{
  "id": "2024-09-10_audit_committee",
  "meeting_date": "2024-09-10",
  "meeting_type": "audit_committee",
  "meeting_types": [
    "audit_committee"
  ],
  "title": "Conroe ISD Board Meeting — September 10, 2024",
  "date_display": "September 10, 2024",
  "type_display": "Audit Committee Meeting",
  "types_display": [
    "Audit Committee Meeting"
  ],
  "item_count": 0,
  "has_agenda": false,
  "has_notes": true,
  "pdf_filename": null,
  "packet_url": null,
  "generated_at": "2026-06-18T19:45:21.361478Z",
  "highlights": "",
  "sections": [],
  "agenda_breakdown_md": "",
  "meeting_notes_md": "# Conroe ISD Board Meeting — 2024-09-10\n*Audit Committee Meeting — Unofficial Notes*\n*Based on auto-generated transcript. Not an official record.*\n*Generated 2026-03-28 17:21 UTC*\n\n---\n\n# Unofficial Meeting Notes\n## Conroe ISD Audit Committee Meeting\n### September 10, 2024 — Regular Meeting\n\n> **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.\n\n---\n\n## Call to Order\n- Meeting called to order at **7:33 AM** by Chairman Chase.\n- A quorum of members was confirmed present.\n\n---\n\n## Item 1: Citizen Participation\n- **No citizens signed up to address the committee.**\n\n---\n\n## Item 2: Approval of Minutes — May 8, 2024 Audit Committee Meeting\n- **Motion to approve:** Made and seconded.\n- **Vote:** Passed unanimously (no opposition noted).\n\n---\n\n## Item 3: Investment Review and Results Update\n\nPresented by **Mr. Scar** (district financial staff).\n\n### Investment Strategy\n- Strategy remains unchanged; primary focus is on **safety of principal**.\n- Current operating funds are invested in:\n  - State investment pools\n  - Woodforest National Bank\n  - Commercial paper\n  - Short-term government securities (maturity ≤ 1 year)\n- **$50 million** of general fund unassigned fund balance is managed by **TCG Investment Advisors** in a **36-month investment ladder**.\n- 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.\n- Fed funds rate projected to reach approximately **3% by end of 2025**.\n\n### General Fund Portfolio (as of 8/31/2024)\n- **Total: ~$835 million** (across categories)\n  - Woodforest National Bank (money market): ~$80.6 million\n  - Municipal bonds: ~$1 million\n  - State pools: ~$49.2 million\n  - Treasury securities: ~$19.1 million\n\n### General Fund Interest Revenue\n- **FY 2024: $2.7 million**\n- Anticipated to decline as interest rates fall.\n\n### Combined Portfolio (All Funds — as of 8/31/2024)\n- **Total: $839.4 million**\n  - State pools: $76.3 million\n  - Municipal bonds: $1 million\n  - Money market: $80.6 million\n  - Agencies: $32.4 million\n  - Treasury securities: $19.1 million\n- **Weighted average maturity:** 33 days\n- **Yield:** 5.37%\n- **Benchmark (90-day T-bill):** 4.965%\n- Portfolio has surpassed the benchmark since pre-pandemic.\n\n### Discussion\n- 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).\n- 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.\n\n---\n\n## Item 4: Approval of Conroe ISD Investment Policy\n\n- District requesting the committee **recommend approval** of the investment policy to the full board.\n- Four standard annual items will go to the full board next Tuesday:\n  1. Investment policy\n  2. Sources of instruction\n  3. List of qualified brokers\n  4. Designated investment officers\n- **No changes from last year's policy.**\n\n**Motion to approve recommendation to full board:** Made and seconded.\n**Vote:** Passed unanimously (no opposition noted).\n\n---\n\n## Item 5: Status of 2023–2024 and 2024–2025 Internal Audit Plans\n\nPresented by the district's internal auditor.\n\n### 2023–2024 Audit Plan — Complete\n\n#### Field Trips Audit (completed February 2024)\n- **Key finding:** Internal billing process was extremely inefficient/slow.\n- **Resolution:** Transportation department (Mark Morel) added a component to the **BusHive app**, reducing billing turnaround to approximately **two weeks**.\n\n#### Band Instrument Inventory Audit\n- Highlighted as a major success story.\n- In **2021**, the initial audit found **~300 instruments missing worth ~$450,000**.\n- As of current audit: **only 2 instruments missing** out of approximately **2,000+ instruments**.\n- Credit given to **Dr. Horton** and band leaders for implementing controls and requiring **annual inventory** with **principal sign-off**.\n- The auditor noted the most impactful change was **assigning ownership/responsibility to campus principals**.\n- Junior high and intermediate band inventory audits planned for **October–November**.\n\n#### Bartlett Intermediate Construction Audit\n- **No findings.** Construction team praised for excellent controls and stewardship of bond funds.\n\n#### Print Shop Audit\n- **One recommendation:** Improve inventory process.\n  - Observation: Only two staff members conducting annual inventory with no segregation of duties.\n  - Recommendation: Use **two sets of two people** for counting, with the print shop manager overseeing.\n- **Additional observation:** Orders were being combined, making auditing difficult. Recommended separating orders for clearer documentation.\n\n### 2024–2025 Audit Plan\n\n#### Elementary Campus Activity Fund Audits\n- Major focus this year on **elementary campuses**, many of which haven't been audited in **5–6 years**.\n- Previous practice was to audit when a principal or secretary changed; some campuses with long-tenured staff haven't been reviewed.\n- Elementary activity fund balances estimated at approximately **$100,000 or less** (compared to high schools at **$1 million+**).\n- Noted as a **data-led decision** based on prior year observations.\n\n#### Procurement Audit\n- Currently in progress (final weeks).\n- Focus on compliance with rules, regulations, policies, controls, bids, and advertising requirements.\n\n#### Additional Planned Audits for 2024–2025:\n1. **Junior High/Intermediate Band Inventory** — October/November\n2. **Transportation Audit** — General controls, parts inventory, asset security (bus security)\n3. **HR Hiring and Retention** (after January) — **Weaver** providing subject matter expert support\n4. **Application Security and Controls** (major IT audit for the year) — **Weaver-led**\n   - Will sample approximately **25 of the largest apps** from an estimated 50–200\n   - Sampling criteria: economic impact, number of users, mix of third-party and internally hosted\n   - Will include **SOC 2 report** review and ongoing vendor compliance monitoring\n   - Committee member requested scoping in:\n     - Evidence of **ongoing SOC 2 report management** (not just during audit)\n     - At least **one decommissioned/inactive app** to verify proper data handling and access termination\n5. **Chromebook Inventory**\n6. **Q2 Construction Audit** (summer)\n\n### Extended Discussion: Communication Apps\n- Significant committee discussion about the proliferation of communication apps used across campuses.\n- Concern raised about **parents receiving communications from multiple platforms** without clarity on which child/teacher/school the message relates to.\n- **Sarah** (Communications Department) reported:\n  - The district has been examining ways to **condense communication tools**.\n  - An **RFP is being prepared this month** to explore new communication solutions.\n  - Challenge: solutions must be user-friendly for teachers or adoption will be low.\n  - Need to maintain legally required documentation of communications.\n- District has tightened controls on **official app adoption**, requiring:\n  - Instructional vetting through Teaching & Learning\n  - Technology vetting through IT (safety, compliance, privacy)\n- Acknowledged that **unofficial or privately-purchased apps** may still exist outside the formal process.\n\n---\n\n## Item 6: Committee Meeting Dates for 2024–2025\n\nUpcoming audit committee meeting dates confirmed:\n- **January 15, 2025**\n- **May 7, 2025**\n\n---\n\n## Adjournment\n- **Motion to adjourn:** Made and seconded.\n- Meeting adjourned.\n\n---\n\n*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.*"
}