Jul 17, 2024 Executive Committee

TO ITEM FOUR, WHICH IS APPOINTMENT BY THE BOARD OF DIRECTORS CHAIR TO FILL A VACANT POSITION ON THE EXECUTIVE COMMITTEE.

WE HAVE A QUO.

ALRIGHT.

THANK YOU MA'AM.

AT THIS TIME WE'LL MOVE TO ITEM THREE, WHICH ARE PUBLIC COMMENTS.

IF ANY, UH, PUBLIC COMMENTS AT THIS TIME, WE WELCOME THEM.

THERE ARE NO PUBLIC COMMENTS, MADAM CHAIR.

ALL RIGHT.

THANK YOU VERY MUCH, CRYSTAL.

WELL, THAT WILL TAKE US

[4. Appointment by the Board of Directors Chair to fill a vacant position on the Executive Committee. Chairman Rob Kelly]

UM, I'M GONNA TURN THIS OVER TO CHAIRMAN, UH, KELLY.

UH, WE HAVE A VACANCY ON THE EXECUTIVE COMMITTEE WITH, UH, MAYOR DENNIS, HAVING LOST HER ELECTION BY ONE VOTE, WHICH NOT MAYOR DENNIS .

OH, NOT MARRIED.

I'M HAPPY YOU SAY I WAS UNOPPOSED MARY DE SUZANNE DELE.

AND, UH, SO WE HAVE A VACANCY ON THE BOARD, ON, ON THE EXECUTIVE COMMITTEE.

AND THE BYLAWS SAY THAT IT'S TO BE FILLED BY THE CHAIR.

UH, I HAVE ULTERIOR MOTIVES FOR A 0.1 TO APPOINT LISA LEWIS TO THE EXECUTIVE COMMITTEE, AND YOU'LL LEARN ABOUT WHAT THAT ULTERIOR MOTIVE IS FROM MAYOR DENNIS IN JUST A MINUTE, AND I APOLOGIZE AGAIN, .

NO WORRIES, SIR.

I'M HAPPY TO SAY IT WASN'T MENTAL LAPSED, BUT, UH, SHE BRINGS A, A WHOLE SET OF SKILLS, ESPECIALLY IN THE HR AREA, WHICH IS ONE OF THE THINGS THAT WE NEED A LITTLE ASSISTANCE WITH.

THAT'S JUST AN ANNOUNCEMENT OF THE APPOINTMENT.

ALRIGHT.

THANK, THANK, THANK YOU JUDGE KELLY.

WHICH IS APPOINTMENT OF TWO EXECUTIVE COMMITTEE MEMBERS TO MEET QUARTERLY WITH THE HUMAN RESOURCES, UH, DEPARTMENT AS PER THE APPROVED JUNE 26TH, 2024 AMENDMENT TO THE ACOG BYLAWS.

SO, CONGRATULATIONS, AND THANK YOU SO MUCH FOR YOUR WILLINGNESS TO SERVE ON THE EXECUTIVE COMMITTEE, LISA.

WE'RE CERTAINLY LOOKING FORWARD TO YOUR LEADERSHIP, UH, ON THAT COMMITTEE.

AND THAT WILL TAKE US IN TO ITEM FIVE,

[5. Appointment of two Executive Committee members to meet quarterly with the Human Resources (HR) Department as per the approved June 26, 2024 amendment to the AACOG Bylaws. – Vice Chair Mary Dennis]

AND I AM GOING TO ASK, UM, CLIFF, IF HE WILL JUST EXPLAIN A LITTLE BIT ABOUT THIS PROCESS BEFORE I MAKE MY ANNOUNCEMENT.

CERTAINLY, AS ALL Y'ALL WILL RECALL, UM, IN AN EFFORT TO, I WOULD SAY, DELVE INTO MORALE AND DISCIPLINE ISSUES WITHIN THE AGENCY, THE BOARD, UH, APPROVE THE BYLAWS THAT CREATES THESE TWO POSITIONS SO THAT THERE IS MORE TRANSPARENCY AND MORE DIRECT COMMUNICATION WITH THE BOARD, UH, TO THE AGENCY AND ITS STAFF.

AND SO THESE TWO POSITIONS ARE CREATED TO, AND I CALL THEM LIAISON POSITIONS, UH, TO COMMUNICATE, UH, UH, WITH THE BOARD ABOUT ANY ISSUES OF MORALE AND DISCIPLINE AS WE WERE DISCUSSING.

UH, MAYOR DENNIS AND JUDGE KELLY AND I WERE DISCUSSING EARLIER THIS MORNING, OF COURSE IT WILL BE UP TO THE COMMITTEE, THE EXECUTIVE COMMITTEE, TO DECIDE HOW FAR YOU WANT TO DELVE INTO THESE THINGS.

BUT I VIEW THE POSITIONS AS ONE THAT ARE, ARE LOOKING FOR ANY ISSUES THAT ARE WHAT I WOULD CALL SYSTEMIC OR AGENCY-WIDE, AS OPPOSED TO THE TYPICAL ROUTINE, UH, HR COMPLAINTS.

AND SO, UH, THE JOB HAS AS MUCH INVOLVEMENT OR AS LITTLE INVOLVEMENT AS YOU WANT IT TO HAVE.

AND THAT WILL BE SOMETHING FOR THE COMMITTEE TO FLESH OUT ON ITSELF, GIVE ITS DIRECTION TO THE TWO MEMBERS.

ALL RIGHT, THANK YOU.

JOHNSON, UH, I LEARNED THAT, UH, SOME OF THE PROBLEMS SHE KNEW ABOUT SOME OF THE PROBLEM, EVEN SHE DIDN'T KNOW ABOUT IT.

AND I'D LIKE TO SHARE, PLEASE, UH, THIS IDEA.

I, I'M NOT GONNA SAY IT WAS MY IDEA, IT WAS A, A COLLECTIVE IDEA, BUT, UH, IT WAS ABOUT A, A LITTLE OVER A YEAR AGO THAT JUDGE TEAL APPROACHED ME AFTER ONE OF THESE MEETINGS AND TOLD ME WE HAD A PROBLEM.

HE'S, HE, HE REMEMBERS, UH, AND I DIDN'T THINK WE HAD A PROBLEM.

UH, I DIDN'T KNOW WE HAD A PROBLEM.

AND, UH, THEN, THEN I TALKED WITH, UH, JIMMY OCKER AND HE SAID, WE HAD A PROBLEM.

AGAIN, DIDN'T KNOW WE HAD A PROBLEM.

UH, AND, AND BY THE WAY, I'VE TALKED TO JUDGE SHART ABOUT THIS, AND WE BOTH SCRATCHED HER WRIST.

WE DIDN'T KNOW THERE WAS A PROBLEM.

UH, THAT TURNS OUT THERE WAS A PROBLEM.

UH, AND AS I GOT TO WORKING WITH OUR HR DIRECTOR, DERON

[00:05:01]

IT WAS WORSE THAN WE THOUGHT.

UH, AND, UH, ONE OF THE THINGS I LEARNED IS SOME PEOPLE WHO HAD PROBLEMS HERE AT, AT ACOG, UH, WOULD NOT LET THE HR DIRECTOR HELP THEM WITH THE PROBLEM, WOULD NOT EVEN ALLOW THE CLAIM TO BE FILED, FILED.

UH, AND SO ALL OF THIS WAS GOING ON BEHIND THE, AND WE WERE ALL, I CALL IT FAT, DUMB, AND HAPPY.

WELL, WE, WE THOUGHT THINGS WERE GOING WELL, AND ALL OF A SUDDEN WE FOUND OUT THAT THEY WEREN'T.

AND IT WAS A TRAUMATIC EXPERIENCE THAT WE WENT THROUGH LAST YEAR TO GET THIS THING STRAIGHTENED OUT.

BUT WE DO HAVE IT STRAIGHTENED OUT AS FAR AS I KNOW.

AND I CHECK ON A REGULAR BASIS.

UH, AND I, ALL THE REPORTS I'M GETTING IS THAT WE ARE ON TRACK.

SO HOPEFULLY THESE LIAISONS REALLY WON'T HAVE ANYTHING TO DO EXCEPT CHECK IN ONCE A QUARTER WITH HR TO SEE IF EVERYTHING'S OKAY.

UH, ONE OF THE QUESTIONS THAT WE WOULD WANT YOU TO ASK WHEN YOU CHECK IN WITH THEM, ARE THERE ANY COMPLAINTS THAT THEY'RE NOT LETTING BE, BE HANDLED OR PROCESSED? UH, THAT'S SOMETHING THAT THEY CAN TELL YOU THAT RIGHT NOW, I, I'D HAVE TO ASK HER.

'CAUSE I DON'T KNOW IF THERE ARE.

I DON'T THINK THERE ARE ANYTHING, NO, NOTHING AT THIS MOMENT THAT ANYONE HAS, UH, BROUGHT TO OUR ATTENTION.

BUT THAT WAS A PROBLEM THAT WE HAD.

THAT IS CORRECT.

AND SO, IN ORDER TO GET AROUND THAT, IN ORDER TO TRY TO FLUSH OUT TO SEE IF WE REALLY GOT A PROBLEM, THE IDEA WOULD BE FOR THESE LIAISONS TO AT LEAST STICK THEIR HEAD IN THE OFFICE.

UH, VARIOUS, UH, DEPARTMENT HEADS.

IT JUST SAYS, ANYTHING GOING ON WE DON'T KNOW ABOUT.

UH, AND IF WE COME BACK, THERE'S NO PROBLEM.

YOU KNOW, WE ALL, WE HAVE THE ASSURANCE THAT IT'S GOING TO, IT'S GOING WELL.

UH, AND THIS IS JUST, UH, ONE MORE SAFETY NET TO PUT IN PLACE FOR WHAT WE MISSED LAST TIME.

THAT'S ALL IT IS.

THANK YOU FOR THAT EXPLANATION, SIR.

I LOOK FORWARD AND JUST WANT TO THANK, UM, MS. LEWIS AND JUDGE HEKE FOR AGREEING TO SERVE AS THE LIAISONS, UH, FOR THIS POSITION.

AND, UH, LOOK FORWARD AGAIN TO, UH, YOU ALL DOING WHAT YOU DO AND LETTING US, UH, KNOW WHAT'S GOING ON.

SO THANK YOU FOR, UH, FOR AGREEING TO SERVE TO SERVE.

I APPRECIATE YOU BOTH FOR THAT.

UH, WELL, THAT WILL TAKE US

[ Consent Agenda]

TO ITEM SIX, WHICH IS A CONSENT AGENDA.

UH, ITEM SIX.

UH, ARE THE MINUTES ON THAT? IS THERE A MOTION FOR THE CONSENT AGENDA? MOVE TO APPROVE.

WE'VE GOT A MOTION BY JUDGE TILL SECOND BY JUDGE, UM, EVANS.

ALRIGHT.

UH, ANY QUESTIONS OR DISCUSSION ON THAT? WELL, IF WE COULD PLEASE VOTE, UH, ANY ALL IN FAVOR WITH YES, YES, YES.

UH, ANY, ALL, ANY OPPOSED WITH NO, THE MOTION DOES CARRY.

THANK YOU FOR THAT.

THAT WILL TAKE US TO ITEM SEVEN,

[7. Discussion and appropriate action to approve the 2nd Quarter 2024 financial report. - Jhoan Torres A. Dashboard B. Balance Sheet C. Revenue and Expenditures D. Administrative Budgets E. Quarterly Investment Report]

WHICH IS DISCUSSION AND APPROPRIATE ACTION TO APPROVE THE SECOND QUARTERLY 2024 FINANCIAL REPORT, UH, MR. TORRES.

BUT BEFORE I TURN IT OVER TO YOU, JOHN, COME ON, PLEASE.

I'M GONNA ASK A CLIP.

HE, IF HE HAS ANY COMMENTS BEFORE WE GET STARTED WITH THIS.

UH, NO.

I THINK, UH, JOHN'S GOT A GOOD PRESENTATION THAT'LL, THE NUMBERS WILL SAY IT ALL.

CHAIRMAN, CHAIRMAN, CHAIRMAN, MEMBERS OF THE BOARD.

UH, MY NAME IS JOHN TORRES.

I'M THE CONTROLLER MEMBER, UM, HERE AT ACOG.

AND THE ITEM I'M BRINGING BEFORE YOU TODAY ARE OUR FINANCIAL STATEMENTS FOR THE SECOND QUARTER OF 2024.

UH, HERE WE HAVE A GENERAL OUTLINE OF WHAT WE'RE GONNA GO OVER.

I WON'T READ ALL OF THIS OFF, UH, TO YOU GUYS, BUT IT'S GONNA BE A HIGH LEVEL OVERVIEW OF WHERE OUR FINANCIAL DASHBOARD STANDS, BALANCE SHEET INCOME STATEMENT, AND WE'LL WALK DOWN EVERYTHING.

OH, REAL QUICK, I DO HAVE A COMMENT.

MY MISTAKE.

DON HAD A BABY RECENTLY.

SOMEONE EXECUTIVE.

I'LL LET YOUR WIFE KNOW THAT.

SO, YEAH, SO BABY ALDO, CORRECT? YES, SIR.

YEAH.

SO NOW HOW LONG HAS IT BEEN NOW? TWO WEEKS.

HE WAS BORN ON 4TH OF JULY.

WOW.

OH, SO IT'S BEEN A FUN COUPLE WEEKS.

I WAS GONNA SAY, THAT'S WHY I WAS ASK YOUR WIFE THIS MORNING.

WELL, CONGRATULATIONS.

BABIES ARE A BLESSING.

YES, MA'AM.

THEY'RE OKAY.

MOVING ON TO THE NEXT SLIDE.

WE HAVE OUR FINANCIAL DASHBOARD.

UM, YOU GUYS HAVE SEEN THIS BEFORE, AND THIS IS JUST MEANT TO PROVIDE THE HIGHEST LEVEL OVERVIEW OVER WE STAND.

I WON'T GO OVER ALL OF THESE, BUT I DO WANT TO POINT YOUR ATTENTION TO A COUPLE OF THEM.

IF YOU WOULD PAY ATTENTION TO THE TOP LEFT CORNER, YOUR PERCENTAGE EARNED AND SPENT, UH, CURRENTLY STANDS AT.

OUR REVENUES ARE 51% SPENT.

EXPENDITURES ARE 50% SPENT SO FAR IN THE YEAR.

SO WHERE EXACTLY WHERE WE WANNA BE AT THE MID-YEAR MARK.

NOW GRANTED SOME PROGRAMS ARE OVERPERFORMING, O SOME ARE OVERPERFORMING.

SO IF YOU LOOK IN THE MIDDLE RIGHT, UM, THE EXPENDITURE VARIANCE BY PROGRAM, YOU CAN KIND OF SEE WHERE SOME OF THESE ARE HAPPENING.

THAT BEING SAID, AT THIS POINT, WE DON'T BELIEVE THAT

[00:10:01]

THERE'S ANYTHING THAT WARRANTS, UM, MENTIONING TO THE BOARD.

IT'S JUST OPERATIONS.

AND WE EXPECT IT TO NORMALIZE AS A YEAR PROGRESSES.

UH, IN THE BOTTOM LEFT CORNER, WE HAVE OUR ACCOUNTS RECEIVABLE.

NOW THOSE NUMBERS ARE A LITTLE BIT HIGH AND I AM GONNA WALK OVER THE 90,000.

WE DID DO A DEEP DIVE ON THESE.

UH, AT THIS POINT, THERE IS NOTHING THAT IS CONCERNING.

IT'S JUST A LOT OF QUARTERLY BILLINGS THAT ARE COMING UP THAT THEY HAPPEN TO SIT IN OUR RECEIVABLES UNTIL WE COLLECT THEM.

BUT THE WAY THAT WE RECORD 'EM, THEY, THEY'RE GONNA LOOK UGLY LIKE THIS UNTIL WE BUILD THEM MOVING OVER TO OUR BALANCE SHEET.

UM, OUR TOTAL ASSETS AS OF JUNE, 2023 WERE $44.6 MILLION.

AND AS OF JUNE, 2024 ARE $46.9 MILLION.

UH, THE MAIN REASON FOR THAT INCREASE IS GOING TO BE OUR FIXED ASSET AND OTHER, AND THAT'S GENERALLY GOING TO BE DUE TO A LOT OF LEASEHOLD IMPROVEMENTS THAT WE DID IN THE LAST YEAR.

THE TENANT BUILD OUT FOR THE PLAZA FOR BAYER COUNTY.

AND A LOT OF, UM, THE GASP 97 OR 96 IMPLEMENTATION THAT WE DID LAST YEAR, FORTAS.

SO THERE'S A LOT OF THINGS THAT GO IN THERE.

BUT, UH, THE BUSES, THINGS OF THAT NATURE, MOVING OVER TO OUR TOTAL LIABILITIES AND FUND BALANCE, THAT AMOUNT WENT FROM $44.6 MILLION IN JUNE, 2023 TO $44.9 MILLION IN 2024 AS OF THE SAME TIME.

AND THE MAIN REASON THAT INCREASE IS REALLY REFLECTED IN OUR FUND BALANCE.

AND THAT'S MAINLY GOING TO BE DUE TO THE VETERANS PROGRAM.

THIS IS, UH, JUST A HIGH LEVEL OVERVIEW OF WHERE OUR FUND BALANCE IS AND JUST TO PROVIDE A VISUAL REPRESENTATION TO YOU GUYS.

UM, THERE ISN'T ANYTHING THAT YOU HAVEN'T HEARD BEFORE, BUT GENERALLY IT'S OPERATIONS.

DUE TO THE NATURE OF OUR OPERATIONS BEING MAINLY GRANTS, WE DON'T HAVE ANYTHING THAT REALLY SHOULD BE INCREASING OR INCREASING FUND BALANCE IF OPERATIONS ARE GOING AS EXPECTED, EXCEPT FOR OUR MILITARY AND VETERANS AFFAIRS PROGRAMS AND IDD, WHICH REALLY CAN GENERATE REVENUE.

AND SOMETIMES THAT DOES DROP TO OUR BOTTOM LINE AND INCREASE FUND BALANCE.

EXCUSE ME.

CAN YOU, UH, REMIND, DOES THE ART SITUATION R YES.

YEAH.

FROM MAITA, FROM MAITA JUNE, YOU HAVE A SIGNIFICANT DIFFERENCE ON RESTRICTED.

YES.

SO GENERALLY HOW IT WORKS WITH ART IS THAT THEY CAN DRAW DOWN FUNDS AND IT DOESN'T ALWAYS HAVE TO EQUAL THEIR EXPENDITURES.

AND SOMETIMES THAT DROPS DOWN TO OUR FUND BALANCE, AND THEN THEY USE THOSE, THAT MONEY BECOMES RESTRICTIVE FUND BALANCE, WHICH THEY USE IN THEIR OPERATIONS.

BUT THAT'S GENERALLY JUST KIND OF COURSE FOR BUSINESS.

THAT'S NOT REALLY SOMETHING THAT WE EXPECT TO KEEP.

AND AS THE GRANT RUNS OUT, THAT BALANCE WILL GO DOWN TO ZERO AND THEN THE NEXT GRANT, AND THEN THAT'LL HAPPEN AGAIN, AND SO ON AND SO ON.

SIGNIFICANT DIFFERENCE FROM YEAR TO YEAR, UH, FOR THE SAME MONTH UNRESTRICTED, YEAH.

500,000, UH, AND UH, 23 AND THEN 26,000.

IT'S THE BUSES.

IS THAT THE SAME, SAME REASON.

SO YEAH, LOOKING AT IT, YOU KNOW, AND THERE'S NOT ALWAYS, UM, IT, IT REALLY KIND OF DEPENDS ON THE METHODOLOGY OF THE PROGRAM AT THE TIME, BUT SOMETIMES THEY DRAW DOWN MORE IF, FOR EXAMPLE, THE FORMULA THAT THEY USE REQUIRES IT, THAT THEY NEED IT FOR OPERATIONS.

BUT YEAH, GENERALLY THEY HAVEN'T REALLY HAD ANYTHING OUTSIDE OF THE NORM.

I KNOW THAT THEY HAD A COUPLE YEARS AGO WHERE THEY USED SOME PHONE, BUT LAST YEAR TO NOW IT'S BEEN ABOUT THE SAME.

IT'S JUST OPERATIONS THAT THE NUMBERS HAPPENED APPEAR THAT WAY.

BUT, UH, NOTHING THAT REALLY MERITS CONCERNED OR ANYTHING OF THAT NATURE.

JOHN, ISN'T SOME OF THIS THE BUS MONEY THAT WAS ROLLED OVER FROM LAST YEAR TO THIS YEAR AS WELL? OR NOT? UH, WELL, THE BUSES OCCURRED AT THE END OF THE YEAR, RIGHT.

SO I, I DON'T THINK THEY WERE THAT PART.

MAY I ASK? MAYBE GET SOME.

IT APPEARS, AND I WOULD HAVE TO DIG INTO THE NUMBERS, IT APPEARS LIKE LAST YEAR, UM, THEY COULD HAVE DRAWN DOWN WITH A TIMING ISSUE.

THEY WOULD'VE HAD EXCESS FUNDS LAST YEAR FOR THOSE BUSES THAT THEY DID NOT SPEND.

SO THIS YEAR, WHEN YOU LOOK AT THAT VARIANCE OF RESTRICTED, IT LOOKS LIKE THEY SPENT IT.

UM, AND THEN THEY DIDN'T DRAW DOWN MORE AT THIS TIMING.

SO IT LOOKS LIKE, TO ME, IT LOOKS LIKE IF HE SAYS NORMAL OPERATIONS, IT'S JUST A TIMING DIFFERENCE OF WHEN THEY DREW DOWN REVENUES AND DIDN'T SPEND IT YET.

COULD YOU, COULD YOU IDENTIFY YOURSELF FOR THE RECORD, PLEASE? ABSOLUTELY.

HOPEFULLY I'LL GET A CHANCE TO YOU SPEAK.

MY NAME'S MIKAYLA MATHESON.

I'M THE AUDIT PARTNER ON THE ENGAGEMENT FOR THE AUDIT RESULTS.

SO I APOLOGIZE.

I JUST WANTED TO NO, NO, WE APPRECIATE THAT.

ARE YOU OKAY MR. RICHARD? YES.

YOU KNOW, I THINK WE'RE IN A VERY HEALTHY FINANCIAL POSITION AT THIS TIME.

UH, MOVING OVER TO OUR CASH INVESTMENTS.

UH, AS OF JUNE, 2023, WE HAD ABOUT $6.1 MILLION AT JUNE, 2024.

IT'S ABOUT THE SAME.

UH, THE MIX HAS CHANGED.

UM, WE ARE INVESTING MORE, WE HAVE LESS CASH, BUT,

[00:15:01]

MOVING OVER TO THE INVESTMENT SUMMARY, BROUGHT TO YOU BY THE PUBLIC FUND INVESTMENT ACT.

UH, OUR CURRENT IN INVEST BALANCE AT THE BEGINNING OF THE QUARTER WAS SEVEN $7,082,000.

AND AT THE, WE RECEIVED $69,000 IN INTEREST DURING THE SECOND QUARTER OF 2024.

AND THE BALANCE AT THE END OF THE QUARTER IS $5.7 MILLION.

UH, YOU KNOW, AS WE MOVE MONEY AROUND, USE IT FOR OPERATIONS, THIS MONEY WILL ABOUT INCREASE AND DECREASE.

AND GENERALLY WE'RE MOVING MONEY BETWEEN THE INVESTMENT POOL AT LONE STAR, KIND OF BACK AND FORTH.

SO YOU'RE GONNA SEE A LOT OF EBBS AND EBBS AND FLOWS THERE.

MOVING OVER TO THE ACCOUNTS RECEIVABLE, UM, A COUPLE THAT I DID WANNA TALK ABOUT IS TMHP, AND I'M GONNA FOCUS ON THE FOURTH COLUMN OVER THE OVER 90 DAY RECEIVABLE BALANCE.

THOSE ARE GOING TO BE OUR OVERNIGHT CLAIMS THAT CAN BE REBUILT UNTIL RECOMMENDED FOR WRITE OFFS.

SO GENERALLY WE BILL THOSE AS THEY OCCUR, BUT YOU KNOW, THEY PAY.

AND THEN IF THEY HAVE QUESTIONS, WE HAVE 365 DAYS IN THE YEAR TO RECLAIM THOSE.

THAT BEING SAID, SOME OF THOSE DO GET WRITTEN OFF AT THE END OF THE YEAR, BUT THIS BALANCE IS ALWAYS HIGH JUST DUE TO KIND OF HOW THAT BILLING PROCESS WORKS WITH THEM.

UM, MOVING ON DOWN TO TEXTILE RPT, WE HAVE OVER 90, UM, $4,000 SCHOLARSHIP FUND LIHEAP, $95,000 OVER 90.

WE'RE DOING THE FY 23 CLOSEOUT.

UM, THAT'S GONNA BE BILLED IN JULY, T-D-H-C-A APPROVED MARCH BILLINGS.

THEY'RE AWAITING, WE'RE AWAITING PAYMENT ON THAT.

UH, WE DON'T FORESEEING ISSUES.

THERE WERE SOME LA UM, ISSUES WITH THEM BECAUSE WHEN THEY ACCEPTED OUR NICK NICK LETTER, NICK NICK LETTER WITH OUR RATES FOR 2024, UM, A LOT OF THE TIME THAT SETS US BACK WHEN IT COMES TO BILLING.

AND SO ONCE THAT GOT ACCEPTED BY THEM, WE SHOULD BE ABLE TO CLEAN THESE BALANCES UP QUICKLY.

MOVING OVER TO VIA METRO, THEY CONVERTED TO A NEW SYSTEM, UM, JANUARY THROUGH APRIL.

SHOULD BE RECEIVED IN LATE JULY.

UM, AND WE DON'T FORESEE ANY ISSUES RECEIVING DEBT FUNDS.

AND FOR T-D-H-C-A-D-O-E, UM, THAT MONEY WAS RECEIVED ALREADY, SO THAT WILL BE CLEARED.

MOVING OVER TO THE STATEMENT OF REVENUES AND EXPENDITURES, OUR ANNUAL BUDGET IS 86.9 OR REVENUES, UH, WAS $86.9 MILLION AS I SPOKE EARLIER.

AND WE'RE AT 44.6.

WE'RE THE HALFWAY MARKET OF THE YEAR.

WE'RE 50% SPENT IN REVENUES AND EXPENDITURES EXACTLY WHERE WE WANNA BE.

UH, UM, ONE THING THAT YOU ARE GONNA NOTICE IS THAT THE YEAR TO DATE ACTUAL BUDGET ON THE REVENUE OVER EXPENDITURES IS 816,000.

AND OUR IN THE BUDGET AND OUR ACT IS 1.8 MILLION.

SO THAT IS A BUDGET MOD THAT WE ARE GOING TO BE BRINGING, UM, IN A COUPLE OF ITEMS. UM, NOW BY PROGRAM FOR OUR ALAMO AGING PROGRAM, THERE ARE $164,000 OVER BELOW BUDGET.

UH, THE PROGRAM IS AWARDED LESS FUNDING THAN ANTICIPATED PROGRAM IS GOING TO DO A BUDGET MODIFICATION.

UM, SO A LOT OF THESE ARE GOING TO BE CORRECTED WITH BUDGET MODIFICATIONS, BUT I WILL GO AND WALK THROUGH THEM.

FOR ALAMO REGIONAL TRANSIT, THERE ARE $489,000 OVER BUDGET, AND THAT'S DUE TO THE BUSES THAT, UH, CLIFF WAS MENTIONING EARLIER THAT ARRIVED LAST YEAR.

THEY WERE BUDGETED IN FY 23, THEY OCCURRED THIS YEAR.

THEY'RE CURRENTLY COSTING VARIANCE, SO WE'RE GONNA DO A BUDGET MODIFICATION TO CORRECT THAT FOR THE IDD PROGRAM, THEY'RE $326,000 BELOW BUDGET.

UM, UH, IT'S WELL DOCUMENTED THAT THEY HAD VACANCIES WITHIN THE DEPARTMENT, SO WE'RE GONNA GO AHEAD AND DO A BUDGET MODIFICATION THERE.

I BELIEVE THAT THEY'RE ALMOST FULLY STAFFED NOW.

UM, SO THEY'VE REALLY MANAGED TO TURN THAT AROUND.

AND SO, BUT WE'RE STILL GONNA BE DOING A MODIFICATION THERE TO CORRECT WHAT'S HAPPENED BEFORE.

I'M INTERRUPT YOU JUST A SECOND ON IDDI KNOW IF YOU REMEMBER, EARLY ON IN THE YEAR, IDD WAS LOSING QUITE A BIT OF MONEY AND WE WERE HAVING A HARD TIME STAFFING PEOPLE AND WE TALKED, I KNOW WITH THE BOARD ALL DISCUSSED THE ISSUES OF, UH, EMPLOYEE RETENTION, THINGS THAT WE COULD DO TO KEEP THEM.

AND I REALLY WANT TO SAY I WISH SHE WAS HERE.

VIRGINIA, CHARLES'S PRAISE, SHE HAS TAKEN OVER AS SENIOR DIRECTOR OF IDD.

AND AT SOME TIME WE WERE UNDERSTAFFED.

NOW WE'RE FULLY STAFFED.

LAST MONTH, IDD TURNED A PROFIT FOR WHAT YOU WILL, OR GENERATED POSITIVE REVENUE TO THE TUNE OF $2,000.

IF YOU LOOK AT JUNE 24, I SAY LAST MONTH, LAST REPORT MAY, IF YOU LOOK AT JUNE 57,000 TO THE GOOD.

SO IT LOOKS LIKE THE CHANGES THAT SHE'S MADE, UH, HAVE REALLY MADE A BIG DIFFERENCE IN THAT PROGRAM.

AND WE HOPE TO GET IT, GET THE SHIP RIGHT AND HOPE,

[00:20:01]

HOPEFULLY SHE'S DONE THAT.

SO IT LOOKS VERY POSITIVE GOING FORWARD.

JACOB, PLEASE LET HER KNOW THAT WE APPRECIATE THE WORK THAT SHE'S DOING.

YES, MA'AM.

ABSOLUTELY.

SHE'S DONE A GREAT JOB.

THANK YOU, SIR.

MOVING OVER TO THE WEATHER PROGRAM.

UH, THEY'RE $419,000 BELOW BUDGET.

THAT'S GONNA BE DUE TO LIVE HEAP AND D-O-A-B-I-L.

UM, SO WEATHERIZATION WAS AWARDED MORE BIO FUNDING AND THEY RECEIVED IT LATE AND DIDN'T REALLY HAVE ENOUGH TIME TO REALLY GET IT OFF THE GROUND, YOU KNOW, IN ACCORD WITH THEIR OTHER GRANTS.

SO BIO DID ACTUALLY GIVE THEM, THEY, THEY WERE GRANTED AN EXTENSION UNTIL FY 2026.

SO BECAUSE OF THAT, THAT GIVES US A LOT MORE TIME TO SPEND THOSE FUNDS.

SO WE'RE GONNA DO A BUDGET MODIFICATION TO GIVE OURSELVES THE BREATHING ROOM AND GIVE PROGRAM, UH, TIME TO SPEND THOSE FUNDS APPROPRIATELY.

SO THAT'LL BE A BUDGET MODIFICATION AS WELL.

UM, YEAH.

MOVING OVER TO THE ADMINISTRATIVE BUDGETS.

OUR YEAR TO DATE ACT IS 2.7 MILLION.

OUR YEAR TO DATE BUDGET IS 2.8 MILLION.

UH, WE'RE CURRENTLY 4% BELOW BUDGET.

UH, AT THIS TIME WE DON'T BELIEVE THAT THERE'S, THERE'S GONNA BE A LOT OF RE BECAUSE OF THE REORGANIZATION THAT HAPPENED EARLIER THIS YEAR, WE'RE GONNA BE MOVING SOME OF THESE FUNDS AROUND.

UH, I UNDERSTAND THAT SOME OF THOSE VARIANCE NUMBERS ARE PRETTY LARGE, BUT THOSE ARE BEING MODIFIED.

UH, THAT THIS TIME THOUGH, WE EXPECT TO BE IN LINE THROUGH THE END OF THE YEAR .

UM, SO AT THIS TIME, UH, STAFF REQUESTS APPROVAL TO APPROVE THE SECOND QUARTER FINANCIALS, AND I'D BE HAPPY TO ANSWER ANY QUESTIONS YOU MAY HAVE.

ALL RIGHT, THANK YOU.

HOW COME VIA CAN'T PAY? I MEAN, WHO CARES? YOU HAVE ANY SYSTEM? THEY'RE MUCH BETTER THAN THEY WERE.

I THINK THEY'RE CATCHING UP.

THEY'RE MUCH BETTER THAN THEY WERE.

BUT, BUT THIS ISN'T, THIS ISN'T NEW.

THIS HAS BEEN GOING ON FOREVER.

AS LONG AS I'VE BEEN AT THE AGENCY, THAT HAS BEEN A CONTINUING ISSUE.

YEP.

AND WE HAVE TO PAY AS COUNTIES 30 DAYS, WE HAVE TO PAY OUR BILLS.

DO YOU NOT HAVE ANY TYPE OF STATUTORY OBLIGATION? WE, WE DO TOO.

RIGHT? WE PAY WITHIN 30 DAYS AND WE DIS DISRUPTING THE RISK IF WE DON'T.

UM, YOU KNOW, AND WE, IT FEELS LIKE THEY CURRENTLY HAVE THE, NOT EXCUSE, BUT THEY'RE ALWAYS IMPLEMENTING A NEW SYSTEM.

I THINK THEY'RE TRYING TO GET IT TOGETHER.

UM, BUT SO THAT'S USUALLY, HEY, WE'RE REVIEWING IT, WE'RE DOING THIS, AND WE'RE IMPLEMENTING.

THAT'S, I WON'T NOTE THAT IT'S, IT'S A LOT LOWER THAN IT HAS BEEN IN THE PAST.

SO IT'S SEEN A MARKET IMPROVEMENT.

BUT I AGREE WITH YOU, SIR.

IT'S, UM, BUT IF YOU TAKE THE TAX, THE TAX POOL INTEREST RATE, THEY'RE, THEY'RE KEEPING THAT MONEY SIX MONTHS.

THAT HAS QUITE A BIT OF VALUE NOW.

IT USED TO WASN'T AS MUCH VALUE, BUT FIVE.

APPRECIATE.

NOW THEY'RE, THEY'RE, YOU KNOW, THEY'RE .

THAT SHOULD BE OUR, OUR INTEREST WE'RE GAINING NOT, NOT HIS, I DON'T KNOW.

UH, I'LL TALK TO JULIO, WE'LL CONTINUE TO PUSH 'EM, BUT YOU KNOW, I KNOW THAT IT'S BEEN, UH, DEFINITELY A CONVERSATION THAT WE'VE HAD WITH THEM.

AND WE'LL CONTINUE TO ON, WE'RE GONNA CHARGE 'EM A CREDIT CARD INTEREST IF THEY DON'T PAY LATE FEES, SEE IF THEY COULD DO IT.

THAT'S CRAZY.

BUT IT SOUNDS LIKE, SOUNDS LIKE ALSO THAT MAY BE TIME FOR AN EXECUTIVE CONVERSATION.

I WAS GONNA TAKE THAT.

WELL, THEY'VE GOTTEN A NEW CHIEF ADMINISTRATIVE OFFICER.

MM-HMM.

AND THAT IS JOHN CLAMP.

SO MAYBE WE CAN TALK TO JOHN AND SEE IF, IF THEY CAN IMPROVE THEIR PROCESSES.

WELL THAT'S A GOOD, UH, PLACE TO ASK FOR ANY DISCUSSION ON THE ITEM, ITEM BEFORE THERE'S A MOTION, PLEASE.

IF NOT, IS THERE A MOTION TO ACCEPT AND APPROVE THE, UH, SECOND QUARTERLY 2024 FINANCIAL REPORT APPROVAL AND SECOND TO FULL BOARD AND SENT TO THE BOARD? PARDON ME? IS THAT ALL RIGHT WITH YOU? YES, MA'AM.

AND SENT TO THE BOARD? PARDON? SECOND.

WE GOT A MOTION, UH, BY, UH, MR. HASH OR JUDGE UNTIL SECOND.

UH, ANY OTHER QUESTIONS OR DISCUSSIONS? WE ARE READY TO VOTE IF ALL IN FAVOR SAY AYE.

AYE.

ANY OPPOSED? THE AYES HAVE IT.

UH, THE MOTION CARRIES.

ITEM, A DISCUSSION AND APPROPRIATE ACTION REGARDING THE RECOMMENDATION FROM THE EXECUTIVE DIRECTOR TO APPROVE AC O'S ANNUAL AUDIT REPORT FOR THE YEAR ENDING DECEMBER 31ST, 2023.

THANK, THANK YOU TIME.

WELL, DON'T GO .

DISCUSSION

[8. Discussion and appropriate action regarding the recommendation from the Executive Director to approve AACOG's Annual Audit Report for the year ended December 31, 2023 - Jhoan Torres]

AGAIN, UH, JOHN TORRES.

UH, SO IT ACTUALLY, WHAT WE NEED PRESENTING THAT IS GOING TO BE MS. MCKAYLA, MATTHEW WALKER AT FOR AZAR.

SO I'M GO AND DIVE SPEECH AND, UM, TAKE THIS PRESENTATION.

WELL, WELCOME TO THE HOT TEA, MCKAYLA .

I FORMALLY INTRODUCED MYSELF.

MAD CHAIR.

I TOLD YOU IT WAS HOT.

I TURNED JUST LITTLE,

[00:25:02]

SORRY JOHN, I JUST WANTED TO ADD SOME COMMENTARY ON THAT FOR YOU.

ALL.

MY NAME'S MIKAYLA MATH, AND I AM THE AUDIT PARTNER ON THE EIGHTH HUB ENGAGEMENT, THE AUDIT.

AND SO I'M GONNA SHARE THE AUDIT RESULTS AND I HAVE A PACKAGE IN, I'M GONNA FIVE MINUTES PREPARE SLIDES.

I JUST WANT, JUST WANNA COMMUNICATE WITH Y RESULTS, ALL THOSE RESULTS, RESULTS.

UM, I DID SAY FOR THOSE AROUND THE ROOM GOING, WHO THE HECK IS THAT? WE, UM, I'LL GIVE YOU A LITTLE BACKGROUND ON THAT.

I'VE PUT AT THE SAME FIRM FOR ALMOST 20 YEARS.

WE'VE JUST CHANGED NAMES FOUR TIMES.

SO WAY BACK WHEN IF YOU'VE BEEN IN SAN ANTONIO.

I STARTED WITH THE HANKY GROUP, UM, THAT WAS FORMERLY KNOWN AS BKD, THAT WAS FORMERLY KNOWN AS FOR US.

AND JUST JUNE OF ONE, WE CREATED A GLOBAL NETWORK WITH MAZARS, WHICH WAS A NATIONAL, THEY WERE MAINLY INTERNATIONAL.

SO WE WANTED TO ENSURE, UM, THAT WE GREW WITH ALL OF OUR CLIENTS.

UM, THE INTERNATIONAL COMMERCE AND TRANSACTIONS AND, UM, INTERACTIONS HAVE JUST GROWN ASTRONOMICALLY, UM, WITH, WITH THE TIMES.

AND SO WE WANTED TO MAKE SURE THAT WE HAD THOSE RESOURCES FOR THIS CLIENT.

WHAT IT MEANS FOR ACOG, REALLY, IF YOU DO HAVE INTERNATIONAL TRANSACTIONS, WE HAVE RESOURCES, BUT MAINLY THERE'S NO MAZARS OFFICE HERE IN TOWN.

YOU GET THE SAME GREAT TEAM, UM, WITH US OVERSEEING THAT.

SO I DO LEAD OUR PUBLIC SECTOR PRACTICE FOR OUR AUSTIN AND OUR SAN ANTONIO OFFICES.

I LIKE TO TELL EVERYONE I JUST LIVE ON 35, SO LIVE IN NEW BRAUNFELS AND JUST TRAVEL IN BETWEEN THOSE OFFICES.

UM, BUT NOW ONTO THE AUDIT RESULTS.

UM, SO WE ISSUE THREE OPINIONS FOR ACOG.

THE FIRST IS OVER THE FINANCIAL STATEMENTS FOR THE YEAR ENDING DECEMBER 31ST, 2023.

WE ALSO THEN, BECAUSE LIKE JOHN MENTIONED, THIS ORGANIZATION RECEIVES MANY, UH, FEDERAL FUNDS.

WE HAVE TO ENSURE THAT THEY ARE IN COMPLIANCE WITH THE FEDERAL GOVERNMENT AND ISSUE A COMPLIANCE AUDIT OVER CERTAIN MAJOR PROGRAMS. SO WE DO A DEEP DIVE IN TO ENSURE THAT THE ACTIVITIES, THE EXPENSES THAT THEY'RE INCURRING ARE ALLOWABLE PER THE FEDERAL GOVERNMENT RULES.

THEY'RE REPORTING ACCURATELY, THEY'RE DRAWING DOWN ACCURATELY, ALL THAT STUFF.

UM, AND IN ADDITION WITH THAT, THEY REQUIRE, THEY BEING THE FEDERAL GOVERNMENT, REQUIRE US TO LOOK AT THEIR INTERNAL CONTROLS OVER THOSE PROGRAMS AND ENSURE THAT THEY'RE OPERATING EFFECTIVELY.

SO WE ISSUE AN OPINION ON THAT.

SO GOOD NEWS TO REPORT IS ALL THREE OF THOSE OPINIONS WERE UNMODIFIED OR WHAT WE LIKE TO CALL A CLEAN OPINION.

SO THAT'S THE HIGHEST LEVEL OF ASSURANCE THAT WE CAN PROVIDE, THAT ALL THE TRANSACTIONS ARE BEING RECORDED CORRECTLY, ARE BEING REPORTED TIMELY, UM, AND THAT THE CASH IS BEING USED IN ACCORDANCE WITH THE FEDERAL GOVERNMENT.

SO THAT'S THE GREAT NEWS.

UM, I'M NOT GONNA GO OVER THE FINANCIAL STATEMENTS THERE.

UH, I LIKE TO CALL A A A TIME SNAP IN, IN TIME.

THAT WAS IN 1231.

JOHN JUST DID A GREAT JOB OF GOING OVER THE SIX 30.

UM, A FEW THINGS TO REPORT IS THERE WAS ONE AUDIT ADJUSTMENT.

IT WAS RELATIVELY IMMATERIAL AND IT WAS RELATED TO LIKE YEAR TWO OF LEASES, JUST, UM, CLEANUP OF THOSE LEASES.

IF YOU RECALL LAST YEAR, AND IF YOU'VE BEEN SITTING IN ANY OF THE BOARD MEETINGS, LEASES HAVE BEEN CHATTED ABOUT FOR 15 YEARS AND THEY IMPLEMENTED IT LAST YEAR.

THERE'S A FEW, UM, TRANSACTIONS RELATED TO THAT THAT THEY CLEANED UP.

SO NOTHING WITH THE PROGRAMS, NOTHING OF THAT.

IT WAS THE ONLY AUDIT ADJUSTMENT THAT WE HAD, UM, THAT WAS IN MATERIAL.

THERE WERE TWO PAST ADJUSTMENTS.

SO WHEN WE AUDIT, WE SET A THRESHOLD.

IF IT'S ANYTHING OVER A CERTAIN THRESHOLD, THEN WE PROPOSE THAT THEY, UM, MAKE THAT ADJUSTMENT.

IF IT'S NOT OVERLY MATERIAL THOUGH, MANAGEMENT CAN DECIDE TO PASS ON THOSE ADJUSTMENTS BECAUSE THEY'RE NOT MATERIAL TO THE OVERALL FINANCIAL STATEMENTS.

THERE WERE TWO RELATED TO THAT.

UM, CAME IN AND SAID THAT YOU MAY HAVE A PENALTY ASSESSED AGAINST YOU.

AND SO AT THAT TIME, THEY DIDN'T HAVE, THEY WERE GOING, UM, MITIGATING THAT RISK OR MITIGATING AND PROVIDING THE SUPPORT THAT THEY DIDN'T REALLY HAVE THAT PENALTY.

THEY DIDN'T GET A FINALIZED YET LETTER YET.

SO WE SAID, WELL, YOU MAY NEED TO RECORD THIS AND HAVE THAT OBLIGATION IN BETWEEN THIS TIME.

NOW THEY HAVE HAD VERBAL CONVERSATIONS THAT SAY THAT IT'S WAIVED.

THEY DON'T OWE A PENALTY.

SO THAT'S WHY THEY DECIDED TO PASS ON THE ADJUSTMENT BECAUSE THEY TRULY THINK, UM, AS OF THE REPORT DATE, THEY HAVEN'T ACTUALLY GOT THAT FORMAL LETTER.

SO THAT WAS A PROPOSED ADJUSTMENT, BUT THEY DON'T THINK THAT THAT'S GOING TO CHANGE AT ALL, WHICH IS WHY THEY DID NOT RECORD IT.

UM, AND THEN THE OTHER ONE WAS JUST RELATED TO, UM, SOME, AND I'LL SAY IMMATERIAL, FIXED ASSET ADDITIONS.

THOSE SHOULD HAVE BEEN RECORDED IN LAST YEAR.

THEY CAME ON REALLY LATE OF REALIZING THAT.

SO WE HAD ALL AGREED BECAUSE THEY WERE NOT MATERIAL THAT LET'S JUST RUN THEM THROUGH THIS YEAR IN 24, BUT THEY WERE REALLY RELATED TO LAST YEAR.

AGAIN, THAT WAS A PAST ADJUSTMENT JUST ON THE TIMING THING.

BUT THOSE HAVE

[00:30:01]

BEEN RECORDED, UM, JUST IN DIFFERENT YEARS.

UH, IN ADDITION TO THAT, UM, WE WALK THROUGH THEIR INTERNAL CONTROL PROCESSES.

SO WE ASK ALL OF THE DEPARTMENTS HOW DO THEY PROCESS CASH? HOW DO THEY PAY THEIR BILLS, HOW DO THEY PROVIDE MONITORING AND OVERSIGHT TO THE ORGANIZATION TO ENSURE THERE'S NOT ANY KIND OF MISAPPROPRIATION OF ASSETS OR FRAUDULENT FINANCIAL REPORTING? AND WE GAIN AN UNDERSTANDING OF THOSE INTERNAL CONTROLS AND WALK THROUGH THOSE.

IF THERE WERE ANY BUST IN THOSE INTERNAL CONTROLS OR THERE'RE NOT DESIGNED EFFECTIVELY, WE WOULD EVALUATE THOSE AS DEFICIENCIES OR IF THEY WERE SIGNIFICANT ENOUGH, A SIGNIFICANT DEFICIENCY.

AND IF THERE WERE MATERIAL TO THE OVERALL FINANCIAL STATEMENTS, THEY WOULD BE MATERIAL WEAKNESSES.

SO HAPPY TO REPORT THERE WAS NO MATERIAL WEAKNESSES OR SIGNIFICANT DEFICIENCIES.

SO ALL THAT TO SAY IS KUDOS TO JULIO, TO JOHN AND HIS TEAM, TO THE OVERALL ORGANIZATION, TO ENSURING THAT EVEN THE CHANGE OF, OF STRUCTURE, THE REORGANIZATION, UM, ALL OF THE HICCUPS OVER THE PAST YEAR, THEY STILL HAD THE PROCESSES AND THE INTERNAL CONTROLS IN PLACE TO, UM, RECORD THE TRANSACTIONS AND PRESENT TO YOU A FINANCIAL REVIEW THAT'S RELATIVELY, UM, ACCURATE EACH QUARTER THAT YOU ALL GET THOSE RESULTS.

UM, THOSE ARE THE, THE BIG THINGS.

I BELIEVE IN YOUR PACKETS OR YOUR HANDOUTS, YOU DO HAVE THE FULL, UM, FINANCIAL STATEMENTS.

YOU ALSO HAVE A LETTER IN THERE TO THIS BOARD THAT KIND OF, UM, GOES OVER SOME OTHER COMMUNICATIONS SUCH AS IF YOU WANTED TO KNOW ANY OF THEIR POLICIES, HOW THEY ACCOUNT FOR THINGS.

THOSE ARE IN THE FINANCIAL STATEMENTS WE'RE TO POINT THOSE OUT.

UM, IF THEY HAD ANY ALTERNATIVE ACCOUNTING TREATMENTS OR UNUSUAL, UM, ACCOUNTING POLICIES THAT THEY IMPLEMENTED, WE WOULD LET YOU ALL KNOW THAT THEY WERE NO MATTERS REPORTABLE THERE.

UM, THEY DID GO THROUGH ANOTHER IMPLEMENTATION THIS PAST YEAR.

UM, IT'S MUCH LIKE LEASES.

SO THEY, THEY HAD A, A LITTLE BIT OF HEAD AROUND THAT, BUT THAT WAS A NEW IMPLEMENTATION THIS YEAR THAT YOU'LL SEE IN THE FINANCIAL STATEMENTS.

OTHER THAN THAT, THE FINANCIAL STATEMENTS ARE RELATIVELY CONSISTENT TO LAST YEAR.

UM, SO THAT IS THE BIG HIGHLIGHT ITEMS. I'LL LEAVE IT OPEN NOW IF YOU HAVE ANY QUESTIONS FOR ME.

ALRIGHT, THANK YOU MIKAYLA.

OUR THOUGHTS GO OUT TO YOU AS YOU TRAVEL.

I 35 .

SO, BUT THANK YOU SO MUCH FOR YOUR REPORT AND WE'RE HAPPY TO HEAR THAT THE ATTORNEY OF THE, UM, CONTROLS WERE IN PLACE.

AND THAT WAS GOOD.

THAT'S, I THINK A VERY IMPORTANT PART OF THE PROCESS.

SO THANK YOU.

UH, AND MEMBERS, DO YOU HAVE ANY QUESTIONS OR COMMENTS ON THE AUDIT? THANK YOU.

I HAVE A QUESTION.

UH, IN YOUR, IN YOUR REVIEW OF INTERNAL CONTROLS, UH, AND CONTROLS IN GENERAL, DO YOU DO CYBERSECURITY AS PART OF IT? AS FAR AS THE AUDIT SCOPE, WE UNDERSTAND AND GAIN A UNDERSTANDING OF THEIR IT INFRASTRUCTURE.

SO WE ASK THEM WHAT DO THEY DO AROUND THAT KIND OF RISK? DO THEY HAVE FIREWALLS? DO THEY HAVE PASSWORDS? ARE THERE SERVERS SECURE? UM, THAT'S THE, THE GIST OF ENSURING THAT THEY HAVE PROPER FIRST ROUND SETUPS AS IT RELATES TO CYBERSECURITY AND DIVING DEEP INTO THAT, THAT'S OUT OF THE SCOPE OF THE AUDIT.

AND SO WE, WE DO NOT LEVEL OF IT UP TO YOU.

DO YOU DO OTHER IT ASSESSMENTS? WE DO.

THAT'S WHAT I'M THINKING.

AND THAT'S KIND OF WHAT WE DOCUMENT IN OUR REPORTS AS WELL.

BUT NOT FOUR OF US MAZARS ITSELF.

WHAT, WELL THEN THEY, THEY SHOW YOU WHAT THEY'VE DONE AND HOW THEY SECURE, AND THEN YOU BASICALLY ACCEPT WE GET THE FIRST.

SO A LOT OF THOSE CYBER SECURITY AND IT RISK ASSESSMENTS ARE VERY, VERY PRIVATE, RIGHT? BECAUSE THEY HAVE A LOT OF THE INFRASTRUCTURE.

SO WHAT WE ASK IS, CAN YOU SHOW US THAT IT'S DONE? CAN YOU SHOW US THE FIRST PAGE? WE DON'T ACTUALLY REVIEW IT, UM, FROM A CONFIDENTIALITY STANDPOINT AND THE NEED THAT WE DON'T NEED IT.

SO I COULDN'T REPORT ON IT.

UH, THE IA POLICY, UM, AND THE, UH, UH, WELL, WE'RE WORKING RIGHT NOW, I DON'T KNOW IF YOU'RE AWARE OF IT, BUT WE WERE AFFECTED BY THAT SPECTRUM OUTAGE A WEEK OR SO AGO.

AND TO BUILD ON WHAT YOUR CONCERN IS, I KNOW WE'VE TALKED ABOUT CYBERSECURITY IN THE PAST AND WE'RE WORKING ON IT RIGHT NOW TO GET TO, UM, AND, AND THERE'S SOME THRESHOLDS THAT WE'LL HAVE TO DECIDE WHETHER WE WANT TO CROSS AS FAR AS COST AND WHAT IMPLEMENTATION WOULD BE.

BUT I'VE ASKED JACOB, AND JACOB AND BREN ARE WORKING VERY HARD ON GETTING ACOG TO THE POINT WHERE WE CAN MEET THE HIGHEST LEVEL OF STANDARDS TO ACHIEVE, UH, WHEN I SAY THE HIGHEST LEVEL OF CYBERSECURITY INSUR INSURANCE THAT'S AVAILABLE, THEY HAVE VERY RIGOROUS STANDARDS FOR ISSUING THOSE LEVELS OF POLICIES THAT I'VE ASKED THEM TO REACH, SEE WHAT IT WOULD TAKE TO GET US TO THE TOP LEVEL.

UH, BECAUSE CYBERSECURITY IS SO IMPORTANT, AS, AS I GATHER FROM YOUR QUESTION, YOU ALREADY REALIZE, UH, AND WE ARE IMPLEMENTING OTHER THINGS RIGHT NOW ON EVERYTHING FROM,

[00:35:01]

AND SO WE ARE, UH, AND WE HAD THEN IN THE PAST DISCUSSING, UH, REDUNDANT INTERNET ACCESS.

AND SO NOW WE HAVE ELEVATED THAT TO A PRIORITY TO GET US A SECONDARY SERVICE PROVIDER, UH, PRIMARILY THROUGH AT AND T.

BUT SO WE ARE ON TOP OF THE CYBERSECURITY ISSUE.

WE'RE VERY CONCERNED ABOUT IT.

BUT THANK YOU FOR YOUR QUESTION BECAUSE IT'S VERY IMPORTANT.

AND AS I'VE TOLD ALL OF YOU BEFORE, I ENCOURAGE YOU ALL TO REVIEW YOUR SYSTEMS BECAUSE IT IS BECOMING A PRIORITY EACH AND EVERY DAY.

IT'S A, IT'S A GREATER THREAT.

ALL RIGHT.

ANYONE ELSE? SO WILL YOU ISSUE A LETTER? YES.

SO TODAY WE, YOU ALL, IT COMES AFFORD THIS BOARD TO APPROVE.

ONCE IT'S APPROVED, WE SEND A MANAGEMENT REPRESENTATION LETTER TO MANAGEMENT TO ENSURE THAT THEY REPRESENT VARIOUS THINGS AS THEY'VE ANSWERED ALL OF OUR QUESTIONS CORRECTLY, THEIR KNOWLEDGE PROVIDED US EVERYTHING THAT WE NEED, ET CETERA.

SO THEY SIGN THAT REPRESENTATION LETTER AND THEN WE'LL ISSUE THAT, UM, EXECUTE THE FINAL AU.

SO IN YOUR, IN YOUR MATERIALS, YOU SHOULD HAVE DRAFT LETTERS AND STUFF.

AND SO THAT WILL FINALIZED TO WHERE, UM, JULIO OR JOHN JOHN CAN SEND YOU OUT THE FINALIZED AUDIT REPORT.

SURE.

I KNOW THAT, THAT WITHIN COUNTIES, LIKE IN IN OUR COUNTY, THAT THEY'LL HAVE AREAS OF CONCERN, NOT NECESSARILY DEFICIENCIES.

WERE THERE ANY AREAS OF CONCERN? YES.

WELL, I'M NOT CONCERN, THERE ARE CERTAIN, I TALKED ABOUT DEFICIENCIES.

THERE ARE CERTAIN DEFICIENCIES THAT ARE JUST, UM, NOT NECESSARILY MATERIAL TO BRING.

WE CAN CHAT ABOUT 'EM, DISCUSS WITH THEM ORALLY, WHICH ARE BEST PRACTICE OR THINGS LIKE THAT.

UM, THE ACCOUNTING DEPARTMENT IS, IS, I'LL SAY, I'LL SAY SMALL, BUT 90, RIGHT? COST BENEFIT.

YOU CAN'T HAVE A HUGE ACCOUNTING DEPARTMENT LIKE PUBLIC COMPANIES DO, SUCH AS COCA-COLA OR AT AND T TO SEGREGATE ALL DUTIES.

SO A LOT OF MY PUBLIC SECTOR CLIENTS, NONPROFIT CLIENTS, WILL HAVE SEGREGATION DUTIES WHERE THEY JUST CAN'T SEGREGATE THOSE ENOUGH.

SO THAT'S, UM, NOT NEW TO WHOEVER.

NOW WHAT WE DO LOOK FOR ANY KIND OF MITIGATING THINGS SUCH AS OVERSIGHT OF REVIEW OF FINANCIAL STATEMENTS AT A HIGH LEVEL OR THINGS LIKE THAT, THAT LOWERS, ITS NOT BE A SIGNIFICANT DEFICIENCY FOR MATERIAL WEAKNESS.

SO WE, UM, ALWAYS REVIEW THOSE, ALWAYS CHAT ABOUT THEM AND SEE HOW WE CAN BEST HELP THEM SEGREGATE THOSE TO THE BEST WAY POSSIBLE.

UM, WITH THE SIZE OF THAT ACCOUNTING, UM, STRUCTURE THAT THEY HAVE.

UM, WE ALWAYS CHAT ABOUT CYBERSECURITY OR IT RISK COMPLIANCE TO ENSURE THAT THEY ARE AWARE OF JUST THE NEW THINGS THAT HAPPEN.

I MEAN, DAILY, I GET CALLS OF SOME SOMETHING HAPPENING THERE.

AND SO WE ALWAYS LOOK INTO THAT.

UM, AND THEN THE OTHER BEST PRACTICE TO KEEP UP WITH THE, THE NEW STANDARDS, THEY, THEY LIKE TO KEEP US BUSY.

AND I SWEAR THERE'S A NEW STANDARD THAT COMES OUT EVERY SINGLE YEAR NOW, UM, I WAS TELLING ONE BOARD THAT I, NOT, I'M YOUNG, I DON'T LIKE TO AGE MYSELF, BUT I THINK I STARTED AND IT LIKE GS B 39 OR SOMETHING AND WE'RE UP TO 97, RIGHT? WE'RE AT A HUNDRED, A HUNDRED.

WE JUST, THEY IMPLEMENTED GA B HUNDRED, WHICH WAS VERY, VERY MINIMAL, UH, EFFECT, BUT THEY WERE RAMPANT WITH THEIR WITH THEIR STANDARDS.

SO FROM A BEST PRACTICE STANDPOINT, WE ENSURE THAT THEY HAVE THE KNOWLEDGE, THE INSIGHT TO CONTINUE, UM, THE MAKE SURE THEY HAVE THEIR PROFESSIONAL EDUCATION AS WELL TO ENSURE THAT THEY HAVE ON TOP OF THAT, BUT ANY OTHER LARGE, NOT AWARE OF.

GOOD.

AND THEN FOR, I THINK A LITTLE FOLLOW UP ON YOUR QUESTION, JUDGE, THEN TO HELP WITH THE SEPARATION OF DUTIES, BECAUSE IT IS A SMALL DEPARTMENT AND I'M FROM A SMALL CITY, SOMETHING SIMPLE AS THE PERSON OPENING THE MAIL, NOT BEING THE SAME PERSON WRITING THE CHECK.

THOSE ARE ARE THINGS THAT PLACE THAT THAT IS SOMETHING THAT THEY DO ALREADY.

AND THOSE ARE FROM SMALL CITIES TO SMALL THINGS.

THAT'S ALWAYS, UM, A REALLY EASY ONE TO IMPLEMENT.

YOU CAN GET THE RECEPTIONIST, THERE'S SOMEONE WHO DOESN'T KNOW ACCOUNTING TO OPEN.

SO THAT'S ONE THAT WE ALWAYS WANNA SEE THAT THAT'S NOT BEING, UM, IMPLEMENT IT THAT WE DO.

THE OTHER ONES ARE, YOU KNOW, SOMEONE'S DOING, GETTING ACCESS TO THE, THE BANK AND CAN, YOU KNOW, SIGN A CHECK OR SOMETHING THAT SOMEBODY ELSE IS JUST RECONCILING THOSE BANK RECONCILIATIONS OR REVIEWING IT.

OR THERE'S SOME THINGS IN, WHEN WE HAVE CHAT AT CLIFF THIS YEAR OR WHATNOT, THINGS THAT CLIFF COULD DO, JUST OVERSIGHT.

SO HE LIVES WITH FINANCIALS, HE SEES THOSE THINGS.

AND SO NOT AN ACCOUNTING DEPARTMENT KIND OF OVERSIGHT TO GO ASK, ASK CERTAIN QUESTIONS SO MUCH LIKE,

[00:40:01]

AND HAVING THESE MEETINGS.

BUT THE BOARD, YOU ALL ARE INVOLVED IN THAT CONTROL AS WELL, ASKING THE QUESTION ABOUT THE DECREASE YEAR OVER YEAR.

THOSE KIND OF THINGS ARE CONTROLS.

THEY SEEM LITTLE, BUT THOSE ARE ARE BIG THINGS TO LOOK INTO, SO.

WELL, AWESOME.

ALL RIGHT, WELL IF ALL WE ARE READY TO, UH, YES SIR, MOVE APPROVAL.

TAKE US TO ITEM NINE, WHICH IS DISCUSSION AND, UH, APPROPRIATE ACTION UPON THE PRESENTATION AND RECOMMEND RECOMMENDATION TO REQUEST BOARD OF DIRECTORS APPROVAL OF THE 2024 ACOG BUDGET MODIFICATIONS.

WE GOT A MOTION SECOND AND A SECOND BY JUDGE HAKEY AND TO THE FULL BOARD PART.

THANK YOU CLIFF .

UH, ALL IN FAVOR WITH AYE A AYE.

AYE.

ANY OPPOSED? ALRIGHT, THE MOTION DOES CARRY.

[9. Discussion and appropriate action upon the presentation and recommendation to request Board of Directors approval of the 2024 AACOG Budget Modifications. - Jhoan Torres]

GUESS WHO, GO AHEAD.

JOHN BACK, UH, GOOD MORNING CHAIRMAN, MEMBERS OF THE BOARD.

UM, I'M BRINGING THE PROPOSED BUDGET MODIFICATIONS FOR, UM, THE 2024 BUDGET.

I'LL BREAK THE OVERVIEW.

UM, WE'RE GONNA WALK OVER PROPOSED BUDGET MODIFICATION, THAT PROGRAM WE'LL OVER PROPOSED BUDGET MODIFICATIONS BY ADMIN DEPARTMENT.

AND THEN, UH, I'LL QUESTION YOU MAY HAVE, STARTING WITH A QUICK OVERVIEW OF WHAT WE STARTED THE YEAR, WE STARTED THE YEAR WITH $86.6 MILLION IN REVENUES, 90.1 OR 91 MILLION IN PRO DIRECT EXPENDITURES AND INDIRECT $5.3 MILLION IN RECOVERIES FOR OUR DISTRICT DEPARTMENTS.

AND IT POOL FOR A NET REVENUE EXPENDITURES $942,000.

NOW OVER THE YEAR WE UM, THERE HAVE BEEN AMENDMENTS TO THE BUDGET AND YOU SEE THOSE IN THAT SECOND COLUMN IN THE MIDDLE THERE.

I WON'T WALK OVER ALL OF THOSE, BUT THAT LEAVES OUR CURRENT BUDGET SITTING AT $86.9 MILLION IN TOTAL REVENUES, 91.3 MILLION EXPENDITURES AND INDIRECT $5.3 MILLION IN RECOVERIES ADMIN AND INDIRECT COSTS.

I MEAN IT COSTS FOR A NET REVENUE OVER EXPENDITURES OF $953,000.

SO THAT'S A CURRENT BUDGET.

THIS IS JUST GONNA BE A CONTINUATION OF THAT LAST SLIDE.

SO THE FIRST TWO COLUMNS ARE KIND OF WHAT I JUST WALKED OVER.

THE ONE I WOULD LIKE TO PUT YOUR ATTENTION TO IS THAT THIRD ONE, THE ONE THAT SAYS TWO, ANY 24 PROPOSED BUDGET MODS.

UH, WE ARE PROPOSING A TOTAL REVENUE ADJUST DECREASE OF $617,000 TOTAL DIRECT EXPENDITURES AND INDIRECT DECREASE OF $1.7 MILLION, AN INCREASE TO THE RECOVERIES FOR ADMIN AND IT OF $99,000 FOR A NET REVENUE OR EXPENDITURE OF $1 MILLION.

SO THAT'S THE PROPOSED MODIFICATION AND THE TOTAL BUDGET MOD, THE ADJUSTED BUDGET IS ON THE VERY RIGHT.

SO, UM, YOU GUYS CAN SEE THOSE NUMBERS, BUT THE NUMBER, THE BIG CHANGE IS GOING TO BE THE BOTTOM LINE.

THE NET REVENUE WE EXPENDITURE, WE'RE PROPO, WE'RE PROJECTING THAT THAT ACTUALLY IS GONNA INCREASE TO ABOUT $2 MILLION AS OPPOSED TO THE $1 MILLION THAT WE HAD INITIALLY.

AND I WILL WALK THROUGH HOW WE GOT TO THAT NUMBER.

UM, THE PROPOSED AGENCY BUDGET MOD BY PROGRAM.

UH, THE ONES THAT I WOULD LIKE TO PAY YOUR KNOW YOUR ATTENTION TO IS MILITARY AND VETERAN AFFAIRS WERE DECREASING THOSE EXPENDITURES BY 300 OR INCREASING THE REVENUES BY $312,000, DECREASING EXPENDITURES BY $263,000 FOR A NET INCREASE OF 5 75.

PUBLIC SAFETY WE'RE DECREASING REVENUES UP.

REAL QUICK, JOHN, JUST I WANT TO GIVE CREDIT TO WILL MCKNIGHT AND HIS TEAM TEAM ON THAT, IF YOU CAN SEE, SEE I REALLY APPRECIATE THAT , THAT PROGRAM.

NO SHAME, NO SHAME.

THAT PROGRAM YOU'LL SEE ON THE, WHEN YOU GET TO THE BOTTOM LINE IS OUR LARGEST, UH, REVENUE SOURCE OF, OF POSITIVE REVENUE.

YOU CAN SEE THAT 575,000 AND THAT BOT BUDGET MODIFICATION.

SO IT'S BEEN A, UH, YOU KNOW, THAT PROGRAM IS JUST FOR LACK OF A BETTER TERM, REIGNING MONEY.

SO I TOLD WILLIE KEEPS IT UP.

WE'LL CALL THIS FRONT ENTRANCE MCKNIGHT WAY .

SO, UH, I DO WANT TO GIVE HIM CREDIT FOR THAT.

THANK YOU VERY MUCH.

I'M SORRY TO INTERRUPT JOHN.

NO, OF COURSE, OF COURSE.

WE'RE DOING EXCELLENT.

THEY DESERVE ALL THE PRICE.

UH, MOVING DOWN TO BO SAFETY, WE'RE PROPOSING DECREASING THAT BUDGET BY $13,000 IN DECREASING EXPENDITURES BY 1 45 FOR A NET CHANGE OF 132.

AND I'M JUST KIND OF WALKING OVER THE HIGH LEVEL NOW.

I'M GONNA GO DOWN BY PROGRAM AND THEN WE'RE GONNA WALK THROUGH EXACTLY WHY WE'RE PROPOSING THOSE DURING THE FINANCIAL PRESENTATION.

THAT DID NOTE THAT THERE'S GONNA BE SOME CHANGES TO THE ADMINISTRATIVE DEPARTMENT.

SO THERE'S A CHANGE THERE TO AGENCY MANAGEMENT AND PUBLIC RELATIONS.

THAT NET CHANGE IS GOING TO BE 147,000.

THE NET CHANGE IS TOTAL IS ZERO ONCE YOU AGGREGATE THEM TOGETHER.

BUT WE'RE JUST MOVING THOSE FUNDS AROUND DUE TO THE REORGANIZATION.

AND LAST BUT NOT LEAST, WE HAVE THE GENERAL FUND.

WE HAVE A INCREASE TO REVENUE, SO 4 51 AND EXPENDITURES OF 49 FOR A NET CHANGE OF $402,000.

[00:45:01]

AND THAT IS GOING TO BE A FUND BALANCE TRANSFER THAT WE'RE DOING.

UH, AND SO THAT NET CHANGE BOTTOM RIGHT CORNER IS GONNA BE $1.1 MILLION.

BEFORE WE GET TO DUBAI PROGRAM, I DID WANNA WALK, UH, THROUGH THE BUDGET MODIFICATION PRO, PRO, UH, PROCESS.

I KNOW IT'S BEEN A WHOLE YEAR.

UM, SO JUST TO GIVE YOU A QUICK HEADS UP AND I'M APOLOGIZE IN ADVANCE FOR THE TEXT PAYING SO SMALL.

SO WE START WITH THE ORIGINAL BUDGET APPROVAL.

IT OCCURS IN OCTOBER OF THE PRIOR YEAR.

UH, THE BUDGETS FOR SEPTEMBER THROUGH DECEMBER ARE FORECASTED AT THAT TIME.

SO, UH, THEN WE MOVED ON TO THE BUDGET AMENDMENTS, UM, APPROVED WITH BOARD OF DIRECTOR APPROVAL DURING THE COURSE OF THE YEAR.

WE TALKED ABOUT THAT EARLIER.

UH, THEN WE GET TO AROUND A COUPLE OF MONTHS AGO WHERE WE HAVE OUR INITIAL BUDGET MODIFICATION MEETINGS, RIGHT? SO WE REVIEW POSSIBLE ADJUSTMENTS WITH PROGRAMS, KIND OF SEE WHERE THEY'RE GONNA FALL SHORT, WHERE WE MAY NEED TO PUSH, PULL SOME OF THOSE TO NEXT YEAR, THINGS OF THAT NATURE.

SO THEN WHEN WE GET TO THE ACTUAL BUDGET MODIFICATIONS, WE REVIEW THE PRIOR YEAR, SEPTEMBER THROUGH DECEMBER, ACTUALS AGAINST THE FORECAST THAT WE DID DURING THE ORIGINAL BUDGET APPROVAL PROCESS.

AND THEN WE ADJUST THE BUDGET BUDGET TO ALIGN WITH THOSE ACTUALS IF NECESSARY.

SO IF WE PROJECTED THAT YOU WERE GONNA SPEND A MILLION DOLLARS IN THAT LAST QUARTER AND YOU ACTUALLY SPEND ENDED UP SPENDING 600,000, WE'RE GONNA PROBABLY PUT THAT IN THE 2024 BUDGET.

SO WE'RE MAKING THOSE CHANGES.

AND THEN WE'RE GOING TO LOOK AT THE ADJUSTMENTS THAT WE DISCUSSED WITH PROGRAM TO AGGREGATE EVERYTHING INTO A BUDGET MODIFICATION.

AND THEN THAT BRINGS US TO OUR LAST STEP, WHICH IS, UH, EXECUTIVE DIRECTOR REVIEW AND THEN BOARD OF DIRECTOR REVIEW AND APPROVAL.

UH, I DID WANNA HIGHLIGHT THIS SLIDE RIGHT HERE BECAUSE I'M GOING TO BE SAYING THIS A LOT.

SO WHENEVER WE DO DID THAT REVIEW AGAINST THE FORECAST AGAINST THE ACTUALS, WE WILL ADJUST THE BUDGET TO ALIGN WITH ACTUALS IF NECESSARY.

SO YOU'RE GOING TO SEE THAT VERBIAGE A LOT IN THE UPCOMING SLIDES AND THIS IS WHY I WANTED TO HIGHLIGHT THAT.

UH, MOVING OVER TO PROGRAMS, UH, WE'RE GONNA START WITH ALAMO AND BEAR AGING.

SO FOR ALAMO, WE ARE PROPOSING A $252,000 DECREASE TO REVENUES AND EXPENDITURES.

WHEN WE DID THAT FORECAST FOR IN 2024 IN THE INITIAL BUDGET, WE PROJECTED, UM, CARRY FORWARD FROM HHSC AS WELL AS TO RECEIVE IT.

AND WHEN THE FINAL BUDGET FIGURES ENDED AND THE DUST SETTLED, THAT NUMBER ENDED UP BEING LOWER THAN PROJECTED.

SO WE ARE GONNA GO AHEAD AND PROPOSE A BUDGET AMENDMENT FOR THAT.

FOR BEAR AGING, FOR OUR TOTAL, OUR NET CHANGES IS GONNA BE A $48,000 INCREASE IN REVENUES AND EXPENDITURES.

WALKING THROUGH ALL THOSE, OUR FUND 2090, WHICH IS OUR CNCS FUND, UH, WE'RE DOING A BUDGET ALIGNMENT TO ALIGN, UH, BUDGET ADJUSTMENT TO ALIGN WITH ACTUALS, UH, FOR 2091.

THAT FUND IS GONNA BE DECREASED.

OUR NCOA GRANT WAS NOT RENEWED AS EXPECTED, SO WE'RE GONNA GO AHEAD AND BACK THAT OUT OF THE BUDGET.

AND OTHER IS REALLY OUR HHSC FUNDING, IT'S JUST IN VARIOUS FUNDS.

AND THAT IS, UH, ADDITIONAL FUNDING FROM HHSC AND FY 24.

SO IT WAS THE SAME PROCESS THAT WE DID FOR ALAMO AGING FOR THE 2 52.

IT JUST HAPPENED TO GO THE OTHER WAY.

MOVING OVER TO OUR, UH, THE PROPOSED CHANGE, THERE IS AN INCREASE OF $452,000 INCREASE TO REVENUES AND EXPENDITURES.

I DID MENTION THE PURCHASE OF THE BUSES IN FY 24 EARLIER DURING THE FINANCIAL PRESENTATION.

THIS IS THE BUDGET AMENDMENT TO ADJUST FOR THAT AND FOR OUR VEARY AND VETERAN AFFAIRS PROGRAMS. UH, PROPOSED INCREASE, UH, IN REVENUES OF THREE 12, PROPOSED DECREASE OF EXPENDITURES BY 2 63 FOR A NET CHANGE OF 5 75.

THE FIRST THERE IS OUR 12 12 0 2 FUND.

OUR ME R BUDGET IS UPDATED TO ALIGN WITH A GRANT SPENDING AND IT WAS EXTENDED THROUGH JANUARY, 2025.

SO WE'RE GONNA GO AHEAD AND ADJUST THAT 1801 DAC BUDGET REDUCED TO ALIGN WITH GRANT SPENDING.

SO WE ACTUALLY SPENT A LITTLE BIT MORE THAN EXPECTED IN THE LAST QUARTER OF 2023.

SO WE'RE BRINGING IT DOWN THIS YEAR BECAUSE WE DON'T HAVE QUITE AS MUCH AS WE EXPECTED TO HAVE.

AND FOR 46 0 1 IT'S GOING TO BE OUR VE VETERANS DIRECTED.

UH, NAILING THAT BUDGET DOWN HAS PROVEN TO BE DIFFICULT JUST DUE TO THE MIX IN.

BUT I THINK THIS IS, UM, A GOOD CHANGE.

UH, SO WE'RE GONNA GO AHEAD AND ADJUST THAT JUST TO GET IT CLOSER.

JOHN, HOW MUCH DID THAT? 52,000.

HOW MANY BUSES DID THAT BUY? THREE, FOUR, I THINK THAT BE.

I DON'T HAVE SEAN HERE.

MOVING DOWN TO OUR IDD PROGRAM OF THE NET OR THE NET CHANGES THAT WE'RE TALKING ABOUT ARE DECREASE OF REVENUE OF 5 34, DECREASE OF EXPENDITURES OF 5 36 FOR NEXT $2,000.

UH, STARTING WITH OUR 2012 FUND, THAT'S OUR TABLET PILOT GRANT, UH, WAS NOT RENEWED.

SO THAT WILL BE REMOVED FROM THE BUDGET FOR 2024.

2134 IS GONNA BE ARPA.

UH, THAT BUDGET IS REDUCED TO ALIGN WITH GRANT

[00:50:01]

SPENDING AND OTHER IS, UH, IN DECREASE OF 2 59, DECREASE OF 2 61 FOR EXPENDITURES FOR AN NET CHANGE OF TWO HHSC.

AND TCDD BUDGETS WERE ADJUSTED, UM, TO ALIGN WITH GRANT SPENDING MOVING OVER TO NATURAL RESOURCES.

THE NET CHANGE THERE IS GOING TO BE A DECREASE OF REVENUES OF 1 21 AND EXPENDITURES FOR THE SAME AMOUNT.

1622 UH, ADDITIONAL GRANT WAS RECEIVED FOR AIR QUALITY, BUT THAT IS GOING TO BE NETTED UP AGAINST OUR BUDGET.

THAT WAS REDUCED TO ALIGNMENT WITH GRANT SPENDING.

UM, AND HONESTLY, A LOT OF THESE DECREASES CREDIT TO PROGRAM.

THEY DID A GREAT JOB IN THE LAST QUARTER OF LAST YEAR.

AND SO NOW WE'RE HAVING TO BRING IT DOWN THIS YEAR, UH, FOR 44 0 1 CLEAN CITIES BUDGET REDUCED TO ALIGN WITH GRANT SPENDING AND OTHER CCO AND MPO BUDGETS ARE ADJUSTED AS WELL BECAUSE OF THE GRANT SPENDING.

MOVING OVER TO PUBLIC SAFETY, UH, WE'RE PROPOSING A REDUCED REVENUE OF $13,000, REDUCED EXPENDITURES OF 145 FOR A NET CHANGE OR A NET REVENUE OVER EXPENDITURE CHANGE OF 132,000.

UH, THE PROPOSED ADJUSTMENT IS DUE TO REDUCING ACADEMY CONTRACTUAL BUDGET DUE TO LESS CADETS ATTENDING CLASSES.

NOW THAT IS, UH, SOMETHING THAT WE ARE ADDRESSING.

THAT BEING SAID, IT IS THE FIRST YEAR OF THE BIENNIUM.

SO THERE, EVEN THOUGH WE'RE DECREASING THE 2024 BUDGET, THERE IS STILL TIME TO REPURPOSE THOSE FUNDS AND MOVE THEM AROUND OVER THE COURSE OF THE BIENNIUM.

UH, MOVING OVER TO WEATHERIZATION, A PROPOSED REVENUE AND EXPENDITURE CHANGE OF $960,000 DECREASE, UH, STARTING WITH 1423.

THAT IS DUE TO THE B-O-D-O-E-B-I-O CONTRACT EXTENDED THROUGH JUNE, 2026.

SO THAT IS A $601,000 DECREASE TO THE BUDGET.

THAT ONE THING I DO WANNA NOTE, IT'S NOT LOST FUNDS.

WE EX WE HAVE A LOT OF FUNDING AND WE HAD IT ON THE 2024 BUDGET, BUT NOW THAT THEY'VE GIVEN US A LOT MORE TIME TO SPEND IT, WE ARE PROBABLY GONNA HAVE A LOT MORE IN THE 2025 AND 2026 BUDGET.

SO WE'RE JUST MOVING THAT DOWN THE ROAD SO WE CAN SPEND THE FUNDS CORRECTLY.

UH, MOVING DOWN TO 1429 LIHEAP, UH, DECREASE OF REVENUES OF 1 56 AND EXPENDITURES FOR THE SAME AMOUNT.

LIHEAP WAS AWARDED LESS FUNDING FROM TDHC AND FY 24.

SO WE ARE BRINGING THAT DOWN.

AND THEN FOR OTHER REVENUE AND EXPENDITURE DECREASE OF $203,000.

AND THAT IS DUE TO THE HOMES FOR TEXAS HEROES GRANT NOT RENEWED FOR FY 25.

UH, SO WE ARE DECREASING THAT.

AND FOR FY 24, WE DO HAVE AN EXTENSION THROUGH DECEMBER, 2024.

MOVING OVER TO OUR ADMIN AND DIRECT AND GENERAL FUND BUDGETS.

UM, AGENCY MANAGEMENT WE ARE MOVING ARE INCREASING THOSE EXPENDITURES BY $147,000.

AND WE ARE DE PROPOSING A DECREASE TO PUBLIC RELATIONS FOR THE SAME AMOUNT.

AND THAT IS DUE TO THE REORGANIZATION THAT OCCURRED EARLIER IN THE YEAR.

AND LAST BUT NOT LEAST, WE HAVE THE GENERAL FUND, UM, THAT IS GONNA A PROPOSED $451,000 INCREASE TO REVENUES, 4,900 THOU $49,000 INCREASE TO EXPENDITURES FOR A NET OF $402,000.

WE ARE DOING A, WE ARE PROPOSING A FUND BALANCE TRANSFER FROM SPECIAL REVENUE.

UH, SO THE GRANT FUNDS TO THE GENERAL FUND TO COVER SOME OF THOSE EXPENDITURES THAT FOR OVERHEAD.

UM, AT THIS TIME, I'D BE HAPPY TO ANSWER ANY QUESTIONS, UH, THAT THE BOARD MAY HAVE.

AND WE DO REQUEST APPROVAL OF BUDGET MODIFICATIONS TO THE 2024 BUDGET.

ALL RIGHT.

THANK YOU AGAIN, THANK YOU FOR THE EXPLANATION AND THE CHART THAT YOU HAD WITH THE BO A BUDGET MODIFICATION PROCESS.

I APPRECIATE THAT.

UH, ANY QUESTIONS OR COMMENTS? BOARD MEMBERS? OKAY, SEEING THERE, NONE, I'D LIKE TO SEE IF THERE IS A MOTION TO GO TO THE FULL BOARD, THE APPROPRIATE ACTION TO ACCEPT THE APPROVAL OF THE 2024 ACOG BUDGET MODIFICATIONS.

WE HAVE A MOTION BY JUDGE EVANS.

SECOND.

SECOND BY MR. OCKER.

AYE, ANY QUESTIONS OR DISCUSSION? ALL IN FAVOR WITH AYE.

AYE.

ANY OPPOSED? THE MOTION DOES CARRY.

THANK YOU SO MUCH.

THANK YOU AGAIN, VERY MUCH.

SO LET ME ASK YOU ONE YES SIR.

QUESTION.

THIS IS, THIS IS IMPORTANT WHAT WE JUST DID, BUT CLIFF, DO YOU THINK, ARE YOU SEEING A SLOWDOWN IN WASHINGTON REF REFERENCE TO FEDERAL DISTRIBUTION OF MONIES? WHEN YOU SAY A SLOW DOWN, ARE YOU TALKING ABOUT A SLOWDOWN OF THE FUNDING STREAM AS FAR AS HOW THEY DISTRIBUTED? OR ARE YOU TALKING ABOUT UH, ADDITIONAL MONIES? BOTH.

I THINK, YEAH, WE'RE, WE'VE SEEN, LIKE FOR INSTANCE, WHAT IS IT, THE ARPA FUNDS HAVE DRIED UP, SO THOSE ARE GONE.

AND SO WE ARE SEEING A SLOW DOWN IN THAT RESPECT.

BUT AS FAR AS THE CONTINUATION OF FUNDING OF THINGS START PAYING THAT ARE, YOU KNOW, BUDGETED FOR AND EXPECTED, I THINK

[00:55:01]

THAT'S STEADY.

BUT LIKE I SAY, THEY ARE THE, YOU KNOW, THE VIL MONEY IS GONNA BE COMING, BUT IT'S IN TRANCHES INFRASTRUCTURE, MONEY IS IN TRANCHES THAT IS BEING RELEASED AT VARIOUS TIMES.

BUT WE ARE SEEING SOME OF THE PROGRAMS, YOU KNOW, ALL OF THAT COVID FUNDING DRIP IS DRIED UP.

ALL OF THE, THE ARPA STUFF IS DRIED UP.

OKAY, THANK YOU.

WE'RE HAVING TO MAKE SOME OF THOSE ADJUSTMENTS.

NO, I, I THINK THAT'S A GOOD QUESTION.

'CAUSE I HAVE, WHEN I SEE THAT THE PROGRAM WAS NOT RENEWED OR THE GRANT FUNDING IS NO LONGER AVAILABLE, HOW DO I SEE HOW WE'RE MAKING THE ADJUSTMENTS, BUT IS THAT SOMETHING THAT WE NEED TO BE CONCERNED ABOUT AS A BOARD WITH OUR BUDGET GOING FORWARD? AND JUST PUTTING THAT QUESTION OUT.

THERE NEED TO BE ANSWERED NOW.

BUT I, BECAUSE I JUST AM TRYING TO UNDERSTAND ALL OF THIS.

'CAUSE WHEN THE MONEY'S NOT THERE, , I THINK IT'S SO FLUID IN DC THAT, THAT YOU, IT'S SO HARD TO FORECAST IT WHENEVER WE'RE PUTTING OUR BUDGET TOGETHER THAT, YOU KNOW, YOU, YOU CAN PUT IT IN THERE AND, AND, AND HOPE THAT IT, THAT IT FOLLOWS THROUGH.

BUT YEAH, AND WE ARE FIGHTING OF COURSE WITH THE INFRASTRUCTURE MONEY, NEW OPPORTUNITIES AND I KNOW THAT'S WHAT YES.

YOU KNOW, HEARD ME TALK, I WANT TO, YOU KNOW, OUR EDAD AND YOU'VE HEARD ME HARP ON THIS CONSISTENTLY IS THAT, YOU KNOW, ACOG REALLY HAS ONE GRANT WRITER.

UH, AND I MEAN WE HAVE SEVERAL PEOPLE THAT ARE SKILLED GRANT WRITERS THAT WORK FOR THEIR PROGRAMS, BUT WE REALLY HAVE ONE ECONOMIC DEVELOPMENT PERSON THAT'S REALLY WOEFULLY UNDERSTAFFED FOR A REGION OF OUR SIZE.

AND I REALLY WANT TO TAKE AN OPPORTUNITY WITH ALL THIS MONEY THAT'S COMING DOWN TO DEVELOP THAT DEPARTMENT.

AND THAT OF COURSE WOULD GIVE US INDIRECT REVENUE FOR THE AGENCY AS WELL AS SERVE AS, UH, YOU KNOW, A, UH, UH, BENEFIT FOR THE ENTIRE REGION TO GET SOME OF THESE INFRASTRUCTURE DOLLARS OUT.

SO THAT'S ONE OF THE AREAS THAT I'M FOCUSING ON AND TRY TO BUILD UP, UH, AGENCY REVENUE.

UH, ANOTHER THING THAT, UM, I HAVE TO GO BACK TO, WILL I, AND I MEANT TO MENTION IT DURING HIS, DURING THE BUDGET MODIFICATION PROCESS, UM, WILL AND HIS TEAM, DEIDRE AND JACOB ARE WORKING ON A PROCESS TO, UH, STREAMLINE AND BRING IN HOUSE THE IN-HOUSE, UH, AND BRING IN HOUSE THE BILLING FOR THAT PROGRAM.

CURRENTLY WE USE AN OUTSIDE VENDOR TO THE TUNE OF HOW MUCH WILL A YEAR? OH GOSH.

WELL OVER, WELL OVER A MILLION, 31 MILLION.

OH, NO, NO, NO.

BUT HOW MUCH DO WE PAY THE VENDOR? PROBABLY ABOUT $15 MILLION.

YEAH.

WE'RE PAYING OUT IN REGARDS TO THEM, IT'S HALF OF IT DISTRICT FOCUS, BUT I MEAN, HOW MUCH ARE WE PAYING THEM FOR THEIR SERVICES AND THEIR BILLING? UM, PROBABLY ABOUT, FOR OVER A 12 MONTH PERIOD, PROBABLY ABOUT $1.2 MILLION.

RIGHT.

WOW.

IT'S ABOUT A MILLION MILLION TOO THAT WE'RE PAYING IN.

WOW.

IN THAT VENDOR.

IF WE CAN BRING THAT INTO ACCOUNTING AND INCORPORATE ALL OF THAT BUILDING, WE SUSPECT THAT WE'LL SEE A FEW HUNDRED THOUSAND OF THAT DROP TO OUR BOTTOM LINE.

SO I'M LOOKING, WE'RE LOOKING FOR DIFFERENT REVENUE SOURCES AND RIGHT NOW THAT THAT CONTRACT FOR THAT BILLING CONTRACT IS UP IN NOVEMBER.

SO WE'RE GONNA BE COMING TO YOU WITH THAT AS WE MOVE FORWARD.

BUT RIGHT NOW WE'RE DOING THE IMPLEMENTATION.

WE'RE TRYING TO WORK WITH OUR BILLER, WITH OUR, UM, PAYROLL SERVICE THING TO LOOK AT SOFTWARE TO DO ALL OF THAT.

AND THE POINT BEING, HOPEFULLY WE'LL DRIVE, YOU KNOW, LET'S JUST BE CONSERVATIVE AND SAY A QUARTER OF A MILLION DOLLARS AND MAYBE HALF A MILLION DOLLARS A YEAR TO THE AGENCY, UH, THROUGH THAT PROGRAM JUST BY TAKING THE BILLING FOR IT IN HOUSE.

SO WE'RE WORKING ON IT ON SEVERAL AVENUES TO TRY TO, LET'S JUST SAY BE RESPONSIVE TO THAT FLUID SITUATION YOU'RE TALKING ABOUT, JUDGE.

WELL, THANK YOU AND WE APPRECIATE YOUR DUE DILIGENCE AND LOOKING FOR OPPORTUNITIES WHERE WE CAN, UM, SAVE OR MAKE ADJUSTMENTS.

UH, WITH THAT THEN WE'LL GO TO ITEM 10,

[10. Items to be placed on the Board of Directors meeting agenda from the Executive Committee.]

WHICH ARE ITEMS TO BE PLACED ON THE BOARD OF DIRECTORS MEETING AGENDA FROM THE EXECUTIVE COMMITTEE.

BUT SUSIE, YOU HAVE ALL OF THOSE, RIGHT? YES, MA'AM.

THE ITEMS, SPORTS OR NONE.

DID ANYONE HAVE ANY OTHER ITEMS THAT THEY WANTED PLACED ON THE, UH, AGENDA? ALRIGHT, WELL, WE'LL MOVE TO ITEM

[11. Items to be placed on the agenda for the next Executive Committee meeting.]

11.

ITEMS TO BE PLACED ON THE AGENDA FOR THE NEXT EXECUTIVE COMMITTEE.

MEETING.

DO WE? I DON'T KNOW OF ANY, BUT DO YOU HAVE IT? NOT I KNOW OF.

AND THAT WILL BE IN THE NEXT MEETING WILL BE WHEN? SUSIE? OCTOBER 16TH.

OCTOBER 16TH IS OUR NEXT.

WE'LL PROBABLY COME UP WITH SOME ITEMS AND, UM, JUST A ROUTINE.