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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Fiscal Management Post-Payment Audit Report Summary
Lamar Institute of Technology
Fiscal 2011 Third Quarter

Audit scope

We audited a sample of Lamar Institute of Technology’s (LIT) payroll and purchase transactions that processed through the Uniform Statewide Accounting System (USAS) during the period beginning June 1, 2009 through May 31, 2010.

We audited each sample transaction to determine compliance with applicable state laws.

Payroll transactions

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 LIT’s payroll transactions identified:

  • Several discrepancies in timesheets that were submitted.
  • Oversights in calculations of hours and pay rates that resulted in eight instances of incorrect amounts paid to employees.

Purchase transactions

We audited purchase transactions for compliance with eXpendit, the GAA and other pertinent statutes.

Our audit of LIT’s purchase transactions identified:

  • 16 instances where the purchase order was created after the invoice was received, and
  • Two instances where the purchase order change notice was created after the invoice was received.

Prompt payment law and scheduling rules

We audited LIT’s compliance with the prompt payment laws and scheduling rules.

  • During the audit period, LIT paid $16.56 in late payment interest to vendors from its State Treasury funds.
  • LIT’s procedures for calculating its payment due dates do not comply with the statutes. LIT adds in six additional days to allow for mail time through the United States Parcel Service. As a result, 20 purchase transactions were paid too early, causing interest loss to Treasury.
  • We also identified 16 purchase transactions where interest was not paid.

Internal control structure

We audited LIT’s internal control structure. Our review was limited to obtaining an understanding of LIT’s controls sufficient to plan our audit and did not include tests of control policies and procedures.

We noted one area of risk involving the internal control structure and its operation:

  • LIT has one employee who can process and release in USAS without oversight and can pickup warrants from the Comptroller’s office and approve vouchers.
  • During the audit period LIT had two documents processed through USAS without oversight totaling $24,764.36.

Fixed assets acquired by expenditures

We selected ten fixed assets acquired by expenditures during our audit period.

We located all ten assets and verified accurate recording of the assets.

Prior post-payment audit and current audit recurring errors

We concluded a prior post-payment audit of the LIT’s payroll, purchase and travel transactions on Feb. 23, 2006.

During the current audit, recurring errors identified from the previous audit were:

  • Purchase order created after invoice, and
  • Control weakness over expenditure processing.
Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
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