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Audit Process Overview: Fiscal 2011 Third Quarter Post-Payment Audits

Post-payment audits are conducted by The Expenditure Audit section of the Comptroller’s Department of Statewide Fiscal Services.

Comptroller’s office responsibilities / Supporting statute

A state agency may request the Comptroller of Public Accounts (Comptroller’s office) to pay a claim against the agency only by submitting the appropriate payment voucher to the Comptroller’s office.

Texas Government Code, Sections 404.046, 404.069, 2103.003, 2103.0035, 2103.004 (Vernon 2008).

State law prohibits the Comptroller’s office from paying a claim against a state agency unless the Comptroller’s office audits the corresponding voucher.

Texas Government Code, Sections 403.071(a) (Vernon Supp. 2009), 403.078 2103.004(a)(3) (Vernon 2008).

State law allows the Comptroller’s office to audit a payment voucher before or after the Comptroller’s office makes a payment in response to that voucher.

Texas Government Code, Section 403.071(g)-(h) (Vernon Supp. 2009).

In addition, state law authorizes the Comptroller’s office to conduct pre-payment or post-payment audits on a sample basis.

Texas Government Code, Sections 403.011(a)(13), 403.079 (Vernon 2008).

Audit objectives

The primary objectives of a post-payment audit are to:

  1. Ensure that payments are documented so that a proper audit can be conducted.
  2. Ensure that payment vouchers are processed according to the requirements of the Uniform Statewide Accounting System (USAS) and/or the Uniform Statewide Payroll/Personnel System (USPS).
  3. Verify that payments are made in accordance with certain applicable state laws.
  4. Verify that assets are in their intended location and are properly recorded in the State Property Accounting System (SPA).
  5. Verify that voucher signature cards and systems security during the audit period were consistent with applicable laws, rules and other requirements.

Methodology

Field Work

Each auditor in the expenditure audit section is required to approach the field work phase of each audit with an appropriate level of professional skepticism based upon the results of the initial planning procedures.

If an auditor suspects during an audit that fraud, defalcations, or intentional misstatement of the facts has occurred, the auditor will meet with his or her supervisor or the Statewide Fiscal Services manager, or both, to decide what course of action or additional procedures would be appropriate.

Reporting

Each auditor audits the payment vouchers included in a sample according to established policies and procedures. The audit findings are reported to the audited agency in the form of a report.

The audit report:

Each auditor: