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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Fiscal Management Post-Payment Audit Report Summary
Lamar State College – Orange
Fiscal 2010 Third Quarter

We audited a sample of payroll and purchase transactions processed through the Uniform Statewide Accounting System (USAS) during the period beginning Dec. 1, 2008, through Nov. 30, 2009 at Lamar State College – Orange (College).

We reviewed a stratified random sample of the payroll transactions for compliance with the General Appropriations Act (GAA), the State of Texas Payroll Policies and Procedures Guide (Payroll Guide) and other pertinent statutes. Our audit of the College's payroll transactions identified missing hiring documentation for 23 employees.

We reviewed a stratified random sample of the purchase transactions for compliance with the State of Texas Purchase Policies and Procedures Guide (Purchase Guide), the GAA and other pertinent statutes. During the audit, we reviewed the purchase transactions for compliance with the prompt payment law and scheduling rules. We identified one transaction where the College changed a purchase order after the invoice was received. The College was not checking warrant-hold on vendors paid with local funds during the audit period; however, since Jan. 1, 2010, the College implemented procedures to check warrant-hold on local fund payments.

We also reviewed the College's internal control structure. Our review was limited to obtaining an understanding of the College's controls sufficient to plan our audit and did not include tests of control policies and procedures. We noted one employee had security to adjust Texas Identification Number System (TINS) information and approve vouchers without oversight. We identified two other employees that could enter/change and release payments in USAS without oversight. The College had two vouchers entered and released by one person, totaling $616,146.13. We reviewed both vouchers and determined that the payments were valid.

We selected 10 fixed assets acquired by expenditures during our audit period. We located all 10 of the assets and verified accurate recording of the assets in the State Property Accounting System (SPA). During the audit period, the College had no missing or stolen assets reported to SPA.

We concluded a prior post-payment audit of the College's payroll, purchase, and travel transactions on April 22, 2005. During the current audit, the recurring error was control weakness over expenditure processing. The current audit identified payroll issues not identified during the prior audit.

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