001Regular board meeting. Roll call, please. >> Mrs. Ayala >> Here. >> Mr. Bickel >> Here. >> Mrs. Hines >> Here. >> Mr. Colemans >> Here. >> Mr. Salzbrunner All right. Pledge of allegiance. >> I pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all. >> All right. Celebrations, we have valedictorian and salutatorian here. Um >> Yes, they um they're not here. >> Oh. >> They have other practices and everything else. So, I'll just go ahead and at this time I'd recognize 2026 valedictorian, um Riley Gearhart, and our 2026 salutatorian, Maria Malcolm Flavin. Um and we will get their um four certificates to them. All right. Congratulations to our val and sal. >> Congratulations. >> All
002right. Uh next we have high school science fair. >> Yes, so the science fair contestants will be recognized by the board. Um, be introduced by their sponsor James Osborne. I want to note that Mr. Osborne was recognized and awarded by the Colorado Association of Science Teachers for his impact in the science development for helping students to become scientists. Thank you so much Dr. Cromholz and the school board. I just wanted to share these two amazing students we have here, Isaiah Cromholz and Kendall Osborne. Uh, definitely the leader of the science fair in our senior uh, high school level. Definitely the leader in our junior level. Uh, we went to state recently and we wanted to make sure we were here and thank you for supporting the science fair, uh, keeping it going. We look to
003be stronger next year. We're going to have uh, students returning with a state experience. At least three or four of them. That really matters in the science fair cuz it's such a different level in TSU. They're there for three days working with some of the world's experts on stuff. They just they grow so much. It's amazing to see see that. Um, Isaiah got the night off from work and uh, to be here and we've got to basketball later, but we wanted to make sure make sure we got here and said thank you. >> Cute. >> All right, audience portion. We do have one person signed up. Do we have anybody Oh, we do not. Okay. Uh, Jordan Davis. And just a reminder there is uh, 5-minute uh, time limit for speaking and make sure to
004follow the guidelines. >> Yes, ma'am. Uh, thank you for for seeing you this evening. Uh, my name is Jordan Davis. I have chatted with a few of you over the last few weeks. I wanted to acknowledge the difficult position that the district is in. Certainly understand the financial challenges you're facing and the weight of your decisions ahead of you. I'm here tonight alongside other community members simply to express our support for the district and for the work you are doing to navigate this this situation. I also want to share that there is a group here tonight including swim families, coaches, community members including seniors who value the pool and the programs that it supports. We believe in the opportunity and the assets that the pool has for for student opportunities, water safety, and community health.
005More importantly, we are here to advocate and here wanting to help. We would like to welcome the opportunity to sit down with the district to explore ways to contribute resources, ideas, >> [clears throat] >> excuse me, resources, ideas, and support to help reduce the financial burden that the pool has. We appreciate you hearing this and we and we appreciate you also commenting that you have no intention of closing the pool. Our goal is to be a part of the solution that helps sustain the pool responsibly and realistically. Thank you again for your time and we look forward to having this conversation further. Thank you. Uh Jill. You. >> [laughter] >> All right. Next we have approval of the agenda. >> I make a motion that we approve the agenda. >> Second. >> I have a
006motion and a second to approve the agenda. Questions, comments? All right. Roll call. >> Mrs. Ayala. >> Aye. >> Mr. Bickel. >> Aye. >> Mrs. Hines. >> Aye. >> Mr. Kolb is >> Aye. >> All right. Next we have the consent agenda. >> I make a motion. >> I second it. >> I have a motion and a second to approve the consent agenda. Questions, comments? Roll call. >> Mrs. Ayala. >> Aye. >> Mr. Bickel. >> Aye. >> Mrs. Hines. >> Aye. >> Mr. Kolb is >> Aye. >> All right. Financial report. >> Please skip the Google additional audit district. >> Who is present? >> Okay. >> All right. Um, at this time we're ready to get Kim and Demetrio. She's doing Here she goes. I will turn it over to Kim and Demetrio. >> Do
007we We need to do the financial agenda the financials first, is that correct? >> Yes. >> Okay. Um, I'll just talk real quickly regarding the March financials. Um they will they are all pre-audit numbers. And you'll hear from Demetri here in just a moment um regarding the fiscal year 24 audit. So, numbers will change just just a hair. Um not too too much. But I need to do still now go do a big deep dive into last school year to make sure all the accounts are in alignment with the grant codes and making sure they're hitting the right accounts in the right fiscal years as well. Um so, looking at this, let me just share my screen. >> [clears throat and cough] >> Um you received your financial packet and I like I said, I'm
008just going to go over just the summary pages. Each of you um in your board packet, you have the full the full meal deal of all your financial reports. Um what I have on my screen, are you able to see it not yet not yet? >> Not yet. >> Oh, there it is. So, this is our cash flow. Where is our cash as of March of March 31st, 2026. So, currently we're still right on track with what we have for the amended budget. We are running right at the the 60-ish percentile for as of March. Um we have been um working with the the whole finance team, Patrick and Jared and Richie to make sure um everything is is um tightened up and and all pre-approvals are being completed on all expenditures at this point.
009Um do you want me to go into more any more detail on that um Dr. K? >> Ready. We're good. >> Okay. So, looking at our cash flow, we still have money in the bank. I'm just going to scoot over to our cash account breakdown. Um so, I know we've talked about getting low on funds. So, um Dr. K, Sarah, and I meet twice a week and review all of our all of our cash. And we try and keep everything in Colorado Trust to gain as much interest as possible. So, looking at March, when you look at the very bottom line where it says remaining checking account cash, I know that looks a little lean, but however, we did do a a Colorado Trust transfer on the 1st of the month. So, we did cover
010it right away right after all bills were paid, but this is what our financials look like as of March 31st. So, we are keeping as much um in the Colorado Trust to gain that interest. >> So, we we move money very frequently into the Colorado Trust, right? >> Yes. >> Yeah. >> Correct. Currently, our state funding does not cover our payroll. So, we're upside down roughly $75,000 between what we receive from state funding and what is paid out through payroll. So, then we have to transfer the remainder amount from Colorado Trust to help with all of the other overhead expenses. Um just scooting over now to our balance sheet. Looking at our balance sheet, I am going to be now doing a deep dive in here since we have our fiscal year 24 audit completed.
011So, I'll be able to correct or re- um reverse the receivables and the payables and and such that are on the books. I know those are all counting terms, but um within the next month, Sarah and I will be doing a deep dive because we're at the end of the school year and we need to be conscious of food service fund to make sure that we're within compliance of our food service funds and making sure we do not or making sure that we have um the equipment that's needed. Um And any of the other um items that are are needed before the end of the year is completed. We did go over the um during our working budget meeting, we did go over those capital projects. So some of that is all all intertwined, so
012we'll have more information for you coming in May. >> I know I've asked this before, but could you just explain to me again the accounts receivable? What are the Oh, go ahead. Sorry. >> No, no, please. Um what the accounts receivable means is we have to record the books that we're expecting money and we did not receive it in the current school year or the current month. So we're expecting money from a source. So we we want to record it on the books that we are expecting that revenue to be coming in. >> Got it. >> So if I scoot down here, I have the balance sheet showing, you'll see like this taxes receivable. >> Right. >> So that taxes receivable, now that FY24 is completed, now I can go in and reverse the receivables
013that we received last school year to cover some of those. So I will be doing a deep dive in there. Um I will be working with um He's one of our auditors just to make sure everything's all buttoned up before it does get handed off to audit. Do you have any other questions? I'd like to give Dimitri some time to talk about the about the audit. So, that's where >> I'd like to do the report first. >> Okay. >> I'd entertain a motion to approve the financial report. >> I make a motion to approve the financial report. >> I'll second it. >> I have a motion and a second to approve the financial report. Question, comment? Hearing none, roll call. >> Mrs. Ayala? >> I. >> Mr. Bickel? >> I. >> Mrs. Hines? >> I.
014>> Mr. Kolomats? >> I. >> All right. Next we have the 23-24 audit. >> Uh good evening board members. Um thank you for having me present this evening. Um so, we have completed the the um I guess the the I wouldn't say the audit but the disclaimer of the audit report which is which you should have received. I sent it over this afternoon. Um and along with the recommendations that come that come with them. I will be happy to share my screen and kind of walk through what I typically do when an audit just to give you guys a kind of a a breakdown is what I do is kind of go over our responsibilities, what we did, what we didn't do, um and kind of go over the results of the audit as well
015as any recommendations that we have made. Um obviously we've had the conversations uh a few months ago about what to expect from the fiscal year 2024 audit and what the opinion's going to be. And so, we have kind of fulfilled that with fulfilled that expectation. We are we did have a disclaimer of an opinion and so, I will just kind of present and show you kind of what it looks like and really what it means in terms of, you [clears throat] know, how it really impacts um the district overall. >> Demitri, can you speak up just a little bit? There's a lot of background noise and it's kind of hard to hear. >> Is that better right now? >> Yeah. >> Okay. Yes, I will try to speak up as much as I can. So,
016my point is I will try to explain the the report you're you're in front of you or the report you're going to see as much as I can and try to explain in layman's terms so you can kind of understand what it means for the district. I don't have all the answers, but I I can explain what this means and kind of how to move forward and and how to remedy the situation the district is in it currently. Um And I again, I try to keep things pretty layman's terms. I try to keep it pretty straightforward so you can um so you can kind of understand what's what's really happening and if you have any questions, please interrupt me. I'm happy to answer any questions as we go. So, um usually what we do is
017we kind of talk about our responsibilities in the financial statements and everything we we usually do. And we we we exercise professional judgment. We follow auditing standards that's generally accepted auditing standards like every other auditor does. Um but we exercise professional judgment and maintain professional skepticism throughout the audit. Obviously, we're independent of the district. We're not, you know, we have no relations to anyone at the district. We are independent purely independent auditors that are hired by the Board of Education to perform the audit. Um where the way we we do the audit is we identify and assess risk of material misstatement. So, really our goal of for any audit, for those of you may or may not know, is to present Make sure that the financial statements presented to you and to present to the
018public as well as this as well as the state auditor's office and the state are are presented with with with with no material misstatements, basically. That we are basically saying the financial statements, aside from any sort of insignificant information, you can is is reliable. Um whether due to fraud or error. And so we design for perform our procedures in response to risks that we determine. Now, we determine risks for each area within the financial statements and decide whether we should perform uh certain procedures or additional procedures. If we feel that there is risk, we will we will perform additional procedures. Um the other thing we do we do is we obtain understanding of internal controls. So we discuss with management of how things are done and what is the process? What's the process for payroll?
019What's the process for accounts payable? What's the process for different different areas um of the district's uh financial financial processes or financial procedures. And so we try to understand how everything works to see if there's and follow that up with testing to determine if there's any potential um uh uh lack of internal controls or best practices issues of best practices and things like that. And then we look at policies and significant accounting estimates cuz not everything in the financial statements is is relied upon from a third party. Not everything can be tied to a bank statement or an invoice. So there are some things that are estimates in the financial statements that we evaluate based on the governmental accounting standards. Now, um we also look in our judgment that whether there are any conditions or
020events that may raise doubt about the district's ability to continue within a reasonable period of time. Now, that can be anything from, you know, over budget and not enough money in the bank account, like kind of like the the issues that have been that the district's been facing. And so, we evaluate that and we look at that closely to make sure that, you know, that we report that to the public, we report that in the past part of our report to say, "Yes, maybe there is a concern or there is something to be worried about in terms of operations moving forward." Maybe it's something that can be remedied, but it's something that, you know, we need to disclose. So, with that being said, you know, as we discussed previously, because of the way the financials
021have been prepared and provided to us for fiscal year 2024 and the fact that there was some information that was maybe even unavailable and and the accounting records not being in in the shape that we're used to seeing or being even auditable, to be honest with you. The financial statements that we looked at for fiscal year 2024, we barely even were able to dive into because they were not unauditable. Cash was not reconciled, bank statements were reconciled, and so, there was a lot of issues. And due to the timing of everything and the fact that the district needed to complete the state statute in order to avoid further withholding of property taxes, we felt, based on discussion with you and management, that it's best to just go through with the disclaimer of an opinion. And
022that's what the results of the audit are is that we're basically saying we're not giving an opinion on these financial statements. But the financial statements you're looking at in this report are unreliable. We we cannot verify that or opine and say that these financial statements can be relied upon by anybody looking at them, really. And that's what that what that's all that means. Um and before I move on, do you have any questions, Glenn? >> No. >> Okay. Moving forward, we also noted that we we obviously did some procedures, just so you all know. We did procedures. We did look at information. We did look at Kim and Sarah were helping us provide some information to us. So, we are actually able to do some procedures. We didn't just say, "There's nothing here to do
023and we're done." You know, we we actually looked at everything. We're required to look at some things and make the determination based on our procedures. And I think that's something important to point out. We are not opining on anything. We're not saying there is any fair presentation of financial statements or that we can um we we can, you know, you anybody can rely on it. We're not saying that at all. We're not We're disclaiming everything, but we did procedures. So, we did identify some corrections from the previous year year's financial statements. We did identify corrections in the financial statement we were given. We didn't look at all of them, but we looked at some of them to see if if we saw some obvious ones that we worked on with Kim and Sarah. We pointed
024them out and put provided the adjusting entries to them. Although, again, it's hard to know what you know, we did this doesn't encompass all corrections. It doesn't encompass all adjusting entries because again, we didn't really finish our audit, basically. We didn't We can't opine on anything here. And so, that being said, we also wanted to point out that we do feel because of the lack of cash that the district has at this point, that we felt it's important to to call out the substantial doubt about the district's ability to continue as a going concern. Meaning, we're we're basically saying alert, the district has some financial issues outside of just the audit here. We're talking about there's some maybe some cash concerns about about um how much cash there is in the bank. Is the district
025going to have enough to make payroll? I also We also understand that this audit is as of June 30th, 2024, right? So, we're looking at a period in in between '23 and July 1st 2023 and June 3rd, 2024. We're not talking about, you know, April 27th, 2026. We're talking, you know, so we have to kind of focus our time frames a little bit. And so at that point in time, we would say there's a going concern. However, we also know talking to Dr. Fromhold and Tim and Sarah and your management that there's a lot of things being worked out that are mitigating this issue. We are fully aware of the circumstances of the situation. So I know there's remedies being occurring as we speak. So again, any of the recommendations that I make tonight or
026any of the comments that I will be making tonight is something that is based on our previous discussions and discussions with your management that they're being already being in process. You know, you feel it's being remedied. Now, we haven't verified anything, we haven't audited anything. So it's hard for us to verify that, but based on our conversations, it seems like the remedy's already being put in place. Everybody's aware of the situation and things are being improved. Any questions before I move on? >> No, but I'm listening. >> Okay. So that being said, again, once again, this is going This is a disclaimer of an opinion. Um and we're just purely talking about financial statement audit. It's an independent audit report, financial statements only. Um and so we usually provide a governance communications letter to you
027that kind of talks about here's what we found. And this this letter really is intended for the governing board as well as management and to really talk about any issues that we discovered. Um obviously, a lot of these are very, very, you know, obvious and something you've you've been made aware of previously. So there's nothing new. We I just want to make sure it's pointed out and that, you know, we are doing our due diligence and doing our jobs to disclose this information to you. Um and so we we obviously have a disclaimer of an opinion. That has to do with the accounting records not being prepared honestly, you probably have a combination of of the multiple factors that happened over the course of the last few years to cause this. And including, you know,
028just not managing proper accounting records and mismanagement of funds and and and and in terms of, you know, how it's how it's done, so how it's tracked. Um and turnover and all these factors factor in in what the in that caused the situation the district's currently in. So, that's why the disclaimer of an opinion is there and we just can't audit the information provided to us. And cuz usually what happens is in an audit is we're provided the information. The information is as accurate as possible. And then we start auditing and we basically verify that everything is done correctly and the information is doesn't have any material mistakes, this is what we call it, or significant errors. And we weren't able to do that because we knew there were significant errors right up to that.
029And due to timing, there was not enough time to really for someone to go through and clean it up before we could even start the audit. So, we barely even touched the financial statements. We did again, we did some work on them just because we wanted to make sure that we are giving you a proper uh opinion here that we are displaying it's proper to disclaim an opinion, so we tried our best to give to actually work through everything and get through everything, but we realized due to the time uh due to time, that was not going to be possible. So, um again, and this kind of stems into my next comment about internal controls and best practices. This all stemmed from the fact that the district did not and proper internal controls and best
030practices in place. And that's super important. And I think we have that remedy now with Abacus coming in and there I know Kim and Sarah are working to clean up their accounting records. So I know I think you have some of that already already corrected, but you also have to keep in mind that they also have to be corrected internally. Like there has to be processes and policies in place at the district. So if when the risk turnover, that it's not impacting the financial best practices and the accounting records and internal controls of the district. That is extremely extremely important. Again, you know, any of these lack of internal controls and lack of policies, I mean, it could cause not only error, but could cause potential fraud potential with fraud. The The there it's hard
031to know what's there and what's not there when there's no internal controls, there's no, you know, uh segregation of duties, reviews and approvals. Those are the common things when it comes to internal controls and best practices. Uh and and also oversight by board and presenting information to the board. And so the board's aware of of the financial position of Europe. Clearly that's happening now, um but I'm not sure it happened previously and that may have contributed to the cause of of the current situation. Um moving on to non-compliance and fraud. Again, when you don't have controls in place, when there's not when the district doesn't have proper uh policies and procedures in place, uh when there's major staff turnover, some things fall through the cracks. There's could be non- There's definitely non-compliance with the state
032auditor, that's for That's a fact. That's why there's being property taxes being withheld. And so now that maybe that's resolved, that's going to hopefully, you know, um become more timely and then the district can become back into compliance with these these state statutes. However, again, we are because we are not We're not sure we still have unresolved and unreconciled material misstatements. We have been not audited any numbers in your financial statements. You can't put any reliance on them. We can't put any opinions on them. Um and therefore we we don't know what we don't know. And so we want to make sure you're aware that there could be non-compliance and potential fraud that could come out at some point, you know, eventually down the line. Um but that's something you you know, it's important to
033be aware of that there's not really an audit performed. So it's hard to know what what what's going on during fiscal year 2024. Um and what was non-compliant. Um and then yes. >> How long are we going to I mean how long is how long? When are we going to know this is over? >> Uh I'm not sure I I understand the question. >> Well, you you indicated there could still be further issues or further complications. When are we going to know there's no more complications? There's no more issues? When are we going to know it's put to bed? >> Uh Mr. Collins, it's I'm not really sure. It it's hard to know at this point. You know, until we start going into fiscal year 2025 audit and 2026 audit and so on. I mean,
034right now you know, you're finishing you're have a disclaimer of opinion on fiscal year 2024 audit. So, you know that that's done. And you move forward. But I'm what I'm saying is there's there there there's things that are not audited. Obviously. So, it's hard for me to say what could come out or what's not what's there, what's not. I can't give you a time frame when it's finished. The audit is the you know, we have not audited anything. So, it's hard for me to give you anything definitive about the fiscal year 2024. Now, the moment we audit a financial statement or audit a fiscal year, then I can give you maybe some idea of the state of the information that uh the state of your financials at that point. But, at this point, I can't
035give you that. >> So, what I'm hearing is you're saying 23-24, we're done with that. We're doing a disclaimer. But, now you're getting into 24-25 and you don't know what that's going to be all about. Jack, you're >> Right. That's correct. Cuz we haven't gotten there, you know, and it's nothing nothing, you know, it just I want to make sure, you know, the board is aware that fiscal 2024 was not audited. >> We didn't have Abacus until spring of 25. So, prior to them being there, we don't really know how it all went. Okay. >> Yeah. Yes, thank you. Yeah, that's that's it. >> if I can add, that's what I have to go in and do a deep deep deep dive just to make sure everything is recorded properly from July of 24 through
036June of 25 cuz we I believe we began May of 25. >> That sounds about right. So, one thing I want to point out that the district also had um uh and what we call it an attestation that was required by um the auditors for the PERA for the pension the Colorado PERA um which provides the pension is a pension association. Um we did identify some things that we will put in a separate report that is really meant to be for Para. We did that on behalf of them. They asked every auditor of every district to go in and do a bunch of a bunch of verification of certain data. We did find that there were some things that were not calculated right and that there were some things that probably should have been calculated
037differently and this may cause some issues, you know, for the district in the future. Um And I I did want to point that out um here because we were aware of that. Again, we didn't do an audit, but we did an attestation for for that we're kind of compounding on the on the tail end of completing here for Para on behalf of Para and I thought it was kind of important to bring that up to the board of board of education to see you as board members know that it's also uh has been sort of dug into and and there were some things that were >> Can you say that again? Sorry, you're you're cutting out. >> Oh, I'm sorry. I apologize about that. Yeah, so basically the we we had to do an attestation
038over Para information that was that was reported and calculated by the district and that was submitted and reported to Para. And this information we're on the tail end of completing and the the information that um that we identified that we reviewed and identified there were some attributes that Para was requiring us to verify that were not uh that were not satisfied. How's that? And were not calculated properly. So, I did want to point out that there was a couple of things that from and and keep in mind that we were looking at looking at records from January 1st, 2024 through December 31st, 2024. So, we're not talking about 25 or 26. We're purely talking about 2024 calendar year. And that was required by Para to perform. And so, um just so you're aware that there
039were some issues there and I just want to generally point that out to the board and to and to Dr. Prommel as well. Um grants reconciliation, again, grants were not reconciled at year end June 30, 2024. So, we are not able to to verify anything with grants and say that they're properly reconciled or again, we're disclaiming an opinion which means we didn't audit grants. Um anything we identified through our typical process, we have we have provided a journal entry or an adjustment to correct if we did identify anything, but again, we're not opining on anything. We we just looked at things, we delved into things just to see if we can make heads or tails of anything and so, see if we can identify some easy easy corrections, but again, it's hard to say because
040we we couldn't really fully audit the district for fiscal year 2024. So, there could be some non-compliance. So, there could be some issues with with the grants. Again, there was some serious lack of internal controls and therefore, it's really difficult for us to really give you a strong opinion on it, but or any opinion on it, but really I just want to point out that there could be non-compliance with grants and it's important to point that out. >> Can I also add Demetri with the grants? Um even though you weren't able to verify Madison's before we can finish the FY 25 audit, um Madison, part of our Abacus team, she still has to go in and um realign them and make sure everything is per that grant and what it is um intentions are for.
041So, we will be going back through and reviewing them again. >> Okay. Um shh substantial uh doubt about the district's ability to continue as a going concern. This has to do with like I mentioned previously in our audit opinion description, has to do with the fact that there's, you know, an estimated cash balance of 3.9 million. I took this straight out of your financial report, Ken. There's only 68.7 days estimated days left in cash at this point. And so we just want to point that out. Really, it sounds like things are going to recover. You know, the district's clearly working on a remedy. So I didn't want to point that out and but but again, want to bring that to your attention. And again, you know, if we have auditable information in the future, and
042that's what this district's comment is basically saying, look, if we have auditable information, we have information that's more or less correct, you know, or something we can start to audit, we will audit it and we will get it done in a timely manner, but due to the to lack of information, lack of accurate information, we were not able to complete it. And especially the timing that required for the district to receive its funding, we were not able to complete complete the audit. Um But at this point, you know, we're kind of looking forward. So with that, I I really don't have anything else. I'll stand for any questions or any anything you want to discuss. >> Has this happened in other districts before? >> Uh a disclaimer? >> Yeah. >> Yes. Yes. >> Do you
043know which districts it it was? >> I I do, but I I don't know if I'm at liberty to say. >> [clears throat] >> But maybe Kim can fill you in. >> I'm not sure at this point. I I I believe we could probably have Dr. K look in and see um which ones it is. And relate that. >> One thing I do know is we are one of three districts in the state that doesn't have the 23-24 audits done. I had a meeting with CDE last week and they need there's a glitch in the system to where they can't start the 26-27 pipeline until they go back and wrap up 23-24. So, we're not alone. There's two other districts that are witnessing the situation, but um we're making sure and we have the partnership
044in place to support the controls that Demetrius talking about. As soon as we can audit the 25-26 year, we know we're going to be fine. Our current school year is just getting to that point. >> Any other questions for Demetrius? I do. So, you're saying that Hera and our grants could still come back and we end up having to pay something back? >> To pay something back? >> Like we might get fined or we didn't cuz we didn't finish our grants. >> Yeah. >> We don't have any minutes, so okay. >> Yeah, absolutely that could happen. That could happen. I'm not saying it will. It could happen. Absolutely. [snorts] >> Any other questions for Demetrius? >> What just timeline on 24-25? >> Um from our point of view, uh from our point of view, I
045will say that we haven't even started. So, we're we're kind of we're working with Abacus. Abacus needs to clean up the accounting records for us to be able to audit them. It's kind of one of those things. It's not audit, you know, we're not bookkeepers, we're auditors. So, we have to be able to audit information. So, information has to be presented to us, has to be accurate, has to be complete. And once it's complete, accurate, then we are able to to start the audit. I will tell you this that, you know, we have cycles. I'll you know, I'm not you know, I'm not going to sit here and tell you, "Oh, as soon as you guys have it ready, we'll start on it that day." That is, you know, we have to schedule the audit,
046we have to schedule time, we have to schedule our our staff. So, you know, we are in the middle of currently in the middle of our busy season, which is going to last probably through June or July. And so, afterwards, we can you know, or sometime during that time, as our staff frees up, if if the information's ready, we can schedule a time and start the audit. So, I I do want to make make sure I'm careful setting expectations in that, you know, it's not something that's super quick that we can turn around, you know, in a matter of a week. It's something that takes probably uh a month or two months, depending on how clean the records are. Right? If the records are at a decent rate, or or fairly clean, then it the
047audit can go as quickly as 30 days. And um and we also have a quality control process internally, where we review financial statements. So, if our staff do the audit work, our managers review the audit work, I look at the financial statement once it comes through. So, there's a whole three levels of review in our firm. So, I do want to set the expectations to like right that, you know, as soon as the accounting is ready, doesn't mean the audit's going to be ready a week later. It's going to probably take a little bit of time to get it done. Especially if you want, you know, a potential clean opinion or uh and that requires, you know, us to make sure that the financial statements are materially correct. >> I have another question. All right,
048I'd entertain a motion. >> So, I would make a motion to approve the '23-'24 >> What is it called? >> audit. >> Second. >> I have a motion and a second to approve the '23-'24 audit as presented. Question, comments? All right, roll call for Gretchen. >> I would just I'm going to take over. Once this is submitted, um what's the turnaround from the county? >> Um >> Do you know or is that >> I'm not sure. Kim, the question was I don't know if you heard the question. Um once this is turned in, how long before the county releases the >> Yeah, I worked with another school district recently and I believe once everything was finalized, um I do have an appointment. Uh I have most um items ready. There is one form that you'll
049have to sign. Jill has that for you tonight that needs to be signed. Um I have to create a pipeline file yet. I'm working with the the software on Wednesday, so hopefully by end of week it'll be submitted to CDE and all parties that are needed. And then usually what I found it it was like about a 2-3 week turnaround before the property taxes were they came in for another district that I was working with. >> Thanks. If I may question Oh, sorry. Go ahead. Go ahead, sir. >> Go ahead. No, go ahead. >> I I just wanted to say I just wanted to finish. I was waiting I don't know what time what what's the appropriate time to make this comment. But there's two things I want to say. Number one is I know
050it all sounds like doom and gloom coming from an auditor. But I do want to say that things are progressing based on my just observation. Things are progressing in the right direction, it feels like from my point of view from my point of view and talking to to Kim and Sarah and and Dr. Fromholz and I I think you know, Dr. Fromholz is doing a really great job leading the way and that making and setting the ship right. So, I I do want to say that there is there is positivity in this, you know, that there it's not just all doom and gloom. So, I just want to thank thank everybody for for working hard on this and then really trying to to get us information so that we can finish this this report. Thank
051you. >> All right, roll call. Mrs. Ayala? >> Hi. >> Mr. Bickel? >> Hi. >> Mrs. Hines? >> Hi. >> Mr. Coleman? >> Hi. >> All right, moving on to minutes. >> Make a motion to approve the minutes of the March 23rd, 2006 board. >> Second. >> I have a motion and a second to approve the minutes of March 23rd, 2026. Questions? Comments? Roll call. Mrs. Ayala? >> Hi. >> Mr. Bickel? >> Hi. >> Mrs. Hines? >> Hi. >> Mr. Coleman? >> Hi. >> All right, superintendent's report and recommendation. >> [clears throat] >> Okay. Um, the first thing on the report is we last week we had our first meeting for the strategic plan. We had about 30 people, community members, students, staff, um, representatives from Otero College and we got together over 2 days
052and we built the initial draft of our priorities. Um, we are currently sent it out to all the community members. We we have emailed it to all our parents, um, students fifth grade and above to get feedback on those priorities that we've identified and then we will come back in May, the the core group will meet to finalize our strategic plan and then we will bring it will present to the school board and send um broadcast it out to our community but they really did it was a lot of work um we're excited about where we're headed. Um it was just a really good experience. And I did want to say something. We had one of the things that we had from um they did an audit um each school and um the primary and
053intermediate also had the same TNT which is our partner audited last year. They were um their scores doubled when they came back. We were um 90 95% as far as seeing quality curriculum, seeing strong instruction especially in math was like 100% in the intermediate. Um something that they our presenters who do this in all different school districts have never seen such a jump. So it's something we're really excited about um that we are seeing gains and we think the entire system will continue to see gains as our teachers are working really hard, um administrators and uh students are doing a great job and we just finished testing and we're really confident you're going to see a lot of gains um next in August when we get our results back. The next thing I have is
054just wanted to update. We are moving junior high sports um to after school. In the last few years they have been doing it there in their seventh period and we want to one make sure we are our students are able to take all their classes. Um so we're really excited about that opportunity plus not limit our time with our athletes to where they have to do quick practice and we are on the way we are going to bus students back to the intermediate after school to practice in the gym and on the football field. So, we'll begin that next fall. And again, we have everything set up. Mr. Grassmick worked with all of the coaches. He sent out some information to community members. So, we're excited about that move. It's going to help academically and
055it's also going to help athletically giving those kids more time to learn the skills in their chosen sports. And the last one I have, I just wanted to let everybody know we are suspending Lahaina's um our swim team at Lahaina High School. And the reason we're doing that is the last 2 years we've had zero athletes on the swim team from Lahaina High School. They have been coming from other school districts in the area, but we have been paying for all of the coaches, all of the transportation, all of the registration, all of the fees. That is the reason that we've done that. Um SWE is looking to partner with us on looking at how they can sponsor a swim team, but I just want to be clear that is the reason the swim team
056will no longer be with Lahaina High School starting next next fall. >> And that's completely separate than discussion about >> Completely separate. >> Two different things. >> We were looking at I mean about 20, 25,000 dollars to run a swim team without any athletes from Lahaina. We felt that money needs to be redirected to our students. >> Any questions for Dr. K? All right, moving on new business. Approve resolution teacher contract cancellation. Dr. King. >> This is the this is the final stage of the reduction of force that we have had the last two meetings. Nobody No one called for a hearing, so at this point we I think we provided you in your packet the teacher names, but we have finalized that process. >> Entertain a motion. >> I'll make a motion to approve
057the teacher contract cancellation resolution. >> I'll second it. >> I have a motion and a second to approve resolution exhibit E teacher contract cancellation as presented. Questions, comments? Hearing none, roll call. >> Mrs. Ayala. >> Hi. >> Mr. Bickel. >> Hi. >> Mrs. Hines. >> Hi. >> Mr. Coleman. >> Hi. >> All right, letter B approve certified staff employment renewals. >> So, I recommend the approval of certified staff renewals for 2026 2N resolution 2026 2P and resolution 2026 2U as presented in your board packet. >> I'll entertain a motion. >> Before Can I ask questions after the motion? >> Okay. >> Then, I make a motion that we approve the certified staff employment renewal, certified 2026 to N, certified 2026 to P, and resolution unique 2026 to U. >> Second. >> I have a motion
058and a second to approve resolution certified 2026 to N, resolution certified 2026 to P, and resolution unique 2026 to U. Question on that. >> So, so far, the only the only person that took a unique contract is the person named in that. Probably nobody else has asked for anything, right? >> Correct. >> So, when is their deadline to do that if they're going to do that? >> We have um we're pretty close to it. I mean, we reached out to everybody who was retiring and offered it to them. Um you know, some were not interested, but we have reached out and so we looked on who was retiring. Um we did that a few months ago. Um and that's So, that's where we're at with that unique contract. >> Can you explain what a unique
059contract >> Sure. So, um a unique contract is So, when a teacher retires, you're able to work um Well, we're critical shortage, so um but if So, basically, the teacher can work 110 days in a calendar in a um calendar year, not a school year, but a calendar year. So, um if somebody's retired, we can bring them back on a unique contract and they're able to um still maintain their their retirement, um their pay, and also get paid to do um to be a teacher. >> Okay. >> And it's called a lot of different things, transition contract, um unique contract here, um 110s, um and the district can apply for also 140's, um, cuz 110 problem is if you start in the August and then you come back in January, I mean it ends so
060the new year starts in January, but if we were to bring you back that following school year you'd run out of days. We do, because we are a rural school district and our needs, um, we are able to apply for, um, critical shortage. So, we're able to bypass those 110 140 restrictions for anybody who's retired as we're just trying to fill positions. >> So, these are for all these are all renewals, right? >> Yes. >> Maybe this isn't the right place to ask you, but what about the How many vacancies do we have that need to be filled? >> Um, we have teaching wise I think we have three or four >> Okay. >> off the top of my head and then, um, I would think we might have a couple classifieds out there, but,
061um, we have about three or four maybe five, but current openings. >> Okay. >> And the principals have been working to, you know, bring, you know, to fill all their slots, so we're pretty close. I mean, as far as this is end end of April, we're pretty close to having everybody staffed. >> Okay. Okay. Action item. >> Are there any other questions or comments? All right, roll call. Mrs. Ayala? >> Hi. >> Mr. Bickel? >> Hi. >> Mrs. Hines? >> Hi. >> Mr. Kolmitz? >> Hi. >> All right, uh, letter C, uh, the Director of Operations job description. >> Yeah, so we are presenting, um, a position for the Director of Operations. Um, this is a new position created to cut costs. What we have actually done is we are um we have a position
062the director of facilities and director of safety. We are we're cutting both positions um and then creating a director of operations. We also have not replaced our human resource um person from back in late summer, so we've gone this year without one. So, we're really consolidating three positions down to a director of of operations who will oversee all those departments. >> Good. >> I make a motion to uh approve the director of operations job description. >> I'll second that. >> I have a motion and a second to approve job descriptions for the new director of operations position. Uh questions, comments? >> I just wanted to say I know that one of the things during meetings for that was brought up by the teachers was that they didn't have a direct point of contact for HR.
063So, I think this is really nice that they will have a clear person of who they go to um if they have questions. So. >> All right, roll call. >> Mrs. Iola >> Aye. >> Mr. Bickel >> Aye. >> Mrs. Hines >> Aye. >> Mr. Coleman >> Aye. >> All right, letter D, approve revised administrative support salary schedule. >> All right, so this [clears throat] is uh I recommend the approval of the revised um administrative salary support salary schedule. This is the salary schedule for the new position to include director of operations. Um we basically just took the other the scales for director facilities and use that same um scale. So, that's what we're asking for for this position. >> I have a teeny motion. >> I I >> Go ahead. So, we accept the
064uh administrative support salary schedule. >> Second. >> I have a motion and a second to approve the revised administrative salary schedule. Questions? Comments? >> I just I I would like to say that I'm glad we have on here we will recognize an increase for our business manager people with a BA and a BA and an MA and a CPA. Because I think that's important to get qualified people in those positions that we're willing to recognize those things. So, I don't know if that's been done. I'm not ever looking at the administrative salary schedule. Uh um I'm glad that it goes to getting quality people. >> And I assume this is comparable with other districts. >> Yes. >> All right. Any other questions? All right. Roll call. Mrs. Ayala? >> I. >> Mr. Binkle? >> I.
065>> Mrs. Hines? >> I. >> Mr. Kolmets? >> I. >> All right. Next we have approve Capturing Kids Hearts renewal. >> Yes, so we're asking to approve the Capturing Kids Hearts contract as presented. The renewal will be paid with from funds with the school health professional grant. Um, it's where how we've been paying for the last few years and we'd like to continue it. We've seen a lot of growth from Capturing Kids Kids Hearts at the primary and the intermediate school. >> Make a motion to approve the Capturing Kids Hearts contract. >> I'll second it. >> I have a motion and a second to approve Capturing Kids Hearts renewal. Questions, comments? >> Can we expand this to the junior and senior high, this program? >> Yes, we can look at it to expand it. That's
066going to be part of the work we come out of with the strategic plan. Okay. Thanks. >> How much longer do we have that health grant or is that something we have to apply for every year? >> Well, we have So, we have the money right now. Um, it is a state grant, so unfortunately, we don't know if that grant's going to come back. So, we had the money saved for this, so we'll take care of it now. Um, we're spending all of that down by the end of this, um, June 30th this year. I'm hoping it comes back, but right now it's just really it's touch and go with all of what everything the state's having to do with their, you know, several billion-dollar deficit they're balancing. Um, so they've, you know, it looks
067like they're getting ready to approve a budget, but the grants are something different and we'll find out where we're at. So, I mean, it's just we have to wait and see. >> But, when this program expands to junior and senior high, the cost will go up, right? >> Yes. >> Okay. >> I will say a lot of the teachers talk very highly of this program and the effects that it has on their students. Um, and I think the teachers do a good job of executing this program. I believe we've been a showcase school at the intermediate and the primary for three years? >> Yeah, two or three years. Three years. >> Um, so I think it's really great that we can bring this for not only our students but also to support our staff as
068well. >> One of my favorite things when you walk in to the classroom, they have this part of their Capturing Kids' Hearts in each class have an ambassador. They have to apply for it. And those kids walk up, introduce themselves to you, and they will tell you what they're working on, what they're studying. Um, it's, you know, it always makes me smile when you walk in and the kids are excited to come tell you about what's going on in their classroom. >> And and they know their role, too. When we walk in, there's kids running to come up, "Hi, I'm our classroom ambassador." Yeah. And so, yeah, it I mean, it's it's neat to see that. >> I was at a town hall assembly last month, and they recognized the sixth graders because they had
069so many students apply to be the ambassador. So, that was really cool cool to see all that. >> Yeah. >> The involvement. >> You hear I hear a lot of very positive things about this program. >> See, that's why I think it's important since the sixth graders are so excited about it, it should follow them up to the other grades. >> I always say some fun spring trips to Disney World always make the kids excited that the sixth graders are the ones. >> Any other questions or comments? All right, roll call. >> Mrs. Ayala? >> Hi. >> Mr. Bickel? >> Hi. >> Mrs. Hines? >> Hi. >> Mr. Coleman? >> Hi. >> All right. >> Um, approve 2026-2027 Charter Schools renewal. >> Yeah, so I recommend approving the 26-27 Chartwells renewal in the amount of
070$29,820 as presented. Chartwells is the district food service provider. >> I'll make a motion to approve the 26-27 Chartwells Chartwells renewal contract. >> I'll second it. >> I have a motion and a second to approve the 2026-2027 Chartwells renewal in the amount of $29,820 as presented. Questions? Comments? >> I would just like to make a comment since we're we're already there on Chartwells is an independent contractor from East Otay schools. So, when people get upset about the menu or things like that, that's not East Otay school district's control, correct? >> It's Chartwells. >> Right. And so, um as we follow chain of command, I think that there are parents that need to um recognize that meal choice needs to follow along that, too. And you talk to the kitchen supervisor, you talk to Chartwells. Um
071because our only option is just not giving you a contract. And former contract, I mean, we Yeah. So, I just want to make that a public statement tonight. I hear people talking about, "Oh, change the menus." And that's not something East Otay school district controls, correct? >> Yes. >> Yeah, okay. >> I know during um meet and confer, some of the staff brought up um they wanted the staff wanted larger proportions than the students were getting, which makes sense. Was that ever addressed? >> That was we worked There was at the primary and we did working with Bell on that. >> Um, do you know are they going to be doing the summer one program? >> Yes. There'll be more information coming out, but they are they are prepared and they're we're getting ready to
072send that out to the community. >> All right, roll call. Mrs. Ayala? >> Aye. >> Mr. Bickel? >> Aye. >> Mrs. Hines? >> Aye. Mr. Coleman? >> Aye. >> All right, letter G, approve supply fan motor um by Trane for the swimming pool. >> Yeah, so this is um we're asking for $16,005 um to fix the fan motor installation when we approved the back in I think I can't remember it was January when we did the original one. They went in and they figured out that the fan needed to be correct fixed as well. So, that is that to make sure this will be to get the pool operational. Cuz right now we haven't been operational in a while. >> I'll make a motion to approve the purchase of the supply fan motor for this
073swimming pool. >> Second. I have a motion and a second to approve the supply fan motor and installation by Trane for the swimming pool in the amount of $16,005. Questions, comments? Hearing none, roll call. >> Mrs. Ayala? >> Aye. >> Mr. Bickel? >> Aye. >> Mrs. Hines? >> Aye. Mr. Coleman? >> Aye. >> All right, letter H, approve revised exhibit JQ-E on first revised final reading and approve revised exhibit JQ-E list of fees on first revised final look. Did I put on there twice? But they're the same thing. >> Yeah, I'm sorry. Okay. >> [laughter] >> Apparently we needed to type it five times. >> You want to be sure. Dr. King. >> Um this is it's a requirement to we have to have policies that reflects our actual fees. The van wants to increase
074fees from $15 to $20 and the ceramics fee is $30. >> Make a motion to re- approve revised the exhibit JQ-E. >> I'll second it. Sorry, Dr. >> I have a motion and a second to approve revised exhibit JQ-E on first revised reading. Questions? Comments? >> Do How does this compare to uh our neighboring districts, you know? >> I don't know how it compares to our neighboring districts, but I know in bigger locations this is extremely um not very much money compared to what I've seen in other places. >> All right, roll call. This is Ayala. >> Hi. Mr. Bickel. >> Hi. >> This is Hines. >> Hi. >> Mr. Kolman. >> Hi. >> All right. And board comments. >> Can I I hardly ever have a comment, so could I Least that I may
075not have one again. Um I just thought on our on our you know, people residing and retiring, and I want to make a statement of somebody that she put up with me a long time and I I want to recognize her because when she came to the district I was really off and I I said, "You know what? I don't need anything from you. Don't come up bother me. I don't need to do this." And um I learned a lot from her. Uh just when she would come in and she'd say, "You know Ben, this is how we need to do this." And so I mean, I know we all get old, we have to retire, not that you'll ever get old. I I'm a we're grandparents and and we haven't always seen eye to
076eye on stuff, but I don't even know how long we worked together, but I can honestly say that I enjoyed working with her every day that I did. And so I just wanted I don't I don't know if she wants me to say her name, but I want to recognize Jennifer Fox Open for her commitment to the high high And and I I never served under her when she was principal really. When I was there you she was assistant principal and you what were you the instructional coach. That's why I said she she taught me stuff and she was especially the year I did junior high. She was invaluable that year. So, thank you. Yeah. Well, I never worked for Mrs. Fox Open, but I I worked with her. She was asked that and hope
077you have a lot of time with your grandchildren. So, and Mr. Bickel gave me some pointers about Disney World. So, The last thing um two things I would I just want to say um I know we're getting into a really busy time of the year um with plays and concerts and programs and so I just want to wish all the faculty and and students and staff good luck and hang in there. The end is almost in sight. And the final thing is, I know it was a little depressing tonight um and frustrating listening to our audit report, but we really do have a lot of good things going on um in this district. And we've got good leadership and and um it sounded a lot not trying to diminish or downplay the significance of what
078we heard, but just hang in there. Stick with us. Um we're headed in the right direction. >> Um we had an accountability meeting recently. Um we really encourage the community to come in and participate in that. And it's not just parents and faculty and kids. It's everybody is welcome. Um we talked a lot about the strategic plan, about kids being involved, and we also talked about um see what else. Oh, our curriculum and how it's doing. Um the next thing is is we were supposed to have a board seats meeting this month, but it was canceled unfortunately. And then let's see what was the other thing. Yes, button. Um in regards to the audit, I will say that the things that he pointed out that we need to implement and to put into place, it's
079nice to know that those things are already happening. Um so it's kind of these are the things that you need to do, but you're already doing it now, so that was that was nice to hear. Um as far as our teaching staff, we are nearing end of the school year, so I know everybody's super excited and we're almost there, and I just appreciate all the work they put in leading up to testing and all those end-of-year activities. Um lastly, with the pool, I think it would be nice if we put together some type of committee with staff, community, all those interested parties to come up with a plan to better manage the pool or opportunities that we have to better utilize that asset. Um whether it be birthday parties, open swim, or even bringing curriculum
080to our students so that it's something that benefits our students directly. Um I think that would be something good to have put together. >> Yeah, even if we didn't get somebody surfing, it'd be unproductive. Yeah. I agree. >> All right, if there's nothing else, we will adjourn at 7:43 p.m. >> The pool is closed. >> I'm just going to get my phone. >> Oh, yeah. >> I'm sorry. >> Bye. >> Good night.