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Audit Buzz Newsletter
January 2021
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In this issue of Audit Buzz, we summarize the status of current engagements, highlight OAG's FY 2020 Annual Report, and also provide insight into what a Risk Assessment is and how it is used to identify and prioritize future audit engagements.
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
- OAG is currently performing both the Fidelity of Implementation of School Board Actions and the Hiring and Onboarding Practices audits. These audits are being performed in accordance with the FY 2021 OAG Audit Plan. In addition, OAG continues to serve as the project liaison for a comprehensive program review of FCPS’ special education, which American Institutes for Research (AIR) was contracted to perform.
- OAG is in the early stages of the annual risk assessment process, with the goal of identifying and prioritizing audit topics for the FY 2022 Audit Plan. Read more about the Risk Assessment process in the Knowledge Hive below, and be on the lookout for more information in future issues of Audit Buzz.
FY 2020 Annual Report
OAG presented the FY 2020 Annual Report at the School Board work session on January 5, 2021. The annual report is a initiative started in FY 2019 to raise awareness of OAG’s mission and accomplishments, highlight the internal audit process within Fairfax County Public Schools (FCPS), and summarize the results of audits and projects. The report also highlights other OAG initiatives and achievements from the fiscal year.
OAG would like to thank members of the Fairfax County School Board and Audit Committee for their continued support, as well as FCPS Superintendent and Leadership Team for fostering a collaborative work environment that promotes Fairfax County Public Schools achievement of its strategic goals, particularly in the area of resource stewardship.
The FY 2020 Annual Plan is available here.
Knowledge Hive
While OAG continues working on the FY 2021 Audit Plan, in order to plan for the future, we are concurrently performing risk assessment procedures to aid in developing the FY 2022 Audit Plan. In this entry into the Knowledge Hive, we provide insight into the annual risk assessment process by describing some of the tasks performed and areas considered.
Risk Assessment
Risk assessment is a term used to describe the processes to identify and systematically analyze and evaluate risk factors that have the potential to cause harm to an organization. The result is a combination of qualitative and quantitative data that assists in the prioritization of audit topics. OAG's risk assessment process, which is performed annually, consists of identifying and prioritizing audit topics by assessing risks related to areas such as financial impact, internal controls and compliance requirements, and operations. While the risk assessment is independently performed by OAG, we solicit and welcome feedback from School Board and Audit Committee members, as well as FCPS leadership and management, in order to develop a value-added audit plan for future work performed. The risk assessment process is described in further detail below.
Audit Universe
The first step in a risk assessment is defining the audit universe, which consists of the different auditable processes, functions, and/or service lines within an organization. OAG reviews the most current available data to establish a comprehensive, accurate overview of the audit universe. The audit universe is developed in a top-down approach, starting at the leadership level and further evaluating departments down to the office and/or section level.
Identification of Audit Topics
In order to take into account new and emerging risks, the OAG audit team performs a comprehensive overview of the audit universe, including areas that may be legislatively mandated to be audited and the structure and operating environment of the organization. With this information, the audit universe is shortlisted to identify audit topics through procedures such as:
- Incorporating secondary and long-term priorities from prior year risk assessment.
- Acquiring information from sources such as FCPS training events, regular School Board meetings, School Board committee meetings/work sessions, media reports, and discussions with FCPS internal stakeholders.
- Benchmarking other school districts’ internal audit plans, specifically those who are similar in size to FCPS, both locally and nationally.
- Evaluating the results of both prior OAG audits and audits performed by external parties.
Prioritization of Audit Topics
Once the audit universe has been shortlisted, the audit topics are further prioritized through gathering and analyzing information, benchmarking, and stakeholder discussions. These discussions include School Board members, FCPS Leadership Team, and other FCPS management to obtain an understanding of their priorities and obtain information about key risks that may affect the routine activities at the departmental and office level.
The information obtained from those discussions are combined with OAG's independent benchmarking and analysis to assess each audit topic on risk factors such as:
- Financial impact
- Potential operational risks
- Internal controls and compliance requirements
- Results of prior audits
- Relevant risks faced by other public-school systems (benchmarking)
- Opportunities for improvement
In addition to the risk factors listed above, the audit team considers timing implications of each topic. If an audit topic, function, and/or service line within the organization is in the process of implementing significant changes in operations, an audit on the related processes may be delayed.
Based on OAG's assessment of risk factors and information obtained from stakeholder discussions, each audit topic is categorized into different audit priority categories, including primary, secondary, and long-term priorities.
Risk Assessment Results and Audit Plan
OAG presents the results of the risk assessment to the Audit Committee and School Board through the proposed OAG Operational Plan. The School Board approves OAG's independent audit plan annually.
Did you Know?
Next Audit Committee Meeting
The next Audit Committee meeting is scheduled for 5:30 PM on February 24, 2021.
The agenda will be available on BoardDocs prior to the meeting.
Fraud, Waste, and Abuse Hotline:
(571) 423-1333 (anonymous voicemail)
InternalAudit@fcps.edu (email is not anonymous)
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