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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Fiscal Management Post-Payment Audit Report Summary
State Office of Risk Management
Fiscal 2011 Third Quarter

Audit scope

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:

  • Payroll deduction
  • Workers’ compensation/indemnity
  • Workers’ compensation/ medical services
  • Attorney payments
  • Non-overnight travel (meals) transactions

We audited each transaction in the sample 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 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.

Purchase transactions

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.

Workers’ compensation/indemnity

In our limited review of workers’ compensation/indemnity:

We did not identify any errors.

Workers’ compensation/medical services

In our limited review of workers’ compensation/medical services:

We did not identify any errors.

Attorney payment transactions

In our limited review of attorney payment transactions:

We did not identify any errors.

Travel transactions (including non-overnight meals)

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.

Internal control structure

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.

Prior post-payment audit and current audit recurring errors

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:

  • Missing payroll documentation
  • Incorrect payment of longevity pay
  • Control weakness over expenditure processing
Glenn Hegar
Texas Comptroller of Public Accounts
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