BOARD OF EDUCATION OF THE CITY OF LOS ANGELES Governing Board of the Los Angeles Unified School District AUGMENTED AUDIT, BUSINESS, AND TECHNOLOGY COMMITTEE NOTES 333 South Beaudry Avenue, Board Room 1:00 p.m., Thursday, September 15, 2005 Committee Members Mr. David Tokofsky, Chair Pro Term Mr. John Lauritzen Outside Committee Member Mr. Alan Warhaftig Dr. John Hwang Staff Present Mr. Dan Isaacs, Chief Operating Officer Mr. Carey Peck, Manager, Vendor Services Ms. Margaret Klee, Chief Information Officer Mr. Jerry Thornton, Inspector General Office Committee Contact Person Ms. Haydee Urita (213) 241-4143 Mr. Juan De La Cruz (213) 241-6085 Ms. Sonia Reza (213) 241-6090 - - - - The meeting convened at 1:12 p.m. - - - - OFFICE OF INSPECTOR GENERAL (OIG) ANNUAL REPORT Mr. Jerry Thornton, Acting Inspector General, made a brief presentation on the Annual Report for the Office of the Inspector General. He indicated that the office conducted 105 audits, which included 16 formal audit reports and 78 contract audit reports. He mentioned that the Office of the Inspector General also opened 226 investigations, issued 60 reports of investigations, processed 358 hotline complaints, and conducted 6 Fraud Awareness Seminars. Mr. Thornton proceeded to discuss the different units under his supervision: Office of Investigation - It consists of 16 investigators. Many of them of advanced degrees as well as professional certifications. Results of investigations that find malfeasance are handled administratively by District staff or referred to a prosecutorial agency. Aug. Audit, Bus. & Technology Com. 1
Contract Audit Unit This unit is comprised of District Audit staff and auditors from 10 Certified Public Accounting firms. The audits are conducted in accordance with the Government Auditing Standards, which are issued by the Comptroller General of the United States and the Federal Acquisition Regulations. He mentioned that the unit also conducts reviews, surveys and other services in accordance with the Statement on Standards of Consulting Services issued by the American Institute of Certified Public Accountants. Mr. Dan Isaacs, Chief Operating Officer, requested a report on how the audits are being conducted and the preparation of these reports. Mr. Thornton responded to questions by Committee Members. REPLACING DISTRICT-WIDE RADIO NETWORK Ms. Megan Klee, Chief Information Officer, gave a presentation on the District-wide radio network. She mentioned that radio frequencies have been assigned to serve KLCS, Transportation, Emergency Notifications, School Police, and School Base Stations. She indicated that the Federal Communications Commission has informed the District that in 2006 its current licenses would be affected by an agreement reached with Nextel. The District owned frequencies would be moved. A process for reimbursement of the cost of the change is being developed by the Federal Communications Commission. Ms. Klee stated that funds have been requested as a part of the November Bond Measure to replace the radio system and meet the current needs of School Police, Transportation, Emergency Notifications, and school sites. If the bond measure does not pass, then alternatives must be considered. Ms. Klee mentioned that the current radio system is only capable of voice analog communications and will not allow any type of digital transmissions. The District s radio system equipment is over 23 years old and replacement parts are no longer available. The cost of the equipment and installation for a new radio system would be approximately $26.6 million. Ms. Klee responded to questions by Committee Members. SMALL BUSINESS ENTERPRIES (SBE) COMMITTEE REPORT Mr. Carey Peck from the Procurement Division gave a presentation on the 4 th Quarter 2005 Small Business Enterprise Program utilization. He mentioned that, as of this quarter, 30.4% of the contracts were awarded to small businesses. Aug. Audit, Bus. & Technology Com. 2
Mr. Peck mentioned that they are working to allow firms to download bids and be notified of amendments, additions, and extensions of Request for Proposals. He stated that the next steps are to continue adding Small Business Enterprise language to all contracts and to extend the existing Small Business Enterprise program. Mr. Peck indicated that the Greater Los Angeles Vendor Fair would take place April 12, 2006. Ms. Veronica Soto from the Facilities Division reported on the Facilities Services Division Fourth Quarter and Fiscal Year-End 2004-2005 Small Business Enterprise program. She stated that the Board of Education policy that established the 25% Small Business Enterprise participation goal on all contracts serves as the guiding principle. Ms. Soto mentioned that in the fourth quarter the Facilities Services Division awarded 530 contracts in New Construction, Existing Facilities, Architecture, Engineering Services and Professional Services, of which the total Small Business Enterprises participation level is approximately 79%. Ms. Soto stated that during the fourth quarter, the Small Business Program conducted extensive outreach to businesses and trade organizations representing the diversity of the Los Angeles area, and hosted events and workshops to promote and facilitate the participation of Small Business Enterprise firms in the District s school construction program. Ms. Soto indicated that the Facilities Division continues to undertake procedural actions to provide the Board with a more comprehensive Small Business Enterprise utilization report and to improve the efficiency of collecting and reporting contract awards to Small Business Enterprise firms. Mr. Peck and Ms. Soto responded to questions by Committee Members. INTEGRATED STUDENT INFORMATION SYSTEM/WELLIGENT UPDATE Mr. Jack Kelanic, Deputy Director of Information Systems, gave a presentation on the Welligent System. He explained that the Welligent System is the major Special Education component of the Integrated Student Information System (ISIS). The key areas of functionality include: online Individualized Education Program (IEP), Medi-Cal Billing, Health Insurance, and Special Education and Health Service tracking. Once fully implemented, the Welligent System will also include as components: Transportation Services, Formal and Informal Individualized Education Program Dispute Resolution, Contracted Special Education Services (NPS, NPA) and Student Health Card. Mr. Kelanic indicated that Welligent is the primary data source for six outcomes and is a supplemental source of two outcomes being tracked for the Chandra Smith Modified Aug. Audit, Bus. & Technology Com. 3
Consent Decree. To date approximately 750 schools, 50 non-public schools, and 38 Charter School are using the Welligent System. Mr. Kelanic highlighted the past success of the program and stated they will have challenges meeting the rollout schedule for the remainder of this calendar year. He mentioned the need to establish procedures and routine training for Resource Specialist Teachers, and new Employee s Spanish translation. At this time 1400 new users have been added to the system. Some schools are still struggling with the new technology. Mr. Kelanic responded to questions from Committee Members. APPROVAL OF THE MINUTES FOR DECEMBER 16, 2004, JANUARY 27, 2005, APRIL 28, 2005 AND JUNE 23, 2005 The minutes, as presented, were approved by Committee Members. - - - - - The meeting adjourned at 3:00 p.m. - - - - Aug. Audit, Bus. & Technology Com. 4
BOARD OF EDUCATION OF THE CITY OF LOS ANGELES Governing Board of the Los Angeles Unified School District Meeting Agenda for the Augmented Audit, Business, and Technology (ABT) Committee Thursday, September 15, 2005, 1:00 PM 333 South Beaudry Avenue, Board Room Los Angeles, CA 90017 Committee Members José Huizar, Chair Jon Lauritzen David Tokofsky District Staff Member Jerry Thornton, Acting Inspector General Committee Contact Persons Juan Carlos De La Cruz TEL: (213) 241-6383 FAX: (213) 241-8467 Superintendent s Representative Dan Isaacs, Chief Operating Officer Haydee Urita TEL: (213) 241-6180 FAX: (213) 241-8459 Outside Members Dr. John Hwang Alan Warhaftig SPECIAL REPORTS AND PRESENTATIONS None. ACTION ITEMS Oral reports with written documents that require Committee action 1. Approval of the Minutes for the December 16, 2004, January 27, 2005, April 28, 2005 and June 23, 2005 ABT Committee Meetings The ABT Committee will take action on approving the draft minutes for the December 16, 2004, January 27, 2005, April 28, 2005 and June 23, 2005 ABT Committee meetings. INFORMATION ITEMS Oral presentations with or without written documents 2. Office of Inspector General (OIG) Annual Report Jerry Thornton (Acting Inspector General) will present the OIG s Annual Report. Aug. Audit, Bus. & Technology Com. 5
3. Replacing District-Wide Radio Network Megan Klee (Chief information Officer) will make a presentation on replacing the District-wide radio network. 4. Small Business Enterprise (SBE) Committee Report Carey Peck (Procurement Services Group Vendor Services Manager and District Small Business Enterprise [SBE] Program Coordinator) and Veronica Soto (Facilities Small Business Program Manager) will present the 4th Quarter 2005 SBE Utilization Report. 5. ISIS/Welligent Update Jack Kelanic (Deputy Director of Information Systems) and Daniel Cruz (Director of Student Information Systems) will present an update on Welligent (special education component of ISIS). OTHER ITEMS 6. Items Referred to the Committee by the Board of Education or Committee of the Whole The Committee may consider and act upon motions, Board Reports, or other business referred to it by the Board of Education or Committee of the Whole, with respect to any properly posted matter at a meeting immediately preceding this committee meeting, where the time between that meeting and this committee meeting is less than 72 hours. Members of the public are encouraged to review the order of business or agenda for the meetings of the Board of Education or Committee of the Whole. 7. Public Comments Persons who wish to address the Committee may sign up at the meeting. For more information on the Audit, Business and Technology Committee, go to: http://www.lausd.k12.ca.us/bfat Aug. Audit, Bus. & Technology Com. 6