We audited a sample of the State Office of Risk Management’s (Office) 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 Sept. 1, 2009 through Aug. 31, 2010.
We also conducted a limited audit of the following:
We audited each transaction in the sample to determine compliance with applicable state laws.
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 Office’s payroll transactions identified:
One employee with missing verification of prior state service resulting in an underpayment of longevity pay.
The audit of payroll deductions identified no errors.
We audited purchase transactions for compliance with the GAA, eXpendit, the State of Texas Procurement Manual and other pertinent statutes.
In a report generated outside our purchase sample, we identified:
Five duplicate payments.
In our limited review of workers’ compensation/indemnity:
We did not identify any errors.
In our limited review of workers’ compensation/medical services:
We did not identify any errors.
In our limited review of attorney payment transactions:
We did not identify any errors.
We audited travel transactions for compliance with the GAA, Textravel and other pertinent statutes.
We identified one instance in which:
The Office failed to conserve state funds.
We did not identify any errors in our limited review of non-overnight meals.
We reviewed the Office’s internal control structure. Our review was limited to obtaining an understanding of the Office’s controls sufficient to plan our audit and did not include tests of control policies and procedures.
We identified:
Five employees with the security to process and release payments in USAS without electronic oversight.
We concluded a prior post-payment audit of the Office’s payroll, purchase, and travel transactions on July 13, 2007.
The current audit identified three recurring errors from the previous audit: