>> Okay. Do I have a script? Your email that? Now? just
need to find it. Let me if I can't find it.
So this 11/17/2025, regular meeting of 04:00:03PM. Misty John Cunningham submitted a written request to attend this afternoon's meeting virtually due to medical conflict. And he's attending this
afternoon's meeting from Springfield, Virginia. All those in favor of approving Saint Johns County's request. Okay. That's unanimous for those at the table. Miss Saint
John cutting. Please check your audio and video. >> I'm here. Can you guys hear be? >> Okay. We hear you. It's
very soft. So we're going trying to get louder. You try again.
>> can you got yes, have be. Okay. Thank you, Madam thank you so much. >> Okay. We'll now move forward with approving the minutes from the 7th
9/15/2025, Audit Committee meeting. Okay. Moves by Mr. Moon that the audit committee approved the minutes from the 9/15/2025, meeting with Lee
for the clerk to correct any for Manning technical or grammatical errors? Do I have a second and the net. Okay. All those in favor of
approving the minutes. Unanimous for everyone here. So now we will be moving on to 1.0. AG engagement status
updates. So I call on Miss Daniel more for item. 1.0 3. >> Thank you. Good afternoon. I will be providing ad internal audit status updates. Happy to report that our
audits are all on schedule to be completed. First we have the local school activity finds audit, including the continuous monitoring for fy. 25 Brittany, we'll be
presenting that report tonight that is completed. We have the health care claims management audit, which also will be discussed tonight. School in
office The audit is currently an execution phase and we will prevent later on in Fy. 26. We have our continuous monitoring for fy. 26, we started Korda
won. We've done 15 site visits and also 3 of the gate receipts, procedure at 3 schools. We also have proud to
announce that we will be receiving a peer review in January that week of January. 26 to the 30th. We'll be having external auditors come in and make sure that we are
following our auditing standards. As it relates to other lady duties. But good bill, we're currently in our risk assessment process where
we're doing interviews, benchmarking surveys and collecting final financial indicators on our potential fy 27 topics. We also have our
front waste and Curry's Winchester will be about in just a second as well as to follow up the as of October 31st. Follow-up reporting Pierre will be percent and our
January audit committee meeting. As well. We have our final topic, which is outreach and Education O A T recently did a training with the Office
of the Comptroller back in October, we're over 100 CP as ploy ease. Attend it. And we also have an upcoming trainee with procurement Services which will be on January. The
9th. So we're looking forward to that. get a big 3. Wonderful. Thank you as more. Any questions. Moving forward
with item 1.0 4, 0, AG internal inquiry updates come on, General Co for an update. >> Good afternoon and thank you so much for attending the audit committee today. Before
we get into it, I also want to acknowledge my full auditors team here so that that you can see who is actually behind putting all the reports
together with that. If the club can put up the incur document. The one after that
is AG internal in Korea thinks yes, thank you. So this is presentation format that that is a relatively new on a regular basis. I bring to the
audit committee about the numbers off, you know, cases that we receive per seems per categories right? So here we can say we can see that we have conflict of interest
documentation, eccentric central. But I know that that sometimes we may not be able to get a better sense of what those numbers mean. So from
one forward, I have incorporated a column called report a ball. So you May ask me what report means when you look. >> Adam, under that.
>> Reportable categories could mean that that maybe credibility off runways and abuse or maybe there are situations voiding school board or leadership team
members or some of the situations involving systemic changes that we may need to provide to the organization as a whole or necessary
situations. So we added that column off reportable for each of the fiscal year and then we provide a percentage off hay
out of how many cases of total situations that we re see. What is the percentage of this Both cases so that you can see the trend coming from 4% in
fiscal year. 22 and 2 now in fiscal year, 26, which is still ongoing. We are at 14%. So you can see that the percentage off reportable cases will on the rise. And to
me, this is a good story to tell that we're trying we move some kind of East shoes before it becomes an issue. Our employees out constituency are
very proactively coming forward to us for situations that may need to take a look at. So with that, I would like
the time back to the chair and to see if there any questions. Yes, could you talk a little bit about the it seems like
the use of assets category has spiked up a little bit. Could you talk about what kinds of things years you're seeing in there? If you're concerned about that? >> Thank you. And you
>> So Fcps we are may need, you know that the major expenditures is payroll. So contributing out time for the success of students right? So
when we talked use of access a lot of the time he's about how instead like a proper way to document, you know, Fcps employees are spending time
working on Fcps contract to work. So we sometimes may get situations to say, hey, starting indeed, roll may not
be working by certain time. And after a certain time. So a neat Heinrich related. So that's how we define intangible assets, so to
speak, the most of them. >> Are you concerned about what you've seen so far this year? Because like I said, the numbers do seem to be up for The 1st quarter. >> No, I don't see like
notable concern. And that for me is more like an education. And he's also great, too. Let everyone know that that expecially our employees, someone he's watching or like
our employees may be watching each other because we're not in the 200 schools, right? So we really could not tell. Is it that you need do working on not, but I'm really great that that we have built up this,
you know, eyes and ears in the schools and people know this method to connect with us. If they see, you know, ref, like.
So I have a question this as well. So first of all, let me thank you your colleagues for >> pulling together this document. This is something that came from a quest, I believe, from Mr. Moon that we
have a better sense of, you know how to read it. This chart right? And so these separate columns are helpful. a question for you is this is
also something Mr. Men and I were talking about the other day is. Looking at this. How?
Do you typically how how would audit typically view this in relation to the success of an audit office? Right? If if the number of requests are going up, that means the community
extensively has more trust right in the system to be able to report. But obviously, if it goes down, then that's also a positive for the system. So is there any correlation
between effectiveness of the office and this? >> This is a great question, Ryan. I mean, I have try to like think a little bit more about that, too, right when we try to understand what it is
is kind of something that really out of the control by the office of Auditor General is not something that the school board approved for a each year less have like 30
cases that always he would be looking at is kind of like crystal ball that I could not see how many will be coming in from my perspective, I always looked at it from a holistic
perspective. So to me, a successful auditor general office and which, by the way, if I can market that a little bit will be presenting our annual report in the January
5th meeting. So you can see more about our achievement, kind of what we to our south. From my perspective, I really see it as a holy state. A poll. Graham that we do a lot
of outreach and education, right? We have to making sure employees and constitute ones is aware of this math set to report and then to let them know kind of like types of
case received. So. Part of like transparency in that we could not tell a lot about the details because he's privileged and is confidential. But I do want to
raise awareness from like our staff members and constituents so that we know that we take it very, very seriously. And we looked at each case very seriously. If you asked my
team for all this, how many cases we have 28 so far for this fiscal year, we looked at each one of them with fidelity diligence. So I don't know if
I have answer your question, Ryan, but to me, I think we have to looked at all the aspects AG work as a whole.
Okay. Seeing no further questions. I think we can move on to item 1.0, 0, 5, 5, 25. >> 43 in quarter 4 continuous monitoring results. 5.25 local
school activity, funds audit. So for that, I call on this Britney Hamilton, thank you, Ryan. >> So good afternoon. This summary. So 4.1 is the summary
outlining away G's Fy. 25 continues monitoring 4 Q 3. Thank you for results. These procedures were conducted in the line in line with the audit plan approved by the
school board and follows the generally accepted government auditing standards for this audit. A way utilize technology based on it techniques to analyze
patterns, trends in select transactions for testing our quarterly testing and quarterly monitoring covers appropriate and not appropriate funds. And we
leverage than on appropriate transaction data establish the taste, the testing data or testing basis for the comprehensive annual lsa up on it. Therefore, all non
appropriate exceptions identified are integrated in report it with our fly. 25 LSE up on a report. So at the end of an sorry, the end of Page
one 2 with a snapshot of the activity across 202 sites, 103 sites just over have had no exceptions noted at all. The 5
sites had exceptions in 3 or fewer areas. And 44 Seitz did not appear in transaction sample for this period. The exceptions were noted. We're
generally in standard areas and we did not identify any material concerns that are significant for individual sites. I will not dive deep
into each exception. However, I will highlight one a typical CE instance related to change Ponds, which identified an instance where a change was created for its single
sporting event exceeded optional operational needs and critically was not reconcile. Separately from the event's overall sales. So all the non appropriate find findings were
in court rated in the final LSE up on a report which will discuss next. And with that out. Turn it over to Ryan. Any
questions on local school activities are now on the previous >> The continuous miner report. Yes, Mister McDaniel. So you mentioned that there was one anomalous.
>> So just a little it's not typical. Just a little different, but yes, change funds and uses a sporting event. Yes, one sporting
event. Can you say which one? Yes. 4, this particular report, we actually looked at
from a systematic division y process and then we identify, you know, one particular school that they are change funnies more than what the other school normally keep. I
think we can. We can mention it here. Is it? A A few secondary school and then we have beating contact with their schools just to making
sure they all wear off the regular process of how to keep it. And then we will also look at it on a continuous basis right to ensure that that they have fixed issue going
forward. I want to say $10800, 850. 50 out of do correct? Yes. >> So not so maybe I think we
should. I would like to defer this question maybe to out comptroller's office because C mice here. So I think she may be able to provide the board members a little bit background about what do we
normally see writing to change fund? >> So for change funds is just a couple $100 that we keep in the change fun. But they
should not be commingling it with the sales or activities and that are being received for that event. You have to keep it separate and reconcile
those things. Separately. Anything else on the first report, OK, moving on to local school activities. Okay.
>> So for 4.2 fy, 25 local school activity. Fun Activity report audit report. So let's start with the objective, the objective of this performance audit work to determine if
cash balances are fairly stated to assess compliance with applicable regulations and policies and determine if internal controls are adequate in functioning as intended and to determine of transactions
are reasonable and do not appear fraudulent. So through a combination of continuous monitoring site visits and surprise inspections, we completed the scope of this
engagement. And so as a result, us 2 things AG was able to determine that cash balances are fairly stated and that transactions across the division appear to be
reasonable and did not appear to be fraudulent. We did, however, identify 3 specific observations related to internal controls and compliance. And I will walk
through those now. So for observation, number in our detailed testing across 202 sites, we found that 129 sites which is well over half, had
no exceptions noted, 73 exceptions. Will 73 sites have exceptions in 3 or fewer areas? And in the graph on Page 9. It will show a breakdown of compliance in the
3 areas. Sorry, could you go to Page 9 for me?
All right. So we've included the full tables, but I want to highlight the main themes as lsa up accounting procedures, which on Page 9 in the area is
most frequent exceptions are related to internal controls over documentation, specifically insuring bank reconciliations are properly signed and Dayton and timely
manner. Insurance fund account balances are positive at year end. So then we have be which is cash disbursements on Page 10 Cash is first and show the
highest level of compliance nearly all sites fully compliant exceptions. Here are scattered across ensuring purchases are preapproved Czechs have dual signatures
and all transactions had sufficient supporting documentation. And then if we go down to Page 11, we have cash receipts. This areas
where we noted on several control breakdowns related to cash handling activity, gate procedures. We'll start We found instances where all individuals are responsible
for both recording cells. Sorry, one individual was responsible for both recording sales and collecting cash. And where manual counting was done instead of using control
system like ticks. Timeliness, there were issues with timely deposit into the bank after the financial technician receive the funds and also the timely receipt. This is where
funds were not turn him over to the financial technician from teachers or sponsors in a timely manner. And so we have changed funds as well as mentioned and can see as Mara,
we saw issues were changed. Funds were commenting. Koch mingled with sales receipts which we spoke about earlier. All these exceptions occurred at a individual site level and
did not ultimately impact the site's lsa out balance and all noted exceptions and the necessary recommendations have been already communicate to the individual sites following
the testing, which allows for corrective actions, actions. And so AG concluded that these exceptions when aggregated did not have a material effect on
the overall statement or cash counts. So cash receipts and disbursements for the school division. And so moving down to observation. Number 2 on Page 11. This is cash
receipts, internal control environment. This observation addresses the process when teachers sponsors collect funds our primary focus on
this area. It has 3 areas. So number one to control, the Fs one 31 deposit are not premium bird and our main are not maintain in numerical
sequence. This creates a risk that cash receipts could be possibly lost, stolen or unrecorded. And then number 2, the lack of independent verification will document
documentation is provided to the financial technician. But the process does not allow for sufficient or independent verification or accurate reconciliation of documents taste provided to the FT,
which also heightens the exposure of misappropriation. So then the 3rd one was the tracking mechanism. So because of the financial technician does not maintain a law or
system or a schedule of activities that she could be should be collecting funds. It cannot readily determine whether any collections are missing. So while this did not
have a material effect, the risks related to cash collections are not fully addressed. AG recommends in that they focus on strengthening the process,
updating controls, promoting the use of automated systems like MSP and exploring the transition to preen humber receipt books or electronic receipt system better
traceability. And so we have observation number 3 on Page 13. Which is the positive day control weaknesses and great Plains. This system allows for
financial technicians to record deposits using dates from our prior accounting period, including dates a month. Pryor without triggering any alerts.
Restrictions are compensating controls. This capability is necessary to meet leadership's operational and reporting requirements. But it's unrestricted nature poses risk. But when a deposit entry
is delayed, are backdated. The recorded cash balance can be misstated. The deposit can clear in the wrong accounting period. And it creates opportunity for caught for funds to be concealed or
misappropriated without timely detection. So while this observation that hot did not have material effects, the risks related to entering deposits using of the pot. A backdated transaction date are
not entirely addressed by the current control activities. AG recommends that management implements controls either a system based restriction or flag within great Plains for
backdating in trees or policy requirements with mandatory documented justification or supervisor approval for updated for a backdated injuries. In closing, cash
balances are fairly stated. The transactions appear reasonable. Our observations focus more on strengthening controls to mitigate identify,
compliance and process risk and particularly areas in cash received Great Plains, deposit entry process. And ad appreciates the cooperation
and courtesies extended to our staff by financial services, principles program managers, finances, technicians and finance assistance. And to
keep going okay. So I'll go over to which is 4.3 year. Your comparison. This comparison helps our office
understand we're controls, are improving and where we should sustain focus. And remember that local school funds involved funds. It's usually
from the cells and donations across our 202 sites. So I'll start with Page 4. Which is lsa up accounting procedures. This area includes
reconciliations procurement car controls and fund account balances. So I'll start with bank reconciliations this category. Saw a substantial
reduction moving from 49 sites in Fy 29 down to 32 in Fy 25. The fund account exceptions. This shows the dramatic
positive trend. The number of sites with exceptions for deficit balances at year end decrease from 57 in Fy. 23 to 21 and fy. 25. And non bank
this category, which primarily tracks procurement card compliance. It's remain stable. Safeguarding of
assets. It did go up by 4 sites in Fy 25. Timely payments which are late payments to vendors drop from
2 fy. 24 0 and fy. 25. And so if we can go down to page 5 for cash, disbursements, we have authorized signatures. This exception is for
improper. Dual signatures are co-signing by Paty it went down to 2 sites in Fy 25. Competitive bidding in sales
tax. These categories remain low across all 3 years. Incorrect account. It increased by 2. In Fy 25 purchasing process and timely
payments. These are the most frequent. exceptions, but both have declined by 6 sites in 3 sites respectively in Fy 25.
Timely payments exception saw a large fluctuation dropping from 10 in Fy. 24 to 3 in Fy 25. And then lastly on Page 6,
we have cash receipts. To be gay receives this testing category is new is started in Fy. 24. We saw 6 exceptions that year, but it has dropped
to 3 this last physical year was just fy. 25 change funding. Timely received these cats worries are small, but the risks are there, timely
deposit. We saw an increase of 5 and fy 25 and timely receipt to Chris decreases significantly dropping from 7
in Fy. 24 on someone Fy 25. So in conclusion, the data indicates abstain, compliance and control effectiveness across lsa up accounting procedures and cash
disbursements. move it back over. Thank you. This is a lot to any questions. Yes, and it.
My overall question is whether there's any policy about. >> How much these balances should be in the different schools in relation to the annual amount of receipts and
disbursements. And the reasons I'm asking is because when you when you look at the detail report, you did on all the different schools and it shows how much they took in for receipts and how much they took in for Dispersement. It looks like overall for the
year they take in about as much as they expend. So then you've got all these balances there. And I understand there's some seasonality. I mean, school starts up. You've got expenses that come in and
the money is not going to come in right away. So you've got to have some money that through the year. I had a hard time figuring out what the relationship was between what the balance was at the school
is holding and what was going out because the most overall, it looks like it's about half a year's worth that they start out with as it may be. That's the policy. But in some cases it was, you know, a lot more
than that. In some cases, it was a lot less, unlike say, even even between like the size of the schools, like, if you look at. Like South County and Thomas Jefferson, those
are 2 schools which and may be incorrect about this. I think they both have about 2000 enrolled students, but TJ has a huge balance compared to you know, they start out the year
with $1200. South County starts at with 350,000. Now I had a kid that went to TJ. There's a ton of clubs there. And, you know, different academic competitions are makes sense that it's more
that they're holding onto. But does it have to be that much more like you need to have that much money sitting in the schools or could those balances be drawn down somehow
to kind of remove the temptation or relieve the burden on parents for fees. I just didn't know if those a policy on that. Thank you. Name it. If I may respond and
he's a great question. I if I understand you correctly, is that? >> When you looked at the trend, right, we have to balance from last the end of last. >> School year and then you have the EU and the outright
and then you have to balance for this year. You may see a lot fluctuation seems to be the same amount in and out. And how about the use of? >> Once. The purpose of audit,
we focus on the 3 particular area accounting procedure catch receiving cash, disbursements. So we don't quite looked at it from that So I would like to we have our
CFO here and I'll comptroller. So if I may, he for to you about the policy, that would be great. Thank you. Okay. So the way it works for the
schools is. These are a local school activity fund account. So each school has. >> Different segments within the local school activity funds. They have various
accounts. And within those accounts, they key balances. Many of the balances that are kept. High schools are going to be between 7, $800,000 to
1.2 million middle schools. Less than that half a million. And then you have the of the men. She which is a couple 100,000. So that counts that are kept a lot of it is the
activities, the clubs that generate the money. They're kept in the accounts and held and can only be spent for the purposes of what they were
raised for. So. If generates dollars, then that money has to sit there till that money is spent. So you have a lot of carryover balances. >> From year to year for for that restriction for policies
because whenever you generate, that's what it has to be spent. Then you T J question TJ has a lot of money and a lot of money is their duty primarily. It's a lot of
scholarship money. And scholarship funds have to they get the scholarship money. They manage their own scholarship funds and they sit there within this scholarship
accounts. But they have to sit there and be used for the intended purpose of that scholarship. So then that school has a lot of that. And they also have a lot of clubs and activities. As you mentioned. And the money also
has to sit there and gets carried over from year to year because it can only be used for that purpose. And then they have a lot of money that has been donated to them to be
used for science equipment. Those kind of things and that also has to sit there for that purpose. But it can't be used for anything else. And we do
monitor very carefully. Okay. Thanks so so. The and that's kind of the way thought it worked. But it So there's no overall policy like you should only have. >> X number of months of.
think that the internal audit. Okay. Thank you. >> All right. Thanks. So I first got to get a good time to say John Cutting followed by Mr. McDaniel. Saint John
coming. >> Thank you. I don't know if you guys can hear me. We can hear. Perfect. I'm just going
you know, ask a question when you went through all of all of this. And I mean, it's good to see that there's improvement. But my question in terms of where you found discrepancies or where you found problems,
if you could list for us, you know how many would elementary schools, middle secondaries and high schools? And how many of those discrepancies
resulted of as of somebody that was a new person in that school? I know I've shared several times that there's
such a huge turnover elementary schools for administrative assistants who also have to do the finance. And there seem to always be behind the power curve terms of wanting everything that has to be done. So I think that
could help in terms of making decisions. So that's what some information that I like to see. To know. What schools
have the issues. Was it elementary middle high schools? And if the finance technicians were new employees. So I think those 2
things are things that we should look at. My Sharon was. it's a question as much as it
is a one wondering because some of the schools are getting dinged for not getting receipts time. Or what's happening. But sometimes it's
not school personnel collecting. The money. You know, it's the drama booster person. It's a sports booster person and they're kind of having to depend on a
volunteer to bring that to them. So it's wondering about those processes. >> Thank you, Saint Johns
County. And then this is great questions. So let me try to respond to And I likely need to call a friend from the comptroller's office, all the
CFO to support. So the first question about an analysis by the school level, we can certainly do that. But I think we may also want to put into
perspective to that high school and middle school. They will have more. Chun sections, right compared to an elementary school levels. So
it may not be. Fairly compare across because of all could be very different. So that's that's one thought. And that's why we haven't done it. And we can certainly include that
going forward in the comparison power point so that the audit comedian school board and constituents can see that. And the second question
about financial tech nation, all financial assistance in elementary school that who may be new to the school environment or they may not
have one for a long time from our office perspective, we do not quite have to information to keep track of that. But I do know that that the comptroller office, they do
keep track offline. One, you are not new and has a modified for us. We try to conduct a turn over audit like meaning a
deep dive school audits when there is a change in principle or a fine is technician all finance the system. And you will actually hear one of them, which is the West
Springfield High School. We're going to present to the audit committee next about the observations that we made. So
I think with that maybe I can the you know, to control office and see if CMA has any comments to add. >> And and I didn't want to limit just to elementary like
of the finance technician person is new at any of those schools. Yeah, that's it because it's a lot is a lot
and all the codes and all the different things look, if you've been in the system for a while, you get it. But if you haven't, there's more probability for perhaps
unintended error. >> Definitely miss year that we include a middle school and high school finance technician change in our selection as well. So thank you adding
that. Okay. So >> 40 around 40 of the >> Finance Texan, a A's at the school sites are new. So that's basically they've been
here less than a year. The learning curve is really steep. gives a higher tendency of making mistakes. We see a
lot of mistakes happening and then turnover is at the elementary school level because they're doing the a job and the finance job. >> And then that in
combination with being new and learning, there's we we tend to see a lot of the problems in that area. I can tell you that if you look at the
graphics that you're seeing, you're seeing that the trend in a lot of the categories is down because we're doing better because we're trying to
emphasize greater review, a bank reconciliations a lot of trainings. We have a lot of videos out there. We have I think approximate 30 videos now. So that not only do we
supplement the training with. You know, in person, attendance, one do ones that the school sites but also videos that you can watch and get trained. So we're hoping
in combination of all of that, you'll see the bar charts trending downward and IM improving in the training. >> And part of the reason that
I bring this up is that some of the situations are not nefarious situations. It's just that it's new. It's I don't which is a good thing. It's a good thing that it's not anyone that's trying to
siphon off money siphon off money. Great. Thank Thank you. >> Over Mr. McDaniel estimate.
I wanted to kind of tease off of something that brought up in just forgive me for my ignorance here. But the local school activity funds. Where
is that? can you just can staff go over where exactly that money comes from? I think I have an understanding of it. But just to be clear. Where we collect the different methods
of collecting. The school activity funds. ticket sales and >> maybe I can start and then comptroller's office would
like to add to that. Clark, if you don't mind to pull the Powell point up yes, yes, put on hold one doubt. Like under
sect. Yes, yes. So here is to sources of where the local school activity fun is coming from fees and dues sales and donations. Sima, anything else
you would like to add? >> I think covers it. Fees, donations clubs. A lot of the Atlantic. Funds that are
raised. So it's a fee-based fund. For the most part. >> I do not have the PO portion of this three-ball levels. Yeah.
>> So here's I'm going with this. And I think it was kind of. Closely mentioned. But if if you tally up high school
plus middle school plus elementary as 25 million dollars sitting on. That's a lot of cash to be sitting on. And I kind of compare it to a fee-based funds, like, for
example, are for nutritional services, which I know requires on 3 months of a cash balance. Are there any policy controls in place to tell schools at the local school
level that you can't just sit on cash. >> yes, thank you. I I think I would need to do for, you
know, to the comptroller's office. but just to clarify, Kyle, you mention include cash and checks to write for. But but like, you know, looking fund, right. So I mean, and I
think this was brought up. So we've got if you go the high school level here in this report. >> You got Langley or excuse me, Thomas Jefferson one point on which I kind of get TJ is a
little. Exceptional and air quotes. But our lowest won by a quick scan. Is 200,000 give or take one? 95? I think at
Mount Vernon and then it goes all the way up to 890,000 at West Springfield, TJX Side. That's a big. Delta of of funding that these local
school funds are sitting on. So. I guess my question is, if the funding isn't being used for kids. And we're not giving
direction on how the funding has to be uses no policy. is no guidance who's making a decision as to how to use those funds. Because 26 million dollars sitting in a bank account. It's not being
spent on kids. Doesn't really matter. So those off question, I get that. But that is really jumped out at me. Yeah, I I would.
>> Need to defer to management, you know, to response to that. But I do know that that like Sima, explain that those funds were collected for a specific purpose and the purpose have
to be met in order for us to spend it. But I want to see and I understand encumber versus on and convert. I totally get that. But >> I really want to make sure the money that that the kids
and the families, the parents in the community is paying to go to all of our great activities. That's actually being spent. >> I'm going to just interject a couple examples before
seeing step in day. One example, a member meeting with the Mount Vernon High School band boosters who take I think they said 18 years to raise enough money to finally buy
their band uniforms. So some of these schools, they collect money every year. They put it in an account because they don't have enough in any one year to make that full purchase. So it begins to add
up. And it's not that they're not intending to spend it on. Items, but it takes a certain amount of money to purchase band uniforms. And they were, of course, sharing that
because it's doesn't take that long at other schools to raise money to purchase new band uniforms. Rights was more around how we equitably resource schools around the division. But I think a number
of these types of funds are very similar to that where there. Collecting money until they have enough to pay for their item because these are
generally a student body initiative funds. But I'm gonna let them respond in more detail. But that's a sort of a concrete example. As I was listening to this, that it's not as if this money is just going to sit there. It's
actually intended to be there till they can make their purchase. >> I agree. That's a great example. So I you large cash and it's a cash strapped school system. So we're just
want to make sure that, you know, we're doing need to do the next question. I have the next line of questioning. So we're talking about cash cash
box versus in person point sale systems. there's been some struggles against reconciliation, the cash. There was a mention of I of the POS system that we're
talking about. Do we have any guidance division-wide on whether or not schools have to use? A certain ticket sale or transaction system. At the
school level. If that makes sense. >> Yes, so we have guidance that schools. Are you supposed to use ticks for their ticket
sales and to conceal collections and based on what we try to take, what audit finds and make those improvements and what we're trying to add now is better
equipment. So that when when you do that, takes to get collections. We can collect things that people actually want to pay with like Apple pay Google Pay and take in
other sources of payment to reduce the amount of cash that gets taken. so we are trying to make an enhancement and we are trying to improve the hole
ticket collection. >> Mr. Thank you, Mr. Chairman. When I first.
Wrecked a seaport. 73 science out of 202 into I'm a person stood out. On the other hand,
we're talking about 45 million dollars for Bill Clinton could Fund the Scruff and that's a lot of money. A lot of transactions. People are with
the new people coming in. could be some oversight mistakes. And is on the way? >> But is a 73 out of 2 of 2?
We should be on mom, the about the war. So. >> Thank you for raising that. So he's 73 sites out of the total that we looked at may
have one or 2 exceptions right? So I think I mean, I think we all human beings, right? So there may be maybe exceptions that that that that someone just maybe forget to
do something. >> So what we try to mention is that we did not see a theme of the shoe right rise to the level. This report very
significant sense that that this the external financial audit are also relies on this report to give their financial opinion on the fcps system as
a whole. So internal auditors meeting went always, you looked at things. We felt every single thing we report to the audit committee. Even one exceptions right? So out of this 70 plus schools, even
though we found exceptions, which we reported upon upon all those bar chart. So we reported about what they are, the nature of what they are.
But what we're trying to say that that when we accumulate all the exceptions to get that it did not meet the threshhold of material misstatements when
the external financial auditors looked at it. But we half the due diligence to report. To you all as audit committee members. So we kind
of have to laundry list of everything is reported here. So sing and again, we are seeing that it is not significant in a sense to a financial auditors. Is not
material misstatements to a financial statement, but from a country went viral, meaning checks and balances standpoint, we can do better. So that's why we share with the audit committee about
trends off the nature of the exceptional. You talked about threshold by next winter. Already dollars. >> To do with substance want substantial on run. What what? What is that? What's that?
What's threshold? >> So I haven't been doing acts or no financial audit for a long time, even though I'm a CPA, I may need to for that to our comptroller because they
work with charity bike or at the most to answer that technical question. The more you want to. What external
auditors look like. Look at different than AG looks that >> AG will look at and bring where well, there was one bank reconciliation that was unsigned. Bring it to your
attention. But from a external audit perspective, if there's one bank reconciliation that's not signed and dated to them, that's not material unless
they see. 2030, seconds reconciliations consistently not signed and dated or 20 in a row not signed out of 200 schools. That would be
material and significant. So there's a threshold they look at. And a lot of it is based on samples that they pull and they review these. But if it's
just one or 2 here and there, that's not material because it will not change your financial statement dollars in a significant that's
>> what I want hear letter. comes issue a warrant with One percent, 10%, and a numbers person. Okay.
>> So I would say. 15 to 20% is material. 52, that's a lot >> that better be to year. Yes. So that becomes material.
then your figures and numbers can change in how you're presenting your revenue. >> Your expenditures to the users or those that look at the financial statements. So
let play devil's advocate. >> You said 15%. 10% to And percent may not It depends on
what I guess. It depends on what they're looking 10 1%, maybe an observation to you. So, for example, it may not be a material misstatement enough to cite you. For doing
something wrong, but it may be enough to give you an observation observation or a warning to say there's some control issues here that need to get looked at or or something going to be.
>> 45 million amount of money. 10% 4.5 million. A time out of money too. Well, okay. So >> I think in I think it
changes depending on. Higher stating it. So, for example. I can give you an example. So at year end when we do. Funds and transactions, we have to make
sure things post to the correct fiscal year. I cannot be off more than $30,000 for the school operating fund. So you can cut, you know, school
operating fund is 4 billion dollars. So and when they're looking at revenue being off, I cannot be off more than $30,000. If I am in that case,
they would count that is material. So the percent of that is a lot smaller. But in that 10, it would be material but signing and dating a bank
reconciliation. They may go as much as like I told you 15%. And it still wouldn't be material. So I have a couple other questions.
>> So did this to get a look. What's going to funds. >> Or all of the funds. One 70
for score. All right. I get that wrong. >> So if I may just going a little bit more details, the methodology of how we do it is
that every quarter we looked at it from the continuous monitoring perspective, meaning that we monitor all data by setting up certain
scripts like, like rest, lax. We cannot what all my auditors are here. So if I tell you that we looked at every transactions that I'm not, I was according to migration is how you look at all 40. Yes,
so we have to really think about some smarter way, right to looked at the population. So we develop some scripts about like Redflex, meaning
that if you it light, I don't have a dollar I don't have that in front of me now. Their scripts and then to see where the town sections May may have
of challenges on and then we will request the documents from the site. After the continuous monitoring and then they was sent us to documents
and then we per fall. The detail review in the office. And if we found a oh, my goodness, it may lead to some other issues. Then we will go to do site visit at the
school. So you may not the to question any document from. >> Some of those scores. One many scores. >> If they do not have flags
from the continuous monitoring except if I may say that except and I'm trying to go through audit program, you might bring now except when they're our year-end year-end balance check. And I'm going
to be a little bit more accounting auditing related because we at the end of today, we are ascertaining the balance as of June, 30th of 25 right? So we have to check the
bang reconciliation as off that day. So there are certain end it or really on every single site. Right? Like to come from the balance. He's
right. But throughout the year that we would develop some scripts like some like methodology off. Hey, here are the 10 things we are checking based upon our experience. And
then we looked at the entire population during that quarter. And then we truly doubt on those that may be a problematic transactions.
Okay. So ICU entire team by >> You know, Tim. Percent, a viewer time gets people. We don't. For you entitled to.
>> So I can say that that we have Britney and K. >> They are sort of school auditors. >> So they will also work on some things to put them to
focus on school audits. And I do school audits to so you may see me in the gay receipt because I like to see if people are doing lights like paying. So I will wear my cap
and then we on this on the receipt night, too. So we all contribute. But we have 2 staff members focusing on school audits. >> And again, as numbers person. If I want know if I'm
if I ask you what percentage your time people did and this is that would you say to place par par about 25% of time.
>> To this and also the business process audits, which we have one kind of like coming up next, like meaning when their turnover, Marcia mention, like there are changes in principle or
finance finance assist we visit them at the end of today for schools out bread and butter, right? So we really take it very, very seriously. And we devote like you said
about 2025% resources on. >> When last from minute. I just want to go back to one comment that was made about the timeliness of deposits,
not think that addressed. I think when the money goes into the schools, it was a question about the volunteers and how do you handle the volunteers? But I think a volunteers that generally are handling money.
They're going to. Parent organizations. I thought that. If a volunteer handled school money, you still had a staff person who is really
responsible for it. So if they chose to, let's say your book sales. So it's an elementary school. They chose to have a parent, help them get the money. There is still a school person who was responsible for
getting that and making sure pause and timely manner is that. So if I may do for, you know, to, you know, Comptroller Sima, you want to
respond to that? Yes, it is a school activity and the funds are raised. Then the school person is responsible.
>> Okay, great. Well, seeing no further questions. We will move on to the business press West Springfield, High School. >> And I will call. miss more
ever too. Thank you, Ryan. I will be providing you with the result of business process audit that we conducted at West Springfield, High School. >> And like estimate earlier, this audit is more of a deeper
dive at the school level. We're looking at not appropriated and appropriated transactions and processes. And so these are at is that we in their for be paid to beast
to get started, whether it be a change of finance. Second principle based on any front with abuse inquiries that we received as well as a result of continuous monitoring. And
in this particular situation, this was the result of continuous monitoring where we say we needed to go in and look dive deeper. So we as a result of this audit we had to findings one high-risk finding
which was related to timely entry. So we had 7 a of those deposit slips that were not enter into great Plains in a timely manner. That the pause that made it to the bank in a
timely manner. However, the finest take was not entering into the system in a timely manner. That I finding management could hurt. And we receive management responses
from the principal in the rest being that it was a high risk finding. The second finding with a low risk finding which is related to the purchasing
process. And these we had cash. Disbursements were mate outside of the person the first. What with Mitt may prior to getting the purchase order approved? So those are
the 2 findings that we have for west springfield business process audit. Great. Thank you. >> Mr. Men yet your thing is
still up. Okay. Great about Looks like we can move onward to 1.0, 0, 7, health care claims management it over to
money. >> So office has recently conducted a performance audit of health care. Health care claims management, the scope and objectives. A listed on
phase 2 of this report. The results of that will not be shared in a public meeting due to the exemption for to on
base too. >> Colleagues will have an opportunity to discuss. This includes meeting. Seeing no
further questions on public meeting is now ended and >> 2 Ish. And the board will now meet in closed session. audit committee will now make
a motion to go into close meeting to discuss personnel matters. Pursuant to Section 2.2, 3, 7, 11, a one, the code of Virginia to consult with legal counsel regarding specific matters requiring the
provision of legal advice by such council pursuant to Section 2.2, 37 11, a 7, a 8 and a 29 of the code of Virginia, specifically contracts and personnel matters. Do I have a motion
Mister Mound of a second, Mr. McDaniel, all those in favor. Everyone at the table. Is unanimous. Thank you. Mice
that Marcia do want to vote to go into closed with us. She is away from the table. Thank
you.