* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting. [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.] [00:00:02] UH, GOOD MORNING EVERYONE, AND WELCOME TO THE ALAMO AREA COUNCIL OF GOVERNMENT EXECUTIVE COMMITTEE MEETING WEDNESDAY, APRIL 17TH, 2024 AT 10:00 AM I'D LIKE TO CALL THE MEETING TO ORDER AT THIS TIME. WELCOME JUDGE TILL AND, UH, WE WILL BEGIN THE ROLL CALL. UH, MS. UH SUZIE, PLEASE? YES, MA'AM. MAYOR DENNIS. HERE, JUDGE KELLY. HERE. COMMISSIONER CLAY FLORES. MARK SMITH. COMMISSIONER CLAY FLORES. MAYOR DEON. JOIN JUDGE EVANS HERE. COUNCILWOMAN ROCHA GARCIA GENERAL FOR HER. MR. HAS WALKER. MARY? I DIDN'T, I THINK I THAT GUY. JUDGE HEKE. MAYOR SCHROEDER. JUDGE TEAL. HERE. JUDGE WHITMAN BARELY. SCOTT AIKEN FOR JUDGE WHITMAN. WE HAVE A QUORUM. ALL THANK. THANK YOU MA'AM. THAT WILL TAKE US TO ITEM THREE, WHICH ARE PUBLIC COMMENTS. ARE THERE ANY PUBLIC COMMENTS AT THIS TIME? NO PUBLIC COMMENTS. NO PUBLIC COMMENTS AT THIS TIME? THANK YOU MA'AM. AND THAT WILL TAKE US THEN TO [ Consent Agenda] CONSENT. AGENDA ITEM FOUR. IS THERE A MOTION PLEASE? I WASN'T HERE. DO YOU HAVE TO HAVE A MOTION TO ACCEPT THE CONSENT? IS THERE A MOTION? I MOVE. I MOVE APPROVAL. OKAY. WHO MADE THE MOTION? JEAN. MR. RODRIGUEZ. OKAY. JEAN RODRIGUEZ. AND NO SECOND. I'LL SECOND IT. ALL RIGHT, JUDGE TILL. THANK YOU. WE'VE GOT A MOTION. SECOND TO ACCEPT THE CONSENT AGENDA WILL BE A ALL IN FAVOR, SAY AYE. AYE. ANY OPPOSED? NONE OPPOSED. THE MOTION CARRIES. THANK YOU. ITEM FIVE. [5. Discussion and appropriate action on the recommendation regarding the 1st Quarter 2024 financial report. - Julio Elizondo A. Dashboard B. Balance Sheet C. Revenue and Expenditures D. Administrative Budgets E. Quarterly Investment Report] UM, DISCUSSION AND APPROPRIATE ACTION ON THE RECOMMENDATION REGARDING THE FIRST QUARTER 2024 FINANCIAL REPORT. JULIO ELIZONDO. GOOD MORNING, SIR. GOOD MORNING, MADAM CHAIR. MORNING MEMBERS OF THE BOARD. MORNING. MORNING. THERE WE GO. CAN YOU HEAR ME NOW? YES, SIR. GOOD MORNING. I'M YOUR CHIEF FINANCIAL OFFICER TO THE UPDATE ON THE FIRST QUARTER FINDING FINANCIAL STATEMENTS. BRIEF OVERVIEW OF WHAT WE RECOVERY TODAY. WE WILL GO OVER THE FINANCE FINANCIAL DASHBOARD, WHICH AT THE REQUEST OF MAYOR DENNIS, WE DID ADD A COUPLE NEW METRICS IN THERE. UH, AND I'LL GO OVER THOSE. THE NEXT SLIDE ALSO, ALSO COVER OUR FINANCIAL STATEMENTS, THE BALANCE SHEET AND STATEMENT OF REVENUES AND EXPENDITURES AND EVERYTHING IN BETWEEN CASH AND INVESTMENTS, AR AS WELL AS OUR ADMINISTRATIVE BUDGETS, AS I JUST MENTIONED HERE IS OUR FINANCIAL DASHBOARD TO, IN THE FIRST QUARTER. AS YOU CAN SEE, WE DID ADD A COUPLE PIE GRAPHS DOWN AT THE BOTTOM RIGHT CORNER. UM, THEY'RE JUST A DIFFERENT VARIATION OF THE WATERFALL METRIC AS YOU CAN SEE RIGHT ABOVE THAT. UH, ONE OF THEM IS MONTH TO DATE, SHOWS THEIR EXPENDITURE, VARIANCE BY PROGRAM ON THE MONTH TO DATE. AND THEN THE OTHER IS THE YEAR TO DATE. SO THOSE NUMBERS ON THE YEAR TO DATE SHOULD MATCH THAT WATERFALL RIGHT ABOVE THAT. AND WE'RE STILL PLAYING WITH THIS. SO IN THE COMING, IN THE NEXT COMING MONTHS, WE MAY, YOU MAY SEE THIS, UH, IN A DIFFERENT, UH, VIEW AS WELL. UH, THE PERCENTAGE EARNED AND SPENT IS ONE OTHER METRIC THAT I DO LIKE TO HIGHLIGHT. AS YOU CAN SEE, AT THE END OF THE FIRST QUARTER, WE WERE AT 24% SPENT, WHICH IS PRETTY ON TARGET WHEN YOU THINK ABOUT, YOU KNOW, QUARTERS, IT'S 25%. SO OUR AGED ACCOUNTS RECEIVABLE IS TINKERING RIGHT AROUND 10.6 MILLION, WHICH IS ALIGNING WITH WHERE WE'VE BEEN IN THE PAST. AND THEN DOWN RIGHT BELOW THAT YOU CAN SEE ARE, ARE OVER 90, IS AT ABOUT 8%, WHICH, UM, IS A GREAT POSITION TO BE IN, UH, BEING AS WE WERE IN THE NEAR 20% MARK LAST YEAR. SO OUR COMBINED BALANCE SHEET, AS YOU CAN SEE, TOTAL ASSETS AT THE END OF MARCH ARE $48.2 MILLION. THAT IS AN INCREASE FROM THE MARCH 23, UH, UM, FINANCIALS. UH, A FEW MILLION THERE, BUT THE MAJORITY OF THAT IS IN IN AR AND I DO HAVE A FEW REASONS FOR THOSE AND I'LL COVER IN THE NEXT FEW IN THE IN AR SLIDE. AND THEN AT THE END OF MARCH, WE DID HAVE A NET REVENUE OVER EXPENDITURE OF 552,000. HERE WE HAVE A SUMMARY OF OUR FUND BALANCE, UH, BOTH UNRESTRICTED AND RESTRICTED BY PROGRAMS. YOU CAN SEE WE ARE AT ABOUT $10 MILLION AT THE END OF MARCH COMPARED TO WHERE WE WERE ABOUT 7.3 A YEAR AGO. THE MAJORITY OF THAT IS, UM, MAJORITY OF THAT IS BECAUSE OF THE MILITARY AND VETERANS AFFAIRS PROGRAM, SPECIFICALLY THE VETERANS DIRECTED. SO, UH, WE LOOK FORWARD TO, UM, UM, PUTTING THOSE FUNDS BACK INTO THE COMMUNITY AND, AND ADDING THEM BACK TO SERVICES IN THE NEAR FUTURE. CASH AND INVESTMENTS, VERY IMPORTANT SLIDE. YOU CAN SEE WE'RE SITTING AT $7.7 MILLION, UH, SLIGHTLY ABOVE WHERE WE WERE A YEAR AGO AND, AND A, UH, AN IMPROVEMENT FOR WHERE WE WERE A MONTH AGO. AND UH, YOU CAN SEE HERE THE SUMMARY OF THAT, UH, BROUGHT TO YOU BY THE PUBLIC FUNDS INVESTMENT ACT. WE DO LIST OUT OUR MONEY MARKET [00:05:01] AND OUR INVESTMENT POOLS. UH, AND THEN WE DO DO HAVE OUR CDS LISTED DOWN BELOW. UH, WE DID OPEN A NEW CD AT THE END OF IN MARCH, UH, WHICH CHURCH, BANK AND TRUST, THEY DID GIVE US A GREAT RATE OF 5%. UM, BUT THEN THE MAJORITY OF OUR FUNDS, WE DO LIVE LEAVE IN THE INVESTMENT POOLS, WHICH YOU CAN SEE ARE PAYING AT A REALLY HIGH RATE OF ABOUT 4.14, 5.4%. AND YOU CAN SEE THE DIFFERENT, THERE'S A LOT OF ACTIVITY THROUGHOUT EACH WEEK, UM, THAT JOHN DOES, UH, ON A WEEKLY BASIS, UH, JUST TO KIND OF GAIN AS MUCH INTEREST AS WE CAN ON THOSE FUNDS. UM, SO WE DO LEAVE THE MAJORITY OF OUR FUNDS IN OUR INVESTMENT POOLS AND THEN JUST PULL 'EM OUT WHEN WE'RE READY TO, UH, PAY OUR ACCOUNTS PAYABLE. AND YOU CAN SEE THE INTEREST EARNED AT THE END OF THE FIRST QUARTER WAS 86,000 ALREADY. SO THAT'S A GREAT, UM, GREAT POSITION TO BE IN. ACCOUNTS RECEIVABLE, AS I MENTIONED EARLIER, WE ARE SITTING AT $10.6 MILLION. THE BIGGEST OPEN AR THAT WE HAVE IS, UH, VA AND TDOT. THEY'RE BOTH CURRENT. UH, BUT WE DID HAVE A LITTLE HOOKUP WITH THEIR VA EARLIER THIS MONTH, UM, ACTUALLY BACK IN MARCH, UH, WITH THEIR SOFTWARE PORTAL. UH, HAPPY TO ANNOUNCE THAT THAT HAS BEEN RESOLVED SINCE THEN. WE HAVE BEEN PAID SO THAT THAT $4.6 MILLION HAS BEEN PAID AS OF LAST WEEK ALREADY. AND THE SAME THING WITH T DOT, WE DID HAVE THE MAJORITY OF THAT WAS THE CAPITAL PURCHASE FOR THE, THE BUSES. UM, AND WE HAVE RECEIVED THAT PAYMENT THIS PAST WEEK. SO OUR AR IS LOOKING REALLY GOOD. STATEMENT OF REVENUES AND EXPENDITURES AGAIN, UH, 552,000 NET REVENUE OVER EXPENDITURES AT THE END OF THE FIRST QUARTER. AND I WILL GO INTO A LITTLE MORE DETAIL ON THE PROGRAM SITE HERE. SO YOU CAN SEE BEAR AGING. WE ARE SITTING AT THE END OF THE FIRST QUARTER, 250,000 BELOW BUDGET DUE TO SEVERAL GRANTS. UH, THIS IS A TIMING ISSUE WILL CORRECT ITSELF OVER THE NEXT QUARTER OR SO. UM, AND IT IS LARGELY DUE TO THE RESTRUCTURE OF THE ORGANIZATION THAT WE HAD EARLIER THIS YEAR. SO THE, THE MAJORITY OF THOSE FUNDS WILL BE SPENT IN OTHER SERVICES. ART, WE ARE OVER BUDGET, 436,000. AND AGAIN, AS I'VE MENTIONED OVER THE PAST FEW, SEVERAL MONTHS, THIS IS BECAUSE OF THE BUSES THAT WERE PURCHASED WITH THAT CAPITAL, UH, GRANT THAT WE RECEIVED FROM TXDOT. THESE BUSES WERE IN THE FY 23 BUDGET AND WILL NEED A BUDGET MODIFICATION TO INCREASE OUR FY 24 BUDGET. EXCUSE ME. YES SIR. MODIFICATION IS DONE WHEN? IN, IN JULY. WE PRESENT THAT TO YOU ON JULY. OKAY. YOU'LL SEE THE SAME VARI, SAME VARIANCE OVER THE NEXT SEVERAL MONTHS UNTIL THAT IS DONE. AND IDD WE HAVE, UH, A VARIANCE OF 367,000 ON THE EXPENDITURE SIDE. THEY ARE BELOW BUDGET. UH, THEY DID HAVE VACANCIES IN THAT FIRST QUARTER. THEY ARE NOW FULLY ALMOST FULLY STAFFED. UH, BUT AGAIN, TO ADDRESS THAT ISSUE, WE WILL NEED A BUDGET MODIFICATION TO ADD THAT INTO OTHER SERVICE, UH, SERVICES AND LINE ITEMS. AND LAST BUT NOT LEAST, THE OTHER THAT I DO WANNA HIGHLIGHT IS REGIONAL SERVICES. THEY'RE CURRENTLY AT 11,000 BELOW BUDGET. I KNOW THIS IS A SMALL AMOUNT, BUT THE PERCENTAGE, SORRY, THE PERCENTAGE IS ABOUT 32%. UH, AND AGAIN, THIS IS A TIMING ISSUE AND WILL CORRECT ITSELF OUT OVER THE NEXT QUARTER. ON THE ADMINISTRATIVE SIDE OF THINGS, WE ARE CURRENTLY AT 7%, LARGELY BECAUSE OF THE IT BUDGET. UH, WE WILL HAVE A BIG, UH, PURCHASE OF LAPTOPS THAT IS HAPPENING CURRENTLY. SO THE MAJORITY OF THAT DI THAT VARIANCE WILL BE EATING UP HERE PRETTY SOON. AND THAT CONCLUDES MY PRESENTATION. I'D HAPPY TO ENTERTAIN ANY QUESTIONS THAT YOU MAY HAVE. WELL, THANK YOU SO MUCH FOR THE REPORT. IT'S FUNNY, UH, WHEN YOU SAY WE'RE HAPPY TO GET 5.41% ON OUR INTEREST, I REMEMBER THE DAYS OF, YOU KNOW, 10 AND 12%. SO THAT'S REALLY GOOD. YEP. UM, THANK YOU RAGING OURSELF, IF WE REMEMBER THAT. OH, WELL, I'M DEFINITELY AGING MYSELF, WHICH IS BAD. UH, THE OTHER QUESTION IS, WHAT WILL HAPPEN TO THE, THE OLD WHEN YOU'RE CHANGING OUT THE, THE COMPUTERS OR THE, THAT LAPTOPS? WHAT HAPPENS TO THE OLD ONES? SO WE WELL, THEY GET RECYCLED. THEY GET RECYCLED. OH, OKAY. OKAY. ALL RIGHT. WE, WE EITHER GO THROUGH LIKE COMPUTER SOLUTIONS, OUR VENDOR OR WE HAVE LIKE AND THEN, AND THEY, THEY, UH, RECYCLE 'EM AND WHITE CLEAN ALL OF THE, ALRIGHT. THANK YOU SO MUCH. UH, ANY QUESTIONS OR COMMENTS ON THIS REPORT? YES SIR. MR. KING, I HAVE A QUESTION. UH, I NOTICED IN THE MONEY MARKET YOU HAD A SIGNIFICANT INCREASE FROM LAST ONE THIS MONTH THERE. WHICH, WHERE DOES THAT MONEY COME FROM? CONFUSED, WHICH, UH, I'M SORRY. HOW THE MONEY MARKET. THE MONEY MARKET I BELIEVE AND THE CASH AND INVESTMENTS. ALRIGHT. WHERE, WHERE DID THE FUNDS COME FROM? YEAH, SENSE. WHERE DID THEY COME FROM IN ORDER TO BE ABLE TO DO THAT AS MUCH? SO MAJORITY OF THESE FUNDS ARE THE FUNDS THAT WE RECEIVE FROM OUR ARE, UH, FUNDING AGENCIES. SO THESE FUNDS DON'T BECOME, THEY DON'T SIT, WE HAVE DIFFERENT, UH, FUND BALANCE. UH, IT'S BROKEN UP [00:10:01] INTO DIFFERENT CATEGOR CATEGORIES. SO, SO THESE FUNDS BECOME RESTRICTED, AREN'T PUT BACK INTO THE GRANT THAT TAX AND DOLLARS. AND IS, THAT'S A USUAL PATTERN, IN OTHER WORDS. YES, SIR. SO YOU GET, AND, AND SOME OF THESE PROGRAMS DO REQUIRE THAT YOU SPEND THOSE FUNDS WITHIN THAT SAME GRANT YEAR AND THEN OTHERS, UM, IT DEPENDS, DEPENDS ON THE WAY THE CONTRACT IS AWARDED. OTHERS, UH, THAT INTEREST EARNED CAN GO TO A RESTRICTED. IT ALL DEPENDS ON THE FRONT SOURCE. THANK YOU. MM-HMM, . ALRIGHT. THANK YOU AGAIN. ANYTHING ELSE? ALL RIGHT, WELL THANK YOU FOR THE REPORT AND KEEP UP THE GOOD WORK. THANK YOU. THANKS FOR THE DRAFT. OF COURSE. ITEM SIX, DISCUSSION MOTION. OH, AND A MOTION, OH, PARDON ME AS THERE A MOTION TO ACCEPT THE, UH, FIRST QUARTER, UH, FINANCIAL REPORT. JUST PRESENTED. MOTION TO APPROVE THE MOTION. I'LL SECOND. SECOND BY JUDGE TILL? YES MA'AM. CONSIDER AGENDA AND FORWARD TO THE BOARD. AND FOR, AND, AND PART OF THE MOTION IS TO FORWARD TO THE BOARD IF THAT'S ACCEPTABLE TO THE MAKER OF THE MOTION. YES. AND THE SECONDER. WELL, IN THAT CASE OF ALL, WE TAKE THE VOTE. ALL IN FAVOR? AYE. AYE. ANY OPPOSED? NONE OPPOSED A MOTION. CARRIE, THANK YOU AGAIN. MOVING TO ITEM SIX, DISCUSSION, [6. Discussion and appropriate action on the recommendation to approve the Internal Audit update on completed 2024 activities and projects. – Jaye Wells] APPROPRIATE ACTION ON THE RECOMMENDATION TO APPROVE THE INTERNAL AUDIT UPDATE ON COMPLETED 2024 ACTIVITIES AND PROJECTS. UH, MR. JAY, WELL, . GOOD MORNING, SIR. GOOD MORNING, MADAM CHAIR AND MEMBER EXECUTIVE COMMITTEE. MY NAME IS JAY WELLS AND I AM YOUR INTERNAL AUDITOR. THE INTERNAL AUDIT FUNCTION PROVIDES ASSURANCE TO ACOG BY REVIEWING ITS OPERATIONAL ACTIVITIES AND INTERNAL CONTROLS TO ENSURE THAT WE ARE IN COMPLIANCE WITH REGULATIONS. AND I'M HERE TO PROVIDE YOU AN OVERVIEW OF THE STATUS OF THE PROGRAM. SO FAR THIS YEAR SINCE I LAST PRESENTED TO YOU, I'VE COMPLETED AN AUDIT OVER THE INTELLECTUAL AND DEVELOPMENTAL DISABILITY SERVICES IDDS PROGRAM. AND I'M IN THE PROCESS OF FINALIZING A REPORT OVER THE ALAMO AREA REGIONAL LAW ENFORCEMENT ACADEMY. I'VE ALSO STARTED TWO OF THE PLANNED AUDITS FOR 2024 WITH FIVE MORE PLANNED FOR THE REMAINDER OF THE YEAR. AND I DON'T ANTICIPATE ANY DELAYS IN THEIR COMPLETION. IN ADDITION TO THE AUDITS AND REVIEWS I'VE WORKED ON, I'VE HELPED TO THE AGENCY REVISE REPORTING FOR GASB 87 PRONOUNCEMENT, WHICH TO REMIND YOU IS THE FINANCIAL REPORTING OF LEASES, WHICH WAS REQUIRED STARTING IN 2022. I'VE ALSO HELPED TO PREPARE THE REPORTING FOR GASB 96 PRONOUNCEMENT, WHICH IS THE FINANCIAL REPORTING OF SUBSCRIPTIONS THAT THE AGENCY HAS, WHICH IS NEWLY REQUIRED IN 2023. IN ADDITION, I HAVE ATTENDED FRAUD EXAMINATION TRAINING AND PROVIDED FRAUD TRAINING TO STAFF AND AM WORKING ON PREPARING FOR UPCOMING, UPCOMING SCHEDULED TRAININGS TO ENSURE THAT I'M UP TO DATE ON INDUSTRY STANDARDS AND TO ENSURE THAT THE AGENCY IS PROGRESSING THROUGH THE COMMITTEE OF SPONSORING ORGANIZATIONS OR CSOS INTERNAL CONTROL PROGRAM. I DISCOVERED NO ISSUES DEEMED SIGNIFICANT ENOUGH TO WARRANT BEING A FINDING OR OBSERVATION DURING MY AUDIT OF THE INTELLECTUAL AND DEVELOPMENTAL DISABILITY SERVICES PROGRAM. AND THE FULL REPORT IS ATTACHED IN YOUR PACKETS FOR YOUR REVIEW. I DID, HOWEVER, HAVE TWO RECOMMENDATIONS. THE FIRST RECOMMENDATION WAS THAT THE PROGRAM AND ACCOUNTING PERSONNEL UTILIZE THE PROPER ACCOUNTING CODE WHEN POSTING AND EXPENDITURE. THE SECOND RECOMMENDATION WAS THAT WHILE THE AGENCY IS IN COMPLIANCE, THE IDDS PROGRAM SHOULD REVIEW AND UPDATE THE SERVICE AUTHORIZATION PROCESS TO SEND WRITTEN DOCUMENTATION LETTER AT THE SAME TIME AS VERBAL AUTHORIZATIONS TO BE IN LINE WITH BEST, BEST PRACTICES AND ELIMINATE THE APPEARANCE OF NON-COMPLIANCE. IN SUMMARY, I'VE NOT NOTED ANY SIGNIFICANT ACCOUNTING OR PROGRAMMATIC ISSUES AND I'M NOT AWARE OF ANY INFORMATION THAT NEEDS TO BE DISCLOSED AT THIS TIME. DO YOU HAVE ANY QUESTIONS FOR ME? WELL, THANK YOU FOR YOUR REPORT. I, I DO, UH, WITH YOUR REC YOUR TWO RECOMMENDATIONS HERE, THOSE HAVE BEEN PASSED TO, I'D EXPOSE THE EXECUTIVE DIRECTOR AND TO THE DEPARTMENT HEAD. CORRECT. WHAT I WOULD LIKE TO SEE, UH, IS WHEN THESE RECOMMENDATIONS ARE OR HAVE WILL TAKE PLACE, YOU KNOW, HOW WHEN THEY'RE GOING TO GO INTO EFFECT AND THEN A, A FOLLOW UP. I GUESS MY QUESTION BASICALLY IS I'D LIKE TO SEE, TO SEE A FOLLOW UP MAYBE IN OUR NEXT EXECUTIVE SESSION THAT THESE RECOMMENDATIONS HAVE GONE INTO PLACE AND THAT THEY ARE HAVE BEEN IMPLEMENTED. [00:15:02] OKAY. ALL RIGHT. THANK YOU. UH, ANY QUESTIONS OR DISCUSSIONS, LADIES AND GENTLEMEN? SEEING THAT THERE ARE NONE, UH, IS THERE A MOTION TO ACCEPT THIS REPORT? OKAY, WE'VE GOT A MOTION BY JUDGE EVANS. I'LL SECOND IT AND GOT A SECOND BY JUDGE HEKE HICKEY HICKEY. AND, UH, WE WOULD TAKE THE VOTE OPPOSED OF THOSE IN FAVOR? AYE. AYE. ANY OPPOSED? THE MOTION CARRIES. THANK YOU VERY MUCH. THANK YOU SO MUCH MR. ROSS. THANK YOU. AND OUR NEXT ITEM WILL BE OUR EXECUTIVE SESSION. THE EXECUTIVE COMMITTEE. OH, NUMBER SEVEN. NUMBER SEVEN. OH, I, I, I'M SORRY, I'M GOING SO FAST. I LIKE MARKED IT OUT BUT YOU ALL HELP ME 'CAUSE I WILL GO ZOOM, ZOOM, ZOOM. ITEM SEVEN. [7. Discussion and appropriate action on the recommendation to approve the Quality Assurance update. - Bryn Herrera] DISCUSSION, APPROPRIATE ACTION ON THE RECOMMENDATION TO APPROVE THE QUARTER, THE QUALITY ASSURANCE UPDATE. MR. BRIAN HERRERA. THANK YOU SIR. ALRIGHT, THANK YOU MADAM CHAIRWOMAN, MEMBERS OF THE EXECUTIVE COMMITTEE. UH, MY NAME IS BRENT HERRERA. I'M YOUR INFORMATION AND PRIVACY OFFICER HERE, UH, TO FOLLOW UP WITH JAY TO GIVE YOU AN UPDATE ON OUR INTERNAL REVIEWS AND INITIATIVES THAT WE'VE COMPLETED SO FAR OR ARE WORKING ON IN 2024. SO AS A BRIEF REMINDER, THE INTENT OF ACOG QA IS TO MAKE SURE, UH, OR ENSURE ACOG PROGRAMS MEET AND EXCEED CLIENT STANDARDS. ASSIST IN PREPARING FOR EXTERNAL MONITORS AND AUDITS, IDENTIFYING WEAKNESSES AND PROGRAM PROCESSES, AND OFFERING RECOMMENDATIONS WITH THE GOAL OF CONTINUOUS QUALITY IMPROVEMENT. MY ROLE AS INFORMATION AND PRIVACY OFFICER IS TO REVIEW THE PHYSICAL, TECHNICAL AND ADMINISTRATIVE SAFEGUARDS WHICH PREVENT THE UNAUTHORIZED DISCLOSURE OF SENSITIVE INFORMATION, BOTH PHYSICAL AND DIGITAL. AND ADDITIONALLY TO COORDINATE AND IMPLEMENT IT PROJECTS AND SERVICES WITH OUR CONTRACTED VENDOR. I ALSO AM TO PROMOTE COMPLIANCE WITH PRIVACY AND CYBERSECURITY LAWS VIA THE IMPLEMENTATION OF INDUSTRY STANDARDS AND BEST PRACTICES. INCIDENT INVESTIGATION AND I IDENTIFICATION OF VULNERABILITIES. QA IS GEARING UP TO TACKLE PROGRAM REVIEWS IN ACCORDANCE WITH THE SCHEDULE APPROVED BY THE BOARD LAST YEAR. UH, THE MAJORITY OF WORK SO FAR THIS YEAR REGARDING COMPLIANCE IS REFLECTED IN A NUMBER OF IT AND PRIVACY INITIATIVES, WHICH ARE GONNA BE SUMMARIZED ON THE NEXT SLIDE. UM, REGARDING THE PROGRAM REVIEWS, I DO NOT ANTICIPATE ANY ISSUES IN COMPLETING THE REVIEWS BY THE END OF THE YEAR. AND BASED ON THE MONITORING ACTIVITIES THAT HAVE PERFORMED SO FAR THIS YEAR, I FEEL THAT THERE ARE NO SIGNIFICANT BREACHES OF COMPLIANCE OR CONDUCT WHICH WARRANT REPORTING TO YOU ALL TODAY. THIS SLIDE IS A SUMMARY OF INITIATIVES AND PROJECTS FOR 2024 AND THE INFORMATION AND PRIVACY REALM OVER THE YEARS. MY CYBERSECURITY ROLE HAS DEVELOPED TO BE A BIT BROADER AS A NATURAL EXTENSION OF HIPAA COMPLIANCE. BUT SPECIFICALLY IN, IN THIS REGARD OF A LOT OF WORK THIS YEAR SO FAR HAS BEEN DEDICATED TO BOLSTERING THAT COMPLIANCE, UH, MITIGATING RISK WITH RESPECT TO PRIVACY REGULATION. I'M WORKING WITH PROGRAMS TO ESTABLISH STRATEGIES AND PROCESSES TO MORE EFFECTIVELY MONITOR THE PRIVACY AGREEMENTS WE HAVE WITH SUBRECIPIENTS AND SERVE AS A RESOURCE FOR THOSE EXTERNAL ORGANIZATIONS WHO MIGHT HAVE QUESTIONS OR CONCERNS REGARDING THEIR OWN PRIVACY AND CYBERSECURITY JOURNEYS. ADDITIONALLY, AS THE PROLIFERATION OF AI TECHNOLOGY, AI CONTINUES TO OUTPACE GUARDRAILS AROUND THIS TECHNOLOGY. I'M REVIEWING OUR ACCEPTABLE USE POLICIES AND IF NECESSARY WE'LL PROPOSE, WE'LL PROPOSE REVISIONS SO THAT WE HAVE CLEAR STANDARDS OF HOW, WHEN, AND WHY AI TECHNOLOGIES SHOULD AND SHOULD NOT BE UTILIZED BY STAFF REGARDING DAILY OPERATIONS. THE INFO AND PRIVACY OFFICE CONTINUES TO COORDINATE WITH ACOG'S MANAGED AND IT VENDOR TO PLAN, SCHEDULE AND IMPLEMENT REPLACEMENTS AND UPGRADES TO BOTH HARDWARE AND SOFTWARE THROUGHOUT OUR ENVIRONMENT WITH THE INTENT ON INCREASING EFFICIENCY, SECURITY AND AND VISIBILITY. FINALLY, ONE THING I'M EXCITED ABOUT THIS YEAR IS THE IMPLEMENTATION OF SOME NEW RISK MANAGEMENT SOFTWARE, WHICH WILL SIGNIFICANTLY AUGMENT THE HOLISTIC SECURITY RISK ASSESSMENT I COMPLETE ON AN ANNUAL BASIS. THIS TOOL LEVERAGES A MASSIVE DATA SET OF CYBER LOSS TO QUANTIFY RISK AND PROVIDE TAILORED IDENTIFICATION, MID MITIGATION AND REMEDIATION BASED ON OUR INDUSTRY. MY GOAL WITH THE SOFTWARE IS TO BOTH INCREASE VISIBILITY OF OUR SECURITY GAPS AS WELL AS SUPPORT OBJECTIVE DATA-DRIVEN ANALYSIS REGARDING WHERE AGENCY RESOURCES CAN BE BEST BE UTILIZED, PRIVACY AND SECURITY ARE JOURNEYS RATHER THAN DESTINATIONS. BUT I WANT TO THANK ACOG LEADERSHIP FOR RECOGNIZING ITS VALUE AND IMPORTANCE AND THEIR SUPPORT WITH SUCH INITIATIVES. SO IN SOME RECENT ACTIVITIES CONTINUE TO SUPPORT ENHANCEMENTS TO ACOG COMPLIANCE, PRIVACY, AND SECURITY ENVIRONMENTS. I FEEL THAT WE ARE POSITIONED WELL TO PROACTIVELY RECOGNIZE EMERGING TECHNOLOGIES THREATS AND REGULATORY CHANGES AND TO MAKE STRATEGIC DECISIONS IN THESE AREAS. AS ALWAYS, I CONTINUE TO MAINTAIN AN OPEN DOOR POLICY FOR ALL OF OUR PROGRAMS AND STRIVE TO BE AN INTERNAL RESOURCE SO THAT WE CAN MORE EFFECTIVELY MEET OUR MISSION. IA AND QA CONTINUE TO WORK TOGETHER TO ENSURE COMPREHENSIVE INTERNAL MONITORING AND COMPLIANCE BOLSTERING OVER THE AGENCY'S FISCAL PROGRAMMATIC AND DIGITAL ACTIVITIES. UH, BOTH JAY AND I WOULD [00:20:01] LIKE TO THANK ACOG STAFF FOR THEIR CONTINUED SUPPORT AND FACILITATION OF OUR REVIEWS AND WE ARE HAPPY TO ANSWER ANY QUESTIONS AND RESPECTFULLY REQUEST APPROVAL OF 2024, UM, QA AND AND PRIVACY ACTIVITIES. I THANK YOU FOR YOUR REPORT. UM, ANY QUESTIONS THAT ARE CONCERNS FROM THE BOARD? MAY I MAKE A QUICK COMMENT REAL QUICK? MAYOR? YES SIR, PLEASE. UH, JUST TO BRING TO Y'ALL'S ATTENTION, I HAVE ACTUALLY PUT IN PLACE WHILE BRENT IS CONDUCTING HIS REVIEW OVER A AI POLICY THAT WE NOT USE IT AT ALL. AND I JUST WANTED TO, UM, BRING TO YOUR ATTENTION FOR YOUR OWN, UH, KNOWLEDGE. I ATTENDED A SEMINAR IN IN BOISE AND THE ATTORNEY THAT WAS TALKING ABOUT THE USE OF AI UH, LEFT ME SCARED WHEN I, WHEN I EXITED THE ROOM AND I JUST WANTED TO MAKE, UH, BRING IT TO YOUR ATTENTION. YOU KNOW, IF YOU DON'T USE YOUR PARAMETERS CORRECTLY, THAT THING WILL GO OFF AND DO WHATEVER IT WANTS TO DO. AND OFTENTIMES YOU'RE CREATING A GREAT BROCHURE AND YOU WILL FIND YOURSELF GETTING SUED BY THE PEOPLE WHO HAVE COPYRIGHTS ON THAT INFORMATION. AND SO THAT'S JUST ONE EXAMPLE. UM, I'VE PERSONALLY READ OF ATTORNEYS THAT ARE GETTING THEMSELVES IN TROUBLE BECAUSE IF YOU DON'T LIMIT THE PARAMETERS AGAIN ON HOW YOU WRITE IT OUT, IT WILL CREATE CASE LAW TO BACK UP THE ARGUMENT. SO A LOT OF LAWYERS IN TROUBLE BECAUSE THIS THING WROTE UP THEIR BRIEFS , THAT THAT HAPPENS WITHOUT AI . IT DOES INDEED NOT PLA RIGHT? IT DOES INDEED. I KNOW SOME OF THOSE, BUT THEY, I CANNOT REMEMBER ALL OF THE EXAMPLES OF THIS FELLOW GAVE, BUT IT WAS SCARY ON THE POTENTIAL MISUSE OF THIS AI AND HOW IT CAN GET YOU IN REAL TROUBLE IF YOU DON'T KNOW HOW TO USE IT PROPERLY. AND SO I ENCOURAGE YOU ALL TO, UH, DEVELOP AN AI POLICY AND THAT IS WHAT BRENT IS DOING, BUT I JUST WANT TO LET YOU AWARE OF THAT BECAUSE PEOPLE ARE JUST RUNNING OUT AND HAVING AI WRITE THEIR SPEECHES AND THEY'RE HAVING IT DO ALL OF THEIR PRESENTATIONS AND IT CAN GET YOU IN REAL TROUBLE. SO JUST A WORD OR A WARNING FOR THE, FOR THE CAUTIOUS AND THE WEARY. SO OUR POLICY IS WE DO NOT USE AI. THAT'S THAT'S THE POLICY RIGHT NOW UNTIL WE FIGURE OUT HOW TO GET A HANDLE ON IT. ARE WE NATURAL? TWO? YES. THAT'LL BE PART OF IT. NOW THIS THING IS IMPLEMENTED. EXACTLY. DID YOU HAVE SOMETHING ELSE? THAT'S IT. WELL, I HAVE A ONE, I'LL CROSS THAT ONE OUT 'CAUSE THAT WAS ONE OF MY QUESTIONS. UM, WHAT I WAS WANTING TO ASK YOU THIS QUESTION WHEN YOU WERE TALKING AND YOU WERE SAYING THAT, UM, YOU DIDN'T FIND ANYTHING THAT WARRANTED REPORTING, IS THERE A DOLLAR LEVEL AT WHICH YOU DO ARE REQUIRED TO REPORT TO THE EXECUTIVE DIRECTOR? NOT NECESSARILY. IN MY, UH, JAY IS IS MORE OVER THE, THE FINANCIAL OR FISCAL MENT, IMPERMISSIBLE, UH, SORT OF BEHAVIOR, CONFLICTS OF INTERESTS, SORT DATA BREACHES. OUR BIGGEST, OUR BIGGEST THING IS DATA BREACHES. OH, OKAY THEN THAT'S, THAT'S A QUESTION I I CAN ASK YOU OFFLINE JAY. AND UM, AND YOU WERE SAYING THAT WE'RE GOING TO GET A, YOU WERE HAPPY ABOUT THE RISK MANAGEMENT SYSTEM THAT YOU'RE GONNA BRING. IS THAT COMPATIBLE WITH WHAT WE CURRENTLY HAVE OR THEY'RE GONNA HAVE TO BE SOME UPDATES THERE? NO MA'AM. IT SHOULD, SHOULD, SHOULD LAYER ON TOP OF TOP OF EVERYTHING AND THEN WE USE THE, UH, IN OUR CURRENT DEPARTMENT. AWESOME. WELL THANK YOU FOR YOUR REPORT AND HELP. THANK YOU FOR HELPING REMIND ME THAT WE NEED TO VOTE ON THIS ITEM. WE USE THAT FOR APPROVAL. UH, IS THERE A MOTION TO ACCEPT THE RECOMMENDATION TO APPROVE THE QUALITY ASSURANCE UPDATE AND PASS IT ON TO THE BOARD? SO MOVE. WE GOT A MOTION JUDGE AND A SECOND BY JUDGE EVANS. UH, ANY QUESTIONS OR DISCUSSION? I IF YOU'RE PREPARED TO VOTE. ALL IN FAVOR? AYE. A AYE. AYE. ANY OPPOSED? THE MOTION CARRIES. THANK YOU VERY MUCH. THANK YOU SO MUCH, SIR. ALL RIGHT. ARE [8. The Executive Committee shall convene into Executive Session to deliberate and receive advice regarding: The six month salary review of the Executive Director pursuant to Texas Government Code Section 551.074.] WE READY FOR ITEM EIGHT? THE EXECUTIVE UH, COMMITTEE SHALL CONVENE INTO EXECUTIVE SESSION TO DELIBERATE AND RECEIVE ADVICE REGARDING THE SIX MONTH SALARY REVIEW OF THE EXECUTIVE DIRECTOR PURSUANT INTO TEXAS GOVERNMENT CODE SECTION 5 5 1 0.074. AND WE'LL GIVE A FEW MINUTES FOR THE ROOM TO CLEAR PLEASE. AT, UM, 10:24 AM WEDNESDAY, APRIL 14TH. PASTOR, PASTOR , IT'S LUNCHTIME. ALRIGHT, IT IS, UH, 1105 WEDNESDAY, APRIL 17TH, UH, 2024 THAT WE ARE COMING BACK INTO OPEN SESSION. AND AT THIS TIME I'D LIKE TO [9. Discussion and appropriate action act upon the items discussed in the Executive Session.] ASK FOR A MOTION TO, UH, RECOMMEND TO THE FULL BOARD AN INCREASE, UH, TO THE SALARY OF OUR EXECUTIVE DIRECTOR CLIFF HERBERG OF 35,000, WHICH WOULD MAKE HIS, UH, SALARY AT $271,141 [00:25:01] AND 32 CENTS. IS THERE A MOTION? SO MOVE. I'LL SECOND IT, BUT A MOTION SECOND. DID YOU GET THAT SUSIE? AND, UM, ANY MORE DISCUSSION? HE STILL HAS TO TAKE CARE OF THE PLANS. . OH, OKAY. AND PLEASE CONTINUE TO, UH, SEE HIM AT THE PLANTS. BUT WITH THAT I'LL DID YOU SAY RECOMMENDED IT TO RECOMMEND IT TO THE FULL BOARD? I'M THANK, THANK YOU FOR HELPING ME. I APPRECIATE IT. UH, SO WITH THAT, ALL IN FAVOR WITH AYE. AYE. AYE. AYE. ANY OPPOSED? THE MOTION DOES CARRY. THANK YOU ALL VERY MUCH AND WELCOME. STAY FOR STAYING WITH US. WE APPRECIATE YOUR, YOU VERY MUCH, UH, AND LOOK FORWARD TO YOUR CONTINUED SUCCESS. I APPRECIATE IT. AND JUDGE EVANS, I WAS ACTUALLY OUT LOOKING AT THE PLANTS WHILE OVER HERE, WHILE Y'ALL WERE IN HERE, LAURA AND LAONA. AND THAT WILL TAKE US [10. Items to be placed on the Board of Directors meeting agenda from the Executive Committee.] TO ITEM 10. WHAT'S YOUR ITEMS TO BE PLACED ON THE BOARD OF DIRECTORS MEETING? AND I THINK WE'VE TAKEN CARE OF THAT. AND THEN ITEM 11, ITEMS [11. Items to be placed on the agenda for the next Executive Committee meeting.] TO BE PLACED ON THE AGENDA FOR THE NEXT EXECUTIVE COMMITTEE MEETING. TBD. AND I THINK WE ARE GOOD WITH THAT. AND THEN THE NEXT MEETING? YES SIR. JUDGE, WHEN ARE WE GONNA DO THE EVALUATION FORM? IM GONNA LEAVE THAT APPOINT SOMEBODY, THE CHAIR AND THEN WE REPORT BACK TO HERE. I'M GONNA READ THAT TO THE CHAIR AND THEN HE'LL TELL US, GIVE US CLEAR DIRECTIONS ON THAT. NEXT WEEK WE'LL HAVE THE EVALUATION, THE OLD EVALUATION FORM. YES. AND WE'LL HAVE THE NEXT WEEK I CAN THE NUMBERS ON THE, THE, THE COMPARABLE COGS IN THE STATE. I WILL BRING THAT FORM AS WELL AS NOW IT WON'T BE AN ITEM, IT'LL JUST BE WHAT I WILL BRING TO YOU GUYS TO HAVE IN YOUR POSSESSION. THEN YOU CAN PLACE THAT ITEM ONTO THE NEXT EXECUTIVE COMMITTEE MEETING TO EVALUATE. BUT YOU'LL HAVE IT IN YOUR HAND TO HAVE YOUR COMMENTS OR HOWEVER YOU WANT TO GO ABOUT. BUT I WILL HAVE THAT READY FOR YOU AT MONDAY'S MEETING. WELL, IN CASE LUCINDA WILL HAVE THAT READY TO HEAD OUT. I'M SORRY, AT WEDNESDAY'S. AT WEDNESDAY. I'M SORRY, AT NEXT WEDNESDAY'S MEETING. WE KNEW WHAT YOU MEANT. . OKAY. WE'RE BEING RECORDED. SO YOU KNOW . ALL RIGHT. WELL THAT WILL [12. Next meeting is scheduled for Wednesday, July 17, 2024 at 10:00 a.m. at AACOG.] TAKE US TO ITEM 12, WHICH IS NEXT MEETING IS SCHEDULED FOR WEDNESDAY, OCTOBER 17TH, 2024. THAT'S THE EXECUTIVE MEETING, RIGHT? JULY. JULY 17TH, 2024. YOU BRING A CUPCAKE. IT'S MY BIRTHDAY. AND UH, 10:00 AM HERE AT ACOG. ANY OTHER BUSINESS? UM, EXECUTIVE COMMITTEE STAFF. ALRIGHT, WELL WITH THAT AT 11:08 AM WE WILL CALL THE MEETING ADJOURNED. THANK YOU ALL VERY MUCH FOR YOUR TIME. THANK YOU. THANKS. * This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.