January 10, 2024 — Regular Meeting
Conroe ISD Board Meeting — 2024-01-10
Regular Meeting — Unofficial Notes
Based on auto-generated transcript. Not an official record.
Generated 2026-03-28 16:28 UTC
Unofficial Meeting Notes
Conroe ISD Audit and Investments Committee Meeting
January 10, 2024 — Regular Meeting
⚠️ Disclaimer: These are unofficial notes based on an auto-generated transcript of the meeting. They may contain errors or omissions. Please refer to official minutes for the authoritative record.
Key Items & Discussions
Item 1: External Audit Report (Acceptance)
- Discussion with external auditors (Weaver) regarding audit scope, timeline, and staffing.
- Audit team typically includes three full-time audit associates (including a senior associate and supervisor), a senior manager on-site approximately 30% of the time, plus partner time.
- Final field work spans approximately four full weeks in November through early December following the close of the fiscal year.
- The firm does not bill for hourly overages — they do what it takes to complete the work.
- Committee members praised both the external audit team and district finance staff (specifically Ms. Garza and her team) for their diligence, thoroughness, and the importance of the independent review of controls and financial statements.
Vote: Motion to accept the audit report and recommend it to the full board for approval.
- Result: Passed unanimously.
Item 2: Nomination and Selection of Audit Committee Chair for 2024
- A committee member nominated the current chair (Chairman Chase) for re-election, citing his leadership and excellent performance.
- The nomination was seconded.
Vote: Motion to re-elect Chairman Chase as audit committee chair for 2024.
- Result: Passed unanimously (including the chair voting for himself, which was noted as "awkward").
Item 4: Approval of Minutes from September 13, 2023 Meeting
- The September 13, 2023 meeting was informational only (no quorum was present; no action was taken at that meeting).
- One member who was not present at the September meeting abstained initially but then agreed to second the motion after confirming they had reviewed the minutes.
Vote: Motion to approve the September 13, 2023 minutes.
- Result: Passed unanimously.
Item 5: Status Update on 2023–2024 Internal Audit Plan
Internal Audit staff presented progress on the current audit plan. Key highlights:
Activity Fund Audits
- Three audits complete.
- The auditor who handles activity funds also manages PTO support work, so August–December is PTO-focused and the second half of the year shifts to activity fund audits. This is the expected annual pattern.
Payroll Audit
- A deep dive was conducted, timed with a personnel transition (Rachel taking over from Becky).
- Finding: The overall control environment is very strong. The primary issue was that controls were in place but not formally documented (e.g., sign-offs and dates not consistently recorded). Eleven controls have now been formalized.
- Flowcharts were created for all core payroll functions, which will aid future training and audits.
- The committee chair expressed comfort with the results, noting payroll is a prime area for potential issues.
Accounts Payable Audit
- Strong control environment found overall.
- Flowcharts were created (noted as especially helpful given an upcoming retirement in February).
- Finding: Four people had access to change MCC (Merchant Category Codes) on travel cards; this was reduced to only two authorized individuals (the CFO and the head of the travel department) to ensure proper segregation of duties.
- Travel Card System Explained: Conroe ISD does not use traditional credit cards. Instead, they use pre-loaded, one-time-use travel cards restricted to hotel purchases only. This system was implemented because hotels stopped accepting checks, and the district wanted to avoid the risks associated with open-ended credit cards. Cards are reconciled monthly against bank statements and monitored daily.
Maintenance and Custodial Follow-Up Audit
- All previously identified opportunities for improvement have been remediated and closed.
- Inventory check at the new warehouse: 25 for 25 (100% accuracy).
- Two prior observations addressed:
- Paper accident reports eliminated; now electronic only.
- Attic stock (leftover construction materials — tiles, paint, doors, etc.) consolidation into the warehouse is ongoing, expected to be complete by August. Internal audit will verify controls once consolidation is done.
New Warehouse Facility Presentation (Marshall, Maintenance)
- Marshall provided an overview of the new consolidated maintenance/custodial warehouse:
- Significantly larger than the old facility (from ~40x40 to ~70x125).
- Consolidated three separate warehouses into one location with one inventory manager.
- Strong physical controls: segregated parking lots, roll-up door access restricted by accordion barriers, camera coverage everywhere, limited access (only coordinators and assistant directors for after-hours).
- Items are signed out at a counter; issued to truck pools, then to work orders.
- Lawn crew bay design: After a prior theft incident (~6-7 years ago, six trucks/trailers and lawnmowers stolen, later recovered via GPS), the new facility was designed so trucks pull directly into a secured metal building — eliminating the need for daily loading/unloading, saving approximately 30 minutes each morning and afternoon. All behind fenced areas with cameras.
- Committee members were encouraged to visit the facility.
Upcoming Audits
- Cybersecurity Risk Assessment: Weaver conducting a boots-on-the-ground assessment (kick-off meeting the following day). Previous year was a general plan review; this year will verify actual practices match stated procedures.
- Field trips: Starting the following week.
- Athletic ticketing: Q2 (confirmed that cash has not yet been fully eliminated).
- Child Nutrition follow-up: Q2.
- Band inventory: Every other year cycle; this is an "on" year.
- Print shop audit and Construction audit also planned.
2024–2025 Audit Plan Preview
- The next committee meeting will include discussion of the FY 2024–2025 internal audit plan.
- A risk assessment will be issued around April, listing departments/areas weighted by risk.
- Committee members were asked to think about areas they would like internal audit to examine and submit suggestions.
PTO/PTA and Booster Club Oversight Discussion
- PTA vs. PTO: PTA groups join the national PTA Association (with associated fees); PTOs function independently. Both are parent-teacher groups.
- Key distinction: PTO/PTA funds are not district funds. They belong to the individual organizations.
- The district helps PTOs set up (IRS filings, tax-exempt status under the CISD Educational Support Group umbrella, EIN numbers) and provides training on fundraising rules and financial reporting. An outside person assists with IRS filings twice a year.
- Principals provide oversight — ensuring proper bylaws, treasurer reports, and appropriate use of funds. District staff conducts a detailed financial overview for treasurers at the start of each year.
- The district does not directly audit PTO/PTA funds and cannot direct how they spend their money, but PTOs function at the district's discretion.
- Booster clubs operate under a separate structure from PTOs/PTAs. The district provides guidance but does not have direct oversight of their accounts. It was noted that high school booster clubs (e.g., band booster clubs with 400+ members) can handle millions of dollars in funds.
Item 6: Next Scheduled Meeting
- Confirmed: Wednesday, May 8, 2024 at 7:30 a.m.
- A question was raised about whether the committee needed to meet before May regarding upcoming bond issuances. The response was that bond sales go directly to the full board — a bond sale was occurring that same day, and the next sale wouldn't be until the following year. No additional committee meeting was deemed necessary.
Meeting Adjournment
Vote: Motion to adjourn.
- Result: Passed unanimously.
Summary of All Votes
| Item | Motion | Result |
|------|--------|--------|
| External Audit Report | Accept and recommend to full board | Passed unanimously |
| Audit Committee Chair 2024 | Re-elect Chairman Chase | Passed unanimously |
| Sept. 13, 2023 Minutes | Approve | Passed unanimously |
| Adjournment | Motion to adjourn | Passed unanimously |
Notable Items to Watch
- Cybersecurity risk assessment — kick-off meeting the day after this meeting; results forthcoming.
- Attic stock consolidation — expected completion by August 2024; follow-up audit to verify controls.
- FY 2024–2025 audit plan — to be discussed at the May 8, 2024 meeting; committee members encouraged to submit areas of interest.
- Booster club financial oversight — raised as a discussion point given the significant sums flowing through high school booster clubs, with no direct district audit of those funds.
- Bond sale occurring the same day as this meeting; results to be reported to the full board.