okay go ahead and start the meeting uh Joyce if you do the roll call please Dave Tally here LeAndre camel Alysa doin Michael Dixon mark bmas
Kathleen wiel here Frank bobier here we have Quorum okay and we'll do introductions and we'll start as always with Patricia please good morning Patricia Morales from the office of general counsel Heather Fredrick Chief Financial
Officer Annette pinck accounting director Frank barbri audit Committee Member aor introductions okay Bob Bob Bliss office of Inspector General randos ig's office
Dave Tally audit Teresa Michael Inspector General Carrie High Council of Inspector General Joyce Edison inspector General's office Christina Daniels inspector General's office Tracy Shear inspector General's office
LeAndre camel audit Shantel nlls RSM right thank you okay Terry do we have any dels deletions or additions to the agenda no we don't okay if that's the case I'll accept motion to approve the agenda so
move there's a motion is there a second any questions all in favor all opposed passed unanimously take a minute and review the minutes of the January 17th uh 20125 uh meeting and after you've had a
chance to review it I'll accept a motion to approve you Andre motion to approve there a second all in favor all opposed pass unanimous ly public comments hearing none now we'll go to if
someone's talking we can't hear anything it's on mute can you hear me now yes thank you you're welcome okay now we'll go to Terry and the Inspector General update Terry all right good morning everybody I
appreciate everybody being here today um just going to go over a little bit of of what we have going on in the ig's office um first up um we have both of our peer review and our accreditation coming up
uh the peer review will be in March I believe and then April or is it April than March April April is the peer review March is the accreditation uh next month we will have uh or next uh meeting the board will be
voting on my evaluation and other than that we are pretty much on track with everything else going on in the office there's no great shakeups knock on wood um and no issues that I'm aware of
okay uh next item is the uh internal funds audit who's going to do that Randy morning uh the internal funds audit uh progress is you know on schedule as of of uh yesterday we have completed the
field workk for 173 out of the 177 schools for the remaining four schools of field work uh is in progress so it should be completed you know by uh early next week for all the field work and uh we will work on you know the remaining
schools at draft reports to the school principles for response and also to compile the uh districtwide measurement letter for the CFO office uh response so hopefully we we will get all the responses by the end of March so that we
can present the final report to this committee for review and approve in April okay any questions or Randy let the records reflect that Alyssa dwan has just joined us virtually okay next uh we'll have uh the
audit of the educational facility safety inspection program going to good morning and I will be presenting the audit of the education facilities safeties inspections program the uh the objectives of this
program was to uh assess the adequacy and the procedures in prioritizing and correcting the safety deficiencies and Hazards identified by the annual safety inspections as well as the adequacy of Correction actions taken to mitigate and minimize safety issues at the district
facilities and lastly determine progress in completing repairs from year to year just a little bit of background um for the Florida Statutes it is required that an annual safety inspection of all district facilities be performed by a
safety inspector certified by the State Fire Marshall and to comply with this school board policy 2.31 was adopted in which the board would provide two annual inspections of all facilities within the
district these inspections are conducted by building code Services the two inspections that are performed the first one is an initial inspection that's performed on all the entire facilities for compliance with all applicable codes
as well as any previous citations that were discovered and deemed uncorrected in Prior fiscal years after the this uh initial inspection a list of uh all the citations are then compiled and
discussed with the department head as well as the principal for corrective actions to be taken um shortly after approximately two to three months after a final inspection is performed in which they discuss with
the proper Department as well as the principal on any of the citations that have been corrected and the citations that have not been corrected the citations that have been corrected are then immediately reviewed
by the inspector to determine if those citations are in fact corrected any citations that are not corrected uh estimated timetable is provided by the applicable department for those citations now there's three primary type
of citation the first citation is an operational citation which is caused by the occupants of the building and are to be corrected by the respective school or Department staff within that facility those are typically to be resolved by
the end of the school year the second type of citation is a maintenance citation which minor repairs are needed to correct those are typically corrected by maintenance and plant operations staff as it requires a little bit more expert to
correct and thirdly is the capital citation which are major repairs that are are needed to correct those are assigned to uh minor groups within the Phil facilities constructions department and those typically are resolved within
two years and lastly there's a special designation in which the Florida Administrative Code deems them as a serious life safety hazard those are reported to responsible District department at the time of Discovery so immediate action can be taken to correct
those citations uh the first conclusion we um we looked and verified if all of four inspectors were certified by the State Fire Marshall during the inspection periods of fiscal years 2023
and 2024 we determined that they were all had access active certifications during those periods we also reviewed fiscal years 2021 through 2024 we reviewed the comprehensive safety inspection reports that are given to the school board for approval and determine
that they were submitted timely and approved timely by the school board as required by Florida Statutes conclusion number two is we reviewed fiscal years 2023 and
202 for fire safety and Casualty sanitation citation corrected report this report lists all citations that were deemed corrected by the fire safety inspectors during those years we sampled
19 schools to confirm if those citations were in fact corrected We performed this observation with a building code Services inspector of the 187 citations that we reviewed 15 of those cited
citations still existed even though they were reported as corrected by building code Services it should also be noted nine of those 15 were operational related in regards to in appropriate storage of items in mechanical rooms as well as inappropriate storage of gas
powerered equipment conclusion number three we reviewed the 2024 final comprehensive safety inspection report this report lists all all open citations that have not been corrected during the fiscal year as well as any citations that have
not been corrected in Prior years um on that report there's a total of 1 1525 open citations it should be noted that 121 of those citations were the serious
designated citations 26 of those citations had not been corrected for one to six years since they were initially identified it should also be noted 106 of those 121 serious citations were
operational related meaning that those are should typically be resolved by the end of the school year 19 nonserious Capital related citations have been uncorrected for 11 to 29
years and lastly as of May 30th 2024 building code Services did not have written procedures criteria methodology for inspectors to classify the safety deficiencies when discovered inspectors would generally rely on their
Professional Knowledge to classify any new types of citations that have never been identified before after discussion with the oig on August 20124 building code Services updated their administrative guideline to include
information for classifying these safety deficiencies any questions no one has any questions I have a question here for the capital related deficiencies for 11 to 29 years some of those facilities still
operational yeah it's Joseph Sanchez the Chief Operating Officer and I I'll start out and if uh Mr Dolan or uh Mr LOD would like to add to it um yes facilities most of there
still operational I don't think that we do any inspections of facilities that are not operational right um but the reason why some of those outand those some of the site stations those Capital ones are outstanding because we're planning to do a a major project in those those facilities or we're planning to demolish those facili ities at some
point so it doesn't doesn't make a lot of sense to spend a bunch of money to renovate or to um you know to fix those citations when the buildings about ready to be demolished and renovated so that's it's usually part of a planned project that we we incorporate those those uh
placement or cures for those citations thank you any other questions Frank Mr chairman um on the uh Mr Sanchez on the on the 26 serious deficiencies um are those deficient I I remember from
the years on the board but um those I know sometimes it's the serious deficiency is not related to something that could harm students or staff on the campus th those the kind of serious deficiencies we have here are some of these deficiencies actually a safety
hazard for the students and the and the staff that yeah I'm going I'm going to start out while Mark large our building official comes up as well um but some some those was just reported um by the auditor that you know some of these citations were not fixed some of them
were fixed and then they reoccurred because of one reason or another um and an example of that is when um when storage is placed in a in an electrical room um the the inspector will cite that and the storage will be removed and then by the time they come back for the
second inspection somebody else put something or somebody put something back in there so sometimes you know it's noted that they weren't corrected but they were were corrected but then they were they were they they offended again but Mr LOD um would you like to add anything else to that yeah yeah that's correct and the
designation as serious as really any life safety system it could be as simple as a fire extinguisher uh out of certification for a month so that's obviously not as serious as possibly erress out of the building if the fire
safety inspectors consider it an eminent threat uh it requires immediate action it's it's not even and I thank the the auditor and the committee for um we're always looking for continuous Improvement and we we've definitely
benefited from this audit to improve our system so thank you for that but uh the eminent threat and and we've uh put this into our uh our administrative guideline to classify uh in distinct terms the
difference between a serious citation and an emminent threat okay so um right to answer your question yeah there they vary in severity definitely even the serious side all right thank you okay there any any other questions
of uh Andre if not I'll accept a motion to approve the report motion to approve second any discussion all in favor I all opposed passed unanimously
Andre nice job appreciate it okay now we'll go on to the RSM presentation Chantel thank you good morning everyone um before I get started I just wanted to thank Heather and Annette um and as well as their team for helping us get through the audit this year um this year there
were two thank you there were two additional auditing standards that required a lot of additional documentation from their team in regards to internal control processes as well as risk assessment and I just wanted to thank um thank you all for you guys always do a good job but I know this
year was a little bit um a little bit more difficult with trying to get some of the documentation that was needed as part of the audit as well as um as Teresa mentioned this is a inspection year for them so in regards to our firm there's also an inspection a peer review
inspection year so this also required a lot more additional detail and documentation for that audit um so to get started um let me go to um in regards to this um executive summary with this presentation it was provided I just wanted to note to the
school board's meeting in December and I know originally it was supposed to be presented to the audit committee here um just before the break um so in regards to this we have audited the financial statements of the school district as of and for the year ended June 30th 2024
um this is this very large document that I know Heather those provided to the audit committee this document is the responsibility of the district and in regards to this we provided an unmodified opinion on the district's
financial statements in addition we also performed an examination of the district's compliance with Section 28. 415 of the Florida Statutes that relates to the district's compliance with Investments um and for that report we had no um we
didn't find any instances of non-compliance and also I'll later in the presentation I'll go over the single audit report and management letter which we also issued as part of our audit we
identified significant Rel risks related to revenue recognition which we subsequently communicated in our letter that was dated September 13th and that basically just covered what our plan scope um of the audit was going to
be as part of that um the district did there was just one additional um government standard that was adopted this year however that didn't have a significant impact on the district's financial statements we didn't identify
any audit adjustments however we did have several uncorrected misstatements which we'll further go over on pages 11 to 14 and we also didn't identify any deficiencies an internal control we um so management as they noted has
the ultimate responsibility for the appropriateness of the accounting policies we did know that the district didn't adopt any significant new accounting policies we also didn't identify any policies that were controversial or didn't have a lack of
author authoritative guidance and we also did not identify any significant usual unusual transactions on the next few pages um we listed out all of the significant accounting estimates that the district has however I'm just going to touch upon a few of
them when does it not want to okay so it's not clicking today here we go um so the first one I wanted to touch on is that the district is self-insured for General automobile and workers compensation as well as health insurance
in regards to this estimate the district uses uh utilizes a third party acty to determine what that estimate would be as part of our procedures we send those reports to we test the underlying data for those reports and we also send that report to our own internal Specialists
to make sure that the underlying assumptions are reasonable we concluded that the resulting estimate was reasonable the district is also has offers post employment benefits um for that report again they also send those
um they send that information to their external actuaries in order for them to determine what that liability would be we performed the same procedures by sending that to our internal Specialists and we audit the underlying data and we also concluded that that estimate was
reasonable the last estimate I wanted to touch on was the pension so the district is part of the Florida Retirement System system as which is a cost allocation plan for that the um the district just sends their monthly contributions for
the plan um and it's actually the Florida Florida auditor general that audits that data however we still send those valuation reports to our own internal Specialists and as a result of that we found that all of the underlying
assumptions that were utilized and the methodology was were reasonable and that estimate was also deemed to be reasonable um as I mentioned previously we didn't have any audit adjustments made to the original trial balance however we did have several uncorrected
misstatements which management as well as the Auditors redetermined that they were immaterial to the financial statements we have included them on the next few pages um which I won't go over as I st stated that they weren't um
individually or in aggregate material to the financial statements but we provided them there for your information um as part of our audit we didn't have any significant issues um we also didn't have any disagreements with management or encounter any significant difficulties in deal with management we
aren't aware of management having any consultations with other accountants or Auditors and we also didn't encounter any significant difficult matters that require consultation outside of our engagement team um as part of our audit we are required to be
independent um and our responsibilities basically is to make sure that we're independent in both mine and an appearance when providing the audit and our other attestation Services okay um these are just the
representation letter that um the district basically um represents to us everything in relation to the financial statement um and as part of that it basically goes over um that they
provided all the information and everything that we needed to conduct the audit um and makes various representations to us that um where is it it also includes within here the um past adjustments the uncorrected misstatements that I mentioned
previously on um the few sides come on um so as mentioned we also perform an examination audit like I um stated earlier on the district's compliance with um with Investments and in addition
this then goes over our report on internal control over financial reporting which basically states that we didn't identify any significant deficiencies or material weaknesses over the financial statements this report is um was then
issued in addition to the district's um annual comprehensive Financial report which was dated December 17 2024 does this take us to the next report do you know there should be another report that has the single audit report in the
management [Music] letter let me see that's the same one yeah that's the same one okay do you have no but we can I mean we can go over
what the single audit report was so there was as part of the single audit that's auditing all the federal grants uh there were several that were were deemed to be high risk there were no audit findings yes that's the most
important part um I guess from memory I'll just let you know in regards to to the single audit report um we performed that report in in accordance with the uniform guidance um the district received um a
lot I guess they received and expended at least 472 million that I can recall in federal expenditures um during um the year ended June 30th 2024 um as part of that for the single audit we perform a risk assess um a risk
based audit approach and we select Ed six um major programs to be tested um those some of those grants that we tested um was related to one of them was the child and adult care
program another one was the rooc program we also audited the ASA program a child and adult care food program um I think it was supporting effective instruction um English language and
English language um Grant and as part of our audit of all six of those programs we didn't have any um we noted that the district was in compliance over um with the uniform guidance and we also didn't have any internal control findings over that
program um in addition to the single audit we also issued the management letter and in regards to the management letter we didn't we're required to perform that in accordance with the Florida auditor general chapter 10.80 as part of that report we're
required to follow up if there were any prior audit findings we didn't have any prior audit findings in relation to fiscal year 23 we also didn't have any findings um or recommendations for management for fiscal year 24 um we also required to perform
Financial condition assessment procedures we didn't note that the district was in a deteriorating condition um we also noted that they include a itemized budget that's um that's easily understandable for the public um and again just mentioned that
they didn't have any findings are it also shows you a schedule of findings that has a summary of all of this information that basically says that we issued an unmodified opinion on the financial statements which is the best opinion that the school district can have and again that it shows you that we
didn't have any findings for the single audit as well as the management letter um and that's incl conclusion I apologize for not having those additional attachments um I yes we can send it yeah I it's our fault for thinking
they were part of the presentation because they were just separate docents and when I saw the appendices in the back with the letters I just thought all the other ones were included in there so that's our error for not sharing those additional letters but they they were sent by RSM and I did want to thank
Shantel um as well as her team with the change in auditing standards there was a significant amount of additional work and yes there was a significant amount for the district but it was much more on the audit team and I you know I'm
pleased to say that you know I you know to take a a positive look at this the fact that we had no findings with the amount of additional selections they had this year you know it goes to the to the team that we have in place so Annette and her team really did an outstanding job this
year thanks and with that I'll open up with any questions any questions Chantel D I don't have any questions this is Gloria Branch but thank you for all your hard work and thank you heather for helping them you guys are awesome thank
you okay and I want before we close out I just want to congratulate Heather and her team for again providing the background and uh giving us a no finding audit so congratulations to you if there are no further questions we'll move on to uh the committee's review of board
policies 1.91 which addresses the audit committee and 1.92 which addresses the Inspector General if you remember these were provided last month and it was agreed that we would address these two today and at the March meeting we'll address uh board policy
2.62 so are there any questions after reviewing uh these board policies and again what I would like to just put out there if you guys do have any subsequent recommendations suggestions edits please don't be shy about emailing them directly to me so
that we can incorporate those into part of what's going to be a comprehensive um overhaul of of of many of the IG policies that um that that need to be sort of tightened up and then reviewed so don't think that just because today was sort of a deadline for
1.0 91 and 1.92 that we still don't welcome all of your your suggestions just email me at k.h highp palmbeachschools.org Happy Valentine's Day okay there any questions or comments okay uh that's just an FYI they
don't need to be approved so we'll move on to investigations and those were previously forwarded to you by Joyce um are there any uh General comments well I want to wish everyone a Happy Valentine's Day and in particular
I want to compliment I don't know where curious with his red coat but he CLA I asked him if he just bought that he says no he's had it since high school that's hard to believe but at any rate congratulations well Happy Valentine's Day uh our next scheduled
meeting is uh Friday March 21st and if there's no further business I'll accept a motion to aurn I so move thank you meeting a Jour thank you all for attending and again Happy Valentine's Day oh that's these are