[00:00:01]
>> CLIFF BOYD MONICA LIRA BRAVO.
[1. Roll Call - Announcement of a Quorum]
CHARLETTETA CHARLETTA CHARLETTETA CHARLETTA DIANA FLORES.DOROTHY ZIMMERMANN ZIMMERMANN RITTER PHILIP J.
RITTER FILIP PHIL LIP PHILLIP PHILLIP PHILLIPE FILIP PHILLIPE PHILIP PHILLIPE PHILLIP PHILLIPE PHILIP PHILLIPE PHILIP PHILLIP.
JOE MAY FLORES DIANA FLORES COMPTON CHARLETTA ROGERS COMPTON CHARLETTA ROGERS COMPTON BRAVO MONICA LIRA BRAVO BUOY BUOY CLIFF BOYD RICHLAND COLLEGIATE HIGH SCHOOL.
[2. Certification of Notice posted for the meeting]
SO WE GO AROUND THE TABLE OR WE JUST SAY THAT WE GOT A FORUM.
>> YOU JUST SAY YOU GOT A FORUM.
LET'S DO A CERTIFICATION OF NOTICE POSTED.
>> MEETING WAS SUPPOSE, TEXAS GOVERNMENT 5514054.
I HAVE APOINTED TRUSTY WILLIAMS TO SERVE IN THE AUDIT COMMITTEE.
SHE'S OBVIOUSLY PRESENT >> VERY GOOD >> AND SO AT THIS POINT, POSTED CITIZENS DESIRING TO SPEAK WITH THE BOARD.
>> WOULD LIKE TO READ THE SCRIPT.
>> TEXAS OPEN MEETING ACT, I CALL THE ORDER, THE BOARD OF TRUSTEES OF DALLAS COLLEGE FOR DECEMBER 7TH, 2021.
MEMBERS OF THE PUBLIC, WHO HAVE FALLEN INSTRUCTIONS OF THE COLLEGE BOARD OF TRUSTEES WEBSITE, REGISTERED TO SPEAK BEFORE THE COMMENT PORTION WILL BE GIVEN FIVE MINUTES TO SPEAK.
COMMITTEE MEETING IS BEING BROADCAST OVER THE INTERNET AND AUDIO RECORDING AND TRANSCRIPT ARE BEING MADE, WILL BE AVAILABLE TO THE PUBLIC ON THE BOARD'S WEBSITE, AFTER THE MEETING AT A LATER DATE.
CHANCELERS ALREADY STATED AND ACCORDANCE TO THE LAW.
SO WE DO HAVE ANY CITIZENS DESIRING TO SPEAK, COMMITTEE PRESENTATION, INTERNAL AUDIT DEPARTMENT, YES QUARTERLY MEETING, QUARTERL ENDING, NOVEMBER 30TH OF 2021.
MS. COX WILL NOT BE PRESENTING TODAY.
>> OUR AUDITOR DID HAVE A FAMILY ISSUE.
WELCOME GOOD TO HAVE YOU WITH USND APPRECIATE YOU JUMPING IN HERE IN SHORT NOTICE.
I'M HUMBLY HONORED TO SERVES, DIRECTOR OF INTERNAL AUDIT,
[4.1. Internal Audit Department (IAD), Audit Committee Report - 1st Quarter ending November 30, 2021]
REPRESENTING.AND HEADQUARTERS, AN TONNETTE MALONE AND COLIN MITCHELL.
FULLER IS JOINING US REMOTELY.
IT'S A PLEASURE AND HONOR TO SERVE ALL OF YOU IN THE COMMUNITY, THE STUDENTS, EMPLOYEES.
WHAT I WILL DO IS WALK YOU THROUGH THE PRESENTATION.
BASICALLY THE SAME INFORMATION AND ALSO AS I GET TO VARIOUS AREAS IN THE PRESENTATION, THERE ARE DETAILED REPORTS THAT HAVE BEEN MADE AVAILABLE TO YOU FOR FURTHER REVIEW AND RESEARCH.
IF WE CAN ADVANCE TO THE NEXT SLIGHT.
TODAY, I WILL GIVE YOU ON WHEREVER YOU ARE IN TERMS OF OUR ENGAGEMENTS, HOW OUR PLAN HAS BEEN UPDATED ENHANCEMENTS TO THE SLIDE.
AS I MENTIONED, A STATUS REPORT, UNDERTOOK A RATHER LARGE PROCUREMENT OF THE AUDIT AREA, LOOKING AT CONTRACTS AND SPENDING, ANALYSIS, IN TIMES, SECURITY AND RECENT CHANGES, THAT HAVE BEEN MADE BASED ON THE DALLAS COLLEGE REORGANIZATION, MANAGEMENT, CURRENTLY HAS THE DRAFT REPORT.
WE ANTICIPATE, PROVIDING A FINAL REPORT WITH RESPONSE TO YOU IN JANUARY OF 2022.
ANOTHER AREA IS A REVIEW OF THE PROCESS AND SYSTEMS RELATED TO FIXED PROCESS.
AS YOU ARE AWARE, THE PANDEMIC IMPACTED THE ABILITY TO PERFORM.
PROCEDURES AND PROCESSES ARE BEING REDESIGNED AS WELL, AS TRAINING AND ROLLOUT OF AN EXISTING SYSTEM.
AGAIN, A DETAILED REPORT OF ACTIVITIES HAS BEEN MADE AVAILABLE TO YOU TO GIVE YOU EXACTLY WHAT WE DID IN THAT AREA.
THE FIXED ASSETS AREAS, DO WE HAVE A BAR CODE-TYPE SYSTEM OF ACCOUNTABILITY
[00:05:06]
FOR EQUIPMENT.>> WE DO, IT'S NOT AS THE RATING RFI SYSTEM.
THERE'S A COMBINATION OF SCANNERS AND IPADS THAT ARE USED AS THEY ARE ATTACHED TO THE EQUIPMENT.
THAT EQUIPMENT IS UPLOADED INTO THE SYSTEMS. AND PART OF THE PROCESS IS FINDING THE VIEWS AND OTHERS.
>> THE SYSTEM VALUED IN OVER, EQUIPMENT IS LOCATED ANYTIME?
>> IN RELATION TO THE QUESTION, YES, IT DOES.
WEIGHS IMPORTANT, THE PERSONNEL AS EQUIPMENT MOVES AS THEY SCAN THOSE KINDS TO REFLECT THE UPDATE.
>> AND KNOWING, IT'S KIND OF A FAIRLY ROUTINE PROCESS WHERE THE EMPLOYED PEOPLE GO BACK THROUGH OFFICES, BUILDINGS, CLASSROOMS, THOSE SORT OF THINGS, VERIFYING THE TAGS.
AS YOU KNOW, THESE DO GET MOVED AROUND OCCASIONALLY, AND WHILE MOST OF IT IS DONE ROUTINELY AND DOCUMENTED APPROPRIATELY, EVERY ONCE IN A WHILE, THERE'S GOT TO BE A LITTLE BIT OF FIGURING OUT WHERE SOMETHING IS RELOCATED.
>> AND MORE TO YOUR POINT, I SEE THE VALLEY HAS BEEN SELECTED AS THE FIRST TIME TO DO, BASED ON THE NEW PROCEDURES, AS TO BE APPROVED AND TEST THE PROCESS BEFORE IT'S RULED OUT COLLEGEWISE.
YOU'VE HAD THE SUCCESS SO FAR IN LIMITED TESTING.
I KNOW TECHNOLOGY MOVES AND MOVES.
ESPECIALLY IN THE COMPUTER SIDE AND EVERYTHING, THERE'S SYSTEMS OUT THERE, ONCE YOU CONNECT YOUR COMPUTER, IT TELLS YOU WHERE IT IS.
YOU DON'T HAVE TO WORRY WHERE IT IS.
IF YOU MOVE IT, IT DOESN'T MATTER.
I JUST DIDN'T KNOW, IF THAT'S COME ALONG MUCH FURTHER, KIND OF BEEN OUT
OF -- >> I DO THINK THEY USE, WHAT DO THEY CALL THE TAGS?
>> YOU HAVE TO BE WITHIN A SPECIFIC GEOGRAPHIC, 72.
IT DOESN'T -- WITH THE READERS.
>> AND THE READERS, YOU COULD ACTUALLY HAVE READERS IN THE ROOM.
IF YOU HAVE MULTIPLE EQUIPMENT, IT WILL SENSE WHERE IT IS.
THE OTHER THING, WITH THE IMPLEMENTATION OF WORKDAY, THIS PROCESS WILL BE MORE STREAMLINE AND ACCURATE.
MOVING ON, NEXT SLIDE, PLEASE.
TO THE AUTOMOTIVE PROGRAM, TO GIVE YOU A CLARIFICATION OF WHAT THE FOLLOW-UP IS, A FOLLOW-UP IS WHERE WE TAKE A REVIEW OF PREVIOUS AUDIT FINDINGS, TO GET A STATUS ON WHAT AUDIT HAS BEEN DONE.
THERE'S SOME REORGANIZATION IN TERMS OF THE AUTOMOTIVE PROGRAM.
WE'RE WORKING WITH THE CURRENT TEAM TO FORMULATE OUR APPROACH TO DO THE FOLLOW-UP.
WITH RESPECT TO WORKDAY, WE ARE PROVIDED ADDITIONAL ACTIVITY AND SUPPORT, AS THE COURT REQUESTED IN PARTICULAR.
WE WERE LOOKING AT SEPARATION OF DUTIES CONFIGURED AS GOING FORWARD.
AND WE REPORT IN THE DETAIL REPORT THAT WE PROVIDE TO YOU AS WELL.
AGAIN, AT THIS POINT IN TIME, I DON'T KNOW THERE'S ANY EXCEPTIONS NOTED, YOU WILL HEAR AN UPDATE THIS AFTERNOON FROM THE C.T.O.
ON THE WORKDAY IMPLEMENTATION SCHEDULE AND SO FORTH.
WE HAVE COMPLETED A FOLLOW-UP ON DAY TEACHING AND MANAGEMENT IMPLEMENTED ADDITIONAL CONTROLS TO STRENGTHEN THE PROCESS.
AND WE WILL PROVIDE AND DO A FOLLOW-UP IN THE NEXT QUARTER TO SEE IF THE CONTROLS ARE WORKING AS INTENDED.
AGAIN, A DETAILED REPORT HAS BEEN MADE AVAILABLE TO YOU, DETAILING OUR ACTIVITIES.
THAT WILL BE OUR STANDARD PRACTICE, OF PROVIDING THOSE ADDITIONAL REPORTS TOGETHER.
>> AND TO THE BOARD MEMBERS, WHAT THAT REALLY IS, ADMINISTRATIVES TEACHING IN THE DAYTIME HOURS IN LIEU OF DOING THEIR OTHER WORK.
WE AUDIT THAT ANNUALLY OR AT HISTORICALLY WE'VE MADE SOME ADMINISTRATIVE CHANGES TO THAT THAT ARE STILL PUT INTO PLACE.
THE POLICY HASN'T CHANGED BUT HOW WE UTILIZE THE FOLKS THIS THAT REGARD HAS CHANGED.
>> IF YOU GO TO THE NEXT SLIDE.
AT REQUEST OF MANAGEMENT, WE DID A REVIEW OF THE COVID INCENTIVE PAYMENT PROCESS.
IT WAS A LARGE AMOUNT OF CASH DISTRIBUTED.
[00:10:01]
I BELIEVE THE LAST TIME I LOOKED AT IT WAS SOMEWHERE AROUND $2.3 MILLION.WE FOUND THE CONTROLS THAT WERE IMPLEMENTED TO HANDLE THE CASH FLOW BEING RECEIVED FROM THE BANKS AND BEING DISTRIBUTED TO THE STUDENTS WAS SUFFICIENT, WELL CONTROLLED AND OPERATING AS INTENDED.
WE PROVIDED A REPORT TO THE FINANCIAL MANAGEMENTS DETAILING THEIR ACTIVITIES.
ANOTHER AREA THAT WAS IN OUR PLAN THAT WE ARE CURRENTLY ENGAGED IN WORKING AT IS THE CARES ACT FUNDING.
SIGNIFICANT FUNDS WILL BE DISTRIBUTED AS A RESULT OF THE CARES ACT.
THIS WAS A PROGRAM SELECTED BY EXTERNAL AUDITORS FOR REVIEW.
WE WILL BE REVIEWING THE PROCESSES OF THE COLLEGES, USING THE FUNDS AT THE PRESENT TIME.
ARE THERE ANY QUESTIONS AT THIS POINT? WITH THAT, PLEASE ADVANCE TO THE NEXT SLIDE.
OUR TEAM PROVIDED ASSISTANCE TO MCCONNELL AND JONES IN THE AREAS PRIMARILY OF STUDENT FINANCIAL AID.
DUE TO A GREAT COLAB RATIVE WORK OF AMANDA AND COREN, AND THERE WERE NO FINDINGS THAT RESULTED, BECAUSE OF THE WORK WE DID ON THEIR BEHALF.
AND THIS WORK IS VERY COMPLICATEDED, VERY DETAILED.
AND I'LL BE SPEAKING ON BEHALF OF LORI.
WE'RE PROUD OF THE TEAM, FOR PROVIDING CONSISTENTLY THE HIGH LEVEL OF SERVICE.
AT REQUEST OF MANAGEMENT AND OTHERS, WE REGULARLY PERFORM SPECIAL INVESTIGATIONS.
TWO WERE CONDUCTED IN THE FIRST QUARTER.
IT'S APPROPRIATE IT'S COMMUNICATED TO THE HUMAN RESOURCES AND LEGAL DEPARTMENTS OF APPROPRIATE ACTION.
>> WHAT ARE THE SPECIAL INVESTIGATIONS.
>> COULD I HAVE A SPECIAL COUNCIL.
>> ONE OF THOSE CONCERN, A REVIEW OF A PERSONNEL MATTER INVOLVING BUSINESS MATTERS, RELATING TO PERSONNEL.
ONE OF THOSE PERSONAL MATTERS, REGARDING PERSONNEL.
WE WILL DISCUSS IT IN CLOSE SESSION IF WE WANT TO DISCUSS IT FURTHER.
THE OTHER INVESTIGATION IF MEMORY SERVES, RELATED TO ONE OF THE PROGRAMS AND I AM DRAWING A BLANK.
PAUL, YOU COULD HELP ME >> I DON'T REMEMBER THE PROGRAM.
>> I CAN'T RECALL SPECIFICALLY WHAT IT WAS, IT WAS IN THE ISSUE WITH REQUEST TO ONE OF THE DEPARTMENTS WHO HAD A SPECIFIC REQUEST.
I WILL GET THAT TO YOU BEFORE THE NOON DAY.
>> WHEN WE HAVE THESE SPECIAL INVESTIGATIONS LIKE THAT, IS THERE ANY INTERACTION WITH THE POLICE DEPARTMENT AS WELL?
>> ONLY IF THERE'S POTENTIAL CRIMINAL LIABILITY.
THERE WEREN'T IN THIS THESE INSTANCES.
WE'VE HAD INSTANCES, WHERE THERE'S FOR EXAMPLE ALLEGATIONS OF FRAUD, FINANCIAL AID IN THE PAST.
THAT WAS NOT ONE OF THESE SITUATIONS.
WE WOULD INVOLVE LAW ENFORCEMENT IN THAT AS WELL AS THE ATTORNEY GENERAL'S OFFICE IF IT WARRANTED THAT.
WE CERTAINLY DO INVOLVE POLICE WHEN THERE'S POTENTIAL CRIMINAL ACTIVITY.
>> THAT WOULD BE THE CASE, IF WE NEEDED TO USE OUTSIDE PRIVATE INVESTIGATIONS?
>> WE HAVE DONE THAT, TOO, DEPENDING ON THE COMPLEXITY OF THE MATTER, WE HAVE ENGAGED OUTSIDE THE INVESTIGATIVE TEAMS AS WELL.
NOT THIS THESE INSTANCES, I CAN'T CALL AND APOLOGIZE FOR THAT.
IN THE FIRST MATTER, WE DID THAT INVESTIGATION IN THE HOUSE AND THE INVESTIGATION WAS DONE IN THE HOUSE.
>> A LOT OF TIMES THE ACCUSATIONS OF FRAUD WERE REALLY NOT FRAUD.
PEOPLE DON'T UNDERSTAND THE TERM OF THE WORD.
IF THERE'S A POSSIBILITY, WE INVOLVE THE APPROPRIATE LAW ENFORCEMENT OR OTHER FOLKS IN THE PROCESS.
>> IN THE HIGHER ARCY OF EDUCATION WITHIN THE STATE, DOES THE STATE AN INVESTIGATIVE UNIT?
THEY ACTUALLY HAVE, THE OFFICE STATE AUDITOR.
IT WOULD BE THE OFFICE AT THE MOMENT.
THEY HAVE THE AUTHORITY TO INVESTIGATE IF THERE'S A MATTER THAT COMES INTO THEIR ATTENTION THEY HAVE TO INVESTIGATE.
IN THE PAST THEY HAVE MADE US AWARE, IN MY TIME HERE, DALLAS COLLEGE, THERE'S
[00:15:02]
INSTANCES WHERE THE STATE AUDITOR'S OFFICE HAS BECOME AWARE OF SOMETHING THEY'VE DIRECTED US TO INVESTIGATE AND WE'VE DONE SO AND WE CLOSED THE INVESTIGATION TO THEM.>> AND LIKE THE AIR FORCE, O.S.I.
IS THE COUNTERPART OF THE AUDITOR.
THE AUDITOR DON'T GET INTO THE INVESTIGATION HANDED OFF.
I DIDN'T KNOW THE EDUCATION HAS THE SAME.
AND I'M SPEAKING COMPLETELY OUT OF SCHOOL, IT MAY BE IN THE UNIVERSITY OF TEXAS, TEXAS A&M.
THEY MAY HAVE SOME RELATIONSHIP WITH SAID AUDITOR.
AND THE PARTICULARLY THEY LEAVE THE INVESTIGATIVE MATTERS TO US.
WE HAVE THE ABILITY TO FALL IF NEED BE.
>> MOVING ON TO THE FRAUD HOT LINE.
THAT IS A VEHICLE THAT'S AVAILABLE ON THE DALLAS COLLEGE WEBSITE.
YOU COULD -- ANY INDIVIDUAL COULD REPORT FRAUD, WASTE OR ABUSE.
OFTEN TIMES, WE CAN GET A COMPLAINT.
WE CAN GET AN ALLEGATION OF FINANCIAL AID FRAUD, IDENTITY THEFT OR SO FORTH.
AND AS ROB MENTIONED, INVOLVE ANY OUTSIDE AUTHORITIES THAT WERE APPROPRIATE.
FOR THE TWO THAT CAME IN FOR THE PAST QUARTER, NONE OF THOSE WERE FRAUD, WASTE OR ABUSE AS DEFINED.
>> HERE'S A QUICK SUMMARY OF THE PLAN.
WE'RE COMING INTO THE SECOND QUARTER.
OUR EMPHASIS OF FOCUS WILL BE CLEARLY ON COMPLIANCE, DUAL CREDIT, FOLLOW-UP AUDIT AND A FOLLOW-UP WITH THE IT GENERAL CONTROLS AREA.
THAT WILL PRIMARILY BE FOCUSED ON AN AUDIT THAT WAS DONE IN 2018-2019.
AS YOU SEE FURTHER DOWN, WE WILL BEGIN IMPLEMENTING WHAT WE CALL CONTINUOUS AUDITING.
CONTINUOUS AUDITING IS WHAT WE DEFINE AS SECTIONS OF AN AREA WE WILL COVER IN A PARTICULAR QUARTER.
AS WE PREVIOUSLY DISCUSSED, FIXED ASSETS AS WELL AS PROCUREMENT.
WE HAVE ONGOING ACTIVITIES AND FRAUD, INVESTIGATIONS AND KEY EFFORTS AND WORKDAY.
>> I WAS WONDERING, IF -- WE WILL EXPLAIN THE BUSINESS CONTINUITY PLANS.
>> AND THIS IS CONTINUITY PLAN, TO LOOK AT THE COLLEGE AS STRUCTURED IN TERMS OF RESOURCES, BUSINESS CONTINUITY, WHAT IT HAS, WHAT IS PUT IN PLACE.
WHAT MEASURES ARE BEING TAKEN TO TEST THE PLAN.
THIS IS NOT JUST IT DISASTER RECOVERY.
THIS IS CONTINUITY, AS FAR AS PANDEMIC WILL OCCUR, ALL THE COLLEGE, WILL SHIFT FROM, ON-LINE CLASSES, FROM INPERSON CLASSES TO ON-LINE CLASSES.
SAY, THIS BUILDING WILL NOT BE AVAILABLE, WHAT WOULD THE COLLEGE DO TO CONTINUE OPERATIONS?
>> NORMALLY, WE THOUGHT ABOUT THAT A LOT IN TERMS OF AN I.T.
FAILURE SYSTEM THAT'S OUT THERE.
BUT OBVIOUSLY, WITH THE PANDEMIC, WE'VE EXPANDED BEYOND THAT, RISK MANAGEMENT AND OTHER AREAS TO INSURE WE CAN HANDLE GREATER DIVERSITY OF BOTH NATIONAL AND OTHER TYPES OF DISASTERS.
>> AND I WANT TO ADD, IN CONTENT REGARDING TO YOUR QUESTION, THE BASIS OFFICE IS RESPONSIBLE FOR THE OVERSIGHT OF THE BUSINESS OPERATION HERE IN DALLAS COLLEGE.
THEY ARE DOING A DEEP ASSESSMENT IN THE BUSINESS READINESS.
WHAT PAUL IS SPEAKING TO, IS CERTAINLY APART OF THAT.
IT'S EVERYTHING FROM WHAT WILL WE BE DOING IN THE CYBERATTACK.
>> WE CONSOLIDATE THAT, TO CRITICAL RESPONSE AND HOW WE DO WITH THE EMERGENCY SITUATIONS.
>> I'M NOT QUITE FOLLOWING WHY THIS IS REALLY MOVED A SPECIAL PROJECT? IS IT THE FIRST TIME?
>> IT'S THE FIRST TIME AND IT WAS A REQUEST OF MANAGEMENT, AS PART OF THE RISK ASSESSMENT.
>> THE RESTRUCTURING THAT WE DID, WE CREATED A NEW POSITION AS A RESULT OF THE PANDEMIC, ADDED SOME ADDITIONAL RESPONSIBILITY IN THE SPACE AND THEN DID A RESTRUCTURING AS WE TRANSITION TO DALLAS COLLEGE, REALLY EXPANDING THE SCOPE OF THAT, SHARING, OVERALL OPERATION WITH -- TO REALLY GO MORE BROADLY.
[00:20:05]
WE GET INTO, INCLUDED TO ISSUES REGARDING TO HEALTH.WE'VE INCLUDED ISSUES WITH VACCINE, HOW WE HANDLE COVID, HOW WE HANDLE OTHER AREAS THAT ARE OUT THERE WITHIN THE RESPONSE.
SO THIS IS RELATIVELY NEW IN TERPS OF THE STRUCTURE FOR US.
WE'VE HAD THE -- I GUESS THE TYPE OF RISK MANAGEMENT PROCESS THAT HAVE BEEN PRETTY TYPICAL.
WHAT WE HAVE NOW IS MUCH MORROW BUST.
THIS IS ABOUT 18 MONTHS INTO THAT, IN TERMS OF OUR OPERATIONS.
>> AND IT IS MUCH MORE HOLISTIC APPROACH.
I THINK THE PANDEMIC HAS POINTED TO HAVE A BROADER VIEW, ON WHAT MANAGEMENT WAS BEING LOOING, WHICH IS FINE, BUT IT WAS NOT BROUGHT ON THE TENDANCEIES WE WOULD FACE.
AND IT HAD TO DO WITH THE REQUEST FROM THE TURNER HIGH SCHOOL AT RICHLAND CAMPUS TO ASK WHETHER OR NOT THEIR CLASSES WILL BE IN COMPLIANCE TO THE STATUTE ENACTED WITH THE LEGISLATURE, LAST TERM, LAST SESSION LEGISLATURE.
WE HAD THEM ANALYZE ALL THE COURSES AND TO SEE IF IT WAS IN CONTINUITY.
>> WILL THIS BE A CONTINUIAL PROCESS?
>> DR. DAVE'S OFFICE WILL BE UPDATED AND REVIEWED.
THERE'S STATUTES REQUIRING US TO DO THAT IT'S A DEPARTMENTAL, INVOLVED RISK MANAGEMENT AND INVOLVE OUR I.T.
FOLKS AND THE ACADEMIC AS WELL.
>> YEAH, WELL YOU HAVE TO PREPARE FOR EVERY POSSIBILITY.
AND IT WILL BE DONE ON AN ANNUAL BASIS.
>> SO THE SPECIAL PROJECT WOULD LEND ITSELF WELL, TO PUTTING AN END TO A CONTINUOUS AUDITING CYCLE, CONTINUED AUDIT.
>> SAME SESSION PLANNING, WHAT DOES THAT MEAN? WHY ARE WE DOING IT?
>> AGAIN, THAT WOULD BE IN THE RISK ASSESSMENT IN TERMS OF WHAT MANAGEMENT AND SERVICE.
WE WILL TAKE A LOOK IN TERMS OF HOW THE COLLEGES LOOK AT, GIVEN THE MAJOR RESTRUCTURING, WHAT'S PUT IN PLACE, TO KEEP THE STRUCTURE OPERATING EFFECTIVELY AND EFFICIENTLY.
>> YOU'RE TALKING ABOUT WHAT? YOU'RE TALKING ABOUT THE INDIVIDUALS?
>> THE INDIVIDUALS, DEPARTMENTS.
>> I THINK THAT IN ONE OF THE SURVEYS, ONE OF THE SURVEY RESPONSES WE WOULD RECEIVE.
IT WOULD BE, INTERNAL AUDIT IN H.R.
DOES IT MEAN THE NEEDS OR ENTITY? WHAT ECHL PROFIT S WOULD BE MADE.
THEY ARE REPORTING, THEY HOPE THEY WOULD GROWIT.
>> BOTH OF THE AREAS YOU'RE TALKING ABOUT, ARE GOING ALONG IN THE LINES OF HOW WE ARE MOVING FROM TRADITIONAL COMPLIANCE AUDIT IN TERMS OF PERFORMANCE AND EFFICIENCY WHERE WE CAN MAKE RECOMMENDATIONS.
>> DOES IT MEAN, WE'RE LOOKING AT WHATEVER MAJOR DEPARTMENT OF DALLAS COLLEGE OR PROGRAM OF DALLAS COLLEGE.
IS THERE SOMETHING TO STEP IN THE LEADERSHIP ROLE?
>> THAT COULD BE ONE ASPECT, FOR EXAMPLE, IN THE AREA OF STUDENT SUCCESS THAT'S ORGANIZED FOR TWO OR THREE DIFFERENT AREAS.
DO THEY HAVE THE NECESSARY RESOURCES, TO SUSTAIN THAT FOR OUR STUDENTS?
>> SO THEN, THE OTHER QUESTION IS, ACCOUNTABLITILE BOARD SAID THEY WILL BUILD AN ACCOUNTABILITY PROCESS.
IF THERE WAS A PROCESS, THEY WERE NOT REALLY FOLLOWING.
IN AREAS OF PERSONNEL OR HOW SOMETHING WAS ACCOMPLISHED OR NOT, IS MAYBE, THAT'S AN AREA THAT NEEDS TO BE LOOKED AT.
OR ARE WE FOLLOWING ACCOUNTABILITY PROCESSES OR POLICIES.
>> I WOULD REFER TO THE DOCTOR?
>> THAT'S SOMETHING IN THE AUDITING PROCESS.
I FEEL THAT'S LACK IN TERMS OF MANAGEMENT RESPONSE, TO DOING WHAT WAS SOME OF THE ISSUES THAT WERE OUT THERE.
>> THAT WILL BE A REGULAR PART OF THE AUDIT.
>>ND AN I DON'T THINK THERE'S ANY ISSUES, THAT REQUIRES A RESPONSE.
THAT WAS A GAP, WHERE THINGS NEED TO BE, WHAT WE HAVE FINDINGS, THAT WERE WRITTEN UP.
[00:25:01]
BUT THEN WE DIDN'T GET BACK ON THE REMEDY FOR THAT.>> AN AUDIT WILL LOOK AT THE ACCOUNTABILITY FOLLOW-UP ON THAT.
>> YEAH, AND THAT'S WHAT YOU SEE ON HERE.
AND IT WILL ALSO BE HANDLED IN THE INITIAL AUDIT PROCESS TO SEE WHAT COULD BE RESOLVED RIGHT AWAY.
>> I WAS GOING TO SAY, WHEN WE HAD THE OTHER MEETINGS, WITH THE ROLE OF THE IN TRNAL AUDITOR AND THE DIVISION OF THE NEW DIRECTO AND ALL, MOST PEOPLE DON'T REALLY UNDERSTAND THE VALUE THAT COULD BE OBTAINED FROM AN INTERNAL AUDIT.
IT'S NOT SUBTRACTING AND CHECKING FOR THE VALUE AND ALL OF THAT.
THE REAL VALUE IS WHAT THEY ARE STARTING TO DO.
THEY ARE BASICALLY IN THE EYES AND EARS INTO THE OPERATION OF THE BUSINESS.
AND WE, AS BOARD MEMBERS, NEED TO VERY CLEARLY WHAT WE HAVE ISSUES AND CONCERNS.
THIS IS THE PROPER TOOL TO VISIT WITH, AUDIT ABOUT, HAVING THAT EVALUATION, WHETHER IT'S ACCOUNTABILITY OR ANYTHING ELSE THAT'S GOING ON.
IT'S REALLY A MANAGEMENT AUDIT.
AND IT'S THE MOST UNDER AGED TOOL THAT MOST BOARDS USE.
I HOPE WE CAN USE IT IN THE FUTURE, FOR ONE, USING IT.
AND SOMETIMES, TO TELL YOU, AND TO ASK A CHANCELLOR AND TELL YOU WHAT HE FEELS TO BE THE ANSWER, YOU BETTER OUGHT TO HAVE IT REVIEWED AND LOOKED AT AND GO DOWN THERE.
MY QUESTION GOES BACK TO WHERE YOU WERE IN FIXED ASSET OR BUSINESS CONTINUITY.
ONE, IS THERE ANY INSURANCE POLICY.
AND I NEVER GOT INTO THE HOW MUCH SELF INSURANCE WE HAVE.
BUT IN A NORMAL BUSINESS, WE HAVE INSURANCE POLICY, THAT COVERS INSURANCE CONTINUITY.
DO WE HAVE ANY INSURANCE POLICIES THAT STAND UP FOR THAT?
>> WE DO I WOULD LIKE TO GO INTO THE COVERAGES WE CARRY, THINGS THAT I DON'T WANT TO TALK ABOUT IN AN OPEN MEETING MUCH WE HAVE A ROBUST SET OF COVERAGES, THAT APPLY.
>> WE HAVE DEALT THROUGH A FEW OF THE IRSHIESH US, AS WE HAD TO DEAL WITH SOME THINGS THERE.
YOU KNOW, MAYBE, WHAT WE CAN DO IS, GIVE DR. DAVIS AND DO KIND OF A BROAD AREA HERE AND INCLUDE SOME OF THE AREAS LIKE MITIGATION OF ISSUES, WHERE WE
UTILIZE, INSURANCE AND DIFFERENT SITUATIONS FOR THAT >> I THINK THAT WOULD
BE HELPFUL NOT ONLY FOR NEWER BOARD MEMBERS, BUT THE ENTIRE BOARD >> OBVIOUSLY, WE DEAL WITH NORMAL DAMAGE AND WHAT OCCUR.
AND FRANKLY, IT'S MORE INVOLVED THAN THAT.
>> CONSTANTLY HEAR, AT THE REQUEST OF MANAGEMENT.
THE MANAGEMENT THIS AND MANAGEMENT THAT.
[00:30:03]
THERE'S SO MANY -- SPACE OF ISSUES AND HOW -- WHEN YOU SAY MANAGEMENT, WHATCONSTANTLY, AND WHO ARE YOU REFERRING TO >> TYPICALLY, THAT WOULD BE SENIOR LEADERSHIP.
>> THEY DO A SURVEY OF THE TOP LEADERSHIP, IT WILL ALMOST BE IN RESPONSE TO THE SURVEY ITEMS THAT COME OUT EACH YEAR, JUST LIKE THE BOARD IS SURVEYED AND ENGAGED YOU PROBABLY ARE GROUPING THE BOARD INTO THAT A LITTLE BIT, AS WE,
GET THERE >> THERE'S ALMOST NONE OF THESE.
THERE'S NOT AN ITEM ON HERE, THAT I REQUESTED SPECIFICALLY AS SUCH >> THAT'S WHAT I'M GETTING AT AND THAT'S WHAT I MEAN.
YOU SAID YOU -- >> YOU SAID MANAGEMENT.
>> YOU DON'T KNOW IF THAT'S MANAGEMENT AT THE COLLEGE CAMPUS OR THE MID LEVEL OUR IT CAME FROM THE MERE OFFICE.
I RESPONDED TO, FOR INSTANCE, THE SENIOR LEADER, AND IT WAS VERY ROBUST.
THE THOUGHT PROCESS, BEHIND THAT, RISK, PREPARATION WENT ON, IS TO GET INPUT FROM AS MANY AS YOU CAN ABOUT THE AREA POTENTIAL RISK.
THAT'S WHAT RESULTED IN MANAGEMENT >> AS I RECALL, ASKED TO RANK THE RELATIVE RISK, WHICH ARE THE GREATER RISK.
IDEA OF THE AUDIT, FOCUS ON HIGH RISK AREAS.
AND THERE'S SOME PROCESS APPLIED TO.
ANY OF THE AREAS, WE'RE CONSTANTLY LOOKING AT WHAT'S THE RISK CURRENTLY IN THE ENVIRONMENT.
THAT'S WHY WE -- RISK FACE AUDITING, AGS IN TRADITIONAL, FORB PURCHASING EVERY TWO YEARS.
WE'RE STRICTLY FOCUSED ON RISK.
IN TERMS OF THE PROVIDING THE BREAK OURT, BREAKOUTS ON THE RIGS BEING SURVEY.
WE HAVE THE SENIOR LEADERSHIP AND HAVE IT AVAILABLE FOR YOU.
>> AND YOU MADE A REFERENCE EARLIER, I THINK IT WAS -- >> BASED ON THE STRUCTURE THAT YOU HAVE.
WHEN IT WAS THE PRESIDENT'S AND THAT WERE IN CHARGE OF EVERYTHING, THAT WAS ON IT -- I AUTOMATICALLY KNEW, THE PEOPLE INVOLVED.
NOW WHEN YOU SAY MANAGEMENT, I DON'T KNOW IF THAT'S, WHO IS INVOLVED.
>> YOU'RE TALKING SCHOOL ZONES.
YOU'RE TALKING -- AND THIS IS REALIZED AND COMPLICATING WITH THAT, YOU HAVE THREE AUTOMOTIVE PROGRAMS, THAT ARE PHYSICALLY HOUSED IN THREE
DIFFERENT LOCATIONS, BUT UNDER ONE INSTRUCTOR >> AND WE'LL BE MORE CLEAR IN TERMS OF THE VEN KNACK LAR OF THE WORDS.
>> MOVING ON TO THE NEXT SLIDE.
SINCE MS. COX CAME ON BOARD, BACK IN OCTOBER, YEAR AGO, AS YOU COULD SEE, SIGNIFICANT PROGRESS IN TERMS OF HER VISION, HAS BEEN COMPLETED.
AND ADDRESSING THE KEY ITEMS FOR THE COLLEGE.
THERE ARE FEW REMAINING ITEMS, FOR THE PROCESS AND THAT INCLUDES AN INTERNAL MANUAL, LINES TO THE INTERNAL STANDARDS.
[00:35:05]
AND THE CUSTOMERS WE SERVE.WE DID IDENTIFY, AUTOMATION IN OUR SOFTWARE TOOL.
AND GETTING THE TOOL READY FOR IMPLEMENTATION.
>> QUESTION >> THE BOARD RECEIVED A RISK ASSESSMENT SURVEY.
IN THE PAST, YOU COULD PLEASE REMIND US OF THAT?
HAVE WE TAKEN A SURVEY RECENTLY >> MAYBE THE FIRST OF SEPTEMBER, I CAN'T REMEMBER HOW IT WORKED OUT.
THE SURVEY SHOULD HAVE COME IN THE EARLY JUNE, JULY TIME, IS THAT RIGHT.
>> IT'S AN ANNUAL SURVEY IN TERMS OF THE RISK.
>> AND GOING TO THE NEXT SLIDE >> WE HAVE SOME ADDITIONAL ENHANCEMENTS, THAT I WANTED TO POINT OUT.
WE PARTICIPATED, DALLAS COLLEGES INTERNET, WHAT'S KNOWN AS THE SHERIFF.
AND AS WELL AS, WE MADE AVAILABLE.
TO COME UP WITH AN ENGAGEMENT PACKAGE, SO WE CAN INTRODUCE OURSELVES TO NEW CUSTOMERS THAT WE SERVE WITHIN THE COLLEGE.
WE'RE LOOKING AT DEVELOPING AND TRAINING EXISTING VEHICLES, FOR TARGETING THAT, TO BE THE THIRD QUARTER OF THE YEAR.
AGAIN, IT WAS AN HONOR TO REPRESENT, THE INTERNAL AUDIT DEPARTMENT, TODAY, I WOULD BE HAPPY TO TAKE ANY ADDITIONAL QUESTIONS OR ANY ADDITIONAL FEEDBACK YOU HAVE.
FEEL FREE TO REACH OUT TO AUDIT AND LORI COX, ANYTIME, ANY ADDITIONAL DETAILS OR CLARIFYING INFORMATION.
ESPECIALLY, AS THEY POINTED OUT, WE ARE HERE AS A SERVICE TO YOU .
>> TWO YEARS AGO, EXTERNAL, THAT AROSE TO PAYMENTS WITH TUITION.
>> THEY REQUIRED ON OUR WORK TO COME UP WITH THE FINDINGS.
I CANNOT SPEAK, AND IN TERPS IT'S AN ONGOING ISSUE.
>> YOU DO THE WORK BUT THEY REPORT.
>> WE'RE LIKE A SUBCONTRACTOR TO THEM.
>> IT'S GOOD SEEING EVERYBODY, AGAIN.
>> THE NEXT IS THE ANNUAL COMPREHENSIVE FINANCIAL REPORT.
>> I WOULD LIKE TO INTRODUCE MARLEN WILLIAMS, WITH MCCONNELL JONES, WHO WILL GIVE THE REPORT, THAT IS RECENTLY COMPLETED.
>> MESSAGE, ANNUAL COMPREHENSIVE FINANCIAL REPORT >> NEW STANDARD TO CHANGE THE NAME, SO.
I NORMALLY STAND, BUT I WILL STAND.
[4.2. Annual Comprehensive Financial Report for the College and Richland Collegiate High School and Single Audit Report of Federal and State Awards together with Reports of Independent Auditors, for the Fiscal Years Ended August 31, 2021 and 2020]
>> WHAT'S THE DIFFERENCE BETWEEN THIS AND WHAT WE HAVE.
>> IT IS THE EXACT SAME THING.
ONE IS ON PAPER >> YOU HAVE 10 MINUTES, GO FOR IT.
ALL THE CUTS AND JOKES, WORK OUT >> ON BEHALF, I APPRECIATE THE OPPORTUNITY FOR YOU GUYS TODAY.
[00:40:04]
THE, THE RESULTS, FINANCIAL AUDIT FOR THE YEAR, ENDING IN 2021.FIRST PAGE, OUTLINES THE CORE VALUES, INCLUSION, TRANSPARENCY, ACCOUNTABILITY.
I THINK BY COMPLETING THE AUDIT ON TIME, SHOWS THE ACCOUNTABILITY TO US.
WE'RE DILIGENT WITH YOUR STAFF DURING THIS YEAR.
>> ARE YOU GOING TO BE ADVANCING THE SLIDES OR SOMEBODY ELSE.
THANK YOU >> AND WORKING WITH OUR FROM YEAR TO YEAR, TODAY, I THINK IT WENT REALLY WELL, AS AN AUDIT AS A WHOLE.
SO HIGHLIGHTS FROM THE CFR, AND WE'RE AT 1.2 MILLION.
IT'S AN INCREASE ABOUT 97 MILLION, YEAR OVER YEAR.
AND INCLUDES A LIABILITY, WHICH IS A DEGREE CREASE, AND MANUALS, AND 23 MILLION PAYMENTS YEAR PER YEAR.
97 MILLION INCREASE, FOR OPERATING REVENUES, INCREASED BY 12 MILLION TO 120 MILLION THE YEAR BEFORE.
OPERATING EXPENSES, ALMOST IN STAT, IN INCREASE FOR THE OPERATING REVENUES.
AND NONOPERATING REVENUES, ABOUT 43 MILLION.
COMING BACK ON LINE AND EVERYTHING.
IN COMPARING THE TWO PERIODS, IT'S DIFFICULT OVERALL >> AND INCLUDES
CARES ACT >> LOT OF FUNDS THAT ARE NOT TYPICAL.
AGAIN, IT ALLOWED THE SCHOOL TO HAVE A VERY GOOD FINANCIAL STANDING >> ON THE LIE ABILITIES, THEY PAY OUT -- WHAT CONSTITUTES, 3 MILLION.
>> THE MAJORITY, DECREASE LIABILITY, PRIMARILY.
>> 23 MILLION WAS RELATED TO BOND PAY OUT.
YOU HAVE TOTAL LIE ABILITY, AND 124 MILLION, THAT ARE BOND RELATED.
THE BONDS INCREASE BY 23 MILLION.
30 MILLION, ALMOST 24 MILLION.
>> AND OPERATING, INCREASE BY.
>> THERE WERE A PROBABLY A WHOLE LOT OF REASONS FOR THIS.
>> THE FEDERAL DOLLARS, GENERALLY GO BELOW THE LINE.
YOUR OPERATING REVENUES, IS PRIMARILY TUITION.
IF YOU'RE LOOKING AT 20-21, VERSUS 2020.
IT'S KIND OF A HARD COMPARESONS, IS THERE ANY CHANGES, WHAT THE TUITION COSTS WERE, IF I TRY TO REMEMBER THE FINANCIALS AS A WHOLE.
>> TRYING TO EXACTLY SIMULATE.
I THINK THAT'S PRIMARILY THE REVENUE INCREASE >> TAX REVENUE AS WELL.
>>ND A TAXES, INCREASE, WE HAVE SOME MONEY, AND ALSO, STILL PAYING FOR A LOT.
>> AND I'M SORRY WE SELF PAY, WE DID SELF FINANCING FOR THE PROJECTS,
[00:45:03]
ESPECIALLY LIKE THE IT CLOSET WE HAVE ADDITIONAL MONEY WE RECEIVED FROM CARES FUNDING AND SOME THAT WE WOULD BE DOING.>> WE TALK ABOUT WHAT'S THERE.
OPERATING REVENUES, IS 122 MILLION.
>> THIS IS THE INTERESTING THING ABOUT SCHOOL FINANCES AND IN COLLEGES.
>> OPERATING REVENUES, WHICH IS BASICALLY TUITION MAJORITY OF THE FUNDING, THAT'S BELOW THE LINE, WHICH IS THE PROPERTY PASSES AND SOME OF THE GRANTS, COMING BELOW THE LINE.
SO THOSE ITEMS ARE REALLY WHAT'S MAKING THE OVERALL NET CHANGE IN THE NET POSITION A POSITIVE CHANGE.
>> WHAT'S THE VALUE FOR PUTTING SOMETHING LIKE THAT FOR -- >> AND THAT'S RIDICULOUS.
>> I DID, THE PRESENTATION ON HOW THEY PRESENT FINANCIALS >> I THINK THERE'S NOT AB ARGUMENT, YOU COULD STATE, BECAUSE OF THE PROPERTY TAXES, BECAUSE
THEY DRIVE THE OPERATIONS, THAT THEY COULDN'T CONSIDER PART OF THE OPERATIONS >> IS THAT THE NONE OPERATING REVENUES OR PROPERTY TAXES?
>> ANY BOARD MEMBER THAT WOULD LIKE TO GO THROUGH THIS IN DETAIL FROM AN OPERATING STANDPOINT AND HOW YOU WOULD LOOK AT IT INTERNALLY.
I HAD PROBLEMS WITH THIS, YEARS AGO, WHEN THEY WERE BROKING IT OUT.
APPROPRIATIONS AND TAXES ARE WHAT WE CALL NONOPERATING.
>> MY WHOLE POINT, WHO DO WE ADDRESS AT THE STATE LEVEL OR WHOEVER MAKES UP THE RULES, THAT THEY ARE MISLEADING TO THE GENERAL PUBLIC WHO PICKED IT UP AND
LOOKED AT IT >> I THINK IT'S SO IMPORTANT.
I SUGGEST YOU LOOK AT THE MANAGEMENT DISCUSSION AND ANALYSIS.
ALLOWS US TO RESTATE THOSE THINGS IN GRAFTS AND IN NUMBERS THAT MAKES SENSE AT THE TIME READER.
AND WE SPENT A LOT OF TIME, MAKING SURE THAT INFORMATION IS VERY CLAIM TO WHAT YOU'RE TALKING ABOUT.
>> LUCKILY, NOW, HAVE SOME DIFFERENT WAYS IN SEWING SOME OF THESE.
RETIREES, AND INDIVIDUALS, INSURANCE, WHETHER OR NOT THEY HAVE A WILL OR NOT.
WE END UP WITH A LARGE LIABILITY LINE, THAT IS NOT, AND UNFORESEEABLE CIRCUMSTANCES THAT ARE THERE AND HONESTLY HAS NO IMPACT IN THE DAY TODAY OPERATIONS.
>> MY ONLY QUESTION, WHO DO WE COMPLAIN TO.
>> I THINK IF THERE IS A PERSON TO COMPLAIN TO.
>> IT'S A RECORDING DOCUMENT, THAT BECOMES THE OFFICIAL REPORT.
THAT'S WHY WE'RE DOING IT TODAY.
WE'LL BRING THE OPERATING BUDGET BACK IN A COUPLE OF MONTHS, WHICH IS A DAY-TO-DAY, MORE REALISTIC, FRANKLY, YET IT DOESN'T RAISE THE KIND OF QUESTIONS, YOU WILL GET WITH THE NUMBERS.
>> WHOLE POINT, THERE HAS TO BE SOME PRICE.
THE PUBLIC HAS ACCESS TO THIS >> PUBLIC LOOKS AT THIS AND THEY THINK, WE'RE A BUNCH OF IDIOTS.
>> REALLY LOOK AT THE BOTTOM LINE IT'S REALLY THE BIGGEST PIECE FOR THEM.
>> EVEN THE DEPOSITION, INCLUDES, DOLLARS THAT ARE COMPLETELY PASS THROUGH THAT WE NEVER SEE.
SO THAT'S NOT EVEN A REAL NUMBER FROM A BUDGET PLANNING OPERATING POINT OF VIEW.
I THINK THE POINT, INCREASE OR DECREASE, MATTERS MORE THAN THE SOUTH THERE.
WE END UP, HOW MANY OTHER MILLION IN FEDERAL AID THAT COMES THROUGH TO STUDENTS.
[00:50:15]
IT'S THEIR MONEY, NOT OUR MONEY, BUT IT SHOWS UP IN THEIR BOOKS >> WOULD IT BE OKAY TO PUT A QUICK NOTE.
OPERATING EXPENSES ARE MADE BY OPERATING AND NOT OPERATING REVENUES >> I THINK IT'S HIGHLY EXPLAINED IN THE PRESENTATION ITSELF.
>> AGAIN, SPEAKING TO THE PUBLIC, THEY WILL SEE THE ONE SLIDE.
>> I THINK THE SLIDE IS PUBLICIZED.
WE CAN PROBABLY ADD SOMETHING, TO KIND OF HELP THE CLARITY >> PEOPLE WILL SIDE THE OPERATING BUDGET, AS UNDER $150 MILLION.
>> YOU COULD TAKE ABOUT POSSIBLY.
>> INITIAL SHOCK AND OPERATING REVENUES.
SOME OF THE OPERATING REVENUES IS SUBSIDIZED BY THE OPERATING REVENUES.
TECHNICALLY, THE SCHOOL IS SUBSIDIZED BY PUBLIC GRANTS >> ONE OF THE RESOURCES IS TUITION.
WE'VE HAD A DECREASE IN ENROLLMENT.
WHAT IMPACT, HAS THE REVENUE HAD ON OUR OLD FINANCIAL PICTURE.
>> AND IT'S RELATIVELY SMALL, IN RELATION, BECAUSE THE SCHOOL IS, AGAIN, GOING BACK TO THE ORIGINAL POINT.
AND IT'S -- TUITION, TUITION COVERS THE PORTION OF THE COST.
IT'S A RELATIVELY SMALL PERCENTAGE.
THE PERCENTAGE OF THAT IS HIGHLIGHTED.
TUITION REVENUE WOULD WENT UP $3 MILLION COMPARED YEAR PER YEAR.
EVEN THOUGH WE WENT DOWN IT'S A MIXTURE OF THAT.
YOU CAN'T LOOK, AND HAS A DIRECT IMPACT TO TUITION REVENUE.
BECAUSE WE PROVIDE WAIVERS AND OTHER THINGS, THAT COMPLICATE THE MATTERS OF
>> WAVERS AND EARLY COLLEGE HIGH SCHOOL TUITION WAIVERS.
>> AND YOU CAN'T DRAW THIS YEAR, EVEN CLOSE TO A PURE RELATIONSHIP WITH, WHEN YOU'RE LOOKING AT HEAD COUNT EP ROLLMENT, BASICALLY FOR CONSOLIDATION.
I THINK WHAT WOULD HAPPEN, STUDENTS GET COUNTED THREE OR FOUR TIMES.
UNDER THE OLD 7 COLLEGE MODEL, THEY WOULD SHOW UP IN STATE REPORTS, 4-5 TIMES, AND SOME CASES, DUPLICATED, NOW THEY WILL ONLY SHOW UP ONCE.
THAT DOESN'T MATTER FROM A FUNDING POINT OF VIEW: THAT'S NOT AFFECTED BY ANY
>> I HAVE THE NUMBER AT THE TOP OF MY HEAD RIGHT NOW.
>> YOU KNOW THAT SLIDE? REVIEWING THE FINANCIAL STATEMENTS, FORM AN OPINION IN THE FINANCIAL STATEMENTS AND EXPRESSING THE STATEMENTS, BASED ON THE PROCEDURES.
[00:55:39]
WE WILL READ THE INFORMATION THAT WAS NOT CONSIDERED AUDITED.JUST MAKING SURE, THERE'S NO, FROM THE NBA, FOR EXAMPLE, ACCORD BEING TO THE SUFFICIENT DEFICIENCIES, STATE AWARDS AND YOU SPEND -- STATE AWARDS, WILL PERFORM A SPECIAL AUDIT ON THE FEDERAL GRANTS.
QUESTION COMES OUT AS WELL, AND WILL FORM AN EXPRESSED OPINION IN THE SUPPLEMENTAL IN RELATION.
UPON THE REVIEW, CURRENT FUNDS EXPENDITURES TO INSURE, THOSE ARE -- AS WELL.
AND IT WILL COME TO OUR ATTENTION.
AND STANDARDS, WILL PERFORM, SOME PROCEDURES RELATED -- AND HOWEVER, IF ANYTHING
CAME TO OUR ATTENTION, RELATED TO FRY, WE HAVE TO PRESENT THAT AS WELL >> TO OVERSEE THE FINANCIAL PROCESS.
IT COMES FROM GOVERNMENT, PERMEATES THROUGHOUT THE SCHOOL.
PERFORMING ANY, AND FORMING CONFLICT OF INTEREST AND STRAJIZE.
AND LIKE THE ACCOUNTING PRINCIPLES THEY USE, PROVIDE UNRESTRICTED ACCESS TO THE INFORMATION THEY REQUESTED.
THEY PERFORM ALL THE ADJUSTING ENTRIES, MAKE DECISIONS AS IT RELATES TO THE ENTITY.
WE HAVE A TIME LINE, STARTING IN JUNE.
AND IN THAT PERIOD, IN JULY, WE HAD SOME OF THE PRELIMINARY RISK ASSESSMENT.
>> YOU CAN'T REVIEW EVERY TRANSACTION.
AND IT'S LOOKING AT CERTAIN ITEMS, BASED OWN THE SIZE.
AND THE RISK ASSOCIATED WITH IT >> AND WE HAD A 5 MILLION TRANSACTIONS, WOULD HAVE AN IMPACT ON A REASONABLE PERSON.
BASED FOR THE COLLEGE AND WE USE EXPENDITURES >> WE DID UTILIZE AN EXTERNAL AUDIT TEAM, AS IN CERTAIN SECTION, RELATED TO CERTAIN GRANTS.
IN THE BEGINNING, I WOULD USE THE OTHER THIRD PARTIES AS WELL.
>> WHAT SITUATIONS, AND OTHER PERSONNEL, OR THIRD PARTY.
>> SOMETIMES, IF THAT'S SOME IT QUESTIONS OR FORENSICS THAT ARE NECESSARY TO BE USED, SOME ISSUES THAT CREATE ADDITIONAL RISK IN OUR FIRM, DON'T HAVE ADDITIONAL RESOURCES.
SOMETIMES IT'S BASED ON THE STAFF YOU NEED >> THANK YOU .
AREAS FOCUS, PROMERATIONS, GOVERNMENT, PAYROLLS, THERE'S A LARGE RESPONSIBILITY.
THIS FUNDED A LOT THROUGH THAT >> WE'VE HAD AREAS OF FOCUS.
[01:00:03]
>> THERE'S CERTAIN AREAS, TO INSURE, THERE'S NO CONFLICTS OF INTEREST.
I THINK MOST OF YOU GUYS SEEFTD.
WE'VE NOT DONE ANYTHING TO INSURE.
AND TO COMMUNICATE, AND AS THEY ARE AWARE WHAT'S GOING ON AS PART OF THE FINANCIAL
SITUATION PEOPLE >> SORRY ABOUT THE SNIFFLES.
I DON'T HAVE THE C WORD >> AND TO SAY, WE'VE HAD, THE FINANCIAL STATEMENT, MODIFIED KIND OF CLEAN OPINION.
NO AUDITS, ADJUSTMENTS, TO BE SIZED.
AND IT WAS AN OPEN AND EFFECTIVE CHUNICATION, THROUGHOUT THE ENTIRE ENGAGEMENT.
>> AND THE ENGAGEMENT A COUPLE OF YEARS AGO HAS BEEN RESOLVED >> THEY KIND OF RECEIVED IT.
>> AND ALL OF IT, EVER RECEIVED, PRIMARILY DUE TO CARES, INCREASED THE SCOPE OF ENGAGEMENT A LITTLE BIT.
AND WILL FIND IN THE SINGLE AUDITS >> THERE'S DISAGREEMENTS WITH MANAGEMENT, WHICH THERE WERE NONE.
USE OF CONSULTANTS, AND HAVING, CONSULTANTS WITH OTHER KLTS, THERE WERE NONE.
AND WE REVIEWED SOME OF THE INFORMATION THAT'S DIRECTED, TO INSURE, THERE'S NO MATERIAL VARIANCES AND INCONSISTENCIES, WE DIDN'T SEE ANY.
WE DIDN'T INOCCUR ANY SIGNIFICANT DIFFICULTIES.
AND THEY ARE PROVIDING ALL THE INFORMATION.
>> IT SAYS, WE PROVIDED -- AND WHO CERTIFIES OUR STATEMENTS?
AND THE OFFICE OF FINANCE IN PUTTING EVERYTHING TOGETHER.
WE TAKE THE RESPONSIBILITY THEY WANT TO MAKE SURE, BY DOING THEIR TEST AND AUDIT, EVERYTHING THEY REPORTED IN THE STATEMENT, DOESN'T HAVE ANY MATERIAL.
>> WE'VE REVIEWED THE COLLEGE AFR, WHICH CONTAINS AUDITED FINANCIAL STATEMENTS.
>> WE AUDIT: THEY REVIEWED AS WELL.
AND THE AUDIT, OUR FIRM FORMS THE AUDIT.
>> I THOUGHT YOU DID, A LONG TIME AGO, WHEN YOU MADE THE STATEMENT.
>> WE AUDIT THE FINANCIAL STATEMENT.
THERE'S A MANAGEMENT THAT WILL REVIEW TO PREPARE.
THERE'S A COMBINATION OF ALL KINDS >> AND WE'RE PRETTY INCLINED.
>> IT'S THO LOT DULLER THAN IT WAS LAST YEAR >> I TRY NOT TO BE AS DULL AS THEY SAID.
>> THE LARGEST, ARE NOT RELATED TO PATIENT ACCOUNTABILITY >> AND WHAT IS CURRENT AND POST EMPLOYMENT BENEFITS AS WELL.
[01:05:02]
THESE ARE ALL ESTIMATES THAT ARE KIND OF REPAIR.AUDITING ESTIMATES, LOOK AT THE IDEAS, IN THE ESTIMATES, ASSUMPTIONS, ITEMS THAT WILL LOOK BACK.
TO SEE IF THERE'S MATERIAL CHANGES FROM PERIOD TO PERIOD.
AS PART OF THE PROCEDURES, WE'VE LOOKED AT THAT AND CONCLUDED THEY SATISFIED OURSELVES, THEY ARE AT LEAST FREE FROM MATERIAL STATEMENTS.
MATERIALLY, IT'S BEING MATERIALLY STATED.
>> WOULD YOU GIVE ME SOME EXAMPLES.
>> GIVEN THE FACT, THAT WE HAVE BEEN.
>> IT GOES THROUGH AND CALCULATES, SOME OF THE ASSUMPTIONS, WHAT THE COST IS, AND THE COST OF THE LIABILITY TO THE DISTRICT, TO THE COLLEGE -- WON'T CALL IT THE DISTRICT, BUT TO THE COLLEGE.
THAT LIE ABILITY, HAS BEEN PLACED ON THE FINANCIAL STATEMENTS.
THAT LIABILITY, IF YOU WANT TO SPEAK A LITTLE BIT MORE >> AND EMPLOYED.
>> THIS IS ERS'S, AND WHAT IT WOULD BE, IF THEY WERE TO MAKE THE CLAIMS.
>> AND SO, THEY LOOK AT THAT PENSION, IF YOU WILL AND THE HEALTH CARE AND DETERMINE WHAT THE -- WE'RE ALLOCATED A PORTION, BASED ON WHAT WE PAY IN THE STATE.
IT'S NOT AN INDIVIDUAL, LOOKS SEE, WHAT WE DO OR WHAT WE HAVE.
ONCE PEOPLE RETIRE, THEY ARE NOW PART OF THE STATE SYSTEM.
THEY ARE NO LONGER PART OF THE COLLEGE SYSTEM.
>> I DON'T THINK YOU WILL SEE THE IMPACT, IN THESE FINANCIAL STATEMENTS.
I'M VERY CURIOUS, ALONG WITH YOU, WITH WHAT'S HAPPENING AS I READ THE REPORTS ABOUT THE RETIREMENT.
WHAT'S GOING TO HAPPEN TO THE UNFUNDED LIABILITY WHEN WE GET THE REPORT.
ONE OF THE BIGGEST, WHAT DID THE STOCK MARKET DO? THEY BASICALLY OFFSET THAT WITH THE INVESTMENTS THEY HAVE.
THEY HAVE ASSETS THEY INVEST AND MAKE MONEY ON THE ASSETS TO OFFSET.
THEY GET THE CONTRIBUTION FROM THE STATE AND EMPLOYEE.
>> AND IT'S A LITTLE BIT OF A FRUSTRATION WHERE THIS CAME INTO PLAY, WHAT, 8-10
YEARS AGO >> THE INSTITUTIONS HAS A SAY.
EMPLOYEE DECIDES WHAT PROGRAM THEY GO INTO, DEFINED BENEFIT.
THE STATE DETERMINES WHAT THE ALLOCATION WILL BE AND THEY DETERMINE THE INVESTMENT, THEY DETERMINE WHAT WILL HAPPEN.
FROM ANY GAP, FROM WHAT THE STATE IS TAKEN CARE OF, THEY THEN ASSIGN THAT TO ALLSTATE AGENCIES IN THE INSTITUTIONS OF HIGHER EDUCATION.
WHAT THEY END UP, I FORGET, OVER 100 MILLION OR SOMETHING, THAT'S OUR PIECE OF LIABILITY, SHOULD AT SOMEHOW, STATE SHOULD BE INVOLVED EFFECTIVELY IN THAT
CASE >> EXCUSE ME, I'M CONFUSED.
WHERE DO WE ACCOUNT WHAT WE PAID? WHERE IS THAT ACCOUNTED FOR IN THE FINANCIAL STATEMENT?
>> IN THE FINANCIAL STATEMENT, AS WE MADE THE PAYMENTS, THAT'S REDUCTION ON WHAT WOULD HAVE BEEN CASH RESERVE.
THAT'S WHAT WE TOLD THE BOARD.
WE WOULD USE ONE TIME PAYMENTS AND WE WOULD USE CASH RESERVES TO PAY THOSE.
[01:10:09]
AFTER THE EMPLOYEE LEAVES, WE DON'T HAVE ANY MORE LIABILITY OR EXPENSE THAT GOES ALONG WITH THAT.THE STATE -- IF THEY GO ON COBRA.
>> IT WOULD BE INAPPROPRIATE TO RUN THROUGH A PAYROLL ACCOUNT.
YOU WOULD BE MISTAKING PAYROLL FOR WORK NOT DONE.
YOU HAVE TO TAKE IT FROM A SPECIAL FUND.
>> THAT MONEY WAS PAID NOT IN LUMP SUM BUT IN PAYMENTS.
ESTIMATED, IF YOU WILL, WHAT YOU WOULD BE GOING INTO THIS YEAR.
WE HAVE ACCRUED THAT ON LAST YEAR'S BOOKS FROM THIS AUDIT.
QUESTION, WHAT TYPE OF COLLECTIONS DO WE HAVE TO DO?
ON YOUR PROPERTY TAX, YOU HAVE A PROCESS, IN HOW YOU HANDLE PROPERTY TAX, THE ITEMS. YOU GUYS ARE DOING THE PROPERTY TAX.
>> CONTRACTED OUT; RIGHT? I DON'T THINK A LOT OF YOU GUYS, A LOT OF YOU HAVE COLLECTIONS, DONE INTERNALLY, UTILIZING THE THIRD PARTY.
>> USUALLY, STUDENT RECEIVABLES.
>> WE DO INTERNALLY TRY TO COLLECT.
>> THEY NEED TO BE PROPERTY TAXES OR TUITION.
>> WE HAVE NOT YET TO COLLECT IN THE STATE.
>> SOMETIMES, OUR NAME IS ATTACHED TO STUDENT LOANS, BUT THAT'S REALLY PART OF THE STUDENT LOAN PROCESS, NOT PART OF WHAT WE DO IN THE INSTITUTION.
AS PART OF THE FEES, WHAT DID YOU GET? YOU HAVE A REPORT ON THE 2021 FINANCIAL STATEMENT.
REPORT OF THE CONTROL OF FINANCES, THAT IS REQUIRED IN THE, REQUIRED IN THE FEDERAL PROGRAM, AS WELL AS STATE PROGRAMS PROVIDED, AS YOU GUYS TIMELY AND REPORTED COMMUNICATION, REGARDING TO THE AUDIT OR ACCOUNTING, INTERNAL CONTROL MATTERS.
COMMUNICATIONS TO MANAGEMENT AND THE COMMITTEE, WHICH IS CLEARLY IN THE PACKET.
WE HAVE TO DO, ONCE WE'RE COMPLETE, WE HAVE TO COMPLETE THE COLLECTION REFORM, AND IT'S REPORTED TO THE CLEAR ACCOUNTS.
THERE'S ALSO A REPORT ON THE PUBLIC INVESTMENT ACT.
AND THEN FOR CEA PROCEDURES, WILL PROVIDE RESULTS THAT IS TESTED.
>> COVID 19, LAST SLIDE, BASICALLY OUTLINES, THAT YES, WE'RE UNDER THE CIRCUMSTANCE OF COLLEGES, SUFFER A LITTLE BIT OF LOSS REVENUE AS WELL AS OCCURRED, PROCESSES, EFFECTIVE THEM.
OVERALL, THE COLLEGE, FINDING A WAY TO BE STILL, FOR THE CURRENT SITUATION.
>> LAST SLIDE, ANY OPEN DIALOGUE?
THE PAST TWO YEARS, HAS BEEN A PERIOD, COVERED WITH THE SUPPORT, REPRESENTS THE MOST FUNDAMENTAL CHANGE IN THE FINANCIAL STRUCTURE IN THE HISTORY OF THE COLLEGE.
WE'RE GOING FROM SEPARATE ALLOCATIONS TO SEPARATE COLLEGES, TO ACADEMIC OF STUDENT SERVICES, TO CENTRALIZED ALLOCATIONS TO THE PROMOST OF AREA SCHOOLS.
AND CENTRALIZED SERVICES IN THE CAMPUS, ARE YOU CONFIDENT THAT THAT TRANSITION HAS BEEN DESIGNED WELL AND MANAGED WELL IN THIS INITIAL CYCLE? I MEAN, BECAUSE THIS IS A REAL MONUMENTAL CHANGE IN THE FINANCES.
>> AND I GUESS, IT WAS NOT REALLY PART OF THE AUDIT PROCESS, TO ANALYZE THE OVERALL TRANSITION.
BUT KIND OF LOOKING INTO THE EXTERNAL, LOOKING AT THE OVERALL RESULTS, YOU KNOW, THAT GIVES ME COMFORT.
[01:15:01]
BECAUSE FOR 26 YEARS, ADD -- FEES A LITTLE BIT.I WAS KIND OF AWARE A LITTLE BIT BEFORE.
IT KIND OF SEEMS, THE PROCESS, FROM TAKING AWAY THE AUDITOR, LOOKING AT IT, TO MAKE SENSE FROM A BUSINESS STANDPOINT AND FIND AND THEN LOOKING AT THE END RESULTS, IT SEEMS, AT LEAST FROM A FINANCIAL STANDPOINT THE PROCESSES.
>> AND FROM THE STATE POINT OF VIEW, THEY NEVER LOOKED AT SEPARATE COLLEGES.
IT'S ONLY A SINGLE INSTITUTION HAS ONLY EXISTED IN THE EYES IN THE STATE OF TEXAS.
WE HAVE TO ROLL THAT OUT ANYWAY.
>> THE HARD PART, IT'S ALL FUNDS, ALL SCHOOLS, ALL COLLEGES, THEY WERE NEVER RECOGNIZED.
IT'S BEEN SINGLE AREA CONSOL LIDARITY.
AND WE USED TO HAVE A BREAK OUT OF REVENUE AND EXPENSES, AND IT WAS BASICALLY TWO PAGES.
FOR THE PURPOSES, WE USED HAVE REVENUE AND EXPENSES, AND BASICALLY TWO PAGES STUCK IN THE ANNUAL REPORT WHICH WE DON'T DO ANY MORE.
>> I WOULD ARGUE WHAT WE HAVE NOW, THE LAST TWO WOULD INCLUDE A DUPLICATIONS AND OTHER THINGS THAT WERE AVAILABLE.
NO LONGER DO WE HAVE THAT OCCURRING.
THE STATE REQUIREMENTS ARE ROLLED UP IN A DIFFERENT WAY.
BOTH OF YOU ARE CONFIDENT WE HAVE PROCESSES THAT WILL ACCURATELY REFLECT OUR EXPENDITURES?
>> AND THE SECOND QUESTION, THE REPORT MENTIONED THREE STRATEGIC DOCUMENTS, THE BOARD STRATEGIC PLAN, AND ALSO OUR ANNUAL BUDGET.
I THINK WERE THE BOARD'S POINT OF VIEW, ANNUAL BUDGET APPROVED IN AUGUST, THE MOST IMPORTANT MECHANISM OF FINANCIAL CONTROL.
COULD WE TAKE YOUR CLEAN ART AS ASSURANCE, THAT ALL EXPENDITURES THAT WERE MADE DURING THE AUDIT PERIOD, ARE CONSISTENT WITH THE BUDGET THAT WE APPROVED.
WE CAN TAKE COVER THAT WE REVIEW THE BUDGET PROCESS, IN RELATION TO HOW WE USE IT.
AND SO, YOU GUYS ARE VERY DILIGENT IN YOUR BUDGET PROCESS.
AND MONITOR EXPENSES DIRECTLY TOWARDS THAT.
THAT'S EXACTLY WHAT YOU EXPECT, NEEDS TO BE ADOPTABLE, AND COME BACK BEFORE THE BOARD.
ENTERPRISE FUND, IS NOT AN AUDITED REPORT.
WE DID NOT PROVIDE THE AUDIT PROCEDURES, THAT YOU NORMALLY DO ON A BUDGET, IF THIS WAS A GOVERNMENT AGENCY.
HOWEVER, BECAUSE WE KNOW IT'S AN IMPORTANT ITEM FOR THE SCHOOL, WE KIND OF WENT OUTSIDE OF THE REQUIREMENTS UNDER THE AUDITING STANDARDS AND LOOKED AT THE BUDGETING PROCESS AND WE DID FEEL COMFORTABLE, IN THE BUDGET AS DESIGNED.
>> DOES THAT INCLUDE NOT JUST HOW THE BUDGET IS PUT TOGETHER >> THE BUDGET PROCESS HOW YOU DEVELOP IT, TO HOW YOU'RE DEVELOPING EXPENDITURES AND HOW IT TAKES PLACE.
IT'S THE ENTIRE BUDGET CYCLES.
ARE YOUR APPROVES, APPROPRIATE IN THE -- IS THERE BUDGET AVAILABLE, BEFORE THE BUDGET IS APPROVED.
SOME ENTITIES HAVE BUDGETS, THAT THEY KIND OF UTILIZE AN THEY AMEND IT IMMEDIATELY.
YOU GUYS ARE DILIGENT, TO MAINTAIN, THIS IS THE DOLLAR AND EXPENSE FOR THE AREA, IT'S DIFFICULT TO DO HERE.
FROM AN AUDITOR'S STANDPOINT, I SAY YOUR BUDGETARY PROCESS, ACROSS THE BOARD IS HIGHER QUALITY.
>> IN THE ONE COLLEGE SYSTEM, THEY HAVE READJUSTED AND DELEGATIONS.
YOU LOOK AT THE DELEGATIONS AND ARE YOU COMFORTABLE THAT THEY WERE ADHERED TO, IN TERMS OF WHO IS MAKING DECISIONS IN APPROPRIATE LEVELS OF OPERATION.
>> SO NOT EXACTLY LOOKED IN THAT AREA.
I KNOW THEY PROVIDED SOME REVIEW OF THE NEW FORMAT ON THE -- WHO WAS AUTHORIZED FOR PAYMENTS IN THE LIKE.
I DON'T KNOW EXACTLY, IF IT FIT WITH THE CONCLUSIONS.
I THINK WE WILL GET THERE WITH THOSE RESULTS.
>> IF YOU COULD LET US KNOW THAT APPRECIATE IT.
[01:20:01]
[5.1. Committee Notes]
>> NEXT ON THE AGENDA WILL BE THE KENNEDY NOTES.
THAT'S THE AUDIT NOTES, AND THE CHANCELER TRAVEL REPORT.
YOU ALL HAD A CHANCE ON THAT ONE.
THERE WILL BE AN EXECUTIVE SESSION, PLANNED FOR THE END OF THE MEETING.
[6. Executive Session (if required)]
WE WILL ADJOURN FOR EXECUTIVE SESSION FOR ONE OR MORE FOLLOWING REASONS.CONSULTATION, WITH ATTORNEY, REGARDING THE LEGAL MATTERS AND PENDING OR CONTEMPLATING LITIGATION OR SETTLEMENT OFFERS SECTION 551.071.
PERSONNEL MATTERS REGARDING APPOINTMENT EVALUATION, ASSIGNMENTS, DUTIES, DISMISSAL OF OFFICERS OR EMPLOYEES SECTION 551.074.
DELIBERATE REGARDING REAL PROPERTIES, SINCE OPEN DELIBERATION WILL HAVE A DILIGENT AREAS EFFECT OF NEGOTIATIONS WITH A THIRD PERSON.
THAT'S SECTION 551072 AND DELIBERATE REGARDING SECURITY DEVICES OR SECURITY AUDIT SECTIONS, THAT'S 551.076 AND 551.089, WILL BE BACK FOR PROCUREMENT, WHEN WE'RE DONE.
AT THIS POINT, CALL FOR THE APPOINTMENT FOR THE JURNMENT TIME.
>> FIVE MINUTE BREAK, GUYS AND WE'LL ALL MEET IN THERE.
* This transcript was compiled from uncorrected Closed Captioning.