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Audit Buzz Newsletter
April 2024
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Engagement and Office Updates
In this issue of the Audit Buzz, we provide an update on current engagements, discuss “The Vital Role of Hotlines in Combating Fraud, Waste, and Abuse” in the Knowledge Hive; and promote the upcoming Internal Audit Awareness Month.
Prior editions of Audit Buzz are archived here on Office of Auditor General's (OAG) website.
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
At the April 30 Audit Committee meeting, we presented the following agenda items:
- Auditor General Updates
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FY24 Continuous Monitoring Q1 and Q2 Results - OAG presented the results of the continuous monitoring procedures conducted for appropriated and non-appropriated transactions. Out of 102 sites in the sampling population, 65 sites had no exceptions; 17 sites had exceptions noted in three or fewer areas; 2 sites had exceptions noted in four areas; and 18 sites did not have any transactions appear in the random transactions samples and were not selected for site visit testing. Exceptions were related to timely completion of procurement card and bank reconciliations, pre-approval of disbursements and procurement card transactions, timely payment, and sufficient documentation.
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Audit Follow-Up Status -OAG provided the status of audit follow-up as of January 31, 2024. OAG will continue to follow up on a quarterly basis.
Knowledge Hive
The Vital Role of Hotlines in Combating Fraud, Waste, and Abuse
At the Office of Auditor General, we strive to promote our Fraud, Waste, and Abuse hotline as often as we can. Hotlines for reporting fraud, waste, and abuse are vital tools in protecting resources, especially in organizations like Fairfax County Public Schools, where the vast majority of the operating revenue comes from local, state, and federal funds. But what exactly is the effect of maintaining a hotline?
According to the Association of Certified Fraud Examiners’ (ACFE) “Occupational Fraud 2022: A Report to the Nations,” hotlines facilitate early detection of fraudulent activities, with tips being the most common method of detection (43% of cases). Proactive measures such as a hotline offer anonymity to whistleblowers, which can encourage the reporting of misconduct without fear of retaliation. When individuals feel more comfortable reporting fraud, organizations can intervene quicker and help reduce financial losses.
The same ACFE report states that the median loss per incident of fraud for local government organizations was $125,000. In addition, fraud losses were twice as high at organizations without hotlines versus those with.
Maintaining a hotline signals a commitment to ethical conduct and oversight and can allow organizations to protect valuable resources through faster detection.
Do you know how to report fraud to OAG?
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By phone: The fraud, waste, and abuse hotline at 571-423-1333 may be accessed 24 hours a day, 7 days a week. This is a voicemail box only; you may leave a message. Callers may remain anonymous as long as you do not leave your name and number.
Office of Auditor General main line is 571-423-1320. If we are helping others at the time of your call, please leave your name and number and someone will return your call.
Did you Know?
Internal Audit Awareness Month
To raise awareness and recognize the Office of Auditor General (OAG), May has been designated as the Internal Audit Awareness Month by the Institute of Internal Auditors.
Did you know OAG serves and operates at the direction of the School Board? The School Board Audit Committee serves to promote the independence and objectivity of OAG by ensuring broad audit coverage, adequate consideration of audit reports, and appropriate action on recommendations. OAG has an important purpose within FCPS and performs a variety of roles and responsibilities.
FCPS employees, please join OAG to celebrate Internal Audit Awareness Month on May 22 (Wednesday) outside the Gatehouse Cafe from 11:00 AM to 12:30 PM. Learn more about our office by asking questions and testing your knowledge with trivia games. Of course, in true OAG fashion, there will be chances to win prizes! In addition, there will be an online scavenger hunt game that ALL FCPS employees can join. Here is the link. It will open on May 15 (Wednesday) at 7:30 AM. We can’t wait to see your responses!
Upcoming Events
Next Audit Committee Meeting
The next Audit Committee meeting is scheduled for May 13 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)
Online Submission Form
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