>> Okay, great since where we have quorum going get started. So this 4/28/2025 regular meeting of the Fairfax County School Board audit committee will now come to order. So
first order of business is to approve minutes of the March 17, 2025 meeting of the Audit Committee. I move for Adoption chairman do it. It's their second. Oh, yeah, it's a
public meeting. Sweeney that has to has to be open. Thank you. Okay. So seeing a second from parent motion from Mr. Moon and a second from Saint
John, Cutting all those in favor. It's your hand. Okay. Unanimous for this board. Members of the table. Okay.
Now we'll move on to a 1.0 3, which is the fy 25 business process audits over to miss more. >> Good afternoon, everyone. I will be presenting the results
are 5 F y. 25 business process. Audits. Just as an overview, these business doesn't perform either due to a change in management, which could be a change in
principle, our finance take or program manager. We also look at this based on results of our continuous minded continuous monitoring audit
procedures. And we also get requests from from our regional assistant superintendents and also principles to perform some of these audits. And just to let you know, our business disease
are at hot audits and these are more detail audit on specific schools are sites that we conduct. And and so we
go we this is a all day visit that we go to the schools of the site and we conduct a review of the non appropriate inappropriate. It transactions at the at those particular sites. And the objective of
the of the business process audit is to evaluate the effectiveness. The process is in compliance with applicable regulations and policies as well as determine internal
controls are adequate and functioning as intended and determined if transactions are reasonable and not appear fraudulent. So this particular reporting, period, we
completed 5 in this Does that included for school audits in one office audit. From the 5 is if there were a total of 13 low risk findings and for
moderate risk findings for a total of 17. So just to break it down, we have for low-risk findings for Daniel Run, Daniels rent and look entry.
One Lowe responding at West Hills, West Springfield, Elementary. One moderate and 3 low-risk findings for Great Falls Elementary. And one
moderate lower spine is from Mount Vernon High School. We also head to moderate and won the risk findings for the for the warehouse operations,
which was our our department office that we also selected to conduct. So I wanted to kind of go into what those moderate risk finding that we
had. So for Great Falls Elementary, the we have one moderate planning which was due to from the Financial Management report, which we from our reports, from our
reconciliations for September October November would not reconcile into January 15, 2025. and approved January 20st 2025. for each of those
months. The completion date set financial services was actually set for September October November, actually, October 31st. November. 26 and
December 31st. So they were not completed timely. Additionally for the not appropriated procurement card statement for the summer 2024,
it was not reconciled and approve and timely basis. For Mount Vernon High School. There was one minor fine and also due to from our
reconciliation, not being reconcile and approved time in a timely manner in the online application. August October
and November of 2024. We also had that the November hard copy hard copy of the Fmr was not reconcile and approved until January 9 for from our
position report from our expenditure report at the school. It wasn't were approved until January 13th and the due dates that my financial services was
December 31st of 2025. There was some not appropriate. It could become a card statements for one of the 3 months that we sample that were not signed
by the finance technician position should have So for the warehouse. We had 100 finding which was due to some
sample, became a card transactions that related to outside the proper pick purchasing process totaling $16,000. And these purchases in particular were related to
the freight management, which is a centralized process that allows fcps to manage all the free calls that are occurring at all. Schools via UPS and
via FedEX. And so this was a new process that was put under that warehouse operations when the when they moved under the chief operating office. And so
the these particular free cars are occurring at the schools and they related to those purchases directly with the vendor. But there is a central
account where the schools can't part is the shipping costs on a central basis and have those items shipped directly to the schools and what was happening. There was
no one to reconcile that these things that the shipments were being that that were received by the schools by the warehouse says that this was something that was happening
more so at the school level. Also, we know that that the school purchased these purchasing cards kept on file for one up from one of the vendors I believe was UPS. The
in the car was kept on file. So the payment was made prior to any reconciliation being done by the warehouse office.
The second moderate finding related to warehouse office from our for November 2024. was not approved. online application on the physical
physical copy with in a timely manner. And so made a recommendation that that to use the there's an online of.
Cover sheet to use to make sure that that is done in a timely manner and completed. So as we relate to these moderate findings, we have
asked management to provide a response and we will follow up with them on a quarterly basis, which I really will start. And next follow-up it with 2, which will be around
our June meeting. So I will hand it back. So Ryan, see if there are any questions as it relates to these business process. Audits. Great thing, Mr. over to you.
>> also operations. I think that you want to have to go to slower cause. I was getting confused. So correct me if I understood from. Just scores
ruled placement placed orders. And shipments with a come to school. Reach. now says payments ship once without
checking Sherman showing. Why is that? >> So, Greg, understanding is the school, the school places, the ship, the order. The shipment is put into
essentially based account which though P carpet that account is managed by the warehouse operations. So not at all. Does the warehouse operation received a shipment the schools receive those
shipments and then the warehouse has to reconcile the peak heart that makes the that pays the payment on account for those particular shipments that each individual school
makes. >> So will option is to make sure to show arrived for make the payments and what you're seeing these. did not. And phoned in the seat of a
shipments from making payments. >> So I believe the schools are recurrent are confirming receipt, but there's disconnect because the warehouse has all of car and
that the schools. So while the schools are compartment receipt at the school, they are not. There's no communication between the warehouse in the school that the shipments are being made
or not before the cards may reconcile the warehouse. There's so many schools making purchases the warehouse be impossible for them to reach out to school. To see that
shipment was response. But these days the school supposed inform. >> We'll says today to see the shipments so that we don't says make the payments will also have to reach out to
schoolers to that. If I receive the shipments. Great question. Accountability for that, right. So from our understanding this someone that the credit card, the Pokemon Card
>> is with warehouse operations. And I saw that we have comptroller and also, you know, the chief operating officer here well. So our
understanding that the department who meant paying the card? Should be responsible. You make sure everything is correct before
you paid, right? So that's what we do says in this case, right? Right. That will my understanding. But I don't know management has any additional thoughts to add. Or
maybe talk to Reed on Marty. >> Sure, all I know we discussed I know Mr. Smith did as well. So Mister Smith doing to respond to that. >> yes. And so what Misko is
saying is correct. So that the warehouse should be reconciling because they own the peak hard. And I do know that procurement is working with the COO and rectifying
this. But again, with the individual schools making the deliveries using the same P card account. Those individual schools were. Confirming receipt but they weren't
closing the loop with the warehouse on that. >> So again, the counted you
just a cold case that has able to screws in. >> Widodo says or ghost who asked to verify receipt shipments. >> So with our P cards, the
owner of the P card should be the one verify. So in this case we do speak with the cards. Yes, though, the warehouse belong to the peak hard. So the warehouse should have been there a fine. And
yet with the number of shipments and without the ability to verify who is using the link for the P card, there was an inability to track that
with those individual school. Yes, this particular on 10 per cited piqued my interest to because we were. And at the sighting school was taking an
action upon purchase. Textbooks resources and we do have a lot of shipments. I don't know go. When you come
to wheelhouse is what they would like individual schools to do that to me. And then. >> Who's gonna make? I mean, it's a 15 to a 17 million
dollars worth of textbooks. that's right. But on this one. >> Okay. Any other questions on Saint Anthony? Okay. So I
with Mr. Moon in terms of confusion. >> The warehouse. The school purchased says. Looks like books. And that the purchase
of the cost of books. Cubs end of the school account. But the freight costs comes out of. Is it soon? For one invoice
pressed to payments. One is for the books. I could see that coming out of school count within the freight. Yes. And you know, it just I mean,
I just. Understanding this confusing. So I can understand, like all the schools are ordering. And as far as they're concerned, they received the books. They paid
for the books. Freight is separate, corrects for separate. So when did that, the warehouse operations, all we could see what the freight cars we could even see. >> The amount of the books that was purchase because that
like you said, the school level. All we could see was the sent. The central managed account. Those transactions for the particular freight costs related to the the
shipment of the books. >> I mean, so I'm going to ask a very basic question. And I don't know if anyone can answer like is spread this or
is that common practice? And which practice or we talk about the >> one group ordering the books and the other group owning the. >> I think they're probably I
think we could improve that practice with some checks and balances and staff are working on that right now. It's like. Having 2 people in a checking account that never gets
reconciled, right? That doesn't usually and well. So we want to make sure that we that all parties are aware the
receipt and the the expenditures and the receipt both sides. And think there's some simple fixes that staff are going to be working on to address And then.
>> Can you explain to me why those costs are bifurcated? Like why? The warehouse would pay shipping and then the
school would pay for looks like. >> The fact that those shipping is handy with the
bat, how Sullivan? But the over on building his handling of the, you know, purchase overall 11 to the headquarters will be handling the overall orders. But then the shipping
probably timing at the warehouse know because the and the once what going to be finally delivering it and they will probably decide that that's one industry practice that can be there. But I
cannot answer specifically on question. My understanding is the problem is that. The orders delivered to the school. Because they paid for it, but that the free so was
not delivered to the warehouse. It wasn't like the warehouse delivered I think Seamount has it. >> Yes. So I wanted that.
That's a wonderful question. And so this centralization of the ship being the UPS and the FedEX charges is basically we're getting better costs
centralizing it rather than the decentralized model. And that's why it was done that way. But we are actually going to do a review to see what's the best way to reconcile this because it's either you D
centralize it make the schools responsible for the entire charge, which is the shipping and the books that come to them or you have to get some type of better communication
going where the schools once they receive the product notify Central warehouse so that they can perform the reconciliation centrally. So one or the other has to occur. And we're going to be looking
at what's probably the best way to do this. Okay. And I would understand to school like if they don't have to because their budgets are limited.
>> So is that. Great cost doesn't come out of their budget. I could see the advantage that that I can see what's causing the problem. Yeah. And right now it is centrally budgeted. so with
warehouse. So that's why they get set for 8 and the shipping. So the schools don't have that charge. Okay. Any
further questions on this. Thank you. Miss Moore. >> So next will be moving on to one points here for Fy. 25
quarter one into and sharing that to you. >> Thank you, OK? So now I will be providing with the results of our fy. 25 continues monitoring
procedures. This is for quarter one in quarter 2. So as it relates to our continuous moniker, Procedures, These or a technology-based audits. We
analyze patterns and trends and select transactions selecting test transactions. The math will enable the office to further understand risk and identify exceptions
in a timely manner. We also use continuous continuous monitoring as our sample for a local school activities, funds audit. So these these results will be included in our fy. 25
local school activities close on it. That will be reported later this year of what I believe October 2025. And so what we do, it's each quarter.
We select a sample of transactions. And so for quarter one we actually did this year is that we did an analysis. Korda won transactions just to see where
those high-risk are. Areas are for transactions. And so we can determine for quarter 2, what sites to select that we want to visit visit so important to we visited a
sample of selected strand of sample of selected sites where we visited. asked supporting documentation for not
appropriate and appropriated funds, transactions. And we also looked the became a car reconciliations if I'm not mistaken. Then we also selected a sample of transactions where we asked
the schools just to provide us the supporting documentation for those transactions, which we call wants desk audit. And
so any expects is noted, as I mentioned, will be included for not appropriated 5 this evening will be included in the local school activities fund audit. We also look at Look at continues monitoring to determine if there any
business process audits that need to be conducted at that time. And so what we know that for quarter one, we I we we
conducted that analysis and we visit at a can at site. This is the 18 schools subsequent we we select subsequently. We selected 158 transactions for
60 sites. Important too. Out of 78 fights. 36, I had no exceptions noted. 26 28 fight head exceptions noted in 3 a few areas and 14 site did not
have any transactions appear in the sample of transactions. And just to remember, just to site may have more than one exception in the in the area
more than more than one area. Excuse me. So just to get to the detail of what those observation areas are, we have 10 sites with 9 think
reconciliation exceptions. So these exceptions are related to and this is a normal area that we always have. These exceptions usually around. Peak are statements not being signed and dated by the
principal, the finance to also what we call the administrative assistants or the peak are statements not being reconciled, timely. We
also had 6 exceptions within under the bank reconciliations area. These exceptions whether either the bank reconciliations will not fine
and aided by the finance in principle, not completed, timely or just the book Balance does not match the ending cash balance on that. The summary outlets. We have 4
purchasing process exceptions, which is also a common area. And these exceptions are usually due to procurement contracts that became a card transactions that receipt not
receiving end pre approval of Kurt prior to purchase. Or purchases exceeding their approval purchase. out by more than 4%, which is in the
regulation that is noted. We also noted that approaches of computer product computer monitors that will purchase either from Best Buy instead
of purchasing through focus, which I think is prohibited. We had 4, timely deposit exceptions, identify this exception was identified. One
funds were given to the finance office and the funds were not deposited timely. During this continuous monitoring view. We did some gay activity procedures. And
we know that that the site and we did site visits at these particular areas that last fiscal year, the exceptions include gate receipts fails to adequately or accurately being
recorded and takes. Or document with by physical tickets and required forms. And page is being granted free entry without verification.
And that gate sales receipts not being properly reconcile. We have 3 and exceptions for incorrect account chart. Incorrect account, arts we
know it. And this is one exception, though, does identify one P card transactions were made using the incorrect fund account. And I think this was more so
happening when the school is supposed to use ACA counts with I believe is could educate. continue. contingency account for like things like for refreshments of staff
development and they were using the wrong accounts. We also have 3 exception notice for safeguarding assets. identified check spot and that
will secure and a lot drawer or a safe. Because we're not in on hand at the time of the audit. Or they were not properly checked out when we
were there for the audit. We also had 2 exception identify for competitive bidding. This is identify one purchases.
$62,000 without competition and they were they were used for fcps contracted vendors. We also noted 2 exceptions
were identified for sufficient documentation. Is it that this is an exception when our key backup documentation like purchase order and a receipt was not maintain on file or
were missing or that the school finance the pilots, lips were not accurately completed. And finally, we identify one timely payment
exception. This is one and not paid timely. However, we know that there was no late fee attached to that. But voices were not paid. As as noted on
on those invoices, particular vendors. As it relates to these, as I mentioned, are not appropriated transactions will be included as a part of our local school activity funds.
So there's no additional action that were required at this time. We just wanted to provide update on the 2 quarters that we have completed. And I will turn it back over time. Great. Thank
you. Any questions or comments on? So. Competitive, a
beating. Easton says. The bottom page 2. What is the
question? I'm just directing your attention to all Compare the a >> 2 reasons says so they in violation of regulations,
correct? I mean, are these or violations of the regulations? >> They work could be a violation of regulations or internal control practices are
not being followed. >> So when you are selecting. Sites. How do come determine
which one which site to audit? >> Yeah, thank you for the question. And typically we look at what the timing from the last time time we've conducted a continuous monitoring visit. And it's my
understanding nor and Kate, please correct me if I'm wrong during our continuous monitoring for the entire year, we tried a visit at least the site, at least once during the 4 quarters. And so
we will look at when the last time this site was visited. If there's been a business process audit completed, looking at the risk level of the transactions at this particular site. And that's kind of war. So how we
determine which side we're going visit for each particular quarter. Am I missing anything came on or that ice that need
>> based upon your prior view over Processees you determining which went to visit is. >> So for each quarter, so we take it quarter by quarter someone court. We don't want
to visit a site in more than one quarter. we have this. We see issue are high-risk area. So from one port and we're going visit, let's say 10 sites that quarter to we want
to make sure that we visit another set of schools want visit those same school that we visit from court. One. So we kind of want to make sure we at least hit all of those
schools within the 4 quarters, either through site visit or through requesting documentation from that school. >> So when you so you get to a commons on their But for
number sites already did. And they give us ice a visit. So you want to have on 22 school. Roof space can come on. are
number Did it. Correct come mind that these could be the 4 corners and do that. And then amongst those already done, if you feel or didn't he the
gits. Needed. Thank you. He cited do we decide visit some friends, correct? And if I may just supplement a quick point,
he's during those visits. If we see some, you know, like situations that would require a deeper dive audit. >> Then we would do the
business process audit like the first item that we go. Sue and that is a deep dive in that particular school. So when you that to them, but of a site on just in that the
number of sites, a vision, it's ice. >> So I I'm sorry sides to on it. What do you do when we ask? Them to provide you with?
>> And so what we'll do is we'll look at all the transactions across all all the transactions across all the schools. >> We'll look at the amount like over $10,000 because we
know that hey, over $10,000 that's supposed to be a under a contract right? So we look at those those particular transactions over $10,000 or will look at the type of vendor that it is a best buy
is the Amazon, you know, that will be more so consider some of our high high risk areas because we know we have particular regulations and requirements as it relates to buying for from certain certain types of vendors. So
we will look at that as well to see. And then we will look at, you know what our in prior year, what are what are some of exceptions that we know that for the school in the prior year to see, you know, are they are the some of the
similar things that we've noted before. we need to do another visit there. >> So to do just to, you know, all take a look this. The transactions over certain
amount you look at everything. >> Initially we'll look at everything they will try to pull out certain parameters to kind hone in on some of those individually. So
>> If you're looking at the entire quarter is worth transactions for high school, she could be. >> It could. But we will break
it down by. Is it by cash receipts, cash cash, disbursements peak, peak our transaction. So we kind of breaking down into individual and to, you know, individual
buckets. And so we can kind of look at it a little bit more, you know, and eye level and what we're working what type of transactions they are. And also looking at the types of
vendors they are in and out also. >> Yeah. If I may just compliment a little bit is that we looked at the entire population and you are correct
me someone. There's no way that we have looked at examined each on section right, because then that will be the only thing we do throughout the whole year. So what we do is put them into different buckets like that.
Now set, we develop something called scripts. So like, like, for example, she mentioned about 10,000 or we have a few other ones, too. And as as different bucket and when
there are ton sections that kind of what exceptions from those bucket, they may be totally correct. And act like authentic, but it may raise the question right? So then we
will reach out to the school. We wish to do it as a task audit at that time, meaning we're not there yet, but we will. Hey, school way. Can you provide me more supporting the documentation about this
particular transactions and then we're revealing off site. And then when we while it may not be the right way to do, then we will coordinate full site. Visit for those
particular transactions. And after the site visit, if we see something like really not good happening then say, oh, we need to do deeper dive into your other school transactions
as well. And then we call for BPA business process audit. And I do want to add that we do do like random sampling. So some of those will be ran. A random sample. >> But there are some that we
are judgment, mentally sampling as well. Just looking at the amount and the type of vendor. >> So if you didn't, you know, first second quarters put together about. 78 70 sites,
he should have 120 to go for D 3rd and 4th. You need to use the microphone to capture a
voice. >> We already started on the 3rd quarter review and we have about 50 schools. They working on right now. Don't quote, Koreas eased on in the 4th
quarter is up. Okay. Got it. Thank you. Great. Thank you. I miss a chunk County. >> So it do you just because a
Dino Inc. I do know that in some situations it's been difficult to keep Binance tax and there's been so. Looking
at the totals and so 28 sites 78 don't have any exceptions. So that's a 3rd. So two-thirds do have exceptions. And so I
think that would be important. And you may or may not have the is. Where those exceptions are occurring, like an elementary middle or high school because of how the
structure is in terms of, you know, the specific finance tech or that's also finance tech. And then the other information, I think that would be help for us is of all
the of the finance tax, how many of them like the ones that have 28, no exceptions. Are those experience payments tax versus new finance tax so we could retain finance tax or
we're going to see a reduction of exceptions. You know. Or is it just random all across the board? I just think that data might be important.
>> Yeah, and and definitely and we can looked at, you know, by school, by level, I think is pretty, you know, because we have those data set with us year. So we can
analyze But in terms of the whether experience finance tag they liked having way. A lot of turnover, I would need defer to respond.
>> So we actually tried it, tackle it the other way where we're trying to help the schools. Right? So when we look at it, we look at what are the new in vacant
positions across the board. And right now, for example, there's a 28% new in bacon rate across the board. And if you look at the deep dive, that's 56. New in vacant
positions, new meaning they are on the job 9 months or less. But if you take a deeper dive on the new, there's 37 at the elementary school 5 at the
middle school in aid at the high school said there's a large number at the elementary school, which are the A's. So a lot of what happens in the continuous monitoring. We're in the business process.
Audits. Is these findings come about when there's vacancies? There's new positions because the learning curve it takes a good year and you can see at the elementary level, there's
a lot of turnover where there's a lot of new positions and we try to tackle it on the other end where we want to keep them out of the audit. So
we had multiple efforts where where trying to counter it with mandatory a nft trainings so that we can get them trained. We have a two-year mandatory training weve up to
our video library because when we've listened to them and they said, hey, look, we go to your trainings, but we go back and we need refreshers. So we have now 30 videos in Scenario-based trainings that
they can go to and any time that they feel that they need. also trying to put in automation where like a lot of what you've heard today reconciliations is one of the
big things and Pete cart in particular. We're trying make it where it's an online requirements. So they have to upload those things. And then we conceded they do it. If
they're not doing it, we can reach out, try to help them see if they need training. See if they need support. And we're trying to automate the school finance handbook so that it's not just paper book.
It's actually a living document. But we're trying to tackle it multiple ways.
Seeing no further questions. Comments were going to move on. >> 2 item, 1.0, 0, 5, 5.26. Risk assessment and proposed on plan I will call on Miss
Co. >> Thank you, a cliff. And so on today is an exciting day and I think this is one of the most important documents
generated by our office. If I'm a plucky and also next month. Also is important month for internal audit. Some of you may know about it already.
It is the internal Audit Awareness Month. So I think timed it. The good time that we're sharing it here. And I also want to introduce like
like out, hourly automotive here. He has spent a lot of time working on it. He's one of the new face here. In addition to my my team, small
but mighty team. So very proud for each one of you. So with that. Like Ryan mentioned today, we're going to share with the audit committee kind
of the reset out from the risk assessment. And I think I have conversation with many of you about the why we picked audit But if you have any questions,
feel free to let me know and let us know and we can have a conversation. the contents off the presentation is basically
out like to outline the objective, which is under sliced 3, you know, to to get into this whole exercise is to achieve mission mission. Many
people think it's like the numbers only actually is not just numbers only we're looking at on ongoing processes for the school system. To ensure that it is
efficient, effective and be fully accountable. And then the objective is to really link what we're doing with the fcps strategic goals,
specifically Underly. The Accountability and then the loss why we're here today with the audit committee is per the policy. 1, 1, 0, 5, that we
shall submit annually to the audit Comedia work plan and thank you for the clerk to highlight that for the upcoming fiscal year so that you all can take a look at it. And once you concur with it,
we can proceed with the school board discussion. So with that going on to us life or and be how the saucy she's being made. I mean, all the different, you know, steps
that we take and I will try to get on it at a high level. First, we have to identify what the audit topics when you think about it for such a? big
system like us to many, many things that we can consider to audit. So after we identified a potential audit topics we really need to prioritize them
as a resold process. Number one, we identify 47 topics. So we try to work with this. 47 and you saw all my team members here and there's no
way that we can do all the 47 topics in a year. So we developed this approach that we looked at. 21 internal audit departments that include
Maney school districts. And we also looked at Fairfax County government as well because we are in the neighbor who want understand what do they bought it. And it was interesting
that when we do this research, we sometimes we found out that audit plan for the other organization. Look excitedly like us. Then we found out
that they actually relied on our structure on how we're doing it and copy for themself. So I think it's a good story to tell over there. And then after we conduct a benchmarking, we also solicit
feedback. So I'm also very proud to report that that and also thank to of you. I was able to get 14 out of 14 feet bike and you may wonder why 14
is 12 from the school board members and also to from our committee members are here with us. So thank you so much for your feedback on it. And then at the same time, we will
also light to solicit feedback from our employees because they are the eyes and ears. They know what need to be worked on. So we conducted this interview and survnd
I would like to explain a little bit because you may find it a little bit on. Why 59, why not 60 Y 78 is so precise right? So how we come
up with what I talk about us or face first strategies that we want to adopt different ways to kind of collect
feedback. So we've developed a questionnaire. We develop a questionnaire. We sent it to all employees who are senior managers and about except
leadership. Team members. So we roughly 200 sick. We sent a roughly 300 surveys. Let's put it like that. And out of this
300 survey, 78 serve participants responded. So we got a rate of roughly 30% of respondents weight rate. And then. Out of those who did not respond to us. We looked at
kind of what they do in the organization. We reach out to them and we quite request for an interview. So if they have already responded only to interview them, but we looked
at those who did not respond and it happens that may be some of the topics that we would like to explore is area expertise. Then we will ask for an interview with that.
And in addition, we also into view all the leadership team member. So thank you very much for a dog to read and her team willing to spend time with us to talk about what, what? What
are the things that that will be helpful for them? We also talked to the principal associations for all the 3 levels. We we also reached out to some of the association
like less ad director of student Services Association to get their thoughts about what would be value added to audit. So that's how the 59 in
the 78 coming from. And then after we got all the data, then we looked at what the dollar amount, the financial impact. Reputational impact, meaning that if we are not
doing well over certain area, even though the fine men show the price tag attached is not huge. That may have a significant fcps. We would like to identify those topics
to be looked at and then we also evaluate based upon what's happening in our county was kind of discussed at school board meetings. What is kind of like important for the
scoop school districts to consider. Then we will reevaluate everything. And then as a reseller, our product, will be number 3 and then we can determine want to
be looked at next year. Secondary meaning in the next 3 years, meaning from fiscal year. 27 through 29 long-term of those priorities that which is good but can wait for a few
more years down the road. So with that, I'm a drummer over the next sliere is to resell load of what we get from the school board and audit committee risk. Hans
U.S. and we try to make this graph easy to read. So I hope that it makes sense to you. try to kind of that the most that the highest, topic
highest interest audit topics. The one that shaded yellowish the one that with a count of 8 more because the total is 14 counts for school board and
audit committee members. So Hi, Mary, meaning those that we suggest to audit in fiscal year 26. So we have specific contracts. We have health care
claims management. We have safety. We have hourly employee structure and then least notice that for stipends is actually number 5. And we would really want to include
that as part of next year on a topic as well. So you were seeing a little bit that we in copper a stipend into the hourly employee structure, meaning we caught it hourly
employee structure and stipends. Both are human resources focused. And I would like to talk touch upon the athletic program. I would talk
about that in a little bit, too. We notice that this is a very important topic and has a lot of interest. Seems we know that currently we have a external review going on on
athletic program. So we prefer like not to looked at it this year, but instead stipend. He's a part of it, right, as you all know so that we will be including the stipends
componenAnd we will also continue to do to do those announced a gate receipts check. And like Daniel mentioned early So that part of the athletic programs
cover. But we would like to to the external review is done in order to convey in a may be more compressed, comprehensive review. And Phil Carey and
technical education program. We also know that this is a important topic and we should look at that for 2. So instead of looking at it from a process standpoint, looking at
it from instructional services Department standpoint, we are including it. proposed, including it in the business process audit so that we can select school that have
academy or school that have CTE programs, then we will be specifically looking at those financial transaction for them. So we try to include those topics that have high
interest in one way up. Others, even though that we may not be able to include the full audit. So with that Sly 6
is the key outcome. And he's like what we talks about when you looked at it. We our goal is really to develop a holistic plan. So we would like to be able to looked at
something that may be human resources are working on something that safety team is working on for specific contracts. Number 4, we will. We will. We have proposed to
pick 2 departments. One is instructional services department and we also want to pick the specific sorry, the special education Special
Services Department as well. Has to focus and then at the bottom you see, we also have this and new engagement that we will continue to do year after year as we haveery
robust discussion before about continuous monitoring for me as the auditor general, I just think that it is very essential that we have a tool that we can looked at the uni
first of all, time section of schools because that's what we what we do here at Fcps. So
with that Sly 7 more data about the key metrics about a full process audits that we would like to slice. So you
can see who will be our major state holders. Have they been confirmed by benchmarking one of the financial indicators as well. How much are we talking about Fcps employees column,
meaning those employees who suggest those topics as primary topics and for the loss column, you can actually referenced back to slide. 5. This of the statistics that we
got from school board, an audit committee to say they should be listed as primary primary audit. And then moving
on we talked about it already. That's stipends. We proposed to include it together with the hourly employee structure. and some of the topics. The 4
topics listed here. They also got very high interest, but we're not going to include, like I said, the comprehensive re audit off that in fiscal
year 26 and I put down so my team put down reasoning behind. Why not? So and I think touch upon athletic
programs and I talk about CTE. It confidence he's also something very important, especially now we're moving a lot of the things Tron Ecoli scenes right now. We have a
few it related audits you in the process off doing management response for recommendations that we would like to wait a little bit more
well. If I can to to say to s give a little bit more details about the hiring audit. We know that this is an important topic. We are auditing it
right now. And the audit committee should hear their report from in the month of June. So we're couple trying to cover everything in one way
or the other. And slight 9 is time table is the timetable of when we're going to do different things. For example, local school activity. 5, you
might have heard about it many times during the audit committee. We have to carry it over. It's only because we have to audit the year-end
balance as of June. 30th. So we're like we discussed before we hope to present it back in October. And then also have the timing for the other
audits that we proposed. So moving on. I think we have even more exciting things coming up is a lot of the details behind which of the audit. As I know that we can
all read from the slide. So I don't want to beat this lie to you slide. 10 news about local school activity. Fun audit is something that we have been doing because he is required
by Dakota few. Jeanne, a and we're going to look at the catch balance in cash. He referred to catching catching Chris So meaning including tax, including bangs as well.
So just want to highlight that. And moving on to we have extensive discussion about business process audit. So I'm going to skip that since we already talked a lot about the
P a and of course, we would like to continue to do that. Health care claims management we can focus on the scope of work. This is a relatively
short a time audit. So as you can see under schedule, we expect that it will only take 4 to 5 months to complete the intention of this audit is not
for all my team to do claims audits because we don't have that expertise to go to no to pull out the claims to review at Yuri or those cool really
in the insurance area can do that. Our focus is we would like to understand how the office of Benefits Services men aged the claims come out
right? Have we done enough prevention to if we see a pattern of increasing in certain, you know, spending in certain buck at what do we do
about it? How do we monitor Cigna, specifically, Cigna. And also at no hope. And then we'll also see if they have
performed any external audit off them. If they do is the timing aligned with the contract? Timing when we have those contract activists so that we can make more powerful
changes in case if the auditors find anything that is not bright. So that's that. And then moving on Tuesday, hourly employee and stipends. And I think our talk quite a
bit about that already. But if you looked at the objective, you can see what we're going to audit is to evaluate whether there are appropriate checks and balances to ensure
the Audi structure and state properly authorized. And they have the fidelity of implementation across Fcps. And then moving on 5, we have
already talk about local school activity fund. But this will be for the next fiscal year, June 30th of 2026. And then moving on is the school
and office safety. And as you can see that that this remaining as kind of like the focus, I know for management and for all community members as well. So and then we also
benchmark with a lot of our neighboring STIs tricked. This is a topic that often come up in the benchmarking. And we also want to acknowledge that we understand Fcps has
conducted an external review on it in fiscal year. 23. So we see this as a continuation off and we also have multiple conversation with the chief of
safety and security office. So to ensure that we not duplicating work that have already them. So moving along
specific contracts. And this is the champion. If I may say of the entire risk assessment process which get the highest number off support from the school board and also audit
committee members. So continue to looked at it. The focus of it will be on. Like I said, instructional services department and also the
special Services Department contracts. And focusing on those contracts. And how has the use of departments are monitoring them? Our focus will not be on procurement
services because we literally just odd it to them. But we included them as the internal stakeholders because we may need to get some data points.
Some contracts from So moving on, we are almost done so maybe minutes continuous monitoring. We already share the re. So and we would like
to continue next fiscal year. And maybe moving on on Sly 18 and this just some of the thing that we usually put it under all other duties. But we
do want to extract them to highlight them. It's because this year we have some updates from the government auditing stand it. So this is to stand
at that AG comply with. So we have to really update all menu. Update our work program to ensure that in mind. We also want to call for the
external peer review here. Someone may ask. So who AG? So government auditing said that every 3 years we have to have an external review come
review are coming to audit. That's so it happens to be the next fiscal year. So I would like to highlight that here. So moving on under a tent some of the AG duties.
>> Just want to highlight one thing. If I may, the outreach and education as today for this school year over 1000 employees have been trained by
our office. So again, I really appreciate Doctor Rhee to us a lot of opportunity, you know, to present to our employees so that they can see something, say something they come to so
that we also can talk to the school bays, administrative 2% of them as well the finest technician and administrative assistant as school. And then
here is my last page. Next step. So today will be the first time we discussed it with the audit committee. We also put May 12 here just in
case if there are any questions from this committee from today that I need to take it back and amend the plan and then the what session with the school board will be on June
17th. And on that day, we also will present to the board for last fiscal New report wowed fiscal year. 24 AG annual
report which we had already presented with you all back in December. So will be a time for the board to hear about that. And then final approval
will be on July 10th. And then the last slide is the bonus live where we have a lot of hype allaying. So if you would after ESTA your presentation today, I really want to final
more. Whoa, the different things. And here the high So with that. >> Wonderful. Thank you so much. And so General Co
mentioned, we will be discussing this today if we dispense with everything discussion today, we will be able to cancel audit committee
meeting. So please raise any issues now and will take consensus of and if we can move ahead without our may
meeting. So please stay >> I'm I'm so disappointed. Do it because Just a question of The stipends, I assume those are sort of athletic
performing arts. What's the approach of the audit? >> So I think first of all, we have to come from the policy
and regulation first right to see what they say. And then in reality, are we doing that con system the across the district. So that's number one. Number 2. And again, I'm
just bring stabbing now with you, Robin. Number 2 is to looked at the completeness of those lists to because based upon my understanding, we may
have some may not have some other Poe 10 show. Jaap duties that may qualify for extra. I don't know why so. We have also need to take a fresh look
at what makes sense to make to the list and then to see if they are consistently apply across district. >> And the reason I ask the question is having been
someone who receive stipends throughout my career and having employees, I supervise receive stipends one thought could it be possible that the
audit include? >> The possibility of instead of making these individual payments that they become part of it. The employee's salary because then it impacts their retirement. I bring that up
because I do believe there are other jurisdictions in the state of Virginia who make it part of their salary. And so I don't think it's a state law and absolutely in places like
Pennsylvania, New York. It's part of their salary because if I coach 3 sports while each individual check might not be large. Well, tonight, that
could be an extra $8,000 on my salary for that given year. I also would argue that and again, I don't know if part of the audit is whether or not the stipend is appropriate based on the hours because the
other thing I was going to say when it comes in like performing arts, you know, I know a chant, hilly, we did a lot of shows. And I know at some schools into a spring in the fall. Writes, I'm not sure
what that looks like in terms of, you know, are you doing children shows how many people like what's the breakdown? Hourly? And I do believe that, you know what, mostly what's
happening? I think, you know it similar. It could be a number of concert who have maybe in choir. I don't know. I just not sure what it looks like. The one of my questions is. About the stipend and the
other one would be that in that same vein that when people work in online campus. They're technically from my perspective, given the stipend for that because it's not part of their salary now, I'm not
sure if it's paid like in so many payments over the course of a year. But he put people who teach summer school. It's the same thing. It's a it's not part of their salary. And
for the same reasons, I would argue it being part of their salary for other folks are going above and beyond. They're doing more work. It should be part of their salary because as we know your your top 3 years as which
retirements based on so I would limit, I understand you're probably not looking at online campus for summer school right now. But technically, those are statements. Thanks. Thank
Robin. So I think it's great considerations with definitely will consider the kind of what you mention. >> We also very intentionally to keep the objective broad
right now. So we can certainly include certain aspect that can help us ease after we due to planning, then we can if what Robin you just mentioned is systematically happening
and what also be very cognizant because we know that we now have the collective bargaining agreements. So just in case for any recommendations that we may well, we'll be in close
contact with the employee relations because when you talk about salary and then come combination into that, I don't know what t ramifications about that? So
we can definitely talk more. Thank you. Cause I think historically the But I got was that our HR. >> Technology could manage to do a shift like that. But we just invested a lot of money
and a brand new system that should be up capture these things. then it should be able to be done for my from from the from a technical
perspective. Thank you. >> So could be a You know, from the senior managers who
responded to a quest and was so talk to you. any them violent hero, Dr offices to be audited. >> I would like to say I
remain that name, you know, not disclosed the public, right? Yes, yes, woAnd some of them. I feel like that to us long-term that we work very
closely with the school board and the audit committee that we can do to trust. You know, that they know that that we will take you very seriously. Just like like our from ways
and abuse hotline. That's some of them. They really come forward and then we receive some, you know, authentic, you know, situation that really worth to look at.
>> So without disclosing e any identity. What would be some of the reasons for someone to have already committed to only he's won her own work.
>> So >> I think there the intention dry because I do not read the mine the people. So I don't know exactly. Why did they let me know? But I think a couple
them right is definitely generally they they really see if the processes can be improved. Our students right will be able to benefit more. I saw a lot of that, right.
And then we sometimes they may see, you know, may be redone, then like meaning extra checks and balance as an east really delayed the process. So they will let me know too.
Sometimes I need to be candid is maybe some of the offices may be looking for more financial support like budget wise. They will say, hey, at best, are we really like and
or staff? And but then we really see the risk of not mediate. It. Maybe suyenn audit. Maybe I'm saying because I do. I'm very cognizant about the tight in
the budget that. That maybe there are other ways that we can innovate, right? Be able to solve the issue without putting a lot of money investment into what so. So we
got this different types of people or staff members who Jenner in the 80's. Trusting us with those information and see what we can do with that. >> Those are really good
pieces of information. Thank you. >> So athletic programs is a
really big bucket of stuff. And some of that you've already picked out like the gate monitoring but I don't know what the scope is of the
external audit. So how did you look at the whole bucket of everything that's involved athletic and say, OK? We're not going to any thinks that these these 2 things we've picked out already is because
everything else is covered under the external audit or there's some things you just don't think there's any any risk there. Great question I
believe that the external review is a privileged documents. So I am not sure. >> If the objective off that review is, you know, being discussed in the public
domain. But what I suggest you not use this. I would like to take a look at the resell off that external review after is being done and then to see
what other remaining areas that we have to focus on my understanding. And and I don't know if Doctor Murray would like to comment on that about
the scope of work for the external review. study cover pretty comprehensively in the meantime, my office could pick up those 5 men show. Focus
areas like Athletic Athletic stipends that we were just talking about. It and as well a gate receipts because we know that I don't know if you have go through some of our
games the controls. There can be further improved. So we're just picking those items and then we can come to do that. But I don't know if talk to me has additional points. Sure. Thanks, Esther. Actually,
yesterday I talked about this one because it's one that I thought we ought to take care sooner than later. Honestly. >> But a couple things came
up. One. Vhsl just instituted 19 new rules directing topics of this nature that weren't in place before. So Esther's
talked about you need to audit against the rules. So it sort became that became an interesting conversation. And secondly, some of the external investigations likely to look
at it. The auditors work because Esther investigated several of the topics last summer. So it's one of these. So I think think about it. The idea to wait to let's make
sense. And I agreed, you know, with a stir about them. Great thanks. Tenant.
>> Yes, over to general. Come just very briefly to the net. If in any case that's something you know, are shattering is being uncover from this external review.
>> We can always I can always come back to the audit committee to request an adjustment to the audit plan. So it doesn't need to wait into fiscal year. 20th. So sorry. Mislead. You have
something else. So in the Saint Johns County just based on. But Miss Lady talked about in terms of stipends. When you
start looking at that, I think it would be important to collect the data of. How much. A person generally gets and stipends in terms of how it
would impact and and I don't know that it's and I don't know correctly would be a collective bargaining HR issue, whether it's put his salary. So we're working and it becomes salary
understanding of that would go into collective bargaining. So in good afternoon, everyone as it relates to collective
bargaining, anything that would would >> cover wages or salary or compensation is the purview of the unions for that discussion with the superintendent and
the and her team who then would share that with the school board. So we wouldn't want to create a situation where the school board through AG was making recommendations
on salary and compensation without engaging with the unions. >> But just to know, because I think that's an important point other jurisdictions. Do
you at the stipends to the salary? >> No, we do not. They don't. Are you coaching stipends will
any on top of a salary? But then like summer school state bins, you know, after school club activities like the impact that that can have on
some of its retirement in terms of salary. think it doesn't stipends don'tact retirement generally. Sorry, I
have the slate. Explain. I know it doesn't present here, but in your former systems never did did not okay because there are systems where it is. So that's why I bring the
question It didn't in our the came just as certain like if you got mileage monthly or whatever doesn't affect your retirement, that's not considered salary or benefits.
>> Yeah, because one of my thoughts on online campus is I don't like the way the pay structure. I think we're overpaying to many people, but I think that I think they
would admit that they to off the record but but I think that it was rolled into salary. They would accept a different pay because the outcome goal, benefits them in
the long run. It's possible. But again, that would be a collective bargaining item because the it's connected to wages and benefits. >> Because so bad, I'm now
more curious than ever to explore the salary structure and I think will make a note to make sure we do that.
Anything further. >> Okay. So seeing nothing further. I mean, ask for my colleagues consensus that seeing as we've covered this
plan today. That we dispense with our May 17th meeting. site. May 12th May 12th meeting. All those in favor.
That's unanimous consensus has been reached. So. We agreed to move the fy. 26 risk assessment and proposed audit plan forward to the full
board. So with that, the 4/28/2025 meeting of the Fairfax County School Board Audit committee is adjourned at 5.42. the next meeting of our audit committee will be
held in. June's on June. 16th 2025 at 04:30PM. See you all
then. Yes, yeah. Thank you.