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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Fiscal Management Post-Payment Audit Report Summary
Texas Department of Information Resources
Fiscal 2010 Third Quarter

We audited a sample of the Department of Information Resources' (Department) payroll, purchase, travel, statewide technology center and statewide telecommunication network transactions that processed through the Uniform Statewide Accounting System (USAS) and the Uniform Statewide Payroll/Personnel system (USPS) during the period beginning June 1, 2008, through May 31, 2009.

We reviewed the payroll transactions for compliance with the General Appropriations Act (GAA), State of Texas Payroll Policies and Procedures Guide (Payroll Guide) and other pertinent statutes. We did not note any issues with these transactions.

We reviewed the purchase transactions and a limited sample of statewide technical center and statewide telecommunication network transactions for compliance with the State of Texas Purchase Policies and Procedures Guide (Purchase Guide), State of Texas Procurement Manual (Procurement Manual), USAS processing requirements and other pertinent statutes. In our review of the purchase transactions, we identified instances of purchase orders created after the invoices, missing receiving documentation, and freight not on the purchase order. We did not note any errors in our limited review of statewide technical center and statewide telecommunication network transactions.

We reviewed the Department's compliance with the prompt payment and scheduling laws. In our sample, we identified ten transactions where interest was lost to the state because the Department paid the vendor too early. We also identified one purchase transaction that overpaid prompt payment interest. During the audit period, the Department paid $37,059.91 in prompt payment interest.

We reviewed the travel transactions for compliance with the GAA, Textravel, the Travel Regulations Act and other pertinent statutes. We did not note any issues with these transactions.

We reviewed the Department's internal control structure. Our review was limited to obtaining an understanding of the Department'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. The Department had designated five employees with security to perform multiple tasks through USAS. There were nine documents totaling $177,717.79 that were entered or changed, and processed by one person without oversight. We reviewed several of these transactions during the audit process. Our review indicates that these payments were characteristic of the Department'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 the State Property Accounting System (SPA) and verify existence of the assets. We were able to locate all assets and verify accurate tracking in SPA. However, the Department reported seven assets as missing during the audit period.

We issued a prior post-payment audit of the Department's purchase, travel, payroll, information technology services and statewide telecommunication network transactions on Feb. 28, 2006. One finding from the previous audit, controls over expenditure processing, was also identified in the current audit.

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