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Audit Buzz Newsletter
April 2021
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In this issue of Audit Buzz, we summarize the status of current engagements and present information on Enterprise Risk Management in this month's Knowledge Hive.
Prior editions of Audit Buzz are archived here 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.
Engagement and Office Updates
Current Engagement Update
- At the April 14, 2021 Audit Committee meeting, OAG presented on the following agenda items:
- Auditor General Updates
- FY21 Business Process Audits (BPA)
- BPA Summary
- Business Process Audit Report ERFC
- Business Process Audit Report Westbriar ES
- Business Process Audit Report Canterbury Woods ES
- Business Process Audit Report Mount Vernon HS
- Continuous monitoring FY21 Q1 and Q2 results
- Audit Follow-Up Status
- FY21 Fidelity of Implementation of School Board Actions Audit Report
Audit Reports are available here on OAG's website.
- The Hiring and Onboarding Practices audit, which is being performed in accordance with the FY 2021 OAG Audit Plan, is complete we expect to present the results at the May 2021 Audit Committee meeting.
- OAG continues to serve as the project liaison for a comprehensive program review of FCPS’ special education, which American Institutes for Research (AIR) was contracted to perform. The first year report is scheduled to be presented to the School Board in July 2021.
- OAG is currently performing its annual risk assessment process, with the goal being to identify and prioritize audit topics for the FY 2022 Audit Plan.
Knowledge Hive
In this entry into the Knowledge Hive, we provide insight into Enterprise Risk Management (ERM) and also highlight an upcoming OAG training on a similar topic, “Managing Risk in a School Division: An Introduction to Enterprise Risk Management and Risk Assessment.”
Enterprise Risk Management
What keeps you up at night? Hopefully, nothing from work prevents you from getting a sound night of sleep. However, this is a question that auditors commonly use to obtain stakeholder perspective on the risky areas of the operations they oversee.
Risk implies uncertainty about deviations from one or more expected outcomes. A robust risk management plan can assist stakeholders in minimizing future disruptions to these outcomes by proactively addressing risks and taking steps to mitigate them. Proactively addressing risk can help to ensure there is a culture of awareness, and that employees think outside of the box with the mindset of a risk manager.
The Institute of Internal Auditors defines Enterprise Risk Management (ERM) as a “structured, consistent, and continuous process across the whole organization for identifying, assessing, deciding on responses to, and reporting on opportunities and threats that affect the achievement of its objectives.” In other words, ERM is a valuable decision-making tool to systematically identify and prepare for the risks which threaten organizational goals, objectives, and outcomes.
Traditionally, risk management has been viewed through the lens of an office, department, or process, where risks are managed within their function and independently of each other. However, this strategy may overlook risks which affect organization strategic goals and objectives, or can even create additional risks as functions become siloed, while still sharing responsibilities. As more organizations have multi-departmental functions or operations, it is important to proactively discover a way to advance risk oversight for the entire organization.
As risk management evolves, the industry continues to discover new methods organizations can use to identify, assess, and manage the risks unique to their organization. An effective ERM can provide a new perspective to an organization to collaboratively identify and respond to risks. Other benefits of implementing an ERM include:
- Engagement of managers at multiple layers to establish connections between associated risks found in different aspects of the organization’s operations and connecting it to the impact it may have at the organization level.
- Assisting management in responding to major program interruptions or catastrophes in a timely and efficient manner.
- Ensures business continuity for meeting program objectives, goals, and successful performance.
For FCPS employees, if you would like to learn more about risk management, there is a virtual training opportunity on April 23 from 9am to 12pm. The training objective is on “Managing Risk in a School Division: An Introduction to Enterprise Risk Management and Risk Assessment”. Registration is via MyPDE and space is limited.
Did you Know?
Next Audit Committee Meeting
The next Audit Committee meeting is scheduled for 4:30 PM on May 26, 2021.
The agenda will be available on BoardDocs prior to the meeting.
Fraud, Waste, and Abuse Hotline:
(571) 423-1333 (anonymous voicemail)
InternalAudit@fcps.edu (email is not anonymous)
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