Jul 19, 2023 Executive Committee

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COME TO ORDER.

[1. Meeting called to Order The AACOG Executive Committee is meeting in accordance with Chapter 551 of the Texas Government Code (Open Meetings Act). As such, the Executive Committee reserves the right to retire into executive session concerning any of the items listed on this Agenda whenever it is considered necessary and legally justified under the Texas Open Meetings Act.]

IT'S 10 O'CLOCK IN THE MORNING.

AND THIS IS THE ALAMO AREA COUNCIL OF GOVERNMENT'S EXECUTIVE COMMITTEE MEETING.

UM, SO I'VE CALLED THE MEETING TO ORDER.

LET'S HAVE A ROLL CALL.

YES, SIR.

GOOD MORNING EVERYONE.

JUDGE KELLY HERE.

JUDGE STEEL HERE.

MAYOR PERS HERE.

COMMISSIONER CLAY FLORES.

MAYOR DE LEON.

HERE.

JUDGE EVANS IS EXCUSED.

COUNCILWOMAN R GARCIA, JEAN RODRIGUEZ FOR HER.

MR. HAS LOCKER HERE.

JUDGE HEKE.

MAYOR SCHROER IS EXCUSED.

JUDGE WHITMAN, WE DO HAVE A QUORUM, BARELY.

QUESTION.

DO WE HAVE A QUORUM? YES, SIR.

, IT'S A HUNDRED DEGREES OUT THERE, SIR.

BARELY.

THANKS FOR BEING HERE.

UH, DO WE HAVE ANY PUBLIC COMMENTS? NO PUBLIC COMMENTS.

THANK YOU.

THEN LET'S GO ON

[4. Monthly Report - Diane Rath A. Staffing Updates B. Program Status and Operational Updates Area Agencies on Aging (AAA) Alamo Regional Transit (ART) External Affairs & Communications Intellectual & Developmental Disability Services (IDDS) Military and Veterans Affairs Natural Resources Public Safety Regional Services Environmental Conservation Weatherization Assistance Program C. Organizational Updates Building Update General Administration Policy Review Chief Financial Officer General Counsel]

THANK YOU, MR. CHAIRMAN.

AND WE HAVE BEEN VERY, VERY BUSY WITH UP AND I HAVE TO REALLY, UM, BRAG ON OUR AGING DEPARTMENT.

AND, UH, WILL MCKNIGHT, UH, HOST YOU RAISED HIS HAND BACK THERE.

DO IT AGAIN IN CASE YOU MISSED SEEING HIM BACK THERE.

WE, UH, HOSTED THE STATE AGING CONFERENCE A COUPLE OF WEEKS AGO ALONG WITH THE SUPPORT FROM TARC AND IT WAS A TREMENDOUS SUCCESS.

WE HAD THE LARGEST ATTENDANCE EVER IN HISTORY, SO WE HAD A, A VERY LARGE ATTENDANCE, VERY ENGAGED FROM AROUND THE STATE.

AND, UM, WE WERE ALSO VERY PLEASED AND VERY HONORED, UH, THAT ONE OF THE TWO AWARDS THEY GIVE OUT EXTRA EVERY YEAR HAS BEEN NAMED AFTER GLORIA VASQUEZ.

UH, AND RECOGNITION OF THE TREMENDOUS IMPACT THAT SHE HAD ON THE AGING NETWORK.

UH, SO SHE WAS THERE AND HER FAMILY WAS THERE, UH, TO REALLY ACKNOWLEDGE THE RECOGNITION.

AND THEN IT REALLY WAS, UH, VERY, UH, A SOURCE OF GREAT PRIDE THAT THAT FIRST GLORIA VASCOS AWARD WAS GIVEN TO ACOG BECAUSE OF OUR PARTNERSHIP WITH DEAF LINK.

SO IT'S A VERY INNOVATIVE PARTNERSHIP.

THEY'VE DONE PHENOMENAL WORK WITH DEAF LINK AND THAT WAS ALSO RECOGNIZED, SO WE'RE VERY, VERY PLEASED WITH THAT.

UM, SO THEY DID, THE WHOLE DEPARTMENT DID A REALLY, REALLY GREAT JOB AND WE HAD SOME WONDERFUL PRESENTATIONS THERE.

UM, ART LEADERSHIP ATTENDED TECH STAT SEMI-ANNUAL MEDIA IN AUSTIN AND THERE WILL BE A COMMUNITY AFFAIRS COMMITTEE MEETING AFTER NEXT WEEK'S BOARD OF DIRECTORS MEETING.

AND THEN WE'LL BE RELEASING THE CALL FOR REGIONAL AWARDS, UH, SHORTLY AFTER THAT.

I D D HAS BEEN VERY BUSY.

THEY OFFERED AN EDUCATIONAL SERIES, UH, AT THE MAC FOR NAVIGATORS, DEALING WITH CHALLENGING BEHAVIORS AND MENTAL WELLNESS AND I D D AND THEY ALSO COORDINATED WORKSHOPS FOR SAN SCHOOL DISTRICT PRINCIPALS, EDUCATORS, AND OTHER ADMINISTRATORS.

UM, I DO WANNA MAKE THE BOARD AWARE THAT WE'RE DOING A VERY SMALL REORGANIZATION IN I D D, UH, DUE TO THEIR FINANCIAL UNDERPERFORMANCE THE PAST COUPLE OF YEARS.

SO WE'RE ELIMINATING A FEW POSITIONS AND INCREASING SOME OF OPERATIONAL CONTROLS THAT WE HAVE IN PLACE.

WE ALSO WILL NOT BE RENEWING A SMALL TEXAS WORKFORCE COMMISSION PERFORMANCE GRANT, UH, WHICH HAS PROVEN VERY DIFFICULT TO IMPLEMENT AND ACHIEVE SUCCESS WITH.

SO THAT IS, UH, IN EFFECT, UH, PART OF IT'S AUGUST 1ST PART OF IT'S SEPTEMBER 1ST.

UH, WE ARE VERY BUSY HO HOSTING MEETINGS AND WE HAVE A LOT OF DIFFERENT MEETINGS GOING ON IN NATURAL RESOURCES.

THEY'RE HAVING AN ELECTRIC SCHOOL BUS LUNCH AND LEARN WITH RYAN ELECTRIC, JULY 25TH, TALKING ABOUT ELECTRIC STUDENT TRANSPORTATION AND THE INCENTIVES THAT ARE AVAILABLE NOW.

THEN THEY'RE GONNA BE HOSTING ON JULY 27TH, UH, AN ENERGY RESILIENCY AND HAZARD MITIGATION PLANNING ROUND TABLE THAT'S REALLY TARGETED FOR EMERGENCY PLANNERS AND MANAGERS.

I WANNA THANK, UH, BEAR MET FOR HOSTING US, CUZ THAT WILL BE OUT OF THE QUARRY RUN OPERATIONS.

IF ANY STAFF ARE INTERESTED, PLEASE LET LA KNOW BECAUSE THEIR NAMES NEED TO BE INCLUDED IN THE FACILITY GUEST LIST.

UH, AND THEY'RE ALSO HOSTING, UH, BUILDING ENERGY CODES ROUND TABLE AUGUST 24TH TO TALK ABOUT THE 2021 BUILDING CODES AND WHY IT'S IMPORTANT TO UPGRADE, UH, CURRENT EXISTING CODES.

UH, AND IT'S INTENDED FOR CITIES WITH CODES OLDER THAN 2015, BUT ANY CITY IS WELCOME.

WE ARE HAVING THE PLANNING AND ZONING WORKSHOP ON AUGUST 4TH IN THE MORNING.

AND ONE THAT MIGHT BE INTERESTED INTERESTING TO MANY OF OUR MUNICIPALITIES IS A WEBINAR WITH TEXAS DOWNTOWN TOMORROW IN THE MORNING

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SO THAT WILL BE, AND THEN TONIGHT WE'RE HOSTING WITH TEXAS BROADBAND, UH, A WORK SESSION HERE FROM FOUR TO SIX.

AND IT HAS BEEN VERY, THE RSVPS ARE REALLY, REALLY STRONG FOR THAT.

I'M VERY PLEASED THAT WE'RE HOSTING IT AND IT'S HERE IN SAN ANTONIO CUZ THE FIRST TIME THEY DID THIS, IT WAS IN VICTORIA.

SO, UH, I THINK THEY'LL BE, GET SIGNIFICANTLY MORE INFORMATION AND INPUT TONIGHT.

UM, UH, ALEJANDRO MARTINEZ AND OUR VETERANS AFFAIRS AND I ATTENDED A D O D CLIMATE RESILIENCE WORKSHOP IN ST.

LOUIS LAST WEEK.

AND I WAS ON TWO PANELS DOING PRESENTATION OF SOME OF THE, UH, ACTIVITIES THAT WE HAVE DONE TO SUPPORT JBSA AND VETERANS.

DIRECTED CARE IS ABOUT 610 VETERANS.

BUT VERY IMPORTANTLY, WE HAVE FOUR CLIENTS IN VALLEY, FOUR IN VAL VERDE AND ONE IN KENNY COUNTY.

AND I HAVE, UH, COORDINATED WITH MY COUNTERPART WHO'S VERY HAPPY WE'RE PROVIDING THAT SERVICE.

UH, SO THAT GRADUAL EXPANSION IS REALLY ALLOWING US TO SUPPORT MORE VETERANS WHO HAVE MUCH MORE LIMITED RESOURCES IN THEIR AREA.

UM, WE, IN WEATHERIZATION, I HAVE TO SAY, WE ARE GOING TO HAVE NEXT MONTH PROBABLY A VERY LARGE, UH, ADDITIONAL GRANT COMING.

WE ARE REALLY SEEKING SINGLE AND MULTI-FAMILY APPLICATIONS FOR THE WEATHERIZATION PROGRAM.

WE ESPECIALLY NEED THEM IN RURAL COUNTIES AND WE NEED ADDITIONAL RURAL PROVIDERS.

SO ANYTHING, ANY SUGGESTIONS ON HOW WE COULD INCREASE OUR APPLICATIONS AND OUR PROVIDERS IN RURAL AREAS, WE WELCOME CLIFF WILL BE VERY GLAD TO TELL YOU IF YOU LOOK AT HIM, HE'LL BE GRINNING THAT OUR, UH, BACKUP GENERATOR INSTALLATION IS COMPLETE.

UH, IT WILL POWER THE 9 1 1 PSAP EQUIPMENT AND WILL GIVE US RELIABLE POWER, UH, TO SUPPORT OUR FOLKS WORKING FROM HOME AND REMOTELY IF WE EVER HAVE A PROLONGED POWER OUTAGE.

AS HE JUST SAID, YOU REMEMBER THIS WAS APPROVED OVER TWO YEARS AGO, SO IT IS NOW INSTALLED, IT'S BEEN CONNECTED AND THEY TELL US IT WORKS.

SO WE'RE PLEASED ABOUT THAT.

UM, WE, YOU MAY RECALL THAT WE HAVE A LOAN FROM SECO FOR ENERGY EFFICIENCY IMPROVEMENTS IN THIS TITAN BUILDING AND WE HAVE A AWARDED THE CONTRACT INSTALLATION OF ONE OF HVAC CHILLERS AND WE ARE ALL CELEBRATING THE HVAC MANAGEMENT SYSTEM AND WE WILL MAYBE NOT BE FREEZING OR BURNING UP IN THIS BUILDING ANYMORE.

SO WE'RE IN THE PROCESS OF FINALIZING THAT AND WE HOPE TO HAVE THOSE PROJECTS COMPLETED BY NEXT SPRING.

OF COURSE, I WILL SARCASTICALLY SAY WE SAY THAT AND FOR THOSE OF US THAT LOOK AT THE ELEVATORS, THAT WAS SUPPOSED TO BE FINISHED BY THE END OF MAY.

WE'RE STILL WAITING, BUT NOW WE'RE UP TO WAITING FOR THE INSPECTIONS MADE PROGRESS, BUT I WOULDN'T BET MONEY ON NEXT SPRING, NO OFFENSE.

SO IF THERE'S NO QUESTIONS, THAT'S MY REPORT, MR. CHAIRMAN.

OKAY.

ANYTHING ON THE BUILDING UPDATE OR JUST LOOKING AT THE BOTTOM DOWN THERE? WHAT DID YOU SAY YOU WERE DOING AT CORY RUN? WE'RE HOSTING A ROUND TABLE, UH, FOR EMER EMERGENCY MANAGERS ABOUT, UH, ENERGY RESILIENCE.

IT IS ON, UM, JULY 25TH AND IT IS, UM, UH, ENERGY RESILIENCE AND HAZARD MITIGATION PLANNING FOR EMERGENCY PLANNERS AND MANAGERS.

GOOD.

THANK YOU VERY MUCH FOR HOSTING IT.

ANY ORGANIZATIONAL UPDATES? NO, WE'RE GOOD.

THANK YOU.

OKAY, MOVE RIGHT ALONG.

[ Consent Agenda ]

UH, CONSIDER AND ACT UPON THE RECOMMENDATION TO APPROVE THE APRIL 19TH, 2023 EXECUTIVE COMMITTEE MEETING.

MINUTES SHALL MOVE.

SECOND, A MOTION.

AND SECOND, UH, ANY DISCUSSION? THOSE IN FAVOR SAY AYE.

AYE.

OPPOSED? CARRIES.

[6. Discussion and appropriate action regarding the recommendation from the Executive Director to approve AACOG's Annual Audit Report for the year ended December 31, 2022 - Julio Elizondo]

JULIO.

MORNING, MR. CHAIRMAN.

CHAIRMAN, UH, I'M PRESENT.

I'M GONNA TURN IT OVER TO MS. MCKAY PATON, WHO WILL CONCLUDE FOR APARTMENT WITH VIS AND SHE'LL BE, UH, RELAYING OUR 2022 AUDIT.

WELCOME.

THANK YOU.

HOPEFULLY I, OH YEAH, THANKS DAN.

HEAR ME? MY NAME'S MATHSON.

I'M AN AUDIT PARTNER AT, FOR I OVERSEE OUR PUBLIC SECTOR PRACTICE FOR SAMANTHA ANTONIO IN OUR AUSTIN OFFICES.

UM, AND SO TO BE HERE TODAY TO SHARE THE AUDIT RESULTS FORWARD DECEMBER 31ST, 2022.

JUST A REMINDER, OUR RESPONSIBILITIES WAS TO FORM AUDIT UNDER US GENERALLY

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SO WE ACTUALLY EXPRESSED THREE OPINIONS FOR AOG.

WE EXPRESS A OPINION OVER THE FINANCIAL STATEMENTS, THEIR TRANSACTIONS, UM, WITHIN THERE.

WE ALSO DON'T EXPRESS A OPINION OVER THE INTERNAL CONTROLS OVER FINANCIAL REPORTING AS IT RELATES TO ALL OF THEIR FEDERAL AND STATE FUNDED PROGRAMS. WE GO THROUGH THOSE EACH YEAR AND SELECT CERTAIN, UM, PROGRAMS, CERTAIN AS MAJOR, AND THOSE ARE THE ONES THAT WE TEST FOR COMPLIANCE.

AND THEN OUR LAST OPINION IS OVER THE COMPLIANCE OF THOSE MAJOR PROGRAMS. SO WITHOUT ANY FURTHER ADO, ALL THREE OPINIONS WERE UNMODIFIED OR WOULD I LIKE TO SAY CLEAN OPINIONS.

SO IT'S THE HIGHEST LEVEL OF ASSURANCE THAT WE CAN PROVIDE AN ORGANIZATION, UM, WITH THOSE.

SO THAT TAKES A LOT OF TIME, EFFORT, UM, CONTROLS IN PLACE, UM, OVERSIGHT TO GET THERE.

AND SO, UM, THAT'S ALWAYS, SO I LIKE TO SHARE THAT UPFRONT SO THAT WAY THE REST OF THIS IS JUST EXTRA BRAILLE MANAGEMENT'S RESPONSIBILITY WITHIN THIS IS TO HELP US HELP PREPARE THOSE FINANCIAL STATEMENTS AND ACCORDANCE WITH GAFE AND FOR THE INTERNAL CONTROL OF THOSE FINANCIAL STATEMENTS.

SO THEY HAVE TO HAVE CERTAIN CONTROLS AND PROCESSES AND POLICIES ALL IN PLACE, UM, TO GET US TO WHERE WE ARE HERE TODAY.

IN ADDITION, MANAGEMENT HAS TO EVALUATE, UH, THE ORGANIZATION AND CONSIDER IF THERE'S ANY KIND OF SUBSTANTIAL DOUBT ABOUT THE ORGANIZATION'S ABILITY TO CONTINUE NEXT YEAR AND FIVE YEARS.

AND SO THEY DO HAVE CERTAIN POLICIES AND STRATEGIES AND CONTINUANCE OF THAT AND THAT THERE'S NO CONCERN THAT THE ORGANIZATION ISN'T GONNA BE CONTINUING.

SO AS MENTIONED BEFORE, THERE WAS UNMODIFIED CLEAN OPINIONS OVER, UM, ALL OF THE FINANCIAL STATEMENTS AND THE FEDERAL AND STATE FUND AUDITS.

THERE WERE NO SCOPE LIMITATIONS.

I DO WANT TO SEND AN APPRECIATION TO JULIO'S HIS TEAM.

THERE WAS, UM, VARIOUS TRANSITIONS WITHIN THE FINANCE AND ACCOUNTING DEPARTMENT THIS YEAR.

AND I WANT TO SAY EVEN WITH THOSE THAT HAVE TRANSITIONED OUT AND THOSE THAT HAVE TAKEN ON A BIGGER ROLE, UM, WE WERE ABLE TO WORK REALLY GOOD AND EFFECTIVELY, UM, TO GET US HERE TODAY.

AND SO I, THAT, THAT DOES TAKE A BIG PUSH ON ON BOTH PARTS OF MY TEAM, THEIR TEAM.

SO I DO WANNA APPRECIATE THAT AND KNOW THAT THERE WASN'T ANY SCOPE LIMITATIONS.

UM, WHAT WE ASKED FOR, THEY WORKED HARD AND DILIGENT THINGS TO PROVIDE.

AND SO THERE'S VERY OPEN AND EFFECTIVE COMMUNICATION MANAGEMENT ON THAT PART.

THERE ARE ALSO NO AUDIT ADJUSTMENTS THAT WERE REPORTED.

SO AS WE GO INTO OUR AUDIT, UM, WE SET A VERY HIGH LEVEL MATERIALITY THRESHOLD AND THEN WE SET A VERY LOW MATERIALITY.

IF ANYTHING WAS OVER THAT HIGH THRESHOLD, WE WOULD CONSIDER THAT MATERIALLY INCORRECT AND COME TO MANAGEMENT AND SAY, I BELIEVE YOU HAVE TO HAVE TO MAKE THESE ON YOUR FINANCIAL STATEMENTS SO YOUR FINANCIAL STATEMENTS WON'T BE MATERIALLY CORRECT.

WE COULDN'T EXPRESS THAT CLAIM CLAIM IF THEY WERE LOWER THAN THE LOWEST THRESHOLD THAT WE HAVE, WHICH IS VERY LOW ANYWHERE IN THAT IN BETWEEN.

WE CAN COME TO MANAGEMENT WHEN WE SAY, DO YOU WANT TO MAKE THESE ADJUSTMENTS? AND THEY COULD DECIDE IF THEY WANTED TO MAKE THEM, IF THEY DECIDED THAT IT WAS MATERIALLY MISLEADING TO THE USERS OF THE FINANCIAL STATEMENTS.

DO YOU ALL THEY COULD PASS ON THOSE OR THEY COULD MAKE THEM.

SO THERE WAS NO AUDIT ADJUSTMENTS THAT, UM, THEY MADE THAT WE, WE IDENTIFIED AND THEY HAD TO MAKE, THERE WAS TWO WA TO AJ.

SO THESE ARE THE PAST ADJUSTMENTS, UM, THAT THEY, UM, EVALUATED AND SAID THEY DON'T MAKE A MATERIALLY DIFFERENCE TO OUR ENTIRE ORGANIZATION.

SO ONE OF THOSE WAS TO REPORT THE LESSOR LEASES.

IT'S A LOT OF LEASE TERMINOLOGY HERE WITH THE LACEY'S INDUSTRY.

SO THIS IS VERY TECHNICAL ACCOUNTING HERE.

UM, I'LL GET INTO IT, BUT IF YOU'VE BEEN ON A FINANCE COMMITTEE OR IN THE ACCOUNTING REAL, Y'ALL HAVE HEARD ABOUT THE LEASE IMPLEMENTATION PROBABLY 15 YEARS AND THAT LEASES WERE GONNA CHANGE, THAT HAPPENED TO THIS ORGANIZATION THIS YEAR.

SO THEIR FINANCIAL STATEMENTS DO LOOK A LITTLE DIFFERENT BECAUSE THEY DID IMPLEMENT THE NEW LEASE STANDARD.

ONE OF THE VERY TECHNICAL THINGS WAS WITHIN THE LESSORS.

THEY, THEY LEASE OUT THE INTEREST RATE USED TO CALCULATE SOMETHING WAS SUPPOSED TO BE IN THE LESSEE THAT YOU USED IT APPLY OR STATE IT RIGHT.

THERE WAS A TINY DIFFERENCE IN A CHANGE.

THEY'D ALREADY REPORTED IT.

THIS CHANGE WAS NOT MATERIAL FINANCIAL STATEMENTS.

I THINK GOING FORWARD WE'RE GONNA CHANGE IT.

AND SO THIS WON'T BE AN ISSUE NEXT YEAR, IT'S JUST THAT WE WERE ALREADY THERE WITH THE AMOUNT OF BODY.

THE SAME THING IS TO REPORT THE AREA DEVELOPMENT CORPORATION, A BLANKET COMPONENT UNIT.

SO AGAIN, VERY GAP, VERY TECHNICAL HERE.

UM, IT IS DISCREETLY PRESENTED INSTEAD OF BLENDED.

AND SO, UM, GOING THROUGH AND UNDERSTANDING THOSE TERMINOLOGIES AND THE, THE ATTRIBUTES THAT ALMO DEVELOP COMPANY IS TO AOG NEXT YEAR, WE WILL, WE WILL SHOW THAT AS A BOARD COMPONENT.

UNIT MANAGEMENT'S

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IT'S A LITTLE BIT MORE INFORMATION TO THE USERS.

SO THE NEXT YEAR IF THEY DECIDE TO ACTUALLY JUST BLEND IT IN, IT WON'T BE STANDALONE WHERE YOU CAN REALLY EXCEED IT.

AND SO THAT'S A DECISION MANAGEMENT WILL HAVE TO MAKE IS MAYBE THEY THINK THAT THIS WAY ACTUALLY PROVIDES MULTIPLE INFORMATION TO THE USERS AND THEY'LL KEEP IT BASED ON THAT.

IT'S NOT MATERIAL TO ACOG OR NOT.

AND SO THOSE ARE JUST THE TWO WAYS THAT ULTIMATELY IN THOSE DISCUSSIONS, IT'S NOT MATERIAL.

THEY ARE ALL FINANCIAL STATEMENTS AND UM, IT'S EITHER ONE MORE USEFUL TO THE USERS OF THE FINANCIAL STATEMENTS THE WAY THAT IT IS OR THAT THEY'LL CONSIDER IT FOR NEXT YEAR.

SO AS WE'RE GOING THROUGH THE FINANCIAL STATEMENTS, AND THESE ARE JUST CERTAIN THINGS FOR YOU ALL TO NOTE AS YOU GET THOSE FINANCIAL STATEMENTS YOU WANTED TO KNOW ANY OF THE SIGNIFICANT ACCOUNT ACCOUNTING POLICIES FOR ACOG, THOSE ARE ALL GONNA BE DISCLOSED IN NOTE ONCE.

SO HOW THEY RECORD OR LOOK AT THE RECEIVABLES AND THEIR ALLOWANCE ON THERE, ANY KIND OF THOSE POLICIES WILL BE A NO ONE.

ONE OF THE NEWER THINGS TO POINT YOUR ATTENTION TO IN THIS YEAR'S FINANCIAL STATE STATEMENTS IS THAT, UM, AS MENTIONED BEFORE, THEY DID IMPLEMENT GA B 87, WHICH IS ALL RELATED TO THE LEASES.

AND SO ULTIMATELY AND A HIGH LEVEL THOUGHT PROCESS THERE IS ANY OF THE LEASES THAT THEY ARE, THEY ARE RENTING OUT, THEY HAVE A CONTRACT SIGNED THAT THOSE OBLIGATIONS USED TO BE IN THE FOOTNOTES OF THE FINANCIAL STATEMENTS DA, WE CHANGED THAT.

IT SAID YOU ACTUALLY NEED TO PUT THOSE ON THE, ON THE STATEMENT NET POSITION BALANCE SHEET AND SAY THESE ARE WHAT YOU'RE OBLIGATED FOR.

IN TURN, JUST LIKE THIS BUILDING, THEY RAN OUT TO THEIR TENANTS.

SO THEY HAVE A SIGNED CONTRACT WITH THEIR TENANTS THAT SAYS THAT THEY'RE ABLE TO RECEIVE AND HAVE MONEY IN THE FUTURE.

AND SO THAT USED TO JUST BE IN A FOOTNOTE AS WELL OF THE FUTURE MINIMUM RENTS THAT AOG WAS GONNA GET.

GAS 87 CHANGED THAT AND SAID, NO, YOU SHOULD REALLY SHOW THOSE ON YOUR COLLEGE SHEET TOO, THAT THOSE ARE YOUR RECEIVABLE, THAT YOU'RE, UM, THAT YOU, THOSE ARE YOUR SCENARIO, YOUR EXISTENCE.

SO YOU SHOULD SHOW THOSE IF YOU'RE GONNA RECEIVE THOSE OVER A LONG TERM PERIOD.

AND SO THAT SUBSTANTIALLY GROSSED UP THEIR BALANCE SHEET, THEIR SAVING THAT POSITION TO SHOW THOSE LEAST RECEIVABLES, THOSE DEFERRED INCOME.

SO NOTHING REALLY IMPACTED NET INCOME BY THE BOTTOM LINE, BUT IT JUST KIND OF GAVE YOU A LITTLE BIT MORE TRANSPARENCY ON WHAT THEIR OVERALL FOR AND ACTUALLY THEIR OVERALL GOING TO RECEIVE AND DUE YEARS.

SO ALL OF THAT TO SAY THAT THOSE POLICIES AND HOW THEY DID THAT IS THE NEW THING IN THE FINANCIAL STATEMENTS.

IT DID TAKE A SUBSTANTIAL, UM, PUSH ON THE ACCOUNTING TEAM TO IMPLEMENT THAT.

AND SO WE GOT OVER THAT HUMP AND NOW WE CAN JUST RECORD THOSE THAT HAVE IT IN THE CURRENT YEAR.

NOW THERE ARE CERTAIN SIGNIFICANT ESTIMATES IN THE FINANCIAL STATEMENTS THAT WE, UH, DESIGN OUR AUDIT PROCEDURES AND OUR RISK RELATED MORE TOWARDS TO MAKE SURE THAT THERE'S NOT MANAGEMENT BIASES OR THAT THE ESTIMATION PROCESSES PUT IN BY MANAGEMENT SEEM REASONABLE.

AND SO TO POINT THOSE OUT, THOSE ARE THE ALLOWANCE FOR COLLECTABLE ACCOUNTS OR GRANTS RECEIVABLE.

SO THEY HAVE THESE RECEIVABLES AND THEY HAVE TO DETERMINE IS THESE REALLY ALL COLLECTABLE? THE, UM, MOST OF THEIR RECEIVABLES ARE FEDERALLY IN STATE FUNDED AND HISTORICALLY IN THE PAST THOSE HAVE ALL BEEN RECEIVED OR COLLECTED.

SO THEIR ALLOWANCE IS REALLY, UM, NOT MATERIAL FOR THEIR OVERSIZED OVERALL ORGANIZATION.

BUT I JUST WANNA POINT THAT OUT.

APPRECIABLE LIVES OF CAPITAL ASSETS THEY GO THROUGH AND MAKE SURE THAT THIS BILLING IS APPRECIATED AT X NUMBER OF YEARS OR BURN EQUIPMENT.

THE GENERATOR NOW CAN BE DEPRECIATED .

UM, INTERNET PENSION LIABILITY IS ALSO AN ESTIMATE THAT HAS VARIOUS INPUTS THAT MANAGEMENT HAS THE REASONABLE OR NOT, THEY OUTSOURCE THAT.

UM, AND GET AN EXPERT'S OPINION ON THOSE ASSUMPTIONS AS WELL.

SIGNIFICANT DISCLOSURES JUST DRAW YOUR ATTENTION TO THAT ARE IN THE FINANC AGAIN, ARE THOSE NET PENSION LIABILITIES, THE ASSETS ONLY BECAUSE THAT IS A SIGNIFICANT ESTIMATE ON THOSE.

UM, AND THEN COMMITMENTS AND CONTINGENCIES THAT'S AROUND THAT.

THEY DO RECEIVE, UM, A LARGE AMOUNT OF FEDERAL AND STATE FUNDING AND AS WE ALL KNOW IS THAT HAS ITS ITS OWN COMPLEXITIES, BUT THAT FUNDING AGREEMENT CAN EITHER GO UP OR DOWN AND YOU GET A YEAR END CONTRACTS.

AND SO THAT, YOU KNOW, IT'S A COMMITMENT OR CONTINGENCY ON WHAT THEY'RE GONNA GET, WHEN THEY'RE GONNA GET IT AND HOW THEY'RE GONNA BE FUNDED.

AS WE GO THROUGH OUR AUDIT, WE GAIN AN UNDERSTANDING OF THE ORGANIZATION'S INTERNAL ROLES THAT I WAS TALKING ABOUT, THEIR PROCESSES AND THEIR CONTROLS AND OUR OVERSIGHT OVER IT.

AND WE PICK OUT CERTAIN KEY CONTROLS TO MAKE SURE THAT THEY ARE OPERATING AND THEY'RE DOING WHAT THEY SAID THEY DO.

IF WE WERE TO PICK OUT CONTROL,

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AND LET'S SAY THAT THAT SIGNATURE WASN'T THERE, WE WOULD ASSESS AND EVALUATE THAT AS EFFICIENCY.

IF IT WAS SIGNIFICANT TO POSITION, WE CALL IT A SIGNIFICANT DEFICIENCY.

AND IF IT WAS MATERIAL TO THE FINANCIAL STATEMENTS THAT WOULD HAVE A MATERIAL EFFECT, A MATERIAL WEAKNESS.

SO AS WE GAINED AN UNDERSTANDING AND TESTING ALL OF THOSE CONTROLS, WE KNOWED THAT THERE WAS NO SIGNIFICANT DEFICIENCY FROM MATERIAL WEAKNESSES.

THAT MEANS THAT THE PROCESSES, THE POLICIES AND THE CONTROLS THAT THE ORGANIZATION HAS IN PLACE ARE WORKING WELL AND THAT THEY'RE DOING, THEY SAY THAT THEY'RE, THEIR POLICIES SAY.

SO THAT'S, UH, REALLY ACCOLADES TO THE TEAM AS WELL.

THERE ARE ANY ONGOING CONCERN MATTERS, FRAUD OR NONCOMPLIANCE WITH LAWS AND REGULATIONS.

I'D BE REQUIRED TO LET THIS COMMITTEE KNOW.

HAPPY TO NOTE THAT THERE WAS NONE NOTED THAT WE WERE AWARE OF.

UM, THERE ARE ALSO NO LARGE OR SIGNIFICANT RELATED PARTY ISSUES, UM, OR THE NATURE OF THOSE RELATED PARTY RELATIONSHIPS, UM, OMITTED IN THE FINANCIAL STATEMENTS.

SO THAT'S ALSO GOOD.

IF THERE WERE ANY DISAGREEMENTS WITH MANAGEMENT OR SIGNIFICANT DIFFICULTIES ANY COUNTER DURING THE AUDIT, THEN I'D BE REQUIRED TO LET THE COMMITTEE KNOW AS WELL.

SO HAPPY TO POINT THAT.

AND LIKE I SAID BEFORE, WE REALLY DO APPRECIATE THE TEAMS. WE KNOW THAT IT IS A, WITH SO MANY FEDERAL AND STATE PROGRAMS, THE COMPLIANCE PIECE IS A BIG PUSH.

WE ASKED FOR A LOT OF THINGS.

I'M SURE THAT BE A WHOLE OTHER CONVERSATION ON HOW WE ASK FOR, UM, TO JUST MAKE SURE THAT IN COMPLIANCE WITH FEDERAL AND STATE REQUIREMENTS THAT THERE ARE ALL COMPLIANCE AND IT'S A BIG PUSH IN A LOT OF THINGS THAT WE ASK FOR.

AND SO THERE DIFFICULTIES, UM, AND KINDA REGARDING ME ON IT, JUST TIME TO GET THERE ALREADY.

DISAGREEMENTS OF MANAGEMENT AS WELL.

AND SO THAT CONCLUDES MY PRESENTATION IN MY REQUIRED COMMUNICATIONS.

I'LL STOP THERE AND IF YOU GUYS HAVE ANY QUESTIONS FOR ME, UH, JUST A COUPLE OF QUESTIONS.

UH, I'M JUST CURIOUS, LOGISTICALLY HOW LONG DOES IT TAKE YOU AND HOW MANY, UH, AUDITORS DO YOU USE? HOW LONG DOES IT TAKE US? SO WE STARTED MID-APRIL THIS YEAR AND WE START THAT LATE A LITTLE BIT BECAUSE OF THE FEDERAL AND STATE, UM, FUNDS THAT THEY RECEIVE, UM, ESPECIALLY IN ALL OF THEIR RURAL VENDORS, THEY USE, IT TAKES SOME TIME TO GET THOSE INVOICES PROCESSED TO MAKE SURE THAT THEIR FINANCIAL STATEMENTS ARE CLOSED AT 1231 AND IN ACCORDANCE WITH THE APP.

SO WE STARTED MID APRIL THIS YEAR AND WE'RE WORKING RIGHT? I MEAN WE'RE WORKING DILIGENTLY RIGHT UP TO THIS MEETING TO GET IT DONE.

WE USED, WE USED AN INTERN, TWO STAFF SENIOR AND A SENIOR MANAGER.

AND THEN THERE ARE TWO, TWO PARTNERS AND A QUALITY CONTROL PARTNER, THE JOB.

AND SO ROUGHLY I'D SAY 300, THE HOURS OVER THE, THE TIMEFRAME OF THAT THAT WAS THERE, I'M SURE IT'S VERY COMPLICATED WITH ALL THE, ALL OF THE VARIOUS, YES.

AND I MEAN DIFFERENT FUNDING SOURCES THAT IF YOU WERE TO BREAK IT DOWN FROM, FROM ACTUALLY THE FINANCIAL STATEMENTS OF LIKE CASH AND RECEIVABLES AS OPPOSED TO THE COMPLIANCE AUDIT.

THE COMPLIANCE AUDIT IS THE BIG PUSH AND UNDERSTANDING ALL OF THE FEDERAL AND STATE REQUIREMENTS THAT, AS YOU ALL KNOW, ARE NOT GETTING LESSENED WITH, WITH RESPECT TO LEASES.

UH, YOU SAY THEY HAVE TO CARRY THE, THE, UH, AMOUNT, UH, IS THAT AN ON AN ANNUAL BASIS OR THE TOTAL LEASE THAT YOU SHOW ON THE BALANCE SHEET? IT'S THE TOTAL LEASE.

SO IF YOU SIGN A FIVE YEAR CONTRACT, UM, AND WANNA PAY A HUNDRED THOUSAND DOLLARS A YEAR NOW WITH THAT STANDARD, IT ESSENTIALLY SAYS THAT THAT'S $500,000 THAT YOU'VE OBLIGATED YOURSELF TO.

SO THAT'S GONNA BE A LEASE OBLIGATION.

IN LIGHT TERMS, LET'S SAY YOU'RE THE LESSOR AND YOU HAVE A TENANT WHO SIGNED A FIVE YEAR LEASE WITH YOU FOR A HUNDRED THOUSAND DOLLARS.

THE THE IDEA THERE IS THAT YOU HAVE A LEASE RECEIVABLE FOR $500,000, THAT $100,000 A YEAR TIMES THE FIVE YEARS, AND YOU PUT THAT ON YOUR BALANCE SHEET AND MORE OR LESS AMORTIZING.

DO YOU FOOTNOTE THE, THE LENGTH OF THE LEASE IN UM, YES RECORDS IN THE FOOTNOTE DISCLOSURES, YOU WILL STILL SEE THE MATURITY SCHEDULE THAT YOU'RE GONNA GET THIS MUCH RECEIVABLE IN 2024, YOU'RE GONNA GET THIS MUCH RECEIVABLE SO IT'S THERE FOR YOU.

OKAY, THANK YOU.

ABSOLUTELY.

SO ALL IN ALL, HAVING SAID THROUGH A LOT OF THESE, UH, YEAR END ADJUSTMENTS ARE VERY IMPORTANT AND UM, THAT'S REALLY WHAT TELLS THE STORY AT THE END OF THE YEAR BASICALLY TO BE SURE THAT ALL OF THOSE ADJUSTMENTS HAVE, HAVE GOTTEN IN THERE AND MADE SURE THAT THEY'RE CORRECT.

YES.

AND WHAT WE DID NOTE THIS YEAR IS THAT ALTHOUGH WE COME TO THIS JULY MEETING AND, AND HOPEFULLY OUR HOPE IS TO GET TO JUNE MEETING, WE HAVE REALIZED THAT STARTING IN APRIL AND ALLOWING ALL OF THOSE VENDORS TO GET THINGS PROCESSED REALLY HELPS IN

[00:25:01]

AND SO THAT'S KIND OF, UM, JUST REALISTICALLY A TIMING EXPECTATION.

THANK YOU.

IF I COULD EXPAND ON THAT JUST A LITTLE BIT CUZ YOU'RE ABSOLUTELY CORRECT.

AND OUR RURAL AREAS PARTICULARLY, WE HAVE SO MANY, AND IT'S ESPECIALLY A PROBLEM IN AGING.

WE HAVE SO MANY MOM AND POPS THAT REALLY AREN'T COMPUTERIZED THAT DO EVERYTHING VERY MANUALLY.

AND SO THEY, SOME OF THEM JUST AREN'T IN A HURRY TO GET PAID.

IT'S AMAZING.

YOU HAVE TO BEG FOR STATEMENTS SOMETIMES.

UH, BUT THAT WAS REALLY A PROBLEM, YOU KNOW, TWO AND THREE YEARS AGO.

SO CHANGING AND BACKING IT UP TO APRIL REALLY GAVE US A CHANCE TO HAVE A, A CLOSE STAYED CLOSED AND, UH, DIDN'T HAVE TO CONTINUE TO DO ADJUSTMENTS.

BUT IT'S PRIMARILY AGINGS THE MOM AND POPS IN THE RURAL AREAS WHERE THE BIGGEST PROBLEM COMES FROM.

AND I'LL ADD THAT AGING IS, UM, CONSIDERED A HIGH RISK PROGRAM FROM A FEDERAL STANDPOINT AND STATE PROGRAM.

SO THAT IS A REQUIRED PROGRAM TO BE AUDITED EVERY YEAR.

SO AS YOU'LL SEE IN THE FINANCIAL STATEMENTS, THE CFA, THERE ARE CERTAIN MAJOR PROGRAMS THAT MAY HAVE GOTTEN SELECTED LAST YEAR THAT DIDN'T THIS YEAR.

AGING IS ONE OF THOSE THAT ALWAYS DOES.

AND SO WAITING ON THOSE VENDORS CHANGES ALSO HOW MUCH WE HAVE TO AUDIT FROM THE COMPLIANCE STANDPOINT.

SO IT'S NOT JUST THAT NUMBER, BUT IT FLOWS THROUGH.

SO IT'S UM, IT JUST ADDS AN ADDITIONAL COMPLEXITY.

OKAY.

SO WE NEED TO APPROVE THIS AND SEND THIS TO THE REGULAR BOARD, IS THAT CORRECT? YES, SIR.

SO I'LL MAKE THE MOTION TO APPROVE THE ACOG, UM, 2022 ANNUAL AUDIT FOR US TO THE REGULAR ACOG BOARD.

UH, I'LL SECOND IT.

GOT A MOTION AND A SECOND? YES.

ANY DISCUSSION? THOSE IN FAVOR SAY AYE.

AYE.

OPPOSED? CARRIES.

THANK YOU.

WE APPRECIATE YOUR JOB.

I APPRECIATE YOUR TIME.

THANK YOU.

WE LIKE TO REPORT .

UH, NEXT ITEM IS

[7. Discussion and appropriate action to approve the 2nd Quarter 2023 financial report. - Julio Elizondo A. Dashboard B. Balance Sheet C. Revenue and Expenditures D. Administrative Budgets E. Quarterly Investment Report]

GOOD MORNING, MR. CHAIRMAN, CHAIRMAN, MEMBERS OF THE EXECUTIVE COMMITTEE.

MY NAME IS JULIO ELIZONDO.

UH, DOES THAT SOUND OKAY? MM-HMM.

.

OKAY, PERFECT.

I'LL BE PRESENTING THE SECOND QUARTER FINANCIAL STATEMENT, UH, UPDATE.

THIS IS VERY BRIEF ONE HERE.

I'M SORRY.

I'M SORRY.

THIS IS A VERY BRIEF ONE.

SHORT ? YES.

OKAY.

VERY WE'LL GO OVER OUR FINANCIAL DASHBOARD THAT WE PRESENT TO YOU EVERY MONTH ON MONTHLY BASIS.

THIS IS, WE WILL COVER BOTH, UH, ALL FINANCIAL STATEMENTS, BOTH THE B SHEET AS WELL AS THE STATEMENTS, GO OVER BOTH THOSE IN DETAIL, DETAIL AND THEN GET THE ADMINISTRATIVE AS WELL.

OKAY.

HER HERE WE HAVE OUR FINANCIAL DASHBOARD.

A LOT OF PRETTY METRICS HERE, PRETTY COLORS FOR YOU TO STARE AT.

UH, AGAIN, IT'S, IT'S FOR THOSE OF YOU ALL WHO HAVE JUST LOOK LOOKING AT RAW DOWN FINANCIAL STATEMENTS, A LITTLE CLEARER PICTURE GIVES SOME, PUT THE PAINT IN A DIFFERENT LIGHT.

SO THE FIRST ONE THAT I'D LIKE, JUST LOOKING STRAIGHT AT ME, , THE FIRST ONE I'D LIKE TO POINT OUT PERCENTAGE EARNED IN SPENCE UP AT THE TOP LEFT QUARTER.

UH, WE'RE MIDYEAR THE YEAR OR MIDWAY THROUGH THE YEAR, SHOULD HAVE MENTIONED, UH, WE'RE ABOUT 51 SUSPENDED ON BUDGETS.

UH, WE DO HAVE SOME PROGRAM THAT ARE OVERPERFORMING.

WE DO HAVE SOME THAT ARE UNDERPERFORMING.

UH, WE DO HAVE A BUDGET MODIFIC MODIFICATION, A PROPOSED BUDGET MOD PRESENTATION RIGHT AFTER THIS TO KIND OF GO OVER THOSE PROGRAMS. THAT WILL BE BUDGET MODIFICATIONS AND I'LL GO OVER THOSE IN A LITTLE MORE DETAIL ON THE ACCOUNTS.

THE OTHER METRICS THAT I LIKE POINT OUT IS THE AGE THE ACCOUNTS ARE RECEIVABLE PULLED DOWN AT THE BOTTOM RIGHT ORDER.

AGAIN, YOU CAN SEE HERE WE'RE SITTING AT ABOUT 9.6 MILLION AT THE END OF JUNE.

IT'S A SLIGHTLY SLIGHT INCREASE WHERE WE'VE BEEN AFTER THE, THROUGH THE, UH, REST OF THE YEAR.

AND I'LL GO OVER THAT A LITTLE MORE DETAIL AS I GET TO THAT IN, UH, IF FEW MORE SLIDES.

OKAY, HERE WE GO.

UH, HERE WE HAVE OUR FI UH, COMBINED BALANCE SHEETS.

OUR TOTAL ASSETS ARE CURRENTLY SITTING AT 45 MILLION AT THE END OF JUNE.

UH, THAT'S, IT'S A LITTLE INCREASE FROM WHERE WE WERE AT A YEAR AGO TODAY OR A YEAR AGO.

YES, AT END OF JUNE.

UH, THAT'S PRIMARILY DUE TO THE SITE INCREASE IN ACCOUNTS RECEIVABLE ON OUR FIXED ASSETS AS WELL.

FUND BALANCE, BOTH UNRESTRICTED AND RESTRICTED.

THIS SUMMARIZES IT BY PROGRAM, UM, GIVES YOU WHERE WE WORK LAST MONTH AT THE END OF MAY, IN ADDITION TO WHERE WE WERE AT THE END OF JUNE LAST YEAR AS WELL.

UM, AGAIN, UH, YOU CAN, YOU CAN SEE WHICH PROGRAMS HAVE KIND OF DONE REALLY WELL.

UH, MBA HAS, HAS, HAS GROWN EXPONENTIALLY WITH THAT.

THEY CONTINUED TO ADD TO FUND BALANCE AND BEEN, HAVE BEEN ABLE TO DO GREAT THINGS IN THAT PROGRAM AND FUND

[00:30:01]

ACTION INVESTMENTS CURRENTLY SITTING AT SIX POINT MILLION AT THE END OF JUNE.

UH, IT'S ABOUT IN LINE WHERE WE'VE BEEN AT, UH, OVER THE PAST YEAR.

UH, WE ARE CONTINUING, CONTINUING TO COLLECT THAT INTEREST IN THE CDS THAT WE CURRENTLY HAVE.

OUR INVESTMENT SUMMARY AT THE END OF JUNE.

THIS IS BROUGHT TO ME BY THE PUBLIC FUNDS INVESTMENT ACT.

WE DO HAVE ALL OUR MONEY MARKET AS WELL AS INVESTMENT, DISPOSABLE TAX PULL, LOW STAR OF THE RATES.

UH, AND THE, THE BIG THING YOU CAN SEE HERE IS AT THE END OF JUNE, LIKE A 55,000 IN INTEREST.

UM, SO FAR, SO GREAT FINANCIAL POSITION TO BE ACCOUNTS RECEIVABLE.

UM, VERY IMPORTANT SLIDE, UH, UP AT THE VERY TOP BASED OPENING AR BALANCE AT THE END OF JUNE WAS VETERANS DIRECTED, UH, GIVE, YOU KNOW, THAT BEING SAID WITH THAT, THAT PROGRAM BEING THE SIZE IT IS, IT'S COMPLETELY UNDERSTANDABLE.

UNDERSTANDABLE THAT THAT'S, UH, MAY 23 HAS BEEN BUILT AND COLLECTED PAST AS OF THE BEGINNING OF JULY.

JULY.

SO ALL WE HAVE OUTSTANDING IS JUNE RIGHT NOW.

AND THEN, UH, IF YOU, IF YOU MOVED DOWN, WE GOT TECH STOP, UM, STOPS OVER 90 WAS MARCH.

MARCH AR THAT HAS BEEN BEEN, I'M HAPPY TO SAY THAT'S BEEN PAID.

IT WAS PAID PAID LAST WEEK AT THE END OF THE LAST WEEK.

UH, SO WE JUST CURRENTLY WE HAVE APRIL, MAY, AND JUNE , UH, THEY DO HAVE HAVE TEXT THAT HAS MIGRATED TO A NEW, UM, PORTAL, I GUESS BILLING PORTAL OF WHAT YOU COULD SAY.

THEY RELEASED IT EARLIER IN THE YEAR, IT DIDN'T WORK AND NOW THEY'VE RERELEASED IT AGAIN.

SO, UM, THESE BUILDINGS WILL BE ABLE AND WE'RE HOPING TO GET THOSE PROCESS AND PAID OUT AS QUICKLY AS POSSIBLE.

BUT WE'RE REALLY HOPING THAT IT WORKS AND WE'RE REALLY HOPING THAT WORKS.

THAT'S THE FIRST STEP.

YEAH, I WAS AFRAID TO ASK.

NO, WE, WE, WE DON'T HAVE GREAT CONFIDENCE THAT IT'S GONNA WORK REAL WELL THE FIRST ROUND OF MONTH.

I THINK THERE'S GONNA BE A LEARNING CURVE FOR EVERYBODY.

RIGHT.

I'LL LEAVE IT AT THAT.

I WON'T.

IT'S A GOOD THING SEAN'S NOT HERE.

HE'D TELL YOU WHAT HE REALLY THINKS OF THEM RIGHT NOW.

THANKS.

VERY GOOD.

OKAY, BEAR AGING.

UH, HSS IS CURRENT, UM, TMH P WITH HHS.

UH, THIS IS VERY MUCH IN LINE WITH WHAT, WHAT IT'S USUALLY, UH, AT THE, UH, THIS IS OUR, OUR MEDICAID REVENUE STREAM WITH I D D.

AND SO AS YOU SEE THOSE, THOSE DENIED CLAIMS CAN ALWAYS BE REBUILD 365 DAYS, FIVE DAYS AFTER THE ORIGINALLY WERE OUT.

UM, CAN I ADD ONE THING TO THIS? AND I'M SORRY TO KEEP INTERRUPTING YOU, I APOLOGIZE.

THAT'S FINE.

THANK YOU.

UM, HHS C WHO THE COMPLEXITY OF HHS C AND THEIR BILLING ISSUES AND BUDGETING ISSUES ARE BEYOND DESCRIPTION.

IN FACT, I'M GONNA TAKE A COLLECTION OF PACKETS WE'VE HAD FOR AGING TO SENATOR MENENDEZ SO HE CAN SEE WHAT AGENCIES ARE LIVING THROUGH.

BUT THEY ALSO, ON THE I D D SIDE OF THE HOUSE, THEY IMPLEMENTED A NEW SOFTWARE PROGRAM ABOUT A YEAR AGO.

UM, AND IT REALLY HAS AN IMPACT ON A CLIENT THAT MOVES BETWEEN REGIONS.

SO IF SOMEONE'S IN BEAR AND GOES OUTSIDE OF BEAR OR IS OUTSIDE OF BEAR AND COMES IN BEAR, THIS WAS SUPPOSED TO AUTOMATICALLY TRANSFER ANY APPROVALS AND ACTIONS THAT HAD BEEN TAKEN.

IT TOOK SEVERAL MONTHS FOR, AND I REALLY HAVE TO SALUTE, UH, JACOB AND HIS TEAM TO IDENTIFY THAT THAT WAS NOT HAPPENING, WHICH IS WHY WE'RE GETTING SO MANY DENIALS CUZ THEY DON'T TELL YOU WHY YOU GET THIS BROAD CATEGORY OF WISE.

AND THEY'RE THE ONES WHO TOLD H H S C IN APRIL THAT THIS WAS HAPPENING.

SO THEORETICALLY, H H S C HAS TOLD US THAT'S BEEN REPAIRED AND THAT'S NOW SUPPOSED TO AUTOMATICALLY HAPPEN, WHICH SHOULD BE HELPFUL ON THE DENIALS.

UH, SO WE ARE NOW GOING BACK AND AS THE REBILLING THAT JULIO MENTIONED, A LOT OF THE REBILLING IS BECAUSE OF THE, MY TERM, THE FLAW IN THEIR, UH, DESIGN OF THEIR NEW SOFTWARE PROGRAM.

SO CORRECT.

ANYTHING I SAID, THAT'S NOT QUITE RIGHT.

NO, THAT THAT WAS, THAT WAS RIGHT.

THAT WAS AROUND.

YES.

SO THANK YOU FOR THAT, FOR THAT.

UM, JUST CONTINUE CONTINUING DOWN THE LIST.

ALAMO AGING, UH, HHS, THEIR CURRENT, YOU KNOW, THAT'S THE NEXT BIG ONE.

AND THEN THE OTHER ONE THAT WE KIND OF HIGHLIGHTED IN PAST MEETINGS IS U UH, YOU KNOW, I'M, I'M HAPPY TO TO SAY THAT WE, WE BILLED, I KNOW THIS IS LAST MONTH, BUT DECEMBER WE ARE FULLY BILLED ALL THE WAY UP THROUGH JUNE.

UH, THE BALL IS REALLY IN VIA COURT.

UH, THEY'RE REVIEWING THROUGH THIS, UM, YOU KNOW, PAYMENTS ARE CUT COMING, THEY'RE TRICKLING IN VERY SLOWLY.

BUT, UH, I I DO FEEL VERY CONFIDENT THAT THIS WOULD BE CLEANED UP, UH, HERE IN THE NEXT COUPLE OF MONTHS.

IT'S JUST, UH, TAKING, TAKING A BIT LONGER THAN I SHOULD THOUGHT.

MR. CHAIRMAN, I WOULD LIKE TO INDICATE THAT AT THE, UH, COUNCILMAN'S DIRECTION WE HAVE REQUESTED A VIA THAT THEY ACCELERATE THEIR PROCESS.

[00:35:01]

THANK YOU.

AWESOME.

THANK YOU SO MUCH.

OUR STATEMENTS, UH, UH, THE BIGGEST, UH, ITEM THAT I WANTED TO HIGHLIGHT HERE WAS OUR REVENUES OVER EXPENDITURES.

CURRENTLY, CURRENTLY 8,000, UH, WHICH IS, UH, A GREAT THING SEEN AS WE'RE WE BUDGETED AT THIS POINT.

AT THIS POINT IN TIME, WE THOUGHT WE WOULD BE AT A DEFICIT OF 170,000.

SO COMBINED REVENUE AND EXPENDITURES, UH, OUR GENERAL FUND AND ADMINISTRATION YEAR REVENUES ARE, ARE 93,000 BELOW BUDGET, BUDGET.

THIS IS TO THE VERY INSTITUTE PACE.

IT'S REALLY TIME ISSUE WILL BE CORRECTED IN THE NEXT FEW MONTHS.

COME ART IS CURRENTLY SITTING AT SITTING AT $480,000 SURPLUS FOR THE YEAR.

UH, PROGRAM DOES INTEND TO USE FOR OPERATIONS BEFORE END THE END OF THIS YEAR.

MILITARY AFFAIRS CURRENTLY SITTING AT 2.3 MILLION ABOVE BUDGET, REVENUE SIDE.

UH, THIS DOES PAY A FACTOR IN THAT SURPLUS THAT THAT'S COLLECTED FOR THE, UH, UH, WHAT WE HAVE, 642,000.

UH, AGAIN, AS I'VE MENTIONED, THIS IS PRIMARILY DUE TO VETERANS DIRECTED.

UM, WITH THAT, THAT INCREASED TIME OF CLIENT CASE CASELOAD AND I WILL BE PRESENTING A BUDGET MODIFICATION TO PROPOSE TO INCREASE THAT BUDGET IN THE NEXT PRESENTATION ID.

THEY'RE CURRENTLY SITTING AT 4 4 60 9,000 DEFICIT FOR THE YEAR.

UM, AS WE MENTIONED EARLIER THIS YEAR, THEY DID PAY OFF THAT SECOND SET OF RETENTION PENSION BONUSES IN JANUARY.

CONDITION.

JACOB AND HIS TEAM HAVE, HAS HAVE DEVELOPED A PLAN, AS DIANE MENTIONED, TO MITIGATE THOSE LOSSES, UM, FOR THE REMAINDER OF THE YEAR.

UH, THEY ARE LOOKING BUDGET MODIFICATION AS WELL TO ALIGN THEIR BUDGET WITH THE CURRENT FORECASTED SPENDING NATURAL RESOURCES 35,000 BELOW BUDGET ON THE REVENUE SIDE, UH, IS PRIMARILY DUE AND GRANTS, UH, WE, WE PROGRAM HAS NOT BEEN ABLE TO FIND OUR SUBRECIPIENTS FOR FOR THAT, FOR THAT GRANT.

AND SO THEY ARE, THEY WILL BE DE-BLING THOSE FUNDS AND WE WILL BE PROPOSE A BUDGET OF MODIFICATION TO ADJUST THAT BUDGET.

AND IF I CAN JUST EXPLAIN THAT JUST A LITTLE BIT MORE, UH, WE HAD, UH, SUBMITTED ON BEHALF OF H E B THE GRANT TO PURCHASE THE ELECTRIC, SOMETHING THEY USE IN THEIR WAREHOUSE AND THEN HEB CHANGED THEIR MIND AND THEY AREN'T INTERESTED IN PURCHASING THAT VEHICLE.

AND SO WE HAVE GONE TO PORT SA, WE'VE GONE TO BROOKS, WE'VE GONE TO SAN ANTONIO MANUFACTURING ASSOCIATION, WE'VE GONE EVERY PLACE WE CAN THINK OF AND NOBODY IS INTERESTED IN PURCHASING THAT ELECTRIC, WHATEVER THEY USE IN THE WAREHOUSE.

AND SO, UH, THAT, THAT'S WHY WE HAVE THE DIFFERENCE THERE AND THAT'S WHY WE'LL BE DE APPLICATING THE FUNDS CUZ THERE'S NOT A SINGLE MANUFACTURER THAT OR WAREHOUSE COMPANY THAT WE CAN FIND THAT'S INTERESTED IN PER PURCHASING THAT IS THAT LIKE A FORKLIFT? IT'S NOT A FORKLIFT BUT IT'S SOMETHING THEY USE.

AND, AND I'M SORRY THAT, UM, LYLE'S NOT HERE RIGHT NOW, BUT IT'S A VEHICLE THEY USE IN THE WAREHOUSE THAT HEB BOUGHT ONE LAST YEAR AND THOUGHT THEY'D BUY ANOTHER AND THEY DIDN'T.

IT'S, IT'S SORT OF LIKE A FORKLIFT.

IS THAT THE TRAILER TUG DIANE THAT THEY, THAT WE FINANCED A COUPLE OF YEARS BACK MIGHT BE A TRAILER.

I JUST KNOW IT'S AN AN ELECTRIC VEHICLE.

IT'S AN ELECTRIC VEHICLE IN THE WAREHOUSE.

IT'S A, TO MOVE THE TRAILERS, THE 18 WHEEL TRAILERS AROUND THE YARD.

OH, INSTEAD OF THE TRACTORS.

IT'S AN ELECTRIC TUG.

SAME CONCEPT AS A TUG THAT PULLS AIRPLANES.

YES.

LITTLE SQUATTING.

THANK YOU.

THANK YOU AGAIN FOR OPPORTUNITY.

AND THEN WHETHER, UH, WE ARE CURRENTLY HUNDRED 76,000 ABOVE BUDGET ON THE EXPEND SIDE.

UH, THIS IS DUE TO DO E THEY WILL NEED A BUDGET MODIFICATION TO CORRECT THAT BUDGET FOR THE MAYOR ON THE ADMINISTRATIVE SIDE.

WE ARE CURRENTLY EIGHT BELOW BUDGET.

UH, THIS IS A GREAT POSITION TO BE IN, UH, BECAUSE WE ALWAYS, UM, IF YOU ARE RECALL ON A YEARLY BASIS, WE UM, USE FIXED CARRY FORWARD METHODOLOGY, UM, FOR OUR DIRECT RATES.

AND SO IF WE, IF WE DON'T EXPAND ALL OF THOSE BUDGET DOLLARS, WE CAN ALWAYS ADJUST IT, UH, IN THE FOLLOWING YEAR.

THAT, THAT CONCLUDES THE PRESENTATION.

IF Y'ALL HAVE ANY QUESTIONS, I'D BE MORE THAN HAPPY TO ASK ANYTHING ELSE JULIO QUESTIONS? NO, LOOKS GOOD.

WE MIGHT TAKE THIS OPPORTUNITY TO UM, MENTION THAT UH, JULIO AND HIS TEAM ARE CURRENTLY REALLY DOING A LOT OF RESEARCH ON OUR INDIRECT METHODOLOGY.

THAT'S CORRECT.

AND THEY ARE GONNA BE DECIDING IN THE NEXT COUPLE OF MONTHS IF WE'RE GONNA CHANGE THE INDIRECT METHODOLOGY THAT WE HAVE TRADITIONALLY USED CUZ AFTER THE FEDERAL GUIDANCE CHANGED IN 19.

SO, UM, I KNOW IT WAS BEFORE THAT ANYHOW CHANGED YEARS AGO, WE DID NOT ADJUST WHAT WE HAD BEEN DOING AND WE'RE THINKING NOW IT MIGHT BE BETTER TO GO AHEAD AND, AND ADJUST OUR CURRENT INDIRECT METHODOLOGY.

CUZ I HAVE TO SAY THE ACCOUNTING TEAM SPENDS SO MANY HOURS EXPLAINING TO OUR FUND, OUR

[00:40:01]

SO THEY ARE CONSIDERING THAT JUST SO Y'ALL AREN'T SURPRISED WHEN THEY BRING A BUDGET IN OCTOBER.

SO WE'LL HAVE ALL THAT INFORMATION.

INFORMATION AND WHEN WE PREPARE OUR, UM, 20, 20, 20 24 BUDGETS, UH, WE'LL BRING THOSE RATES TO YOU ALL AND, AND TELL YOU THE DIFFERENT METHODOLOGY THAT WE HAVE ADJUSTED TO.

BUT THANK, I'M VERY UPSET BECAUSE MY GOAL IS TO GET DOWN TO 10% DE MINIMIS AND IF WE CHANGE THE WAY THEY'RE TALKING TO, IT'S GOING TO GO UP.

YES.

BUT BECAUSE IF WE COULD EVER GET TO 10%, LIFE GETS MUCH EASIER.

MM-HMM.

.

CORRECT.

OKAY.

MOVE APPROVAL OF, UH, THE SECOND QUARTER FINANCIALS, UH, TO THE FULL BOARD.

I'LL SECOND IT.

GOT A MOTION AND A SECOND TO APPROVE THE SECOND QUARTER OF FINANCIALS AS PRESENTED.

ANY DISCUSSION? THOSE IN FAVOR SAY AYE.

AYE.

AYE.

OPPOSED? CARRIES.

THANK YOU.

ITEM

[8. Discussion and appropriate action upon the presentation and recommendation to request Board of Directors approval of the 2023 AACOG Budget Modifications. - Julio Elizondo]

MR. LOZADO.

THANK YOU MR. CHAIRMAN.

UH, OKAY, SO TODAY WE, THIS, THIS ITEM HERE IS THE BUDGET MODIFICATIONS.

UH, SO WE ARE PROPOSING FOR JULY 20, 23, 3.

UH, JOHN TORRES IS NOT IN TODAY.

HE'S ON PTL.

SO HE ASKED ME TO STEP IN AND PRESENTS I'M, TRY, TRY TO DO THIS AS GOOD A JOB AS I THINK HE WOULD'VE DONE WITH THIS .

UM, SO WE'LL GO OVER OUR EIGHT O'CLOCK.

BUT OVERALL BUDGET FOR 2023, UH, WITH THE COUNCIL APPROVED TO BACK IN, UM, DECEMBER.

AND THEN ALSO, UH, COVERED THE PROPOSED BUDGET MODIFICATIONS AND GO TO, UH, DETAIL BY PROGRAM ON THOSE AS WELL.

SO YOU CAN SEE HERE OUR 2023 APPROVED BUDGETS, UH, WAS 70, $79 MILLION, UH, AT, IN TOTAL DIRECT, DIRECT EXPENDITURES AND INDIRECT FOR 2023.

UH, THROUGH THE END, END OF JUNE, THE BOARD HAS APPROVED APPROVED AMENDMENTS TO INCREASE THAT BUDGET OF SIX, APPROXIMATELY SIX THOUSANDS.

OUR CURRENT, UH, ANNUAL BUDGET RIGHT NOW $79.6 MILLION.

WE ARE BORROWED PROPOSED CLOSING 2023 BUDGET MODS, UH, TO INCREASE OUR EXPENDITURES BY 6.5 MILLION.

AGAIN, UH, AS I MENTIONED, I'LL GET INTO DETAIL ON, ON WHY WE'RE PROPOSING THESE, BUT IF YOU CAN SEE THAT THAT OVERALL 2023 BUDGET NOW LIES AT 86.1 MILLION, WHICH, WHICH IS, YOU KNOW, ABOUT $7 MILLION WHERE WE REVIEW WAS GONNA BE LAST YEAR.

HERE WE HAVE A SUMMARIZED VIEW OF OUR AGENCY BUDGETS, UH, BY PROGRAM.

UM, THE OVERALL TOTAL INCREASE TO REVENUES IS EIGHT 8.2 MILLION AND EXPENDITURES IS 6.5 MILLION WITH A OVERALL INCREASED TO FUND DOLLARS IS 1.7 MILLION.

SO MBA WE ARE PROPOSING TO, TO INCREASE THEIR REVENUES BY 9.3 MILLION AND THEIR EXPENDITURES BY 7.5, UH, WITH AN INCREASE TO FUND BALANCE OF 1.8 MILLION.

AGAIN, AS I MENTIONED, WE'VE BEEN MENTIONED ALL YOUR LONG VETERANS DIRECTED AS JUST OVER, YOU KNOW, OVERSHOT AND JUST ROLLING EXPON EXPONENTIALLY.

SO, UH, WE ARE ALIGNING THAT BUDGET WITH THE FORECAST FORECAST TO REMAIN OF THE YEAR.

CAN I INTERRUPT YOU FOR ONE THING THAT WE LEARNED AT THE AGING CONFERENCE? CUZ ONE OF THE BREAKOUT SESSIONS, AND I'M SORRY TO KEEP INTERRUPTING YOU, BUT ONE OF THE BREAKOUT SESSIONS, WE HAD OUR PARTNERS FROM THE VA WHO DID A PRESENTATION ABOUT VETERANS DIRECTED CARE AND WE LEARNED THAT WE HAVE THE LARGEST PROGRAM IN THE COUNTRY AND IT REALLY IS A MODEL FOR THE ENTIRE COUNTRY AND THEY TRY TO HAVE OTHER AREAS EMULATED.

SO I JUST HAVE TO REALLY BRAG ON WHAT VETERANS DIRECTED AND THE MILITARY FOLKS HAVE DONE CUZ IT'S A, IT WAS, UM, I THINK PEOPLE AROUND THE STATE WERE KIND OF BLOWN AWAY BY HOW IT WAS PRESENTED.