Dec 06, 2022 Audit Committee Meeting

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IN ACCORDANCE WITH.

WE HAVE PERFORMED IN ACCORDANCE WITH CHAPTER 551 OF THE OF OPEN MEETINGS ACT.

[1. Roll Call - Announcement of a Quorum]

THIS AUDIT COMMITTEE MEETING IS BEING BROADCAST OVER THE INTERNET AND AUDIO RECORDING AND TRANSCRIPTS OF THIS MEETING ARE BEING MADE AND WILL BE AVAILABLE TO THE PUBLIC ON THE BOARD'S WEBSITE AFTER THE MEETING AT A LATER DATE.

CHANCE. CAN YOU PLEASE CONFIRM THIS MEETING HAS BEEN POSTED IN ACCORDANCE WITH THE LAW?

[2. Certification of Notice Posted for the Meeting]

THANK YOU. AND YOU HAVE THAT MEMORIZED VERSION OF MEMORIZE SECTION IN THE CHAPTER AND EVERYTHING IT WILL MEAN.

ARE THERE ANY CITIZENS DESIRING TO ADDRESS THE BOARD? NO, MA'AM, NOT ME.

THANK YOU VERY MUCH. WITH THAT, YOU PROCEED TO THE PRESENTATION BY MCCONNELL JONES, OUR EXTERNAL AUDITORS, JOHN ROBERTSON.

[4.1. 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, 2022 and 2021]

NOBODY UP THERE. YOU CAN TAKE ANY PEER TO PEER FROM LEFT TO RIGHT.

BE A LITTLE CENTRIST.

THIS IS MARVIN WILLIAMS WITH MCCONNELL JONES.

HE'S OUR MANAGING PARTNER TO THE REVIEWS, OUR AUDIT.

I WON'T GET THEIR SHOW, SO I'M GOING TO SIT DOWN.

BUT JUST SO YOU ALL KNOW, THE FINANCE DEPARTMENT PUTS THE AUDIT, PUTS OUR ANNUAL REPORT TOGETHER.

WE TAKE FULL RESPONSIBILITY FOR PARTS THAT ARE IN THERE, AND THEY SPEND A LOT OF TIME REVIEWING OUR WORK PAPERS AND REVIEWING THE NUMBERS TO MAKE SURE THEY ARE ACCURATELY PORTRAYING SO THAT WHEN IT'S OUT IN PUBLIC, EVERYTHING THAT WE HAVE IS UP TO SNUFF AND KOSHER.

SO WITH THAT, I'LL TURN IT OVER TO YOU.

YOU SO MUCH. GOOD MORNING, BOARDS OF TRUSTEES FOR THIS MORNING.

AS I SAID, THE DEPARTMENT IS ON TRACK TO ENGAGE WITH THIS YEAR.

THERE ARE CERTAIN COMMUNICATIONS THAT THEY ENDED UP.

WE'LL KIND OF GO OVER AS PART OF THE PRESENTATION THAT FIRSTLY, THE MANAGEMENT IS RESPONSIBLE FOR THE PRESENTATION OF THE FINANCIAL STATEMENTS.

MANAGEMENT PUTS TOGETHER FINANCIAL STATEMENTS, MANAGEMENT DESIGNS, CONTROLS AROUND THE FINANCIALS.

MANAGEMENT IS RESPONSIBLE FOR EVALUATING AND BUILDING AS A GOING CONCERN.

THAT'S A NEW THING THAT WAS KIND OF ADDED.

THERE'S BEEN SOME NEW STANDARDS THAT CAME OUT OVER THE LAST COUPLE OF YEARS AND THEY WANT US TO LET US KNOW THAT MANAGEMENT'S MAKING SURE THAT IT CAN CONTINUE AS A GOING CONCERN THAT'S DEFINED AS A YEAR FROM RELEASE DATE, AND THERE'S NO ISSUE RELATED TO THAT.

OUR RESPONSIBILITY IS TO EXCESS EXERCISE, PROFESSIONAL JUDGMENT AND MAINTAIN PROFESSIONAL SKEPTICISM.

PROFESSIONAL SKEPTICISM, AS YOU KNOW, THAT A PRUDENT INDIVIDUAL WOULD CONSIDER CERTAIN THINGS AS RISKY OR UNUSUAL ENTERTAINMENT OR JUST PROFESSIONAL PRECAUTIONS THAT CORRECTLY, I'M WORKING TO IDENTIFY RISK OF MATERIAL MISSTATEMENTS TO THE FINANCIAL STATEMENT, WHETHER DUE TO FRAUD, ERROR OR DESIGN, TO AN UNDERSTANDING OF THE INTERNAL CONTROLS AND HAVING TESTING RELATED TO THE INTERNAL CONTROL RELATIVE TO THE AUDIT TO BE ABLE TO UNDERSTAND WHETHER OR NOT THERE'S ANY RISKS AROUND THE CONTROL SYSTEM.

AND WHEN I'M DOING A CONTROL AUDIT SPECIFIC, BUT WE ARE TRYING TO DO RELATED IN RELATION TO THE FINANCIALS AND IF THERE'S ANYTHING THAT COMES TO OUR ATTENTION AS PART OF IT, WE WILL REPORT THAT TO YOU.

EXCUSE ME, DO YOU MIND JUST HAVING A CITY CENTER THE FOR THE LIVESTREAM? THANK YOU, BRIAN. EXCUSE ME.

AND THEN, MR. MOLINA, THIS PRESENTATION IS NOT IN THE AUDIT COMMITTEE PACKET.

IT'S THE ONE YOU SENT TO US THIS MORNING OR LAST NIGHT.

BUT I DO BELIEVE IT'S ON THE DESKTOP AS WELL, SO IT'S ON THE NEXT TAB OVER.

IT SHOULD BE WHAT YOU GOT THE HARDCOVER AND YOU GOT.

GOT IT. GOT IT.

THANK YOU. WE'RE ALSO RESPONSIBLE TO EVALUATE THE PROGRESS OF THE ACCOUNTING POLICIES THAT ARE USED, MANAGEMENT SLASH CERTAIN POLICIES THAT GO WITHIN THE FINANCIALS.

AND WE'RE ENSURING THAT THOSE THE ESTIMATES BY OUR MANAGEMENT IS REASONABLE AS WELL.

EVALUATE THE OVERALL PRESENTATION OF THE FINANCIAL STATEMENTS AND THEN WE'RE SUPPOSED TO CONCLUDE BASED OFF OUR JUDGMENT OF WHETHER THERE ARE ANY CONDITIONS OR ANY EVENTS THAT RAISE SUBSTANTIAL DOUBT IN THE ORGANIZATION BEING CONTINUED AT THE END OF ALL OF THESE PROCEDURES, WE ARE TO RESPOND AND DEVELOP AN OPINION ON THE FINANCIAL STATEMENTS.

DO THEY FAIRLY PRESENT THE FINANCIAL RECORDS OF THE ORGANIZATION IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AND THE SUPERVISION WE HAVE IN COMMON UNMODIFIED OPINION. THAT MEANS THAT THERE'S NOTHING THAT MATERIALLY HAS TO HAPPEN TO THE FINANCIAL STATEMENTS.

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IT'S ALSO OUTLINED IN OUR ENGAGEMENT LETTER COMPLIANCE WITH ETHICS REGARDING MAINTENANCE.

WE'RE REQUIRED TO BE INDEPENDENT AND MEANS THAT WE DON'T HAVE ANY DIRECT DEALINGS WITH THE FINANCIAL OBLIGATION THAT WOULD AFFECT OUR OPINION.

THERE ARE CERTAIN REQUIREMENTS IN THE YELLOW BOOK THAT REQUIRE HOLDING WITHIN OUR FIRM TO ENSURE THAT THEY MEET THE REQUIREMENTS OF INDEPENDENCE PRIOR TO WORKING ON THE ENGAGEMENT.

SIGNIFICANT RISKS THAT WERE IDENTIFIED RELATE TO REVENUE RECOGNITION.

IT'S ALWAYS AT RISK, ACCORDING TO ME.

OUR THINGS WERE PERFORMED IN THE RIGHT PERIOD.

THAT RELATES HERE HEAVILY WITH YOUR TUITION, WITH YOUR FSP REVENUE THAT YOU GET FROM STATE FUNDING, ETC..

AND THEN THE ALLOCATION OF THOSE FUNCTIONAL EXPENSES.

THOSE ARE ALSO AN ISSUE THAT HAVE, AS YOU CONSIDER SIGNIFICANT RISK, YOU POLICY THAT TOOK PLACE THROUGH THE YEAR 80, 79, 92, 93 AND THE VARIOUS NEW STANDARDS.

IT SEEMS LIKE GASB WAS ALWAYS COMING UP WITH SOMETHING NEW TO ADD MORE WORK TO THE OVERALL PROCESS.

I'M THE LARGEST INDICATOR WITH GADSBY 87.

MANAGEMENT HAS MADE THE DECISION AND WE AGREE WITH THEM THAT OVERALL YOU HAVE LESS AND LESS ORDER TYPE OF ARRANGEMENTS AND THE TWO LEASES THAT THEY THAT WOULD CREATE A LIABILITY WILL NOT MATERIALIZE.

THE FINANCIALS TAKEN AS A WHOLE.

AS A RESULT, THOSE WERE LEFT OFF EVEN THOUGH WE IMPLEMENTED THE DISTRICT IN IMPLEMENT COMMUNITY COLLEGE DID IMPLEMENT A GASB 87.

THAT LAW RELATES TO ON THE RECEIVABLE SIDE AND THAT REALLY ALMOST GROSSES UP YOUR BALANCE SHEET.

YOU END UP WITH A RECEIVABLE ON A DEFERRED INFLOW.

IT HAS NO REAL NET EFFECT OTHER THAN FROM A DISCLOSURE AND A PRESENTATION STANDPOINT.

A SIGNIFICANT ACCOUNTING ESTIMATE'S MOST SIGNIFICANT ACCOUNTING ESTIMATE RELATES TO THE USEFUL LIVES, DEPRECIATION, EMPLOYEE AND RETIREMENT ALLOCATIONS. AND THERE'S A LARGE, LARGE ESTIMATE AS IT RELATES TO THE ALLOWANCE FOR COLLECTIBLES.

WE REVIEWED THE INPUTS AND MANAGEMENT'S POSITION ON HOW THEY DEVELOPED THOSE ESTIMATES.

WE LOOK BACK AT THOSE ESTIMATES AND LOOK DETERMINE HOW THEY RESULTED.

WHEN YOU DO A LOOK BACK AT LAST YEAR'S AND HOW THE ACTIONS ARE COMING IN AND BASED OFF OF THOSE PROCEDURES, WE CONSIDER THAT THEY WERE REASONABLE IN RELATION TO THE FINANCIAL STATEMENTS TAKEN OF THE WHOLE FINANCIAL ESTATE DISCLOSURES.

THERE'S NUMEROUS NOTES WITHIN THE FINANCIALS, WITHIN THE CFR AS WELL RELATED TO YOUR INVESTMENTS RETIREMENT OR SOME OF THE MOST MAJOR NOTES THAT RESIDE THERE AND THE EFFECT THAT THAT HAS ON THE OVERALL FINANCIAL POSITION OF THE ORGANIZATION.

UNUSUAL TRANSACTIONS.

WE NOTED NO SIGNIFICANT OR UNUSUAL TRANSACTIONS DURING THE YEAR IDENTIFIED OF SUSPECTED FRAUD.

MANAGEMENT HAS REPORTED THAT THERE WERE TWO AREAS WHERE FRAUD MAY HAVE OCCURRED.

THEY TOOK THE CAUTIONS ASSOCIATED WITH THAT.

AND DOES IT APPEAR TO BE AN ISSUE THAT'S GOING TO HAVE A MATERIAL IMPACT ON THE OVERALL? SIGNIFICANT DIFFICULTIES AND CHALLENGES PROVIDE NO SIGNIFICANT DIFFICULTIES.

MANAGEMENT WORKS DILIGENTLY WITH OUR TEAM ALL THE WAY UP TO THE END, OUR WEEKENDS, ETC.

AND CONSIDERING ALL THE PROCESS AND THE FINANCIALS TOGETHER, I THINK IT WOULD BE GOOD TO SEEN ON THIS PART OF EVERY YEAR THAT WE'VE RECEIVED.

OUR AUDITORS EXTERNAL AUDITORS REPORT.

THANK YOU TO OUR OUR STAFF BECAUSE THERE'S NEVER BEEN AN ISSUE IN TERMS OF THE COOPERATION AND WORKING WITH OUR EXTERNAL AUDITORS.

SO THANK YOU FOR CONTINUING.

GOOD JOB. UNCORRECTED MISSTATEMENTS.

THERE WERE NO UNCORRECTED JOURNAL ENTRIES, OTHER THINGS POSTED, ETC..

LOOKING FORWARD TO THE NEW SYSTEM.

HOPEFULLY THAT THERE ARE A LOT OF TOPSIDE OF ENTRIES THAT ARE REFLECTED WITHIN THE SYSTEM.

AND THAT'S JUST THE PROCESS THAT COMMUNITY COLLEGE HAS BEEN GOING ON FOR A WHILE, WHICH CREATES A LITTLE BIT OF A CHALLENGE WHEN YOU'RE ACTUALLY TRYING TO TIE EVERYTHING IN.

BUT WE'VE GOT A PROCESS THAT WE'VE FINALLY LEARNED AND NOW NEXT YEAR IS GOING TO BE READY PROCESS.

SO WE'LL SEE HOW IT WORKS OUT.

AND WE'RE NOT DISAGREEING WITH MANAGEMENT.

NO INDICATIONS OF CONFRONTATIONS WITH OTHER AUDITORS OR PAINTING SHOPPING EXAMS. A CLEAN OPINION. THE ONLY NEED FOR SUCH SIGNIFICANT MATTERS AND FINDINGS IN NO SIGNIFICANT MATTERS OR FINDINGS ARE OR IF A TRANSACTION THAT OCCURRED DURING THE YEAR OR ANY OPERATING CONDITIONS THAT YOU REQUIRE TO BE REPORTED OR HAS AN EFFECT.

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AND AS WE SAID, NO SIGNIFICANT DEFICIENCIES OR MATERIAL WEAKNESSES, NO SINGLE AUDIT FINDINGS, MANAGEMENT LETTERS WERE IDENTIFIED.

AND AGAIN, IT'S AN UNMODIFIED OPINION ON BOTH THE FINANCIAL STATEMENTS AS WELL AS ON A SINGLE AUDIT.

WITH NUMBERS. I'M ASKING YOU TO GIVE US ALL THE THINGS YOU CAN SEE HERE THAT SHOWS THE TWO YEAR TREND.

YOU KIND OF SEE THAT INVESTMENTS ARE UP 58% YEAR OVER YEAR.

JUST KIND OF A DECISION BY MONEY MANAGEMENT WITHIN THE ORGANIZATION HOW THEY WANT TO MOVE FROM CASH TO INVESTMENTS.

DO THEY NEED THE FUNDS FOR IMMEDIATE NEEDS AND THEN ALSO TO EARN A LITTLE BIT ADDITIONAL REVENUES AS THE MARKET HAS CHANGED ON WHAT THEIR EARNINGS ARE FOR CASH CAPITAL ASSETS, THERE'S BEEN A LOT OF PRODUCTION AND ADDITIONS AND THIS IS THE NET AMOUNT.

SO THIS ALSO INCLUDES THE NET OF DEPRECIATION AND THAT'S INCREASED ABOUT 7% TOTAL REVENUES.

YOU KIND OF SEE IT UPTICK COMING BACK AS A BYPRODUCT OF COVID KIND OF DISAPPEARING A LITTLE BIT.

FULLY DISAPPEAR. BUT THE EFFECT ON FINANCIALS HAVE KIND OF PRODUCED A 2% INCREASE IN OVERALL REVENUES.

THE EXPENSES EXPENSES INCREASED BY MORE THAN THE REVENUES HAD.

SO THAT'S KIND OF JUST KIND OF THE NATURE.

SOME OF THE COST ARE KIND OF GOING ON THROUGHOUT THE PERIOD AND THEN ADDITIONAL DEPRECIATION, SOME OF THOSE EXPENSES LOOKING AT THE BACK HALF AND KIND OF SEE THE OVERALL EFFECT AND THE CHANGE IN THAT POSITION IS A HEALTHY ONE.

IT'S NOT AS STRONG AS 2021, BUT 2021 WAS A WEIRD YEAR ON HOW THAT ALL WORKS AND IS THE COMPARATIVE ABILITY BETWEEN YEARS WILL CONTINUE TO GET BETTER AS THINGS KIND OF STREAMLINED THE EFFECTS OF COVID.

THEY ALSO OUTLINED SOME OF THE REASONS FOR SOME OF THE CHANGES OUT THERE AS WELL.

THESE QUESTIONS IN OPEN DIALOG IS KIND OF THE LAST AREA, AS I SAID.

OVERALL, IT'S BEEN A PLEASURE WORKING WITH YOU GUYS FOR THE LAST THREE YEARS NOW, LOOKING FORWARD TO WRAPPING THIS UP AND BEING ABLE TO PUT A BOW ON THIS ONE AND GO ON TO THE NEXT ONE. ANY QUESTIONS? COMMENTS? YES.

TRUSTEE COMPTON. YOU HAVE YOU IDENTIFIED TWO AREAS WHERE IT COULD HAVE MAY HAVE OCCURRED AND YOU ELABORATE ON THAT MANAGEMENT KIND OF.

JOHN. ROB, YOU KNOW, UNDER MY BELT, ONE OF THOSE IS SOMETHING THAT WE'VE IDENTIFIED AND HAD THE CONVERSATION PREVIOUSLY IN EXECUTIVE SESSION THAT THAT'S ONGOING.

LET ME SPEAK TO THAT A LITTLE BIT BECAUSE IT IS AN ONGOING INVESTIGATION.

WE DETECTED DURING THE YEAR WHAT WE SUSPECTED TO BE FRAUD IN CONNECTION WITH SOME CARES ACT MONIES WE TOOK.

WE DID AN INTERNAL INVESTIGATION WHICH THE BOARD IS AWARE, ALSO REFERRED THAT TO THE AUTHORITIES, WHICH IS CONDUCTING AN ONGOING INVESTIGATION.

SO I HESITATE TO SAY MORE ABOUT THAT BECAUSE IT IS AN ONGOING LEGAL MATTER INVOLVING FEDERAL AUTHORITIES.

ALSO INTERNALLY, AND I WOULD DEFER TO LAURIE IF I DON'T GET THIS CORRECT, BUT THERE WAS A REPORT OF ALLEGED MIS MISUSE OF TIMESHEETS BY A PART TIME STUDENT EMPLOYEE.

THERE WAS CONCERN ABOUT TIMESHEETS THAT MIGHT HAVE BEEN SUBMITTED THAT DID NOT REFLECT TIME ACTUALLY WORK.

THERE WAS AN INVESTIGATION DONE INTERNALLY WHICH CONFIRMED THE TIMESHEET ABUSE.

IT WAS REFERRED BOTH TO HR FOR ACTION WITH RESPECT TO THE SUPERVISOR THAT APPROVED THE TIMESHEET AND ALSO TO AUTHORITIES IN WHICH DECLINED TO PROSECUTE BECAUSE IT WAS A DE MINIMUS AMOUNT AT ISSUE.

AND THOSE ARE THE TWO INSTANCES.

WHAT? I'M GOING TO ASK.

SO YOU SAY A PART TIME STUDENT? A PART TIME STUDENT. EMPLOYEE.

THAT'S CORRECT. THAT'S STUDENT.

THAT'S STUDENT. ALSO WORKING PART TIME FOR DOWNTOWN.

THAT'S CORRECT. AND THAT PERSON IS NO LONGER EMPLOYED BY US? NO. OKAY.

AND NO LONGER STUDENT. OKAY, THEN.

SLIDE NINE A REVIEW OF YOUR FINANCIAL STATEMENTS THAT LAST.

THE POINT IS THAT THE INCREASE IS DUE TO.

I'M NOT SURE I UNDERSTAND WHAT'S WHAT YOU'RE TRYING TO SAY THERE.

SO I THINK REALLY YOUR OVERALL CHANGE IS THIS KIND OF YOU HAVE LAST YEAR YOU ENDED UP WITH A $97 MILLION NET CHANGE IN NET ASSETS THIS YEAR IN NET 64.

THAT STILL MEANS THAT YOUR REVENUES ARE HIGHER THAN WHAT YOUR EXPENSES WERE.

BUT THE CHANGE IN REVENUES OVER THE CHANGING EXPENSES, THE EXPENSES INCREASED OVERALL REVENUES DID STILL LEFT YOU WITH A NET POSITIVE CHANGE IN NET ASSETS, BUT IT WASN'T AS LARGE AS WHAT THE CHANGE IN ASSETS WAS THE PREVIOUS YEAR.

I THINK THAT THE SECOND WORD IS SUPPOSED TO BE IS YES.

[00:15:01]

THIS BASICALLY REFLECTS THAT, WHAT WAS IT, $30,000 THAT HAD BEEN IDENTIFIED EARLIER IN THE YEAR THAT WE MAY HAVE A SHORTFALL OR THAT WAS THE DIFFERENCE HERE.

THE 30 MILLION THAT WE'RE TALKING ABOUT, WE WERE BALANCING THE BUDGET FOR FY 23 WOULD NOT BE REFLECTED IN THIS AUDIT BECAUSE THIS AUDIT IS FOR FY 22.

THE CHANGE IN NET POSITION IS MORE ATTRIBUTED TO THE WAY THAT WE SPEND CASH, SO WE HAVE MORE GRANTS COME IN.

WE ALSO HAD A CHANGE IN OUR APPLE FORM TAX REVENUE, SO THAT CAME IN, BUT THEN OUR EXPENSES INCREASE EITHER LIKE AMOUNT OR A LITTLE BIT MORE.

WE ALSO EXPENDED MONIES FROM OUR CASH RESERVES IN ORDER TO SELF-FUND OUR ONGOING CAPITAL PROJECTS.

SO THAT ALSO IMPACTED OUR DEBT POSITION.

BECAUSE WHEN WE FIRST TALKED ABOUT THAT 30 MILLION OR WHATEVER THAT WAS BEFORE WE HAD GOTTEN THE CERTIFICATION FROM THE TAX SUMMIT.

YES. YES.

BUT THE CURRENT YEAR BUDGET WAS BALANCED WHEN WE BROUGHT IT TO THE BOARD FOR APPROVAL TO MAKE SURE THAT IT WAS SIGNED.

OKAY. THANK YOU. ANY OTHER QUESTIONS? COMMENTS? MADAM CHAIR, IF I CAN, IF YOU WOULD INDULGE ME A MINUTE.

I'D LIKE TO INTRODUCE STAFF THAT WAS INVOLVED.

YES, SIR. CHIEF FINANCIAL OFFICER JESSICA THOMAS, WHO WAS UP HERE SPEAKING EARLIER.

THIS WAS HER FIRST YEAR OF REALLY TAKING AN ACTIVE ROLE IN PRODUCING THE ANNUAL REPORT.

HAD THIS. I WON'T SAY HOW MANY YEARS YOU HAVE BEEN DOING THIS.

SHE PREDATES ME AND HER TITLE.

PLEASE. OH, I'M SORRY.

PART IS HER TITLE WAS COMPTROLLER.

WHICH IS THE BEST THING FOR YOU ALL TO KIND OF UNDERSTAND.

IT'S NOW SENIOR DIRECTOR OF GENERAL LEDGER ACCOUNTING AND THEN IVAN RUIZ SITTING NEXT TO HER.

THIS IS YOUR SECOND YEAR BEING INVOLVED.

SECOND OR THIRD, THIRD, THIRD, THIRD YEAR BEING INVOLVED IN THE ANNUAL REPORT.

AND THE GOOD NEWS IS SHE DOESN'T LOOK LIKE ME.

HE LOOKS THE WHOLE YEAR.

WELL, NOW WE HAVE SOME YOUNGER BLOOD THAT WE'RE WORKING ON AND TRAINING.

I WAS RECENTLY, RECENTLY PROMOTED TO THE ROLE OF ASSISTANT DIRECTOR FOR GENERAL ACCOUNTING.

THANK YOU, MADAM CHAIR.

NO, THANK YOU. I UNDERSTAND.

HE WAS RECENTLY PROMOTED TO A ROLE OF ASSISTANT DIRECTOR.

IVAN. YOU ARE A SENIOR ACCOUNTANT.

HE WAS A SENIOR ACCOUNTANT PRIOR, AND HE JUST RECENTLY ASSUMED THE ROLE OF ASSISTANT DIRECTOR AND HANDLES OUR INVESTMENTS.

MA'AM. MY TEAM STILL HANDLES INVESTMENT.

JOHN HOPPER IS OUR SENIOR DIRECTOR FOR TREASURY MANAGEMENT.

GOOD JOB. GOOD JOB.

IT'S ALWAYS AS A TRUSTEE.

GOOD TO KNOW THAT OUR AUDIT, EXCEPT ONE YEAR THERE WAS A MINOR THING THAT WAS IN THE REPORT.

BUT BASICALLY OUR AUDITS COME BACK THAT WE HAVE GOOD SOUND FINANCIAL PRACTICES AND WE'RE GOOD STEWARDS OF OUR TAXPAYER DOLLARS.

YES, TRUSTEE RAISES QUESTIONS FOR JOHN TESTER.

I'M JUST, YOU KNOW, ON THE SLIDE 19, WE'RE SHOWING A 58% INCREASE IN INVESTMENTS.

AND WE STARTED TO DO THE PURCHASING OF AGENCY MUNICIPAL SECURITIES.

I MEAN, THIS IS WHERE WE. THIS IS HOW WE HOLD ASSETS, RIGHT? WE MOVE OUT OF CASH, OUT OF CASH TO MOVE INTO INVESTMENTS.

AND SO IT REALLY JUST DEPENDS ON THE TIMING IN WHICH THE FINANCIALS ARE RUN.

AND THEN ALSO WHAT'S HAPPENED IN THE MARKET.

WE HAVE TAKEN THE POSITION OF YEARS PRIOR THAT WE KEPT OUR INVESTMENTS A LITTLE MORE LIQUID, MEANING THERE WAS A LESS THAN 90 DAYS IN OUR INVESTMENT POOLS.

BUT THEN AS THE MARKET BECAME MORE STABLE AND LESS VOLATILE, INTEREST RATES INCREASED, THEN WE MOVE THINGS INTO LONGER TERM INVESTMENTS, MEANING UP TO 90 DAYS OR MORE THAN 90 DAYS. SO THAT'S WHY YOU'LL SEE THIS CHANGE IN POSITION HERE, ALMOST SAME AMOUNT OF CASH OR A LITTLE BIT MORE.

BUT IT WAS STILL BASICALLY DUE TO FLUCTUATIONS IN THE MARKET AND THUS TAKING ADVANTAGE OF SOME OF THOSE INCREASED RATES.

OH, I'M SORRY.

YEAH. LOOK, ON PAGE THREE ON THE FINANCIAL REPORT, YOU KNOW, OUR STATEMENT IN THAT POSITION, IT SHOWS WE'VE GOT A $100 MILLION LESS.

THAT IS ALMOST A DOLLAR FOR DOLLAR FOR OUR OUR SELF FINANCING THAT WE DID FOR OUR CAPITAL PROJECTS.

AND REMEMBER 114 MILLION AGAIN ON WHAT WE SELL FINANCE, WE WILL REIMBURSE OURSELVES WITH THE PROCEEDS FROM THE BOND ISSUANCE NEXT MONTH.

SO OUR CASH WE'LL GO BACK TO.

CORRECT. HOW DO YOU GUYS INTERPRET THAT? WE CHANGE OUR RESERVE POLICY.

WE DID FROM MONTHS TO TWO AND FROM FOUR FOR FOUR MONTHS TO TWO MONTHS OF OF AVERAGE REVENUE.

WHAT DO YOU COUNT IN FOUR MONTHS?

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AND SINCE OUR BUDGET'S ALWAYS BALANCED AND BASICALLY IT'S EQUAL TO THE SAME THING.

SO IF WE HAVE A $500 MILLION BUDGET, WHATEVER, DIVIDED BY 12 TIMES FOUR, THAT'S THE AMOUNT THAT WE WILL MAKE SURE THAT WE CONTINUE TO HAVE IN CASH RESERVES THAT WE WOULD NOT PROVIDE FOR ANY OTHER PURPOSE.

SO JUST CASH RESERVES, NOT THESE OTHER INVESTMENTS? WELL, THE INVESTMENTS ARE ONE AND THE SAME.

SO WE COULD WE COULD LIQUIDATE ANYTHING AT ANY POINT.

SO WE CONSIDER THAT CASH AND THE ACTUAL INVESTMENT INSTRUMENTS THAT WE USE AND NOBODY WANTS A REVOLVER RIGHT NOW ALMOST ABOUT SEVEN AND ONE HALF.

SO WE'RE STILL WELL ABOVE.

WE'RE STILL WELL ABOVE, YES.

SO EVEN WITH UTILIZING THE CASH THAT WE DID FOR SELF FINANCING, WE STILL HAVE AN EXCESS OF, LIKE I SAID, OVER SEVEN MONTHS.

IT'S A LOT FROM FOR TAX CUT.

WELL, WE STILL HAVE A LOT OF THINGS THAT WE NEED TO DO.

WE HAVE A LOT OF OUR PROJECTS.

WE HAVE THE ERP THAT WE NEED TO STILL FINANCE.

WE'RE GOING TO TALK ABOUT THAT IN FEBRUARY.

BOARD YOU HAD A PRESENTATION BY JIM PARKER.

THAT'S STILL A COSTLY THING FOR US THAT WE WANT TO MAKE SURE THAT WE PAID FOR.

WE'RE NOT USING ANYBODY.

WE DID HAVE THE ABILITY TO USE BONDING FOR WHAT WE DID, SO WE ARE USING EITHER OPERATING MONEY OR CASH RESERVES TO PAY FOR THAT IMPLEMENTATION.

OKAY. THANK YOU. THANK YOU.

ONE QUESTION. WOULD YOU HAVE YOU OBSERVED ANY DIFFERENCES IN YOUR PROCESS AND YOUR WORK AS A RESULT OF THE CHANGES IN OUR SYSTEM AND AND THE ONE COUNT OF CONSOLIDATION THAT YOU FEEL YOU GOT ALL THE VISIBILITY AND TRANSPARENCY TODAY THAT YOU HAD BEFORE OR MORE OR I MEAN I ALWAYS INVESTMENTS THAT I T TO TO IMPROVE OUR DATA AND AVAILABILITY OF INFORMATION AND I'M WONDERING WHETHER THAT'S AFFECTING YOUR WORLD IN A POSITIVE OR NEGATIVE WAY.

YOU KNOW, I THINK UNTIL YOU GO TO LIVE WITH THE NEW SYSTEM, THEN WE'LL REALLY KIND OF GET AN IDEA, YOU KNOW, THE THE IT SYSTEM THAT'S BEEN USED IN THE PAST IS BEING SOMEWHAT ANTIQUATED, I GUESS.

AND IT'S NICE TO SEE THAT IT'S COMING UP TO THE NEW VERSION, WHICH I THINK WILL KIND OF PROBABLY PROVIDE A LITTLE BIT MORE CLARITY.

WE'RE GOING TO NEXT YEAR BE SOME OF OUR RIGHT FOLKS TO KIND OF DO SOME TESTING WITHIN THAT SYSTEM AS WELL.

BUT FROM THE OVERALL PRESENTATION, INITIALLY THEY DIDN'T CHANGE A LOT OF THEIR CHARGING ACCOUNTS AND ALL THE SYSTEM AND THE PROCESS OF HOW WE MOVE FORWARD AND CHANGE A LITTLE BIT. THERE WAS SOME STREAMLINING THAT WE NOTICED.

BUT YOU KNOW, FROM OUR STANDPOINT, IT DIDN'T REALLY HAVE AS LARGE AN EFFECT ON OUR PROCESS.

TRUSTEE RITTER TO ALSO TO CLARIFY FOR THE BOARD THAT THE FINANCIALS FOR THE COLLEGE FOR THE DISTRICT, AS WE WERE BEFORE, HAS ALWAYS.

BEING A SINGLE INSTITUTION, MONEY HAS ALWAYS FLOWED INTO DALLAS COLLEGE COMMUNITY DISTRICT AS THE PARENT.

AND THEN WE DID ALLOCATIONS TO THE SEVEN COLLEGES SEPARATELY, SO THEY NEVER HAD SEPARATE FINANCIALS.

IT WAS ALWAYS JUST ONE.

SO WHICHEVER ERP WE USE, THE FINANCIALS WOULD STILL REFLECT US THE SAME.

THANK YOU. WE WERE JUST WAY AHEAD OF HER TIME, AS USUAL.

THANK YOU, MADAM CHAIR. ANY OTHER QUESTIONS FROM OTHER COMMENTS FROM OTHER TRUSTEES? I HAVE ONE.

OH, I'M SORRY. GO AHEAD. OH, I WAS.

BECAUSE I CAN REMEMBER TO REFRESH MY MEMORY, OUR LIST OF.

APPROVED. DO WE HAVE ANY MINORITY BUSINESSES? YES, WE DO. BLAYLOCK VAN IS OUR MINORITY, ONE OF OUR MINORITY BROKERS, THE BLAYLOCK VAN.

THEY'RE OUT OF NEW YORK. VAN? YES. THAT WAS.

MADAM CHAIR, IF I COULD ADD ONE THING TO THAT, JUST TO SAY WE JUST RECENTLY PUT TOGETHER A POOL OF UNDERWRITERS.

RBC WILL BE OUR LEAD UNDERWRITER, BUT WE HAD FOUR MINORITY FIRMS ON OUR LIST.

WE EMPLOYED ALL FOUR AS UNDERWRITERS.

YOU DIDN'T GO AT ALL. FOR WHAT? I'M SORRY. YOU SAID YOU EMPLOYED 4 TO 1 IN UNDERWRITING THE BOND UNDERWRITING THAT WE'RE GETTING READY TO ISSUE.

THEY UNDERWRITE THE SALE OF THE BOND.

SO, YES.

WELL, I WAS JUST GOING TO ASK, MAYBE WE HAVE A LIST AFTERWARDS OF THOSE FOR SURE.

I'D LIKE TO KNOW YOUR BACKGROUND.

WELL, ACTUALLY, THERE'S SIX AND ALL SEVEN, ALL RBC FOR MINORITY AND TWO REGIONALS.

ARE ANY OF THEM LOCAL? YES, THEY'RE ALL RBC.

IS CANADA NATIONWIDE? ALL OVER HOUSTON.

DALLAS. BUT WE PRETTY WELL TRY TO STAY WITH SOME LOCAL FIRMS, YOU KNOW, FOR SURE.

BUT I'LL GET THAT ONE QUESTION.

THAT'S WHAT I WAS THINKING ABOUT.

SO ONE LAST QUESTION.

IN TERMS OF OUR INVESTMENT STRATEGY, HOW OFTEN DO YOU MONITOR THE MARKET TO MAKE DECISIONS ON THAT?

[00:25:02]

YES, IT'S A DAILY PROCESS.

WE DIDN'T PROVIDE YOU WITH A QUARTERLY TREASURY REPORT, BUT MANAGEMENT IS HAVING CONVERSATIONS ON A DAILY BASIS.

I MEET ONE ON ONE WITH OUR TREASURY DIRECTOR WEEKLY TO HAVE AN IN-DEPTH ANALYSIS.

HE PROVIDES ME WITH A CASH FLOW ON A MONTHLY BASIS SO THAT WE MONITOR THE AMOUNT OF CASH BECAUSE, YOU KNOW, OUR CASH DOESN'T COME IN ON A REGULAR CYCLE, IF YOU WILL.

WE HAVE A TEN PAY CYCLE FOR OUR STATE APPROPRIATIONS TAXES IS, AGAIN, 60% OF OUR REVENUE, AND WE RECEIVE THAT BETWEEN DECEMBER AND FEBRUARY, SO THAT WE HAVE TO WORK CLOSELY TO MAKE SURE THAT THE CASH FLOW IS MATCHING OUR EXPENSES.

AND SO WE MEET ON A REGULAR BASIS FOR THAT.

THANK YOU. ALL RIGHT.

YES. ON THE ON THE PUBLIC FUNDS, THERE IS A STATE REQUIREMENT OF THE PUBLIC FUNDS INVESTMENT ACT THAT WE'RE ALSO REQUIRED TO REVIEW THE COMPLIANCE WITH THE COLLEGE AND THE COMPLIANCE WITH.

AND THAT WAS A CLEAN OPINION AS WELL ON THAT ATTESTATION RELATED TO THAT.

SO TO GIVE YOU SOME ADDITIONAL COMFORT PRESENT WITH THE INVESTMENTS.

THANK YOU. TRUSTEE COMPTON.

OH, ROGER.

THERE IS A SECTION.

SCANDALS FOR POST-EMPLOYMENT BENEFITS, LIABILITY AND RISKS.

AND SO YOU'RE TALKING ABOUT OPEB.

SO THEY REQUIRE SCHEDULES FOR THE POST-EMPLOYMENT ARE THOSE OF GATSBY AND IS BOTH FOR GATSBY 68 WHICH IS PENN'S PENSIONS AND GATSBY 75, WHICH IS THE POSTAL EMPLOYEE BENEFIT.

SO WE'RE REQUIRED TO GIVE SOME ADDITIONAL INFORMATION.

BUT ONE OF THE MOST IMPORTANT THINGS IS I WANTED TO READ HERE.

IT'S A TEN YEAR REQUIRED, BUT WE HAVEN'T WE HAVEN'T IMPLEMENTED WITHIN TEN YEARS.

SO THESE ARE THE TYPES OF THINGS THAT WE'RE REPORTING.

THE TYPES OF THINGS ARE JUST THE GENERAL PAYROLL INFORMATION.

THERE'S I BELIEVE THERE'S ONE.

AND I'M ABLE TO LOOK AT THE THE ONE THING IS REALLY TALKING ABOUT.

RIGHT. AND IT'S GIVING THIS DIFFERENT DIFFERENT COMPONENTS.

BUT WHENEVER YOU REALLY LOOK AT IT, IT DOESN'T GIVE YOU THAT MUCH.

THE GUTS OF THE THE BOTH OF THOSE ARE IN THE FOOTNOTES.

AND SO WHENEVER YOU LOOK INTO THE FOOTNOTES, IT TELLS YOU ALL THE MOVING PARTS, THE REQUIRED SCHEDULES.

IT'S JUST SOME LITTLE TOP SIDE THINGS THAT IT BRINGS OUT AND DISCLOSES.

OKAY, BUT YOU SAY, IF I LOOK AT FOOTNOTES, THEN I CAN TELL WHAT A G WHAT MAY I SHOW YOU REAL QUICK, BECAUSE THERE'S THERE ARE PAGES LOOKING AT HOW I AM GOING TO LOOK AT IT.

I WAS ARE YOU TRYING TO MAKE UP FOR THE LIABILITY ITSELF? YEAH, FOR THE LUMP. AND SO RIGHT HERE ON PAGE 56 OR 51, THAT IS THE EMPLOYEE RETIREMENT PLAN ITSELF.

AND THEN JUST SHORTLY, I BELIEVE IT'S 12 OR 13.

I'M NOT SURE WHETHER IT'S THE FIRST THING.

THEY SAID £40.

AND THAT'S WHAT I GAVE YOU.

SOMETHING ELSE.

OUR HEALTH CARE IS THAT WE ARE AS EMPLOYEES, THAT WE ARE GIVEN IS WHERE WE ARE ACTIVE EMPLOYEES.

AND THEN WHEN WE RETIRE, WE CARRY OVER, RIDE WITH WITH BENEFITS, WITH HEALTH BENEFITS.

THAT'S THE REASON IT'S NAME POST IS BECAUSE OF THAT.

ON THE HEALTH BENEFITS, THE ONLY THING PEOPLE RETIRE WAS IF ONLY YES, IF THEY MEET THE CRITERIA OF WORKING FOR THE FOR THE COLLEGE, FOR THE STATE OF TEXAS, ANY ANY AGENCY OR EDUCATIONAL STATE FUNDED EDUCATIONAL SYSTEM, THEN THEY'RE ELIGIBLE AFTER TEN YEARS FOR THAT.

BUT THERE'S SOME CAVEATS IN THERE.

AND. BUT LIKE NOW, I'VE REACHED RETIREMENT AGE.

ABOUT THREE YEARS AGO, I MET THE RULE OF 80, AS THEY CALL IT.

AND SO THAT MEANT THAT I WAS ELIGIBLE.

AFTER I RETIRE, THEN I'M GOING TO HAVE THESE BENEFITS THAT THE STATE IS GUARANTEED WOULD BE THERE FOR ME AS LONG AS THE LEGISLATURE APPROVES TO FUND IT. SO LET ME LET ME EXPOUND ON THIS JUST A LITTLE BIT MORE.

SO BASICALLY, TO PAT'S POINT, WE'RE REQUIRED A COURT TO GASB TO MAINTAIN OUR PERCENTAGE OF THE LIABILITY ON OUR BOOKS.

HOWEVER, BECAUSE WE ARE A POLITICAL SUBDIVISION, NOT AN AGENCY OF THE STATE OF TEXAS, THERE'S REALLY NO LEGAL CLAIM ON OUR ASSETS BECAUSE IT'S ALMOST LIKE THEY'RE TAKING MONEY FROM THEMSELVES IF THEY WERE TO DO THAT.

BUT ACCORDING TO GADSBY CALCULATIONS, BECAUSE WE DO HAVE TO RECORD OUR INDIVIDUAL FINANCIAL STATEMENTS, WE HAVE TO THEN STILL REPORT THAT LIABILITY.

BUT DALLAS COLLEGE IS NOT RESPONSIBLE FOR THAT.

[00:30:02]

SO THE ONE THING IF DOES THE ORIGINAL QUESTION IS BACK ON THE REQUIRED SCHEDULES FOR THOSE IS IT GIVES YOU THINGS LIKE IT RECOGNIZES THAT WE'RE A PROPORTIONATE SHARE OF A LARGER ENTITY.

BUT AS TISHA SAID, WE'RE NOT RESPONSIBLE FOR THAT.

THE STATE IS 100% RESPONSIBLE FOR THOSE THOSE BENEFITS, JUST AS THEY'RE RESPONSIBLE FOR OUR PENSION.

THE PENSION PAYMENTS AFTER ONE OF OUR EMPLOYEES RETIRES BECAUSE OUR PORTION OF RETIREMENT BENEFITS ARE.

THE VIEW. I'LL TAKE THAT AS WE GO.

ABSOLUTELY CORRECT.

OUR PAYROLL DEPARTMENT MAKES SURE THAT.

AND AND THERE'S A MONTHLY SHOOT UP FROM THE STATE TO US.

SO IF AT ANY POINT, YOU KNOW, THE PAYROLL OR ANYTHING WAS ANYTHING OFF AND WE HAVE TO PAY WHAT THEY SAY, THE CALCULATIONS ARE NOT JUST WHAT WE SAY THE CALCULATIONS ARE.

SO THEY KNOW EXACTLY WHAT WE'RE SUPPOSED TO CONTRIBUTE.

WE DO HAVE OUR PAYROLL DEPARTMENT WHO IS TASKED WITH MAKING SURE THAT THOSE RATES REMAIN THE SAME, SO THAT WE DO PAY IT MONTHLY WHENEVER WE ISSUE PAYROLL.

BUT THE STATE WILL DO A TRUE OF ALL.

SO WE'RE NEVER IN ARREARS ON WHAT WE OWE US.

WE WILL HAVE TO PAY THAT NOW, SO YOU BETTER MAKE SURE THAT HAPPENS EVERY MONTH.

SHE'S BEEN FANTASTIC AND JUST STAY ON SCHEDULE.

I WILL OFFER AS I DO EACH YEAR IF ANY BOARD MEMBER WANTS TO SIT DOWN WITH MY ANNUAL FINANCIAL REPORT ONE ON ONE, I WILL HAVE TO GO THROUGH ALL THE DETAILS YOU CAN PACK IN.

BUT TO TRY TO COVER IT IN THIS MEETING IS A LITTLE LONGER TO DO.

THIS IS REALLY THE AUDITOR'S PRESENTATION.

SO, MADAM CHAIR, IF I COULD INTERJECT THAT SCHEDULING.

THANK YOU SO MUCH WITH THAT.

WE DID APPRECIATE RECEIVING THE REPORT.

DID THANK YOU FOR THE PRODDING CREDIT, SUZANNE.

MR. VICE CHAIR.

AND IT IS IT IS A SCRAMBLE.

OUR TEAM APPRECIATE THE WORK THAT THE TEAM DOES WITH MCCONNELL JONES SO TRUSTEES HAVE BEEN AROUND FOR A WHILE.

MAYBE RECALL THAT THERE WAS A TIME PERIOD WHERE WE USED TO HAVE A SPECIAL LATE DECEMBER BOARD MEETING TO DO SOME OF THIS.

AND SO WE'VE ACCELERATED THAT TIMELINE OVER THE LAST FEW YEARS, BUT THAT CERTAINLY PUTS A LOT OF PRESSURE.

I APPRECIATE YOUR MENTION OF THE NIGHTS AND WEEKENDS THAT YOUR TEAM AND OUR TEAM HAVE BEEN WORKING ON THOSE.

MUCH. GOOD, JOE.

THANK YOU. THANK YOU.

THANK YOU SO MUCH. THANK YOU.

WITH THAT, WE'LL MOVE TO THE INTERNAL AUDIT PRESENTATION BY OUR AUDITOR OR INTERNAL AUDITOR.

[4.2. Internal Audit Department (IAD) - Audit Committee Report: 1st Quarter Ending November 30, 2022]

MORNING. SO FOR THIS PRESENTATION, I HAVE A FEW ENGAGEMENT UPDATES FOR YOU.

AND ALSO WE'LL BE LOOKING AT OUR ENGAGEMENT PLAN AT A GLANCE.

SO TO START OUR CONTINUOUS WITH OUR CONTINUOUS ENGAGEMENT AND AGAIN, THESE ARE LARGER AREAS OR UNITS OR PROCESSES THAT WE BREAK DOWN INTO SMALLER COMPONENTS AND PERFORM THESE REVIEWS PERIODICALLY.

IT'S EITHER QUARTERLY OR A FEW TIMES A YEAR.

THE FIRST IS FIXED ASSETS AND FIXED ASSETS OR LONG TERM TANGIBLE ASSETS, THEIR ASSETS THAT AREN'T USED GENERALLY WITHIN ANY ONE YEAR AND THEY'RE GENERALLY NOT EASILY LIQUID.

SO MEANING THAT THEY'RE NOT EASILY CONVERTED INTO CASH.

SO THESE ARE THINGS LIKE BUILDINGS AND EQUIPMENT.

GENERALLY, THEY'RE ASSETS OVER $5,000 AND WE DEPRECIATE THESE ASSETS AND WE ACCOUNT.

THAT MEANS ACCOUNTING FOR THEIR WEAR AND TEAR OVER THE COURSE OF THEIR USE.

SO FIXED ASSETS, THE PERSONNEL CONTINUE TO INTEGRATE AND CONSOLIDATE FIXED ASSET RECORDS AND UPDATES, POLICIES AND PROCEDURES TO ALIGN WITH OUR NEW SYSTEMS. AND WE REVIEWED THE INTERNAL CONTROLS HERE, NOTED NO EXCEPTIONS.

WE WILL BE CONTINUING TO REVIEW THEIR CONTROLS AND PROCEDURES AND PROCESSES FOR FIXED ASSETS THROUGHOUT THIS YEAR.

IN ADDITION, WE'LL BE DOING SOME VERIFICATIONS OF FIXED ASSETS ON A SAMPLE BASIS.

NEXT IS MORE THAT.

SURE. I MEAN, YOU SAY YOU'RE LOADING OR YOU'RE REVIEWING WHAT'S OUT THERE AND YOU'RE LOADING IT INTO THE NEW SYSTEMS AND THAT TYPE OF THING.

SO THE FIXED ASSET IS FIXED.

THE THING IS, YOU'RE AUDITING THEM, RIGHT? THAT'S IT. THAT'S THE FACILITY PRIMARILY.

OR IS IT ITV OR WHICH DEPARTMENTS ARE INVOLVED IN THE FIXED ASSET? AND COURSE, FIXED ASSETS IS PRIMARILY FINANCE AND FACILITIES ALSO HANDLES FIXED ASSETS.

[00:35:06]

AT THAT POINT, IT'S ENTERED INTO OUR SYSTEM WHEN IT'S RECEIVED AND THEN IT'S SCANNED AND THEN IT'S MOVED TO WHATEVER DEPARTMENT THAT WOULD BE USING THAT FIXED ASSET.

SO AT THE TIME IT COMES IN, IT'S RECORDED IN OUR BOOKS BECAUSE IT COMES IN THROUGH OUR PROCESS AND THEN IT'S TAGGED OR SCANNED AND MOVED TO THE APPROPRIATE DEPARTMENT. SO WE CAN CAPTURE IT AT THAT TIME IN OUR SYSTEM.

SO ALL THE BARCODES WE SEE ON STUFF LIKE AROUND HERE, THAT'S PART OF THIS PROCESS.

PART OF THAT PROCESS, YES.

THANK YOU. SURE.

IF I HAVE A QUESTION AND I KNOW YOU HAVEN'T GONE TO PROCUREMENT YET, BUT I HAVE A PROBABLY AN OVERREACHING REQUEST THAT THAT IF WE'RE CREATING A NEW A NEW SYSTEM.

I'M MORE CONCERNED THAT YOU ALSO, AS AUDIT, ARE LOOKING AT THE APPROPRIATENESS OF THE SOFTWARE THAT HAS BEEN USED IN FIXED ASSETS AS WELL AS PROCUREMENT.

THE JAGAT, I THINK IT'S CALLED IN PROCUREMENT.

I'M NOT SURE JAGAT IS THE BEST AND THE BEST TIME TO MAKE THIS DECISION.

IS THAT SO? I'M GOING TO ASK THAT YOUR REVIEW TRULY LOOK AT AND EVALUATE WITH WHATEVER HELP YOU NEED.

BUT I THINK IF YOU DON'T DO IT AS AN INDEPENDENT AUDITOR, I'M NOT SURE THAT THE FANS OF JAGTAR ARE GOING TO RAISE THEIR HAND AND SAY IT'S GREAT OR NOT LIKE IT.

SO I THINK IT'S APPROPRIATE AND AUDIT TIME RIGHT NOW FOR US TO EVALUATE THE THE SOFTWARES THAT WE USE IN BOTH FIXED ASSETS BECAUSE THERE'S SO MUCH IMPROVEMENT IN TECHNOLOGY OR ALL THE KIND OF STUFF THAT DOESN'T EVEN REQUIRE THE SAME TAGGING THAT'S FAR BETTER AND BETTER FOR SECURITY REASONS.

I REALLY WANT THAT REVIEWED NOW.

IF MY REQUEST WOULD BE FOR THE LEADERSHIP, ENSURE THAT AUDIT REVIEWED THIS.

AS WE IMPLEMENT THAT, WE DON'T IMPLEMENT AN I'M GOING TO PICK JAGUAR WHEN JAGUAR IS NOT THE RIGHT ONE TO GO WITH OUR NEW SYSTEM.

SO NOW'S THE TIME TO MAKE THAT DECISION.

I WAS THE FINANCE COMMITTEE CHAIR, AS I RECALL, DURING OUR BUDGET DISCUSSIONS LAST YEAR, WE WERE PRESENTED WITH A LIST OF LITERALLY HUNDREDS OF SOFTWARE VENDORS THAT WE'VE GOT IN PLACE FOR VARIOUS REASONS DURING OUR SEVEN SEPARATE COLLEGE DAYS.

AND THEN WE HAVE THIS COMING BUDGET CYCLE.

WE'RE GOING TO BE RECEIVING, I BELIEVE, A COMPREHENSIVE REVIEW AND ANALYSIS OF WHAT IT IS THAT WE REALLY NEED.

WHAT KIND OF COST SAVINGS CAN WE REALIZE BY DOING THINGS IN THE ERP THAT MAYBE WE DON'T NEED TO BUY THIRD PARTY VENDORS FOR AN AUDIT? SO I WOULD OFFER THAT PERHAPS THE AUDIT FUNCTION IS A PART OF THAT REVIEW AS WELL.

WELL, AND WE HAVEN'T HAD JAGUAR FOR THAT LONG, HAVE WE? NO, MA'AM. YEARS.

AND THAT WAS VETTED, ETC..

AND THEN USING THESE DIFFERENT PROCUREMENT PROCESSES WITH DIFFERENT PUBLIC ENTITIES, NOT NECESSARILY PRIVATE IN TERMS OF THE HISPANIC CHAMBER.

NONE OF THEM WERE EASY TO USE, IN MY OPINION.

RIGHT. THEY CAN BE A BIT UNWIELDY AND CUMBERSOME.

SO MY POINT IS I WANT AUDIT TO BE A MANAGEMENT AUDIT, NOT A COMPLIANCE AUDIT.

I GET I GET REALLY UPSET WHEN ALL WE DO IS COMPLY, COMPLY OR NOT, WHEN THE COMPLIANCE IS EVEN BAD IN ITSELF.

SO I WANT US TO ASK THE BIGGER QUESTION THAT THAT'S WHAT I WANT TO SEE BEING DONE.

SO WHEN YOU COME BACK WITH REPORTS, I DON'T WANT TO SEE THAT THEY COMPLY.

I WANT TO KNOW THAT IT WAS APPROPRIATE FOR THEM TO COMPLY.

AND IF IT WASN'T, WHAT WOULD HAVE BEEN BETTER? I JUST THINK MANAGEMENT AUDIT HAS AND YOU HAVE THE SKILLS TO DO THAT AS TO YOUR BACKGROUND AND YOU HAVE THE ABILITY TO LEAD A TEAM DOING THAT, NOT JUST TO. YEAH, I THINK YOU'LL SEE AS WE GET DEEPER INTO SOME OF THE SLIDES, YOU'LL SEE EVIDENCE OF SOME OF THAT AUTHORITY AND OUR TEAM HAVE BEGUN TO DO WHEN WE GET TO THE REGISTRATION ENROLLMENT PROCESS.

THAT'S SOMETHING THAT WE IDENTIFIED THAT WAS PROVIDING SOME CHALLENGES.

AND SO WE ASK OUR TEAM TO DO THAT.

SORT OF LOOK TO YOUR POINT ABOUT BOTH OF YOUR POINTS ABOUT SOME OF THE SOFTWARE ASPECTS, YOU KNOW, CLEARLY WE DO HAVE A TEAM THAT EVALUATES THOSE THAT HAS A SUBJECT MATTER EXPERTS FOR THE FOR THE NEED THAT'S REQUIRED.

BUT I THINK IT IS ABSOLUTELY AN APPROPRIATE USE OF THE AUDIT FUNCTION TO CONTINUE TO TO REVIEW AND ASSESS THAT AS WELL.

AND THERE'S A FULL VETTING PROCESS THAT GOES IN PLACE WITH ALL OF THE SOFTWARE AS A CLIENT.

[00:40:01]

BUT AS. WHEN WE LOOK AT DIFFERENT AREAS, PART OF WHAT WE DO LOOK AT IS THE SYSTEM AND THE APPROPRIATENESS OF THE SYSTEM, HOW THAT SYSTEM IS WORKING AND IS PART OF THE PROCESS THAT WE LOOK AT AND REVIEW AS WELL.

BUT WITH JACK, OUR ENTIRE PROCUREMENT SYSTEMS ARE NEW ERP SYSTEM, WHICH WAS FULLY VETTED AND IN AND THE IMPLEMENTATION IS ONGOING AND WE ARE SO AND I'LL MENTION LATER ARE INVOLVED IN THAT IMPLEMENTATION IN TERMS OF REVIEWING IT AS IT GOES FORWARD, MAKING RECOMMENDATIONS FOR ANY PROCESSES AND WORKFLOWS.

SO THAT'S OCCURRED AS WELL, I UNDERSTAND.

BUT MY POINT IS, IT DOESN'T MATTER IF JAGGER IS ONE YEAR OLD, IF IT'S NOT THE BEST TO MARRY US, THEN WE'VE GOT TO DO BEST WHAT'S BEST.

SO MY POINT IS THAT WORKDAY IS NOT A NEW SYSTEM THERE.

THERE ARE ENTITIES AROUND THE COUNTRY THAT USE WORKDAY, AND IF THEY ALREADY TO WORKDAY AND THEY ABANDONED JAGGER, WOULDN'T IT BE KIND OF A HINT? SO I WANT OUR AUDITORS LOOKING EXTERNALLY AT OTHER PEOPLE TO GET THAT KNOWLEDGE THAT HAS BEEN USED.

WE DON'T HAVE TO REINVENT THE WHEEL.

AND I JUST WANT US TO MAKE SURE THAT OUR AUDITORS FEEL LIKE THEY CAN GO OUTSIDE OUR OUR WORLD.

ABSOLUTELY. AND REALLY DO THAT, BECAUSE THAT'S THE ONLY WAY WE'RE REALLY GOING TO GET THE BENEFIT OF EXPERIENCE OF OTHERS THAT MAYBE MADE THE RIGHT OR WRONG DECISION.

THAT'S MY ONLY POINT. I'M SURE I THINK THAT'S GOING TO HAPPEN.

I KNOW TRUSTING COMPANIES AND THIS IS HELPFUL FOR ME.

CAN WE GET OR CAN I GET A QUICK REFERENCE GUIDE OF ALL OF THESE DIFFERENT SYSTEMS THAT WE'RE USING AND WHAT THOSE SYSTEMS COVER AND WHAT AREA? AND IF WE CAN JUST LOAD IT UP HERE PERMANENTLY.

SO I'LL HAVE IT TO REFER TO WHEN.

DIFFERENT MEANINGS.

BUT YEAH, BECAUSE YOU KNOW, THESE TYPE OF, YOU KNOW, ONE THING AND SURE, WE GOT ALL KIND OF STUFF GOING ON AND I NEED TO KNOW CURRENTLY WHAT WE USE, WHAT THE SOFTWARE PACKAGE IS.

SO EVERYBODY DOES.

SURE, SURE. YEAH, THAT'S RUSTY RITTER INDICATED WE'RE ENDEAVORING TO SIMPLE FIND MUCH OF THAT AND SO WE'LL WE'LL COMPILE IT.

SO IT MAY BE EASY.

SORRY, BUT MS..

COMPTON READ MY MIND ACTUALLY WAS IN A MEETING THIS WEEK WITH THE WITH OUR CIO, JIM PARKER, WHO IS GOING TO PREPARE A ONE PAGE, IF POSSIBLE, DIAGRAM THAT WILL SHOW US. WE'RE TALKING ABOUT A LOT OF THINGS AROUND HERE.

WE'RE TALKING ABOUT ERP, WE'RE TALKING ABOUT A NEW LMS, WHICH IS LEARNING MANAGEMENT SYSTEM, VARIOUS PLATFORMS THAT ARE UTILIZED IN THE OPERATIONS OF DALLAS COLLEGE.

AS WE IMPLEMENT WORKDAY, THE NEW ERP, IT WILL DO AWAY WITH THE NECESSITY FOR SOME OF THE PROGRAMS THAT WE'RE CURRENTLY USING.

THERE WAS MENTION OF JAGGER AND SOME OTHERS.

WE WE WANT TO GIVE YOU A SNAPSHOT OF THAT BECAUSE IT'S HARD FOR ANYBODY TO UNDERSTAND ALL OF THAT, THE COMPLEXITIES OF ALL THAT AND HOW THEY INTERRELATE TO ONE ANOTHER.

SO THAT'S A COMING ATTRACTION.

I WAS GOING TO SAY FOR FUTURE BOARD MEETING, WE PROMISE YOU THAT'S COMING.

I'M TASKED WITH COMING UP WITH THAT EXPLANATION AS SIMPLY AS POSSIBLE.

SO I DON'T WANT TO CONFLATE THE ISSUES.

I THINK WE WILL LEARN AND WE WILL LEVERAGE, IN FACT, THE SERVICES OF INTERNAL AUDIT TO DO A MANAGEMENT REVIEW OF THE SUITABILITY OF SOME OF THESE SOFTWARE PLATFORMS THAT WE'RE UTILIZING OR WILL BE UTILIZING IN THE FUTURE AS WELL.

THANK YOU. VERY GOOD.

THE NEXT IS PROCUREMENT.

WE REVIEWED AND DOCUMENTED PROCESSES FROM END TO END FOR NON CONTRACT PURCHASES AND ALSO FOR CPI.

CONTRACT PURCHASES AND CPI IS OUR CONTRACT PRICING INFORMATION AND THE ACRONYMS. AWESOME. JUST THE SO.

SHE IS EXCELLENT.

WE HAVE MORE. CARTER HAS QUESTIONS ABOUT HIS PLAY.

PRICING INFORMATION.

SO IT'S WHERE THE COLLEGE HAS PREEXISTING CONTRACTS.

WE FOUND THAT THERE WERE SIGNIFICANT OPPORTUNITIES TO IMPROVE AND STREAMLINE PROCESSES, AND WE WILL BE DISCUSSING THOSE RECOMMENDATIONS AT THE END OF THE AUDIT. WE HAVE AN EXIT CONFERENCE.

SOMETIMES THE TIMING OF THAT CONFERENCE IS BEFORE OR AFTER OUR PRESENTATION, BUT OUR EXIT CONFERENCE WITH MCDERMOTT LEADERSHIP AND STAFF IS NEXT.

ALL OF OUR RECOMMENDATIONS FOR STREAMLINING AND IMPROVING PROCESSES ON THAT.

MR. ROBERTSON SO THE PROCESS IS ESSENTIALLY FOR PAYMENT.

[00:45:03]

SHE SAID IT WAS JUST NOT SUSTAINABLE FOR LONG TERM AND HER PASSION GOING OFF OF WHAT WE'RE SUPPOSED TO PAY HER, I WON'T SAY PERFECT, BUT THAT 30 DAY RULE APPLIES TO EVERYBODY WE DEAL WITH, AND THERE ARE ISSUES WE'VE GOT TO MAKE SURE THAT WE'RE PAYING.

THERE ARE APPROVAL PROCESSES, ARE THE SUBMITTING OF INVOICES, WHICH WE'VE BEEN TRYING FOR THE LAST FIVE YEARS IT TO GO TO ONE PLACE AND THEY STILL END UP DISTRIBUTED ALL OVER THE COLLEGE. SO AS WE DO, BUT WE KNOW WHO THOSE ARE AND FISH AND WHOEVER WE CAN WORK WITH THEM ON MAKING SURE THAT THEY'RE GOING THROUGH THE RIGHT PROCESS TO GET PAID.

SO YOU'RE SAYING WE ALREADY HAVE A POLICY THAT THEY GET PAID TO THE EXTENT POSSIBLE, TRY TO GET OUR VENDORS PAID WITHIN 30 DAYS.

THAT'S A PROCEDURE WE HAVE IS THAT EVERYBODY IS IN ON 30 DAY PAY OUR CENTER.

SO CAN YOU GIVE US CAN YOU LOOK AT HOW WE PAID AND THE AVERAGE AMOUNT IT'S TAKEN TO PAY? OKAY. THANK YOU. YES, I APPRECIATE THAT.

THIS DIALOG BETWEEN THE PROCUREMENT DEPARTMENT AND I.T IS CONTINUALLY.

YOU GUYS GOT MORE BACK AND FORTH TO DO.

THAT'S WHY I UNDERSTAND YOUR PRESENTATION.

WHEN THAT'S COMPLETED, I THINK IT WOULD BE VERY APPROPRIATE FOR THE BOARD TO GET A COMPREHENSIVE OVERVIEW OF PROCUREMENT.

I CAN'T REMEMBER THE LAST TIME WE HAD ONE, AND WE'RE GETTING READY TO SPEND HUNDREDS AND HUNDREDS OF MILLIONS OF DOLLARS ON THE PROGRAM AND SPENT HUNDREDS OF MILLIONS OF DOLLARS A YEAR ANYWAY. BUT I JUST THINK, AND ESPECIALLY IN LIGHT OF ALL THE REDESIGN OF IT SYSTEMS AND OTHER THINGS ARE GOING ON JUST FROM BEGINNING TO END.

HOW DOES IT WORK? SELECTION COMMITTEE IS HOW THEY SELECTED.

WHAT'S THE ROLE, WHERE IS THE BOARD PLUG AND ALL OF THAT.

AND I WAS JUST PUT WITH THAT CHANCE FOR YOUR CONSIDERATION IN THE AGENDA.

WE'LL DO THAT. PROCUREMENT IS AN AREA THAT WE ENGAGE A LOT OF DIALOG AND CONVERSATION ABOUT AND DISCUSSION CAN CERTAINLY ATTEST TO.

AND SO WE ARE ENDEAVORING TO ADD SOME IMPROVEMENTS THERE AND BUT WE WILL COME BACK AND KIND OF GO THROUGH THE A TO Z OF THOSE PROCESSES.

WHAT THAT LOOKS LIKE. I WOULD THINK THAT A DIALOG LIKE THAT TO CONTEMPLATE OUR POLICIES AND PROCEDURES AND THERE MAY BE THINGS IN THAT AREA THAT WE WOULD WANT TO BRING BACK AT THE SAME TIME, TAKE A LOOK AT ALL OF US.

THANK YOU. LOOK INTO OUR AUDITS AND SPECIAL REVIEWS.

DUAL CREDIT THAT IS IN PROGRESS.

WE'LL BE REVIEWING THE ACHIEVEMENT OF GOALS AND OBJECTIVES.

OUR PARTNERSHIPS IN SOME COMPLIANCE AREAS, RISKS AND PROCEDURES AND PROCESSES AND CONTROLS THAT ARE IN PLACE TO MITIGATE THOSE RISKS.

THE INTERNATIONAL STUDENT OFFICE.

THAT REVIEW IS ALSO IN PROGRESS.

AGAIN, WE'LL BE REVIEWING THE ACHIEVEMENT OF GOALS AND OBJECTIVES, WILL BE LOOKING AT COMPLIANCE OR SOME OF THOSE AREAS.

THERE ARE MANY REQUIREMENTS IN TERMS OF INTERNATIONAL STUDENTS AND ALSO, AGAIN, RISK IN PROCESSES AND PROCEDURES AND CONTROLS.

TO FLAVOR LORI ABOUT WHAT THE COMPLIANCE ISSUES ARE IN THE INTERNATIONAL STUDENTS.

JUST REAL QUICK, WHAT WHAT ARE YOU LOOKING AT? GENERALLY WITH INTERNATIONAL STUDENTS, THERE ARE CERTAIN REQUIREMENTS THAT THEY HAVE FOR THEIR VISA AND CERTAIN THINGS THAT THEY NEED TO DO.

AND SO WE'LL BE LOOKING AT THOSE TYPES OF THINGS FOR MAINLY FOR VISA REQUIREMENTS, MAKING SURE THAT THE COLLEGE IS PROPERLY REPORTING ANY ISSUES THAT THEY COME ACROSS WITH VISA, MAKING SURE THAT THE STUDENT IS MEETING THEIR IN-STATE REQUIREMENTS, THEIR REQUIREMENTS FOR CERTAIN CLASSES THAT THEY NEED TO TAKE, OR A NUMBER OF CLASSES THAT NEED TO TAKE.

TRUSTEE POINT DO WE HAVE A REQUIREMENT FROM? I GUESS, FOR NATIONAL SECURITY PURPOSES.

DO WE HAVE A REQUIREMENT TO REPORT ANY INTERNATIONAL STUDENTS THAT WE HAVE? SO WE DO REPORT INTERNATIONAL STUDENTS IN TERMS OF THOSE THAT ARE ATTENDING AND THOSE THAT WILL VISAS FOR HOMELAND SECURITY.

THERE IS A SYSTEM CALLED CIVICS.

YES. AND THAT'S WHERE IT GOES DIRECTLY TO THE FEDERAL GOVERNMENT AND ALL INFORMATION ABOUT ANY INTERNATIONAL STUDENT THAT WE WOULD ISSUE AN I-20, WHICH IS WHAT THEY NEED TO GET A VISA TO ATTEND DALLAS COLLEGE.

ALL THE INFORMATION IS IT'S SUBMITTED THROUGH THAT.

AND THAT'S ONE OF THE THINGS I THINK LAURIE IS LOOKING AT TO MAKE SURE THAT WE ARE FOLLOWING THE PROCESSES.

I THINK TODAY WE HAD SOMETHING HAPPEN WITH ONE OF OUR STUDENTS AND WE DIDN'T REPORT THAT THEY WERE A STUDENT.

SO AND I THINK ALL OF THAT HAPPENED AS A RESULT OF 911.

CORRECT. IN TERMS OF NEW VISA REQUIREMENTS AND WHAT THE COLLEGES AND UNIVERSITIES HAD TO DO TO REPORT WHO THEY WERE.

[00:50:06]

AND WE HAD AT THE TIME WE HAD A NUMBER OF STUDENTS THAT WERE IN PROCESS.

WE HAD 55 STUDENTS COME IN AT THE TIME FROM IMPACTED COUNTRIES.

AND SO AT THAT TIME WE WERE HAVING TO DOUBLE CHECK AND REVIEW AND MAKE SURE WE KNEW WHO EVERYBODY WAS AND WHERE THEY WERE, THE PROCESS.

THE NEXT AREA IS REGISTRATION AND ENROLLMENT PROCESS REVIEW.

SO WE'VE COMPLETED PHASE ONE AND ISSUED AN INTERIM REPORT.

THIS FOCUSED MAINLY ON THE WEBSITE AND THE EASE OF NAVIGATION, AND WE FOUND SOME ISSUES AND CONCERNS THERE WITH NAVIGATION, EASE OF FINDING THINGS. WE HAVE COMMUNICATED THOSE RESULTS.

WE'VE WORKED WITH THE CHIEF MARKETING OFFICER, DR.

WILLIAMS, AND HE WILL BE CREATING A CROSS-FUNCTIONAL TEAM TO ADDRESS MANY OF THESE ISSUES THAT WE FOUND ON THE WEBSITE.

SO THE CROSS-FUNCTIONAL TEAM, I MEAN, THIS WAS AN AREA OF MAJOR CONCERN DURING FALL ENROLLMENT.

I GOT LOTS OF CONSTITUENT COMPLAINTS AND THEN WE HAVE A TEAM OR WHAT'S WHAT'S THE LATEST ON THIS AREA? WE DO JUST MAY WANT TO SPEAK TO THAT AS WELL.

BUT THIS SPECIFICALLY ON SOME OF THE SPECIFIC THINGS RELATED TO THE WEBSITE THAT BRAD AND THE MARKETING TEAM WERE HUSTLING ON.

YEAH. SO MY UNDERSTANDING IS THAT THE FIRST PART THAT SHE THAT INTERNAL AUDIT HAS COMPLETED, THEY'VE LOOKED AT THE PAVEMENT PIECE ANY ANY THE INFORMATION ABOUT PAVEMENT EASE OF FUNDING, HOW WE WILL GO ABOUT PAYING THINGS RELATED TO SCHOLARSHIPS, HOW WOULD YOU GO ABOUT APPLYING SCHOLARSHIP TO YOUR ACCOUNT ETC.

ETC.. SO THAT'S THE PIECE THAT THEY'VE COMPLETED THUS FAR.

AND DR.

WILLIAMS IS WORKING WITH BASICALLY THE REPORT TO MAKE SURE THAT IT'S EASY TO NAVIGATE THE WEBSITE, TO BE ABLE TO FIND WHERE THE INFORMATION IS FOR THE PAYMENT PIECE.

I THINK SHE IS WORKING ON A SECOND PART OF THIS REGISTRATION AND ENROLLMENT PROCESS REVIEW, AND WE'RE WORKING ON ACTUALLY PUTTING TOGETHER A FOCUS GROUP OF STUDENTS THAT SHE WILL BE SPEAKING TO TO GET THEIR EXPERIENCE WITH THE ENROLLMENT PROCESS TO MAKE SURE THAT WE GET THE STUDENT VOICE WHEN WE TRY TO SERVE AND MAKE SURE THAT THAT'S TAKEN INTO CONSIDERATION IN THE AUDIT REPORT.

THANK YOU. THAT WAS GOING TO BE A QUESTION I WAS GOING TO ASK.

ARE THE STUDENTS INVOLVED IN REVIEWING WHAT'S COMING IN PLACE? AND I WOULD ENCOURAGE MY COLLEAGUES WITH THE FELLOW FELLOW TRUSTEES TO REGISTER FOR ONE CLASS OR AT LEAST TRY TO REGISTER TO.

SO YOU CAN SEE I'VE THOUGHT ABOUT DOING THAT.

WELL, I ENCOURAGE YOU TO BECAUSE I'VE DONE IT A COUPLE OF TIMES.

AND WHAT WAS IT LIKE? IT'S NOT EASY. ONE OF THE ONE OF THEM, WHEN I WAS ORIGINALLY WORKING AT DALLAS COLLEGE, WHO TOOK A COURSE OF THE CENTER, FOR SOME REASON I HAD TWO ID NUMBERS, SO IT TOOK TWO OR THREE PEOPLE IN DR.

JOSEPHS SHOP TO HELP ME WORK THROUGH THAT.

THEN ANOTHER TIME WHEN THAT WAS RESOLVED, I TRIED TO ENROLL AND I COULDN'T.

SO I WOULD INVITE YOU ALL TO ENROLL FOR A CLASS AND SHARE YOUR EXPERIENCE WITH US.

I'LL MAKE SURE THAT I GET YOUR POINTS AS WELL.

AND THEN SOME OF THESE SOME OF THESE INSTANCES, LIKE A TRUSTEE, WAS REFERENCING A COUPLE SPECIFICALLY CONSTITUENT CONCERNS THAT CAME IN TO TO SOMETIMES UNIQUE OR SPECIFIC SCHOLARSHIPS THAT WE DIDN'T HAVE A GREAT WAY THAT WAS EASILY TO IDENTIFY HOW TO APPLY THOSE, HOW TO PROCESS THOSE.

AND SO THIS REVIEW AND THE WORK THAT CROSS-FUNCTIONAL TEAM IS GOING TO HELP US ADDRESS SOME OF THOSE THINGS.

AND THEN OF COURSE, THE OTHER PART IS, IS WORKDAY OR HAS AS WE MOVE TO THE STUDENT SERVICES SIDE OF THAT, THAT SHOULD HELP SIMPLIFY ALL THOSE THINGS.

AND I WOULD HOPE YOU WOULD GET RID OF PHI AND SM TWO, THREE, FOUR AND WE DON'T UNDERSTAND THOSE ACRONYMS. I WANT A BUSINESS COURSE. LET ME GO TO THREE OR FOUR DIFFERENT FILES AND STUFF LIKE THAT.

YEAH. SO I TOOK THE COURSE AND SIGNED UP.

FOR COURSE, I FINALLY GAVE UP AND JUST CAME IN PERSON AND HAD THEM HELP ME BECAUSE I COULD NOT NAVIGATE IT.

AS SHE POINTED OUT, IT'S JUST TOO MANY INITIALS THERE THAT DON'T MEAN ANYTHING TO SOMEBODY WHO DOESN'T HAVE SOME SORT OF LIST EXPLAINING WHAT THOSE ARE.

WELL, IT IS GREAT FOR THOSE THAT INTERNING FOR THE SYSTEM.

IT MAKES PERFECT SENSE TO Y'ALL, BUT THAT MAKES SENSE.

THAT'S WHO THE PUBLIC IS.

THE PAYMENT PIECES AND ALL THOSE PIECES OF THE REGISTRATION, CERTAIN REGISTRATION PIECES.

BUT IN PHASE TWO, WE'RE GOING TO LOOK DO MORE DETAILED TESTING AND REVIEW OF THE PROCESSES IN TERMS OF APPLICATION REGISTRATION AND

[00:55:02]

SO WE'LL BE EXPANDING THAT A GREAT DEAL IN BASED.

THAT'S A GREAT TECHNIQUE.

SECRET SHOPPER ARE YOU USING THAT FOR YOUR PERFORMANCE AUDITS INTERNALLY? WE WE HAVE NOT PLANNED TO, BUT I THINK WITH HOW WE'VE APPROACHED IT WITH THIS PARTICULAR PIECE, I THINK IT WILL BE HELPFUL IF WE FOUND GOOD RESULTS IN THE PAST FROM DOING THOSE EXERCISES.

THERE ARE OTHER SERVICES AND DUTIES AND SPECIAL PROJECTS ARE BROUGHT ONLINE.

WE HAVE THREE REPORTS THIS QUARTER.

AGAIN, NO INCIDENTS OF FRAUD, WASTE AND ABUSE HAVE BEEN IDENTIFIED OR SUBSTANTIATED.

WE CONTINUE TO RESEARCH A NEW SOLUTION AND THAT IS IN PROGRESS.

WE HAVE DEMONSTRATIONS PLANNED AND WILL BE IDENTIFYING A FINAL SOLUTION.

OBVIOUSLY BRINGING THAT TO DR.

LONDON AND TO LEADERSHIP.

AND WE EXPECT TO IDENTIFY THAT SOLUTION BY THE END.

EXPORT BY THE END OF THIS THIRD QUARTER.

SORRY, SPECIAL INVESTIGATIONS AND REVIEWS.

WE HAD ONE COMPLETED.

THERE'S ONE IN PROGRESS.

ANY ISSUES THAT WE FIND IN A SPECIAL INVESTIGATION OR REPORTED TO THE APPROPRIATE DEPARTMENT FOR THE APPROPRIATE ACTION? WHAT IS THE ONE THAT YOU HAVE IN PRACTICE? CURRENTLY, WE HAD A A WE'RE LOOKING INTO THE WE HAD A CONCERN EXPRESSED ABOUT DALLAS PROMISE AND IT WAS NOT SUBSTANTIATED.

THERE WASN'T MUCH INFORMATION PROVIDED.

BUT FOR THAT, WE'RE LOOKING AT JUST THE PROCESSES THERE AND MAKING LOOKING AT THOSE PROCESSES AND PROCEDURES.

YOU SAID THAT THAT WAS A LITTLE BACK THAT WAS THERE WAS A CONCERN THAT WE CAME ACROSS OUR HOTLINE THAT SAID THERE WASN'T MUCH INFORMATION, BUT IT DID SAY THAT THERE WAS A CONCERN ABOUT DALLAS PROMISE AND AWARD AND AND THOSE AWARDS AND STUDENTS.

SO WHAT ARE THE ISSUES THAT WE ARE HAVING WITH THE FRAUD HOTLINE, WHICH IS ONE OF THE REASONS WE'RE LOOKING FOR A NEW SOLUTION? IS THAT THE WAY IT'S SET UP THAT PEOPLE CAN REPORT THINGS, BUT WE DON'T HAVE ANY MECHANISM TO GO BACK TO THAT INDIVIDUAL AND SAY, CAN YOU PROVIDE US MORE INFORMATION WHERE YOU CAN PROVIDE US MORE DETAIL? BUT WE DO TAKE EVERYTHING THAT COMES ACROSS THE LINE SERIOUSLY.

SO IN INSTANCES WHERE THERE'S NOT A LOT OF INFORMATION, WE STILL LOOK AT THE PROCESS AND THE CONTROLS JUST TO MAKE SURE THAT THOSE ARE SOUND, THAT THERE'S NO OPPORTUNITY THERE TO CIRCUMVENT OR MANIPULATE CONTROLS IN ANY WAY.

SO IT'S IT'S IT'S AN INVESTIGATION, THE SPECIAL REVIEW, BUT THERE WASN'T A LOT OF INFORMATION PROVIDED.

SO WE'RE LOOKING AT MORE OF THE PROCESSES AND THE PROCEDURES INVOLVED.

LET ME ASK A QUESTION LIKE THIS.

YOU SAID THERE WAS CONCERN ABOUT HOW AWARDS WERE BEING MADE.

THEY DIDN'T SAY WHAT THE CONCERN WAS.

THEY DID NOT. THEY DID NOT.

AND THAT'S ONE OF AGAIN, ONE OF THE CHALLENGES WITH THE FRAUD.

BUT WE WE AND IT WAS REPORTED ANONYMOUSLY WAS ANOTHER ISSUE.

BUT WE STILL, WITH ANY CONCERN THAT WE DID LOOK INTO IT AND TO THE EXTENT THAT WE CAN, WOULD YOU BE ABLE TO WITH A TECHNOLOGY ASSIGNED SO SOMEBODY CALLS IN TO THE HOTLINE, WOULD YOU BE ABLE TO ASSIGN AN ANONYMOUS EMAIL ADDRESS OF SOME SORT THAT WOULD ALLOW THAT PERSON TO TO GO BACK AND FURTHER EXPLAIN? NOT WITH THE CURRENT SYSTEM AND TECHNOLOGY, BUT THAT WOULD BE A WAY OF DOING.

AND THAT'S ONE OF THE REASONS THAT WE'RE LOOKING FOR A NEW SOLUTION SO THAT WE CAN HAVE THIS ABILITY TO REACH BACK OUT TO THAT PERSON AND MAYBE GET ADDITIONAL ENGINEERS TO BE ABLE TO DO THAT.

IDENTIFYING THEM AS AN INDIVIDUAL, BUT IT WOULD GIVE THEM A VEHICLE TO FURTHER FOR YOU TO COMMUNICATE ON THAT EMAIL ADDRESS.

YES, PLEASE CHECK THIS EMAIL ADDRESS.

IT DOES NOT IDENTIFY YOU IN SUCH.

BUT WHAT WAS YOUR REAL PROBLEM? THAT'S EXACTLY WHAT THE SOLUTION THAT WE'RE LOOKING TO DO.

WE CANNOT DO THAT WITH THE CURRENT SYSTEM THAT WE HAVE.

I'M SURE YOU HAVE TWO POINTS, BUT YOU HAVE ONE.

I UNDERSTAND THAT IT'S ANOMALOUS.

I THINK THAT'S WHAT IT SHOULD BE.

BUT SOMETHING COMES INTO THAT FROM THE HOTLINE.

UNLESS WE AS A BOARD ASK SPECIFIC QUESTIONS.

[01:00:03]

I MEAN, DO WE EVER KNOW? I MEAN, IS THERE A PROCESS FOR INFORMING? MOST OF WHAT YOU SEE THROUGH THAT? WELL, I DON'T KNOW THAT WE'VE DONE THE DETAIL, BUT IN THESE PRESENTATIONS IS WHERE WE TRY TO ADDRESS ANY OF THE SPECIFICS THAT HAVE COME UP THAT LAURIE, YOU ALL HANDLE BOTH INTERNALLY.

BUT MY QUESTION IS, WILL THE BOARD EVER KNOW WHAT THE CONCERNS, WHAT THE ISSUE WAS OR TO DETAIL? I GUESS I'LL START WITH THIS AND THEN ON THE BOARD, I WILL ALSO SAY THAT THE FLOOD HOTLINE.

SOMETIMES PEOPLE LEAVE THINGS ON THERE THAT DON'T HAVE ANYTHING TO DO WITH THE INTENDED PURPOSE OF IT.

RIGHT. AND SO THEN WE'RE TRYING TO WORK THROUGH SOME OF THE SPECIFICS OF THAT.

BUT LAURIE YEAH, YOU WEREN'T GOING TO SPEAK TO ONE WEEK AT THOSE.

AND SO IN THE REPORTS I REPORT, WHAT WERE THE NUMBER OF REPORTS THAT WE RECEIVED? IF THERE ARE THINGS THAT ARE SIGNIFICANT OR CRITICAL, WILL INVESTIGATE THOSE AND THOSE, WE CAN CERTAINLY LET THE BOARD KNOW.

THE FRAUD HOTLINE.

ONE OF THE CHALLENGES IS THAT PEOPLE SEE THIS AS AN AVENUE TO REPORT ANYTHING OR THEIR.

SO SOME OF THE THINGS THAT ARE PRESENTED IN THE FRONT HOTLINE CERTAINLY AREN'T NECESSARILY BROAD.

AND LET ME SAY THIS.

I UNDERSTAND ALL THAT.

BUT ONE OF THE THINGS EVER SINCE I'VE BEEN SITTING ON THIS BOARD THAT I CONSISTENTLY HEAR IS THAT THEY DON'T TELL YOU OUT ANYTHING.

YOU DIDN'T KNOW THAT THIS WAS GOING ON OR, YOU KNOW, BUT WE SET THAT FROM THAT HOTLINE UP FOR SPECIFIC PURPOSE.

BUT IF IT'S NOT PROVIDING INFORMATION TO THE PEOPLE WHO MAKE POLICIES OR ADDRESS CONCERNS ARE IN A POSITION TO ADDRESS AN ISSUE OR WHATEVER, IF WE NEVER KNOW, THEN.

YOU KNOW WHAT I'M SAYING? WELL, SURE, BUT.

BUT I WOULD.

I COULD TELL. I WOULD FEEL LIKE I'M THE DUMBEST PERSON IN THE ROOM.

NO, NO. BUT.

BUT WHAT I WOULD OFFER IS THAT THAT'S EXACTLY WHAT THIS IS DESIGNED TO DO.

WHAT LORI AND TEAM DO IN BRINGING THIS HERE TO THE AUDIT COMMITTEE TO MAKE SURE THAT THE BOARD IS AWARE THAT WHERE THOSE HAVE COME IN, THAT THEY HAVE BEEN ADDRESSED, THEY HAVE BEEN IDENTIFIED, THEY HAVE BEEN CONSIDERED AND AND CERTAINLY REPORT THAT BACK OUT TO THE BOARD.

THE OTHER PART THAT WE'VE TALKED ABOUT PREVIOUSLY AND THE TRUSTEE BOARD WAS JUST BRINGING UP THE FRAUD HOTLINE IS AN IMPERFECT SOLUTION BECAUSE YOU DO WANT TO PROVIDE SOMETHING THAT PEOPLE CAN FEEL LIKE WHAT, THAT THEY'RE PROVIDING INFORMATION AND THAT THEY'RE ANONYMOUS, THAT THEY DON'T HAVE CONCERN ABOUT THAT.

SO WE WANT TO PROTECT THE INTEGRITY OF THAT.

AND THIS NEW SYSTEM THAT SHE'S LOOKING AT WILL ALLOW THAT AND ALLOW HER AND TEAM TO DO FOLLOW UP SO WE CAN GET SOME MORE DETAILS OUT.

THAT'S A CHALLENGE OFTENTIMES IS TRYING TO GET TO SOME OF THOSE DETAILS AFTER THAT INITIAL CALL OR WHATEVER ELSE.

AND AGAIN, IF IT'S A SIGNIFICANT ISSUE, THEN I WILL CERTAINLY BRING THAT FORWARD AND LET EVERYONE.

BUT FOR THE ISSUES THAT WE'VE RECEIVED THERE GENERALLY AT THIS POINT, ISSUES LIKE THE ONE I MENTIONED WHERE SOMEONE WILL MAKE A COMMENT.

AND WE STILL, OF COURSE, ARE OBLIGATED AND WANT TO LOOK INTO THAT TO MAKE SURE THAT NOTHING IS HAPPENING.

BUT WE HAVE A LIMITED INFORMATION AND WE DON'T WANT TO MAKE AN ACCUSATION ABOUT SOMETHING THAT'S OCCURRING WITH THIS LIMITED INFORMATION THAT THAT WE'RE GETTING. AND SOMETIMES PEOPLE ARE.

THE MAIN THING IS THAT IT'S ON THE RECORD AND YOU UNDERSTAND WHAT I'M SAYING AND WHAT I'M ASKING AND WHAT MY CONCERN.

SURE. AND IF IF WE NEED TO IN IN WHAT LAW REPORTS AND BRINGS THE OUT OF COMMITTEE, IF THERE'S DIFFERENT DETAIL THAT THAT WE NEED TO BE PROVIDING IN THIS IN THIS FORUM, IN THIS FORUM.

AND CERTAINLY WE'LL DO THAT.

CERTAINLY. AND THE LAST ITEM IS WORKDAY IMPLEMENTATION.

AND I MENTIONED THIS BEFORE.

WE CONTINUE TO PARTICIPATE IN THAT IMPLEMENTATION, ATTEND MEETINGS AND PROVIDE RECOMMENDATIONS ON WORKFLOW AND WORKFLOWS AND CONTROLS AS NECESSARY. THE LAST ITEM IS SORRY, THIS IS HARD TO READ.

IT'S THE AUDIT PLAN AND IT'S AT A GLANCE.

SO IT'S A QUICK VIEW OF THE ENGAGEMENTS THAT WE'LL BE DOING, THE TIME FRAME AND THE STATUS OF THOSE.

[01:05:02]

WE LOOK AT OPERATIONAL ASPECTS, LOOKING AT EFFICIENCY AND EFFECTIVENESS AND PROCESSES, BUT WE ALSO LOOK AT PERFORMANCE OR GOALS AND OBJECTIVES BEING ACHIEVED, OUR STRATEGIES BEING IMPLEMENTED.

ARE THERE STRATEGIC PRIORITIES THAT ARE BEING ACHIEVED? THOSE TYPES OF THINGS, WE LOOK AT IT FROM BOTH PERSPECTIVES.

AND THEN OF COURSE, WE ALSO LOOK AT AN INTERNAL CONTROLS AS NECESSARY AND COMPLIANCE AS WELL, BECAUSE WE WANT TO MAKE SURE THAT CONTROLS ARE IN PLACE AND THAT THE COLLEGE, OF COURSE, IS MEETING ITS COMPLIANCE REQUIREMENTS.

SO THIS IS JUST A CHART TO LOOK AT, AT A GLANCE OF WHAT'S COMING UP AND WHAT WE'RE WORKING ON.

THE DIVERSITY, EQUITY AND INCLUSION ON THE THIRD QUARTER.

SO THAT'S WHEN THAT THIRD QUARTER STARTS IN MARCH, MARCH. AND WHEN YOU DO THAT AUDIT, WHAT EXACTLY ARE YOU GOING? OKAY. SO WE'RE GOING TO BE LOOKING THERE.

THAT'S ONE OF THOSE THAT WILL BE LOOKING AT THE GOALS AND OBJECTIVES OF THAT AREA, HOW THEY'RE IMPLEMENTING THOSE GOALS AND OBJECTIVES, WHAT ARE THE WHAT TYPES OF THINGS ARE THEY DOING ARE IN ARE THEY MEETING THEIR GOALS AND OBJECTIVES? NOT SO MUCH LOOKING FOR THAT AREA AS THE PROCESSES AND PROCEDURES, BUT WE MAY LOOK AT THAT IN IN SMALL WAY IN TERMS OF HOW THEY'RE IMPLEMENTING THEIR OBJECTIVES AND ACHIEVING THEIR OBJECTIVES AND GOALS OR IF THEY EVEN HAVE THEM.

THAT'S THAT'S PART OF WHAT WE LOOK AT AND HAVE AS WELL.

YES. ON THIS PARTICULAR DEPARTMENT, DO YOU HAVE A COPY OF THE.

DON'T BECAUSE I HAVE SOME I HAVE SOME OF THE THE DIRECTIONALITY OF BUT NOT SOME OF THE SPECIFICS IN THE METRICS FOR THAT AREA.

AND TO BE FAIR, WE DON'T HAVE THAT FOR FOR MANY OF OUR AS WE'RE BUILDING OUT WHAT I CALL THAT BLUE SHEET BEFORE, WHERE OUR KPIS AND OUR METRICS DOWN TO SOME OF THE DEPARTMENTAL GOALS, THERE ARE MANY OF THOSE THAT ARE STILL IN PROGRESS.

TRUST YOU GUYS. YEAH. THANK YOU.

I WANTED TO ASK IF THE STANDARDS THAT YOU'RE MEASURING IS IS SOMETHING THAT WE COME UP WITH THE STANDARDS FOR THAT DEPARTMENT OR THAT FUNCTION, OR IS THERE SOME SORT OF NATIONAL STANDARDIZATION FORMULA? IT DEPENDS ON THE DEPARTMENT AND SOME DEPARTMENTS.

THERE MAY BE A NATIONAL FORM OR INDUSTRY TYPE STANDARD, BUT SO WE'LL LOOK FOR THAT AND LOOK AT THAT AS WELL.

BUT WE ALSO LOOK AT THE DEPARTMENT ITSELF.

WHAT HAVE THEY DESIGNED AND DEVELOPED FOR THEIR SPECIFIC DEPARTMENT? TRUST YOU. VERY GOOD PRESENTATION.

THANK YOU. IT STRIKES ME AS YOU'RE GOING THROUGH SOME OF THESE THAT INFORMATION THAT YOU DEVELOP IN THE CONTEXT OF YOUR PERFORMANCE AUDITS IN PARTICULAR COULD HELP INFORM THE DEVELOPMENT OF KPIS IN THESE DEPARTMENTS AND AND EVEN GETTING A CLEAN AUDIT.

I MEAN, HAVING A POSITIVE RESULT FROM THE PERFORMANCE AUDIT PROCESS COULD IN FACT POTENTIALLY BE A KPI ITSELF.

AND I JUST THROW THAT OUT THERE FOR CONSIDERATION.

SECOND THING IS, IS THAT IT'S KIND OF A LAUNDRY LIST THAT YOU GOT THERE ACROSS MULTIPLE DEPARTMENTS OF VARIOUS TYPES OF AUDITS.

YOU'RE DOING PROGRAMMATIC AUDITS, WHICH IS WHICH IS PERFECTLY FINE.

AND IT MIGHT IT WOULD HELP ME PERHAPS TO GROUP SOME OF THESE AUDITS INTO THE MAJOR FUNCTIONS, ORGANIZATIONAL STRUCTURES OF THE COLLEGE, FOR EXAMPLE, YOU KNOW, YOU DO A BUNCH OF AUDITS IN THE PERVIOUS AREA, ACADEMIC RELATED, RIGHT? DR. JOSEPH STUDENT SERVICES AREA.

I SEE WE HAVE AN AUDIT COMING UP ON SUCCESS COACHES.

WELL, SUCCESS COACHES COACH STUDENTS, BUT THEY'RE ONLY ONE THING TO COACH STUDENTS.

THERE'S OTHER THINGS THAT WE'RE GOING TO GET A PRESENTATION IN THE EDUCATION WORKFORCE COMMITTEE TODAY ON STUDENT WELLBEING AND SOCIAL SUPPORT, WHICH I THINK IS HIGHLY RELATED IN SOME WAYS AND MAY HAVE SOME OVERLAP TO SUCCESS COACHES.

I MEAN, WE'RE TRYING TO INTEGRATE AND CREATE THAT SEAMLESS EXPERIENCE.

AND SO AND THEN, YOU KNOW, OPERATIONS, I MEAN, HR OR PUBLIC SAFETY FINANCE, I MEAN SOME OF YOUR AUDITS TOUCH VARIOUS ELEMENTS OF OUR OPERATIONS.

AND SO I THINK, YOU KNOW, LOOKING AT THE AUDIT PLAN, IT WOULD BE HELPFUL TO ME TO SEE HOW YOU'RE APPROACHING THE MAJOR FUNCTIONS OF A COLLEGE WHEN YOU'RE ON A PLAN, WHAT YOU MIGHT SUGGEST IN TERMS OF KPIS THAT YOU'RE REVIEWING IN YOUR AUDIT THAT COULD INFORM PERFORMANCE MANAGEMENT PROCESSES LATER ON.

AND LIKE I SAID, I THINK THIS IS ALL VERY GOOD AND I THINK THERE'S EVEN FURTHER USE THAT WE CAN MAKE OF YOUR WORK IN THE MANAGEMENT OF THE COLLEGE BOARD.

THANK YOU. THANK YOU.

OH. ON THE DIVERSITY EQUITY AND INCLUSION DEPARTMENT.

[01:10:09]

LET ME SAY THIS.

I HAVE SOME CONCERNS ABOUT THIS PARTICULAR DEPARTMENT AND THE STRUCTURE THAT IS SET UP.

PEOPLE SEEM PEOPLE FORGET AND SOME PEOPLE DON'T KNOW.

BUT, YOU KNOW, I USED TO DO MINORITY BUSINESS.

OKAY. AND INITIALLY, I'M THE PERSON WHO STRUCTURED WHAT WAS BEING DONE BY THAT DEPARTMENT FOR THE COLLEGE DISTRICT.

AND I UNDERSTAND THAT SOME THINGS NEED TO HAPPEN.

AND IF THEY DON'T, THEN YOU'RE NOT GOING TO BE SUCCESSFUL.

AND ONE OF THE MAJOR THINGS THAT I SEE THAT NEEDS TO BE DONE, AND THAT'S TO IDENTIFY AND MATCH BUSINESSES WITH, YOU KNOW, FINANCIAL OPPORTUNITIES.

SO I HAVE BEEN THINKING AND I THOUGHT ABOUT HAVING.

ONE CONVERSATION WITH.

YOU KNOW, I THINK I'VE BEEN HERE A LITTLE BIT LONGER THAN YOU'D HAVE WITH THEM.

AND THE STRUCTURE THAT IS SET UP RIGHT NOW, IT DOESN'T APPEAR TO REALLY BE WORKING AS.

AS I THINK IT SHOULD BE, BECAUSE YOU ARE IN IN THE PROCESS OR IN THE RIGHT PLACE IN AN ORGANIZATION THIS LONG, YOU'LL NEVER FIND OUT ANYTHING.

YOU'RE GOING TO BE CONSTANTLY ON THE LOSING END OF WHAT I THINK THE REAL PURPOSE SHOULD BE.

SO I THOUGHT WE HAD A BRIEFING SCHEDULE SO I COULD BRING THESE ISSUES FORWARD AND, YOU KNOW, PRETTY MUCH SO GO INTO AND ASK SOME SPECIFIC QUESTIONS OR WHATEVER TO MAKE SURE I UNDERSTAND EXACTLY WHAT'S HAPPENING WITH THAT DEPARTMENT.

SO THAT'S WHY I WAS ASKING MY QUESTIONS.

AND AT SOME POINT AND MAYBE BEFORE THEY GET AROUND TO DOING THE AUDIT, THAT NEEDS TO HAPPEN OR BUT THAT'S HOW AND SOMETHING THAT YOU NEED TO THINK ABOUT.

BUT AS LONG AS EVERYBODY UNDERSTANDS, I HAVE SOME CONCERN ABOUT THIS BECAUSE ONE THING THAT I'VE NOTICED THAT I SAID HERE AND I GET A LITTLE TIP OFF, I'VE HEARD SOME OF THE SAME STUFF THAT I'VE KNOWN FOR YEARS.

THE ATTORNEY THAT WORKED FOR YOU, ROB, THAT GAVE EVERYBODY THAT OVERVIEW ABOUT THOSE COURT CASES.

AND I WAS WORKING IN THAT AREA WHEN THOSE COURT CASES HAPPENED.

SO EVERYTHING SHE SAT HERE AND SAID, I ALREADY KNEW ALL THAT STUFF AND WHAT THE OUTCOME WAS AND HOW IT CAME ABOUT.

BUT IT LEADS MY BOTTOM LINE IS THAT AS MANY DOLLARS AS WE CAN, THAT NEEDS TO GO TO MINORITY BUSINESSES, ESPECIALLY MINORITY COMPANIES.

THAT'S WHAT WE NEED TO DO AND THAT'S THE TYPE OF STRUCTURE AND PROCESSES, STRUCTURES AND PROCESSES THAT WE NEED TO HAVE IN PLACE TO MEET WITH THAT PARTICULAR GOAL IN MIND.

WELL, IN TERMS OF THAT, OUR NUMBERS HAVE REALLY CHANGED IN TERMS OF THAT AREA.

THOSE THAT WORK, THE I THAT WORK IN THE PROCUREMENT PROCESSES, THE WORKING WITH MINORITY BUSINESS, MINORITY BUSINESSES FOR OUR CONTRACT OPPORTUNITIES.

IT'S NOT STAFFED EFFICIENTLY AND IT'S JUST NOT SPECIFIC.

SO I WANT TO NOT SO MUCH IN LINE WITH THAT.

BUT ON THE AUDIT PLAN, I DON'T HAVE A COMFORT LEVEL THAT YOUR MAJOR FUNCTIONAL AREAS HAVE STRATEGIC PLANS ON HOW THEY'RE GOING TO OPERATIONALIZE THE BOARD STRATEGIC PRIORITIES.

SO I'D LIKE FOR THAT TO BE LOOKED AT BECAUSE I NEED TO OPERATIONALIZE THE BOARD'S STRATEGIC PRIORITIES.

IF, LET'S SAY ON THE ACADEMIC SIDE, THE STUDENT SUPPORT SERVICES SIDE, ALL THE MAJOR FUNCTIONAL AREAS, IF THEY DON'T HAVE STRATEGIC PLANS TO DO THAT. YEAH, AND I APPRECIATE THAT.

AND AS I SAID, IT'S IT'S UNEVEN.

I MEAN, THAT IS THAT IS THE INTENT.

AGAIN, WITH THAT, THE BLUE SHEETS, KPIS, THE METRICS TO HAVE EACH DIVISION, EACH DEPARTMENT TO HAVE THOSE GOALS THAT ROLL UP TO THE

[01:15:08]

BUT NOT ALL OF THOSE ARE IN PLACE YET.

AND CERTAINLY AS IT RELATES TO STRUCTURE, WE'LL BE HAVING ADDITIONAL DIALOG AND CONVERSATION AS I CONTINUE TO REVIEW THE STRUCTURE.

WHEN WE WENT THROUGH THE CONSOLIDATION, PUT THE STRUCTURE IN PLACE, THERE ARE SOME THINGS, SOME AREAS THAT THAT MAYBE AREN'T WORKING IN ANY SPECIFIC SETTING HERE, BUT MAYBE AREN'T WORKING AS WELL AS WE NEED THEM TO.

AND SO WHAT I'M SAYING IS I I'M COMMITTED TO CONTINUOUSLY LOOKING AT THE STRUCTURE AND EVALUATING STRUCTURE.

WE MAKE CHANGES BECAUSE THEY CHANGE YOU NAMES EVERY TWO OR THREE YEARS, AND THIS IS THE BEST THING SINCE SLICED BREAD.

BUT GUESS WHAT? IT'S THE SAME OLD STUFF.

AND AT THE END OF THE DAY, WHAT IS THAT ONE? GO BACK AND CHANGE IT.

BUT I KNOW OUR NUMBERS ARE NOT CHANGING.

TRUST YOU. I AGREE WITH YOUR COMMENT ABOUT WE OUGHT TO STRUCTURE SOME OF THIS, FUNCTIONALLY, NOT LEAST THE COMMENT I MADE EARLIER.

AND FOR EXAMPLE, TO GET AT WHAT CHARLOTTE IS TALKING ABOUT, REALLY UNDERSTANDING WHERE WE ARE AND I DON'T SEE HOW WE CAN FIGURE THAT OUT OR HAVE A STRATEGIC UNDERSTANDING AND CREATE ACCOUNTABILITY IN THOSE AREAS JUST WITH A D-I AUDIT.

WE ALSO GOT TO GO INTO PROCUREMENT AND WE GOT TO GO INTO HIRING, WHICH ARE TOPICS ON THE AUDIT PLAN.

AND SO THERE'S SOME THERE'S SOME TAXONOMY AND GROUPING AND INTERRELATIONSHIP BETWEEN THE DISCRETE PROJECTS THAT YOU'RE WORKING OR THAT WE NEED TO FIGURE OUT.

MAYBE IT'S CONSIDERING THE AUDIT PLAN IN THE CONTEXT OF THE BOARD'S STRATEGIC PRIORITIES, YOU KNOW, AND AND WHEN YOU'VE GOT A CRITICAL MASS OF THESE TYPES OF PROGRAM AUDITS THAT THEY ARGUE IS CONTINGENT PRIORITY, YOU BRING IT BACK TO US TOGETHER.

AND AND SOME OF THE AUDITS MAY NOT HAVE BEEN DONE THAT QUARTER.

THEY MAY HAVE BEEN TWO QUARTERS, THREE QUARTERS OLD.

BUT WE NEED TO CONTEMPLATE THE INFORMATION FROM THOSE INTERRELATED PROGRAMS TOGETHER WHEN THEY COME UP TO US IN ORDER TO GET THAT STRATEGIC PERSPECTIVE, I THINK THAT YOU'RE TALKING ABOUT. AND THEN SO REMIND ME, PLEASE, HOW LONG NOW HAVE WE BEEN OPERATING UNDER THE NEW STRUCTURE? AND MOSTLY YOU'VE GOT THE THINGS IN PLACE THE TWO YEARS.

ABOUT TWO YEARS. OKAY.

SO IN MY OPINION, PLAYTIME.

SO WE'VE GOT OUR MAJOR PEOPLE ON BOARD AND WE KNOW THAT THEY'RE LIKE TO TRY TO GET EVERYTHING IN PLACE RIGHT.

BUT NOW IT'S TIME TO KIND OF STEP BACK A LITTLE BIT AND BECOME STRATEGIC, BECAUSE I DON'T THINK YOUR YOUR MAJOR LEADERSHIP AND GOING ON DOWN HAVE BEEN STRATEGIC TO THIS POINT.

THEY JUST TRYING TO GET IT DONE RIGHT.

ONE OF THE EXAMPLES IS WHEN THE HR PEOPLE MADE A PRESENTATION THAT KEPT USING CULTURE, CULTURE, CULTURE, CULTURE, AND YOU ASK THEM, WHAT IS THE CULTURE? SO TAKE A STEP BACK AND TRY TO PUT SOME OF THESE THINGS IN PLACE SO THAT WHEN PEOPLE SAY CULTURE, THE DALLAS COLLEGE CULTURE, YOU REALLY KNOW WHAT THAT MEANS, SO THAT EVERYBODY IS WORKING FROM THE SAME PLAYBOOK AND WE CAN ADVANCE IN TERMS OF ENROLLMENT, RETENTION, EMPLOYEE SATISFACTION, ETC., ETC., ETC..

TO ME, PLAYTIME IS OVER.

WELL, THAT SOUNDS LIKE AN ECHO PERHAPS, THAT WE HAD IN THIS ROOM LAST WEEK WITH OUR EXPANDED LEADERSHIP TEAM.

AND YOU CAN SEE SOME OF THE FACES BACK THERE THAT WE HAD A SIMILAR CONVERSATION THAT WE HAVE HAD TIME AND AGAIN.

YOU KNOW, THERE ARE AREAS OF THOSE THINGS LIKE CULTURE THAT IS GOING TO BE A MULTIYEAR EFFORT, BUT WITH SOME OF THE OPERATIONAL AREAS THAT WE DO NEED TO BE MORE STRATEGIC, THAT IS COMPLETELY FAIR.

AND I THINK THE TEAM'S AWARE THE TEAM HAS HEARD THAT, THAT AS WE HAVE TALKED ABOUT, THIS IS DECEMBER.

WE'RE ABOUT TO MOVE INTO A NEW YEAR.

AND WHAT SORT OF SHIFTS AND CHANGES THAT WE NEED TO MAKE IN THAT NEW YEAR.

SO THAT'S THAT'S COMPLETELY.

SO ANY OTHER QUESTIONS? COMMENTS? THEORIES, NOT CONSPIRACY THEORIES, ETC.? NOTHING. ALL RIGHT.

AND NO THOUGHT. THANK YOU FOR YOUR MORNING.

AND YOU DO UNDERSTAND THAT SOME OF THIS CONVERSATION AND NOTHING YOU ARE WHAT YOU ARE DOING.

YES. GOOD JOB.

THANK YOU SO MUCH. THANK YOU. THANK YOUR TEAM AS WELL WITH THAT LEAD.

[5.1. Committee Notes]

[01:20:03]

IT IS NOW 1125.

THE AUDIT COMMITTEE MEETING OF THE BOARD OF TRUSTEES OF DALLAS COLLEGE IS NOW ADJOURNED.

* This transcript was compiled from uncorrected Closed Captioning.