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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Fiscal Management Post-Payment Audit Report Summary
Commission on State Emergency Communications
Fiscal 2011 Third Quarter

Audit scope

We audited a sample of the Commission on State Emergency Communications’ (Commission) payroll, purchase and travel transactions that processed through the Uniform Statewide Accounting System (USAS) and the Uniform Statewide Payroll/Personnel System (USPS) during the period beginning Dec. 1, 2009, through Nov. 30, 2010.

We also reviewed a limited sample of the payroll deductions and grants transactions to determine compliance with applicable state laws.

Payroll transactions and deductions

We audited payroll transactions for compliance with the General Appropriations Act (GAA), the State of Texas Payroll Policies and Procedures Guide (Payroll Guide) and other pertinent statutes. Our audit of the Commission’s payroll transactions identified:

One employee file that did not have the necessary supporting documentation.

We did not identify any issues during our review of the payroll deductions.

Purchase transactions

We audited purchase transactions for compliance with the GAA, eXpendit, the State of Texas Procurement Manual and other pertinent statutes.

During the audit, we identified:

  • Six transactions for information technology services where the Commission did not obtain a Department of Information Resources (DIR) waiver.
  • One transaction where the purchase order was created after its corresponding invoice.

Travel transactions

We audited travel transactions for compliance with the GAA, Textravel and other pertinent statutes:

We did not identify any errors during our review of the travel transactions.

Prompt payment law and scheduling rules

We reviewed the Commission’s compliance with the prompt payment law and scheduling rules:

  • During the audit period the Commission paid only $2.91 in prompt payment interest.
  • We identified one purchase transaction that did not properly pay prompt payment interest when it was due.
  • We identified eight purchase transactions where interest was lost to the state because the Commission paid the vendor too early.

Grant Payments

We conducted a limited review of the Commission’s transactions related to grant payments. This review consisted of verifying that payments made did not exceed the contract amounts.

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 did not identify any errors in the payments reviewed.

Internal control structure

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 two employees with multiple security capabilities allowing them to process transactions without oversight.

Fixed assets acquired by expenditures

We selected a limited sample of fixed assets acquired by expenditures during our audit period to test for accurate reporting in the State Property Accounting System (SPA) and to verify existence of the assets.

We did not identify any errors during our review of fixed assets.

Prior post-payment audit and current audit recurring errors

We concluded a prior post-payment audit of the Commission’s payroll, purchase and travel transactions on Aug. 13, 2007.

The current audit identified one recurring error from the previous audit:

Control weakness over expenditure processing.

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