{ "id": "2025-09-10_audit_committee", "meeting_date": "2025-09-10", "meeting_type": "audit_committee", "meeting_types": [ "audit_committee" ], "title": "Conroe ISD Board Meeting — September 10, 2025", "date_display": "September 10, 2025", "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": "2026-06-18T19:45:21.805431Z", "highlights": "", "sections": [], "agenda_breakdown_md": "", "meeting_notes_md": "\n\n\n\n\n\n# Conroe ISD Board Meeting — 2025-09-10\n*Board Committee Meeting — Unofficial Notes*\n*Based on auto-generated transcript. Not an official record.*\n*Generated 2026-03-28 18:59 UTC*\n\n---\n\n# Unofficial Meeting Notes\n## Conroe ISD Audit and Investment Committee Meeting\n### September 10, 2025\n\n> **Note:** These are unofficial notes based on an auto-generated transcript. They may contain errors in names, spellings, or details. Official minutes should be consulted for the authoritative record.\n\n---\n\n## Meeting Called to Order\n- **Time:** 7:32 a.m.\n- **Quorum confirmed** and notice posted in accordance with the Texas Open Meetings Act.\n- **No public comments** were registered.\n\n---\n\n## Item 2: Approval of Minutes from May 7, 2025 Audit Committee Meeting\n- **Motion made and seconded.**\n- **Vote:** Approved unanimously (no opposition noted).\n\n---\n\n## Item 3: Investment Review and Results Update\n**Presenter:** Ms. Westerrip\n\n### Key Highlights:\n- **Investment strategy remains unchanged** — primary focus is safety of principal.\n- Current operating funds are invested in state investment pools, Frost National Bank, commercial paper, and short-term government securities (one year or less).\n- **$50 million** of general fund unassigned fund balance is invested with Hub Investment Partners in a **36-month investment ladder** (primarily CDs, FDIC-insured at $250,000 increments).\n\n### General Fund Portfolio (as of August 2025):\n- **Total value:** $220.5 million\n - Agency funds: 9.3%\n - Money market funds: $84.4M (38.3%)\n - State pools: $81.2M (36.9%)\n - Treasuries: $34.3M (15.5%)\n- **Interest revenue for 2025:** $10.8 million (slight decline from 2024 due to falling interest rates)\n\n### Combined Investment Portfolio (all funds, including capital projects and debt service):\n- **Total portfolio:** Over **$1 billion** (noted as likely the highest ever for the district)\n- Weighted average maturity: 35 days\n- **Portfolio yield: 4.42%** vs. 90-day T-bill benchmark of 4.01%\n- **District continues to outperform its benchmark.**\n\n### Discussion:\n- Committee members asked about the decline in yield from August 2024 to 2025. Ms. Westerrip explained this reflects generally declining interest rates, though the 36-month ladder locks in higher rates, helping outperform the T-bill.\n\n---\n\n## Item 4: Consider and Approve CISD Investment Policy\n**Presenter:** Ms. Westerrip\n\n- The investment policy is required for annual approval per Texas Government Code Chapter 2256.\n- This item, along with standard investment program resolutions, will be presented individually to the full board at the following week's meeting.\n- **Motion made and seconded** to recommend the investment policy to the full board.\n- **Vote:** Approved unanimously (no opposition noted).\n\n---\n\n## Item 5: Status of 2024–25 and 2025–26 Internal Audit Plans\n**Presenter:** Mr. Ryan Hayden, Internal Auditor\n\n### Staffing Update:\n- The previous internal audit associate (who handled activity fund audits and PTO oversight) retired.\n- **Laura Davidson** was hired as the new internal audit associate. She has strong PTO experience and has completed her first activity fund audit (Conroe High School — report expected the following week).\n\n### 2024–25 Audit Plan — Completed/Status:\n\n#### Activity Fund Audits:\n- Remaining unfinished audits are all elementary schools (lowest risk due to smaller dollar amounts).\n- High school audits are done every other year; they are the highest priority due to larger funds.\n- Unfinished elementary audits will be addressed during 2025–26 and 2026–27.\n\n#### Chromebook Inventory (5 campuses):\n- **Results:** Approximately **98% accuracy** across campuses inventoried.\n- **515 devices** had inventory errors, primarily related to devices not returned or swapped out but not removed from records.\n- **Grand Oaks** received a sampling rather than a full inventory due to its size.\n\n**Significant Discussion — Chromebook Shortages at Grand Oaks:**\n- **Board Member Odenweller** raised concerns about Chromebook shortages at Grand Oaks High School, particularly in English departments, based on extensive parent and teacher feedback.\n- **Dr. Lambert (Technology)** provided an extensive update:\n - Since the initial audit, approximately **two-thirds of district campuses** have been fully re-inventoried (all technology, not just Chromebooks).\n - Grand Oaks has been completed; all high schools are expected to have verified inventories **by end of that week**.\n - **1,500 Chromebooks are in stock** and ready for deployment.\n - Deployment to high school classrooms expected to begin the following week, once inventory verification is complete.\n - **Historical context:** Campuses had been conditioned to hoard broken devices for one-to-one exchanges, creating a backlog. The district is shifting to a new model — assigning devices to classrooms and handling repairs centrally.\n - **Approximately 2,000 Chromebooks** are in need of repair/triage. The district has contracted with an external repair company to supplement the three in-house repair staff. Recycle funds will help sustain the repair program.\n\n#### Construction Audit — Flex 24:\n- **Complete. No findings.**\n- Mr. Hayden noted only a $2 discrepancy in $30 million, praising PNC's financial controls under Easy (the construction management firm).\n\n#### PTO Manual Update:\n- Mr. Hayden personally revised the PTO manual, reducing it from **80 pages to 40 pages** by removing duplications and reorganizing content.\n- The revised manual is **available online**.\n\n### 2025–26 Audit Plan:\n\n| Audit | Timing/Notes |\n|---|---|\n| **Activity Fund Audits** | High schools and intermediates this year; elementaries next cycle |\n| **White Fleet & Police Vehicle Inventory** | Currently underway (vehicles, plates, VINs); buses to be done in summer |\n| **Police Department Audit** | Next month — general operations, training, evidence processing, evidence room security, vehicle inventory |\n| **Child Nutrition** | Q1 2026 — cash controls, inventory controls, regulatory compliance |\n| **Transportation Follow-up** | Follow-up on prior year's audit findings and management responses |\n| **Band Instrument Inventory** | May 2026 |\n| **Network/IT General Controls (ITGC)** | Typically begins February; last done ~2021 with follow-up the next year |\n| **PNC Construction Audit** | Summer 2026 (specific project TBD after first of year) |\n| **Bus Inventory** | Summer 2026 |\n\n### Significant Discussion Topics During Audit Plan Review:\n\n#### Police Vehicle Decals/Branding:\n- Chairman Dungan requested that the police vehicle audit include a **line item tracking how many vehicles have been fully updated** with new decal packages (including the \"In God We Trust\" stickers), the timeline for the fleet swap-out, and future projections.\n- Mr. Hayden agreed to add this to the scope.\n\n#### Police Department — Physical Fitness:\n- A committee member asked whether physical fitness/capabilities would be part of the police audit. Mr. Hayden clarified the scope focuses on **police training compliance**, not physical fitness standards.\n\n#### Transportation Routing Efficiency:\n- Committee members expressed strong interest in **routing efficiency**, noting multiple board inquiries since November about this topic.\n- **Mr. McCord (Deputy Superintendent)** provided significant context:\n - CISD is **top 5 in the greater Houston area** (compared against ~18–20 districts including Katy, Cy-Fair, Humble) for cost-per-mile efficiency in both regular and special transportation.\n - The district drives **over 7 million miles per year** with buses making **six runs daily** (three morning, three afternoon), far more than typical districts.\n - Current routing software is being **sunsetted**; new software selection is critical to district operations and reimbursement documentation from the state.\n - **Key factor affecting efficiency:** The board-approved walk-to-stop distances (currently ~1 mile at all levels). Most districts use 2 miles. Changing this standard would significantly impact routing, timing, and capacity.\n - Committee members requested the routing efficiency data be **sent to them**.\n\n#### Demographic/Growth Concerns:\n- **Mr. McCord** discussed significant growth and capacity concerns in several areas:\n - **Grand Oaks High School:** Currently ~200 students below PASA projections but still very crowded. Projected for ~5,600 students by 2032. A **9th grade campus (1,200 capacity)** is being built, providing a buffer but not a long-term solution. Current 9th grade enrollment is 1,024.\n - **Bartlett Elementary:** Over its 950-student capacity in only its second year; rapid growth from Silverthorn, Seattle, and Pineacre Trails developments. District owns 40 acres at Carter Ranch for potential future relief.\n - **Patterson Elementary:** Significantly over capacity.\n - **San Jacinto Elementary:** Small campus with Arriva development incoming.\n - **East side of Grand Oaks:** Extensive undeveloped land with Townsend Road extension planned, connecting to 99 and extending south. Rancho recently sold property in the area. A second high school is likely needed eventually.\n- **Total district enrollment:** 72,785 — slightly below projections overall, but with significant variation by area.\n- Committee discussed whether a new demographic study is needed. Mr. McCord noted the 2022 PASA study was designed for a 5–10 year window (projections through 2032–33) and was part of a four-year bond plan. A targeted query to PASA could be an alternative to a full new study.\n\n#### Software Inventory/Efficiency Audit:\n- **Chairman Dungan** strongly advocated for a **software inventory and efficiency audit** — examining duplication, unnecessary subscriptions, potential consolidation, and bulk purchasing opportunities.\n- This was described as a two-year-plus priority for the chairman.\n- **Dr. Lambert** noted this is different from last year's software controls audit (which focused on access permissions and security controls, not usage efficiency or duplication).\n- Dr. Lambert indicated that **both an ITGC audit and a software efficiency audit involve the same staff**, making it infeasible to do both simultaneously at full scope. He proposed working with Mr. Hayden to develop a plan that addresses both, potentially scaling back ITGC to accommodate the software review.\n- Mr. Hayden noted that the **Weaver IT audit planning meeting** typically occurs in **mid-October**.\n - **Chairman Dungan emphasized the importance of the committee providing input before that planning meeting** — a recurring concern about being consulted after decisions are already made.\n- Committee agreed to **defer specific prioritization** to a future discussion, potentially including incoming Superintendent **Dr. Vinson** and possibly a board workshop.\n- **School Bucks software** was specifically flagged — the $3+ fee charged each time money is added to a student's account was raised as a concern. Ms. Westerrip (or another staff member) noted that School Bucks integrates with the Child Nutrition POS system, so any change would need to consider the full system. The vendor has been increasing fees, and the district has had some success negotiating delays.\n\n---\n\n## Item 6: Committee Meeting Dates for 2025–26\n\n### Additional Meeting — October 2025:\n- Committee agreed to **tentatively schedule an additional meeting in October** (second or third week) to:\n - Allow incoming Superintendent Dr. Vinson to provide input on audit priorities\n - Finalize direction before Mr. Hayden's Weaver planning meeting (moved to last week of October)\n - Revisit software audit vs. ITGC priorities\n- Exact date to be confirmed by end of September.\n\n### Scheduled Meetings:\n| Date | Time | Notes |\n|---|---|---|\n| **~October 15–23, 2025** | 9:00 a.m. | Tentative additional meeting (date TBD) |\n| **Wednesday, January 14, 2026** | 9:00 a.m. | Regular meeting |\n| **Wednesday, May 6, 2026** | 9:00 a.m. | Regular meeting (Weaver presentation) |\n\n### Meeting Time Change:\n- Committee agreed to **shift the standing meeting time from 7:30 a.m. to 9:00 a.m.** going forward, based on feedback from both committee members and staff.\n\n---\n\n## Meeting Adjourned\nNo additional business items were raised.\n\n---\n\n## ⚑ Items to Watch\n\n- **Chromebook shortages at Grand Oaks High School** — Board Member Odenweller raised concerns based on parent and teacher feedback. ~2,000 devices need repair; deployment of 1,500 in-stock Chromebooks was pending. Constituents may wish to follow up on whether deployment was completed as planned.\n- **Transportation routing software sunset** — Current software is being retired and a replacement must be selected. This is critical to district operations and state reimbursement documentation; no replacement has been announced yet.\n- **Walk-to-stop distance policy** — The board-approved ~1-mile standard (vs. the 2-mile norm used by most districts) significantly drives transportation costs and routing complexity. Any policy change would have broad impact on families.\n- **School Bucks fees** — The $3+ fee charged per transaction when families add money to student accounts was flagged as a concern. No resolution was reached; constituents should watch for any future action.\n- **Software inventory/efficiency audit** — Chairman Dungan's multi-year priority to audit software duplication and unnecessary subscriptions has not yet been formally scheduled. The committee agreed to revisit priorities before the Weaver planning meeting in late October.\n- **Overcapacity campuses** — Bartlett Elementary, Patterson Elementary, and San Jacinto Elementary were all identified as significantly over or near capacity, with continued residential development expected to worsen conditions. No relief plan beyond the Carter Ranch land parcel was announced.\n- **Grand Oaks High School long-term capacity** — Projected enrollment of ~5,600 by 2032. A 9th grade campus is under construction but acknowledged as insufficient for the long term; a second high school may eventually be needed.\n- **Incoming Superintendent Dr. Vinson's role in audit priorities** — The committee deferred final decisions on the 2025–26 audit plan pending Dr. Vinson's input at a tentative October meeting." }