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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Fiscal Management Post-Payment Audit Report Summary
Texas State Library and Archives Commission
Fiscal 2011 First and Second Quarter

We audited a sample of the Texas State Library and Archives Commission’s (Commission) payroll, purchase, and travel transactions that were processed through USAS and USPS during the period beginning June 1, 2009 through May 31, 2010. We also conducted a limited review of payroll deductions and grants transactions.

We audited payroll transactions for compliance with the GAA, the Payroll Guide, and other pertinent statutes. Our audit of the Commission’s payroll transactions identified one employee who was underpaid longevity pay because of an incorrect verification of prior state service form. In addition, we identified one instance where the Commission incorrectly paid an employee for overtime pay. We did not identify any errors in our limited review of payroll deductions.

We audited purchase transactions for compliance with eXpendit, the GAA, the Procurement Manuel and other pertinent statutes. During the audit, we identified a transaction where the Commission did not document freight on a purchase order.

We audited travel transactions for compliance with the GAA, Textravel, the Travel Regulation Act and other pertinent statutes. We identified one transaction where the Commission reimbursed an employee for gratuities.

We reviewed the Commission’s compliance with the prompt payment law and scheduling rule. During the audit period, the Commission paid $1,716.61 in prompt payment interest. We identified five purchase and two travel transactions that did not properly pay prompt payment interest. We also identified five transactions where interest was lost to the state because the Commission paid the vendor too early.

We conducted a limited review of the Commission’s transactions related to grant payments. This review consisted of verifying that the payments made did not exceed the amounts and conditions authorized. We did not identify any errors in the payments reviewed. The review of these payments did not include an investigation of the Commission’s procedures for awarding the grants or monitoring payments made to grantees; therefore, we are not offering an opinion on those procedures.

We conducted a security review that entailed identifying any of the Commission’s employees with security in USAS, USPS, 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. The Commission failed to ensure that the Comptroller’s office received notification in a timely manner about the termination of one employee who had security access to USAS and USPS.

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

We concluded a prior post-payment audit of the Board’s payroll, purchase, and travel transactions on May 24, 2007. The audit identified three recurring errors: prompt payment and payment scheduling issues, employee retaining security to expend funds after authority expired, and control weakness over expenditure processing.

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