September 10, 2024 — Audit Committee Meeting
Conroe ISD Board Meeting — 2024-09-10
Audit Committee Meeting — Unofficial Notes
Based on auto-generated transcript. Not an official record.
Generated 2026-03-28 17:21 UTC
Unofficial Meeting Notes
Conroe ISD Audit Committee Meeting
September 10, 2024 — Regular Meeting
Note: These are unofficial notes based on an auto-generated transcript and may contain errors or omissions. They are not a substitute for official minutes.
Call to Order
- Meeting called to order at 7:33 AM by Chairman Chase.
- A quorum of members was confirmed present.
Item 1: Citizen Participation
- No citizens signed up to address the committee.
Item 2: Approval of Minutes — May 8, 2024 Audit Committee Meeting
- Motion to approve: Made and seconded.
- Vote: Passed unanimously (no opposition noted).
Item 3: Investment Review and Results Update
Presented by Mr. Scar (district financial staff).
Investment Strategy
- Strategy remains unchanged; primary focus is on safety of principal.
- Current operating funds are invested in:
- State investment pools
- Woodforest National Bank
- Commercial paper
- Short-term government securities (maturity ≤ 1 year)
- $50 million of general fund unassigned fund balance is managed by TCG Investment Advisors in a 36-month investment ladder.
- With the Federal Reserve expected to begin rate cuts (25–50 basis points at next meeting), the district's locked-in higher-yield investments in the ladder will continue to benefit the district as market rates decline.
- Fed funds rate projected to reach approximately 3% by end of 2025.
General Fund Portfolio (as of 8/31/2024)
- Total: ~$835 million (across categories)
- Woodforest National Bank (money market): ~$80.6 million
- Municipal bonds: ~$1 million
- State pools: ~$49.2 million
- Treasury securities: ~$19.1 million
General Fund Interest Revenue
- FY 2024: $2.7 million
- Anticipated to decline as interest rates fall.
Combined Portfolio (All Funds — as of 8/31/2024)
- Total: $839.4 million
- State pools: $76.3 million
- Municipal bonds: $1 million
- Money market: $80.6 million
- Agencies: $32.4 million
- Treasury securities: $19.1 million
- Weighted average maturity: 33 days
- Yield: 5.37%
- Benchmark (90-day T-bill): 4.965%
- Portfolio has surpassed the benchmark since pre-pandemic.
Discussion
- A board member asked whether falling interest rates would positively impact the district's next bond sale. Staff confirmed that rates are moving in a favorable direction. The next sale is $600 million — the largest of the series (previous sale was $595 million).
- Ms. Garza asked clarifying questions about the bar graph categories and whether the portfolio composition would revert to 2020/2021 patterns as rates decline. Staff explained the Woodforest allocation (offering 90-day T-bill + 25 basis points) will remain attractive, so the composition may look similar.
Item 4: Approval of Conroe ISD Investment Policy
- District requesting the committee recommend approval of the investment policy to the full board.
- Four standard annual items will go to the full board next Tuesday:
1. Investment policy
2. Sources of instruction
3. List of qualified brokers
4. Designated investment officers
- No changes from last year's policy.
Motion to approve recommendation to full board: Made and seconded.
Vote: Passed unanimously (no opposition noted).
Item 5: Status of 2023–2024 and 2024–2025 Internal Audit Plans
Presented by the district's internal auditor.
2023–2024 Audit Plan — Complete
Field Trips Audit (completed February 2024)
- Key finding: Internal billing process was extremely inefficient/slow.
- Resolution: Transportation department (Mark Morel) added a component to the BusHive app, reducing billing turnaround to approximately two weeks.
Band Instrument Inventory Audit
- Highlighted as a major success story.
- In 2021, the initial audit found ~300 instruments missing worth ~$450,000.
- As of current audit: only 2 instruments missing out of approximately 2,000+ instruments.
- Credit given to Dr. Horton and band leaders for implementing controls and requiring annual inventory with principal sign-off.
- The auditor noted the most impactful change was assigning ownership/responsibility to campus principals.
- Junior high and intermediate band inventory audits planned for October–November.
Bartlett Intermediate Construction Audit
- No findings. Construction team praised for excellent controls and stewardship of bond funds.
Print Shop Audit
- One recommendation: Improve inventory process.
- Observation: Only two staff members conducting annual inventory with no segregation of duties.
- Recommendation: Use two sets of two people for counting, with the print shop manager overseeing.
- Additional observation: Orders were being combined, making auditing difficult. Recommended separating orders for clearer documentation.
2024–2025 Audit Plan
Elementary Campus Activity Fund Audits
- Major focus this year on elementary campuses, many of which haven't been audited in 5–6 years.
- Previous practice was to audit when a principal or secretary changed; some campuses with long-tenured staff haven't been reviewed.
- Elementary activity fund balances estimated at approximately $100,000 or less (compared to high schools at $1 million+).
- Noted as a data-led decision based on prior year observations.
Procurement Audit
- Currently in progress (final weeks).
- Focus on compliance with rules, regulations, policies, controls, bids, and advertising requirements.
Additional Planned Audits for 2024–2025:
1. Junior High/Intermediate Band Inventory — October/November
2. Transportation Audit — General controls, parts inventory, asset security (bus security)
3. HR Hiring and Retention (after January) — Weaver providing subject matter expert support
4. Application Security and Controls (major IT audit for the year) — Weaver-led
- Will sample approximately 25 of the largest apps from an estimated 50–200
- Sampling criteria: economic impact, number of users, mix of third-party and internally hosted
- Will include SOC 2 report review and ongoing vendor compliance monitoring
- Committee member requested scoping in:
- Evidence of ongoing SOC 2 report management (not just during audit)
- At least one decommissioned/inactive app to verify proper data handling and access termination
5. Chromebook Inventory
6. Q2 Construction Audit (summer)
Extended Discussion: Communication Apps
- Significant committee discussion about the proliferation of communication apps used across campuses.
- Concern raised about parents receiving communications from multiple platforms without clarity on which child/teacher/school the message relates to.
- Sarah (Communications Department) reported:
- The district has been examining ways to condense communication tools.
- An RFP is being prepared this month to explore new communication solutions.
- Challenge: solutions must be user-friendly for teachers or adoption will be low.
- Need to maintain legally required documentation of communications.
- District has tightened controls on official app adoption, requiring:
- Instructional vetting through Teaching & Learning
- Technology vetting through IT (safety, compliance, privacy)
- Acknowledged that unofficial or privately-purchased apps may still exist outside the formal process.
Item 6: Committee Meeting Dates for 2024–2025
Upcoming audit committee meeting dates confirmed:
- January 15, 2025
- May 7, 2025
Adjournment
- Motion to adjourn: Made and seconded.
- Meeting adjourned.
These notes are unofficial and based on an auto-generated transcript. They are intended to help the public understand what occurred at the meeting and should not be considered official district records.