OAG proposes FY26 audit plan focusing on contracts, staffing/pay practices and safety; committee advances plan to full board

The Office of the Auditor General (OAG) presented its FY26 risk assessment and proposed annual audit plan to the Fairfax County School Board Audit Committee on April 28, identifying prioritized audit topics and a timetable for next year’s work.

General Ko (OAG) opened the presentation by describing the exercise and why the office prioritized topics: “today is an exciting day, and I think this is one of the most important documents generated by our office,” she said, explaining the office identified 47 potential audit topics and conducted benchmarking, surveys and interviews with internal and external stakeholders to prioritize work for FY26–FY29.

Key FY26 proposals: the OAG recommended primary audits in four areas: specific contracts (with a focus on instructional services and special services departments and how user departments monitor contracts), healthcare claims management (reviewing how the Office of Benefit Services manages claims with vendors such as Cigna and Aetna Dental), school and office safety (not duplicating recent external reviews), and an audit of hourly employee structure and stipends (to evaluate authorization, consistent application and fidelity of implementation across FCPS). The office also proposed continuing the local school activity funds audit and the continuous monitoring program.

Discussion at the committee focused on stipends and athletic programs. Committee members asked whether stipends (for athletics, performing arts, online campus, summer school, etc.) might be better handled as part of salary, which could affect retirement calculations. A committee member urged examining whether stipend amounts reflect hours worked and whether pay practices could be centralized. General Ko said the OAG will keep the audit objective broad in planning so it can examine those questions. Dr. Reid and other staff noted collective bargaining and HR technology constraints may affect any move to convert stipends to salary and advised OAG to coordinate with employee relations before making recommendations that affect wages.

On athletics, the committee and OAG agreed to defer a comprehensive internal audit until external reviews conclude; OAG said it will cover specific financial components now (for example, stipend payments and gate‑receipt monitoring) and will reevaluate the need for a broader audit after the external review results are available. One staff member noted that the Virginia High School League (VHSL) recently issued new guidance relevant to athletics and that an external review’s findings could inform OAG priorities.

Timing and next steps: OAG outlined a timetable with planned engagements across FY26 and multi‑year follow-ups. The committee reached unanimous consensus to move the FY26 risk assessment and proposed audit plan forward to the full School Board and agreed to dispense with the May 12 audit committee meeting. The committee chair announced the plan will be presented at a work session with the School Board on June 17 and that final board approval is expected July 10.

Ending: OAG will incorporate committee input into final materials for the School Board work session and return with audit reports and follow-ups per the timetable.