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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Fiscal Management Post-Payment Audit Report Summary
University of North Texas
Fiscal 2011 Third Quarter

Audit scope

We audited a sample of the University of North Texas’ (University) payroll and purchase transactions that processed through the Uniform Statewide Accounting System (USAS) during the period beginning Sept. 1, 2009, through Aug. 31, 2010.

We also audited all travel transactions and conducted a limited review of payroll deductions and grant transactions for the same audit period.

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.

In our audit of the payroll transactions, we identified:

  • One employee with an incorrect state effective service date that resulted in an overpayment of longevity pay.
  • An error in the processing of longevity pay for twice-monthly employees.
  • Two instances where the lump sum amounts due for accrued vacation time were underpaid to the employees.

We audited a limited number of payroll deductions.

We did not identify any issues within our review of payroll deductions.

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 issues from our review of purchase 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.

Transactions relating to grant payments

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

The review of these payments did not include an investigation of the University’s procedures for awarding the grants or monitoring payments to grantees; therefore, we are not offering an opinion on those procedures.

We did not identify any errors.

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 three 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 39 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 July 23, 2007.

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

  • Incorrect longevity payment
  • Employee retaining ability 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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