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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Fiscal Management Post-Payment Audit Report Summary
Texas Alcoholic Beverage Commission
Fiscal 2010 Third Quarter

We audited a stratified random sample of the Texas Alcoholic Beverage Commission's (Commission) payroll, purchase, and travel transactions that processed through the Uniform Statewide Accounting System (USAS) and the Uniform Statewide Payroll/Personnel System (USPS) during the period Sept. 1, 2008, through Aug. 31, 2009. We also conducted a limited review of payroll deduction, compensatory per diem, and non-overnight meal transactions.

We reviewed payroll transactions for compliance with the General Appropriations Act (GAA), State of Texas Payroll Policies and Procedures Guide (Payroll Guide) and other pertinent statutes. Our audit of the Commission's payroll transactions identified one instance where the employee's prior state service documentation was missing from the employee's personnel file. In addition, through a separate report generated outside of our sample, we identified eight other employees with undocumented prior state service. This resulted in four underpayments of longevity pay and two underpayments of hazardous duty pay.

We reviewed purchase transactions for compliance with the GAA, State of Texas Purchase Policies and Procedures Guide (Purchase Guide), State of Texas Procurement Manual (Procurement Manual) and other pertinent statutes. During the audit, we identified one purchase order created after receipt of the invoice.

We reviewed travel transactions for compliance with the GAA, Textravel, the Travel Regulations Act and other pertinent statutes. We did not identify any errors in our review of the travel transactions.

We reviewed the Commission's compliance with the prompt payment law and scheduling rule. The Commission paid $2,853.30 in prompt payment interest during the audit period. We identified 14 travel transactions where interest due was not paid and five travel transactions that paid early resulting in interest loss in the treasury.

We reviewed the Commission's internal control structure. Our review was limited to obtaining an understanding of the Commission's controls sufficient to plan our audit and did not include tests of control policies and procedures. We noted no areas of risk involving the internal control structure and its operation.

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 to verify existence of the assets. We were able to locate all assets and verified the recording of the assets in SPA.

We concluded a prior post-payment audit of the Commission's payroll, purchase and travel transactions on Aug. 30, 2006. The audit identified 3 recurring errors: incorrect longevity payments, and prompt payment, and scheduling errors

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