{
  "id": "2020-09-09_regular",
  "meeting_date": "2020-09-09",
  "meeting_type": "regular",
  "meeting_types": [
    "regular"
  ],
  "title": "Conroe ISD Board Meeting — September 9, 2020",
  "date_display": "September 9, 2020",
  "type_display": "Regular Meeting",
  "types_display": [
    "Regular Meeting"
  ],
  "item_count": 0,
  "has_agenda": false,
  "has_notes": true,
  "pdf_filename": null,
  "packet_url": null,
  "generated_at": "2026-06-18T19:45:20.772071Z",
  "highlights": "",
  "sections": [],
  "agenda_breakdown_md": "",
  "meeting_notes_md": "# Conroe ISD Board Meeting — 2020-09-09\n*Regular Meeting — Unofficial Notes*\n*Based on auto-generated transcript. Not an official record.*\n*Generated 2026-03-28 13:10 UTC*\n\n---\n\n# Unofficial Meeting Notes — Conroe ISD Audit Committee & Investment Committee Meetings\n\n**Date:** September 9, 2020\n**Type:** Regular Meeting (Audit Committee followed by Investment Committee)\n**Note:** These are unofficial notes based on an auto-generated transcript and may contain errors.\n\n---\n\n## AUDIT COMMITTEE MEETING\n\n**Called to order** with a quorum of the board present.\n\n**Public Comment:** No members of the public came forward to speak on any of the three action items.\n\n---\n\n### Item 1: Approval of Prior Meeting Minutes (May 13, 2020)\n\n- No recommended changes.\n- **Vote: Approved unanimously.**\n\n---\n\n### Item 2: Internal Audit Presentation — Brian Hayden, Internal Auditor\n\n**General Notes:**\n- Mr. Hayden noted the following Thursday would be his one-year anniversary with the district. He thanked the audit committee, Dr. Noel, and Darren for their support.\n\n**FY 2019–2020 Audit Plan Updates:**\n- **Payroll audit** was continuously deferred throughout the year due to COVID-19 disruptions and end-of-year timing. It has been moved to the FY 2021 plan, with October identified as an ideal start time.\n- **Flex-19 construction close-out** was added to the plan and completed.\n- **Band instrument inventory** is currently underway — had not been done in 10 years. Once complete, the FY 2019–2020 audit plan will be fully finished.\n\n**Completed Audit Results:**\n\n- **Procurement Audit** (final report issued June 2020): Found a very well-controlled department — one of the best Mr. Hayden has seen. The only recommendation was to perform spot checks on co-op purchases under $25,000 to ensure best pricing.\n\n- **Flex-19 Construction Close-Out**: Numbers checked out \"to the penny.\" Two findings:\n  1. Some change orders were being approved after invoices were already paid. While this sometimes happens in construction due to scheduling, the recommendation is to minimize it.\n  2. Subcontractor invoice detail was sometimes insufficient (e.g., listing \"four people at $2,400\" without specifying rates or job classifications). More detail is needed to verify compliance with contractual rate requirements.\n\n**FY 2021 Audit Plan:**\n\n**Risk Assessment:**\n- Sent to senior management and audit committee. Of the top five risk areas identified, four are included in the FY 2021 plan. **Police** was the only top-five area not included.\n- **Activity funds** ranked near last in risk, so while they will still be covered, they will no longer be a primary focus.\n\n**Campus Audits Planned:**\n- All high schools\n- Cox and McCullough (scored poorly in prior year, returning to the list)\n- Stockton (new campus, not previously audited)\n- Two elementary schools\n- Campus audits will be pushed later in the year to give schools time to operate after being closed. Audit hours per school will be cut from ~80 to ~40, with reduced scope focused on cash disbursements and fundraising.\n\n**Significant Discussion — Activity Fund Monitoring:**\n- A finance office position that handles activity funds will be given procedures for monthly reviews. Chairman Sanders praised this approach, noting it creates a control process that allows internal audit to focus on auditing controls rather than detailed bookwork.\n\n**Operational Audits Planned:**\n1. **Payroll, Leave, and Workers' Comp** — Verify leave is approved before being taken, workers' comp is approved before payment, and assess payroll system controls and efficiency.\n2. **Transportation** — Major audit covering state/federal regulatory compliance, asset safeguards (especially fuel), fuel cost management, bus routes, and inventory controls.\n3. **Child Nutrition** — Major audit covering state/federal compliance, cash controls at campuses (lunch/breakfast payments), food service contracts, and inventory. Chairman Sanders expressed particular interest in recommendations regarding student lunch payment handling.\n4. **Flex-20 Construction Close-Out** — Expected around June; will be streamlined based on lessons learned from Flex-19; no outside help needed this time.\n\n**Co-Sourcing Approach:**\n- Mr. Hayden described using Weaver (the district's external auditor) as a resource for specialized knowledge in areas like child nutrition and transportation. Once work programs are developed, the district can handle future audits independently. This was described as the most cost-effective approach.\n- Chairman Sanders noted that Weaver's required federal program audits of child nutrition should be able to rely on internal audit work, potentially saving time and money.\n\n**Continuing Education:**\n- Mr. Hayden holds three certifications requiring 40 hours of continuing education each year, including four hours of ethics every other year.\n\n---\n\n### Item 3: Approval of Internal Audit Plan for FY 2021\n\n- **Vote: Approved unanimously.**\n\n---\n\n### Item 4: Approval of Audit Committee and Internal Audit Charters\n\n- No changes noted from prior versions.\n- **Vote: Approved unanimously.**\n\n---\n\n### Item 5: Confirmation of Meeting Dates for 2021\n\n- Five meeting dates were proposed for 2021 (continuing the existing pattern).\n- Discussion noted that the November and March meetings are typically light; the committee agreed to keep them on the calendar and evaluate whether to hold or cancel as they approach.\n- The November 11 date (Veterans Day) was confirmed — no large veterans program is expected that day.\n- Darren suggested that if the November meeting is not needed and new audit committee members are in place, an hour-long workshop could be held at a different time instead.\n- **Vote: Meeting dates confirmed unanimously.**\n\n**Audit Committee meeting adjourned at 7:46 AM.**\n\n---\n\n## INVESTMENT COMMITTEE MEETING\n\n**Convened immediately following the Audit Committee meeting.**\n\n---\n\n### Item 1: Approval of Prior Meeting Minutes (September 13, 2018)\n\n- No changes.\n- **Vote: Approved unanimously.**\n\n---\n\n### Item 2: Investment Review and Results Update — Ms. Garcia\n\n**District Investment Strategy (Two Components):**\n1. **Current Operating Funds** — Invested in State Pools, Woodforest National Bank, Commercial Paper, and short-term government securities (maturity ≤ 1 year).\n2. **$50 Million General Fund Unassigned Fund Balance** — Invested with TCG Investment Advisors in a 36-month ladder. Described as performing very well, especially in the current low-rate environment.\n\n**General Fund Portfolio as of 8/31/2020: $205.2 million**\n- Certificates of Deposit: $564,000\n- Commercial Paper: $29.7 million\n- Agencies: $29.4 million\n- Money Market Funds: $1.4 million (significant decline from prior year — Woodforest was unable to extend a previously attractive rate of 25 basis points over the 90-day T-bill; funds shifted back to state pools)\n- Municipal Bonds: $21 million\n- Pools: $122.9 million\n\n**Interest Revenue:**\n- FY 2019–2020: $3.7 million (down from $6.4 million in the prior year due to rate declines)\n- The district proactively removed $1.7 million from the FY 2021 budget for interest revenue in anticipation of lower rates.\n\n**Combined Portfolio (All Funds) as of 8/31/2020: $375.5 million (par value)**\n- Pools: $271.8 million\n- Certificates of Deposit: $560,000\n- Commercial Paper: $29.7 million\n- Agencies: $29.4 million\n- Money Market: $22.8 million\n- Municipal Bonds: $21.1 million\n- Weighted Average Maturity (WAM): 61 days\n- Portfolio Yield: 0.58%\n- Benchmark (90-day T-bill): 0.11%\n\n**Performance vs. Benchmark:**\n- Five-year average: 31 basis points above benchmark\n- As of 8/31/2020: 47 basis points above benchmark\n- TCG ladder yielding 1.76% vs. benchmark of 0.11%\n\n**Key Discussion Points:**\n- **Chairman Sanders** noted that while investment revenue is down, the district is benefiting significantly from debt refinancing opportunities in the low-rate environment, resulting in a net positive position. He referenced a current refunding expected to generate **$40+ million in savings**.\n- Sanders expressed strong satisfaction with the overall investment strategy, noting it is working as intended — focused on preservation of principal while maximizing earnings. He praised the TCG ladder as a \"home run\" that helps balance the portfolio and modulate risk.\n- Ms. Garcia confirmed that had the $50 million in the TCG ladder been in the pools instead, the district would have lost approximately 100+ basis points of return.\n\n---\n\n### Item 3: Approval of Investment Policy\n\n- No changes from the prior year's approved policy.\n- Three standard investment items will be brought to the September board meeting: designation of investment officers, approved broker list, and training sources for investment officers.\n- Both legal and local investment policies were moved for approval together.\n- **Vote: Approved unanimously.**\n\n**Next Investment Committee meeting:** September 2021\n\n**Investment Committee meeting adjourned at 7:55 AM.**\n\n---\n\n## Summary of All Votes\n\n| Item | Result |\n|------|--------|\n| Audit Committee: Prior meeting minutes (5/13/2020) | **Approved unanimously** |\n| Internal Audit Plan FY 2021 | **Approved unanimously** |\n| Audit Committee & Internal Audit Charters | **Approved unanimously** |\n| 2021 Audit Committee meeting dates | **Confirmed unanimously** |\n| Investment Committee: Prior meeting minutes (9/13/2018) | **Approved unanimously** |\n| Investment Policy (Legal & Local) | **Approved unanimously** |"
}