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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Fiscal Management Post-Payment Audit Report Summary
State Pension Review Board
Fiscal 2011 Third Quarter

Audit scope

We audited a sample of the State Pension Review Board’s (Board) 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 audited each 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 the Board’s payroll transactions identified:

One employee’s personnel file that was missing prior state service documentation that resulted in an incorrect state effective service date.

Purchase transactions

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

Our audit of the Board’s purchase transactions identified:

  • Nine instances that were missing the documentation needed to determine if the payments were made accurately.
  • Two payments that were missing the training verification documentation to validate that the Board’s employees actually attended the training.
  • Two transactions where the Board paid more than the authorized amount.
  • One transaction in which the Board improperly reimbursed an employee for sales tax.

Travel transactions

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

We identified:

  • One instance where the Board reimbursed an employee for meals that included gratuities.
  • Nine travel vouchers that reimbursed employees for an incorrect amount of mileage.
  • Three transactions where the hotel taxes were coded incorrectly.

Internal control structure

We audited the Board’s internal control structure. Our audit was limited to obtaining an understanding of the Board’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:

The Board designated two employees with multiple security capabilities.

CTIA forms compliance

As a routine part of our security review, we reviewed the Board’s compliance with the requirement that all agency users of the Comptroller State Government Accounting systems complete a Confidential Treatment of Information Acknowledgement (CTIA) form.

The Board did not obtain a signed CTIA form prior to granting access to the systems for three employees.

Fixed assets acquired by expenditures

We selected eight fixed assets acquired by expenditures during our audit period. We verified that:

The assets were in their intended location and accurately recorded in the State Property Accounting (SPA) system.

Internal rules for making equity adjustments

According to the GAA, Article IX, Section 3.08(d), a state agency shall adopt internal written rules relating to making equity adjustments. We noted that:

The Board currently does not have internal written rules for processing equity pay adjustments as required.

Prior post-payment audit and current audit recurring errors

We issued a prior post-payment audit of the Board’s payroll, purchase and travel transactions on May 18, 2007.

The current audit identified four recurring errors from the previous audit:

  • Incorrect amount paid
  • Improper payment of sales tax
  • Improper payment of gratuities
  • Control weakness over expenditure processing
Glenn Hegar
Texas Comptroller of Public Accounts
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