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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Fiscal Management Post-Payment Audit Report Summary
University of Houston – Clear Lake
Fiscal 2011 Third Quarter

Audit scope

We audited a sample of the University of Houston-Clear Lake’s (University) payroll, purchase and travel transactions that processed through the Uniform Statewide Accounting System (USAS) during the period beginning June 1, 2009, through May 31, 2010.

We also conducted a limited audit of the following:

  • Payroll deductions
  • Library book 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.

In our review of the payroll transactions, we identified:

Four incorrect payments of longevity pay.

Purchase transactions

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

In our review of the purchase transactions, we identified the following:

  • One instance where freight was not on the purchase order
  • One transaction including improper payment of taxes
  • One payment missing adequate purchase documentation
  • A purchase order change notice created after invoice

We also selected a limited number of library book purchases from our purchase group as a separate sample for audit of library book purchases:

We did not identify any issues from our limited review of the library book transactions.

Travel transactions

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

We did not identify any issues from our review of travel transactions.

Voucher signature cards and electronic approval security

We audited the University’s voucher signature cards and electronic approval security effective during our audit period.

The security review entailed identifying any employees with security in USAS or on the voucher signature cards who were no longer employed or whose security had been revoked. Upon termination or revocation, the University must observe certain deadlines so that security is revoked in a timely manner.

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

Internal control structure

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

The University designated two employees 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 University reported six assets as missing or stolen.

Prior post-payment audit and current audit recurring errors

We issued a prior post-payment audit of the University’s payroll, purchase and travel transactions on April 10, 2006.

Three findings from the previous audit recurred in the current audit:

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