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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Fiscal Management Post-Payment Audit Report Summary
Angelo State University
Fiscal 2010 Fourth Quarter

We audited a sample of Angelo State University's (University) payroll and purchase transactions that processed through the uniform statewide accounting system (USAS) during the period beginning March 1, 2009, through Feb. 28, 2010. We also conducted a limited review of library purchases and payroll deductions.

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 statutes. Our audit of the University's payroll transactions identified four personnel files that were missing the verification of prior state service documentation. Three of the four documentation issues resulted in underpayments of longevity pay. We also identified a longevity payment for another employee that was prorated in error. In addition, the University did not retain two employees' personnel action forms in its human resources file to validate the employees' original hire date. We did not identify any errors in the limited review of payroll deductions.

We reviewed purchase transactions for compliance with the GAA, the State of Texas Purchase Policies and Procedures Guide (Purchase Guide), and other pertinent statutes. During the audit, we identified two purchase agreements that were created after the invoice date. We also identified one payment of a membership fee not authorized by the head of the University or his designee and payments for freight charges that were not properly documented on the purchase orders (PO).

We reviewed the University's compliance with the prompt payment law and scheduling rules. The University paid $0.70 in prompt payment interest during the audit period. We identified three purchase and two library transactions where interest due was not paid. We also identified eight purchase and two library transactions that paid early resulting in interest loss to the treasury.

We 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. We noted certain areas of risk involving the internal control structure and its operation. The University had designated six employees with multiple security capabilities that allowed them to process payments without oversight.

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. During the audit period, the University reported 22 assets missing or stolen with a net book value of $2,554.70.

We concluded a prior post-payment audit of the University's payroll, purchase, and grant transactions on May 31, 2006. The audit identified three recurring errors: purchase order created after invoice, prompt payment and payment scheduling issues, and control weakness over expenditure processing.

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