The Fairfax County Public Schools (FCPS) Audit Committee convened on April 28, 2025, to discuss the ongoing audit processes and findings related to local school activities funds. The meeting focused on the methods employed to assess financial risks and ensure compliance with regulations.

The committee highlighted the importance of continuous monitoring in identifying exceptions and risks in financial transactions. This approach allows for timely interventions and adjustments in auditing practices. The results from the first quarter of fiscal year 2025 were reviewed, indicating that a sample of transactions was analyzed to pinpoint high-risk areas. For the second quarter, site visits were conducted at 60 schools, where supporting documentation for various transactions was requested.

During the review, it was noted that out of 78 sites, 36 had no exceptions, while 28 sites reported exceptions in three or fewer areas. The committee detailed specific exceptions found, including:

- **Non-Bank Reconciliation Exceptions**: Ten sites had issues related to PCAR statements not being signed or reconciled timely.
- **Bank Reconciliation Exceptions**: Six sites faced problems with bank reconciliations not being signed or completed on time.
- **Purchasing Process Exceptions**: Four sites had procurement issues, including unauthorized purchases and exceeding approval limits.
- **Timely Deposit Exceptions**: Four instances were noted where funds were not deposited promptly.
- **Incorrect Account Charges**: Three exceptions were identified where transactions were charged to incorrect accounts.
- **Safeguarding Assets**: Three sites had issues with securing check stock and P cards.
- **Competitive Bidding Exceptions**: Two instances were noted where purchases over $10,000 were made without competitive bidding.
- **Sufficient Documentation**: Two exceptions involved missing key documentation for transactions.
- **Timely Payment Exception**: One instance was noted where an invoice was not paid on time, although no late fees were incurred.

The committee emphasized the need for ongoing audits and monitoring to address these exceptions and improve financial practices across the district. The findings from these audits will be included in the upcoming FY 25 local school activities funds audit report, expected to be released in October 2025. The meeting concluded with a commitment to enhance oversight and ensure compliance with financial regulations in the future.