 |
|
Audit Buzz Newsletter
December 2023
|
Engagement and Office Updates
In this issue of the Audit Buzz, we summarize the status of current engagements; give special thanks to Audit Committee School Board members; explain the risk assessment and audit plan process in the Knowledge Hive; and highlight the recent hire of an audit intern within Office of Auditor General (OAG).
Prior editions of Audit Buzz are archived here on OAG's website.
OAG wishes a safe and happy holidays to all!
As always, we appreciate the cooperation and courtesies extended to our staff by Fairfax County Public Schools (FCPS) management and staff during all past, current, and future audit engagements.
Current Engagement Update
The December 6 Audit Committee meeting was cancelled. OAG plans to present the following agenda items at the next Audit Committee meeting:
In addition to the ongoing Continuous Monitoring, we are currently conducting the Facilities Maintenance audit and the FY25 Risk Assessment process.
Special Thanks and Recognition
OAG would like to take this opportunity to thank the School Board members for their continuous support for our work. In particular, we are grateful for our current Audit Committee School Board members, Ms. Tamara Derenak Kaufax (Chair), Ms. Karen Corbett Sanders, Ms. Karen Keys-Gamarra, and Ms. Laura Jane Cohen. We are also looking forward to receiving new School Board members joining the Audit Committee in January 2024.
Knowledge Hive
Risk Assessment and Audit Plan
OAG performs internal audits of FCPS operations to 1) improve their effectiveness and efficiency, and 2) deter and detect potential fraud, waste, and abuse. OAG reports to the Audit Committee of the FCPS School Board.
One of OAG’s most important jobs is the development of the Annual Risk Assessment and Audit Plan. A work plan (audit plan) is required by FCPS Policy 1105. Each year, the school board votes on whether to approve it. The Plan identifies the risks and challenges facing FCPS and its sub-units, and then develops a list of audit areas for the coming year prioritized by their exposure to risk. The resulting document presents a detailed picture of the FCPS risk environment while providing OAG with a map of its future audit work.
We begin the exercise by defining a universe of audit subjects starting with those that we considered the previous years. Some will be carried forward while others have become less relevant. Additional subjects are added throughout the year from a variety of sources such as: training events, School Board meetings, news and education media, past external and internal audits, and suggestions from leadership and staff. In addition, we monitor the types of audits conducted in the past year by other large school districts and take note of their subject, number, and importance of the findings.
After the audit universe is set, the process of prioritization begins. OAG has developed a list of factors to assess the audit risks involved with each subject so that the most urgently needed work is performed first. The factors include:
- Financial exposure – amount of loss (if any) to FCPS if there are problems.
- Reputational harm – loss of confidence in FCPS by stakeholders can have profound consequences.
- Control weaknesses – weak internal and IT controls are always a threat, and resource constraints such as employee turnover or budget cuts can lead to problems.
- Compliance regime – number and complexity of regulations and policies related to the activity raise its risk level.
- Past audits, findings, history – has the area had issues in the past?
- Survey feedback from FCPS leadership, management, and staff – people that know FCPS the best are a critical source. During last year’s risk assessment OAG interviewed or surveyed more than 150 staff.
- Audit findings from similar school districts – OAG monitors the annual reports of approximate 30 other school districts for audit trends and innovative ideas.
Sometimes situational concerns may affect our selections. For example, we recognize that our skills and methods have limitations and may not be well suited to solving every problem. Therefore, we may refrain from initiating an audit (e.g., specialized matters related to educational programs). Inopportune timing may cause us to postpone a review if a department or its work processes are undergoing significant changes. Finally, an activity that has been assessed as lower risk and never been audited might be subjected to a cursory review for just that reason (lack of previous coverage).
Did you Know?
Welcome Recent and New OAG Hires
Noura Saulath, Audit Intern
Noura joined OAG as an intern in September 2023. She is a Junior studying Business with a concentration in Accounting at George Mason University in Fairfax.
When Noura is not at OAG or school, she works as a shift manager at a fast casual Indian BBQ restaurant in her hometown.
Noura is excited to learn more about the auditing profession and develop her professional skills as an intern with OAG.
“I have always wanted to work with a school at some point in my career. Everyday, I learn something new about the way FCPS and the auditing profession work. I look forward to what the rest of my time here holds and I am grateful for all the people I have met so far and will meet later down the road at FCPS.”
Please welcome Noura to OAG!
|
Next Audit Committee Meeting
The next Audit Committee meeting will be scheduled in January 2024. 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)
|
