WEBVTT

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WLWV Meeting Room: All right, i'll call this meeting to order good morning everybody Hello.

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WLWV Meeting Room: Alright, so.

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WLWV Meeting Room: By way of introduction, for the special meeting and we're here to discuss.

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WLWV Meeting Room: The exit letter that was sent to.

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WLWV Meeting Room: The Board by tk w and we're just a little bit of background we just started.

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WLWV Meeting Room: He was hired to perform our worst performing audit for the 2020 2021 fiscal statements.

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WLWV Meeting Room: and

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WLWV Meeting Room: I think a couple of points that are.

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WLWV Meeting Room: relevant to that, as we saw in the memo that we.

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WLWV Meeting Room: received for this special meeting on Thursday tk w.

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WLWV Meeting Room: Try to advise the district, to request an extension of the deadline on December 16.

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WLWV Meeting Room: and on January 12 to kW notify the district that they would again need to the completion of the deadline to march 31 and between mark our January 28 and March 11 district did not hear receiving her question tk who.

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WLWV Meeting Room: On march 11 to kW sent an email informing the district, that it was likely that.

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WLWV Meeting Room: The annual comprehensive financial report would be completed by March 31 by now march 28 kW inform the district that they would need until April 25.

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WLWV Meeting Room: So we can see the movie timeline there and.

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WLWV Meeting Room: On.

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WLWV Meeting Room: Monday April eight have not received anything from tk to view the superintendent terminate the contract with them.

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WLWV Meeting Room: And just before our special meeting on Thursday late last week, I received an email that are a lot of those addressed to the board and.

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WLWV Meeting Room: Acknowledging the termination ticket.

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WLWV Meeting Room: So in that special meeting we discussed.

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WLWV Meeting Room: The determination of tk land which you all know, we're all there.

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WLWV Meeting Room: In that meeting, we agreed that we'd hire an independent contractor to assist the board to review this letter that he kW had sent.

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WLWV Meeting Room: To be as a bridge really between whatever tk w produced and what Rogers company produce but it's permanently higher to complete the 20 2021 statements.

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WLWV Meeting Room: and

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WLWV Meeting Room: At that point we realized since tk who sent this exit letter that with me to expedite.

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WLWV Meeting Room: This this work with the independent consultant I start Thompson and I worked with Dr ludwig's to secure an independent consultant, and that, thank you for being available in such a short timeline and.

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WLWV Meeting Room: To help us just really address the swiftly and dive into this letter that you take every board.

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WLWV Meeting Room: That just by a little bit of history, this is my seventh year up on the board and typically on a firm produces a report.

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WLWV Meeting Room: And a report often you know found.

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WLWV Meeting Room: printed.

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WLWV Meeting Room: Sometimes nice stationary is it to the board comes to the meeting.

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WLWV Meeting Room: describes their findings answers questions.

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WLWV Meeting Room: So this is very unusual not anything i've seen before.

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WLWV Meeting Room: But this time, what we have come to us and essentially excellent letter that they produced within 48 hours working contract was terminated, so it doesn't appear to be to be an official report and they're certainly not here to answer any questions.

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WLWV Meeting Room: But, nonetheless, we wanted to.

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WLWV Meeting Room: Actually align before goal number three to operate an accessible and transparent manner.

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WLWV Meeting Room: So that the letter is it states that it's only for the board to be to us.

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WLWV Meeting Room: But you know, here we are, as the board and to unpack it together.

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WLWV Meeting Room: So that's our opportunity today, I just wanted to lay out just a little bit of background and how we ended up you know why special meeting at 8am.

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WLWV Meeting Room: And so i'll introduce.

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WLWV Meeting Room: Mr dawn staley and just so you all know his background and then I can see if there's anything that anybody wants to say at the end of the table to kind of.

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WLWV Meeting Room: introduce the topic and we'll open it up for questions and discussion so dawn staley has professional experience both an auditor.

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WLWV Meeting Room: With the CPA license and also a school business manager and now retired clearly.

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WLWV Meeting Room: works, but still does work as part time consultant with district budgets, an audit through the Oregon association of school board officers.

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WLWV Meeting Room: So, Mr Stanley work as an auditor for mentioned 78 to 1984 and in 1983 did left auditing to work as the business manager cockiness ESP and then can be school district from 1994 to 2000.

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WLWV Meeting Room: And 2006 he returned clackamas tsp as a business manager until 2012 since then has retired professional has been working with Alaska which is guys.

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WLWV Meeting Room: association of school business officers and to provide business management support or consultation to other school districts drop working.

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WLWV Meeting Room: So what we have here with Mr staley's experienced auditor school districts a successful school district business manager in Oregon.

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WLWV Meeting Room: And since 220 13 his assistant district, such as Gladstone colton port orford fall city Sutherland and is currently exists that assisting clackamas dsp and just for clarity, Mr Stanley did not perform an audit audit the audit.

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WLWV Meeting Room: Is not representative tk who is representing himself, you know and through blasco and it's here to help us make sense of what tk.

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WLWV Meeting Room: So that is sort of our history and our how we ended up here and.

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WLWV Meeting Room: Did.

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WLWV Meeting Room: Anybody want to stay.

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WLWV Meeting Room: There the question yeah was tk w invited to this meeting today, did they have an opportunity to.

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WLWV Meeting Room: it's a public meeting could attend if they wanted to.

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WLWV Meeting Room: There was no personal direct outreach yes.

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WLWV Meeting Room: So I think it might make sense, just to hand it over to you, Mr Stanley and thank you for the introduction.

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WLWV Meeting Room: I appreciate being here.

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WLWV Meeting Room: and see Peter, who is the chairman of Glasgow called yesterday and the day before, and what about five do.

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WLWV Meeting Room: We give you the letter I think that's my object to review and try to answer questions clarity and look at what's done in the past to now.

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WLWV Meeting Room: And where to go and.

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WLWV Meeting Room: I read the letter.

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WLWV Meeting Room: gone through it many times and it's an interesting letter.

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WLWV Meeting Room: say the least, but I wanted to answer our go over a few items before I got into the letter to make sure, because I don't know how many of you are dealing with on it's all the time.

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WLWV Meeting Room: And what gap means versus how you budget, the gap is generally accepted accounting principles that means full accrual.

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WLWV Meeting Room: That means to record depreciation record.

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WLWV Meeting Room: per liabilities all these inflows outflows, most of all districts in the State do their financial statements and their budget on modified accrual which does not take into consideration the purse.

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WLWV Meeting Room: Future debt bond future debt you're on cash is recorded when constructively received so, in other words grants are only recorded up to whatever your expenditures are it's not accruing the whole ground.

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WLWV Meeting Room: accounts payable.

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WLWV Meeting Room: expenditures are recorded when incurred at the time, so it's.

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WLWV Meeting Room: gap and budget are two different things they're halfway so when you go through an audit think about this when we do the audit we prepare the financial statements on the modified cash basis and we get all the other documents from the outside agencies and give them to the auditors.

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WLWV Meeting Room: What they do usually the firm's that I work with and I haven't worked with K tk who i've worked with holly Rogers Aaron done, though, and a lot of firms in the south.

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WLWV Meeting Room: We get all the information together the worksheets and we give them the documents like they get the old beth and we get all these and we give them to the auditors and they have software programs, and they put everything in.

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WLWV Meeting Room: And then you come up with the gap it's like thinking about doing tax returns once upon a time, we do it by hand now everybody uses turbo tax and you just put the numbers in and it comes up with the end result and that's going from modified cash to gap.

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WLWV Meeting Room: And there's 195 districts in the state.

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WLWV Meeting Room: I think there might be about three they can do a whole.

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WLWV Meeting Room: gap statement for the audit and the issue is with orders right now they're governed by gadsby.

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WLWV Meeting Room: And gadsby is putting more restrictions on the auditors, where they can't do the financial statements for districts it's just it's just time.

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WLWV Meeting Room: bye for now gas be governmental Accounting Standards Board and they set new gas these out every year there's a new one out right now on leases.

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WLWV Meeting Room: And so I think it's gadsby number 87 something like that so there's 87 gatsby's out there, and so they define what you have to put in your audit.

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WLWV Meeting Room: and your financial statements and what the goal is is they're trying to have every audit look the same so when you look at a city.

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WLWV Meeting Room: You look at a school district you look at a county they can look at the front, the basic financial statements are all going to be on gaps, so they can make a comparison.

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WLWV Meeting Room: Then you have the notes behind that define the front and then the back is comparing budget on modified rule so most of the time in my experience, and I don't even know if I could do a whole gap without having the software program or working with the auditor.

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WLWV Meeting Room: To do the front, because you have to do all these adjustments and everything, so the goal of the financial department.

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WLWV Meeting Room: is to get all the worksheets and work papers together everything, balanced and give them to the auditor and then they work with you to do the gap statements and the report.

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WLWV Meeting Room: And that's the way I look at, then they give a management letter for internal control to do that another thing as a part of the process is when you do the audit, you have field work field work is always done in July June and July.

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WLWV Meeting Room: That is determining if your internal controls are accurate to determine what extent they have to do the audit.

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WLWV Meeting Room: and school district cannot close the books I don't know how you could lose the books before.

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WLWV Meeting Room: September 30 there is no way because you have your July payroll your August payroll that are for the previous year, you have your taxes that come in, you have your grants you're closing your grants so grants federal grants don't end until September 30.

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WLWV Meeting Room: they're on a different year states are on June 30 federal is on Sep tember 30th which causes a mass and so you can't close the books until roughly September 30.

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WLWV Meeting Room: So the way an auditor and my experience is they do the questionnaire the interviews in May and June.

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WLWV Meeting Room: They do the testing of your expenditures and their revenues to make sure your internal controls best called the field work.

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WLWV Meeting Room: Then you close the books, they send you a schedule of what work papers, they want you do all the work papers and then you send everything into them, and right now, they do it all electronically because of covert.

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WLWV Meeting Room: The districts i've been working they don't even see you anymore you do it online you download it and you go back and forth and you're on the phone.

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WLWV Meeting Room: And so you have to give them all this information, and one thing is like Texas April 15 is tax day, we all know that.

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WLWV Meeting Room: Auditors know the January 5 is audits have to be to the state or you don't get your state school support but.

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WLWV Meeting Room: And, and they panic when they don't have that in there, so there's an urgency on their behalf and an urgency on the district's behalf.

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WLWV Meeting Room: Because that's very important, yes, you can get an extension, but auditors don't like to get an extension on doing the audit and I don't think you've ever had an extension before.

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WLWV Meeting Room: that's just not the norm in the auditing world, and when I did it I don't think i've ever had an extension when I did audits.

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WLWV Meeting Room: So that leads us to the to the letter and going through when I read this.

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WLWV Meeting Room: I want you to ask questions anytime you have because county and sometimes very important.

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WLWV Meeting Room: And i'm very black.

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WLWV Meeting Room: So what I read this.

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WLWV Meeting Room: The main thing I get out of this.

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WLWV Meeting Room: Is they're questioning the internal controls and they're questioning the reconciliations on everyone, they say, I want to review the internal controls.

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WLWV Meeting Room: Make sure you have things reconcile well, the first question I asked is what, what do you have documented here in internal controls.

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WLWV Meeting Room: Well, they have all the internal controls here and they provided up to me, so you have probably clear internal controls and 90% of the districts, right here and but what I would recommend is that you go over these in detail to make sure, because everything changes.

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WLWV Meeting Room: We get new software systems, we have a new staff.

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WLWV Meeting Room: And it's a constant training on internal control and that's very important in the accounting world, especially from the auditors, because they use that to to base their audit.

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WLWV Meeting Room: testing, and so you have them, and I believe they need to be reviewed gone through who's assigned to do what because right now, they don't have assignments on it, but it says there but who's to do what and make sure they're accurate and.

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WLWV Meeting Room: and share with the board and make sure they are very familiar with this another thing they they talked about us reconciliations it's a quick question you had mentioned that typically it's in.

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WLWV Meeting Room: July and August that they come in and do the review right and so to be calling into question internal controls at this point, without having done that work.

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WLWV Meeting Room: Is it seems premature Is that correct yeah I to me i'm so used to auditors coming in and and being a partner right, I consider auditors and I don't know they might be a partner, but I so used to working with.

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WLWV Meeting Room: Auditors, because I was one you're not there just audit the books you're on there to assist because if there is weaknesses, you can discuss and solve with upfront.

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WLWV Meeting Room: Rather than going to the board and and blasting somebody you know I believe it is a two way street, you hire a consultant to help you right not to be a policeman.

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WLWV Meeting Room: it's I think it's like a fire Marshal i'll use that with the kids in a school district, you can have a fire Marshal be very helpful to you and dealing with stuff or they can make life miserable, and so I think.

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WLWV Meeting Room: You have to have a good relationship with the order now they're independent, they have to sign this document and their document you have.

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WLWV Meeting Room: audits from day one here and and there's no glaring there, so I can't imagine the prior auditors.

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WLWV Meeting Room: are overlooking things and and it's just hard for me to understand that I know the firms that have done these audits they do a lot of them in the state, so I just can't imagine they're well trained so.

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WLWV Meeting Room: Well, and would it be correct, that if there was an internal control that was so egregiously poor or bad that in the work or the partial work that they did that would have been called out at a different time, something that was you know you know very threatening to that.

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WLWV Meeting Room: I would think that if I was the auditor.

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WLWV Meeting Room: If there was something that you'd read, yes, I would be in with the superintendent and then meeting with the board chair right because his exposure of the district thing.

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WLWV Meeting Room: We are only stewards of the assets, I mean you're stewards you're not owners and so that's the way I looked at my position as the business major is steward for the district, and to protect the district.

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WLWV Meeting Room: Not to it's not like sometimes when you do the budget everything you think it's yours, you know it is not yours it's not yours and that's the hardest thing for people to get around, but I think everybody in the accounting department.

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WLWV Meeting Room: In my world, they have to understand their roles and they understand what they need to reconcile and to me reconciliation, if you knew me in my business major everything had to be reconciled.

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WLWV Meeting Room: That means reconciled not guess, but so but anyway, you have the internal controls here, they just need to be reviewed and I don't know why they said that.

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WLWV Meeting Room: Controls in there, so I look at them.

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WLWV Meeting Room: They make mention of prior audits.

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WLWV Meeting Room: And misstatements.

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WLWV Meeting Room: Well, you have audits and then you've got awards here, so what you're saying is these audits are bad, and I did looked at those actual details but yes, you do have prior year adjustments if they're very major.

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WLWV Meeting Room: it's not going back to 2003 most auditors perhaps they start from the previous balance and move forward unless it's really bad and so, but then they work with that fire auditor.

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WLWV Meeting Room: So that's just my opinion.

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WLWV Meeting Room: But going over this letter.

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WLWV Meeting Room: The first part where they talked about the proposed audit adjustments, a lot of those are pretty things on gap.

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WLWV Meeting Room: need that putting them in the computer you know and again and giving them the information I look at the ones that bonds deferred revenue accrued interest those all the first ones down there.

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WLWV Meeting Room: Then.

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WLWV Meeting Room: Those are all gap changing everything to gap they aren't something that are in your budget or in your financial statements that he received from the board, that is for the audit presentation.

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WLWV Meeting Room: What do you know, on the full accrual basis that the more.

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WLWV Meeting Room: But this is putting what they're trying to do here is showing all their adjustments that they were having to make, and that what that brought us to me is what schedule.

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WLWV Meeting Room: Is T K w the district.

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WLWV Meeting Room: And when did they get the information and they mentioned it here that they receive 10 different trial balances well I probably done that to myself, every time.

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WLWV Meeting Room: But there is a point that.

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WLWV Meeting Room: When you give your financial statements to their you and you do have adjustments afterwards just it's just like.

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WLWV Meeting Room: When you do give your statements to the the auditor I have voice said, this is the last statement I will send you journal entries you make them there, so you know where we're at.

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WLWV Meeting Room: not sending new fight there I let them and then at the end, we come to agreement on where we're at it's just kind of the steps.

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WLWV Meeting Room: One of the things that I saw in the letter that jumped out at me was that.

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WLWV Meeting Room: There was a statement that they made that we provide it 14 months of data versus 12 data, what can you unpack that a little bit yeah well that's one of the night aronson schools.

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WLWV Meeting Room: Now, the ability to get paid in July and August.

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WLWV Meeting Room: And some districts right three checks in June.

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WLWV Meeting Room: Others accrue it July and August and what happened here is, those are the July and August that were approved it's not the 14 months of.

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WLWV Meeting Room: Of all expenditures it's the payroll items that were there, and so.

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WLWV Meeting Room: that's our teachers preference because it's in their country yeah and and I have to fit.

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WLWV Meeting Room: For some reason and you're gonna laugh I said I was never going to learn table I always said, people since i've been helping districts i've learned people inside out.

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WLWV Meeting Room: Because this is majors left and he dropped me in in a parachute they might come in and clean it up and move on, so I had to learn how to do those things, and the accrual.

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WLWV Meeting Room: Of payroll is one of the most difficult things for June and July I when I saw your payroll for their assist you do payroll I don't have to your job because.

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WLWV Meeting Room: June is one of the most difficult things for a payable clerk because they have the benefits for July and August, all the first for July and August.

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WLWV Meeting Room: All the federal taxes for July and August, has to be put in June, so that is what they were referring to, and it was a lack of communication, I think, or their understanding.

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WLWV Meeting Room: Because they're a big eight firm I don't think they do a lot of smaller districts and I don't consider Westland small but probably small in their world.

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WLWV Meeting Room: And I don't know how much they dealt with it vision as a software program and it does have its limitations, all software programs have limitations, they all and that's what.

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WLWV Meeting Room: That relates to the bank right to that was those two tied together when they made that reference when I went through that so that could have been solved very easily.

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WLWV Meeting Room: But.

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WLWV Meeting Room: I noticed, you were about to ask another cool i'm sorry No, sorry I was gonna ask any questions because the thing I didn't just talk.

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WLWV Meeting Room: So okay So for me the payroll team will send out the email to license and paid an 11 month pacify staff, giving them the option that whether they want a lump sum indoor or they want to tweet paycheck one in.

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WLWV Meeting Room: July August, and then we will receive the email response back Congress, so there are some football license some purple pen monopoly level and say I want a lump sum.

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WLWV Meeting Room: And another one three payment so for us to keep track of that and explain it to cater for you is seem confusing to them, but at the end, they say they understand that they have an email information they said yes we understand it 14 curious.

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WLWV Meeting Room: You mentioned other districts, they do that yeah they do.

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WLWV Meeting Room: You know, as a business manager i'd rather pay everybody 14 and then have the 10 that's where you take care, Sir, but districts have different contracts as part of negotiations and mine, which usually isn't what.

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WLWV Meeting Room: Is happened during that so but I would always have 14 checks because in your benefits are tied in in the way the system works you tie the benefits to the payroll when they don't have.

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WLWV Meeting Room: That paycheck you have to do other word for the July and August, because they're still earn in July and August.

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WLWV Meeting Room: yeah it's more complicated.

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WLWV Meeting Room: question about something you just said about meeting to explain the system to tk can do and i'm just curious about the process you work with implementing months with.

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WLWV Meeting Room: A typical experience for you in your office to need to explain things to them or how much that stuff was going on.

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WLWV Meeting Room: They say not typical because my two year period with will call me down, though they never asked the question, they understand it, so this data was auditor that.

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WLWV Meeting Room: not understand what the default in month versus the 12 months, and I say the director is we pay salary on July 1 to June 30 but the conductor group and a 10 month.

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WLWV Meeting Room: They start their paycheck in September so, therefore, is how to class for the curious 13 and 14 with it July and August we have who back in June, so we expect that to them and they they just not understand it and.

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WLWV Meeting Room: Another point it makes it harder is because in May, when we send out an email to staff.

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WLWV Meeting Room: It to staff to differ method to receive their payment some did I say three page jack and some year they say one lump sum.

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WLWV Meeting Room: So for decatur to compare year to year that how come, two years ago, or the last two years, only 2 million and now 3.5 million so that's it based on the rough an object over the year.

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WLWV Meeting Room: I have a question i'm.

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WLWV Meeting Room: On the timing, so the audit was actually do in January and when do they When did they start working on.

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WLWV Meeting Room: That was going like this, I asked for the schedule, because this was so confusing to me.

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WLWV Meeting Room: Being an auditor and knowing and so thinking me the schedule of ISIS what did they give you a work schedule, because you have to have you have to know what you need to prepare for.

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WLWV Meeting Room: And she has the dates where is who is needed by 726 and I asked her how she said to them and electronically so here is the schedule, so they have all these in July of or August of last year, all these work papers, so the question is, if they have all this at that time.

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WLWV Meeting Room: Then we're here at this point.

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WLWV Meeting Room: I don't understand why it's taking so long to get it done you don't get there is problems, then go over the work papers.

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WLWV Meeting Room: And let's get it cleared, so we can move forward and get it done so January is a drop dead date, yes, you can get extension you don't like to get an extension.

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WLWV Meeting Room: The early get the audit and presented to the board, the better it is you move on to the next year because right now.

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WLWV Meeting Room: If i'm in since position i'm trying to face one on it and motivation other year and you're going to do budget, you have three things going at the same time, which is difficult, you try to minimize that as much as possible, so.

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WLWV Meeting Room: When I look at this and the schedules there and it's surprising.

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WLWV Meeting Room: So director, so this is a list of the few words that we can send out to me in late June, and then, when I received the list I.

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WLWV Meeting Room: will take Korea which tasks, and then they get back to me, and then we download it information into the secure right dictator.

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WLWV Meeting Room: You know, are they supposed to go back in on the schedule and then check received.

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WLWV Meeting Room: Because it says the needed Day and it says who's responsible for it yeah it.

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WLWV Meeting Room: Is my note and staff so when I say you know this one, it need, and I put the deadline for my style and then other other places, I put staff name and I put a deadline for it, so I told everyone that I need it by these days I can put it in a secure gotcha and what they what they did.

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WLWV Meeting Room: Well, it looks good here yeah so says Dun Dun Dun Dun nothing.

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WLWV Meeting Room: it's it's a work in process you work back and forth to get things done and it's just like any project you do.

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WLWV Meeting Room: So, going back to the latter, they use the term material weaknesses on skills, knowledge and experience, and I already roughly discuss discuss that I would have a difficult time doing the gaps, right now, with all the requirements and the gadsby and keeping up with that.

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WLWV Meeting Room: One that just came out recently just to give an example, can be 87 I think is on leases.

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WLWV Meeting Room: The auditing firm want to know if I was interested in something to USD, and so I watched it I said i'm glad every time.

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WLWV Meeting Room: I said that to myself, because going through all that, because every year there's new words we come up with new words i'm going to go ahead and ask a question I have about that got processes kind of only until the end sinking into a bit about more conversational style and.

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WLWV Meeting Room: To what extent at the beginning of the work was it made clear that K w works primarily with the gap process, and that was the framework that they were going to expect the district to be working with.

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WLWV Meeting Room: part of my motivation for that question is how often is this going to come back God Is this something that other auditing firms are going to expect of us to what extent do we need to be.

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WLWV Meeting Room: moving toward that process is that the tide that we're moving so two parts, I think how much how clear was that, at the beginning, and to what extent do we need to move that direction.

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WLWV Meeting Room: I think a little bit unclear for us that that the Kingdom because they are new articles that came in, so we thought Oh, maybe new auditor, they have different styles of asking question so we walk in with them and then do we recognize that gap, and do you know.

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WLWV Meeting Room: So this is that we do ask you about so So this is the other force employment benefits program and every year we will hire another company it specialized in auditing the force, including.

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WLWV Meeting Room: The company name be super stolen come in and perform the audit and then we use this audit truthful give it direct to the auditor and then one day coming back and I met a lot of trust month Based on this information, then we realize that lie a lot yeah into our audit.

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WLWV Meeting Room: Okay, so what's not an upfront thing it was really something that became clear, are you starting to dive into the work with them, correct and then I think the next part of that is Is this a trend that we should expect to continue in this is now a lift that business office needs to make.

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WLWV Meeting Room: I think tk w is going to be extremely.

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WLWV Meeting Room: there's been more restrictions put on auditors and they interpret different.

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WLWV Meeting Room: Other authors.

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WLWV Meeting Room: and understand the skill level in the office.

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WLWV Meeting Room: because they know that they will not be authentic about real small districts, they will be able to get the audit debt, so they have.

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WLWV Meeting Room: Taken that that's still doing that because they will never get the audit that tk w went completely over here with West live, and I think like anything you go over here, and then you come back.

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WLWV Meeting Room: I think districts are going to have to get more familiar because there's more restrictions, going to be put on but I don't know if they will be able to do 100% of the gap, they should have all the records reconciled and everything ready for it.

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WLWV Meeting Room: And the alternative to the system into.

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WLWV Meeting Room: But I think it's going to move more that way we're getting more restrictions on everything, so I think yes.

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WLWV Meeting Room: The district needs to prepare for them.

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WLWV Meeting Room: So it sounds like both are true that we that this is the direction, things are moving in that direction and typically an auditing firm would be more flexible with.

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WLWV Meeting Room: The partner systems that have been in place for years for decades yeah be a partner in helping it also sounds like a good question that we should be asking the new auditor up front yeah how things should be prepared, is it going to be under the gap or the modified gap right right yeah.

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WLWV Meeting Room: But what I keep coming back to is using the word partner, and you know, I think, for us, wanting to have an outside otter obviously.

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WLWV Meeting Room: Important wanting that to be a partner that can augment and help our existing staff we don't have an unlimited personnel budget and so.

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WLWV Meeting Room: We want to hire or accountants, or do we want to hire more teachers and social workers and so to me as you talk about partnership and having an audit from that can work with our highly competent staff.

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WLWV Meeting Room: To fill those gaps is a better allocation of staff time and resources in my life, so I mean I just feel like that partnership term I hear you say that and I think that's so important, you may not be right to give it, yes, but.

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WLWV Meeting Room: What I say partner is.

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WLWV Meeting Room: they're giving you the information, so you can do the job.

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WLWV Meeting Room: that's the way I look at it and i'm assuming that.

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WLWV Meeting Room: Are our last one, the audit was done last year there was, they did not do they did the gap for us right there wasn't an expectation that so that's what that's how we have always so thank you for that Claire I really appreciate you kind of bringing that out.

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WLWV Meeting Room: Because that's something I read through this letter I don't yeah every cell in the last five years, I have not done, the gap statements.

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WLWV Meeting Room: I have not done it i've got all the information put together, I know how to get put the financials together, the balance sheet and everything reconciled they put the rest together.

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WLWV Meeting Room: So.

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WLWV Meeting Room: Going back, I wanted to highlight the skills and knowledge, because I would fail on that part there.

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WLWV Meeting Room: there's a lot of items in there, regarding deal with it comes to Claire clarity and communication.

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WLWV Meeting Room: With them I don't know why there's such a gap, I said this many a time why there's such a gap from the information going to them from them not getting back, and I have talked to them that's here, there is just the January is the first is the due date.

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WLWV Meeting Room: reconciliations i've talked to said about that, I believe Aaron sunlight sunlight sorry I asked you before and I still pronounce our job.

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WLWV Meeting Room: guys again afterwards.

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WLWV Meeting Room: But I will see your name again.

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WLWV Meeting Room: Before we move on, I would like to.

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WLWV Meeting Room: buy a little bit about the second one, when you say management up to you to follow us.

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WLWV Meeting Room: Five, and it was one important yeah so this one, they were talking about special revenue fun, so, as you know, we have like General RON Paul was a fun 100.

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WLWV Meeting Room: So revenue one 200 yep services on 300 and then capital fund 400, so there are some programs that he posted under general fund such as Community services and then proceeds.

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WLWV Meeting Room: And medicare program and so when I preview when I do the budget yeah for the lottery year here.

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WLWV Meeting Room: I review order school district, and some scone bit Ly type of July and we'll put will put community services under general fund was a special revenue.

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WLWV Meeting Room: But out of school districts back in Reno what is under special revenue and we are putting our community service and medicare program under special revenue for over three decades.

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WLWV Meeting Room: So I checked in with O D E and O D say it fine either way, and then I brought it out to DK w I say hey I know our program put it in special revenue.

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WLWV Meeting Room: I think it should be in general fund, what do you thing and they said yes it gets me in general fun and I also let them know that God is is okay either way.

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WLWV Meeting Room: so bad at what they did about so I said, you know going forward, and I also go back and verify that with some you know we'll talk a rondo and poly Roger.

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WLWV Meeting Room: Because this they affect their work in a project yeah so I emailed at both audit that and I say hey based on the audit report that you have, for us, you posted your day for us to put in special revenue, but going forward, you know i'm thinking to move it to general fun, do you have any.

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WLWV Meeting Room: problem and they said no, they have no problem either ways by said this about.

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WLWV Meeting Room: It there's always a Gray area where items should be recorded.

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WLWV Meeting Room: And I think one thing is consistency from year to year for compatibility.

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WLWV Meeting Room: You don't want to move things from one area to another, because when you do analysis, you want to look at prior year to this year, especially in budget is you know you do budget, you have.

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WLWV Meeting Room: The prior two years bought it, you have the budget, and you know this, so you don't want to have numbers jump around all over the place and.

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WLWV Meeting Room: it's always a great area where funds are recorded, especially special revenues and trust you know food service has been everywhere in the accounting system.

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WLWV Meeting Room: And it's just history, so you try to keep them consistent you work with the audit where they want it and, but you budget.

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WLWV Meeting Room: You might be in your budget you go over all the 200 separately, but you only adopt the budget on the 200 is global.

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WLWV Meeting Room: Setting you don't do each individual fun so that's why you want to compare ability and I try to keep them the same place unless they're really out of place when I go into a district, and most of them have anything to fall in the 200 special is right well was there a.

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WLWV Meeting Room: Reason that you wanted to move it from where it has traditionally been to this to the gentleman from the special phone was there a rationale behind that yes, yes.

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WLWV Meeting Room: So for Community services that I do, and I think, because if we need special revenue for so long, is it because the ideal is the program should be able to set of self sustain.

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WLWV Meeting Room: be able to cover their costs, but over the latter you, you would have corvus we were able to rent out of that city so days the income that coming in wasn't able to cover all this fantasy expenditure and stuff in there, so when we put this under special revenue.

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WLWV Meeting Room: Every year is so deficient deficits in that account so when we move it to the general fund in embedded like order function like a piece that offers we add a cost Center we're not the benefits without revenue generation so death for the support the repair order revenue that comes in.

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WLWV Meeting Room: So what does specify what the community service.

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WLWV Meeting Room: We recognize that this program is important to support our Community so we're going to have this at the end of the supportive Community regardless with Brett even are not their fault.

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WLWV Meeting Room: We send that I think it should go to the general gotcha that makes us.

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WLWV Meeting Room: Go I could go over each one of these, they have the same thing all over same thing all of them saying competence yeah they be roughly or they say review your internal control or or reconciliation right, and when I look at this.

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WLWV Meeting Room: I know they're saying out just to protect themselves there's no question and that's fine that's their observations.

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WLWV Meeting Room: And you please just clarify what you just said there well I didn't like the pot, I believe that.

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WLWV Meeting Room: I believe, if another company wants some form of school one some and they want to reference and and Westland would do that anyway, my son will still go with through that anyway, but.

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WLWV Meeting Room: They don't want to get a bad reference, and then they come back and say, well, this is what happened, you know, to defend themselves, I would think something along that I can see that the.

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WLWV Meeting Room: Second part of what you said about the that's fine that's the one part, that I would probably disagree with.

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WLWV Meeting Room: You said that they brought this to as a way of sort of defending themselves, perhaps in the work yeah.

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WLWV Meeting Room: that's what that's the paint the picture that's becoming clearer and clearer to me the part that I disagree with a set with that's fine because I actually think it's not okay for 10 K w.

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WLWV Meeting Room: A letter like this yeah I would have never done it but right incorrect word.

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WLWV Meeting Room: Well, I mean.

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WLWV Meeting Room: Those long gaps with four responses are unacceptable because they don't have to answer to the time frame for the lack of response she does.

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WLWV Meeting Room: You to ultimately we do to the Community, and when you don't have a good explanation for why you're not getting a response from August to.

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WLWV Meeting Room: December are these long gaps and they've had the information and what it says is that there's a lack of accountability, or the internal controls and tk up.

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WLWV Meeting Room: Right you don't leave people going on, that that long without an answer, and we know even we personally file taxes that if your accountant doesn't get back to you after you've given him or her your information.

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WLWV Meeting Room: And it's been an extended period of time you're on that phone right away like what the heck is going on right.

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WLWV Meeting Room: And my issue is.

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WLWV Meeting Room: They have the urgency with the district, because the state school funding and grants, because you can't claim any grants.

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WLWV Meeting Room: or state school support money after January until the audits in there.

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WLWV Meeting Room: So, can you tell me a little bit about what that experience was what's going on between the communication it's like you said director Taylor I.

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WLWV Meeting Room: file my taxes, I don't hear my calm for two weeks i'm on the phone we're like it, and then my accountant, since we back you need to provide you know blah blah blah blah, and I think oh man, I thought I was done and then.

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WLWV Meeting Room: generate more report back and then I wait two weeks, and you know, so this is happening and I guess, this is fairly common.

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WLWV Meeting Room: Can you describe a little bit what this process was like so i'm getting really clear G, the gap, this is the gap seems to be one of the key things that created the dismantling of.

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WLWV Meeting Room: This process but there's also the communication aspect So what did keep tk w do or not do to facilitate this process, so the process thought is at the base and russ the furious here.

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WLWV Meeting Room: They send us an email and say they will want to be on site during the second week of August and they aside five staff members to come on site.

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WLWV Meeting Room: And for our experience that you know, like sub you know we'll talk a Redondo, they will come on site boss to visit with the staff and to learn about internal control.

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WLWV Meeting Room: And then they left and they will come back in November to complete the audit so 40 kW when they came on site in August, but three, which was by staff member.

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WLWV Meeting Room: They spent gross to how to close, so they can complete the audit during that time and me and my staff say no way we can complete the book done because the.

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WLWV Meeting Room: crew payroll for August, and then we have a lot of invoices that from another school bus Secretary did not come back into August 27 to submit or this invoices to the business office and lie.

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WLWV Meeting Room: Down say it's impossible for school district to close the book and do like September 30 so after doing which on side, what was the basic what rest of our.

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WLWV Meeting Room: Jobs are they have a lot of interview with me my staff can support and and an art director festival and then after three which they go away.

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WLWV Meeting Room: And then, in September, when we have apple brandy we send them an email and we say hey our book we're ready for you to audit.

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WLWV Meeting Room: And they said well sorry we have our Labor ship to another organization, so they have a group of people to work for this organization and I moved to another organization so by the time we ready in September, they have no staff available just for us.

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WLWV Meeting Room: So, in December, late December, then returned back out to us and actually we emailed in there, we said you, we have a deadline to ODP and not only our audit report.

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WLWV Meeting Room: Before Christmas, so we always call that Christmas present for us, so we have a portion name and they sell case we will point to get there and visit an email from DK w nice to have a.

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WLWV Meeting Room: partner, say, I will try to gather some staff to what, for your to do what, for your district over the weekend and evening.

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WLWV Meeting Room: So that's a communication that we have so at that time, we have a different staff member from that team reaching out to us and what what our team and our and myself.

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WLWV Meeting Room: And like they have a student intern so they have to not be so they asked him the same question back in August already asking us.

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WLWV Meeting Room: So, then, we provide enough information in December and then in January, we continue to provide information and and we thought it we talk we gather enough information for tmp conspiracy January 28 all the way to watch.

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WLWV Meeting Room: I did not hear anything so I thought, maybe they they've got about too complex, so I reached out, and I say either anything from the business office that do waiting for.

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WLWV Meeting Room: or any additional information that you want from us and in every single email, I always say we will drop everything direct this priority, and then they come back and it's just you know I have on this.

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WLWV Meeting Room: So this even.

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WLWV Meeting Room: send it to you, so this is a list that capture all of the engine in the female information, since January.

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WLWV Meeting Room: I reached your now almost every day, is today, and this information we shared with OD to let them know what's going on, and they have that the page.

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WLWV Meeting Room: That makes sense, so we did not hear from them so they left it August and we then you corresponded with them Defense at the end of Sep tember went to say yeah we're done with our books.

308
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WLWV Meeting Room: Then you did not hear from them again until you reached out to them.

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WLWV Meeting Room: In December, when I say we're ready and they say sorry we didn't have staff available right.

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WLWV Meeting Room: And was there any discussion when you reach out to them in December and they said they didn't have staff available, and they were going to try to do it on weekends and he needs was there any discussion for them saying.

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WLWV Meeting Room: giving you the warning or alert like hey we might not have your audit done on time, did they ever that see where they stand for the January deadline Okay, we said okay i'm not saying yes, but then yeah and then January, they.

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WLWV Meeting Room: When they make as many as they want, but they went quiet and I was reaching out and then they went guess, then the law.

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WLWV Meeting Room: And while it was never stated directly on their court a wonder, we had is you know is around staffing shortage.

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WLWV Meeting Room: Because they did send a different teams and set that distance and interns and we were going through staffing shortage, so there was some grace on our part and that it's an unusual year across the nation and do an extension and give them the time that they needed with their staff available.

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WLWV Meeting Room: So I am on a regular communication what already selected out of hi fi because we have the same so we can we can do release our space for fun different sub you know the auditor want to put your best life further so I have to have to loosen dress myself so odd say twice.

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WLWV Meeting Room: yeah according to this just reading halfway through.

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WLWV Meeting Room: During this past month, it appears that there was a lot of outreach on your part, and then not hearing anything back from them and then an outreach and event yeah same ad spend operation you're providing it and then not hearing anything from them for several more days and so.

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WLWV Meeting Room: yeah I imagine that was frustrating yeah so i'm on I am on a task reminding them as.

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WLWV Meeting Room: Well, but it also well for me.

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WLWV Meeting Room: But as a business owner what it tells me is that.

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WLWV Meeting Room: When you generate a letter of this magnitude.

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WLWV Meeting Room: Never pointing the finger back at yourself.

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WLWV Meeting Room: And then I see that on all the correspondence that went through to try to reach out and contact you.

324
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WLWV Meeting Room: What it tells me is you know your lack of communication existed.

325
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WLWV Meeting Room: And this is a cover your tail type of letter because you don't want to be in jeopardy of ever being able to secure a future school district as audit piece of business and I could be wrong there.

326
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WLWV Meeting Room: I highly doubt that but.

327
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WLWV Meeting Room: This letter came up quicker than major respond to an email.

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WLWV Meeting Room: And this is a 5678 page letter, so you have the capacity to respond to simple emails if you can generate an eight page letter within 248 hours to cover your rear.

329
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WLWV Meeting Room: So you have the staff to do this, but she didn't have the staff to simply return an email say hey we're yet that doesn't make any sense to me.

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WLWV Meeting Room: Well, said.

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Well, said.

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WLWV Meeting Room: That i'm getting the sense in the room that there's an understanding of the responsibility that to kW takes and the.

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WLWV Meeting Room: the downfall of the of the botched audit attempt and.

334
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WLWV Meeting Room: To what extent is there any learning that you and your office take away that can be applied to.

335
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current situation and moving forward if any.

336
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WLWV Meeting Room: yeah I think oh what we learned from here is thank very clear what the auditor, at the very beginning, I think it's like director Tyler say or yourself say do, are you expecting.

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WLWV Meeting Room: breakfast and gap, because if.

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WLWV Meeting Room: What what kind of land that they look at.

339
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WLWV Meeting Room: Our days are black and white auditor, or are they a partner auditor so i've been very important for us to learn that very beginning, because if you are black and white, can you tell me exactly what your expectation, what do.

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WLWV Meeting Room: We get it for.

341
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WLWV Meeting Room: The partner, a generally do not do coming in, you look at our procedure you review our internal control you look at our book and then.

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WLWV Meeting Room: You know it's like so when people are selling a house, you have that inspector coming in and, especially, I will say Okay, you need to fix that before you sell your House and under cell receptor so the House, but if.

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WLWV Meeting Room: they're coming in, did not communicate abroad i'm with a seller, but then elder did a bias there by your don't buy it because they have some problem with the.

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WLWV Meeting Room: process of something, then that's a not partner, so I think it's very important for me and my business office to understand what angle that that.

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WLWV Meeting Room: Audit they're coming in, and you know it's time for the last three and a half year the business has been improved a lot by the Internet and Joe and reconciliation.

346
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WLWV Meeting Room: So internal control actually an ongoing improvement, so I safety, you know, so if we worry about safety would never get out of the House.

347
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WLWV Meeting Room: So what internal control is that ongoing keys that we have, through and the information that I have at anya in front of you is list out every single internal control that I can do what's in my authority you run through here.

348
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WLWV Meeting Room: So my first came on board I recognize that it's important to do the assessment, so I invite you witcher also by the CFO of black women who decided.

349
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WLWV Meeting Room: To come here on site to sit with every single staff at every single function to do the job assessment to make sure their job have enough skills, knowledge and experience to do the work.

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WLWV Meeting Room: And then, after dad revise your job description, to make sure it reflects to what they're doing because their job description it's a little bit out of date, then after that I perform the annual evaluation for staff.

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WLWV Meeting Room: So bass during my fourth year.

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WLWV Meeting Room: Practice the internal good job and then the second year that year we do quarterly so every single function in the business office telkom joining or the procedure so every single account payable accounts receivable grandparents.

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WLWV Meeting Room: Every single Conference, we have the procedure and everyone understands aspect we also great procedure for the school for Secretary how to do that but, given how to.

354
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WLWV Meeting Room: Broken side and how to do your credit card and purchasing order so that's all the internal control that I was able to put in during my time, yes to do.

355
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WLWV Meeting Room: But again, you see an ongoing and slide down say new software and staff come and go, so continue improving and continue, we have to review it's my.

356
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WLWV Meeting Room: question during your.

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WLWV Meeting Room: redefining all of the roles in those positions was after all of the roles had been redefined and that job profile created.

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WLWV Meeting Room: of your staff were there any staff that didn't meet those core competencies at the end of the year, when you evaluate them so, meaning that.

359
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WLWV Meeting Room: Maybe maybe they were successful highly successful or somebody was put on the action plan, because they didn't meet the call.

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WLWV Meeting Room: Did you have any staff that the one thing director tonight So be careful on this and we don't get.

361
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WLWV Meeting Room: too far into the weeds individual employee no i'm not i'm not talking about individual on this talking about across the board, not know who, that is, which is if they're not meeting the call, then this letter is true if they are meeting the call and the letters.

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WLWV Meeting Room: So what you're asking is based on the letter was their staff person in the business office who not an individual just across the board, just in general, was there any staff that didn't meet.

363
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WLWV Meeting Room: The read definitely after that what was redefined and they didn't meet her standards, after the role was defined.

364
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WLWV Meeting Room: And if that was a yes, then them saying that there that the staff is incompetent.

365
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WLWV Meeting Room: is correct and that would have happened if i'm understand the timeline like a year and a half or so 40 kW came on.

366
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WLWV Meeting Room: Open or a year or so before to kW tendency when you were rewriting job descriptions and that's easy I can move on here tonight, yes, when I first saw the customer yeah so what happened prior okay fair enough.

367
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WLWV Meeting Room: But and nope no staff member was terminated for that process right.

368
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WLWV Meeting Room: But what it did provide is where we're just training needs to happen across training and what this document is that stopped working together speaks to this daily said about.

369
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WLWV Meeting Room: What are the internal control procedures, what are the reconciliation procedures and what Dr us outline here is in the last three and a half years how she has implemented additional.

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WLWV Meeting Room: Ongoing internal controls, strengthening beyond what it looked like what she came in right and so there's even more in place and staff has regular weekly meetings and reviews.

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WLWV Meeting Room: monthly trainings so right yeah and i'm not just asked for director position i'm asking why should we serve a sophisticated.

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WLWV Meeting Room: Community and they're going to ask that question, Joe you're, not just for me your question yeah key because now if there's a statement here that says there's an appearance of staff, not knowing.

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WLWV Meeting Room: And that's not our assessment or does know they are trained, they are qualified and there are regular trainings and reviews of processes.

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WLWV Meeting Room: That they are dirty bound new director kind of action, because over that the assessment we dearly hammer now separate duty we don't let anyone like a with retailers that like for sample account payable process.

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WLWV Meeting Room: What this whole process the ap cannot review and approve the badger and then the one who review and approve the outer cannot run the check, so we really base that separation that up.

376
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WLWV Meeting Room: Well, what it tells me is that we can all employees to a standard that you have not expressed to them, and so you have gone through this in depth analysis explanation training.

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WLWV Meeting Room: And then you're allowed to assess I mean not allowed, but you can best assess if they're reading that, and so the analysis you put it on the front end pays off the back, end the caliber.

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WLWV Meeting Room: caliber business office you can I go back to the letter and just ask so since we're talking about we have this improvements to reconciliation so on page by halfway down, where it says right.

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WLWV Meeting Room: And tk w makes a statement you know, there appears to be a lack of reconciliations for most balance sheets prompt accurate anyway, you can read that right there So are we.

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WLWV Meeting Room: Do you have somewhat agreement with like you're still is your i'm just curious what your opinion is of that statement that yes, this is continuing to be a work in progress, there are improvements and I guess i'll ask don kind of just based on and then Dr Hughes also Dr.

381
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WLWV Meeting Room: We talked about this, and one of the one thing I believe in accounting that, especially the payroll accounts payable area that.

382
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WLWV Meeting Room: will need to reconcile on a monthly basis.

383
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WLWV Meeting Room: That is the expectation.

384
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WLWV Meeting Room: Actually stopped refuses response to make sure that the staff are doing that and her approval of that and I know they're doing it.

385
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WLWV Meeting Room: But it needs to be documented, so that when the auditor comes in that he they're aware, rather than making a generalization.

386
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WLWV Meeting Room: You know that you're not you can't defend yourself somebody throw something at you, you need documentation to defend yourself, and I know they're doing.

387
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WLWV Meeting Room: So, but I think anything in accounting, we all know, if you're in the accounting world, one of the main things is two things our procedures and reconciliations yeah Those are the main things, and so, when you do both of those.

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WLWV Meeting Room: Your fear fear Satan and you have good records.

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WLWV Meeting Room: and adopted us, can you just speak to that paragraph, so it sounds like my understanding is we are doing the reconciliation, we have been doing the reconciliation and it wasn't been.

390
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WLWV Meeting Room: There wasn't a.on my understanding and correct me if i'm wrong because they're not done on a monthly basis being on on his third quarter basis or whatever so so for bank reconciliation our fiscal account and do.

391
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WLWV Meeting Room: That.

392
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WLWV Meeting Room: On a cash.

393
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WLWV Meeting Room: basis so so on that, on the reconciliation I puts on the paper for you, we do it on a monthly basis, the only one that he don't do it monthly basis.

394
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WLWV Meeting Room: To help to reconcile reconcile.

395
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WLWV Meeting Room: Ensure reconcile order liability.

396
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WLWV Meeting Room: quarterly or yearly and that recommend that we should do it that's what I was referring thanks for always done on a monthly basis, but you might have liabilities that are there that need to be reconciled, especially purse medical those federal taxes state taxes, all those titles.

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The.

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Net that was just the one.

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WLWV Meeting Room: To two things I would like to just hear you speak up because I think if I was a member of the public, and I was not privy to this conversation I read this letter they would be the two topics or phrases that would perked my ears.

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WLWV Meeting Room: And then I also am curious start as far as Mr Stanley if you could.

401
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WLWV Meeting Room: From your perspective, what is the learning with the district would benefit from this letter M.

402
01:09:05.670 --> 01:09:18.990
WLWV Meeting Room: two topics here that would hurt my ears are the bonds payable and the top of that paragraph about property taxes and i'm wondering, Dr use if you could speak to.

403
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WLWV Meeting Room: You know what's what stated in the letter and how, how are you are actually doing function.

404
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WLWV Meeting Room: For the property tax what we do in our current practice is when revenue that we receive in July and August we post this in the current year.

405
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WLWV Meeting Room: decade of grief for us any revenue that receipt 6060 days after the bright idea post the fact.

406
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WLWV Meeting Room: that that is a different and we don't know we've been doing bass, historically, we were we've been late for no money coming into July and August will get forces in the current year and they say you know, according to gaff direct revenue received within a day.

407
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WLWV Meeting Room: Right yeah and we all get either one, but because the practice that we've been doing so many do we have currently.

408
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WLWV Meeting Room: Can I add to that the way the accounting works is the county treasurer collects it in June and then distributed to the district in July.

409
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WLWV Meeting Room: So that is really revenue for the previous year and then under gadsby there's 30 days after so what's collected July is supposed to be the previous year, however.

410
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WLWV Meeting Room: A lot of districts don't do that, and the reason they don't do that and think of how the state school support fund works.

411
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WLWV Meeting Room: That is an offset to your state payments so they might have started 15 years ago and the district they've always done it on July two like Westland has so they have 12 months in there, so they're consistent well let's all the way.

412
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WLWV Meeting Room: So what they've wanted you to do is switch the 12 months to 14 months so you're going to have a bigger offset against your states to support.

413
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WLWV Meeting Room: And let it get less payment well the auditors I work they just want be consistency 12 months 12 months, you know it's immaterial what you receive in June, July.

414
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WLWV Meeting Room: In their book it's more important to have.

415
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WLWV Meeting Room: The 12 months consistency so yeah you can change it according to that, but it's not major in my book, because I, I can tell you a lot of districts do it the other way, so I just tried to stay consistent from year to year and deal with what the auditor says, because.

416
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WLWV Meeting Room: You want to keep them happy, so if they want move it then you're going to have 41 year then you're going to start that way and don't go back and forth and.

417
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WLWV Meeting Room: yeah because I did I explain that right, we have about three taxes we we only would have to go back and explain like, why does do you help hold them.

418
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WLWV Meeting Room: accountable, so we have this and I have no problem me and my staff on oprah so we can say okay if they they wouldn't go with post it in a bright idea we can do that going forward, and we can document so everyone can can understand them, no reason why.

419
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WLWV Meeting Room: Okay, so what a born payable so again.

420
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WLWV Meeting Room: With the selling talking about the basics of how to practice so we only record revenue revenue coming and we've recorded Senator when it happened.

421
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WLWV Meeting Room: But this one is deeper into it when we did for the 1015 years later, so that we would not consider that a our manager said, therefore, we would not put that expenditure on our book, but according to the blue they do to modify.

422
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WLWV Meeting Room: Accounting so they want to just showed interest in that regard purpose.

423
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WLWV Meeting Room: So hold on with that threw me right there because you said they use the modified accounting for that, but they are using strictly gap for the rest, this is doing it again.

424
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WLWV Meeting Room: Okay, so bring it to him we've been doing it on modified well that's how correct and so would you budget your budget and your interest in it will be okay that makes sense that's how you're living your taxes right that makes sense yeah.

425
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WLWV Meeting Room: The only question that I have remaining for me is they had this recommendation at the tail end of the letter on page eight.

426
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WLWV Meeting Room: And then last year as a second to last paragraph, the.

427
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WLWV Meeting Room: Last two sentences, says the district should consider forming an audit committee to assist the Board of Directors and discharging this responsibilities to the district citizens.

428
01:14:07.320 --> 01:14:19.260
WLWV Meeting Room: Taxpayers bondholders and others the audit committee audit committees objectives and responsibilities should be set forth in a written document approved by the board, so my question would be.

429
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WLWV Meeting Room: For you don do other districts have an audit committee i've been part of the audit committee mobile good, most of them have or not have it or know, most of them don't.

430
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WLWV Meeting Room: Because it's a public document and it's presented to the board, and they can come and listen and ask questions or whatever work with that it automatically Glasgow had one may have went down there and.

431
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WLWV Meeting Room: They it's broad yet with certain patrons and certain and the board and that and they go over the audit but it's no different than bring it the board me so yeah that's the way I look at it it's it's another meeting but.

432
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WLWV Meeting Room: i'm sorry.

433
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WLWV Meeting Room: I didn't tell me, am I interrupting back on that can you just describe a little bit about.

434
01:15:10.650 --> 01:15:17.790
WLWV Meeting Room: Typically, like long range planning committee Budget Committee, these are board appointed positions and they have you know, a typical timeline that they follow and its.

435
01:15:18.210 --> 01:15:25.110
WLWV Meeting Room: purpose, can you tell me about an audit committee, how how folks are typically bound for that committee, and what their purposes.

436
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WLWV Meeting Room: of weight class done they have their board is part of it.

437
01:15:32.490 --> 01:15:38.970
WLWV Meeting Room: And then they have TIM, which are from the clackamas cst is on it cuz I used to be on it.

438
01:15:39.540 --> 01:15:51.300
WLWV Meeting Room: And then they have patrons have interesting what whoever what they have so many, and you can ask Mr Spielberg over there, exactly how they go about that, but.

439
01:15:52.020 --> 01:16:02.970
WLWV Meeting Room: They go over the internal controls and the audit at the meeting and it's the I guess it really the purpose is to be open about the audit and and to share.

440
01:16:03.900 --> 01:16:17.070
WLWV Meeting Room: But you also do it at the regular Dorothy, so I would almost be like this where, if this was what if this was actually not a not as dry as more or less is more conversation than the auditors there two.

441
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WLWV Meeting Room: Sittings happen, I think, like 30 bucks as one.

442
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WLWV Meeting Room: person and it tends to be a Community Member who's an accountant, and so I think advertising and welcome to the whole community into a conversation, similar to what Mr Stanley is.

443
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WLWV Meeting Room: Suggesting is actually a more transparent and open way than to say, this is a committee and only this committee it's not about it would be my takeaway.

444
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WLWV Meeting Room: You ask another question, what did I gather and what have you and I think that's a very important one, and we can close with that yeah.

445
01:16:54.630 --> 01:17:07.680
WLWV Meeting Room: Because I think that I, you know I received letters and I had like stomach it, you know and and then what you do you take back then you read it again and again, and you take the process.

446
01:17:09.000 --> 01:17:12.900
WLWV Meeting Room: And, and how the program and I think this is.

447
01:17:14.040 --> 01:17:23.760
WLWV Meeting Room: it's an eye opener auditors are different number one and the fee schedule set everything in concrete black and white, with.

448
01:17:24.360 --> 01:17:32.010
WLWV Meeting Room: With what things when you have things such as such, the next thing is to redo your procedures, just to make sure it's not.

449
01:17:32.610 --> 01:17:40.080
WLWV Meeting Room: it's it's an ongoing like you said but annually and make sure they're clear and shared with the auditor they meet their expectations.

450
01:17:41.070 --> 01:17:50.490
WLWV Meeting Room: I have no problem with that whatsoever and then review internally your reconciliations like I said at the beginning that's the thing they keep mentioning.

451
01:17:51.300 --> 01:18:01.530
WLWV Meeting Room: And just make sure that when your next all of the information comes in all those things are done and you're transparent with the board and everything.

452
01:18:02.160 --> 01:18:17.220
WLWV Meeting Room: Because you're hiring the auditor they're working for you, just like I am here for you and and to be transparent, those are the three things I I take positives from it, I know, when you read it, you say you wish you'd never got this letter but.

453
01:18:18.360 --> 01:18:25.620
WLWV Meeting Room: This is their view and solve for the next order, the best way to get it be proactive.

454
01:18:29.940 --> 01:18:35.460
Anything else that you'd like to say propagates before I start, the meeting or any other question.

455
01:18:37.800 --> 01:18:43.290
WLWV Meeting Room: You know the only other question that I would just love to hear your opinion on it's just our decision to.

456
01:18:43.950 --> 01:18:59.850
WLWV Meeting Room: move to to terminate the contract with tk w and just kind of your assessment of how we're doing that and yeah all through those three times today, do I want a cup of coffee and I don't drink coffee, because I like to sleep at night.

457
01:19:01.530 --> 01:19:05.160
WLWV Meeting Room: I would have not been sleeping in January, February.

458
01:19:06.660 --> 01:19:13.950
WLWV Meeting Room: I would have been stressed i've been stressed before, but I would really fit stress and to me.

459
01:19:15.060 --> 01:19:20.190
WLWV Meeting Room: I think it's the responsibility of the auditor to get the audit why you hire.

460
01:19:21.210 --> 01:19:21.990
WLWV Meeting Room: And I think.

461
01:19:23.670 --> 01:19:32.580
WLWV Meeting Room: it's like when you do a bond construction benefit those when you have school opening in September, you expect that construction company that have that building ready.

462
01:19:33.570 --> 01:19:46.260
WLWV Meeting Room: And January is when the audit supposed to be done, and I believe it's their responsibility to be here, working with you or talking to the super tenant and saying i'm not getting this in this have to have it done so.

463
01:19:47.850 --> 01:19:54.210
WLWV Meeting Room: I personally believe it's the auditors responsibilities to get that that's what they're hired for because I believe there is definitely.

464
01:19:55.170 --> 01:20:12.750
WLWV Meeting Room: I think I know the answer, but just to keep it up you ever come in person and sit in your office with you and talk about like in this final our final month like no, we need this, you know, there was no there was no no communications or meetings about.

465
01:20:15.000 --> 01:20:16.410
WLWV Meeting Room: Work product that.

466
01:20:18.360 --> 01:20:30.030
WLWV Meeting Room: I wasn't you know didn't call me in on any of these emails or other means warrior March or April that about in February, March, April may have not heard from them no concern should know.

467
01:20:31.500 --> 01:20:44.370
WLWV Meeting Room: In January, which we stayed in in the meeting in January when they chose to disengage from your contracts is when I was brought into the conversation will be alerted that.

468
01:20:44.940 --> 01:20:53.700
WLWV Meeting Room: We don't believe will finish this year's but we don't believe we can continue to keep you as a client or the subsequent two years, and I think I mentioned, they also drop.

469
01:20:54.420 --> 01:21:04.200
WLWV Meeting Room: Another district again our assumption at that time was lack of staff we had heard that other auditing firms were closing with lack of staff.

470
01:21:05.610 --> 01:21:16.680
WLWV Meeting Room: We thank them said, we do expect the audit to be completely and no doubt the staff will do a great job and finish it, and thank you for doing that, and then we alerted the board and you went through.

471
01:21:17.670 --> 01:21:35.490
WLWV Meeting Room: That process to secure the next so they never gave you a reason, when you when they said hey we're not you know going forward we're not going to have you as a client anymore, there was no, it was just more of a statement versus two men that will pop out or don't know.

472
01:21:37.380 --> 01:21:41.190
WLWV Meeting Room: yeah so we have one more question from doctors are super number so.

473
01:21:42.300 --> 01:21:42.750
WLWV Meeting Room: I think.

474
01:21:44.250 --> 01:21:45.960
WLWV Meeting Room: More or less my takeaway is.

475
01:21:48.750 --> 01:21:59.610
WLWV Meeting Room: tk tk w whatever team they assigned in August, when they came out they didn't that particular team didn't truly understand how.

476
01:22:00.690 --> 01:22:03.570
WLWV Meeting Room: Westland Wilson bill or how many school districts.

477
01:22:04.920 --> 01:22:11.760
WLWV Meeting Room: Do their books on based on a payroll and everything goes through September 30th.

478
01:22:12.480 --> 01:22:19.680
WLWV Meeting Room: And they were expecting to have the books close, but a lot of teachers and the accountants and don't even show up until the end of August.

479
01:22:20.580 --> 01:22:27.780
WLWV Meeting Room: So they had a window assigned a team assigned to a three week window we missed that.

480
01:22:28.740 --> 01:22:40.530
WLWV Meeting Room: And then, when we were ready again, or when they were ready they had interns that probably didn't really know a whole lot about schools again back in December.

481
01:22:41.340 --> 01:22:57.300
WLWV Meeting Room: And then, it was a very limited team that could not meet the deadline by January, and then there was just this so stain or darkness until March, when communication on your end went her.

482
01:22:58.860 --> 01:22:59.490
And then.

483
01:23:00.720 --> 01:23:23.880
WLWV Meeting Room: Limited communication with we knew this we knew that yeah because by April seven when I reached out to either add additional information you need from us, or if, at any information, you are waiting for us no Can you give us and conflicts less responsive is impossible.

484
01:23:25.170 --> 01:23:39.900
WLWV Meeting Room: spot on there, but what I would like to say is you know, I have to have a dog business office staff in that office very confident in doing their work so due.

485
01:23:40.950 --> 01:23:53.970
WLWV Meeting Room: to receive laughter laughter is nothing in here Julie news to us because either information we brought up to the attention when we recognize that we brought up to the attention.

486
01:23:54.420 --> 01:24:08.100
WLWV Meeting Room: or this one with talking to them throughout the night working with them, so to have the opportunity like this to present ourselves what a boy to public Community Member I truly appreciate it.

487
01:24:11.730 --> 01:24:20.460
WLWV Meeting Room: Before we conclude I I just feel compelled, as also as a superintendent to make statements and, first I want to say is that.

488
01:24:22.950 --> 01:24:31.350
WLWV Meeting Room: To echo Dr hughes's description of her staff it's an exceptional team you don't get years of clean audits.

489
01:24:31.920 --> 01:24:40.290
WLWV Meeting Room: And awards, and even the additional award Thank you director why that you go forward that recognizes exceptionality at the team.

490
01:24:40.830 --> 01:24:51.150
WLWV Meeting Room: In all these years and then this apparent different characterization of the same group of people something's off with that and.

491
01:24:52.140 --> 01:25:08.250
WLWV Meeting Room: To me, the team that's in our office doing our work is reflected in the audience that we have done and that's the true reflection of our exceptional team, so I I received this letter took incredible offense to.

492
01:25:09.450 --> 01:25:10.920
WLWV Meeting Room: The choice of words.

493
01:25:12.090 --> 01:25:14.130
WLWV Meeting Room: Under the terms, it appears that.

494
01:25:15.240 --> 01:25:18.240
WLWV Meeting Room: To characterize our team that felt disparaging.

495
01:25:20.070 --> 01:25:24.240
WLWV Meeting Room: and unprofessional it's an exceptional team.

496
01:25:25.410 --> 01:25:26.100
WLWV Meeting Room: Second.

497
01:25:27.990 --> 01:25:29.880
WLWV Meeting Room: If there is any public.

498
01:25:30.960 --> 01:25:40.080
WLWV Meeting Room: suggestion or assumption that our decision on April 11 to terminate the contract was to avoid.

499
01:25:40.860 --> 01:25:52.110
WLWV Meeting Room: disparaging language which we had no idea was going to be written in this letter or to avoid what perhaps was found is also completely untrue, we knew.

500
01:25:52.920 --> 01:26:00.420
WLWV Meeting Room: All these items in the letter we knew in August, but they were confused about the 12 in the 14 month.

501
01:26:01.380 --> 01:26:09.210
WLWV Meeting Room: we've known about they've done the internal controls feedback has been going back and forth when when when the communication was there.

502
01:26:09.870 --> 01:26:13.920
WLWV Meeting Room: And we fully expected with all this knowledge that they would deliver their report.

503
01:26:14.520 --> 01:26:26.430
WLWV Meeting Room: We wanted it in January, we want it, in February we wanted it twice in March and we expected by April 4 that they would deliver their report, so there was never.

504
01:26:27.180 --> 01:26:37.830
WLWV Meeting Room: Any action on the part of it, they want to say we're worried about what they're going to share let's terminate the contract we wanted them to share we wanted our audit done.

505
01:26:38.430 --> 01:26:45.510
WLWV Meeting Room: Whatever they were going to share, we need our funds released to us and we knew what they had finding there's nothing.

506
01:26:46.350 --> 01:27:00.750
WLWV Meeting Room: surprising in here what's surprising is their choice of words and describing what they found to an extreme to characterize it as either in competence in the part of the staff because they choose a different methodology.

507
01:27:01.830 --> 01:27:07.560
WLWV Meeting Room: Or to reflect poorly on our part, so I feel compelled that that needs to be said.

508
01:27:09.390 --> 01:27:17.160
WLWV Meeting Room: Our staff is exceptional they've been patient they've worked hard they've been under a lot of stress, but but they've been working through it.

509
01:27:17.760 --> 01:27:30.540
WLWV Meeting Room: And i've been very careful to be positive and not to disparage the company to all of this, unfortunately we get to this place where when one side is claiming something.

510
01:27:31.800 --> 01:27:37.620
WLWV Meeting Room: I finally feel compelled to say more than I have in the past in public and i'm sorry that I have to do that.

511
01:27:38.850 --> 01:27:42.960
WLWV Meeting Room: But I owe it to my staff for the Community to know how exceptional they are.

512
01:27:44.760 --> 01:27:47.040
WLWV Meeting Room: or any other internal.

513
01:27:49.260 --> 01:27:50.970
WLWV Meeting Room: Audit you know.

514
01:27:53.340 --> 01:27:57.900
WLWV Meeting Room: For us in here, they said Internet window as of the.

515
01:27:59.100 --> 01:28:08.730
WLWV Meeting Room: Last segment and we have extensive survey prior yet it's so close it up yeah it's 930 so I.

516
01:28:09.960 --> 01:28:21.510
WLWV Meeting Room: just go that when I seem to be seeing around or it's just an affirmation and tk, why not execute on what they were hired to do, and that the termination seems.

517
01:28:23.100 --> 01:28:23.910
WLWV Meeting Room: Appropriate.

518
01:28:25.740 --> 01:28:26.430
WLWV Meeting Room: That we're.

519
01:28:27.930 --> 01:28:29.730
appreciation to you and your staff for.

520
01:28:30.870 --> 01:28:31.770
WLWV Meeting Room: being willing to.

521
01:28:32.940 --> 01:28:39.510
WLWV Meeting Room: operate transparently and expression, certainly, above and beyond my private sector.

522
01:28:41.280 --> 01:28:42.450
WLWV Meeting Room: And with that.

523
01:28:44.580 --> 01:28:44.970
WLWV Meeting Room: Thank you.

524
01:28:48.480 --> 01:28:49.830
WLWV Meeting Room: for making yourself available.

525
01:28:52.830 --> 01:28:54.450
WLWV Meeting Room: so very much.