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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Fiscal Management Post-Payment Audit Report Summary
Teacher Retirement System of Texas
Fiscal 2010 Second Quarter

We audited a stratified random sample of the Teacher Retirement System of Texas' (TRS) payroll, purchase, and travel transactions that processed through USAS and USPS during the period beginning Mar. 1, 2008, through Feb. 28, 2009. We also conducted a limited review of payroll deduction, retirement, return of retirement, employee benefit, and refunded revenue transactions and procurement methods.

We reviewed payroll transactions for compliance with the GAA, the Payroll Guide, and other pertinent statutes. Our audit of TRS's payroll transactions identified one instance where the employee's new hire documentation was missing from the human resources file.

We reviewed purchase transactions for compliance with the GAA, Purchase Guide, and other pertinent statutes. During the audit, we identified four purchase orders that were amended after receipt of the invoice.

We reviewed travel transactions for compliance with the GAA, TexTravel, and other pertinent statutes. We found no errors in our review of the travel transactions.

We reviewed TRS's compliance with the prompt payment law and scheduling rule. TRS paid $1,246.13 in prompt payment interest during the audit period. We identified 14 transactions where interest due was not paid and one transaction paid early resulting in interest loss in the treasury.

We reviewed TRS's internal control structure. Our review was limited to obtaining an understanding of TRS's controls sufficient to plan our audit and did not include tests of control policies and procedures. We noted certain areas of risk involving the internal control structure and its operation. TRS had designated two employees with multiple security capabilities. We ran a report to see whether any of TRS's payment documents processed through USAS during the audit period because of the action of only one person. The report revealed no USAS documents either entered and approved, or altered and approved, by the same person without another person's electronic oversight during the audit period.

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 were able to locate all assets and verified the recording of the assets in SPA. During the audit period, TRS reported three assets with a net book value of $3,544.30 as missing or stolen.

We noted that TRS currently has no written rules and procedures for processing equity pay adjustments as required by the GAA, Art. IX, Sec. 3.08.

No errors were identified in our limited review of payroll deductions, retirement, return of retirement, employee benefit, and refunded revenue transactions.

We concluded a prior post-payment audit of TRS's payroll, purchase, and travel transactions on May 18, 2006. The audit identified one recurring error: payment scheduling issues.

 


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