RIGHT NOW. RECORDING IN PROGRESS. THANK YOU. THANK YOU. CITY SECRETARY STAFF, WE ARE
[I. INVOCATION, PLEDGE & ROLL CALL]
[00:00:09]
WANT TO SAY GOOD EVENING TO EVERY. GOOD AFTERNOON TO EVERYONE. WE'RE HERE FOR OUR CITY COUNCIL SPECIAL MEETING ON WEDNESDAY, APRIL 15TH, 2026 AT 1:00 PM. IT'S A LITTLE AFTER 1101. YOU MAY JOIN US BY TELEPHONIC AND OUR VIDEO CONFERENCE, AND YOU MAY DO SO BY DIALING OUR NUMBERS. YOU CAN DIAL 877853524 7 OR 8 887880099. PLEASE ENTER THE MEETING ID, WHICH IS 85725120586, AND OUR PASSCODE 134880. ALSO, WE WELCOME AND OUR AMERICAN WITH DISABILITY BY WAY OF OUR AMERICAN WITH DISABILITIES ACT TO THE CITY OF PORT ARTHUR. YOU CAN PROVIDE AND WE MAKE ACCOMMODATIONS FOR YOU, BUT YOU MAY DO SO BY CALLING 24 HOURS IN ADVANCE TO OUR CITY SECRETARY'S OFFICE AT (409) 983-8115. AT THIS TIME, WE'RE GOING TO ASK EVERYONE TO PLEASE MUTE YOUR CELL PHONE DEVICES OR MOBILE DEVICES.WE'LL HAVE OUR INVOCATION, OUR PLEDGE, AND OUR ROLL CALL. I'M GOING TO ASK COUNCIL MEMBER BECKHAM TO LEAD US IN PRAYER. WE'LL HAVE OUR PLEDGE AND THEN OUR ROLL CALL. WOULD YOU BOW WITH ME IN PRAYER? FATHER GOD, WE COME TO YOU TODAY HUMBLY APPROACHING YOUR THRONE OF GRACE. WE ASK THAT YOU BE HERE IN OUR PRESENCE, GOD, AND DIRECT OUR DISCUSSIONS, OUR VOTES, EVERYTHING THAT GOES INTO THIS PROCESS TODAY FOR OUR WORKSHOP. LORD, WE THANK YOU THAT WE LIVE IN A COUNTRY THAT WE'RE ABLE TO DO THIS, AND WE'RE THANKFUL FOR THE OPPORTUNITY TO SERVE OUR CITY. AS ALWAYS, BE WITH US TODAY AS WE GO ABOUT OUR BUSINESS, KEEP US SAFE AND HEALTHY AS WE LEAVE THIS PLACE. IN JESUS NAME, AMEN. AMEN. I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS, ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL. CITY SECRETARY WILL ESTABLISH A QUORUM, PLEASE. YES, MAYOR. MAYOR MOSES HERE. MAYOR PRO TEM DOUCETTE HERE. COUNCIL MEMBER LEWIS HERE. COUNCIL MEMBER. HAMILTON. EVER FEEL. COUNCIL MEMBER BECKHAM HERE? COUNCIL MEMBER KINLAW, COUNCIL MEMBER FRANK HERE. YOU HAVE A QUORUM. MAYOR THANK YOU SO MUCH. WE'RE
[II. WORKSHOP]
GOING TO MOVE NOW TO ITEM TWO, OUR WORKSHOP, OUR OUR WORKSHOP REGARDING THE SCOPE OF WORK FOR THE FORENSIC AUDIT. ALL RIGHT. AND WE'RE GOING TO OPEN UP. MAYOR PRO TEM DOUCETTE YES, I LOOKED OVER THE PREVIOUS. FORENSIC AUDIT THE CITY HAD THE LAST TIME I READ THROUGH THAT AND SEEN BASICALLY HOW IT WAS DESIGNED. AND IT'S BASICALLY THE WAY IT WAS. AND I REMEMBER IT'S FIRST OF ALL, WE NEED TO DECIDE WHAT WE WANT THEM TO LOOK AT, BECAUSE THAT WILL BASICALLY GOING TO HAVE A LOT TO DO WITH THE COST OF THE FORENSIC AUDIT. AND ALSO WHAT AREAS WE WANT THEM TO LOOK IN, INSTEAD OF HAVING THEM TO LOOK INTO AREAS WHERE WE SEE THERE'S NO PROBLEMS OR NOTHING LIKE THE LAST ONE, FOR INSTANCE, WAS HAD PUBLIC WORKS, LISTED PARK AND RECREATION AND STUFF. YOU KNOW, I DIDN'T I DON'T SEE ANYTHING THAT WE'RE DOING. WE NEED TO LOOK AT IN PARKS AND RECREATION. HOWEVER, THERE ARE AREAS THAT WE. SO THE FIRST THING WE SHOULD ESTABLISH IN THE SCOPE IS WHAT AREA THAT WE WOULD LIKE FOR THEM TO LOOK IN TO. AND THE OTHER THING IS THE PERIOD OF TIME, THE LAST. FORENSIC AUDIT THAT THE CITY DONE, THE PERIOD OF TIME WAS FROM OCTOBER 2009 TILL MARCH 2015. OKAY. YOU KNOW, SO. THE TIMEFRAME WE NEED TO FIRST ESTABLISH, YOU KNOW, I, I THINK THAT WE SHOULD PROBABLY GO FROM FISCAL YEAR 21 THROUGH 25, WHICH IS A FIVE YEAR PERIOD AND STUFF. SO THAT'S WHAT WE MUST AGREE UPON AND DECIDE WHAT TIME PERIOD WE WANT. THAT'S JUST MY SUGGESTION. SO AT THIS TIME, YOU KNOW, OTHER COUNCIL MEMBERS CAN COME IN. THANK YOU. COUNCILMEMBER. THANK YOU. MAYOR. I THINK YOU'RE PROBABLY IF WE'RE GOING TO DO SOMETHING, I THINK YOU WANT TO TAKE IT IN INCREMENTS LIKE THAT. SO A FIVE[00:05:03]
YEAR PERIOD WOULD BE SOMETHING THAT WOULDN'T BE UNJUST, UNKNOWN. AND YOU, WHEN WE WHEN WE ESTABLISHED THE GUIDELINES, MAYOR PRO TEM, ARE YOU SUGGESTING THAT WHATEVER COMPANY THAT WE ARE, CONTRACT COMPANY THAT WE HIRE REPORTS TO THE COUNCIL OR HOW HOW ARE WE GOING TO ESTABLISH THE CRITERIA AND MOTIVES? YEAH, WELL, I WAS GOING TO GO DOWN BASICALLY WHAT WAS DONE WITH THE LAST ONE AND BRING BEFORE COUNCIL. AND THEN WE COULD DECIDE, YOU KNOW, WHETHER WE'RE GOING TO DO THAT. BUT. AS I GO DOWN HOW THEY DONE IT, THAT'S BASICALLY WHAT I'M READING NOW. AND THE FIRST THING THEY HAD WAS THE PERIOD OF TIME IN WHICH THEY WERE HIRED TO OKAY, SO IF WE GET THE TIME, THEN WE'LL START THE BALL ROLLING ON. EXACTLY. KNOW WHAT PERIOD OF TIME. OKAY. COUNCILMEMBER FRANK. YES, IT'S BEEN A MOMENT FOR US TO GET HERE, BUT WE ARE HERE NOW. ARE WE GOING TO HAVE ANY FINANCIAL CONSIDERATIONS AS WE'RE GOING FORWARD? ARE WE GOING TO TAKE IN CONSIDERATION? THE COST OF THE AUDIT BEFORE? ARE WE JUST GOING TO HAND THEM THE SCOPE AND SEE WHAT THEY WHAT THEY WHAT THEY WHAT THE WHAT THE COST AND THE BILL OF IT IS GOING TO BE RIGHT. NORMALLY WHEN YOU ESTABLISH A SCOPE AND YOU GO OUT FOR REQUEST FOR QUALIFICATIONS AND STUFF, THE COMPANY YOU SELECT TO DO IT, THEN YOU CAN START NEGOTIATION ON COSTS. AND IF YOU FEEL THAT COST IS MORE THAN WHAT YOU CAN, THEN YOU COULD GO THROUGH THE PROCESS OF PURCHASING AND CONTRACTING WHERE WE ACTUALLY CAN GO TO ANOTHER PERSON THAT RESPONDED AND ASKED, YOU KNOW, WHAT ARE YOU ALL GOING TO CHARGE? SO WE CAN HAVE THAT WHERE WE CAN ACTUALLY NEGOTIATE AND GET A PRICE RANGE. AND IF IT'S NOT SUITABLE, THEN YOU CAN ALWAYS GO TO THE NEXT PERSON AND THAT'S THE WAY IT'S DONE.THAT'S THE PROCESS WE'RE SUPPOSED TO USE, YOU KNOW, SO WHEN YOU'RE DOING FOR REQUEST FOR QUALIFICATIONS, FIRST SELECTING SOMEBODY, THEN ONCE YOU SELECT THEM, YOU GO TO THE NEGOTIATION OF PRICE. AND IF YOU'RE NOT SATISFIED WITH THAT PRICE, THEN YOU COULD GO TO THE NEXT PERSON AND SEE WHAT THEY WANT. SO YOU CAN ACTUALLY BID IT OUT. SO TO SAY. IF NOT USE BID, BUT YOU DON'T HAVE TO. THE PERSON WE SELECT DON'T HAVE TO BE THE PERSON THAT WE'RE GOING TO GIVE THE CONTRACT BECAUSE WE SELECT YOU BECAUSE OF WHAT YOU SUBMITTED TO DO THIS, BUT WHAT YOU'RE GOING TO CHARGE US AND IF WE FEEL IT'S NOT IN PLACE, AND I'M QUITE SURE WE HAVE SOMEBODY GIVE US SOME IDEA ON WHETHER THAT'S ACCEPTABLE OR NOT, YOU KNOW, AND IF NOTHING ELSE, WE GO BACK TO ANOTHER BIDDER, YOU KNOW, AND IF AT SOME POINT IN TIME WE FEEL THAT IT'S JUST MORE THAN WHAT YOU WANT, THEN YOU CAN COME BACK AND SAY, OKAY, THEN LET'S LOOK AT THIS SCOPE. MAYBE LET'S REDUCE THE TIME FRAME OR SOMETHING. BUT THE MAIN THING IS YOU GOT TO GET IT GOING BEFORE YOU CAN REALLY DECIDE, OKAY, WHAT'S FINAL? MAY I ASK ONE MORE QUESTION, MA'AM? OH, SURE. THE OTHER QUESTION THAT I WANTED TO. SO ARE WE AS INDIVIDUALS GOING TO GO AROUND THE DAIS AND, AND, AND SPECIFY WHAT EXACTLY IT IS THAT WE WANT LOOKED AT INDIVIDUALLY? WELL, YES. WHEN I THE NEXT PART OF THAT IS WHERE WE IDENTIFY WHAT WE WANT THEM TO LOOK AT. OKAY. AND THEN EACH COUNCIL MEMBER WILL HAVE THE OPPORTUNITY AT THAT TIME TO SAY IT. AND LET ME LET ME JUST SAY THIS AS I GO THROUGH THIS AND GIVE YOU THE INFORMATION, YOU'LL GET A BETTER UNDERSTANDING OF IT BECAUSE IT'S PART OF DOING THE INTERVIEWS WITH COUNCIL MEMBERS. THEY'RE GOING TO TALK TO STAFF, THEY'RE GOING TO ESTABLISH A HOTLINE FOR CITIZENS TO TO CALL IN. SO THIS FORENSIC AUDIT IS GOING TO ENCOMPASS ALL OF THAT, THAT COUNCIL MEMBERS, EACH ONE, EACH COUNCIL MEMBER AT THAT TIME WILL BE INTERVIEWED PERSONALLY. SO IT'S NOT LIKE YOU PUT ALL OF THIS STUFF IN YOUR SCOPE. YOU KNOW, THEY'RE GOING TO ESTABLISH IT AND THAT'S WHAT THEY SAY WHEN THEY ACCEPT IT AND AGREED TO IT.
WHAT ARE THEY GOING TO BE COVERING? YOU KNOW, SO WE CAN SAY FINANCE AND STUFF. AND FOR AN EXAMPLE, ORDINANCE AND LOCAL GOVERNMENT CODES AND FOLLOWING THEM OR SOMETHING, LOOK INTO
[00:10:06]
FINANCE ORDINANCE AND LOCAL GOVERNMENT CODES. YOU CAN SAY, LOOK IN THE FINANCE.CONTRACTING OR PURCHASING OR SOMETHING LIKE THAT. BUT EACH, EACH THING WE PUT IN WILL HAVE TO GIVE THEM A FEEL. AND HOW ARE THEY GOING TO DO THAT IS WHEN THEY COME AND THEY TALK TO US, THEY TALK TO PEOPLE, THEY TAKE CALLS OR WHATEVER IT IS. THEY'LL BE LOOKING AT CERTAIN THINGS. THEY KNOW HOW TO CONDUCT IT, OKAY? THEY KNOW WHAT TO PULL. THEY'RE GOING TO BE GOING INTO THESE AREAS, BUT IT WON'T JUST RESTRICT IT TO WHAT THEY WANT. IT'S GOING TO BE OPEN TO COUNCIL MEMBERS ONCE YOU DO YOUR INTERVIEW, BECAUSE THEY'RE GOING TO DO IT, AND THAT'S WHAT I'M GOING TO GO OVER IT. BUT YOU GET A PRETTY GOOD UNDERSTANDING. BUT WE JUST NEED TO SELECT THE AREAS BECAUSE AND THAT'S WHY I READ THIS INITIALLY FROM THE FIRST ONE, DONNA, YOU KNOW, THEY IDENTIFIED FINANCE, PUBLIC WORKS, PARKS AND RECREATION AND HUMAN RESOURCES. YOU KNOW, IT SAYS THAT THE FORENSIC AUDITING PROCEDURE TO BE PERFORMED, THE CITY TOOK TWO EXCEPTIONS TO THE PROCEDURES THAT WE RECOMMENDED. THE SCOPE OF PROCEDURES INCLUDED PROCEDURES TO FOCUS ON CERTAIN DEPARTMENTS. INCLUDING THE FINANCE, PUBLIC WORKS, RECREATION AND HUMAN RESOURCE. THAT'S WHAT THIS. FORENSIC AUDIT HAD. LET'S GO WORK ON THAT. THERE'S A SCOPE. SO AS YOU GO THROUGH THAT REPORT THAT THEY GAVE, YOU'LL FIND OUT THAT ALL OF THEIR FINDINGS AND EVERYTHING IS, WAS GENERATED OR CAME OUT OF THESE PARTICULAR AREAS, AND ALL THEIR FINDINGS AND COMMENTS WAS IN REFERENCE TO THOSE PARTICULAR AREAS. OKAY.
THANK YOU. OKAY. COUNCILMEMBER KINLAW OH NO. MAYOR PRO TEM YOU CAN ROLL. I MEAN, OKAY, I'LL WAIT UNTIL. ALRIGHT. AND THEY ALSO DISCLOSED IN THEIR LETTER TO TO THE COUNCIL AND IT'S GOING TO BE THE SAME. AND AND WE SHOULD MAKE SURE THAT WHOEVER WE HIRE UNDERSTAND THIS IS THE PROCEDURE AND THE AND, AND THE WAY WE WOULD WANT IT CONDUCTED. IT SAYS THE PROCEDURE WILL NOT NECESSARILY DISCLOSE ALL POTENTIAL IRREGULARITIES, BUT WERE INTENDED TO ADDRESS NUMEROUS QUESTIONS THAT HAVE BEEN RAISED ABOUT THE OPERATION AND FINANCIAL ACTIVITIES OF THE CITY. SO BASICALLY, THEY'RE LETTING YOU KNOW THAT WE AIN'T GOING TO GO THROUGH EVERY EVERY THING. WE'RE GOING TO GO INTO THESE AREAS AND WE'RE GOING TO PULL OUT CERTAIN THINGS. AND I ENCOURAGE THESE COUNCIL MEMBERS TO GO ON TO OUR WEBSITE AND AND HIT FINANCIAL INFORMATION. ONCE YOU HIT FINANCIAL INFORMATION, THE SUBTOPICS THEY'RE GOING TO POP UP IS GOING TO BE THE DIFFERENT REPORTS. AND ONE OF THEM WILL BE THE FORENSIC AUDIT IN 2015. AND IF YOU HIT THAT, THE WHOLE RESULTS OF THE AUDIT IS GOING TO BE THERE. IT'S LIKE 31 PAGES. THIS IS IT, YOU KNOW, AND YOU GET A CHANCE TO LOOK AT IT AND LOOK AT WHAT WERE SOME OF THE ISSUES THAT THEY HAD WHEN THEY DONE IT AT THAT TIME. IT GIVES YOU AN IDEA ON HOW THEY LOOK AT THINGS, HOW THEY RESOLVE THE ISSUES, BECAUSE ISSUES THAT WERE TURNED INTO THEM EITHER BY COUNCIL MEMBERS OR BY STAFF OR BY CITIZENS, THEY GO BACK AND THEY LOOK AT THESE, BUT THEY'RE LOOKING AT POLICIES, PROCEDURES, AND THEN THEIR FINDINGS ARE BASED ON THAT. AND THAT'S WHAT THEY SAY, YOU KNOW, AND THE GOOD THING ABOUT IT AND AND THE REASON I REALLY WANTED THIS IS IF YOU GO THROUGH THIS WHOLE. FORENSIC AUDIT, YOU'LL FIND OUT THAT ALL OF THEIR FINDINGS WHEN, WHEN THEY GAVE THEIR FINDINGS, THEY ALWAYS REFERRED TO WHETHER IT WAS WITHIN WHAT WAS WRITTEN OR WHETHER YOU DIDN'T FOLLOW IT. THAT'S WHAT THEIR FINDINGS, YOU KNOW, THEY EITHER SAID, YES, SOMEONE COMPLAINED ABOUT THIS, BUT WHEN WE LOOKED INTO IT, YOU KNOW, IT WAS WITHIN WHAT WAS WRITTEN. OR THEY SAY WE FOUND THE DOCUMENTATION TO SUPPORT THAT DECISION. SO IT'S NOT LIKE SOMEONE CAN PUT A COMPLAINT IN AND THEY'LL LOOK AT IT AND THEN
[00:15:09]
THEY'LL GO BACK AND THEY'LL SAY, WELL, THEY COMPLAIN ABOUT IT. NOW THEY'RE GOING TO ACTUALLY LOOK FOR DOCUMENTATION. THEY'RE GOING TO LOOK AT IT. THEN WHEN THEY COME AT THE END, THEY'RE GOING TO SAY, YES, WE FOLLOWED IT. WHEN YOU READ IT, IT'S GOING TO IT'S GOING TO IDENTIFY SOME FINDINGS WHERE THEY ACTUALLY TELL US WE NEED TO GO BACK AND TAKE A LOOK AT DOING THIS IN ORDER THAT IT WON'T RECUR ALL. YOU'LL SEE SOME FINDINGS WHERE THEY MAKE RECOMMENDATIONS ON HOW WE SHOULD DO SOMETHING THAT'S GOING TO ELIMINATE ANY MISINTERPRETATION OR ANY CONFUSION, OR ELIMINATING THE RISK THAT WE MAY HAVE. YOU KNOW, IT'S IT'S VERY ENLIGHTENING, YOU KNOW, BECAUSE IT'S NOT JUST THIS IS WRONG AND THAT'S IT.YOU KNOW, IF IT'S WRONG, THEN THEY MAKE RECOMMENDATIONS. AND IF IT WASN'T SOMETHING THAT WAS AN ISSUE, THEY SAID IT, IT WAS NOT AN ISSUE. IT FOLLOWS THIS, BUT. IT'S SOMETHING THAT EITHER CAN HELP YOU. TO LOOK AT AREAS THAT YOU MAY THINK THAT THERE'S NO PROBLEM, BUT IT'S A PROBLEM, YOU KNOW, AND YOU'RE GOING TO FIND OUT BY READING IT ALL. IS IT GOING TO GO BACK TO WHAT IS WRITTEN? WHEN THEY LOOK AT IT, THEY'RE GOING TO GO BACK AND LOOK WHAT IS WRITTEN. OKAY. SO THAT'S IT. NOW ANOTHER PART THAT YOU'RE GOING TO SEE IN THERE IS THE ENGAGEMENT OF THE SCOPE. AND THAT'S WHEN THEY'RE GOING TO JUST BASICALLY SAY HOW THEY'RE GOING TO DO IT AND EVERYTHING. AND I'LL READ IT VERBATIM BECAUSE IT'S ONLY LIKE A COUPLE PARAGRAPHS. IT SAYS HERE THEY WERE RETAINED BY THE CITY THROUGH THE REQUEST FOR QUALIFICATION TO PERFORM FORENSIC AUDITING PROCEDURES IN RESPONSE TO CITIZEN PETITION FOR A FORENSIC AUDIT. WE ARE PLEASED TO OFFER THIS REPORT TO THE CITY, WHICH OUTLINED OUTLINES THE AGREED SCOPE OF WORK PERFORMANCE AS DEFINED IN OUR ENGAGEMENT LETTER DATED MARCH 3RD, 2016, PHASE ONE AND ADDENDUM JULY 6TH, 2016. PHASE TWO ADDITIONAL CLOSE OUT PROCEDURES WERE AGREED TO DURING A STATUS MEETING WITH CITY MANAGEMENT AND ON NOVEMBER 30TH, 2016, THE AGREED UPON SCOPE AND METHODOLOGY EMPLOYED WERE DESIGNED TO BRING FOCUS TO A VERY BROAD SCOPE OF THE PETITION SIGNED BY CITIZENS OF PORT ARTHUR AND REQUEST FOR QUALIFICATIONS. THE PROCEDURE DEPLOYED THROUGHOUT THE INVESTIGATION WERE BASED UPON OUR EXPERIENCE AND THE INFORMATION GATHERED IN PHASE ONE, WHICH WAS THE INTERVIEWS AND AND THE THINGS THAT WERE LISTED, THE AREAS WE WANTED. AND IT SHOULD BE NOTED, IN NO WAY WAS THE FIRM LIMITED OR IMPAIRED BY ANY ACTIONS OF CITY MANAGEMENT OR CITY COUNCIL'S. OKAY, THAT WAS FOR THE SCOPE.
THEN ALSO, YOU'LL FIND IN THERE THE OUTREACH TO THE PUBLIC. AND AT THAT TIME, THEY TALK ABOUT THE ITEMS OR THINGS THAT SOME OF THE CITIZENS, NOT CITIZENS, BUT THE PEOPLE WHO CALLED IN, GIVE YOU AN IDEA ON WHAT WAS HAPPENING WHEN THEY ESTABLISHED THE TOTAL NUMBER WAS PUBLISHED IN VARIOUS MEDIA OUTLETS. SO THAT MEANS THAT ONCE THEY ARE EMPLOYED, THEY WILL ESTABLISH A PHONE NUMBERS, AND IF THEY'RE NOT, THEN WE NEED TO MAKE SURE THAT THEY DO THAT. THAT WAY WE GET CITIZENS PARTICIPATION AND EVERYTHING. AND THE TOLL FREE NUMBER WAS ESTABLISHED IN VARIOUS MEDIA OUTLETS AND POSTED ON CITY RESOURCES. THEY RECEIVED A TOTAL OF 12 CALLS.
YOU KNOW, AND THEY FOLLOWED UP ON THEM. AND I THINK INTERVIEW CONDUCTED, I THOUGHT THEY HAD THE NUMBERS. I GUESS. GUESS NOT. BUT THEY ESTABLISHED THE THE NUMBER AND THE NUMBER IS LISTED SO THAT IT'S NOT ANYTHING DONE. AND EVERYTHING IS VERY TRANSPARENT IN THE CONDUCT OF THE FORENSIC AUDIT. VERY TRANSPARENT, TRANSPARENT TO CITIZENS AND CITIZENS HAVE THE OPPORTUNITY TO CALL IN IF THEY CHOOSE. BUT WE NEED TO MAKE SURE THAT IT'S TRANSPARENT. AND THE OTHER THING THAT HAPPENED WITH THIS FORENSIC AUDIT THAT WE CORRECTED AS A COUNCIL NEAR
[00:20:04]
THE END OF THE AUDIT, DURING THE CONDUCT OF THE FORENSIC AUDIT, PERIODICALLY, THEY WERE GIVING PERIODIC UPDATES OF THE AUDIT, BUT THEY WERE GIVING THEM TO THE CITY MANAGER. AND WE REALLY DIDN'T GET UP TO UNTIL WE REQUESTED THAT THEY COME AND GIVE US AN UPDATE AS A COUNT. AND THAT'S WHEN WE FOUND OUT THAT THEY HAD BEEN GIVING THEM. SO WE NEED TO ESTABLISH THAT THE FORENSIC AUDIT IS BEING REQUESTED BY THE COUNCIL, AND THEY'RE WORKING FOR THE COUNCIL, AND ANY UPDATES SHOULD BE GIVEN TO THE COUNCIL. YOU KNOW, IF IT'S SOMETHING THAT.REQUIRES A CLOSED SESSION, THEN THEY SHOULD DO IT IN CLOSED SESSION OR IF IT'S OPEN SESSION BEING OPEN SESSION. BUT THE COUNCIL SHOULD HAVE PERIODIC UPDATES DURING THIS INSPECTION, AND IT SHOULD BE GIVEN TO COUNCIL. OKAY. SO. GIVING ANSWERS TO SOMEBODY TAKE THE MANAGER'S PHONE NUMBER. OKAY. BUT SO I ENCOURAGE EVERYBODY JUST TO EVEN IF YOU DON'T PRINT IT OUT, JUST LOOK AT IT. BUT IT, IT GOES TO EXPLAIN HOW A FORENSIC AUDIT IS CONDUCTED AND EVERYTHING. AND NOW IT'S BASICALLY WHAT WE NEED TO MAKE SURE THAT WE UNDERSTAND IS THAT WE HAVE TO HAVE A SCOPE WHERE WE GIVE THEM A WINDOW THAT WE WANT THEM TO LOOK AT, AND NOT JUST COME IN AND GO INTO EVERYTHING IN THE CITY, BECAUSE I THINK THAT'S WHERE THE MONEY IS GOING TO COME IN ON WHERE WE WANT TO ADDRESS AND WHAT WE WANT TO ADDRESS. THE AREAS THAT THEY HAVE, THEY'LL LOOK AT. BUT THEN AT THE SAME TOKEN, IF ANYBODY HAD ANYTHING, THEN THEY CAN ALWAYS INTERVIEW COUNCIL MEMBERS AND STAFF, BOTH BECAUSE THEY WILL TALK TO BOTH. OKAY.
SO LIKE I SAID, WHEN WE FINISHED THE DISCUSSION, WE NEED TO COME TO A CONSENSUS ON WHAT AREAS WE WANT THEM TO LOOK IN, INTO THE AREAS I HAD LISTED FINANCE, PURCHASING, HR. AND THE OPEN MEETING ACT. THOSE ARE THE FOUR AREAS I HAD, THINGS I WOULD LIKE FOR THEM TO LOOK INTO. ANY OTHER. I HAD THE FINANCE. PURCHASING, HR AND OPEN MEETING ACT BECAUSE NORMALLY ONCE YOU GET THOSE FINANCE, PURCHASING, HR, YOU SAID HR, HR IN THE OPEN MEETING ACT AND OPEN MEETINGS ACT, RIGHT? COUNCIL MEMBER BECKHAM. SO ARE WE IN AGREEMENT THAT THE YEAR SPAN THAT WE'RE LOOKING AT IS FROM FISCAL YEAR 2021 THROUGH FISCAL YEAR 2025? ARE WE ALL IN AGREEMENT ON THAT? YEAH, THAT'S FIVE YEARS NORMALLY. OKAY. YEAH. WELL, I AGREE WITH WHAT MAYOR PRO TEM SAID. AS FAR AS THE AREAS HE WOULD LIKE TO LOOK AT, I HAD HR AND OPEN MEETINGS ACT AND PURCHASING ON MINE AS WELL. I WOULD ALSO LIKE TO LOOK INTO PARKS AND REC, SPECIFICALLY PLEASURE ISLAND. AND I'D ALSO LIKE TO LOOK INTO. I GUESS IT'S GOING TO FALL UNDER PUBLIC WORKS, THE STREETS PROGRAM. OKAY. THANK YOU MAYOR. OKAY.
COUNCILOR, REPEAT YOUR SCOPE. YOU SAID WHAT PLEASURE ISLAND UNDER PARKS AND REC? YES.
PLEASURE ISLAND, THE STREETS PROGRAM. AND THEN I ALSO HAD SOME THAT MAYOR PRO TEM HAD LISTED AS WELL. THE HR AND OPEN MEETINGS AND PURCHASING. YES. OH, PURCHASING. OKAY. OKAY.
COUNCILMEMBER LEWIS, WAIT. I'M SORRY. COUNCILMEMBER KINLAW THANK YOU MAYOR. SO SINCE WE'VE ESTABLISHED THE TIME FRAME, THE FIVE YEAR PERIOD, 21 TO 25, WE GOT THESE AREAS. ANY OTHER SCOPE OF WORK IDEAS THAT WE SHOULD GIVE THE THE COMPANY OR THE DIRECTION WHEN THEY, WHEN THEY REQUEST FOR PROPOSAL, OUR TEAM OR ANYTHING ELSE THAT WE SHOULD GIVE THEM DIRECTIVES.
[00:25:02]
YOU ALSO STATED MAYOR PRO TEM THAT THEY SHOULD RESPOND AND REPORT TO THE COUNCIL WITH UPDATES. I DO AGREE WITH THAT. I DID READ THE 20 2015 AUDIT BACK THEN OF 2017 AUDIT. SOME OF THE MAJOR FINDINGS WERE A LOT OF POLICY TYPE THINGS. I DID READ THAT. SO IF WE'RE GOING TO DO THAT, WE GOT THE SCOPE. THE NEXT THING NOW IS FOR THE COUNCIL TO DO WHAT.WHEN WE ARE TALKING ABOUT ESTABLISHING THE SCOPE OF WORK, WHAT DO YOU WANT US? BECAUSE I JUST WANT TO MAKE SURE THAT WHEN, YOU KNOW, WHEN CITIZENS ASK ME, I'M, YOU KNOW, WE'RE BEING TRANSPARENT AND WE'RE TRYING TO IDENTIFY, I DO LIKE THE IDEA OF THE CALL IN AND HAVING THEM TO CALL IN IF THEY HAVE ANY CIRCUMSTANCES OR CONCERNS WITH COUNCIL DOING THE INTERVIEWS WITH COUNCIL MEMBERS, MAKING SURE THAT EVERY COUNCIL MEMBER HAS A VOICE, INCLUDING EVERYONE ON THIS DIOCESE. WHEN WE'RE TALKING ABOUT GIVING OUR OUR INPUT OF WHAT WE WANT ON THIS SCOPE OF WORK. SO IF YOU CAN KIND OF GIVE ME A LITTLE BIT MORE. ALRIGHT. WELL, WHEN WE DID THIS, YEAH, THE PART WITH THE COUNCIL, WHAT HAPPENED WAS THEY INTERVIEWED WITH EACH COUNCIL MEMBER. OKAY. AND EACH COUNCIL MEMBER COULD GIVE SPECIFICALLY WHAT THEY WOULD WANT TO LOOK AT. AND WHEN YOU READ ABOUT A FORENSIC AUDIT, WHEN THEY'RE CONDUCTING THIS, THEY DON'T. THEY DON'T MENTION NAMES, NOT EVEN FOR CALL INS FOR CITIZENS IS KEPT CONFIDENTIAL. THEY JUST DO THE CHECKING. YEAH. GIVE THE FINAL AND GIVE THE RESULTS. AND AND THAT'S IT. YOU KNOW, THEY DON'T THEY DON'T GET INTO, WELL, WE GOT THIS FROM THIS PERSON OR THAT PERSON, BUT YOU WILL GET A CHANCE TO ANY OF THESE AREAS THAT YOU HAVE IN THE SCOPE WHEN THEY INTERVIEW YOU, IF IT'S ANY PARTICULAR THING THAT YOU WOULD WANT THEM TO LOOK AT, THEY WILL THEN DO THAT. OKAY. THANK YOU MAYOR. ALL RIGHT. COUNCILMEMBER LEWIS. YES, THE THE OUTSOURCING OF VEHICLE MAINTENANCE. WILL WILL THAT BE AN ISSUE BY ITSELF OR FALL ON THE FINANCES? THAT'S WHAT I NEED TO KNOW ON OUTSOURCING VEHICLES. REPEAT THAT ONE MORE TIME. OUTSOURCING VEHICLE MAINTENANCE. OKAY. OUTSOURCING VEHICLE MAINTENANCE. SO IS THERE A DEFINED AREA IN FINANCE OR JUST FINANCE THE WHOLE ENTIRE BECAUSE I THINK YOU HAVE TO DEVELOP A SCOPE WITHIN FINANCE OR JUST THE ENTIRE WITH FINANCE, WITH FINANCE, WE COULD JUST SAY THE POLICIES AND PROCEDURES BECAUSE EVERYTHING, EVERYTHING THAT THEY DONE. AND WHEN YOU READ IT, YOU KNOW, IT'S BASED ON THE PROCEDURES AND POLICIES AND PROCEDURES. AND THEY SAID THAT IN THEIR OPENING REMARKS TO THE COUNCIL IS THAT IT'S ABOUT POLICIES AND PROCEDURES, AND ALL THAT FINDINGS IS GOING TO BE BASED ON POLICIES, PROCEDURES, ANYBODY WHO HAS ANY COMPLAINT, THEY'RE GOING TO LISTEN TO THE COMPLAINT, BUT THEY'RE GOING TO GO BACK AND READ WHAT IS THE CITY'S POLICIES, PROCEDURES OR WHAT LOCAL GOVERNMENT CODES COVERS THIS. AND THEN THAT'S HOW THEY'RE GOING TO DEVELOP THEIR FINDINGS BASED ON DOCUMENTATION THAT THEY HAVE SEEN TO ADDRESS THAT PARTICULAR CONCERN. THANKS, MAYOR. I JUST MY CONCERN IS THAT ONCE WE GO INTO FINANCE, WE HAVE AN A RATING. I DON'T WANT OUR RATING TO DROP. YOU KNOW, OUR. BECAUSE YOU GET AN A RATING THROUGHOUT THE NATION. AND THEN WE GO TO LOOKING INTO FORENSIC AUDIT FOR THE FINANCE. AND IT'S NOT A SCOPE IN WITHIN FINANCE. THEN I THINK WE'RE GOING TO HURT THE CITY OVERALL. AND THAT'S JUST MY THOUGHT. WHEN WE BEGIN TO UNLESS WE HAVE A CERTAIN AREA IN FINANCE, I DON'T WANT TO HURT THE RATING THAT WE CURRENTLY HAVE ALL OVER THE FORENSIC. WHEN YOU DO A FORENSIC AUDIT, SOMEBODY CAN. YEAH, THANK YOU. YOU CAN EVEN THE IMPACT OF IT. OKAY. IT THE IMPACT WON'T HURT A RATING. OKAY. BECAUSE YOUR RATING IS BASED ON WHAT THEY USE, THE CRITERIA THEY USE TO RATE YOU FOR THAT. OKAY. AND THAT IS HOW YOUR RATING IS ESTABLISHED. OKAY. IF YOU HAVE A GOOD RATING AND YOU HAVE ISSUES THAT THIS FORENSIC AUDIT DETERMINES, YOU HAVE YOU ADDRESS THOSE ISSUES, YOU'RE ONLY GOING TO BE BETTER
[00:30:01]
THAN YOU WERE BECAUSE YOU'RE HAVING A FORENSIC AUDIT. DOESN'T IS NOT A NEGATIVE THING.YOU KNOW, PEOPLE TALK NEGATIVE WHEN YOU FEEL IT'S NEGATIVE. BUT THE WHOLE INTENT OF A FORENSIC AUDIT IS TO IDENTIFY AREAS THAT YOU'RE DOING SOMETHING WRONG OR YOU'RE NOT DOING WRONG. AND AS I STATED IN BEGINNING, I DON'T WANT TO SIT UP HERE AND SAY, WELL, YOU KNOW, IT'S NOT NOBODY. NO, IT'S GOING TO BE WHETHER PEOPLE DID THINGS FOLLOWING POLICIES AND PROCEDURES. AND IF YOU'RE NOT, THEN WE'RE GOING TO GET BETTER. SO A FORENSIC AUDIT AIN'T GOING TO HURT NO RATING BECAUSE NO RATING IS BASED ON WHETHER YOU HAD A FORENSIC AUDIT OR NOT.
THANK YOU SO MUCH FOR EXPLAINING THAT. I APPRECIATE IT. YOU KNOW, I, I WAS OUT IN 2015. I HAD JUST GOTTEN ON COUNCIL WHEN THEY WERE COMPLETING IT. AND THEN I'VE BEEN OUT 20, 23 TO 20, 2022. I'M OFF AND NOW BACK IN THE LATE 25. SO I DON'T HAVE A, I DON'T HAVE A, YOU KNOW, A THEN. AND YEAH, FORENSIC AUDIT HERE. BUT ANYWAY, COUNCILMEMBER LEWIS FORENSIC AUDIT JUST MAKES YOU TAKE CARE OF BUSINESS, DO BUSINESS BETTER. IT'S I DON'T, I DON'T LOOK AT IT AS A, AS SOME PUNISHMENT THING, BUT IF YOU'RE DOING SOMETHING THAT'S OUTSIDE OF POLICY OR OUTSIDE OF THE SCOPE OF WHAT IT SHOULD, THE STATE OF TEXAS, STATE OF TEXAS LAWS, YOU POLICE. THAT'S AN ADDITIONAL SELF-POLICING. YOU. WE HAVE AUDITS INTERNALLY THAT DON'T MEAN THAT THEY'RE DOING EVERYTHING. THAT'S JUST AN INTERNAL LOOK. BUT WHEN YOU LOOK AT IT FROM AN EXTERNAL. YOU CAN SEE SOME, SOME, SOME, SOME PROBLEM AREAS. OH, AND ABOUT WHO THE FORENSIC AUDITORS INTERVIEWS ALL COUNCILMEMBERS IF THEY WANTED TO. I SIGNED UP FOR IT. I DON'T KNOW IF ANYBODY ELSE THEY INTERVIEWED. I DON'T THINK I DID. YEAH, I WELL, I SIGNED UP FOR IT AND WHEN THEY INTERVIEWED ME, WELL THEN THAT'S WHEN I TURNED OVER TO THEM. THE $5 MILLION WITH THE MAINTENANCE OUTSOURCED MAINTENANCE. OKAY. AND I ALSO INTERVIEWED THE PERSON THAT TURNED IT IN AND I SENT THEM THE INTERVIEW. THE PERSON THAT TURNED TURNED THE MAINTENANCE $5 MILLION WITH THE MAINTENANCE OUTSOURCE. AND THAT WAS SOME CRIMINAL ACTIVITY, A POTENTIAL POTENTIAL CRIMINAL ACTIVITY. AND I, OF COURSE, SAID TO HIM, I SAY, YOU HOW MUCH? JUST YOU, YOU ARE 5 MILLION, $500,000 WAS OUT, WAS OUTSOURCED A PARTICULAR MAINTENANCE GROUP. AND HE SAID, NO, I STOPPED COUNTING AT THE ABUSE OF 500 MILLION. BUT I GOT TO THE MAINTENANCE. COMPILED RECORDS AND EVERYTHING FROM THE CITY MANAGER, CITY MANAGER, NOT THIS CITY MANAGER, BUT THE CITY MANAGER TURNED THAT OVER TO ME AND I TURNED IT ALL OVER TO THE FORENSIC AUDITORS, AND THEY WERE SURPRISED WHEN THEY CAME IN AND GAVE US AN OVERVIEW OF THINGS AND INDICATED A STRONG INDICATION THAT THEY DIDN'T WANT TO SAY THINGS PUBLICLY THAT AT THAT TIME. SO WE HAD TO VOTE TO BRING THEM BACK TO GO INTO CLOSED SESSION. COUNCIL VOTED IT DOWN EVERY TIME. THEY NEVER CAME BACK. OKAY. THANK YOU. COUNCILMEMBER. COUNCILMEMBER FRANK. YES, ONE OF THE QUESTIONS I WANTED TO ASK WAS ON THE UPCOMING COUNCIL MEETING, WE'RE GOING TO RECEIVE A REPORT FROM THE AUDIT THAT WE COMPLETED. THERE'S GOING TO BE A PRESENTATION OF THE AUDIT THAT WE JUST RECEIVED, AND I WANTED TO FIND OUT, WILL THAT HAVE ANY BEARING ON WHAT WE'RE DOING HERE? THEN THE OTHER I WANTED US TO CONSIDER THAT AND TO ASK THAT QUESTION IF MAYBE THERE WAS SOME INPUT CONCERNING THAT. AND THEN THE OTHER QUESTION THAT I WANTED TO ASK, BECAUSE WHEN WE'RE AS WE'RE SETTING THE SCOPE AND THE PARAMETERS, I WANTED TO ASK, WILL THE FORENSIC AUDIT CHECK THE INTERNAL CONTROLS THAT ARE PRODUCING OUR, OUR A, OUR A RATING? BECAUSE, YOU KNOW, THAT VALIDATES WHAT WE'RE DOING. SO I THINK CHECKING THOSE INTERNAL CONTROLS AS WELL. WELL, YOU KNOW, THAT THAT THAT'S, THAT'S THE WHOLE POINT OF IT. YOU KNOW, IF SOMEBODY'S DOING SOMETHING, THEY AIN'T GOT NO BUSINESS, THEN THEY NEED TO BE HELD ACCOUNTABLE. BUT AT THE END OF THE DAY, IF WE'RE DOING SOMETHING THAT CAN DAMAGE THAT RATING, IF SOMEONE COME IN AND LOOK AT IT, THEN WE'RE NOT HELPING OURSELVES. IF WE'RE OPERATING OUTSIDE OF THE ORDINANCE AND THE IN THE LOCAL GOVERNMENT CODE THAT GOVERNS FINANCING IN MUNICIPALITIES, YOU KNOW, AND A LOT OF TIMES THE PROBLEM WITH A LOT OF CITIES ARE CITIES GET INTO THE
[00:35:02]
UNDERSTANDING THAT WE DO THINGS THE WAY WE WANT, AS LONG AS WE APPROVE IT AS THAT. BUT THEY DON'T UNDERSTAND THAT THESE LOCAL GOVERNMENT CODES ARE ESTABLISHED BY THE STATE OF TEXAS FOR ALL MUNICIPALITIES TO MANAGE MONEY. SO WHAT THEY DO IS THEY SAY, WE'RE NOT GOING TO TELL YOU HOW TO SPEND YOUR MONEY. WE'RE GOING TO TELL YOU HOW MUCH MONEY TO SPEND, BUT THIS IS WHAT WE'RE GOING TO DO. WE'RE GOING TO PUT YOU IN THIS BOX. AND AS LONG AS YOU'RE WITHIN THAT BOX, YOU ARE USING TAXPAYER DOLLARS PROPERLY, YOU'RE ACCOUNTING FOR IT. THEN YOU HAVE THE GENERAL. ACCEPTABLE ACCOUNTING PRINCIPLES BY WHICH ALL GOVERNMENT ENTITIES ARE SUPPOSED TO BE ACCOUNTING FOR FUNDS AND STUFF. OUR ACR IS WHAT YOU'RE TALKING ABOUT. WHAT WE NEED TO GET THE RESULTS OF THAT IS A AUDIT WE GENERATE.AND WE BASICALLY HAVE TO DO IT ALL THE WORK AND STUFF. A LOT OF PEOPLE DON'T UNDERSTAND, BUT WITH A A F C R WHAT YOU'RE TALKING ABOUT, WE'RE GOING TO GET A CITY CAN ACTUALLY DO IT THEMSELVES USING THEIR OWN FINANCE DIRECTOR OR ANYBODY WHO IS A LICENSED ACCOUNTANT, CPA.
BUT THE REASON CITIES DO THE OUTSIDE FIRM TO COME IN AND LOOK AT THE REPORT AND WHAT THEY'RE DOING AND CHECK AND VERIFY IS SO THAT THEY COULD GET AN OUTSIDE OPINION ON THAT REPORT. SO OUR REPORT THAT WE'RE GOING TO GET FROM THE. AUDITING FIRM IS BASICALLY BASED ON US AND WHAT WE PREPARED FOR OUR ANNUAL AUDITS. WE THE ONE THAT PREPARED THAT REPORT, THEY DON'T. SO THAT'S HOW COME SOME PEOPLE SAY, WELL, WE WE'VE BEEN DOING GOOD EVERY TIME WITH THE AUDIT. YEAH, THAT AUDIT IS WHAT WE PREPARED ON OUR POLICIES AND PROCEDURES.
BUT IF SOMEONE ACTUALLY LOOKING AT WHAT WE DOING, ARE WE FOLLOWING THEM? THEY DON'T GO INTO PULLING THINGS LIKE IN A FORENSIC AUDIT. THEY DON'T DO THAT. THEY LOOK AT IT AND THEY VERIFY WHAT WE PRESENTED. SO THE AC FR IS A GOOD TOOL. BUT IF YOU WANT TO TAKE A LOOK AT YOU, FOLLOWING POLICIES AND PROCEDURES IS NOT A GOOD TOOL. SO ARE YOU SAYING TO ME, ARE YOU SAYING TO ME THAT WHEN WE HAVE AN AUDIT THAT THEY DON'T CHECK OUR INTERNAL CONTROLS? IS THAT WHAT YOU'RE SAYING TO ME? YEAH, I'M SAYING THAT THEY DON'T GO INTO THE DETAIL OF WHETHER YOU ARE FOLLOWING THIS, THAT WE ARE PAYING, THAT WE'RE MAKING OUR PAYABLES OUT IN 30 DAYS, THAT WE ARE CHECKING TO MAKE SURE ALL OF THE ALL OF THE INTERNAL CONTROLS THAT WE HAVE IN PLACE HERE IN THE CITY. YOU'RE SAYING THAT THAT THAT AUDIT DOESN'T COVER THAT? NO, I'M SAYING THAT THAT AUDIT IS BASED ON WHAT THEY PULL OUT. RANDOM CHECKING AND IT'S BASED ON WHAT WE PREPARE. WE PREPARE THAT AUDIT THE CITY IS RESPONSIBLE FOR PREPARING THE AUDIT REPORT AND STUFF. OKAY. AND I JUST EXPLAINED IT. WE DON'T HAVE TO HIRE A FIRM TO DO IT. ONCE WE COMPLETED THE A F, C, R AND WE SEND THE REPORT TO THE CONTROLLER, THAT IS WHAT'S GOING TO BE ON RECORD. BECAUSE EVEN DO WE, ALTHOUGH WE USE THE AUDITING FIRM, THE LETTER AND REPORT THAT IS FILED WITH THE COMPTROLLER OF THE STATE OF TEXAS IS SENT BY US. THANK YOU.
MISSING ME ON THAT, BUT I THINK WE'RE REQUIRED BY TO HAVE AN OUTSIDE FIRM TO DO THAT. I THOUGHT WE WERE NO, NO LAW. NO. THOSE THAT WE'RE GOING TO GET THE UPDATE ON ON THE NEXT. WELL, WELL, WELL WHEN YOU DO THE CFR, LIKE I SAID, ALL CITIES DO IT BECAUSE THEY DON'T WANT A REPORT GONE WITHOUT HAVING A CERTIFIED PERSON LICENSED ALSO DOING IT. OKAY, SO THEY SIGNING OFF AND THEY, AND THEY COMING IN AND THEY'RE GOING THROUGH IT. BUT IF YOU'RE LOOKING AT. OKAY, LET ME GIVE AN EXAMPLE. LET ME LET ME JUST GIVE AN EXAMPLE. OKAY, SO THAT YOU CAN SEE THE DIFFERENCE HERE. ALRIGHT, WE'RE DOING ALL THESE AUDITS. OKAY. BUT WHEN THEY'RE THROUGH, WILL YOU SEE IN THERE THAT YOU'RE PLACING ITEMS ON THE AGENDA THAT ARE NOT FUNDED IN YOUR BUDGET? AND YOU DON'T HAVE AN ORDINANCE AT THAT MEETING TO KNOW? I'M GIVING YOU AN EXAMPLE.
[00:40:01]
I CAN SHOW YOU WHY THAT REPORT IS NOT ONE. A FORENSIC AUDIT IS GOING TO LOOK AT THAT ITEM. SEE IF YOU HAD AN ORDINANCE AND SAY, NO, YOU SHOULD NOT HAVE IT. OKAY. SO IT'S TWO DIFFERENT AUDITS. OKAY. THAT'S WHY WHEN YOU LOOK AT THE SCOPE THAT THE. FIRM WROTE, IT WAS GENERAL, IT WAS GENERAL, AND IT WAS GENERAL FOR THE SIMPLE REASON THAT, YOU KNOW, YOU WANT TO BE ABLE TO LOOK AT DIFFERENT AREAS BASED ON WHAT PEOPLE WILL WANT TO SAY, YOU KNOW, YOU SEE. BUT YEAH, I THINK WE NEED TO ASK THE FINANCE, CAN WE HAVE THE FINANCE DIRECTOR, WE HAVE AN ACCOUNTANT, WE HAVE AN ACCOUNTANT IN THE AUDIENCE. ACCOUNTANT. YES. OH, CAN I ASK HER TO COME TO THE DAIS AND EXPLAIN THAT? EXPLAIN SOMETHING TO ME? SURE. I'M. I'M. ARE Y'ALL OKAY? I'M OKAY. WOULD YOU COME? YEAH. IT'S A WORKSHOP, SO COME. RIGHT. COME AND HELP US.I'M GOOD. COME AND HELP US. AND THEN I. AND THEN OUR OWN FINANCE PERSON. WE NEED HER TO.
YEAH. WE DO OUR. HEY. HOW ARE YOU? WHAT THEY'RE WORKING ON. FINE. JUST FOR THE RECORD, GIVE US YOUR NAME. OH, MAYOR. GO AHEAD, DO YOUR THING. I WAS GOING TO LET HIM BE THE MAYOR.
JUST. HEY, MAYOR. MAYOR. MAYOR. NO. GO RIGHT ON AHEAD. NO, I ASKED YOU. LET ME MAKE SURE YOU HAVE. THE MIC IS OPEN SO YOU CAN SPEAK AND GIVE YOUR NAME AND ADDRESS. FOR THE RECORD, I DON'T THINK THE MICS ARE. YEAH, YEAH. LET ME. WE GOT SOME HELP. WELL, MAYOR. WHAT? WE GOT A LICENSED CAR DRIVER. NO LICENSE. SOME SOMEBODY THAT'S LICENSED TO HANDLE THIS KIND OF BUSINESS, WHICH IS WHICH IS GOOD. I DIDN'T KNOW SHE WAS AN ACCOUNTANT. YEAH, SHE'S ACTUALLY A. HI. MY NAME IS LINDA BAKER. I LIVE AT 2710 EVERGREEN DRIVE IN PORT ARTHUR.
I'M A CPA, A FORMER FEDERAL FORENSIC ACCOUNTANT. AND SO I'VE DONE THIS A FEW TIMES BEFORE, AND I'M CONGRATULATING YOU ON YOUR OPTIONS TO BE ABLE TO CONSIDER THIS AND MAKE IT A GOOD THING FOR THE CITY OF PORT ARTHUR. WHAT CAN I DO TO ANSWER A QUESTION? WELL, YOU'VE HEARD THE DIALOG AND THE CONSIDERATIONS THAT ARE GOING ON RIGHT NOW. CAN YOU HELP ME UNDERSTAND WHAT COUNCILMAN YOU SAID IS TRYING TO SHARE WITH ME? BECAUSE IT'S NOT I'M I'M I'M I'M I'M KINDERGARTEN. OKAY. SO SO HELP ME TAKE CARE. AT LEAST YOU'RE ADMITTING IT. YEAH. WELL, I MEAN, YOU KNOW, YOU KNOW YOUR STRENGTHS AND YOU KNOW YOUR WEAKNESSES. SURE. UNDERSTOOD.
UNDERSTOOD. CLARITY. SHE BETTER NOT ASK ME ANYTHING ABOUT THEOLOGY, THOUGH. OH, THERE YOU GO. I'LL LET YOU HANDLE THAT. ALL RIGHT. SO SO WHAT HE IS SAYING IS, IS TRUE. IT WOULD NOT IT WOULD NOT DAMAGE THE RATING THAT THE CITY HAS. IT WOULD ACTUALLY, IF ANYTHING, HELP YOU MORE, ESPECIALLY WHENEVER YOU LOOK AT LET'S SAY WE GO THROUGH THIS FORENSIC AUDIT, IT COMES BACK WITH, YOU KNOW, SOME, SOME AREAS THAT YOU MAY NEED TO FOCUS ON TO, TO IMPROVE THE PROCESSES HERE IN THE CITY. THEN YOU CAN TAKE THAT. ONCE THOSE AREAS HAVE BEEN REMEDIED, YOU CAN TAKE THAT AND THEN EVEN APPLY FOR BETTER, MORE DIFFERENT FEDERAL FUNDING BASED ON THE FORENSIC AUDIT, BECAUSE IT WILL ACTUALLY HELP YOU GAIN, YOU KNOW, LEVERAGE, IF YOU WILL, AND IT WILL NOT HAVE ANYTHING TO DO TO DESTROY OR TO DEVIATE FROM THE CURRENT RATING THAT THE CITY HAS. SO THERE ARE TWO DIFFERENT THINGS THAT THAT GO HAND IN HAND. BUT TO BETTER STRENGTHEN THE COMMUNITY, HAVE MORE INSIGHT. I UNDERSTAND, AND AS I LOOK AROUND, IT'S VERY SAD. AND I AND I SEE THAT RIGHT. BUT PEOPLE, EVEN IF THEY DON'T SHOW UP. BUT THERE'S SOMETHING IN WRITING, PEOPLE LEARN AND UNDERSTAND THINGS THAT ARE IN WRITING MUCH MORE THAN JUST WHAT THEY HEAR. AND SO REALLY, HONESTLY, YOU DOING THIS NOT ONLY MAKES SURE THAT YOUR HOUSE IS CLEAN, BUT THEN THOSE OF US WHO DO COME TO THE MEETING, WE CAN SAY, HEY, LOOK, THIS IS WHAT THE CITY IS DOING. THIS IS WHAT THE COUNCIL MEMBERS HAVE DECIDED. THIS IS WHAT THEY'RE DOING TO HELP IMPROVE THE CITY, TO HELP IMPROVE YOUR QUALITY OF LIFE HERE. AND, AND IT HELPS TO, TO, TO STRENGTHEN YOUR ROLES IN THE COMMUNITY. OKAY. SHE WAS EXPLAINING, I'M SORRY. I'M GOING TO TAKE THE LIBERTY OF JUST ASKING ABOUT THE INTERNAL, THE AUDIT THAT WE HAVE AN AUDIT COMING UP AND THEY'RE GOING TO GIVE US A SYNOPSIS OF WHAT THEY THEY THE RESULTS OF WHAT THEY'VE ENCOUNTERED. SO THE QUESTION IS WITH THAT AUDIT, FROM WHAT I UNDERSTAND FROM OUR COUNCIL MEMBER, FRANK, IS THE DIFFERENCE BETWEEN THE TWO. AND THEN HOW THAT AUDIT, WHAT IT DOES FOR THE CITY THAT WE'RE ABOUT TO GET A REPORT ON COMES TOGETHER WITH THE FORENSIC AUDIT. WHAT IS THE SCOPE OF THAT AUDIT THAT THE
[00:45:03]
DISINTERESTED THIRD PARTY IS PERFORMING? OUR FINANCE DIRECTOR IS RIGHT BEHIND YOU.CAN YOU TELL US, LYNN? THANK YOU. GOOD AFTERNOON. MAYOR COUNCIL MEMBERS. LYNN BOSWELL, YOUR DIRECTOR OF FINANCE. YES. SO THE AUDIT THAT WE JUST COMPLETED ON TIME WILL BE PRESENTED BY OUR INDEPENDENT AUDITOR WHO'S REQUIRED TO AUDIT OUR BOOKS IN THEIR MAIN FOCUS IS, DID WE FOLLOW THE PROCEDURES WE NEEDED TO FOR PROPER ACCOUNTING. THEY HAVE ACCOUNTING RULES THAT WE THEY ARE REQUIRED TO ENSURE THAT WE HAVE FOLLOWED. THEY TAKE INDEPENDENT SAMPLING BASED ON THE INFORMATION THEY HAVE. IF THEY DON'T LIKE WHAT THEY SAW OR IF THERE ARE BIG VARIATIONS, I'M REQUIRED TO SEND THEM AN EXPLANATION FOR EACH AND EVERY VARIATION THAT THEY ARE REQUESTING, WHETHER IT BE ON THE EXPENSE SIDE OR ON THE REVENUE SIDE. WE DO THIS EVERY YEAR. I'VE HAD TO DO EXPLANATIONS. SOMETIMES WE'LL GO AND IT'S A 1,000% VARIANCE IS BECAUSE MAYBE WE JUST SOLD LAND THAT ONE YEAR AND WE'RE NOT GOING TO GET THIS REVENUE NEXT YEAR. IT'S NOT A GUARANTEE. SO ALL OF THAT IS TESTED ON AN ANNUAL BASIS, AND IT COVERS A MYRIAD OF THINGS. I JUST WHERE WE WERE JUST HAVING A, A MEETING TODAY, AND WHAT WE WERE MEETING ABOUT IS WHAT WENT RIGHT, WHAT WENT WRONG WITH OUR THE WAY THAT WE DID THE AUDIT SO WE COULD BE MORE PREPARED FOR NEXT YEAR AND CONTINUE TO BE ON TIME FROM HERE ON OUT. YES, THEY ARE OUR NUMBERS. THEY QUESTION THOSE NUMBERS BECAUSE THEY HAVE A PERCENTAGE THAT IS ACCEPTABLE TO THEM. THEY ALSO HAVE REQUIREMENTS FOR THEIR LICENSURE, AND THEY HAVE REQUIREMENTS FOR THEIR COMPANY. ALSO, AS AUDITORS OF OUR GOVERNMENT FINANCES, THAT'S WHAT IT IS. IS IT PROCEDURES? NO. IS IT PROCESS? NO. IT'S SIMPLY WHERE ARE WE FINANCIALLY? DID WE SPEND WHERE WE WERE SUPPOSED TO SPEND? THEY WILL ASK FOR SAMPLE EXPENDITURES AND THEY WILL ASK FOR SAMPLE REVENUE. AND WE NEVER KNOW WHAT THEY ARE. THEY'RE VERY RANDOM. THEY WILL ALSO ASK FOR SAMPLE UTILITY BILLS. SO THEY GO THROUGH ALL OF THAT. THEY HAVE THEIR OWN SAMPLING TECHNIQUE. EVERY AUDITOR DOES IT THEIR OWN WAY, AND IT IS BASED ON YES, WE'VE GIVEN THEM THE INFORMATION. IF WE CAN'T EXPLAIN IT, UNFORTUNATELY, THEN THEY HAVE TO REPORT TO YOU THAT IT WAS NOT EXPLAINED AWAY. IF THERE ARE VARIANCES, BUT IT'S NOT MATERIAL, WHICH MEANS IT'S OKAY, BUT JUST WATCH IT. THE NEXT TIME THEY WILL LET US KNOW THAT. AND SO SOMETIMES THERE ARE THINGS THAT CAME IN IF WE DON'T HAVE A RECEIPT FOR IT AND THERE'S NO NOTHING IN THERE, WE'RE GOING TO BE NOTED BY THE AUDITOR THAT WE DID NOT HAVE EVERYTHING THAT WE NEEDED FOR THEM, AND THAT'S USUALLY NOT A GOOD THING. SO THOSE ARE THE THINGS THAT THEY ACTUALLY DO. AND IN THE LETTER THAT THEY GAVE YOU, IF YOU DON'T HAVE IT, YOU WILL HAVE IT FOR THAT MEETING. THERE'S A SPECIFIC LETTER THAT'S JUST TO YOU GUYS AND IT TELLS YOU WHAT THE SCOPE WAS. AND ALSO IN THE AUDIT ITSELF, IT TELLS YOU WHAT THEIR ACTUAL SCOPE WAS, AND THAT IS WHERE THEY WORK WITHIN IS JUST THAT SPECIFIC SCOPE FOR THE FINANCIAL HEALTH OF OUR CITY. OKAY. IS THAT TOO MUCH? OH NO, THAT WAS PERFECT. I THINK IT WAS RIGHT ON, I GOT IT. SO THAT'S, THAT'S WHAT WE NEEDED KIND OF GIVING US SOME CLARITY GOING FORWARD. YES, MA'AM. WHAT THAT MEANS FOR ASSISTANCE, I'D LIKE TO SAY SO THAT'S A GAAP AUDIT GENERALLY ACCEPTED ACCOUNTING PRINCIPLE AUDIT, WHICH IS WHICH IS TO DO SO SO THAT YOU CAN GO AHEAD AND AND FILE THAT YOUR FINANCIALS, WHATEVER THE TAXES ARE FILED, FINANCIALS ARE FILED, THAT EVERYTHING HAS BEEN AUDITED BY THE DISINTERESTED THIRD PARTY. SO THAT'S PERFECT. THE FORENSIC ACCOUNTING THAT THEY'RE PROPOSING. YOU CAN'T YOU HAVE MY APOLOGIES. THE FORENSIC ACCOUNTING THAT YOU'RE PROPOSING GOES BEYOND THAT BECAUSE A GAP OF AUDIT IS PERFECT. AND IT'S NECESSARY EVERY YEAR, EVERY YEAR, CORPORATIONS OR ANY GROUPS THAT ARE LARGER THAN X AMOUNT OF, OF, OF DOLLARS PER YEAR, WHETHER THEY'RE PUBLIC, WHETHER THEY'RE PRIVATE, WHETHER THEY'RE GOVERNMENT RUN, HAVE TO HAVE THESE GAAP AUDITS. AND THAT'S GREAT. AND, BUT WHAT YOU ARE PROPOSING GOES BEYOND THAT. SO TO ANSWER YOUR QUESTION, YES, THE AUDIT THAT THAT SHE HAS JUST DESCRIBED HAS BEEN PERFORMED IS REQUIRED AND NECESSARY EVERY YEAR. THE FORENSIC AUDIT WOULD BE SOMETHING THAT WOULD COME ONCE EVERY SO MANY YEARS AND THEN COVER MORE IN DEPTH AREAS THAT MAYBE, MAYBE YOU MIGHT THINK ARE CONCERNS, MAYBE TURNS OUT THEY'RE NOT. BUT THAT WAY YOU CAN GO A LITTLE BIT DEEPER THAN JUST WHAT THE FINANCIALS HAVE.
[00:50:05]
THANK YOU, THANK YOU. APPRECIATE YOU. THANK YOU. THANK YOU LYNN. ALL RIGHT. I HAD COUNCILMEMBER LOUIS LIGHT ON OH THAT'S LEFTOVER COMMENT. OH OKAY. I'M I DIDN'T I HADN'T COMMENTED YET. I GOT I JUST WANT TO WANT ME TO TALK. YES, SIR. IT'S YOUR TURN, LOUIS.OKAY. Y'ALL CAN SEE THAT BETTER THAN I CAN WRITE UP. YEAH. IT'S THE POINT. I WANT TO THE POINT I WANT TO MAKE THE THE MAINTENANCE. INFORMATION I GOT FROM THE PREVIOUS CITY MANAGER WHEN THE HIS SUPERINTENDENT TURNED THAT INFORMATION INTO HIM. THE INTERESTING THING, WHEN HE GOT TO THE DOOR, HE SAID, CITY MANAGER, THERE'S ONE THING I HATE IS A THIEF. BUT THE LAW, RECIPROCITY. YOU HEARD OF THAT? EVERYBODY DON'T KNOW ABOUT THE LAW OF RECIPROCITY.
WHAT. GO AROUND, COME AROUND. THE AUDIT CAUGHT HIM FOR ABUSING THE RECORDS. HE WAS TERMINATED. OKAY, COUNCILMEMBER, I'LL GO TO COUNCILMEMBER BECKHAM AND WAIT TO. COUNCILMAN KINLAW COMES BACK. THANKS. I JUST I WAS GOING BACK THROUGH THE BUDGET AND SOME OF MY NOTES.
AND THERE'S ONE OTHER AREA THAT I WOULD LIKE TO ADD UNDER THE SOLID WASTE FUND, THE LANDFILL OPERATION? YES, MA'AM. A LOT OF ACTIVITY. THANK YOU. OKAY, SO EVERYBODY LISTED THE SCOPE. I MEAN, YOUR SCOPE IS IDENTIFIED. THEN, I GUESS. IS THERE ANYBODY ELSE? COUNCILMAN KINLAW IS AWAY FROM THE DAIS. SO ARE YOU GOOD? OKAY. I DON'T HAVE A SCOPE. SO JUST TO BE SURE WE DIDN'T MISS ANYTHING. NO. YOU SURE? WELL, THAT'S WHAT I WANTED TO SAY. BASED BASICALLY. THAT'S THAT'S WHAT WE'RE HERE FOR, WHAT WE WOULD LIKE TO LOOK AT. SO ONCE WE AGREE UPON THESE THINGS AS A COUNCIL, THEN THE MANAGING STAFF SHOULD BE ABLE TO PUT THAT SCOPE TOGETHER BECAUSE WE'VE BASICALLY GIVEN THE AREAS WE'VE LAID THE REQUIREMENT DOWN FOR THEM REPORTING TO COUNCIL.
AND MAYOR PRO TEM, LET'S MAKE SURE SOMEBODY CITY SECRETARY, YOU'RE GETTING THOSE ALL OF THOSE OR YOU GOT IT. OKAY. BECAUSE I WANT TO MAKE SURE I'M NOT THE SECRETARY TODAY. SO I WANT TO MAKE SURE I'M USED TO WRITING AND DOING STUFF, BUT I'M LIKE, OH, I HOPE THEY'RE NOT RELYING ON ME TO MAKE SURE I HAVE THIS SCOPE DONE. SO I'M LIKE, I DON'T HAVE IT WRITTEN.
I GOT SOME OF THE ERRORS FROM MY NOTES, BUT I WANT TO MAKE SURE WE OFFICIALLY HAVE IT ON THE RECORD, THOSE SCOPES. AND IF YOU COULD KIND OF REPEAT THOSE AFTER MAYOR PRO TEM FINISHES, REPEAT THOSE SCOPES SO WE CAN BE CLEAR ON IT AND TAKE AND GO FROM THERE. OKAY.
THANK YOU. I MEAN, YOU WANT TO REPEAT IT? OKAY. CAN YOU NEED TO BE TOGETHER? ALL RIGHT. LET ME LET HER REPEAT IT. OKAY. CAN YOU REPEAT THOSE AREAS JUST TO BE SURE WE'RE WE'RE GOOD. CITY SECRETARY. YES. DO YOU HAVE YOUR LIGHT ON? NO. YOUR MIC NOT WORKING. OR SHE CAN. CAN YOU HEAR ME NOW? ARE WE GOOD? OKAY. I HAVE FINANCE, PURCHASING, HUMAN RESOURCES, OPEN MEETINGS, ACT, PLEASURE ISLAND'S STREETS PROGRAM AND PURCHASING WAS MENTIONED TWICE. OKAY, LET'S.
NO, NO. LET'S GO ONE MORE TIME. FINANCE. LET'S DO POLICY AND PROCEDURES BECAUSE YOU'VE SPECIFIED IT, RIGHT? RIGHT. OKAY. POLICIES AND PROCEDURES. THAT OF FINANCE. OKAY. YEAH.
AND THAT'S WHY I WANT TO MAKE SURE WE REPEAT IT ON THE RECORD PURCHASING AND THEN HUMAN RESOURCES. OPEN MEETINGS ACT. YEAH. HUMAN OPEN MEETINGS, ACT PLEASURE ISLAND PARKS AND REC AND PLEASURE ISLAND. I THINK SHE WAS SAYING SPECIFICALLY UNDER PARKS AND REC. BUT THEY'RE NOT THEY'RE NOT THERE. HE'S A DIVISION ALL BY HIMSELF. YEAH. SO IT WOULD JUST BE PLEASURE ISLAND. PLEASURE ISLAND ROAD, BOTH STREETS, PROGRAM, STREETS PROGRAM AND THE LANDFILL. AND ALSO MAYOR. YES, I THINK COUNCILMAN LEWIS MENTIONED OUTSOURCED MAINTENANCE INVOICES, OUTSOURCED MAINTENANCE. I DON'T KNOW, I DON'T KNOW WHAT THAT FALLS UNDER. I DON'T KNOW WHAT IT FALLS UNDER, BUT I DID WRITE IT DOWN UNDER PURCHASING. OKAY.
I DID WRITE IT DOWN. YES. DO YOU DO KNOW THAT? YES. OKAY. ALL RIGHT. THAT'S ON THE POLICIES AND PROCEDURES. ALRIGHT. GOOD STUFF. OKAY. THAT'S SEVEN SEVEN AREAS. IT'S LIKE SEVEN. JUST ONE MORE TIME FOR THE RECORD FOR. YES. I'M SORRY. NO I'M SORRY Y'ALL. I'M
[00:55:03]
A RECORD PERSON. I WANT TO GET IT RIGHT. THIRD TIME FINANCING POLICY, FINANCE POLICIES AND PROCEDURES, PURCHASING HUMAN RESOURCES, OPEN MEETINGS, ACT, PLEASURE, ISLAND STREETS PROGRAM, LANDFILL AND WITHIN PURCHASING OUTSOURCED MAINTENANCE INVOICES. YES. OKAY.GOT IT. ALL RIGHT, ALL RIGHT, ALL RIGHT. SEVEN FIELDS. SO. ALRIGHT. ARE WE GOOD Y'ALL, WITH ESTABLISHING THIS NOW OUR NEXT STEP IS FIVE YEARS. FIVE YEARS. OH, FOR FIVE YEARS, 20, 20, 21, 21 TO 2025. YES, SIR. NO, YOU GOTTA COUNT IT. YOU HAVE TO COUNT. YEAH. GLORIA.
SCOPE. OKAY, SO NOW, STAFF, WHAT OUR NEXT MOVE IS THAT STAFF TAKES THIS AND ESTABLISHES THE NEXT MEETING. NEXT, NEXT MEETING RESOLUTION. IT SHOULD BE A RESOLUTION WITH THE SCOPE TO GIVE. AND WE SHOULD GET THE SCOPE AS A BACKGROUND SO THAT WE CAN ALL READ THE SCOPE AND KNOW WHAT THE SCOPE IS GOING TO BE. SO IF WE APPROVE THIS RESOLUTION THEN THEY WOULD GO OUT. NOW FOR FORBID RFQ, RFQ. OKAY. ALL RIGHT. OKAY. ALRIGHT. ALL OKAY.
ALRIGHTY THEN. WE ARE READY FOR ADJOURNMENT. SECOND, ANY DISCUSSION? IT'S DONE. I NEED A MOTION FOR ADJOURNMENT. OKAY. MOVED AND I GOT A SECOND. ANY DISCUSSION? ALL IN FAVOR, SAY AYE. THE AYES HAVE IT. WE ADJOURN THIS MEETING AT
* This transcript was compiled from uncorrected Closed Captioning.