Office of Auditor General - Audit Buzz, Fall 2018 Issue

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Audit Buzz Newsletter

Fall 2018         

As we approach the end of 2018, OAG remains hard at work fulfilling our mission of promoting FCPS' achievement of its strategic goals by independently determining whether ongoing processes for controlling fiscal and administrative operations and performance throughout FCPS are adequately designed, functioning in an efficient, effective manner, and fully accountable to the citizens of Fairfax County.

In this issue of Audit Buzz, we summarize the results of the FY 2018 local school activity funds (LSAF) audit, which is performed annually, and provide an update into OAG's implementation of Pentana, an audit software which will enhance audit efficiency and effectiveness. We also provide a look into current and future OAG work, including the ongoing Instructional Services and Information Technology Specific Contract audit and the Use of Trades and Staffing Reserve audit.

Once presented to the FCPS Audit Committee, OAG audit reports are available to the public via BoardDocs on OAG's website

As always, we appreciate the cooperation and courtesies extended to our staff by FCPS management and staff during all past, current, and future audit engagements.

Recently Completed Audits and Other Updates

FY 2018 LSAF Audit

In accordance with the approved FY 2018 audit plan and state regulations, OAG audited FCPS LSAF for the year ended June 30, 2018. The primary purpose of the audit was to determine if cash balances were properly stated as of June 30, 2018, but an important secondary purpose was to determine the level of compliance with policies and procedures. The school activity accounts were examined as of year-end at the 204 sites in the division.

In OAG's opinion, the financial statements were presented fairly and were properly stated as of June 30, 2018. While we did not note any findings that had a material effect on the financial statements, our review of the schools identified exceptions related to compliance with policies and procedures.  The number of exceptions per school ranged from no exceptions to more than 10 exceptions, as follows:

Exception count per school pie chart

During the audit, we examined compliance with policies and procedures in the following areas:

   (1) Cash Receipts

   (2) Cash Disbursements

   (3) Accounting Procedures

We identified the following number of schools with (1) cash receipts exceptions:

Cash receipts exception count

We identified the following number of schools with (2) cash disbursements exceptions:

Cash disbursement exception count

We identified the following number of schools with (3) accounting procedures exceptions:

Accounting procedures exception count

For additional information, see the full October 2018 FY 2018 'School Activity Funds Audit' and 'School Activity Funds Audit with Exceptions Noted' Reports here on the OAG website.  

Pentana Implementation

During FY 2018, after a competitive request for proposal (RFP) process, OAG implemented Pentana, an audit software which enhances audit efficiency and effectiveness, improves internal management reporting, and automates many existing tasks. 

Pentana implementation timeline

While Pentana went live in August 2018, there is still much work to be done. In addition to continued configuration, OAG will implement features such as enhanced audit recommendation follow-up as well as post-audit client surveys.

Current Work

  • Specific Contracts Audit - OAG is currently performing an audit of Instructional Services (ISD) and Information Technology (DIT) specific contracts. The primary objectives of the audit are to determine whether procurement controls/processes are appropriately followed by each department and evaluate controls in place to ensure accountability and monitoring of vendor performance and delivery of services and goods.
  • Use of Trades and Staffing Reserve Audit - OAG is currently performing an audit of the effectiveness and efficiency of the trades and staffing reserve processes, and whether usage is consistent with applicable federal, state, and FCPS policies and regulations.
  • Business Process Turnover Audits - These audits are performed on an ad-hoc basis depending upon key school employee turnover.

Upcoming OAG Projects

  • FY 2020 Risk Assessment - OAG is conducting the annual risk assessment to evaluate areas against a variety of risk factors including financial implication, likelihood of errors, and frequency of audits, prior audit issues, complexity, and turnover.The result is a combination of qualitative and quantitative data that assists in the prioritization of audit topics. 
  • Medicaid Reimbursement Program - The preliminary objectives of this audit are to assess whether FCPS Medicaid Reimbursement program follows the relevant compliance requirements; determine if EasyTrac, the system established in 2015 to generate Medicaid claims for submission to the Virginia Department of Medical Assistance Services, serves its intended purpose; and to evaluate the effectiveness of FCPS’ process to identify qualifying students for Medicaid benefits.
  • Safety and Security Compliance - The preliminary objectives of this audit is to validate whether FCPS follows the Code of Virginia (22.1-279.8) and the relevant requirements, and meets the school safety reporting requirements of the Virginia Department of Education
  • Payroll Oversight and Process - The preliminary objective of this audit is to determine whether payroll practices were in compliance with applicable federal and state requirements, established FCPS policies, regulations and procedures, and whether these practices and relevant internal controls effectively reduce the risk of potential payroll irregularities. 
  • FY 2019 LSAF Audit - OAG will perform an audit of FCPS local school activity funds (LSAF) for the year ended June 30, 2019.

Welcome Recent and New OAG Hires

Danielle Moore image

Danielle Moore - Auditor III - Danielle joined OAG as an Auditor III on September 4, 2018. Prior to joining OAG, she served as the Assistant Audit Manager for the Fulton County Government Office of the County Auditor in Atlanta, Georgia. 

Heidi Flanagan image

Heidi Flanagan - Executive Administrative Assistant I/II - Heidi joined OAG as the EAA on November 12, 2018. She previously served as the finance technician at Lake Braddock Secondary School.   

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