[C.1. WA RES 23-01 Consider approving Resolution 23-01 approving the Fiscal Year 2021-2022 Annual Audit Report from BrooksWatson & Co., PLLC; and take appropriate action]

APPROVING THE FISCAL YEAR '21, '22 ANNUAL AUDIT REPORT WITH BROOK WATSON'S PLLC AND TAKE A PROBIOTIC.

>> GOOD AFTERNOON. MY NAME IS LEWIS PRETTY I'M WITH BROOKS WATSON.

I'VE HAD THE PLEASURE OF WORKING WITH THE WESTLAKE ACADEMY DURING THE 2022 FISCAL YEAR AUDIT.

I DO WANT TO BEFORE I GET STARTED, WANTED TO, JUST MAKE SURE THAT ADDRESSES THE TIMING OF THE AUDIT, SO IDEALLY, WE'D BE DOING THIS MUCH SOONER THAN WE ARE DOING IT TODAY.

AS YOU MAY ALL KNOW PERSONNEL CHANGES FROM MANY DELAYS THAT CAUSED A LATE START TO THE AUDIT, AS THE NEW AUDITORS, WE DID A NUMBER OF SEIZURES THAT REQUIRE A LOT MORE IN DEPTH TESTING TO A FIRST-YEAR, MAKE SURE THAT WE'RE VERY FAMILIAR WITH THE ACADEMY FEATURES AND THINGS OF THAT NATURE.

WE GOT IT DOWN TO THE VERY END OF FROM A TIMING PERSPECTIVE ON WHEN WE COULD GET THIS DONE.

I'M HAPPY TO SAY THAT WE ARE ABLE TO ACCOMPLISH THAT, BUT IT IS IDEALLY, THIS WOULD BE PRESENT TO YOU MUCH SOONER AND BOTH WILL BE, BUT I WANTED TO MAKE SURE THAT.

>> I JUST WANT TO ASK QUESTION ON THAT TOPIC.

>> SURE.

>> MY UNDERSTANDING IS THAT YOUR GROUP'S BEEN APPOINTED FOR A THREE-YEAR INITIAL CONTRACT, IS THAT RIGHT?

>> YES, SIR.

>> THIS BEING THE FIRST YEAR YOU'VE UNDERTAKEN AUDIT, I THINK I HAD MENTIONED TO YOU VERY BRIEFLY BEFORE WE FACE A VERY SIMILAR SITUATION THIS PAST MAY, AND THAT WAS OUR FIRST EXPOSURE TO DISPEL AUDIT, AND WE WERE GIVEN NEXT TO NO NOTICE IN ORDER TO REVIEW AND APPROVE THE AUDIT IN A PUBLIC MEETING.

AS YOU'RE AWARE, AND I DON'T THINK YOU'VE EXPLICITLY SAID SO WE'VE HAD LESS THAN 24 HOURS TO REVIEW THIS PARTICULAR AUDIT.

I THINK GIVEN THIS IS YOUR FIRST AUDIT OF A THREE-YEAR CONTRACT, CAN YOU JUST TALK A LITTLE BIT MORE ABOUT THE UNDERLYING CONDITIONS WHICH LEAD TO THE DELAY AND WHAT ARE OUR BEST EXPECTATIONS AND FUTURE PERIODS IN TERMS OF WE AS A COUNCIL CAN EXPECT.

>> ABSOLUTELY, SO BEFORE WE KICK OFF THE AUDIT, WE ALWAYS IN OUR PLANNING PROCESS, WE SET OUT A TIMELINE OF WHEN AND WE'RE ENGAGED TO COMPLETE THE AUDIT FOR THE ACADEMY AS WELL AS THE TOWN.

WE OUTLINED DO THAT AND IN THE ACADEMY TO BE COMPLETED, I DON'T REMEMBER THE EXACT DATE BUT STARTED OCTOBER TIMEFRAME TO START FIELDWORK.

WE DID SOME PRELIMINARY TESTING AT THAT TIME, BUT THAT WAS SIGNIFICANTLY DELAYED DUE TO PERSONNEL CHANGES THAT RESULTED IN WHEN WE NEED THE ITEMS, OUR SCHEDULED DATES TO BE ABLE TO START FIELDWORK.

>> WHICH PERSONNEL IN PARTICULAR, SO IN OCTOBER, WHICH PERSONNEL LEFT, THAT WAS A DELAY?

>> NOW, AS FAR AS WHEN THEY LEFT, THERE WAS A CHANGE IN THE FINANCE DIRECTOR POSITION.

I NEVER MET THE PREVIOUS FINANCE DIRECTOR BEFORE AMBER TOOK OVER THAT ROLE, THOUGH AT THAT TIME IN HER TRANSITION INTO THAT ROLE, SHE ENCOUNTERED MANY THINGS WITH THAT ROLE THAT DELAYED HER BEING ABLE TO GET THE INFORMATION TOGETHER TO BE ABLE TO GET THAT TIMELY.

>> YOU'RE SAYING THE JOURNAL ENTRIES WERE BEHIND FROM THE START?

>> PERHAPS JOURNAL ENTRIES BEHIND.

THERE WAS DEFINITELY SOME JOURNAL ENTRIES BEING MADE UP TO THE DATE THAT WE GOT THE INFORMATION, SO I KNOW THEY WERE HAVING TO CATCH UP ON A NUMBER OF ITEMS.

>> THE FISCAL YEAR ENDED SEPTEMBER 1ST? STARTS THE SCHOOL?

>> YES, SIR.

>> SEPTEMBER 1ST, WE WERE STILL BEHIND ON JOURNAL ENTRIES?

>> THAT'S CORRECT.

>> ARE WE CAUGHT UP NOW?

>> FOR LAST YEAR, BUT WE'RE STILL A LITTLE BIT BEHIND FOR THIS CURRENT YEAR.

>> WHAT'S OUR PLAN TO GET THAT?

>> WE'RE WORKING WITH AN EXTRA STAFFING AND WE'RE IN THE PROCESS OF TRYING TO INTERVIEW FOR THE NEW CFO TO GET THAT UP AND RUNNING.

>> WITH THAT RESULTED, WE CAN'T START AN AUDIT UNTIL WE HAVE INFORMATION, UNFORTUNATELY.

[00:20:04]

ONCE THAT DATA WAS PROVIDED, WE ARE ABLE TO SHIFT SOME SCHEDULING AROUND JUST DUE TO OUR PLAN TIMELINE BEING UNABLE TO FIT THAT, SO THAT RESULTED IN JUST SAID TIMING OF BEING ABLE TO GET THAT INFORMATION AS SOON AS WE GOT IT, WE STARTED WORKING ON IT, AND I KNOW THERE WAS A NUMBER OF YEAR-END CLOSE OUT ENTRIES, IT ALSO NEEDS TO BE MADE AFTER THEM GETTING CAUGHT UP ON THE YEAR-END PROCESS, AS WELL AS JUST THE DAY-TO-DAY ACTIVITY THAT THEY'RE HAVING TO COMPETENCE STILL COMPLETE.

FROM A STAFFING STANDPOINT, I KNOW THAT THEY WERE PUTTING IN QUITE A BIT OF TIME TO GET IT THERE, AND I KNOW THEY WERE WORKING HARD TO GET IT TO US IN A TIMELY MANNER, BUT IT WAS THIS DELAYED.

IT WAS ABOUT EARLY TO MID-DECEMBER WHEN WE GOT FINAL NUMBERS, AND WE'VE TURNED IT AROUND PRETTY QUICKLY GIVEN THAT IDEALLY, WE WOULD START WORKING IN OCTOBER, BE ABLE TO IF THIS YOU GUYS AT LEAST A MONTH AHEAD OF WHERE WE'RE AT TODAY, AND ALSO GIVE YOU AMPLE AMOUNT OF TIME TO REVIEW THE REPORT TO BE ABLE TO MAKE SURE THAT YOU'RE FULLY COMFORTABLE WITH EVERY WORD IN HERE.

WE DO WANT TO ENSURE THAT WE DO THAT, AND IT'S UNFORTUNATE THAT WE WERE UNABLE TO DO THAT THIS TIME.

>> YOU HAVE THE SLIDE DECK TODAY?

>> I DO. YES, SIR.

>> I'M SORRY, CAN I ASK ANOTHER QUESTION ON THIS? THE VERSION WE NOW HAVE, IS THAT FINAL?

>> I DON'T ANTICIPATE ANY CHANGES RIGHT NOW, I'M HAVING IT REVIEWED, ONCE.

>> IT TECHNICALLY DRAFT.

>> TECHNICALLY IT'S A DRAFT, I DID, BUT FINISHING TOUCHES ON IT YESTERDAY, WHICH IS WHY YOU JUST RECEIVED IT WITH AND SO INTERNALLY WE HAVE TWO LAYERS OF REVIEW.

UPON COMPLETION, IT'S GONE THROUGH REVIEW, INITIAL REVIEW, AND THEN IT WILL GO THROUGH TWO MORE LAYERS OF REVIEW AND AQUATIC CONTROL REVIEW THEIR SECOND LAYER, THOUGH THAT IS WHY UNTIL THAT POINT IT HAS BEEN REVIEWED, WE ARE UNABLE TO AN INTERNAL POLICY UNABLE TO SIGN IT AS ASSIGNED AN OPINION LETTER, BUT OTHERWISE, I DON'T ANTICIPATE ANY CHANGES, I KNOW IT'S ALSO GONE THROUGH THE FINANCE TEAM HERE, HAS ALSO GONE THROUGH IT TO IDENTIFY ANYTHING THAT THEY HAD QUESTIONS ABOUT OR I THINK THERE'S A COUPLE FORMATTING ITEMS THAT WERE IDENTIFIED LIKE BINDS AND THINGS OF THAT NATURE.

SOME LITTLE TWEAKS THAT WILL FOR SURE BE IMPLEMENTED AS THE FINAL, BUT OTHERWISE DON'T ANTICIPATE ANY ISSUE.

>> CAN YOU HELP ME UNDERSTAND THE PROCESS SO WE FINALIZE THE AUDIT GET APPROVED WE WANT LONGER TIME-FRAME NEXT GOT IT.WHEN IS THIS DUE AND THEN WHERE DOES IT GO? WHAT'S THE PROCESS?

>> THE TA IS THE UPLOAD IS ACQUIRED BY THE END OF THIS WEEK.

>> FRIDAY.

>> SATURDAY IS THE TECHNICAL DUE DATE, BUT FRIDAY IS UPLOAD, THE PLANT UPLOAD DATE AT THAT TIME.

IT'S A 24 HOURS OPEN PORTAL, BUT GENERALLY YOU DON'T WANT TO WAIT TILL VERY, VERY LAST SECOND TO UPLOAD.

>> THANK YOU.

>> THAT'S THE TIMELINE ON IT.

>> IF IT'S NOT SIGNED IN, IT'S STILL BEING REVIEWED, CAN WE THEORETICALLY APPROVE IT TODAY?

>> WE DON'T ANTICIPATE ANY CHANGES, IF FOR SOME REASON OTHER THAN THE NOTED FORMATTING ITEMS THAT I CAN SOME LINES AND A COUPLE ITEMS LIKE THAT THAT WE IDENTIFIED EARLIER TODAY WHEN WE WERE CHATTING, HOPEFULLY, THAT WILL BE IT BUT CERTAINLY FOR ME, IT IS POTENTIALLY.

>> I'M BOTTOM LINE UP FRONT, ON THE OUTSIDE OF THE REPORT ITSELF, ON THE ACTUAL AUDIT, IS THERE ANY FINDINGS THAT WE NEED TO KNOW RIGHT NOW?

>> DONE, AND I'LL DEFINITELY BE HIGHLIGHTING THAT AS PART OF THE PRESENTATION, BUT THEY WANTED TO MAKE SURE I JUST BEFORE GENERALLY, I DON'T GIVE A PREAMBLE TO THE PRESENTATION, I DID WANT TO CIRCUMSTANCES TO TIMING OF THIS, I WANT TO MAKE SURE I COMMUNICATED OUT THE GATE JUST BECAUSE I'M SURE EVERY ONE OF YOU WHO ARE CONCERNED ABOUT THAT ASPECT OF IT, WHICH AS I AM AS WELL.

>> JUST TO TAG ONTO THAT, AND I'M SORRY, I KNOW YOU FEEL LIKE JUST HELP US EDUCATE US THOUGH FORWARD WHAT ARE THE HOT BUTTONS FOR? WHAT ARE THEY LOOKING FOR WHEN THEY GET THERE? WHAT ARE THEY GETTING, ANY ANSWERS?

>> YEAH, SO CODES ARE HUGE AS FOR ACADEMIES,

[00:25:07]

IT'S VERY STRUCTURED AND STRINGENT IN TERMS OF THE TYPE OF FUNDS AND HOW THOSE THE ONES THAT ARE COMING INTO THE ACADEMY AS WELL AS THE WAY THOSE FUNDS ARE SPENT AND HOW THOSE RECORDED THROUGHOUT THE YEAR UPLOAD CITY J FOR PEEMS REPORTING AND THINGS OF THAT NATURE THAT IS ALSO PERTAINS THE CODING, SO THAT'S THE BIGGEST THING.

THERE IS A CERTAIN NOTE DISCLOSURES AND THINGS OF THAT NATURE THAT THEY EXPECT THAT ARE REQUIRED, AND SO BUT THE PRIMARY THING THAT BECAUSE THEY CAN COMPARE IT VERY EASILY, THE TA IS VERY DATA-DRIVEN AND EASILY COMPARE WHAT'S REPORTED VERSUS WHAT THEY ALREADY KNOW, SO THAT'D BE RED FLAGS IMMEDIATELY

>> CONTINUE WITH THE PRESENTATION.

>> ABSOLUTELY. I DO LIKE TO ALWAYS GIVE A LITTLE BIT OF AN OVERVIEW OF THE AUDIT PROCESS JUST TO GIVE YOU SOME INFORMATION IN TERMS OF HOW AND WHY WE DO WHAT WE DO.

ONCE THE AUDIT IS PERFORMED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS, AND WHEN WE DO THE AUDIT WE BREAK IT DOWN INTO FIVE PHASES.

THE FIRST PHASE IS THE ASSESSMENT PHASE.

THAT'S WHEN WE COME OUT AND WE'RE LOOKING AT PRETTY MUCH ANY AREA WHERE MONEY IS GOING IN MONEY GOING OUT.

WHAT ARE THE CONTROLS AND THE PROCESSES IN THOSE AREAS? WE SIT DOWN, WALK US THROUGH HOW THIS ASPECT OF IT WORKS, AND THEN WE DO SAMPLE TESTING OVER THAT AREA TO ENSURE WHAT WE'RE SEEING IN TERMS OF THE CONTROLS, ANY POTENTIAL RISKS, HOW THOSE ARE MITIGATED.

WE'RE SEEING THOSE IN PRACTICE THROUGH OUR SAMPLE TESTING TO ENSURE THAT WE'RE SEEING A FULL PICTURE AND THAT WHAT'S DONE IN PRACTICE IS ALSO IN LINE WITH THE POLICIES.

ONCE WE'VE DONE THAT WE MOVE INTO THE RISK-BASED APPROACH.

WHAT THAT MEANS IS EVERY ASPECT OF THE FINANCIALS HAVE A DIFFERENT LEVEL OF RISK AND TYPES OF RISKS.

THOUGH, SOME OF THE THINGS WITHIN THE SCHOOL SUCH AS THE TYPES OF REVENUES ENSURES THE COATING OF THOSE, A PAYROLLS OF BIG AREA FOR THE ACADEMY.

SOME OF THE WAY THAT THOSE DISBURSEMENTS ARE DONE AND THE TYPES OF ACCRUALS.

WE LOOK AT THOSE AS HIGH-RISK AREAS FOR POTENTIAL ISSUES AND THOSE TYPES OF RISKS AND THE TYPE OF RISKS THAT WE SEE IN THOSE FINANCIALS WILL DRIVE THE TYPE OF PROCEDURES WE'RE GOING TO DO, THE LEVEL OF DETAIL, WE JUST WE'RE GOING TO DO OVER EACH OF THOSE AREAS.

AFTER THAT WE DO A COMPLIANCE TESTING.

THE THINGS SUCH PUBLIC FUND INVESTMENT ACT, ANY BID REQUIREMENTS, GRANTS, ANYTHING LIKE THAT WHERE THERE ARE COMPLIANCE REQUIREMENTS FOR THE ACADEMY.

WE ARE LOOKING AT THOSE TO SEE IS THE ACADEMY IN COMPLIANCE WITH THOSE.

WE READ ALL BOARD MEETING MINUTES TO DETERMINE IF ANYTHING COMES UP THAT THERE MAY BE NEW REQUIREMENTS FOR THE ACADEMY.

WE VERIFY WHETHER OR NOT THE ACADEMY IS IN COMPLIANCE WITH THOSE AS WELL.

THEN WE MOVE INTO THE ACTUAL FIELDWORK SO AT THE END OF THE YEAR WHEN WE GET THOSE FINAL NUMBERS WE TIE DOWN THE BALANCE SHEET, PERFORM CUTOFF TESTING TO ENSURE EVERYTHING THAT SHOULD BE INCLUDED IN THE FISCAL YEAR UNDER AUDIT HAS BEEN, AND AS WE'RE DOING THAT WE'RE ALSO CONFIRMING WITH THIRD-PARTY WHEREVER POSSIBLE.

WE'RE TYING OUT ITEMS THROUGH THE GRANTING AGENCIES, THROUGH T, CONFIRMING WITH BANK BALANCES, ALL THOSE THINGS.

AS WE TIE OUT THAT BALANCE SHEET ENSURING THAT THAT'S MATERIALLY ACCURATE, WE'RE ALSO TYING OUT AND ENSURING THAT THE REVENUES ARE MATERIALLY ACCURATE AS WELL.

ONCE WE'VE DONE THAT, IT GOES THROUGH MULTIPLE LAYERS OF REVIEW AND ENSURE THAT ALL PROCEDURES PERFORMED ARE APPROPRIATE AND COMPLETE AND THE REPORTS ARE ACCURATE AND COMPLETE WITH REQUIREMENTS THEY'RE WHAT WE HAVE FOR YOU TODAY.

WITHIN THE AUDIT REPORT THE COMPONENTS ARE THE INTRODUCTORY SECTION FOLLOWED BY THE FINANCIAL SECTION.

WITHIN THAT YEAR YOU'VE GOT YOUR AUDITOR'S OPINION LETTER, MANAGEMENT'S DISCUSSION ANALYSIS THAT'S GOING TO GIVE YOU SOME YEAR-OVER-YEAR COMPARISON FOR THE FINANCIALS BUDGET INFORMATION, SOME HIGH POINTS FOR THE FINANCIALS BEHIND THAT'S YOUR ACTUAL FINANCIAL STATEMENTS.

THAT'S GOING TO INCLUDE YOUR GOVERNMENT-WIDE STATEMENTS WHICH ARE YOUR FULL ACCRUAL STATEMENTS AS WELL AS YOUR FUND-LEVEL STATEMENTS.

AS THE ACADEMY DOES OPERATE AT A MODIFIED ACCRUAL BASIS FOR FUND ACCOUNTING.

BEHIND THAT IS YOUR NOTES TO THE FINANCIAL STATEMENTS.

THAT'S GOING TO CONTAIN A LOT OF DETAIL PERTAINING TO THOSE FINANCIAL STATEMENTS.

YOU HAVE A LITTLE BIT MORE INFORMATION OF WHAT THOSE NUMBERS CONSISTS OF.

THEN BEHIND THAT IT'S YOUR SUPPLEMENTARY INFORMATION, THAT IS YOUR BUDGET TO ACTUAL AND OTHER REQUIRED REPORTING FOR TEA.

AS IT PERTAINS TO THE AUDITOR'S OPINION, THERE ARE FOUR OPINION TYPES THAT WE AS AUDITORS ARE ABLE TO PROVIDE; IS UNMODIFIED, QUALIFIED, DISCLAIMED, AND ADVERSE OPINION.

WE ARE ISSUING UNMODIFIED OPINION OFTEN REFERRED TO AS A CLEAN OPINION.

THAT'S THE HIGHEST LEVEL OF ASSURANCE THAT WE AS AUDITORS ARE ABLE TO PROVIDE.

[00:30:08]

WITH THE AUDIT REPORT ARE ALSO A FEW COMMUNICATION LETTERS AND ONE IS THE COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE THAT GOES OVER OUR RESPONSIBILITY AS THE AUDITORS, MANAGEMENT SOME RESPONSIBILITY.

THEN THERE'S OTHER FEW KEY FACTORS I ALWAYS LIKE TO POINT OUT FROM THAT LETTER.

[NOISE] THE AUDIT WAS CONDUCTED IN COMPLIANCE WITH ALL ETHICS REQUIREMENTS REGARDING INDEPENDENCE.

NO FRAUD, IRREGULARITIES, OR ILLEGAL ACTS WERE NOTED.

WE ENCOUNTERED NO DIFFICULTY WHEN WORKING WITH MANAGEMENT OTHER THAN THE TIMING BUT OUTSIDE OF THAT PERFECT PEOPLE TO WORK WITH.

THEN THERE WERE NO UNCORRECTED MISSTATEMENTS DISCOVERED AS A RESULT OF OUR AUDIT.

>> I JUST WANT TO ASK TWO QUESTIONS ON THIS SLIDE.

THE FIRST ONE, THE COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE OTHER THAN BOARD MEMBERS.

I'M ASSUMING YOU GOT RESPONSES FROM OUR BOARD MEMBERS.

THEN SECOND PART, WHO ELSE DID YOU SEND QUESTIONNAIRES TO?

>> THE QUESTIONNAIRE IS SOMETHING THAT IS CONSIDERED AS PART OF THAT BUT WE EQUIPPED QUESTIONNAIRES FROM THE BOARD, WHICH I THINK I'M GETTING A COUPLE OF THEM TODAY.

THEN I HAVE MANAGEMENT QUESTIONNAIRES AS WELL.

THOSE IN MANAGEMENT AND THOSE ON THE BOARD ARE THOSE WHO WE HAVE.

>> BUT THAT'S ON THE MUNICIPAL AND THE SCHOOL SIDE.

>> THERE ARE ALWAYS TWO SEPARATE QUESTIONNAIRES.

YOU SHOULD HAVE ALREADY RECEIVED ONE FOR THE TALENT AS WELL.

BUT IT IS A SEPARATE QUESTIONNAIRE.

>> I'M SORRY, DAVID. I'VE GOT COPIES OF THOSE I KNOW WE HAD SENT THEM OUT VIA EMAIL.

THOSE WHO HAVE NOT SIGNED THEM WE HAVE LIKE YOU MENTIONED, ONE FOR THE BOARD, ONE FOR THE MUNICIPAL SIDE AS WELL.

IF YOU WANT TO GRAB THE ONES FOR THE BOT ROLL, THAT'LL BE GREAT.

I'VE GOT COPIES OF THE [INAUDIBLE]

>> YOU MENTIONED ALSO HERE UNCORRECTED MISSTATEMENTS BUT YOU DID FLAG MATERIAL STATEMENTS IN AUDIT.

CAN YOU JUST TALK ABOUT THOSE?

>> THERE WERE NO MATERIAL MISSTATEMENTS.

>> THERE IS AN EXHIBIT HERE WHICH HAD RECLASSIFICATION ENTRIES AND I THINK THEY WERE ALLUDED TO AS MATERIAL MISSTATEMENTS IN DRAFT THAT I READ.

>> NO, I'M SORRY. YEAH. THE NOTE ON THE SLIDE IS THAT THERE IS NO UNCORRECTED.

>> WHOEVER, I UNDERSTAND.

BUT CAN YOU JUST TALK ABOUT THE NATURE OF THE MISSTATEMENTS AND THEN HOW WAS THAT BONDED, HOW WAS IT ADJUSTED, WHO FOUND THOSE, AND WHAT WAS THE NATURE OF THOSE MISSTATEMENTS?

>> THE CORRECTION WAS FOR A RECEIVABLE AT YEAR-END.

THE RECEIVABLE WAS CORRECT BUT WHEN YOU ARE LOOKING AT GOVERNMENTAL ACCOUNTING, THERE IS A REQUIREMENT ON THE TIMING OF THAT COLLECTION OF THE RECEIVABLE.

IF IT'S RECEIVED 60 DAYS BEYOND YEAR-END, IT'S CONSIDERED [NOISE] SORRY, IT IS CONSIDERED A DEFERRED REVENUE.

THE FULL ACCRUAL SIDE IF YOU'RE LOOKING AT THE STATEMENT OF POSITION, YOU'RE GOING TO SEE THAT RECEIVABLE THERE AND YOU'RE NOT GOING TO SEE A DEFERRED REVENUE.

BUT THE FUND LEVEL, IT'S REQUIRED TO HAVE A DEFERRED REVENUE BECAUSE OF THE TIMING.

BUT THERE'S NOT A QUESTION AS TO WHETHER IT IS RECEIVED OR RECEIVABLE, BUT IT HAS TO BE DEFERRED DUE TO TIMING.

IN OUR TIE OUT AND TO THAT TESTING THAT CUTOFF AND THE TIMING OF THE RECEIPT OF THAT RECEIVABLE, IT WAS DETERMINED THAT THAT WAS BEYOND THAT POINT AND SO IT WAS JUST AN UNNECESSARY ADJUSTMENT.

THERE ARE A COUPLE OF OTHER ADJUSTMENTS IN THAT EXHIBIT THAT WERE PROVIDED DIRECTLY FROM THE ACADEMY TO US AS IDENTIFIED BEFORE IN A COUPLE OF RE-CLASSING ITEMS AS WELL, JUST FOR REPORTING PURPOSES.

>> ON THE ACCOUNTS RECEIVABLE SIDE, DOES THAT RELATE TO THINGS THAT WERE IN PLACE AS OF THE END OF THE FISCAL PERIOD BUT IT SINCE CHANGE PRIOR TO THE ISSUANCE OF THE FINANCIAL STATEMENTS OR IS IT UNRELATED TO SUBSEQUENT DISCLOSURES?

>> REPEAT THAT AGAIN. I'M SORRY.

>> UNDER GASB IF THERE'S A CHANGE FROM THE YEAR-END BUT IT OCCURS PRIOR TO THE ISSUANCE OF THE FINANCIAL STATEMENTS, IS THAT A SUBSEQUENT EVENT?

>> NO. IF THERE WAS AN ISSUE IN TERMS OF THE COLLECTIBILITY OF IT, WE COULD ALSO ALLOW THAT RECEIVABLE.

IT'S NOT A QUESTION AS TO, HEY, HAS IT [OVERLAPPING]

>> THIS WAS JUST NOT BOOKED CORRECTLY IN THE FIRST PLACE IS WHAT YOU'RE SAYING?

>> THE RECEIVABLE WAS THAT THERE WASN'T AN OFFSETTING DIFFERED AMOUNT.

IT WAS JUST TO INCORPORATE THAT.

THE RECEIVABLE WAS CORRECT AND ALL THE REVENUES ARE CORRECT.

BECAUSE OF THAT TIMING ISSUE ON THE FUND LEVEL IT DOES CHANGE YOUR REVENUE BECAUSE IT PULLS IT OUT OF REVENUE AND MOVES IT TO YOUR BALANCE SHEET AS A DEFERRED REVENUE.

BUT THAT WAS THIS YEAR.

>> IT JUST REDUCE THE REVENUE NUMBER.

>> THAT'S RIGHT. AT THE FUND LEVEL.

[00:35:03]

>> WAS THIS PICKED UP BY THE AUDITORS, DEDUCTION?

>> YES.

>> BUT IN TERMS OF OTHER POTENTIAL MISSTATEMENTS, NOTHING MATERIAL OR OTHERWISE HAVE CONCERN?

>> VERY CLEAN, ACTUALLY.

TO CONTINUE ON COMMUNICATION REGARDING INTERNAL CONTROLS, THAT'S THE OTHER LETTER.

WE DID NOT IDENTIFY ANY INTERNAL CONTROL ISSUES.

TIMING OBVIOUSLY IS A FACTOR WE CONSIDER, BUT NOT AN INTERNAL CONTROL PER SE DUE TO PERSONALITY CHANGES AND THINGS OF THAT NATURE SO THERE WERE NO INTERNAL CONTROL ITEMS NOTICED.

>> I'M GOING TO APOLOGIZE ON THAT.

HELP ME UNDERSTAND, WE'RE EVER FAR POSTING [NOISE] ENTRIES TO GET CORRECT FINANCIAL.

HELP ME UNDERSTAND THAT CONTROL HOW SOMEONE WASN'T ON FIRE OR SOMETHING.

I DON'T KNOW HOW MANY MONTHS IT'S BEEN GOING ON. HELP ME UNDERSTAND.

>> [NOISE] THE WAY IT WAS EVALUATED IT WASN'T THAT THEY WERE THE DAY-TO-DAY STUFF WAS BEING IN BOOK.

IT'S ALL THOSE TRUE UP TYPE ERROR CORRECTING ENTRIES, OR THE ACCRUAL TYPE ENTRIES AT THE END OF THE YEAR.

AMY HAD BEEN A FACTOR ALL THE TIME THEY ARE GETTING THE BANK RECONCILIATION DONE AS WELL.

I KNOW THERE WAS SOME SYSTEM ISSUES RELATED TO THE BANK RECONCILIATION.

THERE WAS ONE ITEM THAT WAS HAVING TO GET IRONED OUT ON COMMUNICATION WITH THE SYSTEM.

HOWEVER, OTHER THAN THAT, THE DAY-TO-DAY TRANSACTIONS, THOSE WERE ALL BEING BOTH TIMELY AND ACCURATELY.

IT WAS PURELY EMPOWER SITUATION, WHICH I GUESS YOU COULD ARGUE THAT'S AN INTERNAL CONTROL ISSUE.

WE DIDN'T IDENTIFY IT AS SUCH BECAUSE IT WASN'T THAT AGE. [OVERLAPPING]

>> JUST FINE, I JUST WANT TO MAKE SURE YOU [INAUDIBLE] [OVERLAPPING]

>> ABSOLUTELY.

>> THINGS LIKE THE BANK ACCOUNT RECONCILIATION.

BUT WE HAVE GOOD CONTROLS, GOOD PROCEDURES AROUND [NOISE] EACH OF THE ITEMS, ALL THAT STUFF.

>> OBVIOUSLY TIME IS A FACTOR, BUT OUTSIDE OF THAT, THERE ARE CONTROLS AROUND THAT RECONCILIATION PROCESS, VERY DETAILED.

I THINK IF YOU'VE LOOKED AT, IS A LOT OF DETAIL, MARLENE IS PARTICULAR TO THE DETAILS.

I THINK THERE'S A NOTE ON PRACTICALLY EVERY ITEM AND EVERY BANK RECONCILIATION [OVERLAPPING] FROM THAT STANDPOINT, I THINK THINGS ARE GREAT.

OBVIOUSLY. AS WE'VE SAID, THERE'S TIMING ISSUE.

>> I UNDERSTAND

>> BUT BEYOND THAT [OVERLAPPING]

>> I JUST WANT TO ASK A FOLLOW-UP QUESTION THAT COME TALKING ABOUT JUST RECONCILING BANK STATEMENTS.

YOU MENTIONED EARLIER, THAT AS AUDITOR YOUR DUTY ALSO RELATES TO COMPLIANCE TESTING, AND I THINK YOU HAD MENTIONED ABOUT INVESTMENT PRACTICES, FOR EXAMPLE DID YOU LOOK AT THE NATURE OF WHERE CASH IS BEING HELD, WHETHER IT'S BEING PROPERLY DIVERSIFIED, WHETHER IT'S OBTAINING SUFFICIENT YIELD, WHETHER THERE'S SUFFICIENT INSURANCE PROTECTION, ETC

>> WOULD YOU LOOK AT THAT.

WE DON'T REALLY COMMENT ON MANAGEMENT'S DECISION ON AIR, THEY CHOOSE TO DIVERSIFY, AS LONG AS WE KNOW IT IS COLLATERALIZED.

WE DO TEST TO ENSURE OR THOSE FUNDS LATERALIZED, IT'S VERY COMMON FOR A LARGE PORTION OF THE MAJORITY OF THE FUNDS TO BE HELD IN ONE LOCATION AND TO MAKE SURE THAT THOSE FUNDS ARE COLLATERALIZED.

>> WHY WOULD THEY BE COLLATERALIZED BY?

>> DIFFERENT FINANCING INSTRUMENTS THAT THEY GET WITH THE BANK.

>> BUT ARE YOU TALKING PURELY ABOUT FDIC? OR ARE YOU TALKING SPECIFICALLY? [OVERLAPPING]

>> IT'S BEYOND THE FDIC, FDIC COVERS 250,000 AND THEN BEYOND THAT, YOU'D HAVE TO COLLATERALIZE ANY OTHER PORTION TO ENSURE IT'S PROTECTED IN CASE ANYTHING WERE TO HAPPEN.

>> WE HAD ABOUT A MILLION AND A HALF INK ROUGHLY AT THE ACADEMY DURING THE YEAR, BEYOND FDIC COVERAGE, WAS THE CASH SUFFICIENTLY COLLATERALIZED?

>>IT IS. IT'S ACTUALLY A NOTE WITHIN THE REPORT AS WELL.

[NOISE] I DIDN'T NOTE THAT THE AMOUNT HELD IN THE ATTACKS POOL, TEXTS POOL, OR TECH STAR, THAT IT WAS PRETTY MINIMAL AMOUNT.

YOU'LL SEE A LOT OF CITIES AND TOWNS AND VALLEYS WILL DIVERSIFY THAT SOME, I THINK IN TALKING WITH MANAGEMENT, THERE'S THE BANK, THERE'S BEEN LIKE A MATTER OF INTERESTS TO ENSURE THAT THERE'S AT A LOSS,

[00:40:01]

THAT THEY ARE SEEING IT FROM THAT PERSPECTIVE.

BUT AS FAR AS THE DIVERSIFICATION IS GENERALLY NOT A LOT OF DIFFERENT.

>> LET ME ASK MORE BLUNTLY.

FROM AN AUDITING PERSPECTIVE, DO YOU FEEL THAT WE ARE IN COMPLIANCE WITH THE PUBLIC FUNDS INVESTMENT ACT?

>> YES.

THERE'S A CHECKLIST FOR THAT, THE PFIA REQUIREMENTS, SO WE GO THROUGH THAT TO ENSURE THE BIG THINGS OR A POLICY IS IT ADOPTED ANNUALLY? ARE THERE QUARTERLY INVESTMENT REPORTS THAT ARE IN EACH OF THOSE THINGS HAVE TO HAVE CERTAIN WORDING IN THOSE.

>> ON THE QUARTERLY INVESTMENT REPORTS, I'M NOT SURE WE SEE THEM WHAT'S THE OBLIGATION THERE TO CREATE THEM OR TO DISSEMINATE THEM?

>> WE HAVE COPIES OF THOSE, AS I UNDERSTOOD THEM TO BE PRESENTED TO CANCEL, SO THE WAY THAT IT'S BROKEN DOWN IN THE GUIDANCE AND REQUIREMENTS FOR PFIA IS THAT IT IS THEY'RE SUPPOSED TO BE DONE AT A MINIMUM QUARTERLY, CERTAIN LANGUAGE THAT NEEDS TO BE IN THOSE, AND ALSO THAT THEY'RE PROVIDED TO COUNSEL OR THE BOARD QUARTERLY, AND THAT USUALLY THERE'S LIKE A DELAY IN TERMS OF LIKE FROM WHATEVER YOUR QUARTER END IS USUALLY IT'S WITHIN IT AFTER IT IT DEPENDING ON THE TIMING OF THOSE MEETINGS THAT ARE SCHEDULED, BUT GENERALLY, YOU SHOULD GET THOSE QUARTERLY AS WELL.

>> IS THE ACADEMY ALLOWED TO CO-MINGLE ITS FUNDS WITH TOWN? I THINK THERE'S A REFERENCE HERE THAT IT HELD, I THINK MAXIMUM BALANCED ABOUT ONE AND A HALF MILLION AGAINST 42,000,043, THE TOWN IT'S NOT CLEAR HOW THOSE WERE SPLIT OUT, BUT CAN THEY COMMINGLE?

>> THE FUNDS THEMSELVES ARE ACCOUNTED FOR AND COMPLETED SEPARATELY, THE TOWN OF WESTLAKE AND WESTLAKE ACADEMY IT'S A UNIQUE SET-UP.

THERE IS A SHARED PARTNERSHIP THERE IN TERMS OF THAT COLLATERAL, ESPECIALLY IN MAKING SURE THAT'S COVERED IN SO FAR AS I CAN TELL, THERE'S NO ISSUES WITH THAT BECAUSE IT IS COVERING BOTH AND IT'S NOT COVERING THE TOWN, AND THEN THE ACADEMIES IS PIGGYBACKING OFF THE TOWN.

IT'S THAT THEY'RE COVERING BOTH.

>> I JUST WANT TO GIVE YOU A FEW FINANCIAL HIGHLIGHTS, SO FINISHERS FOR 2020 TO A TOTAL OF 11.6.

THAT IS 1.8 MILLION OR 18 PERCENT INCREASE FROM THE PRIOR YEAR.

A FEW ITEMS THAT SAW THE BIGGEST SHIFT FOR YEAR OVER YEAR, SO THE INSTRUCTION COSTS INCREASED BY A LITTLE OVER ONE MILLION OR NINETEEN PERCENT PRIMARILY DUE TO IT BEING REALIGNED IT WAS DOWN FOR THE PREVIOUS YEAR DUE TO A LOT OF THE REMOTE LEARNING FROM COVID, THE INSTRUCTIONAL AND SCHOOL LEADERSHIP INCREASE AS WELL, 343,000 OR 26 PERCENT.

THIS IS ALSO DUE TO COVID RECOVERIES AND THE CHANGE IN THE HEAD OF SCHOOL AS WELL.

STUDENTS SUPPORT SERVICES SAW AN INCREASE THERE OF 188,000, 18 PERCENT.

THIS IS DUE PRIMARILY TO THE EXTRA CURRICULAR ACTIVITIES, THOSE KICKING BACK OFF IN 2022 AS THEY WERE NOT, OCCURRING IN THE PREVIOUS YEAR.

THEN BEHIND AFTER THAT IS DEBT SERVICE INCREASE OF 106,000, WHICH IS 51 PERCENT INCREASE FROM THE PREVIOUS YEAR, AND THEN THAT'S DUE TO THE CLOSEOUT COST OF THE PREVIOUS EQUIPMENT LEASE.

ALL OTHER AREAS FOR EXPENDITURES WERE RELATIVELY CONSISTENT YEAR-OVER-YEAR.

>> ON THE SCHOOL LEADERSHIP, I BELIEVE FINANCE STAFF HAD OPINED THAT WE NEEDED TO ACCOUNT FOR THE INCREASED COST OF OVERLAPPING AND [OVERLAPPING]

>> [NOISE].

>> ME OR HIM?.

>> SORRY I CAN'T HEAR.

STAFF HAD A PINE THAT IT NEEDS TO BE ACCOUNTED FOR IT AND I GUESS MANAGEMENT DECIDED NOT TO DO THAT.

ON THOSE THINGS, I GUESS, WEIRD BRACE OUR OLD SUPERINTENDENT HERE FOR THREE MORE MONTHS THAN WE THOUGHT IT WAS, AND SO WE INCURRED ANOTHER 40,000 TO 50,000 DOLLARS AND FEES IN THAT, IS THAT SOMETHING YOU LOOK AT IN A PART OF YOUR CONTROLS TO SAY LIKE, HI, YOU SHOULD PLAN FOR THIS OR?

>> NOT REALLY. EVERYONE CAN HAVE THEIR OWN PERSONAL OPINION ON THINGS AS THEY SEE, THINGS OCCUR WITHIN THE FINANCES AND TIMING OF THINGS.

BUT IT CAN BE REALLY HARD TO PREDICT SOME OF THESE.

THAT MAY HAVE BEEN SOMETHING THAT YOU COULD HAVE PREDICTED. [OVERLAPPING]

[00:45:02]

>> WE HAVE A RECRUITING FIRM THAT WE WORK FOR SIX MONTHS [NOISE] AND IS COMMON.

>> LOOKING AT THAT BUDGET AMENDMENT, THOSE ARE GOOD THINGS LIKE ANYTIME I SEE A BUDGET AMENDMENT, I'M ALRIGHT, GREAT THESE FOLKS ARE PAYING ATTENTION REGULARLY TO SEE WHAT'S HAPPENING.

WHAT DO WE NEED IT TO LOOK AT POTENTIALLY CHANGING, SO FROM THAT PERSPECTIVE, THAT'S SOMETHING THAT I CONSIDER.

THERE WERE BUDGET AMENDMENTS MADE, AT LEAST ONE DURING THE YEAR.

>> IT WAS DONE AT THE END BY US.

[LAUGHTER]

>> WHEN THERE'S PERSONNEL CHANGES LIKE THAT.

I GUESS THAT ONE WAS A LITTLE BIT MORE FORESEEN AND SO IT WASN'T LIKE I DROPPED THE HAT LIKE, WE NEED TO FIGURE SOMETHING OUT SO IT MAY, SOUND SOMETHING THAT WE GENERALLY WOULD COMMENT ON FROM A HERE'S A LETTER.

WE ADDED THAT AS A COMMENT STANDPOINT.

>> SURE.

>> I'M HOPING TO CONSIDER I WOULD SAY I THINK LEARNING LIKE WHEN YOU LOOK AT YOUR BUDGET, AT YOUR YEAR-TO-YEAR COMPARISON, I FIGURED OUT WHY THAT WAS HIGHER IN THAT AREA KNOWING THAT FOR YOU ALL TO KNOW LIKE WHO WILL IN THE FUTURE, HOW CAN WE DO THIS, SOMETHING LIKE THIS.

>> WE GET GRADED ON THIS BY TEA, THEY LOOK AT IT, OUR FUNCTION CODE TO SAY HOW MUCH IS GOING TO TEACHING, HOW MUCH IS GOING TO MANAGEMENT AND HOW MUCH IS GOING.

IT'S NOT A SMALL DETAIL, IT BECOMES A PART OF OUR GRADE TEA OF HOW EFFECTIVELY WE'RE DELIVERING EDUCATION.

>> BUT DO WE DO WE GET GRADED ON VARIANCES, THE BUDGET?

>> YES. THERE ARE CERTAIN PORTIONS.

>> MARLENE, DON'T WE GET A VARIANCE OF MORE THAN 10 PERCENT WE HAD TO EXPLAIN IT.

>> YEAH. LOOK, TO ME, THAT'S EASILY EXPLAINED.

>> NO, I KNOW IT IS, BUT IT JUST OVERALL ACCOUNTING.

>> YEAH.

>> GOOD BUSINESS PRACTICES TO DO AS YOU GO ALONG.

>> WELL, THE VARIANCE ANALYSIS.

>> YEAH. ALL RIGHT, SORRY, CONTINUE.

>> YEAH. SURE.

>> THIS IS JUST A GRAPHIC TO GIVE YOU A LITTLE YEAR-TO-YEAR COMPARISON ON THE SUMMARIZED VERSION OF FINANCES.

LOOKING AT YOUR REVENUES FOR YOUR GOVERNMENTAL FUNDS, SO GOVERNMENTAL FUNDS REVENUES FOR 2022 TOTALED 10,532,000 OR FIVE PERCENT INCREASE SINCE THE PRIOR YEAR.

GIVING YOU A LITTLE COMPARISON YEAR OVER YEAR THERE, OVERALL UP BY FIVE PERCENT.

A LOT OF THAT'S DUE TO THOSE CHANGES THAT WE'VE TALKED ABOUT IS FOR COVID AND THE TIMING OF A LOT OF GRANTS WERE DOWN THE PREVIOUS YEAR, THE FUNDING BECAUSE OF COVID.

WE SEE FIVE PERCENT IS PRETTY COMMON TO SEE A SWING OF THAT NATURE.

PRETTY CONSISTENT WITH WHAT WE WOULD GET, NOTHING OUT OF THE ORDINARY.

THEN LOOKING AT THE GENERAL FUND BALANCE, THE GENERAL FUNDS HAD AN OVERALL DECREASE OF 360,000 DURING THE YEAR.

ANY BALANCES, 1.7 MILLION.

THIS REPRESENTS 16.4 PERCENT OF THE FISCAL YEAR 2022 GENERAL FUNDING.

WHY THAT MATTERS AND WHY WE LOOK AT THAT, A LOT OF IT IT'S EASY TO LOOK AT HOW FAR WOULD YOU GO TO OPERATE INTO THAT.

YOU WEREN'T RECEIVING ANY MORE FUNDS FROM A GENERAL FUND STANDPOINT, HOW FAR WOULD YOU BE ABLE TO GO AND IF EXPENSES WERE RELATIVELY CONSISTENT FROM THE PREVIOUS YEAR, BE ABLE TO GO ABOUT A LITTLE OVER TWO MONTHS OR SO WITHOUT RECEIVING.

JUST ONE OF THE THINGS THAT YOU LOOK AT IS THE HEALTH INDICATOR.

A LOT OF PEOPLE WILL RECOMMEND YOU HAVE AT LEAST 60 DAYS OR TWO MONTHS, SO YOU EXCEED THAT. THAT LOOKS GOOD.

>> THE RULE IS 45 DAYS. IS THAT CORRECT?

>> SORRY.

>> THE RULE'S 45 DAYS AFTER.

>> INTERNAL POLICY IS 45 DAYS.

A LOT OF YOU WILL RECOMMEND 60.

>> I AGREE.

>> YEAH. THEN FUND BALANCE, OUR GENERAL FUNDS BUDGET RESULTS FOR THE ACADEMY, OVERALL, IT WAS A NEGATIVE BUDGET VARIANCE OF 297,000.

YOUR REVENUES EXCEEDED THE BUDGET AMOUNT BY 154,000.

YOUR EXPENDITURES WERE OVER BY 451,000 AND TOTAL AND SO OVERALL HAVING A NEGATIVE BUDGET VARIANCE OF 290.

>> DO WE HAVE A BREAKDOWN OR AN ACCOUNTING OF WHAT THOSE VARIANCES WERE?

>> YEAH. THERE'S A LOOK ON PAGE OF THAT REPORT.

IT'S IN THE BACK SECTION OF THE REPORT.

>> YEAH. PAGE 64. I MEANT EVEN MORE SO WHAT I'M TRYING TO UNDERSTAND IS THE BUDGETARY INFORMATION ON PAGE 67 TALKS ABOUT HOW BUDGET APPROVAL WENT.

I THINK THIS IS SOMETHING I'M JUST TRYING TO GET MY HEAD AROUND.

THEY SAID ONCE A BUDGET IS APPROVED, IT CAN ONLY BE AMENDED AT THE OBJECT BY THE STAFF.

[00:50:01]

FUNCTION AND FUND LEVEL MUST BE AMENDED BY APPROVAL OF THE MAJORITY OF THE MEMBERS.

I THINK WHAT I'M TRYING TO GET AT IS WHAT WERE THE VARIANCES DURING THE YEAR AND HOW CAN WE UNDERSTAND WHAT DID THE BOARD APPROVE IN TERMS OF WHAT THOSE APPROVED BUDGET CHANGES WERE AND WHAT WERE DISCRETIONARY. YOU HAVE THAT INFORMATION.

>> I DO.

>> YEAH. I THINK THAT WOULD BE REALLY HELPFUL BECAUSE DID YOU TEST THAT FROM A SYSTEMS AND CONTROLS PERSPECTIVE AS TO WHETHER ALL VARIANCES WERE PROPERLY APPROVED BY THE BOARD?

>> WE TESTED TO ENSURE THAT THE BUDGET IS CONSISTENT WITH WHAT'S BEEN ADOPTED AND ANY AMENDMENTS WERE CONSISTENT WITH WHAT'S ADOPTED.

>> OKAY.

>> ONCE THOSE WERE ADOPTED, THOSE ARE THE NUMBERS WE GO BY.

WE ENSURE THAT WHAT'S BEING REPORTED IS CONSISTENT WITH WHAT THE BOARD HAD APPROVED.

>> RIGHT. BECAUSE IGNORING THE NET CHANGE, OBVIOUSLY BECAUSE THERE'S BENEFITS FROM REVENUE, EXPENDITURES MOVED BY FOUR AND A HALF PERCENT.

I'M JUST TRYING TO GET A FEEL FOR WHAT, THIS WAS A BUDGET THAT WAS A PART OF US.

I'M TRYING TO UNDERSTAND IS WHAT WAS THE ACTUAL DIFFERENCE BETWEEN WHAT WAS APPROVED BY THE BOARD, WHAT WAS ACTUALLY SPENT, HOW MUCH OF THAT CAME BACK FOR FURTHER APPROVAL, AND HOW MUCH WASN'T REQUIRED.

OBVIOUSLY MAKING SURE THERE'S NO GAPS BETWEEN.

>> YEAH. WE HAVE THE DATA FROM THEM.

>> ALSO ON THE PAGE, WELL, AND EVERY MD YOU WILL SEE SEVERAL BREAKDOWNS.

THE DIFFERENCES, VARIANCES.

>> YEAH, BUT THAT'S FOR YEAR OVER YEAR.

>> YEAH. THAT'S FOR YEAR OVER YEAR.

>> YEAH. I'M LOOKING MORE FOR THE BUDGET VERSUS.

>> YEAH. I'M NOT SURE IF THE PREVIOUS BOARD ADOPTED A BUDGET BASED ON COMPARING TO THE PRIOR YEAR.

A LOT OF BOARDS DO, LIKE WHAT HAPPENED LAST YEAR.

BUT I THINK LAST YEAR THERE WAS A LOT OF COVID STUFF GOING ON STILL AND SO THERE WOULD'VE BEEN CERTAINLY SOME CASH.

>> I JUST FEEL LIKE THAT'S PROBABLY A CRITICAL PIECE BECAUSE WE SPENT AN ENORMOUS AMOUNT.

WE DID THIS THE PAST YEAR APPROVING A BUDGET.

THEN WE LET IT RUN IN THE WILD.

THIS IS OUR CHECKS AND BALANCES AUDIT.

BUT UNLESS WE CAN TAKE THE BENEFIT OF THE AUDIT AND GO BACK AND RECONCILE IT TO THE BUDGET.

>> YEAH, ABSOLUTELY. YEAH. I KNOW THERE'S PLENTY OF BOARDS AND COUNCILS THAT ALL PRESENT TO YOU THAT DON'T CARE ABOUT ANY OF THIS STUFF.

THEY GO STRAIGHT TO THE BUDGET TO SEE, WELL, WHAT WOULD THAT LOOK LIKE? IT'S OBVIOUSLY A HELPFUL MEASUREMENT FOR HOW DO WE COMPARE TO WHAT WE EXPECTED.

HAVING REGULAR REOCCURRING BUDGET TO ACTUAL COMPARISON TO WHERE WE ARE AND WHAT WE EXPECT.

>> BUT THAT'S THE ULTIMATE GOVERNANCE QUESTION.

BECAUSE YOU'RE APPROVING WHAT CAN BE SPENT AND YOU'RE TESTING WHETHER THOSE GUIDELINES WERE MAINTAINED.

IT'S HARD FOR US WITHOUT THAT INFORMATION TO KNOW.

>> YEAH. WITH THAT, IF YOU GUYS HAVE ANY OTHER QUESTIONS.

>> ANY OTHER QUESTIONS? WELL DONE.

THANKS. ALL RIGHT, HE HAD ASKED SOME MISSING FORMS INTO THEM BEFORE WE MOVE ON TO THE NEXT THING.

SOME OF THE PEOPLE AT THE SIGN-OFF ON FORMS FOR DISCLOSURE.

>> IF YOU GOT THE DISCLOSURE QUESTIONNAIRES FOR THE BOT, SO I'VE GOT COPIES. YOU GUYS HAVE TO FILL OUT.

>> WAS THAT NOT WHAT WE RETURNED?

>> YEAH. SOME RETURNED, SOME DID NOT.

IF YOU DIDN'T RETURN IT, IF YOU GUYS CAN TAKE THIS SECOND ONE.

>> NO. WE'RE GOOD.

>> JUST FOR FOLKS THAT DIDN'T GET THE OPPORTUNITY TO FILL THEM OUT. YOU GUYS DO IT.

>> I'VE GOT, THERE WAS A COUPLE MISSING.

>> OKAY. LET'S JUST GET IT DONE HERE.

IS THIS A MOTION TO APPROVE OR A MOTION TO ACCEPT? OKAY. CAN I GET A MOTION TO APPROVE RESOLUTION 2301, APPROVING THE FISCAL YEAR 21/22 ANNUAL AUDIT REPORT WITH BROOKS WATSON. AT FIRST.

>> I'LL MAKE A MOTION.

>> MOTION CARRIES. ALL RIGHT. THANK YOU.

>> THANK YOU-ALL. I APPRECIATE YOUR TIME.

I WANTED TO JUST GIVEN THE TIMING OF EVERYTHING.

NOW, THEY DROVE US IN THE QUESTION, BUT I WILL SAY THESE FOLKS WHO HAVE BEEN WORKING THEIR TAILS OFF TO GET THIS STUFF FOR THE AUDIT.

>> DEBBIE, MARLENE, THANK YOU.

>> THANK YOU VERY MUCH.

>> THANK YOU SO MUCH.

>> I APPRECIATE IT.

[D. CLOSED EXECUTIVE SESSION (3:00 P.M.)]

>> ALL RIGHT. THAT CONCLUDES OUR PRE-PUBLIC PORTION OF THE MEETING.

WE HAVE A CLOSED EXECUTIVE SESSION AND WE'RE CLOSING OUT AT 03:24. I THANK YOU VERY MUCH.

>> WHAT?

[00:55:03]

>> YOU WANT TO SAY ADJOURNMENT? THE EXECUTIVE SESSION IS TOWN COUNCIL WILL CONDUCT A CLOSED SESSION PURSUANT TO TEXAS GOVERNMENT CODE ANNOTATED CHAPTER 551, SECTION 551.07, ALPHA-1, DELIBERATION REGARDING PERSONAL MATTERS TO DELIBERATE THE APPOINTMENT, EMPLOYMENT EVALUATION, REASSIGNMENT DUTIES OF PUBLIC OFFICER, TOWN MANAGER.

WE WILL ADJOURN TO EXECUTIVE SESSION.

[NOISE]

* This transcript was compiled from uncorrected Closed Captioning.

A. CALL TO ORDER (2:30 P.M.)

C.1. WA RES 23-01 Consider approving Resolution 23-01 approving the Fiscal Year 2021-2022 Annual Audit Report from BrooksWatson & Co., PLLC; and take appropriate action

D. CLOSED EXECUTIVE SESSION (3:00 P.M.)

Jan 23, 2023 Special Town Council

A. CALL TO ORDER (2:30 P.M.)

C.1. WA RES 23-01 Consider approving Resolution 23-01 approving the Fiscal Year 2021-2022 Annual Audit Report from BrooksWatson & Co., PLLC; and take appropriate action

D. CLOSED EXECUTIVE SESSION (3:00 P.M.)

Link

Social

Embed

Download

Download Selected Item