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FY21 - FY22 Audit Plan

Internal Board Audit

Approved by The School Board of Duval County, Florida on May 4, 2021

 

 

EXECUTIVE SUMMARY

Internal Board Audit (IBA) supports and assists the Board of Trustees and District Management in the accomplishment of District goals and objectives by providing:

• Insight into operations,
• Reasonable assurance regarding the effectiveness and efficiency of activities, and
• Independent and objective

 

Generally Accepted Government Auditing Standards and The Institute of Internal Auditors’ Standards require a risk-based audit plan with review and approval from the governing authority.  This report represents IBA’s proposal for a two-year audit plan for the fiscal years ending 2021 and 2022.

Developing the audit plan requires an assessment of risks and prioritization of resources to manage projects effectively.  IBA’s focus will continue on allocating resources in high risk areas and within divisions/fund centers with complex operations. 

Additionally, IBA will devote resources towards the development and maintenance of a quality assurance and improvement program (QAIP).  Through the QAIP process, IBA will identify opportunities for improvement and illustrate conformance to the Standards.  Furthermore, IBA will continue to invest in professional development activities to ensure valuable audit services are delivered to key stakeholders across the District.  Thank you for your time and reviewing the proposed plan.  Your feedback, comments, and requests are welcomed.

  

Proposed FY21-FY22 Audit Plan

The proposed audit plan, displayed below, was developed from a risk assessment which used, among other procedures, review of prior audits, financial comparisons, Auditor General comment trends, along with Board and senior management judgement.  With over 160 fund centers and other critical areas in the District, it is important to prioritize audit activities strategically aligning with the District’s priorities.

1	OPPAGA Follow-Up
2	Fiscal Transparency
3	Marjory Stoneman Douglass Act
4	Use of Restricted Resources
5	Sales Surtax Referendum Oversight

 

Resource Allocation

The majority of IBA available resources should be allocated toward the performance of audits/reviews and their related activities (direct activities).  IBA’s strategy for resource allocation is to dedicate approximately 79% of available resources to internal audits and related activities, which include, risk assessments, follow-up, and referrals/investigations.  The remaining resources or indirect activities (21%) will be directed toward administration (see breakdown displayed to the right).

 

Resource Allocation Breakdown	Percentage
Direct Activities:
Internal Audits (areas listed above)	69%
Risk Assessments	4%
Follow-Up	4%
Referrals/Investigations	2%
Direct Activities Subtotal	79%*
Indirect Activities Subtotal	21%*
Activities Total	100%

*rounded

 

 

Performance Measurements

IBA performance measurements are designed to measure personnel, productivity, communications, and quality of service (see applicable section below for further details).

  

Risk Assessment Process Overview

Section 1001.42(12)(l), F.S., provides, in part, that the internal auditor shall perform a comprehensive risk assessment of all areas of the school system every five years.  This risk assessment was completed during FY 2020-21 and the results thereof were presented at the Auditor Selection Committee meeting held on March 16, 2021.  The presentation contained information on some of the procedures performed and documents reviewed in order to assess the risk of the school system which included the following:

• Comprehensive Risk Assessment (CRA) Questionnaires
• Auditor General Trends
• Schedule of Expenditures of Federal Awards Analysis
• Interviews with Board Members, Senior Management, and Employees in Positions of Special Trust
• Board Meetings, Minutes, and Workshops
• Council of Great City Schools Internal Auditors and Risk Managers Zoom Meetings
• Analytics
• Prior External Auditor Reports
• District Procedures
• General Appropriations Act

As a result of the risk assessment procedures described above, IBA determined the areas listed in the table below warranted the allocation of audit resources during FY 2020-21 and FY 2021-22.  However, because of limited resources, all areas warranting review will not be able to be address by FY 2021-22 (added resources may be considered in the future to satisfy proper coverage of risk).  Based on an analysis of available resources[1] in FY 2020-21 and FY 2021-22 and the combining of some areas with overlap (Sales Surtax revised to include Construction and Charter School Sharing; Marjory Stoneman Douglass revised to include School Safety and Mental Health), it is anticipated that the five areas shown below in red will be addressed by FY 2021-22.  IBA recommends continued monitoring of the remaining areas for the rolling audit plan.

 

HOT TOPICS	DISTRICT-WIDE	AG POPULAR FINDINGS	CRA QUESTIONNAIRES	FEDERAL	OPPAGA FOLLOW-UP
Sales Surtax Referendum Oversight	Information Technology (cybersecurity)	Fiscal Transparency	Workers Compensation	Child Nutrition Cluster	7 Partially Met Subtasks
Marjory Stoneman Douglass Act	Payroll	Construction	Charter School Sharing	Gaining Early Awareness & Readiness for Undergraduate Programs
COVID-19 Issues	Pcard	School Safety	All Remaining "Periodic Review" Items
	Human Resources	Mental Health
	Asset Management (property)	Use of Restricted Resources
	Purchasing	Consutant Contracts
	Contract Management	Decentralized Collections
		Reporting Employee Misconduct
		IT Access Privileges
		IT Risk Assessment

 

[1]  There are 2,448 total available hours covering FY 21 and FY 22, excluding approved holidays and Spring Break.  Specifically, FY 21 has 480 available hours from 4/7/21 through 6/30/21 and FY 22 has 1,968 available hours from 7/1/21 through 6/30/22.

Audit Plan Details

 

1.  OPPAGA FOLLOW-UP:

Examine District records to determine whether the District had taken corrective actions to resolve the seven partially met subtasks reported in the OPPAGA report dated August 28, 2020.

 

2.   FISCAL TRANSPARENCY:

Examine the District Web site to determine whether the 2020-21 fiscal year proposed, tentative, and official budgets were prominently posted pursuant to Section 1011.035(2), F.S.  Also, determine whether the Web site contained the required graphical representations, for each public school within the District and for the District, of summary financial efficiency data and fiscal trend information for the previous 3 years, and a link to the Web-based fiscal transparency tool developed by the Florida Department of Education.

 

3.  MARJORY STONEMAN DOUGLASS ACT:

Examine District records, related to the 2019-20 and 2020-21 fiscal years, to determine whether the District implemented procedures to ensure the health, safety, and welfare of students and compliance with Sections 1006.07, 1006.12, 1011.62(16), and 1012.584, F.S., in addition to, SBE Rule 6A-1.094121, FAC.

 

4.   USE OF RESTRICTED RESOURCES:

Examine District expenditure and transfer records, related to the 2019-20 through 2021-22 fiscal years, to determine whether the District complied with the restrictions imposed on the use of Coronavirus Aid, Relief, and Economic Security Act (CARES) funds.

 

5.   SALES SURTAX OVERSIGHT:

Perform select inquiry, review, and testing procedures as they relate to the District’s sales surtax referendum regulatory requirements, revenues, expenditures, and oversight committee for the period January 1, 2021 through March 31, 2022.

 

 

Audit Plan Schedule

Two Year Audit Plan Schedule

There are two (2) audits scheduled for FY 2020-21 and three (3) audits scheduled for FY 2021-22.  Projects will be completed on a rolling schedule.  For example, projects unable to be completed in FY 2021-22 will roll forward to FY 2022-23.  Any necessary changes to the approved audit plan will be discussed in advance with the Auditor Selection Committee (ASC) and approved by the Board.  All final audit reports will be distributed to the ASC and Board, in addition to, the Superintendent and applicable divisions/fund centers.

 

Scheduling

Q1

Q2

Q3

Q4

FY

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

2021

OPPAGA Follow-Up

X

X

X

2021

Fiscal Transparency

X

X

X

2022

Marjory Stoneman Douglass Act

X

X

X

X

X

2022

Use of Rest. Resources – CARES

X

X

X

X

2022

Sales Surtax Oversight

X

X

X

X

X

  

Goals & Performance Measurements

Generally Accepted Government Auditing Standards and The Institute of Internal Auditors’ Standards require the development and maintenance of a quality assurance and improvement program. Overall, the program should be designed to enable an evaluation of the internal audit activity’s conformance to standards and allow an assessment of the efficiency and effectiveness of the internal audit activity.

In response to this requirement, IBA developed performance measurements designed as a basis for evaluating performance. The measurements presented below include goals for personnel, productivity, communication, quality and effectiveness.

 

	Performance Measurement Summary
#	Measurement Goal/Criteria
	Personnel Measurements	Target Range
1	Number of Staff Certifications	1 or more
2	Professional Development Hours	40 hours or more
	Productivity Measurements
3	Number of Audits completed per year	3 or more
4	Percentage of District Budget Reviewed	5% or more
	Communications
5	Auditor Selection Committee Meetings	4 or more per year
6	Adequate Responsiveness to Board Member Requests	85% or more
	Quality and Effectiveness
7	District Satisfaction Score, % Agree with Services	75% or more