{
  "id": "2023-05-10_regular",
  "meeting_date": "2023-05-10",
  "meeting_type": "regular",
  "meeting_types": [
    "regular"
  ],
  "title": "Conroe ISD Board Meeting — May 10, 2023",
  "date_display": "May 10, 2023",
  "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": "2026-06-18T19:45:21.067276Z",
  "highlights": "",
  "sections": [],
  "agenda_breakdown_md": "",
  "meeting_notes_md": "# Conroe ISD Board Meeting — 2023-05-10\n*Regular Meeting — Unofficial Notes*\n*Based on auto-generated transcript. Not an official record.*\n*Generated 2026-03-28 15:35 UTC*\n\n---\n\n# Unofficial Meeting Notes\n## Conroe Independent School District – Board of Trustees Audit Committee Meeting\n### May 10, 2023 – Regular Meeting\n\n> ⚠️ **These are unofficial notes** based on an auto-generated transcript of the meeting. They may contain errors or omissions. Please consult official board minutes for authoritative information.\n\n---\n\n## Attendees & Context\n- Meeting held on a rainy day\n- Key staff present: Darren Rice (Finance), Ryan Hayden (Internal Audit), Robin (Child Nutrition Director) and her team (Karen Patterson – Assistant Director, Teresa Perry – Supervisor of Business Operations, Hamilton Good)\n- External: Sarah Roberts, Partner at Weaver (external auditor)\n- Dr. Noel and committee members present\n\n---\n\n## Item 1: Citizen Participation\nNo members of the public registered to speak.\n\n---\n\n## Item 2: Approval of Minutes – January 11, 2023 Audit Committee Meeting\n- **Motion** to approve minutes\n- **Vote:** Approved unanimously (no opposition noted)\n\n---\n\n## Item 3: Weaver Engagement – Audit Services Proposal (Five-Year Term)\n\n**Presenter:** Sarah Roberts, Partner, Weaver\n\n### Background\n- Weaver has served as CISD's external financial auditor for **15 years**\n- Current agreement ended with the most recent audit cycle\n- Weaver is proposing a new **five-year engagement**\n\n### Key Points About Weaver\n- Founded in 1950 in Fort Worth; headquarters now in Houston\n- Ranked among the **top 35 firms nationwide** by number of CPAs\n- Approximately 800+ professional staff, 1,000+ total employees\n- Offices coast to coast, but core focus remains in Texas\n- Works with **300+ governmental clients annually**, including **50+ school districts**\n- More than 50 governmental clients are **GFOA award recipients** (including CISD)\n- Nine Weaver staff, including Roberts, serve on the **GFOA Special Review Committee**\n- Major school district clients include: Cypress-Fairbanks ISD, Dallas ISD, Northside ISD, Fort Worth ISD, Houston ISD\n\n### Audit Timeline for CISD\n- Interim field work typically begins in **July**\n- Final field work begins in **early November**\n- Audit substantially complete **before winter holiday break**\n- First audit committee meeting in **January**\n\n### Scope Changes (Last Five Years)\n- New accounting standards: pension, OPEB, GASB 87 (leases), fund balance reporting changes\n- COVID-related disruptions and new federal funding sources created new compliance requirements and risk areas\n- Upcoming: **GASB 96** – not expected to have a huge impact on the district\n- Federal funding streams expected to remain consistent\n\n### Pricing Proposal\n- **Costs held steady for Years 1 and 2** of the five-year term\n- **~1.5% annual increases** built into Years 3-5\n- This is a **pricing proposal**, not a formal service contract; engagement letters are signed **annually**\n\n### Committee Discussion\n- A board member asked about the nature of the five-year contract — confirmed it is a **pricing term renewed annually via engagement letter**\n\n**Motion:** To accept Weaver's proposal for audit services  \n**Vote:** Approved unanimously (no opposition noted)  \n*This serves as a recommendation to the full Board.*\n\n---\n\n## Item 4: Approval of 2023-2024 Internal Audit Plan\n\n**Presenter:** Ryan Hayden, Internal Auditor\n\n### Activity Fund Audits\n- All high schools audited annually\n- **Two additional schools added** (junior highs/intermediates) compared to prior year\n- Schools with prior findings are automatically included for follow-up the next year\n\n### Major Audits (to be performed by Weaver)\n\n| Audit | Key Focus Areas |\n|-------|----------------|\n| **1. Payroll** | New payroll leadership provides opportunity; segregation of duties, payment fraud controls, pay rates, leave |\n| **2. Accounts Payable** | Segregation of duties, payment/fraud controls, travel cards |\n| **3. IT Cyber Security Risk Assessment** | Identify cyber risks, review/evaluate threats, create risk matrix and roadmap |\n\n*Note: Weaver also covers some payroll items in the financial audit; coordination is planned.*\n\n### Smaller/Internal Audits\n\n| Audit | Notes |\n|-------|-------|\n| **Jenna K. Bartlett Intermediate Construction Audit** | Construction audit |\n| **Print Shop** | Controls, inventory, chargebacks |\n| **Field Trips** | 3,300 field trips annually; ~$900,000 in expenditures; documentation and controls review |\n| **Hometown Ticketing System** | New third-party athletic ticketing vendor; audit planned for ~summer after one year of operation |\n| **Maintenance Audit Follow-up** | Follow-up from earlier audits |\n| **Child Nutrition Follow-up** | Follow-up on current year findings |\n| **Annual Attendance Audit** | ~15 campuses across 5 days; verify teachers take attendance on time |\n\n### Extended Discussion: Hometown Ticketing System\n\nThe committee engaged in significant discussion about the transition from an in-house proprietary ticketing system to **Hometown Ticketing**, a third-party vendor:\n\n**Why the change:**\n- The in-house programmer who built the proprietary system left the district\n- The programming position has been posted for a long time but remains unfilled due to competitive market\n- District explored raising pay grade and hybrid/telework options to attract candidates\n- More efficient to use an established commercial product\n\n**Key features/benefits:**\n- Primarily **cashless/electronic** system (phone payment, QR codes)\n- App download available but not required — tickets can be purchased via website\n- **No account setup required** for visiting teams' fans\n- Dedicated **help desk** from Hometown Ticketing (available during events)\n- Better reporting and tracking capabilities\n- Can track employee/staff ticket usage\n- Potential future expansion to prom tickets and other events (taking \"baby steps\" first)\n- Covers all athletic sports (football through soccer, baseball, etc.)\n- Transfer of risk from district to vendor\n\n**Cost structure:**\n- CISD pays an annual contract fee\n- Hometown Ticketing also collects a **percentage of each ticket sale** (passed through to purchaser)\n- No baseline payment from CISD beyond the contract\n- Current athletic ticket revenue: approximately **$500,000-$600,000 annually**\n- Described as reasonable fees (contrasted favorably with Ticketmaster)\n\n**Concerns raised:**\n- Wi-Fi strength at stadiums for electronic ticket scanning\n- District working to ensure strong Wi-Fi and avoid bottlenecks at gates\n- **Season ticket traditions** — especially at The Woodlands and Conroe where some holders have had tickets for 30-60 years; district committed to honoring legacy processes\n- **SOC 1 and SOC 2 reports** — committee member asked whether Hometown would provide these (given they process personal/financial data); staff indicated they would look into it\n- Training will be provided by Hometown for all staff selling tickets\n\n**Committee member observations:**\n- Chair expressed strong support for auditing payroll, AP, and IT cyber security\n- Noted growing fraud risk in AP, including AI-generated false invoices and phishing\n- Emphasized the importance of cyber security assessment\n\n**Motion:** To accept the audit schedule as outlined  \n**Vote:** Approved unanimously (no opposition noted)\n\n---\n\n## Item 5: Review Internal Audit Schedule – Fiscal Year 2021-22 Status Updates\n\n### 5a. Activity Fund Audits\n- Nearly complete; on schedule to finish by **August 1**\n- Additional schools were added this year\n\n### 5b. Child Nutrition Audit\n\n**Presenter:** Ryan Hayden\n\n**Context (provided by staff):**\n- **63 kitchens** operating daily\n- Approximately **40,000+ meals served daily**\n- Staff ranges from ~5 at elementary to ~17 at Conroe High School\n- Six field supervisors rotate through the district\n\n**Finding 1: Cash Handling**\n- Cash handling **procedures are well-designed** (test of design passed)\n- Issue was **test of effectiveness** — procedures not consistently followed:\n  - Instances of only one person counting cash drawers (should be two)\n  - One person signing cash drawer reports (should be two)\n  - Reports not being filed properly\n- **Root cause:** Training gaps, staff turnover in positions responsible for these tasks\n- **Remediation:** More responsibility assigned to field supervisors and managers for follow-up; emphasis on training at summer in-service\n\n**Finding 2: Safe Security**\n- Safe combinations were widely known among staff\n- Combinations found in notes, file drawers, and unsecured folders\n- **Remediation:** All combinations now centralized in Robin's office; staff must contact Child Nutrition leadership to obtain combinations\n\n**Finding 3: Innovation Deposits**\n- One instance of a deposit slip not retained\n- Four instances of managers signing deposit reports when balance was zero\n- Confusion in procedures about signing requirements\n- **Remediation:** Robin rewrote procedures to clarify signing requirements\n\n**Committee member asked** about going cashless in Child Nutrition; staff indicated this would likely not be possible across the entire district due to its size and diversity.\n\n**Acknowledgment:** A committee member publicly thanked Robin and the Child Nutrition team for their work, especially noting their dedication during the pandemic when they continued feeding children while schools were closed. Internal auditor Hayden also praised the cooperative spirit of CISD staff during audits.\n\n### Remaining Audits for Summer\n- **Caney Creek remodel** – cost and calculations review\n- **Police audit follow-up** from prior year\n- **Annual attendance audit**\n\n---\n\n## Item 6: Closed Session\n\nThe committee entered **closed session at 8:18 a.m.** pursuant to:\n- **Section 551.076** (deliberation regarding security devices/audits)\n- **Section 551.089** (deliberation regarding security assessments)\n\n*Stated that any action, vote, or decision regarding matters discussed in closed session would be made upon return to open session.*\n\nThe committee **returned to open session at 9:59 a.m.**\n\n*No action items were reported from the closed session in the transcript.*\n\n---\n\n## Item 7: Next Scheduled Meeting\n\n**Confirmed:** Wednesday, **September 13, 2023** at **7:30 a.m.**\n\n---\n\n## Adjournment\n\n**Motion to adjourn** — seconded and approved.\n\n---\n\n## Summary of All Votes\n\n| Item | Motion | Result |\n|------|--------|--------|\n| Minutes (Jan. 11, 2023) | Approve | **Passed unanimously** |\n| Weaver 5-Year Audit Proposal | Accept proposal (recommendation to Board) | **Passed unanimously** |\n| 2023-2024 Audit Plan | Accept as outlined | **Passed unanimously** |\n| Adjournment | Motion to dismiss | **Passed** |\n\n---\n\n## Key Takeaways\n\n1. **Weaver renewed** for another five-year term as external auditor with flat fees for the first two years and modest (~1.5%) annual increases thereafter\n2. **Major audits for 2023-2024** will focus on **Payroll, Accounts Payable, and IT Cyber Security** — all performed by Weaver\n3. **Hometown Ticketing** will replace the district's in-house athletic ticketing system; an audit is planned after approximately one year of operation\n4. **Child Nutrition audit** found procedural compliance issues (not design issues) in cash handling, safe security, and deposits — remediation plans are in place\n5. A **~1 hour 40 minute closed session** was held regarding security matters; no public action was taken afterward"
}