May 8, 2024 — Regular Meeting
Conroe ISD Board Meeting — 2024-05-08
Regular Meeting — Unofficial Notes
Based on auto-generated transcript. Not an official record.
Generated 2026-03-28 16:58 UTC
Unofficial Meeting Notes
Conroe ISD Audit Committee Meeting
May 8, 2024 — Regular Meeting
⚠️ These are unofficial notes based on an auto-generated transcript and may contain errors or omissions. They are not a substitute for official board minutes.
Meeting Called to Order
- Time: 7:35 a.m.
- Quorum confirmed; meeting posted in accordance with the Texas Open Meetings Act.
Item 1: Citizen Participation
- No members of the public registered to speak.
Item 2: Approval of Minutes
- Minutes from the January 10, 2024 Audit Committee meeting were presented.
- Motion made and seconded.
- Vote: Passed unanimously.
Item 3: Update on Planning and Construction Operations Review
Presenter: Mr. Robertson (external consultant hired to review the district's planning and construction operations for transparency and efficiency, particularly in light of the nearly $2 billion bond construction program)
Scope of Review:
- Organizational structure and resources of the Planning & Construction (P&C) department
- Benchmarking against similar-sized districts in the Greater Houston area (student count and capital construction volume)
- Procurement document compliance with statutes, regulations, and board policy
- Selection process for general contractors, architects, and engineers
- Interviews with P&C personnel and staff in interfacing departments (maintenance, instructional)
- Attended schematic design meetings, 75% page-turn reviews, and owner-architect-contractor meetings (including Conroe High School project)
Key Findings:
1. Organization & Staffing:
- Many project coordinators are recent hires, some new to school construction
- Executive Director of P&C is conducting on-the-job training (weekly meetings on pay applications, change orders, contractual responsibilities)
- More development needed before project assignments begin (~October/November timeframe)
2. Department Relationships:
- Reviewed relationships between P&C and Maintenance (critical because maintenance lives with what P&C builds) and between P&C and the Instructional side (P&C must deliver schools that meet instructional programs)
3. Procurement Process:
- Found to be fair, compliant, and delivering best value
- Results in a diversity of contractors, architects, and engineers — quality companies in each category
- Evaluation criteria and point values are widely accepted and appropriate
- Review committee is diverse (includes Finance, Instructional, and Maintenance representatives — not just P&C), which prevents score manipulation
- A committee member asked specifically about the "best value" formula; Mr. Robertson confirmed it is standard and appropriate
4. Delivery Method:
- Reviewed 10 projects approved over two years: 7 were Construction Manager at Risk (CM at Risk), 3 were Job Order Contracting (JOC)
- JOC is appropriate for kitchen rehabilitation projects ($1-3M range)
- CM at Risk is the primary and appropriate method for multi-year capital construction programs
Preliminary Recommendations:
1. Staff Development (Already acted upon)
- Training by construction attorney Michelle Morris (Rogers Morris & Grover) on CM at Risk contracts, legal obligations, cost of work, general conditions, change requests, allowances
- Training already conducted for P&C and other leadership team members
- Recommended ongoing periodic reviews with construction attorney
- Recommended AGC (Associated General Contractors) project management training for approximately 4 project coordinators
2. Reclassify Contract Specialist Position (In progress)
- Courtney (contract specialist) performs well beyond her job description — manages bond funds, contract processes, took on playground certification, working on her degree
- Recommended moving from clerical category to professional/administrative level comparable to project coordinators
- Position sent to TASB for proper pay scale classification
3. Add Senior Project Manager/Coordinator
- Recommended adding someone with a degree in construction science, architecture, or engineering
- Market is thin — districts struggle to find qualified candidates
- A district to the west is paying project managers $20,000-$30,000 more annually and getting better credentials
4. Executive Director of Operations Position (Already acted upon)
- Board recently approved this position
- Frees Mr. McCord to focus on supervising both Maintenance and P&C, enhancing critical department relationships
5. Delivery Method Diversification (In progress)
- Recommended using Competitive Sealed Proposals (CSP) for some smaller, standalone projects (e.g., elementary gym additions, tennis courts)
- A tennis court project for Conroe High School is already tracking on the CSP path
- Mr. Robertson agreed to provide formal guidance on triggers/thresholds for when different delivery methods should be used
6. Fund P&C Administration with Bond Funds (Future consideration only)
- Districts without in-house P&C typically pay program administrators 5-6% of total bond cost
- In-house administration is considerably less expensive
- Funding staff with bond funds (e.g., 75% salary from bond funds) would ease general fund pressure and allow flexible staffing
- Dr. Null stated clearly this is NOT an option for the current bond — the district promised the community no salaries would be paid from bond funds. This would only be considered for future bonds and would need to be advertised to the community upfront.
Timeline:
- Full report expected mid to late summer — Mr. Robertson needs to observe more meetings and review additional documents.
Item 4: Consider and Approve 2024-2025 Internal Audit Plan
Presenter: Internal Auditor (Brian)
Risk Assessment Results:
- Risk assessment survey was distributed; Chairman Chase's email helped generate strong response
- Four of the top five identified risks are included in next year's audit plan
- Network Services (ranked in top 5) was excluded because it has been audited three consecutive years
Proposed "Phase 3" Enhancement:
The internal audit function is moving to a new phase — co-sourcing with Weaver (external audit firm) to bring in subject matter experts (not just audit seniors) for financial/operational audits, in addition to the existing IT audit co-sourcing.
Two Proposed Co-Sourced Audits with Discussion:
1. CISD Budget Process
- Internal auditor would examine controls, procedures, and processes
- Weaver SME would benchmark against peer districts and identify best practices
- Significant committee discussion:
- Chairman Chase questioned the "so what" — the district hasn't significantly missed its budget; questioned whether this is a true key risk area
- Noted district already has external feedback that financial processes are "best in class"
- Budget ranked #1 on risk assessment partly due to CFO leadership change, which may skew results
- Miss Garza (finance) noted the district essentially does zero-based budgeting and allocates state-determined funding; suggested the real risk may be in PEIMS reporting (which generates funding) rather than the budget allocation process
- Dr. Null suggested the real risk may be in tracking whether the district is leaving money on the table due to inadequate tracking of PEIMS data inputs — noted a new position was created specifically for this
- Outcome: Committee agreed to refine the scope through further discussion between Chairman Chase and the internal auditor; may narrow focus to PEIMS reporting and efficiency in actual expenditure line items rather than the budget formulation process itself
2. HR Hiring and Retention
- Internal auditor would examine controls (background checks, proper pay scale, job history verification)
- Weaver HR SME would benchmark against peers on hiring/retention practices
- Committee was supportive of this audit
Other Planned Audits for 2024-2025:
| Audit | Timing | Notes |
|-------|--------|-------|
| Apps Security and Control (co-sourced with Weaver) | TBD | Hundreds of apps; review controls, security, identify ones to eliminate |
| Transportation | TBD | Last done in 2021; includes parts inventory, fuel management, asset security; new director, new depot |
| Chromebook Inventory | Originally Q2 2025; committee requested it be moved up | Will sample high school and intermediate in each feeder; expand if issues found |
| Construction Audit | Summer 2025 | Annual summer audit |
| Activity Fund Audits | Ongoing | Shifting focus from high schools (fewer issues) to elementary schools that haven't been audited in a long time; increasing number of audits |
Key Discussion Points:
- Chromebook Inventory: A committee member requested moving this up from Q2 due to emails/concerns received. Internal auditor agreed to work with staff to accommodate, noting HR audit has a specific timing window.
- Activity Fund Recurring Issues: Committee noted recurring issues at elementary level. Dr. Null explained the district historically only audited when there was a change of principal/secretary. They've learned that even with training, you must test and verify — erroneous practices perpetuated at schools with long-tenured staff. The 2024-25 plan prioritizes elementary schools that haven't been reviewed in the longest time. Additionally, the changing financial landscape (Cash App, PayPal, GoFundMe) means the finance manual must be updated to remain relevant.
- Co-Sourcing Funding Clarification: Dr. Null clarified that the Weaver co-sourcing arrangement does not represent additional cost — money was reallocated from a budgeted internal audit staff position to a consulting budget, allowing the district to bring in specialized experts (IT, HR) as needed rather than hiring a generalist auditor.
Vote:
- Motion made to approve the 2024-2025 Internal Audit Plan as presented, with the flexibility to move the Chromebook inventory audit up if possible, and with the understanding that the budget process audit scope will be further refined.
- Seconded.
- Vote: Passed unanimously.
Item 5: Review Internal Audit Schedule for Fiscal Year 2023-2024
Status Updates on Current Year Audits:
- Campus Activity Fund Audits: On track; all will be completed by October 1 deadline
- Field Trip Audit:
- Over 5,300 field trips per year, exceeding $1 million annually
- Audit was requested by district staff due to the complexity
- Findings: Trip tickets frequently had incorrect or missing information; funds not being encumbered within 30 days due to backlogs and inefficiencies
- All internal money — not costing the district additional funds, but efficiency improvements needed
- Sample size: 50 tickets across different schools, fund types (activity funds, general funds), and trip types (athletic, choir, etc.)
- Athletics Ticketing (Hometown Ticketing System):
- No findings — system works well, provides good reports and audit trails
- High School Band and Orchestra Inventory:
- Starts next week across 12 locations (band and orchestra at each high school)
- Bartlett Intermediate Audit: Planned for summer
Item 6: Closed Session — Cybersecurity Risk Assessment
- Committee entered closed session at 8:41 a.m. under Texas Open Meetings Act sections 551.074, 551.076, and 551.089
- Purpose: Receive information relating to the district's cybersecurity risk assessment
- Committee returned to open session at 9:37 a.m.
- No action taken in open session regarding closed session items.
Next Meeting
- Wednesday, September 11, 2024 at 7:30 a.m.
Adjournment
- Motion to adjourn made and seconded.
- Meeting adjourned at approximately 9:37 a.m.
Summary of Key Takeaways
1. External review of Planning & Construction found procurement processes to be fair and compliant; several recommendations already implemented including staff training and organizational changes
2. 2024-2025 Audit Plan approved with emphasis on apps security, transportation, Chromebook inventory (expedited), elementary activity fund catch-up audits, and refined co-sourced audits with Weaver
3. Budget process audit scope to be refined after further discussion — committee questioned whether this is a true key risk vs. PEIMS reporting accuracy
4. Current year audits on track — field trip audit revealed documentation and encumbrance timing issues; athletics ticketing system received clean review
5. No bond funds will be used for staff salaries in the current bond program, though it may be considered for future bonds with proper community disclosure
6. Cybersecurity risk assessment discussed in closed session; no public action taken