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Fiscal Management Post-Payment Audit Report Summary
Lamar State College – Port Arthur
Fiscal 2010 Fourth Quarter

We audited a sample of Lamar State College – Port Arthur's (College) payroll and purchase transactions that processed through USAS during the period beginning Sept. 1, 2008, through Aug. 31, 2009.

We reviewed payroll transactions for compliance with the GAA, the Payroll Guide, and other pertinent statutes. We noted that the College was relying on incorrect lifetime service credit information to calculate an employee's longevity pay. This caused an overpayment of longevity pay.

We reviewed purchase transactions for compliance with the GAA, the Purchase Guide, and other pertinent statutes. In our review of the purchase transactions, we identified a purchase transaction where the College paid an incorrect amount to a vendor.

We reviewed the College's compliance with the prompt payment law and scheduling rules. In our sample, we identified several transactions that processed late where interest was not paid. During the audit period, the College paid $506.80 in prompt payment interest.

We 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 certain areas of risk involving the internal control structure and its operation. The College had designated two employees with multiple security to process expenditures without oversight.

We issued a prior post-payment audit of the College's payroll and purchase transactions on March 21, 2005. The recurring findings from the previous audit were identified as incorrect longevity pay, interest not paid and control weakness for expenditure processing.