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Audit Buzz Newsletter
October 2021
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In this issue of Audit Buzz, we summarize the status of current engagements, provide information on how audits are conducted in part 3 of our The What, When, Why and How of audits series in the Knowledge Hive, spotlight an upcoming OAG training, and highlight new OAG team members.
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 October 27, Audit Committee meeting, OAG presented on the following agenda items (full agenda can be found on BoardDocs):
- The Business Continuity Plan and Community Use audits are currently ongoing.
- FY22 Continuous Monitoring testing for quarter one is underway. Continuous Monitoring is a year long process that is reported at the end of the fiscal year along with the end of year local school activity funds report. OAG will be reaching out to select schools to request documentation and schedule on site visits.
- 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 researchers completed the Year 1 data collection activities and are working on identifying emerging themes. The Year 1 Interim Report and Year 1 Interim Report Presentation were presented to the School Board at the work session on September 21.
Knowledge Hive
This is the final part of a three part series about Audit. Part 1: What is an audit? was published in the June 2021 issue of Audit Buzz and discussed the common types of audits, internal audit being one. Part 2: When will I be audited and why? was published in the September 2021 issue of Audit Buzz and discussed how topics are selected for audit. In this final issue of Audits-The What, When, Why and How, we will discuss the phases of an audit and how the audit is conducted.
Audits – The What, When, Why, and How
Part 3: How will the audit be conducted?
Topics selected for audit are developed through an independent risk assessment process which considers risk factors and input from the School Board, Audit Committee, FCPS leadership and other FCPS employees. The culmination of this process is the OAG Annual Audit Plan (the FY22 Audit Plan can be found here). The audits listed in the annual audit plan are then scheduled and each are performed in phases: planning, execution, reporting, and follow-up.
Planning
Planning is the phase where the auditor obtains a comprehensive understanding of the audit topic to finalize the scope and objectives of the audit. This process entails reviewing procedures, organization charts, relevant regulations, and the associated budget. In addition, auditors interview staff and collect, summarize, and evaluate information that will be used to identify potential risks. The final step in the planning phase is to develop an audit program which will be used to direct the work to be performed in the execution phase.
Execution (Fieldwork)
Execution involves testing and evaluating key controls of the functions being audited. Auditors use a variety of review techniques including observing, interviewing, sampling, analyzing, and verifying to determine whether controls are adequate and whether operations are conducted in an efficient and effective manner. Sufficient evidence will be developed to support audit findings and recommendations for improvement.
Reporting
Reporting begins with a written draft report. This draft report is discussed with the audit client at an exit conference to review the audit findings and recommendations. Departmental management is asked to provide feedback and comments on the draft report. Meanwhile, OAG verifies that each statement of fact in the report is supported in the audit working papers. These processes help ensure that the report is balanced and accurate. The final audit report summarizes key issues, findings, recommendations, and includes management's response. Audit reports are issued to the School Board Audit Committee, the appropriate leadership team member, and departmental management. The reports are public documents and are available in BoardDocs and on the OAG Reports webpage.
Follow-Up
Follow-Up is a periodic review in which the progress and implementation status of agreed upon actions are assessed and validated. OAG performs follow-up activities as recommendations become due and reports the results to the Audit Committee.
Auditing is a collaborative effort and the lines of communication are open to all parties involved throughout the process. The auditors work closely with the audit client to ensure the accuracy of the auditor’s assessments and observations.
Visit the Auditor General website to learn more about OAG?
Did you Know?
Procurement Services Online Class Helps You Strategize Purchasing
Join the Office of Auditor General (OAG) and Procurement Services on Friday, November 12, 2021, from 9am to 12pm, to learn about planning and strategizing the best route to purchase goods and services. This training will help staff understand the laws and policies related to procurement. During the training, Procurement Services will cover the nuts and bolts of procurement management, and OAG will walk through scenarios so that participants are prepared to minimize opportunities of fraud, waste, and abuse in this area. Registration is open to FCPS employees via MyPDE: Procurement - Begin with the End in Mind
Welcome Recent and New OAG Hires
Chris Migliaccio, Deputy Auditor General: Chris joined OAG as the Deputy Auditor General in October 2021.
Chris has over twenty years of professional auditing experience. Prior to joining OAG, Chris was with Society for Human Resource Management (SHRM) in Alexandria, VA, where he served as the manager of Internal Audit Services. He prepared and executed the annual audit plan based on a risk-based approach to add value to the organization by focusing on high-risk and strategic areas. He expanded the organization's internal audit coverage by adopting a more agile approach to auditing, including adopting a continuous controls auditing program. He served as the liaison with SHRM’s external auditors, providing assistance on the annual financial statement and IT audits. Chris also presented updates on audit activities to the audit committee and executive team members.
Chris is both a Certified Public Accountant (CPA) and Certified Fraud Examiner (CFE). Chris is actively involved in helping elevate the internal audit profession by volunteering with the Northern Virginia Chapter of the Institute of Internal Auditors (IIA), currently serving as the President-elect.
Welcome Chris to the OAG team!
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Luke Robertson, Auditor I: Luke joined OAG as an Auditor I in April 2021.
Luke has been with FCPS since moving to Fairfax County in 2013 as a sophomore in high school. After graduating from West Springfield High School in 2016, Luke attended the University of Mary Washington (UMW). During his college breaks, Luke worked in the warehouse at the Forte Center in Springfield. He first joined OAG in July 2019 for a five-week summer internship, and returned to work as an intern upon graduating from UMW in May 2020.
During his time with OAG, Luke has worked collaboratively with school administrations during performance of the Local School Activity Funds (LSAF) audit. For those who haven't already met Luke, welcome him to the OAG team!
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Next Audit Committee Meeting
The next Audit Committee meeting is scheduled for December 9, 2021 at 4:00 PM. Please refer to BoardDocs for meeting information once it becomes available.
Fraud, Waste, and Abuse Hotline:
(571) 423-1333 (anonymous voicemail)
InternalAudit@fcps.edu (email is not anonymous)
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