04:53Superintendent Michael J. Burke reported on a critical change to the audit committee selection criteria driven by legislative issues related to Diversity, Equity, and Inclusion (DEI). The modification involved removing language that encouraged diverse racial and ethnic representation on the audit committee. The urgency of the amendment was underscored by the potential risk to approximately $300 million in federal funding, necessitating immediate compliance with approaching deadlines. Burke expressed concern about the lack of prior consultation before implementing the policy change, emphasizing its impact on the independence of internal audit functions.

16:05Amid these changes, Burke also highlighted legislative updates affecting the auditor general’s office and the district’s internal audits. Proposed changes include a bill that repeals the requirement for schools to maintain an internal audit office and another that could restructure the auditor general’s office under a new Florida Accountability Office. These legislative proposals have raised concerns among board members about the future landscape of external audits and oversight.

19:06In addition to legislative discussions, the board received updates on the district’s recent accreditation review, where it passed the Commission for Florida Law Enforcement Accreditation. The positive performance of the investigation team was noted, with the superintendent expressing confidence in securing the accreditation award. However, recommendations from the Association for Inspector General’s peer review were also discussed, including transitioning from paper-driven processes to digital workpapers and acquiring subpoena powers to enhance investigation effectiveness.

26:30The board’s attention then turned to the fiscal year 2024 internal funds audit, which covered 177 schools. This audit, mandated by state code, evaluated financial management and compliance with Florida statutes and school board policies. Significant issues were identified, particularly concerning disbursements, where 76 schools made purchases over $1,000 without pre-signed purchase orders. Additionally, 37 schools lacked supporting documents for transactions, and 39 schools experienced delays in depositing collected funds, ranging from 1 to 54 working days.

01:09:53Concerns about non-compliance in fundraising activities were also highlighted. Documentation for resale items was incomplete at 31 schools, pre-approval for fundraising activities was missing at 13 schools, and some activities occurred without principal authorization at 12 schools. In response to these findings, the board proposed targeted training for schools with specific compliance issues and suggested that repeated findings should impact principal evaluations to ensure accountability.

The meeting also addressed the leasing process and internal audits, focusing on the timing of lease executions and the need for digital signatures to streamline operations. Concerns were raised about leaseholders on school campuses during student presence, prompting discussions on improving the leasing process. The transition to cashless systems was noted, reducing risks associated with cash handling, particularly through online payment systems for after-school programs.

40:28A comprehensive 700-page report detailing audit findings for individual schools was discussed, with calls for improved communication of trends and analysis to enhance board members’ understanding.

As the meeting concluded, the board reviewed procurement activities, noting improvements in follow-up and resolution of older issues. Discussions also covered audit recommendations and follow-ups, with a focus on policy updates and clearer definitions of terms like “material weakness” and “deficiencies.” The board acknowledged improvements in background screening processes, reducing the number of pending cases significantly.