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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Fiscal Management Post-Payment Audit Report Summary
Office of the Attorney General
Fiscal 2010 Fourth Quarter

We audited a sample of the Office of the Attorney General's (Office) payroll, purchase, payment card and travel transactions processed through USAS and USPS during the period beginning March 1, 2009, through Feb. 28, 2010.

We audited payroll transactions for compliance with the GAA, the Payroll Guide, and other pertinent statutes. We identified one instance of a missing prior state service verification form.

We audited purchase transactions for compliance with the GAA, Purchase Guide, Procurement Manual, and other pertinent statutes. In our audit of the purchase transactions, we did not identify any findings with exception to the prompt payment and scheduling findings addressed below.

We audited the Office for compliance with the prompt payment law and scheduling rules. In our sample, we identified one purchase and seven payment card transactions where interest was lost to the state because the Office paid the vendor too early. During the audit period, the Office paid $1,246.95 in prompt payment interest. We also identified one purchase and three travel transactions that did not pay prompt payment interest due to the vendor.

We audited travel transactions for compliance with the GAA, Textravel, and other pertinent statutes. We identified one instance in which the Office could have conserved state funds.

Our audit included a limited review of the Office's transactions relating to grants. This review consisted of verifying that the payments made did not exceed the amounts authorized. We did not identify any errors in the payments reviewed. The review of these payments did not include an investigation of the Office's procedures for awarding the grants or monitoring payments made to grantees; therefore, we are not offering an opinion on those procedures.

We reviewed the Office's voucher signature cards and electronic approval security effective during our audit period. The security review entailed identifying any of the University's employees with security in USAS, USPS, Texas Identification Numbers system (TINS), or on the voucher signature cards who were no longer employed or whose security had been revoked. Upon termination or revocation, certain deadlines must be observed so that security can be revoked in a timely manner. One employee retained security to expend funds after her termination date.

We also reviewed the Office's internal control structure. Our review was limited to obtaining an understanding of the Office's controls sufficient to plan our audit and did not include tests of control policies and procedures. The Office designated fifteen employees with multiple security capabilities to process payments without oversight.

We ran a report to see whether any of the Office's payment documents processed through USAS during the audit because of the action of only one person. There was one document changed and processed by one person.

We selected a limited number of fixed assets acquired by expenditures during our audit period to test for accurate reporting in SPA and to verify existence of the assets. We were able to locate all assets and verify accurate tracking in SPA. The Office reported nine assets as missing or stolen during the audit period, with a value of $1,500.76.

We issued a prior post-payment audit of the Office's purchase, travel, and payroll transactions on June 26, 2007. The recurring errors are: payments made past the prompt payment deadline and scheduling issues, missing prior state service verification, and inadequate controls over expenditure processing.

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