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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Fiscal Management Post-Payment Audit Report Summary
Prairie View A&M University
Fiscal 2010 Second Quarter

We audited a sample of Prairie View A&M University's (University) payroll, purchase, travel, payment card, awards and plants, and grant transactions processed through USAS during the period beginning Sept. 1, 2007, through Aug. 31, 2008. In addition, the audit included a sample of locally held appropriated funds (local funds) travel transactions for the same audit period.

We reviewed payroll transactions for compliance with the General Appropriations Act (GAA), the State of Texas Payroll Policies and Procedures Guide (Payroll Guide), and other pertinent authorities. Our audit did not identify any payroll findings.

We reviewed purchase transactions for compliance with the GAA, the State of Texas Purchase Policies and Procedures Guide (Purchase Guide) and pertinent statutes. We identified nine transactions that were paid in excess of the PO; two transactions that paid for freight which was not included on the PO; and one transaction that improperly reimbursed an employee for sales tax. We also observed one purchase order that was created after the invoice, and one transaction that lacked the receiving documentation.

We reviewed payment card purchase transactions1 for compliance with the GAA, the Purchase Guide and pertinent statutes. We noted that since the last audit, the University has significantly increased its use of payment cards. Although the use of the payment cards has allowed the University to quickly purchase and pay for a variety of products and services, it has also increased the number and type of findings. These findings include: inadequate documentation for payment card transactions (missing documentation and incomplete purchase log), payment of honoraria, and missing legal authority for purchase. We also identified five transactions where the use of a credit balance was not timely.

We reviewed travel transactions that were processed through USAS for compliance with the GAA, Textravel and pertinent statutes. In our review of travel transactions, we noted that the University routinely processes third party transactions incorrectly. We also noted one transaction where the University paid the relocation and temporary expenses for a perspective employee. We also reviewed travel transactions that were paid from local funds. We did not identify any errors in these transactions.

We conducted a limited review of the University's transactions relating to grant payments. This review consisted of verifying that the payments did not exceed the authorized amounts. The review of these payments did not include an investigation of the University's procedures for awarding the grants or monitoring payments made to grantees; therefore, we are not offering an opinion on those procedures. We did not identify any grant findings.

We reviewed the University's compliance with the prompt payment and scheduling laws. We identified 16 early purchase payments resulting in a loss of depository interest. We also identified one transaction where interest was overpaid, two transactions where interest was not paid, and one transaction where the interest was underpaid. During the audit period, the University paid $1,502.07 in late payment interest to vendors.

We also reviewed the University's internal control structure. Our review was limited to obtaining an understanding of the University's controls sufficient to plan our audit and did not include tests of control policies and procedures. The University had designated seven employees with multiple security capabilities that allowed them to process payments without oversight. There were 433 documents totaling $17,420,917.68 that were entered or changed, and processed by one person. We reviewed 156 of these transactions totaling $6,326,800.83 during the audit process. Our review indicates that these payments were characteristic of the University's normal expenditures and no additional issues were noted.

We selected a limited number of fixed assets acquired by expenditures during our audit period to test for accurate reporting in SPA and to verify existence of the assets. We located the assets and verified accurate tracking in SPA. During the audit period, the University reported 24 computers and electronic equipment with a net book value of $4,799.09 as missing or stolen.

We generated a report, as of the audit period, to identify possible duplicate payments or duplicate reimbursements from the treasury. The transactions listed on the report were resolved without any findings.

We concluded a prior post-payment audit of the University's payroll, purchase, travel, grant, library book, and locally held appropriated fund travel transactions on April 4, 2005. The current audit shows that there were some areas of improvement in payroll and travel. Since the previous audit, the University has significantly increased the use of payment card purchases which has resulted in numerous findings. Some of the purchase findings from the previous audit were also identified in the current audit. The recurring errors were: improper reimbursement of sales tax, prompt payment issues, and incorrect amounts.

1The review of Payment Card transactions also included the sample for Plant and Awards. Although they were separate samples, all the transactions for Plant and Awards were purchased by payment cards.

 


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