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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Fiscal Management Post-Payment Audit Report Summary
Texas Veterans Commission
Fiscal 2011 Third Quarter

Audit scope

We audited a sample of the Texas Veterans Commission’s (Commission) 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 June 1, 2009, through May 31, 2010.

We also conducted a limited audit of the following:

  • Payroll deduction
  • Rental of space
  • Non-overnight meal 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 Commission’s payroll transactions identified:

Two employees missing prior state service verification resulting in underpayments of longevity pay.

The audit of payroll deductions identified:

One missing deduction form.

Purchase 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 the following during the audit:

  • One expense not payable
  • One purchase order created after the invoice was received
  • Three transactions in which term contracts were not used
  • 11 transactions where the Commission failed to obtain Department of Information Resources (DIR) waivers

Rental of space transactions

We did not identify any errors in our review of rental of space transactions.

Travel transactions

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

We identified the following:

  • One instance in which the Commission failed to conserve funds
  • One instance in which rental insurance was improperly paid
  • One instance of improper coding of hotel tax

We did not identify any errors in our review of non-overnight meal transactions.

Prompt payment law and scheduling rule

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

The Commission paid $130.79 in prompt payment interest during the audit period.

We identified the following:

  • 17 purchase transactions where interest due was not paid
  • One purchase transaction where interest was underpaid
  • Six travel transactions paid early resulting in interest loss to the Treasury
  • Two purchase transactions paid early resulting in interest loss to the Treasury

Internal control structure

We audited the Commission’s internal control structure. Our review was limited to obtaining an understanding of the Commission’s controls sufficient to plan our audit and did not include tests of control policies and procedures.

We noted certain areas of risk involving the internal control structure and its operation:

We identified six employees with multiple security capabilities.

Prior post-payment audit and current audit recurring errors

We concluded a prior post-payment audit of the Commission’s payroll, purchase and travel transactions on Feb. 28, 2007.

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

  • Missing payroll documentation
  • Incorrect payment of longevity pay
  • Prompt payment and scheduling errors
  • Control weakness over expenditure processing
Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
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