[00:00:10]
I CALLED THIS MEETING OF THE BUTTE COUNTY BOARD OF EDUCATION, NOVEMBER 12 FINANCE COMMITTEE MEETING TO ORDER.
UM, LET'S PLEASE STAND FOR THE PLEDGE OF ALLEGIANCE.
I PLEDGE ALLEGIANCE TO THE FLAG UNITED STATES OF AMERICA.
IT STANDS ONE NATION UNDER GOD.
I'M HAVING AUDREY JUST, UH, JOINED AND I'M HAVING PROBLEMS RIGHT QUICK.
SO I HAVE TO GET OUT AND COME BACK IN.
AND YOU LET US KNOW WHEN YOU'RE READY.
I HAVE TO GO BACK INTO GORE DOCS.
CAN WE PROCEED WITH THE MEETING OR WOULD YOU PREFER US TO PAUSE TEMPORARILY? CAN YOU PAUSE FOR A MOMENT? CAUSE I CAN'T TAKE ANY MOTIONS OR ANYTHING AT THE MOMENT.
FOR THOSE WATCHING, WE ARE JUST PAUSED.
UM, HAVING SOME TECHNICAL DIFFICULTIES, WE WILL BEGIN THE MEETING IN JUST A MOMENT.
WHEN YOU WERE HAVING ISSUES WITH BOARDEX, I AM CAN'T.
YOU MIGHT WANT TO GO AHEAD AND JOIN.
CAUSE IT'S NOT LETTING ME LOG BACK IN.
CAN YOU GET IN I'M IN, BUT IT'S NOT LETTING ME LAUNCH.
DID YOU ALREADY DO THAT? I HAD LAUNCHED IT AND THEN I'VE LOST CONNECTION.
SO IT'S NOT LETTING ME BACK IN AND IT'S NOT LETTING ME DO ANYTHING.
ARE YOU ALL, ARE YOU ALL ABLE TO BE LOGGED IN INTO BOARD DOCS? YES WE DID.
SO ROBIN, WHAT THAT MEANS FOR US HERE IS UNTIL YOU GET INTO BOARD JOBS, WE WON'T BE ABLE TO PROJECT DOCUMENTS ON TO THIS SCREEN PER VIEWERS.
I CAN PROJECT IT FROM SCREENED.
UM, I JUST WON'T BE ABLE TO SHOW THE MOTIONS AND STUFF, BUT I CAN PRINT.
I THINK WE'LL NEED TO SEE THE MOTIONS.
LET'S GIVE IT A FEW MORE MINUTES IF WE CAN.
I CAN SHOW YOU THE, I CAN SHOW YOU THE DOCUMENTS.
ARE YOU LOGGED IN ROBIN? UM, IT WON'T LET ME GO ONTO HIS, JUST THE SITES AND I FOUND, SO IT DOESN'T EVEN LET ME GET INTO LOG IN OR LOG OUT.
SO, I MEAN, I CAN'T EVEN GET TO THE SITE TECH SUPPORT THEY CAN ASSIST.
[00:05:02]
I'M SORRY.I HAVE TO TURN MY SYSTEM COMPLETELY OFF.
I'M GONNA CHECK, CHECK YOUR EMAIL REAL QUICK AND SEE IF THAT LINK WORKS, PLEASE.
FOLKS AGAIN, THOSE OF YOU TUNING IN, WE'RE HAVING A VERY HORRIBLE DIFFICULTIES RIGHT NOW.
WE'LL WE'LL BEGIN OUR MEETING IN A FEW MINUTES.
I'M TRYING TO GET IN NOW, MOLLY.
SHOULD I REJOIN IT OR LAUNCH IT AGAIN? WATCH AGAIN FOR THOSE VIEWING IS THE NOVEMBER 12TH VIEW PER COUNTY BOARD OF EDUCATION FINANCE COMMITTEE MEETING.
WE ARE CURRENTLY EXPERIENCING SOME TECHNICAL DIFFICULTIES, BUT WE WILL BEGIN OUR MEETING SHORTLY.
YEAH, YOU'RE ALL SET ALL SYSTEMS GO.
UM, COMMITTEE MEMBERS, WE NEED A MOTION TO APPROVE TODAY'S AGENDA.
ANY DISCUSSION ON TODAY'S AGENDA, SEEING NONE ALL IN FAVOR.
HI, UH, MRS. CUSHING BARRY, LET US KNOW THAT WE HAVE NO PUBLIC COMMENTS, UH, THIS AFTERNOON.
IS THAT CORRECT, ROBIN? THAT'S CORRECT.
DO WE HAVE A MOTION TO APPROVE THE OCTOBER EIGHT 2020 FINANCE COMMITTEE MEETING MINUTES? IS THERE ANY DISCUSSION? ALL IN FAVOR? AYE.
MOVING ON TO OUR FIRST TOPIC FOR TODAY'S MEETING, UM, UH, JUST A LITTLE BACKGROUND, UH, FOR THE PUBLIC AT THIS PAST TUESDAY'S BOARD MEETING, UH, THE BOARD DIRECTED THE FINANCE COMMITTEE TO REVIEW, UM, AN EXPANDED SCOPE AND AMENDMENT.
IF YOU WILL, TO THE CURRENT AUDIT, UM, CONTRACT WE HAVE WITH JACK JACK, AND IT WAS BASED ON A RECOMMENDATION, UM, COVERED IN THE REPORT.
UM, DURING THE COURSE OF OUR ENGAGEMENT, WE WERE PROVIDED INFORMATION WHICH RAISED ADDITIONAL RISKS TO BE ADDRESSED BY THE BOARD OF EDUCATION.
UH, SINCE THIS ADDITIONAL INFORMATION WAS NOT WITHIN OUR ORIGINAL SCOPE OF WORK, WE WILL PROPOSE AN AMENDMENT TO OUR ENGAGEMENT IN A FUTURE EXECUTIVE MEETING TO ADDRESS THESE RISKS.
NOW, OF COURSE IT WAS THE BOARDS WELL TO DIRECT THE FINANCE COMMITTEE TO DO THIS.
AND THAT'S WHY WE'RE HERE TODAY.
UM, WE HAVE WITH US FROM THE JAG FROM AUDREY, UM, HO HOW TO MEET, HOW TO MEAL.
AND, UM, AUDREY, IF YOU WOULD, I HAVE SUPPLIED THE, UH, DRAFT, UH, AMENDMENT THAT YOU PROVIDED AT TODAY'S BOARD MEETING AND BOARD DOCS.
THANK YOU, ROBYN, REPLACING THAT IN THERE FOR US.
AND I THOUGHT THAT MIGHT BE A GOOD PLACE TO BEGIN TODAY FOR THE COMMITTEE'S REVIEW OF WHAT THAT SCOPE MIGHT LOOK LIKE.
[00:10:05]
OKAY.UM, PROVIDE FORENSIC AUDIT PROCEDURES.
LET'S MAKE THAT PLURAL, IF WE COULD, UH, ON THE DISTRICT TAX ANTICIPATION NOTES, UM, AND SCAPEGOAT TRANSACTIONS, UH, AND RELATED ACCOUNTS FROM JULY ONE, 2015 THROUGH JUNE, JUNE 20TH, 2020, AUDREY, JUST OUT OF CURIOSITY, THAT PROPOSED SCOPE, ROUGHLY HOW LONG WOULD IT TAKE TO COMPLETE A TASK LIKE THAT? WE THINK THAT EVEN WITH ADDING THE TWO ADDITIONAL YEARS TO GET COVERAGE IN HISTORY, THAT IT WOULD TAKE US APPROXIMATELY THE SAME AMOUNT OF TIME THAT WE HAD ON THE OTHER ENGAGEMENT.
SO SAME P ONLY I WAS GOING TO REQUEST JUST WITH HOLIDAYS AND EVERYTHING THAT WE'D BE GIVEN MORE THAN 30 DAYS.
UM, BUT WE'RE FLEXIBLE WITH THAT TOO.
IF YOU FEEL YOU NEED AN ANSWER, UH, BEFORE YEAR END OR, YOU KNOW, WHATEVER YOU FEEL IS REASONABLE UNDERSTOOD.
UM, AND I DON'T KNOW THAT THE DURATION OF THE PROJECT REALLY FALLS WITHIN THE SCOPE DEFINITION.
UM, THE BOARD MAY EVEN, UH, WHEN PRESENTED WITH A RECOMMENDATION OUT OF COMMITTEE SUGGESTED NOT TO EXCEED A DOLLAR AMOUNT, UH, WHICH HAPPENED FOR THE ORIGINAL AUDIT.
SO, BUT AGAIN, THOSE AREAS DON'T REALLY FALL WITHIN THE SCOPE.
WE'RE REALLY JUST DISCUSSING THE SCOPE TODAY NOW, DR.
I KNOW MR.
I'M NOT CERTAIN HOW MUCH OR HOW LITTLE INPUT YOU'LL HAVE TODAY.
UM, BUT RACHEL, UM, I'M GOING TO LOOK TO YOU FOR ANY INPUT THAT YOU MIGHT HAVE AT THIS TIME.
YEAH, I HAD JUST RAISED MY HAND CAUSE I DO HAVE A, A COUPLE OF COMMENTS, UM, SUGGESTIONS AND THINGS LIKE THAT.
UM, I AM APPREHENSIVE ABOUT USING A VERBATIM SUGGESTED SCOPE JUST BECAUSE IT WAS, UM, MY UNDERSTANDING BASED ON SOME OF THE COMMENTS FROM FELLOW BOARD MEMBERS THAT THIS MIGHT REQUIRE GOING OUT FOR BID OR FOR RFP ON THIS.
SO, UM, I'M HESITANT TO USE THAT LANGUAGE VERBATIM.
UM, I WOULD ALSO LIKE TO SUGGEST THAT BASED ON OUR QUARTERLY FINANCE REPORT THAT TANYA HAS LATER ON IN OUR MEETING, UM, I NOTE THAT THERE ARE SOME ANTICIPATED PAYMENTS ON THOSE TANS COMING IN.
UM, AND WE WOULD HAVE MORE INFORMATION BY JANUARY, 2021 ON THOSE.
SO I ACTUALLY WOULD PREFER TO SEE THE, THE DATE THAT IS IN THIS SUGGESTED SCOPE, UM, EXPANDED OUT TO INCLUDE THAT.
UM, SO PAST DUE JUNE 30TH, 2020 THROUGH THE END OF THIS YEAR, UM, YOU HAVE, UH, UH, A MOTION THAT WOULD ADD THAT LANGUAGE TO THIS DRAFT SCOPE.
UM, I COULD, YEAH, I COULD ADD THAT, UM, THROUGH, HANG ON, I HAVE TO PULL UP THAT QUARTERLY REPORT REAL QUICK.
UM, AND PERHAPS TANYA COULD HELP ME ON THAT DATE OF WHAT WOULD BE MOST APPROPRIATE WHEN SHE ANTICIPATES GETTING, UM, THAT FULL INFORMATION, BUT IT BELIEVE IT WAS IN THE QUARTERLY REPORT HERE.
ONE MOMENT SEE REPAID BY THE END OF JANUARY, 2021 WITH PROCEEDS FROM DECEMBER AND JANUARY TAX COLLECTIONS.
SO, UM, IF I MAY, UM, THE TAX DEADLINE HAS SINCE BEEN EXTENDED TO FEBRUARY 15TH, SO WE MAY NEED A LITTLE EXTRA TIME, UH, FOR THE PAYMENT REPAYMENT.
UM, WE MAY STILL BE ABLE TO PAY THE, DEPENDING ON THE TAX COLLECTIONS.
I AM NOT CERTAIN THAT JANUARY 31ST WOULD ALLOW FOR THE FULL PAINT REPAYMENT, BUT, UM, JUST, I WANT TO JUST HAVE SOME FLEXIBILITY FOR THE FEBRUARY 15TH DEADLINE.
SO, TANYA, IN YOUR PROFESSIONAL OPINION, WHAT DO YOU THINK WOULD BE INAPPROPRIATE DEADLINE THEN BASED ON THAT EXTENSION? UM, FEBRUARY 15TH WOULD BE THE, UM, FOR SURE WE WOULD BE PAID, HAVE PAID BACK THE PROCEEDS BY THEN.
[00:15:01]
UH, I MOVE THAT WE EXTEND THE DATE, UM, IN THIS SCOPE TO BE FEBRUARY 15TH, 2021.UM, AND I BELIEVE THAT WOULD ALSO KIND OF ADDRESS IN A SENSE THE GETTING THROUGH THE HOLIDAYS AS WELL AS MISS.
MY LAST NAME IS HORRIBLE ALSO.
SO YOUR LAST NAME IS NOT HORRIBLE.
UM, SO I THINK THAT KIND OF ADDRESSES THAT IF WE COULD EXTEND THAT OUT LATER, UM, I'LL SECOND FOR DISCUSSION.
AND IF YOUR ANYBODY ELSE'S FEEDBACK ON, ON THAT, BUT I'M JUST BASING THAT ON THE INFORMATION THAT'S IN OUR QUARTERLY FINANCIAL REPORT.
IS THIS WHAT THE MOTION IS USING FEBRUARY 15TH DATE? UM, WELL I ASSUME THAT THERE WILL BE ADDITIONAL CHANGES TO THIS SCOPE.
UM, BUT LIKE RACHEL, IS YOUR MOTION TO REVISE THE DRAFT SCOPE.
I JUST WANTED TO KNOW BE ON THE RECORD THAT I DO, UM, HAVE AN ISSUE WITH USING A VERB OR VERBATIM SCOPE.
AND, AND I AM HOPEFUL THAT THE FINANCE COMMITTEE IS GOING TO CHANGE IT BEYOND JUST THE STATE.
UM, SO YES, I WOULD LIKE TO MODIFY THE SCOPE SHOULD PROBABLY READ ON THE TITLE, SUGGESTED SCOPE OF WORK BY FINANCE COMMITTEE.
UM, AND SO IF WE SLOW DOWN MOTION TO MODIFY THE SCOPE OF WORK BY FINANCE COMMITTEE TO STATE THAT USE THE WORDS, THAT'S HERE, USE THE WORDS THAT ARE THERE.
UM, BUT EXTEND THE DATE TO FEBRUARY 15TH, 2021.
WHO'VE BEEN ON HIS SEPARATE COMPUTER RIGHT NOW.
I LET ME KNOW WHEN YOU HAVE THE MOTION UP, HAD THE MOTION UP AND JOANNE YOU SECOND IT, HOLD ON.
I'M JUST WAITING TO SEE THE MOTION BEFORE WE BEGIN DISCUSSION.
SO THE MOTION, HE HAS MOTION TO MODIFY THE SCOPE OF WORK BY FINANCE COMMITTEE TO STATE PROVIDE FORENSIC AUDIT PROCEDURES ON THE DISTRICT TAX ANTICIPATION NOTE AND SCAPEGOAT TRANSACTIONS AND RELATED ACCOUNTS FROM JULY ONE, 2015 THROUGH FEBRUARY 15, 2021, UM, TAX TAX ANTICIPATION NOTE SHOULD BE POOR OVER ROBYN.
JUST PUT AN S ON THE END THERE.
FIRST ISSUE IS I BELIEVE ACCORDING TO STATE PROCUREMENT CODE, UH, THIS SCOPE OF WORK CANNOT BE DONE AS AN AMENDMENT TO THE EXISTING CONTRACT BECAUSE IT GOES BEYOND THE SCOPE OF THE ORIGINAL CONTRACT.
AND IF EVEN IF IT WAS WITHIN THE SCOPE, A ADDENDUM CAN NOT BE MORE THAN 10% OF THE ORIGINAL VALUE OF THE FIRST CONTRACT.
SO THAT WOULD MEAN IT WOULD ONLY BE ABLE TO SPEND ON AN AMENDMENT $1,500.
AND I DOUBT THAT THIS WOULD COST, BUT $1,500.
[00:20:01]
NOW, UH, YOU CAN GET, UH, LEGAL OPINIONS ON THIS.UH, THIS IS WHAT I UNDERSTAND, BUT I DO NOT BELIEVE THAT, UH, WE CAN HAVE, UH, THIS FIRM, UH, DO THIS WORK FOR US UNDER STATE PROCUREMENT CODE RESTRICTIONS.
SECONDLY, I WILL NOT SUPPORT A ADDITIONAL FORENSIC AUDIT UNLESS I SEE PROBABLE CAUSE FOR THAT.
AND I HAVEN'T YET TO SEE PROBABLE CAUSE THAT WOULD DEMAND A FORENSIC AUDIT.
SO THOSE ARE MY TWO OBJECTIONS AND I'M CHAIR.
UM, SO I DON'T WANT TO DEVIATE FROM THE SCOPE, UH, DISCUSSION, BUT I WILL SAY THAT THE, UM, THE ENGAGEMENT LETTER DOES ALLOW FOR THAT WAS SIGNED ON SEPTEMBER 21ST.
UM, IT SAYS IF THE NEED FOR ADDITIONAL SERVICES ARISES, OUR AGREEMENT WITH YOU WILL NEED TO BE REVISED.
AND THIS WAS AGREED UPON BY THE CHAIR WHEN THAT DOCUMENT WAS SIGNED.
UM, NOW THE BOARD DID NOT VOTE ON THAT, UH, ENGAGEMENT LETTER, BUT IT IS A SIGNED DOCUMENT, NONETHELESS.
SO I'M NOT SURE WHAT RELEVANCE THAT HAS TO THE REMAINDER OF THE SCOPE DISCUSSION.
UM, I THINK IF WE WANT TO ANALYZE OUR PROCUREMENT PROCEDURES IN REGARD TO AMENDING CONTRACTS, I WOULD SAY THAT'S A SEPARATE, UH, AGENDA ITEM.
THAT'S NOT ON OUR, UH, COMMITTEE AGENDA THIS EVENING.
UM, IT WAS THE BOARDS WILL, UH, AND WE VOTED TUESDAY EVENING TO SEND THIS TO THE FINANCE COMMITTEE.
I'M NOT CERTAIN WHY THE BOARD WOULD DIRECT ONE OF ITS COMMITTEES TO DO THIS, IF IT WERE NOT PERMITTED.
UH, YES, RACHEL, I THINK SOME OF THE CONFUSION MAY BE IN THE TITLE OF THIS AGENDA ITEM WHERE IT SAYS MOTION FROM NOVEMBER 10TH, BLE MEETING, DIRECTING THE FINANCE COMMITTEE TO DRAFT A SCOPE OF WORK FOR THE AUDIT AMENDMENT.
THE ACTUAL MOTION DID NOT REFERENCE THE AUDIT AMENDMENT.
THE MOTION FROM THE NOVEMBER 10TH MEETING STATED I MOVED THAT THE BOARD DIRECT THE FINANCE COMMITTEE TO DEVELOP A SCOPE OF WORK AROUND THE ADDITIONAL RISK FACTORS THAT THE JAG REPORT RAISED.
SO IT DOESN'T NECESSARILY IN THAT MOTION OF NOVEMBER 10TH, SAY THAT WE ARE MAKING A SCOPE OF WORK FOR THE AUDIT AMENDMENT.
AND I THINK THAT'S WHERE THE, UH, THE HANGUP KIND OF PRESENTS ITSELF.
ALL RIGHT, ROBIN, CAN YOU DISPLAY THAT? THAT'S OBVIOUSLY NOT THE MOTION ON THE FLOOR, UM, BUT CAN YOU SHOW US JUST AS A, AS A REFERENCE, WHAT RACHEL, JUST READ THE ACTION.
THE BOARD TOOK THIS PAST TUESDAY BECAUSE IT REALLY SPELLS OUT WHAT WE'RE HERE TO DO TODAY.
UM, IT'S, IT'S TOUGH TO SEPARATE THEM BECAUSE THIS AMENDMENT, THIS EXPANDED SCOPE CAME AS A RECOMMENDATION FROM THE AUDITING FIRM.
UM, IT'S NOT SOMETHING THAT GENERATED FROM THE BOARD.
IT, IT WAS BORN OUT OF A RECOMMENDATION, UM, MAYBE WOULD NOT HAVE RECEIVED THAT RECOMMENDATION IF IT WASN'T IN THE REPORT ITSELF GIVEN TO THE BOARD, UH, WHILE ROBIN IS LOOKING FOR THAT NOTION, AUDREY, UM, IF YOU WOULD, ONCE AGAIN, JUST REPEAT FOR THOSE WATCHING WHO MAY HAVE NOT, NOT HAVE WATCHED OUR BOARD TUESDAY EVENING OR BOARD MEETING, WHAT PROMPTED YOU TO MAKE THAT RECOMMENDATION TO OUR BOARD BASED UPON THE AREAS YOU INVESTIGATED? OKAY, THANK YOU.
UM, IT IS TYPICAL DURING OUR AUDITS AND INVESTIGATIONS OF ANY SORT, UH, THAT, YOU KNOW, AS YOU GET IN THERE AND LOOK AT THINGS, UM, YOU KNOW, ADDITIONAL RISKS DO COME TO OUR ATTENTION AND ADDITIONAL, UM, AREAS THAT NEED TO BE TESTED AND LOOKED AT, COME TO OUR ATTENTION.
AND WE WANTED TO JUST BE CAREFUL, UM, WITH THE ORIGINAL, UM, WITH THE ORIGINAL SCOPE, NOT TO JUST, UM, IT'S RELATED TO THE ORIGINAL SCOPE,
[00:25:01]
BUT THERE'S STILL MORE PROCEDURES THAT NEED TO BE DONE THAT AREN'T LISTED IN THE SCOPE.SO, YOU KNOW, AND THAT'S, THAT'S UP TO YOU ALL, HOW YOU WANT TO DO THAT IN COMPLIANCE WITH YOUR PROCUREMENT CODE REGULATIONS AND DISTRICT POLICIES.
UM, LIKE I SAID, IT DOESN'T MATTER TO ME WHO MAY BE DOING THIS WORK.
IT'S, WHAT'S MORE IMPORTANT TO ME IS THAT IT IS ADDRESSED AND, UM, HOW WE SAW THOSE, UM, ADDITIONAL RISKS CAME THROUGH ANOTHER DISTRICT SITUATION WHERE THERE WAS DEFINITELY FRAUD IN A SCHEME THAT COULD HAVE BEEN IMPLEMENTED IN A SIMILAR WAY AT OTHER DISTRICTS, INCLUDING YOUR DISTRICT.
SO BUFORD COUNTY SCHOOL DISTRICT HAS, UM, A FORMER CFO THAT IS NOW ON THE SCAGELL BOARD AND, UM, HAS TAX ANTICIPATION NOTES AND B'S, AND, UM, SOME OF THE OTHER TRANSACTIONS THAT, UH, THIS OTHER DISTRICT HAD AS WELL.
SO, UH, IS SEEING THAT AND KNOWING THE WILL OF THE BOARD IN THE FIRST PLACE WAS TO LOOK AT THESE BOND ACCOUNTS AND LOOK AT THESE BOND TRANSACTIONS.
UM, THIS IS HIGHLY, UM, PARALLEL, I GUESS YOU COULD SAY, UH, TO WHAT HAPPENED AT THE OTHER DISTRICT.
AND I KIND OF APPROACH THINGS, UH, FROM JUST HAVING BEEN A BOARD MEMBER MYSELF IN THE PAST THAT I WOULD WANT THAT SIGH OF RELIEF.
SO TO SPEAK, TO KNOW THAT SOMETHING DIDN'T GO WRONG IN MY DISTRICT, UM, GIVEN IF THERE WERE RISKS AND TRANSACTIONS THAT THAT COULD HAVE BEEN IMPACTED IN A SIMILAR WAY.
UM, YOU'RE NOT GOING TO HAVE PROBABLE CAUSE UNTIL YOU ACTUALLY GET IN THERE AND A TERM WE USE IN THE WEST.
AND I DON'T KNOW IF YOU USE IT, BUT GET IN THERE AND KICK THE TIRES, RIGHT? YOU, YOU GOTTA BE ABLE TO DETERMINE IF THERE'S ANYTHING THERE OR NOT.
AND SO, UM, WE DID THAT ON THE OTHER BOND ACCOUNTS AND THANKFULLY, YOU KNOW, A HUNDRED PERCENT OF THE TRANSACTIONS TESTED WITHOUT EXCEPTIONS.
AND WE JUST HAD SOME OBSERVATIONS AND I THINK PROVIDED REAL VALUE TO THE STAFF AND TO THE COUNTY AS WELL.
UM, SO LIKE I SAID, THIS IS JUST ANOTHER AREA TO ADDRESS AND SEE IF THERE ARE ANY PROBLEMS, IF THERE'S NOT GREAT, YOU KNOW, THEN YOU HAVE REST ASSURED THAT EVERYTHING'S OKAY WITH YOUR DISTRICT.
AND THEN UNFORTUNATELY IT WOULD BE, YOU KNOW, BERKELEY AND NOT YOU.
SO THANK YOU, ANDREA, THAT, THAT GIVES EVERYBODY WHO'S WATCHING NOW SOME CONTEXT ON WHAT WAS SAID, UH, TUESDAY EVENING AT OUR BOARD MEETING.
AND THEN ALSO A LITTLE BIT OF BACKGROUND ON THE AUDIT REPORT.
UM, I MEAN, NOT TO SEE WILL SMITH, YOUR HAND IS UP.
WELL, CAN YOU HEAR ME? HE WAS MUTED.
ACTUALLY, SHE KIND OF ANSWERED MY QUESTION, THE QUESTION THAT SHE ASKED, SHE ANSWERS MY QUESTION.
SO, SO GIVEN THE, THE MOTION AND I'LL READ THAT ALOUD FOR EVERYONE WATCHING THAT WAS, UM, PUT ON THE FLOOR TUESDAY NIGHT, UH, I MADE THAT THE BOARD DIRECTOR OF FINANCE COMMITTEE TO DEVELOP A SCOPE OF WORK AROUND THE ADDITIONAL RISK FACTORS THAT THE JAG REPORT RAISED.
UM, RACHEL, YOUR POINT IS WELL TAKEN.
IT DOES NOT DETERMINE THAT, UM, WHO WILL DO THE WORK, UM, JUST TO PUT THE SCOPE IN PLACE.
UM, BUT CERTAINLY AUDREY'S PRESENCE TODAY TO PROVIDE THE BACKGROUND ON WHY WE'RE EVEN LOOKING AT AN EXPANDED SCOPE OF WORK IS, IS HIGHLY RELEVANT NOR DRIEK.
THANK YOU AGAIN FOR BEING HERE TODAY.
UM, IS THERE ANY FURTHER DISCUSSION ON THIS MOTION? AGAIN, I'LL READ THE MOTION OUT LOUD MOTION TO MODIFY THE SCOPE OF WORK BY FINANCE COMMITTEES TO STATE
[00:30:02]
PROVIDE FORENSIC AUDIT PROCEDURES ON THE DISTRICT TAX ANTICIPATION NOTES AND SCAPEGOAT TRANSACTIONS AND RELATED ACCOUNTS FROM JULY ONE, 2015 THROUGH FEBRUARY 15, 2021, ANY FURTHER DISCUSSION.UM, I WAS JUST GOING TO SAY TWO THINGS JUST BECAUSE I RECOGNIZE THAT THIS IS UNDER ITEM E WHERE IT DOES SAY ON OUR AGENDA THAT THIS IS FOR, UM, THE AUDIT AMENDMENT.
I WANT TO MAKE SURE THAT I'M CLEAR, UM, AS A BOARD MEMBER AND TO THE PUBLIC THAT I SUPPORT THIS MOTION GOING FORWARD AS PROVIDING THE INTENT OF THE NOVEMBER 10TH, UH, BOARD ACTION, WHICH WAS TO PROVIDE A SCOPE OF WORK, BUT NOT NECESSARILY IN REGARD TO THE AUDIT AMENDMENT, BECAUSE I BELIEVE THAT THERE MAY BE A BOARD WILL TO SEND THIS OUT TO RFP OR BID.
SO I JUST WANT TO MAKE SURE THAT MY, UM, INTENT IS CLEAR TO THE PUBLIC.
UM, AS WELL AS THAT, I, I DO SUPPORT THIS MOTION AND THE WAY THAT IT IS WRITTEN, BECAUSE IT DOES REFLECT RELATED ACCOUNTS.
AND THAT WAS GOING TO BE, UM, SOMETHING THAT I WOULD'VE WANTED INCLUDED IS THAT, YOU KNOW, IT'S ALL ENCOMPASSING AND NOT AS RESTRICTIVE AS JUST THE, THE SQUIGGLE AND THE TAM.
SO YOU, WELL, RACHEL EMOTION STILL DOES VERY, VERY MUCH ZERO IN ON SKATE GO IN AND THE TAXI ANTICIPATION AS YOU'RE CLEAR ON THAT.
I JUST BE STATING RELATED ACCOUNTS, MAKING SURE THAT IT'S, IT'S CHECKING THOSE AREAS THAT ARE, THAT COULD POTENTIALLY BE VULNERABILITY, SO.
UM, SO, AND AGAIN, WE ARE STEERING CLEAR OF ANY PROCUREMENT, UM, PROCESS QUESTIONS TODAY.
THEY ARE NOT ON TODAY'S AGENDA.
THAT SHOULD BE IRONED OUT ELSEWHERE.
UM, I WOULD SAY THAT RACHEL, GIVEN THE TIMEFRAME IN THIS MOTION, UM, IF THIS GOES BACK TO THE BOARD, I DON'T KNOW WHEN IT WILL BE TAKEN UP AGAIN.
UM, AND SO THESE DATES MAY OR MAY OR MAY NOT HOLD UP, UH, GIVEN THE LENGTH OF TIME BETWEEN NOW AND THE TIME THE BOARD TAKES IT UP AGAIN, UH, IN DECEMBER, UM, WHEN IS YOUR FINAL REPORT TO THE BOARD? SO I WOULD ASSUME THIS WOULD, THIS MOTION WOULD BE IN YOUR, YOUR NEXT OR YOUR FINAL REPORT AS A FINAL.
THAT'S THE ONLY BOARD MEETING HAVE IN DECEMBER.
SO DECEMBER EIGHT IS WHEN THIS WOULD, THIS MOTION WOULD BE COMING FORWARD TO THE FULL BOARD.
I WAS GOING TO SAY THAT I DIDN'T INCLUDE A, A COMPLETION DATE IN THIS SCOPE, BUT I THINK THAT IS SOMETHING THAT THE FULL BOARD DOES NEED TO DISCUSS, BUT BECAUSE IT WON'T BE UNTIL DECEMBER 8TH, THAT THIS IS DISCUSSED AT THE FULL BOARD.
I THINK THAT'S A FULL BOARD DISCUSSION.
I THINK YOU'RE IN, I'M GOING TO VOTE FOR THIS, NOT BECAUSE I AGREE WITH IT, BUT BECAUSE I BELIEVE IT GOES TO THE FULL BOARD AND AT THE FULL BOARD, I'M GOING TO WANT TO SEE PROBABLE CAUSE AND I'M ON A WANT TO SEE THAT THE PROCUREMENT CODE IS PROPERLY UTILIZED, BUT, UM, I WILL, I WILL REALLY NEED, I'LL KEEP AN OPEN MIND.
AND IF I CAN SEE PROBABLE CAUSE I'LL VOTE FOR A FORENSIC AUDIT, BUT I DO NOT BELIEVE YOU CAN GET PROBABLE CAUSE ON A CASE THAT'S STILL UNDER LITIGATION IN BERKELEY COUNTY, THAT EVIDENCE WILL NOT BE AVAILABLE TO THIS FIRM OR ANY FIRM UNTIL THE COURT HAS FOUND ITS UH, FINISHED ITS ADJUDICATION PROCESS.
SO I'M GOING TO VOTE FOR THIS, BUT I AM NOT GOING TO SUPPORT IT UNLESS QUESTIONS ARE ANSWERED IN THE FULL BOARD.
UM, WHAT I WAS GOING TO SAY WAS THAT I'M SURE THAT UH, IF, IF, IF, IF THIS BOARD WANTED TO AND THIS FINANCE BOARD WANTED TO MOVE THIS TO THE WEEKEND AGENDA, I'M SURE THE, I THINK THIS COULD POSSIBLY FALL INTO THE, UH, UH, UNDER SOMETHING THAT WE CAN ADD TO ASK THEM TO ADD ADDED TO BEGINNING OF THE AGENDA FOR EMERGENCY SO THAT WE CAN GET IT DONE, UH, AS QUICKLY AND SWIFTLY AS POSSIBLE.
UM, I'M NOT SURE HOW Y'ALL, HOW Y'ALL FEEL AS A COMMITTEE TO ASK THE, THE FULL BOARD AT THE, ON OUR WORK AND OUR WORK.
UH, I WORK TOMORROW AND, UH, AND SATURDAY TO ASK TO HAVE THIS, TO HAVE THIS, UH,
[00:35:01]
ADDED TO THE WORK SESSION.WELL, ROBIN, THE AGENDA IS SEPARATE TOMORROW'S WORK SESSION, CORRECT? ROWAN SATURDAY.
WELL I JUST DIDN'T KNOW IF IT WAS SOMETHING THAT COULD BE POSSIBLY ADDED TO THE, UH, WORK SESSION, UH, UNDER THE EMERGENCY OR WHATEVER, BUT OKAY.
YEAH, I JUST, THAT WAS MY QUESTION.
UH, RACHEL, SORRY, I JUST HAD, UM, TWO, TWO MORE COMMENTS.
ONE IS IN REGARD TO THE COST THAT THIS MAY ENCOMPASS, UM, WHEN WE DO BRING THIS FORWARD, UM, TO THE FULL BOARD AND AS THE FINANCE COMMITTEE, I THINK IT MAY BE APPROPRIATE TO US TO HAVE LOOKED AT, UM, THE MOST RECENT, UM, BOARD BUDGET TO SEE WHERE THERE MAY BE SOME FLEXIBILITY WITH THAT AND WHAT KIND OF DOLLAR FIGURE AS A MAX DOLLAR FIGURE WOULD BE APPROPRIATE.
SO, UM, I JUST WANTED TO PUT THAT ON EVERYBODY'S RADAR AND THEN, UM, IN REGARD TO DICK'S COMMENTS, UH, WHICH ARE WELL TAKEN WITH REGARD TO THE PROBABLE CAUSE.
UM, IT WAS MY UNDERSTANDING AT THE NOVEMBER 10TH MEETING, UM, AND DURING AUDREY'S REPORT THAT THERE WERE INDICATIONS, UM, AND KNOWLEDGE THAT SHE HAD RELATIVE TO THE BERKELEY CASE AND, UM, THE TYPES OF TRANSACTIONS THAT OCCURRED IN THAT AND HER UNDERSTANDING OF IT AND ALSO HER UNDERSTANDING OF, UM, OUR REPORTING AND OUR FINANCIALS.
THAT THAT IS WHY IT WAS IDENTIFIED AS A RISK.
AND I HAD ASKED THE QUESTION OF WHETHER OR NOT IT WAS JUST A REPUTATIONAL RISK, UM, TYPE OF INSTANCE, OR IF THERE HADN'T BEEN EVIDENCE THAT, THAT POINTED HER IN THAT DIRECTION.
AND IT WAS MY UNDERSTANDING BASED ON HER REPORT THAT THERE HAD BEEN SOMETHING THAT SHE IDENTIFIED, UM, AS CAUSE TO LOOK AT THIS.
SO, UM, THAT IS WHY I DO SUPPORT IT MOVING FORWARD.
AND I JUST WANTED TO POINT OUT AS A, AS A SIDE NOTE THAT THIS AUDIT THAT WE JUST PERFORMED, THE PROCESS WAS VERY UNIQUE.
IT WAS THE FIRST TIME THE BOARD HAD SOLELY TAKEN UNDER ITS WING, THE TIRE PROCESS FOR SOLICITATION, UH, FOR REVIEWING ALL OF THE, THOSE WHO, UM, APPLIED.
AND WE MADE THE DECISION TO GO WITH THIS FIRM AS A BOARD.
UM, THEY'VE DONE QUITE A BIT OF WORK THUS FAR AND THEY BROUGHT US THEIR RECOMMENDATIONS AND, UM, LET'S, LET'S BRING THIS, LET'S BRING THIS GOAT FORWARD TO THE BOARD.
AND AT THAT POINT, LET'S SEE HOW THE BOARD, UM, CHOOSES TO PROCEED WHAT THEIR WILL IS.
SO, UM, CHRISTINA, YEAH, A COUPLE OF COMMENTS.
I WOULD LIKE AUDREY TO ADDRESS WHAT RACHEL JUST STATED.
WHAT ARE THE SPECIFIC RISK FACTORS REGARDING TAN AND THAT YOU MENTIONED NOVEMBER 10TH AS IT RELATES TO THIS ADDITIONAL RISK RECOMMENDATION, THE SPECIFIC RISKS.
YEAH, I'M TRYING TO THINK IF IT WOULD BE HELPFUL TO JUST TAKE A LOOK AT THE CASE.
I DON'T KNOW IF THAT'S SOMETHING, UM, YOU GUYS WANT TO DO.
I COULD SHARE MY SCREEN, IF THAT WOULD BE HELPFUL.
LET ME SEE IF I CAN PULL UP THE FILE.
SO YOU WOULD BE ABLE TO SHARE YOU'RE READY.
I HAD GONE THROUGH THE CASE ITSELF AND HIGHLIGHTED JUST SOME DIFFERENT AREAS THAT KIND OF STOOD OUT TO ME AND THERE'S UM, LET ME MAKE SURE THIS IS THE HIGHLIGHTED VERSION.
UM, CAN YOU SEE WHERE TO SHARE SCREEN? UM, YEAH, JUST A MINUTE.
I'M TRYING TO WORK WITH ALL MY, ALL MY WINDOWS HERE.
SO IT PUT, SHOULD, CAN YOU GUYS BE, YOU PROBABLY CAN, CAN YOU SEE THIS, UM, DOCUMENT NOW? YES.
SO THIS IS, YOU KNOW, KIND OF THE SUMMARY,
[00:40:01]
UM, AND LET'S GO TO THE TOP SO THAT WE CAN LOOK AT, YOU KNOW, I DIDN'T DO A LOT OF WORK ON THIS, SO I UNDERSTAND THE CONCERN ABOUT, YOU KNOW, HOW DO YOU REALLY KNOW THIS OCCURRED? I THINK A LOT OF WHAT THEY HAVE IN HERE ON THE CIVIL SIDE IS COMING FROM THE CRIMINAL SIDE THAT WAS ALREADY DETERMINED, RIGHT.SO IT'S NOT LIKE WE ARE SAYING ANYONE IS GUILTY AT THIS POINT, BUT THEY DID DO A LOT OF WORK.
I CAN TELL JUST AS AN AUDITOR, THEY DID A TON OF WORK JUST TO GET TO THAT POINT OF WHAT'S IN HERE.
UM, SO I WOULD SAY THAT IT'S, UM, IT SEEMS, YOU KNOW, THAT THEY'VE ALREADY RESEARCHED EVERYTHING.
UM, BUT, OKAY, SO THIS IS A 2019 MS. DATED MARCH SIX.
AND, UM, SO THIS IS WHERE THE CFO HAD EMBEZZLED AND MISAPPROPRIATED DISTRICT FUNDS.
HE DEMANDED AND ACCEPTED, UM, KICKBACKS AND EXPOSE THE DISTRICT TO FEES AND LOSSES.
UM, SO IF YOU LOOK AT THAT, JUST THAT RIGHT THERE, THE RISK FACTORS ARE THERE AS FAR AS, OKAY.
WHAT WERE THE FEES FOR BUFORD COUNTY SCHOOL DISTRICT? ARE THEY REASONABLE? WELL, THERE'S THERE'S ACCOUNT THAT WE WOULD HAVE TO LOOK OUT FOR THAT.
WHAT WERE THE TOWNS NECESSARY WHERE THE INTEREST, UH, REASONABLE, UM, AS FAR AS KICKBACKS, WHILE THERE'S OTHER AREAS DOWN HERE THAT GO INTO, INTO DETAIL ON THAT PART OF IT, UM, YOU GUYS KNOW THAT YOU HAVE, YOU KNOW, TO ME, PART OF THE PARALLEL IS THAT YOU HAVE SOME OF THE SAME ADVISORS.
UM, WE DON'T KNOW, UH, AT THIS POINT, EXACTLY.
WELL, I GUESS THEY HAVE SOME DETAILS IN HERE, BUT TO ME THE RISK WAS THAT YOU HAD THE SAME ADVISORS THAT WERE INVOLVED OVER ON THIS OTHER, IN THIS OTHER CASE, UM, UH, FOR WHICH HE WAS CONVICTED AND IS NOW IN PRISON.
SO, UM, SO THEN YOU DID HAVE ANOTHER PARALLEL IS RELATED PARTIES THERE.
THEY, HE HAD, UM, GALLAGHER AND SCAD AGO AND HOW THEY WERE, THEY WERE PART OF THAT, UM, PART OF THAT BOARD, BUT THEN THE CONNECTION TO THE DISTRICT.
AND SO THAT'S WHAT YOU ALL HAVE AS WELL.
UM, WITH THE PREVIOUS CFO, UM, BEING ON THE BOARD AND ALSO BEING A CFO, RIGHT.
DOESN'T MEAN YOU DID ANYTHING WRONG.
I THINK THAT THE INDIVIDUAL YOU'RE REFERRING TO WAS NOT AS CFO IN OUR DISTRICT, BUT A HIGH RANKING PERSON WITHIN OUR FINANCE DEPARTMENT.
BUT YES, YOU ARE ACCURATE THERE.
ANOTHER PARALLEL HERE IS ANOTHER VENDOR THAT'S INVOLVED HAS BEEN WITH YOUR DISTRICT FOR A VERY LONG TIME.
UM, AS FAR AS YOU KNOW, THIS IS SOMETHING HERE THAT WE WOULD TAKE A LOOK AT IN OUR PROCEDURES AS FAR AS AGREEMENTS AND MAKING SURE THAT THEY WERE, THEY WERE FOLLOWED.
SO THIS JUST GOES TO, YOU KNOW, WHAT WE CALL THE ANTI DONATION OR, YOU KNOW, NOT BEING ABLE TO IT'S CONFLICT OF INTEREST, REALLY NOT BEING ABLE TO USE YOUR POSITION IN A GOVERNMENT TO BENEFIT, UM, YOURSELF OR FAMILY.
SO THIS RIGHT HERE, IF YOU CAN SEE MY LITTLE HAND, CAN YOU SEE THE LITTLE HAND RIGHT THERE? THAT'S THE AREA THAT, UM, I THINK ON THE INCOME SIDE NEEDS TO BE TAKEN, NEEDS TO BE LOOKED AT, UM, BECAUSE YOU NEED TO MAKE SURE, LIKE I SAID, THE OTHER NIGHT THAT THE DISTRICT'S REVENUE THAT THEY WERE SUPPOSED TO RECEIVE, WENT TO THE DISTRICT.
UM, THERE'S ALSO THIS BIG QUESTION ABOUT THESE FEES AND MORE FEES AND THEN INTERESTS.
AND IF, UH, IF THEY WERE NECESSARY OR NOT, I MEAN, ONE OF THE THINGS IS, DOES THE DISTRICT WANT TO CONTINUE IN THE FUTURE TO ISSUE TANS IS YOUR CASH FLOW SUCH THAT YOU NEED TO HAVE THOSE ADDITIONAL COSTS TO THE DISTRICT AS TEMPORARY CASHFLOW.
[00:45:01]
THAT'S VERY COMMON IN THE SCHOOL DISTRICTS HERE.UH, SO I WOULD SAY THAT YOU COULD PROBABLY MANAGE THE BONDS AND THE CASH FLOW IN A WAY THAT YOU WOULDN'T NECESSARILY HAVE TO HAVE THESE ADDITIONAL EXPENSES.
SO THAT'S SOMETHING THAT WE COULD LOOK AT, UM, AS WELL AND SEE THAT'S, THAT'S IT RIGHT HERE WHERE, UH, THIS PERSON MADE IT SEEM LIKE THE DISH, THE DISTRICT HAD CASHFLOW DEFICIT AND THEREFORE NEEDED TO TIMES WHEN IT ACTUALLY DID NOT.
SO THAT'S ANOTHER CONSIDERATION, YOU KNOW, JUST GOING, LIKE I SAID, WITH THE ROADMAP, YOU KNOW, GOING FORWARD, UM, WHAT COULD BE HELPFUL TO THE DISTRICT GOING FORWARD? OKAY.
NOW HERE'S THE OTHER, JUST ANOTHER HIGHLIGHT HERE ON THE REVENUE SIDE.
I DID TAKE A LOOK TOO AT, YOU KNOW, THE TIMEFRAME OF WHEN THIS HAD, HAD STARTED AND, UM, SAID, OKAY, WE PROBABLY NEED TO GO BACK A COUPLE OF YEARS BECAUSE ONCE THIS ALL CAME OUT, YOU GUYS, UM, ANYTHING THAT MAY HAVE BEEN HAPPENING, UH, FOR EXAMPLE, IT JUST, IF JUSTIN WAS HERE, HE WOULD KNOW RIGHT OFF.
BUT REMEMBER WE TALKED ABOUT THE ACCOUNTS THAT HAVE BEEN CLOSED AND CONSOLIDATED IN 2018.
UM, I'M NOT SURE IF THAT RELATES TO THIS CASE OR NOT, BUT THIS CASE DOES REFER TO, UM, MANY DIFFERENT ACCOUNTS BEING OPENED.
SO ONCE THIS KIND OF CAME TO THE SURFACE, UM, OF COURSE IN MY, IN MY VIEWPOINT, PEOPLE WOULD START CHANGING THEIR BEHAVIOR, YOU KNOW? UM, SO IF THIS CAME OUT, I'M NOT SURE WHEN IT CAME OUT ACTUALLY, BUT 17, 18, MAYBE.
UM, I'M NOT SURE WHEN THIS INDIVIDUAL LEFT YOUR DISTRICT, BUT I MEAN, YOU KNOW, IT'S JUST, IT'S JUST SOMETHING TO KEEP IN MIND THE TIMEFRAME AS WELL.
LIKE I SAID, I DON'T HAVE AS MANY CONCERNS, YOU KNOW, PRESENTLY, UH, BUT AGAIN, IF YOU WANT US TO LOOK AT CASHFLOW OR ANYTHING LIKE THAT, AS FAR AS ARE THESE TANS NECESSARY, THAT MAY BE A GOOD THING TO DO.
THEN WE GET INTO WHAT I WOULD CALL A, NOT AS MATERIAL AREA AS AUDITORS, USE THE WORD MATERIAL, MEANING, YOU KNOW, NOT AS BIG OF DOLLARS.
UH, BUT APPARENTLY, UM, SCAD AGO HAS BEEN CHARGING DISTRICTS OR UNNECESSARY CHARGES IN JUNKETS.
I DON'T KNOW IF THAT'S SOMETHING YOU ALL ARE CONCERNED ABOUT THEN AS WELL, YOU KNOW, SCHOLARSHIPS.
AND, UM, I DON'T KNOW, LIKE I SAID, WITHOUT LOOKING INTO THINGS, IF YOU ALL HAVE THAT OR NOT.
UM, BUT APPARENTLY THEY WERE ISSUED TO, UM, YOU KNOW, REBATED PARTIES OF PARTICIPATING COUNTIES.
WE ALSO HAVE, UM, IPR BONDS AND THAT WERE QUESTIONED IN THIS CASE ANYWAY, AS, UM, NOT BEING IN THE DISTRICT'S BEST INTEREST AND JUSTIN WOULD PROBABLY KNOW, OR TANYA, BUT I'M NOT SURE IF YOU HAVE HAD ANY OF THOSE IPR BONDS, TANYA, DO YOU KNOW, UM, WE HAVE AN INSTALLMENT PURCHASE BOND.
UH, IT HAD A REFUNDING IN 2016.
IT WAS ORIGINALLY CREATED IN 2006.
UM, THE ACCOUNT YOU'RE REFERRING TO ACTUALLY, UM, WERE A RESULT OF THE REFUNDING AND THEN CLOSED THEREFORE AFTER.
SO, UM, BECAUSE THERE WAS THE REFUNDING HAD BEEN COMPLETED.
SO WE DO HAVE A REFUND, UH, THE BOARD APPROVED IN 2006 INSTALLMENT PURCHASE REVENUE BOND WITH SKYGEN.
BUT THEN THAT CLOSED OUT IN 16, RIGHT? NO, IT WAS REFINANCED IN 2016.
IT WASN'T ROLLED INTO OH, OKAY.
AND THEN IN THIS CASE THEY HAD GEO BOND ISSUED BY ANOTHER COUNTY.
AND THEY'RE JUST ARGUING HERE THAT THAT WAS, THAT WAS UNNECESSARY AND TOO EXPENSIVE TO THE DISTRICT THAT IT DIDN'T NEED
[00:50:01]
TO BE.UM, DID IT NEED TO BE DONE? OKAY.
THEN THE OTHER RISK FACTOR HERE, WHICH I DON'T KNOW.
I MEAN, THERE'S, YOU JUST DON'T KNOW WITHOUT LOOKING INTO IT, YOU KNOW, DID ANYBODY BRING VENDORS INTO THE DISTRICT, UM, WHO PROVIDED KICKBACK TO WHOEVER BROUGHT THEM INTO THE DISTRICT? SO THAT WAS JUST ANOTHER AREA THAT I THOUGHT AS POTENTIAL RISKS.
SO I THINK THOSE ARE THE MAIN AREAS GUYS.
UM, AND IT GOES INTO A LOT ON THE ADVISORS HERE AND THE DETAILS THAT THEY HAVE, UM, THEY HAVE ALREADY RESEARCHED AND JUST LOOKING AT EXCESSIVE FEES AGAIN.
SO IF THAT'S SOMETHING THAT YOU GUYS WANT TO JUST CHECK ON FOR YOUR OWN DISTRICT, UM, I RECOMMEND DOING THAT SINCE YOU HAVE THE SAME EXACT VENDORS, AND THIS GOES INTO MORE DETAILS ABOUT THE TRIPS, THE SPONSORSHIPS, THE SCHOLARSHIPS, UM, THE CONTRACTS, ET CETERA.
UM, AUDREY, THANK YOU FOR, UH, DETAILING, UM, PER, UM, WHAT DOCTOR WAS NEVSKY, UM, ASKED ABOUT AND, UM, TAKE, I'M GOING TO GO BACK TO YOU AND TINA I'LL CIRCLE BACK AROUND.
DICK, HEY, THAT I'VE SEEN THAT DOCUMENT BEFORE.
AND IT'S INTERESTING, BUT IT'S ALSO IRRELEVANT BECAUSE THERE WERE NO CRIMINAL CHARGES BASED ON THAT INVESTIGATION, AS, AS WAS STATED, IT WAS A VERY EXHAUSTIVE AUDIT THAT RESULTED IN THAT MAN'S CONVICTION, SOLICITORS DISTRICT ATTORNEYS FOLLOW THE MONEY.
AND IF THEY WERE DOING KICKBACKS AND OTHER THINGS LIKE THAT, A SOLICITOR WOULD LIKE TO HAVE A CONVICTION OF A CFO.
AND HE'D MUCH RATHER HAVE A CONVICTION OF SOMEPLACE LIKE SAGO AND SOMEPLACE LIKE, UH, OTHER BOND, BIG BOND COMPANIES WITH KICKBACKS, THEY WOULD HAVE FOLLOWED THAT RABBIT DOWN THAT HOLE.
THEY DID NOT PROBABLY BECAUSE THERE WAS NOT ANYTHING THAT THEY COULD FIND.
NOW, BERKELEY COUNTY THINKS THERE IS, AND BERKELEY COUNTY IS GOING TO DO A BIG INVESTIGATION, BUT ALL THE THINGS THAT WERE MENTIONED, THERE ARE THINGS THAT IF SAGO WAS CONVICTED IN CIVIL COURT, OF ANY OF THOSE THINGS GO WOULD BE FINISHED.
THAT'S VERY UNLIKELY THAT SAGO PUTS THEMSELVES AT THAT KIND OF RISK.
THAT'S WHY TO ME, YOU WAIT UNTIL THAT IS DONE.
THERE IS LITIGATION IS FINISHED.
AND IF THAT LITIGATION SOMETHING, THEN WE GO BACK AND LOOK AT ART TRANSACTIONS, BUT NOTHING IS REQUIRED RIGHT NOW.
AND I'VE LOOKED AT THE LATEST TIME WE USED
SO IF YOU KNOW, I DON'T SEE ANYTHING THAT'S GOING TO, ANYTHING THAT COULD COME FROM THIS THAT WOULD STOP US FROM TAKING THE LOWEST BIDDER ON BUYING BONDS.
IF AGAIN, IF THE COURT FINDS THERE WAS WRONGDOING AND FAULT, WE'RE GOING TO GO BACK FIVE, SIX YEARS.
DO WE HAVE TIME TO DO THAT? YES.
BUT WHY SPEND THE MONEY ON SOMETHING THAT WE COULD FIND OUT WITHOUT HAVING AN EXHAUSTIVE FORENSIC AUDIT IN, I DON'T KNOW, MAYBE A YEAR OR TWO YEARS OR SO, AND MAYBE IT'S THREE YEARS, BUT THEY WERE TALKING ABOUT THINGS THAT HAPPENED FIVE AND SIX YEARS AGO.
SO I DON'T SEE THIS AS BEING PROBABLE CAUSE TO HAVE A FORENSIC AUDIT.
WHY SHOULD WE SPEND THE MONEY TO HAVE THEM COME BACK AND SAY, WELL, YOU KNOW, THE FEDS DIDN'T FIND ANYTHING AND WE DIDN'T FIND ANYTHING EITHER.
WE'VE ALREADY BEEN DOWN THAT ROAD.
I DON'T WANT TO GO DOWN THAT ROAD.
[00:55:02]
ON AUDITS FOR SOMETHING THAT WE KNEW ALREADY WASN'T BEING DONE IN PROPERLY.AND I AM NOT GOING TO SUPPORT ANOTHER WITCH HUNT UNLESS I SEE PROBABLE CAUSE RIGHT NOW.
AND I HAVE NOT SEEN ANYTHING THAT GIVES ME AN INDICATION OF PROBABLE CAUSE.
SO I BROUGHT THIS UP, BUT IT'S NOT NEW NEWS TO ME.
UM, ONE LAST COMMENT FOR ME AND THEN ONTO DR.
QUADS, I, FOR ONE, THERE ARE NON-PROFITS GAY GO.
I WOULD LIKE TO KNOW WHO'S COVERING ALL THEIR LEGAL FEES RIGHT NOW IN THIS PROTRACTED, UH, CASE.
I'D BE CURIOUS TO UNDERSTAND WHETHER WE, UH, OF THE VARIOUS SCHOOL DISTRICTS ARE PICKING UP THE TAB FOR THAT.
SO I WANT TO MAKE IT VERY CLEAR.
AUDREY, YOU DID NOT FIND CONCERNING ISSUES WITH THE ACCOUNTS YOU REVIEWED FOR BUFORD COUNTY SCHOOL DISTRICT THAT MADE YOU THINK THAT WE HAVE THAT SAME PROBLEM.
IT'S JUST, YOU, LOOK, YOU SEE THIS LAWSUIT AND THAT'S WHERE YOU SAY WE HAVE YOU, WE HAVE ADDITIONAL RISK.
IT DOESN'T COME FROM WITHIN WHAT YOU REVIEWED.
IS THAT CORRECT? WELL, I MEAN, THAT IS A VERY BLACK AND WHITE WAY OF PUTTING IT IN THE REPORT DOES SAY IN, WITHIN OUR SCOPE, OUR ORIGINAL SCOPE, WE DID NOT FIND ILLEGAL TRANSACTIONS.
THAT IS VERY TRUE WITHIN THE FIRST ORIGINAL SCOPE.
UM, BUT LIKE I SAID, THIS IS JUST, YOU KNOW, PARALLELS THAT WE SEE THAT WE FEEL SHOULD BE CHECKED.
IT DOESN'T MEAN THAT YOU DID EXPERIENCE FRAUD.
IT'S JUST, UM, THAT THERE'S RISK OF IT JUST SOLELY BASED ON YOUR KNOWLEDGE OF THIS LAWSUIT, IS THAT CORRECT? NOT BECAUSE YOU SEE SOMETHING WHERE, OH, THAT NUMBER I SAW ON SOME SHEET THAT YOU WERE SENT FOR THE AUDIT THAT YOU DID.
DID YOU SEE THOSE THINGS THAT MADE YOU SAY THIS, OR IT'S TOTALLY BASED ON THIS LAWSUIT? I WOULD LIKE THE ANSWER PLEASE.
ARE YOU, AM I NOT ANSWERING YOU PROPERLY OR, AND APPLIED WHAT RACHEL WAS, NASKI SAID AT THE BEGINNING, IMPLIED THAT YOU SAW SOMETHING IN WHAT YOU REVIEWED FOR US.
AND MY INTERPRETATION WAS NO, YOU DID NOT SEE SOMETHING IN WHAT YOU REVIEWED FOR US.
YOU ACTUALLY JUST ARE BASING THIS RECOMMENDATION ON THE FACT THAT THERE'S THIS LAWSUIT OUT THERE.
I, WE DID SEE THAT THERE ARE ADDITIONAL ACCOUNTS AND TRANSACTIONS ARE RUN THROUGH DIFFERENT FUNDS AND DIFFERENT ACCOUNTS.
AND WE DID SEE THAT SOME OF THE ACCOUNTS WERE CONSOLIDATED, UM, IN 2018.
SO THAT KIND OF MADE US CURIOUS, OKAY, WHAT HAPPENED THERE? WHY WAS THIS DONE? UM, BUT AGAIN, WITHOUT GETTING IN THERE AND SEEING THE THINGS, I WOULDN'T BE ABLE TO TELL YOU THAT THERE IS, OR ISN'T FRAUD, RIGHT.
THAT, THAT DOESN'T MAKE ANY SENSE.
SO WHAT, UM, I HAD EXPRESSED TO BOARD MEMBER WAS NEVSKY LAST MEETING WAS THAT THERE ARE PARALLELS.
I DID NOT STATE THAT WITHIN OUR ORIGINAL SCOPE THAT WE KNOW THAT THERE'S A PROBLEM.
SO, UM, IT JUST, YOU KNOW, IT'S MY PROFESSIONAL JUDGMENT AND MY DUTY AS, AS A GOOD CONSULTANT TO YOU TO JUST BRING THIS TO YOUR ATTENTION, YOU KNOW, I UNDERSTAND THERE'S GOING TO BE, YOU KNOW, DIFFERENT OPINIONS ON EVERYTHING.
SO IT'S ACTUALLY WHAT MAKES FOR GOOD IS TO HAVE GOOD, HEALTHY DEBATES.
SO, UM, I APPRECIATE THE QUESTIONS.
I REALLY, AGAIN, THANK YOU FOR BEING WITH US TODAY, WILLIAM SMITH.
UM, YEAH, MATT, MAN-CHILD LIKES TO SAY THAT, UH, I LIKE TO THANK HER FOR, UM, I'M NOT GOING TO TRY TO SAY HER LAST NAME.
UM, I WOULD LIKE TO THANK HER FOR BEING SO GENEROUS IN GIVING US ALL THAT INFORMATION, BECAUSE SOME COMPANIES WOULDN'T HAVE NOT EVEN GIVEN US THAT INFORMATION WITH WHAT SOUTH ARE CHARGING, WHAT WE'RE CHARGING US FOR THAT.
[01:00:01]
UH, IMPRINT AND I AM STILL PROCESSING THE INFORMATION THAT YOU'VE GIVEN US, YOU KNOW, UM, WHY SOME BOARD MEMBERS TREAT YOU, UH, WERE VERY, UH, KIND OF SEEM TO BE COME ACROSS A LITTLE UNINTENTIONALLY, UH, MAYBE, UH, AGGRESSIVE, YOU KNOW, THAT'S NOT THE WILL OF THE, OF THE, OF THE FULL BOARD.AND I THANK YOU FOR BEING WILLING TO GIVE US THE INFORMATION THAT YOU'VE GIVEN US.
SO I APPRECIATE THAT AND I WILL CONTINUE TO DIGEST INFORMATION THAT YOU'VE GIVEN US.
UM, WE DO HAVE A MOTION ON THE FLOOR.
UM, I DON'T SEE ANY FURTHER HANDS UP.
UM, SO WITH NO FURTHER DISCUSSION ALL IN FAVOR OF THE MOTION.
UM, AGAIN, I THANK YOU SO MUCH FOR BEING WITH US TODAY.
UM, THIS WILL BE, IT'S MY UNDERSTANDING.
THIS WILL BE TAKEN UP AGAIN AT OUR DECEMBER 8TH MEETING.
AND, UM, WE APPRECIATE THE ADVICE AND COUNSEL THAT YOU PROVIDED, NOT ONLY TO OUR FULL BOARD TUESDAY EVENING, BUT THIS EVENING AT OUR FINANCE COMMITTEE.
AND, UM, I SUPPOSE IT'S NOW UP TO THE BOARDS WILL, BUT YOU'VE DONE THE JOB THAT WE TASKED YOU WITH AND PROVIDED ADDITIONAL ADVICE.
THANK YOU ALL VERY MUCH FOR THE OPPORTUNITY TO WORK WITH YOU AND, UM, JUST WE'LL STAY IN TOUCH IF YOU NEED ME TO ATTEND ANOTHER MEETING, JUST, JUST LET ME KNOW.
AND, UM, FOR NOW I WILL SIGN OFF EVERYBODY HAVE A GOOD EVENING AND YOU LIKELY HAVE A GOOD INTERVIEW.
MOVING ON TO OUR NEXT TOPIC ON THE AGENDA, WE HAVE PE PERFORMANCE EXPECTATION, 3.7 MONITORING REPORT FOR FISCAL YEAR 2021 FIRST QUARTER FINANCIAL REPORT.
WE'RE GOING TO HAND THAT OVER TO TANYA CROSBY 3.7 IS OUR FIRST QUARTER 2021, UH, FINANCIAL REPORT.
AND, UH, JUST TO BEGIN, UH, IT, IT IS EARLY IN THE YEAR, BUT, UH, WE HAVE, YOU KNOW, A LITTLE BIT OF INFORMATION TO BE ABLE TO, UM, COMPARE TO PRIOR YEARS.
THAT MAKES THINGS, UM, HELPFUL FOR US.
UM, THE GENERAL FUND REVENUES ARE AT REPORTED AT 5.3% OF THE BUDGET AMOUNTS AT THE END OF THE FIRST QUARTER, PRIOR YEARS ARE EXACTLY THE SAME.
SO, UH, WE DID COLLECT APPROXIMATELY $13 MILLION DURING THAT PERIOD OF TIME.
AND SO WE'RE RIGHT ON TRACK WITH THE PREVIOUS YEAR, UM, SPECIFICALLY IN THE GENERAL FUND REVENUES, A BIG PORTION OF THAT IS OUR LOCAL TAX COLLECTION AND, UM, UH, LOCAL TAXES ARE COLLECTED AT 2.6%.
THEY WERE 2.5% OF THE PRIOR YEAR.
UH, SO WE'VE ONLY COLLECTED ABOUT $4 MILLION AS OF THIS POINT IN THE YEAR, WE STILL HAVE ABOUT $145 MILLION TO GO.
SO AGAIN, UH, THE TAX COLLECTION DEADLINE IS BEING EXTENDED DUE TO THE TAX BILLS GOING OUT LATE THIS YEAR, UH, TO FEBRUARY 15TH.
SO IT WILL BE, WE'LL BE RECEIVING THOSE COLLECTION INFORMATION A LITTLE SLOWER.
UM, BUT HOPEFULLY THE BULK OF THE INFORMATION WE WILL KNOW BY, UM, IT WILL PROBABLY BE MID OR EARLY, EARLY TO MID MARCH BEFORE WE RECEIVING THE, UM, BULK OF THE INFORMATION FROM THE TAX REVENUES.
SO, UM, THE TAX ANTICIPATION NOTE, UH, I'M GOING TO WAIT UNTIL I TALK ABOUT EXPENDITURES SO I CAN REFERENCE THAT ONE.
BUT, UH, AS YOU ALL KNOW, UM, COVID-19 OUTBREAK, WE CLOSED MARCH 16TH.
UM, WE DID, UH, STAY VIRTUAL FOR STUDENTS UNTIL OCTOBER 5TH, WHICH WE DATE, WE MOVED BACK HYBRID.
SO THAT DOES HAVE SOME IMPACT, NOT ON REVENUES, BUT ON, MOSTLY ON OUR EXPENDITURE SIDE.
UM, STATE REVENUES ARE WE'RE AT 9.2%, UH, THE CURRENT YEAR AND OUR GENERAL FUND.
AND THEY WERE AT 9.2% LAST YEAR.
SO WE WERE ALMOST RIGHT ON TARGET AND WE RECEIVED ABOUT $9 MILLION DURING THAT PERIOD, UM, FOR, UH, ENDING SEPTEMBER 30.
UH, HE RIGHT REVENUES WERE 0% AT THE END OF THE FIRST QUARTER PRIOR YEAR.
WAS IT 15%? UH, THAT'S DUE TO A TIMING OF OUR, OUR, OUR, UM, REIMBURSEMENT REQUESTS, A NUMBER OF THOSE REQUESTED COME IN SHORTLY AFTER THE QUARTER END SO THAT WE ARE RESPECTED TO
[01:05:01]
RECEIVE CLAIMS ON TO LARGER REIMBURSEMENTS IN THE MONTH OF OCTOBER.SO YOU'LL SEE THAT ON OUR NEXT QUARTERLY REPORT, UM, SPENDING IN THE GENERAL FUND IS AT 16.6% OF THE BUDGET PRIOR YEAR WAS AT 17%.
SO THAT'S UNDERSTANDABLE, UM, WITH OUR NOT, UH, HAVING BEEN IN THE SCHOOL FULLY DURING THE ORDER, UH, WE WERE DOWN JUST SLIGHTLY, UM, AND THE TOTAL SPENDING AND THIS PERIOD IS 42 MILLION.
SO WHEN I'M REFERRING BACK TO THE TAN NOW, AS YOU CAN SEE, WE HAVE A $13 MILLION REVENUE IN THAT PERIOD AND A $42 MILLION EXPENDITURE.
SO THE DIFFERENCE IS ABOUT $29 MILLION.
UM, SO OUR, WE WERE FORTUNATE TO HAVE, UH, INCREASE IN OUR FUND BALANCE THIS PAST YEAR, AND WE WERE ABOUT $44 MILLION.
SO AS YOU CAN SEE, WE'RE, WE'RE DIPPING WAY INTO THAT FUND BALANCE AS OF THE END OF THE QUARTER, AND THEN GO FURTHER INTO THE OCTOBER AND NOVEMBER TIMEFRAMES WITH OUR EXPENDITURES, VERY LITTLE COLLECTIONS AND REVENUES AND VERY EXTENSIVE EXPENDITURES, EXCUSE ME.
AND SO, UM, THAT IT, UH, IS WHERE THE FACTOR OF THE TAN, UH, NEEDS ARE COMING THROUGH.
SO I JUST WANT TO POINT THAT OUT VERY QUICKLY.
UM, SO AS FAR AS OUR SPECIAL REVENUES, UM, WE DO OUR, THEY ARE UP SLIGHTLY IN THE FIRST, UM, PART OF THE YEAR.
WE DID HAVE THE $4.9 MILLION ALLOCATION OF THE CARES ACT FUNDING, UH, W THAT IS ON A CLAIMS BASIS.
SO WE DO SPEND THE FUNDS FIRST, AND WE DID, UM, DO A CLAIM IN THE FIRST QUARTER, UM, FOR APPROXIMATELY $900,000, UH, FOR THE CARES ACT EXPENDITURES.
YOU THINK, UH, ALSO IN THE FIRST QUARTER WE HAD, UH, B UH, LEAP PROGRAM.
SO LEAP WAS THE FIRST, UM, THE DAYS PRIOR TO THE BEGINNING OF THE SCHOOL YEAR THAT WERE MANDATED BY THE STATE DEPARTMENT AND THOSE AMOUNTED TO, UM, $1.2 MILLION IN THE LEAP FUNDING, IN ADDITION TO THE CARES ACT FUNDING.
AND THOSE WERE REPAID DOLLAR FOR DOLLAR BASED ON THE SPENDING IN THOSE FIVE DAY PROGRAMS. UM, SO THE INCREASE IN REVENUE, FEDERAL REVENUE SOURCES FOR THIS, UM, PERIOD IS DUE TO CARE PRIMARILY DUE TO THE CARES AND THE LEAP ALLOCATIONS FROM THE STATE AND FEDERAL GOVERNMENT.
UM, SO EXCUSE ME, THE LEAP SALARIES BENEFITS WERE 1.6 MILLION THEN HAD THAT A LITTLE BIT OFF.
UM, ALSO WE HAD AN INCREASE IN COMMUNITY SERVICES EXPENSES IN THE SPECIAL REVENUE FUNDS BECAUSE OF OUR MANDATE TO, UM, ALLOCATE TO PRIVATE SCHOOLS AND PAROCHIAL SCHOOLS IN OUR AREA.
SO ARE YOU GOING TO SEE AN INCREASE IN THAT AREA DUE TO THAT MANDATE? UH, AND ALSO AT THE CAPITAL PROJECTS FUNDS, UM, WE DID HAVE AN INCREASE IN SPENDING THERE DUE TO REFERENDUM AND 8% SPENDING OVER THE SUMMER MONTHS.
SO, UM, FOR THE MOST PART, UM, THOSE ARE THE, THAT'S THE HIGHLIGHTS OF THE REPORT.
UM, THERE ARE MANY FURTHER DETAILS, INCLUDING ALL THE DETAILS OF 8% AND, UM, REFERENDUM SPENDING AS WELL.
UM, SO WITH THAT, I'LL BE HAPPY TO TAKE ANY QUESTIONS.
I DON'T SEE ANY EXCELLENT REPORT.
ARE YOU SURE? NO ONE HAS A COMMENT OR INPUT? NO, MADAM CHAIR.
UM, DO YOU, DOES ANYBODY HAVE A RECOMMENDATION, UH, TO BRING THIS FORWARD TO THE, TO THE FULL BOARD? I RECOMMEND THAT WE BRING THE FIRST QUARTER, UM, FISCAL YEAR 21 FINANCIAL SUMMARY, UH, TO THE FULL BOARD.
RACHEL, YOU SAID THE DECEMBER 8TH BOARD MEETING.
DID YOU SAY THAT? UM, I DID NOT SAY THAT IN YOUR REPORT NEXT REPORT, AND I DO BELIEVE THAT'S DECEMBER EIGHT.
UM, MOVE ON TO OUR FINAL TOPIC ON TODAY'S AGENDA.
[01:10:01]
DISCUSSION.THIS HAS BEEN AN ONGOING TOPIC FOR A FEW BOARD MEETINGS NOW FOR OUR MINORITY AND WOMEN BUSINESS ENTERPRISE REPORT.
AND AT OUR PREVIOUS MEETING, KALE YOUNGER HEAD, UM, PRODUCING HERCULEAN EFFORT AND FOUND AN OLD BOARD ACTION, UM, DATING ALL THE WAY BACK.
I THINK IT PREDATED 2007 OR EVEN EARLIER KAYLEE AND FINDING THE 20% COMMITMENT THAT THE BOARD MADE AT THAT TIME TO OUR MINORITY AND WOMEN ENTERPRISES.
SO, UM, YOU WERE GOING TO CONTINUE TONIGHT WITH AN UPDATE ON WHAT SOME OTHER SCHOOL DISTRICTS MIGHT BE DOING NAMELY COLLEGE IN COUNTY AND WHETHER THEY WERE HAVING MORE SUCCESS THAN US TAME TOMMY.
IS THAT CORRECT? I'M HANDING MR. KALEY, ARE YOU TAKING THIS? UM, I THINK, UH, WELL I WAS GOING TO INTRODUCE, BUT I THINK KAYLEE WILL DO A GREAT JOB HANDLING IT ALL FOR ME.
SO, UM, I'M GONNA, I'M GOING TO HAND THAT OVER TO HER CAPABLE HANDS.
MADAM CHAIR AND, UH, OTHER MEMBERS OF THE BOARD AND THE FINANCE COMMITTEE.
UM, SO THE FIRST REQUEST WAS TO RESEARCH KALTEN COUNTY SCHOOL, MINORITY WOMEN, BUSINESS, ENTERPRISE UTILIZATION, AND PROGRAM.
UM, AND THE DISCUSSION WAS SURROUNDING CARLTON COUNTY SCHOOL DISTRICT SUCCESS WITH MEETING THEIR ANNUAL 10% GOAL.
AND SO AFTER FURTHER DISCUSSION WITH THEIR CHIEF PROCUREMENT OFFICER AND PULLING SOME DATA FROM THEIR INDEPENDENT AUDITOR'S REPORT, YOU'LL SEE HERE THE LAST THREE YEARS, WHAT THEIR SPENDING WAS FOR THEIR MINORITY BUSINESS ENTERPRISE UTILIZATION.
UM, I, UH, SPOKE WITH ALSO THE CHIEF PROCUREMENT OFFICER AND ASKED ABOUT WHAT THEY WERE DOING EXTRA WITH MINORITY BUSINESS ENTERPRISE.
AND, UM, THEY'RE, THEY'RE DOING WHAT WE'RE DOING.
UM, UH, WELL, WE'RE DOING A LITTLE BIT MORE, BUT, UM, THIS, THIS IS, THIS IS WHAT I PULLED FROM THEM UP ON THAT REQUEST.
ARE THERE ANY QUESTIONS ABOUT, REGARDING THAT? HOLD ON, LET ME CHECK HANDS, KAYLEE.
UH, THE SECOND REQUEST, UM, AND I BELIEVE THIS CAME FROM DR.
UM, WE ALSO HAVE VENDOR REGISTRY WEBSITE, WHICH REACHES OUT LOCALLY, REGIONALLY AND NATIONALLY.
UM, WE ADVERTISE NATIONALLY, REGIONALLY AND LOCALLY TO MAXIMIZE, UM, OUR REACH FOR ANY OPPORTUNITIES THAT WE HAVE WITH THESE VENDORS AND TO, UH, THE FURTHER THAT TO SHOW WHAT WE DO.
UM, WE'VE PROVIDED THE FINANCE COMMITTEE WITH THE INFORMATION ABOUT OTHER SOUTH CAROLINA MINORITY AND WOMEN, WOMEN, AND BUSINESS ENTERPRISE CERTIFICATION PROGRAMS, UM, SOUTH CAROLINA AND THEIR PROCUREMENT DIVISION ONLY RECOGNIZE, UM, VENDORS CERTIFIED ONLY RECOGNIZES THE CERTIFICATION OF VENDORS, UM, WITH THE SMALL AND MINORITY BUSINESS ASSISTANCE OFFICE, WHICH GIVES THEM THE S M B C C CERTIFICATION.
SO WHEN WE ARE GIVING YOU THE MINORITY BUSINESS ENTERPRISE UTILIZATION REPORT QUARTERLY, AND WE'RE SHOWING YOU THE PERCENTAGE FOR CERTIFIED AND UNCERTIFIED, THE CERTIFIED ARE THE ONLY ONES THAT ARE CERTIFIED THROUGH THE STATE OF SOUTH CAROLINA WITH AN SMP MPCC CERTIFICATION.
THERE ARE TWO OTHER, UM, PROGRAMS OUT THERE THAT VENDORS CAN BECOME CERTIFIED WITH THREE, THE, UM, SOUTH CAROLINA DEPARTMENT OF TRANSPORTATION, DISADVANTAGED BUSINESS ENTERPRISE, OR DBE, AND HISTORICALLY UNDER UTILIZED BUSINESS ZONES PROGRAM, OR HUB ZONE.
UM, AND I'VE PROVIDED WITH, OR PROVIDED TO YOU THERE, WHICH VENDORS IN BEAVER COUNTY ARE REGISTERED UNDER THOSE, BUT WE CAN'T RECOGNIZE THEM AS CERTIFIED VENDORS FOR US TO USE.
WE USE THEM, BUT WE, UM, CATEGORIZE THEM AS UNCERTIFIED FOR SOUTH CAROLINA PROCUREMENT.
I WANT TO JUST PAUSE FOR A MOMENT FOLKS IN THE INTEREST OF TIME, LET'S LIKE KAYLA GET THROUGH THE, UM, HER PRESENTATION IN FULL AND RACHEL, I SEE YOUR HAND, YOU'LL BE UP FIRST.
IN ADDITION TO THE SMBC CERTIFICATION, WE PROVIDED THE LINK IN THIS DOCUMENT SO THAT THE BOARD COULD SEE THE EXTENT THAT, UM, VENDORS OR FIRMS HAVE TO GO TO, TO BECOME CERTIFIED THROUGH THE STATE OF SOUTH CAROLINA.
IT'S A SIX PAGE APPLICATION, UM, THAT IS EXTREMELY DETAILED.
AND THEN ONE PAGE OF JUST AN ENTIRE CHECKLIST OF WHAT IS REQUIRED AND THE RECERTIFICATION IS THE SAME.
SO IT IS, UM, IT'S DEFINITELY HARD OR IT'S TAXING ON VENDORS TO BECOME CERTIFIED,
[01:15:01]
BUT WE'VE REACHED OUT TO THE, UH, UH, SMBC CERTIFICATION OR THE STATE MINORITY BUSINESS ASSISTANCE OFFICE.UM, AND I'M WAITING FOR A REPLY FROM THEM TO SEE WHAT ELSE WE CAN DO AS A DISTRICT BEYOND WHAT WE'RE ALREADY DOING TO TRY AND GET THEM CERTIFIED IN THE DISTRICT, AS MUCH AS WE CAN HAVE THOSE CERTIFICATION, IF YOU WANT IT TO LOOK AT THAT.
IT IS AN EXTENSIVE APPLICATION, VERY EXTENSIVE EXPERIENCE.
AND I THINK THIS IS THE CHECKLIST THAT SHE'S, UM, COMING ON NOW TO EVERYTHING AND INCLUDING IN THIS APPLICATION, A CHECKLIST OF WHAT IS REQUIRED OF ALL BUSINESSES TO BECOME CERTIFIED IN ADDITION TO THE APPLICATION, AND THEN THAT DOESN'T EVEN CONSTITUTE APPROVAL NECESSARILY.
AND THEN AN AFFIDAVIT HE EVEN DOES THAT COMPLETE YOUR REPORT.
ARE YOU READY FOR Q AND A? YES.
AND, OR TANYA WHO, HOWEVER YOU WANT TO PROCEED, TANYA, UM, RACHEL, IF I JUST HAVE ONE QUESTION, IT WAS IN REGARD TO, UM, OTHER SERVICES THAT MAY NOT BE, UM, YOU KNOW, NECESSARILY CAPITAL PROJECT TYPE THINGS, UM, SOFTWARE SERVICES AND THINGS LIKE THAT.
THOSE ARE INCLUDED USUALLY IN THE REPORT, CORRECT? YES.
UM, EVEN IN THE REPORTING, I THINK THE NURSE QUARTERLY REPORT, YOU HAVE A CONTRACT THAT WE JUST SIGNED WAS FOR, UM, UH, E RATE I BELIEVE, AND THEY A MINORITY BUSINESS, BUT THEY'RE NOT CERTIFIED IN SOUTH CAROLINA.
SO THEY WILL, THEIR PORTION OF SPENDING THAT WE DO WITH E RIGHT WILL COME ON AND BE TOTALED WITH UNCERTIFIED, BUT NOT IN THE CERTIFICATION AND PER OUR PROCUREMENT CODE THAT 20%, OR I'M SORRY FOR BOARD POLICY, WHEN IT STATES IN OUR PROCUREMENT CODE, UM, THAT WE HAVE TO MEET THE BOARD'S GOAL, WHICH IS 20%, THE PROCUREMENT CODE ONLY RECOGNIZES MBE UTILIZATION AS CERTIFIED.
SO WE'RE PROVIDING UNCERTIFIED AND CERTIFIED T FOR REPORTING REASONS, BUT THAT 20% GOAL IS FOR ONLY CERTIFIED.
AND SO THAT WOULD ALSO ENCOMPASS, UM, INSTRUCTIONAL TECHNOLOGIES AND THINGS LIKE THAT, BECAUSE I KNOW THERE ARE SOME, YOU KNOW, SOFTWARE COMPANIES AND THINGS LIKE THAT OUT THERE THAT ARE WOMEN OWNED OR MINORITY OWNED.
UM, AND I JUST WANT TO MAKE SURE HOW ARE WE CHECKING ON THOSE BECAUSE SOME OF THEM MAY BE NEW TO US JUST DUE TO COVID AND THINGS LIKE THAT.
HOW ARE YOU GUYS CHECKING THAT AS WE'RE ACQUIRING THOSE THROUGHOUT THE DISTRICT? SO I MONITOR AS WE RECEIVE, UM, ANY PROPOSALS OR BIDS OR QUOTES FROM VENDORS WHEN THEY COME THROUGH, UM, PART OF OUR SOLICITATION ON THE SECOND PAGE, THEY HAVE TO NOTATE WHETHER OR NOT THEY, OR A MINORITY WOMEN BUSINESS, ENTERPRISE, EXCUSE ME.
UM, AND THEY'LL CHECK YES OR NO.
AND I WILL TELL YOU THAT FOR THE QUARTER, SO THAT YOU CAN SEE HOW MANY HAVE SUBMITTED AND HOW MANY WE AWARDED TO, UM, AND IN OUR FINANCIAL SYSTEMS, IN OUR ERP MUNIS, WHEN THEY SUBMIT A W NINE, IN ORDER TO RECEIVE CHECK PAYMENT OR ACH PAYMENT, THEY HAVE TO LIST ON THEIR W NINE.
I BELIEVE IT'S ON THEIR W NINE, WHETHER OR NOT THEY'RE A MINORITY WOMEN BUSINESS ENTERPRISE, OR MINORITY OWNED.
AND IF THEY CHECK THAT BOX, WHEN THEY'RE ENTERED INTO THE SYSTEM, IT FLAGS THEM.
AND SO QUARTERLY, WE RUN A REPORT AND IT WILL PULL ANY PAYMENTS FROM THOSE VENDORS, SAME THING WITH BANK OF AMERICA, WITH ANY P-CARD PURCHASES, WHEN THEY'RE LISTED INTO THE SYSTEM, AS LONG AS THEY NOTATE WITH THEIR MERCHANT, THAT THEY ARE A MINORITY BUSINESS, IT PULLS ALL THAT INFORMATION AS WELL FROM THE VENDOR, FROM BANK OF AMERICA.
SO WHETHER WE'RE PAYING CHECK ACH OR P-CARD ALL SPENDING, UM, IS, IS IT'S TOTAL BASED ON WHAT THE VENDORS HAVE PROVIDED.
THAT'S, THAT'S REALLY HELPFUL.
I THINK FOR, FOR ME TO KNOW, AS A BOARD MEMBER, THAT THERE'S THOSE MULTIPLE CHECKS THAT YOU GUYS ARE DOING TO TRY TO CAPTURE ALL OF THIS AS MUCH AS POSSIBLE.
I GUESS THERE'S, THERE'S ONE MORE THING.
I FORGOT THE, UH, THE CONTRACTORS THAT WE USE TO THE GENERAL CONTRACTORS, UM, WE KEEP A LIST OF CONTRACTORS THAT WE DO BUSINESS WITH, AND THEY ARE REQUIRED TO SUBMIT TO US QUARTERLY, THEIR SUBCONTRACTORS AND THE UTILIZATION FOR THEIR MINORITY WOMEN BUSINESS ENTERPRISES.
AND IF THEY'RE CERTIFIED, THEY HAVE TO PROVIDE THAT CERTIFICATION INFORMATION AS WELL.
AND THAT ALSO GOES INTO THE QUARTERLY REPORT.
UH, THANK I HAVE A COMMENT AND A QUESTION FOR YOU, KAYLEE.
THE REASON THE PROCESS IS SO RIGOROUS IS BECAUSE WHEN THIS SYSTEM OR THIS INITIATIVE TO TRACK MINORITY AND WOMEN, UH, BUSINESS, UH, VENDORS,
[01:20:02]
UH, WAS FIRST TO PUT OUT THERE, THERE WAS A LOT OF ABUSE AND, AND HOW PEOPLE FIND A MINORITY OR A WOMAN AND SAY, OKAY, GUESS WHAT? YOU'RE NOW THE HEAD OF A COMPANY.YOU'RE NOT REALLY, BUT YOU'RE THE FIGUREHEAD.
AND SO THAT'S WHY THESE APPLICATIONS ARE SO DETAILED AND, AND AUDITED, FRANKLY, BUT KAYLEE, UH, WE HAVE OTHER GOVERNMENTAL AGENCIES IN BUFORD COUNTY THAT HAVE THE SAME KIND OF DESIRE TO ENGAGE MINORITY AND WOMEN OWNED BUSINESSES.
UH, WE HAVE THE BUFORD COUNTY ADMINISTRATION AND WE HAVE THE MARINES.
MY QUESTION TO YOU IS DO YOU PROCUREMENT FOLKS FROM OTHER GOVERNMENTAL AGENCIES IN BUFORD COUNTY EVER GET TOGETHER AND SHARE THAT YOUR VENDOR LIST? YOU SAID THAT YOU KEEP A LIST OF WHO YOU HAVE, UH, WORKED WITH, BUT IS IT POSSIBLE THAT THE MARINES ARE DEALING WITH A, A MINORITY OR A FEMALE VENDOR, UH, THAT YOU DON'T KNOW ABOUT THAT, THAT YOU COULD TAP INTO? SO YOU GUYS GET TOGETHER AND SHARE INFORMATION.
SO THE GOVERNMENT, UM, THAT THERE'S THE SOUTH CAROLINA ASSOCIATION OF GOVERNMENT PURCHASING OFFICIALS, AND WE TYPICALLY GET TOGETHER ANNUALLY, BUT DUE TO THE PANDEMIC, WE HAVEN'T BEEN TOGETHER THIS YEAR, WHERE WE MEET NEW VENDORS, ESPECIALLY LOCALLY, BUT THEY'RE ALL THROUGHOUT SOUTH CAROLINA.
IT'S LIKE A, IT'S A BIG VENDOR FAIR WHERE YOU CAN SEE DIFFERENT PRODUCTS AND THINGS THAT ARE OUT THERE THAT MAY BE BENEFICIAL TO YOUR BUSINESS.
UM, WITH GOVERNMENT PURCHASING ON THE OPPOSITE SIDE WITH FEDERAL, UM, FEDERAL PROCUREMENT, WHICH IS A LITTLE BIT DIFFERENT, UM, WE TYPICALLY DO NOT MEET WITH THEM ON, UM, ON A REGULAR BASIS.
AND I THINK IT'S CAUSE THEIR PROCUREMENT STANDARDS ARE SLIGHTLY DIFFERENT, BUT I DO HAVE CONTACTS AT THE BASIS.
AND I WOULD BE MORE THAN WILLING TO REACH OUT, TO SEE WHO THEY'RE USING, UM, FOR DIFFERENT PRODUCTS THAT, UH, MOSTLY GOODS.
UM, I DON'T KNOW IF SERVICES WOULD BE AS BENEFIT TO THE SCHOOL DISTRICT AS THEY ARE TO THE BASE, BUT GOODS WOULD DEFINITELY BE SOMETHING WE COULD REACH OUT FOR.
AND, UM, THE PROCUREMENT DIRECTORS IN SOUTH CAROLINA USED TO GET TOGETHER QUARTERLY, BUT AGAIN, DUE TO THE PANDEMIC WE HAVEN'T MET AND, UM, GOT TOGETHER IN COLUMBIA QUARTERLY SINCE, UH, I THINK SINCE LAST YEAR.
WELL IT'S REALLY, REALLY THANK YOU.
AND THAT'S THE REASON I SAY THAT IT'S REALLY IMPORTANT TO KNOW WHO IN BUFORD COUNTY, BECAUSE OBVIOUSLY BUFORD COUNTY VENDORS HAVE A COST ADVANTAGE TO US.
YOU DON'T HAVE TO PAY FOR LONG DISTANCE AND EVERYTHING ELSE.
AND, AND SO THEY USE SOME OF THE SAME LOCAL VENDORS THAT WE DO.
AND SO I JUST WANT TO MAKE SURE THAT, YOU KNOW, THEY DON'T HAVE A FAVORITE THAT THEY, THAT THEY'RE USING THAT WE CAN'T USE AS WELL.
UM, AND I WANT TO GIVE, UH, MINORITY AND WOMEN, UH, ALL KINDS OF WORK.
SO IF YOU WOULDN'T MIND REACHING OUT TO THE GOVERNMENTAL AGENCIES IN BUFORD COUNTY AND ASKING IF YOU COULD SHARE YOUR VENDORS AND WHERE IT'S POSSIBLE.
CAUSE I MEAN, WE, WE BUY A LOT OF SUPPLIES AND SO DO THEY, THAT ARE JUST LOCAL LOCAL PURCHASE STUFF.
AND FOR EVERYBODY WATCHING, KAYLA, YOUR TITLE WITH THE BUFORD COUNTY SCHOOL DISTRICT, YOUR PROCUREMENT COORDINATOR.
I DIDN'T ANNOUNCE THAT AT THE BEGINNING OF THE MEETING.
WHAT I WAS GOING TO SAY IS THAT THE MILITARY AND THE FEDERAL GOVERNMENT DOES NOT HAVE THE SAME STRING AS REQUIREMENTS THAT THE STATE HAVE.
MANY, UH, MINORITY BUSINESS THAT GET, UH, CONTRACTS ON PARIS ISLAND ON THE AIR STATION AND THE NAVY HOSPITAL.
UM, THE, THE COMPANY THAT I WAS WORKING WITH BACK YEARS AGO, WE HAD SEVERAL CONTRACTS WITH, UH, GOVERNMENT, UH, MARINES AND NAVY HOSPITAL.
UM, AND THEY ALSO HAVE AT THE PERSON'S OFFICE, THEY ALSO HAVE, UH, YOU CAN GO THERE AND PICK UP A COPY OF THE DODS REPORT AND IT LISTS PROJECTS NOT ONLY HERE IN THE STATE OF SOUTH CAROLINA, BUT ALL OVER THE COUNTRY OF THE UNITED STATES.
I DON'T SEE ANYONE HANDS UP AT THIS TIME.
UH, LET'S GO AHEAD AND LOOK AT FUTURE TOPICS.
[01:25:01]
UM, WE, WE ARE, THIS IS TECHNICALLY OUR LAST, UM, UH, AGENDA FOR THIS COMMITTEE AND ITS CURRENT, UM, COMPOSITION.UM, THE NEXT MEETING IN DECEMBER, THIS COMMITTEE WILL MEET SOLELY TO, UH, APPROVE ANY AND ALL LAST MINUTE AND PERHAPS DO SOME HOUSEKEEPING ITEMS ON OUR WEBSITE, ROBIN, JUST TO ENSURE THAT WE HAVE EVERYTHING WE NEED, IT LOOKS LIKE WE, WE DO, BUT WE CAN CHECK ON THAT AND THEN SIMPLY ADJOURNED AND NOT BEGIN ANY, ANY NEW BUSINESS AS THERE WILL BE, UH, A NEW FINANCE COMMITTEE, UM, AT THE BEGINNING OF THE NEW YEAR FORMED.
SO, UM, WITH THAT IN MIND, WE HAVE NO FUTURE AT THIS TIME.
UM, AND OUR NEXT MEETING DATE, UM, ROBIN, CAN YOU TELL US WHAT DAY THAT FALLS ON IN DECEMBER? I WANT TO MAKE SURE BOTH DICK AND RACHEL ARE AVAILABLE AND TANYA, UH, DECEMBER 10TH, DECEMBER 10TH.
I HAVE NO CONFLICTS, RACHEL AND DICK.
UM, SO, UM, THIS MEETING, IF THERE'S NO FURTHER COMMENTS OR QUESTIONS IS A JOURNEY.