001fully support him not being here. So, um All right, Brenda, take it away. >> Good morning. Um according to my section uh of the uh committee meeting today, we're looking at 2.4.10 and 2.4.12 and 2.4.13. So on 2.4.10 10 and 12. Um, as it relates to um myself, it says shall not fail to undertake a full-scale competitive process for the selection of independent auditors pursuant to the most current uh government finance officers association recommendation. Um we are in our final year of audit uh contract with um CLA and we currently are in the process of our uh selection process. We do have an RFP on the street for financial services. It's our bid number 26009. We issued that RFP on 1120. It is actually due tomorrow, the 19th at 10:00 a.m. Um, it was posted
002on Bidnet, which is where all of our solicitations for the district gets posted. Um, and vendors can sign up through bidnet to receive what we call a push notice. So that anytime a district or anybody else would um put some type of solicitation that marries up to what they do in their business, they get a push notice that says that the solicitation is posted. Not a requirement, but it is an option for the vendors to do that. So, as I mentioned, we did post that on 11:20. We had a time frame for Q&A and we answered those questions and I believe we posted the Q&A response on the 12th of December or the 5th, I can't remember, one of those days. So the Q&A was posted on Bidnet as well with any questions that vendors
003had uh in response to that. So it is on the street. Uh it's due tomorrow. We have a selection committee set up to review those responses when we receive them. Uh in our process, we ask that the selection committee or evaluation committee signs a disclosure form that while we're in the audit process that they will not um disclose any information while they're doing their review. And I believe we have scheduled for um January 5th to hand out the responses. I'll get those tomorrow. I'll go through the responses, determine if any of the responses are deemed what we call nonresponsive, which means that they didn't meet some type of criteria that we put in the RFP. We're missing documents from them or whatever. Um, and then once I have done that review, I'll have those available
004to hand out to the committee. We're going to do that on the 5th of January. And then I believe we come back um on the 12th of January to discuss the results of the scoring and we'll make a recommendation for an award on January 12th. at that >> sort of metric that we are going to have on the committee as we review the U. Okay. >> Yes, we do have a scoreeet and um so you'll read the responses and score them according to the score sheet. >> Okay. Um, we try to do we ask you to, um, if you're on the evaluation committee that you read the response and did they meet the requirements or the details of the RFP. It's hard to tell the evaluation committee members not to compare and contrast. Um, but
005we really want you to say, did you meet the requirements of the RFP and score it according to that? So that will be done and then we'll discuss those scoring results on the 12th of January. Once we have that completed, we'll do what we call an intent to award and we'll put that information out on bidnet um so that all vendors are notified that we have made an intent to award and then we enter into contract negotiations with the apparent awarded vendor and that is the process to get this completed. So, we're me we're meeting the district policy and requirements to competitively solicit for the auditors. Um, because of Taber, we don't write a five-year contract, but typically we do a one-year contract with options to renew for four years, four one-year options u based
006on what we can do under Taber. So, that is how we will write that contract. Michael, you have a question? >> Yeah, just a quick question. Um I I've not been part of this step of a process before and I've done some work in past lives with federal government stuff and they kind of have these buckets of there's best value arrangements and there's also like lowest price technically acceptable contracts. Is this more of a best value or are we evaluating more of a lowest price technically acceptable type? >> It is more of a best value. So we have criteria that we put out there that we asked or that we told the vendors here's what we are going to score you on. So price is a excuse me price is a portion of that evaluation
007criteria but it is not the total. So potentially you could award to a vendor that's a higher price because the other criteria behind it supports that price. >> Got it. Thank you. You're welcome. So that is how we do the process for auditing or to get uh our selection of the auditor. Um so I think that meets 2.4.10 and 2.4.12. Are there any questions from anybody else about that? >> Brenda, I was just curious. Um, you said that you'd posted the FAQ and such. Are you getting a lot of questions? How are the questions? Are they >> insightful or benign? >> Um, I think we received maybe uh 15 questions, if that many. Um, a lot of them were process questions. There was some questions about um how the district does um certain things. Uh
008what's And then there was a couple of questions about uh what do we want to see in an auditor? I thought that was kind of a weird question for um >> the answer to that is we don't want to see an auditor. >> There you go. >> I like that. So, um yeah, they were pretty generic. Not a lot of uh I'm looking at them real quick here. Um question about the fees. Um question about the re how they respond to the RFP. You know, is the page limit really the page limit? Yes, it is. Um should the cost proposal be in a separate document? Then again, like I said, some um questions regarding what's the top three qualities you're looking for. Um, also there was a question that said, "Why are we issuing this
009RFP and that response is because district policy says that we will." Um, can the predecessor auditor apply? Yes, they can. Um, some questions about the makeup of our finance team. Are we going to audit remotely or in person? and then some questions about um when does the fieldwork begin. So there were pretty generic questions. There was 12 of them that uh were submitted. So, Brenda, did you don't have to tell me who all asked the questions, but do it does it look like we're going to have a good selection group to >> Well, so Erin Erin had a little bit of a panic because in BidNet, if a vendor pulls down any of the documents that I attached in bidnet, uh, it shows them as somebody that's looked at the bid. We had 37 people,
010companies, whatever, okay, >> look at the, uh, solicitation. So Erin kind of had a little a panic attack and he's afraid we're going to get a ton of responses. Just because they looked at the documents does not mean that they will respond. And in some cases, you can tell by the names of the vendor that pulled it down that >> they're not >> that's not what they do. So 37 is, you know, pretty wild, but um that's how many people looked at at the solicitation. And Robert, we we're expecting um Sorry, I'm losing my voice all of a sudden. We're >> Michael's having an impact on all of us remotely. >> I can't believe Michael got me sick. Like, come on, Michael. >> Um >> look, I work at cyber security firms and let me
011tell you how many jokes have circulated this week because of virus. You know, I'm infecting the office still just because I've got the flu. >> Oh. Um, so we're expecting anywhere from six to nine responses based on just who we know tends to be in the K12 auditing space and can handle a district our size. So, um, you know, not to say we won't get some responses from very small firms who we know are are not they're not going to have the staff to be able to um handle handle the size field work that needs to be done and whatnot, but six to nine is what we're ballparking. >> Thank you. >> Preferably four. Four would be a good number, but just from a review standpoint, right? Are there other questions on that? Okay. So,
012Cararolina, is that >> it says 2.4.13, but I'm looking at that thinking that >> probably does not apply to me. Let me look at it. Yeah. Gina, do you think that that one would have been something for Aaron or or >> I pull it up. Sorry, I didn't pull that folder up. >> No, no, it's okay. Sorry. >> It's got me on there for the interview, too, but I don't know. >> Let me read it really quick. Sorry. >> 2.4.13. 4.13. If not, I can make a note. >> I mean the workbook 2 2.4.13. >> Yes. >> I don't know anything about dispersing >> that. Yeah, that's probably just Aeron's. Um I don't know why it has >> You want me on there? >> I'll go ahead and take it out right now. And then
013if we do you think we need to reschedu this for the next one or >> I'm reading it really quick just to see what >> Yep. >> what was reviewed last year. So last year you guys reviewed the RAC risk documents as it relates to the audit on the process for dispersing funds. And so let me pull that up and I can share my screen. Admittedly I haven't reviewed these since our audit began in the late spring early summer. So let me just pull those up and then I can share my screen. Boom. So, what I'm sharing with you guys is from our fiscal year 25 audit that just ended June 30th. We haven't updated this document. And I'm going to move screens because I'm going to share the screen we're on right now. >>
014Okay. >> Maybe. Sorry, I haven't shared in Zoom in a while. So, Brenda, you probably don't have to stay if you don't want to. Um, you're welcome to stay as always. >> Okay. Um, if there's no other questions concerning the audit, I think I will sign off and let you guys finish your meeting. >> Awesome. Thanks so much for being here, Brenda. >> Thank you. Bye. Bye. >> Okay. Sorry, I have too many monitor. Well, I only have two monitors, but um if I put it on the wrong monitor, I can't share it correctly, and my computer is not behaving. Okay, there we go. Share one. Okay. >> Can you all see the Excel document? >> Yes. >> All right. And is the size good? >> Um, yeah. >> If it needs to be bigger,
015let me know. I can't see what you guys can see. And so I think >> I can read that. I don't know if the team can read that as well, but I can read it on my >> I can read it. And if I can read it, it must be pretty. >> Am I sharing the workbook and not >> you did I was going to say I think it looks like the workbook >> hers. Okay. Not >> sorry. We do not use Zoom very often and you can tell that I am screen stop share. Okay. Okay. >> Oh, I apologize. >> All right. Screen one. Share. >> It's still the workbook, Gina. Or >> is it? >> Hold on. >> Yeah, I I can't see. So, it does the top say prepare if CL client
016prepare. >> Yes. Yes. Okay, excuse me. Okay, so that's the right document and I was sharing the right thing all along. So I'm less inept than I thought at this technology stuff. All right, so here we um go through this is the transaction processing and internal controls. And I can see right here that we actually prepared this Brenda and I did last year and so that's why her name is on there. could have let Brenda stay. Um the the title of that particular monitoring report had me feeling a little confused myself. So we um go through and we describe and if the I'm going to give you guys a brief overview and then we can share this document in the fact folder so that you all can review it closer if that's what you would
017like to do. Um but we go through and we talk about our different policies that we have that go through um our requirements for making purchases and then ultimately obviously the payments. And so we list out and you all are familiar you all might be a little bit familiar with some of these policies. These are our district policies which are different than the monitoring report policies. Those are the board's policies because we're a policy governance board. So then the board delegates the responsibilities that you all are reviewing to the superintendent and staff and then within that we have our district policies that are managed and um handled by the district. So the board doesn't they may review and see some of our district policies but they're not the owners of our district policies. So we
018have district policy 3300 which is our procurement policies. Our 3310 is our procurement and signature authority and then um competitive requirements 3320 bid protest 3330 um we have a requirement to review and make sure that whether vendors that we do not um engage in work with vendors who have been suspended and debarred by the federal government. That's really important for our grants. We we can get in some trouble there. um our policy on business sponsorships, advertising contracts, and then staff ethics. You guys are familiar with 4130. That's when you review, excuse me. And so we um we typically review these policies annually and a little highlight. Uh Brenda and I are working very closely on all of the procurement policies to align them with our new system, the ERP that we've talked about that we're
019implementing. So, our procurement policies have um have not really while we review them annually, we haven't made updates and some of the recommendations we're going to make is to align our procurement policies with those um at the federal level. And so, for example, our um our signature authority right now, the only two people in the district authorized to sign anything $10,000 or more are myself and the superintendent. And so, I'm making a proposal that will have a stairst step up with higher amounts that school leaders can sign contracts that of course there's a review process. they're not just signing them. Um, but they'll have the ability to um sign some contracts that are $10,000 up to a certain dollar amount and then their executive director, the chief of um um academics and and so on
020will have some signature authority so that it's just not myself and the superintendent as those leaders tend to have a better pulse and handle on what's going on. th those haven't been changed and so we're still under that 10,000 limit. Same with our um procurement competition requirements. We're looking at some changes to increase um to follow federal guidelines. Not changed, but my hope is they'll be changed for June 30th, but we we do currently require everyone to follow those district policies and we do a review to make sure that those are happening. Excuse me. And so we have the list and I can't see you all. So sorry. Yeah, thank you, Kelly. Um, thanks for >> alerting me. I can't see you guys looking at this. >> No problem. I just had a couple of
021questions um on this front. So the first question I had was when you're talking about vetting vendors and such, is there a nice cool list out there that y'all can go check or how do you complete that process? debarment pro process. >> Yes. Yes. Not debarring but just checking that they haven't been in that. >> That's right. So we can only see if they have been um which is so we do a negative test and so there's a website that all government entities use to look up vendors and if they show up on the list then we know we can't engage with them. If they don't show up, we literally do a screenshot of the search for that vendor and show that they're not there. It's that sounds funny because you don't appear if you
022haven't been suspended or debarred. You do appear if you have, but that is part of our required process when we are um when we're working with a new vendor. >> Okay. I was more or less curious if it was like a a human research moment or if there was a list that's provided. So, you've got that. Excellent. >> There is there's um and if you're interested, I can get that website link and send it to you. I I personally haven't done it in so long that I used to be able to rattle it right off, but I can't remember today. >> No worries. I trust you. Um and then the other question that I had was um with regard to this change in the signatory limits and such, does the ERP system facilitate this with
023more adequate controls? Is that why we're able to kind of loosen the strings, if you will? Um, so yes and um I would say that there the controls in place already exist to make sure that the vetting process happens that if if it requires an RFP, if it requires just a informal competitive bid, we already have all of that in place and that's already being done through workflow. And so by the time it comes to myself or the superintendent, everything has already been vetted. And in my opinion, it's an artificial control having this $10,000 limit because I'm not going to go through and do all the work that everyone has already done. I'm going through reviewing the steps to make sure it's been done and somebody in purchasing has already done that before it gets
024to me. So I think um 10,000 is a very small number and in has this has probably been in place since the 1900s and so um I think as things cost more engaging in contracts. It's very un it's very rare for us to have contracts under $10,000. So that volume that flows through me is inordinately high. And I think I I can't remember where we've landed for our proposal. Again, hasn't been approved and I may be shut down as I make the recommendation, but the new ERP system will automate that review process so that it goes through a structured workflow that today it's paper um that gets shuffled around. this stack of information goes from the initiator to the next person to the next person to the next person then ultimately to me and and
025then I'm reviewing that packet. Now in the new system it will be um through a workflow process. I I we're still early in the implementation phase. So, I don't have all the answers to how that's going to look, but I know um it will actually rely on some AI and there it can't go to the next person in the workflow until those other pieces are completed. So, there will be really good solid controls in place that are automated and documented through the system, whereas today those are all on paper. >> Yep. ERP is good about that. So, okay, good deal. Thank you. Just curious. >> Yeah, you're welcome. Does anyone else Oh. Yeah, I just you know I am uh totally supportive of this. Uh 10,000 is definitely too low. At CU, if I remember
026correctly, the threshold was 150,000 uh for approval. Unfortunately, I was the one who had who had to approve it and I know how painful that can be. So, >> yeah, >> I would say go high uh and trust. So, >> thank thank you for that support, Robert. I I um can't tell you how grateful I am for that. >> Oh, Bob, sorry. Um I I um I I'm really grateful for that support because um as you can imagine, 10,000 in an operation our size. >> Carolina is bringing things to me all the time. Can I get your signature? Can I get your signature? And it's it's like I don't as the CFO I don't know something more than the chief academic officer or um legal counsel or you know other other people. And so um
027Kelly the piece I'll add to that is the other piece that will help with some help controls is I believe the reason I'm the routing is because then I'm like the final stop of making sure there's budget for it. Um, and our system will be able to do that. And so that that will also be another really good improvement. >> Gotcha. Okay. Sweet. Awesome. >> Tina, I'm sorry. We do have transportation. We have Eigor and I think we have >> Yeah. So I think >> I'm gonna pause and stop sharing. And um, so I can't I apologize right now while I'm sharing I can't see anything. So I'm gonna stop sharing. And do we have Eigor here and and Al? Anyone else from transportation? >> Uh, and Albert. Yes, we have Eager and Albert. Sorry
028to interrupt, but they're here. >> No, I'm so glad you did. >> And then they can um Eager, are you guys ready? >> We are. Do we have the slide for our uh information? >> Yeah, let me go ahead and pull it up. I'll share that here in a >> All right. So, um, while Carolina is doing that, Igor, do you want to introduce yourself and and Al? >> Absolutely. Uh, good morning. My name is Igor Petravich. I'm the director of transportation and I'll turn it over to Al. So, let me get this going here. >> Give me a second so that I can share that. Give me >> Yes. And I'm Al Francisco. I am the new operations manager and kind of filling in a term for the fleet manager until we get it
029filled. Can you guys see that? >> Yes. >> We're looking at your drive at the moment. >> I'm glad it's not just me. Okay, let's try this again. Drive. It should be easier, right? Monthly meetings. Here we are. And then okay, let's see if we can do this. Share. Okay. Well, oh, maybe this is it. Oh, are you guys still seeing the drive or the form? >> That's it. That's it. Thank you, Carly. >> Okay. Okay. I'm so sorry. So, we'll have Al go through the numbers of inspections for you all and then turn it over for any questions as we um wrap up our presentation. Sure. >> Okay. So, um as you can see on the form there, it's showing how many we completed on time out of the total inspections. We're sitting at
03098% for the for the year of 2425. of the four that that related to the four inspections that were late. Of the two, two of them were due to they were due down at the vendor being worked on and they didn't get back until after the time of their inspection date. Um, but we did not uh have them driven at all. Once they got back, we did the inspection. The other two were clerical errors. So, one of them was uh in June and whether it was just we have two uh places that we're looking at where inspections are being done for the year. Um and the lead mechanic and myself, we have something on a board and we kind of communicate with each other. For whatever reasons, it got erased off the board. I can't
031remember how that happened, but we didn't get it in in June, but it didn't drive through July. So, as soon as we notified or recognized that it was not done, we pulled it in and got it done. So, it didn't drive. Also, the second one was the mechanic forgot to log off of it. It was in the end of the month of June getting into the week of uh 4th of July. So, when he realized that he did not log off of the inspection itself, because this is kind of the way that our system logs it, I guess. So, it really wasn't late in that respect. He had actually done the inspection, but you have to actually sign off and close it and then it stamps it with that date that you actually closed it.
032So, he had actually had the inspection done prior, but because of our system reporting it July 2nd and not June 30, it the earlier June date, it it showed up late, but it really it wasn't late. It would hadn't been driven. It was in his inspection. It was in his bay. So, those are the four inspections that were late. Guys, do you have any questions for Albert or Igor? Thank you. >> And this is what you were wanting to share, right Al? >> Correct. >> And I lost you guys. Okay. Um any other items that transportation wanted to pass along share with with the fact >> nothing at the moment. Nothing that stands out. >> Nope. >> All right. Well, thank you guys so much for being here this morning and uh uh I heard
033today's the last day of school. Just a little for the for the year. Um, so happy last day of school. I hope all the drivers are safe and kids kids are safe today. So, and then they enjoy a a great break. >> Yes. And you yourself enjoy a great break to all of you. Have happy New Year's and Merry Christmas. >> Merry Christmas. >> Take care. >> And Gina Greg is supposed to be here at 9:15. Okay. So, we have few minutes. Yep. I can see the >> Yep. >> Is the Am I back to where I was? >> Yes. Yes. >> Maybe I cracked the crow gel. It's gonna be a good day. It's going to be a good day. All right. So, um I did upload this document into the the um monthly
034meeting folder for December 18th. So, you all should be able to to see this when you want to. Although, I'm not seeing it. Maybe I need to refresh. Uh It is there. Okay. So, it is um it's an Excel spreadsheet, but you guys should be able to see it. So, again um there we provide a listing of people who are allowed to make not people but departments. And so basically everyone, every department and school within the district is allowed to um go through the purchasing expenditure expense tracking process. That of course is I think reasonable. And then we go through and we do describe the purchase authorization process including how things are routed and who makes who approves, who does the work and whatnot. And so I'm not going to read through that. You all
035are very welcome to um to to look through this and then if you have any questions, please reach out to myself or Aaron and we'll be happy to. And then um we talk about when are there exceptions and how do we handle those exceptions. Um very excited again for the new ERP system because the workflow in that is going to um really I think make the entire process more efficient and easier to do with better controls in place. For example, for PECards, they actually in our system will have to do a pre-authorization showing that the purchase was authorized in advance. And there are exceptions for emergency situations. I'm really excited for that. And I had a taste of how that worked at my last district who is using the same system that we're going on.
036Um this talks about who approves again, who can initiate the um purchase and so end users are able to to do that. Um, again following district policy and we we watch for it closely and um I the number of questions I get on a on a at least weekly basis testing do you agree this is following policies and and I will weigh on weigh in on that and point people back to the policy. Um I like to point people to the source itself to ensure they understand the why behind decisions we make. um uh we go through the process of a new vendor setup. And so one of the things I'm really proud of our team and I I um the there's a process to make sure that all of the paperwork is filled out
037appropriately before that vendor can get added and put into our system and down to before we'll add. A lot of our vendors do get paid by a before we will add a banking information, we do a a um a verification, an independent verification that we're talking to the right person so that you know we we're not going to take an email and change someone's AC or change or add someone's a information. We're going to call the number on record of the vendor and and reach out to that person independently. We're not going to do it based on them calling us, coming into the office or um or sending us any sort of documentation. It will it's initiated on our end. And our new system will make that even better where they will follow a link
038that they'll they'll do it themselves and um really pro protecting the district to not um get scammed and add someone else's information. I I'm not sure if Aaron has shared that with you, but a couple of our neighbors have been hit hard by those scams where they were in a one was in a a massive bond project like we are now and a major vendor on the bond, had their information updated, and they sent a large amount of money to um not that vendor, but looked like they were paying the vendor. and it was only through a collections call that that they learned of the problem. And so it's a it's a real risk and I I'm very proud of our our team and the work they do to to really mitigate it. That doesn't
039mean it won't happen, but I think we have good things in place to prevent it. Um, here we talk about purchasing cards. And so any employee who is recommended by their supervisor, department supervisor for a need is able to have a a card issued. We um we do an auditing process to ensure folks are following district policy around purchasing card purchases. we we take that very seriously and um again the new system is going to do an even better job with that and so very very excited. I I know I keep talking about the new system. We're six months away from I guess seven months away from going live with that but um being in a system that is set up to handle pec cards is is going to be fantastic today. That's we we
040manage all of that outside of our financial system and then have to through a process pull that information in. So very excited about that. Um employee reimbursements, we we follow district policy on that and employees do have to submit their their receipts and have approval. We do um for travel we are on a perdm for food reimbursement. We don't require receipts for those and um that is set by we use the rate set by the um GSA. And so that is a process I I'm I'm very happy with um because you know you don't have the person if they're choosing to go eat at a restaurant they wouldn't normally eat at the district isn't isn't necessarily picking up that that tab which is what could happen in the in the old days when when it
041was a actual re receipt reimbursement type of thing. Um we we describe in the document our um PO purchase order activity. Um we talk about our process around construction in progress. And on the finance side, we have an account uh an accountant who works with the business services team to ensure we're accounting for that construction and process CIP appropriately. Uh we've talked about the policies. We This is on Oh, receiving sorry, receiving goods. We um encourage staff to have as many orders as possible get received at the warehouse. And so we're checking that purchase order against what comes in. And that warehouse staff does a a great job with that. And um the biggest why outside of the the verification that the goods are received that we encourage these to come to our warehouse is
042to limit the number of trucks at our schools and number of employees who are not district employees needing to gain access go in and out. And so really to protect the the the schools from those trucks especially at the elementary where they don't have a dock and those bigger purchases let that be handled by the warehouse. They work with the teams and get those in, but it also does control to make sure we receive the items. And I'm looking at the clock. Did Greg join? >> Gina. Yeah, he just did. >> Is there is there a document that we're sharing for RT? >> Yep. It's in the folder. It's called >> I'm going to share that. >> The finance and audit committee internal report November 2025. >> Okay. Hi, Greg. Uh, who is is anyone
043with you, Greg, or is it just you today? >> No, just me today. Yep. >> Fantastic. I'm opening your file maybe. >> Okay. I And I've got it here as well if that would make sense. But yeah, in case >> do you want to do Would you prefer sharing? >> Um, what I'm happy to do so happy to do so. >> Thank you. >> Okay, I'm gonna find the screen that says stop sharing and Greg share. So, uh, Greg is our chief information chief technology officer. Thank you so much for being here today, Greg. And I'm going to go ahead and mute again. >> Okay. Well, great. Yeah. So, thanks so much. And I'm in the process. Let me get over and share this the correct way. Then we'll uh be ready to go. So,
044um, let's see here. Okay. Yeah. So, uh, good morning and thank you so much, uh, everyone who's on the on the Zoom, uh, meeting this morning for the opportunity to meet with you. Uh, I look forward to this meeting every year. We're very grateful for community members who are interested in what's going on at the district and and have want to better understand the the work that's going on here and then also ask us good questions. So, thank you a ton for your time today and we'll kind of jump into it here. So today's let's see I don't use Zoom too often. I want to make sure. It looks like that deck is being shared. Is that correct? Is that what you're seeing or >> Yes, we can see. >> I think Greg is showing
045off you guys. >> Yeah, >> that's all I have to say. >> Yes, we can see your screen. >> Okay. Well, no, I I just I honestly don't use Zoom too often. It's like I want to make sure people can see this. So, thanks thanks for that encouragement there, Gina. So, uh All right. So, uh, yeah, as Dina mentioned, I'm the chief information technology officer. I do have to say, by the way, uh, almost every organization I'm aware of has either a chief information officer or a chief technology officer. So, I always wonder a little bit if people understand what my title is. Basically, it means I'm the head of the IT department here at the district. And, uh, uh, ultimately, you know, my team is responsible for providing technology services on behalf of all
046of our students and staff, all that kind of stuff. So, all right. And so we're here to talk specifically this morning obviously about the U asset protection or the internal monitoring report and there's a two elements in there that are relate to it. The first one has to do with um essentially uptime of our our core systems for the network and so or for for the uh for the district and as you can see on there uh those are the ones that have been identified for this monitoring report our student information in system. So, in other words, Infinite Campus. And my assumption is that if uh if folks are um on the call who have uh students at the at the district, you you are well aware of Infinite Campus, but also our HR and
047finance system, which is currently Peopleoft, as you may know, we're in the process of moving to Oracle. And then internet availability, phone systems, our cloud email and office productivity apps. What we mean by that is Google Workspace, so our word processing, spreadsheets, calendaring, and so forth. And since uh Gina gave me a little bit of a hard time, I I will mention Gina is not a fan of of Google, but she does our her best to uh to uh you know go along with the crowd. And then also our identity and access management system. By that what we what we mean by that is essentially the the software that allows users, so staff and students to be able to log into the network. If that goes down, people can't get onto the network and we're
048we're kind of in trouble. So those are our core systems. And as you'll notice on there, we've listed the percentage uptime. So for the monitoring report, we are the aim is to have all of those core systems available for uh at least 99% of the time throughout the year. And more specifically, that would be during the school day. So that doesn't include after hours and on weekends. Uh actually uh Perry Movik who is our director of our infrastructure services team wishes that we did include that in there because that would actually make these uptime percentages slightly higher but regardless you can see that in terms of meaning 99% uptime we we met that for the period from I believe that's July 20 July 1st 2024 through um June 30th 2025. Now, um 99% uptime is
049is probably decent, but still there can be outages in there, um that we can still meet those metrics and it can be disrupted, but I'll talk about that a little bit more in a moment. Um and so, uh I this next slide, I've already kind of addressed a couple of the bullet items on there, especially that it's measured during the school day. Now, one of the things that we do is whenever we do have an outage, uh we we track that very carefully. And um I we we actually if if you are a if you're a parent, then you got a notification earlier this week about an outage that we that we had earlier, let's see, last Thursday, I believe. And especially since this is a a public is being recorded and I believe will
050be shared publicly. It wouldn't be wise to go into a lot of detail on this, but we did have a lot of those core services that were unavailable for 2 hours and 40 minutes last Thursday, December 11th. And so that included um I'm going to go back to the previous slide that definitely included our student information system, Peopleoft, our phone systems um and then also our identity and access management system. And so during that time those core systems were were unavailable and that that was at and I I would imagine that next year it's quite likely we could still meet those metrics but that was very disruptive. We spent a significant amount of time um uh talking through what understanding what the impact was to schools uh when what do we communicate to parents and
051when what would be helpful and all that and it's disruptive. It was disruptive for Gina's team in terms of just being able to get into peopleoft, but it was very disruptive for learning in the schools and we don't feel good about that at all. But also, I'm talk I mentioned on here that we have incident documents that we complete uh when when we do have an outage. And so over the weekend, our team put together a very detailed six-page incident report regarding what happened. That included our what we know about the root cause. It included the timing of of the outage. It included communications and also some lessons learned and some recommendations for improving our practices moving forward. And so, uh, yesterday actually is when we have our weekly IT leadership team meeting and we
052did a a thorough, uh, deep dive into that document and talked through lessons learned and ways that we u can learn from and improve in the future. So, um, and real realistically, I mean, this happens. We I I always I never feel good about an outage. It's very uncomfortable. I It's never fun to sit in our emergency operations center and have to report to district leadership and then ultimately to our community that my team has failed the organization during that time when systems go down. Um the truth is no technology is perfect that it's has a 100% uptime. Even organizations like Google, Amazon uh and Meta and so forth uh with billions of dollars of resources still have downtime at times. Uh the the key thing is are we learning from our mistakes? Are we
053getting better? Are we improving the odds of of of of avoiding those mistakes in the future? So >> I I would not say you're failing the school. You're I these numbers I they look amazing to me. So >> Well, you're very kind. You're very kind. to maybe and also I I need need to mention the culture at the district here is is wonderful right I'm walking into that EOCC room and folks are like are you doing okay and I'm like well I'm feeling horrible that schools interrupt interrupted right now but uh but yeah we're we're doing our best with the resources we have and I appreciate that feedback thank you thank you >> so uh we'll also move to the next part 2.5.6 six. And here we're talking about uh the requirement for the district
054to protect intellectual property, information, and files from loss or significant damage. It probably goes without saying that we're talking about digital uh intellectual property. That's the part that, you know, our IT team is tasked with. And so uh during that same time frame July 1 through 2024 through June 30th of 2025 um we are we no uh loss or damage was reported. I think it is important to be fully transparent. None was reporting none was reported to the best of our knowledge. We didn't have any loss. Um you can never say that for sure with the side with an organization the size of ours but none was reported. And it also this slide is helpful in terms of giving an an awareness of uh just you know what we're trying to the the scope of
055digital services that we are that we're working through. So um right like if you right here we're talking about 65 and a half thousand managed devices. So what we mean by that would be Chromebooks for students, laptops for staff, and then also uh additional laptops and and desktop computers throughout the district for various business operations. That's an example that could include like a PC in a in a cafeteria that is uh you know information is being collected as students go through. So there's about 65,000 devices that we manage and maintain. And then also just to give you a sense of the type of communication that we're receiving about 302,000 daily inbound and outbound emails. So by the way from a cyber security perspective one of the most common ways that an organization is if there's
056some sort of integrity breach or or not integrity breach digital breach would be via fishing attacks with email. And we have multiple uh technology in place to be able to screen those incoming and outgoing outgoing emails. And so about 20% of those are identified and and blocked and never reach uh people's inboxes. Uh we also have on a on a daily basis we have about uh well just under 30 million blocked network attacks. And so if there's anybody on the call who's ever been in uh our data center, we could we can see real time on large monitors the attacks the cyber the cyber attacks that are coming from all over the world. Uh a very large percentage of these are automated and and informed by AI techn AI technologies. And what we also see
057is that after hours and on holidays, sometimes those numbers will spike to as many as 40 to 50 million attacks per day that our we our various uh cyber security technologies are blocking. Um and so also here's here's some data that we found just recently reported by the center for internet security or CIS which is a federal organization. You can see the numbers there that during that 18month period up until about a year ago this month uh that there's roughly 16,800 districts um 116 school districts or just under 1% of them reported a ransomware attack where you know an outside nefarious uh actor was able to hack into a network and then encrypt that technology and attempt to hold districts hostage to pay them money to get access to that data in and these fishing
058and social engineering uh strategies are are the most common tools that are currently used to be able to hack into our networks. And so that gives you an idea of kind of what we're up against in terms of uh preventing u you know the loss of intellectual property information uh in files from significant damage per policy 2.5.6. And so been doing quite a bit of talking there rattling I I believe yep that's the information that I have. I think we have a couple more minutes before the next person comes on. So, I'll pause. Questions, concerns, those types of things. >> Again, I just want to say great job and looking at this slide here. I don't know how you sleep at night. >> Hey, thanks. Thanks so much. you know, on that regard that we
059are very fortunate from an IT perspective and that we have had over the years that I've been here, which is just over a decade, a lot of support from from our superintendent and from the board to invest in tech in uh cyber security technology both in terms of staffing and technology tools. So, we are compared to most districts in the state, we're able to invest more technology in that space. And also a really a shout out to Dan Dawandorf our cyber security manager and he oversees a team of four other cyber security members of this team do a lot of really good work to protect us but he's the one who's really he really feels the weight of that he understands the threats better than the rest of us in it but but thank you
060for your your your kind feedback. So, >> Greg, we do have um we were talking about on the chat, sorry about the tab um because we had you as 2.5.4B, but you have 2.5.6. So, I'll check with you and it's probably on my end. I'll make sure that we do have a tab for that if that's the wrong tab. So, >> you know what? If I apologize. I wonder if we have a typo on that. We can >> Yeah. Or me. So, I'll check with you after that. Um, members, we do have the the information under the 2.4 uh 5.4. There is an A and a B. So, but I'll check and then I'll I'll add a tab if we need to. >> Okay. >> Um, and Greg, to be clear, I was not poking
061fun at you. Um, the fact all the members will attest I was poking fun at myself. Um I if everyone could nod your head um to to make it clear. Um I know I usually am poking fun at you or it but I was poking fun at myself. >> Today was an outlier. So I appreciate you pointing that out. >> So >> thank you. And we do have John Paul on the on the line if anybody has any other question for Greg. If not we do have John Paul. Greg, thanks for being here today. >> Hey, thanks Eugina, Carolina, everybody else. Appreciate it. It's always fun to see. >> Thank you. >> Okay, now u before John Paul gets started, um I'll just say that from a finance standpoint, we have a couple of statutory
062requirements that we must do, we shall do. We must adopt a budget and we must uh set mill levies so we can tax uh property tax owners. And the next thing we shall do is we shall have an annual financial audit. And so we we have John Paul here to go do an overview then of of audit results which are similar to those that he shared with the board. and welcome uh John Paul to the show. I think you're on There we go. We've got We've got you. >> Thanks, Aaron. All right, let me >> Hey, John Paul, before you get started, I texted Jean and said you're rocking the old school headphones. Well, you know, everyone does the Bluetooth now, but I just get nervous that the battery is going to die or the
063connection's going to go out or whatnot. So, yeah, as long as the laptop has the option for the wired, I do that. And uh they actually fit a little bit better. So, I don't know. Maybe one day I'll catch up with everyone else on technology, but for now, >> you're not alone, John. You're not alone. So, uh, great. Well, uh, my name is John Paulalia. I know I've presented, um, to the finance and audit committee, um, in the past, but, um, I'm pleased to be able to present the results from the fiscal year 2025 audit. Uh, as Aaron mentioned, this is similar presentation to what was given to the board. Um, I can't remember the exact date, but I believe it was about a month ago. Um and so um happy to be able to
064kind of present the results and if there's any questions, comments, discussion items, please feel free to interrupt and we can um you know spend more time kind of wherever uh makes sense for the committee to uh pause and kind of discuss anything further. So with that um I'll kind of start with uh the general overview that we normally give. Um, so we're uh pleased to be able to say that we were able to issue an unmodified or clean audit opinion for the fiscal year 2025 uh audit. That's the highest level of audit uh opinion that the district can receive and it's really the one that the district should be expecting to receive uh each year. What that means is that after all of our audit procedures uh we believe with reasonable assurance that the financial
065statements are materially correct. Um the example that I uh or analogy that I like to use is that the district is the author of the financial statements and we're the editor of the financials to make sure that everything is u materially correct. Um one thing that I also like to point out with the audit is that the audit is really designed to be able to say whether the financial statements are accurate. So when we kind of say good or bad, really what we're saying is accurate um in terms of the actual use of the funds or performance of the district whether you know the trajectory of the financial activity is positive or negative. Um that's really kind of up to management and the board and as well as the uh fact to kind of have
066that input and make the decision of whether that trajectory is going in uh you know positive negative you know how to interpret the results is really outside of the scope of the audit. We just make sure that the information is accurate and can be relied upon. So that's kind of the uh overview of the audit report. We do also look at internal controls. So kind of the processes and the structure for how financial activity uh is recorded. Making sure that those are uh working and designed as they should. Though our audit report does not specifically um give an opinion over the effectiveness of the internal control. So, we're reviewing it, but the auto report really is designed to be uh giving that opinion over the financial statements and not specifically over internal controls. So, there
067are a couple of different components within the audit. There's the financial statements which uh is what was uh issued and that's kind of the 200ish pages of you know financial information. That's the majority of the audit procedures are performed over that there and that's what our unmodified or clean audit opinion is issued over. There's also the single audit uh component and that's the uh additional audit procedures that are required anytime an entity receives over a million dollars in federal awards. So obviously the district receives significantly more than that. And so one of the requirements is that the external auditors also perform these single audit procedures. Um that's in process at this time. So the deadline for the financial statement audit was prior to the end of um end of the calendar year. So really by
068the end of December 31st is when that needed to be submitted to the state. So that's complete. The single audit is required to be completed prior to the end of March. So that timeline is a little bit longer. Um there were some delays uh with the federal government. They uh the compliance supplement is the name of the document that's around a thousand pages long that has uh almost every federal award and the specific procedures that they want auditors to look at. Uh that normally comes out around May each year and this year it came out just before Thanksgiving. So quite a bit later than it normally does. Uh so that caused some delays. Uh as well as one of the programs that we're looking at is still in process. Uh we're working with Aaron to
069get uh some remaining information. There's just some confidential information as part of that. So, we've been working through kind of the best way of um coordinating and transmitting that data, making sure that we're um uh keeping all of the privacy and data protection kind of following all of that. So, that's kind of the one outstanding item at this point. Um just to jump ahead of kind of what we're we'll talk about with the single audit. Um but at this point we don't have any uh findings or concerns um with the financial statement audit or the single audit any uh that reach the level of a material weakness or a significant deficiency. So those would be the more significant items that would show up within the audit report. Uh we did have a best practice recommendation
070that does not go into the audit report um but is communicated separately to district management uh and we'll be um continuing to communicate and discuss with them on kind of following through on that recommendation. But again, nothing that reaches the level of significance or concern uh to be included in the report, presented to the board or um to the fact. So that's kind of the big picture overview. I guess I'll pause for a second if there's any questions or comments on kind of the big picture overview. Otherwise, we'll talk a little bit about some of the results that are presented within the financials. >> Well, I'll just say congratulations to the uh staff for doing such a wonderful job uh on the district staff for doing such a wonderful job and getting these very good
071results. Echo definitely. >> Okay, great. So, I will kind of give a you know I realize it's you know hundred some pages in the uh annual comprehensive financial report. Um I'm not scheduled for nearly long enough to cover every single page individually. Um and I think I'd probably fall asleep uh going through all of it. So I'm sure all of you would as well. uh but did want to give a a high level overview of some of the results particularly the items that only show up on the annual uh financial statements. So I realized that um the district does a very nice job of monitoring uh the budget and making sure that kind of that financial activity throughout the year is being presented. Some items uh only show up on the um annual financial statements
072really just based on uh the requirements that are uh that governmental accounting standards have as well as some of that information really only needs to be compiled annually. And um so anyway, the first item on here um the district presents like all other Colorado school districts two sets of financial statements. one on what we refer to as the full acrual basis. That's kind of a long-term view of the financial position of the district. Um so how that's going to differ from the budget is that it's going to include capital assets. So um school buses um school buildings any equipment those types of items will be shown as assets of the district on uh these financial statements whereas those wouldn't be shown on kind of the budgetary basis since you um wouldn't be able to spend
073those at least not in their current form without selling them first. Um, it also includes the district's long-term liabilities such as bonds, any long-term leases, um, that type of thing, as well as the net pension liability. I know that's been around now for around a decade. Uh, so it's something that I know we've discussed in the past, but it continues to have a significant impact on the district's long-term financial statements that get presented within the uh, annual comprehensive financial report. So, if we look here at the district's net position, you can see that the amount is a deficit. So, that getting smaller is actually an overall improvement in the district's financial position. Uh so if we look here, it ended uh close to a deficit of $und00 million. If we look at the net pension
074liability that's required to be presented on the district's financial statements and u that's about a $700 million um decrease to that. So when we kind of compare the two, the district would be presenting a much stronger long-term view uh if the pension liability is excluded. So the net pension liability, it's a brief recap that relates to the district's participation in the defined benefit pension plan uh that's required to be offered through Colorado PARA. Um, this is kind of their calculation of essentially the unfunded amount. If you were to project out all of the future benefit payments compared to the future amounts coming in, this would be um the small percentage of the overall pension plan unfunded amount that's allocated to Adams 12. Um, so that's kind of what that relates to. Even though this is
075a $700 million liability, it's really kind of more of anformational uh amount that's presented on the statements, it's not something that the district could repay even if you wanted to and had, you know, $700 million laying around that you wanted to give to PAR. Uh you wouldn't be able to do that. This is really more long-term. This is something that will either need to be adjusted through additional contributions by the district, by employees, by the state, or through a reduction of benefits to retirees. Something to be able to be able to have the pension plan continue. That's really more of a long-term view, though, in within the next 30 years. PAR is not expected to um have a cash shortfall at least based on their uh most recent actuarial projection. So this is really more
076of a very long-term um liability in terms of the projection. So I realize spending a lot of time on something that u is really more informational but it's a really significant number it does kind of drastically impact these um big picture financial statements. And again it really is only presented uh once a year on the annual financial statement. So wanted to cover that so that you're aware of what's being presented. Again pretty similar amounts actually slightly less than what it was last year. Um, but did want to mention that the other >> I think that statement was one of the dumbest statements, Gazby. It one of they've come out with a lot of dumb statements, but that one was probably one of the dumbest. opinion. >> It does seem like there was maybe some politics
077behind it in terms of uh wanting to present some of these long-term views for pension plans. It is difficult when the pension plan is really a separate entity that's required to fund this outside of the control of the district. So, uh, it's it's a challenging statement for sure and there's a lot of pages on all of the >> there's a lot of disclosures that to be honest, I look at it for a lot of clients every single year and some of it still goes over my head as you know actuarial stuff that um, you know, is probably more complicated and I don't know how someone reading the financials would understand it, but maybe they're smarter than I am. So this >> and I would just say if I could just add John Paul that >>
078of of the users of our financial statements the the users who look at this the most as far as the both the net pension liability liability as well as the net um net position of the district are are the bond rating agencies. So when we present to S&P and Moody's we do spend um some time on the governmentwide financials on this on the net position pieces. Um, we'll say that uh years back, probably 13 years ago, 12 years ago, Moody's came out with a statement um and a sort of a policy recommendation on how they review net pension liability as well as OPED uh pieces. And so that's been very helpful for us as we present to Moody's every every time that we issue bonds. though as we issued bonds in 2025 early this year
079uh we did spend some time uh speaking with Moody's and S&P. So that's that's really another way in which we need to use this information. >> That's a good point here. Um so the other item that uh Aaron just mentioned was the net op liability. bring this up because otherwise you don't normally hear the words OPED um which stands for other post-employment benefits. Uh that relates to the health care um subsidy that's provided to retirees. Um so this is part of the parah benefits it while you have the 1.02% 02% employer contribution. Um that gets combined in with the other PAR contribution. So it's not something that shows up separately. It really um for all intents and purposes looks like the pension contribution. Um so that's what this relates to. If we look at it,
080while um you know a little over $10 million is not a small number compared to the net pension liability, it's you know a very small number, but did want to bring that up again since there's so many pages of required disclosures about it. That's what this relates to. Okay, so kind of switching gears to then the financial statement results for fund balance. This is going to be a closer um mirroring the budget. So, this is kind of the ending balance that's able to be carried over into the next year uh for budget purposes. This would be uh similar to what you may refer to as a reserve. Um did have this broken out if you uh into two different colors. Um the lighter uh kind of greenish color relates to the building fund. most of
081this fund balance is going to be debt proceeds. So if you kind of look at that balance, you'll see that in fiscal year 19, it was very significant with a lot of bond proceeds um still sitting in cash and then that slowly uh gets spent down as those bond projects are completed. Then in fiscal year 2025, anotherund 86 million including premium was issued. And so that's uh where that additional amount comes in. So if you were to look at this kind of without the different colors, it looks like oh, you know, there's kind of been a a dip uh through the years, but really that's just the spending down of those bond proceeds. If we look at the kind of darker bars on there, those would be outside of bond proceeds. And you can see
082that that has been increasing over uh the last seven years with fiscal year 2025 being right uh around the same amount as the end of fiscal year 2024. So I realize this is probably a lot more familiar in terms of uh kind of the budget numbers that you'd see in a more regular basis, but uh this is kind of what you'd see in the uh annual financial statements as of June uh 2025. Any uh I guess before we move to the single audit any questions or comments? I realize I have you know three slides covering 100 plus pages of financial information. So it's a lot left in there but u I'll pause again if there's any questions comments on financial statement results. >> Are the general funds looking okay? Uh, I don't have in here
083um the percentage. I don't know Aaron or Gina if you'd like to kind of comment on your thoughts on that. >> Yes, I Bob the the general fund still looks good. We're getting uh fantastic feedback from both S&P and Moody's on our uh fund balance position in the general fund. Um we we have uh set aside reserves or assigned fund balance related to risk curriculum as well as our um as well as our device refresh on IT which all three of those protect against ups and downs in in spending or or sort of arbitrary you know declines. um but also ensures that we have money set aside for those potential events. And then um within uh the fund balance then we're we're now actually we believe fully reserved or near fully reserved in our multi-year
084obligations. U those are related to um the post-employment retirement benefits that we provide. We no longer provide them. they were phased out and grandfathered, but we now believe uh we're near fully reserved there. And of course, we're fully reserved in our in our um in our TA normal Taber reserve. So, Taber includes both the multi-year obligation and uh the standard Taber reserve. And so the fact that we are fully reserved in our multi-year obligation, we have a various strategic set aides um as well as meeting the board's requirement for u unassigned fund balance. So in in all I think we're we're actually in a a very strong position. >> Okay. Thank you. And I I'll just add to that, Aaron has done an excellent job in looking at different areas that we should consider reserving
085fund balance for. And so I expect next year in this report that we might talk about some additional reserves that we're looking at, for example, um in planning bus purchases. And so having those monies set aside so that in let's pretend 3 years we need to buy five buses. We're not going, "Oh gosh, we need $1.2 million." We we've been setting money aside so that we're able to do that and it not be a one-year um one-year crisis. And so, um, that is that is some really great work that Aaron has done and our superintendent and cabinet team have really appreciated and I'm confident the board also would, you know, we don't really highlight and talk about that a ton, but um, I think that type of planning when we go to the ratings calls,
086the um, rating agencies really appreciate that thoughtfulness and planning. So, I wanted to highlight the work Erin's done on that. And I would just say further one extra piece is that it we talk about volatility but what Gina mentioned is predictable volatility and when we know predictive volatility it's really imperative for us um in our fiduciary responsibilities to to ensure that we're ready to go for that volatility and it and I think if we don't it does cause and can cause governments to then have to make um more drastic decisions than they would otherwise. Um whe whether it be taking a a fund balance really low or not uh not having reserves set aside for capital or or something like that. So it what I would say it's this is really all about predictive volatility.
087Pretty sure I just made that up. Okay. All right, John Paul. Uh, single audit. >> I Yeah, I just made a note to add predictive volatility to some of my uh, you know, comments later, but uh, so, okay, the single audit again, this relates to, um, the required audit procedures over federal low boards. The district received around $33 million in federal awards in uh 2025. Uh the major programs that are listed here, those are the ones that are required to be tested. So that's uh basically any of the significant uh awards that the district receives are going to be tested on a three-year kind of rotating basis. anytime there's ones that are more significant than they were in previous years, then they would kind of go into that cycle as well. And so you'll see
088the refugee and entrant assistance uh award that is one that is um not normally one of the more significant ones, but because it was uh a little bit larger this year than in previous years that was selected as a major program. And so that's the one that um we're still working through to uh kind of get the last bit uh completed so that we can have that probably done in uh January and submitted well before that March end of March uh deadline uh for the federal government to receive uh the report. So that's kind of the uh big picture view on the single audit. Again, at this uh point, there's no uh findings that are expected. Uh knowing that again, we do need to finish the last little bit before we can say for certainty
089that um that there's nothing to that will be reported uh relating to the single audit. Okay. Uh and so then we do also have uh what we refer to as our governance communication. Uh so this was a board addressed or sorry a letter addressed to the board of education that outlines um all of the required communication basically auditing standards say you have to tell the board or the governing board these specific items at the end of the audit. And so it really just outlines all of that. Uh most of the wording is very uh templated again trying to meet the exact requirements of the auditing standards. Uh but I'll highlight a couple of items in here. Uh the first is there was a change in governmental accounting standards uh relating to compensated absences. So this
090was u across the country. Everyone was required to implement this. Compensated absences refers to um time off. So vacation, sick, PTO, that type of thing would be what would be included within this. Um there this does not change the district's uh benefits or what's provided to employees. What this changes is the methodology for determining what that liability in terms of the dollar amount is how that's presented on the financial statements. So after analyzing the change that was implemented for this year, the overall impact was not significant. Um, but it was something that was um, significant enough to mention in the uh, letter, but it didn't really have that big of an impact on the actual amount that the district presented. The other area that I'd highlight on here um, is the uncorrected and corrected misstatements
091um, sections. So, pleased to be able to say that we did not have any misstatements identified during the audit. Um, and so we can get to that unmodified or clean audit opinion, but sometimes, uh, there's some adjustments or things that need to be fixed through the audit process to be able to get to that point. Um, but in this case, pleased to be able to say that we did not have any audit adjustments. So, that's really uh, a very good indication that the audit went very smoothly. And so um again kudos to Gina and Aaron for keeping very good records having good processes for everything so that when we start the audit everything is in good shape. Um again number of other items that are all required to be uh included in the governance communication.
092The one thing that I'll highlight in here um as is has been the case um in previous uh financial statements, but the annual comprehensive financial report does include uh the district's charter schools even though those are run independently and the finances are managed separately from the rest of the district because the district has oversight. um those charter school financial information that gets included in separate columns within the district's financials, those were audited by other auditors and so we're relying on their audits in order to include those within the district. So we didn't do those charter school audits and uh but it still is included within the district's financial statements. So that's all I have uh for the discussion. Again, a very uh clean and smooth audit completed on time uh and on track to have
093the single audit completed prior to that deadline as well. So uh overall, no real significant concerns to be brought up, but I'll pause one more time if there's any questions, comments, discussions, other things we want to uh talk about. I'll just say Gina and Aaron Aaron uh to you and your team an outstanding job. Uh great job. Uh having these results that's uh that's having gone through multiple audits and having done many audits uh I know how hard it is to get to this position. And uh I would also like to say thank you to John Paul for the work that you and CLA did on the audit. So >> thank you. Uh yeah, we just don't tell anybody how much fun we have when we do it because we we want people to make
094sure they understand that this was a lot of hard work >> when Yeah. When when we just we sit back and we just enjoy life. Um one uh further thing that I would mention, John Paul mentioned um adjustments or changes in Gazsby standards. The other standards that we do take a look at from time to time are any proposed uh statements on auditing standards. And I just wanted to let the fact know that there is a proposed statement on auditing standards that relate to uh fraud in an audit of the financial statements and uh Gina and I are working very diligently to to look through that auditing standard. I GFOA made comments. Uh Gazsby made comments and all all of those sounded as if uh they didn't really have a lot of disagreements and that
095um I would think that that auditing standard would eventually come through. We're Gina and I are working with with cabinet on is making sure that uh we get all the information out to principles um bookkeepers, office managers, etc. And then uh one of the potential big things u you know John Paul mentioned the internal controls is that where where we want to make sure we're doing an exceptional job is is not only documenting those internal controls but the auditing standards work a lot now towards that we're verifying um doing a lot of documentation on verification uh that we've done spot checks or we've done um interviews or or anything that's related to our internal controls that we're actually uh talking to the right people, the people responsible for those pieces of the job and being
096able to, for lack of a better word, prove um that that we have been checking on those internal controls and that that we can show our auditors that that's been there. Uh further to Bob's comment, I I do thank uh John Paul. Uh we've we this is I think our our third audit uh together, though CLA's certainly been with the district for for quite some time. And um one of the things that John Paul lets me do is pontificate. So I appreciate that. Uh you don't know if he listens to me, but I do appreciate it. And uh I would think I think that uh very much appreciate uh John Paul and his team's work uh this year. Um CLA has done some some reorganization in how how they allocate work and and both both
097how they utilize their national network as well as their Denver network. And I appreciate his um his dedication to meeting our timeline. Gina and I um want to issue as quickly as possible after the end of the fiscal year and we keep uh I think getting um better and better. We've looked at quite a few of our prior audit opinions and I do believe this is uh one of the earliest uh that we've ever issued and so uh that is is due to John Paul, his team, the stability of his team and and just the communication that we have back and forth. So appreciate that very much. >> Thank you Erin. I appreciate that. and Aaron, I think we are out of time. >> Great. >> Thank you, Paul. >> Thanks, John Paul.