Alief ISD School Board and Staff Publicly Attack Fellow Board Member for Upholding Her Duties

#101903 

2-AR18-R01/17/2019 

July 10, 2019 

Mr. HD Chambers, Superintendent 

Alief Independent School District 

4250 Cook Road 

Houston, TX 77072 

Dear Mr. Chambers: 

The Financial Compliance Division at the Texas Education Agency (TEA) has reviewed the Alief Independent School District’s annual financial and compliance report (AFR) for the year ended August 31, 2018, in accordance with Texas Education Code §44.008(e).  We have prepared the following comments for you and your school district’s board of trustees to review. 

Financial Compliance Division Comments 

We note that your district reported a deficit in unrestricted net position on the Statement of Net Position (Exhibit A-1, page 27). We also note that during the fiscal year 2018, the District adopted Government Accounting Standards Board (GASB) Statement No. 75 Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. With GASB 75, the District must assume its proportionate share of the Net Other Postemployment Benefits (OPEB) Liability of the Teacher Retirement System of Texas and some deferred resources outflows and deferred resources inflows related to the District’s OPEB plan in the Statement of Net Position. Adoption of GASB 75 required a prior period adjustment 0f ($314,438,370) to report the effect of GASB 75 retroactively. Furthermore, as a result of recognizing the Net OPEB liability, the District ended the fiscal year with a deficit in the unrestricted net position in the amount of $230,798,282. 
The schedule of expenditures of federal awards (Exhibit K-1, page 10) identifies Spark Park (CDBG) grant project (CFDA #14.218 – passed through City of Houston) by “N/A” instead of by the identifying number assigned by the pass-through entity as required. 

To view a copy of the district’s AFR submitted to TEA, refer to the website located at https://tea4avwaylon.tea.state.tx.us/audit/PDFviewer.asp 

Although your district’s AFR and working papers of the auditor remain subject to review by appropriate state and federal agency officials, we consider the AFR review closed. 

We thank you and your auditor for your diligence and cooperation in completing the AFR. Please contact Gayle Escobedo at iona.escobedo@tea.texas.gov or (512) 475-2372 for questions. 

Alief Independent School District 
RE: 2017-2018 AFR 
July 10, 2019 

Sincerely, 

Paul Moreno 
Financial Desk Reviews Manager 
Financial Compliance Division 

PM/ge 

cc: Ms. Ann Williams, Board President, Alief Independent School District Deanna Wentz, Chief Financial Officer, Alief Independent School District Whitley Penn LLP - Houston