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Audit Buzz Newsletter
June 2022
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In this issue of Audit Buzz, we summarize the status of current engagements, and spotlight the Local School Activity Funds (LSAF) audit process in the Knowledge Hive. We will take a short summer break after this month newsletter, and will resume in September 2022. Stay up to date with Office of Auditor General (OAG) current and future work by subscribing to Audit Buzz.
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 June 22 Audit Committee meeting, OAG presented on the following agenda items (full agenda and meeting documents can be found on BoardDocs):
- Staff Update
- Auditor General Update
- Status of FY22 Internal Audit Engagements
- Status of FY22 Internal Inquiries
- FY22 Business Process Audits
- Department of Human Resources
- Bucknell Elementary School
- FY22 ESSER III Continuous Monitoring Results
- Audit Follow-Up Status
- Project Management (Division-Wide) Audit discussion
- In addition to the ongoing Continuous Monitoring, both the Information Technology (IT) Platform Implementation and Hardware Acquisition & Management audit and Legal audit are in process.
- 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. AIR completed all data collection activities, including focus groups and classroom observations, per the approved scope of work. AIR is currently analyzing all the data collected. The final (Year 2) report will be presented to the School Board between September and November 2022.
Below is a high-level timeline of the review:
Knowledge Hive
Local School Activity Funds Audit Process
A Local School Activity Funds (LSAF) audit is a review of LSAF funds and year-end cash balances. Annually, the Virginia Department of Education (VDOE) requires each school district to complete an audit of the local school activity funds which is completed by the Office of the Auditor General (OAG). Local school activity funds are defined by VDOE as “all funds derived from extracurricular school activities, such as entertainment, athletic contest, cafeteria, club dues, etc., and from any and all activities of the school involving personnel, students, or property (internal accounts)”.
OAG has two objectives for the LSAF audit: 1) to verify that local activity school funds and year-end cash reporting are not materially misstated and 2) to determine the level of compliance with policies and procedures. OAG meets these objectives by determining if cash balances are fairly stated, assessing compliance with applicable regulations and policies, determining if internal controls are adequate and functioning as needed, and determining if transactions are reasonable and do not appear to be fraudulent (completed as part of the Continuous Monitoring procedures throughout the fiscal year and reported in the LSAF audit report).
To meet these objectives, OAG first sends out an Internal Control Questionnaire (ICQ) and an Audit Representative letter to all sites to be completed and returned. The ICQ helps OAG better understand the internal controls that are in place. Next, OAG reviews end of the year financial documents to determine that accounts are fairly stated. OAG uses the documents that schools provided to FCPS Financial Services during the close out process, so no additional work is needed from the school's administrative assistants/finance technicians unless clarification is needed. Once all work is completed, schools receive a memo with any findings found and the audit report with all findings is presented to the Audit Committee.
Did you Know?
Deputy Auditor General
We are sad to announce that Chris Migliaccio, current Deputy Auditor General, will depart soon from OAG. During his tenure in serving OAG, Chris demonstrated superb leadership and brought tremendous internal audit insight to further the OAG infrastructure and processes. We would like to wish Chis all the best in his next endeavor! In the meantime, we have posted this job opening at Job Opportunities.
Next Audit Committee Meeting
The next Audit Committee meeting will be scheduled for a date/time to be determined in September 2022. 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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