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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Fiscal Management Post-Payment Audit Report Summary
Department of Licensing and Regulation
Fiscal 2010 Fourth Quarter

We audited a sample of the Department of Licensing and Regulation's (Department) payroll, purchase, and travel transactions that processed through USAS and USPS during the period beginning Sept. 1, 2008 through Aug. 31, 2009. We also conducted a limited review of payroll deduction transactions.

We audited payroll transactions for compliance with the GAA, the Payroll Guide, and other pertinent statutes. Our audit of the Department's payroll transactions identified issues of incorrect prior state service dates resulting in an over payment of longevity pay. We also identified one missing payroll deduction authorization form.

We audited purchase transactions for compliance with the GAA, Purchase Guide, Procurement Manual, and other pertinent statutes. Our audit of the Department's purchase and procurement transactions identified four instances of POs dated after invoices received.

We audited travel transactions for compliance with the GAA, Textravel, and other pertinent statutes. In nineteen instances, the Department reimbursed an employee for mileage when using a personal vehicle for work related travel. A contracted rental car agency would have resulted in a lower reimbursement amount.

We reviewed the Department's internal control structure. Our review was limited to obtaining an understanding of the Department's controls sufficient to plan our audit and did not include tests of control policies and procedures. We noted one area of risk involving the internal control structure and its operation. The Department had one employee who could process and release payroll vouchers through USPS without oversight.

We concluded a prior post-payment audit of the Department's payroll, purchase, and travel transactions on July 18, 2006. During the current audit, the recurring errors were missing prior state service verification form, PO created after invoice received, and control weakness over expenditure processing. The current audit shows that the Department has made improvements in the purchase area.

Glenn Hegar
Texas Comptroller of Public Accounts
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