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Audit Buzz Newsletter
October 2022
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In this issue of Audit Buzz, we summarize the status of current engagements, provide a case scenario on conflicts of interest in the Knowledge Hive, and offer a training opportunity for FCPS employees. Stay up to date with OAG's 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 October 12 Audit Committee meeting, OAG presented the FY22 Information Technology Platform Implementation and Hardware Acquisition Management Audit report.
- The audit recommendation follow-up as of July 31, 2022 has been completed and will be discussed in the upcoming meeting.
- In addition to the ongoing Continuous Monitoring, the FY22 Local School Activity Funds (LSAF) Audit and Succession Planning and Leadership Development Audit are currently in process.
- OAG continues to serve as the project liaison for the comprehensive program review of FCPS’ special education, which American Institutes for Research (AIR) was contracted to perform. AIR presented their Final Report during the School Board’s October 4 work session. Watch the video. The School Board will hold a second session to discuss a framework for FCPS’ Special Education Enhancement Plan at the November 15 work session.
Knowledge Hive
Case Scenario - Conflict of Interest
 Pictured: Esther Ko's conversation with Office of Design and Construction
This month, the Office of Design and Construction had an engaging discussion with OAG around the topic of Conflict of Interest, where we introduced the Conflict of Interest Act and FCPS Policy 4430:
To ensure that (i) Virginia’s citizen legislative members fully represent the public in the legislative process and (ii) Virginia’s citizens maintain the highest trust in their public officers and employees, the General Assembly enacted the Virginia State and Local Government Conflict of Interests Act (Code of Virginia § 2.2-3100, et seq.) [the “Act”], a body of law that defines and prohibits inappropriate conflicts and is applicable to all state and local government officers and employees.
To establish the commitment of the School Board to ensure compliance with the uniform standards of conduct contained in the Act, including the avoidance of any appearance of impropriety arising out of any conflict between employees’ personal and/or economic interests and their official duties, FCPS adopted Policy 4430 Conflict of Interest–Employees. In the event of any conflict or inconsistency between Policy 4430 and the Act, the terms of the Act shall govern.
We went through the following case scenario which sparked further discussion. Try the case scenario for yourself:
Abigail is a project manager in the IT department for a large public university in Virginia. For every IT-related project that the university engages in, Abigail’s office is required to solicit bids from interested potential vendors. She is directly involved with the bid process, awarding contracts, overseeing the project completion, and authorizing payments for contracted services.
Abigail’s husband Michael is also in the tech field, serving as a director for iTech Smart Solutions, a small regional firm that specializes in designing and deploying IT solutions for private and public entities. iTech has bid on (and successfully been awarded) many contracts before and during Abigail’s tenure with the university. Abigail regularly oversees iTech contracts in the same capacity as she would for any other contracted vendor. However, Abigail has never disclosed her personal interest with the vendor to the university.
- Does anything bother you about this situation? Why or why not?
- How might this appear to outside observers (e.g., competing vendors, taxpayers, press, Commonwealth attorney, etc.)?
- If you were Abigail, how would you handle the situation differently?
Let’s maintain a professional skepticism mindset in carrying out the work at FCPS.
Did you Know?
OAG Outreach and Education: Continuing Professional Education (CPE) Opportunity
OAG is registered with the National Association of State Boards of Accountancy (NASBA) and serves as the sponsor for the FCPS Continuing Professional Education (CPE) programs, dedicated to support FCPS employees with complimentary CPE credits required by various certification agencies. OAG is pleased to offer a new NASBA training opportunity for FCPS employees to earn up to 3 CPE credits:
Course: All you need to know about FCPS’ Annual Comprehensive Financial Report (ACFR), the annual mandatory external financial and federal grant audits
Date: December 2, 2022
Time: 9:00 AM - 12:00 PM
Do you know that annually, the Comptroller Office produces an ACFR which contains meaningful information regarding FCPS financial healthiness? In addition, FCPS receives two mandatory external audits annually over: (1) financial statements, and (2) federal grants required by the Office of Management and Budget Uniform Guidance (this audit used to be called “single audit”). Many of you may have requested to provide information to external auditors, and may not be aware of the end-product. In this training, we will cover (a) the key components of ACFR; (b) things you need to know for the two external audits; (c) how these audits are related to my daily work at FCPS; and (d) the common audit pitfalls.
FCPS employees click here to sign-up for the training.
Next Audit Committee Meeting
The next Audit Committee meeting is scheduled for November 9, 2022 at 4:30 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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