Audit Buzz Newsletter Summer 2018

FY 2018 Year in Review

During FY 2018, Office of Auditor General (OAG) completed eight performance audits, 20 Business Process Turnover audits, and continue to perform the annual Local School Activity Funds audit.  We appreciate the cooperation and courtesies extended to our staff by FCPS management and staff during FY 2018 and in the future.

During the summer, as part of our FY 2018 Audit Plan, we are hard at work implementing audit software which will enable us to increase the efficiency and effectiveness of our audits, as well as enhance our reporting capabilities.  

Recently Completed Audits and Other Updates

Adult and Community Education (ACE) Audit

ACE's mission is to provide lifelong literacy and educational opportunities for all residents through creative use of facilities and implementation of best academic and business practices.  ACE places an emphasis on career and work readiness along with premier adult English as a Second Language (ESOL) programs.  Additionally, ACE offers a wide range of training opportunities in apprenticeship, business, information technology, health and medical, and trade and industrial programs.  They also offer enrichment programs for kindergarten to adult including culinary arts, behind the wheel, and world languages.

We performed an audit of the ACE business model, including validating cost drivers and earned revenue, evaluating controls and processes, and analyzing the ability for ACE to be financially self-supporting. 

We found that:

• The current ACE operating model does not support financial self-sufficiency.
• Some revenues and expenditures were misclassified. Specifically, certain revenues and expenditures were recorded as miscellaneous instead of program specific revenues and expenditures.

For background information, detailed findings, and recommendations, see the full June 2018 ACE Audit Report here on the OAG website.  

Facilities Maintenance Audit

Office of Facilities Management (OFM) is responsible for routine preventive and corrective building and grounds maintenance services, facilities infrastructure repair and replacement, and energy conservation in the design and operation of FCPS facilities.  OFM initiatives help provide a safe and comfortable environment that supports teaching and learning.  Maintenance and repair of all mechanical, electrical, and structural equipment and systems is provided by technicians located in four decentralized satellite maintenance facilities.  A fifth centralized facility is responsible for grounds maintenance and centralized trades functions. 

We performed an audit of the effectiveness and efficiency of the facilities maintenance program operated by the OFM.  The audit covered key processes and internal controls from FY 2017 through the first half of FY 2018.

We found that:

• OFM lacks the adequate number of tradespersons to sufficiently maintain FCPS assets and facilities.
• There is an imminent need to increase capital and major maintenance funds to replace assets as they reach the end of their expected life cycles.

• FCPS has a noncompliance issue with bleacher inspections.
• FCPS has not performed an asset-level facility condition assessment (FCA) to adequately validate the deferred maintenance backlog to assist with prioritization of capital renewal needs.
• Inefficiencies exist related to Teamworks (computerized maintenance management system that serves as OFM’s integrated facilities management system).

For background information, detailed findings, and recommendations, see the full June 2018 Facilities Maintenance Audit Report here on the OAG website.  

Workers’ Compensation Audit

If an employee is injured on the job or has sustained an occupational illness, the employee may be eligible to receive workers' compensation benefits.  Human Resources oversees the workers’ compensation program, which is managed by a third party administrator (TPA), Liberty Life Assurance Company of Boston, a wholly owned subsidiary of Liberty Mutual Insurance.

We performed an audit of the FY 2017 expenditures incurred by FCPS and processes and controls over the workers' compensation program.

We found that:

• FCPS’ workers compensation costs increased by approximately $4.8 million, or 50%, from FY 2016 to FY 2017 due to increase in claims paid and the related incurred but not reported expenditures. 
• The Human Resources Workers’ Compensation Unit generally demonstrated adequate claims administration, but risk management of the workers’ compensation program can be strengthened by ensuring TPA compliance with contractual requirements, enhancing FCPS oversight on the TPA, and strategically using claims data.
• Recurring safety training and screening can be strengthened.

For additional background information, detailed findings, and recommendations, see the full May 2018 Workers’ Compensation Audit Report here on the OAG website.  

Welcome Recent and New OAG Hires

• Karen A. Bryan - Executive Administrative Assistant I/II

Current Audit Projects and Those on the Horizon

• Continuous auditing of Local School Activity Funds (LSAF) and Business Process/Turnover Audits (BPTA).
• Implementation of audit software, Pentana.
• OAG has presented its FY 2019 Audit Plan to the School Board and Audit Committee, which is scheduled to be voted on by the full School Board later this month.  Once approved, the FY 2019 Audit Plan will be posted to the OAG website.

Fraud, Waste & Abuse Hotline:
(571) 423-1333 (anonymous voicemail)
InternalAudit@fcps.edu (email is not anonymous)

Office of Auditor General Website | Audit Buzz Archive