001All right, >> great. All right. Well, good morning everyone. We're going to start the audit committee meeting. Uh we'll start off. We have no one for public comment. Um and so we're looking for approval of minutes from October 8th, 2025's work session. >> We'll turn that over to committee to approval. >> Do we do the motion and then second and then vote? Is that I don't know. No, that's not necessary for committee. You just need to >> Okay. Okay. I I'm in favor of the minutes. I also know I mean the minutes also mentioned the fact that at the last meeting there weren't enough of us there to approve the June minutes. So, do we need to do that? Also, >> if the committee has had an opportunity to review the June minutes, then yes,
002you can approve them. But if you haven't had an opportunity to, then we can table that for what will be the May meeting yet to be officially. Okay, I'll leave that up to to you to different ways. >> Um maybe I'm the only one that went back and looked at the June minutes then, so we can maybe wait on that. >> Okay, we can table it until the May. But is the committee in consensus to approve the October 8th minutes? Uh I am I don't know about other others >> Jed and Heii if you will if you agree with the minutes could you give a thumbs up or a statement as to not agreeing >> I I was not in at the that meeting um but I mean the minutes look fine >> yeah I
003had just given birth at that time so I wasn't present so I don't really want to >> okay I can make a note that uh Christy approved them but the committee as a whole did not due to lack of presence. >> Okay, >> very good. So we'll move on to discussion items 4.1 which is a review draft uniform guidance report. We have Dwayne shown from inro here with us. Dwayne welcome and if you'd like to give us a review that'd be great. >> Good morning. >> Thanks everybody. So, if I can was going to share, but I guess I I won't. Um, I don't know if Emily, do you have it or does somebody have it? Maybe you put it up on the screen. >> I can. Yep. >> We got two Emilies going on
004here. Um, could you do us a favor and explain how this is different from the past singotus? Maybe you've already got that as a plan to do. >> Happy to. Yep. Yep. So um again good morning everybody. So so typically in the past uh we have prepared the single audit reports um at the same time that we have prepared the regular district um audit audited financial statements all of the letters all the other documents. Um this past summer uh the office of management and budget was delayed um in producing the compliance supplement. Uh the compliance supplement is an annual document uh that gets put out by OM um and it gives um audit firms guidance for how to conduct single audits including all the details you know changes in programs um uh changes in regulations
005all of that information you know it's a several hundred page uh document typically gets put out in May or June um and it's, you know, something that we can use to conduct the audit. Um because of issues at the federal level, the compliance supplement this year didn't get issued until um Thanksgiving time, almost I think it was the week of Thanksgiving, uh when they finally issued it. Um and because um uh state ed requires that your reports be submitted by October 15th, this year we separated the reporting. So in October, you'll you'll recall um we prepared and we issued the reports on the district, you know, the audited financial statements, the extra class reports, all those letters. And then um the the uniform guidance information as I said the compliance supplement came out in November.
006Um over the wintertime we worked on the single audit components of the audit and that's what we're um issuing or that's what we're showing you today is the reports um related to the single audit. Okay. So that's that's kind of why this is a different process than what we're uh than what we're used to. There's nothing wrong with doing that doing it this way. Uh a number of audit firms have typically done it this way. Um you know we've usually put them together but um but again because of the the issues at the federal level uh we were kind of forced into uh separating them for this year. So, um the good news is if you um um look at the uniform guidance report that you have in front of you and if you would
007um actually scroll all the way down to the very last page of the document because that's really where the the the results are. So, this this last page of what you see in front of you um is a summary of the results. Um, so the first couple of sections here or the first section, the financial statements section of this, this ties back to what we issued back in October where we issued an unmodified report um on the financial statements as a whole. Um, and our report on internal control and compliance over the district um um identified no material weaknesses, no significant deficiencies, and no non-compliance. in the middle of the page that federal awards section and the rest of the the pa the rest of the page down. This is part of the single audit
008presentation. Um so every year we tested uh or we every year we have to select certain federal programs that we test. uh for the for the June 30, 2025 audit, we tested the special education cluster. Um and our test of that program identified no material weaknesses, no significant deficiencies in the control system um and no non-compliance uh with laws and regulations. So we're issuing a a clean report, an unmodified report um over the single audit. Uh and then all the way at the bottom below the you can see you know which program um uh we tested again the special education cluster uh the dollar threshold um is um for the June 30 2025 uh $750,000 just a point of reference going forward it's going to change to a million dollars for June 30 2026 uh
009due to changes at the federal level. Uh the district is a low-risk audit uh because we haven't uh had findings the last couple of years um and again we had no financial statement findings uh and no federal award findings. So uh so this page um is all clean and then if you would scroll back to um to page four of the document. So, this page is a list of all of the federal programs that the district um administers. You can see a total of uh total of about $6 million in federal money that you know most of it passed through state ed. Um uh and then you know the district spends it. You can see the special education cluster is that second group down uh about a million and a half uh in total funding
010there. Uh and then the other programs, title one, you know, another 1.3 uh the school lunch cluster uh down at the bottom about 1.9 million. Again, every year we need to kind of rotate those programs uh to determine which ones get tested. um we have to test every program at least once every three years. Every program over that type A threshold of $750,000. So for this year, special education cluster uh was the one that was tested. So that's that's kind of the highlights and I'll take any questions. >> I'll jump in and say I didn't have any questions on this. It looked pretty straightforward and all good news. >> Yep. Yeah. >> Great. Thank you. I don't think there are any other questions. >> Okay, great. Um, so I'll just mention to kind of to
011kind of wrap up. So, you know, the final steps, as you can see, this is in draft form. Uh, we're going to get the management representation letter out uh today. That's just a, you know, a letter that confirms that everything that we got is everything we need to complete the audit. We'll get that back uh from the district. Then we'll be able to date and finalize the report. And then once we finalize this report, there is a a data collection form which is a document that gets submitted to uh the federal audit clearing house. Um and that document um um you know just summarizes the results of the audit. It includes um a copy of the audit report uh and that all needs to get certified and submitted uh to the clearing house by the
012end of the month by March 31st. There is a 9-month uh after year end deadline uh to get this submitted. So we'll be getting that taken care of um early this week and get it wrapped up. Excellent. >> Um Dwayne, I know that I expressed my appreciation to you and your team and uh personally and I wanna I want to say that publicly um that this was a difficult one to get through because there was uh it was it was auditing in time when I wasn't necessarily doing this. So pulling the information together and you folks were so patient with me and I appreciate that very much. >> Happy to do it. Yep. You're welcome. All right. Thanks everybody. Enjoy the rest of the meeting. >> All right. Thank you so much. Appreciate it. >>
013Okay. Bye. >> Okay. We'll move on to discussion item 4.2 unless there's any questions or comments about 4.1. All right. Very good. 4.2 is a review of the 2425 corrective action plans for the extracurricular activity funds. If you wouldn't mind leading that one. >> Uh yes. So these are the uh letters that we collect from each of the extraclass activity funds, the high school, LACS, uh Boon and Wit. Um and their um uh review of the findings of the extraclass audit for the 2425 uh school year and their uh recommend well following up on the recommendations what they will be doing to try to correct some of the issues that were found um in the audit. Now quite honestly some of these um issues that are found are findings in these audits are typically things
014that happen due to the changing changing of the guard if you will of the extraclass clubs um with the adviserss and the student representatives. So they're going to be unfortunately they're they're going to be findings that perhaps we see again but they're always trying to strive and uh create a better uh controls of the deposits. A lot of them would be the c the receipts not getting deposited as quickly as they should be. So we are always working on that. Um and these are the letters that they uh present to us and then we file them with the SED. Um so then we can wrap that whole 2425 audit up. >> Thank you. Any questions regarding the um extracurricular activity funds section? I guess my only question is um what is the procedure for following
015up on the plans for each of the schools? Like just because um like the Boon one in particular had some comments on things they were going to try to do or things that they hoped would happen. and I just didn't know if there's some point where there'll be a check-in to see if any of the things had happened. >> So part of the that's a great question. So part of the process is to to u to employ a checks and balances system with us so that we can make sure training is changed and modified to meet the needs of you know the corrective action plan. So that's something that's on us to do and we'll we'll keep watching that as as the year progresses. >> Okay. Yeah. like the just as one example, one of
016the things was about um they were going to provide ledgers to each adviser in the hopes that they would show student treasures to how to fill them out and I I don't even know if I don't have any insight into this, but like do the adviserss have training and know how to show the students how to do it, >> right? >> But that's just an example. So, >> sure. No, good point. >> And we'll follow up with that. Absolutely. Okay. Thanks. That was my only question, but >> good one. >> Look like they all have good plans in place. >> Great. Thank you. Any other questions? >> Okay. The second uh review or the um was it for the internal audit was the the time card or timekeeping audit financial report. So u we are
017we I should address this this way. We are actually looking at different systems instead of using oldfashioned time cards. We're actually looking at an electronic version to to mitigate some of the issues that were reported in this particular uh in this particular audit. So that's something we're trying to work through this year and into next year that we hope will help with some of the issues that are expressed here. So that that's a real quick summary of what's in that very long corrective action plan. That's really the issue. >> I have some questions about this. Is now a good time or should we wait? >> Oh, no. By all means. >> So, I I was thinking about this issue. I read through the report and I'm con and and I don't know if I'm concerned,
018but I'm I'm interested in knowing a little bit more about this issue. Um, do you do you think we have a culture of an issue with this the inaccuracies? What is sort of the genesis of these issues? Could this have been fixed with better training? Is there a lack culture around timekeeping? I is there a bigger problem here or are we just spot-checking and there are a couple of issues with time cards? Um and is this material? What is the cost of the inaccuracies? And then you know if we are thinking about a system you know what would be the cost of that system? Um and what would be the ongoing maintenance of that system? Is that going to cost more to correct these issues than what these issues cost us? And so that was
019my line of thinking and I I was wondering if you guys had some some thoughts on that. >> Sure. So those are all the thoughts we had going into this. I think that's one of the reasons why we're looking at a more efficient system of uh clocking and clocking up. I would say this is more of a a systems issue than it is culture. Um the old way of utilizing time cards is is not very efficient especially today with the way that um that our schedules are and so on and so forth. So uh we are transitioning to more of a an electronic version uh of this where you swipe in and swipe out so that kind of keep track of hours uh more efficiently. So um I wouldn't suggest that it's a culture issue.
020This is again more of a systems problem more of an efficiency issue. >> The heyi the system that we are looking at is uh a module that attaches to our financial program. So it's all part of that. So, it's not a totally new system to us. It's actually going to incorporate right into the financial program we currently use in the payroll in how we run the payroll. >> And I was curious, why wasn't a supervisor approving time cards? And if you were to implement, you know, what if we tried for a month if a supervisor is approving the time cards, you know, we've done a better training on this and then we ref and then we do a spot check of how time cards are, you know, is there an interest in that or are
021we saying we're we're we're transitioning to an electronic system? And I'm not opposed to it. I think that would be great. I just, you know, worry about cost, especially since everything is going up and if we're going to implement a system, it's going to cost like $60,000. It will be $30,000 to maintain every year. You know, how do we explain that to people? So, you know, those are my immediate thoughts. >> Yeah. No, those are all great thoughts and I I don't I don't think cost certainly there's a cost up front, but I don't think there'll be a maintenance cost to that effect. And there are a number of other districts that have already employed this because one of the concerns I would have is that even even a supervisor's oversight of so many cards
022and so many times that are associated with these um schedules would be difficult to to maintain. So having a more efficient system that can that can that can oversee this seems to be the right course of action and certainly what other districts have done as well. And and so back to the question of why was the supervisor not approving the manual of time cards, right? >> Okay. So um this partic the bulk of it um actually the supervisor was reviewing a spreadsheet. So the number of cards are coming from this particular department where some of the findings were I'm not going to say that there isn't an occasion that a supervisor may not sign a time card but this particular case um because of the number of time cards what we implemented was a spreadsheet
023where it brought all those time cards together. The supervisor would review the spreadsheet but the signature would not land on the time cards. So because of the number of time cards, the auditors did not like that, which I understand. So they didn't like it that there wasn't an actual signature on the time cards, but there was review being done by the supervisor of the spreadsheet that was pulling all of that time together and being um sent in to the payroll office to be uh put in. So there were misses on that. So that is something we are addressing. But that is really the reason that the signatures weren't it was not that they were not being reviewed. It's just the signature didn't land on the time cards. >> Okay. So I guess I'm just trying
024to summarize and also pardon me. I'm postpartum 5 months. So some of my thoughts are a little goopy. So we've got the system where doing manual time cards. It's going to an Excel spreadsheet. A supervisor is reviewing a big spreadsheet. And so we're saying we're going to transition into a system. Um so then my questions become we move into a system but then if the human component um if the review is not happening well then that system is not that great. So we're saying we're addressing with that supervisor the reviews moving into a system we're hoping that um we have better checks over these things or a better way to um implement technology to make sure that we don't have these inaccuracies. How how do we sort of address some of these issues through the
025new technology? Okay. So, this uh system that we're moving into um has certain levels of approval similar to what we do for a purchase order process where it's um information is entered in at one level then the supervisor super supervisor has to approve in another level then it comes down and it gets approved at the main level which would be payroll. So it is a until the supervisor approved it will not go to the next level plus it will also put better eyes on the attendance. So because it's going to be all electronic and incorporating right into the program that we currently use there will be a better tracking process and because of those um approval levels that will correct that issue as well. >> Okay. And then would the technology address some of the
026findings like you know if you have lunch it sounds like we're not paying for lunch or or you're not recording time during lunch or would it be able to automatically build that in so that we don't have those findings again? >> Well I think yeah partially so the program is a swipe in swipe out the cards and swipe in or monitor not swipe back in when you're done that kind of thing. So what we're trying to do is eliminate some of the h the potential for human error in this. But of course that still might exist. But um that's one of the ways we hope to address this and so so that you're not relying on someone to sign in sign out um having someone else do that for you. So some of some of
027what you're seeing is because of human error aspect here. >> Okay. So then I guess I've asked a bunch of questions. Next steps would be this moves to the bigger board. Would they then you know say okay let's move forward with this with the system would they also be asking questions like what is the the cost of these errors and then what is the cost of a system to fix it and and again what are those amounts do we know right now and and also what is our role in this do we approve this moving forward or you know um uh what what does that look like >> so the system's currently being implemented so we're already doing this not not just for the the um area that you're looking at, but global. So, we're
028doing this across the board to try to uh make the whole timekeeping process more efficient. So, it's not just with this particular group, it's across the district. Uh so, we don't have the overall cost factor of all of the errors that were created due to human error. We're assuming based on this one snapshot that it's probably there's probably a larger issue that we're dealing with. So, uh, our hope is that what we're employing will help mitigate the the larger issues. >> Okay. I guess my only recommendation then would be maybe we need better training around this around, you know, if you take a lunch, this is what you do. You would need to make sure these are the periods of time and things like that. I wonder if there is a an opportunity here to
029better train people to avoid some of these instances again moving forward. Even though we're going to implement new technology, it could be a good time um to to re-educate people. >> Absolutely. Absolutely. >> Tom, how many staff does this involve? >> Uh picture of that because it's most the EA most of the support staff, >> right? >> Say two 250 300. >> Yeah, it's right >> off the top of my head. >> Right. And this looked at just transportation staff just for the audit purpose. So small snapshot of a larger group. So >> did you hear the question? I'm sorry. I want to make sure you can hear. The question was how many staff does this impact overall? And so the answer was between 250 3 250 and 300. And the audit looked at just
030one small part of that which is transportation. So >> great. Any other questions and thoughts? And thank you for the feedback. It's uh very helpful. >> I don't have any other questions. I think I asked all my questions at the October meeting when we went over the findings. >> Thank you. >> Very good. Okay, we'll move on to discussion item 4.4, which is our area of focus for 2526 with the internal audit. And I can throw that back to the group. you have some thoughts, but I'll ask you for your question. >> So, I had a question. I know that um last year when we were talking about this, Sean had said he was going to try and ask the business office to come up with sort of a proposed schedule for the next few
031years just to see what might come up over time. Um because so last year it seemed like the uh payroll was already kind of decided which was fine because I think most of us didn't have enough institutional background at that point to make a recommendation otherwise but I had suggested based on the New York State comprollers office guidelines and what had been looked at in the district in the past that some of the things that should be coming up are fixed assets, transportation inventory and um and it even though it wasn't that long ago, so much had changed from or has changed from whatever it was 2012 or 2013. Um, so I don't know if if there is kind of a proposed schedule or or at least a proposal of what should be looked at
032over the next few years for us to pick from. >> Sure. Uh, we have one one idea at this point which is purchasing procedures. that was number one on our list looking at that overall but fixed assets would certainly be sorry we have a slight tight but uh aside from that we purchasing was number one I think fixed assets is great idea we was relatively current I thought I thought it was closer than 2012 12 and that was more recent than that because we're on and I'm sorry what was the other >> uh transportation >> in so no we don't have a list that's right now that's our our thought >> okay I mean I'm I'm okay with um purchasing procedures if that's the area that you've identified as as important But I do want
033to know or I I would like to see transportation inventory and fixed assets at least as planned for the next year or two. >> Um >> just based on the New York State comproller guidance. >> Sure. >> I don't know how others feel. >> Hey. Hey. And Jed. >> I think that sounds good. One of the reasons why we chose purchasing as as an option is because we have not done one in in recent history quite a while and that seems to be that's also an area to controllable target for down the road. Purchasing is a very >> important but by all means if fixed assets an area you want us to look at that's or transportation inventory that's that's great. >> I think I I mean I'm okay with purchasing procedures for this coming.
034I know we can only do realistically do one per year. Um but then maybe of those three the fixed assets transportation inventory and information systems if over the next I don't know how long to you know few months if you could kind of figure out among those what should be the priorities at least tenatively priority unless something else comes up but tenatively what of those should be the priority to be scheduled over the next couple years. >> Sure. We could do that >> would be I think helpful. >> Absolutely. Sure. >> And again those might not all be the right area to look at. I just um given what the comproller had put in the put in their guidance. >> Sure. >> Looking at them at least might be. >> So we'll throw that out
035there. U when decision >> they'll come in May to start that part of the audit. Um, so we can let them know and then we can we can outline what they will um be looking at in a purchasing audit so you can have a better idea coming into it and then we will definitely get you a schedule um of what has been done, what years they've been done and going forward what types of things we can do and we'll get that out to you. >> Okay, great. Thank you. >> Part of purchasing audit might be this be a bit of a stretch but it might be how we inventory inventory purchases as well. So some of that would be part of that process, but that's that's discussion we can have with them. >> Okay, that
036sounds good to me. >> You limit it to one area. >> We can. >> Yeah, unfortunately. >> The internal audit, they do a risk assessment audit. That's a review of the same things every single year. And they and they just show that that's part of that five-point plan that the state has implemented for auditing. and then they do a focus. So it's like two separate odds. You have the risk assessment and then you have the focus. So the focus is what we can drive if we see there's some area we want them to look at or we can set it up as a schedule. >> Great. Any other questions there? >> Okay. Very good. All right. The next area is 4.5 is the auditing service request or RFP. Yeah. Um I think we might be
037slightly behind on this. Um every five years, it's actually a three-year contract that we can have with our external or financial auditor Dwayne that was just with us earlier. Um and then you have the opportunity to extend it for two years. So basically every 5 years we should be doing an RFP, a request for proposal um to gather information to see if we have any reason or need to change um our external auditing services. Um so to get us back on schedule with this RFP, we're recommending we do an RFP this spring. Um now we have been with Insuro for quite quite a few years. They do very well for us. They change up the um folks that come in and audit us on an annual basis. They enter new folks in with new eyes
038looking at our our information. So the the process of the RFP really is just to comply with what the state regulations are for auditing. Um I don't want this to be perceived as we have any issues with our current auditing, but it does bring to light other auditing firms out there and then we will review and um see where we want to go. So, I have an RFP prepared. Um, my hope is to get this sent out and hopefully um have have it uh all finalized in the beginning part of May. Um, I was looking at some dates with Emily and we know that we're running into the uh the vote. Um, and I think there were some meetings maybe been scheduled the meeting of the the week of the vote um that we may
039want to be uh changing around maybe bringing earlier. So my hope was that maybe we could pull in the audit committee with the finance committee and making this recommendation um reviewing the RFPs and making the recommendation going forward and that'll be probably early part of May. Hopefully we bring it all together. >> What firms are you planning to send an RFP to? >> Well, we'll we'll throw it out to the firms. I know in will definitely be one of the ones. Um, in my in my experience with RFPs, usually you get um oh, I think I'm not sure what they go by now. I can't remember their new name, but you'll get firms out of Rochester applying. Um, you'll get maybe another couple firms in this area, but we'll advertise it and then we'll send
040them out to any firms that request them and then we'll also send them out to local firms. Um, I don't have a list to answer your question, but I know that usually you get, yeah, you might get three or four that respond to the RFP. Sometimes you might only get two, maybe even just the one. Um, but it reviews and it's all it the RFP is very specific to all the needs in the major audit and the single audit. Okay. >> Which is actually >> there actually firms that handle this for >> school districts at this point. Yeah. Yeah. I I've done some work with one of the regional firms of Rochester for years. That's one. Bonado. >> Bonado is probably one that might come out. Uh Ray Wagger's group might come out. >> Yeah.
041>> Out of the Rochester area. >> Okay. >> Um and then we have a couple locals including inel. >> Great. Any questions there? Okay. Any other discussion items? Uh 4.6. All right. Very good. Action items. I think we have an action item. We have to come up with a list for future audits and we can do that. We'll add that to our list. Any other action items? >> Scheduling that >> scheduling the joint meeting in May. >> Okay. And then after the joint meeting in May, we'll probably be meeting um and we will definitely set some dates and stick to them and give you guys a little bit more warning than we did for this meeting. And I really appreciate you um being able to come together for us. Um but we usually meet at
042the beginning of June to review the uh the function of the external audit, the financial audit that happens over the summer months. Um, and it's possible, probably not likely, but possible that we might have the internal audit at June, but um, that more more likely will be in October. I don't know if they'll have it wrapped up in a final report to give us by our meeting in June since they'll be just doing the work in May. >> We're good. I believe that's it. So a German at 7.1 >> very much. >> Thank you. Byebye.