{
  "id": "2023-09-13_regular",
  "meeting_date": "2023-09-13",
  "meeting_type": "regular",
  "meeting_types": [
    "regular"
  ],
  "title": "Conroe ISD Board Meeting — September 13, 2023",
  "date_display": "September 13, 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": "2026-06-18T19:45:21.119959Z",
  "highlights": "",
  "sections": [],
  "agenda_breakdown_md": "",
  "meeting_notes_md": "# Conroe ISD Board Meeting — 2023-09-13\n*Regular Meeting — Unofficial Notes*\n*Based on auto-generated transcript. Not an official record.*\n*Generated 2026-03-28 16:02 UTC*\n\n---\n\n# Unofficial Meeting Notes\n## Conroe ISD Audit and Investment Committee Meeting\n### September 13, 2023 — Regular Meeting\n\n> **Note:** These are **unofficial notes** based on an auto-generated transcript of the meeting. They may contain errors or omissions.\n\n---\n\n## Attendance & Quorum\n\nA quorum was **not present** for this meeting. As a result, the committee could receive information on agenda items but was **unable to vote or take formal action** on Items 2 and 6. Item 2 (approval of prior meeting minutes) was skipped and will be addressed at the next meeting.\n\n---\n\n## Citizen Participation (Item 1)\n\nNo members of the public signed up to speak.\n\n---\n\n## Item 3: Status of 2022–2023 Internal Audit Plan and 2023–2024 Internal Audit Plan\n\n### 2022–2023 Audit Plan (Complete)\n\n**Activity Fund Audits:** All completed.\n\n**Katy Creek Upgrade Construction Audit:**\n- Backend audit reviewing numbers against invoices, subcontractor contracts, etc.\n- CISD Planning & Construction was found to have **great controls** over their financials.\n- **One observation noted:** 2 out of 37 subcontractor pay applications lacked detailed information sufficient for an outside auditor to determine what costs were for. P&C staff understood the items, but documentation was insufficient for independent review.\n- Discussion about whether P&C can maintain this quality level if the district scales up with a potential new bond. The internal auditor suggested it would be beneficial to have an outside expert verify that materials ordered match what is delivered.\n\n**PEIMS Attendance Audit:**\n- Conducted annually to ensure attendance is taken accurately, as state revenue depends on it.\n- **Methodology was refined this year:** Missing submissions were cross-checked to confirm the teacher was actually present that day (substitutes take manual attendance that doesn't register in the electronic system).\n- **Sample:** 10 schools over 5 different dates.\n- **Error definition:** Attendance taken more than one hour after the designated time (when students are no longer present) or truly missing submissions where the teacher was present.\n- **Results:**\n  - ~4,600 class instances reviewed\n  - 413 errors (attendance taken outside the one-hour window)\n  - 214 actual missing submissions (teacher present, attendance not taken)\n  - **Overall error rate: 13.5%** — an improvement from the prior year\n- **High schools had higher error rates** than elementary and junior high, attributed to the fact that high school teachers must take attendance multiple times per day (4–7 periods), making it more burdensome.\n- Some high schools now use a special bell at the official attendance time as a reminder.\n- Automated solutions (e.g., smart ID tags/scanners) were briefly discussed but deemed cost-prohibitive and potentially problematic (tracking concerns, lost cards, etc.).\n- Dr. Null requested that this data be shared with assistant superintendents and principals, noting that principals are competitive and seeing campus-level comparisons could help motivate improvement.\n\n### 2023–2024 Audit Plan (In Progress)\n\nAudits planned for the current year:\n1. **Activity Funds** — one already completed\n2. **Payroll Audit** — in final week of field work; focused on process, controls, segregation of duties, and flow-charting all processes for future reference. Last payroll audit was 3 years ago. A new payroll director (Chase) is also in place.\n3. **Accounts Payable** — including a review of the **travel card program**\n4. **Cybersecurity Risk Assessment** — Weaver engagement; kickoff meeting scheduled for **January 11, 2024**, with field work starting **January 15, 2024**\n5. **Field Trip expenditures** (~$1 million/year)\n6. **Hometown Athletic Ticketing System** — will have been in use for a year\n7. **Child Nutrition follow-up**\n8. **Band Inventory** — high schools in May, all others in November\n9. **Maintenance follow-up**\n10. **Annual PEIMS attendance review**\n11. **Construction Audit**\n12. **Print Shop** (lowest priority; will be completed if time permits)\n\n**Notable Discussion — Travel Cards:**\n- The district historically was \"very anti-credit card\" and had only 3 district credit cards for emergencies.\n- As hotels increasingly refuse checks, the district implemented **pre-loaded travel cards** with merchant category code restrictions (cards only work at the designated hotel).\n- Cards are checked out by employees, loaded with the specific PO amount, and returned with receipts after travel.\n- Cards can be adjusted remotely in real time if needed and deactivated immediately if lost.\n- The district has approximately 100 cards stored but they carry zero balances until activated for specific travel.\n- The program started with student travel in spring 2023 and expanded to all employee travel as of September 1, 2023.\n- **The district does not use P-cards (purchasing cards).** Maintenance and other departments use internal purchase orders for procurement.\n\n---\n\n## Item 4: Potential Independent Program Analysis of Planning & Construction\n\nDr. Null presented a proposal to engage an **independent industry expert** to evaluate the Planning & Construction Department's **front-end processes** ahead of the potential new bond program (~$1.6–$1.8 billion in construction work).\n\n**Background:**\n- Community members during the 2019 bond cycle asked how the district ensures it gets the best prices.\n- Previous backend audits have confirmed the district gets what it pays for; this initiative focuses on the **front end** — procurement, guaranteed maximum pricing, contracting, and organizational structure.\n\n**Proposed Scope:**\n- Organizational structure and staffing adequacy\n- Procurement methods and bidding processes\n- Interview/selection processes for contractors and architects\n- Oversight of contractors and architects\n- Project management practices\n- Construction standards\n- Compliance with applicable law\n- Financial processes on the back end\n\n**Key Details:**\n- Kyle Holland, President/CEO of the Associated General Contractors of America (Houston Chapter), helped identify a potential consultant — a former school district P&C leader (~15 years experience) now working as a consultant evaluating such programs.\n- The consultant would **report directly to the Audit Committee** to maintain independence.\n- No contract has been signed yet; the committee was asked for feedback.\n- Mr. Foster (head of P&C) is reportedly supportive and sees it as an opportunity for improvement.\n\n**Committee Discussion:**\n- Trustee Chase emphasized interest in the exact scope of work, the consultant's evaluation expertise, and how \"best value\" is defined (not just cheapest price, but also risk transfer).\n- Noted the district already uses **Construction Manager at Risk (CMAR)** as its default construction method.\n- Raised concern about **Key Personnel Risk** — the district is lean, and much institutional knowledge exists only in individuals' heads, which creates risk, especially with scaling up.\n- Dr. Null committed to sharing the proposed scope of work with Trustee Chase for review.\n\n**No vote taken** (informational item).\n\n---\n\n## Item 5: Investment Review and Results Update\n\nPresented by Cara (Finance staff).\n\n### Investment Strategy\n- Operating funds invested in: State pools, WoodForest National Bank, commercial paper, and short-term government securities (≤1 year maturity)\n- $50 million of unassigned fund balance managed by **TCG Investment Advisors** in a **36-month investment ladder**\n\n### General Fund Portfolio Composition (as of 8/31/2023)\n| Category | Amount | % of Portfolio |\n|---|---|---|\n| Agency Securities | $16.6M | 8.91% |\n| Money Market (WoodForest) | $76.3M | (significant increase due to new depository contract: 90-day T-Bill + 25 basis points) |\n| Municipal Bonds | $5.1M | 2.74% |\n| State Pools | $56.5M | 30.25% |\n| Treasury Securities | $32.2M | 17.25% |\n| **Total General Fund Par Value** | **$186.99M** | |\n\n### Interest Revenue (5-Year Trend)\n- FY 2022: $1.47 million\n- FY 2023: **$11.4 million** (significant increase due to rising interest rates)\n\n### Combined Portfolio (All Funds, as of 8/31/2023)\n- **Total par value: $433.92 million**\n- Largest holdings: State pools ($32.9M noted, though this may reflect a transcript discrepancy with the general fund figure), Treasury securities ($32.2M), agencies ($16.6M), money market ($76.5M), municipal bonds ($5.1M)\n- **Combined portfolio yield: 5.11%**\n- **Benchmark (90-day T-Bill): 5.29%**\n\n### Benchmark Analysis\n- The portfolio has been playing \"catch-up\" to the 90-day T-Bill benchmark following 11 Fed rate increases since March 2022.\n- State pools take approximately 60–90 days to adjust to rate increases.\n- The gap between portfolio yield and benchmark has been narrowing.\n\n---\n\n## Item 6: Conroe ISD Investment Policy\n\n**Unable to vote due to lack of quorum.** Information was received.\n\n- The following items will be brought to the **full board meeting the following Tuesday** for approval:\n  1. Annual approval of the **Local Investment Policy** (no changes recommended)\n  2. List of **designated investment officers**\n  3. **Sources of instruction** for required 8 hours of investment training every 2 years\n  4. List of approved **brokers/dealers**\n\n---\n\n## Item 7: Proposed Meeting Dates for 2023–2024\n\nProposed dates:\n- **January 10, 2024**\n- **May 8, 2024**\n\nBoth dates were agreed upon by members present. No formal vote was required; dates are already on the district calendar.\n\n---\n\n## Adjournment\n\nThe meeting adjourned at **8:31 a.m.**\n\n---\n\n*These are unofficial notes based on an auto-generated transcript and may contain inaccuracies. For official minutes, please refer to the approved minutes published by Conroe ISD.*"
}