Apr 06, 2023 Special Board Meetings / Audit Committee

OH, WRONG ONE. GOOD AFTERNOON.

[CALL TO ORDER]

[00:00:03]

THE TIME IS 3:04 P.M.

COMMITTEE MEMBERS PRESENT IN THE BOARD ROOM ARE TRUSTEE CRUZ TRUSTEE WADE AND OUR COMMUNITY MEMBER LIZ LOGAN AND SUPERINTENDENT HOUSE.

ADDITIONAL BOARD MEMBERS, WE DO NOT HAVE ANY ADDITIONAL BOARD MEMBERS PRESENT.

[CONSIDERATION AND APPROVAL OF MINUTES FROM PREVIOUS MEETINGS]

AND JUST VOTE BY SHOW OF HANDS.

PLEASE VOTE. THREE IN FAVOR.

ZERO OPPOSED.

MOTION PASSES.

WE ARE NOW READY TO CONSIDER ITEMS FOR DISCUSSION.

[CLOSED SESSION]

SHOULD BOARD FINAL ACTION VOTER DECISION ON ANY MATTER CONSIDERED IN THE CLOSED SESSION BE REQUIRED SUCH FINAL ACTION VOTER DECISIONS 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 HAS ADJOURNED TO CLOSED SESSION AT 3:05 P.M..

THE AUDIT COMMITTEE HAS NOW RECONVENED IN OPEN SESSION AT 3:36 P.M..

ALL RIGHT. AND BOARD MEMBERS, IF YOU GO TO SHAREPOINT, ALL OF OUR MEETING DOCUMENTS FOR TODAY ARE THERE.

AND LOOK AT THAT.

OKAY. I'M GOING TO MUDDLE THROUGH THIS.

WHICH ONE IS THE AGENDA? SO AGAIN, WHICH ONE'S THE AGENDA? THE AGENDA YOU'RE ACTUALLY FIND.

SO IT'S NOT ALL IN THIS.

THANK YOU. OKAY.

SO WE HAVE NO SPEAKERS TO AGENDA.

OH, WE'VE BEEN JOINED BY TRUSTEE HERNANDEZ.

WE'VE APPROVED THE MINUTES.

[ONBOARDING FOR NEW COMMITTEE MEMBERS]

WE'RE ALL RETURNING AT SOME.

WE'VE ALL BEEN HERE AT SOME POINT.

IS TRUSTEE GUIDRY JOINING US.

NO. OKAY. OKAY.

SO COMMITTEE MEMBERS STAFF HAS PROVIDED FOR US ALL OF THE CHARTER, ALL OF THAT KIND OF STUFF.

I THINK IT'S ALWAYS A GOOD IDEA FOR US TO REVIEW THOSE THINGS SO WE KNOW WHAT OUR ROLE IS EVERY YEAR AT THIS TIME.

[SELECT NEW AUDIT COMMITTEE CHAIR]

ARE THERE ANY NOMINATIONS FOR A NEW CHAIR? A NEW CHAIR.

I NOMINATE TRUSTEE DEIGAARD TO REMAIN THE CHAIR OF THE AUDIT COMMITTEE.

SECOND, HERNANDEZ. NO ONE WANTS TO VOLUNTEER.

I SECOND IT.

SOMEBODY THIRDED, I THINK.

[LAUGHTER] OKAY. ANY OTHER NOMINATIONS? OKAY. PLEASE VOTE.

SHOW OF HANDS.

SORRY. I GUESS I'LL ABSTAIN.

ONBOARDING OF NEW MEMBERS.

WE REALLY SHOULD DO AT LEAST COMMITTEE, IF NOT A COMMITTEE TRAINING EVERY YEAR.

OPEN IT UP TO THE FULL BOARD.

ANYBODY WHO WANTS TO PARTICIPATE.

[00:05:01]

[AUDIT COMMITTEE TRAINING]

THAT WAY THE NEW BOARD CAN CHOOSE WHETHER OR NOT TO DO THAT OR NOT.

BUT IF FOR SOME REASON WE ARE STILL HERE, WE CAN CONTINUE TO FULFILL OUR RESPONSIBILITIES.

AND SO I THINK BECAUSE WE HAVE ENOUGH NEW BOARD MEMBERS AND NEW COMMITTEE MEMBERS, I THINK HAVING JUST A GENERAL ROLES AND RESPONSIBILITIES OF AN AUDIT COMMITTEE, WHAT AN AUDIT IS, WHAT AN AUDIT ISN'T ALL JUST THAT VERY ONE ON ONE VERSION.

MISS CORRIGAN, IF YOU COULD FIND SOMEONE TO DO THAT KIND OF TRAINING FOR US, YOU KNOW, LIKE A FEW HOURS, DOESN'T NEED TO BE TWO DAYS OR EVEN A WHOLE DAY, JUST A COUPLE HOURS TO GIVE US THAT I THINK WOULD BE A GOOD JUMPING OFF POINT.

AND I THINK WILL BE HELPFUL TO INCOMING FOLKS AS WELL.

ALL RIGHT. SO MOVING ON TO.

THANK YOU. JUST WANT TO MAKE SURE I GET EVERYTHING COVERED.

WE'RE GOING TO COME BACK TO LAST YEAR'S AUDIT COMMITTEE REPORT.

WE'LL MOVE ON TO ALL OF THE BUSINESS THAT YOU HAVE FOR US FIRST, AND THEN WE'LL COME BACK TO THAT.

ALL RIGHT. I'LL TURN IT OVER TO YOU.

THANK YOU. OKAY.

WE'RE GOING TO HEAR FROM ALEXIS LICATA ON THIS ONE RFQ UPDATE.

OKAY. SO JUST TO CLARIFY, I'M GOING TO SPEAK TO PROJECT 23-11-08.

THIS WAS THE RFQ, OR AM I GOING TO YOU WANT ME TO DO THIS ONE FIRST? OKAY, I'LL DO 23-01-07.

[PROJECT 23-01-07: INDEPENDENT AUDITOR FOR ANNUAL FINANCIAL AUDIT]

SO THIS PROJECT WAS RELEASED IN FEBRUARY AND IT CLOSED IN MARCH.

SO WE RECEIVED TWO PROPOSALS.

THIS IS THE ANNUAL THIS IS AN ANNUAL AUDIT PER TEA THAT HAS TO BE CONDUCTED ON THE DISTRICT'S FINANCIAL STATEMENTS.

THEY ALSO LOOK AT INTERNAL CONTROLS FOR THE DISTRICT.

SO THIS WILL BE THE SOLE VENDOR THAT WILL SUPPORT THE ANNUAL AUDITS RELATED TO THOSE FINANCIAL STATEMENTS OF THE DISTRICT.

ANY QUESTIONS FOR MY COLLEAGUES? THIS IS ON THIS MONTH'S AGENDA FOR THE BOARD.

YES, MA'AM. OKAY.

AND THIS I MEAN, WEAVER IS THE ONE THAT'S BEEN DOING IT.

AND VERSUS JUST US MOVING FORWARD WITH WHAT'S BEEN WORKING.

RIGHT. WELL, I CAN SAY THAT THE EVALUATION COMMITTEE, THAT'S THE VENDOR THAT THEY SELECTED.

OKAY. BUT IT'S WHO WE'VE BEEN USING.

WE HAVE BEEN USING THEM. YES.

[PROJECT 23-11-08: INTERNAL AUDIT MANAGEMENT SERVICES]

SO THE NEXT PROJECT IS AN RFQ THAT WE CONDUCTED.

IT'S 23-11-08.

THIS IS THE RFP THAT WE RFQ, RATHER, THAT WE CONDUCTED FOR THE AUDIT MANAGEMENT SERVICES FOR OUR INTERNAL AUDIT DEPARTMENT.

THIS PROJECT ACTUALLY CLOSED THAT WE RECEIVED.

IT WAS ISSUED OVER THE THANKSGIVING BREAK.

IT CLOSED IN JANUARY.

SO WE'RE BRINGING THIS ITEM.

WE HAD SEVEN RESPONSES, SEVEN PROPOSALS.

THIS WAS A TWO STEP PROCESS, IF YOU WILL, IN TERMS OF HOW THE PROJECT WAS EVALUATED.

SO THE SEVEN THE COMMITTEE EVALUATED THE SEVEN PROPOSALS.

THEY WE TOOK THE HIGHEST SCORES, THE TOP THREE SHORTLISTED THOSE THREE TO INTERVIEWS AND THOSE VENDORS CAME IN FOR INTERVIEWS WITH THE COMMITTEE.

AND THEN AND THEN WE'RE BRINGING YOU THE FIRM THAT THEY ARE RECOMMENDING BASED ON THE FIRST PROCESS AND THE SECOND STEP.

SO I BELIEVE THERE WAS A QUESTION WHETHER THIS COULD BE TABLED IF WE WANTED TO TABLE THIS BOARD ITEM. IT WOULD HAVE TO GO TO APRIL.

WE CANNOT PUSH IT TO MAY'S BOARD.

IT WOULDN'T BE TIMELY.

THE HUNTER IT'S BEEN OPEN.

IT WOULD HAVE ALREADY BEEN OPEN FOR PAST 120 DAYS.

IF YOU HELD IT TO MAY.

SO IF YOU WANT TO PUT A PAUSE, WE WOULD HAVE TO DO A SOLICITATION AGAIN FOR THIS PROJECT.

OKAY. I HAVE ANOTHER QUESTION ABOUT THAT.

BUT COLLEAGUES, I'LL LET YOU ALL START WITH YOUR QUESTION.

WHAT WOULD I'M SLOW ON THE UPTAKE.

WHAT WOULD BE THE REASON FOR THE PAUSE FOR NOT VOTING TODAY.

SO I ASKED MS. LICATA IF WE WANTED TO POSTPONE THIS OUT TO LET THE NEW BOARD OF MANAGERS DECIDE IF THEY WANTED TO PURSUE THIS OR NOT.

[00:10:06]

I JUST WANTED TO MAKE SURE I UNDERSTOOD.

OKAY. THANK YOU. OTHER QUESTIONS FROM MY COLLEAGUES.

I HAVE A QUESTION.

ARE WE ABLE TO GET A LITTLE MORE DETAIL AS TO THE RATIONALE OF WHY THIS ONE WAS PICKED ABOVE OTHERS? BECAUSE IT'S UNDER THE CODE OF SILENCE.

I MEAN, IT WOULD JUST BE APPROPRIATE FOR ME TO SAY THAT OBVIOUSLY THEY WERE IN THE TOP THREE THAT WERE THAT WERE SHORTLISTED AND OBVIOUSLY OUT OF THE TOP THREE THIS WAS THE TOP VENDOR OUT OF THE THREE THAT WERE SHORTLISTED.

ARE THEY A CURRENT VENDOR? NO. OKAY I DIDN'T THINK I HAD SEEN THEIR NAME BEFORE.

OKAY. ANY OTHER QUESTIONS BEFORE I DIG IN? NO. SO AND YOU SAID THIS ALREADY, BUT I'M GOING TO ASK YOU TO REPEAT IT JUST BECAUSE I DIDN'T COMMIT IT TO MEMORY. HOW MANY APPLICANTS DID WE HAVE FOR THIS PROJECT? WE RECEIVED SEVEN PROPOSALS.

SO YOU RECEIVE SEVEN PROPOSALS? HOW DOES, WHAT IS THAT PROCESS THAT IT NARROWS IT DOWN TO THREE.

THE MECHANICS OF THAT.

SURE. SO THE EVALUATION COMMITTEE REVIEWED AND EVALUATED ALL SEVEN.

THEY DETERMINED AS A COMMITTEE THAT THEY WOULD SHORTLIST THE TOP THREE TO BRING IN FOR FACE TO FACE INTERVIEWS.

AND SO BASED ON THE SCORING OF STEP ONE THAT'S HOW THEY DETERMINED THE THREE.

THAT SCORING IS THEN PUT ASIDE FOR STEP ONE AND THEN THE RECOMMENDED VENDOR IS SOLELY BASED ON STEP TWO.

OKAY. SO THERE'S A RUBRIC.

THERE'S A SCORING PROCESS.

THAT'S HOW YOU GET FROM STEP ONE TO STEP TWO.

YES. AND THEN AFTER STEP TWO, STEP THREE IS INTERVIEWS.

JUST TWO STEP PROCESS. JUST TWO STEPS.

OKAY. THE THIRD STEP IS HERE'S YOUR ONE FINALIST.

OKAY. YES. OKAY.

THANK YOU FOR HELP.

I MEAN, WE NORMALLY DON'T I NORMALLY DON'T CARE ABOUT ALL OF THOSE STEPS, BUT THIS ONE BECAUSE IT HAS THIS FUNCTION WITH THE BOARD, I THINK IT'S IMPORTANT FOR US TO UNDERSTAND.

SO THANK YOU. AND AGAIN, BECAUSE OF THIS TRANSITION THAT'S COMING UP, IF THE BOARD APPROVES THIS THIS MONTH WHAT IS IT AN THE NEXT BOARD COMES IN AND WE'RE LIKE, NO, WE DON'T WANT TO DO IT THIS WAY.

WHAT ARE DO THEY HAVE TO WAIT THREE YEARS? DO THEY HAVE TO WAIT ONE YEAR LIKE OR IS THERE A PENALTY FOR TERMINATING EARLY? LIKE, HOW DOES WHAT IS THAT PROCESS LOOK LIKE AFTER WE APPROVE IF THE NEXT BOARD WANTS TO DO SOMETHING DIFFERENT? SURE. SO IF WE HAVE IN OUR TERMS AND CONDITIONS IN OUR CONTRACTS, WE HAVE CLAUSES.

SO THERE'S WITH CAUSE WITHOUT CAUSE.

SO IF IT WERE WITHOUT CAUSE, IT WOULD BE A 30 DAY TERMINATION.

IT WOULD BE WHAT? 30 DAYS.

30 DAYS? 30 DAYS? MAY I.

AND IT'S 30 DAYS NOTICE OF TERMINATION.

AND IS THERE ANY COST INCURRED TO US BEYOND THAT? NO, I MEAN THE COST.

I SAY NO, RIGHT.

BUT I SAY NO WITH WE HAVEN'T WE DON'T HAVE A CONTRACT YET.

SO I DON'T KNOW WHAT'S GOING TO BE NEGOTIATED IN THAT CONTRACT AND WHAT WOULD BE ACCEPTED BY OUR LEGAL DEPARTMENT VERSUS, YOU KNOW, AND WHAT THEY WOULD BE PROPOSING.

IN A TYPICAL CONTRACT THAT WE WOULD HAVE THERE WOULD BE A 30 DAY CLAUSE WITHOUT CAUSE.

SHOULD WE GO INTO CLOSED SESSION FOR THIS CONVERSATION? NO, I DON'T THINK I MEAN, I DON'T THINK THAT I'M SAYING ANYTHING THAT'S NOT A PART OF THE TERMS AND CONDITIONS, YOU KNOW, AND THEY'RE NOT JUMPING OUT OF THEIR CHAIRS.

SO, OKAY, WE'RE CLOSE, BUT ALEXIS IS GOING TO CUT YOU OFF PRETTY SOON AND SAY THIS IS ALL I CAN SAY.

OKAY. SO, OKAY, I'LL JUST LEAVE IT AT THAT.

OKAY. I JUST AGAIN, DON'T WANT TO BIND ANYTHING.

OKAY. AND THEN THE OTHER QUESTION I HAVE IS OF ALL OF THE BIG BUCKETS THAT WE DO RIGHT NOW, LIKE RIGHT NOW, OUR IT AUDIT, WE NEVER DO IN-HOUSE, RIGHT? WE OUTSOURCE THAT TO BDO.

WOULD THIS VENDOR BE DOING THE IT AUDIT OR WOULD THEY STILL BE OUTSOURCING IT TO SOMEONE LIKE IS THIS AN AREA OF SPECIALTY FOR THEM OR WOULD THEY BE OUTSOURCING THIS TO SOMEONE THAT IT IS THEIR SPECIALTY?

[00:15:07]

THEY HAVE THE OPTION OF SELF PERFORMING THAT, BUT THEY ALSO HAVE THE OPTION OF THEN SUBCONTRACTING THAT.

I WILL SAY THIS WE STILL HAVE A PROJECT THAT IS STILL VALID, THAT HAS APPROVED VENDORS FOR THE CURRENT INTERNAL AUDIT DEPARTMENT TO OUTSOURCE PROJECTS TO.

SO I'M GOING TO ASK ONE MORE QUESTION, AND I TRUST THAT OTHER PEOPLE WILL TELL ME, WILL NOT ANSWER IT IF WE SHOULDN'T.

BUT. SO, CHIEF GILHOUSEN, ARE YOU COMFORTABLE THAT WITH THIS RECOMMENDATION? CAN I ASK HIM THAT? I CAN ASK ANYTHING I WANT.

I CAN'T GET ANY. I'M NOT ENTITLED TO AN ANSWER.

OKAY. IS THAT WHAT I'M HEARING IN THE SILENCE? OKAY. I GUESS WE'RE CONFUSED ABOUT THE QUESTION BECAUSE YOU'RE ASKING ABOUT A PARTICULAR CIRCUMSTANCE.

YEAH, SORRY.

GO AHEAD. ARE YOU ASKING IF HE'S COMFORTABLE SWITCHING FIRMS FOR THE WORK IS GETTING DONE? YES. AND I'M NOT NECESSARILY SURE THAT THIS REQUIRES SWITCHING FIRMS. THAT'S A DECISION TO BE MADE BY EITHER THE BOARD OR BY THE ADMINISTRATION.

THIS SITUATION WOULD ALLOW BUT IT ISN'T NECESSARILY MANDATE.

SO I DON'T KNOW THAT IT'S SOMETHING THAT WE NEED TO HAVE A DISCUSSION ABOUT RIGHT NOW.

OKAY. IN THIS PARTICULAR VENDOR.

SO UNDER THE CODE OF SILENCE.

OKAY, OKAY, OKAY.

THAT'S ALL I WAS TRYING TO UNDERSTAND AND IS APPROPRIATE WAY AS I COULD.

THANK YOU. THANK YOU FOR KEEPING ME WITHIN THE LINES.

LET ME ADD THIS.

WITHIN THE SOLICITATION THAT WE RELEASED, WE PROVIDED THEM A VERY, VERY DETAILED WHAT THE AUDITS THAT THE DISTRICT PERFORMS. HOWEVER, WHEN IT GOT TO THE SECOND PHASE, WHEN WE BROUGHT THEM IN FOR INTERVIEWS, THE DISTRICT, THE COMMITTEE, IF YOU WILL, PROVIDED A LIST OF QUESTIONS SO THAT EVERY VENDOR COMING IN WOULD HAVE THOSE LIST OF QUESTIONS TO PREPARE FOR THEIR INTERVIEW, ALONG WITH THE AVAILABILITY TO BRING TEAM MEMBERS THAT MIGHT PERFORM SOME OF THE AUDITS.

SO WE WERE VERY TRANSPARENT IN WHAT WE WERE LOOKING FOR AND THE WORK THAT NEEDED TO BE DONE.

AND SO I FEEL CONFIDENT IN THOSE INTERVIEWS THAT THEY WERE ABLE TO SPEAK TO PERFORMING THOSE AUDITS.

THAT'S VERY HELPFUL.

THANK YOU.

ANY OTHER QUESTIONS FOR MY COLLEAGUES? I JUST HAVE ONE QUESTION ON THE PROCESS.

AND AGAIN, PUT ME ON MUTE.

IF THIS IS NOT IF IT CAN'T BE ANSWERED, WE HAVE THE RECOMMENDATION NOW, WHAT HAPPENS IF PRICING COMES BACK AND IT DOESN'T MEET THE EXPECTATIONS? DOES THE PROCESS START AGAIN? OR WHAT HAPPENS IF YOU CAN'T NEGOTIATE A PRICE THAT THE DISTRICT IS WILLING TO PAY? SO TYPICALLY WHAT HAPPENS IS IF WE DON'T NEGOTIATE, IF WE CAN'T NEGOTIATE A PRICE, WE CAN THEN GO TO THE NEXT VENDOR IN RANK. SO IT WOULD BE WE WOULD GO TO THE NUMBER TWO AND THEN WE WOULD GO TO THE NUMBER THREE.

IN THAT ORDER. AGAIN, TRUSTING YOU'RE GOING TO CUT ME OFF.

BUT MY NEXT QUESTION TO THAT BECOMES.

DO YOU HAVE TO GO TO NUMBER TWO IF YOU FEEL THAT NUMBER TWO IS NOT GOING TO MEET AFTER YOU VETTED THEM THROUGH THIS PROCESS? THEY DIDN'T COME UP TO BE NUMBER ONE.

DO YOU HAVE TO AUTOMATICALLY GO TO NUMBER TWO OR DO YOU REASSESS AT THAT POINT IF THIS IS THE RIGHT PERSON FOR THE WORK OR NOT? SO WE COULDN'T SKIP.

WE HAVE TO NEGOTIATE WITH NUMBER TWO.

WE COULDN'T SKIP NUMBER TWO TO GO TO NUMBER THREE.

SO IF THE EVALUATION TEAM.

RIGHT, IF WE COULDN'T COME TO TERMS ON WITH NUMBER ONE AND WE WANTED TO GO TO NUMBER TWO, WE WOULD I WOULD MAKE THE RECOMMENDATION THAT WE JUST CANCEL THE PROJECT. BUT WE CAN'T SKIP NUMBER TWO TO GO TO NUMBER THREE.

OKAY. SO WHAT I HEARD IN THAT IS YOU CAN SKIP THE PROJECT, WE CAN CANCEL THE PROJECT.

[00:20:02]

WE GET TO A PART IN THE PROCESS WHERE WE'RE LIKE, ACTUALLY, THERE'S NO ONE OUT THERE THAT CAN DO THE SCOPE OF WORK WE WANT FOR THE PRICE THAT WE HAVE AVAILABLE TO SPEND.

THEN THAT BECOMES THE DECISION.

DO WE CONTINUE TO PURSUE OUTSIDE OR DO WE GO BACK TO AN IN-HOUSE THING? AND IT SOUNDS LIKE THERE IS THE POSSIBILITY FOR THAT CONVERSATION.

HOPEFULLY NOT. BUT IF.

TRUSTEE DEIGAARD, I WANT TO BE VERY, VERY CLEAR.

THE EVALUATION COMMITTEE HAS RANK ORDERED THESE VENDORS.

THE EVALUATION COMMITTEE IS NOT GOING TO RE RANK ORDER OR ANYONE ELSE WHEN IT COMES IF YOU'RE UNABLE TO COME TO NUMBER ONE.

SO THERE'S NOT GOING TO BE A DIFFERENT EVALUATION.

IT'S EITHER GOING TO BE NUMBER TWO OR THE BOARD IS GOING TO ADVISE MS. LICATA TO CANCEL THE PROJECT.

THAT'S WHAT NUMBER TWO IS NUMBER TWO.

OKAY. AND IF I JUST MAY ADD.

IT WOULDN'T GO BACK. I JUST WANT TO BE CLEAR.

IT WOULDN'T GO BACK TO THE EVALUATION COMMITTEE.

THEY'VE ALREADY BY THIS BY A TWO STEP PROCESS THEY'VE ESSENTIALLY SAID I WOULD BE COMFORTABLE WITH ONE OF THESE THREE, BUT THEY WOULD COME IN FOR INTERVIEWS AND THEY'VE RANKED THEM AS MS. MCBRIDE JUST STATED, THEY WOULDN'T GO BACK.

WHAT WE WOULD DO, THE PURCHASING DEPARTMENT WOULD SAY, YOU NEED TO PROVIDE US PRICING.

WE WOULD TAKE THAT PRICING BACK.

AND IF THAT PRICING WAS ACCEPTABLE, WE'D MOVE FORWARD.

IF WE COULDN'T COME TO TERMS WITH THE PRICING, WE WOULD GO TO NUMBER THREE.

SO IT ISN'T ON YOUR PERFORMANCE.

DO YOU HAVE THE STAFF? WE'VE ALREADY EVALUATED THAT THIS IS SOLELY ON PRICE NOW WE'RE NEGOTIATING PRICE.

OKAY. AND THAT'S NOT DONE BY THE EVALUATION COMMITTEE.

BECAUSE YOU'VE ALREADY DETERMINED THAT ALL THREE MEET THE QUALIFICATIONS.

THE EVALUATION COMMITTEE DETERMINED THAT ALL THREE OF THOSE MET THE CRITERIA IN THE OVERALL ASSESSMENT OF THE 7 TO SHORTLIST TO THREE. OKAY.

THIS IS ALL A MINI LESSON IN HOW THIS PROCESS WORKS.

SO. OKAY.

THANK YOU. ALL RIGHT.

ANY OTHER QUESTIONS FROM MY COLLEAGUES ABOUT THIS? OKAY. ALL RIGHT.

THANK YOU. YOU'RE WELCOME.

[INTERNAL AUDIT PLAN]

AND BUT FIRST, I'D LIKE TO AS YOU CAN SEE, MR. BLACKWELL IS NOT HERE. THANK HIM FOR HIS DEDICATED SERVICE TO HISD FOR THE SIX YEARS THAT HE WAS CHIEF AUDIT EXECUTIVE.

I'VE BEEN FILLING IN FOR A COUPLE OF MONTHS HERE, AND IT'S MY PLEASURE TO HELP US STAY ON TRACK.

WE'VE HAD WE HAVE A VERY THOSE THAT ARE LEFT IN OUR TEAM WE ARE VERY EFFICIENT AND EXPERIENCED ALONG WITH OUR EFFICIENT TOOLS AND TECHNOLOGY THAT HAS HELPED US STAY ON TRACK. SO THAT'S WHAT I'M GOING TO TALK ABOUT.

THE PLAN HERE.

WE ARE A VERY SMALL TEAM, BUT LUCKILY WE WERE ABLE TO ALSO SOURCE SOME OF OUR AUDITS OUT TO OUR APPROVED VENDORS.

SO TO GET STARTED, THIS IS AN OVERVIEW OF THE AUDIT PLAN OF OUR AUDIT PLAN PROGRESS.

AS YOU MAY REMEMBER, IN OCTOBER, THE 18 MONTH AUDIT PLAN WAS APPROVED BY THE BOARD.

AND THESE ARE THE BUCKETS.

THESE ARE THE CATEGORIES THAT WHERE THE RISKS WERE IDENTIFIED TO DETERMINE WHICH AUDITS WE NEEDED TO TO COVER IN THESE 18 MONTHS.

SO THE CATEGORIES ARE ENTERPRISE RISK ASSESSMENTS THAT CAME OUT OF THE ANNUAL RISK ASSESSMENT.

SO WE DO THE ANNUAL RISK ASSESSMENT PRIOR TO DEVELOPING AN AUDIT PLAN EVERY YEAR.

SO WE DO THE ENTERPRISE RISK ASSESSMENT AND AN IT RISK ASSESSMENT.

THERE'S ALSO OTHER AREAS WHERE AUDITS ARE IDENTIFIED AND THAT'S THAT BUCKET, WHETHER IT'S IT COMES IN FOR REFERRAL FROM THE CHIEFS OR THE INTERNAL AUDIT TEAM FROM AUDITS, MAYBE THAT DIDN'T GET COVERED IN ANOTHER YEAR.

BUT AND THEY'VE COME UP COME OUT OF CURRENT AUDITS OR MAYBE INVESTIGATIONS FROM ETHICS AND COMPLIANCE.

SO THAT'S THE OTHER AUDIT SECTION.

AND THEN FOLLOW UP AUDITS ARE BASED ON AUDITS, AUDIT REPORTS THAT CAME OUT.

THEY HAD SOME SOME ISSUES AND WE WERE FOLLOWING UP ON THOSE.

AND THEN THE LAST SECTION WE'VE ALSO BEEN WORKING ON, THERE WERE 32 OPEN AUDITS STILL IN PROGRESS WHEN THE AUDIT PLAN WAS APPROVED.

SO THAT'S THE PRIOR YEAR AUDITS IN PROGRESS.

[00:25:02]

RIGHT. IN 2018.

HE HE HE ALREADY HAD WHEN HE CAME ABOARD, HE ALREADY HAD AUDITS THAT WERE NEEDED TO BE CLOSED FROM PRIOR YEARS.

SO WE'VE BEEN CATCHING UP EVERY YEAR.

AND THEN THE COVID YEAR, OF COURSE, DIDN'T HELP.

OKAY. SO GOING TO THE NEXT SLIDE.

SO THAT MEANS LOOKING AT THIS NUMBER OF AUDITS.

SO THAT'S 64 SINCE THE AUDIT PLAN WAS APPROVED.

OKAY. NOW HERE'S A GOOD VISUAL.

AND THESE ARE ALSO RANKED IN THE BUCKETS CATEGORIZED IN THOSE BUCKETS.

NUMBER OF AUDITS, 64 WE'VE COMPLETED 19 STARTED 18 POSTPONED AND POSTPONED MEANS FROM THOSE THE AUDIT YEAR WHERE THEY SAID WE WANTED TO COVER IN 20 THIS FISCAL YEAR.

THOSE ARE THE ONES POSTPONED THEN IN YELLOW THAT YOU'LL SEE.

TWO ARE BEHIND SCHEDULE.

AND SO RIGHT WHAT WE'VE BEEN WORKING ON SINCE JANUARY WERE 50 AUDITS AND WE'RE 14 WE GRAYED OUT BECAUSE WE'RE NOT GOING TO DISCUSS.

THOSE AREN'T IMPORTANT TO US RIGHT NOW.

WE'RE GOING TO COVER THOSE IN ANOTHER FISCAL YEAR.

SO THERE'S THE PIE CHART, YOU CAN SEE HOW IT'S WORKING OUT.

SO YOU'RE GOING TO SEE THE COLOR CODES AS WE GO ALONG.

GREEN ARE THE ONES WE STARTED AND BLUE MEANS WE ISSUED THOSE REPORTS.

SO THESE ARE BY THE BUCKETS, HOW THE AUDITS WERE IDENTIFIED, ENTERPRISE RISK ASSESSMENT.

WE'VE STARTED TO, AS YOU CAN SEE, THESE HOW THEY WERE PLANNED OUT IN THE FALL WHEN WE PLANNED THE AUDIT PLAN.

YOU CAN SEE BLUE WAS FOR THIS FISCAL YEAR 22-23.

AND I WAS MY FOCUS WAS TO MAKE SURE WE STAYED ON TRACK OR DURING PLANNING IF IT WAS IDENTIFIED THAT IT WASN'T PRACTICAL BASED ON THE AUDITING ENVIRONMENT OR OUR RESOURCES, THAT WE MOVED IT AND IT WOULD HAVE BEEN YELLOW.

BUT AS YOU CAN SEE, WE'RE IN FIELD WORK ON THOSE TWO.

THE NEXT PAGE IS THE IT RISK ASSESSMENTS.

AND YOU DID MEET WITH BDO IT EARLIER.

THEY'RE ON TRACK.

THEY'RE ACTUALLY AHEAD OF SCHEDULE AND ONE REPORT HAS BEEN ISSUED.

THESE ARE THE OTHER AUDITS IDENTIFIED IN OTHER MEANS BESIDES THE RISK ASSESSMENTS.

AND WHAT I DID WAS JUST SO THAT IT'S CONSISTENT WITH WHAT YOU'VE SEEN IN THE PAST.

IF I LEFT THE SAME WORDING, BUT I PUT IT IN A DIFFERENT FONT, ADDITIONAL INFORMATION OR NEW INFORMATION.

SO AS YOU CAN TELL, ON LINE 13.

BELLAIRE HIGH SCHOOL WILL REPLACE LAWSON, WHICH WAS ORIGINALLY PLANNED UP ABOVE ON LINE FIVE BARRICK ELEMENTARY AUDIT REPLACED RIVER OAKS AFTER LOOKING INTO AFTER DOING OUR PLANNING PHASE, WE NEEDED TO SWAP THAT OUT.

AND SPECIAL PROJECT JOHN GARWIN DID FOR CONSTRUCTION LINE 12.

HE DID A LESSONS LEARNED REPORT FOR CONSTRUCTION SERVICES AND THAT'S GOING TO BE IN GREEN INSTEAD OF ISSUED BECAUSE AS FURTHER WORK IS REQUESTED, WE KEPT THAT OPEN.

SO THAT'S A SPECIAL PROJECT.

SO YOU WON'T SEE THAT ON OUR OUR LIST OF AUDITS BECAUSE IT'S A SPECIAL PROJECT.

AND TWO REPORTS WERE ISSUED HERE.

IF IT'S GRAYED OUT, LIKE I SAID, THAT MEANS THAT IT'S IN ANOTHER FISCAL YEAR.

SO WE'RE NOT LOOKING AT THAT TODAY.

FOLLOW UP AUDITS TWO, ARE YELLOW BECAUSE LBB WE NEED MORE INFORMATION. LEE, DO YOU WANT TO MENTION THAT THE LBB.

OH YES. YOU NEED TO TURN YOUR MIC ON OVER THERE.

YES, WE HAVE THE STATUS REPORT FOR THE FOLLOW UP AUDIT IN APRIL 2022.

WE PAUSE ON THIS AUDIT BECAUSE WE NEED THE FURTHER INFORMATION FROM THE ADMINISTRATION.

THERE'S 87 RECOMMENDATIONS IN SCOPE AND THEY ALSO HAVE SUBCOMPONENTS TO EACH RECOMMENDATIONS.

THIS ADDS UP OVER 100.

SO AS OF TODAY, AS OF APRIL, I'M SORRY, AS OF APRIL, WE'RE STILL WAITING FOR OVER 100 RECOMMENDATIONS.

THE EVIDENCE FOR THE RECOMMENDATIONS TO CONTINUE ON THIS AUDIT.

SO WE PUT THIS POSTPONE UNTIL THE ADMINISTRATION IS READY SO WE CAN CONTINUE ON THIS AUDIT.

AND FOR THE SPECIAL ADD, WE NEED TO REINSTATE MACLAREN JONES, WHICH IS OUR OUTSOURCE FIRM.

THEIR STATUS TO BE ON THE TRACK, THEY NEED TO FILL OUT THE FORM TO REINSTATE THEIR STATUS SO THEY CAN CONTINUE ON THIS FOLLOW UP AUDIT . AND THEREFORE WE POSTPONE THIS AUDIT UNTIL THEY ARE READY.

AND WE ALSO HAD STAFF TURNOVER FOR THE SPECIAL EDUCATION AUDIT.

[00:30:04]

GREAT. OKAY.

THANK YOU. THANK YOU.

[REVIEW LAST YEAR’S AUDIT COMMITTEE ANNUAL REPORT]

THESE WERE IN PROGRESS WHEN THE AUDIT PLAN WAS APPROVED BACK IN THE FALL.

SO AS YOU CAN SEE, WE'VE MADE A LOT OF GOOD PROGRESS.

AS YOU CAN SEE ON THE RIGHT IN BLUE, THOSE WERE THE ISSUED REPORTS.

TWO ARE IN REPORTING PHASE AND ONE IS IN YELLOW.

SO WE HAVE DECIDED THAT THAT NEEDED IT LET'S SEE FIELD WORK.

OKAY. THIS WE ALSO HAD TURNOVER IN THIS AUDIT AND WE NEED TO REVISIT IT.

SO THAT'S GOING TO WE'RE GOING TO POSTPONE THAT A LITTLE BIT UNTIL WE HAVE THE RESOURCES AND RED AS YOU CAN SEE IN CONSTRUCTION, WE DO HAVE A COUPLE OF RED ONES, MELINDA OR JOHN, IF YOU WANT TO TALK ABOUT 12, AND 13.

IS THIS ON? YES.

OKAY, GOOD. OKAY.

IT'S CONSTRUCTION AUDITS ON AUSTIN AND SAM HOUSTON HIGH SCHOOLS.

I HAD AN EMPLOYEE WORKING ON THOSE.

AND LET'S JUST SAY WITHOUT GETTING INTO TOO MUCH DETAIL, I HAD TO TERMINATE HIM.

AND WHEN I WENT BACK AND LOOKED AT THE PAPERWORK, IT WAS NOT UP TO STANDARD.

AND I WOULD JUST MELINDA AND I AGREED, WE'RE JUST GOING TO REDO THE WHOLE THING.

OKAY. RIGHT.

OKAY, SO LET'S SEE.

ANYTHING ON THIS ONE? NOPE. ALL RIGHT.

SO THAT IS AN OVERVIEW OF THE AUDIT PLAN, AND I FEEL GOOD ABOUT IT.

WE'VE MADE SOME GOOD HEADWAY.

WE'RE ON TRACK.

SO LUCKILY, WE YOU KNOW, WE HAD SOME MONEY IN OUR BUDGET WHERE I COULD OUTSOURCE TO SOME OF THE AUDITS AS WELL TO BDO AND WHITLEY PEN OUR APPROVED VENDORS. SO NOW AS YOU GUYS ARE FAMILIAR WITH THE AUDIT DASHBOARD, THE WAY THIS WORKS IS YOU DO THE DROPDOWN IN THE TOP LEFT CORNER.

[AUDIT DASHBOARD]

THE AUDIT DASHBOARD MANAGEMENT AS WELL AS THE BOARD ALL HAVE ACCESS TO THIS SO YOU CAN STAY ON TOP OF HOW WE'RE DOING WITH THE AUDITS AND WHERE EVERYTHING IS.

THE LEFT SIDE ARE AUDITS BY DEPARTMENT AND THE RIGHT SIDE ARE RECOMMENDATIONS.

SO AS REPORTS ARE ISSUED, THE FINDINGS AND RECOMMENDATIONS ARE ENTERED INTO THE SYSTEM AND THEN THEY WILL POPULATE HERE AS WE CLOSE THEM OUT.

SO AS ACTION ITEMS, AS ITEMS ARE TO BE COMPLETED, WE'LL FOLLOW UP WITH THEM, GET THE EVIDENCE FROM MANAGEMENT AND UPDATE THIS THAT THEY'VE BEEN COMPLETED. SO WE'LL NEVER HAVE THAT BACKLOG OF FINDINGS AGAIN.

OKAY. NOW NEXT SLIDE IS ALL THE REPORTS THAT WERE ISSUED THIS QUARTER.

[AUDIT FINDINGS AND RECOMMENDATIONS]

SO WITH THAT, THE NUMBER OF AUDIT FINDINGS AND RECOMMENDATIONS ARE 48.

SO WE'LL BE WORKING THROUGH THAT.

WE HAVE A PROCESS IN PLACE.

LIKE I SAID, AS THE REPORTS ARE ISSUED, WE ENTER THEM INTO OUR SYSTEM AND THEN THEY UPDATE THE DASHBOARD AND THEN WE'RE ALERTED TO CLOSE THEM OUT. AS THEY COME OPEN, WE'LL WORK WITH MANAGEMENT TO GET THE EVIDENCE AND THEN THE DASHBOARD WILL REFLECT THAT.

SO AS WE GO THROUGH REPORTS, THIS MIGHT BE SOMETHING FOR THE AUDIT COMMITTEE TO DISCUSS FURTHER IN ANOTHER MEETING.

BUT RIGHT NOW, WE'RE NOT RANKING OUR FINDINGS BY HIGH, MEDIUM AND LOW RISK.

SO YOU GUYS MAY AS THAT LAST SLIDE YOU MAY HAVE WANTED TO SAY, OH, WELL, HOW DO WE KNOW WHAT'S IMPORTANT? SO THIS MIGHT BE SOMETHING THAT CAN HELP US IN THAT AREA.

THESE ARE THE DEFINITIONS THAT WE'VE COME UP WITH AND IT'S UP FOR DISCUSSION.

I KNOW WE NEED TO DECIDE A CUT OFF.

WHEN ARE WE GOING TO START? IF WE DECIDE THIS, WHEN ARE WE GOING TO IMPLEMENT IT? WE HAD SO MANY REPORTS TO CATCH UP ON THIS QUARTER.

WE DIDN'T IMPLEMENT THEM.

AND, YOU KNOW, AND THEN THERE'S GOING TO BE I MEAN, THERE'S JUST A LOT TO GO WITH WHEN WE DECIDE IF WE DECIDE TO IMPLEMENT THAT IN OUR REPORTS.

OKAY. THIS IS THE 471 INFAMOUS OLDER AUDIT RECOMMENDATIONS.

SO WE HAD PLANNED TO CLOSE THEM ALL OUT.

BUT AS WE WENT THROUGH THEM, THERE WAS SOME JUST THERE'S TOO MANY VARIABLES.

[00:35:03]

SO I DON'T KNOW IF YOU WANTED TO COME UP AND TALK ABOUT IT.

NO. OKAY.

BECAUSE THERE'S A FEW THAT ARE OPEN.

AND I JUST WANT JUST BECAUSE WE KEPT SAYING WE'RE GOING TO HAVE THEM CLOSED BY MARCH, BUT THERE'S JUST, YOU KNOW, SPECIAL CIRCUMSTANCES.

SO I JUST WANTED TO IF YOU CAN COME UP AND SO WE'VE YOU KNOW, THERE'S EIGHT IN OFFICE OF TALENT 22 IN IT AND SIX IN FINANCE AND WE'RE WORKING THROUGH THEM.

SO I THINK WE'VE MADE A LOT OF PROGRESS.

YEAH. SO, THOSE WE ARE AWARE OF AND WE'RE DEFINITELY WORKING THROUGH THEM.

THERE ARE A COUPLE OF BUCKETS THAT THEY FALL IN.

ONE IS STAFFING.

THERE ARE SOME WHERE IT WAS ADDRESSED BY SOME STAFF THAT ARE NO LONGER HERE.

SO THERE ARE GAPS IN STAFF AND WE ARE TRYING TO IDENTIFY AND LOOK AT HISTORICAL DATA IN ORDER TO IDENTIFY THOSE OLDER AUDITS.

THESE ARE THOSE AUDITS THAT ARE BEFORE 2022, GOING BACK SEVERAL YEARS, SEVERAL YEARS BACK.

THERE ARE ALSO SOME WHERE IT'S DISTRICT WIDE IMPLEMENTATION, WHICH IS A COORDINATION ACROSS A VARIETY OF DIFFERENT DEPARTMENTS.

AND SO COORDINATING THAT THERE MAY BE SOME POLICY ISSUES, SOME POLICY ITEMS THAT NEED TO BE DISCUSSED THAT WILL COME UP IN LATER BOARD MEETINGS SO THAT THOSE POLICIES ARE IN PLACE IN ORDER TO IMPLEMENT SOME OF THOSE STRATEGIES FOR THOSE RECOMMENDATIONS.

SO THOSE ARE GOING TO TAKE TIME.

SO WE MOVED OUR ORIGINAL DATE IN THESE LAST ONES THAT WE STILL ARE ACTIVELY WORKING ON TO A TARGET DATE OF MAY.

OF THOSE 36, WE ARE CONFIDENT THAT WE'RE ON TARGET FOR STILL ABOUT HALF OF THEM TO BE ABLE TO MEET IN MAY.

BUT THERE ARE SOME THAT ARE STILL WITH THE DISTRICT WIDE IMPLEMENTATION MAY GO A LITTLE LONGER THAN THAT.

AND WORKING WITH INTERNAL AUDIT WILL KEEP KEEP THEM UPDATED.

GREAT. THANK YOU.

OKAY. SO BEFORE I GO INTO ETHICS AND COMPLIANCE, WOULD YOU LIKE TO ASK ANY QUESTIONS OF INTERNAL AUDIT? QUESTIONS FROM MY COLLEAGUES.

TRUSTEE WADE.

ON PAGE 24 WHEN YOU WERE JUST TALKING.

WE COULD GO BACK, I THINK, WHEN YOU WERE JUST ASKING ABOUT THE RANKINGS.

WHEN WOULD YOU ALL RECOMMEND THAT YOU START BASED ON ALL OF WHAT YOU'RE TRYING TO CATCH UP ON IMPLEMENTING THE HIGH RISK, MEDIUM RISK, LOW RISK? I MEAN, WOULD YOU SAY IN THE FALL? I MEAN, I THINK THAT'S UP TO YOU ALL WHEN YOU ALL THINK YOU ALL COULD START.

OKAY. YEAH, WE'LL GIVE THAT SOME THOUGHT.

YOU KNOW, THERE'S JUST BEEN A LOT OF MOVING PARTS LATELY TO SIT BACK AND REALLY DECIDE IT WOULD BE NICE TO FINISH OFF THE OTHER FISCAL YEARS AND THEN AND THEN START FRESH.

SO POSSIBLY FOR, YOU KNOW, STARTING IN FISCAL YEAR 2024.

24. YEAH. AND SO.

I APPRECIATE YOUR GOING THROUGH THIS PROCESS AND EVALUATING WHAT THOSE RISKS WOULD LOOK LIKE WHAT THOSE RANKINGS NEED TO BE.

SO THANK YOU. YEAH, I THINK IT WOULD HELP WITH THE DISCUSSIONS.

I HAVE A I GUESS I'LL ASK THIS QUESTION RIGHT NOW ABOUT THE CONSTRUCTION AUDITS.

I SEE A LOT OF FOLLOW UP AUDITS ON THE SATTERFIELD PONTICUS.

YOU SEE THE WELL, I'VE JUST SEEN A BUNCH OF AUDITS FOR SATTERFIELD PONTICUS.

YES. IT'S HURRICANE HARVEY, THE FOUR SCHOOLS.

OKAY. SO THOSE WERE ALL HARVEY RELATED? WELL, YES.

WHAT HAPPENS IS I'M STILL FINALIZING OR GETTING THE MANAGEMENT RESPONSE FINALIZED FOR THE ORIGINAL REPORT.

I WROTE THE ORIGINAL REPORT AS ONE REPORT FOR FOUR SCHOOLS, BUT THEN I WAS GOING TO ASSIGN FOLLOW UPS OUT TO DIFFERENT STAFF MEMBERS.

THAT'S WHY I BROKE THOSE OUT AND I'LL BE FOLLOWING UP AS SOON AS I GET THE MANAGEMENT RESPONSE BACK ON THE ORIGINAL REPORT.

I'LL WAIT A LITTLE BIT AND THEN I'LL FOLLOW UP ON EACH OF THE FINDINGS TO ENSURE THAT CONSTRUCTION SERVICES ADDRESS THE FINDINGS.

AND I'LL DO THOSE IN SEPARATE REPORTS BECAUSE I WAS GOING TO I WAS GOING TO ALLOCATE THOSE TO DIFFERENT STAFF MEMBERS.

THE PROBLEM IS RIGHT NOW, MELINDA AND I ARE IT.

OKAY. ALL RIGHT.

I APPRECIATE THAT. I WAS JUST CURIOUS ABOUT THAT.

AND THEN I HAD ANOTHER ONE FOR LATER, BUT I'LL ASK THE OTHER ONES LATER.

THANK YOU. MS. LOGAN. I LOVE THE RANKINGS.

I LOVE THEM. OKAY.

DO YOU THINK THAT ONCE YOU GET THE RANKINGS IN PLACE, THAT THE RANKINGS WILL DRIVE HOW QUICKLY SOMETHING NEEDS TO BE REMEDIATED?

[00:40:09]

LOW RISK, MAYBE IT COULD TAKE LONGER.

HAVE YOU GUYS CONTEMPLATED THAT AT ALL? I THINK IT WOULD GET THE ATTENTION IT DESERVES.

AND SO, YOU KNOW, I KNOW YOU GUYS WILL PROBABLY FOCUS ON IT, LIKE, HOW IS THIS GOING? AND SO IT COULD HELP GET ANYTHING THAT'S IDENTIFIED AS HIGH RISK, DEFINITELY ADDRESSED IN A PRIORITY.

OKAY. THANKS.

THANKS. TRUSTEE CRUZ.

DEFINITELY LIKE THE HIGH, MEDIUM LOW AS WELL AND WOULD LIKE TO SEE THAT AS SOON AS POSSIBLE.

THAT MAKES SENSE FOR EVERYONE'S CAPACITY.

THANK YOU. JUST BECAUSE I THINK IT HELPS PAINT A BETTER PICTURE, NOT JUST FOR THE AUDIT COMMITTEE AND THE FULL BOARD, BUT ALSO THE ADMINISTRATION AS THEY'RE REMEDIATING THE RISKS.

THE DASHBOARD.

I AM STILL HAVING PROBLEMS. I DON'T KNOW IF ANY OF MY OTHER COLLEAGUES.

I GET THE SAME ERROR.

I'M STILL GETTING THE SAME ERROR.

I'VE TALKED TO LEE ABOUT THIS SEVERAL TIMES AND I THINK IT IS AWARE.

I MEAN, LIKE EVERY TIME I TRY, I CONNECT TO THE WI-FI DISCONNECT.

IT'S STILL THE SAME. SO I DON'T KNOW WHY WE DON'T HAVE ACCESS AND IT ALWAYS JUST SAYS UPGRADE THE POWER BI LICENSE.

SORRY ABOUT THE ACCESS ISSUE.

I HAVE THE SAME ISSUE AS WELL.

I THINK THERE'S A LICENSING ISSUE AND I HAVE DAMIAN COME TO THIS MEETING AND HE MAY HELP TO EXPLAIN.

THANK YOU. THEN YOU WANT TO COME TO THE FRONT.

ALL RIGHT. GOOD AFTERNOON, EVERYONE.

DAMIAN RANDALL, IT MANAGER, APPLICATION SUPPORT AND ACCESS.

ACTUALLY, I'VE BEEN IN CONTACT WITH PROSPER WILLIAMS AND HE'S GOING TO COME AROUND TO EACH OF YOU INDIVIDUALLY TO WORK WITH YOUR DEVICES TO MAKE SURE THAT THAT'S SET UP FOR YOU PROPERLY. THANK YOU SO MUCH.

I'VE ALREADY INFORMED HIM OF IT.

APPRECIATE IT. THANK YOU.

AND THEN IN TERMS OF THE ALL OF THE AUDIT FINDINGS THAT WERE STILL OPEN, WERE ANY OF THOSE 471.

JUST LIKE NOT ADDRESSED BECAUSE IT WAS SO OLD AND NOT LIKE I FEEL LIKE THAT SLIDE DOESN'T SAY IT JUST SAYS THEY'VE BEEN ADDRESSED.

BUT WERE THEY ADDRESSED IN THE SENSE OF LIKE, OKAY, NOW WE JUST WE DON'T NEED TO WORRY ABOUT IT ANYMORE BECAUSE IT'S LIKE FIVE YEARS OLD OR SOMETHING.

OKAY. LEE.

YES, I THINK THERE'S A COUPLE OF THEM WE IDENTIFIED AS IRRELEVANT.

LET ME PULL UP MY SUPPORT.

AND THANK YOU FOR WAITING FOR THIS INFORMATION.

AND WE ARE GOING TO HAVE A FINAL REPORT BY MAY 31ST, AND WE WILL GIVE YOU THE ENTIRE STATUS, INCLUDING THE RECOMMENDATIONS IDENTIFIED AS IRRELEVANT.

OKAY. AND THE MAIN REASON IS FOR THE IRRELEVANCE.

NOT BECAUSE THERE ARE TOO OLD BECAUSE OF THE CHANGE OF THE SYSTEM THAT THEY'RE NO LONGER VALID.

GIVE YOU AN EXAMPLE.

THE SCHOOL FOR THE STUDENT SYSTEMS. WE CHANGED FROM CHANCERY TO THE STUDENT SIS SYSTEM.

STUDENT INFORMATION SYSTEM.

SO IN THE PAST, WE IDENTIFIED THE RECOMMENDATION THAT THEY NEED TO IMPROVE THE ACCESS SECURITY FOR THE SCHOOL SYSTEM. NOW WE ARE CHANGING TO THE STUDENT INFORMATION SYSTEM, SIS.

THAT RECOMMENDATION NO LONGER VALID BECAUSE WE HAVE A NEW SYSTEM.

WE HAVE A NEW ACCESS TO REVIEW.

SO THAT RECOMMENDATION IS CONSIDERED IRRELEVANT ANYMORE.

SO WE HAVE A SIMILAR RECOMMENDATIONS THAT ALSO IRRELEVANT BECAUSE JUST THE CHANGE, THE CHANGE THE

[00:45:05]

SO WE CATEGORIZED AS IRRELEVANT AND AS IRRELEVANT.

OKAY. OTHER THAN THAT, ALL OTHER RECOMMENDATIONS WE GET THE EVIDENCE, WE VALIDATE AND WE EVALUATE AND WE CLOSE THEM WHEN IT'S FULLY IMPLEMENTED AND MITIGATE THE RISKS.

SO, OKAY, SO THESE 471 WERE FOR A SPECIFIC TIME PERIOD LIKE OLDER THAN I CAN'T REMEMBER WHAT THE DATE WAS, MAYBE 2022.

WAS THAT CORRECT? SURE.

YES. THE REASON FOR THAT, WE HAVE SOME RECOMMENDATIONS FROM THE AUDIT YEAR 26 AND 27.

THE REASON FOR THAT, BECAUSE WHEN WE START A 2018 AUDIT PLAN, WE WERE TOLD TO CONTINUE ON THE PRIOR YEAR'S AUDITS.

SO WE CARRIED THREE AUDIT PLANS IN ONE YEAR, 26, 27 AND 2018.

SO WE FINISHED 26.

AND THE 17 AUDIT PLAN WITH THE RECOMMENDATIONS IN 2018 THAT THE MANAGEMENT ADDRESSED, THAT THEY ARE GOING TO IMPLEMENT THEIR ACTION PLAN, THEY ARE GOING TO BE EFFECTIVE IN 2018 OR LATER.

THAT'S WHY YOU SEE SOME OLDER RECOMMENDATIONS SINCE LIKE FROM 2016 TO 17 BUT ACTUALLY COMPLETED IN 18.

YES. OKAY. THAT'S WHAT I THOUGHT. I JUST COULDN'T REMEMBER.

AND THEN CURRENT AUDIT RECOMMENDATIONS.

WHERE ARE WE DOCUMENTING THOSE AUDIT FINDINGS AND REMEDIATIONS? IS THAT ON THE DASHBOARD? YES. OKAY.

WHICH I'M HOPING TO HAVE ACCESS TO VERY SOON.

OKAY. MY LAST QUESTION, MISS CORRIGAN, SO YOU MENTIONED A COUPLE OF TIMES, YOU KNOW, STAFF TURNOVER AND SOME GAPS WHICH WE KNOW HAVE EXISTED.

ARE YOU USING EXTERNAL FIRMS TO FILL IN THOSE GAPS? YES. I MEANT TO POINT THIS OUT, THAT I HAVE THE COLUMN SERVICE PROVIDER, SO I'M SHOWING YOU WHICH AUDITS WE'RE USING FIRMS ON.

SO YOU'RE ABLE TO.

YEAH. SO ALEXIS, PROVIDED THE APPROVED VENDORS THAT I COULD USE, AND I HAVE.

AND LUCKILY, YOU KNOW, WE HAD MONEY IN THE BUDGET, SO WE BROUGHT IN BDO.

WE WERE ALREADY UTILIZING BDO IT.

I BROUGHT IN THE OTHER BDO TEAM, THE FINANCIAL TEAM, AS WELL AS CONTINUED WITH SELENA WHITLEY-PENN TO HELP ASSIST.

AND SO YES AND SO THAT'S LISTED ON IN THE SERVICE PROVIDER COLUMN.

ARE THERE ANY AREAS THAT YOU HAVE CONCERN LIKE YOU FEEL LIKE YOU DON'T HAVE THE SUBJECT MATTER EXPERTS INTERNALLY, EXTERNALLY TO FILL ANY OF THIS NEED? OR DO YOU FEEL LIKE YOU'VE GOT EVERYTHING COVERED? WELL, OF COURSE, CONSTRUCTION IS A SPECIAL AUDIT THEY'RE VERY SPECIALIZED.

SO LUCKILY, JOHN AND MELINDA HAVE STUCK WITH US THROUGH THIS.

SO I WILL WORK WITH THEM CLOSER.

IT'S JUST BEEN A VERY, VERY BUSY TWO MONTHS AND SEE WHAT THEY NEED.

BUT THEY'RE LETTING ME KNOW WHAT THEY MAY NEED.

IT'S JUST IF WE BRING IN SOMEBODY, IT'S, YOU KNOW, IT'S KIND OF HARD TO FIND.

OKAY. SO YOU'RE STILL KIND OF IN AN ASSESSMENT PHASE OF THIS AND THERE MIGHT BE SOME NEEDS THAT YOU HAVE NOT YET IDENTIFIED IS WHAT I'M HEARING.

YES. AS WE GET INTO THE PLANNING PHASE FOR THE NEXT AUDITS, YOU KNOW, NEW THINGS WILL GET UNCOVERED AND I'LL BE ABLE TO MOVE ON.

BUT, YOU KNOW, BECAUSE WE STILL HAVE PRIOR YEAR AUDITS TO WORK ON, IT'S KIND OF TAKING OUR FOCUS AS WELL AS KICKING OFF THE AUDITS THAT WERE ALREADY SCHEDULED FOR THE 18 MONTH PLAN. THAT WAS A PRIORITY.

YEP. AND I HAD TO GET MORE INVOLVED IN THOSE.

OKAY. THANK YOU.

ANYONE ELSE BEFORE I ASK MY QUESTIONS.

ON THE INTERNAL AUDIT PLAN.

SO AND I'M LOOKING AT IT ON MY IPAD, SO THE NUMBERS MIGHT BE SLIGHTLY OFF, BUT I THINK IT'S PAGE 15.

YEAH. SO SOME ARE BEHIND SCHEDULE.

IS THAT BECAUSE YOU DON'T HAVE THE RESOURCES YOU NEED? OR JUST LIKE, HOW CAN WE HELP? WELL, OKAY, WE TALKED ABOUT THE TWO THAT YOU'VE ALREADY MENTIONED ABOUT THE TURNOVER.

OKAY. THOSE ARE THE TWO ON BEHIND SCHEDULE.

OKAY. NOW THE 11 IS ONE.

YEAH. SO THOSE WERE THOSE THAT THE 18 MONTH PLAN LIKE, FOR INSTANCE, THIS PAGE, THE RISK ASSESSMENT, WE DIDN'T NEED TO CONDUCT A RISK ASSESSMENT RIGHT NOW BECAUSE WE ALREADY HAVE

[00:50:05]

SO WE'RE MOVING RIGHT ALONG. WE'RE GOING TO WAIT TO DO THAT RISK ASSESSMENT LATER.

SO THOSE WERE YELLOW.

AND THESE WE EXPLAINED AS WELL WITH MCCONNELL AND JONES AND OUR SPECIAL CIRCUMSTANCES THERE.

AND THIS IS ANOTHER SPECIAL CIRCUMSTANCES THAT'S NOT A HIGH PRIORITY.

WE COULD EASILY MOVE IT.

AND WE WERE ALWAYS TOLD THAT 18 MONTH PLAN WAS FLEXIBLE WHEN THEY CREATED IT.

SO, OKAY, THOSE ARE THE REASONS.

I REALLY APPRECIATE HOW YOU'VE LAID ALL THIS OUT AND IT JUST MIGHT HELP IN THE FUTURE TO JUST HAVE THAT LITTLE ASTERISK.

THIS IS WHY THIS ONE'S POSTPONED.

I MEAN, I THINK WE'VE HEARD SOME GREAT EXPLANATIONS FOR THAT.

WHICH LEADS TO MY NEXT QUESTION ABOUT THE LBB ONE ON I THINK IT'S PAGE 19.

NO. YES.

NO. OKAY.

YES. SO YOU'RE WAITING ON ADMINISTRATION TO BE READY.

SO MY QUESTION FOR YOU, SUPERINTENDENT HOUSE, LIKE I'M LIKE, WHEN WILL YOU BE READY? LIKE, WHAT'S THE TIMELINE FOR WHATEVER THEY NEED TO COMPLETE THIS AUDIT? YES. TRUSTEE DEIGAARD.

SO MY UNDERSTANDING OF THIS IS THAT WE'VE BEEN PROVIDING UPDATES TO THE BOARD REGARDING LBB AND THEN WHEN IT WAS GIVEN TO EXTERNAL AUDIT FIRM, THERE WAS KIND OF A DISCONNECT IN WHICH THEY HAD EXPECTED A DIFFERENT SET OF EXPECTATIONS AROUND THE INFORMATION WE HAD PROVIDED KIND OF A YEAR AFTER WE HAD STARTED THE REPORTING PROCESS. AND SO THAT WAS, I THINK WE KIND OF DISCUSSED THAT MAYBE A FEW MONTHS BACK.

SO THIS WAS THE FIRST I WAS HEARING ABOUT THE, HEY, THIS IS THE WHY IT'S NOT DONE.

I THINK FROM OUR SIDE, WE BELIEVE THAT WE HAD PROVIDED THAT INFORMATION.

SO I'M NOT 100% SURE OF THE DISCONNECT, BUT I THINK THAT'S IT.

OKAY. SO CAN WE HAVE MORE CLARITY THEN ON WHAT IS STILL NEEDED? YEAH, SURE. SO WE CAN COMPLETE THIS SO THAT THEY KNOW.

YEAH. WE'LL REACH OUT TO MACLAREN JONES TO GET MORE CLARIFICATION.

BASED ON THE 2000 APRIL 2012 STATUS REPORT FROM MACLAREN JONES THEY SAY THERE ARE THERE WERE 162 INADEQUATE DATA PROVIDED AND THEY WERE 125 DISTRICT IN PROCESS.

SO THEY HAVEN'T HAD EVIDENCE YET.

YEAH. AFTER THIS MEETING, WE REACH OUT TO MACLAREN JONES TO GET MORE CLARIFICATION TO SEE WHEN THEY NEED AND THEY CAN BACK ON THIS AUDIT.

OKAY. I THINK IT WOULD BE HELPFUL FOR THE ONES THAT ARE POSTPONED IS LIKE POSTPONED TILL WHEN AND WHY.

AND SO THAT BECAUSE I GET REAL ANXIOUS WHEN THINGS ARE JUST KIND OF, YOU KNOW, WHAT WAS GOING THROUGH MY HEAD IS AT SOME POINT I'M GOING TO LOSE ALL THE WEIGHT THAT I GAINED DURING COVID SO I CAN FIT INTO MY FAVORITE DRESSES AGAIN.

AND, YOU KNOW, IT JUST BECOMES SOMEDAY, SOMEDAY, SOMEDAY.

AND I THINK, YOU KNOW, TO HOLD OURSELVES ACCOUNTABLE TO THIS IS WHEN WE WANT TO REVISIT THIS SO THAT WE MAKE SURE THAT WE DO AND THAT WE CAN ADDRESS THE CHALLENGES OF WHY WE ARE POSTPONING IT WHERE THERE ARE CHALLENGES.

OH, OKAY. AND I HAD A SIMILAR QUESTION.

WHICH ABOUT THE SPED ONE, NUMBER TWO ON THE SAME PAGE.

AND IT SOUNDS LIKE BECAUSE OF STAFF TURNOVER, IS THAT STAFF TURNOVER IN THE SPECIAL ED DEPARTMENT OR IN THE AUDIT DEPARTMENT OR BOTH? INTERNAL AUDIT.

INTERNAL AUDIT. OKAY.

SO. OKAY.

AND THEN ALSO ON THE POSTPONE ONES, AND THIS ALSO GETS TO CALENDAR FIRST QUARTER, SECOND QUARTER OF FISCAL YEAR 22-23 ARE BEHIND US.

NOW WE'RE IN THIRD QUARTER AND SOME OF THESE ON A DIFFERENT PAGE WERE POSTPONED BUT DIDN'T HAVE KIND OF WHICH QUARTERS AND MAYBE THAT WOULD JUST ADDRESS THE QUESTION I HAD A MINUTE AGO OF LIKE WHEN.

RIGHT.

AND AUDIT DASHBOARD ON THE AUDIT DASHBOARD PAGE.

THE ONES THAT AREN'T STARTED.

SO THIS WHOLE BUCKET ON THE RIGHT, THESE ARE THE FOLLOW UP AUDITS, RIGHT? THOSE ARE RECOMMENDATIONS.

SO THE REPORT HAS TO BE ISSUED FOR THAT TO BE POPULATED.

OKAY. ON THE RIGHT. SO.

WHY IS IT ONLY AT 4% COMPLETE?

[00:55:02]

SO YOU ISSUE A REPORT.

THERE'S A DATE IN THE FUTURE THAT MANAGEMENT NEEDS TO REMEDIATE.

OKAY. SO THAT'S THE REMEDIATION DATE.

SO WE'VE ONLY FOLLOWED UP.

THEY'VE CLOSED SOMETHING SINCE IT'S THEY'VE CLOSED AN ACTION ITEM.

SO IF WE'RE JUST NOW ONLY THREE IN THE 18 MONTH AUDIT PLAN HAVE BEEN ISSUED.

OKAY. SO. AND DOES THIS ONLY MEASURE OUR CURRENT AUDIT PLAN.

YEAH. SEE THE TOP LEFT DROP DOWN? THAT'S THE AUDIT PLAN 2023.

YOU CAN DROP DOWN 2022.

YOU CAN ACTUALLY PUT THEM ALL TOGETHER ON ONE.

SO IF I WENT BACK TO 2022, I'M GOING TO SEE WAY MORE POPULATED ON THE RIGHT.

RIGHT. YEAH. GOT IT.

OKAY. THAT'S REALLY HELPFUL.

AND ONCE IT'S ONLINE, I CAN PLAY MORE.

YEAH. TO THE QUESTION ABOUT RANK FINDINGS, ABSOLUTELY.

IN MY HEAD THAT'S LIKE A TRIAGE.

AND I THINK, YOU KNOW, FOR ALL THE SAME REASONS MY COLLEAGUES HAVE LIFTED UP, WHEN YOU SAY START FISCAL YEAR 24, IS THAT LIKE JULY 1ST OR IS THAT OKAY? AND THEN I ALSO THINK THAT ANOTHER BENEFIT OF THAT BESIDES, YOU KNOW, EXPEDITING, AND PRIORITY THE ONES THAT ARE HIGHER RISK IS IF THERE'S EVER A NEED TO ADD THINGS TO THE AUDIT PLAN AND SOMETHING IS GOING TO HAVE TO GET SCALED BACK IN ORDER TO ACCOMMODATE IT.

IT ALSO HAS THAT SAME OPPORTUNITY OF TRIAGING LIKE WHERE IT FALLS IN ALL OF THAT.

SO, AND MY LAST QUESTION IS WHAT DO YOU NEED FROM US? IS THERE ANYTHING THAT WE CAN DO? WE KNOW THAT YOU HAVE ASSUMED A LOT OF ROLE AND RESPONSIBILITY HERE WITH A SKELETON STAFF AND NOW MULTIPLE TRANSITION VARIABLES OF ARE WE GOING TO OUTSOURCE OR NOT? AND WHO'S GOING TO BE ON THE COMMITTEE AND.

RIGHT. [LAUGHTER] SO HOW CAN WE SUPPORT YOU RIGHT NOW, IF ANYTHING? IS IT JUST LIKE ADJOURNING RIGHT NOW SO YOU CAN GO BACK AND DO EVERYTHING OR IS THERE MORE? RIGHT. AND WELL, JUST KEEP OUR INTERNAL AUDIT TEAM, YOU KNOW, APPRECIATE OUR INTERNAL AUDIT TEAM THAT IS STICKING AROUND TO DO THIS AND REALIZE THAT THOSE THAT ARE LEFT, THEY'RE VERY EXPERIENCED, THEY HAVE HIGH QUALITY, HAVE PUT HIGH QUALITY INTO THEIR WORK PRACTICES.

WE DO LOOK, I'VE REALLY SEEN THE QUALITY WORK THAT THEY'VE DONE AND WE'VE IMPROVED ON OUR COLLABORATION AND PROCESS IMPROVEMENT.

SO RIGHT NOW WE'RE WORKING WELL TOGETHER AND HAVING THE BUDGET TO CALL IN VENDORS AS NEEDED HAS BEEN A LIFESAVER. SO JUST HAVING YOUR SUPPORT.

GREAT. APPRECIATE IT.

IS THERE ANYTHING YOU HAVEN'T BEEN ABLE TO DO BECAUSE YOU EITHER DON'T HAVE THE SUPPORT OR CAN'T GET AN OUTSIDE FIRM.

I KNOW YOU HAVE A BUDGET, BUT IS THERE EVER AN IMPEDIMENT OF ANYTHING BESIDES THE CONSTRUCTION AUDITS, I GUESS.

RIGHT. OKAY.

I'LL HAVE TO GET BACK TO YOU ON THAT.

YOU KNOW, I GUESS IN A PERFECT WORLD, WE WOULD HAVE HAD NONE WE WOULD HAVE HAD NO YELLOW.

YOU KNOW, SO. YEAH. OKAY.

BUT THERE'S JUST SO MUCH YOU CAN DO.

YEAH, NO. AND VERY APPRECIATIVE TO YOU AND YOUR WHOLE TEAM BECAUSE I KNOW THIS HAS NOT BEEN AN EASY JOURNEY.

SO THANK YOU. THANK YOU.

BEFORE WE MOVE ON TO ETHICS AND COMPLIANCE, ANY OTHER COMMENTS OR QUESTIONS? OKAY. WHAT IS THE BEST WAY TO IF WE GET THE REPORTS, WE'RE LOOKING AT THEM AND WE HAVE FOLLOW UP QUESTIONS TO ANY OF THE REPORTS.

IS IT LIKE WE HAVE A STANDING ITEM AT OUR AUDIT COMMITTEE MEETINGS? IS IT LIKE A WRITTEN QUESTION AND ANSWER? LIKE, WHAT WOULD BE YOUR PREFERENCE FOR THAT MECHANISM? YES, I WOULD LIKE MORE DISCUSSION ON THOSE.

LIKE I SAID, WE'VE SO MANY REPORTS WERE ISSUED IN THIS PAST COUPLE OF MONTHS THAT THERE'S NOT TIME RIGHT NOW TO GO THROUGH THOSE IN DETAIL.

BUT THEN AS WE RANK THEM, AS WE HAVE THE RANKINGS, THAT'S GOING TO HELP THE DISCUSSION AS WE ISSUE REPORTS, YOU CAN REPLY BACK TO THE OFFICE OF INTERNAL AUDIT EMAIL THAT WE'RE NOW SENDING THEM OFF FROM SO YOU DON'T HAVE TO DIG FOR WHO SENT WHAT.

IT'S JUST THE OFFICE OF INTERNAL AUDIT AND REPLY BACK AND SAY I WOULD LIKE THIS IS VERY IMPORTANT AND LET'S DISCUSS IT OR ANY QUESTIONS YOU HAVE THERE THAT WOULD BE THE BEST WAY.

AND LIKE I SAID, AS WE RANK THESE HIGH, MEDIUM AND LOW RISKS, WE CAN BETTER FOCUS ON FOR THIS SITUATION, FOR DISCUSSION ITEMS AT THE AUDIT COMMITTEE.

[01:00:02]

AND HERE'S WHY.

JUST BECAUSE SURE, WE TRY TO READ AND UNDERSTAND EVERYTHING.

BUT YEAH, IT WOULD BE HELPFUL.

THAT'S GREAT. THANK YOU.

THANK YOU. INTO TRUSTEE CRUZ POINT, I THINK MOVING FORWARD, HOW WE COULD ADJUST THE AGENDAS TO WHAT ARE WE NOT TALKING ABOUT THAT WE SHOULD BE TALKING ABOUT WHAT COULD BE SOMETHING THAT IS JUST RECOMMENDED FOR US TO READ AND REVIEW WHERE WE DON'T HAVE TO HAVE AS MUCH? IF ANYTHING THAT DOESN'T WARRANT QUITE AS MUCH CONVERSATION AS WE MIGHT BE HAVING IF WE JUST ARE LOOKING AT IT IN ADVANCE.

SURE. YOU KNOW, PLEASE SHARE THOSE RECOMMENDATIONS FOR US.

THANK YOU. THANK YOU.

OH, SORRY. AND YOU SENT A REPORT RECENTLY ABOUT THE PRO CARD, RIGHT? ON AN AUDIT. WOULD THAT BE BEST IF I JUST REPLIED TO THAT? I HAVE A QUESTION REGARDING THAT ONE.

YES, JUST EMAIL.

THAT WOULD BE GREAT REPLY TO THAT EMAIL.

FAIR ENOUGH. THANK YOU. THANKS.

AND COULD THE REPLY COME TO THE FULL AUDIT COMMITTEE? JUST FOR OUR INFORMATION.

IF SO, A TRUSTEE ON THE AUDIT COMMITTEE SUBMITS A QUESTION.

CAN THE RESPONSE COME TO THE FULL AUDIT COMMITTEE? YES. THAT WOULD BE GREAT.

THANK YOU. WE'LL DO THAT. ALL RIGHT.

THANK YOU. OKAY.

THANK YOU. YOU'RE WELCOME.

THANK YOU FOR YOUR SUPPORT.

[ETHICS AND COMPLIANCE UPDATE]

OKAY, HERE WE HAVE THE ETHICS HOTLINE.

OPEN CASES, CURRENT OPEN CASES BY ASSIGNED DEPARTMENT.

THE NEXT SLIDE ARE THE SLIDES THAT HAVE BEEN OPENED EACH MONTH AND HOW MANY WERE NOT THOSE THAT WERE CLOSED, BUT JUST ALSO IN ADDITION CASES. THESE ARE THE NUMBER OF CASES THAT WERE CLOSED.

AND THIS IS OUR WORK PLAN.

THESE ARE THE AREAS OF FOCUS FOR OUR TEAM AND WE'RE INCREASING AWARENESS AND MANAGEMENT OF THE ETHICS HOTLINE.

SO EVEN THOUGH WE MAY ONLY BE WORKING 14% OF THE CASES, WE'RE MANAGING ALL THOSE CASES TO MAKE SURE THAT THE REPORTER IS DOES RECEIVE A RESPONSE TIMELY AND SOMEBODY DOES IS WORKING ON THEM ACTIVELY AND GETTING BACK TO US.

WE CONDUCT INVESTIGATIONS THOROUGHLY AND EFFICIENTLY, ENSURING APPROPRIATE COMMUNICATION THROUGHOUT.

WE'RE ASSIGNED THOSE THAT ARE FOR FINANCIAL IMPROPRIETY TYPICALLY, AND WE ALSO DO CONFLICTS OF INTEREST AND IN AND OUT OF COMPLIANCE WITH POLICIES.

THE THIRD BULLET IMPROVE WE'RE HOPING WE'RE WORKING TO IMPROVE OUR ROLLOUT AND COMPLIANCE WITH CIPA, WHICH IS THE CHILDREN'S INTERNET PROTECTION ACT, TO IMPROVE INTERNET SAFETY FOR STUDENTS. WE'RE WORKING WITH IT FOR THAT SAME POINT.

WE'RE WORKING WITH IT TO ROLL IT OUT AND IMPROVE FASHION THIS YEAR SO THAT IT'S HOPEFULLY ROLLED OUT WHILE STUDENTS RECEIVE THEIR LAPTOPS.

THEY HAVE TO THEY'RE GOING TO TAKE RECEIVE TRAINING BECAUSE WE'VE STILL WE'RE STILL CATCHING UP TO ENSURE 100% COMPLIANCE ON THAT.

WE OVERSEE THE E-RATE PROGRAM COMPLIANCE.

SCOTT'S TEAM AND TANYA PRIDGEON DO THE HEAVY LIFTING AND WE OVERSEE THAT, CONTINUE TO IDENTIFY, INVESTIGATE AND HELP PREVENT CONFLICTS OF INTEREST AND FINANCIAL IMPROPRIETIES AT HISD.

WE ENSURE VENDORS WITH DIRECT CONTACT WITH STUDENTS ARE CLEARED TO WORK AT HISD.

SO WE ARE THE MIDDLE MAN BETWEEN PURCHASING SERVICES.

THOSE THAT PROJECTS WHERE THERE ARE THE PROJECTS ARE IDENTIFIED TO HAVE CONTACT DIRECT CONTACT WITH STUDENTS AND THEN WORKING WITH THE VENDORS AND MAKING SURE THAT THEY GET THEIR FINGERPRINTS CHECKED.

AND WE HAVE A FINGERPRINTING DEPARTMENT, PART OF OFFICE OF TALENT THAT RELAYS THAT INFORMATION BACK TO US.

WE MAKE SURE THE VENDOR IS CLEARED AND WE COMMUNICATE THAT TO THEM AND WE AUDIT THE WE DO SOME RANDOM REVIEWS OUT AT SCHOOLS TO MAKE SURE THAT THAT'S HAPPENING.

AND THERE'S NOT ROGUE VENDORS OUT THERE THAT HAVEN'T BEEN CHECKED.

[01:05:04]

SO WE ARE EMBEDDED IN PROGRAMS. WE'RE TRYING TO GET EVEN CLOSER TO WHERE THE TRAINING IS HAPPENING WITH PRINCIPALS, FINANCIAL CLERKS, TEACHERS. SO WE'RE TRYING TO EMBED OUR TRAINING AND MAKE SURE EVERYTHING IS EVERYBODY'S EDUCATED ON WHAT THEY NEED TO KNOW.

THANK YOU. ANY QUESTIONS FOR ETHICS AND COMPLIANCE? OKAY. ALL RIGHT.

THANK YOU. AND COLLEAGUES, YOU SHOULD HAVE WE TALKED ABOUT THIS AT THE LAST AUDIT COMMITTEE MEETING IS OUR ANNUAL COMMITTEE REPORT THAT USUALLY WE DO AT THE END OF A CALENDAR YEAR, AND THEN THE BOARD ACCEPTS THAT REPORT.

AND IT'S JUST MOST OF IT'S LOOKING BACKWARDS.

THIS IS WHAT WE DID.

AND THEN THERE'S SOME LOOKING FORWARD OF LIKE RECOMMENDATIONS FOR THE COMING YEAR.

WE APPARENTLY HAVE NOT ACCEPTED THAT AS A BOARD YET, AND SO BOARD SERVICES HAS SENT IT TO US.

[INAUDIBLE] DO WE HAVE IT NOW? IT'S IN THE SHAREPOINT.

IF EVERYBODY WOULD JUST REVIEW IT, I'D SAY BY THE END OF NEXT WEEK, IF YOU HAVE ANYTHING, YOU'RE LIKE CORRECTIONS, ADDITIONS, WHATEVER.

SEND THEM TO ME AND.

OKAY.

TO MAKE SURE THAT WE GET THIS UPDATED AND IT GETS ON THE MAY AGENDA.

I THINK IT'S ESPECIALLY IN THIS TRANSITION, I THINK IT'S IMPORTANT IN ANY YEAR, BUT ESPECIALLY WITH THIS, BECAUSE THAT'S HOW WE CAN GO BACK AND KNOW WHAT WE ACTUALLY DID AS A COMMITTEE AND FUTURE BOARDS CAN KNOW AND HAVE ACCESS TO.

AND IF BOARD SERVICES, IF I KNOW THERE WERE A LOT OF THINGS WE TALKED ABOUT IN THAT MEETING, IF YOU COULD MAKE SURE THOSE ARE CAPTURED IN THAT DOCUMENT AS WELL, PLEASE. ON THAT LAST MEETING.

OKAY. NO, THAT'S FINE.

I JUST I'M WORRIED THERE'S A GAP.

OKAY. THANK YOU ALL.

WE'RE DONE, RIGHT? NOTHING ELSE. ALL RIGHT.

THANK YOU ALL. THIS MEETING IS ADJOURNED.

FIND THE SCRIPT AT WITH NO FURTHER BUSINESS TO DISCUSS, THIS MEETING OF THE AUDIT COMMITTEE IS NOW ADJOURNED AT 4:41 P.M.

. GOT THE LITTLE HAMMER. THEY ARE WORRIED ABOUT BEING ABLE TO

* This transcript was compiled from uncorrected Closed Captioning.