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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Fiscal Management Post-Payment Audit Report Summary
Texas Public Finance Authority
Fiscal 2010 First Quarter

We audited a sample of payroll, purchase, and travel transactions for the Texas Public Finance Authority (TPFA) that processed through USAS and USPS during the period beginning Mar. 1, 2008, through Feb. 28, 2009. We reviewed a limited sample of transactions for the purchase, travel, and payroll groups and of its procurement methods.

We commend TPFA on resolving most of the errors identified during fieldwork. Although we did not identify significant monetary or documentation errors, TPFA must formally address the following issues: missing prior written authorization for actual expenses, missing payroll documentation, employee retaining abilities to expend funds after termination, and control weakness over expenditure processing. No projections were made from the audit findings due to the relatively low dollar amounts in error.

We would like to acknowledge TPFA's achievements in the following areas:

  • The review of purchase transactions and payroll deductions revealed no errors.
  • A review of the BRP Indicator Evaluation Report indicates that all BRP indicators are correct.
  • The review of possible duplicate payments identified no issues.

We also conducted a security review that entailed identifying any of TPFA's employees with security in USAS or USPS or on the voucher signature cards, who terminated employment or whose security had been revoked. Upon termination or revocation, TPFA must observe certain deadlines to revoke security. We identified one employee who remained on the voucher signature cards after termination. TPFA sent the notification but it was not done timely.

In conjunction with our post-payment audit of TPFA's expenditures, we reviewed TPFA's internal control structure. Our review was limited to obtaining an understanding of TPFA's controls sufficient to plan our audit and did not include tests of control policies and procedures. We noted one situation involving a lack of separation of duties. TPFA designated three employees with multiple security capabilities within USPS/USAS without the oversight of another person. We ran a report to determine whether any of TPFA's payment documents processed through USPS/USAS during the audit period because of the action of only one person. There were two documents that processed without another person's electronic oversight. Our review indicates that these payments were characteristic of TPFA's normal expenditures and no additional issues were noted.

We selected a limited number of fixed assets that were acquired by expenditures during our audit period. We verified that all of the assets were in their intended location and were properly recorded in SPA. During the audit period, TPFA did not have any assets reported as missing or stolen in SPA.

We concluded a prior post-payment audit of TPFA's payroll, purchase, and travel transactions on Sept. 25, 2006. We identified errors in that audit relating to missing payroll documentation and control weakness over expenditure processing that were also identified in the current audit.

 


Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
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