In-Person Special Meeting of the Bridgeport Board of Education Mon 8/4/2025

001Good evening. This is an inerson meeting, special meeting of the Bridgeport Board of Education. Um, today's Monday, August 4th. The time is 6:31. I'm Jennifer Press, chair of the board. In attendance we have in person we have um Joseph, Marissa Estimera Mendes, Andre Woodson, Alva Benahan. On the line we have Aisha Cameir. We also have Willie Medina and Rob Traver. Um >> to start we do have um we don't have anybody signed up for public speaking. So we're going to move on to a presentation by Clifton Larson and Allen LLP of the Burton Clott. Let me turn it over. >> And I do not have the ability to share my screen. >> We'll give it to you now. >> Okay. >> You should have access now. There you go. >> Okay. All right. Right. So,

002can you all see the the presentation here? >> Yes. >> Okay. All right. So, um by way of introduction, my name is Emily Deo. I'm a signing director at CLA. Um I am um work primarily in the state and local um government. That's my industry uh specialization. I'm in our forensics uh litigation and investigations area. I've been doing this for 23 years. um been with CLA or a predecessor version of CLA for 23 years performing these types of forensic accounting engagements. Um working with me and and here with me on this presentation is is Leah Wyatt and I'll let Leah introduce herself. >> Good evening. My name is Leah Wyatt. I am a director in the forensics practice in CLA. I've been with CLA for about five years. Um I am a licensed attorney, a

003licensed private investigator and a certified fraud examiner. >> Okay. So um if you can see my screen here um we'll go through uh the scope of the purpose. So the the scope of our engagement um we were engaged by the Connecticut State Department um of education to conduct a forensic audit of the Bridgeport uh public schools and it was for the fiscal years 24 and 25. Um when we did our initial meetings with with uh CDSSE when we were uh first engaged our focus was on operational budget expenditures, fiscal controls and looking at and identifying any misalignments between what was budgeted and the actual spending in those categories to see if there was any uh misalignment there. and um looking at the budgeted to actual expenditures to see um what was actually budgeted for these

004fiscal years and what was expended for those fiscal years. Um like I said, our focus was on the operational budget expenditures. Um and it was it was to assess whether um those expenditures um aligned with budget allocations by category and where they didn't to identify the basis for such mis misalignment to the extent that we could. Um and then we also looked at the fiscal controls. We looked at the effectiveness um and the existence of of the existing internal controls that were in place specifically surrounding the budgeting process and um the evaluation of actual to budget expenditures. And so we looked at these controls um and and determined whether um um these controls or how these controls may have impacted um the budget to expenditure um analysis that we were performing. Our focus was not

005a financial statement audit. We were not hired to do a financial statement audit, a compilation or a review under AICPA standards. Um and so we did not express any opinions on the financial elements, the financial accounts or any of those financial items. That would be uh something that would be done as part of a financial statement audit in accordance with the AICPA which is not what we what we did. Uh we did not perform a full budget to actual analysis for the special revenue fund. Our focus was on the general fund and general fund expenditures. While we did look at the special revenue fund, um we looked at it for trends, we did not do a detailed um uh budget to actual analysis on the special revenue fund. It was only on the operation uh

006the general fund. So the way that we performed our work, we had an initial conference, initial kickoff meeting um with the state um and state officials to establish what was going to be our focus, what was going to be our scope, who were our main points of communication um and what would be the status or the cadence of our communication or our update meetings with them. After we had this kickoff meeting um and discussed some of the concerns and some of the um questions that they wanted us to address and some of the things that they wanted us to look into, we then um created a document request list that we then submitted. That document request list included financial data documents, supporting documents, contracts, a list of individuals that we um could interview and that

007we could speak with. um we obtained policies and procedures um and and various documentation that that we then used to focus um some of our analysis and some of our review that we'll get into here in a bit. So the first step uh was we conducted interviews and we conducted interviews with key personnel in multiple different areas. uh we conducted interviews with individuals from the finance um from facilities and maintenance from um just various different areas. uh we actually interviewed 10 different individuals as part of this process and the reason for those interviews was we had obtained and reviewed the policies and procedures and so we knew what the expectations were and we knew what was required per the policy and procedure and so we interviewed these individuals to gain an understanding of how they

008performed their day-to-day duties and the things that they did to see if the their performance of their duties was in alignment with the um established policies and procedures and really to uh understand what were the financial processes um that were that were being followed by these individuals in their um respective duties. So when we looked at the policies and procedures and the processes and procedures, we focused primarily on the budgeting, procurements, grants, facilities, operations and financial reporting practices. And so those were the areas that we reviewed as far as the policies and procedures were concerned. And then in our our interviews with with specific individuals, we gained access to Munis. We got readonly access to Munis so that we could extract and analyze the financial data and we could um um pull the data that

009we needed in order to be able to perform this analysis that we were performing. And as as part of pulling that MUN access, we we had a couple of different um meetings with and interviews with people in the finance department who helped us um um understand what data we needed to pull, how we needed to pull it and what codes we needed to include and what we needed to analyze. Um and then we confirmed what the information that they gave us with the data that we actually pulled to make sure that what they gave us made sense. Um and if it didn't, then we went back with questions and and got clarification on that. Once we had the data pulled down and we did some did some analytics on that. Now what is that? Data

010analytics involves looking um at looking for um anomalies, looking for trends, looking for things that don't seem to make sense when you're looking at at the whole picture, right? When you're looking at at 24 to 25 um all of the financial data for two fiscal years, as you can imagine, there's a lot of data and there's a lot of transactions and there's a lot of things that happen. And so we we can't perform um with the limited time and the limited budget. You can't look at literally every single transaction um for two full fiscal years. And so the data analytics section of of our work involves um uh trend analysis and anomalies and risk based assessments of the transactions to determine what we need to test. And then from that analytics we selected 60 high-risk

011um transactions to test for their legitimacy and their proper classification. And what do I mean by that? We wanted to look for were these purchases were these transactions for legitimate district purposes? Did they appear to be something that was for school related district related purposes? Um and were they properly classified? Meaning if it was um a payroll expenditure, was it classified as a payroll expenditure in the accounting system? and and so the 60 transactions the 60 high-risisk transactions that we looked at uh that was what we were looking for. Um as well as did it have all the supporting documentation with it? If it was a purchase, did it have the contract? Did that contract file follow the procurement policies? Did it have the appropriate um signoffs um and approvals? Um was it recorded in

012in the accounting system for the correct amount? If the invoice said $1,000, was it recorded for $1,000? Right. And so those were all of the the types of things that we looked for in these 60 transactions. We also got access to um the former CFO's email account and um we performed a targeted search of over 97,000 emails um specifically looking for things related to budget um or procurement practices or uh anything that um may have come to our attention during the data analytics, the data review, the interviews that we had performed. um any information that was given to us, we would perform a targeted search using keywords on these 97,000 emails um to identify if there was any communication uh regarding um that that data and those documents and those procedures. We were also provided

013with board uh board minutes for the last two fiscal years. And so we reviewed those board meeting minutes to identify um what what was taking place in these board uh board meetings. What type of information were you all provided with? What type of information did you have available to you to review? um what type of information was dis or what information or what topics were discussed um in these board minutes and was that relevant uh to or related to I guess the budgeting process uh budgeting expenditures any kind of shortfalls or any of that information and so we reviewed the the meeting minutes for those purposes as well and then we pro performed a year-over-year budget analysis. So, we looked at both the original budget, the revised budget, and then the actual budgets um for

014the both the general and special revenue funds. And we looked at them year-over-year, like I said, by category. And we looked for um any any large swings um in budgeted amounts, what was budgeted and what was approved um for each category year-over-year. uh we did 23 to 24 and 24 to 25 to see if there were any large um uh either jumps or decreases I guess in specific categories and then we looked to see did that make sense. Right? So if um payroll uh increased, if the budgeted approved budget amount for payroll say increased from 24 to 25 significantly, we then verified that with student enrollment. And we looked and said, okay, did student enrollment also increase. And we looked at those types of things and performed that type of analysis for year-over-year to see

015if the swings um in these various different categories made sense. where they did not. That also fed into our selection of the 60 riskbased transactions to to sample. Uh we also looked at the employee listings um to see if there were any duplicate employees in there. Um you know, one employee that was in the system multiple times receiving pay, multiple paychecks, that type of thing. We looked to see if there were potentially ghost uh ghost employees uh in the system that were receiving payments even though they weren't employees. um and that type of thing. Uh and um based on that review uh we didn't find um any any ghost or duplicate employees in the system. So the key findings there was no evidence of fraud or misappropriation that we found. Um but we did find

016that there were uh mclassifications of transactions and it appeared that those mclassifications were um um manipulating the budget to make it appear that certain expenditures were falling within the budgeted amounts. Um and it did appear that uh this was this was often um performed without board oversight. Was it because it wasn't presented to you? Was it because it was presented to you? That's what we had to go in and look at and find, right? Um and what we found with these with these budget mclassifications and misalignments was that that in the system in the accounting system there were often transfers uh moving money from one um account to another account right um and it appeared that they were being moved from one account to another account because one account in a specific budget category was

017being over spent. Therefore, those expenses were moved and shifted to another account that had budget available in it to cover that uh that expense. Um and so this practice of moving money and and reclassifying transactions and transferring uh money from between different budget categories, it obscures um the financial transparency and the financial accountability. doesn't give you as a board a clear picture of what is actually being spent in each of these budget categories. Um, for for example, we saw $16 million was transfer from a retirees fund budget account to various different active payroll accounts. Um, and and that is obviously um a a violation and it puts at risk the ability to fund the retiree account uh in the future. And and the purpose of that um it appeared was to to cover a shortfall

018or um um inability to fund um certain payroll or or other medical accounts, things of that nature. Specifically, we saw seven transactions that were class that were mclassified under just other services. One of these was a large HVAC um installation at at one of the schools. I think it was 800 just over $800,000. Um rather than being recorded under facilities or under HVAC, it was recorded as other expenditures or other services. Um and and there were large payments to uh contractors and to various different service providers um in these seven transactions and those are are detailed and outlined in your report. um that should have been to medical services or to HVAC or to various other different things, but instead uh they were classified as other other services or just this generic other services. And

019so as we found these things, what we did was we used that information um for a targeted search of the email to see was there specific direction given by anybody to um to skirt the system, right? To um um manipulate um any information and Um, based on the emails, we only found one email that showed the former CFO advising somebody to to um split out a furniture purchase into two different um to two different uh POS. And the the instructions said um you know to to avoid the $25,000 we need to split this out. However, we also saw a number of emails in which she was advising people, you can't do that because that's against the procurement policy. And so, um, there were more emails where there was instruction to to follow policy and teaching

020and guidance and direction as to how to follow the policy than there were um instructions or directions to to not. Right? The only email that we saw um to to avoid the $25,000 was this one email. But what we did find was that this budgeting process, it really was siloed in the CFO's office. She did not get and we couldn't see anything in emails or anything of that nature where she was um seeking input from uh department heads or from various different um school level uh individuals, you know, principles, things of that nature. And so it's um it appeared um based on uh all the documentation that we reviewed as well as all the emails that we reviewed that the budgeting process and the budgeting decisions were all made um at and by the CF

021at the CFO level and by the CFO with very little input uh from anybody else. And so that lack of transparency and that lack of collaboration really is what resulted in the the overspending in certain areas um because and and it resulted in retroactive budget adjustments that were then not submitted for approval. um the the budgets were just adjusted to cover various different shortfalls in other areas and those um approvals I'm sorry those um retroactive adjustments did not appear to uh receive any formal approval any formal board approval on the procurement side. Um what we what we saw from from the documents that we reviewed and from the people that we interviewed and from from um just the process in general was that the procurement process really kind of lacks visibility. Um there's um there's

022there's decisions that are being made with like I said without input um from department heads and from various different officials. Um it really there was there was a decision maker um that was making all those decisions and so there was there was a lack of visibility. Um some of the information was actually not tracked in Munice. Uh student activity funds in in particular we saw were tracked outside of Munis outside of the system. It was tracked just in an in an Excel spreadsheet that we saw um and it was not actually tracked in Munice and the facilities department. um they have a capital project schedule um but they have it and really no other departments actually saw these capital project schedules. And so um there's there's really lack of transparency and lack of understanding and

023lack of communication as to what these capital um projects are and how they are being scheduled and how they are being prioritized. that appeared to be uh just maintained by the facilities department outside of any any systems. And then on the financial reporting side, um we saw that there was some inconsistent training and understanding on the systems and the policies and meaning that we would ask people what is the um what's the travel policy? Uh how do you receive reimbursements for travel? Do you travel? and we were told,"Well, I don't think there is a policy," by one person. And then another person would tell us what they thought the policy was. And then we would go and we would look and there actually was a policy. And so there was very clear lack of training

024on the policies that were in place um and on what procedures should be followed for for various different um financial transactions. We also noted that the journal entry procedure procedures were not always followed. um meaning that you sometimes had the same person creating the journal entry and then posting that journal entry and so that segregation of duties was was not there in certain c in certain situations. um it did not the documentation was there and it was it for the transactions that we reviewed the approvals were there the documentation was there it didn't appear that there was anything nefarious going on but that um that policy um and I'm sorry that procedure of uh segregation of having somebody create the journal entry and add a different person posting the journal entry was not always happening.

025So, as a result of what we saw, we had uh 34 different recommendations and those recommendations fell into five categories. And the first was board oversight. Um our recommendation is that there is increased transparency um and accountability that there is in increased transparency for you all to to see what's happening in the budget process for you all to to um um be informed of uh decisions that are being made, situations that are that are coming up that are um that are related to um to budget and to budget expenditures. um particularly as it relates to any kind of um budget adjustments. When there is a budget adjustment um or a retroactive budget alignment um that needs to be reviewed and approved by the board, you all need to understand what's the purpose for this realignment.

026What's the purpose for this reallocation? Um why are we doing it? It needs to be brought to your attention and then the board needs to approve that. Uh we also recommended that there's an increased or there's broader factors in school allocations. We noted that the schools every school is allocated a certain amount per student but some of the schools have have different needs. Some of the schools have a higher percentage of um special special education uh for example. And those schools probably should be um allocated um a a different amount per student than other than other uh schools do. It should not just be a straight across the board per student um allocation. In the budgeting process, we recommend that department heads and others who um who have insight into the needs can have some

027input into the budget creation itself. Um they know what their needs are. They can submit a budget request. That doesn't mean that if they request a certain amount that that's what's going to get approved, but there should be more insight into or some more input from department heads as to what the budgets should be. We saw that that was the reason for some of these um budget uh retroactive budget adjustments and realignments was because um the CFO when she was preparing the budget didn't necessarily understand what facilities was going to need for that fiscal year. And so when facilities had a big purchase that they had to make that hadn't been considered or budgeted for because the CFO was unaware of what those needs were. And so if the department heads can have more of

028an input into that budgeting process, then the budgets are going to be more reflective of actual needs. Um we request separating the operating and the grant budgets um in the systems. Those have different requirements, different reporting requirements and therefore they should be broken out and reported on separately. They should not be all reported on in the same uh report. And then there should be limits um and documentation for and approval for budget adjustments. Like I said, those any any budget adjustments, any budget realignments after that budget is approved. Um any adjustments or realignments to that budget should come to the board for approval and they should have a reason, right? They need to be limited to uh they need to be justified and they need to have a reason and they need to be approved.

029Um we recommend avoiding vague account classifications. Um a other services account um seems just to be kind of a catch-all account. And so if you do have something that's just other services, there should be a def a definition as to what actually falls in that account and what should be classified to that account. Um we recommend granting readonly munice access to the department heads so that they can have access to look at budget to actuals and then they can make uh decisions um um spending decisions and things based on real time budget to actual data and they can um have more open um communication with uh the CFO and and then that can be uh relayed to you all. And then we recommend centralizing purchasing and approval in Munis. There's a separate system for purchasing

030and approvals. It's called FastTrack. And so FastTrack contains the purchasing and approval documentation. And so you have to look at both of those two systems together to see what's going on. And so we recommend consolidating that all into Munis so that everything is in one centralized um accounting system. Um, we recommend that all student activity funds be tracked in Munis, not in Excel, and that the um facilities and maintenance share their capital project schedules across departments so that those can be prioritized with input from um all of the departments. And then we recommend annual training for all employees on the systems, on the policies, on the procedures um and fraud awareness training. And we recommend that that training be uh that that they sign off that they have participated in that training and that those

031signoffs and that those um um acknowledgements be maintained in their employee handbook or in their employee file. And then we recommend a for that that the inventory procedures um and employee record reviews um is formalized. Um there's a general understanding of what it needs to be. Um but the there is no formal procedure for uh inventory uh and employee records. So with that we will open it up to general questions. I I know we've gotten four a few different questions. Do you want me to start with those that were emailed to us? Yeah, I think I start with those. >> Okay. So, let me pull them up. Okay. So, who informed the audit team that the superintendent was contracted for 10 years? Was this statement based on documentation or communicated verbally? And actually, we got

032that from um public records. We did um um a search. Yes, >> finish your you can finish your thought. I'll follow that one. >> Okay. So, we we did a search on that. Um and and from our search um and our our research, we identified uh that that there was a 10-year um term. >> Yes. Passes. >> Yeah. I'm going to have to correct that directly. Connecticut state statute limits superintendent contracts to three years. Your research involved probably newspaper articles where the superintendent said she intended to stay for 10 years, but it's we are limited by law to three-year contracts for the superintendent. Let's say we had a 10-year contract. You're saying we were in violation of the law and this is a living document that's going to be living on our website and that

033we got to live with and we got to work with. So, I would appreciate to some research and correction of the records. >> Okay, we can do that. The next question was the amphitheater contracts. Why were the two 2499 amphitheater contracts not included in the documents? Were they not made available or were they omitted for another reason? And um no, they were reviewed. Um we like I said did a risk based sample. We didn't look at at everything and we saw that there were three contracts for the amphitheater and we selected one of the three to review and the one of the three that we reviewed um had um a qualified purchase that was signed and approved. Um it followed the policy um and it had the appropriate signatures on there. It had the appropriate

034approvals on there and it um it had all the documentation that was required per the purchase policy. Um and then for the other two we saw the contract as well. We just didn't include it in here because the risk based sample was like I said not 100%. >> Yes. I just uh on the on the other matter that you spoke, I just wanted to clarify myself with that when you quoted that there's ex superintendent had a 10-year contract. You based that on what information again? >> Um that was a that was research that we performed. It was just a a um public search, public record search. >> So you never looked at you never you called it a contract and you never found a contract. Is that what I'm hearing? >> Correct. that was not

035in our scope to look at employee contracts was not part of our scope. >> So it was public. >> Yeah. >> So you were just hearing like like my colleague said, you were just basing it on news or articles that you read. >> Correct. So we can correct that and and take out the word contract. >> Thank you. Thank you. Mr. Freeman. Yeah. Turn the chair back. Yeah. that I would um just I find that a little odd that you refer to that as public record. Um just my own opinion I I I never sort of viewed the news or the press as public record. public record sort of gives me the impression of records kept by public entities not >> really everything everything that is available is public record. Um, and so all sources

036are considered public record. >> Given given the breadth and scope of what's available on the public record by that definition these days, we have some hard times then. Um, that's why I find it hard. I I I I can sort of see it maybe 20 or 30 years ago, but these days. So I I I would have been fooled by that comment um as using that standard. So >> okay, >> not understanding this particular piece of information. Yep. >> I just that's public record. >> So and and we hear you and we will we will make that revision. We will change that. Um, >> yeah. I just I I make this comment because it that one's an easy one for me. Uh, notwithstanding what Joe said about the law, which is there, it's also just

037known that there was no 10-year contract. Um, but, uh, you know, um, uh, it just makes me worry about what else is in the public record that might not be right. >> Well, nothing else is in public record. Everything else that we that we reviewed, as I said, we looked at data, we looked at documents, we looked at what was in Munice, we looked at contracts, we looked at um that was just in our background paragraph there. That was not in our work performed paragraph. >> And I I have questions later, but I >> Thank you. >> You can go to the next question. >> Okay. How is the board expected to ensure compliance with MBR given we are not the direct funer? is pursuing legal action recommended enforcement option. That is a question for

038your council. Um that's a legal question and we are not lawyers. We are accountants and so that would be a question that you would need to pose to your uh legal counsel. >> You could continue. >> Okay. From a governance and audit perspective, is it considered best practice to restrict the CFO from speaking directly to the board? And actually quite the opposite. It is be best practice to have the CFO present to the board on regular intervals. Um the recommendation and the best practice is to have the CFO provide uh whatever information you feel is the detail necessary for you to understand the um um contracts, budgets, budget breakdowns, um to to discuss budgets to actuals um and to present you with, you know, visuals, things of that nature, and be available to to ask

039questions of. But it is definitely not best practice to restrict them from speaking to the board. It's it's actually best practice to have them at board meetings. Um is it good practice for board members to question and request documentation prior to meetings? Yes, it is. Um it is best practice to uh request those, you know, probably about 48 hours in advance of your meetings, prior to your meetings. And that gives you an opportunity to review the information that the CFO plans to present. And then you can ask um for additional information and have them bring that and be present or be prepared to discuss that in your board meetings. And so you can request um you know information on specific um contracts on specific you know expenditures, budget budget categories, things of that nature. Um

040you know areas that might be of a specific interest or concern to you. Um but yes, it is it is best practice to receive that documentation in advance of the meeting so that you can be prepared. You can ask your questions in advance and so that the person the the CFO coming in can also be prepared then to address those questions and and concerns that you may have. >> Um yep. Do you have were there was there another question on there or was the last >> there's a few more >> um is it good practice for board members to oh sorry that was that one um is it ever appropriate to discuss financial data in executive sessions solely for the purpose of preventing public concern and the answer to that is um that certain information

041obviously has privacy implications and privacy um as it relates to personnel matters to um you know any FOYA information, things of that nature. Obviously, it's okay to discuss those things in an executive session, but that should be disclosed prior as to why um the purpose of making of having those discussions um in an executive setting and in a closed manner solely for the purpose of preventing public concern. that is dependent on whether those issues would violate FOYA or other privacy matters or concerns. Any additional questions you have about that, we would recommend that you uh reach out to your um attorney or your legal counsel. And then the last one, conflicts of interest. Um I think um Dr. Hughes sent responses to those questions. >> Yes. We do have a few board members here with

042some questions on >> Yeah, I have two questions. Um, so you mentioned in your presentation that you took 60 high-risk transactions and I wanted to know um in terms of a percentage um in in comparison to the overall record, what does that look like? Um, it was $14 million total that we reviewed in those 60 transactions. >> And from a percentage perspective, what does that look like? Is it like 1% 2%. >> Um, I don't know the exact percentage. Leah, do you? >> No, I don't know the exact percentage. We went I think by dollar amount, not by number of transactions. Mhm. >> So it' be it would be a question of p what to percent of what total you're looking at. >> Yeah, we don't we don't have an exact percentage. >> Um and

043so a followup to that question. So let's say you found something that was an anomaly. It looked like potential fraud. Would you have increased the percentage or the dollar amount that you looked at? >> Yes, we would have. >> Did you have to do that in this case? >> We did not. >> So my last question is more so a procedural type question. So within the report there was references to special source and I'm very familiar with soul soul soul source procurement not so much special source procurement. Is that common practice? Have you seen that in in your field? >> Um I I would have to go back and can you can you >> I can speak to that a little bit Emily. >> Okay. Special source is fairly common uh with any procurement area.

044It usually a lot of times refers to like an emergency situation like a tree falls on a building and you need someone to come come clean it up. So it's it is very common practice special source. It's a pretty common term. >> Thank you. That's all my questions. >> Okay. So let me start with where you just left off. Um, so we don't know when you did this um selective random selection. I I'm not she's more versed than I am on this process. When you did this random selection, um it's sort of like, okay, we're going to we're going to look at different transactions and see if we find anything. And if we find something that looks fishy, we'll look more if I understand the process in lay persons. >> Yes. And it was it

045was not it was not >> but we don't we don't know the percentage that you looked at. >> Right. So it's not >> it's not a um random selection as we said it was a riskbased sample or a riskbased selection. And so based on we we looked at categories where um there were either huge budget adjustments, right? Where where we saw large transfers um or where we saw that um um budget to actual had had large variations or large variances. And those were what we focused on were those areas where there appeared to be um um large adjustments or or um large variations in expenditures year-over-year. And then from those areas, we selected um higher dollar transactions to look at. And then we also looked at every um we looked at every transaction right Leah

046that were that was right below the approval threshold and then selected from there which ones we wanted to to look at based on the contract information that we saw. >> Correct. Because that was brought up as a concern. So, we looked at right below the threshold. I'm sorry. Let me I'm just And we looked at ones that there was a a significant variance. >> Yes. or or large um transfers. So, accounts that had large transfers. Okay. Now, I I use that word random because I could have sworn last night. Now I I I do admit that my eyes were like drooping um that I saw random in the report but um you still when I heard Maritz's question I understood so how big a sample was this of the overall money slashbudget slash process in

047those two in that two-year period that we that we looked at >> and we don't know Right. We looked at just over 14 million, but as far as a percentage, >> how big was, >> right? >> That was what Marissa's question was, right? How big is that sample? We don't know that. >> Correct. And and I I I must say this is all new to me. So I'm not trying to uh but as a as a as a as a peon or a commoner in this area um I sort of think okay we're going to finally you by the way I I was struck and somewhat hurt. Uh the the background failed to mention that we had an RFP out for a forensic audit before the board state department of ed board ever asked to

048have you do this. Were you aware of that? >> Nope. >> Okay. We did. And I don't don't know how our RFP compared to what you were asked to do by the state. And I was curious if you were aware of that and compared the two. We were not >> because we weren't asked then to sit down with you with the state to talk about what we wanted to look at in our act our our desire to have a forensic audit done. And so now we're getting your report of what the state wanted you to look at. And it it's sort of like now we're being told what the state asked you to look at and we're thinking wow okay well this is very interesting. And it is interesting. It was fascinating to look at,

049but it's like, boy, there's some other things we would have liked to seen looked at. Um, and so now, what else did we miss here? Um, and, uh, part of that has to do with some of the questions you're getting from us. Um, when you say there were mclassifications of certain expenditures in your report, who mclassified them? um they were mis mclassified in the accounting system. So um the the uh accounting instruction and the the documentation that was provided for recording into the munis system had them mclassified for entry into the system. >> So who did that? >> Whoever approved them, >> right? So are we not trying to figure out how that happens? So that was not the that was not within the scope of what we were doing. We were asked to look

050at what was the cause of the um difference between budget to actual. Um that's when we do policy work to make sure that we have on that more comes back to us. >> Okay. And then um in the results of the forensic audit on page six, we also talk about the identification of the lack of board oversight. Why was there a lack of board oversight in your opinion? Um, I from listening to the board meeting minutes, um, I think there was there was not enough curiosity. Um, and and you all weren't presented with the information that you needed, but it also was not necessarily requested in the level of detail that you would need to be able to understand exactly what was going on. >> Did you notice board members were not allowed to ask

051questions when we're trying to ask questions? >> Um, I'm not in those board minutes. are those board meetings and so I can only glean what I can glean from reading minutes >> and the minutes didn't reflect the board members were told not they were out of order and allowed allowed to ask questions >> out of order could be in a number of things meaning the tone I I can't gain I can't gather tone >> reading >> okay you said all right >> I know she finish her thought. >> Okay, that before she started talking, you inter >> I apologize. But did I didn't catch because I was listening to the chair. >> Yeah. So again, I I cannot from reading minutes determine tone, determine the circumstances and the situations that were going on in that

052boardroom. Um I can only read read the questions and read uh the minutes of what happened in those meetings. Thank you. >> Okay. I'm I'm just asking. So you you not did not see that board members were not allowed to ask questions. >> At finance committee meetings? >> No, we don't get transcripts. We get board meeting minutes. >> So we have minutes of notes. So we don't get an actual transcript of what happened. I don't know that there are transcripts of of meeting minutes and if there were they weren't provided to us. So we just get like the summary meeting minute notes. Our minutes are now minutes are summarizing >> the minutes. So that's why going to go line by line everything else said. >> I know how good John's minutes are. >> Um >>

053that's my >> next question. Arcade sent of your report in the background. Um I I continue I am I uh I I want to clarify Mr. Mos here um and the superintendent here. So between the two of them we should be able to clarify. I I thought Miss Seagull remained on the payroll as a consultant for many months after her apparent departure. And this would suggest that there was not that overlap. So I wanted to be clear in the record here as to what it says. The district has undergone numerous leadership changes during the most recent years from January 12th through March 24. The district employed Marlene Seagull as the chief financial officer. At the time of Miss Seagull's departure, Miss uh Patricia St. Lewis uh stepped as interim and then Mr. Nau the former

054city budget director was hired in September 2024. Um and I believe that Miss Seagull stayed on in some consulting capacity during that time and it's not reflected here. >> That's because that is that is reflecting who held the position. She was a consultant not the super or not the CFO. Okay. And you don't think that it's Germaine in the background here to show that she still had a role in this? >> Not if she was not the CFO and in that um employed position making decisions. >> Okay. And then let me just ask you then. I I felt like this report was u fixated on two things which I saw that in the beginning and again I'm not I saw in the beginning and so I want really want to be clear about this. One

055of the problems I'm having here is that this process you s as you said you sat down with the state department of ed to discuss what they wanted you to do and I get that and there seems to be two fixations in this report when I read it the board of ed and the CFO and it seemed to completely ignore for any other individuals that may have an influence on what happened here. Um, and so I I don't I I guess I'm having trouble with knowing how things occurred during this time. Uh, the role of the superintendent and the role of the chair of the board of ed and what happened during this time frame. Um, so that's I guess what I'm having trouble with here is those two factors not being spelled out. And

056I I heard I heard what you're saying and so I'm not trying to give you, but as I read through this, I see that um you explained to me how you selected your samples. Um, >> can I add to that? >> Yes. >> Um, is there any indication that the superintendent was >> that person aware of I don't know includes you or her of of the CFO's transactions and and moving around the money. >> Um, like we said, this it was all very siloed. Um, and the CFO really kind of controlled the budget. I didn't hear what you said. Where is this something? This is something. Oh, you're good. You're good. Thank you. >> Well, I I I know in the one initial conversation, the CFO stepped forward to defend the action of the superintendent

057after the fact. So, that's why I'm concerned. So, I don't Um, >> not you. Sorry. >> To be clear, to be clear, thank you for making that point, Miss Neo. In the fall of 23, the CFO at the time. >> Okay. Thank you. Is that clear? Thank you. >> Yes. Um on page uh 10 you did a uh I'll come back to that. Sorry skipping. Hold on. Sure. I'll see and come back question. >> I'm working on we know we're here. >> Yeah. Um, >> first off, I would like to say thank you for performing this audit. I do not disagree with any of the recommendations. No, >> I I do have some disagreement with some of the things that were presented, but I don't think overall it affects the suggestions that the board has

058more oversight. I've been the reason I'm trying to get all these clarifications, all this thing. I'm the longest serving member of the board. I've been attempting to get this audit since I sat in this seat first. Unfortunately, it took a crisis of makeup proportions to get to this point. And the reason it's important for us to correct the record right now is we have a lot of eyes on us right now judging us and looking at us going forward. So, I want to make sure we got a good path going forward. That being said, I'm going to go I got a couple of questions. Um, I just wanted to clarify or to do we have the date on that split purchase email or what date that came what date that came? >> That is one

059of your exhibits. Um, and so the date is on the exhibit in the email. So, let me see what exhibit that is. >> Yeah, please. I got my little phone with me. You have the exhibit number? >> I'm Yeah, I'm looking for that right now. Um, it is exhibit five. >> So, the email is included in exhibit 5 >> and it was dated February 18th, 2022. Thank you. So, thank you. That that answers a question on my head. Um interesting. Um I would just like to point out that um just just for the record that um per student allocation for the school is just for discretionary spending. We do allocate more resources to higher need more higher need schools than lower need schools. Special edition is higher in some schools. They do get more resources

060than the other schools. The money you're referring to, I believe, is the $25 per student. >> $45 per student. >> 45$45 >> 45 >> 25 per student. And that's a discretionary fund for the building principles to use as they see fit. So, it's not every student getting the same amount. So, we do distribute our resources on an equitable manner according to the needs of the building. That's important to be clear about. >> Yep. Um, another question about the grants and the operating budget. There are times where grants and operating budget must overlap because we've got two positions where the operating budget will fund psychologists and social workers and then we need more social workers and psychologist than the operating budget could absorb. So, the grant budgets have to absorb some of those costs. So it's

061not it's not necessarily uh an overlap. It's just a dual source of paying for those services because we are starved as a district for funding. The chronic underfunding of the state, city, and federal government of our district has caused us to have to be creative. In a perfect world, we can have those little boxes, but the state of Connecticut has not created an equitable perfect world for us to exist in without sacrificing the services. If we did, if we do as you ask and only put psychologists in the operating cost say, "Oh, we out of money. Sorry kids, you can't have your services." And as those grant flows, those grants, if they're not spent, they revert to the state. So, our kids lose out on those services. So there has to be some sort of

062back and forth on those budgets within reason. >> It just needs to then be clearly documented, more clearly documented. Um and the uh approval needs to be retained, >> right? And and just for clarification purposes and reinforcement, that approval must come from the board. >> Line item transfers and such. >> Yes, line item transfers and any adjustments to a budget amount needs to come from the board. >> Thank you. And uh Okay, what else? Um, yes. >> Yeah, I think that's all I got for now. Thank you. >> Yep. >> Cas, do you have anything? >> I did, but I was at the age. You didn't go with somebody. >> Mr. Woodson question. Did you say in the beginning that you didn't do any any investigation on SER Series? um as only is it related

063to um expenditures exceeding budgeted amounts? >> Feeling like a there was no there was there was there was no type of anything about any like u inquiries regarding ESER money that that we received. you know, we have like 140 something million. >> If it if if those funds were included in the operating budget and the expenditures exceeded the budgeted amounts, then yes, we looked at those and considered those. I I would have thought that especially with with all the money that everybody got and and all the money that we received that that would have been one of the first things one of the main things that you that you checked you know we we had 144 went from 144 to nothing and a lot of in a lot of the towns you know I I

064you know everybody had different needs and and and and wants to do with the money but I would have thought that there would have been some type of way some some type of investigation of how Bridgeport spent the money. Do you do you think that Bridgeport spent their ES did did you do you know what Bridgeport spent their ESR money on? >> It was included. >> Yeah, it was included as part of the budget amount. So, we know what the categories were for the total operating budget of $20 and something million annually. Um and so we know how those how those funds were budgeted, how they were broken down. Uh as far as whether that was an appropriate budgeted amount, um that was we we were looking at did expenditures align with budgets, not were

065the budgeted amounts appropriate. Uh that that was outside of the scope of what we were asked to do. We were looking at whether expenditures aligned with budgets and whether they were used for approved for the approved budgeted purpose. >> Thank you. Um, on page 14, number three, it talks about a $175,610 payment to Shoreline Boiler for two boiler replacements at Maplewood School. I don't know of a Maplewood school. >> Classical studies. >> Oh, it's classical. Okay. All right. She answered it. Thank you. >> Okay. That's I'm assuming it is. That's >> That's what the building Yeah. M guys, are you there? >> Yeah. >> Good evening. Thank you for coming once again. Um I know my colleagues kind of like spent treat them like a peon. You can treat me like a little mustard seed

066if you would. because I do have faith in this process. But thank you for and I have multiple questions that might be overlapping with theirs. But um if you could just give me that quick answer that'd be great. And I'll touch up because Mr. Woodson mentioned that word and you a question that you mentioned a word. It was outside of our scope. And my question is who established the audit guidelines and what were they and were they classified? And I want to first say I apologize for my loudness because I am Puerto Rican but also and I don't apologize for being that but I'm loud but I want um I didn't I wasn't able to dive deep because of personal things and my job uh restrictions um as I wanted to in these documents over

06780 something pages. So who established the audit guidelines or what you use as a word scope >> the our communic our initial meeting with the state um and it was outlined in the uh scope of work that was agreed to by them >> and is that in our documents? I just want to make sure that I'm able to go reflect back to them. >> I you would have to ask uh Mr. or Dr. Hughes. Um, if you could see the the scope of work document, uh, the contract. >> Okay. So, we got to ask him for that scope of work. Madam Chief, you want to do that for us? Thank you. Um, thank you very much for that. >> Um, interviews you mentioned about interviews that you took. Who said those uh, I think you

068said 10 interviews if I my notes served me correct. who uh chose those people to interview. >> So we selected those individuals. We got an or chart um and we from that or chart saw who were who were the um um I guess decision makers in each of the various different departments and then who was in the day-to-day work and and you know making some of those decisions. And so based on that, we identified who we wanted to select uh to interview. And then um uh we we reviewed the board meeting minutes and just kind of um you know who participated in the board meeting minutes, who was in those board meeting minutes, and then we just randomly picked a couple of people to talk to. >> Okay. In line with that same question, I

069think it would probably be appropriate at this moment. Um I'm just making my little check marks here that I know I talked to you about that. Um cuz I heard you multiple times speak about policy and uh policy procedure and all that stuff and why why didn't you speak to the policy chair or when you had questions about policies being right or wrong or being such because I know that you mentioned that you were asking if there was a policy somebody gave you an answer of no but there actually was. So why didn't you seem at that point when you're having questions about policies and procedures, why wouldn't you talk to the policy uh chair? >> Um we we were provided with the approved and printed policies and procedures of the district. Um some of

070those were actually uh state level policies. Some of the procurement stuff is actually state level policy. It's not district level policy. Um, and the purpose of the interviews was to understand whether people even knew what the policies were that they were supposed to be following. Um, and in this case, what we found was people didn't even know what the policy was, which indicated that there was a lack of training. It was not an issue with the policy itself. It was an issue with people understanding and and adhering to that policy because they were unaware of what the policies were. I had that question because when I if I go back to our meeting later, uh your statement was that you asked somebody if there was a policy, but now you're saying that you did have

071it. You had all our policies with you. >> Sorry. We had the policies. We Yeah, we were asking individuals if they knew what the policy was >> and they told us they didn't know what it was. And so our our recommendation is that people need to be trained and and acknowledge that they have seen and reviewed and understand the policies. >> Gotcha. And I've been looking forward to making that policy um India that way it's in their contract or however we'll decide to do that because by the way I am the active policy board chair. So that's why I had a question because again how how did you I I noticed in this report and minimum that I was able to dive deep that you spoke to board members and and in one of your

072reports or your slides it was in there that you spoke to board members but you didn't reflect on that you actually passed by and went to the next page. So you know this board is selected nine member board. >> Mhm. >> Um and there are seven minorities in this board but you didn't speak I don't see nothing record that you spoke to any of them but you spoke to as my colleagues that I spoke to prior to this meeting you spoke to the two white males that are in this board. And again I use that word because they use that word with me. Um, and I'm just wondering why the rest of the board was not included in these discussions or interviews as board members, >> but only those two individuals. >> Yeah, we just

073randomly selected it based on, you know, reading of of minutes and people's names that were in the minutes um that seemed to have the most, you know, questions and comments and things during the meetings. >> Interesting. Thank you. Um, >> you mentioned that the only money that was being reviewed was a $14 million kind of like bucket. And if I'm right, you said it was this is two years. >> Yes. >> So, you're talking about almost excess of $600 million in his two-year budget, but it was only a $14 million bucket that was being looked at. And my colleague mentioned like what is that percentage of what were you where were you looking and who's the one that pointed those specific my question who pointed out those specific 14 million compared to the 600 plus

074million probably in his two-year budget. >> We identified those based on the data analytics and looking at where there were the highest variances where were there were where there were the highest transfers the highest adjustments and where there was the highest risk. You mentioned in the beginning that this was not a financial audit. I think that was the main highlight in your statement in the beginning that this was not a financial audit. But all over your presentation and the thing keeps on using the word financial financial financial. So who uh in thish let me pass that you mentioned that they were you were provided board minutes who provided these board minutes to you. >> Um we requested them. >> She said she was provided somebody gave it to her. I think that word is means

075that >> go ahead. I'm sorry she was interjecting. They they were provided to us in our initial document request. I can't remember who who actually provided them to us, but we submitted our request to the state and then they forwarded that on to the respective individuals to to get the documentation. >> Do you have the date of what minutes were presented to you >> or what range if it was a range? >> Um, geez, I would have to go back and look. Leah, it was for I mean, we got whatever board meeting minutes they sent to us from 23 and 24. I'm sorry. 24. >> I can look at what the request was. And >> you said the word request just now, if you don't mind, who made that request? >> We requested we requested

076documentation from the state. The state then forwarded that on to the respective individuals to provide us that documentation on our request list. And all of our initial requests for these types of engagements include policies and procedures um um or charts, org meeting minutes if they exist, and financial uh statement data so we can do the analytics. >> The request was for FY24 and FY25 >> which is in line with the scope. >> Mr. Vidia, that request came to my office. My staff collected the the data. We had to secure the portal that state provided us to upload all those documents into that portal for the audit team. >> No, great. I appreciate it. Thank you. So that was also included uh not only board uh regular meetings also uh uh excuse me committee meetings. >>

077I don't know exactly the request that was made. Okay. Yes. So everything that every request that was made we provided those line items. I checked everything off from my office as making sure they had every request made given to them um by the team >> and the request was for full board meetings and the meetings of any committees as well. >> Yes, thank you. You mentioned that there was $16 million that panic was flagged that went from a retire from the retirement fund to the active payroll account. Did you identify what year was that? >> Um it was in 2025 16. It's on page um 11 of your report. >> Thank you very much. You also mentioned twice in two different occasions and I just want clarity even if superintendent of the board went student

078activity funds. What is that kind of like meaning or what does that reflect? I'm just thinking about fundraiser. That's the only thing that comes to mind. I'm a parent of three students and graduated Bridgeport public schools and they all did also including my wife. So I'm just thinking about pack and all that stuff and what is that? That's pretty much what it is. Student activity. >> Go ahead. Go ahead. >> That's pretty much what it is. Student activity funds raised by parents or student activities in the school. >> I'm talking sports like sports ticket sales and stuff as well. >> Not specifically sport tickets. >> Not sport. Okay. It depends on who is organizing it. Let me put it that way. For the school. >> Okay. want I didn't want to dive too deep I

079just want to find out because I know this money is funds being raised by >> the campus okay >> I know you mentioned that you would like it to be going through munis and not through you know classified under excel you know what would be the difference I mean I just wanted to find out like why was that a highlighted uh item out of you know a $600 billion budget and only 14 millions being looked at but all of a sudden it's student activity funds which I don't is hey high dollar amount uh would so why was this highlighted >> um to show that there are things that are being tracked outside of the formal accounting process and that uh limits transparency and accountability um if it's recorded in a financial accounting system then it

080enhances the transparency and the accountability of the use of those funds >> I appreciate that because I knew that was going to be the answer somewhat because I want to ask you this question are you aware when mutis begin to be active within the Bridgeport Board of Education. >> So, we did ask that. I would have to go back and look at my notes exactly what the date was. Um, but I do know that you just transitioned to that a few years ago. >> Not a few, I don't believe, but let me ask this. >> It may have been a couple years ago. >> I was the project manager for Munis the A section when it was implemented in 2009. Board of Education was part of the implementation. It's been with the board since 2009

081>> and it was never been because I remember board meetings that we had that was talked about that we are not using mun but we should be using mun I'm confused in that that's why I brought it up because I wanted to make sure they understood but I guess that's not the case. Go ahead. So madam chair I have to be honest with everyone has the same unit access that the city has. They chose not to maximize the use. That's the answer. >> Thank you. You bring yourself up because I want to make sure we understand it because again, we want to know that way we can act and unless we know something, we can't act and we can't help each other and we can't help our district. So that's why those little questions matter

082to me because that was not what was expressed to me or what I understood. But now I understand it a little bit better. I think he would like to interject some more. >> True. Madam chair, if I may clarify, in accounting, you should not have a quasi account. When I mean a quazi account, account that does not the district has no control over kind of with a backup signature authority and tracking record. Having these mini accounts, student activity funds in a private bank in a bank whereby the coach or whoever has the discretionary approving authority is absolutely a no no in account. Okay, >> I agree. So what I did the first time it she mentioned it in the report here two of those accounts have been put into minutes the two large ones good

083amount of chunk of money that's the first thing I did but I haven't gotten around to that actually too many things to clean up >> well we we'll get to it I believe I believe that we will um you mentioned something specific that I actually since Mr. Uh, new boy is here and he we were talking about this fast track. You mentioned something about fast track. >> Formstack, >> huh? >> Formstack. >> Can you share a little bit more about that because I know somebody was confused about it and I want to make sure I I can well >> again I could give you the history of Homestead a little from what I was told when I came over here. There's no reason for board of education to be using soft form stack. It's an

084intermediary accounting mechanism or requisition processing. They kind of doing work twice. First of all, he enter the story get approved and it processes. They're using a medium form stack manually entering it there. Then the business office will manually enter the same excuse me nonsense information immunity. >> Yeah. Said I hear you. >> Totally redundant. >> Yep. >> So come October we're going to do a districtwide training for clericals for all is everybody's moving back to Muna position in Mun. It routes through the workflow what they call workflow. principal is going to approve it. He's going to route to me. Then I'm going to look at the mis what they categorize as mclassification which is other services is a cash all account is a lazy way of reporting accounting transaction area. Somebody doesn't want to look

085at the object code or the commodity code. They just choose other services. Just get it paid. I don't care where it belongs. It's a lousy way of reporting. You cannot run cannot run a historical trend of how much you spent in construction. With one object code, I can on the city side with one object code, I can tell you how much we spent on paper because all of his supplies are coded to appropriately coded to paper here. cash it all. You can't really tell how much is spent in construction, remodeling, air conditioning system because it's buried under other services. >> No, I have a question. So, is that a timeline that has already been established October of this year? Everything's going to move over to Munich. >> We have to do the training to all

086the clericals in the schools, coach them. Yeah, >> let me clarify. You know, as a school superintendent, we're we're going to take the 34 recommendation, guys. We're we're going to follow and correct every single recommendation. We have a system in place that we're going to review to make sure that every single thing that we do moving forward is going to rectify these these these 34, you know, issues that we're having in the district. a systemwide system. We do a lot of things manually in the district, guys. Okay, we're g we're going to move towards a systematic way of check and balances across the district and and because we're using Munis and we're not using all the components of MUNS, what we're doing is taking a look at everything that Munus offers public, you know, K12

087education, right? And right now the city side uses MU for the city municipal piece of it. They have a they have a K12 component. We're going to look at those components. We're going to integrate them into our current practice and be able to kind of, you know, put those things in place with training and oversight and transparency. Everything we're doing moving forward is going to address this. Y >> uh and I feel very confident that once that's done, >> you know, in a few months, we're going to be on the right track of moving and and correcting everything that's been brought up this evening. Uh it's it's important that you guys know that we were we were already thinking about this two years ago when I came into this district. We just hadn't got to

088it. Uh this has given us the urgency to get it done. Uh and I can assure this board that it's going to get done and it's going to get done in a way that's going to be manageable. Uh we can't just throw everything at everybody because we have system issues, right? and we have to fix those systems in order to make sure the system is going to be fluid. So bear with us. This is a great opportunity for this district to really do what's important for the district to move forward. So I'm excited about that. I think my staff, we've already had preliminary conversations about the 34 recommendations. Uh it's going to be uh I think we're going to be in a good opportunity to learn from our past mistakes and understand that we p

089pave the way for a part of the uh traveling forward uh as we look at how we're going to regulate this district and the financial side of the house. Thank >> yeah how much if we have not been you utilizing units for its full capability and now we will be is that going to cost us anything or are we going to piggy back off of the city? >> We're going to piggyback off the city. There's going to be there's going to be some some PDP things that we're going to have to bring in to help out. But that's also what I'm going to be asking from the state of Connecticut to support us in that in that in that in that way to be able to make sure we get this done right. Okay. So

090that's that's something that you know I haven't had this time to discuss with the board yet, but that's part of our conversation moving forward uh in the different committees. We all bring those things up and how we're going to do it. I got I got to get Revenous to kind of get a a time frame as to when we're going to get things done uh that's manageable for all the other things that we're doing across the district as well. So yes, ma'am. >> Thank you. >> So um since I still have the floor, I have one small question, but I also want to say that I know our superintendent, uh Dr. Avery is falling ashore. He wasn't making these mistakes and he's correcting. he inherited and I appreciate that he is saying this is my

091baby now and I'm taking the and I'm going to fix this so it wasn't his mistakes and I want to make sure I put that out there in public because I don't blame Dr. Avery, but he's taken accountability for others and and for others actions within the district as far as even the boards. So, I appreciate you, but you're you know, can't have you fall in short by yourself. I have this is why some of my questions are so like I have a statement that I would like to share with you and this is why I was almost pulling my hair and as you can see I b I shave my head. When you said only the $14 million were looked at, guys, I I was concerned because I have a document that came from

092the state that says there was over $34,678,46 from 2024 25 that was coming into education and our budget that year was at 309 and I was questioning that where did all that money go if we were receiving 304,678,400 through grants and funding and all these ECS form and all these things which it came that information and data came from the state and I can share it with you if you want. And then we had a $39 million budget that we set that year for the 2425 school year. Where did all that $34 million go to? Where did it go? Did it come to our city or to our education fund or not? And no one was able to uh answer that question even for the state people that was was before me. You know, they

093just told me find out because the money gets us through the city to come to us and we got to find out where that money went to it. If did it did it all come into the board of education. So when you said that 14 million was only the picture, I was like, "Wow." But I understand the facts are that you were not doing a true financial audit. So, I guess that's why we wasn't looking at every single dollar and cents. Um, thank you ladies. I'm sorry I took a lot of your time, but this was uh for me time well spent. God bless you and thank you again. >> Thank you. >> There's one more board member who has to ask questions and then >> No, I don't question everything for >> Is there

094any final questions for the presenters that Dr. can't answer? >> We'll go Mr. Miss Gasmir >> um remember I said I'm going to come back this um so I I just to be clear do you know why this model was chosen? >> Do I know why what >> you said when you sat the beginning you sat down with the state and they all discussed the model they wanted you to do. Why was this model chosen? >> That would probably be answered by the state. But no, they had discussions with the state. I just wonder >> we had discussions with the state as to what their objective was and how we would fulfill that objective. >> So there was no discussion because again I I'm just I understand the type of audit that you did and

095what it was purpose was. I just wonder if there was any discussion about why this particular model was used. Um on page 11 um you uh in this discussion of this uh $16 million it says in the middle of the paragraph although the specific details of these transfers were not examined in depth. Is that because of the mom? >> Yes. We had a limited budget, a limited time frame and we did a riskbased assessment. We didn't look at every dollar >> which didn't involve going into depth on this item. >> It went it involved going into depth on the high-risk ones that involved expenditures that um have that were potentially not for district use. Clearly, if it's being moved to to payroll, it's being used for district use. >> I got you. Okay. I need

096to check on that question. Mr. Traffic from the chair. Uh what was you mentioned the budget? >> You didn't ask the question. >> Yeah, you asked my did ask your asked through the chair. I did as I say go. Go ahead. >> No problem. >> You're the one that called me out. So I'm asking you, but go ahead. You can speak now. >> Thank you for your permission. >> Um you mentioned that there was a budget for this audit. What was that budget? >> 150,000. >> Thank you. And that was set by the state, correct? >> Yes. >> Thank you, Mr. Chair. Thank you, Mr. Chamber. Um, and I think that the the last thing I would just say is that I do, as was been said by others, appreciate the work that you've done

097and the usefulness in your recommendations. It's not where we were trying to get to, but that's not through any fault of your own. That's through what you were asked to do, and it's going to be very useful to our planning in the future as to how our the board gets involved in the budgeting and the planning of of what we spend in Doom. So, thank you. >> Thank you. >> Uh I just want to ask about other services and that is very broad and vague. Um, what would be I mean I know when you have other services you should try as best you can to add that money whatever is going on with it to a line item. >> But but are like should there not be any other services category at all you're saying?

098Or if you do have one it should be limited to just a couple of things. That's what I'm trying to understand. >> Yes. if you have one, it should be limited and it should be defined or explained as to what those services are expected to be, particularly when you're budgeting for those services. Um, you just don't want to have some like catch-all category that you can use to put money there when you don't have it somewhere else. >> So, it should be defined and it should be defined and determined what those other services are and how that account should be used. This is a silly example like red clown noses for each and every single student in the district should go under student activities for instance >> as long as those are related to a

099student activity. Yeah. Yeah. It should be aligned as as closely as it can to an expenditure category and not just some miscellaneous other services category. >> Excellent. Thank you. Paul, >> I just I just need to clarify the the 15 million or $60 million transfer from the internal service fund from the retirees account is actually from the internal service fund which is a different fund. That is the amount of the same internal service fund that the board approved to use the approved accumulated software to balance the operating budget. That's what that transfer is all about. However, yes, the money was sitting in a different place. >> No, no, I'm not talking about that. I'm just saying like how else can you do it if >> Okay, it's a more ideal practical way to do it

100to avoid all these blocks variances. You have projected all your expenses, your line item expenses accurately. Then bring in the $16 million as a credit, one life credit under contingency. Under contingency. That way you're not distorting the historical trend of what the true expenses should be or should have been. But when you start bringing in revenue from other fund net against the expense then come next year that money is not there to suppress those expenses. That's how you see the $10 million wing in one line. You start >> it sounds like >> complex. Yeah, that's the way it should we should have intended >> completely directly. >> Yeah. I have a quick question for you, Mr. Nwell. Why is that account classified as retirees and uh >> because it's because the savings or the supplement

101was accumulated under the retirees account in fund 62 internal service fund. So at the is okay let me pray it this way they're taking it from the retire budgeted retirees account for current year at the end of the at the end of the year all is going to do they're going to transfer money from the surplus fund to make that account whole when they enter >> final question for Mr. follow. >> Yeah. Um, as far as far as the scope of the audit, um, when you've done forensic audits on other school districts, did you do deeper dives than you did on ours or this just like a basically a surface glance? >> It's based on the needs of the the individual areas. We've done both. But would you think it would be feasible for us

102to have a more extensive audit than was provided if money was no >> object? >> So are you are you asking how much it would cost to do a full audit? A >> full So we didn't have a full forensic. >> I'll take that answer. No, what I'm saying a forensic audit is very particular and does a deep dive seeking fraud. It seems like we've got >> it would be >> an enhanced some sort of >> if you're looking at >> if you're asking what it would take to do 100% looking at every penny. >> No, >> that would not be that would not only not be feasible but it would not be reasonable expenditure um to do. Let's say what would it cost to do like say a physicist instead of a 2% sample

103size a 10% sample size and look at more things and provide feedback to improve our internal controls and such and find these weaknesses that exist within our system. Well, they did say if there was an opportunity that if they found something glaring that they would have increased naturally the percentage of their sample size and they didn't find anything that would substantiate that. So increased it to 10% you would have probably found the same exact stuff. >> So that's that's working within constraints of the budget. Is it is this a usual sample size to use across all districts or is it a particular particularly related to the scope and the funding of the >> it's it's related to both the scope and the risk areas and we looked at the highest risk areas and did a

104sample percentage there and as has been explained if we had found something in that sample we would have expanded it within those risk areas but we did focus on the high-risisk areas and the high-risisk transactions within those areas. >> Thank you. at at this point why I was so close. So any further questions we'll we can ask the state board for further >> thank you very much for your recommendations. We're looking forward to kind of diving into them and providing the board with some direction as to how we're going to address them. So thank you again for your your recommendations. >> Thank you. >> Would you provide us with this PowerPoint for our our records to or >> Yes. Who should I send that to? >> Um Danielle. Um, she sent you the link for

105tonight, I believe. Okay. No, I I'll I'll follow my email or me. Either one. You have my email. >> Okay. Yeah, I'll send it to you, Dr. Avery. >> Yes, ma'am. Thank you. >> Okay. Thank you. >> Thank you. >> Good night. All right. Moving on. I do ask that somebody make a motion before. Phil, if you can >> I make a motion to move number four, discussion of approval of enhancing board operational efficiency through technology to number three. >> Sorry, maybe I should have told you. Do you have the video? Um, all in favor? >> Um, I'm going to start with the first we're just going to go over board, which is a system that we're going to be using um that we've had in the district for a few years. I've been using

106um and we're gonna with your approval that I hope we start using it. We'll start with the video and then answer question. Managing board meetings can be complicated and timeconuming. You have to gather information, compile packets, update board members, conduct the meeting, and maybe even notify the public. On top of that, this is stressful, especially when timelines are tight and you receive lastminute changes. That's why we created Board Book Premiere. It is an all-in-one web-based meeting preparation program that helps you organize materials, communicate with attendees, run meetings smoothly, and document it all. Meeting managers love Boardbook because it helps them maintain consistency from meeting to meeting with automatic formatting. Save time compiling recurring meetings with templates. Keep control of user access and delegating tasks. Stay organized by recording attendance, votes, and minutes. Attendees love how

107easy it is to participate in a meeting, even if they're not familiar with the program. For the past 20 years, we've been trusted by school districts, colleges, and other local governments across the country. If you're ready to find out how Boardbook Premiere can help, sign up for a commitment-free demo today at boardbook.org. four. >> All right. So, um this has been um something that the district has had in we already had some addition. We haven't been using it um with two months ago when we renewed our cave contract. This was part of the renewal um uh to use board book. It's basically like the video said, a way that we can um make our our records u more transparent, easily accessible for the public ourselves. Um it's it's a system that um Cave is recommending

108for our efficiency. Um other system other districts in Connecticut are using it as well. Um and um yeah, so that's just you have in front of you the what they do. answer any questions at this point over it, right? >> Yeah. >> But it's it's kind of just a more efficient way of us getting our documentation or our paperwork in and and seeing being able to look at all the data we're looking at. >> Yeah. and through the chair. I think for one of the things I keep hearing is that board board members would like to have the documentation, you know, easily accessible to them, you know, be when the when the meeting is actually released to the public. Uh, and so this is a process that we should be able to streamline getting everything

109together for the board when that meeting is released. Uh, and so again, it's it's a I think it's a really good opportunity for us to streamline the effectiveness of what we do and what we get for not only the board, but for my administrative staff. It gets everything is done electronically from their office desk. They can kind of upload the documents that they want to present to the board for review. All those different reports and things can also be electronically sent. Uh but what that's going to mean is that board members are going to have to be able to kind of get you know up to speed on utilizing technology in order to be efficient in the work that we do across the board. So everybody this whole district is getting ready to get myized

110you know when it comes to systems and processes for you know the f the financial piece all those things that those 34 recommendation is telling us we need to do. We do everything guys manually in this district and being the largest school district in Connecticut, we have to move away from that. We have to be efficient and we have to be, you know, steward of time, everybody's time. We're spending hours and hours and hours behind the scenes doing things repeatedly and we still we're not there. This is a great way to show the state of Connecticut that we are we're trying to to modernize what we do and how we do it to be efficient about what we do. It's a great opportunity where K when you guys go to your K trainings, you're going

111to see other district speak about how they're using the board piece. Uh it is just a wonderful opportunity to um again streamline processes. So, I'm I'm looking forward to hopefully being able to get the recommendation from the board to um dive into it. There's a lot of training involved with it as well. Danielle has been briefed as the board secretary to kind of work through that with you guys individually. We're going to we're going to we're going to slow this together uh as we learn how to work this whole process. Um and and the approval time we're seeking is just to begin implementing because we already paid for it when we approved the tape membership. So it's it's not a matter of uh of it's a matter of whether we're going to be paid for

112it or not at this point. >> So Mr. Taber. >> Yeah. So like instead of the portal >> Yeah. >> that's what it's going to replace >> and everything will be automatically um put in here um put published to the website. um where the public will have information right when we get it which they should be having. So that's been an issue where our packets aren't posted for them um a few times. So, >> and also the board members can see the board package being built as as as my staff start putting documents into the portal, I mean into the the board book, you'll be able to see it being built until you know uh Danielle releases it out to everybody or to the board members uh is when you'll get the full package together.

113it it's it automatically will will track and update those board minutes and all the things that we're doing. It's all that whole process all in one shebang. So, it's a really good opportunity for us to to move forward. >> Yeah. um mentioned the public information. Um how are we going to ensure that we segregate any uh confidential executive session information that the board may need ahead of time? >> Well, you want to speak to that, Danielle? >> The confidential information is not going to we we didn't release it ahead of time anyway. So, it loses its exemptness, >> right? and and and that and that's that's a problem not getting the information ahead of time because confidential information regarding legal lawsuits and all that stuff we need more than five minutes to read it regarding

114hiring. >> I mean again we're trying to do our due diligence Joe to address some of the concerns that you bring up every year and I think that's something that we're trying to you know do do our due diligence on and so this will help I think help that a little bit. I'm not going to say we're going to be 100% on it. it will because I believe it has a security factor also that prevents from forwarding or other and sharing documents. So it's something we're going to look deeper into in being able to provide those documents to you at that point and as a executive session document will not get the legality of all that portal. It's a very secure portal. And the really cool thing that it does too is it will take

115like the policies and so when you have agenda items, it can link you can kind of link them to what policy that is so that you it will help you educate you guys better or or not educate but remind you guys better of what's >> you you of what policies are out there and stuff and and how it relates. So you'll I think you'll see your work better. >> Thank you. Yeah. Um, are we escape going to be able to train us on this? Are we going to try to maybe get them? >> There's there's a lot of online training that goes along with it where you can do individual training where you get you watch the module, figure out how to get it done. Each one of us has their own little components. And

116then Danielle's gonna spend some time with each one of you as well as needed in order to make sure that you're you're you're you're on point in making sure that you can utilize your portion of the the system. >> So Cape has it all for us to just go in and like you said and board has has all the training. They have all these training modules. We can sign you guys up for the training with board book if you need. I'm kind of I've done a ton of the training. There's different aspects of board book different um or different levels. You're not going to need the level where you're publishing to the website. Your guys aren't going to worry about publishing to the website. We can still run things in a sense both ways. We

117can start running board book and you know everybody getting their feet wet and still do the old the other way too. So until everybody's comfortable. >> Yeah, absolutely. >> How long has this been available to us that we haven't been using? I know you said you just renewed K and we haven't been using it, but how many renewals of K have we had that we had not renewed this? Like how is this the first time? >> This is the first renewal. >> So this is the first. Yes. Okay. All right. Same. Still all these legal questions of if Kate is using it, they're all coming. >> Yes. And we we had to be we had to be worrying me. It's the transition and the you know of the systems and >> we're here to help

118you. I'm I'm interested that I'm hearing are questions that we have whether we working with the current system or we're working with the new system. And I'm just I'm assuming if this is a system that came as uh developed and is work using it with other boards that you know that that stuff can be worked out. But I it's just a question of trying to make sure it works. So I'm comfortable with that. you know, being one of the travel days on the board kind of and that's a different problem. >> You get after time again. Yeah. >> Right. >> Quick question. Expect it's concerned about um the whole stuff in the in the portal, let's say. Is that going to be transferred into uh board book? All that information, all that data that we

119have as far as min things. So, they're upgrading. They're we're we're working on the website and we discussed that. And my understanding is I would have to go backwards and create every single one of those meetings and to to tie it to so I'm not going backwards and recreating 500. Well, that >> we have to keep of the older, you know, portal information. I think we're we're going to be able to have to anniate with technology on that. >> Well, that's just going to be a link. I was working with um like me and Tim were discussing it. So, that's already organized your board portal. It's going to be a link to we're going to go through plan out the board portal. Make sure that there's um doc the everything should be in there. the

120documents should be in there and just link that to the as an archive section section and then everything moving forward. So, Madam Chair, I move to um to approve the enhancement of the board in addition to the other question. I'm sorry. >> Did you make a motion? >> I make sure. Okay. Uh I'm going to make make a motion approval of enhancing the board operational efficiency through technology using uh board book. >> Second move by Mr. Adena, second by Mr. Ben. Any further discussion debate on that? >> Yes. And >> if we did have to go back, let's say like like she said, can't expect her to go back 500 files or whatever, but what if we did need to go back to a meeting in 2016 and look at the name? I'm just >>

121There'll still be an archive section on the website. >> Oh, gotcha. >> So, we still access it that way. >> Okay. >> And for legal purposes, >> but the board you have >> you have to board package, too. Yeah. >> Well, the board on the website, I'm sorry. Board packets are not on the website. This will be moving forward. Board packets are going to be on the website. We can look I mean it's a lot of board packets that have access to >> we still Yes. And like poof disappear. >> We'll find we'll we'll make sure you guys have a pathway to access that information. I think it's an easy way. I I just need to get with Jeff on that. And I think it we'll we'll clarify for you you guys on how to

122be able to do that and give you some steps on pay how to do that for you. >> Thank you. >> It's been moved and seconded. No further. All in favor? >> Any opposed? Any extensions? That passes. Um the next item is an executive session for the evaluation of the interim superintendent Dr. Royce Avery as a public officer employee of the Brickler Board of Education. Is there a motion to go to second move by Mr. B? >> Second by Mr. Bing. All in favor It wants to be out of the >> handile into a session. >> Hold on. >> Right. >> Okay. >> All right. We've come back from our executive session at 10:44. Um, >> Mr. Wilson, >> is there a motion to adjurnn? >> Motion to adjourn. >> Mr. Woodson by favor. All

123in favor? >> And turning on 44.