Audit Buzz Newsletter November 2024

Engagement and Office Updates

In this issue of the Audit Buzz, we provide an update on current engagements; explain Accountability and the Five E's in the Knowledge Hive; and offer a training opportunity for Fairfax County Public Schools (FCPS) employees.

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 FCPS management and staff during all past, current, and future audit engagements.

Here is a challenge to test your audit knowledge, before we begin this issue:

Say What You See

*Hint: this is two words

Current Engagement Update

At the November 18 Audit Committee meeting, OAG presented the following agenda items:

• OAG Engagement Status Updates  - All approved audits are on schedule. OAG is also in the process of conducting the fiscal year (FY) 2026 risk assessment. 
• OAG Internal Inquiry Updates - From July 2024 to November 2024, OAG received 28 inquiries of concerns which might have implications on fraud, waste, and abuse defined per FCPS Policy 1107.
• Year-Over-Year Comparison of Local School Activity Funds (LSAF) Audit Results - OAG presented the year over year comparison of LSAF results for FY 2022, 2023 and 2024. 
• OAG Audit Technology - OAG provided an overview of the DataSnipper software used by the office to import audit documentation into an Excel workpaper format. The tool is helpful in ensuring quality and efficiency in the audit process. 
• Peer Review Updates - OAG provided insight on the recent peer review as required by Government Auditing Standards (Yellow Book) in which require the office to obtain an independent peer review every three years. OAG also discussed passing the recent review, lessons learnt and other experiences with serving as a peer reviewer.  

Knowledge Hive

Accountability and the Five E’s

Did you know there are five E’s in accountability? Just by reading the word you might think that claim is total nonsense, but not according to the auditing standards that OAG follows.

As we have discussed in previous publications, OAG performs our work according to the requirements found within the Generally Accepted Government Auditing Standards (GAGAS), commonly known as the Yellow Book – a reference to its glaring yellow cover.  These standards provide guidance for auditors of federal, state, and local governments and ensure that audits are conducted with objectivity, integrity, and professional competence.  OAG follows these standards to enhance our credibility, improve our efficiency, and promote accountability.

So, where are the E’s?

Okay, fine; we will admit that technically, there are no E’s in the word “accountability;” but what about the concept of accountability and how it is measured? The concept of accountability for use of public resources and government authority is key to FCPS’ governing processes.  Per GAGAS, accountability of public resources exists when the public knows that government services are provided effectively, efficiently, economically, ethically, and equitably within the context of statutory boundaries of the specific government program.

Questions to ask:

When conducting performance audits, auditors can consider the five E’s by asking the following questions:

• Is the program successfully accomplishing what it was created to do?
• How well is the program using its allocated resources?
• Are the costs of operating the program reasonable, and are there opportunities to increase productivity?
• Is the program reinforcing, encouraging, and applying fair and just practices?
• Is the program reaching and serving all targeted stakeholders in a fair way?

How do we measure?

The five E’s can be used to help auditors design testing steps to measure accountability by:

• Effectiveness – evaluating the extent to which a program is achieving its goals and objectives.
• Efficiency – assessing the costs and resources used to achieve program results (could include monetary resources, time-allocation, or human capital management).
• Economy – assessing the costs and resources used to achieve program results (mostly concerned with monetary resources and outputs).
• Ethics – assessing the tone management sets for how the organization will operate, the culture throughout all levels of the organization, the proper use of resources and valuable information, and the external parties the organization conducts business with.
• Equity – evaluating access to or distribution of public resources within the context of statutory parameters.

By considering the five E’s during our engagements, OAG can design testing steps that will adequately evaluate how accountable FCPS is to all its stakeholders, both internal and external; therefore, providing management with conclusions that assist in improving performance and operations.

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: Both Sides of an OAG Audit – Looking through the Lens of the Auditor and the Audit Client

Date: December 6, 2024

Time: 9:00 AM - 12:00 PM

Do you want to learn more about the audit process or how to prepare for an audit conducted by OAG. OAG conducts performance audits in accordance with the annual audit plan approved by the School Board. These audits are conducted according to the generally accepted auditing standards (GAGAS) framework that provides guidance for performing high-quality audit work with competence, integrity, objectivity, and independence.

This training is designed for all FCPS employees and will focus on how OAG adheres to GAGAS and ensures audit independence throughout the audit process.  OAG will also delve into audits recently conducted including the FY22 Community Use Audit and the FY24 Food and Nutrition Audit. Staff from Community Use and Food and Nutrition Services will share an overview of their office and discuss the audit from their perspective.

FCPS employees may sign-up for the training on MyPDE.

Upcoming Events 

Next Audit Committee Meeting

The next Audit Committee meeting is scheduled for January 13, 2025 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

[Answer: Risk Assessment]

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