001You say cheese. Hey, should be good. >> Yeah, I know. Hey Tom, whenever you're ready. >> No doukey. It is 503 and at this time I'm calling the committee of the whole meeting for Monday, February 16, 2026 to order. At this time I'm looking for a motion to approve the agenda. >> That motion. >> Second. >> Motion by Katie, seconded by Paulie. Any discussion? All those in favor say I. I opposed. Moving on. Treasures report. >> Um, at the end of January, there were negative 88.90. Um, I did pay 250,000 on a short term. As of Friday, I off >> that is good to hear. Um, and then under the book camp. >> Yeah, that helps everyone know what those accounts mean. >> Yep. >> Even the playground 76. >> We almost might see that
002grass soup. And then for the referendum, it's a 69 payment for the generator. >> And is the special ed fund just because that's going to get we we have to wait for a payment to come in on that. But that one >> so the special ed at the end of the school >> school year. Yeah. I just don't remember it getting so getting up that >> well and I have to do a grant to in March um >> and then they'll get better towards it. But and then we'll just layer. >> Yeah. Then transferring back into it. Yeah. Click glad to hear that short-term borrowing is getting paid off. That's for sure. Anyone else have anything for Laura at this moment? And moving on to new business. Dan, I don't see him. >> Oh, deferred.
003Sorry. So, on to Katie. CISA review of finances. >> So, again, Cis had offered to come in and do a review of our like business office stuff. Um, and you guys wanted a little bit more information on what they do. And so she gave me this snippet. The scope of the review includes an assessment of the department staffing structure, operational workflows, and service delivery efficiencess. Specifically, the review evaluated will evaluate how well current staffing levels support compliancy, efficiency, and the over overall operational needs of the district. And I was trying to go back into the emails and look at the cost that they had. They I know they told us it was 3 us it was 3 days days >> 800 a day. >> Yeah, 800 a day. That's what the number I was thinking
004and I just didn't have the email there that said it. So, um we could we have not >> Well, they said it was 3 days. >> She said she would take about 3 days to do it yet. >> Yeah. And >> I don't know that that would do us any good. Do you? >> I don't know. Unless they review the audit and help come up with some helpful solutions. >> Um I don't think that they would review the audit portion. They I know they told the audit portion. Could you email her back and ask her that? >> Yeah, it just you can just let me know casually. It doesn't have to be added to a meeting or whatever. >> Absolutely. >> So, that's that's the snippet that she gave me though. >> That's good to
005know. Um I was hoping that it would be in that general direction. Um just cuz I know sometimes it's easy to get redundancy within uh the structures of things and it'd be interesting to know if they could uh what ideas they would have for possibly eliminating such things as that and streamlining. >> That's what I think it would be more of. >> Yeah. So, >> and I I don't think I we know that they're going to say um that we have limited segregation of duties because it's such a small >> situation and that's happened on the other audits where like Northwest Connections and other audits I've been on. That's always the thing that comes up is the segregation of duties and making sure there are eyes on everything. So, I don't we're definitely not alone
006on that. No, but if they could give some ideas or examples, that's the part that could be the most helpful at the end. >> Could you say that again, Tom? Examples of She's trying to get the notes down. >> And just if they could give examples that they might have seen utilized by other districts um that we could maybe get some ideas off of. and they they are contracted into some districts to do some of those job pieces. Um, not that that's what we would need, >> but I think Luck does use them and I can find out more what they do, >> right? >> I was just happen to be in conversation with Corey just casually and he's like, "Yeah, we that's we use CISA." So, I can find out more information on from
007him if you want me to. >> Yeah, that would be great if you could. Well, plus they might have a better idea of what like the state and federal guidelines are allowing more nowadays, too. That could help as well. Thank you, Katie. Really appreciate that. >> Anyone have anything else for Katie? >> Thanks, Katie. >> Uh, audit information. Back to you, Laura. probably have questions. >> Final questions. Um, like I said, the limited segregation of duties. I I have no that happens everywhere. I mean, I >> bigger school districts getting that too. It's like a common thing that they bring up every >> Yeah. Um, some of the and and I noticed that that was repeated as a finding and I'm sure that it will be for eternity just because of the size of our
008district office. Um the other things that stood out to me and I'm going to focus on the repeated findings because those are somewhat concerning to me. Um the material audit adjustments. The cause of that was the district has not established controls to ensure that all accounts are adjusted to their appropriate year-end balances. That's a concern. is he typically adjusts he does like all of our ending balances for >> right and that's where that issue came up I'm assuming with that $150,000 that then you kind of changed it to 50,000 on each of the >> principles and cabins or whatever >> but that was actually advised by him >> I actually had own conversations >> and that to continues to be a big concern because I don't know where that $150,000 is. So that continues to
009be a problem and um and one of the things that it had said management's response was the district will continue to rely on the audit firm to propose adjustments but that proposing adjustments doesn't tell us where the money is and that's where my concern is and I don't think anything crazy happened to it. I just think that it's something that we need to $150,000 is a fair amount of money to want to know where it is >> and and we could have our own policy on how to equal those accounts out at the end of the year as opposed to relying on them. Is that kind of what they're suggesting? >> Sitting in a liability account and it needed to be adjusted to >> Yeah. Their recommendation was the district should continue to evaluate its
010internal control processes to determine um if something else should be implemented. Mh. Um, and then the next one, again, I'm mostly focused on repeated findings because those are the things I don't know how many years they've been repeated and how big of a deal it is. But, um, my next question refers to financial accounting and reporting, financial reporting for federal awards and state assistance, and financial reporting for federal clearing counts data collection form. And my my issue with those is that the causes management does not have the training and skills to prepare the financial statements. And that's where I'm wondering about if CISA can assist with that. >> And I was going to ask him about that because I don't know what more I'm supposed to do. >> Okay. And that was my next thing
011is is there something the board can do to assist with that training and skills because >> always been in there and I don't think to ask him but I would like to know what to do because >> like when I do the grant stuff >> like it's a whole packet. >> Yeah. every time I and I print out the reports for it and I do the budget paperwork >> and I kind of would assume that it's not grant related and the reason I say that is I'm the president of the board for Northwest Family Connections out of Hayward and that is almost entirely grantf funded and the grants are so specific that it has to be on by a penny on everything. >> So, I'm thinking this is outside of grant funding, but if they
012have some recommendation for you or for us to help you, I am very interested in that and in how we can do that >> and and I I have no doubt that you would be willing to to work on some if they had something specific for you. I don't have any doubt that you would do that. Um the next one was the cash re reconciliation procedures and the cause the district did not follow the controls established to maintain the proper monthly bank um reconciliations. The financial statements of the district may include inaccurate information not detected or prevented by the district's staff. And that again is reported as a finding. And that is a pretty big concern to me just because it's saying the district did not follow the controls that are established. >> I don't
013know what controls are. >> Okay. >> I don't know if there's supposed to be like more hands on it because right now it's just me. >> Yes. And the hands-on I think is addressed um on the limited segregation of duties >> and I know in other districts like one will move the reconciling the bank reconciliation and then >> another person will do like the balance sheets, >> okay, >> and that stuff. So, I don't know if that >> and maybe that's how Luck is using CISA >> and maybe >> I mean that would be interesting to know. It would be interesting to compare our audit to theirs because do they have somebody in your position as well >> and they're using CISA? So that would be interesting to me. >> Okay. So they had somebody
014leave >> and they use CISA as their financial person and then they >> interim. >> Yes. And then they hired someone and then they continued to use CISA >> but I don't know what capacity they continue to use them. We were just in passing talking. I'm like oh okay you guys use CISA. So find out I can just ask him what CISO's role is in your >> uh district financial um process and then I can also talk to him if you want me to ask him how they I mean they utilized they filled in for the person that left >> right and that I know that one of CIA's offerings for sure like they will step in and do payroll and do all that. >> Yeah. But I don't know what >> which definitely wouldn't
015help the segregation of duties because it just switches to one person there from one person here. Well, I can just ask him if he can give me a rundown. I I can't promise anything. I don't know what he'll tell me. But >> do we think they might use the same audit? Does do all the schools locally use the same year audit end of year audit person? It's individual. And we've used the same company for >> since he's came back. Yeah, because before that we had CLA. >> Okay. I have >> I think we use two rivers too >> too that are cleared but they really shouldn't be cleared and so >> I'm diligent in working on >> okay and literally I would say the financial aspect is my biggest weakness which is why I pay
016a lot of attention to it because >> I I would like to be more literate in the financial stuff and obvious I'm not I can guarantee you I have never balanced my checkbook that I've had since I was 17 years old. So this, you know, to me it's like, okay, but you know, I'm a round uper, so it always works out. But >> so we typically used to my first five years here, so the auditors would come and do and present the audit. >> But then the board changed over and that kind of went away because I'm interested in continuing to do that. Well, that's it's helpful to have some coming. It does. And now what happens with directors is he >> we would prefer it. >> Yeah. I didn't even know that was an
017option. >> I actually um called him on Friday, but he was on vacation, so he >> of course. >> Okay. Okay. Yeah. I would I'm very curious as to what he means in some of the things as far as the cause. >> You know, I I just is it something that we can clear up so that they're not there? And I also know that their job is to look for something and that that's what they do and that's okay. And none of these were like considered a deficiency because that's not their role. I mean, they stated that in their letter. That's not their role. So, I I guess I found it really interesting. Um, and I don't know what like the anticipated completion dates were on the 2024 ones. On the 2025 ones, I see
018that it has um for one of the findings, the material weakness and internal control, it has an anticipated resolution date by June 30th, 2026. So, I don't know if that was that was on the 2025 material audit adjustments. Um, and it was the material misstatements resulted from deficiencies in the district's internal controls over financial reporting, including inadequate review and reconciliation. And then the manager's response was that it would rely on their expertise, but then the anticipated completion date, which I'm assuming is what Kevin puts in. Is that correct, Kevin? It's probably just procedural to put in a date to fix it on, but >> Well, it's not. It's not on some of the other ones that I saw. >> Oh, but maybe last year's looks the same and they just changed >> because many of
019the anticipated completion dates say it will not completely resolve. >> Oh, >> and this one specifically has a date. So that makes me wonder if they gave you something specific as far as like a workshop or a worksheet or a statement or something because how will that be resolved if you don't know how? >> Yeah. >> And that's on page 81. And it it it stood out to me that that one um and then several said it will not completely resolve. It will not completely resolve. It will not completely resolve. And then there's another one. >> Usually that's the reason being. >> Yeah. And then then there's another one. Material weakness in internal control over financial reporting. This fighting will be resolved by June 30th, 2026. How will that be resolved? I don't understand. And
020that's on page 85. And I'm I'm just trying to understand these because I don't understand. You know what I mean? I'm not trying to place any blame or I just would like to know how we can do it better and and move on. >> But if it continues to say like the ones did from 2024 that they're all um continued that that's not good. We don't want to be in that position. So one, two, three, four, five, six from 2024 are repeated findings. Six findings. That's that doesn't seem right. So, and maybe if if they were here and we could chat with them, they could explain that better >> because they did the report obviously. Mhm. >> So, I guess I those are my concerns and if he could possibly meet with us. >> Okay.
021Good. >> Yeah. >> Um that would be helpful. >> Or if if the board doesn't want to necessarily I and he could be here during the day someday, I would be willing to come in and speak with him >> um with one of you present of course just to to kind of get a better feel for it. >> I think it'd be great information for all the board members though. >> I do too. I personally how to present. I mean, it wasn't the most exciting time board stopped >> because we would schedule them every year and then it got to a point where >> the best thing about them were that we went to the Dells and had a weekend where we would you know what I mean? It wasn't it it got um very
022tedious especially when you first start and you don't know like for me. So, I'm glad that I have seen audit reports before. Otherwise, these 85 pages would have been nothing but mumbo jumbo. So, I literally skipped back to like page 70. I read their letter and then I skipped back to the findings. >> So, the other thing that's happened I I think the audio report we usually don't get until pretty late, right? >> Yeah. This was dated in December. >> Yeah. So it thought it was late because their final report DPI isn't due until December. >> And and I can tell you that our audit for Northwest Family Connections was in July, I believe, and we just got I just signed off on their report last week. So I know that that's the case. I
023don't it takes them forever. >> Yeah. And I don't know how many agencies they do when they do 85 page reports. So, um, but yeah, same thing. There's, and that's why I had asked last month because I was anticipating that it would be coming. >> So, but the date was December 23rd. Well, then there's Christmas break and then there's So, if I mean, this is as timely as we could be in reviewing it out, no fault of anybody, >> but thank you. Yeah. Yeah, I think definitely having them come and present would be extremely helpful. Um, and I think uh the some of the deadlines might coincide just with the end of the school year and hoping that things will be summed up and fixed by the end of the school year. That's why they
024put the June 30th date on some of these. >> Yeah. If they could just say how exactly that's going to be resolved. If there's something that has to be done on our end to resolve that, we obviously need to know that. >> Yeah. >> It can't just be a statement on a >> end of a piece of paper. >> Yeah. And I think it's just potentially not enough questions are being asked of or being pointed us in the right direction of resolving some of these issues, unfortunately. And it's just being we just keep plugging along and just wait to get dinged on it at the next time, which we shouldn't be doing, >> right? And and we shouldn't keep getting the repeated findings >> without a resolution, without them helping us with that. >> That
025meeting? >> Yeah, I would say so. Maybe next >> if we could. >> We know if next month's come. We don't know yet. >> We'll know on next Monday. >> Typically the the third. >> Yeah, I think that's something very if it's the 16th. I'm going to tell. >> I have it on my calendar for the 16th as a holding place. >> No, the four beings the 23rd. >> Yeah, the 16th tentatively. >> Yeah. But yeah, if you could schedule it for then that'd be great. >> I do believe I could attend virtually though. Okay. In fact, I would prioritize it. So, all right. Thank you for the info, Laura. Look forward to hearing more about that. Um, if we don't have anything else, I'm looking for a motion to adjurnn. >> I would make
026a motion to adjurnn. >> We have a motion by Paulie, seconded by Katie. All those in favor say I. I. Opposed. We are adjourned. Thank you very much all.