Internal Audit Committee Meeting, September 28, 2026

The VBSchools Internal Audit Committee met on September 28, 2026. Members approved the agenda and prior meeting minutes, and voted to retain David Culpepper as chair. The committee reviewed three completed reports: a non-audit analysis of about $115,000 in Ocean Lakes High School division-level spending, which identified two incorrectly coded expenditures; the FY2026 School Activity Funds audit, which found substantial overall compliance and six findings, including recurring issues with late payments and incomplete documentation; and the annual health care claims audit conducted by Health Care Horizons, a consultant jointly contracted by VBCPS and the City of Virginia Beach. The claims audit reported an overall error rate decline from 0.17% to 0.15% as claims increased by approximately $7.5 million. The committee was told the consultant receives 25% of recoverable claims, with no out-of-pocket cost, and that Sentara was expected to provide a written action plan addressing identified processing errors.

Discussion of the school activity funds audit included purchases from businesses owned by or connected to VBCPS employees; auditors recommended continued adherence to the business-manual review process and increased awareness of required procedures. Management agreed to implement corrections and training by year-end. No new contract awards, solicitations, or purchasing approvals were reported. In closed session, the committee approved follow-up audits at three schools. The next meeting was scheduled for January 13, 2027, when the proposed audit work plan will be presented.