHING ELSE AND WE WE HAVE PLENTY OF OPPORTUNITY TO DO THAT.

NO, IT'S VERY IMPORTANT.

I JUST WANTED TO SEE THAT WERE CARRYOVERS AND WE'D STILL NEED TO GO INTO THE NEW YEAR WITH THE NEW ONE ANYWAY.

THANK YOU. OKAY.

IN TERMS OF THE CARRY OVER AUDITS CHIEF GARLAND BLACKWELL YOU KNOW, THERE'S QUITE A FEW.

[00:10:06]

AND I JUST WONDER IF THOSE HAVE BEEN EVALUATED AGAINST THE NEW THE NEWEST RISK ASSESSMENT.

DO YOU FEEL LIKE THEY STILL TAKE PRECEDENCE OVER ANYTHING ELSE THAT WAS NAMED IN THIS YEAR'S RISK ASSESSMENT? I DO. BUT FOR SOME OF THOSE, THEY ARE RELATED TO A CLOSED SESSION TOPIC THAT WE WOULD NEED TO HAVE.

THANK YOU. OKAY.

MS. LOGAN, DO YOU HAVE ANY QUESTIONS? YEAH, JUST ONE MORE QUESTION ON THE CARRYOVER.

I SEE THAT THOSE ARE CARRIED OVER FROM LAST YEAR'S PLAN, BUT ANY POSSIBILITY THAT THEY'VE BEEN CARRIED OVER FROM A PRIOR YEAR TO LAST YEAR AND NOT COMPLETED, I'M JUST CURIOUS ABOUT HOW LONG AN AUDIT IS CARRIED OVER WHENEVER WE SAY IT'S A CARRYOVER.

IF I UNDERSTAND YOUR QUESTION CORRECTLY, MS. LOGAN THE CARRYOVERS FROM WHENEVER THE YEAR WAS THAT THE AUDIT WAS PERFORMED.

SO IF THE LAST TIME WE LOOKED AT TEACHER APPRAISAL WAS IN 2018 AND IT'S AN IMPORTANT ENOUGH TOPIC TO LOOK AT IT AGAIN, THEN IT ENDS UP IN THIS PLAN.

OKAY. I THOUGHT THE CARRYOVER WAS FOR THE AUDITS FROM LAST YEAR'S PLAN THAT YOU DIDN'T FINISH THAT NOW WE'RE GOING TO PUT ON THIS YEAR'S PLAN.

YEAH, THE CARRYOVER PORTION OF THAT IS TRUE.

BUT I'M TALKING ALSO ABOUT THE AUDIT ITSELF.

OKAY. JUST TO JUST PERHAPS TO ECHO I THINK JUDITH COMMENTS EARLIER IT MAY BE GOOD FOR FOR THESE AUDITS TO BE ABLE TO SEE HOW WHAT RISK THEY ARE TYING BACK TO IF THEY ARE TYING BACK TO AN ENTERPRISE RISK ASSESSMENT WITH THE RISK.

SO THAT MAY BE A JUST SOMETHING TO TO UPDATE.

THE BOARD FEELS THAT WE CAN GET THAT DONE BEFORE IT GOES TO THE BOARD FOR APPROVAL.

AND, MADAM CHAIR, IF I COULD JUST HAVE A MOMENT, I JUST WANT TO CLARIFY AND MAKE SURE THAT MR. BLACKWELL UNDERSTOOD MS. LOGAN'S QUESTION.

I THINK WHAT SHE WAS ASKING IS FOR EVERYWHERE THERE IS AN X ON THIS AUDIT PLAN ENDING INDICATING THAT IT IS SPECIFICALLY THAT PARTICULAR AUDIT IS A CARRYOVER AUDIT.

IS IT A CARRYOVER FROM THIS YEAR, LAST YEAR OR WHAT YEAR? WHAT AUDIT YEAR.

IT'S A CARRYOVER FROM THE LAST YEAR THAT WE WERE DOING THE AUDIT.

DOES THAT MEAN THAT IT'S A CARRYOVER FROM 21-22, 20-21, 20-19 20? I THINK I THINK THAT'S WHAT MS. LOGAN IS JUST TRYING TO FIGURE OUT.

SO WE CAN GET THAT INFORMATION FOR YOU BECAUSE IT'S GOING TO BE ONE OF THOSE TWO YEARS, SOME FROM LAST YEAR, SOME FROM NEXT AND THEN [INAUDIBLE] WANTS ON MY TEAM WOULD LIKE TO SAY SOMETHING. YES, THAT PARTICULAR AUDIT IS CARRIED FROM 21-2020 AND 20-21 IS FROM LAST YEAR. ACTUALLY, IT'S THE CURRENT CURRENT YEAR.

WE'RE STILL IN THE 20-21 AUDIT YEAR.

SO IT'S IT'S BEEN CARRIED OVER TWICE.

IS THAT WHAT YOU'RE SAYING? NO, I THINK THIS IS THIS IS FOR THE 2021 AUDIT YEAR AUDIT, THE TEACHER APPRAISAL. YES.

I THINK THAT'S WHAT THE QUESTION WAS FROM FROM MS. LOGAN IS OUR ARE THE AUDITS THAT ARE THAT HAVE AN X BY IT, IS THAT A ONE YEAR CARRYOVER OR A MULTI YEAR CARRYOVER . FOR THIS PARTICULAR FOLLOW UP AUDIT IS ONE YEAR CARRYOVER.

AND HER QUESTION WENT TO ANY PLACE YOU SEE AN X.

SO I UNDERSTAND THAT MIGHT BE SOMETHING THAT YOU HAVE TO FOLLOW UP WITH LATER.

I JUST WANTED TO CLARIFY THAT THAT WAS THE QUESTION BECAUSE I THINK I SAW MS. LOGAN KIND OF LOOK LIKE THAT IN ANSWER MY QUESTION.

SO I JUST WANTED TO MAKE SURE.

YEAH, THAT'S PERFECT.

YEAH, JUST I'M CURIOUS ABOUT WHEN WE SEE CARRYOVER, IS IT POSSIBLE THAT IT'S A MULTI YEAR CARRYOVER BECAUSE WE'VE CARRIED IT OVER FROM 20 -2022 AND YOU DIDN'T GET IT DONE IN 2020, SO NOW IT'S 21 AND THEN IN 22.

AND THE REASON I'M ASKING THAT IS BECAUSE I THINK IF THERE EVER ARE MULTI YEAR CARRYOVERS, THAT MAY BE A GOOD A GOOD ONE TO REALLY LOOK AT TO SEE DO WE STILL CARRY IT OVER OR DO WE DO WE CARE ABOUT THAT RISK? AND MAYBE WE DO.

I JUST WANTED TO MAKE SURE THAT WE'RE THINKING ABOUT THAT.

DO YOU HAVE ANY MORE QUESTIONS, MS. LOGAN? YOU CAN.

OKAY. I'M GOOD.

ALL RIGHT. AND THEN I WAS GOING TO ASK SUPERINTENDENT HOUSE, BUT WE'LL CIRCLE BACK TO THIS.

I WANT TO SEE IF HE HAS ANY QUESTIONS AS WELL.

[00:15:05]

SO I THINK I UNDERSTAND THE CARRYOVER AUDITS NOW.

AND I HEAR YOUR POINT, MS. LOGAN, OF EVALUATING, IS THIS SOMETHING THAT WE REALLY CARE ABOUT TO KEEP ON AS A CARRYOVER? MY BRAIN WAS GOING THE OTHER DIRECTION.

IS THIS SOMETHING THAT WE HAVEN'T PRIORITIZED THAT WE REALLY SHOULD HAVE PRIORITIZED? BUT FOR SOME OTHER REASON IT HAS BEEN CARRIED OVER FROM YEAR TO YEAR.

THAT MAYBE NEEDS TO BE LIFTED UP TO THE TOP.

BUT I HEAR YOUR POINT ABOUT EVALUATING THEM.

AND I WOULD LIKE TO HAVE A BETTER UNDERSTANDING.

YOU KNOW, I KEEP HEARING WILL OF THE BOARD.

I JUST LIKE TO CAUTION US COLLEAGUES AROUND THIS BEING SOMETHING THAT, YOU KNOW, WE'RE CURIOUS ABOUT THIS, WE'RE CURIOUS ABOUT THIS.

WE'RE CURIOUS ABOUT THIS, OR MAYBE THIS ONE ISN'T AS IMPORTANT.

I REALLY WANT IT TO ALL.

IT SHOULD ALL LEAD BACK TO WHAT IS OUR RISK.

AND SO I WOULD WANT TO KNOW, MR. BLACKWELL, AND WE'LL COME BACK WHEN MR. HOUSE COMES BACK OF WHAT IN HERE IS FROM THE ADMINISTRATION AND WHAT IS WHAT IN HERE IS FROM THE BOARD.

AND WHAT IN HERE IS REALLY COMING FROM THE RISK ASSESSMENT AND YOUR ANALYSIS OF WE NEED TO DO THIS AND WE NEED TO DO THIS AND WE NEED TO DO THIS TO BE THE NUMBER ONE PRIORITY FOR THE THINGS THAT WE GET DONE.

SO BUT WE CAN HAVE A LITTLE MORE THAT IN A MINUTE.

ANY OTHER QUESTIONS FOR MY COLLEAGUES ABOUT NEXT YEAR'S PLAN? AND ACTUALLY, I HAVE ONE MORE THING.

SO THIS IS GOING TO BE ON OUR AGENDA FOR MAY.

SO HOW WILL YOU USE ANY WILL YOU BE ABLE TO BEFORE THAT GOES ON THE AGENDA FOR THE BOARD, GIVE US THIS INFORMATION THAT WE'VE DISCUSSED HERE TODAY, BOTH THE EVIDENCE FOR THE RISK ASSESSMENT AND ALSO THE DATES OF THE LIKE, WHICH YEARS, YEAR OR YEARS WHERE THESE CARRYOVER AUDITS ON PREVIOUS PLANS BECAUSE SOME MIGHT BE A COUPLE OF YEARS.

OKAY. OKAY. JUST SO THAT, YOU KNOW, I PERCEIVED ALL THE AUDITS AND THE AUDIT PLAN TO BE IN A HIGH RISK CATEGORY.

WE DON'T WE'RE A SMALL TEAM.

WE DON'T HAVE THE BANDWIDTH TO LOOK AT LITTLE STUFF UNLESS IT'S NECESSARY.

FOR EXAMPLE, THE INVENTORY AUDITS, WE DO THOSE EVERY YEAR.

THE FINDINGS THAT COME OUT OF THAT ARE NOT THAT MATERIAL, BUT THE IMPORTANCE OF OUR INVENTORY IS IS RISK.

NO, NO, NO, I UNDERSTAND THAT.

BUT I'M SAYING, AS FAR AS THE BOARD SAYING THIS SHOULDN'T BE IN HERE, WE WANT SOMETHING INSTEAD.

I'M JUST SAYING TO MY COLLEAGUES, I WOULD CAUTION US AGAINST LETTING THAT BE A DRIVER FOR AN AUDIT PLAN.

AND I THINK THE OTHER THING THAT WOULD BE HELPFUL, BECAUSE WE HAVE A HISTORY OF NOT COMPLETING AN AUDIT PLAN.

IS THERE A RATING? AND MS. LOGAN, I'D BE CURIOUS FOR YOU TO CHIME IN ON THIS AS WELL.

IF THERE'S A VALUE TO BE DOING, WE SHOULD PRESUME THAT A FULL AUDIT PLAN WILL BE COMPLETED IN A YEAR.

I RESPECT THAT.

THEY'RE ALL RISKS.

IS THERE A WAY TO TRIAGE THEM OF LIKE NUMBER ONE, NUMBER TWO, NUMBER THREE? LIKE, NO MATTER WHAT, WE'RE GOING TO GET THE NUMBER ONES DONE.

WE WILL PROBABLY GET THE NUMBER TWOS DONE.

THE NUMBER THREES ARE THE ONES THAT, YOU KNOW, WERE WE'RE PLANNING TO GET THEM DONE.

BUT IF SOMETHING GETS IN OUR WAY THAT WE CAN'T GET THEM DONE FOR WHATEVER REASON, YOU KNOW, STAFFING CHANGES OR WHATEVER, THAT THESE ARE ONES THAT MIGHT WIND UP AS A CARRYOVER FOR FUTURE YEARS.

AND THAT WAY WE CAN SEE WHERE WHERE THE TIME IS GOING TO BE PRIORITIZED.

IS THAT SOMETHING THAT WOULD MAKE SENSE, MS. LOGAN, TO BE INCLUDED IN THIS? YEAH, I THINK ABSOLUTELY.

AND I THINK IT MAY HELP, YOU KNOW, IF WE TIE EACH AUDIT BACK TO A SPECIFIC RISK FROM THE RISK ASSESSMENT, THEN THAT RISK ASSESSMENT WILL TELL US THE KNOW.

IF IT'S A HIGH RISK, THEN YOU SHOULD ABSOLUTELY BE LOOKING AT HIGH RISKS FIRST.

OR MAYBE IT'S A MEDIUM RISK OR AND SO I THINK TYING IT BACK TO THE RISK ASSESSMENT WILL HELP, HELP OR MAYBE ORDER THE AUDITS AS WELL.

OKAY. ALL RIGHT.

YEAH. IF YOU COULD TRIAGE THEM.

WE'LL DO. CHIEF BLACKWELL, THANK YOU.

ALL RIGHT. SO NOW LET'S GO BACK TO THE REMAINDER

[00:20:02]

OF THE AGENDA ITEMS THAT ARE LISTED HERE.

SUPER QUICK DASHBOARD UPDATE PLEASE.

[DASHBOARD UPDATE]

[INAUDIBLE] DO YOU KNOW WHAT PAGE THE DASHBOARD IS ON? OKAY FOR THOSE WHO NEED IT IN 2018 IS WHEN WE EMBARKED ON THE PROCESS OF ESTABLISHING AN AUDIT DASHBOARD AT THE WILL OF THE AUDIT COMMITTEE.

THE DASHBOARD HAS EVOLVED SINCE 2018.

DIFFERENT PLATFORMS FOR EXAMPLE, WE WERE ON A SHAREPOINT BACKGROUND AND HERE THIS WEEK WE'VE MIGRATED FROM SHAREPOINT TO A SYSTEM CALLED POWER BI.

THAT IS THE NEW PLATFORM.

SCOTT MY UNDERSTANDING IS THAT THIS AND PRETTY MUCH UNDERSTANDING THAT IT IS AVAILABLE FOR USE NOW UNDER POWER BI.

SO THE BOARD HAS ACCESS TO THIS AND THE PUBLIC HAS ACCESS TO THIS, OR JUST THE BOARD.

THE BOARD AND THE PUBLIC HAVE ACCESS TO THIS FIRST FRONT PAGE.

THE PUBLIC CANNOT GO BEYOND THIS FRONT PAGE, WHICH IS MY UNDERSTANDING WHEN I AGREED WITH TRUSTEE BLUEFORD-DANIELS TO DELIVER THIS TO THE PUBLIC. MY INTENT WAS FOR IT TO NOT GO BELOW THIS PAGE BECAUSE THERE ARE SOME RISKY ITEMS BELOW THAT PAGE THAT SHOULD NOT GO TO THE PUBLIC. OKAY.

SO THIS PAGE THAT YOU'RE SHOWING US IS AVAILABLE TO THE PUBLIC AND THEY CAN ACCESS IT RIGHT NOW.

THAT IS MY UNDERSTANDING.

DOUG ON MY TEAM IS RAISING HIS HAND.

HELLO? YES.

THE POWER BI VERSION IS STILL BEING TESTED.

IN FACT, WE'RE ABOUT TO INVITE TRUSTEES TO TEST IT IN THE COMING WEEKS.

IT IS NOT AVAILABLE TO ANYONE OUTSIDE OF IT AND INTERNAL AUDIT CURRENTLY.

SO THERE IS THIS IS NOT LIVE FOR THE PUBLIC.

THAT'S CORRECT. OK SO YOU'RE GOING TO SEND THIS TO THE BOARD, THIS ONE PAGE THAT WE CAN TEST, AND THEN IT WILL BE AVAILABLE TO THE PUBLIC.

WHEN WILL IT BE SENT TO US TO TEST DRIVE AND WHEN THEN WHAT IS YOUR TIMELINE FOR IT TO BE AVAILABLE TO THE PUBLIC? WE'RE GOING TO BE APPROACHING VOLUNTEERS FROM THE TRUSTEE BOARD TO TEST IT OUT WITHIN THE NEXT WEEK OR SO.

AND BASED ON THE INPUT WE GET AND THE AMOUNT OF TIME IT TAKES TO ADDRESS THOSE CONCERNS WITH IT AND THE INTERNAL AUDIT WILL GET IT BACK TO YOU AFTER WE INCLUDE THOSE UPDATES.

SUBSEQUENT TO THAT, WE'LL ROLL IT OUT TO THE CABINET FOR THE SAME TYPE OF FEEDBACK.

AND THEN ONCE ALL THOSE HAVE BEEN ADDRESSED, THEN IT WILL BE READY TO GO LIVE.

CAN WE HAVE IT? CAN THE BOARD, OR AT LEAST THIS COMMITTEE FOR STARTERS, BE PROVIDED WITH A TIMELINE? THIS IS WHEN IT'S GOING TO BE SENT TO THE BOARD TO TEST DRIVE.

THIS IS WHEN IT'S GOING TO BE SENT TO THE CABINET TO TEST DRIVE.

AND THIS IS WHEN YOU'RE PLANNING TO SEND IT OUT TO THE PUBLIC.

AND WITH A DEADLINE BY WHICH THE BOARD NEEDS TO RESPOND TO YOU WITH QUESTIONS OR CONCERNS AFTER THEY TEST DRIVE IT AND SAME WITH CABINET.

YES, WE CAN MAKE THAT AVAILABLE.

MY TEAM AND SCOTT'S TEAM WILL WORK TOGETHER TO PULL THAT TOGETHER.

OKAY. IT JUST FEELS VERY OPEN ENDED.

AND I THINK IF WE CAN CLOSE IT UP AND HAVE SOME DEADLINES IN IT, THAT WOULD BE A HELPFUL THING FOR US.

OKAY WE'LL DO OKAY.

AND SO THIS WILL BE THE PAGE THAT'S AVAILABLE TO THE PUBLIC.

AND EVERYTHING BEYOND THIS WILL BE AVAILABLE ONLY INTERNALLY TO THE BOARD AND WHATEVER OTHER EMPLOYEES.

THAT IS CORRECT. BUT RIGHT NOW, THERE'S NO TIMELINE.

WE WILL CREATE THAT FOR YOU AND DELIVER IT TODAY.

[00:25:02]

ALL RIGHT. COLLEAGUES, ANY QUESTIONS? MS. LOGAN YOU HAVE ANY QUESTIONS.

OKAY. NO, I'M GOOD.

OKAY. IS THERE ANYTHING SORRY, MR. BLACKWELL. IS THERE ANYTHING ELSE IN THIS ITEM OTHER THAN IT'S STILL IN PROGRESS? NOTHING ELSE ON THIS ITEM, MADAM CHAIR.

OKAY. AND THEN SO STATUS UPDATE FOR OPEN AUDIT RECOMMENDATIONS.

[STATUS UPDATE FOR OPEN AUDIT RECOMMENDATIONS]

I ASKED MR. HOUSE OR HIS DESIGNEE TO GIVE US AN UPDATE ON THE PLAN FOR HOW THE OPEN FINDINGS ARE GOING TO GET ADDRESSED.

BECAUSE I THINK MY UNDERSTANDING IS WE HAVE A BACKLOG.

IS THAT CORRECT? TRUSTEE CRUZ.

IT IS. SO, MADAM CHAIR, WE'RE WORKING TOGETHER, MY TEAM WITH THE ADMINISTRATION'S TEAM TO TACKLE THE DASHBOARD PROBLEM.

AND YOU CAN SEE THE STATUS OF OUR RECOMMENDATIONS ON THIS CHART.

NOW, WE STARTED OUT WITH 471 WHEN THE PROBLEM WAS IDENTIFIED AS DOWN TO 420.

AND WE'RE CONTINUING TO MOVE FORWARD ON THAT.

EVERY DAY THAT NUMBER GOES DOWN A BIT.

OKAY. SO, MR. HOUSE, YOU'VE GOT A PLAN TO.

CATCH UP THIS BACKLOG.

I THINK WHAT'S IMPORTANT IS FOR MS. FOR GARLAND TO SHARE WITH HOW WE GOT TO THIS PARTICULAR POINT, BECAUSE HISTORICALLY WHAT IT LOOKS LIKE RIGHT NOW IS THAT THE ADMINISTRATION HAS 470 SOMEWHAT FINDINGS THAT HAVE NOT BEEN TAKEN CARE OF.

MY ADMINISTRATION IS NEW, AND SO WE'RE SO WAS THIS INSIGHT TO US.

WE GOT THIS INFORMATION WHEN GARLAND.

RECENTLY, SIR. WE GOT THIS INFORMATION RECENTLY.

SO THIS WAS OVERWHELMING, ESPECIALLY DURING BUDGET SEASON STRATEGIC PLAN.

AND THEN I GET A CALL FROM FROM GARLAND OVER WHAT BREAK, SPRING BREAK, SPRING BREAK THAT WE'RE BEHIND GOING ALL THE WAY BACK TO 2018 AROUND THESE PARTICULAR ISSUES.

WE WANT TO ADDRESS THEM, BUT THERE SHOULD HAVE BEEN MORE INSIGHT IN REFERENCE TO WHAT THIS LOOKS LIKE.

WHAT WE'RE LEARNING ALSO DURING THIS PROCESS IS THAT MANY OF THESE FINDINGS ARE NOT APPLICABLE TO TO WHERE WE ARE IN THE ADMINISTRATION RIGHT NOW AND THE WORK THAT WE'RE DOING. SO THAT'S A PART OF WHAT WE'RE GOING TO HAVE TO FOCUS ON AS WELL.

SO I'M NOT SURE IN REFERENCE TO THE WHY WE GOT THIS DURING SPRING BREAK, I THINK WE WERE ACTUALLY BOTH IN THE BUILDING AT THE SAME TIME WHEN HE SENT A MESSAGE.

AND BUT WE'RE GOING TO DO OUR BEST DURING THIS EXTREMELY TOUGH SEASON TO WORK WITH THE AUDIT DEPARTMENT TO TO DO WHAT'S NECESSARY TO GET WHERE WE NEED TO GO.

BUT I WANT IT MAKE SURE THAT EVERYONE UNDERSTANDS THAT WE JUST RECEIVED THE INSIGHTS.

AND IT'S VERY OVERWHELMING TO KNOW THAT THIS CAME TO US FOR THE FIRST TIME IN MY ESSENTIALLY TEN MONTHS IN BEING HERE. SO SUPERINTENDENT HOUSE, THIS QUESTION IS FOR YOU OR I GUESS MAYBE FOR BOTH OF YOU, CHIEF BLACKWELL AS WELL.

WHAT IS THE PROCESS GOING TO LOOK LIKE OR WHAT SYSTEM IS BEING IMPLEMENTED FOR FUTURE? OBVIOUSLY, THERE'S ALWAYS GOING TO BE OPEN FINDINGS, RIGHT? SO WHAT DOES THAT LOOK LIKE? YEAH. SO ONE THING THAT'S CHANGED THAT'S REALLY MATERIAL IS BEFORE THE EXPECTATION WAS THAT THE ADMINISTRATION WOULD UPLOAD EVIDENCE OF AUDIT RECOMMENDATION IMPLEMENTATION INTO THE DASHBOARD ITSELF DIRECTLY.

WHAT WE'VE DECIDED TO DO NOW IS LET'S INTERNAL AUDIT, TAKE OWNERSHIP WITH THAT, WORKING WITH THE ADMINISTRATION TO GET WHAT WE NEED AND WE WILL UPLOAD IT DIRECTLY INTO THE DASHBOARD OURSELVES.

THAT WAY, CHANGES IN ADMINISTRATION WILL THAT THAT FACTOR WILL MOVE BECAUSE PEOPLE COME AND GO.

BUT IF WE CAN CONSISTENTLY INTERNALLY MAKE SURE THAT THESE THINGS GET UPLOADED INTO DASHBOARD, WE THINK THAT'S ONE FACTOR THAT WILL HELP US TO GET ON THE PATH FORWARD THE WAY WE NEED TO BE. MS. LOGAN DO YOU HAVE ANY QUESTIONS? THE NEXT SLIDE.

MR. BLACKWELL ALSO HAS SOME STEPS BEING TAKEN.

[00:30:02]

SO WHAT I'M HEARING IS THERE WASN'T REALLY ANY MANAGEMENT OF THIS IN ALL THE TIME PREDATING YOU, MR. HOUSE, AND YOU'RE NOW WORKING WITH THE AUDIT DEPARTMENT TO CATCH US UP.

BUT IT SOUNDS LIKE THERE IS A PART OF THIS PROCESS INCLUDES SOMEONE HAVING OWNERSHIP AND THE AUDIT DEPARTMENT IS GOING TO BE OWNING.

AND THEN IF SOMETHING HASN'T BEEN UPLOADED FROM ADMINISTRATION OR COMPLETED BY ADMINISTRATION, THEN SOMEONE IN YOUR DEPARTMENT IS CHARGED WITH FOLLOWING UP ON THAT.

IS THAT CORRECT? IS THAT CORRECT, MY UNDERSTANDING, CORRECT.

FOR EACH OPEN ITEM WE PERFORM FOLLOW UP.

WE MEET WITH THE TEAM, WE HAVE THE CONVERSATION AND WE AGREE TO WHAT WE'RE GOING TO DO BY WHEN ARE WE GOING TO DO IT.

BUT THE FINAL PIECE IS GIVING US THE EVIDENCE, AND IF IT'S ACCEPTABLE TO US, WE WILL DIRECTLY UPLOAD IT INTO THE DASHBOARD IMMEDIATELY.

AND SUPERINTENDENT HOUSE, THANK YOU FOR I TOTALLY UNDERSTAND THAT YOU'RE NOT GOING TO CATCH UP ON ALL OF THESE OVERNIGHT AND THAT THERE'S A LOT OF OTHER THINGS GOING ON.

BUT I APPRECIATE THAT YOU WANT TO BE A PARTNER IN THIS PROCESS OF MAKING SURE THAT THE LOOPS ARE CLOSED.

SO THANK YOU. OKAY.

SO NEXT ITEM ESSER AUDIT OH NO LBB AUDIT RECOMMENDATIONS AND FOLLOW UP UPDATE, PLEASE.

[LEGISLATIVE BUDGET BOARD (LBB) AUDIT RECOMMENDATIONS FOLLOWUP UPDATE]

OKAY. DO WE HAVE A PAGE NUMBER TRUSTEE SOMEBODY? OKAY. HELLO.

OKAY. SO MY NAME IS DARLENE BROWN AND I'M WITH MCCONNELL JONES.

WE WERE ENGAGED TO PERFORM THE AUDIT OF THE LBB RECOMMENDATIONS.

AND WE HAVE WE'VE BEEN AUDITING THE RECOMMENDATIONS THAT HAVE BEEN SELF REPORTED AS COMPLETED.

THERE WERE 57.

THE CHALLENGES THAT WE'VE BEEN HAVING WITH GETTING THIS AUDIT COMPLETED IS WITHIN THOSE INDIVIDUAL RECOMMENDATIONS, THERE'S ALSO EMBEDDED ACTIONS THAT NEEDED TO BE TAKEN. SO IN TOTAL, THOSE 57 RECOMMENDATIONS HAVE MORPHED INTO 375 RECOMMENDATIONS.

NOT ALL OF THOSE DETAILS WERE PROVIDED TO STAFF AS THEY WERE GOING THROUGH.

AND THEN THE ADDITIONAL CHALLENGE WE'VE BEEN HAVING IS BECAUSE OF STAFF TURNOVER.

WE ARE NOT GETTING THE INFORMATION THAT WE NEED TO ASSERT WHETHER OR NOT THE RECOMMENDATION WAS FULLY IMPLEMENTED BECAUSE THE DOCUMENTATION IS JUST NOT THERE. SO THE NEXT SLIDE, PLEASE.

SO IN SUMMARY, OUT OF THE 57 RECOMMENDATIONS THAT WE'VE BEEN LOOKING AT, WE'VE WE'VE BEEN ABLE TO DETERMINE THAT 30 OF THESE RECOMMENDATIONS ARE FULLY IMPLEMENTED.

AND BY FULLY IMPLEMENTED, WE MEAN THE SPIRIT OF THE RECOMMENDATION ITSELF.

THERE HAS BEEN ACTION TAKEN TO GET TO THAT ROOT CAUSE AND MAKE SURE IT DOESN'T HAPPEN AGAIN.

14 HAVE BEEN PARTIALLY IMPLEMENTED.

11 WE'RE NOT ABLE TO ASSESS IT ALL BECAUSE THERE'S JUST NO DOCUMENTATION BEEN PROVIDED YET.

ONE WE HAVE DETERMINED WAS NOT IMPLEMENTED.

WE DID RECEIVE DOCUMENTATION AND IT DOES NOT ADDRESS THE ROOT CAUSE AND ONE THE DISTRICT HAS DECIDED NOT TO IMPLEMENT IT DUE TO COST.

OKAY. SO THE CHART THEN JUST LAYS OUT BY CHAPTER WHICH ONES OF THE RECOMMENDATIONS HAVE BEEN FULLY IMPLEMENTED VERSUS PARTIALLY OR NOT IMPLEMENTED.

AND THEN THE GRAY IS WHAT'S STILL IN PROGRESS.

AND THOSE RECOMMENDATIONS THAT WERE STILL IN PROGRESS ARE THE ONES THAT WE'RE NOT LOOKING AT UNTIL DISTRICT REPORTS THAT HAS BEEN COMPLETED AND IMPLEMENTED.

SO THE NEXT SLIDE IS REAL QUICKLY.

OF THE RECOMMENDATIONS THAT WE'VE BEEN ABLE TO REVIEW, WE ASSIGNED THE INTERNAL CONTROL EFFECTIVENESS RATING TO THEM.

SO OF THE 30 THAT WE BELIEVE ARE FULLY IMPLEMENTED, 14, WE THINK THAT THE CONTROLS OVER THAT PROCESS NOW ARE GENERALLY INEFFECTIVE, AND 16 OF THEM NEED SOME MINOR IMPROVEMENTS 4 NEED SOME MAJOR IMPROVEMENTS IN ORDER TO ADDRESS THE FINDING. AND AGAIN, THE 11 WERE NOT ABLE TO ASSESS.

SO IF WE HAVE ANY QUESTIONS, THEN I WILL BE HAPPY TO ANSWER THEM.

THE FINAL SLIDE IS JUST A BREAKDOWN OF THOSE 375 COMPONENTS OF THE RECOMMENDATIONS.

SO WHEN WE LOOK COMPONENT, COMPONENT 66 HAVE BEEN FULLY IMPLEMENTED AND 17 OF PARTIALLY AND WE'RE 162, WE DON'T WE DON'T KNOW BECAUSE OF LACK OF DOCUMENTATION.

[00:35:01]

SO OVERALL, THE DISTRICT HAS SOME WORK TO DO IN ORDER TO GET THESE IMPLEMENTED.

THANK YOU. SURE.

ANY QUESTIONS FROM MY COLLEAGUES? SO IN TERMS OF.

PLEASE REMIND ME OF YOUR NAME.

DARLENE. DARLENE.

I THINK WE'VE BEEN ON ZOOMS TOGETHER.

SO SORRY. WE'RE JUST ALL SEEING PEOPLE IN PERSON.

THE ONES THAT INADEQUATE DATA WERE PROVIDED.

WHERE WERE YOU LOOKING FOR THE DATA OR WHAT? WHERE WAS THE DATA BEING PROVIDED? AT FIRST, WE'VE BEEN WORKING WITH ERICA A LOT.

WE STARTED WITH HER.

AND THEN WHEN ERICA DIDN'T HAVE THE DATA BECAUSE IT WAS NOT PROVIDED, WE REACHED OUT TO INDIVIDUAL OWNERS OF THE RESPECTIVE FINDINGS OR RECOMMENDATIONS . BECAUSE THERE IS TURNOVER SOMETIMES THE OWNERS ARE THE SAME, SOMETIMES ARE NOT.

AND THEN OUR THIRD ATTEMPT WAS WE WE SUMMARIZED ALL ALL 375 OF THESE ACTION POINTS AND SENT THEM OUT TO ERICA TO DISTRIBUTE TO THE INDIVIDUAL OWNERS OF THESE RESPECTIVE CHAPTERS.

AND WE DID GET SOME INFORMATION BACK FROM THAT.

THEIR DEADLINE WAS MARCH 31ST AND I'M GOING TO SAY WE HAD FOOD SERVICE AND TRANSPORTATION AND ONE OTHER THAT PROVIDED SOME ADDITIONAL.

BUT STILL, THIS IS AS OF APRIL 10TH.

OKAY. APPRECIATE THAT.

THAT INFORMATION AND THAT INSIGHT.

I JUST WANT TO EXPRESS MY CONCERN OVERALL.

YOU KNOW, THIS IS SOMETHING THAT WE'VE BEEN AS A BOARD.

I MEAN, WHEN I CAME ON THE BOARD, THE LBB REPORT HAD JUST BEEN PUBLISHED, I THINK A MONTH OR TWO BEFORE THAT HAVE NOW BEEN ON THE BOARD ALMOST TWO AND A HALF YEARS AND JUST CONCERNED THAT WE STILL DON'T HAVE EVIDENCE OF THESE THINGS BEING IMPLEMENTED.

SO, MR. HOUSE, THAT'S REALLY A CONCERN, I THINK, DIRECTED TO YOU AND WOULD LIKE TO KNOW HOW WE CAN ADDRESS THIS.

AND LET ME PREFACE THAT WITH I KNOW THAT YOU'RE INHERITED THIS.

YES, IT'S DEFINITELY MINE WOULD NOT.

BUT BUT IT'S DEFINITELY SOMETHING THAT WE WE WILL WORK TOWARDS OR WHATNOT.

AS I INDICATED, THE EARLIER NOTIFICATION IS BETTER.

SO WE HAVE INSIDE INFORMATION AROUND WHERE THE PROBLEM IS.

AND OF COURSE, THIS IS YOU KNOW, IT'S NOT A NEW ISSUE.

THIS IS A HISTORIC ISSUE.

AND WE HAVE LOTS OF HISTORIC ISSUES IN HISTORY IN HISD, YOU KNOW, OUTSIDE OF AUDIT, INSIDE OF AUDIT.

BUT WE'RE GOING TO BE DOING OUR BEST TO ENSURE THAT WE HAVE SYSTEMS AND PROCESSES IN PLACE TO DO OUR PART.

THANK YOU. AND I WOULD, IF I WOULD LIKE AN UPDATE AT THE NEXT AUDIT COMMITTEE MEETING ON THESE FINDINGS.

THANK YOU. MS. LOGAN, DO YOU HAVE ANY QUESTIONS? YEAH, I JUST WANTED TO ASK IF THERE WAS A TIMELINE.

IT SOUNDS LIKE YOU'RE YOU'RE WORKING THROUGH THAT, BUT IT MIGHT BE GOOD TO BE ABLE TO SEE A TIMELINE AS WELL OR COMMIT TO A TIMELINE.

IS THAT FROM OUR SIDE OR FROM THE DISTRICT SIDE? FROM THE DISTRICT SIDE.

OKAY. SO I THINK THAT THIS IS A CHALLENGING PIECE BECAUSE EVERY LBB ITEM IS UNTO ITSELF WITH ITS OWN SITUATIONS. WE HAD A CONVERSATION YESTERDAY ABOUT THE DIFFERENCE BETWEEN AN LBB ITEM BEING COMPLETE VERSUS IMPLEMENTED, AND I THINK THAT WE NEED TO GET AS A TEAM FOCUSED.

AND I THINK MR. HOUSE AND I AGREED YESTERDAY TO TRY TO DO THAT, TO MAKE SURE THAT WHEN WE ADDRESS AN LBB ITEM, IT HAS ACTUALLY BEEN IMPLEMENTED.

MR. HOUSE.

CORRECT. THERE ARE SOME INSTANCES, AND I WANT TO BE VERY CLEAR ABOUT THIS.

THERE ARE SOME INSTANCES WHERE THE ADMINISTRATION WILL DISAGREE AROUND A RECOMMENDATION.

SO THERE'S A MAJOR DIFFERENCE BETWEEN A RECOMMENDATION AND WHETHER IT'S GOING TO BE ACTUALLY IMPLEMENTED OR NOT, BECAUSE IF WE DISAGREE AROUND WHETHER IT SHOULD BE IMPLEMENTED, THEN IT WILL SHOW IS IS NOT IMPLEMENTED.

ERICA, DO YOU MIND SHARING SOME SOME INSIGHT AS WELL IN TERMS OF WHERE WE ARE AT THE ADMINISTRATION AROUND THIS PIECE? YEAH, I CAN. YEAH, I CAN SHARE SOME CONTEXT, SO A BIT OF HISTORICAL CONTEXT AROUND THIS AUDIT.

SO WE RECEIVED THE REPORT FINDINGS IN NOVEMBER OF 2019 AND IT WAS REGARDING CALENDAR YEAR 18-19.

[00:40:01]

RIGHT. AND SO THE PURPOSE OF THOSE RECOMMENDATIONS OBVIOUSLY TO ENABLE US TO BE MORE OPERATIONALLY EFFICIENT AS WELL AS BUDGETARY.

BUT THE REPORT ITSELF, SO WHEN WE TALK ABOUT THE 375 EMBEDDED COMPONENTS THAT ARE THOSE RECOMMENDATIONS, WHAT'S EMBEDDED IN THERE ARE SAMPLE MODEL PRACTICES OR INDUSTRY STANDARDS OR BEST PRACTICES, BUT IT ISN'T ALWAYS DIRECTLY TRANSLATABLE ONE IN OUR BIG URBAN CONTEXT, BUT TWO IN THE WAY WE DO DECENTRALIZATION HERE.

SO FOR EXAMPLE, ONE OF THE RECOMMENDATIONS SPECIFICALLY TALKS ABOUT HOW WE ARE GOING, HOW WE NEED TO STANDARDIZE THE WAY THAT WE DO DISCIPLINE IN OUR SCHOOLS.

WELL, WE CAN SET PARAMETERS AND WE CAN WE HAVE AN ESTABLISHED CODE OF CONDUCT AND SOME OF THOSE THINGS.

RIGHT. BUT THE WAY THE PARTICULAR MAY BE MODALITY OR WAY THAT DISCIPLINE IS DONE ON THE CAMPUSES IS IS SUBJECT TO KIND OF THE LEADERS DISCRETION.

RIGHT. AND SO IT'S ALWAYS BEEN OUR INTENTION, THE WAY THAT WE'VE APPROACHED IT KIND OF HOLISTICALLY AS A DISTRICT IS THAT LBB REPORT WAS USED TO KIND OF DETERMINE SOME PRIORITY.

WE DETERMINE THE IMPLEMENTATION TIMELINE, WHICH WE REPORT OUT ON REGULARLY, AND THEN THE METHOD OF IMPLEMENTATION FOR EACH OF THOSE RECOMMENDATIONS.

WITHIN OUR UNIQUE CONTEXT, THE SAVINGS AS WELL ARE DEPENDENT ON HOW THAT OBVIOUSLY IS IMPLEMENTED.

AND I KNOW THAT YOU GUYS HAVE SEEN THAT.

SO I THINK THAT THE AUDIT IS BEING APPROACHED FROM THE PERSPECTIVE OF EACH OF THESE EMBEDDED COMPONENTS UNDER EACH RECOMMENDATION ARE THE WAY THAT WE SHOULD BE DOING IT.

AND THE TRUTH IS WE MIGHT NOT BE DOING IT IN THAT PRESCRIBED WAY OR MANNER WITHIN OUR CONTEXT OR ABLE TO WITHIN OUR CONTEXT.

SO I THINK WHAT WOULD BE HELPFUL, I KNOW WE HAVE THAT PAGE ON OUR WEBSITE.

YOU KNOW, THAT'S KIND OF LIKE AN OVERVIEW OF WHAT'S BEEN IMPLEMENTED.

I THINK WHAT WOULD BE HELPFUL IS IF SOMETHING IS NOT IMPLEMENTED.

LIKE YOU MENTIONED THE ADMINISTRATION DISAGREES OR FOR WHATEVER REASON, I THINK JUST STATING WHY, YOU KNOW, LIKE THIS TRANSPARENCY IS IS REALLY CRITICAL AS OPPOSED TO, YOU KNOW, THE PERCEPTION WOULD BE, OH, WE JUST DON'T WANT TO IMPLEMENT IT FOR WHATEVER REASON.

BUT I THINK THAT KIND OF CONTEXT IS REALLY HELPFUL.

SO ERICA, IF I REMEMBER CORRECTLY, THERE ARE 97 LBB ITEMS, THERE ARE 94, 94 TOTAL OK AND IT HAS A NUMBER OF 65 THROUGH 71, IF I REMEMBER CORRECTLY.

SO WE'RE WE'RE ADDRESSING THESE THINGS INCREMENTALLY.

HOWEVER, BASED ON THE INFORMATION WE GOT YESTERDAY, I THINK IT'S IMPORTANT THAT WE MODIFY OUR APPROACH TO MAKE SURE THAT WHEN WE LOOK AT IT, NOT ONLY IS IT COMPLETED FROM WHATEVER COMPLETION MEANS, BUT ALSO IMPLEMENT IT TO WHAT THAT MEANS AS WELL BECAUSE WE AGREE TO LOOK AT THEM WHEN THEY WERE COMPLETED.

I THINK WE NEED TO CHANGE THAT TO MAKE SURE THAT WE LOOK AT IT WHEN IT'S NOT ONLY COMPLETE, BUT IT'S BEEN IMPLEMENTED AS WELL BECAUSE THEN WE CAN ACTUALLY TEST IT TO SEE IF IT'S WORKING. DO YOU HAVE ANY MORE QUESTIONS? MS. LOGAN ARE YOU GOOD ON QUESTIONS ON THIS ONE? I HAVE A COUPLE OF THINGS.

MOST OF MINE HAVE ALREADY BEEN ADDRESSED.

I THINK WHAT I WOULD LIKE TO SEE IS A CONCRETE TIMELINE.

I GET THAT THIS IS GOING TO TAKE SOME TIME, BUT I OPEN ENDED THINGS YOU KNOW IN THE EXAMPLE I'M SITTING HERE IN MY HEAD WITH IS, YOU KNOW, DEFERRED MAINTENANCE ON MY HOUSE.

YOU KNOW, I NEED TO TAKE CARE OF THIS.

I NEED YEAH, IT'S ON MY LIST. IT'S ON MY LIST.

BUT UNLESS I SET AN ACTUAL NOTE, IT'S GOING TO BE TAKEN CARE OF BY THIS DEADLINE.

OR I'VE GOT A SERIES OF THINGS TO CATCH UP ON A SCRATCH FOR MY FLOOR BECAUSE THAT, YOU KNOW, IT JUST BECOMES A LITTLE OVERWHELMING AND IT JUST KEEPS GETTING PUSHED OFF.

AND SO I THINK HAVING A CONCRETE TIMELINE, THIS IS WHERE WITH PROGRESS MONITORING, IF YOU WILL, LIKE WE DO FOR OUR STUDENT LEARNING OUTCOMES WITH OUR GOALS TO SEE ARE WE ON TRACK TO GET TO THE LEVEL OF COMPLETION THAT WE ASPIRE TO ON THIS AND JUST WANT TO LIFT UP FOR EVERYBODY WHO PROBABLY ARE NOT AWARE THAT IS ACTUALLY A BOARD CONSTRAINT ON THE BOARD OF CONSTRAINT THREE THAT WE WILL NOT ALLOW FIVE YEARS TO PASS WITHOUT A LEGISLATIVE BUDGET BOARD REVIEW, WHICH MEANS IN A COUPLE OF YEARS, IF WE EMBARKED ON THIS IN 2018, 2019, WE'RE GOING TO BE COMING BACK UP ON THIS AGAIN IN A COUPLE OF YEARS. SO HAVING A USING THIS AS AN OPPORTUNITY TO GET A SYSTEM IN PLACE WITH THE ADMINISTRATION AUDIT SUPERINTENDENT HOWEVER YOU ALL INTERNALLY WANT TO FIGURE THAT OUT I THINK COULD BE BENEFICIAL.

[00:45:04]

SO WE'RE NOT HAVING THESE SAME CONVERSATIONS AGAIN AND HAVING LIKE WHERE WE HAVE NO IDEA IF SOMETHING'S BEEN IMPLEMENTED OR THE STATUS OR WHATEVER.

HAVING THAT SYSTEM I THINK WOULD ADD A LOT OF VALUE AND THEN BEING ABLE TO PROVIDE THESE REGULAR UPDATES TO THE BOARD AS WELL AS THE PUBLIC.

AND, YOU KNOW, JUST ECHOING WHAT WAS SAID, IF SOMETHING HASN'T BEEN IMPLEMENTED INTENTIONALLY, I THINK JUST HAVING A REASON WHY INCLUDED ON THAT IS A VALID.

AND I ALSO THINK WE KNOW THAT DIFFERENT COMPONENTS OF THIS WERE PROJECTED BY LBB TO YIELD A CERTAIN DOLLAR AMOUNT IN SAVINGS. I RECOGNIZE FOR A VARIETY OF REASONS.

IT MAY YIELD FEWER SAVINGS OR MAYBE IN SOME CASES MORE SAVINGS.

IN SOME CASES, MAYBE NOT AT ALL.

AND I THINK JUST INCLUDING A COMMENT TO THAT OF, HEY, IT WAS PROJECTED TO YIELD X NUMBER $500,000 I'M JUST MAKING UP NUMBERS, $500,000 IN SAVINGS.

IT ONLY SAVED US $400,000 AND HERE'S WHY.

I THINK THAT THAT IS HELPFUL FOR BOTH THE BOARD AND THE PUBLIC TO SEE.

AND I THINK THAT THIS AUDIT IN GENERAL BUT THIS SPECIFICALLY BECAUSE THE PUBLIC REALLY IS HOLDING US ACCOUNTABLE TO THIS IN A DIFFERENT WAY.

I THINK BECAUSE THERE WAS MORE CONVERSATION AROUND IT, IT'S GOING TO PRESUME THAT WE'RE NOT DOING CERTAIN THINGS.

AND I THINK IT WOULD REALLY HELP, ESPECIALLY AS WE MAY BE IN A YEAR OR SO, WANT TO DO A BOND TO SHOW WE REALLY HAVE USED THIS AND HOW WE'VE RESPONDED TO THOSE RECOMMENDATIONS AND THE TRANSPARENCY OF THAT I THINK COULD ADD VALUE FOR US WITH THE PUBLIC DOWN THE ROAD SO.

ALL RIGHT. AND MADAM CHAIR, IF I MAY COMMENT ON THIS AS WELL, GIVEN THE CONVERSATION YESTERDAY, I THINK IT'S IMPORTANT GOING FORWARD IF WE CAN GIVE US A STATUS BASED ON COMPLETE AND IMPLEMENTED.

BECAUSE MY UNDERSTANDING AND CORRECT ME IF I'M WRONG, BUT THERE IS A DIFFERENCE BETWEEN THE TWO AND IF IT SOUNDS TO ME THAT WE SHOULD WAIT UNTIL IT'S ACTUALLY IMPLEMENTED BEFORE WE TEST.

SO HE BRINGS UP A GOOD POINT.

SO IF YOU LOOK AT THE AT SOME OF THESE RECOMMENDATIONS, IN SOME CASES THEY'RE ASKING FOR THAT A PARTICULAR PROCESS BE SET UP.

RIGHT. THAT ADDRESSES X.

IT DOESN'T NECESSARILY SAY IT HAS TO BE IMPLEMENTED.

SO WE MIGHT DEVELOP THE PROCESS, BUT THE IMPLEMENTATION IS GOING TO HAPPEN IN AUGUST.

AND SO THAT'S THAT'S WAYS THAT THERE'S KIND OF THAT DIFFERENCE THAT YOU'RE SEEING BETWEEN IMPLEMENTED.

BECAUSE IF THE RECOMMENDATION ITSELF IS JUST ASKING ABOUT CLEANING UP OR TIGHTENING A PROCESS OR PROTOCOL AND THOSE SORTS OF THINGS, WE MIGHT DO THAT THEN START TO BUILD CAPACITY AROUND IT AND THEN LAUNCH IMPLEMENTATION.

SO THAT'S THAT'S ONE OF THOSE KIND OF DEFINITIONAL PIECES THAT WOULD BE HELPFUL.

AND MADAM CHAIR, I'M SURE WE'RE ABLE TO FOLLOW YOUR LEAD IN TERMS OF HOW YOU WANT US TO APPROACH THIS.

I SUGGEST THAT WE WAIT TILL NOT JUST COMPLETE, BUT IMPLEMENTED IF THEY'RE GOING TO IMPLEMENT IT.

BUT IF YOU WANT US TO JUST GO THROUGH COMPLETION, WE CAN DO THAT TOO.

I THINK JUST KEEPING THAT AS LIKE HOWEVER YOU ALL WANT TO SORT THAT OUT INTERNALLY BETWEEN YOUR TWO OFFICES IS FINE.

I THINK AS LONG AS IT'S DOCUMENTED THIS IS COMPLETED, THIS IS WHEN IMPLEMENTATION IS GOING TO HAPPEN OR IMPLEMENTATION ISN'T GOING TO HAPPEN.

I THINK IF THAT'S MY HEAD, IT'S A SPREADSHEET, BUT THAT DOESN'T NECESSARILY MEAN THAT'S THE BEST WAY.

SO DON'T TAKE THAT AS IT NEEDS TO LOOK LIKE THAT.

BUT WHERE THOSE TWO THINGS ARE DIFFERENTIATED, IT SOUNDS LIKE ADDS VALUE THEN INCLUDE THAT.

OKAY, SO AUGUST AND ERICA, LET'S HAVE THE CONVERSATION AND FIGURE OUT IF WE CAN AGREE ON THE PATH FORWARD.

MAYBE IT IS WE SAY, OKAY, LET'S LET'S DEFINITELY DO ALL THE COMPLETED ONES THAT WE CAN AND GIVE AN OPINION ON THAT.

AND IF THE COMPLETED ITEM IS GOING TO BE DONE, IMPLEMENT AT SOME LATER DATE, WE CAN COME BACK AND TEST THE IMPLEMENTATION.

SO LET'S HAVE THE CONVERSATION AND JOINTLY AGREE ON WHAT THE PATH FORWARD WILL BE AND ESPECIALLY SINCE THE FIRM IS GOING TO BE WORKING WITH US ON THAT. MR. BLACKWELL. I WOULD SAY ON THE IT SIDE, THE COMPONENTS OF THE LBB REPORT, WE'VE DETERMINED THAT THERE ARE SOME THAT ARE GOING TO BE COMPLETE, BUT RISK ACCEPTED MAINLY BECAUSE THERE'S A DEVIATION BETWEEN WHAT THE LBB RECOMMENDED AND WHAT ERICA WAS SAYING AND WHAT'S ACTUALLY BEEN IMPLEMENTED.

SO THERE'S GOING TO BE A COMPONENT, THERE'S A RISK ACCEPTED IS HOW WE'RE APPROACHING IT, BECAUSE OBVIOUSLY THE NATURE OF HISD IS A LITTLE BIT DIFFERENT THAN THE DECENTRALIZED

[00:50:01]

MODEL. AND I THINK THAT THAT CAN MAKE SENSE TO THE BOARD AND TO THE PUBLIC IS AGAIN, LONG AS IT'S DOCUMENTED.

AND I THINK WHAT WE'VE BEEN GETTING IS LIKE A LIST WITH A CHECKBOX AND THAT DOESN'T REALLY MEAN ANYTHING.

AND CLEARLY EVEN IN THE AUDIT OF IT WAS CHALLENGING.

AND SO I THINK A LITTLE BIGGER SCOPE OF INFORMATION THAT IN A VERY CONCRETE PROCESS AND TIMELINE AND THAT KIND OF STUFF GETS EXPLAINED TO US AND WE MIGHT HAVE A QUESTION, BUT PROBABLY LESS LIKELY THAN SOMETHING WHERE IT'S JUST UNCLEAR.

IT'S COMPLETED BUT NOT IMPLEMENTED.

WE DON'T KNOW WHY.

DOES IT MAKE SENSE? YEAH.

OKAY. ALL RIGHT.

WE'RE WAY BEHIND TIME.

THANK YOU ALL FOR BEARING WITH US, ESSER.

[ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF (ESSER) I AUDIT UPDATE]

CELINA YES.

THANK YOU. MR. BLACKWELL. MADAM CHAIR AND TRUSTEES, WE WERE ENGAGED TO PERFORM THE AUDIT OF ESSER ONE AND TWO, AND THEN ESSER THREE WILL CONTINUE AS THE YEARS PROGRESS.

WELL, I'VE STARTED OFF WITH THE PURPOSE.

BOTH ARE GENERAL TO PREVENT, PREPARE AND RESPOND TO THE CORONAVIRUS.

ESSER THREE IT CONTINUES WITH THE SAME PURPOSE, BUT IT ADDS ON TO ADDRESSING THE NEEDS OF HOMELESS CHILDREN, AND ALL THREE HAVE THE INTENT TO HELP KIDS SOCIALLY, EMOTIONALLY, AND OBVIOUSLY EDUCATIONALLY.

SO THAT'S AN ENCOMPASSING PURPOSE OF ALL THREE TRANCHES OF MONEY.

I WANTED TO EXPLAIN TO WHY WE STARTED WITH ESSER ONE AND TWO, BECAUSE THE DISTRICT IS SPENDING IT STARTED SPENDING ESSER ONE IN 2020, CONTINUED INTO 2021.

AND SO OUR AUDIT WE AGREED WITH CHIEF REED TO DO IS TO AUDIT AS THEY'RE CLOSING THE BOOKS.

IF YOU RECALL, IN 2020 AND 2021, THERE WAS AN INFLUX OF FEDERAL FUNDS RELATED TO THE CORONAVIRUS.

AND SO, FOR EXAMPLE, THE CORONA RELIEF FUND, CORONAVIRUS RELIEF FUND, MANY DISTRICTS SIMILAR TO HISD, NOT IN SIZE BUT JUST OBVIOUSLY IN OPERATIONS, ALSO RECEIVED THIS FUNDING.

AND SO THEY HAD TO PIVOT SEVERAL TIMES.

SO WE AGREED THAT WE CAN'T BE AUDITING AS THE YEAR IS GOING BECAUSE IT'S A MOVING TARGET AND THEY DECIDE, OH, THIS NEW FUNDING CAME IN, WE'LL TAKE THOSE EXPENDITURES AND APPLY IT TO THAT FUNDING BECAUSE THEN WE MIGHT AUDIT SOMETHING THAT THEY DECIDED TO RECLASS OUT OF ESSER AND IT WASN'T CHARGED TO ESSER IN THE END, AND WE ENDED UP TESTING SOMETHING THAT WE DIDN'T NEED TO TEST.

SO AS THEY'RE CLOSING EVERY YEAR, SO FOR THIS SO WE TESTED AS OF JUNE 30TH, 2021, THEY SPENT EIGHT THEY BEING MANAGEMENT HAS SPENT $80.6 MILLION OF THE ESSER ONE FUNDS WITH THE REMAINING BALANCE OF $1.4 MILLION, THE DISTRICT HAS DRAWN DOWN $81.1 MILLION OUT OF THE ALLOCATION OF $81.9 MILLION.

I'M GOING TO ALSO TALK ABOUT ADA HOLD HARMLESS AND WHAT THE STATE DID WITH YOUR STATE FUNDING WITH ESSER ONE AND ESSER TWO.

SO AS WE MOVE THROUGH THE TRANCHES OF MONEY.

ESSER TWO YOU RECEIVED $358.2 MILLION.

AND THEN WE SEE WITH ESSER THREE, IT'S $804 MILLION.

SO OBVIOUSLY IT HAS DOUBLED, TRIPLED FROM ESSER ESSER ONE, ESSER TWO, ET CETERA.

SO FOR ESSER ONE, 95% OF YOUR ESSER ONE ALLOCATION WAS SUPPLANTED FOR STATE AIDE.

SO WHAT THE DISTRICT HAS DONE IS USED IT FOR PAYROLL AND A FEW NON-PAYROLL ITEMS ONE CONTRACT RECLASSIFIED FROM THE GENERAL FUND AND MOVED IT INTO ESSER.

AND SO WITH THAT THE CONTROLS WERE TESTING IS THE BASIC CONTROLS THAT THEY HAVE OVER THE GENERAL FUND EXPENDITURES.

AS YOU MOVE INTO ESSER TWO, IT MAY BE THE SAME SCENARIO WHERE THEY'RE RECLASSIFYING FROM THE GENERAL FUND OR CREATING NEW ACTIVITIES, WHETHER IT'S PAYMENTS TO EMPLOYEES OR TO VENDORS.

ESSER THREE MAY BE THE SAME STORY, BUT ESSER THREE WILL BE A LITTLE BIT.

IT GETS MORE EXCITING WITH ESSER THREE.

AND THE REASON I SAY THAT IS BECAUSE ESSER THREE COMES WITH THE 20% SET ASIDE FOR LEARNING LOSS.

THERE'S MORE PLANS THAT HAVE TO BE POSTED ON THE DISTRICT'S WEBSITE SO THERE WILL BE MORE TESTING.

SO, YOU KNOW ESSER ONE AND ESSER TWO.

THERE WILL BE AUDITS.

BUT WHAT THE STATE DID WITH ESSER ONE, REPLACING ALL OF YOUR STATE AID.

THERE WASN'T REALLY ANYTHING TO SHOW THAT ESSER ONE IMPACTED THE STUDENTS, LIKE ESSER THREE IS SET UP TO DO.

IT'S BASICALLY THEY TOOK YOUR STATE AID ESSER TWO WHAT THE STATE DID IS THEY TOOK $65.8 MILLION OF THE $358 MILLION ALLOCATION HELD YOU HARMLESS FOR THE ADA THAT THE AVERAGE DAILY ATTENDANCE YOU DIDN'T EARN AND MANY DISTRICTS RECEIVED THIS HOLD HARMLESS AMOUNT.

[00:55:05]

SO PART OF THAT IS PROBABLY RECLASSIFICATIONS AS WELL OR NEW ACTIVITIES OR NEW EMPLOYEES THAT WERE HIRED. AND JUST, YOU KNOW, MANAGEMENT HAS TO BE VERY CAUTIOUS WITH IT.

AND AND THAT'S WHY THERE MIGHT BE RECLASSIFICATIONS, BECAUSE YOU'LL HEAR THROUGHOUT THE STATE THAT THERE COULD BE A FISCAL FUNDING CLIFF.

YOU DON'T WANT TO HIRE ALL OF THESE EMPLOYEES THAT YOU CANNOT CONTINUE TO EMPLOY AFTER THE ESSER MONEY'S RUN OUT.

SO IT'S IT'S A FINE BALANCE.

YOU KNOW, IT'S DIFFICULT.

I WOULD NOT WANT TO BE IN MANAGEMENT IN MANAGEMENT SHOES, HAVING TO PUT ALL THESE BUCKETS OF FUNDS TOGETHER AND FIGURE OUT WHAT WE'RE GOING TO DO, MAKE SURE THAT WE MEET THE INTENT OF THE STATUTE AND SPEND ALL BY.

SO, EESSER TWO YOU HAVE TO SPEND IT ALL BY SEPTEMBER 32, 2022.

EXCUSE ME ESSER ONE, ESSER TWO HAS TO BE COMPLETELY SPENT BY SEPTEMBER 30TH.

2024. AND IF WE COULD MOVE TO THE NEXT SLIDE.

OH, I JUST THOUGHT GARLAND LEFT.

I THOUGHT, OH, MY GOODNESS HE LEFT.

ON FOR ESSER THREE.

IT'S IN YOUR 22 AND 23 AUDIT PLAN AS WELL, AND YOU'LL SEE THIS CONTINUE TO BE AN AUDIT OBJECTIVE IF IT'S THE IF THE BOARD CONTINUES TO WANT TO DO IT. BUT BUT YOU'LL SEE THAT $804 MILLION IS THE IS THE AMOUNT OF THE ALLOCATION THAT YOU'VE RECEIVED AS HISD.

SO YOU HAVE THROUGH SEPTEMBER 30, 2024, I PULLED DOWN THE TEA REPORT AND YOU'VE DRAWN DOWN 54 MILLION OF THE 804 MILLION, JUST TO SHOW YOU THAT, YOU KNOW, IT'S STILL IN THE EARLY STAGES OF HOW THE DISTRICT IS DRAWING DOWN THE MONEY.

SO IT DOESN'T MAKE SENSE TO BE TESTING LITTLE BITS AND PIECES AND DISRUPTING MANAGEMENT.

SO WE WANT THEM TO CLOSE THE THE BOOKS EVERY YEAR AND CONTINUE TO TEST AS THEY AS THEY OBLIGATE AND SPEND THE FUNDS.

AND SO JUST ONE LAST THING FOR ESSER ONE.

SO ALL THAT THEY'VE SPENT SO FAR IN THIS AUDIT FOR THIS AUDIT PLAN IS ESSER ONE, SO THAT THEY'VE SPENT ABOUT $80 MILLION.

SO WE'LL BE DONE WITH THAT FOR SURE NEXT MONTH WITH A REPORT.

I DON'T EXPECT ANY ISSUES, BUT OF COURSE THOSE WILL BE REFLECTED.

I DO WANT TO THANK CHIEF GLENN REED AND ALL OF HIS TEAM.

THEY WERE VERY TIMELY IN UPLOADING ALL OF THE INFORMATION THAT WE NEEDED.

WE SELECTED ALMOST 100 TRANSACTIONS ON THE PAYROLL SIDE AND THEN TESTED THE MAJORITY OF THE NON-PAYROLL TRANSACTIONS, WHICH WAS THEY'RE VERY LIMITED IN THAT. SO AND YOU'LL ALSO BE AUDITED BY YOUR EXTERNAL AUDIT FIRM AS WELL, BECAUSE THE OFFICE OF MANAGEMENT AND BUDGET HAS DEEMED THIS THAT BOTH THE CARES [INAUDIBLE] AND ARPA FUNDS AS HIGHER RISK FOR ESSER.

SO YOU'LL SEE IT IN BOTH PLACES.

SO YOU'LL HEAR A LOT ABOUT ESSER AS WELL.

THANK YOU. QUESTIONS FOR MY COLLEAGUES.

YES. AND IF YOU CAN PLEASE REPEAT THE AMOUNT OF ESSER THREE THAT'S BEEN DRAWN DOWN.

DRAWN DOWN IS $54.4 MILLION.

I PULLED IT THIS MORNING JUST TO SEE.

JUST TO GIVE YOU AN IDEA, IT'S NOT ENCOMPASSED IN THIS 22 AUDIT JUST BECAUSE AS OF JUNE 30, 2021, THE DISTRICT EXHAUSTED THE MAJORITY OF ITS ESSER ONE FUNDS. AND YOU'LL SEE MORE OF ESSER TWO IN THIS YEAR.

ESSER TWO WAS $25.3 MILLION.

SO SO AGAIN AND JUST BE AWARE THAT THERE'S OTHER FUNDING COMING IN TO THE DISTRICTS.

THAT'S NOT ESSER BUT IT'S ALL HAS TO BE COVID RELATED.

SO AGAIN, IT'S VERY DIFFICULT TO FIGURE OUT WHICH POT OF MONEY DO I USE FIRST.

AND THEN ON THE ON SLIDE 29, ON THE PREVIOUS PAGE, AT LEAST.

SO $65 MILLION OF ESSER TWO WAS SUPPLANTED FOR STATE AID.

SO WILL YOU BE AUDITING THE REMAINING BALANCE OF ESSER TWO.

I'LL BE AUDITING THE WHOLE THING.

SO THE ENTIRE $358 WILL BE SUBJECT TO AUDIT.

I'M JUST LETTING YOU KNOW THAT IT'S YOUR STATE AID MONEY.

SO ALL OF THE FEDERAL REQUIREMENTS THAT ARE ATTACHED TYPICALLY TO ESSER, LIKE, FOR EXAMPLE, ESSER THREE IS 100% SUPPLEMENTAL.

THEY HAVEN'T DONE ANYTHING WITH YOUR STATE AID, BUT WITH ESSER ONE AND ESSER TWO, 95% OF YOUR ALLOCATION WAS SUPPLANTED AND THEN A SMALLER PORTION FOR THAT. THAT JUST MEANS THAT IT'S YOUR STATE MONIES AND YOU CAN USE IT.

STILL HAVE TO COMPLY WITH STATE LAW, BUT IT'S A LITTLE THERE'S A LITTLE BIT MORE FLEXIBILITY ON HOW YOU CAN USE THE FUNDS FOR THE HOLD HARMLESS.

BEST EXAMPLE IS THIS PORTION.

IF YOU USE THE $65 MILLION FOR PAYROLL, YOU DON'T HAVE TO PAY THE FEDERAL CONTRIBUTION RATES INTO TRS.

SO THAT'S FEDERAL CONTRIBUTION FREE MONEY.

ESSER ONE SAME THING.

ESSER THREE THERE IS THE FEDERAL CONTRIBUTION AMOUNT THAT THE DISTRICT HAS TO CONTRIBUTE IF THEY DO CODE PAYROLL.

SO THAT'S ONE OF THE EXAMPLES OF HOW THESE AMOUNTS ARE WERE SUPPLANTED FOR STATE AIDE AND THE IMPLICATIONS ON WHAT IT'S NOT TREATED LIKE YOUR NORMAL STATE FUNDING.

[01:00:06]

AGAIN, STILL HAVE TO MAKE SURE YOU'RE IN COMPLIANCE WITH THE UNIFORM GUIDANCE OMB REQUIREMENTS, BUT IT'S NOT AS STRINGENT AS WHAT WE'LL SEE WITH ESSER THREE.

OKAY. THAT'S HELPFUL, AND GLAD TO SEE THAT THE OBJECTIVE OF THE AUDIT WILL ALSO BE LOOKING AT ALIGNMENT TO THE STUDENT OUTCOMES, WHICH IS WHAT WE SHOULD ALWAYS BE CONCERNED WITH.

YES. AND TRUSTEE CRUZ, I WANT TO ALSO SAY FOR ESSER ONE, YOU WON'T WHAT I TOLD MANAGEMENT IS, AND ON THE EDUCATION SIDE IS THAT THERE'S REALLY NOTHING TO DO WITH ESSER ONE, BECAUSE IT WAS YOUR STATE AID, BUT ESSER THREE IS WHERE WE CAN REPORT ON THAT BECAUSE OF THAT 20% LEARNING LOSS SET ASIDE.

OKAY. THANK YOU SO MUCH, CELINA.

YOU'RE WELCOME, MS. LOGAN. NO QUESTION.

THAT WAS VERY INFORMATIVE.

THANK YOU. SO I'M GOING TO PREFACE THIS WITH WHENEVER ANYBODY ASKS ME WHAT WE'RE DOING WITH OUR ESSER DOLLARS, AND I DON'T THINK WE'RE ALONE IN THIS.

I SEND THEM THAT GIF OF THE LITTLE RASCAL, LIKE THROWING THE MONEY OUT THE WINDOW.

OUR CHILDREN ARE GOING TO HAVE TO PAY THIS DEBT.

AND IF WE DON'T USE IT, INVEST IT IN THEM IN WAYS THAT CHANGE THEIR OUTCOMES, THEN WE'RE ASKING THEM TO PAY BACK A DEBT AS ADULTS THAT THEY ARE UNPREPARED TO DO.

SO I THINK THAT SOMETIMES WE LOOK AT THIS OF LIKE CHECK THE BOX COMPLIANCE.

WE HAVE TO TALK ABOUT IT.

IT'S INCREDIBLY CRITICAL.

AND I DON'T WANT ANYBODY TO HAVE ANY LIGHT FEELINGS ABOUT THIS AT ALL.

SO MY FIRST QUESTION IS CLARITY ON ARE WE AUDITING THIS JUST FOR LEGAL COMPLIANCE WITH FEDERAL REQUIREMENTS? LIKE, WHAT ARE WE LOOKING AT? IT'S NOT ON. I NEED TO BORROW SOMEBODY.

OH, HERE WE GO. THERE WE GO.

SO WE'RE LOOKING AT COMPLIANCE WITH THE OFFICE OF MANAGEMENT AND BUDGET WERE IF ALSO STATE REQUIREMENTS AS WELL.

BUT ON THE ON THIS.

ON THE EDUCATIONAL SIDE BECAUSE YOU HAVE ON THE AUDIT IN THE AUDIT PLAN BOTH THE FINANCIAL AND OPERATION SIDE, HOW WAS IT SPENT? WAS IT IN ACCORDANCE WITH OMB REGULATIONS, THE TEA APPLICATION? AND THEN, OKAY, YOU SET ASIDE 20% FOR LEARNING LOSS.

WHAT WAS THAT? HOW WAS THAT SET ASIDE USED AND DID THE DISTRICT SEE THE BENEFIT OF THAT, THOSE LEARNING LOSS INITIATIVES? SO THIS REPORT WILL JUST NOT TAKE THE FINANCIAL ASPECT, BUT WE'RE WORKING ON THE EDUCATION SIDE WITH DR.

TAMI MITCHELL TO SEE.

OKAY, WHAT WHAT WERE THE OUTCOMES? WE SET IT ASIDE, DID WE SEE BETTER SCORES, ETC., WHATEVER IS IN THE APPLICATION WE'LL TEST IT AGAINST.

NOW TEA HAS APPROVED THAT APPLICATION ON HOW THEY'VE DETERMINED TO USE THEY THE DISTRICT HAS DETERMINED TO USE THE 20% SET ASIDE.

BUT THAT'S GOING TO BE OUR BENCHMARK.

YOU SAID YOU WERE GOING TO DO X, Y, Z, AND IT SHOULD IMPROVE.

YOU KNOW, ABC, DID THAT HAPPEN? SO NOT JUST DID WE INVEST IN THE INPUT, BUT THAT THE INPUT WE SAID WAS THE RIGHT INVESTMENT, ACHIEVE THE OUTCOME FOR STUDENT LEARNING? CORRECT. AND HOW ARE HOW ARE THEY MEASURING THE STUDENT LEARNING OUTCOME? YOU KNOW, A LOT OF THE A LOT OF IT CAN BE DONE THROUGH THE CAMPUS AND DISTRICT IMPROVEMENT PLAN.

I'M NOT SURE WHAT THEY'VE SUBMITTED OR WHAT THEY HAVE SET UP.

I HAVEN'T GOTTEN INTO ESSER THREE WE'RE BARELY INTO ESSER ONE.

SO THAT'S SOMETHING THAT I'LL HAVE TO DOVE INTO AND THAT THEY'RE AWARE AS YOU'RE SPENDING THE 20% KNOW THAT WE NEED TO SEE THE OUTCOMES BECAUSE I BELIEVE IN THE ACTUAL AUDIT PLAN, IT IS ADDRESSED.

WE WANT TO SEE THAT IT ACHIEVED THE OUTCOMES THAT YOU HAD SET FORTH WITHIN THE APPLICATION.

YEAH AND THAT'S WHY I'M ASKING IS THE OUTCOME THE CHILD GOT THIS SERVICE OR IS THE OUTCOME THE CHILD'S READING SCORE ON STAAR OR OUR DISTRICT BENCHMARK OR WHATEVER IMPROVED. AND THAT'S THE PART I THINK THE LATTER I'M HOPING FOR.

I THINK THE LATTER WOULD BE MORE BENEFICIAL, BUT I'LL MAKE SURE THAT WE ADDRESS THAT BECAUSE THE.

DID THE STUDENT GET THE SERVICE IT CORRELATES WITH THE FINANCIAL THE ACTUAL EXPENDITURE.

SO WE'LL NEED TO WORK WITH EDUCATION TO START WORKING WITH THE CURRICULUM INDIVIDUALS.

HOW ARE YOU GOING TO MEASURE THAT STAAR SCORES IMPROVED IF THAT'S WHAT YOU SAID.

YEAH. AND WHO SETS THAT? IS THAT SOMETHING OUR DISTRICT DOES OR IS THAT SOMETHING THAT THE STATE OR THE FEDERAL GOVERNMENT LIKE?

[01:05:04]

WHO DECIDES WHAT THE LEARNING OUTCOME THAT? IT SHOULD BE IN THE APPLICATION ON WHAT YOU'RE LEARNING LAW SET ASIDE THE DOLLARS ARE WERE SET ASIDE FOR AND WHAT YOU PLAN TO ACHIEVE WITH THAT LEARNING LEARNING LOST.

SO IT COULD BE SPECIFIC TO OUR DISTRICT.

YES. YES.

WITHIN YOUR.

DO YOU KNOW THAT OFF THE TOP OF YOUR HEAD OR IS THAT SOMETHING WE CAN GET A COPY OF? PLEASE, I'M SURE WE GET A COPY OF IT, BUT I THINK A LOT OF THIS ALSO IS TIED TO INTERNALLY.

I KNOW DR. MANNING AND HER TEAM HAS HIRED STAFF WHOSE SOLE RESPONSIBILITY IS LOOKING AT ESSER OUTCOMES RELATED TO THE PROJECTS WE'VE DONE.

AND JUST AS CONTEXT, RIGHT, WE WHEN WE STARTED THIS PROCESS ORIGINALLY BACK IN AUGUST, RIGHT WHEN WE FIRST GOT THE FUNDING THROUGH THAT TIME, SUPERINTENDENT HOUSES COME IN, WE'VE BUILT A STRATEGIC PLAN.

AND SO WHAT WE'VE DONE IS REALLY MADE SURE WE'VE TALKED ABOUT THIS IN PRIOR BOARD MEETINGS BUT REALLY HAVE ALIGNED ESSER INVESTMENTS TO MAKE SURE THEY'RE ALIGNED TO WHAT WE HOPE THE OUTCOMES ARE WITHIN OUR STRATEGIC PLAN.

AND SO AT THE END OF EACH YEAR AND WE'RE COMING UP TO THAT SHORTLY, RIGHT, WE ARE GOING BACK AND EVALUATING EACH OF THE DIFFERENT PROJECTS THAT WE'RE INVESTING IN.

AND THOSE ARE ALL EACH PROJECT WAS SUPPOSED TO ALIGN THOSE TO SPECIFIC STUDENT OUTCOME OR GOAL.

AND YOU HAVE SOME THINGS THAT ARE EASIER TO DO, LIKE.

RIGHT. WE TALKED ABOUT HVAC INVESTMENTS, RIGHT? THAT'S NOT NECESSARILY GOING TO I CAN'T SHOW THAT CORRELATION, BUT I CAN SHOW THAT, HEY, READING [INAUDIBLE] THIS CAMPUS, WELL, THE RESULTS OF THE READING INTERVENTION SCORES.

AND SO IT DEPENDS ON THE PROJECT.

BUT YOU KNOW, A LOT OF IT TOO.

WE'VE INVESTED A LOT IN HUMAN CAPITAL.

RIGHT. AND SO THERE ARE SOME THINGS THAT ARE EASIER TO MAKE THOSE CORRELATIONS, SOME THAT ARE A LITTLE BIT MORE CHALLENGING.

YEAH, HVAC INVESTMENT COULD CORRELATE TO HEALTH AND LOWER LOWER ABSENTEEISM.

THAT'S A GREAT ANSWER. YEAH, THAT MAKES SENSE.

[INAUDIBLE] SO THAT'S HELPFUL.

AND I THINK THAT THAT IS TO ME, ONE OF THE MOST IMPORTANT PARTS OF IT IS THAT IT IS LEARNING OUTCOMES, WHAT CHILDREN KNOW OR CAN DO AND NOT THEY RECEIVED A SERVICE OR SOME OTHER INPUT.

SO I HEARD, IF I HEARD CORRECTLY, IT SOUNDS LIKE RIGHT NOW ESSER DOLLARS ARE BEING MOVED INTO PAYROLL. SO THAT WE COULD FREE AND THEN WE'RE USING SO WE CAN FREE UP DISTRICT DOLLARS FOR OTHER THINGS.

WELL, FOR ESER ONE, THAT'S DEFINITELY WHAT WAS DONE.

ONE, BECAUSE IT WAS YOUR STATE AIDE.

SO WHAT WE SAW WITH ESSER ONE, THEY TOOK THE STATE COMPLETELY SUPPLANTED 100% OF WHAT WAS COMING TO HISD, USED YOUR ESSER ONE ALLOCATION, WITHHELD 5% BECAUSE THAT HAD TO BE RESERVED FOR PRIVATE SCHOOL PARTICIPATION.

ESSER TWO AND ESSER THREE DO NOT HAVE THAT PRIVATE SCHOOL PARTICIPATION RESERVE.

BUT WHAT THE STATE DID, THEY SAID, WELL, YOU YOU YOU TOOK $77.8 MILLION OF MY STATE AID THAT I PLANNED TO RECEIVE THROUGH STATE FUNDS THAT I WAS GOING TO USE FOR PAYROLL.

SO THAT'S WHY THE CLASS OCCURRED, BECAUSE THEY DIDN'T GET THEIR STATE AID FUNDING.

SO THAT WAS JUST ESSER ONE.

ESSER ONE. CORRECT.

THAT'S NOT ESSER TWO.

YEAH. I DON'T KNOW WHAT HAPPENED YET WITH ESSER TWO, BECAUSE AS OF JUNE 30TH, 2021 ZERO HAD BEEN SPENT FROM ESSER TWO.

SO MORE TO COME ON ESSER TWO ON WHAT HAS BEEN SPENT.

OK WHAT HAS BEEN DRAWN DOWN IS DIFFERENT, SO I HAVEN'T SEEN THE EXPENDITURES.

I JUST WANTED TO GIVE YOU AN IDEA THAT THEY'RE DRAWING IT DOWN, THEY'RE SPENDING IT.

SO THERE WILL BE SOMETHING TO AUDIT AS OF JUNE 30, 2022.

OK AND THEN I KNOW WE HAD TO TURN IN THE DISTRICT, HAD TO TURN IN A PLAN TO THE STATE FOR THE FUNDS.

DOES THE AUDIT INCLUDE? DID WE SPEND IT IN THE WAY THAT WE TOLD THE PUBLIC WE WERE GOING TO SPEND IT? YES, FOR ESSER THREE, IT WILL.

SO ESSER THREE HAS THAT REQUIREMENT.

ESSER ONE AND TWO DOES NOT.

BUT IT HAS A SAFE RETURN TO SCHOOL PLAN AND THEN ALSO THE USE OF OF FUNDS PLAN THAT HAS TO BE POSTED.

SO YES, WE'LL THAT IS PART OF THE APPLICATION.

AND SO NOT ONLY JUST LOOKING AT IS IT ALLOWABLE OR NOT ALLOWABLE, WE HAVE TO COMPARE IT TO THE OBJECTIVES THAT WERE INCLUDED IN THE APPLICATION.

SO THIS IS WHAT THE DISTRICT SAID THEY WERE GOING TO SPEND IT ON.

THAT'S WHAT WE VOTED TO GIVE THEM APPROVAL TO SEND TO THE STATE THAT IF THERE'S A DEVIATION FROM THAT, THAT WOULD BE SOMETHING THAT WOULD BE IN YOUR FINDING TO SAY ABSENT THE DISTRICT UPDATING THE PLAN WITH THE STATE TO SAY, WE'RE GOING TO CHANGE COURSE A LITTLE BIT, WHICH WE'RE ALLOWED TO DO.

EXACTLY. YOU ARE.

ALL RIGHT. THAT'S HELPFUL. THANK YOU.

A FOLLOW UP FOR THE ADMINISTRATION.

WOULD IT BE POSSIBLE IN TERMS OF I KNOW THAT THE DASHBOARD IS GOING TO BE LIVE SOON WITH THE ESSER EXPENDITURES, BUT MAYBE CORRELATING THOSE WITH THE OUTCOMES ON THAT DASHBOARD AS WELL.

LET ME LOOK IN. LET ME LOOK INTO THAT BECAUSE I KNOW WE'RE ABOUT TO RELEASE IT.

JUST LET ME CHECK.

I'LL LOOK INTO IT. APPRECIATE IT.

[01:10:01]

THANK YOU. ALL RIGHT.

STATUS UPDATE FOR OFFICE OF INTERNAL AUDIT 2122 GOALS.

[STATUS UPDATE FOR OFFICE OF INTERNAL AUDIT 2021–2022 GOALS]

41. NO.

49. OH, THANK YOU.

IF THE NOT HAVE THOSE BINDERS WITH THE TABS AND THE SECTIONS, I THINK THAT WOULD HELP US.

OKAY. GO AHEAD.

SO THIS IS A STATUS OF WHERE WE ARE THE GOALS THAT THAT THE BOARD APPROVED.

AS YOU CAN SEE, ONCE COMPLETE, THE REST ARE STILL IN PROGRESS.

AND WE'RE OPTIMISTIC TO GET THIS DONE BY THE BY THE END OF THE YEAR WITH SOME PROVISION OR PROVISO FOR AUDIT PLAN COMPLETION.

SO IN PROGRESS ONE IS COMPLETED.

I SEE SIX THAT ARE IN PROGRESS.

ARE YOU EXPECTING TO HAVE THEM ALL COMPLETED BY JUNE 30TH? THAT IS TO GO WITH THE EXCEPTION OF THE AUDIT PLAN BEING COMPLETE BY JUNE 30 DUE TO VACANCIES AND OTHER FACTORS.

OKAY. SORRY.

I USUALLY TRY AND LET YOU GO FIRST.

MS. LOGAN. SORRY.

I COULDN'T I COULDN'T COME OFF MUTE.

I THINK I'M OKAY.

I DON'T. THIS MAKES SENSE.

I DON'T HAVE ANY QUESTIONS.

OKAY. THANK YOU.

ETHICS COMPLIANCE IS CLOSED SESSION, RIGHT? NO. OKAY.

LET'S GO AHEAD AND DO THAT.

WE CAN TALK AMONG OURSELVES ABOUT THE BOARD TRAINING.

THERESA. OKAY.

THANK YOU. HI, I'M TERESA CORRIGAN, DIRECTOR OF ETHICS AND COMPLIANCE.

AND THIS FIRST SLIDE YOU'VE SEEN BEFORE, THE OPEN CASES BY DEPARTMENT CURRENTLY.

THE NEXT SLIDE SHOWS NUMBER OF CASES THAT CAME IN THE LAST THREE MONTHS AND HOW MANY WERE CLOSED.

AND NEXT IS SOMETHING YOU GUYS REQUESTED LAST AUDIT COMMITTEE MEETING.

YOU WANTED TO KNOW IF NON HISD EMPLOYEES COULD USE THE ETHICS HOTLINE AND YES THEY CAN.

AND YES, THEY DO AS YOU CAN SEE.

AND MY LAST SLIDE JUST GIVES AN UPDATE ON SOME CURRENT EVENTS.

WE'VE UPDATED THE OUR ONLINE TRAINING COURSES, WHICH IS THE ETHICS TRAINING AND THE E-RATE TRAINING.

THE E-RATE TRAINING HAD THE MOST UPDATES BECAUSE WE RECENTLY UPDATED THE RELEVANT POLICY.

WE DID HAVE A CODE OF SILENCE VIOLATION.

AND WE'VE HAD A RECENT UPTICK IN CONFLICT OF INTEREST ALLEGATIONS COME THROUGH THAT WE'RE LOOKING INTO.

AND WE FILED OUR SENIOR ETHICS AND COMPLIANCE ANALYST ROLE, WHICH HAS BEEN GREAT.

AND WE STILL HAVE ONE ROLE OPEN AFTER WE HAD SOMEBODY RETIRE ON OUR TEAM.

THANK YOU. THERESA, DO WE HAVE A POTENTIAL TIMELINE FOR THAT VACANCY OR YOUR BEST HOPE? I WOULD HOPE IN THE NEXT COUPLE OF MONTHS.

OKAY. QUESTIONS FOR MY COLLEAGUES.

I HAVE A QUESTION ON THE WHEN YOU SAY RECENT UPTICK IN CONFLICT OF INTEREST ALLEGATIONS, IS THIS THROUGH THE HOTLINE? IS THIS LIKE THROUGH? THROUGH THE HOTLINE AS WELL AS OUR TEAM NOW THAT WE HAVE, WE'RE ALMOST FULLY STAFFED.

WE'RE ABLE TO TAKE A DEEPER DOVE IN THIS IN THIS AREA.

OKAY. AND I GUESS MY QUESTION IS, WHAT IS THE FOLLOW THROUGH ON THAT IN TERMS OF HOW YOU WORK WITH THE ADMINISTRATION AND

[01:15:06]

KNOWING THAT THESE THINGS ARE GETTING ADDRESSED? WELL, IT'S WHEN IT COMES TO THE HOTLINE, WE WOULD WORK THE CASE WITH THE THE RELEVANT PARTIES AND DISCUSS IT WITH CHIEF BLACKWELL AND THE SUPERINTENDENT AND THEN BRING IT TO YOU IF IT'S A, YOU KNOW, AN ACCURATE ALLEGATION.

THANK YOU. OKAY.

MS. LOGAN, DO YOU HAVE ANY QUESTIONS? NO, I'M OKAY. OKAY.

I HAVE ONE.

SO THE NON EMPLOYEE ETHICS AND COMPLIANCE OR HOTLINE CALLS DO THEY ARE THEY JUST RANDOM COMMUNITY MEMBERS OR ARE THEY PARENTS? YOU GO BACK ONE SLIDE, PLEASE.

THEY ARE A COMBINATION OF CONCERNED CITIZENS, PARENTS, STUDENTS.

OKAY? YEAH, I DID.

I DID PRINT A LIST OF TYPES OF ALLEGATIONS, AND IT'S YOU KNOW, I GUESS MOST OF THEM FALL IN OTHER.

SO IT'S HARD TO SAY OR MISCONDUCT.

SOME CONFLICT OF INTEREST, STUDENTS SAFETY, VIOLATION OF POLICY.

IT JUST RUNS THE GAMUT.

VIOLENCE THREAT. YEAH.

ALL RIGHT. THANK YOU.

ALL RIGHTY OKAY. SO WE STILL NEED TO GO INTO CLOSED REALLY, REALLY QUICK BOARD TRAINING.

YOU AND I ARE THE ONLY TWO.

SO I THINK CHIEF BLACKWELL.

MAYBE SO WE.

DO WE HAVE A DATE SET? NO, CELINA, YOU'RE THE ONE THAT'S GOING TO GIVE THE TRAINING.

WE MIGHT NEED SOME NEW DATES PROPOSED.

SO SORRY THAT THIS HAS BEEN, I THINK BECAUSE OF BUDGET SEASON.

WE'VE JUST BEEN SO CONSUMED WITH THAT.

YEAH. WE'RE HAVING TROUBLE FINDING A DATE THAT INTERESTED TRUSTEES CAN ALL COME AT THE SAME TIME.

AND THEN I KNOW THAT A QUESTION THAT YOU PRESENTED TO ME, MR. BLACKWELL, WAS WHAT TOPIC WOULD WE LIKE TO MEET ON OR HAVE A TRAINING ON? AND I THINK MAYBE GIVING EITHER GIVING US A LIKE, HEY, BASED ON THE QUESTIONS YOU ALL ASK OR THINGS THAT WE'VE EXPRESSED, HERE ARE A COUPLE OF DIFFERENT TRAINING.

SUBJECTS THAT MIGHT BE RECOMMENDED.

I THINK THAT WOULD BE HELPFUL BECAUSE I'M LIKE, I DON'T KNOW, WHAT DO WE NEED TO KNOW? RIGHT. WE DON'T NECESSARILY KNOW.

WE DON'T KNOW WHAT WE DON'T KNOW.

AND SO I THINK GIVING US A LITTLE DIRECTION ON THAT WOULD BE HELPFUL.

YEAH. I'LL PUT A LIST OF TOPICS.

DON'T MAKE IT TOO LONG.

A COUPLE. JUST A COUPLE LITTLE THINGS THAT.

50 MINUTES. YEAH, YEAH.

2 HOURS OR SO, I THINK.

I THINK YOU START GETTING PEOPLE THAT LEAVE EARLY IF IT GETS TOO LONG.

OKAY. WE'RE JUST BEING HONEST.

I SPENT FULL DAYS IN THESE AND I FIND THEM UTTERLY FASCINATING.

BUT SOME OF US ARE A LITTLE WEIRD.

ALL RIGHT CLOSED SESSION.

AT THIS TIME, THE COMMITTEE WILL ADJOURN INTO CLOSED SESSION IN THE BOARD SERVICES CONFERENCE ROOM UNDER CHAPTER 551 OF TEXAS GOVERNMENT CODE OPEN MEETINGS ACT SUBSECTIONS

[CLOSED SESSION]

551.004, 551.071, 551.072, 551.073, 551.074, 55 1.076, 551.082, 551.0821, 551.083, 551.084 AND 551.089. SHOULD BOARD, FINAL ACTION, VOTE OR DECISION ON ANY MATTER CONSIDERED IN THE CLOSED SESSION BE REQUIRED.

SUCH FINAL ACTION, VOTE OR DECISION SHALL BE TAKEN AT THE OPEN MEETING COVERED BY THIS NOTICE.

UPON THE RECONVENING OF THIS PUBLIC MEETING, OR AT A SUBSEQUENT PUBLIC MEETING OF THE BOARD UPON NOTICE THEREOF.

THE COMMITTEE IS ADJOURNED TO CLOSED SESSION AT 11:38 A.M..



* This transcript was compiled from uncorrected Closed Captioning.