K. 2025- 018 Chamber of Commerce Update, discussion, and action regarding available sponsorship options with the Princeton Lowry Crossing Chamber of Commerce. Presented by Beth Wilhite with the Princeton Lowry Crossing Chamber of Commerce.

[K. 2025- 018 Chamber of Commerce Update, discussion, and action regarding available sponsorship options with the Princeton Lowry Crossing Chamber of Commerce. Presented by Beth Wilhite with the Princeton Lowry Crossing Chamber of Commerce.]

WE HAVE 2025-018, CHAMBER OF COMMERCE, UPDATE DISCUSSION AND ACTION REGARDING AVAILABLE SPONSORSHIP OPTIONS.

I GUESS IT'S THAT TIME OF YEAR.

WITH PRINCETON LOWERY CROSSING CHAMBER OF COMMERCE, PRESENTED BY BETH WILLHITE, WITH THE PRINCETON LOWRY CROSSING CHAMBER OF COMMERCE.

>> GOOD EVENING.

MR. CHAIR AND BOARD MEMBERS.

BETH WILLHITE, PRESIDENT CEO OF THE PRINCETON LOWRY CROSSING CHAMBER OF COMMERCE.

YES, SIR, I CAN.

I APPRECIATE THE OPPORTUNITY TO SHARE WITH YOU ALL SOME THINGS THAT ARE GOING ON IN THE CHAMBER AND JUST MAKE SURE WE'RE ALL ON THE SAME PAGE AND YOU'RE UP TO DATE ON THINGS THAT ARE GOING ON.

FIRST OF ALL, I WANT TO THANK YOU FOR CONTINUING TO BE A CHAMBER MEMBER AND PARTNERING WITH US.

IT SHOWS THE BUSINESS COMMUNITY THAT THE COMMUNITY DEVELOPMENT CORPORATION BELIEVES IN WHAT WE'RE DOING AS AN ORGANIZATION, WHAT DAY AS SMALL BUSINESS OWNERS ARE DOING AS WELL.

YOU HAVE TAKEN ADVANTAGE OF SEVERAL OF YOUR BENEFITS, AND I'D LIKE TO SEE THAT OF ANY OF OUR MEMBERS.

THERE'S JUST ONE LEVEL ABOVE YOU ALL.

THERE ARE A FEW MORE BENEFITS ON THAT AS WELL AS JUST SHOWING FURTHER SUPPORT OF WHAT THE CHAMBER OF COMMERCE DOES IN THE COMMUNITY.

SOME EVENTS THAT I DO WANT TO.

>> I'M SO SORRY. MS. WALKER, ARE WE SUPPOSED TO BE ABLE TO SEE THAT ON OUR COMPUTER SCREENS? NO, MA'AM. HEY, MAN. MY NECK HURTS.

[00:30:17]

>> I'M MORE THAN WELCOME IF YOU GUYS WANT TO TURN AROUND, NOT LOOKING.

>> ENJOY YOUR SHORT INTERMISSION.

>> [INAUDIBLE].

>> CAN I INTERRUPT YOU GUYS REAL QUICK?

>> [INAUDIBLE].

>> IF Y'ALL COULD TURN ON YOUR MICROPHONES BECAUSE WE'RE STILL [INAUDIBLE]. [OVERLAPPING]

>> SORRY, THIS WAS. [OVERLAPPING]

>> THERE YOU GO.

>> I WAS ASKING ABOUT DONATIONS, AND THERE WAS A LINK THAT WAS SENT OUT TO HAVE YOUR DONATIONS PUT IN, AND I WAS WONDERING IF YOU HAD TO CLASSIFY ANYTHING OR IF THE DONATION WENT STRAIGHT TO THE BACK TO SCHOOL BADGE, AND I WAS JUST ASKING BECAUSE OF MY OWN SELF. SORRY.

>> IT WENT STRAIGHT TO THE BACK TO SCHOOL BATCH.

>> YOU'RE GOING TO HAVE TO TURN AND LOOK AT THE SCREEN.

THE WAY THIS IS SET UP IS THAT THE LECTERN IS NOT CONNECTED TO THE SCREEN, DESHAWYNA'S COMPUTER IS.

IN ORDER TO PROJECT IT ONTO YOUR DESKTOP, IT WOULD HAVE HAD TO BE TRANSFERRED ON HER LAPTOP.

APOLOGIES. SORRY, BETH, BUT T THEY'RE GOING TO HAVE TO TURN THEIR HEADS.

>> THAT'S FINE. YOU GUYS CAN LOOK AT THE SCREEN NOW.

>> THIS IS MY GOOD SIDE.

>> FANTASTIC.

A COUPLE OF EVENTS THAT I DID WANT TO SHARE WITH YOU ALL.

EVERY MONTH, THE SECOND WEDNESDAY, WE HAVE A LUNCH AND LEARN, AND EVERY THIRD TUESDAY, WE HAVE A BUSINESS AND BREAKFAST.

IF YOU HAVE ANY OPPORTUNITY TO ATTEND EITHER ONE OF THOSE, WE WOULD LOVE TO SEE YOU AS A CHAMBER MEMBER.

I DO WANT TO SAY PERSONALLY AND PROFESSIONALLY, I THANK MS. WALKER, FOR THE ONES THAT SHE HAS BEEN ABLE TO ATTEND.

EVERY TIME THAT SHE HAS BEEN THERE, OR I'M SORRY, THAT YOU HAVE BEEN THERE.

IT HAS BEEN MENTIONED BY A BUSINESS OWNER THAT IT WAS NICE TO MEET HER, TALK TO HER.

THEY FEEL A CONNECTION TO THIS DEPARTMENT.

THEY FEEL HEARD AS BUSINESS OWNERS, AND SO IF YOU EVER ARE ABLE TO MAKE YOURSELF ACCESSIBLE, JUST SO THEY KNOW YOU ALL AND CAN HAVE THAT CONNECTION, WE WOULD LOVE TO SEE YOU, AND, OF COURSE, AS A CHAMBER MEMBER, WE WOULD LOVE TO SEE YOU BE A PART.

>> I'LL BE THERE.

>> THANK YOU. GRAND OPENINGS AND RIBBON CUTTINGS, THOSE ARE WAYS THAT WE CAN CELEBRATE SMALL BUSINESSES.

WE ENCOURAGE ALL OF THEM TO DO IT, ALLOWS THEM TO GET PUBLICITY, AND EVERYBODY LIKES A GOOD CELEBRATION.

ANYTHING THAT YOU ALL ARE ABLE TO ATTEND, WE WOULD LOVE TO SEE YOU AT ANY OF THOSE.

>> QUICK QUESTION ON THAT, THOUGH.

WHAT IS THE BEST WAY FOR US TO KEEP UP WITH THE EVENTS GOING ON WITH THE CHAMBER? DO YOU GUYS SEND OUT ANYTHING?

>> WE DO. WE HAVE AN EMAIL NEWSLETTER THAT GOES OUT EVERY MONTH AND YOU WILL SEE A SLIDE ABOUT THAT.

IF YOU DO NOT RECEIVE IT, WE'D LOVE TO HAVE YOU SIGN UP AND GET THAT.

FOLLOWING US ON SOCIAL MEDIAS AND FOR THOSE THAT AREN'T ALLERGIC TO SOCIAL MEDIA, WOULD LOVE TO HAVE YOU DO THAT AS WELL.

WE TRY TO POST THOSE IN PLENTY OF TIME FOR PEOPLE TO ATTEND, BECAUSE WE WANT PEOPLE TO SUPPORT OUR BUSINESSES.

THE CHAMBER IS ALSO INVOLVED IN THE COMMUNITY AS MANY WAYS AS WE CAN BE.

WITH THE CITY WE PARTNERED ON THE DAY OF PURPOSE, WE ALSO HELPED ON THE EARTH DAY CLEANUP BECAUSE WE WANT PRINCETON TO LOOK BEAUTIFUL.

BEING A PART OF THE PRINCETON CEMETERY WHEN THEY RECEIVED THEIR HISTORICAL MARKER, THERE WAS A LOT OF WORK THAT WENT INTO THAT, AND SO TO BE A PART OF THAT AS A CHAMBER,

[00:35:02]

AND WE WERE ABLE TO PROVIDE SOME REFRESHMENT AND FANS BECAUSE IT WAS HOT THAT DAY.

AS A CHAMBER, WE PLACE FLAGS AT THE CEMETERY FOR THE VETERANS ON VETERAN'S DAY AND MEMORIAL DAY.

WE HAVE NOT ONLY CHAMBER MEMBERS DO THAT, WE HAVE THE COMMUNITY THAT COMES OUT BECAUSE THEY WANT TO BE A PART IN HONORING THOSE THAT HAVE DONE SO MUCH FOR US.

WE ALSO ARE ACTIVE WITH TOYS FOR TOTS, AND WE SUPPORT THE PRINCETON ISD ANGEL TREE.

LOTS OF TOYS COME IN OUR OFFICE, SO THEY MAY GET PRE-PLAYED WITH A LITTLE BIT, I'M NOT GOING TO LIE, BUT IT IS GOOD TO BE ABLE TO GIVE BACK IN THAT WAY.

THE CLUB, SO WE ARE ABLE TO GIVE BACK TO THE COMMUNITY IN THAT WAY.

AT THE ONION FESTIVAL, WE HAD SEVERAL CHAMBER MEMBERS THAT WERE A PART, SO IT WAS GOOD TO GET AROUND AND SEE ALL OF THEM AND JUST SUPPORT WHAT THEY'RE DOING AS BUSINESS OWNERS.

THREE BIG EVENTS THAT WE HAVE THAT WE WERE JUST DISCUSSING IS THE BACK TO SCHOOL BASH.

THAT IS ONE OF THE REASONS THAT WE'RE HERE THIS EVENING.

WE APPRECIATE YOUR DONATION LAST YEAR OF $2,000.

HERE'S SOME PICTURES OF WHAT THAT WENT TO.

WE WERE ABLE TO GIVE AWAY ALL 2,000 BACKPACKS.

PRINCETON FAMILY EYE CARE, WHO'S A CHAMBER MEMBER, PROVIDES THE FREE VISION SCREENINGS.

THEY DID OVER 150 OF THOSE.

ANOTHER CHAMBER MEMBER, SPORT CLIPS, ALONG WITH CATE CENTER, DID OVER 120 FREE HAIRCUTS.

I CAN'T DO THIS BY MYSELF, SO IT WAS A COLLABORATION OF OVER 40 DONORS, AND JUST SO YOU HAVE A LITTLE IDEA OF WHAT GOES ON THAT DAY IN A TWO-HOUR SPAN, THERE WERE OVER 3,000 PEOPLE THAT CAME THROUGH THE MIDDLE SCHOOL THAT DAY.

IF YOU HAVE NEVER BEEN, MS. PETTIS IS SHAKING HER HEAD, SHE PROBABLY SAW ALL 3,830-SOMETHING, IT IS SOMETHING TO BEHOLD.

THERE'S A LOT GOING ON.

BUT WE HAVE OPPORTUNITIES FOR BUSINESSES, NOT ONLY CHAMBER MEMBERS, ANY BUSINESS, CAN BE A VENDOR AT THAT EVENT, THERE'S NO COST.

WE DO ASK FOR A DONATION TO THE BASH.

EVERY DIME THAT IS BROUGHT FORTH FOR THIS ENDEAVOR GOES TO THE BACK TO SCHOOL BASH TO FILL THOSE BAGS, AND THEN OBVIOUSLY DONATIONS THAT WE ACCEPT.

OUR GOAL THIS YEAR IS $20,000 BECAUSE THE PRICE OF EVERYTHING HAS GONE UP.

WE TRY TO ADD A NEW GRADE EVERY YEAR TO GET CLEAR BACK PACKS BECAUSE NOT ONLY DOES THE SCHOOL REQUIRE THOSE AT EVENTS, BUT THE CITY EVENTS REQUIRE A CLEAR BAG AS WELL, SO WE WOULD LOVE FOR THE STUDENTS TO USE THOSE MORE THAN JUST TO TAKE THOSE SUPPLIES HOME.

WE'RE TRYING TO MAKE THINGS PRACTICAL AS WELL.

BUT IT'S A 9:00-11:00 ON JULY 26TH.

BEFORE IT GETS TOO HOT, WE HAVE A CHAMBER MEMBER THAT IS A DJ AND THEY'RE GOING TO BE THERE THIS YEAR, SO IT'S GOING TO BE A FUN TIME FOR THE 3,000 OF US TO PARTY TOGETHER.

WOULD LOVE TO SEE YOU THERE OR AT LEAST CRUISE BY AND SAY HI, IF YOU HAVE, OR BE THERE WITH US IN THE MIDDLE OF THE FUN.

WE ALSO HAVE THE GOLF TOURNAMENT, WHICH THAT IS SOMETHING THAT YOU ALL HAVE PARTICIPATED IN IN THE PAST.

YOUR CHAMBER MEMBERSHIP GIVES YOU A GOLF TEAM THAT IS SET FOR OCTOBER 24TH, WOULD LOVE TO SEE YOU GUYS PARTICIPATE AGAIN.

IF YOU'RE NOT A GOLFER, YOU CAN COME HANG OUT WITH ME BECAUSE I DON'T GOLF EITHER, DRIVE AROUND, GIVE WATER, HECKLE A FEW GOLFERS, IT'S A FUN DAY.

A PORTION OF THE PROCEEDS FROM THAT DAY DOES GO TO A NONPROFIT.

THAT HAS NOT BEEN DECIDED ON YET, BUT THAT IS NOT JUST FOR THE CHAMBER, WE DO AGAIN WANT TO GIVE BACK IN SOME WAY.

>> WE WILL HAVE A TEAM TO CHEER.

>> I FIGURED.

>> THERE YOU GO. [LAUGHTER] YOUR CHAMBER MEMBERSHIP ALSO ALLOWS YOU A TABLE AT OUR ANNUAL BANQUET AND CASINO NIGHT.

SOME OF YOU WERE ABLE TO ATTEND THIS YEAR.

IT AGAIN IS A REALLY FUN EVENING.

WE HAVE A SILENT AUCTION AND SOME CASINO GAMES.

WE PARTNER WITH THE VFW EVERY YEAR.

THEY HELP US WITH SERVING OF THE FOOD.

THIS YEAR, THEY ALSO HELPED ME FIND A HOME FOR THE FOOD THAT WAS LEFTOVER.

LIKE I SAID, I CAN'T DO ANY OF THIS BY MYSELF.

WE WEREN'T CREATED TO DO THINGS THAT WAY.

IT'S THE SAME IN THE BUSINESS COMMUNITY.

WE NEED ONE ANOTHER, HENCE AN ORGANIZATION LIKE THE CHAMBER TO HELP US IN NETWORKING, BUT JUST SUPPORTING ONE ANOTHER.

THE BUSINESS CENTER IS UNDER THE PRINCETON LOWRY CROSSING CHAMBER FOUNDATION, AS IS THE BACK TO SCHOOL BASH.

THAT IS WHERE THE PRINCETON LOWRY CROSSING CHAMBER OFFICE IS, AS WELL AS SIX OTHER BUSINESSES.

FOUR OF THESE WERE BROUGHT TO PRINCETON BECAUSE OF THIS FACILITY.

IT'S A SPACE WHERE SMALL BUSINESSES CAN LEASE AN OFFICE,

[00:40:03]

BUILD THEIR BUSINESS IN HOPES MOVE ON TO A BIGGER SPACE WITHIN PRINCETON, OF COURSE.

BUT IT'S GOOD TO HAVE EVERYBODY THERE TOGETHER.

WE DON'T WORK TOGETHER, BUT IT IS NICE TO TAKE BREAKS WITH ONE ANOTHER AND ENCOURAGE AND TALK THROUGH THE DAY OR VENT ABOUT THE DAY OR WHATEVER, BUT IT'S JUST NICE THAT YOU'RE NOT ALONE IN THIS ENDEAVOR OF BUILDING A BUSINESS.

ANOTHER PARTNERSHIP THAT WE HAVE IS WITH THE SCHOOL DISTRICT.

ALL THE ARTWORK THAT HANGS IN THE BUSINESS CENTER IS DONE BY PRINCETON ISD STUDENTS.

THAT ARTWORK IS AUCTIONED OFF EVERY YEAR.

THAT MONEY GOES BACK INTO THE ART DEPARTMENT TO HELP THEM WITH SUPPLIES AND THINGS.

NOT ONLY DO WE GET NEW ART EVERY YEAR, BUT THE STUDENTS GET TO HAVE THEIR AMAZING TALENT DISPLAYED FOR PEOPLE TO SEE.

IF YOU HAVEN'T BEEN BY, SWING BY, TAKE A LOOK, IT IS AMAZING.

IF YOU ARE A BUSINESS OWNER, AS SOME OF YOU ARE, WE WOULD LOVE TO HAVE YOU JOIN THE CHAMBER.

IF YOU ARE NOT, IF YOU HAVE A NONPROFIT, NONPROFITS CAN JOIN THE CHAMBER AS WELL.

AGAIN, THIS IS JUST AN OPPORTUNITY FOR US TO COME TOGETHER AS A COMMUNITY, WORK TOGETHER, ENCOURAGE ONE ANOTHER, AND THEN DO SOMETHING AMAZING FOR THE COMMUNITY AND THOSE AROUND US.

LASTLY, I DID MENTION THE NEWSLETTER.

THERE IS A QR CODE THERE, IF YOU WOULD LIKE TO SCAN IT, OR THEN YOU ARE MORE THAN WELCOME TO EMAIL US AT THE OFFICE.

WE'D BE HAPPY TO PUT YOU ON THAT EMAIL LIST.

GOES OUT THE FIRST BUSINESS DAY OF EVERY MONTH, AND WE TRY TO GIVE YOU WHAT'S GOING ON THIS MONTH AND A FEW THINGS FOR THE NEXT MONTH, IF WE KNOW WHAT THOSE ARE.

AGAIN, FOLLOWING US ON SOCIAL MEDIA FOR THOSE THAT USE IT.

>> JIM, CAN I JUST GO AHEAD AND VOLUNTEER EVERYBODY ON THE BOARD FOR THEIR CITY EMAILS TO BE ADDED TO THAT LIST SO THAT WE'RE ALL AWARE OF THE EVENTS GOING ON WITH THE CHAMBER.

>> DESHAWYNA, CAN ASK YOU TO DO THAT AS ONE OF YOUR FINAL ACTS IS GET BETH ALL OF THEIR CITY EMAIL ADDRESSES? NOW, IF SHE DOES THAT, YOU'LL HAVE TO CHECK YOUR CITY EMAIL ADDRESSES.

>> THEY HAVE TO TAKE THAT TRAINING IN ORDER TO DO THAT?

>> THEY DO.

>> DO YOU HAVE ANY OTHER QUESTIONS?

>> WELL, I'D LIKE TO KNOW, THE BACK TO SCHOOL BASH IS COMING UP SOON?

>> YES.

>> HOW FAR OFF ARE YOU GUYS FROM YOUR GOAL?

>> A LITTLE BIT. I KNOW WE ARE GOING TO BE BEHIND, BUT THAT MONEY, EVEN IF IT IS SPENT, THE MONEY THAT IS GIVEN, WILL STILL GO INTO THAT LINE ITEM.

WE MAY SPEND IT IN HOPES THAT THERE WILL BE MORE DONATIONS COME IN. DOES THAT MAKE SENSE?

>> YES, YOU'RE GOING TO GET WHAT YOU NEED REGARDLESS.

>> OH, YES.

>> RIGHT.

>> YES. OUR GOAL IS JUST THAT THE COMMUNITY COMES TOGETHER AND THAT THAT IS COVERED.

>> SORRY, GO AHEAD. ARE WE SUPPOSED TO DECIDE TONIGHT HOW MUCH WE'RE GOING TO DONATE AND ALL THOSE THINGS, IS THAT WHAT'S ON THE AGENDA TO DO?

>> THIS IS A LEGAL EXPENDITURE THROUGH THE MARKETING FUNDS, SO WE ARE ALLOWED TO SUPPORT IT.

I'LL GO AHEAD AND TELL YOU WHAT I TOLD THE EDC BOARD LAST NIGHT AND MAKE A RECOMMENDATION, AND Y'ALL CAN DISCUSS THAT.

I'LL TELL YOU WHAT THE EDC DID LAST NIGHT.

THE EDC APPROVED, WHICH I RECOMMENDED TAKING THE ANNUAL MEMBERSHIP FROM THE SECOND HIGHEST LEVEL TO THE HIGHEST LEVEL.

IT'S A CHANGE FROM $3,000-5,000.

THEY DO SO MUCH FOR THE SMALL BUSINESSES IN OUR COMMUNITY.

I THINK THAT'S A GOOD INVESTMENT TO ME.

THE EDC ALSO APPROVED $5,000 TO GO TOWARDS THE BACK TO SCHOOL BASH.

I THINK BETWEEN THE TWO ORGANIZATIONS, IF YOU FELT OKAY WITH MATCHING THAT.

IN ADDITION, ON THE MEMBERSHIP, WE DON'T RENEW UNTIL DECEMBER, SO I WOULD RECOMMEND GO AHEAD AND INCREASING THE MEMBERSHIP NOW AND THEN KEEPING IT AT THAT LEVEL.

I THINK IT'S LIKE $1,000.

WE'RE HALFWAY THROUGH THE YEAR.

THAT WAY, THE EDC, THE CDC, LOWRY CROSSINGS, MDD, IS ONE OF THE LARGEST SPONSORS, WE SHOULD BE AT THAT LEVEL AT LEAST.

THEN THERE'S OTHER THINGS THAT WE'VE DONE WITH THE CHAMBER, AND WE CAN THINK OF THOSE LATER OR DISCUSS THOSE LATER.

WE'VE SPONSORED THE GOLF HAT FOR THE GOLF TOURNAMENT.

WE MAY VERY WELL DO THAT THIS YEAR, BUT WE DON'T NEED TO WORRY ABOUT THAT TONIGHT.

THAT'S AGAIN, ANOTHER LEGAL EXPENDITURE OF THE MARKETING FUNDS.

TONIGHT, REALLY, IT'S THE MEMBERSHIP AND THE BACK TO SCHOOL BASH.

>> IT'S FUNNY YOU SAID THAT BECAUSE AS WE'RE SITTING HERE, I ACTUALLY WROTE DOWN $5,000. BECAUSE WE'RE A CDC.

WE'RE HERE TO DEVELOP A COMMUNITY, HELP THAT, AND WHAT BETTER WAY TO DO THAT THAN WITH OUR YOUTH.

[00:45:02]

I THINK THE BACK TO SCHOOL BASH IS PHENOMENAL, WHICH I THINK MOST OF THE BOARD HERE WOULD AGREE.

THEN I WAS ACTUALLY GOING TO RECOMMEND GOING TO THE NEXT LEVEL TOO RESPONSIVE, SO WE'RE RIGHT IN THE SCENE.

>>. WELL, I SHOULD HAVE JUST SHUT UP AND LET YOU DO IT THEN.

HOW RUDE TO ME TO STEP IN FRONT OF A BOARD MEMBERS.

>> I'VE ACTUALLY GOT A QUESTION ON THAT BECAUSE WE SIGNED UP, I THOUGHT AT THE HIGHEST LEVEL LAST YEAR WITH EXECUTIVES.

>> NO. EXECUTIVE IS NOT THE HIGHEST LEVEL.

>> OH, IT'S NOT THE HIGHEST LEVEL?

>> PRINCIPAL PARTNERS IS THE HIGHEST.

>> IT'S SECOND.

>> WHAT IS THE HIGHEST LEVEL?

>> PRINCIPAL PARTNER.

>> PRINCIPAL PARTNERS? OKAY.

>> IN THAT RELOCATION GUIDE THAT YOU HAVE, MS. WALKER GAVE YOU THAT MAGAZINE, IN THE BACK, THERE IS A SHEET THAT HAS ALL OF OUR MEMBERSHIP TIERS THAT YOU'RE ABLE TO SEE THEM SIDE BY SIDE.

>> HEY, BETH, CAN I ASK A QUESTION.

LIKE MR. ASH, WE ALL WANT TO SUPPORT THE BACK TO SCHOOL BASH.

COULD YOU TELL US WHAT ARE YOUR ACTUAL NEEDS? THE 2,000 BACKPACKS, WAS THAT ENOUGH LAST YEAR? DO YOU THINK YOU NEED MORE COMING UP? OR YOU TELL US, SAY, HEY, IN A PERFECT WORLD, THIS IS WHAT I WOULD LIKE TO HAVE.

>> WE KEPT IT AT 2,000 THIS YEAR BECAUSE WE UPPED ANOTHER GRADE LEVEL TO THE CLEAR BAG.

THOSE ARE A LITTLE BIT MORE.

IT IS QUITE THE UNDERTAKING.

THE REASON WHY WE ASKED FOR MONETARY DONATIONS IS BECAUSE WE TRY TO KEEP THE BACKPACKS UNIFORM.

I WAS NOT HERE WHEN THE CHAMBER TOOK ON THIS INITIATIVE, BUT APPARENTLY WHEN FAMILIES GOT HOME, THIS ONE HAD THIS IN THEIR BACKPACK, THAT ONE DIDN'T. IT'S AN ISSUE.

BIANCA WASHINGTON HAS HEADED THIS INITIATIVE UP FOR YEARS, AND SHE GOES TO THE SCHOOL.

SHE GETS THAT BASIC SUPPLY LIST, JUST THE THINGS THAT EVERYBODY IS GOING TO GET.

WE NEED 16,000 NUMBER 2 LEAD PENCILS THAT THING.

WE DID TALK THIS YEAR ABOUT DOING AN AMAZON WISH LIST.

BUT THEN WE NEED PEOPLE TO ORDER FROM THAT LIST SO WE CAN KEEP UP WITH WHAT'S COME IN AND THAT THING.

THAT'S WHY WE ASK FOR MONETARY DONATIONS, AND THEN THAT WAY WE KNOW WHAT WE HAVE, WE KNOW WHAT WE'VE GOT.

>> IT IS SO MUCH EASIER.

>> IT IS. BUT I KNOW THAT PEOPLE SOMETIMES THEY WOULD RATHER DO AN ITEM.

AS LONG AS THEY CONNECT WITH US AND WE ARE ABLE TO KEEP ACCOUNT OF THAT, IT WORKS.

IT'S WHEN WE GO ROGUE AND DO OUR OWN THING THAT IT'S LIKE.

>> LET ME ASK YOU THIS QUESTION, OUT OF THE 20,000 THAT YOU ALL NEED TO RAISE FOR THIS.

HOW MUCH HAVE YOU ALL RAISED?

>> RIGHT NOW, I HAVE COMMITTED TO US BECAUSE EVERYBODY WAITS TILL THE LAST MINUTE.

I JUST DID THE NUMBERS TODAY.

AFTER LAST NIGHT, I THINK WE ARE UP TO 12,000 WITH WHAT WAS COMMITTED LAST NIGHT.

>> TWELVE THOUSAND WITH WHAT WAS COMMITTED LAST NIGHT.

>> LET US GET BACK TO YOU ON THE AMOUNT, KINDLY.

>> NO, THAT'S FAIR. I DON'T WANT THE EXACT NUMBER TONIGHT, JUST A ROUNDABOUT FIGURE.

>> ARE YOU CURIOUS JUST TO MAKE SURE THAT WE HELP FILL THAT HOLE? IS THAT WHY YOU'RE ASKING?

>> THAT'S EXACTLY WHY I'M ASKING.

I WANT US TO FILL BECAUSE I AGREE WITH THE 5,000, BUT IF SHE'S SHORT, THE WORK THAT THEY'RE DOING IN THE COMMUNITY, IF THEY'RE GIVING AWAY 2,000 BACKPACKS, WE HAVE MORE KIDS.

THE CITY IS GROWING, WE KNOW THAT.

THERE'S MORE KIDS, MORE NEEDS TO SERVE.

SHE'S OUT THERE DOING THE REAL WORK WORKING WITH THE COMMUNITY.

AT LEAST WE SHOULD DO IS FILL THE GAP, IF NOT MORE TO MAKE THEIR JOB EASIER. THAT'S HOW I FEEL.

>> THAT'S [INAUDIBLE]

>> I HAVE ANOTHER QUESTION. WOULDN'T THIS BE A GREAT OPPORTUNITY FOR US TO ADVERTISE THE APPRENTICESHIP PROGRAM? CAN WE GET SOME TYPE OF MARKETING FLYER OR IF WE COULD I DON'T KNOW IF WE MIGHT BE TOO LATE FOR US TO DO A VENDOR TABLE BUT SOMETHING. [OVERLAPPING]

>> WE WERE GOING TO DO THAT WHEN WE DID IT FOR NEXT YEAR, I CAN SEE IF THE MARKETING DEPARTMENT CAN DO SOMETHING PRETTY QUICKLY.

EVER SINCE WE BECAME FAMOUS AS A FAST GROWING CITY IN AMERICA, THEY'RE STAYING PRETTY BUSY.

[LAUGHTER]

>> WELL, OR EVEN LIKE CHENEDA WAS SAYING, IF WE HAD A TABLE SET UP, THAT WE COULD SEE IF BOARD MEMBERS WOULD BE WILLING TO CYCLE THROUGH AT THAT EVENT.

THE QUESTION THAT I HAVE FOR YOU IS, IF YOU GET OVER THE AMOUNT, ARE YOU GUYS ABLE TO DO ADDITIONAL BACKPACKS OR HOW DOES THAT WORK?

>> AS FAR AS I KNOW, THAT'S NEVER HAPPENED.

THE BACKPACKS WE ORDER,

[00:50:02]

ONE OF OUR CHAMBER MEMBERS HELPED US GET THOSE.

WE'VE HAD THOSE FOR A WHILE NOW.

I DON'T KNOW THAT TURNAROUND THAT WE COULD GET THEM TURNED AROUND FAST ENOUGH.

IF THERE IS A MIRACLE AND THERE IS MONEY LEFT, IT WOULD STAY IN THAT LINE ITEM AND BE CARRIED OVER TO NEXT YEAR.

>> LET ME ASK YOU THIS.

IF YOU ENDED UP WITH MORE THAN THE AMOUNT AND YOU'VE GOT YOUR BACKPACKS AND EVERYTHING SET, COULD THE CHAMBER POSSIBLY PUT TOGETHER A FUND TO BUY SOME MATERIALS FOR THE TEACHERS THAT ARE HAVING TO BUY SOME OF THEIR OWN SUPPLIES?

>> FUNNY, YOU MENTIONED THAT.

[LAUGHTER] TODAY AT OUR LUNCH AND LEARN, THE PRESIDENT OF THE CHRISTIAN MINISTERIAL ALLIANCE REQUESTED HELP.

THE CHURCHES IN PRINCETON DO A BACK TO SCHOOL TEACHER LUNCH IN EVERY YEAR.

WHEN THEY STARTED, THERE WAS AROUND 200 TEACHERS.

THERE'S A WAY BIT MORE THAN THAT THIS YEAR SO THEY HAD TO DIVIDE IT UP INTO TWO DAYS.

THE CHURCHES, THEY SAID, ARE NOT GROWING FAST ENOUGH TO KEEP UP WITH HOW THE SCHOOLS ARE GROWING.

HAVE YOU BEEN A PART OF THIS TO THE TEACHER?

>> I HAVE ACTUALLY ATTENDED THE TEACHER APPRECIATIONS BEFORE, AND THEY PROVIDE A MEAL AND GIFTS AND THINGS FOR THE TEACHERS.

YES, I'VE BEEN APART, BUT ONLY ON THE BACK SIDE OF THINGS REALLY.

>> GOT YOU. TODAY, PASTOR JOHN LET THE BUSINESS COMMUNITY KNOW THAT THEY AS CHURCHES DO GIFT CARDS BECAUSE THEY DO A RAFFLE DRAWING ALL THROUGHOUT THE MEAL.

HE LET BUSINESSES KNOW IF THEY WANTED TO BE A PART OF THAT, THEY COULD DO GIFT CARDS.

THEY'LL GIVE THEM THE SHOUT OUT, HEY, STELLAR PEST AND WILDLIFE LLC GAVE THIS GIFT CARD AND THIS TEACHER.

THAT MAY BE A POSSIBILITY.

I WOULD NEED TO DISCUSS THAT.

>> THAT QUESTION HAD COME UP.

ALTHOUGH WITH ME, AND AGAIN, THIS IS A BOARD DECISION, IF YOU DID SOMEHOW END UP WITH OVER THE AMOUNT, AND YOU DID GO THAT WAY AND DO THE GIFT CARDS.

PERSONALLY, I WOULD PREFER THE CHAMBER TAKE CREDIT FOR THOSE GIFT CARDS INSTEAD OF US.

TO ME, THAT'S NOT WHY WE'RE DOING IT.

BUT AGAIN, IT'S UP TO THE BOARD HOW MUCH YOU DECIDE TO SUPPORT, AND I'M SURE BETH AND I CAN WORK OUT THE DETAILS ON THE BACK END.

>> I'LL GO AHEAD AND KICK THIS OFF.

I'LL GO AHEAD AND MAKE A MOTION.

I AGREE WHOLEHEARTEDLY THAT WE SHOULD FULLY SUPPORT THIS AND GO ABOVE AND BEYOND BECAUSE THE WORK YOU ALL DO IS AMAZING.

I'LL MAKE A MOTION THAT WE APPROVE AND FUND $10,000 FOR THE BACK TO SCHOOL BASH FUND AND ALSO OUR MEMBERSHIP TO THE PREMIER PARTNER, IS IT CALLED?

>> PRINCIPAL PARTNER.

>> PRINCIPAL PARTNER AND THEN KEEP THAT GOING IN PERPETUITY.

>> I ACTUALLY I HAVE A QUESTION BEFORE WE DO THAT BECAUSE I WAS THINKING ALONG THE SAME LINES, BUT THE QUESTION I HAVE IS, WOULD IT MAKE SENSE FOR US TO SAY, HEY, WE'RE GOING TO DO THE EIGHT TO FILL THE GAP FOR THE CURRENT AND THEN COULD WE DO ANOTHER SUBSET OF MONEY IF WE WANTED TO DO ANOTHER TWO OR WHATEVER TO PUT TOWARDS THE NEED FOR THE TEACHER APPRECIATION? YOU JUST GO AHEAD AND MAKE IT TWO DIFFERENT.

>> I THINK IT'D BE CLEANER TO DO IT AS ONE.

>> JUST AS ONE.

>> YES, SIR.

>> WELL, WITH THAT MOTION, THEN I'LL TAKE A SECOND.

>> A SECOND.

>> THANK YOU.

>> HEY, BETH, TELL THE EDC TO GET THEIR PENNIES [INAUDIBLE] THEY NEED TO LEVEL UP. [LAUGHTER] [BACKGROUND]

>> I DID WANT TO SAY, IF YOU NEED VOLUNTEERS, PLEASE REACH OUT TO ME.

I HAVE SOME PEOPLE WHO CAN HELP WITH BACK TO SCHOOL BASH.

>> YES.

>> YES AND THE MOTION PASS 7,0.

THANK YOU FOR THAT. I WILL SAY, BETH, YOU GUYS HAVE DONE AN INCREDIBLE JOB, AND I KNOW YOU'VE GOT A COUPLE OF BOARD MEMBERS HERE WITH YOU AS WELL.

WHAT WE'VE SEEN YOU GUYS DO OVER THE LAST YEAR AND EVEN BEFORE, I KNOW WITH SOME OF THE PREVIOUS LEADERSHIP, THEY REALLY GOT THE BALL ROLLING, BUT YOU GUYS HAVE PICKED IT UP AND JUST EVEN TAKEN IT INTO HYPER DRIVE.

SEEING THE THINGS THAT YOU GUYS ARE DOING, TO THE BOARD MEMBERS AND TO YOU, THANK YOU SO MUCH FOR YOUR EFFORTS.

>. WELL, I NEED TO ALSO INTRODUCE YOU TO SOMEONE ELSE.

IN APRIL, I ADDED TO MY STAFF, LISA BRADLEY.

SHE IS MY PARTNER IN CRIME.

SHE IS FROM PRINCETON, SO IT'S BENEFICIAL TO ME TO HEAR WHAT USED TO BE HERE AND WHAT USED TO BE THERE AND THEN AS WE TOGETHER ARE HELPING CREATE WHAT WE HAVE NOW AND WHAT'S MOVING FORWARD.

[00:55:01]

BUT THANK YOU ALL.

I APPRECIATE IT VERY MUCH AND YOU ALL HAVE A GOOD EVENING.

>> THANKS BETH.

>> BETH, I WILL SAY FOR YOU AND YOUR BOARD THAT'S HERE, AND OUR BOARD KNOWS, BUT IT IS A FOCUS OF THE NEW LEADERSHIP TO CONTINUE TO BUILD A STRONGER RELATIONSHIP WITH THE CHAMBER AND SUPPORT ONE ANOTHER ANY WAY WE CAN SO YOU'VE GOT MY NUMBER.

>> WITH THAT, WE WILL GO AHEAD AND MOVE ON TO 2025-019 FORENSIC AUDIT.

[K. 2025- 019 Forensic Audit Conduct a Public Hearing, hold respondent presentations, and consider, discuss, and act on selecting a forensic auditing firm and authorizing the CEO to negotiate a contract for forensic auditing services related to the Steven and Judy Deffibaugh Community Center and recommending the expected funding necessary to the Princeton City Council. (Part 1 of 2)]

CONDUCT A PUBLIC HEARING, HOLD RESPONDENT PRESENTATIONS, AND CONSIDER, DISCUSS, AND ACT ON SELECTING A FORENSIC AUDITING FIRM AND AUTHORIZING THE CEO TO NEGOTIATE A CONTRACT FOR FORENSIC AUDITING SERVICES RELATED TO THE STEVEN & JUDY DEFFIBAUGH COMMUNITY CENTER, AND RECOMMENDING THE EXPECTED FUNDING NECESSARY FOR THE PRINCETON CITY COUNCIL.

THAT IS THE LONGEST SENTENCE I'VE EVER READ IN MY ENTIRE LIFE.

>> THEY GET A LITTLE WORDY.

WHAT WE'RE GOING TO DO IS WE'RE GOING TO HAVE THREE PRESENTATIONS.

THEY'VE ALL BEEN ASKED TO KEEP THEM TO ABOUT 10 MINUTES TO TALK ABOUT THEIR COMPANY, THEIR APPROACH, THEIR EXPERIENCE, THAT TYPE OF THING, HAVE TIME FOR QUESTION AND ANSWER.

I'M SURE THE BOARD HAS A LOT OF QUESTIONS THAT'S BEEN WIDELY TALKED ABOUT FOR QUITE A LONG TIME.

THEY'LL BE ABLE TO ANSWER THOSE QUESTIONS.

THE FIRST GROUP IS IN THE CHAMBERS NOW.

THE OTHER TWO ARE IN SEPARATE CONFERENCE ROOMS. AS THEY COME UP, WE'LL GO GET THEM, BRING THEM IN.

LET THEM DO THEIR PRESENTATION.

ONCE THEY'RE DONE WITH THEIR PRESENTATION, THEY'RE WELCOME TO STAY IN THE COUNCIL CHAMBERS.

ONCE ALL THREE ARE DONE, YOU MAY WANT TO ASK ALL OF THEM A FINAL ROUND OF QUESTIONS, YOU'RE MORE THAN WELCOME TO DO THAT.

YOU CAN MAKE A DECISION AT THAT POINT.

WE CAN RECESS INTO EXECUTIVE SESSION AND COVER OUR EXECUTIVE SESSION ITEMS AND COME BACK OUT.

YOU CAN MAKE A DECISION OR YOU DON'T ACTUALLY HAVE TO MAKE A DECISION TONIGHT ON WHO IT IS.

YOU CAN DO THAT AT THE NEXT MEETINGS.

HOPEFULLY, WE'LL GET IT DONE TONIGHT, BUT IT'S NOT A REQUIREMENT PER SE.

THERE YOU GO. ACTUALLY, I APOLOGIZE.

GRANT, WOULD YOU SAY TO DO THE PUBLIC HEARING BEFORE THEY DO THE PRESENTATIONS OR WAIT TILL AFTER THE PRESENTATIONS?

>> I WOULD RECOMMEND DOING IT AFTER THE PRESENTATIONS.

I HAVE TO SEE THE STAFF, COMMENTARY, PRESENTATIONS, THEN OPEN IT UP FOR PUBLIC HEARING AND THEN ENTERTAIN A MOTION.

>> THAT'S WHAT I WAS THINKING. THANK YOU.

WELL, IF THE BOARD'S READY, WE CAN CALL UP THE FIRST GROUP AND LET THEM GET STARTED.

DESHAWYNA, YOU HAVE THE PRESENTATIONS IN ORDER.

BRIAN FOLTYN IS LEADING THE GROUP WITH REDW LLC.

IS THAT HOW YOU SAY IT?

>> REDW.

>> REDW. I LIKE REDW.

[LAUGHTER] THANK YOU ALL FOR YOUR INTEREST IN DOING THIS AND FOR COMING IN TO DO THIS TONIGHT.

THAT IS ON YOUR SCREENS, CORRECT?

>> YES.GOOD. BECAUSE THIS IS IMPORTANT TO GET ON THERE.

VERY GOOD. YOU'RE ON.

INTRODUCE YOURSELF IF YOU WOULD.

>> SURE. THANKS FOR THE OPPORTUNITY AND NICE TO MEET EVERYONE IN PERSON.

MY NAME IS BRIAN FOLTYN.

I BROUGHT ISAAC RAMIREZ AND RACHEL BIRO FROM OUR TEAM.

WE ARE WITH REDW, WHICH IS A PUBLIC ACCOUNTING FIRM.

REDW IS IN THE TOP 100 RANKED PUBLIC ACCOUNTING FIRMS BY ACCOUNTING TODAY.

WE WERE ESTABLISHED IN 1953 IN NEW MEXICO.

WE CURRENTLY HAVE FIVE OFFICES, ALMOST 400 PROFESSIONALS.

WHAT I THINK WOULD BE RELEVANT AND UNIQUE TO THE BOARD TONIGHT IS WHAT'S SPECIAL ABOUT REDW IS WE HAVE 10 DISTINCT ADVISORY GROUPS WITHIN THE FIRM.

ONE OF THOSE GROUPS IS OUR FORENSIC AND INVESTIGATION SERVICES.

WHAT WE MEAN BY A DISTINCT GROUP IS THAT THE TEAM IN EACH OF OUR GROUPS IS FULLY FOCUSED AND ONLY DEDICATED TO DOING THOSE SERVICES.

WE DON'T HAVE, FOR INSTANCE, TAX PROFESSIONALS THAT DABBLE IN FORENSICS OR DISPUTES OR THINGS LIKE THAT.

WE HAVE DEDICATED TEAM MEMBERS TO DEDICATED SERVICE LINES SO THAT'S ALL THEY'RE FOCUSED ON AND COMMITTED TO DO.

THE GROUP THAT WE'RE IN,

[01:00:02]

SO WE HANDLE FORENSIC INVESTIGATIONS, DAMAGE ADVISORY, ALSO CALLED LITIGATION SUPPORT.

WE DO FRAUD CHECKUPS, LIKE A CHECK TEST TO SEE IF INTERNAL CONTROLS ARE PROPERLY IN PLACE.

WE DO EXPERT WITNESS SERVICES SO THE EXPERT WITNESS SERVICES ARE ALSO RELEVANT IN THIS GROUP OF SERVICES BECAUSE IF WE ARE ENGAGED TO DO EITHER A DISPUTE OR A FORENSIC ACCOUNTING ENGAGEMENT, AND WE FIND THAT THERE WAS DAMAGES OR MISAPPROPRIATION OF ASSETS, WE ALSO HAVE THE SKILLS AND EXPERIENCE AND ABILITY TO COMMUNICATE THAT AND TESTIFY TO OUR OPINIONS IN A COURT OR ANY OTHER LEGAL SETTING.

THE PROPOSED TEAM THAT WOULD LEAD THIS IMPORTANT OPPORTUNITY, SO I INTRODUCED MYSELF.

I'M BRIAN. I OVERSEE THE WHOLE DEPARTMENT.

RACHEL, SHE OVERSEES ALL THE FORENSIC SERVICES.

ISAAC MANAGER IN OUR GROUP, AND ALI WAGNER.

ALI IS OUT OF OUR NEW MEXICO OFFICE.

RACHEL AND I ARE IN THE PHOENIX OFFICE SO WE FLEW IN TODAY JUST BECAUSE IT WAS IMPORTANT TO MEET EVERYBODY IN PERSON.

ISAAC IS LOCAL SO IF OUR FIRM WAS AWARDED THIS OPPORTUNITY, ISAAC WOULD BE MANAGING THE WHOLE PROJECT.

I THINK HE'S ABOUT 20 MINUTE DRIVE FROM HERE.

THE DEPARTMENT HOLDS THE FOLLOWING RELEVANT CREDENTIALS FOR AN ENGAGEMENT LIKE THIS, CPA, CFF, CFE, CIA.

>> I CAN ANSWER AT THE END, IF ANYBODY WANTS INFORMATION ON THE CREDENTIALS OR WHAT THEY STAND FOR, BUT I'LL JUST GO THROUGH THE PRESENTATION AND MAKE IT BRIEF, SO EVERYONE'S NOT HERE ALL NIGHT.

ONE OF THE CREDENTIALS THAT THE DEPARTMENT HOLDS THAT CFE.

WE ARE MEMBERS OF THE AFCE, WHICH PUTS OUT A STUDY EVERY YEAR ON FRAUD, AND IT'S LIKE A FRAUD TRACKER.

I JUST PUT THIS SLIDE IN HERE IN CASE ANYBODY WAS INTERESTED OR FOUND IT INTERESTING, BUT IN THE 2024 STUDY, THERE WAS ABOUT THREE BILLION DOLLARS OF FRAUD REPORTED BY THIS ORGANIZATION IN ALMOST 2000 CASES.

OUR DEPARTMENT YEAR TO DATE WITH OUR DISPUTE AND INVESTIGATIVE ENGAGEMENTS, WE'VE IDENTIFIED AND QUANTIFIED $46 MILLION OF EITHER MISAPPROPRIATED ASSETS OR DAMAGES.

THERE'S DEFINITELY BEEN A BIG UPTICK IN FRAUD AND FRAUDULENT MATTERS.

WINDING DOWN THE PRESENTATION HERE.

I THOUGHT IT WOULD BE HELPFUL TO JUST IDENTIFY WHAT A FORENSIC AUDIT IS AND ISN'T AND HOW WE CONDUCT THESE.

THE PROFESSIONAL STANDARDS THAT WE FOLLOW, WHICH ARE LISTED HERE, ONE IS BY THE ACFE, THE FRAUD EXAMINERS MANUAL, AND THE OTHER ONE IS THE SSFS NUMBER 1, WHICH IS PUBLISHED BY THE AICPA.

THEY DON'T ACTUALLY DEFINE A FORENSIC AUDIT IN ANY OF THE PROFESSIONAL STANDARDS, BUT IT IS A TERM THAT'S USED.

IT'S ALSO USED A LOT OF TIMES INTERCHANGEABLY WITH FORENSIC SERVICES OR FORENSIC ACCOUNTING.

WHAT THESE SERVICES ARE IS WHEN THE PROFESSIONALS APPLY THEIR SKILLS, EDUCATION, EXPERIENCE, TRAINING TO COLLECT AND ANALYZE DATA.

SPECIFICALLY, WHEN THERE ARE ALLEGATIONS OF FRAUD OR SOME MISAPPROPRIATION AND BEING ABLE TO QUANTIFY THAT AND THEN COMMUNICATE THAT.

THAT'S WHERE THOSE EXPERT WITNESS SERVICES COME IN THERE.

BECAUSE A LOT OF TIMES WE DO LOOK AT A LOT OF DATA AND THINGS GET VERY COMPLICATED AND CONFUSING.

YOU DO NEED TO HAVE THE APPROPRIATE EXPERIENCE AND SKILLS TO BE ABLE TO SUMMARIZE AND COMMUNICATE WHAT HAPPENED, IF ANYTHING.

FINALLY, I BELIEVE THIS IS OUR LAST SLIDE.

IN TERMS OF THESE FORENSIC AUDITS OR FORENSIC SERVICES OR FORENSIC ACCOUNTING ENGAGEMENTS.

THEY'RE VERY CHALLENGING TO SCOPE IN TERMS OF FEES BECAUSE WE ALWAYS HEAR THE ALLEGATIONS,

[01:05:05]

BUT NEVER KNOW WHAT DATA WE'RE GOING TO RECEIVE, MEANING THE QUALITY OF DOCUMENTS IS ELECTRONIC, IS IT PAPER? IS THERE ITEMS MISSING, AND THEN THE FLOW OF THOSE DOCUMENTS TO US.

THOSE CREATE CHALLENGES OR SOMETIMES THEY CREATE EFFICIENCIES, DEPENDING ON WHAT TYPE OF INFORMATION WE'RE GIVEN.

AS WE PROGRESS WITH OUR PROJECTS, AS THINGS BECOME KNOWN, FURTHER QUESTIONS POP UP, AND IT'S VERY HARD TO SAY, LIKE THIS ENGAGEMENT WOULD BE X DOLLARS.

HOW WE TRY TO HANDLE IT AND WE DO A LOT OF THESE ENGAGEMENTS IS WE DO A PHASED OR A STAGED APPROACH WHERE WE TRY TO BREAK IT DOWN INTO SMALL BYTES, AND THERE'S ALWAYS A PRELIMINARY PHASE WHERE IT'S WHERE WE NEED TO INTERVIEW THE APPROPRIATE PEOPLE AND LISTEN TO THE ALLEGATIONS AND THEN ANALYZE THE DOCUMENTS.

ONCE WE GO THROUGH THAT INITIAL, WE CALL IT PHASE 1A.

WE'RE ABLE TO THEN COMMUNICATE.

WE THINK IT'S GOING TO TAKE THIS AMOUNT OF TIME, AND OUR FEES ARE A FUNCTION OF HOURS AND RATES.

WE COME PRETTY CLOSE TO SAYING, WE USUALLY GIVE A RANGE.

SOMETIMES WE'LL CAP IT AND SAY WE WON'T GO OVER X AMOUNT OF DOLLARS, WE PROGRESS USUALLY IN TWO WEEK INCREMENTS, MEANING EVERY TWO WEEKS, WE PAUSE AND WE HAVE A POINT PERSON OR A TEAM OR A BOARD, WHERE WE SAY, HERE'S WHAT WE'VE DONE THIS LAST TWO WEEKS.

HERE'S WHAT WE FOUND.

HERE ARE FEES FOR DOING THIS WORK.

DO YOU WANT US TO PROCEED FOR ANOTHER TWO WEEKS? IF WE SAY AN ENGAGEMENT MIGHT BE $20,000 AND WE GO THROUGH FOUR WEEKS OF WORK AND BASED ON OUR FINDINGS AND WHAT BECOMES KNOWN AND KNOWABLE AT THAT TIME, WE MIGHT SAY, LET'S PAUSE BECAUSE THE $20,000 IN FEES TO COMPLETE IT IS PROBABLY GOING TO BE LESS THAN WHAT WAS MISAPPROPRIATED? THEN WE PAUSE, WE END THE ENGAGEMENT AND WHATEVER HOURS WE INCURRED IF IT WAS $2,000 OR SOMETHING IN THE FOUR WEEKS? THAT'S WHAT WE INVOICE.

WE REALLY STRUCTURE IT BECAUSE THESE THINGS CAN BECOME BLACK HOLES.

I KNOW THAT ALL OF US HAVE A LOT OF EXPERIENCE.

I'VE BEEN DOING THIS FOR 30 YEARS.

YOU JUST CAN'T, LIKE, GO INTO AN ENGAGEMENT WITH A BLANK CHECK, AND YOU MIGHT NOT FIND ANYTHING THAT WAS MISAPPROPRIATED, OR YOU MIGHT COME UP WITH $1 AMOUNT THAT WAS SIGNIFICANTLY LESS THAN THE FEES THAT IT TOOK TO INCUR THOSE.

WE DO STRUCTURE OUR ENGAGEMENTS IN THESE STAGES AND PHASES.

I HOPE I HIT THE 10 MINUTES.

>> NOW, THAT WAS PERFECT.

SPEAKING FOR ME, YOU ANSWERED ONE OF THE BIG QUESTIONS.

I SAW A FEW PEOPLE NODDING, BUT I'M SURE THE BOARD MEMBERS HAVE SOME QUESTIONS.

LADIES AND GENTLEMEN, HAVE AT IT, THEY'RE MORE THAN HAPPY TO ANSWER ANY QUESTIONS YOU MAY HAVE.

>> I UNDERSTAND IT CLEARLY, THE BID THAT YOU HAVE PUT IN, THAT IS MORE AND LESS SAYING THAT THAT'S THE TIME YOU ALLOCATE TO GO THROUGH WHATEVER DOCUMENTS AND STUFF WE HAVE TO THEN DETERMINE IF ANYTHING, DOES NEED TO BE INVESTIGATED, BUT IF IT DOES, THEN THAT'S WHEN WE WOULD GET A SECOND BID?

>> THAT PHASE 1, AND I DON'T WANT TO BE MISLEADING WHEN WHEN I USE THE WORD PHASE BECAUSE THERE'S ALL THESE SUBPARTS.

TYPICALLY, A PHASE 1 WOULD BE THIS INITIAL ASSESSMENT.

IT'D BE HAVING THE INTERVIEWS, REVIEWING THE DOCUMENTS, AND THEN OUTLINING, AND WHERE THE FORENSIC AUDIT COMES IN IS AN AUDIT IS USUALLY A LIST OF PROCEDURES, AND WE WOULD SAY, THIS IS WHAT WE WOULD DO, AND THIS IS THE AMOUNT OF TIME, AND SO ON.

TYPICALLY, THAT PART A, AND THIS ALL GETS BROKEN OUT IN OUR ENGAGEMENT LETTER.

BUT THOSE ARE TYPICALLY LIKE $7,500.

NOW, SURE, IF IT ONLY TOOK US TWO HOURS, IT'S NOT GOING TO BE ANYWHERE NEAR THAT.

BUT JUST FROM OUR EXPERIENCE AND HAVING TO TALK TO SEVERAL PEOPLE AND GOING THROUGH DOCUMENTS, THAT'S ROUGHLY WHAT THAT PHASE A COMES IN AT.

THEN WE DO THAT EXPANDED REVIEW, WHICH IS MORE OF A CALL IT PHASE 1_B.

THAT'S WHERE WE'LL LIST ALL THE PROCEDURES AND WHAT WE THINK WE'RE GOING TO FIND.

I WOULD SAY MORE CASES THAN NOT, WE EVEN COME UP WITH A PRELIMINARY ASSESSMENT WHERE HERE'S OUR GUT ON WHAT WE'RE SEEING, AND YOU'LL GET A VERY HIGH LEVEL PRELIMINARY.

THIS IS WHAT WE THINK THE FINDINGS ARE.

THEN WE CAN STRUCTURE A DETAILED INVESTIGATION.

OUR PROPOSAL IT WASN'T GOING OFF OF A TON OF DETAIL.

THROUGH OUR E MAIL WITH JIM, JIM HAS BEEN GREAT CORRESPONDING WITH US, WE LEARNED,

[01:10:02]

THAT THE AMOUNT OF DOCUMENTS AVAILABLE ARE SIGNIFICANTLY LESS THAN WHAT WE WERE ASSUMING, I BELIEVE YOU SAID IT IS ROUGHLY TWO BANKER BOXES.

>> I THOUGHT IT WAS A COUPLE OF BANKERS BOXES.

AS FAR AS THE RECEIPTS GO, WE LITERALLY HAVE ABOUT A THIRD OF ONE BANKER'S BOX OF RECEIPTS.

NOW, I AM ASKING THE CITY SECRETARY'S OFFICE, AND THEY'RE WORKING ON THIS RIGHT NOW TO DO A SEARCH ON THE COMMUNITY CENTER FOR THE ENTIRE TIME PERIOD IN QUESTION AND PULL ANY AND EVERY RECORD OR CONVERSATION THAT HAD TO DO WITH THE COMMUNITY CENTER, JUST SO THEY HAVE IT.

THE SAME FROM THE CDC, BECAUSE I WOULD ASSUME THAT IT WOULD BE IMPORTANT FOR THEM TO MATCH UP WHAT IS APPROVED VERSUS WHAT HAPPENS.

WE'LL AT LEAST GET ALL THOSE ACTIONS IN LINE FOR THEM.

BUT AS FAR AS RECEIPTS, AND I WENT THROUGH IT, AND I COULD HAVE SWORN THERE'S TWO BANKER BOXES, AND ONCE I WENT THROUGH WITH THE FINANCE DEPARTMENT AND PULLED EVERYTHING OUT, THERE IS NOT.

IT'S A WIDE RANGE OF YEARS, BUT THERE WASN'T A LOT OF WORK DONE WITHIN THOSE.

IT WAS BASICALLY ONE PROJECT THAT WAS IN THE MIDDLE OF THAT RANGE OF YEARS.

YOU GOT THE RANGE OF YEARS THAT SEPARATES THE FIRST ROUND OF RENOVATE BECAUSE WE'RE IN THE SECOND ROUND OF RENOVATIONS ON THAT BUILDING, WAS SEPARATING THE TWO PROJECTS.

>> JUST TO GIVE YOU AN IDEA TOO, LIKE OUR FIRM, WE HAVE TWO STORAGE UNITS OF JUST BANKER BOXES.

I MEAN, WE GET DUMPED WITH JUST A TREMENDOUS AMOUNT OF INFORMATION, AND SOMETIMES IT TAKES SIGNIFICANT TIME JUST TO GET THROUGH IT IF WE GET LIKE 20 OR 30 BANKER BOXES, BUT HAVING AN INITIAL SCOPE OF TWO BANKER BOXES, OUR PRELIMINARY, GUESSTIMATE, IT WOULD BE NOWHERE NEAR THAT.

>> SPEAKING OF THAT A LITTLE BIT, AND I UNDERSTAND YOU GUYS ONLY HAD TO WORK WITH THE LIMITED INFORMATION THAT YOU WERE GIVEN.

HOW DO YOU DEFINE THE SCOPE OF THE AUDIT? NOW THAT YOU'RE GETTING SOME INFORMATION HERE, AND THEN, WHAT ARE THE PROCEDURES THAT YOU GUYS HAVE IN PLACE TO VALIDATE THOSE?

>> SURE, RACHEL, TOO, YOU MIGHT WANT TO SPEAK.

I KNOW YOU'RE INTO THE DETAILS, BUT WE FIRST WANT TO UNDERSTAND WHAT THE MAIN CONCERNS ARE. DO YOU WANT TO SPEAK?

>> AS FAR AS WE UNDERSTAND FROM TALKING WITH JIM, IT SEEMS LIKE THIS IS MASSIVELY A PROCUREMENT POLICY ISSUE, AND IF PURCHASES WERE IN LINE WITH PROCUREMENT POLICIES AND WHAT HAD BEEN PREVIOUSLY APPROVED.

TYPICALLY, WHAT WE'RE LOOKING FOR IS THE ORIGINAL DOCUMENTS.

WHAT HAD BEEN APPROVED VERSUS WHAT WAS ACTUALLY EXPENDED, AND ANY VARIANCES THEREFROM.

IN TERMS OF SOME OF THE SAMPLING PROCEDURES THAT WE OUTLINED, THAT'S NOT TYPICALLY NECESSARY IN A DOCUMENT TO DOCUMENT REVIEW PROCESS.

WE WOULD JUST BE PRESENTING.

MOST OFTEN, WE'VE DONE THIS WITH VARIOUS CITIES.

WE DID IT WITH THE CITY OF AVONDALE, THE CITY OF PHOENIX, SOME COUNTIES IN NEW MEXICO.

IT'S TYPICALLY JUST A STRAIGHT VARIANCE AND THEN IDENTIFYING WITH YOU WHAT VENDORS AND OR PROCUREMENT STAFF BROKE POLICY.

SOMETIMES WE WILL PROVIDE YOU WITH RECOMMENDATIONS IF NEEDED TO ENHANCE INTERNAL CONTROLS TO PREVENT THIS FROM HAPPENING ON A GO FORWARD BASIS.

IF THAT'S SOMETHING THAT'S NEEDED AS WE DISCUSS SCOPE.

>> IS THAT SOMETHING THAT'S LIMITED JUST TO THIS PARTICULAR PROJECT, OR IS THAT SOMETHING THAT THEN COULD EXPAND OUT, SAY, TO THE CITY?

>> CORRECT. OUR FIRM DOES WE HAVE A RISK ASSESSMENT TEAM.

AS BRIAN WAS SPEAKING, WE HAVE MULTIPLE SERVICE LINES, AND SO THEIR SPECIALTY IS ACTUALLY INTERNAL CONTROLS AND POLICY, AND PROCEDURES WITH MUNICIPALITIES AND STATES.

>> BUT WOULD YOU GUYS END UP LOOKING OUTSIDE OF THIS PARTICULAR PROJECT WITH THE CDC, AND SPECIFICALLY THE COMMUNITY CENTER, WOULD THAT CREEP OVER TO SOMETHING WITH THE CITY?

>> ONLY IF THAT WAS SOMETHING THAT WAS APPROVED AND THERE ONE, IF THERE'S PARTIES THAT WOULD BE AT RISK FOR THE CITY, WE WOULD IDENTIFY THAT WITH YOU.

BUT THEN, IF IT'S SOMETHING THAT YOU FELT THE SCOPE NEEDED TO BE BROADENED, WE WOULD TAKE THAT INTO CONSIDERATION AND ASSIST WITH THAT EFFORT.

>> BUT YOU WOULD BRING THAT BACK TO US, AND THEY WOULD DECIDE IF THEY WANTED TO BROADEN IT?

>> THERE WOULD BE NO SCOPE CREEP, IF THAT'S THE QUESTION.

>> I HAVE A QUESTION, I KNOW YOU HAVE ONE LOCAL.

YOU GUYS, ARE YOU FAMILIAR WITH ARE ANYBODY ON THE BOARD OR STAFF HERE? ARE YOU, LIKE, FRIENDS OR ANY OF THAT? THAT'S ONE OF MY CONCERNS.

>> NO. TO BE HONEST, I HAVE FAMILY IN AUSTIN, BUT I'VE NEVER HEARD OF THE CITY OF PRINCETON BEFORE THIS.

[01:15:02]

ISAAC IS JUST SOUTH OF HERE 20-30 MINUTES.

BRIAN'S INITIALLY FROM MICHIGAN.

>> IT'S NOT A CONFLICT OF INTEREST.

>> WE WOULD NOT. FIRST OF ALL, WE HAVE INDEPENDENCE REQUIREMENTS WITH OUR FIRM, SO WE WOULDN'T EVEN HAVE PROPOSED ON THIS IF THERE WERE ANY INDEPENDENCE ISSUES.

>> SINCE YOU'VE NEVER HEARD OF US.

I JUST GOT TO TELL YOU WE ARE THE FAST GROWING CITY IN AMERICA.

YOU'RE GOING TO HEAR ABOUT US MORE AND MORE AS WE MOVE FORWARD.

>> AS A FORENSIC ACCOUNTANT, I BECOME A LITTLE BIT OF A STALKER.

BEFORE I EVEN HELPED PUT TOGETHER THIS PROPOSAL, I WATCHED A LOT OF CITY COUNCIL MEETINGS TO TRY AND GET TO UNDERSTAND THE CULTURE YOU HAVE HERE.

YES, ISAAC INFORMED ME THAT YOU ARE ONE OF THE FASTEST GROWING CITIES IN THE NATION, IF NOT THE FIRST. THE FIRST.

>> THE BID THAT WAS GIVEN ON THE RFQ, IS THAT GOOD FOR OVER THE 120 DAYS? OR IS THAT JUST SOMETHING THAT IF WE DECIDED TO GO FORWARD WITH YOU GUYS, WOULD THAT CHANGE, OR WOULD THE BID THAT WE WERE GIVEN BE THE SAME?

>> ARE WE TALKING THE FINANCIAL BID?

>> YES.

>> I THINK AS BRIAN WAS SPEAKING, THERE'S SOME UNKNOWN FACTORS WHEN YOU DO THIS WITH FORENSIC INVESTIGATIONS, FORENSIC ACCOUNTING INVESTIGATIONS.

WE NOW KNOWING, SPEAKING TO JIM BELIEVE THAT OUR QUOTE WAS OVERSTATED.

AT THIS PHASE, WE WOULD LIKELY QUOTE 07,500 FOR THE FIRST PHASE AND THEN ADJUST THEREAFTER.

IF COUNSEL OR OTHERS FELT IT WAS APPROPRIATE TO MOVE ON TO A SECOND PHASE.

>> JUST TO CHIME IN TOO. BOARD, YOU'VE RECEIVED MULTIPLE PROPOSALS.

WHAT WE'LL DO IS DEPENDING ON, IF YOU AWARD AND WHO YOU AWARD, YOU'LL GET APPROVAL TO JIM, AND WE'LL GO NEGOTIATE A CONTRACT.

WE'LL PAPER THAT UP WITH MORE SOME SPECIFICS.

BUT RIGHT NOW, YOU JUST HAVE SOME PROPOSALS BASED ON THE VERY LIMITED INFORMATION THAT WAS PROVIDED IN THE RFQ DOCUMENT.

>> THAT IS GOOD TO KNOW THAT IT IS A SIGNIFICANTLY DIFFERENT STARTING NUMBER AT LEAST FOR THE FIRST PHASE THAN I WAS AFRAID THAT WOULD HAPPEN IS YOU'VE GOT A SPREADSHEET OF THE THREE BIDS.

ALTHOUGH WE DIDN'T SHARE WHAT THE BID NUMBERS WERE WITH ANY OF THE THREE FIRMS, WE DID TELL THEM IT WAS A PRETTY WIDE RANGE.

I'M NOT SURPRISED BECAUSE OF THE LACK OF SCOPE.

I MEAN, THEY'RE SHOOTING IN THE DARK TO AN EXTENT.

AFTER TODAY, I THINK WE'LL HAVE A LITTLE BIT BETTER GRIP, AND IT WILL HELP GRANT AND I SIT DOWN AND TRY TO FIGURE OUT HOW TO PAPER IT WITH THEM.

>> I MAY HAVE SAID THIS WRONG, BUT WHAT I WAS TRYING TO FIGURE OUT IS THE ACTUAL BID ITSELF.

DOES IT EXPIRE WITHIN 120 DAYS. THE BID.

>> THAT'S A GOOD QUESTION. WE HAVE A PROPOSAL DEPARTMENT WHO PREPARES THESE, BUT I WOULD ASSUME IF IT EXPIRED THAT THEY WOULD JUST REISSUE A NEW ONE THAT LOOKED THE SAME WITH THE PRICE REVISIONS IN IT.

>> MARYLOU, WHAT WE WOULD DO NEXT IS WITHIN THAT 120 DAYS, WE WON'T BE GOING OFF OF A BID.

WE'LL HAVE A CONTRACT, AND THAT NUMBER WILL LIKELY CHANGE, SO IT'LL LOCK IT IN.

IF NOT, THE TOTAL AMOUNT, AT LEAST THE SCOPE.

>> THANK YOU.

>> I HAVE ANOTHER QUESTION. IN DOING THE FORENSIC AUDIT, ARE YOU ABLE TO REVIEW OR REQUEST AND RETRIEVE FINANCES OR FINANCIAL DOCUMENTATION FROM VENDORS THAT WERE ASSOCIATED WITH THE PROJECT?

>> THAT IS A REALLY GOOD QUESTION.

WE DO NOT HAVE SUBPOENA POWERS.

WE'RE NOT ATTORNEYS, WE'RE LAY PEOPLE.

WE CAN MAKE RECOMMENDATIONS TO LEGAL COUNSEL FOR WHAT MIGHT BE HELPFUL FOR US.

THEN IF THE EXISTING PARTNERSHIPS ARE STILL IN PLACE, A LOT OF TIMES WHAT WE'LL START WITH IS A DOCUMENT REQUEST THAT THE COUNSEL OR OTHERS CAN GO OUT TO AND REQUEST THAT INFORMATION.

THEN IF THEY'RE NON-COMPLIANT, THAT'S OFTEN WHEN WE SEE THAT SECOND STEP TAKEN, THE SUBPOENA.

>> THE SECOND STEP WOULD BE A SUBPOENA?

>> THAT'S TYPICALLY WHAT WE SEE IF NEEDED.

IF WE FELT LIKE THE VENDOR RECORDS WERE MISSING, WE WOULD INFORM YOU WHAT WAS MISSING.

YOU ALL CAN GO TO VENDORS.

IF VENDORS ARE NON-COMPLIANT.

IF LEGAL COUNSEL DECIDES THE NEXT STEPS ARE SUBPOENAS, THEN THAT'S THEIR RECOMMENDATION TO MAKE TO YOU, BUT THAT'S TYPICALLY WHAT WE SEE.

>> WHAT TYPE OF VENDOR RECORDS WOULD BE MISSING OUTSIDE OF JUST AN INVOICE THAT WE RECEIVE FOR A PARTICULAR PIECE OF THE PROJECT?

>> IT DEPENDS, SOMETIMES, ESPECIALLY WITH CONSTRUCTION.

KNOWING THIS IS A PHASE 1 CONSTRUCTION PROCESS, IT'S JUST WAS THE CITY FOLLOWING PROCUREMENT POLICIES IN TERMS OF RETAINING RECORDS.

SOMETIMES WHEN WE GET INTO THESE, WE FIND THEY DIDN'T.

[01:20:01]

WHETHER THEY'RE INTERNAL RECORDS OR EXTERNAL RECORDS, SOMETIMES THINGS ARE MISSING.

WE WOULD IDENTIFY THEM FOR YOU.

IF THEY'RE INITIAL CONTRACTS VERSUS AMENDED CONTRACTS AND YOU ONLY HAVE THE INITIAL, BUT WE CAN SEE THROUGH EMAIL RECORDS THAT THERE WAS AN AMENDMENT, BUT WE CAN'T FIND IT, WE WOULD SAY, HEY, THIS APPEARS TO BE MISSING FROM THE FILE.

>> GOT IT.

>> I'M NOT BEING FACETIOUS, BUT DUE TO THE YEARS, AND WE MAY HAVE RECORD OF THIS.

I'M NOT EVEN SURE WHAT THE PROCUREMENT POLICY WAS IN 2015-2022.

WE MAY BE ABLE TO FIND IT.

I WOULDN'T SWEAR THAT WE HAD ONE.

I'M SURE WE DID. WE SHOULD HAVE, BUT I'VE NOT SEEN IT.

>> IF THAT'S REALLY WHAT IT SOUNDS LIKE, AND CORRECT ME IF I'M WRONG, THE SCOPE OF THIS PROJECT IS TO COMPARE WHAT HAPPENED AGAINST THE PROCUREMENT POLICY.

HOW DO WE DO THAT WITHOUT HAVING A COPY OF THE PROCUREMENT POLICY?

>> WE'LL CERTAINLY LOOK. I'M NOT SAYING WE DON'T HAVE ONE.

I'M SAYING I HAVEN'T SEEN ONE.

HAVE YOU SEEN ONE, GRANT?

>> I THINK THE DATES IN QUESTION ARE 2015-2022.

I CAME ON MID 2023.

WE'RE NOT SURE WE HAD THE POLICY.

COMPLETING THE FIFTH. I'M SURE WE CAN FIND SOMETHING AS YOU GUYS DIG IN.

WE CAN LOOK INTO A LITTLE BIT MORE.

>> IT'S USEFUL CONVERSATION BECAUSE I WANT Y'ALL TO BE COMFORTABLE.

WE'RE GOING TO FIND WHAT WE'RE LOOKING FOR, AND THAT THERE'S A MECHANISM TO DO THAT.

>> THE OTHER THING, JUST TO EXPAND ON THAT A LITTLE BIT IS IN YOUR PRESENTATION, YOU MENTIONED, ANALYZE, EVALUATE CERTAIN EVIDENTIAL MATTER.

THE GENTLEMAN ALSO MENTIONED, WE ALWAYS HEAR THE ALLEGATIONS.

IT SOUNDS LIKE THERE'S USUALLY SOMETHING SPECIFIC THAT IS BEING BROUGHT TO THE FOREFRONT OF SAYING, HEY, WE THINK SOMETHING HAPPENED HERE.

IS THAT TYPICALLY WHAT YOU GUYS LOOK FOR? IS THERE SOMETHING SPECIFIC THAT YOU TYPICALLY AT LEAST START WITH AND THEN KIND OF WORK OUT FROM THERE? HAVE YOU BEEN GIVEN ANYTHING LIKE THAT AS PART OF THIS PROCESS?

>> WE ALWAYS DO A GENERAL INTAKE.

WE'RE ALWAYS GOING TO WANT TO UNDERSTAND THE FINANCIAL SITUATION THAT IN THIS CASE, THE COMMUNITY CENTER WAS UNDER.

BUT AS WE UNDERSTAND IT, AND AGAIN, LISTENING TO SOME COUNCIL MEETINGS, IT SEEMED PRETTY CLEAR TO US THAT THERE WAS SOME PROCUREMENT ISSUES.

WHEN WE TALK ABOUT PROCUREMENT, IT WAS WHAT YOU ALL AND PERHAPS I'M WRONG AND THIS WOULD BE A GREAT OPPORTUNITY TO SET THE RECORD STRAIGHT, BUT IT SEEMED TO US THAT PERHAPS WHAT YOU ALL HAD HOPED TO ACHIEVE OR AND OR WERE PROMISED WAS UNDER DELIVERED OR NOT DELIVERED AS IT RELATES TO THE COMMUNITY CENTER.

IT SEEMED LIKE THERE MIGHT HAVE BEEN SOME RUMOR MILL AROUND THAT.

IF THAT'S THE CASE, THAT'S WHERE WE WOULD START LOOKING, AND IF THERE WERE OTHER DIRECTIONS THAT THE COUNSEL OR LEGAL WANTED TO POINT US, THEN WE WOULD FOLLOW THAT.

BUT AS BRIAN WAS SAYING, A FORENSIC INVESTIGATION, IT CAN REALLY BURGEON OUT OF CONTROL.

WE'RE CAUTIOUS ABOUT GOING DOWN TOO MANY RABBIT HOLES WITHOUT PROPER DIRECTION FROM THOSE WHO MIGHT BE IN THE KNOW.

>> I THINK THAT'S WHAT MAKES THIS SO INCREDIBLY DIFFICULT, IS THAT THERE'S SO MUCH SPECULATION ON THINGS, BUT YET NOTHING HAS BEEN BROUGHT TO THE FRONT TO SAY, THIS IS WHAT WE THINK HAS HAPPENED.

OBVIOUSLY WHY I'M ASKING THE QUESTION IS, IF YOU HAVEN'T BEEN GIVEN ANYTHING REALLY SPECIFIC TO LOOK FOR, YOU'RE JUST LOOKING AT IT, HEY, WAS IT DONE WITHIN THE POLICIES? IT SOUNDS LIKE FREQUENTLY, YOU FIND THAT IT HASN'T BEEN DONE ACCORDING TO THE POLICY THAT WERE IN PLACE AT THAT TIME.

THERE'S USUALLY SOME MISSTEPS [OVERLAPPING].

>> OR OUTSIDE THE TERMS OF THE AGREEMENTS WITH VENDORS OR WHAT HAVE YOU, YES, AND SO WE IDENTIFY THOSE AND HOW YOU ALL CHOOSE TO MOVE FORWARD WITH THAT, WHETHER THAT PERHAPS THAT VENDOR IS NOT USED GOING FORWARD OR IF THERE'S LEGAL ACTION.

>> THAT WAS GOING TO BE MY NEXT QUESTION. WHEN THAT IS DISCOVERED, WHAT'S USUALLY THE DOWNSTREAM EFFECT OF THAT?

>> HONESTLY, AT THAT POINT, IT'S REALLY CONVERSATIONS WITH LEGAL AND YOU ALL IN TERMS OF WHAT YOU ALL WANT TO ACHIEVE.

I USE THIS PHRASE ALL THE TIME, WHAT JUICE IS WORTH THE SQUEEZE FOR YOU? IF IT'S $25,000 IN MISAPPROPRIATIONS OR ISSUES, IS THAT WORTH IT TO COUNCIL TO GO DOWN A LEGAL ACTION ROAD? DEPENDING ON THE CITY, SOMETIMES IT IS, AND SOMETIMES IT ISN'T.

>> ANY OTHER QUESTIONS?

>> I HAVE ONE MORE.

THESE FINDINGS THAT YOU ALL HAVE WHENEVER YOU'RE FINISHED WITH THE AUDIT, ARE THOSE FINDINGS SHARED WITH PUBLIC OR IS THAT SOMETHING I SHOULD BE ASKING GRANT? THAT'S WHAT I WOULD LIKE TO KNOW.

IS IT TRANSPARENT?

>> THAT'LL BE UP TO YOU GUYS,

[01:25:01]

I WOULD THINK, GRANT?

>> CAN YOU REPEAT THE QUESTION? SORRY.

>> ARE THE FINDINGS GOING TO BE MADE PUBLIC?

>> CERTAIN ASPECTS OF THE FINDINGS WILL BE MADE PUBLIC.

WE'LL JUST HAVE TO SEE WHAT COMES BACK.

TO ANSWER YOUR QUESTION, YES.

>> BUT IT WOULD COME TO THIS BOARD BEFORE IT GOES TO ANYBODY ELSE.

I WOULD ASSUME IT WOULD BE AFTER LEGAL REVIEW AND AFTER THE BOARD SEES IT, AND THEN WE WOULD RELEASE WHAT CAN BE RELEASED. IS THAT FAIR?

>> THE REPORT ITSELF IS A PUBLIC RECORD.

THE INVESTIGATION THAT ARE IN THE REPORT MAY NOT BE MADE PUBLIC, BUT THE PAPER ITSELF WILL BE A PUBLIC RECORD.

>> TWO THINGS THAT I WOULD ADD TO THAT.

AS JIM KNOWS WHEN HE WAS ASKING FOR REFERENCES, WE'RE VERY CONFIDENTIAL WITH OUR REFERENCES, UNLESS WE HAVE PERMISSION AS IT RELATES TO FORENSIC INVESTIGATION.

UNLESS WE HAVE PERMISSION FROM MUNICIPALITIES AND STATES, WE WOULDN'T RELEASE YOUR GUYS' INFORMATION SHOULD WE BE ENGAGED TO OTHER PARTIES AS A REFERENCE.

THEN OFTENTIMES WHEN WE GET TO A CERTAIN POINT OF OUR INVESTIGATION, WE TYPICALLY COMMUNICATE UNDER CONFIDENTIALITY AND PRIVILEGE TO ENSURE THAT RECORDS ARE KEPT CONFIDENTIAL.

>> GRANT, IF I'M NOT MISTAKEN, THE WORK PRODUCT IS NOT PUBLIC INFORMATION.

IT'S NOT PUBLIC INFORMATION UNTIL IT IS TURNED OVER TO US.

>> CORRECT.

>> A COUPLE MORE QUESTIONS. DOES YOUR FIRM DO ANNUAL AUDITS FOR ANY MUNICIPALITIES?

>> LOTS.

>> NOT YOU ALL THOUGH.

>> THAT WAS JUST A CLARIFYING QUESTION.

MY NEXT QUESTION IS, CAN YOU THEN TELL US BECAUSE IT'S ACTUALLY BEEN TALKED A LOT ABOUT AROUND THE CITY AND SOMETHING THAT'S BEEN BROUGHT UP.

CAN YOU SPEAK TO THE DIFFERENCES BETWEEN AN ANNUAL AUDIT AND A FORENSIC AUDIT AND WHY WOULD A CITY CHOOSE TO DO A FORENSIC AUDIT IF IT'S HAD A CLEAN BILL OF HEALTH FOR SEVERAL YEARS AND AN ANNUAL AUDIT?

>> THAT IS AN EXCELLENT QUESTION.

I CAN'T TELL YOU HOW MANY TIMES I'VE DONE AN INVESTIGATION FOR A MUNICIPALITY OR A STATE THAT HAS HAD A CLEAN AUDIT.

THE JOB OF AN AUDIT IS TO PRESENT FINANCIAL INFORMATION AND OPINE THAT THERE IS NO MATERIAL MISSTATEMENT.

ITS JOB IS NOT TO LOOK FOR FRAUD OR MISAPPROPRIATE ACTIONS.

THAT'S NOT WHAT IT'S MEANT TO DO.

IT'S JUST MEANT TO CLEANLY PRESENT THE FINANCIAL POSITION OF AN ENTITY OR A GOVERNMENT.

>> THAT'S THE BIG DIFFERENCE IN JUST A REGULAR ANNUAL AUDIT AND A FORENSIC AUDIT.

A REGULAR ANNUAL AUDIT IS JUST MATCHING THE NUMBERS UP WITH NUMBERS.

FORENSIC AUDIT IS ACTUALLY GOING MORE IN DEPTH IN DETAIL LOOKING FOR CERTAIN FRAUDS.

>> CORRECT. IT'S IT'S A LITTLE BIT OF A RABBIT HOLE EXERCISE, WHICH IS WHY WE PROPOSE THAT PHASE APPROACH TO HELP PREVENT INAPPROPRIATE RABBIT HOLES FROM BEING ADDRESSED.

>> THANK YOU.

>> I HAVE A QUESTION. SINCE YOU STATED THAT A FORENSIC AUDIT IS LOOKING FOR SPECIFIC EXAMPLES OF FRAUD, POTENTIALLY, CORRECT? THEN HAVE YOU DEALT WITH A LOT OF SCENARIOS LIKE HAS BEEN PRESENTED IN THIS RFQ, WHERE THERE ISN'T A SPECIFIC CASE LOOK AT IT.

IT'S JUST A BROAD PROCUREMENT PRACTICE?

>> YES. OFTENTIMES WHEN WE'RE WORKING WITH CITIES, IT'S TYPICALLY A PROCUREMENT ISSUE IN CONSTRUCTION PROJECTS.

I WOULD SAY THAT THAT IS A COMMON THEME.

>> AWESOME. THANK YOU.

>> SORRY. I DO HAVE ONE LAST QUESTION IS, AS WE ALL KNOW, OUR CITY STAFF IS PRETTY STRETCHED THIN AND WHATNOT.

WHAT REQUIREMENTS WOULD YOU GUYS HAVE OR NEEDS WOULD YOU GUYS HAVE THAT WOULD FALL TO OUR CITY STAFF?

>> AS LONG AS THE INFORMATION IS CONTAINED TO THOSE TWO BANKERS BOXES, WE CAN COME ON SITE AND SCAN THEM IF THAT'S SOMETHING THAT IS ACCEPTABLE TO YOU ALL.

IF THAT'S NOT ACCEPTABLE, THAT WOULD BE THE PRIMARY FUNCTION THAT THEY WOULD HAVE TO SERVE IS THEY WOULD HAVE TO SCAN THOSE RECORDS SO THAT WE CAN MAKE USE OF THEM.

WE DON'T TAKE ORIGINALS FOR OUR INVESTIGATIONS.

WE MIGHT WANT TO OBSERVE THEM, BUT WE WOULD NEVER TAKE THEM OFF PREMISES.

I THINK THE OTHER THING WOULD BE THERE MIGHT BE SOME MINOR PULL IN TERMS OF GETTING ACCESS TO ACCOUNTING SOFTWARE, IF THAT IS SOMETHING THAT'S NEEDED FOR OUR INVESTIGATION, WHICH I'M NOT SURE AT THIS POINT IN TIME BASED ON WHAT WE'VE UNDERSTOOD WOULD BE NECESSARY AT THE START.

>> THANK YOU ALL SO MUCH.

>> THANK YOU VERY MUCH. APPRECIATE IT.

THANKS FOR FLYING OUT BY THE WAY.

[01:32:33]

WE'RE GOING TO DO A FIVE MINUTE RECESS BEFORE WE START OUR NEXT PRESENTATION.

IT'S NOW 7:43, SO WE SHOULD BE BACK AT 7:48, IF MY MATH IS CORRECT.

THE TIME IS 7:50. WE'RE COMING BACK FROM RECESS.

I CAN'T HELP BUT THINK OF MONKEY BARS WHEN I SAY THAT, BUT BACK FROM RECESS WITH OUR NEXT GROUP FROM WEAVER.

>> WE'RE READY?

>> YES. THANK YOU. APPRECIATE YOU COMING IN.

>> THANK YOU SO MUCH. OF COURSE.

I WILL START HERE. THANK YOU, EVERYONE, FOR YOUR TIME.

MY NAME IS VICTOR PADILLA, A MANAGING DIRECTOR WITH WEAVER.

I AM A CERTIFIED FRAUD EXAMINER.

I HOLD TWO MASTER'S DEGREES, ONE IN BUSINESS, ONE IN ACCOUNTING.

I HAVE CONDUCTED FORENSIC ACCOUNTING INVESTIGATIONS, BOTH DOMESTICALLY AND INTERNATIONALLY.

MY INDUSTRY EXPERIENCE INCLUDES GOVERNMENT-RELATED INVESTIGATIONS.

WITH ME, MY COLLEAGUE, BLAKE BOGDAN.

>> HI, EVERYONE. MY NAME IS BLAKE BOGDAN.

BORN AND RAISED IN MURPHY, TEXAS, NOT FAR FROM HERE.

I WENT TO TEXAS A&M FOR MY UNDERGRAD AND GRADUATE DEGREE AND ACCOUNTING AND MANAGEMENT INFORMATION SYSTEMS, CPA, CFE, AS WELL AS VICTOR.

DID SOME TIME IN BIG 4, BEEN DOING FORENSIC ACCOUNTING WORK FOR A FEW YEARS NOW WITH WEAVER.

GENERALLY, INDUSTRY AGNOSTIC, SO I DO A LOT OF EVERYTHING WITHIN FLS SPECIFICALLY, FLS BEING FORENSIC AND LITIGATION SERVICES.

BUT A LOT OF HEALTHCARE WORK, A LOT OF GOVERNMENT INVESTIGATIONS AND FORENSIC AUDITS, AND THINGS LIKE THAT AS WELL.

>> THANK YOU, BLAKE. OUR AGENDA FOR TODAY.

SORRY, I'M GOING A LITTLE BACK AND FORTH WITH THIS SLIDE THEY ARE SLIGHTLY DIFFERENT FROM OUR INITIAL SEQUENCE.

BASICALLY FOR TODAY, WE ARE GOING TO BE PROVIDING A QUICK OVERVIEW OF OUR QUALIFICATIONS AND EXPERIENCE, WE'LL BE DISCUSSING OUR PROPOSED APPROACH FOR THIS SPECIFIC FORENSIC AUDIT, AND A BRIEF EXPLANATION OF THE DIFFERENCE BETWEEN A FORENSIC AUDIT AND A FINANCIAL STATEMENT AUDIT.

REGARDING WEAVER, WE ARE A VERY WELL-ESTABLISHED ACCOUNTING FIRM.

[01:35:03]

WE'VE BEEN PROVIDING SERVICES FOR APPROXIMATELY 75 YEARS.

WE HAVE APPROXIMATELY 1,600 COLLEAGUES OR CO-WORKERS AND OFFICES IN APPROXIMATELY 20 CITIES ACROSS THE USA.

REGARDING OUR GOVERNMENT INDUSTRY EXPERIENCE, WE HAVE A TON OF CLIENTS IN THIS SPACE.

HERE IN THIS SLIDE, I'M NOT GOING TO GO THROUGH EACH ONE OF THESE NAMES.

THESE ARE CURRENT AND PREVIOUS CLIENTS.

MANY OF THOSE ARE CITIES.

THIS IS, OF COURSE, JUST INTENDED TO PROVIDE A SENSE OF MAGNITUDE.

I MAY WANT TO HIGHLIGHT TWO OR THREE RECENT CLIENTS, THE CITY OF GRAPEVINE, CITY OF AUSTIN, AND CITY OF DALLAS, JUST TO NAME A FEW.

IN THIS SLIDE, WE HAVE A NUMBER OF OTHER CLIENTS THAT ARE REGIONAL ENTITIES, ALL OF THEM GOVERNMENT AND STATE-LEVEL GOVERNMENT CLIENTS AS WELL.

REGARDING THE CERTIFICATIONS OF OUR TEAM, A NUMBER OF OUR COLLEAGUES, THEY HOLD ALL OF THESE CERTIFICATIONS ANYWHERE FROM AUDIT, IT CONSULTING, CYBERSECURITY.

THE BENEFIT OF THAT TO YOU IS THAT IF WE ENCOUNTER ANY SPECIFIC SKILL THAT IS NEEDED FOR THE INVESTIGATION, WE CAN ALWAYS SUPPLEMENT OUR TEAM WITH ANY OF THESE PROFESSIONALS.

REGARDING INDUSTRY INVOLVEMENT.

SEVERAL OF MY COLLEAGUES, INCLUDING MYSELF, WE REGULARLY PROVIDE PRESENTATIONS TO UNIVERSITIES, ASSOCIATIONS, AND SOME OTHER SPECIFIC TYPES OF INDUSTRIES.

THIS IS JUST A QUICK LIST OF INVESTIGATIONS THAT WE HAVE CONDUCTED.

WE HAVE, OF COURSE, MANY MORE INVESTIGATIONS THAT WE HAVE CONDUCTED.

THE KEY TAKEAWAY OF THIS ONE IS THAT SEVERAL OF OUR CLIENTS DECIDED TO MAKE OUR FORENSIC REPORTS PUBLICLY AVAILABLE, SO ALL OF THESE ARE ACCESSIBLE, AND WE PROVIDED THESE LINKS TO THE RESPONSE OF THE RFP IN CASE ANYBODY WANTED TO SEE ANY OF OUR PREVIOUS WORK.

MOST IMPORTANTLY, THE OPINION OF OUR PREVIOUS CLIENTS IS WHAT MATTERS THE MOST ABOUT THE QUALITY OF OUR WORK.

WE HAVE PROVIDED FIVE PROFESSIONAL REFERENCES OF RECENT CLIENTS.

FEEL FREE TO CALL THEM AND ASK ABOUT THE QUALITY OF OUR WORK.

THERE'S ANOTHER LAST POINT THAT I WANTED TO HIGHLIGHT.

WE HAVE SPECIFIC EXPERIENCE RELATED TO OUR CURRENT UNDERSTANDING OF THE SCOPE OF WORK FOR THIS POTENTIAL INVESTIGATION.

WE ARE CURRENTLY CONDUCTING AN ANALYSIS OF CONSTRUCTION-RELATED EXPENSES IN CONNECTION WITH A GOVERNMENT BUILDING.

THIS IS FOR ANOTHER ENTITY IN THE DFW AREA.

WE HAVE EXTENSIVE EXPERIENCE ANALYZING THE USES OF GOVERNMENT FUNDS, AND WE HAVE A LOT OF SPECIFIC EXPERIENCE AROUND PROCUREMENT PROCESSES.

WITH THAT, BLAKE, WOULD YOU MIND WALKING US THROUGH THE PROPOSED APPROACH FOR THESE MATTERS?

>> TO GIVE YOU A LAY OF THE END OF HOW WE APPROACH A LOT OF THESE FORENSIC AUDITS, [INAUDIBLE] PROJECT IN GENERAL.

IT IS GENERALLY A THREE-PHASE APPROACH.

ACROSS ALL THREE PHASES, THE CORE PRINCIPLES THAT WE LIKE TO FOCUS ON ARE CONSISTENT.

THAT'S GOING TO BE ONE, COMMUNICATION TRANSPARENCY, MAKE SURE WE'RE ALL ON THE SAME PAGE OF WHAT'S GOING ON THROUGHOUT THE WHOLE PROCESS.

MAKE SURE THERE'S NO SURPRISES COMING FROM US WHEN WE GET NEAR THE END OF THE PROJECT, WHETHER THAT BE BUDGETARY TIMELINE FINDINGS, ANYTHING LIKE THAT.

OTHERWISE, PHASE 1 IS WHERE WE START THINGS, PLANNING AND SCOPE.

THAT'S REALLY JUST US GETTING A LAY OF THE LAND, FIGURING OUT WHAT RESOURCES ARE AVAILABLE WITHIN PRINCETON, WHAT DOCUMENTATION, GETTING FAMILIAR WITH THE POLICIES AND PROCEDURES TO MAKE SURE WE KNOW HOW THINGS SHOULD HAVE BEEN DONE, THINGS LIKE THAT.

PHASE 1 TYPICALLY CONCLUDES WITH A PROJECT PLAN, SO WE ARE COMING INTO THIS WITH A CERTAIN SCOPE.

BUT AS WE GO THROUGH THINGS AND FIND AREAS OF FOCUS AND CONCERN IN PHASE 1, WE WANT TO MAKE SURE WE'RE ADJUSTING OUR PLAN AND BEING ADAPTABLE THROUGHOUT THE PROCESS.

ON TOP OF THAT PROJECT PLAN THAT'S BUILT, THAT'S GOING TO BE A UPDATED FEE ESTIMATE, SO WE'LL HAVE A MUCH MORE ACCURATE IDEA OF WHAT WORK NEEDS TO BE DONE BASED OFF OF THAT WORK PLAN.

THE THING WE WANT TO EMPHASIZE WITH THAT IS RE-FLEXIBLE, WHETHER THAT IS, WE GET THROUGH THINGS AND THINGS ARE LOOKING REALLY GOOD AND WELL-DOCUMENTED WITHIN PRINCETON SPECIFICALLY.

AFTER THIS PHASE, WE'RE HAPPY TO ADJUST AS NEEDED.

>> CAN I COMMENT SOMETHING REAL QUICK, SORRY?

>> SURE. >> IN SOME INSTANCES, DEPENDING ON WHAT WE LEARN IN PHASE 1, WE ARE FLEXIBLE TO OPEN AND NOT TO EXCEED TO THE EXTENT THAT WE CAN QUANTIFY THE POTENTIAL ISSUES, TO THE EXTENT THAT WE HAVE A VERY SPECIFIC PERIOD, TO THE EXTENT THAT WE HAVE A VERY TANGIBLE SCOPE OF WORK.

FOR SOME CLIENTS, WE HAVE HELPED THEM DEFINE THAT SCOPE OF WORK.

ALL OF THAT IS IN PHASE 1, AND OUR PHASE 1 COULD BE ANYWHERE FROM $15,000-$25,000.

[01:40:03]

AGAIN, PHASE 2 REALLY DEPENDS ON THE EXTENT OF THE WORK.

BUT, AGAIN, JUST WANTED TO MENTION THAT.

>> THAT'S WHY WE ARE ON THE PRESENTATION BOTH OF US.

>> SORRY.

>> NO WORRIES. PHASE 2 IS REALLY JUST THE MEAT AND POTATOES OF THINGS.

WE'RE PERFORMING OUR ANALYSIS, LOOKING INTO DOCUMENTATION, TRYING TO FIND THOSE SPECIFIC PROBLEM AREAS WITHIN THE FINANCIAL STATEMENTS.

NOT TOO MUCH THERE. AGAIN, THOUGH I WANT TO REITERATE, WE'RE TRANSPARENT, WE'RE COMMUNICATING WITH YOU GUYS AND STAKEHOLDERS WITHIN PRINCETON THEMSELVES TO MAKE SURE WE'RE ON THE SAME PAGE.

THERE'S NO SURPRISES, YOU KNOW EXACTLY WHAT WE'RE DOING AND WHAT WE'RE LOOKING INTO.

FINALLY, WE WRAP UP WITH THE DOCUMENT AND REPORTING, LIKE VICTOR MENTIONED, GENERALLY, THESE THINGS, WE FINISH OFF WITH A REPORT WHERE WE'RE DOCUMENTING EVERYTHING WE POSSIBLY CAN ABOUT WHAT WE'VE DONE AND THE BACKGROUND AND EVERYTHING LIKE THAT, SO SCOPE OF WORK, BACKGROUND, WHY WERE WE BROUGHT ON, PROCEDURES WE PERFORM, FINDINGS, CONCLUSIONS, RECOMMENDATIONS, AND WE CAN MAKE THAT LOOK EXACTLY HOW PRINCETON WANTS IT TO LOOK IN TERMS OF NOT THE FINDINGS, NECESSARILY, BUT IN TERMS OF STRUCTURE AND THINGS THAT WE OPINE ON.

SPEAKING OF THOSE REPORTS THAT VICTOR MENTIONED AND I MENTIONED AS WELL, WE'VE GOT A FEW LINKS INCLUDED HERE IF YOU EVER WANT TO TAKE A LOOK AFTER THE PRESENTATION.

QUICK LINKS TO PREVIOUS GENERALLY GOVERNMENT-RELATED WORK THAT WE'VE DONE WHERE REPORTS ARE PUBLICLY ISSUED.

NOW, WE GET INTO THE BIG THING.

ESTIMATED HOURS AND FEES, $88,000 IS WHERE WE'RE SITTING AT RIGHT NOW.

LIKE I MENTIONED, AFTER PHASE 1, WE WILL BE IN A POSITION TO OFFER A MUCH MORE ACCURATE AND INFORMED BUDGET AND WORK PLAN.

LIKE VICTOR MENTIONED, WE'RE HAPPY TO TALK ABOUT DO-NOT-EXCEED BUDGETS, WE'RE HAPPY TO TALK IF WE WANT TO LIMIT THE SCOPE OF WORK FROM WHAT WE'RE LOOKING AT IN PHASE 1.

ULTIMATELY, WE JUST WANT TO BE AS FLEXIBLE AS WE CAN TO MAKE SURE WE'RE MEETING YOU GUY'S NEEDS.

WITH THAT, WE WANT TO GIVE A LITTLE BIT OF INFORMATION ABOUT WHAT SPECIFICALLY IS A FORENSIC AUDIT.

WE KNOW SPECIFICALLY WHAT IS A FINANCIAL AUDIT, I'M SURE, BUT FORENSIC IS A LITTLE MORE NICHE, BUT A LOT OF OVERLAP.

I LIKE THIS DEFINITION ON THE TOP LINE HERE.

A SPECIALIZED EXAMINATION THAT COMBINES AUDITING, INVESTIGATIVE TECHNIQUES, AND LEGAL KNOWLEDGE TO UNCOVER POTENTIAL FINANCIAL MISCONDUCT.

TRADITIONAL FINANCIAL AUDITS TEND TO FOCUS A LOT ON MAKING SURE THE FINANCIAL STATEMENTS ARE ACCURATE AND MAKING SURE THAT THEY COMPLY WITH WHATEVER LAWS AND REGULATIONS NEED TO BE COMPLIED WITH.

FORENSIC AUDITS, THEY FOCUS MORE ON TRYING TO UNCOVER SPECIFIC ACTS OF MISREPRESENTATION WITHIN THE FINANCIAL STATEMENTS.

IN ADDITION TO THAT, WE'RE TRYING TO FIND FLAGS OF INTENT TO MAKE SURE THAT WE CAN PROVIDE EVIDENCE THAT THERE WAS INTENT BEHIND WHATEVER MISREPRESENTATIONS, IF THEY'RE THERE AT ALL.

AGAIN, INTENT IS THE DIFFERENCE BETWEEN AN ACCIDENT AND FRAUD.

THE OTHER THINGS WE WANT TO MENTION IN TERMS OF THE DIFFERENCES IS FORENSICS IS VERY FLEXIBLE IN OUR APPROACH.

IF WE'RE SEEING A CERTAIN PIECE OF EVIDENCE IN PHASE 2 THAT WE WEREN'T SEEING IN PHASE 1, WE CAN GO BACK AND ADJUST THE WORK PLAN AS WE SEE FIT AND AS WE ARE FINDING NEW FACTS AND INFORMATION, AND ALL THAT STUFF.

THAT DIFFERS FROM A TRADITIONAL FINANCIAL AUDIT WHERE THEY HAVE TO BE GENERALLY PRETTY RIGID IN WHAT THEY DO TO MAKE SURE THINGS ARE COMPARABLE YEAR OVER YEAR AND THINGS LIKE THAT.

WE'VE GOT A MATRIX HERE THAT RECAPS EVERYTHING ON ALL THE DIFFERENCES IN A NICE LITTLE FORMAT.

I'M NOT GOING TO GO OVER THIS FOR THE SAKE OF TIME HERE, BUT AGAIN, I WANT TO REITERATE FINANCIAL STATEMENT AUDITS, VERIFYING COMPLIANCE WITH LAWS, VERIFYING THE ACCURACY.

FORENSIC AUDIT, WE'RE DETECTING MISCONDUCT, AND WE'RE TRYING TO ESTABLISH THOSE FLAGS OF INTENT.

FINALLY, TO WRAP THINGS UP, WE WANT TO GIVE YOU A PROPOSED TEAM AND OUR STRUCTURE JUST TO START PUTTING FACES TO THE NAMES AND GET FAMILIAR WITH US.

WE GENERALLY STRUCTURE OUR PROJECTS WITH TWO DIFFERENT TEAMS. FORENSICS TEAM, THAT'S GOING TO BE DOING PRIMARY 95, IF NOT 100% OF THE WORK.

THAT'S GOING TO BE MADE UP A VICTOR, MYSELF, MANAGER IN THE PRACTICE NAMED ANDREW MEDINA, AND THEN ASSOCIATE NAMED AUDREY FINK.

SPECIFIC HOURS AND WORKLOAD SPREAD ACROSS THIS TEAM, CAN GO UP OR DOWN DEPENDING ON WHAT WE SEE.

IF WE GET IN THERE AND THE DOCUMENTATION IS GOOD, AND WE'RE EASILY ABLE TO TRACE THINGS THROUGH AND ALL THAT STUFF, WE CAN GO DOWN IF IT REQUIRES MORE HANDS, WE'RE HAPPY TO BRING THOSE ON AS WELL.

SUBJECT MATTER ADVISORS-WISE, WE HAVE TRAVIS CASNER AND HOLLY HEART.

THESE ARE PEOPLE WITH VERY SPECIFIC EXPERTISE IN THINGS LIKE TECHNICAL GOVERNMENT ACCOUNTING, INTERNAL CONTROLS, IT WORK, AND STUFF LIKE THAT IN CASE WE DO RUN INTO SPECIFIC ISSUES THAT WOULD REQUIRE THAT EXPERTISE, THEY ARE THERE TO HELP US OUT.

BUT IN TERMS OF THE INVESTIGATION AND THAT EXPERTISE, VICTOR AND I, AND ANDREW, AND AUDREY DEFINITELY HAVE THAT COVERED. THAT'S IT FROM US.

I FORGOT WE HAVE BIOS INCLUDED AS WELL, IF YOU WANT TO READ THROUGH LINKEDIN'S WEAVER EMAILS, FEEL FREE TO REACH OUT IF YOU HAVE ANY QUESTIONS AFTERWARDS IN LINKEDIN, STALK US IF NEED BE, JUST TO GET AN IDEA OF EVERYTHING.

BUT THOSE ARE THERE FOR YOUR RESOURCE AS WELL. NOW, WE'RE OPEN TO QUESTIONS.

[01:45:01]

>> OUT OF CURIOSITY, HAVE YOU GUYS EVER GONE THROUGH A PHASE 1 AND JUST REALIZE THERE'S NOT GOING TO BE ANYTHING HERE AND LET THE CLIENT KNOW AND JUST SHUT IT DOWN?

>> GREAT GREAT QUESTION.

IN SOME INSTANCES, WE HAVE CONDUCTED WELL, INVESTIGATIONS, ANALYSIS, WE CAN CALL IT EITHER WAY.

SOMETIMES, YEAH, WE CONCLUDE EARLY IN THE PROCESS THAT THERE'S NOTHING THERE.

IT'S JUST SOMETIMES COULD BE A RUMOR, SOMETIMES COULD BE A MISUNDERSTANDING, IT DEPENDS ON THE NATURE OF THE ISSUE.

BUT YEAH, IF WE DETERMINE EARLY IN THE PROCESS, AND THAT'S WHY PHASE 1 MATTERS A LOT.

WE GET TYPICALLY THE OPPORTUNITY TO TALK TO PEOPLE TO GET A MORE PRECISE UNDERSTANDING OF THE ISSUES, EVEN THERE WE CAN TELL YOU, PROBABLY THIS IS NOT SOMETHING WORTH PURSUING.

BUT IF WE FIND STUFF THAT IT'S A RED FLAG, THEN WE COMMUNICATE BEFORE WE DO THE PHASE WORK.

YOU MAY WANT TO CONSIDER THIS AND THIS IS YOUR POTENTIAL EXPOSURE.

BUT YEAH, BEFORE WE DO ANY PHASE 2, IT'S FEASIBLE THAT WE COULD SAY, AND WE HAVE DONE THAT, BY THE WAY.

EVEN IF THE TOTAL EXPOSURE IS NOT NECESSARILY SOMETHING SUBSTANTIAL, WE'VE TOLD CLIENTS YOU ARE PROBABLY BETTER OFF JUST [OVERLAPPING].

>> THAT WASN'T A LOADED QUESTION.

>> NO, IT'S [OVERLAPPING].

>> I DIDN'T KNOW IF THAT EVEN HAPPENED.

>> IT'S A FAIR QUESTION AND IT HAPPENS.

IT CAN GO BOTH WAYS.

EVEN EARLY, THE PROCESS IS NOT NECESSARILY SOMETHING YOU MAY WANT TO INVEST TOO MUCH OF YOUR RESOURCES OR SOMETIMES THERE ARE RED FLAGS THAT APPEAR TO BE SUBSTANTIAL, AND EVEN AFTER DOING THE WORK, IT DOES NOT MEAN THAT WE HAVE TO FIND SOMETHING.

IF THE EVIDENCE SUGGESTS THAT EITHER THE EXPOSURE IS NOT AS SIGNIFICANT, THEN YEAH, IT'S OKAY TO SAY.

IF I MAY, WE HAD AN INVESTIGATION A COUPLE OF YEARS AGO.

THIS WAS ALSO IN THE DFW AREA.

THIS WAS A PERSON THAT BASICALLY, IT'S AN EXTREME CASE, BUT I THINK IT IS RELEVANT TO THIS CONVERSATION, THE EQUIVALENT OF THE CFO COMMITTED SUICIDE.

THEN THE GOVERNMENT ENTITY WAS, OF COURSE, ALARMED ABOUT WHAT HAPPENED AND THEN THEY CALLED ME TO BASICALLY ASSESS THE SITUATION.

THEY DIDN'T HAVE A SPECIFIC ISSUE, THEY JUST FELT LIKE IT MADE SENSE TO DO A SANITY CHECK.

WE CONDUCTED AN ANALYSIS OF SEVERAL AREAS, AND AT THE END OF THE EXERCISE, WE DIDN'T FIND ANYTHING SIGNIFICANT.

IT'S NOT LIKE WE NEED TO FIND SOMETHING.

IT IT IS WHAT IT IS AT THE END OF THE DAY.

IT'S ALMOST LIKE A DOCTOR, YOU GO AND PROVIDE ADVICE.

IF SOMEBODY HAS A SERIOUS HEALTH ISSUE, WELL, IT IS WHAT IT IS, BUT IF THE PERSON IS HEALTHY, THEN GREAT.

>> THIS IS NORMAL.

YOU'VE HAD CITIES COME TO YOU FOR DIFFERENT REASONS JUST TO COME AND SAY, HEY, I DON'T KNOW, BUT I JUST WANT YOU TO DO A AUDIT JUST TO GIVE BASICALLY, LIKE YOU SAID, A CLEAN BILL OF HEALTH.

>> IT'S EQUIVALENT OF A SANITY CHECK. IT HAPPENS.

SOMETIMES CLIENTS HAVE EVEN ASKED US TO HELP THEM DEFINE THE SCOPE OF WORK.

WE DON'T WANT TO BE TOO BROAD.

FOR US, IT'S BETTER TO HAVE A MORE OR LESS DEFINED SCOPE AS OPPOSED TO SOMETHING VAGUE AND OPEN-ENDED.

THAT'S, AGAIN, ANOTHER VALUE FOR PHASE 1, WE HELP CLIENTS RECALIBRATE TO THE EXTENT THEY DO NOT HAVE ALREADY A VERY CLEAR SCOPE EARLY IN THE PROCESS.

>> THANK YOU.

>> SURE.

>> WHAT WOULD THAT COST IN MATTERS OF FEES TO CHANGE PHASE 1? IF WE FOUND A RED FLAG, COULD WE GO BACK AND ADJUST IT TO MEET THE SCOPE OF WORK WE'RE WANTING AND ADD THAT?

>> ABSOLUTELY. PHASE 1, JUST THINK ABOUT IT AS AN ASSESSMENT OF THE ISSUE.

>> IN PHASE 1, WE CONDUCT INTERVIEWS, WE MAY ANALYZE AVAILABLE DOCUMENTATION, THE FORMAT OF THE DOCUMENTATION MATTER.

FOR EXAMPLE, IF ALL OF THIS IS ACCESSIBLE AND IT COVERS THE PERIOD OF ANALYSIS, THEN WE CAN BE IN A BETTER POSITION TO TELL YOU, "THIS IS WHAT WE THINK IS GOING TO COST." IN SOME INSTANCES, DEPENDING ON THE NATURE OF THE CASE, WE EVEN PUT TOGETHER A ROADMAP TO THE INVESTIGATION THAT WE CALL AN INVESTIGATIONS PLAN, AND FROM THERE, WE CAN ALSO TELL YOU, "BASED ON WHAT WE KNOW, THIS IS A RANGE OF WHAT WE THINK IS GOING TO COST." AGAIN, IT ALL DEPENDS IF THE ISSUES THAT ARE VERY TARGETED, VERY SPECIFIC TO A PERIOD OF TIME, THEN BASED ON EXPERIENCE, WE CAN GIVE YOU A BALLPARK.

YES, BEFORE WE DO THE WORK, I THINK THAT THE ESTIMATE THAT WE PROVIDED, THE 80 SOME THOUSAND, IT INCLUDES PHASE 1, PHASE 2, BUT AS YOU CAN IMAGINE, WE DO NOT HAVE ENOUGH INFORMATION TO TELL YOU PRECISELY,

[01:50:02]

AND AFTER PHASE 1, WE COULD TELL YOU, "THIS IS WHAT WE THINK IS GOING TO TAKE." THEN ALSO FOR FULL TRANSPARENCY, SOMETIMES WE GET INTO THE INVESTIGATION, AND LET'S SAY WE FIND SOMETHING THAT SUBSTANTIALLY CHANGES WHAT WE UNDERSTOOD BEFORE WE INCUR THE FEES, WE GO WITH YOU AND WE SAY, "THIS IS WHAT WE FOUND, YOU LET US KNOW WHAT." BECAUSE AGAIN, I KNOW IT MATTERS, BUT AT THE SAME TIME, AS BLAKE MENTIONED, WE WANT TO MAKE SURE THAT ALL OF YOU ARE INFORMED BEFORE WE INCUR FEES OR DO SOME OF THAT SUBSTANTIAL WORK.

>> THANK YOU. THAT ANSWERS MY QUESTION.

>> SURE.

>> DO YOU HAPPEN TO HAVE ANY EXAMPLES WHERE YOU'VE DONE THE PHASE 1, AND THEN YOU'VE DECIDED NOT TO PURSUE IT INTO PHASE 2?

>> WELL, ACTUALLY, THAT QUALIFIES AS PHASE 1.

WHEN WE ARE IN THE SCOPING CONVERSATIONS, WE'VE TOLD CLIENTS, THIS IS PROBABLY NOT SOMETHING THAT THE JEWS [OVERLAPPING] WE HAVE DONE SOME OF THAT.

[BACKGROUND]

>> A COUPLE OF YEARS BACK, THERE WAS A COMPANY WE WERE WORKING FOR, ESSENTIALLY BROKERED MORTGAGES. WE GET IN.

THERE'S PREVIOUS FRAUD COMMITTED BY CERTAIN SECRETARIES OF THE COMPANY, AND SO THEY ESSENTIALLY WANTED LIKE VICTOR SAID, DO IT, SANITY CHECK, MAKE SURE THINGS ARE GOING AS NEEDED.

IF THINGS AREN'T WORKING OUT, WHAT SPECIFICALLY IS NOT WORKING? YOU GET IN.

WE DID A SAMPLE OF A TWO SPECIFIC MORTGAGES, JUST CHECK THE AVAILABLE DOCUMENTATION AND EVERYTHING LIKE THAT.

I THINK WE DID 10 OUT OF A CASE OF 100 MAYBE, AND NO ISSUES THERE, AND SO WE'RE GOING BACK TO.

I'M LIKE, "WE DIDN'T FIND ANYTHING WE CAN KEEP GOING IF YOU WANT, IF NOT, I DON'T KNOW IF THIS IS NECESSARILY WORTH THE TIME AND INVESTMENT."

>> AGAIN, WE UNDERSTAND THAT YOU WEREN'T GIVEN A TON OF INFORMATION AS FAR AS SCOPE ON THIS INITIALLY.

BUT CAN YOU MAYBE GIVE SOME INSIGHT AS FROM A COST DIFFERENCE OF WHAT THAT MIGHT LOOK LIKE IF IT'S JUST IN PHASE 1 VERSUS, LIKE WHAT YOU'VE PROPOSED HERE?

>> GREAT QUESTION. BASED ON WHAT WE KNOW TODAY, WHICH IS VERY LIMITED, BUT JUST AS I MENTIONED, WE ARE RIGHT NOW CONDUCTING ANOTHER ANALYSIS THAT INVOLVES EXPENDITURES ASSOCIATED WITH A NEW BUILDING FOR ANOTHER GOVERNMENT ENTITY, SO WE EXTRAPOLATED SOME OF THAT.

TO SPLIT THE COST, I THINK WE CAN DO A PHASE 1 FOR MAYBE 15-25,000, IN WHICH WE CAN DO INTERVIEWS, WE CAN ANALYZE SOME OF THE AVAILABLE INFORMATION, AND WE FEEL COMFORTABLE THAT WE CAN KEEP IT WITHIN THAT COST.

THEN WE HAVE ANOTHER INVESTIGATION SEPARATE FROM THAT ONE WHERE WE HAVE, LIKE 12 BOXES OF PHYSICAL DOCUMENTS?.

LET'S SAY 10/15 BOXES OF PHYSICAL DOCUMENTS, BUT THAT INVOLVES ANALYSIS OF RETIREMENT ACCOUNTS, INVOLVES ANALYSIS OF A BUILDING.

THIS IS A DIFFERENT ONE. THIS IS MORE LIKE A BUILDING THAT NEVER WAS CONSTRUCTED.

IT WAS MORE DESIGN AND PLANNING AND THEN THERE WERE SEVERAL REASONS OF WHY IT WASN'T BUILT.

WE USED THAT JUST AS A PARAMETER TO COME UP WITH THE 86,000 WITH THE CAVEAT THAT WE DON'T KNOW WHAT WE DON'T KNOW, BUT THAT INCLUDED BOTH PHASES, PHASE 1 AND PHASE 2. DOES THAT ANSWER?

>> YES. THANK YOU VERY MUCH. I APPRECIATE IT.

>> SIR, I HAD TWO MORE.

WHEN YOU'RE DOING YOUR RESEARCH, DO YOU MAKE COPIES AND TAKE IT OFF SITE OR DO YOU DO YOUR RESEARCH ON SITE AND KEEP THE ORIGINALS HERE? DO YOU HAVE THE ABILITY TO SUBPOENA, SHOULD YOU FIND SOMETHING FROM A BUILDER THAT WE MAY NEED TO KNOW, LIKE RECEIPTS OR STUFF?

>> GREAT QUESTION.

IN TERMS OF WHERE WE DO THE WORK, GENERALLY, WE CAN TAKE THE DOCUMENTS.

WE KEEP THEM IN A SAFE LOCATION.

AGAIN, THIS IS PART OF THE PHASE 1 CONVERSATION.

FOR THIS PARTICULAR CLIENT, WE HAD A SUBSET OF DOCUMENTS THAT MADE SENSE TO CREATE PDFS, SO WE ALLOCATED SOME OF THAT IN THE BUDGET TO MAKE SURE THEY WERE ELECTRONIC COPIES.

IF THERE ARE ELECTRONIC COPIES, THEN OF COURSE, IS MORE COST EFFECTIVE.

THAT'S A LONG WAY TO SAY THAT WE CAN DO IT EITHER WAY.

IF YOU FEEL STRONGLY THAT THE DOCUMENTS HAVE TO REMAIN ON SITE,

[01:55:04]

WE CAN ALSO DO THAT.

OUR PREFERENCE IS TO MAYBE TAKE THE BOXES, KEEP THEM IN A SAFE LOCATION, AND THEN ANALYZE AND TELL YOU THIS IS WHAT WE THINK WE SHOULD HAVE IN AN ELECTRONIC FORMAT.

WE SCAN THOSE DOCUMENTS, AND IF YOU WANT, WE CAN RETURN THE BOXES TO YOU AND THEN MAYBE COME BACK AS NEEDED TO ANALYZE THE PHYSICAL DOCUMENTS THERE.

NOW, THE SECOND PART OF THE QUESTION, THE SUBPOENA, THAT'S SOMETHING THAT YOU WOULD HAVE TO HIRE AN ATTORNEY.

WE CAN HELP WITH THE FINANCIAL ACCOUNTING WITH THE FORENSIC SIDE OF THE DOCUMENTS, BUT THAT'S MORE OF A LEGAL ASPECT OF THE WORK.

>> THANK YOU.

>> SURE. FOR THE BOARD'S INFORMATION, I BELIEVE MOST OF THE DOCUMENTS ARE ALREADY SCANNED IN AND ARE ALREADY ELECTRONIC, BUT WE'LL VERIFY THAT.

>> THAT WOULD BE SOMETHING THAT COULD REDUCE THE PRICE.

IF IT'S ALREADY ELECTRONIC, THEN THAT'S EVEN BETTER.

>> THEN WHAT WOULD YOU NEED FROM A STAFF RESOURCE PERSPECTIVE FROM OUR CITY STAFF?

>> GENERALLY, ALL WE NEED IS JUST A POINT PERSON, SOMEBODY THAT COULD BE THE EQUIVALENT OF THE PROJECT MANAGER ON YOUR END, AND THAT PERSON IS GOING TO BE POINT OF CONTACT FOR FINALIZING OR AT LEAST WORKING WITH THAT INITIAL SCOPE OF WORK, AND THEN LOGISTICAL QUESTIONS.

LIKE FOR EXAMPLE, IF WE FIND DOCUMENTS THAT APPEAR TO BE INCOMPLETE OR, BASED ON WHAT WE LEARNED, IT WOULD MAKE SENSE TO GET ADDITIONAL RECORDS, THEN THAT WOULD BE THE PERSON IS COORDINATION, PRIMARILY.

>> WHO WOULD THAT NORMALLY BE? IS THAT LIKE SOMEBODY IN FINANCE OR?

>> IT COULD. I MEANTIME SOME OF THESE INVESTIGATIONS, WE COULD HAVE SOMEBODY IN FINANCE, SOMETIMES WE COULD HAVE SOMEBODY WHO IS LEGAL COUNSEL, BASICALLY, WHETHER IT'S IN-HOUSE OR EXTERNAL.

BUT, TYPICALLY SOMEBODY IN FINANCE OR SOMEBODY IN THE LEGAL DEPARTMENT WHO KNOW THE WAY IT GOES.

>> SINCE NOBODY IN FINANCE HAS BEEN HERE, ATTORNEY WASN'T HERE DURING THAT PERIOD, I WASN'T HERE DURING THAT PERIOD, AND IT'S CERTAINLY A BOARD DECISION, I MIGHT BE THE ONE TO POINT THEM IN THE RIGHT DIRECTION IF THEY NEED SOMETHING, SINCE I'VE HAD MORE INVOLVEMENT WITH COMMUNITY CENTER, BUT IT'S CERTAINLY YOUR DECISION.

>> THANK YOU. FROM OUR PERSPECTIVE, THERE'S NO PREFERENCES, SOMEBODY THAT CAN COORDINATE LOGISTICS, SOMEBODY THAT HAS THE BACKGROUND, THAT THING.

>> ONE OTHER QUESTION I HAD, THAT, YOU SAID YOU'VE DONE SOME GOVERNMENT CONSTRUCTION TYPE PROJECTS AND INVESTIGATIONS BEFORE, OUTSIDE OF POLICIES AND PROCEDURES OF HOW THINGS ARE APPROVED AND FUNDED AND PAID FOR.

WHAT OTHER TYPES OF FINDINGS WOULD YOU SAY ARE YOUR MOST COMMON FINDINGS THAT MAY BE DETRIMENTAL, JUST COMING FROM YOUR AUDIT? I WOULD SAY TYPICAL THINGS THAT WE FIND.

WHEN AN ENTITY DOES NOT HAVE MATURE POLICIES AND PROCEDURES, THEN THAT OPEN GAPS FOR POTENTIAL ABUSE.

PROCUREMENT CARDS COME TO MIND.

THAT'S VERY TYPICAL.

SOMETIMES IF THERE ARE NO PROTOCOLS FOR APPROVING PURCHASES.

SOME PLACES THAT ARE MATURE, THEY COULD HAVE, LET'S SAY, $5,000.

THIS IS JUST AN EXAMPLE THAT YOU DON'T NEED AS A PERSON WHO IS IN CHARGE OF ANY DEPARTMENT, YOU DON'T NEED ANY APPROVAL, IS YOUR DISCRETION.

BUT THEN LET'S SAY IF IT'S $10,000 OR MORE, THEN YOU NEED TO GET APPROVAL FROM THE NEXT LEVELS, SO PEOPLE SOMETIMES GET CREATIVE AND START SPLITTING INVOICES OR START CIRCUMVENTING PROCESSES OR START USING THAT 5,000 FOR PERSONAL PURCHASES.

ALL OF THOSE THINGS ARE, I'D SAY RELATIVELY COMMON, UNFORTUNATELY.

BUT THAT'S JUST ONE EXAMPLE IN THE CONTEXT OF PROCUREMENT PROCESS.

>> THANK YOU.

>> SURE.

>> ANY OTHER QUESTIONS? THANK YOU GENTLEMAN VERY MUCH. WE APPRECIATE IT.

>> THANK YOU SO MUCH FOR YOUR TIME.

>> THANKS FOR YOUR PRESENTATION.

[02:02:40]

>> THANK YOU FOR INVITING US TO COME AND TO MEET WITH YOU-ALL TODAY.

MY NAME IS EMILY DEBORA.

I'M ASSIGNING DIRECTOR WITH CLA.

I'VE BEEN WITH CLA FOR 23 YEARS.

I'M A CFE, CERTIFIED FRAUD EXAMINER, BEEN WITH CLA IN OUR FORENSICS AND ACCOUNTING AND LITIGATION, AND INVESTIGATIONS DEPARTMENT FOR THAT 23 YEARS I HAVE WORKED PRIMARILY ON FORENSIC ACCOUNTING AND FRAUD INVESTIGATIONS FOR MY 23 YEARS WITH CLA.

>> THANK YOU, EMILY. GOOD EVENING AND THANK YOU FOR THE OPPORTUNITY TO BE HERE.

WE EXCITED ABOUT THE OPPORTUNITY, SO WE'LL TRY TO HIGHLIGHT SOME OF THE QUALIFICATIONS BEHIND OUR PROPOSAL.

MY NAME IS JOEL PEREZ.

I'M A PRINCIPAL WITH CLAS, STATE AND LOCAL GOVERNMENT PRACTICE HERE IN TEXAS.

I'VE BEEN IN THE INDUSTRY FOR ABOUT 30 YEARS WORKING WITH LOCAL MUNICIPALITIES ROUGHOUT THE COURSE OF MY CAREER.

MANY CITIES, COUNTIES, SPECIAL PURPOSE DISTRICTS.

I LEAD FIRMS, ALONG WITH MY COLLEAGUE, OUT OF AUSTIN, STATE AND LOCAL GOVERNMENT IN TEXAS, AND I WANT TO TELL YOU A LITTLE BIT OF MORE ABOUT OUR QUALIFICATIONS HERE OVER THE COURSE OF THIS PRESENTATION, SO I'M LOOKING FORWARD TO THAT.

>> OUR UNDERSTANDING OF THE REQUEST IS THAT YOU'RE SEEKING A FORENSIC AUDIT FOR 2015-2022 SPECIFICALLY FOR THE COMMUNITY CENTER.

THE ENGAGEMENT THAT WE HAVE PROPOSED WOULD BE PERFORMED UNDER THE STATEMENT, THE STANDARDS FOR FORENSIC SERVICES, NO.

01, FOR FRAUD INVESTIGATIONS, FOCUSING ON THE ANOMALIES, POTENTIAL FRAUD, POTENTIAL IRREGULARITIES AS IT RELATES TO PARTICULARLY THE COMMUNITY CENTER.

>> THIS IS AN OVERVIEW ABOUT CLA AND JUST REALLY OUR PRESENCE.

A NATIONAL FOOTPRINT AND THE TAKEAWAY HERE REALLY IS THE POOL OF RESOURCES THAT WE HAVE ACROSS THE COUNTRY SERVICING STATE AND LOCAL GOVERNMENTS AND DIFFERENT INDUSTRIES.

ALTHOUGH A NATIONAL PRESENCE WITH ABOUT 09,000 PEOPLE AND A 130 OFFICES ACROSS THE COUNTRY, WE HAVE A REALLY STRONG LOCAL PRESENCE.

SPECIFICALLY, IN TEXAS, WE HAVE FIVE OFFICES.

WE ARE IN THE DALLAS AREA.

WE HAVE AN OFFICE IN DALLAS,

[02:05:02]

FORT WORTH, HOUSTON, AUSTIN, AND SAN ANTONIO.

OUR STATE AND LOCAL GOVERNMENT PRACTICE IN TEXAS IS ALSO PRETTY SIGNIFICANT, ONE OF OUR LARGEST CLIENTS IS THE STATE OF TEXAS.

BUT WE ALSO HAVE SOME LOCAL MUNICIPALITIES THAT WE WORK WITH.

VERY SUCCESSFUL EXPERIENCE THAT WE'VE HAD IN THE STATE.

THAT'S PART OF MY ROLE WORKING AROUND STATE BOUNDARIES THROUGHOUT THE COURSE OF THE YEAR SERVING STATE AND LOCAL GOVERNMENTS.

I DO THAT FULL TIME AS A DEDICATED PROFESSIONAL TO THE INDUSTRY.

THIS NEXT SLIDE REALLY JUST HIGHLIGHTS THE DEPTH OF OUR EXPERIENCE IN THE INDUSTRY, IN THE STATE AND LOCAL GOVERNMENT PRACTICE.

AS HIGHLIGHTED IN HERE, WE HAVE OVER 60 YEARS OF EXPERIENCE.

WE'VE BEEN DOING THAT SUCCESSFULLY ON A CONSISTENT BASIS IN TUNE OF ABOUT 04,200 PLUS LOCAL MUNICIPALITIES THROUGHOUT THE COURSE OF THAT TIME.

CURRENTLY, THE INDUSTRY LEADERS, IN THIS INDUSTRY ARE SPENT AMONG THE DIFFERENT 130 OFFICES, INCLUDING THE FIVE HERE IN TEXAS.

I MENTIONED EARLIER THE FOCUS OF THAT PRACTICE IS VERY DIVERSE, FROM CITIES, COUNTIES, SPECIAL PURPOSE GOVERNMENTS, TRANSPORTATION AUTHORITIES AS WELL AS A MULTITUDE OF STATE AGENCIES.

LAST YEAR, JUST IN TERMS OF OUR DEATH AND OUR SIZE, WE GENERATED ABOUT $175 MILLION IN SERVICES TO STATE AND LOCAL GOVERNMENTS.

>> THE TEAM THAT WOULD BE SERVING YOU ALL ON THIS CONTRACT WOULD BE MYSELF AS THE ENGAGEMENT DIRECTOR.

AS I SAID, I HAVE 23 YEARS EXPERIENCE IN DOING FORENSIC ACCOUNTING AND THESE TYPES OF ENGAGEMENTS.

MY FOCUS HAS BEEN FOR THAT 23 YEARS ON GOVERNMENT AGENCIES FROM FEDERAL GOVERNMENT CONTRACTS DOWN TO STATE AND LOCAL, TRIBAL AS WELL AS NOT FOR PROFIT CONSTRUCTION, VARIOUS DIFFERENT INDUSTRIES FOR THAT 23 YEARS.

JOEL WOULD BE OUR STATE AND LOCAL TECHNICAL RESOURCE, AND HE IS BASED, AS HE SAID, OUT OF SAN ANTONIO.

WE WOULD ALSO HAVE LEA WYATT, WHO IS ON OUR FORENSICS TEAM.

SHE IS ALSO A CFE, AND SHE IS A LICENSED ATTORNEY PRACTICING IN FORENSIC ACCOUNTING, AND THEN AYLA GRADY, WHO IS A CPA AND A CFE, WITH 10 PLUS YEARS OF EXPERIENCE, WORKING PRIMARILY WITH ALSO STATE AND LOCAL GOVERNMENT AGENCIES AS WELL.

THE CREDENTIALS OF OUR FORENSICS TEAM.

WE HAVE CPAS, WE HAVE CFF, CERTIFIED AND FORENSICS, CFES, CERTIFIED FRAUD EXAMINERS.

LIKE I SAID, WE HAVE ATTORNEYS WHO ARE LICENSED ATTORNEYS PRACTICING IN THE FIELD OF FORENSIC ACCOUNTING.

THE WORK THAT WE HAVE PERFORMED FOR STATE AND LOCAL GOVERNMENT AGENCIES AND FOR MUNICIPALITIES HAVE INCLUDED FRAUD RISK ASSESSMENTS, FRAUD INVESTIGATIONS, FINANCIAL ACCOUNTING, AND BACKGROUND CHECKS AND BACKGROUND INVESTIGATIONS.

OUR APPROACH TO THIS TYPE OF ENGAGEMENT COMES IN FIVE PHASES.

THE FIRST PHASE IS THE PLANNING AND INFORMATION GATHERING PHASE.

THIS INCLUDES INTERVIEWS WITH KEY INDIVIDUALS.

NOW, I UNDERSTAND THAT THE INDIVIDUALS THAT WERE INVOLVED IN MAKING THESE DECISIONS ARE NO LONGER AVAILABLE.

IT WOULD REALLY BE MORE INTERVIEWS OF EXISTING PERSONNEL TO UNDERSTAND THE PROCESSES AND THE PROCEDURES THAT ARE CURRENTLY IN PLACE, AND THE POLICIES AND DECISION MAKING PROCESS FOR IDENTIFYING AND HIRING FIRMS OR CONSTRUCTION COMPANIES.

WHAT IS THE PROCUREMENT PROCESS? WHAT IS THE BID REQUIREMENT? WAS THAT PROCESS FOLLOWED IN THESE PARTICULAR INSTANCES, THOSE TYPES OF THINGS? REALLY INFORMATION GATHERING TO GET A LITTLE BIT OF BACKGROUND ON WHAT THE POLICIES AND THE PROCEDURES CURRENTLY ARE IN PLACE? THEN AN ASSESSMENT, REVIEW THE DOCUMENTATION THAT IS CURRENTLY AVAILABLE, AND LOOK AT WHAT INFORMATION IS THERE, WHAT INFORMATION IS AVAILABLE? WHAT TYPE OF CONCLUSIONS CAN BE DRAWN FROM THE INFORMATION THAT IS ALREADY BEEN PULLED AND THAT IS ALREADY EXISTING AND AVAILABLE.

THEN PERFORMING A FORENSIC EVALUATION AND DATA ANALYSIS.

THIS REALLY IS LOOKING AT THE FINANCIAL ACCOUNTING DATA AND ANALYZING THAT DATA, LOOKING FOR SPECIFIC TRANSACTIONS THAT APPEAR TO BE QUESTIONABLE OR UNREASONABLE, LOOKING FOR ANOMALIES, THOSE TYPES OF THINGS, AND IDENTIFYING WHAT THOSE TRANSACTIONS ARE.

ONCE THOSE TRANSACTIONS ARE IDENTIFIED, THEN LOOK DOING THE TRANSACTION TESTING AND LOOKING AT SOURCE DOCUMENTATION FOR THOSE TRANSACTIONS THAT ARE IN QUESTION.

IT'S NOT 100% RECONCILIATION,

[02:10:02]

IT'S MORE OF A RISK BASED ASSESSMENT AND A RISK BASED REVIEW OF TRANSACTIONS THAT APPEAR TO FALL OUTSIDE OF THE NORM.

AFTER THE TRANSACTION TESTING HAS BEEN COMPLETED, WE THEN COMPILE OUR RESULTS INTO A COMPREHENSIVE REPORT.

THAT REPORT WOULD INCLUDE THE APPROACH THAT WE TOOK, WHAT EVIDENCE WE REVIEWED, WHO WE TALKED TO, WHAT INFORMATION WE GATHER FROM THE INTERVIEWS, AND THEN ANY IDENTIFICATION OF FINDINGS OR EVIDENCE THAT WE FOUND OF ANY WRONGDOING, IF ANY EXISTED, AND IF NOT, THEN THAT IS ALSO IDENTIFIED IN THE REPORT AS WELL.

THEN ANY RECOMMENDATIONS. THE FINAL REPORT, LIKE I SAID, IT INCLUDES AN EXECUTIVE SUMMARY.

HERE'S WHAT WE DID. HERE'S WHO WE TALKED TO.

HERE'S THE INFORMATION THAT WE GATHERED, AND THEN A DETAILED FINDINGS.

THEN IF NECESSARY RECOMMENDATIONS FOR IMPROVEMENTS IN INTERNAL CONTROLS AND FINANCIAL TRANSPARENCY.

TYPICALLY, WHAT WE HAVE FOUND IN THESE SITUATIONS IS EVEN IF THERE IS NO WRONGDOING THAT IS IDENTIFIED, THERE'S ALWAYS A NEED FOR MORE FINANCIAL TRANSPARENCY.

THAT IS DEFINITELY PART OF THE FINDINGS THAT WE WOULD HAVE.

THOSE FINDINGS THEN WOULD BE PRESENTED EITHER HERE IN THIS FORUM OR IN WHATEVER WRITING, IF THAT'S ALL THAT'S REQUIRED IS A WRITTEN REPORT, THEN THAT'S WHAT WE'LL DO IF IT IS REQUIRED, THAT WE COME AND PRESENT OUR FINDINGS, AND WE DO THAT.

THROUGHOUT THE PROCESS, WE COMMIT TO REGULAR COMMUNICATIONS.

WE TYPICALLY LIKE TO HAVE BI-WEEKLY STATUS MEETINGS WITH THOSE KEY INDIVIDUALS WHO ARE LIAISONS WITH THE CITY.

WE DO BI-WEEKLY COMMUNICATION, BI-WEEKLY STATUS UPDATES.

THOSE INCLUDE NOT ONLY THE WORK THAT WE HAVE PERFORMED TO DATE, BUT FEES INCURRED TO DATE SO THAT DECISIONS CAN BE MADE AS TO WHETHER IT MAKES SENSE TO CONTINUE AND MOVE FORWARD WITH ADDITIONAL WORK OR WHETHER IT MAKES SENSE TO BE ABLE TO JUST DRAW SOME CONCLUSIONS AT THAT POINT IN TIME.

THAT'S A LITTLE BIT ABOUT CLA AND WHAT OUR PROCESS IS.

IF THERE'S ANY QUESTIONS.

>> A COUPLE OF THE OTHER ONES THAT WE HAVE.

DO YOU HAVE, LIKE A PHASE 1, PHASE 2 CATEGORY? WOULD THERE BE AN INITIAL CALLS FOR WHAT YOU WOULD SAY WOULD BE PHASE 1?

>> PHASE 1 IS WHERE IT'S MORE OF A INFORMATION GATHERING PHASE.

THAT'S WHAT PHASE 1 IS.

THAT IS WHERE WE WOULD MEET WITH INDIVIDUALS, IDENTIFY WHAT IS THE CONCERNS? WHAT WERE THE CONCERNS THAT WERE RAISED? IT'S A VERY WIDE RANGE OF YEARS.

2015-2022.

THAT'S A VERY LONG PERIOD OF TIME.

BUT IS IT NECESSARY REALLY TO DIG DEEP AND DIVE DEEP INTO ALL FIVE YEARS, OR IS THERE SOME INFORMATION THAT WE COULD GATHER UP FRONT THROUGH INTERVIEWS, THROUGH FACT FINDING, THROUGH DOCUMENT REVIEW? POTENTIALLY E-MAIL REVIEWS.

THESE INDIVIDUALS THAT MADE THESE DECISIONS ARE NO LONGER HERE.

IS IT POSSIBLE TO GET ACCESS TO E-MAILS THAT WE COULD THEN DO A SEARCH ON KEYWORDS AND THINGS LIKE THAT IN E-MAILS THAT WOULD GIVE US SOME BACKGROUND AND INSIGHT AND INFORMATION INTO WHAT'S GOING ON.

WE HAVE A TEAM THAT DOES DIGITAL FORENSICS AND LOOKS AT E-MAILS AND THINGS OF THAT NATURE.

AFTER PHASE 1, THEN WE WOULD MEET AND SAY, THIS IS WHAT WE HAVE FOUND SO FAR.

THIS IS WHAT WE PROPOSE FOR OUR NEXT STEPS, AND THEN WE WOULD MOVE FORWARD AT THAT POINT.

>> YOU DON'T HAVE A TYPICAL COST RANGE FOR PHASE 1?

>> WE DO NOT. IT TYPICALLY IT'S ON AN HOURLY RANGE.

>> GOT YOU.

>> IT DEPENDS ON HOW LONG THOSE INTERVIEWS TAKE, HOW MANY PEOPLE WE NEED TO SPEAK TO.

>> THANK YOU.

>> DO YOU HAVE A LOW END ESTIMATE?

>> THE LOW END ESTIMATE WOULD PROBABLY BE RIGHT AROUND 80,000.

>> PHASE 1.

>> NO. FOR THE WHOLE ENGAGEMENT.

>> WHAT ABOUT FOR PHASE 1? WHAT IF IT WAS DECIDED THAT YOU COULDN'T, THERE WAS NOTHING TO GO FORWARD WITH AFTER PHASE 1.

BECAUSE THOSE THINGS HAPPEN SOMETIMES.

WHAT WOULD YOU SAY YOUR RANGE OF JUST AVERAGE?

>> BETWEEN 10-20,000 IS USUALLY WHAT IT TAKES TO DO THAT INFORMATION GATHERING AND ASSESSMENT STAGE.

>> THANK YOU.

>> I THINK THAT'S ALL THE QUESTIONS THAT WE HAVE.

I APPRECIATE IT. IF WE DON'T HAVE ANY OTHER QUESTIONS,

[02:15:04]

THEN WE'LL GO AHEAD AND WRAP UP THIS PORTION OF IT.

>> THANK YOU.

>> THANK YOU VERY MUCH.

>> THANK YOU.

>> THAT CONCLUDES THE FORENSIC AUDIT PIECE ON THE REGULAR AGENDA, AND THEN WE'LL GO AHEAD AND I WOULD ACTUALLY LIKE TO GO AHEAD AND BREAK FOR EXECUTIVE.

>> DO THE OPEN THE PUBLIC HEARING.

YOU HAVE TO DO A PUBLIC HEARING ON THIS ITEM AND THEN WE'LL GO FOR.

>> FORENSIC AUDIT PIECE.

>> YES, SIR.

>> WE'LL OPEN IT UP FOR PUBLIC HEARING ON THE LINE ITEM 4 FORENSIC AUDIT.

>> CAN YOU PLEASE ANNOUNCE THE TIME FOR THE RECORD.

>> IT IS 8:33.

>> GOOD EVENING, TERENCE JOHNSON, PRINCETON MEADOWS, HERE IN SUPPORT OF THE FORENSIC AUDIT.

I WAS LISTENING TO THE AUDITOR DISCUSSED THAT HOW THERE MAY, I DIDN'T CATCH THE EARLIER ONES, BUT I DON'T KNOW IF THERE WAS ANY PRECONCEIVED NOTION THAT THERE WAS NO ONE HERE FROM THE TIME DURING THE COMMUNITY CENTER WAS FROM THE 2015 TIME SCHEDULE, AND THERE ABSOLUTELY IS.

OUR PARKS DIRECTOR WILL BE ABLE TO HELP WITH THAT.

CHASE BRYANT. YES, PUTTING THAT OUT THERE.

AS FAR AS I KNOW PAYMENT OR FUNDING HAS BECOME ONE OF THE POINT OF QUESTIONS HERE, AND I WOULD JUST LIKE TO SAY THAT, AT LEAST TO GET TO PHASE 1 TO DETERMINE HOW THAT WILL GO WOULD BE HELPFUL JUST TO GET SOME CLARITY.

AGAIN, I THINK THIS IS A GREAT STEP IN THE RIGHT DIRECTION FOR SOME PUBLIC TRUST INTO OUR SYSTEM TO SHOW THAT WE ARE GOING THE EXTRA MILE TO BRING THAT TRANSPARENCY.

DEFINITELY 100% IN SUPPORT OF THE AUDIT IN SELECTING SOMEBODY TONIGHT, IF POSSIBLE. THANK YOU.

>> AM I ON STILL? GENTRY KELTON, 763 BAY BERRY LANE.

I JUST WANTED TO REALLY ECHO THE WORDS THAT MR. JOHNSON SAID AND URGE YOU GUYS TO SELECT SOMEONE AT LEAST TO GET IT STARTED, GO THROUGH PHASE 1, SEE IF THERE'S ANY FINDINGS.

OBVIOUSLY, WE WOULD LIKE TO GO TO AS FAR AS WE CAN, WITH THE AUDIT AND UNCOVER.

I THINK THAT THE PEOPLE HAVE SPOKEN.

WE WANT TRANSPARENCY.

WE WANT TO KNOW THAT EVERYTHING IS ON THE UP AND UP, OR IF EVERYTHING IS NOT, THEN WE NEED TO MOVE FORWARD IN A PRODUCTIVE DIRECTION TO GET EVERYTHING GOING IN THE RIGHT DIRECTION.

I JUST WANTED TO BE VOCAL ABOUT MY SUPPORT OF THE AUDIT, AND URGE YOU TO PLEASE SELECT SOMEBODY TONIGHT, AND LET'S GET IT GOING.

I DON'T WANT TO DELAY ANY ANYMORE. THANK YOU.

>> MAXINE ELIS, 914 BLUETT.

I WAS HERE WHEN YOU WERE FIRST DISCUSSING THE FORENSIC AUDIT, AND I GAVE YOU MY THOUGHTS THEN.

MY THOUGHTS ARE THE SAME.

CITY RESIDENTS.

WE ALL HAVE DOUBTS IN THE CITY STAFF, THE CITY GOVERNMENT AT THE MOMENT.

YOU ALL VOTED TO DO THE AUDIT, WHICH WAS A STEP IN THE RIGHT DIRECTION TO SHOW THE RESIDENTS.

YOU ALL ARE RESIDENTS ALSO.

I KNOW TWO OF YOU VOTED AGAINST IT, BUT THE REST OF YOU VOTED FOR THE AUDIT, BECAUSE YOU ALSO AS RESIDENTS CARE ABOUT OUR CITY.

THAT'S WHY YOU'RE UP HERE.

WE'RE HERE BECAUSE WE CARE ABOUT OUR CITY. WE NEED THE AUDIT.

WE NEED TO SHOW THE CITY OF PRINCETON THAT THINGS ARE RIGHT, OR THERE'S AN ERROR SOMEWHERE, AND IF THERE'S AN ERROR, LET'S FIX THE ERROR.

LET'S MAKE IT RIGHT SO IT DOESN'T HAPPEN GOING FORWARD. THANK YOU.

>> IF THERE IS NOBODY ELSE, THEN WE WILL GO AHEAD AND CLOSE THE PUBLIC HEARING FOR THE LINE ITEM 2025-019 FORENSIC AUDIT.

THE TIME IS 8:37.

>> I'M GOING TO GO AHEAD AND PUT IT INTO EXECUTIVE SO THAT WE CAN HAVE

[L. EXECUTIVE SESSION]

SOME DISCUSSION ON THIS AND THE ITEMS ON OUR EXECUTIVE AGENDA.

THEN WE'LL COME BACK OUT AND GET INTO THE PUBLIC HEARING AND BUDGET APPROVAL.

THE TIME IS 8:37.

>> MR. CHAIRMAN, PLEASE READ THE LANGUAGE, AND THEN,

[02:20:02]

UNDER 551.071, COULD YOU SPECIFICALLY LIST THE FORENSIC AUDIT ITEM IF THEY DESIRE TO DISCUSS IT IN EXECUTIVE SESSION?

>> YES.

>> THANK YOU.

>> EXECUTIVE SESSION UNDER TERMS OF CHAPTER 551 OF THE TEXAS GOVERNMENT CODE, THE BOARD MAY ENTER INTO A CLOSED SESSION OR EXECUTIVE SESSION TO DISCUSS ANY ITEMS LISTED OR REFERENCED.

ON A POSTED AGENDA.

NOTICE FOR THIS MEETING IS NECESSARY UNDER THE FOLLOWING EXCEPTIONS TO THE OPEN MEETINGS ACT UNDER THE TEXAS GOVERNMENT CODE.

SECTION 551.071 TEXAS GOVERNMENT CODE, CONSULTATION WITH THE CITY ATTORNEY ON A MATTER IN WHICH THE DEPUTY OF THE ATTORNEY OF THE GOVERNMENTAL BODY, UNDER THE TEXAS DISCIPLINARY RULES OF PROFESSIONAL CONDUCT OF THE STATE BAR OF TEXAS, CONFLICTS WITH THIS CHAPTER ON ANY POSTED AGENDA ITEMS. WE'VE GOT FUTURE LAND OPPORTUNITIES.

WE ALSO, I BELIEVE, PROJECT HOME RUN IS LISTED ON HERE AS WELL, AND THEN REVIEW CURRENT STAFF AND STAFFING NEEDS.

THEN ALSO WE WOULD ALSO LIKE TO ADD ON THERE SOME DISCUSSION ON THE FORENSIC AUDIT.

I THINK THAT'S IT.

>> THEN KEEP READING OFF THE OTHER PROSIONS, TOO, SORRY.

>> THEN, TEXAS GOVERNMENT CODE 551.074 PERSONNEL MATTERS.

THIS CHAPTER DOES NOT REQUIRE A GOVERNMENTAL BODY TO CONDUCT AN OPEN MEETING TO DELIBERATE THE APPOINTMENT, EMPLOYMENT, EVALUATION, REASSIGNMENT, DUTIES, DISCIPLINE, OR DISMISSAL OF A PUBLIC OFFICER OR EMPLOYEE, OR TO HEAR A COMPLAINT OR CHARGE AGAINST AN OFFICER OR EMPLOYEE.

I THINK WE'RE GOOD. THE TIME IS NOW 10:39 FOR THE EXECUTIVE.

>> HE WHO DRAWS A SHORT STRAW HAS TO BE CHAIRMAN AND READ ALL THAT EVERY TIME YOU GO INTO EXECUTIVE SESSION.

BOARD, BEFORE YOU HEAD INTO THE OTHER ROOM, JUST REAL QUICKLY.

THIS IS DE SHAWA'S LAST CDC MEETING.

BEFORE WE GO IN AND THE PEOPLE MAY LEAVE, I JUST WANT TO GET ON THE RECORD HOW MUCH I APPRECIATE EVERYTHING SHE'S DONE FOR US IN HER TIME HERE AND HOW EXCITED WE ARE FOR HER FUTURE ENDEAVORS.

I'M GOING TO PAY FOR THIS PROBABLY TOMORROW, BECAUSE I'M EMBARRASSING HER.

BUT TRULY, I WISH YOU NOTHING BUT THE BEST.

I APPRECIATE EVERYTHING YOU'VE DONE FOR US, AND YOU'VE GOT GOOD THINGS AHEAD FOR YOU [APPLAUSE].

YOU EVEN GOT TO KNOW. YOU GOT THE OVATION.

>> THE TIME IS 9:42, COMING OUT OF EXECUTIVE SESSION.

THERE'S NO ACTION ON EXECUTIVE SESSION.

WE WILL MOVE BACK INTO THE REGULAR AGENDA.

START BACK AT 2025-019 FORENSIC AUDIT.

I DON'T NEED TO READ THAT WHOLE THING AGAIN, DO I? THAT LONG SENTENCE.

WE'LL GO BACK INTO 2025-019 FORENSIC AUDIT, AND I WILL ENTERTAIN A MOTION, IF ANYBODY WOULD LIKE TO MAKE ONE ON THE FORENSIC AUDIT.

>> I'LL MAKE A MOTION THAT WE MOVE FORWARD.

WE WERE AWARDING A CONTRACT TO PARTICIPANT NUMBER 2 SO THAT THE CEO COULD NEGOTIATE A CONTRACT.

>> FOR THE RECORD.

>> FOR THE RECORD, THAT'S WEAVER TED WELL.

>> THANKS, CHAIR.

>> SECOND.

>> IT WAS PART OF THAT MOTION TO HAVE ME EXECUTE A CONTRACT? I DIDN'T HEAR THE LAST PART OF IT?

>> YES.

>> THANK YOU.

>> TO SEE HOW TO EXECUTE A CONTRACT.

>> THAT'S BEEN SECONDED. WE WILL VOTE.

>> THE MODES AND SHOWING UP.

>> WE HAVE THAT AT 6:1 AND PASSES.

MOVING ON TO ITEM NUMBER 2025-021,

[K. 2025- 020 PCDC Public Hearing and Budget Approval Conduct a public hearing and consider, discuss, and act on the approval of the Princeton CDC FY25/26 budget and recommending to City Council its final approval.]

PCDC PUBLIC HEARING AND BUDGET APPROVAL.

CONDUCT A PUBLIC HEARING AND CONSIDER, DISCUSS, AND ACT ON THE APPROVAL OF THE PRINCETON CDC FY'25, '26 BUDGET, AND RECOMMEND TO THE CITY.

I THINK THAT'S THE END OF THAT SENTENCE.

UNLESS SOMETHING GOT CUT OFF THERE.

>> IT'S ON THE NEXT PAGE FOR THE CITY COUNCIL FOR ITS FINAL APPROVAL.

>> OH, COUNSEL, IT'S FINAL APPROVAL. IT'S AN ODD PLACEMENT.

>> SHANNA, DO YOU HAVE AN EXTRA COPY OF THE BUDGET THAT I CAN BORROW, PLEASE?

[02:25:07]

I THINK I GRABBED THE WRONG ONE.

I DON'T THINK YOU GUYS WANT TO APPROVE THE EDC'S BUDGETS TONIGHT, DO YOU? THEY'VE ALREADY DONE YET. YOU PROBABLY WANT TO DO THE CDC.

>> IF WE CAN MAKE SOME ADJUSTMENTS.

[LAUGHTER]