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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Fiscal Management Post-Payment Audit Report Summary
Texas Office of Public Insurance Counsel
Fiscal 2011 Fourth Quarter

Audit scope

A sample was audited of the Texas Office of Public Insurance Counsel’s (Counsel’s) payroll, purchase and travel transactions that processed through the Uniform Statewide Accounting System (USAS) and the Uniform Statewide Payroll/Personnel System (USPS) during the period beginning Mar. 1, 2009, through Feb. 28, 2010.

Each transaction was audited to determine compliance with applicable state laws.

Payroll transactions and deductions

Payroll transactions were audited for compliance with the General Appropriations Act (GAA), the Texas Payroll/Personnel Resource and other pertinent statutes.

  • No payment or documentation errors were identified in the audit of the payroll transactions.

Purchase transactions

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

The following errors were identified:

  • 25 transactions where the purchase order was created after the Counsel received the invoice from the vendor
  • Two transactions where the Counsel failed to request the waiver from the Department of Information Resources (DIR) for information technology services
  • Two transactions for which the Counsel did not take the discount offered

Prompt payment law and scheduling rule

The Counsel’s compliance with the prompt payment law and scheduling rule was reviewed.

The following errors were identified:

  • Four purchase transactions where Interest due the vendor was not paid
  • Four purchase transactions that were not properly scheduled resulting in interest lost to the State Treasury

Travel transactions

Travel transactions were audited for compliance with the GAA, Textravel and other pertinent statutes.

  • One transaction was identified in which the Counsel reimbursed an employee for the amount of gratuity paid.

Internal control structure

The Counsel’s internal control structure was reviewed. The review was limited to obtaining an understanding of the Counsel’s controls sufficient to plan the audit and did not include tests of control policies and procedures.

The following was noted:

  • Two employees had the security to perform multiple tasks without another person’s oversight.

CTIA forms compliance

As a routine part of the security review, the Counsel’s compliance with the requirement that all agency users of the Comptroller’s state government accounting systems complete a Confidential Tax Information Agreement (CTIA) form was audited.

The following was noted:

  • The Counsel did not obtain a signed CTIA form in a timely manner for two employees.

Fixed assets

A limited number of fixed assets acquired by expenditures were selected during the audit period to test for accurate reporting in the State Property Accounting System (SPA) and to verify existence of the assets.

The following was noted:

  • All assets were located and accurate tracking in SPA verified
  • No assets were reported missing or stolen in SPA during audit period

Prior post-payment audit and current audit recurring errors

A prior post-payment audit of the Counsel’s payroll, purchase and travel transactions was issued on Nov. 28, 2007.

The current audit identified the following recurring errors:

  • Discount not taken
  • Prompt payment and payment scheduling issues
  • Control weakness over expenditure processing
Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
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