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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Fiscal Management Post-Payment Audit Report Summary
Texas State Securities Board
Fiscal 2011 First and Second Quarter

We audited a sample of the Texas State Securities Board’s (Board) payroll, purchase, and travel transactions that were processed through USAS and USPS during the period beginning June 1, 2009, through May 31, 2010.

We audited payroll transactions for compliance with the GAA, the Payroll Guide, and other pertinent statutes. The audit resulted in no payroll findings.

We audited purchase transactions for compliance with eXpendit, the GAA, Procurement Manual, and other pertinent statutes. We identified five transactions in our sample that were supported by four purchase orders completed after the Board received the vendor’s invoice. In addition we identified four instances (represented by six transactions in our sample) where the Board processed print jobs without first obtaining a waiver from the TCI print shop and without utilizing the TCI contracts available. The purchases were obtained through several state print shops.

We audited travel transactions for compliance with the GAA, Textravel, and other pertinent statutes. The audit resulted in no travel findings except for the prompt payment issues discussed below.

The audit included a review of the Board’s compliance with the prompt payment laws and scheduling rules. During the audit period, the Board paid $51.32 in prompt payment interest. In our audit, we identified one travel transaction that was paid late without paying interest to the vendor and one purchase transaction that overpaid interest. Our review also identified four instances that were paid early resulting in interest loss to the treasury.

We reviewed the Board’s internal control structure. Our review was limited to obtaining an understanding of the Board’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 Board had two employees who could pick up warrants from the Comptroller’s office and approve manually prepared vouchers without another person’s involvement. We also noted that the Board did not obtain a signed CTIA form for one employee.

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 verified the recording of the assets in SPA. During the audit period, the Board reported three missing assets.

We concluded a prior post-payment audit of the Board’s payroll, purchase, and travel transactions on Feb. 12, 2007. The current audit shows areas of improvement in payroll and travel. Two findings from the previous audit were also identified in the current audit. The recurring errors were: control weakness over expenditure processing and prompt payment interest not paid scheduling errors.

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