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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Fiscal Management Post-Payment Audit Report Summary
Texas Department of Public Safety
Fiscal 2011 Third Quarter

Audit scope

We audited a sample of the Texas Department of Public Safety’s (Department) payroll, purchase and travel transactions that were 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
  • Employee relocation
  • Non-overnight meal
  • Grant transactions

We audited each transaction 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 Department’s payroll transactions identified:

Five missing verifications of prior state service all resulting in underpayments of longevity pay.

The audit of the payroll deductions identified:

One missing deduction form.

Non-overnight meals/Employee relocation expenses

We did not identify any errors in our review of non-overnight meals or employee relocation expenses.

Purchase transactions

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

We did not identify any errors in our review of the purchase transactions except for the schedule issued discussed below.

Travel transactions

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

One instance in which the Department reimbursed an employee for lodging that was paid in excess of the contract rate.

Prompt payment law and scheduling rule

We reviewed the Department’s compliance with the prompt payment law and scheduling rule. We identified:

  • The Department paid $598,554.46 in prompt payment interest during the audit period. The Department noted that $560,968.71 of the total amount of interest was disaster-related interest charges.
  • Six travel transactions where interest due was not paid.
  • Four purchase transactions were paid early resulting in interest loss to the Treasury.

Transactions relating to grant payments

We conducted a limited audit of the Department’s transactions relating to grant payments. This review consisted of verifying that the payments did not exceed the authorized amounts.

The audit of these payments did not include an investigation of the Department’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.

Security review

We conducted a security review that entailed identifying any of the Department’s employees with security in USAS, USPS or on the voucher signature cards who were no longer employed or whose security had been revoked. Upon termination or revocation, certain deadlines must be observed so that security can be revoked in a timely manner.

The Department failed to ensure that the Comptroller’s office received notification in a timely manner about the termination or revocation of seven employees who had security access to USAS and/or USPS. One of these employees was not timely removed from the signature cards.

Internal control structure

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

We identified one employee with multiple security capabilities.

Fixed assets acquired by expenditures

We selected a limited number 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 were able to locate all assets and verified the recording of the assets in SPA.
  • During the audit period, the Department reported 111 assets missing and three assets stolen. The net book value of the missing/stolen assets totaled $29,885.32.

Prior post-payment audit and current audit recurring errors

We concluded a prior post-payment audit of the Department’s payroll, purchase and travel transactions on Aug. 3, 2007.

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

  • Missing payroll documentation/underpayment of longevity pay
  • Prompt payment and scheduling errors
  • Employee retained ability to approve paper vouchers and security to expend funds after termination
  • Control weakness over expenditure processing
Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
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