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Audit Buzz Newsletter
September 2025
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Engagement and Office Updates
Welcome to the first issue of Audit Buzz for the new school year! In this issue, we provide an update on current engagements, an article on Look from Outside and Inside - Finance Technician to Auditor, and a training opportunity.
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
Current Engagement Update
At the September 15 Audit Committee meeting, OAG presented the following agenda items:
Knowledge Hive
Look from both Sides - Finance Technician to Auditor
Recently, OAG had a Finance Technician (FT) join our team as an auditor. The auditor’s background in school finance provides the team with a unique perspective on school audits. While serving as an FT, the auditor experienced audit visits but lacked a full understanding of their structure and purpose. Since the transition to the auditor role, the auditor developed a deeper understanding of two types of auditors and three types of school audits conducted by OAG — a distinction that could help demystify the process and reduce the apprehension often associated with audits.
Types of Auditors:
1. Internal Auditors – This is who we are!
Internal auditors are employees of the organization who evaluate internal controls, financial procedures, and compliance with policies and regulations. Internal auditing, as defined by the Institute of Internal Auditors, is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. At OAG, we serve as internal auditors who are independent as we report to the FCPS School Board and Audit Committee. Our mission is to check for compliance and more importantly, to assist in improving process effectiveness, efficiency, and the safeguarding of assets.
OAG’s motto, “Friendly Auditors,” reflects our collaborative and educational approach. Our goal is to support schools and offices — not to penalize them — but to identify areas for improvement and to provide recommendations.
2. External Auditors
External auditors are from the outside and also independent of the entity being audited. They typically conduct annual financial audits that assess the accuracy of financial statements and adherence to laws and regulations. Their work provides assurance to stakeholders and typically culminates in a formal opinion on the financial records.
Types of School Audits Conducted by OAG:
There are three primary types of school audits that are conducted via site visits or through desk audits. A desk audit involves the submission of specific documents electronically for review. A site visit involves auditors visiting school to observe processes and safeguarding of assets. While desk audits emphasize transaction verification, site visits focus on process evaluation and physical asset protection.
1. Local School Activity Funds (LSAF) Audit
According to Virginia Administrative Code (8VAC20-240-40), LSAF, or non-appropriated funds, shall be audited at least once a year. OAG conducts the audit to determine whether cash balances are fairly stated, at the FCPS division wide level, and through Continuous Monitoring that transactions across the division appeared to be reasonable and did not appear to be fraudulent. All sites with LSAF are within the scope of work. OAG begins this audit in mid-July and the results are reported to the Audit Committee in November.
2. Continuous Monitoring
Continuous Monitoring is conducted on a quarterly basis through desk audits or site visits for review of appropriated and non-appropriated transactions and processes. The non-appropriated transactions are used as audit samples for the annual Local School Activity Funds Audit.
3. Business Process Audit (BPA)
BPAs are ad-hoc audits which are comprehensive site visits. These audits typically involve auditors spending a full day at school to review appropriated and non-appropriated transactions, processes, and asset safeguarding. BPAs are not randomly selected but are conducted in response to specific requests or due to a change in key positions such as principals, program managers or finance employees. Schools, departments, and offices are subject to the BPAs.
Audit Exceptions, Observations, and Findings
As a result of the audits, OAG may identify exceptions that are instances of non-compliance with FCPS regulations or policies. Common exceptions, observations and findings include:
- Purchase processes without approved purchase orders
- Insufficient documentation for cash receipts, such as improperly completed FS-131 forms
- Missing signatures or dates on bank and procurement card reconciliations from principals or finance staff
- Untimely bank and procurement card reconciliations
- Delayed vendor payments
Findings are usually reserved for significant issues where a control, law, regulation, or policy is not being followed and there’s a clear risk or impact. BPA audit findings are rated according to their severity: low, moderate, and high. For moderate and high-risk findings, principles or program managers must provide a response, corrective actions to be implemented by the corrective action due date. OAG follows up on these corrective actions to ensure the issues are resolved. Observations are more of a “heads-up”. The observation points out issues that could be improved or might cause problems later but is not critical now. No management response is necessary.
Understanding the types of audits and auditors, along with adhering to best practices, will help finance staff manage audits effectively and maintain compliance. We wish all finance assistants and technicians a successful School Year 2025-2026. Your diligence and ongoing dedication are both recognized and appreciated.
Did You Know?
OAG Outreach and Education: Continuing Professional Education (CPE) Opportunity
OAG aims at providing quarterly online training to all staff members, covering topics related to mitigating financial and process risks to FCPS. Scenarios will be provided during the training where staff members can take what they learn back to work. OAG is a certified National Association of State Boards of Accountancy (NASBA) Continuing Professional Education (CPE) provider, on behalf of FCPS. FCPS can award employees with CPE credits required to maintain professional certification status.
Course Details: “If you want to go fast, go alone. If you want to go far, go together” training series - Collaboration between Office of Auditor General and Office of the Comptroller. This training is designed for all FCPS employees and will cover the work of the Office of Comptroller and OAG. The Office of Comptroller provides important second line of defense support over the financial checks and balances at FCPS. While maintaining independence, OAG works closely with all departments and offices, including Office of the Comptroller, to ensure FCPS’ ongoing processes are effective, efficient, and fully accountable to our citizens. In this training, our employees will learn more about how the two offices are working together, to enhance monitoring and accountability at FCPS.
Format and Date/Time: Synchronous online training via Zoom, on October 24 (Friday), from 9am to 12pm. Three CPE credits will be awarded for the entire training.
FCPS employees may sign-up here OAG Training - October 24
Fraud, Waste & Abuse Hotline:
(571) 423-1333 (anonymous voicemail)
InternalAudit@fcps.edu (email is not anonymous)
Online Submission Form
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