00156 the Okay. Okay. The time is now 6 PM. I call this meeting of the Granberry Independent School District to order. Let the record show that a quorum of board members is present, that this meeting has been duly called, and that notice of this meeting has been posted in accordance with the Texas Open Meetings Act, Texas Government Code Chapter 551. And we will now have the invocation and pledges led by Mr. Bolton. >> All right. Have some heads and hearts. Uh Lord, thank you for this beautiful day. It's reminding us that spring is in the air and that Easter is close and that reminds us of the cross and especially the resurrection. And thank you for that. Uh election day is tomorrow. So give us wisdom and discernment to choose our leaders and our policies
002carefully. Uh you are the great I am not bound by space and time. So whereas we wait, you already know the outcome of what's coming tomorrow and we will wait. Um, we have a divide in this town. I know you know nothing escapes your notice. Uh, you can heal us, but you have a plan. So, I've read all about it. Thank you for that plan. Thank you for my place in it. Thank you for our place in it uh here on this das and guide our decisions in Christ's name. Amen. >> Amen. Please join us in the pledges. I aliance to the flag of the United States of America and to the republic for which it stands. One nation under God, indivisible, with liberty and justice for all. >> Honor the Texas flag. I aliance
003to thee Texas. One state one and indivisible. I guess it is. Okay. >> Okay. We'll begin with our superintendent comments. Yes. So, um first of all, I want to apologize to the board and to our public that, uh we had a small technical difficulty on posting the agenda. And so, uh originally the board had some questions to ask an attorney. we were going to discuss and close session uh Decker Jim, but that that agenda did not get posted successfully the way we wanted it to. So, we did not have that meeting. So, um once again, I apologize for that technical difficulty and uh we will move that question and answer with an attorney session to the next meeting as long as everything lines up with our attorney. Um but I wanted to make sure that
004you guys know about that. Um >> that's the next board meeting, not the next >> I'm sorry, that's a great clarifying question. It should be March 23rd, which is our next board meeting. Um, and but I will that agenda will be posted next Tuesday to confirm whether that's actually taking place or not. I've got to confirm with our attorney that they're available at that day and time. Uh, but that will be posted on that agenda if we talk about it. So, thank you. I appreciate your flexibility and your understanding on that. Couple of good uh pieces of information. At 6 o'clock today, which is right now, I think, uh, we're having a parent meeting for our new virtual hybrid program at the high school. And so, um, we've already we opened up the application. We've
005already had several submit. And so, uh, we that will be open for two weeks. Uh, and so after the parent meeting, they there's what did you say? There's what? >> There's 67 people there already >> at the meeting. >> Fabulous. >> That's going to be my question. [laughter] >> Wow. 67 people at the meeting. That's great. Okay. And we've already had, I think, over 15 apply. Um, so it'll be interesting. That's going to be one of our um one of our discovery uh innovative offerings. It's going to be great. Uh, and then another thing that I want to make sure and update the public on because uh, we had a group looking at, and especially the board, I want to make sure you hear this from me. We had a group looking at one of
006the difficulties that we're running into at the high school is that students are being pulled out of the last part of their day. They're missing some school time. So, we were looking for a solution to that. And so, um, there was much chatter around possibly changing the times for, uh, the high school and the elementary schools to make sure that kids are not missing instruction time. Um, so we had a group looking at that. We're not going to proceed with that for next year, but that conversation will continue and hopefully by December we'll have a fully developed plan. It was a little bit too much change. Um, too many logistics involved. Uh, I'm sorry, what? >> Pulled out for what? >> I'm sorry. >> Where are they leaving late in the day? Oh, okay. That's
007a great clarifying question. Um, so our student athletes have to leave class early in order to get to the places that they play. So, our high school starts much later than the schools we compete with. And so, a lot of the high schools are out by 3, ours is out after 4. So, we're looking at um saving money uh for substitutes and also preserving and prioritizing instructional time at the high school. Um, it is more logistically difficult than we initially thought. So, we're going to continue the conversation and come back to the board later with that, but I didn't want you to hear chatter about that uh without being able to make sure and and let you guys know if you're hearing that chatter and then also the board that it's not something happening next
008year, but we'll come back to you when we have more information about a recommendation. And um I think that is about it for uh my superintendent comments. Thank you. Okay, thank you. And now we'll go into our public comments. Um, with the new law, we have to start with the parents and students and then community members. And then uh based on who signed up and the items that they were going [snorts] to speak on, there's some information in front of you regarding um policy and some executive summaries regarding the the items that were going to be spoken about tonight. So, if you need to reference those at any time, you have you should have those in front of you. Our first speaker tonight is Emma Bissan. Did I say that right? Um current forest thing
009students um wanted to speak about participating in graduation ceremonies, please come on up and then you'll get three minutes. Um if you need to use all three minutes, great. If not, that's okay, too. And um feel free to ask any questions that you may have. This is meant to be pretty informal, so we can have a discussion and answer any questions you may have or give you more information or consider some of the things that you have to talk about tonight. >> Okay. Hello everyone. My name is Eva. I'm 18 years old and I'm currently a French exchange student in my senior year at Grambury. I'm standing before you today to tell you my story and to get your attention so that you understand and accept my request. After three years of high school in
010France and obtaining my French balia, which is the equivalent of high school diploma, I wanted to go to the United States to discover myself. learn more about the fabulous English language and improve my skills even if there are still not perfect as you can see. English is very important to me in general but especially for my future career as I plan to become an airline pilot. In fact, since 2022 I have been flying in France at my local airfield and already obtained a pilot's license at the age of 14. The United States has allowed me to move forward with this project as I attend ground school aviation classes every day at GHS. Thanks to which I will take the PBL exam on May 7. Let's go back a little bit in my story. On August
0117, I left my family, my friends, and above all my country at the age of 17 to come to the United States for 10 months as an exchange student. This experience was the most wonderful but also the hardest my life because it's really difficult at first to find yourself in another country far from your familiar surroundings and your language. So I enrolled at memory high school at the start of the school year participated in events like all the seniors this year attended classes took photo for the yearbook and had my class photo taken in cing gown as you can see in this picture. Um So, I even missed my French graduation ceremony last September because I was here and that's why I'm standing before you now. I would like to ask you to ask for
012your attention and request that you allow me to participate in the GHS 2026 graduation ceremony. I don't ask for any diploma. I just ask to be able to participate and be included as all the other seniors in the ceremony. My parents I have not seen for seven months now would like to make the trip for this special day which symbolizes my exchange but also an experience that I will only have once. Of course, I understand that it is not possible to obtain a diploma due to my insufficient number of credits, but nothing will prevent me from walking the stage alongside all my other seniors classmate this year. In addition, I already have my cap and gown which because it seems logical that I would be able to act. I realize that this is a special
013request but I hope I can change your mind as it seems to me that one more or less person will not make any difference to you but it will make all the difference to me. Thank you in advance for considering my request. I hope you will be able to thank you for your time. Okay. So, I just want to clarify so I make sure I'm understanding correctly. Your request is to just be able to participate in the graduation ceremony, walk across the stage, but not actually receive a certified diploma because of the the credits and >> Exactly. >> Right. And you missed your own graduation because you were here in the States. her because so I I have my diploma in France and so everybody was coming to the school to receive the diploma and
014like to the graduation like here and so I was here in the US and everybody was sending me pictures and say oh you know today we have the graduation and I was like okay but you know I can't come so you know it's hard >> so so it's almost like you're getting you're missing out on two >> exactly that's >> right right >> I I understand that and um you know what a great opportunity this is and I'm so glad that um you were brave enough and courageous enough to take that opportunity and come abroad to the states. I I can empathize with what it feels like to be a student in a foreign country at a a different school and um so you have my sympathy there and I really admire your bravery to
015come and speak tonight and let us know what's going on and sharing your thoughts with us. So thank you. >> Thank you. Thank you so much. >> Yes. Do you have any questions or does any other board members have anything? >> I don't know. I'll say well done. I'm a big fan. That was perfectly articulated and amazing. >> I just out of curiosity. Um, will you then take the STAR tests, those type of tests here or the skip those? I I was just wondering for because I know that all the seniors that are going to graduate are taking those. So, I wasn't sure. I I don't know what >> she will not >> as a senior that the people who have taken all the all from n >> oh so that all those are taken
016before you get to your senior year >> if you pass them okay I I didn't know but that was my question and >> I wanted to comment on one thing and I just want to make sure the board knows that um this conversation has come up before and so um there is a polic policy and I just want to make you aware of it FM and it is a local policy and it's talking about who can participate in commencement exercises and I think that's what we talked about on the phone. I was grateful that I got to talk to you um not to you but to you um and but I want to make sure that we are following policy currently as written. I know it's important that um this you know this ceremony is
017uh one that we we do value and for the people that walk across it that they're asking for um not to get a diploma like you said but to participate in it. If the board wants to move that direction we would have to update this policy because it does say that you know this the only exception really is about the star test. So, I think that's why you guys are here is to kind of talk to the board about that. And there's um you know, mixed feelings, I think, across the board on this because um there's a lot of history and and and some strong feelings, but I wanted to make sure the board knows that this is here and this is board work and that's why we're here. >> I have a I have
018a question. The way the policy is currently written, it says, "A student who has satisfactorily completed all coursework requirements for graduation but has failed to meet applicable state testing requirements shall be allowed to participate in commencement activities and ceremonies." And so is the caveat here that the completed all coursework. Okay. So that would be a policy change we would have to implement here at the local level to allow something like that to happen. And so that is something that the board could bring as an agenda item at a future board meeting. >> Yes. >> And it could be as simple as adding the phrase at board discretion >> approved by the board or as as approved by the board. Yeah. You know, uh we always want to be careful about exceptions to a policy because
019the minute you have an exception to a policy, it does open the door for other groups to be approved. And so you you know that as board members that we do have to be careful with those things and not that we don't completely understand and and and value you here and um so it's nothing about that. It's just once we do make an exception or change the policy, it does open us up for different things. And so I just want to make sure that you're all aware of that. Um but it's nothing against you and the wonderful journey that you've been and I've heard nothing but wonderful things about you too. So did y'all have questions down this end? We kind of >> I just have one and I think I'm loud enough. Okay. Uh,
020so Emma, why GISD? I'm just trying to figure out this. This is America. There are a lot of places you could have gone. Uh, you're from France. >> Uh, you didn't tell us what city in France, but maybe you can share that. But why Gist? >> Uh, so you mean the US? >> Uh, the US. And to why why Granberry? Uh, Granberry High School? Because we're the best. >> No. So, I'm from the south of France. so close to a city named Tulus in the south and um so the program of being an exchange student you just choose the country but you don't choose where you go so it's like a surprise kind of like you just receive your placement one day and someone call you and say okay you're going to Texas [laughter] where
021>> great question >> but yeah so but for the US I just always have you know like us for we have a lot in common the way we are um I don't know in our culture and way with my country and also because you know for for English I think you know after high school I was like thinking it was a really good experience to do that and you know open your mind go somewhere else and meet some new person to see oh is it in another country so for all of these reason and I I don't I have no regret of doing that it's really hard you country and you know >> but now seven months later I just I could redo it like 100 times because it was a wonderful experience. I met
022another wonderful person. >> Yeah. >> Thank you. Thank you. >> Thank you >> and thank you for state of Texas and [cough] [clears throat] exchange student to come and to be able to do that because it's a wonderful program. >> Thank you so much. >> Thank you. appreciate you coming tonight. Um, next next person. Thank you so much, Emma. Uh, Ross K. >> Right. Just to clarify that, we don't take any action on any items tonight. This is discussion only. That doesn't mean that there won't be a future agenda item in a future board meeting that we do take action on. But this just getting information. >> This helps us get feedback and and have discussion, start those conversations and and look at possible policy changes or other things. Okay, once again, three minutes and
023use all your time or don't. That's up to you. And um I'm can't wait to hear what you have to say. I I guess you are the host for Emma, the host family. >> I'm the host and I'm also the local coordinator. >> Okay. >> First, I was a local coordinator. I was the one that u I had the great pleasure to work with High School for the last 13 years. During that period of time, we've been very fortunate to have 41 of my students attend in Grand High School this year. You've seen what Emma is like. She's a wonderful girl. I have a whole speech, but I can't see it any better than when she >> She did a great job. >> The only thing I would ask is there are six exchange students
024in the school. Five of them are juniors. Emma is a senior. While I would like to see all the exchange students offered the opportunity to walk across the stage and be recognized as exchange students, not to receive a degree, not to receive a certificate of of completion, but simply to be recognized. This happens in other school districts. Uh we first host an exchange student in 2003 from Germany. Uh she attended a large high school in North Texas. At the end of the year, she got her cap and gone. she was presented at graduation. This happens in other school districts that allow the students to to graduate. There is no prohibition either from the TEA or regulations that says in fact the TEA says that exchange students are not prohibited from attending graduation ceremonies. There are
025specific requirements that [clears throat] you've already laid out about those students that can actually graduate. We are not asking to be included in that. We just simply think that can't we do both? Can't we honor the students that are graduating and honor their accomplishment at the same time recognize the contributions of these exchange students to your school. They have touched hundreds of lives. We are in the education business. You are in the education business. What better way to learn about the world than for people who have lived in different parts of it. Uh again, I'm very pleased to have worked with Grand the last 13 years. It's been my honor. Uh I love the kids that have come to this high school because without exception, they all had a wonderful experience. I've worked with high
026schools. I have placed over 200 exchange students in the last 12 years in high schools all around Texas. And I will tell you that the students that come to Granberry always have a wonderful experience. I look forward to them coming. I look forward to meeting students like Emma and watching how well they do uh in their new environment. I know this is a change. I'm just asking that we do [clears throat] both. We honor the graduates and also allow the students that don't meet the requirements that are here at the invitation of the department of state for the purpose of improving relationships with other countries to have the opportunity to experience one of the most important things in their lives and that is to sit in the graduation wear a cap gown and say thank
027you for coming to America. >> Thank you Mr. K. Um, out of you said you've placed over 200 exchang exchange students all over Texas. Um, are there many other districts that have a policy like this or is it your experience that the majority allow? >> There there are there are some that have restrictions. There are some that allow it. U everybody reads that provision in the TEA code a little differently. And uh I actually contacted Senator Birdwell. contacted tea and they confirmed to him that there is no prohibition from exchange students participating in graduation and that's not to say that they have the academic requirements. Now I would state also that if we can't make the decision for all the exchange students to attend graduation this young lady completed all of her requirements to graduate
028in France. She's an A student in Granberry in a language that isn't her own and at least I would like to see that something be done to recognize her accomplishments as a senior. >> Is it your experience that most of the students here miss their graduation back home as well? So, they're essentially missing out on both or >> It kind of depends on where they're from, different countries. Uh in Europe, for instance, usually starts school at the end of August. So, our kids arrive in August so that they a lot of those kids would miss graduation. It is not the same ceremony in the United States as it is in most of the world. We're one of the few places and I'm not an expert in all countries, but wearing the cap and gown is
029a special thing. It's like homecoming. It's like the moms. It's like prom. These are special events in the students lives. These are things that they see in the movies. It's that they want to experience. Uh I have had many students that have had the opportunity to do that. Uh they have either been ed introduced at the very end of graduation. Every students given their diploma at the end of that they recognize the the exchange students. I've had other schools that just simply read their name alphabetically like everybody else with no special attention given to the fact that they're an exchange student. >> Okay. And maybe we can get some more information from other districts. Any other >> Yeah. >> Can you give me an example of another district that has that policy? >> Great vine
030to flower. >> You said great viney toller and flower. >> Yes. >> Anything else down here? And I did call several districts and it is very different in every place. The thing that we have to be careful of is when I certify the graduates and so we would want to make sure that if they were to participate, we wouldn't it wouldn't be during the part where I'm certifying that everybody crossing the stage has met the requirements. And so I do that as an oath at the beginning of that part. So something to consider. I'm happy if the board directs me to bring back more information um especially from those three if you would like me to do that. Well, but I'm if I'm understanding it right, they're not asking to be recognized as graduates. They're
031just asking to be recognized as an exchange student, right? Says as a blanket statement for everyone. >> It would be a process that we would have to look at changing on our end during graduation how we handle. >> Yeah. >> So, we wouldn't just have to modify FM local. We would also have to modify >> ceremonies. the ceremony. >> Maybe we could look at how they do their ceremonies just to get some idea, but >> it's a starting point anyway. Yep. >> Thank you for the information. >> Yes, thank you for the information. Appreciate y'all coming to speak tonight. Okay. Our next um public comment is from Mr. Jim Jarrett coming to speak about HCAP. >> Yes. Thank you. And I assure you my request will be much easier than what you just experienced. Uh
032you have in front of you here, by the way, today I do represent the city of Granberry as I come make this request of the of school board. Uh but you have in front of you and I'm not going to go through this in 10 minutes, but it is the analysis of the forensic audit or it is the final analysis as we have completed now. forensic of the of the uh simple appraisal district. The first page you will notice that there is a summary document out there online otherwise I haven't checked recently that list it is a summary of the forensic audit. The individuals who did the forensic audit told about that it has nothing to do with their audit. They did not publish it. They did not prepare it. And as he says uh
033it was not prepared by Weaver and our friends got it is linked on the soul page. We have no opinion on this subject. When you go through the French audit, you find that there are additional funds just like we found in 24, 2024 that have been uh excess funds that have been diverted to areas other than those approved by the board, approved by the individual boards, taxing entities in the in the first group, we determined that there was a little over $2 million that had been diverted. It was still available and those funds were returned. Those were excess funds that were returned to the entities. I think the school got a little over 1.2 1.3 million. >> Can you pause his time real quick? >> I have a quick question. Um, you said excess funds
034in 2024. >> Uh, yes. >> That's I don't see that anywhere in here. It only goes up to 2023. >> We were determined in 2024. The 1.9 was the 20 They were taken in 212 and three up to $2 million. They were return 1.9 was returned on August 24th, 2024. >> Okay. Thanks. You can start that >> after it was after it was determined that the ACA had been t had been holding excess funds when the auditors uh snow car and Williams were replaced at the age they brought in another group of auditors. The first audit showed up and with $1 million that was take that that had to be restated. That $1 million when restated was no longer a liability on the retirement plan. It was an asset to the retirement plan. Retirement plan
035currently at the age is overfunded by about 2 to 3%. And as you look through this, you can see where that overfunding occurred in 2018 or 2016 through 2020. And the red on that uh on this on this chart simply shows that uh those the blue was budgeted you and I approving those budgets agreed that this is yes we understand what you're doing here but the red which started right at $818,000 as identified in the forensic audit was not budgeted. Those are excess funds. As you thumb through this, you'll find the minutes from the individual U minutes of the of the HAB meetings which indicate that there was a motion made to move money of excess funds to the retirement account and then later on to the land and building account. Uh so that's the
036money has been accounted for. It's right at $3.3 million. 2 million has been returned. 818,000 was has gone into the retirement plan. You will find back here a chart that also shows that $397,000 was spent on various uh actually third page to the last. $397,000 was spent on uh on uh surveys. architect fees etc. for studying and u nothing to build but for studying the process of building a new building and they a promote had promoted to build a new building for their for their headquarters the the statute and it's the Texas statute for appraisal district it's not a local statute but the statute says that any building lease etc etc will and the statute is also listed in here will be approved by three4s of the taxing entities. Not three4s of the dollars amount
037that you get, but three4s. So nine out of the 11 or eight out of the 11 would have to be approved. That that resolution never made it to the taxing entities. And and I might add that these uh uh excess funds that were moved into the budget were also never allow they were never communicated to any of the entities through amendments. They can do the the appraisal district could have amended the budget. They could have asked. They did not. They did not because that's the counsel that they were getting from their auditor. They're in your auditor and you will see those emails in here as well. >> What I'm asking is that we bring this to closure and get our district attorney to move off of let me study it one more year. This has
038been going on for three years. We now have the forensic audit. He says nothing different than what we have been saying for the last two and a half three years. and he is now bringing in, as he says in his letter, I'm going to bring in a fraud expert and we will walk through this. This is the email right here. I'm asking at some action that the action when we can take action on this that you provide a letter to the district attorney encouraging him or to move this along. moving along with we will we will pursue it as a uh I don't want to say criminal because I don't believe for a minute that any of our board members had any financial gain on this at all. This is a governance issue and if
039it's a governance issue then there's an insurance program but the insurance program >> your your time is expired so could you wrap it up and let us know exactly what it is you're you're >> I want to go ahead >> city is asking the school board to uh publish a letter to the publish a letter or or contact the district attorney in one way or the other and say you know make a decision. Is this something that You can pursue this criminal process. You can take this to the grand jury or or you can observe the or not take it. Say it does not deserve to the grand jury. Just give us the right so that we can now go to the insurance company and return $1.3 million of taxpayer dollars. The 1.3 is the
040same came out of the pot the same exact way as the 1.9 that they've already returned. So the 1.3 that you're referring to specifically deals with the retirement fund or is >> 800,000 for the retirement fund, 397,000 for our potential fees, etc. that generated nothing for >> So and so the forensic audit, which I understand you pushed greatly for. I I we've had many conversations about it. You believe the forensic audit found errors that justify that? because it's my understanding that there was nothing illegal found in the forensic audit. I think there was a $24 discrepancy, but that that money was found and allocated for properly that they the forensic got it. >> Do what? Have you read the audit? >> Yeah, it's online. The I I saw the executive summary that you were referring
041to as well that um they did not publish, but it's an executive summary of everything that's in the audit and they have their the little disclaimer up at the top on their website, but the full audit report is available on there. So is the AG opinion that was requested regarding um how to handle that money because I know that the board at the time was trying to make sure that they were following the the letter of the law and if policies weren't in place that needed to be in place and it's my understanding that other CADs not just in Hood County at the time all across Texas did not have policies um like that and since then the board has moved forward with having better policies and better processes and more transparency by posting things
042on their website as far as previous budgets go and they decided ultimately moving forward. I know that the money for the building you don't you don't build a house without knowing how much that's going to cost you first and that was discussed many times during the interlocal a um government meetings that we used to have between the commissioner's court the city council and the school district um that was presented to us at one of them. I remember Eddie Rose was talking about it because we were looking at or HCAD was looking at having that building and kind of an interlocal venture to have DPS in that building so that Hood County would have a DPS which I know probably they would very much appreciate right now since we no longer have a DPS um in
043Hood County. Uh the last one we had was in Toller and and now they're leaving Toller from what I understand. Um, but that money that was spent for the the drawings and the estimations was just to find out how much that was going to cost because no taxing entity can move forward to make a vote on whether to approve something like that or not unless they know what the budget for that is going to be. And so that was just for those services rendered and then they didn't pay any anything else out and all all the rest of that money was refunded back to the taxing entities. So, I guess I'm not exactly clear on where what you feel like was fraud or illegal, especially after the forensic audit was completed and there were no
044findings. >> Uh, your uh uh assessment of the forensic audit is wrong. There was $818,000 identified in the forensic audit that was improperly transferred to the retirement plan through excess funds as approved by the board. >> The this the back law not policy. It is against Texas law. Texas law says the chief appraiser shall return excess funds. Period. SH 3,300,000 in excess funds were not that they were not returned. And as you can see from these minutes right here, it says a motion was made by X to retain 2015 physical year access funds and to renose to the retirement plan. The Texas the Texas code is a Texas law. It's a Texas statute. It's another policy. And yes, they don't have policy. They should, but we are committed by the Texas code to fund the
045appraisal committee. They are committed to follow the Texas code. They have violated the Texas code in excess funds. They violated the Texas code in seeking uh by the way in 2019, they actually bought property and had to return it. So, it's not something that they didn't know, but it's also 12 U appraisal district board members prior to that. It's I, you know, I've been uh you need to read through the entire audit, not the summary. The summary is wrong. I mean it is a a sugarcoated uh piece that the chief appraiser put out to his advantage which I don't understand because he wasn't there >> right so I I know that was that was um back in 2016 when they did that correct with the retirement fund was that yeah >> so you know we're
046talking 10 years ago I know that all of that discussion was held in open meetings by the CAD um it was voted on there's minutes. All of that is included in the forensic audit as well. Um, and the amount that they needed to pay to fund the retirement, that's set by TCDRS. That that isn't determined by any of the taxing entities or HCA themselves. So, that's in the forensic audit and all those contributions appeared in their budgets. Um, so I'm not I guess I'm not exactly sure where you've >> they did that. They were not in the budget. These were excess funds added on top of the $2 million. Over a period of four years, they put $3 million in the retirement fund. 2 million budgeted 818 not. Prior to that, they were putting $40,000
047a year. Since then, they put in about $115 to $120,000 a year. >> And that was to fund the TC that was for the TCDRS retirement fund contributions. Correct. >> That was because the uh uh individuals at that point in time agreed to fund back to the retirement date, >> right? Because that that's that's set by C TCDRS, correct? That that we don't have control over that. They don't have control over that. In order to fund it, they have to back pay up to this many years and they have to have this much money in there to fund that those accounts. >> And that that money was budgeted, >> right? >> The 800,000 was not. You and I never got a chance to say yes or no on 3,300,000. We've received 2 million back. There's
048a billion three of taxpayer funds that are still out there that were uncovered by this budget. Why do you think I it's not my word but the district attorney is looking for a fraud expert? I think we have a governance issue. I think we got very poor direction from the audit. So if um so this was a I guess this was a forensic audit that you pushed very hard for that they did because I know that responsibility >> right and I know that a lot of the specific things that you wanted included in that forensic audit were included in the scope of work because a forensic audit has to be specific in its scope and I know HCAD was uh very um diligent in making sure that they included those questions questions, those specific questions
049that you had regarding a lot of these things. Um, that was all viewed and looked at and I mean, I'm reading through this. I don't see where any fraud occurred. Now, it does look like there was some they needed they recommended clearer policies because a lot of CADs, not just Hood County, but other CADs around the entire state did not have clear policy regarding some of those um the way some of that money was budgeted or excess funds were handled. Um but once once that was voted on to re to have those retirement fund contributions made, that became I mean that was done in open meeting with minutes taken. Um people could have showed up um and expressed their disapproval or approval of it. Um it was all done in open session and all those
050meetings are in that forensic audit. But the >> none of that was done in open session. It was done at board meetings. I'm only talking about the access fund >> the 800,000. So that has to do with the building that the facilities budget >> for the building >> for the for the >> that's been returned because it was it was transferred exactly the same way as the 800,000. >> Right. But that money was returned less the amount of money they had to pay the architecture for the services that they rendered just to get an estimate on what that was going to cost. >> Yeah. $400,000 to find out if they want to make a decision. I don't think so. Well, I think that a lot of times you have to have um studies done. I
051know of other government entities that do a lot of studies to find out which course of action is the right course to take because you have to have an idea of what that budget is going to be before you can vote on something. No one's going to go build a house without knowing how much it's going to cost them. So, that's kind of the first step in a lot of this. >> I guess you get a product. >> I'm sorry. >> You would get a product from for the 400,000. There's no product, >> right? But drawings aren't free and getting estimates done aren't free. >> There isn't because nobody voted to move forward with that and that got completely um abandoned and all that money got returned to the taxing entities. >> City asked that
052you review this and take action as you deem correct >> and the city is very clear that there's $1.2 million that goes back to our taxpayers. >> And so this this sample letter right here is what you want us to send to the DA. I think you should put it in your own language. You need to make it in your own language. >> And and that's for the specific >> county will be delivering theirs. >> And that's for the specific purpose of finding fraud to file an ENO claim. Is that correct? >> Get him to file. He has to file. I am going to take this to um I'm going to take this to a grand jury or I'm not going to take it to a grand jury. Here's the reason why. If he takes
053it to a grand jury, they will decide whatever they decide. Takes it to uh he says I'm not going to do anything with it. Mr. Neil can uh talk on this if he wants, but yeah, I'm not going to do anything with it. Then we can take it to the insurance company. And if he does if he does I I just have a couple questions. I want to make sure I understand everything correctly. If he does decide to take it to a grand jury, who's responsible for paying all those legal fees? >> What legal fees >> that for HCA if it goes to a grand jury and HCAD has to have their attorneys involved? Who >> the taxing entities fund the HAD? >> The taxing entities meaning >> and that would be >> taxpayers. That's
054right. >> That would be the taxpayers. And the majority of that money would be paid by Granberry ISD because we are the largest taxing entity. Is that correct? >> Uh, that's right. As the 1.3, the majority of that money came to the Texas to the ISD. >> Okay. Is there any other questions? And then any other comments or questions? >> Mike, did you have a question? >> So, I've been studying this issue quite a bit because it's concerning, right? When I hear I mean, I watched the commissioner's court meeting the other day and I've heard your allegations and and I'm still kind of new in this area. So, I've actually I've got the report right here. Um, what I didn't see in the report is I didn't see any >> page. >> Well, if you
055if you include the uh a I didn't print out the the appendixes. This is the actual report signed by we did well. It's got the cover letter over front. See it? >> I think so. >> Yeah. Um, what it doesn't say is it doesn't say the account fraud here. >> I know there that's not my word. the in the summary, the summary document as prepared by Jeff Law is the only place where you find the word fraud. >> So, it's my understanding that um the funds that you're talking about are misappropriated were paid to TCDRS, right? >> They were what? >> Paid to TCDRS, the retirement account. >> No. Well, oh, yes, they were. That's why they're 102 103% overfunded. >> And that's why they had to adjust their books from a million dollars in
056debit to a POS. So, are you asking Hood CAD to claw that back from the retirement system and then retirement? >> I don't know how the money will be returned and where they will obtain it, but as long as they're overfunded, I can't imagine why we would put any money in the retirement budget for whatever years it takes to recoup that. >> So, in 2016, that was a new retirement account, right? And um doesn't TCDRS, Texas County District Retirement System, that's what TCDRS stands for, um doesn't that require the entities that pay into it to create a trust fund to cover future liabilities? >> I don't know. And and it doesn't that's not the point. The point is $800,000 was not in the budget. Well, I but I but I think it it talks about
057it in the audit though, the one you're keeping. >> Yeah. Because it was it was it was inappropriately moved to the retirement. >> Yeah. >> Okay. But TCBRS does require a trust fund to cover future liabilities. >> Sure. >> And so it's my understanding from reading the audit report itself that um they did use line item amendments to move those monies over. They did not. >> They never filed an amendment. Never. >> They used line item transferring. Line item transfer is one of the first things in the audit, by the way. >> Kind of like what >> when you have a line item transfer, it zeros the budget. >> Oh, I used the wrong >> zeros the account. >> They called it line item adjustment. >> Yeah, >> that's in the report. >> And in
058fact, it says that um they don't have the the Texas law actually, doesn't it say they don't have to get approval for that? They have to notify you afterwards. Isn't that true? >> Read the definition of line item adjustment. >> So if I >> because it says that they will zero out these adjust these uh amendments or not amendments. These excess funds were moved to accounts line item and they said these are line item adjustments. And I kept asking we approved $2 million round numbers. When the final audit comes out at the end of the year, the final budget is 2 million7 pardon one $3 million. How do you approve this is it says approve budget final budget. I kept asking how do you have a higher budget knowing that you can amend the budget
059but knowing too that they have never responded. They and they acknowledge this. They have never asked for they've never asked for an amendment. >> It is a bad accounting process approved by the same auditors that you've been using for 20 years at school. >> So, if I'm reading tax code 6.06 C correctly, doesn't it say the board may amend the approved budget at any time that the secretary of the board must deliver a written copy of proposed amendment? Yes. >> Excuse the presiding officer. That's where they that's where they screwed up, right? They didn't >> keep reading. >> They have to 30. Give you notice 30 days in advance. >> Yes. Keep reading. >> And that's where they screwed up, right? >> Well, they did. Yeah. Well, yeah. Is that what we're saying? They never
060asked. They never gave 30 days notice. And we never gave three force approval. Okay. >> They did it with board action, not entity action. >> And the attorney general's already ruled on this, haven't they? >> No. >> Isn't that the first attorney general opinion in appendix A? Yeah, the one that specifically says if a good CAD board allocates these resources to a retirement account that those are obligated funds that don't have to be returned under the tax code. Isn't that exactly what that attorney general opinion says? >> No. >> Oh, what does it say? >> It says that you will take it to Are you talking about the one that's in the book in the >> I'm talking about the attorney general opinion that's attached the first document under appendix A. >> It only says
061that you will take it to the district uh judge. >> Okay. And um I've spent most of my career in prosecution. Um the DA's office is not an investigative entity. Um they don't they that prosecute con they prosecute cases, right? So what are you asking the DA to do? >> To either take this case to the grand jury or to give a reason why it should not be proceeded so that we can file an insurance claim. >> So didn't the Texas Rangers look at the hood? They walk through the building and we got a $1.9 million check the next day. >> Yeah. So, I mean, put Texas Rangers don't just walk through buildings, right? They do investigations investigator walked through the building. Okay. >> And he told me >> So, you don't blood splatter. >>
062Sure. But you don't think the Texas Rangers looked at any documents or anything? >> They did not look at these because at that point in time, we had no idea that they that this uh these this 1.3 million was a problem. >> We did know that that the building was a problem and they did move it forward and >> we all got our money back. >> So when a case goes to the grand jury, there's one reason for that and that's to indict somebody for a felony crime and have them hauled into court. Is that what you're asking the DA to do? >> Have somebody DA to do his job. >> Okay. Which is not investigate crime, but to prosecute crimes that other people investigate like the Texas Rangers who may have said no crime
063existed. Is that right? How would he how would the I can't call the Texas Ranger. The DA calls Texas Ranger >> if he feels that this is in the I guess that's way I can't speak for him. >> Gotcha. All right. Um you've said repeatedly that you're here on behalf of the city. Did the city council grant you the authority to come on their behalf? >> They certainly did. >> What meeting that? Right. >> What what meeting did that occur in? >> What meeting? I'd have to go back. It's been three or four months. >> Okay. passed a resolution. I can get you the resolution by reviewing free road by city. >> And does the city often build buildings without getting studies for architectural fees and engineering fees? >> We get a product. >> Sure.
064>> There's no product. >> So >> there's $400,000 spent for the company. So it's my understanding that there were interlocal meetings where the scope of the product changed and then maybe the governing entities ultimately decided they didn't want to fix >> spend the $6 million to build a building. Right. Um that would have been the result of the architectural fees and the studies that would have had to have been done. Right. >> No, they were paying the architectural fees up until late 2023. Uh there is the there is no resolution from the from the uh appraisal district which ever been delivered to any entity. We have had no chance to say yes or no. >> Do you need spending in this regard? >> So we did get notice of that. That's I mean so >>
065I remember the intergovernmental meeting we had >> where the architectural drawings were shown to us. >> Yes, they were. >> And we all said, "Wow, that's way too big. >> There was a product >> and that >> but there was a product. >> $30,000 worth of drawing." >> Yes. There were there were drawings. There were designs. Uh it talked about how much to be given to each one of the entities that were going to be in it. But yeah, that was that was >> that was worth 330,000. Uh the question is how did you vote on the resolution to build the building and to spend the money? >> We voted at that time that we did not want to do it. Yeah. We >> there was no resolution. There was no action taken. There was
066no action in that meeting. No, >> we all were just distraught that they were out there spending. And when they [clears throat] announced that they had $2 million in fund balance is when the years purged up and that's $2 million that got turned back probably five, six months later, >> right? >> Yeah. There was no resolution. We have not had a chance as entities to vote on any of this $3,300,000 over the last 10 years. So, it's it's I don't know about you guys. I think that all of you on this board I know that all of you on this board were elected to protect this school district and to protect the monies that are that rightfully belong to us that belong to the school district. And so, I I I it's beyond me to
067understand why we're here in defense of HCA. They're not friends of ours. They took $3.3 million that's the lion share of it belongs to this school district that's taken money out of our hands to buy buses to fix air conditioners to replace air conditioners to buy school lunches whatever we do with that money it's ours to do with and I don't know in these interlocal meetings where people were present and saw drawings if there was a quorum of the school board president who could pass a resolution and decide by three quarters that they could spend this money but they spent this money without asking us they spent well I wasn't on the board at the But they spent the money without asking this board, without asking for an amendment, which they are required by law
068to do. I'm here reading the law. It says the board may amend and approve the budget at any time. This is the HCAD board. May amend and the approved budget at any time, but the secretary of that board must deliver a written copy of the proposed amendment >> to the presiding officer of the other governing bodies for each taxing entity no later than 30 days before the board acts on it. That's the HPAT board acting on it. no sooner than 30 days before they asked us for approval to do that. And we did not approve that. This board did not approve a written amendment that was delivered 30 days in advance by three/arters of the board. >> They're in violation of that. >> From which which specific line adjustment are you talking about that we
069went on? >> They spent $3.3 million over their budget without asking us for a budget amendment >> back 10 years ago when they did the retirement fun. money is due to be paid back. >> Is that what you're referring to though? That which time because they there have been several different things we're talking about here. So which specific instance are you referring to? >> Well, I'm referring to all of those red bars. >> So you're saying over the last 10 years, we've never been presented with any budget amendment line adjustments. >> Not for these things. >> No, you've never been presented. And that's in the audit. And this is our this is the school district's money and we were elected by the people to be trusted >> because they weren't because they weren't treating it
070as a budget amendment. They were treating it as line item adjustments. >> Line item adjustment is correct for all reasons. >> I know but that's >> that's what they were classified as. >> We've used the terms holding excess funds and overfunded on the advice of of Snow Garrett. By the way, I'm glad that they're not our auditor anymore. I don't know that I'll >> we're not here to favor them doing that again. But but then here closes one. So it says holding excess funds and overfunded. So in this law, this is the law, not HCAD policy, not GISD board policy says if the amount of the payment if the amount of payments >> made or due to be made to the by the tech participating in the appraisal district exceeds the amount spent. >> Tim,
071>> yeah, >> let's let's begin. We're not going to get anywhere with this tonight. >> I'm just saying that it's our job to protect the school district. >> Yeah. And this is our superintendent to spend it wisely. >> This is this isn't something that's new. I I've met with the mayor. I've met with HAD over the last couple of years going over this exact same stuff. >> So why are we talking in defense of Had >> this isn't in defense of Let me explain. >> And okay, this isn't in defense against or for anybody. This is me trying to understand exactly where the specific fraud you think occurred happened. I think I have a good understanding of that now. trying to understand exactly what it is you want us to ask what you want us
072to ask the attorney [snorts] >> the district attorney the district attorney and trying to understand what that's going to cost the taxpayers depending on which way that goes because based on the information that I see here in any possible error errors and emissions payout or attorney fees this is going to cost taxpayers 's money. It's already been done. The the money that needed to be returned already got returned. We became aware of that because of the communication with HCAD and all of that money was returned back to the taxing entities. So, I'm just trying to get a better understanding of the specific fraud that you feel that we haven't put this on the agenda. So, so my worry is that we haven't put it on the agenda. Our public hasn't been given the notice that
073we're discussing it. So my worry is we've turned into more of a instead of public comment it's turned into discussion and we haven't we haven't posted that we're not any action on this >> I understand but we haven't posted this as a discussion for our community to respond to so we just haven't done it. So >> so I think um I have an understanding of what your request is of the school district. I have an understanding of uh the specific items that you're referring to and the specific law you're referring to. So, thank you for that information. And >> a clarifying comment, I have never seen fraud. >> Um, I think it was >> fraud. >> It was in the DA attorney. >> Yeah, it was in the DA request >> and Jeff Law's summary
074twice. He said fraud was never mentioned. Fraud was never mentioned. He's right. >> There's only one. I mean, the auditors, they're not legal. They said $800,000. should not have been taken and you know a two million should not have been taken. We got two million back. We're due. Our taxpayers are due 1.3 million. >> Okay. Thank you, Mr. Jarrett. Appreciate it. >> I still think this is easier than the young lady. >> Yes. Absolutely. >> Okay. The time is now 7 o'clock. >> 7 p.m. This with no further public comments, this meeting is adjourned.