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Audit Buzz Newsletter
Fall 2019
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In this issue of Audit Buzz, we summarize the results of the recently completed Local School Activity Funds (LSAF) Financial Statement Audit for the period ending June 30, 2019, highlight OAG's September 2019 meeting with the Inspectorate General of Indonesian Ministry of Education, and recap the Auditor General's November 2019 presentation to the Education Committee of the Fairfax County Federation of Citizens Association. We also provide a look into current work, including the ongoing Performance Audit of Grants Administration, Accounting, and Monitoring and the Performance Audit of Time and Attendance, as well as upcoming OAG projects.
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 2019 Local School Activity Funds Financial Statement Audit
In accordance with the approved FY 2019 audit plan and state regulations, OAG audited the local school activity funds (LSAF) accounts for Fairfax County Public Schools for the year ended June 30, 2019. The primary purpose of the audit was to determine if cash balances were properly stated as of June 30, 2019, but an important secondary purpose was to determine the level of compliance with FCPS policies and procedures. The school activity accounts for 203 sites in the division were examined as of year-end.
In OAG's opinion, the financial statements were presented fairly and were properly stated as of June 30, 2019. While OAG did not note any findings that had a material effect on the financial statements, our review identified exceptions related to compliance with policies and procedures.
The following charts summarize the number of sites with reportable observations in the three areas examined: Cash Receipts, Cash Disbursements, and Accounting Procedures. Figures below include sites which may have multiple observations in one area (e.g. multiple instances of timely deposit observations) or sites which may have observations in multiple areas (i.e. Cash Receipts and Accounting Procedures).
Descriptions and examples of the various observation types are included in the FY 2019 LSAF Observations report. The full School Activity Funds Audit and School Activity Funds Observations Noted reports are available on the OAG Audit Reports webpage here.
Inspectorate General of Indonesian Ministry of Education Delegation Visit
On September 11, 2019, OAG welcomed 14 audit leaders from the Inspectorate General of Indonesian Ministry of Education. Their visit was funded through a US Agency of International Development (USAID) program, with the focus to strengthen Indonesia’s community of accountability by providing integrated capacity building efforts for the judiciary, executive, and independent agencies; civil society; media; and the private sector at both the national and subnational levels. Our audit committee chair, Ms. Karen Keys-Gamarra, and the entire OAG team attended and shared our day-to-day work in enhancing accountability within FCPS and audit best practices. This exchange furthered OAG’s goal of becoming a world class audit function.
Dr. Francisco Duran also presented on FCPS’ equity efforts at the request of the delegation.
Fairfax County Federation of Citizens Association Presentation
On November 18, 2019, Esther Ko, Auditor General, presented to the Education Committee of the Fairfax County Federation of Citizens Association. Topics such as OAG's mission and reporting structure, recently completed and upcoming audits, and the purpose and usage of the Fraud, Waste, and Abuse Hotline were discussed extensively during the meeting. Esther also highlighted Audit Buzz and encouraged the citizens to subscribe! OAG appreciates this opportunity to have an in-depth discussion with our citizen community.
Current Work
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Performance Audit of Grants Administration, Accounting, and Monitoring - The preliminary objectives of this audit are to determine if there is an adequate management control framework in place with respect to governance and internal control to effectively support grant related activities; review and assess proper use and allocation of grant funds, and review compliance with the related grant terms and conditions. This performance audit began in September 2019.
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Performance Audit of Time and Attendance - The preliminary audit objectives are to review the existing control framework of time and attendance, including policies, regulations, and legislation (such as the Fair Labor Standards Act); determine whether the systems and practices are adequate to detect and deter non-compliance; obtain and review report of the Statement on Standards for Attestation Engagements (SSAE) No. 16, Reporting on Controls at a Service Organization of the MyTime service provider; assess the overall operating effectiveness of MyTime and identify areas of improvement for time and attendance management. This performance audit began in October 2019.
Upcoming OAG Projects
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FY 2021 Risk Assessment - OAG is conducting an annual risk assessment to identify and prioritize audit topics. The risk assessment focuses on identifying threats and vulnerabilities directly related to FCPS operations. The result is a combination of qualitative and quantitative data that assists in the prioritization of audit topics. OAG will meet with Leadership Team and other FCPS staff over the upcoming months.
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OAG eLearnIT - Be on the lookout for OAG's interactive eLearnIT course: Internal Audits - Concepts for Principals. This course is designed to help school principals understand the work of OAG and provides information on the various types of school-based engagements performed by our office, describes common school-based exceptions, and highlights potential red flags to be on the lookout for. This course is expected to become available to principals during 2020.
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Business Process Audits - These audits are performed on an ad hoc basis throughout the year, generally as a result of a change in key personnel (principal or finance technician) or as a result of continuous monitoring results. The scope of a Business Process Audit covers procurement, revenues, disbursements, and reconciliations. Both appropriated and non-appropriated funds are reviewed during the audit.
Fraud, Waste & Abuse Hotline:
(571) 423-1333 (anonymous voicemail)
InternalAudit@fcps.edu (email is not anonymous)
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