FMX Home
Glenn Hegar  ·  Texas Comptroller of Public Accounts

Fiscal Management Post-Payment Audit Report Summary
University of Texas Medical Branch at Galveston
Fiscal 2011 First and Second Quarter

We audited a sample of The University of Texas Medical Branch at Galveston’s (UTMB) payroll transactions that processed through USAS during the period beginning June 1, 2009, through May 31, 2010. We audited all of the travel, grant, and refund of revenue transactions in the population. We also conducted a limited review of payroll deductions, purchase and medical supplies transactions.

We audited payroll transactions for compliance with the GAA, the Payroll Guide, and other pertinent statutes. Our audit of UTMB’s payroll transactions identified a procedural error in calculating employees’ lifetime service credit. UTMB incorrectly credits a full month of lifetime service credit for a partial month of employment, which may result in incorrect payments of longevity pay. We did not identify any errors in longevity pay during our review of the payroll transactions. In addition, we conducted a limited review of UTMB’s payroll deductions which resulted in no errors.

We audited purchase transactions for compliance with the GAA, eXpendit, and other pertinent statutes. A limited review of medical supply purchases was also conducted. No findings were identified.

We audited travel transactions for compliance with the GAA, Textravel, and other pertinent statutes. We identified reimbursements in excess of maximum allowable amounts and expenses not payable.

We reviewed the University’s compliance with the prompt payment law and scheduling rule. UTMB paid $472.94 in prompt payment interest during the audit period. No other issues were noted.

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

Our audit included a limited review of UTMB’s transactions relating to refunds of revenue. These reviews consisted of verifying that the documentation provided reconciled with the payment amount in our sample. We did not identify any payment or documentation errors in these transactions.

We also reviewed UTMB’s internal control structure. Our review was limited to obtaining an understanding of the UTMB’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. UTMB designated three employees with multiple security capabilities that allowed them to process payments without oversight.

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, reported 146 assets missing and three assets stolen. The net book value of the missing/stolen assets totaled $5,649.55.

We concluded a prior post-payment audit of UTMB’s payroll, purchase, travel, refund of revenue, and medical supply transactions on April 21, 2006. The audit identified two recurring errors: reimbursement in excess of maximum allowable rate, and control weakness over expenditure processing.

Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
Comptroller.Texas.Gov | FMX
FMX Sitemap | Contact FM
Accessibility Policy | Privacy and Security Policy