# Internal Audit Committee Meeting, September 28, 2026

The VBSchools Internal Audit Committee met on September 28, 2026. It reviewed three completed reports: an expenditure analysis of approximately $115,000 in division-level spending at Ocean Lakes High School, the FY2026 School Activity Funds Audit, and the annual health care claims audit. The expenditure analysis found two incorrectly coded transactions. The school activity funds audit reported substantial compliance, six findings, and improvement over prior years; management agreed to corrections and training by year-end. The health care claims audit, conducted by Health Care Horizons under a jointly contracted contingency arrangement with the City of Virginia Beach, found the overall error rate declined from 0.17% to 0.15% as claims increased by approximately $7.5 million. The arrangement costs the schools or city 25% of recoverable claims, with no upfront payment. The committee also discussed errors involving ineligible or non-covered claims and expects a written action plan from the claims processor.

In closed session, the committee approved follow-up audits at three schools. It also discussed the upcoming internal audit presentation to the school board and the next risk assessment and work plan. No new contract awards, solicitations, or purchasing approvals were made; the meeting’s votes concerned committee procedure, minutes, closed session, and audit follow-up.

**Jurisdictions:** sled
**Industries:** Healthcare, Professional Services
**Published:** September 28, 2026

### Sources
- [Internal Audit Committee Meeting, September 28, 2026](https://www.youtube.com/watch?v=1Nbm8dkA4MI) - VBSchools