FY21 OAG Risk Assessment & Audit Plan Fairfax County Public Schools Office of Auditor General June 17, 2020 Revised: June 2020 1
Objectives (1) To accomplish OAG’s mission: Independently determine if existing Fairfax County Public Schools (FCPS) processes are adequately designed, operating in an efficient, effective manner and fully accountable to the Fairfax County citizens, and (2) To promote FCPS’ achievement of strategic goals, in particular, the area of resource stewardship. (3) According to Policy 1105, Auditor General Authority: “The Auditor General shall submit annually to the Audit Committee a work plan for the coming fiscal year which is to be presented for approval by the School Board. The plan serves as a guide and proposed changes to the plan shall be approved by the Audit Committee.” 2
Risk Assessment Procedures (1) Identification of audit topics (2) Prioritization of audit topics a) Interviewed FCPS employees (54) b) Solicited feedback from School Board and Audit Committee members (12 out of 14 received) c) Examined benchmarking data (29 equivalent internal audit departments) d) Considered financial, reputational, and operational risks; frequency of audits and prior audit issues e) Evaluated emerging relevant risks because of COVID-19 pandemic (3) Determination of FY21 audit plan, secondary and long-term priorities 3
Key Outcomes To prioritize OAG FY21 operational plan: FY20 Carried Over Engagements (1) Construction Contract Management Audit (2) Procurement and Contract Management Audit (3) Local School Activity Funds Audit, June 30, 2020 New Engagements (4) Comprehensive Program Review of FCPS’ Special Education Review (5) Fidelity of Implementation of School Board Actions Audit (6) Hiring and Onboarding Practices Audit (7) Business Continuity Plan Audit (8) Local School Activity Funds Audit, June 30, 2021 (9) Continuous Monitoring 4
FY21 OAG Operational Plan Source: Appendix II of the FY21 Risk Assessment and Audit Plan document 5
COVID-19 Pandemic Impacts on Audit Plan • Operating Status of Schools and Offices • Emerging risks that may require efforts to be re- focused • New working conditions and increased reliance on technology when conducting audits 6
(4) Comprehensive Program Review of FCPS’ Special Sp l Education Se Services This review will be provided by external subject matter expert. OAG serves Description as the project liaison with the main goals to (1) provide oversight, (2) monitor completion and delivery of key milestones and timeline. (1) To evaluate the design, structure and established processes of special education services, degree of fidelity of implementation and continuous Objectives / monitoring; (2) to evaluate the adequacy of human capital resources; (3) to Scope analyze alignment with evidence-based practices; and (4) to evaluate the effectiveness of communication strategies (1) Department of Special Services (3) Department of Information Technology Stakeholders (2) Department of Instructional Services (4) Schools and Centers Schedule Two years to complete, with annual reporting to the School Board 7
(5) Fid (5) Fideli lity of of Im Implementation of of Sc School l Boa oard Actions Audit Fairfax County School Board is charged by statutes of Virginia and regulations of the Virginia Board of Education to operate the public schools of Fairfax County by setting Description general school policy and establishing guidelines that will ensure the proper administration of FCPS programs. It is thus critical to ensure actions approved by the School Board are implemented in a timely manner by FCPS management. (1) To review and evaluate the processes used by FCPS management to track, Objectives / respond to, and implement School Board approved actions; (2) to identify Scope opportunities to improve existing process; and (3) to determine the costs and resources to track, respond to, and implement School Board approved actions. (1) School Board Office (3) School Board Members Stakeholders (2) Office of Superintendent (4) FCPS leadership team Schedule This audit is estimated to take approximately five months to complete. 8
(6) (6) Hirin iring an and Onboarding Practic ices A well-established hiring and onboarding process is critical to the success of these new employees and to FCPS accomplishing its mission. Onboarding is Description defined as the process of (a) Human Resources onboarding, and (b) initial content supports provided to FCPS new hires. (1) To evaluate hiring policies & procedures of new employees and review for consistent adherence at schools and offices; (2) to test for non-existing Objectives / employees; (3) to evaluate effectiveness & efficiency of onboarding process; and Scope (4) to determine if current process ensures maintenance of necessary information & documentation (1) Human Resources (Office of Talent Acquisition Management) Stakeholders (2) Office of Professional Learning and Family Engagement (3) Schools, Offices, and Departments Schedule This audit is estimated to take approximately five months to complete. 9
(7) (7) Busi siness ss Con ontin inuit ity Plan lan A comprehensive business continuity plan provides a roadmap for continuance and/or restoration of mission-critical functions during and after a disaster or even a Description disease epidemic. Being able to continue critical business functions while responding to a major disaster, and subsequently being able to return to normal operations efficiently and cohesively, is a critical success factor for all organizations. (1) To evaluate the existence of a business continuity plan; (2) to determine if the Objectives / plan defines mission critical operations and responsibilities; (3) to evaluate the reasonableness of the plan; and (4) to confirm that the plan has been reviewed, Scope updated, and tested periodically to ensure feasibility of implementation. (1) Chief Operating Office Stakeholders (2) Other Stakeholders to be identified Schedule This audit is estimated to take approximately five to six months to complete. 10
(8) (8) Lo Local l Sc School Activ ivity Fu Funds Audit, Jun June 30 30, , 2021 2021 In accordance with the Code of Virginia (8VAC20-240-40), all LSAF (i.e. Description including all the approximate 200 FCPS sites) shall be audited annually. (1) To verify local school financials and year-end cash reporting are not Objectives / materially misstated, and (2) to review selected revenue and expenditure Scope transactions for compliance (including procurement card transactions) (1) Financial Services Stakeholders (2) Schools, Offices & Departments (with LSAF) Ongoing (OAG performs school site visits* and desk continuous audit during the year) Schedule * Subject to change, pending operating status of schools. 11
(9) Continuous Monitoring • Utilizing technology-based audit techniques to analyze patterns and trends, and select and test transactions, • These methods will enable OAG to further understand risks and identify exceptions in a timely and efficient manner. • Technology-based resources allow users to import an infinite amount of records and execute audit specific commands to search for duplicates, detect gaps in numeric sequences, group data by categories, and filter numerous rows and columns of data in seconds. 12
(10) Other OAG Duties a) Mid-Year and Annual Audit Reports b) Recommendations Follow-Up c) Business Process Audits d) Continuous Enhancement of Audit Software e) FCPS Fraud, Waste and Abuse Inquiry f) OAG staff Professional Development g) Preparation for FY22 Risk Assessment 13
Next Steps (1) School Board Presentation of FY21 Risk Assessment and Audit Plan – July 9, 2020 (2) School Board Work Session – July 13, 2020 (3) School Board Approval – July 23, 2020 14
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