FCPS audit office finds delayed reconciliations, procurement-card and warehouse control gaps

Fairfax County School Board Audit Committee members heard April 28 that the Office of the Auditor General completed five FY25 business process audits and found 17 issues, including four rated moderate and 13 rated low.

Ms. Moore, an auditor with the Office of the Auditor General (OAG), told the committee, “these business process audits ... evaluate the effectiveness of processes and compliance with the applicable regulations and policies, as well as determine if internal controls are adequate and functioning as intended.” The five visits covered four schools and one office (warehouse operations).

The OAG reported four low-risk findings at Daniels Run Elementary and one low-risk finding at West Springfield Elementary. Great Falls Elementary had three low-risk findings and one moderate finding tied to delayed Financial Management Report (FMR) reconciliations: online FMR reconciliations for September, October and November were not reconciled until Jan. 15, 2025 and not approved until Jan. 21, 2025; the completion dates set by Financial Services were in October–December 2024. Mount Vernon High School had a moderate finding for FMR reconciliations for August, October and November 2024 and later hard-copy FMR approvals that were completed in January 2025 instead of the December 30, 2024 dates required by Financial Services. The OAG also noted instances of procurement-card (P-card) statements not being signed by finance technicians.

The warehouse operations audit produced two moderate findings and one low finding. One moderate finding stemmed from a set of sampled procurement-card transactions, totaling about $16,000, related to freight charges paid from a centrally managed warehouse P‑card without a reliable reconciliation that the individual schools had received the shipments. Ms. Moore said the warehouse maintained a central P‑card for UPS and FedEx freight costs while schools placed orders and received shipments; the warehouse paid the central account but could not confirm receipt at the school before payment because there was no consistent communication loop. Mr. Moon asked, “So warehouse needs to make sure the shipments arrived before they make the payments?” and sought clarity about which party is accountable for verifying receipt. A staff member responded that “the owner of the P‑card should be the one verifying,” and OAG indicated procurement is working with the chief operating office to address the control gap.

The second warehouse moderate finding related to a November 2024 FMR that was not approved timely in either the online application or on the physical copy; OAG recommended using the online cover sheet to help ensure timely approvals. OAG said management responses were requested and that the office will follow up quarterly, beginning with a follow-up around the June committee meeting.

Discussion: Committee members pressed for clarity on accountability between schools and central warehouse staff for freight reconciliation and noted the operational risk when central and school-level charges are bifurcated. Committee members also raised questions about large, systemwide procurements—one member cited forthcoming textbook purchases worth “$15 to $70 million” and said the shipment-receipt process would need clear reconciliation practices.

Decision/direction: No formal policy change was adopted at the meeting. OAG will collect management responses to the findings and conduct quarterly follow-ups. The committee did not take a separate vote tied specifically to the business process audit findings at this meeting.

Ending: The OAG will report back to the committee in follow-up meetings on remedial steps and the status of recommended process changes, beginning in the next quarterly update.