001Roll call. Uh uh Mr. Neik, are you here? Um >> I am here now. Yes, sir. >> Miss Pearson. >> Miss Thompson, >> here. >> Mr. Bon, >> here. Uh Robert Clemens, I'm here. Uh Miss Pearson, one more time. Well, we do have a quorum, so I'll call the meeting to order. Uh, somebody will let me know when uh Miss Pearson is here, then I will add her to my list. >> Yes, sir. >> Uh, Jennifer, do we have any public comments? >> No public comments, sir. >> The uh first item on the agenda is the review and approval of financial amendment for the 2425 functional expenditure. Tammy. >> Hello. Um, so here we have presented the functional amendment for the general fund and also our food service fund. Uh, we can see here the
0022425 approved budget is in the first column and the second column is the proposed amendment and then the final budget after the amendment. We are reducing revenues uh by 1.7 million due to a decrease in enrollment. Uh I have projected um the amounts for our June payrolls that are still outstanding TRS healthcare and also um some interest that's pending for June. All of these transactions um are have been included which um shows a deficit of our final budget there of $634,800. Um we're reducing our expenses by $1.3 million as well. Um we know that uh charter the charter indicator um for number 10 talks about the audit budgetary comparison schedule um which is what we're doing today. And the um measure there is a 10% rule uh for being over or under your budget. And
003so we've taken that into consideration when preparing this functional amendment. Um we are projected to be in full compliance for our uh program intent codes this year. Uh which means we have spent the expected amount of money in each of those uh programs as indicated by TEA. Um and based on this information, our administrative cost ratio for this final amendment would be uh 9.7% uh which is would get us 6 out of 10 points. We're requesting additional dollars for function 21, 23, 31, and 41. Um most of these due to additional payroll costs that weren't budgeted for. Um, and function 31 had some additional professional services that were not in the budget. Does anybody have any questions? Do you have a uh best estimate of what our fund balance or our cash balance will be
004at the uh as we close this year out with a $634,000 deficit? >> So, if we close out at 634, that would come out of our $15 million fund balance. Uh the cash won't be we won't have an estimate of cash until we're closer to the end of the month. >> Okay. >> Mr. Pearson, are you here now? >> I'm here. Sorry. Uh >> I do have questions. Um what repercussions do we have in having uh that kind of deficit? Um, so it's going to eat away at some of the fund balance. Um, if you keep your cash days on hand, you shouldn't lose um, you know, some of the Charter First indicators have both, um, you know, a cash piece and a deficit piece. Um, so depending on on how it all works out,
005um, our cash piece uh, for the May financials was 100 days cash on hand, so we should still be okay with that. Um, so this it's just eating away at your at your fund balance. And how long do you think or do you foresee that um we'll be able to recover or can you kind of give me a timeline of what the future looks like? >> I think I'll defer to Dr. Anderson for that. >> Dr. Anderson? >> Yes. I would say that going forward um we had several things that hit us and Tammy you can say correct but you know we ended up with an attendance error that cost us what 216 Tammy >> yes >> yeah so 216 uh which you know uh we've Jim and Dr. givens and the team that handles
006attendance. Um we've discussed that. So that plays into this uh situation and then with the increased funding that we expect from the state going forward. I think and because we built our budget for next year based on what we uh hit this year. Um so I think that going forward we should be in much better shape. There was several things you know um that ended up hitting the budget that was unexpected this year. Uh, Miss Pearson, >> can you tell me more about the attendance error? >> The Well, that's what it was. It was a 216,000 basically. Um, as Mr. Clemen says, it's not uncommon, but for us that was very high. Um, and so uh it's basically submitting uh when you settle up with the state at the end of the year on attendance,
007there was some uh errors in the attendance that we had to pay the state back for. says from prior year from current year >> prior year I uh I don't think our uh fund balance that this is particularly significant uh cash and bank uh cash position which is more important to me. I'm not we don't know yet what that'll be. I'm assuming we're still going to be somewhere maybe around $6 million give or take. I think the uh most significant thing to me and uh our banker may be on the line but it seems to give our bankers a real nervous feeling about our status going forward. I think that's probably from last year the biggest uh problem I've seen is making it making her banker a little bit nervous. U and certainly if we're
008able to turn this around next year and show a surplus that uh should calm their nerves. >> So I want to go back to the attendance error. When we're talking about the attendance error, what other implications does it mean? and uh the 214 16 I mean I'm sorry uh when we're talking about we're having to pay back the state of 216 for an inflation of attendance that we reported. Is that what you're saying? >> Yes. Basically it wasn't inflate. It was just that campuses we had some campuses when you settle up there may have been uh students that were accounted for that later when we reconciled were not present. So that's kind of where that comes into. >> And how did that happen? >> Well, it's just, you know, you may have had a substitute
009in a class where, you know, or a teacher may have thought they saw somebody and but it was somebody else and counted, you know, so it just it's a variety of things um that happens. I I think uh Mr. Clemens, you can chime in, but that's it happens to most districts, but of course for RMA, it was a little bit larger this year. >> Yeah. Well, that's what I'm saying. It wouldn't be a day of attendance. It doesn't sound like it. >> No, no, no, no. It it's it's accumulative from all 180 days of school that you know it's a settle up. So it could have happened at this. So the three campuses because I talked to Jim. The three campuses where the problem occurred was Odessa, Fort Worth, and Pasadena. >> I don't uh
010don't know obviously don't know specifics. I uh do know that one thing that factors in to settle up is that uh this day and time tea tracks all students and so there are occasions when we have a student enrolled and they might also be enrolled at the same time in another school and uh when TEA puts all the numbers together uh two districts cannot get funded for the same students the same day. Mhm. >> And uh as those numbers all come together, we have u we have a lot of students come and go. We have a lot lot of uh we have a lot of dropouts from the dropout recovery school. Have a lot of students. Uh I'm thinking that our enrollment is uh somebody have to tell me maybe 3,000 during the year and
011our attendance is,00. So we have a lot of students come and go. And during this coming and going, students can be enrolled in two districts at the same time. Both districts in good faith could report them not knowing whether they're they're enrolled in their school or not, in another school or not. So that that could account for some of the correction. >> But wait, so I'm trying to understand because forward and Pasadena are smallest enrolling campuses. So I'm is it normal and I this is not my my skill of expertise. I will I will be very honest with this but I'll turn it to Mr. Is it normal to have that? I mean for the size O district to have um now we're talking about the 216 Indian Roman portion of it, right? Uh the
012question would be is one is it normally is it that high because I don't think I've experienced this in in a couple of in the last few years that I've been here. Uh that's one question and a second question I mean can take into consideration the enrollment amount of these two campuses uh how else does it affect us and it's just not on the reporting factors of finance but uh >> that's really it because that's what the settle up is that's where you and TEA reconcile and so I mean it happens uh whether it's 10 kids at a district or you know ISDS probably have way more than that um But it's where that's the point of the settle is to get together and say, "Okay, this is what we owe you." Sometimes tea owes
013the district, you know. So it it's not a like it's not a Now if it's a major now, if you're accounting for kids and they're not even enrolled in your school or something like that, then TEA may say, "Hey, we need to investigate." But when you settle up, that's your period of honesty where you make right with them or they make right with you, >> right? But I guess what I'm trying to say and I'm not trying to probe any further but well in a way I am uh um we have a very low enrollment in Pasadena. We have had for years, right? And this has always been my contention of of of explaining why the Pasadena campus uh we should reook into reook into it. But for me and I guess at 216 and
014I understand that over a period of year it would accumulate uh but it's not hard to miss under 50 students in one campus. Um and so now my question is not only on the finances aspect but how does it affect everything from our grading points and uh it just seems that now we're looking at numbers in the past that may not be reflective of what we have seen and so there's a little bit of concern in there. uh we haven't even gone back to the current budget we have now or the budget deficit that we have, but there just seems like to be a lot of questions and and that we need to ask in order get answers as to really how this is affecting uh the overall district and how did it happen? >>
015And maybe I'm over I'm maybe seeing too much into it, but this is where I asked Mr. Clemens and Miss Thompson who have the experience of working in ISD and administrating. Is this normal for campuses? Let's just take talk about these three campuses of the size. Mr. Pearson, I agree with you that it is concern. Uh I would suspect of the three campuses uh that were named uh we were told three campuses and I would not having seen anything and uh report of any kind I would assume that the u correction and uh Odessa was probably a significant amount of this because that's where most of the kids are. Uh and you're right actually it was Dr. Given, are you on? >> Sam, >> it was Pasadena, right? Was the largest when Jim told us
016this morning. >> Um, >> Pasadena had the largest. >> I don't remember who had the largest, sir. But I wrote it down. >> The three were the most. I want to make it. It's not just the three. I just want to make that clear. It's all nine, but those were the highest who had the highest issues. So, I don't want you to think it was just three campuses that had issues. It was the It was all nine campuses had some discrepancies. Those three had the highest and and uh of of the of the nine. >> Okay. >> Right. >> I would like to see I guess updated numbers for that particular year, not only on the financing aspect of it, but also how does it affect our ratings? How does it affect the overall um
017because we're basing the numbers basically we're reporting. I imagine that with the number of students that we reported before that there is going to be other discrepancies not only on the financial aspect but also on the the reporting grading things of that nature. >> I think we have to go back and look at what the role numbers are now because it seems to me that was reported >> and all of that >> our academic ratings was not >> it doesn't affect all of that. >> It has no effect. It was >> well then that's my question then. So if the grading had no effect, how did we come up with a deficit of reporting of number of students that were present but yet have a correction of or a correct amount of grading and how
018was this on scene? >> Because if a Miss Pearson if a student wasn't there, they didn't turn in an assignment. So they couldn't have got a grade. I mean unless you just given grades for based on attendance of kids here, you get a 100. That's not how that works. So therefore it's still they had to be there for star test. I mean, we can't submit, you know, I can't sit down and Dr. Given can't sit down and fill out a t a star test for a kid. I mean, they have to be there. So, that has no effect on the accountability. I mean, if a kid's not there, they we didn't submit a test for that kid. You know, they weren't online to do their testing. So, it it doesn't have an effect on your
019academics as far as that goes. Just like in a classroom, if a kid didn't in a math class, they can't turn an assignment. So, that may, like I say, and it happens cuz it happened to me when I was a teacher. I may I may be taking attendance and I look over to where Jun Boy normally sits and somebody's in Jun Boy's seat, but it's not Jun Boy and I say, "Oh, he's here." And so, I mean, it happens. It it it happens. >> I I get that it happens, but I want to know how it happened. >> I said if I No, no. I I get that, but I don't want to see examples. I want to see the actual numbers, you know? I I don't want things that are in the air and
020explanation. Like, this is not a small number. This is nearly a quarter of a million dollars that we're having to return with a 600 with over a half a million dollar uh almost a million dollars really of deficit basically when we when you take into account the money that we returned uh that is not a small issue for campuses that are really under 50 or even I mean what is the population for for Pasadena has always been a very small campus and it's not even looking at the discrepancies of the other campuses. So again, I'm going to ask I mean I get that the reporting on the you know so we're saying that the reporting for um academics for example you had 10 kids that actually took it and we're actually going we're having to
021correct reporting on academics right is that what I'm hearing >> you keep you keep saying academics it has nothing to do with it has no impact on >> not just talking about academics I'm talking about the whole number basically at this point now we're not just talking about one we're not just looking at the finances but there's an error on the finances on a number of kids that were reported. You know what else is there an error on? >> Mr. Clemens, can you explain it better than I'm able to? >> Oh, sure. >> I mean, it doesn't it it it impacts your dollars. It doesn't have a >> You're muted. There you go. >> Okay. I was just saying we're talking about attendance. We're not talking about >> the test that they're taking, the academic
022speech. only talking about attendance, who was in that seat at that particular time. And when they when TEA looked at this, they looked at us compared to a whole bunch of other schools. And if John Doe was at on our role and was at another role, then they had to decide who who got credit for that student. So that's when we talk about attendance and and we look at Pasadena, okay, in particular, they may have been the ones who had uh the attendance was scared or something. It was not what what it should have been, I say. So all I'm saying now is that this was for the 23 24 school year. Is that correct? >> Yes, that happened. Yeah. You know, it's a year lag. That was for the 23 24 school year. And
023I think with Pasadena, we've always been concerned about whether we should keep that campus or let it go. I mean, that's the conversation that I had in my head that, you know, we need to make a decision. We can't go back and do anything. It is 2.6 to $216,000 that we have to have to pay back. Now, if we need to moving forward, we need to decide if Cap uh Pasadena needs to stay open or closed. That's >> I think we've recommended it for the last I mean, at least I have. I could say that I've recommended it in the last two years, >> but this is something we should look at >> that loan and strangled us, >> you know, but more than Pasadena, it's these numbers are are concerning to me. And is
024this normal? Yes or no for a school or a district of our size? >> I think you're right, uh, Miss Pierce, but the thing moving forward, maybe we should have a monthly recap of where we are and where we're going in this area. That's the only thing I can say. for the 25 26 school year, we can ask for additional information to know where we are so that we can >> But tell me, where does the settle up occur >> or when? >> It occurs throughout the year and it's taken out of our FSP payment. >> Mhm. It's But in in what at what point? >> Throughout the year. >> Yeah. >> It's on T that's TEA's timeline. >> It al it also can go back more than one year. Yeah, >> it's very possible
025it can go back two years perhaps. >> Yes, >> occasion three years. >> Yes, it absolutely can. >> But I I I agree with Miss Pearson that for the next meeting if we had a uh a copy of whatever documentation we have from this to look at the documentation and if uh Dr. Gibbons says it really involves all the campuses to some degree. That that would be an interesting document for us to look at and perhaps understand better. I've done this my whole life and obviously I can't give a uh a really good uh defense of it. And so if we saw the documentation for the next meeting that u perhaps could serve a good purpose. >> The snapshot enter into this at all >> Bob. >> I'm sorry. >> The snapshot enter into how
026we come up with this definition? >> Not not it it can be >> on that on that foundation funding worksheet. It could be something related to uh some weighted ADA that was submitted wrong. It could be uh state comp money something submitted. It could be more than it could be more than just uh >> but in the seat for for a certain day or it could be that the butt in the seat was a special ed kid or was claiming transportation or claiming uh state comp funding. There's if we saw the saw the report perhaps it would perhaps it wouldn't um give us a better feeling about it but it would be a step in the right direction >> right it may mean something like we need to look closer to the PRS program I
027mean it's a whole bunch of factors that enter in students is that correct m doc Mr. Clemens could be a press student that we >> didn't track or service and missed some days. I mean that it's about >> anything that generates funding. >> So next question we're going back to the same question. How uh what does this mean for us moving forward? As I said, I think the primary thing is it keeps our banker on edge. Um, >> Dr. Anderson, this is Jackie Hernandez. Do you um I can comment on a couple of these items if you all don't mind. >> Go ahead. >> Thank you. Hi. Um, so, uh, Miss Pearson, I'm Jackie Hernandez. I work with with CSS, right? We have a number of charter schools that we work with and in this
028year just alone, right? I know you're looking at the deficit of $634,000 for the the general fund for the school. That's actually normal right now. And for a school a district of this size, it's probably fairing a little better than what we're seeing in other schools of this size. And that's mainly because just the whole um education system is just underfunded right now. I think as a whole your the school's books are not um overly that negative because we have been able to capture some extra revenues through some um federal grants that the school has. Um so it overall when we're when when we go into audit our deficit or the deficit you'll be looking at will not be that large. Um the HP2 bill did just recently passed, so that will help offset some
029of these negative deficit dollars that you're looking at right here. Um there will be some, you know, increases to teachers pay, but that will be offset by uh increased revenue from the state to cover that. And then in terms of settle, um Mr. Clemens is right. I've seen TEA do settle ups 3 years later. Um it's consistently changing. what they're doing is they're verifying some of the a lotments, right? So, it's not just maybe an a a person that's enrolled that may be enrolled in another school, but it also could be the verification of um you know, some sped a lotments, right? Some dyslexia a lotments, right? If those aren't verified or the state competed is not verified, then there will be a settle up in that part as well, which does cut back on
030your FSP. So I think the amount that we're talking about here is 213,000. So it equates about 18 students overall um that we're looking at over nine campuses uh if we were to equate those dollars to students. Um so in terms of error, it's not a large error reporting. Um but it is when we do talk to the schools about aotments right and entitlements that they're that they're u t um tacking on to students that we are putting in the PE system we ask that it be verified right so it seems like there's some items that um may not have been completely verified so um I'm sure the school has gone into that and looked at that and put up parameters on how to make sure that if any of those uh settle up items
031were pointed at in these type of entitlements aotments that they are are being vetted and Tammy have we done that >> can I repeat the question >> have we done that have we been able to kind of do the cost verification and again we're talking about two different things right we're talking about a 214 deficit or uh that we had to pay back or 214 um that we had to pay back on a number reporting number. Now, we're talking about a $600 a 600 600,000 uh deficit as well. Uh but going back to Jackie's point, I mean, she's saying that is there's parameters basically in which we had to cross verify. Was that how is that done? >> So, that's part of the PES. So, those true-ups are part of the PES data. >> Okay.
032Can we have that? >> Absolutely. Thank you. Thank you, Jackie. Any other questions for uh Jackie and again as as as you can see the projected deficit was 230 you know um several things too uh Miss Pearson I'll throw the other one out that contributed to this is that um unfortunately Esser funds were overspent and the general budget had to absorb 150,000 for that. Um, which I was not happy about either. Um, so again, a lot of these things are self-inflicted that that I've addressed with with staff that can't happen. It just cannot continue. Um, Dr. Anderson, I think perhaps your last statement perhaps answered Mrs. Pearson's concern. Um, with that said, I would entertain a motion we accept the uh accept the u approve uh the amended budget as presented. >> Rose Thompson, I
033move that the board approve the budget amendment for the 2425 this year. >> I second. We have a motion and second that we uh accept the uh amended budget as presented uh vote. Mr. Neik, >> yes. >> Uh Mrs. Pearson, >> I don't feel there's enough information for me to make to accept this. So my answer is no. >> Uh Mrs. Thompson, >> yes. >> Uh Mr. Bon, >> yes. >> Motion motion carries. I uh as I had said earlier, I do think it would be a good idea if next meeting we were to receive some kind of a u copy of whatever documentation that we're furnished from u from TEA to document this so that we could locate a little bit closer and perhaps Miss Pearson could get a better feel about it if
034she can see more detail on it. I should >> I think we all should I mean be a little bit concerned about this but at this point we can't get deeper and deeper in depth because of of where we are now and I think this budget deadline for submitting this budget is when the budget amendments >> uh it's got to be this fiscal year which is uh >> next week >> today the 20th we got about what 11 days 10 days >> 11 days and because of that I I want to go ahead and I'm pleased that we did approve the budget to stay in line with other guidelines. But moving forward, it as board members, we have to be more diligent of looking at reports, siphoning through them, and and because after all is
035said and done, it's on us. >> And let me let me say this to that, Miss Thompson. I was at a meeting, Jennifer and I were at a meeting this week with Joe Hoffer. And one of the things and I was going to submit this suggestion to the board. Joe Hoffer suggested that that boards should have a financial committee and that meets monthly to review the finances. And I think that that was I thought it was a smart idea. And would the board be open to that? >> I know Mr. Clemens likes to know the the hard numbers, but it would be a monthly meeting with the few board members to have a finance committee to review those things. >> I think it would be a good idea. >> Excuse me. I'm sorry. >> She
036said she thought it would be a good idea. >> Okay. >> Yes. We can't get to the end of the rope and say look backwards and say, "How did we get here?" We have to move forward and be in tune with what's going on as we move forward. >> This is somewhat uh like the uh audit presentation that'll come in November. Um we have to vote to accept the audit. We don't have to necessarily like the audit. we don't have to approve of it uh in that we don't approve of everything that's in it or anything that it resolves but in effect we have no option but to accept the audit from the auditor as he presents it and as the business office always presents it. So this budget was somewhat same. We don't really
037have a lot of option other than to accept it, question it, have concerns. Yes. But for today, we have to uh we have to approve it either that or have another call meeting in the next 11 days. I would say going forward that uh I would like to think about uh scheduling this meeting. or perhaps scheduling our last meeting period as late as we can. I'm not sure that in my mind that um staff vacation starting is a good enough reason to delay this to even have today's meeting that we should have the meeting as late as we can to have the best information we can have. And >> I asked that Mr. Clemens if the meeting could be moved to next week, but it was decided that it would be today. >> Uh well,
038>> I just Yeah, just going forward next year and years to come, I I think that uh we certainly could consider having this meeting as late as we can. I know one district that I have worked with in the past, they're having their uh their meeting Saturday morning of next week. I don't know what day that'll be. Let's see. >> 27th 28th. They're having it on a Saturday morning on 28th to have it >> as late as they can have it in order to uh in order to have the their very best information and time to put it together. And uh >> I don't know. >> We do understand that they're moving. >> Let me ask Jennifer, what was what was the logic for having it on the 20th? Can you remind me because I've
039forgotten. >> Um so the 20th, >> yeah, so the date was already established at the annual meeting last year. Um and it was it was part of the um >> approved calendar. >> The approved calendar. Yes. And um at the time that I remember, nobody mentioned anything about changing the date. There was no input on this specific meeting. >> I requested that the >> meeting has already been approved for next year, but we can amend that to push it later if uh Mr. Clemens would like it like if the board would like for it to be later. Correct. >> It should be later because the numbers that we have are still rolling numbers. Is that correct? >> Yes. That's why Tammy had to project. And that was one of the things the year before uh
040now I'm going be transparent, the year before the board wanted her to project out because we were trying to get it uh done. So it it's just like I say it it but if you want to push it to later then we will push it to later. But last year the board approved the calendar for the 20th. So um >> I I I think it needs to be >> later. Uh but also I uh I don't necessarily accept the fact that uh it can't be done doesn't have to be projected. Salaries should be acred. uh purchases, purchase orders, uh there might be uh that should all be acred and things that haven't I I think that's all can be nailed down. It's just a matter of time. Uh we'll have a little bit different situation
041this next year. Uh we'll have another uh uh a level of accountability. the changes we're making in our uh back office uh we'll have a different different accountability chain um >> right and even then yeah as board I think that if it was something that we needed to do at a later time we wouldn't object to at least I wouldn't um if it was suggested or needed >> so then Jennifer we have it for next year on the agenda the calendar that was approved Friday is that correct >> yes but it's it's uh so my understanding Does the board want to move it to the very last Friday before central office leaves? >> So, we'll bring it back the next board meeting. I >> I don't think we have to make that decision today. We
042can make that decision uh >> as needed. >> Yeah. As needed. Yeah. >> It doesn't have to be on a Friday. It can be on a Wednesday just so we can get everything in. And another thing that came up was that you know this deficit is because of that ESSA funds too. I remember that things that played into a >> lot. So it's it's it you have to have the big picture. So uh like Mr. Clemen said, we don't have to do that today, but it that meeting does not have to be on a Friday. It can be on a Wednesday or whatever. >> Right. And it sounds like it needs to be a larger meeting with more information than we have presented today. Didn't >> Well, I would ask Miss Pearson that you and
043Mr. Clemens, y'all get together and decide what information you want us to bring. Um, and then we can we can provide that information ahead of time so that you all have uh but if we don't know what you're wanting, we don't know what to provide you. >> I think basically what we want is full picture of what TEA is saying to us so that we'll know how to decipher and come up with a clearer picture of where we are. So reports that you get from TEA just make them available to us. Okay. So, uh, Jackie, do do are you you you have an understanding of what that might be? >> Yeah, I think I do. Uh, Dr. Anderson, and I would, uh, you know, work with Tammy to show you guys some stuff, um, to
044see if it'll be acceptable, answer the questions, >> and I'd like to be on that as well. >> Thank you. >> So, we have approved the budget as amended. Uh, Next item on our agenda today is >> Mr. Clemens. Before you move uh to the uh next item, I just want to make announcement to the board that I'll we'll be leaving at 11:30 today if we're not finished by then. I have an obligation uh that I cannot miss. >> Okay, understood. And we we do have a quorum so we should be able if necessary but I I think we should be we'll see should be through. Um uh next item action item on the agenda is back office support proposals. Dr. Anderson. >> Um so as you as you know the board has uh uh
045decided that the district is going to move towards back office of full support. Um, and we had uh two uh that we were going to uh select from. Now, Mr. Clemens, you asked for a contract, but um neither were were going to provide an actual contract until we had worked out all the details. So, we've got to decide which one you want me to work on getting the contract from. Um, so we still have the proposals. Um, this is what I'm going to state. Simple facts. Um, one, we are currently with Charter School Success. We've been with them now, Jackie, what, five years, I think. Um, and they currently have our operations. They currently have been assisting us. They provide the HR support services. They provide the PES, they provide some support, very little support
046for the federal grant side, and then the business office, a lot of the financials and things of that nature. mailing, you know, doing the pay the checks, you know, the direct deposit, all that kind of stuff and facilitating all those reports. The second person uh is uh Kimber Fello, and that company uh I think she's been very aggressive to get our business. Um I think maybe a smaller outfit, but I think she's very willing um to work with us. Uh we had some conversations this week about uh the supports uh HR support and uh she does not have that readily available but her response was that she would contract it out um that she could contract it out and I asked her well what impact would that have on the price that she's uh given
047us and her response was that she would absorb that cost. So, um, but both companies are willing to do a one-year contract with us. CSS has agreed to do a one-year as well as, uh, Kimber Fello. Uh, and so those are the facts. Uh, I'm open to questions or discussion. Dr. Anderson, would you guys like me to jump off the call? So, >> yes, if you would have time. >> It was nice speaking with you guys. Thank you. >> Thank you. >> I u I think we uh consensus the board had really settled this in our last meeting. Uh and again while uh it wasn't unanimous decision I think that decision has been made I think we made it last week and so the u thing to do is to go ahead with that decision
048that was expressed at the last meeting in executive session >> which is CSS. >> Yes. And so then I asked the board to give me permission to negotiate uh and execute a contract with the company. U I will not execute it until I bring it to the board, but to negotiate the contract and come back at the July uh 24th meeting with the actual contract for the back office. And I uh I do think that the uh same factors that we talked about before the one-year contract and the uh it will be but you know all still stand and the uh also just again for information purposes uh all or at least the other two two of the three vendors who made proposals do use u contracted employees as well as direct employees. So contracting
049things out is uh fairly standard in the uh back office industry so to speak. Um absorbing the cost may or may not be but contracting things out of standard. If we >> contracting services out is the wave of a lot of organizations from the military all the way down to school everything contracting is a common element in corporate America now. >> So u it says this is an action item. Do we >> Yes. I need permission to negotiate the contract with CSS and bring it back. I'll bring it back to the board before I execute it. >> So, there is a motion, Mr. Clemens, there. Do I have a uh a motion? I uh I would make a motion that we authorize Dr. Anderson negotiate a contract. It's in the parameters of our discussion one-year
050contract. Uh bring it back to us at the next meeting uh for final approval. Uh do I have a second? >> Second. have a motion to second that we authorize Dr. Anderson to negotiate a final contract uh with CSS u vote Mr. Nim >> yes >> Mrs. Pearson >> yes >> Mrs. Thompson >> yes >> Mr. B. >> Yes. >> Motion carries. I uh I think that ends our list agenda items. A public comment. U did we have any public uh comments before or now? Josh. >> No public comments. >> Okay. I I think at this time uh I want to go into close session. uh this portion of the meeting may be closed to all but essentially was deemed necessary by the board. Uh we want to uh as it says in a discussion
051regarding real property deliberations about real property deliberate purchase exchange lease or value of real property deliberations in an open meeting would be detrimental also u it won't that that'll do for right now. So, we go into close session. It's 10:46. U Jennifer, can you handle logistics of this? Get us in close session. >> Yes, I will. Give me one second. >> Mr. Clemens, I believe you're on mute >> now. So, we're back in regular session coming out of executive session. It's 11:54 according to my list. Uh, all the board members are back except Mr. Val. He has left the meeting. He had to go to another obligation. Uh, we have any other business needs be uh on the agenda today or anyone object to adjourn the meeting? >> No objections. >> Meeting adjourned. See y'all
052uh in July. All right. >> Thank you. Jennifer, can I get the start time for the meeting for the close session? >> Hi, everybody. >> He's Mr. Brown is not here, but he has the information. I'm sure he will get it to uh get it to me to sign and get it to you. Okay. >> Well, I have the minutes, so I can go ahead and just I'll do one real quick and then I'll send them over to you, uh, Mr. Clemens, for signature. >> That'll be fine. >> Okay. Super. But I just need a start time for the close session. I didn't get that. I'm sorry. >> No, sorry. I was on mute. I was talking, but I was on mute and I didn't realize that. Uh, the start time was at 10:46. >>
053Thank you. >> Have a good enjoy your break. Thank you. >> Thank you. Have a great day. Have a good weekend.