08.21.2026 Audit Committee Meeting

Summary of the Audit Committee Meeting (08.21.2026)

1) Meeting logistics and member updates

• Roll call was conducted, and the committee confirmed a quorum.
• Several members were absent, including Frank Barbieri. (David Talley, Mark Biemaster, Leondre Campbell, and others were present.)
• Introductions were made for staff and leadership from:
  • Office of General Counsel
  • Accounting Department
  • Inspector General’s (IG) Office
• New committee member: Sandra Morrow, replacing Corey Freeze. She was identified as the principal for elementary schools in Pioneer Park.
• The agenda and the minutes from July 16 were approved unanimously.
• No public comments were made.

2) Inspector General update

• The IG office reported momentum returning to normal operations (“back to school”), including ongoing internal funds audits.
• The IG also referenced upcoming timing pressures (including the district’s “11-day count”) and made a lighthearted comment about budget constraints, layoffs, and finding resources.

3) Audit committee leadership elections (Chair and Vice Chair)

• The chair’s term extension previously approved by the board was used to allow Dave Talley to continue as Audit Committee Chair for 2026–2027, confirmed by unanimous vote (acclamation due to no competing nominations).
• Mark Biemaster was nominated and unanimously confirmed as Audit Committee Vice Chair for 2026–2027.
• Talley noted it would be his last year as chair, while remaining on the committee.

4) FY 2027 Annual Work Plan (annual audit plan)

The audit team presented the FY 2027 Annual Work Plan, explaining how it was built:

• Inputs included:
  • Survey responses
  • Discussions with executive committee/board members
  • Review of prior audit work
  • Consideration of emerging risks
  • New legislation/changes
  • Factors that could increase risk
• The plan is not “written in stone.” Time is reserved for emerging issues and requests.
• The committee emphasized:
  • Avoiding duplication with other oversight efforts
  • Maximizing “bang for the buck,” including use of remaining capacity for higher-risk areas

Major focus areas and audit categories

• Investigations (misconduct/whistleblower/CARES-related matters)
  • Investigations can be time-intensive and are often triggered by complaints or referrals.
  • A key operational challenge: fewer investigators due to budget cuts and vacancies, affecting distribution of time across functions.
• Internal funds audits (targeted annually across schools)
  • Framed as crucial for compliance due to frequent turnover in school leadership and finance roles.
  • Positioned as both corrective and preventive (addressing systemic issues and repeat findings).
• Compliance and contracts oversight
  • Includes charter school oversight (financial stability, based on CPA reports), procurement/contract reviews, corrective-action follow-up, and training/outreach.
  • A planned effort was highlighted: contract compliance review covering procurement through invoicing/payment verification and alignment with contract deliverables.
• Priority internal funds audit hours and areas
  • Over 6,000 hours dedicated to internal funds audits (as stated).
  • Priorities included:
    • Select purchase contracts
    • Construction change orders
    • Athletic programs / supplement expenditures, linked to NIL changes and prior irregularities (e.g., NIL agents, supplements for teams not coached or not existing)
    • Food service (collections/reconciliation issues and complaint-driven concerns)
    • Sales tax / referendum-related spending compliance
    • Cash counts
    • Data analytics
    • Special requests / reserve capacity for emerging issues

Discussion with committee members (time allocation / investigations vs compliance)

• Questions were raised about whether investigations consume too much time relative to compliance and audit work.
• The IG responded:
  • Investigations and audits require different skill sets and workflows, so cross-staffing is not straightforward.
  • Contract compliance work will absorb some investigative-hour needs where possible (especially procurement/contracting issues).
  • “Reserve”/special request hours allow the team to address new issues as they arise without fully rewriting the work plan.
• Clarification: the investigation function is supported by intake coordinators in addition to investigators and oversight staff (not only investigators counted in the earlier explanation).
• Budget constraints and a hiring freeze were discussed as limiting factors for adding staff, making it harder to reduce backlog or shift workload.

5) Approval of FY 2027 Annual Work Plan

• A motion to approve the FY 2027 Annual Work Plan was made.
• Approval included an understanding that administration will work on balancing compliance/investigation time without losing additional staff capacity.
• The work plan was approved 5–0.

6) FY 2026 Unannounced Cash Counts (report and approval)

Diana Garza (IG’s Office) presented results from FY 2026 unannounced cash counts:

Scope and objective

• Scope: 20 sample schools; the audit team assisted with the effort.
• Objective: verify compliance with money collection procedures and whether cash was properly accounted for, deposited into safe/collection systems, and deposited into bank accounts.
• Selection method: based on data/analysis of collections and bank deposit records (Wells Fargo access mentioned) plus prior audit findings.

Outcomes / conclusions

• Six schools: no major non-compliance reported.
• Across all collections examined:
  • about $101,000 examined across 21 unannounced site visits
• Exception noted: New Horizons Elementary
  • $5 was not deposited and was returned later.
  • It was not recorded on the drop safe log or other documentation.
• Fourteen schools: had one or more instances of non-compliance, including:
  • Sponsors not turning in collections timely (3 schools)
  • Treasurers preparing deposits untimely (1 school)
  • Change funds not matching school cash records (2 schools)
  • Unauthorized access to the drop safe (1 school; unrestricted access by a principal’s administrative assistant)
  • Drop safe logs not properly completed (7 schools)
  • Sponsor not retaining yellow copies of money collection reports (1 school)
  • MCRs missing required information (4 schools)
  • Discrepancies between collections and MCRs (5 schools)
• Vendor pickup issue:
  • Armored courier pickups were untimely:
    • 3 schools had 32 prepared deposits totaling approximately $140,000 not picked up timely (up to 39 days after preparation).

Committee questions and clarifications

• Members asked how to interpret “major” vs. “minor” findings and reconcile the 39-day pickup delays with “no major findings” at some schools.
• The IG clarified:
  • “Major findings” refers to materiality of issues within those specific schools.
  • The 39-day pickup delays applied to the separate set of findings described.

Approval

• The report was approved 5–0 after a motion and second.
• Diana received appreciation for the work.

7) Closing

• The committee wished Terry and Joyce happy birthday (noted as the same birthday the next day).
• Next meeting was scheduled for Friday, September 18.
• Meeting adjourned.

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Presenters / contributors (listed)

• Joyce Seddison (Roll call / Audit Committee member)
• David Talley (Audit Committee)
• Mark Biemaster (Audit Committee)
• Michael Dixon (Audit Committee)
• Doreena Bowerman (Audit Committee)
• Leondre Campbell (Audit Committee)
• Sandra Morrow (Newly introduced principal; replacing Corey Freeze)
• Patricia Morales (Office of General Counsel)
• Stephanie Johnson (Director of Accounting)
• Wendy Martin (Accounting Services; Internal Accounts Manager)
• Oscar Streeter (Inspector General’s Office)
• Bob List (Inspector General’s Office)
• Diana Garza (Inspector General’s Office)
• Randy Lowe’s (IG’s Office)
• Tracy Shear (Inspector General’s Office)
• Teresa Michael (Inspector General)
• Harry Haig (Counsel to Inspector General)
• Stephanie Atara (Inspector General’s Office)
• Chantal Knowles (RSM)
• Terry (IG update presenter; spoke on annual report/work status)
• Mr. Smelt / Superintendent substitute role (used for chair election procedure under board policy; speaker name not fully confirmed in subtitles)
• Mr. Law (IG audit team presenter; compliance/contract oversight lead)
• Ms. Shearer (IG intake/assistance; also referenced in investigation staffing)
• Carrie (mentioned as part of IG office administration team; name appears only as “Carrie”)
• Heather Fredrick(s) (mentioned as having arrived; also referenced in prior-year risk discussion)