Cobre board approves fiscal service contract

By Lynn Janes

The Cobre Consolidated School Board held a special meeting on April 14, 2026. Board members in attendance included Hector Carrillo, , Gilbert Guadiana, Agelina Hardin, and David Wilguess. Interim Superintendent Randal Piper also attended. Gabriella Begay did not attend.

Public input

George Esqueda serves on the finance committee for Cobre Consolidated School District. He had gone online, downloaded the agreement and reviewed it along with the statement of work associated with the agreement with Vertex. They provide financial services to K-12 schools. He had reached out to Carrillo and Piper with some questions and wanted to meet. Carrillo had not been able to attend but he had met with Piper. A representative from PED (public education department) had been on the call a long with Begay for a short time. He realized the board could not comment because this will be public comment, but he would stay until they addressed it as an action item and would answer any questions on his concerns.

Action items

The board approved the fiscal service contract with Vertex Education after a lot of discussion and presentation from Bryan Runyan with Vertex in Albuquerque. Piper said he had looked at several different contractors that would be available to provide fiscal services. The first one he contacted did not have the resources to handle what needed to be done, referring to the three audits in arrears. When he had contacted Vertex, they said they had a team that could provide the service. Piper said they had been the company he used in Lordsburg, when he had to release a business manager. The company has also taken on Alamogordo Public Schools four times larger than Cobre. He had met with PED and the conversation had come down to their need to hire a contractor, and it had been non-negotiable. He added the PED can withhold SEG (student equalization guarantee) funding because of being behind on three audits. PED had already done it to a few districts. "We have to be able to move forward and need a team to work with the staff. It will take more than one person." He had looked all the way back to 2017 bond and capital assets. It will take more than one person. "Hopefully a team can come in and some progress can be made avoiding another forensic audit." Part of the reason for this decision had been to aid in the transition with the new superintendent.

Carrillo said it has been his understanding that the contract will be a CES (cooperative educational services) procured contract and does not have to go out for RFP (request for proposal). This also has to do with the status of the audits and district chief financial officer (CFO) and has little choice now. Piper verified his understanding.

Piper said the terms of the contract would be five years and an automatic renewal clause. As long as they have a statement of work it would continue but if not, the contract would be over.

Runyan said their job would not be to evaluate the staff but to train and support them. They would be learning the district's policies and following them. However, if they see policies that could be improved on, they will suggest those changes, but it will be up to the district to make or not make those changes.

Runyan said he had started his career in public accounting pursuing external audits for the state of New Mexico. Audits will be taken very seriously. The board and Piper continue to ask Runyan many questions about his company and what they have done.

The question about the length of the term came up again and the board wanted to shorten it. Runyan explained for them to do the work they needed to do had been the reason for the five-year contract. Carrillo said he had been led to understand they could not negotiate the terms because it has been preauthorized in the procurement process. If they want to negotiate, they will have to put out an RFP. Piper said yes, he understood correctly.

Esqueda wanted to say up front he has not been for this or against it. However, being a member of the finance committee, he wanted to clarify the two separate documents. The master services agreement will be for the term of five years. So basically, that master services agreement will be like the umbrella. The bigger picture, the statement of work will be like a purchase order or a task order that's assigned against the master services agreement, which has the five-year term.

The statement of work documents provided will only be in effect through June 30th of 2027. At that point in time, the statement of work for these services that have been outlined in this document, then that statement of work, that's the termination date or expiration date associated with statement of work number one. Esqueda thought if the district would want to go into a statement of work number two for some kind of other services that K-12 offers, then they would need to negotiate a separate statement of work. Within that statement of work would have its own terms in regard to the scope of work and the duration of that statement of work. They have two separate things going on, one will be the master services agreement, and one will be the statement of work. Vertex offers many services that could be something the district would want later on. Vertex operates in several states.

Carrillo expressed concern over the current employees and if they would be replaced. Piper said he had already met with them and told them their jobs would not be in jeopardy, and they would be rehired. They will turn in their letter of intent. Frank Ryan, finance director, will not be involved.

Runyan and his team will be at the April 20, 2026, meeting and be at the board meeting if they want them to explain more. The next day they will be meeting with the staff. Carrillo asked if the district would be paying for their travel and expenses to come. Runyan said no, it will be part of the contract. Given the scope of the work, it will be important for his team to sit down and meet with the district.

Carrillo thank Runyan for experience with other boards and was sure he understood what a difficult decision this has been. Having him provide information along with Esqueda had been very helpful. Piper had recommended approval of both documents with Vertex.

Meeting adjourned.