Audit Buzz - November 2017

Communications update for November 2017 from the Office of the Auditor General

FY17 School Activity Funds Audit

Report Issued October 2017

Audit Purpose

The school activity accounts for Fairfax County Public Schools (FCPS) were audited for the period from July 1, 2016 to June 30, 2017. The primary purpose of the audit was to determine if cash balances were fairly stated as of June 30, 2017, but an important secondary purpose was to determine the level of compliance with policies and procedures. The school activity accounts were examined as of year-end at the 203 sites in FCPS.

Audit Results

  • The financial statement, presents fairly, in all material respects, the school activity funds cash balance as of June 30, 2017, and the recorded cash transactions for the year then ended using the cash basis of accounting. 
  • Division-wide June 30, 2017 balance of all school activity funds was $22,241,053 
  • Overview of the FY17 Audits, 203 sites were audited
    • 86 schools had audits no reportable exceptions
    • 26% (140) Cash receipts occurrences 
      • Funds not turned in on time 
      • Deposits not done in a timely manner 
      • Documentation was incomplete
    • 38% (201) Cash disbursements occurrences 
      • Payment of invoices not done in a timely manner, incurring late fees 
      • Not proper vendor 
      • Competitive bids not done 
      • Travel regulations not followed
    • 36% (195) Accounting procedures occurrences 
      • Using wrong funds, improper posting of cash receipts 
      • Not doing year end close out procedures on time 
      • Insufficient bank reconciliation procedures 
      • Failure to return advanced appropriated funds 
      • Deficit accounts 
      • Sunshine funds still in school checking account 
      • Not following up on outstanding checks

Upcoming Changes

  • Testing of transactions throughout the year
  • At least 1/3 schools will be visited sometime during the year
  • Some schools will receive site visits during the summer months
  • The summer audit will focus primarily on year end procedures, June 30 bank reconciliations, and year end reports
  • Combining processes for business process turnover audits and local school activity funds audits

Tips for Employees

  • Become familiar with policies, procedures, and best practice guidance
  • Attend training and ask questions
  • Check for contracts before making large purchases
  • Obtain bids for purchases that exceed $5,000
  • Remember that purchases of iPads, iPhones, computers, laptops, etc… must be done via FCPS contracts, not from BestBuy, Amazon, or other vendor
  • Use of advanced appropriated funds is restricted to specific purchases, make yourself aware of the rules