FCPS warehouse audits reveal $16,000 in procurement discrepancies and approval delays

In a recent meeting of the Fairfax County Public Schools (FCPS) Audit Committee, members gathered to discuss findings from an audit of the warehouse operations, shedding light on some key financial management issues. The atmosphere was focused yet constructive, as committee members reviewed the implications of the findings for the school district's operations.

The audit revealed a minor risk finding related to procurement card transactions amounting to $16,000. These transactions were made outside the established purchasing process, specifically concerning freight management costs incurred through UPS and FedEx. This new centralized process, which was integrated into the warehouse operations under the chief operating office, aims to streamline shipping costs for all schools. However, the audit highlighted a lack of reconciliation for shipments received at the school level, raising concerns about oversight and accountability.

Additionally, the committee noted that purchasing cards for one vendor, UPS, were kept on file, allowing payments to be processed before any reconciliation was conducted by the warehouse office. This practice could lead to potential discrepancies and financial mismanagement.

A second moderate finding pointed to delays in the approval of the 2024 Financial Management Report (FMR) for November 2024. The audit committee recommended utilizing an online cover sheet to ensure timely completion of such reports in the future.

In response to these findings, the committee has requested management to provide a detailed response, with plans for quarterly follow-ups beginning in June. This proactive approach aims to enhance financial oversight and ensure that the necessary improvements are implemented effectively.

As the meeting concluded, the committee members expressed their commitment to fostering transparency and accountability within the district's financial practices, ensuring that the educational environment remains focused on the needs of students and schools. The discussions underscored the importance of diligent financial management in supporting the broader mission of FCPS.