FMX Home
Glenn Hegar  ·  Texas Comptroller of Public Accounts

Fiscal Management Post-Payment Audit Report Summary
Texas Medical Board
Fiscal 2011 Third Quarter

Audit scope

We audited a sample of the Texas Medical Board’s (Board) payroll, purchase, payment card 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:

  • Consultant services
  • Investigation expenses
  • Payroll deductions
  • Non-overnight travel
  • Refund of revenue transactions

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.

We identified:

  • Four employee files missing correct prior state service information that resulted in two incorrect payments of longevity.
  • Four employees without prior state service verification where one employee was underpaid longevity pay.

Purchase transactions (including consultant services and investigation expense transactions)

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

We identified:

  • One document missing the invoice necessary to determine if the payment was valid.
  • 19 instances where the Board created purchase orders after it received the invoices from the vendors.

Payment card transactions

We audited payment card transactions for compliance with the GAA, eXpendit, the Procurement Manual and other pertinent statutes.

The Board paid sales tax on 20 payment card transactions in our sample.

Travel transactions

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

We identified:

  • One improper payment to an employee.
  • Seven transactions where the Board paid incorrect amounts for mileage reimbursements.
  • 35 instances where the Board reimbursed an employee for mileage when using a personal vehicle for work-related travel when a contracted rental car would have resulted in a lower reimbursement amount.

Prompt payment law and scheduling rule

We audited the Board’s compliance with the prompt payment law and scheduling rule.

During the audit period, the Board paid $1,144.95 for prompt payment interest to its vendors.

We identified:

  • Two purchase transactions where interest was not paid though it was due to the vendor.
  • Eleven travel transactions where interest was not paid even though it was due to the vendor.
  • Two purchase transactions where the interest was underpaid.
  • Four purchase transactions where the interest was overpaid.
  • One travel transaction that the Board paid too early, resulting in a loss of interest to the State Treasury.
  • One purchase transaction that the Board paid too early, resulting in a loss of interest to the State Treasury.

Security review

We conducted a security review that entailed identifying any of the Board’s employees with security in USAS or USPS or on the voucher signature cards who terminated employment or whose security had been revoked. Upon termination or revocation, the Board must observe certain deadlines to revoke security.

The Board failed to ensure that the Comptroller’s office received notification in a timely manner about the termination of one employee listed on the Board’s signature cards.

Internal control structure

We also audited the Board’s internal control structure. Our review 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 four 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 two employees.

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 verify accurate tracking in SPA.

Mileage reimbursement rate

A state agency is not required to reimburse employees at the maximum mileage rate. A state agency may specify a mileage reimbursement rate that is lower than the maximum allowable rate per mile under Texas Government Code Annotated, Section 660.007(b) (Vernon Supp. 2004). The agency must notify affected individuals in writing about the lower rate before implementing it.

The Board reimbursed the travelers at a lower rate than the maximum allowable rate per mile; however, the Board did not provide the documentation that they notified affected individuals in writing about the lower rate before implementing it, as required by statute.

Prior post-payment audit and current audit recurring errors

We issued a prior post-payment audit of the Board’s payroll, purchase, travel, payment card, grant and refund of revenue transactions on May 13, 2007.

Several findings from the previous audit were also identified in the current audit:

  • Incorrect longevity payment
  • Missing documentation
  • Duplicate payments
  • Improper payment of sales tax
  • Lack of conservation of state funds
  • Prompt payment and scheduling issues
  • Control weakness over expenditure processing
Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
Comptroller.Texas.Gov | FMX
FMX Sitemap | Contact FM
Accessibility Policy | Privacy and Security Policy