Audit Buzz Newsletter March 2025

Engagement and Office Updates

In this issue of the Audit Buzz, we provide an update on current engagements and an article on Understanding and Preventing Time Fraud in the Workplace; and our celebration the May Internal Audit Awareness Month.

Prior editions of Audit Buzz are archived here on Office of Auditor General (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.

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

Say What You See

*Hint: this is three words

Current Engagement Update

At the March 17 Audit Committee meeting, OAG presented the following agenda items:

• OAG Engagement Status Updates – All approved audits are on schedule. In addition, OAG is in the process of finalizing the fiscal year 2026 risk assessment and audit topics. 
• OAG Internal Inquiry Updates – From July 1, 2024, to March 6, 2025, OAG received 44 inquiries of concerns.  OAG reviewed them in accordance with FCPS Policy 1107 and FCPS Regulation 1410.
• FY25 Procurement Process Audit – OAG identified three moderate risk findings, one low risk finding and one observation in this audit.  The moderate risk findings were related to conflicting directives and guidance regarding authority, operational inefficiencies impacting vendor solicitation and limited performance monitoring for procurement activities. 
• FY25 Student Disciplinary Audit– OAG completed this audit, and the results are exempt from disclosure under Virginia Code Section § 2.2-3711(A)(8).
• Audit Follow-up – OAG presented the follow-up status of open audit recommendations as of January 31.

Knowledge Hive

Understanding and Preventing Time Fraud in the Workplace

Time fraud is an unfortunate yet common issue that every organization faces, impacting productivity, trust, and often resulting in financial losses. It occurs when employees falsify their work hours, leading to inflated payroll expenses. Understanding how time fraud is committed and how supervisors can take proactive measures to prevent is critical for maintaining a healthy work environment.

Time fraud can manifest in various ways. Some employees may come in late or leave early while still getting paid for a full day’s work. Others might collaborate with colleagues to falsify records, creating a network of deceit. Other forms include inflated breaks or unpaid overtime claims.

Such practices not only hurt the organization's financially but can also erode morale and breed distrust among employees. When some individuals take advantage of the system, it can lead to resentment from those who adhere to the rules, jeopardizing team cohesion.

Supervisors are the frontline defense against time fraud in the workplace. Their awareness, vigilance, and ability to implement effective strategies play a vital role in curbing this behavior. Here are several approaches supervisors can adopt:

1. Conduct Regular Audits: Routine audits of timekeeping records can help identify patterns or anomalies that suggest time fraud. By analyzing reports and totals, supervisors can spot inconsistencies, such as an employee consistently leaving early or taking leave without putting time in the system.
2. Educate Employees: Raising awareness about the significance of accurate time reporting can foster a culture of honesty. Inform employees about the consequences of time fraud not only for themselves but also for the organization and their colleagues. This can be done through training sessions and newsletters.
3. Encourage Open Communication: Supervisors should establish a culture in which employees feel comfortable reporting suspicious activity without fear of retribution. This open dialogue can deter fraudulent behavior, as potential offenders know that someone might report their actions.  Reporting suspicious time fraud activity to OAG is also available here.
4. Set Clear Expectations and Consequences: Clearly communicate the organization's policies on timekeeping and the consequences for violating these policies. When employees understand that time fraud can lead to serious repercussions, they will be less likely to engage in such behavior.

Time fraud is a challenge that requires vigilance and proactive measures from supervisors. By understanding the common tactics used and implementing effective strategies to mitigate these actions, supervisors can help cultivate a workplace built on trust, integrity, and accountability. Ultimately, these efforts will lead to a more productive workforce and a healthier organizational culture.

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.

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, as our internal auditors, and it provides a variety of roles and responsibilities. These duties can include:

PROVIDE INSIGHT AND ASSESS CONTROLS –– Through their expertise, knowledge, and broad perspective of FCPS, OAG can evaluate efficiency and effectiveness, and provide management and the School Board with assurance that the adequate controls are in place to respond to the risks that may threaten the organization.

EVALUATE RISKS – Risks can be everywhere (reputation, inefficient operations, fraud, lawsuits, policy violations, regulatory compliance, theft, etc.). OAG assesses the significance of the organization’s many risks and the effectiveness of risk management efforts, communicate these to management and the School Board, and develop recommendations to improve risk management.

IMPROVE OPERATIONS – With a solid understanding of the organization’s objectives, OAG can examine operations to determine whether they are efficient and effective.

PROMOTE ETHICS – Professional internal auditors abide by a Code of Ethics that upholds the principles of integrity, objectivity, confidentiality, and competency. They raise red flags when they discover improper conduct.

MONITOR COMPLIANCE – OAG assesses the organization’s compliance with applicable laws, regulations, and contracts to ensure that management is addressing these requirements adequately. They also offer insight into the impact that noncompliance would have on an organization and inform senior management and the School Board of noncompliance.

INVESTIGATE FRAUD – Because fraud can affect any level of the organization, OAG is provided access to all records as well as the authority to conduct audits and investigate possible fraudulent behavior throughout the organization.

COMMUNICATE RESULTS – After conducting thorough audits, OAG reports its findings and recommend appropriate courses of action to strengthen organizational success.

FCPS employees please join OAG to celebrate Internal Audit Awareness Month on May 15 (Wednesday) in the foyer of the Gatehouse Cafe from 11:00 am to 12:30 pm. 

Upcoming Events 

Next Audit Committee Meeting

The next Audit Committee meeting is scheduled for April 28 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: Segregation of Duties]

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