001Good evening. I'm Mr. Nieto, president of Weslaco ISD Board of Trustees. This special being uh special meeting is being conducted in compliance with the Texas Open Meetings Act. Notice of this meeting has been posted online for at least three business days prior to the meeting date. It is 5:30 p.m. >> [snorts] >> and I will call this meeting to order. I will begin roll call. Mrs. Sustaita? Present. Dr. Jaime? Present. Coach Cuellar? Present. Mr. Ben Castillo? Present. He was going to be online. Is he online yet? Yes. Yes, yes. Oh, there you are. Okay. Mr. Coach Eddie Serna? Present. And Mr. Mark De [music] Los Santos? Present. All right. Let the record reflect that we have a quorum today. Public comments. We have one. Okay. Uh And and they're online? No, they're here. Oh, they're
002here. Okay. Alejandra Meraz? Hello. Please state your name and your address and then Dr. Jaime will read you some uh procedures. Sure. My name is Alejandra Meraz. I'm a resident of Weslaco. And your address? Um I wish to be private. I provided it to the for on the form. You good with that, Mr. Nieto? We're good. We're good. So, uh I'm going to just read a a statement and then and I'll give you the 3 minutes, okay? Sure. Pursuant to the Texas Open Meeting Act, the Board of Trustees may not deliberate on any comment made by a member of the public on a subject that is not included on the agenda posted with notice of this meeting. As per the Texas Attorney General, the scope of board discussion for a subject not part of the
003meeting agenda is limited to only proposal by a board member to place a subject on a future board agenda. Specific factual information or recitation of existing policy may be furnished in response to inquiries, but the board shall not deliberate or decide regarding any subject that is not included on the agenda posted with notice of the meeting. Audience participation at a board meeting is limited to the portion of the meeting designated for that purpose. At all other times during a board meeting, the audience shall not enter into discussion or debate on matters being considered by the board unless recognized by the presiding officer. No public comment presentation shall shall exceed 3 minutes. Any disruptive behavior by any speaker may result in the speaker's removal from participation in the meeting. Please be mindful of using names or
004personally identifiable information as there is no immunity from defamatory comments while participating in public comments. And ma'am, when you start your presentation, I'll start the 3 minutes. Sounds good. I'm ready. So, I am here as a resident of Weslaco, as a parent, and as someone that values education very highly. I When I first heard $14 million were missing, right? It was a great concern. So, I wanted to know what was up, right? A lot of residents are wanting to know what's up with that $14 million. As I did look at the different um meetings that you've had, and I noticed here not many residents are present because we're we're preoccupied, right? With our income, with our family. So, I am here as part of the community. Um $14 million is 16.5% of the budget, right?
005With those $14 million, you could hire teachers and maintain their salary for a year. That's a lot of money. $14 million as we hear in the news, it's insignificant. Oh, the budget, 14 million, a billion. So, for 14 million, sometimes we just let it go. But this is for Weslaco ISD, for our students. This is not something to just write it off, right? So, as I was doing an inve- like, you know, reading and seeing what was going on, I noticed that there's or I'm hoping there's no fraud. It was a clerical error. And while it's not very clear, but our our um community because it's not very well educated what's been going on, we just want to hear the cheese man, $14 million went missing. We have news stations now in your boards, right?
006But it seems to have been a cler- a clerical error. So, I just am here to want transparency. I want clearance, and I want to see the investment that we put into salaries in our Weslaco ISD. Our superintendent signed off for that CFO, right? So, while I hear I heard in some meetings, oh, the CFO's not here. Oh, um had I known these figures, I would have reduced it by half. Who signed it off? Right? I want accountability. While it was an error, it was. I want accountability. I want actions. I want things that help our students. This angers me because I'm a mother. I see a lot of things going into the budget for athletics. We need more money in STEM. And I wish those 14 million went to STEM, right? But now our
007teachers are suffering. How can we retain those good valued teachers? We have I'm so lucky that all my teachers for my kid have been amazing here in Weslaco ISD. I moved to Weslaco from Austin because this was one of the better ISDs. So, and I acknowledge the work that you guys have put into making that and making me choose Weslaco. But moving forward, I want transparency. I want the best from you. Mrs. Sustaita, you're the only one that asked that acknowledged that, and I appreciate that. Mr. uh De los Santos, keep fighting, sir, for the truth. If you do um acknowledge this uh forensic uh audit, please be very transparent, and I know most of you are up to election in '26, so that's going to be very beneficial if you're very transparent. Thank you
008for your time. I appreciate it. >> Thank you very much. Uh let's continue. Uh Mr. Castillo, can we hear you when you if you speak? Or you have Can you hear me? Yes. Can you hear Okay. I can hear you guys. Can you increase the volume a little bit? Can you increase your volume? Me? Yes. I I My volume's all the way up. It might be your volume then. Okay, now I can hear him. Yeah, that's good. >> Okay, I can hear you now. Okay, thank you, sir. All right. All right. Item four, discussion possible action to approve the fee and scope of work for Weaver to conduct a forensic uh financial audit and investigation as requested by Trustee um Mark de los Santos. Uh Dr. Rivera. Uh yes. I you know, guys, I'm ready
009to bring closure. Let's do the investigation. Uh I'm all in favor to the speaker that spoke. I would like to meet with you to explain uh the money the money is not missing. Channel 5 did a very unfair story. As I explained to the board, the 14 million for different reasons, it went to staff. It went to salaries. So, it is not is not lost. There's no fraud. It was again, it was something that happened. I'm not going to go over with you right now with the CFO, but the money Channel 5 again, they really hurt us a lot with the story. It The money is not missing. It's accounted for, and the money went to staff. To our teachers, to our staff, and the raises they received. So again, I'm ready to bring closure.
010Let's do the investigation, and let's bring let's bring to the board, to the community exactly what happened. I'm open I'm open to the investigation, and in fact, I want it now. All right. Mr. Mr. Castillo, may I make a motion? Well, [clears throat] I'd like to say a few words since my agenda item as well. Yeah, but he has a motion already. What? He has a motion. Then in discussion, we'll have that. Well, I know, but I wanted to describe the agenda item and why I requested it though. You can, but cuz of cuz of Robert's Rules, that's all, but Okay. Go ahead, Mr. Castillo. Wait, I move that the board approve engaging uh Weaver and Tidwell uh to perform a limited scope forensic financial review {slash} audit focused solely on the district budgeted and
011actual revenues and expenditures for the two most recent recent completed fiscal years for the purpose of purposes of determining whether there is evidence of fraud, misappropriation, or financial irre- irregularities, and that the board authorize the superintendent to negotiate and execute the engagement letter and related documents on behalf of the district. I further move that the board approve engaging the district's legal counsel, Walsh Gallegos, to conduct an independent investigation into the district's handling and processing of the information in the grievance submitted by an employee who alleged that the chief financial officer's reported financial numbers were inaccurate, including a review of compliance with applicable board policy and procedures, and to provide findings and recommendations to the board, and that the board authorize the superintendent to execute the engagement letter and related documents. All right, so we have
012a motion by Mr. Castillo. I'll second. We have a second by um Mrs. Sustaita. Any discussion? Yes. Okay, I do. Mr. Sustaita, Um I really don't appreciate the fact I wasn't given the opportunity to discuss the agenda and why I wanted to to put this on the agenda, but I requested this agenda item not just to do a limited scope, right? As been suggested. Cuz that's the complete opposite of really what our community needs right here. You have a $14.5 million uh overage on on expenses, right? For salaries of last year that were not disclosed to the board when we approved it, okay? And and what I really wanted to tell you all is that at the May 21st, 2024 board meeting, okay? Where the district was presented last year's budget projections before approving it,
013the chief financial officer presented to the board at 48 minutes and 16 seconds into the meeting, which can be found on YouTube, that there would be a multi-million dollar budget deficit in salaries for the upcoming '24-'25 school year and require the use of millions out of fund balance and savings, and he said that to every single person that's sitting in here. And that was at the August and the May 21st, 2024 meeting. Dr. Rivera in that same meeting presented financial slides to the board at the same at the on the same day at 1 hour, 50 minutes, and 55 seconds, the superintendent presented new revenue streams for last year that would that would pay for salary increases and bonuses and would not impact the fund balance. And this same information was used to convince the
014board, slide three of that presentation on that day, to release 20 additional million dollars from savings for non-critical construction projects outside the bond that the administration wanted. 10 million of those have already been designated this year that we can't return as soon as Dr. Rivera found out what the true status was of the school district, he put the other 10 back, the remaining back, and he canceled projected projects. Two completely opposite presentations on the same day. And critical slides allegedly that neither the CFO, the superintendent, or the whistleblowers, cuz I talked to them, created. As the superintendent stated in the last meeting, he presents what he is given, which is true. I work within the school district. Superintendents hire individuals based on expertise and experience and qualifications. To do a limited audit other than what
015we've already quoted and presented is all I can say it is a tragedy for community. Because they should do they should do a full audit as presented with the quote and interview staff to figure out how we had these critical failures. How did How did we get to this place and we had these critical failures and so we can prevent them again? Because the fact is you have a loss last year. You have a projected salary loss already this year. You already got shown that in December in your budget documentation that wasn't approved, but it was in there. And then you already have also $10 million almost $10 million of construction projects. Because I I want to know why he got Who gave him that information? Cuz it wasn't the CFO cuz CFO presented the
016opposite on that day. He presented you're going to have a deficit and he presented and he presented that you were going to take millions out of the fund balance. And then somebody gave information to Dr. Yvette that he presented with new revenue streams that would cover additional expenses and and surplus funds that were going to pay back $20 that were taken out for construction projects that the administration wanted. Those were not board requested. So it is only fair to the staff. It is only fair to Dr. Yvette and and and also our taxpayers that we approve the Weaver quote as projected. Anything other than that is just your you just have fear of the truth and transparency. That's the complete opposite of what we just heard right there at the podium. Thank you. Any other
017comments? Mrs. Sustaita, I'll start over here with you. Okay. Uh Any discussion? Yes. Uh I agree with Mr. Losantos with the forensic audit. The reason I believe I think that Mr. Um Castillo brought up the lawyers is because we want all sides of the story. We want to know what happened with the finances and the financial problems, which is what we want Weaver uh to focus on. And then we want to know the story behind it. What happened? We want to see the emails. And that's why um a lawyer we want to see if a lawyer can be contracted for this because that will reduce the cost of the Weaver report from $125,000 to maybe a little bit less, but yet we're getting we're still getting uh all the sides of the story, the finances,
018the expenditures, the revenues, and the story of the emails and what happened and having a lawyer investigate into the the whole story behind it. So I I understand Mr. Losantos and I also understand Mr. Castillo's uh Mr. Nieto motion. I don't know if I can comment on here, but there's a conflict of interest with that firm that was that was suggested. So I don't know if we have to go to executive session or do I say that out here in public? Do we have to get the firm that Mr. Castillo suggested or can it be >> he's he the firm that he suggested you can't you wouldn't be able to use cuz it's a conflict of interest. I don't know if you want me to go into detail or you want to take it to
019executive so I can give you the information as well. Mr. Uh Sabuda I said a conflict of interest. I believe there might be a conflict. No. Oh, yeah. But But I'm saying I don't want Do you want to If you want to hear it, I don't want to tell them out in public. Do we go to the back? We can do it here. That's fine. Well, allegedly with the level with the grievances, the level one and level two, where the where the the allegedly the individuals that was that was administration and there was personnel present and there was administration personnel right present. And you also had attorneys there. You had the attorneys at the grievance and you had other attorneys representing the district. So I think that's all I'm going to say as far as
020in public that I think that the suggestion that the Trustee Castillo mentioned isn't going to be able to go through. Can you change your motion? Quick, if Walsh Gallegos has a conflict if I could just change the Walsh Gallegos to Thompson and Horton. Counselor who? Yes. They're a law firm out of Houston that represents school districts all over the state. I think an independent third party this Go ahead. Can you repeat that? Repeat it. I couldn't hear it. Who? Horton. Horton, counselor who? Okay. Based out of Houston? Based out of Houston you said, correct? Yes, sir. Okay. If Walsh can't If Walsh can't do it, if they have a conflict, then let's uh just add to my motion using Thompson and Horton instead. Okay. We'll add that to your motion. Uh discussion, Dr. Jaime? Uh
021yes, you know, I and I agree with with comments that have been made, you know, and and you know, I I can assure you that and the public that nobody nobody here um with administration or any of the board members is happy with with what's happening and and what happened and transpired. Um but as as um you know, we've been um told, you know, that there's not any funds missing, any money money money missing, but you know, I do agree with the fact that this audit, you know, will help help us be transparent and maybe put help put the public at ease with these funds. Um so I I do support it and I and I the support the idea of also um looking into it further with with the proper uh procedures with a
022law firm that can, you know, give us both sides of the story. Like uh Mrs. Sustaita said, you know, a lot of times uh friends have got it, you know, give us just one side one side. Uh I'd like to also hear both sides of the story. Uh so, you know, I I think that's that's going to be a good compromise uh to be transparent to the public. And I you know, I also want to say that I I believe our administration um you know, once we put this aside, I think, you know, you know, we can move forward and continue continue the district in the right direction as as Dr. Yvette has been taking us. So um that's all I have to say for now, but um thank you. Okay. Thank you. Thank you,
023Dr. Jaime. Coach Guerra? Um I'll agree with what uh my fellow trustees are are looking at, you know, we hearing both sides and most the most important thing to the whole to this whole thing is to put the an end to it so that we can move forward and get back on track and and and and focus on what we're really supposed to be doing as student performance and outcomes. So um let's do what we have to do uh in in terms of supporting this concept and then um once we get the the the the results uh take corrective actions and move forward. Thank you, Coach Guerra. And continue on. This is what it's going to be covered by uh the either the law firm >> Yes, cuz I'm confused as to what he I
024know he said limited, but what is he Is he taking away from the quote or No. Uh this is what's going to be covered. Interviews of all relevant staff including leadership that had access to allegation information. >> Okay. Review of emails and supporting documentation from relevant staff. Mhm. Uh verification of accuracy of financial information presented to the board and its sources. And if it met state law and policy requirements. And then the final one, determination of who was responsible for the information provided, when, when, how, and why it was created and presented, and who had knowledge as it was going on. >> Yeah, that's what >> So that's all going to be part of the audit. And of course the attorney. Both also both parties are going to do the same as I described there.
025Yes. So that's where we at right now. Okay. Coach Guerra? No, just like uh Coach Guerra said and you know, I just want to put it behind us and start moving forward. Can cost is is a a a concern. It anywhere, you know, you we had the money that was the question that came up, but cost is always going to be at the forefront. So whatever is going to be more cost effective and and get to the bottom of it let's get it done. Okay. Mr. Castillo, any uh discussion? Yeah, just just clarification. I think you know, what Trustee Losantos wants we it's accomplished with that motion. We get the auditors to review the financials cuz that's what auditors do. Uh tell us if there's any evidence of misappropriation or fraud cuz that's a big
026concern in the community based on that uh KRGV article uh and then get the lawyers to tell us the who, what, when, where, and why. But But it does it confirm? You see there's a difference there. So we the who, what, when, where, and why is going to be done by both parties, right? No, by the attorneys as as I understood. So you're not so cuz Weaver Weaver's a CPA firm but that does forensics. So like I said, they investigate emails etc. and whatnot, but they also have to have [clears throat] access just like our quote. They have to have access to interview staff as to who created things and who emailed things. So you all are saying you're going to take that away from Weaver and you're going to do it cuz we don't
027even know who this firm is. Yeah. Dr. Dr. Yvette is going to follow up with the motion presented by Mr. Castillo. So what is it cuz I'm confused. So is it Is it Is it as I described or is he limiting limiting it? Because the Weaver needs to have access to both. >> Okay. Mr. Castillo. They need to have access to the data and in individuals in question okay so they can do the report. Now if My motion is to have Weaver do the financial review and audit forensic audit. Correct. And for the lawyers to do for the lawyers to do the who, what, when, where, and why. Correct. Well, I'm not going to vote for that. >> Okay. >> Because you're limiting Weaver's access to interview staff, correct? Um I want Weaver just to
028focus on the financials and I want the lawyers to do >> is are they going to interview staff? In my motion that's not contemplated. Right. So he's Yeah, you're removing it from them to interview staff. So but the still the attorneys are going to focus on that area. Uh and of course any any any questions that they're going to have for any of our employees, they they're going to uh uh But my concern is it's an attorney firm that nobody even knows here even knows. Initially you had one attorney firm that was recommended, but there's a conflict of interest. And now they throw another one at you. I mean, come on, guys. Your your community deserves better than that. That's fine. >> Okay. So I won't be I won't be I won't be supporting this
029motion at all. >> Okay. We have a motion on the floor by Mr. Ben Castillo, seconded by Mrs. Ustaite. I I have a question though. The the lawyers are they do they in the scope of their work will they be able to go in there and do what a forensic auditor does and take emails and correspondence that Mr. De Los Santos and the rest of the board would want if a lawyer is hired? That's that's what I would want if it passes. But my thing is it took me eight months just to get a Weaver report Weaver item on the agenda and get quotes and discuss it and to put on the agenda. He's He's mentioned a law firm that you don't even know what it cost, what they're going to charge you per hour,
030or what they're going to charge you for the scope that you're asking for. That's what I'm considering cuz everybody said here we're worried about cost. >> Right. >> But yet you don't even know what they're going to charge you. You haven't even gotten a quote. You don't have any time to delay, and this is really not a game. Cuz you will We will find out You will find out by the end of this year that you're going to be in another multi-million dollar deficit. 14.5 is just the tip of the iceberg. In May and June it it's just inevitable. The facts are there. The whistleblowers know what they're talking about. And the the continuing waste of time is only going to hurt people that trust us and expect us to do what's right and to
031act quickly. Taking these processes here is just is is not in the best interest of our staff, our students, our taxpayers Okay. So we have a We have a motion on the floor Mr. Ben Castillo, seconded by Mrs. Ustaite. Any other discussions? >> I just want to make sure that if we do hire a law firm, they're able to do what Mr. De Los Santos is saying and and get the correspondence and the emails and everything that a forensic auditor would do. Can we assure that they can do that also? That's what my motion I contemplate it would be a board directive if it passed, so they would have to do it. >> What would What would be Like a like No No nobody here knows that firm. You do. So, what is their background?
032What experience do they have in forensic audits? What What What type of data forensics do they have? I mean, what experiences what districts? Weaver works with the largest districts in the state of Texas um consistently because they're known to come in, do their job, give a report, and then they leave. This firm that you're bringing up, what experience do they have? What I mean, cuz you know them, we don't. They They represent school districts all over the state of Texas. They're uh they they have offices in Houston, Austin, and Dallas. Okay. >> They represent Houston ISD, Dallas ISD, Austin ISD, uh and they conduct investigations on behalf of school districts all the time. Okay. And you know, I'm not I don't I don't want them to conduct a forensic audit. I want the forensic audit
033to be conducted by the auditors. >> Well, my my my motion was a forensic audit {slash} investigation. It was both because that's what they do. That's why That's why I put that agenda item there. They could do both. I don't see I don't see why we would deviate. I just don't like the way it looks. You're stripping We already been through Weaver. We know what we get with them. But yet we're saying we'll come crunch the numbers. You all crunch the numbers, but don't talk to staff, and we're going to only have this firm that nobody even knows how much they cost, who they are, what their history is. Um it's just amazing. I just Yeah. It's amazing. Their hourly rates Their hourly rate is $375 an hour. So, at the same rate that most
034attorneys charge, correct? Uh that's industry standard, yeah. Okay. So, we have a motion on the floor uh by Mr. Ben Castillo, seconded by Mrs. Ustaite. I will go individually. Uh you're in favor of? If you're in favor, [clears throat] please say I. Mrs. Ustaite. Uh before I make I vote, I just want to say that as a I'm speaking for myself and I believe that we want the best price for Weslaco ISD, and we want to be transparent. We want everything to be out in the open. We have nothing to hide. Board members, as I was looking at you know, comments social media Board members do not get paid. We do this out of our own free will, out of our time. We take We take time away from our families. We do not receive
035a paycheck from Weslaco ISD. Um everything that's been said about the board and missing money, that's why literacy and mathematics is so important when kids are in school and they're young because we need to understand that what words mean, and missing and unaccounted is not correct. There were errors in the mathematics, and that's why math is so important when you're in school. There were errors in the the the verbiage of missing and unaccounted money cuz it was never missing. It was never unaccounted for. The mathematical errors were there. And it was presented to Dr. Ibarra and the board differently. No one took money away from anybody. So, I just want to make that clear to the community. We do not get paid to be school board members. And literacy and math is very important for
036the news, for us as board members. Um so, I believe the best decision right now, and we can still work on the scope and the price >> Correct. uh with the lawyers and with the forensic auditors and still um you know, ask for exactly what we want. So, I vote yes. Okay. Dr. Hinojosa. I. Uh Coach Cuellar. >> I. Mr. Ben Castillo. I. Coach Cerna. I. Uh Mr. De Los Santos. I just want to say before I vote that you know, the district has the situation that it has, the facts are out as far as the information that we're receiving, and for months we didn't get the proper information. We have whistleblower allegations of manipulation of finances and budgets. You have level one, level two grievances that are actually on paper um that should have
037been acted on and and other things that were required, but at the end of the day I don't think that the search for the truth and transparency to our community needs any type of modification or limitations or stipulations. So, I'm going to vote no. Thank you. >> [snorts] >> And can I just say that I will work with Weaver's motion with both firms and to make sure sure both firms come up with the answers that I need that the board needs, that the community needs. I will work on the scope with both firms. Okay. So, again Yes. And and and the the president votes yes. Now, Dr. Ibarra will follow up and to make sure that you know, systems are in place that the proper accounting was in place cuz that's what Mrs. Ustaite was
038mentioned that the accounting was not properly posted. Like you would have accounts payables, accounts receivables, and then of course you have to they have to balance out. So, the forensic audit and Dr. Ibarra is going to work with both both groups to make sure that systems are in place so that way in the future Mr. De Los Santos had mentioned that a few board meetings ago that we need to do that so that way in the future we're not in that uh thing that we have to do again, right? All right. Any any other Dr. Ibarra? So, motion passes. Adjournment. So moved. It is 6 6:00 and we adjourn this meeting. Thank you.