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see 2 new.
>> This 5/11/2026 regular meeting of the Fairfax County School Board audit committee will now come to order Mr. Davis submitted a request to attend this afternoon is meeting remotely due to medical conflict unit,
Fairfax, Virginia. I've performed an initial review, Mr. Dance request and having kind of to in compliance with the school boards, remote participation resolution. I have approved the request.
Mister Danon, please check your audio and visual. >> Afternoon, 8 and now as board members who are physically present to vote on the following, all those in favor of confirming the chairs
are proof of Mister Dance request. Just minutes. Okay. Okay. So Mr. Moon Miss my see
it St. John-Cunning and Mr. McElveen no, this none. No abstain. And then that camera,
okay. Moving right along. We'll now approve the meeting minutes from the march to 2026. On a committee meeting.
You have a motion. But most moved by Nanette that the audit committee approved the minutes from the March second 2026 meeting with me for the clerk to correct any form, adding technical grammatical
errors to have a second Mr. Moon, all those in favor. Its unanimous of those in the room. Mister Danon had vote. I kept saying just And then
they're okay. Dan is abstaining. Anyone next. No opposed. Okay. On to item 1.2 or 3 office of Auditor General
mid-year report. I call General Co and Daniel more for item. 1.0 3. >> Office of Auditor General Mid Year report. >> Good afternoon, everyone.
So thank you for this opportunity to come to share this one item today. So this a briefing that we would like to do now and may at the request.
I thing from the Annika Midi 2 times ago that we when we presented the fiscal year. 25 office of Auditor New report
and make a comment that because that report will be share with the full school board in June July. So there will be a time gap between what my office have done and
furs is at the time when new report was presented at the board. So the purpose of this meat year briefing is to preach to 2. So when we go to speed with the board in June,
July to a proof of the fiscal year, 27 audit topics and risk assessment. They can also know what we have done the previous month. So this is what it is. And I think it's also a good
opportunity because we have a new audit committee members. So welcome, Tom, to the audit committee and then we can also talks about the office has
accomplished in the past few months. So with that, we can go to the second slide. So the first bullet is about the why
we're here today. And then the second bullet highlight what we have done scenes. We each shoe last year annual report. My office has been BC and
today we kind of have 3 members here only. So he's kind of like a little different than normal because we have only this public item.
But with my whole team member, we audit office of 7 auditors, including myself. And we have accomplished 2 performance audits and 7 business process
audits. We keep falling out with management until we get a satisfactory response on audit recommendations. And we also maintain different ways and abuse hotline. Currently, that
they'd are here at the 71 received was actually asked off. I want to say earlier this month and as today, we got actually closer to 80
claims total. So we have got a lot of light, authentic situations that give us insight about want to looked at. So we really appreciate again from management support and also to school board members and community members
to help us to spread the word about different ways and abuse reporting. And then we would also have completed the fiscal year 27, meaning the next
fiscal year post risk assessment, an auto plant well. And the following. Slideshow at a big picture about all the approved and Kate engagements by the audit
committee and then by school board about where we are. So I'm very proud to report that we are on schedule for all of them. And then about this 9
items that now will walk us to the specific details about each one of them. But I would like to say that we have completed its 3 off. The audit
reported here and many of the does have actually started planning and execution. And he's in the reporting face well. So with that, I would like to transition into them
now. Thank Stir. >> For setup on is our business process audits which we actually called BPA is for sure. So during these audits, we evaluate the This a process
is make sure the internal controls are adequate and the tournament if transactions are reasonable, we typically select schools and we each year we try to do one department looking at not
appropriate and appropriated funding. For this particular report. As of right now, we have conducted be pa's at 7
schools which resulted in one hire is what for moderate and 11 lowers findings. And as you can see, these are the result, the kind of breaking down by finding we plan to report the
remaining be pa's in our Audit committee meeting. The next is the health care claims management audit. The objective was to evaluate the
effectiveness and efficiency of the monitoring framework by the Office of Benefits Services this audit was exempt from disclosure under the Virginia code. But we did
discuss this with the audit committee in a closed session. Arthur, audit is our hourly employee structure in stipends audit. This current this audit is currently in our field work
stage. The objective is evaluating whether they're appropriate controls around the structure and making sure they all sightings are
properly authorizing utilized across fcps. We plan to present this at the June audit committee meeting. Our 4th. is
the local school activity funds audit for year ending June 30th 2026. The objectives include determining whether cash balances are fairly stated. And when we talk about
cast thousands, we mean cash and cash equivalents. Also, we're assessing compliance regulations, indeterminate of internal controls are adequate. We plan to report
this out in our November 2026 audit committee meeting. Our 5th audit is school and office safety. The objectives include
evaluating fcps safety security requirements evaluating where the fcps sites have adequate building security and measures and access controls. And we also
selected a sample contracts to review into compliance. also was exempt from disclosure under the Virginia cold. But we did discuss with the audit
committee in a closed session. Our 6 audit is specific contract. Vendor management for this particular audit. We selected instructional services Department and the
Department of Special Services. So kind of look at the event, a performance for their contracts and that their office. We are scared. This currently a process that were
scheduled to present this at our September audit committee. The 7th item is continue with monetary. And this is done for what we do this on quarterly
basis. Looking at schools, not appropriate and also appropriated funding we kind of analyze pant patterns and transactions. So it's a lake
transactions to test also for to cut a continuous monitoring. We do announce cash counts, a gate receipts athletic events and performing
performing arts events. We also have transactions related to the career and technical education. And I believe we are scheduled to pro present
on quarter quarter to that was taken cooking with minor tree in June. Okay. Item number 8 is related to our system of
quality management and external peer review. So this a system of calling the management is kind of ongoing work that we do all throughout the year. And this year was U.S. particularly special
because the government didn't release that. The government auditing standards are yellow book framework with updated. So we had to update our system of internal of quality management as well. line with
gag us. Also back in January of 2026 pounds. When announced that we had external peer reviewed it. That's when we have the auditors coming audit. Our word to make sure
that we have an appropriate system of quality management. And we received a pass rating, which is the highest reading that you could can receive. So we're happy about that. And
that's seconds. When we see one that passed it. Number 9, another number 9, which is our audit recommendation. Follow-up. This is done on a
quarterly basis and we follow up on all open audit recommendations. I will say as of January 31st, I believe with our last reporting period that we reported to audit committee, 60 recommendations
from the current and prior years were outstanding. And this is related to food and nutritional services audit. The chairman process audit critical process review hiring
on it and construction and renovation contracting process audit. So we will continue to follow up on these open items on a quarterly basis and report out to the audit committee. And I believe our
next report out will be in June as well. And I will hand it over to Front with a beef. >> Thank you. So we just spent a lot of time talk about the
bread and butter for us, which is internal audit. And at the same time, we also spent a lot of resources on the fraud, waste and abuse concern reporting. So on. Here is a
little bit of ABC schedule, but it has a table that shows kind of the types off concerns that we received, including such as conflict of interest
documentation, procurement residency, Yusuf asset and fender execution Central. He's also show kind of like the trend from fiscal year. 22,
for about 5 years now. we can see that that that we have the reportable cases for somebody in fy. 26 fiscal year 26, we have 9 and we always light on
an increasing s****. 40 shares of reportable situation and we define what reportable means in the bottom of the sly. That means either it has
credibility of fraud, waste and abuse or situation that may involve, you know, senior members dysart's the situations are if we highlight anything found from the
concerns that can impact our controls and then to profile, you know, significant improvements. We are reporting on this situations to the
audit committee and many times up on the audit committee recommendations. They are also referred to the for school Board for discussion. So this is what we have right now.
Like I mentioned early on, we have over 70 concerns for this fiscal year. We definitely have been keeping my team BC, but I really appreciate all of
you to promote this way to for community for employees to report because see something, say something is Alice Logan, many of you know that that
audits could not really identify fraud is really for the state holders, Kawhi inside who see and report is the most effective way. So we really appreciate the
collaboration on that. So with that, then I also the last slide. A top. Yeah.
>> Can you suspend a little bit on the increase in the use of assets calls? Was there any one particular thing or was it just a lot of different things going on there? >> Sure. Thank you. Thank you. New. Not so for the use of
access to themes of what Kamin could use of time. Like is our employees kind of working their full contracted hours sometimes may not be. That may
be concern is not. So we have to review and also to looked at them. I time like our internal time reporting system and see how that being recorded. And then the other
situation is the use resources such as like the use photocopy machines or use off, you know, space. you know, Puting accent route that will fall under use
of assets. >> Right. But that was that wawas up quite a bit this this year. So is there any was there anything in particular that drove that?
>> My understanding is like likely more because off the active promotion about the use of the hotline. And we really focusing on the use of time
like the time aspect. So we got a lot more. Tips to coming to us that we can kind of looked at that for. So to me
is more about the promotion the hotline that people can use instead of something. You know, if you knew my thinking why something wrong is happening. I do not believe so
is more about the activity. No promotion. >> Okay. >> Maybe I can finish the last
few sly and then we can open for questions. The next slice share. What kind of the audit committee has reviewed in the last meeting about our
proposed work plan for fiscal year, 27. So we propose some of the new audits and then some of the carry over audits. And then some of new audits that we will continue to do.
You may be wondering why we have specific contracts in past. Both new audits and carry audits. It is because we know that that this is a high
risk area, so to speak, like about how the individual state holders, the needy Joe offices, managing their contracts. So we have that like Now mention for fiscal
year 26, we're looking at how Department of Special Services and then instructional services Department, how they manage contracts. And in
fiscal year 27 with post to include department off information technology, how damaging could that contracts so that we would like to look at that in in the upcoming fiscal year. And then this
topics will be posted East. School Board for review and in July. >> And this is the last page is the duties. Like I
mentioned early on, even though we have done a lot of audit, work of fraud, waste and abuse. But if we do not share the infomation than our stakeholders, don't know about
it. which is something very important AG. And so for this fiscal year, we have done 17 presentations and almost 2000 personnel have received the
training in the different presentation. And I especially would like to give a shout out to our financial services team because they really give us the opportunity to train to
finance that mission. And also the finance professional for central offices. And I also appreciate Dr Reid to allow allow me to be able to speak with the school-based administrators, cheering the
leadership kickoff because those are really precious moments that we can, you know, share what we do and encourage people to work closer AG to
gather. We also meant paying and auditor group with the neighboring jurisdiction in the DMV area that we meet quarterly so that we can exchange in size and share
information about what to audit. And one of the hot topics that we can look into. So with that, I also want to promote the audit bus here. We now have over 3,000
subscribers with your help. So if you don't mind to, if you can put it in your news letters to encourage more to sign up that we would be very happy about that. And in
today's on May, 13, maybe I can also treat question here. What is special about may? May's actually our internal
Audit Awareness Month. AG will be having a a booth or like a celebration at Gate House right outside of the cafeteria
area on Wednesday. And it is from 11, 30 to one. And I would encourage you all to stop by to find out and learn more AG. So with that nasty
and I would like to have the time back to Ryan. >> Well, thank you so much for that tour tour de force through your work this Can If
board members have any questions or comments, please raise your plaques. I see Miss
St. John-Cunning. So thank you for that. >> On slide 5. When we go into. What's happening there
and we look at the the highest. Areas of finding our fund account uses purchasing process and sufficient
documentation. My question with that again and you know, you and I have talked about finance system, the work of finance assistance and stuff. So I have a couple questions. Is this like? Does this
indicate that we need to have like a system-wide retraining for our finance to or are the policies? Complex to follow or
when I look at the Fountain Fund account usage, I know like. 2. We have too many different accounts because they know that there are gray
areas and where it gets putt. Is there a way that you think that we can solve some of this? Not just, you know, to make it. Less likely for these
errors to occur, but also to make it easier for financed emissions. >> And thank you, Marcia, for the question a great one. And
I also want to for, you know, to the comptroller Cema. Maybe you have some thought about that, too, from my perspective, I training definitely east one because more that the school bay staff
members can kind of hear from us about what the STA Way that to do. That will be great. at the same time, I for example, I know that that there must be
some reason dry from central office. Why we required. The details accounts because if you don't have that, you made from central, you may not be able to do certain and not
assess that may be required off, but I think it would be great to retake a look at what is necessary, which is a must versus good to have cry. If I
hear your questions correctly, I don't know if you have any thoughts to add. >> So for fund account usage. So we have the chart of
accounts. So we have to keep certain accounts for differentiating the revenue differentiating the expenditures. We can look at it to make sure that there's no. X Xs and the number of
accounts that may be confusing people. So that's something we can definitely look into because having too many can definitely confuse the issue. But then. We try to keep those
only for tracking purposes. So. We have one systems of one. So, for example, if the high school wants to have a code, it's for the whole
system. And then that may complicate things because not everyone will use that code. But we'll look into. We are looking at we use Great Plains, which is the system
that we have, which actually will no longer be able to be used in 2 years. So with that enhancement, we can look at maybe. Having a system that
can give us a more robust. Chart of accounts that may differ a little bit for elementary versus high school and can block certain codes to make things a lot easier. So
we'll definitely look at that one. And then for sufficient documentation, I think honestly, it's a training issue. We give trainings. We. We even took the school
finance handbook and put it into an electronic format. So they could Google search, you know, do a search and get right to what they're looking at to find things. But I I
just I'm thinking they just have a lot to do. And then that's where the documentation may be failing. Sometimes. do
you guys ever. And this is just kind of my thinking. >> Ms. St. John-Cunning: Do you guys ever get recommendations or suggestions from people that are actually using this? Because I think sometimes bottom up is
important. And I think sometimes even just having clearly defined, you know, this is comes from the title one office in this house to go here or this you know, school
funds versus the U.S. because I've in offices where where we have that conversation has occurred. The finance technicians ice asking the principal on their having to
do all the maybe even just having even just very clearly defined. This is where it goes, because I know I think that there might be some places that. Could go here. Go
there. That made be good for some flexibility. But then it also may be causing issues. Also seeing what's caused issues at the end of the year like, oh, we thought we had this much money, but we have
put in the wrong account and so. just looking at a way and look, math is not my thing. So that's why I get really nervous about this. Like, is
it clearly defined? Can we put it in the right place? Can we can we help? Our technicians and our principles and everybody know. Just have
clearer direction or, you know something because I I've seen it costs so much heart. At the ground. >> Some so what we can do I
can go back and look at the training to make sure that. If there's a concrete answer that we just give that and then that way. Maybe eliminating some confusion. So we'll go back. thank you. I just this
is just like one of those things that. Really seen Mr.
>> Mr. Moon: A different question. Gender quota might not be a surprise for me to
ask something. My guests. On page number 9 for fraud, waste and abuse. >> He's then we for your
office, too. On to fly. Tons of a gun and figures. Extent.
Let's say. And a geisha INS. Fraud, waste and abuse in how many cases the and it onto whether we are talking about.
10 million dollars. 1 billion dollars. The how much time your office actually spending.
Have him all staff members. To spend time for investigations. I just want see. This much of
time to get this much of what is ours. >> Sure. Thank you, Mr. Mode. I think this is so great perspective about how looked
at it differently, right? I can certainly explore that to see if we can include a dollar figures. I do want to say this right for those situations
that are reportable. We tried to quantify did every time. And those information is provided to the audit committee likely in the closed meetings because when many
time and it is reportable, this always and exceptions component Attash to it. So I just need to be cognizant about what could be, for example, share here in a
public meeting. What is total? Because the total also coming from some information that may not be available to be discussed publicly. I mean,
that's understood that some distance, you know, from my perspective only committee member school with a member, what do spending?
>> Mr. Moon: Way too much of steps time financial resources. Investigate the matter. And may not be resulting Savings are hurting
school systems, too. >> Not all of these can be quantified that I get. Yes, one of whatever the case can be cuenta file I just wanted to see. We can definitely
explore that. And the the only other consideration I would like to ask the audit committee to think about these maybe to reputational risk,
too, right? Because dollar definitely is one thing. But if we have something like, let's say, although wise, he's very small but happens in a school and it may create a big
impact to the community. And that may not be able to measure just by the number. Right? And I totally understand. I mean, isn't when you're not, you're not referring to that, but he's one consideration with dollar
amount that we can see how much resources that we should spend on them to get, you know, a more. Balance results.
>> Mr. Moon: I understand, you know, sometimes, you know, a lot of times reputation, maybe morning part and then figures and I also want to know. Yes,
it too. sure figures. >> Thank you. Mr. Meant I have one question. So when we have all fraud waste abuse claims, how do you parse those out among your staff? of folks look into this.
>> Great question chair. So many times. I I am kind of like the one who kind of reviewed to assess what to risk. And to think about how
much work we likely need to do as a data collection. And then it takes kind of like a more extensive review. Then I have
to assign to a staff person also seeing the the the extent of the exposure to write if we get some situation that I believe that it may have a huge reputational impact
potentially to at CPS. We may even the lay some of the audit work and then to kind of jump right into it. And we also circle back with the claimants
because we want to make sure that we treat every concern very seriously. So we will respond back to the claimant and to let them know, is this something cheek had looked
into? We have to refer to the appropriate office. So to answer your question, right, I would first take a look at the information provided and then to kind of asked in a how much
time you may take and then to see kind of the exposure Poe 10 show the impact to the fcps. Then assign staff accordingly. But I am sort of
the go-to person the auditor general and also has the kind of forensic auditor on many of them. Great. Thank you so
much. >> Okay. Seeing nothing I will move to move to click convene. A closed meeting. So that committee will now make a motion on 5/11/2026 to go into closed meeting to one discuss personnel matters pursuant to
section 2.2, 37 11, a one the code of Virginia and to consult with legal counsel regarding specific matters requiring the provision of legal advice by such council
Section 2. 0.2, 37 11, a 7, 8 of the code of Virginia, specifically personal matters to have a motion. We've by Misty Jen. St. John-Cunning.
Second. Miss Anderson. All those in favor. And that is unanimous for those here, including Mr. Dan and online.
So this public meeting is now recessed at 4.36. And the board will now meet in closed session. And that is a record. >> 31 minute. 31 minutes. Can
you can you quantify the savings?