Apr 16, 2025 Executive Committee

I APPRECIATE THAT

[00:00:01]

WE'RE GOOD.

WE GOT IT.

WE GOT IT.

WE GOT IT.

THANK YOU.

ALL RIGHT, EVERYBODY.

[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.]

OKAY, WELCOME EVERYBODY.

TODAY IS THE WHAT? 16TH AFTER OUR FAVORITE DAY.

THE 15TH OF APRIL.

ALL OF OUR FAVORITE DAY, UH, OF APRIL.

WE ARE HERE FOR OUR, UH, ALAMO AREA COUNCIL OF GOVERNMENT EXECUTIVE COMMITTEE MEETING.

UH, IT IS JUST LITTLE AFTER 10 O'CLOCK.

SUSIE, CAN YOU GIVE US A ROLL CALL, PLEASE, MA'AM? YES, SIR.

JUDGE ? YES, MA'AM.

MAYOR DENNIS IS EXCUSED.

COMMISSIONER CLAY FLOS.

PRESENT JUDGE EVANS.

HERE.

COUNCILWOMAN ROCHA GARCIA RO RODRIGUEZ FOR HER.

MS. ? HERE.

JUDGE KELLY.

HERE.

MS. LEWIS? EXCUSE? MAYOR SCHRODER IS EXCUSED.

I DON'T SEE JUDGE TEAL.

JUDGE.

THAT'S WHITEMAN.

SCOTT AIKEN.

COMMISSIONER AIKEN.

JUDGE WHITTEN.

OKAY.

WE DO HAVE A QUORUM.

OKAY.

I HAVE NUMBER THREE PUBLIC COMMENTS.

DO WE HAVE ANY PUBLIC COMMENTS AT THAT TIME? THERE ARE NO PUBLIC COMMENTS, MR. CHAIRMAN.

ALL RIGHT.

ITEM HAVE

[4. Consent Agenda]

I A CONSIDERED ACT ON THE RECOMMENDATION TO APPROVE TO JANUARY 15TH, 2025.

EXECUTIVE COMMITTEE MEETING.

MINUTES.

DO WE HAVE A MOTION? I, UH, MOTION.

SECOND.

SECOND.

MOTION BY JUDGE JONES, SECOND BY OUR JUDGE.

THERE ALL VOTE IN FAVOR.

RAISE YOUR RIGHT HAND MINUTES.

OKAY.

THOSE SIGNED ITEM NUMBER

[5. Discussion and appropriate action on the recommendation to approve the 1st Quarter 2025 financial report - Julio Elizondo. A. Dashboard B. Balance Sheet C. Revenue and Expenditures D. Administrative Budgets E. Quarterly Investment Report]

FINANCIAL REPORT.

JULIO.

GOOD MORNING.

OH, MR. SA.

OKAY.

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

MY NAME IS JULIO LIZO.

I'M YOUR CHIEF FINANCIAL OFFICER, AND TODAY I'M GONNA GIVE YOU THE FIRST QUARTER UPDATE ON THE FINANCIAL STATEMENTS.

WE'LL COVER IN THIS, UH, PRESENTATION, OUR FINANCIAL DASHBOARD, AS WELL AS OUR FINANCIAL STATEMENTS, BOTH BALANCE SHEETS AND, UH, STATEMENT OF REVENUES AND EXPENDITURES AND EVERYTHING IN BETWEEN.

HERE WE HAVE OUR FINANCIAL DASHBOARD AT THE END OF MARCH.

YOU CAN SEE AT THE END OF, UH, THE FIRST QUARTER, WE'RE AT ABOUT 23% SPENT.

UH, AND YOU'D LIKE TO BE AT 25%, UH, THEORETICALLY, UH, OR TECHNICALLY, BUT, UH, THERE ARE, THERE WERE SOME REASONS.

UM, UH, THE, THE REASONS I'LL GET TO IN THE, IN THE COMING SLIDES ARE OF THE DIFFERENT PROGRAMS WHO OVERSPENT AND WHO CAME UNDER THEIR BUDGET.

UH, WE'LL COVER THAT IN A FEW MINUTES.

CASH AND INVESTMENTS, WE'RE CURRENTLY AT $8.8 MILLION AT THE END OF MARCH.

GREAT FINANCIAL POSITION TO BE IN ACCOUNTS RECEIVABLE AT, UH, $10.5 MILLION.

IT'S, UH, RIGHT AROUND THE SAME WHERE WE'VE BEEN FOR THE LAST SEVERAL YEARS, AND OVER 90 IS CURRENTLY AT 14%.

AND AGAIN, I'LL COVER THAT IN THE SLIDES TO COME.

OUR COMBINED BALANCE SHEET AT THE END OF MARCH, WE ARE AT $48.4 MILLION.

IT'S UP A FEW HUNDRED THOUSAND FROM WHERE WE WERE A YEAR AGO.

TODAY WE ARE, UH, UH, JOHN DID ENTER A, A COUPLE YEAR IN ENTRIES FOR, UM, THAT WILL AFFECT THESE FINANCIAL STATEMENTS.

UH, AND JUST TO GIVE YOU ALL AN UPDATE, WE ARE CURRENTLY BEING, UH, OUR EXTERNAL AUDITORS ARE NOW AUDITING US.

SO WE DID HAVE SOME YEAREND ENTRIES THAT MADE THEIR WAY IN.

SO AT THE END OF APRIL, YOU'LL SEE A DIFFERENT NUMBER ON THE TOTAL ASSETS.

IT WILL INCREASE, UH, I BELIEVE A COUPLE MILLION.

UH, AND AT THE END OF MARCH, OUR REVENUES OVER EXPENDITURES ARE $1.3 MILLION.

UH, IT'S, IT'S QUITE A DIFFERENCE FROM WHERE WE WERE A YEAR AGO TODAY AS WELL.

HERE WE HAVE A SUMMARY OF OUR FUND BALANCE, BOTH UNRESTRICTED AND RESTRICTED.

UH, AGAIN, AS I MENTIONED AT THE LAST, UH, MEETING, WE ARE CURRENTLY AT $12 MILLION IN UNRESTRICTED GREAT POSITION TO BE IN.

THE BIGGEST REASON FOR THAT IS MILITARY AND VETERANS AFFAIRS, SPECIFICALLY THE VETERANS DIRECTED PROGRAM.

UH, YOU CAN SEE THEY'VE INCREASED THEIR FUND BALANCE ABOUT, UH, $2 MILLION FROM WHERE THEY WERE A YEAR AGO TODAY.

AND THEN ART AS WELL.

TRANSPORTATION HAS INCREASED A, A FEW HUNDRED THOUSAND AS WELL.

DON'T MIND WILLED CLOSING.

I MIND YOU GO QUICK.

AS WE GO INTO OUR MILITARY AND VETERANS AFFAIRS PROGRAM WITH THE, UH, VETERANS DIRECTOR OF CARE IS THE LARGEST IN THE NATION, SO VERY PROUD OF IT, AND IT'S A VERY SUCCESSFUL PROGRAM, AND IT HAPPENS TO ALSO BE VERY, VERY BENEFICIAL FOR ACOG IN OUR BOTTOM LINE.

VERY MUCH SO.

VERY MUCH SO.

NO, THANK YOU, SIR.

CASH INVESTMENTS, AS I MENTIONED A LITTLE WHILE AGO, WE'RE AT 8.7, UH, GR, UH, PRETTY GOOD MIX OF, OF CASH ON HAND IN OUR MONEY MARKETS AS WELL AS OUR CDS.

AND, UH, HERE YOU HAVE KIND OF THE DETAIL OF THAT, UH, THE INVESTMENT SUMMARY BROUGHT TO YOU BY THE PUBLIC FUNDS INVESTMENT ACT.

YOU CAN SEE WE HA WE'RE TECH POOL AND LONE STAR ARE PAYING US ABOVE 4.3%.

UH, SOME GOOD RATES, UH, STILL CURRENTLY.

AND, UH, CDS, WE'VE GOT 'EM LOCKED IN WITH SHIRTS, WHO

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UH, AND THE BIGGEST, BIGGEST TAKEAWAY FROM THIS, AS YOU CAN SEE DURING THE FIRST QUARTER, WE'VE ALREADY EARNED ALMOST A HUNDRED THOUSAND IN INTEREST.

SO GREAT POSITION TO BE IN ACCOUNTS RECEIVABLE.

AS I MENTIONED EARLIER, OUR OPEN AR AT THE END OF MARCH IS $10.5 MILLION.

BIGGEST OPEN CUSTOMER WE HAVE IS, UH, VETERANS, UH, VA, AND THAT'S CURRENT.

THERE IS NOT, UH, THERE'S NO WORRY THERE.

THE OTHER ONE IS TXDOT AT 1.6.

350 OF THAT IS OVER 90.

AND, UH, THE REASON FOR THIS IS BECAUSE ART DID ORDER THREE BUSES AT THE END OF LAST YEAR UNDER THEIR 53 39 GRANTS.

THOSE BUSES DID BECOME AVAILABLE MUCH EARLIER THAN THEY, THAN WAS EXPECTED.

AND IN ORDER FOR THEM TO, TO UTILIZE THE VEHICLES IMMEDIATELY, THEY NEEDED TO REQUEST AN AMENDMENT TO THEIR 53 11 GRANT.

UH, SO THE AMENDMENT HAS BEEN SUBMITTED.

WE'RE CURRENTLY WAITING TXDOT, UH, APPROVAL ON THAT, AND WE DO EXPECT THAT TO BE CLEARED BY THE END OF APRIL.

SO THEY'RE PRETTY FAST IN TERMS OF, UH, TURNING AROUND AND MAKING PAYMENT ON THAT BEAR.

AGING CURRENTLY AT $1.6 MILLION.

THE OVER 90 IS JUST A PAYMENT THAT WE HAVE TO SUBMIT BACK TO HHS.

UM, AND THEN, UH, CURRENT ON THE NEXT BIGGEST CUSTOMERS, UH, UH, FAIRLY NEW GRANT WITH PUBLIC SAFETY.

IT'S THE COPS DOGA GRANTS.

UM, BUT, UH, OTHER THAN THAT, AR LOOKS PRETTY, PRETTY NORMAL.

AS, AS USUAL STATEMENT IS REVENUES AND EXPENDITURES, $1.3 MILLION REVENUES OVER EXPENDITURES FOR THE YEAR.

AND WE'LL COVER THOSE VARIANCES, UH, FOR PROGRAM NOW.

SO, ALAMO AGING IS CURRENTLY 80,000 BELOW BUDGET, UH, PROGRAM DID HAVE A MEETING WITH HHS LAST WEEK, AND WE WORE, UM, WE, IT WAS EXPLAINED TO US THAT THERE WILL BE ONLY FUNDING US 75% OF THE TOTAL BUDGET FOR THE GRANT YEAR.

SO PROGRAM IS AWAITING SOME VALIDATION FROM HHS TO DETERMINE HOW MUCH OF THE CARRY FORWARD THAT THEY BROUGHT IN FROM LAST GRANT YEAR.

UH, HOW MUCH OF THAT FUNDING WILL BE ALLOCATED BACK TO BOTH THE ALAMO AND BEAR PROGRAMS? THEY WILL NEED A BUDGET MODIFICATION TO CORRECT THIS, UH, FOR THE GRANT YEAR OR FOR THE FISCAL YEAR.

AND AGAIN, THE SAME REASON ON THE BEAR SIDE, 391,000 BELOW BUDGET, 75% OF THAT BUDGET IS ONLY BEING AWARDED, UH, TO THEM FROM THE, UH, FROM HHS.

ART IS CURRENTLY 271,000 ABOVE BUDGET.

THE, THE BULK OF THAT IS DUE TO A COUPLE FUNDING STREAMS. UH, THE SERVICE EXPANSION PROGRAM IS NOT INCLUDED IN THE FY 25 BUDGET.

UH, WE WILL NEED A BUDGET MODIFICATION TO INCREASE THAT BUDGET, UH, TO ACCOUNT FOR THAT.

AND MILITARY VETERANS AFFAIRS, AS I MENTIONED EARLIER, THEY'RE 575,000 ABOVE BUDGET.

UH, THIS IS DUE TO A, THE WAY THEY HAD THEIR CASE ME, UM, WHEN THEY'RE PLANNING, THEIR BUDGET HAS CHANGED, AND SO THAT'S CAUSED A VARIANCE, UH, WITH WHAT'S ACTUALLY HAPPENING.

UM, SO THEY WILL NEED A BUDGET MODIFICATION TO INCREASE THEIR REVENUE TO ACCOUNT FOR THOSE CHANGES.

IDD IS CURRENTLY AT, AT $130,000 DEFICIT FOR THE YEAR.

UM, THEY HAVE HAD SEVERAL, UH, ABOUT 77,000 IN MEDICAID WRITE-OFFS.

YEAR TO DATE.

THEY ARE WAITING, UM, SOME PRIOR AUTHORIZATIONS TO CLEAR FROM HHS.

AS I MENTIONED IN THE PREVIOUS MEETINGS, YOU KNOW THAT THERE'S A SYSTEMIC ISSUE AT THE STATE LEVEL.

UM, THEY'RE CLEARING THAT OUT RIGHT NOW AND WORKING THAT OUT WITH PROGRAM.

BUT THEY, WHAT WE'VE HEARD SO FAR IS THEY WILL BE SENDING US ABOUT $200,000 BACK, WHICH WILL HIT THAT BOTTOM LINE.

SO IT WILL NET WITH THE DEFICIT RESULTING IN THE SURPLUS FOR THE YEAR.

UH, IN APRIL, WEATHERIZATION IS CURRENTLY BELOW BUDGET, 221,000.

AND, UH, THEY WERE WAITING ON, UH, WORD FROM T-D-H-C-A, UH, FOR BOTH D-O-E-B-I-L AND LIHEAP.

UM, BUT THEY RECEIVED WORD, UH, JUST A COUPLE WEEKS BACK THAT THOSE, UM, THOSE GRANTS HAVE BEEN CLEARED.

AND SO THEY CAN EXPEND FUNDS ON THEM AGAIN.

UH, THEY DO HAVE A COUPLE BIG PROJECTS IN THE PIPELINE, SO THEY DON'T EXPECT ANY ISSUE WITH REGARDS TO SPENDING DOWN THOSE FUNDS.

UH, SO THEY WILL BE ON TARGETS.

CAN I CUT IN THERE REAL QUICK? MM-HMM .

LEO? YES, SIR.

A LOT OF THIS STEMS FROM, IF YOU REMEMBER BACK SEVERAL WEEKS AGO, THE OFFICE OF MANAGEMENT BUDGET PUT IN THAT FREEZE ORDER THAT BASICALLY FROZE ALL FEDERAL, FEDERAL FUNDING ACROSS THE, THE UNITED STATES.

UH, AND THEN SOLELY STARTED BACKTRACKING ON WHAT THEY WANTED TO DO.

UM, BUT WE DIDN'T EVER, WE STILL HAD FREEZE ORDERS FROM VARIOUS PROGRAMS COME DOWN, AND WEATHERIZATION WOULD BE ONE OF 'EM.

AND THEN WHEN YOU WOULD CALL, YOU WOULDN'T BE ABLE TO GET A CLEAR ANSWER OF WHETHER OR NOT THE FUNDING WAS RELEASED OR NOT.

AND EVEN TODAY, ALL WE HAVE ARE VERBAL ASSURANCES THAT WE SHOULD GO FORWARD.

AND SO WITH THAT BEING SAID, I HAVE BEEN VERY RETICENT TO JUMP RIGHT BACK INTO THE POND.

YEP.

AND SO I HAVE VARIOUS, DEPENDING ON THE VARIOUS PROGRAMS, I HAVE VARIOUS HOLDS

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WE'RE COMPLETING PROJECTS THAT ARE UNDERWAY, BUT WE'RE NOT TAKING NEW APPLICATIONS, UH, FOR PROJECTS.

AND SO IT'S OBVIOUSLY AFFECTING THE CYCLE OF HOW EVERYTHING NORMALLY FLOWS UNTIL WE GET SOME SORT OF WRITTEN AUTHORIZATION THAT SAYS, YOUR MONEY'S RESTORED.

YEP.

SO THEY, THEY WERE QUICK TO SEND OUT A FREEZE ORDER AND A SUSPENSION OF THE FUNDING, BUT THEN THEY JUST GIVE US A VERBAL ASSURANCE TO MOVE FORWARD.

I'M LIKE, CAN THEY SEND US AN EMAIL SAYING THAT? AND WE DON'T EVEN GET AN EMAIL SAYING THE MONEY'S RESTORED.

SO WE'RE JUST REALLY DOING PROJECTS THAT ARE IN, IN PLAY.

AND THAT STARTED AND WE'RE, WE'RE CREEPING ALONG UNTIL WE CAN GET SOME CLEAR, CLEAR ANSWERS.

SO SORRY TO INTERRUPT.

YES, SIR.

NO, THANK YOU.

UM, THAT DOES CONCLUDE THE PROGRAM SIDE OF THINGS.

ON THE ADMINISTRATIVE SIDE, WE ARE CURRENTLY AT 2%, UH, BELOW BUDGET, WHICH IS WHERE WE WOULD LIKE TO BE AT.

UM, UH, WE DO EXPECT AN UNDER RECOVERY FOR THE YEAR.

UH, BUT THAT WAS, UH, STATED BACK WHEN WE PRESENTED THE BUDGET, UM, BACK IN DECEMBER OF LAST YEAR.

UH, THAT DOES CONCLUDE MY PRESENTATION.

I'D BE HAPPY TO ANSWER ANY QUESTIONS.

MR. YES, MA'AM.

ANY QUESTIONS FROM THE BOARD? SO IN TERMS OF THE DEFICIT FOR AGING, HAS THERE BEEN ANY KIND OF, UH, PUSHBACK OR OUTCRY FROM FROM H-H-S-H-H-S? WELL, NO.

FROM LIKE CONSTITUENTS, FROM ELECTED OFFICIALS, IS THERE ANYTHING THAT THE STATE'S GONNA TRY AND STEP IN TO FILL FROM, FROM, FROM OUR MEETING? AND I KNOW, UH, THE EXECUTIVE DIRECTOR DID SEND A NOTE OUT TO EVERYONE BASED OFF OF WHERE WE WERE.

UH, IT DID, WE DEFINITELY GOT THE IMPRESSION THAT HHS DID NOT INTEND TO ENGAGE THE LEGISLATURE IN REGARDS TO TRYING TO GET ADDITIONAL MATCH FUNDING.

'CAUSE THAT'S REALLY WHAT THE CAUSE OF THIS PROBLEM IS.

UH, THEY'RE NOT, THERE'S FEDERAL FUNDING AVAILABLE, THOUGH IT HAS BEEN DECREASED.

BUT THERE IS AN, UH, A LACK OF APPETITE TO ENGAGE THE LEGISLATOR, LEGISLATURE, LEGISLATURE TO, UH, GAIN THE ADDITIONAL MATCH FUNDING REQUIRED THAT WOULD GAIN US ACCESS TO ADDITIONAL FEDERAL FUNDING.

OKAY.

TO ANSWER, I MEAN, I'M GONNA STEP IN JUST A LITTLE BIT BECAUSE WILL'S VERY POLITE ABOUT IT.

I'M, I'M TICKED OFF, UH, THE, THE HEALTH AND HUMAN SERVICES COMMISSIONER WAS ON THAT PHONE CALL AND THEY WERE SPECIFICALLY ASKED IF THEY WOULD GO TO THE LEGISLATURE FOR AN EMERGENCY APPROPRIATION, AND THEY SAID THAT WAS NOT THE PLAN.

AND SO THEY DON'T WANT TO DO A DAMN THING ABOUT IT.

RIGHT.

AND I, I ASSUME THEY'RE TAKING THEIR ORDERS FROM UP TOP, BUT THERE'S NO FUNDING TO FEED THESE HUNGRY PEOPLE.

AND SO, UM, YOU KNOW, THEY STOP THE FEDERAL.

AND I, I WANT TO MAKE SURE, AND I'M GLAD YOU ASKED THE QUESTION BECAUSE I, YOU SAID THAT WE'VE BEEN CUT TO 75% OF FUNDING, BUT I'M NOT SURE THAT THAT'S THE FULL IMPACT.

AND I, IT'S GONNA BE, I WOULD LIKE YOU TO EXPLAIN, BECAUSE I CAN'T DO IT, IT'S GONNA BE LESS THAN THAT.

WHAT WE ARE ANTICIPATING, WE SHOULD GET SOMETHING THEY'RE SAYING, INITIALLY IT SAID TODAY, NOW THEY'RE SAYING THE END OF THE WEEK, UH, ESSENTIALLY AGAIN, THIS IS ABOUT MAX.

SO WHEN WE STARTED THE YEAR, THEY SAID, HEY, WE WERE TO, WE WOULD ALLOW YOU TO BUILD YOUR BUDGETS WITH US PROVIDING 80% OF, OF YOUR AUTHORIZED BUDGET.

SO THAT HAS BEEN CUT TO NOW 75% OF THE AUTHORIZED BUDGET.

SO WHAT THEY'RE SAYING IS THIS IS BECAUSE THEY DON'T WANT TO GET ANY ADDITIONAL MATCH.

SO THEY'RE FORCING US TO, TO TRIM OUR BUDGETS DOWN EVEN MORE.

IN ADDITION TO THAT, WHAT THEY'RE DOING IS THEY HAVE FROZEN ALL OF THE FY 25 FUNDING.

SO ALL OF THAT IS CURRENTLY BEING FROZE.

AND WHAT THEY'RE ASKING US TO DO IS TO GO BACK NOW TO FY 23 AND FY 24 CARRYOVER FUNDING, BECAUSE IN THEIR MINDS, THEY SUBSEQUENTLY HAVE THE MATCH TO MEET THAT.

AND THEY'RE PUTTING ALL OF THAT FUNDING IN A, INTO TWO POOLS, ONE FOR 23, 1 TO 25, AND THEN THEY'RE GONNA SUBSEQUENTLY REALLOCATE THAT AMONGST ALL OF THE 28 AAAS.

SO WHEN WE GET NEW BUDGET NUMBERS, IT'S GONNA BE SIGNIFICANTLY LOWER THAN THE WHAT WE CURRENTLY NEED TO MAINTAIN BUDGET, BOTH WITHIN THAT, THE RURAL AREA AND ALSO WITHIN BAYER COUNTY.

ROUGHLY, WHAT WAS THE CARRYOVER FROM 23? 24? 24 FOR BAY? FOR ALAMO, IT WAS ZERO.

AND FOR BAYER, IT WAS PROBABLY ABOUT $1.7 MILLION.

UH, FOR 23, ALAMO WAS ABOUT $500,000, AND BAYER WAS PROBABLY ABOUT 750,000 BUCKS.

SO THEN THEY'RE GONNA PULL THAT ACROSS THE WHOLE STATE.

AND WE, WE ARE EXPECTING JUST A FRACTION OF THE, WE'LL, WE'LL EXPECT A FRACTION OF THAT, BUT NOT ONLY THAT, WE CREATE A PROBLEM FOR NEXT YEAR.

'CAUSE WHAT THEIR PLAN IS AS TO, AS WE GO INTO 26 IS TO USE WHATEVER CARRY OVER THAT.

THEY'VE JUST PAUSED FOR 25 AND MOVE THAT TO 26.

SO WE'RE, WE'RE GOING DOWN A SLIPPERY SLOPE HERE IN REGARDS TO FUNDING.

YEAH.

THEY WERE VERY UNCLEAR ABOUT 26 FUNDING.

YEAH.

HOW THAT'S GONNA WORK.

AND THE OTHER THING IN THE CALL THAT WAS VERY DISCONCERTING IS EVEN THE HHSC COMMISSIONER SAID, WE DON'T HAVE ANYBODY TO TALK TO IN WASHINGTON, BECAUSE THEY GUTTED THAT AGENCY

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IT JUST DOESN'T HAVE ANY EMPLOYEES.

SO THEY, THEY, THEY DIDN'T, THEY DIDN'T DISBAND IT.

IT'S NOT PRO, NOT APPROPRIATE TO SAY IT'S BEEN DISBANDED.

THEY JUST, IT'S STILL THERE.

THERE'S JUST NOBODY ANSWERING THE PHONE.

SO WE WE'RE WORRIED ABOUT THE SAME THING AT UNIVERSITY HEALTH ABOUT, YOU KNOW, WHAT'S HAPPENING IN THE LEGISLATURE AND WHAT'S COMING DOWN FROM WASHINGTON DC ON FUNDING, WHICH IS CRITICALLY IMPORTANT TO US.

AND SO WE'RE, WE'RE LOOKING AT THAT.

YEAH.

AND WE'RE WAITING FOR MORE INFORMATION.

I, I KEEP WANT TO STRESS, WE'LL KEEP SAYING IT.

WE'RE WAITING TO HEAR FROM THEM ON WHAT THE NUMBERS ARE GONNA LOOK LIKE.

I, I REALLY DON'T FEEL LIKE THERE'S A WHOLE LOT OF GUIDANCE.

WELL, THERE'S NO GUIDANCE FROM WASHINGTON, AND I'M NOT SURE THAT, UM, THE HHSC HAS REALLY GOT A GRASP ON IT JUST YET.

IT'S ALL, YOU KNOW, THEY'RE GETTING HIT WITH IT AND THEN THEY'RE TRYING TO RESPOND AS WELL.

SO WE'RE, IT'S VERY FLUID.

WE'RE JUST WAITING TO SEE WHAT THE DAMAGE IS GONNA LOOK LIKE.

YEP.

YEP.

BUT IT IS, I'M ANTICIPATING IT TO BE LOWER THAN WHAT WAS PREVIOUS PREVIOUSLY PRESENTED SIGNIFICANTLY LOWER CLIFF.

SO WHEN, WHEN DO, WHEN DO THE END USERS START TO FEEL THE IMPACT? I THINK IT'S GONNA BE VERY SOON.

UM, AND THAT'S WHY I SENT OUT AN EMAIL JUST TO GIVE YOU ALL A HEADS UP.

UM, AND BECAUSE I THINK YOU'RE GONNA START HEARING FROM BOTH VENDORS WHO ARE SERVICE PROVIDERS, YOU KNOW, AS WELL AS CONSTITUENTS.

YOUR CONSTITUENTS WHO ARE GONNA BE WONDERING WHAT'S GOING ON.

UH, AND WE'RE GOING TO HAVE TO MAKE SOME TOUGH CALLS ON WHAT TO DO WITH OUR CONTRACTS AND, UM, HOW MUCH WE CAN SUPPLY.

AND I THINK IT'S GONNA BE, I MEAN, TRULY, BECAUSE I HATE TO, I MEAN, I'M JUST SPECULATING BECAUSE WE REALLY DON'T HAVE ANYTHING YET.

HOPEFULLY BY THE END OF THE WEEK WE'LL HAVE SOME NUMBERS AND THEN WE'LL BE ABLE TO START, CUT, UH, START FIGURING OUT WHAT THE CUTS ARE GONNA BE.

WE'VE SUSPENDED ALL OF OUR, UM, COLLATERAL PROGRAMS, FOR LACK OF A BETTER TERM, IN FAVOR OF NUTRITION.

SO, YOU KNOW, THERE'S JUST NOT GONNA BE ANY SERVICES, OTHER SERVICES AVAILABLE THAT, THAT, UH, WE CURRENTLY OFFER, UM, WHILE WE PRIORITIZE NUTRITION.

AND SO, LIKE I SAY, I REALLY, YOU KNOW, THE ANSWER IS, I DON'T KNOW.

YEAH.

FILM INDUSTRY .

WELL, I WANT TO THANK YOU FOR SENDING THAT OUT.

UM, SURE.

I DID SEND IT OVER TO ED ANOS SO HE COULD SEE IT ALSO, BECAUSE WE'RE, YOU KNOW, WE'RE ALL IN THIS TOGETHER AND, UH, UNCHARTERED WATER.

YEAH.

UNCHARTERED WATERS.

YEAH.

WE'VE GOT, YOU KNOW, WHEN PEOPLE SHOW UP OUT THERE, REGARDLESS OF WHERE THE, WHERE THEY LIVE, WHATEVER, AND THEY'RE SICK, WE HAVE TO TAKE CARE OF THESE PEOPLE.

YEAH.

AND IT'S IMPORTANT, IT'S IMPORTANT TO ME AS THE CHAIR, BUT IT'S CRITICALLY IMPORTANT THAT WE RELAY THE MESSAGE BACK TO OUR STATE OFFICIALS AND OUR FEDERAL OFFICIALS ABOUT WHERE WE'RE AT.

YES.

YEAH.

WELL, AND FROM MY PERSPECTIVE, I'M VERY DISAPPOINTED THAT, YOU KNOW, I UNDERSTAND IF WE WERE IN A BAD SITUATION, OBVIOUSLY YOU HAVE TO MAKE CUTS, BUT WE'RE RUNNING A BUDGET SURPLUS OF BILLIONS AND WE CAN'T AFFORD, WHAT'S THE NUMBER ACROSS THE STATE WILL 145 MILLION, IS THAT RIGHT? AM I WRONG ON THAT NUMBER? 140, 500 $50 MILLION.

YEAH.

AND TO FEED, TO KEEP THE PROGRAM UP TO THE STATUS, WHICH WOULD BE JUST A ROUNDING ERROR WITH OUR CURRENT BUDGET SURPLUS AND RAINY DAY FUND.

BUT THAT'S NOT THE LEGISLATURE'S PRIORITY.

SO HERE WE ARE, UH, CHAIR, IF, IF YOU HAVE TO BEG SOME, SOME SERIOUS, UH, ADJUSTMENTS, UH, ONCE YOU GET MORE CLARITY, NOT ONLY ON THIS AND OTHER, OTHER, UH, LENDING SOURCES, UH, THIS EXECUTIVE COMMITTEE, ACCORDING TO CURRENT P IS NOT PLANNING TO MEET UNTIL JULY.

I'M JUST WONDERING WHETHER THERE OUGHT TO BE A, SOME, UH, OPTION TO CALL AN EARLIER MEETING IF THERE'S SOMETHING SIGNIFICANT THAT YOU'VE GOTTA DO.

YEAH, I MEAN, AND MY PLAN WOULD BE, AND I, I'M CERTAINLY GLAD TO TALK ABOUT THAT AS WELL AND KEEP YOU ALL APPRISED.

UM, UH, MY PLAN IS TO BRIEF YOU ALL AND BRIEF THE WHOLE BOARD AT THE NEXT MEETING.

'CAUSE COMING UP NEXT WEEK.

AND I WOULD BE GLAD TO FORMULATE A PLAN ON HOW TO HANDLE HOW YOU'D LIKE TO HANDLE THIS AS WE GO FORWARD.

UM, AS YOU, AS YOU SAID, IT'S UNCHARTERED WATERS FOR US ALL.

BUT, UH, BE GLAD TO IT IF WE WANT TO CALL BACK THE EXECUTIVE COMMITTEE AS WE DO THESE THINGS.

BUT, YOU KNOW, UM, YOU KNOW, WELL, FOR EXAMPLE, I'M AT A LOSS FOR WORD EXCEPT TO SAY THE ANSWERS.

WE GOTTA STAFF, FOR EXAMPLE, WHAT DO YOU DO WITH STAFF IF YOU DO, YOU, YOU PUT 'EM IN A TRAINING PROGRAM? OR DO YOU SUSPEND THEM FOR A PERIOD OF TIME? WHAT, YOU KNOW, THOSE ARE SIGNIFICANT ISSUES THAT WE'D HAVE TO TACKLE AND STAFFING.

MY PLAN IS TO KEEP STAFF ON AS LONG AS POSSIBLE AND, AND

[00:20:01]

IT'S ALWAYS BEEN MY POLICY WHEREVER I'VE BEEN, UH, TO MAINTAIN STAFFING, UH, AS POSSIBLE.

AND EITHER THROUGH ATTRITION, THROUGH LEAVE, REDISTRIBUTE AND REDEPLOY THOSE RESOURCES, THE HUMAN CAPITAL, UM, YEP.

SO THAT WE DON'T HAVE LAYOFFS.

HAVE YOU SPOKE WITH ANY OF THE OTHER COGS THAT THE BIG COGS HE HAS, HE HAS THROUGH AAAS? YEAH, BUT WE HAVEN'T, AND I'VE MET BECAUSE LIKE I SAY RIGHT NOW, IT'S JUST SO FLUID.

NOBODY KNOWS A THING, BUT, BUT HE'S BEEN TALKING TO, TO BE FRANK, WHAT YOU'RE STARTING TO SEE, UH, AS I'M WATCHING IT DEVELOP, SEEING THE LARGER, SO US DALLAS, I SAT IN A MEETING YESTERDAY WHERE WE'RE TRYING TO, UM, THEY, WHAT THEY'RE ASKING TO DO, ONE OF THE PROPOSALS THAT CAME UP, AND THIS WAS JUST A BRAINSTORMING SESSION, WAS TO KIND OF HOLD THE CARRYOVER FOR FY 24 TO GIVE MORE TIME FOR THE SITUATION TO DEVELOP.

UM, AND THAT REALLY FROM OUR PERSPECTIVE, BECAUSE UNLIKE MANY OF ALL THE OTHER COX WE'RE, WE'RE MANAGING TWO AAAS WITHIN ACOG.

SO THAT REALLY WASN'T AGAINST MY INTEREST, IT WAS AGAINST MY INTEREST.

'CAUSE I NEED THE FUNDING AND I NEED THE FUNDING NOW.

MM-HMM .

I, UH, OUR POSITION WAS JUST KIND OF WHATEVER PLAN HHSC HAS, LET SHARE THE PLAN.

LET'S SEE WHAT FUNDING IS AVAILABLE SO I CAN DO THE PROPER NOTIFICATIONS AND WE CAN REDO OUR BUDGET TO MAKE SURE THAT SERVICE ARE GETTING OUT AND TO DO SOME EXPECTATION MANAGEMENT HERE.

WHAT WE'RE EXPECTING IS THIS IS REALLY GONNA BE THE NEW NORM BECAUSE THEY WERE SO, THEY HAVE NO IDEA WHAT'S GONNA HAPPEN FOR NEXT YEAR.

SO WE NEED TO KIND OF SET THE CONDITIONS NOW AND GET EVERYONE TO UNDERSTAND THAT THE NEW FISCAL ENVIRONMENT THAT WE'RE OPERATING, SO THAT, THAT WAS REALLY THE GIST OF IT.

BUT THEY'RE ALL, YOU'RE SEEING LAYOFFS UP IN THE, THE NORTHERN DALLAS COG.

THEY'RE ALREADY LAYING PEOPLE OFF THAT WE PAUSE PROGRAMS HERE.

SOME OF THE SMALLER PROGRAMS PRIORITIZING, UH, NUTRITION.

AND THAT WAS REALLY THE WAY TO GO.

SO THE ONLY ONES THAT HAVE MADE ANY ACTION IN REGARDS TO PAUSING A SERVICE OR ACTUALLY GOING THROUGH FURLOUGHS WAS THE NORTH HOL COG AND, AND US IN REGARDS TO OUR SERVICES.

YOU HAD ANY DISCUSSION FROM THE BOARD ACTION ITEM? SO IF THEY GET SCHOOL OF CHOICE PASSED, MAYBE THEY'LL DO SOME THINGS THAT ARE IMPORTANT UP THERE IN THE LEGISLATURE.

IS THAT, THAT'S RIDICULOUS.

WELL, I, YOU KNOW, WE, WE HAVE JUST COME THROUGH FIVE YEARS FOR COVID AND IT'S STILL AN ISSUE FOR A LOT OF PEOPLE.

UM, WE WENT THROUGH A PERIOD OF, WE COULDN'T FIND EMPLOYEES AND WE FINALLY RAMPED UP TO GET EMPLOYEES AND GOOD ONES.

AND THEN WE HAVE THIS SITUATION ARISE.

SO, UM, HOPEFULLY SOMEONE WILL TAKE A REAL HARD LOOK AT THIS AND SEE WHAT, WHAT EFFECTS THAT IT, THAT IT'S GONNA HAVE.

UM, UM, YOU KNOW, I'M LIKE EVERYBODY ELSE IN THE ROOM.

I'M DEEPLY CONCERNED ABOUT IT.

AND, UM, WE'VE GOT GOOD PROGRAMS. WE'VE GOT GOOD PEOPLE ADMINISTERING THESE PROGRAMS. AND, UM, UH, WE GO THROUGH, YOU KNOW, WE GO THROUGH AUDITS AND WE HAVE CLEAN AUDITS.

IF WE DIDN'T HAVE CLEAN AUDITS, THAT WOULD BE ONE THING.

BUT WE HAVE CLEAN AUDITS AND WE'VE HAD CLEAN AUDITS FOR AS LONG AS I'VE BEEN AROUND.

THIS IS, I TOLD THE COMMISSIONER, THIS IS MY SECOND ROUND AT ACOG.

I WAS INVOLVED IN THE 1981 TO 91 WHEN I WAS DOWNTOWN AS A COUNCIL MEMBER.

SO I'M A RETREAD, I GUESS SO TO SPEAK.

UH, BUT UM, AND WE WENT THROUGH THE EIGHTIES, WE WENT THROUGH THE DOWNTURN IN THE NINETIES, AND, UH, YOU KNOW, HERE WE ARE, WENT THROUGH COVID AND HERE WE ARE AGAIN.

SO I'M HOPEFUL SOMEBODY IN AUSTIN WILL SPEAK UP AND SAY SOMETHING.

AND I WOULD, I WILL ADD TO BUILD ON THAT.

'CAUSE YOU TALKED ABOUT GOING THROUGH COVID AND EVERYTHING.

YOU KNOW, THESE PROGRAMS HAVE ALREADY SUFFERED THE LOSS OF FUNDING THAT THEY WERE USED TO THROUGH THE ADDITIONAL COVID AND ARPA FUNDING.

CORRECT.

SO, YOU KNOW, THE WHOLE, WHOLE PROGRAM IS SUFFERING A SHOCK, UH, FOR LACK OF A WORD, A DOUBLE WHAMMY.

YOU KNOW, WHERE WE LOST THAT COVID AND ARPA FUNDING LAST YEAR AND IT HAD TO READJUST.

YEAH.

AND NOW WE'RE SEEING A SIGNIFICANT CUT AGAIN.

SO IT'S REALLY, IT'S REALLY TAKING, BEATING.

WELL, THE, THE, THE OTHER CONCERN I HAVE, UM, THE LEGISLATURE IS I KNOW IT RIGHT NOW, AND I'VE, I'M NOT AS,

[00:25:02]

UM, BUT WHAT I HAVE LEARNED, UH, THROUGH A PHONE CALL YESTERDAY IN AUSTIN, UM, IS THAT AS FAR AS FEES, THE GOVERNOR DOES NOT WANT TO PUSH ANY FEES REGARDLESS OF WHAT IT IS.

AND, UH, THAT IS VERY CONCERNING BECAUSE THERE ARE PROGRAMS OUT THERE THAT NEED TO BE FUNDED.

THERE ARE PROGRAMS THAT SINCE 1997, HAVE NOT HAD AN INCREASE THAT I'M INVOLVED WITH.

AND SO AS A RESULT OF IT, WE'RE, WE'RE TRYING TO GO THROUGH THAT, BUT THEY'VE BEEN VERY, UH, VERY TOUGH ON THE FACT THAT, UH, NOBODY ON THE SENATE SIDE IS GOING TO VOTE FOR AN INCREASE IN FEES REGARDLESS OF, OF WHAT IT IS.

I THINK YOU SHOULD RUN FOR GOVERNOR JIMMY.

MA'AM, I THINK YOU SHOULD RUN FOR GOVERNOR.

I AM A BB AND A BOX CAR COMMISSIONER.

.

THAT'S, THAT'S THE BIG BOYS THAT PLAY IN THAT.

I'M, I'M JUST A SMALL LITTLE GUY THAT FLIPS HAMBURGERS.

.

DAMN.

GOOD ONE.

STEVE.

HE HAD A DISCUSSION FROM THE BOARD.

DO YOU HAVE MOTION FOR THIS? WE DO MOVE APPROVAL AND TO SEND TO THE BOARD AND SEND TO FULL BOARD COURT FURTHER DISCUSSION.

MOTION.

MOTION.

SECOND.

ALL THOSE IN FAVOR? SAME WITHOUT OTHERS? IN YOUR RIGHT HAND? MR. MR. RODRIGUEZ? SECOND.

IS THAT MS? YES.

YES.

YES.

DID YOU HAVE ATTORNEY? ANYBODY OPPOSED TO THAT? SHE, ATTORNEY MOTIONAL.

CARRY THAT.

BE SET.

UM, ITEM NUMBER SIX,

[6. Discussion and appropriate action on the recommendation to approve the Internal Audit update on completed 2025 activities and projects – Jaye Wells.]

CLEAR.

YEAH, WE HAD AN EMAIL.

GOOD MORNING, MEMBERS OF THE EXECUTIVE.

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'RE 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 THE AUDIT OF REGIONAL SERVICES, ENVIRONMENTAL CONSERVATION, AND THE AREA AGENCY ON AGING.

I HAVE ALSO STARTED TWO OF THE PLANNED AUDITS FOR 2025, AND I DON'T ANTICIPATE ANY ISSUES WITH THEIR COMPLETION.

IN ADDITION TO THE AUDITS AND REVIEWS I'VE WORKED ON, I'VE ATTENDED MULTIPLE TRAINING COURSES TO ENSURE THAT I'M UP TO DATE ON INDUSTRY STANDARDS AND HAVE PROVIDED TRAININGS TO AND INFORMATION TO STAFF RELATED TO FIGHTING FRAUD.

I HAVE ALSO RECEIVED CERTIFICATION IN THE, FOR THE COMMITTEE OF SPONSORING ORGANIZATIONS, CSOS INTERNAL CONTROL PROGRAM.

AND I AM ATTENDING AGA'S LEAD TRAINING NEXT WEEK, UM, AND AM HELPING FACILITATE THE PHYSICAL ASSET REVIEW.

NOW, I'LL DISCUSS THE ISSUES, UH, FOUND IN THOSE AUDITS.

I DISCOVERED NO ISSUES THAT WERE DEEMED SUFFICIENT ENOUGH TO WARRANT BEING A FINDING OR OBSERVATION DURING MY AUDIT OF REGIONAL SERVICES PROGRAM.

AND A FULL REPORT IS ATTACHED TO YOUR PACKETS FOR YOUR REVIEW.

I DID, HOWEVER, HAVE ONE RECOMMENDATION, WHICH ENVIRONMENT ENVIRONMENTAL CONSERVATION SHARES.

THE RECOMMENDATION WAS THAT THE PROGRAM AND ACCOUNTING PERSONNEL UTILIZE THE PROPER ACCOUNTING CODES AND CARE WHEN POSTING AND APPROVING EXPENDITURES.

THIS HAS BEEN DISCUSSED WITH BOTH ACCOUNTING AND PROGRAM STAFF, AND UPDATED APPROVAL PROCESS HAS BEEN IMPLEMENTED.

IN ADDITION, THE AGENCY IS CONSIDERING AN AUTOMATED REIMBURSEMENT SYSTEM FOR ENVIRONMENTAL CONSERVATION RESOURCE RECOVERY.

I HAD ONE FINDING ONE OBSERVATION AND ONE ADDITIONAL RECOMMENDATION.

THE FINDING IS DUE TO A A ANNUAL SUBSCRIPTION BEING RENEWED BY THE PROGRAM WITHOUT FOLLOWING COMPETITIVE PROCUREMENT

[00:30:01]

AND THEN, AND THE THEN CURRENT REGULATIONS TO PREVENT THIS FROM REOCCURRING PROGRAM AND ACCOUNTING STAFF HAVE REVIEW, HAVE RECEIVED ADDITIONAL TRAINING RELATED TO THE REQUISITION AND COMPETITIVE SOLICITATION PROCESS.

IN ADDITION, WE HAVE AGENDA ITEMS PREPARED FOR NEXT WEEK'S MEETING TO UPDATE THE RELATED ACOG POLICIES PER THE CODE OF FEDERAL, FEDERAL REGULATIONS.

THE OBSERVATION IS THAT ENVIRONMENTAL CONSERVATION TEAM RECEIVED NOTICE OF NON-COMPLIANCE FROM THE TEXAS COMMISSION OF ENVIRONMENTAL QUALITY TCEQ REGARDING THE APPROVAL OF PROJECTS PRIOR TO THEIR IMPLEMENTATION AND A FAILURE TO PROVIDE UPDATES OF THOSE PROJECTS TO THE FUNDING SOURCE PROGRAM.

STAFF HAVE UPDATED THEIR PR PROCEDURE DOCUMENTS TO ENSURE THAT THERE ARE ADEQUATE STEPS FOR APPROVAL AND UPDATES.

AND IN ADDITION, THOSE PROCEDURES WERE PROVIDED TO TCEQ.

THE SECOND RECOMMENDATION WAS THAT MULTIPLE PROGRAMS HAD PURCHASED CONCURRENT PROGRAM LICENSES FOR THE COLLECTION AND SCORING OF GRANT APPLICATIONS AND OTHER INFORMATION THAT PROGRAMS ARE REQUIRED TO COLLECT.

AGENCY MANAGEMENT SHOULD CONSIDER MAINTAINING SUB A SUBSCRIPTION REPOSITORY TO COORDINATE SUBSCRIPTION SOFTWARE UTILIZATION THROUGHOUT THE AGENCY TO ENSURE THAT WE HAVE THE MOST EFFECTIVE USE OF AGENCY RESOURCES FOR THE AUDIT OVER ALAMO AND BAYER AGENCY ON AGING.

I HAD ONE OBSERVATION AND ONE RECOMMENDATION.

THE OBSERVATION WAS THAT THE PROCEDURE DOCUMENTS RELATED TO BENEFITS COUNSELING PROGRAM NEEDED TO BE UPDATED.

THE ACTION PLAN FOR THIS WAS THAT PROGRAM STAFF WOULD UPDATE AND DEVELOP SOPS TO MAINTAIN THEM ANNUALLY.

AND THOSE PROCEDURES HAVE BEEN UPDATED FOR THE RECOMMENDATION.

WHILE I HAVE NO CONCERNS RELATED TO THE RECORDS REVIEWED, AND I COMMEND STAFF FOR THEIR RECORD KEEPING PRACTICES, THE PROGRAM IS CURRENTLY TRANSITIONING CLIENT DOCUMENTATION TO ELECTRONIC FILING WITH A FINAL PHASE EXPECTED TO BE COMPLETED BY FISCAL YEAR END.

ONCE COMPLETE, I RECOMMEND THAT THE AGING PROGRAM STOP DUPLICATIVE EFFORTS AND MAINTAIN FAULT INDUSTRY EXAMPLE IN MAINTAINING ELECTRONIC FILING AND RECORD KEEPING OF CLIENT FILES TO ENHANCE CONSISTENCY, EFFICIENCY, SECURITY, AND ACCESSIBILITY.

AND SOME BEFORE YOU, BEFORE YOU FINISH UP, CAN YOU GO BACK TO THE PREVIOUS SLIDE REAL QUICK? YES.

JUST FOR A, ON THE ENVIRONMENTAL CONSERVATION, JUST TO GIVE A LITTLE MORE CLARITY ON THE COMPETITIVE PROCUREMENT NOT FOLLOWED AND WHAT JAY WAS TALKING ABOUT.

SO WE RENEWED A SUBSCRIPTION TO SURVEYMONKEY TO THE TUNE OF ABOUT $7,600.

UM, OUR CURRENT SMALL PURCHASE THRESHOLD IS ROUGHLY, UH, IS IT 3000 OR FIVE? THREE 3000 IS OUR SMALL PURCHASE THRESHOLD.

AND, UM, THE, AS JAY WAS MENTIONING, THE THE CFRS HAVE CHANGED NOW TO WHERE SMALL PURCHASE IS GONNA BE UNDER 10,000.

AND SO WE'RE GONNA BE COMING YOU TO UPDATE IT.

BUT AS HE POINTED OUT, WE RENEWED THAT WITHOUT GOING THROUGH THE COMPETITIVE PROCESS IN VIOLATION OF OUR POLICY BECAUSE IT EXCEEDED $3,000.

AND SO, UH, THAT'S BEING TAKEN CARE OF AS WE UPDATE THE POLICIES.

AND, UM, WE ARE, UM, ALSO GOING TO LOOK AT THE RECOMMENDATION ON A SUBSCRIPTION, UH, DEPOSITORY SO THAT WE KNOW EVERYTHING THAT'S BEING PURCHASED.

UH, THE ISSUE WITH HAVING MULTIPLE LICENSES IS SOMETIMES THE PROGRAMS EITHER HAVE CONFIDENTIALITY REQUIREMENTS SO THAT THEY DON'T WANT TO, THEY CANNOT SHARE INFORMATION BETWEEN PROGRAMS. 'CAUSE FOR INSTANCE, ON HIPAA, IT'S BASED ON A NEED TO KNOW BASIS.

UH, THE OTHER THING IS, IS THAT WE HAVE, UM, TIMES WHEN THE SOFTWARE, FOR INSTANCE, IF SOMEBODY'S WORKING ON IT, THEN THE OTHER PEOPLE CAN'T LOG INTO IT.

SO IT REQUIRES MULTIPLE SUBSCRIPTIONS.

I THINK WE DO A PRETTY GOOD JOB OF DOING IT, BUT I THINK JAY'S RECOMMENDATION IS A GOOD IDEA TO TRY TO FORMULATE A CENTRAL, UH, REPOSITORY SO THAT WE KNOW EXACTLY WHAT WE'VE GOT.

SO WE'RE GONNA WORK ON THAT.

SO I JUST WANTED TO LET YOU KNOW, WE'LL BE IMPLEMENTING THAT.

WE'RE GONNA TRYING TO IMPLEMENT THAT.

WHETHER IT WILL PREVENT US FROM DUPLICATING LICENSE OR NOT, I DON'T KNOW, BUT AT LEAST WE'LL KNOW EXACTLY WHERE WE ARE.

SO WHEN THAT HAPPENED, UM, WAS THERE A TIME CERTAIN THAT YOU NEEDED TO RENEW AND IF YOU DIDN'T RENEW? NO.

OKAY.

? I WISH I COULD SAY THAT, BUT NO.

NO.

WE JUST RENEWED IT AND IT WAS, AND IT'S A, UH, AND QUITE FRANKLY, I'M JUST GONNA BE HONEST WITH YOU, I THINK WE'VE GOTTA GO BACK AND LOOK AT OUR POLICIES BECAUSE, UM, WE HAVE BEEN USING SOFTWARE SUCH AS A DP FOR PAYROLL PROCESSING, AND WE HAVE BEEN USING

[00:35:01]

AND WE'VE BEEN RENEWING THOSE SUBSCRIPTIONS AND WE HAVEN'T SENT THEM OUT FOR COMPETITIVE PROCUREMENT.

AND I DID SOME RESEARCH AFTER READING JAY'S AUDIT REPORT.

I THINK WE HAVE TO.

SO WE'RE GONNA BE INSTITUTING SOME PROCUREMENTS ON THOSE.

I QUITE FRANKLY THOUGHT THAT ONCE WE HAD PROCURED 'EM, BECAUSE THEY CONTROL ALL OF OUR DATABASES THAT GOT ALL OF OUR INFORMATION TO CHANGE VENDORS WOULD BE A HUGE PROBLEM.

OH LORD.

BUT THE, BUT THE, APPARENTLY THE PROCUREMENT STANDARDS REQUIRE THAT YOU STILL PROCURE, PROCURE THEM AND GO THROUGH A COMPETITIVE PRACTICE.

AND SO WE'RE GOING, IS IT RECOMMENDED OR IS IT LEGAL? I BELIEVE IT'S THREE TO FIVE YEARS ON, UH, DEBBIE'S RAISING HER HAND FIVE YEARS.

THE PREFERRED IS THREE AND FIVE.

BUT IS THIS A RECOMMENDATION OR IT'S A NO, THAT'S A STANDARD.

THAT'S THE, THE, THE RULE.

YEAH.

AND THOSE ARE, UM, I'M SORRY.

THOSE ARE, UH, ON DIR AND ON COOPERATIVE BUYING.

SO, BUT WE STILL NEED TO GO BACK AND REVIEW TO MAKE SURE THAT WE'RE GETTING THE BEST VALUE FOR OUR, FOR OUR DOLLARS.

SO IT REQUIRES THE ANALYSIS.

AND I THINK THE ANSWER IS IT PROBABLY WOULD STAY THE SAME, BUT I GUESS IF THEY CAME BACK AND IT WAS A TREMENDOUS DIFFERENCE, IT MIGHT BE WORTH THE MOVE.

BUT WE'VE GOTTA LOOK AND DO, DO THAT.

'CAUSE WE HAVEN'T GO AHEAD.

SO, SO EVEN IF THEY'RE ON BUYBOARD AND ALL THAT, YOU STILL HAVE TO GO THROUGH THE PROCESS E AND REVIEW IT.

YEAH, THE RECOMMEND, I THINK THAT IS A RECOMMENDATION THAT YOU REVIEW.

IF IT'S ON BUYBOARD AND, AND A DRI APPROVED VENDOR, YOU DON'T HAVE TO GO THROUGH THE COMPETITIVE PROCESS.

UH, BUT I THINK THE STANDARD, THE STANDARD GUIDANCE FOR, LET'S CALL IT GUIDANCE.

I DON'T KNOW IF THAT'S NECESSARILY A RULE, IS THAT YOU HAVE TO DO IT EVERY THREE TO FIVE YEARS AND REVIEW IT.

SO WE HAVEN'T BEEN DOING IT.

THAT MAKES, I LEARNED THAT JAY'S AUDIT.

SO WE'RE GONNA BE GOING BACK AND AT LEAST REVIEWING TO SEE, AS DEBBIE SAID, WHETHER WE'RE GETTING THE BEST VALUE FOR OUR, FOR OUR MONEY.

WELL, WE DO THE SAME THING AT DEPOSIT DEPOSITORIES FOR 9 1 1.

UM, BUT IF THIS IS THE BIGGEST PROBLEM, AND THIS IS THE FINDINGS THAT WE'VE HAD, NOT TO MINIMIZE WHAT, WHAT WE'RE DOING, WE'RE IN PRETTY GOOD SHAPE.

THANK YOU FOR SAYING I, I AGREE.

THANK YOU.

YOU KNOW, WE'VE GOT A GOOD LOOK AT A LOT OF THIS STUFF.

WE'VE GOT A $3 BILLION BUDGET DOWN THE STREET.

YEAH.

AND 12,000 PEOPLE ON A LOT OF MOVING PARTS.

SO IF THIS IS, IF THIS IS THE BIG NEWS, WE'RE IN REALLY GOOD SHAPE.

SO IT'S BETTER TO ASK FOR FORGIVENESS THAN .

YEAH.

SO YOU'VE ALREADY DONE THAT.

I'M FINE WITH IT.

ANY OTHER DISCUSSION ON ITEM NUMBER SIX? OH, HE'S GOT IT.

HE HAS TO GET HIS FILE.

OH, I'M SORRY.

I CUT HIM OFF.

OH, YOU'RE, NO, I THOUGHT HE WAS DONE TOO.

IN SUMMARY, I DON'T HAVE ANYTHING ELSE, UM, OR ANY ISSUES THAT I, THAT I BELIEVE NEED TO BE DISCLOSED AT THIS TIME.

THANK YOU JUDGE.

THAT'S IT.

ANY OTHER QUESTIONS? THANK YOU.

QUESTIONS FOR MOTION? GOOD JOB.

GOOD JOB.

WE NEED A MOTION TO ACCEPT THE REPORT.

WE DO.

OKAY.

SECOND ON JUDGE EVIDENCE.

SECOND JUDGE KELLY.

JUDGE, WHAT WOULD THAT, I'M SORRY.

EVIDENCE IN THAT ORDER.

JUST TAKE SOMEBODY.

GOOD JOB.

ANY OTHER DISCUSSION? ALL THOSE IN FAVOR, RIGHT HAND.

ANYBODY OPPOSED TO IT? MOTION CARRIES.

OKAY.

MOVE TO ITEM

[7. Discussion and appropriate action on the recommendation to approve the Quality Assurance update - Bryn Herrera.]

MR. MORNING CHAIRMAN, MEMBERS THE EXECUTIVE, MY NAME IS BRENT HERRERA.

I'M YOUR INFORMATION AND PRIVACY OFFICER.

UM, AS I SAID, I'M FOLLOWING UP JAY TO GIVE YOU AN UPDATE ON OUR INTERNAL REVIEWS AND INITIATIVES SO FAR FOR 2025.

JUST A BRIEF REFRESHER, THE INTENT OF THE ACOG QA PROGRAM IS TO ENSURE THAT OUR DEPARTMENTS MEET AND EXCEED THEIR COMPLIANCE STANDARDS ASSIST SYSTEM, PREPARING FOR EXTERNAL MONITORS AND AUDITS, UH, IDENTIFYING WEAKNESSES AND PROCESSES AND OFFERING RECOMMENDATIONS WITH THE GOAL OF CONTINUOUS QUALITY IMPROVEMENT ON THE OTHER SIDE, MY ROLE AS AN INFORMATION AND PRIVACY OFFICER IS TO REVIEW THE PHYSICAL, TECHNICAL AND ADMINISTRATIVE SAFEGUARDS, WHICH PREVENT UNAUTHORIZED DISCLOSURE OF SENSITIVE INFORMATION, BOTH PHYSICAL AND DIGITAL.

ADDITIONALLY, AND COORDINATE AND IMPLEMENT AND OVERSEE IT PROJECTS AND SERVICES WITH OUR CONTRACTED, UH, SERVICE PROVIDER.

ALSO, I AIM TO PROMOTE COMPLIANCE WITH PRIVACY AND CYBERSECURITY LAWS VIA IMPLEMENTATION OF INDUSTRY STANDARDS, BEST PRACTICES, INCIDENT INVESTIGATION AND IDENTIFICATION OF VULNERABILITIES.

SO QA ON GEARING UP TO TACKLE PROGRAM REVIEWS IN ACCORDANCE WITH THE SCHEDULE, WHICH WAS APPROVED BY THE BOARD, UH, LAST YEAR.

THE MAJORITY OF WORK SO FAR THIS YEAR IS REFLECTED IN A NUMBER OF IT AND PRIVACY INITIATIVES, WHICH WE'LL BRIEFLY GO OVER IN A MOMENT.

I DON'T ANTICIPATE ANY, ANTICIPATE

[00:40:01]

BASED ON THE MONITORING ACTIVITIES WHICH I'VE COMPLETED SO FAR, I FEEL THERE ARE NO SIGNIFICANT BREACHES OF COMPLIANCE OR CONDUCT WHICH WARRANT REPORTING TO YOU TODAY.

UH, THE IST SIDE OF THE OFFICE IS ALWAYS BUSY WITH ONGOING AND NEW INITIATIVES IN 2025 IS NO EXCEPTION.

WORKING WITH JACOB AND CLIFF, WE HAVE BEEN PROACTIVE IN OUR ASSET REPLACEMENT AND LIFECYCLE MANAGEMENT.

UH, WE'RE NOT EXEMPT FROM SUPPLY CHAIN ISSUES, WHICH AFFECT THE ENTIRETY OF THE TECH INDUSTRY, BUT IN ANTICIPATION OF RISING COSTS OF EQUIPMENT, WE'VE BEEN AGGRESSIVE IN THE PROCUREMENT OF NEW DEVICES AND AVOIDED SOME ADDITIONAL EXPENSES.

AS A RESULT.

WE'VE ALSO BEEN WORKING ON INTEGRATING SINGLE SIGN-ON FUNCTIONALITY WHEREVER POSSIBLE ACROSS DIFFERENT SYSTEMS AND APPLICATIONS IN AN EFFORT TO MAKE OUR DIGITAL FOOTPRINT LEANER AND MORE CONSISTENT.

AND WE CONTINUE TO ITERATE ON AND ON AND REFINE DISASTER RECOVERY AND BUSINESS CONTINUITY PLANS.

AND I'LL ACTUALLY BE BRINGING AN ITEM TO THE FULL BOARD NEXT WEEK TO REQUEST THEIR INPUT ON GUIDANCE REGARDING THE APPROPRIATE LEVEL OF DISASTER PREPAREDNESS THE AGENCY SHOULD MAINTAIN.

WE'RE PLANNING TO ADOPT A NEW DATA BACKUP SOLUTION IN THE COMING MONTHS, WHICH ENHANCES OUR CURRENT RESTORATION CAPABILITIES AND ALSO PROVIDES US FOR PERIODIC TEST DRILLS AND TABLETOP EXERCISES.

AND FINALLY, IN A PROCESS WHICH BEGUN LAST YEAR, THE AGENCY'S TRANSITION TO A.GOV DOMAIN HAS BEEN SUCCESSFUL AND, AND HAS PROVIDED US WITH AN INCREASED LAYER OF SECURITY ON OUR ONLINE PRESENCE.

UH, THIS SLIDE IS A SUMMARY OF INITIATIVES AND PROJECTS FOR 2025 IN THE INFORMATION AND PRIVACY REALM.

UH, YOU MAY RECALL THAT THE BOARD APPROVED ACOG'S ARTIFICIAL INTELLIGENCE POLICY AT THE DECEMBER MEETING, AND AS A RESULT, THE PRIVACY OFFICE HAS IMPLEMENTED PROCEDURES TO MONITOR THE ADOPTION AND IMPLEMENTATION OF AI WITHIN OUR ENVIRONMENT.

THE MAIN GOAL IN THIS AREA IS TO BE RECEPTIVE, RECEPTIVE TO THE UTILITY THAT AI TOOLS CAN PROVIDE WHILE STILL BEING COGNIZANT OF OUR DATA PRIVACY REQUIREMENTS AND CONCERNS WITH INTELLECTUAL PROPERTY AND COPYRIGHT INFRINGEMENT.

UH, REGARDING DAILY OPERATIONS, THE INFO AND PRIVACY OFFICE CONTINUES TO COORDINATE WITH ACOG'S MANAGED IT VENDOR TO PLAN, SCHEDULE, AND IMPLEMENT REPLACEMENTS AND UPGRADES TO BOTH HARDWARE AND SOFTWARE THROUGHOUT AN ENVIRONMENT WITH THE INTENT OF INCREASING EFFICIENCY, SECURITY, AND VISIBILITY.

AND WE CONTINUE TO REINFORCE THE STAFF THE IMPORTANCE OF CYBER VI VIGILANCE THROUGH REGULAR TRAINING ENGAGEMENT VIDEOS AND PHISHING SIMULATIONS.

AND ANECDOTALLY, I RECEIVED MANY COMMENTS THAT SUCH TRAINING HAS BEEN FORMATIVE HELPFUL IN IS IMPROVED THE END USER CYBER HYGIENE AND PRIVACY AND SECURITY ARE JOURNEYS RATHER THAN DESTINATIONS.

BUT I WANT TO THANK ACOG LEADERSHIP FOR RECOGNIZING THEIR VALUE AND SUPPORT WHEN IMPLEMENTING THESE INITIATIVES.

SO IN SOME RECENT ACTIVITIES 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 TO STRIVE TO BE AN INTERNAL RESOURCE THAT WE CAN MORE EFFECTIVELY MEET OUR MISSION.

AND FINALLY, I ALWAYS EMPHASIZE THAT IA AND QA HAVE FORMED A PARTNERSHIP TO ENSURE COMPREHENSIVE INTERNAL MONITORING OVER THE AGENCY'S FISCAL AND PROGRAMMATIC ACTIVITIES.

WITH THAT, JAY AND I WOULD LIKE TO THANK YOU ALL, UH, OR LIKE TO THANK ACOG STAFF FOR THEIR CONTINUED SUPPORT AND FACILITATION OF OUR REVIEWS, AND I'M HAPPY TO ANSWER ANY QUESTIONS AND RESPECTFULLY REQUEST YOUR APPROVAL OF 2025, UH, QA AND PRIVACY ACTIVITIES.

QUESTION, DISCUSSION FROM THE BOARD.

DO YOU GUYS HAVE AN ACTUAL AI POLICY? DO YOU GUYS HAVE A TENANT? YES, WE DO.

WE UM, WE, WE HAVE A, A, THE FULL AI POLICY WAS BY BOARD AND THE DESCEND IN SOME, BASICALLY IT SAYS YOU CAN'T USE ANYTHING THAT'S NOT LICENSED AND WE HAVEN'T PROCURED A LICENSE FOR AND VETTED.

OKAY.

YOU HAVE A LICENSE FOR A CERTAIN, A SPECIFIC AI.

WE HAVE NOT PURCHASED ANYTHING YET, TO MY KNOWLEDGE.

HAVE WE, WE UH, WE HAVE HAVE PURCHASED ONE, UH, ENTERPRISE ACCOUNT THROUGH, THROUGH GRAMMARLY.

UM, THAT INCLUDES, INCLUDES THINGS LIKE ASSURANCES AND OTHER, OTHER PRIVACY, UH, ASSURANCES.

YEAH.

OKAY.

YEAH.

SO GRAMMARLY, BUT OKAY, I FORGOT THAT WOULD INCLUDE GREAT AI AI BUT WE HAVEN'T REALLY GOTTEN AN AI FOCUSED OKAY.

UH, PLATFORM YET.

BUT WE'RE LOOKING AT 'EM AND THERE IS, UH, UNFORTUNATELY, I'M JUST GONNA BE IN FULL TRANSPARENCY.

BRYN FOUND SOME PEOPLE THAT WERE USING SOME AI AND HE PUT A STOP TO IT.

UM, BECAUSE YOU KNOW THAT THAT IS JUST RIFE WITH PROBLEMS IF YOU DON'T HAVE IT VETTED, RIGHT? AND SO, UH, WE'RE IN THE PROCESS OF LOOKING AT, UH, APPROPRIATE, APPROPRIATE SOFTWARE FOR OUR USE WITHIN THE AGENCY.